What should the UK defence strategy be?

The government is engaged in an important defence review. It is tine indeed that we discussed what threats our nation faces, how we should protect ourselves, and what contribution we should make to NATO and the UN. Listening to many experts in this field I am struck by the extent of muddled and jargon laden thinking that passes for strategy.

Let me this morning suggest three roles for our defence establishment to carry out.

The first overriding requirement is to concentrate sufficient force in the UK so that no power would consider mounting a seaborne or airborne invasion. Whilst there is currently no enemy in sight who would seek to do that, history warns us that is the ultimate danger. France carried out one successful invasion in 1066 and failed in the early nineteenth century. Spain failed in 1588 and Germany failed in 1940. he Dutch succeeded by agreement with the powers that be in GB in 1688.

The second requirement is to make our contribution to NATO, and to work with NATO to act as a credible deterrent to aggression towards any NATO member.

The third requirement is to have an expeditionary ability so that we can contribute to UN tasks around the world, and can help defend our own friends and associated territories.

Much of modern thinking is based on collaboration and mutual dependence with allies. History reminds us that we have not always been able to rely on allies. We needed to have our own forces to recapture the Falklands, as allies did not agree with expelling the invader by force. In 1940 we had to stand alone against Germany. This suggests to me that when it comes to defending these islands we need to have the ships and planes in our own military that could do the job.

I will turn to a more detailed consideration later, along with thoughts on countering cyber attacks and modern asymmetric conflicts with terrorism.

Letter from the Treasury on Equitable Life

31st October 2015

EQUITABLE LIFE PAYMENT SCHEME

I know that the progress of the Equitable Life Payment Scheme (“the Scheme”) is of interest to colleagues, so I am writing to you today to update you.

As at 30 September 2015, the Equitable Life Payment Scheme has now issued payments of nearly £1.08 billion to 915,453 policyholders. This means the Scheme has now paid 88% of eligible policyholders, and 92.9% of the money due. The Scheme has published a further progress report, which can be found at www.gov.uk/equitable-life-payment-scheme.

The Scheme has made major efforts have to trace policyholders, including extensive electronic tracing methods, writing to policyholders’ last known addresses, a national advertising campaign, working with other government departments and liaising with group scheme trustees. As announced at the Summer Budget, a final attempt to trace policyholders has been made through the Department for Work and Pensions (DWP) by the DWP sending letters to all untraced policyholders due £50 or more for whom the Scheme holds a National Insurance number and other data such as their name. These letters have now been sent. Despite this there remain approximately 125,000 policyholders whom the Scheme has been unable to pay.

As the Chancellor announced in the Summer Budget on 8 July, the Scheme will be closing to new claims on 31 December 2015. Any policyholders who still believe themselves to be eligible are encouraged to call the Scheme on 0300 0200 150 before 31st December 2015. The Scheme can verify the identity of most policyholders on the telephone, which means any payment due can usually be received within 2 weeks. This will not affect the yearly payments made by the Scheme to With-Profits Annuitants, which will continue for the duration of those annuities. The Scheme has written to all With-Profits Annuitants to make them aware of this.

In the Summer Budget, the Chancellor also announced that payments to non-With Profit Annuitant policyholders who receive Pension Credit will be doubled. Any policyholders who have made a claim from the Scheme by the time it closes on 31 December and are receiving Pension Credit on that date will receive this second payment without having to take any action. Policyholders can check their eligibility for Pension Credit using the Government’s Pension Credit calculator at http://www.gov.uk/pension-credit-calculator.

I hope this information is of use to you and your constituents.

HARRIET BALDWIN

No UK bombing of Syria

This week the Commons Foreign Affairs Committee published a good report. They concluded that UK bombing in Syria would not be a good idea. They recommended diplomatic intervention and the start of a difficult peace process.

Meanwhile the international community is edging towards a similar conclusion. The long war has shown that the main combatants are unable to win. The Assad regime has killed many of its own citizens but still cannot exert its control over large parts of the country. ISIL has limited forces on the ground terrorising locals into acquiescence. The Kurds have established some presence in the north but do not wish to extend their military power over the whole country, recognising this would be impossible and undesirable. Other opposition forces have also proved unable even with western assistance to forge a winning force.

Peace talks will be far from easy. There are several important regional powers to involve as well as the USA and Russia. Many of those interested and powerful in the region do not have a preferred outcome for a new Syria which is feasible. Anyone seeking to rule the whole of Syria has to have great powers of persuasion that they can be fair to different religious and ethnic groupings in the country.

Many in Parliament have decided that Syria is not short of bombs and violence. The UK would not be able or willing to make a large contribution to any western alliance intervention. The West’s Commander in Chief, the US President, is uncertain about committing much force to this continuous civil war. I am glad the PM continues to say he would only bring a proposal to bomb Syria to the Commons if there were a consensus in favour of such action. As the Select Committee has just demonstrated, there is no such consensus.

Will no-one defend the Euro?

When I was working with the BBC on the Analysis programme about single currencies (to be broadcast again on Sunday at 9.30pm), I could find no-one well known in the UK political world to defend the Euro. The BBC asked on my behalf various senior Labour and Liberal Democrat politicians to come on the programme. They explained that we were looking for someone who would either defend the Euro as it is currently structured, or who would say what reforms they thought the EU should make to create their ideal Euro. These were not trick questions. It was not an invitation to an unfair or unpleasant party political debate. It was a chance for a well know EU enthusiast UK politician to tell us what they like about the modern Euro.

Their refusal sums up all that is wrong about the EU debate in the UK. There are no well known advocate who will ever come on and make an honest case for the UK being properly involved in the complete and true European project. There was not even anyone prepared to defend what much of the rest of the EU wishes to do together without us. As the Euro is now at the heart of the EU project it is difficult to keep defending the EU without acknowledging the prime role of the Euro and at least arguing it is right for those in it. They will not acknowledge that you need to belong to the Euro if you are part of the aims and ambitions of the EU. They do not wish to talk about political union, though it is a major topic for our partners. Some go so far as to deny that ever closer union means just that, and confine themselves to saying we are not going to join the Euro. They of course wanted to do just that not so long ago.

Many of the defenders of the EU are also strong critics of austerity policies who believe in large state transfer payments. It is curious that they lose their principles and their tongue when it comes to the harsh austerity policies visited on Greece, Spain, Portugal and others as part of their Euro discipline. It is also curious that there are few voices of condemnation of the mass unemployment and the high youth unemployment in the south of the EU, and no remedies ventured within EU and Euro rules on how to right those wrongs.

I tried again in the Commons yesterday to encourage the parties who favour our continued unchanged membership of the EU to defend the institutions of the EU and the policies being followed in the Eurozone. No-one even tried.

You can listen to ‘Currencies and Countries’ here: http://www.bbc.co.uk/programmes/b06mcfdp.

Do single currencies need political unions? Radio 4

I have worked with Radio 4 Analysis to produce a half hour programme arguing that a successful single currency needs a country to love and back it. This will be transmitted at 9.30 pm on Sunday 8th November. It is also already available on to listen to through the BBC Radio 4 Analysis part of the BBC website.

A single market is not a free market

160 countries around the world are not members of the EU but they are able to trade quite successfully with EU member countries. The main aim of the Stay in campaign is to terrify UK voters into thinking if we leave we uniquely will be unable to sell into the EU single market. Those who like Europe are so unpleasant about our partners in Europe as to think they will spite us on exit. It’s a strange paradox that those of us who wish to leave think more kindly of Germany and France than those who wish to stay.

As I have often pointed out, we are more customer than supplier as we buy more than we sell to the rest of the EU. As such Germany and France will want to keep our trade. As they will wish to continue with favourable ways to our market, they will not be looking for ways to stifle our exports, as we could simply impose the same restrictions on them.

The problem with the Single market is it is not a free market. The UK would like a free trade agreement with the rest of the EU, but that is not on offer if we stay in. Instead we have to pay large dues to the club and accept an extraordinary range of rules and restrictions on what we can do. We are told we have influence over these, yet history shows that we have lost many arguments. Our belief that we need fewer EU rules and regulations gets lost in the passion to drive through yet more agreements and directives.

Out of the EU there would be one huge improvement. All the rules and regulations we have to impose on all our business and trade would only have to remain on those goods and services we supply to the EU. Domestic activity and exports to non EU countries would no longer have to be under those same rules. At one bound we could be free for all but the 12% or so of our GDP that depends on sales to the rest of the EU, whilst that would have the same rules as today.

It is a nonsense to say that outside the EU we would be on the end of a facs telling us how to behave. As a supplier to the US, China, India or the EU we of course need to respond to what the customer wants. At the moment we are at the end of facs having to accept all the rules and regulations of an overregulated market and impose them on everything else. That is what we can free ourselves from.

Unfortunately the EEC/EU was never just a common market. It was always a journey to political union. Now it is becoming a wild ride it is becoming increasingly obvious that this is no market, but an excuse to create a government of the EU.

A German led Europe

One of the most notable features of the modern EU is the growing dominance of Germany in its deliberations. This is inevitable as the Euro and the freedom of movement of peoples become central and often all consuming issues. Germany is the paymaster of the Euro and the generator of many of the jobs on the continent that people wish to move to.

UK commentators and media take too little interest in the German philosophy and policy towards the EU. It is critical if we wish to understand why the EU is as it is, and as we assess whether it is the right club for us.

Some say the Germans want similar things to us. This is completely false. It arises because the Germans do want a strong single market, as somewhere to sell their exports and keep their factories in work. However, they want a single market subject to iron disciplines laid down in Germany’s interest. Germans see the Euro as a necessary part of the single market. They see the UK’s absence from the Euro as a temporary and unfortunate delay in getting us inside it. They do not think the UK or any other country in the single market should be free to vary its exchange rate. Having locked themselves into the Euro at a very favourable rate for Germany, they want to preserve that and keep the trade surpluses it allows them to generate.

Germany thinks that having locked most countries into the Euro it is up to the others to struggle to keep up with German levels of efficiency and cost. If another country like Greece or Ireland cannot compete, then it should cut wages to price itself back in. If a country needs to borrow more than the permitted amounts under the EU scheme, they should cut their public spending or put up taxes instead.

Germany is coming round to the view that the EU’s future is for some additional EU taxes like the transactions tax, and in due course some additional EU borrowing. In the meantime they want to see more discipline, and want to see the UK join the Euro and have to face what the others face.To them a single market is a strong set of rules, usually favouring the incumbent large companies. The rules can make it more difficult to innovate and for challengers to compete. They tend not to like “disruptive” competition, but orderly competition to agreed prior designs and standards.

Germany is willing to take some migrants because she is short of new people for the workforce. However, Germany now realises freedom of movement is delivering too many additional people to Germany. Rather than change the policy of free movement, Germany believes other countries should be made to take more migrants instead. Germany does not think the UK should opt out from this either.

The UK’s problem is a membership based on opt outs is counter to the German view. In the longer run the Germans and their allies in the EU will wish to squeeze out or circumvent the UK’s refusal to join in all features of the discipline. As the main continental paymasters of the scheme Germany will continue to exercise disproportionate power in this club of 28 with just one permanent leader. The UK was not a founder member and has found it difficult to control the number of rules or to prevent rules which are unhelpful to smaller competing businesses.

Currency unions – Oxford lecture

On Friday 13th November I will give a lecture on currency unions, comparing in particular the sterling union and the Euro. The lecture will consider the moves to greater political union in the Euro area, and the position of the UK in the EU but not in the Euro. It will also look at the extent of taxation and transfers within the sterling currency area, consider the new financial settlement for Scotland whilst staying in the pound, and discuss the wider strength of nationalist movements within EU countries. It will also tackle the needs of England.

The lecture is an open public lecture to be held in the Old Library at All Souls College, High Street, Oxford. There should be seats for those wishing to attend. It would be helpful to have indications of interest in advance to give us some idea of numbers. The lecture is scheduled for 4pm.

Health troubles

The junior doctors and NHS management are locked in a struggle over hours, pay and productivity. The doctors complain that they will have to work week-ends and longer hours for less money. The NHS seeks to assure that the proposals do not include wage cuts or unreasonable hours.

At the heart of the row is the government’s wish to see better care at week-ends. People who fall ill or injure themselves at week-ends need good quality care there and then. The figures show that cover is not so good at week-ends, and the outcomes from treatment and surgery are not so good as a result. The aim of the reforms is to have a better balance of medical talent available throughout the week, as well as making sure there are enough doctors and nurses. The  government points out it has recruited more over the last five years, and will doubtless appoint more over the next five. The NHS budget continues to grow.

Mr Hunt is a patient and thoughtful Secretary of State driven by a wish to improve the NHS and to reinforce its best instincts and professional conducts.He has introduced a system of honest reporting  in the NHS, arguing that air safety improved when pilots and crew had to report every incident or near miss so the airline could learn from it and manage the error out of future flights or engineering. The  same is a necessary part of delivering first class health care. When people make mistakes they need to be reported, and improvements made to protocols, procedures and equipment.

 

Secretary of State for Health explain doctors contracts and 7 day working

29th October 2015

RE: Junior Doctors’ Contract – not a single junior doctor will see their pay cut compared to their current contract

As you know, this Government was elected on a mandate to deliver a 7-day NHS and ensure NHS care is the same quality across the week.

Independent research published in the British Medical Journal is clear that there are 11,000 excess deaths in our hospitals every year – the ‘weekend effect’. We are determined to change this by ensuring that hospitals can staff their hospitals properly 7 days a week to ensure that patients get the care they need whenever they fall ill. There’s a significant body of academic and clinical evidence backing this up.

  • Professor Sir Bruce Keogh, the NHS Medical Director, has said there is a ‘weekend effect which if addressed could save lives’.
  •  The BMJ published study found that patients admitted on a Sunday have a 15% greater risk of mortality compared to those admitted on Wednesday. The authors said this ‘raises challenging questions about reduced service provision at weekends’.
  • A 2012 study – Freemantle et el – found that the day of admission was associated with increased risk of death in seven of the ten most common clinical conditions. Patients admitted on a Sunday with renal failure, for example, had a 37% greater risk of death compared with those admitted on a Wednesday.
  • The Academy of Medical Royal Colleges said in 2012 that the weekend effect was very likely to be attributable to deficiencies in care processes because of a lack of skilled senior staff and a system that doesn’t provide full diagnostic and support services 7 days.
  •  In 2010, Aylin et al found that mortality rates are higher for patients admitted at weekends compared to weekdays.

Changing this means reforming contracts – put in place by Labour – for junior doctors in 2000 and for consultants in 2003. Yesterday in the Commons, I gave a guarantee on behalf of the Government that not a single junior doctor will see their pay cut compared to their current contract. This was actually a deal I said to the British Medical Association I hoped we could reach by negotiated settlement back in September – but sadly instead they chose to whip up fear amongst junior doctors.

You’ll have seen that the doctors’ union, the BMA, has been misleading its members in saying junior doctors will get pay cuts of 30 per cent, and be forced to work longer hours. As I have made very clear, the opposite is true, and in fact we are offering a better deal for doctors that allows us to deliver an NHS that provides the same excellent quality of care every day of the week. In summary, we want

  • The same pay for junior doctors as they receive under their current contracts;
  • Shorter hours, with a reduction in the maximum number of hours that can be worked in any one week;
  • An end to unsafe working.

I have already given the BMA firm assurances on the junior doctors’ contract in advance of the Government’s formal proposal, which still stand. I’ll be setting out more detail in the coming days, but – as the BMA themselves have admitted – the best deal will be reached by negotiation, so we continue to urge the Junior Doctors’ Committee to come back to the table. Many independent and clinical voices are doing the same – including the Royal College of Surgeons, the Royal College of Emergency Medicine, the Academy of Medical Royal Colleges and NHS Providers.

  • Firstly, this is not a cost cutting exercise. We are not seeking to save a penny from the junior doctors’ pay bill.
  • Secondly, I want the new contract to improve patient safety by better supporting a seven day NHS. For junior doctors, this means some increase in hours which aren’t payable as overtime, but backed up with a significant increase in basic pay. We will still pay staff for antisocial hours, junior doctors will get the same pay on average, and we want to discuss from when on a Saturday overtime is payable.
  • Thirdly, I believe that our ambition for the NHS to be the safest health care system in the world is underpinned by reducing, not increasing, the number of hours junior doctors work each week. Junior doctors already work seven days and are the backbone of medical care in hospitals at weekends and at night. There is no question that thiirdly, I believe that our ambition for the NHS to be the safest health care system in the world is underpinned by reducing, not increasing, the number of hours junior doctors work each week. Junior doctors already work seven days and are the backbone of medical care in hospitals at weekends and at nis contract will impose longer hours. In fact, it is the current contract which provides a perverse incentive for juniors to work unsafe hours by paying those who breach safe hours up to 100% of their basic pay.
  • Finally, I can now give an absolute guarantee that no-one will lose out compared to their current contract. I have already given the BMA my assurances there will be pay protection for doctors who change to shortage specialities and to support agreed academic work.

The negotiations on the new contract began on the basis of a shared view between the BMA and the Government that the current contract had served its purpose and needed reform. In fact, the BMA accepted that point as far back as 2007.

We are absolutely clear that – as well as being better for patients – this is a fairer deal for doctors. The new contract will mean no junior is required to work more than an average of 48 hours per week, with tougher limits on unsafe hours including a new maximum working week of 72 hours, and a new maximum shift pattern of four consecutive night shifts and five long day shifts, compared with the current contract which permits more than 90 hours a week, 7 consecutive night shifts and 6 long day shifts. It will also better reward pay progression based on achievement and experience.

Finally, there’s a broader lesson from Labour’s time in Government we’re determined to learn. They didn’t take action to address shockingly poor care – and patients at Mid Staffs, Morecambe Bay, Basildon, Tameside and several other hospitals suffered as a result. Since, our tough new special measures process is turning places where care is poor around. We will continue to focus on that – and must never again allow academic debates on the statistical methodology around mortality rates to become a substitute for action to prevent human tragedies unfolding.

Rt. Hon. Jeremy Hunt MP
Secretary of State for Health