Budget Resolutions

Emily Thornberry Excerpts

Monday 13th March 2017 Commons Chamber

[Emily Thornberry (Islington South and Finsbury) (Lab)]

Let me start by saying that, like many other Members, it was my privilege this afternoon to attend the service of celebration for the Commonwealth at Westminster Abbey, in the presence of Her Majesty the Queen. In the context of tonight’s debate, it was a reminder of the powerful and historical ties that Britain enjoys all over the world; we are a country that will always face outwards and never turn in on ourselves, and, like the Secretary of State, I hope that at next year’s service we will have another member of the Commonwealth present, as a democratic Gambia completes the process of re-admission.

I thank the Secretary of State for opening this evening’s debate on the Budget and Britain’s place in the world. It is an issue of vital importance, and yet one that, it is fair to say, has not been centre stage in the five days of the debate on the Budget. If someone had told us last summer that going into article 50 week the Prime Minister and the Chancellor would be at each other’s throats, at war through the media, and engaged in a desperate blame game, while the Secretary of State for Foreign and Commonwealth Affairs would be sent into the television studios to act for the Government as the voice of calm and unity, no one would have believed them. However, if this is indeed to be the Foreign Secretary’s new role—if he is going to be the new Willie Whitelaw figure, or, dare I say it, the new John Prescott—I congratulate him and wish him the very best of luck in the future.

Of course, there will be some unkind souls who look at the row between No. 10 and No. 11 and think it is exactly what the Secretary of State needed this weekend. In their cynical minds, had it not been for that row, much more attention would have focused on Sunday’s real heavyweight contest, the one the public really wanted to see explode, the one between the two Tory blond heavyweights: Hezza versus Bozza; Tarzan versus the Zip-Glider; the Dog-Killer versus the Dave-Slayer. We were denied a true fight, but we were left with these immortal words from Lord Heseltine:

“When I listen to Boris…he has turned the art of political communication into a science”

of using

“waffle, charm, delay, anything to stop actually answering questions.”

In the rest of my speech, I intend to ask some very straightforward questions on the Budget and Britain’s place in the world, and I hope that the Secretary of State will be able to answer them without waffle or delay, and with no more charm than he feels is absolutely necessary.

It is striking that we are here to debate a Budget that has almost nothing to say about Britain’s place in the world, and with even less to offer for it. I am sure that we could all have predicted some of the rhetoric that we have heard from the right hon. Gentleman tonight about re-entry into world markets, a truly global Britain and an active global Britain. I predict that we will hear more about “brand Britannia” and terms such as “dynamic”, “agile”, “cutting edge”, “global powers”, “global reach” and “global influence”, and about the yacht and exporting boomerangs and so forth—but the question is this: what is the strategy for achieving all that ambition, and how does the Budget provide the resources to back it up? So far, we have seen no evidence of either.

It is not enough simply to want a relationship with Europe that has all of the benefits and none of the costs, and to be a leading global power at the same time, or to say, like Tinkerbell, that all we have to do to make it happen is believe that it is possible. Indeed, the right hon. Gentleman almost seems to be implying that if we do not believe, or if we ask awkward questions, somehow these things will not happen, and that fairies will start falling from the skies.

It has been said in this debate—no doubt it will be said again—that the Government are meeting their commitments to spend both 2% of GDP on defence and 0.7% on development, but while these seem like clear commitments, when we scratch the surface there are many unanswered questions, about how funding is split between the Foreign and Commonwealth Office, the Ministry of Defence and the Department for International Development, and about how, where, why and on what this money is actually spent.

It seems likely that a large part of the Foreign Office budget over the next few years will come from funding streams that are nominally shared across Departments, most of them with blandly unobjectionable names such as the conflict, stability and security fund and the prosperity fund. The idea of shared funding is perfectly valid in principle, but we need to know how these funds will be used by the Foreign Office. How much will be classed as “aid” spending, and how much as “defence”, and, for that matter, how much will be classed as both? We need to know why there is so little transparency on this issue, and what kind of oversight there is to make sure that these funds are used responsibly. One might, if one was of a suspicious frame of mind, even conclude that the Government are being wilfully opaque in this matter, but I am sure that the Secretary of State will bristle at the very suggestion, and will want to do all he can to dispel such a thought from the debate.

Of course, the reliance of the Foreign Office—perhaps the over-reliance—on funding from outside its budget settlement is really just symptomatic of a much larger and much more damaging trend under this Government. Unlike defence or overseas aid, our diplomatic service lacks the financial security of a politically or legally binding spending target, and I am sorry to say that it shows. Of the three Departments that share most of the responsibility for “Britain’s place in the world”—the Foreign Office, the Ministry of Defence and the Department for International Development—the FCO’s budget accounts for just 3% of the combined total, despite the fact that it is every bit as essential as the other two.

I am sure the right hon. Gentleman saw the Financial Times on Friday, which highlighted the real change in Departments’ resource budgets between 2016-17 and 2019-20. It is no surprise—there was a great deal of fuss about this—that there has been a cut of 37.2% to Department for Communities and Local Government budgets, but which Department has the largest cut of all? It is the Foreign and Commonwealth Office, which has a minus 38.1% change to its budget. The Under-Secretary of State for Foreign and Commonwealth Affairs, the hon. Member for Bournemouth East (Mr Ellwood) may shake his head, and if I am wrong, he should please tell me. I would be interested to see him go into battle with the Financial Times on this matter.

The Department’s budget is already very small, and it comes as no surprise that these cuts have had serious consequences for our standing in the world and for our global reach and influence. To start with, there has been a loss of expertise. We have seen the Government repeatedly being caught by surprise on events of great global significance such as the Arab spring, the crisis in Ukraine and the attempted coup in Turkey. There has been a hollowing out of expertise in these critical areas, not to mention a loss of skilled linguists. If the Secretary of State can tell us what progress has been made on recovering Russian and Arabic language capabilities, for example, I should be very grateful.

[Mike Gapes]

My right hon. Friend is making a powerful case about the hollowing out of the FCO’s budget. On the question of linguists, has she seen the report on Russia from the Foreign Affairs Committee that we published last week? It describes the lack of expertise in the FCO for looking at Russia. Does she agree with me and the Committee that the FCO needs more resources if we are to confront and understand the problems being caused by Russia’s behaviour towards its neighbours?

[Emily Thornberry]

It is because I have read that report that I mention Russian language capabilities. In my view, the reports produced by the Foreign Affairs Committee are thoughtful and informative, and I recommend them to the Secretary of State. The Committee has raised a number of flags that need to be carefully considered, because changes are happening to our precious Foreign Office and we are losing capabilities that it will be very difficult to redevelop.

[Mr Stewart Jackson (Peterborough) (Con)]

The right hon. Lady is making a reasonably cogent case—[Hon. Members: “Ooh!”] She is most welcome—

[Mr Jackson]

That is a rare phenomenon in respect of the right hon. Lady, sometimes, Madam Deputy Speaker. On a serious point, is it not only fair to record that those of us who occasionally travelled to central and south America witnessed a shrinking of our footprint and our soft power as the previous Labour Government closed many of the embassies there? We also downgraded the Chevening scholarships. This is something that we now need to review urgently as we go forward post-Brexit.

[Emily Thornberry]

I am surprised to find myself agreeing with the hon. Gentleman to the extent that I do. It is important that we should stop and have a review. We need to look carefully at the 38% cuts that are being implemented by his Government at this crucial time for Britain. That is the point that I am making in this Budget debate. I believe that these issues need to be seriously addressed, and questions and answers about haggis are not sufficient when it comes to dealing with cuts of 38% to the Foreign and Commonwealth Office.

It is not just language skills that have suffered. Let us consider BBC Monitoring, a vital service that monitors and translates foreign news reports and serves as an indispensable source of intelligence for Government Departments, including the Foreign Office. By transferring the responsibility for its funding from the taxpayer to the BBC itself, the Government have left BBC Monitoring open to cuts, and last year saw the announcement of 96 job losses and the closure of 20% of its posts overseas. Is that responsible behaviour, at a time like this? Cuts such as those will continue to have effects as incalculable as they are far-reaching.

It turns out that what a Government choose to fund, or not to fund, can tell us a great deal more than just the short-term spending priorities of the Government as a whole. For the Foreign Office, those decisions can identify the most basic principles underlying the Government’s foreign policy approach. For perhaps the best example of that, we need look no further than the downgrading of human rights as a priority for the Department. They are now considered far less important than the so-called prosperity agenda— [Interruption.] I hear people saying that that is entirely untrue. Let me pray in aid the permanent secretary to the Foreign and Commonwealth Office, who has said precisely that. That decision has been confirmed as a more or less direct consequence of the cuts imposed by the Government.

It was not so long ago that a Tory Foreign Secretary, William—now Lord—Hague, was able to say with a straight face that there would be

“no downgrading of human rights”

under his Government. He argued that it was neither in our interests nor in our nature to have what he called a

“foreign policy without a conscience”.

I could not agree more, and he must surely be sharing our disappointment to see a Tory Foreign Secretary and a Tory Prime Minister practically tripping over each other to cosy up to the likes of Donald Trump. We used to think that there were some world leaders who would always unite the opinion of this House, and that Members on both sides would always have the courage to speak out against those who did not share our values. These days, the Government’s values are obscure, to put it politely, beyond being in favour of trade, so the question is not just one of how much the Government are prepared to spend on the world-class diplomatic service that they want, important though that is; it is also a question of what they are prepared to do with the resources that they have.

[David Rutley (Macclesfield) (Con)]

The right hon. Lady is making her points from the Opposition Front Bench, but does she not agree that the Government have made important strides on freedom of religion or belief? They held a conference a few months ago to help to promote those issues, not just in the Commonwealth but globally. As a member of the all-party parliamentary group on international freedom of religion or belief, I really appreciate that sort of action. It is very important, and it should not be downgraded by such talk from the Opposition Benches.

[Emily Thornberry]

That is to be acknowledged, but we must also look at what is happening within the various missions and at the posts that are being stripped out. Those whose job it was to make contact with human rights activists and with civil society within those countries—[Interruption.] If the Under-Secretary of State for Foreign and Commonwealth Affairs, the hon. Member for Bournemouth East, wishes to intervene on me, I will have no problem with that. However, if he is not going to intervene, could he just be quiet and let me finish my speech? I would appreciate that.

I want to talk about what our foreign policy is, in essence. Ministers are fond of speaking of the opportunities that leaving the EU could provide. On foreign policy, a fundamental rethink of the Government’s approach could be one of those opportunities, but in fact it is more than that: doing so is an absolute imperative. As the Government start to think—however belatedly—about the kind of relationship they might want with Europe, they should also consider what kind of relationship they want us to have with the rest of the world. In doing so, we need more than just warm words from the Government—we need a plan. Our Foreign Office has been at its very best when it has been allowed in its foreign policy to give proper weight to British values as well as to British interests. I hope that the Secretary of State will look to that legacy and embrace and build on it, rather than undermining it any further. In the more immediate term, we need the Government to start thinking sensibly about Europe as a matter of urgency. We know little more about Ministers’ intentions than that they are prepared to break the British economic model if they feel that that is needed if we do not get a deal.

I heard the Secretary of State say at the weekend that we would be “perfectly okay” if we left the EU without a deal. So why is the Chancellor of the Exchequer briefing that he is going to hoard £60 billion because of Brexit? Perhaps it is to fund the extra £350 million a week that the Secretary of State promised for the national health service. If so, I hope that the Secretary of State has asked the Chancellor about it, because £60 billion would provide three years, three months and one week’s-worth of extra money for the NHS. At the moment, he seems to be doing no more than crossing his fingers and hoping for the best. This is a serious situation. We need clear thinking about our future in Europe and in the wider world, and simply talking about Toblerone display cabinets in Saudi Arabia is not sufficient. We need clear thinking and a clear plan, and we need them without any further delay.

[Several hon. Members rose—]