Windrush Compensation Scheme

Debate between Chuka Umunna and Sajid Javid

Wednesday 3rd April 2019 Commons Chamber

[Sajid Javid]

My hon. Friend is right to raise that. I remember looking at cases in which such outcomes should not have happened. We have made the compensation scheme as simple and as straightforward as possible. For example, some payments have both a tariff structure and an actual structure, because we are trying to provide as much choice as possible.

[Chuka Umunna (Streatham) (Ind)]

I represent the Windrush borough of Lambeth, where many residents have been directly affected by the scandal. The Home Secretary’s officials actually came down to help implement some of the measures introduced by his Department, but I have to say that his processes have been anything but simple and accessible. What confidence can he give us that this scheme will be any different?

[Sajid Javid]

We have looked carefully at how the scheme is going to be implemented. For example, that is why, along with the online information, there is guidance on how the applications work and how to make them easier, and there is also this freephone number. There will also be dedicated staff in the Home Office working on the scheme. The scheme will be open for at least two years, and I commit to consider any issues and whether improvements can be made. If hon. Members make any suggestions, we will absolutely look at them.

Immigration and Social Security Co-ordination (EU Withdrawal) Bill

Debate between Chuka Umunna and Sajid Javid

2nd reading: House of Commons & Money resolution: House of Commons & Programme motion: House of Commons & Ways and Means resolution: House of Commons
Monday 28th January 2019 Commons Chamber

[Sajid Javid]

Mr Deputy Speaker, I think that that was the hon. Gentleman’s speech, so you can take him off your list.

The hon. Gentleman makes a fair point. Let me emphasise that the evidence that the MAC has considered is reflected in its recommendations. He will know that, in our response in the White Paper, while we have very much based things on the evidence presented, there are still things that require further engagement before we design and settle on exactly what the future system looks like.

We also asked the MAC to review the position of international students. It recommended that there should continue to be no limits on the number of international students we welcome to study in our country, and that will of course remain our approach. As my hon. Friend the Minister for Universities, Science, Research and Innovation has strongly campaigned for, we will continue to be an open and welcoming country for international students. Our word-class universities will continue to be able to attract global talent, and we will make it easier for the brightest and best graduates to stay and work here.

[Chuka Umunna (Streatham) (Lab)]

Will the Home Secretary just confirm for the record that the Government are formally dumping their commitment to a net migration target—to reducing migration down to the tens of thousands? If I am wrong, will he at least confirm that international students will not be included in that ridiculous target?

[Sajid Javid]

There are no targets in our White Paper, which sets out our approach to the future immigration system. That said, we are still very clear, as I have already set out, that we must continue to work to bring net migration down to more sustainable levels.

European Union (Withdrawal) Act

Debate between Chuka Umunna and Sajid Javid

Wednesday 5th December 2018 Commons Chamber

[Sajid Javid]

I am always happy to listen to Members. Indeed, I have met many Conservative Scottish Members of this House, who have made that point powerfully. We are listening. The hon. Gentleman refers to current issues, whereas I want to focus in this debate on the future immigration system.

[Chuka Umunna (Streatham) (Lab)]

The Home Secretary is absolutely right to say that concerns about immigration were at the forefront of many reasons that people cited for voting to leave. Is it not therefore extraordinary that ultimately we do not know what the immigration policy and stance of this country would be after March? It necessarily will be interrelated with the future economic relationship. We have no certainty on that—we do not know what it will be—and he has not published his immigration Bill, so how can anyone know before this vote what they will be getting on immigration in the withdrawal agreement?

[Sajid Javid]

I agree with the hon. Gentleman that immigration was a big issue in the referendum debate and that the type of immigration system we have in the future will have an impact on our economic performance. I know he will be listening carefully to the rest of the debate, and I will give more information on what that system might look like. We are setting out the broad principles of the new system and will be publishing a White Paper, which will have much more—[Interruption.] We will be publishing a White Paper soon. [Hon. Members: “Soon!”] Yes, we will publish it soon.

Windrush

Debate between Chuka Umunna and Sajid Javid

Wednesday 2nd May 2018 Commons Chamber

[Sajid Javid]

My right hon. Friend is absolutely right to make that point. She says that this is about people, and that is exactly what I want to come on to in more detail.

It is important to note that my predecessor, my right hon. Friend the Member for Hastings and Rye (Amber Rudd), had already started important work to help the Windrush generation, and I would like to pay tribute to her efforts. These are people who are pillars of our society. They are people who are doctors, nurses, engineers and bus drivers—people just like my father, who came to this country inspired by hope and motivated by ambition. These individuals have made a huge contribution to making this country the great place it is to live.

That is why this Government have been taking action. As Members know, a dedicated taskforce has already been set up to provide the support these people deserve. Each person who is identified as potentially from the Windrush generation is called back by an experienced and sympathetic caseworker, who then helps them through the process. So far, there have been more than 7,000 calls, of which 3,000 have been identified as potential Windrush cases. That group is being invited to service centres around the country for appointments. Travel costs are also reimbursed. So far, more than 700 appointments have been scheduled and more than 100 people have had their cases processed and now have the documents they need. Those numbers are increasing by the day, and we will continue to schedule those appointments as a matter of urgency.

[Chuka Umunna]

I thank the Home Secretary for giving way. He is right about the contribution of the Windrush generation, but can he be absolutely clear that these are people who are here and always have been here lawfully? Will he also condemn the continual attempt, not just in the Chamber but in the country generally, to conflate legal immigration with illegal immigration? I am fed up, every time the Windrush generation are spoken about, of continually hearing, “Well, what about illegal immigration?” We are talking about the Windrush generation.

[Sajid Javid]

The hon. Gentleman is absolutely correct on both counts. My predecessor said it, I have said it and I am happy to say it again: the Windrush generation are here perfectly legally. There is nothing illegal whatsoever about it. Because the Immigration Act 1971 did not lead to documentation for those people, which has become familiar for many Members of the House, it is now right that we put that right and make it much easier to get them the documentation and formalise their status where that has not already been formalised. He is also right to point out the distinction between legal—the Windrush generation and many others—and illegal.

Windrush

Debate between Chuka Umunna and Sajid Javid

Monday 30th April 2018 Commons Chamber

[Chuka Umunna (Streatham) (Lab)]

The Home Secretary has a golden opportunity to turn the page on a toxic debate around immigration in this country, so he should dump the net migration target or at least take students out of it. Why do we not focus more on how we better integrate immigrants who come to this country, rather than attack them? The right hon. Gentleman said that he is the son of an immigrant—I am too—but what is he actually going to change and do differently from his two predecessors? All the warm words are great, but what will he do differently to stop this happening again?

[Sajid Javid]

With respect, I have had only about seven hours in the Department. If the hon. Gentleman gives me a little more time, I will set out what I am going to do.

Integrated Communities

Debate between Chuka Umunna and Sajid Javid

Wednesday 14th March 2018 Commons Chamber

[Sajid Javid]

My hon. Friend gives me an opportunity to thank and congratulate so many faith communities of every faith that do so much to bring people together. I have seen some excellent examples, whether in schools or through mosques, churches and temples. I hope that those faith communities that are already doing good work and have good practice will bid for some of the funds under the strategy, especially the innovation fund, and benefit themselves as well as allowing others to see what they can do.

[Chuka Umunna (Streatham) (Lab)]

I endorse all the comments that have been made about the appalling letters. I also welcome the publication of this strategy, not least because it incorporates many of the recommendations of the all-party parliamentary group on social integration of which my hon. Friends the Members for Bradford West (Naz Shah), for Bethnal Green and Bow (Rushanara Ali) and for Oldham West and Royton (Jim McMahon) are members. I also welcome the fact that the Secretary of State acknowledges that integration is a two-way street and does not fall into the trap of conflating integration with counter-terror, which has been deeply unhelpful in the past.

It is so important that we emphasise that the three-quarters of a million people he refers to who are not fully proficient in English want to learn English. The fact that they do not know English well is not because they do not want to. Just like the Secretary of State’s mother, they want to learn English. Much of our discourse across the House today has looked at divisions along racial, immigration and religious lines, but the divisions go beyond that. We have major divisions between the different generations and, most importantly, we cannot forget the big divisions between socio-economic classes in our country. I hope that in the implementation of the strategy he will take that on board and look at integration holistically, bringing in all the characteristics that sometimes divide us from each other, but on the whole, I think this is a very positive move by the Government.

Oral Answers to Questions

Debate between Chuka Umunna and Sajid Javid

Tuesday 30th June 2015 Commons Chamber

[Sajid Javid]

I fully agree with my hon. Friend. We will continue to work very hard to cut regulations, building on the very successful red tape challenge in the previous Parliament and the policy of one in, two out. Cutting regulation for businesses is like a tax cut for those businesses. The only difference is that it does not cost the Exchequer anything, so we should cut as much regulation as possible.

[Mr Chuka Umunna (Streatham) (Lab)]

Britain has the worst productivity in the G7, bar Japan. Proper adult skills provision, not just apprenticeships, plays a vital role in addressing that, but the adult skills budget has been cut by 35% in the past five years. Now the Chancellor tells us that a further £450 million is to be taken out of the Department’s budget, which could lead to the end of further education as we know it. In the light of these very real concerns, what assessment has the Business Secretary undertaken on the risks posed for the sector? Will he now guarantee that no college will close as a result of what he and the Chancellor are going to do?

[Sajid Javid]

One of the most important things for businesses, and for a vibrant economy, is making sure we continue to deal with the record budget deficit we inherited from the previous Labour Government. The hon. Gentleman knows that himself. He has been busy telling the press very recently:

“to be running a deficit in 2007, after 15 years of economic growth, was…a mistake.”

He understands the importance of this, and it means the Government have to make difficult decisions. He also said very recently to the Financial Times that

“We are starting from square one.”

I think he was talking about the economic credibility of the Labour party. I do not think that was an accurate statement; I think he was—

[Mr Speaker]

Order. The Front-Bench exchanges have to be brief. A lot of Back Benchers want to get in. It is very self-indulgent to have these long-winded exchanges from the Front Bench.

[Mr Umunna]

When consolidating, you have to make appropriate choices—you do not want to cut off your nose to spite your face. If we want to increase revenue, we need to increase productivity. Look at South Gloucestershire and Stroud College, which the Secretary of State attended: this month it confirmed that 70 staff posts are in danger due to the reduction in its adult learning funding. The principal of that college said:

“we need to reduce our costs in line with the reduction in funding to maintain our solvency.”

Should the alarm bells not be ringing when his own college is citing issues of solvency before we have seen the full scale of what he is going to do to the productive capacity of the economy?

[Sajid Javid]

It was an excellent college—[Hon. Members: “Was!”] And it still is. I know many people who attend the college and they speak of it very highly. The important point is that all colleges, not just that college, have the resources they need to do their jobs. We will not put that at risk, especially as they continue to invest in apprenticeships, which are one of the surest ways to give people the training they want and to ensure they have skills that are wanted in the marketplace.

Banking Reform

Debate between Chuka Umunna and Sajid Javid

Monday 29th November 2010 Commons Chamber

[Sajid Javid (Bromsgrove) (Con)]

I thank the right hon. Member for Oldham West and Royton (Mr Meacher) for securing this debate, which is a valuable one to be having in the House. I draw the attention of hon. Members to my entry in the Register of Members’ Financial Interest, which is a legacy of my spending 18 years in the banking industry. Before Labour Members get a bit too excited by that revelation, as many have unfortunately done in the past, I should say that for the past three or four years I felt that the profession of banker was possibly the worst to have in the eyes of the public, but that was before I became a Member of this illustrious House.

The motion states that we want to

“prevent a recurrence of the financial crash”.

Obviously we are all united on that, but it is important that we examine the causes of the crash, which we could debate for a long time and go round in circles. I am sure that many rational people will disagree on the responsibilities of banks and bankers. I may have misunderstood the motion, but it seems to suggest that banks are entirely responsible for the financial crash. That is wrong and it does not do justice to Members of this House or to our constituents in preventing something like this from happening again.

The financial crash happened because too much money was chasing too few assets—financial assets or real assets such as real estate. There are three principal reasons for that, the first of which was that world financial reserves, particularly in the east, were growing at a substantial rate. Indeed, they continue to do so, as more people in the west consume goods from the east. To give just one illustration, China’s financial reserves in 1990 were $165 billion but today they are $2.65 trillion. Those reserves needed to find a home.

The second reason is that commodity prices have grown substantially, partly as a result of the growth of the east and other emerging markets, and that has led to a substantial increase in sovereign wealth funds, both in the middle east and in other markets. Those funds also needed to find a home, and they created a colossal wall of money when combined with the financial reserves.

The third reason is something that bankers have called the “Greenspan put”. Alan Greenspan became chairman of the Federal Reserve in 1987, just before the Wall street crash, and one of the first things he did when he found a problem in the financial markets and a potential crisis brewing was to lower interest rates as quickly and as substantially as he could. That happened again when the US Federal Reserve led the way after the dotcom bubble burst in 1991, again when Russia had problems and there were problems in Asia, and it has just happened again. Bankers have got used to that approach and it results in what the markets call a “put”, whereby they feel they can sell assets if things go wrong. That has encouraged bad behaviour and a moral hazard: the idea among many bankers of “heads we win, tails the taxpayers lose.”

In addressing these issues, we must not forget those key facts about what caused the crisis. However, bankers did play a significant role and there are things about banks that we need to examine. Although there are issues to address in respect of financial derivatives, I would not make that the key priority. The first thing to examine is the idea of retail banks and commercial investment banks acting as one entity, because that seriously needs to be looked at.

I started working in the banking industry in New York in 1992. Under the Glass-Steagall Act, which was in place at the time, the bank I worked for had to have a completely arm’s length relationship with its retail banking division. That made a big difference to the risks the bank took or even contemplated taking. That situation changed in the late 1980s in Britain, when the big bang took place and the implied Glass-Steagall arrangement disappeared, and it formally changed in the United States in 1999 when that Act was removed. It is vital to examine that. The second thing to look at is, as has been mentioned, banking capital itself.

[Mr Chuka Umunna (Streatham) (Lab)]

Would the hon. Gentleman be prepared to share his thoughts on whether we should return to a Glass-Steagall model, which I understand the Clinton Administration did away with when in office?

[Sajid Javid]

There are some considerable merits in that model and given what has happened we should consider it seriously. I hope that the Vickers commission does that.

Secondly, we should consider the banks’ capital requirements. It is right that under Basel III capital requirements should be lifted. The core tier 1 capital requirement will be lifted from about 2% for banks to about 7%. Some points are still missed, however. The focus is far too narrowly on the default risk of assets and we have strange incidences even with default risk—for example, under the new proposals industrialised sovereigns are still considered to be risk free. As we speak, Ireland’s 10-year Government bonds are trading at more than 11%, Spain’s 10-year bonds are trading at more than 6% and Germany’s are trading at more than 2.5%, but they are all treated as zero-risk weighted and no risk capital will be set aside. No account is taken of liquidity, either. One of the largest problems for banks over the past three or four years was lack of liquidity, but the capital requirements do not take full account of that.

One of the biggest mistakes that made Britain’s situation far worse than that of other countries was the change in regulation when Tony Blair’s Government first took office. The jobs of people at the Bank of England, who knew what they were doing, were taken over by people at the Financial Services Authority, who did not know what they were doing. I remember an FSA audit where the chief auditor of my credit derivatives book, which had a market value of more than €100 billion, was a 27-year-old with a degree in biology. It is no wonder that problems started to happen. We do not necessarily need more regulation, just smarter regulation.

There are many issues to consider that we could debate for a long time. Banking regulation is one such issue, but we do no service to our constituents if we merely focus narrowly on it when we consider the lessons of the financial crisis.