Infected Blood Inquiry Report
Sajid Javid Excerpts(5 months, 2 weeks ago)
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The Prime Minister
I thank the right hon. Gentleman for what he has said. Across this House, we share a determination to work together to ensure that nothing comparable to this shocking and avoidable tragedy can happen ever again in our country. Today is a day for the victims and their families to hear the full truth, unequivocally acknowledged by all, and to remember the many, many lost loved ones. As I have said, my right hon. Friend the Minister for the Cabinet Office will make a full statement tomorrow, but we will study every one of Sir Brian’s recommendations in detail and work urgently across all parts of civil society to ensure that innocent victims are never again forced to fight for decades to be believed.
Sir Sajid Javid (Bromsgrove) (Con)
I welcome my right hon. Friend’s statement, and, indeed, the words of the Leader of the Opposition.
This scandal—the biggest in the history of the NHS—along with the scandals of the Mid Staffordshire NHS Foundation Trust and those covered by the Ockenden and Cass reviews, are linked by public servants putting their reputations and that of the NHS above patient safety and care. Time and again, Ministers—including me—have stood at that Dispatch Box under successive Governments, promising that lessons will be learnt. I ask my right hon. Friend: why will it be any different this time?
The Prime Minister
Sir Brian’s report states categorically that this scandal represents a decades-long moral failure of the state, but in particular he highlights an appalling truth: that our national health service failed. It was known that blood and blood products given by medical professionals were contaminated. It is correct to acknowledge that medical practice has evolved—every day hundreds of thousands of our NHS staff do provide life-saving care for the British people, and we are incredibly grateful—but the report sets out clear and wide-ranging recommendations that we must study closely, and we will work urgently with our health services to ensure that nothing like this will ever happen again.
Oral Answers to Questions
Sajid Javid Excerpts(1 year, 3 months ago)
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Sajid Javid (Bromsgrove) (Con)
The Prime Minister (Rishi Sunak)
The ban on LGBT people serving in our military until the year 2000 was an appalling failure of the British state—it was decades behind the law of this land. As today’s report makes clear, in that period many endured the most horrific sexual abuse and violence, homophobic bullying and harassment, all while bravely serving this country. Today, on behalf of the British state, I apologise, and I hope that all those affected will be able to feel proud parts of the veteran community, which has done so much to keep our country safe.
This morning I had meetings with ministerial colleagues and others. In addition to my duties in this House, I shall have further such meetings later today.
Sajid Javid
May I associate myself with the remarks the Prime Minister just made? In the UK, sadly, every 90 minutes someone takes their own life. Indeed, for men under the age of 50 and for women under the age of 35, this is now the biggest killer. When I was the Secretary of State for Health and Social Care, I met many brave families and campaigners, and I committed to them that the Government would publish a comprehensive, cross-departmental suicide prevention strategy. That was more than a year ago and still there is no strategy. I know that my right hon. Friend the Prime Minister cares as deeply about this issue as I do; we have discussed it many times. Will he please commit his Government to publishing the strategy within days of Parliament’s return from the summer recess?
The Prime Minister
When someone takes their own life, the effect on their family and friends is devastating. I know that the loss of my right hon. Friend’s own brother was an enormous source of pain for him. I want to reassure him that we are actively addressing suicide rates, through our national suicide prevention strategy, backed by funding, and, in particular, by rolling out 100 suicide prevention voluntary community and social enterprises. I can tell him that we will publish the new updated national suicide prevention strategy later this year.
Northern Ireland Protocol
Sajid Javid Excerpts(1 year, 8 months ago)
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The Prime Minister
I join the hon. Gentleman in supporting our farmers, whether in Northern Ireland or, indeed, in Yorkshire. Actually, the agreement we have reached on veterinary medicines lasts three years, until the end of 2025, which provides us with the time and space to agree a more permanent solution with the European Union. As today’s framework demonstrates, we are more than capable of doing that, as we have resolved all the other issues that were in front of us.
I also point the hon. Gentleman to the solution that we have reached on human medicines, which I think everyone will agree are vital, where we have achieved a form of dual regulation, which ensures the full availability of medicines across the entire United Kingdom, with the UK regulatory authorities being the ones in charge. I think that that is what he should look to, alongside all the other things we have solved today, to have confidence that between now and three years’ time, in 2025, we will put a permanent footing for vet medicines on the table.
Sajid Javid (Bromsgrove) (Con)
I warmly welcome my right hon. Friend’s statement and commend him and his entire team on what they have achieved. He seems to have won some jaw-dropping concessions from the EU without giving anything in return.
Does my right hon. Friend agree that alongside the benefits that this agreement will bring for the people of Northern Ireland, it can form the basis of further co-operation with our EU friends on issues that will matter to the entire United Kingdom, including trade and investment, science and illegal migration?
The Prime Minister
I thank my right hon. Friend for his support and also for his invaluable advice over the past few weeks. I agree with him. He is right to highlight illegal migration in particular, as well as economic co-operation. That is a priority for this Government, as we have demonstrated. The Home Secretary is working with the French and that co-operation is yielding benefits. We continue to want to do more of that, and I know that he will support those efforts.
Tributes to Her Late Majesty The Queen
Sajid Javid Excerpts(2 years, 1 month ago)
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Sajid Javid (Bromsgrove) (Con)
It is a pleasure to follow the hon. Member for Wallasey (Dame Angela Eagle). I am filled with great sadness as I rise to pay tribute to the life and memory of Her late Majesty Queen Elizabeth II. Our thoughts are with the royal family, who have lost a mother, a grandmother and a great-grandmother.
Her late Majesty lived an extraordinary life of service, and the touching tributes that we have heard from right hon. and hon. Members, along with the outpouring of emotion from across the world, including from my constituents in Bromsgrove district, reflect the deep affection and love for her. For more than seven decades, she was a source of strength and comfort, a representative of our closest-held values and beliefs, a defender of faith and an embodiment of the very best of public service and duty. She was our north star; a symbol of strength in difficult times. To put it simply, she was our Queen.
Many right hon. and hon. Members have shared stories of times when they were privileged to meet Her late Majesty. I did so on many occasions, and I always welcomed the huge wisdom that she would share, the advice and of course the good humour. I will never forget how, as the formalities of the final Privy Council meeting of 2017 ended, Her Majesty suddenly said, “Gin and tonic anybody?” She proceeded to press a buzzer and, with that, her staff promptly burst through the doors of the 1844 room in Buckingham Palace armed with trays of G and T and nibbles. Now, I am not much of a G and T drinker, but I was certainly not going to turn down the opportunity of enjoying one with Her late Majesty. I later learned that she liked to make the last Privy Council meeting of the year extra special so that she could wish everyone a merry Christmas.
Our country faces immense challenges at home and abroad, and the person who has always been there is there no longer. However, in the wake of this terrible loss, there is an opportunity for parliamentarians from across this House to renew their commitment to the values that were embodied by Her late Majesty: public service, duty and the national interest. If we can leave this place having achieved but the smallest fraction of what Her late Majesty achieved, our country will be the better for it. After a lifetime of service, Her late Majesty is now at rest. May she rest in peace, and God save the King.
Budget Resolutions and Economic Situation
Sajid Javid Excerpts(3 years, 8 months ago)
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Sajid Javid (Bromsgrove) (Con)
Over the course of the past year in countries not too dissimilar to our own, people have been asked to choose between protecting their livelihoods and protecting their lives. That has not been the case in our country, and for that we have my right hon. Friend the Chancellor to thank. He said, right at the very start of this pandemic, that he would do whatever it takes to protect jobs, to protect businesses and to protect public health, and he has delivered on every count, and this nation has rightly given him its gratitude.
Despite his success, the Chancellor will be in no mood for a victory lap. Comprehensive support, as he has said today, has come at unprecedented pressure on our public finances. To date, as we have heard, the Government have already spent more than £300 billion, every penny of that borrowed. While low interest rates have certainly helped, we cannot expect such a benign lending environment to last forever. With national debt already close to national output, as we have heard, just a 1% rise in gilts would mean an additional yearly cost in debt servicing of £25 billion by 2024. That is more than half of the annual defence budget. Indeed, we are already seeing rising pressure, especially because of rising global inflation expectations, so we cannot allow the inflation tiger to prowl unchecked.
The faster our economy can bounce back, the easier it will be to manage our debt in the future. Thankfully, I believe that our prospects for a sharp, strong recovery look very promising. Thanks to the Government support, the vast majority of businesses are ready for the shutters of the economy to be lifted. The Bank of England has shored up confidence with monetary easing. Households are sitting on some £100 billion of excess savings and, unlike in wartime recessions, there has been no physical destruction of capital. Above all, the Government are delivering on their vaccination programme—a programme that is the envy of Europe and that will lead this continent out of the lockdown. For these reasons, I am very optimistic about the recovery, and I think it will happen rapidly.
Andrew Griffith (Arundel and South Downs) (Con)
My right hon. Friend was of course part of the legacy that has put us in a strong position to make the support packages of my right hon. Friend the Chancellor. Does he agree with me that small businesses are the absolute lifeblood of our recovery, and that my right hon. Friend the Chancellor has brought forward, in the Help to Grow package today, two really insightful schemes that will support the nation’s smallest businesses?
Sajid Javid
I thank my hon. Friend for his comments, and I very much agree with that. I think there are actually more than two schemes, if we are honest. There are a number of schemes that will help businesses, not least the speed and the scale of the recovery that I have talked of. I especially welcome those measures, but also the super deduction and the support through grants for businesses.
In the medium term, we will put our country back on to a firmer financial footing by tackling some of the systemic issues that were around long before this pandemic hit, such as low productivity and regional inequality. That is why I also welcome the Chancellor’s emphasis on infrastructure investment. Not only will this provide an immediate increase in economic activity, but it will drive long-term productivity improvements and will make sure that growth is even better distributed across the entire United Kingdom.
However, I would urge the Chancellor not to take his eye off delivery. Successive Governments have had a poor history of delivering infrastructure projects on time and on budget. I therefore hope my right hon. Friend will consider complementing his very welcome changes to the Green Book and the new national infrastructure investment bank with a comprehensive cross-government delivery strategy.
While grants and support schemes have been consumed by our generation, they will be paid for by the next. That is why the Chancellor was absolutely right to level with the British people and to set out so candidly the pressure on the nation’s finances. While slamming the brakes on spending now would be self-defeating, the Government should be drawing up medium to long-term plans to manage debt. That is why I welcome many of the initiatives the Chancellor set out today, including his commitment to try to avoid borrowing for day-to-day spending. That commitment starts with new fiscal rules. The Chancellor should ensure that those rules are in place by year end, ideally alongside the next Budget and the comprehensive spending review. Having run four spending Departments and the Treasury, I am left in no doubt that a fiscal anchor is essential to control spending and to control debt.
Lastly, in the long term, putting the country back on a firm financial footing means that we need to build resilience against future disasters, as the Chancellor recognised in his Budget speech. Of course, not every disaster is a black swan and it would be foolish to prepare for crises we cannot foresee while we ignore those that we can. In terms of their potential impact on the future economy, few crises are more existential than climate change and declining biodiversity. That is why, as Chancellor, I set Professor Dasgupta very ambitious terms for his independent review on the economics of biodiversity. It makes clear that biodiversity is declining faster than at any other time in human history. If we continue to undermine the resilience of the natural world, we will introduce new sources of serious financial uncertainty, not least the increased spread of infectious diseases. While of course it will take time for the Treasury to digest Professor Dasgupta’s review, the Treasury should make a start on one of his most central recommendations: the need to recognise the value of the natural world in our national accounts. I urge the Chancellor to formally ask the UK Statistics Authority to review how that might be done. The Office for National Statistics is one of the most widely respected economic institutions in the world. If it can lead by example, it can make such a difference in trying to persuade other countries and financial institutions to do the same. We can lead on this, not least because of our chairmanship of the G7 and the COP26 conference this year.
This has been a long hard winter and we have all been hibernating for many months, but, as case rates fall and the vaccination programme continues at pace, the frost has begun to thaw and we are beginning to see the first signs of spring. The Government have been given a precious opportunity not just to resurrect our economy but to reinvigorate our entire country. I am in no doubt that the Chancellor will rise to the occasion with the energy that this moment requires and the sense of purpose that history demands. I am pleased to say that his Budget is the first step to doing just that.
Jeremy Corbyn (Islington North) (Ind) [V]
I am delighted to be able to speak in this Budget debate, but sadly this Budget does not reflect the reality of people’s lives. Just this morning I have come from a local food bank where people were queuing up to try to get enough food to get by. They are people who thought they would always be okay and have enough money to live on, but they do not and they therefore rely on food banks. To the tens of thousands of people who have volunteered in mutual aid groups all over the country, I think we should say a huge thank you. They have contributed, in a way that the Government have not, to the lives of so many people who would be in such great difficulty if those food banks were not there.
The Chancellor talks about extending the furlough scheme and protecting people on those wages. I point out to him that the scheme includes no floor and that 80% of minimum wage is a lot less than the money people need to live on. It was my right hon. Friend the Member for Hayes and Harlington (John McDonnell) who proposed a year ago that we should have a furlough scheme. He sent substantial papers to the Treasury in order to bring that about. Sadly, I do not believe that the Chancellor read all of them.
The scheme proposed by my right hon. Friend would have guaranteed everybody’s income and jobs, it would have had a floor, and it would have gone on to protect people’s conditions and wages, as well as those of people in all aspects of self-employment, including in the artistic sector. There are many people in work at the moment who are being threatened with fire and rehire, and there are companies trying to dismiss the whole workforce and rehire them on lower wages and with worse working conditions. British Gas and British Airways tried it on, and so many other companies are trying to do the same thing. Where is the protection for people’s living standards and jobs in this Budget? Sadly, it is desperately missing.
On public sector pay, many are going to be hit by the pay freeze and by a stealth income tax rise through the freezing of the tax allowance. I remind the Chancellor that a previous Government—a Labour Government in the 1970s—came a cropper on that one when the Rooker-Wise amendment was passed to prevent the Chancellor from the freezing the tax-free allowance.
Millions of public sector workers have contributed so much to dealing with the covid pandemic. Those working in our national health service, our care services and our local government have made super-human efforts to try to help people get through a desperate time, helping people through the mental health crisis and so much else. Their reward is going to be frozen pay and, for those working in local government, a continued underfunding of local government services.
For pretty well everyone across the country, there will be a 5% rise in council tax, as local councils desperately try to balance the books and deal with the increased demands on their services because of the covid pandemic. I hope that the Chancellor will recognise that we need a proper funding formula for local services across the country, and not just claps for the NHS, the care service and delivery workers, but actual pay increases to recognise the massive contribution that they are making to our society.
The Budget said a great deal about corporation tax and other business taxes, but it did not say very much about tax evasion or tax avoidance. From the Government’s statements, they propose to raise around £2.2 billion between now and 2025—in the next four years—from tax avoidance and tax evasion, yet the real figure is that something over £30 billion a year is lost to our public services through tax avoidance and tax evasion. If the Government were serious, they would have included measures in the Budget to deal with tax avoidance and tax evasion.
I hope, by contrast, that the Government will recognise that not increasing statutory sick pay while at the same time doing nothing about tax evasion and tax avoidance says it all about Tory priorities. Statutory sick pay is £95 per week. The Secretary of State for Health and Social Care himself said he could not live on that; I do not think that any Member would want to try to live on that, so why are we expecting anybody else in our society to do so? It has to be increased, and we need a guarantee of at least the £20 rise in universal credit, which at the moment is still a temporary measure.
The Chancellor had obviously read quite a lot of the proposals made by my right hon. Friend the Member for Hayes and Harlington before the last election, in which he pointed out that he wanted to move jobs to the north and ensure that the increase in public spending that we were proposing would help people across the north. The Chancellor made a big deal of about 750 jobs going to Darlington. Sadly, all that is cancelled out by the huge number of job losses in transport authorities across the north of England, particularly in Greater Manchester and Merseyside City Region. That is because the Government have not provided them with the funding package to support transport systems that they have in London and other places. This degree of unfairness between the north and the south will continue, and the degree of unfairness between the richest and poorest in our society will increase under this Budget.
Towards the end of his speech, the Chancellor managed to provide a great deal of greenwash for his proposals. Of course, we all support a green industrial revolution. It was central to Labour’s manifesto at the last election, but where is the commitment to net zero emissions by 2030? Where is the commitment on protection of biodiversity to protect us all for the future? This Budget is such a lost opportunity. At the end of it, our society will be more divided than it is at the present time, there will be greater stress and uncertainty in so many people’s lives because of this Budget. We can, should and must do much better than this.
Sajid Javid
On a point of order, Madam Deputy Speaker. At the start of my contribution, I should have reminded the House of my entries in the Register of Members’ Financial Interests. I hope that I can put that on the record now.
Oral Answers to Questions
Sajid Javid Excerpts(3 years, 8 months ago)
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The Prime Minister
I want to congratulate the great Conservative-controlled council of Bolton on everything that it is doing and continuing to do throughout this pandemic to look after the people of Bolton. I know what incredible work the local officials do, and I thank them very much for it. Since we believe so strongly in local government, as a creature of local government myself, I am proud that we have invested £4.6 billion in supporting local government just so far in this pandemic.
Sajid Javid (Bromsgrove) (Con)
The Prime Minister
My right hon. Friend is absolutely right, and I thank him for what he is doing in this area. I want the House to know that we want the UN COP26 summit to be a landmark event, not just for tackling climate change but for biodiversity. I think it is high time that the leaders of the world took a step to reverse the loss of habitats and species that we have seen over the last century.
Oral Answers to Questions
Sajid Javid Excerpts(4 years ago)
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The Prime Minister
The hon. Gentleman is entirely right, in the sense that, although the absolute numbers have not gone up in the way we feared, we are unquestionably seeing repeat victimisation in domestic contexts. It is intolerable. As the House knows, we have set up helplines to tackle it, and we are investing in refuges and independent domestic violence advisers. It is absolutely crucial that we tackle the scourge of domestic abuse and also deal with the mental health consequences for the victims. That is why we are investing massively in mental health and mental health charities.
Sajid Javid (Bromsgrove) (Con)
An independent study published recently suggests that the writing ability of year 7 pupils is some 22 months behind expectations. My right hon. Friend will know that it is the life chances of the most disadvantaged that are hit hardest when schools close. We have rightly said that those children are an absolute priority for this Government. Will my right hon. Friend the Prime Minister give an assurance that, first, we will do whatever it takes to make up for lost ground and, secondly, we will never again contemplate closing our schools?
The Prime Minister
I thank my right hon. Friend. He is completely right about the paramount importance of keeping our schools open. Out of this crisis has come at least one potentially innovative idea that can really help exactly the types of pupils he is talking about: one-on-one tutoring of the kind that we have been able to support with our catch-up premiums and our national tutoring programme. As we come out of this pandemic, I want to see us keeping up with one-on-one tutoring because I believe it can make a huge difference to children’s confidence and academic attainment.
Global Britain
Sajid Javid Excerpts(4 years, 4 months ago)
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The Prime Minister
Yes, of course, I can give my right hon. Friend that assurance. Northern Ireland will play a full part not just in these arrangements but, as he fought for, in all the free trade deals that we do.
Sajid Javid (Bromsgrove) (Con)
I welcome my right hon. Friend’s statement and his commitment to our continued effort in terms of international aid. As he may know, just last week the World Bank reported that some 100 million people could be driven into extreme poverty because of the covid-19 crisis. Many developing countries’ economies are already being hit hard, with falling remittances and falling investment. I know that many are also concerned about increasing talk of protectionism in advanced economies, including by some people in this country. Will he take this opportunity to commit Britain to fighting protectionism in all its forms, because trade is as important as aid?
The Prime Minister
Absolutely. My right hon. Friend makes a profoundly important point. There is a risk that some countries may seek to return to protectionism—to an autarkic, beggar-my-neighbour approach. That is not the way of the United Kingdom. Of course, we want to build up our own manufacturing capabilities, to make sure that we have the resilience in our economy when crises hit, but we also depend wholly on free and fair trade, and that is what we will fight for.
Budget Resolutions
Sajid Javid Excerpts(4 years, 7 months ago)
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Sajid Javid (Bromsgrove) (Con)
It is a pleasure to follow the hon. Member for Liverpool, Riverside (Kim Johnson). I congratulate her on her maiden speech. I cannot say I agree with everything she said, but we do have something in common as the children of working-class migrants. I very much welcome her to the House.
I want to begin by warmly congratulating my right hon. Friend the Chancellor on his first Budget. He had only four weeks to write this Budget, and he has risen to the challenge. Although I do recognise much of it, it is different in one significant respect—there has been a dramatic change, as he set out, in the global economy. This means that we must of course face these challenges as a nation. Therefore, he has been absolutely right to focus his attention on the threat posed by coronavirus, so before I turn to a few other measures in the Budget, let me say a few words about that. First, on the economic context, back in October, the IMF downgraded global economic growth forecasts, including, of course, those for the UK. The UK also faces a trio of other structural changes over the coming years: our new trading relationship with our European friends, a new immigration system, and the transition to carbon neutrality by 2050. All three of those are absolutely the right things to do, but they will mean adjustments for business.
Now we have a new challenge to contend with. We must do all we reasonably can to delay the spread of coronavirus and to care for the sick, so my right hon. Friend has been absolutely right today to pledge that every resource necessary will be made available for the NHS, for the DWP and for local authorities. While our No. 1 priority must of course be public health, we are facing the most severe threat to our economy since the global financial crisis. As the Chancellor said, it is first and foremost a supply-side challenge, but it is also a demand-side problem. We must also get on to the front foot to support the financially vulnerable, who will be as fearful for their economic security as they are for their health. Likewise, a number of otherwise viable companies may be unable to withstand the downturn, so while I welcome the actions that my right hon. Friend has set out today, he must stand ready to do more as the situation demands, and not necessarily wait for the comprehensive spending review or the next Budget.
John Redwood
There is a £6.6 billion saving this year on interest on Government debt anyway, but of course there has been another major collapse of interest rates since those figures were put together, so there is something on the other side of the account. I would therefore urge my right hon. Friend indeed to say that we need to spend what it takes.
Sajid Javid
My right hon. Friend is, characteristically, absolutely right to make that observation. I think he will also agree that while this is welcome, and will, absolutely, cut the cost of interest, it also reminds us that interest rates are incredibly volatile, and no Government should rely on interest rates remaining low for an incredibly long time.
I have often said that small and medium-sized businesses are the beating heart of the economy, and rightly where our focus should be. If SMEs are the heart, then cash flow is their lifeblood, and that is where we must focus our help most, so I very much welcome the emergency support package for SMEs that my right hon. Friend the Chancellor set out today. If I may, I will make three quick observations about what more can be done. First, on time to pay, I strongly welcome the announcement today to extend the existing HMRC scheme. While it is absolutely right that we carry out the fundamental business rates review that we set out in our manifesto, this will not happen overnight, as the Chancellor recognised, so we need to act now. I do welcome the announcements on business rates that he made today, but may I also suggest that the time-to-pay arrangement is extended to business rates too? Although they are collected by local authorities, not HMRC, it is possible to delay collection while making sure that no local authority loses out in terms of cash flow.
Secondly, on support for workers, firms should not have to shed workers because of temporary cash-flow problems. That is why I would like to keep open the option of a temporary cut in employers’ national insurance —perhaps over a three-month period—thereby relieving the cost of labour.
Thirdly, since the financial crisis, it is true that monetary policy has lost some of its potency. A decade ago, central banks were the star turn; now they are more like the supporting act, but they can help. That is why I strongly welcome the action by the Bank of England that was announced this morning, and I am pleased to see the co-ordination that has taken place with the Treasury. I am particularly encouraged by the restart of the term funding scheme, especially how the incentives have been set out to encourage an increase in lending to SMEs.
While the coronavirus has captured the attention of the front pages, my right hon. Friend the Chancellor is right not to lose sight of the long-term failures of UK economic policy under successive Governments—failures that have caused profound regional inequalities and a sense of anger and betrayal in many of our communities. We need to put people and place back at the heart of a more human capitalism. I therefore welcome the investment in skills and education, especially the £1.5 billion for FE capital. We should think about not only the flow of students but the stock of skills that we have in our country. There are talented individuals who have left full-time education and would benefit from retraining. That is why I am unapologetically keen on a long-term plan for skills, including the right to retrain for all working adults.
It is clear from today’s Budget that my right hon. Friend shares my enthusiasm for the infrastructure revolution and my conviction that, with the right scale and the right mix of investment in roads, rail, digital, decarbonisation and flood defences, we can tackle our most significant economic challenges: low productivity and regional inequality. As I have long said, we should take advantage of record low interest rates to invest properly in our economic future.
I welcome the Chancellor’s indication that he will continue the work that was begun to rewrite the Green Book, so that we can better allocate investment across the nations. I hope that he will look carefully at what else we can do to help the infrastructure revolution, including looking at planning, especially reform of the compulsory purchase order regime; the infrastructure delivery model, so that we do not have a repeat of the overspending on HS2; and labour market requirements at a time of record employment.
I urge the Chancellor to consider in his next fiscal statement 100% capital allowances—in other words, full expensing for businesses, to encourage them to invest more in capital. I want to end by underlining the importance of fiscal responsibility.
Sir Desmond Swayne
As someone who longs for lower taxes and smaller government, what assessment has my right hon. Friend made of the Chancellor’s ability to remain within the existing fiscal rules?
Sajid Javid
I was pleased to hear the Chancellor say that this Budget is within the fiscal rules, but as my right hon. Friend the Member for Maidenhead (Mrs May) said, we do not yet know the impact of these emergency measures. We also do not know the impact of the term funding scheme announced today by the Bank of England. A lot of the fall in debt over the next few years is because of the term funding scheme coming to an end, but that might now change, so it is worth keeping that in mind.
The British economy is in a strong position to weather the current storm, but we must not forget that my right hon. Friend the Chancellor is only able to deploy the firepower that he has today because of the choices that consecutive Conservative Chancellors have made—choices to control spending, to control borrowing and to control debt. That is why the fiscal rules that we set out in our manifesto are important. Sticking to those rules in normal times is what separates us from Opposition parties. They help us to keep our economy strong and to keep taxes low, and they preserve our flexibility for when we need it most. It is not always possible to forecast when the next threat will emerge, nor what form it will take, but it is possible to prepare, and I know that the Chancellor and I are grateful that our predecessors had the foresight to do so.
Sajid Javid
I will not give way.
The British people have responded to the coronavirus crisis with stoicism and selflessness, as well as a distinct sense of humour—especially when it comes to toilet rolls. The British people are following the lead that has been set by right hon. Friends the Prime Minister and the Chancellor who, in the most challenging of circumstances, have resolved to act prudently on the basis of evidence and to act in the national interest. I have every faith that in the coming months they will do the right thing and that, whatever happens, as a country we will emerge stronger on the other side.
Madam Deputy Speaker (Dame Rosie Winterton)
It is a pleasure to call Sam Tarry to make his maiden speech.
Personal Statement
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Sajid Javid (Bromsgrove) (Con)
It has been eight years since I last stood to speak as a Back Bencher, and it is a privilege to do so again. When I left these Benches, it was to become a Minister in the Treasury, and it seems apt that I went back to whence I came: the circle of life. I am very proud to represent the good people of Bromsgrove, and I will of course continue to do so. I will also continue to champion the causes that I believe in most, albeit from outside the Government. I confess that I had hoped to have a little longer to make a difference from the inside, so—with thanks for your permission to make this statement, Mr Speaker—I thought it would be appropriate to briefly explain, first to the House, why I felt that I had to resign as Chancellor of the Exchequer. I would also like to take this opportunity to thank all colleagues in this Chamber and beyond for their messages of thanks in the last two weeks, and to thank my family for their love and patience over the last few years.
I came into politics to give something back to the country that has given me so much. While I do not intend this to be my last chapter in public life, whichever form that may take, I am immensely grateful for the trust and the support of colleagues in all the roles that I have had. After first holding two ministerial positions within the Treasury, and then returning as Chancellor, I have had the huge privilege of running four Departments. Each taught me more than the last, and it shaped my understanding of government. I can look back and say to myself, very sincerely, that I have never once made a decision—or, indeed, given advice on a decision—that I did not believe was in the national interest. You see, Britain’s democracy and economy are strong because of its institutions and its people. Conservatives especially believe that no particular person, or even a Government, has a monopoly on the best ideas. It is through these checks and balances of credible institutions—be it the Treasury, the Bank of England, the Office for Budget Responsibility, or, indeed, this House—that we arrive at sensible decisions that are in the national interest.
Now, when reflecting on the dynamic between No. 10 and No. 11, it is natural to look at past relationships. There is no one size that fits. Any model that works, or does not, depends on the personalities that are involved just as much as the processes. It depends on the mutual respect and trust that allows for constructive, creative tension between teams. It is that creative dynamic that means that it has always been the case that advisers advise, Ministers decide, and Ministers decide on their advisers. I could not see why the Treasury, with the vital role that it plays, should be the exception to that. A Chancellor, like all Cabinet Ministers, has to be able to give candid advice to a Prime Minister so that he is speaking truth to power. I believe that the arrangement proposed would significantly inhibit that, and it would not have been in the national interest. So while I was grateful for the continued trust of the Prime Minister in wanting to reappoint me, I am afraid that these were conditions that I could not accept in good conscience. I do not intend to dwell further on all the details and personalities—[Interruption]—the Cummings and goings, if you will. [Laughter.] Much of this commentary was just gossip and distraction, and now it is in the past.
I very much hope that the new Chancellor will be given the space to do his job without fear or favour. I know this: that my right hon. Friend the Member for Richmond (Yorks) (Rishi Sunak) is more than capable of rising to the challenge. He worked for me as a Local Government Minister and as Chief Secretary, and I could not have asked for a better working relationship. Indeed, I had lobbied the PM for him to be given the role as Chief Secretary, and to keep it at the recent reshuffle—but I did not get my way on that one!
My right hon. Friend the Prime Minister has won a huge mandate to transform our country, and already he is off to a great start: ending the parliamentary paralysis, defeating the radical left, getting Brexit done, a points-based immigration system, and an infrastructure revolution. Now our party—our Government—has a huge opportunity and responsibility ahead. We need a resolute focus on long-term outcomes and delivery, not short-term headlines. The Treasury as an institution—as an economic Ministry—should be the engine that drives this new agenda. Since last summer, it has done just that, from planning properly for Brexit, to bringing in a generational step-change in infrastructure investment; from rewriting the Green Book to better favour our regions, to long-term thinking on human capital and designing the blueprint for levelling up across our country. I am incredibly proud of the scale and speed of the work that has already been done.
But the Treasury must also be allowed to play its role as a finance Ministry, with the strength and credibility that it requires. I am a proud, low-tax Conservative, and I always will be. Already, our tax burden is the highest it has been in 50 years. It is fair to say that not everyone at the centre of Government always feels the pressure to balance the books—it was ever thus. But the Treasury has a job to do. It is the only tax-cutting Ministry. Every other Department has an in-built incentive to seek and spend ever more money—not that I did that when I ran Departments, of course. I see that my right hon. Friend the Member for Maidenhead (Mrs May) is agreeing with that. But trade-offs have to be made somewhere.
At a time when we need to do much more to level up across generations, it would not be right to pass the bill for our day-to-day consumption to our children and grandchildren. Unlike the US, we do not have the fiscal flexibility that comes with a reserve currency. That is why the fiscal rules that we are elected on are critical. To govern is to choose, and these rules crystallise the choices that are required to keep spending under control, to keep taxes low, to root out waste and to pass the litmus test that was rightly set in stone in our manifesto of debt being lower at the end of the Parliament.
While I am of course disappointed not to be finishing what I started, I look to the future not with apprehension but with great optimism. We on the Government Benches have a shot at achieving nothing less than wholesale renewal for our economy, our society and our country—a chance to give everyone an opportunity to live up to their full potential, wherever they live and whatever their background; to put people, place and social justice at the heart of a more human capitalism; and to bring our country together as one nation. I know that this is a shared vision, and I firmly believe that my right hon. Friend the Prime Minister has the tenacity, the energy and the skill to see it through. I want to leave the House in no doubt that he has my full confidence, and the Government my full support, to get it done.
The Prime Minister (Boris Johnson)
On a point of order, Mr Speaker. Would it be in order for me to thank my right hon. Friend for the grace with which he has just spoken and his immense service to this country in several Departments, and to remind him that he has friends and admirers on all sides of the House of Commons?