I beg to move, That the Bill be now read a Second time.
I am proud of the unity that this House has shown in its support for Ukraine. This support has been steadfast since the onset of Russia’s illegal full-scale invasion in February 2022, regardless of the party in office, and it remains so today. We in this House recognise that while Ukraine is on the frontline, it is fighting for democracy and security across Europe. I want to make it clear that this Government stand, and will continue to stand, in unwavering support of Ukraine with our G7 allies.
On 22 October, my right hon. Friends the Chancellor of the Exchequer and the Defence Secretary announced that the UK would contribute £2.26 billion to the G7 extraordinary revenue acceleration loans to Ukraine scheme, the ERA. This landmark agreement will provide Ukraine with a total of $50 billion in vital additional funding, allowing it to continue to fight back against Putin’s war machine. Crucially, these funds will be repaid not by Ukraine, but from the extraordinary profits made on sanctioned Russian sovereign assets held in the European Union.
This Bill simply provides the spending authority for the UK to contribute to the ERA scheme, enabling us to begin disbursing funds to Ukraine. It is another important demonstration of the UK’s commitment to backing Ukraine for as long as it takes. It will unlock our £2.26 billion contribution to the ERA, funding which is additional to all previous commitments.
The UK has long been at the forefront of support for Ukraine. Our total military, humanitarian and economic support pledged since February 2022 already stands at £12.8 billion. We have often been the first mover on military support in particular, which ranges from training over 47,000 Ukrainian military personnel to providing a squadron of Challenger 2 main battle tanks. Earlier this year, the Government announced that the UK would continue to provide guaranteed military support of £3 billion per year to Ukraine for as long as it takes.
But while we can be proud of what the UK has already done for Ukraine, Members of the House need no reminding that Ukraine’s military, budgetary and humanitarian needs continue to be grave. Existing support is not enough; we must go further still to ensure that Ukraine wins this war. We must do this alongside our allies. The ERA is an ambitious scheme, and represents a united G7 pledge, with contributions from the United States, the European Union, Canada and Japan. Our £2.26 billion constitutes a fair and proportionate contribution to the scheme based on the UK’s GDP share in the G7 and EU.
Each lender will now negotiate a bilateral loan with Ukraine to govern how the funds are distributed and spent within a collective framework agreed by the G7. Repayments from the profits on immobilised Russian assets will be redistributed to the G7 lenders from the EU in proportion to our contributions. The EU regulation providing for this is already in place.
The Government have assessed that Ukraine’s most pressing need is for military support. The UK’s contribution to the ERA is therefore earmarked for military procurement to bolster Ukraine’s capacity for self-defence. This support will help ensure that Ukraine can continue to withstand Russian aggression and fight back against it. The UK is committed to ensuring value for money for both the UK and Ukraine, including through exploring the use of existing UK-enabled procurement channels for Ukraine to purchase the equipment that it needs. Our funding will be delivered in three tranches over three financial years, with the first tranche intended to be delivered in early 2025.
The Bill has one simple purpose: to unlock the UK’s contribution to the ERA. It consists of one substantive clause, which seeks the authority of Parliament to spend the money on the UK’s contribution and make good on our commitment. The Bill is not intended to be used for any purpose beyond that, and it will not be used to spend above the £2.26 billion figure that has been announced. Our figure has been agreed with the G7 and caps have been built into the scheme at a G7 level through the EU repayment mechanism.
Although slim, this Bill is essential. Royal Assent is required before we can begin disbursing funds to Ukraine, and before we can receive any repayments from the profits being held in the European Union. It is therefore vital that we pass this Bill as quickly as possible, so we can begin disbursement this winter, as Ukraine’s needs are immediate. I hope that I can count on the support of the House to achieve this, and help us get this vital money into Ukraine’s hands as quickly as possible.
The $50 billion collectively delivered through the ERA lays down a marker to show that we will continue to stand with Ukraine for as long as it takes. Collectively, we will pursue every available means of making Russia pay for the damage it has done in Ukraine. I am proud to present the UK’s contribution to the scheme today, which will make an immediate tangible difference to Ukraine’s capacity to defend itself. This Bill facilitates that contribution, and I commend it to the House.
Before I turn to the Bill, I just say that the Chief Secretary, in an earlier debate, kindly welcomed me to my new role, and I would like to reciprocate that welcome today. He and I have worked together as members of the Business and Trade Committee, which he chaired and of which I believe you were also a member, Madam Deputy Speaker. We had a shared desire to use Parliament to hold to account fearlessly, factually and, when needed, ferociously those who hold authority and power over our constituents. He now finds himself in such a position of authority and power, and I will hold him to account fearlessly, factually and, when needed, ferociously. However, today is not a day for ferocity.
We welcome this Bill. It is an important signal of the continuing commitment of the United Kingdom to the people of Ukraine, the defence of Europe and the achievement of peace through strength. We join the tributes to the people of Ukraine—the men and women who have had to leave behind their peaceful endeavours in order to stand shoulder to shoulder to defend their land and liberties. Today we are talking about financial contributions, but we should never forget that the greatest sacrifice is being made each and every day by members of the Ukraine military and civilians, upon whom Putin’s rockets rain down destruction each and every day.
Under the strong leadership of former Prime Minister Boris Johnson, the United Kingdom led the world in defending Ukraine, and since 2022 we have pledged more than £12 billion in overall support. We were often the first mover on vital lethal aid, from Storm Shadow missiles to Challenger and main battle tanks. We imposed the largest and most severe set of sanctions that Russia had ever seen, to cripple Putin’s war machine. We sanctioned around 2,000 individuals, companies and groups, and this economic pressure restricts Russia’s ability to prosecute its illegal invasion. More broadly, we built up a formidable sanctions regime during our time in office and brought in a major new sanctions strategy to deter and disrupt malign behaviour, and it is pleasing that the current Government are continuing those efforts.
We are now 1,000 days into the Russian invasion of Ukraine and we are entering a crucial period for Ukraine and its people, with the Kursk offensive and Administration change in the United States. I would first like to praise our Government for their evolving strong support for Ukraine, reflecting the needs on the ground. The United Kingdom was the first responder and supporter of Ukraine. The Government’s participation in implementing President Zelensky’s 10-point victory plan is very welcome. Ensuring that the war does not last indefinitely and ends on fair terms is crucial. MPs of all parties work closely on campaigns around aid, sanctions, seizure of assets and so much more.
There is the potential that Ukraine could lose 50% of its military aid support from its international allies. The UK and other supportive nations struggle to make up the shortfall from our own stores. If this remains the case, Ukraine will slowly lose the ability to defend itself. Russia will increase and intensify its atrocities across the country. Where will Russia stop? The increasing rhetoric from the Kremlin needs a robust response. It has been shown again and again to take advantage of perceived weakness. Now, 1,000 days into the Russian invasion of Ukraine, we can take the first step in unlocking frozen Russian assets to support Ukraine. I welcome today’s Bill, which will ensure that the loans made will be repaid with the Russian state’s assets currently frozen in the UK.
The G7 must act collectively on this. At the start of the war, approximately $300 billion of Russian central bank reserves were frozen in the west. We need a route to mobilise these reserves. We must understand how other states have been able to disclose the amount of Russian central bank reserves they hold. We need to know how many billions of pounds of Russian reserves reside in the City of London. Canada has passed the Special Economic Measures (Russia) Regulations, which collects data on Russian assets, freezes them and publishes the value, which currently stands at 135 billion Canadian dollars frozen in Canada. Can the Government move to disclose the level of Russian assets held here in a similar way?
Yesterday, Ukraine entered its 1,000th day since the start of Russia’s illegal and unprovoked invasion, and it is about to enter its toughest winter yet. This Bill represents a significant and welcome step in providing much-needed financial support to Ukraine as it continues its courageous resistance. It will deliver tangible assistance during this critical phase of the conflict, providing a vital lifeline to our Ukrainian allies.
Before the war, my partner and I had the good fortune to travel in Ukraine, visiting both Kyiv and Odesa. We visited modern cities similar to any other in Europe, so the sight of ordinary Ukrainian families being forced, at the start of the Russian attack, to shelter in the Kyiv underground stations that we had both so recently used for sightseeing in that beautiful city was both shocking and moving for us. It also brought home why the UK’s unwavering support for Ukraine is so essential, not just for the brave people of that nation but for all of us. If liberal democratic nations do not stand together against tyranny and aggression, the tyrants will feel no constraint and the citizens of other European nations, including potentially the UK, might find that they are the ones forced into underground stations looking for shelter.
The Liberal Democrats support this Bill and its intent, but we are disappointed that it has taken so long to come to the House. My noble Friend Lord Purvis of Tweed raised this issue back in January, some 10 months ago, but now the Bill is finally here, we are pleased to see that it demonstrates a commitment to ensuring that those responsible for Ukraine’s devastation—Russia and its oligarch elites—should, at the very least, contribute financially to Ukraine’s recovery. However, we believe the Bill does not go far enough.
The UK should consider seizing all frozen Russian assets, not just their profits, and redirect them to aid Ukraine. With around £22 billion-worth of such assets currently held in the UK alone, the Government are missing a significant opportunity to amplify their support. Distinguished international lawyers have made a strong case for this step.
It is a great privilege to be called to make my maiden speech in this most important debate, and it is an honour to represent the people of Amber Valley in this House.
I am proud to be part of a Government with five missions, but my sixth mission is to put Amber Valley firmly on the map. Any Members who have had the misfortune to sit with me in the Tea Room will know exactly where Amber Valley is, because it is my practice to suffix its name with “in Derbyshire”. In fact, Amber Valley is known as the heart of Derbyshire, and deservedly so, because not only is it right in the middle of our wonderful county, but its people have the biggest hearts. They are among the most friendly people in the world, but they are also unyielding. It is no surprise that they are descendants of those involved in the last revolution in England, the Pentrich revolution of 1817, during which a group of constituents plotted an armed uprising, angry about the state of the economy and demanding parliamentary reform. Hon. Members will understand my relief at being part of a Government who are committed to making people better off and reforming the House of Lords.
Originally a mining area, the local economy has since developed a diverse industrial base. I am delighted we are driving forward our industrial strategy, so that businesses such as those headquartered in Amber Valley can thrive. Firms such as Thorntons Chocolates, Denby Pottery, Bowmer and Kirkland, Berry Recycling, National Gas and David Nieper provide employment.
The last of those companies lends its name to a school in Alfreton, which it oversees. That is a fine example of business supporting the local community. The school’s ethos is to ensure children can raise their aspirations, breaking down the barriers to opportunity. That is so important for our young people in Amber Valley. Youth services have been cut back, and the gap that has been left is filled by the hard work and dedication of local people, such as James at Ayup in Alfreton, and Chrissy and Mikey at Old Farm Bus in Ripley Marehay.
I pay tribute to the hon. Member for Amber Valley (Linsey Farnsworth) for her excellent maiden speech. She spoke movingly and touchingly about her father and about dementia, and it is a theme that we must come back to in this House. It is really profound. I also share her admiration for Nigel Mills, who was an excellent predecessor, and she was very magnanimous in her comments about him. I will be sure to see her in the Tea Room to hear more about Derbyshire. Hopefully, she will not be dictating that I drink a Mojito, because I cannot bear them.
I understand that the Financial Assistance to Ukraine Bill is being steered through the House by the Treasury—quite right too—but I think it would be worth my saying at the outset why the Bill is a positive development in security, defence and foreign affairs.
In December 2021, amid the build-up of Russian troops on the border of Ukraine, Vladimir Putin wrote two letters. He wrote one to the United States and one to NATO. His demands included a Russian veto on NATO membership for Ukraine and the implied removal of US nuclear weapons from Europe and the withdrawal of multinational NATO battalions from Poland and from the Baltic states of Estonia, Latvia and Lithuania. That would have been completely and utterly unacceptable, and we can only surmise why he might have wanted NATO to act in this way. It is because once ground is taken it is that much harder to take back. Offence is so much more costly than defence.
It is to the issue of costs that we must now turn. The purpose of the Bill is to support the $50 billion G7 initiative launched in June, which represented a co-ordinated effort by the G7 and the EU to support Ukraine. However, with Hungary potentially blocking concerted EU action, I welcome the provision in the Bill that will ensure that future financial assistance extends to any changes in subsequent arrangements, in case we can reach broader consensus later. It is crucial that we collaborate with our EU partners to swiftly advance the agreement.
It is a pleasure to have heard the beautiful maiden speech of my hon. Friend the Member for Amber Valley (Linsey Farnsworth), whose father must be really proud.
It is excellent to hear the details of the Bill, but Russia’s continued assault on Ukraine is absolutely terrifying. We must not buy into a narrative of peace on Russia’s terms; that would be tantamount to appeasement. A sovereign, democratic country ceding territory to an aggressive imperial country basically takes us back to world war two—an idea that I find absolutely terrifying. It would completely embolden Putin, and eastern Europe and the Baltic would be next on his target list.
It is completely right to say that defence of the UK starts in Ukraine. We are doing everything we can to support Ukraine. It was great to hear about the 50,000 Ukrainian troops who have been trained by the UK through Operation Interflex, and I am glad that that policy is being extended. It is excellent to hear about the military support that we are providing to Ukraine, including the Storm Shadow missiles that we are hearing about in the media at the moment. I trained on those weapons, and I hope that they can help to take the fight to the Russians. It is also excellent to hear that we are providing financial support of £12.8 billion, as well as an additional £2.26 billion from interest on seized Russian assets.
Unfortunately, 1,000 days since the invasion of Ukraine, the Russian economy is, despite sanctions, doing better than many of us expected at the start of the conflict. However, the Russians do face challenges, including the highest casualty rate since the conflict began, higher interest rates, and now a labour shortage in the Russian economy. We must sustain our support for Ukraine and increase the pressure on Russia, which cannot be allowed to succeed.
The Bill is an important step in sustaining our support for Ukraine. The £2.26 billion will help Ukraine to invest in air defence, artillery and other military equipment. I fully support the Bill, but I have a couple of questions for the Minister. What more can be done to seize frozen Russian assets? I think in particular of the £2.25 billion from the sale of Chelsea football club, and other assets that must be held in the City of London. We must use everything in our arsenal, and I would like the UK Government to do more to seize and use such assets, rather than using just the interest, as we are committed to doing at the moment. Will she confirm whether this is a non-recourse or recourse loan? It is important that, if the interest from Russian assets is not what we expect it to be, there is no expectation on the Ukrainians, given all the difficulties that they are facing, to repay the bill.
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On behalf of the United Kingdom, my right hon. Friend the Member for Richmond and Northallerton (Rishi Sunak) hosted the Ukraine recovery conference last year, raising over $60 billion for Ukraine’s recovery and reconstruction. This Bill takes a further step forward in our commitments to Ukraine, and does so alongside our allies. It fulfils the United Kingdom’s part of June’s G7 mandate—confirmed by G7 finance Ministers in Washington last month—to disburse for the benefit of Ukraine approximately $50 billion from the extraordinary revenue acceleration loan, or ERA, as the Chief Secretary termed it. The United Kingdom’s share is £2.26 billion, and this is earmarked as budgetary support for Ukraine’s military spending. I understand that it will be in addition to the UK’s existing annual commitment of £3 billion of military aid. Each loan will be in the form of a bilateral loan, but will be based on common principles to ensure consistency and co-ordination between each loan.
We support the Bill and will support the Government if any other party seeks to divide this House, but I would be grateful if the Chief Secretary or the Minister could provide further clarification on several questions. The first is about disbursements to Ukraine under the extraordinary revenue acceleration loan. Point 5 in the annexe to the G7 statement says:
“Loans will be fully disbursed to the benefit of Ukraine between 1 December 2024 and 31 December 2027.”
The whole House will be aware of the current heightened levels of military activity and the urgent demands from Ukraine for assistance, including UK Storm Shadow missiles. What discussions has the Minister had with the Secretary of State for Defence about the timings and scale of distributions?
Secondly, I want to ask about the asset base. Can the Minister update the House on the total value of Russian assets seized by the G7, and on the total assets seized by UK jurisdictions? The last estimates we had were in March 2023, when the total was £48 billion, of which £18 billion was seized by UK jurisdictions. As the extraordinary revenue acceleration loan refers only to sovereign assets, will the Minister tell us what consideration was given to the inclusion of income streams from other seized Russian assets, and why it was determined that they should not be included? Do the commitments made by each G7 country relate to the amount of Russian assets seized or held by a jurisdiction, or are they done on some other basis? If so, what is the basis for those allocations? Can the Minister give some indication of the allocation of seized sovereign assets by type? As they are sovereign assets, I assume that many will be in the form of cash holdings, but there may be properties and other assets. It would be helpful for the House to have some understanding of the allocation of these assets by type.
Thirdly, I want to ask about the use of anticipated income streams from Russian assets to repay the loans. The Bill’s explanatory notes claim:
“The extraordinary profits on the immobilised Russian sovereign assets will then be divided between the G7 lenders in proportion to their contributions. This will happen as the extraordinary profits accrue, on a 6-monthly basis…in three tranches”.
I have three similar questions on this issue. Has there been any modelling of the future flows of anticipated income from seized Russian assets that will be used to repay the loans? Has the Treasury made an assessment of the expected period for their repayment? Can the Minister provide the House with a forecast or estimate for the anticipated revenues available for repayment in each of the tranches?
Fourthly, I want to ask about contingencies. There are five participants in the loan agreement: the UK, the USA, Canada, Japan and the EU. Can the Minister advise whether the terms of the agreement will still stand if one or more of the participants do not ratify it? In the event of a peace settlement, subsequent to disbursements being made, point 12 of the annexe to the ERA loan initiative says that
“the outstanding balances that cannot be covered by extraordinary profits shall be repaid by Ukraine to each lender.”
Can the Minister advise whether that is the case? In such circumstances, what priority will the repayment of these loans have compared with other loans made to Ukraine?
Finally, I want to ask about the Government’s overall defence expenditure. The Government’s Budget committed to setting out a pathway to increase defence spending to 2.5% of GDP at a future fiscal event. Since then, however, Labour Ministers have been unable to confirm whether it remains Labour’s ambition to meet that target by 2030. Can the Minister confirm whether it is still Labour policy to increase defence expenditure to 2.5% of GDP, when that might be reached and whether the commitments contained in this Bill will be included in such estimates?
The principles underlying the Bill are sound. Our commitment to the defence of Ukraine is reinforced. Our prayers are with the people of Ukraine and the cause of peace and freedom. We support the Bill.
I also wish to call for the seizure of Russian central bank reserves to pay for the defence of Ukraine. Many Governments are seizing the profit generated from the frozen money and using that to back Ukraine. The US has passed legislation giving the President the power to do that, and I welcome this legislation, which will move us in the same direction. In the UK, we also have £2.5 billion frozen from the sale of Chelsea football club. If unlocked, it could create the second wealthiest charity in Britain, but it remains frozen in a UK bank account. Can the Minister outline what steps he is taking to immediately release this funding, which would provide much-needed humanitarian aid to Ukraine? In Ukraine, winter is not coming; winter is here.
We must decide on a route to mobilise the UK’s seizure of Russian assets. The estimated cost of reconstruction in Ukraine is at least $486 billion over the next decade, and growing every day. We must begin the process of confiscating the Russian central bank reserves in the UK with this Bill. Defending Ukraine’s democracy is defending our democracy. I look forward to the potential of this Bill to be a route to mobilising billions of pounds of Russian central bank reserves. Can the Minister clarify the position on whether the loans in the Bill today will be in the form of a recourse or non-recourse loan?
The Financial Assistance to Ukraine Bill allows the UK to fulfil our commitment made in the June 2024 G7 loan agreement to Ukraine. The UK’s expected contribution under this agreement is approximately £2.26 billion, which Ukraine can decide to utilise for its defence. We have Russian central bank deposits in the Bank of England, as well as Russian bonds that have matured and the funds deposited in UK commercial banks. Can the Minister outline when we will legislate to seize these assets for the defence and reconstruction of Ukraine, as they dwarf the sums we are debating today? I conclude by again thanking Ministers in the Treasury, the Foreign, Commonwealth and Development Office and the Ministry of Defence for their stalwart support of Ukraine. Slava Ukraini!
Although some economists have expressed concern about repercussions in the financial markets, we believe that, given the very specific circumstances of this conflict, the justification and the benefits far outweigh those concerns. Such action would provide an immediate and substantial financial boost to President Zelensky’s forces and Ukraine’s reconstruction efforts, while sending a clear message to the Kremlin that aggression against sovereign nations will have severe and lasting consequences. We therefore also back the calls for a special tribunal to prosecute those responsible for Russia’s war of aggression and to ensure accountability for the heinous crimes committed.
The Liberal Democrats have consistently called for the UK to lead by example in supporting Ukraine, extending it beyond financial assistance to include military, diplomatic and humanitarian measures. The provision of advanced weaponry, including longer-range precision arms, is critical to Ukraine’s success. We must also bolster British arms and ammunition supplies, work closely with our allies to replenish stockpiles, and maintain Ukraine’s defensive capabilities. It is essential that we co-ordinate effectively with NATO and the European Union to maximize collective impact, which is why I urge the Government to be bolder in their efforts to rebuild our relationship with the EU, including by deepening our security and military co-operation.
We urge the Government to build an international consensus for the proscription of the Wagner Group, whose activities represent a grave threat to international security. The UK must also take a strong stance against Russia’s continuing human rights violations and support anti-war activists within Russia, many of whom face persecution for their bravery. Offering asylum to such individuals and raising their cases in international forums is not only a moral imperative but a strategic means of undermining the Kremlin’s control.
It is vital to recognise that supporting Ukraine financially and militarily should not come at the expense of other nations in need. Restoring the 0.7% gross national income target for international development spending is a crucial step towards ensuring that humanitarian aid to Ukraine does not result in the neglect of our wider global responsibilities. The Government’s failure to meet this target undermines Britain’s reputation as a global leader in development and humanitarian support.
The Liberal Democrats also urge the Government to take robust action to close the loopholes in economic crime legislation that have allowed Putin’s allies to funnel dirty money through the UK for far too long. A Financial Times investigation published yesterday revealed that companies in British overseas territories exported $134 million-worth of goods to Russia in 2024, potentially breaching UK sanctions aimed at restricting access to military and high-tech supplies. I call on the Minister to give an undertaking that the Government will look to address these violations and close these loopholes.
The National Crime Agency must be properly resourced to tackle economic crime effectively, and Magnitsky sanctions should be used to target relatives and associates who attempt to evade existing measures. This is about far more than financial probity; it is about standing up for the rule of law and ensuring that our financial system cannot be used to bankroll aggression.
This Bill comes at a moment of uncertainty. The possibility of diminished US support for Ukraine, following the recent election and the imminent return of Donald Trump to the presidency, is deeply concerning. Should the United States falter in its support, Europe must step up. This should serve as a wake-up call for the UK Government to lead in Europe by seizing frozen Russian assets, reversing damaging cuts to our armed forces and strengthening co-operation with both NATO and the European Union on security and foreign policy.
With a hard winter ahead, time is of the essence. The UK must not waver in its commitment to Ukraine. This is about more than financial assistance; it is about justice, accountability and the preservation of international law. This Bill is a vital step forward, but it must not be the final word.
We must demonstrate bold leadership by acting decisively to ensure that Ukraine not only survives but prevails, and that the principles of sovereignty, freedom and democracy endure. Let this Bill be the beginning of a renewed and united effort to support Ukraine. By seizing frozen Russian assets, providing advanced military support and working closely with our allies, we can help Ukraine to secure a lasting victory and ensure a future of peace, stability and justice for Europe and beyond. Let us rise to this challenge for Ukraine, for Europe and for the values we hold dear.
I am the fourth MP for Amber Valley. The first, Phillip Oppenheim, is credited for having brought the mojito to the UK. I cannot promise to do anything so exciting when I leave this place, beyond perhaps sampling one or two of those in our new bar in Alfreton. It is aptly named the Moot Bar, by virtue of its overlooking the marketplace, where moot hearings, which are believed to have led to the modern day jury system, were held to settle disputes and try offenders. It is a fitting place for a former Crown prosecutor such as myself to frequent.
The second MP was Judy Mallaber, of my party, who still makes a huge contribution to our community. Judy worked hard for the introduction of the minimum wage. I am delighted this Government are building on that legacy, increasing the national living wage and introducing the biggest improvement of workers’ rights in a generation.
Most recently, Amber Valley was represented by Nigel Mills. Nigel is a thoroughly decent man, who served as a dedicated constituency MP for 14 years. He is rightly proud of being the longest serving MP for Amber Valley. I wish him well.
We have heard mention in many maiden speeches of firsts—the first female MP, the first MP for a new constituency and even the first MP with a beard. In that spirit, I found myself looking for mine. Could I be the first Crown prosecutor to enter Parliament? Rumour has it that someone has beaten me to that particular accolade. I am relieved that you are in the Chair, Madam Deputy Speaker, because I also found myself googling whether I am the first MP named Linsey. I hope that does not affect my chances of Mr Speaker calling me in the future. I am, however, the first Amber Valley MP to have been born in the constituency—technically. I was born in Ilkeston, a town now in neighbouring Erewash, but at the time Ilkeston was a constituency with my three towns, so I was technically born in the constituency, but perhaps that is a lawyer’s argument.
The Labour party was formed to give ordinary people a voice and to improve lives. My dad is David Farnsworth and he would say that he is an ordinary man. He also has a catchphrase: “Let me tell you a little tale.” To coin his catchphrase, I would like to tell the House a little tale about the Labour party through the life of that so-called ordinary man.
There has been much debate about what a working person is, but I know it when I see it: it is my dad. Originally a coalminer, like so many others he went into the dark so that his children’s lights would shine. I am pleased the Government are returning the pension fund to miners such as my dad and the 772 former mineworkers in Amber Valley. Righting that wrong was a manifesto commitment—and we are keeping our promises.
Our lives changed when I was 12 and my mum Margaret was diagnosed with cancer. She was one of the most caring people, always putting others first. Her late diagnosis was a result of her not wanting to be a burden on our already overstretched NHS. She died less than two months later. I do not want any family in Amber Valley to go through that. This Government will get our NHS back on its feet—we must.
After my mum died and the pits closed, my dad was out of work. The Labour Government gave him the opportunity to retrain as a bricklayer. He attended what was then South East Derbyshire College in Heanor, in a beautiful Victorian building. Long since closed and left derelict, it is now being refurbished and will house small businesses and provide community space. Together with the newly renovated marketplace, the Labour-controlled borough council is ensuring that Heanor town centre will be a welcoming place for residents to visit, while boosting our local economy.
My dad went on to build hundreds of houses and, had he not retired, I am sure he would be building his fair share of the 1.5 million homes that we have promised to provide within this Parliament. My dad would say that he is an ordinary man. I say “would say” because he cannot any more. Dementia has taken his voice. My wonderful stepmum Kate cares for him. She is one of the 5.2 million unpaid carers in the UK. I am glad that this Government are improving carer’s allowance, but we must go further and create a national care service.
My dad would say that he is an ordinary man. I say that he is extraordinary, for it is his values and guidance that have led me to this place. My upbringing instilled in me a drive—a drive to make society fairer. That led me to serve as a Crown prosecutor for 21 years, working to secure justice for victims. It was, until my election to this place, the greatest honour of my life. I intend to continue to fight for justice, to fight for those suffering injustice and to use my voice for the people of Amber Valley.
My goal to combat injustice extends particularly to the people of Ukraine. I visited Ukraine in September with fellow Labour MPs. We saw the human suffering of war: the homes destroyed, the children’s cardiology hospital bombed while young children were on the operating table, the cellar of a school where civilians were held captive by Russian troops in the most appalling conditions. Ukraine is defending herself, but she is also defending us, our values and our freedoms. We must do everything we can to support Ukraine both now and for the rebuild after the conflict is over, and I fully support the Bill.
We must deliver on our promises to rebuild trust in politics and show that it can be a force for good. My children have given me the affectionate nickname, “the vicious dictator”. I am not sure whether I am best placed to lead on this, but I shall try. I promise, Madam Deputy Speaker, that my home is not a dictatorship, but it can be seen through a political lens. My eldest son once made a placard at bedtime with the slogan, “We want another story and we want it now”. He was a strong campaigner even at the tender age of 10—he is now 17. My youngest son is an effective lobbyist, as his collection of trainers will attest. My stepdaughter is chief whip, managing to bring together the boys even in the most challenging of debates. My brilliant husband Martin makes a wonderful Speaker of our House, keeping order and holding it all together. We all know that politics is all-consuming and hugely onerous on families. The love, understanding and support that Martin and our children have given me has been integral to my being in this place.
No maiden speech for Amber Valley would be complete without mentioning Butterley Engineering, around which the town of Ripley was founded. Sadly no longer open, it leaves behind a blast furnace wall and an underground wharf, both now scheduled monuments. Friends of Butterley Ironworks Trust are hoping to turn this heritage into good use with a visitors’ centre. I will happily support them with that. Butterley Ironworks may be gone, but there is a reminder for me twice weekly, as I walk under the iron arches in St Pancras train station and pass the sign that reads, “Manufactured by the Butterley Company, Derbyshire, 1867”. The majesty of those iron arches is a constant link between representing Amber Valley in this place and the people responsible for sending me here, who I thank greatly and promise to serve in the spirit of the Amber Valley motto, “Per laborem progredimur”—“We progress through hard work”.
The Minister talked about the UK being a first mover in this space, which is very welcome, although states such as Estonia, Finland and Czechia worked on it prior to us, and Canada has been a driver of it too. The UK’s £2.26 billion contribution to the G7 arrangement reflects our GDP share, but as a leader in supporting Ukraine, I feel we need to go beyond simply a proportional share. After all, doing so could provide support for Ukraine in place of some taxpayers’ money. It is welcome that the UK is contributing £3 billion annually, and the Government have pledged to maintain that for as long as it takes, but as Zelensky said, why should western taxpayers foot the bill when frozen Russian assets could be confiscated and given for use by Ukraine? The Bill is a positive step, but we should talk about not just future profits generated from frozen Russian assets, but the principle—the assets themselves. The approach set out today uses only a fraction of the $300 billion available, much of which is held at Euroclear central securities depository. To support Ukraine effectively, we must go further. We should repurpose all these assets—not just the profits, but the principle.
Some critics argue that confiscating the funds would pose legal risks. They talk about sovereign immunity—an argument that is also used by some who oppose the prosecution of leaders for the crime of aggression—but sovereign immunity should also apply when thinking about the sovereignty of states. Legally, we have to think about how Russia violated international law. It violated the UN charter and blatantly breached the charter’s principle of state sovereignty. It is estimated that Russia has already caused £400 billion worth of damage—that is what will be required to rebuild Ukraine—and Russia will ultimately have to pay to make good that damage, but what use will the frozen assets be to Ukraine if Ukraine no longer exists? The goal cannot be only to rebuild Ukraine from the rubble, but to help Ukrainians prevent their country from turning to ash.
Some argue that confiscating the assets could destabilise global markets, or deter other nations from holding reserves in western financial institutions in the future, but those fears are overstated, and need to be weighed against the risk of doing nothing. The dominance of western financial systems remains robust. Alternatives such as China’s renminbi lack the stability and scale of the US dollar. Cryptocurrencies are too volatile to be a viable alternative, so the risk of inaction should be thought of in terms of what has happened in global markets since the full-scale invasion of Ukraine in 2022. There was a very wobbly period, including here in the UK with the Liz Truss mini-Budget, which was partly about supporting people with their energy bills. At the time, the Government felt that they had to provide such support because of the rise in the price of gas caused by Russia’s illegal invasion of Ukraine. Again, we cannot just suppose that doing nothing will have no consequences. There are concerns that confiscation could reduce our leverage in future peace negotiations, but this war first needs to be won. This is not the Gulf war in 1991 when frozen assets were used to compensate Kuwait; this war is still not determined.
Other states considering investing in western institutions have nothing to fear if they have no intention of invading their neighbours. As things stand, Russia has shown little interest in meaningful dialogue. To simply wait and keep the assets as a negotiating tool is naive and defeatist. By repurposing the assets now, we not only support Ukraine’s immediate needs, but reinforce the principle that aggression must not pay and that nuclear sabre-rattling is completely unacceptable.
As the Liberal Democrat spokesperson, my hon. Friend the Member for Lewes (James MacCleary), said, the geopolitical context underscores the urgency of the moment. Trump commented in March that he sees US isolationism as attractive. When talking to the hon. Member for Clacton (Nigel Farage) on GB News, he said,
“We have an ocean in between some problems… a nice big, beautiful ocean.”
With the United States facing questions about whether its support for Ukraine could be reduced or even diminish, we need to think further about what more we can do with our European allies. Acting now to unlock the full potential of Russian assets would provide Ukraine with a financial lifeline insulating it from shifts in political will elsewhere in the world.
The Bill highlights the importance of collaboration with our European partners. As the shadow Chief Secretary to the Treasury, the hon. Member for North Bedfordshire (Richard Fuller), pointed out, UK taxpayers have already contributed over £12 billion in aid to Ukraine since February 2022, but our absence from EU defence frameworks limits our ability to co-ordinate effectively with those European allies. We could use some of the confiscated frozen assets to support joint procurement, perhaps associating with some of the frameworks, such as the European Defence Agency. Shared management of those confiscated funds would ensure transparency, accountability and maximum impact. The future profit funds, suggested as a base for the Bill, are scheduled to be disbursed between December 2024 and 2027. That timeline does not match the urgency of Ukraine’s need.
Just last weekend, we saw Russia’s largest attack on Ukrainian infrastructure in months. Russia launched 120 missiles and 90 drones. Three weeks ago, the Finnish Government took a bold step by confiscating $4.5 billion in Russian assets, making Finland one of the first countries to take decisive action. The Finnish confiscation must surely be hitting Russia where it hurts, and we should follow the examples set by Finland, Czechia and Estonia, working together to confiscate those Russian assets—including the principal, not just the interest.
The stakes could not be higher: Ukraine’s fight is a fight for eastern Europe and the west more broadly. It is a fight for the principles of democracy, sovereignty and international law that underpin global peace and security. I welcome the Bill, but it is vital that the provisions align with the goal of confiscating all Russian assets to support Ukraine financially. Let us rise to the challenge, demonstrate solidarity with Ukraine, and show leadership on the global stage and unwavering friendship to our European allies. By collaborating with those European allies to confiscate Russian assets, we can help pave the way for an outcome that makes it plain to any Government who are watching that aggression does not pay.