(1 week, 3 days ago)
Commons ChamberOver the last decade or more, we have been expecting more of those members of the Royal Fleet Auxiliary. They play a critical role in our maritime operations and they are highly valued as part of our services community. We see an important future for that service as part of building Britain’s defences for the future, and we are putting forces personnel and RFA personnel at the heart of our plans to ensure that we are more secure at home and strong abroad.
I will not be drawn on details about long-range missiles today—it risks operational security, and the only person who benefits from public debate is President Putin. As the right hon. Member rightly says, 10,000 North Korean troops are on the frontline in Russia. At the weekend, Russia launched its biggest aerial attack into Ukraine since August against infrastructure. I spoke yesterday to the US Defence Secretary about this escalation. I will speak to the Ukrainian Defence Minister about it later today. I want the House to be in no doubt: the Prime Minister has been clear that we must double down and give Ukraine the support it needs for as long as it needs. We will continue to work in close co-ordination with the US in our support for Ukraine.
Our first step was to ensure that veterans who face homelessness have a more advantaged place in social housing provision—that was announced by the Prime Minister in his Labour party conference speech and will be followed up by the Deputy Prime Minister in changes to the arrangements for local authority guidance. On the eve of Remembrance weekend, we also made a pledge of £3.5 million to help homeless veterans.
(2 weeks, 3 days ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
Please remember that when I grant urgent questions, the time each person has is limited. It is two minutes for the main Opposition party and one minute for the other Opposition party.
Fourteen years the Conservative Government had to increase defence spending to 2.5% of GDP, and there was not a plan or a pathway from the last Government, as the shadow Defence Secretary tries to claim. It was a political ploy that was announced four weeks before they called the general election. It was unfunded, and it was a con on the armed forces and on the British people, who gave their answer emphatically by sweeping away Tory MPs in many of the proudest military communities and constituencies across the country.
On the shadow Defence Secretary’s accusations about a total spending freeze, I am putting in place a grip on the out-of-control spending that the last Government left. We are securing value for money, we are cutting waste and we are getting a grip on defence spending in a way his Government did not.
We greatly value the continuity of education allowance and greatly recognise the role it plays in helping avoid disruption to the education of the children of serving personnel. In line with how the allowance operates, we will continue to pay up to 90% of private school fees following the VAT increase in January. By uprating the cap, we will take account of any increase in spending.
On the Chagos islands, of course I know the details because I was heavily involved in the negotiations. This secures Britain’s military base, and it secures a military base for our US allies, which is why they welcomed it so strongly. I have said to the shadow Secretary of State and to the House that when it debates the treaty, this House will have the full information.
Nobody knows better the defence inheritance that 14 years of Conservative government have left us for the past four months than the shadow Defence Secretary: he was a Defence Minister at the heart of the problems, with billion-pound black holes, service morale at record lows, and a crisis in the recruitment and retention of personnel. Never again must a Government leave our armed forces in a worse state than they found them, and this new Government will make this country more secure at home and strong abroad.
We live in an increasingly dangerous and volatile world, with hundreds of thousands of people dying or being injured on our own continent in Ukraine, and wars and conflicts raging in the middle east, Africa and beyond, not to mention the increased nefarious activity in the grey zone. Without a shadow of a doubt, we are dealing with exceptional circumstances and we need to grasp the gravity of the situation. I have a great deal of time and respect for the Secretary of State because I know that he gets it, but do others in government understand the gravity of the situation, because we need clarity? We need a timetable so that not only our allies, but those in our defence community, know where we are heading.
Yes, they do. Everyone agrees that defence spending must increase, and it is increasing under this Government. It increased in the first Budget of this new Government by nearly £3 billion for next year. Alongside that is the cast-iron commitment that we are a Government who will set a path to spending 2.5% of GDP on defence.
(1 month, 1 week ago)
Commons ChamberWith your permission, Mr Speaker, I will make a statement on Ukraine. I apologise for the delay in getting you and Opposition Front Benchers a copy of my statement; the responsibility is entirely mine.
I have just returned from three days of intense defence diplomacy—first, at the NATO Defence Ministers meeting in Brussels, where we welcomed President Zelensky, and then at the G7 Defence Ministers meeting in Naples, where we had important updates from the battlefield, agreed that this is a critical point in the conflict, and stressed the need to step up and speed up support for Ukraine. The G7 joint declaration strongly condemned Putin’s illegal invasion and reinforced our unwavering support for Ukraine. It also rightly stated that
“Russia’s aggression against Ukraine is posing a threat to international security, the purposes and principles of the UN Charter, and the rules-based international order.”
That is what is at stake for us all. If President Putin prevails in Ukraine, he will not stop there. If big nations redraw international boundaries by force, the sovereignty and security of all nations is undermined. That is why the UK’s military, economic, industrial and diplomatic support, alongside that of our allies, is so important.
I have returned to the UK knowing that NATO and the G7 are united for Ukraine, just as the UK is united for Ukraine. Our job now is to turn the talks into action, which is exactly what the Government are doing. Today, the Chancellor and I are announcing that the UK will provide an additional £2.26 billion to Ukraine. This is new money, which will be delivered under the extraordinary revenue acceleration loans to Ukraine scheme. It is part of the $50 billion loan package from G7 countries to support Ukraine’s military, budget and reconstruction needs—loans that will be repaid using the profits generated from immobilised Russian sovereign assets. Profits on frozen Russian money will support Ukraine’s fight against Putin, turning the proceeds of Putin’s corrupt regime against it and putting them in the hands of Ukrainians.
I want to be clear: today’s new money is in addition to the £3 billion a year of military support that this Government have committed to Ukraine each year for as long as it takes. The money is in addition to that in the £3.5 billion defence industrial support treaty that I signed with Defence Minister Umerov in July; that is money that Ukraine will use to procure military equipment from British companies, boosting British jobs and British industry. Today’s new money is also in addition to the extra artillery, air defences, ammunition and missiles that we have announced and delivered in the first four months of this new Government. Ukraine is a first-order priority for me as Defence Secretary, and for this Government. We will continue to step up support, to lead, and to stand with Ukraine for as long as it takes.
It is 973 days since Putin launched his full-scale illegal invasion, and Ukraine’s civilians and military alike have been fighting with great courage. There have been important battlefield developments in recent weeks. When I last updated the House, Ukrainian forces were one month into their remarkable offensive in Kursk. Three months on, they continue to hold Russian territory. Ukraine’s strategic surprise has put Putin under pressure, forcing the diversion of some Russian troops and equipment. Despite the increase in brutal Russian counter-attacks and aerial bombardments, they have so far failed to dislodge the Ukrainian incursion.
It is not just in Kursk that Ukraine is fighting back. Ukrainian forces have launched long-range attacks into Russian territory and on military targets that are directly supporting Putin’s illegal invasion. In September, Ukraine used long-range drones to attack four ammunition storage facilities—strikes that successfully destroyed thousands of tonnes of ammunition—and both the defensive thrust into Kursk and the strategic defensive strikes into Russia have had an impact on the battlefield. Russia’s advance towards Pokrovsk in the east—Putin’s main line of effort —has been slowed.
Russian losses continue to rise. Since the start of the conflict, Russia is likely to have suffered 675,000 casualties. In September, the average casualty rate of Russians on the battlefield in Ukraine each day was 1,271—a record high, two and a half times the rate this time last year. As for equipment, Russia has now lost 3,400 tanks and 8,500 armoured vehicles, and 26 vessels in the Black sea fleet have been destroyed or damaged.
Despite the incredible resilience of the Ukrainians, they remain under great pressure from Russian forces across multiple fronts. Russian troops continue to advance and to attack Ukrainian infrastructure, targeting the important port of Odesa and striking energy infrastructure. As we head into winter, Ukraine’s energy generation capacity has been reduced by up to two thirds of pre-war levels. Russian industry remains on a war footing. Russian artillery is outfiring Ukraine by at least three to one, and Russia is recruiting an additional 400,000 troops this year. Defence will account for 32%—one third—of the total Government budget in Russia next year.
In a concerning new development, it is now highly likely that the transfer of hundreds of combat troops from North Korea to Russia has begun. For North Korean soldiers to support Russia’s war of aggression on European soil is as shocking as it is desperate. North Korea already sends significant munitions and arms to Russia, in direct violation of multiple UN resolutions. The developing military co-operation between Russia and the Democratic People’s Republic of Korea has serious security implications for Europe and the Indo-Pacific. It represents a wider growing alliance of aggression that NATO and the G7 nations must confront.
Despite this dangerous development, Ukraine remains determined to fight on its frontline in the east and in the territory in Kursk, and President Zelensky will continue to seek support for his victory plan. We want the plan to succeed, and we stand ready to work closely with the Ukrainians and allies to help it to do so. As we approach 1,000 days of this war, the conflict is at a critical moment, which is why the UK continues to step up its support for Ukraine. Ukrainians are fighting to regain their sovereign territory and to protect peace, democracy and security for the rest of us in Europe.
I am grateful to the hon. Gentleman for his comments about Corporal Gill. I will pass them on to his widow and make sure that his family are aware of them and of the sentiments of the whole House. The hon. Gentleman is right about the enormous contribution that Corporal Gill made, including to the Interflex training programme, which I was proud to be able to commit to extending throughout 2025. The Chancellor and I visited the programme together on Sunday; we met Colonel Boardman, the commander of Operation Interflex, and the officers and soldiers of 3 Scots, together with instructors from Kosovo, Australia and Sweden, illustrating the way the UK is leading a multinational effort to support Ukrainian soldiers.
The hon. Gentleman is right and I suspect that there is unanimity in the House on concern about the developments in Russia and the growing alliance with North Korea, and that it is united in its determination to take the action required to respond and united in recognising that we must do so alongside NATO and other G7 allies.
The hon. Gentleman asked about the new loan funds available for Ukraine through the proceeds of the interest on frozen Russian assets. We expect those to be available and in Ukraine’s hands from early in the new year, which will put the UK ahead of many other nations participating in the scheme.
On the hon. Gentleman’s final question, we remain totally committed to spending 2.5% on defence. We must do this to meet the threats that this country faces. The Prime Minister confirmed the commitment to set out a clear path to 2.5% in our first week in Government at the NATO summit in Washington. I gently say again to the hon. Gentleman that the last time this country spent 2.5% on defence was in 2010 under a Labour Government, and that that level was never matched in any of the 14 Conservative years since.
I welcome the new Chair of the Select Committee, who I believe now has a Committee to chair. I look forward to an invitation to give evidence and to discuss these issues with the Committee soon.
At the NATO Defence Ministers meeting, there was unanimity among the 32 nations that the important commitments that NATO nations made in Washington, particularly to the $40 billion of extra support for Ukraine, must be delivered. There was a recognition, too, that pledges made must be pledges delivered. One of the Ukrainians’ striking concerns is that just a third of the equipment and support pledged has so far been delivered, so there was a determination to step up not just what we can provide, but how quickly we can provide it. That is something that as a new Government we did from day one.
On Storm Shadow, only Putin benefits from a discussion about this. There is no single weapon that has turned the tide of any war. Whether it is artillery, ammunition, armoured vehicles or missiles, the UK provides support to Ukraine to pursue its UN right to defend its territory and its people.
(1 month, 2 weeks ago)
Commons ChamberThe Foreign Secretary said in his statement that full details will be properly set out when the treaty comes before the House. At that point, the House can scrutinise the deal and approve it or not. Let me make it clear that we inherited a situation in which the long-standing UK-US military base was put at risk from problems to do with sovereignty and migration. We have made a historic deal that secures the UK-US base for the future, which is why my counterpart the US Defence Secretary so strongly welcomed it when we reached it.
They will indeed. This is the way we can reinforce the UK’s security and economy. And yes, we can build, through the SDR, on the work that the hon. Member for South Suffolk (James Cartlidge) did when he was Minister for defence procurement. Like my hon. Friend the Member for South Shields (Mrs Lewell-Buck), I am really angry about the state of defence after the last Government: there are billion-pound black holes in defence plans; service morale is at record lows; and Army numbers are set to fall below 70,000 next year. We will work night and day to make our forces more fit to fight, and to make Britain more secure at home and stronger abroad.
We have an unshakeable commitment to the right of Israel to defend itself and we have demonstrated in the past a willingness to stand with Israel, particularly when it has been under direct under attack from Iran.
We now come to points of order before the urgent questions. I will deal with them in a slightly different way from normal. I call the leader of the Scottish National party.
(2 months, 2 weeks ago)
Commons ChamberI have said that Ukraine is my first-order priority, and I was in Odessa on my second day in the job. I have now had the privilege of meeting President Zelensky four times while in post, and I have met his Defence Minister six times. Like the previous Government, we consistently try to respond to the needs that Ukraine says it has for systems and ammunition. At the moment, above all, it needs new supplies of ammunition and stronger air defence systems capable of taking down Russian missiles and drones at different distances. While the US made a commitment at Ramstein last week to an extra $250 million in air defence systems, we made a commitment of an extra £160 million through a short-range modern air defence system—650 LMMs, with production under way—the first of which will be delivered to Ukraine before the end of the year. We are stepping up the support that we pledged for Ukraine and speeding up the support that we deliver to Ukraine.
(6 months, 1 week ago)
Commons ChamberThe Government’s increase in military aid to Ukraine for this year and the years ahead has Labour’s fullest support. Weekend newspapers reported that D-day celebrations are at risk from RAF cuts, and the latest MOD figures confirm that nearly 50,000 full-time forces personnel have been cut since 2010. The Defence Secretary’s predecessor, the right hon. Member for Wyre and Preston North (Mr Wallace), admitted that this Government have “hollowed out and underfunded” the forces. He is right, isn’t he?
(8 months, 1 week ago)
Commons ChamberAs you did, Mr Speaker, I pay tribute to the Armed Forces Minister at his last Defence questions. Since the last election, we have had five Chancellors, four Foreign Secretaries, three Prime Ministers and two Defence Secretaries, but only one Armed Forces Minister. He has been a rare constant in the turmoil of Government, totally committed to defence. We thank him for that and wish him well.
On the Indo-Pacific, we welcome last week’s updated defence agreement with Australia, further progress on AUKUS, and today’s 10-year plan for Barrow to support AUKUS. This is our most important strategic alliance beyond NATO, so why has the Defence Secretary given the leadership of key parts of AUKUS to the most junior Minister in his Department?
We condemn the deadly terrorist attack in Moscow on Friday, and our thoughts are with all those affected, but the attack must not become a Kremlin cover for Putin’s illegal war in Ukraine. In recent days, we have seen multiple Russian strikes on Ukrainian cities, yet the last UK air defence support was announced last year. When is the next one?
(9 months, 1 week ago)
Commons ChamberIn the last year of the last Labour Government, we were spending 2.5% of GDP on defence, a level that has not been matched in any of the subsequent 14 Tory years.
Like the Defence Secretary, the Leader of the Opposition and I were in Munich at the weekend, and the urgency of the need for more help for Ukraine ran through every discussion. Everyone was also profoundly moved by the words of Yulia Navalnaya, speaking even after the news of her husband’s death at Putin’s hands. This is the brutality that the Ukrainians are fighting, and this is why UK support must not falter. We strongly back last month’s UK-Ukraine security agreement, which the Defence Secretary has described as “a 100-year alliance”. Will the Government take the necessary next step and provide an implementation plan for this year and future years, to ensure that Ukraine receives the help that it needs now and for tomorrow?
The agonies of the Palestinian people are extreme. We all want the fighting to stop now, for hostages to be returned now, for aid to be ramped up now, and a ceasefire that lasts permanently. What is the Defence Secretary doing to help his Israeli counterpart to accept that their threatened offensive against Rafah just cannot happen?
(10 months, 3 weeks ago)
Commons ChamberI welcome what the Defence Secretary has to say. These attacks on Red sea shipping must stop. They destabilise regional security, disrupt international trade and put civilian and military lives in danger. We back the UK action with allies in the new maritime protection force, and the joint statement condemning the Houthi attacks that the Secretary of State just mentioned. He announced today but has not mentioned to the House that HMS Richmond is sailing to the Gulf. In the light of these escalating tensions, what other Royal Navy ships has he put on stand-by for the region?
In just five days last week, Russia fired 500 drones and missiles at Ukraine. Putin is stepping up his attacks, so we must step up UK support, but current military aid funding runs out in a matter of weeks. The former Defence Secretary said—although not today—that without new money it is
“very hard to continue the leadership the UK has been taking on Ukraine”.
I asked the current Defence Secretary about the 2024 Ukraine funding in the House in November. The former Defence Secretary wrote about it eight months ago. Seven weeks from when I asked, I ask again: when will new military aid funding for Ukraine be announced, and will it be multi-year?
(1 year ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
Early on Saturday morning, sirens sounded across Kyiv for six hours. Families took to shelters and fear spread across the city. That day, 75 drones were launched on Kyiv—the biggest strike on Ukraine since Putin’s brutal illegal invasion began, as the Minister said. With attention on the middle east, this is a wake-up call about Russia. Putin can still unleash fresh horrors on Ukraine, still shows contempt for international law, and still wants to redraw sovereign boundaries by force. Six hundred and forty-two days on, Ukrainians are living with fear every day, fighting every day, and dying every day. The defence of the UK starts in Ukraine, because if Putin prevails, he will not stop with Ukraine. I pay tribute to the UK troops who are training Ukrainian forces, flying out military aid and reinforcing regional security through NATO.
Last month, the Defence Secretary said:
“Let’s not forget about Ukraine.”
So why did the autumn statement do just that? There was no 2024 military funding or action plan for Ukraine. At the very time when Ukraine needs confidence that it has strong, continuing support from allies, the Prime Minister is stepping back. UK leadership on Ukraine is flagging: this year’s £2.3 billion of UK military funding runs out in March, while this month Germany announced €8 billion of military aid for next year. When will the Defence Secretary himself make a statement on Ukraine? When will Ministers announce the next delivery of UK weapons? When will the Government pledge funding for fresh military aid and publish a 2024 action plan for the military, economic and diplomatic support that Ukraine needs? When will the Prime Minister demonstrate by his decisions and actions that Britain will stand with Ukraine for as long as it takes to win?
(1 year ago)
Commons ChamberAfter nearly three months, it is very good to finally welcome the Defence Secretary to the Dispatch Box for the first time. He reflects the deep concern about the humanitarian catastrophe in Gaza and the risks of wider escalation. Labour totally condemns Hamas terrorism. We back Israel’s right to defend itself, but require it to meet its duties under international law and lift the siege conditions, and we want to see the breaks in fighting extended to get much more aid in and the hostages out. We back the military deployments to the region to support wider security, but with attacks against US personnel rising, what action is the Defence Secretary taking to increase protection for UK personnel in the middle east?
The Defence Secretary said recently that, despite middle east tensions, we must not forget about Ukraine. I welcome that statement, but the UK’s leadership on support for Ukraine is flagging, so will Wednesday’s autumn statement, as a minimum, confirm the commitment to match this year’s £2.3 billion in military aid funding for next year?
(1 year, 2 months ago)
Commons ChamberWe know that the Defence Secretary is with his close family today, and we in the Opposition extend our deepest condolences.
I also offer the Secretary of State our warmest congratulations. Over the years and in different roles, I have shadowed him and he has shadowed me, and we both know that the first duty of any Government is to keep our country safe. I will always look to work with him on that basis in his new job.
On personnel, levels of satisfaction with service life have plunged a third over the past 13 years. What is the plan to lift those record low levels of military morale?
The right hon. Gentleman paints an overly gloomy picture of life in the armed forces for most people. It is a rewarding career and they take with them the skills that they need into civilian life and prosper. However, we are aware of our need to compete in the workplace in the years ahead and, to that end, we have commissioned Rick Haythornthwaite’s review, which we broadly agree with and will respond to very soon.
As Ministers know, UK unity on Ukraine stays strong and the Government will continue to have Labour’s fullest support on military aid. Ukrainians are now urgently asking for more to help their current counter-offensive to succeed, and since January, the Prime Minister has repeatedly pledged to accelerate Ukraine’s support. When will this happen?
(1 year, 5 months ago)
Commons ChamberIn January, the Defence Secretary admitted that his Government have “hollowed out and underfunded” our armed forces and, in the past week, a string of senior military figures have agreed. NATO’s second-in-command said that the British Army is “too small”, a former Chief of the Defence Staff said
“The Army is now too weak”,
and another ex-CDS said:
“The hollowing out of warfighting resilience within the Armed Forces has been the single most obvious shortfall…since 2010”.
Will the Defence Secretary halt this hollowing out in his new Defence Command Paper? Will it be published this month, as he has promised?
The Prime Minister told last week’s Ukraine recovery conference that
“we will maintain our support for Ukraine’s defence and for the counter offensive”.
With the developments in recent days, surely now is the time to accelerate, not just maintain, our military support for Ukraine?
(1 year, 6 months ago)
Commons ChamberThe Defence Secretary is right, of course, that for strong maritime security, we need our Navy ships at sea, not in dock for repairs. For the last two years, he has been telling us that we are
“on track to deliver more days at sea for ships.”
Yet in last year’s data, eight of the Navy’s active warships never went to sea at all, and the new Prince of Wales carrier has, since it entered service, spent just 267 days at sea and 411 days in dock for repeated repairs. Why is he still failing to get more of our ships at sea more of the time to keep Britain safe?
(1 year, 10 months ago)
Commons ChamberThis week, like the Secretary of State, I will be meeting the Australian Defence Minister and discussing AUKUS with him. I want him to know that, while there may be a change of UK Government at the next election, there will be no change in Britain’s commitment to AUKUS. If done well, this pact could deepen our closest alliances, strengthen security in the Indo-Pacific and bring game-changing investment to Britain. What priority has the Defence Secretary given to building the first subs here, and when will the build plan be announced?
This month, the Government made important but, again, ad hoc announcements of more military help for Ukraine. We are still waiting for the 2023 action plan of support for Ukraine first promised by the Defence Secretary last August. Will he publish that ahead of the first anniversary of Russia’s invasion next month?
(1 year, 11 months ago)
Commons ChamberWe welcome the Government’s commitment to job creation; the problem is that they are creating jobs abroad, including in Spain. The Defence Secretary has just picked a Spanish firm to build the Royal Navy’s three new fleet support ships. At least 40% of that work will go abroad and the best that the Defence Secretary could tell the Scottish Affairs Committee the other day was that the contractor will
“fully assemble the final ship in a UK yard.”
As a result of the Defence Secretary’s decision, how many jobs will be created in Spain and not in the UK?
Order. Work with me, Secretary of State; I want to work with you. You have given very long answers during questions, and we are now into topicals. We have to be short and sweet. Lots of Members on both sides wanted to get in earlier but failed to because of the long answer. Please, let us work together. I call John Healey—briefly, please.
At today’s Cobra meeting, will the Defence Secretary tell Ministers in other Departments that too often they use our armed forces to bail out their Departments’ failings, especially when he is making further deep cuts to the Army? In addition to those deployed on overseas operations, whom he has mentioned, how many of our forces will be deployed or on standby over Christmas in response to requests for military assistance to which he has already agreed?
(2 years ago)
Commons ChamberI thank the Minister for the advance copy of his statement—he always treats this House with great courtesy—but I have to say that I was disappointed, Mr Speaker, as you will be, that nearly three hours before I received a copy of the statement I was reading about his decision on The Times online.
MINUSMA is the UN’s deadliest peacekeeping mission, with 281 fatalities to date, so I want to start by paying tribute to all those British troops who have been deployed with the UN in Mali since 2020 and all the RAF air and ground crew who have been deployed in Mali since 2013.
The UN Security Council only renewed the Mali mission’s mandate, which Britain strongly supported, in June. What now for the UN’s MINUSMA force without the UK’s long-range specialised reconnaissance? What now for the UK’s contribution to stabilising the Sahel, which experts say has become the new epicentre of terrorism? What now for the neighbouring states of Mali, which look to the UK for support in the face of increasing activity from Islamic extremist groups? And what now for the west’s capacity to balance the Russian Wagner Group mercenaries in the region?
Will the Chinook deployment continue to support the UN mission? The Times reported that this has already been withdrawn, although the Minister has not mentioned it this afternoon. And when exactly will the current Royal Scots Light Dragoons on the ground in Mali be withdrawn?
This statement is long overdue. France announced the withdrawal of troops from Mali back in February, and when I asked the Defence Secretary about this days later he said the UK was
“now reviewing our next steps.”—[Official Report, 21 February 2022; Vol. 709, c. 17.]
I got the same answer when I asked again nearly four months later. Now, fully nine months after France, and eight months after Sweden, why has it has taken Britain so long to make the same decision? We need strategic planning and foresight from Ministers for this region, not a tactical silence while they work out what on earth to do.
President Macron marked the end of the French Operation Barkhane last week by pledging a new strategy within half a year for working with African countries. Is the UK working with France on this new strategy? Will the Government produce a similar UK strategy?
In the Government’s 2020 integrated review there was just one passing reference to the Sahel and two short factual statements about Mali. Will the current IR update make good the Sahel-shaped gap in UK strategic security thinking?
Finally, ahead of the autumn statement, today’s decision on reducing our commitment to UK United Nations peacekeeping is a reminder of the importance of clarity over UK defence spending. The Defence Secretary agreed the current spending settlement, giving the Ministry of Defence back in 2020 a £1.4 billion real cut in day-to-day spending. He now says, as he told the Select Committee on Defence, that
“the inflationary pressure on my budget for the next two years is about £8 billion”.
How much does Defence actually need from the Chancellor on Thursday to plug the Defence Secretary’s budget black hole?
Order. Just before the Minister comes in, I have seen what has been given to The Times, and I am disappointed. I have the greatest respect for the Minister, but it is pretty appalling that somebody decided to hand to The Times, for it to put online, exactly what he has just given to the House. I hope that he will look into that and that whoever in the Department passed it to The Times will be reprimanded and reminded that Members of this House come first, not the media.
(2 years ago)
Commons ChamberIt was an honour to join you, Mr Speaker, the Canadian Speaker, the Defence Secretary and other Members of the House earlier today for the opening of the constituency garden of remembrance. At last week’s Defence Committee, the Secretary of State was asked when the MOD would sign a contract to make the new next-generation light anti-tank weapons that are needed both for Ukraine and to restock the British Army. He said:
“We have signed the first contract for next year.”
If the Defence Secretary was correct, Saab would have notified the market, but it has not. Would the Defence Secretary like to correct the record, and will he confirm when the MOD will get its act together and get that contract in place for new UK production, as this is day 257 of Putin’s war on Ukraine?
I welcome the Defence Secretary’s news that the vanity project of the previous Prime Minister, the right hon. Member for Uxbridge and South Ruislip (Boris Johnson)—the flagship—will be scrapped, and the spending switched to purposes that will help defend the country. Ahead of the Chancellor’s autumn statement, the Defence Secretary told the Select Committee last week
“I need money to protect me from inflation”,
yet in the current spending settlement, Defence is the only Department with a real-terms cut in its revenue budget. Why did he ever agree to that?
(2 years, 4 months ago)
Commons ChamberMay I congratulate the Defence Secretary and his team on ensuring that there has been continuity in defence while the rest of the Conservative Government have collapsed in chaos? Let me also say, lest this prove to be their last session of oral questions in their current jobs, that whatever our other disagreements, the Secretary of State’s cross-party working on Ukraine has helped to ensure that the UK has strong, unified support for the Ukrainians.
The right hon. Gentleman has been Defence Secretary since the Prime Minister, nearly two years ago, boosted defence spending and boasted that that would create 10,000 jobs every year. Only 800 new defence jobs have been created since then. Why the failure?
When the Minister of State, the hon. Member for Wells (James Heappey), answered my urgent question on Thursday about new public allegations about British special forces in Afghanistan, he said that,
“the Secretary of State is clear that he rules nothing out”.
He also said:
“I am certain that the House will hear from him in the near future.”—[Official Report, 14 July 2022; Vol. 718, c. 494.]
With the summer recess starting on Thursday, when will the Secretary of State make a statement to the House on this?
(2 years, 5 months ago)
Commons ChamberToday marks day 117 since Russia began its brutal and illegal invasion of Ukraine. It is now a grim, grinding war of attrition. NATO’s Secretary-General warned last week that the alliance
“must prepare for the fact that it could take years.”
Everything that can be done must be done to help to maintain the Ukrainian military’s morale, weaponry and personnel. The Government will continue to have Labour’s full support in the military assistance they provide to Ukraine.
In April, when responding to the Defence Secretary’s statement in this House, I urged the Government to move to supply
“the new NATO weapons that Ukraine will need for Putin’s next offensive”.—[Official Report, 25 April 2022; Vol. 712, c. 463.]
In these last two months, what NATO-standard stock has been supplied from the UK to Ukraine, and how many new contracts for missiles or ammunition production have the MOD now managed to sign and start?
On Friday, as the Minister said, the Prime Minister offered to train 10,000 new Ukrainian soldiers every three months. This is exactly what is needed. Did President Zelensky accept Britain’s offer? Will these Ukrainian recruits be trained in Britain? Which other NATO nations will be involved in such training?
As we mark the start of Armed Forces Week, the Labour leader and I had the privilege of visiting NATO’s maritime command and our UK Permanent Joint Headquarters in Northwood this morning. We wanted to thank our personnel for the service they give to our national and NATO commitments. However, there are serious growing concerns about the UK meeting its NATO commitments, with the failure to reboot defence plans in response to Ukraine, delays to a fully modern warfighting division until 2030, continued uncertainty over Ajax and, of course, further deep cuts to Army numbers.
The new head of the Army said in an internal message to troops last week that
“there is now a burning imperative to forge an Army capable of fighting alongside our allies and defeating Russia in battle”,
so why are Ministers pushing ahead with plans to cut another 10,000 soldiers? When will they halt these cuts, and when will they start to rebuild the strength of the British Army to meet the threats that our country and our NATO allies face?
(2 years, 5 months ago)
Commons ChamberNATO meets in two weeks to agree its masterplan for the next 10 years, yet there are growing concerns about the UK meeting even its core NATO commitments. Is it true that the Defence Secretary warned the Chancellor that Britain risks missing its 2% spending commitment? What is the Defence Secretary doing about Ajax, given that the Public Accounts Committee’s new report states that the MoD
“is failing to deliver the…capability that the Army needs to…meet its NATO commitments”?
Why has the Defence Secretary failed to set out a vision to ensure that Britain continues to be NATO’s leading European nation?
On the eve of the 40th anniversary, we remember the sacrifice in liberating the Falklands and we reaffirm the significance of the islands to our future security.
During the Defence Secretary’s visit to Kyiv in recent days, two Brits fighting with the Ukrainians have faced a Russian show trial and another has been reported killed. How many former British forces personnel are fighting in Ukraine?
(2 years, 8 months ago)
Commons ChamberThe UK’s anti-tank and anti-air weapons are proving vital to the Ukrainians in fighting the Russian invasion. The Prime Minister pledged at NATO last week that we will supply a further 6,000 missiles. Both NLAW and Starstreak are made in Britain by British workers, as the Minister for Defence Procurement said in response to the hon. Member for North Devon (Selaine Saxby) on Question 17, but has production started to replace the British stockpiles of these missiles?
(2 years, 8 months ago)
Commons ChamberI thank the Defence Secretary and his team for the way they have kept Members in all parts of the House updated and informed, and I thank him for his statement this afternoon. President Zelensky spoke for his country when he told us yesterday:
“We will not give up, and we will not lose.”—[Official Report, 8 March 2022; Vol. 710, c. 304.]
His address, like his leadership, was deeply moving and deeply inspiring. Ukrainians are showing massive bravery—military and civilians alike—and we must do all we can to support their resistance. The Government have Labour’s full backing for providing military and intelligence assistance to Ukraine to defend itself.
I welcome the Defence Secretary’s statement and the detail of the further weapons and equipment that Britain has been able to provide Ukraine to defend itself. I also welcome the role we are playing in co-ordinating help from other countries for Ukraine. Can I urge him to conclude the examination he is now giving to the provision of Starstreak missiles as quickly as possible? These are exactly the sort of ground-to-air missiles needed to defend against Russian air attacks. Can I ask him more broadly whether these supplies to Ukraine are coming solely from our UK stockpiles, or is the MOD also purchasing from other countries to respond to Ukrainian requests? Have other non-NATO, non-European countries with weaponry or well-trained air forces yet been involved?
It is clear that President Putin miscalculated the resolve of the Ukrainian military and the strength of his own Russian forces. He planned for a short campaign without the provision of logistics for protracted fighting and occupation. What is the MOD’s assessment of how far the Russians have now rectified this? I think the Secretary of State said 65%, but can he confirm what proportion of Russian forces that were on Ukraine’s borders and off her coast have now been deployed into Ukraine?
This is only still week two. Russia has such crushing firepower, and Putin has such utter ruthlessness, that we must expect more than one of his military objectives to be taken over the next few weeks. We must expect greater brutality, with still further civilian casualties. Our thoughts and prayers are with the residents of Kyiv and those other great Ukrainian cities as they face encirclement and bombardment from Russian forces.
Whatever the short-term gains Putin secures, we must make sure that he fails in the longer run through Ukrainian resistance, tougher sanctions, more humanitarian help, wider international isolation, justice for the war crimes being committed and, above all, lasting western unity. We must be ready to deal with the consequences of this invasion for many years to come. It is clear, however, that Putin has also miscalculated the international resolve to isolate Russia and the strength of western and NATO unity. Labour’s commitment to NATO is unshakeable, and the Government again have our full support for reinforcing NATO nations on the alliance’s eastern border with Russia. The Labour leader and I fly out tonight to Tallinn to reassure Estonia of the united UK determination to defend its security and to thank our British forces deployed there from the Royal Tank Regiment and the Royal Welsh battlegroup.
It was Labour’s post-war Foreign Secretary, Ernest Bevin, who was the principal architect of NATO and in particular of its article 5 commitment to collective defence. Today is the anniversary of Bevin’s birth in 1881, so today let President Putin be in no doubt that our commitment to article 5 is absolute. Let him not mistake NATO’s restraint for any lack of resolve. NATO’s response force has been activated, as the Defence Secretary has said, in response to this aggression. We welcome the detail of the UK’s contribution to that, but what role could the UK-led joint expeditionary force play? Is it not time for NATO to issue an initiating directive to the Supreme Allied Commander to plan future options as part of overhauling NATO, necessarily, for the decade ahead? Could the Defence Secretary also confirm what I think he said, which was that the 1,000 UK troops put on stand-by before the invasion are still in Britain and still on stand-by, and that we have received no requests for the humanitarian help that they were designed to respond to?
It is not the job of British forces to protect the failing Home Secretary or Border Force, especially at this critical time of conflict, but yesterday the Defence Secretary said that help for Ukrainians fleeing the war had “not been quick enough”. He also said that he was offering MOD assistance to the Home Office. Has this offer been accepted? Can he tell us what role military personnel will play, where, and for how long?
As we confront aggression abroad, we need to strengthen our defences at home. A national resilience strategy was promised a year ago. When will this be published? The integrated review, published a year ago, made the Prime Minister’s first focus the Indo-Pacific. It neglected the need to rebuild relations with essential European allies and the European Union, and it planned to cut the British Army still further. Will the Government now rethink such fundamental flaws in their integrated review?
Finally, if I may, Mr Speaker, we expect a big budget boost for Defence in the Chancellor’s spring statement in two weeks’ time. With Russia’s full-scale invasion of Ukraine, the Government must respond to new threats to UK and European security, just as Labour in government did after the twin towers attacks on 9/11. If the Government act, they will again have Labour’s full support.
I am going to make mention of this important issue: Front Benchers have to be in line with the rules, and I have to enforce the rules. The rule says five minutes, but that was seven. If you want me to grant urgent questions and if you want me to support statements, you have to work with me to ensure that we do not take the time from other agendas. I do keep clock of the time, and I do not want to get into an argument about it—the Labour Front-Bench spokesman took a lot longer. This is an important matter and I want to keep it on the agenda, but you need to work with me. Or change the rules and make my life easier!
(2 years, 9 months ago)
Commons ChamberThank you, Mr Speaker, and may I extend a warm Labour welcome to the Speaker of the House of Representatives and her team this afternoon?
The Government have Labour’s full support in assisting Ukraine in confronting Russian aggression and pursuing diplomacy even at this eleventh hour, and we also fully support moves to reinforce the security of NATO allies, as the Labour leader and I told the Secretary-General at NATO HQ earlier this month. However, although the doubling of UK troops in Estonia is welcome it looks like an overlap in rotation, not a reinforcement; for how long will this double deployment last, and beyond the steps already announced what more is the Secretary of State willing to do to reinforce allies on NATO’s eastern flank?
(3 years, 2 months ago)
Commons ChamberI want to ask the Defence Secretary about the Ajax armoured vehicle, the biggest defence procurement failure since the Nimrod. What did the Defence Secretary know about the Ajax flaws when he published the integrated review in his Defence White Paper in March, scrapping Warrior, scaling back Challenger and fully backing Ajax?
(3 years, 6 months ago)
Commons ChamberThe Prime Minister said back in November that the current four-year funding for defence would create “10,000 jobs every year”. Six months on, how many new defence jobs have been created?
(3 years, 10 months ago)
Commons ChamberThe Secretary of State mentions nuclear proliferation in relation to Iran, but I am disappointed that he makes no mention of New START—strategic arms reduction treaty—which President Biden rescued last week, particularly as Britain is a beneficiary of the stability that it brings to Europe. He made no mention of New START when it collapsed with President Trump last year. He was also silent when the US pulled out of the 34-nation open skies treaty, so why has Britain become a bystander while the international rules-based order has been breaking down? While it remains essential to maintain our UK nuclear deterrent, will he also use the integrated review to reboot Britain’s commitment to help forge the next generation of necessary arms controls and security agreements?
May I just remind Front Benchers that topicals are meant to be short and punchy so that we get through the list?
(4 years ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
Before I call the right hon. Member for Wentworth and Dearne (John Healey), I want to put on record our thanks to our armed forces for what they are doing during this pandemic. Personally, I appreciate it.
(Urgent Question): To ask the Secretary of State for Defence if he will make a statement on the deployment of the armed forces to assist civilian authorities in dealing with the continuing covid pandemic.
(4 years ago)
Commons ChamberCan I just say that topicals are meant to be short and punchy? We have got to get into that habit.
As we have seen this afternoon, there is growing cross-party concern over the Secretary of State’s overseas operations Bill. Will he now accept, after 10 Committee sittings, that it is clear that the Bill simply does not do what it says on the tin—to protect British troops overseas from vexatious litigation and repeat investigations? Will he also accept that, as we have seen this afternoon, the Minister in charge is in denial about the Bill’s flaws and dangers? Will the Secretary of State himself therefore join me tomorrow for Report stage so that we can work together on the changes needed to make this legislation fit for purpose?
Order. I say to the Front Benchers once again, if you are going to ask questions in topicals, they have got to be short and punchy. That is the idea of topicals. I call the Secretary of State.
(4 years, 6 months ago)
Commons ChamberThank you, Mr Speaker, and I thank the Secretary of State for his welcome, too. It is a privilege to take on this role, which has always been so important to the Labour party. We will do right by our armed forces and veterans and we will promote their role as a force for good at home and abroad. Like the Secretary of State, I pay tribute to our military’s essential role in helping the country to respond to the covid crisis. They are keeping us safe, and it is right that we do everything we can to keep them safe.
The US Defence Department has increased its testing capacity to 30,000 military personnel a week. It has set out a strategic testing plan and has now tested everyone deemed a priority for national security, including strategic deterrence, nuclear deterrence, anti-terror forces and healthcare as well as, of course, its entire covid support force. Has the Secretary of State done the same here in the UK?
I am grateful to the right hon. Member. May I place on record a tribute to his predecessor, the hon. Member for Llanelli (Nia Griffith), who did a great job as shadow Defence Secretary, sometimes in difficult circumstances? We have done it slightly differently from the United States with testing our personnel. We have no problems whatsoever testing whoever we want, when we want. The best example I can give is that, before embarkation, we tested all 799 of the crew of the Queen Elizabeth carrier. We will test them again throughout their period of sailing and when they return.
We have a strategy around protecting the national security-vital parts of our forces, which involves testing and quarantine. That is also being carried out in areas that I will not particularly comment on; nevertheless, the right hon. Member mentioned what the Americans view as strategically important. We do not have a mass programme; we have testing that is available—we do not have any problems acquiring it—and, as we bring forces up to either readiness or deployment, there is an opportunity if required, if quarantine has not done the job, to test them as well.
The Secretary of State talked about testing who we want when we want, but he gave no definition of that. The last published figures show that we had tested just 1% of our entire military personnel. This is about keeping our armed forces safe and safeguarding our national security. There is no fix for coronavirus without mass testing, and we really expect the Ministry of Defence to lead the way, not lag behind, so will he get a grip of this? Will he produce a plan for testing our military, set a target for the number of tests and publish the results, just as our allies in the US have done?
(7 years, 1 month ago)
Commons ChamberOn a point of order, Mr Deputy Speaker. After the Prime Minister made an announcement at Prime Minister’s questions, ahead of our Opposition day debate today, that the Government will drop their plans for a crude cap and cuts to supported housing, have you or Mr Speaker had any indication that Ministers, when they make the full announcement next week, which the Minister has just mentioned, will come and make the announcement to the House with an oral statement? In the light of the unanimous support for our motion tonight and the widespread concern about the Government’s plans over the past two years on both sides of the House and across the sector, it is clearly really important that Members can question Ministers on the announcement in full that they make.
The one thing we can be sure of is that I have been given no notice that anybody is coming forward and I do not think Mr Speaker will have been given notice at this stage. What I would say is that the right hon. Gentleman has certainly put on record his concerns. His views and opinions have been recorded. As he would expect, it is not for the Chair to look at the decision on the vote. That is a matter for the House and certainly not the Chair.
(8 years, 11 months ago)
Commons ChamberIn which case, it should be a very short intervention. I do not think we need to hear any more, because I want to get you on the list.
The statistic that matters most is the number of homes that were actually built. The hon. Gentleman is right to say that 2009 saw the lowest level of house building under 13 years of Labour, but that figure was still higher than that in the best year in the past five years of a Tory Government.
There have been five years of failure on every front, by every measure and in every area. Two weeks ago, the Prime Minister gave a speech in which housing was a central theme. He said—I am not making this up—that
“this is a government that delivers”.
Well, it does not deliver on housing. The Government spent the last five years blaming Labour, but they have their own track record now—and it is one of five years of failure on housing under Conservative Ministers.
The Chancellor gave his autumn statement and spending review three weeks ago and, again, housing was a central theme.
Search me, guv. Ask Zoopla. I have to tell the hon. Gentleman—[Interruption.] I’m not sure I’ll bother, Mr Deputy Speaker. He is not listening anyway.
Order. That is a very good point. I am struggling to hear the shadow Minister express his views on housing. Can we please be a bit more tolerant and have less shouting?
May I also say that a lot of Members want to speak? If we are going to have interventions, let us make them short.
My hon. Friend makes a really important point that I hope will be a point of debate this afternoon. A serious question that must be asked in respect of the plans before us is whether it is the right use of public money to subsidise the demand for new housing, at a time when the housing market in many parts of the country is already out of control.
(11 years, 2 months ago)
Commons ChamberOrder. I hope the right hon. Member for Wentworth and Dearne (John Healey) will not stray too far down that road, and will return to the subject of the clause and amendments. He has performed very skilfully so far.
Indeed so, Sir Edward.
As a former member of the Union of Shop, Distributive and Allied Workers, the hon. Gentleman will be aware that the steps, linked to the clause, that any union needs to take before contemplating industrial action are already highly complex. They are legally specified, and they set a number of very high hurdles for any group of trade union members who wish to consider industrial action. As for his general point, it is often the determination of union members to take industrial action if necessary, and as a last resort, that causes employers to see sense, negotiate properly and, in many cases, solve the problems at hand.
Let me sum up the position. The number of days lost to strike action is at a near all-time low. Industrial action is always a last resort. The series of legislative steps that any group of trade union members must take before engaging in lawful industrial action are already highly complex, lengthy and tightly specified in law, but clause 36 will make that specification much tighter, and will make it much more difficult for unions to take such action. As my hon. Friend the Member for North Ayrshire and Arran (Katy Clark) pointed out, there is no legal right to strike in this country, and any industrial action lays a trade union open to being sued for inducing and encouraging members to breach their employment contracts. It is only the immunity from being sued, which comes from following all the steps specified in existing legislation, that will be made more difficult by the provisions in clause 36.
Too often in recent years, employers—not just large employers such as Balfour Beatty, Serco and London Midland—instead of dealing with the grievance at hand, and instead of consulting, negotiating and discussing the problems that they face with their own employees and dealing with the dispute, have looked for legal ground to try to prevent any industrial action through the law courts. The duty in clause 36 to provide the membership audits and certificates, and the potential investigations on the back of any complaints under the auspices of the certification officer, are likely to make it much easier for employers to find legal grounds and to take legal action to prevent union members from taking proper, legitimate industrial action. Clause 36 will create a mountain of data and paperwork which will be at the fingertips of employers well in advance of any particular risk of industrial action or dispute.
(12 years, 6 months ago)
Commons ChamberOrder. I am not failing as an opposition, so I do not think that is parliamentary.
I have not seen the hon. Gentleman’s amendments to make the measure not permissive, but a requirement of the Government—Mr Speaker must not have selected it. Clearly, anything in statute would be a significant step forward, as the shadow Minister, my hon. Friend the Member for Nottingham East, has argued. Those on both sides of the House who have an interest could use a permissive measure in future.
With this it will be convenient to discuss the following:
New clause 6—Determination of central and local shares—
‘(1) In determining the central share and the local share for any relevant authority, the Secretary of State must have regard to—
(a) the level of need in that authority, and
(b) the likely capacity of the authority to benefit from business rate growth.
(2) Any assessment of the level of need shall include—
(a) the ranking of the local authority in the Index of Multiple Deprivation,
(b) the level of unemployment within the authority’s area,
(c) the proportion of adults within the authority’s area who have a limiting long-term illness,
(d) the number of adults within the area who are in receipt of social care,
(e) the number of looked-after children within the authority, and
(f) the level of child poverty within the authority’s area.
(3) The Secretary of State must lay his assessment before the House at the same time as the Local Government Finance Report.’.
New clause 11—National business rate policy changes: consultation—
‘The Secretary of State may not make any changes to national business rate policy which impact on local business rate yields without first consulting with all interested parties.’.
Government amendments 15 to 17.
Amendment 62, page 12, line 13, schedule 1, leave out ‘each year’ and insert—
‘each financial year until the end of the financial year beginning 1 April 2014’.
Government amendments 18 and 19.
Amendment 63, page 23, line 40, at end insert—
‘(ca) by reference to the volatility caused by rating appeals following a revaluation;’.
Government amendments 20 to 41.
Government new clause 8—Payments to and from authorities.
I rise to speak to new clauses 1 and 11, and amendments 62 and 63.
My purpose with new clause 1 is to encourage the Minister to confirm, on behalf of the Government, that the necessary powers exist in legislation to make tax increment financing work in future, and also to confirm Ministers’ intent and commitment to using those powers. The case for TIFs—tax increment financing schemes—is unarguable. I myself have been arguing it for a number of years, first in the Treasury and then in the Department for Communities and Local Government. There are local government regulations in Scotland to allow six TIF pilots to go ahead. The use of TIFs is widespread in Canada and the US, particularly in areas where regeneration is required; indeed, only one state in the US—Arizona—does not have TIF legislation. TIFs build on the commitment that Labour made in government, in the Budget 2010, a commitment that was backed by a capital down payment of £120 million.
However, if the TIFs system is to work—that is, if local authorities are to borrow money for up-front infrastructure investment against the anticipated increase in business rate income as a result of the new infrastructure —there must above all be certainty for those long-term investments to be made. There needs to be certainty for a clear business plan and then an investment plan to be put in place; otherwise TIFs will not get off the ground and will not work. That certainty is required over a 20 to 30-year time scale, which is why it is needed in legislation. As the Centre for Cities said in response to the Government’s consultation:
“When the Government introduces Tax Increment Financing…it should be based on ‘Option 2’—a ringfenced TIF which is best suited for local investment finance within the proposed business rate retention system.”
That point was echoed by the British Property Federation, which said:
“Failing to ring-fence the income stream for that length of time”—
its submission referred to a 25 to 30-year period—
“would generally render the upfront investment unbankable, because the risks associated with it become too difficult to model, understand and price. TIF will only work with the sort of total ring-fencing proposed under Option 2”.
The Government made the commitment to ring-fencing, stating in the White Paper of October 2010:
“We will introduce new borrowing powers to enable authorities to carry out Tax Increment Financing”.
In response to the consultation, the Government also made a commitment to
“allow a limited number of Tax Increment Financing Projects to be exempted from any levy and reset for 25 years.”
That is the crucial commitment that I want to test against the content of the Bill before us. I expressed my concern about the freedom of the ring-fencing from any effects of reset to the Secretary of State on Second Reading on 10 January. He had no answer: either he did not know, or he did not want to say.
Let me therefore point the Minister to the source of my concern, which relates to paragraph 37(1)(d) of schedule 1 on page 32. This deals with the regulation-making powers of the Secretary of State, referring to regulations that can
“provide for that amount or that proportion to be disregarded for the purposes of calculations under any of the following provisions”—
in other words, regulation-making powers that can lead to the disregard of a proportion of business rates in specified areas, namely TIF areas, for particular payments that would otherwise be due. The provision goes on to identify payments to the central share, payments by billing to precepting local authorities, levy payments, safety net payments, payments on account and payments that follow from changes either to the local government finance report or to an amending report of a local government financing report. There is no power, however, to make regulations to exempt payments as a result of changes through a reset.
If I am mistaken, I would like the Minister to indicate where that power lies. If no such provision exists in the legislation, will he confirm that the Government will honour the commitment they made in their response to the consultation and will amend the Bill so that any payments resulting from a reset can be disregarded—and disregarded in full—for the purpose of the TIF areas? The Minister would be welcome to accept my new clause if he needs to do so.
Order. [Interruption.] Order—the hon. Gentleman must not test my patience even more. Interventions are welcome, and I am prepared to give a little leeway, but the hon. Gentleman is almost making a speech.
Thank you, Mr Deputy Speaker. I got the gist. I welcome this Bill and I want it to work. My fear is that without the certainty around potential resets—we do not know when or how often they might happen; we do not know whether they will happen every 10 years; we do not know how they will work in future—there will be huge risk and uncertainty in the system. It is not a question of whether I am satisfied by the provision; it is a question of whether the potential investors, who will determine whether the TIFs work or not, are satisfied. I am trying to convey the sentiment that I have picked up from my discussions with banks, commercial organisations, the British Property Federation and some of the City’s policy experts, who all say, “Look, we require a ring fence; it must be total”. Thus leaving out the reset, which the Government promised they would not do, does not make sense if we want the provisions to work. I hope the Minister will be able to provide the confirmation we need and be able to build it into the Bill. This issue will certainly need to be confirmed at later stages of the Bill.
Amendment 62 is designed to get to the heart of the relative share of the business rate take as between central and local government. The figures for projected resource spending on local government under the current spending review demonstrate a significant reduction for next year and the year after that—of nearly half a billion between this year and the next, and of more than £1.5 billion between next year and the year after that in nominal terms. Alongside that, the projected yield from business rates is set to go up by nearly £1 billion next year and by more than half a billion the year after that. That means that the gap between the projected business rates yield and central Government’s commitment to resource spending on local government is more than £2 billion for next year, and £4 billion for the year after that. There is a significant and growing gap between the business rates yield and spending on local government.
(12 years, 10 months ago)
Commons ChamberI am very grateful to my hon. Friend for giving way and I congratulate him and the Committee on the report. Does he think that the code will help Mr Wild, who runs a very popular pub in Rotherham, whose business is being throttled by the terms of his tenancy? He tried to arrange with Enterprise Inns to buy his cask ales free of tie. He was told it would be £10,000 to £15,000 negotiable but was then told, three days later, it would be £20,000 non-negotiable. He asked for that to be put in writing but was refused. He was then told that the agreement would be for each one of his cask ales, not all five, and that it would be not a one-off payment but an annual payment.
Order. A lot of Members want to get in, so we need shorter interventions.