Tue, 08 Dec 2009 02:31:05 GMT - Guardian UK News

December 7 session

Government spending cuts

Liam Byrne, the chief secretary to the Treasury, set out plans to save £12bn as part of the effort to slash the public deficit, with senior civil servants facing a pay squeeze. He said spending on consultants and publicity would be slashed, staff would be moved from London to the regions and 123 quangos faced abolition or rationalisation as part of the efficiency drive.

Byrne told MPs there would be new entitlements to high quality public services in health, education and policing. He would cut back on ring-fenced budgets and national targets in the public sector. Byrne said a review of senior public sector pay had been commissioned and until it reported he would personally review any proposals for state salaries topping £150,000.

Philip Hammond, the shadow chief secretary, said the "reheated" policies showed Labour's "failure to get a grip" on public service reform.

NHS IT programme

Andy Burnham, the health secretary, confirmed the government hoped to save £600m by scaling back its multibillion pound NHS IT programme. It would be "pared back" to its core elements but he insisted there was "no intention" of scrapping the entire £12bn system. Andrew Lansley, the shadow health secretary, said ministers had got the scheme "hopelessly wrong" and were, belatedly, putting a stop to this "continuing disaster".

Climate change

Ed Miliband, the energy and climate change secretary, told MPs they should lead by example and not "seek to sow doubt" among the public on climate change. As UN talks kicked off in Copenhagen, Miliband said the science was "unambiguous", adding: "Climate change is real and man-made." Opening the energy bill's second reading debate, he insisted one chain of emails did not undo "decades of climate science".

Royal Bank of Scotland

City Minister Lord Myners accused directors of the Royal Bank of Scotland of being "silly" and "unpatriotic" for apparently threatening to resign in a row over bonuses.

Cluster bombs

New legislation to ban the use and production of cluster bombs will not outlaw banks lending to firms which manufacture the deadly weapons, it emerged. Foreign Office minister Chris Bryant told MPs the government would work to create a voluntary code of conduct to stop the indirect financing of cluster munitions manufacturers, with the threat of further legislation if necessary. The cluster munitions (prohibitions) bill will have its Lords second reading today.

Pre-budget report

Labour-intensive public services such as construction should be protected from spending cuts in Wednesday's pre-budget report, Labour's Kelvin Hopkins (Luton N) urged. He asked front bench colleagues to petition the chancellor, Alistair Darling, not to seek savings in the sector, saying it would provide jobs in the future. Employment minister Jim Knight replied: "We are deep in discussions with the chancellor ... but it's certainly beyond my paygrade to comment at this point on the outcome of those discussions."

Personal accounts pension scheme

Ministers were challenged over the prospect of personal details of millions of British workers being stored overseas. Pensions minister Angela Eagle told MPs concerns over the security of personal data were being "adequately" taken into account. But she refused to say if she would be concerned were information relating to the personal accounts pension scheme kept outside the UK.

Liberal Democrat spokesman Steve Webb had suggested bidders for the "massive" IT system for personal accounts could hold the data abroad.

Wage subsidy scheme

The government was challenged by Labour's Lindsay Hoyle (Chorley) over failure to introduce a wage subsidy scheme to help English businesses through the recession. He said it would "make sense" to support workers before they lost their jobs rather than paying to retrain them afterwards. Knight insisted "decisive steps" had been taken to reduce unemployment which ruled out the need for a wage subsidy.

Confiscation powers against criminals

Ministers were defeated when the Lords objected by 182 to 118 to an extension of confiscation powers against criminals to Transport for London, the Gambling Commission, Vehicle and Operator Services Agency and Intellectual Property Office. Peers backed a resolution from Tory Lord Onslow which "notes with concern" Police Federation chairman Paul McKeever's criticisms of the rules. But the "non fatal" resolution does not repeal the Proceeds of Crime Act (references to financial investigators) (amendment) order and ministers are under no obligation to respond.

EU

Lord Pearson of Rannoch used his first Lords intervention since being elected Ukip leader to call for a referendum on membership of the EU, warning there was a "gulf between the political class and the British people". Foreign Office minister Lady Kinnock said his views did not gain "strength or wisdom" through repetition.