Category: Speeches

  • Elizabeth Truss – 2016 Speech at the National Farmers’ Union Conference

    Liz Truss
    Liz Truss

    Below is the text of the speech made by Elizabeth Truss, the Secretary of State for the Environment, Food and Rural Affairs in Birmingham on 23 February 2016.

    Farmers here in Britain have faced a tough year.

    We’ve seen:

    – World demand hit by slowing Chinese growth and the continuing Russian import ban.

    – The highest wheat yields on British farms for 25 years and milk production at a 20-year high – but sharply falling prices.

    – Pork prices at their lowest for eight years; lamb, poultry and sugar all down a long way.

    – The strong pound pulling in imports and magnifying those global trends.

    – Farmers’ incomes have been squeezed; they are expected to be down by half in dairy.

    And in the north of England, farmers are still coping with the consequences of the serious flooding.

    In the face of these challenges, we could just take cover and hope things get better soon.

    But I know that is not the attitude of British farming. Despite the fact prices are low, every week I meet people full of new ideas for taking forward this great industry – and ideas for managing the volatile world we face.

    I share their confidence in a positive future for British farming – and with very good reasons.

    – New talent, innovation and science are energising farming.

    – New opportunities are emerging as international markets open up and consumers change their tastes.

    – We are reducing the burden of regulation.

    – We are investing more in building our resilience against the threats of flood and disease.

    Action in all these areas and confidence in the future are at the heart of the 25-year plan for food and farming we will be publishing shortly. It will detail how we will attract even more skilled people to the industry, build the British brand and increase exports. And it will give farmers the tools to improve productivity and competitiveness so the future is sustainable, profitable and world-leading.

    I would like to thank the NFU and everyone in the industry who is supporting and contributing to this long-term vision for success.

    Science and innovation

    We know Britain already has some of the world’s most innovative farmers and scientists. Their breakthroughs are what will make this industry a world leader – and we want to turbocharge their ideas.

    That is why over the next five years, we are doubling Defra’s capital investment in science to £130million.

    And we are investing another £80million across government to develop research centres for livestock, crop health, data and precision engineering. The Agrimetrics data centre, which we launched in October, is working on projects like predicting and monitoring cereal crops and pest risks.

    The Food Innovation Network, announced by the Prime Minister last summer, will bridge the divide that too often exists between businesses and researchers so the latest innovations lead directly to improvements on farms and production lines.

    Talent

    There is a new generation excited about farming. It is the fastest-growing subject at university, with a 4.6% increase in student numbers last year. There are now more than 19,000 people studying agriculture and related subjects.

    Farming can be proud of what it is doing to attract these ambitious people – what a massive vote of confidence in the future.

    I met students at Cirencester earlier this month. They told me about the opportunities they see in farming – like new technology, increasing sustainability and adding value through the food chain.

    Growth at the Royal Agricultural University is being driven in large part by a 44% increase in female students. Nationally, we are seeing more and more women come into the industry. By opening itself to the widest pool of people, this great industry is harnessing all the available talent.

    Developing the skills the industry needs is central to our 25-year plan. One of our manifesto commitments is to treble the number of apprenticeships by 2020. The Food and Drink Federation have already committed to this target. I hope the farming industry will follow suit.

    Currently, there are 1,000 apprentices in farming and 2,100 in horticulture. The government’s new levy which comes into force in April 2017 will bring the biggest funding for apprenticeships ever seen and I strongly encourage people in the audience today to make sure their businesses benefit.

    New opportunities

    We will need the experience and the expertise of today’s and tomorrow’s farmers to take advantage of the new opportunities.

    The market-access deals I signed in China in 2015 will bring our farmers around £40million a year of potential sales for barley and pig’s trotters.

    And after a painful 20 years following the disaster of BSE, we are putting British beef back where it belongs, at the top of menus around the world.

    Last October, Canada announced it was lifting its ban. And we are making good progress with the US and Japan, which together would bring an estimated £40million a year in beef exports.

    In January, we launched the Great British Food Unit, bringing together expertise from Defra and UKTI in a single location to give advice and practical help to exporters.

    Our Great British Food campaign is championing the industry in Britain and across the world. Farmers are at the forefront of this campaign – people like Robert Craig, dairy farmer of the year in 2014 and Patrick Harte of Cornerways Tomatoes.

    The AHDB is now able to celebrate the British provenance of our food in its campaigns and will be running promotions for home-produced meat over the coming months, supporting the 2016 Year of Great British Food.

    Government is now buying more British food as a result of the Bonfield reforms. The Ministry of Justice’s new £500million contract for prison meals will use the balanced scorecard, creating a level playing field for British producers.

    And from this April all 30 million cartons of UHT milk served annually to prisoners will be British rather than from overseas for the first time in years, thanks to the supplier, Bidvest, using the balanced scorecard.

    Across the public sector – places like schools, hospitals, military canteens and government departments – we will be able to buy around an extra £400million of British food every year that we used to source overseas.

    Changing tastes

    The opportunities ahead are about changing tastes as well as new markets.

    The Family Food survey, which we released last week, shows how what we eat has moved on since the 1970s.

    As a great fan of British butter, I’m very happy at the revival in its fortunes which the survey shows – we now eat far more butter than all the low-fat spreads and margarine put together. Fruit juice, fresh fruit and veg as well as breakfast cereal have all surged – as has yoghurt, up more than five-fold since the 1970s.

    Businesses like Yeo Valley in Somerset are responding to these changing tastes. It now produces 2 million yoghurts a week, adding value for its own farms and for 90 others in the south west.

    Thanks largely to the efforts of the NFU, closely supported by George Eustice, more supermarkets are buying British – like Tesco, who will be sourcing all the milk for their own-label yoghurt from British herds. And Marks and Spencer’s will be sourcing all of its cheddar from Britain.

    Our go ahead businesses also include vegetable growers like Hammond Produce, who set up a Garden of Innovation in Nottinghamshire jointly with Bakkavor to provide a showcase for their novel produce to go into ready meals.

    Investment and managing volatility

    The British flair for innovation helped the food industry attract more foreign investment in 2014 than the rest of manufacturing put together.

    We have also seen strong investment in farming. Thanks to high-quality management, this is starting to show through in rising productivity.

    And although we cannot control market volatility, we can give farmers improved tools to manage it.

    Last year, the NFU had two major budget asks – certainty around the annual investment allowance and improved tax averaging.

    Because this government backs British farming, we have delivered those reforms. From April this year, farmers can average profits over five years instead of two. Also from this year, we are introducing a permanent annual investment allowance of £200,000.

    There are other actions that could help smooth out volatility. We are drawing up practical options for creating new derivatives markets. That means cooperating closely with the AHDB’s volatility forum, with farming, processors and the finance sector.

    Reducing the burden of regulation

    We are fundamentally re-engineering the way we work with farmers to reduce the burden of regulation.

    As we re-shape Defra and its organisations, the Environment Agency and Natural England will be working to the same boundaries so it will be much clearer for farmers who they need to talk to.

    By the end of this parliament, we will have saved businesses £470million of unnecessary costs.

    We have already got rid of lots of unnecessary blockages in the planning system and we will go further with the Rural Planning Review we launched earlier this month. It is looking at how we can streamline the development process in areas like farm shops, polytunnels and farm reservoirs.

    Our new Single Farm Inspection Taskforce will start work in June. By better use of data and technology like satellite imagery and by coordinating visits, we will reduce the number of inspections by at least 20,000 a year in this parliament. Added to the 34,000 cut since 2010, that will mean we have reduced the number of visits by over 50,000 a year.

    The single farm helpline, which we set up in September, is saving farmers hassle. Over 60% of queries are now dealt with by the first person the caller talks to– they do not get shoved from team to team.

    Europe

    As I have said previously, the current CAP is the most complicated ever. I want to see simplification in ecological focus areas, cross-compliance and inspections and far better use of technology.

    And I want the three-crop rule abolished. I have heard from farmers in Hampshire and Northamptonshire how it is adding 10% to their costs – all for a scheme that does virtually nothing for the environment.

    I want to see more decisions made at national and local level in areas like pesticides and environmental stewardship.

    I believe that by voting to remain we can work within a reformed EU to reduce bureaucracy and secure further reform while still enjoying the significant benefits of the single market which gives us access to 500 million consumers. We are able to export our high quality products freely without the trade barriers we deal with elsewhere and with a say in the rules.

    Food and farming is our largest manufacturing industry employing 3.8 million people. Sixty percent of our food and farming exports are to the European Union, bringing in £11billion.

    At a time of severe price volatility and global market uncertainty – I believe it would be wrong to take a leap into the dark. The years of complication and risk caused by negotiating withdrawal would be a distraction from our efforts to build a world-leading food and farming industry that brings jobs and growth to Britain.

    The new settlement the Prime Minister has secured gives us the best of both worlds and I am proud to be part of the Government that it is delivering on its commitment to have an in out referendum.

    I believe we would be stronger, safer and better off in a reformed Europe but ultimately it will be for the British people to decide.

    Rural Payments

    The complexity of the CAP has unfortunately caused real problems in the basic payment scheme. The Commission were still making changes in February 2015, which was far too late.

    When farmers are already facing price pressures, I fully understand the concerns of those who have not yet received payments.

    It is vital we do the calculations properly or we could face huge fines from the EU. Disallowance is already running at £70million a year, money we should be investing to improve the growth prospects of British food and farming.

    I have been regularly monitoring progress with Mark Grimshaw and making sure he gets all the support he needs.

    Under his leadership, the RPA has been working seven days a week with between 800 and 1,000 staff processing applications. They have entered and checked more than 80,000 claim forms.

    As a result of their efforts, by last weekend we had paid over £1billion to nearly 71,000 farmers, four fifths of those eligible.

    We are on course to make almost all payments by the end of March.

    For farmers who have not been paid, we will continue to work with the banks so they are able to access finance.

    We also have a hardship fund, which has advanced BPS payments to 268 farmers, worth an average of £16,400.

    I know there have been issues in areas like allocating land across commons and in cross-border claims, which will be speeded up when new systems for exchanging data with Scotland and Wales go live in April.

    Now that we have entered all the data on our system, the 2016 application round will be much simpler, particularly for people who do not need to make any changes. Farmers will be able to apply online this year, and that will include land and entitlement transfers. And of course, for those who need it, we’re retaining a paper option.

    The window opens in early March and farmers will have until May 16th to finalise claims.

    We have been making separate payments to those facing exceptional difficulties, including £26.2million in one-off support for the dairy sector.

    The Farming Recovery Fund to help flood-hit businesses get up and running again is processing more than 80% of applications in less than 10 working days. So far, it has approved nearly £1million of claims at an average of £9,100 per farmer.

    Resilience

    While we are getting payments out as quickly as possible and helping those facing immediate challenges, we will not lose sight of the need to continue building confidence in the future.

    The 12% increase we secured in Defra’s capital budget means we can invest more in flood defences and resilience against animal and plant disease.

    We are strengthening protection for a further 420,000 acres of farmland by 2021. On top of the 580,000 acres we protected in the last parliament, this will mean 1 million acres better defended in a decade.

    We are upgrading laboratories and other facilities at Weybridge to fight animal disease – something too many people in this hall have had to confront, whether it is avian flu or, 15 years ago this week, foot and mouth.

    Bovine TB is the biggest threat we face and I am 100% committed to defeating it. Our comprehensive 25-year strategy is making real progress – in fact, we’re on course to declare half of England TB-free by 2019.

    That success is in large part due to the efforts of farmers who have gone out night after night, often in the face of blatant intimidation, to make the badger cull a success. Thanks to them, all three culls – in Dorset, Gloucestershire and Somerset – met their targets in 2015. It is these farmers who are giving hope to a whole industry.

    But this is no time to ease off. I want to see culling expanded across a wider number of areas this year. The Chief Veterinary Officer’s advice is that this is the only way to secure the full benefits of our comprehensive strategy.

    And we will fund an expanded TB advisory service that farmers have been calling for so it is available throughout the high-risk and edge areas.

    Whatever our opponents may say, we know we are doing the right thing. We are pursuing a strategy that has worked in Australia and is working in Ireland and New Zealand.

    We will not rest until we have eradicated this devastating disease.

    Conclusion

    Bovine TB is one of the many challenges this industry faces. And I recognise these are not easy times. That is why this next year is such a vital period. We will need to work closely together to make sure farming has the confident and profitable future it deserves.

    British food and farming is a fantastic brand, recognised and admired around the world. The opportunities it offers talented people have never been greater.

    It is central to this country’s future – to our economy, to our environment, to a thriving countryside – to making sure Britain remains a fantastic place to live.

    Thank you.

  • Michael Fallon – 2016 Speech in the Falkland Islands

    michaelfallon

    Below is the text of the speech made by Michael Fallon, the Secretary of State for Defence, on board HMS Clyde at Stanley in the Falkland Islands on 16 February 2016.

    I’m delighted to be here.

    One of the most important parts of my job is visiting our troops and civilian personnel around the world, and meeting the local people where they are based.

    I have been trying to come here for some time and I’m pleased to have made it. It is over a decade since a Defence Secretary has visited the Islands so it is long overdue.

    It is a pleasure to have had the opportunity to spend time with you and to hear about life and the issues on the Islands, and to remember those who lost their lives in the conflict.

    This morning I laid a wreath at Liberation Monument and tomorrow I will be visiting Blue Beach Cemetery, and the Argentinian cemetery. It is very moving to be here to reflect on those events.

    I want to start with a simple message, we will always defend your right to determine your future. That matter was settled over 30 years ago, and reaffirmed in the 2013 referendum.

    Last year I reaffirmed that commitment with a £180 million investment over the next decade to modernise the military infrastructure. And I am pleased to announce that I expect to announce a contract for the work to upgrade Mare Harbour next month, and to award a contract for the new Power Station in May with work starting this year.

    And this visit is an opportunity to hear about the success story of these Islands.

    Over the last 3 decades your efforts have developed a thriving, self sufficient, self governing democracy that has enjoyed remarkable growth and economic development.

    And I’ve already experienced the strong community and identity that exists here.

    Today I have been hearing about the opportunities for future economic development. There are plenty of prospects, whether from development of onshore activities, diversification of agriculture, science and technology research, development of exports markets, or increasing the already successful tourism sector.

    The British government wants to help you realise those economic opportunities.

    Our position on sovereignty will not change but as the Prime Minister has said, we want a more positive and productive relationship with the new Argentinian government.

    We are determined that doing that should translate into new economic opportunities and prosperity.

    This means an end to the measures that are damaging your economy, so that you are free to trade, to travel and to welcome all into the wonderful Islands.

    What it will not involve is any question of the position of the Falkland Islands changing.

    If we can achieve it, then a more stable South Atlantic is in all our interests.

    With the support of the UK, I am confident that the Falklands Islands can look forward to an even brighter future.

  • Michael Wilshaw – 2016 Speech at IPPR

    michaelwilshaw

    Below is the text of the speech made by Sir Michael Wilshaw, the Chief Inspector of OFSTED, at the Institute for Public Policy Research (IPPR) on 23 February 2016.

    I’m making this speech in London, but I would have preferred to make it in Manchester. Unfortunately, logistical difficulties made that impossible. But the irony of pronouncing on education in the North from the smug South isn’t lost on me.

    My last Annual Report in December painted a stark picture of a nation divided at the age of 11. Too many children in the North and Midlands, I reported, are being taught in schools that are not good enough. Nearly 1 in 3 secondaries there requires improvement or is inadequate compared to 1 in 4 elsewhere. Of the 16 local authorities nationally with the poorest performing secondary schools, 13 were above a line from the Bristol Channel to the Wash.

    It is fair to say that not all parts of the North and Midlands perform poorly. Many are good and a few are exceptional. It’s also the case that there are areas in the South that are educational laggards. But overall there is a significant discrepancy in performance between North and South. According to the Sunday Times schools guide only a third of the best state schools are in the North and Midlands.

    Manchester and Liverpool illustrate the scale of the problem. Three in 10 secondary schools in Manchester and four in 10 in Liverpool require improvement or are inadequate compared to 1 in 10 in inner London. The situation in some of their satellite towns is even worse. A third of the schools in Rochdale are not good enough, as is a similar proportion in Salford. In Oldham, 6 in 10 secondaries require improvement or are inadequate and in Knowsley not a single secondary school is good or better.

    Fewer than half of all children in these 6 local authorities achieved 5 good GCSEs last year, compared to a national average of 57%.

    Pupils from disadvantaged backgrounds fared particularly badly. In inner London, almost half of pupils eligible for free school meals were awarded five good GCSEs last year. In Greater Manchester, just under a third were successful. In Liverpool it was around a quarter and in Knowsley, only 1 in 5 pupils eligible for free school meals achieved 5 good GCSEs.

    Manchester and Liverpool are at the core of our ambitions for a northern powerhouse. They are the engines that could transform the prospects of the entire region. But as far as secondary education is concerned, they are not firing on all cylinders. In fact they seem to be going into reverse. The proportion of Manchester’s pupils gaining good GCSEs declined from 51.4% 2 years ago to 47.5% now. In Liverpool, the percentage fell from 49.9 to 48.6% over the same period.

    Is poverty the culprit?

    Since I spelt out Ofsted’s concerns late last year, several commentators have argued that disadvantage explains the difference. The North is relatively poor and the South rich.

    But if poverty is the culprit, why are primary schools in the North and Midlands doing so well? There is little difference in inspection outcomes for primaries in these areas and those in the rest of the country. How can deprivation explain disappointment at secondary school yet fail to impede progress at primary? Poverty doesn’t wait to kick in at 11.

    I do not underestimate how difficult it is to educate children who are poor and who lack all the advantages a middle-class background confers. I have spent most of my professional career trying to enthuse children whom others had written off. It isn’t easy for schools to compensate for social disadvantage. But never make the mistake that because it’s difficult, schools cannot make a difference. They can.

    Does ethnicity explain London’s success?

    Others claim that it isn’t poverty but ethnicity that accounts for the discrepancy. London has outperformed the rest, so the argument goes, because children of immigrants tend to be more ambitious. London benefits disproportionately because 37% of its citizens were born overseas. Whereas the rest of the country has higher proportions of the lowest performing ethnic group, white Britons on free school meals.

    Yet parts of inner-city Liverpool and Manchester are no strangers to immigration. Some 25% of residents in Manchester were foreign-born. While Leicester, which has a minority white British population, is one of the worst performing local authority areas. Only half of its pupils achieved 5 good GCSEs.

    Conversely Newcastle, where 85% of secondary schools are good or better and where on average 57.3% students achieved 5 good GCSEs, has far fewer immigrants – only 6% of its citizens were born overseas. Clearly, school progress or decline cannot be explained solely by ethnic background.

    Is it then a question of funding? Inner-London boroughs historically benefited from much higher-per-pupil funding than elsewhere because they were among the most deprived. But Manchester and Liverpool also do relatively well, especially when the effects of increased London pay are stripped out. Around two-thirds of any extra money London receives is spent on higher wages for staff.

    Higher spend doesn’t automatically lead to better performance. Nottingham, which has one of the highest-per-pupil funding settlements in the country outside London, has one of the worst records at secondary – only 42.4% of its youngsters got 5 good GCSEs, including English and maths, last year.

    What needs to be done?

    Yes, London has advantages that other cities lack, but what of Liverpool or Manchester? Are you really telling me that they lack swagger and dynamism? That they cannot succeed in the way London has succeeded? These are the cities that built Britain. They pioneered a modern, civic education when students at certain other universities spent most of their time studying the New Testament in Greek.

    Today, Manchester and Liverpool boast 8 universities between them, 2 of which are among the top 200 in the world. They are beacons of higher educational excellence. But if these cities can provide a world-class education for youngsters at 18, why on earth are they failing to do so for too many at 11?

    At some point, we have to accept that our children’s education can be better – or worse – because of the choices we make. At some point, politicians in Manchester and Liverpool will have to accept that the Northern Powerhouse will splutter and die if their youngsters lack the skills to sustain it.

    Back in the early nineties, the prospects for schools in Hackney, where I taught, seemed as bleak as many areas in the North and Midlands seem today. Only 14% of youngsters in the borough gained a good GCSE in 1990.

    Leadership turned things around. But school leaders didn’t do it by themselves. They had recognizable local champions, politicians like Jules Pipe in Hackney and Robin Wales in Newham who took responsibility for the performance of their local schools – all schools, not just those under their direct control.

    They expected results and refused to accept excuses from any of them. Their priority was, and remains, the better education of children. They did not allow varying school structures to deflect them from that objective. All children in every school were their children and all schools would be held to account for their performance.

    This is what needs to happen now in Manchester and Liverpool. I appreciate that it isn’t easy and I accept that improvement can’t happen overnight. I understand that it’s a lot easier to teach children who don’t come to school hungry, who live in homes filled with books, who have parents who are employed let alone university educated.

    Nor am I calling for a return to micro-management of schools by town halls or for new local educational powers. But I am talking about political will and vision. I am calling on local politicians, be they mayors, council leaders or cabinet members, to stand up and be counted, to shoulder responsibility for their local schools, to challenge and support them regardless of whether they are academies or not. I’m calling on them to be visible, high-profile figures that people can recognize as education champions. I am calling on them to make education in general – and their underperforming secondary schools in particular – a central target of their strategy for growth. I am asking them to better understand that unless there are high standards in the major cities of our country then good practice will not radiate out to the satellite towns and communities outside those cities.

    Unless they do, I fear Manchester and Liverpool will never become the economic powerhouses we want them to be. We cannot fight for social mobility with political immobility. Politicians need to act. It requires grit, imagination, faith and bloody mindedness – qualities that, fortunately, I really don’t think are less common in the North than they are down South.

    Thank you.

  • Michael Gove – 2015 Statement on Harris Review

    michaelgove

    Below is the text of the statement made by Michael Gove, the Lord Chancellor and Secretary of State for Justice, in the House of Commons on 17 December 2015.

    I will today publish the government’s response to the Harris Review into self-inflicted deaths in custody of 18-24 year olds.

    The government is grateful to Lord Harris of Haringey and the Harris Review panel for their report on this important review.

    We must never simply accept self-harm and self-inflicted deaths as an inevitable feature of prison life. Reducing the rates of violence, self-harm and deaths in custody is a priority for the National Offender Management Service. I have already made clear that our prison system needs urgent reform. I have also asked Charlie Taylor to review the current system of youth justice. We will be setting out more detail on our plans for reform in due course.

    The government’s response to the Harris review sets out the wide range of action we are taking to reduce self-harm and self-inflicted deaths in custody, including giving greater support to those with mental health vulnerabilities who come into contact with the criminal justice system and improving the management of “Safer Cells” in prisons. We are also increasing the number of prison staff. Over the last year we recruited 2,340 prison officers, a net increase of 540.

    The Harris Review, and our response, will help to address the serious problems of self-harm and self-inflicted deaths as we develop our wider reforms to make prisons places of decency, hope and rehabilitation.

    The response will be laid today and copies will be available in the Vote and Printed Paper Offices. The response will also be published online at www.gov.uk.

  • David Cameron – 2015 Statement on Muslim Brotherhood Review

    davidcameron

    Below is the text of the statement made by David Cameron, the Prime Minister, in the House of Commons on 17 December 2015.

    I have today laid before both Houses the main findings of the internal review I commissioned in the last Parliament to improve the government’s understanding of the Muslim Brotherhood; establish whether the Muslim Brotherhood’s ideology or activities, or those of individual members or affiliates, put at risk, damaged, or risked damaging the UK’s national interests; and where appropriate inform policy.

    The review involved substantial research and wide consultation including Muslim Brotherhood representatives in the UK and overseas, and an open invitation to other interested parties to submit written contributions.

    It is a complex subject: the Muslim Brotherhood comprises both a transnational network, with links in the UK, and national organisations in and outside the Islamic world. The movement is deliberately opaque, and habitually secretive.

    Since the authors completed their initial research in 2014, and during the course of the government’s examination of the findings, further allegations of violence carried out by supporters of the Muslim Brotherhood have surfaced, which the government will continue to investigate, taking action as appropriate.

    As the Muslim Brotherhood continues to evolve, so must our understanding of it. The findings have revealed much that we did not know but work will continue to ensure we keep up to date with developments.

    The government considers the following the most important findings.

    The Muslim Brotherhood’s foundational texts call for the progressive moral purification of individuals and Muslim societies and their eventual political unification in a Caliphate under Sharia law. To this day the Muslim Brotherhood characterises Western societies and liberal Muslims as decadent and immoral. It can be seen primarily as a political project.

    Parts of the Muslim Brotherhood have a highly ambiguous relationship with violent extremism. Both as an ideology and as a network it has been a rite of passage for some individuals and groups who have gone on to engage in violence and terrorism. It has stated its opposition to al-Qaida (AQ) but it has never credibly denounced the use made by terrorist organisations of the work of Sayyid Qutb, one of the Brotherhood’s most prominent ideologues. Individuals closely associated with the Muslim Brotherhood in the UK have supported suicide bombing and other attacks in Israel by Hamas, an organisation whose military wing has been proscribed in the UK since 2001 as a terrorist organisation, and which describes itself as the Palestinian chapter of the Muslim Brotherhood.

    Moreover, despite the Egyptian Muslim Brotherhood’s public condemnation of violence in 2012/13 and afterwards, some of their supporters have been involved in violent exchanges with the security forces and other groups. Media reports and credible academic studies indicate that in the past 12 months a minority of Muslim Brotherhood supporters in Egypt have engaged alongside other Islamists in violent acts. Some senior leaders have publicly reiterated the Muslim Brotherhood’s commitment to non-violence, but others have failed to renounce the calls for retribution in some recent Muslim Brotherhood statements.

    Muslim Brotherhood-associated and influenced groups in the UK have at times had a significant influence on national organisations which have claimed to represent Muslim communities (and on that basis have had a dialogue with government), charities and some mosques. But they have also sometimes characterised the UK as fundamentally hostile to Muslim faith and identity; and expressed support for terrorist attacks conducted by Hamas.

    Aspects of the Muslim Brotherhood’s ideology and activities therefore run counter to British values of democracy, the rule of law, individual liberty, equality and the mutual respect and tolerance of different faiths and beliefs. The Muslim Brotherhood is not the only movement that promotes values which appear intolerant of equality and freedom of faith and belief. Nor is it the only movement or group dedicated in theory to revolutionising societies and changing existing ways of life. But I have made clear this government’s determination to reject intolerance, and to counter not just violent Islamist extremism, but also to tackle those who create the conditions for it to flourish.

    The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism.

    We will therefore keep under review the views that are promoted and activities that are undertaken by Muslim Brotherhood associates in the UK, in Arabic as well as English. We will consider whether any action under the Counter-Extremism Strategy or as part of our wider work may be appropriate, including action in line with the new engagement policy the government will develop to ensure central and local government does not inadvertently provide legitimacy or a platform for extremists. We will challenge extremists’ poisonous narratives and promote positive alternatives that show vulnerable people that there are better ways to get on in life.

    We will continue to:

    – refuse visas to members and associates of the Muslim Brotherhood who are on record as having made extremist comments, where this would be conducive to the public good and in line with our existing policy guidelines and approach to extremism in all forms

    – seek to ensure charities that have links to the Muslim Brotherhood are not misused to support or finance the Muslim Brotherhood instead of their lawful charitable purpose

    – strengthen liaison arrangements with international partners to ensure that allegations of illicit funding or other misuse of charities are robustly investigated and appropriate action taken

    – enforce the EU asset freeze on Hamas

    – keep under review whether the views and activities of the Muslim Brotherhood meet the legal test for proscription

    We will also intensify scrutiny of the views and activities that Muslim Brotherhood members, associates and affiliates (whether based in the UK or elsewhere) promote overseas. As our Counter-Extremism Strategy makes clear, insights from our overseas posts will help the government better understand drivers, networks and ideologies. We will continue to consult, and share information and analysis with, governments in the Middle East and North Africa as appropriate. We will then take further decisions and actions as needed.

  • David Cameron – 2016 Speech on EU Reform

    davidcameron

    Below is the text of the statement made by David Cameron, the Prime Minister, in the House of Commons on 22 February 2016.

    With permission, Mr Speaker, I would like to make a statement on the agreement reached in Brussels last week.

    But first let me say a word about the migration crisis which was also discussed at the Council.

    We agreed that we needed to press ahead with strengthening the EU’s external borders to ensure that non-refugees are returned promptly and back the new mission to disrupt the criminal gangs working between Greece and Turkey, who are putting so many people’s lives at risk.

    And I made clear that Britain will continue to contribute in all these areas and will step up contributions.

    Turning to Britain’s place in Europe, Mr Speaker, I have spent the last 9 months setting out the 4 areas where we need reform and meeting with all 27 other EU heads of state and government to reach an agreement that delivers concrete reforms in all 4 areas.

    Let me take each in turn.

    Financial protection

    First, British jobs and British business depend on being able to trade with Europe on a level playing field.

    So we wanted new protections for our economy to safeguard the pound, to promote our industries – including our financial services industries, to protect British taxpayers from the costs of problems in the eurozone and to ensure we have a full say over the rules of the single market, while remaining outside the eurozone.

    And we got all of those things.

    We have not just permanently protected the pound and our right to keep it, but ensured that we can’t be discriminated against.

    Responsibility for supervising the financial stability of the UK will always remain in the hands of the Bank of England.

    We have ensured that British taxpayers will never be made to bail out countries in the eurozone.

    We have made sure that the eurozone cannot act as a bloc to undermine the integrity of the free trade single market.

    And we have guaranteed that British business will never face any discrimination for being outside the eurozone.

    So, for example, our financial services firms – our number 1 services export employing over a million people can never be forced to relocate inside the eurozone if they want to undertake complex trades in euros, just because they are based in the UK.

    And these protections are not just set out in a legally-binding agreement.

    All 28 member states were also clear that the treaties would be changed to incorporate the protections for the UK as an economy that is inside the EU but outside the eurozone.

    We also agreed a new mechanism to enable non-eurozone countries to raise issues of concern – and we won the battle to ensure this could be triggered by one country alone.

    Of course, Mr Speaker, none of these protections would be available if we were to leave the EU.

    European competitiveness

    Second, we wanted commitments to make Europe more competitive, creating jobs and making British families more financially secure.

    Again we got them.

    Europe will complete the single market in key areas that will really help Britain.

    In services – making it easier for thousands of UK service-based companies like IT firms to trade in Europe.

    In capital – so UK start-ups can access more sources of finance for their businesses.

    And in energy – allowing new suppliers into our energy market – meaning lower energy bills for families across the country.

    We have secured commitments to complete trade and investment agreements with the fastest growing and most dynamic economies around the world including the USA, Japan and China as well as our Commonwealth allies India, New Zealand and Australia.

    These deals could add billions of pounds and thousands of jobs to our economy every year.

    And, of course they build on the deals we already have with 53 countries around the world through which Britain has benefitted from the negotiating muscle that comes from being part of the world’s largest trading bloc.

    Mr Speaker, of course country after country have said to me that of course they could sign trade deals with Britain.

    But they have also said that their priority would be trade deals with the EU.

    By their nature these EU deals would be bigger and better.

    And a deal with Britain wouldn’t even be possible until we had settled our position outside the EU.

    So Mr Speaker, for those members who care about signing new trade deals outside the EU, we would be looking at years and years of delay.

    Last but by no means least on competitiveness, one of the biggest frustrations for British business is the red tape and bureaucracy so we agreed there will now be targets to cut the total burden of EU regulation on business.

    This builds on the progress we have already made – with the Commission already cutting the number of new initiatives by 80% and it means that the cost of EU red tape will be going down, not up.

    Of course, if we were to leave the EU but ultimately achieve a deal with full access to the single market – like Norway – we would still be subject to all of the EU’s regulation when selling into Europe.

    As the former Europe spokesman for the Norwegian Conservative Party Nikolai Astrup said:

    If you want to run Europe, you must be in Europe. If you want to be run by Europe, feel free to join Norway in the European Economic Area.

    Migration

    Third, we wanted to reduce the very high level of migration from within the EU by preventing the abuse of free movement and preventing our welfare system acting as a magnet for people to come to our country.

    After the hard work of the Home Secretary we have secured new powers against criminals from other countries including powers to stop them from coming here in the first place, and powers to deport them if they are already here.

    We agreed longer re-entry bans for fraudsters and people who collude in sham marriages.

    And an end to the frankly ridiculous situation where EU nationals can avoid British immigration rules when bringing their families from outside the EU.

    Mr Speaker, this agreement broke new ground – with the European Council agreeing to reverse decisions from the European Court of Justice.

    We have also secured a breakthrough agreement for Britain to reduce the unnatural draw that our benefits system exerts across Europe.

    We have already made sure that EU migrants cannot claim the new unemployment benefit, Universal Credit, while looking for work.

    And those coming from the EU who haven’t found work within 6 months can now be required to leave.

    At this Council we agreed that EU migrants working in Britain can be prevented from sending child benefit home at UK rates.

    This will apply first to new claimants – and then to existing claimants from the start of 2020.

    And we also established a new emergency brake so that EU migrants will have to wait 4 years until they have full access to our benefits.

    Mr Speaker, people said it was impossible to achieve real change in this area.

    And that a 4-year restriction on benefits was completely out of the question.

    And yet that is what we have done.

    And once activated, the emergency brake will be in place for 7 years.

    So if it begins next year, it will still be operating in 2024 and there will be people who won’t be getting full benefits until 2028.

    Mr Speaker, all along we have said that people shouldn’t be able to come here and get access to our benefits system straightaway.

    No more something for nothing.

    And that is what we have achieved.

    Mr Speaker, I’m sure the discussion about welfare and immigration will be intense.

    But let me make this point.

    No country outside the EU has agreed full access to the single market without accepting paying into the EU and accepting free movement.

    In addition, these new safeguards lapse if we leave the EU.

    Powers for UK Parliament

    The fourth area where we wanted to make significant changes was to protect our country from further European political integration and to increase powers for our national Parliament.

    Ever since we joined, Europe has been on the path to something called ‘ever closer union’.

    It means a political union. We’ve never liked it. We never wanted it.

    And now Britain will be permanently and legally excluded from it.

    The text says that the treaties will be changed to make clear that – and I quote:

    …the Treaty references to ever closer union do not apply to the United Kingdom.

    So Mr Speaker, as a result of this negotiation, Britain can never be part of a European superstate.

    The council also agreed that ever closer union, which has been referred to in previous judgements from the European Court of Justice does not offer a legal basis for extending the scope of any provision of the treaties or of EU secondary legislation.

    Mr Speaker, people used to talk about a multi-speed Europe.

    Now we have a clear agreement that not only are different countries able to travel at different speeds, they are ultimately heading to different destinations too. And I would argue that is fundamental change.

    We have also strengthened the role of this House and all national parliaments.

    We have already passed a Referendum Act to make sure that no powers can be handed to Brussels without the explicit consent of the British people in a referendum.

    Now, if Brussels comes up with legislation we don’t want, we can get together with other parliaments and block it with a red card.

    And we have a new mechanism to finally enforce the principle that – as far as possible – powers should sit here in Westminster, not in Brussels.

    So every year the EU now has to go through the powers they exercise and work out which are no longer needed and should be returned to nation states.

    In recent years we have also seen attempts to bypass our opt-out on justice and home affairs by bringing forward legislation under a different label.

    For example, attempts to interfere with the way the UK authorities handle fraud were tried under the guise of legislation on the EU budget.

    The agreements at last week’s Council ensure this can never happen again.

    Mr Speaker, the reforms we have secured will be legally binding in international law, and will be deposited as a treaty at the UN.

    And they cannot be unpicked without the agreement of Britain and every other EU country.

    And as I have said, all 28 member states were also clear that the treaties would be changed to incorporate the protections for the UK as an economy outside the eurozone – and our permanent exclusion from ever closer union.

    Mr Speaker, our special status means that Britain can have the best of both worlds.

    We will be in the parts of Europe that work for us, influencing the decisions that affect us, in the driving seat of the world’s biggest single market and with the ability to take action to keep our people safe.

    But we will be out of the parts of Europe that do not work for us.

    Out of the euro. Out of the eurozone bailouts.

    Out of the passport-free, no borders Schengen area and permanently and legally protected from ever being part of an ever closer union.

    Of course, there is still more to do.

    I am the first to say that there are still many ways in which this organisation needs to improve – and the task of reforming Europe does not end with last week’s agreement.

    Referendum

    But with the special status this settlement gives us, I do believe the time has come to fulfil another vital commitment this government made – and that is to hold a referendum.

    So, Mr Speaker, I am today commencing the process set out under our Referendum Act to propose that the British people decide our future in Europe through in-out referendum on Thursday 23 June.

    The Foreign Secretary has laid in both Houses a report setting out the new settlement that the government has negotiated.

    This fulfils the duty to publish information set out in section 6 of the European Union Referendum Act 2015.

    And as the Cabinet agreed on Saturday, the government’s position will be to recommend that Britain remains in this reformed European Union.

    Mr Speaker, this is a vital decision for the future of our country. And we should also be clear that it is a final decision.

    An idea has been put forward that if the country votes to leave we could have a second renegotiation and perhaps another referendum.

    Mr Speaker I won’t dwell on the irony that some people who want to vote to leave – apparently want to use a leave vote to remain.

    But such an approach also ignores more profound points about democracy, diplomacy and legality.

    This is a straight democratic decision – staying in or leaving – and no government can ignore that.

    Having a second renegotiation followed by a second referendum is not on the ballot paper.

    And for a Prime Minister to ignore the express will of the British people to leave the EU would not just be wrong, it would be undemocratic.

    On the diplomacy, the idea that other European countries would be ready to start a second negotiation is for the birds. Many are under pressure for what they have already agreed.

    Then there is the legality. I want to spell out this point very carefully. If the British people vote to leave there is only one way to bring that about – and that is to trigger Article 50 of the Treaties and begin the process of exit.

    And the British people would rightly expect that to start straight away.

    Let me be absolutely clear how this works. It triggers a 2-year time period to negotiate the arrangements for exit.

    At the end of this period, if no agreement is in place then exit is automatic unless every 1 of the 27 other EU member states agrees to a delay.

    And we should be clear that this process is not an invitation to re-join, it is a process for leaving.

    Sadly, Mr Speaker, I have known a number of couples who have begun divorce proceedings.

    But I do not know any who have begun divorce proceedings in order to renew their marriage vows.

    We should also be clear about what would happen if that deal to leave wasn’t done within 2 years.

    Our current access to the single market would cease immediately after 2 years were up.

    And our current trade agreements with 53 countries around the world would lapse.

    This cannot be described as anything other than risk, uncertainty and a leap in the dark that could hurt working people in our country for years to come.

    And this is not some theoretical question, this is a real decision about people’s lives.

    When it comes to people’s jobs, it is simply not enough to say that it will be all right on the night and we will work it out.

    And I believe that in the weeks to come we need to properly face up to the economic consequences of the choice to leave.

    Mr Speaker, I believe Britain will be stronger, safer and better off by remaining in a reformed European Union.

    Stronger – because we can play a leading role in one of the world’s largest organisations from within, helping to make the big decisions on trade and security that determine our future.

    Safer – because we can work with our European partners to fight cross-border crime and terrorism.

    And better off – because British businesses will have full access to the free trade single market, bringing jobs, investment and lower prices.

    Mr Speaker, there will be much debate about sovereignty – and rightly so.

    To me what matters most is the power to get things done for our people, for our country, and for our future.

    Leaving the EU may briefly make us feel more sovereign – but would it actually give us more power, more influence and a greater ability to get things done?

    If we leave the EU, will we have the power to stop our businesses being discriminated against? No.

    Will we have the power to insist that European countries share with us their border information so we know what terrorists and criminals are doing in Europe? No.

    Will we have more influence over the decisions that affect the prosperity and security of British families? No.

    We are a great country – and whatever choice we make we will still be great.

    But I believe the choice is between being an even greater Britain inside a reformed EU or a great leap into the unknown.

    The challenges facing the west today are genuinely threatening.

    Putin’s aggression in the east. Islamist extremism in the south.

    In my view this is no time to divide the west.

    When faced with challenges to our way of life, our values and our freedoms, this is a time for strength in numbers.

    And Mr Speaker, let me end by saying this.

    I am not standing for re-election.

    I have no other agenda than what is best for our country.

    I am standing here today telling you what I think.

    My responsibility as Prime Minister is to speak plainly about what I believe is right for our country.

    And that is what I will do every day for the next 4 months.

    And I commend this statement to the House.

  • Harriett Baldwin – 2016 Speech at Fintech Week

    Harriett Baldwin
    Harriett Baldwin

    Below is the text of the speech made by Harriett Baldwin, the Economic Secretary to the Treasury, at an event held by the Association of British Insurers on 22 February 2016.

    It is great to be here to kick off Fintech Week.

    Fintech Week has two key aims.

    The first is to celebrate our status as a leading global Fintech hub.

    The second is to look at what we need to do if we want to become, and remain, the leading global Fintech hub.

    Part of that is, of course, what more government, or regulators, can do to support UK Fintech.

    But it’s also about what this event highlights – what we can do to foster greater collaboration between Fintechs and traditional financial services firms.

    It feels particularly apt for this event to be held in this historic part of London, right next to Shoreditch and Hoxton, the hubs of innovation and technology in London.

    It’s an area which has become a byword for innovative technology.

    The buzz in this historic corner of London shows how important it is to us as a country to be open to new things and new ideas.

    And that effect isn’t just local or regional – it’s national. Across the UK the Fintech market generated over £6.5 billion in revenue last year. Our Fintechs attract significant investment, with around £550 million in capital invested in 2015. It is clear that we have a strong pool of talent and the right government and regulatory regimes to help Fintechs thrive.

    I’ve been particularly encouraged by seeing start-ups from across the world choosing the UK as their home and developing their businesses here.

    As an example, Startupbootcamp’s new accelerator programme based in London, called InsurTech, offers funding and mentoring to companies from across the world.

    And aside from the positive economic effects, Fintech also helps normal people in their daily lives. It gives them extra choices; it makes their everyday tasks simpler; it improves their quality of life. In the 21st century, Fintech is quite simply essential in making financial services work for the customer.

    So Fintech is something we want to see grow ever stronger in the UK – because the technologies you have or are developing have huge economic benefits for the UK and beyond.

    And as a government, we are determined to ensure that we’ve got the right environment to nurture businesses and really boost technological innovation, supporting the sector in any way that we can.

    We’ve made a strong start in making the UK an attractive environment in which to be a Fintech business.

    In 2014, the Financial Conduct Authority launched Project Innovate and subsequently established the Innovation Hub – a support unit for innovative businesses to help them understand the regulatory framework and apply for authorisation.

    The FCA has continued this good work with a number of other initiatives. One of the most exciting is the FCA’s regulatory sandbox which will be open to applications for testing from firms this coming spring.

    Though “regulatory sandbox” is certainly a contender for the “jargon of the year award”, what a regulatory sandbox does is provide a safe space for innovative firms to test out new ideas at an early stage, with real consumers, but with oversight from the regulator.

    As an additional benefit, a sandbox also ensures the regulator is close to innovations in financial services and understands both the risks and benefits they may pose.

    I know that the ABI has been supportive of this and has been working closely with the FCA to ensure that companies developing insurance products can benefit – I hope that this will continue going forward.

    It’s not just the FCA who have been busy working in this space. As a government, we’ve also been working on how Fintechs can make better use of bank data on behalf of customers, by creating an Open Application Programming Interface (API) standard in UK banking.

    This would, for example, enable Fintechs to design phone apps which help customers manage their money better.

    Earlier this month, the Open Banking Working Group published a framework for how the open API standard can be designed and delivered. My thanks go to the Group’s chairs and all those involved in this important work.

    In addition, we recently appointed Eileen Burbidge as the UK’s Special Envoy for Fintech. In this role she represents UK interests in Fintech, at home and around the world, and leads the Treasury’s engagement with industry.

    But the work doesn’t stop here. We know we have to build on our successes if we are to maintain our position as the leading global FinTech hub and compete with the likes of Silicon Valley. There is fierce international competition for this growing industry, so it’s vital that we don’t stand still.

    As I mentioned at the start, greater collaboration with traditional financial services firms, such as those in the insurance sector, can play a crucial role here.

    How the insurance sector can contribute and what they have done so far

    The UK insurance industry has long been a pioneer in insurance innovation, with a long and proud history stretching back to the 17th century.

    UK insurers have always been among the first to take on exotic new risks created by evolving technology – such as the first cars and aeroplanes – and to sell insurance in new ways – such as over the phone or on online.

    And this readiness to innovate has helped keep the insurance industry a leader in Europe, and one of the great assets of the UK’s financial services industry. That is certainly something we are determined to see continue.

    In this rapidly changing society and technological landscape, the challenge for industry is how best to adapt to these fast-paced changes. Customers want and expect more from service providers – everything has to be quicker and better!

    We’ve already seen companies like ‘Cuvva’ step up to this challenge where, once signed up, you can purchase short term insurance for a car within minutes, even seconds if you’re quick enough, just by using an app and a smartphone camera.

    I believe that UK financial services are nothing if not adaptable – so I know that the industry will thrive in this changing environment, spot new opportunities – and continue growing, and serving your customers.

    Much innovation in financial services comes from start-ups and from other non-conventional players. This is why collaboration between start-ups and the larger institutions is key. Both can learn from each other; both, ultimately, stand to benefit from working closely together.

    There have already been some exciting developments in the insurance tech industry, such as within the telematics and ‘big data’ sphere.

    For instance, we are seeing the advent of ‘social insurance’, whereby some brokers are accessing a greater client base through social media to disrupt the sector.

    The government’s open data initiative, along with general progress in ‘big data’, is helping transform how underwriters price risk. As an example, some have made use of the publicly available DVLA data when designing new products in relation to motor insurance.

    And the government’s continued support is also clear from our commitment to organisations such as the Alan Turing Institute, which will ensure that we continue to remain at the forefront of digital and technological advances.

    Other opportunities include ‘block-chain’, which has been heralded as revolutionary by some, particularly for the insurance sector, owing to its potential to reduce insurance fraud.

    It is great to see the insurance industry take advantage of opportunities such as these, and others. And I’ve been particularly pleased to see some insurers creating dedicated spaces, to test new ideas and collaborate with tech start-ups.

    The Aviva Digital Garage is an excellent example – and I know there are many more companies that are also investing in similar initiatives, such as AXA who announced that they would be funding a new €100 million InsurTech incubator, dedicated to designing and launching novel disruptive products and services for insurance clients.

    I hope that, in the future, we will see many more combinations like these, between well-known institutions, with their knowledge and expertise, and start-ups, with exciting new ideas to bring to the table. These sort of partnerships can only be win-win.

    Events like this are excellent ways of forging such relationships:

    You come together, you discuss your challenges, you think of ways to overcome them, you throw around ideas. You collaborate. You grow.

    When that happens, everyone stands to benefit. And we, as a government, will be on your side.

    So I hope today discussion – in this amazing venue – proves fruitful and constructive, and I hope you will all continue to engage with one another, and help make – and keep – the UK the leading Fintech hub in the world.

  • Sajid Javid – 2016 Speech on Inspirational Businesses

    CBI Conference

    Below is the text of the speech made by Sajid Javid, the Secretary of State for Business, Innovation and Skills, at the London Stock Exchange on 22 February 2016.

    Thank you, Xavier, for that warm introduction.

    And thank you for letting me have the honour of the opening the world’s greatest stock exchange a few moments ago.

    I’m sure we all agree that if the FTSE closes up today, it will be because of the uniquely skilled way the market was opened this morning!

    And if it goes down…

    Well let’s just say I was never here!

    Seriously, it’s great to be back in the City.

    My 20-odd years with Chase Manhattan and Deutsche Bank took me all over the world.

    But whenever I found myself in their Square Mile offices, it really felt like I’d come home.

    And it’s a particular pleasure to be here today of all days.

    Because this morning I get to see for myself some of the wonderful, inspiring British businesses in the LSE’s latest 1,000 companies list.

    Too often politicians get dazzled by the big brands.

    The household names.

    The multinationals employing tens of thousands of people.

    But even the biggest company started life as nothing more than one or two people with an idea.

    And the small- and medium-sized companies of today, the ones listed in this report, are the big names of tomorrow.

    That’s not just rhetoric.

    The thousand companies in this list are experiencing average annual growth of 50%.

    That’s an incredible figure, one that really shows how SMEs are powering the economic recovery.

    The diversity of the companies listed here is inspiring too.

    For one thing, they represent the whole of the UK.

    This isn’t London navel-gazing.

    There’s more than 100 in the North West of England, almost 200 across the Midlands.

    We’ve got companies in Aberdeen, in Bristol…

    And I wouldn’t be doing my job as a constituency MP if I didn’t highlight that there are 2 in Bromsgrove: Crown Domestic Appliances and Oakland International.

    So well done to everyone who has made it onto this year’s list.

    But particularly those 2!

    The spread of companies isn’t just geographical.

    They also cover a huge range of sectors, from IT to advertising to financial services.

    And about a quarter of them are involved in some kind of manufacturing or engineering.

    A lot of people think that industry is a thing of the past, that it’s all about the service sector now.

    But these fast-growing, dynamic innovative companies show that Britain still has a real future in skilled manufacturing.

    And that’s great to see.

    For all that diversity, there are a few common threads linking these firms together.

    One of those is their commitment to innovation and investment.

    That’s what makes the difference in achieving such high growth returns year-on-year.

    And that’s something the government, and my department in particular, are really serious about supporting.

    Last summer, you may have seen, we launched a plan called ‘Fixing the foundations’.

    It’s our cross-government plan for increasing productivity right across the economy.

    Our vision for increasing long-term investment in people, capital and ideas, and making markets more dynamic.

    That includes everything from increasing the quality and quantity of apprenticeships, to reforming the planning system, to changing the way the government supports growing companies who want to export.

    But that’s not all.

    With the right support, the inspired ideas of today can become the businesses of tomorrow.

    So, at the Spending Review, the Chancellor announced an investment of almost £7 billion as part of the national science capital commitment.

    He also protected today’s annual £4.7 billion resource funding in real terms.

    Together, this underlines our commitment to keeping the UK a world leader in science and research.

    We have also created Catapult centres that help business and researchers turn great ideas into commercial reality.

    They cover 11 new and emerging technologies in areas where there are world-leading research capabilities in the UK.

    Building on this, we’ll shortly be publishing a National Innovation Plan to ensure the UK remains an international beacon for bright ideas.

    The plan will bring together ideas, levers and investment from across government, so we can create the right conditions for businesses to innovate and grow.

    Of course, as Anthony Browne from the BBA says in today’s report, ambitious companies need finance in order to grow.

    Banks provide a lot of that.

    But bank lending isn’t the only way to go for innovative SMEs.

    So I’d like to pay tribute to the UK’s Angel, Venture Capital and Public Market investor community for the role they are playing in helping innovative companies to start up and scale up.

    Xavier and his team here at the LSE are also doing a lot to help strengthen the equity ladder, with the AIM, the High Growth Segment, and the ELITE Programme.

    You’re giving innovative businesses access to both finance and expertise, and that should be applauded.

    And I’m pleased to say the government is doing its bit too.

    The British Business Bank is working alongside private lenders and investors to support a large number of innovative companies.

    It’s part of our ambition – my ambition – to make the UK the best place in the world to start and grow a business.

    That’s why all the specific support for innovative SMEs I’ve talked about today is underpinned by a passionate understanding of and support for businesses of all shapes and sizes.

    We’ve slashed £10 billion of red tape for business, and are committed to cutting another £10 billion by 2020.

    We’re extending the doubling of small business rate relief until 2017.

    We’re cutting corporation tax to the lowest level of any major economy.

    We’ve lifted hundreds of thousands of businesses out of Employer National Insurance Contributions.

    We’ve set the highest ever permanent level for the annual investment allowance.

    We’ve got R&D tax credits, the Patent Box and Entrepreneur’s Relief.

    We’ve got tax schemes like the Enterprise Investment Scheme to encourage individuals to invest in small growth companies.

    And the Enterprise Bill, currently before Parliament, will create a new Small Business Commissioner to give SMEs a stronger voice.

    I was at Davos last month, where all the talk was of a future in which successful companies would be lean, agile, innovative and fast-growing.

    Well, when I look in this report and look around this room that’s exactly what I see.

    That means you are the future not just of British business, but of the global economy.

    It’s a big weight to bear, but I’m sure you can take it.

    The work you’re doing really is inspiring.

    And I’m very pleased to say that you’ve got a Business Secretary and a government that’s going to support you every step of the way.

    Thank you.

  • Basil Peto – 1912 Speech on the Minimum Wage

    Below is the text of the speech made by Basil Peto in the House of Commons on 15 February 1912.

    I beg to move, as an Amendment to the proposed Amendment, to leave out the words, Your Majesty’s Gracious Speech contains no specific mention of legislation securing a minimum living wage and for preventing a continuance of such unequal division of the fruits of industry by the nationalisation of railways, mines, and other monopolies, and to insert instead thereof the words, Your Majesty’s Ministers are not taking steps to forward the fair and equitable division between capital and labour of the profits of industry by co-partnership which would unite their interests and enormously add to the productive capacity of the country, cheapen the cost of commodities, increase this country’s power of competing in all other markets, and give to wage-earners a human interest in life and work and place them on a moral equality with every other class. I hope the hon. Member for East St. Pancras (Mr. Martin) will excuse me if I do not follow him through the whole of his speech. I would like, however, to say one word with regard to the speech he has made. There is one point in which I find myself in sympathy with him. He drew a comparison between the railway rates charged in this country and those charged in other countries to bring Foreign and Colonial produce to our shores. There I entirely agree with him; there is something which very much wants looking into; but when he says there are these fabulous millions to be saved and enormous reductions in the rates to be obtained simply by nationalisation of the railways, I part company with him. Two hon. Members who addressed the House earlier in the Debate—I think the hon. Member for the Montrose Burghs (Mr. R. Harcourt) and the hon. Member for Walsall (Mr. Cooper)—speaking from opposite sides of the House, said they were in sympathy with what I may term the premises underlying the Amendment before the House, but they did not agree with the remedy the hon. Member for Leicester (Mr. Ramsay MacDonald) and his Friends proposed to apply. I find myself in the same position. Both those hon. Members said they would like to move an Amendment, and the hon. Member for the Montrose Burghs read out the Amendment he would have proposed. I am afraid I do not find myself very much in agreement with him, but I hope when I have the honour of moving the Amendment to the Amendment of the hon. Member for Leicester, of which I have given notice, both those hon. Members will find themselves more in agreement with me than I find myself in agreement with the hon. Member for the Montrose Burghs. I have listened to the speeches which have been made, and before I proceed with my Amendment I should like to say a word or two with regard to one or two of the things those speeches contained. It struck me as rather curious that the hon. Member for Bow and Bromley (Mr. Lansbury) should have used almost the exact phrase with which the Amendment I shall have the honour of proposing terminates. He spoke of the equal value of each human life and the right to a full life. I do not think, however, his argument went to meet that contention. It seemed to me that most of his arguments, and most of the arguments that underlie the whole question of the minimum wage referred to in this Amendment, rather ask for a reasonably full stomach, and nothing more. They do not touch the moral question in any kind of way, or the question of the equality of all people in this country and their equal right to have an equal interest in their life and their life’s work. He also mentioned two or three cases of family budgets where it was perfectly impossible to provide, and where nothing was provided, for milk at all. I am entirely in agreement with the hon. Member when he asked how we can hope to raise an Imperial race when we have children whose parents are so poor that they are unable to provide that which is absolutely necessary for bringing up a healthy human being. All those things touch what I call the premises which underlie this Amendment. They do not deal with the remedy at all, the remedy of the nationalisation of land and of all monopolies.

    I would like to say a word or two with regard to the speech of the hon. Member for Leicester. He said the higher the protection the worse was the condition of labour. Surely a generalisation of that kind comes rather curiously at the present time, when we have had a Report, not of a Tariff Reform Commission, but of a Government Commission, to inquire into the cost of living and labour in the United States of America. It is admitted in that Report that although the cost of living is much higher—it is reported to be something like 50 per cent. higher—than in this country, yet the wages in the most protected country in the world, a country that originated the term of “American Protection” to which one hon. Member referred, are two and a half times as high as in this country. That means that on the average every man there can save as much every week as every man can earn in this country. Yet the hon. Member tells us that the higher the protection the worse the condition of the labour. Then he said it was one of the primary tenets of the Tariff Report party that whenever prices were raised wages were raised. I beg to submit with all respect that the hon. Member was really confusing cause and effect. We never say anything of the kind. What we do say is that under reasonable conditions of employment, and under reasonable conditions of carrying on the trade of the country, such as are common to every other country in the world, wages will rise. It has been said if we had had Tariff Reform in 1906 prices would have been higher than now. I think that is not so. I think the contrary is the case. That leaves out the whole of the other part of the question. The hon. Member did not touch on the question whether, if prices had been higher, the wages would have been higher to meet those prices.

    The hon. Member for North-East Manchester (Mr. Clynes) said that if the wage-earning classes could not get justice by argument and peaceful means they naturally took steps to get advantages by other and forcible means. With regard to that point, in the Amendment which I have on the Paper I suggest an alternative. After all, wages like profit, depend entirely upon what is to be got out of industry. You cannot get out of an egg more than it contains, and a fair division between capital and labour will not involve any complicated methods of conciliation boards nor will it require any resort to force. I should like to say one word with regard to the terms of the Amendment. It suggests a minimum living wage and preventing a continuance of the unequal division of the fruits of industry by the nationalisation of railways, mines, and other monopolies. I should like to know why the term “fruits of industries” is used? Why does not the hon. Member call a spade a spade? Why does he not refer to the profits of industry? After all the fruits of industry are the profits of industry. I wonder whether the hon. Member had in his mind, when referring to the fruits of industry, the idea that the labouring classes in this country were to get something unknown out of the lucky bag without any effort on their part. On this question of the unequal division of profits, I ask how is it going to be met by the nationalisation of the railways and coal mines? The whole underlying basis of the argument for nationalisation is the abolition of profit. The hon. Member for Bow and Bromley said he would like to see profits done away with. He hopes the tramways will, at any rate, become national property. [An. HON. MEMBER: “Municipal property.”] Well, municipal property, and the hon. Member expressed the hope that there would be no occasion to pay anything whatever in connection with them. How, under a system of nationalisation, are you going to arrive at a more equitable division of profits?

    I come next to the question of the minimum wage. What is asked for? Is it the high ideal of the wage-earning classes? It is now over a century since the abolition of slavery, yet we are still in a condition in this country where there are people who do not get adequate food for themselves and their families in return for their labour! I would ask whether under the old conditions of slavery, which this country did so much to abolish, it was not wise policy on the part of the slave owners to give adequate food to those who belonged to them. What do the Labour party ask for as a practical thing? They ask for a minimum wage. Why? In order that there may be enough money to provide a modicum of food for their families. But the hon. Member for Bow and Bromley went on to say that he was in receipt of £400 a year and would like to fix the minimum wage at that figure. I would remind the hon. Member on the basis of figures which I think are more than questionable as to the whole of the national income, it was only the other day pointed out by the Chancellor of the Exchequer that if the whole of the national income, amounting to £1,800,000,000, were divided among the families of this country, it would produce only about £200 per family per year, yet the hon. Member for Bow and Bromley is asking for £400 a year. I do not think he meant that seriously.

    Mr. LANSBURY Oh, yes.

    Mr. PETO Then the hon. Member is trying to get the meat of two eggs out of the shell of one.

    Mr. LANSBURY The hon. Member forgets that there is a multitude of people who are not allowed to work.

    Mr. PETO I am taking the total number of families and dividing among them the estimated national income of £1,800,000,000 a year. Why do hon. Members think it necessary to term coal mines a monopoly and talk about nationalising them? There is a better and much simpler way of dealing with the question. There are plenty of coal mines open for sale, and there is no reason whatever why hon. Members opposite, in direct touch with the great trade unions, if they think the coalowners are earning an unfair amount of profit, should not acquire coal mines for themselves and make the profit for themselves. They would see then exactly how much profit is made with the present wage scales.

    I propose to refer next to the Amendment which I wish to move to the Amendment of the hon. Member for Leicester. I entirely agree with the hon. Member’s Amendment so far as it refers to the considerable increase in the cost of living, and I propose to insert words expressing regret that His Majesty’s Government are not taking steps to forward the principle of a fair and equitable division between capital and labour of the profits of industry by co-partnership in view of the enormous addition that would ensue therefrom to the productive capacity of the country, the consequent cheapening of the cost of commodities, and the increase in the country’s power of competing in all other markets, and give wage-earners a human interest in their life and work, and place them on a moral equality with every other class. That is what I honestly believe, from the bottom of my heart, to be the true solution of this difficulty. If every industry in the country were carried on under this scheme it would mean a livelihood for all. It would enable men to decently support themselves and those dependent on them. If it is carried on for profit now it will have to be carried on for profit always. If we want to do away with this incessant friction between capital and labour we must do something to see that whatever profit is earned over and above what are the fair wages of labour and a fair return for capital is equally divided between those who work with their hands and those who work with their heads in the conduct and management of the business.

    I would indicate to the House what would be the advantages of such a proposal as is contained in my Amendment being generally adopted as a principle of trade in this or in any other country. First of all there would be an increased earning. That is the simplest question of all. The hon. Members opposite ask in their Amendment for the principle of a minimum wage. Instead of a minimum wage I suggest a fair division of profit, and labour would thereby get an increased wage and many other things beside. The next enormous advantage would be that then you would have two natural partners in every industry working for a common purpose, and there would be reconciliation between the interests of capital and labour. I wonder whether the House will think it a far-fetched simile if I describe the present condition of affairs by what would happen supposing anyone in charge of a great engine driving machinery in any works were every morning to put in a dose of sand and grit instead of lubricating oil. Yet that is the present state of affairs in the industry of this country. There is constant friction. I do not wish to specially blame any class for it. But there is constant difficulty, and the cause of friction is that you do not put in lubricating oil to make your machine work smoothly.

    Then there is the question of increased efficiency involving the lower cost of commodities. I do not think that anyone who has ever had anything to do with the productive industries of this country will question—if they think the matter over for a minute or two—the statement that there has been an enormous loss in efficiency. One hon. Member described what had taken place by the gradual diminution of output through one man trying to work down to another man’s level. Whatever industry a man is engaged in you are bound to have a feeling that it is no good doing too much for a fixed wage that cannot possibly be increased by any exertion on the part of the worker. As long as there is unemployment in the country I know from personal experience, particularly in the building trade, there is a very natural feeling on the part of men, especially in winter time, that as there are a great number of people out of work the smaller the individual output the better it will be. In other words, there is very little butter to be spread on the bread, and they therefore spread it as thinly as they can, so that everybody may have a share. I do not say that that is not a generous impulse. But the result of that is a reduction in the output of commodities, and the absence of the incentive to do an honest day’s work is perfectly disastrous both on the cost of production and on the cost of the articles produced.

    Then there is what I think is one of the most important of all the points with regard to this question of co-partnership: there is the interest in life and work. People who are in the fortunate position—I frankly admit it is a fortunate position, of which I have always had the advantage myself—of managing and working with the head and not with the hand, have got an enormous advantage, quite apart from the advantage received over the wage-earner under existing conditions. You have the one great incentive to work, the one great thing that makes the dullest work interesting and that makes life worth living, if it is a life of toil. I asked the House a few minutes ago to look back nearly one hundred years, to the slavery days. I ask them now to carry their minds back the same distance and to consider the conditions under which work was carried on then in this country. You had not these enormous aggregations of workmen and of capital or the enormous and minute subdivisions of trade. You hard then a few men, perhaps working in partnership or employing two or three hands apiece. In the great majority of cases the shipwright, the carpenter or joiner, and the man who made boots, purchased their own raw materials. They were capital and labour combined. They started and they finished their job and they had every satisfaction, both in the result from the moral point of view and the result from the economic point of view, that could be possibly got out of the work. What have we got now? I will only give one illustration. Take the man who built a ship 150 years ago. He had all the pride of the designer and of the man who could carry out every part of the small ship until it was finally launched. That was work which was not dull and of a routine character. Contrast that with the work to-day. One man from morning till night will be heating rivets; another will be holding them in position, and this on every day of the week, and week in and week out, with no interest in the result of the work, but for the wage. I ask the House to consider the enormous growth of trade which would result to this country, or to any country, which first generally adopts this principle. It would result from the increase of trade in the market of every other country which did not adopt this principle. We have had some reference to the question of Tariff Reform, but very few of them. I am an ardent Tariff Reformer, while hon. Members opposite, or most of them, are the reverse. We believe on our side of the House that the present commercial system of this country is a great handicap to our industry and is a drag upon the wage-earners. On the other hand, Members opposite believe that if we adopted the principle of an Imperial commercial policy it would be an enormous detriment to our trade, and perhaps that it would destroy our trade. I made the frank admission, strong Tariff Reformer as I am, that if under Free Trade this country generally adopted in all its industries the principle of co-operation it would so enormously lower the cost of production and increase its productive energy that we should be better off under Free Trade than other countries under the Protective system, who had still this friction going on between capital and labour.

    There is only one more thing I wish to say. It may be said it is idle to propose a sort of pious Amendment in favour of something to which neither this Government nor any Government could give effective force. I am all for dealing with something which I believe is a practical solution of this difficulty, which I believe is the only practical solution, and which I believe inevitably will come whether Governments move in the matter or not. The reason I am confident is that in every single case where a fair co-partnership scheme has been given fair play and a chance by those who are opposed to it, it has succeeded beyond the bounds of ambition and almost beyond the dreams of avarice. The hon. Member for Bow and Bromley (Mr. Lansbury) asked just now under what private employer could we possibly find an increase in wages at 20 per cent. I believe there are hon. Members in this House—I believe there is one hon. Member at any rate who will address the House on this subject—who can assure the hon. Member that not only is a 20 per cent. increase in wages possible under co-operation or co-partnership, but something infinitely better than that, something which means an increase far above 20 per cent. and which turns every wage-earner into a capitalist and compels every capitalist to be a wage-earner as well. It may be asked, What can any Government do? I say there are two things they can do. The Government have one enormous power in their hands—the power of taxation. I say it is perfectly possible, provided that any Government were convinced that it is in the interests of the country to do all in their power to forward this great principle of true partnership, for them to temper the wind to the shorn lamb, and they can say, where a fair and equitable system of profit-sharing is adopted, that they will make their Income Tax and all other direct taxes fall more lightly on those concerned. There is even a more direct way in which the Government can help. The Government are probably the largest employers of labour in this country, and just as they have it in their power to say that no firm shall be able to compete for a Government contract that does not pay a fair wage, so they can say they will only give the contracts for all public and national work to those firms who have adopted the great principle which is the only solution of the friction between capital and labour. I feel most strongly about this. I do not say anything about feeling great responsibility in addressing the House. I should feel that at any time, but I should feel a still greater responsibility if, either by not voting or by returning a direct negative, to the proposal of the hon. Member for Leicester, I tacitly and silently admitted that the remedy which he proposes is in any sense a true remedy, and could in any way assist the cause which I believe he has at heart, when I know there is another principle which has been all too little adopted in this country the general adoption of which will solve once and for all all questions of labour disputes.

  • Patricia Hewitt – 1997 Maiden Speech to the House of Commons

    patriciahewitt

    Below is the text of the maiden speech made by Patricia Hewitt in the House of Commons on 3 July 1997.

    Thank you, Mr. Deputy Speaker, for giving me this opportunity to make my maiden speech during the debate on the Budget. It has been a pleasure to listen to such fine maiden speeches this afternoon. I listened with interest to the speech of the hon. Member for Tunbridge Wells (Mr. Norman). Having spent many a pleasant weekend with friends in his constituency, I was sorry to hear that “Disgusted of Tunbridge Wells” remains disgusted. I hope that he will make good his offer to assist my right hon. Friend the Chancellor of the Exchequer by ensuring that Asda, the company with which he has had such a long association, participates enthusiastically in our welfare-to-work programme.

    This is, above all, a Budget for jobs and families, which is why it is being so warmly welcomed in the constituency that I have the honour to represent. I know that my pleasure in this Budget will be shared by my predecessor, Greville Janner, whom many right hon. and hon. Members will remember as an effective Chairman of the Select Committee on Employment.

    Greville Janner is remembered and known more widely for his lifelong opposition to racism in all its forms, for his distinguished presidency of the Board of Deputies of British Jews, for his sponsorship of the War Crimes Act 1991, and for his relentless pursuit of the secret repositories of Nazi stolen gold. In the constituency, however, he is remembered above all as an outstanding constituency Member of Parliament.

    I remember last year knocking on the door of one elderly woman, who told me most movingly how her grandson had died many years ago in a tragic accident swallowing the top of a biro pen, which, in those days, lacked the tiny hole that would have enabled him to breathe sufficiently to remain alive. It was Greville who led the successful campaign for that safety measure in product standards. It was that sort of campaigning on behalf of his constituents for which not only he but his father—his predecessor in this House—is remembered.

    Greville was one half of a unique father and son team, who between them represented my constituency for 52 years. Greville’s father, who subsequently became Lord Janner, did not announce his decision to retire until after the 1970 general election had been called. Greville used to tell the story of his selection with great amusement. He claimed—I am sure quite wrongly—that he was assisted by the fact that the election posters, “Vote Labour, Vote Janner”, had already been printed. I am sure that he would have been selected under any circumstances. He will no doubt forgive me if I say how grateful I am that his son decided not to follow in his footsteps.

    I also want to pay tribute to three other outstanding public servants who served my constituency. Councillor Paul Sood was one of the most outstanding fighters for the Asian community, not only in Leicester, but throughout the country. Tragically, he died last year, just a week after being re-elected to serve as the city councillor for Abbey ward in my constituency. It was an enormous loss, but I know how proud he would be to see his widow, Mrs. Manjula Sood, now serving in his place.

    All of us in the constituency were sad to hear last month of the death of Councillor Martin Ryan, who for many years was leader of the Labour group on the county council. He served, among other capacities, as the county councillor for the Mowmacre ward in my constituency. Just two days ago, I was also extremely sorry to hear of the death of the former councillor, George Billington, who had only recently retired as my predecessor’s parliamentary agent. I will do my best to live up to the extremely high standards of public service which they and my predecessors have set.

    I know that my hon. Friends the Members for Leicester, South (Mr. Marshall) and for Leicester, East (Mr. Vaz) will agree when I say that Leicester is a wonderful place in which to live and to learn. We are Europe’s first Environment City. We are home to two first-rate universities. Many of their students, especially those at De Montfort, live within my constituency.

    Although it may distress some right hon. and hon. Members to acknowledge this, now that Leicester holds the triple crown of sporting achievements in football, rugby and cricket, we are indeed Britain’s sporting capital. I am delighted to say that, now that the Millennium Commission has chosen the project for the national space science centre, to be sited within my constituency, as the landmark millennium project for the east midlands, we will shortly be the space capital as well.

    Leicester, West is a constituency of captivating variety. It stretches from the old industrial buildings along the banks of the River Soar and the Grand Union canal, which form part of the border of the constituency. It takes in a small part of the city’s old mediaeval centre—although, less happily, we also take in some of the inner-city ring road, built in the 1960s with a distressing lack of sensitivity for that old mediaeval heritage. It extends down the Belgrave road, which marks the border between my constituency and that of my hon. Friend the Member for Leicester, East, where the red brick cottages of 19th century weavers are now the heart of Leicester’s Asian community, and from there across to the new estate of Beaumont Leys and the longer-settled communities of Mowmacre, Stocking Farm, New Parks and North Braunstone.

    I know that residents, especially on those estates, will warmly welcome my right hon. Friend the Chancellor’s announcement yesterday that he would rapidly begin the release of council house receipts, which will make possible desperately needed repairs and renovations to their homes.

    Above all, Leicester is rich in its people. We are well known, and rightly so, for our cultural and racial diversity. By the year 2000, half the young people of our city will come from the ethnic minority communities. Leicester is fortunate to be home to many thriving businesses and to a variety of churches, temples, gurdwaras and mosques that are at the heart of the communities they serve. It is home also to a number of theatres, festivals and arts performances from a variety of different traditions.

    Like many of my constituents, I am a citizen not only of this country, but of another—in my case, Australia. In this Parliament, I am the only Member also to be an Australian citizen. Like many of my constituents, I know what it is like to have families in two countries, so I know how much many families in my constituency warmly welcomed my right hon. Friend the Home Secretary’s early decision to abolish the odious primary purpose rule.

    I must mention also the parks and open spaces with which my constituency is so richly endowed. Perhaps suitably for Europe’s first Environment City, Western park in my constituency is home to one of the country’s leading green charities and consultancies, Environ, along with the flourishing city farm on Gorse Hill—both of which will, I hope, play a considerable role in creating the environmental task force within the east midlands.

    I regret to say, however, that our enjoyment of some of our open spaces is all too often spoiled by the arrival of unauthorised travellers, who themselves have too few authorised sites to which to turn. I hope that my right hon. Friend the Deputy Prime Minister will be sympathetic to the case that I will be making on behalf of my constituents for a badly needed review of the previous Government’s law and practice in this area, which has proved so disastrous.

    Perhaps too often neglected in my constituency and others like it are the outer-city estates. Almost half of my constituents live on such estates. Listening to my right hon. Friend the Secretary of State this afternoon, I found myself thinking in particular of families struggling to bring up children in communities where anything up to one in four of working-age men are officially unemployed—and where, in reality, far more are out of work.

    Young men all too often turn to destructive or criminal activities, because no creative outlet is offered for their energy. Children are growing up, as one grandmother said to me in fury and frustration, to believe that the only way they can earn a living is to sign on for a giro.

    Those are the people whom the last Government locked into unemployment and poverty, and then derided as an underclass. The people I have the privilege to represent are no underclass. They want a chance of a job, a chance to earn a living, a chance to bring up their families decently, to live in safety and to retire with dignity. They want the same respect and opportunity’ as other people. That is what the Budget will begin to give them.

    Listening to today’s speech by my right hon. Friend, I thought of Betty, for example, who is a parent governor at Wycliffe community college, which is located on one of the estates in my constituency. Recently, Wycliffe community college was inspected by the Office for Standards in Education. One member of the inspection team asked Betty how the school coped with local parents and with families living on income support—”you know”, he said, “with the underclass.”

    Betty said, “I’m one of the people you’re talking about.” She told him, “I live on benefit—not because I want to, but because my husband lost his job and hasn’t been able to get another one, and because we bought our council house, just as the last Government encouraged us to do. Now we find that the only way we can pay the mortgage is to stay on income support.”

    Betty left school at age 15 with no qualifications, returned to school, through Wycliffe college, and got herself five O-levels, which in itself is no mean achievement. She would love to train and work as a classroom assistant, and that school would love to give her the job. She cannot take such a job, however, for the simple reason that, as things stand, her family would no longer be able to afford their mortgage. It is such poverty traps, which were created by the previous Administration, that force families such as Betty’s to choose between the job they need and the home in which they live.

    I know how much Betty’s family and families in a similar position will welcome the announcements made in the Budget, and today by my right hon. Friend the Secretary of State, about the Government’s welfare-to-work programme and their longer-term objective of creating a benefit system that will at long last reward rather than penalise hard work and effort.

    I thought also of Bill, who is a manager at one of the employment projects on a local estate. Bill was a construction worker—a roofer—until he was injured in a fall from the roof on which he was working. He now says, however, that that accident was the best thing that ever happened to him, because it gave him a chance to discover within himself gifts that he did not know that he had. He is now running an employment advice project, into which he has introduced some wonderfully sophisticated software that, with his guidance, enables people who are lacking not only a job but the most basic confidence to start exploring their own real aptitudes and aspirations before taking that first step into training or a job.

    Bill said, “I know how hard it is to change. But I also know that people can do it, because I’ve done it myself.” I believe that the Government’s welfare-to-work programme will mobilise community groups such as Bill’s, marrying the bottom-up energy and potential of millions of people across the country to the Government’s top-down strategy and vision.

    I thought also of the lone mothers in my constituency who began another group, which they called Turning Point, because that is what it was for them. Originally, those lone mothers met to support one another over a cup of coffee around a kitchen table, but now they are running their own thriving voluntary organisation.

    I thought also of the staff and parents—fathers and mothers—who run creches and playgroups that have been starved of funds, sometimes to the brink of closure, because of the previous Government’s local council budget cuts. They are able to offer not only child care places but—in response to yesterday’s very welcome announcement—training places for young unemployed people who wish to work with children.

    I am sure that, like me, those parents hope that my right hon. Friend the Secretary of State will ensure that lone parents under the age of 25 who have spent six months or more out of work and on income support will be able to access the opportunities created by the welfare-to-work programme in the same way and on the same terms as other young people who have been on job seeker’s allowance.

    After listening to yesterday’s Budget and to today’s debate, I thought also of the teachers working and living in my constituency. Their dedication was scorned by the previous Government. Our new unitary council shares the new Government’s determination to ensure that all our children have a chance to fulfil their potential, whether they live in inner cities, in suburbs or on outer estates.

    I know that my right hon. Friend the Secretary of State will not be at all surprised if I say that several Leicester schools—including Dovelands junior school and Bendbow Rise infant school, which is in my constituency, and recently did its best to celebrate an anniversary while the rain poured in through the roof—will be early in the queue for the very welcome new capital funding and private finance initiative announced yesterday.

    Finally, I thought of the hundreds of women and men, many of whom are retired, who are now volunteers in so many community organisations, such as social clubs, youth sporting groups, children’s bands and other organisations. I thought also of the sometimes wholly unrecognised individuals who, in their own homes, are looking after children and other relatives with profound disabilities. Our social fabric is woven from all their efforts.

    Those men and women, and many others like them, are the heroes and heroines of my constituency. They and thousands of other people across the country will be the heroes and heroines of the new Britain that we were elected to build, and for which the Budget lays such a magnificent foundation.