The report published by the CPRE in 2017 entitled “The End of the Road? Challenging the Road-Building Consensus”.
CPRE Report (in .pdf format)
Tag: 2017
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Rishi Sunak – 2017 Speech on the Armed Forces Covenant
The speech made by Rishi Sunak, the Conservative MP for Richmond, in the House of Commons on 2 February 2017.
It is a pleasure to follow the hon. Member for Blackpool South (Gordon Marsden). I pay tribute to my hon. Friend the Member for Berwick-upon-Tweed (Mrs Trevelyan) not just for securing the debate but for the tireless work that she does for the armed forces in this House and beyond.
From the long winter of the Crimean war to the bloody waters of Gallipoli, the history of my constituency’s Green Howards Regiment is a shining reminder that the story of British liberty is inseparable from that of our military. It is an enormous privilege to represent the almost 1,500 veterans, service personnel and their families based around Catterick Garrison and RAF Leeming, yet for many years, despite their heroism, my constituents have too often found themselves at the back of the queue for public services. There will always be more that we can do, but in housing, education and employment, I am proud to say that the armed forces covenant and the work of this Government have moved us closer than ever to ensuring that the world’s finest armed forces are never penalised for their service.
Let me begin briefly with housing. Before the covenant’s introduction, retiring service personnel in my constituency often found that they did not meet the residency requirement to be considered for council housing. As a direct consequence of this Government’s action, I am pleased to report that that is now largely a thing of the past. I pay enormous tribute to Richmondshire District Council for its tireless work in this regard. However, although military families are used to having their lives uprooted when orders of a new posting come in, they are too often also used to finding inadequate housing when they get there.
In the most recent armed forces attitude survey, only 29% of military families said that they were satisfied with the quality of maintenance in service family accommodation. CarillionAmey’s failures to live up to the standards set out by the MOD have been mentioned before, and they are a betrayal of both the taxpayer and our armed forces. I very much welcome the action that the Government have already taken in condemning that failure. With the future accommodation model on the horizon, I am mindful that it will be a great comfort for my military constituents to know that the lessons of CarillionAmey’s shortcomings have been learned so that they will not be repeated. I also echo the concerns raised by my hon. Friend the Member for Canterbury (Sir Julian Brazier) about the FAM.
Let me turn next to education, a crucial area. With frequent school changes and parents left to manage alone during tours of duty, the sacrifices made by members of our armed forces are often felt hardest by their children. The Government have taken real action by introducing the service pupil premium—as we speak, that funding is helping schools across my constituency to meet the unique needs of military children. I also commend the Government for creating the education support trust, which funds North Yorkshire County Council’s excellent service pupils champions scheme. Thanks to the hard work of council leader Carl Les and Neil Irving, that has been an enormous success. I urge the Government to maintain the funding for that programme. My constituents welcome plans to expand Catterick to a super-garrison, but I urge the Minister to ensure that discussions with the local council begin as soon as possible so that we can ensure that adequate school places are made available when the additional soldiers and their families arrive.
My final point is about spousal employment. Fifty per cent of military personnel already cite the impact on their partner’s career as making them more likely to leave the services. The reason is that the husbands and wives of Britain’s servicemen and women represent a deep reservoir of talent that all too often goes untapped. That is a problem not only for families but for our economy, which is missing out on some of our nation’s most able and resourceful citizens. The work done by charities such as Recruit for Spouses, and the Government’s ongoing spouse employment support trial, is crucial to rectifying the situation. I hope very much that such work continues, and that it will remain at the heart of our thinking about the armed forces covenant.
The soldiers, sailors and airmen of north Yorkshire do not expect the path that they have chosen to be an easy one. All they want to know is that when they take on that burden, their Government will do what they can to make it just a little lighter. The annual covenant report makes it clear that we still have work to do, but with six years of success behind us, it is equally clear to me that it is this Government who can make that a reality.
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Rishi Sunak – 2017 Speech on a Coast to Coast National Trail Walk
The speech made by Rishi Sunak, the Conservative MP for Richmond, in the House of Commons on 7 March 2017.
I thank the hon. Gentleman for informing us of that wonderful link between the ironstone mines in his constituency and Big Ben. I did not know about that museum, and I would be delighted to visit it with him. I agree wholeheartedly that promoting the walk would have many knock-on benefits and bring people to our areas to enjoy all the things that we know about and take for granted, and which we would like to open up to the rest of the country and the world. I hope that will be the case.
VisitEngland estimates that those who go on walking holidays spend about £2 billion annually. For businesses in our constituencies, that makes the iconic status of the Coast to Coast a vital source of custom. During the election campaign I called into one such business—a local pub like only Yorkshire makes—in the village of Danby Wiske near Northallerton. The landlord told me just how important the walk is to the prosperity of his business. The hundreds of walkers who stop by for a well earned pork pie and a cold pint of Yorkshire bitter in the summer months are the difference between a loss and a profit for his business. He is not alone. Coast to Coast Packhorse in Kirkby Stephen is a successful local start-up that transports walkers’ luggage to their next stop. Businesses along the Coast to Coast, perhaps including the museum that the hon. Gentleman mentioned, tell the same story.
When we talk about infrastructure investment in this House, as the Government rightly do, we all have a similar image in our minds—gigantic bridges, high-speed railway and motorways—but for rural areas, infrastructure such as the Coast to Coast can be just as vital because it allows communities to capitalise effectively on their national assets. I know public money is tight, but national trail funding is an investment that would be repaid many times over, both in the long-term economic benefits it would generate and in the communities it would help to sustain—communities whose hands repair our dry stone walls, tend our forests and keep our fields green and lush. If they were to disappear because of a lack of jobs of investment, every one of us would be poorer.
Natural England is currently focused on its coastal path project, due to open in 2020—an ambitious national trail that showcases the best of our coastal areas. As that programme moves towards completion over the coming years, I urge Natural England to look closely at finally giving the Coast to Coast the recognition it deserves. For now, a feasibility study would reflect the widespread support that the campaign has received and support the message of so many businesses from St Bees to Robin Hood’s Bay. Officially promoting and protecting the route would do so much for their prosperity.
The Coast to Coast route is part of the legacy of a unique man whose contribution to the natural world is unparalleled. Across mountains and fells, wandering through valleys and villages, it is an inspirational crossing of the north of England. In the words of Alf Wainwright himself:
“Surely there cannot be a finer itinerary for a long-distance walk!”
I hope the Minister will consider the case that the “Make it National” campaign has put forward and do all he can to encourage Natural England to launch a feasibility study as soon as possible. The Coast to Coast is already a national treasure. It is time to recognise it as a national trail.
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Rishi Sunak – 2017 Speech on the Budget
The speech made by Rishi Sunak, the Conservative MP for Richmond, in the House of Commons on 9 March 2017.
It is a privilege to speak in this debate. In all the excitement from Fleet Street, it would be easy to forget who yesterday’s Budget is really about, so I will share with the House how many of my constituents will feel about it. Whether it is the schoolboy with a first-rate technical education who will now have the chance of a better job and a solid wage, the small business owner who knows that when she speaks up her Government listen, or the mother who knows there is a Conservative Chancellor at the helm making the difficult decisions so that her children have well-funded public services and a country that lives within its means, for the hard-working people of North Yorkshire this is a Budget that delivers where they need it most.
Norman Lamb
How does that schoolboy or schoolgirl feel about an 8% cut in funding per student by 2020 under this Government?
Rishi Sunak
I am not sure that I recognise the right hon. Gentleman’s figure. The schools budget has been protected, and the Government are rightly consulting on the iniquity in the current funding system which means that constituents in my rural area are worse off to the tune of hundreds of pounds per pupil compared with very similar pupils in other parts of the country. I am delighted that the Government are addressing those iniquities in their consultation.
Seema Malhotra
Will the hon. Gentleman give way?
Rishi Sunak
If the hon. Lady does not mind, I will make some progress and come back to her.
I begin with small businesses. My predecessor, Lord Hague, has a well-documented enthusiasm for beer, so it will come as no surprise to Members that pubs are a cornerstone of my rural constituency’s economy. Following in his footsteps is difficult enough, but it is impossible for me to visit a pub in my constituency without seeing a picture on the wall of William pulling a pint with the landlord. Not only is my constituency home to more than 200 pubs, but I am proud to say that it hosts the Campaign for Real Ale’s 2017 pub of the year: the community-owned George & Dragon in Hudswell. I was delighted to be in Hudswell just last Friday when the landlord Stu Miller, his family and team received their award in the loud company of everybody from the village.
In recent months I, like many other hon. Members, raised concerns that the revaluation of business rates risks penalising such small, enterprising businesses. I am delighted to say that this was the Budget of a Chancellor who, like any good barman, listens to our concerns. For the landlords who run them, the jobs that depend on them and the communities that enjoy them, this Budget’s £1,000 business rate discount will make a real difference to many pubs at a time when money is still tight.
But pubs are not the only rural businesses that the Budget will help. Auction marts and livery yards across North Yorkshire have seen particularly steep rises in their business rates because the idiosyncrasies of such companies are not well understood by officials and because the last revaluation coincided with the disastrous foot and mouth epidemic. Such idiosyncrasies are more than even the most ingenious civil servant could be expected to foresee. Auction marts, livery yards and riding schools are particularly important to the fabric of our rural community, so I thank the Chancellor for the extremely welcome creation of the new £300 million discretionary business rates fund, which will put decision making back in the hands of communities and allow businesses in constituencies such as mine to benefit from the local knowledge of councils in ensuring a smooth transition to the new schedule.
Stephen Doughty
The hon. Gentleman was talking about pubs, and he will know that I am a keen pub goer. Indeed, I was in a pub in his constituency the other day, enjoying a pint with my cousins. What does he have to say to customers in pubs, who are going to face a 3% increase in the price of a pint?
Rishi Sunak
What I say to customers and to the hon. Gentleman is that I am sure that the Minister doing the wind-up will be able to say how much better off customers are from having benefited from several years of freezes in beer duty that would otherwise have been put in place. I am sure they would also like to hear that this Government will be consulting on new duty rates for white cider and still wine to see what more could be done to help customers who drink those alcoholic beverages. Lastly, let me say that I would welcome him back to my constituency any time and will be happy to share a pint with him next time he is there.
Seema Malhotra
I have not yet been to a pub in the hon. Gentleman’s constituency, but I recognise the benefits for pubs in my constituency. May I extend the question about customers in pubs, many of whom may be self-employed? Have they reflected with him on their concerns about the proposed rise in national insurance?
Rishi Sunak
I thank the hon. Lady for raising that issue. If she will allow me, I will deal with that exact point later in my speech.
The last measure in support of local businesses that I wish to highlight is the £690 million fund available for local authorities to address urban congestion. Congestion is not something one would ordinarily associate with the rural idyll of North Yorkshire’s villages and market towns, but the residents and community of Northallerton are relentlessly frustrated by the level crossing near our vibrant and diverse high street, as its impact on local business is substantial. I have convened meetings of local authorities and Network Rail to discuss plans to alleviate the congestion, and I very much hope the Chancellor’s new fund can help us.
As the Chancellor so rightly pointed out in his Budget speech, supporting our businesses is a means to an end, not an end in itself. If our children are to benefit from the more than 2 million new jobs created since 2010, they will need the right skills. The 2.4 million apprenticeships created in the last Parliament are a momentous achievement, but we must also recognise that although most of us think of apprentices as young people, 16 to 19-year-olds—school leavers—account for less than 10% of the increase in new apprentices. That means that too many school leavers are still sticking with an inappropriate classroom education rather than a first-class technical one. The Chancellor’s announcement of new T-levels is a crucial step in redressing the balance and closing for good the gap between the classroom and the factory floor, for which our economy has paid a high price for too long. I therefore welcome the new half a billion pound investment in increasing training hours, the streamlining of technical qualifications, the provision of high-quality work placements and the introduction of maintenance loans. Taken together, that is a powerful package to help to ensure parity of esteem between technical and academic education.
Yet I also urge Ministers to continue to look carefully at my campaign, supported in the recent industrial strategy, to create a UCAS-style system for apprenticeships. This branded, one-stop-shop portal would not only end the classroom divide between those applying to university and those applying for apprenticeships, but, by bringing everything together in one place, help businesses to connect more easily with young apprentices in schools.
Turning to national insurance, I, like many Conservative Members, have always believed in low taxes as a spur to economic growth, but when a Government inherit a deficit of £100 billion the greatest priority must be returning to sound finances and doing so in a way that is fair. I believe it is right that those who benefit from public services make an appropriate contribution to paying for them, and that is what this Budget’s changes to national insurance will ensure. Sixty per cent. of self-employed workers—those earning less than £16,000—will see a decrease in their national insurance contributions as a result of the removal of the regressive class 2 band. Workers earning up to almost £33,000 will be no worse off when these changes are taken together with the increases to the personal allowance, and for those earning more the average increase in contributions will be a few hundred pounds. It is right to ask: is this fair? I believe that it is.
Historically, different rates of national insurance for the self-employed and the employed reflected significantly different benefits and access to public benefits, but that difference is no longer there. Indeed, changes to the state pension, which is partly funded by national insurance, mean that self-employed workers now benefit from an extra £1,800 annually in pension—this is something they would need to save up to £50,000 for to receive in the private sector. Similarly, self-employed couples starting a family can now benefit from almost £5,000 in tax-free childcare support.
In this House, I always hear calls for investment in public services, such as this Budget has provided for in social care, but those investments need to be paid for. Her Majesty’s Revenue and Customs has estimated that it is losing about £5 billion a year from the increasing trend of self-employment, so it is right that we make small changes to ensure that everybody contributes to the public services and benefits we value. It is important to recognise that even after these changes the tax system will still recognise the particular issues faced by self-employed workers and will favour them in its tax rates and treatment. They will benefit from a lower rate of national insurance than employees; they will still not bear the cost of employers’ national insurance, which is levied at a substantial 13.8%; they will still have the ability to offset losses and gains over years; and they will still benefit from a more generous treatment of tax-deductable expenses. I am also encouraged that in the longer term the Government are committed to looking at the whole issue of the increasing trend towards self-employment, and to ensuring that we reflect those changes in the economy in our tax system and ensure that everybody is treated fairly. This small change is thus necessary to protect the things we value, and it is fair and proportionate.
In conclusion, we have all learned to be a little cautious of economic forecasts, but if the Office for Budget Responsibility is right, the first students to sit their T-levels will do so in a country with 1 million new jobs, double today’s productivity growth and, for the first time in two decades, national debt falling as a percentage of GDP. This Budget, like the ones that came before it, is building a country where our businesses will not have to pay for the profligacy of the past and our children can look forward to a bright future. Nothing could be more important than that, so I commend this Budget to the House.
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Rishi Sunak – 2017 Parliamentary Question on Free Ports
The parliamentary question asked by Rishi Sunak, the Conservative MP for Richmond, in the House of Commons on 18 April 2017.
From Merseyside to Teesside, ports are a great northern success story. Will my right hon. Friend look into the potential for the creation of free ports throughout the United Kingdom? Free trade zones would increase trade, create manufacturing jobs and boost regional growth, which are all key ingredients of our future economic prosperity.
Mr Hammond
My hon. Friend has made the case for free ports, and the Government have heard that case very clearly. We will consider all options that have the potential to support our ambition to see Britain as a great global trading nation, but before making any decisions we shall need to consider carefully not only the advantages that free ports can deliver, but the costs and potential risks associated with them.
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Rishi Sunak – 2017 Speech on the Finance Bill
The speech made by Rishi Sunak, the Conservative MP for Richmond, in the House of Commons on 18 April 2017.
From the discovery of Australia to the invention of the cat’s eye, the history of Yorkshire’s people is nothing if not entrepreneurial. That spirit is alive and well in my constituency in particular. From Heck sausages to Tennants auction house and the Wensleydale Creamery, ambitious SMEs are at the heart of our community and economy. Before I arrived in this place, I spent my career investing, backing businesses like those with the capital they needed to grow. I am delighted that this Finance Bill recognises what my years in the investment industry taught me—that ready access to finance is the fuel of success for ambitious SMEs, just as successful SMEs are the fuel of a prosperous economy. Yet, as I have said in the House before, the UK funding landscape for growth businesses presents challenges.
Just 3% of British companies manage to expand beyond 10 employees—half the success rate of businesses in America. The UK has a relatively shallow bond market for early stage businesses, and a venture capital sector that is just a seventh the size of America’s. British entrepreneurs often face an uphill struggle to attract equity risk capital. That is why the Government have enhanced the enterprise investment scheme and created the seed enterprise investment scheme. Since their inception, these programmes have together helped more than 3,000 companies to raise more than £15 billion in early stage finance. The Finance Bill builds on that success to ensure that these schemes help even more small businesses to access investment, grow and create jobs.
Under the current regulations, shares with a right to future conversion are unfortunately regarded as a pre-arranged exit, making them ineligible for EIS and SEIS. But that goes against the reality of conversion arrangements. Far from opening the door to tax avoiders, conversions are often a crucial mechanism for facilitating an initial public offering. If an SME has the ambition to accelerate its growth through accessing the public markets, the Government should not stand in the way. I am pleased to say that the Bill addresses that anomaly. However, there is more we can do.
Many lawyers, accountants, investors and entrepreneurs say that the EIS process is often too complicated and takes too long. The Government’s recent consultation on the advance assurance service, which lets HMRC assess a firm’s EIS eligibility before it seeks funding was welcome, and provoked ideas about what we can do to speed things up. First, I can see the logic for introducing some form of fee for advance assurance. This would help to raise the resources necessary for HMRC to provide a smoother service with greater transparency around processing times and specific dates for document review. Secondly, we could look at the use of standardised documentation, which would save time and money for all participants, enabling HMRC to speed up its approvals.
Thirdly, we must look at how to simplify the EIS rules and their interpretation. Of course, provisions must be made to stop tax avoidance, but the widespread view of practitioners is that the pendulum has swung too far the other way. In the words of one leading venture capital lawyer, there are now “too many gotchas” in the current set of rules. In general, it is the view of the EIS Association, admirably chaired by Lord Flight, that a large part of the reason for this complexity is the need for our laws to comply with EU state aid rules. I hope that when we leave the European Union, the Government will have the opportunity to look at simplifying the EIS rules and ensure that our SMEs get the capital they need to flourish.
I will briefly touch on two other points in the Bill: tax reliefs for sports clubs and companies donating to them; and museums and touring exhibitions. The internet enables us to be so much closer, but we cannot replicate the presence of being close to a Barbara Hepworth sculpture or looking at Shakespeare’s first folio. The Government’s incentives to take exhibitions around the country will enable us all to share in our cultural history and heritage.
When it comes to backing small businesses, this Finance Bill—like the others that came before it—shows wholeheartedly why this Government’s record is unmatched. As the British voters decide in the next few weeks who can best steward Britain’s economy, I commend this Bill to the House.
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Rishi Sunak – 2017 Parliamentary Question on the Friarage Hospital
The parliamentary question asked by Rishi Sunak, the Conservative MP for Richmond, in the House of Commons on 4 July 2017.
Last week I met doctors and nurses at the Friarage, an excellent small hospital serving a rural population spread over 1,000 square miles. Will my right hon. Friend urge South Tees Hospitals NHS Foundation Trust to do everything it can to ensure the continued provision of emergency care clinicians and anaesthetists at this vital local hospital?
Mr Dunne
I am aware that my hon. Friend has taken a strong interest in the number of consultants and anaesthetists available at the Friarage hospital. I will be happy to meet him to discuss his concerns in person.
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Rishi Sunak – 2017 Parliamentary Question on “Living Within Our Means”
The parliamentary question asked by Rishi Sunak, the Conservative MP for Richmond, in the House of Commons on 18 July 2017.
The Chancellor will be aware that the current cost of Government borrowing is at a historical low, with gilt yields at 1%. Does he agree that, if markets lose confidence in our ability to live within our means, the cost of that borrowing would spiral, costing us billions of pounds? That would mean less to spend on our public services.
Mr Hammond
My hon. Friend is right to warn of the danger of a loss of market confidence in UK fiscal policy—I am looking very hard at the right hon. Member for Hayes and Harlington (John McDonnell). If markets lose confidence in UK fiscal policy, they will re-price lending to the United Kingdom. We already spend more every year on servicing our debt than on our armed forces and police services together. It would do a huge disservice to taxpayers in this country if we created conditions that would cause the cost of that debt to rise.
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Kemi Badenoch – 2017 Maiden Speech in the House of Commons
The maiden speech made by Kemi Badenoch, the Conservative MP for Saffron Walden, in the House of Commons on 19 July 2017.
It is with humility and excitement that I make my maiden speech representing the constituency of Saffron Walden, the jewel of Essex. I am honoured to serve the people of this beautiful constituency and hope I can repay the faith they have placed in me.
I am also burdened by the weight of expectation. You see, Madam Deputy Speaker, Saffron Walden has not had a maiden speech since Rab Butler’s in 1929. He held three of the great offices of state, but I am most proud that, as a Conservative Minister, he introduced the Education Act 1944, which gave every British child a statutory right to free secondary education.
I also pay tribute to my most recent predecessor, the right hon. Sir Alan Haselhurst, who served Saffron Walden with distinction for 40 years. He is well known to many of us here as a former Deputy Speaker and one of the kindest Members to grace this House—the ultimate gentleman. He is much loved in the constituency, and I am forever grateful to him for being a brilliant mentor and helping every day of the campaign, come rain or shine. I am still bowled over whenever I remember that Sir Alan became a Member of Parliament 10 years before I was born. It has been a joy to follow in his footsteps—except when we were out delivering leaflets and I found myself consistently outrun by an 80-year-old man.
Like you, Madam Deputy Speaker, I am proud to be an Essex girl. Saffron Walden is a great place and was judged the best rural place to live by no less than the Daily Mail. After seven years of Conservative-led Government, unemployment is at an all-time low of 0.7%, and 99% of children go to a good or outstanding primary or secondary school. We also boast the UK’s oldest land college in Writtle.
The constituency covers rural Chelmsford and the major settlements of Thaxted, Great Dunmow and the medieval market town of Saffron Walden itself. It was called Saffron Walden because of its large saffron crop. The spice was worth its weight in gold and was used in medicine, in perfume and even as an aphrodisiac. Like the saffron crocus, I am not a native of the great county of Essex—I come from more exotic climes. While I may not have all the attributes of this versatile flower, I hope that I will equally take root in the area, bring prosperity to the local people and add some colour and spice to this Chamber.
Much has changed since then, but more change is needed—change to the rickety network on which mobile phones operate, change to the inadequate broadband service that has left parts of the constituency with little access to the outside world, and change to the railway line that has become synonymous with being late for work. We cannot claim to offer opportunities to rural areas if basic infrastructure is not provided. My constituents are more likely to get to Spain faster than London, because we have Stansted, the country’s fourth-largest airport. It has brought jobs—and noise—and growth to the area on a huge scale, and has cemented my constituency’s position as the epicentre of business, travel and wealth in Essex.
I am often inexplicably confused with a member of the Labour party—I cannot think why. I am a Conservative. To all intents and purposes, I am a first-generation immigrant. I was born in Wimbledon, but I grew up in Nigeria. I chose to make the United Kingdom my home. Growing up in Nigeria I saw real poverty—I experienced it, including living without electricity and doing my homework by candlelight, because the state electricity board could not provide power, and fetching water in heavy, rusty buckets from a borehole a mile away, because the nationalised water company could not get water out of the taps. Unlike many colleagues born since 1980, I was unlucky enough to live under socialist policies. It is not something I would wish on anyone, and it is just one of the reasons why I am a Conservative. I believe that the state should provide social security, but it must also provide a means for people to lift themselves out of poverty.
As a woman of African origin, I also believe that there is a lot that Africa can teach us. Sound money is not just a catchy phrase. The lesson of Zimbabwe is salient for us today. Money cannot be printed and redistribution cannot be successful without first creating wealth. Edmund Burke said that society is a contract between the dead, the living and those yet to be born. I say to colleagues who are wavering on tackling the debt and the deficit, “Hold your nerve.” This is part of that contract that we owe to our descendants. To leave our children carrying the burdens of our debt and excesses is morally wrong.
I believe in free markets and free trade. But there is more to conservatism than economic liberalism—there is respect for the rule of law; personal responsibility; freedom of speech and of association; and opportunity through meritocracy. Those freedoms are being subtly eroded in an era when emotion and feeling are prized above reason and logic. It is those freedoms that I will seek to defend during my time in this House.
There are few countries in the world where you can go in one generation from immigrant to parliamentarian. Michael Howard spoke of the British dream—people choosing this country because of its tolerance and its opportunity. It is a land where a girl from Nigeria can move, aged 16, be accepted as British and have the great honour of representing Saffron Walden.
There are some in this country, and this Chamber, who seek to denigrate the traditions of this Parliament, portraying this House as a bastion of privilege and class, that “reeks of the establishment”, as someone said. It is no coincidence that those who seek to undermine the institutions of this island—Parliament, monarchy, Church and family—also propagate a world view that sees Britain, and the values we hold dear, as a force for bad in the world. Growing up in Nigeria, the view was rather different. The UK was a beacon, a shining light, a promise of a better life.
Often we hear the radical reformer John Bright misquoted as saying that the House of Commons is the mother of all Parliaments. What he actually said was that this country is the mother of all Parliaments. Our political institutions may not always be held in high esteem, but I believe that politics is a mirror held up to society. Yes, it can sometimes be unedifying. Yes, we see human weakness on display. But it also embodies much that is great in our country. When I walk down these corridors and stand in this Chamber, once graced by my heroes, Winston Churchill, Airey Neave and Margaret Thatcher, I am filled with nothing but awe, respect and pride for all that it stands for.
As Woody Allen said about sex, “If it’s not messy, you’re not doing it right.” The same is true of democracy. It is not always predictable; its results are not always elegant; it can throw up results that no one expected—but we adjust. The British Parliament always has adjusted, and that is why it is the oldest in the world: it takes its lead from the British people.
We live in difficult times and face historic challenges. People are rightly concerned about what Brexit will mean for the country, for their jobs and for their families. But I do not believe that winter is coming. I believe that the vote for Brexit was the greatest ever vote of confidence in the project of the United Kingdom: that vision of a global Britain to which the Minister referred. It is a project that, as a young African girl, I dreamed about becoming part of. As a British woman, I now have the great honour of delivering that project for my constituents in the greatest Parliament on earth.
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Simon Kirby – 2017 Speech at the LSE Global FinTech Investor Forum
The speech made by Simon Kirby, the then Economic Secretary to the Treasury, at the London Stock Exchange in London on 16 March 2017.
Good morning everyone.
It’s always a pleasure to come to the London Stock Exchange – one of the oldest exchanges in the world, one of the biggest, and one of the best.
Based in the heart of the City, it’s also a symbol of what we are lucky to have in the country at large. And that’s our outstanding prowess in the world of global finance.
Because it is a truth universally acknowledged – perhaps not always universally liked, if you ask our global rivals – but a truth universally acknowledged nonetheless, that the UK is one of the best places for financial services firms in the world.
And today, we opened the markets talking about something that’s going to help us keep it that way – our FinTech.
Now FinTech is, without doubt, a pretty broad term, covering a pretty wide range of different specialisms. But for me it boils down to the technological advances that will mean real improvements to our financial services – whether that’s in how money is lent, payments are made or decisions are taken.
And as you’d expect in a country that is home to so many world-class financial experts, we’re proving to be the best in the world in this sector.
I’ve heard from businesses of all kinds about how they are shaking up financial services with their innovative, new developments.
And that’s not just about what the big, established players of this industry are doing.
It’s also about all the exciting new start ups – both across the country, and even internationally – I met several British companies, for example, when I went to visit the Cyberport FinTech space in Hong Kong just a couple of months ago.
So what is clear to me, is that in FinTech, we’ve got all the ingredients for a real British success story. And the question for all of us is how we can help it unfold further.
There is of course, much we’ve already done to create the right environment for success.
Let me give just three examples of things that people keep telling me they envy in the British system.
Firstly, the FCA’s regulatory sandbox.
That’s already proven its worth to businesses which need to test out their new models and products with real consumers – and to do so in a safe regulatory space.
Secondly, the Bank of England’s FinTech Accelerator.
Which is giving FinTech companies the chance to work with the Bank to find innovative solutions that help it improve how it performs its job as the country’s central bank.
And thirdly, the FinTech Delivery Panel.
Which is all about our leading finance and FinTech companies – and often rivals at that – coming together to work out how to make the UK an even better place to do business – and I look forward to the ideas that will come out of this group.
One last thing deserves a mention – Open Banking.
We’re not quite there yet – the full release is on track for January next year – but this is really going to make a big difference to change banking as we know it– allowing customers to give FinTech companies safe access to their personal data held by their bank, so they can take advantage of new services.
It is clear that we’ve got a good environment for FinTech to flourish.
But I’ve been asking FinTech companies what more can be done.
And the answers I get tend to fall into three main categories – it’s about talent, international connections and investment.
So let me take each one of those in turn.
And let’s start with the people. Because as a business man myself, I’ve seen first-hand that it’s the people that make all the difference to any company’s success.
And there are two points to make.
Firstly, on developing our own home grown talent. And I think there’s an awful lot we’re doing to reform our education system and prepare the next generation for the 21st century – look, for example, at the fact that we were one of the first countries in the world to put computer coding on the national curriculum.
But the other point is about international talent – and I know Brexit has worried some of you on this front – especially as FinTech is one of the most international sectors in what is already a very international industry as a whole.
Let me reassure you then, that we know how important this is. In fact, I held a meeting with FinTech companies just last month – with my colleague, Robert Goodwill, the Immigration Minister – to discuss this very issue. And I want to say to you, as I said to those firms, that though this government is determined to control our immigration, I cannot conceive of any circumstances in which we would want to stop companies moving highly qualified, highly skilled people into their businesses here in the UK.
We want all of our industries to keep reaping the benefits of the world’s best talent – both in terms of the international members of staff you already have and value, and those you will want to hire in the future.
The next big ask you had of us, was that we keep working to make links between the UK and other international markets.
Because many of you have a really global outlook – we’ve recently been supporting World First, for example, as they take their money transfer business across the globe, with openings in China, India, Korea and Japan. And in turn many international companies are coming to the UK – last month, for example, we welcomed Square to the Treasury – the San Francisco mobile payments company, which is preparing to launch its UK operations. governments can do a lot to help such companies as they go across borders, by bringing down barriers, and paving the way for greater co-operation and more complementary regulatory systems.
That’s what we’ve been working with our international partners to do – particularly, through our bespoke FinTech Bridges.
We’ve already got three of these agreements with big FinTech markets – Singapore, the Republic of Korea and China. And we’re working on our next with Hong Kong – to build on the regulatory agreement between the FCA and Hong Kong Monetary Authority we already have in place. All of which is good news for those British start-ups I met in Hong Kong’s Cyberport.
And I’ve been flying the flag for British FinTech throughout my visits to Asia.
I promoted it at the Asian Financial Forum in January.
I went to Singapore’s inaugural FinTech festival with a trade mission of impressive British FinTechs.
And I’ve been talking FinTech in my visits to Indonesia, Malaysia and Hong Kong.
We’re also really fortunate to have Eileen Burbidge as our special envoy – to promote our FinTech sector – both at home in the UK, and with international investors.
That brings me to the last issue you raised with us, which is investment – and again, I know Brexit is a factor in your concerns.
But it’s not the cause of them. Because even before the Referendum in February last year, an EY report told us that capital investment in UK FinTech is falling behind that in other countries.
Consider just this one stat – in 2015, the UK attracted £524 million of external investment into FinTech. While New York and California got about £5 billion between them.
So we’ve been working with you to turn that around. And one of the things we’ve got coming up to do that, is our International FinTech Conference on the 12th April.
This is going to gather investors from the UK, and around the world, to see for themselves what British FinTech has to offer.
It’s going to have a glittering cast of senior business leaders, like the London Stock Exchange’s very own Xavier Rolet, and the CEOs of the British Business Bank, TransferWise and Funding Circle.
As well, of course, as the Chancellor of the Exchequer, the Governor of the Bank of England and our special FinTech envoy, Eileen Burbidge.
So if there’s anyone here who doesn’t know about the conference who wants to come along, details are online, or you’re always welcome to get in touch with my office at the Treasury.
Because my door is very much open to British FinTechs.
I’ve already been meeting companies from across the country, and listening to what you have to tell me.
And I want to keep hearing from you – to know what you’re worried about, and what you’re excited about too.
Because this government is here to support you as you build your businesses up, compete internationally, and collaborate internationally too.
So if you ask me, the world should watch this space – because British FinTech is going to go from strength to strength.