Rolling coverage of all the day’s political developments as they happen, including George Osborne standing in for David Cameron at PMQs and nominations closing for the Labour deputy leadershipWage growth highest in real terms since October 2007Stella Creasy makes it on to the ballot for Labour deputy leadership 12.39pm BST Sir George Howarth, a Conservative, praises Osborne for his long-term economic plan. He urges Osborne to spend 2% of GDP on defence. Defence of the realm should be the number one priority of the government, he says.Osborne says the government will set out its plans at the spending review. 12.34pm BST Labour’s Jim Dowd asks about the way writers are losing out from the calculation of public lending right because so many libraries are run by volunteers.Osborne says he is happy to look at this issue. 12.33pm BST Osborne says, after 32 minutes, there has been not a single question from Labour on jobs. 12.32pm BST Osborne says tackling the problem of the radicalisation of young people is not something that will be solved easily, or perhaps even in this parliament. It requires parties to work together. 12.29pm BST Labour’s Judith Cummins asks what the government is doing to tackle knife crimes in schools.Osborne says teachers have been given powers to search bags. But if more can be done in the light of the lessons learnt from the attack on a teacher in Bradford, it will be done. 12.25pm BST Andrew Tyrie, a Conservative, says today’s election for select committee chairs are a success for parliament as a whole. (There is cheering, because Tyrie has been re-elected unopposed as chair of the Treasury committee.) Will David Cameron appear before the liaison committee more than three times a year?Osborne says he will pass the message on. 12.23pm BST Labour’s Jess Phillips asks for an assurance that women living in refugees will not be included in housing benefit cuts.Osborne says the government made it clear, when it published its housing benefit plans, that vulnerable people, like abused women, would be protected. 12.21pm BST The Green’s Caroline Lucas says there is a mass climate change lobby at Westminster today. Should the parliamentary pension fund divest from fossil fuels?Osborne says what happens to that pension fund is “way above my pay grade”. But Britain will play its full part in setting climate change targets at the Paris talks later this year. It should be done in the cheapest possible way for consumers. 12.19pm BST Labour’s Geraint Davies asks if waste water from fracking will be properly treated so it is safe to drink again.Osborne says proper standards will apply. But we should pursue fracking, he says. He does not want to be part of a country that sees economic activity happening elsewhere. 12.18pm BST Richard Harrington, a Conservative, asks about apprenticeships.Osborne says Harrington is the apprenticeship adviser to the prime minister. It’s an important job, he says. 12.17pm BST Labour’s David Lammy says the number of reported rapes has risen by 68% in the last 10 years in London. Will the government give the police more resources?Osborne says the police are focusing more on these heinous crimes. He is prepared to consider extra requests for resources. 12.15pm BST The SNP’s Angus Robertson asks if it is true that the Chilcot report has been delayed until next year.Osborne says the Chilcot inquiry is independent. But he says people are running out of patience. 12.13pm BST Osborne says unemployment is down again, employment is up, and wages are growing faster than before the great recession. 12.12pm BST Benn asks what expectations the government has for talks about refugees in Geneva.Osborne says Britain can be proud of its aid spending. 12.09pm BST Benn asks if training is being provided to bodies that need to apply these counter-terrorism moves.Yes, says Osborne, it is. He says he hopes Labour will support the extremism bill. 12.07pm BST Hilary Benn congratulates Osborne on being first secretary of state. He asks what the government is doing to stop young people travelling abroad to join Islamic State (Isis).Osborne congratulates Benn on speaking for his party. His father would be proud, he says. He says the Tories are glad there is no Benn in the Labour leadership contest, but there is a Bennite. 12.04pm BST Nigel Huddleston, a Conservative, says the government has given freedom to pensioners to spend their money. Will Osborne make sure the industry gives people access to their money?Osborne says some firms are not doing their part. The government is considering a cap on charges. The Financial Conduct Authority has been asked to investigate. 12.02pm BST Labour’s Heidi Alexander says the construction of socially-rented homes has fallen to a 20-year low. But more landlords are getting housing benefit. Does George Osborne understand the connection?Osborne says the government built more council housing in the last five years than Labour did in 13 years. He says the economic plan is working. 12.00pm BST George Osborne is about to take PMQs. 11.59am BST According to Chuka Umunna, Angela Eagle and Ben Bradshaw are on the ballot too.All remaining @UKLabour deputy leadership candidates are now on the ballot after @rushanaraali's withdrawal - big thanks to @rushanaraali! 11.55am BST Ivan Lewis nominated Stella Creasy for the Labour leadership.Nominated @stellacreasy to ensure she's on ballot. Impossible to justify denying members chance to see her ability to bring politics alive.David Lammy is Creasy's 34th nomination. 11.51am BST Stella Creasy is on the ballot for the Labour deputy leadership.Stella Creasy is on the ballot with 35. 11.43am BST Chuka Umumna has just nominated Stella Creasy.Just nominated @stellacreasy for deputy leader after @RushanaraAli withdrew. @UKLabour needs as many candidates on the ballot as possCreasey will now go over the threshold and possible Eagle and Bradshaw now that Ali withdraws. This is about the Labour deputy leader race. 11.41am BST Rushanara Ali pulls out. Chuka Umunna has pulled out. Barring a Rachel Dolezal move from Tom Watson, it's an all-white field. 11.40am BST Rushanara Ali has withdrawn from the Labour leadership contest, Stephen Bush reports. That means her 24 votes are up for grabs.Rushanara Ali has withdrawn! 11.31am BST Here is the top line from the Number 10 lobby briefing.Downing Street spokesperson says David Cameron is "stepping up" preparations for a possible Greek exit from the euro zone 11.25am BST Angela Eagle has got another nomination.Daniel Zeichner has nominated Angela Eagle. Creasy 30, Eagle 26, Bradshaw 25, Ali 24. http://t.co/PgnUYqvgjm 11.17am BST Here are the unemployment figures by region.Region - total unemployed - change on previous quarter - rate as percentage 11.09am BST Here is some Twitter reaction to the earnings figures.From Newsnight’s economics correspondent Duncan WeldonEmployment rate plateauing at record highs but shift within that away from self employment/part-time to regular employment & full-time work.This shift to more full time employee jobs & away from involuntary part-time & self employment is probably pushing average wages up.At the moment the UK has decent real wage growth & still seems to be lacking decent productivity growth. That can't last forever.Private sector driving pay growth - up 3.3%. Public sector 0.3%, or 1.3% excluding publicly-owned banks: http://t.co/dCrHcYiZbJThe divergence will make public spending cuts more difficult https://t.co/AoKfUyW1FD 10.59am BST Here is Diane Abbott tweeting about nominating Stella Creasy.Just nominated Stella Creasy for deputy leader. Important to have the widest possible debate pic.twitter.com/Q9wHry3DJR 10.58am BST Stella Creasy has got two more nominations, according to the New Statesman’s Stephen Bush. She is now just five MPs short of getting her name on the ballot.Madeleine Moon is backing Stella Creasy for deputy. She requires a further six names. #labourleadershipMy MP @HackneyAbbott is nominating Stella Creasy. She now needs just five names. http://t.co/PgnUYqvgjm 10.57am BST Here is Frances O’Grady, the TUC general secretary, on the unemployment and earnings figures.Although today’s improvements are welcome, there is still a long way to go for youth unemployment and underemployment. Real wage growth remains too reliant on low inflation, and even if prices remain exceptionally low we are facing a lost decade on pay growth.The weaknesses in the labour market that remain behind the headlines should not be swept under the carpet. The government must set clear goals this parliament to bring down youth unemployment and underemployment, and ensure that everyone who needs work has access to a secure and fairly paid job. 10.54am BST There’s no news yet as to whether Stella Creasy will make the Labour deputy leadership ballot, although, on Twitter, her supporters are speaking out.This is from Dan Jarvis MP.There will be a lot of very unhappy #Labour members today if @stellacreasy is not on Dep Ldr ballot #stella4deputy pic.twitter.com/Habyz3rufCAh come on Labour MPs. It'll just look silly if @stellacreasy isn't on the ballot paperTo be able to get @jeremycorbyn on the leadership ballot but not @stellacreasy on the dep leadership would say all the wrong things. 10.45am BST The Resolution Foundation, the low-pay thinktank, has put out a news release saying that ultra-low inflation is responsible for the wage growth we are seeing today and that this may not last long. Here’s an extract.Strengthening pay and ultra-low inflation mean that real wages are now rising more quickly in real-terms than before the financial crisis. But this rebound may prove short-lived as inflation begins to pick up, the Resolution Foundation said today, in response to the latest ONS labour market figures.Year-on-year growth in regular pay of 2.7 per cent, combined with inflation of -0.1 per cent, means real earnings growth increased to 2.8 per cent in the three months to April 2015. Since August 2002 this rate of growth has only been exceeded once – in September 2007. Real growth averaged 2.2 per cent over the pre-crisis (2001-2007) period. 10.28am BST Here is Stephen Timms, Labour’s acting shadow work and pensions secretary (because Rachel Reeves is on maternity leave) on the unemployment figures.The fall in overall unemployment is welcome, but with more than 740,000 young people unemployed it’s clear the government needs to do far more to give young people the chance to earn a living.Ministers are failing to ensure young people get the best start in life. Last year the number of under 25-year-olds starting an apprenticeship fell. It’s time for ministers to give young people the world-class apprenticeships and training they need to succeed in life. 10.25am BST In its news release, the Department for Work and Pensions has highlighted other “good news” in the employment figures, beyond the fall in unemployment and the increase in wage growth. (See 9.53am.) Here are some of the points they highlight. 10.09am BST Here is James Sproule, chief economist at the Institute of Directors, on the unemployment and wages figures. (See 9.53am.)With real wages growing and unemployment continuing to fall, today’s figures indicate the UK economy is well along the road of recovery. Falling energy prices and low inflation have eased the pressure on companies and boosted their balance sheets. Many are now able to pass these benefits on to their staff through pay rises and bonuses.During the downturn, businesses made the difficult decision to preserve jobs and asked that employees forsake pay rises. The strength of the recovery proves this was the right choice. Encouragingly, pay rises are being handed out in a manner which is both sustainable and in line with long-term productivity trends. As the labour market continues to tighten and competition for jobs heats up, real wage growth should remain entrenched for some time to come. 10.01am BST Nigel Farage, the Ukip leader, told LBC this morning that, although he was “prepared” to lead the No (to staying in the EU) campaign in the referendum, he thought someone from outside politics should take that role.The role of Ukip, the role of myself will be important. That’s not saying that I have to take the lead. I would be prepared to of course. But I suspect what we will see is somebody coming from completely outside of normal politics, somebody from the world of business or entertainment that hasn’t got any political baggage at all. I think someone like that may well emerge. 9.53am BST Here is the start of the Press Association story about the unemployment figures.Wage rises have reached their highest rate for nearly four years, official figures showed today. Total pay climbed by 2.7% compared with a year earlier in the three months to April, the Office for National Statistics (ONS) said. 9.38am BST Here are the headline unemployment figures. 9.33am BST According to Paddy Power, 90% of the money bet on the Labour deputy leadership in the last week and a half has been on Tom Watson. He is the 4/5 favourite, behind Carline Flint on 7/2, Stella Creasy on 4/1, and Angela Eagle and Rushanara Ali on 10/1. 9.09am BST But, according to the Tory MP Chris Heaton-Harris, there is also a campaign to keep Creasy off the ballot. He tweeted this yesterday.Am watching political machines at work. Govt 1 on the EU Ref Bill, Labour one trying to stop @stellacreasy getting on the Dep Leader ballot. 9.08am BST I guess this counts as a celebrity endorsement for Stella Creasy.MPs still deciding who to vote for as Labour's new deputy - @stellacreasy looks like the future to me. Foe of Wonga, grassroots campaigner.29 MPs still to nominate, a few hours left. Please let these Labour MPs know you want @stellacreasy on the ballot pic.twitter.com/VeB1llh6T2 8.58am BST We’re going to see George Osborne take PMQs for the first time today. In a very good Guardian column, Rafael Behr has an elegant explanation.In the hierarchy of people who matter to David Cameron these days, the entire Labour party sits well below the prime minister of Luxembourg. Since renegotiation of Britain’s EU membership will require unanimous support from 27 other member states, the hostility of a single head of government could sink the whole plan. So instead of taking questions in the House of Commons tomorrow, Cameron is courting Italy’s prime minister Matteo Renzi in the morning, followed by dinner with Xavier Bettel of Luxembourg. Continue reading...
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