Budget Resolutions

Debate between Desmond Swayne and Michael Fallon

Thursday 23rd November 2017 Commons Chamber

[Sir Michael Fallon (Sevenoaks) (Con)]

I hope to find an early opportunity to speak out on what is the right level of defence spending to meet the threats that our country faces, and to do so more freely than the constraints of government allowed, but today I want to focus on the Budget before us. It is the first Budget of this Brexit Parliament, and I warmly welcome it.

It is extraordinary that we still have no answers from Labour Front Benchers on the amount of additional borrowing they would undergo, or indeed, 24 hours later, on the amount of additional interest that they are prepared to rack up. Those are legitimate questions. This is not trite journalism. A shadow Chancellor should be able to tell the House exactly how much more he would be spending and borrowing.

I particularly welcome the additional money for the national health service and the measures for long-term investment in our infrastructure, but that long-term investment will need to be accompanied by other and deeper structural reforms. How can we be encouraged to save again rather than to spend on credit? How can we reverse some of the more pernicious side-effects of quantitative easing, which seem to benefit those who already hold significant assets?

The fall in unemployment has probably been the greatest single achievement since 2010. Unemployment has fallen not because of one single policy, but because of the cumulative reductions in taxation and regulation that have taken place over the last seven years, almost every one of which was opposed by Labour Members. The 5 million small businesses and nearly 5 million self-employed people are the real wealth creators. They are the people who work every hour that God sends, and who invest—and risk—their own money to create, in turn, the tax revenue that funds our public services. I hope that, over the current Parliament, we will continue to cut the form-filling and let them keep more of what they earn.

There are four areas in which I hope we can make even more progress. The first is low-paid work. No Government have done more for the low-paid than this Government, who have introduced the national living wage and taken so many more people out of tax altogether, but we need to keep going. Is it logical to go on raising the personal allowance but not the national insurance threshold? A full-time worker on the national living wage pays almost as much in national insurance as in income tax. Those who are working part-time—for example, 25 hours a week—and earning between £8,000 and £11,000 a year miss out as we raise the thresholds. I hope that Ministers will look at that again.

Secondly, I particularly welcome the steps to tax the global digital companies more effectively.

[Sir Desmond Swayne (New Forest West) (Con)]

Will my right hon. Friend acknowledge the leadership of the Government of which he was a part in driving that particular agenda internationally?

[Sir Michael Fallon]

I certainly recognise that, and it is important for these matters to be approached internationally.

Our constituents do, of course, benefit from the greater convenience and efficiency that digital retailers provide, but it cannot be right for our high streets, small shops and local businesses to bear all the pain of local rates while giants such as Amazon pay rates on a handful of warehouses. Their staff, too—Amazon staff, Google staff and Facebook staff—need well-funded schools, good local services and a proper NHS. It is right that they should pay their proper share of local and national taxes, and I applaud the steps that the Chancellor is taking down that path. One nation should mean one economy, for large and small businesses alike.

Thirdly, if we want to be one economy, more of our people should have a stake in it. In the year when Margaret Thatcher left office, 11 million adults in our country held shares. Today, although the population is significantly larger, only 8 million do so: a quarter fewer. When I privatised Royal Mail, I offered free shares to each of its 150,000 employees. Despite union advice—or possibly because of union advice—99% of the employees took up the offer. We deliberately skewed it towards small investors, and, as a result, 20% of Royal Mail is now owned by its staff and by small investors.

That is what we should be doing with all our remaining shareholdings, including the banks and the new social enterprises, and we should go further. Employee-owned companies are more productive and more profitable. Is not higher productivity the golden fleece for which Ministers keep searching? We need not just one John Lewis Partnership, but 1,000 John Lewis Partnerships across our economy. Existing schemes such as Sharesave and share incentive plans are not increasing the number of share ownership companies.

Counter-Daesh Update

Debate between Desmond Swayne and Michael Fallon

Thursday 13th July 2017 Commons Chamber

[Sir Michael Fallon]

I am grateful to the hon. Gentleman for the tribute he has paid to our armed forces. It is worth reminding the House that the Scottish nationalists voted against military action in both Iraq and Syria. It is all very well to say that they now welcome the fact that Daesh has been defeated in Iraq, but how much longer would Daesh have continued to behead people, to shoot people and to throw gays off buildings without air power, including British air power, and without the involvement of 68 countries around the world, but not the support of the Scottish nationalists? He should reflect on that.

We work with Airwars when it has allegations and suspects that there might have been British aircraft in the air at the time in question. We look at that information and investigate it. So far we have not found any evidence of civilian casualties being caused by a British strike, but we continue to work with Airwars, and if it has fresh evidence it should put it to us and we will investigate it. As I indicated, we also carry out what is called a battle damage assessment after any strike to see exactly what effect it has had and whether there is any risk that there may have been casualties.

The hon. Gentleman is right to point to the increase in civilian casualties in the final weeks of the battle in west Mosul. It is a highly compact and densely populated city, and Daesh pushed civilians into buildings, held them hostage and shot them if they tried to escape. This was intense urban warfare of a type that we have not been involved in since probably the second world war—a very complex military operation. However, it would not have been easier if it had been extended and we had let it drift on for months. The job had to be done, and I pay tribute to those involved in it, including our pilots for their skill and precision alongside the rest of the coalition.

Finally, the hon. Gentleman asked about Syria, as he did on Monday. He has also written to me about it—I have in fact replied to him; I signed the letter yesterday, but he may not have had it yet. It certainly gives clarity on the point that he raised with me.

[Sir Desmond Swayne (New Forest West) (Con)]

Is the expectation of sufficient reform in Iraq realistic?

[Sir Michael Fallon]

Yes, indeed. The Abadi Government are representative of all parts of Iraq. Abadi himself is a Shi’a; the President of Iraq, whom I met, is a Kurd; and my opposite number, the Defence Minister, is a Sunni. They are a genuinely representative Government, but they have work to do to provide reassurance, particularly to the Sunni populations and tribes of Nineveh and Anbar provinces in the west, that they too have a stake in modern Iraq and must feel part of it, and that they will be protected from any kind of Shi’a aggression such as they have suffered from in the past. The Government are representative and have lasted longer than some critics originally suggested they would, but they now have a huge amount of work to do to stabilise the areas that have been liberated and promote genuine political reconciliation.

Oral Answers to Questions

Debate between Desmond Swayne and Michael Fallon

Monday 10th July 2017 Commons Chamber

[Sir Michael Fallon]

We are one of the best trainers in the world, and our armed forces training is highly respected the world over. Other countries are constantly telling me that they want more places at Cranwell, Sandhurst and Dartmouth; they also want our armed forces to go out and train, as we are doing in Ukraine and Nigeria; and we have the largest apprenticeship programme in the country.

[Sir Desmond Swayne (New Forest West) (Con)]

12. What progress is being made on implementing the Dreadnought submarine programme.