Oral Answers to Questions

Debate between Dominic Raab and Stephen Doughty

Tuesday 2nd March 2021 Commons Chamber

[Dominic Raab]

I pay tribute to my hon. Friend for the great work she is doing locally but also for raising the issue of international access to the vaccine. She will know that the UK has contributed £548 million to COVAX AMC, which is the international mechanism that will secure over 1 billion doses. In relation to her virtual Kenya visit, the roll-out of the first deliveries under COVAX has now begun in Ghana and Côte d'Ivoire, and by the end of June, in 92 of these poorer countries, we want to see all the vulnerable receiving their vaccines. That is global Britain as a force for good.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

I welcome the news that the Foreign Secretary has just outlined about the COVAX deliveries in Ghana and Côte d’Ivoire; that is excellent. Tragically, we have seen 50,000 deaths in South Africa alone from covid-19, but we have also seen 409,000 deaths from malaria and 700,000 deaths from AIDS-related causes. An estimated 1.8 million could die from tuberculosis in 2020, and there are Ebola outbreaks in Africa at the moment. Vaccines, whether for covid or other diseases, only work when there are the strong public health systems to deliver them, with the nurses, doctors and cold chain and diagnostic capacity. We have a moral duty to do our fair share, and it is in our global common interest. Will the Foreign Secretary be maintaining our overall bilateral and multilateral health spending, or will it be cut?

[Dominic Raab]

The hon. Gentleman is right to pay tribute to the work that the UK has done internationally not just on COVAX and the vaccine for this pandemic but on TB, malaria, polio and a whole range of other areas. We have had to make the difficult decision on the 0.7%, and the allocations will be published in due course, but we have been very clear that public health is the No.1 priority to be safeguarded across the piece.

Official Development Assistance

Debate between Dominic Raab and Stephen Doughty

Thursday 26th November 2020 Commons Chamber

[Dominic Raab]

Well, where to start with that?

The hon. Lady referred to a range of different issues. She referred to the UK’s work on disease and girls’ education. We entirely agree. These are total priorities, and that is why I set out the priorities—I appreciate that her response was written before she listened to what I said—so that I could give her and the House the reassurance that actually those are two areas that we will safeguard and prioritise. [Interruption.] No, we said we will safeguard those priorities.

The hon. Lady asked about climate change. As I made clear, our first priority will be to prioritise measures to tackle climate change and protect biodiversity, and we will maintain our commitment to double the international climate finance, which I agree is very important as we go into COP26.

The hon. Lady asked about our international partners. Of course our international partners, whether they are non-governmental organisations or the heads of the international organisations, will want as much generosity as possible. We understand that. I spoke to the Secretary-General of the United Nations, the president of the World Bank, and Dr Tedros at the World Health Organisation yesterday. They understand the financial challenges and the health challenges, and they know that we will be a stalwart, leading member of the international community as a force for good in the world, notwithstanding the pressure that we and many others will now face.

The hon. Lady asked about the legislation. We will bring that forward in due course. Obviously we want to make sure that it is as well prepared and carefully thought through as possible. [Interruption.] She says that we do not have to. On the one hand, she has said that we are breaking the law and changing our mind on the law—[Interruption.] It is very clear under the legislation. She should go and check—

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

It is temporary.

[Dominic Raab]

The hon. Gentleman says that it is temporary. That is not what the legislation says: he should go and look at it very carefully. [Interruption.] Well, he has not got this quite right. We have taken advice very carefully on this, and it is very clear that if we cannot see a path back to 0.7% in the foreseeable, immediate future, and we cannot plan for that, then the legislation would require us to change it. We would almost certainly face legal challenge if we do not very carefully follow it.

On the hon. Lady’s question about the 0.7%, it will still apply this year.

The hon. Lady criticises the Government for the choices that we have had to make in the face of a global pandemic and a financial emergency. It is not clear to me what choices Labour would make or that she would make. [Interruption.] Was she suggesting that we cut the money—

--- Later in debate ---

[Dominic Raab]

The truth is that, in this spending review, the Labour party is defined by its total inertia in the face of the difficult decisions we have had to make. I am afraid that that gives it very little credibility when it comes to the SR.

When it comes to 0.7%, the House should recall that the Labour party has history on this. Members across the House, particularly the more long-standing ones, will remember that it was a Labour Government under Harold Wilson back in 1974—the year I was born—who first set the target of 0.7%. In the 46 years since—the whole of my lifetime—no Labour Government have ever hit 0.7%; not in a single year.

The hon. Lady talked in hyperbolic language about the damage that we will do with a shift to 0.5% and a £10 billion ODA budget. May I remind her that in the 13 years of the last Labour Government, not only did they never once hit 0.7% in any year—[Interruption.] The hon. Member for Cardiff South and Penarth (Stephen Doughty) does not like it. I will come to him in a second. The last Labour Government only ever hit 0.5% in two years out of 13.

The House need not take my word for it. The shadow Africa Minister, the hon. Member for Cardiff South and Penarth, was a Spad in DFID under the last Labour Government—

[Stephen Doughty]

And it went up.

[Dominic Raab]

The hon. Gentleman says that it went up. That Government spent, on average, 0.36% of GNI on ODA. With a record like that, the hon. Gentleman, rather than chuntering from a sedentary position, should stay quiet on this subject. On the Government Benches, with our record, we will take no lectures from the Labour party when it comes to ODA.

Oral Answers to Questions

Debate between Dominic Raab and Stephen Doughty

Tuesday 24th November 2020 Commons Chamber

[Dominic Raab]

The hon. Gentleman is absolutely right. As my hon. Friend the Member for Tewkesbury (Mr Robertson) made clear, Ethiopia has been a relative success story lately, but there is a real danger for the people of Ethiopia and he has highlighted the risks of spillover to Sudan, Somalia and Eritrea, which will be very damaging not only for people in the region, but for wider equities. As I say, I have spoken to regional leaders. I will speak to the Deputy Prime Minister of Ethiopia soon. Of course, we will be engaging with the Americans. I was in Berlin talking with the E3 and our European colleagues. We have expressed our concern, and we are doing everything we can to bring peace and a de-escalation of the conflict.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

The war and famine in Ethiopia in the 1980s are seared into the memories of the British people and the world, and yet again we are on the brink of another tragedy for the people of that wonderful country: hundreds of civilians hacked to death, tens of thousands of refugees, hundreds of thousands cut off from assistance, women and children caught in the violence between rebels and a Government now threatening to shell a city. So can the Foreign Secretary say why it has taken until today for the United Nations Security Council to meet on this? What more are we doing to secure humanitarian corridors and access for independent human rights monitors? Does he not agree that this is another reason why it would be the wrong time to cut our 0.7% commitment to humanitarian assistance?

[Dominic Raab]

I share the hon. Gentleman’s horror at some of the reports of the civilian casualties. We take this incredibly seriously, energetically and actively at the United Nations. Let me reassure him that UK funding is already helping those in urgent need of assistance. In Ethiopia specifically, the UK funds the World Food Programme, the United Nations High Commissioner for Refugees, UNICEF and the UN Office for the Co-ordination of Humanitarian Affairs.

DFID-FCO Merger

Debate between Dominic Raab and Stephen Doughty

Thursday 18th June 2020 Commons Chamber

[Dominic Raab]

I thank my hon. Friend, the Chairman of the Foreign Affairs Committee. I know that he has looked at this very closely. We have discussed the integration of foreign policy on many occasions. That is absolutely essential, and I agree with him entirely that we want to keep not just the funding but the expertise, the know-how, the branding, the soft power—the elements that make the United Kingdom a development superpower—in the new structure. However, the reality is, and I thank him for his agreement on this, that we have an opportunity to do even better if we focus our aid and our foreign policy, and indeed, we are more aligned on trade and defence and wider security matters in a more focused way. That is the exciting opportunity that this merger allows, but I agree with him entirely on the point that he raised.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

I thank my hon. Friend the Member for Rotherham (Sarah Champion) for her important urgent question.

“The effectiveness with which DFID is able to deliver aid is because the Department has decades of honed experience in understanding the most effective and targeted ways of spending taxpayers’ money”—[Official Report, 10 June 2020; Vol. 677, c. 276.]

—not my words, but those of the Secretary of State for International Development, last week, who now appears to have simply been completely overruled.

Scrapping a Department that is crucial to global vaccine development provides health care and aids the world’s poorest in the middle of a global pandemic is irresponsible and counterproductive and wrong. The Government should be totally focused on steering our country through the challenges we face right now. We have had one of the highest death tolls from covid-19 in the world. Millions of children are out of school and face the worst unemployment crisis in a generation, which will hit young people and the lowest-paid the hardest; and these challenges are global too.

Instead, the Prime Minister has decided to undertake a large-scale restructure, which will cost millions of pounds of public money, and he will abolish a Department that is the most transparent, the most effective and a global champion at delivering value for money for British taxpayers. Instead, UK aid will be spent through Departments, which, TaxPayers Alliance found,

“neither”

contribute

“to poverty reduction or the national interest.”

So can the Foreign Secretary tell me: when did the Prime Minister decide this matter? Why did he not wait for the conclusion of the integrated review? Did the decision go through the National Security Council? Which civil society and development partners were consulted? How much will the reorganisation cost and what legislative changes are planned? Will the DFID budget be ring-fenced in the new Department?

The Foreign Secretary also mentioned trade envoys. What role now for the Department for International Trade? Multiple former Prime Ministers, from both sides of the House, have criticised the decision. A former Conservative Secretary of State for International Development said:

“Most British diplomats lack the experience and skills to manage 100 million pound development programs…Trying to pretend these two very different organisations are”

the same

“damages both.”

Laurie Lee, the chief executive of Care International, said,

“this is the worst decision on aid since the Pergau dam scandal”

and

“In the middle of a national crisis, the Prime Minister has chosen to spend time, focus and effort on fixing a problem which does not exist…it’s not too late…to think again.”

This is not global Britain. This retreat from the global stage is a mistake, and we firmly oppose this attempt to abolish the Department. It will not only have a life-threatening impact on the world’s poorest and most vulnerable people, but it will reduce our ability to make the world safer, fairer and better for all.

[Dominic Raab]

I thank the hon. Gentleman, and welcome the opportunity to debate this issue with him. He asked a number of questions, including on timing. The covid crisis has required the Government to act and operate in ways that we have not done before—

[Stephen Doughty]

indicated dissent.

[Dominic Raab]

He is shaking his head before he receives the answer—I thought we were going to have a sensible debate about the pros and cons of this change. I listened carefully to what he said, so he might do me that courtesy in return. We had an integrated approach, and we brought the alignment as far as we conceivably could on covid, the repatriation of nationals, the hunt for a vaccine, and keeping supply chains open. However, this situation has brought to light and made clear to us how much more effective we can be if we integrate through this merger.

The hon. Gentleman asked when the Prime Minister made the final decision. Obviously he spent weeks considering it, but he announced the change on Tuesday, swiftly after the conclusions had been resolved. The hon. Gentleman asked whether the aid budget will be protected, and we are committed to the figure of 0.7% of gross national income—I think that reassures those who are concerned that somehow the aid budget will be cut as a result of this change, which is not true.

The hon. Gentleman asked about DIT and trade, and as the Prime Minister made clear on Tuesday, we will ensure that our trade envoys are responsible for formally reporting to ambassadors and high commissioners in their respective countries. More broadly, the International Trade Secretary, who answered questions in the House a few moments ago, is doing an exceptional job in striking those free trade deals, which are a great opportunity for businesses and consumers in this country. That will continue. The hon. Gentleman also mentioned third party support. There has been widespread agreement on this from the Chair of the Select Committee, from my predecessor as Foreign Secretary, and from the HALO Trust, which is a charity that deals with landmines and welcomes this move.

I will leave the hon. Gentleman with one thought: of OECD developed countries, only one has a separate Ministry of Development. Indeed, the tide has been in the direction of integrating foreign policy with aid and development, as that is the progressive thing to do. I understand why the Labour party, which set up DFID, feels proprietorial about it, but what matters is the effectiveness of foreign policy. What we have learned during coronavirus is that this merger will ensure that we can be as effective as possible, and deliver more efficient value for taxpayers’ money.

Covid-19

Debate between Dominic Raab and Stephen Doughty

Tuesday 17th March 2020 Commons Chamber

[Dominic Raab]

My hon. Friend rightly raises the issue of employees in that sector. We are engaging closely with the big employers around the world. Those individuals are in—I say this carefully—in a relatively more comfortable position than others who are travelling for a short period or temporarily, so the priority has been the most vulnerable or those who might find themselves at risk of being stranded. That is why we have given this advice today, but my hon. Friend is right, and we are engaging with substantial employers overseas to see how we can work together to provide the best support for our constituents.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

I pay tribute to FCO staff, including the one who took my call at midnight last night to deal with my constituent’s son, who is trapped in Guatemala City, where the British embassy appears to be closed and no commercial flights are operating. I urge the Foreign Secretary to change one thing that came out of that call. The FCO does not appear to be taking details of British citizens who are trapped abroad, including whether they have any special needs, medical needs or conditions. Without that information, we will not be able to triage for emergency repatriation flights, emergency assistance and so on. Will he ensure that the FCO starts taking that information, to build up a database, so that we know exactly how many British citizens are trapped and where, and what their conditions are?

[Dominic Raab]

I thank the hon. Gentleman for his warm words about the FCO’s efforts and the practical advice he has given us; we will certainly take that back. One point I will mention is that we are not talking about tens of thousands—we are talking about hundreds of thousands abroad. We need to work up as granular a picture of the vulnerabilities as possible, but we also—this is a contributing factor to the change in the travel advice—need to give a clear message, given the scale of the challenge and the unprecedented nature of covid-19, that people need to be realistic about what we can do.

Joint Comprehensive Plan Of Action

Debate between Dominic Raab and Stephen Doughty

Tuesday 14th January 2020 Commons Chamber

[Dominic Raab]

I thank my hon. Friend for his question. We obviously keep the security of our armed forces under constant review. We do the same in terms of shipping in the Gulf, and particularly the strait of Hormuz. We have amended our travel advice recently, and we ensure that we have the appropriate level of security arrangements around our embassy and our diplomatic personnel.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

The Foreign Secretary is right to highlight the importance of diplomacy in resolving this crisis. Can he update us on the situation of the British ambassador to Iran, particularly given the fact that in the last couple of hours it has been reported, including in the Financial Times, that Gholam-Hossein Esmaeili, who is a representative of the Iranian judiciary, has called for him to be persona non grata and expelled from the country? Does the Foreign Secretary agree that that is completely unacceptable?

[Dominic Raab]

We have had no formal indication of that description. It would be deeply regrettable if that were the case. We need to keep the diplomatic channels open, and futile gestures like that are not going to resolve the problems that the regime in Tehran face.

Leaving the EU: Meaningful Vote

Debate between Dominic Raab and Stephen Doughty

Monday 22nd October 2018 Commons Chamber

[Dominic Raab]

All I would gently say to my hon. Friend is that there is nothing meaningless about this vote. It would be one of the most ground-breaking decisions that the House has had to make for a generation: the decision on whether or not to accept a deal negotiated by the Government with the EU that works for all parts of the United Kingdom. I hope that at that point we would have some consensus in the House on a decision to accept the deal and move forward to the implementing legislation.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

Let us cut to the chase. The Government have tried to gag Parliament at every turn in this process. Now they have a choice. The position that the Secretary of State is trying to take is, essentially, that it is no deal versus the deal that the Government have. That is not politically, constitutionally or morally sound. Further to the question from the right hon. Member for Loughborough (Nicky Morgan), will the Secretary of State tell us whether he took legal advice, when he took it, and who commissioned it? Was it him?

[Dominic Raab]

I have not commissioned any specific, bespoke legal advice on the point the hon. Gentleman raises, but we have been informed right the way through about the implications. Section 13 of the withdrawal Act was informed by legal advice not just from Government lawyers, but from all the lawyers across the House. It was scrutinised very carefully and at length in Committee, and it will give effect to what the House voted through in the Act.

EU Exit Negotiations

Debate between Dominic Raab and Stephen Doughty

Tuesday 9th October 2018 Commons Chamber

[Dominic Raab]

I always listen very carefully to my hon. Friend. He makes his case in a powerful way. I would still suggest to him that if we are looking for the right balance between making sure that we protect our precious Union, preserving our frictionless trade with the EU and also liberating the country to trade more energetically with the growth markets of the future, then the proposals that we have set out are the only credible plans that deliver on all those objectives. That is why we are pursuing them.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

In contrast to some of the suggestions coming from parts of the Government Benches about a minimalist free trade-style agreement, the director general of the CBI told the BBC recently that a minimalist agreement would introduce friction at borders, would not solve the Irish border question and would damage our supply chains. Will the Secretary of State say whether he agrees with the director general of the CBI and therefore rule that out as an option?

[Dominic Raab]

We cannot rule out leaving with no deal, because we do not have full control of the EU, but I addressed the CBI president’s committee recently, and the hon. Gentleman will know that the CBI is fully supportive and wants to see the Government’s approach as laid out in the White Paper proposals delivered. He should get behind that.

EU: Future Relationship White Paper

Debate between Dominic Raab and Stephen Doughty

Thursday 12th July 2018 Commons Chamber

[Dominic Raab]

I hope that I can reassure my right hon. Friend, because we want the common rulebook to ensure that manufacturers can continue to produce one product for both markets, preventing dual production, but the common rulebook will apply only to the extent that it is necessary to avoid friction at the border.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

Paragraph 6 of the conclusion states:

“If the House of Commons supports a resolution to approve the Withdrawal Agreement and the Future Framework, the Government will bring forward the Withdrawal Agreement and Implementation Bill to give the Withdrawal Agreement legal effect in the UK.”

It says nothing about what will happen if the House of Commons does not approve the withdrawal agreement. What does the Secretary of State believe will happen in those circumstances? Given his past views, many of us suspect that what he will do is drive us towards a no-deal situation.

[Dominic Raab]

Let me reassure the hon. Gentleman. As set out in my earlier remarks, and indeed in the White Paper, we are striving, in good faith and with good will, with some innovation and principle, but also with a practical approach, to get the best deal for the UK, but one that is also likely to be acceptable and achievable with our EU partners and friends. We are preparing for every eventuality, but I can reassure him that, as I have always said, the optimum outcome will be to deliver a deal that is good for this country and good for the EU.

Budget Resolutions

Debate between Dominic Raab and Stephen Doughty

Thursday 9th March 2017 Commons Chamber

[Mr Raab]

I welcome the acceptance of the official figures at least, which was implicit in what the hon. Lady said. I accept that there are cost of living pressures, not least given that inflation is creeping up, but let us face it: inflation is still well below the Bank of England’s headline 2% target. I will address cost of living challenges and what we should do about them, but we live in the real world and we should not chase the Labour party leadership’s socialist pipe dreams, because they will do nothing to deal with cost of living pressures other than precipitate a lack of confidence and investment in the economy and falling living standards as a result of increasing unemployment.

I thought that the hon. Lady was going to intervene to welcome Dyson’s investment in a new 517-acre research facility in Wiltshire. Jaguar Land Rover is investing in creating the new Velar model, which will be exclusively manufactured in Solihull. The wave of investment is coming right across the country. There is a resilience and strength in the British economy, and fresh investment and enthusiasm about the opportunities that lie ahead. Having said that, I want to be careful not to allow any sense of complacency to creep in.

This Budget is all about the whole package. In what I like to think is my still relatively limited time in this place, I have never known a Budget that has not involved compromise. Trying to put together a package is the serious business of government. Hon. Members of all parties can be quite quick to allow the positive stuff that we like, whether that is taxation cuts or extra investment—I have been guilty of that in the past—but we also have to ’fess up and face up to the difficult decisions that have to be made. That is the serious business not just of politics, but of government. Look at what the leader of the Labour party said yesterday; he and his party are so unfit to govern because they are not willing to face up to those difficult decisions.

[Stephen Doughty]

The hon. Gentleman talks about not being positive enough about different things but, a moment ago, he tried to present quite a false impression of the inflation rate. The PriceStats indicator, which is actually a much more accurate indicator of the inflation rate, suggests that inflation has potentially risen to 3.3% in recent weeks. As my hon. Friend the Member for Wallasey (Ms Eagle) pointed out, that is certainly being reflected in the sorts of pressures that constituents come to us with. Does the hon. Gentleman not recognise that inflation is, in fact, potentially much higher than he suggests?

[Mr Raab]

I love to have a good haggle over stats, but the fact that the hon. Gentleman said that the situation is “potentially” worse than I indicated suggests that he does not have full confidence in his intervention. The raw truth is that I am citing the consumer prices index for inflation, which is the one that everyone uses, from economic forecasters to the Treasury and Ministers. If the hon. Gentleman wants to use a different one, it may, in fairness, be him who is trying to be selective.

Let us look at what the Government proposed and brought forward for the economy in this Budget. We continue to cut corporation tax, which is critical for encouraging businesses to come here and invest, and, from looking at the report from the Centre for Policy Studies, is also a good way of generating additional revenue because it is a dynamic tax cut. We want to create more revenue not just to spur business growth, but to pay for the precious things such as social care that we want in our society and in our public services. We need a strong economy to ensure that we remain at the most cutting edge of our competitiveness. I am afraid that the Achilles heel of the current Opposition is that they have no sense of what credible economics look like.

On top of corporation tax, I was delighted to see the Government address the issue of business rates, and to see the £400 million package to ease the transition towards reform of the wider business rates system particularly to ensure that smaller businesses on the high street are not unduly affected or penalised by the changes. I know from my own experience—particularly in a constituency such as Esher and Walton, which is really a constellation of towns and villages with a strong high street, but with a disproportionate number of smaller business—that the measures to ease the business rates transition will be well received. We want to ensure that the high street is able to compete with online businesses, and I was pleased that the Chancellor directly addressed that in the Budget yesterday.

As well as the measures to stimulate the economy and to ensure that we are at our most competitive, the Budget includes significant investment in skills. There has been a record level of investment in schools under this Government, and we have seen fresh money allocated to new schools and existing schools. I listened very carefully to the hon. Member for Wallasey. The truth is that 1.8 million more children are studying in state schools that are deemed good or outstanding than in 2010, when the last Labour Government were in office. That is probably the accomplishment of this Government of which I am most proud. The question now is not how we rest on our laurels, but how we build on that accomplishment.

Yes, we want to ensure that with a new wave of grammar schools the academically gifted—whether they come from the humble background of a council estate or a rural backwater—have the opportunity to make the very best of their talents. We also want to ensure that the bright but not necessarily bookish have a vocational route, through technical training or otherwise, so that every child who has talent, works hard, grafts and has something about them—no matter what their disposition—can make the very best of their individual abilities. That is what is so positive about the package brought forward by the Government yesterday, with T-levels as well as the new money going into grammar schools and existing schools.

Aside from schools and education, which are important for skilling up our economy, driving forward social mobility and ensuring that we build the vision of the meritocratic society as well as the enterprise economy, money has been allocated to social care because we have a Government who are willing and able to take difficult decisions. An extra £2 billion will go into social care on top of the £10 billion we will invest in the NHS by 2020. My constituency of Esher and Walton is a classic Surrey constituency in the sense that we have an ageing population, which is good news because people are living longer, but we need to ensure that we can cater for conditions and healthcare needs. Although there are many longer-term questions about financing and what model of social care we have, the extra money going into social care will be a crucial first step. I know, from looking around at the pockets of elderly poverty even in a relatively affluent constituency in Surrey, how important it is to ensure that we have that support, but that support is only there because we have a Government who are willing to make difficult decisions.

The hon. Member for Feltham and Heston (Seema Malhotra) made an intervention about the cost of living, which is a critical issue to address. The reality is that this Government are raising the national living wage to £7.50 an hour and have taken 3 million of the lowest paid out of income tax. Let us be very clear that for the average taxpayer, that is now the equivalent of £1,000 extra in their pockets each year as a result of the difficult decisions that a responsible Government are able and willing to make. Further measures in the Budget deal with tax-free childcare, and the doubling of free childcare for working parents with three and four-year-olds. I am not sure that I am eligible, but I do have a two-year-old and a four-year-old. As a member of a two-salary couple and team, I know the importance of such support, and I welcome it.

Difficult decisions are made in Budgets. There are issues and points in this Budget that I did not like much, but the truth is that we have to look at Budgets in the round and as packages. I will be honest that I struggle with the changes to national insurance for the self-employed. I am in the business of cutting taxes, not raising them, particularly for the entrepreneurial classes, but we need to know how we are going to fund everything we want to do in the Budget. That is the challenge that any responsible Government and, indeed, any credible Opposition, have to face. The advantage we have is that we will have a separate free-standing piece of national insurance legislation. The Minister, who is incredibly assiduous and very attentive to the concerns raised by hon. Members in this Chamber, will want to ensure that we get the package for national insurance right.

The Chancellor has raised the issue of the lack of parity between the way in which the employed and self-employed are treated. Of course, there are advantages and disadvantages to both statuses, and it is absolutely right to ensure the right, equitable treatment for both. I do not want us to penalise to entrepreneurial people in our society but, at the same time, I want to ensure that we have a system that is fair. Conservative Members must be extremely mindful that we satisfy not only the letter, but the spirit of our manifesto commitments. The advantage of having this free-standing legislation—I can see the Minister scribbling away—is to ensure that we get the right balance on this sensitive issue.

[Stephen Doughty]

Will the hon. Gentleman give way?

[Mr Raab]

I want to make one more point about the other aspect of the Budget that I struggled with a little bit—cutting the dividend-free income for savers. We have talked a lot in this Chamber and in the Government about the importance of encouraging people to save, given the challenges of debt, credit and household debt more generally. I want to ensure that we are not sending the wrong message with this change, when we actually want to incentivise and encourage savers.

I am therefore very honest and upfront about the challenges. The problem is that all the things we want—from the extra money for social care for the vulnerable, to the extra money for skills to drive forward social mobility, to extending the personal allowance to cut income tax—have to be paid for. I welcome, support and reinforce the Government’s inclination to face difficult decisions head-on and to make sure that we get the balance right, rather than just having a Budget that satisfies newspaper headlines but does not stand the test of time. The Government therefore have my support, and I know that they will want to look at the nuances of some of these measures.

In contrast, I was very struck by the speech from the leader of the Labour party yesterday, because it did not put forward any credible alternative. It rather felt like he was tilting at socialist windmills—like he was somehow lost in a field ranting at the wind. The tragedy for the Labour party is that, on some of these issues, where there are genuinely choices to be made, it has no credible alternative. That is what I think the public will see: a Government bracing themselves and taking difficult decisions, and a Labour party, under its current leadership, that has talked about £500 billion of extra spending that it cannot fund.

I pay tribute to the hon. Member for Nottingham East (Chris Leslie), the former shadow Chancellor, who rightly pointed out that satisfying those spending commitments would require us to double income tax, double national insurance—there was no mention of that from Labour Members—double council tax and double VAT as well. I am not sure, therefore, that Labour Members are really in a position, in the absence of a credible alternative, to start picking holes in one or another aspect of the Budget put forward by the Government.