With permission, Mr Speaker, I shall make a statement on the mission of this new Conservative Government.
Before I begin, I am sure that the whole House will join me in paying tribute to my right hon. Friend the Member for Maidenhead (Mrs May) for all that she has given to the service of our nation. From fighting modern slavery to tackling the problems of mental ill health, she has a great legacy on which we shall all be proud to build.
Our mission is to deliver Brexit on 31 October for the purpose of uniting and re-energising our great United Kingdom and making this country the greatest place on earth. When I say “the greatest place on earth”, I am conscious that some may accuse me of hyperbole, but it is useful to imagine the trajectory on which we could now be embarked. By 2050, it is more than possible that the United Kingdom will be the greatest and most prosperous economy in Europe, at the centre of a new network of trade deals, which we have pioneered. With the road and rail investments that we are making and propose to make now and the investment in broadband and 5G, our country will boast the most affordable transport and technological connectivity on the planet. By unleashing the productive power of the whole United Kingdom—not just of London and the south-east, but of every corner of England, Scotland, Wales and Northern Ireland—we will have closed forever the productivity gap and seen to it that no town is left behind ever again and no community ever forgotten.
Our children and grandchildren will be living longer, happier and healthier lives. Our kingdom in 2050—thanks, by the way, to the initiative of the previous Prime Minister—will no longer make any contribution whatsoever to the destruction of our precious planet, brought about by carbon emissions, because we will have led the world in delivering that net zero target. We will be the home of electric vehicles—cars and even planes—powered by British-made battery technology, which is being developed right here, right now. We will have the free ports to revitalise our coastal communities, a bio-science sector liberated from anti-genetic modification rules, blight resistant crops that will feed the world, and satellite and earth observation systems that are the envy of the world. We will be the seedbed for the most exciting and dynamic business investments on the planet. [Interruption.]
Order. I apologise for interrupting the Prime Minister. There is far too much noise in this Chamber, and there are far too many Members who think it is all right for them to shout out their opinion at the Prime Minister. Let us be clear: it is not. The statement will be heard, and there will be ample opportunity, in conformity with convention, and as established by me over the last decade, for colleagues to question the Prime Minister, but the statement will be heard, and heard with courtesy.
Mr Speaker, I applaud your intervention. I also think there is far too much negativity about the potential of our great country, as I think you will agree. Our constitutional settlement, our United Kingdom, will be firm and secure; our Union of nations beyond question; our democracy robust; our future clean, green, prosperous, united, confident and ambitious. That is the prize, and that is our responsibility, in this House of Commons, to fulfil. To do so, we must take some immediate steps. The first is to restore trust in our democracy, and fulfil the repeated promises of Parliament to the people by coming out of the European Union, and by doing so on 31 October.
I and all Ministers are committed to leaving on this date, whatever the circumstances. To do otherwise would cause a catastrophic loss of confidence in our political system. It would leave the British people wondering whether their politicians could ever be trusted again to follow a clear democratic instruction. I would prefer us to leave the EU with a deal; I would much prefer it. I believe that it is possible, even at this late stage, and I will work flat out to make it happen, but certain things need to be clear. The withdrawal agreement negotiated by my predecessor has been three times rejected by this House. Its terms are unacceptable to this Parliament and to this country. No country that values its independence, and indeed its self-respect, could agree to a treaty that signed away our economic independence and self-government, as this backstop does. A time limit is not enough. If an agreement is to be reached, it must be clearly understood that the way to the deal goes by way of the abolition of the backstop.
For our part, we are ready to negotiate, in good faith, an alternative, with provisions to ensure that the Irish border issues are dealt with where they should always have been: in the negotiations on the future agreement between the UK and the EU. I do not accept the argument that says that these issues can be solved only by all or part of the UK remaining in the customs union or in the single market. The evidence is that other arrangements are perfectly possible, and are also perfectly compatible with the Belfast or Good Friday agreement, to which we are, of course, steadfastly committed. I, my team and my right hon. Friend the Secretary of State for Exiting the European Union are ready to meet and talk on this basis to the European Commission, or other EU colleagues, whenever and wherever they are ready to do so.
I welcome the right hon. Gentleman to his position and thank him for an advance copy of his statement.
No one underestimates this country, but the country is deeply worried that the new Prime Minister overestimates himself. He inherits a country that has been held back by nine years of austerity that hit children and young people the hardest. Their youth centres have closed, their school funding has been cut and their college budgets slashed, and with the help of the Liberal Democrats, tuition fees have trebled. Housing costs are higher than ever, and jobs are lower paid. Opportunity and freedom have been taken away. Austerity was always a political choice, never an economic necessity—[Interruption.]
Order. I indicated that people would not shout down the Prime Minister. Precisely the same applies to the Leader of the Opposition. Don’t try it: you are wasting your vocal cords and, above all, it won’t work. The right hon. Gentleman will be heard and these exchanges will take as long as they will take, whatever other appointments people might have. The right hon. Gentleman will be heard. Stop it!
The right hon. Gentleman’s predecessor promised to end austerity, but spectacularly failed to deliver. People do not trust the Prime Minister to make the right choices for the majority of people in this country when he is also promising tax giveaways to the richest and big business—his own party’s funders. So can he now indicate when he will set out the detail of the exact funding settlement for our schools and for our hard-pressed local authorities and police, so that they can start planning now? We must also address the deep regional inequalities in this country. The northern powerhouse has been massively underpowered and the midlands engine has not been fuelled, so will the Prime Minister match Labour’s commitment to a £500 billion investment fund to rebalance this country through regional development banks and a national transformation fund?
The right hon. Gentleman has hastily thrown together a hard-right Cabinet. I have just a couple of questions on those appointments. Given his appointment of the first Home Secretary for a generation to support the death penalty, can he assure the House now that his Government have no plans to try to bring back capital punishment to this country? And before appointing the new Education Secretary, was he given sight of the Huawei leak investigation by the Cabinet Secretary?
I am deeply alarmed to see no plan for Brexit. The right hon. Gentleman was in the Cabinet that accepted the backstop and, of course, he voted for it on 30 March this year. It would be welcome if he could set out what he finds so objectionable, having voted for it less than four months ago. Can he explain this flip-flopping? The House will have a sense of déjà-vu and of trepidation at a Prime Minister setting out rigid red lines and an artificial timetable. There is something eerily familiar about a Prime Minister marching off to Europe with demands to scrap the backstop, so why does he think he will succeed where his predecessor failed?
The office of Prime Minister requires integrity and honesty, so will the Prime Minister correct his claim that kipper exports from the Isle of Man to the UK are subject to EU regulations? Will he also acknowledge that the £39 billion is now £33 billion, due over 30 years, and has been legally committed to be paid by his predecessor? This is a phoney threat about a fake pot of money, made by the Prime Minister.
We also face a climate emergency, so will the Prime Minister take the urgent actions necessary? Will he ban fracking? Will he back real ingenuity like the Swansea Bay tidal lagoon? Will he increase investment in carbon capture and storage? Will he back our solar industry and onshore wind—so devastated over the last nine years? Will he set out a credible plan to reach net zero?
I note that the climate change-denying US President has already labelled the Prime Minister “Britain Trump” and welcomed his commitment to work with Nigel Farage. Could “Britain Trump” take this opportunity to rule out once and for all our NHS being part of any trade deal—any trade deal—with President Trump and the USA? Will the Prime Minister make it clear that our national health service is not going to be sold to American healthcare companies? People fear that, far from wanting to “take back control”, the new Prime Minister would effectively make us a vassal state of Trump’s America.
Will the Prime Minister ask the new Foreign Secretary to prioritise the release of Nazanin Zaghari-Ratcliffe and is he working with European partners to restore the Iran nuclear deal and de-escalate tensions in the Gulf?
The challenge to end austerity, tackle inequality, resolve Brexit and tackle the climate emergency will define the new Prime Minister. Instead, we have a hard-right Cabinet staking everything on tax cuts for the few and a reckless race-to-the-bottom Brexit. He says he has “pluck and nerve and ambition”; our country does not need arm-waving bluster; we need competence, seriousness and, after a decade of divisive policies for the few, to focus for once on the interests of the many.
I struggled to discover a serious question in that, but I will make one important point that it is worth making: under no circumstances will we agree to any free trade deal that puts the NHS on the table. It is not for sale. I remind the right hon. Gentleman that for 44 of its 71 years of glorious existence, the NHS has benefited from Conservative policies and Conservative government, because we understand that unless we support wealth creation, unless we believe in British business, British enterprise and British industry, we will not have the funds; unless we have a strong economy, we will not be able to pay for a fantastic NHS. That is a lesson that the right hon. Gentleman simply does not get.
I struggled to see the country in the right hon. Gentleman’s description of the United Kingdom today. The reality is that unemployment is, of course, down under the Conservatives to the lowest level since the 1970s. Crime is down a third since 2010. We have record inward investment into this country of £1.3 trillion. We have fantastic new electric car factories—[Interruption.]
Order. Mr McDonald, you really are at times a reckless delinquent. Calm yourself, man. I know you get very irate because you feel passionately. I respect your passion, but I do not respect your delinquency. Calm yourself, man; take some sort of soothing medicament and you will feel better as a consequence.
They do not like the truth that more homes were built in this country last year than in any of the last 31 years bar one. Wages are now outperforming inflation for the first time in a decade. The living wage—a Conservative policy that I am proud to say I championed in London and that was then stolen by our wonderful Conservative Government and made into a national policy—has expanded the incomes of those who receive it by £4,500 since 2010. That is a fantastic achievement, and it is a Conservative achievement.
The right hon. Gentleman talks about trust and asks, “Who can you trust to run the Government?” How on earth? He asks about Iran—a right hon. Gentleman who has been paid by Press TV of Iran and who repeatedly sides with the mullahs of Tehran rather than our friends in the United States over what is happening in the Persian gulf. How incredible that we should even think of entrusting that gentleman with the stewardship of this country’s security.
Worse than that by far, this is a right hon. Gentleman who is set on an economic policy, together with the shadow Chancellor who was sacked by Ken Livingstone for being too left wing—[Interruption.] Quite rightly, he was sacked for fabricating a budget. He forged a budget—sacked for forging a budget. He would raise taxes on inheritance; he would raise taxes on pensions—[Interruption.] I am answering; I am telling you—[Interruption.]
Order. Mr Lavery, you are another over-excitable denizen of the House. Calm yourself; it would be therapeutic for you to do so. There is far too much noise on both sides of the House, and I fear that the noise on the Front Bench is proving contagious. I note that certain Back Benchers are becoming over-excitable. They must restrain themselves. I know that the Prime Minister will, of course, be both passionate and restrained.
It is only with an effort that I can master my feelings here, Mr Speaker. The right hon. Gentleman would not only put up taxes on inheritance, pensions and corporations; he would put up taxes on income to 50p in the pound. [Interruption.] There he is, the shadow Chancellor—the forger of the budget of 1984, Mr Speaker.
Give the Leader of the Opposition a chance and he would put up taxes not just on homes, but on gardens. He speaks about trust in our democracy. I have to say that a most extraordinary thing has just happened today. Did anybody notice? Did anybody notice the terrible metamorphosis that took place, like the final scene of “Invasion of the Bodysnatchers”? At last, this long-standing Eurosceptic, the right hon. Gentleman, has been captured. He has been jugulated—he has been reprogrammed by his hon. Friends. He has been turned now into a remainer! Of all the flip-flops that he has performed in his tergiversating career, that is the one for which I think he will pay the highest price.
It is this party now, this Government, who are clearly on the side of democracy in this country. It is this party that is on the side of the people who voted so overwhelmingly in 2016, and it is this party that will deliver the mandate that they gave to this Parliament—and which, by the way, this Parliament promised time and time and time again to deliver. Indeed, the right hon. Gentleman and all his colleagues promised to deliver it. The reality now is that we are the party of the people. We are the party of the many, and they are the party of the few. We will take this country forwards; they, Mr Speaker, would take it backwards.
I unreservedly welcome my right hon. Friend to his place. Today the EU will have listened and realised that the days of supplication are over and that we are intent on a policy to leave the European Union. I urge him in the course of his attempts at the Dispatch Box not to be too unkind to his opposite number. The right hon. Gentleman has not just become a remainer: over the last three and a half years, he has been trying to remain again and again and again, despite his own party’s determination.
In the process of my right hon. Friend’s preparation to leave without a deal, if that were necessary, could he now not allow us to do this in private? Could he instruct his right hon. Friend the Chancellor of the Duchy of Lancaster to do all this now in public—week by week, to tell the world, the European Union and our colleagues that we are nearly ready, and then finally that we are ready to leave, if necessary, without a deal?
I thank my right hon. Friend very much for that excellent question and the point that he makes. It is vital now that, as we prepare for a better deal, a new deal, we get ready, of course, for no deal—not that I think that that will be the outcome and not that I desire that outcome. But it is vital that we prepare business, industry and farming—every community in this country that needs the relevant advice. As my right hon. Friend has wisely suggested, there will be a very active and public campaign to do so.
Ian Blackford (Ross, Skye and Lochaber) (SNP)
I should welcome the Prime Minister to his place: the last Prime Minister of the United Kingdom. It is often said that the Prime Minister lives in a parallel universe—well, my goodness, that has been proven beyond any reasonable doubt this morning. In fact, it looked as if he was about to launch himself into outer space.
There are questions to be asked as to the mandate that the Prime Minister has for the office that he now occupies. He has been appointed not by this House, not by the people but by the Tory party. What have they done? It horrifies me that the new Prime Minister finds his position through such an undemocratic process. Indeed, it was the Prime Minister himself who called the system a “gigantic fraud” when Gordon Brown was parachuted into office, just like he was, 12 years ago. Scotland did not vote for Brexit, we did not vote for no deal, and we most certainly did not vote for this Prime Minister.
Will the Prime Minister accept the First Minister’s call this morning for an urgent meeting of the Heads of Government? Scottish Government analysis has shown that a no-deal Brexit will hit the economy hard, with a predicted 8% hit to GDP, threatening up to 100,000 Scottish jobs. Just this week alone, we have seen the International Monetary Fund, the Confederation of British Industry, the Trades Union Congress, the food and drink industry and the British Chambers of Commerce all warning of a no-deal Brexit. The Office for Budget Responsibility has revealed that a no-deal Brexit could lead to a plunge in the value of the pound and leave a £30 billion black hole in the public finances. What analysis has the Prime Minister made of no deal? When he was asked last week, he had no answer. He wants to drive us off the cliff edge and he does not even know the impact of the damage that will cause. This is the height of irresponsibility —economic madness driven by ideology—from the Prime Minister, supported by his new right-wing ideologues on the Front Bench.
A new deal from Europe is the stuff of fantasy. Time and again, Europe has made it clear that the withdrawal agreement is not open for negotiation. Last night, Leo Varadkar confirmed once again that it will not happen. The Prime Minister has no plan. He is full of bluster, but the consequences of his fantasy land will have devastating consequences. He is deluded. Let me warn the Prime Minister: if he tries to take Scotland and the United Kingdom out of the European Union on a no-deal basis, we will stop him doing so. This House will stop the Prime Minister. We will not let him do untold damage to the jobs and constituents of our country. Parliament will stop this madness in its tracks.
I thank the right hon. Gentleman for his suggestion. I should point out that the people of this country have voted in 2015, 2016 and 2017, and what they want to see is this Parliament delivering on the mandate that they gave us, including him. I take no criticism of my election from the party whose leader, Nicola Sturgeon, replaced Alex Salmond without a vote, as far as I know. Did she not?
The right hon. Gentleman is completely wrong in his analysis and his defeatism and pessimism about our wonderful United Kingdom, which he seeks to break up, because if we can deliver a fantastic, sensible and progressive Brexit, which I believe we can, and the whole United Kingdom comes out, as I know that it will, what happens then to the arguments of the Scottish nationalist party? Will they seriously continue to say that Scotland must join the euro independently? Will they seriously suggest that Scotland must submit to the entire panoply of EU law? Will they join Schengen? Is it really their commitment to hand back control of Scottish fisheries to Brussels, just after this country—this great United Kingdom—has taken back that fantastic resource? Is that really the policy of the Scottish nationalist party? I respectfully suggest to the right hon. Gentleman that that is not the basis on which to seek election in Scotland. We will win on a manifesto for the whole United Kingdom.
Our history is littered with Prime Ministers being dealt an extraordinarily difficult hand but, by pluck and determination, finally winning through in Europe. To make it possible, though, every MP has to realise that this is no longer a conscience issue. We have to learn to compromise and vote for something that may not be the perfect solution for us personally but is best for our nation.
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For our part, we will throw ourselves into these negotiations with the greatest energy and determination and in a spirit of friendship. I hope that the EU will be equally ready and will rethink its current refusal to make any changes to the withdrawal agreement. If it does not, we will of course have to leave the EU without an agreement under article 50. The UK is better prepared for that situation than many believe, but we are not as ready yet as we should be.
In the 98 days that remain to us, we must turbo-charge our preparations to ensure that there is as little disruption as possible to our national life, and I believe that is possible with the kind of national effort that the British people have made before and will make again. In these circumstances, we would of course have available the £39 billion in the withdrawal agreement to help deal with any consequences. I have today instructed the Chancellor of the Duchy of Lancaster to make these preparations his top priority. I have asked the Cabinet Secretary to mobilise the civil service to deliver this outcome, should it become necessary. The Chancellor has confirmed that all necessary funding will be made available—[Interruption]—£4.2 billion has already been allocated.
I will also ensure that preparing to leave the EU without an agreement under article 50 is not just about seeking to mitigate the challenges, but about grasping the opportunities. This is not just about technical preparations, vital though they are; it is about having a clear economic strategy for the UK in all scenarios—something that the Conservative party has always led the way on—and producing policies that will boost the competitiveness and productivity of our economy when we are free of EU regulations.
Indeed, we will begin right away on working to change the tax rules to provide extra incentives to invest in capital and research. We will now be accelerating the talks on those free trade deals, and we will prepare an economic package to boost British business and lengthen this country’s lead, which seems so bitterly resented by Opposition Members, as the No. 1 destination in this continent for overseas investment—a status that is made possible at least partly by the diversity, talent and skills of our workforce.
I therefore want to repeat unequivocally our guarantee to the 3.2 million EU nationals now living and working among us. I thank them for their contribution to our society and for their patience. I can assure them that under this Government they will have the absolute certainty of the right to live and remain.
I want to end by making clear my absolute commitment to the 31 October date for our exit. Our national participation in the European Union is coming to an end, and that reality needs to be recognised by all parties. Indeed, today there are very many brilliant UK officials trapped in meeting after meeting in Brussels and Luxembourg, when their talents could be better deployed in preparing to pioneer new free trade deals or promoting a truly global Britain. I want to start unshackling our officials to undertake this new mission right away, so we will not nominate a UK Commissioner for the new Commission taking office on 1 December—under no circumstances—although clearly that is not intended to stop the EU appointing a new Commission.
Today is the first day of a new approach that will end with our exit from the EU on 31 October. Then I hope that we can have a friendly and constructive relationship, as constitutional equals and as friend and partners in facing the challenges that lie ahead. I believe that is possible, and this Government will work to make it so. But we are not going to wait until 31 October to begin building the broader and bolder future that I have described; we are going to start right away by providing vital funding for our frontline public services, to deliver better healthcare, better education and more police on the streets.
I am committed to making sure that the NHS receives the funds that it deserves—the funds that were promised by the previous Government in June 2018—and these funds will go to the frontline as soon as possible. That will include urgent funding for 20 hospital upgrades and for winter readiness. I have asked officials to provide policy proposals for drastically reducing waiting times for GP appointments.
To address the rising tide of violent crime in our country, I have announced that there will be 20,000 extra police keeping us safe over the next three years, and I have asked my right hon. Friend the Home Secretary to ensure that this is treated as an absolute priority. We will give greater powers—powers resisted, by the way, by the Labour party—to the police to use stop and search to help tackle violent crime. I have also tasked officials to draw up proposals to ensure that in future those found guilty of the most serious sexual and violent offences are required to serve a custodial sentence that truly reflects the severity of their offence, and policy measures that will see a reduction in the number of prolific offenders.
On education, I have listened to the concerns of so many colleagues around the House, and we will increase the minimum level of per pupil funding in primary and secondary schools and return education funding to previous levels by the end of this Parliament.
We are committed to levelling up across every nation and region of the UK, providing support to towns and cities and closing the opportunity gap in our society. We will announce investment in vital infrastructure, full fibre roll-out, transport and housing that can improve the quality of people’s lives, fuel economic growth and provide opportunity.
Finally, we will also ensure that we continue to attract the best and brightest talent from around the world. No one believes more strongly than I do in the benefits of migration to our country, but I am clear that our immigration system must change. For years, politicians have promised the public an Australian-style points-based system, and today I will actually deliver on those promises: I will ask the Migration Advisory Committee to conduct a review of that system as the first step in a radical rewriting of our immigration system, and I am convinced that we can produce a system that the British people can have confidence in.
Over the past few years, too many people in this country feel that they have been told repeatedly and relentlessly what we cannot do. Since I was a child, I remember respectable authorities asserting that our time as a nation has passed and that we should be content with mediocrity and managed decline, and time and again—[Interruption.] They are the sceptics and doubters, my friends. Time and again, by their powers to innovate and adapt, the British people have shown the doubters wrong, and I believe that at this pivotal moment in our national story, we are going to prove the doubters wrong again, not just with positive thinking and a can-do attitude, important though they are, but with the help and the encouragement of a Government and a Cabinet who are bursting with ideas, ready to create change and determined to implement the policies we need to succeed as a nation: the greatest place to live, the greatest place to bring up a family, the greatest place to send your kids to school, the greatest place to set up a business or to invest, because we have the best transport and the cleanest environment and the best healthcare and the most compassionate approach to care of elderly people.
That is the mission of the Cabinet I have appointed, and that is the purpose of the Government I am leading. And that is why I believe that if we bend our sinews to the task now, there is every chance that in 2050, when I fully intend to be around, although not necessarily in this job, we will be able to look back on this period—this extraordinary period—as the beginning of a new golden age for our United Kingdom.
I commend this future to the House just as much as I commend this statement.
However, I do welcome the Prime Minister’s commitment finally to guarantee the rights of European Union citizens. It is a great shame that this offer has only been made now, more than three years after my party put that proposal before this House. Our friends, neighbours and family should never have been treated as bargaining chips, which has caused untold stress and worry to people who have worked so hard for this country and the communities that make it up.
Does the Prime Minister accept that, if he continues to pursue a reckless no deal, he will be directly flouting the expressed will of this Parliament? Industry, business and unions have been absolutely clear about the threat that that poses: no deal means no steel, no car industry, food prices dramatically rising and huge job losses. Make UK, representing much of manufacturing industry, says no deal would be
“the height of economic lunacy”.
Companies from Toyota to Asda have been clear about the dangers of no deal. Is the Prime Minister still guided by his “f*** business” policy? Those recklessly advocating no deal will not be the ones who lose out. The wealthy elite who fund him and his party will not lose their jobs, see their living standards cut or face higher food bills.
If the Prime Minister has confidence in his plan, once he has decided what it is, he should go back to the people with that plan. Labour will oppose any deal that fails to protect jobs— [Interruption.] We will oppose any deal that fails to protect jobs, workers’ rights or environmental protections. If he has the confidence to put that decision back to the people, we would, in those circumstances, campaign to remain.
The office of— [Interruption]
The Prime Minister was elected by 0.13% of the population. He has no mandate from Scotland. He has no mandate in this House. Scotland has had a Tory Government for whom it did not vote for 36 of the past 64 years. The Barnett formula that protects spending in Scotland has been criticised by the Prime Minister, the Home Secretary and the Foreign Secretary. Will the Prime Minister today rule out changing the Barnett formula, or is Scotland under attack from this Prime Minister?
The whole internal Tory party crisis has been a democratic outrage. Scotland’s First Minister has been clear that she is now reviewing the timetable for a second independence referendum. Scotland will not stand by and let decisions be taken by charlatans on our behalf. I ask the Prime Minister to do the honourable thing: call a general election and let the people of Scotland have their say.