Debate on the Address

Lord Redwood Excerpts

Wednesday 8th May 2013 Commons Chamber

[Mr John Redwood (Wokingham) (Con)]

I welcome the Prime Minister’s speech and the contents of the Gracious Speech.

I urge my right hon. Friend to telephone the President of the United States and say that it is high time Guantanamo Bay was closed down, which we read the President is minded to do. It is a moral blot on the west that people are still there without facing trial or being released for their liberty. If there are people for whom there is not enough evidence for a proper trial but about whom there are still legitimate worries, could they not be let out under surveillance? Surely it is high time we no longer tolerated that prison.

I strongly support what the Leader of the Opposition and the Prime Minister said about our armed forces. They have shown enormous strength, great professional service and huge bravery, especially in Afghanistan. I hope that the Prime Minister and the Foreign Secretary will move to get our troops away from risk and danger in Afghanistan as soon as possible. Some might have to stay there for longer, to provide training and support, but surely the Afghans are by now sufficiently trained to do the patrolling and take on the more dangerous tasks. They have the local languages and contacts. I want our troops out of risk and out of danger. So many have died. They have created the conditions in which the Afghans can now have a more secure future, so please now trust the Afghans and take our troops away from those risks.

I hope that the Prime Minister will be extremely careful about being dragged into any intervention in Syria. None of us likes what the regime is doing—the terror, the bombing and the huge loss of life is unacceptable —but we also know that the forces of opposition range from the friendly and those in favour of democracy and liberty to very different types of people whom we would not normally choose to be our allies. While I welcome the Prime Minister’s wish to use what diplomatic weight the United Kingdom has to try to find a solution, I hope that he will resist any hot-headed moves to commit our troops to Syria, whether directly on the ground or indirectly, and be very careful about the idea that killing some more Syrians might be a helpful contribution to an extremely dangerous situation.

I welcome the fact that the Gracious Speech has relatively few Bills in it. That is very good news. We legislate too much in this House, and we often legislate in haste and repent at our leisure. I think everybody would agree that this Government are trying to reform a very large number of things already. A lot of very complex legislation has been put through affecting many of our public services. Surely now is the time for Ministers to supervise those reforms and ensure that they are well thought through, properly administered and embedded, while the rest of us must subject them, and every penny of public spending that Ministers propose, to increasingly extensive scrutiny.

This Government face a mighty task. They inherited an extremely broken and damaged economy. All Ministers now need to lend their weight and their talent to dealing with that one central issue and not get too distracted by other things of interest abroad, and we in this House need to make sure that every penny they propose to spend is well spent, because the origins of our debt and borrowing crisis lie in an enormous surge in public spending. Unfortunately, some of that spending was not well judged and did not lead to the better schools and hospitals that all parties and people of good will want but, instead, added to the complexity, the unnecessary cost and sometimes the waste throughout the public services.

In order to promote this economic recovery, I hope that my right hon. Friend the Prime Minister will inject a new sense of urgency through his new energy Minister in the Department of Energy and Climate Change. One of the most oppressive things about our current economic situation is the very high energy prices that have been imposed on individuals, families and businesses, and we now need to regard cheaper energy as fundamental to getting better economic growth. Our American friends and competitors have energy prices 50% below our own for running industry, which these days is often more energy-intensive than labour-intensive. That is too big a gap, and it is a matter of great urgency. I hope the Government will look very carefully at ways to get energy prices down and to go for cheaper energy in the United Kingdom.

[Sammy Wilson (East Antrim) (DUP)]

Does the right hon. Gentleman agree that the pursuit of misconceived green energy policies has contributed to the problem that he is identifying—namely, that we are now one of the most expensive places to generate energy in Europe and as a result our industries are suffering as regards competitiveness?

[Mr Redwood]

I think that the Government need to re-examine the whole carbon tax regime, which is not imposed by our Asian or American competitors, and the balance of power generation for electricity, because we seem to choose to generate a rather high proportion by extremely expensive means. I would impose this simple test: is it going to work and is it going to be cheaper?

The Government would be wise to understand that we may not be too far away from an unfortunate conjunction of events on a cold winter’s day when there is no wind blowing and we are very short of energy. I am worried that a number of our important old power stations are being pensioned off or forcibly converted before we have put the alternatives in place. As the Prime Minister has rightly said, that should have been done by the previous Government, who spent 13 years arguing over whether to have new nuclear or new gas and did not put in place the replacement and back-up power that we clearly need with a strategy that relies heavily on wind and other intermittent renewables and where an EU set of rules requires us to close down prematurely a series of older power stations that we might still need.

Indeed, I would hope that one of the new energy Minister’s urgent decisions will be to ask for permission or derogation to keep open some of the older power stations for another two or three years while the Government put in place the necessary permits, licences and investment framework for the replacement power stations—which will, I think, have to be gas powered—in order to ensure back-up and security of supply. One of the important tasks of government in the overall task of keeping the country secure is to keep the lights on, and we need to do more to make sure that that is happening.

I hope that my right hon. Friend the Prime Minister will encourage the Chancellor to go further and faster in sorting out the banks. Some of us are extremely impatient about the way in which the Royal Bank of Scotland, the recipient of so much public subsidy and shareholding, is still not able to help finance a proper recovery. It is extremely difficult to have a strong economic recovery in this country at a time when our major bank is still undertaking such a massive slimming programme and trying to reduce its loans and exposure to risk because it got itself into difficulties under the previous regulators and remains in difficulties under the new regulators. There are regulatory fixes; I do not wish to go into the technical details, but I hope that my right hon. Friend the Chancellor will move quickly and more purposefully to split up RBS and create working banks to finance the faster recovery that all parties in this House clearly want.

That would also help with private infrastructure. Those on the Government and, I think, Labour Front Benches are keen to promote more large infrastructure projects, and it would be very good if they could be financed privately. We are many years beyond the initiation of that idea under Labour, and then under the coalition, but we are yet to see the commitment of large financing to the power, transport and wider broadband and other communications projects needed for economic development and to trigger more economic growth through the construction industry. I hope that more attention will be directed to tackling those issues.

I am very pleased that at the core of the Gracious Speech, as the Prime Minister said, is his wish to do more to control our borders sensibly. I am a free-enterprise free trader—I am all in favour of talent coming in and of diversity in our country. However, I think that most of us believe that far too many people came in far too quickly, creating difficulties for housing, health and other service provision. When new people arrive in our country, we want them, as well as the people already settled here, to enjoy a reasonable lifestyle and for that to be achieved at a pace with which the existing community is happy.

I think the big mood of anger that we saw in Thursday’s elections stems from the feeling that many people have that some of those who arrive in our country get free and easy access to public services and benefits before they become British citizens and valued members of our community. People ask, “Is this fair at a time of cuts, pressure and difficulty? Can we really afford to have hundreds of thousands of new people coming in who are immediately eligible for high-quality public services and welfare provision?” When we see the details of what the Prime Minister is suggesting, I hope that a fair and sensible system will be introduced.

In meeting the European Union obligations on the freedom and movement of workers, it would be a very good idea to say that while of course people can come in to take a job, that would not make them eligible to receive a welfare or top-up benefit of any kind, and that it would not give them automatic entitlement to a lot of fringe benefits for their wider family. It should be the free movement of workers, not the free movement of benefit-seekers. I believe that the contributory principle is enforced in other parts of the EU, so why do we not have a rule that says that people can get access to welfare benefits and services only if they have paid national insurance for five years, or—to cover those who are already settled here but who, through no fault of their own, have not been fortunate enough to have a decent work record—if they have been in full-time education in Britain for five years? We need to look at whether we can use that contributory principle to provide some discipline.

Something that is of great interest to the trade union movement and the Labour party, as well as to the rest of us, is the impact that high volumes of migration have had on wages. Because Britain has been such a welcoming home to so many people, it has seen a large number of migrants from the rest of Europe. That has undoubtedly acted as a damper on wage levels at the lower end of the market. Often, people of great talent and skill come in and do jobs well beneath their skill level for very low wages because they are better than the wages where they come from. Some of that is a good thing, but too much of it creates enormous difficulties because it means that people who have been here for many years or were born here cannot get a job, the overall level of wages is rather low and living standards are not as high as we would like. That causes anger and tension in local communities.

[Wayne David (Caerphilly) (Lab)]

Does the right hon. Gentleman agree that it would help if the minimum wage in this country was enforced vigorously?

[Mr Redwood]

I do not think that the minimum wage is high enough for a family. Our ambitions should be rather higher. It is a Labour cop-out to say that all the problems can be solved by enforcing the minimum wage. We all know that, on the whole, people do not live on the minimum wage, but get benefit top-ups. If people have family commitments, they of course need benefit top-ups.

I am talking about the justice of a system in which there are people in Britain who cannot get a job at all and lots of other people coming in from outside who are taking jobs on very low wages and expecting welfare top-ups, making it difficult to get the welfare bill down. That does not make any sense. There is a double bill for Britain: we have to pay the full welfare costs of the British person who cannot get the job and the top-up costs for the person who comes in from outside. Labour should take that point seriously and worry about it.

British people expect the Government, in trying to keep the country secure, to have the power to get rid of terrorist suspects and other unpleasant individuals who have, perhaps foolishly, been let in. I want the Government to appear strong and to be able to act strongly when necessary. There is huge public will for this House to gain powers that enable us to extradite people who are guilty of crimes or who are suspected of crimes and need to go elsewhere to be tried properly.

My final point is about Europe. I know that the Prime Minister is not keen to have a long debate on Europe. The trouble is that Europe is no longer a single subject; it is about the life that we lead. If we want to be sure that we can control eligibility to our welfare system, we have to sort out European welfare issues. If we want to extradite people from Britain, we need to sort out the European Court of Human Rights and will soon have to sort out the European Court of Justice as well, because there is an important European constraint on the power of Governments to act in that area. If we want to have cheap energy, we may well need to change European energy policy as well as our own. We can make immediate progress through derogations and permissions, but it would be far better to change the overall energy policy, because the whole of Europe is being damaged by its dear energy strategy, which allows America, Asia and others to take the jobs and markets that we need. We need to control our borders, keep the lights on and extradite people who deserve to be tried somewhere else. To do that, we need to sort out the European issue, as well as all the individual issues in their own right. I wish the Prime Minister every success in that.

I do not want to belong to a powerless Parliament. I do not want to belong to an impotent Parliament. I want to belong to a Parliament that can give redress to angry people outside if we think that they are right. I want to belong to a Parliament that controls our borders. I want to belong to a Parliament that settles our energy crisis. I want to belong to a Parliament that can legislate to finalise who has welfare entitlement and who does not. We are not in that happy position today. That is why I welcome the Prime Minister’s statement that we need a new relationship with the European Union. Bring it on as soon as possible and put it to this House of Commons, because without it this House of Commons is, indeed, impotent.

Tributes to Baroness Thatcher

Lord Redwood Excerpts

Wednesday 10th April 2013 Commons Chamber

[Mr John Redwood (Wokingham) (Con)]

It is a pleasure to rise so soon after two such outstanding speeches. On behalf of the House, I pay tribute to both the Prime Minister and the Leader of the Opposition, who captured the essence of Margaret Thatcher the woman, and the essence of Margaret Thatcher the politician and stateswoman. We are in their debt for getting our day off to such a superb start.

I wish to be brief, but I would like to put on record that Margaret Thatcher was the best boss I ever worked for. I was her chief policy adviser in the middle years and was subsequently able to advise and help her a bit as a Member of Parliament and a junior Minister.

Margaret Thatcher was that great figure because her private side was so different from her public side. Yes, many people beyond the House remember the woman who was so powerful in argument and so fierce in conviction, but those who worked with her closely saw someone who worked incredibly long hours with great energy and diligence because she was so keen to get it right.

Margaret Thatcher took a very wide range of advice. When people worked with her and put an idea to her, not only did they need to produce all the evidence and the facts and go over it many times, but they knew that person after person going to Downing street would be given it as a kind of test. They did not know that they were part of a running focus group, but one’s idea was in front of the guests, who were asked to shoot it down, because she was so desperately concerned never to use the power of the great office without proper thought. She was also keen to ensure that, before she did anything, she knew what the criticisms would be and what might go wrong with it, because she had tested it to destruction. There is a lot to recommend that approach to those who are making mighty decisions—they should spend time and take trouble, go to a wide range of advice, and ensure that something works well before it is put out there.

Margaret Thatcher came, in the middle of her period in office, to be the champion of wider ownership and wider participation. To me, that was her at her best—when she could reach out beyond the confines of the Conservative party, which she led so well in those days, and beyond the confines of her fairly solid 40% voting support, much more widely in the county. A Prime Minister can become a great national leader when their ideas resonate more widely, and when their ideas become popular with, or are taken up by, those who would normally oppose them.

That spirit of Margaret Thatcher—she had fought her way as a schoolgirl to Oxford, as an Oxford graduate to Parliament, and as a parliamentarian to the Cabinet—made her feel that opportunity was there for people. However, she recognised that it was very difficult, particularly for women and people from certain backgrounds, and always told us that it did not matter where people came from or who their mother and father were, and that what mattered was what people could contribute. That, surely, is a message that goes way beyond the confines of the Conservative party or the years of her supremacy in Parliament. We should all remember that.

When we tried to produce policies to reflect that more generally, we came up with an idea. Owning a home had been the privilege of the richer part of society, but we wondered why everyone or practically everyone should not aspire to it. That is when the council house sale idea gathered momentum. Many Labour Members in the early days were very unhappy—debates on the policy remain—but an awful lot of Labour voters and even some Labour councillors decided it was a really good policy and joined us on it. It was one of those policies that reached out so much more widely.

We tried to extend the idea to the ownership of big and small businesses with a big programme of wider share ownership, and with the employee and public elements in the great privatisations. Margaret Thatcher was determined to try to get Britain to break out of the debilitating cycle of decline that we had witnessed under Labour and Conservative Governments in the post-war years.

I have just one fact that the House and those who are worried by the depressing number of jobs lost in the 1980s in the pits and steel industry might like to bear in mind. The newly nationalised coal industry in the early 1950s had 700,000 employees; by the time Margaret Thatcher came to office in 1979, only 235,000 of those jobs were left. There had been a massive haemorrhage of jobs throughout the post-war period. Similar figures could be adduced for rail, steel and the other commanding heights. It was that which drove her to say that there must be a better answer and a way of modernising the old industries and bringing in the new industries. One of her legacies is the modernisation of the car industry, which gathered momentum under the Labour Government and, more recently, under the coalition.

Margaret Thatcher’s other great triumph, as the Prime Minister mentioned, was to extend her argument to a much wider audience around the world. The ideas of empowerment, enfranchisement, participation, breaking up industries, allowing competition and new ideas, and allowing the public to be part of the process were exported and took off around the world. That lay behind much of the spirit of revolution in eastern Europe which led to the bringing down of the Berlin wall. If there is a single picture of the Thatcher legacy that I will remember, it is the tumbling of the Berlin wall and the realisation that the path of enterprise and freedom that has been adopted by all the democratic parties in this House is the right approach, and that tyranny and communism do not work.

We are discussing a great lady, a great stateswoman, a huge personal achievement and a very big achievement politically. At its best, it was an achievement that broke free from conservatism and party dogma, and which showed the world that there is a better way, a democratic way, a freedom-loving way.

European Council

Lord Redwood Excerpts

Monday 11th February 2013 Commons Chamber

[The Prime Minister]

The right hon. Gentleman is right to raise this. The Commission proposal—heading 5, on EU bureaucracy—was €63 billion over the seven-year-period. That was cut back to €61.6 billion, but it is disappointing. Looking at levels of pay, levels of benefit and some of the special payments that people receive, there is a range of reforms that could be made. We must go on arguing for them in the annual budget process and go on working with allies. I think it is now understood across Europe that there are generosities that simply are not defendable.

[Mr John Redwood (Wokingham) (Con)]

I congratulate the Prime Minister heartily on a very professional outcome to the negotiations. Will he take this opportunity to ask all party political leaders in this country to urge their MEPs to uphold this deal and to vote for it in the European Parliament? I am sure Conservatives will, but the public would not take kindly to being let down by MEPs after he has done so well.

[The Prime Minister]

My right hon. Friend makes an important point. All the UK MEPs account for a decent percentage of the European Parliament, so it makes a real difference if socialist MEPs and Liberal MEPs from Britain vote for this budget, and they should do so in an open, transparent manner. The idea of having a secret ballot in a Parliament seems to me completely wrong. The fact is that you send MEPs to Brussels—and, regrettably, to Strasbourg—so you can see what they do on your behalf.

Succession to the Crown Bill (Allocation of Time)

Lord Redwood Excerpts

Tuesday 22nd January 2013 Commons Chamber

[Mr John Redwood (Wokingham) (Con)]

One of the worst constitutional innovations of the previous Government was their decision automatically to timetable every piece of legislation they brought before this House, which I regretted and opposed at the time. When the coalition Government took office, I was very pleased with their language, because they told us that they were committed to a stronger democracy and a stronger Parliament. What better proof could there be that they not only have those beliefs, but wish to put them into action, than that they not automatically timetable every Bill brought before us?

I rise to speak on the timetable motion because there is a feeling in the House that it is wrong and because it relates to a constitutional Bill. If there is any kind of legislation that should be hammered out and discussed in full on the Floor of the House, it is on matters relating to our constitution. We are the custodians of the constitution. That constitution either expresses the freedoms we believe in or it lets us down, depending on our point of view and the state we have reached. It would be a great day if the Deputy Prime Minister, a former lover of freedom and of an independent Parliament, rose from the Front Bench and said, “I hear what you say. We will give you the freedom to debate this at the length of your choosing.”

Often when we have guillotines, we find that legislation is rushed through with insufficient consideration. Last night an important Bill went through with a big chunk of work left undone by the House of Commons, which means we have to leave it to the House of Lords. There is no reason for that. We could have a few more sitting days, or we could stay here a little later in the evenings. Some of us want to do the job properly and time should be made available for that.

It is even more important to allow proper consideration on something of this magnitude. We have heard today from hon. Ladies and Gentlemen who have a range of very different views on the country they belong to, the oath they wish to swear and the allegiance they wish to show. We are going to the heart of what this nation is, how it expresses itself and how it represents itself at the highest level. I think that it is quite wrong to shorten debate on that. It might be that when we get to the debate we will not need much more time than the Government have allowed, but surely they can trust a free Parliament. Surely, on this issue, they can let Parliament have its way and discuss what it wishes for a reasonable length of time.

Before the Labour Government, previous Governments always reserved the right to introduce a guillotine motion if they felt that the Opposition were behaving unreasonably and not allowing sensible progress to be made. All democratic Oppositions ultimately agree that Governments have a right to get their legislation through if it has been properly advertised and argued for in general elections. Surely, on this issue, this is the time for the Deputy Prime Minister to strengthen his reputation, make his name with a blow for freedom and allow us to speak for as long as we wish.

European Council

Lord Redwood Excerpts

Monday 17th December 2012 Commons Chamber

[The Prime Minister]

The right hon. Gentleman makes an extremely good point. This is not a fully fledged banking union; it is simply the first step in terms of a single supervisor. A banking union as we in the United Kingdom would know it would cover the resolution of problems in banks and deposit guarantees. If a bank in England, Scotland, Wales or Northern Ireland has problems, it does not make any difference because we have a proper banking union. They are a long way from that in the European Union. The point I was making is that these discussions are going to go on for quite some time, because they involve big issues of national sovereignty, so it will take time before they get a banking union.

[Mr John Redwood (Wokingham) (Con)]

If we are to have growth in Europe, we need to have banking reform both to recapitalise the banks and to write off the bad loans and assets. Is there any timetable for raising the huge sums that the euro area will need to capitalise its banks, and when is the ECB going to make the Spanish and other weak banks in the system write things down to a realistic level so that we can start to trade away from the disaster?

[The Prime Minister]

My right hon. Friend asks an important question, which reminds me that I did not answer the former Chancellor’s question about the Spanish banks. There will be opportunities to deal with that, but in the light of the way in which this is being structured, further progress will need to be made under the banking union proposals before the sorting out of Spanish banks can take place. Many in the eurozone would argue that all those delays are damaging to the future of the eurozone. On bank recapitalisation, stress tests have been carried out in Europe, although some people argue about their robustness, but that was not the focus of discussion on this occasion. This was not so much about banking capital as about the process of a banking union.

European Council

Lord Redwood Excerpts

Monday 22nd October 2012 Commons Chamber

[The Prime Minister]

I hate to disappoint the right hon. Gentleman, but we are not having an in-or-out referendum on the European Union tomorrow. I want us to achieve a new settlement between Britain—the United Kingdom—and the European Union and to put that new settlement to fresh consent. That is what should happen. I think that the idea of an in/out referendum is wrong, because I neither support the status quo nor think that leaving is the right answer.

[Mr John Redwood (Wokingham) (Con)]

I warmly welcome the Prime Minister’s wish to have a new settlement with the European Union and encourage him to negotiate just that. Is not our veto over a six-year budget perspective for which the others want a huge expansion of spending the opportunity to negotiate that new settlement?

[The Prime Minister]

The point about the European budget is that we need to maximise our negotiation leverage on that specific issue, as we are part of this union and we want it to have a sustainable budget. As I wrote in the letter of 18 December 2010,

“payment appropriations should increase, at most, by no more than inflation over the next financial perspectives”—[Interruption.]

The shadow Chancellor asks from a sedentary position what our leverage is, and it is very simple. The decision must be agreed by unanimity. Tony Blair, when he sat in that seat, gave up our rebate without any need, but we will not do that.

House of Lords Reform Bill

Lord Redwood Excerpts

Monday 9th July 2012 Commons Chamber

[Mr John Redwood (Wokingham) (Con)]

I entirely agree with the Deputy Prime Minister that the people need to be part of the process and feel that Parliament belongs to them, so will he give them a vote on his proposals?

[The Deputy Prime Minister]

I think that a referendum is not justified in this instance, for the following reasons: first, unlike other issues that are a source of great disagreement here, all three main parties are committed to delivering House of Lords reform, by way of their own manifestos, which they put to the British people at the last election, the one before that, and the one before that; secondly, it would be very expensive—£80 million—for something on which we are all supposed to agree; and thirdly, it would detract attention from the much more important referendum taking place in this Parliament: the referendum on the future of the United Kingdom.

EU Council

Lord Redwood Excerpts

Monday 2nd July 2012 Commons Chamber

[The Prime Minister]

I have great respect for the right hon. Gentleman, and what he says about the eurozone agreements at the weekend is absolutely worth listening to and having regard to. The point I would make is that for the first time in a long time there was a series of steps that countries such as Britain had been calling for about using the facilities to buy bonds and about direct recapitalisation of banks. They are hedged around with all sorts of ifs and buts, but that was progress. On the truth and reconciliation commission issue, I note that the right hon. Gentleman said that a full independent public inquiry is not the right way ahead. I think the way ahead we have suggested will be swift enough, but also strong enough to get to the answers—and to get to them quickly.

[Mr John Redwood (Wokingham) (Con)]

Given that there is practically no unpledged money left in the current bail-out fund and given that the new bail-out fund does not exist, did the member states assembled discuss how they are going to get hold of the £500 billion or more that they might need, and are they proposing to borrow it on the credit rating of countries such as Spain and Italy?

[The Prime Minister]

As ever, my right hon. Friend is incisive at getting to some of the difficulties in what is being proposed. I think we should be pushing the eurozone members into taking the short-term steps to try to help with financial stability, which buying bonds, directly recapitalising banks and sorting out issues of seniority are all about. We have to recognise the great difficulties they are going through in trying to raise adequate amounts of finance, but none the less it is in our short-term interests that they do deal with the crisis at the heart of the eurozone, because the high interest rates in Italy and Spain are not only hurting Italy and Spain; they are hurting us, too.

Rio+20 Summit

Lord Redwood Excerpts

Tuesday 26th June 2012 Commons Chamber

[The Deputy Prime Minister]

I think that it was right for us to take the extra time to secure a firm evidence base in regard to those areas. We are not abandoning the agenda; we are trying to do our job as thoroughly and rigorously as I know the right hon. Gentleman would expect.

[Mr John Redwood (Wokingham) (Con)]

The UK hit the Kyoto targets, while a number of our leading European Union competitors signed up with a fanfare but came nowhere near hitting them. Is there any sign now that those European big energy-using countries will do better in the future?

[The Deputy Prime Minister]

My own view is that any developed economy will serve itself best by moving towards an energy mix that is diverse, sustainable, and not over-reliant on unreliable forms of energy and very volatile global prices. I think it is a good thing that we have been leading that agenda in this country while also meeting our Kyoto targets. Those activities are not inconsistent with each other, and I personally rebut the idea that a shift of that kind is incompatible with highly competitive economies.

Civil Service Reform

Lord Redwood Excerpts

Tuesday 19th June 2012 Commons Chamber

[Mr Maude]

Performance pay is always controversial, whether in the public or private sector. The paper suggests that a voluntary earn-back scheme, such as that suggested by Will Hutton in his report on fair pay, might be worth considering. We will invite the Senior Salaries Review Body to consider such a scheme for the senior civil service. Civil servants would be invited to put, say, 5% of their basic pay at risk, so that they have to earn it back, with the possibility of exceeding it with exceptional performance. That would not feel like a one-way bet.

[Mr John Redwood (Wokingham) (Con)]

How will these reforms enable the civil service to deliver much higher quality and with greater accuracy, given the high error rates typical in areas such as benefit distribution?