David Simpson (Upper Bann) (DUP)
6. What steps the Government are taking to tackle cash retention within the construction sector.
The Minister for Skills (Nick Boles)
We are working with the industry through the Construction Leadership Council and its supply chain payment charter, which includes a commitment to zero retentions by 2025.
David Simpson
I am sure the Minister will agree that cash retention is having a major difficulty on the cash flow of SMEs across the United Kingdom. Surely some form of sanctions needs to be in place to alleviate cash-flow problems when companies are going out of business.
Nick Boles
I certainly agree that there are some problems with the system, but it is also a fairly deeply embedded feature of the construction industry. We must act on the basis of evidence, which is why the Government will commission an analysis of the cost and benefit of retention payments to inform future action. We endorse entirely the Construction Leadership Council’s commitment to remove such payments from the industry by 2025.
Chris Leslie (Nottingham East) (Lab/Co-op)
With last week’s construction output figures going backwards, and with so many small construction firms facing cash-flow difficulties, is it any wonder that the house building programme in this country has been so lamentable? Do we need to do more to help SME construction firms, for example with a help-to-build underwrite of some sort behind that loan finance for small building companies? We should not just avoid adding to borrowing; we should make a real difference for those construction firms, particularly small ones.
Nick Boles
We certainly want to support a range of construction firms, both small and large, but it would have been nice if the hon. Gentleman had taken advantage of his Back-Bench position to reflect a little more openly and honestly on the legacy of the last Labour Government, which saw the construction industry crushed. Housing starts are up by 50% from the low that was achieved at the end of the last Labour Government. There is a lot further to go, and we will work closely with construction firms to make that progress, but let us be honest about where the industry started.
Ms Margaret Ritchie (South Down) (SDLP)
Will the Minister and his colleagues hold a range of discussions with their colleagues in the Treasury and Her Majesty’s Revenue and Customs, to discuss the need to reinstate the aggregate levy scheme, and particularly the exemptions, as that would assist the construction sector and the cash-flow situation for industries in Northern Ireland?
Nick Boles
I would be happy to invite the hon. Lady to meet me to discuss that in detail.
Stephen Kinnock (Aberavon) (Lab)
7. What recent assessment he has made of the effectiveness of the Government’s strategic support for industries and sectors.
Heidi Allen (South Cambridgeshire) (Con)
14. What steps he is taking to promote regional growth.
The Parliamentary Under-Secretary of State for Life Sciences (George Freeman)
The Government remain totally committed to the rebalancing of our economy through unleashing the economic potential of our cities and regions. We have invested in infrastructure, connectivity, and science and innovation across the country, not least in the northern powerhouse and most recently with the £235 million that the Sir Henry Royce Institute focused on research into advanced materials. We have agreed 28 city deals, 39 growth deals and a total investment of £7.7 billion, including the transformation of the Greater Manchester devolution agreement. It is working: the north-east and the north-west are now cited as the fastest-growing regions in the country. We are going further and are now discussing a further 38 radical devolution proposals to empower local regions.
Rehman Chishti
On regional growth, the Government have committed £7 billion of the £12 billion regional growth fund, including £488 million to my own South East local enterprise partnership, which is creating more jobs, homes and growth. However, when does the Minister expect the remaining £5 billion to be allocated? Does he expect the overall pot to grow?
George Freeman
My hon. Friend is right and I take this opportunity to congratulate him on his leadership locally in helping to secure that £7 billion and the £488 million that has gone into the Thames Gateway in north Kent. Decisions on the remainder of the RGF will be made in the spending review, but I will point out that we restated in the spending review guidance our commitment to the full £12 billion and to a radical package of devolution across the country.
Kevin Hollinrake
Regional growth in Thirsk and Malton depends largely on access to superfast broadband. We are delighted that 95% of premises will receive superfast broadband by 2017, but the final 5% percent is without doubt the biggest challenge. Many businesses cannot wait until 2020 to get access to superfast broadband. Will the Minister confirm that he will look at ways to open up the market to create more competition for the final 5%, thereby increasing the pace of roll-out?
George Freeman
My hon. Friend makes an excellent point. It is great news that, as a result of our £800 million programme, 95% of the country will have superfast broadband by 2017. However, the final 5% or 10% in the most rural areas require special attention, which is why my hon. Friend the Minister for the Digital Economy is actively looking at a package of measures to help the most marginal rural constituencies. We have launched an £8 million pilot programme looking at vouchers, mobile broadband and a range of innovative schemes, including social investment finance models.
Heidi Allen
The Minister might recall that a few weeks ago I mentioned to him the incredible economic growth in Cambridgeshire which risked being hampered because of infrastructure constraints. We are ready to present an innovative private funding model to him, so can I secure some time in his diary to share the proposals with him?
George Freeman
I would be delighted to give my hon. Friend a date. She makes an important point, and I welcome the ambition set out in the “Case for Cambridge” manifesto. Having sat myself on the board of the Greater Cambridge partnership, I well know that Cambridge is now a global technology cluster. Only last week, I went to visit AstraZeneca’s £500 million global research and development hub site. It is a city that needs global infrastructure, and we welcome the ambition set out in the manifesto.
Mary Creagh (Wakefield) (Lab)
Regional growth in Yorkshire and the north-east is dependent on good transport links, so the cancellation of electrification between Leeds and Manchester and Leeds and Newcastle was a bitter blow to our economy. May I urge the Minister to urge the Chancellor to review the decision in the autumn statement and to look at the skills capacity in the transport sector, which is pushing up costs and prices in the electrification area?
George Freeman
First, the programme has not been cancelled; it is paused. It is a massive programme. [Laughter.] Opposition Members do not know much about running major projects. It is absolutely necessary that we get it right. The howls of derision opposite reveal their embarrassment at our success. You would think we would get more thanks for what we have done: a £7 billion regional growth fund; city deals across the country; 11,000 small and medium-sized businesses helped; and 130,000 jobs created, not least in the north.
Jo Cox (Batley and Spen) (Lab)
The Minister will know that the suspension of the business rates revaluation in 2013 has had different effects in different parts of the country. Will he commit to investigating how businesses in my constituency, like so many in the north, were disadvantaged by the decision and find a way to redress this north-south divide?
George Freeman
I would be delighted to feed the hon. Lady’s comments into the Government’s review of business rates, which is already in hand. We recognise that particularly in many small towns business rates have a crippling effect on the high street. That is why we have launched a major review, which is ongoing and live at the moment.
Toby Perkins (Chesterfield) (Lab)
In response to my hon. Friend the Member for Wakefield (Mary Creagh), the Minister did not talk about the midland main line, but gave a list of other things he was doing. The cancellation of the midland main line electrification is a significant blow to south Yorkshire, north Derbyshire and the east midlands. What representations has the Department made on the impact on businesses and regional growth of not electrifying the midland main line? Will he respond to the question and tell us what is actually happening?
George Freeman
I dealt with that point. The midland main line is an important strategic rail route, and we are pausing to make sure we get it right. We will take no lectures from the Labour party on economic competence, when its own shadow Chancellor, according to his biography, is committed to the overthrow of capitalism.
Mrs Anne-Marie Trevelyan (Berwick-upon-Tweed) (Con)
I am aware that the Life Sciences Minister is creating a specialist life sciences enterprise zone to support sites across the UK hit by the global pharmaceutical corporate restructuring. Will he commit to providing every possible support to Covance, a pharmaceutical company in Alnwick, in my constituency, where more than 140 scientists’ jobs are at risk?
George Freeman
My hon. Friend has raised this matter with me already, and the Office for Life Sciences stands ready and is taking a close interest. We have already made contact with the local authority and will offer every support we can to its bid to make sure the site remains viable and that we protect local jobs.
Peter Grant (Glenrothes) (SNP)
10. What assessment he has made of the potential effect on businesses of the UK leaving the EU.
David Rutley (Macclesfield) (Con)
T7. I welcome the steps being taken by the Under-Secretary of State for Life Sciences to accelerate the adoption of new, properly tested medical treatments in the NHS. Can he confirm that this not only has tangible benefits for patients, but also helps underpin the strength of the life science sector in north-east Cheshire and across the country?
The Parliamentary Under-Secretary of State for Life Sciences (George Freeman)
The accelerated access review that we have launched is about unleashing the power of the NHS to support 21st-century drug development and the test beds putting technology into practice in our health system. As my hon. Friend says, this has benefits not just for patients, but for industry, and not least for the north-west. During my visit to the Alderley site with my hon. Friend in the spring, I saw at first hand the power of that cluster in advanced medicines manufacturing and technology, and I think it has a very bright future in 21st-century life sciences.
Ian Mearns (Gateshead) (Lab)
T8. With only 6% of 16 to 18-year-olds going into apprenticeships, may I ask the Secretary of State what specific steps he is taking to ensure that the 3 million apprenticeships that the Government hope to create are of good quality, are quality assured and have proper qualifications that will lead to increasing the trainee’s career prospects and are not used, as we are currently seeing in the north-east, as a ruse by less scrupulous employers to employ young people on cheap wages?
The Minister for Skills (Nick Boles)
The hon. Gentleman will know that under the previous Government we had apprenticeships that did not even involve an employer and that lasted a few months. This Government have introduced a 12-month minimum. They have put employers in charge of developing apprenticeship standards so that apprentices learn skills that employers value, and they are introducing an apprenticeship levy to ensure that there is funding for the 3 million apprenticeships that will benefit his constituents.
Chris Skidmore (Kingswood) (Con)
T9. The current law allows for strikes to be called by unions on the basis of a mandate for industrial action that was secured up to two years ago. That is unfair on those whose lives are inconvenienced by strikes on which a vote was taken years ago. Does my hon. Friend agree —[Interruption.] The Corbynistas on the Opposition Benches should calm down. Does he agree that strikes should take place only on the basis of a current mandate?
Mr Speaker
I do not think that the hon. Member for Huddersfield (Mr Sheerman) has ever previously been so described.
Nick Boles
My hon. Friend is absolutely right. There was a National Union of Teachers strike in 2014 that closed 1,500 schools and colleges. It was based on a mandate from two years before, and it had secured only 27% turnout in the ballot. That is wrong. We are changing that, which is why I am delighted that the Bill passed its Second Reading so handsomely yesterday.
Mr Iain Wright (Hartlepool) (Lab)
In his written statement of 20 July, the Minister of State for Skills announced that the aim of area-based reviews of post-16 provision would be to create “fewer, larger” providers, and that colleges would remain “independent institutions.” Will the Minister explain how those two statements demonstrate policy coherence or indeed any logic at all? Will he confirm that the only means by which he can reconcile those statements is by cutting off funds to starve colleges into submission. Is that what he will do?
Nick Boles
I am slightly surprised at the hon. Gentleman who is a great man and a great Chair of the Business, Innovation and Skills Committee. He knows full well that it has required no arm twisting or strong arming by Government to encourage lots of colleges to combine with each other to form very successful groups. Manchester college and others are great examples of it. It is that kind of sensible consolidation to increase the strength of the college system that we will be encouraging through the area reviews.
Will Quince (Colchester) (Con)
At the weekend, my wife and I visited Bill’s, which is a new restaurant in Colchester and part of a large chain. At the end of the evening the bill had an automatic 10% gratuity, which the staff member said that they did not receive. Does my hon. Friend agree that the public expect staff members to get the tips in recognition for the service rendered?
Chi Onwurah (Newcastle upon Tyne Central) (Lab)
Over the summer, we have seen example after example of consumers’ data—credit card details, travel records or dating preferences—being hacked or shared without their permission. What is the Minister doing to ensure that consumers can own and control their own data?
Nick Boles
I am very happy to talk to the hon. Lady who has a great deal of expertise in this area to take ideas from her. [Interruption.] Yes, I do believe in learning from those on the Opposition Benches on occasion about how we can do better on this important issue.
Matt Warman (Boston and Skegness) (Con)
Many of my constituents are employed on the minimum wage, with an average salary of £15,000 in Boston and Skegness. Has the Minister made an assessment of what impact the national living wage will have on my constituency?
Nick Boles
I am delighted to remind the House that from the beginning of October the national minimum wage, which will benefit all my hon. Friend’s constituents over the age of 18, will go up by 3%. That is the highest increase since 2006. Next April, the national living wage will come in, and it will give his constituents over the age of 25 a significant benefit. That is the result of this Government’s economic plan working. [Interruption.] It is benefiting working people throughout the country, and I would have thought that the Labour party, which used to stand for working people, would support it.
Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)
The Office for National Statistics has stated that in July our manufacturing output dropped, our exports—particularly to the emerging markets—dropped and that confidence levels among our manufacturers was very low. Given that the Chancellor said in 2011 that he was backing the “march of the makers”, what additional measures will the Minister take to ensure that that boast can become a reality?
Daniel Zeichner (Cambridge) (Lab)
Last week the World Economic Forum published its “Inclusive Growth and Development Report”, which states that
“efforts are required to improve access to education as well as its quality, which would be important for tackling…the low levels of social mobility in the country.”
What efforts is the Secretary of State making to achieve that?
Nick Boles
The hon. Gentleman might not have noticed, but we are investing a huge amount of effort and money, through an apprenticeship levy that will be coming in in 2017, in the expansion and improvement of apprenticeships to create opportunities for young people and people in later life. I very much look forward to his contributing to the debate on this subject and supporting the apprenticeship levy in the Lobby.