Rory Stewart in the House of Commons.
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Senior Labour figures back Rory Stewart for top defence post

Tessa Jowell, Bob Ainsworth and Dan Jarvis endorse the Tory MP as defence select committee chair. 

One small but significant change to the way parliament works in recent years has been the election of chairs to select committees. Previously they were in the gift of party whips. The innovation has been welcomed by MPs who felt that the authority of the legislature had been systematically undermined by an over-mighty executive (although that is more of a hazard when one party has a commanding majority).

One such election happens tomorrow when a new chair will be named for the defence select committee. It is a significant post given the sensitivity of the issues in hand – the future of funding for armed forces in an era of budget austerity; rolling anxiety about Britain’s appetite for military intervention; rapidly shifting views of what constitutes a sensible strategic deployment of limited resources as the nature and scale of new threats emerge and old ones recede.

By predetermined allocation the job goes to a Conservative, but the race is fiercely competitive within that pool. All MPs get a vote, which means candidates have to demonstrate a capacity to work with opposition colleagues. Other attractive criteria include, naturally, experience and expertise in defence matters and a record of independence. The latter point is emphasised by those parliamentarians who see the committee chair as a place where policy rigour and free-thought must trump obedience to the party line.

An early favourite was Keith Simpson, a junior minister at the Foreign Office. Now the lead contenders are said to be Rory Stewart, an author, expert on Afghanistan and former diplomat in Iraq and Julian Lewis, a former front-bencher who shadowed the armed forces portfolio in opposition. Other candidates include Bob Stewart, a former Army officer and Julian Brazier, a junior minister under John Major and a territorial army veteran. At the back of the pack are Crispin Blunt, Tobias Elwood and James Gray.

Tory backers of Rory Stewart are today gladdened by a potentially vital intervention from the Labour camp. Three prominent opposition MPs – Tessa Jowell, Bob Ainsworth and Dan Jarvis – have backed Stewart in an email circulated to colleagues. The latter two signatories in particular will attract note since Ainsworth is a former Defence Secretary and Jarvis served in the Paras and is often cited as one of Labour’s stars-yet-to-rise. Whether their intervention makes a difference will become clear tomorrow. Meanwhile, the effusive tone of the endorsement makes interesting reading for followers of such matters:


Dear Colleagues,

We are writing to ask if you might support Rory Stewart to be Chair of the Defence Select Committee. He is a fresh and independent voice and a very thoughtful analyst of UK Defence Policy. He has challenged the government's Afghan strategy, calmly and with real impact. But he continues to argue ‎that interventions are sometimes – as in Bosnia or Rwanda - necessary.‎ He does this on the basis of a unique experience working in and with the military across all the major conflicts of the last two decades.

Having served briefly as an infantry officer in the Black Watch, he served with the Foreign Office in Indonesia, in Bosnia, in Montenegro in the wake of the Kosovo campaign and in Iraq (where he as the deputy governor of two provinces in Southern Iraq). He then left the Foreign Office to set up an NGO, Turquoise Mountain, in Afghanistan. He spent three years living in Kabul establishing a clinic, a primary school, and leading an urban regeneration project. He was appointed Professor of Human Rights at Harvard’s Kennedy School and lectures in Defence Colleges and universities in the US and Britain. He has written three books on Iraq, Afghanistan, and Intervention, focused on defence policy.

He has demonstrated over four years on the Foreign Affairs Committee, that he is a collegial, non-Partisan colleague with exceptional experience and knowledge of recent conflicts. He is not tied to the ‘Cold War’ but instead has reflected deeply on future challenges from Human Rights to Cyber-Security. We feel he would be a dedicated, intelligent, fair and open-minded Chair, never afraid to hold the government to account. We would be very grateful if you would consider voting for him.


With best wishes,


Tessa Jowell

Bob Ainsworth

Dan Jarvis

Rafael Behr is political columnist at the Guardian and former political editor of the New Statesman

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Q&A: What are tax credits and how do they work?

All you need to know about the government's plan to cut tax credits.

What are tax credits?

Tax credits are payments made regularly by the state into bank accounts to support families with children, or those who are in low-paid jobs. There are two types of tax credit: the working tax credit and the child tax credit.

What are they for?

To redistribute income to those less able to get by, or to provide for their children, on what they earn.

Are they similar to tax relief?

No. They don’t have much to do with tax. They’re more of a welfare thing. You don’t need to be a taxpayer to receive tax credits. It’s just that, unlike other benefits, they are based on the tax year and paid via the tax office.

Who is eligible?

Anyone aged over 16 (for child tax credits) and over 25 (for working tax credits) who normally lives in the UK can apply for them, depending on their income, the hours they work, whether they have a disability, and whether they pay for childcare.

What are their circumstances?

The more you earn, the less you are likely to receive. Single claimants must work at least 16 hours a week. Let’s take a full-time worker: if you work at least 30 hours a week, you are generally eligible for working tax credits if you earn less than £13,253 a year (if you’re single and don’t have children), or less than £18,023 (jointly as part of a couple without children but working at least 30 hours a week).

And for families?

A family with children and an income below about £32,200 can claim child tax credit. It used to be that the more children you have, the more you are eligible to receive – but George Osborne in his most recent Budget has limited child tax credit to two children.

How much money do you receive?

Again, this depends on your circumstances. The basic payment for a single claimant, or a joint claim by a couple, of working tax credits is £1,940 for the tax year. You can then receive extra, depending on your circumstances. For example, single parents can receive up to an additional £2,010, on top of the basic £1,940 payment; people who work more than 30 hours a week can receive up to an extra £810; and disabled workers up to £2,970. The average award of tax credit is £6,340 per year. Child tax credit claimants get £545 per year as a flat payment, plus £2,780 per child.

How many people claim tax credits?

About 4.5m people – the vast majority of these people (around 4m) have children.

How much does it cost the taxpayer?

The estimation is that they will cost the government £30bn in April 2015/16. That’s around 14 per cent of the £220bn welfare budget, which the Tories have pledged to cut by £12bn.

Who introduced this system?

New Labour. Gordon Brown, when he was Chancellor, developed tax credits in his first term. The system as we know it was established in April 2003.

Why did they do this?

To lift working people out of poverty, and to remove the disincentives to work believed to have been inculcated by welfare. The tax credit system made it more attractive for people depending on benefits to work, and gave those in low-paid jobs a helping hand.

Did it work?

Yes. Tax credits’ biggest achievement was lifting a record number of children out of poverty since the war. The proportion of children living below the poverty line fell from 35 per cent in 1998/9 to 19 per cent in 2012/13.

So what’s the problem?

Well, it’s a bit of a weird system in that it lets companies pay wages that are too low to live on without the state supplementing them. Many also criticise tax credits for allowing the minimum wage – also brought in by New Labour – to stagnate (ie. not keep up with the rate of inflation). David Cameron has called the system of taxing low earners and then handing them some money back via tax credits a “ridiculous merry-go-round”.

Then it’s a good thing to scrap them?

It would be fine if all those low earners and families struggling to get by would be given support in place of tax credits – a living wage, for example.

And that’s why the Tories are introducing a living wage...

That’s what they call it. But it’s not. The Chancellor announced in his most recent Budget a new minimum wage of £7.20 an hour for over-25s, rising to £9 by 2020. He called this the “national living wage” – it’s not, because the current living wage (which is calculated by the Living Wage Foundation, and currently non-compulsory) is already £9.15 in London and £7.85 in the rest of the country.

Will people be better off?

No. Quite the reverse. The IFS has said this slightly higher national minimum wage will not compensate working families who will be subjected to tax credit cuts; it is arithmetically impossible. The IFS director, Paul Johnson, commented: “Unequivocally, tax credit recipients in work will be made worse off by the measures in the Budget on average.” It has been calculated that 3.2m low-paid workers will have their pay packets cut by an average of £1,350 a year.

Could the government change its policy to avoid this?

The Prime Minister and his frontbenchers have been pretty stubborn about pushing on with the plan. In spite of criticism from all angles – the IFS, campaigners, Labour, The Sun – Cameron has ruled out a review of the policy in the Autumn Statement, which is on 25 November. But there is an alternative. The chair of parliament’s Work & Pensions Select Committee and Labour MP Frank Field has proposed what he calls a “cost neutral” tweak to the tax credit cuts.

How would this alternative work?

Currently, if your income is less than £6,420, you will receive the maximum amount of tax credits. That threshold is called the gross income threshold. Field wants to introduce a second gross income threshold of £13,100 (what you earn if you work 35 hours a week on minimum wage). Those earning a salary between those two thresholds would have their tax credits reduced at a slower rate on whatever they earn above £6,420 up to £13,100. The percentage of what you earn above the basic threshold that is deducted from your tax credits is called the taper rate, and it is currently at 41 per cent. In contrast to this plan, the Tories want to halve the income threshold to £3,850 a year and increase the taper rate to 48 per cent once you hit that threshold, which basically means you lose more tax credits, faster, the more you earn.

When will the tax credit cuts come in?

They will be imposed from April next year, barring a u-turn.

Anoosh Chakelian is deputy web editor at the New Statesman.