Anna Firth
Main Page: Anna Firth (Conservative - Southend West)Department Debates - View all Anna Firth's debates with the Cabinet Office
(8 months, 4 weeks ago)
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Emily Thornberry
My hon. Friend is spot on. For those on the Government Benches muttering about claiming, it does not really matter whether the money was claimed, or if it was given to someone and not given back—the point is that the money was still pocketed by the right hon. Member for Great Yarmouth, and no one was expecting the rules to be used in that way. That is the point of this debate.
The payments were extended to other Ministers in 1991 based on a recommendation by the then Top Salaries Review Board, which commanded broad cross-party support. The only change from the previous rules was to remove the two-year qualifying limit, but it is worth noting that in every debate that preceded the 1991 legislation, MPs remained clear that these payments were intended for the benefit of long-serving Ministers, who were having to make what Geoffrey Howe called
“an abrupt and significant financial adjustment…on relinquishing ministerial office”.—[Official Report, 17 January 1990; Vol. 165, c. 311.]
Anna Firth (Southend West) (Con)
Will the right hon. Lady accept that when our party came to power in 2010, we cut ministerial pay, and we have kept it frozen ever since? In the unlikely event of her side getting into power, would she commit to maintaining that freeze?
Emily Thornberry
If the hon. Lady has a moment to look at the motion before us today, and to consider it in the spirit of fairness and how public money should be spent, I hope that she would agree that the current system has been abused over the past few years by her colleagues in the Chamber and outside it. That is simply not the sort of thing that the public wants. They would be appalled if they knew what was going on with the severance payments we are talking about today.
Anna Firth (Southend West) (Con)
If anyone had any doubt that the Opposition are not fit to govern this country, that doubt must have been dispelled this afternoon. There were many things they could have chosen to debate. It is Children’s Mental Health Week. There are all sorts of incredibly important things going on today about Safer Internet Day. It is the start of National Apprenticeship Week. It was World Cancer Day two days ago. We could have debated the economy or the middle east. As a Parliamentary Private Secretary, I went to a brilliant debate about the Homes for Ukraine scheme today. But no, they have used their second Opposition day debate to talk about party politics. That is all this debate is about, and it is an appalling waste of taxpayers’ money that we are debating this subject today.
The Opposition know jolly well, as the right hon. Member for Islington South and Finsbury (Emily Thornberry) said, that ministerial severance pay is established in legislation passed by Parliament in 1991 and has been used by successive Administrations over decades. It is a statutory entitlement implemented by Governments of all stripes. Payments were made and accepted by outgoing Labour Ministers throughout the Blair and Brown years, as well as by Liberal Democrat Ministers in the coalition Government.
Jerome Mayhew
My hon. Friend refers to the initial legislation in 1991, but that was followed up, as she is no doubt aware, by the Scotland Act 1998, which was brought in by Labour and repeats the same approach for Scotland. Does she agree that it is the height of hypocrisy from the Opposition to claim outrage now, when they brought in similar legislation themselves?
Anna Firth
I completely agree with my hon. Friend’s brilliant point, which brings me naturally to my next point. The last Labour Government had the opportunity to amend the 1991 legislation in any one of the 13 years they were in office. Instead, they chose to do absolutely nothing. Even more outrageously, following Labour’s defeat in the 2010 election, when the right hon. Member for Birmingham, Hodge Hill (Liam Byrne) left that infamous note saying, “Dear Chief Secretary, I’m sorry, I’m afraid to tell you there is no money left.”—
Anna Firth
That is an exact quote: “There is no money left.” I do not mind saying it again, because that is the mess that Labour left us with. The point here is that having said that there is no money left, what did outgoing Labour Ministers do? They pocketed £1 million in that year in severance pay. In today’s money, that would be £1.6 million—truly shocking. That was irresponsible then, and their actions are 100% hypocritical today.
In stark contrast, when we entered office, what was our approach when we saw the mess that Labour had left us in? We cut our ministerial salaries and have kept them frozen ever since.
Jerome Mayhew
My hon. Friend makes an excellent point about Labour, but we have heard from the Scottish National party that somehow it is better north of the border. Does she agree that that is surprising given that the Scottish Daily Express said:
“SNP spin doctors received more than £200k in ‘golden goodbyes’ in 2023 as Humza Yousaf rung tiny changes.”
What does that say about the SNP?
Anna Firth
I totally agree with my hon. Friend. That is absolutely appalling. We also know that shamed SNP MSP, Derek Mackay, who has left office, claimed £155,000 in expenses, including, as I understand it, severance pay. The SNP approach is incredibly hypocritical.
While we were sorting out Labour’s mess, cutting our own pay and keeping it frozen, every single Labour leadership candidate in 2010 refused to hand back their taxpayer-funded severance pay, including the right hon. Member for Doncaster North (Edward Miliband) and the Mayor of Greater Manchester, both of whom were entitled to £20,000, and they still hold elected office today.
When we questioned those severance payments, given the mess that Labour had left us in, a Labour party spokesman responded by saying that it was a pathetic attempt to create a smokescreen around serious economic issues—[Laughter.] Yes. I would be grateful if those on the Labour Front-Bench team can confirm to the House today that this motion is a pathetic and hypocritical attempt to create a smokescreen around their total lack of a plan for Britain. There is no plan for the economy, no plan to tackle welfare, and no plan to deal with immigration. In fact, we know that Labour would take us right back to square one.
As usual, while the Opposition are sniping from the sidelines and making these cheap political points, we are actually getting on with the job of serious government. In the past 14 years, the Conservative party has been focusing on delivering for the people of Britain. Let me remind Labour Members what that delivery looks like: better state schools than ever before; more students securing top grades in maths, physics and chemistry—
Anna Firth
I am not far from finished, so I will carry on.
There are more students from state schools at our best universities. School performances are skyrocketing up the PISA tables, and we now have the best readers in the western world. We also have record employment: 4 million more people in a job than there were in 2010—that is over 800 jobs every day.
Anna Firth
No, I will not. I am about to finish my remarks.
We have a national living wage, a welfare system that is simpler, fairer and better targeted, more hours of free childcare, including overseeing the largest single expansion of childcare in English history, and the fastest decarbonisation of any major economy, leading the way in renewables, which will be key to our future. I could go on and on. This is a record of which we are extremely proud. We have stuck to our plan: we have halved inflation; we have cut taxes for 27 million working people, worth £450, starting last week for an average worker; and of course we continue to support the most vulnerable in society, keeping the triple lock and doubling the personal allowance.
I will conclude by saying that any review of the long-standing ministerial arrangements for severance pay should be done properly, with due process. It should not be done in this desperate and political fashion. The Conservatives are delivering for the people of Britain. Labour would just take us straight back to square one.
Anna Firth
My hon. Friend is making a brilliant speech. [Interruption.] He absolutely is. Would he like to comment on Labour Members’ conversion on the road to Damascus, with their sudden desire to tackle something they had 13 long years to do? Not only did they not do it, but they went on to add to the system.
Jerome Mayhew
I am grateful for that intervention. It was mentioned earlier—once, if not twice—that in 2010 the Labour party leadership candidates were invited to return their severance payments, having refused to do so. The suggestion that they should was described, on behalf of the Labour party, as “pathetic”.
This motion is half-baked. We have seen over the course of a couple of hours a number of interesting suggestions that could apply to potential legislation in this event. It is clearly an improper use of the disapplication of Standing Order No. 14. Look at the Labour Benches: if it such an emergency, why are those Benches so bare? Even Labour Members of Parliament do not think that this is urgent. I have no hesitation in voting against this motion and I invite everyone else to do the same.
Dame Nia Griffith (Llanelli) (Lab)
Thank you very much, Mr Deputy Speaker, for the opportunity to wind up this debate. My right hon. Friend the Member for Islington South and Finsbury (Emily Thornberry) and other Opposition Members have laid out very clearly why we need reform and why rules that never envisioned the churn and chaos that we have seen over the past 18 months need to be tightened up.
We have heard from numerous Opposition Members and one or two Government Members as well. The SNP spokesperson, the hon. Member for Aberdeen North (Kirsty Blackman), emphasised just how out of touch this Government are, reminding us of the stark choices that many of our constituents have to make between heating and eating. My hon. Friend the Member for Sefton Central (Bill Esterson) described the case of the three assistant Whips getting two and a half times more in severance pay than they did in salary, taking away some £4,479 each, whereas under our reforms they would only be entitled to £454. He also made the point very clearly that under the leadership of a Labour Government we had 2% growth, whereas, sadly, under this Government we have seen only 1%, which has a huge knock-on effect for all our constituents.
My hon. Friend the Member for Hornsey and Wood Green (Catherine West) also made reference to the hardship faced by her constituents, who are being hammered by record peacetime tax burdens, and called for some contrition from Tory Ministers. My hon. Friend the Member for Ellesmere Port and Neston (Justin Madders) pointed out the anomaly that, under the current system, for just one day in the post of Secretary of State, an MP can receive some £16,000 in severance pay. That is why reform is really needed. He contrasted that with his expert knowledge of what ordinary people can expect in terms of statutory redundancy pay, and the horrible shadow of zero-hours contracts, where people often worry whether they will have enough hours to make ends meet.
My hon. Friend the Member for Stockton North (Alex Cunningham) pointed out that MPs such as Joe Ashton were even questioning back in 1991 whether a full 13 weeks’ severance should be payable for just two years. He would certainly be astounded about MPs taking ministerial severance pay after just a few weeks.
My hon. Friend the Member for Putney (Fleur Anderson) pointed out how nothing got done in the summer of 2022 about matters of immense importance to her constituents, such as cladding. As she reminded us, Labour has full plans, if in government, for a proper ethics and integrity commission to clean up politics.
My hon. Friend the Member for Hammersmith (Andy Slaughter) made a strong case for reform, illustrating it with the case of the right hon. Member for Chelsea and Fulham (Greg Hands). The hon. Member for Edinburgh West (Christine Jardine) reminded us that there is genuinely a valid case for proper reform of ministerial severance pay, especially with the rapid turnover in ministerial posts, as constituents are paying for the way in which the Tories have trashed the economy.
Now, as a former teacher and examiner, I must say to those Conservative Members who spoke that not adhering to the title of the question is usually rewarded with nought out of 10. I might perhaps give the hon. Member for Southend West (Anna Firth) one out of 10, and the right hon. and learned Member for Northampton North (Sir Michael Ellis) and the hon. Member for Broadland (Jerome Mayhew) maybe a two or a three. As for the Minister without Portfolio, the right hon. Member for Tatton (Esther McVey), I think that my hon. Friend the Member for Hammersmith has made it clear what we think about that particular speech. I hope that in his closing remarks the Parliamentary Secretary at the Cabinet Office, the hon. Member for Brentwood and Ongar (Alex Burghart)—my opposite number—will address the content of our reforms and not just deliver a tirade against the Labour party.
Anna Firth
I would be very interested to know what score she would give to each of the four Labour leadership candidates who did not give back a single penny of their severance pay after losing the general elections, and after leaving this country with no money whatsoever in 2010?
Dame Nia Griffith
It might surprise the hon. Lady, but I am going to stick to the topic of this debate, which is severance pay.
Like my right hon. Friend the Member for Islington South and Finsbury, I pay tribute to the hon. Members for Macclesfield (David Rutley) and for Hexham (Guy Opperman), and to the right hon. Member for North East Cambridgeshire (Steve Barclay), who I understand gave back some ministerial severance pay upon taking up new ministerial posts, but it is a great pity that no other Members recognised how totally inappropriate it was to take 13 weeks’ severance pay for a post that they had held for a much shorter time than that, or to keep the full 13 weeks’ pay when they were reappointed in a shorter time than that. Today, they have the opportunity to vote to reform the system that their party has brought into disrepute.
Those in government have a duty to get value for money and to respect the hard-earned taxpayers’ money with which they are entrusted. Let us not forget the financial turmoil caused by the then Prime Minister, the right hon. Member for South West Norfolk (Elizabeth Truss), when she and her team pushed through the Budget in September 2022, ignoring expert advice and leaving people with hundreds of extra pounds to pay on their mortgages—and not just for a couple of months, but for years to come. From this Conservative Government, we have had not just higher mortgages but higher rents, rampant inflation, a real cost of living crisis causing people up and down the country to struggle to make ends meet, and, of course, hollowed-out public services that are scarcely able to meet demand.
When the ministerial severance payments scheme was set up back in 1991, no one would have imagined the absolute pantomime that we have seen over the past couple of years, with nearly 100 Ministers leaving office and taking with them some £993,000—nearly £1 million— of taxpayers’ hard-earned money in ministerial severance pay. Back in 1991, the expectation would have been that Ministers would be in post for a number of years, and that those leaving under the age of 65 would receive a quarter of their final annual salary—13 weeks’ pay—as severance pay.
However, let us fast-forward to the summer of 2022, when MPs were hastily appointed to fill gaps after the frenzied mass resignations from the Johnson Government, supporters of the right hon. Member for South West Norfolk were brought in to serve during her time at No. 10, and supporters of the current Prime Minister, who resigned from the ministerial jobs to put pressure on his predecessors, returned only a few weeks later when he became Prime Minister. We are not saying that the rules were broken, except in the cases of the handful of over-65s who were not entitled to severance pay. Under the existing rules, the rest of those Tory Ministers were legally entitled to three months of severance pay at their final salary level, no matter how long they had been in post, no matter how they came to lose their post and, in most cases, no matter how quickly they returned to the Front Bench afterwards. Those are the glaring loopholes that Labour’s proposed reforms seek to close.