Civil List Debate

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Department: HM Treasury
Thursday 30th June 2011

(12 years, 10 months ago)

Commons Chamber
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Ed Balls Portrait Ed Balls
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I was in no way criticising the approach that has been taken. I was simply noting the rather odd situation that we are in: I am able to say some things that, potentially, nobody else fully understands because they have not had the briefing from the Chancellor that I had, but I totally understand the Chancellor’s position.

Paul Flynn Portrait Paul Flynn (Newport West) (Lab)
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As this announcement has been described as “important”, a disappointingly small number of Members are in the Chamber. Will my right hon. Friend tell me when he first heard that this announcement would be made today?

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Paul Flynn Portrait Paul Flynn (Newport West) (Lab)
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The sight of the British Head of State bowing her head in respect at Croke park to those who had been murdered by the British Army was a symbol of profound potency. She also paid her respects to the many thousands of soldiers from the Republic who died in the first world war. She visited the English market in Cork, which a number of us have visited recently, and that has had a practical benefit for the area. I believe that that visit will help to heal the deep wounds between the Republic and ourselves. The Queen has a splendid and unblemished record of service as the Head of State, and I do not want to stray into saying that she does not. She has rightly earned the respect of us all. However, some of the hyperbole this afternoon, which we always have on these occasions, goes a little too far.

Last year, Prince Charles increased the amount of taxpayers’ money he spent by 18% and his personal spending went up by 50%. That was at a time when his 159 staff had their wages frozen. We must look carefully at the royal finances. I found it an Alice-in-Wonderland concept for the hon. Member for Gainsborough (Mr Leigh) to say that one of the great achievements of the Public Accounts Committee was to save a bit of money on transport that he described as fantastically wasteful. I think that we must apply the same financial discipline to the royal family that we apply to the poorest in society.

There should be a distinction, as was suggested by my hon. Friend the Member for North Durham (Mr Jones), between the way we treat the monarch, because of her role, and other members of the royal family. Perhaps we could be a bit more critical in the way in which we work out the benefit of visits from minor members of the royal family to charities and set that alongside the security and military costs that are incurred. That does not happen now.

It is not true to say that support for the monarchy as an institution is universal in this country. I come from a constituency where the last insurrection that tried to set up a republic took place in 1839. The 20 people who died in that insurrection are honoured every year. There are people in this country who are happy to describe themselves as republicans, although the figure varies. It was about 45% at the time of the death of Princess Diana and it goes down to about 25%. Those people have a credible view that should be heard.

We had little prior knowledge of this debate. I had no idea that it was happening today. There seems to be an acceptance of this matter without a knowledge of the fine details. I urge that we find a simpler solution, because the one we have seems to be very complex. There is income from various sources, some of which are controlled and some not. Perhaps we could apply a system similar to the one that I urged hon. Members to use for ourselves some years ago in supporting a motion tabled by Chris Mullin, which was that the salaries of hon. Members should be linked to changes in the basic state pension, so that if there was an increase in the basic state pension, our salaries would increase, and if it was frozen, our salaries would be frozen. I believe that a simple mechanism of that type would be acceptable to the country as a whole, and it would be beneficial to the House because it would give us a greater interest in the level of the basic state pension. It would be interesting to put a cap on future payments for the civil list, and if it was linked to a mechanism like that, whether based on the retail prices index or the consumer prices index, it would be possible to understand it. It is essential that the royal family should face the same financial discipline as every other family in the land.

Of course the royal family have done many beneficial things recently, particularly raising money from the royal palaces. However, it is worth remembering that the most profitable royal palace in Europe is Versailles, and they have had rather a different attitude to royalty in France from the one that we have had here. However, that is not essential.

The royal family are in the position that we cannot attack them or say anything critical. That is the rule in the House, which we accepted some seven centuries ago. We know the recent history, with the behaviour of certain members of the royal family having been widely criticised in the press, but it is impossible for us to make any derogatory remarks about them here. I believe that we should remove that gag, not because we wish to criticise the Head of State but so that when minor members of the royal family are extravagant or outrage the public by their standards of behaviour, we in the House have the freedom to be critical of them.

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Jacob Rees-Mogg Portrait Jacob Rees-Mogg (North East Somerset) (Con)
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I know there is a great wish to debate Epping forest, a matter of enormous interest, so I will try not to be unduly long-winded.

So far in the debate, we have missed a crucial point. We have just focused on the cost of the monarchy, but our sovereign represents the greatest institution in our land; it is that bit that makes us British, and we do not want a mean monarchy. We want a proper and well-funded monarchy, not a bicycling monarchy, even if riding the Mayor of London’s bicycles.

The subject of this debate encapsulates the connection the monarchy gives us to our history. What did the Commons spend its time debating in the 16th century? It spent its time debating that the King should live of his own: that the King—Henry VIII for much of that era—should be able to use his own resources to provide for all he needed to spend. This debate returns us to that same principle.

The Crown Estate provides an extraordinary link with our history. We could probably find some acre of the Crown Estate somewhere—probably in Somerset—that was the property of Alfred the Great, but we would certainly find that there was property in the Crown Estate that came with William the Conqueror and from the dissolution of the monasteries. St James’s palace started as a leper colony founded by Queen Margaret in, I think, 1118. It was then part of the endowment of Eton college, which was, very tactfully, given back to the Crown by Eton when Henry VIII said, “If you don’t give it back, I’m going to dissolve you.” [Interruption.] That was a missed opportunity, I think some on the Labour Benches are saying. The Crown Estate is an extraordinary link with our history, which is what makes us the country—the United Kingdom—that we are. Some attack that and say, “We want a good value monarchy.” That makes Her Majesty sound as though she is something to be bought off the top shelf at Tesco, and it really cannot be how we wish to approach our constitution. The Crown is an essential element of that constitution; everything of importance that happens is done in the name of the Crown.

The hon. Member for Newport West (Paul Flynn) said that he wanted the royal family to be treated as any other family but, as my hon. Friend the Member for Northampton North (Michael Ellis) pointed out, if they were any other family they would not be paying such a high tax rate. Given the 15% provision, Her Majesty will be expected to pay an 85% tax rate, which is more than the 50% tax rate that many of us hope will go over the course of this Parliament.

Paul Flynn Portrait Paul Flynn
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Over the years we were kept in ignorance of the royal tax rates and it was only as a result of a campaign in this House about 12 years ago that we were given any information at all about this. I would welcome it if the hon. Gentleman is asking for full transparency on the royal taxes, but I am not sure that that is part of the suggestion before us today.

Jacob Rees-Mogg Portrait Jacob Rees-Mogg
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I clearly have not asked for full transparency on the royal tax affairs. Indeed, I would argue for the precise opposite, because I do not think it is particularly sensible to be investigating in close detail how the royal family spend their money. I recall a line about motes and beams; we have had quite a problem with our own expenditure in this House and I am not sure that we have got things entirely right. Before we start criticising the monarchy and looking over every biscuit that the Queen buys, we should make sure that we have our own house in order.