John Redwood's Diary
Incisive and topical campaigns and commentary on today's issues and tomorrow's problems. Promoted by John Redwood 152 Grosvenor Road SW1V 3JL

Anyone submitting a comment to this site is giving their permission for it to be published here along with the name and identifiers they have submitted.

The moderator reserves the sole right to decide whether to publish or not.

75 Brexit benefits – a great new book by Gully Foyle

Gully Foyle    75 Brexit benefits     Available now on Amazon.   Foreword by myself.
This is a welcome treasure trove of  Brexit benefits which the  mainstream media have preferred to ignore or play down. The author sets out how as an independent country we  can improve  things  for ourselves. We can change our laws, cut our taxes, extend our trade deals, take down tariffs, get our seat back on  the leading world institutions where the EU displaced us. The 75 benefits are all good.  Brexiteers feel let down that successive governments gave away so much in the Withdrawal negotiations and then failed to use many of the freedoms we have now regained.  Nonetheless Brexit is still a great victory for the majority against the governing elites. Our Parliament can now use our sovereign powers to make things better. This government’s failure to do so lies behind its collapse in support.
The government’s attempted “re set” is turning out to be a series of embarrassing climbdowns, sacrificing our powers in a way which will  make things worse. As the country clamours for fewer migrants, the government takes up the EU demand to give more access for younger people into the UK under a scheme likely to prove even more lopsided than Erasmus. That scheme made UK taxpayers pay for many more EU students coming to the UK than UK students wishing to go to  the rest of the  EU. A desperate Chancellor argues more younger people coming in from the EU would boost our growth. She should look at growth in income per head, which would be lowered by inviting in yet more people to low pay jobs and no jobs, and their dependents. The OBR should have none of it as a positive when making their forecasts. The EU always did and always will mean more UK costs for taxpayers to meet, slower growth and more regulation.
Remain said that if we left the UK would be marginalised and less powerful in the world. At the time of the vote in 2016 the UK was the third ranked country for soft power in the world. Today we are still in third place after Brexit.  More importantly we are still third despite the rise of China to second place because Germany has fallen well behind us into fifth. So the UK outside the EU is ranked more highly than the EU’s largest country, which when we were in the EU was thought more influential than us. That looks like a Brexit win.
Gully Foyle has done a magnificent job showing in detailed accounts just how many things we have already improved, many from avoiding new laws and charges from a power grabbing EU.  He puts the wins under seven heads. There are the money savings on our membership fee and lost tax revenues. There is independence to have our own fishing, farming and animal welfare policies. There is more trade through the large extra trade deals we have been able to sign. Our service exports have roared ahead.  We can decide on our own laws. We have used more flexibility in financial markets to grow our worldwide business. We can control our own border and have greatly reduced legal migration from the EU. Governments have failed to suspend European human rights law to grip the issue of illegal arrivals though they are free to do that.  We have improved our position in defence and our world standing.
The financial wins are large. There is the saving of £12-16 bn a year from our annual subscription, soon to be much increased by the EU as they expand their spending and borrowing.
Many of us want to treat animals well. Out of the EU we have been able to strengthen the law on animal testing. We have banned the export of live animals. We have  banned cruel ways of making foie gras and  the fur trade. These were not possible in the EU. We want a good environmental policy. Out of the EU we have been able to remove VAT from  green products like insulation materials and we can ban the sand eel fishery which is damaging our marine environment.
The  UK has left a customs union which made us impose high tariffs on goods we import from non EU sources, imposing large taxes on UK consumers. This was particularly harmful where we could not grow or make the things at home. The UK has signed important new trade deals with the Trans Pacific Partnership and India. We have removed  smaller tariffs,  tariffs on intermediates needed for our manufacturing, and on goods we cannot produce or grow for ourselves. There are still more tariffs we can and should remove. Why shaft UK consumers as the EU did?
What we need is a government prepared to use our powers to stop the flow of illegal and low pay/no pay migrants, to cut taxes, avoid more carbon taxes and tariffs, get rid of anti business laws and reject EU laws than create dear energy and restrict hi tech investment. All this is now possible, out of the EU.
Everyone interested in the future of our country and the detail of our relationship with the EU should read this book. For too long the mainstream media and the Remain politicians and officials have trotted out false soundbites. Some of these are  based on old wrong predictions to suggest Brexit was a bad idea. As this book shows, we already have some good wins and could have so many more if we put our mind to it. To date most of the wins have been avoiding new laws and taxes the EU is imposing on its members. We could have more and bigger wins if we got on with the job of dismantling the bad taxes and laws we were made to adopt.

The text of my Express article on digital ID

A state run digital ID is the last thing the government should be worrying about and spending our money on. It was not in their Manifesto and there is no surge of requests for such a new intrusion into our lives.
       We want the government to keep their promise  to smash the gangs. Requiring law abiding people already here to have digital IDs will not stop criminals ignoring the rules and living a life of crime . People in Northern France are not going to say if we  have digital ID they  will not come.  They are already coming here illegally and getting jobs for cash, showing they are happy to break the rules.  The law abiding  already have  a National Insurance number, a driving licence, a passport to travel and  benefits and pensions accounts but they do not stop the illegals. They prefer to come with no ID and then get access to UK services and accommodation which we grant them.
       Presumably new arrivals on the boats would be issued with their own digital ID anyway. They can still make up their history if we allow people to stay here who have destroyed or lost their passports . They can tell us  what needs saying to qualify for whatever the rules require for  admission.
       Some say it will help the police track down illegals on the streets.  If we  are all  required to carry digital ID with us and can be stopped to find out who we are  there will be plenty of hard cases where someone’s mobile phone has no battery charge or has been temporarily mislaid or left at home. Criminals asked to produce digital ID can always think of a reason why not, promise to attend a police station later, and go missing. Some will have good fabricated ID.
        When it comes to illegal working the government has an enforcement problem, not an ID problem. Everyone legally here and wanting to work has a unique National Insurance Number. No-one is meant to get a job without declaring their number and paying National Insurance where due. The state has the powers to prosecute employers who break these rules. Why would it be any different if instead of needing an NI number you needed a digital ID? There would still be rogue employers who need uncovering and charging.
         Government handling of large computer schemes should leave Ministers nervous and the public worried. The Post Office spent a fortune of taxpayers money on a computer system that sent some of their best people to jail on false allegations. The NHS has spent much money on new systems for booking appointments and keeping in touch with patients, often making  it more difficult to get a meeting with a GP. Pity the taxpayer with a project on this scale.
           The digital ID is a solution in search of a problem to solve. It is a hammer to our freedoms  missing  the nails of illegal migration and street crime. The government will find there is plenty of opposition as it uses this distraction to try to divert attention away from their failure to smash the gangs and to grow the economy

Child poverty is parent poverty – we need the right diagnosis to find a cure

Let me make clear I share the left’s aim that no child should lack good food, clothing, a warm bedroom and a good school. Each child usually gets that because they have the even more important asset of loving parents who will provide for them. Provision of the basics need backing up with love and support, to help the child achieve their best and get some fun out of life.

UK policy rightly seeks to keep most children under the care of their parents. The state only takes the difficult decision to take over responsibility for the child in extreme cases where the parents have shown they are not willing or able to provide, and especially where they are a direct threat to the child from neglect and violence. The state is a better substitute than such parents, but the outcomes for children in  state care are often worse than the average of children brought up by their parents. The state cannot supply the love, continuous support  and warmth of a normal mother or father.

Practically all UK children have no money or very little money, as they cannot take paid employment and are not trusted with substantial sums by their parents. Tackling  child poverty does not mean giving money to the children to provide for their housing, food and entertainments. It means ensuring the parents have enough money to pay for their children’s food, clothing, accommodation and other costs. So to resolve the difficulties we need to study parent or family poverty.

The hard cases are where the parents do have the money but treat the children badly and do not spend enough of the family income on the children. These are a small minority, and result in difficult cases over whether the children need to be taken into care.

Most cases of family poverty are cases of the family income being too low for all the demands upon it. Some are from bad budgeting and spending priorities made by the parents. The idea of the two child cap was to say to parents on low or no income that they need to limit family size to avoid more pressures on the family budget. Most  working parents on higher incomes do limit the size of the families they have to one or two children because they recognise they cannot afford more or they do not have the accommodation they would need for a larger family. The benefit system recognises that people can have children by accident, or can have a family of one or two and then fall on hard times, so they deserve full  benefit support for themselves and their children.

The main policy we need to tackle child poverty is the policy of promoting work for more people. Family poverty is concentrated in the group of people who do not have jobs at all, who have to rely on benefits. The second important policy is to promote better paid work to tackle those who are in jobs but whose income is too low to meet all the family needs.

The government says it shares these two aims, which should be the core of any policy to tackle family poverty. The way to help more people into jobs was successfully implemented by the last government, making big reductions in unemployment. It has been well set out by the Centre for Social Justice and by Iain Duncan Smith who pioneered Universal Credit to make sure it would always be worthwhile for people to get a job.

To get wages up we need much tougher restrictions on inward migration to stop the flow of people to take low paid jobs from abroad and to depress pay rates. We need growth policies as set out on this website to encourage more investment in technology and training to support people into more productive  jobs. Helping people get more skills and promotions boosts their incomes. Raising UK productivity allows higher real wages to be paid.

Should NATO shoot down Russian planes? Should the UK shoot down Russian planes?

If NATO escalates with Russia and starts shooting down her planes it has to be ready to fight a full war. It may well be that Putin  the bully backs off, but it is a risk.  I’ve little doubt NATO would in the end win such a war, but there is also no doubt there would  be massive loss of life and damage before victory was secured. I am certainly against the UK on her own shooting down a stray Russian plane provoking NATO somewhere over NATO’s eastern border. There is no need for us  to take such a risk.

Given the structure of NATO any NATO member would be ill advised to take the risk without being  sure the US would commit her forces to any resulting fight. If Putin thought the US would not turn up he might well call European NATO’s bluff. In the end the European powers could defeat Russia, but it would take time to get the economies onto a war footing and to get anything like the scale of army and weaponry Russia has already committed to Ukraine. If the US backed the shooting down then there is much reason to suppose Putin would back away.

The immediate response to Russia should be as it always has been to provocative intrusion into our waters and airspace. Put force alongside them and make clear they could be destroyed if they showed more evidence of ill intent.

The UK should concentrate on defending its own airspace and the seas around our islands. History taught us in 1914 and 1939-41 that we could not rely on the US to come to our aid on the battlefield. The US only entered the second world war after much reluctance by US voters because Japan stupidly attacked the US fleet forcing the US into the war. In the post war world of NATO the US and other allies did not come to our military assistance to defeat the illegal invasion of the Falkland islands by Argentina. It was outside the NATO area but that need not have stopped them helping us. We needed our own forces, and just had enough to do the job thanks to their skill and bravery.

The priorities for our increased defence spending must be an Iron Dome over the UK islands to protect us from incoming drones, missiles and planes. It must include enhanced cyber capabilities and much larger and more diverse drone squadrons. It should  include enough submarines and support vessels for our two carriers to be able to police our home waters and have expeditionary capability beyond. It also needs a larger army.

Can NATO require the UK to shoot down a Russian plane?

There is much misunderstanding on this side of the Atlantic about the nature of NATO membership. NATO fully respects the sovereignty of each member. Unlike the EU it does not require members to do anything they do not wish to do, and has no legal powers to enforce its policies. Many Europeans think that because the Treaty says an attack on any one is also an attack on the rest the US would automatically come to their aid and fight their war for them. This faux pas has led  many European countries to  provide insufficiently for their own defence whilst sheltering under the US umbrella.

Article 1 favours NATO members finding peaceful means to settle disputes and warns against them using any threat of collective force in international relations that the UN would not approve. The crucial Article 3, much forgotten, urges each member to build up their own individual defence capacity.

Article 3

“In order more effectively to achieve the objectives of this Treaty, the Parties, separately and jointly, by means of continuous and effective self-help and mutual aid, will maintain and develop their individual and collective capacity to resist armed attack.”

The better known Article 5 does indeed says an attack on one is an attack on all, but it goes on to make clear that does not require all to respond by declaring war on the aggressor and joining the battles.

Article 5

“The Parties agree that an armed attack against one or more of them in Europe or North America shall be considered an attack against them all and consequently they agree that, if such an armed attack occurs, each of them, in exercise of the right of individual or collective self-defence recognised by Article 51 of the Charter of the United Nations, will assist the Party or Parties so attacked by taking forthwith, individually and in concert with the other Parties, such action as it deems necessary, including the use of armed force, to restore and maintain the security of the North Atlantic area.

Any such armed attack and all measures taken as a result thereof shall immediately be reported to the Security Council. Such measures shall be terminated when the Security Council has taken the measures necessary to restore and maintain international peace and security .”

In other words whilst NATO can ask each nation to join in a war, each state can decide instead to simply issue a condemnatory statement, impose sanctions, or seek diplomatic redress as it sees fit.

With the US spending around two thirds  of NATO’s  budget and supplying a higher proportion  of the fighting resources the other members are right to be concerned about committing NATO to any action where the US may decide to exercise its right not to contribute. The European members are now increasing their spend .  President Trump has been insisting that European members of NATO make a much enlarged contribution to their own defence, as he wishes the US to be less committed to the defence of Europe. So far most of the countries have not made much increase in their capabilities and are very dependent on US heavy lift, air cover, missile protection and the rest. President Trump thinks they need to be spending 5% of the their GDP on defence whilst most have only just got to 2%.

I will consider tomorrow whether the UK  should be willing to shoot down a Russian plane. The context for the decision should be a cautious approach as Poland, Germany and the other eastern members of NATO are much better placed to respond to daily testing of the eastern borders of NATO adjacent to Russia. It would be more normal to intercept and  conduct the Russian plane out of the area. The UK should concentrate on using its current resources to respond to any Russian drone/missile or aircraft intrusion into our airspace which we are much better placed to do from our own airfields and installations. Our usual practice is to intercept and conduct Russian planes out of our airspace promptly, which is a measured response.

 

 

The OECD forecasts the UK will not hit its economic targets.

Time was when in Opposition Labour went to town on Conservative economic policy if the IMF, OECD, World Bank or OBR made a bad forecast for the UK. They treated it as if it were the outcome and blamed the government. Sometimes the forecasts were obviously wrong but it  was lese majeste  to claim to know better than a world body.

Scroll on to yesterday. The OECD said UK inflation will remain high by G20 standards- probably right. UK growth will be disappointing this year and next but a bit higher in 2027- could be optimistic about  2027. What was the Chancellor’s response? The UK was doing better because of a small upward revision for growth this year. .She ignored the  worse forecasts for inflation and growth next year. She did not announce any reduction in her targets which on OECD forecasts she will miss.

I have no problem with her disagreeing with the OECD but only if there is good reason to find them wrong. When I look at all the policies she is pursuing, as I explained before and when they were introduced, the policies are bound  to increase costs and prices and to reduce output and growth. So why expect a better outcome?

Higher taxes on business and jobs  destroy work and growth. Large public sector pay awards with no productivity clauses raise costs and increase state borrowing . Selling bonds at a loss and sending the taxpayer the bill contracts credit and private sector activity. Stopping grants to farmers and taxing family farms means less UK food production. Buying renewable electricity at high guaranteed prices with subsidies keeps energy prices high and closes factories.Bans on new oil and gas an on petrol car manufacture literally destroy potential output. And the rest I have set out many times.

How does she think she will get extra growth?  1 From a housebuilding boom with a 50% increase in output. So far with a quarter of this Parliament gone despite her planning changes housing starts are down, making it all but impossible  to hit the 5 year target. We were not short of permissions but short of builders and buyers. 2 From increased public investment which is now constrained by fiscal rules and a shortage of oven ready good projects.  3  From green jobs which turn out to be mainly in China as we import their  solar panels, batteries and turbines.

There is no workable growth plan. If she goes for another budget of more spending in an overmanned public  sector and yet higher taxes on wealth creators, property and business it could be the OECD are wrong again by being too optimistic.

 

Why is there no UK government will to stop mass migration?

The government says it will smash the gangs, stop the small boats. It says it understands the public expects it to carry out this promise. They say they get it that taxpayers are fed up with having to pay more and more taxes to house illegal migrants in hotels. So why do they not do whatever it takes to end this vile trade?

Why did the government repeal the important change to the law the last government passed belatedly, to prevent any illegal migrant from claiming asylum in this country? If they had got on and implemented that Act of Parliament  the main reason for many coming here by small boat would have been removed.  Will they reinstate it?

Will they take up the Conservative amendments to the government’s   recent Immigration  legislation which would remove European Human Rights and UN Convention considerations from any court case people tried to bring about an immigration matter? We should rely on fair UK law that should be geared to stopping the gangs, not encouraging them.

Why does the government not require the authorities to arrest and interview every illegal arrival, asking them to say who they paid for their journey, how they found out about their trip, which was the boat driver for their passage? That would speed smashing the gangs. The boat drivers should all be prosecuted.

Why does the government not require the confiscation of all mobile phones of the illegal arrivals, so they can be examined to find evidence against the people traffickers?

Why does the government carry on paying large sums to France when they fail to stop small boats leaving their beaches and rivers? It must be easiest to stop the small boats before they are in deep water away from shore. We should not  pay for French  failure to police these crimes.

Why does the government pay France to facilitate the French sending escort vessels out to help the small boats undertake dangerous crossing instead of stopping them leaving safer coastal waters?

Why does the government let it be known that illegals will be given a place in a good hotel or will be given priority for housing in  the community if they arrive here? People are not just cross about the use of hotels as the government admits, but about illegals taking scarce subsidised  housing we need for people already legally settled here.

Why does the state order Border Force vessels to meet all the illegal boats  mid channel and undertake the dangerous task of transferring their passengers to a Border Force vessel? If we know that much about these journeys why not use the information to help prevent them proceeding with  their hazardous crossing?

The country is at boiling point over this failure of the UK state. Labour exploited the issue to get into power. They knew how unpopular the small boats were and  promised to smash the gangs. Instead illegal migration has increased rapidly and the changes they have made so far make it less likely they will carry out their promise. They removed the Rwanda scheme to provide a safe place to send people where they should have  reinforced the law to make it work. They claimed  credit for volunteer returnees, largely possible from the previous government’s agreements with other  countries.

 

When foreign policy is based on the impossible it makes the UK look powerless

In 2014 a weak West watched as Russia took over Crimea. It was  part of Russia’s  aggressive policy of expansion in Eastern Europe. Russia responded to the West which had  helped undermine an elected President of Ukraine  because he  was blocking closer ties to the EU  leading to EU membership.

The UK like the EU it belonged to made its foreign policy the return of Crimea to Ukraine. More sensibly the UK stated  it would not send in troops to try to evict the  Russians. Russia made clear it was keeping Crimea and held a referendum which the West did not accept which showed big support for Crimea being Russian.

So what is the reality of our policy to return Crimea to Ukraine? Fighting to do that would kill too many of the people in the Crimea the EU/UK claims to want to liberate. Declaring war on Russia would entail huge loss of life and damage. So the UK pretends there is some diplomatic way of restoring Crimea to a Ukraine that wants to become part of the EU. As this is all about Russian aggression meeting EU expansion we should  leave  the problem to the EU. It is absurd to suggest the UK can find a diplomatic means to return Crimea.

Now the PM is doing the same stupid thing over Palestine. Hamas and Israel are at war. Hamas does not want a two state solution because it wishes to remove  the state of Israel from the Middle East. Israel does not want a two state solution  as it regards Hamas as a terrorist organisation which will never live peacefully as a neighbour alongside it. All the time Hamas keep the hostages and fight for every building and street in  Gaza, often operating from  hospitals and blocks of flats, offering to recognise a Palestinian state helps them and impedes negotiations for peace.

Facing fierce attacks from the Conservatives and Reform on this policy, the PM has now issued a clarification to explain he does not want the Palestine State he “recognises” to contain any influence or power for Hamas. This is just ludicrous. Gaza would be an important part of a Palestinian state and it is currently being controlled by Hamas who fight on and refuse the give up the hostages. They started the war with their terrorist murders of Israeli civilians. He has to deal with the fragmented pattern of Palestinian settlement and government as it currently  is.

I share his grave concern about the loss of life and the destruction in  Gaza and like most people want to see peace. What is clear is the UK has no influence over either Hamas or Israel to help bring about that peace. We need to let Qatar, Egypt, the USA and the others who do have some influence  work on  peace negotiations. Hamas will continue to claim Israel’s  response is disproportionate whilst Israel will claim Hamas as a terrorist organisation should not be running Gaza policy. What is the UK’s answer to that fundamental disagreement, which stands in the way of peace? Recognising a state that does not exist, and stating one of the two combatants should not be involved in its future government is fantasy politics.

The AI investment

It is good news that the UK government welcomes US digital companies here to invest, create jobs and provide the technology all our businesses and households need to live an on line life. Most commentators have welcomed it.

Few news outlets have read what was agreed or provided much commentary on what it means. The formal Agreement signed by the President and Prime Minister is  a Memorandum of Understanding  between the two governments. It is non binding. It contains no pledges of money. It is a statement of good intent for the leading departments and institutions of the state on both sides of the Atlantic to co-operate more fully in the named fields of quantum computing, nuclear energy, AI, 6G  and digital development. It is an important statement from the top of both governments, but it now needs a lot of detailed work by the institutions and departments to identify the projects, the research areas and the procurement where common working will help both sides. It could lead to some good developments, as both sides have technology advances that the other would like to share and develop together.

There was then the press statements that the two had agreed £250bn of investment passing both ways across the Atlantic, suggesting £150 bn would come from the US to the UK. £150 bn is a significant sum for a £3 tn economy. £100 bn is useful even for a £23 bn economy. The £150 bn however, is not all new money and is not one year money. Microsoft accounting for £22 bn is a multi year programme, much of it already committed. The bulk of it is a £100 bn commitment by Blackstone to be spread over ten years. Google’s £5b includes a data centre already well advanced.

It’s a well know government technique to ask the private sector what it is going to spend, to gross it up by taking estimates of future years and announcing one large number. That can be good for morale and gives the businesses their day of extra publicity for what they are doing. This was one of the bigger and better lists, and no doubt the focus of President and Prime Minister on technology helped to direct more efforts to this crucial area of strengthening what the UK does and what it buys in this sector where the US dominates. It was notable that the projects mentioned for investment in the pharma sector were ones where UK based groups will invest more in  the US, reflecting the US attraction of this investment and the damage the NHS procurement has done to keeping and expanding investment here despite the government wanting to boost the sector.

The whole event was a timely reminder for those who thought about it of the dominance of Nvidia, Alphabet, Apple, Microsoft, Meta, Amazon and the other US tech giants. The UK will continue to be very dependent on these great US companies, with every business and home needing their systems, their chips, their cloud storage, their apps to run their daily lives. The EU is even further behind the US than the UK is in these crucial areas of the digital revolution. The UK should ask itself why it has not done better, why some of its best ideas and companies have been sold early to the US and why now we depend on the US ability to turn billion dollar companies into trillion dollar companies. 9 of the 10 largest companies in the world by capitalisation are now US, with the tenth being Taiwan Semiconductor that has substantial  capacity in the US and supplies the US industry. Nvidia alone has a larger market value than all  the London stock market companies added together.