Defending the UK and Allies

Debate between Nick Smith and Rishi Sunak

Monday 15th January 2024 Commons Chamber

[The Prime Minister]

Let me tell my hon. Friend that she is right and we agree with the US assessment that Iran has directly supplied and directly supported Houthi attacks in the Red sea, providing intelligence, especially to enable their targeting of vessels, and providing them with missiles and unmanned aerial vehicles. She is right to say that we should do everything we can to prevent that, and I reassure her on that. She will know about the measures we have taken over the past two years on financial transparency and beneficial ownership registers, which allow us to crack down on economic crime and money laundering. Physically, the Royal Navy is involved in interdicting shipments, as it has done successfully last year and the year before. It will continue to have a presence in the region so that we can disrupt those illegal arms flows.

[Nick Smith (Blaenau Gwent) (Lab)]

It is a critical time internationally, but we have a staffing crisis in our Navy, so can we do more to boost the recruitment of sailors by offering science, technology, engineering and maths qualifications? When will we see our Navy back up to full strength?

[The Prime Minister]

Our Royal Navy is one of the top five in the world. It is capable of operating in all the world’s oceans simultaneously and we are one of only two countries to operate fifth-generation jets from the sea, so we should be confident and proud of our Royal Navy. As I have said, we are investing in more equipment and capability going into the future. The hon. Gentleman is right to highlight some of the recruitment challenges—the Defence Secretary highlighted some of them the other week—but we are doubling down on all our initiatives to ensure that our armed forces have the staff they need for the future, and that those personnel have the equipment and supplies they need to do their jobs effectively.

Oral Answers to Questions

Debate between Nick Smith and Rishi Sunak

Wednesday 15th November 2023 Commons Chamber

[The Prime Minister]

I can assure my hon. Friend that our decision on HS2 means that every region of the country will now receive more transport investment than it would have done before, including the south-west. I am pleased that there is funding to protect the vital rail link between Exeter and Plymouth, that there will be a £2.8 billion road resurfacing fund, and that his constituents in the south-west will continue to benefit from the £2 bus fare until the end of next year. We have previously provided almost £8 million to progress the station that he mentions. I can reassure him that the Rail Minister will have heard his representations and will continue to update him on the progress being made.

[Nick Smith (Blaenau Gwent) (Lab)]

Q2. David Cameron was the well-paid public face of Lex Greensill. Greensill’s companies are facing criminal investigations in Switzerland, Germany and here in the UK. David Cameron messaged Ministers and officials 62 times over Greensill’s covid loan guarantees. The Treasury Committee called that“a significant lack of judgement”.What does his appointment say about the Prime Minister’s own judgment?

[The Prime Minister]

As the hon. Gentleman knows, the Government commissioned Nigel Boardman to review all those issues and strengthen the system following those recommendations. I am very confident that this nation will be well represented abroad by the former Prime Minister. He is a Prime Minister with unrivalled experience of foreign affairs and will help Britain to navigate an uncertain world in challenging times. In contrast, the Labour party would offer to the country a shadow Foreign Secretary who backed the Leader of the Opposition’s predecessor to be leader, was paid to appear on Russian television and even voted against Trident. Does that sound like a man who should represent Britain?

NATO Summit

Debate between Nick Smith and Rishi Sunak

Thursday 13th July 2023 Commons Chamber

[The Prime Minister]

My hon. Friend makes an excellent point. Our submariners do an extraordinary job under difficult conditions, and they deserve our gratitude for everything that they do for our country. They are the ultimate guarantor of our security and we owe them our thanks.

[Nick Smith (Blaenau Gwent) (Lab)]

Labour’s Ernie Bevin helped to found NATO, but I ask the Prime Minister: why have the Conservatives given us the smallest Army we have had for 300 years?

[The Prime Minister]

It is right that our armed forces adapt their capabilities to the threats that we face. Trying to compare the threats that we face and the capabilities that we have now with when NATO was founded is completely ridiculous. It is important now that we invest, whether that is in offensive cyber or extra maritime capabilities to deal with subsea infrastructure. The range of threats we face evolves all the time and we will continue to make sure that we are protected against them, but what no one can doubt is our commitment to investing in our armed forces, with record levels and a 2% commitment that we first met over a decade ago sustained and on a rising trajectory. This Government are committed to investing more in our defence and we will do so in a way that absolutely protects us.

COP27

Debate between Nick Smith and Rishi Sunak

Wednesday 9th November 2022 Commons Chamber

[The Prime Minister]

My hon. Friend makes an excellent point. That is the type of leadership and contribution that Britain can make to solving the problem globally. We are fortunate to have some of the world’s best researchers and companies tackling this problem. On Monday, I was pleased to announce about half a dozen investment opportunities in Kenya, which do exactly what he describes: British expertise helping a country with its transition in areas such as solar and geothermal. That is an exciting template for the future.

[Nick Smith (Blaenau Gwent) (Lab)]

Why is the Prime Minister banning onshore wind, the best renewable energy?

[The Prime Minister]

We are providing four times as much renewable electricity today as we did in 2010. We have plans to go even further as we roll out offshore wind, which is a competitive strength for the UK. We will complement that energy mix with new nuclear, a source of energy that we all recognise we need, but for which the previous Labour Government said there was no economic case at all.

Financial Services and Markets Bill

Debate between Nick Smith and Rishi Sunak

2nd reading
Wednesday 7th September 2022 Commons Chamber

[Rishi Sunak]

Not for now.

First, on Brexit, with the future regulatory framework, the Bill represents a significant move away from relying on retained EU law as a means of regulating the UK’s financial services sector. Clause 1 provides for a full sweeping away—a full revocation—of essentially all the retained EU law concerning financial services in the UK. This is radical and this is right. Indeed, it is what Brexit was all about and this Bill delivers it.

We will move appropriately to the Financial Services and Markets Act 2020 model where the Government set the overall policy approach and delegate the operational implementation of those regulations to the independent regulators. As my hon. Friend the Minister said this is the internationally respected gold standard for how to do this. I was pleased to hear the Minister comment on the call-in power, and I urge him and the Government to quickly bring forward the means for that power, because both my hon. Friend the Member for Salisbury and I believe it is the right thing to do. We talked about accountability earlier in this debate. It must be right for a democratically elected Government, with the consent of this House, on an exceptional basis, to intervene on financial regulation in the public interest, and I hope that the Government will follow through with those plans.

On what this Bill does to support competitiveness, for the first time, our financial regulators will have a new statutory objective to support international competitiveness and growth, moving us in line with jurisdictions such as Australia, Singapore, Japan and Hong Kong. There will be new statutory panels to give better external scrutiny and challenge on the regulators’ cost benefit analyses. We heard much about the Markets in Financial Instruments Directive over the past several weeks and I am pleased that the Bill brings forward those reforms to MiFID: to remove restrictions such as the double volume cap when trading in wholesale capital markets to improve pricing for investors; to modify the transparency regime in fixed income and derivatives to remove unnecessary burdens; and to modify the commodities position limits so that market activity is not unreasonably restricted.

There are three areas on which I urge the Government to consider going further than I think we heard in the Minister’s opening remarks. First, to improve the efficiency of capital markets raising, there is an opportunity to reform European regulations in the prospectus directive. I hope the Government will bring forward draft statutory instruments for us to consider during the Bill’s passage. Secondly, the European packaged retail and insurance-based investment products directive is ripe for reform. I suggest repealing PRIIPS and replacing it with a tailor-made regime specifically for UK markets. This will eliminate a counterproductive regulation, broaden the range of products available for UK investors and, indeed, increase UK retail participation in our financial markets.

[Nick Smith (Blaenau Gwent) (Lab)]

Does the right hon. Gentleman think that the Bill sufficiently challenges the Financial Conduct Authority to speak up and support consumers?

[Rishi Sunak]

Yes, I do: the Minister touched on provisions that increase consumer protection. My hon. Friend the Member for Salisbury spent a lot of time ensuring that consumers would have that protection, particularly with regard to scams, as the Minister outlined in his opening remarks. That is an area that needs attention.

Thirdly, on ringfencing, I suggest that the Government not only accept the recommendations of the independent Skeoch review, but consider going further. I know that this is a Government with a deregulatory zeal for growth, so I suggest two areas in particular: first, to review the threshold limits, which have not been looked at since they were initiated; and secondly, to take a fundamental look at the ringfencing regime in light of the fact that it was established after the financial crisis and that we now have a full stand-alone resolution regime.

It is worth recalling that more than half of Europe’s fintech unicorns are based in the United Kingdom, so it is important that the Bill continues to support innovation. I am pleased that it does so in two specific areas. It builds on our pioneering and world-leading regulatory sandbox to include the opportunity to pilot new sandboxes for distributed ledger technology in financial market infrastructure. That has the potential not only to lower costs and improve efficiency, but to improve financial stability. I am glad that the Government are also proceeding to bring stablecoins into the payments legislation, because that will create the conditions for stablecoins issuers and service providers to operate and grow in the UK.

I ask the Minister and the Government to consider implementing all the fantastic ideas that were contained in the speech by my hon. Friend the Member for Salisbury in April regarding blockchain and crypto, notably proceeding with a sovereign gilt issue using distributed ledger technology, but also enabling the trading of exchange-traded notes on crypto on UK exchanges, where we risk falling behind Europe if we do not act.

Why does all this matter? It matters for three specific reasons. The first is jobs. The industry provides more than 1 million jobs, and not just in London and the south-east; two-thirds of those jobs are in places such as Southampton, Chester, Bournemouth, Glasgow, Belfast, Edinburgh and Leeds. It is incredibly important. Secondly, it is one of the most important industries for our economy in terms of contribution to our GDP and tax revenues, and it is something that we as a country are genuinely world-class at. There are only a handful of industries where a country can say that, and financial services is one of those for us. It deserves the support of hon. Members on both sides of this House to ensure its continued success.

Lastly and most importantly, this Bill serves as a template for what the Government want to do across the rest of their business. It takes advantage of the opportunities of Brexit, radically reforms our regulations to support innovation, growth and investment, and, although I would like the Government to go even further, it has my full support.

Economic Update

Debate between Nick Smith and Rishi Sunak

Thursday 3rd February 2022 Commons Chamber

[Rishi Sunak]

I can give my right hon. Friend that assurance. It is absolutely right and proper that the Bank is independent of Government on matters of monetary policy. That is exactly what has always been the case over the past two years and it will continue to be the case. I can wholeheartedly give him that assurance.

[Nick Smith (Blaenau Gwent) (Lab)]

The Chancellor will be pleased that his campaign team are behind him today. Does he really think that the super-profits of $20 billion made by Shell are untouchable? His hands-off approach will not persuade many people across our country.

[Rishi Sunak]

What millions of people across this country will see today is a Government who are on their side and a Government taking action to help them with the anxiety they feel about rising energy bills. We are doing it in a proportionate, fair, targeted and responsible way to protect people not just today, but for years.

Oral Answers to Questions

Debate between Nick Smith and Rishi Sunak

Tuesday 2nd November 2021 Commons Chamber

[Rishi Sunak]

I thank my hon. Friend for the kind invitation, which he also sent me by phone. I look forward to accepting it soon and to celebrating Stoke’s success in not one, not two but three levelling-up fund bids.

[Nick Smith (Blaenau Gwent) (Lab)]

2. What recent fiscal steps he has taken to help resolve supply chain issues.

Covid-19: Economy Update

Debate between Nick Smith and Rishi Sunak

Thursday 22nd October 2020 Commons Chamber

[Rishi Sunak]

I thank my hon. Friend for his comments. Where the guidance is not clear on businesses that are legally required not to open but not legally closed and therefore do not benefit from some support, we are actively looking at that and ensuring that we can fix it. Events and exhibitions are one of the VOA categories that will be included in the hospitality and leisure calculation that we use for the tier 2 grants I have announced today. More generally, the best thing we can do is try to open up more travel and, as time progresses and we can do more testing, to get life back into that sector by allowing it to get on with what it wants to do, which is to put on a fantastic events.

[Nick Smith (Blaenau Gwent) (Lab)]

In March, the Government increased the basic allowances for both universal credit and working tax credit by £20 a week, but that uplift is only temporary; it will expire next April. Does the Chancellor accept that, after what we all expect to be a tough winter ahead, that will mean taking nearly £1,000 a year away from those families who really need it?

[Rishi Sunak]

We did put in place the temporary uplift of universal credit  but, as the hon. Gentleman says, it still has five or six months to run; it will be in place to support vulnerable families throughout the difficult winter period and is there all the way until next spring.

Economic Update

Debate between Nick Smith and Rishi Sunak

Wednesday 8th July 2020 Commons Chamber

[Rishi Sunak]

My hon. Friend is absolutely right. Those on the lowest incomes will receive grants of up to £10,000 to cover the full costs, but that is a policy that does all three things: it will create local employment in communities, which right now is what we want; it will save households money on their bills, up to £200 or £300 for typical cavity wall insulation; and it will cut carbon, with the average house installing these measures saving the equivalent carbon of a flight from London to New York. This is a policy that does what we need right now—cuts carbon, creates jobs and saves cash.

[Nick Smith (Blaenau Gwent) (Lab)]

To boost employment in Blaenau Gwent, we need to help more people get on the Ebbw Vale train to Cardiff, but the line needs to be redoubled, with improved signalling and bridging works. A business plan is in the pipeline from the Welsh Government. Will the Chancellor commit to follow through and please look at providing the investment for jobs that we need—in short, to do what is right for the people of the south Wales valleys?

[Rishi Sunak]

I am very happy to look at the proposal from the hon. Gentleman, and I am sure that the Transport Secretary is fully abreast of it. I will pick it up with him as well.

Economic Update

Debate between Nick Smith and Rishi Sunak

Tuesday 17th March 2020 Commons Chamber

[Rishi Sunak]

My right hon. Friend is right to highlight the need to provide support for businesses with their fixed costs, rather than their variable ones. That is what we need to help bridge through—the cash grants today related to rateable value, with reference directly to rent payments—but he is right that other fixed costs are people, which is why we are working up measures in that area.

[Nick Smith (Blaenau Gwent) (Lab)]

The measures in the Red Book are nowhere near enough. For families in need, can statutory sick payments be available from day one, for all workers when they are sick, and can it be set at the level of the national minimum wage?

[Rishi Sunak]

As a result of the actions of my right hon. Friend the Secretary of State for Work and Pensions, SSP is available for those who are eligible for it from day one. Regulations are being laid to that effect, and employment and support allowance will also be available from day one, rather than day eight.