The Secretary of State for Foreign and Commonwealth Affairs (Boris Johnson)
I know that the whole House will join me in sending our warmest congratulations to Prince Harry of Wales and Meghan Markle on the announcement of a union that will make the royal family even more global, and Britain more global than ever before.
I am delighted to open the Budget debate. The driving purpose of this Government is to strengthen Britain’s global role, to raise our level of national ambition and to prepare for the opportunities before us when this country regains the power to decide our trade policy and strike our own trade deals. As that moment approaches, the House should focus on the salient fact that 80% of the global economy and 90% of world economic growth lies outside of the European Union. The countries of Asia and the middle east have been increasing their relative weight in the global economy for decades, so that the great arteries of world trade are thousands of miles from our continent. Every day, fleets of supertankers carrying 17 million barrels of oil ply the strait of Hormuz, and a quarter of the world’s maritime trade passes through the strait of Malacca in south-east Asia.
Boris Johnson
As I am sure the hon. Gentleman is about to remind us, we are going to create a new, deep and special partnership with our friends and partners in the EU, but Britain is uniquely placed to thrive and prosper in a globalised economy.
Mike Gapes
Given that even the Foreign Secretary does not have the power to change geography, what is he going to do to relocate the United Kingdom from Europe—being linked to the European land mass—to south-east Asia or the middle of the Pacific?
Boris Johnson
I think that most hon. Members who are listening to the exordium of my speech will appreciate that that is an entirely ludicrous question, since I pointed out, just as the hon. Gentleman rose to his feet, that we are going to make a new, deep and special partnership with our friends in the European Union in addition to the exciting growth opportunities that await us around the world. By history and by instinct, Britain is an outward-looking and free-trading nation, and all we need to flourish is the determination to grasp the opportunities around us. This Budget is designed to equip a global Britain for that challenge.
Tim Loughton (East Worthing and Shoreham) (Con)
In terms of grasping opportunities, does my right hon. Friend acknowledge that one in 12 people on this planet is an Indian under the age of 28? Does he agree that that is where the future lies, that that is where the opportunities for this country lie and that we can forge a trade relationship with those people only outside the customs union?
Boris Johnson
My hon. Friend is absolutely right, and I might point out to him as well that India is just one of 52 Commonwealth nations that together comprise 2.4 billion people and some of the fastest-growing economies in the world, with whom we can now do free trade deals, as he rightly says, outside the customs union. We will be strengthened in that endeavour by being able to build on the success—
Tom Brake (Carshalton and Wallington) (LD)
Will the Foreign Secretary give way?
Boris Johnson
I will give way in a moment, as I am sure the right hon. Gentleman will want to hear these points.
We will be able to build on the success of an economy that has grown for 19 quarters in a row, contrary to what the right hon. Gentleman prophesied, with unemployment that has fallen to its lowest level for 42 years and with 3 million new jobs since 2010—one of the best records in the whole of Europe—and we are forecast to create another 600,000 by 2020.
This Budget will take forward our national success by helping Britain to compete in the industries of the future —robotics, artificial intelligence and self-driving cars. My right hon. Friend the Chancellor is overseeing the biggest increase in science and innovation spending for 40 years, investing another £2.3 billion to keep Britain at the forefront of the technological revolution.
Boris Johnson
With pleasure. As the right hon. Gentleman knows full well, when we leave the European Union, there will be at least £350 million a week, of which we will take back control. As he knows full well, substantial sums from that funding will be available for use in our national health service. If he seriously believes that money should be squandered on ill-audited projects around Europe, he is not expressing the will of the British people.
Several hon. Members rose—
Boris Johnson
If I may, I will make a little more progress.
The right hon. Gentleman will be pleased to know that a new tech business is being created in Britain every hour, and we are dedicating another £500 million to initiatives ranging from 5G mobile communications to full fibre broadband networks.
This Budget presses on with the most ambitious renewal of our national infrastructure in living memory, including the biggest programme of improvements to our road network since the 1970s and the biggest expansion of our railways since Victorian times, with Crossrail comprising the largest construction project in Europe, to say nothing of High Speed 2, the second biggest.
But we cannot prosper at home unless Britain plays our indispensable role in maintaining the stability and security of the world. It is the right thing to do, but it also means that global Britain is of direct benefit to all our constituents. Millions of British jobs depend on the benign and transformative power of free trade. Last year, we sold goods and services worth almost £100 billion to the United States. Our exports rely, therefore, on other countries being rich and peaceful enough to buy our British products.
When the Department for International Development invests £4 billion in development in Africa, we do this, and we are proud to do this, because it is right in itself and also because 70% of Africans are under the age of 25, the population of their continent is set to double to 2.4 billion by 2050, and these are the great markets of the future.
Dr Rosena Allin-Khan (Tooting) (Lab)
Last week I returned from the border of Bangladesh and Myanmar, where I heard of unspeakable crimes being committed against the Rohingya people. At this crucial time, the Foreign and Commonwealth Office has had its budget slashed, and I am worried about the effect this will have on our ability to prevent future crimes against humanity. I would like to share my findings with the Secretary of State, so will he kindly agree to meet me to discuss the evidence of genocide in Myanmar?
Boris Johnson
I must, I am afraid, correct the hon. Lady. The budget of the Foreign Office is rising from £1.2 billion to £1.24 billion, and including our ODA—official development assistance—spending, it is going to be well over £2 billion every year. There has been no cut in Foreign Office spending whatever; I am afraid that that is absolutely untrue. We are seeing our spending increased rather than the reverse. I have had the opportunity to discuss the crisis in Rakhine and the plight of the Rohingya not just with my right hon. Friend the Secretary of State for International Development, who was there at the weekend, but with many hon. Friends across the House.
Boris Johnson
May I invite the hon. Lady to write to me about the matter and I will certainly do my best to give her a full answer? [Interruption.] I am afraid that, as she can imagine, my diary is very heavily congested. [Interruption.] She importunes me for a meeting. It would be wrong of me—[Interruption.]
Madam Deputy Speaker (Mrs Eleanor Laing)
Order. Hon. Members must not shout at the Foreign Secretary. He has given an answer to a question. People might not like the answer, but he has given an answer, as it is his duty to do, and it does not work to shout at him.
Boris Johnson
It pains me to give any kind of negative answer to the hon. Lady, but I must tell her that my diary is very busy. I have had many meetings on the crisis in Rakhine and the Rohingya, and I am not at this stage able to consecrate the time that she wants from me. May I invite her to write to me and I will do my best to help her?
The reason the UK is one of the biggest donors to Bangladesh and to the solution of the crisis in Rakhine is that Burma, one day, will have a great future and we—our country—will be part of that future. When our soldiers and development experts are deployed in northern Nigeria—I have seen for myself the great work that they do—to help defeat the barbaric terrorists of Boko Haram, they are also helping to bring stability to a country rich in natural resources that will, by the middle of the century, have more people than the United States. When we strive to get girls into school in Pakistan, to unite the world behind Ghassan Salamé’s plan for a peaceful Libya, to improve the resilience of Bangladesh to flooding, to help Kenya to beat corruption, or to help tackle the problems of Somalia—all areas in which the UK, global Britain, is in the lead—we are doing the right thing for the world, but we are also investing in countries with huge potential, filled with the consumers of the future.
Our exports rely on shipping lanes and clear international rules enforced with rigour and fairness. We will not be so foolhardy as the Leader of the Opposition, who apparently believes that all this can be taken for granted and left to the good will of foreign powers.
Ms Nusrat Ghani (Wealden) (Con)
I am concerned that the Foreign Secretary might be moving on from the aid budget without mentioning a very good project that we are involved in—a finance initiative for women entrepreneurs that is helping women in the developing world to set up businesses, not only providing security and stability but enabling them in future to become trading partners with us.
Boris Johnson
I am delighted that my hon. Friend has made that valuable point. The emphasis that she places on women’s commercial potential and ability to drive the economy is absolutely right, and it is one of the reasons why all UK overseas effort is focused, above all, on the education of women and girls. I believe that that is the universal spanner that unlocks many of our problems.
We believe that the international rules-based system, on which our safety and prosperity depends, must be defended and upheld. To that end, my right hon. Friend the Chancellor has ensured that Britain has the biggest defence and overseas aid budgets in Europe. The Foreign Office, the Ministry of Defence, DFID and our intelligence services will have a combined budget of £51.2 billion this year, allowing Britain to devote more resources than any other European country to safeguarding our interests and projecting our influence worldwide.
Today, the UK accounts for 13% of the EU’s population but 16% of its GDP, 21% of its defence spending and 25% of its spending on development aid. None of that will be lost to our European friends after we leave the EU, because, as the Prime Minister has said, our commitment to the defence and security of Europe was unconditional and immovable long before we joined the EU, and it will remain equally resolute after we leave.
Wayne David (Caerphilly) (Lab)
Does the Foreign Secretary not recognise that there is a £20 billion to £30 billion black hole in the Ministry of Defence budget? What is the Budget doing about that?
Boris Johnson
As the hon. Gentleman knows full well, we are one of the few countries in Europe, or indeed in the world, committed to spending 2% of our GDP on defence. We are increasing our defence spending year on year, as the Chancellor confirmed in this Budget.
We are demonstrating our commitment by deeds as well as words. At this moment, Britain is providing almost a quarter of the troops in NATO’s “enhanced forward presence” in the Baltic states and Poland. I visited them in September, and I suggest that the hon. Gentleman does likewise. He will see a battlegroup of 800 personnel in Estonia, and it will make him proud. It was extraordinary to see the gratitude of the Government and the people of Estonia, because they see what Conservative Members understand: the people of Tallinn, Riga, Warsaw and Vilnius enjoy just as much protection from NATO as the residents of Berlin, Paris or London. It is right that they do, and they have an equal right to live in peace and freedom.
I say again that not only is a global Britain in our national interest, but we have an obligation to promote the general good. It is an astonishing fact that, when we include our overseas territories, this country is responsible —in addition to all the other aspects of global Britain that I have described—for 2.6 million square miles of ocean. That area is more than twice the size of India and 30 times bigger than the UK. Britain is responsible for a greater expanse of the world’s oceans than are Brazil, Canada or even China. It is possible that some hon. Members are unaware that one third of the world’s emperor penguins are British.
Sir Edward Leigh (Gainsborough) (Con)
As we are responsible for so much of the world’s oceans, is it really a good idea for the Royal Navy to have only 19 major warships?
Boris Johnson
I refer my hon. Friend to the answer I gave a moment or two ago in respect of the colossal investments that the Government and the country are making in our defence and armed services, of all kinds. We are spending 2.2% of GDP on defence, and very few other countries can match that record. I do not know whether my hon. Friend has noticed, but this country has only recently commissioned two of the biggest warships—each of them is longer than the Palace of Westminster—that this country has ever produced, which is a demonstration of our commitment to the Royal Navy.
Several hon. Members rose—
Boris Johnson
I will, if I may, complete my point about the penguins. The penguins have their British status by virtue of their residence in the British Antarctic Territory. We have the fifth biggest maritime estate in the world, giving us a special role in conserving the biodiversity of our seas.
Boris Johnson
I think I know what my hon. Friend is going to say, and I will happily give way to him on this point.
James Gray
My right hon. Friend is making some extremely important points, particularly about the Antarctic and the Southern ocean. Will he commit the Government to paying particular attention to marine protected areas around the Antarctic coast, which I think he strongly espouses, as do close relations of his?
Boris Johnson
My hon. Friend brilliantly anticipates the point I was going to make. As he rightly guesses, the Government’s policy is to encircle or, I should say, to engirdle the planet with a blue belt of marine protected areas embracing 1.5 million square miles of ocean by 2020.
Boris Johnson
Thank you.
The House will know that the careless disposal of plastic waste poses one of the gravest threats to marine life. That potentially lethal material, which is carried by the currents, is choking seabirds and imperilling whales. In 2015, the Government introduced a charge on plastic carrier bags, cutting their use in the UK by 80%, and avoiding the disposal of 9 billion carrier bags, many of which might otherwise have ended up in the oceans. From 1 January, we will ban the production of plastic microbeads, the strongest legal measure of its kind anywhere in the world. This Budget goes further by asking for evidence on how the Government could take more such steps, through new taxes and charges, to combat the menace of marine plastic pollution. That is because Britain’s ambitions must be global, as befits our responsibilities, history and tradition.
A global Britain is a safer Britain and a more prosperous Britain. It is profoundly in our interests that we should play the role of helping to guarantee the safety of countries far from our shores—
Several hon. Members rose—
Boris Johnson
With great respect, I will not give way.
As well as taking such actions, we should invest in the development of nations that may be poor today, but will be thriving markets for British exports. I venture to say not just that such an outcome will be good for those countries or for our country, but that the fruits of such investment by a global Britain will be good for the world. I commend this Budget to the House.
The Economic Secretary to the Treasury (Stephen Barclay)
I thank my right hon. Friend the Foreign Secretary for opening the debate. He spoke with customary élan about how the Budget will ensure that Britain capitalises on the industries of the future—robotics, artificial intelligence and self-driving cars. He was right to highlight that a new tech business is created every hour in Britain, powered by a workforce who have seen 3 million more jobs created since 2010 and unemployment at its lowest level for 42 years. He set out our ambition to be global and outward looking, to protect maritime and environmental standards, and to use our defence, overseas aid and intelligence capacity to project influence around the world.
The debate has benefited from a wide range of contributions. The Chair of the Foreign Affairs Committee, my hon. Friend the Member for Tonbridge and Malling (Tom Tugendhat), spoke about the effectiveness of soft power and described the Foreign Office and DFID working to project that power in order to promote international rules.
The hon. Member for Glenrothes (Peter Grant) gave the powerful case study of Mary’s Meals, which shows not just Scotland’s reach around the world, but that of the United Kingdom. I think that his pride in the good work done by that charity was shared on both sides of the House.
My hon. Friend the Member for East Worthing and Shoreham (Tim Loughton) highlighted how much the Opposition would increase debt. He mentioned the specific measures in the Budget to help business, such as the staircase tax, as well as the importance of building homes, which is a key measure in the Budget, including the abolition of stamp duty for the vast majority of first-time buyers.
The hon. Member for Tooting (Dr Allin-Khan) spoke about her recent experiences in Myanmar in a way that I think touched all Members of the House. She spoke of the tragedy she saw unfolding there and explained the important treatment she has been able to offer those fleeing persecution.
My hon. Friend the Member for Mid Worcestershire (Nigel Huddleston) correctly highlighted that 4 million people have been taken out of tax entirely by this Government through the increase in the personal allowance.
The hon. Member for Blyth Valley (Mr Campbell), who is no longer in his place, spoke in a way that I think many Government Members welcomed, highlighting the importance of honouring the vote to leave the European Union, as his constituents voted to do. He also talked about the importance of housing, which is at the centre of the Budget.
My right hon. Friend the Member for East Devon (Sir Hugo Swire) spoke about the importance of soft power, as well as hard power, and the value of the Commonwealth.
The hon. Member for Stockton North (Alex Cunningham) said that his Budget speech was the seventh he had made, and I fear that it was no more positive than the previous six. That characterises the difference between the optimism on the Government Benches and the pessimism on the Opposition side.
My hon. Friend the Member for Elmet and Rothwell (Alec Shelbrooke) highlighted the importance of High Speed 2 and connectivity to Leeds. He also recognised the contribution of the hon. Member for Tooting.
The hon. Member for Stroud (Dr Drew) accepted the £44 billion commitment on housing but failed to recognise the £1.3 billion put into school funding earlier this year.
My hon. Friend the Member for Poole (Sir Robert Syms) reminded the House—should we need reminding—that the previous Labour Government left a note stating, “There is no money left,” because Labour always goes too far. His optimism reflects the optimism of this Government.
The right hon. Member for Delyn (David Hanson) highlighted how his constituents make things and called for a transition, so I am sure that he valued the commitment that the Prime Minister gave in her Florence speech.
My hon. Friend the Member for Gainsborough (Sir Edward Leigh) highlighted that debt interest remains a bigger expense than the defence and policing budgets combined and how, under the previous Labour Government, £300,000 was added to our debt Bill every minute.
The hon. Member for City of Durham (Dr Blackman-Woods) mentioned the TUC but omitted any mention of the extra funding for Unionlearn, which I am sure she welcomes.
My hon. Friend the Member for Chippenham (Michelle Donelan) highlighted the 19 consecutive quarters of growth and the increase in employment, and my hon. Friend the Member for Hornchurch and Upminster (Julia Lopez) recognised the value of strategic investments in infrastructure unlocking much needed housing.
My hon. Friend the Member for Gordon (Colin Clark) flagged up how it was a good budget for Scotland, reflecting on the convincing representation of Scottish colleagues—we have certainly come to see that in the Treasury. My hon. Friend the Member for Richmond (Yorks) (Rishi Sunak) highlighted how debt as a percentage of GDP is set to fall, as the Government stick to their fiscal target.
The hon. Member for Kensington (Emma Dent Coad) spoke of the tragedy of Grenfell, but did not mention the £28 million in the Budget for additional community support to victims—set out on page 63 of the Red Book, if she missed it.
My hon. Friend the Member for Erewash (Maggie Throup) highlighted the funding for electric vehicles and the scope of the UK to be a leader in that new technology. My hon. Friend the Member for Rugby (Mark Pawsey) highlighted the absence of any credible alternative Budget from the Opposition.
The hon. Member for Ipswich (Sandy Martin) valued the stimulus of investment in infrastructure and gave credit to the Government for the £1.5 billion upgrade of the A14, but seemed to omit the Government’s commitment to upgrading Ely junction. My hon. Friend the Member for Ochil and South Perthshire (Luke Graham) flagged up the increase in the living wage and the Government’s lowering of corporation tax, and how that is boosting business.
The hon. Member for Edinburgh East (Tommy Sheppard) spoke about the importance of migration. The Government recognise the benefits of migration; we just want to control it, rather than leave it uncontrolled.
My hon. Friend the Member for Stoke-on-Trent South (Jack Brereton) highlighted the importance of investing in skills and the value of open markets for quality design, technology and ceramics. The hon. Member for Penistone and Stocksbridge (Angela Smith) spoke of the importance of productivity. My hon. Friend the Member for Middlesbrough South and East Cleveland (Mr Clarke) flagged the exciting regeneration projects in his constituency and his optimism in the Budget.
My hon. Friend the Member for East Renfrewshire (Paul Masterton) highlighted the difference that Scottish Conservative MPs are making in the Government. My hon. Friend the Member for Aberdeen South (Ross Thomson) highlighted the benefits to the oil and gas industry from measures in the Budget. My hon. Friend the Member for West Aberdeenshire and Kincardine (Andrew Bowie) spoke about the force for good provided by the Royal Navy and the value of cultural exports in projecting soft power.
The right hon. Member for Carshalton and Wallington (Tom Brake) spoke of a day of reckoning. Most of us on the Conservative Benches thought that was the 2015 general election, when the Liberal Democrats did get that day of reckoning.
My hon. Friend the Member for Witney (Robert Courts) talked about the impact of patient capital and how that will be a stimulus for growth. The hon. Member for Leigh (Jo Platt) appeared to think her party had won the general election. I am sorry to break the news to her, which I am sure will come as a shock.
This Budget builds on the heavy lifting the Government have done to bring down the deficit by three-quarters since 2010 through delivering 19 consecutive quarters of growth. It ensures we remain on track to meet our fiscal targets, while continuing to invest in our core public services. It expands the national productivity investment fund by a further £8 billion, meaning that in real terms the Government will spend £25 billion a year more on infrastructure than the average spending under the last Labour Government.
This is a balanced Budget, in contrast to a Labour Opposition who always go too far. They would borrow £500 billion and burden the country with huge debt interest payments. This is a Budget that ensures Britain is fit for the future.
Ordered, That the debate be now adjourned.—(Mike Freer.)
Debate to be resumed tomorrow.