Appointment of Lord Lebedev

Debate between Matt Western and Alex Cunningham

Tuesday 29th March 2022 Commons Chamber

[Matt Western]

Why should he? Why does he need actually to speak in the House of Lords? He has the power, the status and the influence, and, may I say, the protection that that peerage affords him, which is why we are limited in what we can say about him now. He has all the power that he wanted, all the influence he seeks, just by the very nature of that peerage. He need not say a word down the other end, and he probably will not, although we look forward to the moment when he does, and I am sure we will all be in the Chamber listening to him.

[Alex Cunningham]

I am sure my hon. Friend will agree that those friendships and networks go right to the top of Government, all the way to No. 10 Downing Street and the Prime Minister, who has enjoyed this person’s hospitality, travelled on his jets and holidayed with him. He has that contact, that influence, at the highest point of Government.

[Matt Western]

I do indeed agree with my hon. Friend. Just last week I mentioned the bunga bunga parties, which I think we should know a great deal more about. My hon. Friend the Member for Eltham (Clive Efford) mentioned, in connection with another case, the videotapes and negatives that may exist. I would not be surprised if they were held somewhere else.

Let me return to the issue of the appointment through the commission. I should be interested to know how many nominations it has rejected, and I have tabled a parliamentary question to that effect.

The Prime Minister’s relationship with Lord Lebedev is extensive, intimate and long-standing, and it should be of real public and national interest. However, for far too long their alleged collaboration has been ignored. As the proprietor of both the Evening Standard and The Independent, Lord Lebedev was clearly a useful contact for the Prime Minister in his role as Mayor of London, but the professional soon turned personal. It is reported that the Prime Minister attended four parties at Lord Lebedev’s Umbrian villa during his time as London Mayor—and then there are the bunga bunga parties. According to The Times, the Prime Minister visited Lord Lebedev’s fantasy castle in Perugia every October for five consecutive years, from 2012 to 2016. Remarkably, none of that has been reported by the Evening Standard or The Independent. I should have thought that, published in the celebrity or showbiz columns, it would attract a great deal of interest. However, The Times, thankfully, reports that the Prime Minister accepted £7,150 worth of flights, cars and accommodation from Lord Lebedev between 2013 and 2015.

According to the Prime Minister’s biographer, Tom Bower, the Prime Minister was told that when attending these parties, he could behave like a “naughty schoolboy”, and we know from a former Minister that “girls” were promised by Lord Lebedev. One particular trip, reported in April 2018, occurred just weeks after the attempted assassination of Sergei and Yulia Skripal in Salisbury. The Prime Minister managed to evade his close protection officers and, as has happened time and again, he refused to account for what took place. We know that Alexander Lebedev, a former KGB colonel—we say “former”, but we never know with these things—was also in attendance. What we also know is that the Prime Minister was on his way home—a very circuitous way home—from a conference of NATO Foreign Ministers. So, what was discussed with Alexander Lebedev and Lord Lebedev? Of course we do not know, but given its proximity to that meeting, it would be of real interest to find out.

The concern is not necessarily the friendship itself, although that is of course relevant, but the threat that it poses to national security. These concerns have been continually raised, going as far back as a decade. Sir John Sawers, the former head of MI6, reportedly made it clear that he did not deem Evgeny Lebedev a suitable person to meet, ahead of his meeting with Chris Blackhurst, the then editor of The Independent, which was soon to be bought by Lord Lebedev for a mere £1. Of course, it was not that cheap, given the sizeable debts that the newspaper carried. Since then, in 2013, Lord Lebedev has publicly questioned the murder of Alexander Litvinenko, tweeting an article casting doubt on who was behind the murder and writing:

“Was Litvinenko murdered by MI6?…Certainly more to it than the generally accepted Putin link.”

Let us follow the money. While Lord Lebedev has publicly come out against the invasion of Ukraine, his father, the ex-KGB agent with large shares in Gazprom and Aeroflot, remains silent as millions flee and thousands perish in the dreadful war in Ukraine. Lord Lebedev’s father, who has held significant investments in Crimea since Russia occupied it in 2014, also retains a significant share of the newspaper via Lebedev Holdings.

I raise the personal relationship between Lord Lebedev and the Prime Minister only to highlight the extent to which it has obviously influenced the decision to award Lord Lebedev a peerage. It has been reported that civil servants were stunned by the Prime Minister’s move to question the security services’ assessment of the appointment. The only justification I can find for the Prime Minister’s dismissal of this security advice is his personal relationship with Lord Lebedev. Personal interests over national security. Whatever happened to Sir Mark Sedwill, the former Cabinet Secretary and, as I understand it, the lead on UK intelligence?

Lord Lebedev’s case also raises wider questions about the glaring weaknesses that exist within our political donations system. A Labour party calculation based on Electoral Commission information estimates that donors who have made money from Russia or Russians have given £1.93 million to either the Tory party or constituency associations since the Prime Minister took up his position. Since 2010, the figure is £4.3 million. For example, Lubov Chernukhin, who is married to Vladimir Chernukhin, a former Finance Minister under Putin, has donated £700,000 to the Conservative party. In October, the Pandora papers revealed that Vladimir Chernukhin was allowed to leave Russia in 2004 with assets worth about $500 million and that he retains Russian business connections. In October 2020, the right hon. Member for South West Norfolk (Elizabeth Truss), now the Secretary of State for Foreign, Commonwealth and Development Affairs, posted a picture on Instagram of herself and Lubov Chernukhin at a party at the Goring hotel, with the hashtag “#cabinetandfriends”. Unfortunately, foreign money and foreign interference go hand in hand, and I am afraid that this Government are compromised by both.

In summary, the appointment of Lord Lebedev, the dismissal of security service advice in favour of personal interest, and the wide-ranging influence of dubious Russian money in our politics are deeply concerning and worrisome. A Prime Minister acting in his own self-interest, not the national interest, is extremely serious. This Humble Address will merely scratch the surface, for I fear that there are decades-worth of personal connections to unearth, financial loopholes to close and national vetting procedures to tighten before we can truly say we are a

“democratic, liberal nation, strong, healthy and free”.—[Official Report, House of Lords, 12 May 2021; Vol. 812, c. 63.]

That is why I will be supporting our motion.

Working People’s Finances: Government Policy

Debate between Matt Western and Alex Cunningham

Tuesday 21st September 2021 Commons Chamber

[Matt Western]

I thank the hon. Member, or perhaps I can suggest friend. Indeed, we have been insulated these past 10 years from the ravages of inflation that some of us know—perhaps my hon. Friend the Member for Stockton North (Alex Cunningham) would say this—can erode business confidence and have an extreme impact on household budgets.

[Alex Cunningham]

I well remember the Thatcher Government, when interest rates went up and up and up and up. Even those on good wages were struggling, so it was even more difficult for others. There is a storm ahead for many people. Does my hon. Friend agree that savings are very important? The average savings for a low-income household are £95, while a high-income person is likely to have £63,000 in savings. Who is going to come off worse?

[Matt Western]

My hon. Friend makes a very important point. We all have to understand that it is easy to talk about numbers and statistics in the abstract, but the reality for so many people, as he illustrates, is that they do not just have the uncertainty and insecurity of zero-hours contracts and the pressures of the cut to universal credit, but having so little money in the bank brings pressures on households. And here we have inflation about to rip into those households through the energy price increases I am going to come on to talk about.

I talked about the Chancellor and the Prime Minister. Those in corporate business and in senior positions in Government must know what is happening to inflation. They must know what forecasters are saying. When commodities are bought, all energy costs are forward priced—they know what is coming down the track—so the Chancellor could suggest only a 1% increase for nurses when he knew all along that there was likely to be a significant spike in inflation coming. Energy costs are a major issue, one that has perhaps been the driver to this particular debate, alongside the cut in universal credit. We have long known for months that there was going to be an increase in gas prices of 12% in October. That will have a significant impact on household bills. The average gas and electricity bill for customers will go up by £139 a year to just under £1,300. Now, we have to rely on the Government to get a grip to avoid further increases as a result of this unfolding crisis.

It is fundamentally a failure of long-term Government planning over the past decade that we, as a country, are so exposed and vulnerable to rising gas prices. We should have been building energy resilience, instead of being one of the countries most reliant on foreign gas. We should have been investing in domestically produced renewable energy. Instead, we squandered 10 years burning fossil fuels. When I was working on Warwick District Council as a councillor seven years ago, I proposed the Warwickshire energy plan to save people money, create energy resilience and address energy poverty. Sadly, there was not the gumption to follow through on that, and I am disappointed it never materialised.

[Matt Western]

I thank my right hon. Friend for that point. I think the important thing is that the Cameron-Osborne Government in particular became obsessed with fracking and took their eye off the ball with other energy sources. In Warwickshire, we had Algy Cluff come and visit; he was a significant donor to the Conservative party, I think, and he was really interested in having blocks under Warwickshire that he would frack. That undermined long-term planning for projects like the one that my right hon. Friend mentions.

If the Government had followed through, we could have been building zero-carbon homes since 2016. Instead, the Cameron, Osborne and—dare I say it—Liberal Democrat Government scrapped the regulations for housing developer donors. A million homes could have been built since 2016, but something like 10% of households in my constituency are in fuel poverty already and I can only see that figure rising. Several thousand homes in my constituency could have benefited from forward-thinking house building and zero-carbon homes, because we have seen such an explosion in house building across south Warwick and south Leamington.

[Alex Cunningham]

My hon. Friend might not know this, but I was in the gas industry for many years, as I mentioned earlier, and I was involved in a warm homes system. We went door to door, systematically insulating people’s homes and windows doing all manner of other things, but the current Government have done away with that. They have also done away with much of the responsibility on energy companies to do more in that space. Does he agree that energy companies could be expected to do much more to insulate our homes?

[Matt Western]

I absolutely agree—it is such a key point. There are so many schemes that could be introduced, and there is some excellent practice across Europe; I think it is currently beyond the wit of the Government, but as chair of the all-party parliamentary group for council housing I am certainly keen that we should push for it.

On energy costs, I go back to the point about heavy manufacturing. I am passionate about our manufacturing sector—not just the automotive sector, which I have talked about often, but chemicals, aerospace and steel. We have heard the comments that my hon. Friend the Member for Aberavon (Stephen Kinnock) made about the impact on steel, but the impact will be felt throughout our manufacturing: steel goes into the food and drink sector as much as into automotive and elsewhere.

The reality is that the price varies for energy. For gas in the UK, I think that I am right in saying that there is a 40% premium against the average in Europe, which is making us uncompetitive in comparison and will have an impact on future investment and, ultimately, on jobs.

Food prices are another big driver of inflation. The price of food and drink in shops and supermarkets has risen by more than 1% in August, the highest growth since 2008. Food commodity prices have increased by 17% since the start of the year. The Food and Drink Federation says that the cost per household of food and drink shopping will increase by more than £160 per year because of Government policies—that is the federation speaking, not me.

Various hon. Members have mentioned the supply chain disruption, which will lead to higher prices. We have heard about the shortages of heavy goods vehicle drivers, but there are also shortages of refrigerants and carbon dioxide, and of course there is the additional complexity of delays at borders and ports.

I turn to travel. I asked the Minister about the price of petrol, but in July petrol prices hit their highest level in almost eight years. It now costs £74.26 to fill a 55-litre family car with petrol, a 17% increase—17% seems to be a repeating figure—since the start of the year, by the Government’s own data. Diesel, by comparison, has risen by just 14%.

Rail fares are not faring any better. The Government are planning fare rises of 4.8% next year, way ahead of inflation. The average commuter faces paying £3,300 for an annual season ticket, 50% more than in 2010. An annual season ticket from Leamington to London, incidentally, now costs £8,700, a significant amount of money.

As for housing, rents have risen at their fastest rate since 2008, at a time when we are seeing declining home ownership, and the vulnerability that confronts so many people as more and more are living in the private rental sector. Rents in the west midlands are now £1,192 higher than they were in 2011, and incomes have certainly not kept pace with that.

[Matt Western]

My hon. Friend is spot on. Short-term thinking often costs much more in the long term, and impacts of that kind will have very long-term consequences on people. We all know about the impact on mental health and how that can then affect people’s home lives, social lives and family lives, but it can also affect their working lives, which can have an economic consequence too, as well as increasing costs in the national health service and elsewhere.

We need to build more social housing for rent. Just 21 social rent council homes have been built in the Warwick district since 2010.

Let me now turn to the unimaginable and, I think, inadmissible cut in universal credit. It just underlines how out of touch this Government are that they are cutting the £20 uplift. Reversing that decision would prevent families from experiencing an even sharper hit during this cost of living crisis. I think it shameful that the very workers who got us through the crisis are now in the firing line for a £1,000 cut in their income every year. I think about the carers, the shop workers and the delivery drivers—all the people who kept the wheels of the economy turning through such difficult times. Data from the Joseph Rowntree Foundation shows that in Warwick and Leamington, which I think many people would assume to be a prosperous area, 13% of working-age families—6,300—and 29% of working-age families with children will be affected by the cut. This really is a poverty policy.

We have heard a great many claims about levelling up, but the one area in which the Government seem to be succeeding is levelling up on taxes which are more regressive than ever. We may think back to the increase in VAT from 17.5% to 20%; now we are seeing a rise in national insurance and rises in council tax across our local authorities. The average band D council tax set by authorities in England in 2021-22 is just under £1,900, a 4.4% increase on the 2020-21 figure. These are real costs to people. As we have heard, the national insurance increase is the biggest tax rise for families—the most significant change—in 50 years. Graduates now face a marginal tax rate of nearly 50%: that, surely, is a tax on aspiration.

[Alex Cunningham]

My hon. Friend talks about tax rates. He will be interested to know that a tweet has just come in from the Joseph Rowntree Foundation saying that

“191 Conservative seats will see more than a third of working-age families with children affected by the cut to #Universal Credit and Working Tax Credit. There’s still time for the Government to listen to the huge opposition to this cut and change course”.

I know that my hon. Friend will agree.

[Matt Western]

I can assure my hon. Friend that I absolutely agree with that. It was so telling that five or six former Conservative Work and Pensions Ministers said that they were absolutely against this cut. Of course, everyone on this side of the House is against it. It is also quite obvious to economists that the uplift should not be cut but left in place. The cost is £6 billion, I think, and in the context of some of the overspends that the Government have been guilty of during the pandemic, that is actually very little.

The cost of living tsunami that families will face in Warwick and Leamington and across the country this winter shows just how out of touch this Government are. Instead of making positive plans to tackle it, I am afraid that they are simply making it worse. We have the national insurance and council tax increases, and now we have the universal credit cut. The Government are failing to tackle the supply chain disruption that has been exacerbated by covid and Brexit, and we now have rising energy prices, rail fare increases and rising rents. The Government seem to be happy to waste huge amounts of taxpayers’ money on outsourcing and crony contracts, and I just feel that they are really out of touch. They seem to know little about the true cost of living.

We have a Prime Minister who spends—or rather, gets his donor friends to spend—tens of thousands of pounds on the refurbishment of his flat, and a Chancellor who is happy to spend a significant amount of money on a swimming pool, but they will seemingly not listen to all of us saying that there is a need to retain the £20 uplift. I was really surprised when the Chief Secretary to the Treasury, the right hon. Member for Middlesbrough South and East Cleveland (Mr Clarke), did not know how much it cost to fill up a car. I will tell him: it is 77 quid. He had no idea how much people spent on petrol a year. I can tell him that it is 17% more than it was at the beginning of the year.

Oral Answers to Questions

Debate between Matt Western and Alex Cunningham

Wednesday 3rd March 2021 Commons Chamber

[Matt Western (Warwick and Leamington) (Lab)]

What assessment his Department has made of the adequacy of the implementation of the Northern Ireland protocol.

[Alex Cunningham (Stockton North) (Lab)]

What assessment his Department has made of the adequacy of the implementation of the Northern Ireland protocol.