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Tag: 2024

  • Harriett Baldwin – 2024 Speech on the Economy, Welfare and Public Services

    Harriett Baldwin – 2024 Speech on the Economy, Welfare and Public Services

    The speech made by Harriett Baldwin, the Conservative MP for West Worcestershire, in the House of Commons on 22 July 2024.

    May I start by adding my congratulations to the Chancellor on being the first woman to hold that office in the history of our country? At this rate, the Labour party might even have a female Prime Minister some time this century. I also thank the shadow Chancellor, my right hon. Friend the Member for Godalming and Ash (Jeremy Hunt) for everything he did while in office. In particular, I thank the voters of West Worcestershire for returning me here for the fifth time.

    I was one of those who was here in 2010. It is ironic that I should be following the right hon. Member for Birmingham Hodge Hill and Solihull North (Liam Byrne), because he was the one who left that famous note, “I’m sorry: there is no money left.” If people want to know what a bad economic legacy looks like, I was here in 2010 when we received one from the Labour party. The deficit was over 10% and rising and unemployment was over 8%. Inflation was nearly twice its target, and the banking system had just collapsed and had to be bailed out by taxpayers. We can contrast that with the economic legacy of 2024 that the new Government inherit.

    Despite the economic costs of the pandemic and the energy crisis, the UK is enjoying the fastest growth in the G7. Unemployment is now half the rate it was in 2010. Inflation is back on target. We have a well-capitalised banking system, almost completely out of taxpayers’ hands. Wages are now rising faster than inflation. We are the fourth-largest exporter in the world. Members do not have to take my word for it; they can take the words of the International Monetary Fund, which in a recently published report said that

    “the UK economy is approaching a soft landing”,

    with

    “growth recovering faster than expected…inflation has fallen faster than was envisaged…The banking system remains healthy”.

    So I approach the economic measures in the King’s Speech with a degree of trepidation, because they come at a time when the economy was back on track. While I agree that “securing economic growth” is a fundamental mission of government, I would add the word “non-inflationary”. I have looked and looked through this King’s Speech, and I cannot see any measures that magic up economic growth. Growth does not just happen because it is written into the King’s Speech.

    In my time as Chair of the Treasury Committee, we had the opportunity to have a private session with the IMF. It is interesting to observe that many of the measures put forward by the Government in the King’s Speech were in the IMF’s prescription for the UK economy. Reforming planning and building on our beloved green belt were from the IMF, as was strengthening the role of the Office for Budget Responsibility and crowding in private capital on net zero projects via a national wealth fund.

    What else does the IMF want? Well, colleagues may not be surprised to learn that it also wants to see more taxes. It does not quite say it like that—it calls it “closing tax loopholes” or “mobilising additional revenues”. Some of the measures we heard about in our private session with the IMF were as follows. The first was setting capital gains tax rates in line with income tax rates. I hope that Ministers will rule that one out. The second was subjecting the sale of primary residences to capital gains tax. I hope that Ministers will rule that one out. The third was ending inheritance tax loopholes for pensions, family businesses and farms. I hope that Ministers will rule that one out. The fourth was revaluing all of England’s homes for council tax, and especially those over £320,000 in value. I hope that Ministers will rule that one out. The IMF also liked the idea of road pricing; I hope that Ministers will rule that one out. It also wants to bring forward considerably the date at which the state pension age increases.

    Given that those are all tax measures that the IMF recommends, I am sure that the Chancellor is beginning to contemplate them. When the Government respond to today’s debate, I hope that they will specifically rule those things out, because the tax rises that the Government admit to already—the pensioner tax, the tax on education, and regulatory costs galore—are bad enough. Let us hear some specific denials on those other taxes.

  • Liam Byrne – 2024 Speech on the Economy, Welfare and Public Services

    Liam Byrne – 2024 Speech on the Economy, Welfare and Public Services

    The speech made by Liam Byrne, the Labour MP for Birmingham Hodge Hill and Solihull North, in the House of Commons on 22 July 2024.

    It is an honour to speak in this King’s Speech debate, and a privilege to have heard the first female Chancellor in our history deliver such a remarkable opening salvo. I will say a word not just about the King’s Speech itself, but the strategy behind it. When the Chancellor and my right hon. Friend the Prime Minister launched our manifesto, there was a clear ambition at its heart to ignite a revolution in wealth creation in this country not just for some, but for all. That strategy was absolutely right, because among the worst of our inheritance is the scandal—the moral emergency —of the inequality of wealth that now scars our country.

    Madam Deputy Speaker, you and I could take a walk this afternoon down to a coffee bar called Shot in Mayfair, which would serve us coffee for £265 a shot. We could go next door to a restaurant Aragawa, where they serve steak for £900 apiece. Some, if they were lucky enough, could book a night at the Raffles hotel for £25,000. These are extraordinary prices, but not unremarkable in a country that now has the highest sales of Rolls-Royces, superyachts and private jets. This absurdity of affluence sits alongside a country where, on the last figures, more than 1,000 people died homeless, tens of thousands of people are dying from the diseases of poverty, and 2.1 million people can put food on the table only because of the tender mercies of food banks. That is the inequality of wealth bequeathed to this Government. It is best illustrated perhaps by one figure: the wealth of the top 1% has grown by 31 times the wealth of everybody else over the past 14 years. That is why my right hon. Friend the Chancellor was right to say that there has to be a revolution in wealth creation in this country—not just for some but for all.

    The measures that my right hon. Friend has set out are the right ones: a plan for growth and a plan to devolve economic power out of the paralysis of Westminster and Whitehall and down to mayors and local councils. Alongside that is a revolution in planning law, infrastructure law and skills finance. I urge my friends on the Government Front Bench to maximise the amount of power held locally, because it is local people and local leaders who know best how to grow our economy. If we have a growing economy, the key is then to ensure that growth is fairly shared. That is why the employment rights Bill is so important. As my right hon. Friend said, there has not been growth in living standards for more than 14 years. That is why we need to ensure that there is a fair day’s pay for a fair day’s work.

    Alongside that, the draft equality Bill is extremely important, and I urge my right hon. Friend to go further and to use the consolidation of pension funds to inaugurate an era of civic capitalism in this country, where we use the combined £2 trillion-worth of pension savings to encourage businesses that are good, not businesses that are bad, such as those that she revealed when she was a brilliant Chair of the Business and Trade Committee, or the scandals that we exposed in the last Parliament with McDonald’s, Asda and other firms behaving in a way reminiscent, frankly, of Victorian capitalism.

    Once we have begun raising incomes, we must help people build well. That is why the changes to the housing market that my right hon. Friend proposed are so important. We can underpin that and maximise investment into the infrastructure of this country by ensuring that there is a national wealth fund, but I would go further, and I ask her to look at how we can put together not just the national wealth fund but the Crown estate fund, which is set for reform under a Bill in the King’s Speech.

    We could go a step further and review the whole portfolio of investments held by the Government and by UK Government Investments. The last Government made some pretty strange investments during covid, including, I understand, buying shares in Bolton Wanderers, shares in a bespoke boutique whisky company, and even, it is said in some newspapers, shares in a strange firm that organises international sex parties called Killing Kittens. I say to my friends on the Government Front Bench that it is time we had a Domesday Book that consolidated assets in this country. Let us look at what we need and what we do not. Crucially, let us look at how we maximise dividends going to ordinary working people in this country to help them build wealth for themselves.

    I conclude with this: on the Government Benches, we have long known that we only deliver and maximise freedom and opportunity for people in this country, and make those freedoms and opportunities real, if there is security. There is no security without wealth, which is why the ambition that my right hon. Friend set out not simply to build a wealthy democracy but a democracy of wealth, is the right one.

  • Sarah Olney – 2024 Speech on the Economy, Welfare and Public Services

    Sarah Olney – 2024 Speech on the Economy, Welfare and Public Services

    The speech made by Sarah Olney, the Liberal Democrat spokesperson on the economy, in the House of Commons on 22 July 2024.

    Thank you, Madam Deputy Speaker. It is a pleasure to see you in the Chair.

    It is a real pleasure to contribute to the debate on behalf of the Liberal Democrats, not just because I am speaking on behalf of so many more of them than I used to, but because it gives me an opportunity to welcome the Chancellor of the Exchequer to her place and express my personal congratulations on becoming the first woman in the UK’s history to hold the position. I am personally delighted. I spent many years working in banking and finance, and I know how male-dominated those industries still are. I wish her well in her new role and look forward to working with her over the coming Parliament. The Liberal Democrats will be vigorous in scrutinising her plans, but we will always work in the national interest, and I can assure her of the support of the Liberal Democrats on all those matters on which we can agree.

    I am sure that one of the things on which we can certainly agree is that the right hon. Lady and her colleagues have received a dismal inheritance from the departing Conservative Administration. The numbers reveal a dispiriting picture of low growth, high interest rates and a record fall in living standards delivered by an out-of-touch and incompetent Conservative party that took people for granted for years. Our constituents see this situation reflected in the increases in their mortgage payments, the hike in their energy bills and the prices they pay at the tills for their weekly shop. They see it in public services that are in a state of crisis and an NHS that is failing to deliver the care they need. The Liberal Democrats welcome the seriousness with which this King’s Speech focuses on stability, reinvesting in our crippled public services and growing the economy.

    We welcome measures such as the introduction of an industrial strategy council to co-ordinate policy on economic growth, but the immediate and pressing problems that our constituents are facing in their everyday lives cannot just be addressed by centralised, top-down institutions run from Whitehall. Our economy needs to grow from the bottom up, bringing prosperity to every community, taking away the barriers to entry for small businesses and enabling individuals across the country to make the most of their skills and talents. The Liberal Democrats want urgent measures introduced to give immediate support to families and small businesses.

    While out on the doorsteps during the general election campaign, I and my 71 colleagues heard a clear message from our constituents that their biggest priority was fixing the NHS. We are here because we promised to fight hard for a better NHS for our constituents and for communities across the country. That is why we are calling for the Chancellor to immediately draw up a Budget for health and social care. We cannot deliver economic growth without fixing the crisis in our NHS and in social care. NHS waiting lists are at an all-time high; it can take weeks to see a GP and it is now almost impossible to see an NHS dentist. Everyone deserves access to the care they need when they need it and where they need it. A successful health and social care system is fundamental to a fair society and our country’s prosperity.

    The failures of the Conservative Administration led to a dramatic increase in the number of people experiencing long-term sickness conditions and the Liberal Democrats will continue to push for public service investment to help reduce NHS waiting lists to get people back to work.

    Ben Maguire (North Cornwall) (LD)

    Does my hon. Friend agree that reforming social care should be one of the most urgent priorities of this Government? The Royal Cornwall hospitals NHS trust recently announced that £26 million a year is spent on patients who are medically well but unable to be discharged due to a lack of social care packages.

    Sarah Olney

    My hon. Friend is right, and it is wonderful to see him in his place; the people of North Cornwall will be well served by his championing of social care, which was front and centre of the Liberal Democrats manifesto in the general election.

    The most direct way to alleviate poverty is to increase the money paid to the poorest households. We know that our fellow citizens who are living in the severest poverty are likely to be families with small children. Growing up in poverty affects children’s educational chances and is likely to impact their physical and mental health, holding them back from achieving their true potential. Taking immediate steps to tackle child poverty should therefore be a priority. We believe that removing the two-child cap is the most cost-effective way of immediately lifting 500,000 children out of poverty, while helping to make costs more manageable for parents. That would have a direct benefit to families struggling with the cost of living crisis. Not only do we have a moral obligation to change this unnecessary policy but it is the most cost-effective way of alleviating poverty with a broad range of economic advantages, including supporting more parents back into the workforce. So I urge the Chancellor of the Exchequer to remove the two-child limit on social security payments in her Budget to ensure that all families who need it receive immediate reassurance and support.

    But families of all sizes are suffering under the cost of living crisis and desperately need help. Our schools are increasingly having to battle the effects of poverty to ensure children are able to attend school and have the best chance of reaching their potential, and too many children are distracted from their lessons because they have not had enough to eat. The Liberal Democrats set out plans in our manifesto for free school meals for all children living in poverty, with an ambition to extend them to all children once public finances allow. The Liberal Democrats are calling on the Government to consider funding free school meals as a priority to alleviate the pressure on the finances of the families who are struggling the most. This will also contribute to positive educational outcomes that will benefit us all in the future.

    The Liberal Democrats welcome many of the measures in the King’s Speech that aim to boost economic growth, and we support the Government’s objective to make that a priority. We welcome moves to boost stability and provide strategic leadership via an industrial strategy council and to increase investment through pension reform. However, our small businesses and local high streets need immediate support, and the Government need to do more to ensure economic growth can reach every part of the United Kingdom and that small businesses and entrepreneurs can quickly rediscover the confidence that they need to invest after years of Conservative chaos and mismanagement. Liberal Democrats want to see more direct support which will impact local community businesses. We believe we need swift action specifically to tackle high energy costs and we continue to call for business rate reform.

    A new Parliament presents a real opportunity to begin to properly rebuild our trading relationships with Europe. From speaking with many small business owners I understand the pressures and limitations that current trade deals with Europe pose to businesses. We must tackle the arduous legislation around importing and exporting goods, which significantly limits the opportunities for small businesses to grow. The Liberal Democrats have a comprehensive plan to rebuild trust and co-operation with Europe, and we understand that to be a crucial aspect of the support that businesses urgently need. We welcome the Government’s acknowledgement of the need to reform the apprenticeship levy. However, we would like to see them go further and replace the current scheme with a broader and more flexible skills and training levy. We hope that the Government will join us in encouraging the take-up of apprenticeships, particularly for young people, and support our calls to guarantee that they are paid at least the national minimum wage by scrapping the lower apprentice rate. We understand the broad economic benefits of supporting the development of skilled workers and are optimistic about the advantages that can bring to business.

    The recent years of chaos and irresponsible Conservative administration have left a substantial challenge for the new Government to tackle. We do not underestimate the work lying ahead to get the economy back up and running, to nurture an environment that will allow businesses to thrive and to restore the public services that provide care for people when they need it. My Liberal Democrat colleagues and I will hold the new Government to account to ensure that they deliver on the promises outlined by His Majesty on Wednesday as we work to rectify the damage done by the Conservatives: rebuilding our economy, supporting individual communities and small businesses, and urgently investing in health and social care.

  • Rachel Reeves – 2024 Speech on the Economy, Welfare and Public Services

    Rachel Reeves – 2024 Speech on the Economy, Welfare and Public Services

    The speech made by Rachel Reeves, the Chancellor of the Exchequer, in the House of Commons on 22 July 2024.

    It is a pleasure to open today’s King’s Speech debate on behalf of His Majesty’s Government. I always enjoy debating with the right hon. Member for Godalming and Ash (Jeremy Hunt), though I must say I rather prefer doing so from this side of the Chamber. [Hon. Members: “Hear, hear.”]

    I appreciate the shadow Chancellor’s generous words on my appointment and also his tribute to officials, who I can confirm are indeed first rate. It has been more than 14 years since a Labour Government were in office for a state opening of Parliament—14 years of chaos, 14 years of economic irresponsibility, 14 years of wasted opportunities and 14 years since there has been a Labour Chancellor of the Exchequer standing at this Dispatch Box. Today, I pay tribute to my most recent Labour predecessor, the late Lord Darling. He was an outstanding Chancellor, a kind man and a good friend.

    Mr Speaker, it is also the very first time that there has been a female Chancellor of the Exchequer. On my arrival at the Treasury, I learned that there is some debate about when the first Chancellor was appointed. It could have been 800 years ago, when one Ralph de Leicester was given the title of “Chancellor of the Exchequer” for the first time, or, 900 years ago, when “Henry the Treasurer” was referenced in the Domesday Book. It could even have been 1,000 years ago, when Alfred the Great was in effect the first Master of the Mint. Whichever it is, I am sure the whole House would agree on one thing—that we have waited far too long for a woman to be the Chancellor of the Exchequer. [HON. MEMBERS: “Hear, hear.”]

    I stand here today proud, but also deeply conscious of the responsibility that I now have: a responsibility to women across the country whose work is too often undervalued; and a responsibility to every young woman and girl, who should know that there is no ceiling on their ambitions and no limit on their potential.

    Sarah Edwards (Tamworth) (Lab)

    Seven Tory men have stood at that Dispatch Box over the past 14 years and the result has been an economic crisis, crumbling public services and a cost of living crisis. Can we expect a change of approach from the new female Chancellor of the Exchequer?

    Rachel Reeves

    One thing is that I hope to be in post for a bit longer than some of my predecessors.

    As tempting as it is, I do not intend to conduct a full sweep of the past 1,000 years of economic history from the Dispatch Box today—[Hon. Members: “Ah”!] I am sorry. However, we must talk about the past 14 years. I warned that whoever won the general election would inherit the worst set of circumstances since the second world war, and I have seen nothing to change my mind since I arrived at the Treasury. I will update the House on our public spending inheritance before Parliament rises for recess.

    I heard what the shadow Chancellor said from the Dispatch Box now and on the television yesterday, which was to claim that I should be grateful for what he has left us. That is unbelievable, because he knows the truth and is now trying to rewrite history. In doing so, he has reminded the British people why the Conservatives lost the election. They are out of touch, deluded and unable to defend the indefensible. In the weeks ahead, it will become clear what those in his party did. They stored up problems, failed to take the tough decisions and then they ran away, leaving it to us—the Labour Government—to pick up the pieces and clear up their mess.

    Today, I want to focus on one thing above all else: economic growth. Since 2010, Conservative Chancellor after Conservative Chancellor, including the now shadow Chancellor, stressed the importance of growth. We have had more growth plans than we have had Prime Ministers or Chancellors, and that is quite a lot, but growth requires more than talk; it requires action. Like so much else with the previous Administration, when we scratch beneath the surface the façade crumbles, and all that is left is the evidence of 14 years of failure.

    Matt Western (Warwick and Leamington) (Lab)

    I congratulate my right hon. Friend on her appointment; she is making an excellent speech. Friday’s ONS report showed that public sector borrowing was 25% higher than forecast. Does she agree that that underlines why it was so important to have a fully costed and fully funded manifesto to restore confidence in the public finances, and that it was a surprise that certain other parties did not follow the same route?

    Rachel Reeves

    I thank my hon. Friend for that question. He speaks powerfully, and I pay tribute to his work in the last Parliament, particularly around education and skills. This is a really important point. For me, the most important pages of the manifesto that we stood on were the three grey pages at the back of it, which set out all our spending commitments and how they would be paid for. That was important, because to earn the trust of the electorate parties must be really clear about where the money will come from and what they will use it for. That is what we did in our manifesto, and it is what we will do in Government.

    The shadow Chancellor made some points about GDP, comparing ours with that of other countries, but since 2010 UK GDP per capita—that is the most important measure, because it reflects how people feel and the money that they have—has grown slower than the G7 average, slower than the EU average, and slower than the OECD average. Treasury analysis that I requested when I became Chancellor shows that, had the UK economy grown at the average OECD rate these last 14 years, our economy would be over £140 billion bigger today. That could have brought in an additional £58 billion of tax revenues in the last year alone—money that could have been used for our schools, hospitals and other vital public services. Growth is about more than just lines on a chart; it is about the money in people’s pockets, and Treasury analysis shows that achieving the rate of growth of similar economies would have been worth more than £5,000 for every household in Britain.

    The shadow Chancellor stood up and once again claimed that he bequeathed a great legacy. Seriously? The last Parliament was the first on record where living standards were lower at the end than at the start. The highest level of debt since the 1960s, the highest tax burden in 70 years, mortgages through the roof, the economy only just recovering after last year’s recession, economic inactivity numbers last week showing a further rise, and borrowing numbers last week showing over £3 billion more borrowing than the OBR expected—that is the Conservatives’ legacy. If that is a good inheritance, I would hate to see what a bad one looks like. I think deep down the shadow Chancellor knows that. In fact, he does know it.

    Yesterday, the shadow Chancellor admitted what we all know: that the manifesto that he campaigned on was undeliverable, and the money for the tax cuts that he promised simply was not there. If he wanted to show the country that his party has listened, and learned from its mistakes, he would have used his speech this afternoon to apologise, but he did not, and that tells us everything that we need to know about this Conservative party: party first, country second; political self-interest ahead of the national interest; irresponsibility before the public good. Let me say this to the Conservative party, “We will not stop holding you responsible for the damage that you have done to our economy and to our country.” Never again will we allow the Conservatives to crash our economy. They failed this country. They shied away from tough choices, and we will not repeat their mistakes. It falls on us, this new Labour Government, to fix the foundations so that we can rebuild Britain and make every part of our country better off. We will govern through actions, not words, and we have already begun to do just that, because there is no time to waste.

    Less than 72 hours after I was appointed as Chancellor, I put growth at the very heart of our work. Working alongside my right hon. Friend the Deputy Prime Minister, I set out reforms to our planning system—reforms that the Conservative party did not deliver in 14 years. Our reforms restore mandatory targets to build the homes that we desperately need, end the absurd ban on onshore wind to deliver home-grown cheap energy and recover planning appeals for projects that sat on the desks of Ministers in the last Parliament for far too long. Those are tough decisions that the Conservative party already opposes.

    Why was that my first act as Chancellor? Because getting our economy growing is urgent, and this King’s Speech shows that we are getting to work.

    Mr Mark Francois (Rayleigh and Wickford) (Con)

    On the matter of mandatory housing targets, having been a constituency MP for 23 years and seen them tried in a number of different ways, may I humbly offer the Chancellor this, with all sincerity? There is such a thing as good development, but it only works if it is something that we do with people and not to people. This Stalinist approach will not work.

    Rachel Reeves

    I have been compared to a lot of things, Madam Deputy Speaker, but I have never been compared to Joseph Stalin.

    Our approach is a brownfield-first approach. We will reintroduce those mandatory targets; of course it is up to local authorities and local communities to decide where the housing should be built, but the answer cannot always be no. If the answer is always no, we will continue as we are, with home ownership declining and mortgages and rents going through the roof. On the Government side of the House, we are not willing to tolerate that.

    This King’s Speech shows that we are getting to work. As my right hon. Friend the Prime Minister set out, our programme for government is founded on principles of security, fairness and opportunity. Our No. 1 mission is to secure sustained economic growth in our great country through a new partnership between Government, business and working people that prioritises wealth creation for all of our communities.

    We will fix the foundations of our economy so we can rebuild Britain and make every part of our country better off. There are a number of important pieces of legislation in the King’s Speech that will help us to grow the economy. In this speech, I will focus on three in particular: the Budget Responsibility Bill to restore economic stability, the national wealth fund Bill to drive investments and the pension schemes Bill to reform our economy. Those Bills speak not just to our programme for government, but also to trust in politics. They show that we will govern as we campaigned and that we will meet our promises to the British people.

    In the election campaign, I said the first step we would take would be to restore economic stability, because stability is the precondition to a healthy, growing economy. It is how we keep taxes, inflation and mortgages as low as possible. After years of irresponsibility, we are putting our economy on firm ground once again. We introduced the new Budget Responsibility Bill on Thursday to deliver on our manifesto commitment to introduce a fiscal lock so that I can keep an iron grip on our country’s finances.

    Kit Malthouse (North West Hampshire) (Con)

    The Chancellor and I sat on the Treasury Committee together many years ago, and she will know from our time together that economics is as much art as it is science. Given that she is effectively giving a veto over economic policy to the OBR through this Bill, she must recognise that we need to understand what the people in the OBR believe, what their theories of economics are and what principles they attach themselves to. What further scrutiny of the chair of the OBR and the people doing the forecast will be available to this House, given that effectively they will be co-Chancellor with her during the next few years?

    Rachel Reeves

    The Treasury Committee, as the right hon. Gentleman knows, can call in the chair and other members of the Office for Budget Responsibility, but his comments show exactly why we need this Bill: so that never again can we have a repeat of the mini Budget. The Bill will require every announcement that makes significant permanent changes to tax and spending to be subject to an independent assessment by the Office for Budget Responsibility. Why? Because unfunded, reckless commitments do not just threaten our public finances; they threaten people’s incomes and they threaten people’s mortgages. We saw that in the wake of the mini-Budget presided over by the former Member for South West Norfolk. I understand that she has taken umbrage in recent days at the idea that that episode was disastrous. Well, if any Conservative Member would like to dispute that fact today, I would be more than happy to give way. [Hon. Members: “Come on then!”] They cheered it at the time, but they are not cheering it now, and I do not imagine that they would put it on their leaflets.

    The Conservatives should be ashamed of what they did because people up and down the country are still paying the price for the chaos that they caused. We say: never again. The Budget Responsibility Bill will enshrine that commitment in law.

    Mr Luke Charters (York Outer) (Lab)

    During the pandemic, the friends and family of Conservatives were awarded contracts for work that were never fulfilled. My constituents would love to know how we can get their money back, perhaps through the covid corruption commissioner.

    Rachel Reeves

    I enjoyed campaigning for my hon. Friend in York Outer, and it is great to see him in his place today. Stability means a tough set of fiscal rules, but it also means spending public money wisely, as he says. The last Government hiked taxes while allowing waste and inefficiency to spiral out of control. At no time was that more evident than during the pandemic, especially when it came to personal protective equipment. The former Prime Minister, when he was Chancellor, signed cheque after cheque after cheque for billions of pounds-worth of contracts that did not deliver for the NHS when it needed it—that is simply unacceptable.

    Today, I can announce that I am beginning the process of appointing a covid corruption commissioner to get back what is owed to the British people. That money, which is today in the hands of fraudsters, belongs in our public services, and we want it back. The commissioner will report to me, working with the Secretary of State for Health and Social Care, and their report will be presented to Parliament for all Members to see. I will not tolerate waste. I will treat taxpayers’ money with respect and return stability to our public finances.

    The second Bill I will speak to is the national wealth fund Bill. We know that economic stability is vital for investors and for business—the small business looking to grow; the global business looking to expand in the UK; the entrepreneur looking to take their first steps. To support them, stability must sit alongside investment.

    Andrew George (St Ives) (LD)

    On the effective use of public funds, is the Chancellor aware not only of the alleged corruption in the way that covid aid was distributed, but of the large number of tax loopholes in this economy? For example, in Cornwall, over £500 million of taxpayers’ money was handed out to holiday home owners not only through covid aid but through the small business rate relief scheme and other tax loopholes. At the same time, only a third of that amount has gone into social housing for first-time users. Will she look at the whole issue of parity in the way public funds are used, to support people who need housing?

    Rachel Reeves

    I welcome the hon. Member back to this place. I enjoyed sparring with him in my early days in Parliament, and it is great to see him back in the House. He is absolutely right that we need to get value for money for all tax incentives. I will ensure that the Treasury and the Ministry of Housing, Communities and Local Government look at the changes that he suggests.

    The last Government’s record on investment was dismal. We now sit behind every single member of the G7 when it comes to business investment as a share of GDP. That is not an abstract economic problem. Weak investment holds back productivity and hurts living standards; it leaves households poorer and wages lower.

    The King’s Speech deals directly with the need to unlock private investment through a new national wealth fund Bill. That will be supported by an injection of capital, part funded by an increase to the windfall tax on oil and gas giants. It will make transformative investments in industries of the future, such as carbon capture and storage, and green hydrogen. It will mobilise billions of pounds-worth of additional private sector investment in our industrial heartlands and coastal communities while generating a return for taxpayers. The national wealth fund will work with local partners including mayors, as well as the devolved Administrations in Scotland, Wales and Northern Ireland, to develop an investment offer that meets the needs of all our nations and regions. It will simplify a complex landscape of support for businesses today, aligning key institutions such as the UK Infrastructure Bank and the British Business Bank under the one banner of the national wealth fund.

    Barry Gardiner (Brent West) (Lab)

    I heartily applaud what my right hon. Friend is saying about the renewed windfall tax. Will she also look at the fact that, in this country, we have the lowest basic rate of tax on oil and gas companies anywhere in the world? The average is 74%; in this country, it is 38%.

    Rachel Reeves

    As my hon. Friend knows, we committed in our manifesto to a three percentage point uplift to the current energy profits levy, which we will use to fund the national wealth fund. That fund will power jobs and prosperity in all parts of our country, and that work is already well under way. In my first week in office, I welcomed the report of the national wealth fund taskforce, and I thank the former Governor of the Bank of England, Mark Carney, and the whole taskforce for their outstanding work. This Bill will put the national wealth fund on a statutory footing with clear objectives, crowding in private investment to create wealth across Britain.

    Deirdre Costigan (Ealing Southall) (Lab)

    Under the Conservatives, businesses and working people were held back by a complete and abject failure to build the new homes that my constituents in Ealing Southall were crying out for, the laboratory spaces that will provide the jobs of the future, or the national infrastructure needed for businesses and working people to prosper. Will my right hon. Friend assure this House that, under her chancellorship, we will finally get Britain building again?

    Rachel Reeves

    I welcome the election of my hon. Friend in Ealing Southall—I think her constituents and the whole House can see what a strong advocate she will be for her local community. She is absolutely right: we have to get Britain building again. We have to build the homes and the transport, energy and digital infrastructure that our country desperately needs.

    Jim Shannon (Strangford) (DUP)

    I thank the Chancellor for giving me the chance to intervene. When it comes to rebuilding and the house building programme that she has suggested should happen, in the papers today, it is suggested that people on a wage of £70,000 cannot get a mortgage. In Northern Ireland, those on a smaller wage cannot get a mortgage either, so can I ask the Chancellor this direct and hopefully positive question, which will hopefully receive a positive answer: what can she do to improve access to mortgages for those who want to own their accommodation, rather than rent it? What can she do to make sure that everyone in the United Kingdom of Great Britain and Northern Ireland can benefit, as she has clearly said they will?

    Rachel Reeves

    I thank the hon. Gentleman for that intervention. One of the biggest challenges people face with getting a mortgage is building up the deposit. That is why we have committed to a mortgage guarantee scheme, to help those people who cannot rely on the bank of mum and dad to get on the housing ladder. That is a really important commitment, as is our commitment to build the homes: unless we build more homes, home ownership will continue to go backwards, as it did over the past few years.

    Alongside stability and investment in our economy must come reform, because delivering economic growth requires tough choices. It means taking on vested interests and confronting issues that politicians have too often avoided. The last Government refused to engage with those choices, and refused to level with the British people about what was required. This Government will be different. We have already demonstrated that through a series of reforms to our planning system, and are bringing forward further legislation in the King’s Speech to get Britain building.

    Today, I want to focus on another area of our economy where reform is vital: our pension schemes. People across our country work hard to save for the future; they want a better, more secure retirement with the most generous pension possible. At the same time, British businesses with high growth potential need capital to support their expansion. Pension funds are at the heart of this. There will soon be over £800 billion of assets in defined contribution pension schemes, but for too long, those assets have not been targeted towards UK markets. That has impacted British savers, and it has impacted British business.

    The last Government also said that this was a problem, and I welcome that acknowledgement, but they never introduced the legislation needed to make the change. We believe in deeds, not words, so we will strengthen investment from private pension providers by bringing forward the pension schemes Bill in the King’s Speech. It will boost pension pots by over £11,000 through a new and improved value for money framework. Through an investment shift in DC schemes, just a 1% shift in asset allocation could deliver £8 billion of new productive investment into the UK economy.

    To ensure that the Bill is as strong as possible, I am today launching a pensions investment review, led by the first ever joint Commons Minister appointed between the Treasury and the Department for Work and Pensions—my hon. Friend the Member for Wycombe (Emma Reynolds), the Pensions Minister. This will include a review of the local government pension scheme, the seventh largest pension fund in the world, to ensure it is getting the best value from the savings of nearly 7 million public sector workers, the majority of whom are women and the majority of whom are low-paid. They deserve a pension that is working for them. Together, these reforms will kick-start economic growth by unlocking investment that has been tied up for too long.

    Kit Malthouse

    Will the right hon. Lady give way?

    Rachel Reeves

    I have already given way to the right hon. Gentleman.

    Madam Deputy Speaker (Dame Siobhain McDonagh)

    Order. Could I just urge the House to think about interventions? There is a very long list of Members who want to speak and lots of people who want to make their maiden speech, and it would be great if they could all get in.

    Rachel Reeves

    Madam Deputy Speaker, you will be pleased to know that I will not apprise the House of every Bill that supports economic growth in the King’s Speech. Needless to say, there are many more—from the English devolution Bill to transfer power back into the hands of local communities to the employment rights Bill to make work pay, and the Great British Energy Bill to take back control of our country’s energy and create new jobs across the United Kingdom. Growing our economy flows through almost every word of this Address.

    The British people put their trust in us on 4 July to fix the foundations of our economy, to rebuild Britain and to make every part of our great country better off. I do not take that trust for granted. We will not let people down, and I am ready to deliver the change that we need. I know it will take time and I know it will require hard work, but we are already getting on with the job by ending a reckless, chaotic approach to economic management, by putting politics back in the service of working people and by making economic growth our fundamental mission. I commend the Address to the House.

  • Jeremy Hunt – 2024 Speech on the Economy, Welfare and Public Services

    Jeremy Hunt – 2024 Speech on the Economy, Welfare and Public Services

    The speech made by Jeremy Hunt, the Conservative MP for Godalming and Ash and Shadow Chancellor of the Exchequer, in the House of Commons on 22 July 2024.

    I beg to move an amendment, at the end of the Question to add:

    “but humbly regret that there is no mention in the Gracious Speech of the improved economic conditions the Government is inheriting, with the fastest recorded growth in the G7, inflation at the Bank of England’s target for the second month in a row, and unemployment at half the rate that it was in 2010; further regret that there is no mention of how to make necessary savings on welfare; urge the Government to meet the commitment set out in the Labour Party’s manifesto not to raise taxes on working people; regret that the Gracious Speech fails to make a commitment not to use changes to reliefs to raise taxes; and call on the Government to increase income tax thresholds to prevent income tax from being charged on the State Pension.”

    It is an important and rather painful part of our democracy that today I am a shadow Chancellor, responding to the King’s Speech in exactly the same way that the new Chancellor responded to me just a few months ago, so I start by congratulating her, as well as Mr and Mrs Reeves. As the father of two girls, one of whom has her 10th birthday today, I warmly welcome the smashing of a glass ceiling by Britain’s first female Chancellor. As I said on election night, she has led the Labour party on a difficult journey, which has changed it for the better. Her stated commitment to fiscal responsibility, stability and economic growth has been consistent and, I am sure, not always easy. Unfortunately for us, her success in holding the line means that we face rather a lot of Labour MPs on the Government Benches, but I wish her well in her new role.

    I also commend to the right hon. Lady the superb Treasury officials she now inherits, and put on record my gratitude to them the excellent work they did for me, staying up in the middle of the night ahead of fiscal events, engaging in tense negotiations with spending Departments—and occasionally, it has to be said, with No. 10—bringing me endless flat whites and Pret lunches to keep me going and, most of all, making my family feel welcome in the goldfish bowl that is Downing Street. It is part of the magic of democracy that those same officials have seamlessly transferred their allegiance from me to her, and I know that they will serve her extremely well.

    In opposition, we will not oppose for its own sake, and there are a number of Bills in the King’s Speech that we welcome. The right hon. Lady is right to focus on growth, and the improvements on planning will build on many reforms introduced by the last Government, including the 110 growth measures I introduced in last year’s autumn statement. Any boost to house building is also welcome. We delivered 1 million homes in the last Parliament, and she will soon find out that if she is to deliver 1.5 million, she will not be able to duck reforming environmental regulations—a change that Labour blocked in the last Parliament but will deliver an extra 100,000 homes. I caution her not to over-rely on bringing back top-down targets. In the end, we will build more houses only if we change attitudes to new housing, and that is unlikely to happen if unpopular targets are steamrollered through local communities.

    We will also look carefully at the right hon. Lady’s Budget Responsibility Bill. We are proud that a Conservative Government set up the Office for Budget Responsibility, and I commend the work of Richard Hughes and his team. We did not always agree, but in the end, that is the point of an independent watchdog. We all understand the politics of a Bill that allows the Government to make endless references to the mini Budget, but if the right hon. Lady is really committed to fiscal responsibility alongside growth, I hope that she will today confirm that she will not fiddle with the five-year debt rule to allow increased debt through the back door. We—and, it has to be said, markets—will be monitoring the overall level of debt very carefully to make sure that that does not happen. I also hope that she will commission the OBR to do 10-year forecasts of our long-term growth rate rather than five-year forecasts, as at present, in order to bake long-term decision making into Treasury thinking.

    Bill Esterson (Sefton Central) (Lab)

    The shadow Chancellor was talking just now about fiscal responsibility. During the election campaign, he committed to a series of tax cuts, but I noticed that yesterday on Laura Kuenssberg’s show he said that it would not have been possible for him to proceed with those tax cuts. What has changed, and why did he make that commitment during the election campaign, knowing full well that he could not afford to carry it out?

    Jeremy Hunt

    I am grateful to the hon. Gentleman for that intervention, because it allows me to explain why he is completely mistaken in what he is saying. We offered a set of carefully and fully funded tax cuts—unlike the £38.5 billion of unfunded spending commitments that came from the Labour party—but we always said that they would be brought in over time over the next Parliament. We did not make a commitment that they would come in immediately, and indeed they would not have. We would have done it in a responsible way.

    When it comes to dubious claims, the new Chancellor herself has been making some that do not withstand scrutiny. She said, for example, that the economy would have been £140 billion bigger if we had matched the average OECD growth rate, but she knows that the OECD is a diverse group of 38 countries, including many with economies very different from our own, such as Turkey, Mexico or Luxembourg. A much more meaningful comparison is with other similar G7 economies, which shows that since 2010 we have grown faster than France, Italy, Germany and Japan. Indeed, the International Monetary Fund says that thanks to difficult measures taken by the last Conservative Government, we will grow faster than any of those four countries, not just in the short term but over the next six years. One reason for that is our record on attracting investment.

    Since 2010, greenfield foreign direct investment has been higher in the UK than anywhere in the world except the United States and China. In the last year alone, Nissan, Jaguar Land Rover, Tata, BMW Mini, Google and Microsoft have all voted for the UK with their dollars, not least because of cuts in business taxation, such as full expensing, introduced by the last Government. If the Chancellor now looks for back-door ways to increase business taxation, as many fear, she will risk the UK’s attractiveness to foreign investors, of which she is now the beneficiary.

    Chris McDonald (Stockton North) (Lab)

    That investment is very important to my constituents in Stockton North, where many companies are poised to make billions of pounds of industrial investment. They tell me that they prize economic stability above all else, so will the right hon. Gentleman now commit to supporting the Budget Responsibility Bill to give those investors the security they need?

    Jeremy Hunt

    Yes, we are minded to support the Bill, subject to having had a close look at it, because we think it is perfectly sensible. Whether it is completely necessary is a different question, but it is perfectly sensible.

    We have grave concerns about some elements of the King’s Speech, with a Times editorial this week describing some of its Bills as

    “a dose of traditional socialist dogma”.

    Tony Blair came to office having removed the old clause IV of the Labour party constitution, because he knew that state-run businesses are rarely successful and usually end up being bailed out by the taxpayer. Last week, with their railway and energy plans, the Government brought forward more nationalisation than Blair ever did—indeed, more than any Government in modern times.

    If the Chancellor really cares about fiscal responsibility, she should beware. The reason why unions like publicly owned utilities is that they give them more leverage on pay and more ability to demand bail-outs. Unlearning the lessons of history will mean more strikes and bigger bills for the taxpayer.

    An even bigger concern for business is the impact on jobs of Labour’s new deal for workers. We have seen the creation of almost 4 million jobs since 2010, which is nearly 800 jobs for every single day that Conservative Governments were in office. The president of the Confederation of British Industry described the UK as a “job-creation factory” but, like many others, he expressed concern that the Deputy Prime Minister’s new labour laws could put that at risk.

    Day one rights sound attractive, but employers fear they will mean a flood of tribunal claims, meaning it is safer not to offer a job at all. That is why the Federation of Small Businesses responded to the King’s Speech by saying that companies are worried about increased costs and risks. In the end, French-style labour laws will lead to French levels of unemployment, which are nearly double our own—indeed, they are close to what they were when the last Labour Government were in office. By contrast, the Conservatives nearly halved unemployment over the last 14 years, and it would be a tragedy for working families up and down the country if the new Government turned the clock back.

    Finally, the most dubious claim of all is this nonsense about the Government having the worst economic inheritance since the second world war, which everybody knows is just a pretext for long-planned tax rises. People can see what nonsense this is by simply comparing it with the last time we had a change of Government in 2010. Inflation was 3.4%, compared with 2% today. Unemployment was 8%, compared with 4.4% today. Growth was forecast then to be among the slowest in the G7, compared with the fastest today. Instead of an economy in which markets and the pound were facing meltdown, the Chancellor has inherited an economy in which the Office for National Statistics has said that growth is “going gangbusters.”

    That has been backed up by even more data since the election. May’s GDP figures show that Britain’s growth was double the rate predicted by economists, and the fastest in more than two years. New figures from S&P show that, in February, British businesses were among the most optimistic in the world—top of the league again, according to the ONS. Inflation has remained at its 2% target level.

    In her BBC interview yesterday, the Chancellor glossed over those figures, putting on the most shocked expression she could muster, to pretend that public finances are worse than she expected. But the root cause of the pressure on public finances—£400 billion in pandemic support and £94 billion in cost of living support—was never a secret. Indeed, the Labour party supported those measures and, in some cases, called for us to go further. Nor were the difficult decisions we had to take to pay for them a secret either. When we had to increase borrowing, increase tax and reduce spending plans in the autumn statement of 2022, Labour did not oppose us.

    Like all Chancellors, she faces fiscal challenges: welcome to the job. But that job is a whole lot easier because, faced with an economic crisis two years ago, Conservatives took decisions that her predecessor Labour Government ducked completely after the financial crisis. That is why she has a deficit of 4.4% this year compared with 10.3% left behind for the Conservatives in 2010. She did not just compare her inheritance to 2010; she claimed to have the worst inheritance since the second world war. Is she really saying that she faces conditions worse than Geoffrey Howe in 1979, with a winter of discontent, stagflation, an 83% top rate of tax and a Labour Government who went with a begging bowl to be bailed out by the IMF? The Chancellor knows perfectly well that that claim is nonsense, otherwise why, in her first week, would she announce £7.3 billion of spending on her national wealth fund, without a spending review, a budget or any external validation from the OBR? As Paul Johnson of the Institute for Fiscal Studies says, thanks to the OBR the nation’s books are “wide open” and “fully transparent”, so pretending things are worse than expected “really won’t wash.” As she establishes her reputation, it is surely unwise to base her big central argument on a claim so patently ridiculous.

    But we all know exactly why the Chancellor is doing it. She wants to lay the ground for tax rises she has been planning all along, which leads to two major concerns. First, she says her No. 1 mission is growth, but all around the world, evidence suggests countries with higher taxes tend to grow more slowly. Lower taxes, when funded properly, boost growth, as we saw with full expensing and the national insurance cuts last year, both of which the OBR confirmed add to our GDP. However, keeping taxes down is hard work.

    I saw the numbers the Chancellor has seen just a few weeks ago, and the official advice was clear: with public sector pay restraint, productivity plans such as those we announced in the Budget, and welfare reform, it is perfectly possible to balance the books without tax rises. It is not easy—government never is—but not impossible. Yet all those three things—pay restraint, productivity improvements and welfare reform—were glaringly omitted from the King’s Speech. Instead, she has chosen an easier path: what Labour party sources told The Guardian was a “doctor’s mandate” to raise taxes.

    The Chancellor has ruled out raising income tax, national insurance and VAT, but she should not think for one second that other tax rises will not impact working people. Capital gains tax destroys the pensions people build up over their lifetimes; business tax rises are passed on to customers, leading to higher bills; and taxes on banks and energy companies lead to fewer companies operating in the UK, a lower tax take and less money for public services such as the NHS.

    That is the biggest contradiction in the new programme —a Government who say they want the fastest growth in the G7 but, in the very same breath, plan tax rises that will make that growth harder, if not impossible, to achieve. Even if such an approach were misconceived, it is none the less a legitimate choice for a governing party. What is not acceptable is, just 18 days after the election, to be laying the ground for tax rises after the Chancellor promised us 50 times in the election campaign that she had no plans to raise them. Every Labour Government in history have raised taxes and raised spending. If she wanted to do the same, she should have had the courage to make the case for that before the election. Instead, she is softening us up for a colossal U-turn that will lead to lower growth, less money for public services and massive public anger, which is why I commend to the House the amendment in the Opposition’s name.

  • Daisy Cooper – 2024 Speech on CrowdStrike – IT Outage

    Daisy Cooper – 2024 Speech on CrowdStrike – IT Outage

    The speech made by Daisy Cooper, the Liberal Democrat MP for St. Albans, in the House of Commons on 22 July 2024.

    This is my first opportunity to welcome Ministers to their places. I thank the Minister for advance sight of the statement. I want to focus on the impact on the NHS. My thanks, and I am sure those of the entire House, go to all NHS staff who have been scrambling to deal with urgent inquiries from distressed patients.

    I wonder if I might press Ministers for assurances on two patient groups who need time-critical care. First, some patients require blood test results before they can commence urgent treatment or have operations. Are there any assurances on the attention that they will be given by the NHS, both now and in any future scenarios? Secondly, there are patients at great risk of becoming extremely ill from getting covid. Since the previous Government scrapped the covid medicines delivery unit, many vulnerable patients have been struggling to get the anti-virals that they need from their GP in time. That situation is made much worse when this kind of disruption happens. Can the hon. Lady provide assurances about any attention that NHS England has given to those two patient cohorts? If not, is she willing to meet me to discuss what we might do in future?

    Ellie Reeves

    I thank the hon. Member for her question highlighting the issues facing vulnerable patients. I am pleased to report that there was no reported impact on 111 or 999 services, and that patients were able to access emergency care. The majority of the impact on GP services was in accessing patient records, GP appointments and prescriptions. Patients who could not access GP appointments were able to attend urgent care services, and GPs were able to issue paper prescriptions. However, I will pass on the hon. Lady’s concerns to my colleagues in the Department of Health and Social Care, because they are incredibly important issues and we need to ensure that vulnerable patients are protected, going forwards.

  • Oliver Dowden – 2024 Speech on CrowdStrike – IT Outage

    Oliver Dowden – 2024 Speech on CrowdStrike – IT Outage

    The speech made by Oliver Dowden, the Conservative MP for Hertsmere, in the House of Commons on 22 July 2024.

    May I begin by welcoming the hon. Lady to her role and thanking her for advance sight of the statement? In that role I know she will be supported by a dedicated team of civil servants, who represent the very best of public service. I have no doubt that they will serve her as well as they did me.

    The hon. Lady will be aware of the enormous challenges facing this Government and those around the world in relation to cyber-security. As I warned when I was the responsible Minister, threats to public services and critical national infrastructure come from a range of challenges, from hostile state actors to human error and design flaws. Last week we saw those challenges vividly brought to life. Following the corrupted antivirus update by CrowdStrike on Friday, 8.5 million Microsoft devices globally were rendered unusable. That left airports disrupted, patient records temporarily lost and GPs unable to access important patient data, creating significant backlogs. That is more than an inconvenience.

    I pay tribute to all those working in our public services for the efforts they undertook over the weekend to restore those services, and to the work of dedicated cyber specialists across Government, including in the National Cyber Security Centre. In government we undertook a wide range of measures to enhance the nation’s cyber-security: creating the National Cyber Security Centre, introducing secure by design, setting cyber-resilience targets, launching GovAssure and transforming the oversight of governmental cyber-security.

    I note, as the hon. Lady said, that the Government intend to build on that progress by bringing forward a cyber-security and resilience Bill. Will she therefore outline the timetable for the Bill, and will the Government consider mandatory cyber-security targets for the UK public sector? Are the Government considering obligations to ensure that infrastructure is designed to be resilient against common cause problems, such as this one? What steps are being taken to enhance cyber-security in the devolved Administrations and in parts of the public sector such as the NHS, which are operationally independent?

    Specifically in relation to this incident, what assessment has been made of the prevalence of CrowdStrike within critical national infrastructure? What further reassurance can the Government give in relation to the timetable for full recovery of key systems and data? In particular, can the Minister assure employees that this month’s payroll will not be adversely affected?

    Britain’s cyber industry is world leading. Cyber-security now employs more than 60,000 people and brings in nearly £12 billion-worth of revenue annually. This transformation was in part due to our £5.3 billion investment, which launched the country’s first national cyber-security strategy. I therefore urge the Government—I see the Chancellor in her place—to continue such investment.

    Incidents such as that of CrowdStrike should not deter us from the path of progress. We must embrace digitalisation and the huge improvements to public services that it offers. The adoption of artificial intelligence across Government is the closest thing we have to a silver bullet for public sector productivity. However, if we are to command public confidence, people must be assured that technology is safe, secure and reliable. Such incidents demonstrate how reliant the Government and public services are on large technology companies, and how much responsibility they have for the services that have become critical to people’s lives and livelihoods. That is why, in government, I called for us to work more closely with leading technology firms to address these shared challenges. The best solution is partnership. To that end, what further engagement will the Minister undertake with Microsoft, CrowdStrike and the wider sector to ensure that there is no such recurrence?

    The task for us all is to build on existing progress that has transformed Britian’s cyber defences, and to enhance protections for British families, businesses and the very heart of Government. In that mission, the Government can rely on the support of the Opposition.

    Ellie Reeves

    I thank the shadow Minister for his contribution and his questions. In particular, I echo the thanks to all those in Departments across the civil service who were involved in dealing with the outage last Friday and in mitigating its effects. I set out in my statement that our cyber-security and resilience Bill, which was included in the King’s Speech, will strengthen our defences and ensure that more digital services are protected. That is a priority for this Government. The Bill will look at expanding the remit of regulation, putting regulators on a stronger footing and increasing reporting requirements, so that the Government can build a better picture of cyber-threats. We will consider the implications of Friday’s incident as we develop that legislation, but rest assured that we are working across Government to ensure resilience.

    As the Chancellor of the Duchy of Lancaster said in his statement on the covid inquiry module 1 report, he will lead a review assessing our national resilience to the full range of risks that the UK faces, including cyber-risks.

  • Ellie Reeves – 2024 Statement on CrowdStrike – IT Outage

    Ellie Reeves – 2024 Statement on CrowdStrike – IT Outage

    The statement made by Ellie Reeves, the Minister Without Portfolio, in the House of Commons on 22 July 2024.

    On Friday 19 July, we saw a CrowdStrike software update on Microsoft systems result in a major global IT outage. It caused significant impacts around the world. Impacts were seen in the transport sector, with flights grounded in Europe and the US, and delays and cancellations here in the UK. Live train departure boards were impacted during the morning rush hour, and some media outlets lost the ability to provide live coverage. The outage caused substantial inconvenience for passengers hoping to travel for the summer holiday getaway on the busiest travel weekend of the year. Airports and airlines across the UK had measures in place to maintain safe operations, support passenger welfare, extend operating hours and deploy additional staff to support late-running operations and keep people moving where possible. As with all incidents, the sector will review its response and implement any learnings.

    More concerningly, large parts of the local UK healthcare system lost access to test results and appointment information, affecting mostly GP services. Tried and tested NHS contingency plans were enacted and services are expected to be operating at full capacity in the next few days. Small businesses without dedicated IT support systems were heavily impacted due to disruption to card-only payment systems and ATMs, with many resorting to operate cash-only while firms worked to fix their systems. Many firms were able to get back online quickly and the remainder are expected to restore operations this week.

    Officials from the National Cyber Security Centre quickly established that the outages were not the result of a security incident or malicious cyber-activity. The cause was instead identified to be a flawed CrowdStrike software update that caused Windows machines to crash.

    On Friday morning, CrowdStrike issued guidance on how to solve the problem, giving users a manual fix for each affected device or system. I now believe that CrowdStrike is in the process of implementing an automated update, which can be applied remotely and should therefore speed up recovery. However, there are still residual impacts from the failed update, and it is important that we continue to monitor the situation and the longer-term impacts to UK sectors and secondary impacts from international disruption.

    Ever since the incident occurred, the Government have worked closely with both Microsoft and CrowdStrike. My Cabinet Office officials have been leading co-ordination of the Government response across all impacted sectors of the economy. That included close monitoring of affected public services to ensure that business continuity plans were enacted and services were supported as they came back online. Two Cobra senior officials meetings were also convened on Friday to co-ordinate the response, and officials from across His Majesty’s Government met over the weekend to continuously monitor the impacts and the recovery process. I am pleased to say that Government services and the online services that the Government provide were and remain largely unaffected. My colleagues including the Chancellor of the Duchy of Lancaster, the Health Secretary and the Transport Secretary attended briefings with officials throughout, and the Prime Minister was kept informed.

    The majority of the sectors that were impacted have now mostly recovered. The UK transport system—aviation, rail, road and maritime—is running normally. NHS staff worked hard over the course of Friday and the weekend to quickly apply the fixes required, and my colleagues in the Department for Health and Social Care have confirmed that systems are now back online, including for GPs. Their advice is that patients should continue to attend their appointments unless told not to. There may still be some delays, and GPs will need to rebook appointments that could not be made during the IT outage. The public should continue to contact their GPs in the normal way.

    As IT systems are complex, we can expect that minor disruption will continue in some areas while systems continue to recover, but my officials expect those to be resolved in the next couple of days. I would like to thank everyone who has worked so hard to get systems up and running again, and all staff who have worked tirelessly to support individuals impacted by the outage.

    Following this incident, the Cabinet Office will work with the National Cyber Security Centre and other partners across Government to review the lessons learned. The Central Digital and Data Office will work with the NCSC to implement any improvements to the existing response plans to cover both technical resilience features as well as cyber. The Cobra unit will work with Departments to support their processes for establishing how the organisations and sectors they represent manage the impacts of the outage and what lessons have been learnt.

    As soon as the Government were elected, we took immediate steps to begin legislating to protect public services and the third-party services they use. Our cyber-security and resilience Bill, included in the King’s Speech, will strengthen our defences and ensure that more essential digital services than ever before are protected. For example, it will look at expanding the remit of the existing regulation, putting regulators on a stronger footing and increasing reporting requirements to build a better picture in Government of cyber threats. Technology failures can be as disruptive as cyber-attacks, and the move to create the centre for digital government within the Department for Science, Innovation and Technology is aimed at creating a more resilient digital public sector.

    What this incident shows is how dependent the modern world is on complex and interconnected IT systems and how essential preparedness for such events is, including business continuity planning. Notwithstanding the immense frustration and inconvenience that the outage has caused, I am pleased to see that effective contingency plans mitigated the very serious impacts that the outage could have had. I am pleased also that there is to be a comprehensive process to identify the lessons from this episode. I hope that they will lead to improvements that both help prevent similar incidents and further improve our resilience to system outages and the impacts they can have. In that spirit, I commend the statement to the House.

  • James Cleverly – 2024 Speech on Border Security and Asylum

    James Cleverly – 2024 Speech on Border Security and Asylum

    The speech made by James Cleverley, the Shadow Home Security, in the House of Commons on 22 July 2024.

    Thank you very much, Mr Speaker. I welcome you back to your place, on my first opportunity to do so. In my time as Home Secretary and, before that, Foreign Secretary, you were very kind about my minor indiscretions at the Dispatch Box, my late deployment of statements and my slight overruns. You have always been very kind to my family in sometimes quite trying circumstances, which I very much appreciate.

    I also take this opportunity to congratulate the right hon. Member for Pontefract, Castleford and Knottingley (Yvette Cooper) on her appointment as Home Secretary. It is a challenging but incredibly rewarding job and, because the nation’s security is now very much in her and her Ministers’ hands, I genuinely wish her all success in everything she is looking to do.

    The right hon. Lady inherits a dedicated team of Home Office civil servants who will help her to keep the country safe and secure. They helped me when I was in her position and, although it is disorderly to recognise their presence, if I were to wave my hand vaguely in their direction, I might take the opportunity to thank my previous private office civil servants.

    My notes say that I want to thank the Home Secretary and her team for advance sight of her statement, but I will put a line through that.

    The Labour party, and indeed the Home Secretary, likes to talk tough on border security, but today’s statement, despite all the hyperbole and the made-up numbers, is basically an admission of what we knew all along, which is that the Labour party has scrapped the Rwanda partnership on ideological grounds, removing a deterrent that the National Crime Agency said we needed.

    The level of discourtesy directed towards the people and Government of Rwanda is quite breathtaking. To have them read about this decision in the papers before anyone from the UK Government had the good grace to formally notify them is an error, and no one in this House believes for a moment that this level of discourtesy would have happened had the partnership been with a European country.

    Labour has given an effective amnesty to thousands of asylum seekers who were banned under Conservative plans. Labour’s plans amount to doing less than the Conservatives were doing when we were in government, merely changing the signs above a few desks in the Home Office with its so-called border security command and returns unit. Before the election, the right hon. Lady said that she would create a returns unit, and now the narrative is that she will redeploy some staff—not increase the number of staff, but redeploy some staff—which shows that the returns function already exists.

    There is no safe third country to which to return people who cannot be returned home, so where will the right hon. Lady send people who come here from countries like Afghanistan, Iran and Syria? Has she started negotiating returns agreements with the Taliban, the ayatollahs of Iran or Assad in Syria? If she is not going to send to Rwanda anyone who arrives here on a small boat, to which local authorities will she send them? We were closing hotels when I was in government, so I wonder which local authorities will receive those asylum seekers. If not Rwanda, will it be Rochdale, Romford or Richmond? Most importantly, can the right hon. Lady now confirm that people who arrive here illegally in a small boat will be able to claim asylum? Finally, how long after the right hon. Lady briefed the media that she is scrapping the Rwanda partnership did she have the courtesy to speak directly with the Rwandan Government?

    It is because we now have no deterrent that nobody wants to head her new so-called border security command. Neil Basu, a former senior police officer for whom I have huge respect, was Labour’s No. 1 choice, and he has ruled himself out. We now learn that General Stuart Skeates, a highly respected former general in the British Army, who was, in large part, responsible for delivering the Albania deal, which cut small boat arrivals from that country by 90%, has resigned from his position as director general for strategic operations. To misquote Oscar Wilde, “to lose one border commander could be seen as a misfortune; to lose two looks like carelessness”—perhaps even incompetence. I notice that the new job advert—it is available online for those who are thinking of applying—for Labour’s border security command says that the role is not located in Kent, where the channel is, but is flexible from Belfast, Bristol, Cardiff, Durham, Glasgow, Liverpool or Manchester, none of which, the last time I checked, are anywhere near the English channel.

    The reality is that everybody knows, including the people smugglers, that the small boat problem is going to get worse—indeed, has already got worse under Labour—because there is no deterrent. People are being sold a lie when they are being smuggled into this country, across one of the busiest shipping lanes. We need to stop them. Too many lives have already been lost. Sadly, six more have been lost in the channel in the last few weeks, and our hearts go out to them and their loved ones. We disagree on many things, but we can agree that we need to put an end to this evil trade. Sadly, the initial decisions made by her Government have made the problem worse, not better.

    Yvette Cooper

    I welcome the shadow Home Secretary’s words about the dedication of Home Office officials and about the importance of work on national security. As he knows, when I was shadow Secretary of State, I always worked with him and supported him around national security issues. I know he will do the same and I welcome him to his shadow post. I presume what we heard was the first of the Conservative leadership contest speeches.

    I will respond to some of the things the shadow Home Secretary said. We need to be clear about what we have inherited from him and his party. Under his party, we have had the highest level of spring crossings ever. Gangs have been left to wreak havoc, not just along the French coast but across our border, through our country and back through Europe. Asylum support costs are set to rise to £30 billion to £40 billion over the next four years as a result of his and his party’s decisions.

    As for the idea of deterrence, I am sorry but four volunteers being sent to Rwanda is not a deterrent to anyone for anything at all. The idea that he would spend £10 billion on this fantasy, this fiction, this gimmick rather than ever do the hard graft—£700 million has already been spent on sending just four volunteers in two and a half years. We have often warned that, frankly, it would be cheaper to put them up in the Paris Ritz. As it turns out, it would have been cheaper to buy the Paris Ritz.

    As for the amnesty, I do not know if the right hon. Gentleman has ever understood the Illegal Migration Act 2023, which he voted for and he inherited from his predecessors. He asks if people who arrive illegally can claim asylum—that is exactly what happens under section 9 of that Act. They can all claim asylum, enter the asylum system and be entitled to asylum support. That is what happens in the system, which we have inherited, that he has presided over and run since he became Home Secretary. The problem is that people enter the asylum system but never leave. He did not bring in operational arrangements to try to take decisions properly. His Home Office effectively stopped taking the majority of asylum decisions in May. Perhaps he did not know that, but that is what happened in his Home Office. This party and this Government do not believe in amnesties. We think that the rules need to be respected and enforced. His party is the one that has given an effective amnesty to people who can end up staying in the asylum system forever. We believe that the rules should be enforced. The problem is that that is what the shadow Home Secretary believes too. He does not believe any of the stuff that he has just said. He is only saying it for his Tory leadership contest; he is just too weak to tell his party the truth. He thought that the whole policy on Rwanda was “batshit” and then he went out to bat for it. It is just not serious.

  • Yvette Cooper – 2024 Statement on Border Security and Asylum

    Yvette Cooper – 2024 Statement on Border Security and Asylum

    The statement made by Yvette Cooper, the Home Secretary, in the House of Commons on 22 July 2024.

    May I thank you, Mr Speaker, for standing up for the Opposition Front Benchers, as I know you have often done for me in the past? I apologise to the shadow Home Secretary for the delay in the arrival of the statement.

    Most people in the United Kingdom want to see strong border security, with a properly controlled and managed asylum system where our country does its bit, alongside others, to help those who have fled persecution, but where rules are properly respected and enforced so that those with no right to be here are swiftly removed. At the moment, we have none of those things. Border security is being undermined by criminal smuggler gangs, and the asylum system is in chaos. Tragically, 19 lives have been lost in the channel so far this year, including children. No one should be making these perilous small boat journeys.

    Criminal gangs have been allowed to take hold along our border, and they are making huge profit from undermining our border security and putting lives at risk. They should not be able to get away with it. Crossings in the first half of 2024 are up by 10% on last year—the number is going up, instead of coming down. At the same time, the asylum backlog is getting worse, as decision making in the Home Office has dropped. Home Office spending on asylum support has increased sevenfold in the space of just three years. This cannot go on. Since my appointment two weeks ago, I have reviewed the policies, programmes and legislation that we have inherited from our predecessors, and I have been shocked by what I have found. Not only are there already serious problems; on current policies, the chaos and costs are likely to get worse.

    On our border security, it is clear that the security and enforcement arrangements we have inherited are too weak. Criminal gang networks are operating with impunity along our border, across the continent and beyond, and across the UK too. Action between Britain and France in the channel has improved, and is preventing some boat crossings. The work of the small boats operational command in the channel is important and will continue, but we need to go much further. We should be taking far more action upstream, long before the boats ever reach the French coast. Co-operation with Europol and other European police forces and prosecutors is far too limited, and enforcement against exploitation and trafficking in the UK is far too weak. Information sharing with our European neighbours has reduced, rather than increased. As a result of these weak arrangements, I am extremely concerned that the high levels of dangerous crossings that we have inherited are likely to persist throughout the summer.

    Let me turn to the Rwanda migration and economic development partnership. Two and a half years after the previous Government launched it, I can report that it has already cost the British taxpayer £700 million—in order to send just four volunteers. That includes £290 million on payments to Rwanda and the costs of chartering flights that never took off, detaining hundreds of people and then releasing them, and paying for more than 1,000 civil servants to work on the scheme—for a scheme to send four people. It is the most shocking waste of taxpayers’ money I have ever seen.

    Looking forward, the costs are set to get worse. Even if the scheme had ever got going, it is clear that it would have covered only a minority of arrivals, yet a substantial portion of future costs were fixed costs—for example, the annual direct payments to Rwanda, the contracts for escorts, the staffing in the Home Office, the detention and reception centres, and more. The taxpayer would have still had to pay out, no matter how few people were relocated. Most shockingly of all, over the six years of the migration and economic development partnership forecast, the previous Government had planned to spend over £10 billion of taxpayers’ money on the scheme. They did not tell Parliament that. I thank the Rwandan Government for working with the UK in good faith, because the failure of this policy lies with the previous UK Government. It has been a costly con, and the taxpayer has had to pay the price.

    I turn to the Illegal Migration Act 2023, which has been in place for a year. We were told that it would stop the boats, but it has clearly failed. The legal contradictions in the Act are so great that they make it unworkable; indeed, 12 months on, the central duty has not even been enacted. It is also costing the taxpayer billions of pounds. Under section 9 of the Act, people who arrive in the UK can claim asylum and get asylum accommodation. However, under section 30, if they arrived after March 2023 and meet key conditions in the Act, no decision can be taken on their case; they just stay in the asylum system. Even if they have come here unlawfully for economic reasons and should be returned to their home country, they will not be, because the law does not work. Only a small minority might ever have been sent to Rwanda; everyone else stays indefinitely in taxpayer-funded accommodation and support.

    The Home Office estimates that around 40% of asylum cases since March 2023 should be covered by those Illegal Migration Act conditions. The remaining 60%, under the previous Government’s policy, should still have been processed and cleared in the normal way. However, even though previous Ministers introduced this new law 12 months ago, they did not ever introduce an effective operational way for the Home Office to distinguish between the cases covered by the Illegal Migration Act and the other cases where decisions should continue—that is, between the 40% and the 60%. As a result, decisions cannot be taken on any of them.

    I have been shocked to discover that the Home Office has effectively stopped making the majority of asylum decisions. Thousands of asylum caseworkers cannot do their proper job. As a result, the backlog of asylum cases is now going up. This is the most extraordinary policy I have ever seen. We have inherited asylum “Hotel California”—people arrive in the asylum system and they never leave. The previous Government’s policy was effectively an amnesty, and that is the wrong thing to do. It is not just bad policy, it is also completely unaffordable. The cost of this indefinitely rising asylum backlog in hotel and accommodation support bills is astronomical. The potential costs of asylum support over the next four years if we continue down this track could be an eye-watering £30 billion to £40 billion. That is double the annual police budget for England and Wales.

    This newly elected Government are not prepared to let this chaos continue, so let me turn to the action we are urgently taking to restore some grip to the system, to tackle the chaos and to get costs down. First, I have informed the Rwandan Government that we will be ending the migration and economic development partnership. We will save £220 million on further direct payments to Rwanda over the next few years and we will immediately save up to £750 million that had been put aside by the previous Government to cover the MEDP this year.

    Secondly, we will invest some of the saved money from the migration partnership into a new border security command instead. It will bring together the work of the Border Force, the National Crime Agency, the small boats operational command and intelligence and security officers. The recruitment has begun for a new commander and we will put in place additional cross-border officers, investigators, prosecutors, and intelligence and security officers with the new counter-terror-style powers against organised immigration crime announced in the King’s Speech last week. We are immediately increasing UK officers’ involvement in Europol and the European Migrant Smuggling Centre.

    Thirdly, we will replace the Rwanda migration partnership with a serious returns and enforcement programme. We have immediately replaced the flight planning for Rwanda with actual flights to return people who have no right to stay to their home countries instead. We are immediately redeploying Home Office staff away from the failed Rwanda partnership and into returns and enforcement, to reverse the collapse in removals that has taken place since 2010. I have tasked the immigration enforcement team with intensifying enforcement activity this summer, targeting illegal working across high-risk sectors.

    Fourthly, we will end the asylum chaos and start taking asylum decisions again so that we can clear the backlog and end asylum hotels. The new border security, asylum and immigration Bill announced in the King’s Speech will bring in new replacement arrangements, including fast-track decisions and returns to safe countries. In the meantime, I am laying a statutory instrument that ends the retrospective nature of the Illegal Migration Act provisions, so that the Home Office can immediately start clearing cases from after March 2023. Making this one simple change will save the taxpayer an estimated £7 billion over the next 10 years. Fifthly, as the Prime Minister has just set out, we will work closely with our European neighbours to tackle the upstream causes of migration, including through the Rome process.

    This country will always do our bit alongside others to help those fleeing war and persecution, but we need a proper system where rules are enforced. There are no quick fixes to the chaos created over the last 14 years. It will take time to clear the asylum backlog, to bring costs down and to get new enforcement in place to strengthen our borders and prevent dangerous boat crossings, but there is no alternative to serious hard graft. We cannot waste any more time or money on gimmicks. The country voted for change, and that means it is time for a sensible, serious plan. I commend this statement to the House.