Tag: 2010

  • George Young – 2010 Speech to Hansard Society

    Below is the text of the speech made by Sir George Young to the Hansard Society on 18th March 2010.

    Thank you, Peter, for that introduction – and thank you also to the Hansard Society for inviting me to speak to you this evening.

    I’ve had the good fortune to be closely involved with the Society over many years, including as a former Vice President. Everyone who works in politics knows what a tremendous contribution it makes both to the public’s understanding of Parliament and to the way Parliament works.

    It not only monitors the health of our democracy – it’s also on hand to prescribe the right medicine when the body politic is under the weather. We’ve seen that recently, with the unexpected but welcome progress that has been made introducing the reforms of the Wright Committee on the Reform of the Commons; issues on which the Hansard Society has been campaigning for many years.

    I’m particularly delighted to be winding up this series of three talks on parliamentary reform. If you put all the speeches from the different parties together, you can see where we agree; where we disagree; and work out how, in the next Parliament, things might be different if the Conservatives win.

    The last few weeks have seen the House of Commons make some big – and positive – decisions to change the way it operates. Given the disastrous year Parliament has endured, these are necessary reforms. The challenge before us is to implement them in the little time that remains before the election; and then to build on them in the next Parliament. The House has suffered something of a cardiac arrest; our task must be to revive it and ensure that it becomes the beating heart of democratic life.

    What’s gone wrong?

    I’m not suggesting that there is a mythical golden age to which Parliament can return. I agree with Jack Straw that no such time ever existed. Governments of all colours and from all ages have sought to erode Parliament’s authority and compromise its ability to assert itself. The enduring tension between the executive and the legislature lies at the centre of British politics.

    But we risk looking at least complacent, at worst fully detached, if we fail to recognise that the current public mood relates to a widespread sense of dissatisfaction with the way Parliament does its job.

    Trust – or the lack of it – plays its part. Last week, newspapers reported the headline finding from the Hansard Society’s annual Audit of Political Engagement as “expenses scandal does not cause collapse in trust”. MPs rushing to read the good news will have been disappointed. Underneath the headline was the depressing realisation that the 70 per cent who said they distrusted politicians 7 years ago haven’t changed their mind. Suspicion has just hardened into cynicism.

    What concerned me more was the indifference with which an increasing number of people appear to view Parliament. This message is strikingly conveyed by the finding that just one in five people think Parliament is one of the institutions that have the most impact on their lives – a sharp decline from previous years.

    To borrow from Oscar Wilde, the only thing worse than Parliament being talked about, would be for Parliament not to be talked about. The House depends for its relevance on the strength of its relationship with the electorate. When it speaks to the concerns of the nation, the Chamber is lively and constructive; but when it retreats into itself, debate becomes ritualistic and purposeless. It is this sense of purpose which Parliament has lost. And in a moment I will outline our proposals to make it more relevant and effective.

    Labour’s record

    It would be unfair to lay the blame for this state of affairs entirely at Labour’s door.

    I was shadow Leader of the House in their first term; and now I am shadow Leader in what I hope will be their last. This has given me a good perspective on their approach to reform. And it’s not all been bad.

    Under the banner of modernisation, real improvements have been made to the working practices of the House. Our sitting hours are more sensible and more reflective of the patterns of modern life. No one wants to return to all-night sittings to tramp the lobbies in their dressing gowns. We work now in a more balanced and professional environment. To prospective MPs who are women with young families, it will seem a less intimidating place of work.

    There have been other successes. Westminster Hall – for which I was the sole and lonely cheerleader on Conservative benches – has opened up greater opportunities for backbenchers to raise constituency issues. Public Bill Committees are a considerable improvement on Standing Committees benefiting from formal evidence sessions before the detailed scrutiny.

    The Prime Minister’s appearance before the Liaison Committee twice a year is another welcome innovation, which has provided a more reasoned forum for scrutinising the Prime Minister than the hurly-burly of Question Time. Though I say in passing that they have not in my view reached their full potential. Two and a half hours interrogation of the country’s Prime Minister by the country’s top inquisitors should elicit more information than it has done to date about what makes Prime Ministers tick and, if it was more effective, it would get more coverage than it does at the moment. As a former participant, I take my share of the blame for this.

    While Parliament needed modernizing, it certainly needed strengthening; and too often the measures that modernized it, weakened it. Lasting reform can only take place when there is agreement between the competing interests in the House – but too often the Government proceeded on the basis that what was good for it, was good for everyone. That has sadly not been the case.

    The main vehicle for reform – the Modernisation Select Committee – initially managed to foster a sense of collaborative engagement. But instead of being chaired by a senior backbencher, to speak with the authority of Parliament, it has instead been led by a Cabinet Minister, who acts under the direction of the Government: a clear conflict of interest that we have promised to end. The Leader of the House is the member of the Cabinet charged with delivering the Government’s legislative programme through the House of Commons. It is a constitutional affront that that same person should also chair the Committee which decides how the House of Commons will scrutinise that programme.

    Inevitably, having such a powerful executive presence on the Committee has led to a divisive approach to reform. Instead of the process being owned by the House – as it should be – it has been at the whim of the Government. When it has suited the Government, reforms have made progress; when it doesn’t, they don’t.

    We have seen how ready the Government are to push through unwelcome proposals, even using the casting vote of the Leader of the House to introduce the unpopular regional select committees – which we propose to abolish.

    I witnessed this at first hand as a former member of the Modernisation Committee, when for the first time in my 35 years in the House the Government broke with all-party consensus to force through a report on programming. The minority report that I produced with my Conservative colleagues to protest against these changes was voted down. The Government simply deployed its majority both in the Committee, and then on the floor of the House, to introduce what was in effect an automatic guillotine on all Government legislation.

    The then Leader of the House Margaret Beckett argued that the guillotine was a way to cut down on late sittings and allow MPs to invest more time in their families. But it was heartening last week to hear Jack Straw publicly accept that programming had undermined effective scrutiny. I hope that Labour will now follow my pledge to return to the more collaborative approach to timetabling business that existed before. As a seasoned campaigner for a stronger Parliament, you will forgive my scepticism.

    Constitutional Reform

    Too often the Government offers words of support, and then fails to act on them. The initial spark of enthusiasm for one morning’s good headline never seems to burn as brightly the following day.

    You only have to look as far as Labour’s flagship Constitutional Reform and Governance Bill to see the divorce between the rhetoric and the reality. In the week that Gordon Brown entered Downing Street in 2007, he announced plans for a “new British constitutional settlement”1 to thrust power into the hands of Parliament and the people.  I welcomed his statement.

    But what happened? A Bill was published in draft form; it was put before a joint committee for urgent consideration; the committee completed its work in haste at the request of the government by July 2008 – and then the Bill was lost without trace into the legislative Bermuda Triangle for a whole year. Having just about made it through the Commons low on fuel, it will now be glimpsed below the clouds by their Lordships at Second Reading on March 24 before being downed in thick fog in the remaining days of this Parliament.

    There has been little or no progress on nine of the twelve areas where Brown pledged action – such as a Commons vote to trigger dissolution – to transfer power from the executive. Rather than strengthening parliamentary accountability, the Bill itself was so tightly programmed in the Commons that at least 28 clauses – about a third of the Bill – were not debated at all. And although this was designed to reinvigorate democracy, the last minute insertion of a referendum on AV was a pre-election stunt that serves only to undermine it.

    This has not been, as the Prime Minister predicted, “an important step forward” – but rather, as the former Lord Chancellor Lord Falconer pertinently called it, a “constitutional retreat”.

    Wright Reforms

    The Government was also in headlong retreat on Commons reform – though I’m pleased to say they are now finally running, if you’ll excuse the pun, in the right direction.

    The vote on Wright was doubly significant because the proposals that the House overwhelming endorsed on 4 March were not dictated by the Leader of the House and pushed out by the Modernisation Committee. Instead, they were introduced by a committee whose chairman, Tony Wright, is a well-respected backbencher and whose members were elected by their peers, not nominated by the Whips. Instead of enabling the Government to break the consensus on reform – as it has previously done – a consensus in the House broke the Government.

    Harriet Harman implausibly argued during the debates that the Government was always on the front foot. But while they have dragged their feet, it was the reformers, supported by the Conservatives, who have been pushing the pace of reform.

    We opposed the Government’s attempts to restrict the terms of reference, which would have strangled the House Business Committee at birth. We pressed them for time to debate the report after it was published. We forced them to give the House a vote on all of the proposals. We called for the establishment of the Backbench Business Committee at the beginning of the next Parliament – something even the Wright Committee appeared reluctant to see. And it was only after I threw our weight behind the creation of a House Business Committee that Harriet Harman conspicuously reversed her previously stated opposition and indicated that she would support it.

    The Government failed to recognise that the harder they tried to resist, the more effectively their own actions made the case for the executive relinquishing its iron grip on the business of Parliament. As the Labour MP Martin Salter memorably put it, “The power of these shadowy forces at work behind the scenes demonstrates more clearly than ever why the Wright Committee recommendations need to be implemented in full, and that the clammy fingers of the whips and Government business managers are prised once and for all off matters that are for Parliament rather than for party”.

    Reformers from across the House should be delighted by the results of the votes a fortnight ago. It was a March Revolution – a definitive victory for Parliament over the executive. The decisions that the House took to elect select committee chairmen and members, create a Backbench Committee and lay the path towards a more collaborative way of handling our business were necessary and long overdue.

    The challenge now is to put these sensible changes into practice. I was particularly struck by the words of Tony Wright during the debate when he warned that setting up new structures is easy, but it is more difficult to make them work. As he said: “In a way it is easy when we can blame the Government for everything, but from now on we shall have to attend to ourselves and take responsibility for ourselves. If we do not do that, this is not going to work; it will be sunk”.

    We now have just 9 or so days in the remainder of this Parliament to implement the decisions. There is no room for error within such a tight timescale.

    Harriet Harman said today that she will find time to debate all of the necessary changes to Standing Orders. But there is a growing concern that this may not happen before dissolution. Such a delay would jeopardise the ability of the Backbench Committee to be up and running in time to set the first topical debate of the new Parliament.

    What’s next?

    The big question that remains is: what should happen next? Given Parliament’s self-inflicted wounds, have we done enough to stop the bleeding?

    My answer is emphatically, no. Parliamentary reform is not a single day’s work. To many people, it may seem a painfully slow and arcane process, but when the circumstances are right – as they are now – it has the opportunity to transform not just Parliament, but the way we do politics as well.

    I want to make it clear to you tonight that, if we win the election, the Conservatives will not rest on the achievements of the last few weeks. But we will use the momentum created by the Wright Report, build on the consensus that has been established and feed off the energies of a new generation of MPs.

    Yes, there will be other big priorities for the next government – not least paying down the national debt. But we know that urgent action is needed to cut the democratic deficit too. Just as we will rebalance our finances to get growth back into the economy, we will also rebalance the power between government, Parliament and voters to bring confidence back to politics.

    So let me outline a number of areas where we will help make Parliament more independent; increase its role in national debate; sharpen its tools of scrutiny; and strengthen its accountability to the people it serves.

    Conservative proposals

    Many of Parliament’s current problems stem from the over-interference of the executive. The Government is formed from Parliament – it doesn’t own it and it shouldn’t have so much say over how the House is run. We are committed to abolishing the Modernisation Committee and will return its agenda to a revitalised Procedure Committee, chaired by a senior backbencher, elected by secret ballot of the whole House.

    But the new rules on electing the heads of select committees will also lend new authority to the Liaison Committee – whose chairman should now take a greater lead than before in charting the direction of reform. Other than their landmark report “Shifting the Balance” in 2000, they have focused more on their evidence sessions with the Prime Minister than spelling out their vision for the House in greater detail. In the future, I believe they should do that.

    To help them meet this challenge, we will break the monopoly on statements currently held by ministers and hand to the Liaison Committee a quota of 12 statements a year, which can be drawn on to enable select committee chairmen to launch their reports to the House and answer questions on them. So when select committees have got something important to say, such as today’s report from the Defence Committee on the need for a comprehensive approach to securing peace after military operations, it won’t be buried in a press release and relegated to a few columns in a newspaper; but broadcast live to the nation in prime time.

    This will help the House become a platform for debating the issues of the day. And we’ll go further. Too often the Chamber can seem like a sea of green benches, particularly during thinly attended Opposition debates. So we will allow the Opposition to trade the time allocated on those debates to force the Government to give topical statements on the issues of the day – again in prime time.

    As the Wright Report observed, all too often MPs themselves do not see the point of making the House the primary focus on their activities. But our proposals will seek to transform this by replacing long and turgid debates with short and punchy statements that will get far greater air time. You only have to compare the amount of media interest that was shown in Tuesday’s statement on BA with the equally topical but less gripping debate later that afternoon on higher education to understand the impact. Parliamentary theatre can be as gripping as the real thing – but we need to make better use of the stage.

    Backbenchers aren’t in Parliament just to talk – they’re there to scrutinise legislation and improve the law. While we give them more of a voice, we must also sharpen their teeth.

    Making law is a two-sided process: the executive should keep a handle on the volume of legislation that it tries to pass, while the legislature needs to have enough time to give proper attention to every part of every Bill. At the moment it’s going wrong in both respects. There is currently too much legislation, produced too often, with too little effect. And while the Government churns out Bills like press releases, there has been no effort to give the Commons the time and the tools it needs to examine them in detail.

    We all know what happens when our brains don’t get enough oxygen. Time is the oxygen of Parliament. At the moment, the sheer volume of legislation is suffocating the House. We will give it the breathing space to be able to undertake its scrutiny in a measured and considered manner, without forcing it to hyperventilate.

    We will start from the premise that there should be fewer Bills, more thought-through and better prepared for their journey through the House. I applaud the work of the Better Government Initiative in this area and their principles will inform our approach, should we win the election.

    Legislation is too often drafted on the hoof; which forces Parliament to do the heavy lifting that should have been done at an earlier stage by officials. In the 2007/ 08 session, the Government tabled well over 5,000 amendments to its own Bills. It is absurd to expect the House to take the hit for inadequate preparation in Whitehall.

    We’ll abolish the automatic guillotine for Public Bill Committees, as I said earlier, which will give backbenchers more time for proper scrutiny. And we need to look closely at the Report stage of Bills where real issues of timing remain. I’m in favour of more split committee stages, where some of the committee stage is taken on the floor of the House, so that more backbenchers would have an opportunity to contribute at an earlier stage of the Bill – as well as stricter time limits on speeches so that some of the pressure is taken off timing.

    More effective mechanisms such as these will help to make the Commons better at holding the Government to account – which in turn will build public confidence in what MPs do.

    Lords Ministers in the Commons

    The work of MPs has for decades stretched only as far as the Committee corridor and the Chamber of the Commons. But over the last three years, we have had to confront a new beast on the political landscape.

    These stubborn, independent and wily creatures initially bred in great numbers – and in one case spent his time acquiring vast tracts of territory across Whitehall. But these animals are evasive too; and while they have been allowed to roam free and unrestrained, there is currently no means of bringing them to heel.

    These are, of course, the Goats – those ministers appointed from outside Parliament to sit in the Lords and form Gordon Brown’s famous Government of all the talents.

    Since July 2007, there have been ten peerages awarded to individuals so that they can function as ministers including two secretaries of state: Lord Mandelson, who needs no further introduction, and Lord Adonis, at Transport.

    This is not a new development – there have been nine secretaries of state sitting in the Lords since 1979. What is unusual is for their departments to be accountable to the Commons only through junior ministers. Under Conservative governments, there was typically another minister of Cabinet rank who handled departmental business in the Commons.

    There is no such equivalent today. Lord Mandelson delegates Commons work to Pat McFadden; Lord Adonis to Sadiq Khan. Both are doubtless competent ministers.

    But it is frustrating that at a time of economic fragility, with industrial strikes brewing, that the Cabinet Ministers with responsibility for industry and transport are unaccountable to the House.

    I have made clear in a submission to the Procedure Committee that the current state of affairs must now end and a way should be found for Lords Ministers to be cross-examined, like the rest of their peers in the Cabinet, by MPs.

    We should start in Westminster Hall, requiring ministers who sit in the Lords to respond to debates where responsibility for that particular issue rests with them. The Committee will publish their report on Monday; and I hope they will agree with me that it is time to tether the goats.

    Cutting the size of Parliament

    Our proposals will help to make Parliament a more formidable inquisitor of the Government; and a more relevant force for the public.

    But we cannot start work on cutting the democratic deficit without acknowledging that the first priority of the new Government will be to tackle the financial deficit.

    We all know that whoever is in power after May 6 is going to have to make some difficult decisions on spending. These won’t just be taken by the Chancellor; or even the Cabinet; they will require the collective will of Parliament. And at a time when we are calling for restraint from the public and the private sector, it’s vital that Parliament leads by example and does everything it can to search for efficiencies.

    Over the last thirteen years, the cost of politics has doubled. But we haven’t seen double the benefits. So just as we try to achieve more with less in the public sector, so we must in Parliament.

    There are too many MPs. The House of Commons is the largest lower house of any major Western democracy. Even the world’s largest democracy, India, makes do with 545 MPs.  By comparison, the UK has 20 per cent more MPs but just 1/20th of their population.

    This is why we have pledged to create a smaller House of Commons. If we win, we will introduce legislation to instruct the Boundary Commission to reduce the number of MPs by ten per cent in time for an election in 2014. By May 2015 the House of Commons could have 585 members – a cut of around 65.

    These proposals will have the potential to save over £15 million a year. And it will give an even more valuable political signal during this time of fiscal restraint: that we are all in this together.

    And on this, the public are right behind us.

    Far from being anti-democratic, we will help reduce the inequities in the electoral system at the same time as we bring down the costs. At the moment, the electoral maths is skewed. In 2005, Labour polled seventy thousand fewer votes in England than the Conservatives, yet won ninety-two more seats.

    Jack Straw has accused us of gerrymandering. It’s a claim that’s hard to swallow given their recent conversion to the Alternative Vote. If AV had been used in 2005, it would have delivered more seats for Labour than the first-past-the-post system, even though the party only secured 36 per cent of the popular vote.

    What’s more, leading academic experts have said that our proposals would make little change to Conservative representation.

    On our direction, the Boundary Commission will ensure that every constituency is roughly the same size. This will address the disparities that exist between constituency populations – and give each vote an equal value. What could be more democratic than that?

    Conclusion

    I want to end on a broader reflection. Society has changed, but Parliament has not. As the constitutional expert Professor Vernon Bogdanor has said, power has not been handed to people, it has merely passed “between elites”.

    Our task now must be to drive much wider cultural reform in Westminster – not just cleaning up politics, but transforming it. That is why we are committed to a substantial shift of power from the centre down to the local; from Whitehall to communities; and from bureaucracy to democracy.

  • Yvette Cooper – 2010 Speech to Labour Party Conference

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    Below is the text of the speech made by Yvette Cooper, the then Secretary of State for Work and Pensions, to the Labour Party conference on 27th September 2010.

    Conference,

    Last week I talked to a mother in my constituency.

    Her daughter Ellis is 16.

    She got her GCSEs this summer. Her mum said she worked really hard.

    She was due to start an apprenticeship this September at a local nursery school.

    In August they told her the coalition Government has cut the funding.

    Her mum was told Ellis can still do her training.

    But only if she forks out £1,200. That’s £1,200 she and her family haven’t got.

    Conference this is the Britain David Cameron and Nick Clegg want to build.

    Hopes betrayed.

    Ambitions abandoned.

    Young people left to sink or swim.

    Unless you can afford to pay yourself.

    This is what the Big Society really means.

    And this is why, for Ellis and thousands like her, we have to fight to get the Labour Party back into Government as soon as we possibly can.

    And that is why we need to come together now, behind our new leader, Ed Miliband, who will lead us in:

    – exposing the madness of the Tories’ attack on jobs,

    – challenging the deep unfairness of their plans,

    – and fighting the biggest assault on families in any of our lifetimes.

    Conference, throughout our history the Labour Party has fought for jobs.

    Remember as recession started, economists said unemployment would reach 3 million.

    That is what happened in the Tory recessions of the 80s and 90s.

    But this party vowed we would not let that happen again.

    Government, businesses, unions , councils, voluntary groups all pulled together.

    Backing jobs building new schools and homes.

    Guaranteed work or training for young people.

    Working together to keep Britain working.

    Look at the results.

    The dole queue started coming down last autumn.

    Far earlier than in any other recession.

    Far below the 3 million predicted.

    One and a half million fewer people on the dole than in the 80s and 90s recession.

    One and a half million more people in work supporting their families. That is Labour’s achievement and this party should be proud of it.

    And Conference I saw the pressures Labour’s Chancellor faced, the decisions Alistair and Gordon took, that:

    – stopped banks crashing,

    – stopped millions of people losing their savings,

    – saved jobs.

    Conference we should pay tribute now to Gordon and Alistair for the work they did for this country.

    Over the summer, the world economy ha s slipped back into more dangerous waters.

    In Ireland the sharp austerity drive has triggered a double dip recession.

    Here at home private sector job growth is still too weak.

    Vacancies have dropped in the last three months.

    And the number of people on the dole has gone up for the first time since January.

    So what is David Cameron’s answer?

    To cut jobs just when we need them most.

    George Osborne’s own Budget said 100,000 more people on the dole each and every year, just as a result of the decisions they made.

    Over the next few years, Treasury’s own papers show:

    – Half a million jobs lost in the public sector,

    – Over half a million jobs lost in the private sector,

    – Half a million fewer jobs and opportunities for the unemployed.

    So what do ministers have to say to the 90,000 young people now being denied a job on the Future Jobs Fund.

    David Cameron said the Future Jobs Fund was “a g ood scheme” and “good schemes we will keep”.

    But he didn’t keep it. He abolished it.

    Nick Clegg was asked whether these job cuts were fair. He said “of course it isn’t…. It’s a decision taken by the local council.”

    But Nick, it wasn’t a council decision, it was a decision announced by a Liberal Democrat Government Minister.

    Doesn’t this tell you everything you need to know about this coalition.

    David Cameron tells people whatever they want to hear.

    Nick Clegg tells them it’s someone else’s fault.

    And we in the Labour Party must make sure every conceit and every deceit is exposed for what it is – a betrayal of young people across Britain.

    And what reason do they give for cutting so many jobs?

    They say they need to do this to get the deficit down.

    Conference, of course the deficit does need to come back down. And that will mean some tough and unpopular decisions.

    But cutting jobs to get the deficit down?

    More people on the dole to bring the deficit down?

    What planet are they on?

    We’ve heard the Tories say this before.

    In the 90s they told us that “unemployment is a price worth paying to bring inflation down”.

    20 years later they are telling us again unemployment is a price worth paying to bring the deficit down.

    Both times they were badly wrong.

    Unemployment is never a price worth paying.

    Rising unemployment pushes the deficit up not down.

    Every 100,000 people on the dole costs us £700 million in lower tax and higher benefits.

    Unemployment isn’t the price of bringing the deficit down.

    Higher unemployment means we all will pay a higher price.

    Nick Clegg claims the public finances are like a household budget, and we have to cut back quick.

    But think about it. Because this is a family with a choice to make.

    It’s a family with a mortgage who cut the rep ayments when dad lost his job in the recession – to make sure they could get by til he found work, and to make sure the family didn’t lose their home.

    And now they have a choice.

    Make good those repayments steadily, bit by bit. Go for some extra overtime or promotion, tighten their belts a little. But spread the payments sensibly.

    Or follow the George Osborne plan. Pay it off all at once. Sell the furniture, the car that gets mum to work, sell the dog, even the house itself – whatever it takes to get the debt down.

    The truth is that every family knows cutting back too far too fast causes deep damage and ends up costing you far, far more.

    Unemployment won’t get the deficit down, more people in jobs will get the deficit down.

    Conference, our task is getting more people into work

    That means supporting jobs and yes it also means going further on welfare reform too.

    We brought in extra help and stronger rules. We cut the numb er of people stuck on out of work benefits. But we need to go further.

    We know from the doorstep, we talked to parents worried about whether their children could find work, neighbours worried that other people weren’t playing by the rules.

    We should have started sooner on reforms to help people off long term sickness benefits and into work.

    And we should go further to guarantee more jobs, but to require more people to take them up.

    Opportunities alongside obligations.

    But that’s not what this coalition is doing.

    Iain Duncan Smith says he wants more people in work.

    But George Osborne is cutting jobs for them to go to.

    Iain Duncan Smith says he wants people to be better off in work.

    But George Osborne cut working tax credit.

     

    Iain Duncan Smith says he wants more conditions on claimants.

    But the Government is ending the requirement for young people to take work.

     

    Iain Duncan Smith says a lot. But no one else in Government seems to be listening.

     

    He said himself, he was the quiet man.

     

    So quiet no one else can hear.

     

    They’re not setting out welfare reforms to help people into work. They’re just setting out old fashioned cuts that hit the poorest hardest.

    George Osborne is swaggering round like the playground bully – working out who won’t fight back, picking on the weakest – and that’s just Iain Duncan Smith.

    Hitting the poorest harder than the rich.

    Women harder than men.

    Hitting the sick and disabled.

    Pensioners and children are being hit hardest of all.

    The nasty party is back, and this time they’ve brought along their mates.

    From this April, over 50,000 of our poorest pensioners will lose an average £11 a wee k from their housing benefit.

    Thousands of pensioners who will struggle to pay the rent.

    Conference this party believes people who worked all their lives have a right to a secure home in their retirement.

    And we should be proud of action we took to lift 600,000 children out of poverty. But the government is trying to turn back the clock.

    Cutting maternity allowance, ending the child trust fund, the baby tax credit.

    Taking £1200 from working families with new born babies in that important first year of life.

    At least Margaret Thatcher had the grace to wait til the babes were weaned before she snatched their milk.

    That money is what lets a new mum stay home with her little one a bit longer before she goes back to work to pay the bills.

    It lets new dads cut back on the overtime so they can spend more time at home.

    For thousands of new parents across the country, that money means precious, precious time at the start of a family’s life.

    David Cameron said this would be the most family friendly Government ever.

    In fact they have launched the biggest assault on the family in the entire history of the welfare state. And this party must fight it all the way.

    This is a Government which just doesn’t understand women’s lives.

    They’ve halved the number of women in the government – and let’s be honest we needed more women before.

    George Osborne’s Budget hit women three times as hard as men.

    £8 billion raised, £6 billion of it from women.

    Even though women earn less and own less than men.

    Nick Clegg says things like working tax credits, child benefit, carers allowance make people dependent and should be cut back.

    For millions of women across Britain the opposite is true.

    The tax credits help mums pay for child care so they can go out to work.

    The carers allowance helps daughters look after their elderly parents.

    That support doesn’t make them dependent. It gives them greater independence, greater choice about how to cope with the different pressures of work and family life.

    Conference, all my life I have assumed that each generation of women would do better than the last.

    I know I’ve had more choices, more opportunities than my mum and my grandma, not least because of the battles they won.

    With each generation, I assumed, we would break more glass ceilings, change more of the world.

    But now for the first time I worry about my daughters, about all our daughters. For the first time I worry that our daughters will have fewer chances in life than we did.

    Conference, for women across Britain, backed by the Labour Party, the fight back starts here.

    Throughout our history the Labour Party has fought for equality.

    Fought for working families.

    Fought for dignity in old age.

    And throughout our history – from the Jarrow marches to the New Deal – we have fought for jobs.

    Fighting for jobs, backing our economy, standing up for fairness, united behind our new leader; this must again be Labour’s crusade.

  • Nick Clegg – 2010 Speech to the United Nations Millennium Development Goals Summit

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    Below is the text of the speech given by the Deputy Prime Minister, Nick Clegg, to the United Nations Millennium Development Goals Summit on the 22nd September 2010.

    It is an honour for me to address the General Assembly today for the first time as Deputy Prime Minister of the United Kingdom.

    And it is a privilege to be here with you to discuss how together we can reach the Millennium Development Goals;

    To make the necessary commitments towards eradicating the problems that blight the world we share:

    Poverty, hunger, disease, and the degradation of our natural environment.

    This week we are reviewing progress, assessing obstacles, and agreeing a framework for action to meet our targets.

    These are the technocratic terms in which governments must necessarily trade.

    But let us be clear: behind the officialese of summits lies our single, common purpose:

    To uphold the dignity and security that is the right of every person in every part of the world.

    Development is, in the end, about freedom. It is about freedom from hunger and disease; freedom from ignorance; freedom from poverty.

    Development means ensuring that every person has the freedom to take their own life into their own hands and determine their own fate.

    The last decade has seen some important progress.

    That progress has, however, been uneven, and, on a number of our goals we remain significantly off track.

    Britain’s commitment

    So my message to you today, from the UK government, is this – we will keep our promises; and we expect the rest of the international community to do the same.

    For our part, the new coalition government has committed to reaching 0.7% of GNI in aid from 2013 – a pledge we will enshrine in law. That aid will be targeted in the ways we know will make the biggest difference.

    And I am pleased to announce today that the UK will be stepping up our efforts to combat malaria.

    In Africa, a child dies from this disease – this easily preventable disease – every 45 seconds. So we will make more money available, and ensure that we get more for our money, with the aim of halving malaria-related deaths in ten of the worst affected countries.

    The UK government is also proud to be boosting our contribution to the international drive on maternal and infant health. Our new commitments will save the lives of 50,000 mothers and quarter of a million babies by 2015.

    The case for development

    The UK makes these commitments at a time of significant difficulty time in our domestic economy.

    The new government has inherited a £156bn budget deficit, so increasing our international aid budget is not an uncontroversial decision.

    Some critics have questioned that decision, asking why, at a time when people at home are making sacrifices in their pay and their pensions, are we increasing aid for people in other countries?

    But we make this choice because we recognise that the promises the UK has made hold in the bad times as well as the good – that they are even more important now than they were then.

    Because we understand that, while we are experiencing hardship on our own shores, it does not compare to the abject pain and destitution of others.

    Because we take seriously the fact that the new coalition government is now the last UK government able to deliver on our country’s promises in time for the 2015 MDG deadline.

    And because we know that doing so is in our own, enlightened self-interest.

    When the world is more prosperous, the UK will be more prosperous. Growth in the developing world means new partners with which to trade and new sources of global growth.

    And, equally, when the world is less secure, the UK is less secure within it.

    Climate change does not somehow stop at our borders.

    When pandemics occur, we are not immune.

    And when poverty and poor education fuel the growth of global terrorism, our society bears the scars too.

    Twenty two of the thirty four countries furthest from reaching the MDGs are in the midst of or emerging from violent conflict.

    Fragile spaces – like Afghanistan – where hate can proliferate and terrorist attacks can be planned, where organised criminals can harvest the drugs that ravage our streets, where families are persecuted, displaced, pushed to seek refuge with us.

    So we do not see the Millennium Development Goals just as optimistic targets for far away lands; they are not simply charity, nor are they pure altruism.

    They are also the key to lasting safety and future prosperity for the people of the United Kingdom, and of course, for people right across the globe.

    On what we expect of others

    We welcome the General Assembly’s agreement to annually review progress made against the commitments agreed at this Summit.

    The UK will stand up to that test.

    Today I call on others to show equal resolve.

    The Millennium Development Goals must be a priority for each and every nation present in this room. Developed nations must honour their commitments.

    And developing nations must understand that they will not receive a blank cheque. Developing countries and donors must work together – as equal partners – towards securing our common interest.

    They will be expected to administer aid in ways that are accountable, transparent, and responsible – creating the conditions for economic growth and job creation.

    Prioritising national budgets on health, infrastructure, education and basic services.

    Managing natural resources, particularly biodiversity, in an environmentally sustainable way. Improving the lives of women and girls: empowering them; educating them; ensuring healthy mothers can raise strong children. There can be no doubt that women and girls hold the key to greater prosperity: for their families, for their communities, and for their nations too.

    Conclusion

    If we each step up, we can meet the Millennium Development Goals.

    We can liberate millions of people from daily suffering, and give them the resources to take control of their lives, and their destinies.

    So let future generations look back and say that they inherited a better world because – at this critical moment, at this difficult moment – we did not shrink from our responsibilities.

    Let them say that we rose to the challenge, that we kept our promise.

  • Nick Clegg – 2010 Speech on Social Mobility

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    Below is the text of the speech made by the Deputy Prime Minister, Nick Clegg, on 18th August 2010.

    As of today, the new Coalition Government is 100 days old. Inevitably there is a plenty of discussion about our performance to date. Everyone will have their own view about the start we have made.

    I am proud of our achievements so far, from civil liberties, to political reform, to steps to reshaping our public services. And of course, our first Budget, which set out our plans to repair the public finances.

    Our critics characterise us as being solely defined by our public spending cuts. So let me be clear: tackling the deficit is our immediate priority. But is it not our be-all and end-all. This Government is about much more than cuts.

    This Government is committed to the long term – to making decisions today that will promote a better future: a more prosperous economy, and a fairer society. Our determination to fix the deficit is matched by our determination to create a more socially mobile society.

    Today I will set out:

    – How we are a Government focused on the long-term;

    – Why our long-term social policy goal is social mobility;

    – The key obstacles we face in promoting social mobility; and

    – The next steps we will be taking as Government to overcome them.

    Let me start by outlining what it means to be a government for the long-term.

    My colleague David Willetts in his book, The Pinch, focuses on the theme of intergenerational justice. In the book David explains that the Tribal Council of the Iroquis, a North American tribe, believed that all tribal decisions should be considered in light of their impact on the next seven generations. The contrast with modern politics – in which, famously, seven days is seen as a long time – could not be greater.

    I am not going to promise the introduction of a 7-generation rule into the British legislative process. But I am going to argue that the Coalition government’s approach to politics, and to policy-making, is moving beyond the short-termism that has disfigured politics in recent years.

    Governing for the long-term means thinking not only about the next year or two, or even the next parliamentary term. Governing for the long-term means recognising that the decisions of one generation profoundly influence the lives and life chances of the next.

    In economic policy, this means taking the difficult decisions to tackle the deficit and provide the conditions to create the jobs and opportunities of the future. There is no doubt that many of these decisions are painful. But let me tell you, there is nothing fair about saddling the next generation with our debts.

    That is why we have set out a five-year trajectory for the public finances, and established an independent Office for Budget Responsibility. These are evidence of our determination to put economic policy – as well as the economy – onto a more sustainable footing.

    Decisive action to address the deficit is what we have to do in order to do what we want to do. And what we want is to build a fairer nation. This means, in particular, creating a more socially mobile Britain. And this, by definition, is a long-term goal.

    I am acutely aware that it is very much easier to declare political support for social mobility than it is to improve it. If social mobility were improved every time a politician made a speech about it, we’d be living in a nirvana of opportunity.

    This is a complex and contested area of both research and policy. And action to improve social mobility will take many years to take effect. In policy terms, it is like turning the wheel on an oil tanker.

    Promoting social mobility is a long-term business. And it is precisely for that reason that it is vital to establish now, at the beginning of our time in office, that promoting social mobility is at the top of our social agenda.

    Given this commitment, it is very important to be clear about what we mean by social mobility, and why it matters so much.

    As a term, social mobility has a more than slightly wonkish feel. It sounds – with apologies to my kind hosts – very much like a think-tank phrase.

    And yet I think social mobility is the mark of a good society, the badge of fairness. My particular focus is on inter-generational social mobility – the extent to which a person’s income or social class is influenced by the income or social class of their parents. Social mobility is a measure of the degree to which the patterns of advantage and disadvantage in one generation are passed on to the next. How far, if you like, the sins of the father are visited on the son.

    There is of course plenty of argument within the social science community about precise measures, international comparisons and preferred metrics. But I think intergenerational social mobility speaks to most people’s definition of fairness.

    Fairness means everyone having the chance to do well, irrespective of their beginnings. Fairness means that no one is held back by the circumstances of their birth. Fairness demands that what counts is not the school you went to or the jobs your parents did, but your ability and your ambition.

    In other words, fairness means social mobility.

    And social mobility matters for both ethical and economic reasons. For me, an important strand of liberal ethics is that opportunities are detached from origins. As a liberal, I am optimistic about the capacity of people to shape good lives for themselves and deeply committed to tearing down the barriers – whether they are barriers of class, attitude, wealth or bureaucracy – that stand in their way.

    Liberal optimism is founded on a conviction that children have unimaginable – unpredictable – potential. A socially mobile society is one that is waiting for them, open to their talents, ready for their determination.

    As things stand, the evidence on social mobility is not encouraging, either historically or internationally. There is some evidence of a worsening in rates of social mobility between income groups for people born in 1958 compared to 1970. Other studies show that, at best, social mobility rates have flat-lined over the last two or three decades. Data collected by the OECD shows that, of 12 developed countries, the UK is the one where the earnings of individuals are most strongly related to the earnings of their parents.

    Every minute, another baby is born in this country. The question is: what future lies ahead of them. What will their lives be like? We should not already know the answer to this question. But, tragically, we can already predict the likely fortunes of too many of these children, because of the clear influence of social background.

    For too many, birth and destiny are closely intertwined.

    This is not to say that everybody’s life is determined from day one. But it is clear that the odds are stacked against some of those newborns, and in favour of others. And when that is the case, we are not just talking about inequality, but about what amounts to social segregation.

    Social segregation occurs when inequalities become frozen across time, when people are trapped in the position of their birth.

    As well as this clear ethical demand for social mobility, there is also an economic argument for action. If a talented person is unable to rise because of the barriers to opportunity, it is not only their life which is damaged, but the prosperity of the nation.

    The Sutton Trust, for example, estimates that if we could narrow educational inequalities to the levels of countries with a better record on social mobility we could add significantly to the size and dynamism of the UK economy.

    The relationship between social mobility and a high-skill economy cuts both ways. One of the main engines of upwards social mobility is the creation of more professional and highly-skilled jobs, creating what social scientists call ‘more room at the top’. And this, in turn, increases the opportunities for people to move up.

    It is also important to be clear about our objectives in social policy, and the difference between, for example, poverty reduction and the promotion of mobility. The goal of improving social mobility overlaps with other objectives for social policy, such as reducing poverty or narrowing income inequality. But it is not the same.

    Labour, despite 13 years of government, billions of pounds of investment and a plethora of initiatives, schemes and credits, appears to have failed to move the needle on social mobility.

    I think this was for two principal reasons:

    First, they were confused about what they were trying to achieve. Sometimes social exclusion seemed to be the focus, sometimes poverty, occasionally income inequality. Social mobility only gained prominence towards the very end of Labour’s period in office – and by this time it was too late.

    They were confused about their ultimate aims in social policy, which meant a diffusion of effort. It was stop-gap policy-making in an area where absolute consistency and a relentless focus on the main goal is required if the long term changes are to be delivered over time.

    Second, there was too much reliance on standardised, centralised, universal solutions rather than putting power and resources in the hands of those who need them most. Draw a line here, set a target there, tick boxes everywhere. All with good intent, but too often, with precious little long-term effect.

    We saw this in the approach to targets for exam results, where, all too often, disproportionate emphasis was placed on  getting borderline cases over the Whitehall-determined 5-GSCE line, rather than on releasing the potential of all young people.

    But it was visible in Labour’s approach to poverty, too. Poverty in the sense of current income levels can be tackled through the transfer of cash. And of course reducing poverty, at any particular point in time is hugely important in building a fairer nation.

    This Government has made clear its commitment to tackling poverty. And I am delighted that Frank Field is working with the Government on the way that deprivation links to life chances.

    But we also recognise that poverty reduction is not enough in and of itself.

    Under Labour huge sums of money were spent pushing low-income households just above the statistically defined level of household income – sometimes by just a few pounds a week – but with no discernible impact on the real life chances of the next generation.

    Tackling poverty of opportunity requires a more rounded approach. Welfare reform, for example, should be based on the need to improve people’s lives, not just raise their incomes. And I know this is what is animating the work of Iain Duncan Smith at the Department for Work and Pensions.

    So the result of the last thirteen years has been lots of government activity, but too little social mobility. An important CentreForum report on this issue in 2006 concluded: ‘the rate of intergenerational social mobility has stabilised at levels in the UK that are unacceptable’. I agree.

    Of course, no single political party should attempt to claim the moral high ground on this issue. This is not an area where any party or political philosophy can claim a monopoly of wisdom. But I do want to argue today that this government will take a distinctly different approach.

    That means, above all, understanding the nature of the problem we face. Our national failure on social mobility, in spite of years of economic growth and investment in public services, has to be properly understood in order to be reversed.

    I am not today going to offer you any definitive answers to the complex questions that have exorcised social scientists for decades. You would be rightly sceptical if I did. But I will identify what this Government believes to be five key sources of social segregation.

    First, the diverging paths of different children in the early years. We now know a good deal about the widely varying rates of development for children, long before they hang up their coat for their first day at school. This is again an area where CentreForum has produced excellent analysis.

    Early years investment also illustrates the distinction I made earlier between anti-poverty and pro-mobility measures. High quality pre-school education will not alter the statistics on income distribution or household poverty levels. But it will change the lives of the children who benefit.

    Second, the different degree to which different parents invest in and engage with their own children’s development and progress. Parents are in the frontline when it comes to creating a fairer society, in the way that they raise their children.

    According to one study, the amount of interest shown by a parent in their child’s education is four times more important than socio-economic background in explaining education outcomes at age 16.

    This is not an area where the state can simply pull a lever or two and put things right. These are also potentially perilous waters for politicians. But at the same time we must not remain silent on what is an enormously important issue. Parents hold the fortunes of the children they bring into this world in their hands. All parents have a responsibility to nurture the potential in their children.

    I know, like any mother or father, how difficult it can be to find the time and the energy to help, for example, with your children’s homework at the end of a busy day.

    But the evidence is unambiguous: if we give them that kind of attention and support when they are young, they will feel the benefits for the rest of their lives.

    Third, the impact of parental background on educational attainment in the school years. Formal educational outcomes remain profoundly shaped by the socio-economic backgrounds of young people.

    A young person from a household in the top fifth of the of the income distribution is three times more likely to get 5 GCSE’s between grades A and C than a young person brought up in a household in the bottom fifth. Our education policy is squarely aimed at reducing these inequalities.

    Fourth, the roles of Higher and Further Education.

    The expansion of Higher Education has brought many benefits to the nation, and to those individuals who have become graduates.

    But there is evidence, from Jo Blanden and others at the Centre for Economic Performance to suggest that – contrary to expectations – increased levels of attendance at university have not translated into higher levels of social mobility.

    This is for two important reasons:

    One: a disproportionate number of university students come from the middle and upper classes.

    Two: higher education remains the primary entry route to high-quality jobs.

    This is why I feel so passionately that we need to attack the educational apartheid that currently exists between vocational and academic learning in general, and between Further Education and Higher Education in particular. It also graphically demonstrates the need to reform the funding of Higher Education in a way that promotes greater social mobility.

    Fifth, the closed nature of so many professions. We know that professions such as medicine, law, journalism – and yes, of course, politics – have become narrower in their social representation.

    David Willetts writes that in the professions, ‘the competition for jobs is like English tennis, a competitive game but largely one the middle classes play against each other’.

    Again, this an area where it is up to the professions themselves to get their houses in order, supported by appropriate government action. I therefore welcome the involvement of the expanded Gateways to the Professions Collaborative Forum, in which a considerable number of professional bodies have come together because they have realised that for too many professions, the dial is going the wrong way.

    In each of these areas, there is a huge amount of work to be done. We are in the process of formulating a comprehensive social mobility strategy for the government.

    But I just want to pick out two particular areas of reform that already make clear our direction of travel.

    First: Tax reform. We are determined to reform the tax system so that it encourages social mobility, rather than entrenches social segregation. That means a tax system that rewards work and makes fairer demands on unearned wealth.

    We took a first step towards that tax system at the Budget by raising the personal threshold for income tax by £1,000. This will remove 880,000 people from income tax altogether. At the same time, Capital Gains Tax has risen by a full ten percentage points to 28 per cent. And we are looking hard at the case for a General Anti-avoidance rule to ensure that large companies and wealthy individuals pay their fair share of tax.

    Now as I said earlier, raising household income is not the same as raising mobility. But the income tax reform is targeted at those who are in paid work, which is the surest route out of poverty. Given the strong relationship between parental employment status and social mobility, the income tax reform should be seen not only as a measure to boost fairness today, but also as an investment in fairness tomorrow – in other words in social mobility.

    Secondly: in education, we are committed to focusing resources on the most disadvantaged, both in the early years and during schooling.

    We have learnt from other nations, like the Netherlands, that by targeting investment at disadvantaged children, especially when they are young, we can improve social mobility.

    So we are introducing a Pupil Premium – explicitly designed to channel greater investment to the children and the schools who need it most.

    The level of the premium will be announced as part of the October spending review. And we are currently consulting on how best to operate the premium, including which deprivation indicator to use. The outcome of that consultation will determine the number of children to benefit from the premium.

    Schools will be able to spend the money as they see fit –  like, for example, on catch up classes and one-to-one tuition, the things we know can make a difference – but under the clear proviso that its purpose is to help pupils overcome the accidents of birth.

    We are also committed to taking Sure Start back to its original purpose of early intervention, increasing its focus on the neediest families.

    These policies will not have an instant impact. We know that they will have to be carefully implemented, and that the results of these investments will take years, perhaps decades, to bear fruit. But as I said right at the beginning, we are a government committed to the long-term.

    The depth of this Government’s commitment to social mobility should, I think, be clear both from what I have said today and from our actions to date. But clearly what matters most is what we do from now on.

    To drive the social mobility agenda across Government, I will be chairing a new ministerial group, devoted to Social Mobility, which will have as its first task the development of a Social Mobility Strategy.

    We are also taking steps to ensure that we are held to account on the progress we make, as well as the progress made by other institutions. For the benefit of anyone who was on their holidays over the weekend, I can formally announce today that I have appointed an independent, expert reviewer. And I am delighted that Alan Milburn – respected across the political spectrum for his tireless work on social mobility – has accepted this role.

    Building on the enormous contribution he made in his report for the last government on fair access to the professions, Alan will now be holding the coalition Government’s feet to the fire.

    Each year for the whole of this parliamentary term, Alan will consider our success in delivering that strategy, as well as identifying other work that needs to be done, and assessing the contribution being made by business, the professions and civil society.

    Beginning in September 2011, Alan’s wholly independent findings will be laid before Parliament and will, I hope, form the basis of an annual debate social mobility debate in the House of Commons.

    Alan is someone for whom the questions of fairness in general, and social mobility in particular, run very deep. I am in no doubt of his personal commitment to this cause, or indeed of his fierce independence in its promotion. I don’t think Alan will mind me saying that he is not somebody you appoint to this kind of role if you are in search of a quiet life!

    To conclude: we are a government taking measures for the long-term. I believe that the governments that are most effective in the long-term know what they are about from the outset. And in social policy, we are about promoting a fairer, more open, more mobile society. That, for us, is the long game.

    So when the history books are written, we want them to say that we successfully paid down Britain’s budget deficit and that we restored stability to the economy. That while we acted decisively to restore the public finances, we also acted in a way that laid the foundations for economic prosperity in the years to come.

    But in five years time we also want to be able to look back and say that the children born in 2015 are less constrained by the circumstances of their birth.

    We want to be able to say that true progress was made in making opportunity a right of the many, rather than a privilege of the few.

  • Nick Clegg – 2010 Speech on the Constitution

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    Below is the text of the speech made by Nick Clegg, the Deputy Prime Minister, on 19th May 2010.

    I have spent my whole political life fighting to open up politics. So let me make one thing very clear: this government is going to be unlike any other.

    This government is going to transform our politics so the state has far less control over you, and you have far more control over the state. This government is going to break up concentrations of power and hand power back to people, because that is how we build a society that is fair. This government is going to persuade you to put your faith in politics once again.

    I’m not talking about a few new rules for MPs; not the odd gesture or gimmick to make you feel a bit more involved. I’m talking about the most significant programme of empowerment by a British government since the great enfranchisement of the 19th Century.

    The biggest shake up of our democracy since 1832, when the Great Reform Act redrew the boundaries of British democracy, for the first time extending the franchise beyond the landed classes.

    Landmark legislation, from politicians who refused to sit back and do nothing while huge swathes of the population remained helpless against vested interests. Who stood up for the freedom of the many, not the privilege of the few. A spirit this government will draw on as we deliver our programme for political reform: a power revolution. A fundamental resettlement of the relationship between state and citizen that puts you in charge.

    So, no, incremental change will not do.

    It is time for a wholesale, big bang approach to political reform. That’s what this government will deliver. It is outrageous that decent, law-abiding people are regularly treated as if they have something to hide. It has to stop.

    So there will be no ID card scheme. No national identity register, no second generation biometric passports. We won’t hold your internet and email records when there is just no reason to do so. CCTV will be properly regulated, as will the DNA database, with restrictions on the storage of innocent people’s DNA.

    And we will end practices that risk making Britain a place where our children grow up so used to their liberty being infringed that they accept it without question. There will be no ContactPoint children’s database. Schools will not take children’s fingerprints without even asking their parent’s consent.

    This will be a government that is proud when British citizens stand up against illegitimate advances of the state. That values debate, that is unafraid of dissent.

    That’s why we’ll remove limits on the rights to peaceful protest. It’s why we’ll review libel laws so that we can better protect freedom of speech.

    And as we tear through the statute book, we’ll do something no government ever has: We will ask you which laws you think should go.

    Because thousands of criminal offences were created under the previous government… Taking people’s freedom away didn’t make our streets safe. Obsessive lawmaking simply makes criminals out of ordinary people.

    So, we’ll get rid of the unnecessary laws, and once they’re gone, they won’t come back.

    We will introduce a mechanism to block pointless new criminal offences.

  • David Cameron – 2010 Speech on Tourism

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    Below is the text of the speech made by David Cameron, the Prime Minister, in London on 12th August 2010.

    This is not a speech I had to make.  It’s a speech I wanted to make. I wanted to do it here, at the heart of the most internationally visited city in the world and I’m delighted that you’re all able to come.

    I want to talk about just how incredibly important I think our tourism industry is and what we need to do now to make the most of it not just here in London but right across our country.

    For too long tourism has been looked down on as a second class service sector.  That’s just wrong. Tourism is a fiercely competitive market, requiring skills, talent, enterprise and a government that backs Britain. It’s fundamental to the rebuilding and rebalancing of our economy.

    It’s one of the best and fastest ways of generating the jobs we need so badly in this country. And it’s absolutely crucial to us making the most of the Olympics and indeed a whole decade of great international sport across Britain.  Let me explain.

    Economy

    First, our economy. Britain has to earn its way in the world. And that’s never been more true than right now as we fight to get to grips with the biggest deficit in the G20 and rebuild and rebalance our economy for a more sustainable future.

    That’s why I’ve been visiting some of our great potential export markets in Turkey and India and why I’m also going to China later in the year.

    We urgently need to advance our trade with the great emerging economies and to increase our exports all over the world.

    I’ve already made a speech about the importance of rebalancing our economy and the vital role of supporting our growing industries, including aerospace, pharmaceuticals, high-value manufacturing, hi-tech engineering and low carbon technology.

    But tell me this: which industry is our third highest export earner behind chemicals and financial services? Manufacturing? IT? Education? No, it’s tourism.   And it’s not just a great export earner. There’s also a huge domestic market too.

    UK domestic tourists made 126 million overnight trips last year – spending £22 billion in the process. In total, tourism contributes £115 billion to our economy every year.  It employs nearly ten per cent of our national workforce.

    And while London remains the country’s most prosperous tourist hub tourism is also a great employer in the regions.

    Already tourism accounts for a quarter of all jobs in West Somerset. And for more than a tenth of all jobs in my own area of West Oxfordshire.  Look at how Liverpool benefited from being the European Cultural Capital in 2008.

    Jobs in the city’s hotels and bars rose by over a quarter jobs in the creative industries increased by half and one million hotel beds were sold in the city. They say in business when you want to do better you can often do more with your biggest customers. The same is true of our industries. We can look to the best to do even more.

    Tourism presents a huge economic opportunity.  Not just bringing business to Britain but right across Britain driving new growth in the regions and helping to deliver the rebalancing of our national economy that is so desperately needed.

    Pride in our country

    But tourism is about more than economics. We should be proud of our potential because we are proud of our country and what it has to offer.  I love going on holiday in Britain.

    I’ve holidayed in Snowdonia, South Devon and North Cornwall, the Lake District, Norfolk, the Inner Hebrides, the Highlands of Scotland, the canals of Staffordshire to name just a few.

    I love our varied seaside towns, from Oban to Llandudno, from Torquay to Deal. I love our historic monuments, our castles, country houses, churches, theatres and festivals.  Our beautiful beaches like the “East Asian” beach that Pierce Brosnan surfs on in Die Another Day which was actually Newquay.

    Or the “Mediterranean” coastline that Gwyneth Paltrow was washed up on at the end of Shakespeare in Love which was actually Holkham beach in Norfolk where I went swimming one April.  I love our national parks, our hundreds of historic gardens and national network of waterways.  And our museums – including three of the five most visited art museums in the world right here in London – the British Museum, the National Gallery and the Tate Modern.

    And of course here at the Serpentine Gallery where last year’s Pavilion by SANAA became the third most visited exhibition for architecture and design in the world and SANAA has just won this year’s prestigious Pritzker prize.

    People sometimes characterise culture as a choice between old and new; between classical or pop, great heritage or modern art. But in Britain it’s not one or the other, it’s both.  It’s Glyndebourne and Glastonbury.  The Bristol Old Vic and the Edinburgh Fringe. The Bodleian Library and the Hay literary festival. Ascot and the Millennium Stadium; Nelson’s column and the Olympic Park’s Orbit.

    We have so much to be proud of so much to share with each other and so much to show off to the rest of the world.

    An unprecedented opportunity

    And we have in the coming decade an unprecedented opportunity to take our tourism industry to a whole new level with so many big international sporting moments that will put us at the centre of the world stage year after year. Of course the Olympics – which will see the Triathlon right here in Hyde Park (and of course the Beach Volleyball on Horseguards’ Parade which I’ll be able to see from my bedroom window.)

    But also the Champions’ League final at Wembley next year.  The Rugby League World Cup in 2013.  The Commonwealth Games in 2014.  The Rugby Union World Cup in 2015.  And we’re fighting hard to get the football World Cup in 2018. And that’s just to name a few.  Not to mention the Ryder Cup or the annual Six Nations.

    This really will be the greatest sporting decade in British history.  And of course there will be great non-sporting moments too like the Queen’s Diamond Jubilee.  We have to ensure that when the cameras leave after all these great events the people don’t leave with them.  And that the benefits are spread across the country and not just felt here in London or in our other major cities.

    We can do even better – the missed opportunity

    We must not let these opportunities slip through our grasp.

    But quite frankly, right now, we’re just not doing enough to make the most of our tourism.  The last government underplayed our tourist industry.  There were eight different Ministers with responsibility for tourism in just thirteen years.  They just didn’t get our heritage.  They raided the national lottery taking money from heritage because it didn’t go with their image of “cool Britannia.”

    At one point they even referred to Britain as a young country. More than a seventh of England is designated as an area of outstanding natural beauty. And yet the UK is only ranked 24th in the world on natural beauty. We’re behind Japan; Finland and Ireland. Ireland are 12th.

    Of course Ireland is beautiful but why is the UK twelve places behind?

    It’s a question of perception. And the truth is we’ve just not been working hard enough to celebrate our country and home and sell our country abroad.

    Huge opportunities are being missed. The UK has fallen from sixth to eleventh place in the World Economic Forum’s Travel and Tourism Competitiveness Ratings between 2008 and 2009.

    I want to see us in the top five destinations in the world. But that means being much more competitive internationally.  Take Chinese tourists, for example.

    We’re their 22nd most popular destination. But Germany is forecast to break into their top ten. Why can’t we?

    Currently we only have 0.5 per cent of the market share of Chinese tourists.  If we could increase that to just 2.5 per cent this could add over half a billion pounds of spending to our economy and some sources suggest this could mean as many as 10,000 new jobs.  Currently we have 3.5 per cent of the world market for international tourism.

    For every half a per cent increase in our share of the world market we can add £2.7 billion pounds to our economy, and more than 50,000 jobs.  At a point when our economy is coming back from the brink – we just can’t let this sort of opportunity pass us by. So what are we going to do about it? I’ll tell you.

    The strongest possible tourism strategy

    I want us to have the strongest possible tourism strategy. I think there are four parts. First – what government does nationally.  Second – the role of local government and the support of the local area. Third – how we stimulate the private sector in tourism.  And fourth – how we make policy in other areas that will impact the tourism industry.

    I want to have the strongest possible engagement with the tourism industry in each of these areas.  And to start this debate today I want to say a few words about each.

    What Government does nationally

    First, what government does nationally.  We’re going to bring a whole new approach – and a new attitude – to tourism. Because we think tourism is one of the missing pieces in the UK’s economic strategy. Our commitment to tourism is not new-found.

    In Opposition Jeremy Hunt championed its importance.  We’ve now appointed John Penrose, as our Minister for Tourism and Heritage. He represents a seaside town, has a background in business and developed our policies on deregulation as a shadow minister.  So I know he will bring great ability to his role and I want him to lead a new relationship with the tourism industry.

    We’re going to be a government that understands the huge potential of our tourism industry that gets tourism and that gives the industry the backing it needs. A successful tourism policy needs an active and engaged government. But taking Britain up the league table of tourist destinations isn’t something that we in government will do alone. It’s something that we will all do together.

    Industry in the lead but with government – and society as a whole – standing behind you every step of the way.

    Local Government and the support of the local area

    Second, local government and the support of the local area. Tourism is a local industry. You can’t support local industry with national diktats from Whitehall.

    The old model was just too top-down failing to incentivise innovation and local enterprise and failing to reward local authorities which seized the chance to support the expansion of their local economy. It completely disempowered the local area. We’re going to do things differently.

    The old Regional Development Agencies put bureaucratic boundaries over natural geography. Take the Cotswolds artificially spread across different Regional Development Agencies including he South East, the South West.

    Now if areas like this want to work together across those old, centrally-imposed boundaries they can.  That is why we have invited local businesses and local authorities to come to us and tell us what works for them.

    And of course to tell us what doesn’t work like the current business rates system which fails to support the development of tourism.

    If a local council does more to attract tourists to its area they know they’ll be picking up costs but they’ll get none of the additional business rate revenue. Central government sucks in 100 per cent of this revenue generated by all local economic growth. This is just mad.

    Local authorities must be allowed to invest some of this back into their own communities. This wouldn’t just help tourism – it would help all sectors of local industry across our country. And it’s a vital part of how we can begin to rebalance our economy.

    Stimulating the private sector

    Getting the local incentives right will also be crucial for the third part of our strategy – and that’s stimulating the private sector. When we talk of the tourist industry it’s mostly in the private sector. You’re great entrepreneurs.

    But you need a government that creates the right conditions for entrepreneurship. Like small businesses in so many other sectors, our tourism industry has been strangled by the endless rise of red tape.

    So we’re going to free our 200 thousand tourism businesses from the red tape and excessive business taxes.

    For the next three years we’re waving some employment taxes on the first 10 jobs created by new businesses outside London, the South East and the Eastern Region.

    We’re cutting the main rate of corporation tax to 24p and the small companies rate to 20p. We’re reducing the time it takes to set up a business.  And we’re stopping the removal of the tax breaks on furnished holiday lettings. And our new Regional Growth Fund creates an opportunity for the tourism sector to bid for support for its most creative ideas with £1 billion available to kick start projects that will drive private sector growth.

    Other key policy areas that affect tourism

    Fourth, we’re going to take a good look across government at all those policies that don’t fit neatly into the tourism or DCMS departmental box but which nonetheless impact on tourism in a big way. Visas. Infrastructure. From the speed of our broadband to the speed of our railways to the time it takes to clear customs at Heathrow.

    I can tell you already some of the things we’re going to change. We’re going to remove some of the obstacles that put people off coming here. For example, by working more closely with our international partners to improve the local delivery of visa services in key markets like China and India.

    This includes increasing the availability of online applications from just over a third to three-quarters by the end of the year – with 100 per cent coverage by 2014.  And we’re also supporting the ambition to develop a new network of high speed rail across the country. Because when a train to Brussels is as quick as a train to Bournemouth and it’s quicker to get from London to Paris than it is to get to Blackpool what chance do our great seaside towns have of drawing people from London?

    But perhaps more important than these specific changes is the broader change of direction. I want us to look at all these things not as isolated issues but from the perspective of our tourism industry – both domestic and international.

    John Penrose is already looking at some of these issues as part of his report on increasing domestic tourism. At the moment 36 per cent of what Brits spend on holidays is spent at home. Can we up our game to raise that to 50 per cent?

    John Penrose is doing a report for me, which he will present in October, to tell me whether that is a realistic objective or not but I want us to aim high not low. In fact, I want John to go further.

    I want John to work with you day in and day out to develop a tourism strategy by the end of this year that brings together the best of the ideas you have that ensures London 2012 provides the best economic and tourism legacy that any Olympic host city has ever done and that sets us on a path to break into the top five tourist destinations in the world.

    Conclusion

    So that’s our goal and those are some of the ways that we’re going to raise our game to try and reach it. Today’s speech is an appeal to you tell us the tools you need to finish the job. Because as with so much of this agenda, making the most of our tourism industry is not simply about government action. It’s about what our communities and local businesses do. Reaping the gains of local tourism is one of the great economic tests of the Big Society. Can we come together to make our country more prosperous?

    Can we support new developments and new enterprise to boost our tourism and make the most of our great heritage and national assets?

    Can we seize the opportunity of this great decade of sport – and especially the Olympics – to deliver a lasting tourism legacy for the whole country and not just here in London? I really believe we can.

    I believe we can come together in a new nationwide effort to make this coming decade the best ever for tourism in Britain. This government will stand fully behind every effort. The challenge is now for you as an industry and for us together as a society. And I’m confident that – together – we will meet it.

  • David Cameron – 2010 Speech on HMS Ark Royal

    davidcameron

    Below is the text of the speech made by David Cameron, the Prime Minister, on HMS Ark Royal on 24th June 2010.

    Thank you very much indeed, and can I say what a huge honour it is for me to be aboard HMS Ark Royal, and to see you all today. I know that I am only the warm-up act, because I was speaking last night to Her Majesty – how much I love being able to say that – and she told me how delighted and excited she was about coming to see again her beloved Ark Royal as she will be next week.

    I wanted to come here today for one reason, and one reason alone. I know that all of you probably think that back in the United Kingdom, all we are thinking about is eleven people who are going to take to that football pitch on Sunday. Of course, everyone is willing them on, but I can tell you that everyone in our country is thinking of something else as well, and that is the enormous debt that we owe to our armed services for everything that you do for us. Saturday is Armed Services Day, and I wanted to be here with you before that, to say to you as directly as I can how much we owe our armed services – our Air Force, our Royal Navy, our Army – for everything that you do to keep us safe.

    The first thing I wanted to say is a very, very big thank you. You work incredibly long hours. You are taken away from your loved ones. You spend a long time away from home and at sea. You do a job that many of us simply couldn’t do, and it’s right that we should say a very big thank you for what you do. Samuel Johnson once said that every man looks at himself more meanly if he has never been a soldier or never been to sea, and that is right, so thank you for your courage, your dedication, your professionalism, and for what you do.

    The second thing I wanted to say is that I think we should take huge pride in our Royal Navy.  Standing here on the fifth Ark Royal, and thinking of all our incredible naval history, from Nelson back to Drake, from Trafalgar to Jutland – history that I hope we can now teach properly in our schools – we should be proud of all we have achieved in the past, but we should also be very proud of all that we are going to do in the future.  We have a great naval future as well as a great naval past. I know that sometimes, with everything that has been happening in Afghanistan, that the Royal Navy can sometimes feel a little forgotten.  I will never forget what you do, and no one should ever forget that in Afghanistan, an important part of the Royal Navy, the Marine Commandos, are fighting incredibly hard in Afghanistan on our behalf.  We have heard more bad news overnight about casualties in Afghanistan, and our hearts should go out to every one of those men and their families and the loved ones that they leave behind.

    As well as talking about the debt of gratitude that we owe, as well as speaking about our proud naval tradition, I also wanted to say something about the Strategic Defence Review that we are undertaking, that I know of course causes huge concern and worry right across our armed services.  It is right that we have one.  We have not asked the fundamental questions about the defence of our country, about our role in the world, since 1998.  If you think of all the things that have happened since then – the actions that you have taken part in, in Sierra Leone, and Kosovo; the wars that we fought in Iraq and Afghanistan – huge changes have taken place in our world: the attacks of 9/11; the attacks in our own country in July 2005.  It is time for us to think again about how to make our country safe, how to project power in the world, how to look after our national interest, and how to make sure we are secure for the future.  That is what we should do.

    I know absolutely that the Royal Navy will have a huge role to play in that future.  We are a trading nation.  We have got to keep our sea-lanes open.  We want to stop drugs coming from our shores, and that is the work that you do.  We have to deal with the appalling threat of piracy off the Horn of Africa; that is what you do.  We have to make sure we keep vital sea-lanes open, and the work in the Gulf; that is what the Royal Navy is doing today.  I know that whatever the outcome of this review, whatever the changes we will have to make, we should make them together and recognise that the Royal Navy is going to have a huge role to play in our future, in our defence, and in our security.

    The last thing I wanted to say to you today is simply this: I am very aware that as the British Prime Minister, I can expect incredible things from you.  Dedication, bravery, courage, service.  I want to say what you can expect from me.  There is this thing called the Military Covenant, written down, which is what the country offers you in return for what you offer us.  You do so much: you put your lives on the line, your safety on the line, and it is time for us to rewrite that Military Covenant, to make sure that we are doing everything we can for you and your families at home, whether it is the schools you send you children to, whether it is the healthcare that you can expect, whether it is the fact that there should be a dedicated military ward for anyone who gets injured or wounded in Afghanistan or elsewhere.  I want all of these things refreshed and renewed and written down in a new Military Covenant that we write into the law of our land so we show how we stand up for our armed services.

    As far as I am concerned, public service is a vital part of our country, and you are at the noblest end of public service.  A great military commander once said that those things we do for ourselves, die with us; those things we do in the service of others, they live forever.  That is what you do in the Royal Navy; that is what you do in our armed services.  I am here as the new British Prime Minister to say a very big thank you for your service, your dedication, your courage and all that you do on this historic ship, in this great place, at this time, with Her Majesty the Queen coming to see you next week.

    Thank you for all you do, thank you for all you are, thank you for all you represent, and recognise that back home in Britain, it is not just the government that reveres our armed services; it is the whole of our country, from the homecoming parades, to the businesses that allow Territorial Army reservists and other reservists to go off to sea or to fight overseas, to the great public support you see for our armed services.  We are proud of you, so thank you, and remember you are never forgotten.  Thank you very much.

  • David Cameron – 2010 Civil Service Live Speech

    davidcameron

    Below is the text of the speech made by David Cameron about the Structural Reform Plans, made at the Civil Service Live event on 8th July 2010.

    This is my first time here – so let me make something very clear from the start.

    I have huge respect and admiration for the civil service.

    In my twenties I worked in the Home Office and the Treasury.

    I saw then just how talented and committed our civil servants are.

    And I’ve seen it again right from the first day of this government.

    Yes, I like to think we’ve given some political leadership – but it’s you and your colleagues in the civil service who have delivered.

    Just think of what we’ve done – together – in two months:

    The full programme for government.

    The National Security Council.

    The Office of Budget Responsibility.

    The in-year spending review.

    The emergency Budget.

    The immigration cap.

    The abolition of ID cards.

    And we’ve taken the first steps on the long-overdue reform of our schools, our prisons, our welfare system – and of course, our political system too.

    These things can’t be done by a handful of politicians.

    They get done because officials get stuck in.

    Whatever your political views, however hard you might have worked on a previous project…

    …you always uphold the values of the civil service – integrity, honesty, objectivity, impartiality – and that’s what makes our civil service the envy of the world.

    So thank you.

    Deficit

    Of course, this is just the beginning.

    We’ve got some massive challenges ahead – and nothing looms larger than the budget deficit.

    Fail to deal with this – and we risk a major crisis in our economy.

    That’s why we’ve got to make these cuts.

    But let’s also be clear how we will make them.

    We’ve got to do this in a way that is responsible and fair – that demonstrates we’re all in this together.

    That’s why we’re asking for your help.

    We’ve thrown open the challenge of identifying savings to you – to the whole of the public sector…

    …and the response has been fantastic – more than 50,000 ideas in just two weeks.

    And tomorrow, the Chancellor and I will be setting out some of the best we’ve received.

    Reform But people are making a big mistake if they think this Government is just about sorting out the deficit.

    That’s not why I came into politics.

    It’s not what the coalition came together for.

    We came together to change our country for the better in every way.

    The best schools open to the poorest children.

    A first-class NHS there for everyone.

    Streets that are safe, families that are stable, communities that are strong.

    These ambitions haven’t died because the money is tight.

    The real question is: how can we achieve these aims when there is so little money?

    How can this circle be squared?

    The answer is reform – radical reform.

    We need to completely change the way this country is run – and that’s what I want to talk about today.

    Bureaucratic accountability

    Now I know you’ve heard talk of reform many times before.

    I’m not going to criticise everything the previous government did.

    Many of their intentions were right.

    Where they went wrong with reform was the techniques they used.

    Top-down. Centralising. Above all, bureaucratic.

    To improve public services, to get value for money, to deliver their stated aims, they set up a system of bureaucratic accountability.

    In this system of bureaucratic accountability almost everything is measured or judged against a set of targets and performance indicators, monitored and inspected centrally.

    The evidence shows this hasn’t worked.

    All the new learning strategies in schools – but the gap in educational achievement between the richest and poorest widened.

    All those NHS targets – but cancer survival rates in Britain are among the lowest in Europe.

    And worse than these failures is that the very act of imposing this top-down system has undermined the morale and judgment of so many public sector workers…

    …the very thing that good public services depend on.

    Democratic accountability

    That was the past.

    Now we have a new government.

    A new coalition government, with a new approach.

    We intend to do things differently, very differently.

    If I could describe in one line the change we plan for the way we approach public services, and reform generally, it’s this:

    We want to replace the old system of bureaucratic accountability with a new system of democratic accountability – accountability to the people, not the government machine.

    We want to turn government on its head, taking power away from Whitehall and putting it into the hands of people and communities.

    We want to give people the power to improve our country and public services, through transparency, local democratic control, competition and choice.

    To give you just one example: instead of teachers thinking they have to impress the Department of Education, they have to impress local parents as they have a real choice over where to send their child.

    It really is a total change in the way our country is run.

    From closed systems to open markets.

    From bureaucracy to democracy.

    From big government to Big Society.

    From politician power to people power.

    And let me tell you why, now, this vision is possible.

    It’s not just that the two parties that make up this coalition believe, instinctively, in giving more power to people.

    It’s that’s where power has shifted to.

    Let me explain.

    A couple of centuries ago this country was in a pre-bureaucratic age – transport and communication were so slow that information and power had to be held locally.

    Then with the invention of the steam engine and the telegraph we moved into the bureaucratic age…

    …when it was possible and practical to file the nation’s paperwork in one corner of the country – in Whitehall – and that’s where all the power has been too.

    But today, with the revolution we’ve had in communications and technology, we can move into the post-bureaucratic age…

    …where information and power are held not locally or centrally but personally, by people in their homes.

    And the consequences for government – and the way our whole country is run – are incredibly exciting.

    It means we can abandon the old bureaucratic levers that we know have failed…

    …and instead improve public services and get value for money with new approaches that put power in people’s hands.

    That what I want to focus on now.

    I want to explain these approaches so you understand clearly what this government expects of you…

    …and so there can be no doubt about our attitude to reform – and to solving problems.

    Choice

    One way we can bring in real accountability is through choice.

    Wherever possible, we want to give people the freedom to choose where they get treated and where they send their child to school – and back that choice up with state money.

    Because when people can vote with their feet…

    …it’s going to force other providers to raise their game – and that’s good for everyone.

    Competition

    Another tool we must use is competition.

    By bringing in a whole new generation of providers – whether they’re from the private sector, or community organisations, or social enterprises – we can bring in the dynamic of competition to make our public services better.

    That’s what we plan in education.

    We will let any suitably qualified organization to set up a school…

    …creating real diversity and real competition so there’s real pressure to raise standards.

    Payment by results

    Of course there are some areas where competition and choice aren’t possible.

    We understand that.

    So we’ll do the next best thing – and introduce the principle of paying providers by the results they achieve.

    Rewarding people for work well done is a simple way of driving up standards.

    There are some people who say we can’t do this – that it’s against the spirit of public services.

    I say: we can’t afford not to do this.

    You wouldn’t have a plumber round to your house and pay them for ruining your drains.

    Why should public services be any different?

    So we’ll pay welfare-to-work providers not just by how many they get into work but how many stay in work.

    And we’re going to pay independent providers – and eventually prisons – by the levels of re-offending.

    Elections

    Sometimes it won’t be possible to have choice, or competition, or to pay by results.

    But that doesn’t mean we have to give up on bringing in people power.

    Here, we should have direct democracy.

    That’s what we’re doing with policing.

    Instead of having chief constables answer to Whitehall, we will make them answer to police commissioners with a mandate to set local policing priorities.

    That mandate will have been earned through election – and those priorities will have been developed with the consent of local people.

    So police will stop looking to Whitehall for direction and start looking to people.

    Transparency

    And whatever the circumstance, there is one tool that we will always try to use – and that is transparency.

    We’re shining a light on everything government does…

    …not just the pay, the perks and where public money is spent…

    …but on how well that money is spent, too – on health outcomes, school results, crime figures.

    That way people can see the value they’re getting for their money and hold us to account for it.

    I know there are some people who think this is unfair.

    I’m sorry, I just don’t agree.

    We are the servants of the people of this country.

    They are the boss.

    Where is it said that the boss is told they can’t look at the books or know the pay of their staff?

    It doesn’t happen in the private sector and from now on it won’t happen in the public sector.

    More for less

    All these different approaches are designed to put people in charge and give us services that are more local, more responsive and more effective.

    And there’s another big, important by-product of these reforms.

    They’re going to help us save money.

    Not just because we can scrap the whole expensive apparatus of top-down bureaucracy and inspection.

    But because when people have the power to hold public services to account, they’ll help make sure they’re less wasteful and more effective.

    When social enterprises and charities have the power to compete in the public sector, that will increase competition, drive costs down and put pressure on existing providers to raise their game.

    And when these providers are paid by the results they achieve, we can get value for money.

    Arguments against reform

    But I know there are people who questions our plans for reform.

    They say it will be the poorest who lose out when you increase choice.

    They say it will create wider gaps between communities, with some getting left behind.

    They say when you increase competition some organisations will fail – and that will disadvantage the people who use them.

    I’m going to be taking on all these arguments in the weeks ahead.

    But on the fairness point – because it’s so important – let me say this briefly today.

    The old top-down system failed the poorest.

    It widened inequality.

    In a system where people have no choice, it’s the richest who can opt out while the poorest have to take what they’re given.

    And just consider the evidence of the most recent years, in those areas where principles of competition, choice and greater independence for institutions have been introduced.

    Academies are transforming education results in our poorest communities.

    Some foundation hospitals are bringing the very best care to the people who need it most.

    More independence, more freedom, more openness – and standards are raised across the board – improving life for the most vulnerable and disadvantaged as well as for the better off

    That’s why we are so determined to press on, go further and go faster in bringing about a real people power revolution.

    Structural Reform plans

    So what part will all you have to play in making this change happen?

    Going from bureaucratic accountability to democratic accountability will require radical reform.

    I need your help to make these reforms happen.

    But let me be very clear: I do not want you and your colleagues to think your role is to guarantee the outcomes we want to see in our public services – or to directly intervene in organisations to try and improve their performance.

    It’s our job – we as politicians, you as civil servants – to create the conditions in which performance will improve, by making sure professionals answer to the public.

    And today, we’re announcing how we want to keep those reforms on track.

    Starting with schools and local government, we will be publishing Structural Reform Plans for every Whitehall Department.

    They will be part of the full departmental business plans published after the Spending Review.

    And I want to be very clear about how they are different from the old top-down system you are used to.

    They’re different because in these plans you will not find targets – but specific deadlines for specific action.

    Not what we hope to achieve – but the actions we will take.

    They will show how each department plans to bring democratic accountability – how they will create the structures that put people in charge, not politicians.

    I want you to read these reform plans and work with them.

    They mean a real culture shift for you, a sea change in what you do.

    Where there has been caution about devolving power there’s got to be trust.

    Where there has been an aversion to risk, there needs to be boldness.

    I’m telling you today that your job under this government is not to frustrate local people and local ideas, it is to enable them.

    Conclusion

    Everything I have spoken about today – the ideas that lead the reform, the plans that shape it, the deadlines that will drive it – these things do not guarantee success.

    A lot of the ideas, the impetus needs to come from you.

    I hope I’ve left you with a very clear idea of what we want to achieve.

    You need to know, instinctively, what will get a green light or a red light from me.

    If you want to make our public services more transparent, open them up to make them more diverse, to give people more power and control – you can be confident it will get the green light.

    But if you want to set targets, set new controls, impose new rules, don’t bother because you’re likely to get the red light.

    This government believes you get value for money by opening services to choice and competition…

    …by trusting professionals and restoring their discretion…

    …by publishing in full all the information.

    This government believes in accountability: but it has to be democratic accountability, not bureaucratic accountability.

    Be in no doubt about our determination to do this.

    Yes, we’ll deal with the deficit – but we’ll also completely change the way our country is run.

    So let’s push power out, let’s reform our public services, and let’s change our country for the better.

    Let’s bring on the people power revolution.

  • David Cameron – 2010 Speech on the Economy

    davidcameron

    Below is the text of the speech made by David Cameron, the Prime Minister, on the economy. The speech was held in Milton Keynes on 7th June 2010.

    Today my speech is about the deficit and the debt and the financial problems that we face. But at the same time as that we must never take our eyes off the need for building strong and sustained economic growth in Britain, growth in which our universities – and perhaps the Open University in particular – should play a huge part.

    The knowledge-based economy is the economy of the future, and in building that economy and in recognising that it is not just about young people’s skills but about people’s skills all through their lives, the Open University has a huge, huge role to play. It is a great British innovation and invention and it is a privilege to be here this morning.

    I have been in office for a month and I have spent much of that time discussing with the Chancellor and with government officials the most urgent issue facing Britain today, and that is our massive deficit and our growing debt. How we deal with these things will affect our economy and our society, indeed our whole way of life.

    The decisions we make will affect every single person in the country and the effects of those decisions will stay with us for years, perhaps even decades, to come. And it is precisely because these decisions are so momentous, because they all have such enormous implications and because we cannot afford either to duck them or to get them wrong, that I want to make sure we go about the urgent task of cutting our deficit in a way that is open, responsible, and fair.

    I want this government to carry out Britain’s unavoidable deficit-reduction plan in a way that tries to strengthen and unite our country at the same time. I have said before that as we deal with the debt crisis we must take the whole country with us, and I mean it. George Osborne has said that our plans to cut the deficit must be based on the belief that we are all in this together, and he means it.

    Tomorrow, George Osborne and Danny Alexander will publish the framework for this year’s Spending Review. They will explain the principles that will underpin our approach and the process we intend to follow including, vitally, a process to engage and involve the whole country in the difficult decisions that will have to be taken.

    But today, I want to set out for the country the big arguments that form the background to the inevitably painful times that lie ahead of us. Why we need to do this, why the overall scale of the problem is even worse than we thought and why its potential consequences, and the consequences of inaction, are therefore more critical than we originally feared.

    There are three simple reasons why we have to deal with the country’s debts. One: the more the government borrows, the more it has to repay; the more it has to repay, the more lenders worry about getting their money back; and the more lenders start to worry, the less confidence there is in our economy.

    Two: investors – people lending us this money – they do not have to put their money in Britain. They will only do so if they are confident the economy is being run properly, and if confidence in our economy is hit, we run the risk of higher interest rates.

    Three: the real, human, everyday reason this is the most urgent problem facing Britain, is that higher interest rates hurt every family and every business in our land. They mean higher mortgage rates and lower employment. They mean that instead of your taxes going to pay for the things we all want, like schools and hospitals and police, your money, the money you work so hard for, is going on paying the interest on our national debt. That is why we have to do something about this.

    This argument that we have consistently made, for urgent action to start tackling the deficit this year and an accelerated plan for eliminating it over the years ahead, has already been backed by the Bank of England and the Treasury’s own analysis. It has been made more urgent still by the sovereign debt crisis in the Eurozone over recent months. The global financial markets are no longer focusing simply on the financial position of the banks. They want to know that the governments that have supported the banks over the last 18 months are taking the actions to bring their own finances under control.

    This weekend in South Korea, George Osborne received explicit backing from the G20 for the actions this government has already taken. Around the world people and their governments are waking up to the dangers of not dealing with their debts, and Britain has got to be part of that international mainstream as well.

    So we are clear about what we must do. We have also been clear about how we must do it – as the Deputy Prime Minister has said – in a way that protects the poorest and the most vulnerable in our society, in a way that unites our country rather than divides it, and in a way that demonstrates that we are all in this together.

    And we should be clear too that these problems have not just appeared overnight. [Party political content]. Now that we have had a chance to look at what has really been going on, I want to tell you the scale of the problem that we face.

    We have known for a long time that our debts are huge. Last year, our budget deficit was the largest in our peacetime history. This year – at least according to the previous government’s forecasts – it is set to be over 11% of GDP, of our whole national income.

    Today, our national debt stands at £770 billion. Within just five years it is set to nearly double to £1.4 trillion. To put it in perspective, that is some £22,000 for every man, woman and child in our country.

    Now, we knew this before. Soon, the independent Office for Budget Responsibility will set out independent forecasts that will show the scale of the problem we are in today. For the first time people will be able to see a really truly independent assessment of the nation’s finances and the size of the structural deficit.

    This important innovation has been noticed around the world, and I believe will help restore confidence in our fiscal framework. But what I can tell you today – and what we did not know for sure before, in fact what we could not know, because the previous Chancellor of the Exchequer did not make the figures available – is how much the interest on our debt is likely to increase in the years to come.

    We have looked at the figures and, based on the calculations of the last government, in five years’ time the interest we are paying on our debt – the interest alone, not the debt itself – is predicted to be around £70 billion. That is a simply staggering amount. [Party political content.]

    Let me explain what it means. Today we spend more on debt interest than we do on running our schools. But £70 billion means spending more on debt interest than we currently do on running our schools in England, plus on combating climate change, plus everything we spend on transport. Interest payments of £70 billion mean that for every single pound you pay in tax, 10 pence would be spent on the interest on our debt. Not paying off the debt itself, just paying the interest on the debt.

    Is that what people work so hard for, that their hard-earned taxes are blown on interest payments on the national debt? Think about it another way: corporation tax raises £36 billion a year, so all the money from all the tax on all the profits on every single company in Britain just pays a little bit more than half of the interest on our national debt. That is how serious this problem is. What a terrible, terrible waste of money.

    So, this is how bad things are. This is how far we have been living beyond our means. That is the legacy that our generation threatens to leave the next unless we act. So no one can deny the scale of the problem, and that the scale is huge. But what makes this such a monumental challenge is the nature of the problem.

    There are some who say that our massive deficit is just because we have been in a recession, and that when growth comes back everything will somehow be okay. But there is a flaw in this argument and it is rather a major flaw: we had a significant deficit problem way before the recession. In fact, much of the deficit is what they call ‘structural’. A problem built up before the recession, caused by the government spending and planning to spend more than we could afford. It had nothing to do with the recession and so a return to growth will not sort it out.

    This really is the crux of the problem we face today and the reason we can’t just sit here and hope for the best. The previous government really did think that they had abolished boom and bust. They thought the good times would go on forever; the economy would keep on growing and they could keep on spending.

    But the truth about that economic growth – and the tragedy – is that it was based on things that could never go on forever. The economy was based on a boom in financial services, which at its peak accounted for a quarter of all corporation-tax receipts. But this was unsustainable because the success of financial services – a great and important industry – was partly an illusion, conjured from years of low interest rates, cheap money and a bubble in the price of assets like houses.

    The economy was based on a boom in immigration, which at one point accounted for a fifth of our annual economic growth. But this was unsustainable because it is just not possible to keep bringing more and more people into our country to work while at the same time leaving millions of people to live a life on welfare.

    The economy was based on a boom in government spending, with some budgets doubled or even trebled in a decade. Again, this was not sustainable because, in the end, someone has to pay for all that spending. So when the inevitable happened and when the boom turned to bust, this country was left high and dry with a massive deficit that threatens to loom over our economy and our society for a generation. So the problem we face today is not just the size of our debts, but the nature of them.

    We are now publishing the information about how all your money is spent. We are shining a spotlight on where the waste went and it is a scandalous sight to see: a Department for Work and Pensions that increased benefit spending by over £20 billion and gave some families – some individual families – as much as £93,000 in housing benefit every year; a Ministry of Defence that allowed 14 major projects to overrun, which at the last count are between them £4.5 billion over budget; a Department of Health which almost doubled the number of managers in the NHS; and a Treasury that sanctioned all of this because it published growth forecasts that were far more optimistic than independent forecasters’.

    And look at how [this was done] while at the same time doing so much damage to the fundamentals of our economy: letting it get completely out of balance by hitching our fortunes to a select few industries; accepting as a fact of life that eight million people are economically inactive in our country; and allowing our economy to become far too dependent on a public sector whose productivity was falling; and far too hostile, I would argue, to a private sector that has now actually shrunk in size to a level not seen since 2004.

    Nothing illustrates better the total irresponsibility of this approach than the fact that [party political content] unaffordable government spending [increased] even when the economy was shrinking. By the end of last year our economy was 4% smaller than in 2007. But if you look behind the headline figures, you see why we face such a massive deficit crisis today: because while the private sector of the economy was shrinking, the public sector was continuing its inexorable expansion. While everyday life was tough for people who didn’t work in the public sector with job losses, pay cuts, reduced working hours, falling profits, for those in the public sector, life went on much as before.

    Since 2007 public spending has actually gone up by over 15% – some extra £120 billion in just three years. And while private-sector employment fell in this period by 3.7%, public-sector employment actually rose. So it has been, if you like, a tale of two economies: a public-sector boom and a private-sector bust.

    But there was a problem with this public-sector splurge. The previous government argued that more spending would support the economy, conveniently forgetting that if you start with a large structural deficit, you ramp up spending even further, which is actually going to undermine confidence and investment, rather than encourage it. So, while the people employed by the taxpayer were insulated from the harsh realities of the recession, everyone else in the economy was starting to pay the price.

    And now, today, we’re all paying the price because the size of the public sector has got way out of step with the size of the private sector. We’re going to have to try and get it back in line and that will be much more painful than if we had kept things properly in balance all along.

    And the final part of the legacy is the fact the money the government put in to the public sector did not make it dramatically better or more efficient.

    So, while the cutbacks that are coming are unavoidable now, they could have been avoided if previously we had spent wisely instead of showering the public sector with cash at a time when everyone else in the country was tightening their belt.

    So that is the overall scale and nature of the problem. And I want to be equally clear about what the potential consequences are if we fail to act decisively and quickly to cut spending, to bring our borrowing down and to reduce our deficit.

    If we do nothing, there are three possible scenarios. As we have seen, the best-case scenario is that we pay increasingly punishing amounts of interest on our debt, dozens of billions every year without ever actually paying our debts off. That huge drain on the public finances would threaten the money that could have been spent on the things we really want to spend it on: improving the NHS; giving our children a better education; investing in our country’s infrastructure. This, the best-case scenario, I would describe as dire, unprogressive, a bad outcome for our country.

    But, as I say, that’s the best case. If we fail to confront our problems we could suffer worse, a steady, painful erosion of confidence in our economy, because today almost every major country in the world is focusing on the need to cut their deficits. And the G20 has called on those countries with the biggest deficits to accelerate their plans for reducing them.

    If, in Britain, investors saw no will at the top of government to get a grip on our public finances, they would doubt Britain’s ability to pay its way. That means they would demand a higher price for taking our debt, interest rates would have to rise, investment would fall. If that were to happen, there would be no proper growth, there would be no real recovery, there would be no substantial new jobs because Britain’s economy would be beginning a slide to decline.

    These outcomes would be nothing less than disastrous, in my view, not just for our economy but for our society too, and our vision of a Britain, which we want to see, that is more free, more fair and more responsible.

    But even more worrying is the example of Greece – a sudden loss of confidence and a sharp increase in interest rates. Now, let me be clear: our debts are not as bad as Greece’s; our underlying economic position is much stronger than Greece’s; and crucially we now have a government that I would argue has already demonstrated its willingness and its ability to deal with the problem. But Greece stands as a warning of what happens to countries that lose their credibility, or whose governments pretend that difficult decisions can somehow be avoided.

    Thankfully this is a warning that has now focused the attention of the international community. This is why we believe there is only one option in front of us: to take immediate and decisive action. That’s why we have already launched and completed an in-year Spending Review to save £6 billion of public spending.

    It’s why, shortly, our new, independent Office for Budget Responsibility will set out independent forecasts for both our growth and borrowing so that never again can this country sleepwalk into such a massive debt crisis. Our actions have already been noticed around the world, and I’m glad the G20 summit this weekend explicitly endorsed the decisions we have taken.

    So this is the sober reality that I have to set out for the country today. The legacy left [party political content] is terrible. The private sector has shrunk back to what it was over six years ago. Unless we act now, interest payments in five years’ time could end up being higher than the sums we spend on our schools, on climate change and on transport combined.

    Because the legacy we have been left is so bad, the measures that we need to deal with it will be unavoidably tough. But people’s lives – and this is vital – people’s lives will be worse unless we do something now. The cause of building a fairer society will be set back for years unless we do something now. We are not alone in this; many countries around the world have been living beyond their means and they too are having to face the music. And I make this promise to everyone in Britain: you will not be left on your own in this. We are all in this together and we are going to get through this together. We will carry out Britain’s unavoidable deficit-reduction plan in a way that strengthens and unites the country.

    We are not doing this because we want to. We are not driven by some theory or some ideology. We are doing this as a government because we have to, driven by the urgent truth that unless we do so, people will suffer and our national interest will suffer too. But this government will not cut this deficit in a way that hurts those we most need to help, in a way that divides our country or in a way that undermines the spirit and ethos of our vital public services.

    Freedom, fairness, responsibility: those are the values that drive this government; they are the values that will drive our efforts to deal with our debts and to turn this country around.

    So yes, it will be tough. I make no bones about that, but we will get through this together and Britain and all of us will come out stronger on the other side. Thank you for listening.

     

    QUESTIONS AND ANSWERS:

    Question

    Prime Minister, you say we’re all in this together. Does that include the right-wing of your party, who have been lobbying so hard against any tax rises?

    Prime Minister

    That includes everybody. I mean I would argue the government immediately signalled the sign that we’re all in it together by actually saying that we’ve got to start with ourselves, that ministers should take a pay cut, that ministerial limousines should be cut back, that we’ve got to make sure Parliament costs less money and, yes, it does mean that we have to carry through tax policies, some of which we inherited from the previous government in terms of top rates of tax, as part of the picture.

    So I think picking out those two areas is right, and it will help us to make the moral argument about what sort of country this is as we deal with the incredibly difficult decisions that we have in front of us. That’s what the coalition has to do. It is going to be a very, very difficult task, but I believe it’s a task that actually helps to bring us together in this common endeavour of making sure that at the end of this five-year period, at the end of a Budget and a spending round that will be difficult, that actually people say we sorted out our problems, we paid down our debts, we found our way in the world again, we started to grow again, we started to get an economy that was about jobs and living standards and things that we want. That’s what this is about: yes, difficulties, but, as I said in the speech, we’ll come through it together and in the end we will come through it stronger and it’ll be something that Britain will be able to turn round to others in the world and say we did this important thing. It needed to be done, we did it, we did it well, and we’re a better off country as a result of it. That’s what this challenge is about.

    Thank you very much for coming. Thank you to the Open University again and thank you very much for listening. In terms of capital-gains tax, I think people understand we need to raise some modest additional revenue from capital-gains tax to pay for the increase in tax allowances that we all want to see to help the low paid, to help protect, as I said, the people that we want to help most at this time.

    And I think people also understand, and actually if you read any of the things written by anyone who is concerned about capital-gains tax, they all understand this massive leakage of revenue that takes place when you have a very low rate of capital-gains tax and a very high rate of income tax. And clearly it would be irresponsible to allow that massive leakage to take place; we do need to be in a position where we get our deficit down. I think people understand that, but they know that there’ll be an answer in the Budget and I hope that will be an answer that people will find shows that we’ve addressed the concerns that people understandably have.

    Question

    Thank you, Prime Minister. You say these cuts will affect our whole way of life, that they will affect every individual in the country, and yet you still have not spelt out any area that you’re looking for which will be painful to people. When will you start to do that? And when ministers make comparisons with, say, Canada, they blew up a hospital in Canada, they made redundant tens of thousands of people, they cut benefits too; is that what Britain has to look forward to?

    Prime Minister

    Well, what I would say is this: that we’ve got a proper process for doing this, a process where we have a Budget on the 22nd of June where we’ll set out the spending over the next three years and then I want to see a proper debate take place, that involves as many people as possible, that will lead to the actual spending reductions in departments being set out and what the consequences of those spending reductions are, and I want us to go about this in the best way possible, to take people with us.

    What I would say about Canada – and I was speaking to the Canadian Prime Minister about this just last week – while they do stand as an example of a government (it was a previous government) that sorted out a debt and a deficit crisis, the great warning they give is that actually they put it off for too many years before they did it, so the problem they had to solve was even worse by the time they got round to it. I’m determined, seeing the figures as I can now see, understanding the warnings which I made before but make again today, that we shouldn’t put this off. We need to get on with what needs to be done. Yes, we need to take people with us, yes, it will mean difficult departmental decisions, and, yes, it will inevitably mean some difficult decisions over big areas of spending like pay and pensions and benefits, and we need to explain those to people.

    But I profoundly believe that government is about acting in the national interest. It is our national interest to do this, and it’s in our national interest to try and take the country with us as we do it, but ducking the decisions would be a complete betrayal of what I believe in, which is government, public interest, national interest, doing the right thing. If this is the right thing to do, we must be able to convince people that it’s the right thing to do, and irrespective of how unpopular some of these decisions will be, we will, I think, in the long run, be able to take people through to a brighter economic future beyond.

    Question

    Just quickly, you’re saying people will get a sense of what this might involve, come the autumn and the spending round? Or within weeks?

    Prime Minister

    There will be difficult decisions in the Budget, undoubtedly. There will then be discussions over the summer about public spending and public spending changes that are going to have to be made in different departments and, as I say, these will be relatively open discussions, because once you start setting a spending envelope for the next three years – something the last government didn’t do. Once you do that, people will see the sorts of choices that we, with them, will have to make. Perhaps Danny would like to say something about it a week into looking at some of those difficult choices.

    Danny Alexander MP

    Yes, thank you, Prime Minister. I mean, I’ve spent the last week looking over the books and obviously announcements will be made in the Budget and then in due course in the Spending Review, but I’m in no doubt at all, having done that, that the approach we’re setting out today is exactly the right thing to do. Because, there has been irresponsibility in the way that the previous government handled the public finances and we have to bring responsibility to the way that we do that. That’s the point of this agenda, and, in a sense, what we’re setting out today is, if we don’t take responsibility in the way that the Prime Minister has set out, what are the consequences of that? The £70 billion that we’d end up spending on debt repayments, for example, the consequence that has for money that you can’t spend on public services. That’s why, when you look at all the other options, no matter how painful what we have to do might be, we have to do it.

    Prime Minister

    Don’t put off what needs to be done is the thing to bear in mind.

    Question

    I’m interested that you say you want to engage and involve the whole country in this very painful cutting process that has to happen. It sounds good, it also sounds like it might be little more than a talking shop. How are you going to convince people that you’ll not only listen to them, but that you’ll also act on what they want and don’t want to happen?

    Prime Minister

    Well, that’s, to me, what politics should be about. I mean, we the politicians have got a duty, I think, to explain to the country the nature and scale of the problem. I’ve tried to do that today. I’ve tried to explain what happens if we don’t do anything, if we just sat back, took the easy course, enjoyed being in office and making decisions and having meetings, just sat there, what would happen? And actually, the consequences would be very dire. So we’ve set out the envelope, as it were, of what needs to be done. Then I think there needs to be a discussion following the Budget about, well, what are the priorities, what are the things we need to protect most of all, what are the difficult decisions that we could take, and involve people.

    I don’t want to spend a lot of money doing this – there isn’t any money, as one of your predecessors put it so clearly – but I think it is a good idea to take people with you, have this discussion and debate about education spending, about whether we’re spending on transport, infrastructure, how much you try and protect capital spending, all those things, have a discussion with people, and then at the end, obviously, we have the Spending Review where you have to make your announcements.

    Inevitably, we are going to make a lot of decisions that people won’t agree with, but we have to convince people first that the big decision, the need to reduce spending and get the deficit under control, is the right one, and I think once you’ve done that, then people, even if they don’t accept some of the individual decisions – because all these choices are hard choices – we can take people with us on the basis that the alternative, the doing nothing, the sitting back, the pretending somehow this is all going to be cured by growth, that would be incomparably weak. That’s what we have to try and do.

    Question

    Mr Prime Minister, is there a danger, in this globalised world, that by talking about things being far worse than you expected that you perhaps could be seen to be talking down the British economy which could be taken unfavourably by the markets? And also, you talk about uniting the country – isn’t there a danger that you’ll succeed not in doing that but in uniting the country against you and your government?

    Prime Minister

    Let me take both of those. I think there would be a danger in what you say if we hadn’t, as a government, already taken action. We’re not just arriving in government and saying, ‘Oh, look, this is all, you know, terrible.’ We’ve arrived in government and immediately had a mini-spending round and reduced spending by £6 billion in-year, so we have sent a very strong signal about that this is a government that recognises the problem, but also wants to take action to deal with the problem, and I think what I’ve set out today is a very calm and clear analysis of how bad the problem is and what the consequences are of not taking action, but I think people can judge us by what we have already done and then obviously judge us on the Budget that we announce, the spending figures we announce, the plans for the rest of the Parliament and that, I think, is what people will rightly want to hear.

    Is there a danger we could unite people against us? This is fraught with danger. This is a very, very difficult thing we are trying to do. You know, I went to address all the peers in the House of Lords before the election. I remember looking round the room and there were all these great figures from the past, of Geoffrey Howe and Nigel Lawson, and no one in this country has had to deal with an 11% budget deficit before. Why? Because we haven’t had one before. This is worse than anything that people have had to deal with before, and so yes, there are great risks and great difficulties in dealing with it, but to me, the challenge of statesmanship is to take difficult decisions in the national interest because it’s the right thing to do, and you have to try and take people with you as you do that, but what is clear to me is an even easier way of uniting the entire country against you would be sitting back and waiting for the realisation to grow that Britain’s economy was hopelessly in debt, debt interest payments were eating up all of the hard-earned taxes that everyone in this room and beyond pays, and that the government was just too weak and feckless to do something about it.

    We have to act, we have to convince people it’s the right thing to do, and then we have to do our best to take them with us on the difficult decisions along that path. That is what this is all about. It’s not meant to be easy, it is incredibly difficult, no one’s done it before, but we have to do our very best to deal with it and I believe that we can. And I think the coalition helps us, because we have two parties together actually facing up to the British people and saying, ‘Both of us have come to this judgment that it’s the right thing to do, and we’re going to carry this through together and we’re going to try and take you with us as we do so.’

    Question

    Thank you, Prime Minster. If the situation is so much worse than you previously thought, isn’t it time to take the difficult decisions as you suggest and look again at ring-fencing, protecting particular budgets, like sending billions of pounds of taxpayers’ money overseas and the Health Service, because surely everything should be up for grabs? And also, if I may, if the public sector has got too big, how much smaller should it be? Do you have any sense of the kind of share of the economy it could/should take up?

    Prime Minister

    I don’t believe in announcing some sort of pre-conceived share of what the government should account for in an economy; I believe in trying to get the economy growing, trying to get the private sector moving, trying to fire up the engines of entrepreneurialism so actually we have a more affordable situation, that’s what needs to happen.

    In terms of the areas that we’ve ring-fenced, I think there are good reasons for them, and part of them are about what sort of country we want this to be. You know, the NHS is one of the most essential things for every family in our country, and I think it sends a very positive message to say to people: ‘yes, we are going to have to take difficult decisions, yes, there are going to have to be public spending programmes that are going to have to be cut, yes, there may be things that the government did in the past that it can’t do in the future, but when it comes to the service that every family absolutely wants to be there and provide the best they possibly can for their families, we’re going to protect that. So as we take these difficult decisions, a well-funded NHS (because health is the most important thing in your life) will be there for you.’

    Again, on the issue of overseas aid, I would say that there is a very good moral argument. Britain has built a place in the world about sticking to our word on our aid commitments, and we can hold our heads up in the G20 or the EU or in any other forum in the world, on the basis that this is a generous country, a compassionate country, that even when we’re dealing with our difficult problems, we send money to other parts of the world where people are living on a dollar a day or less. And the fact that you can look in the eyes of the French politician, the Italian politician and many others and say, ‘Well, sometimes you may not say that Britain is engaged enough in these forums, but when it comes to the promises we make, we stick to them, and we stick to them on behalf of people who are living in incredible poverty, with huge difficulties’ and I think this is the sort of country that wants its government to go on being compassionate in that way, just as the people of this country themselves are compassionate when it comes to Red Nose Day or Comic Relief or all those other events where people give so generously.

    So I think picking out those two areas is right, and it will help us to make the moral argument about what sort of country this is as we deal with the incredibly difficult decisions that we have in front of us. That’s what the coalition has to do. It is going to be a very, very difficult task, but I believe it’s a task that actually helps to bring us together in this common endeavour of making sure that at the end of this five-year period, at the end of a Budget and a spending round that will be difficult, that actually people say we sorted out our problems, we paid down our debts, we found our way in the world again, we started to grow again, we started to get an economy that was about jobs and living standards and things that we want. That’s what this is about: yes, difficulties, but, as I said in the speech, we’ll come through it together and in the end we will come through it stronger and it’ll be something that Britain will be able to turn round to others in the world and say we did this important thing. It needed to be done, we did it, we did it well, and we’re a better off country as a result of it. That’s what this challenge is about.

    Thank you very much for coming. Thank you to the Open University again and thank you very much for listening.

  • David Cameron – 2010 Speech on the Big Society

    davidcameron

    Below is the text of the speech made by David Cameron, the then Leader of the Opposition, on 31st March 2010.

    This election is about big choices. Five more years of Gordon Brown. Or change with the Conservatives.

    New energy, to get Britain moving. A new sense of ambition. And renewed optimism that we can build a better future together.

    But today, we face a big problem: people are sceptical that change can actually happen.

    Voters feel burned by the broken promises of the past and let down by the politicians of today.

    People think: ‘you’re all the same, none of you will make a difference’.

    I believe we’re starting to show that change is possible when it comes to our economy.

    To deal with the deficit that’s holding our economy back; to stop the tax rise that could kill off the recovery.

    Labour say: we must not do anything to save money or stop wasteful spending this year.

    We say: no, we need to cut spending today to stop taxes rising tomorrow.

    Acting now on debt.

    Boosting enterprise.

    That’s the way to get our economy moving.

    So yes, there is a choice – a big change in our economy.

    But this election will not just be about the economy.

    Britain’s broken society will be on the ballot too.

    And it’s especially when it comes to our social problems that people doubt whether change can really happen.

    They see drug and alcohol abuse, but feel there’s not much we can do about it.

    They see the deep poverty in some of our communities, but feel it’s here to stay.

    They experience the crime, the abuse, the incivility on our streets, but feel it’s just the way are going.

    They see families falling apart, but expect that it’s an irreversible fact of modern life.

    I despair at all these things too.

    But I don’t accept them.

    We should not accept them.

    When it comes to science we have faith in our ability to push boundaries.

    When it comes to tackling disease, we have confidence that we can find cures.

    When it comes to tackling climate change, we believe we can create the products and services that will do the job.

    So why are we so reticent to believe we can do the same for our social problems?

    If we put our mind to it, we can overcome them just the same.

    But we need big ideas.

    And it’s a big idea we’re here to talk about today.

    It’s an idea that has informed my whole time as Conservative leader.

    In my leadership campaign I said “there is such a thing as society, it’s just not the same thing as the state.”

    One of my first speeches as Conservative leader was in the East End of London, at a fantastic social enterprise, launching the Social Justice Policy Group with Iain Duncan Smith.

    Throughout the past four and a half years, I have consistently argued for, and developed policies to bring about, a shift from state to society in tackling our most stubborn social problems.

    Big society – that’s not just two words.

    It is a guiding philosophy – a society where the leading force for progress is social responsibility, not state control.

    It includes a whole set of unifying approaches – breaking state monopolies, allowing charities, social enterprises and companies to provide public services, devolving power down to neighbourhoods, making government more accountable.

    And it’s the thread that runs consistently through our whole policy programme – our plans to reform public services, mend our broken society, and rebuild trust in politics.

    They are all part of our big society agenda.

    So too are our plans to deal with our debts.

    As you heard from George Osborne and Philip Hammond earlier, building the big society does not become redundant in age where we have the biggest budget deficit in our history.

    In the long-run, cutting the bills of social failure is the best way we’ll get the deficit down.

    And in the medium-term, reforming the way we provide public services will be crucial if we are going to deliver more for less.

    This idea, the big society, is both incredibly ambitious, but also refreshingly modest.

    Ambitious because its aims are sweeping – building a fairer, richer, safer Britain, where opportunity is more equal and poverty is abolished.

    But modest too – because it’s not about some magic new plan dreamt up in Whitehall and imposed from on high.

    It’s about enabling and encouraging people to come together to solve their problems and make life better.

    Some people say that there are no big ideas in politics anymore.

    But I think this is about as big as it gets.

    It’s not the big state that will tackle our social and increase wellbeing.

    It’s the Big Society.

    And we know we have to use the state to help remake society.

    LABOUR FAILURE

    This is a long way from where we are today.

    For the past thirteen years we’ve had a government that has increased the power, role and size of the state.

    There are now more people working in quangos than we have trained soldiers.

    Labour have created 3,000 new criminal offences.

    More than one in every three jobs created since Labour came to power have been in the public sector.

    Why does Labour put such faith in laws, regulation and bureaucracy?

    Partly because that is the natural instinct of the Labour Party – and especially of Gordon Brown.

    They don’t believe change can happen without pulling a lever from on high.

    But there is another reason – and it goes to the core of New Labour.

    Always a communications strategy rather than a proper governing one, it’s the Government of “eye catching initiatives”, it’s the Government not of the summit, the action plan, the legislation-as-press-release, it’s government of the short-term, by the short-term, for the short-term.

    It doesn’t matter so much what the long term impact is – as long as it is my impact, brought about by my action, following my statement, my initiative, my press release.

    If drug abuse is rising, better to appoint a new czar and promise a crackdown rather than consider why so many young people are turning to drugs.

    In Labour’s world, for every problem there’s a government solution, for every issue an initiative.

    This is not what Beveridge dreamed of when he created the welfare state.

    And in the real world this approach is stifling the innovation, the can-do spirit and the imagination that we know is out there in people that we believe is the key to our progress.

    BIG SOCIETY

    Creating the big society means unlocking that potential.

    It is our positive alternative to Labour’s big government – and what I hope will be a proud legacy of a future Conservative government.

    Indeed just as the past six decades were about building the welfare state, I hope the next decades are about creating the big society – which has the potential to be just as transformational for the country.

    The question is how.

    Our starting point has got to be a redistribution of power away from the central state to local communities.

    As you’ve heard today, whether it’s allowing parents to choose schools, paying families to produce energy, letting residents elect a police commissioner, we will bypass the bureaucrats and give power straight to local people.

    But building the big society is not just a question of the state handing over the reins of power and hoping that people will grab them.

    We’ve got to actively help and encourage people to play their part.

    This requires a new role for the state.

    As I said in the Hugo Young lecture last November, the state must be there “galvanising, catalysing, prompting, encouraging and agitating for community engagement and social renewal.”

    So let me be very clear: the big society does not mean no government.

    It means a new kind of government.

    That’s what the policies you’ve been hearing about today are all about.

    They explains how a new Conservative Government will use the state to help remake society.

    And we’re focusing on three specific areas.

    PUBLIC SERVICE REFORM

    First, public service reform.

    From welfare reform to school reform, early years support to drug rehabilitation, we plan big changes based on clear principles and a common approach.

    Getting rid of centralised bureaucracy that wastes money.

    Breaking open state monopolies – and even giving people who work in our public services the chance to take ownership of the organisation they work in.

    Opening up public services to new providers and saying to charities and private companies – ‘if you’ve got the ideas and the people to tackle our most deep-rooted social problems, come and play a role in our public services.’

    And then paying them by the results they achieve.

    Again, it’s not enough just to pass on the reins of power and expect charities and voluntary organisations to grab them.

    The truth is when you’re paying people by results, it can take time to earn a payment – and this can lock many smaller providers out.

    It can deter some of the most innovative people.

    So here government has a new role to play.

    We’re going to bring in a new Big Society Bank so that social enterprises have access to the ‘start-up’ finance they need to bid for government contracts.

    We will use unclaimed assets from dormant bank and building society accounts and get extra private sector investment to provide hundreds of millions of pounds of new finance directly to social organisations.

    The Big Society Bank will also provide funding to independent bodies – like the Young Foundation or Esme Fairbairn Foundation – that have a track record in supporting our most innovative social enterprises.

    They’ll be there to identify the best social enterprises – however big, however small.

    Provide small amounts of working capital to help them grow.

    Mentor and advise them so they grasp the best opportunities for delivering public services that serve the public.

    And, crucially, to help to franchise the best models around the country.

    Just yesterday, I went to a brilliant social enterprise in Liverpool called Home By Mersey Strides.

    It gets former prisoners, the homeless and the long-term unemployed to repair and assemble damaged flat-pack furniture and then sells it to students and the local community.

    Started in November it already employs forty people.

    But at the moment, the amazing work of this enterprise in Liverpool is confined to just one location.

    This is the exactly the sort of thing we need to spread across the country – giving more people a chance to make a life for themselves.

    That’s the big society in action – all made possible by devolving power and using the state to encourage social organisations and socially-minded individuals to come forward.

    NEIGHBOURHOODS

    That same approach lies behind our plans to encourage people to come together in neighbourhood groups so they can work together to make life better.

    We’re going to give communities the chance to take control.

    Setting up new schools. Taking over the running of parks, libraries and post offices. Holding beat meetings so they can ask police officers what they’re doing. Planning the look, size, shape and feel of new housing developments.

    Have no doubt: if we win on May 6th, the people will have the opportunity to take power on May 7th.

    And today, we’re setting out a big ambition.

    We want every adult to be a member of an active neighbourhood group.

    I know some people argue that there isn’t the appetite for this sort of widespread community participation.

    I don’t agree.

    Look at the 400 groups who have contacted the New Schools Network to ask about setting up their own school – and our policy hasn’t even been implemented yet.

    Look at the nearly 30,000 faith-based charities who desperately want to do more – but too often find themselves excluded from mainstream funding.

    Look at the dramatic rise in volunteering during this recession – with YouthNet alone recording a 115 percent increase in the number of people asking for opportunities.

    Those who say there is no appetite for social action are just out of touch with what’s really going on in this country.

    But again, we don’t want to leave anything to chance.

    Yes, we will hold out the reins of power.

    But we want to help people grab it too.

    That’s where our plan for community organisers comes in.

    In the United States the energy, enthusiasm and passion of community organisers has fired up whole neighbourhoods to take control of their destiny.

    We want to see that right across the UK.

    So we will use revenue from the Cabinet Office FutureBuilders programme, a programme the National Audit Office has criticised for its poor delivery, and redirect it to training thousands of new community organisers in the years ahead.

    And we’ll ask independent groups like London Citizens to undertake this work.

    To teach potential community organisers how to identify the doers and the go-getters in each neighbourhood and recruit them to their cause.

    To teach them them how to bang heads together to get things done.

    Indeed, Barack Obama trained as a community organiser in Chicago.

    And I hope that in the years to come, a similar inspirational figure will emerge from community work in our inner cities – and go from the back streets of Bradford or Bolton or Birmingham all the way to Downing Street.

    But I know the arguments that some people make – that this sort of community co-operation will only happen in the richest areas.

    In building the big society, I want to make sure that Britain’s poorest areas do not get left behind as they too often are today.

    So again, we will take money from the Futurebuilders programme, and direct it to community organisers, social enterprises and neighbourhood groups in our most disadvantaged areas.

    This is the big society made real – devolving power to the people while using the state to encourage social action and help the poorest.

    CULTURE CHANGE

    But beyond these important policy changes on public services, on neighbourhood groups – we need something more, something widespread: a lasting culture change across the country.

    The big society demands a big social response, mass engagement.

    It means millions of people answering that noble question first asked by John F Kennedy: ask not what your country can do for you, but what you can do for your country.

    This won’t happen unless the big players in society make it happen.

    Business, the civil service – and yes, political parties.

    Here we have really started to show what is possible.

    Take the social action projects that have really made a difference at our party conferences.

    Take the fact that when someone gets selected as a Parliamentary candidate for the Conservative Party, I write to them and say: do something positive, do something worthwhile, start a social action project in your constituency.

    As you heard from Sayeeda this morning, there are now 150 of these projects up and running and another fifty jobs clubs too.

    And it’s why for the past three years an army of Conservative Party volunteers – Members of Parliament, councillors, candidates, members who are doctors, teachers, coaches or just willing volunteers –  have gone out to Rwanda and played a small role in the rebuilding of that country.

    But where politicians can take a lead, I don’t think they should try and pull a lever to bring about a culture change of community activism across our country.

    Building the big society is not just about what government does – not by a long way.

    And that’s why another event that is happening today – just a few minutes from here – is so exciting.

    Today sees the launch of the Big Society Network – and I hope many of you will join me in going along.

    Independent from government, the Big Society Network will be a national campaign for social change.

    Its aim is to provide encouragement and support for everyone to be an active citizen.

    It’s going to be whether or not there’s a Conservative Government.

    But of course, a Conservative Government will give it all the support we can.

    One of the ways we’ll do that is with an annual Big Society Day, celebrating the work of neighbourhood groups, highlighting the work of community heroes and building public pride in social action.

    But the Big Society Network is run by the people, for the people, and I know it will make a massive difference to the whole culture of social action in our country.

    CONCLUSION

    The vision we’ve been setting out here today is unashamedly optimistic.

    And unapologetically ambitious.

    But I didn’t come into politics to do small things.

    I don’t aspire to run this country to manage Britain’s decline.

    I’m here because I want to bring change to this country and I believe we can change this country.

    Think of what individuals and communities can do and any despair is defeated.

    Are you telling me we can’t mend our broken economy, when we’ve got some of the best entrepreneurs in the world?

    Are you telling me we can’t mend our broken society, when everywhere I go I meet the most brilliant and committed social activists?

    Are you telling me we can’t mend our politics, when people are crying out to take more control over their lives?

    No – we can get our country moving.

    We can restore hope in our future.

    We can if we come together, work together and build the big society together.