Civil List

Jacob Rees-Mogg Excerpts

Thursday 30th June 2011 Commons Chamber

[Mr Edward Leigh (Gainsborough) (Con)]

It is a pleasure to follow the right hon. Member for Barking (Margaret Hodge), who is the current Chair of the Public Accounts Committee. Under my chairmanship and hers, the Committee has for many years fought a relentless campaign on this issue, but I never thought this day would come. My right hon. Friend the Chancellor has risen to such distinction, but I remember his being a member of our Committee when he was a very new, young Member of Parliament, and he may recall a visit we made to Kensington palace together. The trouble with dealing politically with royal family matters—I know this from my many years of chairing the Public Accounts Committee—is that whereas an incredibly worthy report about tens of millions of pounds, or even hundreds of millions of ponds, being wasted in the Department for Work and Pensions will end up only on page 15 of the Financial Times, if we are lucky, something involving the royal family gets much more interest. I think that the visit we made to Kensington palace was on pages 2, 3, 4, 5 and 6 of the Daily Mail. There is enormous public interest where the royal family is concerned.

My right hon. Friend is to be commended for being the first Chancellor of the Exchequer to have the guts to take this issue on and deal with it. As I said, I thought this day would never come. When we started this campaign and really tried to gear it up, we were looking at three areas in which we thought that parliamentary accountability was absolutely vital: the royal family and all aspects of royal finances, the BBC and the Bank of England. Those three great institutions stand without Parliament and we were told for all sorts of reasons why it was quite inappropriate for the National Audit Office to crawl all over their accounts. It has been like pushing water uphill, but I think that after many years and many bloody battles we are going to drag the BBC to full accountability—and not a moment too soon. That is quite right. Again, I commend the Chancellor for what he is doing. The Bank of England is a more difficult issue and we are still struggling on that, but we have a great victory today. For the first time since this modern settlement was made in 1760, Parliament will, through the Public Accounts Committee, be able to scrutinise all aspects of royal finances.

Although there has been great resistance to this proposal, I have to say that in all my many conversations with the royal household I never detected any resistance from it. I think it has been Governments who have worried about certain republicans on the Public Accounts Committee crawling over the royal finances. I should like to pay tribute to a great and wonderful parliamentarian, who has not been mentioned yet and who is a personal friend of mine—Mr Alan Williams, a former Father of the House, who served with great distinction for many years on the Committee. We all know that he gave the royal finances a good going over. Unfortunately, another personal friend of mine, the hon. Member for Glasgow South West (Mr Davidson), is not here, but I am sure that if he were still on the Committee he, too, would be giving the finances a good going over.

This will be tough for the royal household—there is no doubt about that—and there will be strong questioning in the Committee, as there is on all these subjects, but that is absolutely right because that is what we are about: accountability. I think they have absolutely nothing to fear. As the shadow Chancellor made clear—we do not need to labour this point, because we all know it so well—the Queen has throughout her reign acted with incredible grace and wisdom and with such enormous constitutional propriety. We know all that, but what is not so well appreciated—certainly not by the general public and perhaps not by many Members of Parliament—are the enormous strides that the household has made in delivering efficiency savings and cutting costs. I am pretty confident that when the Committee, working with the National Audit Office, is allowed to crawl over the accounts, it will find a first-rate, modern institution.

It is unfortunate that up to now the Committee has been able to deal only with royal travel and palaces and not with the rest. That seemed a strange state of affairs. We managed to save the royal train, by the way, which is, in terms of modern accountability, a fantastically wasteful but noble instrument of royal travel. [Interruption.] It is necessary. It is so old that it can only travel at night.

[Jacob Rees-Mogg (North East Somerset) (Con)]

rose—

[Mr Leigh]

I give way to an ornament of the constitution.

[Jacob Rees-Mogg]

My hon. Friend and his colleagues saved the train but unfortunately not the yacht. Is there any chance that for the diamond jubilee we will get the yacht back?

[Mr Leigh]

Well, some stingy previous Government, whom I will not mention by name, got rid of the royal yacht. What a tragedy. It is not the working part of the constitution but it is an important part. As for the royal train, it is quite right that this wonderful elderly lady should sometimes be allowed to sleep on the royal train so that when she visits Newcastle or Manchester she can wake up and perform her duty refreshed, and not be forced out of bed at 5 am to take a plane. We saved the royal train; that, I think, is something that the PAC achieved.

The PAC, then, will not cause any unnecessary trouble. Although I cannot speak for the new Committee, I have great respect for the right hon. Member for Barking, and I know that she will handle the matter in an effective and completely non-partisan way. I am sure that the Committee will do a wonderful job.

Before I finish, I want to say something about royal palaces. We paid that visit to Kensington palace, and we visited Buckingham palace. We found a lot of peeling wallpaper there—there was a lot of under-investment.

--- Later in debate ---

[Michael Ellis]

The hon. Gentleman may not, but others may choose to do so. In fact, I happen to think that the 1760 arrangements were an historic injustice to King George III and his heirs and successors. There is every reason to say that if the hon. Gentleman is not happy with the arrangements being proposed, perhaps the royal family could sustain having 100% back.

[Jacob Rees-Mogg]

Hear, hear!

[Michael Ellis]

I see that that idea is getting agreement.

--- Later in debate ---

[Mr MacShane]

The hon. Gentleman, from a sedentary or kneeling position, asks why not—

[Jacob Rees-Mogg]

Will the hon. Gentleman give way?

[Mr MacShane]

Of course.

[Jacob Rees-Mogg]

It seems a little bit mean to object when the royal family employ someone, and then object when they save a bit of money by taking a free flight. I do not think the right hon. Gentleman can have it both ways.

[Mr MacShane]

I am trying to choose my words carefully, because this is a serious matter. Serious questions would be asked if any Government Minister, acting on behalf of the nation, were to start hopping around in oligarchs’ planes—

--- Later in debate ---

[Jacob Rees-Mogg (North East Somerset) (Con)]

I know there is a great wish to debate Epping forest, a matter of enormous interest, so I will try not to be unduly long-winded.

So far in the debate, we have missed a crucial point. We have just focused on the cost of the monarchy, but our sovereign represents the greatest institution in our land; it is that bit that makes us British, and we do not want a mean monarchy. We want a proper and well-funded monarchy, not a bicycling monarchy, even if riding the Mayor of London’s bicycles.

The subject of this debate encapsulates the connection the monarchy gives us to our history. What did the Commons spend its time debating in the 16th century? It spent its time debating that the King should live of his own: that the King—Henry VIII for much of that era—should be able to use his own resources to provide for all he needed to spend. This debate returns us to that same principle.

The Crown Estate provides an extraordinary link with our history. We could probably find some acre of the Crown Estate somewhere—probably in Somerset—that was the property of Alfred the Great, but we would certainly find that there was property in the Crown Estate that came with William the Conqueror and from the dissolution of the monasteries. St James’s palace started as a leper colony founded by Queen Margaret in, I think, 1118. It was then part of the endowment of Eton college, which was, very tactfully, given back to the Crown by Eton when Henry VIII said, “If you don’t give it back, I’m going to dissolve you.” [Interruption.] That was a missed opportunity, I think some on the Labour Benches are saying. The Crown Estate is an extraordinary link with our history, which is what makes us the country—the United Kingdom—that we are. Some attack that and say, “We want a good value monarchy.” That makes Her Majesty sound as though she is something to be bought off the top shelf at Tesco, and it really cannot be how we wish to approach our constitution. The Crown is an essential element of that constitution; everything of importance that happens is done in the name of the Crown.

The hon. Member for Newport West (Paul Flynn) said that he wanted the royal family to be treated as any other family but, as my hon. Friend the Member for Northampton North (Michael Ellis) pointed out, if they were any other family they would not be paying such a high tax rate. Given the 15% provision, Her Majesty will be expected to pay an 85% tax rate, which is more than the 50% tax rate that many of us hope will go over the course of this Parliament.

[Paul Flynn]

Over the years we were kept in ignorance of the royal tax rates and it was only as a result of a campaign in this House about 12 years ago that we were given any information at all about this. I would welcome it if the hon. Gentleman is asking for full transparency on the royal taxes, but I am not sure that that is part of the suggestion before us today.

[Jacob Rees-Mogg]

I clearly have not asked for full transparency on the royal tax affairs. Indeed, I would argue for the precise opposite, because I do not think it is particularly sensible to be investigating in close detail how the royal family spend their money. I recall a line about motes and beams; we have had quite a problem with our own expenditure in this House and I am not sure that we have got things entirely right. Before we start criticising the monarchy and looking over every biscuit that the Queen buys, we should make sure that we have our own house in order.

[Mr Kevan Jones]

The hon. Gentleman would not be suggesting that a way of controlling the royal household would be to have the Independent Parliamentary Standards Authority running it, would he?

[Jacob Rees-Mogg]

I would most certainly not be recommending that IPSA comes anywhere near our sovereign.

When the Crown Estate was granted in 1760 by George III, at the same time as he gave up his claim as King of France, the monarchy was in deficit and it needed extra money to fulfil the functions that were being fulfilled. Some of those functions were greater than those now paid for by the civil list. That is all certainly true, although Parliament would vote excess resources to pay for things such as the Army, so my hon. and noble friend the Member for Caithness, Sutherland and Easter Ross (John Thurso) was not entirely fair on the point about paying for the Army.

Now the Crown Estate is in substantial surplus and I think that the Chancellor, in his proposals, which in many ways are very good, may be being somewhat canny, because the next sovereign would be able to cancel this arrangement and say, “I should like £200 million a year, thank you very much.” There is no requirement on a new sovereign to agree to hand the Crown Estate over in return for a civil list. The hon. Member for North Durham (Mr Jones) said that this is taxpayers’ money and not the Crown’s money, but it really is the Crown’s money because, on becoming King, the Prince of Wales or any other sovereign could simply rescind the agreement and claim it back. The Crown Estate is the sovereign’s property, which the sovereign gives to Parliament to help to pay for the costs of the nation; it is not taxpayers’ money that is being handed over. [Interruption.] Does the right hon. Member for Morley and Outwood (Ed Balls) want me to give way?

[Ed Balls]

indicated dissent.

[Jacob Rees-Mogg]

No, he is going to let me carry on. As a result of what I have described the Queen is paying a higher rate of tax than anybody else. We should remember that and I hope that the Chancellor will be generous. I would like the 15% provision to be increased because we want to have a glamorous monarchy that befits the status of our nation. We are a great nation, a noble nation and a nation that has had power across the globe in the past. We have one of the finest histories of any country in the world. When I see the coronation coach being pulled through the streets of London, I want to see it being pulled by the finest horses that money can buy and I want to see it gilded with the finest gold that can be bought. I want Her Majesty to have as a jubilee present the finest window that can be funded by Members of Parliament. That is the status of monarchy that we want and I urge the Chancellor to remember that. Even though I know that we are in this time of austerity, that we are all in it together and that the Opposition spent all the money, maxed out the credit card and so on, we should look after Her Majesty.