Queen’s Speech

Lord Ahmad of Wimbledon Excerpts

Wednesday 25th May 2016 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Transport and Home Office (Lord Ahmad of Wimbledon) (Con)]

My Lords, it is a huge privilege and a pleasure to have the job of closing this debate, which ends the debates in your Lordships’ House on Her Majesty’s gracious Speech. We are on day four of those debates, and today we are just shy of another six hours of debate, with 50 speakers. Looking around the Chamber, I can detect a palpable sense of relief that we are nearing a conclusion. I am reminded of what Churchill once said:

“The head cannot take in more than the seat can endure”.

Perhaps many of us feel that. Although it has been quite a long haul, it has been an absorbing debate, covering five departments. It has been an extensive, thought-provoking and well-informed debate across the Chamber.

I take this opportunity to thank my noble friend Lord O’Neill, who opened the debate so eloquently. I also thank my noble friend Lady Williams for her support from the Front Bench.

It would be remiss of me not to immediately align myself with the many comments that have been made in congratulating the right reverend Prelate the Bishop of Newcastle on her excellent maiden speech. As we all know, delivering a first speech in this House is quite an achievement, but doing so in such a high-profile debate is doubly impressive. We have learned a great deal about the right reverend Prelate, including the fact that she is a marathon runner. I welcome her to her first marathon in your Lordships’ House, although, as she will appreciate, this is one that you have to do sitting down. She has already made a significant contribution to the diversity of the House. As we all know, she is the second woman Church of England Bishop to take a seat in your Lordships’ House. I know I speak for everyone across the Chamber and beyond when I extend the warmest of welcomes to her. I look forward to working with her on a range of issues in the coming months and years.

I also wish to thank all noble Lords who have contributed today, and over the past few days, to the debate on the gracious Speech. We are blessed with the experience and wise words of your Lordships’ House.

I begin by touching on the EU referendum. The noble Baronesses, Lady Bakewell, Lady Bowles and Lady Kramer, the noble Lord, Lord Cotter, and others talked about the EU referendum—in or out. As I have said from the Dispatch Box, the Government’s position is absolutely clear that the United Kingdom’s place in a stronger, safer and more prosperous Europe is within the European Union. It is just shy of a month until the referendum and I hope that the debate that takes place in the next few weeks, irrespective of which side one is on, is based on the facts and not on fear or fiction.

Her Majesty’s gracious Speech was about building a stronger, more resilient, more secure and more modern Britain. I cannot agree with some noble Lords who suggested that this is not happening. We believe that hard work should be rewarded and opportunity enjoyed at every stage of life by all, in a country fit for the future, no matter what challenges we face. If we have learned anything from the past decade, it is that we need to be more responsible during times of plenty, living within our means—a point well made by my noble friend Lord Flight—bearing down on our debts and planning for a surplus so that we can cope during difficult times. Certainly we will take no lessons from the last Labour Government who left what was a pretty big mess before the coalition Government took up the reins.

In the last Parliament, we had to make some tough economic decisions, but they were the right economic decisions. They helped make us one of the fastest-growing major advanced economies in the world. The noble Baroness, Lady Jones, perhaps painted a rather bleak picture. However, new figures published last week show that more people are in work than ever before: 31.5 million people in the United Kingdom have jobs. That means that the employment rate has risen to 74.2%, the highest since records began in 1971. The deficit is down by almost two thirds as a share of GDP and the OBR forecast is that it will be eliminated by 2019-20. However, I accept, as several noble Lords have pointed out, that there is more to do and our work is not yet complete. That is why, with the global economy slowing, it is even more vital that we stick to the long-term strategy behind our economic plan. Let me assure noble Lords that this Government will continue to focus on that as our main objective.

If I may, I will take each area in turn. I say at the outset that if there are questions that remain unanswered by the time I have finished my contribution, I will of course write to noble Lords.

Among others, the noble Baroness, Lady Jones, and the noble Lords, Lord Rana and Lord Smith, as well as my noble friends Lord Flight and Lord Leigh, raised the issue of tax avoidance, et cetera. The Government established the Pensions Regulator as an independent body to provide effective and proportionate regulatory oversight of work-based pension schemes. We have already announced that during this Parliament we will legislate for over 25 further measures on avoidance, evasion and aggressive tax planning that are forecast to raise £16 billion by 2021. We have also given HMRC an extra £800 million to fund additional work to tackle tax evasion and non-compliance by 2020-21. The UK’s percentage tax gap is also one of the lowest in the world. In 2009-10, the tax gap was 7.3%; in the first four years of the last Parliament, it fell to 6.4%.

The City of London came under some scrutiny during various contributions. However, we should be proud of the City of London. It is world-beating, and we need to ensure its competitiveness on the world stage.

We are committed to supporting savers at all stages of their lives. We have already made ISAs more generous and flexible, resulting in more than £20 billion more saved in ISAs in 2014-15 compared with the previous year. But the noble Baroness made some important points about the importance of financial literacy in education. That is certainly something that the Government continue to work on.

The noble and learned Lord, Lord Morris of Aberavon, and the noble Lord, Lord Giddens, raised the issue of steel. It should suffice for me to say that my right honourable friend the Secretary of State for Business, Innovation and Skills, as many know, was in India today. He has been involved in important discussions in this respect. I am sure that the House will be updated in due course.

The noble Lords, Lord McFall and Lord Oates, talked about the banking sector and particularly issues of transparency and accountability. Earlier this month, Parliament passed the Bank of England and Financial Services Act, which will fundamentally reform the financial sector. Notably, as many noble Lords will know, it will strengthen the governance, transparency and accountability of the Bank of England. It will also ensure that senior managers across the financial services industry can be held accountable for failings on their watch through the extension of the senior managers and certification regime.

My noble friend Lord Leigh asked a question about the Transatlantic Trade and Investment Partnership agreement which is currently being negotiated by the EU and the US. The recent amendment tabled on TTIP in the other place to the Motion supporting the Queen’s Speech was prompted by concerns that TTIP is a threat to the National Health Service, but the Government are quite clear that it is not a threat. I assure noble Lords that when it comes to issues around the economy, it remains a key priority for this Government and we aim to continue to build an even stronger, more resilient and prosperous Britain fit for all and fit for the future.

I turn to several cross-departmental themes. We have heard today about the work across five different departments and how this is helping to prepare Britain for the challenges ahead. What this debate has shown is that as we embark on the second year of this Parliament, strong themes connect each department and apply right across government. We will be looking at overhauling planning, giving cities and regions power over their destinies and rebalancing our economic geography, so we can share growth and opportunity across the United Kingdom. I accept the point that has been made that for far too long, the focus has been concentrated in the south-east.

The right reverend Prelate the Bishop of Newcastle, in her maiden speech, along with other noble Lords, including the noble Lords, Lord Shipley and Lord Shutt, also raised the issue of the northern powerhouse. I say to the noble Lord, Lord Shutt, specifically, that much is happening on the northern powerhouse. The Government are investing £20 million a year in the northern powerhouse skills strategy, for example, committing £161 million to accelerate the transformation of the M62, and £75 million to improve other road links across the north. From May 2017, 54% of the population of the north will be covered by elected mayors, backed with over £4 million of new funding. That will give local areas control over key powers including skills, transport and housing. That is perhaps why the shadow Home Secretary wants to put himself forward as the mayor of Manchester. Perhaps he needs to reflect on his own Front Bench responsibilities vis-a-vis the opportunities that are being offered to all from our decision to devolve powers.

There was a question about this Government but let me assure noble Lords that I only need to look to my left and right to see strong powerful advocates for the north. I assure noble Lords that the Government are also well represented across the board in ensuring that we build a stronger economy across the whole of the country. The noble Lord, Lord Shipley, made a point about Gateshead. Of course we will be speaking to Gateshead because it is important that we see collaboration in our regions. The noble Lords, Lord Shutt, Lord Kirkham and Lord Giddens, also raised issues about the Cities and Local Government Devolution Act that made its way through Parliament and will pave the way for places to take greater control and responsibility over policies such as transport, housing, skills, and key public services such as health and social care.

I can also assure noble Lords that in this year’s Budget the Chancellor gave a green light to HS3 between Leeds and Manchester, along with £60 million to develop detailed plans to reduce journey times as well as plans for the rest of the northern powerhouse rail network. Moreover, the Government have committed £150 million to implementing smart and integrated ticketing and £50 million to Transport for the North over the lifetime of this Parliament.

Perhaps I may turn to the DCLG. There are two new Bills which we have talked about today. We have already seen a revolution in neighbourhood planning, with 193 plans approved involving nearly 2,000 groups and covering around 10 million people. The new neighbourhood planning and infrastructure Bill will further empower communities, and let me assure my noble friend Lady Scott of Bybrook that it will give them a stronger voice while getting houses and infrastructure delivered as quickly and efficiently as possible. The Bill will also support our ambition to build 1 million new homes while protecting what we value the most—the green belt.

Several noble Lords, including the noble Baronesses, Lady Bakewell and Lady Thornhill, raised issues about housing and new homes. Reforms have already resulted in the granting of planning permissions for 253,000 homes in the past year. However, this debate has again illustrated how much further we want to go so that everyone who works hard in this country can have a home of their own. The noble Baroness, Lady Thornhill, also asked about affordable social housing. I assure her that we have protected the visibility of homelessness prevention by funding local authorities to receive support totalling £315 million by 2019-20.

I turn to other housing and planning matters. The noble Baroness, Lady Jones, talked about moneys which are being handed back through provisions we are making in business rates revenue which currently stand at around £26 billion. These reforms will mean that all income from local taxes will go on funding local services. The Government remain focused on delivering 1 million new homes of all different types and tenures, making neighbourhood planning an even simpler and more streamlined process. The noble Baroness, Lady Bakewell, talked about housing, planning and flood defences. We have delivered more than 277,000 affordable homes since April 2010 and we have committed to spending £8 billion to deliver 400,000 affordable homes by 2020-21. With regard to flooding raised in the context of pre-commencement planning conditions, the measures would not restrict the ability of local planning authorities to propose conditions that are necessary.

The second new Bill is the local growth and jobs Bill. We have seen a radical effect on local government in this country. It would allow us to fulfil our commitment to devolve spending to the regions so that local government as a sector can retain 100% of local taxes to spend on services by the end of this Parliament. Various other questions were raised by my noble friends Lord Young and Lord Caithness around issues related to homelessness and CPOs. Perhaps I may write to noble Lords in those respects. The noble Baroness, Lady Young, also raised an issue about adult social care funding. The Government are committed to providing support of up to £3.5 billion to ensure that councils are able to support their oldest and most vulnerable residents.

The noble Lord, Lord Shipley, talked about housing inequalities in the proposed Bills and why there can be devolved mayors in some areas but not others. If business rates are not sufficient to fund the local authority in an area, it will be necessary for the Government to adjust for those areas. On his other related questions, I shall of course write to him.

My noble friend Lord Kirkham talked about online companies and business rates, as well as the privatisation of the Land Registry mentioned by the noble Lord, Lord McKenzie. Again, in the interests of time I shall write to both noble Lords and copy in others.

I turn briefly to energy and climate change. We will introduce measures to deliver our manifesto commitment to increase competition and consumer choice in the energy market. The Government want to give consumers more power and choice through faster switching and more protection when things go wrong. Between 2010 and 2015 we reduced the UK’s domestic greenhouse gas emissions by 17%, the biggest reduction in a single Parliament. Moreover in Paris last year, as several noble Lords noted, we secured the first truly global legally binding agreement to tackle climate change. The noble Baroness, Lady Jones, and the noble Lord, Lord Morris, also talked about climate change. It is right to say that Paris was a great success and I pay tribute to my right honourable friend the Secretary of State for Energy and Climate Change, Amber Rudd, in this respect. The UK will provide £5.8 billion in climate finance over the next five years—50% more than the previous spending review—and has a clear plan of carbon budgets to reduce emissions.

The noble Lord, Lord Stunell, and the noble Baroness, Lady Featherstone, also raised a question about action on climate change. It is not true to say that we are not ambitious on climate change. We are phasing out coal, investing in renewable heat technologies, insulating 1 million homes and offering smart meters to every home by 2020. My noble friend Lord Holmes asked about Hinkley Point. It is not often I say this to my noble friend but I disagree with him. Hinkley Point is a vital part of our energy strategy. It will provide reliable energy at affordable costs, powering nearly 6 million homes for 60 years, and creating 25,000 jobs. The noble Lord, Lord Bruce, raised issues about supporting the oil and gas industry. The Government remain committed to supporting that industry, which plays a vital role towards our energy supplies.

Turning briefly to Defra, we are setting out ambitious plans to protect Britain’s environment to boost our farming and food industry. Defra’s 25-year vision is to make this country one of the healthiest and most beautiful places in which to live and raise a family. Our specific commitments include planting 11 million trees, completing a blue-belt network on marine protected areas by 2020, establishing clean air zones for five English cities and an ultra-low emission zone for London. We have seen growth across our economy over the past six years. While rural districts already generate billions of pounds for the UK, we are determined to do more to support jobs and opportunities in the countryside.

The food and the farming industry is an £109 billion industry that provides employment for 3.9 million people. Defra, as I have said, is currently finalising a 25-year plan for Britain’s food and farming industry. The noble Lord, Lord Palmer, and other noble Lords, also raised issues about GM crops, and I will write in that respect and with regard to questions raised by the noble Baronesses, Lady Parminter and Lady Featherstone, on the dairy industry.

The noble Baroness, Lady Parminter, also raised the issue of abstraction reform in the Queen’s Speech. In January 2016, the Government set out their proposed approach to reforming the abstraction system. I can assure the noble Baroness that the Government remain committed to implementing reform in the early 2020s. The noble Baroness and the noble Lord, Lord Trees, talked about the review of the EU birds directive. The UK Government want to ensure that the fitness check of the habitats and wild birds directive is both robust and maintains a momentum, and leads to positive changes for both business and wildlife. There are various other issues relating to Defra which my noble friend Lord Inglewood also raised, and I shall, of course, write in that respect, too.

Turning finally to transport—they say you should leave your own until last—for decades, we have seen Britain slipping down the global infrastructure league table. We have watched as our roads grow more congested, trains become more overcrowded, and our towns choked with traffic. Now we are climbing the infrastructure league table. We are ahead of France, Japan and Germany. Overall transport spending will rise 50% this Parliament. That means we can invest more than £15 billion to maintain and improve our roads, and we are spending more than £38 billion—the greatest expenditure on our railways since the Victorian era.

HS2—I thank the noble Baroness, Lady Kramer, and others for their support—remains at the centre of our transport revolution. It is the biggest infrastructure scheme since the motorways. It will provide extra capacity and the connectivity we need to meet growing demand.

Mention was also made of the infrastructure commission. This is a start for infrastructure that will make Britain one of the world’s leading transport investors. Her Majesty’s gracious Speech also supports legislation to establish the independent National Infrastructure Commission on a statutory basis. Indeed, the commission’s influence is already being felt. I assure noble Lords, including the noble Baroness, Lady Jones, that, following its recommendations, we have already invested £300 million to improve northern transport connectivity. I also assure the noble Lord, Lord Kirkham, and my noble friend Lord Caithness that we have given the green light to HS3 between Leeds and Manchester, and allocated £80 million to help fund the development of Crossrail 2. A point was made about promises not being delivered. Construction of Crossrail 1—or the Elizabeth line, as it will now be called—is more than 70% complete. It is on time and on budget.

Another Bill that will be introduced under transport is, of course, the modern transport Bill, which featured in Her Majesty’s gracious Speech. It is focused on the future—a Bill to pave the way for the technologies and transport of tomorrow. Some specific points were made, which I of course acknowledge—I welcome the constructive comments of the noble Baroness, Lady Ford, in that respect—while others perhaps questioned the merits of a spaceport before other infrastructure projects have taken place. It is important to emphasise that many of these things can run in parallel and that we should not take away from a sector that will be important to the UK’s positioning in the years ahead.

Many comments were made about the Bus Services Bill. I will not dwell too long on that. Suffice to say that I welcome the interaction we have had thus far with noble Lords. Yesterday we held a very constructive meeting. I underline again the Government’s intent to engage fully on ensuring that the Bus Services Bill truly does provide the new powers to local authorities to improve bus services and increase passenger numbers. It is our belief that stronger partnerships will allow authorities to agree a new set of standards for bus services. I look forward to working with all noble Lords, including my noble friend Lord Attlee and the noble Lord, Lord Berkeley, among others, to ensure a positive passage for this Bill through this House. It will receive its Second Reading I believe—I look towards the Chief Whip—on 8 June when we come back from the Recess.

I will give an assurance to noble Lords. Other questions have been raised on transport and other areas that we have covered today, but I feel that my popularity—if, indeed, I have much remaining—may be much lower if I carry on for much longer, not least with my two noble friends who sit behind me. Let me assure all noble Lords that the Government welcome, through the debate that we had today and over the last few days, the contribution of all noble Lords. We accept that it is for the Government to make their case for their Bills in this Chamber and in the other place, but we look forward to a constructive dialogue with all noble Lords across the Chamber to ensure that we move forward on our legislation.

To conclude, let me assure noble Lords that this is a Government who put the national interest before anything else, and nothing is more important to our national interest than a strong, stable and growing economy—one which provides the opportunities that people need to get on and achieve their ambitions. As the right reverend Prelate the Bishop of Portsmouth reminded us in his very thoughtful contribution, mention has been made of other places. Indeed, the Trump factor has been talked about. Do you know what? I am proud of Britain. Notwithstanding the challenges that we have, we provide opportunity for all. It does not matter who you are, where you come from or what background, culture, community or faith you have: you have an opportunity to progress. Those are the kinds of values that this Government wish to protect. I know that that is a sentiment shared across the Chamber.

A strong, stable and growing economy provides the jobs that families need to feel secure and the services that communities and businesses rely on. But what this debate over the past week has shown me clearly is that we are looking forward beyond the economic recovery, making the reforms that will deliver the long-term prosperity that our nation needs. As I said, I look forward to engagement across the House in this respect, and not just in the area of transport—I speak for all my colleagues in government. We look forward to our exchanges in this Chamber and beyond to ensure that, together, we make Britain a stronger, safer, more competitive nation, with the infrastructure to ensure that it remains a leader among the nations of the world.

Motion agreed nemine dissentiente, and the Lord Chamberlain was ordered to present the Address to Her Majesty.