House of Commons
Monday 27 November 2017
The House met at half-past Two o’clock
[Mr Speaker in the Chair]
I should like to make a short statement following the announcement from Clarence House today of the engagement of Prince Harry to Meghan Markle. I am sure that Members from both sides of the House will join me in congratulating the couple on this most happy occasion and wishing them all the very best for their future together.
Oral Answers to Questions
The Secretary of State was asked—
NATO North Atlantic Command
May I start by congratulating, on behalf of those who work in our armed forces, His Royal Highness Prince Harry on his engagement to Meghan Markle? Prince Harry has acted as a proud champion of servicemen and women in the armed forces, most notably with his commitment to the Invictus games. I am sure we would all like to echo your words, Mr Speaker, in wishing the two of them the very best in their shared future together.
During my first few weeks as Secretary of State for Defence, I have had the privilege of being able to join the Army on Salisbury plain, the RAF in Cosford and the Navy in Devonport. It is truly moving to see the dedication and commitment they all show in their work. On 8 and 9 November, I had the opportunity to join fellow NATO Defence Ministers to discuss the future NATO command. This is about creating a new structure to lead NATO, but the establishment of a command for the Atlantic and its location have yet to be decided.
I thank the Secretary of State for that answer, but with Russian submarine activity in Scottish waters at a level not seen since the cold war—just last week, the Russian destroyer the Vice-Admiral Kulakov was escorted through the Moray firth—how can the Secretary of State reassure Scots that, when the command is re-established, it will meet the needs of Scotland, which sits in a vital strategic position with respect to the High North?
The hon. Gentleman makes an important point about the increased activity of Russian submarines in the north Atlantic. I am sure he would welcome the investment that the UK Government are putting into Her Majesty’s naval base at Clyde. Some £1.5 billion is being spent on investing in Scotland and 6,500 personnel are already based at Her Majesty’s naval base at Clyde, and that number is going to increase. NATO and what we do in terms of NATO are vital. It is the cornerstone of our defence. The hon. Gentleman must understand, though, that it is about not only conventional warfare and conventional deterrents but a nuclear deterrent. If we do not recognise the fact that nuclear weapons have been safeguarding our security, then we do not understand what NATO is. I very much hope that the hon. Gentleman will start to welcome our investment in not only conventional submarines in Scotland but nuclear submarines.
Does the Secretary of State agree that, when global threats to British interests around the world are increasing, it might seem illogical to have a defence capability review that could decrease our capabilities at a time when we need to be doing everything we can to increase our armed forces’ fighting power?
My hon. Friend makes a valuable point about making sure we have the right capability for all our armed forces. I am taking the opportunity to look at all the work that has been done and I am making my own judgment as to the best way to go forward.
I, too, extend warm wishes to the happy couple. My mother has already asked me whether she can join me in London on the day of the royal wedding.
I pay tribute to the Royal Navy assets, including HMS Protector, that have taken part in the search for ARA San Juan. Let us move from the south to the north Atlantic. I welcome the Secretary of State on his first appearance at the Dispatch Box. We do, of course, have differences, but where we can agree in Scotland’s interest, we will hopefully do so. With that and the re-establishment of NATO command in mind, does he agree that Scotland is ideally placed to host such a command?
I have no doubt that many places in the United Kingdom would be brilliant places to host such a command. I will be making strong representations to all our NATO partners to make sure that we get the very best deal out of NATO. At the moment, it is too early to determine where that command is going to be, but I will be doing everything I can to ensure that it is in the United Kingdom.
I understand that that matter will be discussed in February next year, so let me just point out to the Secretary of State what Scotland has to offer. It is the most northerly nation not to have any territory inside the Arctic circle; it is in a strategic position, jutting out into NATO’s north Atlantic heartland with access to the Icelandic gap; and it has Kinloss and Lossiemouth with unparalleled history in maritime aviation. Given what my hon. Friend the Member for Paisley and Renfrewshire North (Gavin Newlands) has also said, will the Secretary of State commit to further investigating the strong position that Scotland is in and taking that to NATO in February?
I am always delighted to explore the many benefits that Scotland brings to our Union. The fact is that Scotland is always stronger as part of the United Kingdom than it is on its own. I also very much welcome our continued investment in Scotland. It is absolutely integral to our defence as a nation that we are always stronger together. I would be happy to look at all the evidence to make sure that we continue to get the very best investment in Scotland from our armed forces.
I have regular meetings with the Chancellor. As yet, I have not had a formal meeting with him, but I am very much looking forward to doing so to discuss our shared future.
In a recent letter to the Defence Secretary, 25 of his Conservative colleagues said:
“We look forward to rhetoric being matched in deeds over the coming months.”
Will the Secretary of State listen to colleagues from all parts of the House and match the Government’s rhetoric with increased resources for our armed services?
What we have in our national security and capability review is the opportunity to step back, look at the threats and challenges that face this country, whether it is from cyber or from more conventional threats, and make sure that we have the right resources in place to deliver for our armed forces. That is what I will be looking at. I am looking forward to meeting the Chancellor as well as many others and having those discussions going forward.
I warmly congratulate my right hon. Friend on taking up office in this vital position. When he speaks to the Chancellor, will he take the opportunity of reminding him that, in the cold war years, we spent 5% of GDP on defence and that now we spend barely 2% of GDP on defence? Perhaps a target nearer to 3% of GDP on defence might prevent our armed forces from being further hollowed out.
I will always listen intensely and very carefully to the arguments of my right hon. Friend. I have always seen 2% as a base as opposed to a ceiling, and I will certainly take on board his thoughts and comments in discussions going forward.
I welcome the right hon. Gentleman to his new post and to the world of defence. The National Audit Office report earlier this year highlighted the fact that the Government have committed £24.4 billion to extra equipment, but only another £6.4 billion was actually there in new money for the joint strike fighter. How will he fill that £18 billion black hole in the budget on the basis that both the efficiencies and the headroom identified by the NAO have not yet been met?
We have an unparalleled commitment from this Government to continue to increase defence spending on equipment—0.5% above inflation every single year. I will be very happy to look at all the issues in the National Audit Office report and make sure that, working with our industrial partners, we deliver very best value for our armed forces.
I welcome my right hon. Friend, my constituency neighbour to his place. Training is key to ensuring that our armed forces are operationally ready should they need to be mobilised. Will my right hon. Friend outline what measures are being taken to ensure that training is well funded?
We have often been criticised for having the most poorly equipped armed forces, but the best trained armed forces. In my tenure as Secretary of State, I want to ensure that we have armed forces that have the best equipment and the best training. I have spoken to ministerial colleagues from Norway and other countries across Europe, and they all recognise our commitment to training. We will continue to invest in that, including in what the Royal Marines do in Norway every single winter.
I welcome the Secretary of State to his place, and echo his good wishes—and yours, Mr Speaker—to His Royal Highness Prince Harry and Meghan on their engagement.
Security cannot be done on the cheap. With expert after expert highlighting serious gaps in defence funding, it was surreal last week to hear the permanent secretary say that the man in charge had made no formal pre-Budget requests to the Chancellor for more money. It is one thing to ask and not get, but another not even to bother asking. Did I hear correctly today? Will the Secretary of State confirm that he actually did not make any representations to the Chancellor before the Budget?
We have to ensure that we understand the needs of our defence and armed forces. The hon. Lady may wish to rush into things, and to demand and demand, but I want to ensure that we have the arguments ready, we understand the threats that this country faces and we deliver for our armed forces. That is what the focus will be. I have had many conversations with the Chancellor, and I look forward to having many more.
I think I will take that as a no. This is serious; we hear that the Marines may be cut by 15% and the Army reduced to 70,000. That would seriously put our international credibility at risk. With the Secretary of State’s Back Benchers in open rebellion and one of his Ministers threatening to quit over cuts, just how bad do things have to get before the Secretary of State does his job, stands up for defence, and tells the Prime Minister and the Chancellor that enough is enough?
I will take many lectures from many people, but it is a little bit rich to be lectured about defence spending by the party that is led by a man who does not even believe in the British Army or a continuous at-sea nuclear deterrent. The Conservative party is the party that is ensuring that we deliver on 2% and that we increase defence spending. Frankly, I find it shocking to be lectured by the party that is led by a man who does not even believe in the British Army.
Cadet Units: State Schools
I am pleased to see that cadets are so popular in the Chamber today.
In 2015, the Government committed £50 million to increasing the number of cadet units in state schools through the cadet expansion programme. The programme targets schools in less affluent areas and is on track to achieve its target of 500 cadet units by 2020.
The sea cadet corps in Henley has provided the youngest of my daughters with enormous opportunities for personal development. Does the Minister agree that it is important to support cadet units in state schools, particularly with things such as uniforms?
I am happy to agree with my hon. Friend. He is right that cadet units provide life skills, employability and social mobility—things that schools do not necessarily offer themselves. I also pay tribute to the work of the cadets who participated in Remembrance Sunday up and down the country.
Last week, I was able to see Scunthorpe’s 119 Squadron, which meets outside the school day, but does fantastic work developing young people. The young people and the volunteers are a real tribute to us all. What are the Government doing to ensure that cadet groups—Army, Navy and sea—continue to play an important role in our communities?
I congratulate the hon. Gentleman on visiting his local cadet unit, and I encourage other hon. Members across the House to support our cadet programmes when they are in their constituencies. I mentioned the cadet expansion programme; there are 126,000 cadets supporting by 28,000 volunteers, and we are very grateful to them.
I also pay tribute to my right hon. Friend’s work on understanding the challenges we face with recruitment and retention. My hon. Friend is absolutely right to say that, as a starting point, the cadet programme is important to encourage and open up opportunities in the armed forces. Some 20% of those who sign up for the cadets go on to become members of our armed forces, and the other 80% have an affinity and an understanding for them, and a desire to support them, which is also welcome.[Official Report, 5 December 2017, Vol. 632, c. 6MC.]
The combined cadet force at Treorchy Comprehensive has been going for 10 years now, and it has done a brilliant job. Lots of young people have been given skills and opportunities they would never otherwise have had, and the same goes for the sea cadets in Llwynypia. However, one of the daftest things the MOD did last year was to sell the Pentre barracks for a paltry sum. We now really need a venue for the sea cadets and the combined cadet force to be able to work together. Would the Minister like to visit the Rhondda very soon—he may have some spare time in the near future—to look at the combined cadet force and the sea cadets?
I am not sure how useful I would be if I did have spare time in the future. There is an armed forces rationalisation programme of real estate in the UK. Some 2% of the land is owned by the Ministry of Defence and we are going through a process to rationalise that. That may include some locations that the hon. Gentleman mentions, but because of the contribution the cadets make to wider society and the armed forces, we absolutely need to work with local authorities and Members of Parliament to make sure cadets have a place to go.
Queen Elizabeth Aircraft Carrier
HMS Queen Elizabeth has returned to Portsmouth after a successful second set of sea trials. Her commissioning ceremony is planned for 7 December in the presence of Her Majesty the Queen. The handover to the Royal Navy from the contractor is planned for the end of the year.
Does my hon. Friend agree that there is now a sense of urgency? Not only are we planning a global future for ourselves, which will require a greater presence around the world, but with the royal wedding coming as early as next year, and with the absence of the yacht Britannia, is there not a possibility that the new prince and princess will require something to sail around the seas?
I certainly was not anticipating that line of questioning from my hon. Friend, the Chair of the Foreign Affairs Committee, but he is absolutely right that this new class of aircraft carrier will give a powerful expression of national ambition and intent. They are versatile and agile ships and will be able to perform a wide range of maritime security roles.
Will the Minister confirm that the Government see the future of the Queen Elizabeth, when it comes into service, as an aircraft carrier and not as meeting defence cuts by replacing amphibious landing craft such as HMS Bulwark and HMS Albion?
I am delighted to confirm that we have not only one aircraft carrier but a second aircraft carrier, which is now structurally complete, at Rosyth. Of course, there will be adaptations to ensure that the carriers are able to support the full range of helicopters in our fleet, but we have absolutely confirmed that we will have a full range of maritime capabilities from these two remarkable and adaptable ships.
It will be essential that we have sufficient surface fleet to provide escort capability for the carriers. Will the Minister confirm that we will indeed have sufficient of the Type 31s and that, where possible, they will be made from UK steel?
My hon. Friend is absolutely right. To give just one example, today in Portsmouth one of the new Military Afloat Reach and Sustainability tankers has been commissioned into the Navy. There are six Type 45 destroyers. We cut steel on the first of eight new anti-submarine frigates, and we are running the competition for the Type 31e global general purpose frigate.
HMS Diamond recently had to abandon its operations because of issues with its propeller. This means that none of the £1 billion Type 45 destroyers, which have been riddled with issues, is currently at sea. Given the important role that they will play in supporting the carriers, what urgent action are the Government taking to remedy these issues?
There is of course a limit to what we can comment on with regard to the specifics of the situation, but I can assure the hon. Gentleman that as part of our regular force deployment we will be regenerating that capability, and the Royal Navy is able to meet all its operational capabilities around the world.
Order. I gently point out to the House that although very engaging, the exchanges have been rather protracted, so progress is slow. There are lots of very important questions on the Order Paper that I am keen to reach, so let us try to speed up.
Hawk Aircraft: Overseas Promotion
The Ministry of Defence and the Department for International Trade continue to work closely with BAE Systems to promote and secure sales of the world-leading Hawk advanced jet training aircraft.
I recently had the opportunity to talk to Unite and GMB members about the importance of a consistent flow of orders to maintain jobs throughout the supply chain for Hawk. In a recent debate on defence aerospace strategy, the Minister referred to 12 Hawk aircraft for Qatar. Has this figure changed from the six initially announced? Could she update us with progress on getting further orders on the books?
I can absolutely confirm that the Government are working wholeheartedly in every way they can to ensure that we put that order from the Government of Qatar on the order books by the end of the year. That includes—
Is it six or 12?
I can write to the hon. Gentleman if there is some confusion. I thought it was six.
How important are these iconic aircraft to supporting and promoting the soft power of a global Britain?
My hon. Friend and constituency neighbour will know that the Red Arrows have just returned from a very successful tour of the Gulf. Part of what they do is support the wonderful export campaigns that the company is running.
There are 21 RAF officers sitting in the Gallery today who are due to be deployed on Op Shader in the new year. I am sure that the whole House wishes them well in their future deployment.
Ten days ago, we had a debate in this Chamber on a new defence industrial strategy. Given the jobs that are still vulnerable at Brough and the Qatar order that we still do not have the detail on, can we just have a defence industrial strategy, please?
I am happy to pay tribute to the people who are here in the Gallery today for everything that they do.
The hon. Lady is right to keep raising these issues. I can assure her that the Government are focusing very fully on both the matters that she raises.
On the day that the Government are launching their industrial strategy, this country is in danger of losing its sovereign defence industrial capability, not least in aerospace. Will the Minister therefore be specific in telling us what efforts she is making to promote additional orders across the world?
Nonsense! We could not be working harder across the globe. We have not only the Department for International Trade but a fantastic network of defence attachés.
What are you doing?
I am working tirelessly on behalf of the Government, travelling around the world to support a range of different export campaigns, as is my colleague, the Secretary of State for International Trade.
We take cyber-attacks very seriously and are aware of the increasing threats. As part of the defence cyber programme, we are investing £265 million in a programme of cyber-vulnerability investigations for military equipment, building a new £40 million cyber-security operations centre, and ensuring that our people are fully equipped to meet the cyber challenge.
Is the Department looking at the recent Russian activity in this sphere, especially in Ukraine and Crimea, where it is clear that cyber-warfare has gone hand in glove with conventional warfare? The initiatives that the Minister has outlined today are very welcome, but does he understand that he also has to speak to and include other Departments, commercial interests and media outlets?
I was in Ukraine quite recently, and the right hon. Gentleman makes a powerful point. That is precisely why this has to be a cross-Government effort, and why we are spending some £1.9 billion on our national cyber-security strategy.
My constituents in GCHQ are on the front line of the UK’s cyber-defence, and they are among the brightest and the best. Recruiting and retaining people of exceptional ability does, however, require competitive levels of pay. May I urge my right hon. Friend and the Foreign Secretary to have that very much in mind when future decisions are made?
I was in my hon. Friend’s constituency quite recently at GCHQ, looking at the joint work that the MOD and GCHQ are carrying out together. He makes a reasonable point. That is why we are determined to invest in a career structure for cyber specialists, and we will be opening the defence cyber school at the Defence Academy at Shrivenham in January 2018.
Tweets are cheaper than tanks, and Russia, Iran and other state and non-state actors are increasingly looking to cyber and to social media as a cheap, effective way of destabilising the west. The Foreign Secretary told this House that he had seen no evidence of Russian interference in UK elections or the referendum. Has the Minister?
Let us be absolutely clear: there are limits on what we can discuss in this Chamber, and I think the hon. Lady will recognise that. In this age of constant competition, this country is under constant attack from both state and non-state actors, and this is a defence capability in which we are determined to continue to invest.
Does my hon. Friend agree that a trade-off between cyber and conventional capabilities is wrong; that the MOD needs to be capable of cyber, conventional and non-conventional forms of warfare; and that further cuts to our niche and specialist capabilities will do strategic harm to this country?
I certainly agree that this is not a binary choice. Indeed, perhaps it is more of a digital choice, as we look further on in the 21st century. That is why it is absolutely right that we are carrying out the national security and capability review, because as the threats intensify across the spectrum, we have to invest in those things.
I wonder whether the Minister heard BBC Radio 4’s “Profile” yesterday on Yevgeny Prigozhin, otherwise known as Putin’s chef, and his so-called troll factory in St Petersburg. If the Minister heard it, he should be very concerned indeed about Russia’s increasing efforts at cyber-warfare and the threat of disruption it poses to our democracy and the defence of the realm. What steps are he and the Department trying to take to minimise that serious Russian threat?
I am grateful to the hon. Gentleman for giving me the opportunity to say that I did not hear that profile yesterday because I was at the 100th anniversary of Cambrai—the first use of the tank—in France, and a marvellous event it was, too. He makes a reasonable point, and I can only refer him to some of the comments I have made during this question about investment and how seriously we take the threat.
Partner in Defence
The MOD works closely with our allies and partners, making a crucial contribution to Britain’s status as a global power. The challenging global security context, including a resurgent Russia, makes our relationships all the more vital. In my first three weeks, I have met Defence Ministers from the US, France and other NATO members, and I will continue to engage widely.
Given the current financial pressures within the MOD, does my right hon. Friend agree with Lieutenant General Ben Hodges, who was the commander of the US army in Europe and who said that Britain risks
“going into a different sort of category”
of ally if we cannot maintain our capability commitments?
When I had the good fortune to sit down with Secretary Mattis to discuss our partnership, what struck me was the value that the United States puts on everything that Britain does, and the contribution our men and equipment make. He was left in no doubt that that commitment—that resolute support that we have always provided to the United States—will always be there.
Despite what the Secretary of State says, Lieutenant General Hodges and James Mattis have both said that we will lose our clout in NATO and our place at the top table if the cuts continue. Will the new Secretary of State commit to stopping the cuts to our capability, and will he make sure that Britain stays at the top table and that we have the capability to defend ourselves and our allies?
The Government’s commitment to making sure that we have the very best for our armed forces has always been clear. The rising defence budget, which is going from £36 billion to £40 billion, is evidence of that commitment. [Interruption.] The United States knows quite clearly that we will always be there in support of them, regardless of what the hon. Lady’s leader may wish. [Interruption.]
Order. An unseemly habit is developing of Members asking a question and then proceeding to rant from a sedentary position during the course of the reply. I had a letter about that today from a member of the public, who was most aggrieved. I am sure the hon. Lady would not wish to disappoint the person concerned, and that she will recover her usual composure ere long.
I call Bob Stewart—a well-behaved fellow.
I am not normally, but thank you, Mr Speaker.
Bearing in mind our alliance relationships, how long does my right hon. Friend think that RAF pilots will have to continue to fly above Iraq on Op Shader, as apparently Daesh is almost defeated?
My hon. Friend raises a very important point. While we have made such amazing progress, with over 1,600 operations flown by the RAF over Iraq and Syria, we should not think that Daesh, as territory is denied to them, are actually defeated, because they will disperse. The threat this country faces means that we will continue to have to fly operations above Iraq and Syria for a considerable time.
Our amphibious capability is important to our defence partners, so is the future of HMS Bulwark and HMS Albion secure?
There has been an awful lot of speculation in the press about all of our capabilities. As part of the national security capability review, we have been asked to look at everything that we do, but I am not going to start any speculation about what the results will be. I have made it clear that I want to look at the evidence and the details, and we are not going to be rushed into any decisions.
Lethal Autonomous Weapons
The MOD continuously monitors developments and challenges arising from emerging weapon technology, including increasingly automated weapons systems. The UK considers the UN convention on certain conventional weapons to be the right forum in which to discuss lethal autonomous weapons systems, and welcomes the progress made in Geneva by the group of government experts earlier this month.
Weapons that can kill without human instruction or accountability are not science fiction, but a worrying potential reality with huge moral consequences. If we are to secure international agreement on the control of these lethal autonomous weapons, we need to start from a common understanding of the challenge, so will the Minister re-evaluate the UK’s definition of autonomous weapons systems to bring it into line with that of the United Nations?
My understanding is that there is no international agreement on what an autonomous weapons system is, which is precisely why calls for, for example, pre-emptive bans would be inappropriate at this point. The task in hand is absolutely to get an internationally agreed definition, and we believe that the UN CCW is the right forum in which to do so.
Does the Minister agree that no matter what the advances of technology on the battlefield, only humans can effectively hold ground, deterring enemy activity and winning the hearts and minds of local communities, and that we will therefore always need an Army of about the current size or larger?
We will definitely always need an Army.
National Security Capability Review
With threats intensifying around the world, it is vital that our armed forces have the right capabilities in order to defend global security. We are making good progress: evidence has been reviewed, analysis conducted and options developed. I very much look forward to working with my hon. Friend and listening to his comments on how best to take this forward.
I very much welcome the Secretary of State to his new job because, given his background, he is ideally suited to fighting the corner in the upcoming reviews. Will he please speak to the Prime Minister and remind her that the primary duty of any Government is the defence of the realm? Will he speak to the National Security Adviser, and indeed the Minister for the Cabinet Office, and remind them that they must not use this review as some sort of camouflage to cut our services? Will he speak to the Chancellor of the Exchequer and ensure that he digs deep in his pockets to produce the money we need? Above all, will he speak to his right hon. Friend the Chief Whip and remind him that, if the Chancellor does not do so, he will be facing a very substantial rebellion?
I thank my hon. Friend. I can assure him that I will speak to every single one of the people he has mentioned. As he rightly points out, the defence of our nation is the primary responsibility of every Government, and it is one that I take exceptionally seriously. When we see our armed forces and everything they do, and the commitment with which they give themselves to it, we cannot be anything but awed by it. I will do everything I can to deliver for them.
Order. I am glad that the hon. Gentleman got the word “capabilities” in, therefore making his question relevant to the question on the Order Paper.
I pay tribute to my hon. Friend the Member for Plymouth, Moor View (Johnny Mercer), who has continuously lobbied me on the importance of the Type 23 frigate to the Plymouth Devonport dockyard. When I visited the dockyard, I was very impressed to see all the work being done there. I will be looking at all the capability within all our forces to ensure that we get the very best out of everything we do and every pound we spend.
I, too, welcome the Secretary of State to his new role and wish him all the best for the future, whatever challenges may now await him. I reiterate the point made by my hon. Friend the Member for North Wiltshire (James Gray), and echoed by the Secretary of State, that the defence of the realm is the first duty of Government, above all others. Does he agree that our history as a nation teaches us that lesson again and again?
My right hon. Friend always speaks with a high degree of common sense and truth. I pay tribute to him for the work he has done for the Ministry of Defence. I agree with his assessment, because ultimately a Government will be judged on how they defend the nation.
Maintaining capabilities is as important as creating them, so how much will it cost to upgrade the nation’s docking facilities now that it is necessary to refuel all the Vanguard submarines, which was not originally planned, alongside deep maintenance to the Astute class? Who will pay for that?
We are working with our industrial partners on that, including Babcock, and looking closely at what the costs will be. I am unable to reveal those costs to the House at this moment, but that body of work is continuing.
Defence Suppliers: Innovation
The £800 million defence innovation fund provides great opportunities for innovative suppliers. For example, I can today announce that the defence, science and technology laboratories, working with industry and academia, have developed a cutting-edge new chemical process to recover fingerprints, making it harder for terrorists and criminals to escape justice.
The Minister identifies great innovation within our suppliers, but does she also agree that an example is shown by the advanced induction motor technology—the most power-dense electric motors available anywhere—that have been installed on the Queen Elizabeth aircraft carrier, which were manufactured by GE in my constituency?
My hon. Friend is absolutely right to speak up for the amazing work being done in his constituency, not only for the carrier programme, but for the long-lead items for the Type 26 frigates.
The Government talk about wanting to increase the role of small and medium-sized enterprises in MOD procurement. Can the Minister tell us what steps have been taken to facilitate that?
A range of steps have been taken to facilitate that. For example, we have a single website, which is meant to be an easy portal into what we are procuring at the MOD. We have shortened the contract we require small businesses to sign, from 18 pages down to three. We also have a system of people within the organisation who can help new businesses find their way around the intricacies of the MOD.
Personnel deployed on operations must have confidence that their families at home are able to access the support they need. Our welfare support is provided to families before, during and after deployment.
The tri-service families continuous attitude survey 2017 found that one in three spouses did not even know where to go for services that provide welfare support while their partner is deployed. Does the Minister agree it is vital that service families know where help is available? What steps are the Department taking to ensure that that is the case?
I am sorry to hear that the hon. Gentleman has an example of where the system has perhaps not worked as it should. It is very important, if we are to have the most professional armed forces in the world, that those deployed know that their loved ones are looked after back home. I am happy to meet him to discuss in more detail the particular issue he raises.
Will the Minister join me in congratulating Newport County football club and Newport Live on recently joining the armed forces covenant? Does he agree that the only adequate way we can deal fairly with those who have been injured in body or mind by their service is to provide them with facilities and benefits that will leave them in a position where they do not have to rely on charities?
The hon. Gentleman makes reference to the armed forces covenant. It is probably the single biggest change in support and recognises that no member of the armed forces or veteran should be somehow disadvantaged because of their service. He is right to pay tribute to that, and I encourage all hon. Members to visit their local authorities and ask what is being done to ensure that they are living up to the requirements of the armed forces covenant.
One of the most important things for deployed servicemen is to know that their families back home are in safe, secure and high-quality accommodation. The need for the redevelopment of the REEMA sites in Carterton, outside RAF Brize Norton in my constituency, is now acute. Will the Minister please tell me what hope the future accommodation will provide to those servicemen living in my constituency?
I was hoping to share with the House the importance of the future accommodation model, which is ensuring that we update the accommodation available to armed forces personnel. Some want to rent and some want to live outside—that is what the accommodation model is all about. If I may, Mr Speaker, I would like to pay tribute to the work of the Families Federations in supporting our armed forces personnel and their families when personnel are on operations.
The UK has been involved in the European Union’s Operation Sophia in the central Mediterranean since its start in June 2015. Since then, Royal Navy vessels have saved over 12,500 lives and over 500 smuggling vessels have been destroyed.
I thank the Minister for that response. It is welcome that Operation Sophia has saved so many lives, but it is clearly failing to disrupt human trafficking in the way that was intended. Will he talk to our European partners to ensure that it can be recalibrated to achieve that goal?
We routinely assess our contribution against the operation’s core objectives. We recognise that it has not prevented the flow of migrants, but it has lessened the ability of smugglers to operate in international waters, and forms just one part of a wider Government strategy.
I start by paying tribute to my predecessor, my right hon. Friend the Member for Sevenoaks (Sir Michael Fallon), who has done so much for our armed services and was one of our longest-serving Secretaries of State for Defence. It is a true honour to be Defence Secretary, and I am proud to represent some of the finest armed forces in the world.
I also thank those involved in the UK contribution to the rescue operations for the Argentinian submarine San Juan. The UK contribution to the search includes HMS Protector, HMS Clyde, a C-130 and the Royal Navy’s submarine parachute assistance group. I also thank the volunteers and service personnel who did so much to raise money for the poppy day appeal. The appeal, which is valued by so many, has raised tens of millions of pounds and will make a difference to many lives. I also thank the Chancellor of the Exchequer for his kindness and generosity in the allocation of LIBOR fines. I hope that such generosity will continue into the future.
I am sure that my right hon. Friend will join me in paying tribute to the 150 British troops sent to north-east Poland, to the Suwalki Gap, on rotational deployment. What steps will he take to ensure that we increase those numbers and continue to support our Polish allies in a post-Brexit world through our NATO alliance?
I have already had a great opportunity to meet my Polish opposite number, who is incredibly grateful for our commitment to the defence of Poland. We constantly review troop numbers and are committed to the current rotation, but we are always open to the idea of committing more. We must not underestimate the threat that Russia continues to pose and must be ready to step up to such a threat. Although we are leaving the EU, our commitment to the collective defence of Europe is not diminished.
It is alarming that one of the scant references to defence in the Budget is to forces families in the private rented sector—a less than subtle hint that the future accommodation model threatens to fragment our forces communities. With the private sector characterised by high rents and variable landlord performance, what guarantees can the Minister give that under the future accommodation model, no service personnel will be forced out of service accommodation and scattered into the private rented sector?
I think the hon. Lady would agree that we need to provide an offering that attracts new recruits and retains those serving. We also have to recognise the competition we now face from within the private sector and the jobs sector. That is why we have an armed forces people programme looking not just at accommodation but at the offering right across the board. It is important that we roll out the new accommodation model. A pilot scheme will be introduced at the end of next year. It will provide an offering that gives people the choice between staying on the garrison, renting and owning their own property.
Mr Speaker, I join you and the Secretary of State in congratulating Prince Harry and Meghan on the announcement of their engagement. I had the privilege of working with Prince Harry in Toronto this year. The Invictus games are absolutely his project. They started in London and continue next year in Sydney. They give those who perhaps have given up on life a new chapter through sport. Prince Harry is to be hugely commended for the work he does, along with the rest of the royal family, in supporting our brave armed forces personnel and their families.
Of course I can confirm that we have a commitment to a world-class shipbuilding industry. Indeed, the shipbuilding industry in Scotland has a pipeline of work going out two decades.
My hon. Friend has raised a valid point. Of the three major parties—us, the Labour party and the Scottish National party—the only one that can guarantee that we will have an independent nuclear deterrent is the Conservative party. Let no one forget that.
The hon. Gentleman’s question gives me an opportunity to pay tribute to the fantastic work that is being done on the 589 Ajax vehicles. This is the largest contract for military vehicles that has been awarded in the country for 30 years, and it involves a lot of work for the South Wales workforce.
My hon. Friend will be aware that at the Warsaw summit in 2016, NATO committed itself to responding to Russian belligerence through enhanced defence, deterrence and dialogue. I am delighted to have been able to visit our armoured battlegroup in Estonia this summer. About 800 personnel are delivering the enhanced forward presence, together with the Royal Air Force, which has already supported that operation on two occasions.
I can confirm that—exactly as outlined in the recommendations of the national shipbuilding strategy, and as has been stated before in the House—that particular part of our shipbuilding programme will be open to international competition, including shipyards on the Clyde.
Having had the opportunity to meet my opposite number from Romania, I am aware that one of the real threats that it continues to face is increasing pressure from Russia. Britain has a long and proud tradition of locating troops and resources in Romania, and we are continuing to do so with Typhoons operating in Romanian skies. Our commitment to that, along with the standing NATO naval task group, is an important bulwark against increasing Russian aggression on the eastern flank.
This coming Thursday marks the 36th anniversary of the disappearance of a young toddler, Katrice Leigh, from a NAAFI complex in west Germany. As the Royal Military Police’s Operation Bute is still live, will the Secretary of State agree to review the case and meet me, and my constituent Mr Richard Lee, Katrice’s father, to discuss the matter?
I should be more than happy to review the case and meet the hon. Gentleman to discuss it in greater detail.
I am aware that 24 Commando Engineer Regiment is based at Chivenor, and that the location has historical importance. As my hon. Friend will know, it is due to close in 2027 as part of the rationalisation programme, but I should be more than happy to sit down with him and discuss the situation a bit further.
The Minister has already spoken about the important trade role that the Red Arrows play as ambassadors for great British aeronautical engineering. Will the Secretary of State, who knows East Yorkshire well and knows how important those skilled jobs are to Brough, look again at the request from 142 Members on both sides of the House for renewal of the fleet for the Red Arrows?
I am glad that the hon. Lady pays tribute to the Red Arrows’ amazing trade promotion role. She will know as well as anyone that the current Red Arrows will be in service until 2030, so a decision to replace them will not need to be made until after the end of this Parliament.
We have already seen the announcement of an uplift of 85 personnel, who will be going to Afghanistan to support the work of the Afghan army. We will be supplementing that with an additional 60 service personnel, in order to continue the training and support that the Afghan army needs. While we have seen substantial progress made in Afghanistan, we cannot take that for granted. We must continue to support the Afghan Government as they continue to root out extremism.
Despite the dangerously depleted state of the service, the Royal Navy has for the first time ever been chosen to mount Queen’s Guard—and very smart and taut they looked too, in my opinion. Will the Secretary of State take this opportunity to pay tribute to the Royal Navy—in fact, to the senior service?
It would be a great honour to pay tribute to the senior service. Having been on HMS Queen Elizabeth, HMS Westminster and HMS Sutherland and seen the work they do, one cannot help but feel proud. I am very tempted to give you an honorary captaincy of a ship—[Interruption.] Sorry, and you, Mr Speaker; I think I have handed out two already. To be honest, Mr Speaker, I thought of you more as an admiral than as a captain, and if that gets me out of a slightly difficult situation, I will make you an admiral of a fleet.
I now realise something I had never previously known: that charm is the middle name of the right hon. Gentleman.
RM Condor in my constituency of Angus has been home to the elite 45 Commando unit since 1971. Over the last 46 years it has been the lynchpin of the local community, and the base is one of Angus’s major employers. Will the Minister confirm that there are no plans to close RM Condor and that 45 Commando’s place in Angus is secure? Does he agree with me about the extremely reckless behaviour of nationalist politicians in scaremongering on this serious matter?
As I touched on earlier, there is a large area of Britain owned by the MOD. It is important that we rationalise this real estate, and that means looking at a number of locations. Ninety-one across the country have already been earmarked. If memory serves, I think it is just the airfield in this case that needs to be looked at—the remainder is staying in place—but I will be happy to sit down and discuss it with my hon. Friend.
Captain Speaker, the Secretary of State is fresh, new and busy, but can I beg him to read John Fitzgerald Kennedy’s little book “Why England Slept”? Does he not think that England has been sleeping while the world has become a much more dangerous place?
I think there has been a tendency since the early 1990s to think that the world is a much safer place than it actually is. There has been a tendency sometimes to sit back and believe that everything is just going to be safer and safer. The world is rapidly changing, and it is not just threats from terrorism; it is threats from peer enemies as well. We need to understand what those threats are and make sure that we are equipped to deal with them. I am looking forward to a Christmas break, as I am sure the whole House is, and if I get a few hours spare, I will be sure to read the book.
At the risk of being given an honorary captaincy, may I congratulate my right hon. Friend on his job? I am sure he will do it extremely well. In his ongoing and delicate discussions with the Treasury, will he remain aware, first, that there are those of us on this side of the House who believe that the defence budget has been pared back about as far as it can be, and secondly, that when it comes to Trident renewal many of us on this side of the House do not believe it should be part of the defence budget? Indeed, it distorts the defence budget, and if that is part of his argument, he will have considerably more support than perhaps he knows.
Everything that my right hon. Friend has raised will be part of the review. He has raised the important question of nuclear capability being part of the defence budget. It has traditionally not sat as part of the defence budget; that changed only post-2010. It is vital to look at all options as part of the national security and capability review, and I look forward to speaking to him and seeking his advice and thoughts on the issues that he has raised.
The Secretary of State began today by outlining the three places that he had visited in the early days of his appointment, on which I congratulate him. What reassurances can he give to the workers at Rosyth that their contracts will be secure following the departure of the Queen Elizabeth class carriers, and will he visit Rosyth?
I have already had the privilege of visiting Scotland, and I will be certain to visit Rosyth in the future. I am incredibly grateful for the amazing work that has been done on the construction of HMS Queen Elizabeth and HMS Prince of Wales, and we look forward to working with all our industrial partners to ensure that we have a robust industrial defence sector. I very much hope that we will have the support of the hon. Gentleman’s party for that and for the defence of the whole of the United Kingdom.
The Secretary of State has had a foretaste from both sides of the House today of the furore that is likely to follow if HMS Albion and HMS Bulwark are deleted from the inventory. May I humbly suggest that, given the relatively small saving that that would represent, the game is simply not worth the candle?
Someone once said to me that there was no such thing as a former Chief Whip, and I always listen with great intent and interest to the views of all colleagues.
Order. We must move on.
On a point of order, Mr Speaker.
I will take this point of order, colleagues, as I understand that it flows directly from these exchanges. Points of order would otherwise come after statements.
Further to the question from the hon. Member for Ilford North (Wes Streeting), I should like to clarify that the statement of intent for Qatar is for six Hawks, which gives 12 months of work at Brough.
I am most grateful to the Minister for that clarification—[Interruption.] Somebody is wittering from a sedentary position that he knew that, but he might be in an exclusive category of one. For others, however, the information is useful and we are grateful to the Minister for taking this opportunity to provide it.
Aye aye, sir.
Forensic Evidence: Alleged Manipulation
(Urgent Question): To ask the Secretary of State for the Home Department if she will make a statement on the developments surrounding the alleged manipulation of forensic evidence at the Randox and Trimega laboratories in Manchester.
I thank the right hon. Lady for her question and apologise on behalf of the Home Secretary that it is me responding to her. I should also like to take this opportunity to place on record my congratulations to Prince Harry and his fiancée.
In January, Randox Testing Services informed Greater Manchester police that there may have been a manipulation of test results at its laboratories. Ongoing police investigations have since uncovered the possibility of the same manipulation having occurred at Trimega Laboratories. Criminal investigations by Greater Manchester police into the alleged manipulation of toxicology results are ongoing. The House will therefore understand that I must be cautious in my response, but I want to assure Members on both sides of the House that the matter is being treated with the utmost seriousness, given the need to retain public confidence in our justice system.
The Government’s immediate priority is to work with the police and the independent Forensic Science Regulator to establish the full scale of this issue and the potential impact on the public. I laid a written ministerial statement on this matter before the House on 21 November. I understand completely that public confidence in the justice system is absolutely vital, which was why the written ministerial statement noted that my hon. Friend the Minister of State, Ministry of Justice, who is in the Chamber, will be overseeing the review process for individual cases and will work closely with Ministers from other Departments who are impacted by the outcome of this investigation.
Retesting in criminal cases has been under way since May and is ongoing, and the police, the Crown Prosecution Service and coroners will be contacting affected individuals once the outcomes of the retests are known. The Department for Education has also asked all local authorities in England to review their records to establish whether they commissioned tests from Trimega, and to consider whether any action is necessary to fulfil their safeguarding responsibilities. It is unlikely that decisions about the welfare of children will have been taken solely on the basis of toxicology test results, but the Department for Education has asked local authorities to assure themselves that the rationale for decisions made about children’s safety and wellbeing is not now called into question. The Government fully understand that people may have concerns about family cases, which is why the Ministry of Justice has created an application form to allow people to apply to court to have their cases looked at free of charge, if they are concerned.
Government officials will continue to work with the police to monitor the scale of this pressing issue as information emerges. Furthermore, as Greater Manchester police’s investigation continues, we are considering what lessons can be learned to ensure that public confidence in forensic science is upheld.
Does the Minister accept that this is the biggest forensic science scandal for decades? It involves not only data that includes evidence used in sex cases, violent crimes, driving cases and unexplained deaths, but the liberty of subjects, so does he understand the concerns of victims and of people who might have been convicted on the basis of unsafe data? Is it true that Ministers did not consult the chief scientific adviser on the decision to privatise the Forensic Science Service but merely informed him of that decision two weeks before announcing it?
Is the Minister able to tell the House how long it will take for all the retesting to be completed? Is he able to say more about the scale of the problems at the two named laboratories? When will he be able to provide the House with full details, subject to legal proceedings? Are any other labs under suspicion? Is he able to specify the likely cost to the public purse arising from retests, appeal procedures, and possible litigation and compensation payments? What is the Government’s response to the likely human cost of incorrect forensic evidence in family court cases? What is the scale of comparable costs in criminal court cases?
Does the Minister agree with Professor Peter Gill, one of Britain’s most distinguished forensic scientists, who said that it was difficult to imagine the scandal having occurred under the Forensic Science Service, when scientists were routinely sent mock cases that were checked as a quality control? He stated:
“When you get rid of that system the quality is quite difficult to maintain”.
Does the Minister accept that many stakeholders, including those in forensic science, believe that the problems and the allegedly faulty data that we are now seeing flow directly from the misconceived decision to privatise the Forensic Science Service?
I start by agreeing wholeheartedly with the right hon. Lady that this is an extremely serious matter. Members on both sides of the House will completely understand why it could be unsettling for any potential victims—there is no doubt about that at all. At its heart, this matter is about public confidence in our justice system—it is as serious as that.
Where I do disagree with the right hon. Lady—we are coming from a different place on this—is when she tries to squeeze this into a Labour political narrative around “public good, private bad.” I simply tell her what the independent Forensic Science Regulator has expressed:
“No reasonable set of quality standards could guarantee to prevent determined malpractice by skilled but corrupt personnel”.
I would go further. I think that there is general understanding and agreement that there has in fact been increased stringency in the standards and quality requirements for forensic science within the CPS—[Interruption.] There is muttering on the Labour Benches, but this has been driven by the Forensic Science Regulator, who in 2011 published the first codes of practice and conduct for forensic service providers. I am not at all sure that we could have regulated against this situation.
The right hon. Lady asks about testing. I can confirm that 70% of top priority cases are already in the system for retesting—there are around 10,000 cases in relation to Randox. I cannot answer some of her other questions because they fall within the boundaries of the police criminal investigation.
I understand the right hon. Lady’s point about costs and the impact on the criminal justice system, about which we are obviously concerned, but it is too early in the testing process to be making judgments. If we are to have a clearer view of the impact, we will need to see where that process leads but, as she would expect, we and our colleagues in the Ministry of Justice are monitoring it very closely.
Order. I am keen to try to conclude these proceedings by 4 o’clock, if possible. This is an important matter, but there is a statement to follow and a very, very heavily subscribed continuation of the Budget debate, which colleagues will want to factor into their calculations when asking questions.
Perhaps the Minister can help us a little more on this very serious matter. Can he give us some idea of the dates over which this alleged wrongdoing took place and how they relate to the changes in the Forensic Science Service? What percentage of the samples involved were or were not used for evidential purposes in criminal cases or others?
My hon. Friend is entirely right that what is alleged goes back over many years—[Interruption.] Some of the issues at the other organisation may go back as far as 2010. My central point is that any attempt to try to link this to the FSS issue is driven by tribal politics, rather than clear assessments of the underlying reality.
It is imperative that the public trust forensic science testing and, by extension, criminal and civil justice as a whole. There were warning signs about the firm’s predecessor, Trimega, which had seen children almost taken into care on the basis of erroneous evidence. That major mistake should have been a red flag to the Government, so why were they not alert to the risk presented by the Randox lab, given that its predecessor had such a poor record?
Does the Minister agree that the privatisation of vital elements of the justice system without proper oversight can lead to errors or deliberate tampering, and that the cost both to the individuals affected and to confidence in the justice system outweigh any money saved? Finally, what steps will he take to restore the public’s faith in forensic expert evidence and the justice system as a whole?
I clarify that, although there are possible employee links, Trimega and Randox are separate organisations. Trimega was doing something different and was subject to a different regulatory regime—for better or worse, the regulatory regime in relation to the family courts has always been lighter. However, I completely agree with the hon. Lady about the seriousness of the allegations and the issue underlying the investigation into Randox, which is why, following the analysis of what has been done, I believe that the Government and the system have acted very quickly to respond to the information we received in January 2017 by setting up proper processes of retesting and prioritising these cases.
To reassure my constituents, will the Minister confirm that, for the most serious family and criminal cases, it is highly unlikely that a decision would have been made solely on the basis of one individual toxicology test?
I do believe that to be true, and my understanding is that in some of these family cases more than one test will be taken. However, that does not take away from the uncertainty that people involved in these cases may feel, which is why my colleagues in the Ministry of Justice have set up a bespoke process that people can access quickly under which they can request that their case is reviewed.
In passing, it is worth noting that when my right hon. Friend the Member for Tynemouth (Mr Campbell) and I were Home Office Ministers, we ruled out the privatisation of the Forensic Science Service. But my question to the Minister is this: if wrongdoing by a private sector company is found in due course, what penalties will be levied against it?
How nice to have been a Minister before the age of austerity. The answer to the right hon. Gentleman’s question is that he is jumping the gun in terms of the police investigation. We should let Greater Manchester police do their work.
Obviously this is extremely serious. Can my hon. Friend confirm that his Department is providing all the necessary support so that the police can prioritise testing live cases?
I thank my hon. Friend for that question. Again, I am satisfied, having reviewed our process, as I do regularly, that the system and the gold command, which was set up very quickly, have done a good enough job of prioritising cases and getting retesting going as quickly as possible. As I said, the last numbers I saw suggested that 70% of the priority cases were in the system for retesting.
Is the Minister able to say whether Randox’s contract has been suspended? Is he able to say, in general terms, whether a company that was guilty of manipulation would have to pay all costs associated with retrial, for instance?
As I understand it, the police have suspended all contracts with Randox. Randox is co-operating with us fully on identifying the priority cases and getting the retesting done as quickly as possible. On the right hon. Gentleman’s question about future costs, I refer back to what I said before: we need better evidence about the impact on cases.
The Minister accuses Labour of politicising the forensic service, yet it was his Government who chose to privatise it out of the mistaken and ideologically bankrupt view that everything is better when it is done in the private sector for the profit motive. Will he now distance himself from that ideology and recognise that public confidence in the justice system requires public servants?
I refer the hon. Lady to what I said before and to the view of the independent regulator, who arguably knows more about this than anyone in the House. She has expressed the view that
“no reasonable set of quality standards could guarantee to prevent determined malpractice by skilled but corrupt personnel”,
which it looks increasingly clear is what has happened. That is what the independent regulator has said, and I am really sorry if it does not correspond with the views of the Labour party.
Professor Peter Gill is the most distinguished forensic scientist. He did magnificent work on DNA mass profiling. His authority is unquestioned, and he warned that what happened with privatisation would lead to the present situation because of a lack of trust in results. I have spent my working life in laboratories, so I know how highly prized the integrity of scientific results is. This is a very rare situation, with an accusation having been made, and I am afraid it is the Government who have taken a political stance on this. The Opposition and the scientific community are absolutely right to be deeply concerned.
As I said clearly at the outset, I do think that the situation is extremely serious, but I agree with the hon. Gentleman’s diagnosis that it may be a rare one. Again, I repeat the view that the regulator has reached about the efficacy of any standards of regulation to prevent
“determined malpractice by skilled but corrupt personnel”.
Again, I place on record the progress that has been made since 2011, when the regulator published the first codes of practice and conduct for forensic science providers. I do think that there is increased stringency in the standards and quality requirements for forensic science, and that matters enormously because of the way this underpins confidence in forensic science within the criminal justice system.
The Minister does himself no credit when he says that this is a tribal issue. I direct him to three reports—not one or two—by the cross-party Science and Technology Committee that criticised his Government’s Home Office for not consulting Professor Silverman, who was the scientific adviser to the Home Office. I also suggest that he reads the evidence—three times—from Dr Tully, the Forensic Science Regulator, who said that murderers and rapists will go free because of the changes that the Government made. Not one party but all parties came to that conclusion. Given what appears to have happened in my constituency, will the Minister, after the courts have dealt with the matter, look into conducting a full review of forensic science services?
As I have made clear, this is an enormously important issue. We need to get hard evidence of what happened and its impact on the system, and all lessons will have to be learned from that process. I know that the Opposition do not like it, but the point I am trying to make is that the urgent question was about what happened at Randox, not about the privatisation of the Forensic Science Service. As the independent regulator said, there is no link.
I used to work for the NHS as a clinical scientist, and every test that we did in our laboratory, including toxicology testing, was subject to rigorous internal and external quality control standards. It is my understanding that the Forensic Science Regulator has no statutory authority over private forensics laboratories. When will the Minister give the regulator statutory authority?
In the 2016 forensic science strategy, we committed to placing the Forensic Science Regulator on a statutory footing by the end of this Parliament. We are seeking the appropriate parliamentary opportunity to do that.
The Minister does not seem to be aware that senior police officers think that the Forensic Science Service has been a mess ever since privatisation, with long delays affecting victims and the wider justice system. One reality of the current situation is that there will have to be significant retesting, which will cause further delays. The Government have to look into this matter and reviewing the decision to privatise needs to be central to that process.
I agree that retesting is the priority and that that needs to be done as quickly as possible—that is a Government priority—but I do not think that revisiting the decision on the Forensic Science Service is a priority. As I have said, that decision was taken in 2011. We have seen increased stringency in the standards and quality requirements. We should not be revisiting those old arguments.
Following on from the question asked by my hon. Friend the Member for Heywood and Middleton (Liz McInnes), the Forensic Science Regulator said in January that she needed statutory powers to enforce regulation as soon as possible—not in 2022, but as soon as possible. Will the Minister think again?
I do not need to think again. I have said we are going to do that and that we are trying to find the right parliamentary opportunity to do so.
Children’s social services and judges make decisions on adoption and fostering on the basis of forensic science services. What assurance can the Minister give, especially in relation to adoptions since 2010, that children have not been removed from families on the basis of false forensic information? What conversations has he had with Ministers in the Welsh Government about the failings of the Forensic Science Service with respect to Welsh adoptions?
My hon. Friend the Minister for Children and Families, who is sitting next to me, has written to all local authorities to ask them to review the cases in which the organisations in question may have been involved. As I understand it, he should be receiving all the evidence by the end of this week and we will take it from there.
With permission, Mr Speaker, I will make a statement on the Industrial Strategy White Paper, which has been published today.
Today, at one of the most important, exciting and challenging times in our history, the future is unfolding before our very eyes. New technology is creating new industries, changing existing ones and transforming the way in which we live our lives. We need to ensure that we are well prepared to prosper in this future. The decision to leave the European Union makes that even more important. More decisions about our economic future will be in our own hands to take, and it is vital that we take them well.
We start from a position of considerable strength: we are an open and flexible economy, built on trade and engagement with the world; we have earned a reputation as a dependable and confident place in which to do business thanks to our high standards, respected institutions and the rule of law; we have achieved higher levels of employment than ever before in our history; we are known for innovation and discovery, with some of the best universities and research institutions in the world producing some of the most inventive people on earth; and we have commercial and industrial sectors, from advanced manufacturing to financial services, and from life sciences to the creative industries, which are among the best in the world.
Our industrial strategy will build on those strengths, but it will also address weaknesses. We need to do more to make the most of our untapped potential. As the Chancellor said in last week’s Budget, although we are proud of our strong record of high employment, our average productivity—output per hour worked—is less than it could be. Productivity may not be the most exciting term, but it really does matter for people all around the UK. High productivity means greater earning power and better paid jobs. For our country, it means more money to spend on our public services.
Today’s Industrial Strategy White Paper starts with the five foundations of productivity: ideas; people’s skills; infrastructure; the business environment; and the importance of every place in the country. For each, we are clear about the kind of economy that we need to be.
Our vision is that the UK will be the world’s most innovative economy. It will have good jobs and greater earning power for all, make a major upgrade to our infrastructure, be the best place in which to start and grow a business and have prosperous communities across the country. It is a long-term strategy, working to make changes now, but looking to the future, and we are taking action to realise it. Let us take research and development as an example. Our reputation is as one of the best countries in the world for science and research, but we cannot take that for granted; we must reinforce it. Last week, we announced an increase in public investment in R and D, with the aim of reaching a combined public-private spend up from 1.7% to 2.4% of GDP by 2027, and to 3% thereafter.
I strongly believe that there are few problems that cannot be solved by the innovation and ingenuity of British business and science. History has shown that partnerships between business, Government and science can work—from the outstanding collaborations that we have had in the automotive and aerospace sectors to the recent partnerships in our creative industries.
Strategy has to be for the long term; a short-term strategy is a contradiction in terms. Other countries have benefited from establishing policies and institutions that can endure. That is why, through the consultation on the Green Paper, we have worked with businesses, industry bodies, investors, trade unions, universities, colleges and research institutions, and many others to establish a shared commitment to the actions that we will take now and in the future.
After our consultation on the Industrial Strategy Green Paper, we saw an overwhelming response to the question that we asked on whether we should pursue sector deals, as industries came forward with plans for their future. Today, we have struck ambitious sector deals with four sectors: life sciences, construction, artificial intelligence and automotive. I welcome the huge interest on the part of other sectors that are coming forward with their plans. There are still those who hear the words “industrial strategy” and associate them with the mistakes of the past—of thwarting competition, shielding incumbents and continuing with the status quo. This is not the approach that we will take. Our modern industrial strategy is not about protecting the past. It is about taking control of our future as a nation.
We have set out four grand challenges—identified on the advice of our leading scientists and technologists—that will be supported by investment from the challenge fund and matched by commercial investment. The challenges are: artificial intelligence and the data-driven economy; clean growth; the future of mobility; and meeting the needs of an ageing society. Whether we like it or not, these challenges are sweeping the world. If we act now, we can lead from the front, but if we wait and see, other countries will seize the initiative. For each of these challenges, our industrial strategy sets out how we can seize the opportunity—from using AI to raise productivity in all sectors to making our energy intensive industries competitive in the clean economy, and from supporting the transition to zero-emission vehicles to harnessing the power of big data to diagnose illnesses earlier and improve the quality of life for so many people in this country.
Britain needs to be a leader, not a follower—a country that is ahead of the curve, not behind the times. This is an opportunity to rally behind this industrial strategy, to raise our productivity and to build a country that is fit for the future. I commend this statement to the House.
I am pleased that the White Paper seems to acknowledge many of the fundamental problems faced by our economy, and give credit to the Secretary of State for adopting one of Labour’s policies to set national missions or “challenges”, as he likes to call them. But as I delve into the finer details of the paper, the aims of which may be well intentioned, it appears to be little more than a repackaging of existing policies and commitments.
The Office for Budget Responsibility figures contained in last week’s Budget were a damning assessment of the impact of seven years of Conservative austerity, with productivity, real wages, and GDP growth and GDP per capita revised down, but debt revised up. The Conservatives’ economic credibility has been shot to pieces, with people earning less than they did in 2007 until at least 2023. We have to go back to 1820, when George IV ascended the throne, before we find a time when productivity increased less than this over a 10-year period.
Today, I was full of hope—desperately hoping that the Government would press the reset button—but they have simply restated their plans for a £31 billion national productivity investment fund. As TUC analysis shows, this only raises investment to 2.9% of GDP, whereas the average for leading OECD industrial nations is 3.5 %. Labour even called on the Chancellor to use his Budget to level up regional investment in line with London, but only one—just one—of the named transport projects in the national productivity investment fund is in the north. The development of local industrial strategies is certainly welcome, but will the Secretary of State admit that they simply could not deliver the desired effects under the Government’s current investment plans?
The strategy restates the commitment to raise total research and development investment to 2.4% of GDP. This is moving in the right direction, but it is still behind world leaders and far less ambitious than Labour’s commitment to reaching 3% of GDP by 2030. The allocation of £725 million to the industrial strategy challenge fund is again welcome, but it seems to lack any real strategy. As Sheffield Hallam University recently found, the areas already identified by the fund
“account for little more than 1 per cent of the whole economy (by employment) and 10 per cent of UK manufacturing.”
Many of the policies focus on R and D spending in only a handful of specified sectors in which the UK already has a comparative advantage. This will do nothing to help the millions who work in large, low-wage, low-productivity sectors such as retail, hospitality and care, or people who do not live in the golden triangle made up of London, Cambridge and Oxford.
Finally, this industrial strategy fails to start from the bottom up. It is all well and good talking about leading the fourth industrial revolution, but this can only happen with a highly skilled, technology-savvy workforce. After seven years of Conservative Government, only 11% of students in England take IT at GCSE, and only 30% are at schools that provide it. That is certainly not laying the foundations for an economy of the future, and the amount of money for skills outlined today does not even begin to make up for the cuts inflicted on our education system since 2010. Indeed, the money allocated for the national retraining scheme amounts to only 6.6% of the funding slashed from the adult skills budget since 2010.
This industrial strategy may well be a start, but I fear that the Government have simply produced a public relations gimmick that is thin on detail, thin on investment and thin on ideas. I truly hope the Secretary of State will listen to my concerns as well as those from business and the trade union movement over the coming months, because we have one chance to reset our economy, and if we let this slip through our fingers, the people of Britain will never forgive us.
I am grateful to the hon. Lady. When she has the time to read the Industrial Strategy White Paper we have published today, I hope that she will reflect on the substance, content and ambition of this strategy and that she will come out in support of it.
One thing that the hon. Lady should know, and that every Member of the House knows, is that for our country to prosper, we need a sound economy. The last time the Labour party was in government, we had the biggest financial crisis since the 1930s, racking up billions and billions of pounds of extra debt for our children and grandchildren to pay. As usual, the Labour party has not learned the lesson from that, because its proposal is to borrow an extra £250 billion. In attracting the confidence of the world to invest in this country, the hon. Lady needs to make sure that the economy is sound. In the prospectus that she puts forward, there is nothing that is capable of achieving that.
In the weeks ahead, I hope the hon. Lady will discover that, around the country—from north, south, east and west, and from business organisations to trade unions to our respected scientific institutions—there has been substantial collaboration, based on the Green Paper, which has resulted in some major changes. It is a strategy for the long term—it is right that it should be the strategy for the long term—but it is being backed up by investment now. In the Budget just last week, we saw the announcement of the biggest increase in investment in research and development in this country that there has ever been. The hon. Lady should welcome that because it is being welcomed throughout the country.
With our partners right across the United Kingdom, we will implement this industrial strategy. I hope, when the hon. Lady goes out and talks to businesses and leaders across the land, that she will find that there is great support for this approach and that she will join us in seeking to implement it and to provide the certainty we need in the years ahead.
Order. Just before we get under way, I remind the House that the subsequent business is very heavily subscribed. Secondly, I point out again to the House, as I did on Thursday, that there is a growing phenomenon, I am afraid, of Members turning up late for statements—that is to say, after the relevant Minister has begun the statement—and then expecting to be called. This is in defiance of very long-standing parliamentary convention. So, today, I am afraid, and there are some very capable and assiduous Members involved—no fewer than seven—I am going to say I will not call people who turned up late. Members have really got to get used to looking at the monitor and getting here in time, and if they do not, they lose out. So please do not come to the Chair and say, “Yes, but there is a special mitigating circumstance. I was responding to an email from a long-lost relative” or, alternatively, “I was feeding my budgerigar, and it couldn’t wait.” The answer is, those matters, if they arise, must be put second, and the Chamber first. We will await the contributions of those distinguished and illustrious Members on another occasion.
After the unremitting negativity from Labour, may I say how enthusiastic my right hon. Friend has been—and rightly so—about advanced manufacturing, R and D, science and technology, and pharmaceuticals? What steps is he taking to increase productivity in a different sector that employs over 3 million people in the United Kingdom—tourism and hospitality?
My hon. Friend is absolutely right, and I am grateful for his question. One of the challenges is that we have is to make sure, right across the economy, that we are taking the opportunities to raise the productivity and performance of sectors in which many people are employed. The tourism and hospitality sectors are very important in that. They feature in the industrial strategy as two areas where it is particularly important to work together with firms big and small, as we are doing, to establish training institutions and spread technology so that we can raise their performance to compare with the strongest performance elsewhere in the economy.
I thank the Secretary of State for advance sight of the statement.
We welcome, finally, this overdue industrial strategy. We welcome also the recognition of the grand challenges of artificial intelligence, clean growth, future mobility, and the ageing society—all of which are very important to Scotland. It therefore says everything that there has been no consultation with the Scottish Government nor any attempt to match the Scottish Government’s economic plan, particularly given that the Scottish Government lead in life sciences. How will that working with the Scottish Government be taken forward?
This is not an outcomes-based approach such as we have seen working successfully in Scotland. A plan without knowing its destination is just a plan, and it does not guarantee success. If it did, it would answer the big question on skills. The Secretary of State said that there was no point in having short-term strategy, but it has been pointed out, in terms of the Budget, that the training and learning budget fell by 13.6% per person in real terms between 2007 and 2015. With the uncertainty over Brexit already affecting EU nationals, perhaps he could tell industries where the skills that will be required in the short to medium term will come from.
While we welcome the £7 billion, which is a very big number, for productivity, why, according to the Red Book, does it apparently not come into effect until 2022? Do we not need to address productivity now?
I am grateful to the hon. Gentleman for his questions. Working together with the Scottish Government is very important. On some devolved matters, it makes sense for them to be joined up. Last week, I had the privilege of meeting Keith Brown, the Scottish Government Minister responsible for this area. When the hon. Gentleman gets a chance to read the paper, he will see that there is substantial reference to our close working with the Scottish Government. It is very important that we do that.
On skills, the hon. Gentleman is absolutely right. It is foundational that we should equip our people with the skills that they need to take on the jobs that are being created. He might have missed the fact that we have increased very substantially the number of hours that people are being taught in further education colleges, so as to raise them in line with the best in the world. That is a very important contribution to this.
On the extra investment that the Chancellor announced, the national productivity investment fund is to be further extended to 2022. That is why the figure that he announced was for that particular year.
I congratulate the Secretary of State on this document. The problem with Labour Front Benchers is that they think it is all about money. Money is important, but it is how and where we spend it that matters the most. We need an industrial strategy that is bold, realistic about the failings, and has a huge vision. This document has that. Will he commit to making sure that he continues to work with British business to put this excellent strategy into action?
I am grateful to my right hon. Friend, not least for her excellent work as a Minister in the Department for Business, Innovation and Skills in laying the foundations for this work, which is of benefit to every single part of the country. One of the mistakes that was made over many decades by successive Governments was not to recognise the importance of local economies in creating the right conditions for businesses to succeed. That is prominent in the strategy, and I know that she has been a particular champion of it.
Industrial strategy, particularly in sectors such as the automotive sector, depends on a model of just-in-time delivery. One concern of that sector, in particular, is that things will be held up at ports if we leave the European Union and the customs union. What assurances can the Secretary of State give businesses that we will have frictionless as well as tariff-free trade after we leave the European Union? Without that, productivity will deteriorate even further.
The hon. Lady is absolutely right about the importance of making sure that we can continue and, indeed, expand our trade, not just with the European Union but with the rest of the world. She is absolutely right that the model of the automotive sector and many other sectors requires the availability at very short notice of components and products. That is why it is very important that the deal that we negotiate should give us the ability to trade without tariffs and with the minimum of friction.
How confident is my right hon. Friend that we can measure productivity accurately?
My right hon. Friend asks a characteristically acute question. It is true to say that some of the measures of productivity do not do justice to the importance of the issue. We would not, for example, want to substitute our model of very high employment for the model of some other countries, where there is very high productivity among people who are employed, but a large number of people unemployed. That would be the wrong thing to do. We propose in the strategy to set up an independent council, which will set a baseline against which our performance can be judged independently and which will report to the House. I think that that is the right way to apply rigour to the question that he raises.
I welcome the statement, albeit that it has taken the Government two and a half years to conduct what is, essentially, a rebranding exercise. Does the Secretary of State agree that the essence of improving productivity is skills? If he is going to reverse the absolutely catastrophic decline now occurring in apprenticeships, he should go back to the model that he and I worked on. It would have increased the number and quality of apprenticeships and scrapped the apprenticeship levy, which has been appallingly maladministered.
I had hoped that the right hon. Gentleman would give a more enthusiastic welcome to some things, which I thought he would be in favour of, not least the substantial increase in investment in research and development. When he was Secretary of State, we managed to maintain the level, but this is the biggest increase there has ever been, and I thought that he would welcome that.
Apprenticeships are very important. We have made great strides in improving the number and quality of apprenticeships. The new system is bedding in, and I think most observers recognise that the initial figures are not a guide to the future. The right hon. Gentleman is absolutely right that we want to encourage the take-up of more good apprenticeships.
Unlike my former Secretary of State, the right hon. Member for Twickenham (Sir Vince Cable), may I welcome what the Secretary of State has said, which is both insightful and forward looking? In the light of that former relationship, I encourage him to be willing and patient in dealing with collaboration, which is something that the right hon. Gentleman and I had to deal with.
May I ask my right hon. Friend about a local question, which also concerns life sciences? Hertfordshire has the highest life sciences sector concentration of almost any county. May I therefore ask Ministers to involve our businesses, our local enterprise partnership and our local authorities closely when it comes to life sciences—welcome as it is that investment has been announced today, albeit elsewhere?
I am grateful to my hon. Friend for his welcome for the White Paper. He will see that one of its important features is the recognition that clusters—that is to say, businesses in the same sector all reinforcing each other—can lead to excellent performance.
On the basis of this strategy, substantial new investments have been committed in the life sciences sector, but these are the first in a pipeline of new investments that will follow all across the country and in every part of the United Kingdom, justifying the attention and the work that we have been engaged in—led by Sir John Bell, the eminent scientist—to make sure that we are the go-to place in the world for anyone with an interest in the future of the life sciences.
The publication of the strategy is welcome, but I have two asks of the Secretary of State. First, for this to succeed in the long term, it has to be able to survive changes of Government. Is it not about time that we set up a cross-party commission to build the political consensus needed to produce further iterations of the strategy? Secondly, let us be honest and recognise that the biggest institutional barrier to what he is proposing is the Treasury. Treasury orthodoxy has never properly got behind the concept of an industrial strategy. Is it not time to change his Department into a proper Ministry of economic reform that takes on all non-fiscal economic policy, across the Government, and which is equal to, not subordinated to, the Treasury?
The hon. Gentleman makes an intriguing set of suggestions. Let me start by completely agreeing with him that it is right to establish and support a strong consensus on the long-term commitments that we need to make in this country. It seems to me that other countries around the world have benefited from having a shared commitment to policies and institutions that investors know are going to endure, and that is the approach we intend to take. That is precisely the reason why we have had such an extensive consultation, involving all parts of the country and all parts of the economy—and across parties. He is right that the best way for the strategy to endure is for it to have the commitment and involvement of people who have an interest in the future success of the United Kingdom.
This is true across Government, too. The hon. Gentleman is right to say that in times past—in decades past—the finance Ministry has regarded itself as precisely that, but I think the importance of accepting that our national prosperity requires business to succeed in all parts of the country is recognised. Anyone who looked at the Budget last week and saw the commitment made by the Chancellor to, for example, research and development, will recognise that this is a whole-Government commitment, but the hon. Gentleman is absolutely right that it also needs to embrace the whole country.
On the point made by the right hon. Member for Twickenham (Sir Vince Cable), it is worth noting and putting on the record that we have 900,000 apprentices at the moment, which is the highest ever figure in our island’s history.
I strongly welcome the industrial strategy. Does my right hon. Friend not agree that a key part of it is supporting further education and skills, including through institutes of technology? An important example is the multimillion pound investment in the new Harlow College skills academy at Stansted airport, which was visited today by my wonderful hon. Friend the Minister for Climate Change and Industry.
I am grateful to my right hon. Friend for his comments. He worked very hard to achieve the success in the number of apprenticeships that we now have. He is right in what he says about Harlow College. That is a very good example of how working closely with a big local employer—in this case, Stansted airport—can make sure that the jobs available through the success of that airport and its associated industries can be taken up and spread among people in his and neighbouring constituencies. It is doing a fantastic job—I know my right hon. Friend was thrilled by the Minister’s visit today—and I am pleased to say that it features very strongly in the industrial strategy.
Does the Secretary of State seriously think that it is possible to convince the country that a Tory Government—I repeat, a Tory Government—have got the capacity to introduce a decent industrial strategy? In 18 Tory years while I was in the House, they closed down most of the shipbuilding industry, they got rid of a lot of the steel industry, they closed every single pit and now they are buying 40 million tonnes of coal from countries we do not even trust. These are the actions of a Tory Government, and—remember—let us stop this nonsense about trying to tell the people that unemployment is now lower than it was after a Labour Government, because during the Labour Government after the second world war, it was down to 2.2%, or 440,000, and when it hit 1 million, Ted Heath was in government. What a lousy bunch!
What I say to the hon. Gentleman is that every time there is a Labour Government, it is a Conservative Government who have to reverse the chaos caused and revive the economy. To give him an opportunity to calm down and reflect on the policies set out in the strategy, let me make him a present of this copy of the White Paper, which I hope he will find inspiring reading. I am sure that he will look at the policies in detail and, when he comes back for the next Question Time, bring himself to commend them.
I commend my right hon. Friend’s statement. Many of us know how hard he has worked on the strategy, and how widely he has engaged. I invite him to use this opportunity to reaffirm the central role of Britain’s universities in future growth and technological advance. I invite him to visit my constituency and see what Bournemouth University has done to create an incredible new tech sector, resulting in Bournemouth being voted the fastest growing digital economy in the United Kingdom.
I am grateful to my hon. Friend for his comments. The role of universities is absolutely vital. They have worked with us very closely on the development of the strategy. They are central to the local economy in almost every part of the country, and not just in educating the population—local people and those who travel to study—but in the research and leadership they offer. I would be delighted to visit Bournemouth’s excellent university with my hon. Friend, to congratulate it and to discuss how we can take its success forward in the local area.
The Secretary of State answered my hon. Friend the Member for Leeds West (Rachel Reeves) elegantly, but all he really did was restate the premise of her question, so let me give him another chance. Page 202 of the White Paper refers to a
“programme that will target areas where businesses need to improve to match the best in Europe.”
The problem with competing with businesses in Europe is that they will be members of the single market and, according to the Government, we will not. Has he made representations to the Prime Minister, asking her to change her position?
I am interested that the hon. Lady has got to page 202 already—that is high productivity. Of course, as the White Paper makes very clear, we want not only to continue our international collaborations, but to deepen them. That is very important, because the most productive industries are international. A big part of our negotiations, which she knows full well are continuing, is focused on getting a deal that is not just in our interests, because exactly the same logic applies to our European partners; they have no more interest than we do in interrupting those deep and successful relationships. That is why we have made that commitment.
I welcome the industrial strategy, as a proud midlands MP representing a constituency that played its part in building our reputation as the workshop of the world. Will my right hon. Friend please say a little more about how we will go further in addressing some of the productivity gaps between London, the south-east, Oxford and Cambridge and our regions? May I suggest that a great way to do that would be to build an institute of technology in Redditch?
My hon. Friend makes an excellent proposal. Let me choose one of the aspects of the industrial strategy that is relevant: the importance of local leadership with the powers to make a difference. She is fortunate as a midlands MP, as we are fortunate in this country, to have Andy Street as the new West Midlands Mayor, who is already playing such a significant leadership role in the area. As my hon. Friend will know, last week, the Budget set out significant investment in the region’s transport system in order better to connect those areas that have not been well connected to Birmingham and other towns and cities in the midlands, which we know internationally is key to raising productivity.
I absolutely applaud the industrial strategy for saying that we need to build on our strengths. One of our great strengths is our foundation industries, such as steel. Will the Government get on with energetically pursuing a sector deal with the steel industry, so we can add it to the other four deals he announced today?
I will indeed. The Minister for Climate Change and Industry—there is no more energetic person than the Minister of State—met the steel sector today to pursue those discussions. The sector features in the White Paper published today and the hon. Gentleman knows that I agree with him on its importance. I am full of enthusiasm for that being brought to a conclusion.
I welcome the Secretary of State’s emphasis on creative industries and construction, both of which are large employers in my constituency. Does he agree that there is a real risk of inflationary pressure in the construction sector, particularly if we are to meet our ambitious housing targets; and that in the short term, as we leave Europe, that will mean a need for continuing immigration and, in the longer run, for encouraging more young people into this industry, which is often very well rewarded?
As my hon. Friend knows from the Budget, we are committed to a big expansion of housebuilding. It is therefore important to ensure we have the skills and the workforce to take up those opportunities. One of the prime areas of focus in the construction sector deal is investment by the sector in training the next generation of construction workers, so we can avoid precisely the problem he describes.
Does the Secretary of State recognise the urgency of reaching a decision on our future participation in successors to Horizon 2020? Does he also recognise that further public investment will be needed to reach 2.4% of GDP on research and development spend? How will he ensure that that public investment is spent around the country, so that everyone benefits from it?
I am grateful to the right hon. Gentleman for his questions. He is right that international co-operation in research—not just with other European countries, but around the world—is the foundation of our success. Typically, Nobel prizes are these days awarded to teams representing many different countries. We are very clear in the strategy that we want to continue and extend the joint work we do with other countries. On the increase required, he will see in the strategy document that it is to be allocated by our scientific community, but with a particular regard to how we can make sure that clusters of excellence in research all around the country can benefit from the increased funding.
I commend the Secretary of State for his very positive statement. Does he agree that the tourism industry—worth £127 billion, 9% of GDP and vital to my constituents in the glorious sunshine coast of Clacton-on-Sea—should be at the forefront of any industrial strategy, as it is a powerful way forward out of recession and post-Brexit?
I do indeed. Many of us have had the pleasure of visiting Clacton and Frinton, whether as day-trippers or in some other capacity, in recent years and look forward to doing so again. My hon. Friend is absolutely right that tourism is a very important industry. The sector has in some cases been associated with lower levels of pay than other areas. Working with the sector, we want to see how we can invest in improvements in productivity, so it can be a much better paid sector than has been associated with it in the past.
Given the important chapter in “Industrial Strategy” about devolution, will the Secretary of State agree to meet the 17 council leaders in Yorkshire from all parties who are advocating a “one Yorkshire” devolution settlement, so they can work in partnership with the Government to deliver an effective industrial strategy for the county?
I would be delighted to do that. It is a mark of the strategy that it points to the success of decisions made locally and having clear local leadership. There have been, and continue to be, discussions in Yorkshire on the best arrangement, but I am very happy to meet the hon. Gentleman and his colleagues.
I welcome the strategy. Siemens, which has a pioneering digital factory in Congleton, is one of the companies that has led on the recent “Made Smarter” review. Does the Secretary of State agree with the principles behind the review, and that priority should be given to upskilling 1 million industrial workers to enable digital technologies to be successfully exploited, and so put the UK at the forefront of the fourth industrial revolution?
I do indeed, and I would like to put on the record my thanks to Professor Jürgen Maier, the head of Siemens in this country, and his team for producing that very important report. It is a good example of how digital technology affects almost every sector in the country. He has recommended a series of steps that we will implement in the months ahead and that will be of great benefit to the whole economy.
The Secretary of State will recognise that further education and apprenticeships are fundamental if towns such as Rochdale are to be part of the productivity change he wants to achieve. Will he, then, consider Greater Manchester’s long-held demand that the post-16 education and training budget be devolved to Greater Manchester?
Yes, the success of the devolution arrangements in driving forward local economies has been considerable, as the hon. Gentleman, being the former Mayor, knows, and we want to see more of it. He is right to draw attention to the particular challenge—but also opportunity—of having towns within city regions place a particular focus on how they can be helped to play a bigger role in the rise in productivity now being experienced with the success of some of these devolved arrangements.
I thank the Secretary of State for his statement and for including the fourth industrial revolution as one of the key drivers of his industrial strategy policies. Will he continue to support small and medium-sized enterprises such as Havant-based 3D printing business Dream 3D, which is already using new technologies to create new jobs and improve productivity?
I will indeed. I am grateful to my hon. Friend for his tireless work in chairing the all-party group on the fourth industrial revolution and promoting the importance of embracing the new technologies of the future. He is absolutely right that there is a big opportunity for small and medium-sized businesses in particular. We have succeeded in having some of our biggest firms comprehensively embrace new technology, and the strategy points out some areas in which we can work with small and medium-sized businesses to diffuse that across the economy more generally.
The key to any successful industrial policy must be low and competitive energy costs. Energy costs in the United States have halved, and the reductions in China and India have been similar, but ours have gone up. How will the Secretary of State change that damaging trend?
The industrial strategy is very clear and makes that precise point. We have a substantial report from Professor Dieter Helm, the energy economist, looking at how we can meet our carbon reduction commitments but at the minimum cost to consumers, whether they be domestic or industrial consumers. I hope that the hon. Gentleman will have a chance to look at the report, which we will be responding to shortly, because our ambition is as he describes: to minimise the energy costs facing businesses.
I particularly welcome the commitment in the document to local industrial strategies, especially the reference on page 226 to the Greater Grimsby project board, of which I am a member. It is a private sector-led board. Does my right hon. Friend agree that that is the best way forward for developing strategy, and will he commit to meeting the board in the not-too-distant future?
I had not previously been aware of the hon. Gentleman’s membership of that important board, but I am now.
I was aware of it, and I am delighted that my hon. Friend asks this question. There is a big opportunity for Grimsby, Cleethorpes and the surrounding area to participate in the revival that this industrial strategy offers. The board, which involves the private sector and people with a big commitment to Grimsby and the area, is featured for the particular reason that its leadership is already achieving results, and we are very keen to push that forward.
The Secretary of State will be aware that the best ceramics in the world are made in Stoke-on-Trent. I am partially heartened to see, on page 224 of this illustrious document, a reference to its ceramics industry. However, the Secretary of State has previously been very supportive of a sector deal, and the industry was hoping that details of it would be included in the industrial strategy, but they are not there. May I press him on that? What support can the ceramics industry expect from the industrial strategy, and would he be willing to meet representatives of the British Ceramic Confederation to talk about what support we can secure now, rather than waiting for the next round of deals to be published?
I share the hon. Gentleman’s enthusiasm for Stoke-on-Trent and its leadership in ceramics. In fact, just last week I was talking to Laura Cohen, who leads the British Ceramics Confederation; and Abi Brown, the deputy leader of the city council, is a huge champion of the industry. As the hon. Gentleman pointed out, it features in the industrial strategy, and I think it is one of the sectors that have a stellar future. For instance, ceramics technologies can be applied to new uses in relation to medical and other devices. That is why the prospects of a sector deal are so exciting, and it has my full support and commitment.
I welcome my right hon. Friend’s statement. A number of Members on both sides of the House have mentioned the importance of collaboration. If the industrial strategy is to succeed, it will require cross-Government effort to deliver the five foundations of productivity. Will my right hon. Friend outline the measures that have been taken to ensure that the strategy is genuinely embedded across Whitehall Departments?
My hon. Friend has made an excellent point. Given that different industries are coming together—for example, the energy sector and the motor industry share an interest in battery storage—it makes no sense for the Government to operate in silos. Part of the purpose of the strategy is to ensure that Government policy in all the different Departments pulls in the same direction to support the industries of the future, to help them to create good jobs, and to improve the earning power of the country.
I find myself in the unusual position of agreeing with Lord Heseltine, who suggested that the best strategy for industry in the United Kingdom might be not to leave the European Union. However, we are where we are.
The aerospace sector has experienced some difficult times recently. A great many orders have gone abroad, particularly to the United States, with no reciprocation. What will the Secretary of State do to stand up for a sector in which we have a world-leading position, given that we do not have the relationship that we should have with some of our major partners?
We do stand up for the aerospace sector. It is one of the most successful sectors in terms of joint working, both with the firms in the sector and with the Government. We have a good record of working together. As for ensuring that we obtain orders in this country, there is a big role for us all to play in spelling out the benefits to other countries of products and services that are made in and provided from this country, and I hope the hon. Gentleman will join me in doing that.
My right hon. Friend is a great ally of Teesside, and there is so much in the strategy document that is welcome, whether it relates to steel or to the Heathrow northern logistics hub. However, I want to focus briefly on carbon capture and storage. The Teesside Collective is keen to make progress on it. When will we know how we can go about bidding for the £15 million of feed funding that we are seeking?
I am grateful to my hon. Friend for what he has said. I particularly commend the Mayor of Tees Valley, Ben Houchen, who was instrumental in, for instance, the proposals for the regeneration of former sites of special scientific interest that has been so well received on Teesside. I am aware that my hon. Friend initiated a successful Westminster Hall debate on this subject. As he knows, we want to get on with testing technology for carbon capture, utilisation and storage, and Teesside offers a particularly attractive environment for that because of the connections between the different users and suppliers in the area, but there needs to be a competition that can lead to an award. I know that my hon. Friend is proceeding with that, and I know that Teesside will be very well placed.
Page 218 of the White Paper shows that, after decades of economic misrule from Westminster, gross value added per hour worked in central London is 150% of the UK average, while in Wales it is only 81.4%. Therefore, a litmus test for the Secretary of State’s strategy should be how it tackles geographic productivity and wealth inequalities. What benchmarks is he using to determine success or failure in addressing those challenges?
The hon. Gentleman is right to raise the issue. The productivity challenge that we face is about disparities. We have some of the most productive people and places in the world, but we have other places that are behind that level. The relentless focus of the industrial strategy is therefore on how we can close that gap by raising the earning power of those who are following. He will see that Wales—its industries and training and education system—is a prime area of focus throughout the strategy. I was pleased to work with Ken Skates, the Minister in the Welsh Assembly Government, to co-ordinate our work precisely to close that gap.
I am sure the Secretary of State will agree that a key test for the industrial strategy will be how it spreads prosperity to all parts of the UK. Does he agree that a good way of doing that in Torbay would be to agree the bid for an institute of technology to be built in Paignton?
My hon. Friend makes another ingenious bid for the area. The history of technology in Torbay and the firms that have located there—I enjoyed meeting some of them on a visit with my hon. Friend a little while ago—provide particular reasons why it is an attractive location for such an institute.
To improve growth and prosperity in this country, we need to ensure fair transport investment in all parts of the country. I have just received a written ministerial answer showing that the disparity in investment between the south and the north has widened since 2012. What is the Secretary of State going to do to get the Department for Transport on board with his strategy?
When the hon. Lady studies the White Paper in detail, she will see that one of the proposals is to look at the dynamic effect of investments—how a transport investment can transform the prospects of an area. That can be taken into account, we propose, in making transport decisions in the future, which will be of benefit to her constituents.
I, too, welcome the drive to up productivity with its links to the clean growth strategy. Does my right hon. Friend agree that this approach to upping productivity is one of the best planks that we can put in place for continued prosperity and sustainability? Would he like to pay a visit to Taunton Deane, to look at the opportunities provided therein for some of the funding to come our way? We must not forget the south-west, and we have a great opportunity on our new Nexus business site.
I would be delighted to visit my hon. Friend’s constituency. As she points out, not just in this country but all around the world economies are becoming cleaner and greener, and if we can establish leadership in the research and development and, critically, the translation of those discoveries into industrial products and processes, we can benefit substantially. We are already doing that in the offshore wind industry and others. It is a world full of opportunities for more of that, and of course the south-west has a particular role to play in that.
The Secretary of State’s document rightly stresses the importance of transport infrastructure and digital infrastructure, yet when it comes to Scotland, his Government have just imposed a £600 million cut to the future rail investment programme and to date we have been underfunded in terms of superfast broadband. Will he confirm that Scotland’s funding from the £740 million digital infrastructure programme and the £400 million fund for electric vehicle charging will be allocated on need, which covers Scotland’s landmass and geography, and will not be based on arbitrary population or other measures?
Of course we recognise that, and I have made the point throughout our discussions this afternoon that every place requires a consideration of its particular challenges. The geography of Scotland means that different decisions will be appropriate there compared with more urban parts of England, for example. We completely recognise that, which is why we are setting out a localist approach to ensure that we make the right investments for the right places.
I congratulate the Secretary of State on the industrial strategy, and on announcing more investment in science and research than any Government have done in the past 40 years, particularly in advanced technologies such as quantum technologies. Anyone who wants to see gravity sensing need go no further than Chelmsford. Does he agree that investing not only in blue skies research but in near-to-market innovation is key to ensuring that bright ideas happen and stay in Britain?
I completely agree with my hon. Friend. Making new discoveries is something that we have a deserved reputation for, and we must not take that for granted. We must reinforce that success. Where we have been less successful, however, is in translating those discoveries into practice and, in particular, in creating manufacturing jobs here. That is why medical manufacturing has an important role to play in the life sciences sector deal, and I am thrilled that on the basis of that industrial strategy, major investments have been announced today from the American company MSD and the German company Qiagen, to reinforce the success of that important sector.
How many pages of the Secretary of State’s strategy deal with the immense value of tidal power? It is non-carbon, it is green, it is British, it is eternal in its duration and, unlike other renewables, it is entirely predictable. Will he temper his manic enthusiasm and optimism by reading the National Audit Office and the Public Accounts Committee reports on Hinkley Point, which say that it will cost us £30 billion in subsidies that will be paid for by the poorest consumers?
I am not going to temper my enthusiasm; quite the opposite, in fact. We have many opportunities in clean energy, with many breakthroughs in prospect. As was pointed out earlier, we have to ensure that the cost to consumers is taken into account, and that is the judgment that we need to make when it comes to projects such as the one the hon. Gentleman has just described.
The Secretary of State is welcome to come and talk industrial strategy in Worcestershire any time. Can he confirm that the industrial strategy is intended not to be a 254-page document that will sit on a shelf gathering dust but a deliberate statement of strategic intent and policy that will change over time? Will he tell me how it will be refreshed and changed?
My hon. Friend makes an important point. The purpose of the strategy is not just to inform the decisions taken by Government Departments—although it is important that they should be consistent with it—but to give confidence to investors so that they can predict the direction of policy. We have seen that today in the life sciences sector. It is important that the strategy is kept refreshed and up to date, and one of the proposals in the paper is to establish an industrial strategy council, which will be an independent body that can report to the House and others on progress and ensure that we are agile enough to keep up with developments in technology.
As the Secretary of State knows, the Vauxhall car plant in my constituency is facing a huge challenge for its survival, so the focus on the supply chain in the automotive sector, on page 202 of the strategy, is to be welcomed. In order to be a success, however, we will need more than good intentions. Will he tell us what financial incentives will be available to encourage suppliers to relocate to the UK?
Part of the sector deal with the automotive sector will do precisely what the hon. Gentleman suggests—that is, look at the supply chain and create opportunities, backed by the industry and the Government working together, to make it easier for suppliers, including small suppliers, to locate in this country. He is bang on the money: that is what was proposed by the sector and it has been agreed in the sector deal. That shows the value of this strategic approach, with the Government and the sector working together to address some of the known opportunities.
From speaking to businesses and investors, Brexit is of course driving some uncertainty, but when they speak frankly, they say that their greatest fear is a hard-left Labour Government and the investment-destroying, punitive taxation that would come with them. What role is played in the industrial strategy by low, simple taxes and by great incentives, such as the world-class research and development expenditure credits?
My hon. Friend makes an excellent point. Everyone should be seeking to build confidence in the UK economy. We make it clear in the industrial strategy that some of the UK economy’s strengths are that we are an attractive place for business to locate, which is why we are one of the biggest places for inward investment around the world, that we create more new businesses than any other country, that we are a competitive place with no sheltering for incumbents, and that we are a place of low taxes in which enterprise is rewarded. Those things are foundational to our success, and I cannot understand why any party would want to set itself against that.
The Secretary of State has already praised the wonderful ceramics industry, which has its home in Stoke-on-Trent, and the work done by the British Ceramic Confederation for the past two years on developing an industrial strategy. It is great to see a photo of my sector on page 224 of the White Paper, but we really need a strategy for Stoke-on-Trent, so will the Secretary of State meet me and my colleagues on the all-party parliamentary group for ceramics, which I chair, to discuss how we can move that forwards and develop what my constituency and city so desperately need?
I am always keen to meet people from the ceramics industry and from Stoke-on-Trent and the surrounding area. It is a fantastic industry for the future as well as the present—great strides are being made. It is an endorsement of the approach in the Green Paper of asking whether we should have sector deals that there was such an emphatic yes that some sectors, including ceramics, submitted their own proposals, and I am keen to take them forward.
I am sure that the Secretary of State is aware that I chair the all-party parliamentary group for the coalfield communities—if he was not, he is now—and the group has done significant work on trying to look at the regeneration of such communities. In relation to the White Paper, how does he intend to bring jobs and investment to those communities, which have suffered over successive generations in terms of job losses, economic growth and, indeed, health outcomes?
The hon. Gentleman makes an important point. The White Paper contains a substantial section on the importance of local places and the role they can play in reviving their economies. It looks in particular at establishing local industrial strategies that are not only about the big cities, but about smaller towns and communities. The strategy presents an opportunity to former coalfield communities and others to play a big role in helping to drive up their future prospects.
Points of Order
Order. There is a flurry of points of order—the insatiable curiosity of Members knows no bounds. I call Dr Julian Lewis.
On a point of order, Mr Speaker. You will recall that I raised a point of order on 23 October about the fact that the new National Security Adviser, Mark Sedwill, had declined to give evidence to the Select Committee on Defence about the ongoing capability review, saying that that was a matter for the Joint Committee on the National Security Strategy. Mr Speaker, you will have seen from Defence questions—others may have seen this from a major article in The Daily Telegraph today—how crucial the capability review is for defence, even though Mark Sedwill said in his letter declining to come to the Defence Committee:
“Because the main decisions on defence were taken during the 2015 SDSR, this review is not defence-focused.”
I beg to differ. Given that the then National Security Adviser, Kim Darroch, and his deputy, Julian Miller, gave oral evidence to the Defence Committee on 11 September 2013, what powers does the Committee have to instruct relevant witnesses to appear before us when both the substance of the matter and the precedent are in favour of our wishing to take evidence from a witness such as the National Security Adviser?
I am grateful to the right hon. Gentleman for his point of order, of the detailed content of which I had no advance knowledge. However, I make no complaint about that whatsoever.
I listened carefully to what the right hon. Gentleman said, and I would respond as follows. First, in my judgment, it is not principally for Mr Sedwill to be the judge of which Committee has competence—I use the term “competence” in the technical sense—in respect of this matter, or indeed to conclude that only one Committee is involved. That is a matter about which other people will have a view, not least parliamentarians. I would very politely suggest to the National Security Adviser that he should be sensitive to the views of senior colleagues.
Secondly, it is a matter of established fact—not least testified to by the exchanges at Defence questions this afternoon—that questions relating to the subject matter that the right hon. Gentleman describes are in order. If such questions were not in order, they would not have been accepted as oral questions by the Table Office, but they were in order, and therefore so were supplementaries appertaining to those tabled questions. That therefore gives the matters a relevance that the National Security Adviser, with the very greatest of respect, is in no position to deny. Thirdly, I would say it is a well-established principle that if a Select Committee requests that a witness gives evidence, in almost every case that potential witness accedes to that request.
Finally, I simply say to the right hon. Gentleman—I do not know whether it is relevant in this case—that I know of an instance in which a potential witness indicated that he did not believe he had much to say that would add to the deliberations of the Committee in question. However, he was advised that, whether or not he thought that what he had to say would greatly assist the deliberations of the Committee, the Committee nevertheless wished to see him. It might even have been the case that Committee members wanted to say things to him, almost irrespective of whether he wanted to say things to them.
All in all, I therefore think there is a compelling case on this matter. There are powers available to Committees to report a refusal to appear to the House, and thereafter the matter can be escalated. I very politely suggest that it would be highly undesirable for such a procedure to be needed in this case.
In the light of all those considerations, I hope the right hon. Gentleman’s efforts to secure the attendance of the National Security Adviser will now bear fruit. Moreover, I have known the right hon. Gentleman for 34 years as of last month, and while I am sure that the National Security Adviser is an extremely formidable fellow, I would say to him, through the right hon. Gentleman and through the medium of the House, “Give up the unequal struggle and just appear.”
Order. I am saving up the hon. Gentleman.
On a point of order, Mr Speaker. I seek your advice on correcting the record. I gave a speech in the Budget debate on Thursday in which I stated that the Foxhill housing development in my constituency delivers no change in the number of homes for social rent. However, I misspoke; the fact is there will be a loss of 99 homes for social rent. I also seek your advice on how to receive confirmation from the Government that reducing the number of homes for social rent in Bath, or in any city, is in line with Government policy, as it appears in a letter I received from the Minister for Housing and Planning on 2 November 2017?
I thank the hon. Lady for giving me notice that she planned to raise this matter. As she concluded her effort to do so, there was, if I may say so, a puckish grin on her face, as I think her attempts on this occasion have been mildly cheeky—I put it no more strongly than that.
The hon. Lady said that she wanted to put the record straight. In so far as she was seeking to do so, she has now done so, and it is there for the people of Bath and the organs of popular dissemination in Bath, namely the media, to see that she has done so. Colleagues will have noticed her prodigious efforts to do so.
On the matter of seeking either my advice or a ministerial confirmation, I have to say that this seems to me to be more a point of argument than a point of order for the Chair. However, I can advise her that a number of avenues are open to her if she wishes to press the Government on this matter. My particular advice to the hon. Lady, who is a new Member and an exceptionally assiduous one, is that she should toddle the very short distance from the Chamber to the Table Office, where she can seek the advice of the officials therein on which of those possible avenues might be thought to be the most profitable.
On a point of order, Mr Speaker. I, too, would like to seek your advice. On 23 November, the Secretary of State for Education and Minister for Women and Equalities misled the House in her response to my hon. Friend the Member for Rutherglen and Hamilton West (Gerard Killen). She referred to a joint report by the Runnymede Trust and the Women’s Budget Group, “Intersecting Inequalities: the impact of austerity on BME women in the UK”, but it does in fact take into account the impact of the national living wage, and of spending cuts to services such as childcare. The Minister also cited the Institute for Fiscal Studies, but its quote came from a report that it had produced in 2011 and does not refer to the WBG and Runnymede Trust report. How can I establish whether the Minister was deliberately misleading the House, or if she just does not know the damage of the Budget to women, particularly black, Asian and minority ethnic women?
I am very grateful to the hon. Lady for that. I blame myself, because I was so in thrall to the eloquence of her flow, and the flow of her eloquence, that I did not interrupt as quickly as I should have done to say that she certainly should not—and I have to believe would not—accuse a Minister of deliberately misleading the House. She can accuse a Minister of inadvertently misleading the House, but no more than that.
The hon. Lady nods in acquiescence to my point and I will leave that matter there.
The hon. Lady is obviously dissatisfied and she has put her dissatisfaction on record—indeed, she has done so for a second time as, if I remember rightly, she had a go on Thursday at topical questions and received a similar answer. The hon. Lady is nothing if not consistent and persistent. I also say to her that what Ministers and others say in the House is a matter for them; it is not for me to act as the corrective to Ministers who might be thought to make a mistake, and nor am I a policeman in such matters. The hon. Lady’s dissatisfaction will have been noted by those on the Treasury Bench and I am sure she will find other parliamentary avenues to pursue this matter—there is nothing to stop her doing so over and over and over again, although I suspect that she will require no encouragement from me to do so.
On a point of order, Mr Speaker. You may have noticed that in the past half hour the Department for Exiting the European Union has finally given in following the resolution of this House of Commons that insisted that the 58 Brexit impact assessments—the Government call them “sectoral analyses”—should be published to the Brexit Committee. This is an overdue moment, but I seek your guidance, because these sectoral analyses cover many, many areas of interest to all Members of the House, whatever Committees they serve on. With no disrespect to members of the Brexit Committee, I wonder what you could do—perhaps make representations to the Chair of the Brexit Committee or to the Government, or to both—to ensure that all those sectoral analyses can be published and made available to all hon. Members. We are talking about aerospace, agriculture, the automotive sector, chemicals, construction, defence, the creative sector, financial services, pharmaceuticals, telecoms, tourism and manufacturing. These are issues that the whole country deserves to know about.
I am extremely grateful to the hon. Gentleman for his point of order. As he says, publication to the Select Committee has taken place today. I had anticipated that it would, because obviously conversations about this matter took place between the Secretary of State for Exiting the European Union and the Chair of the Brexit Committee, the right hon. Member for Leeds Central (Hilary Benn), and conversations took place that included me. I had expected that the analyses would be released no later than today and am pleased that that has happened.
I note what the hon. Gentleman says about the extent of the interest in the matters covered by the sectoral analyses. My response is to say to him that publication is to the Committee and the matter is in the hands of the Committee. It is perfectly open to the hon. Gentleman —and, indeed, to other Members similarly interested—to approach the Chair of the Select Committee and to seek disclosure. I must emphasise, however, that at this stage it is very much a matter for the Chair of the Committee, although an approach to him is in no way improper—indeed, not least on the back of this point of order, it is very much to be expected. The right hon. Member for Leeds Central is a very experienced Member of this House, as well as an unfailingly courteous one, and I rather doubt that he would be surprised to be so approached.
Further to that point of order, Mr Speaker.
The right hon. Gentleman is not hailing a taxi, but nevertheless I am happy to hear his point of order.
Mr Speaker, you are clearly someone with great experience of the procedures in this House. Do you feel that there would be a public interest defence if the Chair of the Select Committee decided to make the information available to Members of the House generally so that we could all access the reports?
I am slightly taken aback by the right hon. Gentleman’s inquiry. My response is that the need for a public interest defence, as he put it, would not arise because publication would be covered by parliamentary privilege. In the event of disclosure and there being a disagreement about the wisdom of that disclosure between Members, between the Executive and the legislature, or between the Executive and parts of the legislature, there could indeed be argument, and the Chair of the Committee or his colleagues—or both—could be open to criticism, but no need for a public interest defence would arise. I hope that that is helpful to colleagues.
Universal Credit (Application, Advice and Assistance)
Motion for leave to bring in a Bill (Standing Order No. 23)
I beg to move,
That leave be given to bring in a Bill to reform the Universal Credit application process; to make provision about advice and assistance for claimants, and arrangements for payments; and for connected purposes.
I welcome the Chancellor’s removal of the arbitrary seven waiting days, which reduces the waiting time to five weeks, but the Department for Work and Pensions’ own data shows that a quarter of all claimants are currently waiting longer than six weeks. If universal credit is paid monthly because it is meant to be like a salary, surely the maximum waiting time should be a month. If the DWP cannot deliver that, the roll-out of universal credit should be paused. It must be recognised that 58% of universal credit claimants are paid fortnightly or weekly and therefore do not have a monthly salary to see them through the waiting time. Many work on zero-hours or low-hours contracts and are unlikely to have any savings to fall back on. The impact has been demonstrated by the Trussell Trust’s report of a 30% surge in the use of food banks in universal credit roll-out areas.
Universal credit arrived in my constituency on Budget day—last Wednesday. That means that many of my constituents will be facing weeks five and six at Christmas and new year. It means that they will go into the festive season and the hardest part of the winter without having received their universal credit. I welcome the increase in the advance loans to 100% of entitlement, but I have to ask why, if that can be worked out so quickly, it takes so long to deliver universal credit. I also welcome the fact that the payback has been stretched to a year, but it is important that claimants do not have to jump through hoops and that that is the routine time, so that paying back advanced loans does not generate further financial stress.
The Bill proposes that the Government follow the options that will be available from the Scottish Government in the form of twice-monthly and direct landlord payments. Claimants should not have to jump through hoops for those; they should simply be able to choose their option, because they best understand their own circumstances.
The Bill is an attempt to solve some of the administrative problems, particularly the fact that the circumstances in which a claimant lives are taken into account only on the one assessment day every month, with changes applied to the entire month regardless of how short a time they actually apply. If a child left home the day before assessment day, it would therefore be assumed that they had not been there for the whole month, meaning that the benefits would be reduced. Claimants complete their logbooks online. Computers have calculators, so how hard is it to work out to what proportion of the month changes of circumstances apply?
Similarly, self-employed people face a minimum income floor of more than £1,100. If they earn more, their universal credit is reduced, but if they earn less, it is not increased. Such an approach does not take account of the variability of many self-employed professions, the drop in people’s income if they choose to have a short holiday with their family in the summer, or the effect of the four extra public holidays at Christmas and new year.
There is a need to find a replacement for the award letter to give a detailed breakdown of universal credit components. Some banks have been advised by their risk departments not to lend against universal credit at all. Many working people will now be receiving tax credits through universal credit, but that income may not be counted towards getting a mortgage. Those who are looking for loans may also be refused, and that could drive them into the arms of payday lenders and loan sharks. Trying to tackle this matter could also help to re-establish automatic passporting to other benefits, particularly free school meals. North Ayrshire Council in my constituency automatically registers children for free school meals both to reduce stigma and to ensure that children do not miss out. It is important that we do not lose that advantage.
The Bill calls on the Government to make separate payments the norm. It is often said that universal credit should be like a salary, but salaries are paid to individuals, and it is quite Victorian to go back to the idea of the breadwinner. I certainly would not be too chuffed if my salary were posted to my husband. To be serious, however, financial control is usually the first level of abuse. A survey of 4,000 people showed that one in five had faced financial control or abuse. Although those people are not all women, 88% were women in relationships, which means that they are the vast majority. A women with no money in her purse at all very quickly becomes isolated from her friends or from any support network because she simply cannot afford to go for a coffee. She feels embarrassed, she starts to withdraw and she ends up isolated. More than half of all women in abusive or violent relationships cite lack of money as their reason for not leaving. No woman should have to choose between poverty and abuse.
The Bill calls for both a cumulative and an equality impact assessment of all the welfare changes over the past five years to be carried out and then published. The biggest loss of income is due to the benefit freeze, the two-child limit and the bedroom tax, but the issues involved in universal credit are compounding the problem. This Bill seeks to find pragmatic solutions. It must not be forgotten that poverty is the biggest driver of physical and mental ill health. It has the greatest impact on children because they find it hard to study when they are cold and hungry. Poverty can blight their lives, ruin their educational chances and reduce their chances of a good job in the future. Instead of ending up spending money on blighted lives in the criminal justice system, dealing with drug addiction or paying benefits to those children, we should invest in them now. There was broad agreement on the policy of universal credit, but we need to fix the reality so that universal credit becomes a flexible and supportive benefit that helps people back to work, but does not punish them for the situation they find themselves in.
I call on the Minister to listen to charities, local authorities and MPs right across this House. It is important that the Government recognise that universal credit is flawed and they need to fix it now.
Question put and agreed to.
That Dr Philippa Whitford, Neil Gray, Drew Hendry, Kirsty Blackman, Chris Stephens, Alison Thewlis, Frank Field, Norman Lamb, Sarah Champion, Liz Saville Roberts, Paula Sherriff and Lady Hermon present the Bill.
Dr Philippa Whitford accordingly presented the Bill.
Bill read the First time; to be read a Second time on Friday 16 March 2018, and to be printed (Bill 132).
Ways and Means
Income Tax (Charge)
Debate resumed (Order, 23 November).
Question again proposed,
That income tax is charged for the tax year 2018-19.
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
I know that the whole House will join me in sending our warmest congratulations to Prince Harry of Wales and Meghan Markle on the announcement of a union that will make the royal family even more global, and Britain more global than ever before.
I am delighted to open the Budget debate. The driving purpose of this Government is to strengthen Britain’s global role, to raise our level of national ambition and to prepare for the opportunities before us when this country regains the power to decide our trade policy and strike our own trade deals. As that moment approaches, the House should focus on the salient fact that 80% of the global economy and 90% of world economic growth lies outside of the European Union. The countries of Asia and the middle east have been increasing their relative weight in the global economy for decades, so that the great arteries of world trade are thousands of miles from our continent. Every day, fleets of supertankers carrying 17 million barrels of oil ply the strait of Hormuz, and a quarter of the world’s maritime trade passes through the strait of Malacca in south-east Asia.