(10 years, 2 months ago)
Commons ChamberRead Hansard Text Read Debate Ministerial Extracts
Heidi Alexander (Lewisham East) (Lab)
1. What changes there were in the number of apprenticeship starts for under-19s in the academic year 2012-13 compared with the previous academic year.
The Minister for Skills and Equalities (Nick Boles)
Over the past two years, we have removed 54,000 apprenticeships for under-19-year-olds that had a planned duration of less than 12 months, so the overall number of apprenticeship starts for that age group has fallen by 15,000. The number of apprenticeships for under-19-year-olds including a real job and lasting for more than 12 months increased by 25,000.
Heidi Alexander
On a recent visit to Bromley college, I was told by a construction skills tutor that in the eight years he had worked there not once had he taught a bricklaying apprentice. When I asked him why, I was told that the qualification associated with such an apprenticeship is very rigid, making it neither attractive nor appropriate for employers. If we want to reduce the reliance of the UK’s construction sector on migrant labour, should we not be doing more to make skills and experience available to our young men and women, so that they can go on to get jobs in the construction industry?
Nick Boles
I actually agree with the hon. Lady about many of the old standards for apprenticeships, which is why we have introduced the trailblazer programme so that groups of employers are putting together relevant and demanding but accessible standards for young people. I visited a fantastic new further education college the other week—Prospects college of advanced technology in Basildon—where I met a few apprentices who are doing a bricklaying apprenticeship and find it very worth while. The hon. Lady is right, however, that many of the old apprenticeship standards were inadequate and unattractive to young people and employers.
Sir Peter Luff (Mid Worcestershire) (Con)
Does my hon. Friend think that the public sector itself is setting a good enough example when it comes to offering apprenticeships?
Nick Boles
Some parts of the public sector set a fantastic example—the Ministry of Defence is a very good example and the NHS is another—but not all Government Departments and, I suspect, not all of us as Members of Parliament, are doing everything we could. I urge every part of the public sector to do everything it can to create apprenticeships so that more young people can get on the ladder to a successful career.
Mr Liam Byrne (Birmingham, Hodge Hill) (Lab)
It is very bad news that the number of apprentices under the age of 19 is falling and that the number of apprentices who go on to study degree-level skills is just 2% and rising at a very slow pace. The Opposition are clear that our priority for expanding university level education is for technical degrees so that more apprentices can earn while they learn up to degree-level skills.
May I ask the Minister about the expansion plans? In the autumn statement, the Chancellor said that he would sell the student loan book to expand the number of degree-level places. On 20 July, the Secretary of State said that he and the Deputy Prime Minister had put that plan in the bin. Will the Minister tell the House what the story actually is? Are we going to expand degree-level places, and how on earth are we going to pay for them?
Nick Boles
Frankly, what is regrettable is that the Government of which the right hon. Gentleman was a major part created entirely phoney, Mickey Mouse apprenticeships, called programme-led apprenticeships, which involved no employment at all, no job and lasted less than a year. We make no apologies for culling those qualifications, which were a fraud on employers and young people. We are increasing the funding for higher apprenticeships and the plans have been set out.
Stephen Mosley (City of Chester) (Con)
Since May 2010, more than 3,000 young people in Chester have started an apprenticeship scheme, and those fabulous opportunities have become available only because more than 600 local employers are offering apprenticeships. Does my hon. Friend have any intention of changing the incentives that companies receive for taking on apprentices in order to encourage more companies to get involved and for more young people to have this fabulous opportunity?
Nick Boles
I thank my hon. Friend for his comments. Chester is just one example. The truth, contrary to what the right hon. Member for Birmingham, Hodge Hill (Mr Byrne) has said, is that in 2012-13 more people were in an apprenticeship—that is, at the start, middle or end of one—than ever before. The more than 830,000 young people that year is a number that the previous Government never even came close to, despite their Mickey Mouse apprenticeships.
My hon. Friend is right about incentives, particularly for young people to take apprenticeships and, more importantly, for employers to take them on, because often they are the ones who require the most supervision, and that is exactly what our funding reforms will deliver.
Richard Graham (Gloucester) (Con)
2. What steps he is taking to reduce regulation on businesses.
The Minister for Culture and the Digital Economy (Mr Edward Vaizey)
I am delighted to say that we are the first Government in modern history to reduce the overall burden of domestic regulation on business. Our one-in, two-out approach has cut the annual cost of regulation for businesses by £1.5 billion so far, and the red tape challenge has identified more than 3,000 regulations that we are planning to scrap or improve.
Richard Graham
One of the Government’s most encouraging steps has been to speed up payments by Government to suppliers that are small and medium-sized enterprises, but the Federation of Small Businesses and others estimate that the problem of late payment by businesses to businesses has increased significantly. Will my hon. Friend therefore work with business groups, such as the CBI, to encourage all their members to settle within 30 days, and will he consider establishing a kitemark for businesses that live up to that?
Mr Vaizey
I agree with my hon. Friend. We really need much greater openness about the payment practices of businesses. Knowing who are good payers and bad payers is essential in deciding with whom to trade. We will therefore bring forward legislation to require large and listed companies to publish their payment practices and performance. We will also work with business groups to strengthen the prompt payment code.
Simon Danczuk (Rochdale) (Lab)
There have been a number of attempts to amend the Deregulation Bill to reform retransmission fees for public sector broadcasters in the UK. Will the Minister look at the report published on Monday, which argues that reform could provide millions of pounds for the creative industries in the United Kingdom? Does he agree that the reform of retransmission fees should be included in the Deregulation Bill?
Mr Vaizey
The hon. Gentleman is referring to ITV’s report, which calls for ITV to be allowed to charge fees to other platforms. I am sure that the hon. Gentleman will have read the brilliant speech given by the Secretary of State for Culture, Media and Sport at the Royal Television Society earlier this week, when he said—I can almost quote it from memory, it was that good—that he will take a “long, hard look” at retransmission fees.
Mr David Nuttall (Bury North) (Con)
Given that many of the regulations that affect business emanate from the European Union, will the Minister meet the new EU commissioner for the internal market, industry, entrepreneurship and SMEs, Elzbieta Bienkowska, in the near future to urge her to introduce and adopt the UK Government’s one-in, two-out rule?
Mr Vaizey
We have a new set of Commissioners, so may I put on the record my gratitude to Neelie Kroes, who was the Commissioner I worked with most closely under the previous Commission, but who has now retired? I always enjoy meeting European Commissioners, and I also enjoy the fact that so much of the innovation that this Government come up with is now being copied by our European partners.
Mr Robin Walker (Worcester) (Con)
3. What recent assessment he has made of the competitiveness of the UK as a place to do business.
The Secretary of State for Business, Innovation and Skills (Vince Cable)
Last week, the World Economic Forum released its annual assessment of international competitiveness. The UK rose in the rankings to ninth place, and in relation to the responsibilities of my Department, to fourth place for labour markets and to second in the world for technological readiness and innovation. This is further evidence that our economic policies are delivering a more competitive economy. We are delivering on our commitment to make Britain the best place in the world to start and grow a business.
Mr Walker
I am grateful to the Secretary of State for that answer. I congratulate him and the Department on that progress. This Government have put making the UK the best place in the world to start a business right at the heart of that strategy, and businesses in Worcester are embracing that challenge. Does my right hon. Friend agree that it is a huge achievement that, since 2010, about 2,800 new businesses have been started in Worcester?
Vince Cable
And not only in Worcester. Indeed, one of the most rapidly growing programmes, operating through the British business bank, is the start-up loans scheme. My hon. Friend may be aware that approximately 19,000 start-up loans have now been made, with a value of over £100 million.
Mr Dennis Skinner (Bolsover) (Lab)
One business that is not growing—the Business Secretary knows that as well as me, because we met him a few weeks ago to talk about its demise—is the deep-mine coal industry. There are only three pits left now. Does he really want to preside over the demise of the last deep-mine coal pits in Britain? Two of them are in Yorkshire, and one is in Nottinghamshire. They are reaching the end of their lives, but they have reserves that should be exhausted. I have got a plan, and he knows about it. The Government should apply for state aid and get £70 million, which is only a tiny proportion of the £700 million that this Government took from the National Union of Mineworkers pension fund in February. That is all we need in order for those three pits—Hatfield, Thoresby and Kellingley—to be able to exhaust their reserves. Those are the conditions in Europe. Why does he not apply for the money, instead of being led by the Tories surrounding him, who are determined to see the end of the pits in Britain?
Vince Cable
The hon. Gentleman is right that we had a very good and constructive meeting with him and his colleagues on the future of the remaining deep-mine pits. He will be aware, because I think we explained this, that the state aid issue is much more difficult than he—
Vince Cable
I fear it is. I think that the hon. Gentleman will also recall that most of the deep-mine pits closed under the previous Government. However, we indicated that we were willing to advance a loan to make the closure of the pits a lot less brutal than it otherwise would be.
David T. C. Davies (Monmouth) (Con)
RBS has today recognised the competitiveness of the UK, or at least the southern part of the UK—the bits that are run by the coalition Government. Does my right hon. Friend agree that if RBS wants to domicile itself in the southern part of the United Kingdom, it should bring its jobs with it and not expect us to underwrite any mistakes that it may make in future?
Vince Cable
As it happens, I met the chief executive of RBS a couple of days ago. It is making good progress on sorting out the problems with its balance sheet and returning to normal business lending. I have been pointing out for quite a long time that the position of RBS in an independent Scotland would be very difficult, since its balance sheet is 10 times the size of the Scottish economy. It could hardly operate within Scotland as an independent country.
Andrew Miller (Ellesmere Port and Neston) (Lab)
Under the seventh framework programme, our universities were incredibly successful at accessing money, but our SMEs were not. Under Horizon 2020—the next programme —what steps will Her Majesty’s Government take to improve the lot of SMEs? Secondly, will the Secretary of State confirm that universities such as Edinburgh, which were hugely successful under framework 7, will not be successful if the vote goes the wrong way next week?
Vince Cable
On the hon. Gentleman’s latter point, he is right that Scottish institutions benefit disproportionately from UK research because of the excellence of their work and that they would no longer be guaranteed access to UK funding streams in an independent Scotland, although I hope they would maintain their excellence. We will certainly try to ensure that SMEs are taken properly into account in the competition for European funding. His point is a good one.
Mark Pawsey (Rugby) (Con)
A recent report showed that reshoring is increasing across the economy. That happens when UK companies source more of their products from the UK. It is estimated that over the next 10 years that could create 200,000 jobs and boost output by up to £12 billion. Does the Secretary of State agree that that is an effective demonstration of the increasing competitiveness of the UK economy?
Vince Cable
It is. Indeed, reshoring is happening in somewhat surprising areas. I had a meeting only yesterday with representatives of the British textile industry, which almost disappeared years ago. A significant amount of reshoring is taking place because companies want to be close to the market and regard the business environment as attractive. The same is happening in the aerospace supply chain and elsewhere. We are doing what we can to support that through the regional growth fund and other Government schemes.
Mr David Hanson (Delyn) (Lab)
Does the Secretary of State accept that companies such as Airbus, which is close to my constituency and which employs thousands of people, are successful and competitive because they work with German, French and Spanish colleagues to produce world-class planes? Does he agree that it is therefore essential that we remain part of a Europe-wide Union to ensure that we remain competitive?
Vince Cable
The right hon. Gentleman is absolutely right. The Airbus factory in north Wales is an extraordinarily impressive part of British manufacturing. Most of us who have been there have been overwhelmed by the quality of its work. He is right that it is a European company and that it could not operate on any other basis than as a European network. Another key factor in its success has been the industrial strategy and the support that it receives through the aerospace growth partnership.
Jim Shannon (Strangford) (DUP)
Northern Ireland is becoming a vital part of the United Kingdom’s business, trade and investment sector. It is showing clearly what it can do within the United Kingdom. Last week, Magellan Aerospace announced a £6-million investment and 47 new jobs in my constituency. Alongside that, there has been a £6.8 million investment in an advanced engineering and competitiveness centre for Northern Ireland, based in Belfast. Will the Secretary of State, in conjunction with the Northern Ireland Assembly and the Minister of Enterprise, Trade and Investment, Arlene Foster, develop innovative solutions in the advanced engineering sector, which are crucial to competitiveness and the growth of the British aerospace industry?
Vince Cable
Indeed, we will. I have had good discussions with Northern Ireland colleagues about the very successful advanced manufacturing sector. Bombardier has an expanding presence in Belfast, as the hon. Gentleman will know, and there are other parts of the aerospace supply chain that we are keen to develop in Northern Ireland.
Mr Chuka Umunna (Streatham) (Lab)
Before I ask my question, I am sure that on the anniversary of 9/11 the whole House will want to remember those who lost their lives, including British citizens, on that terrible day 13 years ago. Our thoughts, best wishes and prayers go out to their families and friends.
Scotland’s vibrant financial services sector is important to the UK’s competitiveness, and more particularly to Scotland’s competitiveness in the global marketplace. RBS has been mentioned, and no doubt the Secretary of State will also have heard Lloyds bank and Clydesdale bank say that they will relocate their headquarters to London in the event of separation. The vote next week is, of course, for the Scottish people, but does that not illustrate the lorry load of uncertainty for jobs, competitiveness and growth in Scotland that will come with the break-up of one of the most successful unions the world has ever seen?
Vince Cable
I absolutely agree with the hon. Gentleman and he makes the point well. In addition to the lists of institutions he has just given, Standard Life in the insurance sector has made it clear that it could not remain in Scotland were it to be an independent country. That relates to the need for large financial institutions to have a regulator, and in some cases a lender of last resort. A country the size of an independent Scotland would not be able to support those institutions. The hon. Gentleman is absolutely right in his approach.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
4. What steps his Department is taking to increase the number of highly skilled workers.
The Minister for Skills and Equalities (Nick Boles)
The hon. Gentleman is far-sighted and consistent in his support for the need for advanced skills in our economy, and he knows better than anyone that there are two ways to acquire those skills—through a university degree or through an apprenticeship, ideally a higher apprenticeship. That is why the Government are expanding and improving both routes.
Mr Sheerman
I hear what the Minister says, but I would hate for him to go into the next election with the mantra, “Complacency, complacency, complacency” on skills. There is an OECD report on the lack of skills of our graduates in this country, and Sir Michael Bichard has said that 16 to 19-year-olds are not equipped in a country where we are desperate for skills and do not have enough technicians, and where there is a real problem. What will the Minister do about that?
Nick Boles
There is no complacency because we are aware of quite how terrible the situation was that we inherited from the previous Government. Technical qualifications had been created that had literally no value, and we have swept them away. As I said earlier, there were apprenticeships that did not involve any work or any employer, and we have swept them away. There is a huge amount more work to be done to ensure that young people who have not secured good GCSEs in English and Maths go on studying and get those qualifications later in their careers. There are a huge number of further priorities for us and for any future Government, but progress has been made and it is good.
Andrew Jones (Harrogate and Knaresborough) (Con)
5. What support he is providing to pubs.
The Secretary of State for Business, Innovation and Skills (Vince Cable)
The Government have introduced a number of measures to support pubs, including ending the beer duty escalator and cutting beer duty. We are supporting pub tenants through the introduction of a statutory code of practice to govern the relationship between pub-owning companies and their tied tenants, with an independent adjudicator to enforce the code. The measures will be introduced through the Small Business, Enterprise and Employment Bill.
Andrew Jones
I thank my right hon. Friend for that reply. Pubs are often the hubs of their communities, but in Harrogate and Knaresborough we have had a spate of local pubs being converted into supermarkets. Will my right hon. Friend work across Government, particularly with the Department for Communities and Local Government, to see what more can be done further to support pubs, and keep them open and at the heart of local communities?
Vince Cable
My hon. Friend is right, and I believe that his constituency houses the Pub is The Hub voluntary organisation that plays an extremely important role in that respect. I think it receives significant funding from my colleagues in the Department for Communities and Local Government and the Plunkett Foundation, and I encourage my hon. Friend to support that organisation in its work.
Sir Bob Russell (Colchester) (LD)
I endorse the question that has just been put, so will the Minister look across the Government—if we can have joined-up Government—at possibly reducing the rateable value on traditional community local public houses, which face a lot of competition from binge-drinking premises and supermarkets?
Vince Cable
The issue of rateable valuation will arise in the revaluation, when it occurs, but my hon. Friend will be aware that pubs have benefited significantly in the autumn statement from the package on business rates, which is worth £1 billion. A third of all pubs have now benefited from the £1,000 discount given to low-value property.
Toby Perkins (Chesterfield) (Lab)
The Opposition very much welcome the news that the Government are bringing forward a new pubs code in the small business Bill—we would, because we have asked for it on three occasions, and the Secretary of State has voted against it. He will know that there is concern that the appeals mechanism gives tenants the opportunity to have a “Here’s what you could’ve won” review of their appeal without any right to question it. There is also a sense that the small, family-owned brewers are being brought into a problem that they did not make. What representations has he had on the Bill, and can he give us any assurances that it will satisfy people who are worried about our pubs, so that we do not have to keep returning to the issue, and so that the industry has certainty on what the future in the next Parliament will look like?
Vince Cable
We have no wish to create problems for the small, family-owned pubs, which are an extremely important part of the industry. The hon. Gentleman will be aware that one cornerstone of the proposals is the free-of-tie rent assessment, which does not apply to pubs with smallholdings. Small, family-owned pubs are already subject to the voluntary code. In a sense, it would be right for tied pubs of all kinds to be given some protection.
Mr Rob Wilson (Reading East) (Con)
6. What steps his Department is taking to encourage investment in science.
The Minister for Universities, Science and Cities (Greg Clark)
I am looking forward to travelling after Question Time to Birmingham, to the British science festival, where we will reflect on the important contribution that science, research and innovation make to our long-term competitiveness and growth. The Government have ring-fenced the science and research programme at £4.6 billion a year from 2011 to 2016, and we are committed to providing £1.1 billion a year in science capital, increasing with inflation to 2021—the largest ever capital grant to UK science.
Mr Wilson
May I take this opportunity to congratulate my right hon. Friend on his new position. Reading university is an outstanding higher education institution and will shortly welcome thousands of new students, who will receive a high-quality education. The university contributes to jobs and growth in the area and is planning a new science park. Will my right hon. Friend assure me that the autumn statement will reflect further support for science and the plans and priorities of universities such as Reading?
Greg Clark
I am grateful for my hon. Friend’s kind words. He has been a great champion of higher education in Reading and across the country. One of my tasks over the next few weeks is to work on the science and innovation strategy, including the science capital consultation, which will be published alongside the autumn statement. That will make clear and reinforce for a 10-year horizon the continuing importance that we attach to science.
Mike Kane (Wythenshawe and Sale East) (Lab)
Manchester is the home of the revolutionary material graphene. This week, we heard the tremendous announcement of a £60 million second hub for graphene in the city. Will the Minister join me and everyone involved in securing that funding, particularly Manchester university and Masdar, the Abu Dhabi clean energy and renewables technology group?
Greg Clark
I will indeed. Along with my hon. Friend the Life Sciences Minister I was with the chancellor of the university of Manchester yesterday. I congratulate the vice-chancellor, Nancy Rothwell, and all responsible on securing a huge coup for this country. Having a Nobel prize-winning piece of research located for the future in the UK and in the north-west is a cause for great celebration.
Diana Johnson (Kingston upon Hull North) (Lab)
7. What steps the Government are taking to ensure the value of the minimum wage keeps pace with inflation and encourage firms to pay a living wage.
The Secretary of State for Business, Innovation and Skills (Vince Cable)
Since 2010, the national minimum wage has increased faster than average earnings. From 1 October, the adult rate will rise above inflation to £6.50, giving more than 1 million workers the biggest cash increase in their take-home pay since 2008. Last year, I asked the Low Pay Commission to look at the conditions needed for faster increases. It concluded that we are in a new phase of year on year, faster real increases in the national minimum wage.
Diana Johnson
Since 2010 there have been only three prosecutions for breaches of the national minimum wage law. If the Secretary of State agrees, as I think he will, that more needs to be done to enforce the minimum wage, why in January did Liberal Democrat Members vote down Labour’s proposals for tougher enforcement, including additional powers for local authorities to take enforcement action?
Vince Cable
Both sides of the coalition will be introducing and supporting tougher enforcement measures in the small business Bill. The hon. Lady will already know that, adding to the enforcement regime we inherited, we have introduced not just the naming and shaming procedure but the prospect of significantly tougher penalties and much larger fines.
Margot James (Stourbridge) (Con)
My right hon. Friend will know of the previous Government’s poor record on enforcing the minimum wage. Is he confident that with his new proposals we will dramatically improve on that poor record?
Vince Cable
We will, and an administrative measure that will help that process is an increase in Her Majesty’s Revenue and Customs’ enforcement budget. As my hon. Friend will know, the first stage in the process is to insist that the enforcement authorities address deficiencies in the minimum wage. She is right also to emphasise that the enforcement regime we inherited was a rather weak one.
Oliver Colvile (Plymouth, Sutton and Devonport) (Con)
9. What steps he is taking to increase access to higher education.
The Minister for Universities, Science and Cities (Greg Clark)
Last year, the Chancellor announced that we would remove the cap on the number of university places in 2015-16 so that no bright person who wants to study at a higher level should be turned away. The Government have also put in place a new framework placing more responsibility on higher education institutions to widen access, and that approach is paying off, with more young people admitted to university this year than ever before and a big increase in the number of young people from disadvantaged backgrounds.
Oliver Colvile
Earlier this year, the Government announced plans to create a further education college for nuclear engineering. As my right hon. Friend will know, not only is Devonport home to an engineering university technical college, but its dockyard deals with the refitting and refuelling of nuclear submarines. As he might also know, it faces a real challenge with Hinkley C. What progress is he making in introducing either higher or further education for engineers?
Greg Clark
From the work we did on the Plymouth city deal, I know that my hon. Friend is fully apprised of the need to invest in skills in Plymouth. The Government are working with the Nuclear Industry Council to determine the remit and location of a national nuclear college, and we hope to announce some progress later in the year.
Mr David Willetts (Havant) (Con)
May I welcome the Minister to his post and congratulate him on those excellent figures for participation in university? Will he confirm, however, that many of the best access initiatives, such as bursaries and summer schools, are financed from the income from fees above £6,000 and that if fees were reduced to £6,000, those excellent initiatives, which have improved participation, would have to be closed?
Greg Clark
My right hon. Friend is absolutely right. I pay tribute to him for the work he has done in this field, which is respected on both sides of the House and across all the institutions of higher education. One of the great pleasures of taking this office was to check my desk drawer and discover that there was no note from my predecessor with some unwelcome news. It is a very happy inheritance.
My right hon. Friend is absolutely right: the system we have in place for student finance, which he took through the House, is proving remarkably successful. We have seen record student numbers, and only this week the OECD said that the
“UK is…one of the few”
countries
“that has figured out a sustainable approach to higher education finance”
and that
“that investment…pays off for individuals and tax payers.”
He grasped the nettle and made the reforms, and those reforms are now working.
Mr Liam Byrne (Birmingham, Hodge Hill) (Lab)
I welcome the Minister to his post, and as he rightly acknowledged, he has some big shoes to fill—I, too, pay tribute to his predecessor, the right hon. Member for Havant (Mr Willetts), and the extraordinary work he undertook. I am surprised, however, that he did not leave the new Minister a briefing on the disaster of the student loans system and the £50 billion to £100 billion extra that will now be written off as public sector net debt as a result of the spiralling resource accounting and budgeting charge.
My question today, however, is different. This week, the Minister has to decide whether to abolish the disabled students allowance. All over the country over the next month, disabled students will be applying to Oxbridge and medical schools, and they deserve to know whether they will have good support in place—not just PCs, but people. This week, will he heed the call from vice-chancellors, the National Union of Students and Members on both sides of the House and ensure that disabled students do not have their chance to study—wherever they get into—destroyed by the abolition of that vital allowance?
Greg Clark
I second the praise that the right hon. Gentleman gave to my right hon. Friend the Member for Havant, but it is curious that he should reflect in the way he did on the finances of the system. I would have thought that he of all people might have cause to reflect on the state of the finances. Reading his recent pamphlet, I noticed that he said that to win arguments
“we must show that we will spend taxpayers’ money sensibly, effectively and efficiently.”
I wonder whether, on reflection, he would regard that as consistent with his record in government.
On the disabled students allowance, I think everyone here shares the ambition, as I stated in my first answer, that everyone who is capable of benefiting from a university education should be able to do so. That of course applies forcefully to people with disabilities. The decisions we take on support for people with disabilities will be entirely about making sure that they have the support to be able to pursue their studies to the best of their abilities.
Mr Philip Hollobone (Kettering) (Con)
11. How many registered businesses there were in May 2010; and how many such businesses there are now.
The Minister for Culture and the Digital Economy (Mr Edward Vaizey)
I am delighted to say that Office for National Statistics figures show that there were 2.1 million registered businesses in March 2010, and that now there are 2.17 million.
Mr Hollobone
New businesses are established as a result of brave decisions taken by individuals who are trying to make the most of their own enterprise and initiative. Since the Department has declared Northamptonshire the most enterprising county in the country, is it not now time to praise entrepreneurs such as those who attend the monthly business breakfast club in Kettering run by the Federation of Small Businesses, who have refused to be cowed by the longest and deepest recession since the war and who through their own hard work and initiative are getting Britain back to work?
Mr Vaizey
It does not surprise me at all to hear that Northamptonshire is the most enterprising county in England, because it has one of the most enterprising Members of Parliament, and my hon. Friend continues to innovate in his role. I am delighted that Kettering and Northamptonshire reflect the huge boom in businesses—part of the 400,000 extra businesses overall that we have seen created since the coalition came to power.
Mr David Heath (Somerton and Frome) (LD)
As far as the south-west is concerned, the growth of small businesses will be dependent on four critical infrastructure issues, all of which fall to the Government to decide within the next few months. The first is the road system, the A303; the second is the rail system and communications to the far south-west; the third is flood defences; and the fourth—the Minister will not be surprised to hear me say this—is access to high-speed broadband for all businesses right across the rural areas of the south-west. Will the hon. Gentleman give a commitment to talk to his colleagues in other Departments to make sure that the south-west gets the infrastructure it needs?
Mr Vaizey
I congratulate my hon. Friend on his enterprising approach in getting so many different Departments into one question. I will want to make the case, but it is ultimately the decision of my colleagues in the Department for Transport when it comes to the road structures and of those in the Department for Environment, Food and Rural Affairs when it comes to flood defences. Let me say, however, that broadband roll-out is going incredibly well in the south-west. Cornwall is one of the most well connected counties in England, while Devon and Somerset are not far behind.
Valerie Vaz (Walsall South) (Lab)
12. What steps his Department is taking to ensure that scientific advice carries appropriate weight across government.
The Parliamentary Under-Secretary of State for Business, Innovation and Skills (George Freeman)
UK leadership in science advice to Government is well recognised internationally. Most Departments have a chief scientific adviser, and many have science advisory councils and specific scientific advisory committees on selected subjects. My Department supports the work of the independent Government Office for Science, which works with Departments across Whitehall to ensure that their advisory systems are fit for purpose. The Government’s chief scientific adviser, Sir Mark Walport has close contact with both the supply and demand for science advice across government, and the Government Office for Science publishes guidance on the use of scientific and engineering advice in policy making and a code of practice for scientific advisory committees. Science advice is one of the things Britain does best.
Valerie Vaz
I thank the Minister for his response and welcome him to his post, but the fact is that the science budget has been eroded in real terms. The Minister with two brains was removed, and he had the support of the scientific community. Can the Minister explain how the Government Office for Science can be effective when the chief scientific adviser posts in the Department of Energy and Climate Change and the Department for Transport—two crucial Departments—remain unfilled?
George Freeman
I thank the hon. Lady for her welcome. She talks of cuts in the science budget. Let me put on record again the fact that the Government have protected and ring-fenced the science budget. Let me also take this opportunity to pay tribute to my predecessor, my right hon. Friend the Member for Havant (Mr Willetts), who achieved that success in conjunction with the Chancellor. As for the two Departments that currently do not have scientific advisers, Sir Mark Walport and the Government Office are actively in the process of recruiting and putting in place arrangements to ensure that adequate scientific advice is available.
Ian Swales (Redcar) (LD)
Scientists at Teesside university have come up with a unique method of detecting and ageing blood traces at crime scenes. Will the Minister ensure that that technology is fully used throughout the criminal justice system, and will he join me in congratulating Teesside university on once again being a finalist in the entrepreneurial university of the year awards?
George Freeman
I certainly join the hon. Gentleman is congratulating his constituents on the work that they are doing. Let me also emphasise the importance of Government procurement in supporting innovation, which is one of the Government’s key priorities.
Barry Gardiner (Brent North) (Lab)
The Minister rightly spoke of the importance of having scientific advice available, but it must of course be based on scientific evidence. As he will know, last year the Government consulted on proposals to stop local authorities gathering evidence on the scientific effects of air pollution in their areas. He will also know that, just this year, the Department for Environment, Food and Rural Affairs has said that it will not collect any future scientific data on the badger culls that are taking place. Will the Minister ensure that data that are important as bases for scientific advice are collected across Government?
George Freeman
It is a bit rich for Opposition Members to talk about cuts when we have protected the science budget. We inherited one of the worst crises in the public finances, and we have a duty to correct it.
This country is internationally respected for the level of scientific advice that we put into policy making. Across the board—on badgers, on genetic modification, and on all the other difficult issues that we face—we are basing policy on the best scientific advice. [Interruption.] It ill behoves Opposition Members to criticise our approach. They set the standard in taking advice from spin doctors; we take advice from scientists.
Mr Speaker
I have a sense that the hon. Member for Brent North (Barry Gardiner) feels an Adjournment debate application coming on.
Mr Rob Wilson (Reading East) (Con)
T1. If he will make a statement on his departmental responsibilities.
The Secretary of State for Business, Innovation and Skills (Vince Cable)
Let me begin by paying tribute to three former ministerial colleagues who have left the Department. Appropriate cross-party tributes have already been paid to the right hon. Member for Havant (Mr Willetts), but as I worked with him very closely for four and a half years, I can say that he was a superb colleague who has left a major and constructive legacy. I also pay tribute to the right hon. Member for Sevenoaks (Michael Fallon), who is now the Defence Secretary, and to my noble Friend Viscount Younger of Leckie.
I welcome a series of new colleagues. The new Minister for Universities, Science and Cities is the right hon. Member for Tunbridge Wells (Greg Clark). The new Minister for Culture and the Digital Economy, the hon. Member for Wantage (Mr Vaizey), will be responsible for digital industries and related activities. The Under-Secretary of State for Business, Innovation and Skills, the hon. Member for Mid Norfolk (George Freeman), will be responsible for life sciences, and Baroness Neville-Rolfe is the new Minister responsible for intellectual property.
My Department plays a key role in supporting the rebalancing of the economy through business to deliver growth while increasing skills and learning.
Vince Cable
My Department published some detailed analysis, which I think enjoyed wide consensus. It was objective in relation to the potentially damaging effects not just on business and the British single market, but on research in the United Kingdom. As I said earlier, Scottish university institutions have attracted a disproportionate share of finance for the very good reason that they do excellent research, but that arrangement clearly could not be guaranteed in an independent Scotland.
Mr Chuka Umunna (Streatham) (Lab)
Sir David Barnes, former chief executive officer of AstraZeneca, told us that while companies should manage their tax affairs efficiently, it should not have been the driving force for Pfizer’s proposed takeover of AstraZeneca because it was
“a narrow basis on which to build an enduring and constructive business partnership.”
Does the Business Secretary agree with that general principle in respect of the takeover of important British companies?
Vince Cable
Yes, I do agree with that, and I made that very clear at the time. I think that the response of the Government, as well as of the shareholders of AstraZeneca, was a factor in persuading Pfizer not to pursue that bid.
Mr Umunna
The tax avoidance mechanism—tax inversion—that Pfizer sought to use through that takeover has been one of the main driving forces behind this year’s surge in cross-border deals. However, this week US Treasury Secretary Jack Lew said the Obama Administration would crack down on inversions pending further action by Congress. Does the Business Secretary share my concern that if we see takeovers of British firms being primarily driven by the desire to avoid US tax, there is a real risk of a large flight of capital back to the US when the threatened crackdown comes, leaving important UK companies high and dry?
Vince Cable
Again, I agree with the hon. Gentleman’s basic proposition. As it happens, much of the alarm that was raised some months ago about large American companies taking over British companies or British-based companies on the back of those tax provisions have proved wholly unfounded. He is quite right that takeovers, although they are generally beneficial to the UK economy, should not be driven by artificial short-term tax considerations.
Mark Pawsey (Rugby) (Con)
T3. Businesses in Rugby tell me that the changes this Government have made to the employment tribunal system have encouraged them to expand and take on more staff, and the growth in employment demonstrates that. Does the Secretary of State share my concern that Labour’s proposals to scrap our reforms would mean a return to the bad old days when companies were discouraged from taking on that extra person through fear of getting tied up in a weak or vexatious tribunal claim?
Vince Cable
Indeed, and the world competitiveness report acknowledged that Britain ranked number four in the world in overall attractiveness in labour markets. My hon. Friend is right that the reforms we have introduced are certainly one factor in that we have had a growth of 2 million in private sector jobs since May 2010. One factor that has not been noted, and certainly has not been noted by Opposition Members, is the very large number of cases now being dealt with by ACAS that would otherwise have gone through an expensive and frustrating legal procedure.
Diana Johnson (Kingston upon Hull North) (Lab)
T2. In asking my question, I want to make it clear that I want the Scots to remain our countrymen and women and not to become our competitors. The Government set up the UK Green Investment Bank in 2012 to boost investment in green technology and enterprise across the United Kingdom. With Hull and the Humber area emerging as a major UK centre for green energy and renewables, we would have extended a very warm welcome to having the bank in Hull. However, as we all know, its main headquarters is in Edinburgh, so can the Secretary of State just confirm that the UK Green Investment Bank can only be located within the United Kingdom?
Vince Cable
I think we all share the views that have been expressed across the House: that the United Kingdom is better together for a whole variety of reasons. The green investment bank is functioning very successfully with its current headquarters and operations. I think it has disbursed approaching £1 billion in a wide variety of projects from offshore wind to street lighting systems in Glasgow. It is a very successful initiative of this Government and I trust it will remain so.
Eric Ollerenshaw (Lancaster and Fleetwood) (Con)
T4. Given the importance of superfast broadband to businesses in both rural and urban communities, what is the Department doing about BT’s near-monopoly in contracts, which is leading to BT now missing out whole villages and even sections of Lancaster city in my constituency of Lancaster and Fleetwood?
The Minister for Culture and the Digital Economy (Mr Edward Vaizey)
I am happy to meet my hon. Friend to talk about the specific circumstances in his constituency. I would say to him that our broadband roll-out programme has now covered more than 1 million homes, and we are covering about 40,000 homes a week. We are going flat-out on this, and we are achieving great success.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
May I say that I lament the moving of the right hon. Member for Havant (Mr Willetts)? One of the weaknesses of the parliamentary system is this stupid churn of Ministers, especially the good ones who should have been in the Cabinet and doing their job right through to the election.
May I push the Secretary of State on the subject of entrepreneurs? We need more of them in our country, along with more business start-ups. There are some very good tax incentives at the moment, so will he speak to the Chancellor about spreading the tax relief incentives out beyond the private sector? Let us give equal status to social investment and social enterprises. He will know that, at the moment, the cap is much lower.
Vince Cable
That has been an active subject of discussion with the Chief Secretary to the Treasury. Indeed, we have had a social enterprise day supporting worker-owned enterprises, and a consultation is taking place at the moment on how such activity can be facilitated through the tax system. I note the hon. Gentleman’s comment about the churn of Ministers. I should point out that I have been in my present job longer than anyone since someone called Peter Thorneycroft in the early 1950s.
Oliver Colvile (Plymouth, Sutton and Devonport) (Con)
T5. As my hon. Friend knows, Plymouth is the host of the Peninsula medical school. In the light of the Ashya King case, in which Ashya’s parents had to flee to another country to get treatment for him that was not available in the UK, what plans does he have to accelerate research into new drug and medical technology?
The Parliamentary Under-Secretary of State for Business, Innovation and Skills (George Freeman)
My hon. Friend makes an important point. That case highlights the importance of Britain remaining at the forefront of medical innovation. To that end, we have set out our groundbreaking 10-year life science strategy, and I pay tribute to my predecessor, my right hon. Friend the Member for Havant (Mr Willetts), for that. My central mission in this new role is to ensure that Britain leads the world and is the best place in the world to develop 21st century medicines and health care technologies.
Joan Walley (Stoke-on-Trent North) (Lab)
From his talks with north Staffordshire MPs the Secretary of State knows the importance of the proposed European directive on origin marking. People need to be able to find out exactly where a plate has come from by turning it over, and the directive will be of great importance to the competitiveness of the ceramics sector and to public health standards. The next meeting of the working party on consumer protection and information will take place on either 16 September or 1 October. Will the Minister review his position before that meeting and abandon his opposition to this proposal? Will he also ensure that his officials are working on a full appraisal in order to enable the proposal to go forward?
Vince Cable
The hon. Lady and her colleagues from the ceramics industry constituencies have been very effective in pursuing this issue with me. When she last raised the matter with me, I reopened the question and we have been looking at it carefully. I will report back to her on where we will be positioned in relation to the latest discussions in the European Union.
Miss Anne McIntosh (Thirsk and Malton) (Con)
The Department announced the local growth fund recipient projects in July, and, for some bizarre reason, the A64 was left off the list. This has put a real question mark over the chances for rural economic growth across Ryedale and North Yorkshire. Will the Secretary of State review that decision at the earliest opportunity?
The Minister for Universities, Science and Cities (Greg Clark)
North Yorkshire did pretty well out of the local growth fund. It has the BioVale campus, which I know my hon. Friend is strongly in favour of. Such was the calibre of the projects that we were able to allocate £6 billion of investment. I am now keen to move on to the next set of allocations, and she has just made a strong pitch for investment in her area.
Mr Dennis Skinner (Bolsover) (Lab)
I wonder if the Secretary of State would care to amend the reply he gave to me about when the pits closed. Just for his information, between the end of the pit strike in 1985 and the onset of the Labour Government in 1997, 170 pits were closed, out of less than 200. Those are the figures. They cannot be denied, and if he checks the record he will see that I am speaking the truth. On a second issue, is it not stupid to be getting rid of 3,000 mining jobs in the three pits that I have referred to while at the same time importing more coal from Russia when there are supposed to be sanctions? Is there not a stench of hypocrisy here?
Vince Cable
The hon. Gentleman is, of course, right on the figures. When we came into office there were only three pits left and none of the 170 he mentioned had been reopened, although there was a long period of Labour government during which that could have happened if the economics had been as he describes them. We have been actively involved in the case of these three pits; we have no wish to see a sudden closure and mass redundancies, and we continue to talk to potential commercial parties about it.
Caroline Dinenage (Gosport) (Con)
Businesses in my region really welcome proposals in the Small Business, Enterprise and Employment Bill on prompt payment. However, £46 billion is currently owed to businesses in the UK—that is an increase of £10 billion on last year’s figure—so as the Bill goes forward will Ministers consider making the code even tougher and broadening it to more companies?
Vince Cable
The hon. Lady is right to say that, particularly given the overall problems with access to finance for small and medium-sized companies, the issue of late payment is crucial and that this is happening on a massive scale. We will, in the course of this Bill, be making it much more transparent how larger companies, in particular, make their payments—we will be helping small companies in that way. I am happy to look at how we can strengthen the code, and indeed we are talking to the Institute of Credit Management about how we can do that.
Barry Gardiner (Brent North) (Lab)
Two years ago, figures were released showing that the green economy, although representing only 6% of the wider economy, was responsible for 30% of the growth in the economy. Will the Secretary of State tell us the current figures and, in his new line-up, which Minister has been specifically appointed to be responsible for green economic growth?
Vince Cable
There is a green economy group operating through government. I serve on it, together with the Secretaries of State for Environment, Food and Rural Affairs and for Energy and Climate Change—I believe it has Treasury representation on it, too. We put enormous importance on having a green thread in policy and we have taken major initiatives in that respect, notably through renewable energy innovation, supply chain development and the establishment of the green investment bank.
Andrew Jones (Harrogate and Knaresborough) (Con)
What is the Department doing to make the UK a better place to do business for our already strong pharmaceutical sector? I am particularly thinking about encouraging clinical trials and bringing forward new medicines, which of course will benefit not only our economy, but patients receiving treatment in our NHS?
George Freeman
My hon. Friend makes an important point. As a Minister in the Department of Health and in BIS, it is my job to make sure that we are building a landscape in which the UK is the best place to get quick access to patients, tissues, data and trials. Unless we can get innovations to patients more quickly, not only will we let them down, but, more importantly, we will not attract the investment into 21st century health technologies that we and our patients need.
Richard Graham (Gloucester) (Con)
The Secretary of State rightly highlighted the importance of re-shoring to revitalising our manufacturing and rebalancing our economy. Innovative companies such as Gloucestershire’s Future Advanced Manufacture Ltd discussed with aerospace customers how to manufacture locally parts previously made in the far east, and has done this with success. Does he think that there are more opportunities, with his Department leading, to discuss with the aerospace industry how the big contractors can look at their supply chains and consider re-shoring opportunities through small and medium-sized enterprises?
Vince Cable
The hon. Gentleman is right to say that the aerospace industry is one in which the British supply chain had been badly depleted over the years, and it is now being rebuilt. When I was last in India on a departmental trip I did visit an Indian aerospace company that was relocating to the UK, so this does happen. Through the aerospace growth partnership, which is a key element of the industrial strategy, re-shoring and building up the supply chain is a key element in the long-term planning of the sector.
Mr David Heath (Somerton and Frome) (LD)
May I ask the Secretary of State about the remuneration of university vice-chancellors, because the entry level appears to be about £160,000 a year? There are 127 vice-chancellors receiving more than £200,000 annually, 33 receiving more than £300,000 and four receiving more than £400,000. What is it about running a university that makes it so much more difficult and so much more remunerative than running the country?
Greg Clark
The robust tradition among universities is that they are independent institutions; Ministers do not have the ability to direct them. Universities are now in a competitive environment: they compete for students and with each other for research funds. I am sure that vice-chancellors across the country who are meeting today in Leeds at their annual conference will have the hon. Gentleman’s message relayed to them.
Mr David Willetts (Havant) (Con)
I was hoping to ask the Minister about Glasgow and to confirm that in a nationwide competition, Glasgow city won the funding to get £25 million of investment in smart city technologies. Do we not think that the best way for Glasgow to remain a smart city is for it to remain part of the United Kingdom?
Greg Clark
My right hon. Friend is absolutely right. Not only did Glasgow win that investment, but I was delighted to sign a city deal with it during the summer that involved the establishment of a new centre for stratified medical imaging in that great city. It is one of the advantages of being part of the United Kingdom that the excellence of Scottish institutions allows them to punch above their weight in terms of population and GDP. The question that is being asked in the Scottish research community is why spoil such a huge success story.
Mr David Nuttall (Bury North) (Con)
Thank you, Mr Speaker. When university tuition fees were increased, some feared that it would result in a fall in the numbers applying to enter higher education, particularly those from poorer backgrounds. Will the Minister tell the House whether those fears have proved justified?
Greg Clark
I am grateful to my hon. Friend for giving me the chance to point out that those fears have been completely unjustified. Since 2010, there has been a 17% increase in students from the poorest backgrounds, including an 8% increase in the past year. More students from disadvantaged backgrounds are going to university than ever before, and the gap between the richest and the poorest has never been smaller.
Mr Speaker
Points of order come after business questions rather than during questions.
Sir Bob Russell
The Secretary of State will not be here very long and I would like him to hear my point of order.
Mr Speaker
The hon. Member for Colchester (Sir Bob Russell) may be able to persuade the Secretary of State to return for his important point of order. I am afraid that procedure must take precedence over convenience.