Written Ministerial Statements

Thursday 9th June 2011 Written Statements

Thursday 9 June 2011

Tax Consultations

Thursday 9th June 2011 Written Statements

[The Exchequer Secretary to the Treasury (Mr David Gauke)]

Since the June Budget 2010, the Government have taken a number of steps to improve tax policy making, with consultation on policy and scrutiny of legislation as the cornerstones.

Budget 2011 announced a number of tax policy changes and longer-term tax reforms that will be subject to consultation. These are summarised in the tax consultation tracker, which is available on the HM Treasury website at:

http://www.hm-treasury.gov.uk/tax_updates.htm.

HM Revenue and Customs and HM Treasury will tomorrow publish the following consultation documents:

A new incentive for charitable legacies—A consultation to inform policy detail on how best to implement a lower rate of inheritance tax when leaving 10% or more of an estate to charity.

Consultation on the patent box—A consultation on how to implement a reduced 10% rate of corporation tax for profits arising from patents.

Research and development tax credits: response and consultation —A response to the November 2010 consultation and detail of further proposed changes to the research and development tax reliefs.

Updates to dates for some consultations planned for June and July have been made to the tax consultation tracker.

Affordable Homes Programme

Thursday 9th June 2011 Written Statements

[The Minister of State, Department for Communities and Local Government (Greg Clark)]

Further to the written statement of 14 February 2011, Official Report, column 36WS from my right hon. Friend the Minister for Housing and Local Government, I am today announcing the publication of the technical revision to annex B of planning policy statement 3, to make clear that affordable rent falls within the definition of affordable housing for planning purposes. Also published today is a document summarising the responses that were received to the consultation paper, planning policy statement 3: “Planning for Housing Technical Change to Annex B, Affordable Housing Definition”, published on 14 February 2011; and an “Affordable Rent Impact Assessment”.

Planning policy statement 3, with a revised annex B can be found at: www.communities.gov.uk/publications/planningandbuilding/pps3housing.

The summary of responses is at: www.communities. gov.uk/publications/planningandbuilding/pps3annexsummary.

The affordable rent impact assessment at: http://www.communities.gov.uk/publications/housing/rentimpactassessment.

The above documents have been placed in the Library of the House.

Education and Youth Council

Thursday 9th June 2011 Written Statements

[The Parliamentary Under-Secretary of State for Education (Tim Loughton)]

Education Council

I represented the UK at the Education Council. The Council was preceded by a ministerial breakfast on the subject of adult learning. During this I set out UK policy on our skills strategy, reforms to the national careers service, and the forthcoming Government consultation on informal adult learning.

Early school leaving

The Council agreed a recommendation on policies to reduce early school leaving by qualified majority. The UK voted against the recommendation as it was inconsistent with our national approach. While we understand and accept the importance of reducing early school leaving in the context of the Europe 2020 strategy, we have concerns with the policy approach suggested in the recommendation. For example, some of the language on “modularisation of courses” and “individualised learning approaches” sits uncomfortably with our strong belief that it is for teachers to decide the educational styles that best suit their students’ needs. Commissioner Vassiliou later noted that

“in response to the UK points, Early School leaving cannot be solved by education alone”.

A ministerial debate on this subject focused on prevention policies to combat early school leaving with particular emphasis on children from a socio-economically disadvantaged background, including the Roma. Member states were asked about national mechanisms for evaluating these policies, and the role of the EU in this area. I and a number of other member states noted that quality education, literacy and high attainment were key to combating early school leaving. I also noted that teachers had a key role to play and that pupil attainment was central to this issue, alongside clear measures of accountability. The presidency stated that a summary of this discussion would be presented to the June European Council.

Early childhood education and care

The Council adopted conclusions on early childhood education and care. The conclusions invite member states to analyse and evaluate existing early childhood services in terms of availability, affordability and quality. They also invite the Commission to support member states in exchanging good policies and practices and to broaden the evidence base in this field.

Promoting the educational mobility of young people

A Council recommendation on promoting the educational mobility of young people was also agreed. The recommendation suggests a number of measures including: improving information and guidance on educational mobility opportunities, improving language teaching and exchanges between schools, reducing administrative burdens linked to organising educational experiences abroad, and improving procedures for validation and recognition of educational outcomes following the period abroad.

Italy abstained in the vote to agree the recommendation over concerns about referring to a monitoring system proposed by the Commission, known as the “mobility scoreboard”. A study into the feasibility of such a scoreboard is yet to be carried out.

Youth Council

The UK deputy permanent representative Andy Lebrecht represented the UK at the Youth Council.

Effective participation of young people in democratic life

The Council adopted a resolution on encouraging new and effective forms of participation of all young people in democratic life. The UK is strongly in favour of youth participation and I will host a representative young people’s advisory group that will scrutinise and provide feedback on emerging policy proposals.

Structured dialogue with young people on youth employment

The Council adopted a resolution on structured dialogue with young people and the EU Institutions on youth employment. The resolution recommends various changes to the structured dialogue with young people. This includes political follow-up of the results, greater participation by disadvantaged youth and improved working methods that provide a meaningful process for young people.

Voluntary activities

Ministers also debated voluntary activities of young people and their contribution to the development of local communities. National initiatives mentioned included subsidies for youth organisations and national citizenship programmes (in Italy, France, and the UK, where national citizen service will have its pilot this summer).

Feed-in Tariffs

Thursday 9th June 2011 Written Statements

[The Minister of State, Department of Energy and Climate Change (Gregory Barker)]

On 18 March I announced the start of a consultation on proposals to change feed-in tariffs (FITs) for solar photovoltaic (PV) installations larger than 50 kilowatts and farm-scale anaerobic digestion (AD) of up to 500 kilowatts.

Having carefully considered the responses received, of which there were more than 500, I can now confirm the outcome of that consultation and the fast-track review of FITS.

It is clear from all the evidence received as part of the consultation that the demand for feed-in tariff subsidy has grown so substantially that it now significantly exceeds the amount of funding available during this spending review period. Without urgent intervention, the scheme would have been completely overwhelmed within a very short period of time. That is why it is so important for us to act now: it is vital that we protect the integrity of the scheme and can continue to support the ambitious roll-out of new green decentralised energy technologies in homes, communities and small business.

With that aim in mind, the coalition has decided to proceed with the proposed tariff reductions for solar photovoltaic (PV) installations larger than 50 kilowatts and all stand-alone installations, and increases for farm-scale AD as set out in the consultation document. The detail of this decision and the analysis underpinning it are set out in “Feed-in Tariffs Scheme: Summary of Responses to the Fast Track Consultation and Government Response” which the Government are publishing today and will be available at: www.decc.gov.uk/FITs.

I recognise that this decision will be unwelcome to some, including those involved in large solar PV projects who disagreed with the proposals relating to PV. I can assure the House that it is not a decision that has been taken lightly. All the concerns raised by respondents, together with alternative approaches suggested, have been carefully considered, analysed and taken into account.

However, these concerns have to be balanced against the need for a responsible approach to public subsidies like FITs, to ensure value-for-money for consumers and ensure scheme longevity. The fact remains that under the current tariffs, large-scale solar PV projects are securing much higher returns on investment than the scheme intended. This is reflected in the unanticipated number of such projects now in the pipeline.

Put simply, the FITs scheme has a vital role in building a more decentralised energy economy, but if we do not act now to control short-term expenditure on solar PV more closely in line with the forecasts that we inherited from the last Government, the negative impacts on the scheme will be considerable and the amount of funding for other technologies and smaller, domestic-scale solar PV will be severely constrained.

To give effect to these tariff changes, today a set of licence modifications to amend the standard licence conditions of electricity supply licences in Parliament. Subject to any necessary state aid clearance and the parliamentary process required by the Energy Act 2008, the generation tariffs changes will apply from 1 August 2011.

The Government will not act retrospectively and these changes to generation tariffs will only affect new entrants into the FITs scheme from 1 August 2011. Installations which are already accredited for FITs at the time will not be affected.

Immigration

Thursday 9th June 2011 Written Statements

[The Minister for Immigration (Damian Green)]

The Home Office is today publishing a consultation on employment-related settlement, tier 5 of the points-based system and overseas domestic workers. A copy will be placed in the Library of the House.

Immigration has enriched our culture and strengthened our economy, but it must be controlled so that people have confidence in the system. This Government have already introduced a limit on non-EU economic migrants entering the UK; reshaped tiers 1 and 2 of the points-based system to increase selectivity and skills requirements; and announced changes to tier 4, the student visa system. These policies will result in a downward trend in net migration and a reduction in abuse, but we need to take further action to ensure we reach sustainable levels.

This consultation is the next stage in our immigration reforms. We intend to break the automatic link between coming to the UK to work and settling here permanently. In 1997, there were fewer than 10,000 employment-related grants of settlement; by 2010, that number had risen to over 84,000. We need to be more selective about who we allow to stay. The consultation considers how we do that. Its starting point is that we need to be clearer in our labelling of temporary and permanent migration routes to enable migrants and the public to better understand the immigration system. We propose to reposition tier 2 as a temporary route, predominantly a means of filling short-term skills shortages in the UK labour market. Most tier 2 migrants should expect to leave the UK after a maximum of five years in the UK. In future, only a tightly controlled minority will be permitted to stay permanently, where it is in the interests of the UK to do so. We are seeking views on how to achieve this in a way which enables the best outcomes for the economy. Alongside the public consultation, the Home Secretary is also commissioning advice from the Migration Advisory Committee on the economic effects of removing or restricting settlement rights, and on criteria for identifying the most economically important migrants for settlement. We have already announced reforms to the tier 1 investor and entrepreneur categories, including the possibility of accelerated settlement for these high-value migrants. We will be consulting, however, on whether tier 1 exceptional-talent migrants should have an automatic route to settlement and whether we should remove the ability of all tier 1 migrants to apply for further leave to remain after five years in the UK. To aid integration and social cohesion, we are also considering the introduction of an English language requirement for the dependants of economic migrants who signal their intention to apply for settlement.

The consultation also sets out proposals for reform of tier 5 of the points-based system and the overseas domestic worker routes.

The Government do not plan any reforms to the tier 5 (youth mobility) category. We do, however, want to consider restricting leave under the tier 5 (temporary worker) categories to 12 months, to reinforce the temporary nature of the route, which is intended to be primarily for non-economic purposes, such as scientific exchange and artistic and cultural activities. The consultation asks whether it is right that migrants in these categories should be able to be accompanied by dependants and whether those dependants should have open access to the UK labour market. We will also consider raising the threshold for entry to the Government-authorised exchange sub-category of tier 5 so that the skills requirement is at graduate level, bringing it into line with the revised tier 2 arrangements. Our intention is that the UK ancestry route should remain unchanged.

Finally, the consultation considers the two routes by which overseas domestic workers may enter the UK to accompany or join their employer’s household. Currently, there are two routes: one for domestic workers in private households and one for private servants working in diplomatic households. Both allow for extended periods of temporary leave (five years and six years respectively) and both enable the domestic worker to apply for settlement after five years. This is exceptionally generous, and sits ill with an immigration system focused on meeting identified skill shortages and securing the brightest and best migrants. We are also conscious that overseas domestic workers may be vulnerable to abuse and exploitation. The national referral mechanism provides an effective means of protection and support for victims but we are considering tackling the problem at source. So as well as seeking views on restricting leave to a maximum of six or 12 months, which would allow domestic workers to accompany their employer for a short period only, and removing the right to bring dependants, we also want to consider whether we should close the private households route altogether. This would oblige those wanting domestic workers to recruit instead from the UK labour market, with the rights and protections that affords.

Details of the public consultation can be found on the Home Office website and copies will also be placed in the Library of the House.

The consultation will run for three months, until 9 September and we will announce our firm plans in due course. As the Home Secretary announced in February, we intend the settlement reforms will affect those workers who entered economic migration routes under the immigration rules in force from 6 April this year and who, under the current system, could have expected to apply for settlement in 2016. The timing of reforms to tier 5 and the overseas domestic worker routes will depend on the outcome of consultation, but we would anticipate them taking effect during 2012.

A further consultation document will be published later this year, considering the rules applying to those who come to the UK for family reasons such as marriage.

Police (Firearms)

Thursday 9th June 2011 Written Statements

[The Minister for Policing and Criminal Justice (Nick Herbert)]

The latest figures on police use of firearms in England and Wales from 1 April 2009 to 31 March 2010 show that:

The number of police operations in which firearms were authorised was 18,556—a decrease of 1,395 (7%) on the previous year.

The number of authorised firearms officers (AFO’s) was 6,979—an increase of 111 (1.6%) officers overall on the previous year.

The number of operations involving armed response vehicles was 14,089—a decrease of 2,475 (15%) on the previous year.

The police discharged a conventional firearm in six incidents (up from five incidents in 2008-09).

Full details are set out in the tables below:

No. 32 (The Royal) Squadron

Thursday 9th June 2011 Written Statements

[The Minister of State, Department for Transport (Mrs Theresa Villiers)]

As the House will be aware, work was carried out by the royal household in 2008 to consider the option for procuring a small aircraft for official travel within the UK. This work concluded that such an acquisition could not at that time be justified on the grounds of value-for-money.

The royal household therefore continue to make use of chartered air services and the scheduled market and, where irreducible spare capacity exists, will continue to make use of No. 32 (The Royal) Squadron.

Employment Support (Disabled People)

Thursday 9th June 2011 Written Statements

[The Parliamentary Under-Secretary of State for Work and Pensions (Maria Miller)]

I have today published a copy of the report to the Government by Liz Sayce, chief executive of RADAR, reviewing specialist disability employment programmes. Copies of the report will be available in the Vote Office.

Meeting the aspirations of disabled people for employment in the full range of jobs and sectors of the economy, and ensuring that the services we provide reflect the needs of individual disabled people in the modern work place are important goals. The employment services we provide for disabled people must be effective. This report shows clearly that there is more that needs to be done.

I welcome this review, and the central theme that resources for supporting disabled people into and in employment should be primarily focused on disabled people themselves.

The report contains a range of specific recommendations, and the Government intend to consult on these before making any decisions. A full response and consultation will be issued shortly.