UKPOL.CO.UK

Category: Speeches

  • Liam Fox – 2019 Speech to CityWeek

    Below is the text of the speech made by Liam Fox, the Secretary of State for International Trade, on 20 May 2019.

    1. Introduction – the prophets of doom were wrong

    If there is one sector in our economy that represents a combination of old-fashioned British grit and determination alongside global innovation and leadership, it must surely be financial services. Time and again doom-mongers have predicted the demise of the City. And time and again they have been proved wrong.

    From the Big Bang deregulation of financial markets in 1986, when some predicted London would struggle to continue to compete as a global financial centre. To cries that the end was nigh for the City of London when the United Kingdom decided against joining the Euro – a decision that I believe has stood the test of time. To the 2008 financial crisis, which brought the sector to the brink. All wrong. But the City of London has not just survived the onslaught, it has positively thrived in the face of some formidable threats.

    And as we prepare to leave the European Union, once again the death-knell has been sounded on the future of the UK’s financial sector. Now I understand people’s concerns – we are in the middle of a fundamental change of direction, and the unwillingness of Parliament I have to say to give certainty exacerbates the situation. But I am convinced that when the dust settles the City of London will do what it always does, which is to emerge fitter, stronger and more dynamic than ever.

    2. The strength of UK financial services

    Since the referendum in 2016, the United Kingdom has maintained – and even strengthened – its position as a global financial centre: I would argue as the leading financial centre. Just today, Deloitte’s Crane Survey shows that construction of new offices in London has hit its highest level since the referendum.

    Office space under construction between October 2018 and March 2019 amounted to 13.2 million square feet: the equivalent of more than 22 Shards, up 12% compared to the previous survey, while volume of new office construction activity was 3.5 million square feet: some 38% higher than the previous survey. Office space under construction between October 2018 and March 2019 amounted to 13.2 million square feet: the equivalent of more than 22 Shards worth of office space – and a 12% increase compared to the previous survey.

    It’s a far cry from the doom and gloom predicted when the UK voted to leave the European Union in 2016, and reinforces the City’s global pre-eminence as an investment destination. And this follows on from recent OECD figures which show the total value of foreign investment stock into the UK increased by a further 5% to £1.46 trillion in 2018, making the UK now home to more foreign investment than Germany, Spain and Poland all put together.

    And the financial sector stands at the heart of that success. Our deep and liquid global capital pool, a pioneering regulatory framework, and world-class advisory, legal and related professional services have helped us run one of the greatest trade surpluses in our history: at around £43 billion a year. Some 4.2% of the UK’s working population, nearly 1.4 million people, are employed in finance and insurance. And, with two-thirds of these employed outside London, it’s important to remember that the City’s influence is not confined to the square mile; it stretches right the way across the UK with new jobs and opportunities being created all the time. The depth of our professional infrastructure runs from London to Edinburgh, to Bristol to Belfast. Goldman Sachs, for example, is opening a new office in Milton Keynes, creating up to 250 jobs. The new UK challenger bank OakNorth investment is bolstering its ranks, taking on new staff in Manchester, the Midlands and the South West to keep up with demand for its demand for business loans.

    KPMG has announced plans to create up to 400 jobs over the next three years in Glasgow. This is truly a sector which benefits every part of the United Kingdom.

    And it is of fundamental importance to the overall strength of our economy. According to the industry body TheCityUK, our banking sector is the largest in Europe. London alone hosts over 250 foreign banks, more than New York, or Paris or Frankfurt combined. It is our largest tax payer, contributing around 11% of total UK tax receipts – or £72 billion on the latest figures – paying for the schools, hospitals, security and the other public services on which we all rely. Those who threaten its viability or stoke up resentment against the sector should remember how much it pays the bills. It is the ability to innovate, to adapt and to change that keeps us on top. The UK was the first Western centre to embrace Islamic finance: the first to offer a Sharia-compliant bond, for example – and remains its leading western centre.

    We also host the second largest offshore centre for Chinese renminbi clearing. Twice as many dollars are traded in the UK as in the US, and twice as many euros are traded in the UK as in the Eurozone.

    The UK has more than 40% of the global market in Fixed Income, Currencies and Commodity trading. We have the second largest centre for debt financing globally after the United States. And we are – by far – the largest capital market in Europe, accounting for 20% of the bond and loan market, and 33% of all Initial Public Offerings and private equity activity in Europe. And of course the United Kingdom is the home of the FinTech revolution, making sweeping changes, delivering more control, access and increased competition.

    It has been estimated that we have more software developers than Berlin, Dublin and Stockholm all combined. And of course we have Level 39, Europe’s largest fintech accelerator. And last year the UK attracted more venture capital investment than anywhere else in Europe, with £6.3 billion. And these advantages are showcased in our Fin Tech sector, with around 1,600 firms contributing approximately £7 billion to our economy and supporting over 75,000 jobs. Furthermore, the UK is now the number one investment destination in the world for mergers and acquisitions, ahead of the US, ahead of Germany and ahead of China, according to a report by EY. And these are just some of the achievements, I could go on and for a little bit of encouragement I might! But the point I want to make really is this: that this Government believes in the City and is behind you every step of the way in your success.

    Our financial services are of huge value to this country’s overall prosperity and I am convinced that you will remain at the heart of the global financial system whatever the outcome of the Brexit process.

    3. Facing the challenges ahead

    Of course, there’s no room for complacency and we must face up to the fact that there will be significant challenges as well as opportunities ahead, not least because a number of new players will become apparent. I recognise that, for many firms in this room, the period since the Referendum has been one of uncertainty. So please be assured that we firmly believe the best approach is to leave the EU with a deal and we are continuing to work hard, including with parties across Parliament, to find a way forward. But whatever the outcome, I want you to know that this Government will remain your champion. We will never jeopardise the City’s success. We recognise your difficulties, we recognise your importance, and we want to work with you to give certainty and stability wherever possible as we move towards our new deep and special partnership with the European Union. But it is also worth stressing, and I think it does not happen enough, that there is a world beyond Europe and there will be a time beyond Brexit.

    Britain stands on the brink of a new era in our trading history, continuing our close cooperation with our partners in European Union who still represent 44% of our exports, while reaching out as an independent trading nation for the first time in 40 years to friends old and new in the wider world. While our established partners such as the EU will continue to be of great importance, the locus of economic power is shifting rapidly, with an estimated 90% of global economic growth projected to occur outside the European Union over the next five years. That is where the markets are going to be, and that is where we need to be.

    The world is becoming increasingly well educated, wealthier, and more urbanised. And it is predicted that the share of global GDP of the seven largest emerging economies – including China, India and Turkey – could increase from around 35% to nearly 50% of global GDP by 2050, which would mean that they overtake the current G7. It is a seismic shift in global economic power. When I try to explain it to people, I point out them that by 2030, China will have more than 220 cities with a population of more than 1 million people. The whole of continental Europe will have 35. It is worth understanding the scale of the change. This historic shift in global economic and demographic power will reshape the opportunities of international trade in the years to come.

    The mission of my Department is to build a future for the UK’s international trade in this emerging environment: to open new markets, build new export and investment opportunities, investment into the United Kingdom and investment out from the United Kingdom, and, perhaps most importantly, champion the cause of free trade and trade liberalisation, especially in services in an era where protectionism is increasingly lifting its ugly head. In 2017-18 alone, my Department supported a total of 332 financial and related professional services projects, securing or safeguarding over 15,000 jobs in this country.

    We have launched four public consultations, to seek new Free Trade Agreements when we leave the European Union, with the United States, with Australia to New Zealand, as well as the potential to seek accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, CPTPP – which is always easier to say now than it is later in the day. Our new Export Strategy will help the UK climb the ranks of the 21st century’s great trading nations by encouraging, informing, connecting and facilitating finance for firms to realise their full exporting potential, and that is particularly true for SMEs where we need to find new exporters.

    In addition to this, we continue to work with key economic partners around the world. For example, I was recently delighted to address Qatar Day, which highlighted the mutual opportunities for business across asset management, cyber security, capital markets, sustainable finance and FinTech, for UK and Qatari companies. Qatar incidentally has over £35 billion of investment in the UK, much of which is here in London. And FinTech is at the heart of our global technology and innovation strategy and our growth agenda. That’s why we are continuing to roll out our FinTech Bridges – links between Governments, regulators and private sectors – in priority global markets, from Singapore to China, from Hong Kong to Australia, where we launched our FinTech Bridge Pilot Programme last month. And these Bridges will promote regulatory cooperation to reduce barriers to entry in one another’s markets. We are also working to leverage the UK’s unique expertise and capacities to assist development in emerging economies. For example, in January my team visited Latin America to discuss how the UK’s insurance and risk modelling knowhow might help these emerging economies adapt and mitigate against the effects of climate change.

    And both the UK Government and industry are developing an international road map for greening the financial system.

    And my Department will be key to helping leverage UK expertise to combat climate change through Green Finance, in which the UK is – yet again – a world leader. The Government is also working with the London Stock Exchange and the wider capital markets community to target local currency bond issuances.
    Just last Friday, the Indian state of Kerala issued the first sub-sovereign level bond for developing infrastructure in the UK, following in the steps of countries like Indonesia who did the same last year, showcasing once again the contribution the City is making to finance infrastructure worldwide and contributing to our international development agenda, a fact that is not nearly widely enough understood.

    4. Conclusion

    I know there are many people who are concerned that Brexit means Britain turning in on itself and becoming more introspective. Nothing could be further from the truth.

    As we leave the European Union we will become more open to the world, not less, and more open to the great opportunities that lie beyond European shores. The financial sector and its related professional services will be at the centre of these new opportunities. Never before have prospects globally been so great. Yes of course there are challenges, as there always have been.

    But I can assure you that the British Government stands ready to help you seize these opportunities, to make our financial sector’s future even brighter than the past has been.

    … accelerating financial inclusion by giving people better tools to save, to manage, to borrow and invest their money … supporting the financial products, technical expertise and experience needed to grow developing economies, which will be in all our interests… … and building a more stable, secure and prosperous future, both for the United Kingdom and our partners around the world.

    We have a great opportunity to shape the world around us. In fact, we always have a binary choice: to shape the world around us, or be shaped by the world around us. We must have the confidence and courage to do that shaping. The City has led the charge before. It will do so again. Thank you.

  • Theresa May – 2019 Speech on Brexit

    Below is the text of the speech made by Theresa May, the Prime Minister, on 21 May 2019.

    I became Prime Minister almost three years ago – immediately after the British people voted to leave the European Union.

    My aim was – and is – to deliver Brexit and help our country move beyond the division of the referendum and into a better future.

    A country that works for everyone.

    Where everyone has the chance to get on in life and to go as far as their own talent and hard work can take them.

    That is a goal that I believe can still unite our country.

    I knew that delivering Brexit was not going to be simple or straightforward.

    The result in 2016 was decisive, but it was close.

    The challenge of taking Brexit from the simplicity of the choice on the ballot paper to the complexity of resetting the country’s relationship with 27 of its nearest neighbours was always going to be huge.

    While it has proved even harder than I anticipated, I continue to believe that the best way to make a success of Brexit is to negotiate a good exit deal with the EU as the basis of a new deep and special partnership for the future.

    That was my pitch to be leader of the Conservative Party and Prime Minister.

    That is what I set out in my Lancaster House speech and that was what my Party’s election manifesto said in 2017.

    That is in essence what the Labour Party’s election manifesto stated too.

    And over 80% of the electorate backed parties which stood to deliver Brexit by leaving with a deal.

    We have worked hard to deliver that – but we have not yet managed it.

    I have tried everything I possibly can to find a way through. It is true that initially I wanted to achieve this predominantly on the back of Conservative and DUP votes.

    In our Parliamentary system, that is simply how you normally get things done.

    I sought the changes MPs demanded.

    I offered to give up the job I love earlier than I would like.

    And on 29th March – the day we were meant to leave the EU – if just 30 MPs had voted differently we would have passed the Withdrawal Agreement. And we would be leaving the EU.

    But it was not enough.

    So I took the difficult decision to try to reach a cross-party deal on Brexit.

    Many MPs on both sides were unsettled by this. But I believe it was the right thing to do. We engaged in six weeks of serious talks with the Opposition, offering to compromise.

    But in the end those talks were not enough for Labour to reach an agreement with us.

    But I do not think that means we should give up.

    The House of Commons voted to trigger Article 50.

    And the majority of MPs say they want to deliver the result of the referendum.

    So I think we need to help them find a way.

    And I believe there is now one last chance to do that.

    I have listened to concerns from across the political spectrum.

    I have done all I can to address them.

    And today I am making a serious offer to MPs across Parliament.

    A new Brexit deal.

    As part of that deal I will continue to make the case for the Conservative Party to be united behind a policy that can deliver Brexit.

    9 out of 10 Conservative MPs have already given the Withdrawal Agreement their backing and I want to reach out to every single one of my colleagues to make the very best offer I can to them.

    We came together around an amendment from Sir Graham Brady – and this gave rise to the work on Alternative Arrangements to the backstop.

    Although it is not possible for those to replace the backstop in the Withdrawal Agreement, we can start the work now to ensure they are a viable alternative.

    So as part of the new Brexit deal we will place the government under a legal obligation to seek to conclude Alternative Arrangements by December 2020 so that we can avoid any need for the backstop coming into force.

    I have also listened to Unionist concerns about the backstop.

    So the new Brexit deal goes further to address these.

    It will commit that, should the backstop come into force, the Government will ensure that Great Britain will stay aligned with Northern Ireland.

    We will prohibit the proposal that a future Government could split Northern Ireland off from the UK’s customs territory.

    And we will deliver on our commitments to Northern Ireland in the December 2017 Joint Report in full.

    We will implement paragraph 50 of the Joint Report in law.

    The Northern Ireland Assembly and Executive will have to give their consent on a cross-community basis for new regulations which are added to the backstop.

    And we will work with our Confidence and Supply Partners on how these commitments should be entrenched in law.

    This new Brexit deal contains significant further changes to protect the economic and constitutional integrity of the United Kingdom and deliver Brexit.

    It is a bespoke solution that answers the unique concerns of all parts of the community in Northern Ireland.

    But the reality is that after three attempts to secure Parliamentary agreement, we will not leave the European Union unless we have a deal that can command wider cross-party support.

    That’s why I sat down with the Opposition.

    I have been serious about listening to views across the House throughout this process.

    That is why when two Labour MPs, Lisa Nandy and Gareth Snell, put forward their proposals to give Parliament a bigger say in the next phase of the negotiations I listened to them.

    So the new Brexit deal will set out in law that the House of Commons will approve the UK’s objectives for the negotiations on our future relationship with the EU and they will approve the treaties governing that relationship before the Government signs them.

    And while the talks with the opposition did not reach a comprehensive agreement, we did make significant progress in a number of areas.

    Like on workers’ rights. I am absolutely committed to the UK continuing to lead the way on this issue.

    But I understand people want guarantees. And I am happy to give them.

    So the new Brexit deal will offer new safeguards to ensure these standards are always met.

    We will introduce a new Workers’ Rights Bill to ensure UK workers enjoy rights that are every bit as good as, or better than, those provided for by EU rules.

    And we will discuss further amendments with trade unions and business.

    The new Brexit deal will also guarantee there will be no change in the level of environmental protection when we leave the EU.

    And we will establish a new independent Office of Environmental Protection to uphold the highest environmental standards and enforce compliance. The new Brexit deal will also place a legal duty on the Government to seek as close to frictionless trade with the EU in goods as possible, subject to being outside the Single Market and ending freedom of movement.

    In order to deliver this, the UK will maintain common rules with the EU for goods and agri-food products that are relevant to checks at the border. This will be particularly important for our manufacturing firms and trade unions, protecting thousands of jobs that depend on just-in-time supply chains.

    The most difficult area is the question of customs.

    At the heart of delivering Brexit lies a tension between the strength of our ambition to seize the new opportunities that Brexit presents – and the need to protect the jobs and prosperity that are built on an interconnected relationship with other European economies.

    This ambition should not be divisive. There are many people who voted to Leave who also want to retain close trading links with Europe. Just as there are many people – like myself – who voted to Remain and yet are excited by the new opportunities that Brexit presents.

    Indeed I believe that one of the great opportunities of leaving the European Union is the ability to have an independent trade policy and to benefit from the new jobs and industries that can result from deepening our trade ties with partners across every continent of the world.

    But I have never believed that this should come at the expense of the jobs and livelihoods that are sustained by our existing trade with the EU.

    And to protect these, both the Government and the Opposition agree that we must have as close as possible to frictionless trade at the UK-EU border.

    Now the Government has already put a proposal which delivers the benefits of a customs union but with the ability for the UK to determine its own trade and development policy.

    Labour are both sceptical of our ability to negotiate that and don’t believe an independent trade policy is in the national interest. They would prefer a comprehensive customs union – with a UK say in EU trade policy but with the EU negotiating on our behalf.

    If we are going to pass the Withdrawal Agreement Bill and deliver Brexit, we must resolve this difference.

    As part of the cross-party discussions the government offered a compromise option of a temporary customs union on goods only, including a UK say in relevant EU trade policy and an ability to change the arrangement, so a future government could move it in its preferred direction.

    We were not able to agree this as part of our cross-party talks – so it is right that Parliament should have the opportunity to resolve this during the passage of the Bill and decide between the government’s proposal and a compromise option.

    And so the Government will commit in law to let Parliament decide this issue, and to reflect the outcome of this process in legislation.

    I have also listened carefully to those who have been arguing for a Second Referendum.

    I have made my own view clear on this many times. I do not believe this is a route that we should take, because I think we should be implementing the result of the first referendum, not asking the British people to vote in a second one.

    But I recognise the genuine and sincere strength of feeling across the House on this important issue.

    The Government will therefore include in the Withdrawal Agreement Bill at introduction a requirement to vote on whether to hold a second referendum.

    This must take place before the Withdrawal Agreement can be ratified.

    And if the House of Commons were to vote for a referendum, it would be requiring the Government to make provisions for such a referendum – including legislation if it wanted to ratify the Withdrawal Agreement.

    So to those MPs who want a second referendum to confirm the deal: you need a deal and therefore a Withdrawal Agreement Bill to make it happen.

    So let it have its Second Reading and then make your case to Parliament.

    Finally, we cannot expect MPs to vote on the same two documents they previously rejected. So we will seek changes to the political declaration to reflect this new deal.

    So our New Brexit Deal makes a ten-point offer to everyone in Parliament who wants to deliver the result of the referendum.

    One – the Government will seek to conclude Alternative Arrangements to replace the backstop by December 2020, so that it never needs to be used.

    Two – a commitment that, should the backstop come into force, the Government will ensure that Great Britain will stay aligned with Northern Ireland.

    Three – the negotiating objectives and final treaties for our future relationship with the EU will have to be approved by MPs.

    Four – a new Workers’ Rights Bill that guarantees workers’ rights will be no less favourable than in the EU.

    Five – there will be no change in the level of environmental protection when we leave the EU.

    Six – the UK will seek as close to frictionless trade in goods with the EU as possible while outside the single market and ending free movement.

    Seven – we will keep up to date with EU rules for goods and agri-food products that are relevant to checks at the border protecting the thousands of jobs that depend on just-in-time supply chains.

    Eight – the Government will bring forward a customs compromise for MPs to decide on to break the deadlock.

    Nine – there will be a vote for MPs on whether the deal should be subject to a referendum.

    And ten – there will be a legal duty to secure changes to the political declaration to reflect this new deal.

    All of these commitments will be guaranteed in law – so they will endure at least for this Parliament.

    The revised deal will deliver on the result of the referendum.

    And only by voting for the Withdrawal Agreement Bill at Second Reading, can MPs provide the vehicle Parliament needs to determine how we leave the EU.

    So if MPs vote against the Second Reading of this Bill – they are voting to stop Brexit.

    If they do so, the consequences could hardly be greater.

    Reject this deal and leaving the EU with a negotiated deal any time soon will be dead in the water.

    And what would we do then?

    Some suggest leaving without a deal.

    But whatever you think of that outcome – Parliament has been clear it will do all it can to stop it.

    If not no deal, then it would have to be a General Election or a second referendum that could lead to revocation – and no Brexit at all.

    Who believes that a General Election at this moment – when we have still not yet delivered on what people instructed us to do – is in the national interest?

    I do not.

    And my views on second referendum are well known.

    Look at what this debate is doing to our politics.

    Extending it for months more – perhaps indefinitely – risks opening the door to a nightmare future of permanently polarised politics.

    Look around the world and consider the health of liberal democratic politics.

    And look across the United Kingdom and consider the impact of failing to deliver on the clear instruction of the British people in a lawful referendum.

    We do not have to take that path. Instead, we can deliver Brexit.

    All the changes I have set out today have the simple aim of building support in Parliament to do that.

    I believe there is a majority to be won for a Brexit deal in the House of Commons. And by passing a deal we can actually get Brexit done – and move our country forwards.

    If we can do so, I passionately believe that we can seize the opportunities that I know lie ahead.

    The world is changing fast. Our young people will enjoy opportunities in the future that my generation could have never dreamed of.

    This is a great time to be alive. A great future awaits the United Kingdom.

    And we have all we need as a nation to make a success of the 2020s and the 2030s. But we will not do so as long as our politics remains stuck in an endless debate on Brexit.

    We all have to take some responsibility for the fact that we are in this impasse – and we all have a responsibility to do what we can to get out of it.

    The biggest problem with Britain today is its politics.

    And we can fix that.

    With the right Brexit deal, we can end this corrosive debate.

    We can get out of the EU political structures – the Parliament, the Commission, the Council of Ministers that are remote from our lives – and put our own Parliament back in sovereign control of our destiny.

    We can stop British laws being enforced by a European court and instead make our own Supreme Court is genuinely supreme.

    We can end free movement and design an immigration system based around skills that work for our economy and society.

    We can stop making vast annual payments to the EU budget and instead spend our own money on our own priorities like the NHS.

    We can get out of the Common Fisheries Policy and the Common Agricultural Policy, and design our own systems around our own needs and resources.

    We can do all of these things.

    And by leaving with a deal we can do so much more besides.

    By reaching an agreement with our EU trading partners we can keep tariff barriers down and goods flowing friction-free across borders.

    Protecting jobs, and setting our firms up for future success.

    We can guarantee workers’ rights and environmental protections.

    With a deal we can keep our close security partnerships – and keep working together to keep people safe.

    We can ensure that the challenge of the land border between Northern Ireland and Ireland is met in a way that works for people on both sides.

    This is a huge opportunity for the United Kingdom.

    Out of the EU, out of ever closer union, free to do things differently.

    And doing so in a way that protects jobs, protects our security, maintains a close relationship with our friends and works for the whole United Kingdom.

    It is practical. It is responsible. It is deliverable.

    And right now, it is slipping away from us.

    We risk losing a great opportunity.

    This deal is not the final word on our future relationship with the EU – it is a stepping stone to reach that future.

    A future where the people of the UK determine the road ahead for the country we all love.

    This deal lays the groundwork – and settles many of the core issues.

    But in the years ahead, Parliament will be able to debate, decide and refine the exact nature of our relationship with the EU.

    Some will want us to draw closer, others will want us to become more distant.

    Both sides can make their case in the months and years ahead.

    The key thing is, decisions will be made not by MEPs or Commissioners or the EU Council – but by the United Kingdom Parliament, elected by the British people.

    That is what being an independent nation state is all about.

    Those debates, those decisions, are for the future.

    What matters now is honouring the result of the referendum and seizing the opportunity that is right before us.

    So we are making a new offer to find common ground in Parliament.

    That is now the only way to deliver Brexit.

    Over the next two weeks the government will be making the case for this deal in Parliament, in the media and in the country.

    On what is best and right for our country now and in the future. And on what the majority of British people of all political persuasions want to see happen.

    Tomorrow I will make a statement to the House of Commons.

    And there will opportunities throughout the Bill for MPs on all sides to have their say.

    But I say with conviction to every MP of every party – I have compromised. Now I ask you to compromise too.

    We have been given a clear instruction by the people we are supposed to represent.

    So help me find a way to honour that instruction, move our country and our politics forward, and build the better future that all of us want to see.

  • Sajid Javid – 2019 Statement on Recovery Champion

    Below is the text of the statement made by Sajid Javid, the Home Secretary, in the House of Commons on 15 May 2019.

    In the 2017 drug strategy the Government committed to appointing a national recovery champion. The recovery champion will play a key role in delivering the Government’s ambitions by helping improve the prospects of individuals seeking to recover from substance misuse.

    I am pleased to announce today that I have appointed Dr Edward Day to the role of recovery champion. This appointment is for three years, with Dr Day’s appointment commencing on 15 May 2019 and ending on 14 May 2022. The recovery champion role will extend to England only.

    Dr Day has a wealth of experience in the substance misuse field, dealing directly with those who are dependent on drugs as well as informing national guidance and debate. He was one of the first within the field to champion the recovery agenda and to embed it successfully in local services. I am confident that he will make effective use of his considerable experience and extensive knowledge in drug and alcohol treatment and recovery in this role.

    It is clear that substance misuse has a hugely damaging impact on individuals, families and communities. To support effective recovery outcomes across the country, Dr Day will work towards galvanising partners at national and local levels, offering advice to local partners on how evidence-based practice can be most effectively applied, and supporting collaboration at a national level through the Drug Strategy Board.

  • Andrew Stephenson – 2019 Statement on Nuclear Energy

    Below is the text of the statement made by Andrew Stephenson, the Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy, in the House of Commons on 15 May 2019.

    Government’s preparations for the UK’s withdrawal from Euratom mean that the UK now has all the necessary measures in place to ensure that the UK nuclear industry can continue to operate with certainty in all situations.

    On 22 February the UK and Japan signed an exchange of notes confirming how the terms of our existing 1998 nuclear co-operation agreement will operate in the context of the UK’s withdrawal from Euratom.

    The Nuclear Safeguards (Fissionable Material And Relevant International Agreements) (EU exit) Regulations 2019 and the Nuclear Safeguards (EU exit) Regulations 2019 and the Shipments Of Radioactive Substances (EU Exit) Regulations 2019 have been made. This means that Government have put in place all legislation needed ahead of the UK leaving Euratom to ensure that it can now operate as an independent and responsible nuclear state, and that civil nuclear trade can continue.

    Government have also published further guidance to industry on no-deal arrangements in relation to the Transfrontier Shipment Of Radioactive Waste And Spent Fuel (EU exit) Regulations 2019, and the Shipments Of Radioactive Substances (EU Exit) Regulations 2019.

    Today I will be depositing a report in the Libraries of both Houses that sets out further details on the overall progress on the Government’s implementation of their Euratom exit strategy, including EU negotiations, domestic operational readiness, legislation and international ​agreements. The report covers the three-month reporting period from 26 December to 26 March and is the third statutory report under section 3(4) of the Nuclear Safeguards Act 2018. The next report on Euratom exit progress is due to be deposited in July 2019.

  • George Eustice – 2019 Speech on Hares Preservation

    Below is the text of the speech made by George Eustice, the Conservative MP for Camborne and Redruth, in the House of Commons on 14 May 2019.

    I beg to move,

    That leave be given to bring in a Bill to prohibit the killing or taking of hares during the breeding season; to repeal the Hares Preservation Act 1892; and for connected purposes.

    One of the things that we all need to learn when we are first elected to the House is that it can be surprisingly difficult to get things done. A Minister who remains in one place for long enough will, slowly but surely, get important issues over the line, but not everything. For me, following my time in the Department for Environment, Food and Rural Affairs, modernising our rules relating to hare preservation and, in particular, a close season on the shooting of hares remains unfinished business.

    Hares are an iconic and much-loved species, famed for their boxing behaviour in March. However, their population has fallen to an estimated 800,000, from what was thought to be about 4 million in the mid to late 19th century. Our hare population is under increasing pressure from disease—including the rabbit haemorrhagic disease virus, which was identified in hares in January this year—and also from illegal hare coursing.

    Let me take this opportunity to commend the work that the police are doing to tackle the illegal gangs who are responsible for hare coursing. Yesterday, I spoke to Phil Vickers, the national lead on these issues. We are now seeing far more police co-operation and co-ordination nationally. Police forces in Lincolnshire, Cambridgeshire, Humberside and North Yorkshire are working together and sharing intelligence. The police estimate that about 150 hardened individuals are responsible for the majority of these illegal hare coursing events. Last year, the police prosecuted 47 individuals in Lincolnshire alone, so progress is being made. The police would welcome some changes in the law, such as a provision to make it easier for them to seize dogs and recover the cost of kennelling them, but that will be a matter for a different piece of legislation on a different day. My Bill addresses the shooting of hares.

    The Government estimate that about 300,000 hares are shot each year, mostly during February and March. That figure sounds quite high, so when I first heard it, I felt some scepticism, and I took the liberty of talking to a gamekeeper on the Babworth estate, Jonathan Davis, about how it was possible for it to have become so high.

    The figures are broadly as follows. There are 3,900 registered shooting estates in the UK. It is estimated that about 80% of them do not shoot hares, mainly because those in the shooting community increasingly recognise the plight of our hares and want to play their part in protecting them. However, around 20% of shooting estates—that is 780—still run organised hare shoots. They typically run across three days and the average take per day is 100 hares. If we add to that some of the more informal hare shoots that take place on farms, especially in Lincolnshire and East Yorkshire, we quickly realise that an assessment of 300,000 hares killed per year is indeed realistic, and if we set that against the estimated population of just 800,000 hares nationally, we see that that is of great concern.​

    A key tenet of all game and wildlife conservation is that we should protect species during their breeding season. That is why we have statutory close seasons on everything from ducks and pheasants through to deer, woodcock and geese. There are also animal welfare issues in targeting species during their breeding season. A baby hare—a leveret—will be dependent on its mother for typically four weeks after it is born, and if its mother is killed, the leveret will perish, which is a welfare concern.

    As long ago as 1892, our Victorian forebears recognised the need to protect hares during their breeding season. The Hares Preservation Act 1892 introduced what was called a close time during the breeding season and it delivered this close time in those days through implementing a ban on the sale of hares or hare meat during the months of March to July inclusive. This 127-year-old law remains in force today, but it predates the advent of refrigeration and freezer technology, and it was also introduced in an era when hares were hunted predominantly for food, not shot, as now, for sport. As a result, the 1892 Act is hopelessly out of date; it is no longer effective. It is, indeed, no longer even enforced. It also leaves in place a peculiar anomaly and legal uncertainty in some areas that a game pie sold from the freezer by a pub cannot be sold during the months of March to July inclusive even though the hare may have been killed during the winter months.

    My Bill would replace the 1892 Act with its ban on sale with a modern-day close season prohibiting the killing or taking of hares during the breeding season. Northern Ireland and Scotland already have such legislation in place; indeed, virtually every other European country that has a brown hare population protects its hares. We in England and Wales are unique so far in failing to do so, and this is an oversight that must be addressed.

    In Scotland, the close season runs from the beginning of February, and I am open to discussion about precisely when the close season should be for England and Wales. My starting point is that at the very least it must replicate the provisions of the 1892 Act and cover the months from the beginning of March to the end of July, but there is a very strong case to have protection at least from the beginning of February, possibly even earlier, since we know that hares are capable of breeding during February, and in practice the shooting estates that still run hare shoots do not really shoot hares during the winter months because they are targeting game birds, and there are also safety concerns in shooting hares in a shoot if they are targeting, for instance, pheasants. What they actually do, when the close season for game birds begins at the end of January or beginning of February, is have another month or two when they run hare shoots; that gives them a commercial income during February and March.

    I should add that I am also open to making provision to license culling in certain circumstances to prevent severe damage to crops, or to have some kind of limited farmers’ defence as provided in other legislation such as the Deer Acts.

    Occasionally, this House passes small but important legislation, which can get forgotten or even neglected over time. Despite multiple better regulation initiatives by Governments of all colours over the decades, Ministers and Whitehall have collectively repeatedly decided that now is not the time to take action. This House has chosen ​not to repeal this hare legislation because it recognises that its intent and purposes are as valid, or more valid, today than ever before, yet this House and successive Governments have failed to take the action necessary to make this legislation effective in a modern era.

    I want to persuade the House that now, finally, is the time to put this right and introduce a modern close season to safeguard our hares, because in January this year the Department for Environment, Food and Rural Affairs identified the rabbit haemorrhagic disease virus 2, which has devastated our rabbit population, in hares for the first time, and estates right across East Anglia are reporting a worrying concern. With the instant die-off of hares and many hare carcasses being found, it is clear that the RHDV2 is having a devastating effect.

    As our hare population—what is left of it—faces this threat, it is essential that we act now to reduce the mortality of our hare population and to afford our hares the protection they deserve.

  • James Brokenshire – 2019 Statement on Councils in Northamptonshire

    Below is the text of the speech made by James Brokenshire, the Secretary of State for Housing, Communities and Local Government, in the House of Commons on 14 May 2019.

    On 29 November 2018 I told the House that I was launching a statutory consultation on the proposal for reorganising local government in Northamptonshire which I had received from seven of the area’s eight principal councils. The councils had submitted this proposal in response to the invitation issued on 27 March 2018 following the recommendations in the independent inspection report on Northamptonshire County Council.

    This locally-led proposal is to replace the existing eight councils across Northamptonshire (the County Council and seven district councils) with two new unitary councils—one for North Northamptonshire covering the existing districts of Kettering, Corby, East Northamptonshire and Wellingborough, and the other for West Northamptonshire covering the existing districts of Daventry, Northampton and South Northamptonshire. The proposal envisaged the new councils being fully operational from 1 April 2020.​
    The statutory consultation closed on 25 January and invited views from councils concerned, other public sector providers and representatives of business and the voluntary sector and welcomed views from any interested persons.

    I have received a total of 386 responses. The district and county councils—except for Corby Borough Council—and councillors and public service providers, including the Police and Crime Commissioner and health partners, generally supported the proposal. Responses from businesses, members of the public, parish councils and community organisations were more mixed.

    This consultation supplements the consultation exercise undertaken on behalf of the Northamptonshire councils by the independent opinion research services. This exercise included face to face workshops, a representative telephone survey of Northamptonshire residents and an open questionnaire.

    Ninety per cent of respondents to the telephone survey agreed that there was a need to make changes to Northamptonshire local government and 74% agreed with the unitary proposal; 83% of the over 6000 individuals who responded to the open questionnaire agreed that there was a need for change, with 67% agreeing that a number of unitary councils should be introduced and 44% supporting the proposal for two unitary councils.

    I have now carefully considered the councils’ proposal, along with the results of the consultation exercises, a report by the Northamptonshire Children’s Commissioner, submitted to my right hon. Friend the Secretary of State for Education and me, on how best to ensure continued improvement of the fragile children’s social care service in Northamptonshire in the context of reorganisation, and all other relevant information and material available to me. I have concluded that the proposal meets our publicly stated criteria for local government reorganisation. If implemented, I am satisfied that the proposal would improve local government and service delivery in the area, has a good deal of local support and the area of each new unitary represents a credible local geography.

    This is on the basis that there is a children’s trust covering the whole of Northamptonshire, which, with my support, my right hon. Friend the Secretary of State for Education is minded to establish, as recommended by the Children’s Commissioner, if the unitary proposal is to be implemented. With such an arrangement children’s social care would not be disaggregated with the trust discharging functions on behalf of both councils. My right hon. Friend will be publishing the Commissioner’s report today. It is also on the basis that work continues to be taken forward in Northamptonshire to do more to integrate adult social care and health services.

    I have therefore decided, subject to the issuing of statutory directions requiring the establishment of a children’s trust and to parliamentary approval of the secondary legislation, to use my powers under the local government and public involvement in Health Act 2007 to implement the proposal. These powers enable me to implement a unitary proposal with or without modification and in this case, having carefully considered all the material available to me, I have decided to make one modification to the proposal.

    This is to extend the period for fully implementing the new arrangements so that the new councils are operational from 1 April 2021. While I recognise that a ​delay in implementation will mean potential savings estimated in the proposal will not be realised for another year, I am clear that the extended implementation period means we can be confident that there will be a safe and effective transition to all the new service delivery arrangements across the whole of the area, including for those crucial services supporting the most vulnerable. Throughout this extended period my Commissioners will be able to continue to support the County Council.

    To support the transition, I have decided to establish shadow authorities. I envisage the May 2020 local elections in Northamptonshire will be elections to those shadow authorities rather than to district councils, with the district elections currently due on that date being cancelled. In line with the approach in the proposal for elections to the new unitary councils, I also envisage the elections to the shadow authorities are held on the basis of three member wards resulting in the North Northamptonshire Council having 78 members and West Northamptonshire ​Council having 93 members. Those so elected would be members of the new councils when these go live in April 2021. Elections to parish councils will proceed as scheduled in May 2020.1 intend to confirm these electoral arrangements shortly after hearing any views the district and county councils may have on this.

    I now intend to prepare and lay before Parliament drafts of the necessary secondary legislation to give effect to my decisions. Establishing these new unitary councils will be a significant step towards ensuring the people and businesses across Northamptonshire can in future have the sustainable, high-quality local services they deserve. I welcome the commitment of all the existing councils and their partners to drive forward this process of establishing new councils and transforming local service delivery. I am confident this will continue.

  • Robert Goodwill – 2019 Statement on the Agriculture and Fisheries Council

    Below is the text of the statement made by Robert Goodwill, the Minister of State for Agriculture, Fisheries and Food, in the House of Commons on 14 May 2019.

    Agriculture and Fisheries Council takes place in Brussels on 14 May.

    As the provisional agenda stands, the primary focus for agriculture will be on the post-2020 common agricultural policy (CAP) reform package. Ministers will exchange views on the new delivery model in the regulation on CAP strategic plans.

    Member states will also exchange views on the agricultural aspects of the Commission’s communication titled “Clean Planet for all: strategic long-term vision for a climate neutral economy”.

    The Commission will then provide an update on the performance of EU agricultural trade after which Ministers will hold an exchange of views.

    There are currently three items scheduled for discussion under ‘any other business’:

    Information from the Netherlands delegation on the judgement of the Court of Justice on organisms obtained by mutagenesis (case C-528/16).

    Information from the Spanish and French delegations on the regulation on the European maritime and fisheries fund.

    Information by the Belgian delegation on the situation in the fruit sector for apples and pears.

  • Penny Mordaunt – 2019 Speech at Sea Power Conference

    Below is the text of the speech made by Penny Mordaunt, the Secretary of State for Defence, on 15 May 2019.

    Well, good morning.

    I am delighted to be here. No, more than delighted to be here. I am honoured be here. Not just to be able to thank RUSI for all it does, but to thank you, and particularly those in uniform for your service.

    And of course to deliver the Sir Henry Leach memorial lecture…

    For all his considerable achievements, he is perhaps best known for his unwavering resolve. He told Margaret Thatcher not only that the Falklands Islands should be retaken, but that they must be retaken, and not everyone agreed with him, but he had confidence in the quality of his personnel. That under-resourced, as even they were then, professionalism and belief in our cause would carry the day, and he wasn’t wrong.

    Maybe if it hadn’t been Henry Leach, we would be a different nation today. Some people think we are. They’re wrong. We still have the right stuff in the Royal Navy and for that matter the British Army and yes, even the Royal Air Force.

    For him, and for his Prime Minister, in deciding that course of action, the principles were clear. Their confidence and resolve created a focus and an effort to assemble that famous task force and get the job done.

    Those two great leaders – military and political – provided reassurance in those troubled times.

    Political turmoil at home, a resurgent left wing, calls on other parts of the Exchequer, a distracted America, sound familiar?

    In troubled times, we search for those great personal qualities in others to lead our nation and reconnect with the ambitions the people of this country feel so strongly and so intuitively.

    Leach and his prime minister articulated a national mission hard-wired into the souls of their nation and the people.

    How were they able to do that? To swell hearts? To focus minds?

    To define what it is to be a patriot?

    Did they use the power of their personal philosophy to mould our great institutions?

    Actually it was the opposite.

    They felt the values of the institutions of our nation so strongly, that their personalities were shaped by them.

    They became the living embodiment of their nation’s enduring values and they were a beacon of freedom to those under tyranny.

    And they inspired courage in others.

    They were moved by tolerance, respect, plurality of thought, justice, compassion and above all, a love of freedom. They clearly saw what Thatcher called: “the primacy of the heart” and they accepted no “makeshifts” as Sir Henry would have put it.

    All of us can understand this because all of us – especially those in public service – have been shaped by those values. Why else would we wish to serve? And when I look round this room on this Spring morning, I wonder what your stories are?

    What has this great nation stamped on your hearts?

    Why do you find yourselves here?

    Why is it that we serve?

    Personally, I can still recall the sight of HMS Hermes leading that task force out of Portsmouth Harbour.

    And as a nine-year-old, I didn’t know much about that scene. But witnessing it, and Thatcher’s resolve, and Leach’s confidence, well I knew Britain stood up to bullies.

    …and I knew it was important that we did.

    It was important enough for some of those ships and my class mates’ fathers not to return.

    I’d encountered courage, I’d seen duty, and I’d seen sacrifice for something greater than ourselves.

    And 37 years later, when I was asked by Major General Julian Thompson to address the San Carlos dinner, the reunion of that task force, well I saw it again.

    And I can tell you the veterans remain to this day as uncompromising in their approach to the enemy as they towards their food and drink…

    I’m going to talk to you today, and in the future about, ships, boats, cyber and all sorts of other things.

    I want you to know however, from the outset, that I understand the business we’re in is primarily about people, it’s about heart and guts, it’s about imagination and belief, vision and ambition.

    And our country, at such a profound cross roads in its story, facing such uncertainty and yes opportunity, needs the values Leach admired like never before.

    Freedom, democracy, rule of law and the rules-based order…

    Our citizens want the nation to be able to affect and improve the world.

    They want us to go out and sort out problems.

    And I know from my previous department, their generosity and their care for others around the world.

    They hate that feeling of impotence when we can’t protect people.

    And they want us to be able to further our national interests.

    And this means they want us to remain a nation with the inclination and the ability to act.

    They want us to influence, to deter and to intervene. And they want us to be able to do this even when that means us standing alone.

    Britons intuitively understand Global Britain and you do too because you’re at its heart. You are the foundation of global Britain.

    You’re the ones with the reach, the connections, the platforms, the security and partnerships.

    Without you, we cannot protect shipping. Without this, trade deals won’t yield dividends.

    Without you to guard peace and security, nations can’t lift themselves out of poverty.

    Without you to combat threats…whatever their shape and size… evil will prevail.

    Global Britain is a protector, it’s a wealth bringer, it’s a problem solver, a life saver and a peace broker. And nothing symbolises our intent and ambition for global Britain and has captured the hearts of our citizens more than our new carriers.

    They are a mighty symbol of our intent.

    The most powerful ships Britain has ever built.

    Nine acres of sovereign territory that will give us the ability to project power from anywhere in the world.

    Whether as part of a discrete operation, in support of land operations or as part of a coalition of allies and partners. They are versatile and they are a global influence.

    In 2010, when I made the case for the carriers, I just pointed to every humanitarian crisis and brewing conflict situation we had ever experienced since we’d had carriers.

    And I challenged people to name one situation in which that capability had not been instrumental in getting a good outcome.

    Sir Henry had only two mini-carriers in his day and I’m sure he is looking down on us with envy.

    Last year our mighty Queen Elizabeth tested out the F35b aircraft at WESTLANT.

    This year it will be returning to the Eastern seaboard to conduct flight trials with our own F35b future fighter.

    And when Prince of Wales joins her in the fleet in the near future…we will have one carrier available at very high readiness at all times…

    And this will match our strategic nuclear deterrent with a conventional one.

    I want to make sure that we make the most of this incredible sovereign capability.

    And that’s why today I can announce that we will develop a new policy that will set out how those ships will deliver for our nation in the years ahead.

    The national carrier policy will lay the blueprint for how we use them to deliver global Britain’s objectives around the world.

    Our carriers are setting the tone for the future Navy that I want to see and they’re instilling confidence, closing deals and protecting the rules-based order.

    And projecting our intent in uncertain and a challenging world.

    …a world that is becoming increasingly complex

    … the challenge of China rising

    …the threat from a Russia resurgent

    …the ever-changing shape of violent extremism and terrorism

    ….the growth of cyber threats…and organised crime

    The grey areas of new weapons and new theatres.

    There are huge challenges ahead of us, and there will be many demands made of us.

    So, we had better be prepared.

    Like Sir Henry, when he gate crashed that emergency cabinet and Thatcher asked him what she could do for him.

    He replied ‘No, Prime Minister, it’s what I can do for you’,

    So, what are we doing to stay ready?

    In the past 12 months we’ve been… training in Norway’s Arctic tundra

    Drug busting in the Arabian Gulf…establishing field hospitals in the South Sudan

    Helping enforce UN sanctions in South Pacific

    And escorting Russian vessels off the premises

    And, silent and undetected you’re maintaining our continuous-at-sea deterrent.

    In all that you do you carry the reputation of Great Britain with you

    …because you influence and you shape the world around you

    …you’re the prototype that other seeks to emulate

    …and partner of choice for our allies

    And I’m proud that you’re strengthening partnerships around the world at all times…

    With HMS Defender supporting NATO while on Exercise Formidable Shield.

    With HMS Montrose and our Mine Countermeasures Force now permanently in the Middle East and a Naval Support Facility in Bahrain – keeping vital shipping lanes open

    With our Royal Navy soon to sail to the Baltic as part of the Joint Expeditionary Force – reinforcing partnerships with like-minded northern European allies

    And with our development of the North Atlantic Joint Operating Area…that will soon guard mile after mile of vital waterway.

    Our people are not just exceptionally brave but also enormously innovative and creative. Today they’re doing everything

    …from devising new environmentally-friendly ways to power headquarters in the field

    …to delivering AI and robotics into every fighting arm

    …courtesy of our new pioneering new Naval X accelerator

    And at the very pinnacle of the pyramid you’ll find the Royal Marines

    …developing Future Commando Force

    In a reimagined global Britain, Defence will continue to be the first duty of the nation

    But it must up to our ambition:

    …maintaining a ruthless focus on its mission

    …becoming more forward deployed

    …and going out of its way to work with friends and allies

    But if our future fleet is to respond to the growing demands, we need to do much more:

    Investment will remain critical

    We have done a great deal to drive out inefficiencies in defence

    But there is more for us to do.

    And today you will hearing about the direction and innovation in the RN, about our new capabilities coming online and being planned.

    But I think we need to get some fundamentals right too if we are going to match the Navy and the nation’s ambition.

    In 2015 we rightly committed to meet NATO commitment to spend 2% of GDP on defence. Understandably people focus on that number. Politicians point to it. And rightly encourage other nations to match it.

    But that’s not the whole story.

    I just want us to briefly recap the headlines from the last three defence reviews. In 1997, the review pledged to deliver 32 destroyers and frigates and 2 Amphibious Assault Ships. In the event, we got the 2 Assault ship…but only six frigates and destroyers.

    In 2010 SDSR, we said we would deliver 2 carriers and 19 destroyers and frigates …of which 6 were Type 45s and 13 were Type 26s. Well we got the carriers. But the 13 Type 26s were reduced to 8 and we’ve ordered 3 of them.

    And in SDSR 2015 we set out a shopping list of 8 T26s, 5 Type 31e, 2 OPVs and 4 ballistic missile submarines. I am determined that remains on track.

    I ask you, what is the point of methodically reviewing threats and tasks, formulating capability and then not delivering it?

    What’s the point of building ships only to mothball them for lack of crew, spares or funds?

    What is the point of costly design and innovation if we only intend to build a handful?

    What is the point of running on old vessels and delaying new ones and running up massive costs in the process?

    If the RN and wider defence is to deliver on the ambitions of our country, then we must tackle both the funding and the political behaviours which constantly undermine it.

    In the coming weeks, I’m going to be saying more about how we build on all the good work and lessons to date, most notably from the carrier alliance.

    To how we ensure Defence sits at the heart of the prosperity agenda.

    To end the vicious circle of unfulfilled SDSRs and more of the same.

    To create a virtuous circle where we recognise that it’s long order books and a steady drumbeat in our yards that strengthens our supply chain and brings down the overall cost of procurement. What’s needed is a closer partnership with industry that gives them confidence to invest and build and us the confidence that we can and must buy British.

    We must recognise that if Britain’s armed forces don’t use it, Britain’s businesses will find it harder to sell it. We have to walk the walk, as well as talk the talk.

    And we must do more to maximise the full value of our resources to build up Britain…not only is that necessary in terms of creating skills and resilience.

    But it’s vital in creating an environment where Defence gets the critical investment it needs.

    Now as I stand before you today, I can’t tell you that The Treasury is going to welcome that message. I cannot tell you that The Treasury will agree with all of my message.

    What I can promise you though, is that The Treasury will hear this message.

    We know that Defence must play a much greater role in the whole of government’s prosperity agenda.

    WHAT THIS MEANS FOR INDUSTRY

    What does all this mean for industry? It means we’re looking to you to match our ambition. To get the ships we need, we need the shipbuilding. That means improving the relationship between industry and Government

    A few years ago, Sir John Parker’s report laid bare the challenges. The old days of changing requirements on a whim and being vague about what we need in the long-term, that must end our Recent Acquisition Review. Took a sample of live MOD programmes.

    It found on average that the initial estimated cost of a project rose by 35 per cent and delivery time by 46 per cent. That’s not just costing us time and money…that is damaging our operational effectiveness.

    So my challenge to industry is to become more sustainable. To do more to deliver value for money. To stick to fixed project budgets and to innovate in the way you build. To up your competitiveness…building exportability in as standard and to deliver faster…the days of taking decades to build a ship are over.

    I know you’ve been told this before, but what’s different now is that both you and I recognise that the politics also needs to change.

    And we have to continually learn.

    Which is why I’ve commissioned work examining the lessons from the Mars tanker procurement, especially for our UK supply chain.

    Britain already has incredible shipbuilding heritage but I think we should prepare for a fantastic future, too.

    Aircraft Carrier Alliance showed that Britain has what it takes to produce first class fifth generation ships.

    Just as the lessons of Type 26 is that we have the capability to design frigates that are the envy of the world.

    We need to learn these lessons as we bring in our next generation of Fleet Solid Support Ships…our logistic backbone. So it’s time for a sea change in industry as well. Let’s replace Sir John’s old vicious cycle with a virtuous circle.

    And let’s remember Sir Henry’s favourite words:

    The sea endures no makeshifts. Discipline, courage and contempt for all that is pretentious and insincere. These are the teaching of the ocean and the elements – and they have been the qualities in all age of the British sailor.

    As we prepare the next chapter for the fleet…

    As we go into the next CSR.

    As we transform defence

    Let’s have some honesty about what it takes.

    Let’s have some honesty about what it costs.

    Let’s have some confidence about its value and some rigour in the planning.

    Let’s have some excellence in our partnership and some clarity in our mission.

    As your Secretary of State all I ask is for your help in that task.

  • Liam Fox – 2019 Speech to the Institute of Government

    Below is the text of the speech made by Liam Fox, the Secretary of State for International Trade, on 15 May 2019.

    Good morning everyone.

    When people talk about, or write about, the Department for International Trade, they tend to do so in rather vague terms about what they call ‘trade deals’.

    While trade policy is an important part of what we do, it accounts for less than 20% of our total staff.

    As an international economic department we are responsible for helping sell UK goods and services to the rest of the world, negotiating market access for UK exporters, assisting outward direct investment for UK companies into overseas markets and for foreign direct investment into the UK.

    So I am very grateful to the Institute for Government for providing this opportunity to set out how DIT came into existence, its current role and its future ambitions.

    And I am proud to lead a department which has a direct and measurable impact on our prosperity.

    In 2017/18 alone, we helped UK businesses export goods and services worth around £30.5 billion.

    Using analysis by the Institute for Economic Affairs, it is estimated that this could potentially generate around £10 billion for the Exchequer.

    Despite a challenging global economic climate, British exports now stand at a record high of £640 billion – that’s a year-on-year increase of 3%.

    Since the Referendum alone, UK exporters have sold around £1.7 trillion of goods and services to the rest of the world.

    What’s more, our efforts to keep the UK in the global spotlight as an attractive place to do business has helped stock levels of foreign direct investment hit another record-high of £1.34 trillion.

    This has helped generate around 1,500 new jobs across the country each week.

    Between 2016 and 2018 we supported more than 3,500 inward investment projects, creating and safeguarding over 170,000 jobs.

    And the UK is the number one destination for foreign direct investment in Europe and third in the world last year behind only China and the United States.

    It actually seems remarkable to me that three years ago DIT did not even exist.

    When I was asked to set up the new department by the Prime Minister in 2016 we had nothing.

    No desks, no phones, no IT, no office and no staff.

    In fact, on day one I was 25% of the department!

    Today we are a department of nearly 4,000 people, led by an excellent Permanent Secretary in Antonia Romeo and equally excellent Chief Trade Negotiation Adviser, Crawford Falconer.

    The UK stands ready to implement an independent and visionary trade policy for the first time in more than 40 years.

    It is truly a pivotal moment for the country, and I am delighted to say that we are starting from a position of strength.

    I wanted this morning to take a step back, as Bronwen says.

    How did we get to this point? Where did we start from? And what lessons does it have for the future?

    When I became Defence Secretary in 2010 we were faced with reshaping a dysfunctional Ministry of Defence in real time – with £39 billion inherited departmental overspend, a 7% budget cut to be implemented to help reduce the government deficit, two military conflicts in Afghanistan and Libya, a strategic defence review that had not been conducted for 12 years and the loss of around 37% of our civil servants as a consequence of the above.

    People

    And this experience was crucial when it came to creating a new department.

    While we needed to develop our policies, our strategy and direction, as well as building the very infrastructure from which everything else flows – and all in a very short space of time – we were free from the limitations of someone else’s structures and constraints.

    We knew we had to be clear about our purpose from the outset.

    We had to find a way to incorporate existing organisations like UK Export Finance, our export credit agency.

    So we organised ourselves around three very distinct pillars: trade policy, including trade agreements; investment promotion; and export promotion.

    And everyone in the department belongs to one of these. And each of the pillars is owned by a dedicated Minister, and a dedicated Civil Service Director General.

    We also had to create an organisational plan to implement these three pillars, build HR and finance capabilities, find office space, and – crucially – find the very best people available to fill them.

    Setting up a Departmental Board, including recruiting a team of Non-Executive Board Members led by the excellent Simon Walker, was crucial as it acts as the central coordinating structure of the entire department.

    And the Board, which I chair, meets around 10 times a year.

    We just held our 27th board on Monday.

    It plays a fundamental role in challenging and scrutinising the department’s business, while simultaneously setting our strategic direction and supporting my Ministerial team and senior Civil Servants in delivering our long-term goals.

    We publish our agenda to our staff worldwide before the Board sits so they can comment and feed into it, and we inform them of our discussions and decisions afterwards both by email and by video.

    But even with this in place, it was clear that we had a problem: the UK had not operated its own independent trade policy for more than 40 years and there were very few civil servants or Government Ministers with direct experience in this highly technical field, and no collective Whitehall memory on which to draw.

    All of this could seem daunting, but I actually think that the uniqueness and genuinely ground-breaking nature of the challenges fuelled the excitement and expectation of what lay in store for the department.

    But pulling together this team in such a short space of time required a great deal of cooperation across Government.

    Now some might think that with more than 430,000 employees scattered across the country and internationally the Civil Service is unwieldy.

    Actually, nothing could be further from the truth.

    At its best, few organisations are as dynamic and quick to react as the Civil Service.

    So when the call went out for help in staffing DIT, other Government departments did all they could to release the people with the right skills.

    And our team worked frantically over the summer so we could hit the ground running when Parliament returned from the summer break in 2016.

    There is not a day goes by when I am not impressed by the dedication, drive and professionalism of those who have helped create DIT, and delivered world-class advice and delivered out objectives as the structures bedded in.

    Learning

    However, while we had some very experienced people from the outset, they did not necessarily come with the policy expertise that we required.

    That’s why we made it an early priority to reach out to the people who already had the expertise that we needed, holding consultations with trade experts around the world.

    We were able to draw on the skills and expertise from strategic partners such as Canada, Australia and New Zealand who advised us, for example, on establishing our own trade remedies function.

    And there was a great deal to learn, with policy details like procurement, intellectual property, tariffs or rules of origin requiring a whole new level of understanding, or a different perspective in the context of an independent UK trade policy.

    That’s why we unveiled the International Trade Profession last year.

    This is the newest Civil Service profession and is designed to recruit and train a new generation of international trading talent.

    More than 2,500 civil servants have joined so far and are being equipped with the skills they need to make our country the great trading nation that we can be.

    Another challenge was the need for DIT to become a credible, data-driven, intelligence-led and more efficient organisation.

    This meant developing our analytical, statistical and data science capabilities, and rolling out a new range of surveys and data collections to inform the development of trade and investment policy.

    We laid the groundwork to build solid relationships with the ONS and HMRC to deliver the necessary trade statistics, and we pushed forward with the OECD and WTO cutting-edge initiatives developing new measurements of digital trade and Trade in Value Added.

    I remember when we started commenting on the lack of data that seemed to be there and I remember saying that if I made decisions when I was still practising medicine on the basis of the same level of information I would probably have found myself up in front of the General Medical Council.

    But we have built that capability and are continuing to build it today.

    We made sure businesses were involved in helping shape the department from the outset by opening a channel of communication to understand what mattered to them, while at the same time opening the eyes of many companies to the potential of what was coming down the track.

    And we expanded our World Trade Organisation mission in Geneva as a very early priority in fact within days, to lay the foundations for when we take up our seat as independent member.

    Vision

    So having got the right people in the right places, we needed to set a clear direction for the department.

    So in my first major speech as Secretary of State I made the case in Manchester for free trade and an open and liberal trading environment and warned about the dangers of protectionism.

    I said there that “free trade has, and will continue to, transform the world for the better, and the UK has a golden opportunity to forge a new role for ourselves and importantly for the rest of the world.”

    I believe this passionately and setting out this intellectual creed from the start was essential in shaping DIT’s culture and its direction.

    But in a department the size of DIT, with a presence in 108 countries, political direction by my excellent team of Ministers and myself can only go so far on a day-to-day basis.

    So we wanted to create a set of values that went to the very heart of everything we do.

    We called it the DIT Spirit.

    Central to this is our “vision to create a UK that trades its way to prosperity, to stability and to security”.

    Our values of being Expert, Enterprising, Engaged and Inclusive guide how we deliver our vision and what we expect of one another.

    These values are in turn underpinned a raft of behaviours that we expect all staff to model.

    By setting out our values so early and clearly, we have been able to build a culture of trust and purpose which, in less than three years, is I think established, coherent and cohesive.

    This is reflected in our People Survey results, which have shown consistent improvement in the level of employee engagement across the department.

    If, of course, there’s a downside, it’s when the Treasury tell me we’ve got a very high application to job ratio and therefore there’s no free-market case to see our salaries go up!

    Senior leadership team

    Now the efforts of our early senior leadership team to build capacity at pace were quite remarkable.

    A single Departmental Plan needed to be built, publicly outlining our core strategic objectives, and how we were going to achieve them.

    Trade and investment sector teams, spread across several organisations, had to be brought together: from UKTI, UK Export Finance, the Trade Directorate team at the Department for Business, Innovation and Skills, and overseas teams from the FCO.

    Other teams such as the Trade Policy Group needed to be scaled up very quickly. And teams that didn’t even exist, including our corporate functions such as the Ministerial Strategy Directorate, Private Offices, Finance, HR and Communications functions all needed to be built.

    Future

    Everyone involved in DIT has been in some way involved in something ground-breaking.

    As the Institute for Government has said, the UK is unique in carrying responsibility for export promotion, export finance, trade remedies and international negotiations in a single department.

    We also carry export licensing on top of that.

    This sets us apart from so many of our strategic partners such as Australia, or Canada, the EU, or the United States.

    Indeed, across the non-EU G20 countries only China and Indonesia have a separate trade department. Which puts us in a strong position.

    We are an international economic department of state, which has brought together skillsets in trade promotion, trade policy, foreign direct investment, outward direct investment and export promotion in one place.

    We also convened The Board of Trade for the first time in 150 years to champion exports, inward investment and outward direct investment, but most importantly to ensure that their benefits are spread across all parts of the United Kingdom.

    We will be meeting tomorrow in Belfast and I’ve been fortunate enough to have senior individuals from across the political parties with experience, Patricia Hewitt, for example, former Secretary of State at DTI, is one of our members, Brian Willson also has joined us.

    We have also established a network of Her Majesty’s Trade Commissioners who are responsible for our nine global regions.

    They were selected from the very best talent, across both the public and private sector, for their expertise in specific markets from China to the US and everywhere in between.

    Their job, alongside our Trade Policy Group and our partners across the world, is to secure the best market access, trade and international relationships that the UK will need as demand from growing markets in Asia and growing technology change over the next decade and more.

    And our trade commissioners set priorities for wide geographical areas and promote the department’s work overseas, but they are responsible for their own regional trade plans, setting out our ambitions in those regions for exports, outward direct investment and foreign direct investment back to the UK.

    Now, there were those, and probably still are those, who believe that such a level of autonomy given by a Secretary of State to our Trade Commissioners was, to use the words of Yes Minister, “a very brave decision, Minister”.

    But I think our trust has been shown to be very well placed.

    And I’ve always said there’s no point in having the most intelligent and most intuitive staff if you don’t allow them to use their intelligence and their intuition to be able to serve the organisation better.

    As a department we’ve have continued to run the Exporting is GREAT campaign to raise awareness among UK businesses about how exporting can help firms to grow.

    We have launched the online great.gov.uk platform which has, among other things, a live directory of exporting opportunities.

    For the first time anywhere, a Government – this Government – is putting business directly in touch with potential customers overseas.

    Some 149,300 exporting opportunities have been advertised since the service’s launch to UK businesses.

    And we are continuing to support the excellent work of UK Export Finance, the world’s first credit agency which this year celebrates its 100th birthday.

    Its ground-breaking and innovative work remains as relevant today as it did when it was first created, with some £50 billion worth of financing available in 65 international currencies.

    Last year we launched the new Export Strategy to make Britain a 21st century exporting superpower.

    Through this we are informing, connecting and financing businesses of all sizes in a bid to increase our exports from 30% to 35% of our GDP moving us towards the top of the G7.

    One thing that struck me, however, is that not everyone understands the value of what we sell.

    So, this morning’s check you’re awake quiz: if I were to ask you to rank the following sectors in order of their estimated export contribution to the UK economy, with the greatest at the top, what would you say?

    So you have insurance and pensions, whisky, defence, and education. Where do you rank them from one to four?

    Well, it may surprise you to learn that based on the latest figures education would come top with £19.9 billion.

    Based on the latest ONS figures, the total export of insurance and pension services from was just behind at £18.8 billion.

    The defence sector comes in at £5.9 billion in the same period.

    And whisky exports, according to the ONS, were £5 billion last year.

    Now, drawing comparisons is always a minefield and I want to make clear that while these are official figures, I’m not strictly comparing like with like.

    But I think it gives us an idea of the huge diversity and strength of the UK’s exports – and not always in sectors that the public might readily think of as being exports for the UK.

    We’ve also secured a deal with the WTO to remain within its Government Procurement Agreement, providing access to the £1.3 trillion a year’s worth of procurement opportunities in the global public tender market in a no deal scenario.

    We have agreed a no deal tariff policy across Whitehall to minimise costs to business, mitigate price impacts on consumers, and support UK producers against unfair trade practices. In the event of a no deal exit, 87% of total imports to the UK by value will be eligible for tariff-free access.

    We have also set up a Trade Remedies Investigations Directorate to ensure the UK can continue to provide support to domestic industries to counter unfair subsidies or dumping. And we have worked to ensure we have bilateral agreements in place to ensure continuity of trade with key markets currently covered by existing EU trade arrangements worth £71 billion, whether that is in the event of no deal, or probably more importantly after the proposed implementation period. I could go on, but I think you get the picture.

    Conclusion

    What we have achieved in three years is working for Britain and I would just like to say that I’m enormously proud and grateful to my team.

    We are helping businesses access new markets, with new tools and new technologies to improve the living standards of people around the world, who are benefiting from greater choice at lower prices.

    This in turn helps drive global prosperity, contributes to global stability and security, and underpins the Government’s agenda for a Global Britain.

    We’re on the cusp of striking out with our own trade policy for the first time in more than four decades. When we do so we will have the freedom to shape a better future, not just for ourselves and our own people, but for the wider world too.

    As I’ve often said, we don’t see trade as an end in itself; we see trade as a means to an end.

    It is a way by which we can spread prosperity.

    Spreading prosperity helps underpin social cohesion; social cohesion underpins political stability; and political stability is the building block of our collective security.

    And it’s a continuum that cannot be interrupted without unwanted consequences. All we require is the courage to seize the opportunities that are out there and my department stands ready to help the country do just that.

    Thank you.

  • John Glen – 2019 Speech to Equifax Conference

    Below is the text of the speech made by John Glen, the Economic Secretary to the Treasury, on 16 May 2019.

    It’s a great pleasure to speak to you today.

    Technology and innovation is one of the most exciting and uplifting parts of my brief as City Minister and that’s particularly true right now with the political situation.

    The digital revolution rumbles on at breakneck speed, throwing up all sorts of interesting questions for the future of financial services…

    How do we protect consumers and investors without stifling growth and enterprise?

    How can technology help us balance the needs of an ageing population against the aspirations of young people?

    And how do we ensure that the most vulnerable members of our society aren’t locked out of the opportunities or left behind by the pace of change?

    Our answers to these questions, and others like them, will shape the strength and success of our economy every bit as much as Brexit, if not more so.

    It’s not a job for government alone. Government can play a convening role; but it’s a shared effort with business and academia.

    So the subject of today’s conference – Making Smart Decisions Together – is apt, and not just from a technological standpoint.

    I congratulate Equifax for putting together a programme that’s open to the social as well as the financial opportunities that arise from the advent of Open Banking, Big Data and Artificial Intelligence.

    What I’d like to do this morning is frame these discussions by outlining what the government is doing to ensure the UK remains at the forefront of innovation in these areas; and what we’re doing to help direct this technology towards the challenge of financial inclusion.

    Throughout history, there have been moments when technology takes a great leap forward…

    The invention of the World Wide Web – thirty years ago – was a case in point.

    Tim Berners-Lee’s supervisor famously described his proposal as “vague but interesting”, which must surely be the understatement of the century.

    Certainly, it has transformed the way we trade, bank, invest, borrow, pay and donate money, as well as how we work and communicate with one another.

    And the UK has been right at the heart of this transformation.

    In fairness, our geography helped.

    Wall Street is 2,500 miles from Silicon Valley – but on this side of the pond, you can walk from the Square Mile to the Silicon Roundabout in about twenty minutes.

    But, just as importantly, we had the connectivity and the skills necessary to flourish.

    The global reach of the City of London – allied to our nationwide strengths in research and innovation – proved a truly winning combination.

    Today, the UK is regularly voted the best place in the world to start and grow a FinTech business….

    …ahead of New York.

    …ahead of Paris.

    …ahead of Hong Kong, Singapore and Shanghai.

    Savour that for a moment… it’s a real tonic for those of us who believe Britain still has what it takes to tread a bold and ambitious path in the world.

    We have something very precious indeed, and the government wants to do everything we can to nurture the formula behind our success.

    We want our financial services sector to be the most competitive and innovative in the world.

    One that continues to fuel jobs and growth, while delivering choice and value for customers.

    And to achieve that ambition, we need to be ready to take advantage of the next great technological leaps as and when they arrive.

    Open Banking is a case in point.

    Two years ago, the Competition and Markets Authority published its ground-breaking Retail Market Investigation Order.

    It requires the nine largest banks in the UK to build standardised systems, so customers can share their financial information with FinTech firms quickly and securely.

    This has kick-started a transformation in retail banking.

    In November last year, a beauty salon in Kent became the first small business to apply for a loan in the UK using Open Banking.

    The lender, Iwoca, was able to use the customer’s banking transaction history to speed up the decision-making process – funds were released within an hour-and-a-half.

    Likewise, M&S Bank is using Open Banking to simplify its mortgage application process: now the data is readily available, most customers are no longer required to provide traditional bank statements.

    We can expect to see a growing number of new products and innovations appear as Open Banking gains traction.

    But this is nothing compared to the possibilities of Artificial Intelligence and machine learning.

    This data-driven revolution has already arrived – or at least, that’s what Alexa told me to say this morning.

    Of course, Equifax is itself one of the pioneers.

    Your patented NeuroDecision machine learning technology is paving the way for the use of advanced neural network modelling in credit scoring.

    And whether it’s banks using chatbots to provide personalised customer services…

    …investors drawing on big data analytics to make faster and more accurate market forecasts…

    …or insurance companies employing algorithms to spot financial crime…

    …no part of the sector will be left untouched.

    The UK is currently ranked first in the Government (AI) Readiness Index, based on our ability to absorb and exploit the potential of this technology.

    We’re already home to some of the most established names in the business, like Deepmind and Swiftkey.

    But we’re also home to the rising stars…

    Like Cleo, a London-based start-up which uses AI to analyse people’s spending habits to help them better manage their money. Founded in 2016, it now has 600,000 users across the UK and North America.

    And Onfido, which uses photo recognition algorithms to help companies verify their customers using live images. Established by three Oxford University graduates, it now employs 200 people in five countries.

    (PWC) predict that by 2030, (AI) could boost our national (GDP) by 10%.

    But this £230-billion opportunity won’t come about by itself.

    That’s why the government’s (AI) Sector Deal is bringing together almost £1 billion’s worth of contributions from government, industry and academia to unlock this potential.

    Together, we’re seeking to attract the best and the brightest from around the world with our new Turing (AI) Fellowships…

    And we’re investing in home-grown talent by creating more than 1,000 (AI) PhD and Masters places at universities across the country.

    Meanwhile, our pioneering Centre for Data Ethics and Innovation seeks to ensure the benefits of this technology are felt evenly across our society.

    This leads me to the crux of my message this morning.

    Digital innovation can’t just be about providing wealthy people with sophisticated products and services.

    If that’s all we achieve, then we will have failed to grasp the full potential of this technology.

    Because the real opportunity before us is to bring about a stronger and more resilient financial sector – one that caters for everyone in our society.

    I’m not trying to be all touchy-feely.

    I’m a red-blooded capitalist. I believe in the power of markets to lift people out of poverty and drive our individual and collective prosperity.

    But the hard truth is that a growing number of people feel like our economy doesn’t work for them, or their families.

    I encounter examples at my constituency surgery every week.

    Young people who can’t get on the housing ladder.

    Single mums and dads struggling with the costs of pay-day loans and rent-to-own schemes.

    Older people worrying about how to meet the cost of care without selling their home.

    My view is simple.

    Government and industry has an obligation to put this right, and to ensure everyone can access safe and affordable forms of credit that are appropriate to their needs.

    For our part, the government is directing £55 million from dormant bank accounts to help address the supply of affordable credit.

    This money will be arranged through a new independent organisation – Fair4All Finance – which will be fully operational in the autumn.

    In terms of the role for business, the government doesn’t want to mandate firms to provide products and services…

    Rather, we want to encourage lenders to think about how technology can help vulnerable individuals tell a more convincing story about their financial integrity, so they can access the normal financial choices that most of us take for granted.

    Take housing as an example.

    Many people who rent accommodation go on to face problems getting a mortgage because they have a low credit score.

    In 2017 we launched the Rent Recognition Challenge to find a simple way to record and share rental payment data with lenders and credit reference agencies.

    It was a ‘Dragons Den’ style competition, backed by a £2 million prize fund.

    One of the three winners – Bud – is using its share of this money to build an artificial-intelligence driven rental recognition tool which automatically detects when an individual is paying rent and prompts them to get the payments verified.

    It also takes advantage of Open Banking by allowing lenders to integrate this service into their apps, so people can use the data when they apply for a mortgage.

    This for me is indicative of the real power of FinTech – products that deliver a social as well as a financial benefit.

    Following on the success of the Rent Recognition Challenge, we are launching the Affordable Credit Challenge.

    We want to create a whole new market of products to serve credit unions and other social lenders – ones that are tailored to the needs of this diverse sector and the communities they serve.

    Applications open this summer, and I’m looking forward to seeing what ideas emerge.

    Of course, these are just two examples.

    Financial inclusion is a complex issue.

    But as the digital revolution continues, I have faith that it will offer more and more solutions.

    The only limit is whether we have the attitude, aptitude and ambition to make them most of the opportunity.

    I’m optimistic that we have, because every time I attend events like this, I’m reminded that the dynamism and energy of our financial services sector is alive and kicking.

    And I’m encouraged that together we can help tackle some of the great financial challenges of our time.

    So I wish you every success in your discussions today.

    And as we look to the growing opportunities for FinTech, let me assure you – the government is there to support you every step of the way.