Debate on the Address

Debate between John Redwood and Lord Jackson of Peterborough

Wednesday 4th June 2014 Commons Chamber

[Mr Redwood]

I am glad to see the Scottish nationalists agreeing.

I come on to talk about the United Kingdom and its relationship with the European Union. We have today again witnessed a very important ceremony in this House. That ceremony is designed to remind us all of the battles and struggles of our forebears to ensure that this House of Commons had the power to limit the Crown—had the power to make the authority of government in this country accountable to this House of Commons—and a very moving and important ceremony it is. But we have a new struggle on our hands, equally important though not one, fortunately, for which we will need muskets and musket balls. We will need words, actions and independent thinking.

Our struggle is that this once great and sovereign House of Commons now is not sovereign or great in so many fields because the European Union has powers to instruct, overrule and command. There is a particular case that I would like the Government to consider in this next year in the legislative programme. The case is that of the human rights convention and the list of human rights therein. It was a Labour Government, when signing us up to the treaty of Lisbon, who expressly said in their motion on the treaty and in the Act of Parliament that they put through on the back of it that we were not going to consolidate all of the convention on human rights—that this House and this country would make up its own mind on human rights. That was reflected in the legislation that we passed—an act of sovereign legislative activity to say that we did not want it all dictated from the European Union.

What has now happened under a European Court judgment is that the European convention on human rights is being absorbed into the corpus of European law and will become an instruction on this House, against the wishes of Labour and against the wishes of the rest of us in the House at the time. I think the House should now move an amendment to the European Communities Act 1972 expressly ruling out that grab of power by the European Court of Justice on this issue, reflecting the words of the treaty we signed and reflecting the words of the legislation that this House passed. Unless this House is prepared to do this at some point on some important issue, this House is in no sense sovereign any more. We can claim to be sovereign only because all the powers of the European Union today are technically the result of our passage of the 1972 Act, but if we are never going to amend or revisit that Act, those powers have gone and we are completely under treaty and ECJ law.

Another area that we may need to look at is the promise by Governments of all persuasions that matters relating to taxation and social security would remain national issues, because they involve the money of our taxpayers and the money going to people in our country who most need help. Surely this Parliament should control our taxation, and our expenditure of substantial sums of it on benefits.

[Mr Stewart Jackson]

My right hon. Friend is making a characteristically powerful speech. Is not another mark of a sovereign nation that it controls the integrity of its own borders? Is it not high time that, even if we fall foul of the European Court of Justice, we look again at the ramifications of the free movement directive and possible changes to it? Should we not employ some of the changes that Spain, for instance, has made, to protect the integrity of our borders within the European Union?

[Mr Redwood]

I agree, although I do not think the legal case is quite so clear on that matter, which was why I concentrated on one on which were given assurances that a power had not been transferred. I believe the previous Government transferred a lot of power over borders, so it might be more appropriate to consider the matter by way of renegotiation. However, if my hon. Friend has particular examples of the ECJ or the Brussels Commission exceeding the powers that were granted to it, exactly the same argument will apply as with the human rights convention. We need at some point to make changes if we cannot effect them by negotiation and agreement with our partners. When negotiating, it is always a good idea to have a plan B just in case they do not see it our way. I always find that that concentrates the mind somewhat.

The Gracious Speech will reinforce the recovery, and that is what matters most to many of our constituents, who wish to have better jobs, better living standards and access to better housing. We are the inheritors of mighty constitutional turmoil, and we can no longer put off the business of England. Whatever result comes from the Scottish referendum, this House must engage earnestly with the business of England as surely as it has, on and off, with the business of Scotland and that of Wales and Northern Ireland in recent years. Above all, because we need to be in control of our own destiny and represent our people in ways that our forebears would respect, this House needs again to say that there are limits to European Union power, which will be prescribed here and dictated from this House. We can then look the British people in the eye again and say, “Yes, we will redress your grievances. We still have the power to do so, and we have the political will to act.”

Finance (No. 2) Bill

Debate between John Redwood and Lord Jackson of Peterborough

Thursday 18th April 2013 Commons Chamber

[Mr Jackson]

The hon. Gentleman might say that, but it is incumbent on Her Majesty’s loyal Opposition to specify the amounts and where the cuts would be made in other ways. It is not acceptable to dodge the issue, and that goes even for the simple question of what is “strong growth”. At what stage would that be measured? How would we quantify “strong growth”? It is rather mealy-mouthed.

Let us look at the wider context. Interest rates are historically low. Perhaps the hon. Gentleman is not old enough—or maybe he is—to know that in 1975 they were 27%, under a Labour Government. Inflation was substantially higher through most of the ’70s and ’80s. We now have big cash balances, lower interest rates, relatively low inflation, lots of money in the economy and quantitative easing, which has been in place for many years. Even if we accept the traditional Keynesian view—that just pumping money into the economy will deliver growth, jobs and prosperity, which seemed to inform the argument that the hon. Member for Kilmarnock and Loudoun made—we should accept that it has not worked so far through quantitative easing, with the balances that are available. The issue is business confidence.

In the wider context—wider even than that—between 2000 and 2010, public expenditure rose from roughly £450 billion to more than £700 billion. That is the context in which we should look at these fiscal changes. It is not as if we have starved the economy of money in the public sector. The difficulty for the hon. Member for Ynys Môn in arguing in defence of the Government at that time is that the economy was so unbalanced. It was focused disproportionately on the housing market, public expenditure and financial services. Part of our challenge as a Government is to try to rebalance the economy, so that it can make people prosperous and create jobs across wider economic activities, which is happening organically on its own.

Those on the Opposition Front Bench also fail to take into account the other, bigger policies that the Government have embarked on. I will not pretend that things such as the national insurance holidays or the regional growth fund have been an enormous success. I serve on the Public Accounts Committee and we have been critical of things that the Government have pursued in some areas. Nevertheless—the hon. Gentleman alluded to this—the Government are looking at tariffs for utility bills, the beer duty escalator and the fuel duty escalator. We are looking at substantial changes that will have a fiscal impact on welfare, through the universal credit and so on making work pay, rather than paying for idleness and allowing people’s talents to be wasted. We are also putting money into the mortgage market and assisting new house building. Some 42,000 of my constituents had a tax cut last week as a result of the massive fiscal changes that this Government have made, with 2,000 of my constituents paying no tax at all and 24 million people affected. It seems rather unfair not to take that on board.

I also alluded earlier to the progressive nature of our tax changes. Whatever we say about them, it cannot be argued that we have not looked at the top 5% or 10% of income earners in this country to ensure that they are paying a significantly higher share than others. They are the people who will specifically be more worse off than anyone else, whether the hon. Gentleman likes it or not.

[Mr Redwood]

It is unfair to say that VAT is a very regressive tax. If it were applied across everything, it would be, but because it does not apply to food and some other items that figure much more highly in low-income budgets, it is not nearly as regressive as has been suggested.

[Mr Jackson]

Exactly. We could argue at length about the progressiveness of various taxes—no doubt others would want to—but my right hon. Friend makes an astute point.

The final example is council tax. That depends on the local authority, but in general, most councils have frozen council tax. Therefore, the suite or portfolio of the Government’s fiscal changes that have helped working people is quite significant.

Let me say in finishing that we expect more from an Opposition two and a half years into a Parliament. We expect them to come up with policies that are credible. We expect them to move on from policies that just tick the box of opposition. No doubt the hon. Member for Kilmarnock and Loudoun, who is well connected in the Labour party, will have read the comments of Tony Blair, a three-time election winner, in the 100th anniversary edition of the New Statesman. He cautions the Labour party not to fall back into the comfort zone, not to be a repository of anger, but to be an outward-looking, forward-looking progressive party. I am sure that the Labour Whip on the Front Bench, the hon. Member for Sedgefield (Phil Wilson), would agree with his predecessor and say that that is sage and intelligent advice. It is so because we expect proper, costed policies. What we have had today is an unfunded tax cut that does not help the people I believe the Labour party genuinely wants to assist to have a better life. I would caution the hon. Member for Kilmarnock and Loudoun to come back with more coherent, more intelligent and more credible policies. That is why I will not support new clause 2.