Finance (No. 3) Bill

Oliver Letwin Excerpts

3rd reading: House of Commons & Report stage: House of Commons
Tuesday 8th January 2019 Commons Chamber

[Mr Speaker]

An extremely brief speech, I feel sure, from Sir Oliver Letwin.

[Sir Oliver Letwin (West Dorset) (Con)]

Thank you, Mr Speaker. I rise to support amendment 7, to which I am a signatory.

My right hon. Friend the Member for Mid Sussex (Sir Nicholas Soames), who is sitting next to me, and I have calculated that we have been in the House, collectively, for 56 years, and we have only ever, either of us, voted once against the Conservative Whip. This will be the second time that we will both be voting against the Conservative Whip, and I want to explain why. First, I want to say one thing about what this amendment is not. The right hon. Member for Normanton, Pontefract and Castleford (Yvette Cooper) and my right hon. Friend the Member for Loughborough (Nicky Morgan) gave eloquent expositions, but what they did not mention is that, in contrast to some things that have been suggested, it has no impact whatsoever on the Government’s ability to prepare for Brexit—it is about what the Government do after Brexit.

Secondly, clause 89 is an item that those of us who have been Ministers for a number of years will recognise as an “abundance of caution” clause. Some group of lawyers somewhere stuck in the bureaucracy clearly alerted Ministers to the possibility that they did not have certain unspecified powers and said it would be a good idea to have some unspecified powers in case the lack of unspecified powers turned out to be important. I do not think therefore that this amendment, in itself, will be likely to have a huge impact, if any, on the Government of this country.

That brings me to the question of why I am supporting this amendment. The answer is that it is most extraordinarily important to make it clear to the Government that it is not just this amendment. It is the precedent that this amendment sets, which is that on any power taken in any Bill in relation to the exit of the UK from the EU, if there is a majority in the House today and there continues to be a majority against no deal, it will be possible to bring forward similar amendments. It is my proposal that we should indeed do that. I want to make it abundantly clear to those of my hon. Friends who are thinking of voting against the Prime Minister’s deal, which I shall be supporting, that the majority in this House, if it is expressed tonight, will sustain itself, and we will not allow a no-deal exit to occur at the end of March.

My last point is on why I am so passionate about not allowing such an exit. Many Members, including the Father of the House, have spoken eloquently about the long-term dangers to our economy of WTO trading and so on. My right hon. Friend the Member for Wokingham (John Redwood), for example, very much disagrees with that. I do not take a particular view about that. My preference is for a continued free trade deal with the EU, which is by far our largest trading partner, but in contrast to some, I do not want to argue that there would be a disaster in principle if we were on WTO terms. I do not believe it would be disastrous. I think it is suboptimal but not disastrous.

For five long years, I was in charge of the resilience of this country. During that period, I saw many examples of our civil service, military and security apparatus being prepared or not being prepared for certain issues that closely affected the wellbeing of our country. That is one reason why two years ago I passionately argued—my right hon. Friend the Member for Wokingham will recall an occasion a year ago when I made that argument even more forcefully—that the Government should undertake serious preparation for a no-deal exit. That would have had the effect that some of my hon. Friends mentioned. It would have altered our negotiating position. It was not done.

I have been in awesome detail through the papers produced. I have listened to the briefing for Privy Counsellors. I have consulted senior officials across Whitehall. I know what the RAG ratings of red, yellow and green mean—nothing. I know what it is actually to have prepared for dealing with the gas interconnectors, the electricity interconnectors and the many other details concerned.

Some of my hon. Friends and others in the country believe they can assure that under circumstances where we wreck the deal, refuse to make all the payments that the EU is expecting and falsify its expectations of a reasonable departure, the EU will then reasonably set out to work with us in a calm and grown-up way to ensure a smooth departure. It may be so. I am in no position to deny that it will be. I do not make lurid projections. Anybody who believes that they know it will be so is deluded.

I do not believe that we in this House can responsibly impose on our country a risk that may be severe or serious short-term disruption, for the sole purpose of gratifying the possibility that we avoid certain eventualities that certain Members of Parliament would prefer to see avoided and on which nobody in this country ever voted because they were never asked to vote on it. Under those circumstances, I will be voting with the right hon. Member for Normanton, Pontefract and Castleford against my own Government and very much against my own will, and I will continue to do so right up to the end of March, in the hope that we can put paid to this disastrous proposal.

[Mr Speaker]

The right hon. Gentleman’s succinctness is a textbook of how to help the House, and I hope it will now be closely studied.

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[Robert Jenrick]

The point I have just made is that the law of the land is that the UK will leave the European Union on 29 March, and nothing contained in amendment 7 will change that. As I will come on to say, the only difference that the amendment will implement is to make the UK somewhat less prepared for that eventuality. The purpose of clause 89 is to provide taxpayers and—

[Sir Oliver Letwin]

rose—

[Robert Jenrick]

I give way to my right hon. Friend.

[Sir Oliver Letwin]

I am grateful to my hon. Friend, who is doing a valiant job—I do not envy him. Does he accept that although, as he says, the law at present is that we will leave on 29 March, the House of Commons, with the House of Lords and Her Majesty, has the ability to change that provision?

[Robert Jenrick]

The House of Commons has the right to make the law, but the law as it is today is that we will leave on 29 March. The point I am making is that, whatever the intentions of the right hon. Member for Normanton, Pontefract and Castleford and those who may wish to support amendment 7, all that will be achieved by supporting it is denying our citizens and taxpayers the degree of certainty that we wish to give them.

[Sir Oliver Letwin]

rose—

[Mr Kenneth Clarke]

rose—

Class 4 National Insurance Contributions

Oliver Letwin Excerpts

Wednesday 15th March 2017 Commons Chamber

[Mr Hammond]

I have to say that that was an extraordinary contribution, because the hon. Lady cannot have it both ways or, to put it another way, have her cake and eat it. She wants me to adopt a broad interpretation of manifesto commitments and to adhere to it, and she wants me to protect the revenue base by addressing the difference in contribution treatment between the employed and the self-employed. I say to her, as I have just said to my right hon. Friend the Member for Loughborough (Nicky Morgan), that we will have to address that difference in due course. However, given the interpretation that is clearly out there of the manifesto commitment that was made, our priority now is to show that we will deliver on the spirit as well as the letter of that commitment, and we will not increase national insurance contributions in this Parliament.

[Sir Oliver Letwin (West Dorset) (Con)]

I am sure my right hon. Friend is right to deal with this issue in the round, but I hope he will not allow that in any way to deflect him from the very sensible Budget judgment he made in respect of fiscal neutrality or from the need for the structural reforms he is putting forward. Did he notice, as I did, that the shadow Chancellor asked him to fill the gap without reducing spending or increasing taxes? Does he know how that could be fulfilled?

[Mr Hammond]

The straight answer to my right hon. Friend is that only in the la la land that the Labour party occupies is that trick possible. Of course, my right hon. Friend is right to draw attention to the issue, and I emphasise again my commitment in this Budget to fiscal neutrality—the right hon. Member for Hayes and Harlington, of course, does not believe in fiscal neutrality.

Draft Bank Recovery and Resolution Order 2016 Draft Bank of England Act 1998 (Macro-Prudential Measures) Order 2016

Oliver Letwin Excerpts

Monday 5th December 2016 General Committees

[Sir Oliver Letwin (West Dorset) (Con)]

I am aware that the Committee is not able to propose amendments. I will certainly want to support the orders, but can I induce the Minister to make a comment, which might be useful for the purposes of subsequent legislation and perhaps any subsequent court actions, in relation to article 32, particularly the removal of directors and senior executives under section 71B? May I draw his attention to an oddity of drafting? He will see that under section 71H the regulator can impose the requirements for a new temporary manager only if he reasonably considers that it is necessary for the requirement to take immediate effect. That seems to be proper drafting. However, under 71B, bizarrely and very unusually in this kind of illustration, there is no reference to reasonableness as a test. It states,

“If the appropriate regulator is satisfied that the conditions in section 71D(1) and (2) are met”—

essentially, if there is significant deterioration in the bank’s solidity, the appropriate regulator may require the firm to remove the person who is a director or senior executive, so there is no reasonableness test there. I think that is an oversight in the drafting, but we cannot change the drafting. Is the Minister therefore willing to put on the record what I think must be the intent of the Government, namely that 71B would apply only where the regulator is reasonably satisfied that the conditions are as such? I take it that that is the way the court would then read it and I think the possibility for mischief would be removed.

Oral Answers to Questions

Oliver Letwin Excerpts

Wednesday 9th December 2015 Commons Chamber

[Jo Cox (Batley and Spen) (Lab)]

5. What assessment he has made of the effect of changes announced in the spending review and autumn statement 2015 on local services provided by the community and voluntary sector.

[The Chancellor of the Duchy of Lancaster (Mr Oliver Letwin)]

I am glad to be able to tell the hon. Lady that the autumn statement significantly increased the funding for the voluntary and social sector in the Cabinet Office. That has enabled us to expand the National Citizen Service and our efforts on social impact bonds. I am delighted to see that in the hon. Lady’s constituency, Kirklees Council has issued a very good compact with the voluntary and community sector, showing how the council can collaborate with them. I very much hope that the sector can take advantage of the extra funds now available.

[Jo Cox]

As the Minister will be aware, our country is in the grip of a growing social care crisis, with significant funding shortfalls projected by 2020. There are huge pressures on families, carers and the NHS in my constituency and nationwide. Will he say what specific plans he has to support those charities that are currently plugging the gap in terms of care, but are under enormous strain?

[Mr Letwin]

The charity sector as a whole has an income of about £40 billion a year, which is broadly stable. I have been looking at the council accounts for the hon. Lady’s area. It turns out that Kirklees Council has £200 million in useable and unused reserves. The problems to which she refers are not real ones.

[Mr David Burrowes (Enfield, Southgate) (Con)]

Tackling complex needs effectively has been something of a holy grail out of the reach of previous Governments, so I welcome the commitment in the autumn statement to £105 million in social impact bonds to tackle complex needs and perhaps get us closer to that holy grail.

[Mr Letwin]

I very much agree with my hon. Friend, who has been a passionate advocate, as I and others have been, of social impact bonds. This is a huge change in the way our country is organised. We can get to the point where we are actually paying for outcomes, not inputs. We lever up the amount the Government put in on behalf of the taxpayer, with huge contributions from the private sector and from those double bottom line investors. We can see a huge transformation in public services.

[Anna Turley (Redcar) (Lab/Co-op)]

Last week, the Minister said that the Government were committed to a flourishing civil society, but in the recent spending review it was exposed that the Office for Civil Society is to be hollowed out to just a handful of civil servants, and is now described by the sector as just a “name on a door.” Does the Minister agree that this is a clear admission that the big society agenda is now dead, was never anything but a cover for cuts to public services, has served its purpose, and is now to be wound down?

[Mr Letwin]

I am sorry that the hon. Lady did not take in what I said in my earlier answer. The funding for the voluntary and community sector increased significantly in the autumn statement. I pay tribute to officials in the Office for Civil Society, which answers to my hon. Friend the Minister for Civil Society. In my experience, those officials are among the finest in Whitehall. They will continue their work, and with that increased budget, they will be able to do more, not less.

[Chris White (Warwick and Leamington) (Con)]

T1. If he will make a statement on his departmental responsibilities.

[The Chancellor of the Duchy of Lancaster (Mr Oliver Letwin)]

The Cabinet Office is responsible for increasing the efficiency of government and for delivering the Government’s agenda. I am happy to say that, with the help of the fine civil servants to whom I just referred, we are doing just that.

[Chris White]

Will the Minister outline the steps that the Government are taking to promote social enterprise, which is one of the fastest growing sectors in the economy?

[Mr Letwin]

My hon. Friend is absolutely right. The Government are totally committed to the social enterprise sector. That is partly about leading by example, which is why, in common with many of my hon. Friends, I serve in my village community shop—we all undertake these things. More than that, however, it is about creating the framework within which social enterprise can flourish. That comes back to the point made earlier by my hon. Friend the Member for Enfield, Southgate (Mr Burrowes) that social impact bonds offer a whole new future for the social enterprise sector.

[Ian Lavery (Wansbeck) (Lab)]

Many volunteers in the emergency services, particularly the fire and rescue services, were again heroically leading the rescue efforts in the flooded north-west region this week. The service has been at the receiving end of some savage cuts on the frontline, resulting in untold pressures. In Cumbria alone, 87 jobs have been lost. Is it not time that as part of a modern civil contingency and emergency national strategic plan, the Government agreed that flood rescue should be made a fully resourced statutory duty of the fire and rescue service? Can he say whether this issue of national importance was discussed at the Cobra meetings last week?

--- Later in debate ---

[Jeremy Quin (Horsham) (Con)]

T3. What plans does the Minister have to ensure that groups who are under-represented on the electoral roll register to vote?

[Mr Letwin]

We are fully committed to bringing more under-represented groups into electoral participation. That is why we are working with Operation Black Vote and other such groups to bring people in from the black and minority ethnic communities. I also draw my hon. Friend’s attention to the very interesting experiment being tried at Sheffield University to nudge the student population to sign up for an automatic registration system. We are looking very carefully at that.

[Christian Matheson (City of Chester) (Lab)]

T7. If it does indeed transpire that there are fewer people on the new electoral register after the introduction of independent electoral registration, will the Government consider that to be a success or a failure?

[Mr Letwin]

I think what the hon. Gentleman is missing is the fact that, as a result of the measures that have been taken, people who were not at the addresses at which they had previously been registered will be eliminated. The creation of an accurate register is an aim of democracy, not a defect of democracy.

[Mr Speaker]

Last but not least, the voice of Filton and Bradley Stoke must be heard.