Oral Answers to Questions

Geoffrey Clifton-Brown Excerpts

Tuesday 30th July 2024 Commons Chamber

[Anneliese Dodds]

As we have mentioned, this Government are committed to restoring overseas development assistance to 0.7% of gross national income as soon as fiscal circumstances allow and, overall, to restoring our development reputation and reconnecting our country to countries in the global south. The delivery of aid by this Government is made more challenging by what took place previously, with the uncontrolled expansion of so-called in-donor refugee costs. In 2023, the UK spent £4.3 billion of overseas development assistance on in-donor refugee costs—that is 27.9% of UK ODA. We are determined to ensure that we do not have the kinds of unplanned reductions that we saw before.

[Sir Geoffrey Clifton-Brown (North Cotswolds) (Con)]

What steps will the British Government be taking, following the highly disputed result in Venezuela of the election of President Maduro, to work with our American colleagues over the disputed land in Guyana to prevent any incursion there?

[Mr Lammy]

I thank the hon. Gentleman for raising that issue. The disputed election in the last few days is of huge concern, and I issued a statement on it yesterday. There are ongoing discussions with our American friends, and indeed with the state of Guyana, given the threats from Maduro in the past.

Ukraine

Geoffrey Clifton-Brown Excerpts

Monday 20th May 2024 Commons Chamber

[Mr Mitchell]

On the hon. Gentleman’s second point, I very much hope that progress will be made at the G7 meeting later this week. Things are moving in the right direction, and we must hope for success by the end of the week.

The hon. Gentleman is right in what he says about the so-called Chelsea fund, and he reflects the immense frustration that many of us have felt over the last year in trying to get the fund up and running. The Foreign Secretary is absolutely determined that we will do so. It will be the second largest charity in Britain after the Wellcome Trust. Every sinew is being bent to get it to operate. It is mired in legal and technical difficulties, but the hon. Gentleman has my personal assurance that we are doing everything to try to ensure the money is used to good effect.

[Sir Geoffrey Clifton-Brown (The Cotswolds) (Con)]

The news that my right hon. Friend has given the House this afternoon on the amount of military equipment and money going into Ukraine is greatly encouraging. Britain has courageously led the world on co-ordinating the effort against Russia’s operation in Ukraine, supported, of course, by the Americans and, to be fair, the Germans, but we three nations cannot do it all. What is my right hon. Friend doing to encourage other rich nations and allies around the world to contribute their share?

[Mr Mitchell]

My hon. Friend is absolutely right to underline the importance of that. I think the position is a little better than he suggests, but he may rest assured that we are pressing everyone to give the support that Britain is giving, in whatever way they can.

We are continuing to ramp up the economic pressure on Russia and, with the US, we have taken decisive steps against the global trade in Russian metals. As I said to my right hon. Friend the Member for New Forest East, we are bearing down on the circumvention of sanctions and, as the House knows, this was a major focus during the Foreign Secretary’s recent visit to central Asia. We are adopting new measures to target the shadow fleet that transports Russian oil.

We have also consistently said that Russia must pay the price for its illegal invasion. Ahead of the G7 summit in June, we have been leading international efforts to build consensus on a lawful route to use Russian assets to generate the maximum possible support for Ukraine. We are, again, working with our partners so that they join us in giving Ukraine the long-term support it needs to win this war by ramping up defence production, supporting Ukraine’s own industry and imposing more sanctions to undermine Russia’s military industrial complex and reduce its export revenues.

Finally, we need to invest in Ukraine’s future security and prosperity by backing it not only in the war but after it. Last year’s London recovery conference raised $60 billion for Ukraine. In January, Britain was the first to sign an agreement offering bilateral security commitments to Ukraine following the Vilnius declaration. And now we are the first to commit to multi-year military support for as long as it is needed.

We are seeing encouraging signs of many partners making similar investments. The Americans and the European Union have agreed generous funding packages. Germany will host the next Ukraine recovery conference in June, and our main NATO allies and G7 partners are now following us in signing long-term security agreements with Ukraine. In July, at the NATO summit in Washington and the European Political Community summit at Blenheim Palace, we will urge our partners to underline once again our unity in standing with Ukraine, which I hope will satisfy my hon. Friend the Member for The Cotswolds (Sir Geoffrey Clifton-Brown), who made a very good point.

--- Later in debate ---

[Sir Geoffrey Clifton-Brown (The Cotswolds) (Con)]

I think this House is at its best when we get serious issues of this kind, and those on all sides of the House are in agreement—broad agreement—about what needs to be done. We have heard some excellent and informed speeches from both sides. I think the announcements made at the beginning of this debate by the Deputy Foreign Secretary are very welcome, particularly the £3 billion this country is going to give Ukraine this year and every year thereafter, while some of the significant sums—for example, on artillery and drones—are very welcome.

We have reached a critical point in the Ukraine-Russia war when we, along with our allies, need to decide how far and for how long we can take our support. In recent weeks, Russian forces have made slow but important advances in the area of Kharkiv, Ukraine’s second largest city, compounding their advances by stretching the Ukraine army along a wide front. Opening up new fronts as well as widening those in the south-east Donetsk and Luhansk regions will stretch Ukrainian forces in a battle of resources, as Ukraine awaits the delayed US aid and equipment.

The UK and US have provided strong support for Ukraine, but there have been limitations and critical delays, as others have said, in providing the weapons and equipment needed. We are at a point where this war is dragging on, with limited and slow advances on both sides. The west has provided enough support for the Ukrainians to defend themselves, but not enough to make decisive advances, let alone enough to end the war. We must decide with our allies whether we will step up this support to persuade the Russians to withdraw from Ukraine. What we should not do is allow a war in Europe to drag on for many years and become a frozen conflict. That would cause an increased death toll, damage Ukrainian infrastructure and impact on our own and other western economies. Not only would it continue to prolong the suffering of the brave Ukrainian people, but it would make the job of rebuilding the country in the longer term much more difficult.

There is a strong possibility that, if we are not sufficiently determined to oppose Russia now, its aggression will not cease with Ukraine. We have only to look at what is happening in Georgia at the moment. Whatever the rights and wrongs of the demonstrations against the foreign agents law, it is clear that the majority of people in Georgia want a closer alignment with Europe and NATO than with their historical ties to Russia. That will be a cause for thought in Moscow. I use those words carefully.

In Europe, there is the possibility of risk to a Baltic state or Moldova. What would it mean if a NATO state were targeted next? Estonia’s Prime Minister urged NATO allies at the security conference in Tallinn to follow their response by stepping up support for Ukraine, while Moldova has recently defied Russia with a EU security pact deepening defence co-operation. Of course, one of the outcomes, whatever happens in the war in Ukraine, is that both Sweden and Finland have become members of NATO. Those deeply independent, non-aligned, neutral countries joining NATO must be a real slap in the face for the Russians. European countries have a huge vested interest in continuing to provide considerably more equipment and training. As I have mentioned, some countries such as Germany and Poland are to be commended for what they have done.

As I have said, the UK is sending an extra £500 million on top of the £2.5 billion in military aid that it had already pledged to give Ukraine in 2024. In February, the EU agreed to a further £42 billion package, but by March it had failed to meet its targets on sending shells to Ukraine. After the US and Germany, the UK is the third largest supplier of weapons and equipment to Ukraine.

As I said in my intervention on the Deputy Foreign Secretary, who made an excellent speech, I think we must do much more on the diplomatic front to encourage a coalition of the willing. As my hon. Friend the Member for Harwich and North Essex (Sir Bernard Jenkin) said, the consequences of the Russians winning in Ukraine are huge in the longer term. I think it would mean that a number of non-aligned nations will decide that they are perhaps better off with the coalition of Russia and China, rather than with the west, which would be an utter disaster. It is important that we try to build that coalition of the winning, and I am not just thinking of Europe and America. There are countries in south-east Asia and in the middle east that we should be trying to persuade to join this coalition.

The US has been a huge supplier of arms and financial support, and its contributions to the war have far outweighed what has been sent by all other countries put together. In a recent visit to Kyiv, the US Secretary of State, Antony Blinken, pledged ongoing US support for Ukraine after Congress approved the $61 billion aid package. Arriving at the frontline, as my hon. Friend the Member for Filton and Bradley Stoke (Jack Lopresti) has said, are the ATACMS—army tactical missile systems—which are long-range precision-guided missiles. Of the $61 billion-worth of aid being provided, about $8 billion will be used to resupply Ukraine with missiles and ammunition. That is a crucial point, because these missiles are absolutely critical.

The US has also been stepping up its own arms manufacturing, as we heard on the Public Accounts Committee visit to the Pentagon two months ago. That is critical. Europe needs to step up its arms manufacturing, which it has pledged to do, but it seems to be doing that far too slowly. This is not, as my hon. Friend the Member for Harwich and North Essex said, just about manufacturing. Huge volumes of hardened shelters are required to store the shells. There is a lot attached to building up this capacity, and my hon. Friend was right to indicate those figures. Furthermore, after that first year, the step-up in the second year will be even greater, which is good news.

As the Prime Minister said, we are facing some of the most dangerous and yet transformational years to come. Others have mentioned that the Ukrainians must be free to make decisions on how they use the arms that we supply, and they should not be hampered by conditions imposed by us. It is utter nonsense to watch Russian troops massing on the border near Kharkiv, and then to expect the Ukrainians not to use the vital weapons we have supplied to prevent that from happening.

An important area that has not yet been discussed is that, as any military tactician knows, to win a ground war air superiority is needed. Therefore, if the west really wants to help Ukraine, it must be far more generous in providing fighter aircraft, complete with trained Ukrainian pilots and anti-aircraft missiles. Ukraine has consistently asked the US for fighter jets to counter Russia’s air superiority. In May 2023, the US agreed to let other nations supply Ukraine with US-made F-16s. However, the US has hundreds of those aircraft, which are being rapidly superseded, and it could well afford to donate some of them. Instead, it says that the F-16s must be supplied by Denmark, the Netherlands and other nations, and we must train those pilots in how to use them. As others have said, our missiles have been very effective at deterring Russian ships in the Black sea.

I am not really criticising, but the hon. Member for Angus (Dave Doogan) slightly dismissed the fact that grain was getting out of Ukraine. It is not only good in itself, but important—others have touched on this—that small businesses are able to flourish in Ukraine. It is important that they are able to generate profits, and even more important that they are able to employ people who are not able to fight in the war, such as women who are not at the front. It is important that the Ukrainian economy is beginning to flourish again.

[Dave Doogan]

I do not disagree with the hon. Gentleman at all. I was very specific in what I said, and I talked about a “tactical advantage”, which is minimal.

--- Later in debate ---

[Sir Geoffrey Clifton-Brown]

I entirely accept what the hon. Gentleman has said.

As Russian advances were being made in Ukraine, Vladimir Putin was making a state visit to China, in a show of strength. China is the largest investor in Ukraine after Russia, and it is propping up the ailing Russian economy by buying a significant quantity of Russian oil and gas at cheap prices. China could have a significant influence on Russia to settle the war if it chose to do so. A group of colleagues visited China the other day and made those points, but I do not think we had any impact on the Chinese. Surprise, surprise some might say, but we have to go and we have to engage, otherwise we certainly will not have an impact.

Putin has been making recent changes, dismissing his Defence Minister who had been in charge since 2022—the beginning of the war, when Putin expected Russia to take Kyiv in days—and replacing him with a very different person in Andrey Belousov. He is now overseeing the $117 billion defence spending that Russia has embarked on, and building up a Russian war machine that is reminiscent of what they did in world war two, by turning the entire economy to a war footing, which suggests that Putin is preparing for a long war with Europe. In addition, Russia’s allies, China, Iran and North Korea, have huge manufacturing capabilities that could replace a significant proportion of the Russian arsenal if it wished. If we and our allies are unwilling to provide more decisive support, there will inevitably be a political settlement between the two countries, which will leave Russia in a far more powerful position.

As my hon. Friend the Member for Harwich and North Essex indicated, we do not know what the US position will be after the elections in November. That is why I say to my hon. Friend the Minister that it is imperative that we engage with both sides in that election—Republicans and Democrats—so that whatever happens we strongly make the point that it is vital that the Americans continue on their course. Otherwise there is a danger that we will not be able to win this war.

Hotbeds of tension that could unravel in the years to come in the middle east and in east Asia around Taiwan and China are being carefully managed at the moment. Eyes are on the west and how we deal with Russia. The more Russia succeeds in Ukraine, the more co-operation between Russia and China seems to be strengthening, and the old enmity between them is reducing. That is incredibly dangerous. Urgent concerted and positive help must be given to the Ukrainian people in their hour of need for as long as it is needed, to deter Russia from taking any further offensive action in the rest of Europe.

--- Later in debate ---

[Sir Geoffrey Clifton-Brown]

The Public Accounts Committee looked in great detail at how we built capacity during the covid pandemic for producing vaccines. Will the Minister look at the lessons learned in that campaign? In particular, during that campaign we invested directly in capacity, not through the firms that were producing. Will he look at that as a method of how we could rapidly build up our military capabilities?

[Leo Docherty]

That is one of the things we are looking at.

I was grateful to the hon. Member for St Helens South and Whiston (Ms Rimmer), who spoke about this being Europe’s war, not just America’s, which was an interesting contextual point. She spoke about the brutality in Bucha and the strategic importance of a Ukrainian victory, which was welcome. My right hon. Friend the Member for Gainsborough (Sir Edward Leigh) made a provocative but sincere speech and asked the question, “Do we have the resolve to win?” The House answered that question with a resounding yes—we do have that resolve.

The hon. Member for Leeds North West (Alex Sobel) made a welcome historical point, putting in context the journey to statehood for Ukraine, mentioning the Viking establishment of Kyivan Rus’, the Scythians and Crimea. He also mentioned the ancient grain-based relationship with Europe, which was an interesting insight, and which disputes much of the propaganda coming out of the Kremlin. He pointed out the human cost of the war in Ukraine.

The hon. Member for Tiverton and Honiton (Richard Foord) spoke about the chauvinism of the Russian state, which was a good way to put it. He outlined his party’s support for our policy, for which I was grateful. He drew an interesting and relevant parallel to the Russian experience of invading Afghanistan.

The right hon. Member for North Durham (Mr Jones) paid tribute to the tenacity of the Ukrainian people. He pointed out that the first invasion was in 2014. For understanding the geopolitical journey of Ukraine, 1992 in Lisbon and 1994 in Budapest are important dates that we must all recognise when we consider our posture. The views of his fellow members of the NATO parliamentary delegation from eastern Europe and the Baltic states were welcome because they are highly relevant. I agree with him that increased defence spending is not an indication of warmongering; no—it is the surest safeguard of peace.

My hon. Friend the Member for Strangford (Jim Shannon) talked about the importance of the struggle of the whole nation, which was a good way of putting it. He spoke about the brutality of Russian forces, the threat to the Baltic states and the horrendous impact on the education of young people in Ukraine, which will surely last a generation.

I was grateful to the shadow Defence Secretary, the right hon. Member for Wentworth and Dearne (John Healey), who reflected on his visit to Ukraine last week, and the horrific experience particularly of young people there; he gave two examples of young people being kidnapped, sent to camps and told that Ukraine does not exist. Well, the whole House knows that Ukraine does exist, and it has proved that to the tyrannical invader in magnificent fashion over the past two years.

I was grateful, as ever, to the right hon. Gentleman for reiterating his support for the Government’s policy, and for the unity and resolve reflected across the whole House—across the political divide. He mentioned the 800 miles of frontline, which indicates the scale of the challenge for the redoubtable Ukrainian military. In answering his three questions, I can give him the assurance that our energetic and dynamic support in supplying lethal aid and military training will continue. Our effort is reflected in the increase of resource therein, from £2.5 billion to £3 billion this year. Our energy in that quarter will be matched by our diplomacy across the landscape of important diplomatic events this year, which I have already mentioned, and we will sincerely carry out a ramping up of industrial production. I give him the commitment that we will keep him and his Opposition colleagues updated as that is expedited.

Putin’s war has demonstrated one thing above all others: he will never be able to subdue the will of Ukrainians to be Ukrainian, which is why he should end his unwinnable war, and the hideous suffering he is inflicting on Ukrainians and Russians, by withdrawing his forces. Putin should also know that this is not the outcome Ukraine and its allies are planning for. In January, the Prime Minister and President Zelensky signed an historic 100-year partnership, and more and more of our allies are following suit.

Since Putin’s invasion of Crimea, we have helped to train over 65,000 Ukrainian military personnel. Since the start of the full-scale invasion, we have sent almost 400 different military capabilities; in terms of resource value, that amounts to £3 billion this year. We are making long-term investments in Ukraine’s security, in the air, on land and at sea, including by hosting a forum with Ukrainian defence companies this week.

Taken together, our current support will help to keep Ukraine in the fight; our continued support and diplomacy will ensure it prevails; and our long-term support and co-operation will help the Ukrainian people to rebuild their country, strengthen its defences and deter future aggression. Putin thinks he can outlast us, but he should be in no doubt. The United Kingdom will stand with the Ukrainian people for as long as it takes.

Question put and agreed to.

Resolved,

That this House has considered the situation in Ukraine.

War in Gaza

Geoffrey Clifton-Brown Excerpts

Tuesday 7th May 2024 Commons Chamber

[Mr Mitchell]

I have given the hon. Lady the update from the Dispatch Box, in so far as there is an update to give. She asks me about the words that we are using in respect of Rafah. I have made it clear that we have not seen a credible plan for military action in Rafah so far, so we are not able to judge whether it would be in accordance with international humanitarian law, and that is the point that I have been making to the House.

[Sir Geoffrey Clifton-Brown (The Cotswolds) (Con)]

Israel is our friend and ally, but that does not stop us questioning its actions. My right hon. Friend the Deputy Foreign Secretary says that he wants to see much more aid getting into Gaza. The actions in Gaza over the weekend have only made those miles-long queues of lorries even greater. Air and sea drops are difficult. Will he today, on behalf of the Government, appeal to our allies to allow those in those miles-long queues in Rafah to rapidly go into Gaza and relieve the suffering of the people there?

[Mr Mitchell]

We continually appeal for more aid getting in by road. We have made arrangements for maritime entry, and entry from the air, but getting aid in through entry points on the road system is, by miles, the best way. I said at the outset of my remarks that we were very concerned indeed about the fact that no aid got in through Rafah or Kerem Shalom yesterday. We are doing everything we can, as we have been since the start of this crisis, to ensure that more aid is getting in, and we will continue to do so.

Israel and the Occupied Palestinian Territories

Geoffrey Clifton-Brown Excerpts

Tuesday 14th November 2023 Commons Chamber

[Mr Mitchell]

We have always made it clear to Israel that we are its closest possible friend, but friends give candid advice and do not always say what people want to hear. The British Government will continue—with, I believe, the strong support of this House—to make the right points to the Israeli Government, and we are able to do so because of our extremely close alliance and friendship with them.

[Sir Geoffrey Clifton-Brown (The Cotswolds) (Con)]

The human misery and death on both sides, Israeli and Palestinian, are the worst I have witnessed since I became a Member of this House, and they will be solved only by a long-term political solution. Will my right hon. Friend, with whom I totally agree, explain what the British Government are doing in strategic planning to bring about a two-state solution?

[Mr Mitchell]

There is an immense amount of work going on about how we get to the point where we can achieve that. As I set out in my statement, there is no alternative to the two-state solution, and all interested parties should get behind that.

Repurposing Russian Assets to Rebuild Ukraine

Geoffrey Clifton-Brown Excerpts

Tuesday 27th June 2023 Commons Chamber

[Mr Lammy]

I agree with my right hon. Friend, who has raised these issues time and again. The concern is, of course, that there is not the appropriate ministerial oversight, that this place is being kept in the dark about fundamental, key issues, and that in the end the money of taxpayers in all our constituencies will fund these waivers. That is why the House should have both transparency and the opportunity to challenge and question those who make these decisions on our behalf. I hope that that is what Ministers are doing, but it does appear that this is happening without ministerial oversight.

[Sir Geoffrey Clifton-Brown (The Cotswolds) (Con)]

I agree entirely with the thrust of the right hon. Gentleman’s speech. Does he agree that the possible lacuna in the tracing of Russian assets is in Companies House and shell companies? Does he agree that we need to amend the regulations surrounding Companies House to provide proper verification of the people in charge of those companies, and allow Companies House to liaise more closely with the fraud authorities and report suspected fraud?

[Mr Lammy]

The hon. Gentleman is absolutely right. That has been a standing issue that the official Opposition have taken up. We do think further reform is necessary at Companies House, and we were slightly concerned that that was not supported by the Government in the Economic Crime and Corporate Transparency Bill.

--- Later in debate ---

[Mr Lammy]

My hon. Friend is right, and it is why I wanted to mention in my speech that work is happening in Ukraine now, which is extraordinary. We should be behind that work, in defiance of Putin’s imperialism.

We will continue to work with the Government to ensure that Ukraine gets the support it needs to win this war. From the start of this invasion, we have been united on providing Ukraine with the military, economic, diplomatic and humanitarian support it needs. We commend the Government for the commitments they made to support Ukraine at the Ukraine recovery conference last week. We welcome the International Monetary Fund’s announcement of $15 billion to support Ukraine over four years, and we welcome the announcement of £250 million of extra funding from British International Investment. However, just as we pressed the Government to move further and faster on sanctions, in a constructive spirit, at the start of the full-scale invasion, today we are urging the Government to come forward with a legislative plan to repurpose Russian state assets for Ukraine’s recovery.

[Sir Geoffrey Clifton-Brown]

The right hon. Gentleman is a lawyer. Is he aware that one of the biggest arbitration cases ever is before the United Kingdom commercial court? It concerns the seizure by Russia, a month before it went to war in Ukraine, of several hundred civil commercial aircraft. That case is going to cover many billions of pounds, both here and in the US. When we consider what measures we take against Russia, should we not consider that act of expropriation by the Russian authorities?

[Mr Lammy]

The hon. Gentleman puts before the House an important case, which we should look at very closely, as it will be of concern to all of us in relation to how we move forward in these areas. It has been some time since I practised law, although I was pleased to be made an honorary doctor of laws by the University of Glasgow last week.

The UK has a part to play in supporting Ukraine not only today, but for tomorrow and in the decades to come. We believe that we can go further. The frozen Russian state assets held in the UK could have a transformative impact on the future of Ukraine. Let us imagine the good that £26 billion could do if we reappropriated it with the sole purpose of securing a positive future for the people of Ukraine. Russia forfeited its rights to these assets when Putin embarked on his barbaric and illegal invasion, and the least we can do is join our international allies in repurposing these assets for the benefit of Ukrainians. The Government have had more than a year to come up with this legislation, but there has been no plan, no action and no progress. We call on them to treat this matter with the urgency we believe it deserves and to come up with the required legislation within the next 90 days. That gets us to a place where in the autumn we could come together as a House to make this happen—if need be, this could be in the next Session of Parliament. Labour will support the Government in any way we can to make sure that this succeeds, and of course we will hold them to account if they should fail.

--- Later in debate ---

[Leo Docherty]

Thank you, Mr Deputy Speaker. The Minister of State, Foreign, Commonwealth and Development Office, my right hon. Friend the Member for Berwick-upon-Tweed (Anne-Marie Trevelyan) has had to go away to deal with an urgent welfare issue. So, with the leave of the House, let me begin by thanking all right hon. and hon. Members from across the House for the constructive tone of this debate and for their continued support for Ukraine in the face of Putin’s deplorable and illegal invasion. We have heard many thoughtful and considered speeches and interventions. First and foremost, I would like to reiterate our absolute determination to ensure that, fundamentally, Russia pays for the damage it has caused in Ukraine.

I was grateful for the contribution of the hon. Member for Cardiff South and Penarth (Stephen Doughty), and I will try to cover some of the points he raised. It was welcome that he reiterated the fact that Putin is to blame. We work on the basis that the perpetrator must pay, which is exactly what the Prime Minister outlined last week during the very successful Ukrainian recovery conference.

[Sir Geoffrey Clifton-Brown]

The Russian economy is worth about $1.8 trillion, ranking it 11th in the world. Does my hon. Friend agree that the UK has a strong legal base and that we need to work with our international partners so that we can send out a strong message to the Ukrainians today that there is a hope that one day their country will be rebuilt?

[Leo Docherty]

I am grateful for that intervention, as I entirely agree with it. If we look at the work that has been carried out by G7 allies, European nations and other states around the world in constraining the export of Russian hydrocarbons and finding alternative supplies, we see that the European energy picture has changed radically overnight. That was a consequence of allied will and effort. If we bring that same determination to the issues we have discussed today, we can have a very significant impact.

The perpetrator must pay and we are very clear about that. I will come on to what consideration we have given to the various options that have been laid out today, but I should say—

Ukraine Recovery Conference

Geoffrey Clifton-Brown Excerpts

Thursday 22nd June 2023 Commons Chamber

[Leo Docherty]

The Department will keep colleagues informed through oral and written statements. The hon. Gentleman is correct that public capital is a small component; we are trying to create an environment where global private capital can flow into Ukraine to drive development and long-term sustainable growth. The de-risking of that is a key condition in which the London insurance market will be central.

[Sir Geoffrey Clifton-Brown (The Cotswolds) (Con)]

Our Government deserve great credit for the military and non-military support—£470 million has been given. The World Bank estimated in March that the total rebuilding of Ukraine was likely to cost in excess of £411 billion—that was before the destruction of the Kakhovka dam. Did my hon. Friend detect at yesterday’s conference a willingness among the world’s wealthier nations that for one reason or another have not felt able to participate in the military effort to participate generously in the efforts to rebuild Ukraine?

[Leo Docherty]

That is a relevant question. I think that there is that appetite. The sheer scale of the economic and financial heft of G7 and non-G7 nations there left us full of confidence that our resolute military effort across allied nations will be matched by global capital.

Oral Answers to Questions

Geoffrey Clifton-Brown Excerpts

Tuesday 21st June 2022 Commons Chamber

[Elizabeth Truss]

It is very true that we face a much more insecure Europe and a much more insecure world, and it is right that we are increasing defence spending. We are increasing our capabilities, particularly in areas such as cyber, but we are also making sure that we have fully trained and efficient armed services, not just to be ready but to ensure that we are training up Ukrainians, for example, and helping our allies, particularly on the eastern flank, who face that direct threat from Russia.

[Sir Geoffrey Clifton-Brown (The Cotswolds) (Con)]

The harvest in Ukraine is going to have to start in the next few weeks. The problem is that there are 25 million tonnes of old crop filling up all the stores, so there will be nowhere to put the new crop. It will have to be piled on the fields, and the Russians will seize it and use it as a weapon of war to buy influence around the world. What more can my right hon. Friend do to ensure that there is international passage for that grain out of Odesa and other ports?

[Elizabeth Truss]

We are doing all we can to secure the export of that very important grain from Ukraine. My hon. Friend is right to say that we have only a number of weeks to be able to achieve that. We are backing the UN plan, but we are also doing what we can with our allies to provide safe passage and to make sure that Odesa is fully defended. Tomorrow, I will be travelling to Turkey to talk to people there about how we could do more to get the grain out of Odesa.

Georgia and the War in Ukraine

Geoffrey Clifton-Brown Excerpts

Tuesday 24th May 2022 Westminster Hall

[Sir Geoffrey Clifton-Brown (The Cotswolds) (Con)]

It is a great pleasure to serve under your chairmanship, Sir Mark. I pay great tribute to my hon. Friend the Member for Huntingdon (Mr Djanogly), not only for the informed way he spoke, but for leading a successful all-party delegation to Georgia, as declared in my entry in the Register of Members’ Financial Interests.

We found that the Georgian people are not only extremely hospitable, but very pro-European. In 2020, the chairman of the ruling Georgian Dream party announced plans for Georgia effectively to apply for EU membership in 2024, but the geopolitical situation changed. Russia invaded Ukraine on 24 February this year, and Georgia responded by expediting a full application and submitting it on 3 March for EU consideration.

This month, further documentation was submitted, with the Georgian Government’s answers to a 2,600-point EU questionnaire on the country’s political, economic and institutional readiness to begin the process of joining the EU bloc. A response from the EU is expected in the next couple of months. During our visit to Georgia, as others have said, we visited a training and evaluation centre organised by NATO, where the level of military co-operation with Georgia is increasing. The Georgians seemed incredibly grateful to us as British Members of Parliament for visiting their country and showing our support.

Georgia is at a crossroads, linking Europe and Asia. It has, over the centuries, been partially or completely conquered by many different powers, including the Persian, Ottoman, Mongol and Russian empires. They have all left their mark on the country, culturally enriching it. It is an incredibly beautiful country, with the Caucasus bordering the north, the Black sea to the west, and the wine regions of Kakheti to the east.

One reason we were invited was to assess the current situation with Russia, which, as others have said, occupies 20% of Georgia’s internationally recognised territory. Unfortunately, as the Georgians reminded us many times during our visit, that occupation, which began in 2008, happened with hardly any protest from the rest of the world. Many would argue that that event, combined with Russia’s annexation of Crimea in 2014, led to Putin’s boldness in Ukraine today. We visited South Ossetia, which is one of the two occupied areas, the other being Abkhazia. Standing on the line of control from Russian occupation, peering through binoculars into the mist and seeing no life at all—most, except some of the elderly, have been driven out—was a very eerie feeling.

The only parallel I can draw is with standing on the demilitarised zone between North and South Korea, again peering into the mist through binoculars into the Kaesong joint industrial centre. The only difference in South Ossetia is that the Russians have purpose-built military forts about every 7 kilometres along the border. There is a direct link road through the Caucasus into the former Republic of North Ossetia, which has also been annexed by Russia.

The democracy of Georgia, after years of occupation by the Soviet Union, is nowhere near as well embedded as ours. Although there is a free press, the majority of the press and media usually toe the Government line. In the Parliament, which we visited, the Government exercise control and the opposition do not have anything like the opportunities for criticism in holding the Government to account that we do. There were allegations, though we were provided with no proof, that the judiciary tends to find in the Government’s favour in the most serious cases.

Having said all that, and to put it into perspective, it is considerable how far the country has come since it was occupied by the Soviet Union. There are free elections, and the former President Mikheil Saakashvili admitted defeat in the parliamentary elections in 2012, allowing the first peaceful transition of power since Georgian independence. So, it is possible for people to exercise democratic power. For instance, demonstrations outside Parliament are a common feature, and they are allowed to go ahead unhindered by the Government.

The war in Ukraine is worrying on a number of fronts, because of the human tragedies that have occurred, with the prospect of future trials for war crimes and even genocide. It is essential that we keep up all the pressure against President Putin through sanctions, disruption of the Russian banking system, trade, continual resupply of lethal equipment to the Ukrainian military and, finally, reinforcing the generous British offer to take in Ukrainians affected by war.

No one yet knows how the war will end. It may even become a prolonged low-intensity war. One thing is certain: the military and political landscape of Europe has changed. That is what the Georgians hope—that somehow, in future negotiations, Russians can be pressured to leave the occupied territories, and that the people and families who lived there for so many generations can return to their homes.

As a farmer, I hope that the west will take control of the supply routes through the Black sea, allowing grain to come out of Ukraine and into some of the poorest countries in the world that are most in need of it. Otherwise, various things will happen. Obviously, the people in those countries will suffer hugely. The Ukrainians will also suffer further, because their grain stores are currently full and, unless they can get the grain out of those stores, they will not be able to put into them whatever new harvest they have to prepare for next year.

I left Georgia with a feeling of hope. The Georgians are a wonderful, hard-working and hospitable people who have endured so much over the years—not least because Stalin was born in the country and it was the location of some of the most brutal purges. The Georgians are determined to build it into a prosperous, modern and democratic country. Historically located at the crossroads of Europe and Asia, right at the heart of the old silk route between east and west, they have huge opportunities to trade.

In closing, I pay tribute to the Georgian ambassador to London, who went to huge trouble to organise our trip. We learned a great deal on that trip, and I hope that relationships between Georgia and this country have been, and will continue to be, improved by similar exchanges of views.

--- Later in debate ---

[Stephen Doughty]

The hon. Gentleman is absolutely right to point to that history. It is of course the history of many others in the near orbit of Russia, including in the Baltics. Now, yet again, we see a false, so-called referendum being used next month to attempt to formally bring one of those illegally occupied regions into union with Putin’s Russia. The ceasefire agreed back in 2008 was undoubtedly tipped in favour of Putin and, in the weeks and months that followed, I am sorry to say, the west went back to a business-as-usual approach in its dealings with Moscow. We failed to implement tough enough sanctions or to punish such egregious behaviour. Indeed, the US led the way in “resetting” relations with the Kremlin, and continued to treat Russia as a wayward partner rather than a belligerent adversary.

We cannot continue to make these mistakes if we are to end this diabolical trend of interference and invasion. And, of course, let us not forget the human cost. We saw the persecution of ethnic Georgians in Russia, South Ossetia and Abkhazia, the indiscriminate killing of civilians and the deliberate targeting of urban centres, the waging of a concerted information war to skew and misrepresent the actions of the invaders, and the displacement of 200,000 people. Does any of that sound eerily familiar? It is exactly what we are seeing yet again, so the warning signs were there and it saddens me greatly that we ignored them. We cannot afford to do that again and again.

Rightly, since 2008, Tbilisi, under different Governments, has pushed strongly for closer links with the EU and NATO, to attain the diplomatic and military assurances that it would be protected should it face such threats again. Obviously, membership of either organisation is unlikely in the immediate future, despite the clear attitudes of the population, which have rightly been referenced, and the passion there for close alliance with us. We need to do all we can to facilitate that dialogue and direction.

Georgia has been forced into a very difficult position when it comes to the war in Ukraine, but, despite the expected tension between Kyiv and Tbilisi, I was encouraged to see Georgia’s support for the 2 March UN General Assembly resolution condemning Russia’s illegal attack; support for Russia’s expulsion from the Council of Europe; and backing for the International Criminal Court probe into war crimes against the people of Ukraine. Those are encouraging signals, and we should absolutely recognise their significance. I certainly hope that Georgia can go further, but that requires us also to get involved and to proactively and consistently support all those who face these very difficult choices, particularly in the near neighbourhood of Putin’s Russia, and who need our support economically, diplomatically and in security terms.

I read the article by the hon. Member for Huntingdon that gave us a preview of his speech. It was a very interesting and important article. Fundamentally, if Georgia is to have the confidence to definitively support Ukraine’s resistance, and if the international community is to speak with one voice, clear assurances must come from countries such as the United Kingdom and others of support in multiple domains. If we want to ensure a network of liberty, democracy and peace, we have to invest in it urgently. With that, I have three questions, in conclusion, for the Minister. Can the Minister say what additional measures the UK is taking now to support Georgia diplomatically, economically and, crucially, in terms of security guarantees?

The focus has rightly been on Moldova in recent days, given the imminent threat that country faces. However, we know that the threat can be anywhere in the near neighbourhood of Russia at any time, as seen in Putin’s actions. What is our medium and long-term strategy for the likes of Georgia or, indeed, as mentioned, the western Balkans? What are we doing to reopen the Black sea fully? It cannot be right that Russia alone is able to dominate that crucial maritime domain.

We have heard about the impact on grain and trade, which affects Georgia and other countries bordering the Black sea. We have seen the despicable alleged theft of Ukrainian grain by the Russians in recent days, which has much wider consequences for the rest of the world, as rightly identified by the hon. Members for Huntingdon and for The Cotswolds (Sir Geoffrey Clifton-Brown). What are we doing to block the sale of that illegally seized grain, get the Black sea back open for trade, and ensure that Ukraine and others, including Georgia, can access their trade routes? Finally, what are we doing to build on and enhance the historic friendships and bilateral trade between the UK and Georgia? We have heard so much about that positive relationship. It is clear, in all the relationships that many of us have enjoyed, that the appetite is there from the UK and Georgia, and it is needed more than ever in these difficult times.

[Sir Geoffrey Clifton-Brown]

Will the hon. Gentleman give way?

[Stephen Doughty]

I will, just before I say my last words.

[Sir Geoffrey Clifton-Brown]

The hon. Gentleman has not quite been saved by the bell. A point that was put to us several times throughout our visit was that one of the things that could facilitate greater trade between the United Kingdom and Georgia would be to establish a direct air link between the two countries. In intervening on the hon. Gentleman, may I press the Minister on what she can do to help in that respect?

[Stephen Doughty]

The hon. Gentleman puts an important question. I hope the Minister can address that point, because we must have those links open—not only for trade, but for relationships based on culture and friendship that we know are there—to enable people to travel easily between the UK and Georgia. I hope the Minister has something to say about that.

Today we have covered two important countries and the implications of Russia’s actions towards both. The United Kingdom has to stand united and resolute with our allies and friends around the world, be that Ukraine or Georgia.

Cotswold District Council: Solar Farms

Geoffrey Clifton-Brown Excerpts

Wednesday 27th April 2022 Commons Chamber

[Sir Geoffrey Clifton-Brown (The Cotswolds) (Con)]

Mr Deputy Speaker, would you please thank Mr Speaker for granting me this opportunity to raise the matter of Cotswold District Council and funding for solar farms?

The council’s Liberal Democrat administration proposes to borrow a staggering £76.5 million to fund various capital projects. The plans were laid out in a report presented to the council’s capital programme investment board on 24 March 2022 and during a subsequent cabinet meeting on 4 April 2022. The full public document pack is available on CDC’s website.

The problem is that if a local authority is ever put into special financial measures, for example as seen in 2018 when Northamptonshire County Council effectively declared itself bankrupt because it could not pay its bills, it is the taxpayer, via the Government, who always ends up paying for disastrous financial decisions made by local councillors.

So what exactly are these proposals as laid out in the circulated tactical delivery plan? Well, page 66 states that the council wishes to borrow a total of £76.5 million to finance various projects, at the same time exhausting the council’s general reserve fund. The plan envisages that £49.7 million be borrowed to finance climate change and green energy investment projects. The largest of these projects is to buy five solar farm sites for a total of £46.5 million. There is more than sufficient finance in the market to fund these schemes without the council’s intervention. In addition, there are plans to borrow £25 million for investment in a variety of projects described as investments for economic development and asset usage, although further details on these schemes are currently not available.

From the delivery plan setting out the substantial amount of money that the council intends to borrow overall, just one project so far has been approved in this entire programme—a £1.8 million housing loan to contribute to Cottsway Housing, which produces income below target. This is a good thing. Borrowing to invest in social housing would really benefit the people of the Cotswolds. However, this is a comparatively small sum compared with the overall amount that the council proposes to borrow, despite its having tangible benefits for the people of the Cotswolds and the fact that it should be prioritised in the building of homes, especially social housing. I understand that councillors were originally advised that about half the borrowing was for social housing, only to later discover from the plans that only £1.8 million had been allocated.

The total amount of this borrowing is spread over five years. However, according to the plans, it appears that some £50 million is scheduled to be spent next year, as they are showing an income for the following year. If this borrowing occurs, it is equivalent to mortgaging council tax payers in the Cotswolds for a generation. The Liberal Democrat administration says that these investments are green and follow economic growth priorities for the council. So what is wrong with that? Well, there is strict legal guidance that all local authorities must act with financial probity, including not borrowing excessively in a way that could put the council’s finances at risk. Please could the Minister confirm this in her reply?

We have seen many recent examples of councils losing huge amounts of money in failed investment schemes. For example, Nottingham City Council ultimately lost £30 million of public money in 2015 after it set up and invested in Robin Hood Energy—a localised green energy company that ran into financial difficulties and could not pay its bills. By 2019, the council was forced to bail it out. In 2020, Croydon Council effectively declared itself bankrupt with a £73 million shortfall. It borrowed £545 million during a three-year period to invest in commercial and housing properties. The council invested £30 million in the Croydon Park hotel in 2018-19. A central Government taskforce was sent to oversee an audit in 2020, following these risky property investments and the council ignoring repeated warnings on its dire financial situation, and last year the council had to have a £120 million bailout from the Government.

Only today, my hon. Friend the Member for Eastleigh (Paul Holmes) raised during Prime Minister’s questions the shocking fact that by 2025 Liberal Democrat Eastleigh Borough Council will have a debt of £650 million following investment in property projects. Cotswold District Council hopes to borrow the money from the Public Works Loan Board at 3.3%, making a profit on the loan by obtaining a return of 7.5% from the investment. The problem the council has with this proposal is that in order to curb excessive substantial, and risky, borrowing from the PWLB, I and others on the Public Accounts Committee have recommended to the Government that they prohibit loans in what I call exotic investments. Such projects include solar farms, and even commercial property investments, purely to make a return on the investment. Could the Minister please confirm that bodies would not, under the PWLB’s loan criteria, be eligible for a loan for an investment in a solar farm?

Furthermore, any application to the PWLB must—this is critical to the whole debate—be accompanied by a repayment statement known as a minimum revenue provision, or MRP, setting out the repayment period and how the council will repay the loan on top of paying interest payments. As an illustration, the proposed loan by Cotswold District Council of £76.5 million, repayable over 25 years, would require annual payments of around £3 million per annum. That is purely to pay off the loan, without any interest payments. The plan does not say where the money borrowed will come from, the duration of the loan, nor how the borrowing will be repaid.

I remind the House that the council’s annual core spending was only £11.2 million last year. From that £11.2 million, which needs to pay for all services if there is to be a balanced budget without a deficit, it would need to deduct £3 million for the annual loan repayment. In the financial year 2021-22, the council forecast a budget of £12.55 million; £5.5 million is from council tax, £3.278 million is from business taxes, and the balance of around £4 million is from a variety of Government grants, which are not necessarily recurring. The council’s finances are fairly flimsy in any case. Will the Minister confirm that the size of this loan—£76.5 million—would be totally disproportionate and unaffordable, given the council’s current income, from which loan repayments and interest would have to be deducted?

It seems that the motivation for taking on all this borrowing was the desire to invest in schemes to generate income. However, as other councils doing the same thing have found to their cost, these schemes are highly risky and could make the finances worse, which would pose a considerable risk to the core finances of the whole council. No commercial bank would ever contemplate agreeing to such a loan. Could the Minister confirm that the PWLB will require a repayment schedule for the so-called MRP?

Under the Chartered Institute of Public Finance and Accountancy code, the council’s financial section 151 officer is required to give advice to councillors about the financial probity of such a large borrowing plan. The section 151 officer can ultimately give a section 114 notice, warning a council that, given the overall state of the council’s finances, the level of borrowing is not sustainable.

Another proposal mooted by the council is issuing green bonds to publicly finance these projects. Securities such as these are regulated by the Financial Conduct Authority. Cotswold District Council anticipates that an issuance programme will be aimed at small investors, although no details are available at this time. Even if the council could begin to sell the bonds in the markets, can the Minister confirm that this form of finance would also come under the financial probity regulations, under which the section 151 officer would have to warn councillors of the effect on the council’s finances of such large borrowing? Furthermore, as a financial instrument, it would have to be authorised by the regulator, the Financial Conduct Authority.

Cotswold District Council has increased council tax by £5, which is a 3.6% increase in the tax bill for residents. That is above the official cap in England of 2.99%—the maximum allowed without a referendum of local council tax payers, and a cap that some 286 councils across England and Wales are exceeding. Given the cost of living squeeze, the council should not look to put up council tax by that much while planning this huge amount of borrowing. It should focus on increasing council tax as little as possible, in order to help people with the cost of living, and should focus on delivering its core strategic services of waste collection and planning, rather than spending our money on feasibility studies.

Although the Government have set some achievable targets under the green agenda, such as bringing all greenhouse gas emissions to net zero by 2050, and securing global net zero by mid-century to limit global warming to 1.5°, there is evidence that, faced with the cost of living, people are asking the Government to help with the squeeze on bills by slowing down the increases in green levies. The same applies to the extreme borrowing that is proposed by Cotswold District Council for solar farms.

Worryingly, I do not see any statements from the council that it is trying to live within its means. Instead, it continually says that the Government are cutting various grants. In fact, in recent years, central Government—the Minister’s Department—have given it significantly more money, as is laid out in the local government settlement, which includes £16.3 billion in settlement funding for local councils in England this financial year. With other grants and an estimate of council tax included, the core spending of councils across England will rise to £54.1 billion, which is an increase of 4.6% on the previous year. There is no pressure on the council to borrow all this money to increase its income. The settlement will partly help to reverse the trend of council tax accounting for an increasingly large proportion of any council’s spending power.

There is no evidence that the council or councillors have the experience to successfully manage a long-term investment programme of this size and complexity. Delivering a financial plan on the scale that is proposed would require considerable financial expertise in the council, which could be lacking, as the competent long-term financial officer, head of finance and deputy CEO has recently resigned. The Liberal Democrat authority also proposes carrying out the programme before the local elections in May 2023. Even the biggest and best commercial banks would struggle to find suitable investments involving that amount of money, and to do the necessary due diligence on them, in just 12 months.

The proposals by Cotswold District Council to borrow a breathtaking £76.5 million, as stated in the plan circulated to its capital programme investment board and cabinet, clearly demonstrate financial incompetence amounting to a recklessness that has the potential to bankrupt the council. At the very least, it will mortgage the council for the generation to come. I urge Liberal Democrat councillors, in the interest of Cotswolds council tax payers, to think again, and I urge the Government to use all their powers to stop councillors borrowing that unsustainably large amount of money. I thank the Minister for being here to answer my debate.

[The Minister for Levelling Up Communities (Kemi Badenoch)]

I start by congratulating my hon. Friend the Member for The Cotswolds (Sir Geoffrey Clifton-Brown) on securing a debate on this important topic. Borrowing rules for local authorities may not be the sort of thing that generate many column inches in the newspapers, but they really matter to the day-to-day workings of local government. In many ways, these rules are the guard rails that help to govern decisions around the investment of public funds, which is why it is vital that hon. Members have as much clarity and transparency as possible on what councils can and cannot do, as well as having the opportunity to challenge and raise instances of what they perceive to be misallocation of funds.

My hon. Friend is a tireless campaigner on behalf of his constituents and I applaud him for bringing the issue to the House today for discussion. First, he asked whether the borrowing in question was within the lending rules of the Public Works Loan Board. Under Public Works Loan Board guidance, a project for service delivery includes education, highways and transport, social care, public health, culture, environmental and regulatory services; police, fire and rescue; and central services. I can confirm that projects related to climate change are included in that.

I make it clear that the Government understand that although borrowing is necessary to deliver local priorities, it does carry risk, so it is important that it is done sensibly to keep local authorities’ finances sustainable. My hon. Friend will no doubt be aware that in recent years, a small minority of local authorities have taken excessive and unnecessary risks with taxpayers’ money. Those risks have backfired. That has been all too visible in the high-profile cases of councils that have become too indebted or have made substantial investments in projects that have ultimately proved too risky or too large.

On my hon Friend’s points about the scale of the borrowing that Cotswold District Council intends to do in comparison with its annual income, it goes without saying that disproportionate levels of debt expose councils to financial risk. It is not just the size of the debt that can create issues; some authorities invest in novel activities outside their areas of experience or expertise, which can lead to financial loss when the investment is mismanaged. My hon. Friend will remember what happened with Robin Hood Energy, Bristol Energy and Together Energy. While councils are sometimes very well meaning in trying to tackle important issues such as achieving net zero, we cannot forget that the energy market can be volatile, and councils need to be sure that they are getting the right advice when proceeding with such investments.

That is not to say that local authorities should not undertake borrowing. I want to make it clear that the Government recognise that commercial investments can be necessary and appropriate when made sensibly. Sensible investment can play an important role in helping us to power forward on issues that are central to the Government’s agenda, be they levelling up, net zero or building the homes that the country needs.

On my hon Friend’s point that the Government should stop Cotswold District Council borrowing this money, as he will be aware, councils have responsibility for setting out capital strategies for their area, and they will be held accountable by their communities. Local leaders should understand local issues and prioritise accordingly; it is the Government’s expectation that they should be able to make decisions that reflect the needs of their communities.

In making these decisions, every local authority has a duty to comply with the prudential framework by making sure that its plans are prudent, affordable and sustainable. As my hon. Friend highlighted, taxpayers should not have to foot the bill for preventable mistakes. The Government will, of course, step in where there is clear evidence that local authorities are not complying with their legal duties or acting in the best interests of their taxpayers.

Our focus, as my hon. Friend might expect, is on making sure that we have a system that is genuinely fit for purpose.

[Sir Geoffrey Clifton-Brown]

Will my hon. Friend confirm that the guidance to the Public Works Loan Board has recently been changed so that no investment that is made purely to increase return is allowed? Will she also confirm that any application to the PWLB will have to be accompanied by a statement including a minimum loan guarantee repayment, so that it is crystal clear to everybody in the Cotswold district how these loans will be repaid?

[Kemi Badenoch]

I can confirm that my hon. Friend is correct on the first point. The council cannot invest purely for profit, but because its investment has a net zero element, it would qualify under the guidance. However, it remains to be seen exactly how the proposal will manifest itself. I cannot confirm the second point at the Dispatch Box, but I will get officials to write to him formally with a comprehensive answer. He is absolutely right to raise the point that there is guidance out there that should ensure that councils invest prudently.

In July 2021, we set out what might be called a multi-pronged approach to supporting our role as steward of local investments by improving local decision making and capability, and by developing proportionate tools for intervention, when that might be needed. We continue to work with the sector to implement our proposals and keep the system under continuous review.

I turn to my hon. Friend’s point that the council lacks the experience to successfully manage the programme. To be clear, when local authorities make decisions to borrow to invest in areas such as solar farms, it is important that they have the relevant expertise in the market, and that they have the governance in place to challenge the parties and people running the projects if they are being mismanaged or appear to be falling behind schedule. The council will need to satisfy itself, taxpayers and the electorate that it has the necessary expertise to manage complex projects without exposing itself to excessive risk.

[Sir Geoffrey Clifton-Brown]

I am grateful to the Minister for giving way again; she has been generous. Considering that there is more than adequate private finance to fund these solar farms, is it right that a local authority should invest in such a risky venture?

[Kemi Badenoch]

I thank my hon. Friend for that point. He is right that the Government should not be competing too much with the private sector, but it is not for me to determine what a council should or should not do. Councils are elected and have mandates, but they must be responsible in spending taxpayers’ money. We do not want, as a corollary of that, the Government intervening too much in councils’ decisions. We have empowered councils to do the right thing and, as I said, we expect them to satisfy themselves and taxpayers that they have the necessary expertise to manage complex projects and not expose themselves to excessive risk. We would expect any council to comply with good practice guidance from not just the PWLB but organisations such as the Chartered Institute for Public Finance and Accountancy, and to take on board lessons learned from other authorities. We want to support local authorities in investing responsibly. In March—my hon. Friend may not be aware of this—we commissioned a review of the governance and capability of local authority investment and borrowing, and that review will report later this year.

I thank my hon. Friend for bringing the issue to the House, and for raising this case. It is important that local authorities remain financially sustainable, and the Government take that seriously. If he would like to raise any further points, I will be happy to write to him with further details. Members from across the House care about local accountability and protecting taxpayers’ interests. I am sure that Members will agree that that needs to be achieved in the right way, and that local authorities’ spending needs to be sustainable and not beyond their means.

Question put and agreed to.

Relationship with Russia and China

Geoffrey Clifton-Brown Excerpts

Thursday 24th February 2022 Commons Chamber

[Sir Geoffrey Clifton-Brown (The Cotswolds) (Con)]

I am grateful to catch your eye, Mr Deputy Speaker, in this important debate. I will concentrate my remarks solely on the west and Russia today, although I have a great deal of experience in China.

By invading Ukraine, President Vladimir Putin is imposing misery on the Ukrainian people and his own people, and economic hardship on the rest of the world. Using military aggression to annex sovereign countries is a 19th-century grand power concept in the 21st-century world, where we should be able to settle our differences in a more sophisticated way. Putin wants to go down in history as the leader who restored the Soviet Union. He is tough, he appears not to respect the west or its leaders, and he will not back down easily now that he has invaded Ukraine. We all know what is going on even at this very minute, and how the whole of Ukraine is coming under pressure, and I think it will probably not be long before Kyiv falls.

It is completely false for Putin to claim that Ukraine, or at least parts of Ukraine, belong to Russia due to historical ties. Following such tenuous logic, other well-established European sovereign states that were former members of the Soviet Union would also “belong” to Russia, including the Baltics, or even those countries that have historically fallen under the Russian sphere of influence, such as Finland and Romania. I imagine many of the countries that have borders with Russia feel very nervous at this moment.

The fact is that Ukraine has gained independence and has had democratic elections for 30 years this month. Indeed, as several Members, including my hon. Friend the Member for Harwich and North Essex (Sir Bernard Jenkin), have said, Ukraine gave up its atomic weapons following an agreement in 1994, which was backed by a peace agreement by Russia, America, ourselves and other nations. As my right hon. Friend the Member for North Somerset (Dr Fox) said, it would be interesting to postulate what would have happened if Ukraine still had nuclear weapons.

While the west has responded with solidarity so far, it is very much a first step. The annexation of Crimea by Russia in 2014 was a first test by Putin of how the west would respond to his design on rebuilding Russia’s soviet legacy, and we know that responding weakly and ending sanctions as soon as we could has led to the situation we find ourselves in today. The decisive western leadership at the end of the cold war could not have been more different. The strong alliance between Thatcher and Reagan was crucial in the diplomacy that took place with Gorbachev, and their combined policy led to the end of the cold war and the fall of the Berlin Wall in 1989.

What should our response now be? The two main elements are military and economic. Regarding military support, I am pleased that for a number of years the UK has been supporting the defence and security of Ukraine, helping to train more than 22,000 members of the Ukrainian army, as well as helping to expand the Ukraine’s naval facilities and capability. There is plenty more military support that we can provide without sending British troops. I welcome the Defence Secretary’s recent announcements about the defensive weapons we have been supplying, including light anti-tank armour and defensive weapons systems, but there is plenty more we could be doing, and I look forward to the announcement that the Prime Minister will make at 5 o’clock this evening. We could, for example, supply anti-aircraft missiles and satellite communication intelligence on Russian troop movements, which would help Ukraine plan its defence. We must continue to re-supply the Ukraine military with anything it needs. We must commit to do that until Russia leaves the sovereign country of Ukraine, so that Russia knows it will not have an easy task in attacking Ukraine.

What concerns me and many of my constituents in the Cotswolds is the somewhat limited economic action we have taken so far. As I have said, it is very much a first step, and we must look to further economic sanctions. We should, for example, examine the fact that Putin is one of the world’s richest men, with his wealth estimated at £200 billion, largely distributed about the world in dollars. We should go after that money and freeze it, and we should go after the people who have helped him make that money.

Furthermore, we should go after the oligarchs who surround Putin. If we start to make them really uncomfortable in their pocket, perhaps sooner or later they will start to influence Putin. We need to do that rapidly, because people have the ability to move money around the world very quickly these days. We should have already passed an Act in this Parliament about how we can freeze the sovereign debt of the Soviet Union, how we can get into the SWIFT—Society for Worldwide Interbank Financial Telecommunication—system and stop money getting in and out of the Soviet Union and how we can stop them dealing in dollars. The right hon. Member for Orkney and Shetland (Mr Carmichael) said that Putin has an arsenal of £650 billion, but that will soon run down if we take effective economic measures.

The west must stand together, impose a full set of economic sanctions and resupply Ukraine in any military way possible without leading to full-scale troop insertions from the west. Above all, we must continue to give Ukraine hope. We must keep morale up. The Prime Minister was dead right to ring the President of Ukraine this morning at 4 o’clock to keep that morale up, and we must keep doing that.

--- Later in debate ---

[Richard Graham (Gloucester) (Con)]

As chair of the Westminster Foundation for Democracy and the all-party China group, it is a great pleasure to speak last—I think—from the Back Benches in this debate, which has been brilliantly timed by my hon. Friend the Member for Isle of Wight (Bob Seely).

It is an extraordinary thing. No one could criticise the energy of our defence and diplomatic engagement with Ukraine and Russia in the past few weeks and even months. It is also true, however, that a united western approach, whether on defence, cyber, energy or even legislation, has been lacking, and that is what, paradoxically, President Putin may be helping to bring about. Our own analysis has been in the integrated review for a year and a half: “Global Britain in a Competitive Age” clearly outlines Russia as the most acute direct threat, and China as a systemic competitor. Nor do we lack policy goals in either direction. We aspire to be the leading European ally in NATO, and have the broadest, most integrated presence of any European partner in the Indo-Pacific, in support of mutually beneficial trade, shared security and values.

However, the best plans have to adapt to facts on the ground, so let us identify the challenge before us which, as the head of the Security Service put it the other day, is

“a contest of different worlds…between the liberal democrat model west and the more authoritarian model nations.”

In my view, that is only partly true, because we do—and should—work closely with nations and societies, whether in the middle east, Africa or Asia, that could not be described as following a liberal democrat model, but that may not wish for a change of global leadership.

In that new environment, we must think carefully about what our approach should be, and I believe the first thing is to define British interests, which include a global Britain, not a Britain decoupled from the world—as the head of the Security Service made clear, there is no need to cut ourselves off from the world. It involves understanding autocrats through engagement. In the context of China, that engagement very much includes forums such as the UK-China Leadership Forum, which brings British and Chinese leaders together to talk about issues of strong bilateral and indeed global interest. It includes the work of a Foreign and Commonwealth Development Office non-departmental body, the Great Britain-China Centre, and the all-party China group. That group has now run its first masterclass for Members of Parliament, so that we all have a better grasp of some of the issues, whether that is mainland China, the bilateral relationship, Taiwan, Hong Kong—whatever. Such courses play an important part in expanding our knowledge of the autocracies of the world. Engagement has suffered hugely from this pandemic. It has been terrible for engagement, as it is effectively impossible to travel to China or Hong Kong if one has to quarantine for three weeks, and that lack of physical contact is always dangerous in a more uncertain world.

Within that, our approach needs to consider a number of different things. First, careful scrutiny, not blanket prejudice, is incredibly important. Colleagues across the House have talked about not having any danger of prejudice against the peoples of Russia or China, as that would be contrary to everything that this House and democracies stand for. More trade and investment is a good thing; it brings countries closer together and ties us all in, while protecting our national security. Other colleagues have raised ways in which we can and should do that, and we have been too slow to do so.

We also need to define our positive interests as much as the things we dislike. There is sometimes a danger in this House that while we are good at criticising what we do not like, we do not make enough of what is positive—what is good about our own country, what we need to do more of, and how we can engage with the world more effectively.

[Sir Geoffrey Clifton-Brown]

Through his chairmanship of the all-party China group, my hon. Friend and neighbour has probably done more than anybody in this House to engage with China. One thing he has always done when engaging with China is to be absolutely frank with the Chinese where they have got it wrong, as well as where they have it right. Is that how we should go forward?

[Richard Graham]

My hon. Friend and neighbour is very kind. I have always felt it incredibly important that we stand up for our values, and for the past 11 years, as chair of the all-party China group, I have never accepted mainland Chinese sponsorship of the group. That is precisely because I knew that somewhere along the line, that would be perceived as the group being obliged to a nation overseas, with whose values we do not always align. I have always felt it incredibly important to speak truth to power, whether that is our own Ministers, who may not always relish that, or foreign countries. It is all about the tone and how we engage, understanding where foreign countries, in particular autocracies, are coming from. There is no need for us to compromise on our values, but there is every need to find a way of co-existing peacefully with countries that will be here for a very long time to come. Our greatest challenge will be how we balance those two things.

I will conclude by musing on the fact that the story of the 20th century is fundamentally a story of how nationalist autocracies underestimated the resolve of the democratic west to come together in defence of what we believe in. It would be the cruellest irony and the greatest shame if the same were now to happen in our own century. For all those reasons, it is even more important that we double, triple, quadruple our engagement with those of different values in different systems, so that we understand where they are coming from and are better prepared to unite in a strategic approach together, if need be, to counter threats to our own future.