Finances of the House of Commons

Tom Brake Excerpts

Tuesday 11th November 2014 Commons Chamber

[The Deputy Leader of the House of Commons (Tom Brake)]

This debate has been slightly more entertaining that I had expected. I thought that, like a financial report, it was going to be quite dry, but we have had some entertaining illustrations of the activities that the different Committees are undertaking to realise savings.

I welcome the opportunity to participate in what has now become an annual debate on the House of Commons’ financial plan and draft estimates. In doing so, I should first mention my right hon. Friend the Member for Caithness, Sutherland and Easter Ross (John Thurso). At the risk of making him blush under his beard, I join the tributes that have been paid to him and his Committee for the work that they do in scrutinising the financial management of the House and in advising the House of Commons Commission, which is ultimately responsible for running the House.

Like other Members, I wish to pay tribute to the staff of the House, who support the Committee, the Commission and the Members in the activities that they undertake. I also thank my right hon. Friend the Member for Saffron Walden (Sir Alan Haselhurst) for the role that he plays. He quite rightly pointed out that the finances of this place are not always as they seem, or at least as the press would like to present them. He reflected on the fact that there was a time when the gift shop here was little more than a duty free, selling only whiskey and cigarettes. As someone who has been running a Christmas card competition for reception, year 1, year 2 and year 3 students for the past 17 years, I am pleased that there are now more gifts on offer, as whiskey and cigarettes are clearly not appropriate prizes.

My right hon. Friend also referred to the availability of tiles in the gift shop. I am currently decorating my bathroom at home, so I wish that I had known that earlier—although at £150 a shot, I suspect that we would have had to stick to IKEA as we had originally intended. He quite rightly pointed out—many Members will have seen this—that the House is being used for the first time for the filming of “Suffragette”. He also referred to the fact that the House is a highly rated tourist attraction. I regret to say that he did not mention that our debates in this place are part of that attraction. Perhaps this debate is one that people who have been to visit today will remember for years to come.

[Sir Alan Haselhurst]

I hope that my right hon. Friend is not egging us on to think of charging people for going into the Public Gallery.

[Tom Brake]

I will leave that to my right hon. Friend the Member for Caithness, Sutherland and Easter Ross to address. Perhaps he will have had some thoughts on that.

Let me finish my comments on the contribution from my right hon. Friend the Member for Saffron Walden. I certainly agree that our investment in this place needs not only to reflect its heritage status but to ensure that the Palace of Westminster is both accessible and visitor friendly in a way that it is not at the moment.

I wish to comment briefly on the comments made by the hon. Member for Dunfermline and West Fife (Thomas Docherty). I congratulate him on his triple-hatted role. I am familiar with the concept of wearing more than one hat. He highlighted the savings we have made from ending the production of leather-bound books of Hansard. That was an appropriate thing to do, especially as it was at the taxpayers’ expense.

On the reconstruction and renovation works that will be undertaken fairly soon, the hon. Gentleman is right that planning them appropriately is essential. I do not like to think of myself as a professional politician, although I am not sure at what point one becomes one and leaves behind one’s previous career. Before being elected to this place, I was a project manager in the IT industry. One thing that must be done before embarking on a project is to work out what one wants to achieve and get from it. Members asked whether our plans for the House included a TV studio. Clearly, we need to establish that well in advance of any renovation work, rather than considering it as an afterthought, as the costs would start to ramp up significantly.

The hon. Gentleman also referred to the importance of diversity in staff, with which I entirely agree. He said that the House of Commons and the House of Lords should be actively considering bicameral services. It would be strange if we as a Government and Opposition called on local authorities to integrate their services to cut down costs if it were not something that we were prepared to consider in this place. I join him in praising the education centre.

The hon. Gentleman referred to the importance of senior managers getting the appropriate training, which I support. He concluded by referring to the e-petition system. I concur with his view that that is something that should not come at substantial extra cost. There may be a slight additional cost, as that inevitably happens in a transition period, but, fundamentally, we already have in place the technology and that should be the basis of the system. Any additional costs should be very limited. If, as part of the system, a petitions Committee is set up, it should not be an additional Committee but an alternative to one of the existing Committees in the House. I will not speculate on which, but that may be an appropriate way of dealing with any additional costs that might derive from having a petitions Committee.

It is right to recall the achievements of the House management in successfully delivering the savings programme, which saw a reduction in the administration estimate of 17% from £231 million in 2010-11 to £210 million in 2014-15. That reduction is in line with those that have been made right across Whitehall. Although that reduction has inevitably led to some changes, we have not seen any significant diminution in the services and support provided to Members of the House.

I welcome the fact that, although the saving programme has now come to an end, there is no sense of the job being done and now we can get back to normal. That would not reflect the reality of the financial situation, the need for further deficit reduction and the financial discipline in the wider public sector. The Committee’s report outlines the establishment of a continuous improvement approach being promoted by the Cabinet Office to ensure that the House continues to achieve value for money in the services it provides. I also welcome the bicameral nature of that approach. The potential for achieving savings by the two Houses working together should be fully explored.

The Committee notes improvements in financial discipline and internal control. Further improvements in financial performance will require a sharpening of managerial leadership skills right across the House. That is an area on which attention is rightly being paid, and it is a factor that might play into the current review of the governance of the House. I would also like to apologise on behalf of the Leader of the House for his being unable to attend this debate, which is for the same reason that the shadow Leader of the House is not here.

The House will also want to note the potential, outlined in the report, for further savings or income generation. The ICT strategy has not delivered the anticipated savings in 2014-15, and the expansion of commercial activities has not progressed at the pace originally envisaged. Those matters are being taken forward.

The House will also want to note the increase in resources that the Committee has agreed in respect of the budget for Select Committees, following a bid by the Liaison Committee. The extra £854,000 per annum from 2015-16 will enable Committees to have more staff and to commission more research. I think that is a good example of the core functions of the House being enhanced in a climate of overall savings being pursued.

With regard to the medium-term financial plan, we should be conscious of the need identified by the plan for a further £3 million to be found in each financial year from 2016-17 to 2018-19 and that there are major refurbishments in Norman Shaw North to be carried out. Beyond that, there are still decisions to be taken on the restoration and renewal of the Palace of Westminster, which will involve substantial expenditure however it is carried out.

Finally, turning to the Members estimate, hon. Members will note that the forecast expenditure is set to come down slightly, from £41 million in 2015-16 to £40 million in 2018-19, after the substantial exercise of providing new IT equipment for all MPs after the next election. The successful provision of IT and other resources for new MPs will go a long way towards giving them confidence in the management and governance of the House.

I conclude by again congratulating my right hon. Friend the Member for Caithness, Sutherland and Easter Ross on his Committee’s work, as set out in its report, and on the constructive way in which it continues to support the work of the Commission and the other administrative Committees of the House.