Budget Resolutions

Nusrat Ghani Excerpts

Monday 27th November 2017 Commons Chamber

[Boris Johnson]

It pains me to give any kind of negative answer to the hon. Lady, but I must tell her that my diary is very busy. I have had many meetings on the crisis in Rakhine and the Rohingya, and I am not at this stage able to consecrate the time that she wants from me. May I invite her to write to me and I will do my best to help her?

The reason the UK is one of the biggest donors to Bangladesh and to the solution of the crisis in Rakhine is that Burma, one day, will have a great future and we—our country—will be part of that future. When our soldiers and development experts are deployed in northern Nigeria—I have seen for myself the great work that they do—to help defeat the barbaric terrorists of Boko Haram, they are also helping to bring stability to a country rich in natural resources that will, by the middle of the century, have more people than the United States. When we strive to get girls into school in Pakistan, to unite the world behind Ghassan Salamé’s plan for a peaceful Libya, to improve the resilience of Bangladesh to flooding, to help Kenya to beat corruption, or to help tackle the problems of Somalia—all areas in which the UK, global Britain, is in the lead—we are doing the right thing for the world, but we are also investing in countries with huge potential, filled with the consumers of the future.

Our exports rely on shipping lanes and clear international rules enforced with rigour and fairness. We will not be so foolhardy as the Leader of the Opposition, who apparently believes that all this can be taken for granted and left to the good will of foreign powers.

[Ms Nusrat Ghani (Wealden) (Con)]

I am concerned that the Foreign Secretary might be moving on from the aid budget without mentioning a very good project that we are involved in—a finance initiative for women entrepreneurs that is helping women in the developing world to set up businesses, not only providing security and stability but enabling them in future to become trading partners with us.

[Boris Johnson]

I am delighted that my hon. Friend has made that valuable point. The emphasis that she places on women’s commercial potential and ability to drive the economy is absolutely right, and it is one of the reasons why all UK overseas effort is focused, above all, on the education of women and girls. I believe that that is the universal spanner that unlocks many of our problems.

We believe that the international rules-based system, on which our safety and prosperity depends, must be defended and upheld. To that end, my right hon. Friend the Chancellor has ensured that Britain has the biggest defence and overseas aid budgets in Europe. The Foreign Office, the Ministry of Defence, DFID and our intelligence services will have a combined budget of £51.2 billion this year, allowing Britain to devote more resources than any other European country to safeguarding our interests and projecting our influence worldwide.

Today, the UK accounts for 13% of the EU’s population but 16% of its GDP, 21% of its defence spending and 25% of its spending on development aid. None of that will be lost to our European friends after we leave the EU, because, as the Prime Minister has said, our commitment to the defence and security of Europe was unconditional and immovable long before we joined the EU, and it will remain equally resolute after we leave.

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[Ms Ghani]

I am a little bit concerned that the right hon. Lady might be misleading the House. The 0.7% figure is enshrined in law, and surely she recognises the extra funding placed not only with the World Service but the British Council, which does a huge amount of work on human rights and education, and deals with some of the trickiest countries around the world. We should not dismiss this country’s commitment to international development.

[Emily Thornberry]

I simply refer the hon. Lady to the Red Book, where she will see that there is less money being spent on international development. It is a great worry to us all and I know it will be a great worry to her. I therefore hope she will join us in speaking to the Chancellor about our responsibilities, because we are at a time of great difficulty internationally. As I have been attempting to outline, there are cuts not only from the United States but the EU. If we are, in effect, spending less money, too, at such a precarious time, that should cause us all concern. It was extraordinary that the Chancellor of the Exchequer chose not to mention it at all in his speech.

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[Tim Loughton (East Worthing and Shoreham) (Con)]

It is very difficult to follow that speech, but on an upbeat note, I welcome this measured, balanced and forward-looking Budget, which, coupled with today’s industrial strategy, looks beyond Brexit with optimism and realism. Alas, the same cannot be said of the Momentum alternative from the Opposition. Only the shadow Chancellor, or perhaps Paul Daniels, could possibly have the chutzpah to claim that spending commitments of £330 billion already racked up, resulting in debt interest payments of £270 billion over the next Parliament—as predicted by the very forecasters whom the right hon. Member for Islington South and Finsbury (Emily Thornberry) was so keen to quote earlier—would amount to nothing and pay for itself.

We cannot be complacent, and I certainly welcome the renewed urgency in tackling the productivity deficit and the industrial strategy, which concentrates on smart technologies, clean technologies, fast technology and preventive technology, because that is key. This year alone, China and India will each produce 1 million engineering graduates, many of them working in manufacturing and service sectors in high-tech industries. In 20 years, many of the growth jobs will be jobs that do not exist today, so education is key. That is why I welcome the investment in research and upskilling that is a hallmark of this Budget and today’s vote of confidence by the pharmaceutical companies in this country’s future in that area.

I welcome the help for business and the end of the staircase tax, which was feared. I welcome the help for small house builders in particular, with the extension of the home building fund to help more house building projects on small sites. I also welcome the commitment to more homes. We need to build more homes, as well as more new towns, so I welcome the stamp duty exemption for first-time young buyers. There are some unintended omissions. People will not qualify if buying a property jointly with somebody who has previously owned one or even somebody who has made a loss on previous properties. There are also question marks over how shared ownership is treated, but the principle is absolutely right.

However, we need to be more imaginative in promoting rent-to-buy schemes and creating incentives for the three quarters of a million empty properties that we still have in this country. There is also the bigger issue of fairness in stamp duty. The average price of a house in my constituency of Worthing is £327,000, while in Wrexham it is just £179,000 and in Wakefield it is £186,000, but the rate of stamp duty is the same. Should it not be based on size rather than price, depending on what part of the country people live in? We need to incentivise downsizing by older people to free up family homes, and they would still have to pay stamp duty under the current regime. We need to think smarter about incentivising imaginative intergenerational developments that encourage and enable families to stay closer to each other, rather than being priced out of the area where they grew up.

As chairman of the all-party parliamentary wine and spirit group, I should like to cite one world-beating industry: the wine and spirit industry. It supports 554,000 jobs in this country and generates £50 billion for the economy.

[Ms Ghani]

As my hon. Friend might know, the Foreign Office has 274 posts in 168 countries, and they are perfectly placed to export or promote English sparkling wine, specifically from my constituency of Wealden, as outlined in my ten-minute rule Bill, which he supported earlier this year.

[Tim Loughton]

My hon. Friend anticipates my next point. I am delighted that the Chancellor chose to freeze the duty on wines and spirits, but the duty on a bottle of wine is still £2.16, and the duty on a bottle of sparkling wine is £2.77. In France, the duty on a bottle of wine is 2p. Surely, after Brexit, we can give a boost to the English wine industry, which will be producing 10 million bottles, to allow our quality wines to compete even more on an international level. English sparkling wine beats French champagne hands down in blind tastings throughout the world. Also, why should there be a higher rate of duty on sparkling wine, when it is of a lower alcoholic strength than still wine? Surely that point has been conceded, given the action that is being taken on white cider.

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[Sir Hugo Swire (East Devon) (Con)]

Coming at a time when we are exiting the EU, this is a prudent Budget. Obviously, we would have liked to see more of our own special things in it, but that is the nature of a Budget. The problem for the Opposition is that, despite stresses in some areas, the British economy is performing pretty well on the whole, which is why the polls show that, even at this stage, the Conservative party is either level-pegging or ahead of the Opposition, which is a real problem for them.

Leaving the EU presents the United Kingdom with an opportunity to think about itself, to redefine itself and to decide where it wishes to go. It was US Secretary of State Dean Acheson who, in the aftermath of the second world war, famously said:

“Great Britain has lost an empire and not yet found a role.”

That was true. When we think about our withdrawal east of Suez and about throwing our lot in with the EU, an individual British role was in a sense submerged by those events, but it is now incumbent on us to talk Britain up and our constituents want us to do that. It may be a difficult challenge for some and, judging by some of the contributions from the Opposition tonight, that is not their inclination, but people want us to talk Britain up and to think about how we can reinvigorate our advantages. With one of the best militaries in the world, we have hard power. We are committed to NATO, and we encourage others to spend the amount of money that we are spending. We are a permanent member of the UN Security Council. Those things give us real global influence, and we should be proud of them and guard them jealously.

Increasingly, our soft power cannot be divorced from hard power; we need to use them both at the same time. We have our values, our parliamentary system, the work of institutions such as the British Council, our culture and our royal family. I say that at a time when the world is yet again focused on us due to the engagement of Prince Harry and Meghan Markle.

[Ms Ghani]

My right hon. Friend mentioned the British Council, which recently noted that one in seven world leaders studied at a British university. That presents a great opportunity for us not only to promote our universities, but to export our values overseas.

[Sir Hugo Swire]

My hon. Friend is absolutely right, and I will come to that in a minute. When I used to travel around the world on behalf of the Foreign Office, it was fantastic to have the GREAT Britain campaign branding everything that the UK was doing.

On the subject of the Foreign Office, I note that the budget will be £2 billion in 2017-18 and then £1.2 billion in the subsequent two years. I have some nervousness here. I understand the arguments about official development assistance, but let us compare that with the Department for International Development’s budget in those years: it goes from £7.6 billion to £8.2 billion—I cannot quite understand how the right hon. Member for Islington South and Finsbury (Emily Thornberry), who speaks for the Opposition, managed to regard that as a cut. I believe that the Foreign Office should own what the UK does abroad. There are too many departments in capitals around the world that do not dovetail with what the FCO is doing. I will leave it until another time to make the point again that the more closely integrated DFID is with the FCO, so much the better.

The Foreign Office needs to expand. We are obviously withdrawing from the European External Action Service—the Federico Mogherini-led overseas diplomatic corps of Europe—so we need to think about where we are going to re-resource our posts around the world. I believe in an international, rules-based system, and I believe in Britain’s role in it. I would also like the UK Government to lead on a new financial architecture. The Bretton Woods system is outdated and fails to recognise the emergence of countries such as China.

I want a properly resourced military that retains our amphibious capabilities and our peacekeeping role. I want the UK to engage better with the Commonwealth, and what better opportunity is there to restate our commitment to it than the Commonwealth Heads of Government meeting in London next April? I want the UK to recognise and recommit to our responsibilities to our overseas territories. I ask the Foreign Secretary whether we can press the OECD harder to look at the redefinition of aid and to consider why we cannot provide more aid to the overseas territories. Some of the calculations on middle-income countries are fallacious. Financial services are counted in those calculations, but the money does not go to individuals in those countries—the money often flows in and out. We should be able to fund our overseas territories properly.

I would like us to engage with the neglected markets of Latin America. I would like British companies to take advantage of China’s one belt system. My hon. Friend the Member for Wealden (Ms Ghani) referred to scholarships, and we should boost the Chevening, Marshall and Commonwealth scholarship programmes, possibly bringing them together as one scholarship programme. We can continue to lead on climate change and on protecting vulnerable states—