BBC On The Record - Broadcast: 01.10.00

Interview: DAVID WILLETTS MP, Shadow Social Security Secretary.

Can the Conservative Party promise tax cuts and still convince voters that they care about public services.



JOHN HUMPHRYS: David Willetts, if it's true that you haven't yet done enough to be sure of winning the next General Election - and I'd guess you'd agree that that probably is true broadly - then what are you have got to do is broaden your appeal to potential Tory voters isn't it. DAVID WILLETTS: We've certainly got to show that we don't just have robust policies on Europe and robust policies on tax and the economy but that we are also tackling the social problems that affect this country and you will hear a lot about that over the days of our Conference. We will talking about pensioners, we will be talking about the Health Service, we will be talking about raising standards in schools, yes and we need to develop the strong positions that people recognise in some areas and make clear that we've got policies across the whole waterfront. HUMPHRYS: But the worry for you is that they will look at what you have said about spending, about public spending, see that you are going to spend less than a Labour government would spend and therefore conclude that there will be cuts in public services, bound to be compared with what a Labour government would spend, because I know you will spend more but you are not going to spend as much as a Labour government would. WILLETTS: We are going to spend more and we are going to spend more within the growth of the economy and every elector is entitled to expect of their ministers and their government that they're sufficiently competent to deliver high quality Health Service and high quality education without having to take an increasing share of the total national income. We will spend more but we won't spend more than the rate of growth of the economy and I think Labour have made a big mistake getting into this argument and I was amazed by what Margaret Beckett was saying earlier, they are saying that from now until kingdom come they are going to have public spending growing more than the economy and therefore taxes going up indefinitely. You've just seen a taxpayers' revolt.. HUMPHRYS: ..not quite what she said, it must be said.. WILLETTS: ..but that's a consequence of what they are committed to. They are saying they have got to have public spending growing steadily, more rapidly than the economy. HUMPHRYS: But you talked there about high quality health, which one would expect you to do, you talked about high quality education which one would expect you to do. Now you are committed to matching Labour's spending on health, you are not committed to matching Labour's spending on education which makes people think, well they are not that serious then about education are they, not one of their big priorities. WILLETTS: But William Hague the other day, only on Wednesday, was in Birmingham, visiting an inner city comprehensive school with Theresa May, explaining how our education policies would mean more money directly getting to the school and the head teachers and the teachers are fed up with the red tape and the instructions from David Blunkett and with too much money being withheld for special schemes. That money instead isn't going to get through to help individual pupils and individual schools and that means that individual schools will be better off under our plans. HUMPHRYS: That may be true in some cases clearly, if it actually works, but the fact is if you say we'll match their spending on health but we will not match their spending on education, people are bound to think that that - education - is a lower priority than health, bound to. I mean there is no other conclusion. WILLETTS: Well I think the conclusion they can draw from our policies on education elsewhere is that we care a lot about raising educational standards in this country.. HUMPHRYS: Not enough to say we'll match Labour's spending. WILLETTS: Well, when Michael Portillo is Chancellor, as I hope and believe he will be, he will be looking across the waterfront to ensure that we have the right public spending policies that backup our priorities and schools are certainly going to be a priority but he will indeed be looking for areas where Labour are wasting money and spending in inefficiently and badly. In my area of social security we have identified savings. I think the New Deal is a complete disaster. The New Deal is not helping unemployed people into work, that's an area where we can save money. There are areas were we can save money without the core public services that people care about being affected and I think that's what the electorate expect of their politicians. HUMPHRYS: They expect you, if you say that education is our priority, which you've always done in the past, they expect you to say we will spend - as you have already made a commitment for health, they expect you to make precisely the same commitment for education and if you don't they are entitled to assume that you will therefore spend less on education than on health. WILLETTS: Yes but you see the difference is that on education we have got a policy that involves changing radically a funding formula for schools so that more money goes to schools. What our education policies do deliver is more money for the individual school and that's what teachers and head teachers care about. And we have also identified elsewhere significant savings. HUMPHRYS: Can I offer you one possible explanation as to why you made the commitment on health and you have not made the same on education.. WILLETTS: ..I'll be fascinated John... HUMPHRYS: ..well good, it's this. Health was in the headlines for a very long time, NHS in crisis, the papers were absolutely jammed packed full of it and you said to yourselves, as good politicians, public concern about this, we'll jump on that bandwagon. We haven't had the same....it's the bandwagon question, you jumped on it because you said this is what people are really worried about and of course when people are losing relatives in conditions that maybe shouldn't have happened, very emotive, very very powerful political issue. Not the same sort of thing with education, yes long-term of course, you saw the bandwagon, you jumped on it. WILLETTS: Can I say on this bandwagon question, having sat in William Hague's Shadow Cabinet for quite a while now, we've had deep and important discussions, not just on health and education, we discussed fuel duty back at the time of the budget and said at the time of the budget, long before these protests, we will vote against these increases in fuel duty, I've been working on pensions reform, how we can offer a better deal for current pensioners for a long time in advance of the pensioner protest about seventy-five pence. What does happen, it's true, is that when these issues get onto the headlines and into the public consciousness, then there is attention to our policies, but it's not the case that we sort of suddenly think, oh we'd better have a policy on this. I can assure you and if you look at the record you will find we already had clear and effective policies and on pensioners we had a very clear policy on pensioners and now it's becoming.... HUMPHRYS: ...what you are doing, you're lumping all the money that Labour is already giving to the poorest pensioners, money incidentally that you didn't give when you were in power, I mean this is the important point. You see the poorest pensioners are - the point that Margaret Beckett made- are a lot better off because of what Labour did, you didn't do when you were in power and now you're saying we're going to give them a lot more money actually, it isn't a lot more money, it might only be a few pence, forty-three pence I believe in the case of many on the basic state pension. So when you work it out... WILLETTS Well, you say ours is a gimmick. First of all our is getting rid of the gimmicks. One of the reasons why we've been listening to pensioners and acting on what they've told us is they don't want all these complicated gimmicks. They want money in the basic state pension, and that's what we're offering them, and even if there were not a single extra penny going to pensioners ours would still be the right policy and a better policy, because they want the money as part of their contributory pension. There is actually three-hundred-and twenty million pounds extra going to pensioners, and that's very important because it means that we can say to all pensioners that they'll be better off under us by varying amounts because the schemes that Labour have brought in are so complicated. HUMPHRYS: But sometimes only pence, I mean even less than Gordon Brown's seventy-five pence - let's be honest about it.. WILLETTS: But this is a real increase, this is an improvement in living standards on top of inflation. But what we've also announced today and what we can say today is that if the up-rating is not two pounds and three pounds which is what the inflation forecast has currently been but if the up-rating is not two pounds and three pounds, but if the up-rating in November is more than that, we will implement that up-rating, we'll accept that up-rating and we will still do our reform package on top, and that means that pensioners will be better off under Conservatives and they'll have a better more honest, more straightforward way of receiving their pension under us. HUMPHRYS: But again people, and the point that Margaret Beckett made again, are entitled to judge you on your record, and you did not do what the Labour government has done, which is increased the poorest pensioners' income year on year, on year, on year. WILLETTS: Well, you see there is a myth here. I mean I've been reading in the papers all week Labour ministers going round saying of course we've been putting all this extra money into the poorest pensioners. It simply ain't true.. HUMPHRYS: ...Minimum Income Guarantee not true... WILLETTS: ..well that is what was Income Support in our day and which rose in real terms in value in our day. HUMPHRYS: Not as much as it's risen under the Labour Government.. WILLETTS: The main way they've spent money is on these complicated special schemes like the winter fuel payment which are not targeted on the poorest pensioners, and those are the schemes that we're instead going to consolidate into the basic state pension, and indeed that three-hundred and twenty-million pounds of extra money is particularly going to go to the pensioners aged over seventy-five who tend to be the poorest pensioners. So actually what we're proposing is better targeted on poverty amongst pensions from the measures that it replaces, and I'm very proud of that package. HUMPHRYS: Your policies for pensions in the future, young people today who are going to be drawing their pensions in thirty years' time or whatever it happens to be relies very much on them as it were going private, and if the stock market does well they will do very well, but that's going to increase suspicion isn't it that you don't really like state provision. I mean it's a point that Damian Green kept making during that film that you're kind of, that you appear to be unenthusiastic about it. You've got to be - he used the word enthusiastic - you've got to be enthusiastic about it, and he used another word - grudging, that was the word that I wrote down. You sounded grudging about your whole attitude to state provision. WILLETTS: Well, I think you'll have heard that what I was saying for current pensioners was anything but grudging. What we're talking about for current pensioners is something that listening to pensioners, they have told us they want and we're strongly committed to it, and for the future we're offering younger workers an option. We're saying that if you want to do this we will enable you to build up a real fund. HUMPHRYS: You want them to do that don't you. I mean that is what you want them to do. WILLETTS: We're going to be very careful,. We're not saying this is compulsory, we're saying this is simply an extra freedom which we're offering people, anybody who wants to stick with the basic state pension can do so and of course we've got a policy for pensioners, current pensioners which will ensure that they will get a substantial increase in the value of the state pension. So this is freedom, but freedom without any losers. HUMPHRYS: In the very broadest sense you're taking a bit of a gamble with this election strategy aren't you. You're banking on the fact that people say yes, of course we like loads of public spending, but actually when it comes to them going into the polling booth they refer tax cuts, and you're banking on that aren't you? WILLETTS: No, what you're seeing at the moment and I think that's the fascination of Labour's Conference last week as against our conference coming up - what you saw at Labour's Conference was Labour retreating to their core, more old style socialism, we even had Tony Blair wearing a red tie, and what more significant indication can you have than that. And what you'll see at our conference is Conservative social policies on health, on schools, on pensions now, on pensions in the future which will show that we're the party that is reaching out to middle Britain in the way that Tony Blair has failed to do. HUMPHRYS: David Willetts, thanks very much indeed for coming here. WILLETTS: Thank you.
NB. This transcript was typed from a transcription unit recording and not copied from an original script. Because of the possibility of mis-hearing and the difficulty, in some cases, of identifying individual speakers, the BBC cannot vouch for its accuracy.