Category: Economy

  • Gordon Brown – 2004 Speech at the Joseph Rowntree Lecture

    Gordon Brown – 2004 Speech at the Joseph Rowntree Lecture

    The speech made by Gordon Brown, the then Chancellor of the Exchequer, on 8 July 2004.

    Our Children Are Our Future – Joseph Rowntree Lecture

    It is a privilege to be here today to deliver the Joseph Rowntree Foundation Centenary Lecture and let me begin by paying tribute to one hundred years of service to our community by the Rowntree Foundation.

    Born out of Joseph Rowntree’s concern and Christian outrage about poverty and deprivation.

    Built by the dedicated commitment of people who had a vision of the world not as it was but as it could be.

    And today widely acknowledged to be at the heart of what I can call the nationwide crusade for justice for the poor, with not just an established and well deserved reputation for authoritative research that consistently shines a spotlight on the needs of our country’s families but a path-breaking role in finding practical solutions – that started with pioneering developments in housing and community regeneration and now extends into not just housing and community regeneration but innovative forms of care for the young, the  elderly and the disabled.

    So in a century of service, the Rowntree Foundation, always rooted in values of public service, always driven forward by ideas and often painstaking research, always a tangible national expression of compassion in action – taking its rightful place as one of the great British national institutions.

    So I want today at the outset to congratulate all of you – board, staff, supporters, campaigners – on your years of progress and achievement.  And I hope you can be proud that your concern – poverty; your mission – to shock the nation into action against poverty; and your driving ambition – the eradication of poverty — for far too many years a call for justice unheard in a political wilderness, is the ambition now not just of your organisation but now the ambition of this country’s Government.

    And let me also say today that I am humbled not just to deliver this lecture to this Foundation but to address a gathering of so many people who have served our communities and country with such distinction, men and women here today in this audience so distinguished in their own spheres of service  – charity workers, social workers, community activists, academics, researchers, NGO leaders.

    You have not only worked year after year to tackle social evils but have worked tirelessly in some of the most difficult circumstances, keeping the flame of compassion alive often in some of the least propitious times and in some of the darkest and most challenging corners of our community. So especially for those who have toiled at the front line – often with few resources and little support — let me place on record my appreciation of the service so many of you give – of the work you do, the contribution you make, the dedication you show and the real difference you make.

    Let us think back to the conditions Joseph Rowntree surveyed one hundred years ago. The first building blocks of the modern welfare state yet to be established, the Lloyd George People’s Budget still a few years away, but Victorian and Edwardian society starting to discover the full scale of poverty in their midst. And Winston Churchill – who went on to introduce the first minimum wage – appalled by the huge gap between what he called the excesses of accumulated privilege and the gaping sorrows of the left out millions.

    And about Joseph Rowntree we could have no doubt: an idealist not a dreamer; an enthusiastic reformer not a reluctant donor; and in his lifetime and through the foundation he created we can genuinely say that he led the way in four areas vital to the development of our social services and the fabric of our community life.

    First, his plea – and I quote – that we ‘search out the underlying causes of weakness or evil in the community rather than remedying their more superficial manifestations’.  You might call it tough love: his rightful insistence that we tackle the sources of poverty and not just their consequences, that we should focus on the eradication of the evil of social injustice and not just compensate people for its existence.

    Second, Rowntree’s insistence on an evidence based approach. Indeed his Foundation is a monument to one man’s conviction that the lives of countless fellow citizens can be improved by the intelligent application of knowledge and then policy to one of the greatest social evils and one of the greatest moral challenges of the day.

    And that led thirdly to an understanding of the multiple causes of poverty, and the multidimensional nature, of poverty. And although there have been many changes in the last 100 years – for when he began there was no sickness benefit, no state pensions, no unemployment benefit and no National Health Service – I am struck by the fact that the multiple challenges that Rowntree identified in his ‘Founders Memorandum’ still remain relevant today – the challenge of poverty itself, of bad housing, poor education, neighbourhood renewal.  And you could say that he understood what was meant by multiple deprivation long before the term was even invented.

    And finally it led him – and the Foundation – to pioneer an understanding of the life cycle of poverty.

    In 1904, Rowntree described that tragic life cycle – of poverty during childhood, poverty for parents when they had children and poverty during old age. A lifecycle of poverty broken only by the short periods where you were an adult before your children were born or an adult whose children had grown up and left home.

    And the striking truth about what we found in 1997 was how firmly and how widely this ‘life cycle of poverty’ had returned.

    And I believe that Rowntree would agree that addressing the multiple causes of poverty and the life cycle of poverty in our times, demands we be far bolder than the philanthropists of 1904.

    Let us recall that in 1942 – nearly 40 years after the Rowntree Foundation was set up and in response to some of its pioneering work – Sir William Beveridge identified five evils – want, idleness, ignorance, squalor and disease – which a new welfare state had to confront.

    But because we are interested in the potential of every person, our goal today – inspired by Rowntree – must be even more ambitious than the one Beveridge set us in 1942 when he listed his five evils:

    • Instead of simply attacking idleness and unemployment, our goal is the genuinely challenging goal of full and fulfilling employment;
    • Instead of simply attacking ignorance, our goal is the more ambitious goal of lifelong education for all;
    • Instead of simply attacking squalor, our goal is high quality affordable, housing for all and not just houses but strong and sustainable communities;
    • Instead of simply tackling disease, our goal is not just an NHS there when you need it but health and social policies that can prevent as well as cure disease and
    • promote good health;
    • Instead of just securing freedom from want – which meant sufficiency and minimum standards – our goal is the development of the potential of all to secure prosperity for all.

    And in addressing these great challenges, our objective must be to ensure not only dignity for the elderly in retirement and the chance for all adults to realise their potential but that every child has the best possible start in life.

    And it is on the needs of children and the challenges ahead that I want to concentrate my remarks on policy today.

    Equality of opportunity

    Our starting point – the same starting point as Rowntree – is a profound belief in the equal worth of every human being and our duty to help each and everyone – all children and all adults – develop their potential to the full —- to help individuals bridge the gap between what they are and what they have it in themselves to become.  It is that belief that for the Rowntree Foundation is a summons to act and a call to duty.

    And if in our generation we are to ensure each person has the chance to develop their potential, it is clear that as a society we must develop a more generous view of opportunity than the old idea of a single chance to get your foot on a narrow ladder – one opportunity at school till 16 – followed by an opportunity for a minority to go on to Higher Education — which for millions of people in Britain meant rejection by 16, that if you had missed that chance it was gone forever.

    It is simply a denial of any belief in equality of opportunity if we assume that there is one type of intelligence, one means of assessing it, only one time when it should be assessed and only one chance of succeeding. It is because neither potential nor intelligence can be reduced to a single number in an IQ test – and because ability should never be seen as fixed – that no individual should be written off at 7, 11 or 16 – or indeed at any time in their life.  Justifying a far richer and more expansive view of equality of opportunity and fairness of outcome: to recognise that people have a breadth and diversity of potential; that their talents take many forms – not just analytical intelligence but skills in communication, language, and working with other people; that these talents can develop and be nurtured not just at school but over a lifetime; and that it is our duty – our unceasing duty – to ensure that throughout the life cycle there are – in education, employment, our culture and our economy and society – not only real opportunities for men and women to develop their potential but that there is, the core of Rowntree’s philosophy, a special duty to ensure no one is left behind.  And what has always been right on ethical grounds can now, today, be seen as good for the economy too.

    In our information-age economy, the most important resource of a firm or a country is not its raw materials, or a favourable geographical location, but the skills, and the potential of the whole workforce. Indeed what matters most in the new economy is not what a company has as assets on its balance sheet, its physical capital, but what assets it has in the talent in its workforce. Its human capital.

    In the industrial age, the denial of opportunity offended many people.  Today, in an economy where skills are the essential means of production, the denial of opportunity has become an unacceptable inefficiency and brake on prosperity.

    Full prosperity for a company or country can only be delivered — and Britain properly equipped for the future – if we get the best out of all people. And that cannot happen without opportunity that taps the widest pool of talent.  In the modern world therefore policies for the good economy and the good society go together.  So even if we could not persuade some of our fellow citizens to support action against poverty out of a concern for social justice, these same people should be driven to support action against poverty as a means to ensuring economic prosperity.

    And once we take this view that what matters on both ethical and economic grounds is opportunity to realise potential, we are challenged not only to break down all barriers of race, sex, class, and other discriminations but to actively promote changes that will deliver opportunities in practice.

    And our ambition to eradicate child poverty is the most tangible expression of the bigger moral and economic purpose I have described – to eliminate poverty so that we can ensure that every child has the chance to realise their potential.

    Child poverty

    Yet the return in the last three decades of the life cycle of poverty – indeed the great and unacceptable concentration of poverty amongst households with young children – is the greatest indictment of  our country in this generation and the greatest challenge of all.

    The facts are that in the two decades before 1997 the number of children growing up in workless households – households where no one had a job – rose to almost 20 per cent. One in every five children did not have a parent earning any income from work.

    The numbers of children in low income households more than doubled to over 4 million.

    And you must never forget that the UK – one of the richest countries of the industrial world – suffered worse levels of child poverty than nearly all other industrialised nations.

    Indeed, anyone reading reports on the condition of Britain will be shocked by one straightforward but disgraceful fact.

    When we came into Government one in every three babies born in Britain were being born into low income households. Born not into opportunity but into poverty.

    This is the ‘Condition of Britain’ question we had to confront one hundred years after the Joseph Rowntree Foundation was set up.

    And it is the ‘Condition of Britain’ question still with us fifty years after Beveridge and the creation of the welfare state.

    Not only was child poverty endemic by 1997 but social mobility had slowed – in some respects, gone into reverse.  And while more room existed at the top, a child from the lowest social class was a quarter as likely to make it to that place at the top as the child from the highest social class.

    But during these years when child poverty grew so too did our understanding of all that we had to do to tackle child poverty – and in particular just how crucial the first months and certainly the first years of a child’s life are in determining life chances.

    Indeed recent research suggests that much of children’s future prospects can be predicted within 24 months of them being born.  Leon Feinstein has shown how psychological and behavioural differences varying strongly by social class can be seen in children as young as 22 months and continue to have a systematic – and increasingly significant – effect on employment and earnings patterns right through to later life. Research undertaken in the US shows that pre-school experiences in language and literacy are strong predictors of later development in language and literacy.  And the Effective Provision of Pre School Education (EPPE) project in the UK found that children who participated in some sort of early learning made significantly more progress than those who didn’t. Abigail McKnight concludes that individuals who experience childhood poverty tend to suffer a penalty in labour market earnings in adult life, and that the size of this penalty has grown over time.

    For we now also know from your research that an infant who then grows up in a poor family is less likely to stay on at school, or even attend school regularly, less likely to get qualifications and go to college, more likely to be trapped in the worst job or no job at all, more likely to be trapped in a cycle of deprivation that is life long…less likely to reach his or her full potential, a young child’s chances crippled even before their life’s journey has barely begun.

    I believe that action to eradicate child poverty is the obligation this generation owes to the next.

    Children may not have votes – or the loudest voices…or at least their voices are not often heard in our politics – but our obligation is, if anything, greater because of this.

    And we also need to understand that these children are not just someone else’s children and someone else’s problem.  For if we do not find it within ourselves to pay attention to them as young children today, they may force us to pay attention to them as troubled adults tomorrow.

    So in 1999 determined to ensure that each child has the chance to realise his or her potential the government set an ambitious long term goal to halve child poverty by 2010 and eradicate it by 2020.

    Tackling child poverty is, for us, the critical first step in ensuring that each child has the chance to develop their potential to the full.

    And as a first step, we have sought to reduce the number of children in low income households by April 2005 at least a quarter.

    So far, measured by absolute low income, 2 million children have been lifted out of poverty; so far too, measured by relative low income, half a million children have been lifted out. And I think there is general agreement that having allocated resources to raise our child tax credits for the poorest families, we are on track to meet our target of reducing child poverty by a quarter by April next year.

    But we are not complacent in any way nor will we relax our efforts or allow them to be stalled.

    The next step – our goal of, by 2010, reducing child poverty by half – is even more challenging and how we reach this goal is the subject of the remaining observations I want to share with you.

    I can tell you today that in the spending review next week we will set out the detail of the target for 2010 – to halve the number of children in households in relative low income compared to 1998.

    As many of you have proposed to us, next Monday we will also set out an additional target to halve the numbers of children suffering from material deprivation – children lacking basic necessities the rest of us take for granted.  And because we know from your research that the quality of housing is critical in tackling poverty, we will – as part of this new material deprivation measure – be monitoring the quality of a child’s housing conditions.  Acting, I believe, in the spirit of Rowntree.

    And so let me point you to the policy changes that I believe are now necessary if we are to meet this anti poverty target, the means by which we seek to develop the potential of millions of British children.

    Financial support

    First, you would expect me as Chancellor to talk about hard cash and I am happy to do that.

    We can make progress towards halving child poverty because between 1997 and this year, for the family with one child, child benefit has already risen from £11.05 to £16.50 – a 25 per cent rise above inflation.

    But while universal child benefit is the foundation, it is the introduction of the child tax credit – now benefiting six million families and 10 million children, and led in Government by Dawn Primarolo – that allows us, while giving more to every child, to give most to those who need it most –— and is thus the front line of our attack on child poverty.

    So with the addition of the child tax credit the nine out of ten families who would in 1997 have received just £11  in child benefits now receives more than twice as much – £27 a week.

    For the poorest families tax credits go even further: with one child under 11, financial support which was £28 in 1997 is now £58.22 – a near doubling in real terms.  And a family with two children under 11 can now receive in children’s benefits over £100 a week.

    Indeed, progress is being made to meeting our child poverty target because the poorest 20 per cent of families have received not 20 per cent of all additional money but over 40 per cent.

    And, as a result, while all families with children are on average £1350 a year better off now than they were in 1997, the poorest 20 per cent of families are £3000 a year better off.

    For the rest of this Parliament we will continue to uprate the child element of the child tax credit in line with earnings —- and I can tell you today that in future Pre Budget Reports and Budgets we will assess progress towards our 2010 goal.

    As a Government we have also come to realise that if we are to meet our child poverty goals and ensure that there is equality in opportunity but also fairness in outcome, assets matter as well as income. So to each child born after September 2002 an initial contribution to their own individual child trust fund of  £250, with twice as much – £500 – for the poorest third of children; and then again a contribution at seven and then perhaps at later ages to enable all young people to have more of the choices that were once available only to some.

    With the new child trust fund worth twice as much for the poorest child; with the child tax credit worth four times as much for the poorest child; and with five times as much for the poorest infant – our anti-poverty commitment is based on a progressive principle that I believe that all decent minded people can and should support: more for every child, even more help for those who need it most and at the time they need it most, equality of opportunity and fairness of outcome applied in new times and with tax credits the principal new means.

    And as we develop our policies on financial support over the coming years, I recognise from your research and policy proposals that we have not done enough in a number of important ways and that there are major issues which now need to be addressed including:

    • First the costs faced by larger families and the consequences for benefits and tax credits
    • And second the housing costs faced by the low-paid, and this requires us also to evaluate the way housing benefit interacts with the tax and benefit system and the impact of the pilots for paying flat rate housing benefit.

    Employment

    So looking ahead we will continue to address the issue of children’s benefits but we have also always been clear about the importance of the contribution of family employment to meeting our child poverty targets.   And of course we must get the balance right between supporting mothers to stay at home, particularly in the early years, and creating opportunities for employment.

    Again it is because of tax credits – which create a new tax system whose rates start at 40 per cent at the top but go to as low as minus 200 per cent for the lowest income earners – that a lone parent with one child working 35 hours at the minimum wage is now £73 a week better off in work than on benefit.  And a couple with one child and one parent working 35 hours at the minimum wage is now around £38 a week better off in work than on benefit.

    Because the starting wage for the unemployed man or woman returning to work is typically only two thirds of the average hourly rate, the child and working tax credits have been designed not just to help people into work but to help people in work move up the jobs ladder and into higher incomes. Under the old system of family credit, 740,000 households faced marginal tax and benefit withdrawal rates of over 70 per cent, now the new credits have cut this figure by nearly two thirds, helping people keep more of every extra pound they earn.

    In total, 1.8 million more people are in jobs now than in 1997, with unemployment reduced to its lowest level in 30 years. But if we are to meet our child poverty targets we must advance further and faster to full employment in every community and we must make it a priority to reach the still large number of households with children — where no adult works.

    And of crucial importance in meeting our child poverty target for 2010 will be employment opportunity for lone parents.

    It is a striking fact that lone parent households contain a quarter of all children but account for nearly half of those in poverty.

    As a result one and a half million of the country’s poorest children are today living on benefit in lone parent families where no one has a job.

    Since 1997 250,000 more lone parents have gone into work.

    Because of the new deal the minimum wage, the working tax credit and other initiatives, the lone parent rate of employment in the UK has increased to 53 per cent.

    But in the US lone parent employment is more than 60 per cent, in Sweden above 70 per cent and in France in excess of 80 per cent.

    Our target is 70 per cent lone parent employment by 2010. And let me explain the significance of this ambition.

    If we meet our target to raise lone parent employment, this one success alone could reduce the number of British children living in poverty by around 300,000. And if we went even further to French levels we could reduce the number of children in poverty by a total of approaching half a million.

    Now research shows most lone parents would like to combine paid work with the vital job of being a parent. But they face real barriers to doing so.  And those who work with lone parents – and lone parents themselves – have rightly called on us to do more to help them get the skills they need for work and to ease the transition between income support and paid work.

    So while all lone parents are now invited in for work-focused interviews.  We are also piloting new lone parent ‘work discovery weeks’ – run by employers in London, Glasgow, Liverpool, Manchester, Leeds and Birmingham – that are providing introductory and preparatory courses for work in some of our best known retail stores, hotels and companies —– and backed up by help with childcare.

    Where local employers identify a demand for skills lone parents in these six cities also have access to free NVQ level 3 training – and funds to buy work clothes or equipment.

    And because we recognise that the time of transition from benefits to employment can be difficult, from October lone parents will benefit from a new job grant of £250 when they move into work and they will enjoy a four week extension of housing benefit.

    So what does the success of our recent measures mean in practise for tackling child poverty? It means that with the new help with housing benefit, lone parents on a typical rent of £50 a week and working part time will receive at least £217 a week for around 16 hours work a week.

    The effective hourly rate is not the minimum wage of £4.50 but £13.50 an hour – making them far better off working part time than not working at all.

    And so we have come to recognise that central to tackling child poverty – as well as to the importance of helping families balance work and family life – is the provision of adequate child care.  And while we have since 1997 created over a million more child care places, the greatest help for low income families has been the third element of tax credits that we have introduced — the tax credit for covering the costs of child care – up to £95 each week for families with one child in qualifying childcare and up to £140 for those with two or more children.

    When we started in 1997 it was claimed by just 47,000 families, it is now benefiting 320,000, with maximum help given to lone parents.

    And while we ensure that by 2008 nearly 2.5 million children a year will have access to good quality childcare, again for poor families the next stage in the extension of the child care tax credit is of greatest importance – from April 2005 extended to a wider range of eligible childcare including, in some cases, at home.   And the tax credit will be supported by a new incentive for employers — to give their employees up to £50 a week, free of income tax and national insurance, to help with childcare costs.

    Public services

    So tax credits have been and will continue to be the key to tackling child poverty. But as a government we also have a duty and role to play in encouraging the development of the potential of Britain’s children through the provision of high quality public services – and Bruce Katz has this morning shown why one of our priorities must be to drive up the performance of public services in our most deprived neighbourhoods and thus break long established cycles of deprivation.  And I do not underestimate the critical role that new investment in housing can play.

    Of all the services that contribute to the development of potential a good education – the subject of the government’s five year plan today – is clearly the most fundamental. So as I announced in the budget we are investing over 3 years an additional £8.5 billion in education; raising average spending per pupil from the £2500 a year we inherited to £5500 by 2008 —- and, as a sign of our commitment to tackling disadvantage, by even more in the 1400 schools that benefit from our extra support for leadership and excellence to combat deprivation.

    We have, indeed, a long way to go in ensuing for today’s poor children a decent start in life but it is important to record that the greatest improvement so far in reading, writing and maths has been in the primary schools of the poorest areas.  And I can tell you that the next stage is to help at an early stage the very pupils most in danger of falling behind — and with extra money for their books, and their classrooms equipment and staffing drive up their literacy and numeracy.

    I can also inform you that secondary schools with more than 35 per cent of their 14 year olds eligible for free meals are now making the biggest gains in maths and science results at key stage 3.  Indeed the number of secondary schools with less than 25 per cent of their pupils achieving 5 or more good GCSEs has fallen from over 600 in 1997 to 224.  And today’s five year plan sets out our next steps – with the very pupils most in need offered more personalised learning including new vocational options and greater access to IT.

    I can tell you also that in the spending review, there will be new, more challenging floor targets for the poorest areas. And as part of the review of the local formulae used to distribute schools funding – due to take place later this year – I would like to identify even more effective ways to target resources at tackling deprivation: measures to help children in the bottom income quintile catch up, particularly in primary school, and measures to enable schools to meet the higher costs of educating children from poorer backgrounds who may have lower levels of early educational attainment and who may have far less parental support.

    Tragically Britain has, for decades, had one of the poorest staying on rates of the industrialised world. In Britain more young people leave school early, more leave without qualifications and more never reappear in the world of education.

    So again to tackle both poverty and lack of opportunity – and to seek to tackle perhaps an even greater challenge, the poverty of aspiration amongst children and young people and their parents – we have reformed the careers service, introduced summer schools, encouraged better links between schools and universities and colleges.  And we have piloted an education maintenance allowance:  up to £1500 a year on top of child benefit and the child tax credit for those young people who need financial help to stay on in education and get the qualifications they need. And so successful has the allowance been in raising staying on rates that from September this year it will be available nation wide.   And as it goes nationwide be made available not just for school and further education courses but for training too – once again helping all young people, but doing more for those who need help most so that no child is left behind.

    Services for under fives

    I said at the outset that while we are committed to social security from the cradle to the grave, too many children have already lost out within months of being born – condemned to poverty because not enough has been done to help them from the cradle to the nursery school.

    Indeed for fifty years while there was undoubtedly much innovation in the voluntary and charitable sector, welfare state support for the country’s youngest children consisted of maternity services, vaccinations and a requirement to appear at school at age 5.

    Yet while the provision remained inadequate the evidence grew that the first four years of a child’s life are critical to their personal development; that children who went to nursery or other early education before they attended school were likely to have significantly improved social, emotional and cognitive development; that the longer children attend pre-school – and the higher the quality of the service – the greater the positive influence; and that such intervention was particularly beneficial for the poorest children.

    And so it is clear that a strategy of counteracting disadvantage must begin right from the start of a child’s life and that the earliest years – once the lowest priority — are now rightly becoming among the highest priority: not just the biggest gap in provision and next frontier for us to cross, but one of the single most important investments the welfare state can make.

    The sure start maternity grant – once just £100 – has been raised to £500, a five fold rise in five years.

    Reversing a long standing policy that more child benefits went to older rather than younger children, we doubled the child tax credit for the first year of a child’s life.

    To help parents stay at home with their children, maternity leave and pay has been substantially extended and paternity pay now exists for the first time.

    And earlier than planned nursery education is now available for all 3 year olds as well as all four year olds.

    Now in the past to identify a problem – the need to expand provision for infants from birth to three   – would probably have led simply to the creation of a new state service.  But I believe that what today is happening in the area of under five provision shows how what we do – in the spirit of Rowntree – is based upon evidence; how the best approach is multi-dimensional – across the services – and the range of provision mixed; and how, instead of a narrow focus on what central government can do, voluntary and community organisations, and parents, and government, local and national, through not just one service but a range of services – child health services, social services, and early learning –  are now all part of the solution.

    I often say that sure start – led by Charles Clarke, David Blunkett and Margaret Hodge – is today one of the best kept secrets of government, but it is also one of the unsung successes of the voluntary and community sector.

    And there are now over 500 sure start or children’s centres providing services for 400,000 children across the country, including a third of all children under four living in poverty.  And you have only to visit local sure start projects – as I did in Bristol a few weeks ago and then in Birmingham last week – to capture a very real sense of the difference they are making: and already evidence from individual projects in some of Britain’s most deprived areas shows that sure start is having a notable effect on children’s language development and social skills, and on the interaction of parents and their children.

    What is then exciting about sure start and the approach it represents ?

    I believe that what is exciting is what Rowntree himself would have approved of – and what Rowntree Foundation research has pointed towards.

    First, a co-ordinated approach to services for families with young children, tackling the multi-dimensional causes of poverty – physical, intellectual, emotional and social – by adopting an integrated approach with childcare, early education and play, health services and family support at the core of sure start.

    It reflects a growing recognition that housing, health, transport social services, youth and many other services are vital in tackling child poverty and developing young people’s potential.  And the new public service agreements we will be publishing alongside our commitment to new investment for these services will reflect this.

    Second, the emphasis within this approach on health and inequality highlighted by today’s report of the health care commission.  And later this year there will be a new Public Health White Paper – refocusing our attention on preventive health – which will emphasise once more the importance of tackling the unacceptable health inequalities – including infant life chances – which distort our country.

    Third, sure start is emphasising the central role of parents in tackling child poverty – and that is why parents are enlisted in the very running of the sure start projects.

    We must never forget that it is parents who bring children up, not governments, and our emphasis is on the opportunities now available to parents and the responsibilities they must discharge.

    So we are not only increasing the financial support available to parents – and exploring options for future further increases in maternity and paternity pay – but making available wider support for parents, including expanding parenting classes and providing access to practical parenting advice in a wider range of locations.

    Fourth, the central role of voluntary community and charitable organisations from mothers and toddlers groups to the playgroup and child care movement to vast and impressive range of specialist organisations throughout our country. It is a humble recognition of the limits of government – that child poverty cannot be removed by the action of government alone but by government, working with parents, voluntary charitable and community organisations – and a celebration of the vital role of the voluntary and community sector in every city and town of our country. And let us not forget that alongside traditional voluntary organisations – like the churches and uniformed organisations for young people – that have been declining in numbers, there has been a mushrooming of young mothers groups, playgroups, and groups and clubs associated with children locally and nationally.

    And let us be clear about the radicalism of our approach.   For sure start also enacts an important new principle into action – that services for the under-fives not only involve voluntary and charitable action at a local level – even more so than we have done in the past – but either in partnership or in sole control, the very running of these local groups can be and is being passed to community control.

    And it is a recognition that, we must all accept our responsibilities as parents, neighbours, citizens and community leaders, in the battle against child poverty.

    And of course there is a fifth innovation:  the far greater emphasis on early learning – so early that it can start with the local school contacting the mother not in the months before the child’s fifth birthday but just a few weeks after the child is born – backed up by innovations like Bookstart offering children the books they might not otherwise have, to start in their first months to learn to read.

    And we can see now how combined with the improved income support for the under fives that I have described, the additional cash resources for early learning and the support for the specialist groups – many represented here – that deal with disability, special needs and other challenges, a new more comprehensive approach not just to tackling child poverty but to developing the potential of every child is taking shape.

    And as we approach the spending review next week and advance to the pre budget report, I can tell you that what I have described this morning can only be the start of what we have yet to do.

    Building on sure start, the next stage is to fund the creation of new children’s centres across the country – again providing a combination of good quality childcare, early years education, family support and health services.  By 2006 650,000 children will be covered by sure start or children’s centres. And there will be new funding – despite our other representations – to ensure 1700 children’s centres by 2008 – one in each of the 20 per cent most deprived wards in England, as we advance towards our goal of a children’s centre for every community.

    But sure start – and related services – point the way for a new agenda for services for young children:

    • Greater encouragement for local initiatives and community action in the war against child poverty;
    • Offering government money to back non-government initiatives to tackle disadvantage;
    • Partnership with both the biggest voluntary and community organisations and the smallest;
    • The emphasis on prevention not simply coping with failure;
    • Greater parental involvement in the running of services.

    And anyone who like me has attended a sure start conference – and seen the dynamism, energy and determination of parents, volunteers and carers in action – can begin to understand the transformative power that organisations from the playgroup movement to the child care campaigns can have. And I look forward to the little platoons in our communities becoming veritable armies demanding we do more.

    So new finance, like tax credits

    New initiatives, like the new deal for lone parents

    New dimensions, like support for child care

    New services, like sure start

    New approaches, whole services  managed by the voluntary sector

    New directions, engaging parents in the running of programmes.

    All weapons in the war against child poverty

    All evidence that parents, voluntary organisations and government can acting together make a real difference

    All evidence also that informed by knowledge, working with the best of caring organisations, public action can transform young lives.

    Go to a sure start programme, as I did a few days ago – and see the bright new investments that are starting to change the face of some of the most deprived areas of our country.

    Listen to a mother, once feeling trapped in her home, telling you how sure start has introduced her to other mothers with similar stories to tell.

    Hear the views of children of lone parents – telling of their pride that their mother now has a job.

    And hear the responses of parents on the child and working tax credits – describing how what they can spend on their children has been raised by £50 a week.

    And so I tell you. After seven years of government I am not less idealistic but more idealistic about what we can achieve working together.

    Because we now have evidence of what can be done by sure start in some areas of the country, we want to apply the lessons to all parts of the country. And because we have evidence of the good that is done for some children, then we want to extend these opportunities to all children.

    And what started, for us, seven years ago as an article of faith about what might be achieved is now a conviction based on clear evidence about what can and must be done.

    Because what has been done shows us what more can be done, because the evidence of small successes shows what even larger successes are possible, it must make us more even more ambitious to do more.

    So my experience of Government has not diminished my desire to tackle child poverty but made me more determined to do more.

    For what has happened so far does not begin to speak to the limits of our aspirations for developing the potential of Britain’s children, but challenges us to learn from the changes now being made and strive in future years to do even more.

    So on Monday I will be able to announce the next stage in our policies for tackling child poverty and for helping the development of the potential of every child – and I believe as a country we are ready to do more to tackle old injustices, meet new needs and solve new challenges.

    But what we can achieve depends upon the growth of a nationwide sentiment of opinion – indeed, a shared and concerted demand across communities, across social classes, across parties, across all decent minded people – that the eradication of child poverty is a cause that demands the priority, the resources, and the national attention it deserves.

    It is not usual for government to welcome the growth of pressure groups that will lobby, demonstrate, embarrass, expose and then push them to action. But I welcome the new alliance for children — the broad coalition of community organisations, voluntary and charitable sector determined to push further to end child poverty.

    For the emerging evidence – and the growth in a nationwide public opinion – emboldens me to believe it can indeed be this generation of campaigners, charity workers, child carers, sure start organisers, working together, that will right the social wrongs that impelled Joseph Rowntree to action and ensure every child has a fair start in life.

    So let us continue to follow the lead given by the pioneers who brought the Rowntree Foundation into being.

    And inspired by a generation of reformers like Rowntree who had a vision; driven forward – as the Rowntree Foundation has always been – by the evidence of what is happening around us; never loosing sight of the vision that inspired a whole generation; our eyes fixed firmly on the goal that if every child has the best start in life we can build a better Britain.

  • Gordon Brown – 2004 Speech at the CBI Annual Conference

    Gordon Brown – 2004 Speech at the CBI Annual Conference

    The speech made by Gordon Brown, the then Chancellor of the Exchequer, in Birmingham on 9 November 2004.

    In saying what a pleasure it is to be invited at the first conference presided over by your new President – John Sunderland – and here on the same day as my friend the Finance Minister of France Nicolas Sarkozy, let me first of all thank you for ensuring that in a harsher, more competitive and more uncertain world – which has not been easy for any business in any continent anywhere – Britain, thanks to your efforts and those of your companies, has weathered the storm of the recent world downturn. And the whole country recognises and thanks you – the business leaders of our country – for your hard work, your resilience and your courage to change.

    And I recognise that having come through, in the last four years, an IT collapse; an American, Japanese and German downturn; the stalling of world trade – itself stalling vital investment decisions you wanted to make – every company, every country, now finds that instead of the much hoped for calm, all of you are having to cope with the doubling of oil prices; rising world commodity prices; uncertainty in the Middle East; large current account imbalances between Europe, Asia and America; and the changing values of dollar, euro and pound and thus uncertainties about the strength and durability of the world recovery.

    And perhaps even more challenging, every company and every country is, at the same time, having to face up to far reaching and fundamental global changes in technology and trading patterns – including the rise of Asia. Changes that are lasting and profound.

    Within twenty years half the world’s manufactured exports could come from developing countries.

    Already China is exporting more than France, Italy and Britain.

    Asia is exporting almost as much as the euro area.

    Within a decade 5 million US and European jobs could be outsourced.

    And all the time China and India are upgrading their science and skills with India and China today producing 125,000 computer science graduates a year and Britain only 5,000.

    Now at no point in our past history could Britain ever afford the old short-termism and the old complacency. At no time could Britain afford to duck or postpone fundamental long term choices about our future. Indeed at the root of our national economic decline in the last century was a British failure to face up to difficult long term decisions.

    But ever more so in this more competitive global era, to fail to confront, to complacently side step, long term decisions would mean Britain left behind. So in an era where nations will rise and fall at speed – and where no nation, however prosperous today, can take tomorrow’s prosperity for granted – Britain cannot afford ever again to resort to the old short-termism, whether pre election short-termism or any other form of short-termism.

    And to those who want to postpone long term decisions and tell us that there should be no change without security, we all know the answer: there can be no security without change.

    My message today is that there are important long term economic choices about our economic destiny and about Britain’s priorities which we need to make together and which cannot be resolved by resorting to short term initiatives, or even decisions that are just for one Parliament. Long term choices and decisions about our economic future as a nation which – because these decisions need to be made, acted upon and followed through on a sustained basis – require a consistency of purpose and direction in the British national interest that goes beyond one year or even one Parliament and involves seeking agreement and shared purpose across all sections of British society.

    And so the choices we will address in our Pre Budget Report are:

    – will we relapse as a country, drifting back to the era of fiscal irresponsibility and short termism or will we have the strength to continue to entrench monetary and fiscal stability for the long term?

    – will we have the strength not just to talk about enterprise but to provide the incentives, the rewards for risk and agree the changes in education necessary to make Britain’s entrepreneurial culture match the enterprise of the USA?

    – will we have the strength to resist protectionism and take the long term decisions to break down trade barriers around the world and build the best trading relationships with Europe and also with America and with China, India and Asia?

    – and on both the two drivers of modern economic success – innovation and skills – will we face globalisation by systematically doing what every advanced industrial nation must do: not only investing to upgrade both science and skills but addressing all the barriers – tackling the old inflexibilities, the old vested interests – that stand in the way of Britain being the best place to locate for skills and for R and D and make Britain the best country to grow up in, to start a business, to build a successful life?

    And underlying these challenges is an even more fundamental decision: to meet and master these challenges of the global marketplace my mission is to build a shared national economic purpose, a patriotic vision – shared by the British people – of Britain’s economic destiny as a nation of aspiration and ambition.

    And let us be clear about the economic cost of not building this shared purpose. There’s no doubt that America faces the challenges of globalisation with a strong sense of itself as a country of liberty, enterprise and opportunity for all. And when Mr Sarkozy speaks today he will show that France has a very strong sense of national destiny as it faces the decades ahead. So too does China and every Asian economy I visit.

    And I believe that working together, we can here in Britain forge a shared British economic purpose that, embracing all sections and regions and nations of Britain, can give us, the British people, the long term direction and determination to make the difficult choices about priorities in a global age, and summon our great country to greater achievements in the future.

    Stability

    Let me give an example of how a shared national purpose can be built.

    When we made the Bank of England independent, and built a new monetary and fiscal framework which required us to freeze public expenditure for two years and radically cut our national debt, I remember people saying we would find it difficult to get trade unionists, workforces and managers in all the regions, as well as the other political parties, to accept the toughness of our monetary and fiscal rules and the consequences of Bank of England independence for, for example, wage expectations. But over the last seven years we have shown that with economic management based on clear objectives, proper procedures and on transparency and accountability, you do build trust and a shared purpose that gives business confidence to invest and families confidence to plan ahead.

    And the question now is: can we build a shared economic purpose not just around stability for a few years but around entrenching long term stability?

    I think most businesses would acknowledge – as Digby Jones and John Sunderland have done – that because of a proactive monetary policy, Britain not only acted quickly – with nine interest rates cuts – to avert recession but we have also acted pre-emptively on the upturn – with five interest rate rises.

    In any other decade a doubling of oil prices would have led to expectations about higher inflation, and then higher wage demands. But today the British people know that our inflation target and stability will be achieved.

    The Government will respond to the long term savings and investments issues raised by Adair Turner whose Pensions Commission reports in the next year. But on fiscal policy generally I can tell you that we will learn from, and not repeat, the mistakes of the European Growth and Stability Pact – with its focus on an annual, not long term, perspective and its concern for short term deficits not long term debt.

    Remember that in 1997 even at a time of growth we froze spending so that we could rebuild our public finances for the long term on the basis of low and sustainable levels of debt.

    In 1999 at the time of the spectrum sales which raised £22 billion we resisted the demand even from some in the business community to spend that £22 billion as if it were a windfall and instead we further cut the size of our national debt.

    At the time of the world downturn in 2001 we ensured that fiscal policy supported monetary policy.

    And I hope you will agree that – looking back on the British system of fiscal discipline over seven years – we have, at each point in the economic cycle, taken the right long term decisions for business and the economy, which has helped our country ensure that unlike America, Germany, Japan and the euro area growth was maintained free of recession in every quarter.

    And in the next few years it is my determination we again take the right long term decisions at each point in this and the next cycle.

    So as we look forward I can also tell you that as we slow the rate of growth of public spending we will, while financing all the nation’s key investment priorities – including education, health, transport and law and order – continue to meet all our fiscal rules in this cycle and in the next.

    And today in 2004 I can tell you – as I told my own Political Party Conference – that I will resist demands from wherever they come, such as on linking pensions to earnings where this would put at risk the fiscal position today and in the long term. Such short-termism is not the best way forward.

    Today almost every one of our major competitors is grappling with high fiscal deficits and fast rising levels of debt. But at every point we have been able to meet our fiscal rules and as long as I am Chancellor we will meet all our fiscal rules – with stability yesterday, stability today, stability tomorrow.

    Enterprise

    The shared national economic direction we have been building is founded on stability, but must be driven forward by building the same national purpose around a Britain which values and celebrates our enterprise, creativity, dynamism and entrepreneurial flair.

    There are 300,000 more businesses since 1997 thanks to you and your colleagues. But let us be honest: today our rate of business creation is still half that of the USA and if we had the US rate we would have 1.8 million more businesses in Britain. The long term choice for Britain is whether we are serious about the incentives and rewards for risk, and about the changes in the school curriculum and in education generally necessary to create a long term revolution in attitudes to enterprise and wealth creation.

    Let me give you one example of a policy change by our party that shows how we are already going beyond the old divisions and helping to forge a shared national consensus on enterprise culture – capital gains tax.

    Although not quite as public a symbol as Bank of England independence – but dramatic in terms of Labour’s history none the less – from its first year a Labour Government even with other priorities including the NHS cut capital gains tax – now down from 40 pence to 10 pence for long term business assets – because rewarding enterprise is, for us, central to a renewed British national economic purpose.

    That is also why a Labour Government cut corporation tax from 33 pence to 30 pence and small business tax from 23 pence to 19 pence; and why in the last budget we announced the end of the last corporatist subsidies, the permanent on going industrial subsidies in coal, steel and shipbuilding; are resolved to sell off all remaining government shareholdings in private utilities; and in Europe are demanding a wholesale reform of wasteful state aids that are distorting competition.

    But the renewed national economic purpose is not just getting rid of the old but building day-by-day an enthusiasm for enterprise in every region of the country. So in what areas, building on stability, can the Government do more to break down the barriers to enterprise?

    Planning: we will help business by making planning quicker, more flexible and more responsive to the long term needs of the economy generally.

    Tax: we will continue to look with you at the business tax regime so that we persuade people that it is in Britain’s interests to make and keep the UK as the most competitive place for international business.

    And on regulation, let us accept this is a problem raised in every industrial country – where there is a tension as you know between the flexibility you need and the standards the public request. And I tell you that it is in the national interest that we continue to resist inflexible barriers being added into European directives like the agency workers directive and the working time directive.

    I can also tell you that in the Pre Budget Report we will do more to reduce regulations in Britain in the area of inspection, audit and enforcement regimes and I can also say we have agreed with the Netherlands, Luxembourg, Ireland to put regulatory reform at the heart of our EU Presidencies through to 2005, putting every costly and wasteful EU regulation to a competitiveness test.

    And in budget after budget I want the nation – and politicians on all sides, trades unionists and managers – to face up to the hard choices – whether it be in the tax system or in breaking down old barriers – to do more to encourage the risk takers, those with ambition, to turn their ideas into reality and make the most of their talents.

    In the past it has been assumed you could have enterprise but at the cost of fairness – or fairness but at cost of enterprise. So in Britain for decades parties that emphasised enterprise at the cost of fairness vied with parties that emphasised fairness at the cost of enterprise. But today I believe, as I told the Labour Party Conference, we can forge a new consensus – government and business together – that enterprise open to all is the right way forward for communities and our country as a whole.

    In particular, we need to do more to give young people the confidence and support they need to consider a career in business.

    So in future not just a few but all pupils before they leave school will enjoy not just work experience but enterprise education too.

    We are setting up a National Council for Graduate Entrepreneurs.

    With the visit of US Treasury Secretary John Snow next week we plan to form a new transatlantic partnership for encouraging enterprise with the US administration.

    On 4 February next year the Treasury will host a conference of business leaders from across the world, and led by Alan Greenspan, who will address it to discuss how faced with rising economies like China and India Britain can become more entrepreneurial.
    And driving forward national awareness of enterprise opportunities for all, the first ever national Enterprise Week next week will encourage, inspire and excite young people about enterprise – and our annual city of enterprise competition will encourage and reward those with ideas who start up their own businesses – as we build a new shared economic purpose in Britain that starts in our schools and that extends even to communities with today the highest unemployment and the lowest rates of business creation, that enterprise open to all – a deeper wider entrepreneurial culture – is the way forward for Britain.

    Science

    In a global restructuring that focuses advanced industrial nations away from low skill, low tech products and processes to the technology driven and high value added, Britain will not only have to be enterprising but will only have a competitive edge if we develop the most technologically intensive and science based industries and services.

    Yes: with 1 per cent of the world’s population we have over 11 per cent of the world’s most cited scientific papers and the industries growing fastest are those that are also investing heavily in R&D. But for decades – as a share of GDP – science investment has been lagging behind our major competitors, now even behind Korea and Singapore.

    And the long term choice we cannot duck is whether we have the strength to take all the necessary steps – financial, regulatory and cultural – to make Britain, home of scientific discovery in the industrial revolution, the country where scientific invention is fully valued and celebrated and, as we break with the short-termism of the past, the best place in the world for scientific enquiry and for R&D.

    So I propose we build on the public private partnership between government and business that created the ten year framework for the development of science and the extra £2.5 billion pounds investment that will further develop university labs and equipment and – now even more a priority – invest in graduate and post graduate engineering, science and technological education and research. So with the ten year framework our starting point, we are ready to work with you to build on our successful research and development tax credit to create the best incentives and make Britain the best place for R&D.

    But we need to do more. By showing we have properly balanced the need for scientific advance with ending unnecessary suffering we must protect legitimate science on potentially life saving research from being under constant attack – and thus build a British consensus that, building on our great scientific traditions celebrates the responsible development of science and rewards scientists and inventors for their creativity and their pivotal contribution to the next stage of British economic success.

    Skills and Labour Market

    Even bigger choices lie ahead of us in ensuring the proper response to globalisation with both the flexibility companies need and the skills individuals require.

    Yes, today 2 million more are in jobs. But the unemployment and worklessness rate among the unskilled is not 5, 10 or 15 per cent. 50 per cent are not in work. Each year India and China produce 4 million graduates compared with just over 250,000 in Britain. And if we are to succeed in a world where offshoring can be an opportunity, then the acquisition of skills by all – our mission to make the British people the best educated, most skilled best trained country in the world – must become the shared desire and determination of the whole British people from parents and teachers to management and trades unions.

    At root the issue raised by global change is whether, to achieve this aim, we have the vision and resolve to construct a new long term partnership between employer, employee and government in which in return for the flexibility you as employers need, we ensure that investment in education that individuals and the country require to prosper.

    I propose that in the next year we work together in a long term plan to make Britain the best educated, trained and skilled workforce prepared for all challenges ahead.

    The Government ready to move resources from paying for unemployment to investing more to achieve higher standards in our schools, colleges and universities, and – as Charles Clarke is keen to discuss with you following the Tomlinson Report – to improve the quality of apprenticeships and the education of 14 to 19 year olds.

    Employees demonstrating greater flexibility – with the minimum wage and tax credits already underpinning earnings, with our advances in childcare underpinning family life, and with the Employer Training Pilots giving greater help in acquiring skills.

    And, alongside this flexibility, small medium and large employers prepared to invest in skills training as, together, we build a progressive national consensus around an agenda which shows that flexibility and fairness advance together – neither the old American or the old European way but a modern British way to high skills for the global age.

    Trade and internationalism

    And because our economic success depends upon the openness and vitality of our trading relationships, the long term question is whether Britain can both resolve the European question for this generation and whether we can use our advantages in – if Mr Sarkozy will excuse me – the English language, our belief in free trade and openness to the world and our historic global reach to make us a bigger global player in every part of the world.

    Today only 1 per cent of our exports go to China and only 1 per cent to India and so it is because we recognise both the urgency and the benefits of better trading relationships with China and India that:

    – we are not only pressing for a conclusion to the WTO talks but examining UK Trade and Investment’s priorities for the long term;

    – the UK Financial Dialogue with China will be held in December this year and will be extended to India next year;

    – Britain is promoting a year of British science in China, launched by Lord Sainsbury in January;

    – and we are implementing the new science and engineering graduates scheme extending work permits to new graduates not least from China and India.

    I am pleased Mr Sarkozy is with us today – and I have valued working with him across the political divide.

    It allows me to emphasise as someone who is pro Europe and pro reform that Britain benefits from being part of the European Union, the biggest and most successful single market in the world.

    And Britain will benefit from a Europe that reforms.

    And instead of a Britain still characterised by doubts and hesitations about our role in the world, grappling uncertainly with issues of integration in a European trade bloc.

    Instead of a Britain seeing the battle as Britain versus Europe, not Britain part of Europe.

    Instead of thinking the European choice is between non engagement and total absorption – a Britain failing to see we can lead the next stage of Europe’s development.

    I believe we can build a pro European consensus in Britain.

    Why do I say this? Global economic change demands Europe moves from being a Trade Bloc Europe to being a Global Europe – outward looking, reforming and open, with a programme of liberalisation, a new employment dimension, the opening up of trade and commerce not least for the USA, and a modern monetary and fiscal regime.

    And I believe that we have already begun to show – in the way we have successfully resisted the savings tax and tax harmonisation – that the best contribution pro-Europeans committed to Britain leading in Europe make to the cause of Europe is by ensuring that in Europe we face up to rather than duck these difficult decisions about economic reform, an approach that is gaining support from other European countries.

    Our aim is a Europe that instead of being a trade bloc looking inwards on itself, looks outwards, engages with the rest of the world, rejects semi federalist ambitions and reforms and liberalises to meet the global economic challenge. And it is around this pro-reform, pro-global approach – that is clearly in the British interest – that perhaps the first truly national consensus on Europe can develop. Britain feeling confident rather than hesitant about its important role in Europe’s development.

    Conclusion

    So here are the elements of a shared national economic purpose, a consensus for progress, to which I believe the whole country could subscribe.

    Building on our historic qualities – openness to the world, our scientific traditions, our world class universities.

    A Britain united as it takes the long term decisions for stability.
    A Britain where the whole country is committed to enterprise and flexibility.
    A Britain that invests in science and infrastructure, and in education and skills, and believes in its future as a scientific and creative nation.
    A Britain that looks outward to Europe and the world.
    A Britain that leads Europe to an open, flexible and global future.

    And if we can build a British progressive consensus around these long term economic decisions, then globalisation is indeed made for Britain and British prosperity. And we, Britain, can – equipped for the future – be, just as Britain triumphed in the industrial revolution, one of the global economy’s greatest success stories and look forward to a century of British achievement.

  • Gordon Brown – 2004 Speech at the Enterprising Britain Policy Summit

    Gordon Brown – 2004 Speech at the Enterprising Britain Policy Summit

    The speech made by Gordon Brown, the then Chancellor of the Exchequer, in London on 15 November 2004.

    Let me say first of all that when a year ago we discussed creating Britain’s first ever national Enterprise Week, no one could have foreseen its scale:

    • the engagement of 427 organisations and in every region and nation of the UK;
    • the 1086 events celebrating enterprise in schools, colleges, universities, workshops, local community centres, even football clubs;
    • and the range of the innovative ventures that are flourishing from Inner City 100, young entrepreneur of the year competitions, mentoring classes, networking events, enterprise roadshows and workshops with established entrepreneurs.

    And so at this the first event marking the start of Enterprise Week let me begin by thanking all of you – businessmen and women, trade unionists, teachers, think tanks, voluntary organisations, regional development agencies, policymakers from central and local government – for your own contribution to national Enterprise Week. That an idea that started with only a few people and little financial support should become in such a short time such a big campaign involving thousands across the country is itself a tribute to the spirit of enterprise in this country.

    Your successes, your achievements and your enthusiasm for this campaign – which I share – clearly show that if young people are given the chance they will respond and seek to turn their ideas into reality.

    And in particular I want to acknowledge the tireless work done by Kevin Steele, George Cox and all the individual members of Enterprise Insight – including the British Chambers of Commerce, CBI, Institute of Directors and Federation of Small Business – who have come together for this week and who have created not just an organisation but a movement that I think will go from strength to strength in years to come.

    Our starting point is the importance of enterprise to the future of our country.  For my mission for Britain – indeed the key to our future economic success and social cohesion – is a country where enterprise is truly open to all, a nation of aspiration and ambition united in encouraging and celebrating innovation and enterprise.

    More than a century and a half ago John Stuart Mill one of our greatest philosophers defined enterprise not narrowly in terms of finance or commerce but as widely as the theme of Enterprise Week – ‘Make your Mark’ – does.

    He defined enterprise – and I quote – as:

    ‘The desire to keep moving…to be trying and accomplishing new things for our own benefit or that of others.’

    He spoke of:

    ‘The striving go ahead character of England and the United States…[as the] foundation of the best hopes for the general improvement of mankind…’

    And this is exactly what this campaign is based upon.

    We know from Enterprise Insight’s research that:

    • young people want to have the chance to develop potential;
    • young people want to be creative;
    • young people want to do something real and tangible;
    • young people want to make their own decisions.

    Indeed twice as many people under 35 are thinking of starting a business as those over 35.  But often they don’t have the confidence or the help and support they need to turn their ideas into reality.

    We also know from Enterprise Insight’s research that networks matter.

    That the best inspiration is to see other people who have made ideas happen.

    It’s easier for young people who know other people who’ve started a business to do the same.

    It’s harder for those who don’t have people they can turn to for support and advice.

    And that’s why the involvement of more established business men and women helping to enthuse young people is so important.

    Some of you here today are already mentoring young people thinking of starting up a business:

    • convincing them that they really can do it;
    • advising as they take their ideas forward;
    • supporting them through setbacks;
    • giving honest feedback;
    • building confidence;
    • providing expert practical support.

    And let me thank you – all the businesses here and all the mentors – for all you do.

    So what is our role as a Government in helping young people develop the confidence to believe that although starting up and running a business is not always easy, they can do it; in encouraging the belief that they can – in the words of your campaign – ‘Make their Mark’?

    First, new entrepreneurs need a good economic environment and so the British enterprise renaissance must be built upon our platform of economic stability. And my promise, now and in the future, is that Government will not play politics with inflation or interest rates.

    Second, we can do more to put in place the right incentives to support and reward enterprise. In our first years in government, even with other priorities including the NHS, we cut capital gains tax – now down from 40 pence to 10 pence for long term business assets – and we have cut rates of corporation tax and small business tax. In the coming Pre Budget Report we will make it our business to examine and remove the tax and regulatory barriers to enterprise – such as those that hold back university spin-off companies from turning research excellence into business success.

    Access to funds is crucial and at every point I want to be on the side of businesses as they look for start up finance, look to set up their first payroll, look to make investments and look to get equity into their company – and in each area we are looking at the incentives we can offer.

    And we are ready to do more.

    To prove that in high unemployment areas enterprise is the best solution to poverty we are creating 2,000 new enterprise areas with new tax incentives.  And to encourage an entrepreneurial approach by local authorities, we are rewarding them for new businesses they attract or help create.

    And showing we are serious about breaking down regulatory and tax barriers to enterprise extends to what we argue for in Europe. This morning, Alan Wood, the Chief Executive of Siemens, will report – and tomorrow I will raise this in Brussels, standing up for Britain and British interests – how fair competition in the awarding of government contracts is being held back in many EU Member States, penalising enterprising and innovative companies.  In the interests of competition and enterprise, Europe must change and I will also push for urgent reform of the expensive state aids regime.

    In Britain we have much to do.

    As a whole business creation is half that of the USA.

    And in some areas the rate of business creation is one tenth that of the USA.

    Yet in the new global economy wealth creation and job creation through new business creation is the way forward.

    We know already that the greatest number of future jobs will not come from a small number of large businesses but a larger number of small businesses.

    And so from today and throughout the coming decade our objective must be American levels of business creation.

    And the key to the enterprise renaissance is a cultural change in Britain that starts in the schools and stretches right through our communities from classroom to boardroom – a cultural change that is more than the sum of any one set of initiatives.

    In recent decades it was not businesses, but benefits offices, that mushroomed in high unemployment communities.  Even in the enterprise revival of the 1980s it was too often seen as something for the elite – too many men and women of ideas, drive and flair too easily discouraged by a stop-go economy and a fear of failure. Many concluded that the Britain that pioneered the industrial revolution and taught American about commerce had lost its taste and drive for enterprise.

    People used to argue that in Britain you could have enterprise but at the cost of fairness – or fairness but at cost of enterprise. So for decades political parties that emphasised enterprise at the cost of fairness vied with parties that emphasised fairness at the cost of enterprise.  But I have told the Labour Party we must break with this unenterprising past.

    I have said to the Labour Party we must forever renounce these old stereotypes and that our duty is to forge a new national economic purpose: that enterprise open to all – and breaking down the barriers to wealth creation – is the right way forward for communities and our country as a whole.

    What does that mean?

    It means breaking down the barriers to opportunity for young people, for women, for ethnic minorities, for all who have found it difficult in the past to starting a business.

    And it means changing our attitudes to risk. It is often said that the transatlantic divide in entrepreneurial attitudes is that Europe seeks economic security, while America was built – as Alan Greenspan suggests – on people willing to take greater risks. With reformed insolvency laws Britain is turning its back on the culture that frowned upon those courageous enough to take risks and, instead, is encouraging those who, having failed at first, try again.

    Because we know the starting point is the school I am pleased to see so many teachers with us today.

    When I was young, my fellow school and university students shied away from commerce in favour of the professions.

    Now – with Charles Clarke’s support for enterprise in our education system – it is changing.

    More than 1500 schools are now offering their pupils enterprise education.

    Many schools are running enterprise competitions where young people set up their businesses.

    Others are offering pupils the chance to do work experience in successful local companies or be mentored by local businessmen or women. And one thousand enterprise advisers are already working in schools in our most deprived areas.

    What’s being achieved is impressive but it is not enough.

    We cannot have a deep and wide entrepreneurial culture if just half of schools offer their pupils enterprise education.

    We cannot be an enterprising nation if less than 1 per cent of college or university students are engaged in entrepreneurial activity.

    That’s why, from next year, the Government has provided the resources so that each school will be able to offer every pupil not just work experience but 5 days of enterprise education too.  And I want to see every school – and then every college and every university – twinned with a local company who becomes their ‘business champion’, helping to forge a stronger enterprise culture amongst the students.

    British universities, once slow to respond, are now fixed on working with businesses, expanding university spin offs, licensing technologies and teaching students about enterprise.  I can tell you that funds are now available for the new National Council for Graduate Entrepreneurship to sponsor tailored training and support through their ‘Flying Start’ programme for the first 150 student entrepreneurs across the country.  Working with the Kauffman Foundation, the Council will also hold an international conference on how we can do more to put enterprise at the centre of the university curriculum.

    And when the US Treasury Secretary John Snow visits Britain tomorrow we will agree a new transatlantic enterprise partnership so that through exchanges and the sharing of experience between our two countries we can build a stronger enterprise culture, especially in our schools and universities.

    But we must do more.

    Take opportunities for women – denied the chance to make the most of their business potential for too long.

    It is because less than 15 per cent of businesses in the UK are owned by women, compared to 30 per cent in the US, that Patricia Hewitt – who I know is speaking to you later today – and I announced last month a new drive to encourage the next generation of women entrepreneurs – including appointing a new Women’s Enterprise Panel to champion female entrepreneurship.

    So there is much to do for both men and women.

    I’ve already emphasised the importance of mentoring.  And on its 21st anniversary I want to congratulate the Prince’s Trust who are using their local, on the ground, person to person approach to successfully help some of our most disadvantaged young people develop the skills and confidence to consider starting up a business of their own.

    And the Government is also extending funding for the British Volunteering Mentoring Initiative – a national mentoring network which is already linking over a thousand established business men and women who want to mentor with business start ups that need help and advice.

    In the future I hope to see many more business men and women becoming role models for young people in their communities, helping to inspire the business leaders of the future.

    And building on the business clubs already being formed up and down the country, I am urging more businessmen and women to join together to share their experiences and expertise with new entrepreneurs.

    Britain has huge inherent advantages – our creativity, our stability, our outward-looking internationalism.  Now we must build on these strengths and foster a new national spirit of enterprise.

    So its all of us together – young people with ideas, teachers, lecturers, business mentors, local authorities, Government, communities in support.

    And I believe that – working in partnership – we can begin to tap the immense skill and entrepreneurial talent that exists in Britain to the benefit of us all, and change the whole culture of our country.

    Indeed the message is that there is no no-go area for enterprise in twenty first century Britain. And as this morning as we look forward to the events of Britain’s first national Enterprise Week, let us also look forward to creating a new national consensus that is the way forward for Britain:  a shared, patriotic vision of Britain’s economic destiny as a nation united in celebrating aspiration, ambition and enterprise.

  • Gordon Brown – 2004 Speech at the Inner City 100 Reception with US Treasury Secretary John Snow

    Gordon Brown – 2004 Speech at the Inner City 100 Reception with US Treasury Secretary John Snow

    The speech made by Gordon Brown, the then Chancellor of the Exchequer, at 11 Downing Street in London on 16 November 2004.

    It is a great pleasure to welcome all of you to Number 11 Downing Street this evening, as part of this first British National Enterprise Week, to celebrate the Inner City 100 awards – the awards designed to celebrate the fastest growing firms in Britain’s highest unemployment areas.

    And let me congratulate all of the winners on your remarkable achievements:

    The determination, leadership and vision you have demonstrated;

    The innovations that you have developed;

    The exceptional financial return you have delivered;

    The new markets you have identified and created;

    And all the benefits you have brought both to the British economy and to your communities.

    You are the wealth creators, the women and men who can make our nation more successful and more prosperous.

    And let me thank Stewart Wallis and his team at nef, Sir Fred Goodwin and RBS, and the Financial Times for all they have done to support this initiative.

    And it is very appropriate that I introduce to you our special guest this evening. Someone who has distinguished himself both in business – as the former chairman and chief executive of CSX corporation – and in government service – the Treasury Secretary of the United States – John Snow.

    And I want to say – in welcoming John as the first member of the newly re-elected US administration to visit Britain, that what binds America and Britain together is not simply a shared history over the generations – and not just wonderfully good and cordial personal relationships – but shared values.

    Indeed for centuries, America and Britain have been linked by the ideals that we share: a passion for liberty and opportunity; a belief in the work ethic, a commitment to the spirit of enterprise, that anyone with ideas, determination and dynamism and the will to make the effort should have the chance to succeed.

    And today we stand for a Britain and an America that are outward looking, ambitious to succeed, determined to advance an enterprise culture, and fully equipped to lead in the new global economy.

    In May, John and I hosted a US-UK enterprise forum in New York, bringing together experienced business leaders with young entrepreneurs to share ideas on how best we can advance enterprise;

    In June we brought together experts to share ideas on enterprise education in schools;

    The New Entrepreneur Scholarships have enabled 20 UK entrepreneurs to study at a US business school;

    We have jointly called for closer co-operation to tackle barriers to trade and investment between the EU and US – which could generate as much as $150 billion and one million jobs;

    And we have worked closely together in the war against terrorism and the economic reconstruction of Afghanistan and Iraq.

    Deepening our cooperation, I am delighted that today John and I are able to set out a new transatlantic agreement so that through exchanges and the sharing of experience between our two countries we can build a stronger enterprise culture (see attached).

    And today I can announce that this new partnership will include:

    A second UK-US enterprise summit in the UK early next year, bringing together government, business leaders and entrepreneurs to share lessons from areas of national strength, and propose next steps in advancing enterprise;

    Continued cooperation on enterprise education, including holding a UK-US conference for sharing best practice on enterprise education in universities, led by the UK’s new National Council for Graduate Entrepreneurship together with the Kauffman foundation in the US;

    And we are jointly welcoming the June EU-US summit’s call for a new strategy to give fresh impetus to EU-US economic cooperation, which we plan to make a priority for the UK’s presidency of the EU.

    And as we work together on enterprise, we know that in Britain there is much that we can learn from the USA.

    John, you will know that Inner City 100 here is modelled on the USA’s Initiative for the Competitive Inner City. And just as in the USA this competition is:

    Unlocking talent and enterprise;

    Encouraging the young to make the most of themselves;

    And with Inner City 100 award winners creating – on their own – 5,500 jobs after growth averaging over 1,000 per cent, renewing our inner cities, you are proving that there are no no-go areas for enterprise in our country and it is possible to create a national consensus around a Britain where enterprise is truly open to all.

    So let me congratulate you – the prizewinners of Inner City 100 – once again on all you have achieved – you are our future tycoons and business leaders – and you are evidence that Britain truly is an enterprising nation.

    Now let me introduce John Snow to you.

    For the part you have played in strengthening America’s enterprise culture and inspiring us here, John, thank you.

    It is a pleasure to welcome you back to Downing Street and to ask you to address us this evening.

    2005 US – UK Transatlantic Enterprise Partnership

    Both the US administration and the UK Government are committed to the economic reform agenda and to sharing ideas across the Atlantic on how to strengthen enterprise, productivity and jobs – which are essential for faster growth in the US, UK and across Europe, and for balanced global growth.

    Following the success of the US-UK initiative in 2004, the 2005 US-UK Transatlantic Enterprise Partnership will build on the earlier initiatives, and will take the policy dialogue further.

    US – UK Enterprise Initiatives

    UK-US Enterprise Summit

    Following the success of last year’s summit and academic seminar held in the US, we agree to co-chair a second joint government–business enterprise summit in the UK next year to discuss the contribution of enterprise to productivity, jobs and growth and the best methods for encouraging entrepreneurship. The summit will draw on experience from entrepreneurs and policy makers, and share lessons from areas of national strength in both countries. In conjunction with the summit, we will convene a group of academic experts to consider the role of government and education in fostering entrepreneurship, productivity and jobs, to assess progress over the last year and to propose areas for future policy action.

    Enterprise in education

    The UK has established the National Council for Graduate Entrepreneurship in order to encourage students and graduates to consider entrepreneurship as a viable career option. Lessons have already been learnt from US models of stimulating interest in enterprise in universities, and the UK is keen to maintain this momentum. We propose to hold a conference for UK and US leaders of universities, working with the National Council for Graduate Entrepreneurship and the Kauffman Foundation.

    In June this year, experts, teachers, and enterprise education providers from the US and the UK exchanged ideas and best practice on all aspects of enterprise education in schools. We believe that this co-operation should continue and therefore we propose to continue this dialogue in 2005.

    EU-US Economic Cooperation

    We reaffirm the importance of enhancing economic cooperation between the EU and the US for growth and prosperity on both sides of the Atlantic. We welcome the June EU-US summit declaration calling for a new forward-looking strategy for eliminating barriers to further economic integration, and the steps taken by the US administration and the Commission to consult stakeholders.

    We look to the 2005 Summit to endorse an ambitious strategy injecting new impetus into the transatlantic economic agenda and including the active engagement of key policy makers and regulators on both sides of the Atlantic.

    We are also pleased that the OECD is taking forward a study of the potential economic benefits of closer economic cooperation and look forward to the publication of results in March.

  • Gordon Brown – 2004 Speech at the BBC World Service Trust Conference

    Gordon Brown – 2004 Speech at the BBC World Service Trust Conference

    The speech made by Gordon Brown, the then Chancellor of the Exchequer, on 16 November 2004.

    Let me, on behalf of my colleague Hilary Benn and myself, start by thanking for both organising this event – and for all its work – the BBC World Service Trust.

    And let me thank the Trust, started in 1999 to promote development through better communications, and the BBC World Service itself – great British institutions which play a unique role in relationships between Britain and the world, that express Britain’s outward looking internationalism and our responsibilities to the world.

    Let me in particular congratulate the World Service Trust for its less widely publicised but highly innovative work:

    – your pioneering HIV/AIDS campaign which in India alone has helped 7 million;

    – your pioneering public health work as in Kenya where you have engaged 4 million young people;

    – and your pioneering distance learning programmes which in Somalia alone has attracted 10,000 into education and attracted thousands elsewhere.

    And let me thank you especially for holding this conference now, here, on what I believe is the most important issue of our generation – world poverty – and looking forward to its most important year for our generation – 2005.

    For while Hilary will talk specifically about the role of broadcasting I want to emphasise in my opening remarks the importance of the coming year.

    It is the year when, five years after setting the Millennium Development Goals to address world poverty, hunger, disease and illiteracy, world leaders will meet in the United Nations Millennium Summit to examine progress on world poverty.

    In January a special report – the UN Millennium Project report on poverty.

    In February under UK Chairmanship the G7 Finance Ministers meet to examine what the G7 can do on debt and finance for development.

    In March a personal report by Kofi Annan on world poverty.

    In April then June special meetings of G7 finance ministers to prepare a final paper on debt and development.

    In July Britain playing a special role hosting the G8 summit preceded by the report of our Africa Commission.

    In September the UN Millennium Summit.

    And then it is only a few weeks before December in Hong Kong the world trade talks – what was to be the development round for trade – resolving the other great development issue of our time.

    And already in Making Poverty History more than a hundred aid, development, and trade organisations and anti poverty organisations are coming together in probably the biggest expression of public opinion in demonstrations, campaigns, petitions to make poverty the issue of the year.

    2005 is thus a year of opportunity and a year of challenge.

    A testing time as to whether the world can wake up to the scale of the tragedy of poverty and its implications.

    Whether we can come together as never before to fashion a new relationship between rich and poor countries and peoples.

    The year when also in the shadow of failed states and terrorist threats as well as global poverty we will be asked whether the richest countries can summon up a similar level of inspiration and vision as was shown fifty years ago and agree a modern equivalent of the Marshall Plan.

    Whether we can be as bold in our statesmanship as we were in 1945 with the formation of the World Bank.

    And it is the year as I shall explain this morning when I have hopes that:

    – we finally make a reality of our pledge to wipe out 100 per cent of debt to the Highly Indebted Poor Countries;

    – we can have the first trade round the world has ever seen that is professedly shaped in the interests of the poorest countries;

    – and central to this is our British proposal for a new covenant between the developed and developing world to tackle poverty based on a new deal in international finance — and I want to explain how I believe it can be done.

    Today is also the time for politicians and broadcasters each doing our very different jobs and performing our every different roles to take stock – think back on and to learn from, both in terms of achievements and failures, what has been a long journey in the discussion of development issues since twenty years ago – 1984 and 1985 – and what we achieved and didn’t achieve.

    Live Aid was that extraordinary moment when, through the power of television, everyone in the world realised here was an issue that wasn’t just a matter of opinion.

    Live Aid was about communicating the self-evident truth that we cannot be this rich and see people that poor.

    That when we see people starving to death on TV right in front of our eyes we cannot sit there and do nothing.

    Indeed, a recent survey stated that the majority of young people growing from youth to adulthood in these years agree that Live Aid was the single most memorable moment in their lives.

    And Live Aid started with the exposure by journalism – Michael Buerk’s reports from Africa.

    And when Amartya Sen wrote some years ago of the difference between the history of famines in China and India and exposed the difference between the old China – where because there was no free press and no multi-party democracy no one reported the deaths no one ever knew the nameless, forgotten, unmentioned people who died – and the old India – where because there was openness, the authorities were forced to react he was describing in the case of India where the role and responsibility of the media in development starts – through better communications to promote better development. As US Supreme Court Justice Louis Brandeis said, ‘Sunlight is the best disinfectant’

    But this is also the time to realise how – despite that exposure, good works, demonstrations, a stronger public opinion than ever before, how much has been achieved in international conferences – how we fell short and how much has still to be done.

    Return to Ethiopia after twenty years and as Hilary Benn explained to me there are 70 million people and today just 2,000 doctors, life expectancy of less than 50 and children have only a one in ten chance of surviving until the age of one.

    Return to sub-Saharan Africa and find life expectancy less than 50 indeed 46.

    Visit 32 countries which still have an average life expectancy of less than 50.

    Visit 24 countries where one in every ten of children die before the age of one and the everyday story is mothers struggling to save the life of their infant children and in doing so losing their own.

    Let us recognise that since 1984, despite the massive publicity, aid to Africa, which was $33 per person ten years ago, is just $19 per person now – halving of the aid per person.

    Yet while aid is less, I believe we are today challenged more than in 1985.

    In a world where we are, thanks to your communications and media, the first generation to know the numbers, the scale, the sheer extent of the tragedy facing us in Africa and other developing countries.

    And we are, thanks to the development of science, medicine and technology, the first generation to know it to be preventable.

    The achievements of twenty years look modest

    The effect of sunlight has not been a bright new world

    It is hardly surprising that in your survey people think no world leader, no politician has achieved anything as much as Bono and Bob Geldof.

    And here in 2004, twenty years on, after twenty years of relative failures not success, we have to ask ourselves: what are our respective responsibilities moving forward?

    For a measure of our challenge is that the very weapon to tackle poverty – the Millennium Development Goals – the international community’s targets to halve poverty by 2015 – 72 per cent of your survey said they had never heard of them.

    And I believe that our greatest responsibility looking forward to 2005 is:

    – a mission to get to beyond the shock horror, sensationalist, in and out – and to be consistent over time where the challenge is indeed making development issues simple to understand without being superficial;

    – to examine and bring to the public’s attention not just the surface and immediate manifestations but the underlying forces at work and the causes of the problems developing countries face, including challenges of corruption, transparency and governance.

    The urgency is that next year – 2005 – is in my view not only a year where there is a calendar for action on development but make or break year for the world community.

    It is not just the chance to review progress after 20 years of Live Aid.

    It is also when the developing world will ask from January to December – and especially at the UN Millennium Summit – whether the promises to right the great wrongs of our time are to be met:

    – the promise that by 2015 every child would be at school;

    – the promise that by 2015 avoidable infant deaths would be prevented;

    – the promise that by 2015 poverty would be halved.

    In other words promises that rich countries would work with the poor to right the great wrongs of our time.

    And as a spur to action it is the year when Britain’s G8 and EU Presidencies will focus on development and it is the year when the Africa Commission reports.

    The Millennium Development Goals were not a casual commitment .

    In 2000 every world leader signed up.

    Every international body signed up.

    Almost every single country signed up.

    This commitment was a bond of trust, perhaps the greatest bond of trust pledged between rich and poor. But already, so close to the start of our journey, we can see that our destination risks becoming out of reach, receding into the distance.

    For at best on present progress in sub Saharan Africa:

    – primary education for all will be delivered not in 2015 but 2130 – that is 115 years late;

    – the halving of poverty not by 2015 but 2150 – that is 135 years late;

    – and elimination of avoidable infant deaths not by 2015 but by 2165 – that is 150 years late.

    Martin Luther King spoke of the American Constitution as a promissory note.

    And yet – for black Americans – the promise of equality for all had not been redeemed.

    And he said that the cheque offering justice had been returned with ‘insufficient funds’ written on it.

    And in this way he exposed on racial equality the gap between promises and reality.

    And in the same tragic way, the Millennium Goals which were a promise that became a commitment, a timetable and a pledge, are now at risk of being downgraded from pledge to just possibility to just words.

    Yet another promissory note, yet another cheque that has barely been issued but is already being returned with the phrase ‘insufficient funds’ marked on it.

    And the problem is not that the promise was wrong, the pledge unrealistic, the commitment unnecessary but that we have been too slow in developing the means to honour and fulfil them

    That is why in my view we need to urgently summon up the inspiration, vision and commitment in a manner akin to the Marshall Plan of the 1940s when America boldly transferred not 0.7 per cent of its national income but 2 per cent of its national income to war ravaged Europe and by transferring resources and stimulated world trade ushered in decades of world economic growth.

    What should we do?

    Put simply, the UK Government’s proposal for 2005 is for nothing less than what Jonathan Sacks calls a ‘new covenant’ between developed and developing countries…..that as developing countries devise poverty reduction plans and do so to expand their own development, investment and trade, we the richest countries must take three vital steps:

    – first, writing off not just all of the historic debt owed by the poorest countries to the richest but also all of the historic debt they owe to international organisations;

    – second, dismantling our damaging trade barriers and providing the investment needed for the poorest countries to build capacity to trade and protect their most vulnerable citizens;

    – and third, providing the resources that are urgently needed to meet the Millennium Development Goals by increasing development aid on the road to 0.7 per cent of national income and by immediately creating an International Finance Facility.

    And out of this I believe we could achieve not only a major assault on poverty in the poorest countries but pave the way as the Marshall Plan did for greater trade and higher and longer-term world economic growth benefiting us all.

    Let me just summarise what I believe can be achieved by our measures.

    First, on debt relief.

    In 1997 just one country was going to receive debt relief.

    Now 27 countries are benefiting with $70 billion dollars of unpayable debt being written off.

    But when many countries are still being forced to choose between servicing their debts and making the investments in health, education and infrastructure that would allow them to achieve the Millennium Development Goals, we know we must do more.

    That is why in 2005 we must break new ground, go much further than we have gone before, and why we are proposing a new set of principles to govern the next stage in debt relief.

    First, that the richest countries match bilateral debt relief of up to 100 per cent with multilateral debt relief of up to 100 per cent so that all debts are covered.

    Second, that the cancellation of debts owed to the International Monetary Fund should be financed by using IMF gold.

    Third, that instead of waiting for countries to contribute as we used to do to a World Bank trust fund, countries make a unique declaration that they will repatriate their share of the World Bank and the African Development Bank’s debts to their own country.

    And so that is why Britain has announced that Britain will relieve those countries still under the burden of this debt to these banks by unilaterally paying our share – 10 per cent – of payments to the World Bank and African Development Bank as we urge other countries to do so.

    Alongside more debt relief, 2005 is the opportunity that may not easily return if missed to agree a progressive approach to trade.

    You know the damage that rich countries protectionism has done to entrench the poverty of the poorest countries. We spend as much subsidising agriculture in rich countries as the whole income of all the 689 million people in sub Saharan Africa taken together. And for every dollar given to poor countries in aid, two dollars are lost because of unfair trade.

    So 2005 is the time to send a signal and to agree a new policy.

    First, it is time for the richest countries to agree to end the hypocrisy of developed country protectionism by opening our markets, removing trade-distorting subsidies and in particular, doing more to urgently tackle the scandal and waste of the Common Agricultural Policy show we beehive in free and fair trade.

    Second, it is time to move beyond the old Washington consensus of the 1980s and recognise that while bringing down unjust tariffs and barriers can make a difference, developing countries must also receive support, including additional finance, so that they can carefully design and sequence trade reform into their own poverty reduction strategies.

    And third, because it is not enough to say ‘you’re on your own, simply compete’ we have to say ‘we will help you build the capacity you need to trade’ – not just opening the door but helping you gain the strength to cross the threshold. We have to recognise that developing countries will need additional resources from the richest countries both to build the economic and infrastructure – capacity they need to take advantage of trading opportunities – and to prevent their most vulnerable people from falling further into poverty.

    And our discussion of debt relief and trade leads to a far more important point, the essential challenge of 2005, that our deal with the developing countries must involve a transfer of resources.

    I said that since the 1980s aid to Africa, which was $33 per person ten years ago, had halved to just $19 per person now.

    And that indeed where aid has been increased in recent times it has simply been in the form of debt relief.

    The truth is that the scale of the resources to tackle disease, illiteracy and global poverty is far beyond what traditional funding can offer, even in the best case scenario.

    In the spending review the Government raised UK overseas aid to 0.47 per cent of national income by 2008, including £1.25 billion a year for Africa, and we reported that UK aid was on track to rise beyond 0.5 per cent after 2008 and to 0.7 per cent of national income by 2013. And I urge all nations yet to reach 0.7 to move further and faster to higher aid levels and on towards that target.

    But we know that even if one or two of the G7 could overcome fiscal constraints and go to 0.7 per cent tomorrow, we still would not reach the scale of resources needed – at least $50 billion extra a year.

    And even if all announced a timetable – as they should consider like us – for 0.7, that timetable would be in the future and would still leave the question of how we provide urgently needed additional resources now.

    That is why the UK Government has put forward its proposal for stable, predictable, long-term funds frontloaded to tackle today’s problems of poverty, disease and illiteracy through an International Finance Facility.

    The IFF is in the tradition of the Marshall Plan of 1948, indeed modelled on the founding principles of the World Bank in 1945 where nations provided resources to an international institution that then borrowed on the international capital markets.

    And let me just explain what the IFF could achieve for the world’s poor.

    The IFF is founded upon long-term, binding donor commitments from the richest countries like ourselves.

    It builds upon the additional 16 billion dollars already pledged at Monterrey.

    And on the basis of these commitments and more it leverages in additional money from the international capital markets to raise the amount of development aid for the years to 2015.

    By locking in commitments from a wide range of donors, the IFF would enable us to front load aid for investment in development, enabling a critical mass of predictable, stable and coordinated aid as investment to be deployed over the next few years when it will have the most impact in achieving the Millennium Development Goals – saving lives today that would otherwise be lost.

    The IFF would enable us to invest simultaneously across sectors – in education and health, trade capacity and economic development – so that instead of having to choose between urgent emergency disaster relief and long term investment the impact of extra resources in one area reinforces the investment in another.

    And the IFF will allow us to attack the root causes of poverty not just the symptoms – focusing on developing the capacity and the dignity people need to help themselves.

    Aid as investment for the future not compensation for being poor.

    And let me tell you the scale of what I am proposing.

    As a result of all campaigns taken together international aid is rising from 50 billion dollars a year four years ago to around 60 billion dollars – a huge achievement.

    But our proposal for next year is to raise development aid immediately not from 60 billion to 65 billion or even 70 billion but effectively a doubling of aid to over 100 billion dollars per year.

    With one bold stroke: to double development aid to halve poverty.

    So the practical benefits of the IFF are:

    – we provide grants to help ensure a sustainable exit from debt;

    – we provide the support poor countries need to invest in infrastructure, education, health and economic development so they can benefit from access to our markets;

    – we make primary schooling for all not just a distant dream but a practical reality – meeting these needs and rights now and not deferring them to an uncertain future;

    – and we meet our global goals of cutting infant mortality and maternal mortality, eliminating malaria and tuberculosis and treating millions more people who are suffering from HIV/AIDS.

    Of course, we will have to convince a sceptical world that money for development will not be wasted so in the Commission for Africa report Professor Nick Stern will provide the examples of how the Poverty Reduction Plans are making aid more effective and how countries can absorb much more aid. And making better use of aid – reordering priorities, untying aid and pooling funds internationally to release additional funds for the poorest countries – is essential to achieve both value for money and the improved outcomes we seek. But – in addition to these reforms – the fact is that unless we adopt the IFF or a similar mechanism immediately there is simply no other way of meeting the Millennium Development Goals in time.

    Of course we are ready to look at other means – international taxes, more resources direct to development banks, the IMF and the World Bank – but the fact is that no matter how much we praise country by country initiatives and announcements, existing commitments on their own will not get us there.

    Existing mechanisms on their own will not get us there.

    We can see this now.

    We need not wait a decade to make this judgment.

    And adopting the IFF now will give us momentum today instead of putting action off until tomorrow.

    Indeed, frontloading is not just better way but perhaps the only way of avoiding catastrophe.

    And let me Just give an example of what – because of the IFF – is already possible

    The Global Alliance for Vaccines and Immunisation and the Gates Foundation is interested in applying the principles of the IFF to the immunisation sector – donors making long term commitments that can be securitised in order to frontload the funding available to tackle disease.

    If, by these means, GAVI could increase the funding for its immunisation programme by an additional $4 billion over ten years, then it would be possible that their work could save the lives of an additional 5 million people between now and 2015.

    So in one fund, with one initiative, we can glimpse the possibilities open to us if we act together. If we could do the same for health, for schools, for debt, for the capacity to trade, a doubling of aid to halve poverty within ten years is within our grasp

    And let me just add.

    The recent breakthrough which for the first time gives us a vaccination to prevent malaria that could be ready in three to four years time is a revolution in our time. The challenge is in an area where there are insufficient purchasers with funds we need to ensure that the vaccine does go into commercial production and is available at affordable prices. And therefore I can announce that the British Government working with other Governments is ready to enter into agreements to purchase these vaccines in advance to ensure a secure market and that the vaccines are available more cheaply – and thus avoid many of the 1 million deaths from malaria each year.

    So when people ask is it possible, I say:

    – people thought the original plans for the World Bank were the work of dreamers

    – people thought that the Marshall Plan unattainable

    – even in 1997 when we came to power people thought debt relief was an impossible aspiration and yet we are wiping out 100 billion dollars of debt

    – people thought no more countries would sign up to a timetable for 0.7 per cent in overseas development aid and yet year this year alone five

    countries have done so.
    Each of us of course have our respective responsibilities, our very different duties, as broadcasters, politicians, aid organisations.

    A measure however of the opportunity of 2005 is that:

    in the survey published today three out of four people said they were very interested or interested in learning more about poverty in developing countries; and 86 per cent said there was not enough or too little media coverage of poverty in developing countries.

    So for all of us – politicians and broadcaster – each doing our very different jobs, an even greater measure of the potential is that in 2000 first hundreds, then thousands, then millions of people first in one country then in one continent, then in all countries, and in all continents came together to demand debt relief and in doing so changed the world.

    And even now that coalition is not just being reformed but growing in strength.

    More people in development organisations than ever before.

    100 organisations coming together in the new coalition – Make Poverty History.

    The most amazing coalition of people coming together – and I congratulate Bob Geldof, Bono, Richard Curtis and all the churches and faith organisations who do so much good and have come together to make a plea for action in 2005.

    I quoted Martin Luther King a few months ago in saying the arc of the moral universe is long but it does bend towards justice.

    This was not an appeal to some iron law of history nor a demand that journalists act in a particular way but to remind people that by their own actions they can and do change the world for good.

    And I believe that:

    with the scale of the challenge revealed;
    with the organisation of public opinion now happening in Britain and in other countries;
    and if there is a determination among world leaders to be bold;
    the arc of the moral universe while indeed long will bend towards justice in the months and years to come.

  • Gordon Brown – 2004 Speech at the Political Studies Association Awards Ceremony

    Gordon Brown – 2004 Speech at the Political Studies Association Awards Ceremony

    The speech made by Gordon Brown, the then Chancellor of the Exchequer, on 30 November 2004.

    The longer I am a Member of Parliament the more I realise that to resolve the challenges of the present and to equip yourself as a nation for the future we must have a deeper understanding of our past – of our history and of our society.

    Indeed – as I say in the British Council pamphlet published today – the nations that will succeed in the modern world will be those that have a stronger sense of who they are, what they strive to achieve and – in the face of terrorism – what they are defending.

    It is only by understanding that Britishness is founded not on race or ethnicity or even on unchanging institutions but on shared values that you are best placed to solve questions of racial integration and then asylum and immigration. And David Blunkett and I are agreed that lessons in citizenship should involve teaching about the values that underpin British history.

    It is only by understanding that our values are based on liberty, tolerance and civic duty that we can evolve for our time the checks and balances of a modern constitution best suited to Britain’s needs and British peoples aspirations.

    It is only by understanding what it is to be British and that to be British involves being outward looking, internationalist and Pro-European that we can solve the vexed question of Europe for our generation.

    So instead of marginalising our history or apologising for our history we should be rediscovering in our history our essential genius – the values of liberty, civic duty, fair play, enterprise and internationalism that shape our institutions. And in receiving this award let me make a proposal that on a non-partisan basis, across academia, politics, and journalism – we can debate Britishness and interested people will establish a new Institute and Forum for Britishness studies examining the forces at work in shaping the future of Britain.

    Indeed, the theme of the Pre-Budget Report will be that the next decade can be a British decade, that Britain’s success and destiny depends upon understanding and building upon our historic strengths our stability, our openness to the world, our scientific creativity, our world class universities – and then understanding and addressing our weaknesses – the need to invest long term in science, enterprise, education and in the potential of every young person and adult.

    So at the heart of the Pre-Budget Report is a patriotic vision of Britain’s future as a country of ambition and aspiration – how we make Britain the best place to grow up in, the best place to study, the best place to start a business and to work – as we build a Britain that makes us even more proud to be British.

  • Gordon Brown – 2004 Speech at CAFOD’s Pope Paul VI Memorial Lecture

    Gordon Brown – 2004 Speech at CAFOD’s Pope Paul VI Memorial Lecture

    The speech made by Gordon Brown, the then Chancellor of the Exchequer, on 8 December 2004.

    To be asked to address you tonight, to be part of this great lecture series in memory of Pope Paul VI is both humbling and challenging.

    It was Pope Paul VI who as early as the 1960s alerted the modern world that the old evil of poverty had to be addressed as an unacceptable scourge of the new global economy.

    It was Pope Paul VI who in 1967 in his ‘Encyclical Populorum Progressio’ – ‘Development of Peoples’ – urged upon the richest countries their sacred duty to help the poorest.

    And it was Pope Paul VI who set out, for our generation, the obligations that we all have a duty to meet: obligations that arise from – as he said in his own words:

    – Our mutual solidarity;
    – The claims of social justice;
    – And universal charity.

    In his book ‘The Power of Myth’ Joseph Campbell describes a hero as someone who has given his or her life to something bigger than him or herself.

    And today I want to honour not just the legacy of Pope Paul VI but all of you here tonight – missionaries, aid workers, supporters, contributors campaigners – as our modern heroes. For just as surely as some of our greatest heroes of history, your religious faith, your moral anger at poverty, your sense of duty, has led you to fight for great causes, stand for the highest ideals and do God’s work on earth. And let me on your behalf thank Cardinal Murphy O’Connor whom I and the British people admire so much for his leadership not just in this country but throughout Europe; Chris Bain for leading CAFOD and for his crucial, catalytic role in bringing the ‘Make Poverty History’ campaign together; and all members of CAFOD.

    The reward you seek, as you have always said, is not recognition nor status nor titles nor money but that the coming generation – who never even knew you – enjoys a better life thanks to your courageous work.

    And I also want to pay my personal tribute to the work of CAFOD over forty years and your leadership in achieving, by your determined campaigning, what many thought impossible – 100 per cent bilateral debt relief.

    You led a coalition whose voices rose to a resounding chorus that echoed outwards to the world from Birmingham, then from Cologne, then from Okinawa – a clarion call to action speaking not for yourselves alone but for the hopes of the whole world.

    And you led a coalition that achieved more standing together for the needs of the poor in one short year than all the isolated acts of individual governments could have achieved in one hundred years.

    Reminding us that as CAFOD campaigning for justice for the world’s poor you have for forty years:

    – Changed the way we think about giving;
    – Deepened our commitment to serving others;
    – Demonstrated that duty and obligation are more powerful than selfishness or greed;
    – And in doing so brought the world closer together.

    Now, it is the churches and faith groups that have, across the world, done more than any others – by precept and by example – to make us aware of the sheer scale of human suffering – and our duty to end it.

    Indeed, when the history of the crusade against global poverty is written, one of its first and finest chapters will detail the commitment of the churches in Britain to help the world’s poor.

    And my theme tonight is what this generation working together, each and all of us, can do – that we are not powerless individuals but, acting together, have the power to shape history.

    And each of us, building on the individual causes we cherish – from work on debt relief to education, from fair trade to clean water, from blindness to TB, from AIDS to child vaccination – can together not only make progress for our direct concerns but also turn globalisation from a force that breeds insecurity to a force for justice on a global scale.

    Today I want to sketch out for you a vision of a new deal that demands a new accountability from both rich and poor countries.

    A new compact between those to whom so much is given and those who have so little.

    More than a contract – which is after all one group tied by legal obligations to another – and nothing less than what the author of ‘The Politics of Hope’ called a ‘covenant’ – the richest recognising out of duty and a deep moral sense of responsibility their obligations to the poorest of the world.

    And I want suggest that at the same time as developing countries devising their own poverty reduction plans, we the richest countries must take three vital steps:

    – first, agreeing a comprehensive financing programme – that is we achieve a breakthrough to complete 100 per cent debt relief; find a way to persuade others to join us in declaring their timetables on increasing development aid to 0.7 per cent of national income; and immediately raise an additional $50 billion dollars a year, doubling aid to halve poverty, through the creation of a new International Finance Facility;
    – second, with this new finance, that we advance to meet the Millennium Development Goals on health, education and the halving of poverty; use this unique opportunity to drive forward the internationalisation of AIDS research and the advance purchase of HIV/AIDS and malaria vaccines; build the capacity of health and education systems; and deliver to the 105 million children who do not go to school today, two thirds of them girls, our promise of primary education for all;
    – and third, that we deliver the Doha development round on trade, and make it the first ever world trade agreement to be in the interests of the poorest countries.

    Indeed, because progress on each of these is dependent on progress on all of these, we must during 2005 advance all of these causes together.

    Exactly five years ago in New York and in a historic declaration every world leader, every international body, almost every single country signed up to a shared commitment to right the greatest wrongs of our time.

    The promise that by 2015 every child would be at school.
    The promise that by 2015 avoidable infant deaths would be prevented.
    The promise that by 2015 poverty would be halved.

    This commitment was a bond of trust, perhaps the greatest bond of trust pledged between rich and poor.

    But already, so close to the start of our journey – and 20 years after the problems were first exposed to this generation through Live Aid – we can see that our destination risks becoming out of reach, receding into the distance.

    And at best on present progress in Sub Saharan Africa:

    – primary education for all will be delivered not in 2015 but 2130 – that is 115 years too late;
    – the halving of poverty not by 2-0-1-5 but by 2-1-5-0 — that is 135 years too late;
    – and the elimination of avoidable infant deaths not by 2015 but by 2165 — that is 150 years too late.

    So when people ask how long, the whole world must reply:

    150 years is too long to wait for justice.
    150 years is too long to wait when infants are dying in Africa while the rest of the world has the medicines to heal them.
    150 years is too long for people to wait when a promise should be redeemed, when the bond of trust should be honoured now in this decade.

    Martin Luther King spoke of the American Constitution as a promissory note.

    And yet – for black Americans – the promise of equality for all had not been redeemed.

    He said that the cheque offering justice had been returned with ‘insufficient funds’ written on it.

    He said, ‘we refuse to believe that the bank of justice is bankrupt.

    And he said the time had come to ‘cash this cheque which would give upon demand the riches of freedom and the security of justice’.

    And in this way he exposed on racial equality the gap between promises and reality.

    But in exactly the same way today’s Millennium Goals – a commitment backed by a timetable – are now in danger of being downgraded from a pledge to just a possibility to just words.

    Yet another promissory note, yet another cheque marked ‘insufficient funds’.

    And the danger we face today is that what began as the greatest bond between rich and poor for our times is at risk of ending as the greatest betrayal of the poor by the rich of all time.

    As a global community we are at risk of being remembered not for what we promised to do but for what we failed to deliver, another set of broken hopes that break the trust of the world’s people in the world’s governments.

    And when we know the scale of suffering that has to be addressed, the problem is not that the promise was wrong, the pledge unrealistic, the commitments unnecessary but that we have been too slow in developing the means to honour, fulfil and deliver them.

    In the past when we as a global community failed to act we often blamed our ignorance – we said that we did not know.

    But now we cannot use ignorance to explain or excuse our inaction. We can see in front of our TV screens the ravaged faces of too many of the 30,000 children dying unnecessarily each day.

    We cannot blame our inaction on inadequate science – we know that a quarter of all child deaths can be prevented if children sleep beneath bed nets costing only 4 dollars each.

    We cannot defend our inaction invoking a lack of medical cures – for we know that as many as half of all malaria deaths can be prevented if people have access to diagnosis and drugs that cost no more than twelve cents.

    The world already knows we know enough. But the world knows all too well that we have not done enough. Because what is lacking is will.

    So if we are to make real progress we must – together from this meeting room this evening – and then from countless other centres of concern and endeavour, go out into this country and other countries and show people and politicians alike everywhere why it is morally and practically imperative that we not only declare but fight and win a war against poverty; why we must not only pass resolutions and make demands but move urgently to remove injustice; why lives in the poorest countries depend upon converting, in the richest countries, apathy to engagement, sympathy to campaigning, half hearted concern to wholly committed action.

    In short we must share the inspiration we have of the power of the dream of a better world – and why it is now more urgent than ever that people everywhere are awakened to the duties we owe to people elsewhere whose hopes for life itself depend upon our help, duties not just to people who are neighbours but to people who are strangers.

    So that even when we know that our sense of empathy diminishes as we move outwards from the immediate, face to face, person to person relationships of family outwards to neighbourhood to country to half a world away, we still feel and ought to feel however distantly the pain of others – and why it is right to believe in something bigger than ourselves, bigger even than our own community as a wide as the world itself.

    It has been written that, ‘if we answer the question why we can handle the question how’.

    And this evening I am going to put forward three propositions:

    – that our dependence upon each other should awaken our conscience to the needs not just of neighbours but of strangers;
    – more than that, that our moral sense should impel us to act out of duty and not just self interest;
    – and that the claims of justice are not at odds with the liberties of each individual but a modern expression of them that ensures the dignity of all – and there is such a thing as a moral universe.

    First, does not Martin Luther King show our responsibilities to strangers, to people we have never met and who will never know our names, when he describes each of us as strands in an inescapable network of mutuality, together woven into a single garment of destiny?

    Indeed just as the industrialisation of the eighteenth century opened people up to a society which lay beyond family and village and asked individuals who never met each other to understand the needs of all throughout their own country, so too the globalisation we are witnessing asks us to open our minds to the plight and the pain of millions we will never meet and are continents away but upon whom, as a result of the international division of labour, we depend upon for our food, our clothes, our livelihoods, our security.

    I recalled a poem in my Labour conference speech:

    ‘It is the hands of others who grow the food we eat, who sew the clothes we wear, who build the houses we inhabit; it is the hands of others who tend us when we’re sick and lift us up when we fall; it is the hands of others who bring us into the world and who lower us into the earth’

    When I talked of the hands of others, I meant our dependence upon each other – the nurse, the builder, the farm worker, the seamstress – not just in our own country but across the earth. We are in an era of global interdependence, relying each upon the other – a world society of shared needs, common interests, mutual responsibilities, linked densities, our international solidarity.

    And since September 11th there is an even more immediate reason for emphasising our interdependence and solidarity. Now more than ever we rely on each other not just for our sustenance but for our safety and security.

    Colin Powell, US Secretary of State, states: ‘What poverty does do is breed frustration and resentment which ideological entrepreneurs can turn into support for terrorism in countries that lack the political rights, the institutions, necessary to guard the society from terrorists. Countries that are lacking basic freedoms. So we can’t win the war on terrorism unless we get at the roots of poverty, which are social and political as well as economic in nature’.

    And President Bush said on the eve of the Financing for Development Conference in Monterrey: ‘Poverty doesn’t cause terrorism. Being poor doesn’t make you a murderer. Most of the plotters of September 11th were raised in comfort. Yet persistent poverty and oppression can lead to hopelessness and despair. And when governments fail to meet the most basic needs of their people, these failed states can become havens for terror. In Afghanistan, persistent poverty and war and chaos created conditions that allowed a terrorist regime to seize power. And in many other states around the world, poverty prevents governments from controlling their borders, policing their territory, and enforcing their laws. Development provides the resources to build hope and prosperity, and security’

    So does not everything that we witness across the world today from discussing global trade to dealing with global terrorism symbolise just how closely and irrevocably bound together are the fortunes of the richest persons in the richest country to the fate of the poorest persons in the poorest country of the world even when they are strangers and have never met, and that an injury to one must be seen as an injury to all?

    But is not what impels us to act far more than this enlightened self-interest?

    Ought we not to take our case for a war against poverty to its next stage – from economics to morality, from enlightened self interest that emphasises our dependence each upon the other to the true justice that summons us to do our duty – and to see that every death from hunger and disease is as if it is a death in the family?

    For is there not some impulse even greater than the recognition of our interdependence that moves human beings even in the most comfortable places to empathy and to anger at the injustice and inhumanity that blights the lives not just of neighbours but of strangers in so many places at so high a cost?

    It is not something greater, more noble, more demanding than just our shared interests that propels us to demand action against deprivation and despair on behalf of strangers as well as neighbours – and is it not our shared values?

    It is my belief that even if we are strangers in many ways, dispersed by geography, diverse because of race, differentiated by wealth and income, divided by partisan beliefs and ideology, even as we are different diverse and often divided, we are not and we cannot be moral strangers for there is a shared moral sense common to us all:

    Call it as Lincoln did – the better angels of our nature;
    Call it as Winstanley did – the light in man;
    Call it as Adam Smith did – the moral sentiment;
    Call it benevolence, as the Victorians did; virtue; the claim of justice; doing ones duty.
    Or call it as Pope Paul VI did – ‘The good of each and all’

    It is precisely because we believe, in that moral sense, that we have obligations to others beyond our front doors and garden gates, responsibilities to others beyond the city wall, duties to others beyond our national borders as part of one moral universe – precisely because we have a sense of what is just and what is fair – that we are called to answer the hunger of the hungry, the needs of the needy the suffering of the sick whoever and wherever they are bound together by the duties we feel we owe each other. We cannot be fully human unless we care about the dignity of every human being.

    Christians say: do to others what you would have them do to you.
    Jews say: what is hateful to you, do not to your fellow man.
    Buddhists say: hurt not others in ways that you yourself would find hurtful.
    Muslims say: no one of you is a believer until he desires for his brother that which he desires for himself.
    Sikhs say: treat others as you would be treated yourself.
    Hindus say: this is the sum of duty: do not do to others what would cause pain if done to you.

    Faiths that reveal truths not to be found in economic textbooks or political theory – beliefs now held by people of all faiths and none – that emphasise our duty to strangers, our concern for the outsider, the hand of friendship across continents, that say I am my brother’s keeper, that we don’t only want injustice not to happen to us, we don’t want injustice to happen to anyone.

    Indeed the golden rule runs through every great religion – or what the Bible calls righteousness or what you and I might call justice – and the words of Gandhi reinforce this golden rule:

    ‘Whenever you are in doubt apply the following test. Recall the face of the poorest and the weakest man [woman] whom you may have seen, and ask yourself, if the step you contemplate is going to be of any use to him [her]…. Then, he said, you will find your doubts melt away.’

    So we are not – morally – speaking in tongues. And while there are many voices from many parts and many places, expressed in many languages and many religious faiths, we can and must think of ourselves coming together as a resounding chorus singing the same tune – and as a choir achieving a harmony which can move the world.

    So our interdependence leads us to conclude that when some are poor, our whole society is impoverished.
    And our moral sense leads us to conclude, as we have been told, that when there is an injustice anywhere, it is a threat to justice everywhere.

    But can we not also say – and this is my third point – that, even when we are talking about the needs of strangers, the claims of justice – that we should do our duty to ensure the dignity of every individual – are now more powerful than ever? It is because the dignity of the individual is at the heart of our concerns about human beings, that those claims of justice are not – as many once argued – at odds with the requirement for liberty but are essential for the realisation of liberty in the modern world.

    In her recent book Gertrude Himmelfaarb shows that, when the 17th and 18th centuries brought a revolt against outmoded forms of hierarchy, there was understandably a preoccupation not with justice or duty but with liberty. In 1789 ‘liberty’ literally came before ‘equality’ and ‘fraternity’.

    The call for freedom from outmoded forms of hierarchical obligations was then the only path to ending the power of absolute monarchs and repealing old mercantilist laws.

    But although the great Enlightenment philosophers marched under the banner of liberty, rightly wishing to prevent any ruler invading the freedom of the citizen, a closer reading of these writers shows that, for them, the march of individual freedoms did not release people from their obligations to their fellow citizens and fulfilling the duties they owed to each other. For them liberty was not at odds with justice or duty but liberty and duty advanced together.

    One of the greatest tribunes of liberty, John Stuart Mill, stated categorically that ‘there are many positive acts to the benefit of others which anyone may rightfully be obliged to perform’.

    And Rousseau wrote that ‘as soon as men ceased to consider public service as the principle duty of citizens we may pronounce the state to be on the verge of ruin’.

    And as Adam Smith – often wrongly seen as the patron of free market capitalism without a conscience – put it: the philosophy of ‘all for ourselves and nothing for other people’ was a ‘vile maxim’. ‘Perfection of human nature was to feel much for others and little for ourselves, to restrain our selfish and indulge benevolent affections’. And in that spirit and as he died Smith, not just the writer about the ‘invisible hand’ but about the ‘helping hand’, was writing a new chapter for his ‘Theory of Moral Sentiments’ entitled ‘On the Corruption of our Moral Sentiments’ which is occasioned by ‘the disposition to admire the rich and great and to despise or neglect persons of poor and mean condition’.

    So the great apostle of freedom believed passionately in justice and in duty to others and saw no contradiction in saying so. And in our century this should be our focus. We should be asking not just what rights you can enforce on others but asking what duties we can discharge for others.

    Selbourne says duties without rights makes people slaves but rights without duties makes them strangers.

    Moral strangers demand rights without duties.

    Moral neighbours say that every time one person’s dignity is diminished or taken away through no fault of their own it is an offence against justice.

    And if the dignity of a child or adult is diminished by poverty, or debt, or unfair trade, we are all diminished.

    Enlightened self interest may lead us to propose a contract between rich and poor founded upon our mutual responsibilities because of our interdependence. But it is our strong sense of what is just that demands a covenant between rich and poor founded on our moral responsibility to each other – that even if it was not in our narrow self interest to do so it would still be right for every citizen to do ones duty and meet the needs, and enhance the dignity, of strangers.

    My father used to tell me we can all leave our mark for good or ill – and he quoted Martin Luther King saying everyone from the poorest to the richest can be great because everyone can serve.

    That all of us, no matter how weak or frail, or at times inadequate, can make a difference for good is emphasised by a story told by Chief Rabbi Jonathan Sacks writing of the film ‘About Schmidt’. Schmidt – played by Jack Nicholson – describes a futile life of family estrangement ending in an equally meaningless retirement endured with an overriding sense of failure. In the film Schmidt says:

    ‘I know we’re all pretty small in the big scheme of things what in the world is better because of me? I am weak and I am a failure there’s just no getting around it…soon I will die…maybe in twenty years, maybe tomorrow, it doesn’t matter…when everyone who knew me dies too, it will be as though I never even existed…what difference has my life made to anyone? None that I can think of…none at all.

    But then he receives a letter from the teacher of a six year old in Tanzania whom in a small charitable gesture Schmidt has been paying for schooling and health care.

    The young boy cannot yet write, the teacher says, but he has sent Schmidt a drawing instead. It shows two little line figures, one large and one small, obviously the boy and Schmidt.

    And the drawing shows them holding hands together as the sun shines down upon their friendship.

    And so the film ends with Jack Nicholson’s character slowly grasping that he has done one good deed in his life – for a stranger – a young child far away whom he has never met.

    The duty to others done by Schmidt giving his life meaning.
    Proving that one generous act can redeem a life.
    So we do live in one interdependent world.
    We are indeed part of one moral universe.
    Even the meanest of us possesses a moral sense.
    What really mattes is the compassion we show to the weak.
    And you value your society not for its wealth and power over others but by how it can empower the poor and powerless.

    Now that moral sense may not, be ‘a strong beacon light radiating outward at all times to illuminate in sharp outline all it touches’ as James Q Wilson describes ‘The Moral Sense’ so brilliantly. Rather the moral sense is like ‘a small candle flame flickering and spluttering in the strong winds of passion and power, greed and ideology’. As Wilson says ‘brought close to the heart and cupped in ones hand it dispels the darkness and warms the soul’. And even when it burns as a flicker it is still a flame and a flame that can never be extinguished.

    So we do not wipe out the debt of the poorest countries simply because these debts are not easily paid.

    We do so because people weighed down by the burden of debts imposed by the last generation on this cannot even begin to build for the next generation.

    To insist on the payment of these debts offends human dignity – and is therefore unjust.

    What is morally wrong cannot be economically right.

    In the words of Isaiah – we must ‘undo the heavy burdens and let the oppressed go free’.

    So let me set out the agenda that flows from our moral sense.

    In 1997 just one country was going to receive debt relief.

    Now 27 countries are benefiting with $70 billion dollars of unpayable debt being written off.

    And it is thanks to your campaigning on debt relief that:

    – with debt relief in Uganda, 4 million more children now go to primary school;
    – with debt relief in Tanzania, 31,000 new classrooms have been built and 18,000 new teachers recruited;
    – with debt relief in Mozambique, half a million children are now being vaccinated against tetanus, whopping cough and diphtheria.

    But like me, I know you are less interested in what we’ve done than in what is still to do.

    And when many countries are still being forced to choose between servicing their debts and making the investments in health, education and infrastructure that would allow them to achieve the Millennium Development Goals, we know we must do more.

    That is why in 2005 we must break new ground, go much further than we have gone before, and why, having heard the proposals you put to us, we are proposing a new set of principles to govern the next stage in debt relief.

    First, that the richest countries match bilateral debt relief of up to 100 per cent with multilateral debt relief of up to 100 per cent so that all debts are covered.

    Second, that the cancellation of debts owed to the International Monetary Fund should be financed by using IMF gold.

    Third, that instead of running down the resources available internationally for development donor countries make a unique declaration that they will cover their share of the World Bank and the African Development Bank’s debts on behalf of eligible developing countries.

    And so that is why Britain has announced that we will relieve those countries still under the burden of this debt to these banks by unilaterally paying our share – 10 per cent – of payments to the World Bank and African Development Bank as we urge other countries to do so.

    Next, to put our duties to each other at the centre of policy, we also insist on a progressive approach to trade.

    And fair trade is not just about the financial gains, its also about giving people dignity – enabling people to stand on their own two feet and using trade is a springboard out of poverty.

    You know the damage that rich countries protectionism has done to entrench the poverty of the poorest countries.

    We spend as much subsidising agriculture in the European Union as the whole income of all the 689 million people in Sub Saharan Africa taken together.

    The money that the US spends just in subsidising 25,000 cotton farmers dwarfs the total income of Burkino Faso where 2 million people are dependent on cotton for their livelihoods

    And for every dollar given to poor countries in aid, two dollars are lost because of unfair trade.

    So 2005 is the time to send a signal and to agree a new policy.

    First, it is time for the richest countries to agree to end the hypocrisy of developed country protectionism by opening our markets, removing trade-distorting subsidies and in particular, doing more to urgently tackle the scandal and waste of the Common Agricultural Policy shows we believe in fair trade.

    Second, it is time to move beyond the old Washington consensus of the 1980s and recognise that while bringing down unjust tariffs and barriers can make a difference, developing countries must also be allowed to carefully design and sequence trade reform into their own Poverty Reduction Strategies.

    And third, because it is not enough to say ‘you’re on your own, simply compete’ we have to say ‘we will help you build the capacity you need to trade’ – not just opening the door but helping you gain the strength to cross the threshold. We have to recognise that developing countries will need additional resources from the richest countries both to build the economic and infrastructure – capacity they need to take advantage of trading opportunities – and to prevent their most vulnerable people from falling further into poverty.

    And our discussion of debt relief and trade leads to the essential challenge of 2005, that our new deal with the developing countries must involve a transfer of resources.

    Not aid as compensation for being poor but aid as investment in the future. And so like debt and trade this is about enhancing the dignity and potential of each individual.

    Since the 1980s aid to Africa, which was $33 per person ten years ago, had halved to just $19 per person now.

    So we need a new financing programme.

    Thanks to your campaigning, we are the first UK Government to be able to announce a timetable for 0.7 per cent.
    And over the next year we plan to ask other countries to join us and nine others in becoming countries which have set a timetable towards 0.7.

    But the truth is that the scale of the resources needed immediately to tackle disease, illiteracy and global poverty is far beyond what traditional funding can offer today.

    That is why the UK Government as part of the financing package to reach the Millennium Development Goals has put forward its proposal for stable, predictable, long-term funds frontloaded to tackle today’s problems of poverty, disease and illiteracy through the bold initiative of a new global finance facility.

    The International Finance Facility is in the tradition of the Marshall Plan of 1948, when to finance the development of a ravaged post war Europe, the richest country in the world – the USA – agreed to transfer one per cent of their national income each and every year for four years – a transfer in total of the equivalent in today’s money of $75 billion a year.

    And it is modelled on the founding principles of the World Bank in 1945 where nations provided resources to an international institution that then borrowed on the international capital markets.

    Let me explain what the IFF could achieve for the world’s poor.

    The IFF is founded upon long-term, binding donor commitments from the richest countries like ourselves.

    It builds upon the additional $16 billion dollars already pledged at Monterrey.

    And on the basis of these commitments and more it leverages in additional money from the international capital markets to raise the amount of development aid for the years to 2015.

    By locking in commitments from a wide range of donors, the IFF would enable us to front load aid for investment in development, enabling a critical mass of predictable, stable and coordinated aid as investment to be deployed over the next few years when it will have the most impact in achieving the Millennium Development Goals – saving lives today that would otherwise be lost.

    The IFF would enable us to invest simultaneously across sectors – in education and health, trade capacity and economic development – so that instead of having to choose between urgent emergency disaster relief and long term investment the impact of extra resources in one area reinforces the investment in another.

    And the IFF will allow us to attack the root causes of poverty not just the symptoms – focusing on developing the capacity and the dignity people need to help themselves.

    And let me just explain the scale of what I am proposing.

    In all our campaigns taken together we have managed to raise international aid from 50 billion dollars a year to 60 billion.

    Our proposal is to raise development aid immediately not from 60 billion to 65 billion or even 70 billion but effectively a doubling of aid to over 100 billion dollars per year.

    With one bold stroke: to double development aid to halve poverty.

    An extra 50 billion that will allow us to attack the root causes of poverty not just the symptoms, and to meet the Millennium Development Goals.

    The aim of the International Finance Facility is to bridge the gap between promises and reality.
    Between hopes raised and hopes dashed.
    Between an opportunity seized and an opportunity squandered.

    Of course we will continue to look at other means – international taxes, more resources direct to development banks, the IMF and the World Bank but the practical benefits of the IFF are:

    – we provide the support poor countries need immediately to invest in infrastructure, education and health systems, and economic development so they can benefit from access to our markets;
    – we provide grants to help ensure a sustainable exit from debt;
    – we make primary schooling for all not just a distant dream but a practical reality – meeting these needs and rights now and not deferring them to an uncertain future;
    – and we meet our global goals of cutting infant mortality and maternal mortality, eliminating malaria and TB and treating millions more people who are suffering from HIV/AIDS.

    I thank the Holy See and the growing number of countries who have indicated support for the IFF – including, of the G7, France and last week Italy.

    And let me give an example of what we can do today and now if we work together.

    Let me give an illustration of what – because of the IFF model – is already possible.

    The Global Alliance for Vaccines and Immunisation – who have immunised over the last five years not a few children but a total of 50 million children round the world – is interested in applying the principles of the IFF to the immunisation sector – donors making long term commitments that can be securitised in order to frontload the funding available to tackle disease.

    If, by these means, GAVI could increase the funding for its immunisation programme by an additional $4 billion over ten years, then it would be possible that their work could save the lives of an additional 5 million people between now and 2015.

    So in one fund, with one initiative, we can glimpse the possibilities open to us if we act together. If we could do the same for health, for schools, for debt, for the capacity to trade, for research and advance purchasing of drugs to cure malaria and HIV/AIDS, think of the better world we can achieve.

    So with next year – 2005 – the year of the UK’s G8 Presidency, the push for G8 progress starts now.

    You have set a challenge for 2005, with 2005 a make or break year for development, a moment of opportunity for development and debt relief, a challenge Tony Blair, Hilary Benn and I know we must, for the sake of the world’s poorest, not squander but must seize. An opportunity to make a breakthrough on debt relief and development, on tackling disease and on delivering the Doha development round on trade.

    We must rise to the challenge and we accept that we will be judged by what we achieve.

    So the task for Government now is to replace talk by action, initiatives by results and rise to the challenge – pledging to strive for urgent progress both on the priorities of finance for development and trade. And as you take forward your 2005 campaigns, I know you will hold us accountable as you have done so far, that you will challenge us, be the conscience of the world, be the voice that guides as at this crucial crossroads.

    Toni Morrison said that ‘courage is to recognise and identify evil but never fear or stand in awe of it’.

    And let that be our inspiration as we think of Africa.

    30,000 children will die needlessly today.
    If this happened in our country we would act now immediately together.
    We would indeed conclude it should never be allowed to happen anywhere.

    Yet today 30,000 children will die.
    Each child a unique personality.
    Each child precious.
    Each one loved, almost every one who could live if the medicines and treatments available here were available there.
    But each one of those 30,000 children will struggle for breath – and for life – and tragically and painfully lose that fight.

    And I know what you are thinking.
    If I could this day help one single child who might otherwise die live.
    If I could today and tonight prevent one avoidable death.
    If I could prevent a single child from needless suffering.
    If I could turn the despair of a mother worried about her child from desolation to hope
    Then it would make everything I do worthwhile.
    But if we could together by our actions help thousands, hundreds of thousands and millions.
    And if we could with all the power at our command, working together, collectively change the common sense of the age so that people saw that poverty was preventable, should be prevented and then had to be prevented, so that we met the Millennium development Goals not in 2150 but in 2015, then all else we do in our lives would pale into insignificance and every effort would be worth it.

    As Bono has said – It’s not enough to describe Everest. We have to climb it. And it’s not enough to picture the New Jerusalem. We must build it.

    But when people say debt relief, trade justice and finance for health and education is an impossible dream, I say:

    – people thought the original plans for the World Bank were the work of dreamers;
    – people thought that the Marshall Plan unattainable;
    – even in 1997 when we came to power people thought debt relief was an impossible aspiration and yet already with your support we are wiping out up to $100 billion dollars of debt;
    – people thought no more countries would sign up to a timetable for 0.7 per cent in Overseas Development Aid and yet year this year alone five countries have done so.

    So when the need is even more urgent and our responsibilities even more clear; and even when the path ahead difficult hard and long, let us not lose hope but have the courage in our shared resolve to find the will to act.

    Let us hear the words of Isaiah ‘Though you were wearied by the length of your way, you did not say it was hopeless – you found new life in your strength’.

    And let us answer with Isaiah also as our motto for 2005: that we shall indeed ‘renew our strength, rise up with wings as eagles, walk and not faint, run and not be weary’.

    A few weeks ago I cited a famous saying of more than one hundred years old – that the arc of the moral universe is long but it does bend towards justice.

    This was not an appeal to some iron law of history but to remind people that by our own actions we can and do change the world for good.

    And I believe that:

    – with the scale of the challenge revealed;
    – with the growth of public pressure you have started in Britain and in other countries;
    – and if there is a determination among world leaders to be bold;
    – building upon our moral sense, the arc of the moral universe while indeed long will bend towards justice in the months and years to come.

  • Gordon Brown – 2004 Speech to the Council on Foreign Relations

    Gordon Brown – 2004 Speech to the Council on Foreign Relations

    The speech made by Gordon Brown, the then Chancellor of the Exchequer, in New York on 17 December 2004.

    I would like to start by saying how delighted I am to be here.

    To be introduced by Robert Rubin – held in respect and admired in every continent for your outstanding leadership during and since your successful time of office as Treasury Secretary.

    And to be invited here to make our case at the Council on Foreign Relations about the forthcoming British G8 presidency is both humbling and challenging.

    For this is the forum – set up to help rebuild the international order after world war one, central to the 1944 and 1945 conferences for building that order after world war two – where out of the seeding of new ideas, the discussion of international events, so much that has been so good for the world has been initiated.

    And at the heart of the internationalism advanced by the Council, just as it is at the heart of the close and historic links between our two countries, the UK and the US – are our shared values:

    • our shared passion for liberty and democracy;
    • our fundamental beliefs: in opportunity for all, the work ethic and enterprise;
    • and our commitment to being open, outward looking and engaged with the world – not least our shared convictions that economic expansion through trade and free markets is the key to growth and prosperity.

    And let me start by acknowledging the debt the world owes to the United States for your leadership not just in the world economy but in the fight against international terrorism. And coming to New York three years after September 11th I am once again deeply impressed by the resilience and bravery in the face of tragedy. Indeed, America has shown by the actions of all its people that while buildings can be destroyed, values are indestructible; while lives have been put at risk, the cause of liberty never dies; and while hearts may be broken, your faith in the future is unbreakable.

    And in Iraq, Afghanistan and round the world I can assure you that Tony Blair and I are determined that this alliance endures, prospers and advances from strength to strength.

    And when the transatlantic economic relationship between Europe and America now accounts for up to $2.5 trillions of commercial transactions each year, including $500 billions of foreign trade, and provides employment to over 12 million people on both sides of the Atlantic, we must do more to break down the tariff and non tariff, regulatory, competition and financial services barriers to greater trade and investment between our two continents. And I repeat my proposal – more relevant than ever – a proposal born out of my experience as a Finance Minister – that European countries like Britain and the US and the NAFTA countries should meet in a regular economic forum to examine shared economic challenges.

    But this morning I want to discuss with you how as the US Presidency of the G7 of 2004 evolves into the British Presidency of 2005 we can work together to fashion a global alliance for peace and prosperity that starts from the shared needs, common interests and linked destinies of developed and developing worlds working together.

    And I have a quite specific set of proposals: that as poor countries reform and agree to continue reform, the richest countries must ensure that all countries in desperate need of sustainable debt relief receive it; that we complete as a matter of urgency the first trade round the world has ever seen that sets out to rebalance the trading system to take account of the interests of the developing world; and most of all that we consider an innovative proposal to tackle HIV/AIDS, TB and malaria, to give every child the chance of primary education and to double aid to halve poverty.

    Let me put my proposals in context:

    Just before the Iron Curtain descended over Europe in the late 1940s Prime Minister Churchill and President Roosevelt came forward with bold proposals for a strengthened Atlantic Alliance and looked ahead to a new era and – in their day and for their times — built a new world order.

    In that remarkable decade, visionaries here in America and round the world created:

    • the United Nations;
    • the World Bank and International Monetary Fund;
    • and then in a remarkable act of generosity – through the Marshall Plan – America transferred 1 per cent of national income to the war ravaged economies of Europe, recognising that prosperity like peace was indivisible; that prosperity to be sustained had to be shared.

    And that vision led to not only a new military and political settlement but a call for a new economic and social order that tackled, in their words, ‘hunger, poverty, desperation and chaos’.

    Like these visionaries of the post war era, we are today dealing with military, security and strategic challenges in a number of critical countries to which we must respond at a security and military level comprehensively with clear and defiant resolution but as Marshall did, also at an economic, social and cultural level.

    Like our predecessors we are seeing the need for an offer to the least developed countries – the most recent being the Monterrey consensus and in the USA the Millennium Challenge Account – what Marshall argued for: ‘to permit the emergence of political and social conditions in which free institutions can exist’ – and that such an offer can only succeed if it goes beyond compensation for poverty to dealing with its underlying causes, beyond temporary relief to wholesale economic development.

    And like them we see that any future global economic and social order must be grounded in responsibilities as well as rights. So like theirs our proposals also call on the poorest countries to rise to the challenge. And thus our vision of the way forward – akin to the 1940s challenge to rich and poor countries alike – is that only by each meeting their obligations for change all can benefit.

    And we recognize the differences.

    We understand that when what happens to the poorest citizen in the poorest country can directly affect the richest citizen in the richest country, the security threat we face is not an Iron Curtain which separates East from West but a blanket of fear – permanent, guerrilla war fought not by conventional armies or nation states but by cliques and factions of whose suicide bombers it is often said they cannot easily be deterred, they need succeed only once and they do not have to win in order for us to lose. I am more confident that by military and security measures and also by the far sightedness of our economic and social vision we can separate those extremists from the peoples they seek to exploit.

    But we also recognize that while the Marshall Plan was constructed in a post-war world of distinct national economies in need of rebuilding, our job now, in a more interdependent world – the world of globalisation – is to help build for a wholly different environment of open not sheltered economies, international not national capital markets, and global not local competition —– and to do so in a way that recognizes that the foundations of prosperity – the rule of law, transparency and accountability – need to be built by support in aid not as compensation for poverty but as investment in the building on modern economies.

    The answer is not to imply you have to choose between engaging in the global economy and addressing poverty, as if men and women of compassion should reject globalisation.  The answer is to advance globalisation and justice together with new policies for a new era of engagement.

    Now exactly five years ago in New York and in a historic declaration every world leader, every international body, almost every single country signed up to a shared commitment to right the greatest wrongs of our time.

    The promise that by 2015 every child would be at school – the right to education so everyone can help themselves.

    The promise that by 2015 avoidable infant deaths would be prevented – the right to a healthy life so all have the opportunity to make the most of their abilities.

    The promise that by 2015 poverty would be halved – the right to prosper so each and every individual can fulfil their potential.

    But already, so close to the start of our journey, we can see that our destination risks becoming out of reach, receding into the distance.

    At best on present progress in Sub Saharan Africa:

    Primary education for all will be delivered not in 2015 but 2130 – that is 115 years too late

    The halving of poverty not by 2015 but 2150 – that is 135 years too late

    And elimination of avoidable infant deaths not by 2015 but by 2165 – that is 150 years too late

    The world will not wait 150 years for promises made to be honoured.

    Recall the past promises:

    • the promise in 1970 that all developed countries would set aside 0.7 per cent of their national income for development aid;
    • the promise of primary education for all made in 1980 in Jomtien (Thailand) and re-affirmed in 2000 in Dakar (Senegal);
    • the promises at the World Summit for social development in 1995 on eliminating poverty;

    promises which all have one thing in common – they have all been broken.

    Martin Luther King spoke of the American constitution as a promissory note.

    And yet – for black Americans – the promise of equality for all had not been redeemed.

    He said that the cheque offering justice had been returned with ‘insufficient funds’ written on it.

    And in this way he exposed on racial equality the gap between promises and reality.

    And so too the Millennium Development Goals – a commitment backed by a timetable – are now being downgraded from a pledge to just a possibility to just words.

    Yet another promissory note, yet another cheque returned marked ‘insufficient funds’

    Now since 2000 some progress has been made.

    $70 billion of unpayable debt is being written off.

    At the 2002 Monterrey Financing for Development conference, donor countries pledged an additional $16 billion a year for development aid from 2006.

    Under President Bush’s leadership the United States have promised $5 billion a year by 2006 through its Millennium Challenge Fund – increasing US foreign aid by 50 per cent – and $500 million to promote HIV/AIDS prevention and provide antiretroviral therapy — in total more than tripling US investment globally in tackling HIV/AIDS since 2001.

    And five countries including the UK have this year committed to a timetable for raising development aid to the UN target of 0.7 per cent of national income.

    In addition, in the past decade in developing countries, primary school enrolments have increased at twice the rate of the 1980s.

    The proportion of those aged over 15 who can read has risen from 67 per cent to 74 per cent.

    Life expectancy has increased by from 53 years to 59 years.

    And the number of people living in extreme poverty has fallen by 10 per cent.

    But at the same time we face the challenge of a continent – Africa – where 30 countries still have an average life expectancy of less than 50.  Where 25 million people are infected with HIV/AIDS. Where in 24 countries one in every ten of children die before the age of one and the everyday story is of mothers struggling to save the life of their infant child and in doing so losing their own.  Where millions of children die unnecessarily each year.

    We cannot anymore blame these failures on a lack of science, medicine or knowledge. And we cannot blame our inaction on ideological division, that we have been frozen into action by a failure to agree. I cannot think of a time when there has been so much basic agreement between developed and developing counties on the role of markets and public investment; on the importance of trade, private investment and transparency in monetary and fiscal regimes — what you might call a new consensus.  Instead, what we need is greater political will.

    And the UK’s plan is this.  We need to make an offer as bold as the offer that was made in the Marshall Plan of the 1940s.  An offer that as developing countries pursue corruption-free policies for stability, implement their own poverty reduction plans and take forward the policies necessary to expand development, attract private investment, encourage entrepreneurship and reform trade at their own pace, the richest countries should offer:

    • to make a reality of our pledge to wipe out 100 per cent of debt that is unpayable;
    • to dismantle our trade barriers and finance, for the poorest countries, the building of capacity to trade and attract investment so they can take advantage of opportunities in our markets;
    • and to offer – in what Robert Rubin calls a ‘parallel agenda’ – the resources that are urgently needed to meet the Millennium Development Goals – an extra $50 billion a year.

    It is an offer made for security, economic and moral reasons.

    It is an offer that requires accountability and transparency from the poorest countries to justify development aid.

    It is an offer however whose generosity – an act of statesmanship – would illuminate the values we are defending and show the world that we, the richest countries are ready to march forward with the poorest countries under the banner of liberty, democracy and opportunity for all.

    And out of this I believe we could achieve not only a major assault on poverty in the poorest countries but pave the way, as the Marshall Plan and the Bretton Woods institutions did, for greater trade and higher and longer-term world economic growth benefiting us all.

    Let me outline the scale and significance of our proposals.

    Let us in 2005 make a historic offer that finally removes the burden of decades old debts that today prevent the poorest countries ever escaping poverty and leading their own economic development.

    In 1997 just one country was going to receive debt relief.

    Now 27 countries are benefiting with $70 billion of unpayable debt being written off.

    And it is because of debt relief in Uganda that 4 million more children now go to primary school.

    Because of debt relief in Tanzania that 31,000 new classrooms have been built, 18,000 new teachers recruited and the goal of primary education for all will be achieved by the end of 2005.

    Because of debt relief in Mozambique that half a million children are now being vaccinated against tetanus, whopping cough and diphtheria.
    And all achievements made without undermining creditor confidence.

    But when many developing countries are still choosing between servicing their debts and making the investments in health, education and infrastructure that would allow them to achieve the Millennium Development Goals, we have to recognise that while 100 per cent bilateral debt relief has wiped out half the debts of most poor countries, the process can only be completed – as US Treasury Secretary John Snow has suggested – with a bold act of offering 100 per cent multilateral debt relief, relief from the $80 billion of debt owed to the IMF, the World Bank and the African Development Bank, up to 80 per cent of the historic debt of some of the poorest countries.

    And instead of running down the resources the international financial institutions have available for development, I suggest that IMF debt write-off be financed by using IMF gold and that donor countries make a unique declaration that they will, on this occasion, repatriate their share of World Bank and African Development Bank debts owed by eligible developing countries. And to lead the process we the UK are prepared to assume responsibility for 10 per cent of all debts owed to the World Bank and the African Development Bank.

    But debt merely deals with the burdens of the past. It is not enough to break the vicious circle of debt, poverty and under-development, we must also build a virtuous circle of private investment, open trade and economic development.

    Less than 5 per cent of total flows of foreign direct investment go to the least developed countries – and only 1 per cent to the whole of Africa. Domestically generated savings and investment barely match foreign capital inflows – and the savings that do exist often leave the country in capital flight.  That is why country-owned poverty reduction strategies are rightly focusing on creating the right domestic conditions for private investment and commerce with the IMF, World Bank and nations like ours providing direct support to help create a stable economic environment, an educated and healthy workforce, improved infrastructure, encouragement for entrepreneurship, well functioning capital markets and sound legal processes that strengthen property rights and deter corruption.   We know now that who holds the raw materials is less important than who has the skills.  As President Bush has said:  ‘Africa is a continent that has got vast potential, and the United States wants to help the people of Africa realise that potential’.

    All of us here know that no country has moved from poverty to prosperity by cutting itself off from the international economy and without increasing its investment and trade.  We also know that reducing tariffs and achieving the ambitious pro-poor trade agreement promised at Doha could boost the world’s yearly income by over $500 billion.  And while developing countries could gain the most, all countries and regions stand to benefit.

    So 2005 must become the year when through the world trade talks, we release the poorest countries from unfair trade barriers.  But my proposals involve not just removing the barriers but a more positive encouragement of private investment and trade.

    First, it is time for the richest countries to agree to open our markets, remove trade-distorting subsidies and in particular, do more to tackle the scandal and waste of the European Common Agricultural Policy, showing we believe in free and fair trade.

    Second, it is time to move beyond the old consensus of the 1980s and recognise that while bringing down unjust tariffs and barriers can make a difference, developing countries must also be able to carefully design and sequence trade reform into their own poverty reduction strategies.

    And third, it is not enough to say ‘you’re on your own, simply compete’ we have to say ‘we will help you build the capacity you need to trade’ – not just opening the door but helping developing countries gain the strength to cross the threshold.  We have to recognise that they will need additional resources from the richest countries both to create the physical infrastructure and human capital to take advantage of trading opportunities – and to prevent their most vulnerable people from falling further into poverty.

    It is this last offer that could in my view unlock the stalled world trade talks and as we progress together – America and Europe – towards the next meeting in December 2005 in Hong Kong we must drive forward this agenda.

    But any discussion of debt relief and encouragement for trade leads to the third great challenge of 2005: that progress on debt relief and capacity building for trade side by side with Rubin’s ‘parallel agenda’ of investment in education, health and anti poverty programmes must also involve new resources – not aid as compensation for being poor but aid as investment in the future potential of the developing world, tackling the underlying causes of under-development.

    Making better use of existing aid – reordering priorities, untying aid and pooling funds internationally to release additional funds for the poorest countries – is essential to achieve both value for money and the improved outcomes we seek.

    But the brutal fact is that while ten years ago aid to Africa was $33 per person per year, today it is just $27

    All the public spending on education in Sub-Saharan Africa taken together is still, per pupil, under $50 a year, less than one dollar per week.

    And compared to $2000 a year in America, Sub-Saharan Africa still devotes only $12 per person per year to health – and only $3 per person per year comes from aid.

    So the fact is that as the problems of disease and poverty have grown, financial support has been reduced.  And the scale of the resources needed immediately to tackle disease, illiteracy and global poverty, far less to meet the ambitious Millennium Development Goals to which we are pledged, is far beyond what traditional funding can offer.

    That is why the UK Government as part of the financing package to reach the Millennium Development Goals has put forward its proposal for stable, predictable, long-term funds frontloaded to tackle today’s problems of poverty, disease and illiteracy through a new global finance facility.

    The International Finance Facility is in the tradition of the Marshall Plan.

    And it is modelled on the founding principles of the World Bank where nations provided resources to an international institution that then borrowed on the international capital markets.

    But it is a temporary facility to meet the needs of development from now to 2015.

    Let me explain how the IFF will work.

    The IFF will be founded upon the additional $16 billion a year already pledged from the richest countries like ourselves at Monterrey.

    Donors will make this additional funding a long-term pledge – over 30 years.

    And using these binding donor commitments as security, the IFF will leverage in additional money from the international capital markets to raise the amount of development aid for the years to 2015 by $50 billion a year – which will be repaid during the second half of the life of the facility through donor commitments

    Let us be clear the IFF is a temporary facility that involves no new bureaucracy.  The IFF would disburse development aid through grants and work through existing channels for delivering aid – indeed, current US commitments to the Millennium Challenge Account, for example, could be scaled up by the IFF structure before being disbursed in exactly the same way as planned today by the Millennium Challenge Corporation.

    And I believe the IFF has the following advantages – it allows us to tackle the causes of under-development not the symptoms; it allows us to ensure predictable funding where first aid is not at the expense of long term investment; and it allows us to frontload the flow of resources required to meet the Millennium Goals.

    First, the IFF would provide a predictable flow of aid to developing countries so they no longer have to suffer from an up to 40 per cent variance in the amount of aid they receive from year to year which itself prevents them from investing efficiently in health and education systems for the long term and tackling the causes of poverty rather than just the symptoms.

    Too often in the last 50 years we have seen development funding as short term charity aid, charity for being poor, instead of for a higher and more substantial purpose – long term investment tied to tackling the underlying roots of poverty and promoting sustainable growth.  That is why the development funding I propose today through the IFF is specifically designed to generate the public investment needed to create the best environment to boost private investment and trade by increasing funds for health and education – not typically areas in which private capital flows but areas in which public investment is necessary to create an environment in which private commerce can flourish.

    Second, the IFF would create the scale of funding necessary to invest simultaneously across sectors – in education and health, trade capacity and economic development – so that instead of having to choose between urgent emergency disaster relief and long term investment the impact of extra resources in one area reinforces what is being done in others and has a lasting effect.

    For the fact is that no one area can be seen in isolation from another:

    • every year of additional schooling that a mother has reduces her child’s chances of dying by up to 10 per cent so if we cannot invest in education we cannot succeed in tackling diseases like HIV/AIDS, TB and malaria;
    • teachers in dozens of countries are dying of HIV/AIDS faster than they can be trained so if we cannot tackle ill-health we cannot solve our problems in education;
    • 90 per cent of diarrhoeal disease is caused by poor water so if we cannot invest in sanitation we cannot succeed in public health;
    • investment in transport and telecommunications are essential if developing countries are to reap the benefits of access to our markets so if we cannot invest in infrastructure we cannot succeed in stimulating economic development;
    • and because every dollar no longer required in repayment to meet the burden of unpayable debt can be money spent on education and health, if we cannot continue to secure debt relief we cannot succeed in education and health.

    So to rise to the scale of the challenge we need a financing vehicle through which we make possible the funds for – and then the realisation of our goals for – education, health, AIDS, economic development, debt relief and trade, all together at the same time.

    Third, the IFF is designed to be a fiscally neutral means of scaling up development aid between now and 2015, bringing forward in time the value of the commitments already made at the Monterrey conference and enabling us to frontload aid so a critical mass can be deployed as investment now over the next few years when it will have the most impact in achieving the Millennium Goals.

    We know that by spending now in many areas we can not only save lives earlier but also reduce costs for the longer term.

    Take HIV/AIDS for example – which will be a priority of the international finance facility.

    Research shows that for every year we bring forward the discovery of an AIDS vaccine we could save 2 million lives that would otherwise be lost. So if we increased investment in AIDS research now and used it to find a vaccine – and then eventually to finance a jointly agreed advance purchase scheme to make the vaccine accessible to Africa at an affordable price – then we can not only save lives earlier but also reduce the costs of treating those with HIV/AIDS in the medium and longer term by up to $2 billion a year.

    I also see an enormous opportunity for pushing forward the initiative to create a worldwide infrastructure – or platform – for sharing and coordinating research in AIDS, and then for encouraging the development of viable drugs. But it is generally recognised that the sums of money required involve at least a doubling of research money for AIDS.

    The generation that – by their generosity and far sightedness – advanced a cure to prevent HIV/AIDS would truly merit the title ‘the greatest generation’.

    In the last 50 years the Marshall Plan’s European model could not be applied wholesale to developing countries because in many poor countries neither the economic foundations nor the necessary open, transparent and accountable systems for managing the public sector were properly in place to absorb aid and prevent corruption and waste.   And the proposal I am making today will work only if we see development assistance in this light:  with the multi-national pooling of budgets and the proper monitoring of their use to achieve the greatest cost effectiveness of new aid; untying aid so maximising its efficiency in diminishing poverty; more effective in-country use of funds to help countries invest and compete; and development funding focused on results and based on developing countries pursuing agreed goals for social and economic development including tackling corruption.

    And let me give an illustration of what – because of the IFF model – could already possible.

    The Global Alliance for Vaccines and Immunisation (GAVI) – which is funded by the Gates Foundation and governments and has immunised over the last five years not a few children but a total of 50 million children round the world – is interested in applying the principles of the IFF to the immunisation sector – donors making long term commitments that can be securitised in order to frontload the funding available to prevent disease.

    If, by these means – through the pilot we are developing with them – GAVI could increase the funding for its immunisation programme by an additional $4 billion over ten years, then it would be possible that their work could save the lives between now and 2015 of an additional 5 million people.

    So in one fund, with one initiative, we can glimpse the possibilities open to us if we act together.  If we could make the same offer for health, for schools, for debt, for the capacity to trade, for research and advance purchasing of drugs to cure malaria and HIV/AIDS, think of the changed world and the changed view of the developed countries in the developing countries.

    Marshall’s Plan in the 1940s was investment for a purpose – for a Europe rebuilt.  He summoned forth a new alliance for prosperity between rich and poor countries that, for his time, played a vital part in winning the peace.

    So today – summoning up the spirit of Marshall – the new offer I suggest for developing countries is aid as public investment for a purpose, so that they can play their part in a stable, peaceful world.

    And by each meeting their obligations for change all can benefit.

    First, the obligations on developing countries: to end corruption, put in place stable economic policies, encourage private investment, meet their commitment to community ownership of their poverty reduction strategies and ensure resources go to fighting poverty.

    Second, the obligations on business to engage with the development challenge and not to walk away, becoming long term partners in growth and development.

    Third, the obligations on international institutions – to reform systems to ensure greater transparency and openness, and to focus on priorities that meet the international development targets.

    Fourth, the obligations on the richest nations to the poorest of the world – to curb our protectionism, to fulfil our commitments and to help release the potential of the developing world through a substantial and decisive transfer of resources. Not aid that entrenches dependency but investment that empowers self sufficiency – investment money that is, in the truest sense of the word, freeing the poorest countries to find their way forward.

    Here in the Council on Foreign Relations you have for over almost a century addressed the great challenges of our times.

    Your origins were the search for a new post First World War world order – and your contribution was to demand security with justice.

    Then in the 1940s you planned and discussed the policies that led to the Bretton Woods conference and the Marshall Plan – and your contribution was to demand far sighted acts of statesmanship.

    Now here in New York and after September 11th, President Bush, your Government, your armed forces and your people have led a great and global effort worthy of America’s history and its ideals: working together with steadfast resolve both to win the war against terrorism and to make an offer to developing countries that rises to the health, education, poverty and economic challenges all have to meet.

    The words of one great poet sum up what we must now do:

    “The future has many names
    For the weak it is unattainable
    For the fearful it is unknown
    For the bold it is opportunity”

    Let it be our generation that shows those who suffer in the bleakest places of the world that we can light a candle of hope which, radiating outwards, can cut through the darkness and shame of injustice and emblazon across the world – for all people everywhere to see and believe – a message of confidence and faith in the future.

    Let it be our generation that – with practical and bold resolution – takes up the challenge and discharges our duty to remove the scar of poverty and hopelessness from the world’s soul.

  • Gordon Brown – 2004 Speech at the National Council for Voluntary Organisations Annual Conference

    Gordon Brown – 2004 Speech at the National Council for Voluntary Organisations Annual Conference

    The speech made by Gordon Brown, the then Chancellor of the Exchequer, on 18 February 2004.

    CIVIC RENEWAL IN BRITAIN

    Let me start by thanking you and the organisations you represent – not just for your kind invitation to speak to you at this annual meeting of the National Council of Voluntary Organisations this morning, but to thank you for the work you do, the service you give, the dedication you show, the energy you bring and the extraordinarily breadth and depth of what you undertake. From mentoring to Sure Start, from preventing teenage suicide to helping a new generation of old people, from rehabilitating offenders to inspiring the New Deal – service which makes you uniquely both a safety net where others fail and a growing third sector of our economy valued for your ingenuity and independence.

    And, as new figures show, with more voluntary organisations at work for our communities today than ever before – more than 150,000 registered charities, 200,000 non-charitable voluntary and community organisations, around 400,000 in total, one for every hundred of the adult population – Britain has an estimated 16 million people who do some kind of voluntary work – and in 2001 39 per cent of adults gave of their time to help others at least once in the year.

    And over the last decade, from a time when you were much smaller, when there was no compact, when your professionalism was not properly recognised as it should be, we have witnessed what I believe – and what I hope the new Charity Bill will reflect – is your transformation as a third sector ready to rival market and state, with a quiet revolution in how voluntary action and charitable work serves the community:

    • New ways of working – using I.T, the internet, digital television and mobile phone technology to gather information and communicate with the people who need help and support the most;
    • New entrepreneurship – earning more money to support what you do from selling goods and services – as highlighted in your report published today;
    • New partnerships – for the first time you have led in the design of a major new government programme – Futurebuilders – working with the Chief Secretary to the Treasury, Paul Boateng, to create a fund that I hope will prove far more challenging, more exciting and more fulfilling.

    And I praise you for your new ways of achieving enduring aims – serving the people of our country.

    And at the heart of all these changes has been the NCVO – and I thank you and your Chief Executive, office-bearers and staff.

    You are a constant in a world of change.  And yet a force at all times for new ideas.

    So my theme today is that of new challenges, new responses – civic renewal flourishing in a changing Britain.

    I know that a recent survey suggested the amount of time spent in Britain on unpaid activities fell from 2.3 billion hours in 1995 to 1.6 billion hours five years later – a drop of more than 30 per cent.  So some suggested we have a caring deficit.

    But in fact when a recent Mori poll showed that 59 per cent of 15 to 24 year olds want to know more about how to get involved in their communities. I believe we have a goodwill mountain just waiting to be tapped.

    I want today to set out why I believe in the independence and strength of a thriving voluntary and community sector in Britain both now and in the future – a strength and independence that we all should and do value. And in setting out my views I want to discuss with you how for the future we can help strengthen that independence and vitality by complementing the measures we are taking and will continue to take to incentivise the giving of money with measures to incentivise the giving of time.

    And I want to consult with you on proposals that both the Home Secretary – David Blunkett – and I feel strongly about:

    • First, how we can do more to make possible the giving of time by volunteers – in particular, by consulting with you on national framework of community service for young people to deliver a step change in the participation of young people in volunteering activity;
    • Second, how we can help young and older people fulfil their potential by expanding and extending the scope of mentoring – where there is both great need because we are a more atomised society and great potential because it is a relatively underdeveloped area – using modern means of communication to provide access to help, advice, information and guidance;
    • And thirdly, we want to suggest how business as well as individuals can be more involved in volunteering and mentoring activity.

    But before I set out these proposals I want to explain why David Blunkett and I place such importance on the existence of a thriving voluntary and community sector.

    Now,  the community I grew up – even though it was one made famous as the birthplace of the theorist of the free market Adam Smith – revolved not around only around the home but the church, the youth club, the rugby team, the local tennis club, the scouts and boys brigades, the Royal National Lifeboat Institution, the St Johns and St Andrews Ambulance Society…community not in any sense as some forced coming together, some sentimental togetherness for the sake of appearances, but out of a largely unquestioned conviction that we could learn from each other and call on each other in times of need, that we owed obligations to each other because our neighbours were part also of what we all were:  the idea of neighbourliness woven into the way we led our lives.

    And while some people say you have only yourself or your family, I saw every day how individuals were encouraged and strengthened, made to feel they belonged and in turn contributed as part of a intricate local network of trust, recognition and obligation encompassing family, friends, school, church, hundreds of local associations and voluntary organisations.

    And while it is easy to romanticise about a Britain now gone, I believe that there is indeed a golden thread which runs through British history not just of the individual standing firm against tyranny but also of common endeavour in villages, towns and cities – men and women with shared needs and common purposes, united by a strong sense of duty and a stronger sense of fair play.

    And their efforts together produced not just a rich tradition of voluntary organisations, local democracy and civic life but also a uniquely British settlement that, from generation to generation, has balanced the rights and responsibilities of individuals, communities and state.

    The British way has always been much more than self interested individualism.  And this was always recognised, even by those philosophers associated with free market ideas like Adam Smith and Samuel Smiles.   They knew that prosperity and improvement must be founded on something more and something greater than harsh organised selfishness: instead a sense of social obligation – often infused with religious values – and a broad moral commitment to civic improvement.

    And while it is true that voluntary organisations have risen and fallen over time, it is also true that, in our own time, new organisations from playgroups and mothers and toddlers groups to pensioners or third age groups and the hospice movement have grown to become vital threads in our national fabric.

    And this is my idea of Britain today ….not the individual on his or her own living in isolation sufficient unto himself but the individual at home and at ease in society. And in this vision of society there is a sense of belonging that expands outwards as we grow from family to friends and neighbourhood; a sense of belonging that then ripples outwards again from work, school, church and community and eventually outwards to far beyond our home town and region to define our nation and country as a society.

    Britain – because there is such a thing as society – as a community of communities. Tens of thousands of local neighbourhood civic associations, unions, charities, voluntary organisations.  Each one unique and each one very special, not inward looking or exclusive. A Britain energised by a million centres of neighbourliness and compassion that together embody that very British idea – civic society.

    It is an idea that best defines a Britain that has always rejected absolutism and crude selfish individualism and always wanted to expand that space between state and markets.

    But it is not a sentimental attempt to hark back to the past nor a rejection of modernity but its practical fulfilment – a Britain where social change redefines community but does not abolish community.

    And it is an idea that Rabbi Jonathan Sacks captures best and most eloquently when he talks of British society, not in terms of a contract between people that defines our rights but a British covenant that sets out the shared values which can inspire us to neighbourliness and service to others.

    And today civic society finds its greatest embodiment in the strength of your voluntary organisations – a genuine third sector established not for self or for profit but for mutual aid and, most often, to provide help and support for those in need.

    We know from the theory and evidence on what is called “social capital” that societies with strong voluntary sectors and civic society institutions have lower crime, greater social cohesion and better performing economies than those without. But we in government should be honest and humble, recognising that even as you play a vital role in delivering services because you are better than anyone at doing so, it is your independence that is the source of your strength. And let me explain why not just you but I, from not just history but every day, on-the-ground experience of living in Britain, believe that to be the case.

    For it is true that the uniqueness of voluntary and community organisations has not always been recognised by government.  In the past let us be honest that some on the left wrongly saw the voluntary sector as a threat to the things that they believed only government should be doing; while others on the right misused the goodwill of a caring voluntary sector as an excuse to relieve government of its proper responsibilities.

    Both, failing to recognise the uniqueness and richness of the third sector, had it completely wrong. And yet unfortunately as the political battle swung back and forth, voluntary organisations were too often caught in the middle.

    I hope the political establishment has learnt from these mistakes, from the conflicts and sterile battles for territory of the past.  The voluntary sector must never be seen as a cut-price alternative to statutory provision, never seen as a way of ducking the responsibilities of families or society.  Nor should it be seen as a second class alternative to state provision.  For it is now recognised that even when the public interest is established it is often better for it not to be guaranteed by a public sector organisation but by those, quite simply, who on the ground can advance the public interest better.  That is why today – with for example Sure Start – local voluntary organisations with their unique local knowledge not only provide the service but run many of the projects.

    And governments should have the humility to recognise that voluntary organisations can provide solutions that governments cannot offer.  That instead of – if I might put it this way – the man from Whitehall always knowing best, it is the woman from the WRVS or sure start or community service volunteers or any of the NCVO organisations that knows better.  And it is because your independence as a voluntary sector is the essence of your existence, the reason you can serve, the explanation of why you can be so innovative, that you can make the difference that others cannot.

    So I believe, with you, that the great strength of voluntary action – and why we should value your independence – is your capacity for the individual and unique rather than the impersonal or standardised approach.  Your emphasis on the individual need, aspiration and potential – and on a one to one, person to person approach, on being at the front line.  As has so often been said, you do not rebuild communities from the top down.  You can only rebuild one family, one street, one neighbourhood at a time.  Or as faith based organisations, who are so important, often put it  – one soul at a time. As one Jewish saying puts it:  “if you have saved one life, you are saving the world”.

    And voluntary action, while often conducted through national organisations is, characteristically, local; volunteers and local community workers, working on the ground, at the coal face, at the heart of local communities, far better positioned than ever a government official could be, both to see a problem and to define effective action.  It is about being there.

    John Dilulio – former head of the White House Office of Faith-based and Community Initiatives – quotes a conversation between Eugene Rivers, a minister in Boston, worried about his hold on a new generation of young people and a local youth who has not only become a drug dealer but has a greater hold now over the young people.  “Why did we lose you?” asks the minister to the drug dealer.  “Why are we losing other kids now?” to which the drug dealer replies:    “I’m there, you’re not.  When the kids go to school, I’m there, you’re not.  When the boy goes for a loaf of bread … Or just someone older to talk to or feel safe and strong around, I’m there, you’re not.  I’m there, you’re not…”

    In the face of drugs, crime, vandalism, social breakdown, voluntary and community organisations – there on the ground, one to one, person to person – really do matter and make the difference that others cannot.

    And so too does the second great strength of voluntary action – and why David Blunkett and I are putting forward the proposals we do today – your freedom to innovate. Long before government took notice, voluntary organisations saw wrongs that had to be righted. Indeed, it is because you innovate that societies most often change. And – often more so than the state – voluntary organisations can be flexible, can pilot, can experiment, can try things out, and can more easily move on.

    And just as you did in the past with, for example, the settlement movement or the new campaigning organisations which sprung up in the 1960s, today you are pioneering in new directions:  from the hospice movement to anti-AIDS campaigns, from environmental groups to the Playgroup movement, from advocates for disabled people to the global coalition against the debt burden of developing countries.

    Volunteering

    Now, since 1997 – and working with David Blunkett and others – I have tried to encourage the giving of money:

    • The more simplified Gift Aid scheme which makes it easier to give;
    • Improving Payroll Giving by removing the limit on donations, introducing and then extending the ten per cent Government supplement and promoting the scheme to employers – which has led to a near trebling of Payroll Giving in the last four years;
    • Putting in place new tax incentives to encourage charitable foundations, which are common in the USA, to establish themselves here;
    • And with the changes in what qualifies for tax relief for individual and corporate giving, incentives are now worth £2.2 billion a year — and I encourage any charity here today who does not ask its members to “Gift Aid” their donations to do so to get the additional benefits.

    I will not ignore your representations on incentives for giving money – and indeed I know you will continue to make them to me – but now is the moment also to do more to encourage the giving of time – for we all know that we need, in this generation, to encourage young volunteers, new volunteers, new kinds of volunteers and in doing so to create new volunteering opportunities, and together encourage networks that match those who can give help to those who need help.

    Again we have tried to work with you on key initiatives, not trying to set the direction but enabling you, often with seed-corn finance, to build the infrastructure of caring you need:

    • The internet-based database – www.do-it.org.uk – providing individuals with free and direct access to volunteering opportunities throughout Britain;
    • Timebank – which since its launch in 2000 has matched over 50,000 people to volunteering opportunities in their local communities;
    • Community service volunteers – with more than 40 years experience in providing high quality volunteering opportunities;
    • And Millennium Volunteers – which to date has signed up 120,000 young people.

    So a lot has been done.

    But we also know that many still don’t know how to volunteer, where to go, who to ask for help.

    Many don’t understand that you can give some of your time without giving all of your time.

    And many – particularly young people – find formal volunteering complicated and confusing.

    And so I believe we must look at new and innovative ways of helping. In the US some firms give their employees a week off for voluntary work. In other places, the expenses of volunteers are paid, and in some places the tax system works to make things easier.  But often it is not about financial incentives to volunteer, but about making the connections so that those who need help can link up with those who want to help.

    And I can tell you today that the Home Secretary, the Culture Secretary, the Education Secretary and I will report in the Budget on what more we can do to help all those prepared to undertake some sort of voluntary activity.

    And we want to examine with you – as the Scottish Executive has been doing – how we can do more to encourage a call to service among young people.

    In the 1960s in America, President Kennedy instigated the Peace Corps – asking young American men and women to volunteer overseas to, in the President’s words, further the cause of “world peace and human progress”.  And President Clinton and then President Bush have fostered sister programmes – Americorps and Freedom Corps – to enable young people to serve their country at home.   And I can tell you that such is the success of Americorps that more young people have joined it in just ten years than have joined the Peace Corps in its full 40-year history.

    And, with Home Office Minister Fiona McTaggart, I met with the heads of Freedom Corps and young people involved in Americorps last week to hear how young people engaged in national community service in America are working across racial and regional lines to build a stronger national community: and they have constructed tens of thousands of homes, immunised hundreds of thousands of children against disease, and taught millions to read – finding the skills and experience they gain from their service invaluable for themselves and their future employability.

    And I was struck not only by the enthusiasm shown by the young people for the whole range of volunteering opportunities they were involved in but by their belief that if it is to become the norm rather than the exception for all young people to give up their time to help in their communities or abroad. We have to make the volunteering opportunities on offer both interesting and exciting – and we need to make access to them easier.

    David Blunkett and I believe that the same call to service should be issued to all young people in Britain.

    In the Budget last year David Blunkett, Charles Clarke and I announced a pilot for England where, for school-leavers who cannot afford to do so from their own funds, we sponsor a Gap Year – a year of service in their own communities.   And the first 60 volunteers started on the programme in September.

    Now we want to examine with you and with young people themselves whether we can, through making it a national priority, engage a new generation of young people in serving their communities – and provide nationally and locally the means by which they find it easy to participate. And I would like to invite all the organisations represented here today – individually and through the NCVO – to work with government on how best we can do more.

    The advantages for young people are clear – to develop their personal skills, discover new communities, become more active citizens.  The benefits to our country are clear too: to expand volunteering, to create a culture of service and to support worthwhile community activity. And as in America there could be help with basic living expenses and help for university, college or business start ups to follow.

    We know that the best way to do this is by working with the organisations – many of you here today – that are already doing this sort of work successfully and by listening to young people.  And building on our pilots – and learning from experiences in the us and elsewhere – the Government wants to explore, in direct partnership with the you, the voluntary and community sector and with young people themselves – how we can do more.

    Mentoring

    Second, I turn to initiatives to encourage mentoring.

    The central element of mentoring is a long-term, personal, one-to-one relationship in which, over time, the experience and knowledge of one person helps another to learn and to grow.

    It is an approach that is being adopted everywhere from schools to the career service to the workplace, and for everyone from looked-after children, to new entrepreneurs, to the long-term unemployed, and from gifted children to under-achievers.

    You might say mentoring is about befriending; about people helping people and people needing people to make the most of themselves and be all they can be – bridging the gap between what they are and what they have it in themselves to become.  Giving advice and help on everything from school courses to careers in music or businesses to very personal advice on growing up. And while adult mentors are most common, a young person will often benefit from having another young person as a mentor, especially one who shares similar life experiences. And that young person often will go on to mentor someone else.  It is a rare form of volunteering – one that generates its own recruits.

    In one programme for young people at risk in the United States, those befriended or mentored were 46 per cent less likely than others to use drugs and 27 per cent less likely to use alcohol.  They were also less likely to get into fights or to be truant from school. On a smaller scale, we are seeing similar encouraging results in Britain:  “chance UK” a child mentoring scheme, has found that three quarters of mothers interviewed saw positive changes in their child’s behaviour; four out of five regarded their child’s mentor as a good influence; and over two thirds reported benefits for their own relationship with their child.

    For the one third of schools still with no mentoring, new programmes are being sponsored by both the Home Office and the Department for Education.

    We have introduced mentoring fund grants to help mentoring organisations expand their activities into communities that are not yet being reached.

    And mentoring is also an important component in the Connexions service – the new careers and guidance service for 13 to 19 year olds – with young people acting as peer mentors and role models for other young people.

    But there is much room for growth, much more to be done.

    I wonder, for instance, whether – whilst taking consideration of child safety issues – we could not explore more innovative ways of recruiting people to be mentors and of course helping people in need of help.

    Just look at the success, for example, of the big websites such as ebay, Friends Reunited (with 8.5 million members alone), u.date – using the power of IT to create social networks, connections and affiliations.  Or the superb site www.mentoring.org in the US – a modern and accessible national infrastructure for local mentoring organisations.

    With the voluntary sector’s well-deserved reputation for creative thinking and for innovation, I believe there are opportunities

    – through involving business
    – though better local organisation
    – through national appeals including through TV and the Internet

    to recruit and train mentors and to link those who need help and advice to those who can help and advise.

    We as a Government stand ready to provide seed corn funds to do more to help build both a national and local infrastructure that offers mentoring opportunities and help in every area of the country. And i can tell you that David Blunkett and I will be calling a summit of organisations and businesses involved in mentoring to discuss how we can do this.

    Business engagement

    And this leads to the third area where I want to make new suggestions – how we work together to translate the widespread social concern that exists among employers and employees alike into effective action for the common good.

    While there are already good examples here in the UK – Business in the Community, Pro-help, Business Action on Homelessness, Business Broker pilots, Right to Read, Business Bridge, Streetwatch, Business Cares – generally people in the UK think business does more than providing the 7 percent of volunteers and 5 percent of income to charities that it does. And we know that corporate giving of money and time has reached new heights in the US – and in new ways through organisations like ‘Business Strengthening America’.

    There is indeed a goodwill mountain waiting to be tapped.  So building on the new Corporate Challenge that you have been involved in – where more than 60 companies have already nominated champions – David and I want to work with you and them to develop a national campaign to promote involvement by companies and employees in mentoring.  And I hope you will work with us in a group David and I propose to bring together to explore options and recommend next steps.

    Public Service Delivery

    I am conscious that when we talk of public service delivery we have a further responsibility – not just to ensure voluntary organisations can help – as they have done successfully with sure start – to shape the services they run, but to build upon what I felt was a ground breaking 2002 Cross Cutting Review on the role of the voluntary and community sector in service delivery – which, I can say, helped us in government – right across departments – understand much better the issues which voluntary sector organisations face in public service delivery.

    And when you identified a fundamental problem – basic capacity needs in it, sustainable funding, financial management and skills, and the need for an ‘infrastructure map’, as Stewart puts it, we tried to respond.  And from this summer, grants and loans will be available through the Futurebuilders fund to help build capability and I can tell you that recognising that there are skill shortages in management and business planning, David Blunkett is also finalising work with you on a new capacity and infrastructure framework including funding to help improve skills, use of it, performance management and governance in the sector.  And I hope that as we discuss all the new challenges ahead, the same spirit and practice of partnership will flourish to the benefit of all.

    Conclusion

    My late father always said that each of us could make a difference.  We could all leave in his words, “our mark for good or for ill”.

    He said that it was not IQ or intelligence or, for that matter, money that defined whether you made the best mark in your society.

    He believed in Martin Luther King’s words, that everybody could be great because everyone can serve.

    So I certainly grew up influenced by the idea that one individual, however young, small, poor or weak, could make a difference.

    Robert Kennedy put it best: “Let no one be discouraged by the belief there is nothing one man, one woman can do against the enormous army of the world’s ills…against misery and ignorance, injustice and violence” he said.  “Few will have the greatness to bend history itself but each of us can work to change a small portion of events and in the total of all these acts will be written the history of this generation”.

    Together, your organisations are ensuring not only that service remains an honourable tradition in Britain but that as

    old person helps young person;
    young helps old;
    neighbour helps neighbour;
    mentor helps mentored;
    business helps community;
    And voluntary organisations help, enable and empower individuals;
    Service can make us a stronger, more caring, more resilient society.

    A Britain with a strong and independent and forward looking voluntary and community sector…a Britain true to its values… a Britain ready to face the future.

  • Gordon Brown – 2004 Speech at the British Chambers of Commerce Annual Conference

    Gordon Brown – 2004 Speech at the British Chambers of Commerce Annual Conference

    The speech made by Gordon Brown, the then Chancellor of the Exchequer, on 21 April 2004.

    Can I say what a pleasure it is to be at this annual meeting of the Chambers of Commerce:

    • to have the opportunity to thank all of you – representatives of, and speaking for, more than 135,000 businesses from every city, every town, every region of our country – for the work you do and the service you give championing the cause of business – and for what you achieve for British enterprise and for Britain;
    • and to congratulate your President Isabella Moore and your Chief Executive and staff for the work you do regionally, nationally and internationally to make the voice of the British Chambers of Commerce count for Britain.

    And let me say what I firmly believe: that the whole country owes you a debt of gratitude for the way, particularly throughout the world downturn of the last few years, you have been meeting the new challenges – demonstrating your resilience, your fresh thinking, your courage to respond and change – with Britain today, through your efforts and that of the British people, seeing 3,000 new businesses starting up each week and 25,000 men and women finding new jobs every day, with an additional 10,000 new vacancies being advertised.

    Modern Britain was built by men and women of commerce and business; by men and women demonstrating entrepreneurial flair; men and women of commerce showing the best of practical skills committed to a vision of British manufacturing and commercial strength; men and women who were not cynics, who never talked our country down but were – and are – confident, forward looking optimists dedicated to the future well-being and economic destiny of Great Britain.

    The nations that will succeed amidst ever more intensive global competition not least from a rising China and India, will be those that are sufficiently confident and forward looking to entrench stability, to celebrate enterprise, to make long term investments in science and skills and be outward looking rather than protectionist. And I want to suggest to you today that at this moment of opportunity when the world economy starts to grow again, Britain’s great strengths – as the country with traditions of stability deeper than almost any other industrial economy, with traditions of scientific inventiveness longer than any other, and with a global reach than has been wider than almost any other – make us well equipped, as long as we make the right long term decisions on stability, science, skills and enterprise, to be one of the great success stories of the global age.

    Now Madam President: of all the economic duties of government the greatest and pre-eminent challenge is the creation and entrenchment of economic stability and taking the hard decisions to lock stability in, even in difficult times in the world economy.

    Let us remind each other of Britain’s chronic post war history of stop-go, inflation, short-termism, under-investment and higher unemployment and the damage it did to good hard working businessmen and women. And only recently in the last world downturn in the early 1990s when – as a result of allowing the economy to run out of control – the British people and British business suffered 10 per cent inflation, 15 per cent interest rates, 1.5 million people in negative equity, 250,000 homes repossessed and 1 million more out of work

    This was the old stop-go Britain: an instability that meant with 10 per cent interest rates or more for a whole four year period, businesses like yours could not invest with confidence; with interest rates charges so high and prospects so uncertain many with talent and initiative found it too costly and risky to start up businesses; even the most successful businesses could not make long term plans as everyone expected inflation to recur – and we must never repeat those mistakes again.

    Now, by working together, we can see a Britain that has a new found and hard won stability with: the lowest inflation for thirty years; and the lowest interest rates for forty years; the lowest unemployment for a generation; and a Britain that is seen today as the most stable of all the major economies.

    And it is important we understand how and why it is Britain – once the most stop go of economies – which has avoided the recessions that hit America, Germany, Japan, Italy and most other industrial economies during the world downturn of the last few years and has enjoyed sustained and sustainable growth.

    So let me just explain the long term difficult decisions that had to be made and what I know we must also do to entrench that stability for the future.

    When we came into power – and having understood the damage that stop go instability had done to your businesses and having talked widely with people like Alan Greenspan and others whom I respected round the world – I decided to break decisively with the old short termism that had brought stop go and so in our first day in office we removed the politicians’ power to make interest rate decisions.

    But the changes we made were not just the right one – opposed by other parties – of making Bank of England independent.
    Even more important we put in place a wholly new long term fiscal and monetary discipline and framework which some now refer to as the ‘British Model’ for monetary and fiscal stability:

    • a symmetrical inflation target – now just 2 per cent – which is – important to how we responded to the world downturn – as worried about deflation as inflation;
    • fiscal rules set not just for one year but for the whole economic cycle;
    • and a new fiscal discipline founded on a radical reduction of the national debt;
    • and having tightened fiscal policy radically by over 4 per cent of GDP and sold off assets including spectrum – paying off more debt in one year than all the debt paid off in the whole of the last fifty years taken together – we cut debt from 44 per cent of GDP to one third;
    • and having cut debt dramatically, we reduced our debt interest payments – which with social security had taken up half of all additional public spending ten years before – to less than 2 per cent of GDP, lower than at any time since the first world war.

    And in contrast with the experience of other economies hit by recession, the credibility that has come from independence for the Bank of England, the symmetric target, the reduction of debt and debt interest and the new fiscal rules – the British Model we have created – has enabled the Monetary Policy Committee to respond early and decisively – raising interest rates in 1997, cutting them sharply in 1998 and again with nine interest rate cuts during the global downturn, and now in the last six months acting pre-emptively with interest rate changes on two occasions – with the result that, even when more exposed than many other European economies to the IT shock, growth has continued and continues at a sustainable level.  And each year since 1997 low inflation – barely achieved by previous governments – has been achieved and our inflation target met each year and every year.

    So instead of being – as in the old days – first in, worst hit and last out of any world downturn, Britain has not only avoided recession but has continued to grow in quarter after quarter, year after year, in all seven years of our government since 1997.

    Indeed, Britain has now enjoyed the longest period of growth for over 200 years.

    And now that the world economy is strengthening, growth is also becoming more balanced with business investment, manufacturing output and exports rising now – and expected to continue to rise this year and next.  And as a result and because the New Deal has, at your suggestion, insisted on the obligations of the unemployed as well as on the opportunities, the numbers of people in work have risen by 1.8 million since 1997. Indeed, this year there are for the first time actually more than 30 million workforce jobs – 30.3 million in December 2003 – a rise of 2.42 million since 1997.  And while – as you know – jobs have risen and fallen in a number of areas, you will be interested to know that jobs in construction are up by 345,000; jobs in finance and business services up by 965,000; transport and communications up by 187,000; and distribution and hotels up by 540,000.

    So let me be clear: but for the new British Model which other countries are now examining, Britain would have run the same old recessionary risks.

    And I can tell you that such is my determination to lock in that stability that looking forward, vigilant to the global economic cycle, we can and will take nothing for granted.

    And it will be the same forward looking monetary action – backed by our sound fiscal policy – that can, if we continue to make the right decisions and stick to our resolve, lock in greater stability not just for a year, or for an economic cycle, but in this generation —– a prize of greater stability that has eluded successive governments of all parties in the post war era; a prize that – with resolve and prudence – is now within our grasp.

    While we will always be vigilant to the risks, growth in 2004 which is expected to be – even after three years of flat growth – just over 1.5 per cent in France, Germany and the euro area, will be between three and three and a half per cent in Britain with, of the G7 countries, Britain and America again growing fastest.  And I am pleased that forecasting organisations which doubted us last year and then doubted us again this year are now accepting – as the IMF has done today –  that growth will be higher than last year, one of the highest of the main economies, and above 3 per cent this year.

    And I can assure you that having had the strength to make the difficult long term decisions after 1997 we will continue to have the strength to take the long term decisions that put stability first now and in the future, supporting our monetary authorities in the difficult choices they have to make. And I can say categorically to investors everywhere that while no-one can ignore the reality of the economic cycle and the potential of global events to impact on the economy, we will entrench not relax our fiscal discipline.

    For let us recall that at this stage in the economic and political cycle, past governments have resorted to short-termism in fiscal policy and gone on to raise the rate of spending in a pre election spree.  But I can tell you this morning that in exactly the same way that we had the strength since 1997 to take long term decisions on fiscal as well as monetary policy, we are equally resolved today to avoid at all times the short-termism and mistaken fiscal as well as monetary policies of the past.

    So, as I have announced, we will, while meeting all our commitments and our fiscal rules, lower not raise the rate of spending growth in the next spending round.  I can tell you that while it was right – because we are tackling decades of under investment – that current spending rose in real terms by an average of 4 per cent between 2000 and 2004, it will grow by an average of 2.5 per cent in real terms between 2006 to 2008.

    And I tell you we will not be tempted into making the mistakes of the past. And I would caution against policies – bad for Britain’s long term future – that would complacently assume that our stability is a given that any government could maintain without risking the return of the old stop go; and against policies that would:

    • tamper with our fiscal rules vital to that stability, abolish the New Deal with its obligations on the unemployed, cut investments each of us know are vital for our local economies in infrastructure and in science and skills, as well as in security and law and order, the importance of which you have highlighted this morning;
    • and retreat from our long term fiscal disciplines – from fiscal rules set over the cycle – to the old annual inflexibilities which would repeat in Britain the same mistakes of the stop go years of the early nineties and indeed repeat in Britain exactly the same rigidities seen in the Stability and Growth Pact in the euro area.

    And let us also recall that in the past Britain usually fell into recession after two inflationary bursts – an initial burst of inflation when demand got out of control and then a second burst of inflation when wage negotiators sought to catch up with expected high inflation in their pay claims.

    But I can tell everyone who depends on a wage or salary that under our new model of Bank of England independence, inflation – as we saw yesterday – is now less than 2 per cent, is likely to be less than 2 per cent this year and it is set to be just 2 per cent in the next and subsequent years.   And in this upturn when Britain must seize the opportunities by being fully competitive it is vital we complement this anti inflation discipline by both private sector and public sectors showing pay responsibility.

    Our message on pay is clear: there must be no return to the bad old days of pay irresponsibility in the private sector and we will tolerate no irresponsibility in the public sector. Civil service unions should also know that not only will we proceed with the 40,500 job reductions in the Department for Work and Pensions and the Inland Revenue and Customs – reducing administration costs across Whitehall from the 4.6 per cent we inherited to 3.7 per cent by 2008 – but there will be no going back to the old days of inflationary pay deals that would put hard won economic gains in jobs, prosperity and stability at risk.

    So once a stop-go economy, Britain is now one of the more stable.  And we are determined not to be diverted from keeping it that way. And it is time for us, facing new global economic challenges, to combine this new stability with a new resolve to make the right long term choices and reforms to achieve excellence in enterprise, in science and innovation, and in skills.

    So in the same way that a British consensus has been forged across the country – across management and workforces, and across all parties – for low inflation and our British framework for stability, we can, I believe, aim higher to forge – again across all parties, all groups – a deeper British consensus for enterprise — an entrepreneurial renaissance that celebrates and develops the entrepreneurial spirit that made us the first industrial power of the world and opens up the opportunities of enterprise to all with the talent and drive.

    Think back to the old days not just of stop go but of a sterile self-defeating corporatism that stifled enterprise and creativity and was Britain’s response to our nation’s relative economic decline

    Hence what we called:
    ‘The productivity problem’
    ‘The short termism problem’
    ‘The union problem’
    ‘The management problem’
    ‘The investment problem’
    The ‘What’s wrong with Britain problem’.

    I am pleased to report that because of your efforts there are today 100,000 more businesses than in 1997.

    Because for us a key priority was to send a message not just about stability but also about enterprise, a Labour Government, even with other priorities including investing in the NHS, education and transport and law and order, made the decision to cut capital gains tax for long term business assets dramatically – from 40 pence where it had been for years down to 10 pence.

    And I can tell you that while in every country health care cures and technologies have meant rising costs – in America most dramatically to 15 per cent of national income – hence our decision which I explained to you last year that national insurance pay for new investment matched to managerial reform in the NHS – we have since 1997 cut corporation tax from 33 pence to 30 pence, cut small business corporation tax from 23 pence to 19 pence and we are determined to keep our tax rates low and competitive, one of the reasons why  Britain is the most attractive place to invest and do business.

    You asked us to consider capital allowances and in particular special help for start up businesses, and support for venture capital. And not only have we made first year capital allowances permanent and in 2000 enterprise areas we have abolished stamp duty altogether but for this year as the economy moves forward we increased allowances for small firms to 50 pence and gave new support in the budget for the venture capital industry in all regions and nations of our country.

    Now regulation, red tape and bureaucracy are challenges in every industrial country of the world and whenever I go to the USA businessmen and women there raise about the very same things about the USA economy –  red tape, bureaucracy and regulation.

    You asked if together we could look at VAT. Instead of having to account for every transaction an automatic flat rate VAT calculation for small businesses which lifts the burden of VAT red tape off the shoulders of hundreds of thousand of companies. And we have more small companies taken out of VAT from a more generous threshold than any country in Europe.

    You asked us if working together we could look at red tape in auditing and we have exempted more small businesses from the requirement to submit an independent audit.

    You asked us if working together we could look at the system of inspections and enforcement and its costs – and we have set up a review – to which I know you are contributing – to minimise and reduce duplication in the inspection system and enforcement regimes.

    You asked us if working together we could look at the administration of the working tax credit – and having accepted the case for the Inland Revenue paying the credit directly to employees, we are now consulting with you on detailed implementation.

    You asked us if working together we could look at the cost of submitting statistical returns and the National Statistician is working with you through the Business Forum to look at what more can be done to minimise the burden on small business.

    You asked us if working together we could look at the Information Commissioner’s requirements and we produced shortened and simplified guidance for companies about the Employment Practices Data Protection Code.

    You asked us if working together we could look at the way new regulations were examined and from now on, the Regulatory Impact Unit will prevent the implementation of new policies if no proper assessment of the regulatory impact on business has been done.  For the chemicals, construction and retail industries we have established industry forums to give business early warning of new regulations and allow you to express your views on them.  And just as legislation can only be is only approved after a Cabinet process chaired by the Prime Minister so too from now on new regulations with a major impact on business will only be allowed to go ahead after being submitted to a cabinet route, with a strengthened Panel for Regulatory Accountability.

    And because 40 per cent of new regulation comes from Europe we have resisted inflexible barriers being added into European Directives like the Working Time Directive and Agency Workers Directive, the Investment Services Directive and the Transparency Directive – showing that the best contribution we pro Europeans can make to Europe’s future is to lead the reforms that will make it more competitive. And Britain has agreed with Ireland, the Netherlands and Luxembourg to put regulatory reform at the heart of our four EU Presidencies through to 2005, ensuring that any proposed regulation and every costly and wasteful existing regulation is put to a competitiveness test.

    We also know that working together we can do more to enhance Britain’s great entrepreneurial culture.

    And we have been considering what might be done to recognise that outstanding success.  So it is right to tell this conference which has been so prominent in promoting entrepreneurial talent in every region and every locality that building on the Queen’s Award for Enterprise the Government is in discussions with the Palace about new ways of recognising outstanding individual contributions to the development and promotion of enterprise nationally, regionally and locally.

    We will hold the first ever national Enterprise Week – focused on inspiring the young to be enterprising – in November.

    There will be an annual British competition for the British town or city of enterprise and just as we compete for a European City of Culture we propose a competition for the European City of Enterprise too.

    All pupils before they leave school will have the opportunity to enjoy not just work experience but enterprise education too.

    And we are launching a new national council for graduate entrepreneurship – and I’d like to thank you, and in particular your Director General David Frost, for your commitment to this initiative.

    And we will devolve Small Business Services to where they should be – run locally, sensitive to the needs of local businesses.

    And in budget after budget I want to do more making the right long term choices for Britain to encourage the risk takers and those with ambition to turn their ideas into reality and make the most of their talents.

    And facing up to the global economic challenge – within 20 years potentially half the worlds manufactured exports produced in the developing economies, with up to 5 million jobs outsourced from Europe and America –  this government must also have the strength to make the hard long term choices in favour of free trade and an outward looking internationalism.

    That is why our commitment as a Government is that we will make the case for our membership of the European Union – which accounts for 50 per cent of our trade – for the advantages it brings to Britain, and for being a leader in the enlarged Europe, the biggest single market in the world.

    And we must also make the hard long term choices to build on Britain’s scientific and creative genius and make investment in science and skills a priority:

    • offering the long term incentives that encourage new as well as established firms to invest in R and D;
    • setting out a long term plan for science funding – all to encourage investment in the new technologies of the future

    And as your report proposes this morning every one of you who runs a company knows that you must draw on the potential of everyone in your company to be successful – and its no different for a country.

    Through Learn Direct, employer training pilots, union learning funds and then the return of apprenticeships, over 1 million more adults are gaining practical new skills than six years ago.  But I want us to be the best educated and best trained workforce and so I also commit us to taking, in this coming public spending round, the tough decisions necessary:

    • demanding, in return for investment, the highest standards in our schools and further education colleges;
    • reforming university finance to secure for Britain world class universities now and in the future;
    • and because university financial reforms will help fund universities, a chance also to invest in consultation with you in the area you have highlighted today and to which I am committed to do far more in our review – the all too often neglected area of vocational education and the improvement of the numbers and quality of modern apprenticeships – once dying, now covering 250,000 young people and soon one third – giving young people the practical skills they and the economy needs.  Our aim, the aim you share – that Britain becomes the best educated, most skilled, most technically proficient workforce; all the time encouraging and incentivising a great historic British quality – a work-your-way-up ethos of self improvement and self reliance.
    • So, in conclusion, no return ever to the old boom-bust policies of the past and no relaxation of our disciplines but a Britain – once the stop go economy of the world – that succeeds in the new global competition because as the country of great political stability it now also it maintains and entrenches its economic stability.

    A Britain that succeeds in the new global competition because working together we reject the old rigidities of the past and win as a flexible, reforming, and ever more enterprising economy.

    A Britain that succeeds globally because working together we build on our scientific genius and are outward looking, internationalist and European.

    Government effective where it has to be effective – in economic stability, science, skills; businesses are able to be the wealth creators they are, and encouraged where it matters – with incentives and rewards to invest and grow.

    And a Britain that succeeds globally because we share a long term economic purpose – that long term commitment not ever to take the easy way out or the short term course but resolute to get things right for the long term.

    Making Britain a better place to do business – and, if we make the long term changes needed, better still years from now.