(6 months, 2 weeks ago)
Commons ChamberIn Fareham, we are rightly proud of our world-class aircraft carriers docked in nearby Portsmouth, providing thousands of jobs and being a huge credit to our Royal Navy. However, we all know that neither the Queen Elizabeth nor the Prince of Wales has as many jets, small warships or submarines as originally planned. Will the Minister please tell me how further defence spending will be used to bring online the full complement of F-35 jets, for example, so that our carrier strike group has the full capability to meet the modern threats of today?
My right hon. and learned Friend asks an excellent question. She is right about the importance of the carrier strike group. On the key point about the F-35s, we have confirmed 48 aircraft by 2025 and a further 27 by 2033, but in addition to that it is about working with our allies so that our carriers are at the heart of NATO operations, and ensuring that we have the maintenance and crews in place. As we saw recently, when we needed to get the second ship active, she was ready in eight days. That was a phenomenal achievement. It shows how effective we are at getting our carriers in place when we need them.
(9 years, 2 months ago)
Commons ChamberThere is no doubt that this measure is controversial and that it will hurt our constituents. It is a tough measure, but I nevertheless support it strongly because of the wider picture. This country must take the journey from being an economy of high welfare spending, high welfare dependency and high borrowing to being a more competitive country with higher productivity and, most importantly, higher real wages at every level of the economy. That, in turn, will put us on the path to more sustainable prosperity and sound public finances.
I have spoken on tax credits before in the House. I said on Second Reading of the Welfare Reform and Work Bill that they were one of the greatest mistakes in the history of the welfare state. When the Beveridge report made its recommendations, which led to the welfare state, the third key principle was that state benefits
“should not stifle incentive, opportunity, responsibility”.
My biggest problem with tax credits is that it is overwhelmingly clear that they stifle incentive and opportunity.
I agree with my hon. Friend. Tax credits have distorted the principle of welfare, which was to help the most vulnerable in our society who are unable to work. We now have a distorted system of in-work welfare where the state is subsidising wages. It is unsustainable.
I strongly agree with my hon. Friend. My point about work incentives is based on my experience as a small business owner. I found the situation with tax credits extraordinary. I had members of staff who declined pay rises because they would lose so much from their tax credits, and most common of all were part-time staff who would not go full time because the tax credits were so generous.