Financial Services Bill

Lord Hammond of Runnymede Excerpts

2nd reading & 2nd reading (Hansard) & 2nd reading (Hansard): House of Lords
Thursday 28th January 2021 Lords Chamber

[Lord Hammond of Runnymede (Con) (Maiden Speech)]

My Lords, I draw attention to my directorship of OakNorth International and my membership of the international advisory board of Nomura, both of them banks.

It is a privilege to address your Lordships’ House for the first time. It may be only 100 yards from the other place, but it is a very different place. I am extremely grateful to the officers and staff of the House and to my supporters, my noble friends Lord Moynihan and Lord Barwell, for their welcome and assistance as I navigate the customs and practices—and indeed the corridors—of this place. I am delighted to be making this speech from the Government Benches, having momentarily mislaid the Conservative whip during the last few weeks of my 22-year career in the Commons.

The title of Lord Hammond of Runnymede may speak to the wider world of the ancient roots of our democracy and of the origins of the rule of law, but, for me, it will always recall the privilege of representing the people of Runnymede and Weybridge, sharing their problems, challenges and triumphs over more than two decades.

My Back-Bench career in the other place was short. The year 1997 was rather like the day after the battle of the Somme in the parliamentary Conservative Party. The general staff was in disarray, the officer corps decimated and new recruits like myself were being promoted in the field; thus began my 12-year apprenticeship on the Opposition Front Bench, before entering the Government in 2010, where I had the privilege to lead four great departments of state, each remarkable in its own different way.

I arrived at the Department for Transport with a single clear instruction: get HS2 built. As an immediate former shadow Chief Secretary, I approached this task with a degree of scepticism, but quickly became a convert to the potential of high-speed rail to change the facts of economic geography, as the original railway had changed Victorian England, and to play a key role in rebalancing the UK economy.

I moved on to defence in the dying days of the Libya campaign of 2011. The MoD is an extraordinary place, a military headquarters as well as a department of state. It is shaped by its unique blend of civilian and uniformed staff and the ethos of the Armed Forces that pervades it. It was an enormous privilege to work with it through a period of managed withdrawal from Afghanistan and majoring restructuring at home as we reconfigured the department and delivered a balanced Budget for the first time in a decade.

In July 2014, my next move was across the road to the grandeur of the FCO and by far the best office in Whitehall. I say to noble Lords that it is not for nothing that successive Foreign Secretaries have gone to extraordinary lengths to ensure that Prime Ministers do not enter that room. In two years as Foreign Secretary, I made 104 overseas visits to 78 countries, gaining an invaluable insight into how others see us and our contribution to their histories—for better or for worse, there are remarkably few in whose histories we have not played a role of some kind. What I learned is how much importance our many friends attach to the characteristics, structures and institutions that define our nation and of which we sometimes appear to be so careless.

In July 2016, my final move was to No. 11. As the guardian of Britain’s economic and fiscal interests, it is hardly surprising that, whatever the political arguments, the Treasury saw Brexit primarily as a threat to the UK’s economic success story. With storm clouds gathering over the economy and uncertainty rife, I set myself a four-point plan: first, to complete the rebuilding of our public finances as a bulwark against the next crisis, little guessing that the next crisis would come so soon; secondly, to soften the economic blow of exiting the single market by securing a transition period, which is uncontroversial now but was a heretical notion in the Brexit-intoxicated days of autumn 2016; thirdly, to shift the balance of public spending, albeit gently, from consumption to investment as part of a plan to unlock the productivity riddle that has bedevilled the British economy since the Second World War; and, finally, to protect our vital financial services industry, which despite the Treasury’s sometimes expansive view of its role is actually the only sector for which it has direct responsibility. That brings me neatly to the Bill.

I strongly support all the objectives that the Government have set out for the Bill, making it an ideal vehicle for a maiden speech by someone who has so recently recovered the Whip. I want to take the opportunity to note the importance of financial services not just to London but to the whole UK economy—it provides 7% of our GDP, 11% of tax revenues and millions of jobs across the length and breadth of Britain—to plead, even at this late stage, for a greater focus on it in our ongoing discussions with the EU and to suggest the inclusion of a duty on our regulators to promote competitiveness as some other countries have done. I hope that it will be the first of many measures designed to reinforce the stability and competitiveness of UK financial services as they absorb the challenge of what, for them, is a no-deal Brexit and the inevitable, albeit gradual, loss of EU business.

I enjoyed every minute of my nine years in Cabinet and I learned much from the many extraordinary people I encountered on my journey. I hope that the experience that I have gained leading four great departments of state will qualify me to contribute to your Lordships’ debates over the years to come.

Prime Minister’s Statement

Lord Hammond of Runnymede Excerpts

Saturday 19th October 2019 Commons Chamber

[The Prime Minister]

Let me first say that I am grateful to the right hon. Gentleman in this sense: together he and I, and the rest of his group, made a case powerfully to the EU that it was necessary for Northern Ireland to come out of the customs union—which was not, by the way, a point that was accepted by the EU—and we were successful in that. The right hon. Gentleman is critical of the arrangements, but the significant point about a customs union is that it is a union that sets its own tariffs and duties at the perimeter around that customs union, and that is what the whole of the UK will do, including Northern Ireland. And let us be frank, that is not what the European Commission or our European friends thought would be the result of these negotiations. I believe that it is a great success for Northern Ireland and the whole country.

The arrangements that have made that possible, of course, are temporary and determined by consent. I do think it a pity that it is thought necessary for one side or the other in the debate in Northern Ireland to have a veto on those arrangements because, after all—and I must be very frank about this—the people of this country have taken a great decision embracing the entire four nations of this country, by a simple majority vote that went 52:48 and which we are honouring now. I think that principle should be applied elsewhere, and I see no reason why it should not be applied in Northern Ireland as well. It is fully compatible with the Good Friday agreement.

[Mr Philip Hammond (Runnymede and Weybridge) (Ind)]

Before I decide whether to jump on the Prime Minister’s bus, I would like to be just a little clearer about the destination; I would like to be reassured that it remains the deep and special partnership with the European Union that we promised the British people in our 2017 election manifesto. In the absence of the UK-wide backstop, which has now gone from the package, the best way to give us that reassurance is to ensure a proper role for Parliament in the process of the future negotiations. So could the Prime Minister today make a commitment to accept the Nandy-Snell amendments, which the previous Government agreed would prevail?

[The Prime Minister]

I can certainly give that commitment.

G7 Summit

Lord Hammond of Runnymede Excerpts

Tuesday 3rd September 2019 Commons Chamber

[The Prime Minister]

I am glad that the hon. Lady has given me occasion to remind the House that there are now in fact 700 more doctors in the NHS since the vote to leave the EU. Just in the last six weeks, we have been able to announce another £1.8 billion going to 20 new hospital upgrades around the country, in addition to the £34 billion extra that the Conservative Government are putting into the NHS. I am grateful to her for allowing me to point that out.

[Mr Philip Hammond (Runnymede and Weybridge) (Con)]

My right hon. Friend has assured me that he is very keen to get a deal with the European Union, but last Friday Chancellor Merkel of Germany observed somewhat acerbically that nine days into the 30 days that the Prime Minister had requested during his visit to Berlin, she had not yet seen any proposals from the United Kingdom. Could the Prime Minister now make a commitment to publish this afternoon the UK’s proposals, so that those of us who are considering what to do later today can have had the benefit of seeing them? Will he further commit to transmitting those proposals without delay to the European Union?

ISIL in Syria

Lord Hammond of Runnymede Excerpts

Wednesday 2nd December 2015 Commons Chamber

[The Secretary of State for Foreign and Commonwealth Affairs (Mr Philip Hammond)]

I congratulate the right hon. Member for Leeds Central (Hilary Benn) on an outstanding exposition of the case for the motion. It will go down as one of the truly great speeches made in the House of Commons.

The proposal before the House is clear, simple and specific: to extend the airstrikes that we are already carrying out against ISIL in Iraq across a border that they themselves do not recognise and into their heartland in Syria. The Prime Minister set out the compelling arguments in favour of taking this action as part of a comprehensive strategy for Syria. In response, the Leader of the Opposition set out his well-known and well- understood principled objections to military intervention, objections that he has developed over many years and which are obviously sincerely held. I respect those objections as such, although I believe them to be profoundly misguided.

It is clear from the shadow Foreign Secretary’s speech, and from those of the right hon. Members for Derby South (Margaret Beckett) and for Kingston upon Hull West and Hessle (Alan Johnson) and many others, that for many Opposition Members the real issue of conscience at stake here is our obligation to act in the best interests of the UK and for the protection of British citizens.

For me, one of the most interesting aspects of the Leader of the Opposition’s speech was his repeated refusal to confirm whether it is his party’s policy to support the current action in Iraq, which this House voted for overwhelmingly in September 2014. Not only is he opposed to extending action to protect Britain against Daesh, but we have to assume from his silence that he wants to roll back the action that we are taking in Iraq now to protect the Kurds, the Yazidis and others and to support the steady erosion of ISIL control by the Iraqi security forces and the peshmerga. I ask Opposition Members whether that is now the position of the Labour party, despite its long and honourable tradition of fighting what the right hon. Member for Leeds Central has himself described as fascism. I hope that we will have confirmation as soon as possible that the Labour party remains committed to the current action in Iraq.

[Jason McCartney (Colne Valley) (Con)]

Will the Foreign Secretary give way?

[Mr Hammond]

I will not give way, because time is very short.

I believe that today we saw the House at its best. A total of 104 Members have spoken. We heard forensic analysis and passionate conviction. I think that we can collectively be satisfied that, as a House, we have done justice to the gravity of the subject. With so many contributions and only a few minutes remaining, I hope that right hon. and hon. Members will forgive me if I do not acknowledge them all individually, but I will do my best to try to address the principal themes and questions that have arisen during the debate.

One of the key issues is the need to understand what the military plan is and who will deliver it. I have to say that there appears to be some confusion about that, so let me try to clarify it. We all agree that airstrikes alone will not finish ISIL, but they will deliver immediate benefit. They will reduce ISIL’s external attack planning capability, making Britain safer, and they will, over time, degrade ISIL and force a change in its behaviour. However, airstrikes alone will not create a vacuum.

During the debate, some hon. Members have sought to have it both ways, arguing that bombing ISIL in Raqqa will not make a difference, and at the same time suggesting that bombing ISIL in Raqqa will immediately create a power vacuum. Ultimately, there will need to be a ground assault on Raqqa, supported by continued airstrikes. However, as the right hon. Member for Normanton, Pontefract and Castleford (Yvette Cooper) said, that will come not in days or weeks, but in months and perhaps years, and that is before it even begins, let alone ends. We have had questions about ground forces—where are the ground forces going to come from? The context of this is a comprehensive strategy—a military track against ISIL and a political track against Assad. The time for retaking ISIL’s heartland in Syria will be when the civil war is ended, a transitional Government are in place, and the world can then once again support the Syrian Government so that that Syrian army, the Syrian opposition forces and the Kurdish forces can turn their guns on ISIL, liberating their own country from this evil organisation, supported by the coalition with weapons, with training, with technical support, and with air power.

Much has been made during the course of this debate about the number of opposition fighters available to join in that effort. The number of 70,000 is a number produced by the Joint Intelligence Committee. It is a number corroborated by the evidence of our US allies. But the situation on the ground is complex. There is a spectrum of views included in that 70,000-strong force. Yes, it includes a large element of secularists who have views that we would recognise as democratic, and yes, it also includes Islamists, but there are Islamists in the parliaments of Kuwait and Tunisia. We can work with Islamists who accept the democratic process and are prepared to take part in it.

The second issue that has arisen during the course of this debate is a question about the overall strategy. The Prime Minister was absolutely clear that military action is just one part of a comprehensive strategy. There has to be a political track and there has to be a humanitarian track. It is clear that we have to pursue the political track in parallel with the military. It is the only way to end the civil war in Syria and bring about the defeat of ISIL. Now we have an International Syria Support Group—the Vienna process. That is a major change in the context here, bringing together all the major international players behind a common vision of what is needed to end the war. It includes Russia, Iran and Saudi Arabia, as well as the US, UK, France, Turkey and China. For the first time, all these countries have accepted the need for Syrian-led, Syrian-owned political transition based on the Geneva principles—a transition that will leave the institutions of the state intact, avoiding the mistakes that were made in Iraq. Of course differences remain between the parties, particularly about Assad how will transition out, but they have agreed together a timeframe for political negotiations, including transitional government within six months and a new constitution and free and fair elections within 18 months.

I know that there are those who question the commitment of the United States or the engagement of Russia in this process, so I want, if I may, to quote from a letter that I have received this morning from the United States Secretary of State, John Kerry. He says:

“The United States has long believed that while military action can reinforce diplomacy there can be no military solution to the civil war in Syria. We have to pursue a political track. And at the same time there can be no political deal with Daesh. They have to be degraded by military force.”

He goes on to say that

“the Vienna process presents the best opportunity in four years for an agreement that can establish a ceasefire and create a political process leading to a new constitution and democratic elections.”

Importantly, he concludes by telling me this:

“Senior Russian officials have helped lead the effort to find a common way forward and have expressed firm commitment to the Geneva principles. Russian leaders have indicated both publicly and privately on numerous occasions that they are open to a political transition, including a new constitution and elections.”

The third issue that came up several times during the course of today is the question of whether airstrikes will make a difference. The right hon. Member for Leeds Central and several other Members made the point that they were effective in halting the precipitate advance of Daesh in Iraq last year and are now contributing to the erosion of Daesh positions in Iran. The UK already provides a significant element of the high-precision strike available to the coalition, and that high-precision strike will be vital to the campaign in Raqqa.

The hon. Member for Birmingham, Northfield (Richard Burden) asked about the rules of engagement. Rules of engagement are classified, but I can tell him that the UK’s rules of engagement are among the most restrictive in the world. Bringing British discipline, British skills and British precision weapons to bear will save lives as we prosecute this campaign. We will minimise civilian casualties. There is no military logic and no moral logic to prosecuting ISIL in Iraq but not targeting its HQ in Syria.

Finally, I want to turn to the fourth issue that has arisen during the course of this debate: will Britain’s taking part in airstrikes increase the threat to our security? In 2014, there were 15 ISIL external attack plans. This year, so far, there have been 150. The scale of this problem is rising exponentially. ISIL already poses a direct threat to the United Kingdom: 30 British tourists killed on the beaches of Tunisia, what could have been a British plane downed over the deserts of Sinai and seven different terrorist plots disrupted by the security services in the UK in the past 12 months.

The judgment of the Joint Intelligence Committee and the director general of the Security Service is that the UK is already a top tier of ISIL’s target list. They hate us for who we are, not for what we do. We have to be clear—I think the right hon. Member for Derby South was the first to say this—that the risks of inaction are far greater than the risks of action. We have to act now to degrade this threat to our security, and we will do it by targeting their heartland and their control centre.

We are not debating tonight, as some would have us believe, whether or not to “go to war”. Fifteen months ago, this House voted overwhelmingly to begin airstrikes against ISIL in Iraq. The simple question that we are deciding tonight is whether to extend those operations to tackle ISIL in its heartland in Syria—targeting the head of the snake. This is not a fight that we have chosen. By the atrocities it has committed, by the murderous regime of brutality and terror it has inflicted on the people of Iraq and Syria, and by its clear intent and capability to strike us in the UK and at British citizens abroad, ISIL has made that choice for us. To answer the question asked by my hon. Friend the Member for Gainsborough (Sir Edward Leigh), yes, ISIL does represent a direct and imminent threat to the UK and to British citizens.

The decision tonight is this: do we take the fight to them, or do we wait for them to bring the fight to us? Do we strike them in Syria, or do we wait for them to strike us on the streets of London? What kind of country would we be if we refused to act in the face of a threat to our security as clear as the one that ISIL poses? Indeed, what kind of country would we be if we were unmoved by the murder, the rape, the beheadings and the slavery that ISIL imposes on its subjects? And what kind of country would we be if we ignored the calls for help from our nearest neighbours even as they grieve for their dead? We cannot contract out the responsibility for our national security. We cannot rely on others to take actions to protect our citizens that we are not willing to take ourselves.

The threat is clear. Our ability to respond to it is undoubted. The moral imperative to act is compelling. The legal case to do so is watertight. We do not propose military action lightly and we do not propose it in isolation. We will vigorously pursue the Vienna process to ceasefire, transition and a new representative Government in Syria. We will lead the international community in planning and delivering post-conflict reconstruction. Let us tonight give a clear and simple message to our allies, to the enemy and to our brave armed forces, who we are asking to do the job for us. Let us show beyond doubt what kind of a country we are by endorsing decisively the motion before us this evening.