Budget Resolutions Debate

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Budget Resolutions

Tom Tugendhat Excerpts
Monday 29th October 2018

(5 years, 6 months ago)

Commons Chamber
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Tom Tugendhat Portrait Tom Tugendhat (Tonbridge and Malling) (Con)
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Thank you very much, Madam Deputy Speaker, for letting me speak on the first day of the Budget debate.

I am slightly disappointed, if I may be honest, to be speaking on the first day, but as there is not a day allocated to foreign affairs and defence, I have taken the opportunity to speak today. I hope the House will forgive me if I focus a little bit on foreign affairs. Like most of us, I welcome the extra resources going to the Ministry of Defence to ensure that the programmes agreed in the 2015 defence review are carried out, but at this moment of immense strategic change, when not only the United Kingdom but the world is changing from multilateralism to bilateralism in many of the largest countries—I am thinking, of course, particularly of the United States and China—it is a little surprising that we did not hear mention of the Foreign Office from a former Foreign Secretary.

What is perhaps more surprising is that we do not see the increase in the Foreign Office budget that is so necessary. Increases to Foreign Office budgets can sound very large in percentage terms, but they look like rounding errors when compared to spending on defence, international development and especially health and social welfare. I hope that the absence from the Government Front Bench of a phrase on foreign affairs today was not reflective of the thought that it is not something to talk about, but rather that greater thought needs to go into our strategic laydown, our strategic engagement and the position of the United Kingdom in the years to come. At the very least, one could have argued for a small mention for Foreign and Commonwealth Office pay, which in some cases is as much as 20% behind other Departments. However, this is a day not for parochial—or indeed, international—appeals, but for talking about the Budget as a whole. I welcome the opportunity to do so, because the Budget addressed some fundamental things that I see as the beginning of the message that this party, and this Parliament, need to push back on and make clear.

The first is fairness, which we need to talk about more radically and more informatively. We have heard often, and quite rightly in many cases, about fairness in welfare. My right hon. Friend the Member for Sutton Coldfield (Mr Mitchell) highlighted very powerfully fairness in universal credit and for those who are most in need, and I agree with him entirely, but other aspects of fairness have not been touched on, and they are equally important. One of these is the increase in the minimum wage and the living wage that we have seen since 2010. It has been an enormous rise, almost double the rate of inflation, and it has gone a hell of a long way to increasing fairness in work. We all know that in-work poverty is still a challenge, so increasing pay and fairness for those who are working, striving and doing their bit is fundamental to a Conservative principle, and I am glad that the Chancellor reflected that.

I am also glad that he reflected that in announcing a digital tax, because this is something on which—I cannot believe I am saying this—I agree with the hon. Member for Wallasey (Ms Eagle). The whole point about rentier economies is that they become very destructive and undermining. This is about addressing some of those so-called FANGs—Facebook, Amazon, Netflix, and Google—and the fact that over a few years, they have acquired the controlling heights of an economy and the best programmers and engineers, then rewarded them with share options and tax schemes that effectively mean nobody can else can afford to hire them. They have taken over a rent-generating state in much the same way as other industries did in times past. Therefore, addressing that through taxation—the Chancellor has begun to do that, but it really does require a global response—is an essential part of reforming the economy, so that we can get back to what Conservative Members fundamentally believe in, which is that business is good for the economy when it liberates and empowers, when it is competitive, and when it sees aspiration, enterprise and innovation. That is not the same as the overwhelming control of a few businesses and individuals, and that is a danger that we have come to.

I was very pleased, therefore, to see that included, particularly as I have the great privilege of representing three of the finest towns in the country—Edenbridge, Tonbridge and West Malling—all of which are blessed to fall in the wonderful county of Kent and all of which are struggling with their high streets, because they are being challenged, as others are, by organisations off the high street. It is true that the nature of high street shopping is changing, and that deliveries and online shopping have made life enormously easier for us—I speak as the father of two very young children, and my wife works as many hours as I do. The two of us, like so many in our generation, rely on the ability to have goods delivered, so I am not going to condemn the online economy. However, we have to recognise that the high street has a place in our community and not just our economy. Part of our identity as people is to come from a community where we can shop together and be together and understand that actually, it ain’t all about the cash. That is a phenomenally important part of the Chancellor’s Budget today.

The Chancellor also put forward a few other things, and forgive me if I touch on one very personally. The last issue I want to talk about is his commitment to veterans’ welfare. Many Members will know that I came to this place straight after serving in the military. I am very proud of that service, but I am also very saddened by some things that I have seen in the years since. There was a report in The Sunday Times—I do not know how many Members read it—about the number of suicides among our veterans. What the Chancellor is doing in recognising that veterans’ mental health is a particular issue is extremely important. However, what he did not touch on, and I will press this point, is going further and saying, “Look, this is not simply the duty of the state. It is not simply up to the Ministry of Defence or the Army.” When I returned from Iraq in 2003, I remember that what I missed was not a psychiatrist or professional help. What I missed——what I failed to get initially—was understanding from wider society, and that left me feeling angry, cut off and isolated. I was lucky; I was blessed—I had friends who saw that this was not going well and family who surrounded me with love and supported me through what was a very trying time. However, this is a duty on all of us. The Chancellor nodded towards the direction of the state’s responsibility, and I welcome that, but this is something that we as a House, as communities and as a nation have to do together.

None Portrait Several hon. Members rose—
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