(5 months, 1 week ago)
Commons ChamberClearly, anyone employed by a relevant defence company or in the UK Government will be subject to advanced vetting, which would likely preclude a number of the individuals my hon. Friend described. The main thing that we have got to do is increase our skills in this country, which is why we are investing in science, technology, engineering and maths. We are very fortunate in having three or four of the top 10 universities in the world in the United Kingdom—wherever I go in the world, people look at that with envy—which is a base from which both our intelligence agencies and industry can draw.
These cyber-attacks occurred in 2021 and 2022, so we really must ask how it has taken the Government so long to make this statement. We should reflect on the Deputy Prime Minister saying that these actors
“gained access to the Electoral Commission’s email and file-sharing systems, which contain copies of the electoral register.”
This is an election year, and it should put fear into the hearts of all of us that the Chinese have access to the UK’s electoral register, at a time like this when we are already worried about bad actors, about cyber-attacks taking place and about the use of AI.
The Deputy Prime Minister talked about taking robust action—good grief: two individuals are being sanctioned. Reference has been made to what happened over Novichok, when we swiftly took action to expel diplomats from this country and around the world. I hope that when the Chinese ambassador meets the Deputy Prime Minister, he will be told that diplomats will be expelled. Will the Deputy Prime Minister come back to the House tomorrow and tell us about the robust action that he should be taking?
You are confusing shouting with robustness.
(7 years, 7 months ago)
Commons ChamberI thank my right hon. Friend for his intervention; what he says is undoubtedly the case. The problem is that the Commission and other EU members move at a glacial speed, so there is unlikely to be a significant change in their approach to this pillar of the single market for some time.
Of course this issue was not the only factor, but it certainly gave strong impetus to the argument that the only way we could resolve the situation was through a policy of renegotiation followed by a referendum, which was what we fought the 2015 election on. Again, the Commission dogmatically refused to compromise on its conception of free movement, which was bolstered by Chancellor Merkel’s experience of growing up as a child of East Germany and innate hostility to any imposition of borders. Going into the referendum, we therefore could not credibly say that significant control had been restored.
Pitted against that strong argument for leaving the EU was the significant economic risk and dislocation that arose from losing unfettered access to a market of half a billion people, which we had achieved through full membership of single market. The decision therefore was about a difficult balance between control and risk, which was why it was absolutely right to put such a profound question to the British people in a referendum. We should be quite clear that the dilemma of EU membership was, in essence, the dilemma of our membership of the single market: the benefits of having free movement of goods, services and capital set against the loss of control over our laws and migration policy. These issues were the essence of the debate.
My innate conservatism favoured not taking that risk, but the British people took an alternative decision—this was whole point of asking them in the first place. So it is clear that not only should I respect that decision and vote to invoke article 50, but that I should also seek to implement it fully, which must mean leaving both the single market and the customs union. For people to claim that the Government do not have a mandate to do that is to completely ignore how we got to this situation in the first place.
Equally, however, we must be clear about the other choices that we have taken. I am glad that the economy has maintained momentum after the initial political decision to leave, and I am confident that in the medium to long term we can make a success of the huge liberation of leaving the EU. We can tailor our laws to meet the economic and trading interests of this country and those with which we choose to enter bilateral deals, rather than being bound by the lowest common denominator interests of a 27-member bloc. Indeed, we are well placed to exploit this position, as we have a centrally placed time zone, the English language, political stability, the rule of law, a competitive tax regime and tremendous creativity. But we should also not forget the risk we took by choosing to leave. I am sure that, in the short term, the depreciation of sterling is likely to lead to price rises this year, squeezing disposable income and consumer spending. The terms of our access to the single market will be different, causing short-term dislocation. Of course, the Commission and member states will initially—
The hon. Gentleman correctly points out that the fall in sterling will lead to an increase in inflation. This Government have frozen benefits for the next four years, so does not that action and the fact that the autumn statement shows that growth is going to be lower mean that, as a consequence, a lot of people will be very much poorer?
Two things: first, record low unemployment means that there is tremendous opportunity for those people; and, secondly, wages across the board have not grown rapidly, so it is entirely right that constraint is applied to benefits.
Of course the Commission and member states will initially resist any deal that is not unambiguously seen as making the UK worse off from exiting the EU. I say that not to refight the battles of the past, but because if we expect the changes I have described, plan for them and manage them as the necessary consequences of the decisions we have taken, we will be better placed to see them through to opportunities in the long run. This is the beginning of a process of historic change in our nation, but it is a path we have chosen with our eyes open, through an exercise of our democratic rights, and we have many reasons to be optimistic. Government Members are now all on the same side, and we should seize the opportunities that this change of direction affords us.
(8 years, 10 months ago)
Commons ChamberThis is precisely the point that I would like to get on to. Despite the increased expenditure on tax credits, we continue to see these dreadful statistics on poverty, and that is because this is a flawed model that is based on taxing people on the minimum wage who can barely afford to pay tax, recycling that revenue through the welfare system and using it to top up low pay. That is not a sensible way to proceed.
I will give way once more, but I am aware of Madam Deputy Speaker’s injunction.
We understand, from survey after survey, that millions of people in this country are going to be worse off as a result of these measures. What is the hon. Gentleman going to say to his constituents who come to him after next April having lost on average £1,300 of their income?
I would say to those people that this Government have a clear and coherent plan for helping people on the lowest incomes that consists of three elements. The first is to increase the amount of money people can earn without paying any tax; by the end of this Parliament that will be increased to £12,500. That is lifting people working 35 hours a week on the minimum wage out of tax entirely. Secondly, we are introducing a national living wage which by the end of this Parliament will increase wages to £9 an hour. Thirdly, we are introducing a number of other measures such as free childcare which will help those in most need of it. That is a far better model—to move from a low-wage economy with high tax and high welfare to a higher wage, lower welfare and lower tax model.
(8 years, 10 months ago)
Commons ChamberAbsolutely. I hope that we will go on and have a robust debate about productivity in this country and about skills and innovation, because driving investment into the economy will drive wages up and negate the need for tax credits. None of us has a fundamental desire to see the long-term existence of tax credits, but they can only be removed when wages are driven up. What we cannot do is what the Government are doing and cut tax credits ahead of increases in wages.
I am going to make some progress, because I am aware of the time.
One has to ask about the moral compass of a Government who want to increase the inheritance tax threshold while the poorest in our society are being squeezed to such an extent. One nation, they tell us, but whose nation is that? It is not a country in which we want to live. Perhaps from an economic point of view we need to ask where the logic is in this policy. We are told that it is about getting the deficit down, but taking cash out of the pockets of the poorest means taking cash out of the economy and depressing economic activity. Those on low incomes tend to spend what money they have. This provision does not fix the deficit; it takes spending—[Interruption.] That is patronising? I will tell Government Members who is being patronised, and that is poor people in this country.
Let us make it clear, as we did during the election in Scotland, that we want to get the deficit down but that this is not the way to do it—[Hon. Members: “How?”] Members ask how we will do that, and I am happy to give them an answer since they have given me the opportunity. I remind them that we won the election in Scotland, with 56 MPs returned for the SNP, and we had a progressive message that we delivered to the people of Scotland of investing in our country by increasing spending by a modest 0.5% per annum that would have delivered additional spending in the UK of £140 billion and would have reduced the deficit to 2% of national income by the end of the decade. That is a much more responsible way to deal with the future of our country.
There is a philosophical question of whether effective support through tax credits for employers paying low wages excuses those employers from paying a real living wage that offers dignity for work. I would argue that we all want to reach a situation in which work pays, to the extent that those in work have a decent standard of living. The SNP has been championing a real living wage as a response to dealing with poverty and that would mean that hard-working families would become financially sustainable, driving up tax revenues, reducing the deficit, enhancing economic activity and, ultimately, leading to an enhanced fiscal position. The desire to make work pay, which the SNP fully supports through the idea of the living wage—the real living wage, not the Tory construct—has to go hand in hand with an environment that encourages productivity, but we know that that has not happened for the past eight years, with productivity flatlining and even the OBR’s forecast for the next four years showing only limited recovery in productivity. We cannot have sustained growth in wages unless we have growth in productivity.
No, I am going to make some progress.
We need a national debate about how we can strengthen and drive sustainable economic growth, driving up living standards and making work pay. We can only reach a high wage economy with investment in skills, innovation and business. That is not happening, and its absence is why we need the safety net of tax credits. That is why the Government must reconsider what they have voted through.
The Resolution Foundation has shown that the so-called living wage will boost wages by £4.5 billion by 2020, nowhere near the impact of the £13 billion of cuts to various working age benefits. It cannot be acceptable that working people pay such a price. We need to cut inequality, not drive it, which is what the Government are doing.
Let us come back to the example of the family losing £1,525 of their income next year. What will the Government say to such families when they are faced with difficult choices? Family budgets are already tight and something has to give.