Comparison of Divisions: Opposition Day — [1st Allotted Day] — Savers — 21 Jan 2009 at 18:49 with Division No. 104 on 29 Apr 2009 at 15:49

I beg to move,

That this House recognises that the reduction in interest rates since October 2008 has been a necessary policy response to the recession, justified by the dramatic reversal of inflationary pressures; believes that the role of Government in a recession is to support those most affected in the short term, while strengthening the economy for the recovery; notes that lower income savers have suffered significant losses as a result of interest rate reductions, and are likely to have a high marginal propensity to spend any increase in post-tax income; further notes that older savers, in particular, are a group who have acted responsibly during the so-called age of irresponsibility, and should be rewarded rather than penalised for their thrift; acknowledges the decline in the savings ratio from 9.9 per cent. to 1.8 per cent. since the second quarter of 1997; believes that more needs to be done to promote a culture of saving during the period of recovery and end Britain's addiction to debt; and calls upon the Government, in the next Budget, to cut taxes for savers by reducing the starting rate and basic rate of tax on savings to zero, paid for by reducing the real growth rate of Government spending in 2009-10, as the Government has already committed to do in 2010-11.

I beg to move an amendment, to leave out from "House" to the end of the Question and add:

"recognises the effects the global financial instability is having across the world and on the UK economy; notes that, as a result of Government action on financial stability, no individual depositor in a UK financial institution has lost savings; notes that the cut in value added tax, increased child benefit and £60 payments to all pensioners are helping families and businesses across the UK; further notes that 60 per cent. of pensioners pay no tax at all; believes savings are important in providing people with independence and security throughout their lives; welcomes cross-party support for the Saving Gateway Accounts Bill to help those of working age on low income; believes that the Saving Gateway will build on the successful pilots since 2002 to create savings accounts with the Government matching each pound saved with a contribution; notes that around eight million people on benefits and tax credits will be eligible for this incentive to save; further recognises the successful role that Individual Savings Accounts have played over the last decade with over 18 million people, including one in five people from low-income groups, choosing this method to save tax-free; welcomes the fact that four million children now have child trust funds and millions more will benefit in future; and notes that the Government contribution to child trust funds increases to £500 both at birth and age seven for lower income families."

The House having divided: Ayes 162, Noes 364.

The majority of MPs voted in favour of the motion:^[1]

• This House
• regrets the Government's recent statement^[2] outlining the eligibility criteria for Gurkhas to reside in the United Kingdom;
• recognises the contribution the Gurkhas have made to the safety and freedom of the United Kingdom for the past 200 years;
• notes that more Gurkhas have laid down their lives for the United Kingdom than are estimated to want to live here;
• believes that Gurkhas who retired before 1997 should be treated fairly and in the same way as those who have retired since;
• is concerned that the Government's new guidelines will permit only a small minority of Gurkhas and their families to settle whilst preventing the vast majority;
• further believes that people who are prepared to fight and die for the United Kingdom should be entitled to live in the country; and
• calls upon the Government to withdraw its new guidelines immediately and bring forward revised proposals that extend an equal right of residence to all Gurkhas.

As a consequence, the alternative Government motion, which read:^[3]

• This House
• recognises that this Government is the only one since the Second World War to allow Gurkhas and their families settlement rights to the United Kingdom;
• notes that in 2004 the Government permitted settlement rights to Gurkhas discharged since 1997, following the transfer of the Brigade HQ from Hong Kong to the United Kingdom;
• further notes that under these rules around 6,000 Gurkhas and family members have been welcomed to the UK;
• acknowledges that the court judgement of September 2008 determined that the 1997 cut-off date was fair and rational, while seeking clarification of the criteria for settlement rights for those who retired before 1997;
• further notes that on 24 April the Government published new and more generous guidelines for the settlement applications of Gurkhas who retired before 1997;
• supports this revised guidance, which will make around 10,000 Gurkhas and family members eligible to settle in the UK;
• further notes that the Government undertakes actively to inform those who may be eligible in Nepal of these changes and to review the impact of the new guidance within 12 months;
• further notes that the contribution Gurkhas have made is already recognised by pensions paid to around 25,000 Gurkhas or their widows in Nepal that allow for a good standard of living there; and
• further notes that in the year 2000 Gurkha pensions were doubled and that, earlier in April 2009, in addition to an inflationary uplift of 14 per cent., those over 80 years old received a 20 per cent. increase in their pension.

... was never voted upon.

Although this extremely rare Government defeat in an opposition day motion is not binding (has no legal force)^[4] a Government minister made a statement later in the day to bring "forward the date for the determination of the outstanding applications to the end of May."^[5]

• [1] Christopher Huhne MP, House of Commons, 29 April 2009
• [2] Phil Woollas MP, Written Ministerial Statement, 29 April 2009
• [3] Phil Woolas MP, House of Commons, 29 April 2009
• [4] Home Secretary Jacqui Smith blamed for humiliating Gurkhas defeat in the Commons, Daily Mail, 30 April 2009
• [5] Phil Woolas MP, House of Commons, 29 April 2009