Surplus Target and Corporation Tax

Andrew Bridgen Excerpts

Monday 4th July 2016 Commons Chamber

[Mr Osborne]

First of all, the problems in the financial markets eight years ago hit this country more severely than almost any other country in the world, and the Government at the time take some responsibility for that. Secondly, the challenge we face is one that was delivered by our democracy. It is a democratic outcome that we accept and respect and we have to make it work for our country. I am determined to make that happen.

As the hon. Lady well knows, productivity growth is a challenge in every western democracy at the moment. Indeed, the US is now predicted to have negative productivity growth. Productivity is still growing in the UK, but we need to do more to improve it. Education reform, welfare reform and transport investment are good places to start.

[Andrew Bridgen (North West Leicestershire) (Con)]

From the moment the result of the EU referendum was announced and the British people said that they wanted to leave the European Union, prominent commentators in most areas of the media have revelled in running down the British economy and its future prospects. With employment at a record high and unemployment at a 10-year low, does my right hon. Friend agree that the British economy is well placed to face the future?

[Mr Osborne]

I completely agree with my hon. Friend. We are well placed because we have got behind Britain’s businesses, large and small. The essential decision that we—he and I and our colleagues—took collectively six years ago was to push for a private sector recovery, rather than to continually pump in Government money to try to sustain the economy. That approach has been vindicated by the record numbers of jobs and businesses created and our record growth compared with other advanced economies.

Budget Resolutions and Economic Situation

Andrew Bridgen Excerpts

Tuesday 22nd March 2016 Commons Chamber

[John McDonnell]

No, I have given way enough—I will come back to the hon. Gentleman.

There is scheduled to be a 6% real-terms decline in spending on disability benefits between 2015 and 2020. After that Friday, when we reached the Wednesday of the Budget, we discovered that these cuts to disabled people were being made to pay for capital gains tax cuts benefiting the richest 5% in our society and for corporation tax cuts. Of course, a deep feeling of unfairness was felt in this House, among Members in all parts of it. I welcome the expression of concern by the right hon. Member for Chingford and Woodford Green (Mr Duncan Smith) during that period and his conversion to our cause of opposing these benefit cuts. But the first person to call attention to the scandalous targeting of people with disabilities was my hon. Friend the Member for Oldham East and Saddleworth (Debbie Abrahams). She rightly said, in response to the announcement:

“In coming to this decision, the Tories are yet again ignoring the views of disabled people, carers and experts in the field, trying to press ahead with changes, just two years since the introduction of the system.”

After it became clear that the cuts to PIP were planned as a way to fund tax cuts for the wealthy, my right hon. Friend the leader of the Labour party made this issue a key part of his excellent response to the Budget last week, and he was not alone in doing so. My hon. Friends the Members for Ilford North (Wes Streeting) and for Nottingham East (Chris Leslie) were among several Opposition Members who pressed the Chancellor on the issue, as I did when opening the Budget debate last Thursday. I want to give thanks to everyone on our Benches and across the House who has helped to force this rethink and helped end the worry that thousands of disabled people have been experiencing in the past week.

[Andrew Bridgen (North West Leicestershire) (Con)]

The shadow Chancellor is right about U-turns being embarrassing, but I remember his embarrassing U-turn on the fiscal responsibility charter. Does he regard himself at the moment as a socialist or a Marxist, and does he agree that all that the politics of the far left offers people is an equal share of misery?

[John McDonnell]

This is a debate about the threat of cuts facing some of the most vulnerable people in our society. This is not a time for engaging in student union politics in this Chamber.

By Friday of last week, the Chancellor was facing so much criticism that he needed to find someone to blame. So, in one of the most despicable acts we have witnessed in recent political history, the Chancellor sent out his large team of spin doctors to try to lay the blame on the former Secretary of State for Work and Pensions, the right hon. Member for Chingford and Woodford Green. That was a disgraceful act of betrayal of one of the Chancellor’s own Cabinet colleagues to save his own skin and his leadership hopes.

Oral Answers to Questions

Andrew Bridgen Excerpts

Tuesday 1st March 2016 Commons Chamber

[Mr Osborne]

The former shadow Chancellor is right to point to both the immediate economic shock, which I think is generally accepted—even those who, for perfectly honourable reasons, advocate withdrawal, accept that there would be an immediate economic dislocation—and the longer-term costs. If we tell Britain to make this leap in the dark, we have to be able to answer the question: what is the alternative? How do we reassure the car manufacturer in north-east England that tariffs will not be imposed on its cars, as a result of which it will not be so competitive and there will not be so many jobs in its factory? Those are the questions for this big national debate.

[Andrew Bridgen (North West Leicestershire) (Con)]

Those who wish us to stay in the European Union say on the one hand that we are an insignificant economy and too small to stand on our own, but on the other hand that if we leave the European Union it will cause an economic meltdown around the world. They cannot both be true, Chancellor.

[Mr Osborne]

Our argument is that we will be stronger and better off inside the European Union. That is the positive choice that we face as a country. I, personally, do not think that we should leave the EU, but even those who contemplate doing so should think about this. With the economic situation that the world faces at the moment, and with the geopolitical situation that we face in Europe with Putin on our doorstep and the crisis in the middle east, is this the right moment to leave? My strong advice, the advice of the British Cabinet and the advice of the British Government is that we remain in this reformed EU.

Short Money

Andrew Bridgen Excerpts

Tuesday 23rd February 2016 Commons Chamber

[John Penrose]

I had rather hoped that the request for views would elicit a strong and perhaps constructive response. I am afraid that has not been visible so far, but none the less I hope that that may change between now and the end of the period of the request for views. I also point out to the hon. Gentleman that because we are facing a deficit, time is pressing and we have less fiscal slack to play with.

[Andrew Bridgen (North West Leicestershire) (Con)]

Will the Short money reforms mean that Labour has to name and state the salaries of its special advisers, particularly those who write the Leader of the Opposition’s speeches, because although I do not know their remuneration, I think they are hugely overpaid?

[John Penrose]

Given the level of transparency that is already rightly expected of the Government when employing Spads, for example, it is reasonable to ask for an equivalent level of transparency with regard to how Short money is spent on people such as Damian McBride, who I understand has just rejoined the Labour party’s payroll, and Seumas Milne.

HMRC and Google (Settlement)

Andrew Bridgen Excerpts

Monday 25th January 2016 Commons Chamber

[Mr Gauke]

The statutory rate for Google is exactly the same as the statutory rate for everybody else.

[Andrew Bridgen (North West Leicestershire) (Con)]

Human nature and ingenuity being what they are, from the moment taxes were invented there has always been a difference between the tax that Governments expect to receive and the tax that is actually paid—that is known as the tax gap. Will the Minister explain to the House in what direction the tax gap has been going since we came to office in 2010?

[Mr Gauke]

As a percentage of tax liability, the tax gap has been falling. Corporation tax avoidance, or corporate avoidance, has been falling at an even faster rate.

Oral Answers to Questions

Andrew Bridgen Excerpts

Tuesday 19th January 2016 Commons Chamber

[Harriett Baldwin]

My hon. Friend, who is a very constructive and engaged member of the Treasury Committee, will have the opportunity to ask questions of the acting chief executive and the chair of the FCA on Wednesday. I agree that it is very useful for such a Committee to have pre-appointment hearings with any executive of the FCA.

[Andrew Bridgen (North West Leicestershire) (Con)]

The Symphony interbank communications software, which allows for the permanent deletion of emails, advertises itself as being able to save banks billions of pounds in fines. Will the Minister join my campaign, in conjunction with the Business Secretary, to ensure that the FCA retains the encryption codes for the Symphony software system for seven years, as happens in America?

[Harriett Baldwin]

My hon. Friend asks a salient question. The FCA is investigating this matter, and he will be aware that new rules—the markets in financial instruments directive II—will require firms to keep information for a considerable period, but this is the subject of ongoing discussions.

Oral Answers to Questions

Andrew Bridgen Excerpts

Tuesday 1st December 2015 Commons Chamber

[Greg Hands]

I join the hon. Gentleman in welcoming so many disabled people to Parliament today, and I agree with him about the importance of doing more to help disabled people into work. That is why we extended the access to work scheme and launched the Disability Confident scheme, to ensure that employers better understand the benefits of recruiting and retaining disabled workers, the specialist employability support and the Work and Health programme, which we launched this year.

[Andrew Bridgen (North West Leicestershire) (Con)]

Will the Minister confirm that about 3.2 million people with disabilities are in work now, and that the Government are looking to see that number increase dramatically over the next few years?

[Greg Hands]

My hon. Friend is right. This is one of the most important aspects of the Government’s work. He is correct to say that disability employment is now up to 3.2 million, which is an increase of 340,000 since 2013, up 74% on the year. We are increasing real-terms spending on disability employment by around 15% by the end of this Parliament.

Budget Resolutions and Economic Situation

Andrew Bridgen Excerpts

Monday 13th July 2015 Commons Chamber

[Emma Reynolds]

Indeed, and the Government introduced a similar measure in the last Parliament, but the threshold was £60,000 a year. In their consultation on those changes, the Government said that putting the threshold below £60,000 a year would result in “perverse incentives” and a “disincentive to work”. Why have they suddenly changed their mind, and why was there no mention in the Red Book of the Government’s plan to extend the right to buy? Once again, it fell to the OBR to mention what the Government were not prepared to refer to. It warned that the policy risked adding £60 billion to public debt.

We welcome some measures—for example, the raising of the rent-a-room relief and the tackling of some of the over-generous tax reliefs for private landlords which help to squeeze out first-time buyers—but they are not going to end the housing crisis. Last week the Chancellor and the Business Secretary were busy announcing planning reforms, which unless I have missed something are the responsibility of the Secretary of State. While the Chancellor was plundering the Labour manifesto, the Business Secretary appears to have been pillaging Labour’s housing review. We welcome the following, given that these were our policies anyway: tougher measures to ensure that local areas have a local plan; strengthening the Government’s duty to co-operate; reform of compulsory purchase powers; and a new dispute mechanism for section 106 agreements. But these were only some elements of our Lyons housing review, which is a comprehensive plan to tackle the housing crisis—something that this Government are sorely lacking. Sadly, one thing the Government are not taking forward is Labour’s commitment to zero-carbon homes. Pulling the plug on this policy will damage the house building industry, cost jobs and investment and mean higher energy bills for consumers, and I am wondering how on earth they can justify it.

The Government’s wider proposals announced on Friday also raise a number of questions. We welcome plans to build homes on brownfield sites, but if the Government were serious about building on brownfield why did they withdraw five years ago some of the investment and neighbourhood renewal fund which helped towards the costs of remediating polluted land—a fund that we put in place in our time in government? If brownfield sites are to get automatic planning permission, how will the Government ensure that local communities continue to have a say, that there is sufficient infrastructure for the plans to be delivered, that the quality of new homes is guaranteed, and that section 106 agreements are applied to ensure that developers fulfil affordable homes obligations? Given that a move to a zoning system represents a significant change to the planning system, will the national planning policy framework have to be amended? Will it perhaps be more accurately renamed the “national planning system”? It seems curious that the Conservative party spent so much time and energy attacking Labour’s spatial strategies in the name of localism, yet now appears to be nationalising planning. I cannot keep up with the Secretary of State: is he trying to be Macmillan or Lenin? I know the Secretary of State has been on a political journey from the Social Democratic party to the Conservative party, but this journey is rather unbelievable.

[Andrew Bridgen (North West Leicestershire) (Con)]

Is it still Labour party policy to re-establish the regional development agency, which inflicted the regional spatial strategies on my constituents and many others?

[Emma Reynolds]

We support the local plans. It seemed that the Minister for Housing and Planning was not that bothered about them—I remember an interview he did with Inside Housing in which he said it was not that important whether local areas had local plans—but the Government seem to have done an about-turn on that as I received a nice letter from him today, spelling out how important the local plan process is.

We think it is important for local people to have a say over what goes on in their areas. We have big questions about the Government’s proposals, which we have only just seen and on which we would like more detail. How will the Government still ensure that local people have that say? How will they ensure that local infrastructure is delivered? And how will they ensure that affordable homes are also delivered on some of these sites? Those are serious questions, we would welcome answers to them and we would like to see more details of the proposals that the Government put forward on Friday.

We are facing the biggest housing crisis in a generation. In England, we are building only half the homes we need. I know we have heard from the Mayor of London—perhaps I should call him the hon. Member for Uxbridge and South Ruislip (Boris Johnson)—but in London we are building only one third of the homes we need. We have had the lowest level of home ownership for 30 years under a Government who claim to be a party of home ownership. The Government urgently need to get a grip of this problem. The result of their Budget will be £60 billion of public sector debt added because of their changes and 14,000 fewer affordable homes, according to the OBR. That is hardly a record worthy of Macmillan.

In conclusion, this should have been a Budget to support working people.

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[Alison Thewliss]

The hon. Gentleman will find that the Scottish National party takes its own stance on many issues and does not follow the Labour party.

The problem with market rents is not, as the Red Book implies at paragraph 1.154, with social rents. I believe that, by and large, council and housing association rents are fair, not subsidised. I was glad that the shadow Secretary of State mentioned the proposed pay-to-stay policy, and I agree with a lot of what she said on that. The policy will drive people out of the communities they call home, push out key workers on modest salaries and all but ghettoise swathes of our towns and cities. The proposals are unfair in that local authorities will not see the benefit of the policy, because their share from increased rents will go back to the Exchequer, while local housing associations get to keep the funds. If the Government insist on pursuing this daft policy, they should at least give an even playing field to all housing providers to allow them to invest in new housing.

I note that there is a proposal to end so-called lifetime tenancies. Long tenancies can contribute positively to the fabric of our communities by ensuring that people stay and make their lives in an area and that they belong to it. They are part of what makes renting with a housing association or a local council attractive, as opposed to the uncertainty of the private sector, where people have to move all the time.

[Andrew Bridgen]

The hon. Lady is making her case, but is there anything in the Budget with which she agrees? Does she support the new national living wage and the cut in rents for housing association tenants?

[Alison Thewliss]

I have made it abundantly clear that it is not a living wage; it is a rebadging of the national minimum wage, and it is not good enough. [Interruption.] Would Government Members give me a break?

Long tenancies give a degree of certainty and reduce costs to housing providers, who know that a tenant is there for the long term and do not constantly have to manage the turnover of stock. That is costly for housing associations and local councils to manage, so knowing that a tenant will stay reduces their costs. The Government should think very carefully about this policy’s impact on well-established and strong communities.

This Government seem to be making a further attack on the social rented sector and its tenants, following the distress caused by the bedroom tax. The Joseph Rowntree Foundation has found that only 6% of affected tenants were actually able to move, and that 50% of those who did not move fell into arrears. I am glad that the Scottish Government were able to mitigate that, but it is another example of a policy built to deal with a London problem that did not exist in Scotland, and which simply punishes people for their circumstances. The Scottish Government should not exist simply to mitigate the policies of another Government. That is unfair and unsustainable.

The Government are also in real danger of undermining their own work on city deals. One of the intended outcomes of the Glasgow and Clyde Valley city deal is to help long-term unemployed people back to work, and if the actions of this Tory Government undermine that by slashing benefits and making life harder for people who are looking to work, that will undermine the potential success of the deal. We must co-ordinate and work together. We need job-creating powers in Scotland and more than the simple power to mitigate the wrongheaded approach of this Government.

Although I say that, the hon. Members for North West Leicestershire (Andrew Bridgen) and for Bedford (Richard Fuller) will be glad to find that I welcome the further development of city deals in the Budget. They will go some way to redressing the imbalance in the UK economy, and not before time. Looking at the rhetoric about the northern powerhouse, I would suggest that it is perhaps a final admission of the fundamental failure of the UK economy. London is indeed the giant suction machine that the former Business Secretary spoke of, and the map on page 67 illustrates that investment in the south and east of England is focused through the prism of how best to serve London rather than to build up those areas in their own right and advance the economy.

I have attended Adjournment and Westminster Hall debates on city deals for Aberdeen and Cardiff and I listened with great interest to the debate on elected mayors. I have also followed discussions on the Cities and Local Government Devolution Bill in the other place. I am keen to see the development of deals that meet local needs and have been disappointed in some of those debates to find that the wishes of local people seemed to rank behind the pet project of some local authorities and the requirements of business. If more powers come to cities, it should be to serve the ambitions and priorities of local people to raise their opportunities in life and to make things better according to local demands. They must also be the devolution of funding to match those powers, as devolution and the reform of local government cannot be a cover for passing on cuts.

I am of course delighted to see continued commitment to the city deal for Glasgow and Clyde Valley, which the UK Government established in partnership with the Scottish Government, each putting in £500 million, with £130 million coming from the eight local authorities involved. I hope, too, that the deal will involve listening to local people. It is early days and the work of the joint board is just getting under way. I commend the fledgling city deals for Aberdeen and Inverness, which are mentioned in the Red Book, and ask that attention be paid to potential deals in Scotland’s other cities.

In considering city deals, we must also consider how we support areas outwith large conurbations. Rural areas should not be left behind, and if they are it will only exacerbate the difficulties of rurality. The approach in Scotland has been about collaboration through the Scottish Cities Alliance rather than cutthroat competition, and I believe that that is more productive. Setting regions against one another and failing to seize the opportunities to make links will only waste money in the long run. I note with interest that an Oyster-type system is being considered for Manchester. That is of course welcome, but it should not operate in a way that builds barriers between different regions. There is much opportunity for interoperability rather than running in entirely different directions and I note with some concern the comments made by the hon. Member for Bromley and Chislehurst (Robert Neill) about incentives for businesses. If we are not careful, that could lead to a race to the bottom on standards in different areas.

I would also guard against the temptation to reach for shiny prestige projects at the expense of more sustainable projects that benefit local communities and urge that further attention is paid to the importance of community benefit policies within public contracts. They were used effectively in Glasgow during the Commonwealth games and on other projects and are a simple way to ensure that local people get jobs, training and investment in every large or small infrastructure project that comes along.

A Westminster Hall debate last week touched on the fact that elected mayors had been rejected in some areas in local referendums. It would seem to me to be unwise to overrule that democratic right, but the Under-Secretary of State for Communities and Local Government, the hon. Member for Nuneaton (Mr Jones), said:

“I reiterate that where there is a request for the ambitious devolution of a suite of powers to a combined authority, there must be a metro mayor, but no city will be forced to take on those powers or to have a metro mayor, just as no county will be forced to make any governance changes.”—[Official Report, 9 July 2015; Vol. 598, c. 187WH.]

That seems to make no sense and to disrespect local democracy. People can have the funding, but only if they have the mayor. If people do not want a local mayor and think that the power is better vested in their local authority and local democracy, the Government should respect that. Members might also like to note that there is no such obligation for the Glasgow and Clyde Valley plan to come with an elected mayor.

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[Jonathan Ashworth (Leicester South) (Lab)]

Like my right hon. Friend the Member for Wolverhampton South East (Mr McFadden), I shall start by making a few observations about the state of the public finances.

When the Chancellor delivered his Budget speech last week it struck me that that was the fifth time he has had to come to this House and admit he has got his targets on balancing the books wrong. We all recall that in 2010 the Chancellor promised to balance the books by 2015; he failed. Just two months ago the Conservative party’s manifesto told us it would balance the books by 2018-19, yet just two months later the Chancellor came to the House and told us he is now going to balance the books by 2019-20. That effectively means that since the March Budget the Chancellor has pencilled in £18 billion more in borrowing, and he is balancing the books by 2020 by changing the profile of his public spending cuts and increasing taxes by £6.5 billion. These were not figures we heard much of in the general election campaign.

Although the Chancellor is smoothing out these public spending cuts, they are still deep. Public expenditure will have been cut by a third since 2010. By 2019-20 we will have seen £19 billion in cuts and we know that a large proportion of the cuts will fall on local government. Leicester city council is expected to find £54 million in savings per year over the next few years. It faces deep cuts but it will have to pick up the pieces of a deeply regressive Budget.

[Andrew Bridgen]

Would the hon. Gentleman support the Leicester and Leicestershire combined authority’s bid that is currently with the Secretary of State?

[Jonathan Ashworth]

Of course I would support Leicester and Leicestershire working together. We have a mayor in Leicester. I am sad that Leicester Conservatives oppose that. I hope the hon. Gentleman will support me in the campaign to get the Government to deliver on their promise on midland main line electrification, which they have broken, as he knows.

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[Andrew Bridgen (North West Leicestershire) (Con)]

It is a pleasure to speak in a debate in which there have been two excellent maiden speeches by my hon. Friends the Members for Chippenham (Michelle Donelan) and for Somerton and Frome (David Warburton).

There has been much talk about the northern powerhouse, which is, quite rightly, a priority for this Government. I wish to talk about the midlands engine, another key priority, which is powering a significant proportion of the very welcome growth that is being recorded under the stewardship of my right hon. Friend the Chancellor of the Exchequer. The east midlands has a higher proportion of its regional GDP in manufacturing and a higher proportion of those in employment working in manufacturing industries than any other region of our great nation.

My constituency and those that surround it are achieving some of the highest growth rates in the country, which is due in part to infrastructure investments and decisions made by the previous Conservative Government back in the ’80s and ’90s. The instigation of the new national forest and the development of the M42/A42 corridor have allowed my area, and many of the surrounding constituencies, to move on from our coalmining past and build a new economic model, using the huge advantage of our geographic location—at the very centre of the country—our hard-working constituents, and our minerals and other natural resources. Such advantages have seen us become a hub for distribution, which has seen rapid growth over recent years as this Government’s long-term economic plan bears fruit.

This Government, in the great Conservative tradition, are laying the foundations for growth in constituencies of the east midlands. I welcome the Chancellor’s important announcement that fuel duty is to be frozen again. When Labour was in power, it saw fuel duty as nothing more than a cash cow in its war on the motorist. Thanks to the way in which this Government have brought the public finances under control, we have kept the price of fuel down, which benefits my semi-rural constituency. We have no railway stations, so a car is not a luxury, but a necessity. The freeze provides stability to the distribution firms in my constituency, many of which operate in a hub around East Midlands airport. It should be borne in mind that more than 80% of goods are transported by road. By keeping down the price of fuel, we are keeping down inflation and the cost of living across the country.

Thousands of jobs in my constituency are dependent on East Midlands airport, and I welcome the Government’s recognition that action may well be required when air passenger duty rates are devolved to the Scottish Parliament. I believe there is a case for going far further on air passenger duty. The UK has the highest air travel tax anywhere in the world, which puts the country at a disadvantage in the global race. If the Scottish Government were to cut the rate of APD by half, the rest of the UK would be left at a severe competitive disadvantage, with English companies and families paying more to do business or go on holiday than their Scottish counterparts. That would be fundamentally unfair.

[Alison Thewliss]

It will be a terrible shame if the UK Government have to mitigate the actions of another Government. Now the hon. Gentleman might know how that feels to the Scottish people.

[Andrew Bridgen]

If the Scottish Government decided to cut APD, that would be tax competition and it would behove the British Government to respond, or we would see airports such as Newcastle and possibly Manchester put under severe pressure. I will urge the Treasury to review APD rates and consider the effects that this could have on decisions made in Scotland. I will also ask the Treasury to look at the effect of reducing air passenger duty for the under-12s and under-16s next year, which has already gone through. When a tax seen as excessively high is reduced, that is often followed by an increase in activity. That reduction will not cost £70 million, because far more families with children will take holidays from the UK.

On the area around the airport, I welcome the fact that the Government are inviting bids for a new round of enterprise zones, as I believe a bid will be coming from my district and the local enterprise partnership to encourage growth and jobs in the area and to take advantage of infrastructure improvements, such as the dualling of the A453 from my constituency to Nottingham. This is a scheme that has been spoken about since before I had a driving licence—a long time ago—but has been delivered by a Conservative-led Government. I look forward to going, this time next week, to the opening of the new dual carriageway to Nottingham.

I welcome the progress being made on the devolution of powers, and the fact that Leicester and Leicestershire are one of the two east midlands combined authority proposal bids that the Government have received. From speaking to those involved, I know that there is great enthusiasm for and interest in this bid in both the county and the city, and I hope this can be translated into action, which will benefit all the people living in Leicester and Leicestershire.

We have a productivity gap in the UK. It should be noted that if the UK matched the productivity of the USA, GDP would be some 31% higher, equating to an extra £21,000 per annum per household. We therefore need investment in skills and infrastructure to narrow this gap, and I support the innovative move this Government are considering to deliver that. A combined authority in my county could contribute to that. Through devolution to such local bodies, we can respond to infrastructure issues and skills shortages far more rapidly and effectively than can officials in Whitehall. I look forward to funds flowing to the regions for such projects.

I welcome the Government’s actions on the development of brownfield sites and on road building, which will be of huge benefit to the building and mineral industries and the two large brick factories in my constituency.

Overall, the Budget moves us another step away from the centralised, welfare-dependent client state created by Labour Governments to a productive economy based on low taxes, high skills, high wages and devolved decision making, and it gives this Conservative Government the opportunity to institute long-term economic and infrastructure decisions in the same way as the previous Conservative Government did, which served my constituency so well and laid the economic foundations that are now being built on, ensuring that the midlands engine is firing on all cylinders.

Productivity

Andrew Bridgen Excerpts

Wednesday 17th June 2015 Commons Chamber

[Chris Leslie]

We can see that the problem is particularly stark when we make those international comparisons. Our productivity growth rate has plummeted to the second worst in the G7. The UK was ranked 29th out of 36 OECD countries for GDP growth between 2010 and 2014. My hon. Friend makes an important point.

[Andrew Bridgen (North West Leicestershire) (Con)]

rose—

[Mr Jim Cunningham (Coventry South) (Lab)]

Will my hon. Friend give way?

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[Chris Leslie]

The hon. Member for North West Leicestershire (Andrew Bridgen) was on his feet first, and I would not want to pick the right hon. Gentleman before him.

[Andrew Bridgen]

The shadow Chancellor talks about productivity and the need to invest in plant and machinery, and the need for cross-Chamber support, to improve our productivity. Does he therefore support the Conservative Government’s maintenance or increase of capital allowances for businesses, giving them a clear incentive to invest in their businesses?

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[Greg Hands]

My hon. Friend is quite right. Labour seems not to be learning the lessons of the general election five weeks ago. Encouraging enterprise and promoting sound public finances by dealing with the deficit are extremely important, so I entirely agree.

[Andrew Bridgen]

At least twice during his opening speech the shadow Chancellor said that we are now seeing highly skilled employees replaced by low-skilled employees. Does my right hon. Friend agree that the shadow Chancellor should not talk himself down like that?

[Greg Hands]

My hon. Friend makes his point in his usual way. All that I can say—

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[Bill Esterson]

That is an excellent point. The uncertainty for business, which has contributed to a lack of investment and the other problems that I have touched on, is not helped by the treatment of small and medium-sized businesses by some larger businesses in the supply chain.

[Andrew Bridgen]

It is certainly true that business hates uncertainty. There was a drop-off in business investment in the run-up to the general election, but that was because of the uncertainty over who would be in government and the fear of business that there would be a hard-left Labour Government.

[Bill Esterson]

I take it from the hon. Gentleman’s intervention that he will support, with every fibre of his being, the yes campaign in the EU referendum to avoid the damage that would be done if this country left the EU. I welcome his conversion to the cause.

Government Members have talked about the jobs that were created under the coalition over the past five years. Let us be clear that those jobs were created by private businesses, not by the Government. I think that the Government have shown a worrying complacency, given that we have had the weakest recovery since the war and that productivity has been so low over the past seven years, decreasing by 0.5%. It has been pointed out that that productivity has gradually started to inch up, which is welcome.

In the analysis by Government Members, I see little evidence of skills development for workers in predominantly low-paid jobs. In my constituency, a third of people in work now are paid less than a living wage. That is not a recipe for high living standards or an improvement in their day-to-day lives. We need an increase in productivity. That will help to lead to higher paid jobs, and that comes from skills and from the kind of investment I have talked about.

We heard from another colleague that the scale of the problem with productivity in this country is that output per hour is 17% below the G7 average and 31% below that of the United States. Unless that picks up, the sorts of problems I have mentioned with the very high number of low-paid jobs will continue. We will end up with an economy that relies on low-skill, low-wage employment and see a continued fall in living standards. Let us remember that since 2010, people in work are on average worse off by £2,000 a year. There is a very long way to go to make up that shortfall.

I want to talk about one particular skill that historically we have really struggled with: management. I want to talk about the role of managers and leaders in motivating and getting the best out of staff and organisations, whether in the public or private sectors, and the role that that has to play in raising productivity. Some 85% of people in a professional occupation have a higher education qualification, but only 44% of people in management roles have a higher education qualification. We just do not regard management and leadership in this country as high-quality roles. We do not treat them with the importance they deserve. There is not an automatic understanding that management and leadership are skills in their own right, and that leads to a number of problems. We need to regard them far more highly.

Before I came to this place five years ago, I worked in training and development and went into a lot of large organisations. Typically, the problem was with middle-ranking management—or that was the analysis given by senior managers. We often discovered that in fact the real difficulty lay with the senior management and leadership as well. That is a real problem. The importance of having good management and good leadership should not be understated in any discussion of productivity. Employee performance is linked to how well people are looked after. Yes, remuneration is important, but often it is the motivation, the way they are treated and the way that management behaves that are critical. [Interruption.]My hon. Friend the Member for Blaydon (Mr Anderson) behind me uses the right word: respect. That is absolutely crucial. If we want to improve productivity and compete internationally, we have to look at management as a skill, along with all the other factors that hon. Members have mentioned.

Landfill Tax (No. 2)

Andrew Bridgen Excerpts

Tuesday 16th June 2015 Commons Chamber

[Damian Hinds]

We have had a good, if short, debate on this important matter. Let me deal with some of the points that have been raised.

The whole point of landfill tax is to reduce landfill, and it has been successful in that regard. We have seen the amount of waste in landfill drop by 70% since 2000 and average household recycling rates have risen from 18% to 44%. Landfill tax is not the only cause of those beneficial changes, obviously, but it is one cause.

The hon. Member for North Durham (Mr Jones) is right to identify aspects of fraud that will not be eradicated by the measure, but that does not mean that the measure is not beneficial; it deals with a large part of fraud. Wider enforcement is also important, and I am assured that HMRC is on top of that. He and I are to meet in a couple of days, and I look forward to discussing in more detail particular issues that arise in his constituency and elsewhere.

[Andrew Bridgen (North West Leicestershire) (Con)]

Does my hon. Friend the Minister appreciate that it is a given that the higher the tax, the greater the incentive for people in the industry to evade the tax? What will the sampling regime be? Who will take samples of the waste and determine what grade of landfill tax is applicable?

[Damian Hinds]

Landfill operators must take a certain number of samples per customer load, depending on the risk profile of that customer. So if the operator has never had a difficulty with a customer before, rightly they should use a light touch, but where there have been problems before, that frequency should increase. There is a loss on ignition test to find out what volume of the sample is degradable and in its steady state there is a limit of 10%, but for a limited period of a year, to allow industry to make the transition, a slightly higher rate of 15% will be allowed.

The hon. Member for Wirral South (Alison McGovern) asked about conducting the tests. The key factor is laboratory capacity. The samples go off to accredited labs, and I have no reason to believe that there is a problem with capacity. It is a commercial line of business.

HMRC compliance in general is a wider issue. HMRC cannot be in every operator’s yard at every moment, but it treats all forms of tax evasion extremely seriously and has a statutory duty to ensure that the correct taxes are collected, as well as a direct incentive to do so.

[Andrew Bridgen]

Can the Minister see that the next area of potential tax evasion will be the sampling regime and what samples are taken from a large load of waste?

[Damian Hinds]

There is probably no fool-proof or fraud-proof system of taking samples. People will seek to get around the regime, but the challenge in compliance is to interrupt that activity and stop it. In the past 15 months HMRC has accelerated its response to tax aspects of waste crime. It has a range of responses, including criminal and civil investigations, and the national waste sector task force takes cross-tax approaches.