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  • Danny Alexander – 2013 Speech on the National Infrastructure Plan

    Below is the text of the speech made by Danny Alexander, the Chief Secretary to the Treasury, on 4th December 2013 at The Institution of Civil Engineers.

     

    dalexander

     

    Introduction

    I hope that Paul’s [Deighton, Commercial Secretary to the Treasury] comments…

    And those completed projects he ran us through…

    Show that our infrastructure plan is making a difference in every corner of Britain…

    Underground, overground…

    On shore, off shore…

    Wired, wireless…

    Tarmac, train track…

    You name it. We’re building it. Right now.

    And the renewal of our infrastructure is renewing the very foundations of our economy.

    I’m enormously grateful to Paul, for the excellent job he’s done – during his first year in office – in taking that work forward.

    His influence has been felt not just down the corridor at the Treasury…

    But across the rest of Whitehall and beyond.

    But while we celebrate delivering today…

    We should also remember that these – the National Infrastructure Plan and the Investment Pipeline – are live documents.

    And for me – they serve three main purposes.

    First – as we’ve heard – they act as a benchmark against which we can measure our progress.

    Second – their existence helps to embed the idea of infrastructure as a vital part of our national life.

    And third. They give long term clarity and certainty to investors and the public.

    In developing the National Infrastructure Plan – as Paul said – we’ve worked in close collaboration with industry and finance…

    To make sure we meet your needs, and remove any obstacles to delivering the programme.

    You told us you wanted a clearer picture of future work.

    So we created the pipeline.

    You asked us to have a greater sense of priority…

    So we designated the top 40 projects.

    And you asked us to make it easier to get those priority projects through the system.

    So we’ve listened, and we’ve delivered all the reforms to planning and judicial review that Paul has just set out.

    The pipeline is the most comprehensive overview of planned and potential infrastructure investment ever produced.

    It also acts as a prospectus for investors, identifying key UK private and public sector infrastructure requirements for decades to come.

    Add the certainty that provides, to the economic stability the government is overseeing…

    And you can see why Britain is now ranked number one in the Nabarro Infrastructure Index for attracting investment…

    Which takes into account factors like credit and taxation and innovation.

    I’m delighted that investors are realising this, and taking advantage of the opportunities it offers.

    Today, a group of insurers…

    Aviva, Friends Life, Legal & General, Prudential, Scottish Widows and Standard Life….

    Have made a commitment to work with government and regulators…

    And invest £25 billion in UK infrastructure over the next five years.

    This was made possible because the government negotiated a successful outcome on Solvency II…

    Which has put insurers in a strong position…

    To make longer term investments.

    I’m delighted that those companies have made that commitment…

    It is a fantastic contribution to Britain’s economic future by some of Britain’s most impressive companies.

    It represents a massive vote of confidence in the UK economy…

    And it will play a key role in financing key projects.

    It also serves as real evidence that if the government demonstrates a long term vision…

    It will help us to secure long term funding…

    Which will lead – in turn – to sustainable, strong, long term growth for our economy.

    Today’s plan also sets out our intention to increase publically owned corporate asset sales from £10 billion to £20 billion by 2020…

    Including exploring the sale of Eurostar.

    While no final decision has been made, government shouldn’t own assets it doesn’t need…

    And we should look at where these proceeds can be reinvested, including in Britain’s infrastructure.

    So this document before you, builds on the long term commitment of taxpayers’ money that I set out in the Commons this June.

    And it contains a series of new measures that will create opportunities for new jobs and for new growth across the UK.

    Transport

    Most of the value of the pipeline lies in our energy and transport sectors.

    Transport is an area where a little investment from government…

    Can go a long way towards bringing investment from elsewhere.

    Take Kings Cross which Paul mentioned earlier.

    We committed £500 million of public investment into its redevelopment…

    Which attracted – in turn – over £2 billion from the private sector, and led to the complete regeneration of that part of London.

    Between April and September this year we invested £15 million every day towards improving our rail network…

    And we hope our investment will unlock private investment at some of those stations…

    Like Manchester, Birmingham and Reading…

    That are seeing the benefits of that money.

    But we also have to keep looking at other stations where further investment could unleash growth.

    Howard Davies – whose interim report is due to be published later this month…

    Recently wrote to Government pointing out the importance of improving surface access to airports.

    And we agree.

    The current station at Gatwick hardly provides the best first impression of Britain.

    And it sits on a key transport route, linking London to some of our great coastal towns.

    So we’ve decided – subject to contributions from the airport itself – to provide £50 million to the cost of building a new rail station at Gatwick…

    And to commission studies exploring rail and road improvements at both Heathrow and Stansted…

    As well as the Brighton line.

    This is good for those airports…

    And the communities that surround them.

    On our roads too – as we’ve seen – rapid progress is being made.

    But across the country, there are still too many pinch points where it isn’t just traffic that’s being slowed down.

    It’s growth too.

    87 schemes have already been funded through our local pinch point fund…

    But more work – and on a bigger scale – needs to be done.

    At the A50 for example, where residents and businesses in the area face delays and congestion every day.

    So today I’m adding it to our priority roads programme…

    So we can work with Staffordshire Council, the LEP, and the Highways Agency to find a solution.

    We’re also making progress on the other routes where we identified blockages in June.

    We’ve started feasibility projects into a number of areas, including:

    – the A1 from Newcastle to Scotland

    – the A303

    – the A27

    – and the Trans-Pennines routes

    And we’ll be publishing our plans for all those routes by this time next year.

    As we develop those plans, we’ll do our best to keep the public as involved as possible…

    Just as we did with our proposals for the A14, where we set out a consultation exploring the idea of a tolled section of road.

    The A14 is a crucial link to the Haven ports – which are predicting a three-fold increase in throughput by 2030…

    And improving the road could also support 10 000 new homes…

    And a 22% increase in local jobs…

    So we’ve listened to the consultation responses, and we’ve come to the decision that…

    When this road goes ahead in three years time…

    There will be no toll.

    This will not lead to any delay in delivery…

    And the cost will be covered by government.

    But, as well as the economic benefits that our transport network brings…

    We should remember that infrastructure can also add to the cultural life of our country, and our civic pride.

    That’s why the government will be providing £30 million to help make the dream of a Garden Bridge over the Thames a reality.

    Providing this investment will – I’m certain – help the Bridge’s Trust to secure private donations for the scheme…

    And move us closer to the target of a 2017 opening.

    And as well as building the bridges and the railways and the roads for the future…

    I want us to build the cars of the future too.

    This summer government committed £500 million of funds to support ULEVS.

    Details of which will be set out soon…

    And today’s National Infrastructure Plan puts £5 million towards promoting the use of ULEVs for all Government car fleets.

    But there are other opportunities for Great Britain too.

    At present, the main advances in driverless car technology are happening in California.

    Apparently they’re making progress, but they’ve found that the cars only really work in sunny weather.

    So the UK has something to offer here!

    And the National Infrastructure Plan contains plans to put our country at the forefront of driverless car technology.

    Digital

    If we want to be world leaders in new technology though…

    We’ll need to have the right digital networks in place to support those industries of the future.

    Paul laid out our progress on making 95% of households superfast.

    But we believe that everyone should have access to the opportunities the internet offers.

    Especially with more and more of our lives and our jobs – perhaps even our democracy? – moving online

    That’s why we’ve decided to open – as part of this update – a new £10 million competitive fund…

    Which will market-test the kind of bold and inventive solutions that could deliver broadband to the most difficult to reach parts of the UK.

    No area – no matter how remote – should be left behind.

    Energy, the need for certainty, strike prices…..

    Finally, the need for investment in our energy sector is enormous.

    The energy measures we announced at the weekend will ease the burden of gas and electricity bills on hard pressed families over the next couple of years…

    Without in any way undermining the support for investment in electricity generation.

    But those lower bills will only be sustainable if we deliver that investment in newer and cleaner sources of electricity…

    And this document updates you on our progress.

    Back in June, I announced the draft prices the government will guarantee for those investing in renewable energy.

    And this Plan updates and confirms the final prices we’ll pay.

    It shows that the price we’re willing to pay for onshore wind and large scale solar farms has come down.

    So we can drive every penny of efficiency…

    And get consumers the best possible deal.

    It shows that we’ve maintained the amount we’ll pay for converting coal stations to biomass.

    And it also shows that we’ll increase what we pay for offshore wind in 2018-19.

    We believe that this plan will mean delivering 10GW of offshore wind by 2020 is achievable – perhaps more if the prices come down.

    This protects our commitment to green energy….

    While ensuring we get the best value for money for consumers, and ensure the huge potential of offshore wind is fulfilled.

    But it’s not just wind, wave and tidal power that are seeing the benefits of our policies.

    Just twenty minutes ago…

    In this very building…

    I signed an agreement with Hitachi and Horizon…

    Which commits us in principle…

    To offering a guarantee for their Nuclear Power Station at Anglesey.

    There is work to be done…

    And putting the financing plan together will be a commitment from both sides.

    But the agreement today shows that…

    Just as we did with Hinkley…

    This Government is prepared to give certainty to investors…

    To help them make the financial decisions that are critical for our nation’s infrastructure.

    The power station this agreement will support is set to create around 1,000 permanent jobs once complete…

    With a peak workforce of over 5 000 during construction.

    And – along with the other Guarantees agreed in principle…

    It shows that the government is doing all it can:

    – to secure a stable, certain environment for energy investment…

    – to create jobs…

    – and to ensure the UK plays its full part in tackling climate change.

    Conclusion

    As I see it, this plan is a blueprint for Britain…

    From which we will literally build the foundations of our future prosperity.

    I want to see everybody…

    Be they politicians or investors…

    Project managers or engineers…

    Getting behind it.

    And helping to deliver it.

    It’s a plan that demonstrates a long term vision, for our energy and our transport and our digital networks…

    It’s a plan that is helping to secure long term investment – as we’ve seen from the insurance sector…

    And ultimately, it’s a plan that will lead to sustainable, strong long term growth.

    And help us to build a stronger economy in a fairer society, where everyone can get on in life.

    Thanks for listening.

  • Danny Alexander – 2013 Speech on Scottish Independence

    Below is the text of the speech made by Danny Alexander, the Chief Secretary to the Treasury, to the Institute of Chartered Accountants in Scotland on 5th November 2013.

     

    dalexander

     

    I’m very glad to be here with you this evening.

    I must also say, I’m glad to have an excuse not to be in the Houses of Parliament on bonfire night.

    It’s been 408 years, but you can’t take any chances!

    Perhaps there aren’t yet fireworks in the UK economy, but we’re on the way back.

    Not fully recovered, but we are seeing signs of recovery.

    It has been a long, hard road.

    And there’s a long way to go.

    But – thanks to the hard work of businesses, the length and breadth of the UK – we are starting to see signs of a recovery.

    Scotland is playing a key role in helping the UK economy to turn the corner.

    Scottish business proving – once again – that Scotland is highly successful within the UK.

    In 2012 Scotland had a higher economic output per head than Denmark, Finland and Portugal…

    A higher employment rate than Finland, Ireland and Luxembourg…

    And Edinburgh is one of the cities really leading the way…

    With output per head at 165% the UK average.

    Those successful cities and companies…

    Really benefit from being part of a strongly integrated UK.

    Where nearly two thirds of Scottish exports go to the rest of the UK.

    And in capital…

    With 84% of mortgages…

    91% of pensions…

    And 89% of ISAs…

    Provided by Scottish firms to non-Scottish customers.

    And – in return – 70% of Scottish pension holders…

    And over half our mortgage owners…

    Having bought products outside Scotland.

    Those cities and those companies and those industries performing well…

    Have been able to help our economy because of decisions taken by the UK government…

    Our efforts to build a more competitive and fair tax system.

    To tackle regulation.

    To reform the planning system.

    Obviously not in Scotland – that’s a matter for the Scottish Government.

    To invest in our skills and infrastructure…

    And – of course – every accountant will know the importance of balancing the books…

    And the very tough decisions we’ve had to take to reduce Government spending…

    And to deal with the deficit…

    Have maintained the international credibility of the UK…

    And shown that as a country we can pay our way in the world.

    We’ve all worked so hard to create this recovery…

    We must now work equally hard, to avoid putting it at risk.

    And an obvious – and increasingly imminent – threat to our collective prosperity is the referendum on Scottish independence.

    Those who propose independence would have us – Scotland – separate from the UK.

    So after we’ve demonstrated the importance of strong UK-wide support to our financial sector…

    …after we’ve seen the benefits and resilience of the strength of our currency, the UK pound…

    …and just as we’re starting to witness a recovery that the government wants to see shared through the whole UK…

    …we would walk away.

    We have to make sure that the people of Scotland have access to all the information they need…

    To make the right decision next September.

    I want to pay tribute to ICAS, for their influential role in this debate…

    And I’d like to thank you for engaging in the discussion…

    Especially with your pensions paper…

    Which provided a very important angle on a very important issue…

    And really changed the terms of the debate.

    As I’m sure many of you in this room will know…

    The UK government have been publishing papers to inform the debate – like yours – throughout the year…

    And our papers too, have highlighted some of the challenges and risks that independence would present, on issues like…

    Security…

    And defence…

    And the success of the financial sector north of the border.

    We’ve got further papers coming up.

    But the issue I’d like to return to briefly this evening…

    Is our study of the currency options in an independent Scotland.

    Just to warn you the last time I spoke in public about this paper was a 40 minute lecture at the University of Stirling!

    But I’ll try to be slightly more succinct here!

    It’s not clear to me that a currency union would be in the interest of Scotland or the UK.

    I look at this issue from 2 perspectives.

    The first is as a passionate Scot who wants the best for the people of Scotland.

    But I also look at this in a hard headed way as a Cabinet Minister in the UK’s economic and finance Ministry.

    The lessons learned from the Eurozone have been clear.

    That while such arrangements can appear successful in a period of stability and growth…

    They can lead to brutal readjustments in times of economic stress and uncertainty.

    No one should think that because we see the signs of recovery…

    That we’ll forget the lessons of the crisis.

    No one should assume that a strengthening UK economy increases the likelihood of a currency union between an independent Scotland and the continuing UK.

    It doesn’t because the fundamental problems remain.

    An independent Scotland would be very different to Scotland as it is today – fully integrated into the UK economy.

    Just consider the disproportionate impact that a collapse in oil prices would have.

    If markets sensed that monetary policy – set by the Bank of England – no longer suited Scotland’s circumstances…

    They might start to doubt Scotland’s commitment to any such currency union.

    Financial market speculation could lead to capital flight and higher interest rates…

    And ultimately, if those markets weren’t calmed…

    We could exit the currency union, adopt our own currency in a time of crisis.

    Don’t think that wouldn’t or couldn’t happen to us…

    It was only twenty years ago that we fell out of the ERM.

    The euro area is moving towards greater political and fiscal integration in response to the crisis…

    But – in the event of independence…

    Rather than seeing greater integration…

    Scotland and the continuing UK would be moving in the opposite direction…

    Would this be a credible basis for a currency union?

    So-called “sterlingisation” is what Montenegro does with the Euro.

    Literally importing the currency of a foreign country – in this case the UK pound.

    There are a very few examples where countries have made such an arrangement work…

    The most famous is probably Panama, where they use the US dollar.

    But any historians in the room will know what happened in the 1690s…

    The last time Scotland looked towards Panama for its economic future.

    More fundamentally, adopting another currency like this would be a mortal threat to Scotland’s financial services sector.

    This isn’t a situation where we can be wise after the event.

    Where people can realise the impact of their decision, and rescind their vote.

    The referendum won’t be like a general election, where if you don’t like the government that’s been elected you’ll get another go in five years.

    If Scotland leaves the UK there will be no going back.

    It is absolutely clear to me that the only way for Scotland to keep the pound as it is now…

    …is for Scotland to stay in the UK.

    Anything else is wishful thinking at best.

    As one of the Scottish members of the UK government…

    Let me say this clearly.

    It would be very foolish for anyone to vote for an independent Scotland, on the basis that they will get to keep the pound.

    The truth is that a currency union may not be in the interests of either the continuing UK or of Scotland…

    It is highly unlikely in practise that a currency union could be made to work…

    And it is therefore highly unlikely that a currency union would be agreed.

    Now, I plan on unashamedly using every opportunity I have over the next year…

    Be they meetings or speeches or TV appearances…

    Weddings, christenings, plane journeys – where you have a captive audience!

    To talk about the issue of independence.

    Because this is – quite simply – the biggest choice our country will ever take…

    And as such we all have a responsibility to make sure that the Scottish people have as much access…

    To the information…

    And the arguments…

    As possible.

    So I thank you – again – for your influential involvement in the debate so far…

    I hope that you will all remain involved in the debate…

    As we move towards this huge decision.

    And I’ll look forward to hearing all of your questions

    And – no doubt – seeing you politely decline the seat next to me on flights!

    Thank you.

  • Danny Alexander – 2013 Speech at the Housing Market Intelligence Conference

    Below is the text of the speech made by the Chief Secretary to the Treasury, Danny Alexander, to the Housing Market Intelligence Conference on 9th October 2013.

     

    dalexander

     

    Thank you Mike [Quinton].

    I’m very pleased to be here this morning.

    I’m told by my office that I accepted the invitation to speak at this event exactly five months ago…

    So it’s rather serendipitous that five months later, I’m here the day after the official launch of phase 2 of our Help to Buy scheme.

    As such, I’m sure it won’t surprise you that I plan on spending a little of my time with you this morning discussing the details of, and the rationale for the scheme itself.

    But I also want to talk about why that particular policy and why our actions on home building aren’t just about helping the public to buy homes.

    They’re also about helping sectors like yours to build more homes.

    Help to Buy

    A functioning housing market is vitally important to growth and competitiveness in this country.

    People need homes that are affordable, and within travelling distance of jobs and amenities.

    And the economy needs a housing market that is stable and secure…

    One that supports labour market flexibility and doesn’t undermine financial stability.

    But home ownership – as you will well know – is a deeply personal issue for millions of people, as well as a macroeconomic one.

    People who want a space to bring up their children…

    Or relax at the end of a hard days’ work…

    Or simply a place they can call home.

    And week-in-week-out I have people coming into my constituency surgery…

    And I know my colleagues up and down the country have people coming into their constituency surgeries…

    Who want to follow that dream, and get onto the housing ladder.

    But the thing those constituents keep telling me and other colleagues, is that it’s increasingly hard to get your foot up on the ladder…

    Unless you get a helping hand from your parents.

    And the facts support their suggestions.

    Following the financial crisis, the number of first time buyers fell to its lowest level in 25 years – from an average close to half a million a year in the early 2000s to around 190,000 a year in 2008.

    And since then, that number has risen only slightly – to 220,000 last year.

    One of the reasons for this drop in first time buyers, has been the big drop in high loan to value lending.

    At the beginning of 2008, there were 754 mortgage products available at 95% Loan to Value.

    But by August this year there were just 43 such products.

    And this has meant – in practise – that unless people have managed to secure a big deposit…

    Be that from family, or be that from years of saving…

    It has becoming increasingly difficult for them to buy their first home.

    That is something it is right for us to change.

    It doesn’t seem fair for a couple who earn more than enough to pay off their mortgage debts, to be stuck in rented accommodation while they scrape together enough for a deposit.

    Especially if the amount required for a deposit is sneaking higher and higher every year.

    Of course, there have been some vocal critics of the scheme, who have been suggesting that there is a housing bubble in our country.

    But – I agree with what Stewart said – the facts suggest otherwise.

    Nominal house prices remain below their peak in all regions other than London and the South East.

    And according to Halifax, UK house prices are, on average, around 15% down on their 2007 level.

    Yes, annual house price inflation is 3.3%, but if we take London and the South East out of the equation that figure falls to 0.8%.

    I think commentators and journalists – and even perhaps my fellow MPs – can sometimes forget that there is life beyond Central London.

    The Financial Policy Committee of the Bank of England noted last month that – and I quote – “activity in the housing market and loan-to-value ratios on new mortgage lending remained below their historic averages.”

    In fact, relative to earnings, average house prices across the UK are now around the same level as they were ten years ago.

    So – at this moment – I don’t see any evidence of a housing bubble across the country.

    But if the Financial Policy Committee disagree – and if they think that there is danger of overheating the market – then they will alert us.

    And we will listen to their advice.

    Because this policy isn’t about creating a new volatility.

    It is about creating a new opportunity, for tens of thousands of potential home owners.

    One of the reasons I believe our action to support home buyers is sustainable, is because of the practical steps we’ve been taking to increase housing supply.

    Help to Build

    The Affordable Homes Programme – funded by £4.5 billion of public investment over the current Spending Review period – is on track to deliver 170,000 homes by March 2015…

    Over half of those have been completed already.

    And as part of our recent Spending Round, I announced that a further £3.3 billion will be invested in the programme in the next spending period…

    Which will deliver 165,000 further homes by March 2018 – an average of 55,000 affordable homes a year.

    More than in any year under our predecessors…

    And the most for twenty years.

    I was grateful for Stewart’s comments on Help to Buy, and glad reservations are above the levels expected.

    I’m also grateful for the industry’s help in our work.

    Where you – as an industry – have alerted us to problems…

    To the things that have been preventing you from building…

    Or causing delays to your projects…

    We’ve done our best, and we will continue to do our best – to fix them.

    You told us that it was hard to access funding, or debt at reasonable prices.

    So we’re using our financial muscle to lever in private investment through our Housing Guarantee scheme.

    Those guarantees – that have a value up to £10 billion – have already seen a strong level of interest from housing associations across the UK, so I’d urge you to get in quick if you want to apply.

    And our £1 billion Build to Rent fund will provide further support for new high-quality rented homes that meet peoples’ needs.

    We also announced the new Affordable Rent to Buy scheme.

    This is a £400 million programme that will provide funding for new build homes to be let to tenants at affordable rents for a fixed period…

    And at the end of this period the sitting tenant will get first option to buy the home and achieve their aspiration of home ownership.

    We are going to set out more details on this in December, when we publish the framework for our next Affordable Homes Programme, so I’d urge too, you all to keep an eye out for that.

    You told us that a web of red tape and planning constraints was holding you back, so we:

    Introduced a new planning framework, with a clear presumption in favour of sustainable development.

    And condensed over a thousand pages of planning guidance into a clear 50 page guide.

    As Stewart said, our changes are making a real difference – planning approvals rose to 89% in the year to June 2013.

    That’s the highest level for 13 years.

    Where you’ve told us that progress has stalled, we’ve stepped in to provide support.

    So our Large Sites programme has unlocked 11 major housing schemes which will deliver up to 69,000 new homes.

    And our £570 million Get Britain Building programme has already helped to get over 11,000 starts on site in the short term.

    And you told us that lack of access to mortgages was preventing you from having the confidence to build.

    So we’ve taken steps through Help To Buy to remedy that.

    I think it’s also important to note that by committing to invest heavily, over a long period of time, in our transport infrastructure – especially our major road and rail projects – we will open up new development opportunities for you.

    Next to our newly electrified rail lines…

    Or near the stations served by HS2 and Crossrail…

    Or close to our newly widened motorways.

    But our work won’t stop.

    We know that we have to keep finding new and innovative ways to unlock investment, and to keep new houses being built.

    And I’ll welcome any challenges from this organisation, and everyone here.

    Right to Contest

    You’ve told us that another factor holding back new house building has been land supply.

    And – again – this is something the government is acting on.

    Back in 2011, we set ourselves the ambitious goal of releasing land capacity for 100 000 homes by 2015, and we’ve made good progress.

    We’ve already released land with capacity for 58,000 homes…

    But we recognise that we need to do more, to ensure that land is used properly.

    Too often we see that land that could be used for housing or for business – even for recreation – that is instead left for the grass to grow, and indeed sometimes for wildlife to move in.

    And far too often for my liking, that neglected, or underused land is government owned – be that at a local or a national level.

    In fact, independent estimates suggest that the public sector holds around 40% of developable sites and around 27% of brownfield land suitable for housing.

    And I believe that we should make that land available.

    After all, we need to remember that we – as government – are the custodian of the taxpayers’ assets.

    And so when we no longer need those assets – or when we’re not putting them to good public use – we should be prepared to sell them back at a fair price.

    We certainly shouldn’t act as some kind of compulsive hoarder of land.

    It is for that reason, that I can tell you today, that next month will see launch our new Right to Contest scheme.

    Under current law, members of the public have the right to challenge Local Authorities and government departments to release land that is vacant or underused.

    But Right to Contest will expand this even further, so that if there is any land owned by central government departments that members of the public – or your organisations – think you can make better use of, then you can challenge us to release it, even if it is currently in use.

    If ministers are convinced that the site can be used in a more economically valuable way – for business, for homebuilding – then we will sell that land on the open market…

    And we will use the proceeds from the sale to pay down our debt, and to invest in our economy.

    We’re also undertaking a new strategic land review, which will build on this right and invite input from industry and Local Authorities to help identify where further land can be made surplus or redundant and sold to support construction and local growth.

    Conclusion

    So we will continue to listen, and continue to take action – where we can – to support house building.

    First, by ensuring that more people can afford to buy a home, and the Help to Buy scheme makes that a much greater possibility for tens of thousands of individuals.

    And second, by building more homes, and – again – the Help to Buy scheme, alongside many other policies, will help support the construction sector to deliver more affordable housing.

    And I hope that – through all of this – together we will build the new homes that our country needs…

    Because that is essential to achieving our objective of a stronger economy in a fairer society, where everyone has the chance to get on in life.

  • Danny Alexander – 2013 Speech at the Scottish Productive Ageing summit

    Below is the text of the speech made by the Chief Secretary to the Treasury, Danny Alexander, to the Scottish Productive Ageing Summit held on 3rd October 2013.

     

    dalexander

    Thanks Richard.

    I was especially keen to come and speak at your conference today…

    Because the subject you’re discussing – productive ageing – is a huge issue for this government.

    And I also think – unless we take the right decisions in this area now – it will become one of the biggest challenges facing our country in the future.

    Why important?

    So why do I place such emphasis on this?

    Since I joined the Treasury one of our biggest goals has been to secure our country’s long term economic future.

    That’s why we’re reducing the deficit, to make sure that our grandchildren won’t have to pay off this generation’s debts.

    And that’s why we’re investing in our infrastructure, so that the next generation have the best possible transport and digital networks to support future economic growth.

    But if we really want to secure the long term economic stability of the UK, one of our key challenges will be to keep control of the dependency ratio.

    Which in plain English – as most of you will know – is the number of dependent people not of working age, relative to the number of working-age.

    To do that, we have to ensure that our older people can be as productive as possible.

    Because – over the longer term – any significant increase in that dependency ratio would place a greater tax burden on everyone of working age…

    And result in a smaller working population, paying for an expanding support system.

    Just to illustrate the scale of the challenge facing here…

    The OBR’s projections suggest that public expenditure on older people is set to rise by nearly 4 ½ per cent of GDP between 2016 and 2060.

    That’s an increase of £66bn in today’s terms.

    And the figures here in Scotland are even more profound.

    Scotland

    The Scottish government’s own research shows that this nation could see a 50% increase in number of people over the age of sixty through the next twenty years.

    But despite that research, that same Scottish government concocted a statistical mirage recently to suggest that – somehow – the pension costs of an independent Scotland would be lower than the rest of the UK.

    They did this by fiddling the figures and pretending that teenagers are now pensioners.

    According to independent forecasts, by the year 2060, each pensioner in Scotland will be supported by just 1.9 people of working age, compared to 2.2 in the rest of the UK.

    This is the key dependency ratio when it comes to assessing the cost of pensions.

    But in their paper, the Scottish government used a dependency ratio that included those under 16, as well as pensioners.

    So – because the rest of the UK has a higher number of children – they decreed that Scotland would have a lower cost of pensions.

    And based on those rather suspect figures, they released a paper that suggested they may not increase the state pension age if the ‘yes’ campaign won the referendum.

    Not only is that maths highly questionable.

    But a two year delay in increasing the state pension age could cost an independent Scotland £1.4bn.

    And by 2030, it could mean 30 000 fewer people in employment…

    And a reduction in GDP of over £1bn a year.

    It also strikes me that the implication that when people hit 65 they want to put their feet up is misleading.

    That isn’t what I see either here in Scotland, nor south of the border.

    Argument

    That’s why this conference, and the work that so many people here are doing, is so important.

    We need to turn that argument – and that perception – around.

    And – at the risk of going a bit JFK – we need to look not at what our older generations take from society…

    But what they contribute to society.

    There is – as you will well know – a whole host of evidence out there about the advantages older 65s offer in the workplace:

    McDonalds report a 20% higher performance in their outlets where workers over 60 are employed…

    B&Q report that absenteeism is 39 per cent lower among their older workers…

    and Hertfordshire County Council found that 65 year olds were their most engaged workforce group.

    So this age group can offer a huge amount for individual businesses.

    In fact, if we look at things on a larger scale.

    Studies show that if everyone worked just one year longer, we could see real GDP increase by around 1 per cent.

    That’s the equivalent of £14bn for the UK economy every year.

    And that’s something it would be foolish for any Treasury Minister to overlook.

    Of course, it’s worth saying at this juncture that this isn’t about trying to force retirees back to work.

    Where people have worked hard, and saved wisely, and want to relax into retirement they should have every right to do so.

    And the changes that my colleague Steve Webb – the Minister for Pensions – has overseen on auto enrolment will make it much easier for people to start saving for and planning for their retirement.

    But where our older generations want to remain in the workplace…

    And want to continue to support their families, and contribute to our economy…

    Then we need to make that not only possible, but also much easier.

    The government has taken a number of steps towards doing just that.

    What is the government doing?

    First, we’re bringing forward the increase in the state pension age.

    Back in 1981, a man retiring at 65 typically had about 14 years of retirement; today it is around 21 years.

    A woman retiring at 60 in 1981 would have had about 22 years of retirement – today it is around 29 years.

    Now I for one am, and I’m sure everyone in this room is, delighted that people are living longer!

    But we have to take account of that increased life expectancy in the State Pension Age…

    Which will now rise to 66 by the year 2020 – six years earlier than previously planned.

    And – should the current legislation go through – it will rise again, to 67 by the year 2028.

    I hope everyone here will agree that this is a sensible step in recognising an ageing population, and encouraging people to remain in the workplace.

    The second strand is our work – led by the Department for Work and Pensions – to increase the participation of our older generations in the labour market.

    As part of this, DWP have launched an Age Positive Initiative to give guidance and case studies to employers and businesses…

    They’ve launched a sector initiative to drive forward changes in the employment and retention of older workers…

    And they’re also working with expert organisations through the Age Action Alliance Healthy Workplaces Group, to help employers more effectively manage the health of an ageing workforce.

    The third – and I think the most important – change that the government is making…

    Is removing some of the ageist provisions that already existed in UK law.

    This Tuesday marked the two year anniversary of our phasing out of the default retirement age.

    Meaning that most people can now work for as long as they want to, and that they can’t be discriminated against for taking that decision.

    In that same year – 2011 – we also removed the effective requirement to annuitise by 75.

    Which has ensured that individuals now have increased flexibility over their retirement age, and increased choice over purchasing a retirement income product.

    Those actions…

    – on increasing the state pension age…

    – on helping employers to recruit and retain older workers…

    – and on removing ageism from the system…

    Add up – I hope – to a sensible set of policies that not only recognise the need to reduce our dependency ratio, but also recognise the economic contribution that our older citizens can make.

    Civic Society

    So far I have focused entirely on the economic contribution.

    But I think it’s also vital that we also recognise the massive – and often unsung – contribution that our older generations offer in civic society.

    Here in Scotland for example, 31% of adults volunteer , many of whom are older citizens.

    Very often this is on a local scale…

    I know that most of the charity shops in Inverness couldn’t run without a core team of retired workers.

    But older people also play a key role – often an unpaid role – on charity boards, or as school governors, or in local politics.

    And it’s important that we acknowledge what a huge asset these people are to our country, and the skills and enthusiasm and knowledge they bring to these roles.

    Changing Perceptions

    But as I said earlier, I think if there’s one big battle we’ve got to fight here, it’s a battle of perceptions.

    It’s true that – very often – society places an awful lot of emphasis on the young.

    And sometimes this is a good thing…

    We need to keep producing the business leaders and the civic leaders of the future.

    But we should also shine more of a light on the crucial role our older generations can play.

    We’re in a country which is ruled by an 87 year old.

    There’s a member of staff in my office still mourning the fact that a 71 year old is no longer in charge of Man United!

    There are two goals that have driven everything the government has done.

    And they are…

    Building a stronger economy; and

    Building a fairer society.

    I firmly believe, that if we can make the best possible use of our ageing population…

    If we can ensure that they remain in the work place, rather than being ousted by nervous employers and outdated legislation…

    If we can celebrate what they contribute, rather than what they consume…

    And if we can base our decisions on the pension age around long term economic stability, rather than short term politics…

    Then those older generations can play a key role in building that stronger economy…

    And in making our society fairer too.

    Thank you for listening.

  • Danny Alexander – 2013 Speech to Liberal Democrat Conference

    Below is the text of the speech made by the the Chief Secretary to the Treasury, Danny Alexander, to the Liberal Democrat Conference in Glasgow on 17th September 2013.

     

    Conference, it’s great to have you here in Scotland. In Glasgow or, as we like to call it in Inverness, ‘the deep south.’

    This great city has many claims to fame: its industrial heritage, culture, football, it’s even the home of the new Doctor Who. So, let take me you back in time. It’s spring 2010. We’re in the depths of the economic storm. Greeks rioting on our TV screens.

    Labour had dug a gigantic hole of debt – the bankers had pushed us in. We were forecast to have the largest deficit in the EU. The polls had closed; we were in the uncharted waters of a hung Parliament. Action was needed. And as a Party, we stepped up.

    Colleagues, just think if we’d acted differently. A minority government. Weak. Unstable. Unable to take decisions. And at the mercy of factions and extremists.

    We would likely have seen another General Election within months.

    A toxic mix of political and economic uncertainty. The hardships inflicted on other economies could so easily have happened here.

    Yes, it has been tough, but those nightmare scenarios did not happen. They did not happen for one reason only.

    Because of us. The Liberal Democrats. Because of our decision to ensure we had a stable government with a strong Liberal voice,

    Able to act decisively. We didn’t duck the challenge.

    We rose to it. There were plenty of people who didn’t think we were up to it. When I first became the Chief Secretary, there were even some people who questioned my, how should I put this, my employment record.

    Clearly they hadn’t looked closely enough at my CV. You see, as a teenager I worked in the Tomdoun hotel in Glengarry. I washed plates in the kitchen, I polished pint glasses in the bar, I even cleaned the toilets. I basically spent most of my teenage years cleaning up other peoples’ mess. Perfect work experience for an aspiring Chief Secretary.

    But with every step towards economic recovery we take, the party that caused the mess, the Labour Party, become even less credible.

    Ed Balls bet the house on a failing economy. He banked on a double dip that never happened. He predicted a triple dip that never came.

    And now even his closest colleagues admit he is a busted flush.

    The Labour Party has opposed every single decision we’ve made.

    That was until Ed Balls declared that the Labour party would adopt a new found “iron discipline” in public spending.

    In fact, so strong is that commitment that the two Eds have managed to limit themselves to a meagre £45bn of extra spending commitments. To be fair, once you’ve left the next generation with a debt of £828bn to pay off. Rising at the rate of £3 billion a week,

    Without any plan to deal with it, what’s another £45bn between friends? They derailed the economy. And if they had the chance, they’d do it all over again. The last thing Britain needs is a Labour majority. Conference, I was going to read you a list of barmy right wing Tory ideas that we’ve stopped in government.

    But it’s so long I don’t have time, and after Nick’s appearance yesterday, I’m worried about Justine McGuiness cutting me off.

    But I can’t resist just two. Two Tory ideas that put jobs at risk.

    First, some Tories believe that the best way to help businesses hire someone is to make it easier to fire someone.

    They believe that people that work hard, do their job day in day out,

    Let’s call them ‘strivers’. Should be allowed to be fired at the will of the employer. Well conference, let me tell you this – it will never happen. Not while there are Liberal Democrats around the Cabinet table.

    And then there’s Europe. For many Conservatives, the EU is the bogeyman responsible for every wrong. But for 3.5m people in Britain, it’s the reason they have a job. That’s 3.5m jobs that some Tories want to put at risk by leaving the European Union.

    They should know, you can’t win the global race, unless you’re part of a strong team.

    The last thing Britain needs is a Conservative majority. But the Conservatives aren’t the only ones wanting to break up a union, whatever the costs.

    As a Scot, I believe that being part of the United Kingdom offers Scotland huge advantages in the 21st century. I believe the best choice is for us to stick with a family of nations in which we have thrived and prospered. To grow together, not break apart.

    In the end, nationalism is all about building barriers between peoples, whatever the cost. Liberalism is about knocking those barriers down.

    Today’s National Institute report shows that with Scotland as part of the UK, interest rates are lower and taxes are lower. That’s the value of the United Kingdom.

    Another credible, independent, factual analysis that backs the case for our United Kingdom. So our job, from now until the day of the referendum, is to prove that “Better Together” isn’t just a slogan. It’s the truth. Tens of thousands of jobs in Scotland depend on us winning that fight. For the sake of our country, our children, and our grandchildren, we cannot, must not and will not lose.

    We’ve seen the economy through its darkest hour, by ensuring that the Coalition’s economic plan is pragmatic. When the eurozone crisis was raging. When our growth forecasts were going backwards

    Siren voices on the right called for us to respond by cutting further and faster. It was the Liberal Democrats who ensured the coalition remained anchored in the centre ground.

    There is still a long way to go, but our stronger economy in a fairer society is beginning to take shape. We are rebuilding an economy that is sustainable, balanced and resilient. And we are making progress. Activity in the manufacturing sector has reached a two-and-a-half-year high, in construction a five-year high and in the services industry a six-year high.

    Business confidence is at its highest level in six years. British businesses have created an extra 1.4m jobs in the private sector, supported by the decisions this Government has taken.

    We have the lowest number of people claiming unemployment benefit in four years. A record number of women in work. A higher rate of employment than the US.

    The highest number of people in work. Ever. Labour’s failure to regulate the banks meant that they had to spend billions of pounds of your money to bail them out. We’re fixing the banks and the economy is on the mend. So last night following advice from the Treasury we decided to start to get your money back.

    The first sale of Lloyds’ shares, at above the price Labour paid, is an important milestone. And in future sales we will look for ways in which the British public to get involved. Because we are mending the economy, the tax payer is at last getting their money back.

    The recovery is under way. Much more needs to be done to secure it.

    And we won’t flinch from our task. Anyone who claims the better economic news is all down to the Conservatives is just plain wrong. The decisions we have implemented in government, decisions you have taken in this hall. The brighter future that lies ahead – it’s only there because of us. And we should shout it from the rooftops.

    We still have work to do to finish the job. That’s not a task than can be entrusted to either of the other two parties. I say to the British people, if you want that job finished right – with balance, fairness, and resolve – you need the Liberal Democrats to do it.

    We’ve taken tough decisions to get the deficit under control. And, yes, there will be more in the next Parliament. It will be another five years shaped by the necessity of fiscal restraint. But by the middle of the next Parliament we will have eliminated the structural deficit.

    That doesn’t mean the country can then go back to bad old habits. There’s no spending bonanza round the corner. Our nation’s debt will need to be reduced. It wouldn’t be fair to pass it on to future generations. The pressures of an ageing and growing population will have to be paid for. Conference, when those difficult decisions need to be made, the British people now know that they can trust the Liberal Democrats to make them.

    We’ve delivered long-held commitments too. This year, for the first time, the UK will deliver our long-held commitment to spend 0.7% of our nation’s wealth on international aid. Making a real difference to lives all over the world. Four weeks ago I met a young girl who told me how much she was enjoying school, and about her ambition to be a lawyer. Nothing extraordinary about that, you might think, but I met this girl in Kabul.

    She is one of around two million Afghan girls who, thanks to the bravery of our armed forces and our international aid commitment, is now attending school on a regular basis. I also had the privilege of meeting an extraordinary group of serving men and women in our armed forces in Helmand, whose skill and bravery is making that change possible.

    So, I hope you will join me in paying tribute to our armed forces in Afghanistan and across the rest of the world. As we look to the next Parliament, the tax policy we agreed yesterday puts us in a strong position to tackle the remaining deficit fairly. By committing to raise taxes on the very wealthy, through the mansion tax, through restricting pension tax relief, through increasing capital gains tax rates further, Liberal Democrats will ensure that those who have the most will continue to contribute the most.

    These taxes on the very wealthy will be one of our central promises for the next Parliament. Making sure they can’t avoid their taxes is a job we are getting on with right now.

    Benjamin Franklin said: “Nothing is certain except death and taxes.

    And a conference announcement from Danny Alexander on tax avoidance”.

    Ok, maybe he didn’t say that last bit. But conference, I make no apology for going after tax dodgers. Thanks to our efforts, by 2015 we will be clawing back an extra £10bn a year.

    New investment, new specialist units, new tax rules announced from this podium are now closing the net on the immoral minority who believe paying the proper amount of tax just isn’t for them. But we must do more. We are cutting corporation tax to encourage firms to invest, not to give the wealthy a way to avoid the 45p tax rate.

    So when the vast majority of people in an industry are finding ways to exploit that difference, and that industry is the preserve of the very wealthy, I have no hesitation in acting. So I can announce today that following a brief consultation we will be closing the loophole that allows private equity shareholders to siphon money out of their firms while dodging the intended income tax.

    And it’s why I can also announce that we will also be closing the loophole that allows partners in partnership firms to structure their staff arrangements so that they avoid paying the correct amount of income tax. It’s wrong, it’s unfair, and it’s got to stop and with Liberal Democrats in government, it will.

    Conference, the pressures on household budgets in this country are real. Liberal Democrats are doing all we can to help. We have introduced 15 hours of free childcare for all three- and four-year-olds, and this month introduced it for the poorest 40% of two-year-olds too.

    Next year we will legislate for tax free childcare worth £1,200 for every eligible child. Unlike tax breaks for marriage, that’s a fair way to help families. We have frozen council tax for every year of this Parliament. Our triple lock is protecting the value of the basic state pension.

    We have scrapped Labour’s fuel duty rises. So thanks to us petrol is now 13p a litre cheaper than it would have been. 18p a litre if you live on a remote island. Saving every business and family in the country money. And helping literally to keep the wheels of the economy turning. But there is more to be done.

    In January we will launch the next phase of Help to Buy. Too many young people aspiring to get on in life are stuck. They earn enough to repay a mortgage, but don’t have the funds for a large deposit. It is right that the government should step in to help them. And it is also right that we need to build more homes, including affordable homes.

    Over the last decade rents have risen twice as fast as wages, stretching family budgets. But some landlords still failed to pay the right tax due on the rents they receive. I’m talking about landlords who own more than one property, who rent to students, people with holiday lets and those who let houses in multiple occupations.

    And it adds up to a staggering £500m owing to the taxman. And we want it back. So we’re launching a campaign with a simple message for the rogue minority of landlords. Pay up or face the consequences.

    In my three-and-a-half years in the Treasury, tackling avoidance has been one of my obsessions. But my true passion has been delivering our tax promise to Britain’s working people.

    It was Mr Gladstone, whose portrait hangs on the wall of my office, who said; “The idea of abolishing income tax is highly attractive.”

    Now, conference, we don’t go that far. But we have abolished it for nearly 3m low income workers.

    What’s more, we have given 25m working people the biggest tax cut in a generation. This would have been a big deal in times of plenty.

    To have achieved it now, in these difficult times is extraordinary. Practical help for millions of working people – Liberal Democrats, we made it happen. And conference, yesterday, we committed to cutting the tax paid by ordinary workers even further.

    So you don’t pay any income tax until you earn more than a full time salary on the minimum wage. £700 a year back in the pockets of 25m working people – that’s our record of action. Our promise of more – another £500 off your tax bill, if you put the Liberal Democrats back in government next time.

    Conference, Liberal Democrats in Government has already helped businesses create more than 1m jobs, and now we’re working to help them to create a million more. That’s why this April, every business and charity will have their National Insurance cut through our £2,000 Employment Allowance. That’s enough money for a small business to employ four adults.

    Or ten 18-20-year-olds on the National Minimum Wage. Without paying any employer national insurance at all. Real, tangible help for every small business in the country. At its heart, the next general election will be about who the British public trust to deliver a stronger economy. And who they trust to deliver a fairer society.

    Because the benefits of a stronger economy must be shared. Shared in every corner of the United Kingdom. Shared across all the people of Britain. ‘The economy’ is not some abstract concept. It’s about people. It’s about their jobs, their aspirations and their hopes.

    Only the Liberal Democrats can deliver a stronger economy in a fairer society so that everyone can get on in life. The last thing Britain needs is a Labour or Conservative majority. Labour can’t be trusted with the economy. The Tories can’t be trusted to create a fair society.

    So if you’re looking for work and want a Government that will help you, if you have a job, but want security in your job, if you want to expand your business and employ more people, then there is one party that is on your side, The Liberal Democrats.