(1 year, 6 months ago)
Commons ChamberIt is a pleasure to follow the hon. Member for Newcastle upon Tyne North (Catherine McKinnell). I wish to thank our armed forces for what they do both here at home and in many countries across the world. They are a credit to our nation. Bearing in mind that the defence of our island must be any Government’s top priority, these debates are important, not least when we face a world that is as unstable as it has ever been in my lifetime.
I note that the heading of this debate is “Global Military Operations”. Those operations are set: first, by the Government’s priorities; secondly, by what we can afford; and, thirdly, by our obligations, not least to NATO. Having served in the armed forces for nine years, and been in this place for 13 years, four of which have been with the Defence Committee, I have seen Prime Ministers and some Ministers struggle to clarify the scope and structure of our armed forces and to fund them properly. I exclude the current set of Ministers who are doing an outstanding job. My criticism goes straight to the Treasury in the main. To be fair to the Government, world events have a nasty habit of changing, as yet another defence review—a “refresh” of the previous one—highlights, and this while the world stands on the edge of an abyss with another murderous war taking place in Europe and, worryingly, on NATO’s borders.
Since the end of world war two, we have not faced a top-tier opponent, but that threat is very real today with both China and Russia raising the threshold. I quite accept that conflict on this scale would be fought with allies, not least the US. But as the right hon. Member for Birmingham, Hodge Hill (Liam Byrne) mentioned the Falklands war—let us hope we never have to go back there again. Many of my friends served when I was in in 1982—let me say that, as the Falklands is one of our main dependants, the question for this or any Government is: can we retake the islands in the event that they are invaded? If we cannot, clearly, we are failing in our duty.
While the US gears up for major conflict, I do not detect the same sense of urgency here. To deter war, one needs to prepare and train for it, with sufficient mass to sustain a lengthy conflict. On that point alone, we must reverse the decision to cut the Army by 10,000. Everywhere the Defence Committee has gone—although I can speak on my own behalf—I have heard that our armed forces are stretched to breaking point.
I said at the start of my speech that a Government’s top priority must be the defence of our island nation. That is essential, of course, but this debate is about our global reach, which requires more funding for more planes, more ships and more soldiers. It is clear from the Committee’s evidence sessions that the pitiful 2%— or just over—of GDP that is spent on defence is not enough. It clearly is not. It was more than 5% in my day, and since then the kit has become more expensive and our requirements and obligations even greater.
If we are to play our part globally, along with our allies in most cases, we must fund our armed forces to allow them to do the job that we in this place send them to do. It is our responsibility. We cannot ask them to do things without the kit, the manpower or whatever they need to do the job. If we do, we are failing in our duties.
Global reach and influence are of huge significance, as China is showing. Too few politicians, regrettably, have understood the significance of a military presence around the world and the diplomatic and economic benefits that flow from it. An effective presence costs money—money that politicians all too often divert to other priorities. I mentioned China, whose economic and military reach around the world are expanding at an alarming rate. China appreciates that the world’s resources are not limitless and that, to ensure its security, those resources need to be identified, secured and protected.
The war in Ukraine is a wake-up call, if ever there was one. I pay tribute to the Prime Minister, to his predecessor and to Members on both sides of the House who have stood together on this issue; long may that be the case. Many European countries, not least Poland, Germany and France, are increasing their defence budgets. Political leadership is what we badly need if we are to fund our armed forces sufficiently to meet the inevitable rise in our global responsibilities. To be fair, our brave men and women are already operating in many countries, as we have heard, and very effectively. That is to their great credit, but greater mass is needed for the reasons I have stated.
Looking back in history, we have a rather poor record on being prepared for major conflict. The peace dividend that followed the end of the cold war saw a major disarmament, to the extent that we now struggle to find one fighting division where it is needed, as my right hon. Friend the Chairman of the Defence Committee stated.
May I not? I have little time left and I know others on the right hon. Gentleman’s side of the House particularly want to speak.
At the start of world war two—
In that case, may I reverse my decision? I would be delighted to hear from the right hon. Gentleman.
I am very grateful. I wanted to underline the point the hon. Gentleman is making so eloquently to the House. The risk is even greater than he has set out, because global defence spending is now rising by between $200 billion and $700 billion a year. If we want to keep pace with that, defence spending is going to have to rise.
(13 years, 8 months ago)
Commons ChamberAll unemployment fell. Then, once the scale of the global recession we confronted became apparent, it of course went back up again. What we never had under a Labour Administration is unemployment going up through the 3 million mark—not once but twice, as it did under the Conservatives. Every job lost is a tragedy for one family, and all the jobs lost are a tragedy for all of us—and, indeed, for the Exchequer. Lost jobs mean not only that our performance as a country cannot match our full potential, but that a bill is created that we all end up paying.
The Governor of the Bank of England has warned us of what is to come. He says that we now confront the biggest squeeze on living standards since the 1930s, and that because this Government’s economic plan is creating so few jobs, there is less and less demand for workers. Now there are five people chasing every job and the growth in people’s pay packets and wages is slow. The Office for Budget Responsibility forecasts 2% earnings growth this year, 2.2% next year, but when prices are growing by more than 5% this year and 3.6% next year, the squeeze on family budgets is now all too obvious.
In the circumstances, one would have thought that the Government would step in to help. Not a bit of it. Next month 10 Tory raids on the family budget get into full swing: tax credits cut for families earning more than £40,000; tougher criteria on families wanting to claim family support; reducing the income disregard; freezing basic rates of working tax credit; removing the baby element of child tax credit; reducing payable costs of child care; abolition of grants for pregnant mums; £500 taken away from families with more than one child; child benefit increases ruled out for another three years; and cancelling the child savings accounts.
This Government are proud of some of the measures foisted on them by Liberal Democrat Members. I am sure that is right. Once we take this list into account, however, £1.1 billion is going to be stripped from family budgets starting from next month, with another £300 million coming from children. By the end of this Parliament, £16.5 billion will have been taken out of family pay packets.
No.
Why are the Government not doing more to help? Because the cost of economic failure is sending the benefits bill through the roof. Last week we learnt from the detail of the Budget book just how big that bill has now become.
This afternoon the Secretary of State liked to boast about his reforms of housing benefit, but forgot to tell the House that the housing benefit bill is projected to rise by more than £1 billion in the next few years. In the small print of the Budget we saw something more: his benefits bill over the next few years is now projected to increase by £12.5 billion. That is £500 for every household in the country.
Almost as shocking is what will happen to the unemployment bill as a result of the Secretary of State’s great endeavours to get so many extra people back to work. When the Chancellor came to the House last year, he somehow forgot to tell us that as a result of his Budget higher unemployment figures would increase the dole bill by £700 million. Now we learn that it is going to go up again, by another £1.9 billion. In other words, since the Government came to office they have put the unemployment bill up by £2.6 billion. That is an indictment of their record in getting people back to work. In fact, £2.6 billion is the same amount that the Government are cutting from tax credits for people with children. The right hon. Gentleman is cutting support for our children in order to pay the bills for his economic failure.
What does this mean for the average British family? A single earner family with a child and an income of £23,000 will lose £400 a year. The Secretary of State may not care about what is happening to ordinary families, but I assure him that plenty of people are interested in the bills for his economic failure. Households with child care costs will be hit even harder. A family with average child care costs will lose nearly £500 a year, and for some it will be even worse. A single earner on the minimum wage with two children will lose more than £2,000 a year—6.5% of his or her income. Even for low earners, any gains that they make as a result of changes in income tax and child tax credits will be wiped out by the VAT rise. The Secretary of State is squeezing Britain’s families harder than ever to pay for his failure to get the country back to work. Does that not sound all too familiar?