Briefing from the Prime Minister’s Official Spokesman on: Prime Minister’s speech to the EU Council, Turkey and Tax Credits/Overpayments.
Prime Minister’s Speech to EU Council
Asked what the Prime Minister’s speech to the EU Council tomorrow in Brussels might contain, the Prime Minister’s Official Spokesman (PMOS) said the Prime Minister would be setting out his vision for how we looked forward in Europe. The Prime Minister wanted the reality of what we were trying to achieve in the UK set out, which was not a purely market Europe vision, but rather a balance of social and market Europe. What was necessary was that Europe faced up to the challenge and the opportunity.
Asked if the Prime Minister would refer directly to the CAP, the PMOS said the Prime Minister would refer to his view that the European budget should more accurately reflect the needs of Europe now, as it met the challenge of globalisation, rather than that of Europe thirty or forty years ago.
Asked if the Prime Minister yesterday had made his position more "explicit" regarding the rebate and its negotiability, the PMOS replied: no. The Prime Minister did not say anything yesterday that he had not said on Friday night in Brussels. Therefore, it had been our position that the rebate was wholly justified as long as the budget remained as it was. If the budget changed, the case for the rebate changed with it.
Put to him that President Chirac had accused Britain of intransigence and President Barosso said "we could not go back negotiating things we’d already agreed", and was there any comment, the PMOS said it was not intransigence if we were saying we were prepared to put the rebate on the table if there was a guarantee of a process regarding a new budget. The PMOS asked: was it right that we should not be able to change the budget to more accurately reflect the needs of Europe today until 2014?
Turkey
Put to the PMOS that President Barosso had said that there would be pressure when Turkey came into the EU and that the date of its accession would be "very much open ended", the PMOS replied that our commitment was to start negotiations with Turkey. We had made no secret that we wanted to see that process move forward as quickly as possible, and we believed that enlargement was an advantage for Europe as a whole, and that process should therefore continue. The PMOS said enlargement was an issue which people wanted to see happening in the proper way, and that way was to make sure that the necessary investment would bring the accession countries up to the standard of the rest of the EU because that would result in a virtuous circle, as the whole of the EU would become more prosperous as a result.
Tax Credits/Overpayments
Put to him that the Government said any overpayments in tax credits due to computer errors would be written off, what would happen about the overpayments that occurred for other reasons, the PMOS replied that the system for paying back was laid down, and we had said that where there had been error, that would be written off. With regards to other payments, the Paymaster General outlined in the May statement various measures, one of which put the emphasis on communicating to claimants and the need to let us know when the circumstances improved. What was also announced was an increased liaison with voluntary groups who could help those who were vulnerable. The PMOS said people had to remember that a balance had to be struck here between on the one hand, allowing help to those who need it, and on the other hand a recognition that we were dealing with tax payers’ money. There was also a case that we had always made it clear that it was the duty for all those who receive a tax credit to let the authorities know if circumstances changed.
Put to the PMOS that the system "was designed to self-destruct", the PMOS said that the fact that over six million families and 10 million children had benefited from tax credits and the vast majority had not experienced any problems with their claims or payments. They also had an unprecedented take-up, with an estimated eighty per cent of eligible families claiming Child Tax Credit in the first year compared to just fifty seven per cent for Family Credit in its first year.
Asked if it was worth the Government reviewing such cases that would take a long time to resolve, the PMOS said there was a judgment to be made about tax payers’ money.
Asked if it would help to raise the tax thresholds, so that people on lower levels would not have to claim tax credit at all, the PMOS replied it was traditional and wise for people in his position not to comment on such matters!
Asked if the Prime Minister still had confidence in the Chancellor as he "was Mr. Big on this one", the PMOS said the Prime Minister continued to believe that his Chancellor was a huge asset to this country.
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