Countering Russian Aggression and Tackling Illicit Finance

Danny Kruger Excerpts

Wednesday 23rd February 2022 Commons Chamber

[Mr Baron]

That is a bit of a tenuous link. Let us be clear: an aggressor is going to consider invading a country regardless of what visas have been given in a third country. Having said that, I agree that we need to look at this, and I made that point clear when I first stood up.

We need to be clear that we need strong defence. One reason I opposed those recent interventions over the past 20 years is because I felt that they distracted us from the real business of countering traditional state-on-state threats. War should always be a means of last resort, once all other avenues have been exhausted, but the real danger was state-on-state threats, including Russia and, increasingly, an assertive China. We all know that jaw-jaw is better than war-war, but jaw-jaw is most effective when supported and backed up by strong armed forces, because potential adversaries then listen. After a decade of hollowing out our defence capabilities and cutting the number of soldiers, we need to get serious about defence and reverse those trends. The Prime Minister is right to say that we have had the largest increase in the defence budget since the end of the cold war—we are standing at about 2.4%, if we believe Government figures—but I suggest that we need to do much more. We still have the smallest Army since the Napoleonic times, if not before. We still have too few ships able to guard our aircraft carriers, and our air defences are thin. As a former soldier, I can promise the House that there is no substitute for boots on the ground. I buy the technology argument—everything about drones and how we have to be up to speed with cyber and all the rest—but there is no substitute for boots on the ground if we want to dominate ground. That is a simple fact.

I ask the Government to seriously think about this, but I also ask the Opposition to do so. For 20 years I have been in this place and I have banged on, together with others, on both sides of the House, about the need for increased defence spending. That has largely fallen on deaf ears. Some Opposition Members will remember that in 2013 I led the revolt from those on the Government Benches on the Bill that became the Defence Reform Act 2014, which was cutting regular troops and trying to replace them with reservists. With the help of the Scottish nationalists and Labour, we tried to get the Government to think again. Unfortunately, I was unable to carry a sufficient number of Conservative Members, but we came close. So I am not standing here being a hypocrite and suggesting this in a way to try to make party political points. I am asking the Labour party, the official Opposition, to do something. The establishment in this country still does not get it on defence. We need a substantial and sustained increase in defence spending, to act as a deterrent, not to be used in an offensive manner. Deterrence is the best way.

The Labour party has a very proud history in this area. It was a Labour Government who signed us up to NATO and who were determined that we had a nuclear deterrent. I suggest to the official Opposition that we need to start at 3% for defence spending but not tie this to a particular percentage of GDP, because GDP fluctuates. We need to start at 3% and then build on it, because we are entering an era where there is a battle for democracy yet to be had. I hope I am not being too dramatic when I say that. We need strong armed forces for that, and the Labour party, the official Opposition, has a role in this.

Having these debates is great, but we have had them so many times before about defence spending and other issues and interventions. If the Labour party was to say, “We are going to commit to a substantial and sustainable level of defence spending”, it would move the dial in the debate. The official Opposition would be surprised at just how much support there is on the Conservative Benches for a substantial increase in defence spending—well above the 2.4% figure we heard bandied about by the Prime Minister yesterday. The official Opposition have an opportunity to move the dial on this, and I encourage them to take it. This is an important issue on the doorstep, contrary to what many people suggest; people are proud of their armed forces. There is also an opportunity to be a force of good for the Union, as we are proud of our armed forces across the four nations of the UK.

I am conscious that others wish to speak, but may I briefly return to this point about the new era we have now entered with regard to the battle for democracy? We believed that democracy would sweep the field after the cold war, because it was blatantly obvious that it was the right thing, but democracy is a fragile concept. We fundamentally believe in it in this place, but let us never underestimate the number of oligarchs and totalitarian individuals out there—states, even—who want to overthrow democracy. We have to nurture, encourage and protect it. But what are we doing? We have a weak foreign policy when it comes to potential aggressors, and not just potential ones; when there is an invasion of a sovereign country we are debating quite petty sanctions. We need to step up to the plate.

I also suggest to the House that this is not just about hard power—quite the contrary, as the cold war was won largely because we won the soft power battle. We need to further finance our diplomatic sources and our diplomacy generally. One reason why I voted against the Libyan intervention, when I was the only Tory to do so and was very unpopular with my own party, was because we simply did not know what was happening on the ground. We did not have the diplomats there kicking the tyres and feeling the dust. We used to have great expertise in this area but we have hollowed it out, through cuts, and those cuts can be counterproductive. They can be a false economy. If we do not know what is happening on the ground, these decisions are much riskier. Satellites and technology take us only so far; we need experts on the ground.

[Danny Kruger (Devizes) (Con)]

I concur with what my hon. Friend was saying a moment ago about the need for the Labour party to commit to greater defence spending. Labour Members often challenge us about the need to increase development spending and I agree with them on that. He mentions diplomacy as well, and I wonder whether there is the opportunity for a cross-party agreement on sustained investment in our defence and our diplomatic service, and restoring development spending to 0.7% as soon as possible—and perhaps even going beyond it? I wonder whether there is an opportunity to increase all of our commitments to the international community and perhaps achieve a cross-party consensus.

[Mr Baron]

I thank my hon. Friend for the intervention, and I certainly think there is greater scope for cross-party consensus on these key issues. We come together in condemnation of Russia and events such as this, but we need also to come together on such things as defence spending and diplomatic spending.

Let me return to soft power. I am chairman of the all-party parliamentary group on the British Council, and I know that some Members on the Opposition Benches have served with the British Council. We work together in trying to promote the interests of the British Council, but let me cite a further example of where we are going wrong as a country. Last year, the Government failed to meet the £10 million shortfall between the British Council’s commercial activities—predominantly the teaching of English in the far east, mostly in China—and the money the Government supplied. That £10 million shortfall has resulted in the closure of 20 country operations. That is not global Britain or the furthering of the interests of soft power. The British Council is a key instrument of our soft power capability. We are a soft power superpower, but we should never take that for granted.

--- Later in debate ---

[Danny Kruger (Devizes) (Con)]

I thank and congratulate the Opposition on bringing forward this debate. It is a very, very important and timely matter. I am impressed by the unanimity that has been shown across the House in response to what is happening in eastern Europe and by the support that has been given to the Government’s measures so far.

The shadow Foreign Secretary said earlier that the world is watching to see whether the west meets this test, and he is absolutely right. The Foreign Secretary said recently that there has been a decade of drift in regard to Russia, and, sadly, that is true as well, but that is no longer the case. I applaud the measures that have been announced: the clampdown on the activities of the oligarchs in the UK; the suspension of banking; and the restrictions on the Russian state and Russian companies from raising debt in London markets.

What more can and should be done? Yes, we must take resolute action to get illicit Russian money out of the City. I was powerfully struck by what the hon. Member for Wallasey (Dame Angela Eagle) said about Companies House. From my constituency work, I have become very conscious of the deficiencies of the system there and the ability that fraudsters have to establish companies. There is also a danger from a security perspective, so action must be taken, and I am sure that the Government are hearing that.

Many Members and commentators have suggested that Russian trading should be suspended through the SWIFT banking system. I defer to others on that, but I do just observe the potential economic turmoil that that would induce and recognise that it might be necessary for us to experience pain in this country, even at a time when our own economy is fragile and when the cost of living is going up. We recognise that, because of the decade of drift that the west has allowed to take place in Russia, there may be economic pain in consequence.

[Bob Seely (Isle of Wight) (Con)]

Does my hon. Friend agree that SWIFT is a messaging system between banks, so cutting off other Russian banks from the messaging system is not quite the nuclear option that people suggest it is, although it would complicate matters?

[Danny Kruger]

As I said, I defer to others on that, but I thank my hon. Friend for that information.

The same applies to the impact on wholesale gas prices, which will naturally ensue as European countries in particular restrict their imports of Russian gas. That is necessary. Thankfully, we are not dependent on Russian gas to the same extent as our friends in Europe. I commend Germany for its brave decision to suspend Nord Stream 2. I hope that that will become a permanent commitment.

The Opposition accuse us of not doing enough. Of course there can, should and will be more steps taken, but I invite them to consider what they would be saying if we had shot off every measure possible all in one go, without consultation and without collaboration with our partners. They would be accusing us, no doubt, of precipitate, hasty action and of lack of partnership with our allies. We would probably be accused of Brexit Britain little Englandism, impotent sabre rattling, and trying to distract attention from political problems at home. They would be making those accusations if we were shooting off every possible measure in the book. Actually what we are doing is taking deliberate action. We should not mistake a measured approach for a lack of resolution. On the contrary, this is a steady, deliberate ramping up of the sanctions that are necessary, in partnership with our allies. This is the responsible way to proceed. It is the way that this Government proceeded when the Russian state attacked people on the streets of this country in Salisbury in my county of Wiltshire. It was the right action to take. It took a little while to convene an international response to that, but it was the right one.

What can we do beyond finance? I applaud the military commitments that have been made in recent months, and particularly those in recent weeks, including: the increase in the military support that we give to Ukraine; our commitment of further troops to Estonia and Poland; the increase in our RAF presence in Cyprus; and the dispatch of warships to the eastern Mediterranean and the Black sea. Those are all the right measures to take. Putin said rather preposterously that Russia was being encircled by NATO. That now will come true because of what he has done. I commend the Government from before this crisis for their increased funding—£20 billion extra—to our armed forces, which includes investment in cyber and in all the grey zone defences that we need to counter the sort of threats that Russia poses. I agree with what my hon. Friend the Member for Basildon and Billericay (Mr Baron) said a few moments ago. I cannot believe that we do not also need an increase in the number of men and women in uniform able to act as a deterrent to the sort of aggression that we are seeing. As I said in my intervention on him, as a nation, we need to increase development spending, diplomatic spending and defence spending.

I had the honour of meeting some of the soldiers going out to service part of Operation CABRIT in Estonia last year when they were training on Salisbury plain in my constituency. I want to take this opportunity to press for those soldiers to be awarded a campaign medal in recognition of their activities to defend Europe and the west as part of Operation CABRIT. Under the current circumstances, it is extremely necessary and appropriate to recognise that they are not just undertaking a training exercise; they are actually defending Europe and defending the UK. I hope that we will see a medal for our troops who are serving in eastern Europe and that we will increase our armed forces in the years to come.