Armed Forces Commissioner Bill

James Cartlidge Excerpts

Report stage
Tuesday 21st January 2025 Commons Chamber

[Lincoln Jopp]

I think the hon. Member will recall from his time on the Bill Committee that the Front-Bench spokesman, my hon. Friend the Member for South Suffolk (James Cartlidge), referred to us as fulfilling the role of critical friend.

[James Cartlidge (South Suffolk) (Con)]

Exactly.

[Lincoln Jopp]

I offer these comments as a critical friend. I think it important for people listening to this debate and referring to our proceedings at a later time to realise that, utterly untrammelled, these measures will generate a bureaucracy all of their own. We do not wish this to be a good idea that we have in peacetime that becomes a massive hindrance as we approach a period of conflict.

--- Later in debate ---

[James Cartlidge]

I congratulate and thank all right hon. and hon. Members who have contributed to the passage of the Bill and served on the Bill Committee. As I said on Second Reading, we recognise that the Government have a clear mandate for this piece of legislation, which has the worthy goal of improving day-to-day service life in our armed forces. We strongly share that goal and want the Bill to succeed, but, as my hon. Friend the Member for Spelthorne (Lincoln Jopp) said, we also have performed the role of a critical friend of the Bill and have raised a number of specific issues. The shadow Veterans and Armed Forces Minister, my right hon. Friend the Member for Rayleigh and Wickford (Mr Francois), raised important points, which we have put forward in amendments. In fact, both relate to tax measures that have come forward under this tax-raising Government on death in service and continuity of education allowance, known as CEA.

The key thing I would say on death in service, in response to what the Minister said on Report, is that of course we understand that a consultation is happening on inheritance tax, which expires tomorrow. What we want to know is that the Ministry of Defence has communicated to the Treasury that it opposes the measure and hopes that it will not be imposed on those who serve in our armed forces, because it would be a disproportionate and significant increase in inheritance tax. As my right hon. Friend put it in a moving speech about the impact it would have, I am sure none of us in the Chamber would want to see that, so we hope that the Minister has written to the Treasury and that it listens to his advice and cancels the proposal.

There is a very simple reason why we moved amendment 10 on the continuity of education allowance. We want the Department to continue monitoring the impact of the new tax on those who serve in the military and choose to send their children to independent schools, not least because of the stability that those schools provide in a life that is subject to the opposite, particularly for those who are deployed abroad. The allowance gives them stability through access to schools at which their children can board, and of course most of that capacity is in the independent sector, which is now subject to a huge 20% tax imposition. We want that monitored by the Armed Forces Commissioner. If anyone doubts the reason for that, our office has received many emails from serving personnel—people in the Army, Navy and Air Force today—who are extremely concerned about the impact on them, and are having to weigh up their future. I will read an extract from one email that I received from the wife of an Army officer with two children in boarding school—one in junior school, and one in senior school. She says:

“With the sudden introduction of VAT on school fees—something that was not foreseen when we made our decision—we will face an additional £14,500 per year in costs. This is simply not sustainable for our family, and my husband is now considering leaving the Army as a result.”

This is not a minor matter. If we are worried about retention, surely the last thing any of us wants is for people like that to consider leaving. We are disappointed that the amendment was defeated, but the parliamentary arithmetic speaks for itself.

Finally, on accommodation, which is an incredibly important issue, I remind the House of what I said on Second Reading. I said that, in my time as Minister for Defence Procurement with responsibility for the defence estate,

“I wanted to see us potentially buying back the defence estate in England and Wales from Annington, so that we could plan a full rebuild and regeneration of the estate”.—[Official Report, 18 November 2024; Vol. 757, c. 78.]

I am delighted that since I said that, the Government have concluded that deal. I started the negotiations on the deal when I was a Minister, following the successful legal challenges initiated by the preceding Minister for Defence Procurement, Jeremy Quin, and the deal was brought forward with huge effort in the Department—particularly, I must say, from the Defence Infrastructure Organisation. DIO has come in for criticism in some reports—in response to the winter problems that we had two years ago, for example—but my experience was that its leadership was as passionate as I was about getting that deal through, and we are now in a far better position.

Why does that matter? Well, there are many welfare issues that the commissioner will have to think about, but as the Liberal Democrat spokesperson, the hon. Member for Epsom and Ewell (Helen Maguire), said, accommodation will surely feature prominently, and we now have the means to address that issue strategically, rather than through year-to-year sticking-plasters. I assure the House and Ministers that, given my role in driving that deal forward, I and my right hon. Friend the Member for Rayleigh and Wickford, who shares my passion for housing and armed forces accommodation, will seek to contribute to the plan to move forward to a better defence estate. In the meantime, we look forward to continuing to engage on these matters as the Armed Forces Commissioner becomes a reality.

Question put and agreed to.

Bill accordingly read the Third time and passed.