Sajid Javid – 2014 Speech on Help to Buy

CBI Conference

Below is the text of the speech made by Sajid Javid, the Financial Secretary to the Treasury, to the Euromoney Annual Islamic Financial Summit on 11th February 2014.

Thanks Mushtak.

I’m very glad to be here this morning…

And to be able to speak about an issue that is – in fact – very personal to me.

53 years ago, my father – a young man called Abdul-Ghani…

Left the Punjab – Pakistan – to find work here in the UK…

First as a cotton mill worker…

Then as a bus driver…

Before – eventually – setting up his own business.

And what my father’s career taught me…

Was that the UK is a country where foreign workers or businessmen or businesses can come…

And if they work hard…

And if they invest their time and their energy…

And – if they have it – their money…

They can both contribute to – and benefit from – a strong economy.

But before I became an MP…

I did something different to my father…

Which was to spend twenty years…

First for Chase Manhattan…

Then for Deutsche Bank…

Travelling out of the UK…

And working in emerging markets.

And what my career taught me…

Was that in a global business environment…

If the UK wants to remain the centre of the financial world…

It needs to keep exploring – and engaging with – fast growing economies.

And that’s what I want to talk to you about today.

First, I want to talk about why the UK – and this city in particular….

Is the centre of the financial world.

Second, I want to talk about why we view Islamic finance as such a key market in this City’s future…

And finally, I want to talk about the steps the UK Government is taking to ensure that this country can become a hub for your sector.

Success of UK as a financial centre

So why – or how? – has the UK established itself as such a good location for Islamic finance?

This isn’t something you can decide to do overnight.

London has always been – for a number of reasons…

Some of them historic…

Some of them geographic…

A global city.

And as modern Islamic finance started to develop and grow…

Our city has grown with it.

By leveraging our existing assets;

Like our common law legal framework…

Our advantageous time zone…

Our deep pool of structured finance expertise…

We’ve turned this country into a place very well equipped to deal with what you do.

We’ve created one of the most advanced regulatory and tax environments in the world to provide a level playing field for Islamic finance.

All the major banks in the UK provide Islamic finance products and services in one form or another…

We have 6 fully Islamic banks.

And we’ve also got all the support networks in place that any major market player needs…

Like legal or accounting or consulting firms.

And the expertise they provide…

Coupled with the benefits of our common law framework…

Mean that the majority of cross-border Islamic financial contracts reference the law of England and Wales.

In fact, almost every international Islamic contract will touch London – or a London-based firm – in some way.

So we’ve already established ourselves as a location where the Islamic finance sector knows there are networks that understand its needs…

Understand its customs…

And understand the laws that govern it.

Growing Market

But simply because we have that network in place now…

Doesn’t mean we can be complacent…

And believe we’ll remain the best place for your sector.

Because – as you’ll all no doubt be hearing over the course of the conference – Islamic finance is undergoing huge and exciting changes…

The Islamic finance sector is growing faster than traditional banking.

Islamic investments are set to grow to £1.3 trillion over this year.

And 10 of the top 25 growth markets in the world have large Muslim populations, with rapidly expanding Islamic financial sectors.

Of course, if you want proof of the importance and the relevance of Islamic wealth…

You only have to look at the skyline of this city.

In the east, where the cranes of DP World are building one of Europe’s biggest ports.

In the south, where the Shard – Europe’s tallest building – was funded by Qatari investment.

In the West, where Battersea Power Station is being refurbished – thanks to £400m of Investment from Malaysia.

And – of course – in the North, where Arsenal – one of the top teams in the world’s most watched football league – play their home games in the Emirates Stadium.

And all that investment in all those projects unlocks jobs, and it creates growth in the city.

Those projects and those buildings also serve as a clear, physical reminder that Islamic finance is becoming an even more important part of global finance.

And here in the UK we want to make sure we can keep engaging with it.

And keep working with it.

So we’re taking constant action to keep up with it.

Action taken so far

Many of you will be aware of the action we’ve taken already.

Many of you – in fact – will have been at the World Islamic Economic Forum here in London last year….

And I’m sure those of you that were, will agree it was a real success.

It was the first time the Forum had been held outside the Islamic world.

And it saw attendance by nearly 3 000 delegates from over 120 countries.

There were 46 Ministers…

And 16 Heads of State or Government, including the UK Prime Minister.

It was at that Forum, that David Cameron made a number of announcements, including:

Our intention to issue a sovereign sukuk…

And our commitment to opening up new forms of student loans for Islamic students…

And new forms of start-up loans for Islamic entrepreneurs

The conference also saw the announcement by the London Stock Exchange of a new Islamic index…

Which uses some of the most advanced techniques on the planet to screen financial ratios, and enable investors to identify opportunities with lower volatility.

In short: it means that this city will be the best place to identify Islamic finance opportunities…

And the best place to give investors the tools they need – in accordance with Islamic principles – to take advantage of them.

Last year also saw the formation of a UK Islamic Task Force…

The launch of London’s first Shariah-compliant Underwriting Agency…

And the launch of a UK Government insurance action plan…

Which commits us to developing London’s expertise – and to grow London’s market – in commercial Islamic insurance.

Things we are going to do

Of course, all of those actions represent a strong start…

But launching new policies or new taskforces or new services is one thing.

The real proof our commitment will come in making sure that those policies and those taskforces and those services help London to reach its full potential as the world centre of Islamic finance…

And – in turn – for global Islamic markets to reach their full potential.

So I’d like to spend my last couple of minutes updating you on where we’ve got to with some of that work.

First, our announcement on the sovereign sukuk.

The market has long made the case for a sukuk issued by the UK Government.

And many of you will know that this is something the UK Government has looked at the possibility of doing before.

Now, due to a hurdle or two, it has never quite happened…

But through pragmatism – and through political will – I’m very pleased to say that we’re now in a much better place to overcome those issues…

And I expect issuance to take place in the forthcoming financial year.

Following an open competition, at the end of last month…

We appointed HSBC and Linklaters as external advisors to assist us in this work.

I have to say, the strength of the competition for those roles was remarkable…

And serves as testament to just how far the industry has developed and just how much expertise now exists both here in London and abroad.

We anticipate that issuance will take place by way of syndicated offering…

And that closer to the time of the transaction we’ll be seeking to include additional syndicate members to help us bring it to market.

I’m confident that this Sukuk issuance will deliver significant benefits both for the UK and for the Islamic finance industry:

First – it should prove that the concept works, and demonstrate that the UK has established both a legal and regulatory framework that puts Islamic finance on a level playing field with conventional finance.

Second – having a top credit issuer like the UK issue Sukuk should move Islamic finance into the mainstream, and encourage its acceptance as an asset class by those who may not have considered it previously.

And third – It will demonstrate – quite clearly – that the UK is a country that is open for business, and whose Government welcomes trade with all parts of the globe.

This is – I think – the most exciting development in this area for a long time, and I’m really looking forward to working hard and seeing it through.

Another exciting development has been the work we’ve taken forward– on Islamic student and start-up loans.

Last year’s announcement on this was – for me – incredibly important.

Fellow British Muslims shouldn’t feel unable to go to university because they can’t get a Student loan – simply because of their religion…

Nor should they feel unable to start a business because they can’t get a start-up loan – simply because of their religious practices

Of course, I also believe – and this Government agrees – that a Muslim in Britain shouldn’t feel unable to buy a home because they can’t get a mortgage…

So I’m glad to be able to announce that – from today – the rules for the Government’s Help to Buy scheme have been amended…

So that providers of Home Purchase Plans – which are a Sharia compliant alternative to a mortgage – can benefit from the scheme too.

That action – on student loans, on business loans, on home loans – shows that we are embedding Islamic friendly processes into our everyday financial systems.

The final area I’d like to update you on is the work of our Global Islamic Finance and Investment Group.

This group was – again – announced at the WIEF last year.

It’s chaired by my colleague and friend Baroness Warsi…

Its members include Ministers, Central Bank Governors and Islamic bank CEOs.

And its purpose is to increase our engagement in this area internationally

Work is already well underway by Baroness Warsi to identify some of the greatest global experts and practitioners in this field – both from industry and from Government…

And her vision is for a group that bring together key public and private sector expertise…

Who can consolidate existing work…

And develop a set of high level recommendations for the future.

These might be about building things…

Building trade links…

Investing in the building of new infrastructure…

Or they might be about knocking barriers down…

Barriers like lack of skills…

Or shortages of long-term investment products.

So let me tell you this.

We are in this for the long-haul.

And I hope the announcements we made last year…

And the progress we’re making on those announcements…

Show very clearly, just how important this is to the UK Government.

We’re under no illusion that there are many challenges – both domestic and international – still to be tackled.

We have to increase awareness…

We have to build up depth.

We have to build up liquidity and tenor in capital markets.

But we want to be at the centre of the work which helps Islamic finance reach its international potential…

And we’re the perfect place to do that.

First, Islamic finance is a faith based form of finance, originating in countries with majority Muslim populations…

But the UK is showing how it can develop in a country with a Muslim minority, and within a secular legal framework.

Second, London is the world’s financial centre, providing the core hub for the intermediation of capital across borders.

Every other major and minor financial centre is linked to the UK like no other…

So – working with our global partners, in Dubai, in Bahrain, in Malaysia, and beyond – we can integrate Islamic finance into global capital markets and create an Islamic finance market that never sleeps.

As I said at the outset, I know…

From my working experiences…

That the UK has to keep looking at emerging markets, and future global trends…

If we want to maintain our place in the world.

And I know from my father’s working experiences…

That this is a country which welcomes and rewards those people…

That want to contribute to – and benefit from – its economic growth.

We want you to play a part in our growth.

Just as we want to play a part in your growth.

And I’m sure that by working together, we can achieve both those aims.

Thanks for listening.

Sajid Javid – 2014 Speech on Home Ownership

CBI Conference

Below is the text of the speech made by Sajid Javid, the Financial Secretary to the Treasury, to the Council of Mortgage Lenders lunch on 4th April 2014.

I’m really pleased to have the chance to speak to you all today.

Now, you’ll know better than most that the dream of home-ownership is of real personal importance to millions of Britons.

I think it’s always been part of our nation’s psyche.

And I think our job, as a government that wants to support hard-working people, is to make home-ownership possible for as many people as possible.

So today I want to talk about:

– some of the issues we as government – and you as lenders – have faced over the last few years

– some of the action we’ve both chosen to take over the last year or so

– and some of the challenges I think we’ll face in the years to come

I’d like to say first though that it is encouraging to talk to you at a time when the market is showing signs of improved health.

The number of transactions this January was 30% higher than twelve months previously.

Mortgage rates – particularly at low LTVs – remain low.

And we’ve begun to see falls at higher LTVs too.

And I think the availability of mortgages at higher LTVs is of real importance.

I appreciate though, that some observers have been concerned by the pace of the change in the market, particularly on house price rises in certain areas.

And these are concerns that the government both recognises, and understands.

But I think it’s important that we put these recent changes in the context of the last few years.

Six years ago, this country went through the world’s largest banking bailout.

And that bailout – of course – had a knock on impact on the mortgage market and instigated a period where first time buyer sales were at half their long-term level, deposit requirements grew, and mortgage rates remained high despite bank rates being at record lows.

And this lack of mortgage finance was feeding through to construction too, with builders consistently citing it as a key factor in the low levels of house building.

Of course, nobody felt the impact of this more than aspiring home-owners, and I would have – particularly young – people coming to my constituency surgery worried that while the dream of their parents’ generation was to pay off a mortgage, the dream of their generation was to get a mortgage.

And it was in that context that government and builders and lenders had to work together to intervene in the market.

First through the NewBuy Ssheme in Spring 2012, which helped make high LTV mortgages available for new build properties.

And then in June 2012, when – with the Bank of England – we launched the joint Funding for Lending Scheme to make loans both cheaper and more available.

But while that scheme was effective at bringing about more price competition at lower LTVs there remained a persistent problem around higher LTV lending.

And Help to Buy – in particular the mortgage guarantee part of the scheme – was designed to tackle that.

I always think it’s worth reminding people that 95% mortgages have been a feature of the UK market for decades.

I know they were the way that I and many of my friends, some of my Ministerial colleagues too, took their first step on the housing ladder.

But after the great recession they more or less disappeared.

At the start of 2008 there were over 750 mortgage products available at 95% LTV.

But a year later – at the start of 2009 – there were 3.

And this was locking thousands of people out of home ownership.

People with steady jobs – who could afford the repayments on a mortgage – but who struggled to save up for the large deposits required.

The Help to Buy mortgage guarantee has bought these products back into the mainstream. And it has been a success.

Last week we published figures showing that over 17,000 people have already bought a home through the equity loan and mortgage guarantee schemes.

And that data – very pleasingly – showed that the vast majority of those people are first-time buyers, buying outside of London and the South East.

It was also good to see that the scheme has been supporting responsible lending, and that the average cost of a house bought under the Mortgage Guarantee – which is £148,000 – and the average cost of a house bought under the Equity Loan scheme – which is £203,000 – are both below the UK average house price.

Again and again, with Help to Buy and with the other schemes, we’ve relied on support from and the cooperation with the mortgage lending industry, the people sitting in this room today.

You’ve carried out a huge amount of work.

You’ve demonstrated a great degree of flexibility.

And we wouldn’t be where we are today without your help.

So I wanted to take this opportunity – on behalf of government – to say a big thank you for everything you’ve done.   But I also wanted to take this opportunity to make something else absolutely clear.

The government doesn’t see these mortgage interventions as part of a new ‘business as usual’.

We’ve taken exceptional steps to address an exceptional situation.

And we understand the arguments made by some, that as the mortgage market normalises many of these measures will no longer be appropriate.

That’s why – for example – we’ve shifted the focus of the Funding for Lending Scheme onto business lending.

And that’s why we will keep monitoring the trends in the market so we can make sure that our policies continue to have the right impact.

It’s especially important that we keep monitoring the impacts of our policies because as you’ll all know the world of mortgages doesn’t stand still.

We’ve got the Mortgage Market Review rules coming into full effect later this month, which I know have been a huge area of focus and work for industry, and I’m sure the last movement of the MMR Jab will go smoothly!

Beyond that, the next year will no doubt throw up more new challenges and decisions.

And there are two obvious ones on the horizon that I’d like to discuss quickly.

The first is the implementation of the Mortgages Directive.

Now, I’ve been clear about my views of the merits of this directive.

I’m not convinced of the benefits of these regulations to UK consumers or to UK businesses.

And that’s why our approach to implementing these will be to – wherever possible – minimise the disruption they cause, which will be very much in line with our wider priority of reducing regulations on business.

The second, is that we’ll have to consider the best way of managing the exit from the mortgage guarantee.

As you’ll know, we’ve always been absolutely clear that this is a three year scheme, but I am aware that some in the industry, including the CML, are concerned about the end of the scheme creating something of a ‘cliff edge’.

We do understand these concerns.

But there are mechanisms to adjust the scheme parameters, which we’re confident will help to smooth the transition, and we’ll make a judgement about how best to use those flexibilities according to the market conditions at that time.

So that is something of a whistle-stop tour through the issues we’ve faced, the changes we’ve made, and two of the challenges yet to come.

I know that everyone will be eager to eat but I’d like to leave you with this.

I’m incredibly grateful that myself – and my colleagues at the Treasury have been able to work so closely with you, through what have been some difficult years.

And I think that between us we’ve been able to take steps and introduce measures that will continue to make the dream of home ownership a reality for thousands more people.

You’ve played an incredibly important role in our long-term economic plan to produce sustained growth for the people of our country.

And I’m certain that if we continue to work closely together and if we continue to be honest and frank with one another, then we’ll be able to deal with any further challenges that come our way.

Thank you.

Sajid Javid – 2015 Speech on British Business Success

CBI Conference

Below is the text of the speech made by Sajid Javid, the Secretary of State for Business, Innovation and Skills, at the Private Business Awards on 30 September 2015.

It was great to hear that litany of British businesses successes.

But Charlie, when you said that “everyone” needs a Tangle Teezer hairbrush. Are you sure you meant everyone? I should add that the 1 haircare product that I do use is also made here in the UK. Mr Sheen.

I know that a couple of years ago the Chancellor stood here and talked a bit about his personal experience of private business. How he grew up watching his dad running the family firm. A firm that employs hundreds of people, turns over millions of pounds, and sells its designer wallpaper right around the world. My early exposure to private business was rather different. The clothes shop my dad ran, for the most part, never had more than 7 employees – him, my mum and, during the school holidays, me and my 4 brothers. That’s why I know more about 1970s ladies fashions than any other male MP. As for exports. Well, I think we once sold a skirt to someone in Wales.

But whether you’re running a small fashion retailer in Bristol, or an international wallpaper designer on the King’s Road.

Whether you’re making folding bicycles or folding ballet pumps.

Whether you’re a kitchen-table start-up or a centuries old family enterprise.

You all face the same challenges when you’re running your own business:

  • you’re highly exposed to the ups and downs of the economy
  • a new product line could grow the business if it works, or bring it crashing down if it fails
  • one late payment from a major client can wreak havoc with your cash flow
  • it’s rarely easy to find the expert advice you need to help your business expand
  • and even if you’ve got a great idea, finance from sceptical banks can be hard to come by
  • you can’t even rely on Dragon’s Den, as Shaun Pulfrey found!

But despite all the barriers, despite all the challenges, the people here tonight have come out on top.

This room is filled with successful businessmen and women. In brewing, retailing, manufacturing, publishing, even corn-popping, you know what it takes to reach the top.

You know how many obstacles you have to overcome.

And you know the scale of the challenge that British businesses faced just 5 years ago:

  • the worst recession in almost a century
  • the biggest budget deficit since the Second World War
  • the world’s largest bank bailout
  • a nation saddled with debt and an economy struggling to grow

When we came to power, in 2010, we knew that Britain couldn’t have a sustainable recovery without a thriving private sector.

And that’s why we’ve been working tirelessly to support business leaders like you.

Now I know this evening is all about what private businesses have achieved, and I don’t want to be accused of stealing your thunder.

But as Ruby just talked so convincingly about the importance of self-promotion, I’m sure you’ll forgive me for telling you a little bit about what we’ve been doing to help!

  • we’ve cut red tape and regulation, giving you the flexibility and freedom to run your companies the way you want to run them
  • we’ve cut corporation tax, so you can invest more of your profits in continued success
  • we’ve introduced a new employer National Insurance Contribution allowance, lifting 450,000 employers out of NICs altogether
  • we’ve created a £1.2 billion package to put a 2% cap on increases in your business rates

British Business Bank programmes are already supporting £2.3 billion of finance to 40,000 smaller businesses.

UKTI is helping you access new markets overseas. Only this month I was in China and India, where British private companies are doing just that.

The Start-Up Loans programme has provided entrepreneurs with more than 30,000 loans worth well over £155 million.

And the Business Growth Service has brought together a huge range of advice and expertise to help you expand.

Combining dedicated, dynamic entrepreneurs with a pro-business, pro-growth government has really delivered results.

  • employment is up – in the last 5 years, we have created more jobs than the rest of the EU put together
  • inflation is down
  • the British economy is growing faster than any of our major rivals
  • the number of small and medium-sized companies that are exporting just keeps on going up

But we’re not about to put up our feet and say “job done”.

I know that businesses like yours have massive potential for further growth, but surveys show that a shortage of skills and finance are hampering that.

So from next April we’re abolishing employer national insurance contributions on apprentices under the age of 25, making it easier than ever for you to take on and train the next generation of talent.

In January we’ll permanently increase the Annual Investment Allowance.

Not just doubling it, or event trebling it, but raising it by massive 700% so you can spend more on the equipment you need in order to expand.

We’re rolling out Growth Hubs across the country, helping you access support where and when you need it most.

And then there’s the Enterprise Bill, which started its passage through Parliament last month.

The bill will cement the UK’s position as the best place in Europe to start and grow a business.

It will cut red tape, reform business rates, make it easier for small businesses to resolve disputes, reward entrepreneurship, generate jobs, boost wages and offer people opportunity at every stage of their lives.

Because this is a government that stands behind you, not in your way.

A government that is unashamedly pro-business, and believes that successful businesses are an asset to be treasured, not a problem to be dealt with.

When I was asked to speak at tonight’s award ceremony, I didn’t hesitate to accept.

Not because of the excellent catering, or because of the quality of the company – although it is of course a pleasure to spend the evening with Charlie!

I wanted to join you here because tonight is all about celebrating private business.

And that’s something politicians simply don’t do enough.

As we’ve already heard, the vast majority of British businesses are in private hands.

They employ millions of people, pay billions in tax, generate over a trillion pounds of revenue.

Yet, too many Business Secretaries have overlooked the private business sector in favour of the more glamorous listed companies. The big names and bright lights of Paternoster Square and Wall Street.

But all businesses start life as private businesses.

Without you there would be no IPOs, no flotations, no stock market.

And without you we wouldn’t have some of Britain’s biggest, best, most dynamic and most exciting companies.

It’s been said that while good companies meet needs, great companies create markets.

And when I look at the list of nominees here tonight I see a list of great companies who have done just that.

So let me be very clear – this is one Business Secretary who appreciates private business.

Who understands the challenges you face, the support you need and, above all, the contribution that you make.

And that is why I’m here tonight.

  • because successful companies should be applauded.
  • because entrepreneurs should be saluted.
  • because private business deserves to be celebrated.

Good luck to all the nominees, congratulations to all the winners, and have a great evening.

Gordon Brown – 2008 Speech at a New York Interfaith Conference


Below is the text of the speech made by Gordon Brown on Thursday 13th November 2008 in New York.

Excellencies, Distinguished Delegates, Ladies and Gentlemen. I am delighted that so many leaders who have served the world with such distinction, and whom I admire for their statesmanship, have assembled from every faith and every continent for this very special conference on the culture of peace and the power of dialogue. I am grateful that this conference is being held under the auspices of the United Nations in this great hall where so many declarations and decisions that have changed history have been pronounced.

And let me pay tribute especially to King Abdullah of Saudi Arabia, a man of great faith whose leadership has inspired this dialogue. It is in recognition of his work and that of the Secretary General, who I also applaud, that President Bush, the King of Jordan, the Emir of Kuwait, Presidents Peres, Zardari, Kasai and Halonen and Prime Minister Erdogan and many, many more, have addressed this forum yesterday and today.

Never has such a global dialogue been so critical. Never has this global leadership working for its success been so strong and so inspirational. And never have the global opportunities that might flow from this – an end to conflict, division, misunderstanding and poverty – been so profound and so necessary.

For if we believe that our future peace and security lies together rather than apart, lies in understanding – not isolation, lies in the differences that we acknowledge and enrich us – not the differences that divide us, then we must speak to people’s values and speak to their beliefs.

More than two-thirds of our fellow citizens are followers of the major faiths so we can be in no doubt about the power of faith to shape our world. And while it is not for politicians to lead that bringing together of faith – that can ultimately only be done by the leaders of faith communities themselves – we cannot successfully lead nations without it.

History tells us that the greatest of social movements have been built on the strongest of ethical foundations. Two hundred years ago, was it not men and women of faith and religious conviction who successfully campaigned for the abolition of the slave trade? They said that we could not be one world until slavery was ended.

Fifty years ago, was it not men and women of conscience and religious faith who inspired the civil rights movement here in this country by saying that we could not be one world until every single citizen, whatever their colour, their race or background, enjoyed equal rights?

And is it not men and women of conscience and religious conviction who say today, as we said here at this General Assembly only a few weeks ago, that we cannot be one world when 30,000 children die unnecessarily every day from diseases we know how to cure and that we must together respond to this poverty emergency by redoubling our efforts to meet the Millennium Development Goals?

This is the power of faith: to force the greatest possible coalition for the common good. Not one which seeks to impose uniformity of doctrine or culture, but one that is enriched by diversity, united by shared values, and empowered by a common commitment to make our world a better place.

Too often throughout history people have seen the foreigner as at best a stranger, and sometimes at worst an enemy. And too often, cultures and faiths appear to change at national borders as dramatically as fashion and language.

But today we know we are not, and never can be, moral strangers to each other. Because we find that through each of our heritages, our traditions and faiths, runs a single powerful moral sense. A sense that we all share the pain of others. A sense that we believe in something bigger than ourselves.

When Christians say do to others what you would have them do to you. When Judaism says love your neighbour as yourself. When Muslims say no one of you is a believer until he desires for his brother that which he desires for himself. When Buddhists say hurt not others in ways that you yourself would find hurtful. When Sikhs say treat others as you would be treated yourself. when Hindus say the sum of duty is do not unto others which would cause pain if done to you.

Now call this the best angels of our nature, call it the light in man, call it the moral sense. Call it, as Adam Smith – the philosopher – did, the moral sentiment. Call it conscience or fostering compassion.

Call it the global ethic, the irrevocable unconditional norm for all areas of life for families, communities, races, nations and religions. Most of us accept that what you do not wish done to yourself you do not do to others. It is the same sacred ideal at the ethical heart of all true religions: our duty to others, our concern for the outsider. The sense that each of us is our brother and sisters’ keeper.

And so to those who say that religion, and especially that the misunderstanding and intolerance that has often existed between religions, is responsible for many of the problems we face today – I say we will address these problems if we act upon that moral sense that is shared at the heart of all the great faiths of the world.

Now we have a unique opportunity in this new global age, in what is an interdependent world, to act upon that interdependence and make a partnership by working together for the common good. And what is new in this global age is our enhanced ability to communicate with each other, to speak to each other across continents. It wasn’t so long ago that we used to say if only people could communicate across borders, if only people could hear what their opponents have to say, if only they could speak with each other and find that they have so much in common then the world would be different.

But today most of these barriers, these old barriers to communication, are being removed. We can now communicate with each other across frontiers almost instantaneously through the internet, through texting and through emailing. There are hundreds of thousands of social networks crossing the world. There are millions of people who may not inhabit the same street, but now inhabit the same internet site. And it is in the encounter of listening and being listened to that we discover that the beliefs we have in common are so much greater than what has in the past driven us apart. We discover what Britain’s Chief Rabbi, Jonathan Sacks, calls the dignity of difference. People, he said, all made in the divine image find that they are possessed of a dignity and sanctity that transcends our differences.

And we must act upon our interdependence. Recently in Abuja in Nigeria I visited a run down and dilapidated school where children either were sitting on the floor without a desk, or were sitting three to the desk that had been built for one. Their parents told me that a few miles away a far better school, a far better equipped school, offered free education. But the great facilities and teachers came at a high price because they were funded by an extremist group, poisoning the children’s minds and attracting them to a life of terrorism.

I believe it falls upon us to ensure the right to a decent education, free of extremism, for every child in the world. And think of it, if the achievement of this generation could be that every child was able to go to school, to gain an education, to recognise what they had in common with other children. I believe we can do this, coming together, by spending $10 billion dollar a year – $100 for each child.

But let us agree that the first thing we should do is that we do everything to fight extremism wherever it exists, so that people understand the central tenets of their faith and the rich associations these faiths enjoy with each other. We in Britain will continue to step up our campaign, working with other countries, to separate decent minded young people from the pressures of divisive and extremist advocates of terrorism.

Secondly, the values of different faiths are already expressed in joint projects and common service. We in Britain have Muslim Aid, collaborating with the United Methodist Committee in America, to respond to the needs of disaster victims in Asia. British Muslims working with American Christians to support Asian neighbours of all faith traditions gives us a glimpse of the potential of faith across our world.¼br /> As we celebrate the 60th anniversary of the Universal Declaration of Human Rights, we should also seek shared values through a shared commitment to human rights and fundamental freedom.

And I have one other proposal about how shared values can bring us together. Forty years ago the United States created the Peace Corps for young people from America to help the world. And round the world many countries, including Britain, have their own voluntary service overseas organisations. But in this new global age should we not celebrate the shared moral sense that is common to all cultures, all religions and all faiths, by bringing young people together in a global corps?

Perhaps a global environmental corps. And a global community service corps, and a global peace corps, a global medical aid corps. Bringing young people of all nationalities and faiths together with each other in a global effort that will show the strength that comes from the world’s young people acting together?

And let me say, thirdly, that we should repeat the importance that everyone who has spoken here attaches to peace in the Middle East. The creation of a Palestinian state, side by side with an Israeli state that has its security guaranteed. We in Britain, with other countries, will continue to work for that objective that I believe can be achieved by goodwill in the Middle East.

Now at this unique point in our history, when the world is facing the first financial crisis and the first resources crisis of the global age, that ability to come together and build shared solutions has never been more important. Let me send out the strongest message that the road to economic ruin in the past has been following the path of protectionism.

The way forward is not countries working in isolation from or against each other, but countries cooperating together. I believe that as world leaders gather in Washington this weekend we must and we will see enhanced cooperation by governments to deal with economic problems that are now hitting every continent in the world.

But I also believe that what matters is the clear statement that is coming from this conference in New York, that far more than the cooperation of governments, the cooperation of people, whatever their faith, in each continent of the world will determine whether we can build a truly global society.

I believe that through our continuing dialogue, we can come to recognise our common ground. The common ground on which we stand, whatever our faith positions. A common commitment to peace, to freedom, to prosperity, to tolerance and respect. And if we can mobilise a global movement around these shared goals, then the achievements can be momentous.

We can become the first generation to abolish illiteracy and give every child the chance of education together. We can become the first generation to solve climate change together. We can become the first generation – and we need to be that, to eradicate tuberculosis, polio, diphtheria, malaria and HIV-Aids from the face of the earth.

We can become the first generation to consign extreme poverty to the history books for all time. We can become the first generation to do so by demonstrating by our actions what this conference has been all about today. That the greatest of social changes are built from the strongest of ethical foundations.

Thank you very much.

Gordon Brown – 2008 Speech to CBI Conference


Below is the text of the speech made by Gordon Brown, the then Prime Minister, to the 2008 CBI Conference.

The times we’re in make this one of the most important conferences the Confederation of British Industry has convened.

So let me first of all thank you for your contribution to British business and the British economy.

Your dynamism, your resolution and your resilience – the hallmarks of your success – have never been needed more.

Together we can take the British economy through difficult times and equip ourselves for our global future.

Let’s just remind ourselves of the scale and speed of what’s been happening. $25 trillion dollars erased from global share values, world oil prices, having peaked at nearly $150 dollars a barrel, sinking by two-thirds, and reflecting big forces at work – the rise of Asia, a global capital market, the global sourcing of goods and services.

Quite simply: we are making the transition from the old world of sheltered national economies to the new world of a fully open global economy.

And the challenge is for each of us, in the spheres of influence we have, to surmount the risks and insecurities – and manage the teething troubles – of this new global age, while not losing sight of the vastly increased opportunities it brings.

Let’s name one of the great challenges: the global financial system. Even if there had been no systemic banking crisis, we have come to a time when the global flows of capital need to be complemented by a global — not just a nationally-based — framework of supervision.

Challenge number two is that of finite global resources: even if there had been no oil spike, our over-dependence on oil, the problem of climate change and indeed global food shortages would have to be addressed by new policies.

Challenge number three is global restructuring and global inequalities: even if there had been no cyclical rise in unemployment, all of us would have to deal with the consequences of a more specialist international division of labour and the resulting restructuring of jobs, and for Britain that means investing in the new talents and skills required for the technological and creative industries.

Some might want to take a narrow and insular view of today’s global crisis – some would say that the best we can do is to let the recession take its course, and that there is no alternative but to muddle through.

But there is another way of looking at it:

– whatever the troubles of this year and next, we are in the midst of a transition to a truly global economy which in twenty years is likely to double in size.

– with 1 billion or so new skilled jobs being created, we want to attract our share of that flow of new jobs.

– together we must ensure that British companies will benefit from the new opportunities as Asia becomes a market not just of millions of producers — but of millions of consumers too.

Whatever else we do – as everyone here will know – we have to prepare and equip ourselves for what the world is becoming. investing in our talent and skills, in our technological infrastructure and in our capacity for innovation. the high value-added products and services – that are Britain’s best guarantee of a successful global future.

And yes, the transition is difficult, but the prize for Britain is great – provided we can meet and master the challenges we face as we adjust to these new worldwide forces.

And I believe we are well-placed:

– we are a free trade country

– we have the most open economy in the world

– we have a global reach greater than any other country on earth

We understand that protectionism does not work – for economies or for workers: that better than simply protecting people in their last job, is helping people into their next job.

And so to all those who try to prove, by pointing to this crisis, that globalisation and global markets do not work our answer is very clear:

– the route to prosperity is not protectionism but an open, free-trading,

– flexible globalisation which must also be inclusive and sustainable.

So I am here to speak up for open economies

Our task is not to reject global markets but to repair and strengthen them for the future.  Not to condone excessive and irresponsible behaviour, but to reward hard work, enterprise and responsible risk taking.

But extraordinary times require extraordinary action. If we have learnt anything in these last tumultuous and unprecedented months, it is that this is not the time to become prisoners of the old dogmas of the past. All over the world, policy makers are leaving behind the orthodoxies of yesterday so — just as we set aside conventional thinking to invest directly but temporarily in the banking system — we now face the same challenge in monetary and fiscal policy – and for two reasons.

Worldwide, the orthodoxy of the last few decades, has been that monetary policy is the only effective instrument for economic management. But the financial system that is a key channel of monetary policy has been damaged. So monetary policy cannot be our only tool. Monetary policy must play its essential role, but it would be a mistake to rely entirely upon it to pull the economy quickly out of this downturn.

And there is a second reason for the urgent action we propose. ever since the second world war, one of our greatest problems —and our greatest constraints on policy —–has been the risk or reality of high inflation.  every framework for British economic policy has had to be focussed on the containment of inflation.

But now after many years of inflationary pressures – this last year with sharp rises in global commodity prices – we face today the opposite threat: the prospect of rapidly declining inflation.

So, as the chancellor will set out later today – and indeed as the leaders of the g20 countries agreed last weekend in America – a new approach to macroeconomic management is now needed if we are to get through this unprecedented global financial recession with minimum damage to our long term economic prospects:

An approach which combines the use of monetary policy with proactive fiscal policy to support economic activity

An approach which because of our low public debt supports demand in the economy with all of the instruments at our disposal while maintaining – not cutting – our programme of investment and reform for long-term benefit.

Richard, in your letter you argue – rightly in my view – for a substantial time limited fiscal injection into the economy. And as you say in your pre budget report submission, it is right to promote action now that can prevent permanent damage tomorrow.

Simply letting the recession run its course, to say there is no alternative, is not an option.

We have seen in previous recessions how a failure to take action at the start of the downturn has increased both the length and depth of the recession.

That was the mistake made in the recessions of the 8os and early 90s. the mistake made by the Japanese and the mistake made in the Asian crisis.

To fail to act now would be not only a failure of economic policy but a failure of leadership.

Doing ‘too little too late’ would mean more damage, more deterioration – the loss of vital businesses – a weaker economy, lower growth, eventually greater fiscal problems and in that event, higher interest rates and higher taxes.

The best way for taxes to be low in the long-term is for us to ensure that the downturn is as limited in length and scope as possible. And that means help when help is needed. Not when it is too late. A boost to the economy to sustain growth that will help to keep businesses open and protect people’s jobs and homes.

And a temporary fiscal stimulus is just that – temporary.

But to act now means we also have a duty to set out what we will do later. by showing we will take the necessary decisions in the medium term to guarantee stability, we can act today in a strong, decisive and fair way.

And we must ensure that we get the greatest value for every pound we spend. I would like to thank four senior business leaders – Gerry Grimstone, Patrick Carter, Martin Read and Martin Jay – who have in the last five months used all their business expertise and experience to leave no stone in Whitehall unturned – as we demand further ambitious improvements in government efficiency. the chancellor said in the budget that we must go beyond the 30 billions of efficiency savings already budgeted and that is why we will be announcing further improvements in efficiency.

For it is a broadly based economic recovery, combined with prudent tax, spending, and asset sale plans over the medium term, that will help us bring the government borrowing back down over the coming years.

Other countries too have agreed or are preparing to agree a fiscal stimulus, including America where debt is already higher than ours and where the deficit is already rising to high levels.

And just as coordinated international action is necessary to address climate change, energy security and global poverty, so too it is essential to co-ordinate interest rate cuts and fiscal policy, magnifying their impact, as called for by the G20 leaders.

So coordinated action on economic recovery will benefit Britain. And a coordinated approach in Europe, our largest trading partner, would be of most benefit. That is why I have been discussing with other European leaders how we can best work together.

But I also believe that – while the downturn may be difficult and especially difficult for countries which have large financial sectors, like ourselves – our economy today is better equipped to weather any global economic storm than it was in the 1970s, 80s or early 90s:

Because – with your productivity growth, your resilience, and your success, British business has achieved the fastest growth in average productivity in the past decade across the whole of the G7.

And we will continue to make the changes in regulation and laws necessary to have the best environment to do business.

And we are better equipped today also:

Because of Bank of England independence and now falling interest rates;

Because of the most flexible labour market in Europe – and because we are now making further changes to make it a condition for people on benefits to seek not just work but the skills for work;

And because – vital to our ability to invest publicly now – our national debt is considerably lower than a decade ago; and lower than all the G7 countries except Canada – so there is scope for the government to increase borrowing at the right time to support the economy.

And I believe we are also making the right long term decisions for our economy- not shirking the difficult decisions in planning, skills, flexibility, infrastructure and transport.

For the way forward is not just one isolated initiative or one individual measure, not even a set of measures for a few months. It is a concerted and comprehensive plan that will give real help to businesses and families while at the same time preparing our economy for the future.

We now have a unique opportunity to do – in a twenty-first century way — what was done in the twentieth century by the new deal. As they built roads and bridges to create the infrastructure for the years ahead; we can use this period of adjustment to build both the technological base and human capital to equip us for the opportunities ahead.

So let me assure you that we will continue our programme of investment in the technological revolution ahead, in the talent revolution; and in the environmental revolution.

Now, at the very moment of an economic downturn is precisely when we need to step up our welfare reform and invest in our human capital – as many of you who recently put your names to the statement in the newspapers would agree.

Investment in intangible and knowledge assets – in ideas, brands, and research and development – all areas dependent on technology and innovation; all areas dependent on high value-added talent and skills. These will be a vital force in building Britain’s future high value-added competitiveness in the global economy.

And to ensure Britain can make the most of the opportunities in the environmental revolution, we will support investment in the low carbon economy. A worldwide market that could by 2050 be worth as much as $3 trillion per year. And which could employ more than 25 million people. Because I want Britain to benefit from these new jobs – with at least 1 million jobs in the green economy by 2030.

So we are taking action to respond to the immediate financial crisis; and we are putting in place reforms and investment to benefit from the longer term opportunities – so we are optimistic about the future of Britain.

For this is a time for resolution; and for solidity in responding to a unique financial crisis.

A time for powerful action to equip us for globalisation’s challenges – and in due course to reap its rewards

And a time for confidence that as real incomes pick up again next year and national and international  policies work through the economy, so we in Britain have the strength  — and everything it takes — to face the global storm — and emerge stronger.

Gordon Brown – 2008 Speech on Health


Below is the text of the speech made by Gordon Brown on the 6th November 2008 in London.

One of the greatest assemblies ever of men and women who are concerned about health inequalities, and I find it a privilege to be here to be able to address the first session of this conference.

We are here today at this international conference representing more than 80 countries, Health Ministers, doctors, scientists, researchers from every continent of the world, because all of us believe that the worst of human tragedies demand the most concerted of actions. But the most unacceptable of injustices require the most strenuous of our efforts, and the greatest of avoidable human suffering should summon up nothing less than the united endeavours of the whole global community.

We are here today because we believe that everyone, children, men and women, no matter their birth or background, no matter where they live, should have the best chance to enjoy a healthy life. And we are here today because we know that thousands of people are dying because they are simply too poor to live. We are here today also because so much of suffering is avoidable, so much of illness is preventable and because so many of the massive disparities in life expectancy across continents, communities and countries are not immutable, but they are man-made.

And we are here today because in so many different areas of medicine we have in the last few decades amassed the technology, the science, the research, the medicine to prevent avoidable suffering and what in many places we lack is the political will of a shared global determination to address it.

And I believe that in the next few years, coming together we can make the difference. Building on President Bush’s work in the United States of America, I now know that President-elect Obama is determined to play his part in addressing health inequalities round the world. If you had listened to John you might have thought that in the words of Shelley talking about his grandmother that politicians had lost the art of communication but not, alas, the gift of speech, and I accept that the reputation of politicians is not as good as we would want it to be. Someone said to me, when you see the state of the country do you pray for your politicians, and he said no, when you see the state of the politicians you pray for the country.

We will see in the next few months a great Presidential address at the Inauguration Ceremony from President-elect Obama. I am reminded of the 1960 inauguration when President Kennedy was inaugurated and the defeated candidate, Richard Nixon, was asked: would you not have loved to have said the words that Kennedy said: ask not what your country can do for you, ask what you can do for your country? He said No. Well what words would you have liked to have given, would you have liked to have said the torch is passed to a new generation? He said No. Would you have liked to have said never negotiate from fear, never fear to negotiate – another of the great words of the Kennedy speech? He said No. He said what words would you have liked to have said from that speech? And he said I hereby accept the nomination of President of the United States of America.

I believe that throughout the ages the fate of the sick and the infirm and the homeless and the hungry has been the test of our world’s compassion, it has been the crucible in which our morality is tested. And we cannot stand aside and have the audacity to say we are one world now, but every three seconds we allow a child to die from extreme poverty. We know the facts. Today a woman born in Zambia is likely to live half as long as a woman born in Japan; half a million mothers will die each year, one mother in eight dies in childbirth in some of the poorest countries like Sierra Leone, and one of the reasons is that of six million people in that country there are only 200 nurses, 100 doctors and 80 midwives. The birth of a child should be the happiest moment in any mother’s life, but in some countries pregnant women are so afraid that they will die in childbirth that before the end of the pregnancy they say goodbye to their friends.

We say this is one world, but yet in the first decade of this century there is such a gulf between continents that one child in seven dies in Africa before the age of five, life expectancy is less than 50, while here in Europe the majority of people born today will expect to live beyond 80.

And it is also, and this will be the theme of our Health Minister, Alan Johnson, whose idea it was to have this conference, is that there is such a gulf between neighbouring communities in the same country, that life expectancy here in London falls by one year for every underground station you stop at from Westminster to Canning Town. And this is the geography of inequality, the geography of injustice and we are here today to tackle it, government policy makers, academics, business leaders, voluntary organisations, civil society united in a shared commitment to reshape our world and to close these gaps within a generation.

And if these inequalities are to all of us a source of shame, they are equally a source for optimism and hope, for if progress has been made then with determination and unwavering resolve for the future, much more can be achieved.

So let me thank for their important and timely report the Commission on the Social Determinance of Health, the distinguished Chair, Sir Michael Marmot, who has done so much and is globally renowned for everything he has achieved, all of you here this morning represented from every continent of the world for your commitment to putting these recommendations in practice.

Now some say, and this is an argument you will hear widely, that this period of global financial turbulence is a time where we will have to put our wider ambitions on hold, that we will have to postpone our dream of achieving the Millennium Development Goals and to retreat from the plans we have to build a fairer and better world.

But I believe there could be no worse time than this to turn back. We will now successfully address all the global problems that we face, whether it is financial problems, climate change, security or inequality, only if we work together for global solutions. And the health inequalities we are talking about are not only unjust, condemning millions of men, women and children to avoidable ill-health, they also limit the development and the prosperity of communities, whole nations and even continents. And so the challenge ahead is not to draw back from our ambitions, but to make them more urgent. And in today’s global society, when our understanding of ill-health and our ability to prevent and treat disease is greater than ever before, the defining challenge is of course to make the benefits of our collective expertise available to all.

Now already so many of you here have achieved so much: funding for global health as a result of your representations has more than doubled since 2000; thanks to so many of you here three million children are living who would otherwise have died; three million people are now getting treatment for Aids, even although there are millions still that we must and have to help; the International Immunisation Fund, the bond that we created with public and private sector money, together with the great work of GAVI, has already helped immunise almost 200 million children in more than 30 developing countries with life-saving measles vaccine, more than 100 million children against polio, and in total under this programme 500 million children will be vaccinated and many thousands of lives saved.

But with one child dying from malaria every second, with a mother dying in childbirth every minute, millions more around the world are still unable to enjoy the kind of healthy lives that so many of us take for granted.

At the United Nations in September Britain was proud to be part of a multinational delegation that pledged a total of $16 billion to restore progress towards the Millennium Development Goals, a $3 billion global malaria action plan was developed to stop all malaria deaths by 2015, and for the first time, listening to what people said, I believed that this could be done. A new task force on innovative financing, following our immunisation scheme, has been set up to help fund over a million health workers and with the view of saving 10 million lives by 2015.

But huge challenges, the challenges that you will discuss today, remain: improving daily living conditions; the environment in which people are born, grow, work and die, to ensure equity from the start and to sustain it across the life course; tackling the unequal distribution of power, money and resources to empower those who are disempowered and to give a voice to those who are all too often going unheard; expanding our international knowledge base on the social determinance of health, at the same time as developing the specialised workforce we need to address these factors on the ground.

For in our newly interdependent world, a world that is also characterised by the increasing movement of individuals and populations, and where disease respects no borders, health is now indisputably a global issue which is why we launched Health Is Global – the UK’s strategy for building better health for all.

Now here in Britain where our National Health Service has for 60 years tried to deliver healthcare on the basic principle that everyone should have healthcare regardless of ability to pay, we will try to build on what has been achieved to do more in addressing inequalities in care. There was an OECD report launched earlier their month which shows that our income gap is closing, the poverty rate falling from around the average to well below it today, so now we need to do everything possible to ensure we close the health gap too.

And to continue to address this I am pleased to announce that Sir Michael Marmot has agreed to undertake a new review of health inequalities in England, something I know Alan Johnson will say more about later this morning. And we will learn from other countries along the way, with our successful Sure Start programme addressing the health needs of infants, based on a programme from the United States, and our Health Trainers Scheme which reaches out to those people who are at the greatest risk of falling victim to ill-health, based on work done in Pakistan.

And today through this conference we have a further opportunity to learn from each other, to share best practice, to revitalise our efforts, to address health inequalities within nations, but perhaps even more significantly we have this opportunity to work together in this new global society alongside the World Health Organisation and other great organisations to tackle the inequalities between peoples.

And at this time the nations are now collaborating as never before to rebuild our international financial system, I know we will show the same kind of courage and visionary internationalism to advance the cause of healthcare for all, to end those inequalities, those injustices within a generation. This is the task we have set ourselves and we must not bend in our resolve to see it through.

I was with Nelson Mandela only a few months ago when he came to London to celebrate his 90th birthday. And Nelson Mandela spoke at a dinner where he challenged us to do more, and then there was a concert organised for Nelson Mandela and you may have seen the reports of it. And I have told this story before about Nelson Mandela speaking and then coming up to sit in the audience, and I had the pleasure of sitting next to him, and suddenly on to the stage came Amy Winehouse, and I had to explain to Nelson Mandela who Amy Winehouse, the singer, was – and it took some time to do so. And Amy Winehouse was telling her friends that Nelson Mandela and her husband had a great deal in common – that both had spent a great deal of time in prison. And when the end music was being played and the song was Free Nelson Mandela, she was actually singing Free Blakey, my Fella.

But the story has a point because Nelson Mandela at this great event was telling people that he had climbed one mountain in his life, he had climbed the mountain to fight the battle and to successfully end apartheid in his own country, but at 90 he was telling us there was still another even bigger mountain to climb, and the bigger mountain was to address the inequalities, injustices, poverty deprivation, ill-health and illiteracy that existed in so many different parts of the world, that we in the year 2008 had the means by which we could do so, what we needed to find was the cooperative spirit, the common international organisation, the coordinated effort of all good people to do so.

This is the theme of this conference, this is the mission of our generation, this is an opportunity for us to genuinely change the world.

Thank you very much.

Gordon Brown – 2008 Speech to the Health Service Journal


I am honoured and delighted to be here this evening — to celebrate the 60th anniversary of the NHS with so many people who have done so much to make it what it is: Britain’s best-loved and most respected public service.

I was brought up to believe that the NHS reflected what Professor Richard Titmuss called the “gift relationship” — giving practical effect to people’s altruistic as well as self interested impulses. And for me, tonight is a welcome opportunity to do something we should do more often: to thank you and your many thousands of colleagues around the country for what you do for our nation:

The nurses and doctors who so often make the difference between life and death;

The clinical teams who work selflessly together for their patients – in surgery, intensive care and rehabilitation;

The staff the patients rarely see – working in laboratories, and in kitchens and offices – yet just as essential to the service and to patient care;

And of course the men and women on the boards and management teams that shape the NHS, lead it, hold it all together, all of whom are in public service because as they tell me they can make a difference.

And my own experiences have confirmed my instinct and belief that the uniqueness, indeed the greatness, of the NHS as a British institution is not just that it has cared for tens of millions of people and saved many hundreds of thousands of lives – and not only that it has been at the forefront of innovation, pioneering advances in medical treatment, in surgery and in imaging – but that with its unique guarantee of healthcare free for all at the point of need, it has liberated all of us from the fear of illness left untreated because the costs are beyond our means. A clear and enduring expression of the principle that healthcare is not a privilege to be purchased but a moral right secured for all.

There is scarcely a family in this country that does not owe either health or a life to the care of the NHS.

And I know I and my family owe it a great deal. When I was sixteen I was playing for my school rugby team against our former pupils; and sustained an injury that could have lead to blindness. Just as I was starting university, I spent many months in hospital as the NHS worked to save my sight. And it was the skills of a remarkable surgeon, the care of wonderful nurses, the attention and yes, the love and care of NHS staff that saved me from blindness. So when I say I am grateful to the NHS — for its existence, its principles, its staff, and the sometimes truly miraculous care it can deliver – I am speaking from the bottom of my heart.

And when I thank you and all your colleagues for what you do, I know I am speaking for millions of patients over the decades who are equally grateful for the care they have received.

Of course in its 60 years so far the NHS has had its ups and downs, but I like to think that – thanks largely to your efforts – the last decade has been one of the most lively, innovative and successful in its history.

And though as Chancellor for much of that time I had every confidence in you and in what you could deliver, it did occur to me that some extra funding might not go amiss.

So – as many of you will be aware – we managed to assist you in your endeavours. And together we have succeeded in reversing the effects of decades of underinvestment.

There are now 80,000 more nurses, 30,000 more hospital doctors, and 5,000 more GPs than in 1997.

Until 10 years ago the majority of NHS hospitals were built in pre NHS days. Now the NHS has 149 new hospitals and 90 new walk in centres either built or on the way.

The NHS now carries out a million more operations each year.

Its waiting lists are at their lowest level for a generation. Better NHS care for people with cancer and heart disease has saved 235,000 lives.

And just in the last year, we have increased GP opening times at weekends and in the evenings, put in place new measures to clean hospitals and tackle MRSA, moved the NHS from deficit to surplus and taken the first full steps towards a preventative health service with new rights to

And while a decade ago people wondered if the NHS at 50 had any future at all, it has not only survived; it has benefited enormously from a vivifying regime of more money, better management, and much patient-focused reform. And at 60 it is more firmly than ever part of the fabric of British national life.

But even as we celebrate, the challenges of the next decade are already upon us, and are utterly different from those the NHS faced 60 years ago.

In the early decades of the NHS people were just glad to have free health care when they needed it. Today, people want healthcare services which are tailored to their individual needs and their busy lifestyles.

Sixty years ago the main concerns were infectious diseases, acute medical and surgical illness, and the long struggle against cancer. Today, with the ageing population and a rise in so-called ‘lifestyle diseases’, the NHS finds itself having to support many more patients with long-term conditions – to provide the best of acute care when they need it and at the same time support their independence.

In the early decades, high-cost, high-technology interventions were rare or very rare. Today, costly but effective technology has opened up vast new areas of diagnosis and treatment: much of it – for example, heart transplantation – proven to be highly cost-effective. And new cutting edge science – from genetics to stem cell therapy – brings with it huge new potential for earlier diagnosis and dramatic new interventions.

But far from these challenges meaning we should abandon a universal health service free at the point of need, the NHS is today even more relevant. Because when the cost of some of the more effective health interventions is now far beyond ordinary family resources – and when there is a risk that genetic conditions will lead to people being excluded from private insurance – families more than ever need a system of funding like the NHS that insures everyone as comprehensively as possible against the risks of huge medical bills and ensures that the cost of that care will be absorbed not by us as individuals but by all of us together – pooling and sharing the risk in a comprehensive healthcare system publicly funded by taxation. The modern rational choice for healthcare: what I call the best insurance policy in the world.

But it is also right to acknowledge that for too long the NHS has been able to do too little about prevention; and has sometimes offered services that have been criticised as suiting the providers of care better than they suit the patients.

Now, the record levels of investment over its sixth decade have opened up the potential for us both to provide an excellent hospital and GP service and to fund new preventative programmes and care far better tailored to individual need.

In future, the NHS will identify your clinical needs earlier; the better targeted to keeping you healthy and fit, and will give you far more control of your own health and your own life.

And just as the formation of the NHS in 1948 was seen as a bold and daring leap forward, so the move to the preventative NHS will be another bold and daring leap forward.

It was to map out the next steps towards that vision of a personal, preventative health service that, almost a year ago this week, the Health Secretary Alan Johnson and I asked a clinician not a politician – Professor Ara Darzi – to carry out a fundamental review of the NHS. And let me thank him for his work which has involved engaging 2000 clinicians.

His vision is of an NHS of quality and excellence:

  • a world-class NHS with world-class services and worldclass care;
  • an NHS that provides personalized services that help people lead healthy and active lives;
  • an NHS where patients can take greater control over their own health and where professionals are empowered to become advocates for this new ‘patient

So building on our plans for check ups for over 40s and new rights to screening – for example for colon cancer and for breast cancer – and to preventive vaccines, our priority now is to develop much more comprehensive wellbeing services and to give patients much more control over the treatment and care they receive.

Everyone with a long-term condition will have their own personalised care plan; millions will be able to make the choice to become part of active patient programmes; all patients will now be guaranteed access to the most clinically and cost effective drugs and treatments – removing the last vestiges of the postcode lottery in the prescription of medicines in the NHS; and just as people can now choose which hospital they go to for their operation, so they will now have a right to choose which GP they register with for their day to day care.

And because we know that first class quality of care cannot be mandated from the centre but requires us instead to give NHS staff the opportunity to lead change themselves, Ara Darzi has also made recommendations for how we can empower and set free NHS staff.

Clinical advisory groups will be set up at every level of the NHS, and there will be new incentives to encourage and reward innovation at the front-line, greater freedoms for high performing GP practices and hospitals to develop new services for their patients, and a commitment from government that wherever staff and clinicians can show that changes will improve services for patients we will back you to the hilt. And all this will be supported by an NHS constitution setting out – for the first time – the rights and responsibilities of both patients and staff.

So if in the last generation progress in health care was seen simply in terms of the doctor administering antibiotics, in the coming generation it will be patients, doctors and NHS staff working together to improve health and manage conditions.

  • the doctor not just physician but adviser;
  • the nurse not just carer but trainer;
  • patients more than consumers — partners.

And I believe that the NHS is almost uniquely well placed to deliver this transformation: one of the most trusted organisations in British society, its doctors, nurses and staff recognised by everyone as a force for good in our country.

It is these strengths that we will build on for the future.

Our goal: to create for the next decade an NHS that is:

  • here for all of us but personal to each of us;
  • focused on prevention as much as cure;
  • fully prepared for the challenges of caring for an ageing population;
  • and strong and confident enough to put real control into the hands of individuals and their clinicians.

So with reform, modernisation and investment, our aim over the next six decades is to make the NHS not just the best insurance policy in the world but the best health service in the world.

This is a worthy mission for an institution as great and as significant in our lives as the National Health Service — and it is a transformation I ask you all to be a part of.

Gordon Brown – 2008 Speech to CBI Scotland


This speech was made in Glasgow by Gordon Brown to the CBI Scotland Conference.

Let me say first what a pleasure and a privilege it is to be with you this evening.

A pleasure to be back in Scotland, and to join you for dinner here in Glasgow

A privilege to be here as your guest; and I’m grateful to Iain McMillan and David Thorburn for this opportunity to thank you for your tremendous contribution to the Scottish economy and that of Great Britain

As CBI Scotland you represent more than 26 thousand businesses and a combined workforce of some two-thirds of a million people. Businesses proud to be based in Scotland – and prouder still to be doing business in every part of Britain, and throughout Europe, and all across the world.

And as the voice of those businesses the CBI continues to be an invaluable partner to Government. An honest partner – not afraid to tell us what we need to hear; and a trusted partner too – genuinely working with us to ensure the continued competitiveness of British business.

The breadth of the businesses you represent here tonight highlight the nature of the global economy in which we now operate. Your firms are active in:

  • oil and gas exploration in South Asia
  • data and intelligence management to fight crime and promote security in the USA and elsewhere
  • world-leading pensions and financial services provision
  • and large-scale naval construction here in Scotland

Firms all responding to the same challenges of globalisation, the changing demands of consumers, emerging technologies, and the greening of industry – establishing themselves as leading businesses in this, our now global economy.

And it is what you do, the challenges you face, and the current concerns we all share about world economic conditions that will be the focus of my remarks this evening.

As we all know, we face challenging times in the global economy. The first great financial crisis of the global age with a global credit crunch and global rises in commodity prices.

This unique set of events is affecting every major advanced economy. With growth in the euro area – our largest export market – falling by 0.2 per cent; by 0.5 per cent in Germany, 0.3 per cent in France and 0.3 per cent in Italy. Japan contracted by 0.6 per cent and the US and Canada both saw falling GDP in the course of last year.

But the trebling of oil prices and the credit crunch reflect deeper forces at work – the pressure on resources as four billion people enter the global economy; the rise of Asia as a manufacturing and services power, the restructuring of jobs, the scale, scope and speed of technological change and then the pressures on the living standards and expectations of communities and families as a result.

Britain cannot insulate itself from these unprecedented shocks because we are part of the global world – but just as surely we can benefit from the huge opportunities globalisation brings.

Undoubtedly we face a challenging period in the British economy – particularly given our position at the heart of the world’s financial markets – and both the Chancellor and I understand the difficulties you face.

But while never complacent about our economic prospects, I am also cautiously optimistic about the long-term resilience and underlying strengths of the British economy.

Because at root our economy today is better placed to weather any global economic storm than it was in the 1970s, 80s or early 90s.

First, Bank of England independence has given us low interest rates founded on sound macroeconomic management and so despite increases in the prices of food and fuel – and I understand the impact this is having on families and businesses – the sound framework for monetary policy which we have established means inflation remains far below the double-digit levels we saw in the earlier decades. And this will help ensure that interest rates remain similarly low by historical standards.

Second, the most flexible labour market in Europe means that even though unemployment has risen in recent months, employment remains close to record highs – and wage pressures are subdued, led by our own responsible decisions on public sector pay. And with the investment in the New Deal and our latest welfare reforms there is more support than ever before to help people back into work and to fill the 600,000 vacancies still in our economy. And a balanced approach to migration allows businesses to benefit from the specific skills that economic migrants can bring to our country and improves the responsiveness of our labour market to fluctuating demand.

Third – the underlying financial strength of British business reflects its improved efficiency – driven by your hard work in achieving the fastest growth in average productivity in the past decade across the whole of the G7. Britain remains a magnet for overseas investment and our export performance is improving, with our manufacturing productivity growth strong.

Fourth, low debt. The significant debt repayments we made since 1997 mean we have cut public debt as a share of national income from 43 per cent in 1997 to today’s 37.3 per cent. This means that, unlike in earlier economic slowdowns, we can sustain our ongoing commitment to investment in fixed capital infrastructure – up 58 per cent in real terms in the last decade. In 1997 we invested £144.5 billion. Today it is £229 billion. Even after inflation a 58 per cent rise.

And – while no government can hope to protect people from the full impact of the global credit crunch or the worldwide spike in commodity prices – I am determined that we should do what we reasonably can to help families and businesses through this difficult period of adjustment. So we will back up our investment commitments with careful interventions designed to provide targeted support for hard-pressed families – such as this week’s home-owners’ support package and the £120 a year tax cut for basic rate taxpayers that will start to feed into paypackets later this month.

Fifth – we are making all the long term decisions, difficult as they are, to boost our competitiveness; on energy, planning, transport, housing, digital technology, science and skills. And the 2002 Enterprise Act has given us one of the most robust, independent competition regimes anywhere in the world. The support for British enterprise – strengthened over the last decade with the launch of Enterprise Capital Funds, the Small Firms Loan Guarantee and administrative burden reduction targets. Britain today has four and a half million businesses – more than ever before. And the OECD says Britain has the lowest barriers to entrepreneurship of any OECD country.

Underpinned by the strength of these five fundamentals I believe we can help British families and businesses weather this global downturn and seize every opportunity for future economic success in the upturn. Because it is the actions that governments take and the policies they pursue in periods of economic slowdown that can determine their comparative success and competitiveness in the upswings.

Once we are through this global crisis, we will continue to enjoy the opportunities that the global economy offers to us. But that means making sure we are in a position to benefit fully, for example by reaping the rewards of the huge investment in Britain’s science base that the Government has undertaken, in our schools and universities and their partnership with the business sector.

These actions and other investment by the Government are precisely what have stood us in good stead for the long term. And they are what can give us confidence amid the inevitable anxieties people have in the current period.

So the challenge now is to share both the risks and riches of the new economy in a fair way.

Because the prize is the opportunity to benefit from a rapidly expanding world economy.

Whatever we choose to do in Britain, we know that in the coming decades the world economy is going to double in size and wealth. Companies will be able to compete for twice as much business as today. And there could be as many as a billion new skilled jobs.

So the choice for us is not whether we believe there will be opportunities in the new economy – but how we, the British, choose to seize them.

As a government we are enthusiasts for globalisation – because we are optimists about what British firms, British workers and British entrepreneurs will be able to achieve. But at the same time we recognise that rising oil, food and commodity prices represent the greatest threat to higher standards of living for British families today.

So some argue for an outdated protectionism – as though we could just pull up the drawbridge and turn back the clock. But we argue that it is precisely by maintaining our open, flexible and dynamic economy that we can best secure people’s jobs, homes, and standards of living in a global age.

But we are equally clear that this is not a time for government to adopt a laissez-faire, sink-or-swim, you’re on your own approach.

So we will respond with vision, courage and steadfastness to address the new insecurities that hard-pressed, hard-working British families face. Because while the changes happening all around us are complex, the feelings they evoke are not. In tough times, people are understandably anxious. And they want to know that they will have a fair chance to cope.

They know that no national government alone can intervene to put everything right that is creating hardship, but they do look to us to us to take action to help them.

And we will not let them down. We will do what it takes to bring security to families on modest and middle incomes. And we will ensure that no-one who is prepared to work hard and adapt to change will lose out as a result of global forces. We will act responsibly to prepare people for the inescapable challenges ahead – in the short, medium and long term.

That is why we introduced the housing measures this week – and why we are currently working up proposals with the utility companies to address the problems caused by the impact of world oil prices on gas and electricity bills.

Not short-term gimmicks or giveaways – but firm steps towards making every home in Britain more energy efficient, thus reducing bills not just temporarily, but permanently.

Because you cannot address a long term problem – the supply and demand for oil- with a short term gimmick like a fuel stabiliser.

As you know in your businesses real leadership is about addressing, explaining and tackling the realities we face – not the realities we would prefer to face.

The oil and food price shocks have revealed that a growing scramble for resources is underway. We need a new kind of response – with better ways to co-ordinate globally the supply and demand for these vital resources.

At the heart of our approach must be a revolution in the way we think about and use resources; reducing our dependence on oil and by creating a low carbon economy achieving both greater security of energy supply and greater efficiency of energy use.

Oil has powered phenomenal economic growth over the last century – and North Sea oil in particular has offered Scotland thousands of jobs and contributed billions to our economy. And it will continue to play a vital role for decades to come.

But at its peak in 1999 the North Sea produced 2.9 million barrels a day. This year 1.5 million barrels a day – the largest reduction of any oil producing nation – making Britain a net importer of oil.

And five years ago oil was less than 40 dollars a barrel – in July it was 147 dollars a barrel and today 107.

It is our exposure to such volatility in the price of a commodity so vital to our economy that is the essence of what has been called the dictatorship of oil.

But it is important that we recognise and value the historical contribution of countries that have provided the oil and gas that has fuelled the rise in living standards we have all enjoyed. And equally to applaud those oil producers who are now leading the way in working with us to meet the global energy challenges we all now face.

For it is only by:

  • investing in more nuclear and renewable sources
  • increasing the efficiency with which we use energy in all its forms
  • making more efficient use of our existing oil reserves; and
  • acting to stabilise world energy markets

that can we achieve a more diverse, secure and sustainable energy mix that will ease the pain for Britain’s families, its businesses and ultimately also our environment. So today I set a new ambition to free Britain from the dictatorship of oil.

The policies we are putting in place will mean that by 2020 our economy will consume 20 per cent less oil for each unit of output than it consumes today – and only a quarter of the oil we used in 1970.

First – investing in more nuclear and renewable sources – with increased support for nuclear supply chain companies and the best and most cost-effective possible arrangements for safety, security, and eventual decommissioning.

Already today Westinghouse Electric Company has signed agreements with BAE systems, Rolls Royce and Doosan Babcock to collaborate on work associated with bringing the AP 1000 nuclear power plant to the UK – and may eventually lead to between 70 and 80 per cent of the work and services required to construct the AP 1000 being provided by the UK supply chain, securing valuable jobs in Britain.

And our 100 billion pounds investment to increase the proportion of our energy coming from renewable sources to 15 per cent by 2020 – a tenfold increase, is one of the largest increases anywhere in Europe.

So British companies must grasp the new opportunities to invest in green technologies and continue to back our planning reforms, because willing the ends also requires willing the means. The question must be not whether to invest in more renewables, but where.

Today I can announce the approval of a new offshore windfarm, near Walney Island – off the coast of Barrow-in-Furness. At up to 139 turbines, it will be one of the UK’s largest, providing the equivalent of all the homes in Glasgow and Dundee with clean, green electricity – and helping to give the UK the highest operating offshore wind capacity in the world.

And Scotland too is playing a leading role in this green technological revolution – already providing almost half of the UK’s renewable generation capacity.

Just south of here, at Whitelee, is the largest onshore wind farm operating in the UK. When complete next year it will be the largest operating in Europe.

By 2050 the overall added value of the low carbon energy sector could be as high as three trillion dollars per year worldwide. And it could employ more than 25 million people. I want Britain to benefit from these new jobs – with at least one million jobs in the green economy by 2030.

In Fife alone – there are some 50 companies investing or planning to invest in renewable energy. With projects such as:

  • manufacturing sub-structures for deep water off-shore wind farms;
  • developing large capacity batteries to store off peak generated power;
  • introducing biomass plants to cut CO2 emissions and increase efficiency in brewing and cereal processing.

Second – we must make far better use of existing oil.

We need major improvements in the fuel efficiency of vehicles – so we are issuing a challenge to the car industry that we will match their investment in new technology with a commitment to a new infrastructure for the use of electric vehicles.

And I can announce today a major new pilot programme for electric cars – including plug-in hybrids which can be fuelled by electricity from the grid or petrol. Working with the Energy Technologies Institute, Cenex, the UK Centre of Excellence for low carbon and fuel cell technologies, and the industry to explore the role of electric cars in a sustainable transport system.

But making better use of existing oil also means, third, taking all practical measures to draw on the reserves still in the North Sea.

So I have asked Malcolm Wicks to convene a joint industry-government working group to ensure we can make full use of enhanced oil recovery. And we will also re-examine the wider fiscal and regulatory frameworks to ensure the right incentives to maximise economic recovery of our oil and gas reserves.

Fourth – there is a clear and urgent need to bring stability to global markets. Here too, I am committed to ensuring Great Britain leads from the front.

Earlier this summer I went to Jeddah to press for a global new deal between oil producing and consuming nations.

We agreed action to reduce oil prices and secure global energy needs, through more oil supply – and more investment to achieve it.

This included:

  • ensuring sufficient access to capital and technology to bring new oil supplies on-stream, often in increasingly difficult physical conditions around the world;
  • a new emphasis on the reduction in future demand for oil, by promoting energy efficiency, and reducing market distortions caused by fuel subsidies, taxes and tariffs;
  • and providing help for oil producing countries to adjust as the world inevitably moves to low carbon sources of energy, including the progressive opening up of our markets to encourage their broader and deeper integration into the global economy.

At the end of the year we will be hosting a global energy summit to agree key areas for further action and so maintain the momentum generated in Jeddah.

A low carbon society will not emerge from business as usual. It will require new thinking and new technologies, new forms of economic activity and social organisation, new forms of consumer behaviour and lifestyles and your creativity, innovation and entrepreneurship to unlock the talents and skills of UK companies.

So if the British economy, British firms and the people of Britain are to reap the benefits of a new low carbon future, then every one of us – in every part of Britain – will need to act together.

We all know that sharing these islands places common obligations upon us all – obligations that current world economic conditions and the imperatives of transforming our energy economy can only increase.

But I believe there is a real risk of waking up one day to find that the many benefits of the union had been too long taken for granted and thoughtlessly thrown away.

In energy – as we have seen – the arguments that point to our interdependence grow in strength; to you in business they are already clear. There are very few major Scotland-only companies. Most are active throughout the UK, and more and more are global.

I ask you – are our firms in shipbuilding held back by being part of the UK? No – the aircraft carrier orders at Rosyth and the destroyers being built only a mile away supply the British Ministry of Defence.

And consider financial services – our biggest industry by value, and now Scotland’s biggest employer.

Scotland generates more money through trade with England, in financial services, than from its trade in all sectors in all areas across the whole of the European Union.

That is the simple arithmetic of the union. And it adds up.

So do the sums for jobs.

In the mid-1980s, Scotland’s employment rate was six percentage points below that of the UK.

Now Scotland has the highest employment rate of any nation in the UK and one of the very best in the whole of Europe.

If since 1997, the employment rate had instead increased only in line with the average for the UK as a whole, there would be around 200,000 fewer people in work.

That is Scotland’s employment dividend – the result of this Government’s record investment in the New Deal and Jobcentre Plus and its partnership with a devolved Scotland and local initiatives helping to deliver welfare on the ground. Scotland has benefited from this partnership – a source of strength not weakness.

No-one should be in any doubt about my commitment to the United Kingdom. It is founded not in ideology but on the evidence of history and the starkest of current reality.

Set against the global challenges facing us today, the bleak separatist obsession of the nationalists to split Scotland from the rest of the UK looks at best like self indulgent posturing. At worst like a wilful denial of the realities of the world we live in.

It is the duty of every government to strive to create the conditions in which business can flourish.

But there are some tests which should be applied before any party or any government can claim to be the party of business.

I would suggest that any party which said its core policy is to make business’s biggest market a foreign country fails that test. To make England a foreign country with all the increased cross border costs, all the regulatory and legislative fragmentation and duplication that would involve.

Nor, I believe, can a party be called the party of business when it fails to address our dependence on oil ruling out nuclear power.

Nor is it business friendly to propose a tax on jobs, to refuse to invest in infrastructure or to simplify the planning system.

Engagement and dialogue are vital but they are no substitute for having the right policies and the right relationships in place to build Scotland’s economy.

The reality is that we are stronger together than we ever could be apart. And what matters is where our talents can take us, not where Scotland ends and the rest of the world begins.

And you and your members recognise that. Our economic union benefits all the UK’s citizens – it’s in the interests of your members, their employees and your customers.

That is as true in 2008 as it was in 1708, and I will do nothing to put it at risk.

But do not confuse that resolve with unthinking opposition to change and development in how our union governs itself.

The constitution of the union has always evolved to meet the changing needs and rising hopes of our people as it did most notably when we created the Scottish Parliament – within the United Kingdom – 10 years ago.

And it is because the union’s flexibility is a source of its strength that, together with the Scottish Parliament, I set up the Calman Commission to review devolution. And I particularly welcome the contribution of the CBI to its work – and that your director Iain McMillan is one of its members.

I am not going to pre-judge the Commission’s work – but I do want to say two things about it. First of all, devolution has worked, but I do see one problem: while there have been good reasons why this is so the Scottish Parliament is wholly accountable for the budget it spends but not for the size of its budget. And that budget is not linked to the success of the Scottish economy. That is why we asked the Calman Commission to look carefully at the financial accountability of the Scottish Parliament. And this is a critical part of Calman’s remit.

And the second thing is more important still. Be under no illusion about my purpose. Devolution is intended to preserve the unity of the United Kingdom – and developing devolution is intended to strengthen Scotland’s place within it.

There is a modern case for the union and it must be heard. It is not about partnership at the expense of pride; nor about pride that can satisfied only by sacrificing partnership.

As our triple gold medallist Chris Hoy said: “Scotland is part of Britain – they are not mutually exclusive. I wouldn’t have three gold medals hanging round my neck if I wasn’t part of the British team”.

I believe that your world-beating companies are champions for the same reason.

So as businesses and as people in Scotland — and in England and Wales and Northern Ireland — we can go forward with our partners in the United Kingdom:

  • confident in our partnership, in its history and in its future.
  • stronger within it to face the challenges – and reap the rewards – of globalisation.
  • stronger and more prosperous – because we are together.

Gordon Brown – 2007 Lord Mayor’s Banquet Speech


This speech was made by Gordon Brown on 12th November 2007.

Tonight, I want to speak about Britain’s unique place in the new world. And where, as a result, our responsibilities lie; how our national interest can be best advanced; and what we can achieve by working together internationally and by contributing to building the strongest and broadest sense of common purpose.

In the 1820s the then Foreign Secretary George Canning said that he had ‘called the new world into existence to redress the balance of the old’. The order of the nineteenth century saw European empires spanning the globe. After World War Two a new international order was defined by the high stakes of the superpower nuclear stand off. Both these world orders shaped by political weight and military power.

In 1989 the old world order dominated by the Cold War came to an end. But how quickly events have disproved those who celebrated the end of the Cold War as ‘the end of history’. From Bosnia to Darfur, Rwanda to Afghanistan we have seen a level of disorder and uncertainty that no-one predicted. And no one foresaw the scale of the dramatic and seismic shifts in economy, culture and communications that are now truly global.

Our international institutions built for just 50 sheltered economies in what became a bipolar world are not fit for purpose in an interdependent world of 200 states where global flows of commerce, people and ideas defy borders. With such transformative change comes a clear obligation, but also a great opportunity, to write a new chapter — to set down for a new era a better 21st century way of delivering peace and prosperity.

Of course the first duty of Government – our abiding obligation – is and will always be the safety of the British people, the protection of the British national interest. And let me affirm our commitment that we will always be vigilant and resolute, never leave ourselves vulnerable, but will at all times support and strengthen our armed forces, our defences and our security. Yet the timeless values that underpin our policies at home – our belief in the liberty of all, in security and justice for all, in economic opportunity andenvironmental protection shared by all – are also ideals that I believe that it is in our national interest to promote abroad. But we do so in a changing world where six new global forces unique to our generation are demonstrating our growing interdependence and pressing the international community to discover common purpose.

First, few expected when the adamantine certainties of the Cold War came to an end, we would have to address the constantly changing uncertainties of violence and instability from failed states and rogue states. The spread of terrorism has destroyed the old assumption that states alone could access destructive weapons. As dramatic in a different way is a third force for change: global flows of capital and global sourcing of goods and services have brought the biggest shift of economic power since the industrial revolution – the rapid emergence of India and China as global powers with legitimate global aspirations. The new frontier is that there is no frontier.

The unprecedented impact of climate change transforms the very purpose of government. Once quality of life meant the pursuit of two objectives: economic growth and social cohesion. Now there is a trinity of aims:prosperity, fairness and environmental care. And as energy supplies are under pressure there is a new global competition for natural resources. New global forces at work – from pandemics to worldwide migration – make the task of overcoming the great social evils of hunger, illiteracy, disease, squalor and poverty even more challenging. And if, as Tom Friedman has written, the defining image of the 20th centurywas a wall representing division, the defining image of the 21st is a web championing connections — a world where we can rightly now talk not just of the wealth of nations but the wealth of networks. The web cannot be controlled in the end by any single force or any single leader. And what happens within it cannot be predicted from day to day.

George Orwell was not quite right: the technology revolution he foresaw is not a controlling force enslaving people, but for the most part a liberating force empowering them. In the old order power affected people but could not easily be affected by them. But once powerless people now have the potential to be heard andsee their impact felt in places far away. And because our world is now so connected and sointerdependent it is possible in this century, for the first time in human history, to contemplate and create a global society that empowers people.

Why do I believe this is not only possible but essential? Because we cannot any longer escape the consequences of our interdependence. The old distinction between ‘over there’ and ‘over here’ does not make sense of this interdependent world. For there is no longer an ‘over there’ of terrorism, failed states, poverty, forced migration and environmental degradation and an ‘over here’ that is insulated or immune.Today a nation’s self interest today will be found not in isolation but in cooperation to overcome shared challenges. And so the underlying issue for our country – indeed for every country – is how together in this new interdependent world we renew and strengthen our international rules, institutions and networks.

My approach is hard-headed internationalism: – internationalist because global challenges need global solutions and nations must cooperate across borders – often with hard-headed intervention – to give expression to our shared interests and shared values; – hard-headed because we will not shirk from the difficult long term decisions and because only through reform of our international rules and institutions will we achieve concrete, on-the-ground results.

Building a global society means agreeing that the great interests we share in common are more powerful than the issues that sometimes divide us. It means articulating and acting upon the enduring values that define our common humanity and transcending ideologies of hatred that seek to drive us apart. And critically – and this is the main theme of my remarks this evening – we must bring to life these shared interests and shared values by practical proposals to create the architecture of a new global society.

Through our membership of the European Union – which gives us and 26 other countries the unique opportunity to work together on economic, environmental and security challenges – and the Commonwealth, and through our commitment to NATO and the UN, we have the capacity to work together with all those who share our vision of the future. And I do not see these as partnerships in competition with each other but mutually reinforcing.

It is no secret that I am a life long admirer of America. I have no truck with anti-Americanism in Britain or elsewhere in Europe and I believe that our ties with America – founded on values we share – constitute our most important bilateral relationship. And it is good for Britain, for Europe and for the wider world that today France and Germany and the European Union are building stronger relationships with America.

The 20th century showed that when Europe and America are distant from one another, instability is greater; when partners for progress the world is stronger. And in the years ahead – notwithstanding the huge shifts in economic influence underway – I believe that Europe and America have the best chance for many decades to achieve historic progress —-

–working ever more closely together on the project of building a global society;

–and helping bring in all continents, including countries today outside the G8 and the UN Security Council, to give new purpose and direction to our international institutions.

And while no longer the mightiest militarily, or the largest economically, the United Kingdom has an important contribution to make. Just as London has become a global hub linking commerce, ideas and people from all over the world, so too our enduring values and our network of alliances, can help secure the changes we need.

Today, there is still a gaping hole in our ability to address the illegitimate threats and use of force against innocent peoples. It is to the shame of the whole world that the international community failed to act to prevent genocide in Rwanda. We now rightly recognise our responsibility to protect behind borders where there are crimes against humanity.

But if we are to honour that responsibility to protect we urgently need a new framework to assist reconstruction. With the systematic use of earlier Security Council action, proper funding of peacekeepers, targeted sanctions – and their ratcheting up to include the real threat of international criminal court actions – we must now set in place the first internationally agreed procedures to prevent breakdowns of states and societies.

But where breakdowns occur, the UN – and regional bodies such as the EU and African Union – must now also agree to systematically combine traditional emergency aid and peacekeeping with stabilisation, reconstruction and development.

There are many steps the international community can assist with on the ladder from insecurity and conflict to stability and prosperity. So I propose that, in future, Security Council peacekeeping resolutions and UN Envoys should make stablisation, reconstruction and development an equal priority; that the international community should be ready to act with a standby civilian force including police and judiciary who can be deployed to rebuild civic societies; and that to repair damaged economies we sponsor local economic development agencies —- in each area the international community able to offer a practical route map from failure to stability.

And just as we will continue to be a leading nation in negotiating nuclear arms reductions, so we must be at the forefront of meeting the challenge of preventing nuclear weapons proliferation. And with more sophisticated after-the-fact detection of the source of nuclear materials there must be a determination to hold to account both active providers and potential users.

I propose internationally agreed access to an enrichment bond or nuclear fuel bank to help non-nuclear states acquire the new sources of energy they need. But this offer should be made only as long as these countries renounce nuclear weapons and meet internationally enforced non-proliferation standards.

The greatest immediate challenge to non-proliferation is Iran’s nuclear ambitions, hidden from the world for many years in breach of the Non-Proliferation Treaty.

Iran has a choice – confrontation with the international community leading to a tightening of sanctions or, if it changes its approach and ends support for terrorism, a transformed relationship with the world.

Unless positive outcomes flow from Javier Solana’s report and the IAEA, we will lead in seeking tougher sanctions both at the UN and in the European Union, including on oil and gas investment and the financial sector. Iran should be in no doubt about our seriousness of purpose.

Small arms kill every 90 seconds so as we call for an Arms Trade Treaty, Britain is willing to extend export laws to control extra-territorial brokering and trafficking of small arms, and potentially other weapons. And having led the way by taking two types of cluster munitions out of service, we want to work internationally for a ban on the use, production, transfer and stockpiling of those cluster munitions which cause unacceptable harm to civilians.

To build not just security but environmental stewardship and prosperity free of global poverty, I want a G8 for the 21st century, a UN for the 21st century, and an IMF and World Bank fit for the 21st century.

And to achieve this I want to play my part in helping the European Union move away from its past preoccupation with inward looking institutional reform and I will work with others to propose a comprehensive agenda for a Global Europe – a Europe that is outward looking, open, internationalist, able to effectively respond both through internal reform and external action to the economic, security and environmental imperatives of globalisation.

I said my approach was hard headed because I am conscious of weaknesses in international institutions that need to be addressed, aware that while resolutions matter results matter even more, determined to judge success not by the number of initiatives in conference halls but by practical action for change, and resolute in my determination that we need fewer rather than more international bureaucracies. Indeed, we need a new network of change-makers – often non-governmental organisations – which deliver concrete action on the ground.

Long term but now also interim options must be examined to reform a UN Security Council – whose permanent members do not include Japan, India, Brazil, Germany, or any African country – to make the Council more representative, more credible and more effective.

The G8 has to increasingly broaden to encompass the influential emerging economies now outside but that account for more than a third of the world’s economic output.

And we need a new coalition of democracies and civic societies joining together as allies for progress, with leaders in politics, economics and civil society all pushing forward reform.

International efforts against terrorism are not a short-term struggle where we get by through ad-hoc improvisation: this is a generational challenge. Global terrorist networks demand a global response. And if there are to be no safe havens for terrorists, and no hiding places for those financing and harbouring terrorism, we should work for a concerted global strengthening of law enforcement, financial supervision and policing and intelligence cooperation.

Financial disruption in one country can now affect all countries. The IMF should be transformed with a renewed mandate that goes far beyond crisis management to crisis prevention – not only responsible in the manner of an independent central bank for the independent surveillance of the world economy but becoming its early warning system.

As we move to a post 2012 global climate change agreement, we need a strengthened UN role for environmental protection.

And while we strengthen the World Bank’s focus on poverty reduction, it must also become a bank for the environment. So as its new President Bob Zoellick has argued, it should recognise that the poorest countries are the most vulnerable to climate change – and help them to adapt and to finance low carbon economic growth.

Over the summer in places of turmoil as different as Darfur and Burma – where we will continue to pressure and persuade – the international community has shown how it can come together.

In Afghanistan we will work with the international community to match our military and security effort with new support for political reform and for economic and social development.

And today and together we call on President Musharraf of Pakistan to restore the constitution and implement the necessary conditions to guarantee free and fair elections on schedule in January; release all political prisoners, including members of the judiciary and human rights activists; to pursue energetically reconciliation with the political opposition; honour his commitment to step down as Chief of Army Staff; and relax restrictions on the media.

Nor will we shirk our obligations to the people and new democracy of Iraq and to the international community. As we move next month from our combat role to ‘Overwatch’ in Basra Province, we will support economic development to give the people of Basra a greater stake in the future.

And with the personal leadership of President Bush and the peace initiative involving all 22 states of the Arab League, there is potentially a window of opportunity to achieve – thanks to the political courage of Prime Minister Olmert and President Abbas – the creation of a viable Palestinian state alongside a secure Israel.

For this we need not only a road to Annapolis but a road from Annapolis: the December donors conference in Paris; Tony Blair’s painstaking work for which I thank him; and Britain’s economic road map for reconstruction in the West Bank and Gaza, in support of which the Foreign Secretary and the International Development Secretary will both shortly visit the region.

Whether in the Middle East or across the developing world, indifference to the plight of others is not only wrong, but not in our interests. That is why we continue to do all we can to reach a world trade agreement that will be of most benefit to the poorest.

But the global poverty emergency cannot be solved by one organisation or even a coalition of governments on their own: we now need the concerted efforts of private, public and third sectors working together —— a new public-private alliance founded on promoting trade and growth.

The injustices people inflict on one another are not god-given but man-made and we have it in our power to become the first generation in history to deliver to every child the long overdue basic right to education. And today we also have the science and medicine to be the first generation to eradicate the preventable diseases of TB, polio, diptheria and malaria — and eventually to cure HIV and AIDS.

And with a special UN meeting next year, it is my personal commitment to work with all people of goodwill to achieve these goals.

By history and conviction, we – Britain – are bearers of the indispensable idea of individual dignity and mutual respect. But we act to build a different, better world because we judge that it too is the best defence of our own future. We know that Britain cannot be a safe and prosperous island in a turbulent and divided world. A better world is our best security, our national interest best advanced by shared international endeavour.

So this is our message – to ourselves, our allies, potential adversaries and people who, no matter how distant, are now our neighbours: Our hard-headed internationalism means we will never retreat from our responsibilities. At all times justice in jeopardy, security at risk, suffering that cries out will command our concern.

From the early years of this young century we can already discern what Britain, the first multinational state, has always known: that success requires that people of different races, religions and backgrounds learn to live in harmony with each other.

We have already seen what our values have taught us: that progress depends upon openness, freedom, democracy and fairness. And we are finding that prosperity like peace is indivisible and to be sustained it has to be shared.

And we have learned too that without environmental sustainability, justice and prosperity are both imperilled and that the best route to long-term economic growth lies in action to tackle climate change.

These lessons are not an excuse to relax or rest or be complacent but a summons to act with utmost resolve. For the pressing challenge for Britain and for the international community is to harness these insights in a sustained endeavour to reform and renew our global rules, institutions and networks.

Upon this rests our shared future: a truly global society empowering people everywhere; not yet here, but in this century within our grasp.

Gordon Brown – 2007 Speech on Education


Below is the text of the speech made by Gordon Brown at the University of Greenwich on 31 October 2007.

Thank you very much. Can I say first of all what a pleasure it is to be here at the University of Greenwich today, to be here with Tessa Blackstone, who does such a wonderful job, to be able to congratulate all those involved with the university for everything that you have achieved, and to be here with people from all the different parts of the world of education, from students, to lecturers, to teachers, to head teachers, to parents – everybody interested in the future of education.

And I do want to congratulate Greenwich University which was inaugurated as Britain’s second polytechnic college many, many years ago, has been an innovator from the start, now a great university with 23,000 students, right at the heart of this local community, going from strength to strength, a great reputation for teacher training, pioneering initiatives to encourage local young people to think about going to university.

And so I believe there is nowhere more appropriate for me to talk about what this government is trying to do, and will try to do in future, to unlock the potential of every child and young person and help every young person in this country make the most of their talents for the future.

My school motto was ‘I will try my utmost’. The motto of the school in the next door town to me, which was at the heart of the mining community in my county was ‘Rise to the light’. And as I have travelled round the country I have seen just how aspirational and inspirational mottos that schools adopt can actually be. ‘No goal is beyond our reach’ – that is the motto of the Business Academy at Bexley; ‘The best in everyone’ – Paddington Academy; ‘Achievement Beyond Expectation’ – Branksome School in Darlington; ‘Excellence through endeavour’ – the Kennet School in Newbury; ‘To strive and achieve is to succeed’ – the Howard School in Medway. And all these school mottos, that they tell us something about the spirit of the age in which they were written they are not in my view simply mementos of the past, they are not just enduring statements of shared beliefs across our communities about the possibilities of progress, they are a declaration of faith in the future, schools saying in their mottos that education should make it possible for young people to bridge the gap between what they are and what they have it in themselves to become. And I believe that these mottos are a promise and a summons, they embody ideals and aspirations and they speak to a guiding belief that I think most of us hold that every child has a talent, every child can learn and so we must nurture and fulfil the potential of all.

Of course some mottos can be misunderstood. Brighton Hove and Sussex Grammar School, its motto was ‘Absque labore nihil’ which is ‘Without labour, nothing’. Funnily enough the school moved to new premises, the old building then became Brighton’s maternity hospital and their motto ‘Without labour, nothing’ was left on the façade.

Now I was fortunate. I went to a school that aimed high, a school that had an ethos of striving, hard work and achievement and that is what I want for every child in the country.

I have said education is my passion. Britain is full of talented people. I believe each young person has talent and potential, each has some gift to develop, each something to give to the good of the community. And the Britain I want to strive for is a Britain with no cap on ambition, no ceiling on hope, no limit to where your potential will take you, how far you can rise, a Britain where the talents of each of us can contribute to the well being and prosperity of all.

And this idea of excellence in education is not just a noble ideal, respecting the search for knowledge, the pursuit of wisdom and the fulfilment of human potential, it is also I think as everybody knows an economic imperative too.

In the past those countries who had the raw materials, the coal or the oil or the basic commodities, or the infrastructure, the ports and the communications, were the ones that had probably the most competitive advantage. Today what matters is who has the skills, the ideas, the insights, the creativity. And the countries that I believe will succeed in the future are those that will do more than just unlock some of the talents of some of their young people, the countries that will succeed will be those that strive to unlock all the talents of all of their people.

Now in the last 10 years we have moved from an education system which was below average in its performance to above average, but we now have to do much more than that. Our ambition must be nothing less than to be world class in education and to move to the top of the global education league, and it is time to say not just that we will aim high but that we can no longer tolerate failure, that it will no longer be acceptable for any child to fall behind, no longer acceptable for any school to fail its pupils, no longer acceptable for young people to drop out of education without good qualifications without us acting.

So no more toleration of second best in Britain, no more toleration of second best for Britain.

And I believe that to achieve that we must confront head on three assertions that I believe have held our country back for too long. The first is an assumption that there is only limited room at the top, that there is no point in educating everyone as far as their talents will take them because the economy simply needs only a few who are trained for the top.

Now I think the fast changing global economy has decisively defeated that argument. Even if in the past there might have been national limited room at the top, now there is clearly global room at the top. Indeed there are millions more skilled jobs and opportunities in our country and round the world for people with skills and qualifications. The young people we educate can and often do work anywhere in any part of the world and there is a virtually unlimited global demand for new talents.

The real challenge that we face is not no room at the top, but no room at the bottom. Unskilled jobs are disappearing. We have 6 million unskilled workers in Britain today, we will need only a half million of these 6 million jobs in 2020, 5.5 million fewer unskilled jobs and this disappearing demand for low skills and no skills and a rising demand for high skills explains why no young person can afford now to leave school without some skill or qualification.

I believe that Britain has often in the past also been held back by a second often heard assertion that ‘more means worse’, that to educate more and more young people is wasteful because they simply don’t have the talent to benefit. And instead of talking of a pool of untapped talent, some people have talked of a pool of tapped untalent.

And each year, even as more young people achieve GCSEs and A’ Levels, even as university and college opportunities are expanded, we often hear echoes of this ‘more means worse’ dogma, the assumption that when you get these results that only some can really achieve high standards and that high achievement in education is by definition limited and exclusive.

And I think this self-imposed limit on the idea about how talent can develop has been an historic curse of the British education system and it does go a long way to explain why too often we fall short of other countries.

Take university access. Other countries are already above 50% for young people going into higher education. Australia claims a graduation rate of 59%, yet many in Britain still say that even to aspire to going up to 50% is a recipe for dumbing down. And the result is that while we have some of the best world class schools and the best world class universities, still too many young people do not get an excellent education. And of course in Britain just 10% of the unskilled workers’ sons and daughters reach university and that is an attainment gap that has to be bridged in the modern world.

And if these notions of ‘more means worse’ are wrong, so too is a related view which is a more fatalist assumption that springs from the denial of aspiration: that there will always be schools that do badly, there will always be pupils who will never do well or even adequately, and when combined with an equally defeatist left of centre assertion sometimes that poor children can never overcome their disadvantage at school, it acquiesces in low expectations and then we put up with coasting and failing schools.

So my argument, and my starting point today, is it is time for Britain to leave behind once and for all this culture of pessimism, any acquiescence in defeatism, any acceptance of low aspirations that holds us back. Poverty of aspiration is as damaging as poverty of opportunity and it is time to replace a culture of low expectations for too many with a culture of high standards for all.

Now that is one of the reasons why in the summer we created a new Department for Children, Schools and Families. We wanted for the first time to be able to support children and young people in the round.

We all know that there are many other influences on our children’s development beyond school, and we all know I think that education must look at the whole picture. So since then the Secretary of State for Children, Schools and Families has been laying the foundations for the next stage of the transformation of education: how we will focus on classroom standards, ensure that we monitor exam standards rigorously, reform the qualifications system with announcements he has made for the monitoring of that to be independent, mobilise universities and businesses behind school improvement so that all contribute to the education of young people.

And it is building upon these changes that have already been made that I want to spell out what that idea of world-class education could mean for Britain in the 21st century. And I also want to show something more, that only by tackling these old prejudices, ingrained culture of low expectations, and by raising our sights for the future, can we make a reality of equality of opportunity for all children in our country.

In other words I think we need not just education reform to continue and intensify, but we need culture change as well. And what do I mean when I say this? For most of the 20th century the fundamental political divide was between a Left that believed that the extension of state action, command and control structures, could solve social problems and reduce inequality, and then there was the Right that believed that the state had to be rolled back for market forces and market incentives and rewards to be unleashed.

And in the social democratic tradition the state supplied services to people, it built schools, hospitals, houses, provided the funding to run services. But let’s be honest, we paid less attention to how people used these services than the capabilities people need to make the most of the opportunities available to them. We trusted professionals to deliver services, the public to accept them. People were treated sometimes more as passive subjects than as participants in change. The system was content to limit participation in the shaping and direction of public services to voting at election time. In the words of one historian, Peter Clarke, it was about mechanical reform, social change from above, not from below.

And then for its part the right-wing tradition viewed government as an obstacle to market forces, indeed in many ways it still does, reducing human motivation to self-seeking calculations in the market place, relying on civic virtue for charity in areas from where the state is then withdrawn.

I think we can say today that both of these positions are inadequate. We need both strong public services and we need a dynamic market economy to have a fair and prosperous society. Arguments about the size of the state and the funding of public services mark important dividing lines in politics, investment in public services in my view is absolutely critical. But we don’t believe in a zero sum game in which there is only one winner between state and market forces in advanced economies. Each, markets and government, have their place. Prosperity results from drawing upon the best strengths in each of them.

But that is not the end of the matter. For what those who placed their faith in either state or market too often ignored, is culture: the motivation, the values, the habits that influence us all in our daily lives, that influence our families and our communities. These are the values we share, the aspirations we have, the boundaries we set as communities between what is acceptable and unacceptable.

And I think we can now see that culture change is critical to achieving success in reforming public services, true in almost every area of public policy: preventative local health, to social care, community policing, tackling climate change. When we see that equality of opportunity can work to best effect, when people believe, such as on the environment, that they can improve things for themselves and are aspirational about what they want to achieve.

Public services can no longer be delivered to people without their engagement in them. Whether we aim to reduce carbon emissions or tackle obesity, or empower those people who are receiving social care, change will always be more effective if people participate and play their part.

So the bad news for the old thinking on both Left and Right is that culture matters. The good news is that cultures can change. And it is by promoting cultural change that we will ensure that many of the values that we share come alive in this 21st century.

So I think our goal must be simultaneously to expand opportunity, not just one chance but second, third and fourth chances for people throughout their lives, to raise the aspirations that people have to grasp these opportunities, that is the key to unlocking talent, and to develop people’s capabilities to participate in shaping the future so that services are personal to each but also shaped by people themselves.

On its own, equality of opportunity can never be enough. Opportunities are only meaningful if people have the capabilities, the resources, the aspirations to make the most of them. So inequalities in aspiration and in the capability to benefit from them must be tackled also. Without doing that fairer outcomes, the fairness which will shape the opportunities of the generations to come will not be achieved. But if we can expand opportunity, aspiration and participation together, then outcomes for pupils, parents and citizens will be fairer, the result of the choices we make, the hard work and effort we put in – not imposed by the accident of birth or the brute luck of circumstances. And it is in this way I think we will create a stronger, fairer society with excellence within the reach of everyone and not just the few. Talent nurtured, effort rewarded, the merit of each in the service of all.

Now what does that mean for how we move forward with our schools and our education?

Aspiration matters in every aspect of education: the aspirations of parents for their children from their very earliest years; the aspirations of young people, whether they are going to seize the opportunities available to them; the aspirations of course of teachers, of schools, of local government setting high expectations for achievement; the aspirations of society placing the highest possible cultural value upon learning itself; and of course aspirations of government that sets long term ambitions and matches those ambitions with the necessary investment over the long term to realise them.

Now just consider the evidence. We now know the level of parental engagement in learning is actually more important in determining a child’s educational achievement than the social class background, the size of the family or the parent’s own educational attainment. A child with a stimulating home environment does better on all the scores of early childhood development.

Conversely we know for example that teenage pregnancy is significantly more likely amongst girls whose mothers have low expectation for their education, even after controlling for other socio-economic factors.

Aspiration matters. But we have barely set out on the journey of involving parents in the education of their children and encouraging high aspirations as an explicit and central goal of policy.

Parents are worried about discipline, about bullying, about schools where children’s lessons are disrupted, and where there is not enough of a school ethos for learning to flourish and all children to succeed.

And I share all of these concerns. If we ask parents to get more involved in the education of their children, in the lives of their schools, we have to respond to these concerns, just as parents for their part need to reinforce the expectations for good discipline and the boundaries of acceptable behaviour set by head teachers for their schools.

So let us do more now to involve and engage parents at every stage of the journey of their children’s education, spread the best practice of the best schools, more regular real time feedback about their children’s progress, regular emails, regular meetings, more parent sessions at schools, to share information and to set goals at key transition points for children.

But it is not just parental involvement that can be expanded, young people’s aspirations matter too. In many ways the greater failure is not the child who doesn’t reach the stars, but the child who has got no stars that they feel they are reaching for.

And as every teacher knows, you can’t educate those you can’t easily motivate. But we know sometimes that helping boys in particular to aspire and aim higher comes up against in schools boredom, distraction, disaffection, a sense the classroom isn’t for them, the downward pull of peer pressure. So we have also to raise boys’ aspirations in education, provide education that can enthuse and engage, provide different opportunities for different kinds of vocational learning as young people prepare for the transition to the world of work.

And that lies behind much of what we are doing in diplomas. The very idea of personalised learning is about helping children become more aspirational, that we identify talent, we shape education around the unique needs and aspirations of every child, we engage pupils in their own learning and we give them a thirst for education and knowledge that will stay with them long after they have left school.

So we will expand our Gifted and Talented Learning Programme for children at school. We will give a million of our most talented children the opportunity to benefit from special and stretching tuition, we are boosting activities in those areas which can unlock so many different forms of talent: sport, music, the arts, culture, enterprise. We will continue to increase the number of student ambassadors from universities who work in schools: there are now 7,000 helping promote the benefits of higher education to younger pupils when they are still at school. And we will build on what is called our Aim Higher Programme so we increase the aspiration of many to go to university, just as universities are now encouraged to reach out into the schools and colleges, hold summer schools and other events to help lift young people’s sights towards higher education.

And because raising aspirations is at the heart of raising standards we will ask the National Council for Educational Excellence to work with schools and universities, the Sutton Trust and other organisations in this field, to report on how we can increase applications to universities from schools in disadvantaged areas.

So raising aspiration, encouraging the participation of parents and students is at the heart of our approach. But direct action to raise standards and to address failure is also fundamental.

I think we have come a long way in the last decade. Ten years ago there were no children’s centres like Sure Start, there were no nursery places for 3 year olds, there was no literacy hour in our primary schools, no guaranteed sports, arts and modern languages, no extended schools, no trust, specialist or academy schools in every area. There were no educational maintenance allowances so young people found it difficult in some areas to stay on in education beyond 16. There were few new school buildings which now today stand as beacons of aspiration, particularly in low income communities.

Now all of this, and more, has been achieved. But now as we develop what will be our 10 year Children’s Plan we need to move to the next stage in the transformation of standards in education in Britain, rising to the challenge of world class excellence.

Across the globe, as everybody knows, education standards are rising. Other countries will not stand still and are pushing forward and they are pushing forward the frontier of what a 21st century education can offer. Take Canada, or Finland, or Hong Kong. Almost all the children there achieve the required standard of literacy by 11. In Finland every teacher has to have a Masters Degree and 10 people apply for every place on a teacher training course. In South Korea only the brightest and the best are selected to enter the teaching profession. In Chicago, Boston and New York education leaders are now taking a systematic and relentless approach to tackling failing schools.

So the world is moving at this restless pace to transform education. And what appears to be world class now will soon of course appear to be second class in 10 or 20 years time. And that means that the strategic choices that we make today are going to be critical for our long term prosperity.

So I want us to learn all the lessons of excellence from round the world, that the very best education systems start with high quality affordable daycares and early learning, as in Scandinavia where children start school ready to learn because they have had excellent and highly professional pre-school care and development.

But as Michael Barber has shown, the best education systems recruit the best people into teaching – the top 5% in South Korea, the top 10% in Finland, the top 30% in Singapore and Hong Kong. In excellent schools the teachers receive continuous training and professional development to update their skills and expertise, and there is always strong leadership from head teachers with the autonomy to lead their schools. World class education, we know, achieves high standards for 100% of the children when there are systems of accountability, funding and pupil tracking that leave no child behind and personalised learning is tailored to the unique potential of every child with one-to-one tutoring and support. That world class education depends on a systematic intolerance of failure and a preparedness of public authorities to intervene and to innovate to eradicate failure; and in leading economies of course participation in learning or education is near universal up to the age of 18, skills investment is high and rising, and in all successful countries entry to universities and colleges is rapidly increasing.

So we must renew our ambitions also. And we will build on the improvements we have made in early years by extending entitlements to free nursery education, we will improve the quality of childcare and early learning, we should aspire to match the excellence we know exists particularly in the Scandinavian countries in early learning and daycare.

And then we will raise still further the status and standards of teaching. Everybody remembers an inspirational teacher, everybody knows that a good teacher makes all the difference, and there are many good teachers here this morning. And that is not just my personal experience but the personal experience I find when I talk to many people.

And research is absolutely conclusive about the importance of teaching standards. If you take a group of 50 teachers, a child taught by one of the best 10 will learn sometimes at twice the speed of a child taught by one of the worst 10. Teaching quality is that important.

Ofsted say we now have the best teachers ever in our schools today and they should be valued and applauded for their work. And now our goal should be even bolder, to have a world class teaching profession for all our pupils within a generation.

So we will do more to raise the quality of recruits into teacher training, we will expand routes into training for talented people in mid and late career with ‘Teach First’ followed by ‘Teach Next’ so that people can move into a teaching job later in career. We will build on these reforms with the aim of raising still further the status of teaching in Britain. We will match the rigorous selection of the brightest and best into teacher training that other countries are achieving and we will promote graduate opportunities for teachers to undertake professional training and development linked to performance assessment.

And this is my belief: that world class performance comes from consistent brilliance from teachers in every classroom, professionals who always seek continuous improvement; who teach better lessons tomorrow than they did yesterday because they are learning all the time; who when a pupil falls behind don’t assume it is a lack of ability but instead ask: how could I teach that material better to enable my pupil to master that?

And that is the challenge, we know, for the best teachers and we will assist them in rising to it.

But we should also work on the principle of social justice for all, that no child should be left out or lose out, that as we raise standards we also narrow the social gap attainment in education and that every child should be given the best chance to progress as far and as fast as they can.

And we have improved standards of schools in disadvantaged areas, but we have not made enough progress in closing the gap between individual pupils from different backgrounds. A ‘no child left out’ education system must work for 100% of the pupils 100% of the time, and that is a major undertaking for this generation.

So what accountability there is and what progress targets we have must prioritise success for all.

Now in primary education every child should reach the expected level in literacy and numeracy. If the best in the world can do it now, so should we. For those who say it is not possible, I say visit West Dunbartonshire, one of the most disadvantaged parts of Scotland. Ten years ago it took the decision to eradicate illiteracy in primary schools. In 2001 almost 1 in 3 left primary school functionally illiterate. Last year only 6% did so. Through sustained ambition, intensive intervention at every level it is on track to wipe out pupil illiteracy this year after a decade of raising standards for children.

And if West Dunbartonshire – one of the poorest parts of the country – can do it, so can the rest of the country. It means one-to-one catch-up in the 3 Rs to every pupil who needs it, with early intervention, ‘Every Child a Reader’, ‘Every Child Counts’, the new programme that Ed Balls has just introduced, ‘Every Child a Writer’.

And it means better school-based social and behavioural support for children with extra needs, building on the ‘Every child matters’ agenda.

And then for secondary school it must mean all pupils making good progress with setting by ability, stronger classroom discipline and real commitment to personalised learning. More one-to-one tuition, small group teaching, a personal studies tutor for secondary schools, more support for innovative teaching and learning strategies.

And we all know that the best schools already achieve superb results with personalised learning, the best schools are well led with innovative ideas, they increasingly operate as networks that link schools together and they spread best practice from school to school. And our goal must be a service that has the capacity and space to innovate and to personalise learning.

And as we start to move to personalised testing we must keep assessment under review to ensure it supports learning and achievement, and does not dominate teaching.

Every child is entitled to a decent school and a good education. So we must also put an end to failure. We have cut the number of failing schools dramatically in the last decade. In 1997 over 600 secondary schools had less than 25% of children getting 5 or more good GCSEs. Now instead of over 600, 26 do. But the latest figures still show that there are 670 schools where less than 30% of pupils get 5 A star to C grades at GCSE, including English and maths, and while that is down from 1,600 in 1997 there is still much to do.

So we must go further to end failure. And the Secretary of State for Children, Schools and Families has challenged local authorities to use new powers and this is a critical strategic role and challenge for local government.

In the next 5 years we will work to get all schools above 30% A star – C grades at GCSE, including in English and maths. And let’s be clear, many of these schools below this threshold are already improving, many have strong and determined leaders, many face the toughest challenges in our education system and we have to use the right mix of intervention and support to raise standards.

So we have put in place now a systematic plan of ever tougher measures for eradicating failure. It will start with annual improvement targets for all schools that are falling below the required threshold. There will be new incentives for the best teachers to teach in the toughest schools, including expanding the ‘Teaching First’ and ‘Teach Next’ programmes to have the best possible teacher intake for these schools.

Good schools will be brought in to help poorer schools under improvement networks that will be run by schools for schools, as the Specialist Schools and Academies Trust motto puts it. Warning notices to trigger intervention powers will include new interim executive boards to take over school management where there is failure. Complete closure or takeover by a successful neighbouring school in a trust or federation or transfer to academy status, including the option of taking over by an independent school will be an available power.

And there will be 150 more academies in the next 3 years, on route to our target of 400; more universities working with us to set up academies; more local authorities doing what Manchester, Birmingham, Oldham and others are doing – putting academies at the heart of their local school improvement plans; more independent schools setting up academies to take over failing schools.

And this is therefore a determined and systematic agenda to end failure that we will see through and we will not flinch from this task.

And our final goal for world class education for young children will be 100% success for young people to make the transition from school to college, to university or to skilled work. And every young person should know that they have something to aim for in their education. So at age18 or 19, each should graduate from school, college or an apprenticeship with good qualifications or a certificate on the way.

We have set out in the last few days a new vision for diplomas, designed alongside and with universities and businesses to meet the needs of the new century. And alongside the diplomas, as they grow in excellence we plan a radical overhaul of apprenticeships too. A new matching service, rather like the UCAS university service, so that young people in any area can be matched up with businesses that are wanting and offering apprenticeships in every area of the country; a widening of the number of employers who now join the apprenticeship programme and we build on the 130,000 employers in all parts of Britain who have signed up for apprenticeships; we make the public sector a better partner, which it hasn’t always been, in apprenticeships, including changes in Whitehall itself; and we place a legal duty on the Learning and Skills Council to provide sufficient apprenticeship places in every area so that we can end a situation in which there can be only 95 apprenticeships completed in Hackney but over 2,500 today in Hampshire.

And to drive aspirations up we will ensure that all those reaching 18 or 19 who want to go on to an advanced apprenticeship or further education and training have the resources they need.

Just as from this year two-thirds of university students will be able, under changes that we have announced, to apply for grants of up to £3,000, so too advanced apprentices will have a credit of at least £3,000 through a Skills Account to pay towards their costs. And from this year we are paying the college fees of young people up to the age of 25 studying the equivalent of A levels and giving access to an adult learning grant of £30 a week.

And all of this is possible against the backdrop of the legislation to extend training or education to the age of 18 by 2015 to bring us in line with the rest and the best in the world. We will offer financial support for those who could not otherwise afford to stay in education. We will not insist that young people stay in the classroom. They will be able to choose from clear pathways into the future: further study at school or college, an apprenticeship or work with time off for training.

And in the coming week the Secretary for Children, Schools and Families will bring forward his action plan to ensure that all young people are in education, jobs or training and we will offer new rights to young people matched by that new duty to be in education until 18.

And because we cannot afford to leave any young person behind outside work or study, and because we owe it to them to equip them for the world they are growing up into, this will be a priority of the government that every young person is offered a route forward in education as they grow from their teens into their 20s.

I make no apology therefore for saying that education is the best economic policy, and I make no apology for wanting every child and young person to be able to read, write and add up. But as we all know education has always been about more than exams, more than the basics, vital as they are and will continue to be. To educate, as we know, is to form character, it is to shape values, it is to liberate the imagination, it is to pass human wisdom, knowledge and ingenuity from one generation to the next, it is a duty and a calling.

As was said by one of the ancient philosophers, the mind is not a vessel to be filled, it is a fire to be kindled. And that is why we have such high ambitions. Not just because education is a matter of national prosperity, it is certainly that, it is because education is the great liberator, the greatest liberator mankind has ever known and the greatest force for social progress.

That is why it is my passion. That is why I want to see a Britain where every child can go to a world class school, supported by high aspirations and surrounded always by excellent opportunities. And that is why I want to see a Britain where every family has the right to participate in the education of their child and is encouraged with every chance to do so. And that is why too I want a Britain where every young person can see ahead of them a goal in life, the support they need to get there, and it is a Britain therefore where effort is rewarded, ambition fulfilled, potential realised, a Britain of high aspirations and a Britain of all the talents. And I ask all of you to enlist in this cause.

Thank you very much.