Tag: Speeches

  • Jeremy Wright – 2016 Speech on the Public Interest

    jeremywright

    Below is the text of the speech made by Jeremy Wright, the Attorney General, at University College in London on 8 February 2016.

    I welcome the opportunity to speak to you today, here at UCL.

    Ronald Dworkin, who challenged and entranced generations of students and colleagues here, said that law is a branch of morality.

    He was right.

    And although it may not always look like it, politics is another branch of morality.

    And today, without seeking to reach Professor Dworkin’s intellectual heights, I want to talk about one way in which the common purpose of politics and law is exemplified by the office that I hold: that of Attorney General.

    The aspect I want to focus on is my role, as Attorney General, in relation to the public interest.

    This is not a function of the job that receives much comment, even within the legal world.

    But I want to set out why I see it as an important part of my role.

    And I would go even further: it is what puts the Attorney General at the heart of our constitution.

    It is essentially a way in which the Attorney, occupying his or her unique position between and within both the political and legal worlds, upholds a well-functioning and fair justice system.

    That matters to government.

    But it also matters to the Courts, and the legal profession as a whole.

    I want to say why I think that is. And then to say something about who, in a well-functioning justice system, is best-placed to decide what the public interest is.

    So first, why does the role of the Attorney General matter?

    The Constitutional Role of the Attorney General
    The principal role of the Attorney, alongside the other UK Law Officers – the Solicitor General for England and Wales, and the Advocate General for Scotland – is to uphold and promote the Rule of Law through his or her constitutional functions.

    So let’s begin with some history.

    Last year, the common law world celebrated the 800th anniversary of Magna Carta.

    I was honoured to be part of those celebrations.

    The post of Attorney General must be one of very few which is almost as old as Magna Carta itself.

    Last year we also celebrated to slightly less fanfare 700 years since the first formal appointment recorded of a specially designated King’s Attorney, in the year 1315 – although there are records of individuals appointed to “sue the King’s pleas” as early as 1243, within living memory of Magna Carta.

    And the title of Attorney General is first recorded in the 15th century.

    All these centuries later, we are being told by independent observers that the Attorney General has an increasingly important role in relation to the Rule of Law in our constitutional arrangements.

    That is the view for example of the Constitution Committee of our House of Lords. The Law Officers are government ministers, the Attorney General being a cabinet-level appointment. I am the principal legal adviser to government at a ministerial level.

    The Ministerial Code provides that the Law Officers must be consulted before the government is committed to critical decisions involving legal considerations.

    Advising the cabinet, and participating in cabinet discussions, on legal and constitutional questions is the most direct way in which I ensure that the government understands its legal and constitutional obligations.

    I am also head of profession for lawyers within government, and as such have oversight for the legal advice given to government by all government lawyers.

    In other words, I am responsible, ultimately, for ensuring that the government’s decisions and actions respect and uphold the Rule of Law.

    The Law Officers’ public interest functions

    But that is not the only aspect of my role.

    I have other constitutionally significant functions, many inherent, others granted to me in statute, in relation to the public interest in the Rule of Law.

    I exercise these independently of my government functions.

    They include instituting proceedings for contempt of court, considering applications for fresh inquests and referring potentially unduly lenient sentences to the Court of Appeal for resentencing. I have a role in relation to charitable interests, and can intervene in cases before the High Court and the Charity Tribunal.

    These functions differ considerably in nature and scope.

    But their common feature is that they are exceptional and direct interventions in the functioning of the justice system in the interests of supporting the system itself, and maintaining public confidence in the administration of justice.

    They are not normal functions of the executive.

    But they are well-suited to be exercised by the Law Officers, who have a foot in both the legal and political worlds.

    As Sir Elwyn Jones, Attorney General from 1964 to 1970, said:

    The Attorney is the protector … of the public interest generally. This aspect of his duties had a very early origin. He has for long been the proper person to take legal proceedings where the interests of the public are endangered, or acts tending to public injury are done without authority.

    The judiciary have shared that view.

    Lord Wilberforce, in Gouriet v AG [1978], said:

    In all these matters the Attorney-General’s role is to seek a just balance between often conflicting public interests. The functions referred to above may be held by the Attorney as an inherent part of his ancient office or may have been conferred upon him by statute. Thus Parliament has again and again recognised his particular role in this sphere of seeking to balance the public interest in matters of the character which have been mentioned. In doing so it has reinforced his inherent powers.

    And these public interest functions are not amenable to judicial review. In 1902, in the case of London County Council v AG [1902], the Lord Chancellor, the Earl of Halsbury (no less) said:

    In a case where as a part of his public duty he has a right to intervene … the determination of the question whether it is a proper case for the Attorney-General to proceed in, is a matter entirely beyond the jurisdiction of this or any other Court. It is a question which the law of this country has made to reside exclusively in the Attorney-General.

    My superintendence of the independent prosecuting authorities is also a public interest function.

    It requires me to uphold a sensitive constitutional balance, supporting and defending the operational independence of the prosecutors, whilst at the same time consistently promoting their democratic accountabilities both in government and in Parliament.

    It also specifically requires me, in certain cases, to take responsibility for ensuring that the public interest is taken into account when deciding whether to bring or discontinue prosecutions.

    The unifying characteristic of all these functions is that they are a ‘backstop’ to prevent or remedy injustice in or pressures on other parts of the justice system.

    And that is something, as I have said, that the Law Officers are uniquely placed to do.

    A few examples will help to illustrate this point.

    The ULS scheme

    One of the functions of my office is the operation of the Unduly Lenient Sentence (ULS) scheme. In the event that someone (whether or not they have been involved in the case) feels the sentence awarded for a criminal offence to be too low, they are able to refer the matter to my office. If the offence is one of those in the ULS scheme and it is referred to us within the 28 day statutory time limit the Solicitor General or I will personally consider whether it is appropriate to refer the sentence to the Court of Appeal.

    These are public interest decisions, not political ones, and it is essential that Law Officers are trusted to refer what they should and not to refer what they shouldn’t – to make these decisions as lawyers, not as politicians. Of course, these days it seems anyone who is even part politician needs to offer more than just reassurance on a matter of trust, so let me offer some evidence.

    On the subject of referring what we should, let’s take a recent case – that of Sarah Sands, convicted of manslaughter for killing a convicted paedophile. Much of the public and political audience doubted she should have been convicted at all, let alone that her sentence of three and a half years should have been increased. My office received comments from members of the public that the sentence was too long, as well as those complaining that it was too short. As an offence within the scheme I was required as a lawyer to consider the sentence in law, and it seemed to me to be unduly lenient. So I referred that sentence and the Court of Appeal subsequently agreed and increased it to seven and a half years. If I was acting on the basis of political expediency, I may have done something different.

    On not referring to the Court of Appeal what we shouldn’t, our approach is clear from the outcomes of the cases that have been referred. Of 674 cases referred to my office in 2014 only 122 were referred to the Court of Appeal. That’s a fairly small percentage of cases brought to our attention. And that percentage has remained constant even as the volumes of referrals have increased.

    Of those 122, 117 were granted leave to be heard; and of those 117, the Court of Appeal agreed with the Law Officers and found in 109 of the cases that the sentence was unduly lenient. Were referrals made for reasons of political expediency, the outcomes may very well have been different.

    I am rather proud of those figures – they show we are exercising this power where it is really necessary to do so, and that we generally get our judgments made in the public interest right. But it is also worth saying that the power is there to rectify problem cases which are far better avoided in the first place. My ambition is for us not to have to exercise it nearly as much, because cases where it is necessary to challenge a sentence become fewer and fewer – and we work together to bring clarity to the sentencing framework and provide consistency in sentencing decisions.

    It is also important to mention that any decision to refer is part of a continuing process; it does not stop at the point of referral. When a case is referred to the Court of Appeal we write to those representing the offender to explain the process, and invite them to make submissions. On occasion, we receive information that even leads to the reference being withdrawn, as happened in a case very recently.

    Inquests

    The ULS scheme is an alternative to a more general right for prosecutors or victims to appeal against a sentence. As such, it represents a filter mechanism to prevent ill founded cases clogging up the criminal justice system. It helps the Courts and the judges by ensuring their time is spent hearing deserving cases. Other of my public interest functions fit this bill too.

    For example, the Law Officers consider requests by an interested party – often but not always the family of the deceased – who feels that an inquest should have been held but wasn’t, or that the inquest which did take place was in some way flawed.

    If I agree, then I will grant permission for an application to be made in the High Court for a fresh inquest.

    In considering sentences or inquests, the Law Officers are responsible for determining whether a case should be put before a Court.

    That is a question that in other areas might be considered by the Court itself, through a permission stage, as is the case in applications for judicial review, for example.

    But in these instances Parliament has said the Attorney General must grant permission before the Court can consider it. The decision the Law Officers take is not just whether previous sentencing decisions or inquests were legally flawed, we also look at whether there is a public interest in reopening matters.

    Let me emphasise again that we take these decisions extremely seriously and can only decide where the balance of the public interest lies by considering all aspects of it. These are executive powers to make rare exceptions to the important principles of legal certainty and the finality of court decisions. They are there for an important purpose. But they must be exercised circumspectly.

    So for example, in a request for a fresh inquest: we will consider the views of the person requesting the fresh inquest; we will seek and consider the views of the other interested parties, including the coroner; and we will then put the views of the interested parties back before the person making the request.

    Careful consideration is given to the representations of all concerned before I take a decision. And again, that decision is a public interest one, not a political one. And again let me offer some evidence of that.

    Recently, I granted permission to allow an application for a fresh inquest relating to deaths in Loughgall in Northern Ireland in 1987 potentially involving British soldiers, RUC officers, suspected IRA members and civilians. That decision was made at the height of fractious talks between unionists and nationalist parties, and so its timing was at the very least extremely inconvenient politically. Nevertheless it was the right legal decision, and it was the decision I took.

    Let me turn to one more example of public interest decisions for the Law Officers, again in the Criminal Justice sphere.

    Consents to prosecution

    There are certain offences which cannot be prosecuted without the consent of the Law Officers. The list is not obviously a logical one – the offences for which consent is required are many and diverse covering areas from agricultural credits to war crimes.

    Some of the offences are rarely prosecuted, others – such as terrorism offences – are sadly and increasingly far more common.

    Generally speaking, prosecutors are perfectly able to decide whether a prosecution should be brought and any consent required is that of the Director of Public Prosecutions.

    However, in some limited instances a further check is needed as to whether prosecution is in the public interest.

    Or it may be that a vexatious private prosecution has been launched and it is appropriate for the Law Officers to step in to prevent the Criminal Justice system from being abused.

    In acting as that check, the Law Officers bring consistency of approach. We are able to give consideration to the public interest. And because of our special position, we are able to consult colleagues in government when important issues of public policy or international affairs are concerned, for example in prosecutions for official secrets or hijacking offences.

    And of course we are also accountable to Parliament for the decisions we make.

    This underlines Parliament’s role in holding the government to account in relation to the public interest.

    Other useful backstops to secure proper functioning of Courts
    Finally, my office also has a series of functions in respect of the Court process itself, one of which is policing contempt of court.

    If an editor is planning to publish, or does indeed publish, an article or other piece of media which causes a substantial risk of serious prejudice to on-going court proceedings, then it is my office that will intervene.

    Another function is the appointment of an advocate to the Court; or amicus curiae. So if a novel and important point of law arises in proceedings in which the Court feels that it would benefit from the assistance of argument from independent Counsel, then it is my office that will consider whether independent Counsel should be appointed as an advocate to the Court. These functions are interesting because they frequently involve judges coming directly to me asking for safeguards to the trial process; an unusual intersection between the judiciary and the executive.

    In my view it is entirely right that there is some central oversight of decisions whether to instigate contempt proceedings, or to appoint advocates to the Court.

    Having that central oversight ensures both that a consistent threshold is applied and that questions of broader public interest can be considered.

    The Courts and indeed prosecutors may simply not have the information or expertise to come to a view where there is a difficult public interest balance to be made.

    There are a number of other public interest functions – I will spare you a recital of the whole list. I would though like to take some credit on behalf of the AGO for the unsung work we do in protecting the justice system, and the public purse, from vexatious litigation.

    But the list of functions is not set in stone, and as any minister must, I have to constantly review whether public money is being spent appropriately.

    My role in relation to charities is an important one.

    But we also now have a highly-regarded and professional Charity Commission. Some of my functions overlap with theirs. And I think there is scope for the Commission to perform more of its functions without interference from me where that is the right approach.

    A question for another day.

    Who decides?

    A question I want to raise today is one which occurs in many areas of my role, but has particular resonance given my public interest functions: within our constitutional and legal arrangements, who should decide what constitutes the public interest?

    This is a topical question.

    It goes to issues such as, “who should have the final say on whether information should be released under the Freedom of Information Act?”, or “who should approve warrants to authorise intrusive surveillance?”. I will come back to both of those.

    But first let me say that when it comes to matters of the public interest, there is a tone to the debate sometimes that government is partisan, making decisions for its own benefit. It is sometimes said that only judges are sufficiently detached to be able to take decisions which truly balance competing public interests.

    But the reality is more complex than that.

    There are both constitutional and practical reasons why it is not necessarily Courts that are best placed to take decisions involving matters of public interest.

    In my view there are circumstances where it is clearly right that decisions on matters of public interest should be taken by an elected, accountable politician, rather than by a Court. I hope we can all agree on where some of those areas lie – how to carry out the United Kingdom’s foreign relations for example. Or our national security. My question for today is how much further those circumstances might extend? I believe we should ask ourselves where else that logic might apply.

    Example 1 – Evans

    Let’s look at one possibility. The future of the Freedom of Information Act is especially topical at the moment.

    An Independent Commission on Freedom of Information (FOI) is considering whether the current legislation strikes the right balance between the public interest in transparency and accountability on the one hand, and the need for sensitive information to be robustly protected on the other.

    I won’t comment on that – the government will consider its position once the Commission has reported.

    But one of the reasons the Commission was set up was to look at the act following the case of Evans – the so called ‘Prince Charles letters’ case.

    In that case, the Supreme Court considered the operation of the power in the act for ministers to decide not to release information even if the Information Commissioner or tribunal said that it should be disclosed.

    Section 53 of the FOI Act gave cabinet ministers the power to use a ‘veto’ to prevent the disclosure of information.

    This ‘veto’ has been used very sparingly – only 7 times since 2005. To put that in context, there were some 263 appeals to the ICO in relation to central government FOI decisions in 2014/15 alone. The veto is a measure of last resort to ensure that sensitive information is not released in circumstances in which the government considers that it would be against the public interest to do so.

    This was at least how the position was understood prior to the judgment.

    Evans was a case in which, unusually, an Attorney General had exercised the veto, not as the holder of information himself, but because the material belonged in papers of a previous administration of a different political colour, and the Law Officers had a role as guardians of the public interest aside from their government functions. The key issue in the case was the constitutional one: who in the end decides what is in the public interest. The Supreme Court held that the act could not have been read as permitting the executive to take a different view of the public interest to that of a tribunal.

    I should make clear that of course, the government complied with the Court’s decision and released the letters in question.

    But in my view, Parliament intended that the exercise of the veto should be an executive function with democratic accountability for its use through Parliament. It constitutes a rare, but as I have set out far from unprecedented, recognition that the courts cannot constitutionally be the sole guardians of the public interest, and that there are important exceptions to the principle that Courts’ views are final. Of course, the exercise of the veto would always be subject to the checks and balances of judicial review, so the veto was no sort of ouster clause. But a proposition that complex balances of the public interest – which are after all the daily business of modern government – can only be done by courts is plainly wrong.

    The judgments in Evans, which the Supreme Court clearly found a difficult case, challenge all of us who have a part to play in maintaining the balance of our constitution, to reflect on the respective roles of judges, ministers, and indeed Parliament, in defining and defending the public interest.

    The respective roles of ministers and judges have also been much debated in relation to the approval of warrants. This brings me on to my next example in determining where the public interest lies: the Investigatory Powers Bill.

    Example 2 – The Investigatory Powers Bill

    Many of you will be aware of the Investigatory Powers Bill; it was published in draft form towards the end of last year.

    The bill contains a revised oversight regime including a novel authorisation model for the use of interception warrants.

    This model builds on recommendations made by David Anderson QC, the Independent Reviewer of Terrorism Legislation, in his June 2015 report: “A Question of Trust”.

    The model is just one of a number of safeguards designed to ensure that the powers in the bill are completely transparent and that the public can have confidence in their use.

    Under the authorisation model, a senior judicial commissioner would review warranted powers on judicial review principles. In all but a small number of urgent cases, the review will take place before the warrant is issued. Importantly, judicial commissioners would have the power to quash warrants where they see fit.

    This would mean that a warrant authorised by the Secretary of State must also be approved by a judicial commissioner, almost always in advance.

    This authorisation model strikes a balance between democratic accountability and independent judicial scrutiny of the exercise of the most intrusive powers. Secretaries of State will have the powers to grant warrants, and that must be right: ministers are ultimately accountable to Parliament and the public for national security matters. However, this ‘double lock’ mechanism retains accountability while also ensuring independent judicial examination of the government’s actions.

    And the system is a good example of where ministers and the Court can have different but complementary roles.

    Conclusion

    I hope I’ve shone a light on some of the areas where the Attorney General exercises public interest functions, designed to work with the Courts.

    And in some of those areas, I believe the Attorney is better-placed than the Courts, or indeed other ministers, to decide what the public interest is.

    I mentioned when I started this speech that I also wanted to say something about who is best placed to decide matters of public interest.

    As the examples I have given show, decisions on matters of public interest are not always straightforward.

    There is often a question of whether political accountability or judicial independence is the more appropriate safeguard.

    These questions have exercised Attorneys past.

    And they will continue to be relevant to problems confronted by me and my successors, I have no doubt.

    They illustrate that the role of Attorney General is a unique one in our constitution; they illustrate too that it can be difficult.

    But in my view it’s an essential one, and one that it’s a privilege to perform.

  • Michael Gove – 2016 Statement on Changes to Criminal Legal Aid Contracting

    michaelgove

    Below is the text of the statement made by Michael Gove, the Secretary of State for Justice and Lord Chancellor, to the House of Commons on 28 January 2016.

    My department is committed to upholding the rule of law, by defending the independence of the judiciary, guaranteeing access to justice and supporting the highest quality advocacy in our courts.

    My department has also had to play its part in the broader requirement to reduce our budget deficit and bring our national finances back into balance. Economies have had to be made in every area of expenditure, but steps have been taken to ensure our judiciary remain the best in the world, to provide a fair system of publicly-funded legal support and to explore how we can strengthen the quality of advocacy in all our courts, but most particularly in criminal proceedings.

    In the last Parliament spending on legal aid was reduced from £2.4 billion to £1.6 billion. That reduction was achieved by my predecessors following consultation with the profession and they were both determined to ensure those most in need were not denied public support. Indeed at the start of this Parliament expenditure on legal aid per capita was more generous than any other EU nation or comparable common law jurisdiction. I would like to place on the record my gratitude for the determined, yet sensitive, way in which my predecessors pursued these economies.

    Further changes to the legal aid system, agreed in the last Parliament, were due to be implemented in this. One of those changes, a further reduction in the advocacy fees paid to barristers and solicitor advocates was not implemented by my department while we conducted work to ensure the quality of advocacy would not be adversely affected by any change. My department is particularly committed to retaining a vibrant independent bar. The health of the independent criminal bar in England and Wales is an important guarantor of good advocacy, and Sir Bill Jeffrey’s report, commissioned by my predecessor, described the independent criminal bar as a ‘substantial national asset’. Without quality advocacy in the criminal courts the risk of injustice is greater. The liberty, and reputation, of any individual who finds themselves in court depends on a high quality advocate making their case effectively, and testing the case against them rigorously. That is why my department has been so grateful to the Bar Council, circuit leaders and others for their work to help inform our review of advocacy quality.

    Another change, which has been pursued, is the move to reduce litigation fees and encourage greater efficiency in the provision of litigation services.

    The first reduction to litigation fees of 8.75% occurred in March 2014. The second occurred in July 2015. At the time the fee reduction was first proposed the market was made up of around 1,600 legal aid firms and it was proposed to drive greater efficiency and consolidation within the market by simple price competition for legal aid contracts.

    The legal profession opposed this model and after careful negotiation my predecessor decided to adopt a system known as ‘dual contracting’.

    Under the dual contracting system, two types of contract were to be awarded to criminal legal aid firms.

    An unlimited number of contracts for ‘own client’ work based on basic financial and fitness to practise checks – in others words continued payment for representing existing and known clients.
    And a total of 527 ‘duty’ contracts awarded by competition, giving firms the right to be on the duty legal aid rota in 85 geographical procurement areas around the country, with between 4 and 17 contracts awarded in each. In other words, these contracts would allow a limited number of firms the chance to represent new entrants to the criminal justice system.
    The dual contracting model was a carefully designed initiative from my department that aimed to meet concerns expressed by the legal profession about price competition.

    But over time, opposition to this model has been articulated with increasing force and passion by both solicitors and barristers.

    Many solicitors firms feared that the award of a limited number of “dual” contracts – with a restriction therefore on who could participate in the duty legal aid rota would lead to a less diverse and competitive market. Many barristers feared that the commercial model being designed by some solicitors’ firms would lead to a diminution in choice and potentially quality.

    And many also pointed out that a process of natural consolidation was taking place in the criminal legal aid market, as crime reduced and natural competition took place.

    These arguments weighed heavily with me, but the need to deliver reductions in expenditure rapidly, and thus force the pace of consolidation, was stronger.

    Since July 2015, however, two significant developments have occurred.

    Firstly, thanks to economies I have made elsewhere in my department HM Treasury have given me a settlement which allows me greater flexibility in the allocation of funds for legal aid.

    Secondly, it has become clear, following legal challenges mounted against our procurement process, that there are real problems in pressing ahead as initially proposed.

    My Department currently faces 99 separate legal challenges over the procurement process, which has required us, anyway, to stay the award of new contracts at least until April.

    In addition, a judicial review challenging the entire process has raised additional implementation challenges. Given how delicately balanced the arguments have always been, how important it is to ensure we maintain choice and quality in the provision of legal services, how supportive HMT have been of our broader reform agenda and how important it is to provide as much certainty as possible in the face of legal challenge, I have decided not to go ahead with the introduction of the dual contracting system. I have also decided to suspend, for a period of 12 months from 1 April 2016, the second fee cut which was introduced in July last year. As a consequence of these decisions the new fee structure linked to the new contracts will not be introduced. My decision is driven in part by the recognition that the litigation will be time consuming and costly for all parties, whatever the outcome. I do not want my department and the legal aid market to face months if not years of continuing uncertainty, and expensive litigation, while it is heard.

    The Legal Aid Agency will extend current contracts so as to ensure continuing service until replacement contracts come into force later this year. I will review progress on joint work with the profession to improve efficiency and quality at the beginning of 2017, before returning to any decisions on the second fee reduction and market consolidation before April 2017.

    By not pressing ahead with dual contracting, and suspending the fee cut, at this stage we will, I hope, make it easier in all circumstances for litigators to instruct the best advocates, enhancing the quality of representation in our courts.

    I will also bring forward proposals to ensure the Legal Aid Agency can better support high quality advocacy. Furthermore, I intend to appoint an advisory council of solicitors and barristers to help me explore how we can reduce unnecessary bureaucratic costs, eliminate waste and end continuing abuses within the current legal aid system. More details will follow in due course.

    We have an ambitious programme of reform to our courts planned for the rest of this Parliament. It is designed to make justice swifter and more certain. The reforms to our legal system, including taking more work out of courts, moving from a paper-based system to a digital platform, tackle unnecessary costs and reduce harmful delay. Criminal legal aid solicitors perform a vital role in our justice system and these reforms will need the support of all in the legal profession. But these reforms also provide an opportunity for the legal profession to offer better access to higher quality advice and representation to more individuals.

  • Sajid Javid – 2016 Statement on the Enterprise Bill

    CBI Conference

    Below is the text of the statement made by Sajid Javid, the Secretary of State for Business, Innovation and Skills, to the House of Commons on 2 February 2016.

    I beg to move that the Bill be now read a second time.

    On my Christmas reading list was a book by Labour’s policy adviser, Andrew Fisher. I am not going to throw a copy at the hon. Member for Wallasey (Ms Eagle), because I am sure that she already has a copy of her own.

    In his book [he says]:

    “The sole focus of economic debate today seems to be about what leads to economic growth.”

    “Why”, he asks, “are we so obsessed with economic growth?”

    In the blurb, the shadow Chancellor called it the best thing he has read in years. On the Government Benches we know why sensible people are obsessed with economic growth: it means more jobs, it means prosperity, it lifts people out of poverty, it pays for our health service and our schools, and it allows us to invest in the future of our nation.

    We know that growth is not created by politicians or by civil servants. It is not delivered by Whitehall diktat, or by printing money, or by creating an ever-expanding public sector.

    Economic growth comes from one thing and one thing alone.

    Successful private businesses.

    The role of Government is to create an environment in which businesses can thrive. So, while Labour’s policy chief dreams of handing taxpayers’ money to trade unions so they can buy out companies, this Government are taking action to back British business.

    We’ve cut corporation tax and red tape.

    We’re devolving the power to cut business rates and have doubled small business rate relief.

    We’ve lifted nearly half a million employers out of National Insurance contributions.

    We’ve supported more than 30,000 companies with Start-Up Loans.

    And we’ve just launched a 5-year programme to help British businesses make the most of export opportunities around the world.

    All this work is paying off.

    In 2016, Britain is home to more private businesses than at any point in history.

    Almost 5 and a half million of them.

    Over the past 8 years more than 600,000 people have made the courageous decision to become self-employed, many in highly skilled professions.

    But I want to do more.

    Because, for my sins, I am obsessed with economic growth…

    That’s why I’m proud to have introduced the Bill that’s before the House today.

    The Enterprise Bill will strengthen the UK’s position as one of the best places in the world to start and grow a business.

    It will cut the red tape that too often strangles growth.

    It will support investment in the skills that British businesses need to be competitive now and in the future.

    And it will help deliver the economic growth and security that benefits every single one of us in this country.

    Deregulation and Sunday trading

    Let me turn to deregulation.

    According to the British Chambers of Commerce, regulations introduced by the last Labour Government cost British businesses almost £90 billion. No doubt this contributed to Labour’s great recession, destroying thousands and thousands of jobs across the country. That is a staggering burden for any employer, but it is a particular problem for Britain’s millions of small businesses, because when people are running their own company they do not just have one job: they have to be a manager; they have to be an accountant; they are in charge of human resources and procurement; they have to issue and chase invoices, source new suppliers and arrange marketing and advertising.

    All that on top of the day job.

    There are not enough hours in the day as it is.

    And the last thing you need is the government on your back, weighing you down with petty rules and regulations.

    One way in which we certainly do help businesses is through further deregulation. That is why in the last Parliament we scrapped £10 billion of Labour’s red tape. We have already committed to scrapping another £10 billion between now and 2020.

    But business owners have told us that the actions of regulators are just as important as the content of regulations.

    So this Bill will extend the deregulation target to include statutory regulators.

    And it will increase transparency, with a new annual reporting requirement for regulators subject to the growth duty and regulators’ code.

    It will also extend the hugely successful Primary Authority scheme to give more businesses access to reliable, consistent regulatory advice.

    This will save them money, and give them the confidence they need to invest and to grow.

    The Enterprise Bill will also end the “Whitehall knows best” approach to the regulation of Sunday trading.

    We are a One Nation government and we want to see the benefits of economic growth being felt in every corner of our country.

    But no two parts of our great nation are identical.

    The needs and wants of a small rural community in the South West may be very different to those of a bustling city in the North East.

    And the people living and working in those communities understand them far better than any MP or civil servant sitting in a comfy London office.

    So we will introduce amendments in this Bill to allow local authorities to decide whether to extend hours in their areas.

    Central government will not be dictating how to use this power.

    The decision will be entirely local, reflecting local preferences, shopping habits and economic conditions.

    If the people of Bromsgrove or Barking say they want to see longer Sunday opening hours, who are we here in Westminster to stand in their way?

    Small Business Commissioner

    Any of our friends in the press gallery who have spent time freelancing will be all too aware of the problem of late payment.

    I’ve heard of one writer who has said he hasn’t been paid for copy he filed two years ago.

    But the most shocking aspect is just how common this is.

    In my six years as MP for Bromsgrove I have been contacted by many dozens of local business owners who have been pushed to the brink by one thing…

    The failure of larger corporations to pay up on time.

    When it comes to late payment my department is leading by example.

    We pay more than 95% of invoices within 5 days, and more than 99% within 30 days.

    But many organisations are less scrupulous, including some in the public sector.

    The average British small business is owed almost £32,000 in overdue invoices.

    It’s a huge sum.

    For many, it can be the difference between success and failure.

    Between keeping going for another year and throwing in the towel.

    But it’s not easy for a small business or sole trader to challenge a larger firm.

    You might not be happy, but you need the contract.

    You can’t afford to bite the hand that feeds.

    It’s not right, it’s not fair, and this Bill will do something about it.

    We are establishing a Small Business Commissioner with a remit to handle complaints by small businesses about payment-related issues with larger businesses.

    The commissioner will also have the resources to give general advice and information to assist small businesses with supply relationships and direct them to mediation services.

    It’s not just late payment of invoices that’s a problem.

    As we’ve seen all too graphically with the recent flooding, it’s absolutely vital that insurance companies also pay out quickly.

    Doing so helps small businesses to help themselves, getting them back on their feet.

    Yet this doesn’t always happen.

    Unnecessary delays by insurers can spell the end for vulnerable small businesses, hitting employees, suppliers, and the wider community and economy.

    So this Bill will create a legal obligation on insurers to pay up within a reasonable timeframe.

    Apprenticeships

    Insurance can protect many of a business’s assets from floods, theft, or fire.

    But at any company, the most precious asset isn’t its bricks and mortar.

    It’s not stock in the warehouse.

    It’s not even money in the bank.

    It’s the skilled, dedicated workforce without which no business can succeed.

    Developing and growing our skills base is the key to unlocking increased productivity.

    It’s the key to raising living standards, and driving that all-important economic growth.

    That’s why the government has committed to 3 million new apprenticeships by 2020.

    We’ve also introduced a new apprenticeship levy on the very largest employers to help pay for them.

    The Enterprise Bill will build on this success.

    It will introduce apprenticeship targets for public sector bodies in England.

    It will protect the ‘apprenticeship’ brand.

    Unscrupulous providers will not be allowed to offer shoddy training, undermining businesses and letting down apprentices.

    And I am proud to say that the Bill will create an Institute for Apprenticeships.

    An independent employer-led body, the institute will regulate the quality of apprenticeships, and see that standards are driven by the needs of employers.

    As well as quality assurance and approval functions, the institute will also have an advisory role on funding allocations for each apprenticeship standard.

    And we will be introducing amendments to give employers genuine control of apprenticeship funding through digital accounts as part of the digital apprenticeship service.

    Together, these measures will make it easier than ever for young people to access vocational training.

    And, just as importantly, for businesses of all sizes to develop the skilled workforce they need to innovate, to compete and to grow in the years ahead.

    Business rates

    Of course it’s much easier to achieve that growth if the taxman isn’t hovering over you at every turn.

    I’ve already talked about how we’ve slashed corporation tax, ending years of punishing entrepreneurs for their success.

    But this isn’t the only tax issue facing Britain’s high streets.

    It’s often said that small business owners are ‘working for themselves’.

    But because of flaws in the business rates system, entrepreneurs can sometimes feel like they are working for their local authority.

    We have started to tackle this by capping business rate rises.

    And we know the appeals system also needs reform.

    So we are working with ratepayers to develop a modern business-focused approach to local taxation.

    This Bill will further reduce the burden on businesses by applying the government’s ‘tell us once’ policy to business rates.

    And it will put in place legislation to pave the way for better information-sharing between local government and the Valuation Office.

    Pubs

    Now, allow me to turn to pubs. I’m sure we all agree that local businesses are the heart of the communities they serve.

    And that nowhere is this truer than in the great British pub.

    I assume that’s one type of business that Hon and Rt Hon members of all parties will be familiar with.

    The Small Business Enterprise and Employment Act, passed in the previous Parliament, required the creation of a Pubs Code.

    When enacted, the Pubs Code regulations will make life a little fairer for more than 12,000 tied pub tenants across England and Wales.

    We have just completed a consultation on these regulations and will publish the final version in time for the code to be in place from the end of May.

    Many responses to the consultation raised an issue concerning the market rent-only option, or the so-called ‘MRO’.

    Specifically, they said that the eligibility of a tenant to choose MRO at the point of rent assessment should not be contingent on the rent being increased.

    Now, good government is all about listening and responding positively.

    Clearly this proposal would have had an effect we did not intend.

    So I’m happy to announce that we will be accepting the argument regarding MRO.

    Members in the ‘other place’ tabled amendments to the Enterprise Bill on this issue.

    Obviously we now accept their intent, and we will be tidying them up during the committee stage.

    Government-owned businesses and spending

    The Opposition have a renewed enthusiasm for seizing control of the means of production, distribution and exchange. I think it is fair to say that Conservative Members do not share that enthusiasm, but we are committed to delivering the best possible value for money from those assets where the taxpayer retains an interest.

    We are committed to delivering the best possible value for money from those assets where the taxpayer retains an interest.

    Last May the Chancellor announced plans for a new company, UK Government Investments Limited (UKGI), to better manage taxpayer stakes in businesses across the economy.

    This Bill contains a provision on UKGI, ensuring the necessary funding powers are in place so it can carry out its vital work.

    That will include overseeing the sale of government assets in a way that will benefit the taxpayer.

    And that will include the sale of the Green Investment Bank (GIB).

    Established in the last Parliament to address a failure in the market, the GIB has demonstrated to the wider world that investment in green projects makes good business sense.

    In fact that bank has proved so successful that it has outgrown the need to be financed by the taxpayer.

    Moving the bank into private ownership will give it access to much greater volume of capital, mobilising more investment and getting more green projects financed.

    The Enterprise Bill contains provisions that will ensure this move to the private sector can take place effectively and transparently.

    This will mean the GIB can continue to go from strength to strength delivering the ambitious green business plan it has.

    It is that expertise and that business plan that private investors will be buying into.

    As the name suggests, green investment is what the Green Investment Bank does.

    It is what has made the bank such a success.

    No sensible investor would look to change that.

    To address concerns raised in the ‘other place’, GIB will create a special share.

    This will ensure that its green mission is guarded by an independent party once the bank is sold.

    And the share will be put in place without legislation, to ensure we can move the bank to the private sector.

    Mandating this in legislation is entirely unnecessary, and unlikely to work.

    Finally, this Bill will bring the public sector into line with private sector best practice on exit payments.

    Too many public sector fat-cats are currently handed 6-figure pay-offs when they leave a job, often little more than a reward for failure.

    This is an insult to the hardworking taxpayers and business owners who finance them.

    The Enterprise Bill will end this practice.

    Conclusion

    Mr Speaker, when Napoleon called Britain a nation of shopkeepers he meant it as an insult.

    I see it as a badge of honour.

    I grew up above the family shop.

    I saw for myself how hard my parents worked, day and night, 7 days a week, to make their business a success.

    It takes a special kind of dedication to build something like that from scratch and keep it going for 30 years or more.

    And before becoming an MP I spent two decades at the other end of the business spectrum, working for some of the world’s biggest companies.

    So for as long as I can remember I’ve been surrounded by people who have created, they’ve managed and grown successful private businesses.

    And when they create businesses they create jobs.

    They create prosperity.

    They create opportunity.

    Businessmen and women are the heroes of Britain’s economic recovery.

    And whether they’re running an international corporation from Canary Wharf…

    …or running a one-woman start-up from a kitchen table…

    …they deserve our respect and they deserve our support.

    This Enterprise Bill gives them all that and more, and I commend it to the House.

  • Nick Gibb – 2016 Statement on Reformed GCSEs and A-Levels

    nickgibb

    Below is the text of the statement made by Nick Gibb, the Schools Minister, to the House of Commons on 4 February 2016.

    We are reforming GCSEs, AS and A levels to make sure that they give students the best possible preparation for further and higher education, and for employment. We want new GCSEs to set expectations which match those of the best education systems in the world, with rigorous assessment that provides a reliable measure of students’ achievement. The reforms are extensive and represent a new qualification gold standard.

    Schools are now teaching some of the new reformed GCSEs and A levels, and we have already published reformed subject content for those GCSEs and A levels to be taught from September 2016. Content for reformed GCSE subjects and for AS and A level subjects can be found on GOV.UK.

    The new GCSEs will be more academically demanding, and reformed AS and A levels will better prepare students for undergraduate study.

    Today I am publishing revised subject content for some of the GCSEs and AS and A levels that will be taught in schools from September 2017:

    GCSEs in ancient history, classical civilisation, electronics, film studies, media studies and statistics.

    AS and A levels in accounting, ancient history, archaeology, classical civilisation, electronics, film studies, law and media studies.

    Accounting AS and A level requires students to understand and to apply double entry accounting methods. A greater emphasis is placed on the use of accounting concepts and techniques in the analysis and evaluation of financial information. There is also a better balance between financial and management accounting.

    The new ancient history GCSE, and AS and A levels will require students to study events, individuals, societies, developments and issues drawn from the period 3000 BC to 500 AD. At GCSE students must study the history of at least 2 societies, at least 1 of which must be Roman or Greek. At A level students must study the history of both ancient Rome and ancient Greece. At GCSE students will have to undertake 1 period study covering at least 50 years, 1 longer period study covering at least 150 years, and 2 depth studies focusing on shorter time spans. At A level students will undertake 2 period studies of at least 75 years and 2 depth studies.

    The new archaeology AS and A levels will require students to study 2 archaeological contexts in depth (1 at AS) and what the archaeological evidence can tells us about that society’s social structure, belief system, art and technology. Through 2 breadth studies (1 at AS) students will also study at least 3 different societies in relation to specific issues such as religion and ritual, or economics and material culture.

    The new classical civilisation GCSE, AS and A levels will require students to study both Roman and Greek civilisation (and their surrounding worlds). All students will now study literature (at least 30% of the GCSE and A level) and visual/material culture (at least 20% of the GCSE and 15% of the A level), and at A level students will also study classical thought. Students will develop their understanding of the classical world through study of the social, historical, and cultural context of the literature and sources selected.

    The new electronics GCSE increases the demand of the subject by increasing the breadth and depth of content students are required to study. The new electronics AS and A levels have improved depth and breadth with new topics such as the principles of semiconductors added. The GCSE, AS and A level content also includes strengthened mathematical requirements and a detailed list of equations that students will be required to know and understand.

    The film studies GCSE, AS and A levels will require students to study critically recognised, culturally and historically significant films. At GCSE and AS students will study at least 6 films including at least 1 British, 1 non-English language and 1 independent film and at least 1 historical film made before 1961. A level students will study at least 12 films from at least 3 continents covering pre 1930 to present day, including documentary, experimental and silent film. Overall the content emphasises a more academic approach with greater emphasis on a critical and contextual understanding of film, and at A level of film theory.

    The new law AS and A level content will ensure students study a greater number of areas of substantive law. At AS, 1 area of public law and 1 area of private law; and at A level at least 3 areas of law. Students also need to study the nature of law including links to moral concepts, how law interacts with society, and the English legal system.

    The new media studies GCSE, AS and A levels will ensure that students have an understanding of the main theoretical concepts underpinning the subject. Students will study media language, representation, media industries, and audiences, and will apply all 4 of these to at least 1 audio visual, 1 print and 1 online media form. Overall, students will study 9 forms of media and all products studied must be culturally, socially and historically significant. The AS and A level also require students to study a wide range of specified theories and theorists.

    The new and more demanding statistics GCSE requires students to study the statistical enquiry cycle and to perform key statistical calculations such as interpercentile range and standard deviation. Students will be required to know and use fundamental formulae, for example to determine Spearman’s rank correlation coefficient. New content has been added, such as using collected data and calculated probabilities to determine and interpret risk, and interpreting the characteristics of a binomial distribution.

  • Justine Greening – 2016 Statement on Syria

    justinegreening

    Below is the text of the statement made by Justine Greening, the Secretary of State for International Development, to the House of Commons on 8 February 2016.

    With permission, Mr Speaker, I shall make a statement updating the House on the recent Syria Conference, which the UK co-hosted with Kuwait, Norway, Germany and the United Nations last Thursday.

    For nearly five years the Syrian people have suffered unimaginable horrors at the hands of the Assad regime and, more recently, Daesh.

    Inside Syria there are 13.5 million people in desperate need and a further 4.6 million people have become refugees.

    As we have seen over the past 72 hours alone the impact of this crisis on the people of the region is terrible and profound.

    I was in Lebanon and Jordan last month and spoke to refugees, some of whom are now facing their fifth winter spent under a tent, and their stories are similar. When they left their homes, they thought they’d be back in weeks or perhaps months at most.

    It’s turned out to be years, with no end to in sight.

    UK response

    Syria is now not only the world’s biggest and most urgent humanitarian crisis. Its far-reaching consequences are being felt across Europe and touching our lives here in Britain.

    More than 1 million refugees and migrants risked their lives crossing the Mediterranean last year. Of these around half were fleeing from the bloodbath in Syria.

    Mr Speaker, since the fighting began, Britain has been at the forefront of the humanitarian response to the Syria conflict.

    Aid from the UK is helping to provide food for people inside Syria every month, as well as clean water and sanitation for hundreds of thousands of refugees across the region.

    Our work on the Syria crisis gives people in the region hope for a better future and is also firmly in Britain’s national interest. Without British aid, hundreds of thousands more refugees could feel they have no alternative but to risk their lives by seeking to get to Europe.

    But more was needed.

    The UN Syria appeals for the whole of last year ended up only 54% funded – other countries needed to follow the UK’s lead and step up to the plate.

    That’s why the UK announced we would co-host an international conference in London on behalf of Syria and the region. This would build on three successful conferences held in Kuwait in previous years.

    Supporting Syria & the Region

    Mr Speaker, on Thursday last week, we brought together over 60 countries and organisations including 33 heads of state and Governments.

    The stage was set for the international community to deliver real and lasting change for all the people affected by this crisis – but in the end it would all come down to choices.

    Could we pledge the record-breaking billions needed – going much further than previous conferences? And could we commit to going beyond people’s basic needs and deliver viable, long-term solutions on jobs and education for Syria’s refugees and the countries supporting them.

    At the London Conference the world made the right choices to do all of those things – countries, donors and businesses all stepped up and raised new funds for this crisis to the amount of over $11billion (£7.7 bn). This included $5.8bn (£4 bn) for 2016 and another $5.4billion (£3.6 bn) for 2017-2020.

    This was the largest ever amount committed in response to a humanitarian crisis in a single day. It means more has been raised in the first five weeks of this year for the Syria crisis than in the whole of 2015.

    The UK, once again, played our part. We announced that we would be doubling our commitment – increasing our total pledge to Syria and the region to over £2.3 billion.

    Going beyond people’s basic needs, at the London Conference, the world said there must be no lost generation of Syrian children, pledging to deliver education to children inside Syria and education to at least 1 million refugee and host community children, in the region outside Syria, who are out of school.

    This is an essential investment not only in these children, but in Syria’s future. It also gives those countries generously hosting refugees temporarily the investment in their education systems that will benefit them for the longer term.

    The London Conference also made a critical choice on supporting jobs for refugees and economic growth in the countries hosting them.

    We hope historic commitments with Turkey, Lebanon and Jordan will create at least 1 million jobs in countries neighbouring Syria, so that refugees have a livelihood close to home. This will also create jobs for local people and leave a legacy of economic growth.

    By making these choices, we’re investing in what is, overwhelmingly, the first choice of Syrian refugees: to stay in region and closer to their home country and their families still in it. And if we can give Syrians hope for a better future where they are, they are less likely to feel they have no other choice left but to make perilous journeys to Europe.

    Mr Speaker, I’d like to thank all of those civil servants from my own department, the Cabinet Office, the Foreign Office, and BIS, who worked tirelessly as a team to help deliver such a such a successful and vital conference.

    It’s not often that civil servants get the thanks that I believe they deserve, but on this occasion I’d wanted to put that on record.

    The political process

    Mr Speaker, the world has offered an alternative vision of hope to all those affected by this crisis but only peace will give Syrian people their future back.

    The establishment of the International Syria Support Group at the end of 2015 was an important step on the path to finding a political settlement to the conflict. The Syrian opposition has come together to form the Higher Negotiations Committee to engage in negotiations on political transition with the regime and the UN launched proximity talks between the Syrian parties in January.

    The UN Special Envoy for Syria took the decision to pause these talks following an increase in airstrikes and violence by the Assad Regime, backed by Russia.

    The UK continues to call on all sides to take steps to create the conditions for peace negotiations to continue. In particular Russia must use its influence over the regime to put a stop to indiscriminate attacks and the unacceptable violations of international law.

    Across Syria, Assad and other parties to the conflict are willfully impeding humanitarian access on a day-by-day basis. It is a brutal, unacceptable and illegal action to use starvation as a weapon of war.

    In London world leaders demanded an end to these abuses, including the illegal use of siege and obstruction of humanitarian aid.

    Our London Conference raised the resourcing for life-saving humanitarian support. It must be allowed to reach those in need as a result of the Syria conflict, irrespective of where they are.

    The campaign against Daesh

    I also want to take this opportunity to provide an update on the campaign against Daesh in Iraq and in Syria.

    Since my Right Honourable Friend the Foreign Secretary last updated the House on the campaign against Daesh in Syria and Iraq, the Global Coalition, working with partner forces, has put further pressure on Daesh.

    Iraqi forces, with Coalition support, have retaken large portions of Ramadi. In Syria, the Coalition has supported the capture of the Tishreen Dam and surrounding villages as well as areas south of al-Hawl.

    The UK is playing our part. As of 5th February, RAF Typhoon, Tornado and Reaper aircraft have flown over 2,000 combat missions and carried out more than 585 successful strikes across Syria and Iraq.

    We are also leading efforts to sanction those trading with or supporting Daesh. My Right Honourable Friend the Prime Minister gained agreement at the European Council in December on asset freezes and other restrictive measures.

    Conclusion

    Mr Speaker, in conclusion since day one of this crisis the UK has led the way in funding and shaping the international response. We have evolved our response as this incredibly complex crisis itself has evolved.

    There will be no end to the suffering until a political solution can be found.

    The Syria Conference, co hosted by the UK and held here in London, was a pivotal moment to at least respond to help those people affected and those countries affected. We seized the chance to offer the Syrian people and their children hope for a better future.

    The UK will of course now be at the heart of making that ambition a reality and keeping the international community’s promise to the Syrian people.

    This is the right thing to do on behalf of those suffering and, fundamentally, it is also the right thing to do for Britain too and I commend this statement to the House.

  • Greg Clark – 2016 Speech on Local Government Finance

    gregclark

    Below is the text of the statement made by Greg Clark, the Secretary of State for Communities and Local Government, in the House of Commons on 8 February 2016.

    Mr Speaker,

    I am pleased to report to the House my response to the consultation on the provisional local government financial settlement for the next financial year.

    I have considered all 278 responses to the consultation; my ministers and I have met with local government leaders of all types of authority, from all parts of the country.

    I have listened carefully to each of them.

    I am grateful to everyone who has taken the trouble to make such suggestions.

    The provisional settlement contained a number of important innovations.

    Firstly, although the statutory settlement is for 2016 to 2017, I set out indicative figures to allow councils to apply for a 4 year budget, extending to the end of the Parliament. Such a change permits councils to plan with greater certainty.

    This offer was widely appreciated in the consultation; this is not surprising, since it has been a key local government request for years.

    I want to give councils the time to consider this offer, and formulate ways to translate this greater certainty into efficiency savings. I will therefore give councils until Friday 14 October to respond to the offer – although many have done so positively, already.

    Secondly, in the provisional settlement I responded to the clear call from all tiers of local government to recognise the important priority – and growing costs – of caring for our elderly population.

    In advance of the Spending Review, the Local Government Association and the Association of Directors of Adult Social Services had written to me requesting an additional £2.9 billion a year be available by 2019 to 2020.

    Through a dedicated social care precept of 2% a year – equivalent to £23 per year on an average Band D home, and a Better Care Fund of £1.5 billion a year by 2019 to 2020 to address pressures on care.

    The provisional settlement made up to £3.5 billion available by 2019 to 2020.

    Thirdly, recognising that council services in rural areas face extra costs, I proposed in the provisional settlement that the Rural Services Delivery Grant should be increased from £15.5 million this year to £20 million in 2016 to 2017 – the year of this settlement – and to £65 million in 2019 to 2020.

    Councils and colleagues who represent rural areas welcomed this, but some asked that the gap between rural and urban councils, in terms of central government grant, should not widen, especially in the year ahead for which this statutory settlement is concerned.

    Fourthly, this year’s provisional settlement marked the turning point from our over-centralised past.

    At the start of the 2010 Parliament, almost 80% of council expenditure was financed by central government grant; by next year Revenue Support Grant will account for only 16% of spending power; by 2019 to 2020 only 5%.

    Ultimately, Revenue Support Grant will disappear altogether, as we move to 100% business rates retention.

    Local financing – through Council Tax and business rates – rather than central government grant, has been a big objective of councils for decades.

    However, some authorities argued for transitional help in the first 2 years, when the central government grant declines most sharply; they argued that other local resources would not have had time to build up fully.

    So, much in the provisional settlement was welcomed, but specific points were made about:

    the sharpness of changes in government grant in the early years of this Parliament
    concerns about the costs of service delivery in rural areas
    Another very important point was made. Many councils felt that too much time has passed since the last substantial revision of the formula which assesses a council’s needs, and the costs it can be expected to incur in delivering services.

    These responses to the consultation seem to me reasonable and ought to be accommodated if at all possible.

    Everyone will appreciate that the need to reduce the budget deficit means that meeting these recommendations is extraordinarily difficult.

    I am pleased to be able to meet all of the most significant of them.

    I can confirm that every council will have, for the financial year ahead, at least the resources allocated by the provisional settlement.

    I have agreed to the responses to the consultation which recommended additional funding to ease the pace of reductions during the most difficult first 2 years of the settlement for councils with the sharpest reductions in Revenue Support Grant.

    I will make additional resources available in the form of a transitional grant, as proposed in their responses to the consultation by colleagues in local government. The grant will be worth £150 million a year, paid over the first 2 years.

    On the needs formula itself, it is nearly 10 years since the current formula was last looked at thoroughly.

    There is good reason to believe that the demographic pressures affecting particular areas – such as the growth in the elderly population – have affected different areas in different ways, as has the cost of providing services.

    So I can announce that we will conduct a review of what the needs assessment formula should be in a world in which all local government spending is funded by local resources not central grant, and use it to determine the transition to 100% business rates retention.

    Pending that review, I recognise the particular costs of providing services in sparse rural areas.

    So I propose to increase by more than fivefold the Rural Services Delivery Grant from £15.5 million this year to £80.5 million in 2016 to 2017.

    With an extra £32.7 million available to rural councils through the transitional grant I have described, this is £93.2 million of increased funding compared to the provisional settlement available to rural areas.

    Significantly, this proposal ensures no deterioration in government funding of rural areas compared to urban areas for the year of this statutory settlement.

    I have also, at the request of rural councils, helped the most economical authorities by allowing them to charge a de minimis £5 more a year in Council Tax without triggering a referendum.

    I will also consult on allowing well-performing planning departments to increase their fees in line with inflation at the most, providing that the revenue reduces the cross subsidy that the planning function currently gets from Council Tax payers.

    A final point from the consultation: although the figures for future years are indicative, a small number of councils were concerned that, as their Revenue Support Grant declined, they would have to make a contribution to other councils in 2017 to 2018 or 2018 to 2019.

    I can confirm that no council will have to make such a payment.

    Mr Speaker, these are important times for local government. The devolution of power and resources from Whitehall is gathering momentum.

    Yet I am aware that there is serious work for councils to do to provide excellent services to residents – at the lowest cost possible – over the years ahead.

    I acknowledge the important role of councils which deliver the services on which all our constituents depend.

    I am grateful for all of their contributions.

    My response to the consultation has responded positively to sensible recommendations, in as fair a manner as possible, while holding firm to our commitment to free our constituents from the dangers inherent in the deficit.

    I commend this statement to the House.

  • David Cameron – 2016 Speech on Prison Reform

    davidcameron

    Below is the text of the speech made by David Cameron, the Prime Minister, at the Policy Exchange, Westminster in London on 8 February 2016.

    Let me begin with a pretty extraordinary fact: it’s well over 20 years since a Prime Minister made a speech solely about prisons.

    To be frank, it can sometimes be easy for politicians to worry so much that their words will be caricatured, that they might just as well avoid this whole area.

    And it can be easy for us all – when these buildings are closed off by high walls and barbed wire – to adopt an “out of sight, out of mind” attitude. I want this government to be different.

    When I say we will tackle our deepest social problems and extend life chances, I want there to be no no-go areas.

    And that must include the 121 prisons in our country, where our social problems are most acute and people’s life chances are most absent.

    So today, I want to explain why I believe prison reform should be a great progressive cause in British politics, and to set out my vision for a modern, more effective, truly twenty-first century prison system.

    My starting point is this: we need prisons.

    Some people – including, of course, rapists, murderers, child abusers, gang leaders – belong in prisons. For me, punishment – that deprivation of liberty – is not a dirty word.

    I never want us to forget that it is the victims of crime who should always be our principal priority.

    And I am not unrealistic or starry-eyed about what prisons can achieve. Not everyone shows remorse, and not everyone seeks redemption.

    But I also strongly believe that we must offer chances to change, that for those trying hard to turn themselves around, we should offer hope, that in a compassionate country, we should help those who’ve made mistakes to find their way back onto the right path.

    In short: we need a prison system that doesn’t see prisoners as simply liabilities to be managed, but instead as potential assets to be harnessed.

    But the failure of our system today is scandalous. 46% of all prisoners will re-offend within a year of release. 60% of short-sentenced prisoners will reoffend within the same period.

    And current levels of prison violence, drug-taking and self-harm should shame us all. In a typical week, there will be almost 600 incidents of self-harm; at least one suicide; and 350 assaults, including 90 on staff.

    This failure really matters.

    It matters to the public purse: this cycle of reoffending costs up to £13 billion a year.

    It matters to you: because in the end, who are the victims of this re-offending? It’s the mother who gets burgled or the young boy who gets mugged.

    It matters to the prison staff – some of the most deeply committed public servants in our country – who have to work in dangerous and often intimidating conditions.

    And yes, it matters to the prisoners themselves, who mustn’t feel that society has totally given up on them.

    I’m clear: we need wholesale reform.

    And I am convinced that with the right agenda, we can be world leaders in change just like we have been in welfare, just like in education – we can demonstrate that with the right reforms, we can make a lasting difference to people in our society.

    Resetting the debate

    Now that begins with resetting the terms of the debate, especially when there are unhelpful, but well-worn mantras that I think hold progress back.

    For years, education was set back by the soft bigotry of low expectations – the idea that the most disadvantaged children shouldn’t be expected to achieve the best results.

    Likewise, police reform was partly set back by the false notion that the number of officers you had mattered, more than how smartly they were actually deployed.

    And welfare reform was set back by the lazy idea that fairness could be judged by the size of a cheque, rather than the chances you offered.

    One by one, in this government we’ve taken those arguments on – and we created the platform for reform.

    Today, we need to do the same with prisons.

    I think there are 3 views that have held back our progress.

    And together, they’ve helped produce the sterile ‘lock ‘em up’ or ‘let ‘em out’ debate that I think has often got in the way of real change.

    The first is the idea that prisons are packed to the rafters with people who don’t deserve to be there.

    This is not wholly untrue – there’s a strong case for the severely mentally ill, or women with small children, to be dealt with in a different way.

    But this position of some – that we could somehow release tens of thousands of prisoners with no adverse consequences – is nonsense.

    It’s simply not borne out by the evidence.

    Prisons are not full of offenders sentenced for drug possession, licence fee evasion or petty, victimless crime.

    It’s actually pretty hard to get into prison in the first place.

    Here are the facts: only 7% of prisoners are sentenced to custody for a first offence – and these will inevitably have been very serious crimes.

    70% of prisoners have at least 7 previous offences, and the average prisoner has 16 previous convictions.

    So you won’t hear me arguing to neuter judges’ sentencing powers or reduce their ability to use prison when it is required.

    Of course, there is one group I do want out of prison much more quickly, instead of British taxpayers forking out for their bed and breakfast: and that is foreign national offenders.

    One of the big barriers here is that we don’t systematically record the nationality of offenders early enough – and this can hamper our ability to deport them.

    I know the frustrations of prison governors when they have to try to find out someone’s nationality after they’ve already arrived in prison.

    So I can announce today that we will now legislate to give the police new powers to require foreign nationals to hand over their passports, and make them declare their nationality in court.

    The second view that has held reform back is the idea that the only reliable way of cutting crime is to toughen sentencing and substantially increase the prison population.

    Now again, there is some truth in this, and I know that incapacitation – prisoners being unable to threaten public safety while they’re behind bars – is absolutely vital.

    I’ve made this point myself about prolific burglars many times.

    That’s why we’ve toughened sentencing, including for the most serious violent and sexual offenders, and rightly so.

    But I think politicians from all sides of the political spectrum are starting to realise the diminishing returns from ever higher levels of incarceration.

    For a start, under this government we’ve already cut crime by around 23% in the last 5 years while keeping the prison population largely flat.

    And the truth is that simply warehousing ever more prisoners is not financially sustainable, nor is it necessarily the most cost-effective way of cutting crime.

    Worse than that, it lets the other parts of the criminal justice system that are failing off the hook. It distracts us from the job of making prisons work better.

    And it fuels prison overcrowding, which hampers efforts to rehabilitate offenders – and that just makes us all less safe.

    So the question must be: wouldn’t we be better to focus our scarce resources on preventing crime in the first place and by breaking the cycle of reoffending?

    The third view that has held back reform is the one that says that prisons are too soft – that they’re a holiday camp, and we should make them harsher to provide more of a deterrent.

    Now, I get hugely frustrated when I see the poor security that, for example, means prisoners able to access Facebook, or prisons that appear to be awash with alcohol and drugs.

    We are taking more action on drugs, corruption and mobile phones. We’ve legislated to criminalise possession of so-called legal highs in prison.

    We’re developing a new Corruption Prevention Strategy to deal with the small number of corrupt staff who allow contraband in our prisons.

    And I can announce today that we are going to work with the mobile network operators to challenge them to do more, including developing new technological solutions, so we can block mobile phones’ signals in prisons.

    But you know what?

    Prisons aren’t a holiday camp – not really. They are often miserable, painful environments. Isolation. Mental anguish. Idleness. Bullying. Self-harm. Violence. Suicide. These aren’t happy places.

    It’s lazy to subscribe to the idea that prisoners are somehow having the time of their lives. These establishments are full of damaged individuals.

    But here’s the point: 99% of them will be released one day, back into our communities.

    So we should ask ourselves: is it a sensible strategy to allow these environments to become twisted into places that just compound that damage and make people worse?

    Or should we be making sure that prisons are demanding places of positivity and reform – so that we can maximise the chances of people going straight when they come out?

    Think about it this way: being tough on criminals is not always the same thing as being tough on crime.

    Principles of reform

    So we need a new approach – one that doesn’t waste too much energy discussing big existential questions about the prison population or trap us into often false choices between so-called tough or soft approaches.

    We’ve got to move on – and develop a sensible plan for prison reform that will deliver better outcomes, improved public safety and lower costs for taxpayers.

    Michael Gove is just the man for the job.

    And I want to thank Ken Clarke and Chris Grayling for the good start we made in this area in government – and Nick Herbert for changing our approach on prisons in opposition.

    In reforming prisons, we need to look no further than the approach we’ve taken in reforming other public services.

    Our reforms have followed some general rules.

    One: give much greater autonomy to the professionals who work in our public services, and allow new providers and new ideas to flourish.

    This is how you institute a culture of excellence – empowering staff, as well as charities and businesses, to innovate and try new things.

    It’s exactly what we did in education – with academies, free schools and new freedoms for heads and teachers.

    Two: hold these providers and professionals to account with real transparency over outcomes.

    Just as we have done in education and policing, we need better data – to allow meaningful comparisons to be made between different prisons – so the best performing institutions and best performing leaders can be recognised and rewarded.

    Three: intervene decisively and dramatically to deal with persistent failure, or to fix the underlying problems people may have.

    This is the lesson from our troubled families programme. We know piecemeal, fragmented solutions don’t work. Instead, you need to see how an individual’s problems link together, and intervene in the right way.

    So while we’ve got the opportunity that prison presents, we need to be far better at deal with and at addressing prisoners’ illiteracy, addiction and mental health problems.

    Four: use the latest behavioural insights evidence and harness new technology to deliver better outcomes.

    We’ve done this in welfare, for instance through the introduction of greater conditionality – meaning that those who are out of work must show they are taking meaningful steps to find employment, in return for getting their benefits.

    And the number of workless households has fallen by an incredible 480,000 since 2010.

    By applying these principles, I believe we really can deliver a modern, more effective prisons system that has a far better chance of turning prisoners into productive members of society.

    So let me explain more what we will do in each area.

    Greater autonomy

    The first part of our strategy is to put professionals in the lead and to remove the bureaucratic micromanagement that disempowers them. The prisons system today is incredibly and uniquely centralised.

    Think about this, and think about it from the perspective of the boss of a prison – the prison governor.

    924 prison service instructions and prison service orders are currently in operation. These are documents issued from ‘headquarters’ to prescribe the running of our prisons.

    Together, they amount to an incredible 46,000 pages of rules, regulations and guidance. Now some of this will be necessary, I accept. Prisons need rules.

    But we’ve reached the point where someone in Whitehall is sitting around deciding how many jigsaws a prisoner should be able to keep in his cell, how many sheets of music they can have in their possession – 12, in case you’re wondering – and even how many pairs of underpants they’re allowed.

    Think about the kind of morale-sapping, initiative-destroying culture this can create in an organisation.

    Want to try something new? Ask head office.

    Think you’ve found a better way of organising things? Get back in your box.

    Looking for motivation and inspiration on a Monday morning? Go and look elsewhere.

    There’s a governor I spent some time with this morning who made exactly this point. He said it’s almost as if, in doing the things he needs to, to get businesses in to prisons and to get workshops going ultimately he said he’d have to break the rules. This is obviously the wrong approach.

    Prisons are often accused of infantilising the prisoners, but we’re actually infantilising the staff.

    This is one of the toughest environments we ask people to work in.

    And I want the leadership team of a prison to be highly-motivated, to be entrepreneurial and to be fired up about their work, to be a team who don’t ask permission from the centre every time, but are just empowered to get on and try something new.

    So this is what we are going to do.

    We are going to bring the academies model that has revolutionised our schools to the prisons system.

    We are going to give prison governors unprecedented operational and financial autonomy, and be trusted to get on and run their jail in the way they see fit. They’ll be given a budget and total discretion over how to spend it.

    So, for example, they’ll also be able to opt-out of national contracts and choose their own suppliers.

    Instead of being prevented from transferring money between different pots, they can decide what they want to focus resources on.

    And they’ll also be able to tailor their own regimes – including the amount of time spent ‘out of cell’ doing purposeful activity.

    I can announce today that we will create 6 such reform prisons this year, run by some of the most innovative governors from across the prison estate.

    We’ll follow this with a Prisons Bill in the next session that will spread these principles across the rest of the prisons system.

    And because we know that state monopolies are often very slow to change themselves, and because the involvement of the private and voluntary sectors in prisons has been one of the most important drivers of change in this system since the 1990s, we’ll ensure there is a strong role for businesses and charities in the operation of these reform prisons and the new prisons we will build in this Parliament.

    Together, this will amount to the biggest shake-up in the way our prisons are run since the Victorian times.

    And we’ll adopt the same principle in youth justice, too.

    As Charlie Taylor’s interim review will recommend tomorrow, we’ll explore using the free school process to set up secure alternative provision academies.

    In short: this will mean turning existing Young Offender Institutions into what will effectively be high quality schools that will demand the highest standards.

    And we want to attract the best talent into our prisons.

    I want us to make it even more aspirational for people to work in a prison and to want to run a prison.

    So just as we have done with the police, we’ll put rocket boosters under direct entry and fast-track schemes to attract the very best into managing the prison system so that it can benefit from greater diversity, fresh ideas and new leadership.

    Transparency and accountability
    With freedom and autonomy must come accountability – and that’s why the second part of our plan must be to improve transparency.

    Here are some questions for you:

    What is the best performing prison in the country?

    Which is the prison that is achieving the best reoffending results?

    Which is the prison where offenders get the best qualifications to help them get a job when they’re released?

    The answer is: we don’t know. Seriously, we have no idea. This just isn’t good enough.

    Any modern public service has to be able to demonstrate its value. It’s how you can make meaningful comparisons between different services.

    But most of all, it’s how the people working inside the system can find out what’s working and what isn’t working – and adapt accordingly.

    It can incentivise more of the kind of projects I saw this morning, like the Halfords Academy that is getting people the skills they need to find work.

    So I can announce today we will now develop meaningful metrics about prison performance.

    We will measure the things that really count: reoffending levels compared to a predicted rate; employment outcomes for prisoners; whether or not the offender went into permanent accommodation; and what progress was made on basic literacy and key skills.

    And I can also announce that we will not only publish this data, we will develop new Prison League Tables that allow us to easily compare different institutions.

    This transparency isn’t just a very powerful way to drive culture change, it also allows the government to hold those working in the system more easily to account.

    Using this information, we can use other tools – like payment for performance – to drive further improvements.

    It’s working in academies, it’s working in troubled families, it’s working in the Civil Service – so I can announce today that we will work with prison staff to examine a new financial incentive scheme to reward staff in the best-performing prisons.

    Intervention and treatment

    By introducing autonomy and transparency, we can get the structures right to improve outcomes. But we often need more direct, and joined up, intervention to help turn people’s lives around.

    Consider these facts: 24% of those in prison have been in care as a child.

    49% have an identifiable mental health problem. Nearly half.

    47% almost half, have no qualifications whatsoever.

    And behind these numbers, we have human beings.

    Children who felt the raw pain of abandonment at a young age – pain that never goes away.

    Young people who were abused physically by those they trusted most – with violence and fear often devastating the sanctuary of home.

    Kids who never had proper discipline and so never learnt the virtues of delayed gratification or impulse control.

    Arriving at school already far behind, and the frustrations of illiteracy or maybe dyslexia leading to bravado, misbehaviour and exclusion.

    Exposed to alcohol and drugs too young in life. Kicked out of the house as a teenager and learning to survive on the streets.

    I spoke last month about extending life chances.

    But we have to recognise that the prison population draws mostly from the ranks of those whose life chances were shot to pieces from the start.

    This doesn’t excuse where they ended up, nor does it say anything about the anguish they caused for victims.

    But it does, I believe, help to explain what’s happening.

    This is important: cutting reoffending is just a pipe dream unless we truly understand the turmoil and the trauma that define the lives of so many who have ended up in prison.

    This is a golden opportunity to correct some earlier – often catastrophic – state failure.

    I want prisons to be places of care, not just punishment; where the environment is one conducive to rehabilitation and mending lives.

    That’s why I’m so passionate about building new prisons.

    I think it’s frankly a disgrace, that for so long we’ve been cramming people into ageing, ineffective prisons that are creaking, leaking and coming apart at the seams.

    These are places that were barely fit for human habitation when they were built, and are much, much worse today. They design in bullying, intimidation and violence.

    As one staff member told the Chief Inspector of Prisons last year, “I wouldn’t keep a dog in there.”

    So I am proud that this this government has made a £1.3 billion commitment to knock many of these prisons down and to build 9 new ones, including 5 during this Parliament.

    As Policy Exchange’s work has shown, these new prisons can be far more effective at rehabilitating offenders, with modern facilities and smart use of technology such as biometric key systems.

    But it isn’t just about new buildings; it’s about what goes on in them. And here we must think afresh about prison education.

    Over 50% of prisoners have the English and maths skills of a primary school child. Many have learning difficulties.

    But at the moment, governors have almost no control over who their education provider is, or what is taught.

    We have only 4 organisations nationally who provide education in prisons, and the way these services are organised is not producing anything like the results we need.

    We’re focusing too much on the number of qualifications – regardless of their usefulness – and neglecting basic literacy and good-quality qualifications that are actually going to help these people to find work.

    This needs to change.

    Soon Dame Sally Coates will publish her review of prison education.

    It will recommend giving control of education budgets to prison governors, letting them bring in new providers – whether further education colleges, academy chains, free schools or other specialists.

    I can announce we back that recommendation 100%. And we’ll go further: I can also announce we’ll protect those budgets in cash terms, with £130 million a year.

    I also want the best and brightest graduates to want to teach prisoners, even if it’s just for a short period in their career.

    So just as we have backed programmes which get graduates teaching in our worst schools or working in social services, I can announce that I have asked Brett Wigdortz, chief executive of Teach First, to advise on setting up a new social enterprise that will work to develop a similar scheme for prisons.

    And I’m pleased to say David Laws has agreed to chair this new organisation.

    Next, we’ve got to sort out mental health treatment and drug treatment.

    This is one area where I believe that we, as a country, really need to ask some searching questions.

    There’s been a failure of approach, and a failure of public policy.

    In terms of approach, frankly, we are locking up some severely mentally ill people in prison who should not be there.

    And that’s why, as a matter or urgency, I have asked Michael Gove and Jeremy Hunt to look at what alternative provision can be made for more humane treatment and care.

    In terms of policy, I worry that at the moment the design of mental health treatment cuts out governors and staff.

    So I can announce that for mental health, we will now move towards full co-commissioning for governors and NHS England – meaning prison leaders can have much more say in defining the kind of services their prisoners need and how the available budget is used.

    This will begin in reform prisons and, if successful, will apply nationwide from 2017, underpinned by new legislation in our Prisons Bill.

    We will also publish healthcare data on a prison-by-prison basis, so there is proper transparency about outcomes and performance.

    And we will also move towards co-commissioning for drug treatment funding, so governors have more freedom to set up the therapeutic communities, drug-free wings and abstinence-based treatment programmes that their offenders need.

    When it comes to turning prisoners’ lives around though, there is a new front we need to open: tackling extremism.

    We have around 1,000 prisoners who have been identified as extremist or vulnerable to extremism.

    And we know, through intimidation, violence and grooming, some of these individuals are preying on the weak, forcing conversions to Islam and spreading their warped view of the world.

    I understand not only what a problem this is causing for prison management who are trying to deliver a safe environment, but also what a danger the risk of radicalisation poses for public safety when prisoners are released.

    We will not stand by and watch people being radicalised like this while they are in the care of the state.

    That’s why Michael Gove has commissioned a review of this issue.

    And I want to be clear: I am prepared to consider major changes: from the imams we allow to preach in prison to changing the locations and methods for dealing with prisoners convicted of terrorism offences, if that is what is required.

    I look forward to the review’s recommendations.

    But I can announce today two things we will definitely do:

    We will develop a new prison-based programme for countering the non-violent extremism that can lead to terrorism and violence and this will focus on those at risk of radicalisation, regardless of the crime they originally committed – as well as those convicted of terrorism offences.

    And to deal with the most serious cases, just as we introduce mandatory de-radicalisation programmes in the wider community, we will also introduce these in our prisons.

    Behaviour change

    Everything I have spoken about today is about what goes on in prison. But rehabilitation doesn’t end at the prison gates; it’s about what happens outside them too.

    That’s why Chris Grayling began the Transforming Rehabilitation programme – and it means every prisoner now receives support and supervision on release.

    This was a huge landmark reform of the last Parliament that [INAUDIBLE] has the potential to make a real impact on reoffending and public safety.

    Outside prison, I believe we should be really creative and much more open to the new thinking, the new technology, and the understanding from behavioural insights.

    For example, Judge Steve Alm in Hawaii has been pioneering the idea of ‘swift and certain’ sentencing to deal with drug offenders.

    Instead of just locking them up, they are randomly tested for drugs in the community on certain days of the week. If they test positive, they’re instantly jailed for between 24 and 48 hours.

    And then they come back out, and the process starts over again. And the results are fascinating.

    It’s perhaps the most successful community sentence anywhere on the planet.

    Massive reductions in drug use and re-arrest rates.

    Perhaps more effective than even intensive drug treatment in terms of changing behaviour.

    Almost 20 US states have now adopted this model, as well as others like it – including drug courts and problem-solving courts that adopt a similar tough love approach.

    And why do these programmes work?

    Because instead of an uncertain and often random sentence, delivered months or sometimes even years after a crime is committed, this is far more instantaneous and much more demanding for the offender.

    And because punishment is less severe but much swifter and more certain, it allows you to apply punishments far more frequently.

    More punishments, delivered rapidly. A real, meaningful deterrent.

    That is how to bring about lasting behaviour change.

    That’s why a promise to introduce legislation for a new swift and certain sentence was in our manifesto.

    And I can announce today that the Justice Secretary and Lord Chief Justice have set up the first joint working group to examine how to deliver problem-solving courts in England and Wales.

    We have also got to be much smarter about using new technology.

    We have already pledged to expand the use of alcohol monitoring tags, which enforce drinking bans for those offenders convicted of alcohol-related crimes.

    And there is also a huge opportunity presented by new satellite tracking tags.

    Satellite tracking will be ground-breaking for the criminal justice system – meaning that the police and probation service can know where an offender is at all times.

    It means we can tightly manage and accurately track someone’s movements – opening up radical new sentencing options.

    Satellite tracking tags could be used so that more prisoners can go out to work in the day and return in the evening.

    They could help some offenders with a full-time job to keep it, and just spend weekends in custody instead.

    This could revolutionise the way we release prisoners on licence at the end of a sentence, and dramatically toughen up community sentences.

    We’ve made too slow progress in getting this technology on-stream, and I want us to go faster.

    So I can announce today that major new pilots will begin on satellite tracking later this year, and we will have this technology rolled-out right across the country before the end of the Parliament.

    I especially want to look at how we use these tags for female offenders.

    A sad but true fact is that last year there were 100 babies in our country living in a prison. Yes, actually inside the prison. In the prison’s mother and baby unit, to be precise.

    Prison staff do their best to make these environments pleasant.

    Some units even have special sensory rooms, so that babies can see colours, sights and sound – even nature – that they wouldn’t otherwise see inside the grey walls of a jail.

    I understand why this happens. But we should ask ourselves: is it right?

    When we know the importance of the early years for child development, how can we possibly justify having babies behind bars?

    There are actually women in these prisons who were born in the same prison 20 years earlier, and then have ended up there later as criminals themselves.

    Think of the damage done to the life chances of these children.

    I believe we’ve got to try to break this cycle.

    So I want us to find alternative ways of dealing with women offenders with babies, including through tagging, problem-solving courts and alternative resettlement units.

    There is one other area where I want us to be bold, and where we can use the latest thinking to make a difference – and that is to help prisoners find work on release.

    There’s a simple problem: today, ex-offenders are often rejected for jobs out right because of their past.

    I want us to build a country where the shame of prior convictions doesn’t necessarily hold them back from working and providing for their families.

    Of course, I want businesses and organisations to know who they are interviewing.

    If a conviction is ‘unspent’, they need to know about it and make the right decision for that business.

    But here’s my question: should offenders have to declare it up-front, before the first sift of CVs – before they’ve been able to state their case?

    Or might this be done a bit later, at interview stage or before an actual offer of work is made?

    They’ve done it in America – it’s called ‘ban the box’- and I want to work with businesses, including the many who’ve already signed up to the Business in the Community campaign, to see if we can do this here.

    And because I believe in leading by example, I can announce today that every part of the Civil Service will be ‘banning the box’ in these initial recruitment stages.

    Conclusion

    So this is our agenda for a revolution in the prisons system – all centred around those powerful public service reform principles.

    This will take time and a lot of hard work to deliver – just as in education and welfare – and I’m under no illusions, it won’t be easy.

    This system will be hard to change because it is, in some ways, still stuck in the dark ages – with old buildings, old thinking and old ways of doing things.

    So I don’t want to go slow here – I want us to get on with proper, full-on prison reform.

    And the prize is big: if we get this right, we can begin to deliver the lower reoffending rates that will protect the poorest who so often bear the brunt of crime.

    If we get it right, we can change the culture so that our brilliant staff can be empowered to lead the world with new rehabilitation techniques and smarter ways of managing prisoners.

    If we get it right, we can change lives, improve public safety and bring hope to those for whom it was in short supply.

    Turning waste and idleness into prisons with purpose. Turning remorse and regret into lives with new meaning.

    Finding diamonds in the rough and helping them shine.

    That is our mission. Let’s get to work.

  • Michael Portillo – 1997 Speech to Centre for Policy Studies

    Below is the text of the speech made by Michael Portillo to the CPS at the 1997 Conservative Party Conference held in Blackpool on 9 October 1997.

    I was delighted to be asked by the Centre for Policy Studies to give this lecture. But as a member of the Cabinet which led the Conservative Party to its greatest ever defeat, and as a former Member of Parliament who lost to Labour on a 17 per cent swing, you will understand that I am not here to lecture anyone.

    On the Friday morning, the day after the general election, even before Tony Blair had arrived in Downing Street, I received a telephone call of condolence from Lady Thatcher. But it was condolence delivered in her inimitable style. It was a call to arms and to renewal. She reminded me how after the defeat in 1974, the party had to rebuild, and in particular begin again its work on ideas and policy. That was when the Centre for Policy Studies was founded, and I for one hope that the CPS will be a source of new thinking in our present difficulties. But that process cannot be based on nostalgia for old ways of thought. An idea whose time has come can quickly become an idea whose time has gone. The value of the CPS’s work has always been its originality and its fitness for the day. Even the enduring principles upon which a party should be founded must be given contemporary forms of expression.

    Let us begin by recognising the scale of our defeat and of our problem. Perhaps as one who went in an instant from being in the Cabinet to being a member of the general public, I am qualified to offer an opinion. I do not accept the view that the Conservatives lost the election of 1997 because we abandoned one-nation Toryism or split the nation. We did not. I will return to that point in a moment. The causes of our defeat were different. I would like to identify what I believe to have been the four principal factors.

    First, the party became associated increasingly with the most disagreeable messages and thoughts. Much of that linkage was unjustified, but since it is what people thought – what people still think – it must be appreciated as a deeply-felt distaste, rather than momentary irritation. We cannot dismiss it as mere false perception. Tories were linked to harshness: thought to be uncaring about unemployment, poverty, poor housing, disability and single parenthood; and considered indifferent to the moral arguments over landmines and arms sales. We were thought to favour greed and the unqualified pursuit of the free market, with a “devil take the hindmost” attitude.

    Second, we abandoned almost completely the qualities of loyalty and the bonds of party without which party effectively ceases to exist. Some of this was ideological. Passions about the future of our country rightly fired people up, but wrongly led them to attack and despise their colleagues. Part of it was egotistical. There were MPs anxious to oblige whenever the media came looking for dissent, seizing the opportunity to be famous for fifteen minutes. But now we are out of government, their views are sought more rarely, and their once-famous faces are fading in the public memory.

    We must re-discover the old instincts that led Tories to support one another and to rally round. Loyalty was never a secret weapon: it was because it was so visible in public, and reinforced in private, that it was so effective. The impact of disunity upon us is clear to see. The party must in the very near future learn again to display the camaraderie and common purpose that are fundamental to a party’s prospects. Our new leader, William Hague, has every right to expect our loyalty publicly and privately. If he does not get it, we stand no chance of being re-elected. He has shown that he will lead. Now the party must show that it can be led.

    Third, we were thought to be arrogant and out of touch. Much of it may have been no more than personal mannerisms that grated on the public after years in office. Some of it was insensitivity – using the language of economics and high finance when people’s jobs and self-esteem were at stake. And when people looked at the composition of our party, they thought it too elderly, or too vulgar, or too out of touch in vocabulary and perceptions, or in some other way, unfamiliar and unrepresentative.

    Fourth, there was sleaze. I did not believe all that Conservatives were accused of . Even today, I do not think that wrongdoing was any more prevalent in our party than in others, and I expect the rotten boroughs of the Labour Party to prove as much in coming months. But it was certainly bad enough. Sleaze disgraced us in the eyes of the public. Their perception was of corruption and unfitness for public service. Such distasteful perceptions can endure and do us damage for a long time.

    We should face these issues head on and deal with them. The last years profoundly disappointed our supporters, and disgusted many others. Those of us who were in the parliamentary party, and those of us who were in the government, bear a particular responsibility.

    But let us also be clear about our successes and achievements. The Labour Party is determined to create the myth that our eighteen years represented a period of misery and failure. So let me deal briefly with what really happened.

    The Conservative Government took a country that was on the brink of being ungovernable and restored the authority of government and the ability of management to manage. We replaced a debilitating corporatism with a climate of opportunity. We turned sullen nationalised industries into high quality public services fit for a modern economy. We pioneered the view that the job of government was not to create wealth itself, but to establish the conditions in which enterprise could flourish. That insight is today shared by virtually every government in the democratic world. In that context we talked about the benefits of the free market.

    But we never argued that free markets were everything. We increased sharply spending on social security (not because of unemployment, but to help more people and pay higher benefits) and on health and education. We were determined to modernise our economy and to make Britain competitive, but we softened the effects of industrial change with policies to help the inner cities, with regional aid and training programmes for those without work. Ministers fought successfully to attract inward investment and to win contracts abroad. We were anything but laissez-faire. Above all we pursued policies that brought Britain success. At the end of the Tory period we had a greater proportion of our people in work than our European neighbours. We had growth and low inflation. The strength of the British economy is now recognised without any carping. Everyone knows that that was our work.

    Nonetheless, at his conference last week, Mr Blair made the point that twenty years ago the IMF came to bury Britain, but now they praise us, claiming into the bargain that New Labour has friends everywhere. In fact, the IMF can praise Britain only because they believe socialism has been buried. It is the economic policy of the last government that has friends everywhere, but some of them in this country will yet prove to be false. I well remember the verdict of the IMF on the Labour government. I shared the feeling of national humiliation brought upon us all by the men who were Mr Blair’s role models at the time. I recall my own sense of despair for the unemployment and waste that would follow from Labour’s enslavement to the trade unions and their refusal to govern in the interests of all the British people.

    Labour’s new statements of policy are an accolade to our government. Labour says it has accepted our reforms. They signed up to privatisation, trade union legislation, free enterprise, low levels of income tax and even Conservative-set levels of public spending. The 1990s did not discredit Conservative party policies. They produced a humiliation for Labour as it gradually voiced support for all that it had once opposed. It could be elected with a huge majority only because it had come to sound like a Conservative party. Mr Blair’s great insight was that to avoid continuing electoral humiliation, his party had to accept intellectual humiliation. For many in the Labour party, winning power in that way has been a bitter and degrading experience. Those people cringe when they hear Gordon Brown lecturing fellow Europeans on the need for flexible labour markets, so validating Conservative thinking. They loathe his commitments on taxation, such as they are. No wonder that they now hate us so much.

    I emphasise this. There is much for the Conservative party to learn and to put right. We shall do it. But that is not to say that everything that we did in the past was wrong. Very far from it. We have many achievements of which we can be proud. The Conservatives did things in the last eighteen years that were imaginative, radical, and good for our people. They were copied by many abroad and by our opponents at home.

    It is important too that we maintain clear markers as we make changes in the party. It would be a great mistake for us to try to copy Labour’s techniques and style in the belief that that offers a recipe for future success. There is a phoneyness and insincerity that clings to Labour, as it must to a party that was willing to say anything to get elected. Labour is the party of fashion, bending day-by-day to catch the wind blowing from its market researchers. The Conservatives need to be attractive, but we will not become lifeless bodies borne on the changing tides of populism. If Labour remains wedded to fashion, then its time may be short indeed for nothing is so certain as that fashions change. When I see Mr Blair basking in the glow of Noel Gallagher, I remember Harold Wilson’s love of being pictured with the Beatles or Ena Sharples. But rubbing shoulders with idols does not guarantee that the star dust will stick, and infatuations with politicians pass quickly.

    Our task is quite different from the one that Labour faced in opposition. They modernised in order to marginalise their core beliefs. We must rebuild our party on central Conservative principles applied to today’s new challenges. If we adhere to principles through changing times, we will win respect, at a time when Labour’s modishness will look as tired as Harold Wilson’s HP sauce and Gannex mac.

    The Conservative message is attractive, and if properly explained it touches a chord with the majority. Its main elements can be summed up by the words choice, aspiration, opportunity, duty, and compassion.

    Let me take those words in turn. We believe that government, even where it plays a critical part in our lives, as it does for example in health and education, should organise things so that people have choice, and so that there is diversity in the sorts of service on offer. There is dignity in choice. It emphasises that no system can or should believe that it knows best. Everyone, even people in need, maybe especially people in need, have a right to choice. Choice is also the means to improvement in the service to all. There is always a better way to do things. We can adapt the ways in which we care for people, or the ways we teach children, according to evolving technology and changing ethos. Where there is choice, those providing services are free to adapt what they offer, and have the incentive to do so. Different teachers doing things differently, or different doctors, offer the public a comparison. It may be that one of them has hit upon something that is clearly better, at least in the general opinion. That means that other patients and parents will want to see the same method or approach adopted in their surgery or school. In that way choice leads to innovation and then to a widespread improvement.

    But if government is unwilling to allow diversity, this process will be choked off. Labour still thinks in terms of uniformity. Its objection to fund-holding GPs is that some people may get a better service than others. The logical response to that should be to encourage all GPs to become fund-holders as soon as possible, so that the advantages of the system may be available to everyone, not put the system under threat. Labour’s attitude to grant-maintained schools is similar. Again, logically if those schools are offering something that others cannot, then the government should encourage parents to consider pushing their own school towards GM status. If the government really believes that GM schools are no better than others, then there is no reason to tamper with their independence.

    Choice brings progress. We can walk only when we allow one foot to move in front of the other. The other foot then catches up and passes it. The government should not be resentful of, or hostile to, diversity. It is only by allowing those with good ideas to edge ahead, and helping others to catch them up and then pass them, that our country can move forward.

    My next word was aspiration. We all hope in this life. We hope to make the most of the gifts we have been given. We hope to improve ourselves. We look forward to achieving the goals that we have set ourselves, or to winning the plaudits of those whose opinions matter, such as our parents and our teachers. We aspire to be part of an improving world, to play our part in making things better. We look to leave something behind: our reputation, an example to someone else, children who can remember us with love and pride.

    There is nothing wrong with aspiration. Indeed, without it we are certain to fail to achieve our potential. Of course there are materialistic aspirations too. Adam Smith considered that the urge to better oneself is the driving human impulse from which “public and national, as well as private opulence, is originally derived”. In the 1980s the Conservatives were associated with aspiration and we inspired people to believe in themselves. Labour sought to discredit both our policies and the notion of self-improvement, denouncing those who looked for something better as greedy and selfish. Some were, but many were not.

    Today, Labour has nothing to say to that majority who believe that, given the chance, they could make something of themselves. Labour is the leveller. Labour is the state. Millions of people in the public services are about to discover that Labour has nothing for them. No improvement in services, because they are suffocating the dynamic of creative change, no improvement in status and no advance in pay. People in business will discover that Labour is unsympathetic to profit, and ignorant of the struggle that is involved in running and building a business. Labour is ever on the lookout for an opportunity to launch a crude populist attack on the wealth creators. Those who look to do things better and to be something better, whether they work in the public or the private sector, are, as ever, a constituency that the Conservative party understands and must address.

    It has recently been argued by Ian Gilmour and Alan Clark that the Tories have been brought to their present state of affairs because, from the accession of Mrs Thatcher onwards, they abandoned one-nation Toryism. With due respect for two of the party’s most eminent historians, it is worth taking a moment to put the counter-argument.

    For about a century, from the time of Disraeli, a Tory party that was led mainly by aristocrats, expressed its deep concern for social conditions in the country, and often played a distinguished role in improving them. That was much to the credit of our party, and brought great electoral success. But the form that it took was necessarily a product of its time. It is more than thirty years since we were led by an aristocrat, and the rise of Edward Heath, Margaret Thatcher and John Major each demonstrated that the Conservative party now believed in, and provided a model of, a modern form of one-nation Toryism. Gone was any hint of patronising attitudes towards “the poor man at his gate”. Britain had become a single nation in which people from the humblest backgrounds could rise to the highest offices.

    Our task was to make such translations easy and progressively more unremarkable. It was a theme pursued by the Heath and Thatcher governments, and it was summed up by John Major’s aspiration to create a classless society. Through all three premierships, more money was spent on health, education and social security, and much work was done to increase opportunity.

    During the Thatcher years, we were accused of departing from one-nation politics in particular because of our economic policies and because of the riots.

    Huge changes took place in British industry. It was brave to allow the modernisation of Britain to proceed at such a pace, but time has proved the wisdom of doing so. Britain’s economy is now well-placed to compete and create jobs. Countries like Japan, whose policies in the 1980s disguised growing inefficiencies in their companies, in fact merely postponed to today the problem of closing uncompetitive businesses. Britain by contrast has greatly improved job security today, because of the approach we took fifteen years ago.

    The worst strife of the period surrounded the miners’ strike. It was essential to stand up to industrial militancy and challenges to the rule of law. As it turned out, that important point could not be carried without conflict. Perhaps there is now a danger of forgetting how much was at stake. It may be that today’s Labour party has a clearer understanding even than we do about how much an end to militancy mattered to the conduct of democratic politics.

    But in any case, it does not make sense to me to argue that we lost in 1997 because of the alleged departure during the 1980s from a traditional concern for the unity of the nation. The voters in the elections of the 1980s and in 1992 seemed to recognise the case for our policies. John Major’s government, building on the successes already achieved, was different in tone and style from Mrs Thatcher’s. In no sense could John Major be mistaken for a “two-nation” politician, and his concern for social issues was palpable. It was shared throughout his government.

    I conclude both that the Tories never departed from a one-nation approach, but rather updated it for their times; and that even if we were portrayed by some as having abandoned our traditional position in the 1980s, it is plainly unhistorical to attribute the defeat of 1997 to that.

    My third word was opportunity. We can never rest from the labour of creating more opportunity. More opportunity for people to have the operation that brings them relief from pain. More opportunity to own your home and shares. More opportunity to enter further and higher education. More opportunity to work, in Europe’s most dynamic economy. Government has to be proactive to prevent sclerosis in the system that limits opportunity. Above all, opportunity is about education. It is the ladder by which our children can climb, leaving behind the disadvantages of birth and background and ascending to the heights of their potential. During all our eighteen years we battled against the so-called progressives whose educational theories had become remote from the world of real children in the classroom. The measure of our success is that David Blunkett now says that he expects parents to complain to his ministry if teachers refuse to adopt whole-classroom teaching or teach literacy by traditional means. Does he not blush when he says it or when he looks back to his days running Sheffield? Let us hope that what he says now signals a commitment by all in education to equip our children with the basic skills, and with the competence in the new technologies, that together lead them to self-fulfilment and success in the world of work.

    Now I come to duty, and to the most fundamental misunderstanding about the modern Tory party. It has always been the Conservative view that we all have duties. Those who are successful, powerful, or rich, have special duties. People who achieve in life should be willing to put something back, and to share with others the joy and the fruits of doing well. We are social animals and society is what we make it. We cannot pretend that society is a given state of affairs that we are powerless to influence or change, because it is we who are society.

    That is what Mrs Thatcher meant when she said there is no such thing as society in the abstract. There is no unalterable Marxist structure which robs individuals of free will, or excuses any of us from the acts we undertake or from which we refrain. We must not try to escape our responsibilities by making something we call “society” the scapegoat for the evils and bad behaviour that we feel unable to alter. Each of us must, in our own way, in our families and in our communities, do what we can. None of us would wish to live in a grabbing and inhumane society made up of greedy and selfish people. Our enemies may have sought to attach such people to the Conservative party, but they have nothing in common with our beliefs.

    The last word I used was compassion. It is an essential ingredient in Conservatism. We have never lost it, but the world does not believe that. Our reputation has suffered because Conservatives don’t wear their hearts on their sleeves. They don’t like humbug or display. Their compassion is largely of a practical sort: what can we actually do about the problems that we see around us? That is why Conservatives are to be found in such large numbers working for voluntary organisations. Conservatives have a scepticism about panaceas and about the possibility of government solving problems with a flourish of a pen. But that common sense approach must not mask the fact that concern for others and magnanimity are important qualities of Conservatism, and the instinct for social cohesion transcends the nation. The policies that we followed in government provided for a large-scale increase in prosperity and new opportunities for millions of people. To take just one example, the overall position of women was unrecognisably improved by the opportunity for so many to work and earn decent money. But not every one prospered from being in work, and we did not overlook that. Peter Lilley as Secretary of State for Social Security devoted much intelligent effort to improving the help that government could bring.

    Conveying to the British people accurately and feelingly the true Conservative position on those five words will do much in itself to render us re-electable. The CPS will have a lot to contribute on those and other subjects. Caring about ideas and winning the battle of ideas, are important ingredients in our future success. Freed from the burdens of office, we can apply our Conservatism anew to the present circumstances of our country. I would like to give some examples. In the second half of this lecture I shall point out those areas where I believe the release from the responsibility of government also frees our party from the grooves in which we were travelling. I shall deal with the devolution of decision-making, employment policy, government regulation and government’s proper approach to people’s personal relationships.

    The Conservative party is committed to Britain, to British interests and to British commercial interests. Of course, I think that Britain’s relationship with Europe is a most important question. But I will not talk of it tonight. Europe is a word that tends to make people deaf to everything else you say, and I would rather be heard on other issues today.

    The Britain we defend is undergoing huge constitutional change, to much of which we are opposed. But the Conservative party is not an organisation for the turning back of clocks. For example, the Scots are to have a parliament. That is their choice, and we must accept it, unless and until experience leads them to a change of mood. Our interest and duty is clear. We must offer effective participation in the new chamber. We must ensure as best we can that the government of Scotland is carried on well. In particular, since Labour is creating extra tiers of government we must ensure that the new body does not suck towards itself responsibility for decisions that should be taken at local level. We must conduct ourselves in such a way as to make unattractive the plans of the nationalists who wish to use the new institutions to promote separatism and the dissolution of the Union.

    We must re-assert our confidence in decision-making at the local level. Contrary to the general perception, it was a strong theme of our last government as we passed powers to hospitals and schools. But the extremism of some councils led us to limit the powers of local government. Nonetheless, the policies of partnership, put into practice by Michael Heseltine, led some of the worst Labour authorities to reform. Some of them were led by him to accept again the central role of commerce in the life of our cities. We re-awakened their civic pride. The Labour party promises the electorate that it will bring its remaining rotten boroughs into line. Let us hope so. In any case let us make clear our belief in the importance of local government and our willingness to trust the people. Our representatives in local government will provide the foundations of our recovery. We are already winning seats in local elections. But electoral considerations apart, Conservatives are de-centralisers by nature. It is one of the reasons we distrust the idea of centralising power in a federal European Union. Let us ensure that our policies are consistent across the piece and that at every level we defend the democratic right to decide political questions at the most local level that is practical.

    The reforms that our government made in industrial relations were some of the most important changes, enabling Britain to become modern and competitive. Labour has still not grasped what makes employment grow and I fear that their decision to sign the social chapter will cost our country many jobs. To judge by the energy with which Labour advocates flexibility in labour markets, I guess they fear it too. But they have given up the British veto and we can anticipate a steady flow of legislation, against which we have no protection, that will impose on Britain the job-destroying inflexibilities of our neighbours. Continental labour legislation is often highly prescriptive. Such legislation is ill-suited to our times. In an economy transformed by technological change, in which work patterns have changed so much, Labour’s employment policies contradict their claims to be economic modernisers. Compulsory union recognition and the social chapter are remnants of attitudes to the work place which have become anachronistic.

    We must not blame only legislation at Community level. It makes me laugh to hear the last government portrayed as a mad worshipper at the shrine of the free market. We were rather notable regulators. We passed volumes of new rules and laws interfering with almost every aspect of business and social life. Some of it was thoroughly justified. Regulation has a proper role in protecting people as employees, investors and customers. But we should not believe that we made great advances in reducing the size of the state. Nor I hope will this government be complacent about the burden that it can impose on business and social activity if we are to compete effectively and if people are going to perform their duties of care towards one another.

    There must be no confusion about what we want. We look for flexibility at work because it is the critical quality in a modern economy if we are to produce anything close to full employment in a world of rapid change and extraordinary competitive pressures. Flexibility is not a means to provide poor or basic conditions at work, but rather the key to enabling people to be in work and to improving their terms, conditions and perks. The better those terms are, the more contented people will be, and so better motivated and more effective at winning business. That in turn will underpin their job security and make possible further increases in their quality of life at work. The extraordinary feature of the last twenty years has been that an old economy like ours has adapted so well to change, providing opportunities to work for such a high proportion of our people. Conservative policy must both preserve the flexibility that has enabled us to do well, and encourage the development of increasingly enlightened policies in business to make work satisfying and enjoyable, and spread a feeling of security even in a world of change.

    The Conservative party needs to be as much of a pro-business party as ever before – indeed more so since Labour is now posturing on that ground. We must be willing to defend the role of incentives and profit. But we must be clearer in our advocacy of responsible and self-enlightened capitalism. In economic terms, that is a capitalism that derives the greatest possible benefit from human capital. In more everyday terms, it means that our best companies are also those who treat their employees best; consulting, informing and stimulating them. It remains the case that such arrangements are best achieved voluntarily. This government is on the wrong track in trying to force union recognition, and is having to backtrack on the minimum wage. Tories, however, must embrace the co-operative mood in business, not least since that new spirit has come about as more people have come to understand our message that we need constantly to improve our efficiency and competitiveness if we are to move forward and create more jobs.

    There are a few neanderthals left today in the trade union movement. But the Conservatives will want to be part of a dialogue that can include all those who genuinely want to see our businesses succeed, excluding only those who still want merely to ossify British industry or defend vested interests.

    As you will see, I believe that it is extremely important for the Conservative party to deal with the world as it now is, rather than re-fight battles that we have already won, continuing to flog a dead dragon, as it were. This must apply also to our attitude to the personal relationships that people choose to enter. This is an area where we got into some bad scrapes when we were in office.

    First, let us deal with sexual misdemeanours amongst MPs . William Hague is right to make a clear distinction between, on the one hand, misconduct of a financial nature or some other betrayal of public trust, and on the other hand, problems in personal life, such as marital breakdown. A betrayal of public trust must lead to resignation, and we shall watch carefully how thoroughly Labour does in fact clean out its Augean stables. But private problems and indiscretions should not normally lead to the end of a person’s career. A sense of proportion is, it seems, returning, as we see from the way that recent problems have been reported. You may think less highly of someone who exhibits weakness in his private life, you may choose not to support or re-elect him, but we should not require people to be driven from office in those circumstances.

    The Conservative party has always voiced unreserved support for the family. We believe that children are best brought up in stable family arrangements with two parents. But we admire those many people who are doing an excellent job raising children on their own. The important thing is that people recognise the responsibility they have when they conceive children and do all they can to provide a warm, caring and balanced home for them. Our society has changed. For good or ill, many people nowadays do not marry and yet head stable families with children. For a younger generation, in particular, old taboos have given way to less judgemental attitudes to the span of human relationships. There remain many other people to whom the new norms seem all wrong. The Tory party is conservative and not given to political correctness. Still the party never rejects the world that is. Tolerance is a part of the Tory tradition. I believe that the Conservative party in its quiet way is as capable as any other of comprehending the diversity of human nature. That must go hand-in-hand with policies that reinforce the responsibilities that every parent has for his or her children. That is an area of proper concern for politicians representing the legitimate interests of our society.

    Now, a word about tactics. There are two things that the Conservative party needs very badly. One, I mentioned, is loyalty. If we cannot re-invent it we cannot govern. The other is patience. I read somewhere that there was frustration with William Hague for not yet coming up with the next big idea. I accord that remark the prize for the silliest thing said since the election.

    The public is not yet ready for such an innovation from us, even if a big idea were a thing to be conjured up at will. People need a rest from us, and we need time to reflect and listen and come to understand one another better than we have of late. We certainly need to do a lot about ourselves. We need better and different organisation. We need a broad and stable financial base. We need to spread our appeal and attract different sorts of people: different ages, social types, ethnic groups and cultures.

    As for policies, we should be in no great hurry. Get straight what are our core beliefs. Sort out the confusions and false signals that arose while we were in government. Take a fresh look in the new circumstances. But there is no call to rush headlong into inventing new approaches.

    Our party will renew itself. The new intake of MPs is of extremely high quality. Just as happened with Labour, those new people will be the engine of our revival. Ministerial office will be theirs, but they must bide their time patiently too.

    On the night of the election I wished our new government well, and I do so again. Conservatives are patriots and we wish to see our country succeed. You will not see us gloat over national reverses, nor talk down our successes, as Labour did when we were the government. We wish to see Britain behaving honourably, being an influence for good in Europe and the world. We wish to see the economy remain strong. We do not look to defeat Labour on the back of national failure. There will be sufficient grounds without that to argue for their removal.

    I do not underestimate Mr Blair or his achievements. In the years before the election he skilfully laid bare the areas of life and policy where the public felt dissatisfied and angry with the Conservatives. He did not win merely by default, but because of his talent for capturing the public mood. We will learn from that.

    Today the Labour government looks very strong and confident. But problems lie ahead. They don’t know where they are headed, and that is dangerous. Mr Blair’s great achievement is directionless leadership: he appears to be in control, but no one knows to where he is leading. I have made many mistakes in my career. I suppose we all have. But few people have been consistently wrong on all the great issues that faced our nation over the last fifteen years, as Mr Blair was. Last week, in a speech which was much acclaimed, Mr Blair failed to define the purpose of his government . I perceive no ideological roots. I can detect no sense of direction. Labour has a strong sense that it cannot undo what we did. But they do not understand why it was right to do it. They do not accept the politics of freedom and choice that lay behind our agenda. Labour grasped that it had to adopt our rhetoric. But they will in the end be judged not on what they say but on what they do.

    Labour has been guided by the wish to destroy us; and by the determination to be re-elected. That is not a recipe for governing well. You cannot run an administration forever on the principle that you are unwilling to do anything that offends. You cannot substitute focus group government for cabinet government. Labour is a coalition brought about to win power. That will to win power is the one idea that the members of the government hold in common. But with the passage of time, that will prove an insubstantial glue. The signs of division may today be no bigger than a small crab in a jar, but they will grow.

    This government is too bossy, too contemptuous of parliament, too self-satisfied and too little criticised in the media for its own good or for ours. The wheel of fortune turns and that which once appeared fresh, with the passing of time goes to seed.

    I have set out the many things that we must do to present ourselves again as attractive and suitable for government. But on top of all that, what the Tories need is patience. Principles we already have. Opportunities there will be. Our time will come again.

  • Michael Fallon – 2015 Speech on Reforming Defence

    michaelfallon

    Below is the text of the speech made by Michael Fallon, the Secretary of State for Defence, at the Institute for Government in London on 28 January 2015.

    This last year has seen huge upheaval across the world.

    We’ve seen sponsored aggression by Russia in Crimea and Ukraine.

    We’ve seen non-state actors like ISIL and Boko Haram attempting to usurp existing territory.

    We’ve seen Islamist terrorists striking in Canada, Australia, Pakistan, Brussels and Paris.

    These uncertain times underline why the defence of the realm is the first duty of government.

    And that agile, well equipped, armed forces, properly funded, are not a luxury but a necessity.

    But, defence is better placed to respond to the threats we face now because over the past four and half years we have delivered one of the biggest defence transformation programmes undertaken in the western world.

    And because of our economic plan, as you can only have strong defence with a strong economy.

    Today I want to look at what we’ve achieved so far in transformation, the lessons we’ve learned from it, and how we must keep greater efficiency as a continuous process.

    Scale of the problem

    First we need to go back to 2010 and the chaotic legacy we inherited. Not just the £38 billion black hole, not just contracts like the carrier where the penalty for going over budget was largely to be shouldered by the taxpayer.

    But a culture beset by an inability to take tough, timely decisions and an institutional focus on short-term affordability at the expense of longer term planning, exacerbated by self-defeating competition between the three services for resources.

    As Lord Levene’s original report indicated MOD was reaching breaking point.

    Making savings

    So we had to act decisively to sort out this mess.

    We had to scrap much-loved capabilities such as the Harriers and HMS Ark Royal.

    We cancelled out of control procurement programmes like Nimrod.

    We’ve sorted out the rebasing of our troops.

    And yes, we’ve made some tough choices about the size of the armed forces.

    Although we did so in a way that has preserved our front line clout.

    Maximising assets

    Making short-term savings was tough.

    But a tougher challenge was finding new ways to maximise our assets.

    Until I became Defence Secretary last July I certainly didn’t fully appreciate the sheer scale of MOD.

    We own 1% of the UK landmass, our budget is £34 billion, we have assets worth £120 billion, we have a quarter of a million strong workforce and more than 4,000 separate sites.

    If the MOD were a listed company it would easily be placed towards the top of the FTSE 100.

    But the diversity of our portfolio:

    – having to provide armed forces able to conduct campaigns across the world

    – managing scientific establishments, police and fire services

    – providing specialist medical care and pensions

    Puts the MOD in a league of one in the UK.

    And we recognised that if the department was to provide the military capability our country needs it had to become both more effective and more efficient. That meant adopting a bold approach more commonly associated with the best of the private sector to get the most of our valuable assets.

    Our more strategic Defence Board, including the Chief and Vice Chief of the Defence Staff, civilian officials as well as now 4 highly experienced non-executives from business, provided the necessary leadership, while Lord Levene’s blueprint was a guide as we drove through a clear strategy based on three imperatives that I want to share with you this morning

    Making MOD an intelligent customer

    First, it was about turning MOD into a more intelligent customer.

    You get more out of people, of course, by giving them more responsibility, yet, in MOD, the centre held on too tightly to the reigns of financial power.

    So we devolved budgets to frontline commands, meaning the service chiefs effectively became chief executives of multi-billion pound organisations. Three of them now based with their commands rather than at head office.

    And with far greater control over spending and how they meet their outputs they now have a vested interest in knowing the cost and the value of everything.

    We’ve seen just this week how the new Chief of the General Staff has the freedom to propose structural changes to the army command.

    We created Joint Forces Command as the glue that binds the capabilities of the single services together.

    That’s an organisation of 20,000 people and annual budget of over £4 billion run by a headquarters of around 300 people.

    Similarly we’ve created a more strategic head office, with 25% fewer posts than we had in 2010

    We’ve cut the red tape that can bog down any large organisation.

    250,000 computer users used to have to print out and re-sign a form every year to use the IT system.

    No longer.

    We’re also giving staff better tools to do their job.

    We’ve improved our management information.

    It was staggering that such a large organisation could fail to produce such a single version of the truth…

    Before every Board meeting now I have a comprehensive report on my desk…with an exhaustive overview of what’s going on including the readiness of each of our ships, aircraft and units.

    Commissioning services

    Making MOD a more intelligent customer was only half the battle.

    Some areas of activity, such as the delivery of military force, are kept within the public sector for good reason.

    But it is often more effective, more cost-effective, to draw on the private sector to support our core activities.

    Our long deployment in Afghanistan…where, at their peak, contractors accounted for 40% of the UK force deployed …provides a prime example.

    So instead of accepting the status quo we asked whether another organisation could do a better job?

    We brought in a strategic partner to get to grips with the sprawling defence property estate.

    This innovative contract will save a total of £3 billion over its ten year lifetime.

    We’re already seeing wholesale changes to the way we occupy space. We’ve collapsed 3 buildings in London into one, savings millions in running costs and releasing the Old War Office for redevelopment.

    And we’re not immune in Main Building from this since we now plan to share part of the 626 thousand square feet of MOD’s main building with other parts of government.

    By concentrating resources around a significantly smaller estate we can deliver improvements as well as releasing land and buildings for housing and commercial use.

    The strategic partner option wasn’t the only approach to commissioning services.

    We’ve also looked at what each service can learn from each other. Why did the army still repair and overhaul much its fleet of vehicles, through the Defence Support Group, when the RAF and the Royal Navy had already outsourced this activity? There was no good reason for that, so this month we sold the Defence Support Group for £140 million.

    A 10 year contract with the buyers will generate savings to the army of around £500 million.

    Now if there was one area where private sector expertise was really needed it was, of course, in procurement.

    We’ve been trying to get this right since the days of Samuel Pepys, the Chief Secretary of the Admiralty in the 1670s.

    Procurement accounts for around 40% of our spend.

    Yet Bernard Gray’s 2009 review of acquisition and Defence Equipment and Support (DE&S) highlighted a toxic cocktail of problems:

    – equipment ordered without any idea of how to pay for it

    – a lack of clear boundaries between the military customer and Defence Equipment and Support

    – and programmes that on average overran by 80% with cost increases of 40%

    So we turned DE&S into a bespoke central government trading entity.

    It now has its own board with a chief executive…as well as significant flexibilities, agreed with the Treasury and Cabinet Office, to recruit, reward, and manage staff along more commercial lines.

    The new organisation not only has a far more business-like relationship with its military customers but it’s a more effective counterpart to industry as well.

    One area I am focused on is where we have to award contracts without competition either for national security reasons or because there is essentially only one supplier. We spent around £6 billion a year in this way.

    That’s why we’ve now set up the Single Source Regulations Office as an independent regulator to implement the legal framework that came into force in December to ensure that our contracts do deliver value for money. And I will be setting out further thoughts on how to encourage companies to think of themselves as partners rather than suppliers in the coming weeks.

    3. Getting more out of the whole force

    Thirdly, how do we get more out of our whole force.

    Reform relies on professional, adaptable and committed people.

    In defence we don’t just depend on excellent military and civilian personnel but a whole force of Reserves, contractors and industry.

    And we knew we could do more to integrate this wider defence community.

    Our fleet of voyagers provides a good case study of excellent practice.

    The most modern tanker and strategic personnel transport on the market:

    – is owned by a private contractor

    – it is tasked by the MOD

    – it is operated by the RAF

    – alongside civilian crews who can then become sponsored Reserves if required

    – with a contract that’s overseen by MOD civilians and the RAF

    A truly collaborative framework.

    We’re also making better use of the whole force by aligning our interests.

    By working with 3 main prime contractors we’re committed to delivering £900 million of savings over the next 10 years on our submarine programme.

    On Apache helicopters, we have a 5 year support contract that will generate savings of £149 million.

    Our three new naval basing contracts signed last October not only support, manage and maintain our bases and warships but will deliver savings totalling £350 million over the next 5 years.

    And an innovative approach to complex weapons, land and maritime anti air missiles, and future anti-surface guided missiles, is putting us on track to yield financial benefits of £1.2 billion from the period between 2010 to 2019.

    Results

    So the results of that reform programme, I suggest to you, speak for themselves.

    Four and a half years ago we were in a dire financial situation.

    Today we have earned a strong reputation across Whitehall for competence.

    We get rid of old property that we don’t need.

    Whether it’s an old barracks, a country house, polo fields in Edinburgh, or Brompton Road tube station sold for £53 million.

    That approach has generated nearly £380 million.

    We’ve taken the same tack with equipment including selling, for example, 123 surplus armoured vehicles to the Latvian army, bringing in almost £40 million and strengthening friendship with a critical NATO ally.

    Our reforms have put us on track to deliver the £4.3 billion of efficiencies agreed in the 2010 spending review…as well as a further £1.1 billion agreed in the 2013 spending review.

    A recent NAO report showed we have reduced costs by almost £400 million in our major projects, our best performance on cost since 2005 and our best performance on time since 2001.

    As a result, the Treasury has granted us the largest delegated budget of any Whitehall department.

    According to Lord Levene in his 2014 report, and I quote > MOD is now a very different animal from that which I left some 20 years ago, especially in terms of showing that they can be trusted to manage the money. A leopard really can change its spots.

    Equipment

    But the truest measure of our success for me is what it means for the frontline.

    Our 10-year £163 billion equipment plan is now allowing us to invest in every domain.

    From the Queen Elizabeth carriers to the F35s that will fly off them

    From the highly advanced Scout armoured vehicles, the biggest army order in a generation, to hunter killer submarines as sophisticated as the space shuttle.

    Such investments augment the utility of our armed forces.

    They create highly skilled jobs across our country.

    Becoming permanently fit

    So we have replaced chaos with competence. Where there was a deficit, there is now a balanced budget; where there were cost overruns, there are now cost savings; and where equipment programmes were late and over-budget, they are now overwhelmingly on time.

    And there is more to come.

    We’re looking to bring in commercial partners this year to run our military port Marchwood and are selling the government pipeline and storage system.

    We plan to announce the preferred bidders by the end of March.

    We’re also reforming our logistics and supplies organisation so that those who performed the Herculean task of drawing down equipment in Afghanistan won’t find themselves bogged down by aging infrastructure and IT.

    There’s an in-house and two industry delivery partner proposals on the table.

    And next month, I will announce the outcome.

    That’s three more privatisations before the end of this Parliament.

    But the job is far from over.

    With continuing demands on our resources, with the cost of manpower and equipment rising, with competition from emerging nations increasing, efficiency in defence cannot be a one-off.

    As in any big, mature, organisation MOD must not merely be match-fit. For any spending review it must be permanently fit.

    Every year we should be looking to take out unnecessary cost, to improve productivity, to sweat our assets so that we can better support the frontline.

    And not every contract or programme has or will be successful, so we must act decisively where there are failings or contracting models that aren’t working.

    But we’re in a better place, we understand how to drive efficiency.

    Whether that means maximising our property portfolio while supporting the target of 150,000 homes over the next Parliament.

    Whether that means giving greater freedom to service chiefs to incentivise innovation and deliver the structures to achieve military results.

    Whether that means benchmarking to ensure that our military productivity matches up to that of other countries.

    Or whether ensuring we are focused on maximising our assets. The private sector pays interest on the capital it borrows to invest. That’s a pretty strong incentive not to hoard assets. Regardless of whether something similar is appropriate for the public sector, for a department with assets worth around £120 billion, managing the balance sheet should be as important as hitting the annual budget.

    For example:

    – do we need 57 separate sites within the M25?

    – what’s the right number of airfields?

    – what lessons can we learn from consolidating the number of submarine bases to one?

    – how many cars and vehicles does the MOD and the armed forces really need?

    – And does MOD really need to own 15 golf courses?

    Conclusion

    So as we work towards the next Strategic defence and security review we will do so neither as victims resigned to further budget cuts; nor as fanatics opposed to any reforms at all. But as a large, mature, properly run organisation that is up for the challenge.

    Over the past four and a half years we have shaken up the system, we’ve made big savings, and we’ve delivered new capabilities.

    All this while meeting NATO’s 2% and 20% targets.

    So we’ve proved efficiency is nothing to fear.

    Whatever the challenges we now face we do so from a position of strength with the confidence and the agility to respond.

    Today defence is fighting fit with a balanced budget able to invest in the kit and people that we need to keep Britain safe.

    Unlike the chaotic mess left by the last administration, that is a legacy for everyone in defence to be proud of.

  • Theresa May – 2015 Speech at the International Crime and Policing Conference

    theresamay

    Below is the text of the speech made by Theresa May, the Home Secretary, at the King’s Fund in London on 28 January 2015.

    When I hear people talk about the fall in crime we are seeing in parts of the world, I am reminded of a story told by the former Home Secretary Michael Howard. In 1993, upon entering the Home Office, his civil servants presented him with a graph. That graph showed crime on an upwards trajectory rising year on year. “Home Secretary,” they said to him, “the first thing you must understand is that there is nothing you can do about this. Your job is to manage public expectations in the face of this inevitable and inexorable increase.”

    I am glad to say that Michael Howard did not listen to that advice. Instead he put in place a range of tough measures, and by the time he left office crime had fallen by 10 per cent.

    Thankfully today we know that assessment was deeply flawed. Crime has fallen by 63 per cent since it peaked in 1995, according to the independent Crime Survey for England and Wales. Violent crime has been cut by 66 per cent, and burglaries are down by 67 per cent.

    And this drop in crime hasn’t just happened here. Across the western world, crime and disorder have been declining steadily, with robbery, theft, car crime, violence and murder down in many countries. In most Europe countries, homicide has fallen by 30% or more in the last 15 years. In the US violence has fallen by 71% and property crime by 63% between 1993 and 2013.

    We are becoming more law-abiding, less violent and better at protecting ourselves and our property. As a result, we are also less fearful of crime. Where crime once ranked first among voters’ concerns, it now barely registers in the top ten.

    Of course this picture is complex. In recent years in the UK there has been a sharp increase in the number of sexual offences recorded by the police, including appalling sexual offences against children, as more victims have approached the authorities. There are other offences that tend to be under-reported, such as domestic abuse, modern slavery and female genital mutilation, where ensuring victims have the confidence to come forward is an urgent priority. We also need to recognise that the UK faces new and evolving serious and organised crime threats, including new forms of cyber crime and fraud.

    But today overall crime in this country is at its lowest point since the Crime Survey began in 1981. As Home Secretary, I want to see it fall even further.

    That is why I have called this conference, and why I am so pleased to see you here. We have among us experts from New Zealand, Canada, the US, Europe and South America and from an impressive variety of academic and practitioner disciplines. I hope that over the next two days we will develop our knowledge so that we can work to cut crime even further.

    Police reform

    When I became Home Secretary in 2010 I – like Michael Howard – was also greeted with doom-laden warnings about crime. Then the grave economic crisis we inherited made spending cuts across the entire public sector necessary, including policing. But the Police Federation, the Association of Chief Police Officers, and the Labour Party were united: the frontline service would be ruined and crime would go shooting up. Labour called it “the perfect storm”, the Police Federation predicted “Christmas for criminals”. And like Lord Howard, I also did not pay much attention to that advice. Instead, I initiated a programme of radical police reform and set out to prove that it is possible to deliver more for less.

    I abolished the hopelessly unaccountable institutions and abandoned the centralised approach that existed before. I closed down ineffective national organisations like the National Policing Improvement Agency and the Serious Organised Crime Agency. I stripped away reams and reams of unnecessary bureaucracy, putting an end to national targets and telling the police they had one mission: to cut crime.

    And in doing so I established a framework of institutions and processes that now work properly to ensure accountability, operational integrity and transparency.

    Most importantly, operational policing now lies not with the Home Office but with local chief constables.

    Chief constables are in turn held to account by directly elected police and crime commissioners, who determine the budget and ensure that policing is tailored to the needs of the local area.

    Professional standards, training, and an understanding of what works are determined and maintained by the new College of Policing.

    Her Majesty’s Inspectorate of Constabulary – now independent of the government and the police – holds forces to those standards and shines a light on police performance. A beefed-up Independent Police Complaints Commission investigates if things go wrong, including all serious and sensitive cases.

    And where the issue extends beyond local policing, the National Crime Agency has the power and the mandate to task and coordinate law enforcement assets in response to serious and organised crime.

    In short, there is now a coherent system of police accountability and it is working. The police are able to get on with the job of fighting crime. We have freed up to 4.5 million hours of police time – the equivalent of 2,100 full-time police officers. Not only has the frontline service been protected, but the proportion of frontline officers has gone up – from 89% to 91% today.

    Through direct entry and Police Now, the closed shop of policing is now open to the best and brightest recruits. We have reformed police pay and conditions where many others failed. And we are getting on with the gritty and unglamorous work of sorting out police procurement and police IT.

    And we have achieved all this while bearing down on budgets – central government funding for the police has fallen by 20% in real terms, saving £1.2 billion of taxpayers’ money.

    The need for reform to continue

    Yet for all the achievements of this Parliament, I am struck by a sense of déjà vu. Because in recent weeks, I have heard the same arguments about the dangers of police reform, from the same vested interests – and in some cases the same individuals – as I heard back in 2010. Five years after being proved wrong, the same warnings are being recycled. The debate about crime may have changed, but the electoral cycle – and, with it, the post-election spending review – has not.

    So let me be clear: the need for reform doesn’t stop here. Crime may be down but as long as it exists it is still too high. Finances may be tight but there remain savings to be made. Public confidence in the police is rising, but it is still not high enough.

    If we are to preserve the sustained falls in crime that we have seen in the last two decades, if we are to ensure effective and efficient police forces, and if we are to meet the difficult financial constraints that will be necessary – whoever forms the next government – then reform must continue.

    This should not be so controversial.

    We know that further efficiencies will have to be found, but we also know where to look for them. In procurement, this Government’s reforms to drive the collaborative buying of goods and services is on course to deliver £200 million worth of savings by May. By expanding these shared frameworks and procuring new goods and services in a similar way, much greater savings can be made.

    A number of trailblazing police and crime commissioners have shown that they can deliver better value for money by working with other emergency services – through single control rooms, joint response teams and shared facilities. But not all areas have explored these partnerships and even in the most advanced forces there is still some way to go before organisations are properly integrated.

    And while we have made a start on reforming the inefficient and expensive use of police IT, there are still huge opportunities to drive savings and deliver operational benefits. The new Emergency Services Network which will replace the current Airwave communications system used by the police, will provide a system which is better and smarter while also saving the emergency services around £1bn over the next 15 years.

    In all these areas, there are significant opportunities for savings and benefits. But these are not the only changes we must pursue.

    Since becoming Home Secretary, I have been determined to put right those tough, complex issues that have been so sorely neglected in the past.

    The police response to people with mental health needs is improving, for example, but we must continue our work to ensure that the most vulnerable people in our society – at the moments when they are most in need – are not greeted by police officers, cells and handcuffs, but by medical experts, a bed and proper healthcare. We have reformed the use of stop and search and its use has fallen by a quarter since 2010, but we must continue efforts to make sure stops are intelligence-led and proportionate. And we have set out proposals to further reform pre-charge bail, the police complaints system and police disciplinary procedures to bring greater accountability, transparency and independence to all three.

    At the same time, modern technology offers untold opportunities to save time and money and improve outcomes. Body worn video is already having an impact in forces – for example in domestic abuse cases – but we must explore its use more widely, for example around gathering evidence and interviewing suspects.

    There is more to do with police.uk – which receives over 500,000 visits a month – and the non-emergency 101 police number – which receives over 2.5 million calls each month – to help transform the way the public interact with the police and provide the public with easier ways to contact local police about crime and disorder.

    So today I am pleased to announce a further step to make reporting crime even easier.

    Working with Surrey and Sussex police forces, the Home Office will develop a prototype for people to report non emergency crime online. The growth in the internet has transformed other services – from shopping to banking, and it is right to give victims and witnesses greater choice over how they report issues to the police.

    It also has the potential to substantially reduce costs to the police. Early estimates suggest online reporting could save forces an estimated 180,000 officer hours a year, and around £3.7 million.

    Our understanding of crime

    So it is imperative reform continues so that we can deliver effective and efficient policing. But we must also examine ways to meet that most difficult of challenges, reducing public service demand.

    Crime is down and it continues to fall. Since I became Home Secretary, crime has dropped by more than a fifth, according to the Crime Survey for England and Wales. These are not abstract statistics: in England and Wales that amounts to nearly a million fewer criminal damage incidents and 400, 000 fewer violent crimes a year.

    There has been considerable debate about why this is happening and these are issues you will discuss at length at this conference. I know there are many here who are experts in these fields, and we welcome your contribution.

    Some people used to argue that there had to be one significant factor that explained crime trends – whether it was the economy, inequality, or improvements in car and home security. But the longer the fall in crime has gone on – particularly though the financial crisis in 2008/09 – and the more countries that have experienced it, the harder it is to make that argument. Nor has crime simply moved online, as I know has been suggested. While we are undoubtedly seeing new forms of offending like online fraud and cyber crime, last week’s official statistics clearly indicated that the volumes are outweighed by the very substantial falls in more ‘traditional’ crimes like burglary or vehicle-related theft.

    If we are to encourage crime to fall further and faster, then it is important we understand more about the factors that are making overall crime fall, why it is falling quicker in some places rather than others, and why some crime types buck the downward trend. If we can do that, then we can devise better and more targeted crime prevention policies.

    Last September, I gave a speech to the thinktank Reform. In it I described the role that I see for the Home Office, now that Whitehall no longer believes it runs policing. That role is threefold: to support the National Crime Agency in the fight against organised crime; to ensure truly national systems such as the Police National Computer work effectively; and to develop first rate knowledge on crime trends and the drivers of crime which can be used to inform our response.

    In this country, we believe there are six main drivers of crime: alcohol, drugs, character, opportunity, the effectiveness of the criminal justice system and profit. I want to say a little on each.

    First, we know that there is good evidence linking alcohol and violent crime and disorder, and the recent fall in violent crime may be due in part to reduced alcohol consumption, particularly among young adults. Nonetheless, the cost of alcohol-fuelled violence on individuals, society and the police is unacceptably high. So we have overhauled the Licensing Act 2003 and banned the worst cases of cheap alcohol sales, alongside supporting targeted local action which can yield positive results.

    The second driver is drugs – and perhaps the biggest single factor in the rise and fall of acquisitive crime in this country between the early 1980s and today. As Home Office research has indicated, the explosion in the number of heroin and crack users between 1982 and 1995 accounted for around half of the rise in burglaries, robberies and theft of vehicles over that period. Today, heroin and crack usage is falling, but our understanding must inform work on prevention, treatment, and our operational response.

    The third driver is character. I do not believe there is anything inevitable about criminality, and most people – whatever the circumstances they grow up in – do not go on to commit crime. But there is growing evidence that an individual’s propensity to commit crime – or character – is influenced both positively and negatively by a range of social and environmental influences as they grow up. This has implications for our work on everything from tackling gang crime, to reducing the number of children who are brought up in violent and abusive households.

    The next driver of crime is ‘opportunity’, where there is a strong link to what I have just been saying about character. Designing out ‘opportunity’ has played a significant role in making it harder for criminals to commit crime over the last 20 years. Cars have been harder to break into or drive away, homes have been more secure, and ‘ungoverned spaces’ have been minimised through town planning and architecture. Today, I am pleased that the Home Office is publishing a paper which explores the evidence on ‘opportunity’ as a driver of crime. In future, we will need to apply the lessons from the last twenty years to spot and design out new opportunities to commit crime, particularly those related to new technology.

    Then there is the role of the police and the criminal justice system. It may be stating the obvious to say that the more likely a criminal thinks they are to be caught and punished, the less likely they are to commit a crime. But this has some important implications, both in terms of police practice – such as targeting crime hotspots – and the message an inadequate response sends to criminals – for example if crimes are not recorded, or victims not believed.

    In the UK we have had deeply shocking revelations about child sexual abuse, in which public organisations, the police and other agencies have failed to protect vulnerable children, and bring perpetrators to justice. Each and every single case is a dereliction of duty. Young lives are ruined, and the damage and trauma caused by these crimes is immeasurable. We owe it to all victims of child sexual abuse to ensure that they are listened to and believed, and that we do everything in our power to pursue offenders and prevent other children from becoming victims.

    Finally, the last driver is profit. Wherever money can be made, we know that serious and organised criminals will find ways to exploit systems and people. Until recently, there had been a sharp increase in the number of ‘thefts from the person’, with large numbers of phones being stolen by organised criminal groups targeting concerts and festivals. The phones were then often sent overseas where they could be reactivated and sold. So alongside an operational response, the industry introduced new security systems which mean stolen phones can no longer be reactivated overseas, thereby killing the criminals’ export market. As last week’s crime figures showed, the effect has been a 24% reduction in recorded theft from the person in the year to the end of September last year. So targeting profits is a powerful way of disrupting this kind of crime.

    So why does thinking about drivers of crime matter?

    Thinking about the drivers of crime in this way is important because if we can understand more about them, and the interplay of different factors behind a particular crime problem, we can devise an effective response.

    A good example is metal theft. When I became Home Secretary metal theft was rising sharply causing damage to churches, communities and our railways. Superficially, the high number of thefts appeared to be driven by a sustained rise in the global price of copper and lead. And let’s be honest, there is little the government, let alone the police, can do to influence that.

    But when we dug deeper, there was more than ‘profit’ driving that particular crime rise. We had a large metal infrastructure, including train tracks and power cables, that was difficult to secure. We had a ‘no questions asked’ culture among unscrupulous scrap metal dealers, and a set of criminal sanctions which were rarely used and offered little more than a slap on the wrist. So opportunity and the effectiveness of the criminal justice system were important drivers too.

    So with that understanding, we put in place a range of targeted measures from legislation banning cash payments for scrap metal to increased penalties. As Home Office research published today shows, the result has been a dramatic drop in metal theft, which has fallen by around a third between 12/13 and 13/14.

    Improving our understanding further

    Our knowledge and understanding of crime is improving, but I want policing and crime reduction to have the same relentless focus on evidence as in our medical and legal professions – where knowledge and research are the foundation of professional practice. We must also develop greater understanding of the future crime challenges we face, and the threat from serious and organised crime.

    The College of Policing is leading work to understand best practice in policing methods and develop an evidence base of what works in cutting crime. The College’s role is vital if we are to turn knowledge into action, and ensure that frontline officers can put what we know into practice to help cut crime.

    We are supporting new thinking and challenging forces to think hard about more effective ways of policing through the Police Innovation Fund.

    And at the Home Office I have established a Crime and Policing Knowledge Hub. Its role is to analyse and develop knowledge on crime trends and the drivers of crime.

    But governments and law enforcement don’t have all the answers. We need to harness expertise from a range of different fields. That is why I have convened this conference so that we can bring together the brightest minds on crime and policing and explore changing crime threats and improve our response. I hope that this year’s conference will be the first of many.

    But we must go further.

    That is why today I am pleased to announce a further initiative, the Police Knowledge Fund, as a signal of my ongoing commitment to improving our understanding of crime and how best to respond to it.

    This £10 million fund, funded jointly by £5 million of funding from the Home Office and £5 million from the Higher Education Funding Council for England, secured through the College of Policing, will support research collaborations between police forces and academic institutions to translate research into practice.

    Its mission will be to support the establishment of a recognised body of knowledge, evidence and expertise on crime reduction and policing practice, so that in future policing is based on a thorough understanding of crime and best practice.

    Conclusion

    Police reform is working and crime is falling. When this Government came to office in 2010 there were those who greeted us with dire warnings about reform.

    Our critics said crime would go shooting up. It has not. They said the frontline service would be damaged. It has been protected. And they said the safety of communities would be threatened. And that has not happened.

    As we enter the next Parliament there are those who think crime cannot continue to fall. Our challenge is to better understand crime, and what drives it, so that we never return to the days of crime graphs which show a seemingly inexorable rise upwards. Today crime is down, and I want to see it continue to fall.