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PRESS RELEASE : Badenoch to push muscular approach to global trade on first DC visit [November 2022]
The press release issued by the Department for International Trade on 14 November 2022.
Trade Secretary will use first trip to Washington D.C. to promote importance of trade as a force for security and prosperity

Badenoch to meet key US political figures, members of Congress and investors during visit

Trade Secretary will also discuss how to get more women-owned businesses trading internationally at Washington Post Global Women’s Summit

Trade Secretary Kemi Badenoch MP visits Washington DC today (Mon 14 November) to promote UK-US trade and encourage western allies to do more together to future-proof the global economy against shocks.

On her first visit to DC in the role, she will make a speech at the free market think tank Cato Institute, telling US political figures that now is the time for allies to face down protectionism and promote strong trading alliances to challenge the increasing threat of authoritarian states.

She will say the UK and US will work together to future-proof their economies by shaping the global rules of trade, promoting more diverse, resilient supply chains, investing in cutting-edge technology that will support jobs of the future, and protecting our long-term energy security.

The US is the UK’s largest trading partner, and every day more than one million people get up and go to work for British companies in America, and almost 1.5 million people do the same for American companies in the UK.

Kemi Badenoch will use meetings on the Hill with senior representatives of both parties to make the case for boosting our transatlantic trade relationship even further in the years ahead.

Trade Secretary Kemi Badenoch MP said:

The US and UK share the same values – freedom and free trade – and the result is a partnership more important than any other in the world.

I’m in DC to boost our trading relationship further and work with allies on critically important issues like strengthening supply chains, protecting our long-term energy security and creating jobs in industries of the future.

Both the UK and the US know we cannot have security at home without security abroad, and we need to make the global economy resilient to future shocks. Now is the time to roll up our sleeves and show how muscular liberalism and free trade are a force for good in the world.

While there Trade Secretary Badenoch is due to meet with US Deputy Secretary of the Treasury Wally Adeyemo, and members of the House Ways and Means Committee and Senate Finance Committee.

She will also speak at a US Chamber of Commerce roundtable event with key US businesses to promote the UK’s low-tax, high-talent, business friendly environment and highly innovative economy.

Badenoch will also discuss how trade policy can break down barriers for women as business owners, entrepreneurs, and consumers at the Washington Post Global Women’s Summit, at which Hillary Clinton is also set to appear.

The visit follows a series of successful transatlantic trade talks between the UK and US which have delivered the removal of harmful 232 tariffs on UK steel, an end to the 25-year ban on British lamb, and the suspension of harmful 25% tariffs on UK products like Scotch Whisky.

The UK is also pursuing Memoranda of Understanding (MoUs) with individual US states to unlock barriers to business and pave the way for more UK and US businesses to invest, export, expand, and create jobs. We have already signed MoUs with Indiana and North Carolina this year, with more to follow soon and ongoing engagement with states including South Carolina, Oklahoma, Utah, Washington, Texas, and Oregon.
14/11/2022
Rishi Sunak – 2017 Speech on the Armed Forces Covenant

The speech made by Rishi Sunak, the Conservative MP for Richmond, in the House of Commons on 2 February 2017.

It is a pleasure to follow the hon. Member for Blackpool South (Gordon Marsden). I pay tribute to my hon. Friend the Member for Berwick-upon-Tweed (Mrs Trevelyan) not just for securing the debate but for the tireless work that she does for the armed forces in this House and beyond.

From the long winter of the Crimean war to the bloody waters of Gallipoli, the history of my constituency’s Green Howards Regiment is a shining reminder that the story of British liberty is inseparable from that of our military. It is an enormous privilege to represent the almost 1,500 veterans, service personnel and their families based around Catterick Garrison and RAF Leeming, yet for many years, despite their heroism, my constituents have too often found themselves at the back of the queue for public services. There will always be more that we can do, but in housing, education and employment, I am proud to say that the armed forces covenant and the work of this Government have moved us closer than ever to ensuring that the world’s finest armed forces are never penalised for their service.

Let me begin briefly with housing. Before the covenant’s introduction, retiring service personnel in my constituency often found that they did not meet the residency requirement to be considered for council housing. As a direct consequence of this Government’s action, I am pleased to report that that is now largely a thing of the past. I pay enormous tribute to Richmondshire District Council for its tireless work in this regard. However, although military families are used to having their lives uprooted when orders of a new posting come in, they are too often also used to finding inadequate housing when they get there.

In the most recent armed forces attitude survey, only 29% of military families said that they were satisfied with the quality of maintenance in service family accommodation. CarillionAmey’s failures to live up to the standards set out by the MOD have been mentioned before, and they are a betrayal of both the taxpayer and our armed forces. I very much welcome the action that the Government have already taken in condemning that failure. With the future accommodation model on the horizon, I am mindful that it will be a great comfort for my military constituents to know that the lessons of CarillionAmey’s shortcomings have been learned so that they will not be repeated. I also echo the concerns raised by my hon. Friend the Member for Canterbury (Sir Julian Brazier) about the FAM.

Let me turn next to education, a crucial area. With frequent school changes and parents left to manage alone during tours of duty, the sacrifices made by members of our armed forces are often felt hardest by their children. The Government have taken real action by introducing the service pupil premium—as we speak, that funding is helping schools across my constituency to meet the unique needs of military children. I also commend the Government for creating the education support trust, which funds North Yorkshire County Council’s excellent service pupils champions scheme. Thanks to the hard work of council leader Carl Les and Neil Irving, that has been an enormous success. I urge the Government to maintain the funding for that programme. My constituents welcome plans to expand Catterick to a super-garrison, but I urge the Minister to ensure that discussions with the local council begin as soon as possible so that we can ensure that adequate school places are made available when the additional soldiers and their families arrive.

My final point is about spousal employment. Fifty per cent of military personnel already cite the impact on their partner’s career as making them more likely to leave the services. The reason is that the husbands and wives of Britain’s servicemen and women represent a deep reservoir of talent that all too often goes untapped. That is a problem not only for families but for our economy, which is missing out on some of our nation’s most able and resourceful citizens. The work done by charities such as Recruit for Spouses, and the Government’s ongoing spouse employment support trial, is crucial to rectifying the situation. I hope very much that such work continues, and that it will remain at the heart of our thinking about the armed forces covenant.

The soldiers, sailors and airmen of north Yorkshire do not expect the path that they have chosen to be an easy one. All they want to know is that when they take on that burden, their Government will do what they can to make it just a little lighter. The annual covenant report makes it clear that we still have work to do, but with six years of success behind us, it is equally clear to me that it is this Government who can make that a reality.

13/11/2022
Rishi Sunak – 2017 Speech on a Coast to Coast National Trail Walk

The speech made by Rishi Sunak, the Conservative MP for Richmond, in the House of Commons on 7 March 2017.

I thank the hon. Gentleman for informing us of that wonderful link between the ironstone mines in his constituency and Big Ben. I did not know about that museum, and I would be delighted to visit it with him. I agree wholeheartedly that promoting the walk would have many knock-on benefits and bring people to our areas to enjoy all the things that we know about and take for granted, and which we would like to open up to the rest of the country and the world. I hope that will be the case.

VisitEngland estimates that those who go on walking holidays spend about £2 billion annually. For businesses in our constituencies, that makes the iconic status of the Coast to Coast a vital source of custom. During the election campaign I called into one such business—a local pub like only Yorkshire makes—in the village of Danby Wiske near Northallerton. The landlord told me just how important the walk is to the prosperity of his business. The hundreds of walkers who stop by for a well earned pork pie and a cold pint of Yorkshire bitter in the summer months are the difference between a loss and a profit for his business. He is not alone. Coast to Coast Packhorse in Kirkby Stephen is a successful local start-up that transports walkers’ luggage to their next stop. Businesses along the Coast to Coast, perhaps including the museum that the hon. Gentleman mentioned, tell the same story.

When we talk about infrastructure investment in this House, as the Government rightly do, we all have a similar image in our minds—gigantic bridges, high-speed railway and motorways—but for rural areas, infrastructure such as the Coast to Coast can be just as vital because it allows communities to capitalise effectively on their national assets. I know public money is tight, but national trail funding is an investment that would be repaid many times over, both in the long-term economic benefits it would generate and in the communities it would help to sustain—communities whose hands repair our dry stone walls, tend our forests and keep our fields green and lush. If they were to disappear because of a lack of jobs of investment, every one of us would be poorer.

Natural England is currently focused on its coastal path project, due to open in 2020—an ambitious national trail that showcases the best of our coastal areas. As that programme moves towards completion over the coming years, I urge Natural England to look closely at finally giving the Coast to Coast the recognition it deserves. For now, a feasibility study would reflect the widespread support that the campaign has received and support the message of so many businesses from St Bees to Robin Hood’s Bay. Officially promoting and protecting the route would do so much for their prosperity.

The Coast to Coast route is part of the legacy of a unique man whose contribution to the natural world is unparalleled. Across mountains and fells, wandering through valleys and villages, it is an inspirational crossing of the north of England. In the words of Alf Wainwright himself:

“Surely there cannot be a finer itinerary for a long-distance walk!”

I hope the Minister will consider the case that the “Make it National” campaign has put forward and do all he can to encourage Natural England to launch a feasibility study as soon as possible. The Coast to Coast is already a national treasure. It is time to recognise it as a national trail.

13/11/2022
Rishi Sunak – 2017 Speech on the Budget

The speech made by Rishi Sunak, the Conservative MP for Richmond, in the House of Commons on 9 March 2017.

It is a privilege to speak in this debate. In all the excitement from Fleet Street, it would be easy to forget who yesterday’s Budget is really about, so I will share with the House how many of my constituents will feel about it. Whether it is the schoolboy with a first-rate technical education who will now have the chance of a better job and a solid wage, the small business owner who knows that when she speaks up her Government listen, or the mother who knows there is a Conservative Chancellor at the helm making the difficult decisions so that her children have well-funded public services and a country that lives within its means, for the hard-working people of North Yorkshire this is a Budget that delivers where they need it most.

Norman Lamb

How does that schoolboy or schoolgirl feel about an 8% cut in funding per student by 2020 under this Government?

Rishi Sunak

I am not sure that I recognise the right hon. Gentleman’s figure. The schools budget has been protected, and the Government are rightly consulting on the iniquity in the current funding system which means that constituents in my rural area are worse off to the tune of hundreds of pounds per pupil compared with very similar pupils in other parts of the country. I am delighted that the Government are addressing those iniquities in their consultation.

Seema Malhotra

Will the hon. Gentleman give way?

Rishi Sunak

If the hon. Lady does not mind, I will make some progress and come back to her.

I begin with small businesses. My predecessor, Lord Hague, has a well-documented enthusiasm for beer, so it will come as no surprise to Members that pubs are a cornerstone of my rural constituency’s economy. Following in his footsteps is difficult enough, but it is impossible for me to visit a pub in my constituency without seeing a picture on the wall of William pulling a pint with the landlord. Not only is my constituency home to more than 200 pubs, but I am proud to say that it hosts the Campaign for Real Ale’s 2017 pub of the year: the community-owned George & Dragon in Hudswell. I was delighted to be in Hudswell just last Friday when the landlord Stu Miller, his family and team received their award in the loud company of everybody from the village.

In recent months I, like many other hon. Members, raised concerns that the revaluation of business rates risks penalising such small, enterprising businesses. I am delighted to say that this was the Budget of a Chancellor who, like any good barman, listens to our concerns. For the landlords who run them, the jobs that depend on them and the communities that enjoy them, this Budget’s £1,000 business rate discount will make a real difference to many pubs at a time when money is still tight.

But pubs are not the only rural businesses that the Budget will help. Auction marts and livery yards across North Yorkshire have seen particularly steep rises in their business rates because the idiosyncrasies of such companies are not well understood by officials and because the last revaluation coincided with the disastrous foot and mouth epidemic. Such idiosyncrasies are more than even the most ingenious civil servant could be expected to foresee. Auction marts, livery yards and riding schools are particularly important to the fabric of our rural community, so I thank the Chancellor for the extremely welcome creation of the new £300 million discretionary business rates fund, which will put decision making back in the hands of communities and allow businesses in constituencies such as mine to benefit from the local knowledge of councils in ensuring a smooth transition to the new schedule.

Stephen Doughty

The hon. Gentleman was talking about pubs, and he will know that I am a keen pub goer. Indeed, I was in a pub in his constituency the other day, enjoying a pint with my cousins. What does he have to say to customers in pubs, who are going to face a 3% increase in the price of a pint?

Rishi Sunak

What I say to customers and to the hon. Gentleman is that I am sure that the Minister doing the wind-up will be able to say how much better off customers are from having benefited from several years of freezes in beer duty that would otherwise have been put in place. I am sure they would also like to hear that this Government will be consulting on new duty rates for white cider and still wine to see what more could be done to help customers who drink those alcoholic beverages. Lastly, let me say that I would welcome him back to my constituency any time and will be happy to share a pint with him next time he is there.

Seema Malhotra

I have not yet been to a pub in the hon. Gentleman’s constituency, but I recognise the benefits for pubs in my constituency. May I extend the question about customers in pubs, many of whom may be self-employed? Have they reflected with him on their concerns about the proposed rise in national insurance?

Rishi Sunak

I thank the hon. Lady for raising that issue. If she will allow me, I will deal with that exact point later in my speech.

The last measure in support of local businesses that I wish to highlight is the £690 million fund available for local authorities to address urban congestion. Congestion is not something one would ordinarily associate with the rural idyll of North Yorkshire’s villages and market towns, but the residents and community of Northallerton are relentlessly frustrated by the level crossing near our vibrant and diverse high street, as its impact on local business is substantial. I have convened meetings of local authorities and Network Rail to discuss plans to alleviate the congestion, and I very much hope the Chancellor’s new fund can help us.

As the Chancellor so rightly pointed out in his Budget speech, supporting our businesses is a means to an end, not an end in itself. If our children are to benefit from the more than 2 million new jobs created since 2010, they will need the right skills. The 2.4 million apprenticeships created in the last Parliament are a momentous achievement, but we must also recognise that although most of us think of apprentices as young people, 16 to 19-year-olds—school leavers—account for less than 10% of the increase in new apprentices. That means that too many school leavers are still sticking with an inappropriate classroom education rather than a first-class technical one. The Chancellor’s announcement of new T-levels is a crucial step in redressing the balance and closing for good the gap between the classroom and the factory floor, for which our economy has paid a high price for too long. I therefore welcome the new half a billion pound investment in increasing training hours, the streamlining of technical qualifications, the provision of high-quality work placements and the introduction of maintenance loans. Taken together, that is a powerful package to help to ensure parity of esteem between technical and academic education.

Yet I also urge Ministers to continue to look carefully at my campaign, supported in the recent industrial strategy, to create a UCAS-style system for apprenticeships. This branded, one-stop-shop portal would not only end the classroom divide between those applying to university and those applying for apprenticeships, but, by bringing everything together in one place, help businesses to connect more easily with young apprentices in schools.

Turning to national insurance, I, like many Conservative Members, have always believed in low taxes as a spur to economic growth, but when a Government inherit a deficit of £100 billion the greatest priority must be returning to sound finances and doing so in a way that is fair. I believe it is right that those who benefit from public services make an appropriate contribution to paying for them, and that is what this Budget’s changes to national insurance will ensure. Sixty per cent. of self-employed workers—those earning less than £16,000—will see a decrease in their national insurance contributions as a result of the removal of the regressive class 2 band. Workers earning up to almost £33,000 will be no worse off when these changes are taken together with the increases to the personal allowance, and for those earning more the average increase in contributions will be a few hundred pounds. It is right to ask: is this fair? I believe that it is.

Historically, different rates of national insurance for the self-employed and the employed reflected significantly different benefits and access to public benefits, but that difference is no longer there. Indeed, changes to the state pension, which is partly funded by national insurance, mean that self-employed workers now benefit from an extra £1,800 annually in pension—this is something they would need to save up to £50,000 for to receive in the private sector. Similarly, self-employed couples starting a family can now benefit from almost £5,000 in tax-free childcare support.

In this House, I always hear calls for investment in public services, such as this Budget has provided for in social care, but those investments need to be paid for. Her Majesty’s Revenue and Customs has estimated that it is losing about £5 billion a year from the increasing trend of self-employment, so it is right that we make small changes to ensure that everybody contributes to the public services and benefits we value. It is important to recognise that even after these changes the tax system will still recognise the particular issues faced by self-employed workers and will favour them in its tax rates and treatment. They will benefit from a lower rate of national insurance than employees; they will still not bear the cost of employers’ national insurance, which is levied at a substantial 13.8%; they will still have the ability to offset losses and gains over years; and they will still benefit from a more generous treatment of tax-deductable expenses. I am also encouraged that in the longer term the Government are committed to looking at the whole issue of the increasing trend towards self-employment, and to ensuring that we reflect those changes in the economy in our tax system and ensure that everybody is treated fairly. This small change is thus necessary to protect the things we value, and it is fair and proportionate.

In conclusion, we have all learned to be a little cautious of economic forecasts, but if the Office for Budget Responsibility is right, the first students to sit their T-levels will do so in a country with 1 million new jobs, double today’s productivity growth and, for the first time in two decades, national debt falling as a percentage of GDP. This Budget, like the ones that came before it, is building a country where our businesses will not have to pay for the profligacy of the past and our children can look forward to a bright future. Nothing could be more important than that, so I commend this Budget to the House.

13/11/2022
Rishi Sunak – 2017 Parliamentary Question on Free Ports

The parliamentary question asked by Rishi Sunak, the Conservative MP for Richmond, in the House of Commons on 18 April 2017.

From Merseyside to Teesside, ports are a great northern success story. Will my right hon. Friend look into the potential for the creation of free ports throughout the United Kingdom? Free trade zones would increase trade, create manufacturing jobs and boost regional growth, which are all key ingredients of our future economic prosperity.

Mr Hammond

My hon. Friend has made the case for free ports, and the Government have heard that case very clearly. We will consider all options that have the potential to support our ambition to see Britain as a great global trading nation, but before making any decisions we shall need to consider carefully not only the advantages that free ports can deliver, but the costs and potential risks associated with them.

13/11/2022
Rishi Sunak – 2017 Speech on the Finance Bill

The speech made by Rishi Sunak, the Conservative MP for Richmond, in the House of Commons on 18 April 2017.

From the discovery of Australia to the invention of the cat’s eye, the history of Yorkshire’s people is nothing if not entrepreneurial. That spirit is alive and well in my constituency in particular. From Heck sausages to Tennants auction house and the Wensleydale Creamery, ambitious SMEs are at the heart of our community and economy. Before I arrived in this place, I spent my career investing, backing businesses like those with the capital they needed to grow. I am delighted that this Finance Bill recognises what my years in the investment industry taught me—that ready access to finance is the fuel of success for ambitious SMEs, just as successful SMEs are the fuel of a prosperous economy. Yet, as I have said in the House before, the UK funding landscape for growth businesses presents challenges.

Just 3% of British companies manage to expand beyond 10 employees—half the success rate of businesses in America. The UK has a relatively shallow bond market for early stage businesses, and a venture capital sector that is just a seventh the size of America’s. British entrepreneurs often face an uphill struggle to attract equity risk capital. That is why the Government have enhanced the enterprise investment scheme and created the seed enterprise investment scheme. Since their inception, these programmes have together helped more than 3,000 companies to raise more than £15 billion in early stage finance. The Finance Bill builds on that success to ensure that these schemes help even more small businesses to access investment, grow and create jobs.

Under the current regulations, shares with a right to future conversion are unfortunately regarded as a pre-arranged exit, making them ineligible for EIS and SEIS. But that goes against the reality of conversion arrangements. Far from opening the door to tax avoiders, conversions are often a crucial mechanism for facilitating an initial public offering. If an SME has the ambition to accelerate its growth through accessing the public markets, the Government should not stand in the way. I am pleased to say that the Bill addresses that anomaly. However, there is more we can do.

Many lawyers, accountants, investors and entrepreneurs say that the EIS process is often too complicated and takes too long. The Government’s recent consultation on the advance assurance service, which lets HMRC assess a firm’s EIS eligibility before it seeks funding was welcome, and provoked ideas about what we can do to speed things up. First, I can see the logic for introducing some form of fee for advance assurance. This would help to raise the resources necessary for HMRC to provide a smoother service with greater transparency around processing times and specific dates for document review. Secondly, we could look at the use of standardised documentation, which would save time and money for all participants, enabling HMRC to speed up its approvals.

Thirdly, we must look at how to simplify the EIS rules and their interpretation. Of course, provisions must be made to stop tax avoidance, but the widespread view of practitioners is that the pendulum has swung too far the other way. In the words of one leading venture capital lawyer, there are now “too many gotchas” in the current set of rules. In general, it is the view of the EIS Association, admirably chaired by Lord Flight, that a large part of the reason for this complexity is the need for our laws to comply with EU state aid rules. I hope that when we leave the European Union, the Government will have the opportunity to look at simplifying the EIS rules and ensure that our SMEs get the capital they need to flourish.

I will briefly touch on two other points in the Bill: tax reliefs for sports clubs and companies donating to them; and museums and touring exhibitions. The internet enables us to be so much closer, but we cannot replicate the presence of being close to a Barbara Hepworth sculpture or looking at Shakespeare’s first folio. The Government’s incentives to take exhibitions around the country will enable us all to share in our cultural history and heritage.

When it comes to backing small businesses, this Finance Bill—like the others that came before it—shows wholeheartedly why this Government’s record is unmatched. As the British voters decide in the next few weeks who can best steward Britain’s economy, I commend this Bill to the House.

13/11/2022
Rishi Sunak – 2017 Parliamentary Question on the Friarage Hospital

The parliamentary question asked by Rishi Sunak, the Conservative MP for Richmond, in the House of Commons on 4 July 2017.

Last week I met doctors and nurses at the Friarage, an excellent small hospital serving a rural population spread over 1,000 square miles. Will my right hon. Friend urge South Tees Hospitals NHS Foundation Trust to do everything it can to ensure the continued provision of emergency care clinicians and anaesthetists at this vital local hospital?

Mr Dunne

I am aware that my hon. Friend has taken a strong interest in the number of consultants and anaesthetists available at the Friarage hospital. I will be happy to meet him to discuss his concerns in person.

13/11/2022
Rishi Sunak – 2017 Parliamentary Question on Reducing Protectionism

The parliamentary question asked by Rishi Sunak, the Conservative MP for Richmond, in the House of Commons on 6 July 2017.

I thank my right hon. Friend for giving way and for his powerful and optimistic speech on free trade. On reducing protectionism, does he agree that leaving the customs union will give us the ability to reduce import tariffs on many goods that we do not produce here at home, which will reduce costs for ordinary working families and benefit many developing countries by helping them trade into prosperity?

Dr Fox

That is an important point. At this morning’s International Trade questions, we made the argument that being outside the common external tariff will give us freedoms to help many developing countries in a way that we are currently unable to. I hope that that will act as a spur to others taking similar measures, because we will encourage poorer countries to trade their way out of poverty and become less dependent on international aid programmes. I do not think that that is a party political issue, but the question is how best to achieve it in practice.

On the progress that has been made, we have reduced poverty levels to their lowest in history. As the world’s emerging economies have liberalised trade practices, prosperity has spread across the globe, bringing industry, jobs and wealth where once there was only deprivation. According to the World Bank, the three decades between 1981 and 2011 witnessed the single greatest decrease in material deprivation in human history. It was a truly remarkable achievement.

The Leader of the Opposition has accused the Prime Minister of following “free trade dogma”. He went on to say that this has often been pursued at the expense of the world’s most fragile economies. In fact, any economist worth their salt can see that free trade has been one of the most potent liberators of the world’s poor. Let us take India as a specific example. In 1993, about 45% of India’s population sat below the poverty line as defined by the World Bank. By 2011, it was 22%—too many, but a phenomenal achievement. It is no coincidence that, in the intervening period, India had embraced globalisation and started to liberalise its economy. It is hard to imagine an international aid programme—even one as generous as our own—that would or could have been so effective on its own.

Sadly, it is also easy to find examples of where a lack of free trade has harmed the most vulnerable. If we want to see the contrasting results of open and closed economies, we should look across from China to the Korean peninsula, where so much attention is focused today. In 1945, both North and South Korea began from a very similar base, but while South Korea was more embracing of open trade and free markets, despite any shortcomings, Pyongyang turned inwards, with the tragic consequences for its citizens that we see to this day. [Interruption.] I am happy to give way to the hon. Member for Bishop Auckland (Helen Goodman) if she thinks that North and South Korea enjoy the same living standards today.

13/11/2022
Rishi Sunak – 2017 Parliamentary Question on “Living Within Our Means”

The parliamentary question asked by Rishi Sunak, the Conservative MP for Richmond, in the House of Commons on 18 July 2017.

The Chancellor will be aware that the current cost of Government borrowing is at a historical low, with gilt yields at 1%. Does he agree that, if markets lose confidence in our ability to live within our means, the cost of that borrowing would spiral, costing us billions of pounds? That would mean less to spend on our public services.

Mr Hammond

My hon. Friend is right to warn of the danger of a loss of market confidence in UK fiscal policy—I am looking very hard at the right hon. Member for Hayes and Harlington (John McDonnell). If markets lose confidence in UK fiscal policy, they will re-price lending to the United Kingdom. We already spend more every year on servicing our debt than on our armed forces and police services together. It would do a huge disservice to taxpayers in this country if we created conditions that would cause the cost of that debt to rise.

13/11/2022
Rishi Sunak – 2017 Speech on Universal Credit Roll-Out

The speech made by Rishi Sunak, the Conservative MP for Richmond, in the House of Commons on 18 October 2017.

I believe our welfare system should do three simple things. It must be compassionate to those who need our help, it must be effective in getting them the help they need, and it needs to be fair to those who pay for it. Simply put, universal credit is a rare example of a policy that delivers on all three counts.

To start with compassion, rather than recipients having to make calls to up to three different agencies when something in their life changes, universal credit simplifies the system and ensures that nobody misses out on a benefit that they are entitled to because of a bureaucracy that is simply too complicated to navigate.

Dr Philippa Whitford (Central Ayrshire) (SNP)

Is the hon. Gentleman aware that people trying to claim universal credit have reported being on the phone for an hour trying to get their case dealt with? At 55p a minute, that cost is astronomical.

Rishi Sunak

I am sure that the hon. Lady was here and heard the Secretary of State make the point that the calls that have been made were all to local rate numbers. It is not right to say that they were premium rate numbers. As of today, those calls have been made free for all claimants, although they were offered the opportunity to be called back for free if the call charge was difficult. I am aware that the average wait time is two minutes, and of course a wait time of an hour is unacceptable. I am sure Ministers have heard that and will be doing everything they can to ensure that everyone across the country benefits from a prompt and cheap response.

At the same time as simplifying the system, universal credit humanises our bureaucracy by recognising that those who need our help do not have exactly the same needs. Instead of a faceless homogeneity, for the first time personalised work coaches can compassionately take into account the specific needs of each individual and their specific circumstances, tailoring the approach to them and ensuring that they get the specific help that they need.

Neil Coyle

How simplified, fair and supportive does the hon. Gentleman think it is for the 116,000 working disabled parents who are set to lose £40 a week from the disability income guarantee?

Rishi Sunak

I cannot say that I recognise that figure, because £700 million more was made available in the last set of universal credit reforms, all of which was directed at the most vulnerable in our society.

Neil Coyle

Will the hon. Gentleman give way again?

Rishi Sunak

No, I will carry on, given the number of people who want to speak.

Compassion alone is not enough. The effectiveness of our welfare system should be properly judged by the number of lives that it transforms, and that transformation comes from well-paid work. Universal credit ends the well-documented problem of single parents effectively working for free if they want to work for more than 16 hours. Universal credit ensures that all work truly pays, and it is working. Compared with the system that it replaces, claimants spend twice as much time actively looking for work and, for every 100 claimants who found employment under the old system, 113 will find employment under universal credit. In reality, the lives of more than 250,000 people will be transformed over the course of the roll-out through having a decent job and the opportunity to build a stake in our society.

Finally, universal credit is fair to the people who pay for it. In Britain today, we spend around twice as much on working-age welfare as we do on education. To put it another way, for every £1 that the taxpayer sends to the NHS, they also send £1 to the working-age welfare bill. Given the sums involved, I make no apology for speaking up for those who ask me, “Is this money well spent?”

Sarah Jones (Croydon Central) (Lab)

The hon. Gentleman talks of the transformational impact of universal credit, so will he please comment on the transformation for my constituents? In Croydon, two thirds of families in local authority housing are now in rent arrears and face eviction, compared with less than a third before universal credit was introduced.

Rishi Sunak

I obviously cannot comment specifically on what is going on in Croydon, but the reasons for rent arrears are complicated. The evidence shows that the level of rent arrears after three months of universal credit is exactly the same, if not lower, than under the old system.

Returning to the sums involved, universal credit ensures a responsible and sustainable system by putting in place a sensible regime of conditionality. That gives hard-working taxpayers the confidence that when they contribute to the system, not only will that help somebody to get back on their feet, but that the person will also have a responsibility to do their bit. That is fair.

Universal credit is not perfect—no system so large and complex can be—and we should make improvements where we can, but it is significantly better than what it replaces, and the fundamentals of what it is trying to achieve are sound. It has been implemented slowly and methodically. It is insane to argue that it has been rushed when the full roll-out will have taken almost a decade from start to finish. This is welfare reform in action: making things simpler, ensuring work pays, and transforming lives. I urge the Government to carry on with their plan.

13/11/2022