Oral Answers to Questions

Debate between Lord Hammond of Runnymede and James Morris

Tuesday 11th September 2018 Commons Chamber

[The Chancellor of the Exchequer (Mr Philip Hammond)]

Pubs are a vital part of our local communities and the Government are committed to supporting them, which is why I froze all alcohol duties in the 2017 Budget. That freeze, and cuts in alcohol taxes since 2013, mean that a typical pint of beer is 12p cheaper than it would otherwise have been.

Pubs are also benefiting from recent wider reforms of business rates that will be worth £10 billion by 2023, including the doubling of rural rate relief to 100%, the switch from retail prices to consumer prices indexing, reforms in small business rates relief that have taken 600 small businesses out of rates altogether, and the introduction and then the extension of the £1,000 business rates discount for pubs.

[James Morris]

Will the Chancellor join me in congratulating the Friends of Haden Cross, a pub in my constituency? Will he, in particular, join me in congratulating Tim Haskey and Jim Mumford, who rescued the pub when it was on the point of closure, and who, working with new management, have seen a 500% increase in takings since November? Does he agree that the Government should continue to provide good fiscal support for pubs, given their importance to our local communities?

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and James Morris

Tuesday 17th January 2017 Commons Chamber

[Mr Hammond]

I draw a distinction between providing the House with information and commenting on that information—I would not dream of doing the latter. The other thing I would not dream of commenting on is any operations that No. 10 might undertake, which are well beyond my pay grade.

[James Morris (Halesowen and Rowley Regis) (Con)]

The depreciation of the pound during the past few months has been of significant benefit to west midlands exporters, particularly those exporting outside the European Union. Does the Chancellor agree that whatever arrangements we come to for access to the single market after we leave the European Union, they must not constrain west midlands exporters from growing their trade outside the European Union?

[Mr Hammond]

On the contrary, the arrangements must support west midlands exporters in that endeavour. We still have a very large current account external deficit, and we need to bring our trade into better balance. One of our objectives in concluding the exit arrangements from the European Union will be to support that.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and James Morris

Tuesday 29th November 2016 Commons Chamber

[Mr Hammond]

No, these are not the occasions when we commit to additional funding. We have a funding settlement in place and substantial increases in social care funding will become available by the end of the Parliament. But as I have said, we recognise that some authorities are facing some challenges on the profiling of that funding, and my right hon. Friends the Health Secretary and Communities Secretary are discussing that issue with local authority leaders.

[James Morris (Halesowen and Rowley Regis) (Con)]

Does the Chancellor agree that one way to improve productivity in the west midlands economy is to agree a more ambitious second devolution settlement, building on the success of the devolved settlement agreed with the West Midlands Combined Authority?

[Mr Hammond]

I agree with my hon. Friend. As I said on Wednesday, the Government continue to discuss with west midlands authorities the possibilities for further devolution in the west midlands. The other way to get the west midlands economy motoring is to elect a mayor with genuine business experience, like Andy Street.

Iran (Nuclear Talks)

Debate between Lord Hammond of Runnymede and James Morris

Tuesday 25th November 2014 Commons Chamber

[Mr Hammond]

I assure the right hon. Gentleman that we are pursuing the issue actively with the Iranians, but we are clear that we do not want to reopen an embassy on a half-baked basis. If we are to go back in and reopen our embassy, we have to be able to set up the communications and IT systems that we need, and we must be able to import into Iran the equipment that we need to do that. We continue to discuss with the Iranians the arrangements that we might be able to agree with them to enable us to do that, but we have not succeeded in reaching an agreement.

[James Morris (Halesowen and Rowley Regis) (Con)]

One of the reasons why the Iranians came to the negotiating table in the first place was the tough international sanctions regime. In some sense they have already received a concession through the interim agreement. Does the Foreign Secretary agree that we need to be cautious as these negotiations proceed, to make sure that we do not create a perverse incentive for the Iranians to continue to extend these negotiations as they begin to chip away at the sanctions regime?

[Mr Hammond]

It is important that I reiterate that the Iranians are not chipping away at the sanctions regime. Some specific reliefs from sanctions have been provided, but the sanctions that deal with proliferation issues remain in place, so the Iranians cannot get access to equipment that would help them in a nuclear programme, the vast majority of their financial assets remain blocked, and in exchange for the limited relaxation that has been given they have had to enter into a series of detailed obligations that involve reducing the usable stockpile of enriched uranium and diverting new enriched uranium as it is produced into uses that could not be converted to military use at a later date. I consider that to be a sustainable situation for both sides while we continue to negotiate.

Afghanistan

Debate between Lord Hammond of Runnymede and James Morris

Monday 10th February 2014 Commons Chamber

[Mr Hammond]

I think our allies are aware of the importance of at least exploring the possibility of some kind of negotiated settlement with the Pakistan Taliban in North Waziristan. I observe that there appears to be a space being allowed for these negotiations to progress, but that space will not remain open for ever, and I hope the parties will do everything in their power to reach a conclusion rapidly.

[James Morris (Halesowen and Rowley Regis) (Con)]

I welcome the statement. The Secretary of State was right to refer to the importance of the forthcoming presidential election in Afghanistan, and the importance of the Afghan security forces’ taking responsibility for the security arrangements. Can he say a little more about the £20 million of UK money that he mentioned, and about what it will be used for as part of that security operation?

[Mr Hammond]

It is not directly designed to support the security operation; it is designed to support the good administration of the elections. We have also allocated funds to increasing the participation of female candidates, and providing the training and capacity building that will enable more of them to take part in the election.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and James Morris

Monday 2nd September 2013 Commons Chamber

[Mr Hammond]

My hon. Friend is absolutely right. The Trident alternatives review makes clear that that is just one of the many drawbacks of a cruise-based system. The other primary drawbacks are the risk, the time scale for development, the likely cost, the lack of range, and the vulnerability of the weapons system.

[James Morris]

Will the Secretary of State confirm that, when maintenance is taken into account, the cost differential between four boats and three boats is minimal, and that we should press ahead with a full replacement for Trident because it is in our national interest to do so?

[Mr Hammond]

My hon. Friend has conflated two different questions. The Trident alternatives review states categorically that Trident provides the best value and the best capability for the United Kingdom. As for the separate question of how many boats are needed, the Government are determined to maintain continuous-at-sea deterrence, and the best advice at present is that that will require four boats. The cost differential between three and four boats is about £1.7 billion in net present value terms, or about £50 million to £60 million a year over the life of the project.

Better Defence Acquisition

Debate between Lord Hammond of Runnymede and James Morris

Monday 10th June 2013 Commons Chamber

[Mr Hammond]

That depends on what we are buying. Clearly, there are things that we can buy off the shelf or from competitive international providers. We recently ordered the new fleet of MARS—military afloat reach and sustainability—refuelling tankers from a South Korean shipyard. That decision did not go down well with everybody, but it was sensible procurement. At the same time, we have to maintain important capabilities that are essential to our national sovereignty here in the UK. In those cases, we have to support the indigenous industry. One purpose of the changes is to make transparent the costs that are driven into a project by the specification of bespoke requirements and to force the customers to recognise those costs.

[James Morris (Halesowen and Rowley Regis) (Con)]

I welcome the statement, but will the Secretary of State say more about the timescale over which he expects the reforms to deliver tangible savings to the taxpayer?

[Mr Hammond]

As I said to the shadow Secretary of State, if we went down this route, we would expect to award a contract next year and for it to be effective by the last quarter of 2014. We would then expect there to be a two-stage process towards the full GoCo-isation—if I may use that term—of DE&S. We would expect savings and efficiencies to be generated from the very beginning, and from the second year of operation we would expect there to be cashable benefits.

Army Basing Plan

Debate between Lord Hammond of Runnymede and James Morris

Tuesday 5th March 2013 Commons Chamber

[Mr Hammond]

Let me deal with the last point first. I am clear that the accommodation we build and the technical facilities we construct must be of a high quality and fit for purpose. I do not, however, intend this £1.8 billion to form a cornucopia for architects.

On the question of Germany, my hon. Friend is absolutely right. We need to plan carefully how we end the relationship with the many German towns that have hosted the British Army. The Army in Germany is very much on the front foot on this. We are aware of the significant impact, particularly in the Bergen-Hohne area, which, by German standards, is relatively less well off. We are looking, where appropriate, at what can be left behind as a physical memorial to the British Army presence in Germany. A series of events will be organised with local communities, and Ministers and senior military personnel will expect to attend them and provide a fitting tribute to the support the German people have given us.

[James Morris (Halesowen and Rowley Regis) (Con)]

I welcome the Secretary of State’s statement. Will he say a little more about the training implications for British forces coming from Germany, with particular regard to his reference to potentially retaining training facilities in Germany? What sort of time scale does he have in mind for the establishment of training facilities?

Future Reserves 2020

Debate between Lord Hammond of Runnymede and James Morris

Thursday 8th November 2012 Commons Chamber

[Mr Hammond]

From all the discussions I have been involved in, I can assure my hon. Friend—who I know has deployed as a reservist in Afghanistan—that the traffic is the other way. If anything, the Army is planning to invest rather more in the reserves than the announced budget suggests.

[James Morris (Halesowen and Rowley Regis) (Con)]

Does the Secretary of State agree that one of the opportunities arising from his plans is to bring into the reserves people who have specific skills in cyber and advanced telecommunications, which are importantly placed in the civilian population? We need to get them into the reserve forces.

[Mr Hammond]

Yes, my hon. Friend makes a good point. Certain skills needed in modern warfare are found in the civilian sector, with cyber and advanced IT skills being obvious examples. How we use reservists who have those skills does not necessarily require them to undertake the same type or level of training as, for example, an infantry reservist; in practice, their daily civilian job is giving them the on-the-job training they need. We will seek to be flexible in how we use and train reservists who have specialist skills.

Army 2020

Debate between Lord Hammond of Runnymede and James Morris

Thursday 5th July 2012 Commons Chamber

[Mr Hammond]

The seven brigades in the adaptable force will continue to have a regional function and will deliver that connection with civil society that is so important to our armed forces. If my hon. Friend has not yet seen my written ministerial statement, I remind him that a new Royal Auxiliary Air Force squadron will be stood up—probably in St Athan in his constituency.

[James Morris (Halesowen and Rowley Regis) (Con)]

Does the Secretary of State agree that a modern fighting force is a combination of manpower, technology and modern fighting skills, and that nothing he has announced today can detract from that central strategic purpose of the Army?

[Mr Hammond]

My hon. Friend is absolutely right: this is a forward-facing announcement, looking at the Army of the future while respecting the traditions of the past.

Nuclear-powered Submarines

Debate between Lord Hammond of Runnymede and James Morris

Monday 18th June 2012 Commons Chamber

[Mr Hammond]

Yes, the strategic defence and security review makes it clear that we are proceeding with the plans for the replacement Vanguard submarines, subject to a main gate review in 2016. That is the Government’s position, and today’s announcement is simply another step in that process. It is not a new or different announcement but simply proceeds in the direction that we have already set out.

[James Morris (Halesowen and Rowley Regis) (Con)]

Does the Secretary of State agree that what he has announced today is a vital strategic investment in Britain’s nuclear-powered submarine capability, which is vital for maintaining the United Kingdom’s national interest?

[Mr Hammond]

My hon. Friend is absolutely right. Today’s announcement ensures that the capability to build submarine reactor cores, which has been at the heart of our programme since the early 1950s, will continue for the next 40 or 50 years at Raynesway in Derby.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and James Morris

Monday 11th June 2012 Commons Chamber

[James Morris (Halesowen and Rowley Regis) (Con)]

8. What his Department’s planned expenditure on new equipment is over the next 10 years.

[The Secretary of State for Defence (Mr Philip Hammond)]

Before I answer the question, I am sure the House will wish to join me in paying tribute to the three servicemen who have lost their lives in Afghanistan since the House last met: Captain Stephen Healey of 1st Battalion, The Royal Welsh, who was killed by an improvised explosive device in the upper Gereshk valley on Saturday 26 May; Corporal Michael Thacker, also of 1st Battalion, The Royal Welsh, who was killed by gunfire in Nahr-e Saraj on Friday 1 June; and Private Gregg Stone of 3rd Battalion, The Yorkshire Regiment, who was also killed by gunfire, on Sunday 3 June. We owe them a debt of gratitude for their service and sacrifice, which we will never forget. I know the thoughts of the whole House will be with their families and loved ones.

I am sure the House will also want to join me in paying tribute to the bravery of the British and American forces involved in the operation to rescue aid worker Helen Johnston and her three colleagues, and to the Afghans for the huge help they provided throughout. The rescue operation was conducted with immense skill and professionalism in the most difficult terrain imaginable. Through this operation, we send a clear message to terrorists around the world that the UK will not tolerate the kidnapping of our citizens.

As I announced to the House in May, the core committed equipment programme—which covers investment in equipment, data systems and equipment support—amounts to just under £152 billion over 10 years. This includes some £80 billion for new equipment and its support and, for the first time, over £4 billion of centrally held contingency to ensure the robustness of the plan. In addition, the Department has a further unallocated £8 billion in the equipment budget. This will be allocated to projects not yet in the committed core programme only when it is necessary to commit in order to ensure the required delivery, and when the project in question is demonstrated to be affordable and with military advice.

[Mr Hammond]

I agree with my hon. Friend that what our armed forces particularly want to know is that, unlike sometimes in the past, they will always have the protective equipment and the support helicopters that they need. Through our balancing of the equipment plan and introducing the £4 billion contingency fund, they will have much greater assurance that that will the case. That is the least we owe to them.

[James Morris]

Whilst having a long-term plan for defence equipment is crucial for our conventional military capability, does the Secretary of State agree that we also need to be investing in cyber-defence capability, to combat threats to our national security from this rapidly evolving threat?

[Mr Hammond]

The Department certainly recognises the rapidly evolving threat from cyberspace, and we keep it under constant review. The national cyber-security programme has provided the Department with £90 million, and the Department has allocated some additional funding to increase investment in cyber-security this year, enhancing our existing capabilities. It will also be increasingly appropriate to consider cyber-security issues as an integral part of wider projects that depend on networked command and control capabilities.

--- Later in debate ---

[Mr Hammond]

The Chief of the General Staff is in the final stages of an analytical review of recruiting demographics and manning across the Army, looking at the future needs of the Army but also at the very important historical threads that run through the Army. As soon as we have completed that exercise, I will make a statement to the House, and I confidently anticipate that that will be before the summer recess.

[James Morris (Halesowen and Rowley Regis) (Con)]

T7. Encouraging strong leadership in our armed forces is vital to the development of an agile fighting force, so will the Secretary of State join me in welcoming the recent appointments of Commander Sarah West and Commander Sue Moore, both of which are major milestones demonstrating the achievements of women in the armed forces?

Defence Budget and Transformation

Debate between Lord Hammond of Runnymede and James Morris

Monday 14th May 2012 Commons Chamber

[Mr Hammond]

Not to my knowledge.

[James Morris (Halesowen and Rowley Regis) (Con)]

Does the Secretary of State agree that a balanced defence budget combined with sensible procurement in defence are central to protecting Britain’s national interests and allowing the country to make the difficult strategic choices we need to make in a global world?

Strategic Defence and Security Review

Debate between Lord Hammond of Runnymede and James Morris

Thursday 26th January 2012 Commons Chamber

[Mr Hammond]

I agree.

Today’s debate is about the reform of defence. That reform is for a purpose. Sometimes, amid the minutiae of budgets and organisational structures, we need to take care not to lose sight of that purpose: the defence of this nation and our dependent territories against those who threaten our security and our national interest.

The challenge we face is to deliver that defence on a sustainable basis within a resource envelope that the country can afford. That challenge must be set in the context of the fiscal and economic circumstances, as other Members have noted. History tells us that, without a strong economy and sound public finances, it is impossible to sustain in the long term the military capability required to project power and maintain defence. The debt crisis is therefore a strategic threat to the future security of our nation and to the security of the west. Restoring sound public finances is a defence imperative as well as an economic one, and defence must make its contribution to delivering them.

[James Morris (Halesowen and Rowley Regis) (Con)]

Does the Secretary of State agree that, in times of economic austerity, it is important that we develop collaboration with our NATO allies to enhance capabilities, so that we can engage with allies to combat some of the threats that we face?

[Mr Hammond]

My hon. Friend is absolutely right. Part of the answer to the questions raised by the hon. Member for Bridgend (Mrs Moon) is collaboration with NATO allies. They can share assets that they have and that we do not have, and we can reinforce their capabilities in other areas. The smart defence agenda is an important one—it involves collaboration among NATO allies in procurement to ensure that we get the best defence effect we can get with the limited budgets available.

As I have said, defence must make its contribution to delivering sound public finances, so even if the defence programme that we inherited had been in good shape, the spending review and the SDSR would have had to find savings to contribute to overall deficit reduction. However, the defence programme that the Government inherited was very far from being in good shape. At its heart, it had a £38 billion black hole filled with procurement projects that were at best hopelessly over budget and out of control, and at worst pure fantasy. They were projects announced by politicians—actually, mainly one politician—without any budget cover or prospect of ever being delivered, in a programme that had no proper contingency, no effective recognition of risk, and no provision for the “conspiracy of optimism” that was evident in MOD equipment cost estimates. The support programme systematically underprovided for the proper maintenance and sustainment of the equipment that was already in service. In short, Mr Deputy Speaker, it was a shambles.