NATO Summit 2018 — House of Lords, 2018-06-26
Topic: International Affairs
William John Lawrence Wallace (Liberal Democrats, Centre to centre-left): I thank the noble Lord. I think that that might strengthen my point The Prime Minister has declared the objective of a deep and special partnership in foreign policy and security, as well as in trade, with the European Union after we leave, which is to be formalised in the treaty. I ask the noble Baroness, Lady Goldie, whether she can tell us a little more about that, since the Prime Minister has given us only the heading and not yet any of the detail of what this rather important—indeed, fundamental —aspect of British foreign and defence policy might be. The Prime Minister was undermined yet again by the Foreign Secretary when he referred to European Governments last week as the enemy, when she is, after all, talking about them as our closest partners The debate about whether we are in the top tier or not is, in a sense, yet again about whether we think we are superior to the French and the Germans, out there in the Pacific Ocean going back east of Suez, or whether we accept that we are, as the Duncan Sandys report suggested very nearly 60 years ago, a leading power of the second rank. When the report came out in the 1960s, the Daily Mail attacked all the members of the committee for suggesting that Britain was not a global power. We have not changed since then. I spent last summer looking back at some of the things that Jo Grimond—the leader of the Liberal Party when I joined—had written in the late 1950s about Britain’s place in the world. He said that the whole idea that we had to stay east of Suez, that the Commonwealth was a long-term continuing asset, and that we were separate from Europe and should stay out of European integration was a mistake. That could almost be written again today, because we are still stuck in this endless argument about how special we are. Indeed, the Henry Jackson Society’s briefing for today’s debate suggested that being able to project power to the Indo-Pacific region was key to Britain’s future. One of the reasons why the Wilson Government reluctantly decided to retreat from east of Suez was that the cost of maintaining naval forces east of Singapore, or even east of Aden, was such that it was more than we could bear. The Foreign Secretary has again boasted that we are returning east of Suez. The cost of that and the extent to which it will overstrain our limited capabilities seem enormous Lastly, I wish to warn everyone that if we are talking about spending more on defence we have to realise what this means for the British economy. It is now growing more slowly than it has for several years. It is likely, as we leave the European Union, to grow even more slowly, which means that tax revenue will not increase. There are those, such as Liz Truss, who said two days ago that we should not contemplate tax increases. Jacob Rees-Mogg in the Mail today is quoted as saying that he does not think there should be any tax increases to provide more money for health. If we are going to give a lot more money to defence, we have to raise taxes or cut expenditure elsewhere. We have cut local authority spending by nearly 40% over the past few years. I see when I walk around Bradford how much that has damaged local communities. We have cut spending on prisons and probation by 40%. We have cut spending on the police by a third. If you are saying we should cut into some of those issues more deeply in order to be able to fund defence, then I suspect you are not going to get any more money for defence unless you are prepared to argue for a higher level of taxation. Let us therefore be realistic and recognise that we are now in a hard place as we leave the European Union, and we have to cut our coat and our global aspirations according to the limited cloth we have.