Priorities for the Government

Lord Newby Excerpts

Thursday 25th July 2019 Lords Chamber

[Baroness Smith of Basildon (Lab)]

My Lords, I am grateful to the noble Baroness for repeating today’s Statement. I concur with her words about the Chief Whip. It feels as if he is having a daily testimonial at the moment, to which he is fully entitled, and he should enjoy it. I regard him as a genuine friend in the House. I have been his shadow in different jobs since I joined your Lordships’ House in 2010. I look forward to his contributions from the Back Benches and will still regard him as a friend in this House.

Dave Evans is also retiring today. His 24 years’ service to this House is a great achievement and shows true public service. I gather there are drinks on the Terrace for those who want to buy him a drink later today. The noble Baroness spoke about Theresa May as Prime Minister. She has had a tough time as Prime Minister, and I suspect she will show more loyalty from the Back Benches to her successor than she received. I am pleased to see the noble Baroness is still in her role, although I have more trepidation about some of her colleagues in the Cabinet. As I heard the announcements being made last night and today, it brought to mind one of my favourite TV programmes, “Yes, Prime Minister” because I could hear Sir Humphrey saying, “That’s very courageous, Prime Minister”. This is the noble Baroness’s first experience of repeating a Statement in the style of her new boss. She might have to work on the hand gestures.

In the first days on the job for any Prime Minister, bluster and bravado must meet reality. The new Prime Minister tells us he is presenting his blueprint for our country. I welcome his apparent change in tone on the value of public services, but he has to realise that despite the hyperbole in the Statement—that is what it is—the threat of no-deal Brexit creates enormous uncertainty. There is no clear plan about how we would cope with the risks to communities, families and British businesses or, indeed, the risk to the union. The Prime Minister says in the Statement that he will put the future of our union “beyond doubt”. It takes more than just words. Noble Lords are aware that there is a very real fear that the impact, particularly the economic impact which will be heavily felt, of no deal on Scotland will lead to further attempts to break up the union that we greatly value. On Northern Ireland, the Prime Minister said that there are possible arrangements for the Irish border that are compatible with the Good Friday agreement. Can the noble Baroness tell us what they are? What does his commitment to the Good Friday agreement look like in the event of no deal?

On public services, a key part of the Prime Minister’s speech was about the apparently bright—I think he described it as broader and bolder—future of the UK, which appears to involve reversing large swathes of Conservative policy that he was previously in favour of. I am all for reversing Conservative Party policies. The Prime Minister has promised 20,000 new police officers, yet he was part of the Government who cut 21,000 police officers and as a result we have seen an increase in violent crime on our streets. I know the noble Baroness has a particular interest in education. She will know that our schools are struggling to cover basic costs. Some have even been forced into a four-day week. That was inevitable given that there has been an 8% cut in per-pupil funding since 2010. Education funding should not be regarded as an electoral convenience. Can the noble Baroness give assurances today that areas of greatest need will see their funding increased rather than reduced? We are also promised an increase in funding for our health service. Can she confirm that, as previously promised by the Prime Minister, it will add up to no less than £350 million extra a week? I saw it on the bus, so it must be true.

Over the years, many have laughed, some with, some at, Boris Johnson in his various guises. We can all enjoy slapstick buffoonery, whether it means dangling from a zipwire or falling over in a dirty pond. There is always space for a genial comedian, but that is not the role of the Prime Minister. Gaffes may appear endearing when you are an MP on the Back Benches, but in a Prime Minister they are potentially very dangerous. So, as he will have realised—I make special reference to Mrs Nazanin Zaghari-Ratcliffe—words must be chosen with great care, for every word of a Prime Minister is a word on behalf of our country. They will be pored over and analysed, and they can, as we saw when he was Foreign Secretary, have great consequences.

Our country is now more divided than ever before. While the new Prime Minister obviously wants to carve out his own style, his duty has to be to try to heal the wounds. If there is to be a vision for our country, it has to be about confidence about our place in the world, being outward looking and being optimistic for the future. That cannot wait until 2050, as outlined in the Statement. Last year, we celebrated the centenary of some women gaining the vote. I remind the noble Baroness and your Lordships’ House of the suffragettes’ wise motto: “Deeds not Words”. It is on our deeds that we are judged, not our words. It may come as a shock to Boris Johnson that that applies to him too. In the announcements made so far, it appears that the new Prime Minister is telling us that he rejects austerity and is heralding significant increases in public spending. What he has not told us is where the money is coming from and how we pay for and cope with the disaster of a no-deal Brexit. The true test will be delivery.

[Lord Newby (LD)]

My Lords, I shall begin with a number of congratulations. I congratulate Mr Evans on his retirement. The good news for Members of your Lordships’ House is that, on the basis that Parliament is at some point prorogued and we have another Queen’s Speech, he will reappear in his position as one of the Yeomen of the Guard. He cuts an even more impressive figure in that role than he does in his attendant’s garb here. He has been a huge source of help to Members, not least to new Members, and he will be much missed.

I said my congratulations to the Chief Whip on his retirement yesterday, and I would be very happy to do so again today—but I do not want it to go to his head, so I shall not.

The noble Baroness, Lady Evans, deserves congratulations on being part of a successful minority—she has not been culled. I for one will be delighted to carry on working with her on a range of issues, not least harassment, where she has taken a very firm lead and I and other members of the commission have enjoyed agreeing with her.

There are two reasons for congratulating the Prime Minister. The first is, obviously, on getting elected and becoming Prime Minister in the first place, and the second is on showing the kind of consistency that one wants, in principle, from people. There were some who thought that, on becoming Prime Minister, he would stop inhabiting a fantasy world and would start behaving in a responsible manner and discussing issues with a semblance of reality. That hope has been dashed, and the Prime Minister is showing a degree of consistency in inhabiting his world of fantasy that is truly remarkable.

It began yesterday. He said about Brexit—and, in particular, a no-deal Brexit—that,

“the ports will be ready and the banks will be ready and the factories will be ready and business will be ready and the hospitals will be ready and our amazing food and farming sector will be ready”.

I now have the great pleasure and privilege of living in a rural area. I spent part of last Sunday talking to farmers and food processors about their view of Brexit, bearing in mind that if you produce lamb at the moment you will face a 40% tariff on 1 November. Their view is that the thing for which they are getting ready is bankruptcy, because there is no way that they can survive on their current business model the day after we leave the EU. Is that what the right honourable gentleman has in mind when he talks about them being ready? And, frankly, the same sort of readiness applies to the other sectors that he mentioned.

Even leaving aside that extraordinary Panglossian view of what life is likely to be like in 2050, there are a number of other areas in his Statement today where he exhibits the kind of fantasy that, in fairness, he has been promoting for a long time. The first relates to the Northern Ireland border. As the noble Baroness, Lady Smith, said, his views about being able to leave the EU, particularly without a deal, and having no problems at the Northern Ireland border are fantasy. He has said that under no circumstances will there be any checks on the Northern Ireland border. In the Statement he says:

“The evidence is that other arrangements are perfectly possible”.


The truth is that the evidence is that no other arrangements are evenly vaguely possible. So he is very good at asserting things, but their relationship to truth is something that he often struggles with.

The next fantasy is that we will,

“have available the £39 billion in the withdrawal agreement to help deal with any consequences”,

of no deal. One should bear in mind that there will be no deal immediately, but we will have great relations with the EU. We will have a great new arrangement, albeit without a deal on 31 October. Does anybody believe that a British Government will renege on paying a penny to the EU after 31 October? If they did, how would they survive? The Governor of the Bank of England correctly described our position as being reliant on the “kindness of strangers”. We have a massive balance of payments deficit, which will not go away, Brexit or no Brexit. So we need people to trust us so that they will lend us the money to survive. If that fantasy were pursued, our position would be even worse than would otherwise be the case.

Moving on, he says:

“Finally, we will also ensure that we continue to attract the brightest and best talent from around the world”.


As I have said before, the definition of brightest and best does not extend to many of the brightest and best in a whole raft of sectors, such as the brightest and best care workers, agricultural workers, lab technicians, health service workers and hospitality staff. He talks about an Australian points system. We already have a points system for immigration. In what respect will giving it an Australian accent suddenly change the way it operates and deal with the “brightest and best” problem for the rest of the economy?

Fantasies such as these are not a sound basis for government. It is not surprising that there are, in the Prime Minister’s words, some doubters, doomsters and gloomsters who believe that this reckless Government will be bad for the whole country, and that you will not find any group or organisation that will go from strength to strength under Boris. However, they are wrong. Excluding the old Etonians and extreme Brexiteers, there is one group that is already benefiting from Brexit and will continue to benefit as long as Boris Johnson remains in office. The rest of the country is in for a very hard time—but the Liberal Democrats are on the rise.

[Baroness Evans of Bowes Park]

I thank the noble Baroness and the noble Lord for their comments. I start by saying that the focus and aim are on getting a deal, and we believe that that is still possible. That has been very clear from the Statement. The Prime Minister has made it clear that he is very keen to engage as quickly as possible with the EU, along with my right honourable friend the Secretary of State for Exiting the EU, to see whether we can break the current deadlock. We have to remember that the current agreement has been rejected by the House of Commons three times. We need to address that and we hope that we will be able to do so. However, because we have not been able to get the withdrawal agreement through, we are having to focus on no-deal plans.

We have made a lot of preparations but the Statement reflects, as the noble Lord said, that we need to do more. That is why there will be a renewed focus and co-ordination through the Cabinet Office to make sure that we build on the preparations that we have already made. As I said, £4.2 billion has already been spent on preparations for all EU exit scenarios, and more funding will be made available if required. There is also a plan to start a new communications campaign to ensure that people are prepared. That will be on top of the 750 communications on no deal that we have published since August 2018. Noble Lords will know, for instance, that we have reached trade agreements with partners worth around £70 billion of current trade and we have an agreement in principle with South Korea that represents another £15 billion.

The noble Baroness and the noble Lord also talked about Northern Ireland. As has been made very clear, we are steadfastly committed to the Belfast agreement. They will be aware that exploration of alternative arrangements had already been accepted by the EU and was within the withdrawal agreement. Work is beginning on that and groups have been set up. There are various arrangements, including trusted trader schemes and electronic pre-registering, that can be looked at and brought together to help ensure that we never have to use the backstop. We can look at developing this technology to ensure that our commitments to Northern Ireland are kept.

The noble Baroness talked about some of the domestic issues and she is absolutely right. I myself am particularly interested in education. We will ensure that our education system enjoys real-terms increases, meaning that the budget will, over the course of this Parliament, increase by £4.6 billion a year. We have announced that we will up the levels of per-pupil funding in primary and secondary schools. We will make sure that the minimum primary school level of funding goes up to £4,000 and that the secondary school level goes up to £5,000.

The noble Lord asked about the Australian immigration system. The Prime Minister has asked the Migration Advisory Committee to make sure that we can learn what works best in the system and what lessons we can copy for our new system. It is not about committing to copy the Australian system wholesale; it is about learning from best practice and what works well.

Finally, the noble Baroness rightly raised the extremely concerning situation of Mrs Nazanin Zaghari-Ratcliffe. We are very concerned about her welfare. We are in regular contact with her family and our embassy in Tehran continues to request consular access. Whatever disagreements we have with Iran, an innocent woman must not be a victim, and we will continue to work to ensure that she can come home.