House of Commons

Monday 2nd March 2015 Commons Chamber

Monday 2 March 2015

The House met at half-past Two o’clock

Prayers

Monday 2nd March 2015 Commons Chamber

[Mr Speaker in the Chair]

Oral Answers to Questions

Monday 2nd March 2015 Commons Chamber

The Secretary of State was asked—

[John Mann (Bassetlaw) (Lab)]

1. How many academies have reported a decline in exam results in the last year.

[The Secretary of State for Education (Nicky Morgan)]

This year’s key stage 4 results are the first since crucial reforms to our qualification and accountability systems, which were designed to raise the bar for our children, came into force. Overall, the proportion of pupils achieving A* to C grades including English and maths in state schools fell across all types of school. There has been a 71% increase in the number of pupils taking the key academic subjects that will prepare them better for life in modern Britain.

[John Mann]

That was a bit of a non-answer. If an academy is successful, parents are happy and so am I, but what if an academy is getting bad results and is on the way down? What powers are there for local people to enable them to have any influence whatsoever on the future of that academy?

[Nicky Morgan]

I do not think that saying that 71% of pupils are taking the more academic subjects most highly valued by employers and universities could be described as a non-answer. In answer to the hon. Gentleman’s question, I am sure that as the local Member of Parliament he will be working closely with the regional schools commissioner, the head teacher, the teachers and the governors of that school. What we all want at the end of the day is the best possible education for our young people.

[Damian Green (Ashford) (Con)]

I was able to see for myself at Kennington Church of England junior academy on Friday the benefits of academy status in improving a school that has had serious weaknesses in the past. Does the Secretary of State agree that academy status increasingly benefits not just secondary schools but primary schools?

[Nicky Morgan]

I agree very much with my right hon. Friend. He will want to know that the first wave of sponsored primary academies, which opened in September 2012, has seen the proportion of pupils achieving levels 4 and above in reading, writing and maths increase by 9 percentage points, double the rate of improvement in local authority-maintained schools over the same period.

[Mr Geoffrey Robinson (Coventry North West) (Lab)]

The Secretary of State will be aware of the Grace academy in Coventry. She facilitated a meeting with one of her Ministers and we are grateful for that, but she will understand—and I hope will therefore follow it up closely herself—that the proof of the pudding will be in the effective action taken to deal with the situation. We have no indication that it is improving and the career prospects of 1,000 young children are being put at risk.

[Nicky Morgan]

I was pleased to facilitate the hon. Gentleman’s meeting with the Minister in question, one of my excellent team of Ministers. We will of course always maintain a close watch over all academies and their results. He might like to know that secondary converter academies perform well above average, with 64% of pupils achieving five or more good GCSEs in 2014 compared with 54% in local authority schools.

[Andrew Stephenson (Pendle) (Con)]

Late last week, it was announced that Pendle primary academy in Brierfield has been rated as good with outstanding features and outstanding behaviour by Ofsted, a big turnaround for a school deemed to be in need of major improvement just two years ago, before it became an academy. Will my right hon. Friend join me in congratulating the principal, Mrs Burnside, all the staff and the outstanding Nelson and Colne college, which sponsors Pendle primary academy?

[Nicky Morgan]

I thank my hon. Friend for that question. It is an absolute pleasure to congratulate the head teacher, Mrs Burnside, and all the staff, governors and pupils on their hard work in achieving those spectacular results. I greatly enjoyed my recent visit to schools in Pendle.

[Liz McInnes (Heywood and Middleton) (Lab)]

2. What recent assessment she has made of the effect of the cost of child care on the household disposable income of parents with disabled children.

[The Parliamentary Under-Secretary of State for Education (Mr Sam Gyimah)]

This Government have introduced the biggest reforms to special educational needs and disabilities provisions in 30 years, reforms that enjoy cross-party support. Every disabled child, like all other three and four-year-olds, is entitled to a free 15 hours of early education, and the situation is the same for disadvantaged two-year-olds. In addition, when tax-free child care is introduced, parents of disabled children will get double the allowance of other families at £4,000. The disabled child element of universal credit is £4,300, on top of all the other benefits parents of disabled children receive.

[Liz McInnes]

The cross-party parliamentary inquiry into child care for disabled children found that 92% of parents with disabled children reported difficulties in finding suitable child care for their children. As child care costs overall continue to rise, particularly for disabled children, that figure can only continue to grow. What is the Minister doing to ensure sufficient places for disabled children?

[Mr Gyimah]

On the cost of child care in general, let me point out that the Labour party left us with the highest child care costs in the OECD; they went up by 50% when it was in government. This Government have been helping parents with the cost of child care, particular parents with disabled children, whom the hon. Lady mentioned. Local authorities have a legal duty to secure sufficient child care for working parents in their area. As far as free entitlement is concerned, local authorities that set the rate they pay for free entitlement can pay for additional hours, on an hourly basis and tailored to individual children, from the dedicated schools grant.

[Alison McGovern (Wirral South) (Lab)]

The Minister’s words to parents of children with disabilities are just that. Can he explain the reality of the situation for families who have a child with a disability when the proportion of local authorities reporting that they have sufficient places for children with disabilities has fallen by seven points in just one year to only a fifth? That is the reality for parents of children with disabilities. Can he please explain what happened last year?

[Mr Gyimah]

Of course the cost of child care for children with disabilities is high, because the ratios are higher. They often need one-to-one care, and sometimes more. When children have really complex needs, staff need additional training in order to provide that care. The reason tax-free child care has been doubled to £4,000 from the £2,000 for every other family is to give parents the additional financial power they will need to provide more child care. It has also been extended from age 12, so the parent of a disabled child can now access tax-free child care until their child is 17. That also applies to specialist care regulated by the Care Quality Commission.

[Douglas Carswell (Clacton) (UKIP)]

3. If she will undertake a reassessment of the merits of grammar schools.

[The Secretary of State for Education (Nicky Morgan)]

The law prohibits the establishment of new grammar schools, but we fully support the right of all good schools to expand, and that applies to grammar schools too. What is most important is that all children have access to a good local school, and we are committed to delivering that through our academies and free schools programmes.

[Douglas Carswell]

Does the Minister have much sympathy with the argument that academically selective schools in the state sector can enhance social mobility?

[Nicky Morgan]

I know that the hon. Gentleman’s party says that it has a clear policy on grammar schools—that is a relief, because at least it has a clear policy on something. Does he agree with his party’s leader, who said that the party was not going to publish its manifesto until as late as practically possible? May I suggest 8 May?

[Fiona Mactaggart (Slough) (Lab)]

Why is the Secretary of State pursuing a policy that is attacking grammar schools with large sixth forms, which are being underfunded for their A-level provision?

[Nicky Morgan]

I am well aware of that issue, which has been raised in a Westminster Hall debate in recent weeks. We fully support sixth forms and want to see them continue, but the hon. Lady will be aware of the economic condition in which her party left this country.

[Heidi Alexander (Lewisham East) (Lab)]

How can the Secretary of State be so sure that expanding grammar schools will enhance opportunities for our most deprived young people and not just perpetuate and reinforce existing social privileges?

[Nicky Morgan]

The hon. Lady might have misheard my answer to a previous question. This Government are in favour of expanding all good schools. I think that she will want to recognise that we have 1 million more children in good or outstanding schools as a result of this Government’s education policies.

[Charlie Elphicke (Dover) (Con)]

13. May I welcome the Secretary of State’s announcement on extending grammar school provision in Kent? Does she agree that grammar schools are an important part of the diversity in our education system that gives parents the best possible choice of the kind of school that suits their children?

[Nicky Morgan]

I agree with my hon. Friend that parents being able to make the right choice for their child is exactly what we want to see, because they know their child best. I should make it clear that the Department is currently considering the proposals that have been put to us by a school in Kent, and I expect to reach a decision in due course.

[Craig Whittaker (Calder Valley) (Con)]

4. If her Department will publish a ranking of the property data survey programme of participant schools.

[The Minister for Schools (Mr David Laws)]

Through the priority school building programme 2, we have used the property data survey to allocate £2 billion to rebuild and refurbish buildings in the worst conditions at 277 schools across the country. We have no plans to publish a ranking of surveyed schools.

[Craig Whittaker]

The previous Secretary of State said that Calder high school was one of the worst he had seen in England. Similarly, when the Prime Minister came to Todmorden, he pledged money for the rebuilding of Todmorden high school. Despite those assurances, so far neither school has received any money. Will the Minister pledge to do as was initially intended and make transparent the priority listings of all schools surveyed under the property data survey programme so that we can see how robust they are?

[Mr Laws]

I know that my hon. Friend is a champion of the schools in his constituency, including the two that he mentions. In addition to the priority school building programme phase 2 funding, we recently announced £4.2 billion of funding for the improvement and maintenance of school buildings over the next three years, and his local authority is able to draw down on those moneys allocated to its area for the schools that he mentions. On the ranking of schools, we have no plans to publish a ranking list of surveyed schools, which could be misleading without taking into account other information supplied by schools and local authorities with their PSBP 2 bids.

[Kerry McCarthy (Bristol East) (Lab)]

5. What recent discussions she has had with teachers associations and unions on teacher work loads.

[The Minister for Schools (Mr David Laws)]

The Secretary of State and I engaged with teachers associations and unions in the discussions about teacher work loads, most recently through the work load challenge. I welcome their contribution to the debate, including through the programme of talks at the Department for Education.

[Kerry McCarthy]

The Government’s own figures show that the average primary teacher is working 60 hours a week. Teachers in Bristol tell me that their work load is at an unsustainable level and that the accountability system in particular has reached absurd levels and demonstrates a profound lack of trust in teachers. Teachers are too often unsung heroes, under-appreciated and overworked. When is the Minister going to let them just get on and do their job?

[Mr Laws]

The work load burden on teachers, which has been present for some time in this country, including under the Labour Government, is precisely the reason that we established the work load challenge. The hon. Lady will have seen the comprehensive and detailed plan that we published, which we believe will help over time to drive down the unnecessary work load of teachers.

[Kevin Brennan (Cardiff West) (Lab)]

As a former teacher, may I say that teacher work load really matters? The 10% increase that was shown up in the work load survey, which the Minister published only after being hounded for some considerable time by the Opposition, is contributing to low morale and to a looming teacher training and recruitment crisis. The response from the Government that he mentioned has been roundly rejected by teachers, thousands of whom have taken the trouble to tell Ministers of the negative impact of Government policy on teacher work loads. Do we not need a new beginning for teachers, with a Government who take seriously the impact that work load pressures are having on teacher morale and on children’s learning?

[Mr Laws]

I would gently make two points. First, let us look back at some of what has been said by the teacher unions about the Government’s response. The National Association of Head Teachers said that it believes that

“the proposals for better planning and greater notice of changes are a step in the right direction. They could do a great deal to improve the quality of education”.

Secondly, I do not think the Labour party is in any position to give any lectures about Government communications with teachers. After all, the hon. Gentleman’s boss, the shadow Secretary of State, was recently contacted by one parent teacher group to ask about Labour policy and he replied with eight words:

“Stop moaning. Read the speeches. Do some work.”

That was the Labour party’s response—hardly constructive engagement.

[Karen Lumley (Redditch) (Con)]

6. What assessment she has made of recent trends in the number of pupils taking up STEM subjects.

[Heather Wheeler (South Derbyshire) (Con)]

9. What assessment she has made of recent trends in the number of pupils taking up STEM subjects.

[The Minister of State, Department for Education (Mr Nick Gibb)]

Record numbers of students are taking mathematics and the sciences at A-level—15% more students took physics in 2014 than in 2010. Maths is now the single most popular A-level, with an increase of 13% since 2010, but more needs to be done. We need even more young people to take these subjects at A-level. That is why we are supporting the Your Life campaign headed by Edwina Dunn of Dunnhumby, which aims to increase the numbers taking maths and physics A-level by 50% over the next three years.

[Karen Lumley]

When I visit engineering companies in Redditch, I find that one of their main issues is attracting apprenticeships or graduates, especially women. Does my hon. Friend agree that along with the take-up of STEM subjects, we need to encourage students to see that careers in engineering are a great choice for all?

[Mr Gibb]

Indeed. We want all young people to have the right careers advice so that they take informed decisions about their future and so that they are aware of all the options available—including, as my hon. Friend said, apprenticeships—and of the advantages that studying maths and the sciences to A-level can bring.

[Heather Wheeler]

Will my hon. Friend join me in congratulating students from the William Allitt school in my constituency, who have been shortlisted as finalists in the national science and engineering competition, The Big Bang UK young scientists and engineers fair at Birmingham NEC from 11 to 14 March? This is the UK’s biggest celebration of technology, engineering and maths for young people.

[Mr Gibb]

I am pleased to add my congratulations to students from the William Allitt school. The national science and engineering competition, which receives £350,000 of funding from the Government, is an excellent example of a positive initiative that helps to promote and to recognise achievement in STEM subjects. I wish my hon. Friend’s constituents every success in the final stage of the competition, and I look forward to attending the Big Bang fair next week.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

Recent research found that more than a third of schools in Newcastle do not offer triple science at GCSE. Newcastle has a thriving digital and information and communications technology hub, and a history of fantastic scientific achievement such as the recent mitochondrial breakthrough. What is the Minister doing to make sure that every pupil in Newcastle can access triple science if they have the talent to do so?

[Mr Gibb]

I share the hon. Lady’s desire that every school should offer three separate sciences at GCSE; that is very important. That is why the EBacc is such an important measure. As my right hon. Friend the Secretary of State said, we have seen a 70% increase in the numbers taking those core academic subjects, which are vital to keeping opportunities open for young people.

[Bill Esterson (Sefton Central) (Lab)]

The Minister says that he wants more young people to be taking maths and science subjects, but does he acknowledge that there is a chronic shortage of teachers applying for STEM subjects? Why has that happened, and what action are the Government taking to reverse this serious problem for young people and for the wider economy?

[Mr Gibb]

The hon. Gentleman makes a very good point. That is why the Prime Minister recently announced a new £67 million package of measures over the next five years to increase the skills and subject knowledge of 15,000 existing maths and physics teachers and to recruit an additional 2,500 teachers over the course of the next Parliament. As the hon. Gentleman will know, bursaries of up to £25,000 are available to trainee teachers with high degrees in maths and physics. As he will also know, some 17% of teacher trainees now hold a first-class degree and 73% of current trainee teachers hold a 2:1 degree or higher.

[Sir Peter Luff (Mid Worcestershire) (Con)]

The excellent new curriculums for computing and for design and technology can do much to inspire young people to take up STEM subjects, but further to the Minister’s last answer, can he reassure me that we recruit enough teachers to teach these important subjects?

[Mr Gibb]

I can provide my hon. Friend with that reassurance. We are offering generous bursaries, including in computer science, to attract the highest quality graduates into teaching.

[Mr Graham Stuart (Beverley and Holderness) (Con)]

7. What assessment she has made of which of her Department’s policies since May 2010 has been most successful in achieving its original objectives.

[The Secretary of State for Education (Nicky Morgan)]

There have been many outstanding achievements during this Parliament, but I particularly highlight our reforms to raise standards in schools as a key success. This has led to more children than ever before—as I said, almost 1 million pupils—attending a school rated good or outstanding by Ofsted.

[Mr Stuart]

We currently have the fastest expanding economy in the western world, which is obviously extremely welcome, but the improvement in standards in our schools has come about because of recruitment of the best possible graduates into the profession. What more can the Government do to ensure that these graduates come into our schools, particularly those in rural and coastal areas?

[Nicky Morgan]

I entirely agree with my hon. Friend. We now need to see excellent teaching right the way across the system in every school. Every child’s life chances are only as good as the quality of teaching they receive. That is why the Prime Minister recently announced that our manifesto would include a national teaching service to encourage more good teachers to enter the profession and to be represented in all schools right across the country.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

Any reputable organisation evaluating its success employs external consultants or impartial people, or at least consults its consumers. When I go round schools in this country, as I do very regularly, I find a devastated landscape. Does the Secretary of State agree? I find unaccountable schools, a top-down culture, a restricted curriculum, and a very low regard for this Secretary of State.

[Nicky Morgan]

I thank the hon. Gentleman for his most charming remarks, but no, I completely disagree about the landscape that he finds. I find excellent schools up and down the country; brilliant, highly qualified teachers working incredibly hard; rigorous academic standards; and a tough but worthy new curriculum that is introducing subjects such as coding and computing, as we have heard. Now our task is to make sure that excellence is spread right the way across the country.

[Annette Brooke (Mid Dorset and North Poole) (LD)]

School sport partnerships were scrapped very early on in 2010 and have been replaced with various measures, which I am very pleased to welcome. May I have an assurance that something has now been set, that it will continue and that we can build back to where we were with the excellent partnerships?

[Nicky Morgan]

The introduction of the sport premium means that we have given substantial funds directly to heads and teachers to spend in their school. The number of sports and the amount of time that pupils are spending on physical activity are going up each week. The Prime Minister has made a commitment to keep that funding until 2020. On a school visit last week, I saw that a fantastic co-ordinator was being employed to get all the young people moving.

[Tristram Hunt (Stoke-on-Trent Central) (Lab)]

In 2010 the Conservative party manifesto promised to

“close the attainment gap between the richest and poorest”,

so can the Secretary of State tell the House whether, over the past two years, since the roll-out of coalition policy, the attainment gap between pupils on free school meals and their better-off classmates has narrowed or widened?

[Nicky Morgan]

I can say to the hon. Gentleman, without equivocation, that it has narrowed. The 2014 key stage 4 results show that the gap between disadvantaged and other pupils has narrowed by almost 4% since 2012.

[Tristram Hunt]

Oh dear, it is yet another reprimand for the Secretary of State from the UK Statistics Authority, because the attainment gap is widening on her watch. According to Teach First,

“things are getting worse for poorer children, instead of better.”

When it comes to education, at the end of this Parliament this Government have failed. There are more unqualified teachers, failing free schools, chaos and confusion in the school system, falling youth apprenticeships, a teacher recruitment crisis, class sizes rocketing and too many pupils taught in schools that are not judged good. Is that not the reason that, come 8 May, we will have a Labour Government ready to clean up this mess, invest in and reform our schools, and offer every child an outstanding education?

[Nicky Morgan]

It might have helped if the hon. Gentleman could have said any of that with a straight face, but he could not because he knows it is all utter drivel. We see fewer unqualified teachers, more children educated in schools rated good by Ofsted and the gap between disadvantaged and advantaged children falling. As we saw with the Labour party’s tuition fee policy announcement last week, Labour’s education policies are a farce, like scenes from “Nuns on the Run”.

[Caroline Dinenage (Gosport) (Con)]

8. What assessment she has made of the potential benefits to pupils of the expansion of the Troops to Teachers programme.

[The Parliamentary Under-Secretary of State for Education (Mr Edward Timpson)]

Service leavers have a wealth of skills and experiences that are transferable to classrooms, including teamwork, leadership—[Interruption.]

[Mr Speaker]

Order. There is very discordant noise in the Chamber. A very respected Minister, Mr Timpson, is endeavouring to answer a question and I think pupils in the average classroom around the country would behave rather better. I remind the hon. Member for Huddersfield (Mr Sheerman), in all gentleness and charity, that he is something of an elder statesman in this House and we look to him to set an example to other colleagues.

[Mr Timpson]

Thank you, Mr Speaker. Anyone would imagine that there is an election on the horizon.

There are 84 trainees on the Troops to Teachers scheme and the expansion of the programme allows even more talented service leavers to make an important contribution to our children’s education.

[Caroline Dinenage]

My Gosport constituency has very strong links to the armed forces, particularly in Navy engineering. Does my hon. Friend agree that schemes such as Troops for Training can only help to spread expertise to students in my area?

[Mr Timpson]

I absolutely agree. My right hon. Friend the Secretary of State recently visited Bristol to see for herself the latest cohort being trained, and she was hugely impressed by both their calibre and their commitment. Along with my hon. Friend the Member for Gosport (Caroline Dinenage), I strongly encourage schools in Gosport and elsewhere to contact the university of Brighton to secure a trainee for this September and benefit from the next tranche of Troops to Teachers.

[Mr Nigel Evans (Ribble Valley) (Con)]

10. What steps she is taking to encourage pupils to study modern languages.

[The Minister of State, Department for Education (Mr Nick Gibb)]

The new curriculum requires all maintained primary schools to teach a foreign language to pupils from the age of seven. The number of entries for a modern language GCSE has increased by 20% since 2010 due to the introduction of the English baccalaureate performance measure, a major step towards remedying the enormous damage to foreign language teaching in schools caused by the previous Labour Government’s 2004 decision about the curriculum.

[Mr Evans]

“Ya khochu govorit’ svobodno po-russki”, possibly means “I want to speak Russian fluently.” For somebody of my age, it is an ambition I might hope to reach before I die, but youngsters tend to be more adept at learning foreign languages. Could we do more to encourage even more youngsters to learn Russian, Arabic and Mandarin not only to open doors in their minds, but to make their worth even more attractive in the employment market?

[Mr Gibb]

Spasibo, Mr Speaker. The number taking Russian GCSE has increased from 1,500 in 2010-11 to about 2,000 in 2013-14. I agree with my hon. Friend about the importance of languages for the economy, and for learning about other cultures. According to a report by the CBI published in 2014, 65% of businesses say they value foreign language skills, most importantly for building relations with overseas customers.

[Ms Gisela Stuart (Birmingham, Edgbaston) (Lab)]

On the subject of businesses and foreign languages, what work is the Minister doing to get companies more closely involved with secondary schools to make learning foreign languages relevant, and to put the business application and the real-life experience together?

[Mr Gibb]

The hon. Lady makes a very good point. The careers and enterprise company recently announced by my right hon. Friend the Secretary of State is doing precisely that—inspiring schools and young people to engage with business in considering their future careers. The importance of that has been shown by other surveys. The Economist this week points to a 2012 British Chambers of Commerce survey of 8,000 British companies, reporting that 96% of them had no foreign language speakers. In a country like Britain—an international trading nation—that is a disgrace and something we are working hard to remedy.

[Mr David Heath (Somerton and Frome) (LD)]

Are not our horizons still too limited? With the advent of IT and refinements in distance learning, should not any child in any school be able to learn any language?

[Mr Gibb]

I agree with my hon. Friend that that should be possible, and we are doing everything we can to encourage more young people to study a foreign language. The problem is that a decision was taken by the previous Labour Government in 2004 to remove the compulsory nature of taking languages to GCSE, and that has had a devastating effect on the numbers doing so. We have reversed that trend.

[Kelvin Hopkins (Luton North) (Lab)]

11. If she will take steps to promote the establishment of more sixth-form colleges.

[The Minister for Skills and Equalities (Nick Boles)]

We have supported the creation of new sixth-form schools, such as Exeter Mathematics school, the London Academy of Excellence in Newham and Sir Isaac Newton sixth-form school in Norwich, but we do not currently plan to promote the establishment of more sixth-form colleges.

[Kelvin Hopkins]

The Minister will have seen the statistics showing that sixth-form colleges outperform other providers of 16-to-18 education on every measure of academic success and in value for money. Does he not therefore agree that an intelligent Government would seek actively to establish many more sixth-form colleges, instead of allowing their numbers to reduce?

[Nick Boles]

I share the hon. Gentleman’s support for and admiration of the work of sixth-form colleges, which are generally fantastic institutions producing great results, but I disagree with him on this obsession with particular forms and structures. I agree with him that schools that are dedicated to teaching 16 to 19-year-olds in sixth forms do very well, which is why we have supported the creation of so many sixth-form schools, but whether they are schools or colleges is a second-order issue.

[Sir Gerald Howarth (Aldershot) (Con)]

I can assure my hon. Friend that in the Sixth Form college in Farnborough we have one of the finest structures in the country. However, sixth-form colleges are facing a challenge because they are eligible for VAT, unlike sixth forms in mainstream schools. Will my hon. Friend do something to remedy that anomaly because it is really having an effect on not only my sixth-form college but many others around the country?

[Nick Boles]

We absolutely recognise this “anomaly”, as my hon. Friend calls it, which also applies to further education colleges. It goes along with other freedoms that schools and academies do not have—sixth-form colleges have the freedom to borrow in a way that academies do not—but we nevertheless recognise that this issue is of concern to a lot of sixth-form colleges, and we are actively discussing ways in which we might ameliorate it. However, to get rid of the problem entirely would cost many tens of millions of pounds, which would require us to identify savings that we cannot find at the moment.

[Nic Dakin (Scunthorpe) (Lab)]

I understand that the Minister, who recognises this “anomaly”, has in his rather amiable way when visiting sixth-form colleges been encouraging some of them to consider going for academy status. When that happens, however, his noble friend Lord Nash says, “This isn’t on mate”. Which is right? Can colleges go for academy status or not?

[Nick Boles]

Lord Nash and I are not only great friends but we agree entirely on this issue. It is legally possible under existing provisions for a college to convert to academy status, but there are issues around how the VAT will be dealt with, and how any debt that it has already amassed will be dealt with on its balance sheet. Those issues are tricky, but we are looking at them.

[Yvonne Fovargue (Makerfield) (Lab)]

Successive rounds of cuts to sixth-form and further education colleges are having a devastating effect. One principal of a college in the west country—a college recently judged by Ofsted as outstanding and a beacon college—recently told The Times Educational Supplement that

“cuts have taken us to the edge”,

and added that any further cuts would threaten the services the college offers.

Will the Minister commit to Labour’s pledge to protect the education budget in real terms?

[Nick Boles]

I will not commit to a pledge that is as unfunded as every pledge that Labour has made since 2010. Labour Members think that they will pay for all this out of a tax on bankers’ bonuses that has so far been used about 27 times. There was no money left according to the former Chief Secretary to the Treasury, and that is because Labour has absolutely no idea how to run a budget.

[Charlotte Leslie (Bristol North West) (Con)]

12. What support her Department is providing for the establishment of a college of teaching.

[The Secretary of State for Education (Nicky Morgan)]

Nothing in schools matters more than good teaching, and we are proud to have so many dedicated professionals in our classrooms. An independent professional body could play a valuable part in raising the status and standards of teaching, and give teachers vital support. Our consultation, “A world-class teaching profession”, outlined our commitment to offer support to those seeking to establish such a body, independent of Government, and we will publish our response to the consultation shortly.

[Charlotte Leslie]

The Government’s offer of funding to help a college start up is welcome, but can the Secretary of State reassure me that it will come with no strings attached so that teachers themselves can drive what the college is, and that she will not seek to impose things such as teacher licensing schemes top-down, before this fledgling college has even left the nest?

[Nicky Morgan]

If my hon. Friend knows anything about me she will know that I am not in favour of anything that is top-down, and I agree that the proposed body must be established and owned by teachers for teachers. To be successful, a college of teaching must be free from Government control. Our recent consultation made a commitment to offer support—whether financial or otherwise—if that would be helpful, but the independence of the college from Government remains our overriding concern and our support must not compromise that.

[Julie Hilling (Bolton West) (Lab)]

14. What steps she is taking to ease teachers’ work loads.

[The Minister for Schools (Mr David Laws)]

Reducing unnecessary work load is a priority for this Government. In October 2014, we launched the Workload Challenge, asking teachers for views on how to tackle unnecessary work load. On 6 February, we published our response with a comprehensive programme of action.

[Julie Hilling]

Teachers across Bolton West are telling me that they love teaching but are thinking of leaving the profession because they cannot tolerate the work load any longer. Will the Minister set a target for the reduction in work load and limit working hours, rather than just monitoring them?

[Mr Laws]

The risk of that is picking out an arbitrary number, but we are clear that we want to see consequences for the actions we are putting in place, and reduce figures for unnecessary work load. We are commissioning biannual surveys to measure the effectiveness of the policy. I hope that the Labour party will sign up to some of the measures included in the conclusions of the Workload Challenge, including the protocol that would set out minimum lead-in times for significant changes in curriculum qualifications and accountability, which has been very much welcomed by teachers.

[Ian Swales (Redcar) (LD)]

15. How many state secondary schools and colleges in England engage alumni to support students.

[The Minister for Skills and Equalities (Nick Boles)]

We encourage all schools to involve former students in advising young people about career opportunities and the course choices that can lead to them. Future First does excellent work in helping schools to do this.

[Ian Swales]

St Peter’s school in my constituency is in one of the most deprived communities in the country, yet it has produced the current head of performance engineering at the Williams Formula 1 team and the right hon. Member for Tunbridge Wells (Greg Clark). Does the Minister agree that such alumni can play a valuable role in raising aspiration in the next generation?

[Nick Boles]

I agree with my hon. Friend absolutely. It is hard to know who I admire more: my right hon. Friend the Member for Tunbridge Wells or the other gentleman he refers to. One of the key tasks of the new careers company being set up by Christine Hodgson is to help every school in the country to have an enterprise adviser, a current or recently retired local executive, who can help the school and the students identify opportunities in the area for their future career.

[Simon Wright (Norwich South) (LD)]

16. If she will ensure that all children receive age-appropriate sex and relationship education.

[The Minister of State, Department for Education (Mr Nick Gibb)]

Sex and relationship education must be taught in all maintained secondary schools; we believe that most secondary academies and many primary schools also teach it. Any school teaching SRE must have regard to the Secretary of State’s “Sex and Relationship Education Guidance”. The guidance makes it clear that all sex and relationship education should be age-appropriate, and that schools should ensure that young people develop positive values and a moral framework that will guide their decisions, judgments and behaviour.

[Simon Wright]

Will the Minister consider that the ongoing revelations over child sexual exploitation, the explicit content on new technologies widely available to children, and the warnings of the deputy Children’s Commissioner and the Education Committee among others together make an overwhelming case for the urgent introduction of mandatory age-appropriate sex and relationship education, starting at primary school?

[Mr Gibb]

We are considering the report of the Education Committee very carefully and will respond to it in due course. We believe that all schools should teach personal, social, health and economic education and, within that, SRE. Indeed, the introduction to the new national curriculum makes that explicitly clear. What is important is not whether PSHE is statutory, but the quality of the teaching. That is our focus, and we are working with the PSHE Association and other expert bodies to ensure that teachers have the best resources to teach these very sensitive issues.

[Mr Philip Hollobone (Kettering) (Con)]

18. What progress has been made on attracting former members of the armed forces to become teachers.

[The Parliamentary Under-Secretary of State for Education (Mr Edward Timpson)]

There are currently two cohorts of former service leavers on the Troops to Teachers programme, totalling 84 trainees. The university of Brighton is proactively working with the Department for Education and the Ministry of Defence to promote the expansion of the scheme through a targeted marketing and recruitment campaign, including attendance at recruitment fairs and MOD resettlement centres, as well as promotion through a variety of online and other publications.

[Mr Hollobone]

Those who served in Her Majesty’s armed forces represent Britain at its very best. Getting these individuals into our schools needs to be a key priority for any Government. Can the Minister supercharge this policy and put rocket boosters under it so that many more troops are turned into teachers?

[Mr Timpson]

My hon. Friend’s long-standing support for this policy is extremely gratefully received. He will be pleased to hear there has been a huge interest in the latest cohort, which will take up its training in September this year. It is our intention to do what we can to expand the programme in the future for the very good reasons my hon. Friend has given.

[Richard Harrington (Watford) (Con)]

20. If she will encourage and extend the use of the Teach First scheme.

[The Minister of State, Department for Education (Mr Nick Gibb)]

Teach First has made a real difference to the education and life chances of thousands of children in some of the most disadvantaged areas in our country. Since the Government came to office, we have more than doubled the number of trainees on the programme and spread its reach to every region in the country. For 2015-16, we have expanded the programme again. Funding has been allocated for 2,000 trainees, 33% up on last year. More than 50% of the secondary allocation will focus on priority subjects: maths, science, modern languages, computing, and design and technology.

[Richard Harrington]

I thank the Minister for that comprehensive answer. On a recent visit to the absolutely splendid Grove academy in Watford, it was brought to my attention that it can be difficult for the school, and for Watford schools in general, to attract staff because 2 miles down the road, with London weighting as it is, people receive £2,500 a year more for the same job. Given that Watford is demographically and occupationally similar to most London suburbs, will the Minister look at London weighting in this respect, so that Watford jobs become more competitive with London jobs next door?

[Mr Gibb]

My hon. Friend raised these issues when I visited Watford and a number of schools there recently. The pay reforms we have introduced over the last two years have given schools greater flexibility to decide how much they can pay a teacher and how quickly pay progresses. Our reforms are providing schools with the discretion they need to address any school-level recruitment and retention problems they may have. However, as my hon. Friend also knows, decisions about the definitions of inner and outer London and the London fringe area are ultimately a matter for the independent School Teachers Review Body.

[Mr Speaker]

It is good that we have got through all the substantive questions on the Order Paper.

[Sir Bob Russell (Colchester) (LD)]

T1. If she will make a statement on her departmental responsibilities.

[The Secretary of State for Education (Nicky Morgan)]

As this is the last Education Question Time of this Parliament, I thank colleagues in all parts of the House for their questions, though I particularly thank all staff and governors at the thousands of schools up and down this country who work so hard every day to prepare our young people for life in modern Britain.

In this Parliament, the Government have established more than 4,200 academies, 255 free schools, 37 studio schools and 37 university technical colleges. More than 100,000 more six-year-olds are able to read because of our focus on phonics, and we have introduced the pupil premium, worth £2.5 billion this year. Our plan for education is working.

[Sir Bob Russell]

I am grateful to the Secretary of State for that answer, but one thing that the Government have not done is introduce a holistic approach to education for life. If we are talking about positive values and life skills, is it not time that first aid training was made a requirement in the school curriculum?

[Nicky Morgan]

I thank the hon. Gentleman for spotting one of the things that we have not yet achieved in this Parliament. I agree with him that first aid skills are very important, and I was discussing that only this morning with Natasha Jones, who has been named Tesco community mum of the year for setting up a baby resuscitation project. We also welcome the work of expert organisations such as the British Heart Foundation to support schools in this aspect of teaching and we have been working with the Department of Health on helping schools to procure defibrillators at a reduced price.

[Heidi Alexander (Lewisham East) (Lab)]

T7. Today is national secondary offer day, yet 24% of the country’s secondary schools are full or over capacity. Given that this Government have wasted £240 million on free school places in areas without any real need for them, what does the Secretary of State say to parents whose children are being crammed into schools that are over capacity?

[Nicky Morgan]

What I say to the hon. Lady, and therefore to anyone who wants to ask questions about this, is that when her party was in government, it stripped 200,000 places at the time of a baby boom and allowed uncontrolled immigration. At the last national offer day—[Interruption.] I suggest that she waits to find out what the offers are this year, but at the last national offer day, 82.5% of pupils were offered a place at the highest preference school and 95.5% were offered a place at one of the top three; and of course, seven out of 10 free schools have been opened in areas of basic need.

[Charlotte Leslie (Bristol North West) (Con)]

T2. Little Fatima at Fonthill school in Southmead made two years’ reading progress in just 16 weeks thanks to the “Read on. Get on” scheme. What support are the Government giving to reading recovery schemes such as this?

[The Minister of State, Department for Education (Mr Nick Gibb)]

One of the purposes of the phonics check, which we introduced in 2012, is to identify early on those children who are still struggling with the basic reading skill of decoding. We expect schools to focus their resources on helping those children, which is why they retake the check at the end of year 2 to ensure that no child slips through the net. As a result of our policy on reading and the introduction of the phonics check in 2012, 102,000 six-year-olds are today reading more effectively than they would otherwise have done had Labour stayed in office.

[Andrew Gwynne (Denton and Reddish) (Lab)]

Given that two secondary academies in my constituency have recently been judged inadequate by Ofsted—one having previously been judged as outstanding, the other as good—the Secretary of State will understand that many of those parents would like to see her working closely and quickly with those schools to get them back to where they need to be. What action is she going to take to ensure that those children in Stockport and in Tameside receive the life chances they deserve?

[Nicky Morgan]

I entirely agree with the hon. Gentleman that a good education is exactly that: it is all about enhancing the life chances of all the young people at those schools. If he wants to let us have the names of those schools, I am of course happy to follow the issue up with DFE officials and the regional schools commissioner, as well as working with the heads directly.

[Nigel Mills (Amber Valley) (Con)]

T3. On that subject, does the Secretary of State agree that improving the links with local businesses and schools is key? Will she therefore welcome the interest that David Nieper Ltd has shown in sponsoring Alfreton Grange arts college?

[Nicky Morgan]

I entirely agree with my hon. Friend’s points, and I would like to congratulate the company he mentioned on its sponsorship. Professional standards of governance in schools are vital, and we want to make sure that governing boards are focused on recruiting people with the skills for the role. People from business have valuable transferable skills and benefit from board-level experience. I want to see more employers encouraging and supporting their staff to volunteer as governors. This is something I have discussed with the CBI.

[Tristram Hunt (Stoke-on-Trent Central) (Lab)]

Why does the Conservative party not value education? Why is the Secretary of State happy to see her budget slashed under any future Tory Government? Why will she not make a commitment, as the Labour party has done, to protecting the education budget in real terms rather than delivering a 10% cut to schools over the next Parliament?

[Nicky Morgan]

Why will the hon. Gentleman not secure from his party leader a per pupil funding? Under our spending plans, the next Conservative Government will be spending £590 million more on schools than his party will.

[Ian Swales (Redcar) (LD)]

T4. All Durham’s secondary schools were rated good or outstanding in 2013, and there was such a surplus of places that one school closed. That school became the home of the Durham free school, and I noticed that the Secretary of State was in Durham confirming its closure just last week. Why does she think her Department allowed this waste of taxpayers’ money, and what lessons has it learned?

[Nicky Morgan]

I was pleased to meet some of the parents from the Durham free school, and we discussed various interests. I made it clear to them that my Department operates on the basis of putting the interests of children absolutely first. We will of course look at all the lessons to be learned from the way in which the application was processed and considered in the first place. Nevertheless, 24% of open or free schools have already been judged outstanding by Ofsted, and more have been judged as good. This is a successful programme, but there will inevitably be some issues, and we have taken swift action to deal with problems in this case.

[Kate Hoey (Vauxhall) (Lab)]

What help can the Minister give to the Archbishop Sumner primary school—a school in my constituency that has been rated outstanding by Ofsted—which has been trying to become a two-form entry school for some years? Lambeth seems to have taken against that idea, despite it not affecting any of the local schools. Will the Secretary of State get involved in this issue?

[Nicky Morgan]

I thank the hon. Lady for raising the matter with me. I would be happy to take a look. We can take further details, arrange a meeting and work out ways to raise this issue with the local authority. On the basis of previous conversations, I think both she and I want the same thing, which is for all young people to get the best possible education to set them up for life.

[Adam Afriyie (Windsor) (Con)]

We have some of the best schools in the country in my Windsor constituency—and perhaps one or two of them are slightly over-represented here in the House of Commons! I speak, of course, of Windsor Boys’ school. Will the Secretary of State commend Windsor Girls’ school for forming a joint academy status with Windsor Boys’ school?

[Nicky Morgan]

I add my congratulations to the two schools on becoming academies. On this side, we firmly believe that academy status puts power in the hands of heads and teachers who know how best to serve their pupils and give them the best possible start in life.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

Does the Secretary of State agree that all our children should have a full chance of exploiting all their talents in our educational system? If so, why is she cutting further education again when FE is so important to the less privileged in our country? Why has nothing been mentioned in this Question Time about special educational needs or autism or about the fact that so many parents in this country have no chance of help?

[Nicky Morgan]

The hon. Gentleman raised an important point at the end of his question, but to be honest, I am here to answer the questions, not to ask them. It is up to hon. Members to raise the issues, whether they be about special educational needs, autism, disability or any other topic. The Under-Secretary of State for Education, my hon. Friend the Member for Crewe and Nantwich (Mr Timpson), would answer any such questions brilliantly, as he always does. On FE, I have already explained that this Government have had to take difficult financial decisions as a result of the legacy that we inherited. I think that the hon. Gentleman would agree that the decision to prioritise spending on early years and on schools for children up to 16 is right because that will be of most benefit to our young people.

[Mr Nigel Evans (Ribble Valley) (Con)]

T5. We may not have Eton in the Ribble Valley, but all our schools are of an incredibly high standard. To make parental choice effective, we must ensure that parents are not stung when youngsters decide to go past their nearest school to a grammar, a faith-based school or, indeed, a non-faith-based school. They might want to go and learn Russian. Will the Secretary of State ensure that she talks to the Secretary of State for Communities and Local Government so that we make parental choice effective?

[Nicky Morgan]

My hon. Friend has raised this matter before. I know that he has campaigned on it, and that he feels passionately about it. I should be happy to talk to Ministers in the Department for Communities and Local Government. I believe that faith schools play an important role in our education system, and I support them. As my hon. Friend is aware from discussions that we have had, I want to encourage all local authorities to arrange school transport flexibly, creatively and innovatively, and to make the best possible use of any gaps in their existing school bus provision.

[Kelvin Hopkins (Luton North) (Lab)]

I understand that the Minister recently visited Shanghai to look at the education system in China. In this respect, the Chinese are more successful than we are in many ways. What is the key difference that makes China’s socialist state system so much more successful than our system, in terms of classrooms, culture and teaching methods, and what did the Minister learn from that?

[Mr Gibb]

In maths, 15-year-olds in Shanghai are three years ahead of 15-year-olds in this country in the programme for international student assessment tables. We look very carefully at international evidence, which is why we sent 71 teachers to Shanghai to study teaching methods there. Now 30 Shanghai teachers are in 20 primary schools in this country, teaching our teachers how to improve their maths teaching. They have a mastery model. Pupils face the front, learn their tables, concentrate for 35 minutes, and use textbooks. We are learning from the best in the world.

[Mr Speaker]

Order. I feel sure that there will be a full debate on this matter on one of the long summer evenings that lie ahead of us.

[Mr Graham Stuart (Beverley and Holderness) (Con)]

T6. Will the Secretary of State commit himself to maintaining a focus on social justice and rooting for those who do not go to university? Will he reject out of hand a policy that has been described by the New Statesman as “dire”, by Martin Lewis as “financially illiterate”, and by The Times as Labour’s worst policy? Tuition fees cuts amounting to £2.7 billion would subsidise the very richest at a time when we need to do more for the very poorest.

[Nicky Morgan]

My hon. Friend has hit the nail on the head. We are taking money from the welfare budget to pay for apprenticeships that will set our young people up in life, while the Labour party is taking money away from pensioners in order to fund a misguided policy on tuition fees. According to the vice-chancellor of my own university, Loughborough, that policy would make 500 people redundant. Which 500 people in Loughborough does the shadow Secretary of State think should be made redundant?

[Fiona Mactaggart (Slough) (Lab)]

I have had a letter from the head teacher of the excellent Baylis Court secondary school in my constituency, pointing out that the cost of payroll changes involving, for instance, national insurance will be £222,000 next year, without funding. Moreover, the education support grant is to be cut by £53 a head. What difference will that makes to the girls’ learning?

[Nicky Morgan]

As we have seen during the current Parliament, schools have been able to raise standards at a time of straitened budgets. I have every faith in them. I believe that they will continue to raise their standards, and that all the young people in that school will benefit.

[Mike Freer (Finchley and Golders Green) (Con)]

The Secretary of State has been very supportive of the protection of schools against terrorism attacks, and my constituents and I are very grateful for that. Will she update the House on progress in the funding of counter-terrorism measures at independent Jewish schools?

[Nicky Morgan]

My hon. Friend has raised an extremely important point. I do not want any young people to feel frightened of attending school or of their journey to and from school, and, sadly, that applies particularly to members of the Jewish community at present. I have had discussions with a number of Jewish organisations about the funds that are required and the estimates that they have provided.

[Ms Gisela Stuart (Birmingham, Edgbaston) (Lab)]

Given that 30% of Birmingham’s population are under the age of 15, there are enormous pressures on school places, which will continue. However, there is no correlation between teacher training places and demand in regions where that demand will increase. Will the Secretary of State address the problem, and ensure that the availability of teacher training places matches regional demands?

[Nicky Morgan]

That is a very interesting point. I shall need to look into exactly how the teacher supply model is calculated each year, but I can tell the hon. Lady that, during the current Parliament, the Government have invested £5 billion to create new school places, and that, because we continue to recognise that there is pressure on the system, we have announced further funding up to 2021.

[Robert Jenrick (Newark) (Con)]

We were delighted to see the Orchard special school in Newark added to a list of 16 schools in Nottinghamshire to which funding was provided last month for classrooms. Those of us who know the Orchard school believe it may be beyond repair; this school really is in bad condition. Will the Secretary of State agree to review this case and get back to us?

[Nicky Morgan]

I was delighted last month to be able to announce £6 billion of investment in school buildings for school blocks in the worst condition, but of course, sadly, demand always outstrips supply. If my hon. Friend would like to send me further details, I shall ensure that I or one of the Ministers respond, and perhaps meet him to have a chat about it.

[Nic Dakin (Scunthorpe) (Lab)]

I welcome the Secretary of State’s statement that she is against top-down imposition. Will she therefore admit that her predecessor made a huge mistake when he ordered the decoupling of AS and A-levels, and put that right before it is too late?

[Nicky Morgan]

I like the hon. Gentleman very much indeed, but I am afraid I am going to have to disagree with him on this, because the evidence shows that having linear exams, where students have much longer to study the subject, benefits them as they understand the subject in depth. This is an important reform and I wait to see the progress it makes.

[Mr David Heath (Somerton and Frome) (LD)]

This Government have protected school budgets, yet those at the secondary school in my constituency who wrote to me last week say that they are facing a cut of nearly 3% in their funding next year. Is that a result of the long-standing unfair budget formula, is it because of an imbalance between secondary and primary schools, or is it because of decisions taken by Somerset county council locally?

[Nicky Morgan]

I thank the hon. Gentleman for his question. I suspect that it is a combination of factors, and I am sure that Ministers will be happy to look into this further, but he makes an important point about the need to push on with restoring the national fairer funding formula. Too many areas and too many authorities in this country have suffered from funding falling back over many years. We are making progress—small progress—in this Parliament and we hope to make greater progress in the next Parliament in restoring that fairness.

Counter-Terrorism: Conflict Zones

Monday 2nd March 2015 Commons Chamber

15:31

[Yvette Cooper (Normanton, Pontefract and Castleford) (Lab)]

(Urgent Question): To ask the Secretary of State for the Home Department if she will make a statement on the Government’s counter-terrorism policy and implications for individuals travelling to the Iraq/Syria conflict zones.

[The Secretary of State for the Home Department (Mrs Theresa May)]

As the Government have made clear repeatedly, the threat we face from terrorism is grave and is growing. The House will appreciate that I cannot comment on operational matters and individual cases, but the threat level in the United Kingdom, which is set by the independent joint terrorism analysis centre, is at severe. This means that a terrorist attack is highly likely and could occur without warning.

The Government have consistently and emphatically advised against all travel to Syria and parts of Iraq. Anyone who travels to these areas is putting themselves in considerable danger, and the impact that such a decision can have on families and communities can be devastating.

The serious nature of the threat we face is exactly why the Government have been determined to act. We have protected the counter-terrorism policing budget up to and including 2015-16, and increased the budget for the security and intelligence agencies. In addition, we have provided an additional £130 million to strengthen counter-terrorism capabilities and help address the threat from ISIL, and we have taken significant steps to ensure that the police and the security services have the powers and capabilities they need.

Last year, we acted swiftly to protect vital capabilities that allow the police and the security services to investigate serious crime and terrorism and to clarify the law in respect of interception for communications-service providers. This year we have introduced the Counter-Terrorism and Security Act. This has provided the police with a power to seize a passport at the border temporarily, during which time they will be able to investigate the individual concerned—and I can confirm that this power has already been used. It has created a temporary exclusion order that allows for the managed return to the UK of a British citizen suspected of involvement in terrorist activity abroad. It has strengthened the existing terrorism prevention and investigation measures regime so that, among other measures, subjects can be made to relocate to another part of the country, and it has enhanced our border security for aviation, maritime and rail travel, with provisions relating to passenger data, no-fly lists, and security and screening measures.

Since its national roll-out in April 2012, more than 2,000 people have been referred to Channel, the Government’s programme for people vulnerable to being drawn into terrorism, many of whom might have gone on to be radicalised or to fight in Syria. The Counter-Terrorism and Security Act 2015 has now placed Channel on a statutory basis. It has also placed our Prevent work on a statutory basis, which will mean that schools, colleges, universities, prisons, local government and the police will have to have due regard to the need to prevent people from being drawn into terrorism. Already since 2012, local Prevent projects have reached more than 55,000 people and have helped young people and community groups to understand and challenge extremist narratives, including those of ISIL.

In addition to this work, alongside the checks we already conduct on a significant number of passengers who leave the UK, we have committed to reintroducing exit checks, and arrangements to do so will be in place by April 2015. These will extend our ability to identify persons of interest from a security, criminal, immigration or customs perspective. And as the Prime Minister stated last week, the Transport Secretary and I will be working with airlines to put proportionate arrangements in place to ensure that children who are at risk are properly identified and questioned.

The Government are taking robust action, but we have been clear that tackling the extremist threat that we face is not just a job for the Government, the police and the security services; it needs everyone to play their part. It requires educational institutions, social media companies, communities, religious leaders and families to help to protect people vulnerable to radicalisation and to confront this poisonous ideology. If we are to defeat this appalling threat and ideology, we must all work together.

[Yvette Cooper]

An estimated 600 British citizens have now travelled to join the conflict in Syria, from extremists with a terrorist history to 15-year-old schoolgirls. The whole House will share a revulsion at the barbarism of ISIL, a determination to tackle extremism and strong support for the vital and unsung work of the security services and the police to tackle the threat here and abroad. Members on both sides of the House have also recently supported further legislation to tackle the terrorist threat. However, there are specific areas in which we need answers about Government policies and decisions.

First, we need answers on the handling of a west London network of terror suspects. In 2011, court papers described a network including three individuals relocated on control orders, 10 other named individuals and further unnamed individuals based in west London who were

“involved in the provision of funds and equipment”

to terrorism and the

“facilitation of individuals’ travel from the UK”

to join terrorist-related activity.

The Home Secretary’s decision, against advice, to abolish control orders and cancel relocations was implemented in 2012, meaning that no one could then be relocated, despite the continued police view that relocation was one of the best ways to disrupt terrorist networks. One of those who had been relocated absconded in a London black cab; another associate absconded wearing a burqa. Other men from that west London network have been reported in the media as subsequently leaving for Syria and becoming involved in brutal violence. The Home Secretary has finally restored the relocation powers within the past few weeks. Does she believe that her decision to remove those relocation powers made it easier for that west London network to operate, recruit and send people to Syria? Will she now ask the independent terrorism reviewer or the Intelligence and Security Committee to consider the details of that west London network and to assess whether Government policy made it easier for it to operate and harder for the police and the Security Service to disrupt it?

Secondly, we need to know about the Government’s policy to prevent young people and children from travelling to Syria, in the light of the distressing story of three schoolgirls from east London travelling there. I have not had a reply to my letter to the Home Secretary of last Wednesday, so will she tell us now whether the Government had an agreement in place with the airlines to raise alerts over unaccompanied minors travelling on known Syrian routes? If not, why not? And will she put such an agreement in place now? The girls flew out on Tuesday, but they did not leave Istanbul bus station until late Wednesday. It is reported that the police contacted the London embassy on Wednesday, but when were the Istanbul authorities alerted, and when were checks made at the main airports and train and bus stations in that city?

One pupil from Bethnal Green academy is reported to have left for Syria before Christmas, and it is widely known that recruitment is taking place through friendship groups and social media. What training and support was given to the teachers and parents of other children at Bethnal Green academy to prevent further recruitment, grooming and radicalisation? What community-led Prevent programmes is the Home Office currently supporting in Bethnal Green?

When the Home Secretary came to office and changed policy to end relocation orders and to remove community work from Prevent, she claimed that previous policies had failed to tackle extremism and she promised:

“We will not make the same mistakes”.—[Official Report, 7 June 2011; Vol. 529, c. 52.]

We need answers from her now about the mistakes that have been made under this Government, so that we can all work together to strengthen counter-terrorism policy in the face of these serious threats.

[Mrs May]

The shadow Home Secretary has raised a number of serious issues. She asked about Prevent and on that I have to say to her that she needs to stop using the numbers she likes to quote. She tries to compare Prevent before the election with Prevent after the election, but in 2011 we took the very important decision to split work on integration, which is now the sole responsibility of the Department for Communities and Local Government, and Prevent. That was done for very good reasons, and if the right hon. Lady wants to securitise integration work again, I suggest to her that she has not learned from the mistakes made by her Government. I would like her to say, at some stage: whether she supports the changes we have made to Prevent; whether she supports the fact that Prevent now looks at non-violent extremism as well as violent extremism; and whether she supports the changes we have made to make sure that no public money finds its way to extremists, as it did under her Government.

The right hon. Lady made various comments about TPIMs, and has done so outside this Chamber, asking why I did not put certain individuals on TPIMs. I cannot comment on individual cases, but I think she should understand how TPIMs work and how control orders worked. I do not decide to put somebody on a TPIM; the Security Service makes an application to me for permission to put somebody on a TPIM and if it has made a strong enough case, I approve the application. If she thinks that the Home Secretary should be taking operational decisions, I suggest that she should study the history of our constitution.

The right hon. Lady raised the issue of control orders, but, as I have said at this Dispatch Box many times, control orders were being whittled away by the courts—they were not a sustainable system. TPIMs have, in contrast, consistently been upheld by the courts. She mentioned relocation, and, of course, the House has just passed the Counter-Terrorism and Security Act 2015, which adds relocation to the TPIM regime. I understand that she told the BBC on Sunday:

“I think effectively—

that TPIMs and control orders are—

“the same thing if you bring the relocation powers back”.

That is precisely what we have done.

The right hon. Lady says the power to relocate has not always been there, but what she fails to say is that the cases that have been raised in the media date from the time when control orders and the power of relocation were in place. At no point has anybody from the police or Security Service said to me that if we had the power of relocation we would be able to prevent people from travelling to Syria. Indeed, at the weekend, Helen Ball, the deputy assistant commissioner of the Metropolitan police, said—and they have said consistently—

“short of locking someone up for 24 hours a day, you can’t eliminate the risk they pose.”

The shadow Home Secretary herself said yesterday about control orders:

“We can’t pretend it’s going to solve all of the problems.”

I agree with her, which is why we consistently look at the powers available to the police and the security services in dealing with this issue. But, as I made absolutely clear in the answer to her question, this is not just a question of government and the powers we give to the police and to the security services; this is about families and communities as well, and we all need to work together to ensure that we can defeat this poisonous ideology.

[Mr David Davis (Haltemprice and Howden) (Con)]

The Home Secretary should be wary of taking advice from Labour Members on control orders, because under the last four years of their regime seven of the so-called “control order” subjects absconded, in some cases, as we know, to commit jihad abroad. However, will she revisit the issue of using intercept evidence in court, as the best protection of the British public is provided by being able to prosecute, convict and lock up the people who are a threat to the British public?

[Mrs May]

I agree that the best way of dealing with these people who pose a threat is to prosecute them and lock them up. That view has been shared with the assistant commissioner with responsibility for counter-terrorism. Indeed the independent reviewer of terrorism legislation, David Anderson, also made that point. On the question about intercept as evidence, that issue has been looked at on a number of occasions over the years. Most recently, it was considered by a cross-party Privy Council group, which reported some months ago and made it absolutely clear that, in the current situation, it was not appropriate to change the arrangements such that intercept should be used as evidence.

[Mr Jack Straw (Blackburn) (Ind)]

No one is suggesting that there is any range of measures that would completely eliminate the risk of people travelling to Syria and Iraq. My right hon. Friend the shadow Home Secretary has certainly not done so. But since the Home Secretary has now reintroduced the power of relocation, does she not accept that removing that power in 2011 was a mistake?

[Mrs May]

We took the decision that we did in 2011 based on the situation at the time. We have now reviewed the measures that are available and put other measures in place. I repeat what I said earlier, which is that some of the cases that have been quoted in the press go back to a date when control orders with relocation were in place.

[Dr Julian Lewis (New Forest East) (Con)]

Does the Home Secretary agree that it is quite right that when the identity of some brainwashed, narcissistic psychopathic killer is exposed there should be wide media coverage of it? But does she also agree that a degree of self-restraint at some point should be necessary if we are not to build up these bogey men in precisely the way that they intend us to do?

[Mrs May]

I accept my hon. Friend’s point. Indeed, as others have said, including Helen Ball in her interview yesterday, there are other reasons why restraint should be applied, and they include when there are ongoing investigations and when there may be a risk to life involved.

[Keith Vaz (Leicester East) (Lab)]

I am sure that the Home Secretary has heard the anguished pleas of the parents of Shamina, Kadiza and Amira, the three London schoolgirls who have left this country. They left on the Tuesday, but the Deputy Prime Minister of Turkey says that the Turkish authorities in Istanbul were not informed until three days later. I accept that the embassy in London may have been alerted, but this is something that should have gone straight to Istanbul. Will she look again at the circumstances so that we know exactly what the facts are, and will she look at a recommendation made by the Home Affairs Committee, which is that police spotters need to be placed in Istanbul, a destination of concern, so that immediate action can be taken if young girls disappear in this way?

[Mrs May]

I always look with great care at the recommendations of the Home Affairs Committee. The Metropolitan police have been absolutely clear about the date and time at which they alerted the Turkish authorities to the girls going missing. There is concern over this matter. Sadly, we have seen, over time, an increasing number of women and girls going to Syria, alongside the men and the younger boys. This is an ongoing matter, which is why Home Office officials have been talking to Turkish airlines about these issues. I will meet the Transport Secretary to see whether further arrangements can be put in place to ensure that we do not see other families facing the same trauma and stress.

[Dr Julian Huppert (Cambridge) (LD)]

We are of course all concerned about radicalisation in the UK and people going to join ISIS, but I urge the Home Secretary not to give way to the authoritarian views of the Labour party as it was wrong on identity cards, wrong on 90-day detention without charge and is wrong now. Will she update the House on what progress she has made on implementing the Anderson recommendations, which are a far more sensible way to resolve this matter?

[Mrs May]

My hon. Friend will know that we did in fact take on board a number of Anderson’s recommendations in the Counter-Terrorism and Security Bill. David Anderson is carrying out a fuller review for the Government on the question of the threat, the capabilities that are needed and the regulatory framework that needs to be in place to ensure that the police and the security and intelligence agencies have the necessary powers, and I look forward to his report.

[Fiona Mactaggart (Slough) (Lab)]

If I knew at 7 o’clock on Wednesday evening that three girls had gone to Turkey, why did not the authorities in Istanbul?

[Mrs May]

The hon. Lady is basing her comments on statements that have been made in Turkey. The Metropolitan police have made it very clear what the position is and when they alerted the Turkish authorities.

[Bob Stewart (Beckenham) (Con)]

May I reinforce the point made by my hon. Friend the Member for New Forest East (Dr Lewis)? I find it abhorrent that the media continue to use a photograph of a man who is a murderer, to name him and to give him an identity by giving him a nickname. That will probably reinforce the ideas of those who think that what he is doing is good and that he is some sort of modern Jesse James. I just find it abhorrent that our media continue to use this man’s name.

[Mrs May]

I will not comment on any individual case when ongoing investigations are taking place, and I am sure that my hon. Friend would not expect me to do so. What I will say is that we are all appalled and shocked at the horrific barbarism that is being shown by ISIL, and we expect that to be reflected in any reporting.

[Frank Dobson (Holborn and St Pancras) (Lab)]

The Home Secretary spends a great deal of time trying to persuade us that there needs to be more surveillance of everyone and that more data need to be collected. Does she not agree that recent cases suggest that the biggest problem is the incapacity of the security services—although it is not their fault—to deal adequately with the data and information that they already possess?

[Mrs May]

The right hon. Gentleman is right that I am saying that the agencies should have different capabilities. It is right that as people communicate less by telephone and more across the internet, we should update the legislation on access to communications data. This capability is not about looking at the content of any messages that people are exchanging. It is an important capability that has been there for some time and that has proved valuable not just in counter-terrorism cases, but in serious crime cases. I believe that it should be updated and a Conservative Government would certainly do that.

[Geoffrey Clifton-Brown (The Cotswolds) (Con)]

It has been reported in the newspapers that one of the three poor girls was travelling on a false passport. Does that not indicate that there are severe shortcomings in the entry and exit checks by our immigration and nationality department and in the airline checks? Will my right hon. Friend commit a future Conservative Government to a root and branch re-examination of those systems?

[Mrs May]

Of course, we are reintroducing exit checks. A certain amount of advance passenger information is available from airlines. We are looking at other ports of departure and the information that can be available. As I said in response to the shadow Home Secretary, exit checks will be in place in April of this year.

[Mr David Winnick (Walsall North) (Lab)]

I am not aware that the media have made a hero of the individual who has been mentioned today, but is it not important to make it absolutely clear from this Parliament, not just from the Government, that the person who is responsible for the beheading of kidnapped British citizens should be brought to justice in whatever form is necessary and however long it takes?

[Mrs May]

I absolutely agree with the hon. Gentleman that we wish to bring to justice the individual who is responsible for the beheading of British hostages. There is an ongoing police investigation into that case and that is why I am not commenting any further on it. However, he is absolutely right that that individual should be brought to justice.

[Crispin Blunt (Reigate) (Con)]

Will my right hon. Friend ignore any opportunistic criticism and continue to meet the difficult challenge of balancing the defence of our values and our security? Will she continue to ensure that our intelligence services and her Department learn from our experiences in this area, so that we continue to be among the best in the world at getting that balance right?

[Mrs May]

My hon. Friend is right, and of course that is what this Government have done. We have looked at the balance between people’s privacy and liberty and the need for our services to have the appropriate powers and capabilities to keep people safe. I believe that we have struck the right balance, but of course we must continue to consider the issue as matters develop and as the terrorists find new ways of communicating and of carrying out their terrible and horrific attacks. We must be ever vigilant on this matter and that is exactly what the Government have been.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

The Home Secretary failed to answer the question from my right hon. Friend the Member for Normanton, Pontefract and Castleford (Yvette Cooper) about airlines and airline checks. A number of Members from all parties have been raising this concern for some months; I raised it in relation to constituents of mine who had travelled to Syria, tragically, to fight. Will the Home Secretary explain whether specific arrangements are in place with commercial airlines flying to Turkey and Cyprus, specifically with Turkish airlines?

[Mrs May]

A number of measures are put in place at our ports for people leaving the United Kingdom. As I said earlier, we are considering what further steps can be taken and, specifically, are having discussions with Turkish airlines.

[Michael Ellis (Northampton North) (Con)]

Has my right hon. Friend seen the comments made by activists from Cage, an organisation that receives charitable funds? What does she make of those comments, and will she take the opportunity to thank and congratulate in this House the security and intelligence services in this country for their excellent and brave work?

[Mrs May]

To take the latter point first, the shadow Home Secretary made that point and I am happy to do that again, as I have on many occasions in the past and as I did at the weekend. The men and women working for our security services do an excellent job for us. It is challenging work that they are doing unseen and unknown and without general praise precisely because they have to be unseen and unknown. They do an excellent job for us. As for the comments made by Cage, I must say to my hon. Friend in this House that there can be no excuse for the barbarism shown by those operating in the name of ISIL. I condemn anybody who attempts to excuse that barbarism away in the way that has been done by Cage.

[Mr George Howarth (Knowsley) (Lab)]

May I ask the Home Secretary not to set her face completely against the potential the control orders might still offer? Will she give further thought to helping families to be more resilient, particularly when young members are susceptible to violent extremism? Will she give more support and encouragement to projects such as the JAN Trust, which are very helpful to people in that situation and certainly need to be encouraged?

[Mrs May]

The comment that has consistently been made about control orders concerns the power of relocation, but as the shadow Home Secretary said yesterday, TPIMs are effectively the same as control orders if we bring the relocation powers back, which we have done. The right hon. Gentleman is right that many good groups up and down the country are providing support for families. I launched a project by Families Against Stress and Trauma—FAST—last summer, which works with those families whose sons and daughters might have tried or might want to travel to Syria. I also commend the work of Inspire and Sara Khan, standing up with Muslim women throughout the UK against the radicalisation of young people.

[Dr Matthew Offord (Hendon) (Con)]

“World at One” this lunchtime carried a discussion about the Counter-Terrorism and Security Act 2015 and its effect on radicalisation. Will the Home Secretary take this opportunity to send a clear message to universities about how they can play their part in addressing that?

[Mrs May]

I am happy to do so. It is absolutely right that we have included universities in the Prevent duty in the Act. Universities should have a duty of care for the welfare of their students. If radicalisation is taking place on their campus, they should be aware of that and willing to deal with it.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

I would be grateful if the Home Secretary could answer the question from my right hon. Friend the Member for Normanton, Pontefract and Castleford (Yvette Cooper) about what training and support has been provided to teachers and parents from the Bethnal Green academy since the teenager absconded at Christmastime. When does the Home Secretary expect to release the funds to schools and universities to take part in the Prevent programme?

[Mrs May]

We are finalising the Prevent guidance that is going out to universities and the other public sector bodies that are involved, and I understand that the police did have discussions with the school that the hon. Lady mentions.

[Henry Smith (Crawley) (Con)]

I commend my right hon. Friend the Home Secretary for the diligence she has shown in introducing various Prevent programmes to Crawley. Gatwick airport is also in my constituency, so can she say a little more about passenger name record checks for intra-EU flights, not just for those coming from outside the EU?

[Mrs May]

The whole question of exchanging passenger name records for intra-EU flights is one that I and others have been putting forward in the debate in the European Union arena for some time now. I am pleased to say that other member states have recognised the need for an EU PNR directive. It was one of the issues referred to at the recent European Council meeting. I am clear that any such directive should include the exchange of PNR for intra-EU flights. Failing that, it is open to member states to undertake bilateral agreements to that effect.

[John Mann (Bassetlaw) (Lab)]

Scotland Yard’s budget for monitoring extremism on social media has been cut this year—by how much and why?

[Mrs May]

Decisions about individual aspects of Scotland Yard’s budget are a matter for the Metropolitan police. Let me be clear that the Government have protected counter-terrorism policing budgets over our period in office, and we have extended that to 2015-16.

[Charlie Elphicke (Dover) (Con)]

Given that many of these terrorists represent a clear and present danger to our country, our national security and the security of individuals, is it not important that we offer our intelligence services more powers, particularly through human rights reform and a communications data Bill, to ensure that we can secure our nation properly?

[Mrs May]

My hon. Friend makes an important point about the impact that human rights legislation has sometimes had, for example on our ability to deport certain individuals who pose a threat to us here in the UK. I am clear that we need to reform our human rights legislation and introduce a communications data Bill, and a Conservative Government after 7 May will do just that.

[Ian Austin (Dudley North) (Lab)]

Why should members of the public trust for one second Ministers whose judgment was so utterly flawed that they thought terrorist suspects should be able to live wherever they want, mix with whoever they like and have access to computers and mobile phones? Is it not a fact that when we introduced relocation powers not a single terrorist suspect absconded, but when the Home Secretary got rid of them, lots of them did? [Interruption.] She can laugh all she likes, but the people out there do not think it is a laughing matter. Last week Lord Carlile said that if one of those people had been subject to a control order, they would not have been able to leave the country.

[Mrs May]

I am afraid that some of the facts that the hon. Gentleman suggests in his question are inaccurate. Control orders were being whittled away by the courts, as he knows, so we decided to introduce TPIMs. We have now enhanced TPIMs through the Counter-Terrorism and Security Act 2015, and the ability to introduce a TPIM has remained available to the security services upon request to the Secretary of State.

[Andrew Stephenson (Pendle) (Con)]

Yesterday I attended an event in Pendle at which counter-terrorism and security were discussed. It involved the former Pakistani high commissioner, Wajid Shamsul Hasan, the MEP for North West England, Sajjad Karim, my hon. Friend the Member for Gillingham and Rainham (Rehman Chishti) and many more, all of whom reject the idea that the so-called Islamic State has any connection with the true faith of Islam. Does my right hon. Friend agree that dialogue with the vast majority of the law-abiding Muslim community in this country is the best way to avoid radicalisation, rather than stigmatising communities, as Labour’s failed Prevent strategy did?

[Mrs May]

I absolutely agree. We should make it very clear that the so-called Islamic State is neither Islamic nor a state. One of the best ways to prevent radicalisation is for communities themselves to stand up and say that what is being done by terrorists is not being done in their name. I commend those imams and others from Muslim communities across the country who have responded to events such as the murder of Drummer Lee Rigby, the beheading of hostages and recent terrorist incidents in Europe and elsewhere precisely by saying that it is not in their name and that it is not about Islam; it is about a poisonous ideology.

[Andrew Gwynne (Denton and Reddish) (Lab)]

It should not have to be said that the people who were subject to control orders and those who are now subject to TPIMs are very dangerous people indeed. Does the Home Secretary not recognise that the changes that she instigated in 2011 to counter-terrorism laws, particularly the decision to remove the powers of relocation, did not help? I think she does recognise that, from the fact that she had to reintroduce them three years later. Will she say sorry?

[Mrs May]

I can only repeat to the hon. Gentleman what I have said in answer to a number of questions on this matter from his right hon. and hon. Friends. Of course the background against which we are operating has changed over the past few years. We have taken the decisions that we believe were necessary and appropriate at the time.

[Robert Jenrick (Newark) (Con)]

It is right that we show compassion and sympathy for the families. It is every parent’s worst nightmare that their children should do as those young girls have done, but does my right hon. Friend agree that the approach of some in the media leaves something to be desired? I am thinking also of the Government’s YouTube videos, which could make more apparent the full horrors of what those young ladies have got themselves into, to try to deter young people like them from going to Iraq and Syria in the future.

[Mrs May]

My hon. Friend is right. It is important that we make very clear the dangers and the horrors of what can happen when people go to such countries. Even if people are going to Syria with the best of humanitarian intentions, they can find themselves caught up in horrific situations, including with terrorist groups. That message is important. We have consistently been saying to people that they should not be travelling to Syria and Iraq. If they wish to help and support the people of Syria who have been displaced by the actions of the regime in Syria, there are better ways of doing it. That is a message that we will continue to put out.

[Nia Griffith (Llanelli) (Lab)]

Returning to the point first made by the hon. Member for New Forest East (Dr Lewis) that some of these sick individuals revel in and feel rewarded by high-profile media, does the Home Secretary agree that when young girls like those choose to travel, apart from instances where their identity is needed, perhaps for the public to apprehend them on their route, it would be far better if the media were to report the facts in a more anonymised form, rather than naming those individuals and showing pictures of them time and again?

[Mrs May]

The hon. Lady makes an important point. A free press is obviously part of what underpins our democracy, but I would expect the media to be responsible in the way in which they deal with such issues in a number of ways. She mentioned the young girls travelling and whether their names should have been revealed. I say to the media that these are important issues. The families in that case are under considerable stress and trauma, suffering as a result of their daughters having gone to Syria, and I expect the media to respect that.

[Adam Afriyie (Windsor) (Con)]

With Heathrow airport in my own patch, exit checks are very important to me. The whole House, including the shadow Home Secretary, has welcomed the improvements made to TPIMs and to other Prevent measures. On relocation, exit checks and the data and communications changes that we need, the Conservative elements of the Government have been pushing hard to put these in place sooner rather than later. To what extent has the Home Secretary been held back by the Liberal Democrats in coalition?

[Mrs May]

The reintroduction of exit checks was a coalition Government agreement; it was in the coalition Government agreement that we published at the beginning of this Government as one of the measures that we were going to introduce. The draft Communications Data Bill is a different matter. It is a matter of public record that our Liberal Democrat colleagues did not want the introduction of that Bill. That is why we have not been able to do it.

[Heidi Alexander (Lewisham East) (Lab)]

Speaking on the BBC yesterday, Deputy Assistant Commissioner Helen Ball said that the Metropolitan police have always thought that relocation powers were a valuable tool in disrupting terrorist networks. Is the Home Secretary saying that when she relaxed the control order regime, the Metropolitan police never made this clear to her?

[Mrs May]

When we changed the control orders regime we discussed the matter with the agencies and the police, and they were absolutely clear that the changes we were making did not significantly increase the risk.

[Mr Philip Hollobone (Kettering) (Con)]

rose—

[Mr Speaker]

I have saved the hon. Gentleman, who is an exquisite delicacy in the House, until last.

[Mr Hollobone]

With regard to the London schoolgirls going to Syria, is there not a mechanism in place whereby parents can apply for a parental watch on a young person’s passport so that if they undertake an airline ticket purchase or present themselves at the airport, an alarm goes off that the parents need to be contacted because the passport is being used without parental consent?

[Mrs May]

I know that parents up and down the country who are concerned about the possibility of their children travelling have removed their passports from them so that they are unable to access them in order to travel. In some cases, that has been effective in ensuring that young people do not travel.

[Jason McCartney (Colne Valley) (Con)]

rose—

[Sir Alan Beith (Berwick-upon-Tweed) (LD)]

On a point of order, Mr Speaker.

[Mr Speaker]

I will come to the right hon. Gentleman’s point of order, but, to be fair, the hon. Member for Colne Valley (Jason McCartney) has been present in the Chamber, although he has only just started standing—but that is perfectly proper. Let us hear from him.

[Jason McCartney]

Thank you, Mr Speaker; nobody has made the point that I am about to make. Many legitimate people are travelling from these troubled parts of the world, including students from the Kurdistan region of northern Iraq, many of whom study at Huddersfield university. Will the Secretary of State assure me that these security measures will ensure that they are still able to travel to our country and enjoy a world-class education at our universities?

[Mrs May]

My hon. Friend makes an important point. The assumption that has appeared to lie behind some of the points that have been made is that there should be security because any young person travelling is a matter of concern, but of course that is not right—there will be people travelling for perfectly legitimate reasons. In relation to travel to Turkey, I think that about 2 million British tourists go to Turkey each summer, so there is significant movement between the United Kingdom and Turkey, and that is an important part of the Turkish economy.

Point of Order

Monday 2nd March 2015 Commons Chamber

16:11

[Sir Alan Beith (Berwick-upon-Tweed) (LD)]

I seek your help, Mr Speaker. I received an e-mail from the Chancellor of the Exchequer engagingly entitled “Constituency courtesy”, which told me that he was proposing to visit my constituency on the following day—Friday—as indeed he duly did. However, this e-mail was sent at 9.17 pm on Thursday night, when I received it. That seems to stretch the concept of courtesy rather a long way. Could we not introduce some sort of training course or refresher course that we can send Ministers and their advisers on so that they have a full understanding of what these courtesies are?

[Mr Speaker]

I am bound to say that I think Members would benefit from such a course. I have known the right hon. Gentleman long enough to know that, perhaps unlike a number of colleagues in all parties, his own included, he himself would never be guilty of a discourtesy because he is among the most courteous Members of the House. I think that people ought to observe the spirit and not just the letter of the convention. Many people will feel that it is a discourtesy for him to be notified at such a late stage. I leave colleagues to consider whether that is worthy of somebody who occupies any ministerial office—notably, in this case, the occupant of the office of Chancellor of the Exchequer. I think that people ought to rise to the level of events, if I can put it that way.

Estimates Day

Monday 2nd March 2015 Commons Chamber

[2nd Allotted Day]

Estimates 2014-15

Monday 2nd March 2015 Commons Chamber

Department for Communities and Local Government

Monday 2nd March 2015 Commons Chamber

Devolution in England

Monday 2nd March 2015 Commons Chamber

[Relevant Documents: First Report from the Communities and Local Government Committee, on Devolution in England: the case for local government, HC 503, and the Government response, Cm 8998; and Third Report from the Political and Constitutional Reform Committee, Session 2012-13, Prospects for codifying the relationship between central and local government, HC 656, and the Government response, Cm 8623.]

Motion made, and Question proposed,

That, for the year ending with 31 March 2015, for expenditure by the Department for Communities and Local Government:

(1) further resources, not exceeding £752,206,000 be authorised for use for current purposes as set out in HC 1019,

(2) the resources authorised for use for capital purposes be reduced by £607,860,000 as so set out, and

(3) the sum authorised for issue out of the Consolidated Fund be reduced by £1,092,985,000 as so set out.—(Damian Hinds.)

16:13

[Mr Clive Betts (Sheffield South East) (Lab)]

It is a great pleasure to introduce this debate on the report of the Communities and Local Government Committee entitled “Devolution in England: the case for local government”—which rather gives away the Committee’s findings and recommendations. I thank Professor Alan Harding from Liverpool university and Sean Nolan, an ex-local authority treasurer, who, as our specialist advisers, helped us through a great deal of technicality in trying to come to terms with the recommendations we made. I also thank Steve Habberley, our Committee specialist, whose hard work and diligence helped us through a very challenging report on which to reach conclusions.

The Committee decided on its inquiry not because of any specific Government legislation, but because of the widespread and welcome interest across all parties in localism, decentralisation and devolution. Despite recent reforms, the reality is that the United Kingdom, particularly England, remains one of the most centralised western democracies in terms of its arrangements both for expenditure and for tax raising, and that is still a matter of concern. Indeed, figures produced by the Mayor of London show that local authorities in London have to get 75% of their funding from central Government. In Tokyo the figure is only 7%, and in Madrid, New York and Berlin it ranges from 25% to 40%. In other words, all those capital cities get more than half their money from locally raised taxes, while in London only a quarter of it comes from such taxes.

[Henry Smith (Crawley) (Con)]

The hon. Gentleman is correct about the importance of devolution to cities in England, but the counties make up about 50% of its population and about 85% of its land area. Does he agree that there is a very strong case for devolution to county government, which has a strategic and very strong democratic record?

[Mr Betts]

Absolutely. The essence of our recommendations is that there should be a framework—a pathway—by which all areas of the country could achieve devolved powers. Some will probably go more quickly than others, but there is no reason for there to be a barrier to all areas joining in. That is very much in the spirit of the work of the Local Government Finance Commission, which has just been published by the Local Government Association and the Chartered Institute of Public Finance and Accountancy. It has slightly different arrangements, although the essence is that, while some authorities will go quicker than others, they will all get there eventually.

[Andrew Gwynne (Denton and Reddish) (Lab)]

I am a firm believer in the decentralisation of power, but does my hon. Friend recognise that decentralisation is not an end in itself and that we need to have accountability alongside it? Does he share my concerns that, under the Greater Manchester proposals, nobody in Greater Manchester other than the council leaders has been asked about what model of decentralisation they would like to see?

[Mr Betts]

We looked at that issue and it is clear that there have to be proper governance arrangements if local authorities are to have not just large amounts of extra spending to control, but greater tax-raising powers, as we also recommend. We looked specifically at the combined authorities, which is the issue my hon. Friend refers to, and we have said that different government arrangements might be suitable in different areas. A directly elected mayor might be appropriate in some areas and a strengthened Public Accounts Committee could scrutinise the work of the executive of the combined authorities. In other areas an indirectly elected mayor might be appropriate, as is the case in Bologna and other places in the world. There are different models available, but no single one is necessarily the right one for every area. We should not say that devolution cannot happen until an area has a particular model of governance in place, but it is clearly right that they should get a proper model in place.

[Mr Graham Allen (Nottingham North) (Lab)]

I support the remarks of my fellow Select Committee Chair. We have to make a start, particularly given that our country has been so massively over-centralised in Whitehall. It may be a halting start or it may take different forms, but the letter crafted by the Mayor of London, the leader of Greater Manchester, and by Liberal Democrats, Conservatives, Labour members and parish councils that appeared in The Times before Christmas called for devolution at all levels to be comparable—not identical—to that achieved in Scotland. Does my hon. Friend think there is something in the water in England that means that somehow we are incapable of devolving effectively over the long term in England?

[Mr Betts]

That is an interesting question. I do not think there is anything in the water of members of the Communities and Local Government Committee that would prevent that. Members on the two Front Benches probably have slightly different water that affects the way they think on certain issues. I will come back to that in due course.

[Sir Alan Beith (Berwick-upon-Tweed) (LD)]

rose—

[Mr Betts]

The right hon. Gentleman on the third Front Bench wants to join in as well.

[Sir Alan Beith]

I pay tribute to the hon. Gentleman’s commitment on this issue, particularly to the devolution of tax-raising powers. Does he recognise that the accountability problem, which has been raised, is a real one? For example, in the north-east, one party currently has the leadership in every authority, so there is a lack of representation of the minorities, whether Conservative or Liberal Democrat, across the region in bodies holding accountability for what is done with the money.

[Mr Betts]

I hear what the right hon. Gentleman says and I think the issue of accountability is important, but it can be dealt with in a number of ways. Instinctively, my view is that these things should be decided at a local level, and areas may come to different views about how accountability should be exercised. I do not think that it is up to us to prescribe one model for how that should happen.

[Mr John Redwood (Wokingham) (Con)]

Will the hon. Gentleman give way?

[Robert Neill (Bromley and Chislehurst) (Con)]

Will the hon. Gentleman give way?

[Mr Betts]

I will give way to the right hon. Gentleman.

[Robert Neill]

First, I assure—[Interruption.]

[Mr Speaker]

Order. We are not having an identity parade, but I think the hon. Gentleman has the right hon. Member for Wokingham (Mr Redwood) in mind.

[Mr Redwood]

I am grateful to the Chairman of the Select Committee. When the members of his Committee looked at the big devolution of powers, including that of income tax to Scotland, did they ask themselves how England would settle such issues? Is there not a need for income tax to be settled at England level, just as there is not power in Scotland?

[Mr Betts]

There are two aspects to that intervention. The first is that we did not look at income tax, although we said at the end of the report that, in terms of fiscal devolution, there is a case for considering income tax and VAT further. That is an issue for the future, but we recognise that it has to be addressed. The second issue probably strays into the area of English votes on English laws, which the Committee did not go into, but there is a case for devolution within England to more local areas irrespective of how Parliament addresses the other issue.

[Robert Neill]

The hon. Gentleman is making an important and powerful point. He is right to say that although accountability is critical, we should not get too hung up on issues of party political control. When, as the Minister, I signed off the Greater Manchester combined authority, it struck me that both Conservative-controlled Trafford and Liberal Democrat-led Stockport were able to live within the system that was set up. It is important to get the structure of devolution in place before we worry about other matters.

[Mr Betts]

The hon. Gentleman is absolutely right. Indeed, the Committee visited Manchester as part of the inquiry, and it found exactly the arrangements that he has described.

We also went to look at the arrangements in Lyon in France. Interestingly, it has attempted, with the development of the grande métropole, to pull authorities together into almost a combined authority arrangement. It currently has an indirectly elected mayor and it will eventually move to a directly elected mayor, so it will have two different governance arrangements in the same area within a short period. There are therefore clearly alternatives.

The report was agreed unanimously—it is a cross-party report—and it was very much written with the next Parliament in mind. The Government made a response, as they should to a Select Committee report. I would say to the Minister that responses are supposed to be made within eight weeks, not eight months. The response was rather a long time in coming, as though the Government could not quite get their collective view together about what should be done.

It was very good to hear the comment that the

“Government welcomes this report’s contribution to the ongoing public debate on the scope for devolution and decentralisation within England.”

That is welcome, at least as a contribution to the debate, but there were not many welcomes in the Government response to the Select Committee’s specific recommendations. I have obviously also read the briefing from those on the Opposition Front Bench. I would say to both Government and Opposition Front Benchers that they do not seem fully to have bought in to the level of change that the Select Committee has recommended and which I think we need. I am sure we will have an ongoing debate with them both over a period of time.

The report was written before the Scottish referendum, but it anticipated that more taxation and spending powers would be given to Scotland and Wales. Very simply, I think that what is right for Scotland and Wales is right for England, and we followed that very simple rule. The report was also written after the London Finance Commission report, which was supported by the Mayor and the London boroughs, as well as the eight Core Cities. All those bodies and the Local Government Association have welcomed our report. Indeed, the Mayor said that Ministers “could not ignore” the “excellent” findings, as it would

“provide England’s cities with the means, incentives and crucially the stability of funding to deliver much needed jobs, growth and infrastructure”.

The Mayor of London is clearly with us, and he is pushing Ministers a little bit further than they are currently inclined to go.

We have had subsequent reports from the Institute for Public Policy Research, ResPublica, the City Growth Commission, and we now have the Independent Commission on Local Government Finance from the Local Government Association and the Chartered Institute of Public Finance and Accountancy. All have come to a similar direction of travel on devolution, perhaps with slight differences concerning how it should be done. We came to the conclusion that in England we should not be creating new bodies or regions, for example, and that we should base devolution on local authorities and combinations of local authorities—the Government have at least welcomed that fundamental recommendation.

Why not local authorities? Greater Manchester has a larger gross value added than Wales, and London has a larger GVA than Scotland, Wales and Northern Ireland put together. Those are large economic entities, and there is no problem about devolving powers to them. We came to the conclusion that devolution was beneficial for growth, a way of delivering better public services that are better related to local need, and a possible way of re-energising the democratic process. People feel that we in Westminster are somewhat out of touch with what happens in their daily lives, and there is more chance of reconnecting politicians and the democratic process with people if decisions are taken at a more local level.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

Is my hon. Friend concerned about how the Government have pushed through this undemocratic process in terms of what has happened in Greater Manchester and the NHS, because it seems to be completely at odds with the process of increasing democratic involvement?

[Mr Betts]

I hope that colleagues will discuss with their colleagues in local government in Greater Manchester how that process can be made truly accountable and how social care and health can be joined up—I think that aspiration goes across the House. I have been concerned that the debate could lead to social care being transferred to the health service, and local accountability being lost as part of that process. I therefore welcome what the Government have done to put health commissioning into the arena for local councillors to commission along with social care, as that is an interesting step forward. A lot of detail is required to ensure that that is done properly and with true local accountability, but the principle of putting that measure into the local arena, rather than centralising it to NHS England, is probably correct.

[Lisa Nandy (Wigan) (Lab)]

I share my hon. Friend’s views about the benefits of devolution to people and communities, but what is happening in Greater Manchester looks to me like a levelling up of power, not a levelling down. Health and social care is currently rolled together at local level with local accountability, but the deal imposed on Greater Manchester takes those decisions to a regional level, and at worst takes away a national framework. It enables the centre to hold its hands up and say, “It’s not our problem”, and takes away accountability from local people and councillors to make decisions about their local areas.

[Mr Betts]

Without going into the details of Greater Manchester, which I do not know all the aspects of, this seems to be a debate between the combined authority, and the collective of leaders there, and individual local councils about further localisation. In my view, devolution does not simply stop with the transfer of power from central Government to a local authority or combination of authorities; it is about how combined authorities enable devolution within their areas to existing local councils, and how those local councils ensure that devolution goes out of the town hall door and into local communities. We cannot be too prescriptive of those stages in this debate, but I understand the concern about losing national frameworks. The idea that everything in the national health service works similarly across the country is not true. Indeed, the words “postcode lottery” did not come from local government but from the NHS because things have been done differently in different parts of the country. More accountability through mechanisms that will potentially be set up is the way forward. I hear the concerns, but they are a debate for Members to have with their colleagues in councils in Greater Manchester.

The Committee defined fiscal devolution as:

“handing to local authorities the power to raise money through a range of existing and new taxes and charges; some responsibility for setting those taxes; and the facility to borrow.”

We contrasted that with decentralisation transferring powers over service delivery and spending to local authorities. We welcomed these developments, but said that greater control over local spending did not constitute devolution. In that sense, we are disappointed with the Government’s response, which seems to equate fiscal devolution with a desire to raise taxes everywhere. The two are not the same. Fiscal devolution is about making tax-raising decisions at a different level, not necessarily about raising taxes through those decisions. I think the Government missed that point.

I hope the Minister agrees with the Prime Minister, when he said the other day:

“Today’s agreement paves the way for a referendum, that could deliver an assembly that’s not just a spending body but is actually responsible for raising more of its revenue too. And to me that is responsible devolution, that is real devolution and I think that is vital for Wales”.

It is vital, too, for Manchester, London and the other major cities that we are going to devolve powers to. The Prime Minister has made a really important point. It means that those who spend taxpayers’ money must be made more responsible for raising it. That is an absolutely fundamental point. Devolution is not simply about handing money out from the centre and allowing more say in how it is spent at local level. It is about holding local politicians to account not just for spending the money, but raising it in the first place. That is fundamental. If the Government resist that, they will stop the general flow of movement throughout the House and the country that requires genuine devolution that is more than simply decentralisation of spending powers to take place.

[Graham Stringer (Blackley and Broughton) (Lab)]

My hon. Friend has produced an excellent report. On the relationship between taxes and responsibility, does he agree that one of the problems in Scotland, which has allowed the Scottish National party to have fantasies that it can spend more and more money, is that the Scottish Parliament was set up with the ability to spend money but not to raise taxes? That is the exact opposite of what the plantation people had in north America, where their cry was “No taxation without representation”. In Scotland, we have had representation and tax without taxation, which has been a democratic disaster.

[Mr Betts]

That has been true so far, but the positions in Scotland and in Wales are going to change. They will have more tax-raising powers and will be held to account. Otherwise, we will have a body that simply spends and gives out the largess, but is not held accountable for raising the money in the first place.

The Committee tried to deal with some difficult issues. We recognise that we may not have got absolutely all the details right. We felt, on balance, that there was a very clear case that devolution would encourage greater growth, particularly in cities. That applies to counties as well, but there are very clear figures for cities. Unlike other countries where the GVA of their major cities tends to be above the national average, with the exception of London and Bristol, the GVAs of the major cities in this country are actually below the national average. There is a fundamental problem there. Devolution does not necessarily guarantee more growth, but it removes some of the current restrictions on decisions being taken at a local level that can make growth take place.

[George Hollingbery (Meon Valley) (Con)]

I am grateful to the Chair of the Select Committee with whom I served for some time, although I did not take part in this report. One problem of devolution as he describes it, particularly on the issue of GVA in cities, is potentially the buoyancy and predictability of taxation and revenues. I would have thought that if this was done too rapidly and without some sort of mechanism from central Government to iron out fluctuations, there could be some very severe problems.

[Mr Betts]

I was going to come on to equalisation. Some areas have a greater ability to create and get the benefits of growth than others. This was a difficult issue, and we looked at it. I see the former Minister the hon. Member for Bromley and Chislehurst (Robert Neill) in his place. We thought that what had been done with the business rate retention scheme, or at least the partial retention scheme, was actually quite a good model: a starting point where a certain amount of tax is collected and transferred to a local authority in exchange for the grant that is currently given. The extra receipts that come in through growth would be kept in that area. Some receipts might in future be disproportionate, perhaps because of a very large increase in rateable values that are not directly linked to the efforts of an authority, so there should be a resetting arrangement every so often to take account of that.

We thought that was quite a careful way of doing it. We have probably gone further, in that we recommend that the totality of business rates be kept at local level and there should be a right within a group of authorities, a combined authority or the Greater London authority to set business rates as well—and obviously the element of any increase in the business rate level should not be taken back by central Government. It is a complicated issue, but we thought that the Government had basically got it right in their business rate retention scheme, which could be used as a model for the totality of business rates, or for stamp duty or capital gains tax, bearing in mind the fact that stamp duty is much more a London issue and therefore slightly more complicated. We recommend the idea in principle, but we recognise that it needs to be looked at in the way the hon. Member for Bromley and Chislehurst mentioned.

We tried to deal with equalisation. We suggested that an independent body be set up to deal with problems of resetting and other issues where there might be a conflict between central and local government. The Government dismissed that and thought that they could do all those things. We thought it would probably be useful to have a body like the Office for Budget Responsibility in the local government sphere.

In principle, we are recommending that a framework be set out for how more powers could be devolved, with local authorities setting out their governance arrangements, how they will be fiscally responsible and the sort of strategy they have for using any powers that are devolved to them. We recognised that progress would probably be made more quickly in some areas than in others and that initially the GLA and the combined authorities would probably be best placed to take on those powers. We see them very quickly taking on place-based budgets, strategic planning and housing, and the sorts of health arrangements proposed for Greater Manchester—I will be careful to go back to that with my hon. Friend the Member for Wigan (Lisa Nandy) present. Indeed, the Government intend to introduce primary legislation to allow those sorts of powers to be taken by the combined authorities. We also recommended the devolution of 100% of business rates, setting the multiplier on business rates, stamp duty and capital gains tax, and flexibility with council tax bands as well.

Although all local authorities could go there, we thought there were some changes that could immediately be made to the powers available to all local authorities, including the complete freedom to set council tax. It is quite staggering that the one tax that local authorities have got—the one that is supposedly theirs—is one for which any increase by more than the Secretary of State thinks is appropriate has to be put to a referendum. There is no other tax in this country for which we have to have a referendum to increase it. Those sorts of freedoms could be given straight away. We thought there could be further freedoms by pushing the commissioning of the Work programme down to all local authorities and that controls over fees and charges could be freed up. Why should the Secretary of State fix fees and charges? They should be fixed at a more local level.

[Mr Allen]

My hon. Friend will know that the report from the Select Committee on Political and Constitutional Reform, which I chair, is tagged to today’s debate. We talk about the democratic aspect of this issue, which may reassure some of our hon. Friends and other hon. Members in the Chamber. Does he accept that although we might get a benign Government who wish to push power away from Whitehall, there may be Governments who want to take it back? Does he accept what I hope is the strong case made by my Committee that there needs to be some entrenchment of the independence and rights of local government? Otherwise, that possibility could come true in time.

[Mr Betts]

Yes, and I congratulate my hon. Friend and his Select Committee on the work they have done; indeed, we have worked together on a number of these aspects. He is absolutely right: there ought to be some fundamental commitment to the rights of local authorities to have these devolved powers. The worry is that everyone feels that this is a great thing now, but in five years’ time it could be reversed. There needs to be a degree of certainty about the direction of travel we are moving in.

[Bob Stewart (Beckenham) (Con)]

Will the hon. Gentleman give way?

[Mr Betts]

This will be the last intervention; then I will conclude.

[Bob Stewart]

Once these powers have been devolved, what happens if a local authority started behaving in a mad, mad way? Would national Government have any oversight in that instance, or is there none?

[Mr Betts]

It is possible for a Secretary of State to have reserve powers to intervene in extremis, as indeed the Secretary of State has powers to do now. [Interruption.] I hear a little whisper from my hon. Friend the Member for Nottingham North (Mr Allen) about what happens when the central Government behave in a completely irresponsible way—who can deal with them? At the local level, the local electorate can take a view.

[Robert Neill]

It might be worth bearing in mind the fact—for the benefit of my hon. Friend the Member for Beckenham (Bob Stewart)—that even with significantly greater devolution, the local authority would still have to behave within the principles of public law, acting in Wednesbury reasonableness terms, and be subject to judicial review if it behaved wholly irrationally.

[Mr Betts]

I am sure lawyers will not be out of business any time soon on this matter The hon. Gentleman is absolutely right. In our recommendations on extra borrowing powers as part of a devolution package—including the housing revenue account and using tax increment financing more actively as local authorities have complete control over business rates—we make it clear that all the borrowing has to be done within the prudential borrowing rules. That is absolutely clear.

There is one other major issue: the control total for total managed expenditure that central Government use. The Government have already had to accept that if the Scottish Parliament decides to raise more money and spend it, that has to come outside the total. If Scotland can vary it, there cannot be a total managed expenditure that is absolutely fixed, because it cannot be cut elsewhere to compensate for Scotland’s increase. The principle has been accepted, and the Treasury has to relax more about allowing local authorities to raise money for investment purposes at local level outside the controlled total.

Finally, let us return to what the Prime Minister said about devolution in Wales:

“That means those who spend taxpayers’ money must be more responsible for raising it.”

That is a fundamental point. It is why fiscal devolution, as well as spending devolution, is essential. As the Select Committee said:

“The point has been reached for the Government (and policy makers in other political parties) to make it clear whether they are committed in principle to large-scale and more comprehensive fiscal devolution in England.”

We as a Select Committee are, and we believe that all those on the Front Benches should be, too.

16:42

[Damian Collins (Folkestone and Hythe) (Con)]

I congratulate the Select Committee on its report and the hon. Member for Sheffield South East (Mr Betts) as Chairman on his excellent speech introducing it. He is right that there is a consensus between the political parties on the need for, and role of, greater devolution. In my view, that should include devolution of powers not just from central government to local and regional government, but ultimately from local government to communities as well. I shall touch on that in my remarks.

The topical issue in this debate is about the northern powerhouse, the Manchester area and the devolution of powers from central Government to that Greater Manchester authority on matters including economic development and infrastructure, and health and social care. I am sure we will hear more from hon. Members from that region as the debate proceeds. In my region of Kent, however, many people looking at that level of devolution would probably welcome it and like to see it in their area, too.

The Select Committee Chairman rightly highlighted the number of city and county areas in the country that are of comparable size to other devolved areas of government. Kent, for example, has a similar size of population and parliamentary representation as Northern Ireland, which is a clearly defined area. If devolution can be managed in Northern Ireland, I think it can be managed in an English county authority, particularly one with more than 1.5 million people, as well. I would like to see this form of devolution—incorporating the planning of major economic projects, major investments and major infrastructure projects. We can take a county-wide view, lobby the Government for money, plan for the future and have the power to manage more of the investment ourselves and to create our own priorities, particular for transport infrastructure.

The debate about the integration and local management of health and social services also reflects something that many hon. Members would recognise and agree with for their own communities—the fact that greater integration between the management of those two resources is essential. We need to consider the experience of patients either being treated in the health service or receiving social care in their community so that they end up on one single pathway of care that can be managed by different bodies. The more they are integrated and the more their budgets are managed together, the better the results will be.

As we all know from our constituency case work, when a vulnerable person needs urgent and expensive medical care, we know exactly how that should be dealt with and it is often easy to provide for it, whereas when someone needs less expensive intervention at a lower level to support independent living at home, the money may be harder to find. I believe that if we adopted a more strategic approach and viewed such cases alongside each other, we would deliver not only better value for money for the taxpayer but better outcomes for patients.

[Mr Redwood]

Does my hon. Friend agree that we also need an England level of decision making when it comes to strategic railways, strategic roads and major health policies? We already have that in Whitehall Departments, but is there not a fundamental injustice if Members of Parliament from other parts of the United Kingdom can vote on such issues when they are England-only issues handled by England Ministers?

[Damian Collins]

I agree that powers and decisions should not be forced on English communities by MPs who are not affected by the outcomes of their votes. However, I think that there is a case for devolution of the kind that we have seen in the Greater Manchester area to large English authorities—county authorities such as Kent county council, for instance—which should be able to take a strategic lead. My right hon. Friend is right about major infrastructure projects. Local enterprise partnership boards, for instance, are often better placed than someone in Whitehall to know which road and which rail network should be made a priority for funding and investment. Local leadership of that kind is greatly to be welcomed.

[Mr Allen]

Does the hon. Gentleman accept that if all that we do relates to the question of English whipped MP votes for English laws, we may well recreate the worst features of the Whitehall system rather than devolving power to where it can be used more effectively at local levels?

[Damian Collins]

I think that there are two important debates to be had, and that it would not necessarily be helpful for them to become entirely enmeshed. There is a debate to be had about English votes and English laws, which is very important to the settlement for the whole United Kingdom. As one who believes in the Union, I think that we must get that settlement right. We need to look at it again, and we are doing so. There is another debate to be had about the role of devolution to city regions and larger strategic authorities in England, which might cause some regions to look with envy at others and say, “We wish we had some of those more devolved powers.”

In some respects, that debate is more specific. I think that it should be led by city and other local regions, presenting their own proposals, and that there should be an active dialogue in which the presumption is that devolution should and could be possible for those regions. As I said earlier, I think that health and social care should be a priority, alongside economic development and infrastructure. That is why I was particularly pleased by the announcement about Greater Manchester.

Many local authorities are already considering how services can be better integrated, and, in my area of south-east Kent and in Dover, the Kent Health Commission has examined the issue in some detail. GPs in Folkestone and Dover have been working on a pathway of proactive health care enabling more joint decisions to be made by GPs and social services. Such a system often leads to better-quality interventions, better advice for patients, and fewer occasions on which patients are required to go to a major hospital because of a failure in their treatment and care pathway. Obviously that is not only inconvenient for the patient, but a more expensive and often less effective solution. What I am proposing are common-sense reforms.

We should look beyond the city regions to the county areas. We should consider the role that could be played by more strategic authorities in not only receiving powers from central Government but managing the relationships between county and district authorities, and parish councils as well. In Kent we have three tiers of local government, county, district and town parish councils. We often hear the challenging cry, “Who is in charge?” It can be frustrating when so many powers are split between authorities, or it is not clear which is the lead authority.

I think that a degree of simplification and clearer structures under the umbrella of a strategic authority would make sense. We see that in part already with district councils working together to share resources on the environment and waste management and on housing allocation and provision. In east Kent we have seen the East Kent Housing group bringing together different districts and boroughs to work together on common housing strategies. That is a sensible use of resources and will deliver a better quality of service for local residents, and we should see more of it.

Could there also be scope to look at other central Government agencies working with a strategic authority in areas such as Kent? For example, we already have local flood management run in part by the Environment Agency and by the county council. There are also major strategic national projects that are of great significance to my community but on a scale that makes it right for central Government to take the lead. For example, in respect of the completion of the sea defences at Dymchurch on the English channel coast in my constituency, investment that has already been spent and that is currently planned amounts to around £130 million. That is clearly a significant capital investment. Many other schemes are managed routinely by the Environment Agency, the local authority and the local drainage boards. Do we really need three different bodies to manage some of that work? Could it not be better managed by devolving it to a local strategic authority that could oversee some of the work currently done by Government agencies operating within a national framework? Could not such work be done better locally? Those are issues we should look at, too.

I said at the beginning of my remarks that I wanted to look at the scope for devolving powers to communities. We have seen this in a number of areas, such as the devolution, effectively, of the management of schools to academies, so that schools can now manage their own budgets and, indeed, roll them over. That was a significant reform. There are head teachers in my constituency who say that gives them greater certainty in planning for the future, and they are perfectly able to manage their budgets and are doing so very well.

There are other areas of devolved government, too. In Kent there has been a particular success in devolving youth service provision to local communities. That is contracted out. I declare an interest as chair of the Folkestone Youth Project. It receives a budget from the county council, and I believe it delivers a better and more flexible youth service than was delivered before—it is designed around the people who use it and it is not run by the county council. It is not necessary for the county council to run that. It may be responsible and commission and provide the resources, but the communities can design it. We are already seeing that in library provision on a voluntary basis, where villages and parishes are coming up to take over the provision of their local libraries. Often they can design and run that service more effectively than the council could.

[Mark Pawsey (Rugby) (Con)]

My hon. Friend is talking very eloquently about the need to devolve powers to communities. Does he agree that neighbourhood planning represents an opportunity for communities to express their preferences in respect of how they see their communities developing over time?

[Damian Collins]

I agree with my hon. Friend and believe that having a good local plan is the best guarantee a local community has that it can design its future in line with its own aspirations and ambitions. That is a process that councils work on in different ways, but I believe that a strong and robust local plan and good neighbourhood plans are a very important way of designing the services that people want and allocating them as communities want. It is something they should pursue.

I shall not take up any more time as other Members wish to speak, but I just want to reiterate the fact that I think the devolution of power from central Government to English county regions should be considered, as well as for major city regions. The major county regions such as Kent are just as capable of taking on those powers as major city regions. We should also consider creating more strategic authorities that look to centralise powers between districts and borough councils within those strategic authorities. We should look not just at devolving power from the centre but at how those local authorities might work together, and, wherever possible, at devolving further power to the communities themselves. That is the general approach we should follow. I welcome the Select Committee report and the important debate it has started.

[Several hon. Members]

rose—

[Madam Deputy Speaker (Mrs Eleanor Laing)]

Order. The hon. Member for Folkestone and Hythe (Damian Collins) has spoken for approximately 10 minutes, which is just about right in a debate such as this, and fits in with the amount of time available to us. If everybody has the courtesy to speak for approximately 10 minutes, it will not be necessary to impose a formal time limit. I hope we can manage without such a time limit.

16:54

[Graham Stringer (Blackley and Broughton) (Lab)]

I would like to start by disagreeing with my hon. Friend the Member for Denton and Reddish (Andrew Gwynne), who said in an intervention on the Chair of the Select Committee, my hon. Friend the Member for Sheffield South East (Mr Betts), that decentralisation was not an aim in itself. If democracy and local democracy is an objective—and I believe it is—then decentralisation is an objective. To allow local people to vote for people to take decisions that affect them directly, and for the people who are elected to raise local taxes to pay for those services, is a clear objective. There is absolutely no guarantee, in any system of national or local democracy, that this will lead to efficient services or economic growth, but at the heart of the matter is the principle that we should be able to vote for the people who take decisions using public money raised through taxes. I therefore believe that that is an objective.

I am not on the Select Committee, but I have read the report and I have been left with two conflicting emotions. First, I found the report depressing, although not because it is not a good report; it is a good report and it goes into a lot of detail. I was elected—as I suspect my hon. Friend the Member for Sheffield South East was—to a local authority more than a third of century ago. At that time, local authorities had complete control over the level of the business rate and over their other rates, and they could set levels of expenditure. It is a measure of how far we have moved that we now think it an advance to have a share of the local business rate. That is a depressing thought. On the other hand, I am optimistic about some of the Government’s proposals and some of the activities in our major cities and counties where agreement to devolve powers has been reached. There seems to be a movement to reverse many decades of centralisation.

There is one thought that lies behind a lot of the Government’s thinking and behind the thinking of other Members, even though it might not be expressed. It is that central Government somehow do things better than local government. I have never seen any evidence of that. Let us consider the waste of money on the NHS computer. I do not have the exact figures, but I believe that about £12 billion has been wasted—a mere £12 billion. That would probably be sufficient to fund the Government grants to run Manchester and Birmingham for about a decade, and that is just one example of a failed computer programme. It is extraordinary that central Government can sit there and think that they are more effective than local government. There is no evidence whatever for that.

[Mr Betts]

Thinking slightly cynically, may I ask my hon. Friend whether he thinks that Treasury Ministers and shadow Treasury Ministers are interested in pushing more spending powers down to local level because they think that they can get better value out of that arrangement and that if there is more austerity to come, local government would probably manage it better?

[Graham Stringer]

Sometimes that is absolutely true. It is sometimes the objective of central Government to pass on the responsibility for “difficult decisions”, which can often be code for “cuts”.

In the light of the great achievements of cities such as Sheffield, Birmingham, Manchester and Newcastle—the cities that this country’s wealth was built on—we have taken that money and power and centralised it. This has led to an increase in the north-south divide. London has such a booming economy because of its geography and because of the City of London, but also because the expenditure in local government has been centralised, and about 90%—we can argue about the final decimal point—of the expenditure on transport has been spent in London and the south-east and not in the other regions. That in itself leads to economic growth. There is also an increased intensity of investment in hospitals and science in the golden triangle of Oxford, Cambridge and London.

On that basis, I very much welcomed the statement about the devolution to Manchester, the powerhouse of the north and the combined authorities, which would give control over the skills budget and over transport, allow the re-regulation of buses in Greater Manchester, give control over the housing budget and allow a look at the social care budget, so that local people would take decisions locally. A lot of the criticism, including from my hon. Friend the Member for Wigan (Lisa Nandy), is that nobody has been consulted about a mayor for that process, but let us look at what the combined authority was faced with. All those local authorities—Labour, Lib Dem-led and Conservative-controlled—believed that more decisions should be taken locally, which, incidentally, would also lead to more efficient services. The Government’s position is that they are willing to hand over control of that money but that because a lot of those services, particularly transport and skills, are provided at a county level, there should be an elected mayor. One could either recreate the Greater Manchester county council, which used to deal with many of those services, or have an elected mayor, and the Government prefer an elected mayor. The position facing the leaders of the 10 authorities was: do we accept this—and we wanted this kind of thing when I was leader of Manchester city council, a long time ago —accept what is offered by the Government and plug the hole of the democratic deficit, or do we not?

[Lisa Nandy]

I am grateful to my hon. Friend for raising this issue about the mayor. He says it is a directly elected mayor but, unfortunately, it is not; the mayor that is envisaged will be appointed immediately and will serve until 2017, or possibly 2019, without facing an election. In the meantime £13.5 million-worth of public money has been spent and, according to Ministers, there are currently no plans for public involvement or scrutiny in this process.

[Graham Stringer]

I do not disagree with my hon. Friend about that, although we do disagree on other parts of this devolution. The gap between what we have now and an elected mayor is too long. Appointing a mayor is almost a contradiction in terms; mayors should be elected and then they should take the responsibility that the electorate give them, having stood on a manifesto. I would prefer the 10 leaders, who do have an elected mandate, to continue. Having an appointed mayor is a halfway house—a solution that is not really a solution—and it would be better to move earlier to an elected mayor and not have an interim situation. Having made that criticism, I do not think it spoils the whole broth—the essential elements of the decentralisation.

The next part of the decentralisation that seemed to cause some difficulty to some of my hon. Friends, and to some other right hon. and hon. Members, is the devolution of the health budget, so that health and social care can work together in Greater Manchester and deliver better services. When it was announced on the “Today” programme—six days ago, I believe—the presenter said, “This will mean that local councillors will get their grubby hands on the health service.” That represents not only an appalling statement by a supposedly neutral BBC presenter, but an attitude of contempt for local democracy. There is absolutely no guarantee that when locally elected councillors, working with the clinical commissioning groups, get together the service will be better, but the expectation must be that it will be, because when decisions are taken locally, the decisions are usually better. That is not always the case and it is not inevitable, but usually when people of good will try to make things better and they can see the detail on the ground, we get a better service.

I have been fighting the Healthier Together proposals in Greater Manchester, which are all about bringing care for the elderly and the ordinary services together. I have been fighting them not on principle, because the principle of what they are saying is right, but on detail and procedure. In every case, we go back to NHS England. I would much rather discuss my disagreements over detail with people who are elected locally and with local clinicians than with some distant bureaucrat in London. I do not believe that this measure is being imposed; it is being negotiated by properly elected local government leaders. One objection that may be made before a general election—I had better be up front about this—is that Labour councillors should not be sitting down with the devil of a Conservative Chancellor. Well, I think they should. It would be an absurd position if any elected leader of any district or city said, “I will not accept something that I think is good for my area because the person who is proposing it is of a different political colour.”

There are still many details to be decided and some obvious pitfalls. We need to ensure that at least the amount of money that was scheduled to go into the NHS actually goes in and is transferred to Greater Manchester. If that money goes across but there is a deficit, we come back to that most difficult decision—I will finish on this point because I know many Members wish to speak—which is the closure of a hospital. If care for the elderly works in combination with the NHS and many people who should not be in hospital are taken out of hospital, hospitals may have to be reduced in size. If that happens, who would Members like to take that decision: somebody sat in Whitehall or locally elected people who have to face the electorate daily? That is the toughest decision, and I would prefer it to be made by local people, which is why I am pleased to support the proposals for Greater Manchester. I hope that this Government and the next one get more enthusiastic about devolution.

[Several hon. Members]

rose—

[Madam Deputy Speaker (Mrs Eleanor Laing)]

Order. I had every confidence that the hon. Gentleman could add 10, get over the hour and get to the right number, but I appreciate that he had a lot to say. Let us try a bit harder for the 10 minutes.

17:07

[Robert Neill (Bromley and Chislehurst) (Con)]

It is a pleasure to follow the hon. Member for Blackley and Broughton (Graham Stringer). I agree with his analysis of the right approach to Greater Manchester, but I will come back to that in a moment.

First, let me address the broad thrust of the report, with which I very much agree. It is an excellent report, the Chair of the Select Committee made an excellent speech on it, and I struggled to disagree with anything in it. I hope that all parties will take the report on board.

We have a real opportunity to create a cross-party consensus on this matter. All too often in this House, devolution is spoken of in terms of legislative devolution —of votes for laws and structures. That is critically important, but without significant fiscal devolution, it is effectively meaningless. If we can get around that point, we would have a sensible basis on which to build. We need to recognise that this Government have done a lot already. I congratulate the Secretary of State and his team—I might be seen as being a little biased here—on having reversed what was nearly a 50-year trend of centralism.

The hon. Gentleman made the point that, when he was elected, there was much more control, and that is true. I was first elected to a London borough in 1974—I would like to think that I lied about my age, but I did not. By that stage, power was already being removed, and that had been a process throughout the post-war period. Therefore credit must go to this Government for having reversed that trend so significantly. I am talking here about the power of general competence, removing capping and replacing it with the consultation of residents via a referendum, which is an important step forward, and breaking down ring-fencing. Those are important and significant changes. I particularly welcome the further steps that were taken around devolution to Greater Manchester. I am a little disappointed that one or two Members were carping about the approach.

I am a firm believer in the idea that, from the point of view of local government, the first thing to do is to get the power devolved. For heaven’s sake, do not worry about the detail until the power is devolved. It is the tendency to allow the best to be the enemy of the good that has bedevilled local government in its relations with central Government over the years. It has been all too easy for the civil servant or the Minister, with every respect, to be told, “The local authorities cannot agree among themselves, so it is better that we keep the power centrally.” The same is said to Members of this House. However, if the principle of devolution and the transfer of power and finances is agreed, local authority leaders have the ability, with good will and common sense, to sort out the exact arrangements for themselves. In that respect, the leaders of all parties in Greater Manchester have been markedly more pragmatic than those in this House sometimes show themselves to be through the arguments that they deploy.

[Lisa Nandy]

Does the hon. Gentleman agree with me, as somebody who is a Member of Parliament in Greater Manchester, that the public might also be involved in the conversation between local authority leaders and the Government that he has talked about?

[Robert Neill]

Local authority leaders are elected via their local authorities. We can talk about the time frame for having a directly elected mayor, but I am afraid that we are again allowing process to get in the way of the principle of fiscal devolution, which is the most important thing. When one looks at local authority systems in other countries where there is significantly more financial devolution, of which France is a very good example, the public participation at elections is significantly higher because people realise that their vote makes a difference. That is the main objective that we should be aiming for.

As a Greater London Member of Parliament, I also welcome the devolution package that was announced by the Chancellor and the Mayor of London. It does not go quite as far as the Greater Manchester package, but it is extremely valuable. It is worth noting that it was a Conservative Mayor and the Labour-led London Councils that agreed, in a pragmatic fashion, on a set of 10 principles for how London local authorities would use the extra devolved powers and the even greater devolved fiscal power that was recommended in the London Finance Commission report, which I hope will be adopted by the next Government—I hope of my complexion—in the next Parliament. Again, the hugely important point to make is that when local government is pragmatic, it delivers better.

The Prime Minister gave me hope in his speech in June. The Financial Times reported him as saying that

“devolving power and money from Whitehall to the cities…is the future. The debate now is about how far and fast it can go.”

I hope that in the next Parliament, we will see a significant increase in the amount of public spending that is devolved. We have made a valuable step, because some 70% of council income is now raised locally. That is a big improvement on where we were. However, council income is not the same as total spend.

That is why the pooling arrangements between health and adult social care in Greater Manchester are an important step forward. Anyone who has served on a top-tier authority, whether it is a county, a unitary, a London borough or a metropolitan district, will know that adult social care is one of the principal cost pressures. The ability to align it more closely with the health service makes obvious sense financially and in terms of better and more effective service delivery. As has been observed, local authorities are often better placed to nuance the delivery arrangements to reflect the needs of the population.

The Chairman of the Communities and Local Government Committee made a perfectly fair point about where we should go from here. I think that we should start to look at the further devolution of property taxes. That is the most obvious thing to do. We have made a start with the local retention of the increase in the business rate. He was kind enough to make observations about the methodology that was put in place. He was perfectly right that we always envisaged the methodology as being capable of improvement and refinement. It would be easy to increase the locally retained share. I welcome the fact that the Secretary of State talked at the Local Government Association conference last year about raising it to the high 80s or 90s. The Prime Minister has spoken in similar terms. Personally, I hope that we will move to make all the additional business rate retained in the next Parliament. We should aim, within not too short a period, to re-localise the whole of the business rate.

[Mark Pawsey]

My hon. Friend is making a strong case for increased devolution, which is exactly what we heard on the Select Committee. He has been a Minister in the Department, so what does he think are the obstacles within the institutions of government that prevent that devolution from taking place? Why has it not happened before now?

[Robert Neill]

There are two things. One is a practical matter that we must address seriously, which is the need for equalisation arrangements. As the Chairman of the Select Committee fairly said, we have a model already in place that could be adjusted to deal with that. I therefore do not think that we should allow the need for a measure of equalisation to fall in the way of further devolution. The question of risk of local authority failure is sometimes raised, but I think that it is overstated, first because of the public law constraints that are already there and, secondly, because in truth if we believe in devolution we must accept that sometimes, very occasionally, a local authority will fail. That is what democracy is about. Allowing failure as a result of a democratically elected body’s decision, provided there are sensible reserve powers that can be put in place, as the Chairman of the Select Committee properly and sensibly set out, is a sensible way forward. We could easily deal with that.

The final problem is the institutional inertia of a system in which so much has come to this place over the years that initiative at a local level is often stifled. The most talented in politics and business see London and Westminster as the centre of operations rather than driving forward their careers at a local level. In France, it would be perfectly natural for the mayor to be a significant political player. The combined authorities in France referred to by the Chairman of the Select Committee work exceptionally well and have done for some 30 years. They have delivered on social care and on major infrastructure improvements. That is a sensible and pragmatic way forward that can be tweaked to reflect areas and on that basis there is no reason why we cannot also consider similar but not exactly identical arrangements for the shire counties. My hon. Friend the Member for Folkestone and Hythe (Damian Collins) is absolutely right that they are capable of significant devolution too.

This is a most important debate. I am glad that we have had some thoughtful and constructive speeches and it is a good report. This is a piece of work that we must continue in the new Parliament, as we cannot continue with the current set-up. The Government are entitled to congratulations for what has been done so far, and I hope that it is work on which we can build.

17:17

[Austin Mitchell (Great Grimsby) (Lab)]

I want to speak as a partial and not wildly enthusiastic supporter of the Select Committee’s report and as a very long-standing advocate for devolution. In 1974, with the late Richard Wainwright, I formed the campaign for the north, back in the days of Redcliffe-Maud, beyond recall, in a first example of the Lib-Lab pact. When the Labour Government had the Prescott proposals for regional government, I was an enthusiastic supporter of the campaign for Yorkshire. It was unfortunate that the then Prime Minister, who was more enthusiastic for invading small countries than he was for giving us devolution, so watered down the proposals that they were not worth voting for. In the end, they were duly not voted for in the north-east.

That is my history of campaigning for devolution, but that does not make me enthusiastic about the caution of the Committee’s report or about the proposals for Greater Manchester. They seem to me to be something of a deathbed repentance by a Government who have centralised continuously in a country that is over-centralised already. We must be one of the most over-centralised countries in the world. We are more over-centralised than Monaco or Luxembourg, two capitals without countries. Cobbett’s Great Wen has always drained ability, money and investment away from the rest of this country and concentrated them on London and the prosperous south-east. That process has gone on for far too long. It has been heightened by this Government and needs to be reversed so that the rest of us can have a chance. It might be a mistake to start building the northern powerhouse on the wrong side of the Pennines—the wet side—rather than the hard-working, intelligent and serious side, but I do not begrudge regional devolution to Manchester, because what Manchester thinks today, Yorkshire certainly thought yesterday, and it deserves better than what it has been given.

What is proposed is not really devolution, but another example of Conservative tinkering with local government, which has been going on for so long. Their attitude to local government reform is like the hokey cokey—you put your whole self in, your whole self out, and then you shake it all about. They created the metropolitan counties, then they abolished them, and now they are bringing them back. They created Humberside, then they abolished it, and now they are effectively bringing it back.

What we need is serious thinking—the Select Committee has begun this, but it really needs to be done by both parties and into the next Parliament, when it will become more relevant—about what the framework of devolution should be and what exactly should be devolved. We need to think about what powers should go to local government, because we have to transfer them down from the centre to where the people can handle and control them democratically, because they know their needs far better than Whitehall does. That should be the process of devolution, but this is not it. This is another piece of tinkering, with an elected mayor—an eventually elected mayor, as my hon. Friend the Member for Wigan (Lisa Nandy) pointed out—sitting on top like the fairy on a wedding cake, with inadequate powers and no democratic control. That is not real devolution for Manchester. We have to think seriously about what real devolution is.

What is proposed is a coalition of 12 boroughs with minimal powers and financing and an elected mayor. I do not know whether the £6 billion will be enough to cover the cost of the health service or just enough to distribute blame downward when things go wrong, but certainly the powers and the financing are inadequate. There is no elective democratic accountability, because control is indirect through the coalition of boroughs, and that is not effective control at all.

If what is proposed is devolution at all, it is asymmetric devolution that will end up creating a patchwork of devolution, with different powers all over the country, a kind of one-winged bird that can flap but cannot fly. As other Members have pointed out, it leaves out large areas of the country. For example, the best and most important part—Grimsby—has nothing to gain from it. Huge rural areas such as Lincolnshire and north Yorkshire have nothing to gain from it. They all want more power, but they are outside this new system.

Therefore, we must first ask what we can learn from this Manchester situation for Yorkshire and then ask how we can create a national framework for devolution for those areas that want it. I am not saying that devolution should be forced on people, because it is more important to the north and to Yorkshire than it is to the south, to which all blessings flow anyway, but we must ask what example we can set that other areas will want to follow. What can be the framework for English devolution to turn this unitary state, in which some powers have been devolved to Scotland, Wales and Northern Ireland, into one of devolution all round in which Yorkshire can show the way? We could call it “devo-tyke”—I do not see why not, if we can have “devo-Manc”.

On the table at present are proposals for city devolution—city regions for Sheffield and Leeds and a big Newcastle-Tyne-Tees area—plus minimal proposals for Humberside. I would like to see greater Yorkshire as a devolved region. That would include Sheffield, Leeds and both sides of Humberside, because our interests on the south bank lie to the west rather than to the south. They lie with Yorkshire, and we are Yorkshire’s gateway to Europe. Greater Yorkshire would provide a firm, strong base which would be able to take on a variety of powers and functions over which we could have an elected government, which would control those functions for the purposes of the people—in other words, democratic accountability and democratic control—and which should have revenue-raising powers to finance what it wants to do.

A bigger area can take a broader view and be a firmer and more effective base than a smaller, more parochial area. That is the way we should go. The current proposals are a beginning, but no more than a beginning, which we need to follow up and build on in the next Parliament so that power passes from London, to which it has been so remorselessly transferred over the years, to the regions and to the people so that they can control their own destiny. In that way we will get the synergy and energy of democratic control of government functions in the north, where it belongs.

17:26

[Mr John Redwood (Wokingham) (Con)]

We are debating devolution in England, but if we are to have more devolution in England, we first need devolution to England. We must make sure that there is an English level of decision making for the strategic matters, and English Ministers who can then decide which matters could be properly devolved within their strategic framework.

If we take the case of transport, it is predominantly or wholly an English Department, yet it is treated as if it were a Department of the Union. But our Ministers have no control or influence over the roads of Northern Ireland or Scotland. They deal predominantly with English issues. In the new looser federation that we are going to create in the next Parliament, we need to identify the need for England to have rights and opportunities that equal these powers that the other parts of the country have already gained or will gain in the more generous devolution settlements now being offered to Scotland, Wales and Northern Ireland.

There is a good case for the English Transport Department to devolve some more powers to unitary, county and borough councils in the country. On the issue of railways, for example, we have a very expensive nationalised industry, which decides on the track, the track maintenance, the track investment and the principal train routes and is responsible for the signalling and most of the stations. These are very important issues for local communities. They are massive budgets, but I found it extremely difficult as a local representative to get the ear of Network Rail and to get the right attention paid to the railway line in my area, even though my voters are producing a great deal of tax revenue which is going into Network Rail. A case can be made that there should be more devolved power to counties, boroughs, unitaries and maybe even to MPs over railway budgets, which can have a very important impact on the face of the town, the nature of the countryside and the commuter and freight services available.

We must be careful not to devolve too much. For the roads system, it is right that there is a strategic highway network of motorways and larger trunk roads which is controlled at the England level, masquerading as the Union level, and that those decisions should be properly taken by an English Minister responsible to this House, spending moneys collected in the normal national way and going through the national budgets. I hope that in due course we will have a proper English devolved budget, just as Scotland, Wales and Northern Ireland do.

In my area, we have a motorway that is a local road, and the council is responsible for it. It is a very useful and good motorway, but it stops at the boundary with Oxfordshire and Reading. Most of us want it to go over the river and on to more useful places as part of our economic growth and development. We are making a huge contribution in our area, with a lot of extra housing and jobs, and we need more road space, but Oxfordshire will not allow us to put a bridge over the river and take the road on to other parts of our burgeoning area and up towards Oxford. That may be a case where a devolved power should be given back. I think that my unitary borough would be happy to surrender control of the motorway in return for a promise from a Government Minister to finish the job and make the motorway go to other places so that it could take more of our traffic. At the moment, a very large amount of traffic has to go through the neighbouring constituency of my right hon. Friend the Home Secretary in the small and beautiful village of Sonning, which has a single-track bridge over a beautiful stretch of the river. That takes a massive amount of commuter and freight traffic that ought to go on a motorway-standard bridge, away from a place of such great beauty, but we cannot do that because of the way in which parts of local government relate to one another. Those are two examples: one where we could devolve more once we had the right powers in England, and one where we might want to devolve less to get a better strategic answer at the national level.

The health service is also primarily or wholly an English Department. It is called the Department of Health, but it should really be called the Department of English Health because its Ministers do not run the health service in Scotland, in particular—although in the recent debates on Scottish devolution some people seemed not to understand that and to think that Scotland’s vote would somehow have an impact on their health service when it has been devolved to the Scottish Parliament. If we are going to pursue devolution, English Ministers should ask the question that my right hon. Friend the Chancellor has asked, and started to answer, in the case of Manchester. If it makes sense for Manchester to have more control over health budgets at local authority level to try to deal with the big border issues between social care and health, it must make sense for other parts of England to have exactly the same type of thing.

All my life in active politics and in government, as a local government Minister and in other roles such as Secretary of State for Wales, I was very conscious that there were always border issues between the UK-wide nationally controlled health service and local government, dealing with social care. Both sides were prone to blame each other. The health service would say, “We could get our costs down and put more people through our hospitals if only local government did a better job on providing care facilities for people who should leave hospital,” and local government would say, “Our budgets have been starved because so much money goes to health, but perhaps that isn’t the right priority, because it is a lot more expensive to keep someone in a hospital bed for a few extra days when they do not need the urgent care any more than it is to provide them with good care in a care home without all the medical staff and additions that you have in a hospital.”

There has always been that problem, and I look forward to seeing the more detailed work and the results of the negotiations, because it would be good if there could be a new solution. Once again, however, we need to make sure that the right things are defined at the England level, because it is still meant to be a national health service, although there are now going to be several different national health services because of Scottish and other devolution. In relation to England, I think that a lot of our voters in England want there to be national standards, a national level of service, national protocols and national agreements, so quite a lot needs to be settled by an English national Minister sitting in the English Health Department. However, we can see whether we can devolve certain things. It would be really good to have a new and novel solution to the cross-border issues between social care and health care.

The third Department that is already clearly an English Department is the Department for Communities and Local Government—the origin of this debate. The Select Committee has produced an interesting report to influence English local government Ministers. They must make sure that they have unrestricted English control over English local government, and I am sure that many of them, in this Government and successor Governments, will be interested in exploring the big issue of how many more things can reasonably be left to councillors and their serving officers to decide. I look forward to there being more things and I have suggested one, namely railways, but we need to be realistic and understand that people also want a national agreed level of service. They also want to know that, when a decision in one place has a consequence on other places, people above the fray of the locality will be making the decisions. Not all the decisions will go downwards; some will have to go upwards.

Above all, we need justice for England. We need English votes for English issues and to make sure that England has a voice and can decide the things that apply only to England.

17:35

[Lisa Nandy (Wigan) (Lab)]

I congratulate my hon. Friend the Member for Sheffield South East (Mr Betts) and his Committee on such an important report and on giving us the opportunity to have what I hope will be a much more thoughtful, detailed and nuanced debate about recent devolution proposals.

I want to reflect in particular on what is happening in my area of Greater Manchester. I am a passionate advocate of real devolution to people, communities and those who serve them. Before I entered Parliament, my experience of almost 10 years working with children and young people in some of the most challenging circumstances told me that we will not deal with the most intractable problems this country faces if we do not move away from a deficit-based model of dealing with people towards an asset-based model. That requires decisions to be taken much closer to people, with greater local accountability and people and their communities in the driving seat on decisions that affect them, their families and their lives.

I particularly welcome some of the decisions that are being devolved to Greater Manchester, including on transport, skills and the Work programme. Such issues are critical to solving our intractable problems. One of the great fallacies is that it is possible to solve local problems at national level. Too often, national policy fails not just because it does not identify the right solutions, but because it does not define the problems properly. That is because those problems differ not just from region to region, but from local area to local area, within constituencies as well as among them.

Devolution gives areas such as mine in Wigan and across Greater Manchester a considerable opportunity to draw on our strengths. It will give us the chance to move away from handing out big block contracts to the small number of private companies that are currently the only ones able to bid and compete for them, and instead to work with the charities and community groups that are the lifeblood of our local area and to draw on the talent throughout regions such as mine.

Given how incredibly centralised this country is, it is incredible that there has been so much local and regional success over the years. A particular example from my own region that springs to mind is when, finally, after years and years of pushing and lobbying, the regional development agency, working in partnership with Government and the media companies, managed to get the BBC to relocate to MediaCity. That has been an absolutely stunning success for many of my constituents and the region. It has brought a completely fresh perspective to the way in which our public debate is conducted, because the guests and presenters now come from a much broader area than a small few miles around the capital.

I am very concerned, however, about what has unfolded in Greater Manchester over recent months. The people of Greater Manchester have been treated with contempt, because they have been cut out of the process. Real devolution is based on the principle of consent, not contempt. My hon. Friend has said that one of the reasons he is so committed to the agenda is that it can re-energise the democratic process. I absolutely agree with him, but the problem in Greater Manchester is that, from the very day the process was leaked to the media and then announced at a press conference, the public have been entirely cut out of the conversation. I want to say, particularly to Ministers, that that cannot be allowed to continue. There is a significant opportunity to bring benefits to areas such as mine and others across the country, but not if the public continue to be cut out of the conversation.

We were denied a referendum about this plan, which came out of the blue, to impose a mayor who will be appointed, not elected, for between two and four years. Cutting the public out of the conversation was not a good start. When the people of the city of Manchester were given a referendum a few years ago, they said that they did not want an elected mayor, although the result was quite close, but my constituents in Wigan have never been asked that question. They may have voted for it, and if we had been given some detail about how the mayor would be held to account, I might even have campaigned and voted for it, but the truth is that we have been cut out of the conversation.

We will continue to be cut out of the conversation because the Government have confirmed to me that not only will the mayor be appointed immediately and rule until 2017, but that the term may be extended until 2019 by the same local authority leaders who negotiated the deal. That reminds me of Tony Benn’s five questions for the powerful, the most important of which are:

“To whom are you accountable? And how can we get rid of you?”

He said:

“If you cannot get rid of the people who govern you, you do not live in a democratic system.”

It is 2015, not 1815: people deserve the right to elect the politicians who wield enormous power over their lives.

I am not confident that the situation is going to get better. In a series of recent written answers, the Minister has confirmed that no thought whatsoever has been given to the ongoing scrutiny by or involvement of the public in these decisions. I had to ring three Departments to get the Greater Manchester health and social care devolution memorandum of understanding”, before the Government realised that it had been published by the first Department I had rung and pointed me to an obscure place on its website to find it. The document says this about April 2015, which is next month:

“Process for establishment of shadow governance arrangements agreed and initiated”.

My question is: by whom and with whom? From the document, it looks as though local authority leaders, clinical commissioning groups and NHS England will make up some kind of shadow governance arrangements, but we do not have any more details, even though it is all supposed to happen in the next four weeks. I must tell the Minister that he should be very concerned about that, given that every hon. Member has referred to the importance of local democracy and accountability. We have 10 local authority leaders and a huge range of appointed officials from CCGs and NHS England, with an appointed mayor, but no room for direct elections for another two to four years.

The consultation by the Department for Communities and Local Government ran for three weeks from the middle of January to the beginning of February. There were 12 responses, of which 10 came from the local authority leaders who negotiated the deal in the first place. I must say to my hon. Friend the Member for Blackley and Broughton (Graham Stringer) that I very much share his concerns about the Healthier Together process: we were both heavily critical of its consultation process, but that sort of public engagement makes Healthier Together look like an absolute dream.

This consultation asked for the impact on communities, but according to the Minister’s own Department, it was not advertised, so there were no responses from the public. The document did not make a single mention of health care or the national health service; yet one week after it closed, we were told via a leak to the Manchester Evening News and then in a press conference that billions of pounds of public funding were being transferred. In the meantime, £13.5 million of public money—our money—has been spent on transforming Manchester town hall to get ready for the new bureaucracy. This is not the way to build power-sharing with people.

[Mr Redwood]

Would the hon. Lady agree with all this if the new mayor were directly elected to a quicker timetable?

[Lisa Nandy]

The right hon. Gentleman has helped me brilliantly to segue into what must happen next. The truth is that for Greater Manchester, this is where we are. We have been handed this model and, as many hon. Members have said, there are opportunities for the region if we can get it right, and it is important that we do not make the same mistakes again. The Government tell us that they are committed to rolling out devolution arrangements around the country, and we must get that right for the people of Greater Manchester. We need clarity about the role of local councillors who currently do not have the tools and resources they need to hold the leadership to account. When we devolve power upwards to combined authority level, the issue becomes even more pressing and critical. The local councillor is the link between people in my constituency on different streets and different communities around Wigan, and decisions that are taken miles away in Manchester town hall. As someone recently said to me in Wigan, “If I can’t hold any of these people to account, it’s the same to me wherever they are sitting.” We need clarity about the role of local councillors, and we must ensure that they have the tools and resources they need to hold power to account.

The memorandum mentions the principle of subsidiarity. I share a commitment to that, but we deserve to know what it means in practice. For example, there are huge benefits to be had from rolling together health and social care, and in my local area in Wigan that is what the local authority and CCGs have been doing because we face a wide variation in health and social care challenges across Greater Manchester. Mine is an older borough that contains lots of people with chronic health conditions and real geographical challenges—we are one of the biggest boroughs in Greater Manchester. The risk is that when we level up those decisions, we end up with serious problems because we ignore pressing issues in different local areas.

We should have, and deserve, direct elections if people are to make decisions that affect our lives, particularly if we are to concentrate power in the hands of one individual. A potential four years before anyone gets a say over who takes those decisions is ridiculous and shows utter contempt. Many people have said that this is not a London-style mayor. They are right, because at the very least the Mayor of London is directly elected and has to account to the Greater London authority, in public, for their decisions. There are no plans in Greater Manchester for similar scrutiny arrangements, which shows a complete and utter lack of respect for the public.

Finally, there is a huge gap around civil society, and I understand why this debate looks like a conversation between national and regional politicians from which the public have been excluded. Charities, community groups—nobody has been spoken to or consulted, and they do not have access to the information and data they need to hold power to account. The risk is that we are replicating the worst features of national Government at regional and sub-regional level.

This is not a binary choice between unaccountable power structures in London and unaccountable power structures in Manchester. We can do so much better than that: real accountability and real challenge in the system; meaningful tools to hold people to account; no more backroom deals; and real power sharing. The people in my region are our best asset. Let us build our public services with them, not without them.

[Several hon. Members]

rose—

[Madam Deputy Speaker (Mrs Eleanor Laing)]

Order. Again I implore hon. Members for 10 minutes to mean 10 minutes more than are currently on the clock—it is easy to count.

17:48

[Martin Vickers (Cleethorpes) (Con)]

I will do my best to keep to your time limit, Madam Deputy Speaker.

This has been a welcome and interesting debate, and I repeat the thanks to the Select Committee for its report which contains helpful and useful recommendations. It is always welcome to take part in a debate with my own MP, the hon. Member for Great Grimsby (Austin Mitchell), although I was slightly concerned about the number of times that he referred to Yorkshire rather than Lincolnshire.

The Scottish situation has developed with more and more powers being devolved. That is perhaps regrettable in many ways, but we can be thankful that it has spurred on the debate about how we devolve powers in England. Like most of my constituents, I regret the fact that the settlement with Scotland now means Scottish MPs have far too much influence over decisions. I welcome the comments of my right hon. Friend the Member for Wokingham (Mr Redwood) in that respect.

There has been considerable devolution under this Government, and my own area has benefited greatly. Like the hon. Member for Great Grimsby, I was present a couple of weeks ago when the Hull and Humber region growth deal was signed. There is no doubt that that is particularly beneficial.

I note that paragraph 15 of the Select Committee report states:

“The power to raise, retain and spend money locally—fiscal devolution—is back on the political agenda. Local government wants more of it.”

I agree on unleashing more and more powers to our cities and towns. I emphasise the word towns: too much rhetoric in recent months has referred to cities. People in towns up and down the country feel somewhat left out. Towns make a major contribution to the national economy, and constant reference to cities has not been helpful.

On the present structures of local government, I am not entirely sure that they are particularly well designed to cope with more powers and responsibilities. In many cases, local government is in fact more efficient than central Government—the squeeze on budgets in recent years has delivered many necessary efficiencies. I was a local councillor for 26 years; 14 of those were on a district council and 12 on a unitary council. I wholly recommend the latter: unitary authorities are vastly superior. We have to recognise that district councils are dying. They are sharing more and more of their powers and responsibilities—joint chief executives, shared officers and shared delivery of services—and we have seriously to ask whether there is a role for the two-tier system in the future. My view is that a move to unitary top-tier authorities, supported by parish councils, is the way forward.

Reference has been made on a number of occasions to combined authorities. I share the misgivings of others that they are not particularly democratically accountable. I have yet to find an elector who has said to me, “I’m not going to vote for so-and-so, because I don’t think their contribution to the combined economic authority has been particularly helpful.” The reality is that we need a figurehead at the head of a unitary authority. I have always been in favour of elected mayors—I stress elected. A clearly identifiable person responsible and directly accountable to the electorate is the best way forward.

The report states:

“Enhanced local democracy offers the best possibility of a step towards addressing the challenges of the wider democratic deficit caused by the over centralisation of England.”

I am not, as I said, entirely convinced that combined authorities are the way forward. The relationship between unitary authorities and parish councils is crucial. Unitary authorities are the best way of creating a clearly identifiable structure that the electorate can identify with. We have all experienced the confusion in the minds of voters about who is responsible for various services. We have to recognise that people identify with their towns or villages and their counties. However, in many cases, counties, such as my own county of Lincolnshire, are geographically too large to cope with one local unitary authority. Authorities with 70, 80, 90 or 100 councillors are far too large. All parties have difficulty recruiting good-quality candidates to be councillors. We need slimmed-down authorities.

In my own area—the hon. Member for Great Grimsby referred to this—we suffered County Humberside for too long. We were dumped in it against the wishes of just about everyone in the locality, and suffered it for about 20-odd years. I have concerns about its possible re-creation, as we seem to be edging towards that. I acknowledge the hon. Gentleman’s comments, but I point out that it is the view of the Labour authority that a combined authority, which I would regard as a stepping stone to a larger unitary authority, should be to the south of the Humber. I think any edging towards the re-creation of Humberside is totally inappropriate. We seem to have an inferiority complex on the south bank about Humberside. The reality, however, is that the strength of the local economies, voluntary organisations and the councils themselves on the south bank are the equal of those on the north bank. Having said that, because of overwhelming public opposition, I do not think that is the way forward.

I urge the Minister to address the issue of perhaps edging towards more unitary authorities with elected mayors, and perhaps even to commit a future Conservative Government to moving in that direction.

17:56

[Simon Danczuk (Rochdale) (Lab)]

It is a pleasure to follow the hon. Member for Cleethorpes (Martin Vickers). I congratulate my hon. Friend the Member for Sheffield South East (Mr Betts) on both his speech and his excellent chairmanship of the Communities and Local Government Committee. Wherever he or I end up after the general election, I shall be pleased and privileged to say that I served under his chairmanship. It is something I have learned much from.

Some people dream of becoming a politician because they love the fame and the glamour; some because they picture themselves as the next Gladstone or Churchill; and some, let’s face it, because they quite like the sound of their own voice. But I was different. I came into politics because I want fiscal devolution—that is the reality. It may come as something of a surprise, but it is true. Fiscal devolution sounds like an obscure and impenetrable topic, but for me it speaks to one very simple principle: that decisions should be taken as close as possible to the people who are affected by them. Belief in fiscal devolution has therefore always come down to simple faith: faith in local people, faith in local decisions and faith in local elections—and a healthy scepticism of central Government and Whitehall.

It seems that the public share that faith. The Local Government Association asked members of the public who they trusted to make decisions about their local areas: local councillors, MPs or Government Ministers. With apologies to those on the Front Benches, I can reveal that 72% of the public went for their local councillors, 11% for MPs and only 7% for Ministers. I can reassure hon. Members that I do not believe this is a reflection on their competence or integrity. I certainly do not think I have become less trustworthy since I left Blackburn council and took my seat in this place, although some hon. Members may disagree. It is not about personalities at all; it is simply that local people prefer decisions to be taken by their local representatives on the ground, rather than by remote mandarins in the capital. Many of my constituents would not understand why people who could barely point to Rochdale on a map should be taking decisions about their town. It is an understandable frustration. In principle, I want to see decisions made at a local level. The public seem to agree, but all hon. Members know that decision-making powers count for very little when they are not accompanied by control of the purse strings.

I have two young children. Often it is fun to let them make decisions about where we should go or what we should do, but I would never dream of giving them my credit card, because that is where the real power lies. For too long, central Government have treated local government as a wayward child—happy to devolve some powers, but never letting go of the credit card. I can understand that instinct. After all, it is not so long ago that a quarter of the world was quite literally run from this postcode. It must be quite a wrench for civil servants to consider giving up the power they have left. However, just as we left behind the era of empire, we should now abandon the era of the mighty central state.

Despite progress over recent years, the UK remains one of the most centralised countries in the world. Even here in London, our most autonomous city, only 7% of the taxes raised are kept by the Mayor. That compares with 50% in New York and 70% in Tokyo. In fact, the economies that are prospering at the moment, from the USA to Germany, are those with high levels of local and regional devolution. That is a point made in our report, which finds a connection between fiscal devolution and economic growth. Devolution is an idea whose time has come, and it is time that this country joined the modern world.

If devolution is the aim, how do we get there? That is the question, and I believe that the Committee’s report provides a good place to start looking for answers. Hon. Members will be familiar with the recommendations, but I would particularly like to lend my voice to the idea that we need to balance the desire for local authorities to keep as much money as possible with the recognition that money must also be fairly distributed across the whole country. I would also endorse the idea that fiscal devolution should happen within the local government structures that already exist. We do not need an English Parliament, creating yet another layer between people and power.

I do not want to go into detail about which spending powers should be devolved; that is for another time. What I would like to do is try to set out some broad principles. First, the process of devolution should not be uniform. The British state has often seemed obsessed with rigid uniformity, when the opposite is often more appropriate. If we look at Scotland or London, we see that devolution can often be quite messy. Instead of smooth sides, there are often sharp edges, but that is not something we should be too worried about. The mess of devolution breeds the innovation and energy that are the drivers of growth and prosperity. Nor should we be concerned if devolution happens at different rates in different areas.

That brings me to my second major point. With great spending power comes great responsibility. We need to make sure that the governance is in place to cope with new powers. This is something I have real concerns about. The Select Committee has recently seen a number of local authorities regarding serious failings, not least Rotherham council. One has to ask whether we would devolve more power to such an authority, yet there are clearly some local authorities, such as those in Greater Manchester—or Greater Rochdale, as I would prefer to call it—that want and deserve more control. The key will be to make sure that local councils can handle the powers that are devolved to them and that we manage to monitor their performance.

That brings me to the recent issue of devolved NHS spending in Greater Manchester. I should say from the start that I welcome the increased governance being given to the city region through a directly elected mayor, although I understand the concerns raised by my hon. Friend the Member for Wigan (Lisa Nandy). Elected mayors are something I have long campaigned for. However, I have a number of reservations regarding the latest announcement. The key to devolution is that the right powers are given to the right level at the right time. I have real questions about both the level of government and the timing.

Devolution on such a scale should be part of a long process and kept separate from party politics. To make such an announcement in the middle of an election campaign seems irresponsible and makes me question the motivation behind the decision. It seems to me that the announcement was designed to show that the Chancellor can appeal to northern cities in a way that some of his colleagues clearly cannot. The decision should not be driven by personalities, but by clear evidence and arguments. This cannot simply be a case of securing the legacy of Howard Bernstein, the chief executive of Manchester council; it must be about much more than that. Finally, I am worried that the decision will mean yet another structural revolution in health provision in Greater Manchester, when what we need is a focus on outcomes. This example goes to show that someone can be committed to devolution, as I am, but also cautious about going too far, too fast.

To conclude, I am sure that there will be disagreement in this House in the coming years about fiscal devolution. People will question individual settlements, powers and decisions; however, I hope our report shows that we can have those disagreements within a framework of consensus about the principle behind it. Personally, I favour a plan that is ambitious but also gradual. I do not want to see huge amounts of power and money thrown at local authorities that are not ready for it. That would not be good for local government or for the principle of devolution. I want to see a pragmatic approach that goes as fast as we dare, but does not overreach what is possible. I am not clear exactly how that will look, but I am comfortable with this unknown. The process needs to be organic, which will mean some confusion at points, but I am clear about what kind of country we will have once we devolve more fiscal powers: a country that is more open, free, democratic and prosperous. That is why we should all back this report.

18:06

[John Pugh (Southport) (LD)]

May I begin by apologising to you, Madam Deputy Speaker, and to the Chair of the Committee for missing the start of this debate? I shall read the Chair’s wise remarks in Hansard with intense concentration tomorrow. We have kept to the general rule of estimates day, which is a bit like “Fight Club”: the one thing we do not do on estimates day is mention the estimates, such as the £750 million on the Order Paper, which, like everybody else, I shall ignore.

The devolution we find easiest is devolving trouble—cuts, problems, hard choices. Wherever there is a good story, such as money for school dinners suddenly, we in this place rush to take the credit in one form or another. Behind it all there seems to be no genuinely guiding principle or absolute constitutional demarcation. In effect, we yo-yo between having ring-fenced, dedicated funds and giving direction where we want credit and there is money, and going back in harder times to rolling everything into some incomprehensible formula, when we want to dodge blame for cuts that are in the offing. In other words, we have no principle that we are following. We let councils make big, painful decisions on social care and housing, and then we fiddle around with their bins when we want to. I therefore warm to the idea of a genuine constitutional settlement—or at least a concordat for each Parliament—that lets each level of government know what it is supposed to be doing.

The assumption, shared across the Chamber in this debate, is that local government should try to do more and central Government should try to do less. That means in effect that local government has to have enhanced power and hopefully—and importantly—capacity. Clearly that is not generally the case, because some units are simply far too small, and even big units such as mets and unitaries have to band together to do new and bigger tasks. A solution might be a wholesale local government reorganisation. That is a brave choice that few Governments consider for long, so instead we have devolution on demand. However, we do not quite get it by demanding it; it has to be what the previous Government used to refer to as “earned autonomy”.

In effect, what happens is that central Government lays down some sensible conditions, such as evidence of co-operation, economic independence, officer ability and so on, and occasionally some silly conditions, such as elected mayors. But however central Government lay down those conditions and whatever they are, there are three hitches with the end result. First, it creates a patchwork quilt across the country, which some Members clearly do not think is a problem. Secondly, it leaves some areas completely and utterly orphaned—what, I ask often, will happen to places such as West Lancs, which are not in any city region whatever? Thirdly, it means that the whole issue of fair funding becomes a bigger nightmare and even more imponderable. As the right hon. Member for Wokingham (Mr Redwood) said, England still loses out at the end of process by comparison with the regions of Scotland and Wales.

There is one unexpected consequence, however, and I want to draw people’s attention to it today. It appears to me that existing local authorities are not best shaped to deliver the new agendas. Their boundaries often have little relationship with economic, transport or strategic priorities. My own borough of Sefton provides quite a good example in that it has hugely different priorities at either end. It has a seaside town at one end and Liverpool’s major dock at the other. The future of one end is bound up with the River Mersey and Liverpool, while the other end looks to the River Ribble and Lancashire.

How can one authority with limited representation on the city region fight for the interests of both? In a sense, it is diluted. Sefton has made a virtue of its oddness, which is down to two town halls, although at one stage it had five. It has often boasted that diversity is its strength. I have constantly pointed out that that did not work particularly well for Yugoslavia. Sefton has had two boundary reviews that have clearly indicated the severe problem here.

I conclude that if there is to be devolution on demand, there must be scope for local government reorganisation on demand, but there has been little scope for that recently. Were a clear case to be made, I think it could be positively helpful. We must have a permissive approach; otherwise, devolution—in the wrong shape and with the wrong organisations—will end up just as unpopular as centralisation.

18:11

[Andy Sawford (Corby) (Lab/Co-op)]

It is a pleasure to respond to this interesting and constructive debate. In common with other hon. Members, when I am out and about visiting school and community groups, groups of elderly residents and so forth, I am often asked what it is like in Parliament and people share their disdain for how Parliament behaves, particularly at Prime Minister’s Question Time, for example. I regret that members of the public do not so often encounter debates such as this one, in which interesting contributions are made from all sides and a measure of agreement is reached about devolution, along with some significant differences about how to devolve power and how to engage the public in the debate.

The report that has provided much of the focus of today’s debate makes a strong and passionate case for further devolution in England. I found it telling that none of the submissions to the inquiry opposed further devolution. The case for localism in the UK is overwhelming, and the case for further devolution within England—the great unfinished business of Labour’s long-term commitment to devolution across the UK—is overwhelming, too.

The report identifies a shared consensus that we have reached a “high water mark” of powers maintained in Whitehall, and I agree with that assessment. The report identifies three key features through which changes can be made to the way in which local government is funded and to the powers it possesses. I agree with the first recommendation that

“any system of devolution should recognise need while balancing incentives for local areas to build up their economies.”

The debate has provided an interesting airing of the tension in the report between those two aspects, which I commend to anyone looking at how best to grapple with it. I agree, too, that

“power should be devolved to groups of local authorities, covering a recognisable large-scale area, that can demonstrate how they share, and work together as, a functioning economy.”

Thirdly, I agree that

“a strong, locally agreed governance model”

is required, as my hon. Friend the Member for Rochdale (Simon Danczuk) strongly suggested.

The report, I think rightly, does not prescribe a particular governance model, unlike this Government who are determined to force metro-mayors on English cities—without, as my hon. Friend the Member for Wigan (Lisa Nandy) said, any proper public consultation. In fact, following public consultation some years ago, that very idea was rejected.

We broadly welcome all three proposals. I congratulate my hon. Friend the Member for Sheffield South East (Mr Betts), the Chairman of the Communities and Local Government Committee, and the other members of the Committee, many of whom have spoken, on their excellent work in producing this report, and indeed on all the excellent work they have done over this Parliament in scrutinising the work of the Department for Communities and Local Government as thoughtful advocates for localism.

I am disappointed that we have had to wait eight months for the Government’s response to this report. Why are we having this incredibly important debate just four weeks before this Parliament dissolves? Could it be that the Government have something to hide? It is noticeable that on the equalisation and redistribution recommendations, the Government response does not refer at all to the importance of having a needs-based element to the funding.

This Government have paid lip service to localism, but the rhetoric has not often matched the reality. Far from feeling empowered by this Government, councils feel emasculated. They have been consistently attacked by the Secretary of State, who vents his opinion on everything from the level of reserves councils should hold to how often the bins should be collected. At the same time, councils have been subjected to the biggest cuts of any part of the public sector, despite being recognised at the beginning of this Parliament as the most efficient part of it.

There is much talk of savings and efficiency, but we know that the reality in many communities around the country is of councils trying to do their very best, but now having to make serious cuts that impact on people’s lives. Core funding reductions in local government are an average real-terms cut of 40%, but the cuts were not spread fairly. Some areas have had huge cuts. Reductions in spending have hit areas with the highest needs hardest, and projections for 2017-18 suggest that by that time there might be a difference in cuts of nearly £1,000 per head between the least and worst-affected communities.

On many occasions we have debated the figures that the Government use to illustrate local government spending power, so I shall not focus too much on them today, other than to say that no one and nobody—not the Local Government Association, not the National Audit Office, not the Select Committee and not the Public Accounts Committee—believes that the Government provide a true reflection of the levels of resource available to local authorities, of the deep unfairness of those cuts and of the challenges that presents. This provides an important context for understanding devolution, but let me say that I think it makes the case for devolution even stronger. We must be thoughtful about how we implement it at a time when councils are under such huge strain.

I cannot agree with the assessment of the hon. Member for Cleethorpes (Martin Vickers) that the districts are dying. I see districts doing incredible work. My own local authority of Corby is doing great things in our local area—building new council houses, backing regeneration and working with me to improve the local labour market by trying to cut bad practice by agencies. Our districts are doing great work, as are all levels of local government, but they are faced with really difficult times.

What councils want, aside from a Government who treat them with respect, is fairer funding, to which Labour is absolutely committed. Councils also want help with longer-term funding settlements, as the report makes clear, so that they can plan ahead. Labour is committed to that, too. Thirdly, they want more devolution of power and funding so that they can work with other public services to get the most out of every pound of public funding.

[Mr Redwood]

Does the hon. Gentleman’s party have plans to devolve the right and the duty to raise more revenue by local government? If so, by which taxes and what powers?

[Andy Sawford]

I am not surprised that the right hon. Gentleman wants to tempt me down that path. What I am setting out today is a very radical plan for devolution of £30 billion of funding. Of course we recognise that there is a case for fiscal devolution, and we will allow local authorities and combined authorities to retain 100% of business rates. That is a welcome step forward in fiscal devolution, with which the right hon. Gentleman’s party is yet to catch up.

A Labour Government will introduce a proper recognition of needs into the funding formula—we are committed to that. How can it be right for the 10 poorest authorities to be hit hardest, while some authorities such as Wokingham have seen their budgets increase? The right hon. Member for Wokingham (Mr Redwood) will doubtless have different conversations with his local authority, which has benefited from a budget increase, from those of many other hon. Members whose areas have faced huge cuts.

We will take steps to allocate resources much more fairly across local government. Over the medium term, we will give councils greater ability to make long-term plans by introducing multi-year funding settlements. This is supported by local government: we have heard those calls; we support them and we will act. We will devolve power down to local councils and communities—devolving decision making on transport investment and on bus regulation, for example. If those powers are good enough for people in London to exercise at a more local level, they are good enough for the rest of the country.

The public will know that Labour has a strong track-record of devolving power. We passed the Scotland Act 1998 and the Government of Wales Act 2006, and only a future Labour Government will be committed to an English devolution Act that will reverse a century of centralisation. Members have talked about the great early years of some of our cities, which provided pioneering solutions to the problems they faced in the 19th century, but also about how those powers subsequently drifted back to the centre. We intend to reverse that.

Our devolution Act will secure devolution for local communities in England, transferring £30 billion over five years and passing down power and resources for transport, skills, employment support, housing and business support. That is three times as much money as the current Government have said they will devolve in the next Parliament. We will also devolve business rates to city and county regions and combined authorities so that they retain 100% of the additional money that is raised, which constitutes an important fiscal devolution.

The current Government’s talk of devolution relates to limited powers for a small number of larger cities. I agree with those who have called for devolution throughout the country, to all the villages, towns and cities that we represent and that want an opportunity to take more powers and funding so that they can make decisions locally. For all the rhetoric about empowering northern cities, it is worth reminding ourselves that areas such as Liverpool and Manchester—some of the most deprived areas with some of the greatest needs—have faced the biggest cuts in the country. There is nothing empowering or localist about taking with one hand and giving far less back with the other. As was pointed out by my hon. Friend the Member for Wigan, we need to involve people in this devolution, because they currently feel that decisions are made too far away from them. It is important for communities to be involved as we hand over power and resources.

We will join up commissioning between councils and the NHS through health and wellbeing boards to provide “whole person care” by means of a care budget for people with long-term conditions such as disability and frailty. I shall say something about the Manchester proposals in a moment. We will devolve commissioning for employment and skills so that those services are properly joined up. My hon. Friend the Member for Wigan said she felt that the public had been cut out of the conversation in her area, and that consent was needed for this devolution. She was absolutely right. We want to ensure that, as authorities come forward and explain how they will work together to take their new powers and make the most of them, they engage the public in that conversation.

I was extremely disappointed when my local county council announced its intention to explore a partnership with two neighbouring county councils. That did not make much sense to me, but I was more worried by the fact that neither the districts nor the public had been engaged. That is no way in which to build public consent for a radical devolution of power.

We have heard from some Members who represent county areas. I agree with their criticism that the Government have no plan for devolution to counties and county regions. They seem to have a blind spot when it comes to huge areas of the country. If we are given the opportunity to change the position, we will do so. We will offer economic devolution to every part of England.

The Government’s announcement that they will devolve the NHS budget to local authorities in Manchester is particularly topical, and many Members have been exercised about it today. After five years of making savage cuts in council budgets and five years of fragmenting and privatising, the Chancellor of the Exchequer has waited until five weeks before the end of the current Parliament to endorse—in many respects—Labour’s plan to integrate the NHS and social care. Moreover, as we heard from my hon. Friend the Member for Wigan and other Members, he has rushed into it without a proper consultation. The Government are really not doing this in the right way.

A key issue on which Members have commented is motive, which is what makes many of them suspicious. A Government who have, for instance, forced the part-privatisation of ambulance services on people in Greater Manchester are not a Government to be trusted with our NHS, and we question their motive when they make an announcement like this just before an election. Local leaders in Greater Manchester—who have worked with this Government and, in the interests of the people whom they serve, will work with the next—have said that they want an opportunity to develop NHS and social care integration. The leader of Manchester county council, for instance, played a big role in Labour’s local government innovation taskforce, which has championed ideas about the proper integration of health and social care.

The people of Greater Manchester want to be able to get on with the job of developing whole person care. However, before any final deal is signed, important questions about the new arrangements need to be answered. For instance, how much money is on offer, and will it be enough? Members have rightly speculated on the possibility that this is another example of the Government’s devolving the axe by handing over any responsibility for ensuring that a proper NHS and social care service can be provided in an area, and allowing local leaders to take the blame when that service does not meet public expectations.

We must all be vigilant in the face of the danger that the Government are trying to devolve an NHS funding crisis that they have themselves created, not least through their cuts in social care. Labour will offer a better deal. We will offer the NHS and councils more money, raised through our new mansion tax That will allow them to build an NHS that starts in people’s homes, looking after them there and ending the culture of 15-minute care visits. There will be money for the extra nurses, GPs, home care workers and midwives whom we need. Rather than creating new bureaucracies—that is a worrying aspect of the new structure—we will move quickly to devolve more power to councils and councillors.

Democratic accountability is very important, and local leaders must be seen to be in the lead, but we must also think about what additional means of holding people to account may work in different parts of the country. We believe that local public accounts committees could provide a way of including civil society. As other Members have said, we want to engage the public directly, but we can also engage them through civil society organisations.

[Mr Betts]

I agree with my hon. Friend that many questions about the deal in Greater Manchester need to be asked and answered, and locally elected Members of Parliament should be involved in that process. Is it not crucial, however, that if we are to join up health and social care, there should be accountability to local elected politicians for the spending of the money? Is that important issue not embedded in the whole process?

[Andy Sawford]

I entirely agree. There is an opportunity here. NHS England and the Department of Health at Richmond house are not necessarily providing the strongest form of accountability to the public when things go wrong. Any Labour plan for real devolution will be intended to create a much stronger feeling that those who provide local public services are accountable. That applies especially to our NHS, which we value so much, and which we need to protect from five more years of a Government who want to underfund, break up and privatise it.

Under this Government, people in cities and towns throughout our country are feeling the pain of the longest cost of living crisis in a century. That is why we need a Labour Government to spread power and prosperity across England, so that the economic recovery benefits all working people and not just a wealthy few.

18:27

[The Parliamentary Under-Secretary of State for Communities and Local Government (Kris Hopkins)]

I welcome the debate and the report, and I share the central tenet of the speech that we heard from the hon. Member for Sheffield South East (Mr Betts). I agree that the role of local government and local leaders must be at the heart of any debate about English devolution.

Many reports have followed the Select Committee’s report. The Government published a Command Paper on the implications of English devolution in December, and we have now published our response to the Committee’s report. One reason for the delay in its publication is the publication of a number of other reports which we thought it appropriate to consider. However, I should have liked our response to be published earlier, and I apologise to members of the Committee for the fact that that was not possible.

I welcome the Committee’s support for the basing of decentralisation and further devolution on existing structures and groups of authorities rather than on a top-down reform of structures. Local areas are best placed to make decisions about joint working and stronger partnership. We will take further steps, which will include encouraging the establishment of combined authorities when they are appropriate.

We have undertaken the biggest ever transfer of powers away from Whitehall through devolution deals, to grow the economy in a balanced way and enable Britain’s cities and communities to be engines for growth. As several Members have pointed out, this is the first Government for a long time to halt the constant move towards centralisation and provide a path back to the empowerment of local people. We have removed centrally imposed regional policy, replacing it with local enterprise partnerships which define their own boundaries and priorities and bring together local business leaders with locally elected leaders. We have given local areas a very substantial share of increases in their local tax base, with areas keeping up to 50% of the increases they deliver in business rates and all council tax plus the new homes bonus, and we have made it clear that we want to go further. The Prime Minister has said a Conservative Government would enable authorities to retain some 66%, and the Secretary of State has said he would like to see 90% retained by 2020.

[Mr Redwood]

Where health expenditures and money is being offered to local government and local government representatives, what powers will they have to switch money either out of the health budget into the social care budget or out of the social care budget into the health budget?

[Kris Hopkins]

As I understand it, the accountability for the spend of that money will remain with the NHS and it will be a negotiated position with the local authority. As has been said, the key thing is that the money associated with social services will be driven and directed by local government, but the idea that local authorities, the NHS and the clinical commissioning group come together and shape the services required for their local people is a major step forward. The better care fund has been a path to some of this, but this step itself is fundamental.

I would like to point out some of the things that we have achieved. We have abolished the inspection regime and targets for councils. That regime was extremely costly and imposed huge burdens on local authorities. We have reduced ring-fencing for councils and have created new community rights, giving local people a greater say in shaping their community. We have enabled more decisions about social housing to be taken locally, making the system fairer and more effective, and we have reformed the planning system to cut red tape and interference from central Government, shifting the focus for local authorities to report to their local communities. Through neighbourhood planning, we have helped local people to play a strong role in shaping the areas in which they live and work and in supporting local development proposals.

We have also taken more ambitious steps through growth deals and recent devolution deals further to incentivise local leadership and growth. Some 28 city deals have been negotiated with the largest and fastest-growing cities and their wider functional economic areas outside of London. We should also recognise that 39 local enterprise partnerships will have £12 billion of local growth funding devolved to them over the next five years, with £6 billion having been agreed under the first wave. They are having a direct impact. They are locally led and locally driven, with local people making choices about where the money should be spent—on better roads and public transport, greater support for local businesses to train young people and enhance skills, faster broadband and more homes.

[Annette Brooke (Mid Dorset and North Poole) (LD)]

I wholeheartedly agree with the Minister about the benefit the growth funds are bringing to LEPs, but does he share my desire that there should be more democratic accountability for the spending of all this money?

[Kris Hopkins]

LEPs are a partnership between the local authorities and the business leaders who sit inside those groups, and it is up to them to negotiate that position and drive out the delivery of those services. I am confident that these emerging relationships—some of them are very strong at the moment; some still have a way to go—are giving a massive return on the limited amount of money we have to spend as a consequence of the economic situation we found ourselves in.

[Mr Allen]

I congratulate the Minister and his Government on the list of the measures to decentralise power that he has read out, but does he accept that any Front Bench may come forward with such a record of achievement in this area which could be imperilled by some future Government, and that the answer is to build in the rights and responsibilities of local government, and to entrench them beyond easy repeal on the whim of some future Government?

[Kris Hopkins]

The hon. Gentleman makes a good observation about the opportunity for a Government who are not as positive and decentralising as this one to follow another path, but I think that if local authorities are bold and understand what they want and ask for it, we will deliver that for them. I think that once they have been empowered they will be very reluctant to give up those powers.

The Government have built on the success of these approaches relating to enterprise zones and city deals to negotiate devolution settlements with cities. In November the Chancellor announced that Manchester will be taking advantage of greater devolution of powers and shortly will have its own directly elected, city-wide mayor.

[Lisa Nandy]

Will the Minister give way on that point?

[Kris Hopkins]

I did anticipate that.

[Lisa Nandy]

I am grateful to the Minister for giving way. I question his use of the term “shortly” to mean two to four years, but I also say to him that if this agenda is genuinely about empowering people across entire city regions, it is important to get the language right. He just talked about cities and about Manchester, but my constituents in Wigan would not recognise that that relates to them. It is important that we get the language right and make sure people understand that this sort of deal could, if we do it right, bring significant benefits to city regions, not just to cities.

[Kris Hopkins]

I think I got off lightly, because I appreciate that language is important when we are talking about identity. Certainly, the Greater Manchester area has been extremely engaged in this issue for a long time, and I welcome the path it has taken. I just want to correct the point about two to four years. Elections are anticipated in 2017, and we want to see that. Primary legislation needs to be put forward to deliver that. The models for then holding the mayor to account will be debated in this House. There will be an opportunity for every Member who is re-elected to participate in the process, and I am very confident that we will have a democratically held to account mayor driving forward a very extensive range of services, including transport, housing, planning, skills, policing, welfare support and, of course, health.

Other cities have been engaged in this, including Sheffield city region, and there are continuing talks about Leeds. We believe there is scope for decentralising more funds, but the key is making sure that local authorities have an opportunity to grow their own local economy, and we have assisted in that through business rates retention and the new homes bonus.

[Graham Stringer]

Select Committee recommendation 49 starts:

“Growth in one area of England does not mean reduced growth elsewhere.”

Frankly, I did not understand the Government’s response to that recommendation. Can the Minister confirm that he agrees with the Select Committee recommendation, and that growth in one area will not mean less borrowing powers or less resources for another part of the country?

[Kris Hopkins]

That is certainly not my intention. My intention is to see every part of the country grow. The Chancellor has gone out there and supported the northern powerhouse, and we have gone to every corner of this country to make sure that this works. At the end of the day, however, growth will be locally led and individual areas will need to be supported in this process, but many will seize the opportunity to grow their local economies.

We have heard some good contributions from Members and I want to comment on them.

[Mr Betts]

I read out a quote by the Prime Minister, which I presume the Minister agrees with, about proposals for increased fiscal devolution in Wales. So far, he has not talked about fiscal devolution at all. The Prime Minister said:

“That means those who spend taxpayers’ money must be more responsible for raising it. This is devolution with a purpose”.

Does the Minister agree with that in principle, and if so, if it applies to Wales, why does it not apply to Manchester, London or Sheffield?

[Kris Hopkins]

It applies to England at this moment. We have given local authorities the ability to raise money, to drive their local economies and to build more houses and be rewarded for doing so. The decisions associated with that expenditure are now being taken at local level.

The tone of the debate has been really good, despite one or two glitches in some contributions. On the whole, people realise the enormous power that local government has and the massive contribution that it makes to society and to delivering public services. The report produced by the hon. Member for Sheffield South East recognises that the movement towards more decentralisation and ensuring that people at local level are more accountable is the way forward. That is certainly the desire of this Government.

My hon. Friend the Member for Folkestone and Hythe (Damian Collins) talked about a northern powerhouse, and about his desire to see his county step up and seize the opportunity for more devolved powers. He was right to say that. In contrast, the hon. Member for Corby (Andy Sawford) seemed to believe that it was up to central Government to come up with a plan for a local area. It is not about that. It is about groups of local authorities having the confidence to follow what they see as the route to economic growth. It is about their making those choices and coming to us. Our door is open to the authorities that make those choices.

My hon. Friend was right to recognise that the move from the better care fund towards more integration in our social care is extremely important. There is an issue with demographics, given the enormous growth in our elderly populace, and we have a responsibility to ensure that we deliver quality services efficiently. He also talked about waste, and about community housing policy. Those are two key areas in which local authorities can make decisions.

The hon. Member for Blackley and Broughton (Graham Stringer) brings an enormous amount of knowledge and expertise to the House and I congratulate him on his 30 years of public service. He has faith in local government; in fact, he has more faith in local government than he does in central Government. I, too, have huge confidence that local government can deliver what is needed. He mentioned the use on the radio of the term “grubby hands”. I, too, thought that that was appalling. People working in local government give up a huge amount of their time to make a contribution, and they do so out of choice. I applaud the work of many local authority leaders and councillors, and I think that the BBC should apologise for that comment.

The hon. Gentleman was right to observe that the health deal was negotiated—and will be negotiated further—with local leaders. I have confidence that the democratic process will win, and that people will seize these opportunities. The hon. Member for Wigan (Lisa Nandy) has pointed to a lack of involvement by local people in that process, but the councillor who is the leader of Wigan is a local person, and those 10 people came together in a pragmatic way—as my hon. Friend the Member for Bromley and Chislehurst (Robert Neill) said—and made a choice about this. We will also put in place primary legislation to ensure that there is a directly elected representative. The journey in Manchester has not happened just in the past four weeks. It is not something that has appeared just before the general election. It has been going on for a decade-plus.

[Lisa Nandy]

Can the Minister tell me why the three-week consultation that he ran in January did not mention the NHS once?

[Kris Hopkins]

The deals associated with the health authority still have a long way to go. The principle of joining the services together is the right one, and I have confidence that those 10 local authority leaders will be accountable for that devolved spend.

I know that the hon. Member for Great Grimsby (Austin Mitchell) is a passionate Yorkshireman. He talked about “devo-tyke” and “devo-Manc”, and he was right in what he said. As a Yorkshire MP myself, I recognise—as do Opposition Members—that there is an opportunity here. Sheffield has seized it and Leeds is having a conversation about it. This is up to local leaders. I remember this conflict from the time when I was a local leader: it is not easy for the different tiers of government to come together as one body, regardless of politics, to make choices about how to grow their economies and ensure that those in their most deprived areas can change their lives and become prosperous. I applaud the work of the all-party parliamentary group on Yorkshire and North Lincolnshire, which has come up with some really good ideas on how to achieve these aims.

I want to go back to Wigan, just for a moment. I do not want to rub it in—well, actually, I do want to rub it in a bit, to be quite honest!

[Heidi Alexander (Lewisham East) (Lab)]

Get on with it!

[Kris Hopkins]

I am getting on with it. The hon. Member for Wigan said that the new plans were not the way forward, but let us just think about the journey that we have made. We have moved from having an unelected regional development authority, a top-down obsession with centralisation and a target-driven system to a situation in which we have individuals making choices about the path that they want to take to economic success. That is the right way to do it. This is not about creating more bureaucracy or creating more politicians for the sake of it; it is about local people making a choice about devolution and seizing those powers and opportunities. That is a principle that everyone in this House can support.

Question deferred until tomorrow at Seven o’clock (Standing Order No. 54).

Ministry of Defence

Defence and Security Review (NATO)

Monday 2nd March 2015 Commons Chamber

[Relevant Documents: Third Report from the Defence Committee, Towards the next Defence and Security Review: Part Two–NATO, HC 358, and the Government response, HC 755.]

Motion made, and Question proposed,

That, for the year ending with 31 March 2015, for expenditure by the Ministry of Defence:

(1) the resources authorised for use for current purposes be reduced by £618,573,000 as set out in HC 1019, and

(2) further resources, not exceeding £426,760,000 be authorised for use for capital purposes as so set out, and

(3) a further sum, not exceeding £426,834,000 be granted to Her Majesty to be issued by the Treasury out of the Consolidated Fund and applied for expenditure on the use of resources authorised by Parliament.—(Mel Stride.)

18:49

[Rory Stewart (Penrith and The Border) (Con)]

I should like to begin by talking about the House of Commons Defence Committee’s report. The key element in the report, and in what I hope will be my relatively brief remarks, is that Russia poses a significant and substantial threat to Europe. That argument has been made in great detail by the Defence Committee and, in the months since the report was published, it has become increasingly evident that it is correct.

I remind the House that, while we were working on the report, we had a statement from the Foreign Secretary that he had been assured by Lavrov that Russia would not invade Crimea. Four days later, Russia invaded Crimea. We then heard a number of specialists and analysts say that Russia would not go into eastern Ukraine, but it then did so. We also heard people say, after the Malaysian airliner was shot down, that that would be the moment at which Russia would back off because it was embarrassed by what it had done. Russia did not back off. People then made it clear that Russia would not extend its activities to Mariupol or Odessa, but as we can now see, separatists with Russian support are moving towards those two cities.

What does this mean for the United Kingdom, the Ministry of Defence, NATO and defence spending? The House of Commons Defence Committee’s report focuses on two things: the conventional threat posed by Russia, and the threat that we describe as next generation warfare, ambiguous warfare or the asymmetric threat posed by Russia. Although those two things are related, it is worth analysing them separately.

On the conventional threat posed by Russia, the report argues that, through its Zapad exercise in 2013, Russia showed its ability to deploy almost 70,000 troops at 72 hours’ notice. The current estimate is that it would take NATO almost six months to deploy that number of troops. Russia has also displayed its ability to fly nuclear bombers to Venezuela and to exercise for a full amphibious assault on a Baltic state. It has upgraded its nuclear arsenal and it is committed to spending $100 billion a year on defence. All of that is taking place in the context of a decline in NATO defence spending.

[Dr Julian Lewis (New Forest East) (Con)]

I thank the Chairman of the Committee for giving way so early in his speech. One of the reasons that he has had to consider only two aspects—namely, conventional and unconventional warfare—is that our strategic nuclear deterrent is still in place, and if either the Opposition or the Conservative party has anything to do with it, that will remain the case. Does my hon. Friend agree that it would be madness to think about disposing of our deterrent and ending our continuous at-sea deterrence? Is it not strange that there is not a single Member present who represents the party that proposes that we should abandon that continuous at-sea deterrence—namely, the Liberal Democrat party? [Interruption.] Oh, the hon. Member for Colchester (Sir Bob Russell) has just appeared. I hope that he disagrees with his party on that matter.

[Rory Stewart]

That is an invitation to go into exactly this theme: in terms of responses to the Russian conventional threat, we have planned, for 20 years, for fighting enemies in places such as Iraq and Afghanistan. We have planned on the basis of such expeditionary warfare. The planning assumptions at the base of Future Force 2020 or the strategic defence and security review were about being able to put 6,600 people—or 10,000, in the past—into the field and maintain them there for enduring stability operations. We have not really thought about taking on an enemy such as Russia. In the national security strategy, the threat of what we have seen done by Russia was marked down as a tier 3 or bottom-level probability.

That means a lot of things: it has implications, of course, for nuclear weapons; it has implications for many capacities that we have got rid of in Britain over the past 20 years, such as our ability to exercise at scale —in the mid-1980s we used to be able to exercise with 130,000 or 140,000 people, whereas last year we were exercising with about 6,600 people, at a time when Russia was exercising with about 70,000; it has meant that we got rid of our significant capacity in wide-water crossing—that is engineering; it has meant a reduction in armour, because we did not expect to be fighting tank battles; and, more relevantly to the question posed by my hon. Friend the Member for New Forest East (Dr Lewis), it has also meant that we need to think much more seriously about ballistic missile defence, and about chemical, biological and radiological and nuclear.

[Mr John Redwood (Wokingham) (Con)]

I accept my hon. Friend’s Committee’s recommendation that as a minimum we have to spend 2% of GDP, but even at that level how many of these missing things could we put back into our capabilities?

[Rory Stewart]

That is a very good question, which I hope to be able to deal with towards the end of my speech. The assumption of spending 2% of GDP on defence, which is essential because we organised an entire NATO summit around the idea of doing that, is of course the hope that as the economy grows, defence spending will grow and we can make the necessary five-year planning, which will return confidence to the armed forces and allow us to make some of these investments. The question is a good one, because we would still face significant constraints in relation to Trident and to operating our aircraft carrier. If we wanted to make significant investments in restoring armour capacity, even 2% of GDP would be pushing it.

[Mr Jim Cunningham (Coventry South) (Lab)]

I apologise for coming in late. About 30 years ago, when Denis Healey, as Defence Secretary, looked down the road at the defence needs, he said that modern warfare for the future would rely more on conventional weapons than nuclear weapons and that sort of thing. On the hon. Gentleman’s other point, although we may not have planned for any war with Russia, I imagine the United States has, because it plays “war games”, for want of a better term, and examines various scenarios. What does he think about that? Does he know anything about that?

[Rory Stewart]

The hon. Gentleman rightly says that we have not been focused on Russia, and the United States certainly has more capacity, but it is striking that even the US significantly reduced its capacity to deal with an adversary such as Russia. There has been a lot of criticism within the entire Pentagon administration about the focus on counter-insurgency warfare, and a man called Colonel Gentile ran a huge campaign to try to get the US to focus more on conventional threats. Britain has got rid of a lot of our Russian analysis capacity. One thing my Committee’s report pointed out is that we got rid of the Advanced Research and Assessment Group, which did the basic Russian analysis, we sacked our Ukraine desk officer and the defence intelligence service reduced its Russian analysis. The same has been happening in the United States, although it is now building this capacity up rapidly, but when we go to Supreme Allied Commander Europe and look at the American capacity, we see that that Russian capacity is being built up from a very low base again, which is troubling.

I do not wish to speak for too long, because I know many Members wish to contribute, so let me return to the basic framework of my argument: conventional; unconventional; and what we should be doing. I have set out the conventional, so what should Britain be doing? The Committee believes we should be looking to exercise at a larger level, so we should begin to return to some of the kinds of exercises we did in previous eras, which involve exercising at least at a divisional level. Encouragingly, NATO is beginning to look at an exercise at a level of 35,000 people—we would like to see more of that, and we would like politicians and policy makers to be involved in that. We would like to see all-armed exercises. We are going to be looking closely at Norway 2018, which seems to be a big opportunity to do this.

We have to look carefully at this very high readiness taskforce. One thing the Committee recommended was the setting up of a deployable force under SACEUR like the allied rapid reaction corps, which could go out and respond rapidly within 72 hours to a Russian threat. It was a very good sign at the Wales summit that that commitment was made, but the details need to be improved dramatically. The framework nations are struggling to provide 5,000 people and they need to produce one brigade standing up, one currently in exercise and one standing down. We have not yet seen what is happening with the enablers. We need to see whether they will be able to move forward with ISTAR––intelligence, surveillance, target acquisition and reconnaissance—and whether they are going to have the cyber-capacity connected. Here is another question, perhaps for the Minister: France has committed as a framework nation, but are we certain that it is committing its troops uniquely to SACEUR or are we in danger of a situation in which people are double-hatting? In other words, are the French retaining the ability to deploy their brigade to Africa when it suits them, so that this very high readiness taskforce will then be a second-order call?

But it is on asymmetric warfare that we need to focus most of all, because although Russian tanks crossing the border into Estonia would be a high-impact event, we estimate at the moment that it is a low-probability event. It is not one we should ignore, because of course were Putin to do it, we really would not know what to do. Were Putin to roll tanks across and take over even a mile or two of Estonia, NATO would be in a very serious problem. As the Swedish general Neretnieks has pointed out, it would be very difficult—it would require very considerable political will—to get Russia out of that situation. But the most likely move is asymmetric warfare first.

[Ms Gisela Stuart (Birmingham, Edgbaston) (Lab)]

On that point about capacity, it is interesting to note that in 1989 there were 5,000 US battle tanks stationed in Europe, whereas now there are 29. The capacity is not there, even if we look just at what the Americans are providing, never mind our failure to provide.

[Rory Stewart]

That is a significant point. It is true that, ultimately, the theoretical NATO capacity dwarfs that of Russia, but a lot of this stuff is extremely difficult to deploy; many nations are very reluctant to pay the money required to exercise; a lot of this money is absorbed in pension schemes; and our problem is that we are defending an enormous, multi-thousand-mile border, where Russia could, should it wish, cause trouble all the way from the Baltic to the Caucasus. We have to deal with that entire area, which may be very difficult to do, even with the 3.3 million troops we currently have in NATO.

[Mike Gapes (Ilford South) (Lab/Co-op)]

The hon. Gentleman referred to Estonia. Clearly, under article 5 of the NATO treaty all the other 27 member states would have an obligation to respond to an armed attack on Estonia, but there is a level of ambiguity, given the hybrid warfare that the Russians are engaged in and have been engaged in—cyber-attacks and others. Given that Putin does not necessarily wish to invoke a major military conflict, how does NATO deal with those hybrid attacks?

[Rory Stewart]

The hybrid attacks are exactly what I was getting on to: the asymmetric and next-generation warfare attacks. As the Labour former Chair of the Foreign Affairs Committee has just pointed out, the conventional attack is a low-probability, high-impact event. Much more probable is this asymmetric, hybrid warfare. In other words, we are more likely to find cyber-attacks of the kind we saw in Estonia in 2007, and separatists popping up claiming that they are being abused or that minority rights are being abused in places such as Narva, in eastern Estonia. As we saw, 45% of the Russian population of Latvia supported the Russian occupation of Crimea in a survey at that time. So what are we supposed to do? The answer is: it is really difficult and we absolutely need to raise our game in three areas. As has been indicated, those are cyber, information warfare and special forces operations.

[John Woodcock (Barrow and Furness) (Lab/Co-op)]

I thank the hon. Gentleman for giving way. The Defence Committee, which completed its report on deterrence just before he assumed the Chair, made it clear that in the event of a cyber attack we should be prepared to say to a potential adversary such as Russia, “We will not necessarily wait for 100% proof before we enact counter-measures.” We should do that despite the fact that it might have tried to create some uncertainty and ambiguity over the exact emanation of such an attack.

[Rory Stewart]

The hon. Gentleman is absolutely right to raise that point about cyber-attacks. Crucially, very few of us in this House—I certainly include myself in this—understand cyber in detail. We are taking it on faith that we are developing a significant cyber-capacity. It is extremely difficult for us to be confident about what we are doing in this regard. I have two questions on cyber that I would like to put to the Minister. One is to do with NATO’s cyber-capacity. The members of the Committee visited the cyber-centre in Estonia and discovered that there were only two UK personnel posted to that site. It was very difficult to be confident about what deterrent effect that kind of cyber would involve.

My second question is to do with doctrine. Are we prepared to threaten a cyber response as a way of deterring a Russian cyber-attack? In other words, if Russia were to mount a cyber-attack against a NATO member state, would we respond with a cyber-attack in kind?

[Sir Gerald Howarth (Aldershot) (Con)]

I agree with everything my hon. Friend has said, particularly with regard to the importance of cyber. He will remember that in the SDSR 2010 one of the Secretary of State’s “up arrows”—areas in which we need to invest—was cyber-security, where we set aside £650 million over four years. Part of that was cyber-attack.

[Rory Stewart]

That is very important. The thing about cyber-defence that is difficult for us as a Committee to deal with—given that when we look at cyber we are often told that much of it is the job of the Intelligence and Security Committee—is just how good it is. Clearly, the Government have committed a lot of money to it, but at the same time, many Members come to us having spoken to the Ministry of Defence which is concerned about our cyber-capacity, and are not confident that we have really got to where we want to be or that we fully understand what the technology is.

The second issue is around information operations. It is very clear that the basic problem for Russian minorities in the Baltic states is the fact that they watch Moscow television. We need to ensure that we have the ability to project television into the Baltic states in the Russian language that is entertaining and engaging, that the minorities in those areas are prepared to watch, and that counters propaganda not with propaganda but with the truth. Such broadcasts must provide an objective, truthful and honest conversation about what is going on in the world and, above all, that is able to draw attention to the things that Putin is doing. That means that centrally we must invest in the BBC World Service. We spend a lot of time talking about this, about Russian-language television, but the reality is that we have yet to see the evidence from this Government, or from the United States, that the real investment is being made to create a genuinely watchable, attractive Russian language service that could be watched by Russian minorities around the edge of NATO.

The final and most difficult thing is dealing with special forces, insurgents, “little green men” and exactly the kinds of events that we saw in Crimea and eastern Ukraine. The reason that that is the most difficult of all is that it is a challenge of understanding not only for us and the Ministry of Defence, but also for the Foreign Office and the intelligence agencies. If Putin does something, the first question will be one of interpretation or understanding. He will operate under the thresholds. As the hon. Member for Ilford South (Mike Gapes), who was the Labour Chair of the Foreign Affairs Committee, pointed out, Putin will not initially do something that crosses the article 5 threshold. Let me provide a couple of examples to illustrate the threats. If, for example, the Polish electricity infrastructure were to go down, there might be an immediate claim that it had been taken down by a Russian cyber-attack. Britain would need very rapidly to be in a position to know whether that was in fact the case and to determine how to respond. In order to do that, we would need to have what we currently do not have—namely, the people on the ground in Poland with the necessary relationship with the Polish electricity Minister to get to the bottom of the matter very quickly and to pass the information through to us. We lack intelligence and information at every level from the strategic political level all the way down to the ISTAR level of watching Russian kit moving around.

[Mr Brooks Newmark (Braintree) (Con)]

My hon. Friend is quite rightly focusing on the clear and present threat of Russia, but when looking at asymmetrical war, we should also be looking at the threats from the middle east and considering how to deal with those challenges. There are also cyber-threats from China and North Korea. We should be cognisant not just of the Russian threat but of other areas of the world that pose a direct threat to the UK.

[Rory Stewart]

That provides me with a good way to drive towards a conclusion. As my hon. Friend has just pointed out, the kind of threats that Russia or Putin can bring will be very unpredictable. I will be humiliated by what Putin does over the next five to 10 years. It is very difficult to guess what he will do next. What is clear about Putin is that he has been thinking very hard, since at least 2008, about how to unsettle or unbalance NATO. He will be pulling levers and pushing buttons that we cannot yet anticipate.

I imagine that he will be tempted to do things in relation to Iran—perhaps in relation to the Iranian nuclear negotiations. We have already seen Putin’s very direct contribution to the civil war in Syria through the protection of Bashar al-Assad. We can see his control over the gas supplies in Bulgaria. It is not very difficult for us to imagine how he could cause trouble in Narva, or how he could put a few Spetsnaz troops in a forest in Latvia, just sit them there and wait to see what we do. If we are dealing with threats along that arc, we need to change the way we think in the Ministry of Defence. We cannot rest in the comfortable world we have been in for the past 20 years—imagining that we will have a neat deployment of 6,600 soldiers on an expeditionary warfare campaign, that they will stay there for five to 10 years doing stabilisation operations and then come home. We will have to respond to very nuanced, ambiguous and unpredictable attacks all the way along an arc between the Baltic and, potentially, Iran. In order to do that, we need to invest very heavily in Russian language expertise, defence engagement, and defence attachés in all those countries. The United States currently has three defence attachés in each Baltic state; we have one defence attaché covering three Baltic states. That is not enough.

The Ministry of Defence would not be able tell us whether the defences in Mariupol were adequate to deal with a Russian advance because the defence attaché currently in Kiev is not permitted to travel up to the front line. We need to invest in defence intelligence staff in the Foreign Office. To do that—this is what I will conclude on—we must make this investment of 2% of GDP in defence. We need to do that for many, many reasons.

[Sir Bob Russell (Colchester) (LD)]

I do not want the Chair of the Select Committee to ignore one part of the world. With regard to all the countries that he has mentioned we can act as part of the NATO family, but what about the Falklands? He will be aware that Argentina has not given up its ambitions, but who will support us down in the South Atlantic?

[Rory Stewart]

That is a very significant question. It is definitely worth thinking about in the next SDSR. As the hon. Gentleman points out, many of our assumptions are based on the fact that we will operate with the US coalition, but in relation to the Falklands we cannot be so confident that that will happen.

[Crispin Blunt (Reigate) (Con)]

The figure of 2% is just a number that has been dragged out of the air, but it happens to be the level of our defence expenditure—about 2.07% of GDP. The conclusions of the summit in Wales seemed remarkably similar to the British posture of what NATO’s targets should be. The fact is that Russia has taken a disappointing divergence from the path that we had hoped it was on after the end of the Soviet Union. That is now beyond contradiction, and we are back to where we were in 1977. Regrettably, we should now be preparing for conflict, and 2% does not cut it.

[Rory Stewart]

I am very supportive of the idea that we should be spending even more.

[Mr Andrew Robathan (South Leicestershire) (Con)]

So am I, if I may say so. My hon. Friend is giving an excellent analysis of the situation. At the NATO summit, Britain was at the forefront of demanding that all NATO countries use 2% of GDP for defence spending. I absolutely support the Prime Minister on this. We want to spend 2% of GDP. Personally, I would rather go further and spend more.

[Rory Stewart]

To come to a conclusion, I am giving the four reasons why we need to spend 2%. The first, which has just been pointed out by the former Defence Minister, my right hon. Friend the Member for South Leicestershire (Mr Robathan), is UK credibility. The UK led the push for 2% at the Wales summit only six months ago. We stood alongside the United States and went around every other country at the summit saying, “If you’re going be serious, you have to commit 2%.” We emphasised again and again that we were spending 2% of our GDP on defence and that they should spend 2% of their GDP on defence. That was very important in getting a range of countries to commit to spending 2% of GDP on defence over the next five to 10 years. The first reason why we must do it is simply out of a sense of shame. The honour and credibility of the United Kingdom are bound up in this.

[Richard Drax (South Dorset) (Con)]

The Chairman of the Select Committee is giving a fantastic analysis of the situation. May I add my concern that 2% simply is not enough for the commitments that we will inevitably have? Our forebears fought and died for freedom and democracy. What concerns me even more is that some people do not seem to appreciate that it takes years to get ships and aircraft carriers, and to get groups and battalions reformed and retrained. Once they are gone, if we are called to action we simply will not have the manpower to deal with it.

[Rory Stewart]

That is the second point that I was coming to. The second reason why we have to spend 2% of GDP or more on defence is that we have concrete tasks that we need to perform. There are some real requirements if we are to deal with the new threat. The problem with the threat assessments since the end of the cold war is that they have been done in a vacuum. Now that we can see a threat in the form of Putin, we realise that there are considerable capacities that we need to rebuild. Those capacities cost money, so we need to invest in them.

The third reason is that deterrence is about psychology. Deterrence is about will-power and confidence; it is not just about kit. The 2% is about what Putin thinks of us; it is about whether he thinks that we are serious. Often, we think that the way to deal with a Russian conventional threat is with a conventional response, and that the way to deal with a Russian unconventional threat is with an unconventional response. Of course, the Russians, particularly Gerasimov, the chief of staff, use the phrase “asymmetric warfare”, which means that they understand very well that often one should deal with a conventional threat with an unconventional response and vice versa. One of the best ways of deterring Putin from mucking around either conventionally or unconventionally is to let him see the confidence of that NATO commitment towards 2% of GDP. As he begins to see the exercises, the spending and the increasing confidence of our armed forces, that will act as the deterrent.

That brings me to my last argument for why spending 2% of GDP on defence is central: it will provide a fantastic framework of planning for our armed forces for the next five years. The fundamental problem in defence and foreign affairs is, of course, that the electoral cycles and financial cuts of modern democracies simply do not operate in sync with the realities of the world and its crises.

[John Glen (Salisbury) (Con)]

Is it not also the case that the rigour of the SDSR process needs to do justice to the nature of the threats we face? It should not be an argument about 2% or bust; it should be about correctly assessing the world as it exists today and as it will exist and ensuring that we have the capabilities to meet the threats that will exist over the next 10 years.

[Rory Stewart]

The process will be led—must be led—by the SDSR. The entire problem that we face starts with the fact that the SDSR put the Russian threat down at tier 3. It will be impossible in the system to argue for more defence spending unless the Foreign Office and the agencies agree with our assessment that Putin represents a significant threat. We must make that absolutely central to the entire debate in the House today to establish that we really believe in this threat and that it is not a joke threat; that this is not special pleading by the Ministry of Defence, nor an attempt to sneak resources in by the back door, but that what Putin has done since the moment he entered Crimea—in fact, probably since the moment he entered Georgia—is to demonstrate the reality that to hold the order of Europe, to maintain NATO and to deter future Russian expansion, we must have the credibility, the capacity and the confidence.

To come back to the final point, the 2% will allow us to step away from the political debates and say to the armed services, “Your budget is protected. You can plan over the next five years on the assumption that your budget will rise in real terms. If the economy rises by 3%, your budget will increase by £1 billion a year. You will be able to use that money to make the investments we need, whether in cyber, in ballistic missile defence, in CBRN or—as I have been trying to argue—“in the massive panoply of intelligence, defence engagement and assessment, which allows us to work out what is happening in the world.” It is that which will draw a new generation of soldiers and officers into the armed forces, because they will see that confidence. Above all, it is Russia and our adversaries who will see that confidence and who will see that, at a time when the world is becoming increasingly dangerous and unstable, our commitment to collective security is generous, clear and long term.

19:09

[Sir Hugh Bayley (York Central) (Lab)]

Perhaps I should start by looking at the Order Paper. We are being asked tonight to approve for the current year a reduction of defence expenditure—or, I should say, a further reduction of defence expenditure—of £618 million. I hope that, in his response, the Minister will say on which capabilities the Ministry of Defence was planning to spend at the start of the year have now been dropped. Looking at the second and third paragraphs of the motion, I hope he will also say what additional expenditure there has been this year for capital purposes, for which there is a considerable increase, and operations. How will those additional resources be spent?

The Defence Committee produced a good report before the NATO summit and any sane person would agree with many of the points that the Government made in their response. However, there was a lack of clear commitment and candour in the response on defence spending, which the Chairman of the Select Committee has just talked about.

It has become clear over the past year, if not longer, that we face new and challenging security threats from Russia, which the Chairman of the Select Committee also spoke about. There is not just the annexation of Crimea and the intervention in eastern Ukraine, but a new Russian foreign policy doctrine that reserves to Russia the right to intervene in other states where there are Russian-speaking minorities when the Kremlin believes it is in their interests to do so. There has been a continuity of policy going back to Georgia and, indeed, Transnistria. There are still Russian troops in northern Moldova. We have also, in the past year or so, seen new and complex threats in the middle east from ISIS or Daesh.

In the face of new and growing security threats, we clearly need new capabilities and strategies to deter our enemies and defend ourselves. We need as soon as possible a new NATO very high readiness joint taskforce and we need to be able to deploy it quickly. That will mean that this House must consider how political authority will be given for use of the first very high readiness brigade and the reinforcement brigades.

We need to discuss with our allies how other Parliaments, especially those that have a constitutional requirement for a vote in Parliament before forces are deployed, will ensure that a very high readiness force, to be deployed within 48 hours, can be deployed within that timescale if needed even though their Parliaments cannot meet within that timescale. We will need either some pre-authorisations, as we had in the old days of the cold war, under which SACEUR—Supreme Allied Commander Europe—could mobilise his assets, or acceptance that parts of NATO will move within 48 hours, even if some allies will take longer to make decisions.

[Ms Gisela Stuart]

Given my hon. Friend’s extremely important work in the NATO Parliamentary Assembly, does he think that the House probably has not of late taken sufficient note of the debates at the Parliamentary Assembly?

[Sir Hugh Bayley]

I would always like greater attention to be given to the Parliamentary Assembly’s work, but there is a good crossover of membership between our UK delegation to the Assembly and the Select Committee on Foreign Affairs, the Select Committee on Defence and the Select Committee on International Development. As a result, there is a cross-fertilisation of ideas and I know that colleagues on the Defence and Foreign Affairs Committees who are alerted to particular information through the NATO Parliamentary Assembly meetings have been able to take that information to their Select Committees. There is, of course, movement of information in the other direction, which is a thoroughly good thing.

We need to consider not just how we deliver a very high readiness joint taskforce but how to improve our strategy for dealing with cyber-threats, our response to the propaganda war when it is waged against us and our response to the use of irregular personnel, whether that means little green men or jihadists in the middle east. We must be clear that if we and our allies are going to develop new capabilities and strategies, that will cost money. If we want to improve our defence, we must will the means to do so.

Before the NATO summit last September, the Prime Minister quite rightly called on the majority of our NATO allies who do not spend 2% of their GDP on defence to do so. At the summit, as one can read on page 10 of the Government’s response to the report:

“All Allies agreed to halt any decline in Defence spending, aim to increase it in real terms as GDP grows and to move towards 2% within a decade.”

Some of our allies have responded to that declaration since the summit. Poland agreed on 18 February to increase its defence spending to 2% of GDP by 2016. Romania, through a pact signed between the political parties on 13 January, pledged to reach 2% by 2017. The Czech Republic, while not making a pledge to reach 2%, has pledged to increase its spending from 1% to 1.4% by 2020. Lithuania has pledged to meet 2% by 2017 and Latvia by 2020. Estonia, which is already at 2%, has increased its defence spending slightly to 2.05% this year. Overall, however, western European allies are still cutting their defence expenditure, on average by 2% a year since 2009 according to Jane’s defence budgets global defence assessment. Last year, in 2014, Germany cut its defence spending by 3.9% and we in the UK cut ours by 2.3%. France cut its by 0.8%. Meanwhile, Russia has been increasing its defence spending by some 10% a year for the past five years, a 50% increase. We ought to question why we did not pick that up sooner. No one increases their defence spending by 50% unless they have some plan to use those assets.

We should also look closely at UK defence spending. According to the public expenditure statistical analysis produced by the Government in 2014, at table 4.2, in the year I entered the House, 1992-93, defence spending was £23.8 billion or 3.5% of our GDP. By 1997-98, when there was a change of Government, of course, defence spending had fallen in cash terms to £21.7 billion, and by more in real terms. At that point, it was down to 2.5% of GDP. Throughout the period of the previous Labour Government, defence spending remained at 2.5%. The Ministry of Defence’s statistical analysis shows an increase, but if we remove the increased spending on operations it remained at 2.5%.

[Dr Julian Lewis]

In his last few words, the hon. Gentleman said something that contradicted my memory of events. The point I wanted to make to him was it was often said, particularly by Tony Blair on leaving, that under the previous Labour Government spending had remained roughly constant at 2.5%, if the costs of Afghanistan and Iraq were included. In opposition, we used to criticise that, as we said that it was sleight of hand, so the hon. Gentleman can imagine my embarrassment now that we are in government to find that there is no sign of our sticking to the pledge when we criticised the Labour party in government for massaging the figures.

[Sir Hugh Bayley]

I have had an interesting conversation with the statisticians in the House of Commons Library this afternoon. They provided figures for me in April of last year that showed spending as a proportion of GDP increasing from 2.48% in 1997-98 to 2.81% in 2009-10. Those are the Defence Analytical Services and Advice, or DASA, figures produced by the Minister of Defence. More recently—[Interruption.] I shall come to the point made by the hon. Member for New Forest East (Dr Lewis) in a moment. More recently, the Library has given me the PESA, or public expenditure statistical analysis, figures, which show defence spending at 2.5% at the start of the Labour Government and 2.5% at the end of the Labour Government. I think the difference in the figures is covered by precisely the point that the hon. Gentleman makes. If we include the costs of Afghanistan and Iraq, there is an increase in real terms. If we discount them, there is no change in real terms.

In 2013-14, according to the Government’s figures, spending was at 2.1%. That is counterintuitive. I do not think that many members of the public would recognise that the Major Conservative Government substantially reduced defence expenditure in real terms, that the Labour Government maintained it and that this Government have substantially reduced it, but that is what the Government’s own PESA figures show us.

[Mr James Gray (North Wiltshire) (Con)]

I strongly agree with the hon. Gentleman’s powerful endorsement of the Prime Minister’s commitment to 2% at the NATO summit last September. Has he spoken to his own Front Benchers about whether an incoming Labour Government, if there were to be such a thing, would or would not maintain defence spending at 2%?

[Sir Hugh Bayley]

Yes, of course I have had that conversation—

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. I am going to have to put a time limit on speeches, because we are drifting, and it was suggested earlier that Members should speak for up to 10 minutes. Sir Hugh, I assume that you will soon be coming to the end of your speech.

[Sir Hugh Bayley]

I will crack on quickly, Mr Deputy Speaker.

I have put my name to the early-day motion drafted by the hon. Member for Mid Worcestershire (Sir Peter Luff), which calls for the 2% commitment to be maintained. However, like the hon. Member for South Dorset (Richard Drax), I do not believe that that is enough. I believe that we should be increasing our defence spending as a proportion of GNP. I have of course raised that with Opposition Front Benchers. I seek a commitment tonight from the Minister and the shadow Minister that the strategic defence and security reviews that they would respectively commission, depending on who wins the general election, will be led by concerns about security and will not be cost-driven, which was a criticism that many people made of the 2010 SDSR.

It is five years since NATO adopted its new strategic concept. It was intended to last for 10 years, but the security threats we face are clearly changing, so it needs to be reviewed. Therefore, another question that I wish to put to both the Minister and my hon. Friend the Member for North Durham (Mr Jones) is: would their respective strategic defence and security reviews consider whether NATO’s strategic concept needs to be reviewed?

[Several hon. Members]

rose—

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. The time limit is nine minutes.

19:31

[Sir Nicholas Soames (Mid Sussex) (Con)]

May I start by warmly congratulating the Chair of the Defence Committee, my hon. Friend the Member for Penrith and The Border (Rory Stewart), on what I thought was a masterly speech, both in detail and in content, and with which I agree entirely?

I think I can leave out the stuff about how we all agree that defence and security is the most important responsibility of any Government, because we all know that is the case and, by and large, we all agree on it, but the character of conflict has changed profoundly and new threats have arisen. As we look to the future and prepare for it over the next several years, we really must prepare ourselves to meet some very different challenges.

As in any other area of our public obligation, if we have a strong economy—and we do—that will enable us to build strong armed forces and obtain the structure we need. There is absolutely no point pretending that it would be sensible, wise, prudent or in the national interest not to commit to spending the 2% target. Indeed, I would go further and say that failing to do so would be a terrible slur on Britain’s honour.

The question of the threat is quite clear. Threat consists of capability and intent. So what threatens us, our way of life and our prosperity? The world wars and the cold war of the 20th century were waged between states or by sponsored surrogates. They defined our capabilities. The emerging challenges of the 21st century that threaten us, our way of life and our prosperity are not so much Médecins sans Frontières, but Menace sans Frontières. They are transnational forces such as fascist theocracies, little green men, organised crime and cyber-anarchism, and they are not defining our defence capabilities; they are merely defining our attention—and a short attention span it is, too—while our political and public intent is watered down and neutered, since today, alas, perception is reality.

The world is increasingly connected—iPads, iPhones, the internet and social media—but it is not at all well informed. The power of propaganda, mischief and misinformation allows faceless entities to shape the debate and, alas, our will. Our current narrative, I regret to say, is clumsy, outdated and thoroughly outmatched.

This last century we sought capability dominance that would overmatch our enemies, and in the round we achieved it. This century has already demonstrated possible enemies who have successfully achieved capability avoidance and are moving our best defences rapidly towards capability irrelevance. For example, strategic deterrence kept the world from war for 40 years because it deterred. Today the threat of use in North Korea and even the threat of ownership in Iran allows small nations to gain great leverage with tactical capabilities, whether real or perceived. Frankly, neither country is seriously deterred by our strategic forces, and the future holds every possibility of small-scale tactical nuclear use.

The operating environment has shifted from one of near certainty, in the cold war, to a period of uncertainty, in the war on terror, and it will move further left towards the unknown. In that space, investment in people and technology, with genuine blue-sky thinking and leading-edge research and development, will be absolutely essential while maximizing our existing equipment and capabilities through innovative integration. Colossus and Ultra shortened the second world war by two years. Who foresaw and invested in those as war weapons in 1939? Our universities and science laboratories provided the knowledge and advancement that allowed us rapidly to blend national expertise to defeat Germany. I recommend that anyone who has not yet seen the “Churchill’s Scientists” exhibition at the Science museum to do so. Today, robotics, advanced computer studies, telematics, teleonomics and bioscience offer the same, but they are not seen or really much supported by defence.

We must express the new defence challenge in terms that people can understand. There is of course a need to have contingent forces capable of operating to the old threat of war or proxy war, but that should not be the main effort. The present challenges require us to prepare for how we anticipate them to evolve, using current capabilities adapted and integrated for best use in the near term.

The future threats to our country are truly wicked, and they continue to evolve and challenge us. Investment in people and advanced science, in close collaboration with our closest and most reliable ally in this field—the United States—should determine the course that defence must now take.

19:32

[John Woodcock (Barrow and Furness) (Lab/Co-op)]

It is a pleasure to follow such esteemed Members on both sides of the House, particularly the Chair of the Defence Committee, of which I am a member. I wholeheartedly endorse what he said about the threat from Russia. He talked about the arc of unpredictable threats that we could face from Putin, but he also put his finger on the overall problem that, whatever those threats are, a common feature of our response and posture is that we are signalling to Russia and to President Putin that we are simply not up for the fight. The longer that goes on, the longer we will give a sense that we will do almost anything to avoid confrontation.

I do not know whether the Minister for the Armed Forces is going to get to his feet later and repeat what his boss the Defence Secretary said last week, which was that there is only a diplomatic solution to the crisis. President Putin does not think that. As my hon. Friend the Member for York Central (Sir Hugh Bayley) rightly pointed out, President Putin is increasing his defence investment and capability enormously, and he is doing so precisely so that he can potentially bring about a military confrontation. The longer we maintain this stance of cowering in the face of that threat, the more likely it is that we will face a military confrontation. The longer we delay, the worse it will be. I hope that the Government will get the message that we cannot go on like this, with the scale of cuts in defence expenditure. Frankly, it is a disgrace that we have a Prime Minister who so recently was trying to convince all our NATO allies to maintain the 2% commitment but who will not make it clear, when asked repeatedly, that a Government led by him would maintain spending at 2% over the next five years.

[Mr Gray]

rose—

[John Woodcock]

Of course I give way to my colleague on the Defence Committee.

[Mr Gray]

I am grateful to the hon. Gentleman; he is extremely kind. We on the Government Benches entirely agree with him—we must hold our Prime Minister’s feet to the fire and insist that he live up to the 2% target. The more important question is whether the hon. Gentleman has had any indication from the Labour Front Bench that in the event of a Labour Government, Labour will go for 2%.

[John Woodcock]

I am grateful for the hon. Gentleman’s honesty when he says that that is the more important question. Of course this Government are on their last legs and will soon be replaced. Suffice it to say that when a Labour Government take office, I shall be as vociferous in calling for the defence uplift as I am at present.

In debates on the strategic deterrent, people who have long wished the UK to scrap its nuclear weapons came up with a line that had a certain ring to it a little while ago—the cold war is over; who are we supposed to be protecting ourselves against? The rise of Putin has proved what folly that policy would have been, had the Labour Government followed it and not done as they did, which was to set in train the programme of renewal of our deterrent submarines. There is a strong argument that if we are not already in a situation of renewed cold war, a cold war is the most optimistic outcome in the current environment, such is the level of aggression being shown by President Putin. If we do not step up and re-engage with his current activities, the alternative is a full-blown war on Europe’s borders or potentially even within the European Union. We have to wake up to that.

There are clear reports that part of the increase in defence investment in Russia is going into the secret cities which some time ago people reported were at only 50% capacity. They are now running at full capacity to upgrade Russia’s nuclear threat. The idea that we should do anything other than keep to the current programme of renewal of our deterrent submarines would be madness in these circumstances.

[Dr Julian Lewis]

The hon. Gentleman knows that he and I are as one on the question of the future of the deterrent. He also knows that if there were a Labour Government pure and simple, or a Conservative Government pure and simple, the future of the nuclear deterrent would be assured. How confident is he that if the Scottish nationalists held the balance of power and offered the keys of No. 10 to the leader of his party, his party would say no rather than abandon the nuclear deterrent?

[John Woodcock]

I am glad the hon. Gentleman asked me that. I am completely confident. It is a shame that not a single MP from the Scottish National party has bothered to turn up to the debate. It gives the lie to the idea that they care about the future of our country’s defences.

I am absolutely confident about that. As the hon. Gentleman knows, we were the ones who took the difficult but necessary decision to start the programme of renewal, we have remained committed to it throughout our time in opposition, and we will finish it if we are elected to government. In the words of the soon-to-return Member, Alex Salmond, it would be unpardonable folly for either side to listen to the minor parties. We will not compromise the future security of our nation. They may ask, but the answer from our side will be no. I know that if the hon. Gentleman has breath left in his body, the answer on his side will be no as well.

The Defence Minister has been worried, I know, and his boss, the Secretary of State, has also been worried about some remarks made by the Leader of the Opposition in a question and answer session, when he said that the Labour party wanted the cheapest form of deterrent. That seemed to get to the Minister. He thought that “cheapest” meant something different from “minimum” and he has asked repeatedly about this. I want to set his mind at rest if I can.

I have the words of the Leader of the Opposition at a similar question and answer session—he does lots of those. Just in case the Conservatives did not send one of their secret scribblers with their Dictaphones to the event, I want to read out what the leader of my party said on 15 January this year at a question and answer session in London, so that it is on the record. He said:

“Personally, because you asked about nuclear weapons, I want the minimum deterrent that will keep us safe.

We’ve always been a nuclear power. We are recognised as such in the non-proliferation treaty.

From what I’ve seen the best answer to that is the replacement of Trident.

Other people have said that there are other alternatives, but when they have looked at those alternatives actually they haven’t come up with better or more cost effective alternatives.”

There you have it. I can set the Minister’s mind at rest. There is a settled consensus on the issue. We are now down to the detail of the programme.

Admiral Lord West in the other place raised important issues about the potential slowing of the drumbeat of the Astute programme in Barrow shipyard. I hope that when the Minister replies, he can reassure the House that it is not his Government’s plan to stretch out the Astute programme to such an extent that the seventh boat is no longer necessary. We have reduced our nuclear submarine fleet from 14 attack submarines right the way down to six. That seventh submarine is important, particularly in an environment where Russia is increasing its activity and its investment.

The Minister knows, and I hope he will be good enough to confirm, that because of the delay in the programme as a result of the pretty shoddy deal that he did with his coalition partners to delay main gate until 2016 and to slow down the programme of building an enormously complex enterprise—the first new deterrent submarines that this country has had for decades—there is now precious little contingency in that programme. The delay imposed by both coalition partners at the beginning of this Government will not be available this time. Main gate needs to happen in 2016. I hope the Minister can confirm that he recognises that, and that he will stick to the timetable that he set out and not delay it once again.

On the submarine programme and the renewal of the UK’s deterrent, an intervention from the Liberal Democrats, which we thought unhelpful at the time, has turned out to be very helpful. Now that they have explored their own options using taxpayers’ money and found them to be complete nonsense, we have understood that we are faced with a binary choice: we continue with this investment at a time of renewed aggression from our old adversary such as we have not seen for many years, or we abandon it. Labour Members will continue the programme that we started, and I hope that those on the Government Benches will do likewise.

19:48

[Mr Keith Simpson (Broadland) (Con)]

I congratulate my hon. Friend the Member for Penrith and The Border (Rory Stewart) on introducing the debate with such clarity and depth of knowledge.

This autumn the Prime Minister, whoever he is—no doubt it will be my right hon. Friend—will revisit the strategic defence and security review. He is on record as saying that he thinks it just needs a light touch. With the greatest respect to my right hon. Friend, I think he is wrong for every reason that my hon. Friend and other colleagues here have pointed out. It is a horribly complex situation.

I remember, in the early 1970s, going to seminars on military history, defence and international relations at the Institute of Historical Research, where one sat at the feet of Professors A. J. P. Taylor, Donald Cameron Watt, and Sir—as he is now—Michael Howard. A lot of the talk was about rearmament and appeasement in the 1920s and ’30s, and I used to sit there and think how naive and stupid were the chiefs of staff, the politicians and most of the advisers of that time. In the past 20-odd years, I have gained more sympathy for them, because they were faced with financial collapse and a multiplicity of threats. The armed forces had been reduced in number, most Government expenditure had been reduced, and the armed forces themselves could not agree on priorities. In relation to the Ministry of Defence’s budget, the armed forces—I say this with regret—have been log-rolling for decades, often wasting billions of pounds of taxpayers’ money.

In the few minutes that I have, I want to emphasise the fact that we should have a national security policy. That is of the things that the Government should be addressing this autumn. I hope that the discussion will not just be confined to Government Departments and to Parliament but open to wider outside expertise, as happens in the United States of America, Canada, Australia, and most European countries. That is absolutely crucial. Although this debate has—rightly given the nature of the publication—concentrated on the defence aspects and highlighted the threat from Putin, we all know that in fact we face a multiplicity of threats. If anything, the situation is more challenging for a Government now than it was even for the Governments of the late 1930s.

In looking at a national security policy, we must think not only of the threats that our country faces and is going to face, which have been outlined by my hon. Friend the Member for Penrith and The Border and others, but what the market will bear in terms of the money that is going to be allocated. It is a sobering thought that, looking at the national security budgets in the round, one of the poorest Departments is the Foreign and Commonwealth Office, with £1.72 billion. The Department for Work and Pensions could lose that kind of money in an afternoon, and Government IT budgets have invariably done so. The MOD’s budget is £34.34 billion, and the budget of Department for International Development, which I would include in the national security budget, is £9.89 billion. I will not go into the arguments about whether DFID’s budget should be reduced.

[Sir Gerald Howarth]

The latest figures I have indicate that the figure is actually £13 billion—it has gone up from £8.5 billion.

[Mr Simpson]

I am using the latest figure provided by the House of Commons Library. There are lies, damn lies, and statistics. The fact is that if we put together the budgets of those three Government Departments, that part of the national security budget is about £45.95 billion. If we throw in, say, another £5 billion to £10 billion for the intelligence services and GCHQ, we have about £55 billion. That is not a vast sum of money, but it is quite large. We need to consider whether we are spending our national security budgets correctly. They are in separate silos, and it would be much better, in the modern world, to look at them in the round.

In outlining the threat of Putin and all the other threats, we need to think about how we get public opinion alerted to this, and whether public opinion is prepared to see more money spent on national security. The latest polling done this weekend by YouGov shows what the public think about the amount of money spent on defence: 49% think it is too little, 20% about right, and 16% too much. Yet if we drill down into the 49% and tell those people that to get the extra money we must either, in simple terms, put up taxes or cut other areas of public expenditure—some will say “Transfer the money from DFID”—they do not much like either alternative.

Another aspect of the poll—this relates directly to what my hon. Friend the Member for Penrith and The Border has been saying—showed that 52% of those asked believed that resources on defence should be focused on dealing with the threats from Islamic terrorism rather than threats from states like Russia: in fact, only 18% thought that we should allocate resources to that. We can play with statistics, and public perception changes. In September 1938, the overwhelming majority of people welcomed the Munich agreement, but by April 1939 they had changed their views completely. Things will always change. The challenge that we all face is in being open in our debate and in getting public opinion to think about this, but also in getting the Government to move away from what can only be seen as cold war thinking in relation to cold war structures of the sort that still exist today.

To be fair to the previous Government, and our own Government, they did, between them, set up the National Security Council. Things are much better co-ordinated than ever before, according to everybody I have spoken to, including Opposition Members. The success of the National Security Council depends on the personality, interest and drive of the Prime Minister. Although one might disagree with some of the decisions that the current Prime Minister has made, he has provided that drive by regularly attending the National Security Council. There is nothing set in concrete to say that another Prime Minister would do that. As with Departments, once we remove a Minister who takes real, direct action, we can see things drift.

This has been an important debate. The national security budget and the strategic defence and security review do not need a light touch, but some serious thinking. We should have a debate not just about whether we spend 2% of GDP on defence but about how much we spend in total on national security and whether we can move any of that money around between Departments.

19:57

[Ms Gisela Stuart (Birmingham, Edgbaston) (Lab)]

In July 2011, Anders Fogh Rasmussen said:

“Washington will not always take the lead when it comes to power projection. The United States will demand…that Europeans assume their responsibilities in preserving order, especially in Europe’s periphery.”

That is one of our greatest challenges. We have taken peace for granted, we have taken a status quo for granted, and we have taken American support for granted. Increasingly, we are, first, ignoring what is happening in Russia, secondly, cutting back, and thirdly, finding that America turns to the Pacific and has to justify to itself why it should support the Europeans in a pursuit that it regards as our job. That means that the situation becomes very difficult.

A war of information and propaganda is going on that we are singularly losing in the west but Putin is winning on his home ground. If we look at Russian opinion, we can see what Russians think. In 1997, they were asked:

“Are the big Western countries…partners or opponents of Russia?”

Then, about 50% regarded the US, Germany, Japan and Great Britain as partners of Russia. Now, 79% of the Russian population say that they think we are their enemies. If they are then asked whether Russia has the right to annex territories, the answer is interesting: 54% say that generally Russia has the right to annex territories, but the additional 34% who would usually say, “No, not generally”, will say with regard to Crimea, “Yes, of course it can do that.” That statement is as absurd as it would be if Angela Merkel in Berlin suddenly said, “Germany will annex Königsberg because it has traditionally always been German.” We would say that that was a totally, utterly bizarre argument, yet we are accepting it in relation to Crimea. We are also accepting, with a stunning silence, the fact that Putin has single-handedly redrawn international boundaries for the first time since 1945. We are all saying, “Well, he really shouldn’t be doing this, should he?”, but not offering options of any kind.

It is worth looking at what Putinism may actually mean. Strobe Talbott says:

“Putin’s aggression only makes sense against the backdrop of what has been the defining theme of his presidency: turning back the clock…Therein lies the most malignant manifestation of Putinism: it violates international law, nullifies Russia’s past pledges to respect the sovereignty and territorial integrity of its neighbors, carries with it the danger of spinning out of control and sparking a wider conflict, and establishes a precedent for other major powers to apply their own version of the Putin Doctrine when convenient”.

This is not just about Putin’s single-handed redrawing of international boundaries, because a number of other countries would be very happy to do the same thing. Once he is allowed to do that, they will feel that they are being given the green light to do so as well.

When we discussed the Greek euro crisis, it was staggering to hear how relatively relaxed people were about Russia offering Greece money. That should have set just about every red light raging, because it represents an extension of influence and, if we do not challenge it, it will simply continue. Putin is not acting out of strength, but out of the fact that he is terribly weak at home and therefore has to make enemies abroad.

[Mr Gray]

To enforce the hon. Lady’s point, is it not chilling that 75% of all of the equipment used by the Hellenic forces is supplied by Russia?

[Ms Stuart]

Indeed. It is an incredibly malign force, but we are not prepared to describe it as such, not only because of the historic reason that at one stage we thought Russia could become a partner, but because we now feel there is nothing we can do owing to its size and perceived power. Our debate about the 2%, what it means and how we respond has to go much deeper and address the roots of the issue.

In idle moments over the past few weeks I have been reading a biography of George I. Interestingly, it says that when George I took the throne 300 years ago the Great Britain of which he became ruler was one of the great European powers and intimately involved with the continent, and its island position rendered it immune to invasion. It was assertive and knew that it could strike its own bargains in Europe—it did not need anybody else’s permission. There was also a big divide whereby the Tories advocated concentration on seaward expansion to the West Indians, while the Whigs thought that we should go into mainland Europe.

[Mr Jeremy Browne (Taunton Deane) (LD)]

Grand coalition is what you need.

[Ms Stuart]

It is so good to have a second Lib Dem here so that we can get some commitment for a nuclear deterrent, although the hon. Gentleman is not going to be here for much longer.

Essentially, we were able, even at that stage, to define what we thought Britain’s role in the world was. We had a strategy that allowed us to say what our foreign expansion and defence should be like.

How will the Great Britain that the next Prime Minister takes over on 8 May be described in 300 years? I think the answer will be that it was a country that had more seats than any other country at international tables and that is was a member of the P5 at the UN, and of the European Community and the Commonwealth, but that it did not know what to do. It kind of still wanted to project power, but it could not make up its mind whether it was a greater Denmark or still a serious member of the P5. It was singularly incapable of defining which threats it was meant to meet. It could not make up its mind whether its foreign policy was a 19th-century-type mercantile protecting of trade routes, or whether it should at times be a necessarily aggressive force for good. It took its allies for granted, particularly the United States of America, and it would host huge summits in which it would lecture other countries and the rest of the NATO members that they should not drop the 2% target.

What are we doing now? The Government sit here complacently and Ministers feel not the slightest bit ashamed that they do not stand at the Dispatch Box and say, “We are still complying with our commitment to 2%, as we said we would in Wales and as we urged other countries to do.”

Americans once referred to Great Britain as “no good, crummy allies.” It is absolutely right that the arbitrary figure of 2% not only says to the rest of the world, Putin and any other putative Putin that we are serious, but tells our allies, “We are reliable. We will stick to what we have said we will do and we expect exactly the same from you.” We cannot go on criticising the United States of America and telling them, “You guys just keep trotting around the world being its policeman,” but then, when they are no longer there, say, “Where are they?” If we want to be the grown-up country we have been for a very long time—a country that sits with a veto at the P5 and a nuclear power—we have to be absolutely clear about the role we wish to play in the world.

When the Prime Minister elected on 8 May—I hope it will be my right hon. Friend the Member for Doncaster North (Edward Miliband)—commissions the strategic defence review, it will have to start by addressing our role, what we wish to do and what the financial commitments will be. One thing is for sure: the 2% will be the absolute minimum. It will probably not be enough, but it would be shameful if this House did not continue to press for us to stick to our commitments and to those we expect of others. Rather than being a no good, crummy ally, we should be reliable, effective and clear in our purpose.

20:06

[Caroline Dinenage (Gosport) (Con)]

It is a great pleasure to take part in this debate, not because I am a member of the Defence Committee or a former Defence Minister, but because I represent an area, Gosport, with such a proud military heritage. As far back as the Crimean war and beyond, my constituency supplied the Navy with explosives, fuel, food, equipment and people. Indeed, sailors injured in Crimea were attended to at the Haslar hospital, while others returning to Gosport from the campaign formed the naval lads brigade, which is today known as the sea cadets, to help orphans created by the conflict. Now, 160 years later, my constituents and our neighbours in Portsmouth harbour are still proudly serving our armed forces and once again find themselves concerned by events in Crimea.

As the excellent Defence Committee report sets out, the Russian invasion of Crimea and eastern Ukraine has created the need for a fundamental shift in calculations about European security. I fully support the recommendations regarding improvements to NATO’s rapid reaction force and the need to undertake large-scale military exercises, and I of course welcome the recommendations regarding preparations to defend the Baltic states from what they refer to as ambiguous warfare.

It will come as no surprise that I want to focus on the Prime Minister’s NATO commitment to spend 2% of our GDP on defence. Why does it matter? Quite simply, it matters because failing to hit the 2% target would degrade our armed forces, damage our standing with our allies and hit our credibility as a major player in NATO and on the world stage. Above all, it would clearly limit the ability of our armed forces to project and protect our interests around the world. As Professor Michael Clarke of the Royal United Services Institute says, it would have an obvious and overwhelming impact on the kind of military we can afford.

We already do not have enough combat aircraft, and yet, given existing spending commitments and the necessary replacement of Trident, there would probably be a fall in the overall number of combat aircraft for the RAF and the Navy. The Navy now has just 18 major warships and it may struggle to order the 12 or 13 new Type 26 frigates it had planned. The Minister will say that our naval ships are now better equipped and more advanced than ever before, but they still have not mastered the objective of being in more than one place at the same time.

The proud military heritage of my area on the south coast has sadly already suffered job losses as a result of BAE’s decision to terminate ship building at Portsmouth, and further jobs are now threatened by the early withdrawal of the Lynx helicopters, because Vector Aerospace, which maintains and repairs them, is the largest employer in my constituency. Further cuts to the armed forces could have a devastating impact on communities on the south cost.

The impact of failing to meet the 2% target goes far beyond the denuding effect it would have on our armed forces and the communities that support them. As the Government acknowledge in their response to the Committee’s report,

“the proportion of GDP devoted to defence is an important indicator of how seriously members view collective security.”

The 2% is not just about the additional troops, tanks, fighters and frigates that it will secure; it is a symbol, both to our allies and to our enemies.

[Adam Afriyie (Windsor) (Con)]

My constituency, like that of my hon. Friend, has a strong military history. Does she agree that one of the great insights in the report is that this is not only about the percentage of defence spending, but about the allocation of spending in a world where high technology and asymmetric techniques are used in modern warfare?

[Caroline Dinenage]

As the Chairman of the Defence Committee, my hon. Friend the Member for Penrith and The Border (Rory Stewart), has already pointed out, we face a more uncertain world than ever. The 2% level not only secures the right equipment, but is a sign of our willingness to back up our words with action. If we fail to meet the target, our credibility as a major player on the international stage is in question.

Teddy Roosevelt famously described his foreign policy by saying:

“Speak softly and carry a big stick.”

At the summit in Wales, we explicitly encouraged other nations to aim to spend 2% of their GDP on defence. If we fail to meet the 2% target, having stated our intention to do so and encouraged our allies to follow suit, we run the risk of shouting our heads off very loudly while brandishing a very unimpressive stick. There would be other repercussions. We are the lead military power in NATO Europe, so if we fail to meet the 2% target, other European NATO countries will follow our lead and cut back their own defences. Why should they invest when we are cutting back? It would also damage our reputation with one of the few other countries currently hitting the 2% target, the USA. As we have heard today, the head of the US army has said he is “very concerned” about the potential failure to meet the 2% target. Further cuts to our armed forces will undermine our credibility as an effective partner and ally.

Such a move would not go unnoticed elsewhere. All the strategies to protect the Baltic states will be meaningless —crucially, they will be seen to be meaningless by potential adversaries—if they are not properly financed. Russia’s defence spending has increased by an average of 10% a year since the invasion of Georgia in 2008. When we need to show strength to deter aggression, we cannot afford to cut back our military capability.

It is important to have both clarity and candour in this debate. There are those who believe that we no longer have a significant role to play in the world, and consequently that spending on defence is not a priority. I think that the nature of the threats we face from an aggressive Russian dictator who rips up the international rulebook, as well as those from ISIS and other terrorist organisations, means that now would be the worst possible time to cut defence.

There is at least a flawed logic to arguing that if we do not want to be a major player on the world stage, we do not need strong armed forces. What we absolutely must not do is kid ourselves that we can deprive our armed forces of the resources they need, but still hope to retain the same level of influence and security. We need an open and honest debate about what we want the armed forces to deliver and what we want their future to be. If our ambitions are smaller, then we need to come clean and say how many thousands of troops we are prepared to lose, how many frigates we are ready to scrap and how many job losses we will take. The worst thing we could possibly do would be to end up with armed forces that are shrunken and deprived of the resources they need but which that still expected to operate at exactly the same level.

I do not believe that we should retreat from the world. We are the fastest growing economy in the developed world, with a seat on the UN Security Council, one of the most extensive diplomatic networks and the best trained armed forces on the planet. We have consistently stood up for human rights, democracy and the rule of law, and the world would be worse off were we to shrink from that role. More importantly, I do not believe that we can retreat from the world. We cannot opt out of the threats posed by Russia, ISIS and others. Putin wants to take Europe back to the 19th century and the days of spheres of influence, and ISIS wants to burn western civilisation in the fires of an Islamist caliphate. Spending 2% of our GDP on defence is not a vanity; in a world that has not felt more unstable in my lifetime, it is the best way to preserve the peace and stability that our fathers and grandfathers fought so hard and sacrificed so much to achieve.

20:10

[Mike Gapes (Ilford South) (Lab/Co-op)]

It is a pleasure to follow the hon. Member for Gosport (Caroline Dinenage). I agree very much with what she has just said. There is broad cross-party agreement in the House about the importance of the NATO alliance, defence spending and Britain’s role in the world. There are of course a few Members—sadly, they are not in the Chamber for me to provoke—who would disagree. Some of them might be happy to appear, through Freeview, as a modern-day Lord Haw Haw on Russia Today or on other channels putting out Putin’s propaganda into everybody’s front room.

The Chairman of the Defence Committee, the hon. Member for Penrith and The Border (Rory Stewart), referred to the BBC World Service. I absolutely agree that it is of fundamental importance, but there is a serious long-term threat to its future on the horizon. In the past few days, we have started to discuss possible changes to BBC funding arrangements. On 1 April 2014, the Foreign and Commonwealth Office transferred World Service funding to the BBC. No longer is there a grant from the FCO to fund the World Service. As a result, as we move towards the next settlement for the BBC, people might argue that they would rather spend money on reality television shows or sport than on BBC language services, which are an important part of our soft power and influence in the world. The House needs to revisit that question.

The issue was flagged up in Foreign Affairs Committee reports last year and again recently, and it should be part of the discussion of the defence and security review. There has to be a fundamental foreign policy and soft-power aspect to that review. The hon. Member for Broadland (Mr Simpson)—sadly, he is not in his place at the moment—made that point very well. We need joined-up Government and a joined-up approach to this matter. As with the review carried out after the 1997 election, in which Lord Robertson played an important role, I hope that we will have a serious, in-depth review after the coming general election, not one pushed through quickly by the Treasury for some other agenda. We need to look at Britain’s role in the world, our alliances, our involvement, our role on the Security Council of the UN, our partnership with others in Europe and so on.

In the time available, I want to concentrate on a few points. The first is that Putin has not suddenly come to behave very badly. If we look back at reports published by the Foreign Affairs Committee in 2007, we will recall that the British Ambassador in Moscow, Tony Brenton, was harassed and threatened by a group called Nashi, young supporters of Putin, and there was the murder with polonium of Alexander Litvinenko in London. Actually, there was a series of murders from 2002 onwards. A report today says that probably 12 people—some of whom have been prominent internationally, such as Sergei Magnitsky and Anna Politkovskaya—have died in mysterious circumstances, several of them having been shot in the street close to the Kremlin. The Putin regime has operated in that murky world, where the intelligence services have undertaken unattributable actions against the regime’s opponents internally and abroad. We are now seeing how they are behaving in Ukraine.

There is another aspect to the agenda of Putin’s regime: they are not just trying to get useful idiots in the west to pursue their agenda; they are bankrolling people who will undermine the cohesiveness the people they perceive as their opponents. A guy called Alexander Dugin, a far-right ideologue close to Putin, has organised conferences of Nazi, neo-Nazi and far-right groups in Moscow and elsewhere. Putin, via a Czech bank, has been bankrolling the National Front in France, and there is an agenda. People who are against the European Union or collective defence—Putin and those around him perceive such things to be a threat to his project—are supported. Great efforts were made to undermine the association agreement between Armenia and the European Union, and following that, similar efforts got greater opposition in Ukraine. Reference has already been made to attempts to provide financial assistance to countries that might take a different view within the European Union. Greece has been mentioned, but we can also look at loans that were given to Cyprus at a particular time. It is all part of trying to build influence and undermine perceived threats.

It is not just NATO that is seen to be a threat: entirely peaceful commercial relationships that countries might have with the European Union are also seen to be a threat to Putin’s world view, which is to create a Eurasian union and to try somehow to reconstitute elements of what used to exist in the Soviet Union. Why is that? Putin is on record as saying that the collapse and end of the Soviet Union was the “greatest geopolitical disaster” of the 20th century. Think about that. It was not the Nazi invasion of Russia, the Holocaust, or the tens of millions of people killed by Stalin. If he wished to criticise other countries he could have mentioned the dropping of nuclear weapons—there could have been all kinds of arguments. However, he said that the collapse of the Soviet Union was the greatest disaster of the 20th century, and that is the mindset we are dealing with.

After the drunken Yeltsin regime, we had illusions and thought that at last there was stability in Russia and that somehow there was someone we could do business with. Unfortunately not. The world we are facing today means that we can have no illusions, and I suspect it will be many years—potentially decades—before we can go back to the benign thoughts that we had when Mikhail Gorbachev was there and the Soviet Union was peacefully ended. Let us be clear: we must not recognise the seizure of territory, and just as we stood by the Baltic states and never recognised their seizure by the Soviet Union, so we must not accept the seizure of the territory of Ukraine.

20:23

[Sir Gerald Howarth (Aldershot) (Con)]

I join other Members in congratulating my hon. Friend the Member for Penrith and The Border (Rory Stewart). He has unquestionably set the tone for a seriously instructive and intelligent debate, which I hope receives wider coverage than simply in here. The hon. Member for York Central (Sir Hugh Bayley) took his cue from the massive tome on the estimates, but I will take mine from the Defence Committee’s report that was introduced by my hon. Friend.

The role of NATO has been developing and is hugely important. After the fall of the Berlin wall in 1989, there was no clarity about whether NATO had any role to play. It is a great tribute to it—particularly to Anders Fogh Rasmussen in recent years and Lord Robertson of Port Ellen before him—that NATO has developed an important role in stabilising other parts of the world, as well as looking after the defence of Europe. NATO did well in the way the international security assistance force operation was conducted, whatever the criticisms of the strategy, and the Secretary-General assembling a team to bring together not just NATO members but non-NATO members in the Libyan operation was a tribute to him.

The key thing that has happened is that a resurgent Russia has changed the outlook dramatically. The annexation of Abkhazia and South Ossetia in 2008 was perhaps seen as a one off, but the annexation of Crimea last year has been a wake-up call. Paragraph 2 of the Committee’s report states:

“However, events in Crimea and Ukraine represent a “game changer” for UK defence policy. They have provoked a fundamental re-assessment of both the prioritisation of threats in the National Security Strategy and the military capabilities required by the UK. The UK's Armed Forces will need now also to focus on the defence of Europe against Russia and against asymmetric forms of warfare. This will have significant implications for resources, force structures, equipment and training.”

As others have mentioned, the new Putin doctrine is instructive. Writing in Jane’s Defence Weekly, Dr Mark Galeotti said on 11 February that Russian policy

“reflects a developing theme in Russian military art, demonstrated in Ukraine, where a combination of direct military intervention—often covert or at least ambiguous and denied—as well as the operations of proxy forces and intelligence assets have been blended with political leverage, disinformation campaigns, and economic pressure.”

[Sir Nicholas Soames]

Does my hon. Friend agree that one of the most dangerous aspects of all this concerns what President Putin is doing to improve greatly on the way Russian forces acted in Georgia, which was not a great success from their point of view? He is trying a whole lot of new tactics, forces, weapons and structures in a wholly or partially deniable way.

[Sir Gerald Howarth]

My right hon. Friend is right, and it is significant how Russia has behaved, particularly with the annexation of Crimea. I remind hon. Members that I questioned the Foreign Secretary before Russia invaded to see whether he had heard any indication from Lavrov that it had no intention of using military force, but four days later, as my hon. Friend the Member for Penrith and The Border said, it did.

Recently, a whole raft of people have been drawing attention to what is going on. The Defence Secretary spoke of Russia as a “real and present” threat, and the Deputy Supreme Allied Commander Europe, Sir Adrian Bradshaw, also warned us and said there was a danger that Vladimir Putin would try to use his armies to invade and seize NATO territory, calculating that the alliance will be too afraid of escalating violence to respond. Sir John Sawers, former head of MI6, has said that Russia poses a state-on-state threat. He also suggested that we must have dialogue with Russia. I find that idea attractive, but I do not see how we can possibly have dialogue with a man who is intent on redrawing the map of Europe.

It is not just in Europe that we face severe challenges. As my hon. Friend the Member for Broadland (Mr Simpson) said, we face a multiplicity of threats. We can all see what is happening in the middle east. Syria is on fire and the Arab spring has left turmoil in north Africa. Now ISIL is running rampant in Iraq—thank goodness we have intervened there to check its advance, because if Iraq and all its oil revenues had fallen to it, that would have been hugely damaging to the whole world, not just the middle east.

Iran is still declaring its ambition to achieve nuclear weapons. That matter is still unresolved. We know North Korea’s filthy weapons are available to anybody who wants to pay good money to buy them. China is ramping up its military activities. I do not know how many right hon. and hon. Members have seen what is going on in the South China sea. I refer again to Jane’s Defence Weekly—this is not a particular plug for it—which has been running a hugely instructive series of articles on what China is doing in the South China sea: creating runways and port facilities on a whole raft of disputed uninhabited islands. The most significant land building in the Spratly Islands is on Fiery Cross Reef. It is shaping up to be the site for China’s first airstrip in the Spratly Islands. James Hardy, the Asia Pacific editor, writes that the area

“was previously under water; the only habitable area was a concrete platform built and maintained by China’s People’s Liberation Army Navy…The new island”—

first seen in November 2014—

“is more than 3,000 metres long and between 200 and 300 metres wide: large enough to construct a runway and apron.”

We can see what China is up to. The United States recognises that. The former US Defence Secretary Hagel said that Beijing is taking

“destabilising, unilateral actions asserting its claims in the South China sea.”

He warned that the United States would

“not look the other way when fundamental principles of the international order are being challenged”,

although I do not see any evidence that the United States is doing that.

I have referred to the criticisms that have been made at home. Criticisms are now coming from the United States, on which we find ourselves heavily dependent. We heard General Odierno today repeat not so much criticisms but the warnings he gave two years ago about the capacity of the United Kingdom to deploy alongside the United States. We should take these warnings seriously. The President of the United States has written to our own Prime Minister to express concern. This is our closest ally. We stand shoulder to shoulder. We have beliefs that are completely in common. We share intelligence. We understand all these things. We share nuclear deterrents. We believe in all those things, yet our ally is saying, “Hold on, I am concerned.” When I went to Washington in November, the discussions I had there really did rock me. Americans were saying, “Britain is now just regarded as another European country.” That is fundamentally damaging to the United Kingdom. It is not a matter for defence buffs; it is a matter for the whole nation if we are seen to be diminished, which I believe we are.

The state of our armed forces has been mentioned. This is a very serious matter. The Army is going to be cut from 110,000 to 82,000 regulars. I know we are going to have 30,000 reservists, but that is not the same thing. The Navy has been cut by 5,000, and the Royal Air Force cut similarly. We are down to 19 frigates and destroyers, when in 2001 we had 33. In 1990, we had 33 fast jet squadrons. We are now down to seven.

We face a very serious state of affairs. It is true we are committed to deterrent, and that, as far as we can understand, the Opposition are too. We are investing in cyber. My hon. Friend the Member for Penrith and The Border is absolutely right about that. As I mentioned to him, cyber attack is an important dimension. We have to advertise, as my right hon. Friend the Member for Runnymede and Weybridge (Mr Hammond) the former Secretary of State for Defence made clear. We need to carry a big stick, as a number of hon. Members have said. Part of that big stick is our 2% minimum commitment to maintain our credibility with NATO. For if we do not, we will appear to be weak.

[Sir Edward Leigh (Gainsborough) (Con)]

That could, of course, be linked to our 0.7% commitment to international development, as per the amendment in the House of Lords.

[Sir Gerald Howarth]

I am very grateful to my hon. Friend for provoking me. I think most people in this place know that I find it extraordinary, as a Conservative, that our party should be committed to enshrining in law that we spend 0.7% of our national income on overseas aid yet refuse to give a commitment to spend at least 2% on defence, which is part of our NATO obligation. As everybody has said, the Prime Minister made that clear to others last September at the NATO summit.

We are in danger of being diminished. We are in danger of sending out the wrong signals that we are not serious about the defence of the realm and our wider interests. The SDSR must be strategic. It cannot be a light touch. We have got to seize this opportunity, which we could not take in 2010 because we had to have a Defence review driven by the Treasury to put the nation’s finances back in order again after they were destroyed by the former Prime Minister.

I will leave the House with this thought. My right hon. Friend the Leader of the House said in 2009 that a Conservative Government would wish to help to shape the world in which we find ourselves, not simply be shaped by it. If we are to do that, we have got to commit to the defence of the realm.

20:34

[Sir Bob Russell (Colchester) (LD)]

In a world of rapid change, disorder and insecurity, the men and women of Her Majesty’s armed forces remain our most important asset. Yesterday I visited the Imperial War museum at Duxford, which is also the home of the Royal Anglian Regiment museum. I ask myself: are we, today’s generation, betraying their memory? There are the new threats and the old threats—as well as forgotten threats—among them, as we have heard, Iraq and Syria, and the middle east generally, Russia and Ukraine, Russia and the Baltic states, and how article 5 of NATO’s obligations may impact on the UK. I intervened earlier to say that I had visited the Falklands last month. Argentina still has its sights on those British overseas territories. Something else that we must continue to address is the defence consequences of the continuing danger of Scotland breaking away from the United Kingdom.

This evening’s debate is on the next defence and security review and NATO. Included in the motion is an item that says that

“resources authorised for use for current purposes be reduced”

by £618 million. There is a growing concern among senior British defence and security experts over the insistence on cutting defence expenditure. General Sir Peter Wall, the former head of the Army, has called for all parties to commit to the 2% target to help Britain to deal with unforeseen threats. The right hon. Member for North Somerset (Dr Fox), the former Defence Secretary, is quoted in today’s Daily Telegraph as saying:

“I think people feel that the Government’s first duty is the protection of the United Kingdom. We have to do what we need to, to make that happen, and I think that we have a commitment to Nato as part of our international treaty obligations to spend that 2 per cent.”

The Prime Minister was in my constituency today. I am told that he spoke from a normally empty warehouse belonging to a property marketing company. His big theme was housing—but not, sadly, the housing of our brave military personnel and their families. The Prime Minister is not strong when it comes to defence. On his watch, the size of the British Army will be reduced to what it was 200 years ago, at the time of the battle of Waterloo. It will be cut by a fifth by the end of this decade, to 20% smaller than it was five years ago, from 102,000 regulars in 2010 to 82,000 in 2020. However good the reserves are—and I strongly support the reserves —reducing the size of the regular Army is not in Britain’s national defence interests either at home or overseas.

Although the Prime Minister talked today about building new homes—in a town where the public are aghast at seeing so many green fields being lost to development—he was silent about the housing of families at Colchester garrison, five miles from where he spoke, on an industrial estate on the northern fringe of my constituency. The modernisation of military housing has been stopped across the UK, not just in Colchester. Last week the Deputy Prime Minister was in Colchester to announce financial support for housing for single former military personnel. What a pity the Prime Minister did not today announce the lifting of the halting of the modernisation programme of housing for the families of our brave soldiers, sailors and air force personnel. I have raised this issue in the House before and at meetings of the Select Committee on Defence, on which I serve, but halting the modernisation programme is a scandal, particularly when it is known that when the programme recommences, there will have been further deterioration, with the consequence that the cost to the public purse will be considerably greater. In the meantime, the families of our military live in housing whose condition is not always to the standard to which they are entitled.

In my constituency, I successfully argued that empty houses on the Army estate should be made available to house civilian families. That was done. The Government, via the Department for Communities and Local Government, funded a major modernisation programme of the former MOD houses and new build, for which there should be rejoicing. However, on the other side of the road there are Army houses, lived in by families of our soldiers, many of whom served in Iraq and Afghanistan, which have not been modernised. This is an insult and a disgrace. If the Government can find the money to modernise former military housing, why not the housing of serving military personnel? It is a moral obligation; the Government should do it.

The argument that the Government cannot afford this needs to be addressed head-on. I can identify how it could be funded—from the proceeds of the sale of radio spectrum that the Ministry of Defence no longer requires. Instead of the proceeds going to the Treasury, given that this is the sale of an MOD asset, why not allocate the money to pay for the modernisation of the houses of our military families? I repeat: the men and women of Her Majesty’s armed forces remain our most important asset. They and their families deserve to have decent housing to live in, and it is a disgrace that the Ministry of Defence and this Government have failed so many families.

20:40

[Mr James Gray (North Wiltshire) (Con)]

It is a pleasure, as always, to follow my hon. Friend the Member for Colchester (Sir Bob Russell), who speaks with passion for the military people of Colchester—nobody speaks better of them than him. He added to what has been a wide-ranging, interesting and well-informed debate of various topics, some broadly associated with the report on NATO that the Select Committee produced.

My hon. Friend the Member for Penrith and The Border (Rory Stewart), the Chairman of the Defence Committee, ably set the tone of the debate. I stood against him for the chairmanship, but let me say in public that I am extremely glad that I lost that particular election. I am glad that he won it, and I am pleased to stand behind him now and will do so in subsequent Parliaments.

We meet in what can be described only as interesting times. There is a strange coincidence—or is it a conspiracy—of events happening in the world. We have talked extensively, of course, about Russia, Ukraine, Crimea, threats to the Baltic states and the assassination of Nemtsov over the weekend—and who knows what the consequences of that will be, what it means or who did it? We have talked about ISIS, or Daesh as we prefer to call it. An important assault on Tikrit is occurring as we speak, and again, who knows what the consequences will be? We look forward to the much anticipated assault on and retaking of Mosul—potentially later this year, although I sometimes find it hard to imagine that it will actually occur.

We have heard from others, including my hon. Friend the Member for Aldershot (Sir Gerald Howarth), about events in the South China sea, and about cyber-warfare and so many other aspects of the world that are extraordinarily worrying and dangerous, but also extremely unknown. We simply do not know what is occurring in most of the world, and we do not know what we are going to do about it. I find it concerning that we in the UK, leaving aside NATO as a wider force, seem to be so unclear about what we are planning to do.

Several Select Committee reports over the last months have touched on this failing. Our report on Daesh, for example, said that our contribution to the opposition to ISIL was lamentably small. We are responsible for something like 6% of the airstrikes, which is of course useful—it is important that we are doing it—but it is none the less an extremely small contribution. We have a tiny number of soldiers in Iraq. I heard the other day that the number of our personnel helping to train in Sulaymaniyah in north-east Iraq, which we visited, is being further reduced rather than increased, despite their ambitions.

We have no real idea why we are doing things in Syria, but not in Iraq—apart from the fact that is what the motion in the House lay down. We have no real plan: we do not quite understand what we are seeking to do against ISIL in Iraq and Syria. We know they are bad people; we know we do not like the atrocities that are being carried out; but we do not really have a grand plan for what we intend to do about them.

The same applies to Putin. We know he is a bad man; we know he should not have redrawn the boundaries of Ukraine; we know that the Baltic states are under threat. When General Sir Richard Shirreff was recently in front of the Select Committee—he was either still serving or had just stepped down as Deputy Supreme Allied Commander Europe—it was interesting to hear him say so plainly that we should have permanent forces deployed in the Baltic states. He thought our people should be there permanently and at the very least that a large-scale exercise should take place there with equipment delivered to the Baltic states and so forth. That afternoon, my right hon. Friend the Member for Runnymede and Weybridge (Mr Hammond), then Secretary of State for Defence, said that Sir Richard was absolutely wrong and that we should have no troops in the Baltic states. We should not worry ourselves about that, he claimed, as the main threat to the UK remained a terrorist threat. He stood by the tier 3 categorisation of state warfare as described in the strategic defence and security review in 2010.

So I was astonished when, very recently, the Deputy Supreme Allied Commander Europe and the Secretary of State for Defence disagreed in the course of a single day on what our policy should be on the defence of the Baltics. That raises an issue that will be the subject of a forthcoming Select Committee report, namely our distinct lack of understanding of who we are in the world, what our purpose is, what we want to do in the world, how we are to achieve it, and what kind of armed forces we need in order to do that.

The 2010 SDSR is woefully out of date. It downgraded all the threats that we now face, judging them to be potentially insignificant. The national security strategy, which was published on the same day as the SDSR, did not have a clue about what we are doing today. I was disappointed to hear the Prime Minister say recently that he thought that it was worthy of “tweaking” in respect of a few details. I think that he was absolutely wrong. I think that the Arab spring, the Russians, ISIL, events in the South China sea, and so much else that is happening in the world today require a fundamental rewriting of the national security strategy from scratch. We must identify what is wrong in the world, and say what we are going to do about it.

The notion that we could produce a new national security strategy—tweaked, as the Prime Minister had it—a few weeks or months after a general election and produce an SDSR at the same time strikes me as laughable, as does the notion that we should link the two in a strategic spending review, thereby handing all the controlling levers to the Treasury. The idea that we should say to the Treasury, “You tell us how much we can spend” , and the national security strategy will then be tweaked in an attempt to make it fit in with how much we can spend—and, incidentally, we will continue to cut our armed forces for that purpose—seems to me to represent a fundamental misunderstanding of the way in which we should consider how we intend to position ourselves in the world.

Surely it is entirely reasonable, basic and straightforward to ask, “What is our role?”, and we as a nation should be asking that question. Are we to serve as part of the American forces, as the American chief of staff was quoted as suggesting in The Daily Telegraph this morning? Most definitely not. Are we to do as President Obama suggested in his letter to the Prime Minister, and say that we are a second-rate nation that no longer pulls its weight in the world? No; for my money, we are not. But if we are to fight our corner in the world, we must know how we are to do it, and we must do it through an absolutely clear national security strategy which sets out, not vaguely but precisely, what our aims are and how we are to deal with ISIL. Will we deal with ISIL by means of containment, destruction or defeat? We do not know. We need to set out precisely how we view President Putin and what we intend to do about that, precisely what we intend to do in the Baltic states, and precisely what we intend to do about so many other things.

Some time after the publication of the national security strategy, we must have a defence and security review specifying the assets that we need in order to realise the vision in the strategy, and some time after that, the Treasury must come along with a fundamental spending review and say, “Here is the money that you require in order to realise that vision.” I know that that will not happen. I know what will happen after the general election, whether we have a Labour or a Conservative Government: the spending review, the defence review and the national security strategy will be rushed out as they were before, entirely driven by mandarins in the Treasury. However, I think that it is worth our recognising, and worth the Select Committee’s stating, that we think that that is the wrong way of going about the defence of the realm.

We think that Britain is probably in a more dangerous state today than at any time since the second world war. We think that the nation hangs on the edge of a precipice over which it may fall, and that we, the United States and our colleagues in NATO must act urgently to do something about it. Tinkering around with 2% or not 2%, tinkering around with the current sclerotic decision-making processes in the Ministry of Defence, and tinkering around with cutting our armed forces and trying to patch them up here and there is not the right way in which to proceed. We are in an incredibly dangerous place. We as a nation, and we as a House of Commons, must act now and act decisively to put that right.

20:49

[Richard Benyon (Newbury) (Con)]

This has been one of the best debates in which I have taken part during my few years in the House. It is a great pleasure to follow my hon. Friend the Member for North Wiltshire (Mr Gray), a fellow member of the Defence Committee. As he said in his powerful speech, the tone was set by my hon. Friend the Member for Penrith and The Border (Rory Stewart), who produced an outstanding summary of the difficulties that we face. If I could pick just one other speech, it would be that of the hon. Member for Birmingham, Edgbaston (Ms Stuart), who said things that were so similar to what my hon. Friend the Member for Penrith and The Border said to the Conservative dinner in west Berkshire in January that it makes me wonder whether she was there. It was a fantastic speech and I agreed with it.

At the same time as President Putin was exerting his pressure on Crimea, my right hon. Friend the Member for Mid Sussex (Sir Nicholas Soames) gave me the speech that his grandfather had made in the Munich debate in 1938. I urge all Members to read that speech and to take out certain place names and individuals’ names and replace them with more contemporary ones. If they do so, they will see how prescient that 1938 speech was, and how it applies to the crescent of instability that faces us.

My hon. Friend the Member for Penrith and The Border spoke about an arc of instability around the eastern borders of Europe, but I would suggest there is a crescent of instability that starts in Nigeria and goes through the Sahel and the Maghreb. It includes parts of the horn of Africa and east Africa, and, of course, Iran. It then goes through to the tragedy of Syria and Iraq and up to the difficulties we face on Russia’s western border and the threats we have to consider in an article 5 sense in terms of the Baltic states. That is a sobering canvas for us to consider in our debate.

On Ukraine and the Baltic states, in President Putin we have the leader of a powerful nation that has surrendered all pretence of adhering to the concept of rules-based governance. That is profoundly worrying.

I agree with my hon. Friend that the world is in perhaps the most dangerous state it has been in for decades, and it is in that context that we encourage a future Government to look at our defence posture in the years ahead. As my hon. Friend the Member for Broadland (Mr Simpson) said, this process cannot, and should not, be driven through the silo of the MOD and how it is funded. It has to be looked at across whole area of government and beyond—not just in terms of the Foreign and Commonwealth Office, our intelligence services and the Department for International Development, but in the context of our alliances, certainly with our most important neighbour, the United States, but also with France, our closest neighbour. I am particularly interested in that alliance. I am not as hopeful about that as I would like to be, but I believe we should be looking at that in the context of the Lancaster House agreement. I have learned profoundly to respect France’s defence forces. I have seen them operating in places like Mali. France has its own economic problems, but I feel there is the makings of a good strategy, as it has a footprint in certain parts of Africa and elsewhere which we should be supportive of, and we have a footprint in certain places, such as the Gulf, where we can take a lead, and together we can work in ways that benefit both of us.

My hon. Friend the Member for Penrith and The Border, the Chairman of the Select Committee, mentioned a point to do with languages, and it is something that I go on about. I strongly believe that we should make that a virtue in the armed forces, particularly among those who want to acquire staff rank and beyond: they should be rewarded if they master a language, whether that is French, Arabic, Russian or something that we feel we may have need of in the future. There has been a lamentable lack of language skills in the past; we seem to have forgotten about that. To the credit of the Foreign Office, it is now trying to encourage our diplomats to speak many more languages, and we should do so among our armed forces as well.

My hon. Friend spoke about the two types of warfare that we face. We will not only face asymmetrical conflicts versus the al-Qaeda franchises that exist around the world—to which I would add extortionist campaigns by terrorist based organisations, perhaps in failed states such as Somalia, and the piracy conflict, which will be ongoing—but face what, for want of a better term, I shall call a conventional threat. My hon. Friend described that threat much more eloquently than I ever could. However, I suggest that there could be a third element, which I would describe, almost oxymoronically, as non-kinetic wars.

On the asymmetric counter-insurgency conflicts, there is great thinking—perhaps in the Government, perhaps in our normal institutions, but also in academia—about how we can fight using smarter, shorter and more intelligent interventions. We are unlikely to go in again in the way we did in recent conflicts. We are unlikely to build another Camp Bastion in the desert and remain there for a decade. We shall need less mass in terms of personnel, and that mass could be proxied to the host nation. The deployments will be shorter, but they will require certain skills that we are very good at delivering, including training, equipping, mentoring and carrying out humanitarian work. They will also involve the intelligent use of special forces and of specific equipment such as drones.

On conventional warfare, I entirely agree with the pervading consensus in the Chamber about the need to respond dramatically in regard to thinking, to equipment and to matériel in the context of an article 5 response. If there is one thing that should keep us awake at night, it is the threat from the extraordinary recent developments on Europe’s eastern border.

Non-kinetic warfare involves carrying out defence activities now so that we do not have to fight wars in the future. It is about looking at countries in which instability could emerge, and about engaging with them across a whole spectrum of activities—not only through the use of military personnel but through diplomacy and intelligence and the use of the private sector, non-governmental organisations and our aid budget—to stabilise them so that they do not descend into the kind of instability that would require us to fight an expensive war in the future. It is with pride that I say that the new 77 Brigade, which is based in my constituency, is starting to develop an interesting new style of combating this kind of threat. It is built on the finest traditions of our armed forces: let us remember the work of T. E. Lawrence and Orde Wingate and how we rebuilt parts of France and Germany after the war.

[Ms Gisela Stuart]

I absolutely agree with the hon. Gentleman, but must not those forces also have a clear sense of what they are fighting for, what they believe in and what they stand for? The new 77 Brigade, which is a great idea, will not be effective if we in this place do not give it a clear sense of why it is carrying out its activities.

[Richard Benyon]

I entirely agree with the hon. Lady.

Non-kinetic warfare also involves thinking about the way in which the great figures of the past behaved. To use modern management-speak, they thought outside the box. Sitting in some techie office in London, there is probably a 20-stone IT expert who knows more about social media than anyone in the armed forces ever will. He will never pass a battle fitness test, but he might be just the person to destroy the kind of social media development that we have seen Daesh operating in parts of the middle east. I really hope that that kind of innovative thinking will be carried forward.

I also hope that we concentrate on the need for intelligence gathering and recognise the lamentable failings of the past 50 years—relating, for example, to the Falklands war, the Arab spring and 9/11. There have been failings in almost every conflict, and it is not just us: let us not forget the Yom Kippur war. None of those attacks was foreseen, and our intelligence forces need to be better equipped and better skilled.

I agree entirely with the figure of 2%, although it is of course a political construct. We could achieve a figure of 2% by having more military bands and spending money in silly ways. Also, 1.9% well spent might be better than 2.1% badly spent. It is a line in the sand, however, and it is one that our friends and our potential enemies will see as vital as we tackle the crescent of instability that surrounds Europe’s southern and eastern borders.

21:00

[Crispin Blunt (Reigate) (Con)]

I only hope that the speech I am about to make can begin to get close to the excellent contributions we have heard from hon. Members from all parts of the House—it really has been an excellent debate. I agree with my hon. Friend the Member for Newbury (Richard Benyon) that the speech by the hon. Member for Birmingham, Edgbaston (Ms Stuart) was extremely instructive, and I want to take it as my starting point, because it is essential that we identify what our role in the world is. We have avoided doing that ever since the end of the cold war and we have tried to fudge things. We are now living with the price of trying to “punch above our weight”. That may have sounded sensible when Douglas Hurd said it 20 years ago, but 20 years later, after all the conflicts that have happened in between, we have been left with the consequences: the tactical and strategic failure in Basra and in Helmand, where we simply were not prepared to commit sufficiently in order to carry out the military operation and deliver the political objective by the military means we put to it.

The hon. Lady threw down the challenge: what is our role in the world to be? I am an unashamed dove; it is my belief that our continuing aspirations to play some great power role in the world is a conceit, and a misleading and expensive one. So in the terms she put it, I am looking at greater Denmark and a mercantile policy to support British interests around the world. From that base, my conclusions ought to be instructive, although I understand that many of my right hon. and hon. Friends come from a different place.

The world has significantly changed since the end of the cold war. I would be the first to defend the peace dividend referred to by the hon. Member for York Central (Sir Hugh Bayley), pointing out the drop in defence expenditure after the end of the cold war. Absolutely the right thing to do in the circumstances of the time was to take those savings and reduce the defence budget from 3.5% of GDP when I was a soldier to 2.5% by 1997. But what has happened since then to Russia and what is now happening with ISIS and the rise of Islamic fascism—there is also the open question of China and its role in the world to consider, but this is particularly about the first two things—should give us serious pause for thought.

Churchill said in October 1939:

“I cannot forecast to you the action of Russia. It is a riddle wrapped in a mystery inside an enigma”.

Knowing that my historian friend, my hon. Friend the Member for Broadland (Mr Simpson), is with us, we should point out that Churchill went on to make a prediction in that statement, saying:

“I will proclaim tonight my conviction that the second great fact of the first month of the war is that Hitler, and all that Hitler stands for, have been and are being warned off the east and the southeast of Europe.”

That was triumphantly wrong.

What should give us real pause for thought is what is happening in Russia now. If ever there was a wake-up moment, it is not just Crimea and what the Russians are doing in Ukraine; it was the murder of Boris Nemtsov last Friday night and the fact that only a few tens of thousands of people went on to the streets of Moscow. What happened there was the dying gasp of liberal Russia. We have seen the same thing before; it was what Mussolini did to his opponents in fascist Italy. The alarming thing is the popular support that Putin enjoys—the statistics were given again by the hon. Member for Birmingham, Edgbaston. He is a popular ruler and one in difficulty, which is why he is exploring the execution of power in the way he has been doing. That has taken us away from where we would have hoped Russia would have been, within the family of nations and with the basic agreements of how to conduct international diplomacy.

Alongside Russia, we face the rise of Islamic fascism. That is now on a scale far beyond the consequences of 9/11 and the activities of al-Qaeda; ground is now being occupied. We would do well to remember just how attractive an ideology fascism was, and in its guise as Islamic fascism it is proving attractive to members of our own population and to people from around the region, who are flocking in vast numbers, alarmingly, to put their lives on the line to support it. We underestimate the nationalist popularity of Putin’s strategy and Russia, and ISIS and the images it presents, at our peril. That means we now have to take these threats extremely seriously.

I wish to focus now on what posture we should take. Having said that I do not want the United Kingdom to play a great power role but a more limited role, it is absolutely right that we face up to our responsibilities as a partner in NATO, which is what this debate is about. I understand the politics behind the 2% figure: we need to get NATO expenditure to a level that is at least rising for most of its members. However, 2% is an artificial number and, given the threats that we face now, it is inadequate. Whether we are aspiring to play a great power role or to pursue a mercantile role with no imperial pretensions, our strategic posture as the United Kingdom is woefully insufficient. The moment that we lost the maritime patrol aircraft from the strategic defence and security review at the beginning of this Parliament was the moment that we ceased to have the right suite of powers and intelligence capability to hang together. We have acquired the aircraft carriers and we will eventually acquire the aircraft to go on them, so we will have some status there, but we need to work out how they will form part of our strategy.

I come back now to the decision that we face in 2016, to which the hon. Member for Barrow and Furness (John Woodcock) referred. He complained about the lack of Astute submarines, but we are committed to programme expenditure worth some £109 billion with the renewal of Trident. I have been very impressed by the new report from CentreForum about retiring Trident and looking for an alternative proposal. It demolishes the case for the Trident alternatives review, saying that it was based on a false premise. We need to look at the idea of going back to a free-fall bomb. [Interruption.] If the hon. Member for Plymouth, Moor View (Alison Seabeck) wants to intervene, I will happily give way.

[Alison Seabeck (Plymouth, Moor View) (Lab)]

indicated dissent.

[Crispin Blunt]

I—

[Dr Julian Lewis]

May I say to my hon. and gallant Friend that it is no good contrasting the building of the Successor-class submarines with the Astute-class submarines, because if we do not build the Successor submarines—I am not saying that that is a reason to have a deterrent when we otherwise would not have one—there will be a huge gap between the ending of the Astute hunter-killer programme and the next hunter-killer programme, in which all skill in building submarines will be lost?

[Crispin Blunt]

That is the point I wish to address. We will invest an enormous amount in one weapon system for one task only. If we choose to invest in a free-fall bomb and 48 strike attack aircraft in order to deliver that bomb, it would at least put doubt in the mind of our opponent because we would have a capability that we can deliver in extremis. Although we would not have the total protection that a submarine launch system would give us, it would be enough. When it comes with the potential to have five additional Astute-class submarines, four additional Type-26 frigates, six airborne warning and control systems and eight long-range maritime patrol aircraft, we should think about the capability that we will not have if we commit to Trident. If we have a deterrent that is suitable for the future role of the United Kingdom, we will ensure that we have some of the conventional capability that will be absolutely necessary.

There was a very good piece in The Times on Saturday by Matthew Parris. His chilling conclusion, with which I agree, is that we must now prepare seriously for war. We have not been in this position or seen the scale of engagement that will be required since the cold war, so 2% does not cut it. Mis-investing our limited resources, as we will be doing if we keep the deterrent in the way that is proposed, does not cut it. If we are going to put our soldiers into action, there has to be certainty that they will be properly equipped, capable of acting and capable of doing so in collaboration with our NATO partners. That is why the recommendations of the Defence Committee about forward basing and looking again at something like the Allied Command Europe mobile force must be looked at by the Government. I am afraid to say that the resources that we are putting towards our strategy are simply not enough.

21:10

[Neil Carmichael (Stroud) (Con)]

It is a great pleasure to speak in this debate and to follow my hon. Friend the Member for Reigate (Crispin Blunt), although I disagree with his conclusions about Trident. We need a deterrent of that type. I hope we will never need to use it, but having it will probably ensure that we do not need to use it. That is the key point about the deterrence of Trident. I am firmly of the view that the Government are right in the course of action they have adopted.

I agree with other hon. Members that 2% of GDP should not just be a target, but should eventually be exceeded. The Chairman of the Defence Committee is right to link 2% to growth. Of course, when there is growth, that 2% becomes bigger. The key point to bear in mind is that if we do not get our economy right, we will not have growth. Defence will therefore suffer if our economy plunges again. The actions that we are taking through—dare I say it—the long-term economic plan and in reducing the deficit are part of our security, because they enable us to afford the things that we want and need in terms of defence.

The second important argument for spending 2%, as most people have noted, is that we must provide leadership to our fellow NATO members. Pledging 2% and encouraging others to meet the 2% target is part of our defence strategy and should remain so. We are right to spend 2% for those two reasons and probably a whole lot more.

What we spend the money on is also important. I have been struck in the course of the debate by the number of people who have said, “We did not think that was going to happen,” or, “That came as a surprise to us.” Our defence expenditure therefore has to have flexibility built in. We have to bear it in mind that we might have very different enemies from those we have had in the past in terms of capacity, style and objectives. That certainly applies to Russia, which has various different strategies and ways of challenging and testing us, as has been said. Islamic State presents a completely different challenge that requires a response that is quite out of the ordinary in terms of defence activity. In spending the 2% of GDP, we must bear in mind the importance of flexibility.

That point was well made, in a slightly different way, by my hon. Friend the Member for Broadland (Mr Simpson), who linked defence, international development and the activities of the Foreign Office. That is a big sum of money in total. It is wise and strategically sensible to think about the whole security budget, because each part of that budget relates to a meaningful way of protecting Britain’s interests. With reference to the Foreign Office, it is important that we know what is going on. We therefore need our diplomatic representatives and everybody else connected with our embassies, and we must ensure that our embassies are properly equipped and staffed. Again, the Chairman of the Defence Committee made that point very well when he talked about the Baltic states.

The key question is: what are our strategic interests? I do not think that we have yet settled what they are. As we have already noted, things happen and they are surprising. We need to find a strategic plan that defines where we want to be, the kind of responses we should have and the objectives we want. That can only be done in conjunction with our allies. I am thinking not just about the United States of America, which is, of course, a natural ally, but about our allies in Europe. The threats we are discussing are to Europe as much as to us and we therefore have a responsibility and a duty to engage with our European partners to ensure that their strategy is not dissimilar to ours. Arguments in front of an enemy between allies that are supposed to be dealing with that enemy always end up in confusion and a lack of capacity.

We need to define our geographical area as well as our capacity. By this, I mean that we must think about the middle east, northern Africa and beyond. I have learned over the past few years the value of simply being around and paying attention. That is certainly the case with the Falklands and Antarctica. Britain’s presence there guarantees a powerful role is an important geopolitical area. That is a maxim we should apply elsewhere, but to do so we must understand our strategic objectives. That is why I think it is critical that any review in the not-too-distant future bears in mind that situation.

This is a basic point, but we must always think about the politics when we think about engagement with armed forces—not about the politics here, but about the politics of where we are. We have learned that often in the past. We were very clear about what we wanted to achieve in the Falklands. There was no political dispute; we had to retake the Falklands, period. We had a clear objective with a clear political outcome and it worked. We have been less successful when we have been less clear and sure about our strategic objectives. The obvious example is Iraq. We should not have gone in in the first place and when we got there we started making even more mistakes in the implementation of the strategy for the responsibilities we took once we had removed Saddam Hussein. The difficulty that Iraq and the region still face is that we were not sure enough about what we were doing, we lacked strategic certainty and we therefore left a problem that was either bigger or still big enough, and that has had ramifications ever since.

In short, yes to 2%; yes to a full commitment to NATO; yes to a recognition that we must have a defence force that is flexible, modern and bristling with high-technology and that there is fluid enough military thinking to be able to respond to the challenges that emerge on an irregular and often surprising basis; and yes to defining, understanding and seeing through our political objectives.

21:18

[Dr Julian Lewis (New Forest East) (Con)]

It is always the peril for the last ship in the convoy that it is the most likely to be torpedoed. As the last ship in the Back-Bench convoy in this debate, I shall resist the temptation to be diverted from holding on to my strategic aim—even though I am sorely tempted by the contribution of my hon. and gallant Friend the Member for Reigate (Crispin Blunt) to use up the entire remaining eight-and-a-half minutes talking about Trident. Instead, as an effort in intellectual discipline I shall keep that subject to last to see whether I can get through the other items on the agenda, which are three: the question of process; the question of resources; and the question of content.

First, on the question of process in relation to the strategic defence and security review that is due in 2015, why should it be in 2015, how long should it take and who should do it? We have two recent examples of strategic defence reviews: one in 1998 and one in 2010. The one in 1998 was strategic but unfunded. The one in 2010 was funded but unstrategic. We do not need another unstrategic review, but that is what we will get if we rush the process. Something that the Labour Government were very right to do when they came into office in 1997 —I am delighted to see my right hon. and gallant Friend the Member for Mid Sussex (Sir Nicholas Soames), a former Defence Minister, agreeing with this point—was to take about 18 months to draw up the strategic defence review, as it was then called; and they did it comprehensively and inclusively. There was nobody with something worth contributing to the process that led to the review who was not given an opportunity to do so, and we should do that next time too.

[Sir Bob Russell]

Can my hon. Friend recall whether on that occasion the Treasury intervened and tried to trump what the review sought to achieve?

[Dr Lewis]

I am doubly grateful to the hon. Gentleman for asking a question that I cannot possibly answer, having been in opposition at the time, because it gives me extra time and allows me to direct him to the shadow Minister, who I am sure will be able to answer it when he sums up.

The next question is who should do the strategic defence and security review? I must say that I disagree with my hon. and very learned Friend the Member for Broadland (Mr Simpson)—“learned” in the academic sense of that word—when he paints a picture of how wonderful the process of the National Security Council and the national security strategy is. Frankly, I am not impressed with it. I thought that the strategy document itself was apple pie and motherhood. I did not see much in it other than a ranking of tiered threats, most of which were fairly obvious, and those that were not may well turn out, in relation to state-against-state conflict being ranked in the third tier, to be absolutely wrong.

I am concerned about the decision-making process in defence. I will not go into that too much now because, as the Chairman of the Defence Committee, which I have recently had the privilege of joining, is well aware, we are about to produce a report on that very subject. Yet I would like to flag up something that I hope will appear in his draft in due course, and it is this: when we are trying to work out a sensible, comprehensive, coherent and well-informed strategy, it is useful to have substantive contributions from Ministers and civil servants, but we also need contributions from the military.

We appear to have dismantled the collective giving of military advice on strategy to politicians by the chiefs of staff, along with the healthy tension between them and the politicians that contributed so much to the outcome of successful campaigns in decades gone by. I am not impressed when we find that the whole burden of giving military advice on strategy to the Government falls on the shoulders of the Chief of the Defence Staff and the immediate chain of people below him, when in fact that used to be the collective responsibility of the heads of the armed services. I am not impressed when we find that the civil service has done away with what has been termed “domain competence” at the highest levels. We can find ourselves, as I do on the Defence Committee, facing a permanent Under-Secretary of State, the head of the Ministry of Defence, with next to no background in defence himself, and hearing him tell us with great pride that the new head of the Army is pleased to look on himself as a chief executive officer for his service. We are not going to get sufficient military input from that sort of configuration. We are getting non-specialist civil servants, we are getting the military insufficiently included in the process, and we are getting politicians flying by the seat of their pants. It is not good enough.

In his own excellent speech, my right hon. and gallant Friend the Member for Mid Sussex did not have time, I am delighted to say, to refer to an article by Max Hastings which appeared in The Guardian on 8 November 2005. It is headed “Our armed forces must have a voice in how to defend us” and it states:

“strategy in its proper sense—a doctrine for the prevention and prosecution of war—has been allowed to atrophy. Very few people in uniform or out of it, within the Ministry of Defence or beyond it, devote intellect and energy to anything much beyond saving money and getting through today. And those who do so are firmly discouraged from allowing any hint of their ruminations to escape into the public domain, to fuel an intelligent debate.”

Given that the entire strategic role is now devolved on to the shoulders of just the Chief of Defence Staff, it was disturbing to me to read—I do not know whether it is true—that the CDS was instructed by his political masters not to deliver a lecture. If that is true, it is appalling. [Interruption.] I am delighted, again, to have that sedentary endorsement from my right hon. and gallant Friend the Member for Mid Sussex.

On resources, I am thrilled that there has been such unanimity about recommending us to put forward the NATO minimum contribution of 2% of GDP for defence. Can hon. Members imagine anything worse than signalling to a powerful adversary that we are going to send 75 military personnel as advisers into a non-NATO country which we are not able and not obliged to defend, much as we sympathise with it, but for the first time since the 2% formula was set, we are in danger of not meeting it ourselves?

[Sir Hugh Bayley]

I am getting slightly tired of Government Members talking up 2% as if it were a great achievement. Five years ago it was 2.5%, so the defence budget has been cut over the past five years by 20%. When Labour came to power it was £22 billion. When we left power, the defence budget in cash terms was £39 billion; now it is £34 billion—a real-terms cut. When are these cuts going to stop?

[Dr Lewis]

I entirely agree with the thrust of that intervention, although as I stated in an intervention on the hon. Gentleman, I well remember Tony Blair saying in, I think, 2007 that over the 10-year period that he had been in office, the defence budget had remained fairly constant at 2.5% of GDP, if the cost of the military operations in Iraq and Afghanistan was included. The situation is therefore even worse than the hon. Gentleman thinks, because in effect core defence expenditure also declined under his Government. Nevertheless, the thrust of what he says is on the right lines.

I shall quote very briefly from the Government’s response to the report that the Defence Committee produced before I joined it. The Government replied on 27 October 2014:

“NATO Allies have also collectively agreed to reverse the trend of declining defence budgets and aim to increase defence expenditure in real terms as GDP grows and direct defence budgets to be as efficient and effective as possible. Allies currently meeting the NATO guidelines to spend a minimum of 2% of their Gross Domestic Product (GDP) on defence will aim to continue to do so. . . Allies whose current proportion of GDP spent on defence is below this level will halt any decline in defence expenditure; aim to increase defence expenditure in real terms as GDP grows; and aim to move towards the 2% guidelines within a decade with a view to meeting their NATO Capability Targets and filling NATO’s capability shortfalls.”

When the Prime Minister came back from that NATO conference in Wales, he made a statement from the Dispatch Box, speaking very much along those lines. So I thought, “I have not always been as immensely helpful to the Prime Minister as I might have been, because he has done some things I really couldn’t stand, such as putting off the decision to sign the Trident main-gate contracts till 2016, when they should have been decided in this Parliament. So I’ll ask him a helpful question.” I asked, “Will the Prime Minister then give an undertaking that, as long as he remains Prime Minister, that 2% target will be met?” To my dismay, I found that that was not a helpful question at all. It was an unhelpful question, so I have been asking it time and again ever since.

I will now be unable to get on to the content of the next strategic defence and security review, which will have to wait for other debates. I will not even be able to rebut in more detail what my hon. and gallant Friend the Member for Reigate said about Trident, but I am glad that the House did not agree with him. I simply point out that this 2% issue is not going away. We will have another debate on 12 March, and I hope that everyone who has spoken today will come back then to continue the argument.

21:30

[Mr Kevan Jones (North Durham) (Lab)]

This has been a very well-informed debate in which we have had 15 speakers. I congratulate the hon. Member for Penrith and The Border (Rory Stewart) on his opening remarks, which showed that the House made the right choice in selecting him as Chair of the Defence Committee. He not only put forward his usual well-informed arguments but made a very convincing case for why we are facing certain threats from Russia, in particular.

The main issue has been spending 2% of GDP for our NATO commitments. That was mentioned by the hon. Gentleman, by the right hon. Member for Mid Sussex (Sir Nicholas Soames), by my hon. Friends the Members for York Central (Sir Hugh Bayley) and for Birmingham, Edgbaston (Ms Stuart), by the hon. Member for Gosport (Caroline Dinenage), by my hon. Friend the Member for Ilford South (Mike Gapes), by the hon. Members for Aldershot (Sir Gerald Howarth) and for North Wiltshire (Mr Gray), and by the hon. Member for Newbury (Richard Benyon), who called the 2% figure a line in the sand. The hon. Member for New Forest East (Dr Lewis) also spoke in favour of it, as did the weaponised dove, the hon. Member for Reigate (Crispin Blunt), who argued for more than 2%, and the hon. Member for Stroud (Neil Carmichael).

[Crispin Blunt]

I am interested in exploring what Labour would do. In 1977, even when the economy was a disaster, a Labour Government committed to a 3% year-on-year increase in defence expenditure at a time when we were facing a similar threat scenario to that which we face today. Is Labour committed even to a 2% floor?

[Mr Jones]

If the hon. Gentleman lets me get on with my speech, I shall tell him what our position is.

Every Conservative Member has called for 2% or more, but in a few weeks’ time they are going to stand for election on a manifesto that would see a cut in our defence expenditure. I refer to the Chancellor of the Exchequer’s autumn statement, which clearly ring-fenced spending on schools, health, and overseas aid. The hon. Member for Aldershot mentioned overseas aid, which I know is dear to his heart. According to the Office for Budget Responsibility, 60% more cuts have got to take place, so if we take the ring-fenced spending out, we see that the rest of the cuts that will have to be made amount to about £86 billion. Of that, it is estimated that £9 billion will have to come from defence—some 36% if we take the figures up to 2020. Some are saying that the figure may be in the region of 8%. The Conservatives have form on 8% margins, because that is the level at which the coalition cut defence expenditure when it came to power.

We have heard it argued that the Prime Minister gave a commitment to, and lectured others about, the 2% NATO target. I understand that today he has been in the constituency of the hon. Member for Colchester (Sir Bob Russell), where he was asked about the commitment to 2%. As we expect from the Prime Minister, he dodged the question. He said that the equipment budget would be increased by 1%. He also made the remarkable statement that there would be no further cuts in the size of the Army. In that case, the situation for the defence budget is even worse than has been said, because the 9% cut that the Chancellor is arguing for will fall on only 55% of the budget. If the equipment budget has been protected, there are only two ways of keeping the Army intact while cutting 55% of the defence budget by 9%—by taking out of service equipment that is there today or by reducing the number of personnel.

The Prime Minister needs to level with the British people and be honest about what is being proposed. This is a charade. I do not doubt that the Conservative Members who have spoken—I know them all very well and they are very strong defence advocates—genuinely believe that more money should be put into defence or that the 2% NATO commitment should at least be met, but they need to challenge the Prime Minister on the figure. There is no way that the Chancellor’s cuts can be met by 2019-20 without affecting the 2% we currently give to NATO.

[Mr Gray]

I know that the hon. Gentleman is looking forward to being the Minister for the Armed Forces in the incoming Labour Government. Talking of levelling with the British people, would a Labour Government not do what he says we are about to do?

[Mr Jones]

I will level with the hon. Gentleman. What I will not do is what the Prime Minister and the then Members of the Opposition did at the last election by promising larger armies, more ships and more expenditure on the armed forces. The first thing they did when they got into power was cut the size of the army. Our position is very clear: we will meet the figure for 2015-16, but, as my hon. Friend the Member for York Central has said, that is still a reduction of £600 million according to the figures under discussion. Moreover, if we look at what the Defence Secretary has been good at, we will see that some £400 million has been given back to the Treasury over the past five years. That money was not even spent, which begs a question about the commitment.

Our strategic defence review will look at what most people want, as we did in 1997. It will be a proper defence review that looks at the bigger questions that many Members have raised today about our role in the world.

[Sir Gerald Howarth]

I am grateful to my good friend the shadow Minister for giving way. The reason we are in this pickle is that we inherited a budget deficit of £156 billion. I wonder whether he would accept that putting the public finances back in order was the immediate priority and that we have been successful in doing so. [Interruption.] We now have the fastest growing economy in the western world and that is why we want a 2%-plus increase in defence.

[Mr Jones]

But the hon. Gentleman needs to be honest about the time scale. I thought he was going to refer, as one Member did from a sedentary position, to the mythical £38 billion black hole, which was designed to disguise the Government’s 8% cut. The Defence Committee’s report of November 2011 says:

“We note that the MoD now state the genuine size of the gap is substantially in excess of £38 billion. However, we also note the”

former

“Secretary of State’s assertion that the ‘for the first time in a generation, the MoD will have brought its plans and budget broadly into balance, allowing it to plan with confidence for the delivery of the future equipment programme’. Without proper detailed figures neither statement can be verified.”

I have challenged numerous Ministers on that. It is one of those things that was thought up in central office during the election and then kept getting repeated.

Serious points have been made in today’s debate about Britain’s place in the world, including by my hon. Friend the Member for Birmingham, Edgbaston and the Chair of the Committee. We need to ask the question that we asked in 1998: what is our role in the world and is there a wider debate to be had with the British public? I think there is, but this Government are not conducting the latest defence review in a constructive way. In 1998, as the hon. Member for New Forest East has said, we had a broad, inclusive debate. Even in 2010 we produced a Government Green Paper setting out the issues, but as soon as the coalition got in the Treasury-led review was completed in record time. This time the process needs to be thought out.

Things do not bode well, however, because the Ministry of Defence will not even tell my hon. Friend the Member for Gedling (Vernon Coaker) what questions it will ask in the review, while the Prime Minister’s view is that all we need is a light tweak. We live in a very changeable world—we have had a very good debate today about Russia and the threats we now face from Islamic terrorism—and the idea that all we need is a light tweak is a huge mistake.

[Neil Carmichael]

Will the shadow Minister tell the House whether or not the Labour Opposition agree with the 2% target?

[Mr Jones]

I have made that clear. I will not promise things I cannot deliver, which the hon. Gentleman’s party did at the last election. He will have to stand up in front of his electorate in Stroud in May and say that he disagrees with the Prime Minister and will not sign up to the austerity Budget outlined by the Chancellor in the autumn statement. He needs to be honest with his constituents by saying that, because that is what will happen to the defence budget. He can make all his points about our position, but we have been very clear that we will meet the 2015-16 targets.

The hon. Member for Broadland (Mr Simpson)—I will call my fellow war graves commissioner my hon. Friend—made this point about those in the Ministry of Defence. I think he said that they were rolling the logs along the path, and they have in certain ways. What is needed, and this is part of our zero-based budget review, is to look in detail at exactly how our defence budget is spent. There is an argument for efficiencies that can be made, and they will be made.

The defence review must involve the largest possible number of people; otherwise it cannot be done. If the Treasury is just let loose, as it was in 2010, it will have the same result. I will say something that is perhaps out of character, but when he was Defence Secretary the right hon. Member for North Somerset (Dr Fox) did at least try to keep the Treasury dogs from the door, although he unfortunately failed.

[Mr Keith Simpson]

Does not the hon. Gentleman, as well as my hon. Friends, accept that we can all caricature the Treasury for obvious reasons, such as in 1998 and 2010, but if we sat in the Treasury and looked at the way in which the Ministry of Defence under successive Governments has been totally incompetent—in handling budgets, the overruns and the way in which individual services have competed with each other—to the detriment of national defence, surely we would agree that decisions should be collective? The Treasury does not necessarily have to have a veto, but it has a point of view and should be listened to.

[Mr Jones]

I do not disagree with the hon. Gentleman. When I chaired the value for money group in the MOD during the previous Government, it was certainly my experience that the Treasury can make a contribution. Unfortunately, it sometimes has a very blinkered view of the world, but it has to ensure that every defence pound we spend is actually well spent.

May I turn to the issue of soft power, which was raised by my hon. Friend the Member for Ilford South and by the Chairman of the Select Committee, the hon. Member for Penrith and The Border? I always think “soft power” is a strange use of words because when we look at what is happening in Russia, we can see that its use has been very effective. Soft power is part of the Russian strategy not only in changing the complete news agenda on the invasion of Crimea, but in continuing to do the same. My hon. Friend the Member for Ilford South made his point in relation to the World Service, which is again a case of a short-term saving having long-term consequences. We need to address the issue that what might be seen as public relations or news management is clearly part of the Russian armoury for changing the agenda on Ukraine and other parts of the world. We need a similar type of force to make sure that we not only influence the debate, but can react very quickly to events as they happen.

The hon. Member for Colchester raised issues about the Falkland Islands. The Labour party is certainly committed to ensuring that the people of the Falkland Islands determine their own future, but that must be taken into account in the future defence and security review. Given his long-standing interest in housing, I am surprised that he has not thanked the Labour Government for the investment they put into Colchester and Army housing. It was sad that when this Government came to power they stopped the modernisation programme as well as the scheme that allowed members of the armed forces to buy their houses, although I know that has now been resurrected under a different heading.

The threats we face are numerous. Can we predict the future? No we cannot. We must ensure that the armed forces at our disposal are linked not only to our security networks and to MI5 and MI6, but to our homeland defence. That can be achieved only if a proper security and defence review in 2016 covers all those aspects, so that when we need the brave servicemen and women on whom we rely, we can ensure that they have the equipment and training to carry out that role. We must also deter aggressors who are clearly working to affect the way of life that we have all come to respect and take for granted.

21:46

[The Minister for the Armed Forces (Mr Mark Francois)]

I, too, thank the House of Commons Defence Committee for producing this important report and giving us the platform to discuss some of the key defence issues facing the alliance and the United Kingdom today. The Chair of the Committee introduced the debate in characteristically eloquent fashion, on which he was complimented by a number of hon. Members. I will add to those compliments and point out that I think he gave a very forceful opening speech.

The report makes interesting reading. It argues in paragraph 102 that events in Ukraine were a “wake-up call”, and for reasons that I will come on to, I agree. As the Committee acknowledges in paragraph 97, these issues are not just a matter for the Ministry of Defence, but for the whole Government. The pan-governmental national security strategy will need to be updated to take account of changes to the international situation over the last five years. The importance of the NSS was referred to by the Committee Chair, as well as by my hon. Friends the Members for Broadland (Mr Simpson), for North Wiltshire (Mr Gray) and for Stroud (Neil Carmichael). Although this debate has understandably focused on the strategic defence and security review, the next SDSR must also take account of any changes to the NSS into which it should dovetail. As the Committee recognises, events in Ukraine have shone a light on different types of conflict that the NSS must take into account as it develops strategies to mitigate the challenges we face.

The last SDSR was written while our forces were heavily engaged in Afghanistan. We have now brought our combat troops home, but as we move to an era where there is a continuing challenge to the rules-based international order, we must examine the full scope of defence to ensure that we are best prepared. Equipment, people and investment are key elements, but mindset is important too.

Arguably, the last 10 years or so have seen us become increasingly proficient at conducting combat operations with a counter-insurgency element, at reach, against a technologically inferior but none the less determined enemy. In that context I pay tribute again to those who served us in Afghanistan. We asked much of them and they did us proud. I was at the last homecoming parade into the Palace of Westminster for the troops of 102 Logistic Brigade and the 20th Armoured Infantry Brigade. It was a humbling experience and I pay particular tribute to the 453 service personnel who lost their lives in that conflict. Across the whole House we will surely agree that they must never be forgotten.

We now need to rebalance and become highly proficient in a range of potential operations across the globe, and against a range of potential threats. We will need to think differently; we may need to react quicker. We will need to look into the future and seek to prepare now. The world does not stand still and events will not give us rest: there is ISIL in the middle east, referred to by several hon. Members; Boko Haram in Africa; and of course our commitment to combat Ebola in Sierra Leone via Operation Gritrock. Having visited our troops just prior to Christmas—the Secretary of State visited more recently—I place on the record my enduring admiration for our armed forces personnel. They have been prepared to take risks in deploying to west Africa to fight this awful disease, not just to defend the Sierra Leoneans but us here at home.

On the defence review itself, there is an old saying about how to get to Dublin. In short, I would rather start an SDSR from where we are now than where we were in 2010. The chaos we inherited from Labour has gone and the budget is now back in balance. The hon. Member for North Durham (Mr Jones)—he and I have been sparring partners for some years—refused to commit the Labour party to spending more than 2% on defence beyond 2015-16, if it was elected. In that sense, he does not go beyond us. The giveaway was when he said that Labour would conduct a zero-based review. In essence, that means he cannot commit to anything. That is what a zero-based review means. He told the House on the one hand that he would not promise anything he could not deliver, but on the other hand he said that his party would conduct a zero-based review, in which it cannot really promise anything. It is important that the House understands the distinction between the positions held by the Opposition and the Government.

Our equipment programme—a substantial investment of some £163 billion over 10 years on equipment and support—will ensure that our armed forces retain a formidable range of cutting-edge capabilities and the ability to project power across the globe. This investment is not only securing the best possible military capability, it is also helping to secure UK jobs and growth. The UK defence industry indirectly employs more than 160,000 people, with a turnover of £22 billion.

[Mr Kevan Jones]

A zero-based budget looks at efficiencies and how to spend money better. Does the Minister agree with the Chancellor’s figures for 2016 to 2020, when something like £9 billion has been projected to meet the cuts—[Interruption.] The Whip has not been here, so he can stop chuntering from a sedentary position. Does the Minister agree with the Chancellor, yes or no?

[Mr Francois]

What I agree with is that we inherited a chaotic defence budget from the Labour party. That is what it bequeathed to us and that is what we have had to deal with from day one. I will come on to our position on the 2% commitment, which I believe is superior to the hon. Gentleman’s position.

Crucially, we are making full provision for the successor deterrent system. It is a shame that the hon. Member for Barrow and Furness (John Woodcock) is no longer in his place, as I wanted to tell him two things. I will be visiting Barrow very shortly. We will confirm the date with him in the usual way, but I want to see Barrow for myself. He also asked for a commitment, which I am happy to give him, to the seventh Astute submarine. We are determined that we will complete the seven boats in the Astute programme before transiting to a successor programme based on continuous-at-sea deterrence with four deterrent submarines.

We are also significantly increasing our investment in cyber-security, an issue raised by a number of hon. Members. I can assure the House that this does not relate only to defensive cyber. We need to ensure our armed forces are equipped with cutting-edge capabilities across all environments.

On the NATO summit and events in Ukraine, we have deplored Russian aggression in Ukraine from the outset. We urge all sides to take the necessary steps to implement the second Minsk agreement of 12 February, which provides a framework for stabilising the situation in eastern Ukraine. Russia must abide by its commitments at Minsk. This means making the separatists withdraw their heavy weapons, stopping continued separatist attacks so that an effective ceasefire can take hold, and allowing effective monitoring to take place. There have been some early encouraging signs over the past few days, with a lull in the level of fighting in the east and some heavy weapons relocated, but we have seen this pattern before. We will continue to monitor the situation and hope that it is not reversed. It is important that we look at actual deeds in this context and follow them closely.

Unity in the alliance is the best response to these challenges. We demonstrated that at the Wales summit, in particular with the readiness action plan, including the development of a very high readiness joint task force. On 5 February this year, at the NATO defence ministerial, the UK committed to lead the VJTF in 2017, as one of six framework nations, alongside France, Germany, Italy, Poland and Spain. The Wales summit saw the alliance commit to assurance measures for our eastern allies. Our contribution will be even greater in 2015 than last year, with over 4,000 UK personnel set to deploy on various exercises in eastern alliance territory. In particular, Exercise Dragon will be a divisional level exercise in Poland—something that I note the Chairman of the Select Committee called for in his speech. It is due to take place in September and the UK will contribute 1,000 troops, plus armoured vehicles. We will also participate in Baltic air policing. Four Typhoons will operate alongside Norwegian aircraft between May and August 2015, working to secure NATO’s airspace over our Baltic allies, demonstrating alliance solidarity in practice.

The Wales summit also committed NATO allies to reverse the decline in defence spending. The UK is one of the few NATO nations to have consistently spent 2% of GDP on defence. Importantly, we also exceed the target to invest more than 20% of our budget on equipment. We have the second biggest defence budget in NATO and the largest in the European Union. These are important points that we should not forget. In financial year 2015-16, we will maintain that 2% of spending. Following 2015-16, that will be subject to the next spending review, which is due to take place after the election, but it will not be a zero-based review, in the way that Labour argues.

[Mr Jones]

Will the Minister give way?

[Mr Francois]

No. The hon. Gentleman has already had his go and I have three minutes left.

The UK has committed to providing additional non-lethal support to the Ukrainian Government to help their forces deal with the pressures they are facing. Such support is not new, with the nature of the UK’s support remaining non-lethal. This forms part of a wider Government effort to support Ukraine and ensure a robust international response to Russia’s aggression. It is imperative that the United Kingdom stands by its NATO allies in delivering a unified message to Russia about its unacceptable behaviour and disregard for the international rules-based system.

Let me conclude by saying that it is important to remember that the Committee’s report was written last July, prior to the summit, but recent events in Ukraine have indeed been a wake-up call. I reiterate that in the light of this we must look at the SDSR and the NSS. We need to update both, and they must be complementary. The Committee recommended changes in the alliance, some of which have already been implemented. The Committee sought improvements on NATO’s rapid reaction force; the VJTF will contribute to this aim. The Committee wanted large-scale military exercises; Exercise Dragon this autumn will be a divisional sized exercise, consisting of 10,000 alliance personnel, 1,000 of whom will be British, who will be supported with a range of armoured vehicles. The Committee recommended that NATO address its vulnerability to asymmetric attack; work is in train that is seeing NATO significantly improve its resilience to hybrid warfare, not least in cyber, as I have already explained. Units such as the 77 Brigade, to which my hon. Friend the Member for Newbury (Richard Benyon) referred and which is based in his constituency, will also play an important part in that, ensuring that such threats can be covered off.

The Committee is quite right to draw the House’s attention to what has been happening in Ukraine. It is right that we watch these events closely and take nothing for granted. Defence is, and remains, the first duty of Government, so now is not the time to slacken. We must stay the course, implement the decisions from Wales and demonstrate our commitment to NATO. We must at all times remember the importance of solidarity in the NATO alliance. NATO has formed the bedrock of our security since 1949. It still does. We remain fully committed to our NATO allies, and everyone should understand that. NATO has helped to keep us safe and free. It has been committed to us, and we remain committed to it.

Question deferred until tomorrow at Seven o’clock (Standing Order No. 54).

Warm Home Discount Scheme (Northern Ireland)

Monday 2nd March 2015 Commons Chamber

Motion made, and Question proposed, That this House do now adjourn.—(Mel Stride.)

22:00

[Ms Margaret Ritchie (South Down) (SDLP)]

I was delighted to secure this very important debate on the extension of the warm home discount scheme to Northern Ireland. I am pleased that the Minister is in her place to respond. The rate of fuel poverty is higher in Northern Ireland than in any other part of the UK, representing 42% or 294,000 homes, with the figure rising to 62% for elderly people. I would like to outline the extreme toll that fuel poverty takes on people.

Only last week, I received an e-mail from the Contact a Family organisation. It told me that Ellen Johnston from Belfast, whose six-year-old son Cole has global developmental delay, low muscle tone, epilepsy and cannot speak, said:

“People don’t realise that it can cost so much more if you have a child with a disability or special needs. I used to work before Cole was born and tried to work from home but it was just too difficult to do this and deal with Cole’s needs and medical appointments at the same time.”

That serves to illustrate the cost and the burden on that poor lady of heating her home, particularly with a disabled child and particularly when she was relying on benefits and had no other source of income.

Many of us take a warm home for granted, but many people, particularly the elderly, do not have the comfort of a well-heated home. It is also worth noting that retired people are for obvious reasons at home much more of the time and therefore require the heating to be on for much longer periods than those still in work do. For them, heating their home becomes an enormous financial pressure, leading many to be left with the reality of living in extremely cold conditions. This is not just a matter of simply adjusting the thermostat or putting on a jumper, as a previous Energy Secretary suggested—it is often a matter of life and death.

Under the Government’s own criteria, an estimated 6 million households are living in fuel poverty, and this winter a reported 40,000 extra winter deaths occurred in the UK—a rise of 29% on the previous year. According to the Office for National Statistics, from the beginning of December until 16 January this year, there were 8,800 more deaths than the average of 25,000. The rate rocketed by 33% in the week up until 16 January, when there were almost 15,000 deaths as an extremely cold spell took hold. An additional 3,000 deaths are expected and by March 31, the end date for Department of Health winter death totals, numbers will have surpassed the flu-hit toll of 36,450 in 2008-09, making it the worst since the peak of 48,440 deaths in 1999-2000.

The figures for Northern Ireland are at least as grim, if not worse, with approximately 600 excess winter deaths recorded in 2013-14—up by about 20% from 2012. It is important to note that not all those deaths represent the “very elderly”, with approximately one in five under-75s and one in nine under-65s in the last year for which records were available in Northern Ireland.

Low interior temperatures also lead to a range of other medical conditions, from bronchitis and other respiratory diseases to heart problems, not to mention the extra psychological toll that they can take. The World Health Organisation recently reported on the extreme danger that cold and damp homes, which often have poor or shoddy insulation, can pose to people’s health by causing respiratory illnesses. One of my party’s councillors, Brian Heading, has taken a great lead on the issue, and is trying to raise awareness of it in councils in the UK and in Ireland. It puts enormous pressure on an already hard-pressed health service and on individual families.

[Lady Hermon (North Down) (Ind)]

Fuel poverty is a very serious issue in Northern Ireland. I should like to know why Northern Ireland is the only part of the United Kingdom to which the warm home discount scheme does not extend. Did the Westminster Government not pay for it, or was money allocated but not spent in the proper way by the Northern Ireland Executive?

[Ms Ritchie]

I may be able to explain that later in my speech, but suffice it to say that Northern Ireland is the only region to which the scheme does not extend and in which there are particular market conditions. Our climatic conditions are probably similar to those in Scotland, and we have similar levels of fuel poverty, but the war home discount scheme extends to Scotland and not to Northern Ireland.

I understand from Age Sector Platform that the scheme could be administered centrally by the United Kingdom, and that the costing could be executed by the utility companies. In fact, one of the utility companies that operate in Britain, SSE, also operates in Northern Ireland, through its agent Airtricity. I imagine that if the Minister approached the Northern Ireland Executive and, in particular, the Department of Enterprise, Trade and Investment, as well as the utility regulator and the other utility companies, a resolution might be found.

In Northern Ireland, the problem of cold and damp is exacerbated by the fact that people have no access to the warm home discount scheme. The scheme was introduced in April 2011 by regulations made under section 9 of the Energy Act 2010. It provides a £140 rebate on household energy bills for eligible groups, namely pensioners receiving guarantee credit, who are known as the core group, and other low-income households, who are known as the broader group. Some further payments were made on the basis of other criteria.

More than 2 million low-income and vulnerable households in England, Scotland and Wales have been helped each year, and total payments were expected to reach £1.1 billion by March 2015. The Department for Work and Pensions estimates that approximately four out of every five households claim this entitlement. While it is obviously desirable to maximise the figure and promote better awareness of the scheme here, it is worth repeating yet again that no one in Northern Ireland has access to it. The hon. Member for North Down (Lady Hermon) made that point a few moments ago.

The scheme is administered by Ofgem. The Department for Work and Pensions has a monitoring role, and the administration costs are carried by the UK Government. Could the arrangement not simply be transferred to Northern Ireland, with the administration being carried out centrally here in Britain? It is financed by levying around £11 per annum on consumers, and Age Sector Platform has estimated that Northern Ireland could be covered by the scheme with the addition of just £1 per customer per year. This scheme was designed specifically, in the words of the Department of Energy and Climate Change,

“to reduce fuel poverty in the UK”,

with no mention of excluding Northern Ireland, and indeed has been set up with a mechanism to ensure that no supplier is left footing a disproportionate burden owing to the uneven spread of fuel poverty across the UK. Surely the north of Ireland should not be excluded from this.

While the Minister in response to written questions has maintained that fuel poverty is a fully devolved matter, in DECC’S own fuel poverty statistics guide it is described only as a partially devolved matter and it is acknowledged that devolved Administrations do not have the capacity to

“affect certain aspects of fuel poverty policies”,

such as incomes and market conditions. Fellow Members representing Northern Ireland constituencies who are present tonight will recall that we met Age Sector Platform in this building on 4 November and it referred to that specific point. We were under the illusion—including me, a former Minister for Social Development—that it was a totally devolved matter, but that document from DECC clearly shows that it is only partially devolved and therefore the UK Government centrally do have a responsibility in this matter. It is on that point that I and other Members representing Northern Ireland constituencies are seeking answers.

[Mr Nigel Dodds (Belfast North) (DUP)]

I congratulate the hon. Lady on securing this important debate. I agree entirely with what she is saying and she is right to highlight these matters to the United Kingdom Government. I ask that she and the House be assured that there is consensus among all the parties in Northern Ireland and the Members here on this issue, and we will continue to work together both here and at home with our Executive colleagues to try to bring about an answer and a solution for the people affected by fuel poverty in Northern Ireland.

[Ms Ritchie]

I thank the right hon. Gentleman for that helpful intervention. He is absolutely right: there is cross-party consensus on this issue in Northern Ireland and we want to continue working during this debate, and particularly after it, to ensure that a solution can be found that mitigates the impact of fuel poverty on some of the most hard-to-reach households in both urban and rural communities.

There is consensus on this issue across the parties in Northern Ireland. That point was reiterated at the meeting with Age Sector Platform on 4 November in this House. It intends to hold a cross-party Parliament meeting for older people shortly, and before the election; I have just got word of that today.

Age Sector Platform has also submitted a strong response to November’s consultation, advocating our inclusion in the scheme. It has also suggested that as Power NI, one of the utility companies in Northern Ireland, meets the threshold for mandatory involvement in the scheme in the UK, with 250,000 domestic customers, it should be included, along with Airtricity, which is a subsidiary of SSE, which is already involved in Britain. I would be most grateful for an updated assessment of this situation from the Minister.

I am aware that the Minister of State’s response to written questions on this issue has been that fuel poverty is a devolved matter, and obviously I am aware that Ireland has a separate energy market with different providers. However, as I have said, there has been an acknowledgment and awareness from the Department that we face the same problems with fuel poverty, but do not have the same toolset to deal with them. Surely there is a role for the UK Government in providing, or at least enabling or facilitating, the scheme in Northern Ireland.

The Minister’s answers on this question have so far been fairly blunt, but will she commit this evening to taking a more positive and perhaps more nuanced view of the issue? Will she work with the Northern Ireland Executive whenever possible to explore the options to extend the scheme, or a comparable variant of it, to Northern Ireland? I am calling on her to do the right thing and to work with the Executive at Stormont to protect the elderly and disabled members of our population and some of the most vulnerable families in hard-to-reach communities.

We are also looking for an extension beyond April 2015 of the landlords’ energy-saving allowance, which would help to further mitigate fuel poverty in the private rented sector. I am calling on the Minister to do the right thing this evening. If the warm home discount scheme is extended, pensioners and other elderly people in Northern Ireland will be spared freezing in their homes next winter.

22:16

[The Parliamentary Under-Secretary of State for Energy and Climate Change (Amber Rudd)]

I congratulate the hon. Member for South Down (Ms Ritchie) on securing the debate on extending the warm home discount scheme to Northern Ireland. Fuel poverty remains a huge challenge, as she rightly says, and the coalition is committed to tackling the problem and to helping the people affected, especially those on low incomes and in vulnerable households.

To help us to meet the challenge of fuel poverty head on, the Government have introduced a new, more accurate “low income, high cost” measure of fuel poverty in England. This enables us to deliver effective policies that can cut bills and increase comfort for those on low incomes living in the coldest homes. We have a range of policies in place, including the warm home discount, that address the contributing factors of fuel poverty through either increasing income or reducing energy bills.

I want to provide some context for the warm home discount scheme and tell the House how it operates in Great Britain. The powers for the warm home discount scheme are set out in primary legislation—the Energy Act 2010—and it is delivered by suppliers within Great Britain. Introduced in 2011 through secondary legislation, the warm home discount scheme requires electricity suppliers with more than 250,000 domestic customer accounts to provide financial support in respect of energy costs to their vulnerable customers. This winter, the customers eligible for that financial support received a £140 rebate on their electricity bill.

Since we launched the scheme, around 2 million households in or at risk of living in fuel poverty across Great Britain have benefited from lower energy bills each year. As a result of the success of the warm home discount, this Government have extended support to 2015-16, with a spending target of £320 million. This is in addition to the £1.1 billion that has been spent over the first four years of the scheme and will continue to support the people most in need.

Fuel poverty in Northern Ireland is devolved to the Northern Ireland Executive, who decide their own fuel poverty objectives and policies. However, in looking at the feasibility of extending the warm home discount scheme to Northern Ireland, we can see that a number of factors would affect that arrangement. As I said, the powers for the warm home discount scheme were set out in primary legislation in the Energy Act 2010. However, the powers extend only to Great Britain, so any extension of the scheme to Northern Ireland would require a change in primary legislation.

The energy market in Northern Ireland is different from the one that operates in Great Britain. There is also a difference in the nature and number of customers in fuel poverty. Northern Ireland operates in an all-island energy market that is separate from that of Great Britain. It is at a different stage from the GB market in terms of energy market regulation and competition.

The warm home discount scheme applies only to the largest suppliers, based on their domestic market share across Great Britain. The same rules apply in all regions so as not to create market distortions. In Northern Ireland, only the largest supplier would meet the current participation threshold for the scheme. That would mean customers of smaller suppliers would be ineligible, which could lead to a distortion of the single energy market.

I also want to highlight the importance of maintaining a balance between helping those in fuel poverty and ensuring that energy costs are kept as low as possible for everybody. The warm home discount scheme is funded by energy suppliers, which we expect to pass the costs of the scheme on to customer bills. The question from the hon. Member for North Down (Lady Hermon) was about the source of funds, and the simple answer is that the funds are only collected from bills in Great Britain—they are not currently collected from the Bills in Northern Ireland, which is unique in the UK in that respect.

Replicating the GB scheme in Northern Ireland could be done but would pose particular problems. Given the high proportion of households in fuel poverty in Northern Ireland, making them all eligible would have a high overall cost. For example, if Northern Ireland were to replicate the impact of the warm home discount scheme in Great Britain, for one in 13 households benefiting we could expect an increase in energy tariffs of 2%. However, if coverage of the scheme extended to include all fuel poor customers in Northern Ireland, the costs of the scheme would add almost £59—a 9.8% increase—to each household electricity bill.

A different means of funding such a scheme may be needed for Northern Ireland. Northern Ireland already has a number of schemes in place that provide support to the fuel poor, including the sustainable energy programme, the warm homes and affordable warmth schemes, and the boiler replacement scheme. Those are in addition to the availability of cold weather payments and winter fuel payments. Also, the recent downward pressure on oil prices will come as welcome relief to the many customers in Northern Ireland using oil for heating purposes

I understand that Power NI, the main supplier in Northern Ireland, has announced a tariff reduction of 9.2% to take effect from 1 April 2015. This will be a two-year tariff and is estimated to reduce a typical domestic consumer bill by approximately £50 per year. Alongside the downward pressure on heating oil and gas prices, it should result in a reduction in the extent and severity of fuel poverty.

The hon. Member for South Down raised the issue of covering administrative costs. For her information, the Department for Work and Pensions administrative costs cover only a small proportion of the cost of administering the scheme. Most costs, including the administrative costs, are borne by the suppliers. My officials in the Department of Energy and Climate Change regularly meet Northern Ireland Executive officials to discuss fuel poverty issues. However, as fuel poverty is devolved to the Northern Ireland Executive, they decide their own fuel poverty objectives and policies.

Fuel Poverty remains a huge challenge in both Great Britain and Northern Ireland and needs to be tackled. However, the differences between our energy markets and the way we measure fuel poverty mean that we need to consider different policies to best meet the needs of those we are trying to reach.

[Ms Ritchie]

The Minister has clearly stated that her officials meet Northern Ireland Executive officials to discuss fuel poverty and fuel poverty objectives. What specific issues have been discussed in the recent past between her officials and officials in the Department for Social Development in Northern Ireland about the mitigation of fuel poverty?

[Amber Rudd]

I thank the hon. Lady for that question. Obviously, the key point that is relevant to what we are talking about is how we could advise or assist in some equivalent measure, which is exactly what she has raised with us today. In preparation for this debate, we had further discussions. The hon. Lady talked earlier about trying to keep the dialogue open, and I wish to reassure her that we are always keen to work with the Department of Enterprise, Trade and Investment in Northern Ireland and to share with it all that we have learned about trying to administer this scheme in the best way to reach the constituents who, as she has clearly set out, are so vulnerable to high energy costs: the vulnerable, the disabled and the pensioners, who often do not go out.

Although I do not have the answers here today about how the scheme could be extended to Northern Ireland, because, as I have said, it is a devolved matter and has separate payments, I would like to reassure the hon. Lady that we are always keen to work with our counterparts in Northern Ireland and we will be keen to continue to do that. I hope I have shown that we will work with them wherever we can to make sure that fuel poverty is eradicated in Great Britain and Northern Ireland by any means possible. I commend her for raising this issue today.

Question put and agreed to.

22:24

House adjourned.