Budget Resolutions and Economic Situation
Mike Wood Excerpts(2 weeks, 2 days ago)
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Mike Wood (Kingswinford and South Staffordshire) (Con)
Will the right hon. Gentleman give way?
Peter Kyle
I will make some progress, because lots of Members want to speak, and I have not even got on to the main argument that I want to make.
There are real benefits from this Budget. In my constituency, the council tax rebate will impact positively on 42,000 homes. The same will be true in the constituency of the right hon. Member for Herne Bay and Sandwich (Sir Roger Gale) and in others around the country.
The Chancellor also mentioned directly the defence dual use investment for companies doing dual-use innovations. When he was Defence Secretary and I was Secretary of State at the Department for Science, Innovation and Technology, we worked together, and it was the first time that the Secretaries of State of those two Departments came together to work on the strategic challenges and opportunities faced in the defence industry. I am really pleased that we now have a Chancellor investing in dual use. It will be based on the conversations and workstreams that we set up when we were those two Secretaries of State. Those two roles should work together going forward.
When Labour came to office in 2024, we inherited a growth emergency. Now we have taken solid steps forward, but we must still have the mindset that we are facing a growth emergency. It is my belief that we are on a motorway heading in the right direction but even now are only travelling at 30 mph.
I believe that the challenge we face is a complacency that was set down in previous times, when we took growth for granted. From the 1997 Government onwards, for a decade before the financial crash, I think it is fair to say that we felt that growth was dependable—that there was a sense of inevitability about growth. We could focus on all the social issues we wanted to tackle based on the proceeds of that growth, but we did not pay enough attention to underpinning growth and making sure that it was sustainable into the very long term.
Andrew Lewin (Welwyn Hatfield) (Lab)
This is a Budget that supports those who need it most through the winter and that ask the banks, which are on course to make record profits, to make a greater contribution. Crucially, it backs young people with the ambition to own their own home and to build a business.
There is lots to reflect on. As the newest member of the Treasury Committee, I intend to get into the detail in the weeks to come, but I will start with the international context. It is crucial that we have an honest debate in this House and in the country about the impact that context has on all of us. It is true that we are spending billions more on debt interest than was projected just a few months ago, but that is not because of extra borrowing by this Government; it is because of the global spike in inflation caused by the war in the middle east. It is also the case that the IMF has praised our Government for taking decisive action on deficit reduction. However, in the 21st century no country and no economy can stand alone.
Andrew Lewin
It is news to me that I will be writing the manifesto, but I am always open to a promotion. Our spending review will cover all elements of spending on public services, but this is a Government who have backed public services, unlike the Conservative party.
In a more uncertain world, it is imperative that the UK lives by our values. I have been going through the Red Book, and—this is on page 103—the single biggest increase in investment announced today is in our defence, to fund the defence investment plan. That is a very important statement of intent at such an uncertain time for our country, Europe and the world, which is further demonstrated by the package of £10 billion for additional support in loans to Ukraine.
Before the Budget speech, I was pleased to hear the Prime Minister reassert how important it is to him that we have a stronger economic trading relationship with the European Union. Also—I will be honest—I am slightly pleased by how much it upset the hon. Member for Harwich and North Essex (Sir Bernard Jenkin), because that means we are going in the right direction. It is a sad state of affairs that the Conservative Party has drifted so far away from mainstream business opinion that they are saying they will not countenance any improvement in our deal with the European Union. That is why people in areas such as mine, Welwyn Hatfield in Hertfordshire, are no longer voting Conservative.
Mike Wood (Kingswinford and South Staffordshire) (Con)
The disappointment of today’s Budget is that, having put on his running shoes for the media earlier this week, the Chancellor spent his statement running away from the big challenges facing the country and ducking each difficult decision. The first big challenge that he ducked was getting a proper grip on the public finances, so that we do not have to leave our children and grandchildren with spiralling national debt. He tells us that everything is under control because the OBR says that his fiscal rules have technically been met, but the public are not fooled by Treasury scorecards, and neither are the markets.
Just like his predecessor, the Chancellor promises to bring borrowing down right at the end of the period covered by his fiscal rules, in this case with the hidden promise of 2.6% annual spending cuts, which includes those 2% a year cuts from mainstream schools every year, after the next general election. Those steep cuts will clearly never happen, and the markets know it. In the meantime, he did not say that he was increasing borrowing from 2.9% to 3.4% next year, and from 2.5% to 2.9% the year after—billions in extra borrowing. Like his predecessor, the Chancellor seems to take his inspiration from St Augustine: “Oh Lord, help me to be pure, but not yet.” Every year, the date for that fiscal restraint is pushed back another 12 months and borrowing revised up in the meantime. He speaks of fiscal discipline, but this is fiscal policy on the never-never.
Nowhere is the reason for that fiscal timidity clearer than on welfare. All hon. Members know that public spending cannot be controlled and Britain cannot get back to work without proper structural reform to a ballooning welfare bill, but where we needed action, all we got were yet more taskforces, reviews and procrastination.
That failure on welfare leads directly to the most sorrowful failure in the Chancellor’s entire Budget: national defence. The Chancellor knows the urgent need for an immediate plan to increase defence spending to 3% of GDP by 2030 better than anyone; it is why he said he resigned as Defence Secretary earlier in the year. He knew the Government were playing Treasury accounting tricks—tucking MI5, pensions, the Chagos Islands bills and even £200 million for doing up Barrow-in-Furness high street under the badge of “defence spending” to pad out a press release—but when we strip out those tricks, our armed forces are facing a real-terms cut in their day-to-day running costs over the next three years.
Finally, the Chancellor had the chance today to undo the terrible damage done by his predecessor and inject real, sustainable growth into our economy. Business distress is at a 20 year high. High street names like Poundland are collapsing, and young people have paid the heaviest price of all, with surging numbers of NEETs and a genuine youth jobs crisis. Nowhere feels the triple whammy of high employment costs, punitive business rates and relentless regulation more acutely than our hospitality sector. Our pubs, bars and restaurants are the heart and soul of communities like mine in Kingswinford and South Staffordshire—
Mike Wood
No, we are coming to the end of the debate.
Those pubs, bars and restaurants are the No.1 place where young people get their first foot on the jobs ladder. The Chancellor’s announcement on small business relief will clearly be welcomed by those firms that qualify, but the truth is that it will do little to help most hospitality businesses. Fewer than one in 10 restaurants and licensed premises are set to benefit, with the rest continuing to suffer from Labour’s business rates bill hike.
The Chancellor had a simple, practical lever right in front of him today—a meaningful increase in the alcohol duty differential for draught beer and cider pulled across the bar in a well-run local pub or restaurant, compared with cheap bottles and cans stacked high in supermarket aisles. It would have helped our British breweries, helped save community pubs and protected hospitality jobs for young people. Again, the Chancellor knows that: in opposition, he called for cuts in beer duty, but in the Treasury he is hiking the main beer duty rate. He ignores the cross-party pleas for big reductions in draught beer duty, and instead hammers publicans and brewers once again, with another hike in the beer duty he used to say should be cut.
The Chancellor needed to step up and take the decision needed to help pubs and hospitality. Instead, just like on debt, on welfare and on defence, he ducked it. Our businesses, our young people and our armed forces cannot afford to wait in a holding pattern until this Government discover their courage.
Defence
Mike Wood Excerpts(7 months, 2 weeks ago)
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Louise Sandher-Jones
No, I need to make time.
Our £1 billion contract for new medium helicopters has helped to secure the future of the Leonardo plant in Yeovil, sustaining more than 3,000 jobs. We have spent millions more on drone procurement and development, including, earlier this month, an order for 20 uncrewed surface vessels, which will be built by Kraken in Hampshire and take us a step closer to our vision of a hybrid Navy.
That is not a frozen procurement pipeline; it is a Government delivering for British security and the British economy. It is possible only because we are investing £270 billion in defence over this Parliament. We are delivering the biggest sustained increase in defence spending since the end of the cold war, and we are growing our defence industrial base by backing UK-based businesses and UK workers. That vote of confidence is matched by record foreign direct investment totalling £3.2 billion since the election and the most successful year on record for British defence exports, bringing a defence dividend to every part of the country.
The Opposition have got one thing right today: we do live in an increasingly dangerous world, and we see every day the skill, professionalism and expertise of our personnel in defending our people, allies and interests in the middle east. It is all the more staggering, then, that the Conservatives cut frigates and destroyers by 25%, cut minehunters, and—in the words of their former Defence Secretary—left our armed forces “hollowed out and underfunded”. That is their record, and today we have heard no acknowledgment of it, so it falls to this Labour Government to take action to put that right.
Last June, as part of the SDR, we announced up to £1 billion extra, above Conservative plans, for air and missile defence. We have been leading NATO’s initiative on delivering integrated air and missile operational networked defences—DIAMOND—and this year alone we have boosted spending on counter-drone systems by five times, and spending on ground-based air defence has increased by 50%. In an era of growing threat, we are delivering for defence, and we will not repeat the Conservatives’ mistakes.
I was surprised to hear the Conservatives speak about morale, which plunged to record lows on their watch, when they slashed real-terms pay and saw record numbers of housing complaints. This Government have delivered the largest pay increase in two decades. We are investing record amounts in statutory services, including £9 billion in forces housing, and renewing and repairing nine in 10 forces homes. The Conservatives left serving personnel in damp and mould-infested homes. I am so pleased that we have funded 30 hours of free childcare for the under-threes in Scotland, Wales and Northern Ireland. We have taken more action in 20 months that the Conservatives managed in 14 years.
Let me address two points, if I may. As soldiers, we talk about how we fight, but it is also incredibly important to talk about why we fight. When I stood to become involved in politics, one of the things that I was most looking forward to—I knew that it would not be possible right away, but I hoped that it would be possible during this Parliament—was the scrapping of the two-child benefit cap.
That vote—being able to walk through the Lobby to scrap the cap—has been one of my proudest moments, because we cannot balance the books on the poorest children in this country. In closing, with the highest—
Madam Deputy Speaker (Judith Cummins)
Division off.
Question agreed to.
Main Question put.
UK Military Base Protection
Mike Wood Excerpts(1 year, 4 months ago)
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Luke Pollard
I thank the hon. Gentleman for raising the college at Harrogate. It is a really important part of the defence family and I know that the Minister for Veterans and People, my hon. Friend the Member for Birmingham Selly Oak (Al Carns), who is sat next to me on the Front Bench, takes an especially keen interest in the affairs of Harrogate. As the review is conducted and we see what lessons can be learnt from the incident at Brize Norton, we will be taking measures possibly at all military installations, including training establishments across the country if that is suitable. But I am certain that the Minister for Veterans would welcome a further conversation with the hon. Gentleman in relation to Harrogate in particular.
Mike Wood (Kingswinford and South Staffordshire) (Con)
Mr Deputy Speaker, you will remember that Willie Whitelaw famously offered his resignation after an intruder made his way into Buckingham Palace. Has the Minister considered his own position?
Strategic Defence Review
Mike Wood Excerpts(1 year, 5 months ago)
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John Healey
My hon. Friend is right, and he is sitting next to my hon. Friend the Member for Hackney South and Shoreditch (Dame Meg Hillier), who chaired the Public Accounts Committee that quite rightly saw and branded the defence procurement system as “broken”. The overhaul required is a measure of the extent of the reform. We have begun that and we will complete it.
Mike Wood (Kingswinford and South Staffordshire) (Con)
Recommendation 26 sensibly calls for the expansion of in-school cadet forces. Will the Defence Secretary work with the Department for Education to reverse its penny-pinching cuts, and reinstate school staff instructor grants to help extend cadet forces into more state schools?
John Healey
We will indeed work with the Department for Education in delivering the recommendation and ambition set out, quite rightly, in the SDR, which is to increase the number of cadets by 30% by 2030. It offers a unique opportunity for many young people to gain skills and experience that make a transformation to their lives and prospects.
Oral Answers to Questions
Mike Wood Excerpts(7 years, 9 months ago)
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Mr Ellwood
As I mentioned in my opening remarks, that is a concern, and we must address it. Pay has never been an issue in the armed forces. When I joined up, it was not an issue. People do not join the armed forces for the money, but we do not want it to become an issue. I was pleased that the pay freeze was lifted last year, with a 2% rise. Effort is also being made to improve accommodation and provide flexible working, which is the main ingredient that forces people to depart, because they are unable to spend enough time with their families. Those changes have been introduced, and I hope they will affect the morale of our armed forces.
Mike Wood (Dudley South) (Con)
The Secretary of State for Defence (Gavin Williamson)
As we start the new year, I want to pay tribute to the men and women who spent Christmas away from home in service of their country. Over the Christmas period, I visited UK armed forces personnel in Ukraine, South Sudan and Kenya. It was excellent to see the work they are doing in the security, peacekeeping and humanitarian fields.
Gavin Williamson
What we are seeing in Ukraine is the most dreadful of situations, where Russia’s aggressive acts include Ukrainian sailors being held against their will, and they continue to be held against their will. As an act to demonstrate their intent for 2019, Russia and the Kremlin should be looking at letting these men return to their families and friends at the earliest possible opportunity. We are supporting the Ukrainian people. We have already seen HMS Echo visiting Odessa, and the Royal Marines will start training with Ukrainian forces in the very early part of this year.
Oral Answers to Questions
Mike Wood Excerpts(8 years, 8 months ago)
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Damien Moore (Southport) (Con)
Mike Wood (Dudley South) (Con)
The Parliamentary Under-Secretary of State for Defence (Mr Tobias Ellwood)
The Ministry of Defence works with a range of partners to ensure that service personnel and veterans receive the best mental health support possible. There has been a comprehensive overhaul of our approach to mental health, as I mentioned earlier, with our mental health and wellbeing strategy. However, I stress that the number of mental health cases dealt with in the armed forces is smaller than in the general civilian population.
Mr Ellwood
There are over 400 military charities that support not just our armed forces and the veterans, but the whole veterans family—the community—and SSAFA is just one of them. It does immensely important work in providing the support that our armed forces and veterans not only deserve, but request.
Mike Wood
Mental health problems place a great strain on relationships, while family breakdown can worsen mental health issues. Will the Minister ensure that mental health support extends to service personnel families, with a particular focus on providing support to keep military families together?
Mr Ellwood
My hon. Friend is absolutely right. It is often not the person themselves who steps forward to recognise there is a mental health concern, but the partner, or the husband or wife, a family member or maybe a comrade in their unit. It is important that we provide the necessary support, which we are doing. It is a very macho environment, and unfortunately there has been a stigma attached to putting one’s hand up and saying there is issue, but we are moving forward, not just in society but in the armed forces, in challenging that.
Oral Answers to Questions
Mike Wood Excerpts(10 years, 4 months ago)
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Michael Fallon
As I say, I have spoken to all my fellow Defence Ministers in these key relationships, and we will have to work hard to ensure that these bilateral relationships are kept in good repair. We have strong defence relationships and defence sections in these embassies across Europe, and we will have to look at them independently and make sure in the Brexit negotiations that none of that co-operation—the joint training, the exercising and the co-operation on capabilities—is put at risk.
Mike Wood (Dudley South) (Con)
What representations has my right hon. Friend received from our allies and defence partners about renewing Trident, which the new shadow Defence Secretary described as
“a monumental mistake our country and planet can ill afford”?
Michael Fallon
As my hon. Friend knows, we are committed in our manifesto to replacing the four Trident submarines, and I hope Parliament will be able to endorse the principle of that replacement shortly. Our allies can rest assured that our commitment to NATO and our commitment as a nuclear power to NATO are not altered by the result of the referendum.
Oral Answers to Questions
Mike Wood Excerpts(11 years ago)
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Will Quince (Colchester) (Con)
1. What steps he is taking to increase the number of cadet units in schools.
Mike Wood (Dudley South) (Con)
5. What steps he is taking to increase the number of cadet units in schools.
Jeremy Lefroy (Stafford) (Con)
12. What steps he is taking to increase the number of cadet units in schools.
Mr Brazier
Those 145 extra units will all be in state schools. One of the new school cadet forces that we have formed is in north-east England and started against a very difficult background, but it is now so successful that pupils are required to show that they have completed a full year of good attendance and good behaviour before they can join it.
Mike Wood
As a former flight sergeant in a combined cadet force, I have benefited from the advantages provided by cadet forces in state schools that the Minister has described. Will the Minister join me on a visit to Brierley Hill Squadron’s air training corps in Brockmoor to see the excellent work that is being done with young people from a range of backgrounds?
Mr Brazier
I am most envious of my hon. Friend: I am afraid that I only made lance corporal in the CCF. His invitation is very tempting. I will be making a number of visits to CCFs—indeed, I was with the sea cadets yesterday, Trafalgar day, in Trafalgar Square —but I cannot promise an immediate visit to his constituency.
Armed Forces Bill
Mike Wood Excerpts(11 years ago)
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Mike Wood (Dudley South) (Con)
Will the shadow Minister explain how we could have a credible nuclear deterrent if we were to have a Prime Minister who had already said that he would never use it?
Mr Jones
It is up to the Prime Minister of the day to write whatever advice he or she wants in the letter to the commanders. The hon. Member for South East Cornwall said that our policy had changed, but it has not. It is very clear. End of story.
Labour Members past and present have contributed to the armed forces and I know that my constituency and those of many other Members make a tremendous contribution through their sons, daughters and others who work not only for the regular forces but for the reserve forces. I am proud to represent a constituency with a long history of connection with the forces, and long may it continue. I reassure everyone that I will ensure that I champion their interests and ensure that their welfare, which is important in terms of this Bill, is taken care of.
The hon. Member for North West Hampshire (Kit Malthouse)—I am not sure whether he is in his place—made an important point. The Bill refers to drug testing, but, as we all know, one of the biggest issues that needs addressing, which was an issue when I was a Minister, is alcohol. The question is how we address that, not in a nanny state way but by ensuring that people’s health is not affected by the drinking culture not only while they are in the armed forces but after they leave. Perhaps we could consider the question of alcohol and the armed services in Committee.
The hon. Member for Strangford talked about the contribution made by his part of the world to the armed forces as well as the idea of ensuring that people’s voices and complaints are heard. I, too, welcome the Government’s commitment to the service complaints commissioner.
We then heard three contributions from the Scottish nationalist party. I do not want to reiterate the issues about some of their points, but the Scottish nationalists cannot have it all ways. They cannot argue that they are committed to and want more defence resources for Scotland and then argue that an independent Scotland could produce even a fraction of what Scotland gets now.
I get a little disturbed when I hear the hon. Member for Dunfermline and West Fife use the phrase “the distribution of spoils in the UK” to refer to the armed forces, as though the defence of this country is somehow about moving resources around the country in such a crude way. It is actually about ensuring that the country is defended and has the capability to defend itself. He talked about warships never being based in Scotland, but conveniently forgot to tell the House that our submarine base and defence are in Scotland and that that would be put at risk if we followed the proposals to abandon the nuclear deterrent that he and his party want us to follow. The Scottish nationalist party should be honest in this debate and say that what is being proposed for an independent Scotland would not have anything near the footprint or the proud history that is there at the moment. He referred fleetingly to the idea of regiments, and the idea that the SNP would reinstate all those regiments in an independent Scotland is complete nonsense.
The hon. Member for Argyll and Bute (Brendan O’Hara) mentioned the White Paper on independence. I read it in detail, and not only its costings but its military strategy were complete and abject nonsense.