Tag: Iain Duncan Smith

  • Iain Duncan Smith – 2002 Speech to the Association of Chief Executives of Voluntary Organisations

    Iain Duncan Smith – 2002 Speech to the Association of Chief Executives of Voluntary Organisations

    The speech made by Iain Duncan Smith, the then Leader of the Opposition, on 13 June 2002.

    I am very grateful to Stephen Bubb and the Association of Chief Executives of Voluntary Organisations for the invitation to today’s conference.

    Members of ACEVO greatly strengthen our society, particularly at the local level, by enabling groups of people with a common vision to come together to work for a common cause.

    And because you tackle the causes as well as the consequences of social problems you reach vulnerable people who have often been failed by conventional approaches.

    Gathered in this room are a variety of organisations that serve diverse communities of people all over Britain.

    Leonard Cheshire supports and enables 19,000 people with disabilities in Britain.

    The hospice movement provides 3,215 beds for very sick and terminally-ill people.

    Victim Support offers help to over one million people whose lives have been struck by crime.

    Prison Fellowship equips and supports 2,000 volunteer visitors throughout Britain’s 136 prisons.

    This week is National Carers’ Week. This morning I visited the Princess Royal Trust Carers’ Centre in Hammersmith and Fulham, which provides support for those who care for relatives and friends when they can no longer look after themselves.

    Every 5th household in this country includes at least one carer. There are some seven million adults carers in Britain today. I watched my mother care for my dying father and I know the selfless dedication born out of love and obligation that is the cornerstone of so many families in this country.

    Informal care is the most effective and least expensive form of care there is. However it places an extraordinary amount of strain on those who give it. The voluntary support carers receive often makes the difference between a heavy burden and an intolerable one. I pay tribute to the work that they do and the support that you give them.

    Of course, there is also a need for paid professional help, especially where vulnerable people have no friends or relations to look after them. Here the state can step in with support for people who can’t afford this help themselves. But that doesn’t mean the state has to organise and provide the care itself, or that it does a very good job when it tries to.

    Last month a report from the Social Services Inspectorate made clear that many local authorities were failing to provide adequate levels of care to vulnerable people. I was struck by the testimony of one charity worker in the West Midlands:

    ‘Elderly people with mobility problems cannot get even the most basic help. If they want a grab rail for their toilet or bath, they go to social services for an assessment – which takes months… When we complain, the politicians blame it on the officers and vice versa.’

    This is illustrated by the case of a 71-year-old man who has not been able to have a bath or a shower since suffering a stroke in July 1997. He desperately needs a downstairs shower, but the council has said that it may be another three years before one is installed. As he said:

    ‘It is about my dignity. They don’t understand how traumatic it is to have a stroke, to not be able to go out for a walk. They don’t know how it feels not to be able to bathe. I feel absolutely terrible and I really feel as if I have been let down.’

    Some will say that the problem is resources. But it is not about resources alone. There is a huge variation in performance between different councils. As the inspector’s report said:

    ‘People are fitted to services, rather than services to people.’

    I believe that charities and the voluntary sector have so much to teach us about fitting services to people. Of course, many others have come to the same conclusion, which is why the voluntary sector has been called upon to play a bigger role in the public services. But charities must not be used to prop up crumbling state structures. And neither should vulnerable people have to wait and hope for the failing state to find the right partners from the voluntary sector.

    Rather, the true duty of the state is to help vulnerable people achieve dignity and this is best done by ensuring that they get help from those that understand their needs best. And very often that will be a charity or a community group or some other non-state body. It is vital that we establish a direct relationship between what people want and the support the voluntary sector gets from the public purse.

    People will benefit from more responsive public services, but the voluntary sector will also benefit. They will be held accountable by the people they help instead of by Whitehall. This is public funding with a human face that ensures freedom from political interference and a closer connection with the communities they serve.

    That is why an evolving partnership with the voluntary sector will be a high priority for the Conservative party.

    It will be vital for effective public service reform. It also lies at the core of the commitment which I set out at the Conservatives’ Harrogate conference to address the needs of vulnerable people within society.

    Of course you are used to be courted by politicians. We are meeting at a time when the boundaries between the public, private and voluntary sectors are becoming blurred beyond recognition.

    At first glance, this presents charities with unprecedented opportunities. It offers you the chance to expand your work, to gain access to policymaking and to secure new sources of income.

    But on deeper examination these opportunities present their own problems. If charities increasingly rely on government for their influence, their authority and their funding, at what point do they cease to act as agents for change and constancy, and start to become just another agency of the state?

    To improve the quality and the responsiveness of our public services we have to be more flexible about those organisations we use to deliver them. That is one very obvious lesson I have learned from travelling around Europe and America studying those countries who run better systems of healthcare and education than we do.

    But we must never lose sight of the fact that if we want to help the most vulnerable people in our society, then we also have to strengthen society around them and that means supporting institutions and groups whose reach extends beyond the state.

    I applaud the new spirit of professionalism in the charitable sector that you embody, but that should never lead to the professionalisation of voluntary impulses.

    To do so risks eroding the independence of charities and undermining the virtues of self-help, mutual obligation and social engagement. People must not believe that their obligations to neighbours in need begin and end with the payment of taxes.

    People give time and money to volunteering for any number of reasons. They may want others to think well of them, or to contribute to the well-being of those less fortunate than themselves. These sentiments make us who we are.

    That is why the expression of compassion through spontaneous co-operation is as old as society itself.

    It has survived the 20th century struggles between socialism and capitalism and the battle between the public and private sectors for the control over the economy.

    Now it must flourish in the 21st century as we seek to wrestle with the limitations of state power in tackling some of our most intractable social problems.

    This, I think, is where the Government and the Opposition part company. Both main parties talk about civil society, the need to replenish social capital and an enhanced role for the voluntary sector.

    But for my part we do so from a belief that the voluntary sector should not just be another branch office of central government.

    For us the sector is part of new political settlement. One which stresses the local over the central, diversity over uniformity, and innovation over control.

    Labour came into power offering the voluntary sector a new partnership. They were promised unprecedented access to Whitehall, a voice in decision-making and access to a panoply of government grants.

    But in return they were often required to submit themselves to target-setting, auditing and performance indicators that have become the defining feature of the way this Government runs the public sector.

    Too many voluntary groups fear becoming institutionalised. They devote more and more of their time to applying for grants and writing reports and less and less time to finding new ways of helping people.

    This Government’s bear-hug is as expensive as it is suffocating. The bureaucracy and the compliance costs risk excluding the smallest charities who are the most local and often the most innovative in meeting the needs of their communities.

    As Conservatives, we see things differently. Certainly Government has a duty to account for the way it spends its money and there are certain minimum standards which all organisations must adhere to.

    But the potential of the voluntary sector lies in what it alone can achieve.

    Voluntary groups can operate on a human scale, they are often run by members of the same communities they serve, they can demand more of the people they are trying to help.

    The lives they touch and change are not to be measured by statistics or read in annual reports, instead they are measured by the strength of our communities and they are written in faces of the people and the families they help.

    These are the things that give the voluntary sector its power. It is why charities reach the parts of our society that government has never reached in the half century since the universal welfare state was founded.

    If we are to tap into that power, we are going to have trust people; trust charities and the voluntary sector to do their job, not emasculate them with a series of contracts and regulations in the name of partnership.

    This is not a rallying cry for the voluntary sector to provide public services on the cheap: responsibility must be matched by resources and by results.

    All told, the voluntary sector receives a public income of more than £5 billion a year from central and local government, from the European Union and from the lottery.

    But currently this money comes at the price of the strings that politicians attach to it.

    You only have to look at the problems of residential care homes. Many face closure because of excessive regulation, disrupting the lives of vulnerable people.

    The rules governing the European Social Fund are drawn so tightly that voluntary groups are unable to offer assistance to those who fall just outside its rigidly-defined geographical boundaries.

    Muslim groups face discrimination if they bid for money as religious rather than cultural organisations. Christian and other faith-based groups sometimes face discrimination simply because of their faith.

    We have to find ways of involving the sector in transforming our public services without compromising its independence and integrity.

    That is going to mean fundamentally rethinking the way public money reaches the voluntary sector.

    Earlier this week, while I was in Washington DC I visited the Unique Learning Center. It looks after 40 children from broken homes whose parents are addicted to drugs or in prison. It coaches them through school, dealing with teachers and providing a place they can go to after school to do homework or play sport.

    The Center offers children a haven from disruptive neighbourhoods. It teaches children of the link between work and achievement and steers them away from the culture of instant gratification and criminality.

    Currently they receive no money from the central government for fear of interference. But the Bush Administration is backing the CARE Act. This would allow faith-based organisations to bid for Federal funds on a level playing field with non-religious organisations. It would also create a special fund that community-based organisations could bid for.

    We need to learn from the American experience. Michael Howard and I are examining carefully how we can reform our tax laws in a way that will help the voluntary sector.

    As things stand today, funding passes through the hands of too many people who have done nothing to produce it and who lack the expertise to spend it wisely.

    Voluntary groups aspire to serve real people and their real needs.

    But the current funding system gets in the way. It encourages mission creep; suffocates innovation; and it produces uniformity.

    Centralised and politicised funding systems produce grey uniformity.

    Government rarely tolerates alternative opinions. Charities with the temerity to challenge prevailing orthodoxies about drugs or marriage can suffer discrimination. The result is a one-dimensional approach to social problems which can never meet the diverse needs and beliefs of communities throughout Britain.

    The public has a right to demand that the money raised in its name goes to ensuring better access to higher quality services. The Government has duty to tell them where their money is going. But ultimately all governments are judged by results. Elaborate audit trails are no substitute for achievement.

    And as we know from every other walk of life, from every other country whose standards of public services exceed our own, these achievements are greatest when those closest to the communities they serve are given the power to get on with their jobs.

    To do this, we have to address a number of questions.

    How can we reform funding so that charities can stay loyal to their fundamental missions?

    How do we ensure that higher-risk, but more innovative projects, get funds?

    How do we make sure that small neighbourhood-based charities get support alongside larger, nationally based ones?

    The answers will come from a mix of innovative approaches. The NCVO’s interest in local charitable endowments is worthy of consideration.

    Some of the ideas we will look at would extend existing practice, some would depart from it.

    I would be grateful for your views in this search for a more democratic, more diverse and more devolved voluntary sector.

    We will have a robust and constructive debate with the Government as it develops its own responses to some of the issues I have discussed today.

    If good decisions come out of the voluntary sector reviews being carried out by the Treasury and the Performance and Innovation Unit, we will support them.

    But when the Government damages the voluntary sector, as it did by cutting your investment income through the ACT changes or imposing National Insurance increases on a sector which needs to employ more people on tight budgets, we will not hesitate to say they are wrong.

    Nor are we concerned to help only the voluntary sector. Families, community networks and places of worship must also play their part.

    If our society is serious about tackling some of its most deeply-rooted problems, then we must start by taking society seriously.”

    It is often those institutions that lie beyond the reach of the state who have the firmest grasp of what needs to be done. They bring a human touch to the healing of social ills that has eluded both material prosperity and the universal welfare state.

    Government has a role in supporting the voluntary sector and it should carry out that role actively, but it should not try to run your sector for you. It must give you the room to breathe and the space to work.

    That is the balance the Conservative Party will seek to strike in the years ahead.

  • Iain Duncan Smith – 2002 Speech on the Mentally Ill

    Iain Duncan Smith – 2002 Speech on the Mentally Ill

    The speech made by Iain Duncan Smith, the then Leader of the Opposition, at the Savoy in London on 25 June 2002.

    Much has happened since I spoke to you nearly a year ago at last year’s annual lunch.

    The Two Cities have been at the forefront of the national outpouring of affection and respect for the Queen during her Golden Jubilee celebrations.

    In May’s Elections Westminster City Council once again showed how successful Conservatives can be when we deliver high quality, good value local services. Simon Milton and his team have certainly played their part in our local government revival in London.

    And in the House of Commons your new MP, Mark Field, has marked himself out as a leading member of that new generation of Conservative MPs that I will make it my business to lead into Government.

    Twelve months that would have sounded fanciful. We had just suffered our second devastating defeat in four years.

    Yet today, our Party is more disciplined and more united than it has been for a decade.

    And Labour, seemingly impregnable back then, have been caught in their own web of intrigue and spin which has seen them lose the trust of the British people.

    This is all a very long away from the new dawn in British politics that Tony Blair promised on taking office in 1997 or from the promises he made at the last Election.

    How has a Prime Minister who said he would follow the People’s Priorities come to view those he claims to represent with such contempt?

    Integrity and politics

    The relationship between government and the governed is the cornerstone of democratic politics. It is usually vigorous and sometimes harsh, but when it reaches the point where the Government considers the people it leads as its enemy the very idea of democracy becomes debased.

    Whether it is smearing Rose Addis as racist or investigating Pam Warren and the survivors of the Paddington Rail crash for their political affiliations, one thing is clear. This Government believes that anyone who is prepared to speak out and contradict its message that things are in fact getting better, must have a political motive for doing so.

    Just last month, a newly-appointed Labour minister – the former Head of the Prime Minister’s Policy Unit summed up Labour’s governing philosophy. He said ‘Third Way triangulation is much better suited to insurgency than incumbency’.

    This is a polite way of saying that defining yourself by the people and things you are against instead of what you are for may win elections but isn’t much use when it comes to running the country.

    It is because Labour have failed to learn that lesson after more than five years in power, that they go after the likes of Rose Addis and Pam Warren with the venom that they do.

    Tony Blair said he would be ‘tough on crime, tough on the causes of crime’, but overall crime has started to rise again and violent crime and street crime are rocketing.

    The best David Blunkett can claim of nearly sixty headline-grabbing initiatives on law and order over the past year is that they are not Jack Straw’s.

    Tony Blair said ‘education, education, education’ would be their priority, but one in ten students in some inner city areas leave school without a single GCSE and indiscipline has become the standard in too many classrooms.

    And the best Estelle Morris can say is that the days of the one-size-fits-all comprehensive are over after David Blunkett abolished Grant Maintained schools.

    Tony Blair said Britain had ‘24 hours to save the NHS’, but five years later a quarter of a million people are having to pay for operations out of their own pockets because they cannot afford to wait any longer.

    And the best Alan Milburn can say about health is that there is now room for partnership with the private sector after boasting that the NHS would remain a state monopoly little more than a year ago.

    And where is the Chancellor in all this? He said National Insurance was ‘a tax on ordinary families’ and dismissed claims during the Election that he would increase it as ‘smears’. Ten months later he increased National Insurance by £8 billion while the state of our public services have declined still further.

    And the best Gordon Brown can do is to adopt a sphinx-like silence. But New Labour is his project too.

    Political discontent and cynicism have been accelerated by five years of a Prime Minister and a Chancellor who neither mean what they say nor say what they mean.

    Five years of seeking to be all things to all people.

    Five years when Labour’s only tangible achievement is to be neither the Party they once were nor the Government they replaced.

    They have poisoned the well for all politicians.

    So we cannot sit back and wait for the public disillusionment with Labour to grow. We have to show that the Conservative Party is changing, that we can deliver action not words.

    We do not have to stop being Conservative to win the next Election, but we do have to start showing how our principles will deliver solutions to the problems people face.

    Some people say it is not the job of the Conservative Party to talk about the vulnerable. I say it is part of our very purpose. It is what brought me into politics. That is why I will never be apologetic about putting the vulnerable at the centre of our strategy.

    Today Liam Fox is talking about giving mental illness a much higher priority within the Health Service. One in four people in this country suffer from mental illness of one form or another. It is our nation’s hidden epidemic and yet it is one our society’s last remaining taboos.

    There is nothing fashionable about championing the mentally ill, but they are the victims of an old consensus that has let them down.

    Too many people with mental illness now languish in prison and the Government plans to detain indefinitely people with personality disorders who have done no harm to others. The mentally ill have a right to be heard and we will give them a voice.

    Because it is vulnerable people – the elderly, the sick and the disadvantaged – who suffer most when public policy and public services fail.

    We have allowed issues like these to be colonised by Labour for far too long. The paucity of their methods and the poverty of their results can no longer go unchallenged.

    But it isn’t good enough for us just to talk the talk, we are going to have to walk the walk. People have to trust our motives, but they have to believe we will deliver.

    It is going to fall to us to tackle the problems of crime, failing schools, family breakdown and poor healthcare. Now, as in the past, we will work to give people back control over of their own lives, to direct power away from government to the places and the people who can use it more effectively. That is why I have set up a Unit to head the most wide-ranging review of our policies and our priorities for a generation.

    Better schools and hospitals, more responsive local government, means giving teachers, doctors, nurses and councillors the power to do their jobs and making them accountable for what they do.

    That is what happens in every other walk of life, it is also what happens in every other country whose standards of public services exceed our own.

    If we do these things people will see the difference. It is about putting people before systems, results before theory, and substance before spin. That is the right way to do things, but it is not Labour’s way.

    Taxation

    Instead of opening their minds to new ideas all they have done is open our wallets.

    The higher taxes announced in the Budget are intended to give us European levels of health spending.

    But European spending won’t give us European standards without reform. I was struck by recent figures which showed that the productivity improvements in the NHS before 1997 have been reversed over the last five years.

    And Tony Blair and Gordon Brown have shut the door on any serious debate reforming the NHS. Instead, they are simply going to give us higher taxes. That is an expensive recipe for disaster.

    In all, taxes will increase by around £8 billion pounds next year, and over half that sum will come from business, the very people who generate the country’s wealth in the first place.

    But this is not the first time Gordon Brown has raised taxes.

    Pensioners were his first target. In 1997, the Chancellor’s withdrawal of the ACT Dividend Tax Credit landed pension funds and pensioners with a £5 billion a year stealth tax from which they are still reeling.

    In 1998, the utility companies had to pay the second half of the £5.2bn windfall tax.

    In 1999, the very smallest businesses, personal service companies, first became aware that their vital contribution to the economy was to be attacked with the IR35 tax.

    In 2000, hauliers, taxi drivers and every single business reliant on road transport felt the anger of ordinary motorists at the highest taxes on petrol in Europe, culminating in the fuel crisis.

    In 2001, right in the middle of a painful manufacturing recession, Labour introduced the Climate Change Levy, a tax on energy which hit manufacturing the hardest.

    Finally, in Budget 2002, Gordon Brown announced half a billion pounds of higher National Insurance Contributions for the self-employed and £4bn more for all other businesses, not to mention £3.5bn extra that will now have to be paid by employees.

    Regulation and competitiveness

    But it’s not just the higher taxes that Labour have levied on business every single year.

    There’s the red tape, the Government’s favourite mechanism for getting business and the public services to do what it wants.

    Just this morning we hear that GPs are wasting two and half million appointments every year filling in repeat prescriptions and filling out sick notes to satisfy the thirst for bureaucracy.

    Businesses will recognise the pattern, as they cope with regulation upon regulation, from new payroll burdens that have turned businesses into unpaid benefits offices, to administrative juggernauts like the Working Time Directive.

    In monetary terms, the Institute of Directors calculates that these burdens have cost business a further £6bn every year, but no-one could ever really know the true cost of time which comes from having to fill in forms instead of creating wealth.

    And yet, despite all these taxes and all this red tape, Peter Mandelson, the architect of New Labour says, “we’re all Thatcherites now”.

    Well I’m a tolerant man and I believe in broad church politics, but I draw the line at heresy.

    Mr Mandelson says we all have to accept that globalisation “punishes hard any country that tries to run its economy by ignoring the realities of the market or prudent public finances”.

    Quite. So why is Labour ignoring one of the most fundamental realities of the free market: that to be competitive, to win orders and create wealth, you have to keep burdens on business to a minimum.

    We have become the fourth richest country in the world because Conservative Governments spent eighteen years freeing labour and capital markets, deregulating key sectors of industry, and slashing red tape and taxes.

    Every new regulation and every increase in business taxation introduced by Labour since then has undermined our long-term ability to compete in the global marketplace.

    Monetary stability and the Euro

    Another feature of the economic legacy that Conservatives passed to this Government was that we won the war against inflation. By 1997, inflation had already been running near to the 2.5% target for four years.

    The independence of the Bank of England has helped to reinforce this anti-inflationary environment and credit should be given to Gordon Brown for that measure at least.

    The real question now is this: do we want to give up those arrangements in favour of interest rates set by the European Central Bank?

    Joining the euro would mean no longer setting interest rates on the basis of what is best for Britain but submitting to a single rate that would benefit the whole of the Eurozone – an impossible task.

    The Prime Minister continues to drop hints about a referendum on the single currency next year.

    At a time when everyone is concerned about the state of their schools and hospitals, when we feel threatened by the rise in violent crime, he should focus on these issues and stop playing games over the Euro.

    Lately there are signs that the Prime Minister is getting cold feet, not because of the five economic tests but because of the only test that really matters to him, the opinion of the public.

    He grasps that a referendum on the single currency would also be a referendum on the breakdown of public trust in his Government.

    He is caught between the rock of the Pound’s popularity and the hard place of his own desire to scrap the Pound. His lack of conviction about everything else is getting in the way of the only conviction he truly holds. Such are the wages of spin.

    If the Prime Minister wants Britain to adopt the Euro, he should have the courage to say so, name a date and let the people of this country decide. If a referendum comes the Conservative Party with me at its head will campaign vigorously to keep the Pound.

    We will join with trade unions and businesses, and supporters of all parties and none who believe that replacing the Pound means away giving control over British interest rates, taxes, and public spending. It ultimately means British people giving away control over our politicians too.

    So not only will we campaign vigorously for a ‘no’ vote. We will not be alone. The Pound is more popular than any political party, because it doesn’t belong to any one political party. And we will fight to keep it that way.

    When Tony Blair entered Downing Street five years ago he had more going for him than any other incoming Prime Minister.

    A landslide election victory.

    The foundations of economic stability and success laid by his Conservative predecessors.

    The goodwill of the overwhelming majority of the British people.

    Never has a Government had so much, but achieved so little.

    With no fixed idea of who they are, they have chosen to define themselves by how they look. And the truth is after five years of lies and spin they are beginning to look pretty shoddy.

    They are no more capable of effective leadership to tackle the issues that undermine our society today than they were of grasping the economic reforms that were necessary in the 1980s.

    Whether it is raising standards in our schools and returning civility to our classrooms; restoring the rule of law to our streets; or dealing with the insecurities of infirmity and old age, it falls the Conservative Party to lead the way once more.

    That means fresh thinking and new ideas on education and health, on crime and policing, on finding new ways for people to share in economic growth.

    It means taking every opportunity to show ourselves as we really are: decent, tolerant and generous people who want the country we live in to be a better place for everyone.

    Above all it means showing that the difference between the Third Way and the right way is the difference between promises and delivery.

    We all know this in our hearts. Our job is to earn the right to prove it.

  • Iain Duncan Smith – 2003 Speech in Response to the Budget

    Iain Duncan Smith – 2003 Speech in Response to the Budget

    The speech made by Iain Duncan Smith, the then Leader of the Opposition, in the House of Commons on 9 April 2003.

    On behalf of the whole House, I congratulate the Chancellor on his happy announcement last weekend. I can assure him . children are a great blessing.

    Mr Deputy Speaker, over the past six years we have come to learn that the Chancellor’s Budget speeches are characterised as much by what they conceal as what they disclose.

    He prefers to let the damaging detail, the fine print, leak out over the days and weeks that follow.

    Today, nonetheless, despite all the Chancellor’s bombast and bravado, we learnt a lot.

    We learnt that the Chancellor has got his forecasts wrong. Again.

    We learnt that borrowing is up. Again.

    We learnt that taxes are up. And will stay up – from this week, a typical family is another £568 a year worse off.

    And we learnt that the Chancellor has no intention of being candid with this House or with the British people.

    Just look at today’s Red Book.

    1. On page 235 we see the savings ratio this year is forecast to be even lower than it was last year.

    2. On page 241 – we see that manufacturing output fell last year by 4 per cent, and that the Chancellor’s forecast for this year has been slashed.

    3. And on page 238 – we see that business investment, forecast last April to grow this year by up to 6 per cent, is now forecast to fall.

    We didn’t hear any of those details from the Chancellor today.

    The Chancellor who promised us prudence has now given us higher borrowing and higher taxes at the same time.

    His Budget message to the British people is. Higher taxes – that’s pain today.

    Higher borrowing – that’s more pain tomorrow.

    This is the Chancellor who has put up taxes…on pay and on jobs..on homes and on homeowners..on mortgages and on marriages..on petrol and on pensions.

    The Government is taking an extra five and a half thousand pounds per household per year.. an extra £44 a week in tax for every man, woman and child.

    The Chancellor’s excuse was that this money would make our public services world class.

    Instead. .we have a million people on hospital waiting lists. .a crime is committed every five seconds..and thousands of children are leaving school without a single GCSE.

    More tax, more spend, more waste – that is the sum of the Chancellor’s approach.

    This was the Government that promised: “We have no plans to increase tax at all.”

    And: “Our proposals do not involve raising taxes.”

    And even: “We want people to pay lower taxes.”

    And now, 53 tax rises later.This week, when people receive their pay packets, they will find that their take home pay has fallen for the first time in twenty years.

    Now they know what this Chancellor really stands for.

    Promises, promises, promises.

    Every year he makes them and every year he breaks them.

    And just as he has broken his promises to individuals, so has he broken his promises to business.

    In 1998, the Chancellor promised “major changes” to help business.

    In ’99, he promised tax cuts for business.

    In 2000, he promised incentives for business.

    In 2001, he promised more good news for business.

    Today we see what his promises are worth.

    An £8 billion tax on jobs.

    That’s the cost of his National Insurance hike.

    It’s hitting business. And it’s hitting them hard!

    So hard, say the British Chambers of Commerce, that one in five firms may cut jobs as a result.

    In fact, this Chancellor has been so hard on business that, since 1997, he has taken an extra £47 billion from them in tax.

    No wonder he didn’t tell the House today about the real cost of his policies.

    He didn’t say insolvencies are at their worst level for a decade.

    Or that analysts say that another 70,000 firms will go bust over the next three years.

    And he didn’t say that manufacturing has lost 300 jobs every single day since Labour came to power.

    And he didn’t say that manufacturing output and investment are both now lower than when he delivered his first Budget.

    And just as he has broken his promises to business, so he has broken his promises to hard-working families.

    Since 1997 council tax has gone up by 60 per cent, adding more than £400 to a typical bill.

    Just look at the Red Book – council tax up by £8 billion since Labour came to power.

    Stamp duty increases have added over £5000 to the cost of the average detached home in the South East.

    The abolition of mortgage tax relief has cost homeowners over £200 a year.

    The abolition of the Married Couples’ Allowance has cost families £300 a year.

    Higher petrol taxes have cost the average motorist another £300 a year.

    In short, the Government’s tax take has now risen by 50 per cent since he became Chancellor.

    Mr Deputy Speaker, of all those who have been hit by the Chancellor, there is one group who will be hurt more than most.

    The savers of today are the pensioners of tomorrow.

    And he has blighted their old age, their retirement . . . what should have been their golden years.

    In 1997, he promised, “to encourage personal savings”.

    In 2001, he promised, “to reward savers, pensioners and hard working families”.

    Promises, promises, promises.

    But under him, saving has halved.

    When Labour took office in 1997 the savings ratio was 10 per cent.

    Today it is 4.75 per cent. It’s there in the Red Book.

    So he’s destroyed savings.

    And his so-called “reform” to the pensions system has hit future pensioners with a £5 billion a year tax. .it has created a pensions crisis..and, perhaps most damaging of all.someone retiring today will do so on half the income they would have received in 1997 – – Half.

    And he hasn’t just let down future pensioners.

    Because this was the man who promised to end the means test for pensioners.

    But under him, the proportion of pensioner households subject to a means test is up by 50 per cent.

    I want to turn now, Mr Deputy Speaker, to the financial impact of war in Iraq.

    We support the Government in their waging of this war and we naturally support its full and proper funding.

    But the Chancellor should be warned. He cannot get away with using this war to get him off the hook for his long-term mismanagement of the economy.

    And he can’t get away with blaming Europe for his problems.

    He simply cannot blame his flawed and missed forecasts solely on world events.

    Last April, the Chancellor delivered his forecasts for the coming year to the House.

    And he got them wrong.

    He got his forecasts for growth wrong.

    His excuse, in other words.

    He got his forecasts for tax revenues – wrong.

    And he got his forecasts for borrowing – wrong.

    In November, the Chancellor admitted that his central growth forecast for 2002 – two and a quarter per cent – was wrong.

    He conceded that tax revenues had failed to meet his projections.

    He announced that borrowing would have to rise – by £20 billion in just two years.

    And then he blamed everything on the fact that world trade and world GDP growth had not been as fast as he had forecast..was not that the Chancellor had failed Britain….but that the World had failed the Chancellor.

    Now, that’s a serious charge, Mr Deputy Speaker.

    So I went back to last year’s Red Book.

    And when you look at it, you see that.

    At the time he delivered his Pre-Budget Report in November.

    The only forecasts that were right were his forecasts for world trade and his forecasts for world growth.

    So, he blamed the world for getting it wrong, but actually that was the only forecast he got right.

    Today, the Chancellor had to admit he has got his growth forecast wrong yet again.

    So his growth forecasts were wrong and his assumptions for tax revenues were wrong as well.

    The result is that his projections for borrowing are wrong.

    Now, the Chancellor sprinted through his borrowing figures, so let me recap.

    Last April, the Chancellor predicted that he would have to borrow £13 billion this financial year.

    Today, he admitted he would actually have to borrow £27 billion.

    And that only takes us to the end of this financial year.

    Look at the longer term picture.

    Just two Budgets ago, the Chancellor told the House that he would need to borrow £35 billion between 2002 and 2006.

    Today, he admitted that the true figure for total borrowing over that period is actually £98 billion.

    So in just two years, his medium term borrowing requirements have risen by £63 billion.

    That’s an extra £2600 per household.

    But borrowing is not something the Chancellor can do indefinitely.

    More and more borrowing will mean higher and higher taxes.

    Throughout, independent forecasters have long been warning him that he was far too optimistic.

    They questioned his revised predictions.

    Some called them, “overly optimistic” and “rose-tinted”.

    And we know what the independent experts think now.

    78 per cent of them think that, by 2006, the Chancellor will have to raise taxes by between five and eight billion pounds.

    And these are the experts on the Treasury’s own panel.

    But you won’t hear this from the Chancellor.

    Mr Deputy Speaker, the Chancellor’s broken promises and missed forecasts might be more palatable if we were seeing real reform of our public services.

    But the facts speak for themselves.

    Take health: A million people on NHS waiting lists. Hospital admissions down, not up. And, last year, three hundred thousand people forced to pay for their own operations – a figure that has trebled since 1997.

    Or education. 50,000 children play truant every day one in four leaves primary school unable to read, write and count properly and more than 30,000 children leave school each year without a single GCSE.

    Mr Deputy Speaker, this Government has tested to destruction the theory that more and more money alone can transform our public services.

    They have talked about reform, but they have delivered none.

    Today, he could have delivered.

    Six years of spin and spending can’t hide the fact that our public services are just not good enough.

    They don’t simply need more money, they need a new approach.

    An approach based on giving power back to people, so they feel in control of their lives – whether they are nurses and teachers or patients and parents.

    Mr Deputy Speaker, the Chancellor has just delivered his seventh Budget.

    Six years.

    Seven speeches.

    Promises, promises, promises.

    He promised . . .

    Prudent Budgets . . Fair Budgets. . . Budgets for enterprise. . . Budgets for the public services.

    And he hasn’t delivered any of it.

    He has got it wrong because he puts systems and initiatives, targets and schemes, before real people and real results.

    He has got it wrong because he thinks he knows better than the people of this country how they should be living their lives.

    He has got it wrong because he is driven not by the facts – which are staring him in the face – but by an ideology that has gripped his mind and will not let it go.

    His sole mission is to prove that the old ways still work.

    Never mind the evidence, never mind the consequences.

    So it’s just more failing policies and more downgraded forecasts from a discredited Chancellor.

    Last week, before it was too late, he could have scrapped his tax on jobs and pay.

    He could have stopped punishing people who work hard and save hard. Security and independence, for the young and the old, for hard-working families and individuals, for those who create jobs and those who need them, for those who pay for our public services and for those who rely on them.

    He could have delivered a fair deal for all of them.

    But he didn’t.

    He never will.

    And it’s the British people, Mr Deputy Speaker, who will pay the price.

    More taxes, more spending and public services that simply aren’t good enough.

    The message of this Budget is clear.

    For the British people – it’s pain today. And as borrowing spirals while the Chancellor blocks real reform, today’s Budget means more pain tomorrow.

  • Iain Duncan Smith – 2003 Speech at Toynbee Hall

    Iain Duncan Smith – 2003 Speech at Toynbee Hall

    The speech made by Iain Duncan Smith, the then Leader of the Opposition, on 29 April 2003.

    Thank you very much, Luke, for again inviting me to speak at Toynbee Hall.

    I pay sincere tribute to the dedication to London’s East End of all your staff and all of Toynbee’s many volunteers.

    Toynbee Hall’s national reputation for social policy is deeply rooted in your commitment to innovative community service.

    The Barnetts, Atlee, Beveridge and other Toynbee greats would – I am sure – be very proud of Toynbee Hall’s work today.

    And I know I speak for all of us here when I say a special thank you to your inspirational President, Jack Profumo.

    It was nearly six months ago – when on my visit to you – I named five new giants stalking Britain.

    Five key social challenges facing our people:

    Rising crime;

    Failing schools;

    Substandard healthcare;

    Child poverty; and

    Insecurity in old age.

    Those five giants already affect or threaten every community in Britain.

    Defeating them isn’t just a moral obligation.

    Turning the tide on crime and public service failure is in everyone’s interest.

    Not just because none of us are immune from the damaging effects of social decline.

    But also because unless we come together as a nation – in order to advance the interests of everyone – we forfeit the right to call ourselves civilised.

    People from minority communities, our poorest citizens and the very young and very old remain Britain’s most vulnerable – they are hurt most by the giants.

    In the past some Conservatives gave the false impression that poverty had been overcome.

    During my leadership I’ve made it clear that that’s not my belief.

    Last year, David Willetts gave a speech entitled ‘The Reality of Poverty’.

    In it he surveyed the complex material and relational dimensions of twenty-first century poverty.

    He noted that fighting poverty wouldn’t be cheap but it couldn’t be just about money.

    Communities stay poor because of crime, community breakdown and the disempowerment that can be passed from one generation to the next.

    He and other shadow cabinet ministers held a number of investigative One Nation Hearings in hard-pressed areas.

    And I told last spring’s party forum that restoring hope in places like Glasgow’s Easterhouse estate was a personal commitment.

    In recent months the Conservative Party has begun the process of unveiling policies that underpin our determination to restore that hope.

    Take education.

    Far too many inner city schools are failing.

    And when they fail – one of a young person’s best hopes of a better future is lost, perhaps forever.

    Damian Green has proposed a system of state scholarships to provide children from inner city areas with an escape route from failure.

    State scholarships will give parents a chance to send their child to a good school.

    One more suited to their child’s needs and their own values.

    This system of scholarships will, I hope, encourage higher standards in existing schools.

    But it will also encourage – and pay for – the establishment of new schools that serve children’s diverse needs.

    If education is a springboard out of poverty; then crime can entrap children in it.

    Oliver Letwin’s innovative policies will cut the conveyor belt to crime for tens of thousands of young people.

    A greater emphasis on early intervention – including parent support services – will stop the conveyor belt at its earlier stages.

    And the Conservative commitment to fund 20,000 new drug rehabilitation places will give other young people a chance to find freedom from addiction.

    I’ve sat with parents of drug users who – already devastated by their child’s drug habit – are close to being broken by the failure of the current system to provide rehab.

    That has to change.

    Another change we must make is to the level of policing on Britain’s streets.

    The 40,000 extra neighbourhood police officers Conservatives are committed to provide are not just a sign of our commitment to beat crime.

    They’re a symbol of our commitment to restore community and reclaim it from the gangs that imprison people in their homes.

    Through commitments like these on education and crime – and other policies focusing on better healthcare and housing – Conservatives will reverse the decline in Britain’s public services.

    Our policies are built on the rock of successful models throughout Europe and in Australia and America.

    We build, too, on what local Conservative councils are already achieving.

    Last year it was Conservative councils that received the most star awards for the quality of their social service provision for vulnerable people.

    Conservative councils run schools with the lowest levels of truancy and the best exam results.

    Local Conservatives are more committed to provision of street lighting and CCTV.

    By this time on Friday I hope more Conservative councillors will have been elected to deliver such practical compassion.

    Labour’s record on public service reform has failed the whole nation but the poor have suffered most.

    The revitalisation of Britain’s public services is vital and urgent but – on its own – it won’t be enough to reduce child poverty and other forms of social injustice.

    Progress will need to be underpinned by a strong, job-creating economy.

    Success will also depend upon a stronger, cohesive society.

    A society of which we can all feel proud.

    And by society I do not mean the state.

    The free institutions of society – like families, charities, local schools and other people-sized institutions – provide diverse, innovative and face-to-face care that state bureaucracies cannot match.

    It’s these associations within society that give me the greatest hope that even the worst effects of the Five Giants can be overcome.

    Since I named the Five Giants I’ve travelled to almost every part of Britain.

    The Five Giants are at least as menacing as I feared.

    Too much of what I have seen has made me conclude that society is being hollowed out from within.

    In Glasgow, Jim Doherty and Janis Dobbie of the Gallowgate Family Support Group, showed me around Parkhead Cross.

    It’s a neighbourhood in the grip of drug abuse and the havoc it wreaks.

    At night criminal gangs rule the streets.

    Two of Jim’s own sons have become addicts.

    He can’t understand the failure of government to provide proper rehab for his children and the children of the other families who flock to the Gallowgate Support Group.

    He told me “We have already lost our children’s generation to drugs.

    The battle we’re fighting now is to save our grandchildren.”

    Jim’s words – Jim’s challenge – affected me deeply.

    If Britain doesn’t act to save his grandchildren my generation of politicians will have failed.

    And we will certainly fail if we don’t do something about the state monoculture.

    The state is already too pervasive on many of the poorest communities -crowding out any and all alternatives to its own bureaucratic agencies and its metropolitan worldview.

    Beneath an artificial plantation of conifers nothing grows.

    All light is absorbed by the dense and impenetrable canopy far above the soil.

    The five giants won’t be defeated if government acts as if the work and values of groups like Jim Doherty’s don’t matter.

    Government must become an active and enthusiastic servant of society’s many poverty-fighting and community-building groups.

    In natural woodland, trees are spaced apart – allowing light and rain to nourish a diversity of plants and wildlife.

    An enriching and highly-interdependent ecosystem develops.

    It’s still like that in parts of Britain.

    For a very long time the people-sized institutions of society have lacked political champions.

    Their vital role has been taken for granted – or worse still dismissed – by big state and free market fundamentalists.

    That must change.

    Government can and must do much more to unlock Britain’s social capital.

    Soon, I’ll be publishing a Green Paper that will investigate how the next Conservative government will do that.

    It will contain proposals that are themselves as ambitious as the aspiration to serve of our nation’s volunteers, charities and social entrepreneurs.

    It will applaud the work of faith-based groups like Manchester’s Message Trust and Cardiff’s Care for the Family that have impressed me so profoundly.

    The government is wedded to the idea that more government spending and control is the answer to today’s challenges.

    But this government is not unlocking the potential of Britain’s social capital.

    It is not helping the people who have the ideas and values to rebuild their communities.

    Luke – on behalf of Toynbee Hall – has been one of a large number of voluntary sector representatives who have kindly contributed to the formulation of the Conservative Green Paper.

    That Green Paper will be a next stage in my party’s continuing commitment to offer a fair deal for Britain’s most vulnerable communities.

    I look forward to as many of you here as possible helping us to first develop – and then deliver – that fair deal.

    It’s time for politicians to help people rebuild their communities.

    And to return hope to neighbourhoods where – today – there is none.

  • Iain Duncan Smith – 2003 Speech at the British-Swiss Chamber of Commerce in Central London

    Iain Duncan Smith – 2003 Speech at the British-Swiss Chamber of Commerce in Central London

    The speech made by Iain Duncan Smith, the then Leader of the Opposition, on 19 May 2003.

    It’s a great privilege to be here to speak to you today. The British-Swiss Chamber of Commerce has a vital role to play in developing business relations between Britain and Switzerland.

    It’s a role you play with distinction.

    I would like to address three issues which are of common interest to all those concerned with the future- its business environment and, its place in Europe.

    In turn, I want to deal with our competitiveness, the euro and the proposed European Constitution.
    I have three propositions for you today.

    First, that Britain’s competitive position is being undermined…

    both by the micro-economic management of a Government that does not understand how business works and by the impact of its failure to reform our public services on our tax position, our public finances and our quality of life.

    Second, that addressing these root causes of declining competitiveness is what matters most to Britain and its business economy – not focusing on joining the euro. Labour’s political obsession with the latter is to the detriment of us all.

    Third, that Europe will not be improved by deeper integration and the strengthening of its institutions – but rather by bringing democratic power and accountability closer to all the peoples of Europe by reinforcing the autonomous power of nation states.

    We will lead this fight.

    Competitiveness

    Britain does not enjoy the quality of life it should.

    · There are a million people on Britain’s hospital waiting lists.
    · One in four children leave our primary schools unable to read, write and count properly.
    · Thirty thousand children leave our secondary schools without a single GCSE.
    · 39 out of every 40 crimes go unpunished by a conviction.
    · And British people spend longer commuting to work than any other people in Europe.

    The Labour Government’s only answer has been to spend more and more taxpayers’ money.

    By the end of their current plans, real terms spending on health will have doubled — and on education will have risen by 50 per cent.

    That’s why the government tax take has already risen by the equivalent of an extra five and a half thousand pounds a year for every household in Britain.

    And that’s why public borrowing is now spiralling upwards too.

    This is nothing less than a massive tax and spend gamble.

    And our competitiveness is fast being eroded.

    Britain is once more becoming a place where people do not want to do business.

    Business investment is falling and savings have collapsed.

    Burdens on business are up and our competitiveness and productivity growth are down.

    The CBI believes Labour’s extra tax and regulations have added as much as £15 billion a year to the cost of doing business in Britain.

    And since 1997

    · we’ve lost over half a million jobs in manufacturing,
    · we’ve seen the number of days lost to strikes increased sixfold
    · and we’ve fallen from 9th to 16th in the World Competitiveness rankings.

    But more than this, we understand that competitiveness is not just about economic efficiency.

    To compete means being a country where people want to live and where businesses actively choose to locate their operations.

    A place that can attract and retain the best talent and the most investment.

    A place with something extra to offer.

    To compete means being a nation with a well educated, highly qualified workforce that doesn’t waste weeks every year, off sick, or stuck in traffic jams.

    As a global competitor, we have lost a lot of ground.

    With taxes up, we’re a more expensive place to do business.

    With regulation up, we’re no longer an easy place to do business.

    With our public services in decay, we’re no longer a magnet for talent or investment.

    So how would a Conservative administration be different?

    First, we are, by nature, a party of lower tax.

    We believe that governments should measure success not by how much money they spend, but how well – and how carefully – they spend it.

    Second, a Conservative Government will not second-guess everything business does.

    We will not be over-interfering in the way businesses are run.

    Third, on public services we are committed to a strategy of real reform — widening choice and rooting out bureaucratic waste.

    This is what it will take if we are to begin to deliver a fair deal for everyone.

    And if we fail, Britain will be a less competitive place as a result.

    Euro

    My second proposition is that rather than addressing these problems, the Government is obsessed with the euro.

    Look at the mess they are in.

    Last Wednesday, they told the BBC they had reached an agreement.

    By Thursday morning they were having to deny that.

    And shortly afterwards, they announced that the Chancellor’s conclusions on the euro would be delayed until June 9.

    In the meantime, special Cabinet sessions have been called to thrash out the issue.

    The Chancellor, the Prime Minister and their factions are still clearly miles apart on whether they will rule out a euro vote before the next election.

    And Cabinet Ministers have been contradicting each other every other day.

    Last Sunday, John Reid said it was a question of when Britain would join the euro.

    Then on Wednesday, Jack Straw said it was first of all a question of if Britain should join.

    On Thursday, John Prescott said they hadn’t even decided whether the question itself was if or when.

    On Friday, the Prime Minister and the Chancellor were so concerned about the depth of the splits that they issued a joint statement to deny there were any splits at all.

    And yet we now hear that the Prime Minister does not want to hold a full Cabinet discussion on the euro until he has marched members of the Cabinet in one by one to beat up the Chancellor in private.

    I have a simple message for the Prime Minister and the Chancellor – let us all see the available evidence now.

    That way, we can weigh all the facts up for ourselves and come to our own conclusions.

    The Conservatives’ position is clear.

    We would not take Britain into the euro because we believe that giving up our ability to set our own interest rates would be…

    · bad for British jobs…
    · bad for the British economy….
    · and bad for the British people.

    We believe Gordon Brown’s five tests are a sham.

    Of course the Chancellor is right to say that it would be damaging to join the euro…

    · without the necessary convergence or flexibility…
    · or if joining would be bad for investment, financial services, or jobs.

    But there is no case for saying that any of these tests have been met.

    France has 2.5 million people unemployed; and Germany nearly double that.

    It is impossible to see how the Government could argue that joining the euro would be good for jobs.

    In fact, the opposite is true.

    But, of course, these economic tests are no more than an elaborate smokescreen.

    Because the only test that matters to the Government is the political one.

    They may pretend that they want to join the euro for economic reasons.

    They may argue that remaining outside the euro will damage our economic prospects – hitting our competitiveness, our trade performance and our ability to attract investment.

    But the fact is that despite being outside the euro, Britain remains a more attractive destination for inward investment than any eurozone country.

    We remain the world’s third favourite location for inward investors, after China and the United States.

    Not being in the euro has done our investment performance no harm at all.

    And the example of Switzerland, for that matter, shows that it is possible to live prosperously alongside the euro, at the heart of Europe, without adopting the single currency.

    But we will not retain our position for long if our domestic competitiveness continues to be undermined and we cease to be an attractive place to do business.

    Our trade performance tells the same story.

    In the euro’s first three years, British goods exports to the eurozone grew by 26.4 per cent – faster than France, Germany or Italy.

    But again, in the long term, our trade performance will depend on our ability to provide goods and services to a competitive standard at a competitive cost.

    So long as our productivity growth stagnates as it has for the past five years, we are in danger of slipping behind our competitors.

    And by that I do not just mean our competitors in the EU, but all those around the world.
    As we speak, the current uncertainty is doing damage to our competitive position.

    The Government is split and concentrating on healing political rows rather than on healing the public services.

    And, meanwhile, business is crying out for more certainty.

    My message to the Prime Minister is simple.

    Ever since becoming Prime Minister he has made it clear that he is in favour of the euro in principle.

    If, despite all the economic evidence, and despite all the splits in his Cabinet, he remains determined to take Britain into the euro, then…

    …he should admit that his is an entirely political decision…
    …and he should get on with calling a referendum so the British people can have their say.

    If not, he should forget about it and get on with what matters to the British people – delivering sustained prosperity and world-class public services.

    Constitution

    I am going to turn now to my third and final proposition – that the Government’s policy on the European Constitution, like its policy on the euro, threatens to give people a raw deal.

    The Convention on the Future of Europe is drawing up a draft constitution that may determine the shape of Europe for the next half-century.

    But right now, Europe faces tougher challenges than it has for many years.

    For a long time, we Conservatives have argued that the European Union is faced with a crisis of democracy and accountability.

    Turnout in European elections has fallen below fifty per cent across Europe.

    The peoples of Europe feel little ownership of European institutions.

    But at the same time the Europe Union is growing.

    Ten new states will join next year, increasing the EU’s population to four hundred and fifty million.

    We have always seen enlargement as one of the European Union’s most important tasks.

    But I fear that the direction being taken by the draft European Constitution will do little to serve the interests of the people of Europe, present or future.

    The peoples of Europe, and most particularly those in enlargement states, want jobs and prosperity — but the EU’s economic performance has been poor, and unemployment is far too high.

    Across the EU, people also want to feel connected to the laws and institutions that government them — but at present, our democracies face a great challenge — people feel alienated from the political process.

    Economic reform and political connection – these are the two points a modern, forward-looking EU should focus on.

    But though it is clear — and almost universally agreed — that the EU is in desperate need of reform — the Convention is looking backwards towards a vision of Europe that is wholly outdated.

    Now is not the time for more centralization and deeper integration in the EU.

    It’s time, as can be seen so clearly from the health of democracy in Switzerland, to reinforce democracy in nation states.

    The Conservative Party has a different vision of the future of the European Union.

    We want to see the decentralising of powers back towards national parliaments.

    Not least because, in the case of many of the new, enlargement states, these Parliaments are young, hopeful institutions we should seek to support, not to undermine.

    That way we can achieve a Europe that is more democratic, more accountable, and better suited to enlargement.

    And it is because we believe so passionately in an alternative and, we think, better vision of a modern Europe…

    …because we believe in the dream of a prosperous, harmonious, enlarged Europe that works for all its people…
    …we believe that the people of Britain should have the opportunity to vote on any proposed European Constitution.

    Since the current Labour Government came to power in 1997, there have been 34 referendums in Britain.

    Referendums have been held on everything from devolution to elected mayors – and have been promised on regional assemblies.

    In short, referendums have become the norm wherever changes have been proposed to the way people are represented and governed.

    But when it comes to the European Constitution – a constitution that will decide how every person in this country is governed, regardless of where they live – the Government doesn’t think the British people need a say.

    The Government’s defence is that the European Constitution will merely be a ‘tidying-up exercise’.

    Let’s challenge that assertion.

    The Prime Minister meets Giscard d’Estaing tonight.

    If this is merely a tidying up exercise, then a lot of what is currently being proposed must be dropped.

    Not least the plans for…

    · a single European foreign minister
    · a Constitution with legally enforceable fundamental rights
    · the establishment of legal status for the EU – the prerequisite of a state
    · the bringing of foreign, defence and home affairs, including asylum and immigration policy, under European jurisdiction
    · the extension of EU competence over criminal law including the establishment of an EU public prosecutor.
    · the adoption of qualified majority voting, rather than unanimity, as the default mode of European decision making
    · and plans to establish a fixed term five year presidency of the EU, even if that means Tony Blair having to reconsider what he will do with his retirement.

    Unless these, and other, items are dropped, then this cannot be called mere tidying up.

    As things stand, there can be no doubt that the draft constitution proposes deep and dangerous changes to how the British people, and all other peoples of Europe, are governed.

    What could strengthen the Prime Minister’s negotiating position more, and what could reassure those who fear what will emerge from this Convention more, than a commitment to giving the British people the right to make up their own minds on a proposed European Constitution?

    In just six years they have held 34 referendums.

    And there are many more to come.

    But on the only two issues of absolutely crucial importance to every single person in Britain – membership of the euro and signing up to a European Constitution – the Government is playing political games.

    On the euro, it has promised a referendum – but is clearly planning to call one only if and when it believes it can win.

    On the Constitution it speaks volumes that the Government has so arrogantly dismissed calls for the British people to have any say at all.

    It refuses to grant them a referendum.

    Contrast this with Switzerland, where a series of referendums were held only yesterday.

    Conclusion

    Historically, Britain is a great trading nation.

    Globally, we were the forefathers of free trade.

    We retain close and important ties with Switzerland and with so many countries across the world, within the EU and outside it.

    At home, a Conservative Government will recognize that it is the flexibility and innovation at the heart of our economy that determines our ability to compete internationally, far more than whether or not we share the same currency as others.

    We believe that if we hold no-one in our society back, we will be better placed to achieve this competitiveness and to ensure that no-one in our country is left behind.

    Internationally, we recognize that people don’t want a European super-state that leaves them feeling alienated from the faceless institutions that make their laws.

    The people of Europe deserve to live in a harmonious union of free moving, free trading nations, fostering prosperity and stability.

    The nations of Europe should settle for nothing less.

  • Iain Duncan Smith – 2003 Speech at the Launch of the Conservative Party Consultation Document on Health

    Iain Duncan Smith – 2003 Speech at the Launch of the Conservative Party Consultation Document on Health

    The speech made by Iain Duncan Smith, the then Leader of the Opposition, on 5 June 2003.

    The Labour Government is dangerously divided.

    And it’s got its priorities hopelessly wrong.

    That’s as plain today as it will ever be.

    We are not be going to spend today talking about the euro.

    We are going to talk about things that are already damaging the British people’s quality of life…

    Day in, day out…

    The public services on which they depend — and which are now failing them badly under Labour.

    But the Government are most certainly talking about the euro today.

    And they’ll still be talking about it tomorrow.

    And for a long time after that.

    Even as – we – speak, Mr Blair and Mr Brown are lining up their coalitions, on either side of the Cabinet table, ready for a battle over the euro — in which the losers will be the British people.

    While the Government are busy talking about something people don’t want — the euro — we will be talking about something they do want – better healthcare.

    This distracted and divided Government should be focusing on the things that really matter to the British people.

    The British people want better public services.

    Public services that work – and work well.

    We’ve already begun.

    For the past two years, we have been conducting the most wide-ranging policy review for a generation.

    A policy review focused on making the public services better.

    We have travelled – at home and abroad – learning from whatever works best for people.

    So last month, we promised to scrap Labour’s university tuition fees – their tax on learning.

    Today, Liam Fox and I are launching fresh, exciting proposals designed to give British people the better healthcare they need and deserve.

    Today begins a full consultation with patients and professionals on something that will make a real difference to people’s lives.

    The ‘patient’s passport’ is our plan to give people real choice over the health treatment they receive.

    This will be a fair deal for patients.

    A fair deal for everyone on healthcare.

    Our proposals will mean…

    Fairer healthcare, with no-one left behind, as we expand choice to everyone, not just those who can afford it.

    Fairer healthcare, with no-one held back, as we recognise the contributions of those who pay for their own treatment.

    Last year, a staggering number of people – 300,000 – paid for their own treatment.

    Most of them were pensioners — desperate people, who had suffered for too long.

    Under our proposals for a Patient’s Passport, everyone in the NHS will be able to get treatment at the hospital of their choice, free of charge.

    And people who choose to go outside the NHS for their treatment will be helped, not penalised.

    Our proposals would also mean…

    Better healthcare for everyone, with choice driving innovation and excellence.

    And more healthcare, as we expand the capacity of the health system in Britain.

    Our proposals would mean nothing less than a revolution in healthcare.

    We will preserve all the founding ideals of the NHS.

    Healthcare, according to your need not your ability to pay, and free at the point of delivery.

    But, for the first time in its history, the NHS would become a truly national health service — embracing our belief that healthcare is first and foremost about the patient.

    Compared to that, everything else is surely secondary.

    Our plans for a patients’ passport, combined with our plans to shift power from politicians to doctors, nurses and hospitals, will deliver a fair deal for everyone on healthcare.

    We care enough to find out what people really want, and we are open-minded enough to find out what really works.

    That’s why last month we promised to scrap Labour’s university tuition fees, abolishing their tax on learning.

    That’s why today we are proposing to give every patient in Britain a Patient’s Passport, making real choice available to all, not just those who can afford it.

    We have the courage and vision to commit Britain to a better course.

    Today, we are taking forward our fight, on behalf of the British people…

    For better public services — and a fair deal for everyone.

    A fair deal for people who find themselves paying higher and higher taxes, but not getting the improved public services they need.

    We will give them those better public services

    …public services where no-one is held back…

    …and no-one is left behind.

    A fair deal for people who deserve better healthcare.

    A fair deal for people who deserve a better education.

    A fair deal for people who have been made to wait and suffer too long.

    That’s our fair deal for everyone in Britain.

  • Iain Duncan Smith – 2003 Speech to Conservative Party Members in Birmingham

    Iain Duncan Smith – 2003 Speech to Conservative Party Members in Birmingham

    The speech made by Iain Duncan Smith, the then Leader of the Opposition, in Birmingham on 26 June 2003.

    The Conservative Party is committed to a fair deal for everyone.

    There are those, however, who claim this is little more than a dream.

    They argue that leadership is about choices.

    They say you have to penalise one group to help another. You soak the rich to help the poor or you neglect the poor to help the rich.

    This Government believes this argument.

    That became clear again last week when Peter Hain broke the golden rule of New Labour and told the truth about their tax raising agenda.

    But as Conservatives we reject this false choice. We recognise that you don’t help vulnerable people by making the rest poorer, and nor do you make our country richer by leaving large sections of society behind.

    Our fair deal for everyone demands that we are just as committed to leaving no one behind as we are to holding no one back. It is a realisable goal, but it requires leadership, vision and ambition.

    These are three qualities this party has shown before. And we have them again today.

    We have always been the party of one nation. The social and economic reforms of the 1980s were only possible because we built a coalition across social groups and reached out to the inner cities as much as to the leafy suburbs and the shires.

    Today we are still that party, but we must renew our commitment to solving and not merely managing the problems of places like Handsworth here in Birmingham.

    We believe the problems faced by parts of Britain’s inner cities are not insurmountable. No one should be excluded from society because of where they live.

    We believe in the creation of the neighbourly society – not as an unachievable utopia but as a real and possible vehicle of sustained social progress.

    We believe that we can transform our representation in our inner cities because by supporting community groups such as Parents United who I met earlier today, we are showing that only the Conservative Party believes in the potential of every single person who lives in some of the most deprived areas of our country.

    Our challenge is not to attack those who create our nation’s wealth, but to focus instead on ensuring everyone shares in that wealth to the benefit of society as a whole.

  • Iain Duncan Smith – 2003 Speech on Special Needs Schools

    Iain Duncan Smith – 2003 Speech on Special Needs Schools

    The speech made by Iain Duncan Smith, the then Leader of the Opposition, at Westminster Hall on 1 July 2003.

    I thank the Minister for Children for being here today. The subject of the debate, while not directly a party political issue, brings into question the Government’s attitude to special needs. I hope that she will be able to respond to some very serious questions that the consultation process in Waltham Forest has raised.

    I begin by declaring an interest. I am a trustee of a superb special needs school in my constituency called Whitefield, which, while originally part of the consultation process, is not directly involved. It is through that that I have come to take a very special interest in such schools.

    The schools that are directly affected by Waltham Forest council’s drive on special needs schools are Belmont Park, Brookfield House, Hawkswood, Joseph Clarke, William Morris and Whitefield, which I mentioned earlier. The timelines are very simple. I shall not go into details, as I am sure that the Minister has them already to hand. The first report from the council was, I believe, on 17 December 2002, at which time the consultation process was, essentially, mooted. A consultation process was set out, and I understand that it is finally due to conclude some time in the middle of September this year.

    I have questions about whether the consultation process is really as open and fair as it should be or whether the council and the education action forum have already reached a conclusion and are simply going through the motions. Three reasons were given for considering whether special needs education should be reordered, with the strong possibility of closure of one or more schools that deliver such education in the borough. The first reason was the Government’s position on the national standards established in the Special Educational Needs and Disability Act 2001. The second had to do with meeting the inclusion standards of the Department for Education and Skills, Ofsted and the Audit Commission, and the third was the borough’s own policy on social inclusion.

    Let me discuss my concerns about the consultation process by dealing with the Government’s position on the matter and what the borough is essentially saying about its needs. The consultation has not been as fair and as open as the council would have us believe. It received only a small number of returns on the original consultation that was sent out. I believe that more than 15,000 were sent out but not more than 1,000 were returned.

    In the meantime, there was a phenomenal reaction not only from people who have children in the schools, but most remarkably, from people who live in the borough but do not have children attending the schools and from people who live way beyond Waltham Forest but have a direct interest in the issue. A number of MPs fit into that category. Indeed, I think that the Minister’s own constituency is affected. I believe that a petition of just under 30,000 signatures was presented to the council and that more are arriving every day. I do not recall such an overwhelming passion being declared quite so clearly and openly to the council in such a short time. Sadly, the council does not necessarily seem to have paid much attention. I shall return to that matter in a moment.

    One problem with the consultation process is the fact that the costs of the integration have not been fully explained. We always hear about the savings to be made from closing a special needs school, but we do not see in detail how much it will cost to integrate children with serious physical or learning disabilities into mainstream schools. That is critical. Nowhere in the document have I seen a statement of such clarity that it would allow us to make a judgment.

    I should like to refer to a letter from Marcia Gibbs, a special educational needs adviser at the DFES, in response to Joseph Clarke school. She makes interesting points. First, she states: “Waltham Forest local authority would have to provide details of plans to support children currently attending Joseph Clarke School, including those pupils from other authorities, should it decide to make proposals for change.”

    However, none of those are included in the consultation, so how are we to make a decision about how effective the process will be? That is missing. Marcia Gibbs goes on to say: “The right of parents to make a positive choice and express a preference for a special school place will be fully maintained.”

    At the same time, however, she restates the Government’s determined advocacy of inclusion.

    My concern is that there seem to be conflicting interests even within that letter. It suggests that although the Government are determined about inclusion, there is not a clear statement to local authorities and education authorities on exactly what they need to do if they are to go down the route of the consultation process. There is only a general statement of what is required. I want to return to that issue, because I believe that it will cause the greatest problem.

    I understand that in the early part of June, the council announced, almost out of nowhere, that it was taking Brookfield school out of the process and that it was no longer under threat of closure. It said that that was because the costs of integrating those children with serious physical disabilities would be too great, but at no stage have we seen those costs. What are the costs and what calculations has the council made for schools such as Joseph Clarke or Hawkswood? Hawkswood has children with severe hearing disabilities and Joseph Clarke has children with visual impairment. My point is that at no stage has the local authority indicated anywhere what those costs are and how it has calculated them, but suddenly, out of the blue, it declares that one school is no longer relevant to the process. There is no regard to the costs. That makes us concerned about how the authority managed to arrive at those figures. Why not publish all the figures? Surely there should be guidelines stating that.

    There are questions concerning other aspects relating to the local authority. At no stage in the document or in the discussions has it entertained the idea that perhaps Waltham Forest simply does not transfer the real cost of education to other boroughs and does not reflect the true cost. It does not state what the real cost is and at no stage has it set about trying to calculate it or to say to other boroughs, “Let’s meet and discuss whether we can do a little more burden sharing.” The authority has talked generally about that, but has not said, “This is the real cost of educating a child at a special needs school in Waltham Forest. You’re paying only this much. Is there any chance that we could come to an agreement to share the burden?” At no stage has the authority attempted to do that.

    With regard to the consultation process, the document made some stark statements that I do not believe are true. I shall highlight one, although there are others. The consultation document states: “Although the borough has statemented a similar proportion of young people to other London LEAs, a rather greater proportion is educated in special schools than elsewhere.”

    The document did not give figures to back up that statement and it is not true. It is not borne out by any evidence that we can find. The percentage of statemented pupils in special schools in Waltham Forest is 42 per cent., the inner London average is 44 per cent. and the outer London average is 42 per cent. Comparing like with like in councils and boroughs that have similar problems, the figure for Hounslow is 41 per cent., Brent 43 per cent., Enfield 47 per cent., Ealing 55 per cent. and Lewisham 56 per cent.

    The document is full of statements, without any supporting evidence. No one can understand its rationale. It is almost as though the verdict is given first, followed by the evidence. It seems that minds were made up before entering the consultation process and I shall come to the reasons why in a moment.

    I quote from a letter sent by the head of pupil and student support services in Waltham Forest to a neighbouring borough, the London borough of Newham, which explains what the education authority—with EduAction—is trying to do. It states: “The transitional arrangements which would form part of the statutory notices have not yet been set out and cannot ’emerge’ until after June”, although it indicates that they have already been settled. It becomes clear what is going on from the penultimate paragraph of the letter, which states: “I would however want to take this opportunity of asking you not to put forward new admissions for the School from this point.”

    That is before decisions are supposed to have been taken. The borough is leaning on a neighbouring borough by indicating that there will not be a school or schools that can take further children, therefore it would be pointless to send them. The letter says of the Ofsted report, “we are driven by a poor LEA OFSTED inspection . . . “— which is not true. In general it is the case, yes, but most of the specific schools have reasonable, if not good, Ofsted inspections; only one is subject to special measures. It continues, stating, “re-organisation would be treated as a test of corporate governance.”

    The authority’s concern is that failure to meet the test by the Department for Education and Skills or by the Ofsted inspectors would lead to further pressure on the borough. It blames the Government and Ofsted for driving it into this position, thus indicating to Newham that the conclusion will be that it intends to shut certain schools.

    That explains my concerns about the consultation process. It is clear that the council has already arrived at its conclusions and the consultation process is, in essence, a way of covering that decision. Money is at the heart of it. The council declares itself in difficulties. It has had problems running its education policy. Ofsted was deeply critical of the education authority, as a result the company called EduAction now runs education in the borough. Throughout, the council is concerned about the money it believes it needs to run education generally and I want to explain why I have misgivings about it.

    The process should be very carefully undertaken if changes are to be made, as those involved are such special children and we cannot risk getting it wrong. There will be a dual effect on education in this and other boroughs, which will affect those pupils who are already being educated in mainstream schools. There has to be a serious rethink about how the process takes place, as once children with real special needs—learning disabilities, visual impairment, hearing impairment—are put into those schools things change dramatically. For example, about 47 per cent. to 50 per cent. of children at Joseph Clarke, a school for the visually impaired, go there because they are scarred by the difficulties they had in mainstream schooling. They are now in that school because they failed to make progress in mainstream schooling and have been hurt and damaged by that; no reference is made to that in the consultation process.

    The strength of parental support for such schools is awe-inspiring. The Joseph Clarke school asked parents for their views on the school, whether positive or negative, and 100 per cent. gave a positive response. I know of no other situation in which 100 per cent. of parents would respond to a notice from a school. Everyone knows how difficult it is to get parents to respond to requests from schools, but that is not the case at Joseph Clarke, or at the other special needs schools.

    It is important to note that special needs schools provide peripatetic services for the other schools. It is ironic that the lower number of statements in the borough is partly due to the fact that the outreach from those schools allows children to settle in mainstream schools without statements. If that service is removed, they will have to be statemented, and that will place much greater pressure on the mainstream schools. Mainstream schooling would need to be reorganised to meet those children’s needs—for example, there would need to be considerable debate on how mainstream schools could meet the Braille requirements of the visually impaired.

    I was talking recently to someone from Hawkswood school, who pointed out that teachers will often walk to the whiteboard—or blackboard, whatever they are using—and talk to the class while writing on the board. If a hearing impaired child is a lip reader, which is not always the case, once they break sight from the teacher, they have no idea what is going on in the class. How many times does a teacher go to the back of a class and explain over the heads of the children what they are looking at on the board at the front? Those are two very simple realities that most mainstream teachers would take for granted, but which they would not be able to do if their classes included hearing impaired children, because teachers must never break sight from a hearing impaired child. Such simple issues have been forgotten in this process. A huge amount of retraining of teachers would be required.

    Such examples show that there is a need to rethink this process, both nationally and locally. Dyslexia is arguably the most well known learning disability in schools. However, I have visited many mainstream schools—I am sure the Minister has also done so—that still struggle with the teaching of dyslexic children. Some of those schools are hopeless and others are good—the coverage is patchy. That problem has been known about for years, but we still struggle with it. How will we take children with much greater disabilities into those schools without a serious change in the way that mainstream schools are funded and supported?

    I believe that Waltham Forest council should stop and rethink the process. It should reconsider the options and hold an open consultation process, putting all the facts and figures on display, so that a reasoned and rational decision can be made. The way in which the council has behaved—in some cases quite rudely to parents who are concerned about what will happen to their children—has led parents and others living in the borough to lose faith in its ability to deal with the matter sensibly and rationally.

    I hope that the Minister will be able to explain some aspects of the matter to me. I do not want to make the issue a party political one, nor do I want special needs to be seen as party political. However, I believe that we need to have a proper, serious national debate about how we deal with children with special needs, and what we do about mainstream schooling. The Government, when they came to power, said that they wanted to move towards inclusion of children with special needs in mainstream schools. Superficially, that is a great idea—we would all want as many of those children as possible to be included in mainstream education. However, the devil lies in the detail of how that is done. How do we do that for children with real difficulties, and how do mainstream schools get funded? Who runs and controls that? The problem if we just have a general push for inclusion, is that cash-strapped local authorities see that as a way of putting up a shield behind which they find money that would otherwise not be there.

    Loose statements by the Secretary of State worry me. A few weeks ago he talked about the general funding of local education authorities and his concern that some of the money was not being passed down, although I gather that there has been disagreement with that. One matter on which he discussed a re-think is the way in which local authorities may be retaining that money to spend on capital, special needs or educating pupils in outside schools. He went on to say that those decisions had a major impact on the budget of individual schools. I am sure that he was not driving down and trying to say that special needs schools should therefore be closed, but my concern is that cash-strapped local authorities may see that as an opportunity to make savings and to transfer money into mainstream education, without serious consideration of the huge extra costs involved.

    How we treat children with special needs speaks volumes about us as a society and as Members of Parliament, and about the Government. It is important to think very carefully before making a major mistake. To see how disabilities are overcome and how those schools operate is not only moving but awe-inspiring and humbling. We owe it to those children, and to their parents and teachers, to think again. Waltham Forest should think again. I hope that the Government will initiate a real debate, and try to prevent councils, as an excuse for saving money, from closing special needs schools because inclusion is the order of the day.

  • Iain Duncan Smith – 2003 Statement on the Hutton Inquiry

    Iain Duncan Smith – 2003 Statement on the Hutton Inquiry

    The statement made by Iain Duncan Smith, the then Leader of the Opposition, on 10 August 2003.

    All of us were deeply shocked by the tragic death of Dr Kelly. Last week our thoughts were with his widow, his family and friends, as we paid our respects to a man who served his country as a Nobel-nominated scientist and a leading expert on weapons of mass destruction.

    Now that Dr Kelly’s funeral has taken place, attention will inevitably focus on the Hutton inquiry. Lord Hutton has a reputation for independence and integrity. I have every confidence that he will establish the precise circumstances of Dr Kelly’s death and the role that the Ministry of Defence – or even Downing Street itself – played in releasing Dr Kelly’s name to the media.

    The British people yearn for honest and straightforward politics. They are sick of behind the scenes briefings, and inappropriate or insensitive statements from senior officials and Ministers. Should Lord Hutton’s inquiry be subject to any attempts at political interference, it will only reinforce the public perception that the conduct of this Government is both unacceptable and undesirable.

    Even while the Government was publicly trying to show remorse at the tragic death of Dr Kelly, this last week behind the scenes we witnessed yet more of this Government’s black arts at work. The attempt by Tom Kelly, the Prime Minister’s official spokesman, to cheapen the record of Dr Kelly off the record, even before his funeral had taken place, was appalling. We should not simply allow it to be dismissed as an unauthorised mistake. It is what 10 Downing Street has been doing for far too long. Malicious briefings are part of their culture and Tom Kelly was only presenting the agreed counter-attack briefing from Number 10. The fault line goes right to the top. It is surely Mr Blair who must apologise. After all Tom Kelly, Alistair Campbell, and all of their spin-doctors ultimately work for him.

    This latest episode of Downing Street’s unwarranted involvement in the Dr Kelly affair is why I have asked for Lord Hutton to be given a remit that allows him to examine all the circumstances surrounding the death of Dr Kelly.

    I have argued that the processes leading up to the September dossier on Iraq’s weapons of mass destruction are inseparable from the Dr Kelly’s death, and I have repeatedly made the case for as wide and open an inquiry as possible. I also still believe it would be a good thing for Lord Hutton’s inquiry to have the power to take evidence under oath. The public demand this. The Government’s credibility depends on it. I hope that Lord Hutton’s inquiry is able to deliver it.

  • Iain Duncan Smith – 2003 Speech to the Compassionate Conservatism Conference

    Iain Duncan Smith – 2003 Speech to the Compassionate Conservatism Conference

    The speech made by Iain Duncan Smith, the then Leader of the Opposition, to the Compassionate Conservatism Conference held on 15 September 2003.

    Thank you all for coming to this ground-breaking conference.

    I’d particularly like to welcome people from some of the voluntary and charitable organisations that I – and members of the shadow cabinet – have been meeting over recent times. Thanks for being here today and for helping us to understand the nature of poverty in Britain and around the world.

    This is one of the most important conferences I’ve addressed since I became Conservative leader. One hundred and fifty Conservatives in their teens, twenties and thirties at a two-day conference on social justice. A third of the shadow cabinet – including most of its senior members – here to talk about the Conservative Party’s commitment to build one nation.

    I made that commitment after my first visit to Glasgow’s Easterhouse estate in February last year. Some dismissed my commitment as a publicity stunt. Some will dismiss this conference as a two-day publicity stunt. And in this in this age of spin, perhaps that’s understandable. But the people of Easterhouse and Gallowgate, of Hackney and Handsworth, of the many other hard-pressed communities all over this country have had a profound impact upon me.

    They have led me to refocus the Conservative Party on the challenges that most face these communities but which worry and threaten everyone. Britain’s left-behind communities are often thought of as Labour’s strongholds. Their heartlands. But there’s little heart in the way Labour neglects and forgets these communities.

    Communities suffering under the weight of drugs, crime, community breakdown and the other social challenges that the wealth and technology of our times have not defeated.

    The burdens of want and fear are blighting the lives of more and more people in this country. Casting a shadow over the lives of the many and dominating the lives of the few. In recent months Conservatives have announced policies on schools, policing, drug rehab and social entrepreneurship that will help people who find life a daily struggle.

    People whose struggle is greater because of this Labour government. Greater because of the humiliating complexity of Labour’s benefits system. Because of the taxes Labour have loaded onto the backs of the poorest workers. Because of Labour’s appeasement in the war on crime and drugs. Because of Labour’s pursuit of total politics rather than practical delivery.

    We won’t identify all of the answers to today’s social challenges over the next two days or even over the next few years. Problems that have grown over a generation will need the idealism, imagination and unfailing commitment of a new generation.

    Your generation.

    Today’s social challenges – the challenge of poverty in the twenty-first century – needs you.

    In your youth…

    In your idealism…

    In your creativity…

    You, in your solidarity with people for whom life is a struggle…

    You are the future of this Party.

    These challenges are your challenges.

    They’re the challenges of the many, not the few.

    The battle to overcome these challenges – in all their enormity – is the future of this Party.”That is why I have brought the issues and you together, in this conference, as a foundational act. We live in a world where poverty challenges our moral conscience and our security. It is a staggering thought that over the next twelve months, over ten million children around the world will die as a result of malnutrition.
    War, disease, terrorism and many forms of hardship and danger will feed on each other – claiming the lives of still more millions. And of those who do not die, the majority live in conditions that would be intolerable to anyone in this country.

    Against that background, there are those who say that poverty in Britain simply does not exist. But it does. Many people do not enjoy the opportunities and freedoms that most of us take for granted. I think of children growing up in homes where it’s still hard to make ends meet. I think of pensioners in communities ruled by criminal gangs. Poverty is real today for those children and pensioners. When I left Easterhouse, I committed the Conservative Party to a new mission with these words:

    A nation that leaves its vulnerable behind, diminishes its own future.

    Britain will never be all that it should be until opportunity and security mean something to people in Easterhouse.

    To make this country theirs as much as it is ours. That is a mission fit for the new century.”

    That is why there are two inseparable parts to our Fair Deal. No one held back and no one left behind. Opportunity and security. Aspiration and compassion.

    Talk is one thing, action is another. But, of course, action is the privilege of government, and so I want to spend some time on what this Government has done about poverty. To give credit where it’s due, Labour has not been inactive. They talk big on poverty and they spend big too. I‘m sure Labour politicians care about poverty but, sadly, something has gone terribly wrong with their policies. And we need to understand why if we are to avoid making the same mistakes. If we are to build an effective and distinctive Conservative programme of social justice.

    How you tackle poverty depends on how you define it. Currently the following definition is in use, ‘You’re poor if you live in a household with less than 60% of the median household income’. Now there are all sorts of problems with that definition. Above all the definition is exclusively financial and says nothing about the non-financial needs of every human being. It’s also interesting to note that Labour – the party of equality – has presided over growing inequality. According to the Government’s own statistics, Britain is more unequal under Tony Blair than at any time under Margaret Thatcher or John Major. Even under their own figures – Labour have failed.

    Ministers would say that they have focused on households with children – and that, according to their definition of poverty – and their figures – they have made real progress in this area. But they have missed their targets on child poverty and show little prospect of ever achieving them. The Labour MP Frank Field – as well as David Willetts – have shown that what progress has been made has been achieved by “picking off the easy ones.”

    In other words, the main effect of Labour’s policy is to shift some families from just below the poverty line to just above it. Now this helps ministers meet their targets, but it doesn’t do much to help those in the deepest need.

    Earlier this month a Save the Children report confirmed Frank Field’s analysis. The report’s authors were concerned with children in severe and persistent poverty – equivalent to household incomes of less than 40% of the average. Over one million children live in such households. The researchers were surprised to find that many, if not most, of these households are not on permanent benefits.

    An earlier report from the Institute for Fiscal Studies came to much the same conclusions: One in ten children, the report concluded, live in households on very low incomes – but almost half did not receive any of the main means-tested benefits. So it’s clear: Labour’s child poverty targets are being missed – and the limited progress that has been made has been achieved by focusing on the easiest cases. Those children deepest in poverty are those least likely to be helped.

    But we shouldn’t be surprised. The targets culture always encourages government to focus on the easy cases in order to fake success. The complexity of Labour’s benefits system may delight Gordon Brown but it is a nightmare for vulnerable families. They cannot cope with the humiliating bureaucracy that Labour has manufactured. The stigma of means-testing means that many families and pensioners who need help do not ask for it. The perversity of the whole system means that people who try to do the right thing are often punished.

    Save money and you’ll lose it. Seek work and, if you can’t master the complexity of the benefits system, you’ll find yourself out of pocket. The system is fundamentally flawed. Even the Government knows that something has gone terribly wrong with its policies. Let me read you this from a Cabinet Office report. It sounds as though it was written by Yes Minister’s Sir Humphrey Appleby, but it’s real:

    It is possible the efficacy limits of some key policy instruments are being reached.

    For example, the take-up of some means tested fiscal measures remain low and further means-tested support of in-work incomes could undermine the incentives of households to enhance their own earnings.

    Now, let me translate the gibberish into English:

    Our policy isn’t working.

    People aren’t getting the help they were promised.

    And if we carry on like this we’re going to trap even more people in poverty.

    Let’s not forget that we have reached these “efficacy limits” under the most favourable economic conditions. Tony Blair and Gordon Brown have enjoyed a golden legacy of record tax receipts. Which they have spent wasted. This compares to the record of Conservatives in Kent. Kent Conservatives have invested the good economic times of recent years to help families build free and independent lives through a range of innovative support programmes.

    Labour’s policies have left the poor even more dependent on the state for their incomes and the kind of public services they receive. Worse still – Gordon Brown has spread dependency up the income scale. And when times get harder, as they always do, that dependency will remain. But it will be harder for a weaker economy to afford. And that, in the end, will be Labour’s legacy to the poor. Dependence not independence.

    We can’t blame this Government for inventing the flaws in the system. They have pumped more money into these flaws than any government in history, but there is nothing new about the dependency culture. Or about means testing. Nothing new about the poverty trap.

    Since the war, unimaginable sums of money have been funnelled through the benefits system. Undreamt of wealth has opened up healthcare, education, transport and culture to all sections of society. And yet social mobility is less today than it was in the 1950s. After five decades of state-led welfare a child born at the bottom of the pile is more, not less, likely to stay there.

    This is what Patricia Hewitt, a serving member of Tony Blair’s Cabinet, said to the Fabian Society back in June:

    “Today [historians] would still be horrified by the gulf in health, education and life chances between the child growing up in an impoverished council estate – with a secondary school where only 10 or 15 kids in a class of 100 can expect to get five GCSEs – and the child of the leafy suburbs heading confidently for university and a professional career.”

    What she is describing is the final failure of socialism. The final failure of the know-all, centralised state. The state that Mr Blair runs from Downing Street.

    A failure all the more dramatic if one looks beyond purely financial measures of poverty.

    This is not a tactic for avoiding the issue of benefit levels. Families with young children, pensioners, people with serious disabilities, the sick, those looking for work – Conservatives will always ensure a fair income for these deserving causes. But we also know that there is no conceivable increase in benefits that would change some of the fundamental facts of poverty. A few extra pounds can make a big difference to a tight budget. But it won’t buy you security when you’re too frightened to let your kids play outside. Or peace, when your home is a noise-polluted tower block. Or friends, when vital support networks have been smashed by the breakdown of family and community. Or self-respect, when you’re trapped in dependency. Or ambition, when your child’s school descends into chaos.

    Surely, if the fight against poverty is to mean anything, then it has to be as much about peace, community and self-respect as it is about money.

    And it also has to be about turning round the public services on which we all depend, but on which the poor depend most of all.

    I have devoted the greater part of this speech to the problems dogging the fight against poverty. Governments have a role to play in fighting poverty and the next Conservative government will take its responsibilities seriously. But government cannot solve the problem of poverty on its own. Securing a fair deal for everyone is a shared task. A task for government, businesses, families and communities. Conservatives have, therefore, a project.

    A mission to replace the welfare state with a welfare society. It was William Beveridge who said –
    The making of a good society depends not on the state but on the citizens, acting individually or in free association with one another…

    The happiness or unhappiness of the society in which we live depends upon ourselves as citizens, not on the instrument of political power which we call the state.”

    Beveridge was never in favour of a monolithic welfare state and issued a prophetic warning against any policy which, in his words, caused “the whole field of security against misfortune, once the domain of voluntary Mutual Aid, [to be] divided between the State and private business conducted for gain.”

    The post-war Labour Government ignored that warning.

    That was a mistake of historic proportions – the consequences of which we still live with today. We must not live with it tomorrow. We can begin to build a welfare society.

    Let me give you a practical example of what I mean. In July, I visited Tabernacle, an inner-city school, mainly serving the African and Caribbean Community. Because the parents were fed up with the way the state system had failed their children they got together and started their own school. A school under the inspired leadership of Paulette and Derrick Wilson. Standards of discipline and academic achievement are high. The teachers love teaching there.

    The pupils love learning there. And the parents, many of modest means, make the necessary sacrifices. And yet this school is under threat.

    The Government is set to impose a crippling regime of inspection fees that would force the school to close.

    Conservatives oppose this disgraceful attack on high quality inner-city education. Our policy is not only to systematically reduce the regulatory burden on schools like Tabernacle, but to actively support their foundation and expansion. Our State Scholarships policy will give every parent the right to send their child to a school that’s right for them and consistent with the family’s values. It will support schools like the Tabernacle and create more of them. We are determined that no child should be left behind in a failing school.

    Tabernacle School is just one example of what voluntary action can achieve for our nation. Indeed, there isn’t a single social challenge to which someone, somewhere hasn’t found an answer. Social entrepreneurs are at work in every area of public policy. And we’ll be hearing from some of these trailblazing projects over the next two days. Projects which have inspired our green paper, Sixty Million Citizens, which contains sixteen proposals aimed at unlocking the full potential of Britain’s civil society.

    In a moment, Greg Clark, our Director of Policy, will explain how Conservatives would open up our public services to this spirit of social renewal. But I believe that the same principle – of Government enabling people to find their own solutions – can apply to the social security system too.

    David Willetts, the Shadow Secretary of State for Work and Pensions, will be here tomorrow to talk about his latest thinking in this area. Thinking informed by the One Nation Hearings he and other members of the shadow cabinet have held in disadvantaged parts of Britain.

    Also speaking will be Sir Sandy Bruce Lockhart, the Leader of Kent County Council, and Simon Milton, the leader of Westminster City Council – both of whom are proving that Conservatives can take on the dependency culture and win for the most vulnerable people in their communities. I thank both of them for their work.

    No serious discussion of social justice can ignore the injustice faced by communities plagued by crime. We often hear about poverty as a cause of crime. It’s time we heard more about crime as a cause of poverty. People in social housing are twice as likely to be burgled as homeowners. Residents of flats are twice as likely to have a vehicle stolen than those in detached homes. The unemployed are twice as likely to suffer violent crime as those in work. There can be no end to poverty without a start to security.

    That is why the next Conservative Government will recruit 40,000 extra police officers to take back the streets for law-abiding people who, today, are afraid to walk them. Our plan for a ten-fold increase in the number of drug rehabilitation places – to 20,000 – will give young people the chance to escape from a life of addiction and crime. I’m delighted that the Shadow Home Secretary, Oliver Letwin, will be here this evening to tell you more about our law and order policies.

    Crime is not the only cause of poverty. Drugs and family instability can also damage a child’s chances in life. Labour is too embarrassed to face up to these issues. They hide behind a screen of political correctness. Conservatives must not be afraid to talk about these and other causes of poverty. We must be intolerant of discrimination. We will have the opportunity to talk about the face of poverty within Britain throughout this conference. And the fact that deeper exists beyond the shores of our country. If there is a pressing need for a new approach to poverty at home, then there is a desperate need for a new approach to third world poverty. Statist, and superstatist, solutions have not worked.

    But as we’ll hear from Caroline Spelman, the Shadow Secretary of State for International Development, Conservative solutions do have a chance. Through our emphasis on free trader for third world producers. On fighting corruption and promoting good governance. On trusting local agencies and local people as the only people capable of delivering sustainable development. In particular, Conservatives will put greater trust in the extraordinary work of Britain’s aid agencies and fair-trade enterprises – including CaféDirect and Traidcraft – both of which are kindly with us today.

    On my first visit to Easterhouse, someone shouted out:

    “What are you doing here? This is a Labour area.”

    “Yes,” I said, “and look around you.”

    There will be others that say:

    “Why are you talking about poverty? That’s a Labour issue.”

    And to them I’ll say “yes, and look around you.”

    Labour think they have a monopoly on compassion. And this monopoly – like all monopolies – has hurt the people it dominates. Poverty is too important an issue to leave to Labour. It’s too important to leave to any one political party.

    Labour is failing because it thinks poverty is only about money. Yet, as I’ve shown, even on its own measure, Labour is failing. Defeating poverty is about more than spending money. It’s about living in a secure neighbourhood. But today – under Labour – violent crime is rising. It’s about fighting the drug menace that blights our children’s lives. Yet, today, families desperate to get their children off drugs find that there aren’t enough rehabilitation places available.

    It’s about order and structure in schools. Yet Labour have taken disciplinary powers away from headteachers. Most of all it’s about giving people control over their own lives. But over recent years Labour’s massive centralised state has increased dependency and left far too many people and communities unable to take key decisions about how they lead their lives.

    That’s why a future Conservative government will be different. We’ll protect the incomes of vulnerable people but we’ll do much more. 40,000 extra police officers will reclaim the streets from criminals and drug pushers. 20,000 drug rehabilitation places will give young people a second chance in life. Our State Scholarships scheme will give parents in the inner cities the means to send their children to better schools. Our proposals on the voluntary sector will greatly increase the opportunities available to community-based social entrepreneurs. These and other policies will make a real difference to the hard-pressed communities that I’ve visited throughout my time as Conservative leader.

    I don’t expect to storm the Labour heartlands at the next election. But unless Conservatives can show that we will govern for the whole nation, we will neither win nor deserve to. That is why our fair deal is for everyone. No one held back. No one left behind.