Oral Answers to Questions

Liam Byrne Excerpts

Tuesday 14th March 2023 Commons Chamber

[James Cleverly]

We recognise that international students coming to UK universities is an incredibly important part of our economy. That is important for our soft power internationally, and it is one of those things where the knowledge that those students take back to their countries of origin helps those countries, too. We recognise how important it is, and I will continue to work with other Departments to ensure that our international offer to students remains top quality.

[Liam Byrne (Birmingham, Hodge Hill) (Lab)]

The global crisis of malnutrition threatens the lives of 200 million people. Will the Development Minister look to support my early-day motion 951, which seeks to welcome the Bridgetown agenda, which will transform the mission, the model and the money in the global finance development architecture? Now is not the time for half measures.

[Mr Mitchell]

The right hon. Gentleman will be aware that Government Ministers do not normally sign early-day motions, but in respect of his point about Bridgetown, there is no more important agenda around internationally. We need to ensure that we turn billions into trillions, as the rich world has promised repeatedly at recent conferences of the parties, and the Bridgetown agenda is in very large part the way we do that.

Russian Assets: Seizure

Liam Byrne Excerpts

Tuesday 14th March 2023 Commons Chamber

[Sir Iain Duncan Smith]

Of course, I completely agree with the hon. Gentleman on that. Interestingly, if we manage to criminalise the failure to disclose sanctioned assets, we are halfway there on his point, because they cannot then escape. If we prove that sanctions evasion is taking place, this can be the basis for asset recovery in due course; we would then have a reason why we should be doing this, not just because of the criminal purpose, but for the fact that we would actually be able to gain funds.

[Liam Byrne (Birmingham, Hodge Hill) (Lab)]

The right hon. Gentleman is making an excellent speech. Is he as worried as I am about this new trick that the Treasury is performing called “general licences”? There are now whole categories of spending where the Treasury is basically issuing carte blanche to oligarchs to spend what they like and, worse, it is refusing to reveal that framework to us here in this House.

[Sir Iain Duncan Smith]

I agree with the right hon. Gentleman; this is beginning to sound like one of those “golden visas”. It was golden in description, but dirty and leaden in reality, and I think this is where we are again. We are going to find us all in agreement—

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[Liam Byrne (Birmingham, Hodge Hill) (Lab)]

I welcome the speech by the right hon. Member for Chingford and Woodford Green (Sir Iain Duncan Smith), which I thought was excellent. I will supply three further thoughts and set the context for the scale of the task of Ukrainian reconstruction. I am glad the Government have offered to host the June conference for reconstruction finance, following on from a member of conferences in Lugano.

It is worth setting out for the House the sheer scale of the finance we need to mobilise, which is why the right hon. Gentleman is correct to say that we must start by seizing Russian assets now. Frankly, we will need to provide an enormous amount of money to our Ukrainian colleagues. Ukrainian GDP has been hit by about 45%; the World Bank thinks its budget deficit this year will be something like $38 billion. As many who have been there know, Ukraine has very high inflation and therefore very high interest rates; perhaps one third of businesses have stopped operations, 14 million people have left their homes, 6 million have gone abroad, there has been huge educational disruption for the next generation of Ukrainians and about half the energy infrastructure has been knocked out.

This has been a moment where the Bretton Woods institutions have really stepped up. Between the International Monetary Fund and the World Bank, something like $27 billion has been supplied this year. Those Bretton Woods institutions offer us one of the most efficient and effective routes for providing what could be, on current estimates, a $750 billion bill to rebuild the great country of Ukraine. As chair of the parliamentary network on the World Bank and International Monetary Fund, I am delighted that we have just launched the Ukraine chapter of the network. I am also delighted that at our global parliamentary forum, at the beginning of the spring meetings in Washington in April, we will have a special session focused on reconstruction finance for Ukraine.

However, $750 billion is a big number. Capitalising those kinds of loans could take $150 billion-worth of equity. That is why seizing, let us say, $300 billion of Russian bank reserves frozen abroad will be incredibly important in helping to supply that money.

[Alex Sobel]

With the reconstruction conference taking place in London on 21 and 22 June, does my right hon. Friend not think it is important for us to involve the IMF and World Bank in that conference and ensure that we have a rounded package for Ukraine, rather than working in silos or isolation?

[Liam Byrne]

It is crucial that we do that, and the spring meetings in Washington should provide a springboard, but the most efficient way of surging the necessary money into Ukraine is through the Bretton Woods institutions that we set up in 1944 to finance post-war reconstruction. We did it before—let us try it again.

My second point, having set the stage and set out some of the numbers, follows on from the right hon. Member for Chingford and Woodford Green. We now have to identify the legal strategy for turning this idea into a reality. All of us in this House are frustrated that the Government—and, indeed, Governments around the world—are, we feel, dragging their feet when it comes to putting in place the necessary laws to move from freezing to seizing. There are probably three components that we need to shift into place: there needs to be action at the United Nations; there needs to be action to set up the tribunal to prosecute Russia for the crime of aggression; and then we need to implement the ten-minute rule Bill of my hon. Friend the Member for Rhondda (Sir Chris Bryant), which would create the legal framework for action.

[Bob Seely]

rose—

[Liam Byrne]

I will say a word about each of those things after I have given way to the hon. Gentleman.

[Bob Seely]

Does the right hon. Gentleman have a preferred option? Although it will be legally possible to seize Russian state assets—that has arguably been done before, so there is precedent—is he concerned about the seizure of private assets? I am tempted to say that those are legal. They are seized assets from a dirty period of Russian history, so I think one could say that they are not illegal, but how legal they are is another matter. If we are seizing oligarchs’ assets, how can we do so legally without setting a more tricky precedent?

[Liam Byrne]

I will come to that now. There are three things that we will need to do. It is not just about private wealth; it is about public wealth—the assets of the Russian central bank. We know that $300 billion was held abroad. We know where about $30 billion of it is, and that money has been frozen. To seize that money, we will need to do a couple of things.

First, we will need to bring the world together at the United Nations to pass a resolution that revokes the doctrine of immunity for central banks when there has been a clear violation of the United Nations charter. I am under no illusions; we will not get 100%, but by getting a significant number of nations to sign up to that resolution, we begin to change the parameters of international law. That means that domestic law, when we move it, will be in a much safer legal space. Indeed, many international lawyers would say that seizing those assets is a legitimate countermeasure, but if there is a UN resolution, we have begun to change the concept of what is protected by immunity—such as central bank assets—and what is not.

Secondly, we then have to ensure that we do not fall foul of the European convention on human rights, particularly the first protocol, which enshrines the right to the enjoyment of assets. We have to ensure that there is no way that the Russian Government can be considered a victim. The safest way we can do that is to move quickly, as President Zelensky has proposed, to begin prosecuting Russia for the crime of aggression. If we have a UN resolution that has begun to revoke the concept of immunity in the case of aggression, and a tribunal that is prosecuting Russia for the crime of aggression, we will have begun to change fundamentally the context of international law.

[Bob Seely]

I know that the right hon. Gentleman is about the most expert person here when it comes to the workings of the international financial institutions and so on. Does he expect or think that we will be able to seize oligarch assets as part of that process? If so, do we have any idea how we will proceed down that route, or are we looking only at Russian state assets? At some point, all the oligarchs close to Putin will get their billions back.

[Liam Byrne]

I think that we can use the same tactics to seize private and public assets, but I am conscious that we have to change the context and parameters of international law first. That is how we maximise the safety of domestic legislation, which has to be the third step. We in this House are lucky that my hon. Friend the Member for Rhondda has set out precisely how to do that in his ten-minute rule Bill.

Crucially, we need to ensure that the State Immunity Act 1978, which gives immunity to central banks, is revoked or at least conditioned in a way that allow laws to be presented here so that we in Parliament can order the seizure, forfeiture and repurposing of assets.

My final point is a little more short term, meaning now. If we are to maximise the assets that we seize and repurpose for the reconstruction of Ukraine, we have to get serious about sanctions enforcement. Right now, frankly, we are not. There will be a lot more money available if we stop the nonsense that is going on in the dark at the moment. The truth is that sanctions enforcement in this country today is the proverbial riddle wrapped in a mystery inside an enigma.

As the right hon. Member for Chingford and Woodford Green said, we have been told that as of October 2022, £18.4 billion-worth of Russian assets have been frozen in this country. We then learned from the scandal exposed by openDemocracy that the Treasury has been issuing licences like confetti, even to warlords such as Prigozhin, the head of the Wagner Group—in his case, to fly English lawyers to St Petersburg to prosecute an English journalist in an English court in order to silence him because he was writing the stories that triggered the sanctions against Prigozhin in the first place. What a nonsense!

As I began to dig into this, much worse was revealed. In the last Office of Financial Sanctions Implementation report, it was revealed that the Treasury is no longer issuing licences to individuals one by one to authorise specific expenditure; it is now issuing general licences that authorise an entire category of spending. In fact, 33 general licences were issued last year, so I naturally asked what the value of those general licences totalled. I was told on 15 February in a parliamentary answer:

“The Office of Financial Sanctions Implementation (OFSI) does not disclose data from specific licences it has granted under UK sanctions regimes.”

When the Exchequer Secretary to the Treasury came to the House on 25 January, we asked him whether, if he cannot tell us what the total value of the licences is, he could at least tell us what the licences were issued for. He said he could not tell us that because

“there is a delegated framework”

and that these decisions

“are routinely taken by senior civil servants.”—[Official Report, 25 January 2023; Vol. 726, c. 1014.]

I then asked what this delegated framework was and whether we in this House might have a look at it. I first tried a parliamentary question. The answer came back on 8 February:

“There are currently no plans to publish the delegation framework.”

I then had to try a freedom of information request, and I have it here in my hand. It came back to me on 9 March, and it says:

“we can confirm that HM Treasury does hold information within the scope of your request.

The information we have identified…we believe may engage the exemption provided for by section 35(1)(a)—formulation or development of Government policy.”

We now have a situation where Ministers are saying that it is the civil servants’ job, and the civil servants are saying that it is advice to Ministers. For that reason, we cannot get to what this delegated framework looks like.

I then asked whether they could at least tell us how many people we have busted for sanctions evasion. The Office of Financial Sanctions Implementation confessed that there were 147 reports of a breach last year, but when I asked the Minister for Security how many criminal investigations had resulted from that, he said that he could not answer

“For reasons of operational security”.

I went back to the Office of Financial Sanctions Implementation report to double-check, and of 147 reports of a breach, there have been a grand total of two monetary fines, both to fintech companies.

So there we have it: £18 billion frozen and licences issued like confetti in a secret regime that Ministers say is down to civil servants and civil servants say is actually advice to Ministers. Despite this flagrant abuse—and we know the scale of it, because the Financial Times told us that $250 million has been laundered by the Wagner Group—we have just two fines that total £86,000. Well, £86,000 in fines is not going to do much to help us rebuild Ukraine. I ask the Minister on the Front Bench to explain to us how she is going to do an awful lot better than that.

Sanctions enforcement in this country stinks to high heaven, and what concerns me most is the culture of secrecy around it. Many of us in this House have been around long enough to know that such a culture is never a recipe for good public policy. We in this House have to be realistic about the scale of finance that is needed; maximise the use of our Bretton Woods institutions; and move internationally and domestically, together with our allies, to change the parameters of international law and maximise the safety and security of domestic legislation that we pass here. But let us move now to send a clear signal from the UK—the home of the rule of law—that this is not going to be a safe haven for sanctions evasion. We are going to send that clear message by getting tough, and getting tough now.

[Mr Deputy Speaker (Sir Roger Gale)]

If we are going to get everybody in, we are going to have to have a self-denying ordinance of about six minutes.

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[Sir Chris Bryant (Rhondda) (Lab)]

It is a great delight to take part in this debate. I feel as if I spend more time than I ever thought I would with the right hon. Member for Chingford and Woodford Green (Sir Iain Duncan Smith) these days, and I have friends who are bit disturbed by it. But he probably has friends who are a bit disturbed by it as well. The important point is that, if the Russian ambassador, or for that matter the Ukrainian ambassador, were to look at this debate, they might think that there are not that many people in this Chamber, but that is not because of a lack of resolution by the whole membership of this House, which is determined to ensure that we will do everything in our power—we will make sure that the Government of this country and the whole of this country will do everything in their power—to ensure that Putin does not win this illegal, criminal war that he is engaged in and has been engaged, to my mind, since 2014, not just since last year.

I am going to talk about three things: sanctions, seizing assets and who pays. On sanctions, it is often said by Ministers—I am going to be nice to Ministers because I like this Minister, and because I want them to do something and sometimes being rude about them does not work—that we are doing more sanctioning than we have ever done before. I just gently say that that is not true. We had a more comprehensive sanctions regime over Iran—not at the moment, but formerly—than we presently do over Russia. So we have to consider further sanctioning, which has to happen. It is true we did not sanction any individuals in relation to Iran and we are doing more individuals in relation to Russia, but it is the whole Russian economy that we need to debilitate so it cannot win the war.

The Minister knows that I worry we are not sanctioning enough individuals. Sometimes it feels as if the Government feel that job is done. It is not. As several hon. Members, including my right hon. Friend the Member for Birmingham, Hodge Hill (Liam Byrne), have said, there is an issue about sanctions busting. I am certain, although I do not have proof, that sanctions busting is going on in the UK every single day of every week and has been ever since we started this process. For a start, we gave plenty of warning. People have referred to Roman Abramovich. I recall the then Prime Minister saying at Prime Minister’s questions that he had been sanctioned, but it turned out that he had not. That was a pretty good signal that he was about to be sanctioned. A couple of weeks later, because of stuff I was able to reveal about what the Home Office had been saying about Abramovich for several years, he was then sanctioned. By that time, however, yet more money had been siphoned off to another part of the world. It is true that the proceeds of the £2.3 billion sale of Chelsea football club, which happened in May last year, will eventually go Ukraine, but it has taken a very long time to put that in place. I know Mr Penrose is engaged in that and is eager to make that happen as fast as possible—incidentally, it will dwarf the contribution the UK has already made— but that contribution was not forced on Abramovich by law. In the end, he decided to agree to it. So that does not really quite count.

Treasury licences have been referred to. They are giving carte blanche to many individuals to circumvent the sanctions regime. There are undoubtedly enablers in the City of London, the same enablers we have known for years, who have enabled the dirty money to swirl around in the UK economy. There are the lawyers, the very posh law firms with very thick carpets and very thick marble walls that are doubtless refurbished every two years on the back of money that was stolen from the Russian people by people who should have been sanctioned. There are estate agents, banks and countless individuals who, without any thought to the morality of the situation, are still happy to enable sanctions busting. My worry is that there is hardly anybody in Government tracking down whether that is happening or not. Has anybody turned up to any estate agent office in Mayfair and said, “Are you checking whether any of these individuals you are buying and selling from are sanctioned individuals?” Has anybody done any investigations? I very much doubt it.

[Liam Byrne]

As ever, my hon. Friend is making a brilliant speech. I was shocked to hear that suspicious activity reports are not triggering enforcement actions for sanctions busting either. Is that not an argument for broadening the suspicious activity report regime, so that it does include people like estate agents? Surely, we should be using that as evidence to trigger prosecutions.

[Sir Chris Bryant]

Absolutely. I do not know whether my right hon. Friend has ever tried to open a bank account in the last few years, but it is almost impossible for a British Member of Parliament. I suspect it is much easier for a Russian oligarch to do so than it would be for anybody else. I really hope the Minister will take away the view of the whole House that we have to get serious about cracking down on sanctions busting in the UK.

I like a Magnum when I go to the cinema. It still upsets me that Unilever thinks that Magnums are essential in Russia, which is why it is still doing business there. Unilever should be pulling out completely from Russia. The Russians should forgo their Magnums—or is it Magna? I do not know what the plural is. For that matter, Infosys should not be operating in Russia, either.

I worry that some of our allied countries are providing a very safe haven for sanctions busting, including the United Arab Emirates. In the last year, it has become a complete paradise for dirty Russian oligarch money. If countries such as the UAE want to remain allies with us, they need to think very carefully. They may say, “Oh, but it’s only money. We are only doing what you did for years.” I hope that we in the UK are now learning the lesson of what happens when we give out golden visas to people just because they have lots of money, and do not ask any questions. It ends up biting you on the backside.

On seizing assets, I am sick and tired of the pearl-clutchers. People say, “Oh, I know. It’s really, really important. We really have to do something, but you know, Mr Bryant, you don’t understand. It’s terribly, terribly hard.” I am sorry, but where there is a will, there is a way. People want to wave sovereign immunity around all over the place, but what about the sovereign immunity of Ukraine? That was guaranteed by Putin personally, and the UK and other countries when we all signed up to the Budapest accord. Several years later, it turned out that we did not mean it quite as categorically as we stated on that piece of paper. There must surely come a time when sovereign immunity has to be waived because otherwise there is complete impunity when one country invades another. In the end, that is simply inviting countries to invade other countries.

I understand that the seizure of oligarchs’ assets is not easy. Prigozhin’s mother has just managed to win an appeal, as I understand it. But it would be much easier if there were an amendment to the Economic Crime and Corporate Transparency Bill, as several Members have mentioned already in this debate, to make it an offence for a sanctioned individual not to reveal all their assets. That would certainly make it easier for us to do that.

On state assets, I do not believe that sovereign immunity can be absolute. It is preposterous that we are sitting here, watching Canada and wondering how it will go there. When was it ever the British attitude to watch what is happening across the other side of the ocean? As my right hon. Friend the Member for Birmingham, Hodge Hill, said, it would be much easier for us to take legal action if, first, we had a United Nations resolution and, secondly, we set up a special war crimes tribunal to consider the matter of a war of aggression. Unfortunately, although the British delegation at the Nuremberg war trials said that a war of aggression was the ultimate war crime, that has not thus far been so determined. It would certainly assist us if we were able to get that. It would also assist us if we were to amend the State Immunity Act 1978.

I come to the fundamental point: everyone knows that Ukraine will have to be reconstructed. Cathedrals; schools; libraries; hospitals; people’s homes; hundreds and hundreds of apartment buildings have been completely destroyed; roads turned into craters; bridges destroyed—sometimes by the Ukrainians to prevent the Russians further invading; electricity pylons. The whole system is completely in need of reconstruction.

In the end, there are only three options for who will pay for that. The people of Ukraine cannot afford it, and it is immoral to say that they should pay. There are Ukraine’s allies, or rather their taxpayers around the world. I am absolutely certain that, as individuals, many people in the UK—including in my constituency—will want to make a personal contribution. The British taxpayer has already made contributions through the British Government. But in the end, we are talking about $1 trillion-worth of reconstruction costs already. To be honest, the £23 billion-worth of Russian state assets sitting in British banks at the moment will only touch the sides. However, if we add the €350 billion-worth sitting in European banks, along with the amounts in Canada, Australia, the USA and all the other countries in the world, we might just be able to make a dent.

Anybody from Ukraine who is watching this debate will know that we all stand four-square behind them. We want to do so not only in our words, but in our deeds. I beg, I implore the Government: you do not have to use my Bill. My Bill is completely irrelevant; it is just a way of teasing you along to do the right thing. I know you want to do the right thing—I mean the Government, not you, Mr Deputy Speaker, although you probably want to do the right thing as well. Whenever the Government are prepared to table the legislation, we all stand ready to vote it through as swiftly as we can.

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[The Minister of State, Foreign, Commonwealth and Development Office (Anne-Marie Trevelyan)]

I thank my right hon. Friend the Member for Chingford and Woodford Green (Sir Iain Duncan Smith) for securing this important debate. I am grateful to him and other hon. Members for the points they have raised, which I will do my best to address this evening. As ever, I will make sure that we write to Members if I am not able to pick up any specific points.

As we move into the second year of Putin’s illegal and brutal war, I am grateful for the ongoing unity shown by hon. Members on both sides of the House and for the shared determination to support President Zelensky and all Ukrainians until they prevail. It is an honour to have some of our Ukrainian friends in the Gallery today.

Before addressing the seizure of Russian assets, I underline the magnitude of the UK’s response to Putin’s invasion. Although I hear the challenge of the hon. Member for Rhondda (Sir Chris Bryant) on the quantum of sanctions to date, I will set out what we have done so far. The UK alone has sanctioned more than 1,500 individuals and entities with a net worth of $145 billion, and we have frozen more than £18 billion-worth of Russian assets—assets that Putin now cannot use to fund his war machine. We have also introduced an unprecedented number of trade measures, which have led to a 99% reduction in imports of goods from Russia and a 77% reduction in exports of UK goods to Russia. All those measures have been determined to restrict Putin’s ability to fund and sustain his illegal war. The measures represent the most severe sanctions ever imposed on Russia. The package of sanctions to date includes asset freezes on 23 major Russian banks, with global assets worth $960 billion—that is 80% of Russia’s banking sector—the prohibition of Sberbank from clearing and the removal of 10 banks from SWIFT.

I remind the House that we have sanctioned the Wagner Group in its entirety, and its leader, Prigozhin. My right hon. Friend the Member for Chelmsford (Vicky Ford) will know that, although I cannot comment on whether an organisation is or is not under consideration for proscription, her comments have been noted.

[Liam Byrne]

The Financial Times has revealed that the Wagner Group has channelled $250 million into its organisation through sanctions evasion. Is that not evidence that the sanctions implemented against the Wagner Group are not working? What information can the Minister supply to persuade the House that the enforcement regime is actually effective?

[Anne-Marie Trevelyan]

I will come back to that in a moment.

The right hon. Gentleman also set out, with his usual articulateness, a very clear pathway through which the UN and the international community might work together to seize Russian state assets. I hope I can reassure him that we will continue to work at the UN with all like-minded countries to address the asset seizure challenge.

The latest package of internationally co-ordinated sanctions and trade sanctions was introduced to mark the anniversary of the invasion on 24 February, and it includes export bans on every known item Russia has used on the battlefield. This combined package of sanctions has been carefully constructed with our allies to cripple Putin’s supply chains, to limit his ability to finance his war and to target those who are propping up his regime. It serves as a stark reminder to Russia and any other would-be hostile actors of the cost of flagrantly assaulting the democracy, sovereignty and territorial integrity of another nation.

As Members have highlighted in the debate, the reconstruction of Ukraine is absolutely at the top of the international agenda, while we continue to support Ukraine to defend its country. In September, the World Bank estimated a cost of $349 billion to rebuild Ukraine—a figure that has been rising every day since. Indeed, colleagues have highlighted recent assessments with figures of about $750 billion. Those are monumental sums to consider in respect of the reparations that will be needed.

The UK Government will continue to take a leading role in determining how to assist in this long-term reconstruction challenge. In June, we will be co-hosting the 2023 Ukraine recovery conference in London, alongside the Ukrainian Government. Together, we will mobilise public and private funds to ensure that Ukraine gets the reconstruction investment it needs.

We also remain committed to continuing our direct support for Ukraine. To date, we have helped more than 13 million Ukrainians affected by the war, providing them with £220 million of vital humanitarian assistance, delivered through the United Nations, the Red Cross and other non-governmental organisations. We will continue to work alongside our Ukrainian friends in support of their military defence for as long as they need us to do so.

The key issue of seizing Russian assets to fund Ukrainian reconstruction is one that the Government are extremely focused on, and we are in close discussions with friends and allies. The Government remain clear that Russia must be made to pay for the harm it has caused in its illegal war in Ukraine, in line with international law. The Prime Minister made that clear in the London declaration he signed with President Zelensky during his recent visit to the UK and in the G7 leaders’ statement on 24 February. We have been 100% clear: Putin must pay. We are working in the FCDO, in consultation with other Whitehall Departments and our G7 partners, to review all lawful options to make frozen Russian assets available for rebuilding Ukraine.

Integrated Review Refresh

Liam Byrne Excerpts

Monday 13th March 2023 Commons Chamber

[James Cleverly]

My hon. Friend makes an important point. That is why we have moved to integrated reviews, recognising that defence, diplomacy, international development and trade policy are all interwoven. To have a truly effective international posture, all those functions of government need to go hand in hand, in close co-ordination with non-governmental organisations such as the BBC World Service. That is why we had the integrated review in ’21 and the integrated review refresh today. I assure him and the whole House that we will continue to work in close co-ordination across Government to deliver on it.

[Liam Byrne (Birmingham, Hodge Hill) (Lab)]

I welcome what I heard was the recognition that when it comes to China we need to do far more to defend our values, while recognising that there are global public goods that we need to work on together, such as climate change, nuclear proliferation in the Pacific and global development. Since the last integrated review, the so-called “tilt” to the Indo-Pacific has entailed £3 million extra in FCDO staff, three extra British high commissioners in the Pacific, two extra warships and less than 1% of the MOD headcount. That it not a tilt but a glance in the right direction. Could the Foreign Secretary tell us how big the package will be to finance the tilt needed to an area of £4.3 billion people?

[James Cleverly]

The right hon. Gentleman seems have embedded in his question the idea that our posture to the Indo-Pacific is a one-off event. It is not; it is a permanent recalibration of our foreign and defence policy. My first set of bilateral visits as Foreign Secretary was to Japan, South Korea and Singapore. The Defence Secretary is flying to Japan at the moment to build upon the agreement that we have made between the UK, Italian and Japanese Governments. We have made a long-term commitment that is being resourced. The carrier strike group’s main voyage to the region is building towards what is a permanent recalibration of our international focus, to recognise that the centre of gravity of world affairs is moving eastwards and southwards. We are responding to that.

Ukraine

Liam Byrne Excerpts

Monday 20th February 2023 Commons Chamber

[James Cleverly]

The British people, in every corner of the United Kingdom, have demonstrated a generosity of spirit that is admirable. That should make every single Member of this House proud.

Ukraine’s heroic armed forces have already recaptured thousands of square miles from the Russians, driving them out of more than half of all the territory it grabbed last year. But Putin shows no sign of withdrawing his forces. If we are to change his mind, Ukraine will need to take back more land. Today, the Russian army is on the defensive, morale is pitiful, casualties are immense, and its troops are running out of key weapons and ammunition. This is exactly the right moment for Ukraine to seize the advantage. That is why we and our allies must step up our effort to ensure that Ukraine wins this war and secures a lasting peace. Justice must be served on those responsible for war crimes and atrocities, in accordance with international law.

[Liam Byrne (Birmingham, Hodge Hill) (Lab)]

The Foreign Secretary has made an outstanding start to the debate. Last week, the Vice-President of the United States said that the US has formally determined that Russia has committed crimes against humanity. Has His Majesty’s Government now come formally to the same conclusion?

[James Cleverly]

We are looking very closely at the evidence that is being compiled. While we have not made a formal designation, I can assure the right hon. Gentleman, and other right hon. and hon. Members across the House, that we will ensure that those who are responsible for atrocities, whether in the field or right up to the desk of Vladimir Putin himself, will be held accountable.

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[Mr Lammy]

My hon. Friend is absolutely right to raise the issue of Moldova and its vulnerability at this time. I fully suspect that other Members will return to this issue in the course of the debate. Moldova is feeling very worried one year on from the start of the war. We must stand with them. My hon. Friend is right to refer to the cyber-terrorism alongside it that has become a benchmark of Putin’s aggression.

Thirdly, we must never again allow ourselves to become dependent on autocrats and their fossil fuels for our energy. Decarbonisation is now a vital national security imperative. The faster we can transition to clean power, the quicker we can undermine Putin’s war effort. Every solar panel is a shield to Putin’s aggression; every wind farm a defence against dependency. In developing our home-grown energy systems we can build the green jobs and the transformational industry of the future.

Fourthly, we are reminded of the essential relationship with our European allies. We have shared interests, shared geography and common values with our neighbours in Europe. NATO will always be the anchor of our defence and the cornerstone of European security, but it is more important than ever that we have strong diplomatic partnerships with our European allies and a close, co-operative relationship with the EU itself. This is too serious a time to be starting unnecessary fights or engaging in petty diplomatic squabbles.

As we approach the one-year anniversary of the war, it is obvious that we are entering a new and dangerous phase. Last week, NATO and western intelligence agencies warned that Putin had started amassing fighter jets and helicopters near the Ukrainian border—a sign that as we enter spring, Putin is adopting a new approach to the war that could see greater use of Russian air power to support its faltering land offensive. In recent days, both Ukrainian and NATO officials have warned of ammunition shortages, dwindling domestic stockpiles and supply chains under increased pressure. If Ukraine is to prevail over what Putin will throw at it, the UK and our allies should set aside individual announcements and instead lay out a long-term strategy to provide the support that Ukraine needs, whether it be ammunition, additional air defence capabilities or NATO-standard weaponry.

We need to ensure that Ukraine has our total support to tackle the Russian threat from air and land. Alongside that military assistance, we need a new diplomatic drive to sustain and broaden the diplomatic coalition against this war. Russia’s invasion was an attack not just on Ukraine but on the international order itself. It is perhaps the most egregious violation of the UN charter since it was written: a sovereign UN member invaded by a permanent member of the Security Council.

We need to work with Ukraine and partners around the world to make clear the truth of this war and counter Putin’s propaganda; to make it clear that it is Russia that has chosen this war; it is Russia that is the aggressor; it is Russia that is willing to use global hunger as a bargaining chip; it is Russia that is trying to change international borders through force. We will be less secure if that aggression is allowed to succeed.

Our support for Ukraine must entail action at home as well as abroad. At home here in the UK, we must complete the job and get our own house in order. That means tackling Putin’s kleptocracy, closing the loopholes that continue to exist in our sanctions regime and properly enforcing our own laws on illicit finance. We will go still further. Russian rockets and Iranian drones have destroyed Ukraine’s hospitals, energy plants and homes. Whole villages, towns and cities have been reduced to dust, rubble and ruin. By some estimates, the damage to infrastructure is more than $100 billion. Without proper funding, the essential task of rebuilding Ukraine will take decades to complete.

As long ago as July 2022, the then Foreign Secretary, the right hon. Member for South West Norfolk (Elizabeth Truss), said that the Government supported using frozen Russian assets to support Ukraine. But since then, we have heard nothing. Sure, the right hon. Lady will refer to that in her speech later. The EU has already set out a plan to shift frozen assets into a fund to help rebuild Ukraine. As has been said, Canada has already legislated to do that, so why have our Government not done the same? Ukrainians do not have the luxury of time. This is an urgent point, so I ask the Foreign Secretary once more: what steps have this Government taken since July 2022 to ensure that seized Russian state assets can be used for the benefit of Ukraine? Further, will the Government support the Bill of my hon. Friend the Member for Rhondda (Sir Chris Bryant), which would allow Russian state assets to be used for that same purpose?

Throughout the horrific last 12 months, the body of evidence of Russian war crimes in Ukraine has grown and grown. On a weekly basis we hear horrific reports of mass graves discovered in liberated areas. On the TV, we see sickening videos of schools, hospitals and churches bombed to destruction, and innocent civilians murdered and tortured. These crimes demand accountability and they demand justice. We strongly support all international efforts to document, investigate and prosecute these crimes. Again, we believe we should go further.

Since March, Labour has been calling on the Government to support the creation of a special tribunal to prosecute Putin and his top brass for the crime of aggression. The Foreign Secretary knows that, while the International Criminal Court can investigate war crimes committed in Ukraine, it cannot investigate Russia for the crime of aggression. Only a special tribunal, working alongside the ICC, can ensure that this gap of accountability is bridged. The Ukrainian people want this tribunal. Zelensky wants this tribunal. The EU Commission wants this tribunal. France, Germany, Estonia, Latvia and countless others have called for it. So will the Foreign Secretary commit to its creation and, if so, what steps has he taken to make it happen?

Finally, Putin’s invasion of Ukraine has demonstrated more clearly than ever before how our security is connected with the security of the rest of Europe. The past 12 months have shown vividly what can be achieved when we stand united with our allies on the other side of the channel.

[Liam Byrne]

My right hon. Friend is making a brilliant speech. Was he as surprised as I was that there was so little mention of that kind of threat in the Integrated Review? Does he support the call that the next iteration of that Integrated Review absolutely has to put the re-containment of Russia centre stage?

[Mr Lammy]

My right hon. Friend is absolutely right. He has been crystal clear on that from the Back Benches. We await that review, but what he says has to be central. We must get it right. Obviously, we will scrutinise it in every detail. In many of the areas that have been critical to supporting Ukraine defend herself against Russia—sanctions, energy security and defence—our co-operation with the European Union has been critical—it has been critical to our support for Ukraine and, through that, Ukraine’s survival. It is more important than ever that we have strong structured mechanisms for dialogue and co-operation with our allies in Europe. That is why Labour has proposed a new UK-EU security pact that could cover deeper co-operation on foreign policy, defence, security and law enforcement.

Labour’s commitment to NATO is unshakeable, yet the UK’s leadership in NATO could be at risk, with growing concerns over our capacity to meet NATO’s obligations in full. While 20 NATO nations have revised their defence strategies since the start of the invasion, this Government have not done so, so I ask the Foreign Secretary: will the Government commit to rebooting our defence plans, and will they halt their planned cuts to the British Army?

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[Boris Johnson (Uxbridge and South Ruislip) (Con)]

I pay tribute to the Foreign Secretary and the shadow Foreign Secretary for the quality of their speeches this afternoon.

In the year since Vladimir Putin launched his vicious and unnecessary war in Ukraine he has failed in almost all of his objectives. He has failed to take Kyiv. He has been sent scuttling from the Kharkiv region. He has been forced to evacuate Kherson. He has cost the lives of at least 60,000 Russian troops, and seen probably more than 100,000 injured. In the areas that he has occupied in Ukraine, he has created a new Flanders Fields of mud, trenches and blasted trees, where months of high-intensity shelling and bloodshed produced gains that could be measured in yards. He has been forced to such desperate expedients as sending to the front prisoners or terrified members of ethnic minorities recruited from remote provinces. As my right hon. Friend the Foreign Secretary pointed out in his powerful speech, he is running pitifully low on the technically advanced weaponry that he increasingly needs.

The seemingly irresistible force of the Russian military is breaking on the immoveable object of Ukrainian resistance. We in this House remain lost in admiration for the Ukrainians, for their heroism and for the continued inspiration that they are given by Volodymyr Zelensky. Yet it remains all too possible that Putin can still achieve something that he can call a victory. All that he needs to do is hang on to some piece of land that he has conquered and the signal will go around the world that aggression can pay, and that borders can be changed by force. All he needs to do to claim some kind of victory is to continue the cynical policy that he has followed since the first invasion of 2014, which the shadow Foreign Secretary rightly dwelt on, to use his foothold in Ukraine to destabilise the whole country.

Unless Putin is purged from Ukrainian territory, he will twist his knife in the wound. He will bide his time. He will wait until he can attack again. He will continue to menace the lives of the Georgians, the Moldovans—as the hon. Member for Slough (Mr Dhesi) rightly pointed out—the Balts, and everyone living in the periphery of the old Soviet empire. Unless he is finally defeated in Ukraine, Putin’s revanchist ambitions will be unchecked. That is why it is so crucial that we now accelerate our support for Ukraine and give them the tools to finish the job. We can all be proud of what successive Governments have done to help the Ukrainians whose armed forces continue to fight like lions. Indeed, it is they who deserve the credit, but we should be in no doubt that western equipment has been invaluable.

The story of the past 12 months is that, sooner or later, having exhausted all the other options, we give them what they need—from anti-tank missiles to HIMARS to tanks. If the choice is sooner or later, then, for heaven’s sake, let us give these weapons sooner. It is absurd for western supporters to keep pressing the Ukrainians, as they did at the Munich security conference, on how long this is going to take; the answer to that question is to a large extent determined by us.

It is a fine thing that we have finally promised tanks, but there is no conceivable ground for delay in getting them to Ukraine. We need those machines—Abrams, Challengers, Leopards—to make a real difference in real time in the next few weeks, not next year. It is admirable that we are proposing to train Ukrainian fighters to fly NATO fast jets—I hear the caution of my right hon. Friend the Member for Beckenham (Bob Stewart)—but it is curious that we are doing so before we have even taken the decision in principle to give them the planes. Let us cut to the chase and give them the planes too. If the House was in any doubt about the urgency of increasing our supply of equipment to the Ukrainians, it is becoming ever clearer that China is preparing to arm the Russians.

The Ukrainians have shown what they can do. They have the elan and the courage to sweep Putin from their lands, and they have the inestimable psychological advantage that they are fighting for hearth and home. With the right kit, including more long-range artillery, they can punch through the land bridge, cut off Crimea and deal a knockout blow to Putin’s plans, and they should not stop there.

It is time for us all to end our obfuscation about what we think of as a Ukrainian victory and what we think of as Ukraine. The Ukrainians must be helped to restore not just the borders of 24 February last year, but the 1991 borders on which they voted for independence. It was the west’s collective weakness in 2014, its effective acquiescence in Putin’s aggression, that helped to convince him that he could launch an attack last year. Whatever the good intentions of the Normandy format, we cannot say that it was a success; nor, frankly, can we say that the UK was right to absent ourselves from that format and from those discussions. We must not make that mistake again.

After a year of slaughter, we must do more collectively to show the people of Russia what they are losing by Putin’s misrule. We should tighten the sanctions on oil and gas wherever we can. I hear the arguments that hon. Members make about the need to use frozen assets and, whatever the complexities, I think the House deserves to hear those arguments properly thrashed out. We should be making it clear to Putin’s entire war machine, as well as to the regime in the Kremlin, that they will be held to account for their crimes, for the torture, rape, and indiscriminate killing they have sponsored. We must show them that the mills of justice grind slowly, but they grind small.

We should designate Russia a state sponsor of terrorism, placing that country where it now rightly belongs on the list that includes Cuba, North Korea and Syria—and, by the way, we should designate the infamous and bloodthirsty Wagner Group a foreign terrorist organisation. That is a badge that is now richly deserved and long overdue.

[Liam Byrne]

Will the right hon. Gentleman give way?

[Boris Johnson]

I am just winding up.

Above all, we must give the Ukrainians what they need to win this war this year. By ensuring that Ukraine wins and Putin fails, we are making the best and most financially efficient investment in the long-term security of not just the Euro-Atlantic area, but the whole world. We all know that we in this country made a promise to Ukraine under the 1994 Budapest memorandum, when the Ukrainians gave up their vast nuclear arsenal. We said we would come to their aid in the event of an attack. Now is the time, finally, to do what we can to honour that promise. The Ukrainians are fighting not just for their freedom, but for the cause of freedom around the world. We should give them what they need, not next month, not next year, but now.

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[Liam Byrne (Birmingham, Hodge Hill) (Lab)]

It is a great privilege to follow the excellent speech of the right hon. Member for South West Norfolk (Elizabeth Truss), as well as that of the right hon. Member for Uxbridge and South Ruislip (Boris Johnson), the Foreign Secretary and my right hon. Friend the Member for Tottenham (Mr Lammy).

I will add three points to the debate: first, on the importance of how we break the balance of force that we see arranged on the ground; secondly, on how we choke the oligarchs of war who are helping to supply Putin’s war machine; and thirdly, on how we commence the pursuit of justice. There is more to say about that, because I was unhappy to hear the Foreign Secretary, who is just leaving his place, not row in behind the Vice President of the United States and say that our Government had also arrived at the conclusion that Russia was committing crimes against humanity. One has to ask, how much more evidence do they really need?

We have heard the call loud and clear from two former Prime Ministers about the need to supply what Ukraine needs now. The truth is that both sides of the conflict will find it difficult to summon the 400,000 to 500,000 troops necessary to make a breakthrough one way or the other, so the challenge that may lie ahead is that Ukraine continues to suffer the pattern of more and more troops being thrown into infantry attacks under artillery fire in the east of the country and endless missile strikes on population centres. That is a grinding, terrible waste of life.

We have to leapfrog out of this bad habit that we have gotten into where first we say no, then we say yes, with an extended time period in between. On air defence, we said no to Patriot missiles until we said yes. On tanks, we said no until, months and months later, we said yes. Now, can we please just short-circuit the process and send the F-16s as fast as possible, with trained pilots? It is great to hear that we are training pilots, but at last week’s Munich security conference there was a clear consensus among Democrats and Republicans to send a very clear message to the President of the United States that it was time that fast jets were sent to support our allies in Ukraine. We heard directly from President Zelensky, just a few yards from this Chamber, that the wings of freedom are needed today, so let us jump out of the no and get to yes as fast as possible.

[Mr Francois]

We gave 14 Challenger 2 tanks to Ukraine. Those are very capable tanks, but in and of themselves they will not change the whole course of the war. What they did do, however, was help unlock the delivery of hundreds of Leopards. What the Ukrainians really want are MiGs, which they are familiar with using, and F-16s. By the same argument, if we gave one squadron of older Typhoons that then unlocked hundreds of MiGs and F-16s, that would be worth doing, would it not?

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[Liam Byrne]

Personally, I think it would, but my key point to those on the Treasury Front Bench is: can we please short-circuit the time it takes to get from no to yes? We have gone through this loop—this doom loop—at least twice before, so let us short-circuit the nonsense now and crack on with it. The Treasury Front Benchers will find that there is cross-party consensus on that question, so please just put the decision in front of us from the Dispatch Box. Last week, we heard from the head of the Ukrainian air force that those fast jets are needed now in order to change the balance of power on the battlefield, but also to protect the population centres from Iranian drones as well as Russian cruise missiles. Every single day that we do not take that decision is a day when Putin is allowed to continue raining terror down, not just on the troops of the brave Ukrainian armed forces, but on the civilians of Ukraine. He is using that capability now to perpetrate war crimes, and we in this country have a moral responsibility to damn well stop him.

Secondly, we have to move harder and faster to choke to death the oligarchs of war, starting with the dogs of war at the head of the Wagner Group. Frankly, we were too slow to implement the sanctions that we now have. I am glad that this House passed the measures with cross-party consent, basically allowing us to cut and paste the EU sanctions regime with a little bit of the American regime and to get that into place. It was a shame that it took the war in Ukraine to move a little further ahead with some of the anti-kleptocracy laws that we now have, but here we are—all progress is good.

There is clear evidence, however, that sanctions are being widely evaded, with goods and oil being exported to India and China, rebadged, and then re-exported from there. Given that the Treasury’s Office of Financial Sanctions Implementation thinks it is okay to issue sanction waivers to Prigozhin and his lawyers, I urge Treasury Front Benchers—together with the Americans, if necessary—to get a lot tougher in clamping down on that export and re-export business, because right now that business is supplying dollars that are buying weapons to support Putin.

The symbol of a different order of things has to be a radically different approach to taking on the Wagner Group. We know that today, the Wagner Group is recruiting from prisons—it is recruiting from all over. It is mobilising forces on the eastern front in Ukraine, and frankly, it has opened a second front against democracy in Russia as well. It is active in at least five countries and has business interests in at least another 15. It is short-circuiting the sanctions regime by trading in oil, manganese, gold and uranium—you name it—so it is a matter of concern to this House that we are woefully behind the sanctions regimes that the United States and the Europeans have put in place to suffocate Prigozhin and his forces.

[Mr Dhesi]

My right hon. Friend is making an excellent speech. Does he agree that we also need to try to rein in the Wagner Group’s growing influence in Africa? It is having more and more of an impact on eroding democracy in many nations across the globe, so it is about time that our Government, working with allies, try to clamp down on that.

[Liam Byrne]

My hon. Friend is absolutely right. The right hon. Member for South West Norfolk talked about the need for a global alliance to defend democracy—well, that global alliance has to extend to Africa. We should be concerned about the fact that the Wagner Group is now active in five countries and is poised to make something of a breakthrough in the Sahel after the French evacuation from Mali. Frankly, we should be getting a lot tougher on the Wagner Group, and that should start with a much more comprehensive sanctions regime. When the Minister winds up, I urge him to tell us that the Government will replicate the United States sanctions regime on 21 different individuals who are associated with the Wagner Group and on 16 different corporate entities. That is three times as many sanctions as we have against individuals or businesses associated with Prigozhin.

Let us go further. On 26 January, we heard a very clear pronouncement from our allies in the United States declaring the Wagner Group to be a proscribed organisation, because it is patently a transnational criminal organisation. That contrasts with the situation a couple of weeks ago, when the Under-Secretary of State for Foreign, Commonwealth and Development Affairs, the hon. Member for Aldershot (Leo Docherty), who is not in his place, came before the Foreign Affairs Committee. We were grateful to him for doing so, because for some time the Foreign Office and the Ministry of Defence could not quite decide who was the Minister responsible for taking on the Wagner Group. In due course, the machine did its job and the poor Minister was summoned before us. He was not able to say when the Wagner Group was going to be sanctioned; indeed, he extracted himself from that line of questioning by saying, of course, that it was not his job but a matter for the Home Office—joined-up Government at its very best.

What we have at the moment is not good enough. We need a clear plan, a clear timetable and a clear commitment from the Minister responding today that the Wagner Group will be sanctioned here, just as it is in the United States of America. We need a clear commitment that the individuals who have been sanctioned by the Americans and the European Union will also be sanctioned here.

Finally, while we are at it, could we now end the complete scandal of the Treasury itself licensing sanction waivers for Russian warlords to fly lawyers from London to St Petersburg to summon up a case and to sue journalists such as Eliot Higgins in English courts? What a complete scandal. To top it all, Eliot Higgins was told last week that he is the security risk, and as such cannot be allowed to go to cinema showings of the new film about the brave Mr Navalny. What have we become when we are licensing English lawyers to sue English journalists in English courts? It is not good enough. It is an outrage and it needs to stop, and we need to send a clear signal from this House this afternoon that it ends now. While the Minister is at it, he might consider paying Mr Eliot Higgins’s legal bills. This will surprise the House, but I am told that Mr Prigozhin has not paid his legal bills, which are about £116,000, while poor Mr Higgins has. He has had to cough up about £70,000, so perhaps the Government could do a little whip-round for Mr Higgins and supply an apology to him and to Bellingcat at the end of the debate.

We have to make sure that the weapons supplies are in place and that the sanctions regime is far more effective, and the third piece of the puzzle is that we have to commence the search for justice. It is excellent that the United Kingdom has come together with its allies to ensure that there are prosecutions for war crimes, but many of us in this House will want to see prosecutions for the crime of aggression as well. The abuse that has been laid out has been appalling, with murder, torture, rape, deportation, executions, electrocutions and the crimes of Bucha. The sexual assault of a four-year-old child was reported to the United Nations last week. That is why all of us in this House today should welcome the statement by the vice-president of the United States last week that the US has formally determined that Russia has committed crimes against humanity. We should make the same declaration ourselves. We should do it quickly, and I hope we will hear a gameplan for just that from the Minister at the end of the debate.

[Bob Stewart]

Speaking as someone who has given evidence in war crimes trials—five of them—the thing that really horrified me was that we only got a very small percentage of the people who carried out such crimes. I am talking about genocide and war against humanity. It was a percentage so small that it is almost impossible to measure. If we are going to do this properly, we have to put a heck of a lot of effort into having war crimes trials—almost more effort than with the Nuremberg trials and so on.

[Liam Byrne]

The whole of the House is grateful for the work of the right hon. and gallant Member, because we know that more people were prosecuted because of the work he did than otherwise would have been the case. He is absolutely right to say what he has said. It was 80 years ago that the free world came together to ensure the prosecution of the guilty at Nuremberg. The table of crimes presented was clear. It was crimes against humanity, and we should remind ourselves in this House exactly what that table of crimes entailed: murder, extermination, enslavement, deportation and persecution on political, racial and religious grounds. Those are precisely the crimes that President Putin has committed in Ukraine, and we must make sure, just as we did in Nuremberg, that the free world comes together once more to hold him, as well as his henchmen, to account.

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[Richard Foord (Tiverton and Honiton) (LD)]

It is an honour to follow both the right hon. Member for New Forest East (Sir Julian Lewis) and the hon. Member for Bradford South (Judith Cummins), who really brought this back down to the individual experience of a terrible war, for which I am grateful.

I am going to spend the next few minutes arguing that we should provide for war and prepare for peace. We in the UK should increase seriously our industrial production for defence—Ukraine’s and our own—while also isolating Russia and seizing diplomatic opportunities when they arise. We could characterise this as better preparation and jaw-jaw. I would also like to identify a couple of events from the last century or so that can shine a light on the situation that Ukraine finds itself facing and that Ukraine’s partners find ourselves facing: the 1915 shell crisis in Britain, and the 1999 withdrawal of Yugoslav security forces from Kosovo.

First, however, let us recall NATO’s role in this war. In Russian propaganda now, Moscow is characterising this as NATO’s war. The Kremlin suggests that the Government in Kyiv is a puppet and that NATO is pulling the strings, but that could not be further from the truth. The provision of arms by Ukraine’s partners, such as the UK, is often a reactive response to requests for support. I give credit to the British Government and credit to the Secretary of State for Defence and the Ministry of Defence for repeatedly stating that this is Ukraine’s war. Ukraine is our close partner and we are supplying Ukraine with equipment and support, but contrary to Russian propaganda, this is not NATO’s war and there is no sense in which NATO is threatening Russia.

However, we are not in the business of subcontracting policy to the Government in Kyiv. We should not be answering each and every request on this reactive basis. There are times when we should be supplying equipment proactively. For example, the British Government announced they would be supplying Warrior infantry fighting vehicles when asked, though the Liberal Democrats had been calling for this in the months prior to that announcement. We should anticipate requests by Ukraine, rather than wait for them to land. The right hon. Member for Birmingham, Hodge Hill (Liam Byrne) suggested that there is a pattern of saying no until we say yes, but the UK is rightly stepping up its provision at a time when we know that our allies have moved or are ready to move.

[Liam Byrne]

We may as well try to round out the cross-party consensus that I think is emerging. Would the hon. Member agree that we should be doing everything we can to send fast jets to Ukraine?

[Richard Foord]

I suggest to the right hon. Member that if we send fast jets to Ukraine, it is going to be a symbolic gesture. When he and I visited Kyiv last September, Minister Reznikov was asking for Gripen aircraft, as we have heard in this Chamber today. If we are to do so, it would not be because we have a capability that is particularly useful to Ukraine, but because it would be a symbolic first mover gesture that others can follow.

Another example of this is the provision of main battle tanks once we knew that other countries were at least considering or almost ready to provide them, but we must have greater anticipation of what demand will arise before it takes Zelensky to visit us to make such requests.

We have heard that Ukrainian forces are firing up to 5,000 artillery rounds per day. Ukraine’s partners will struggle to maintain supply at that level from our existing stockpiles, and we are going to need to procure artillery rounds quickly. Just-in-time acquisition might play well on spreadsheets, but it has not played well in relation to our inventories.

There are times when matters of supply really are crucial. Britain found itself short of high explosive rounds in 1915. David Lloyd George was appointed the inaugural Minister for Munitions—a position that, when he became Prime Minister, he gave to his fellow Liberal Winston Churchill, who became Minister for Munitions in 1917—and the creation of a Ministry for Munitions indicated just how serious Britain was in prosecuting the war. I am not for a moment suggesting that we need to promote the Minister for Defence Procurement in such a way, but we do need to co-ordinate the purchase of munitions with our allies, given that we are drawing on the same western suppliers in many instances, and we need to do it on an enduring basis.

We see now that Russia is moving increasingly towards a total war footing, where it is increasingly mobilising the resources of its society and its economy to the war effort. It may have sought to play down the so-called special military operation last February, but it is increasingly having to recognise what it has created following the full-scale invasion. The time will eventually arrive for Ukrainian negotiation, and it should come from a position of strength for Ukraine. When the time comes for negotiation, we should be open to the leverage that Beijing will have with Moscow that NATO nations do not.

To illustrate that, recall how the orders were eventually given for the withdrawal of Yugoslav security forces from Kosovo. Yugoslavia conceded when it realised that it was isolated. If we think about the NATO bombing of Yugoslavia in the spring and summer of 1999, NATO was bombing military sites across Serbia and Montenegro in pursuit of the withdrawal of Yugoslav security forces. This followed ethnic cleansing that Yugoslav security forces had perpetrated against Kosovo Albanians. The NATO bombing campaign had gone on for more than 10 weeks, but there was no sign that Slobodan Milošević was prepared to concede and to withdraw Yugoslav military and paramilitary personnel from Kosovo.

The NATO enforcement action seemed to be stuck, and NATO bombing sorties were striking the same targets repeatedly. President Yeltsin played an important role in persuading Milošević to withdraw Yugoslav security forces from Kosovo. As Boris Yeltsin’s Balkans envoy, Viktor Chernomyrdin communicated to Milošević that Belgrade could no longer depend on diplomatic support from an ally. Chernomyrdin was later to become a dreadful Russian ambassador to Ukraine, and he is rightly very unpopular in Ukraine, but he was successful in persuading Milošević that he had no ally to whom he could turn for support. Milošević chose to consent to the withdrawal of Yugoslav security forces only when he realised just how isolated he was.

So let us not be too dismissive of China’s offer before we know what it is. Of course, we should pay careful attention to the speech by President Xi coming up on Friday. It will probably be full of platitudes, and it may offer nothing except a ceasefire based on the current possession by Russian forces of Ukrainian land, in which case it would clearly be completely unacceptable. However, the current statements made by China relate to the importance of sovereignty and territorial integrity. We are not there yet, but China may have a role to play in pressuring Russia into its eventual withdrawal from Ukraine.

We would have such a discussion while not being naive about China’s motives. Russia and China have been adversaries, so it might suit China to have Russia and the west depleting their weapons stockpiles in a conflict taking place far away from the Asian Indo-Pacific. However, it does not suit China to have the west threatening consequences against China, as Blinken has warned would result from the supply of arms by China to Russia. Russian people need to know that this is Russia’s war. It is not NATO’s war, nor is it China’s war. We in the UK do need to prepare UK defence now as if this war is our own. We must supply Ukraine so that it can capture more of its territory before it seeks to enter into a ceasefire. At that point, we should be open to recognising the value that Russia’s partners can have in persuading Putin to pull back.

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[Alex Chalk]

My hon. Friend puts the point extremely well and I cannot improve on that. He is right. Today, NATO is stronger than ever. And by the way, it is not just NATO. We should not fall into the trap of assuming it is NATO. What about Australia, which is providing support to Ukrainians? What about the New Zealand troops here in the UK who are helping to train Ukrainians? Let us not give in to that Putinesque rhetoric and narrative. This is the world community coming together. It is a fact, however, that NATO is set to grow, with the accession of Sweden and Finland. The UK alone has sanctioned almost 1,300 individuals and over 130 entities since the start of the invasion. Other countries have acted decisively, too. We have sanctioned the Wagner Group. We have sanctioned Yevgeny Prigozhin. We have sanctioned his family. We have sanctioned Dmitri Utkin. We have sanctioned Arkady Gostev, the director of the federal penitentiary service of the Russian Federation.

[Liam Byrne]

While the Minister is going through his list, would he be good enough to explain to the House why the Americans have sanctioned three times more people associated with the Wagner Group than we have? It is a simple question.

[Alex Chalk]

We have sanctioned the Wagner Group in its entirety, so there really is no place to hide. [Interruption.] Yes, we have. And there is no place to hide for those who aid, abet, counsel or procure the actions of the Wagner Group.

The UK has been amongst the foremost nations supporting Ukraine politically, militarily and with humanitarian assistance. It is worth taking a moment to consider what that support actually involves: over 100,000 rounds of ammunition and 5,000 anti-tank weapons. A point was made about armoured vehicles. The UK has provided over 200 armoured fighting vehicles, including some of the so-called dogs of war that saw service in Afghanistan: the Mastiffs, the Wolfhounds, the Ridgbacks and so on. That is what we have done, to say nothing of the winter weather gear, the Sea King helicopters and 3 million rounds of ammunition. All that we do, and more. We do it so that we send a message that might is not always right, that the international rules-based order stands up and stands for something, and that this country will meet aggression where we find it.

Last month, the Defence Secretary announced we would be sending Challenger 2 tanks and AS90 self-propelled guns. As I indicated, that comes after NLAWs, Javelins, Brimstone missiles, night-vision goggles, medical supplies, winter clothing, and search and rescue helicopters. The training for tank crews has already begun, and our armed forces are putting Ukrainian recruits through their paces in a range of crucial battlefield skills. I will just share this with the House. There are few more poignant sights than flying over the training grounds, with Ukrainian troops beneath, and seeing trenches scarred and etched into those fields of the United Kingdom. That is what this has become: trench warfare in parts of our continent.

In 2022, we trained 10,000 new troops. In 2023, we intend to double that number. As hon. Members will be aware, our armed forces will be training Ukrainian aviators to fly sophisticated NATO-standard fighters in future. We expect to begin training the first Ukrainian pilots in spring. We cannot supply the jet before we have trained the pilot and no time is being wasted in that endeavour. We have committed to match the £2.3 billion of military aid spent last year. We continue to lead the international military and diplomatic effort, too. As we saw with our tank donations, as my right hon. Friend the Member for Rayleigh and Wickford (Mr Francois) indicated, our role can be to have a force multiplier effect. We can catalyse the work of other nations. That is why the Prime Minister signed the London declaration with President Zelensky, cementing our unwavering commitment to Ukraine’s sovereignty and territorial integrity, and urging others to do the same.

There is much more I could talk about, but let me just come to this. On Friday, the nation will stand in silence to commemorate a year on from the invasion. As well as His Majesty the King sending his support to Ukraine, over 100 events will take place across Whitehall. This will be an opportunity to remember all those who have lost their lives and all those who have seen their lives irrevocably changed. It will be an opportunity to remember all those who continue to fight for their liberty. It will also be an opportunity to redouble our resolve, ensuring that when the time comes, that proud nation will build back stronger than before. That is why on 21 and 22 June the United Kingdom, jointly with Ukraine, will host the international Ukraine recovery conference.

The signal we are sending to Vladimir Putin could not be clearer. He has turned his country into a pariah and the most sanctioned nation on the planet. Meanwhile, the world stands with Ukraine, ready to support that proud and defiant country to defend its territory and its people. One year on, with Russia gearing up for a new offensive, Putin remains unrepentant. His only coherent war aims are for more war, more death and more suffering. His desperate hope is that the world will lose its nerve. It will not. Together we will defy him. Together we will prove him wrong. As President Zelensky told us in his stirring address to the House two weeks ago:

“We know freedom will win. We know Russia will lose. And we really know that victory will change the world”.

Slava Ukraini, heroyam slava.

Question put and agreed to.

Resolved,

That this House has considered the situation in Ukraine.

Oral Answers to Questions

Liam Byrne Excerpts

Tuesday 8th November 2022 Commons Chamber

[Mr Mitchell]

I thank my hon. Friend for his comments. Any allegations are deeply concerning and must be thoroughly investigated. We raise concerns with both Governments, and we can do so because relations are so close and mutually beneficial.

[Liam Byrne (Birmingham, Hodge Hill) (Lab)]

I welcome the right hon. Gentleman, my constituency neighbour, to his place. Our ability to act as human rights defenders around the world would be much stronger if we collectively hit the G20 target of lending $100 billion of the special drawing rights issued last year. To date, the UK has committed to sharing only 20% of its special drawing rights. That fraction is much lower than France and China. What is he doing to get a grip of the Government achieving the aim of sharing a much higher proportion?

[Mr Mitchell]

The right hon. Gentleman, my constituency neighbour, has raised with me privately the issue of SDRs. I agree that there is much more that the international community can do to use those SDRs for the benefit of the poorest people in the world, whom we wish to help. All I can say today is that those discussions with the Treasury are ongoing.

Prime Minister’s Meeting with Alexander Lebedev

Liam Byrne Excerpts

Thursday 7th July 2022 Commons Chamber

[Vicky Ford]

Obviously, I was not at the Liaison Committee yesterday. I was, as you may know, Mr Speaker, giving a ministerial statement on fast-tracking the ratification of Finland and Sweden joining NATO, another measure that is absolutely crucial to our safety and security here and, later in the Chamber, ensuring that we passed the funding. On the question, I repeat what I said in my opening words. It is my understanding that the Prime Minister confirmed that he had met Mr Lebedev without officials present and that he subsequently reported those meetings to officials. That is my understanding and that is what I have been told. If that is not an accurate reflection, I apologise. But this is not me misleading; that is what I was told.

[Liam Byrne (Birmingham, Hodge Hill) (Lab)]

According to intelligence reports that I have seen, a serving FSB officer reported in 2017, “Aleksandr Lebedev is considered by the FSB to be an important asset”. More recently, he has significantly expanded his businesses in occupied Crimea; pleaded with the Kremlin for economic help for occupied Crimea; and was revealed as the indirect owner of a company called Energomash, which supplies the Russian nuclear programme. How is it possible for the Prime Minister to stay in office if he is conspiring with an agent of the Russian state?

[Vicky Ford]

As the right hon. Member knows, I cannot comment on any potential future sanctions that may be introduced, because we never do that in advance. I cannot give any more comment on the particular individual that he is discussing.

The hon. Member for Rhondda (Chris Bryant) asked me to be more clear about what the Prime Minister said at the Liaison Committee. I have just been passed a note: apparently, the Prime Minister says that he thinks he mentioned this meeting to officials. [Interruption.] I am reporting what I have been told.

Strategy for International Development

Liam Byrne Excerpts

Wednesday 6th July 2022 Commons Chamber

[Sarah Champion (Rotherham) (Lab)]

Thank you, Madam Deputy Speaker. It is always a pleasure to serve under your guidance. I also wish to thank the Backbench Business Committee for granting this debate on the spending of the Foreign, Commonwealth and Development Office on the strategy for international development.

A year ago, I stood in this Chamber to open an estimates day debate on the FCDO’s main estimate. At that point, the Department had recently changed the format of its spending plans, which made scrutiny incredibly difficult. I wish to take this opportunity to thank FCDO officials who have worked with House of Commons staff over the past year to restore and improve the quality of information available in the estimate, allowing my Committee and Members to fulfil their crucial role in holding the Government to account for how they spend their aid.

Much has changed since I made that speech last year, but one in 10 people around the world are still living in extreme poverty. That simply cannot be right. Today, I wish to reflect on the enormous potential that lies within the poorest communities in the world and on how the UK Government’s aid spending should seek to develop that potential, transforming lives and creating a fairer, more inclusive world for all.

In the past few weeks, we have finally seen the Government release their new international development strategy. Combined with this main estimate, the approach signals a new era in how the UK spends its development funding, but I am simply not convinced that this approach will help the very poorest people in the world. It is clear that the Government’s priorities are increasingly about trade, security and creating British jobs, but the legally mandated objective of UK aid spending is to reduce poverty. That must remain front and centre.

The Government’s plans described a more hard-nosed, investment-driven approach to UK official development assistance. Capital investment expenditure—spending that is used, for example, on infrastructure projects—has increased by 49% compared with the last financial year, but relative day-to-day spending, from which traditional aid programmes would typically be funded, has increased by only 8.5%.

Investment partnerships are becoming a more dominant feature of UK aid. British International Investment will receive a further £200 million in capital from the FCDO, and the amount of funding channelled through BII is set to increase dramatically over the next two years. Economic and investment-led development certainly has a place in any coherent development strategy, but it tends to benefit those who are engaged, or are able to engage, with the formal labour market. I am not convinced that this approach will help the poorest and most marginalised groups around the world. I am just not convinced that it will help them to achieve their potential or create long-lasting development in their communities.

Putting all of the UK’s development eggs in the economic basket will mean that swathes of people are left behind: disabled people, minorities, and women and girls. How does the FCDO’s approach help them to reach their potential and enrich their communities? I have no doubt that UK investments can fund and support some truly transformative projects. However, we need to get the basics right first, otherwise how will those projects succeed?

Investing in new roads does not help a girl who cannot access clean water. A new telecoms network is not much use to a boy who cannot get vital vaccines. We need basic support in place first, before those investments can succeed. Get the foundations right, and then development will flourish. Under DFID, it was clear how UK aid was working towards the attainment of the UN sustainable development goals—the map to lifting people out of poverty and keeping them out of it—but this strategy barely refers to the SDGs.

It is hard to know whether we are on the right path to development without the map that the SDGs provide. With the integration of development and wider foreign policy objectives, helping the poor increasingly seems to be seen as a by-product of British foreign policy, rather than an end in itself. In fact, this Government strategy has no qualms about UK aid being “overtly geopolitical”. The strategy seeks to actively draw lower income countries away from the influence of authoritarian regimes, and to promote freedom and democracy around the world.

However, what about the communities living in countries that are not a pressing priority for achieving a foreign policy aim, or whose Governments do not share UK objectives? Are we leaving those communities behind? What happens to their potential? In my Committee’s work, we have heard that different types of development problems require different approaches. Sometimes spending through bilateral programmes is effective, and sometimes putting funds through multilaterals—such as Gavi, the Vaccine Alliance, or the World Food Programme—is more effective. We need to use the right tools for the job.

The UK is stepping back from its commitment to multilateral co-operation and placing more emphasis on bilateral spending. The Foreign Secretary told my Committee that, in 2022-23, £3.7 billion of UK aid funding will be spent through multilaterals. By 2024-25, it will be £2.4 billion—a 35% reduction in just two years. The UK’s contribution to major multilateral institutions means that we generate goodwill and we also have a huge influence over the way global institutions spend tens of billions of dollars each year.

Our multilateral investments are also a lever in investments from elsewhere, meaning that they have a multiplier effect, but the UK will be reducing its contribution to the World Bank by an astonishing 54%. If the UK is looking to increase its influence on the global stage, it seems counter-intuitive to step away from that leadership role.

[Liam Byrne (Birmingham, Hodge Hill) (Lab)]

I am grateful to the Chair of the Select Committee, who is making a brilliant speech. Does she agree that it is in Britain’s interests to use multilateral institutions, rather than to simply donate bilaterally, because that multiplies the impact that we can have?

[Sarah Champion]

My right hon. Friend is absolutely correct. At a time of such international uncertainty, a policy of giving away influence and friendships that have taken decades, if not centuries, to build up seems a very strange way to further the interests of this country, let alone the poorest in the world.

--- Later in debate ---

[Mr Andrew Mitchell (Sutton Coldfield) (Con)]

It is wonderful not to be on a four-minute time limit for a debate as important as this. I draw the House’s attention to my interests as set out in the Register of Members’ Financial Interests.

The Foreign Secretary has inherited a complete mess on development, and I have great sympathy for her in trying to bring some order to things. We are, of course, still spending a very substantial sum on ODA as part of our development budget. However, that sum has reduced from 0.7% to 0.5%, and I want to say a word or two about that.

If someone was looking for the least good time to reduce this expenditure, they would definitely have chosen the date and the day upon which the Prime Minister made that decision. It was in the foothills of Britain chairing the G7 and at the time of an international global pandemic. Development leadership was really needed, and Britain was in a position to provide it. Britain was acknowledged around the world as an international development superpower and was really in a position to move the dial on these things. But what happened? The Prime Minister reduced ODA from 0.7% to 0.5%, at the very time when British leadership was really needed. Of course, the Prime Minister had also dismantled the Department for International Development, and I will come on to that in a moment, but the point I am seeking to make is that, at a time when Britain could have given real leadership—in one of the few areas where it is acknowledged, post empire, that we are a superpower and have real leadership and skills to impart—the money was reduced.

Following the pandemic, we see the scourge of famine affecting parts of our world such as the horn of Africa and all the way down the rest of the eastern side of Africa. The right hon. Member for Leeds Central (Hilary Benn), who is a former Secretary of State for International Development, will remember the acute leadership that DFID gave, leading other countries to stop famines and starvation in the horn of Africa. That skill has never been more needed than it is today, as we stand before a real threat to people’s lives and livelihoods, but Britain is not in a position to give that leadership.

I will make two further points on the money. I do not think I will carry the Chair of the Select Committee with me here, although I pay tribute to her leadership of her Committee and the very good work that the Committee is doing, but my advice to the Foreign Secretary, given the complete mess on Britain’s development policy, was to find the money from the multilateral programmes and not from the bilateral programmes. If she is forced to make that decision, a decision she should never have had to make, it is clearly right to take the money from the multilateral programmes, for the same reason that Bonnie and Clyde robbed banks: that is where the money is.

The big multilateral programmes such as the World Bank are where the money is, and the Foreign Secretary is therefore in my view right to take it from there, but that is not a decision she should have had to make.

[Liam Byrne]

rose—

[Mr Mitchell]

The effects of taking money from the World Bank are very severe, as I suspect my friend the right hon. Member for Birmingham, Hodge Hill (Liam Byrne) is about to make clear.

[Liam Byrne]

I am grateful to the right hon. Gentleman, my neighbour, but I disagree with him on this point. With the International Monetary Fund, for example, where we have collectively issued $650 billion of special drawing rights, it would have been sensible for the UK to have stepped up and provided some leadership, sharing a much bigger fraction of the £19 billion we have been given. That would have encouraged the rest of the G7 to follow suit, and the G7 is about one third of the SDR issuance.

[Mr Mitchell]

On that point I completely agree with the right hon. Gentleman. Although I do not want to put words into the Minister’s mouth, I suspect that the Foreign Office wanted to do precisely as the right hon. Gentleman has described, but the Treasury made it extremely difficult. My point is that the savage cuts made to the bilateral programmes, where food was literally removed from the plates of starving children in Yemen, show why, in the end, if the Foreign Secretary is forced to make such decisions, she is right to take the money out of the multilateral programme.

While I am on the subject, Britain has had a leadership role within the Global Fund, along with the Americans. After 2010, we made a number of substantive changes to make the Global Fund better. It is extremely good spending, for reasons that the Minister will be well aware of, and I urge the Government to ensure that we are as generous as possible on the replenishment of the fund, not least because the Americans have made it clear that they will be even more generous than they are already being if other countries put their money where their mouth is. There is a real incentive of getting far more bang for the British taxpayer’s buck in helping with the replenishment of the Global Fund.

My other point about the money, and again I hope the Chair of the Select Committee will forgive me for making it, is that I do not believe it is sensible to go in one year from 0.5% to 0.7%. The Chancellor has already committed to bringing back the 0.7% in two years’ time. The year before that, he should go to 0.6%. I say that for two reasons.

There is quite a lot of money involved, and although there is no doubt we could spend it well through the multilateral system, I do not think the British taxpayer would believe that such a big uplift in one year could guarantee that the money was really well spent, and I do not want to test their patience on this. I want to make sure that we can look the British taxpayer in the eye and say that, for every pound of their hard-earned money that we spend on international development, we are delivering 100p of value on the ground. I urge Treasury Ministers to consider bringing back the 0.6% next year and the 0.7% the year after, and not doing it in one lump, which I believe is the current plan.

--- Later in debate ---

[Liam Byrne (Birmingham, Hodge Hill) (Lab)]

Let me declare my interest, at the outset of this debate, as the chair of the international parliamentary network on the World Bank and the International Monetary Fund. I congratulate the Chair of the Select Committee, my hon. Friend the Member for Rotherham (Sarah Champion), on bringing this debate to the House. Her timing, as ever, is impeccable. All of us here in this Chamber are watching the disintegration of the Government in real time, so in a way this debate is important because it is taking place at a hyphen moment between an Administration that are biting the dust and the construction of the new Administration that will no doubt take shape over the days and weeks to come. Like everyone who has spoken in this debate, I very much hope that the new Administration will look hard at the arguments we have made today and seek to reverse the appalling policy, the appalling cut and the appalling breach of trust represented by the slash in our aid budget.

I want to supply three thoughts for today’s debate. The first is that at the heart of it is the simple truth that when the world needed us to step up, we stepped back. We stepped away from our obligations, we stepped away from our duties and we stepped away from our promises. Those promises were enshrined when we signed up to SDG2 and made a commitment to end hunger. Not only has breaking our promise to help to supply the finance for that destroyed trust in our country around the world, but people will die this year as a result of that broken promise.

Many people here today have said that that decision could not have come at a worse time. The right hon. Member for Sutton Coldfield (Mr Mitchell) was among those who made that point, and he is absolutely right. We now have a crisis of food, fragility and finance that means that 200 million people around the world are facing a food emergency. We know that 60% of workers are still not earning what they did before the covid crisis, but we now have millions of people living almost in famine conditions and 200 million people who will face famine later this year unless things change. Things will change over the course of this year, but they will change for the worse.

Just a week or two ago, I was with the Foreign Affairs Committee in New York and we were privileged to see the NATO Secretary-General. He is fighting tooth and nail for the deal to try to get tens of millions of tonnes of grain out of Ukraine and Russia and, crucially, tens of millions of tonnes of fertiliser out of Russia. If we fail in that task, the spike in food prices that we have seen over the last year will get worse. Even more seriously, if we do not get the fertiliser out in the next few months, we will jeopardise not just the wheat harvest for next year but the rice harvest for next year. We will begin to see up to 1 billion people face a food crisis if we do not make progress on that deal. People were already in a bad position because of covid, and they are in a bad position because of inflation, but it has now deteriorated substantially because of the crisis in Ukraine.

Governments around the world are out of headroom on taking the fiscal measures needed to alleviate this coming crisis. More and more developing countries now denominate their debt in dollars rather than domestic currency, which means they are super-exposed to rising interest rates in the United States. Average interest rates on lower-income debt are up by about 77 basis points this year, and we now know that something like 12 countries around the world are already on the brink of debt distress. We already see unrest in some countries in Africa, and we see the consequences of the debt crisis in Sri Lanka. Things will become far worse this year unless we get our act together.

Of course, the problem is most acute in countries that are fragile and where there is violence. Frankly, countries and agencies such as Russia and the Wagner Group are already perpetrating barbaric human rights abuses in Mali, Libya, Syria and another 18 countries around the world. This crisis of food fragility and finance will not sort itself out, which is precisely why this is such an appalling time for the Government to make their aid cut.

My second point is a particular interest of mine, which is that the Government’s negligence is all the worse because they are not using the new tools they have been given. Last year, under Kristalina Georgieva’s leadership of the International Monetary Fund, the global community took the collective decision to mint $650 billion-worth of special drawing rights. Overwhelmingly because of the quota system, those special drawing rights go to richer countries like us. In fact, the special drawing rights coming to G7 countries total about $196 billion, which is about a third of the special drawing rights that have been issued.

Where are those special drawing rights? Where is the deployment of that resource to tackle this crisis of food fragility and finance? Right now, those SDRs are gathering dust in the vaults of central banks and treasuries around the world. They are just sitting there. We have failed to mobilise that resource in the way we promised when we signed off on the commitment to issue the special drawing rights in the first place.

The UK is a big shareholder that helped to found the International Monetary Fund, so we have been given £19 billion of special drawing rights. We have made commitments to share back about 20%. Why is 20% the magic number? We have just been given £19 billion. This is a slightly technical issue, but our SDRs go into something called the exchange equalisation account, which was set up in 1979 and underpins currency stability in this country. It has been restocked with £74 billion over the last 10 years to a level that the Treasury deems to be capital adequate, about £154 billion or $185 billion in total.

We have restocked the exchange equalisation account and then, from left field, comes another £19 billion that we did not forecast and that we do not need because we have already restocked the account. Why have we suddenly decided to share just 20% of it? There is no logic for that percentage.

The Government have so much grip on this topic that, when I asked the Foreign Secretary at last week’s Foreign Affairs Committee how much had actually come in through the special drawing rights, she did not know. She literally did not know that Her Majesty’s Government had just been handed £19 billion, which is twice the aid budget. I then prosecuted the argument and asked, “What is your target for sharing? How much are we supposed to share back?” She answered, “I don’t know.” I asked the Prime Minister the same question this week, and he did not know either. They could perhaps be forgiven if the numbers were not so big and if the crisis were not so serious, but this is absolutely crazy. We have a global crisis and the Government are simply not in control. They do not have a grip on sharing back and rechannelling some of the biggest assets and resources available to us.

The point about multilateralism, which my right hon. Friend the Member for Leeds Central (Hilary Benn) and my hon. Friend the Member for Rotherham (Sarah Champion) mentioned, is fundamental. Last week’s G7 communiqué made a very clear statement that G7 leaders want to step up the mobilisation of $100 billion, but the truth is that, of the G7 countries, we have made a commitment, Japan has made a commitment and the French have made a commitment. Congress has blocked the President of the United States sharing $21 billion, and we do not yet have information from the IMF on the others—I checked yesterday. So we are miles away from mobilising the $100 billion that was promised at the G7, and people are going to starve this year unless we get a grip. So my call on the Government today is to give us a good explanation for why we should not be sharing three quarters of the special drawing rights we have been given; why we are not leading a global effort to get to that $100 billion target; and why we are not insisting on more flexibility, such as giving the SDRs to multilateral development banks, such as the African Development Bank, which could be making such an impact on the ground. We need to be saying to the IMF that countries do not need to participate in a conditionality programme with the IMF in order to receive some of this money. I discussed that with the Secretary-General of the UN and we both agree on it. We are not going to lead the mobilisation of this effort if the politicians in charge at the helm are, frankly, in such a shambolic state. So my message to the Minister and the new Administration is: please get a grip of this enormous new resource that we have been given.

My final point is, in part, inspired by what my neighbour the right hon. Member for Sutton Coldfield (Mr Mitchell) said about China. For some years now, we have been having a debate in this country and among our allies about the influence of China and this vexed, significant issue of debt diplomacy. If we look at the countries that did not support the UN resolution on Russia, we see that, on average, they owe five times more debt to China than the countries that supported the resolution. As for whether that is a coincidence, you be the judge. The point is that the debt in many of these countries is about to fall over and the G20 common framework process, which we have held up as the great saviour of debt sustainability, has been so successful that precisely zero countries have engaged in it. So it ain’t working and we need a different approach. We could be restructuring developing country debt using IMF and World Bank resources. The World Bank has just committed $170 billion to an emergency programme that we could be using to restructure the debt of vulnerable countries around the world—right now we are simply not doing that. If we do not want to live in a world where China is the lender of last resort to countries around the world, let us use the Bretton Woods institutions that we set up in 1944 to avoid that dilemma.

In the midst of a big war, in 1941, the Atlantic charter was signed, and its story is extraordinary. Our Prime Minister at the time, Mr Churchill, was on the other side of the Atlantic with President Roosevelt and the draft of the charter was sent to Downing Street. Clement Attlee was in the Chair and he convened the Cabinet at two o’clock in the morning in order to review the draft and make one vital change. He added article 5, which said that one of our war aims would be that the victors would

“desire to bring about the fullest collaboration between all nations in the economic field with the object of securing, for all, improved labor standards, economic advancement, and social security”.

Three years later, at Bretton Woods, President Roosevelt, welcomed delegates from 44 countries from around the world with these words:

“the economic health of every country is a proper matter of concern to all its neighbors, near and distant.”

As we begin to think about what the new world looks like, those are wise words to guide us.

--- Later in debate ---

[Vicky Ford]

I will try to address some of the comments. I will come to global health budgets, which my right hon. Friend raised.

The global pandemic was in nobody’s manifesto. We faced the worst economic contraction for more than 300 years. Our borrowing in 2021 was the highest that it has ever been outside wartime. It was a really difficult decision to reduce the ODA spend from 0.7% to 0.5%, but it is a temporary reduction and we are still the third-largest donor in the G7 as a percentage of GNI that we spend. We are committed to returning to 0.7% as soon as the fiscal situation allows, and we have set out the way in which that will be measured.

Looking at the next decade and beyond, the international development strategy recognises that the evolving development landscape is characterised by many major global challenges and shifting geopolitics. For many years, increasing openness, free markets, free trade and shared technology have helped to underpin global development progress, and that is important in being able to make sure that those in the developing world can try to access some of the opportunities we have. However, that whole era of progress has been completely challenged and set back by the new geopolitical context demonstrated by Putin’s illegal, unjustifiable and brutal invasion of Ukraine, which is causing these huge spirals in fertiliser, food and fuel prices.

My hon. Friend the Member for West Worcestershire (Harriett Baldwin) was absolutely spot-on when she spoke about Russian misinformation. It is really important to remind ourselves as well as others that the UK sanctions in place are not preventing exports of Russian grain and fertiliser to third countries. It is Russia’s illegal blockade that is preventing Ukrainian grain from leaving the country, and that is what is hurting global supplies. The economic pain hitting the world’s poorest most acutely is being caused by Putin’s aggression.

The new hon. Member for Tiverton and Honiton (Richard Foord), in his maiden speech, quite rightly spoke about reminding everybody of the importance of the Budapest convention, when Ukraine gave up what I believe was the world’s largest collection of nuclear weapons in return for the promise that Russia, as well as others, would respect its territorial integrity. We absolutely stand by the people of Ukraine in many ways. We are one of the leading bilateral donors. We have committed about £400 million in economic and humanitarian grant support, which is in addition to about £800 million in guarantees on World Bank lending to Ukraine. We are using a lot of guarantees to increase the amount of funding we can make available.

The right hon. Member for Leeds Central (Hilary Benn) asked whether we are adhering to international laws and what constitutes ODA, and I am very pleased to say that we are. The rules are set out by the OECD’s development assistance committee, and the DAC definition of ODA makes it very clear that no military equipment or services are reportable as ODA, so I hope that answers his question.

My hon. Friend the Member for West Worcestershire mentioned the importance of making sure that UK branding is included in what we are doing, so that while we are supporting developing countries, people know that the UK is standing beside them. I absolutely agree with that, and I would also say to Members in this House who care so passionately about international development that it is important that they remind people what good work is done with the money the UK taxpayer spends there.

I have attended the World Bank meeting—we do attend these meetings, and I regularly attend international meetings—and encouraged the World Bank to be giving a clearer message about the support it is giving and reminding those in donor countries how important this is.

[Liam Byrne]

The World Bank has just mobilised $170 billion of emergency response to the current crisis, but the first question everybody I have spoken to in the World Bank over the last year is: why on earth has the UK cut its commitment to the World Bank when we could be using that to mobilise more money in the future?

[Vicky Ford]

I am so glad that the right hon. Member has raised this point because the UK remains one of the top six largest shareholders of the World Bank. We are one of only six countries in the world that has its own voice at the World Bank spring and autumn meetings, and we use that very powerfully. We remain the third largest donor to IDA20 and we remain the fifth largest shareholder. We reduced our donations to IDA, bringing them in line with what we are doing elsewhere in the world through the international development strategy, but we remained the third largest donor. Indeed, the World Bank announced that it would release $170 billion at the spring meetings partly because the UK worked with our partners to say to the World Bank, “We are in unprecedented times and we need an unprecedented package.”

My right hon. Friend the Member for Sutton Coldfield (Mr Mitchell) raised in his excellent remarks the situation in the horn of Africa, which is absolutely dire. The UK was one of the first to step up. In January, I was in the horn of Africa and announced additional money, which was, as the hon. Member for Dundee West said, especially to help babies, children and feeding mothers. Since then, we have helped to convene an international conference and worked with the UN to have a roundtable that raised another $400 million. We will be putting more than £150 million of humanitarian aid into east Africa this year. To follow up the question from the right hon. Member for Birmingham, Hodge Hill (Liam Byrne) about the World Bank, we have been encouraging it to put some of that $170 billion urgently into the horn of Africa.

[Liam Byrne]

rose—

[Vicky Ford]

I will make some more progress, because I want to answer many other questions.

Major global challenges are threatening the progress made over previous years. We had seen progress, especially in the last decade, but that has reversed in the last two years, which is partly to do with covid and partly to do with climate change. In that context, it is really important that our international development strategy provides a clear framework to enable people and countries to take control of the future.

Yes, a priority of the strategy is to deliver reliable investments through British investment partnerships, building on the UK’s financial expertise and the strength of the City of London. That is a way in which we can help, using Government—taxpayers’— money to bring more money into developing countries. That must be done in a way that also delivers on green priorities and supports countries to grow their economies sustainably. A key aspect of that is helping countries with the lowest incomes to build their trade capacity and infrastructure. That is not about putting all of our funding in the trade basket; it is about looking at ways in which we can harness investment to make a real difference for countries.

For example, I was in Sierra Leone earlier this year—I have visited 14 African countries since I took on this role, and Sierra Leone is one of those that most needs international development assistance—and one project that I saw was a solar microgrid. We have 95 of them going up across the country, and they are helping more than 300,000 people to get access to electricity. That means that kids can do their school work in the evening, that a sole trader can run her business and get herself an income and livelihood and, most importantly, that local services can get access to electricity. In the same town, I visited the women’s health clinic that we helped set up, where we have worked on training for those delivering babies and on bringing in oxygen services, blood bank services and electricity. That has reduced maternal deaths from one in 25—one in 25 women having a baby was dying—to one in 250. Putting infrastructure investment into that microgrid enabled the oxygen services and blood to be kept in the fridge. That helped to save lives and meant that lights were on when women were delivering their babies at night. As all of us who are mothers know, many women choose to have their babies at night—I have gone slightly off my speech.

Another priority is to empower women and girls. We want to tackle the social, economic and political structural barriers that hold them back, and unlock their potential. Indeed, restoring the funding for women and girls has been a key priority for the Foreign Secretary. I cannot put back the money that was not restored last year, so, in answer to the hon. Member for Putney (Fleur Anderson), the funding is being restored going forward, and it does include areas such as sexual and reproductive health and rights. I believe that that is absolutely central to women’s and girls’ fundamental right to have control over their lives and bodies.

--- Later in debate ---

[Vicky Ford]

Let me try to address hon. Members’ questions first, because I have only another few minutes and Members have been sitting here throughout the debate.

I thank my hon. Friend the Member for Mid Derbyshire (Mrs Latham) for her passionate discussion of neglected diseases, including podoconiosis, which she now knows is a new one to me. What she said was very moving, and I will look into it further—what she said was very moving—and I reassure her that we are reviewing the Global Fund seventh replenishment investment case. I hope that that gives her the confidence she needs.

Our development priorities will be achieved by taking a patient approach to development. That means unlocking the power of people, ideas and institutions and tackling the causes of crisis, as that is the basis for delivering lasting growth, stability and poverty reduction. This is about getting the system to work.

Alongside ODA, we harness trade, defence, diplomacy and other UK strengths to work for lasting policy change in partner countries. We spend more of our budget directly. By 2025, the FCDO intends to spend about three quarters of the funding allocated in the current spending review through country programmes. That does not mean turning our back on multilateral partners. We will maintain a wide range of partnerships with multilateral organisations. They remain key partners for achieving shared objectives and tackling global challenges that the UK alone cannot solve. Geographically, we maintain our commitment to Africa, while we continue to focus on the Indo-Pacific, including by expanding the work of British International Investment in the region.

On the commitment to Africa, we are committed to building partnerships with African countries, leading to a freer, safer, more prosperous, healthier and greener continent. We prioritise key strategic partners such as South Africa, Nigeria, Ethiopia, Kenya and Ghana. We will target how we spend resources in fragile states or countries that need extra support, and we partner with the African Union when we see that our interests align and add value.

One of the questions from the Liberal Democrat spokesperson, the hon. Member for Oxford West and Abingdon (Layla Moran), was about Ethiopia. In the last financial year, we spent roughly £240 million of ODA in Ethiopia. That is about 7% of the entire UK spend. Ethiopia is a very important country. It is a very fragile state, particularly with famine in the south and conflict in the north. We have consistently called on all parties to work towards the ceasefire, which remains very fragile. Aid is flowing. It is not enough, but large proportions of the aid that is flowing is going on trucks that have been bought with UK aid, because we are one of the key contributors in that area.

[Liam Byrne]

I hope that the Minister may come on to not just the £10 billion of the aid budget, but the Government’s strategy on the £19 billion of special drawing rights.

[Vicky Ford]

Let me come to the special drawing rights; I was about to go through more of the specific questions that Members asked. We have committed to channelling up to £4 billion of our special drawing rights. The first £1 billion has already been committed as additional funding to the IMF’s poverty reduction and growth trust. In addition, the Chancellor made a commitment in April this year to allocate another £2.5 billion to the new IMF resilience and sustainability trust. That fills a crucial gap in the IMF’s toolkit. It provides affordable financing to low-income and vulnerable middle-income countries to address long-term challenges.

At the African Development Bank meetings that I attended in Ghana this year, I also explained that I was very keen to channel some of our SDRs through the ADB. Technically, the money does not come to us—it remains a shareholding in the bank. We cannot do that by ourselves; we have to do it collectively with some of the other owners of SDRs. I say that just to update the right hon. Gentleman that we are working on the matter. There are some technical issues as well.

[Liam Byrne]

Will the Minister give way?

[Vicky Ford]

No, because I want to get on to some of the right hon. Gentleman’s other points.

On ICAI, the budget is not actually reduced; it was to be a flat budget. In line with the framework agreement, we will consult with the International Development Committee if any changes to ICAI’s budget will have a significant impact on the Committee’s work plan. With ICAI, we will also work through whatever funding gap it may have, to understand what the impact could be.

Northern Ireland Protocol Bill

Liam Byrne Excerpts

2nd reading
Monday 27th June 2022 Commons Chamber

[Mr Lammy]

I accept the sincerity with which the hon. Gentleman makes his remarks. Let me just say that they have said that trust is at an all-time low. The question for this House is whether the Bill maintains or assists trust, given that ultimately this will be an agreement and it will be negotiated.

[Liam Byrne (Birmingham, Hodge Hill) (Lab)]

My right hon. Friend is making a brilliant speech. Is he aware of comments by the US trade representative Ambassador Tai, from Speaker Pelosi and indeed from a host of our American allies in Congress? They have been very clear with us that there will be no US-UK trade deal unless there is a durable way forward on the Northern Ireland question. Not only does this reckless approach risk destroying relations with the EU, but it puts a deal with America at risk.

[Mr Lammy]

My right hon. Friend is exactly right. I have been to Washington on three occasions in the past six months, and I can say that across the political divide, Republicans and Democrats have raised the issue. On my most recent visit, they were aghast; they had not seen the content of the Bill at that stage, but they were aghast at the proposition. Perhaps the Northern Ireland Secretary might tell us what our American friends and allies have said in relation to the Bill now that they have seen the draft.

My second question is whether the Bill is in the best interests of this country. As we stand here today, Britain faces the worst cost of living crisis in decades. Inflation is at more than 9%, bills are rising, energy costs are soaring and supply chains are under pressure. It beggars belief why, at this time, the Government would choose to risk new frictions in our trading relations with the EU. They cannot get away with abdicating responsibility for this reckless conduct. If we choose to break a contract, we cannot plausibly expect the other side to take no action in response. We cannot claim that we did not foresee the consequences. Of course the European Union would respond, just as we would if the situation were reversed. I will wager that the Foreign Secretary would be one of the first people to complain if the boot were on the other foot.

A game of brinkmanship with the European Union will only add to our economic problems, but this is not just about economic concerns, important though they are. We must also see the bigger picture. For four months, the Putin regime has fought a bloody war against Ukraine. As a Parliament, we have been united in our support for Ukraine and our staunch opposition to Russia’s aggression. NATO allies and European partners have stood together. How can this be the right moment to deepen a diplomatic row? How can this be the right time to tell our friends and partners that we cannot be relied on? I cannot help noting that some Conservative Members told us that the situation in Ukraine was too serious—that this was not the right time to change Prime Minister. Apparently, however, it is not serious enough to prevent us from starting a diplomatic fight with some of our closest allies.

Thirdly, is the Bill compatible with international law? [Hon. Members: “ Yes.”] Quite simply, the Bill breaks international law. It provides for a wholesale rewrite of an international treaty in domestic law. One of the most troubling aspects is the dangerous legal distortion that is used to justify it. The doctrine of necessity is not an excuse for states to abandon their obligations. It exists to do precisely the opposite: to constrain the circumstances in which states can legitimately claim that their hand has been forced. It requires this action to be the “only way” possible to resolve the issue, but the Government have not used article 16 and still say that a negotiated solution is possible. It requires a grave and imminent peril, but the Government have chosen a route that will involve months of parliamentary wrangling to fix issues such as unequal VAT rates, which no reasonable person could consider a matter of grave peril. It requires the invoking state not to have contributed to the situation of necessity, but the problems are a direct result of the choices that the Government made when negotiating with the European Union. If they were not, we would not need to change the text of the protocol at all.

Sanctions

Liam Byrne Excerpts

Monday 28th February 2022 Commons Chamber

[Elizabeth Truss]

We have seen the acts of incredible bravery from the Ukrainian population and Ukrainian politicians, including President Zelensky, who has led from the front. It is absolutely inspiring. Our message across the House today should be that however long it takes, however difficult it is and whatever difficulties we have economically, they cannot compare to the sheer hell that the people of Ukraine are going through. We will be with them through thick and thin, until Putin loses and until the sovereignty and territorial integrity of Ukraine are restored.

[Liam Byrne (Birmingham, Hodge Hill) (Lab)]

The whole House will welcome the Foreign Secretary’s ambition this afternoon, but can we speed up the process of hitting the people on the hit list? There are 23 people on the EU sanctions list who are not on the UK sanctions list as of this morning. The ban on trading in state bonds is in place in Europe, but not in the UK. The ban on import and export from breakaway regions is in place in Europe, but not in the UK. The asset freeze and travel ban on Duma members is in place in Europe, but not in the UK. The asset freeze and travel bans in place in Europe number 22, but there are just eight in the UK announced in the past few days. What further power and resources does the Foreign Secretary need for us to catch up with our American and European allies?

[Elizabeth Truss]

We are leading from the front. For example, we are banning clearing from Sberbank, which the EU is not doing at the moment. We are freezing more bank assets. We have advocated the SWIFT ban, and we want to get all our allies to agree to a SWIFT ban, but this is not a competition between us and our allies; this is a concerted endeavour, where all of us are doing all we can as quickly as we can to show unity and to deliver a massive hit to the Russian economy. The House will have seen the drop in the rouble today, and the impact that this unity is having. I strongly encourage colleagues across the House to support our package, which is unprecedented in United Kingdom history, and to put pressure on more countries to join us, but there are areas where we are going a lot further than our allies. There are some areas where they have gone further than us. We need to continue to make progress together. That is what sends a strong message to Putin.

Recognition of the State of Palestine

Liam Byrne Excerpts

Thursday 24th February 2022 Commons Chamber

[Liam Byrne (Birmingham, Hodge Hill) (Lab)]

My congratulations to my hon. Friend the Member for Sunderland Central (Julie Elliott) on securing the debate, because on trial today is the complete incoherence in the Government’s approach to Palestine. Let me go through the three basic logical points in the argument.

First, do we believe that we have a moral responsibility to recognise the state of Palestine? Yes, we do. When we held the mandate between 1923 and 1948, we acknowledged a sacred trust of civilisation to prepare Palestinians for an independent country, thereby recognising the right to self-determination.

Secondly, is there now a legal responsibility and imperative to crack on with recognition? Yes, there is. In November 2011, Lord Hague said that Palestine met the criteria for statehood. In 2014, the House voted for recognition by 274 votes to 12. In October 2014, the Foreign Office said again that there should be a two-state solution on 1967 boundaries with East Jerusalem as a shared capital.

Thirdly, we recognise the moral responsibility and we recognise the legal responsibility to crack on. Do we now think that peace and a two-state solution is in jeopardy? Yes, we do. There are now 650,000 settlers breaking up the occupied territories. The threat is explicitly recognised by the UN Security Council in resolution 2334, which states that the cost of settlements is now

“a flagrant violation under international law and a major obstacle”

to peace.

Despite that moral responsibility, despite the legal urgency and despite the threat to peace, what are the Government doing? They are refusing to recognise the state of Palestine. They are pursuing a free trade agreement with Israel. They are standing by while products such as those made by JCB are destroying homes in the occupied territories. Frankly, they are not investigating the whys and wherefores of some of our arms exports.

Like many here, I have stood in Palestine and seen how the route taken by Mary and Joseph to Bethlehem is now impossible to take, because it is broken up by walls. I have heard children talk about the post-traumatic stress disorder they now suffer. I have listened to shepherds whose lives have been destroyed because they have no legal right to build a home of their own. I have listened to farmers whose water has been stolen.

Like everybody here, I deplore the attacks on Israel. I deplore the viciousness and madness of the madmen of Hamas, but I have to say to the Minister that the two-state solution is now becoming a mirage and we have to intervene now in order to act. We have to act for peace and that is why we should recognise the state of Palestine today.