Class 4 National Insurance Contributions

Debate between Lord Hammond of Runnymede and Lord Walney

Wednesday 15th March 2017 Commons Chamber

[Mr Hammond]

Yes. As we have now cast more widely our review of the differences in how employees and the self-employed are treated, it is right that we should look at that particular aspect as well, and we will do so.

[John Woodcock (Barrow and Furness) (Lab/Co-op)]

Can we just be clear: is the Chancellor saying that he was not aware that he was breaking his own manifesto promise until the BBC pointed it out, or that he was aware of it but was just hoping no one noticed?

[Mr Hammond]

Neither. We understand the commitment that we made to have been discharged by the passage through the House of the National Insurance Contributions (Rate Ceilings) Act 2015, which set out very clearly the scope that the then Chancellor decided to apply to the national insurance contributions lock. That is how the Treasury has worked since 2015, with the locks and ring-fences that were put in place. They are part of the everyday workings of the Treasury, and that was what we worked to in this case. However, I have accepted today that there is a broader interpretation—based on the manifesto itself, not the legislation that implemented it—and that is why I have come to the House and made this statement.

Libya

Debate between Lord Hammond of Runnymede and Lord Walney

Tuesday 19th April 2016 Commons Chamber

[Mr Hammond]

We do, of course, have continuing discussions with all Gulf states. It is a well-known fact that both Qatar and the UAE have in the past been active in Libya, but it is also fair to say that all Gulf states have been somewhat distracted by the war in Yemen and have not, perhaps, played as active a role recently as they did earlier in the conflict.

[John Woodcock (Barrow and Furness) (Lab/Co-op)]

Given the turmoil in Libya in the five years and one month since the House of Commons authorised action, does the Secretary of State regret having the UK acquiesce to transferring a mission that was designed under the responsibility to protect to avoid a genocide to one focused on regime change?

[Mr Hammond]

This was a complicated situation on the ground and, having embarked on the mission to protect the population of Benghazi against genocide and having had to follow where that took us to protect the population from the retribution that the regime was seeking to vent on it, we did what we had to do. I think we should be proud of having rid Libya of the tyrant Gaddafi, who had effectively dismantled the structure of government in Libya. That is why Libya has had its problems of the past few years—there was no government structure in Libya.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Lord Walney

Tuesday 12th January 2016 Commons Chamber

[Mr Hammond]

Yes, and I very much welcome my hon. Friend’s Singing for Syrians initiative. That and initiatives like it show an extraordinary solidarity with the Syrian refugees. Yes, other countries should do more. The UK is the second largest donor to the Syrian humanitarian crisis, after the United States. We can be incredibly proud of that record. I am also proud that the Syrian conference we will hold on 4 February will not just ask people to pledge additional money. We will go to the conference with innovative ideas, worked out with the Governments of Jordan and Turkey, to allow refugees proper access to the workplace in their host countries and to healthcare and education in a way that provides holistic support for those refugees, not just a UN handout.

[John Woodcock (Barrow and Furness) (Lab/Co-op)]

Of course, there would be fewer displaced people to Syria’s neighbours if Russia stopped its despicable bombing of civilians. Has the Foreign Secretary had a chance to confirm reports that on Saturday the Syrian Emergency Task Force’s humanitarian headquarters in the city of Idlib were bombed by Russia, and what representations can the UK make on that?

[Mr Hammond]

We make regular representations to the Russians, first about the indiscriminate nature of their bombing, including the bombing of civilian areas, and secondly about the fact that they are still, for the overwhelming majority of their airstrikes, targeting the moderate opposition fighting the Syrian regime, not Daesh.

Daesh: Syria/Iraq

Debate between Lord Hammond of Runnymede and Lord Walney

Wednesday 16th December 2015 Commons Chamber

[Mr Hammond]

We have been doing just that. As my hon. Friend says, we have considerable influence in both Baghdad and Irbil. The problem is that some of the steps that need to be taken to create an environment in which the Sunni population in Iraq feels comfortable and as if they are fully fledged citizens of the country are blocked in the Iraqi Parliament. They are being blocked for a variety of reasons, some of which are to do with the basis of power politics rather than issues of high principle.

[John Woodcock (Barrow and Furness) (Lab/Co-op)]

Does the Foreign Secretary agree that Vladimir Putin must choose whether he wants his country to remain a respected member of the UN Security Council, or to continue down the road towards being an international pariah and rogue state? If Russia chooses the latter path, do the UK and coalition partners have the steel to ensure that it does not profit in any way from its flagrant abuses in the region?

[Mr Hammond]

I want to answer that question carefully. I have said before in this House that, while I deplore many things that the Russians do, I do not believe that Russia is soft on Daesh. Russia and President Putin recognise a threat from Daesh to Russia, which is at least as great as the threat from Daesh to the west. Russia has 13 million Sunni Muslims living inside the borders of the Russian Federation. What we disagree about is methodology. Mr Putin would say, if he were here to answer the question, that he is going about defeating Daesh in the way that he believes will be most effective. We fundamentally disagree with him for the reason that I explained to the hon. Member for Batley and Spen (Jo Cox), which is that unless and until Assad is gone, we will not get a reconciliation in the Syrian civil war and we will not get all Syrians turning their guns on Daesh.

ISIL: Iraq and Syria

Debate between Lord Hammond of Runnymede and Lord Walney

Thursday 16th October 2014 Commons Chamber

[Mr Hammond]

The hon. Gentleman is right: there have, sadly, been industrial-scale organised kidnappings—perhaps not so much kidnappings as enslavement of large numbers of people, particularly of women but people of communities and faiths that ISIL does not recognise or approve of. Sadly, there is little that we, from outside, are able to do to trace what has happened to those people on the ground. Some of them have escaped and turned up as refugees, and their heart-rending stories have been published in some of the newspapers, which the hon. Gentleman will have seen. I am afraid we have low visibility when it comes to what has happened to many of these people.

[John Woodcock (Barrow and Furness) (Lab/Co-op)]

What is the rationale for proving only non-lethal support to the Syrian moderate opposition?

[Mr Hammond]

The Government’s decision to date has been that we do not wish to move to the provision of lethal support to Syrian opposition groups while the opposition remains as fragmented as it is and the intentions of all the groups in it are not as clear as we would like. Some of the groups that might have been considered eligible for support as members of the moderate opposition two years ago have subsequently shown themselves to have little in common with our view of the democratic future of Syria.

Ukraine, Middle East, North Africa and Security

Debate between Lord Hammond of Runnymede and Lord Walney

Wednesday 10th September 2014 Commons Chamber

[Mr Hammond]

I must make some progress.

In Syria, we continue to support a negotiated political transition to end Assad’s brutal rule and pave the way to a political solution to this appalling conflict. To those who ask whether we should make common cause with Assad against the new enemy, ISIL, I say that Assad cannot be the answer to defeating extremism. Working with this butcher would only reinforce the appeal of ISIL and feed radicalisation at home. By contrast, therefore, we are strengthening our support for the moderate opposition, who share our values of respect for human rights, the rule of law and inclusive politics. They deserve our admiration as they take the fight to the extremist terrorists in their country as well as taking on regime forces.

In Iraq, we have strongly welcomed the formation of the new Government under Dr Haider al-Abadi. To be successful in turning the tide against ISIL, that Government must now win the confidence of all Iraq’s communities by turning into deeds the words of the new Prime Minister’s published programme for inclusive Government.

[John Woodcock (Barrow and Furness) (Lab/Co-op)]

Will the Foreign Secretary accept my apologies for turning up to the debate slightly late? Does he accept that the new Government of Iraq now have to show that they are doing this, and that if they cannot, it will be time for the UK and its neighbours to reconsider what the political structure of Iraq can be to create stability in the region?

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Lord Walney

Monday 17th March 2014 Commons Chamber

[Mr Philip Hammond]

As I have said before in the House, part of the outcome of the strategic defence and security review in 2010 was that we should focus, while consolidating our armed forces, on our regeneration capability in case the need arose, or the resources became available, for capabilities or scale of operations that we do not have.

[John Woodcock (Barrow and Furness) (Lab/Co-op)]

We were delighted that the Secretary of State and his Australian counterpart made it through the Barrow fog to visit the shipyard on Thursday to announce major new infrastructure investment to make the Successor programme possible and the cutting of steel on the seventh Astute-class submarine. Did his conversations with the company and the work force on that day maintain his confidence that the leak in the test Vanguard reactor will not affect the build of the Astute programme?

[Mr Hammond]

I am not sure that I discussed that matter with the work force at Barrow, although I did have some interesting conversations that reassured me greatly about their commitment to the programme. We are clear that the incident at Dounreay will not have any impact on the progress of the Astute or Successor programmes.

Nuclear Submarines

Debate between Lord Hammond of Runnymede and Lord Walney

Thursday 6th March 2014 Commons Chamber

[Mr Hammond]

As my right hon. Friend says, Governments of both persuasions over the years have adopted a prudent and precautionary approach to the safety of our nuclear submarine fleet, and have invested money, where it is necessary to do so, on the basis that safety always takes priority. As I have said, the decisions that I am announcing today are not driven by concerns about safety. There is no safety risk identified from this incident. They are driven primarily by concerns about future submarine availability.

The information on core burn is classified, but I can reassure the House that the percentage of core burn on the reactor at Dounreay exceeds by far the percentage of core burn on any of our operational reactors.

[John Woodcock (Barrow and Furness) (Lab/Co-op)]

Continuous at-sea deterrence is of course the foundation of our deterrent policy. As the Secretary of State knows much better than I do, it requires not only the Vanguard-class submarines to be continuously at sea, but the Trafalgar and the Astute classes to be around. The worst-case scenario would be the refuelling of all Vanguard and Astute submarines. Does he have complete confidence that CASD would be maintained if that were to happen, and what additional capacity would be needed to carry out such an extensive venture?

[Mr Hammond]

The hon. Gentleman asks sensible questions, but he is verging into speculative matters at this stage. This is a very tiny flaw in a reactor that has been hammered at maximum output over a long time. It is premature to suggest that when we examine the core we will find some systemic need to refuel all other reactors of a similar type. That is not the expectation. However, as he would expect, we will plan for every contingency, and the measures that I have announced will allow us to preserve the option of refuelling further Vanguard and Astute submarines should that be deemed expedient in the future.

Afghanistan

Debate between Lord Hammond of Runnymede and Lord Walney

Monday 10th February 2014 Commons Chamber

[Mr Hammond]

There are two separate points here. First, the equipment that was bought for Afghanistan through urgent operational requirements, especially armoured vehicles, represents a significant investment and we are repatriating it into core. All armoured vehicles except those that are damaged beyond economic repair will be returned to the UK and brought back into the core equipment fleet.

On the question of reserves, we have made a commitment that the reserves will increasingly in the future train on and use the same equipment as the regular forces. We have already started to deliver on that commitment by rolling out new deliveries of equipment to reserve units across the country. The pool of equipment will be joint, for the use of the integrated force—regulars and reserves.

[John Woodcock (Barrow and Furness) (Lab/Co-op)]

Our fundamental mission in Afghanistan was of course to improve the security of the British people, rather than any improvement in the living conditions of Afghans. Does the Secretary of State agree, however, that the two go hand in hand? If we leave behind a more progressive country, it is more likely to remain an enduring ally of the United Kingdom in the decades ahead. Will he agree to look again at our principles for future intervention to ensure that making countries more progressive and upholding our values remain a fundamental part of what we are about as a country?

[Mr Hammond]

Let me answer that question this way: it is clear that our immediate mission was to deny Afghanistan to terrorists who would have used it as a base to strike at us and our allies and interests. But in the long term, it was never going to be a credible proposition that foreign forces could hold this territory. We had to build a stable and capable state in Afghanistan with a security force of its own that could do that job. My judgment is that a country that has a basic rule of law and recognises human rights will be a more stable and sustainable place in the future. A country that has education, health care and infrastructure will engage the loyalty of its citizens in a way that Afghan Governments have not always done in the past. We have to be very careful about the tone of this debate, however. It is not about exporting our perfect model of society and imposing it on others who in many fundamental respects will not accept some of the tenets that we regard as basic to our everyday existence.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Lord Walney

Monday 3rd February 2014 Commons Chamber

[Mr Hammond]

The clear stated intention, which was subsequently borne out by events, was that the Kuznetsov carrier task group would proceed from Russia to the eastern Mediterranean, where it currently is. In accordance with the pattern of its last deployment, it stopped in the relatively sheltered waters of the Moray firth to re-oil on its way to the eastern Mediterranean. This is all perfectly normal procedure, and it was notified to NATO in advance.

[John Woodcock (Barrow and Furness) (Lab/Co-op)]

Does not the debate on this issue underline the importance of our combined—UK—Royal Navy, and also the potential in the strategic NATO alliance? Does the Secretary of State not agree that, in the words of another political figure, it would be “unpardonable folly” to put at risk that NATO alliance by disavowing the very strategic nuclear concept on which it is based?

[Mr Hammond]

The hon. Gentleman is right on all counts. NATO’s strategic nuclear concept of course provides protection for the whole of the United Kingdom. Our very close relationship with our NATO allies—in this case, specifically with Norway—ensures that we have good visibility and good intelligence about Russian vessels and, indeed, Russian aircraft approaching the UK’s area of interest.

Armed Forces Restructuring

Debate between Lord Hammond of Runnymede and Lord Walney

Thursday 23rd January 2014 Commons Chamber

[Mr Hammond]

My hon. Friend has a good point. The hon. Member for Gedling (Vernon Coaker) lectures me from the Opposition Front Bench, but it is noticeable that during that long period after 2001 when there appeared to be no limit to the scale of public spending and no limit to the level of taxation and borrowing and spending that the then Government were prepared to engage in, the armed forces did not share in that cornucopia and the consequences are here for all of us to see today.

[John Woodcock (Barrow and Furness) (Lab/Co-op)]

The Conservative party continued to promise a larger Army even once the scale of the challenge facing our public finances and the country was known. Does he accept that that did a disservice to the British public and the armed forces on whom we rely?

[Mr Hammond]

I know that Opposition Members do not like this, but the truth is that we discovered a black hole in the finances of the Ministry of Defence that had to be dealt with if we were going to have sustainable armed forces in the future and eliminate our armed forces being asked to deploy without the equipment and protective personal equipment that they required to do so safely. We had to put that right. That has meant that some tough decisions have been made, but my understanding is that the Opposition accept the restructuring and resizing of our armed forces and that we have to have an Army of 82,000 going forward. If I am wrong about that, I should be happy to be corrected from the Front Bench and to have an explanation of how the Opposition propose to pay for a larger Army.

IT Systems (Army Recruitment)

Debate between Lord Hammond of Runnymede and Lord Walney

Tuesday 14th January 2014 Commons Chamber

[Mr Hammond]

My hon. Friend makes a good point, and recruiting ex-regulars is an important part of our strategy for building the reserves, not least because ex-regulars drop straight to the trained strength if their regular Army service is recent enough. As he will know, we are currently offering an enlistment bounty for ex-regulars to join the reserves, which reflects some part of the cost saving that we make through not having to take ex-regular recruits through the full reserve training process.

[John Woodcock (Barrow and Furness) (Lab/Co-op)]

This administrative quagmire is the latest part of what is becoming a worrying and costly pattern of events under the Secretary of State’s stewardship. He had a good reputation for competence around Whitehall before he took up his latest job. What has happened?

[Mr Hammond]

The important thing in a Department as large and complex as the Ministry of Defence, with a budget of £33 billion a year, is not to pretend that we can operate the vast range of contracts and arrangements we have in place without some failures. That is never going to happen. The challenge is to grip failure when it becomes apparent, and to manage and resolve it as quickly and efficiently as possible. I am prepared to stand on my record of delivering that kind of outcome.

Defence Procurement

Debate between Lord Hammond of Runnymede and Lord Walney

Tuesday 10th December 2013 Commons Chamber

[Mr Hammond]

My hon. Friend is absolutely right. There is a long history of failure in defence procurement by Governments of both main parties going back decades. We now have to construct a model that works. As I just said to the right hon. Member for Coventry North East (Mr Ainsworth), the former Defence Secretary, we can do a lot within the public sector in DE&S plus, but we cannot make the culture change that some people think is necessary. It is right and proper that we do what we can in the public sector to make DE&S, as a public sector body, as high a bar as we can for a private sector challenger to have to match and exceed, but we should not be afraid, once we have done our internal reform work, to allow the private sector to make proposals again to see whether it could deliver yet more value for money for the taxpayer. That is, after all, our principal responsibility.

[John Woodcock (Barrow and Furness) (Lab/Co-op)]

There was surely no reason the Secretary of State had to wait until the GoCo option had collapsed before coming forward with these amended DE&S plus proposals. Does that not show that he was never truly neutral on the choice between an in-house option and a GoCo, that he wanted to rig the process in favour of a GoCo, and that that bias has blown up in his face, costing taxpayers and his own personal reputation?

[Mr Hammond]

I remind the hon. Gentleman that his Front-Bench spokesman welcomed the competition and said that we needed to test the GoCo proposition against the DE&S plus proposition—

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Lord Walney

Monday 2nd September 2013 Commons Chamber

[Mr Hammond]

We have not yet contracted but, as I said in response to the question asked by the hon. Member for Islington North (Jeremy Corbyn), we believe that the costs of replacing the Trident deterrent will fall within the estimates set out in the 2006 White Paper. I should say to my hon. Friend that we have made significant strides to reform the way in which the submarine enterprise is conducted, and we believe that the MOD has a much firmer control of the enterprise’s cost base than has previously been the case.

[John Woodcock (Barrow and Furness) (Lab/Co-op)]

Is the right hon. Gentleman keeping an open mind about the timetable? If experts and the industry tell him that there could be a more cost-effective solution for the taxpayer if the main-gate decision were to come earlier than the scheduled date of 2016, will he be alive to that, rather than sticking to the current agreement within the coalition?

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Lord Walney

Monday 17th June 2013 Commons Chamber

[Mr Hammond]

I am afraid I do not agree with him. I suspect this is a retired rear admiral—well, I know it is; and if it isn’t, he soon will be—to whom the hon. Lady refers. We are clear that the retention of the continuous-at-sea deterrent is vital to ensure Britain’s national security and is the ultimate guarantee of our sovereignty.

[John Woodcock (Barrow and Furness) (Lab/Co-op)]

I very much look forward to welcoming the Minister for defence equipment, the Under-Secretary of State for Defence, the hon. Member for Ludlow (Mr Dunne), and the shadow Secretary of State to my parliamentary reception on 1 July about the high-end manufacturing jobs that the submarine supply chain produces. The durability of the submarine hulls is critical to the decisions and the timing of renewal. Will the Secretary of State give the House an update on his Department’s assessment of extending the hull life to 35 years, as is currently the case, and any possible decision to extend it further in future?

[Mr Hammond]

First, I will check my diary. I thank the hon. Gentleman for his kind invitation.

I am not sure whether the hon. Gentleman is asking if we have considered whether it is possible to extend further the life of the existing submarines or to design the successor class with a longer in-service life. On the first question, he will know that we have already extended the life of the Vanguard class once, and it is not judged possible or safe to extend it further. On the second question, we will of course be looking to design the successor class with the longest possible in-service life.

Better Defence Acquisition

Debate between Lord Hammond of Runnymede and Lord Walney

Monday 10th June 2013 Commons Chamber

[Mr Hammond]

I hear my hon. Friend’s point but, to be blunt, I think that we have to be realistic about this and acknowledge that military personnel are not necessarily trained to be best equipped to deal with world-class industrial project managers employed on eye-wateringly large salaries by the defence contractors we have to negotiate with. It is to try to allow DE&S to engage with those multinational corporations and world-class project managers on a level playing field that we are considering these changes. There will be a role for the military in this organisation, but it will not generally be as lead project mangers.

On my hon. Friend’s other point, I am grateful to him for drawing the House’s attention to the fact that the majority of the US nuclear programme is in the hands of non-public sector organisations—federally funded research and development corporations—which look very much like GoCos.

[John Woodcock (Barrow and Furness) (Lab/Co-op)]

The strategic defence and security review in October 2010 resulted in a four-year delay to the in-service date for the Vanguard class replacement submarines. It was by no means the first project that has been shifted to the right with increased costs, but it caused particular disappointment because it was done by an Administration who, when in opposition, criticised the former Administration for doing similar things. If a GoCo is in place when such decisions are considered in future, on submarines or anything else, will it be taken out of Ministers’ hands?

[Mr Hammond]

As I have already said, Ministers will retain the ability to provide strategic direction. If the hon. Gentleman does not mind, I will take no lectures from the Opposition on shifting projects to the right at huge cost, because the previous Government shifted the carrier project two years to the right at a cost of £1.6 billion. What was actually done in 2010, in relation to the submarine enterprise, was a reconfiguration of the programme between the Astute class submarines and work on the Vanguard class replacement submarines, which resulted in a delay to the introduction into service of the Vanguard class, but within the overall constraint that we have in this country of needing to sustain a submarine yard at Barrow, and the minimum level at which we can sustain a submarine yard is building one submarine at a time. However we configure them—Vanguard class first or Astute class first—we have to provide that work flow if we are to keep that sovereign capability. That is the kind of single-source procurement that we are targeting in the announcement I made today on the single-source procurement rules.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Lord Walney

Monday 16th July 2012 Commons Chamber

[Mr Hammond]

I am not aware of any such cases, but I am happy to talk to my hon. Friend outside the Chamber and to write to him.

[John Woodcock (Barrow and Furness) (Lab/Co-op)]

Further to the previous unclear answer, is the Secretary of State categorically ruling out revisiting the “cat and trap” system for the aircraft carriers?

[Mr Hammond]

I do not think that there was a previous unclear answer. We have made a decision to revert to the STOVL––short take-off and vertical landing—solution. We are highly confident of the delivery of the F-35B STOVL variant, which the US Marine Corps depends on. We have had the highest level discussions with the US Administration, who strongly support the programme. I am looking forward to seeing US Marine Corps aircraft flying at Pax River on Wednesday.

Nuclear-powered Submarines

Debate between Lord Hammond of Runnymede and Lord Walney

Monday 18th June 2012 Commons Chamber

[John Woodcock (Barrow and Furness) (Lab/Co-op)]

This welcome announcement underlines just how many skilled jobs are sustained across the UK by the submarine programme, not only in Barrow. May I press the Secretary of State on what he said about the review of alternatives informing the main gate vote in 2016? Is he really saying that Ministers will form no conclusion about the review until then?

[Mr Hammond]

No, I am not saying that. I am saying that the conclusion of the review will come before the main gate decision in 2016 and will clearly therefore inform it.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Lord Walney

Monday 11th June 2012 Commons Chamber

[Mr Philip Hammond]

I am grateful to the hon. Lady. My understanding, although I will have to check this, is that attrition is measured by ethnic group in the army. I will take the matter up with my Afghan counterpart on my next visit and let the hon. Lady know what I find out.

[John Woodcock (Barrow and Furness) (Lab/Co-op)]

How is the review into the alternatives to Trident going?

Strategic Defence and Security Review

Debate between Lord Hammond of Runnymede and Lord Walney

Thursday 26th January 2012 Commons Chamber

[Mr Hammond]

I am obviously not privy to the advice given to Ministers in the previous Government by their defence advisers, nor should I be, but if the previous Government were succumbing to recommendations from the defence chiefs, they were doing them no favours by pretending that they could deliver equipment programmes for which there were no funding lines or budget cover, and when there was no prospect of their materialising.

[John Woodcock (Barrow and Furness) (Lab/Co-op)]

rose—

[Mr Hammond]

I am going to make some progress.

Does it matter that Labour’s programme was stuffed full of projects that would never and could never be delivered? I would argue that it did matter, because so long as the fantasy persisted, the doctrine and philosophy of our armed forces—[Interruption.] If the hon. Member for North Durham (Mr Jones) listens, he might understand the point being made. So long as the fantasy persisted, the doctrine and philosophy of our armed forces were built around the notion of those platforms being delivered, when what the forces really need is a realistic programme that we can deliver and that they can have confidence in, so that they can start rethinking their doctrine and operating philosophy for the future around the platforms and capabilities that we will have.

[John Woodcock]

To aid this debate, could the Secretary of State just remind the House whether his party in opposition argued for a smaller or larger Army than the then Government were prepared to support?

[Mr Hammond]

What I say to the hon. Gentleman is that we face the situation that we face. We came into office with a massive deficit, which we inherited from the previous Government, and as I shall argue, we have taken the tough decisions that, frankly, the previous Government shirked over the last few years, thereby doing the armed forces and the country no favours.

By 2010, Britain’s armed forces had endured a decade of high-tempo operations without a formal defence review and were faced with a period of acute fiscal pressure. The case for reform to ensure that the armed forces were restructured and re-equipped to protect our national security against the threats that we would face, within a budget that the nation could sustain, was unanswerable. Tough decisions were necessary to deal with problems on the scale of the inherited defence deficit, and this Government took them. I am clear, as the Prime Minister and my predecessor have been, that whatever the pain, our first duty is to put our armed forces on a sustainable basis by restructuring them for the future and putting the budgets that sustain them on a stable footing. As the SDSR acknowledged, the process of transitioning to Future Force 2020 will require us to take some calculated and carefully managed risks against certain capabilities, most prominent among which are wide-area maritime surveillance, to which the hon. Member for Bridgend referred, and carrier strike.

I regret in particular the cuts in personnel that are required to deliver that rebalancing and make the armed forces sustainable. However, in case any confusion has been created over the last few days, let me clear up one point. The headcount of military personnel will have been reduced by around 18% by 2020 compared with the 2010 baseline. That is in contrast to a 38% reduction in civilian headcount. Regrettably, some of that reduction will have to be achieved by redundancy. Where that is necessary, every opportunity is being given, and will continue to be given, for military personnel at risk of redundancy to retrain for alternative roles of which there are shortages in the armed forces.

I heard the comments of my right hon. Friend the Member for North East Hampshire earlier. Following the publication of the Select Committee’s report, I have asked for a specific briefing on the point that he raised. I would be happy to share that with him after the debate—[Interruption.] I will share it with the right hon. Member for East Renfrewshire (Mr Murphy) as well, if he wishes. It includes a list of the shortage trades for which suitably qualified individuals who are facing redundancy are invited to apply.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Lord Walney

Thursday 10th March 2011 Commons Chamber

[Mr Hammond]

I am grateful to my hon. Friend. I have received, as I am sure other Members have, a great deal of correspondence on this issue. We are working with the Civil Aviation Authority to ensure that the European approach remains proportionate and appropriate. I assure her that we will not agree to anything that lessens safety levels in this country.

[John Woodcock (Barrow and Furness) (Lab/Co-op)]

At our previous exchange, I asked the Secretary of State about rising fuel prices, and he said:

“I am pleased to say that it is not my business to do anything about this”.—[Official Report, 27 January 2011; Vol. 522, c. 435.]

Up and down the country, motorists will think that it is precisely the business of the Transport Secretary—the clue is in the job title. We are calling on the Government to reverse the VAT hike and consider deferring the next duty rise. What has he done?

[Mr Hammond]

Perhaps in due course the hon. Gentleman will learn that the occasional piece of humour does not go amiss in the Chamber. It is not the responsibility of the Transport Secretary to manage world oil markets, and it is not the responsibility of the Transport Secretary to deal with VAT or fuel duty. The latter are matters for my right hon. Friend the Chancellor, who will no doubt allude to them in his Budget speech on 23 March.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Lord Walney

Thursday 27th January 2011 Commons Chamber

[Mr Hammond]

There are two separate lights at the end of the tunnel—[Interruption.] Neither of them is a train coming the other way. First, as my right hon. Friend the Minister of State said earlier, 106 additional Pendolino carriages for the west coast main line have been ordered and will come into service in 2012. Secondly, as the proposed HS2 line, if approved, is built it will provide massive additional capacity on the London-west midlands route, and capacity will be freed up for new high-speed, longer-distance commuter services from places such as Milton Keynes to London.

[John Woodcock (Barrow and Furness) (Lab/Co-op)]

Ministers have spent weeks creating confusion over fuel prices. Will the Secretary of State say what he plans to do to help hard-pressed motorists? If he is so concerned now, will he say whether he thought it was fair to impose a VAT hike on fuel just three weeks ago?

[Mr Hammond]

The hon. Gentleman is a spokesman for a Government who proposed the fuel price increases that are now coming into effect, and who were planning to put VAT up, as we discovered from leaked documents before the general election. I am pleased to say that it is not my business to do anything about this, as it is a matter for the Chancellor of the Exchequer.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Lord Walney

Thursday 28th October 2010 Commons Chamber

[Mr Hammond]

I can tell the hon. Gentleman that the money will be released for construction to begin before 2015. Of course, this is a local authority-led project, so the local authority will ultimately determine how quickly the project can proceed, but both the capital allocation sum that we have made available and the private finance initiative credits will be released for use before 2015.

[John Woodcock (Barrow and Furness) (Lab/Co-op)]

I know that many Members in the Chamber and drivers across the country are disappointed with the announcements that the Secretary of State made on Tuesday, but surely sending his Minister with responsibility for roads to Russia this week was a little steep. Is it not the case that for many of the yet unconfirmed schemes, local authorities are being asked to shoulder more of the burden at a time when they are facing a 28% cut in their funding? Does not the right hon. Gentleman feel a little like a car dealer who says to his customer, “You can drive away with any vehicle you choose,” before slashing the tyres of every single car in the showroom?

[Mr Hammond]

I suppose the simple answer is no. The hon. Gentleman might be interested that the Minister with responsibility for roads has gone to St Petersburg to join in an international conference on road safety. With reference to the local authority schemes in the development pool that I announced on Tuesday, what we have said is that local authorities need to look at ways of improving the benefit-to-cost ratios of the projects that they are promoting. In some cases, that will involve getting in third-party contributions, particularly developer contributions. Some authorities may wish to increase their own contributions. All authorities should be able to reduce cost.