Covid-19: Business Interruption Loans

Baroness Morgan of Cotes Excerpts

Wednesday 22nd April 2020 Lords Chamber

[Lord Callanan]

The noble Lord makes a very good point. As I have said, we have already introduced a number of technical changes to the scheme—obviously it was introduced very rapidly. We are keeping all aspects of it under review. The one that he has mentioned is important; we are looking at bringing in new lenders as soon as possible, including Funding Circle, which specialises in smaller loans for companies such as those he talks about. To answer his question: yes, we are keeping this under review, we are seeking to get new lenders accredited as quickly as possible, and we are keeping all other aspects of the scheme under review as well.

[Baroness Morgan of Cotes (Con)]

My Lords, no one can doubt the Government’s commitment to bridging and helping SMEs bridge these particular unprecedented circumstances but, to follow on from the question from the noble Lord, Lord Fox, what are the Government doing to work closely with the British Business Bank and encourage it to dramatically widen the circle of lenders and, in particular, to embrace the UK’s fintech sector, which can offer so much in these circumstances?

[Lord Callanan]

My noble friend makes a very good point. As I said in response to an earlier question, we are looking to expand the pool of lenders as quickly as possible and at Funding Circle. We are working closely with the British Business Bank to make sure that all aspects of the SME market are serviced. The BBB has put in place substantial additional resource to assist with processing applications from new lenders as quickly as possible. On 11 April four new lenders were accredited, and we are looking to get the circle expanded as quickly as possible.

Oral Answers to Questions

Baroness Morgan of Cotes Excerpts

Tuesday 16th July 2019 Commons Chamber

[Greg Clark]

I am sure the hon. Gentleman welcomes the commitment given by Vauxhall’s owners to invest in Ellesmere Port, but he is absolutely right that they have said that that depends on a successful resolution of Brexit that means Vauxhall can continue to trade without tariffs and friction with the rest of the European Union. That reinforces how vital it is to secure such a deal.

[Nicky Morgan (Loughborough) (Con)]

13. What steps the Government are taking to help improve the viability of fuel cell manufacturing in the UK.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Andrew Stephenson)]

We provide support through Innovate UK for early-stage fuel cell technologies, and through the Advanced Propulsion Centre and the energy entrepreneurs fund as those technologies mature towards the market. Our £23 million hydrogen for transport programme is expanding refuelling infrastructure, and fuel cell vehicles are eligible for consumer incentives, which helps to increase demand. Two weeks ago, I was at No. 10 with Intelligent Energy, a company in my right hon. Friend’s constituency, considering further opportunities for fuel cell deployment.

[Nicky Morgan]

I thank the Minister very much indeed for that answer; it sounds almost as if he knew I was going to raise Intelligent Energy, which is based in my constituency and, as he obviously knows, manufactures hydrogen fuel cells, having developed the technology. Will he confirm that the Government are technology neutral when it comes to identifying future technologies? To follow on from the previous question, do the Minister and the Department appreciate the opportunities for factories where diesel engines are no longer going to be manufactured to get into the manufacture of the next generation of engines, which should be fuelled by hydrogen fuel cells?

[Andrew Stephenson]

I agree strongly with my right hon. Friend: there is huge potential for the auto sector. The Government are committed to policies that are technology neutral as we achieve the ambitions that we set out in the Road to Zero strategy around a year ago. The Government support the development of hydrogen as a transport fuel and we are in step with international progress. However, we acknowledge that we need to go further and faster in all different types of technologies.

Nissan in Sunderland

Baroness Morgan of Cotes Excerpts

Monday 4th February 2019 Commons Chamber

[Greg Clark]

One of the pleasures of dealing with the automotive industry in the UK is that it is one of the most advanced and most capable in the world in innovation. We are working with the sector, through our industry strategy, to be the leading place in the world, and our work not just for the discovery of new battery technologies, but for manufacturing, and the testbeds that we have put in place for connected and autonomous vehicles make Britain the place in the world that people come to for innovation. This Government back that, and I know it enjoys support across the House; it is a source of confidence around the world. However, it is true that an international business such as an automotive one wants to know, perfectly reasonably, what its trading relationships will be with the rest of the European Union in the years ahead. That is why these companies have been so clear that this House should come together and back the deal. I hope that the hon. Lady, with the care for her constituents that I know she always has in mind, will see fit to do so too in the days and weeks ahead.

[Nicky Morgan (Loughborough) (Con)]

In 2016, my predecessor as Chair of the Treasury Committee, who now sits in the other place, wrote to the Chancellor asking what money had been promised to Nissan in order for it to make its commitments. Today we find out that a letter was sent to the former Chair of the Select Committee on Business, Energy and Industrial Strategy, but it has only been released today, after the press had got hold of it. First, does the Secretary of State think it right that the company should decide that something is still commercially sensitive two years after the event? Secondly, how much of the £61 million is not going to be paid over?

[Greg Clark]

I am grateful to my right hon. Friend for her question. What I said in my statement and what I said at the time was that the programme of support for the automotive sector is very long standing and has been very successful. As it happens, the application that Nissan made was concluded relatively recently; it was putting forward a case, through the independent scrutiny processes, for funding. I shared the letter with the previous Chair of the BEIS Committee, and the Comptroller and Auditor General had also seen it at that time. I said in my statement that because the terms of the application, which is independently assessed and reviewed, have now varied, the company will of course need to resubmit on the grounds of the new information that it has. However, this remains a programme that has been very effective in supporting the skills in the wider workforce, environmental improvements and the research and development for which our automotive industry is now so renowned.

Oral Answers to Questions

Baroness Morgan of Cotes Excerpts

Tuesday 1st May 2018 Commons Chamber

[Andrew Griffiths]

The Government are well aware of the challenges involved in sleep-in legislation and the national minimum wage and are working closely with providers. We are also in discussions with the European Commission and will bring forward plans in future.

[Nicky Morgan (Loughborough) (Con)]

When will we see the review of Companies House procedures that I mentioned in my Adjournment debate on 20 November last year, which covers people who transition from one sex to another, whose records are sometimes left on the Companies House register? The previous Minister agreed to look at that.

[Andrew Griffiths]

I thank my right hon. Friend for that very important question. I remember the Westminster Hall debate that she had on this issue. The Government are minded to protect the rights of the transgender community. She will know that I recently brought forward a statutory instrument to allow directors to remove their addresses from the Companies House register in order to protect safety. I would be delighted to work with her to see what we can do to provide greater protections for the transgender community in this area.

Companies House and Transgender Persons

Baroness Morgan of Cotes Excerpts

Monday 20th November 2017 Commons Chamber

[Nicky Morgan (Loughborough) (Con)]

I am grateful to be granted this Adjournment debate, which is particularly appropriate as today is the annual Trans Day of Remembrance, remembering those who have lost their life to anti-trans violence and those who continue to face anti-trans rhetoric and abuse.

During my time as Minister for Equalities, I was able to engage with the transgender community on a national level and to learn more about the inequalities they face and how those inequalities affect their daily lives. I was therefore pleased to publish the Government’s response to the report of the House of Commons Women and Equalities Committee on transgender equality in July 2016, which was another step towards acknowledging that, although we have the Gender Recognition Act 2004 and although the coalition Government published the world’s first transgender action plan in 2011, the Government, among others, could do more to address the remaining inequalities, unfairness, violence and discrimination faced by transgender people.

Since July 2016, I have welcomed the work in this area by my successors, my right hon. Friend the Member for Putney (Justine Greening) and the Minister for Equalities, my right hon. Friend the Member for Bognor Regis and Littlehampton (Nick Gibb). I was particularly pleased to learn that the vast majority of commitments made in the Government’s 2011 action plan have now been met, and I look forward to reading the Government’s new action plan on transgender issues when it is published.

I also welcome the Government’s national lesbian, gay, bisexual and transgender survey on experiences of using public services in the UK, which will no doubt help guide future policy on improving public services for LGBT users. Finally, I support the Government’s plans to consult on the Gender Recognition Act, which will look to improve the recognition process and reduce the stigma faced by the transgender community. I understand that the proposals will include removing the need for a medical diagnosis of gender dysphoria before a person is able to apply for gender recognition, as well as options for reducing the length and intrusiveness of the gender recognition system.

[Mims Davies (Eastleigh) (Con)]

I thank my right hon. Friend for her work when she was Minister for Equalities.

This is, of course, the annual Trans Day of Remembrance. The inequalities that trans people face are extraordinarily great, and the violence and discrimination they face are really concerning. Does my right hon. Friend agree that, as the first Parliament in the world to consider these issues and given the amount of work that still needs to be done, what we are discussing this evening is easily rectifiable for this important community?

[Nicky Morgan]

I thank my hon. Friend very much for that. I am going on to show that we are dealing with a simple loophole, which is completely unintended, and closing it would be another step that Government and Ministers could take to show a continued commitment to the transgender equality plan. Some of these very simple steps can make a great deal of difference to people, both those who are watching tonight and those who find out about this debate later.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

I commend the right hon. Lady for securing this Adjournment debate. I met one of my local trans support groups in Cardiff and they shared with me many of their concerns. Steps such as the one we are discussing can go a long way in reducing stigma. Does she agree that there have been some unpleasant headlines in certain media outlets in recent weeks and that many trans people feel very stigmatised because of some of the ill-educated and ill-informed debate that goes on in the media?

[Nicky Morgan]

I agree very much with what the hon. Gentleman says, and I know that he is a great campaigner on these issues. As he says, and as we all know, prejudice often comes from fear, and we need to talk about these issues. During my time as Equalities Minister, I met trans young people and their families, some of whom struggled to accept what was happening to their families, but with the right support a huge amount of difference was made. All of us can benefit, not just on this issue, but on many others facing us a country at the moment, from standing back, listening to other points of view, trying to understand, even though that is not always easy, and not rushing to judgment.

As I was saying, the Government have committed to consulting on the Gender Recognition Act 2004, and I welcome the words of Ruth Hunt, the chief executive of Stonewall, who said:

“We need a simple process which isn’t medicalised, intrusive or demeaning.”

These are complex issues here that do challenge many people, but let us have a properly informed debate about them, rather than somehow thinking it is best not to discuss these difficult issues.

I would like to take this opportunity to again raise another aspect of the Gender Recognition Act that needs to be reviewed. In September last year, I received a letter from Alex, who wrote:

“I am the sole director of a company I set up some years back to manage a small property portfolio.. .When I changed my name and title the process to inform Companies House was actually very easy and my name was updated quickly...I noticed afterwards however, that this change of name and title was recorded in the company filings that are freely available for public inspection on the Companies House website. The document in question is a...Change of Particulars for Director form and clearly states my original name and title and subsequently my new name and title. This very obviously discloses my change of gender to anyone who happens to look at the filing history of my company, publicly outing me without my consent. The main issue I take with this is that of safety. In future there will be many people I meet and interact with who will have no idea of my transgender status because I simply will not tell them. If someone later finds out, this could potentially lead to violence, which is a reality that you are already aware the trans community faces.”

The potential for inadvertent disclosure comes about because of a conflict between section 22(4)(j) of the Gender Recognition Act 2004 and section 1087(1)(k) of the Companies Act 2006. The Under-Secretary of State for Business, Energy and Industrial Strategy, my hon. Friend the Member for Stourbridge (Margot James), who is on the Treasury Bench this evening, will be aware that I wrote to her about this last year and that, in her response to me dated November 2016, she made it clear that the companies registrar must make available to the public all information held on the public register unless he is specifically forbidden to do so by section 1087 of the Companies Act.

Section 22 of the Gender Recognition Act generally prohibits the publication of protected information held on a transgender person. However, section 22(4) details the circumstances under which it is not an offence to disclose protected information, which are if

“the disclosure is in accordance with any provision of, or made by virtue of, an enactment other than this section.”

The Minister’s letter to me stated:

“The Government is satisfied that this applies to the disclosure of a director’s former name as this is required to be placed on the public record by enactments in the Companies Act. In conclusion the data is not considered to be material excluded from public inspection by the Gender Recognition Act for the purposes of section 1087 of the Companies Act.”

I do not disagree with this interpretation, but, as I have said, this is an unintended loophole that needs to be closed, which is why, before the general election, I introduced the Companies Documentation (Transgender Persons) Bill to the House. When I introduced that Bill, I referenced another part of Alex’s letter to me, which said:

“In 2004 the GRA came in to place with the clear main goal of protecting people who were at risk of being vulnerable, and it was a world-leading piece of legislation which frankly I’m proud to say came out of the UK. What is happening now with Companies House is an entirely accidental and unfortunate flaw in the way that the GRA 2004 and CA 2006 interact with each other. This flaw is entirely against the spirit of the GRA 2004, and I think that anyone would be hard pushed to argue against that...I’m currently able to protect myself when it comes to my credit profile, my tax profile at HMRC, the FCA register, Government Gateway. I just personally think it is the right thing to do to force Companies House to be held to the same standard.”

My Bill proposed that that loophole be closed by amending the 2004 Act in a way that would allow transgender persons to apply to Companies House to withhold from public inspection information about a director’s former name, and for that information to be treated as protected information under section 22 of the 2004 Act. The case for this small legislative change is compelling, as such a disclosure can have a profound effect on transgender people, particularly as transition and history are very personal and should be something that a person chooses to share, rather than being forced to do so by someone else. The legal mechanism for people to change their gender is also not a decision that anyone enters into lightly, and nor does it happen quickly. In my experience, once that decision is made, transgender people want to be able to move on with their lives, to be treated with respect, and to live without the fear of being inadvertently outed or subject to violence.

I am afraid to say that, as we have heard, violence and discrimination do still occur. Since my previous speech to the House, the Home Office has published updated statistics that show that in England and Wales in 2016-17, there were 1,248 transgender hate crimes, up from 858 in 2015-16. That is an increase of more than 45%, which is higher than the previous yearly increase of 41%. Living in fear because of who you are is unacceptable in the modern United Kingdom and no one should have to live in fear of violence because of official documents that they have filed in compliance with a particular Act of Parliament.

I again thank those who have contacted me to share their views in spite of such fear, including Alex. I remind the House that, in the course of preparing for the introduction of my Bill, I was contacted by other transgender persons, one of whom said to me:

“My current position is that I am unable to start my business without running the very real risk of outing myself as a transgender woman. Presently I want to start a business to provide technology and web development services. However, as I cannot yet transition, I am in the unfortunate position where if I started a business now and then transitioned this information would be publicly available.”

Another contact, an accountant, told me that the advice that they were given was to resign as an existing director and register a new director’s appointment in the new name, although clearly details such as their date of birth would be the same. Alternatively, they were told they could close the company down, have it struck off and then set up a new company, with all the administrative expenses entailed in that course of action.

I also received the following message:

“I used to do IT contracting and did so via a limited company. I changed my name and title by deed poll in 2012 and also need to change my details at Companies House as a director of my company. I’ve now had gender reassignment surgery and will be applying for my gender recognition certificate as soon as I receive the necessary report from the Gender Identity Clinic. Whilst this will give me a lot of protection in law it will still be possible for people to find out my dead name by interrogating the records of my company at Companies House which could possibly put me at risk if someone found out those details for malicious purposes.”

Altering the Gender Recognition Act would be a simple change to make, yet it would mean a great deal to the many transgender people who suffer this problem in silence. The Government have an opportunity to close this inadvertent loophole and to show that they are committed to protecting the transgender community and to allowing transgender people to choose what, if any, information about their transition is publicly available and in what way such information is disclosed. I should add that I very much hope that were this option to be taken up, there would be a way for Companies House to make sure that such information is available to the lawful authorities, such as the police or others investigating a crime—because, of course, they might need to access some of those details—after an appropriate request and their having passed a suitable hurdle, including on why they need the evidence. I hope that, given the Government’s commitment to transgender equality, the Minister will consider this issue and the views of those who have contacted me as part of the upcoming review of the Gender Recognition Act. I look forward to hearing her response.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Margot James)]

I thank my right hon. Friend the Member for Loughborough (Nicky Morgan) for securing tonight’s debate on this very important subject and for the powerful and persuasive speech that she has made in support of her argument.

I recognise that she is seeking to protect the interests of those in the transgender community by ensuring their right to have their private information remain private. I have considerable sympathy with the personal accounts that she has shared in her speech this evening, and I can only conclude that the examples that she gives are backed up by many other people who have not come forward.

This debate highlights a difficult tension between two important principles: the right of an individual to have their private details remain private and not to be exposed against the also important need for transparency of the public register of companies. These rights are not easy to reconcile, but I very much agree with my right hon. Friend that we should make every effort to improve the situation that she described in her speech.

There are some very important reasons why the records of companies must be transparent and available for anyone to inspect. Incorporating a company and getting it registered at Companies House brings with it the benefit of limited liability to the owners and directors charged with running the company. In return for that significant benefit, directors of companies must provide details relating to their identity, residential address information and annual accounts of the company. That process gives anyone the ability to check business records and the trading history of people and businesses that they are dealing with or proposing to enter into business with.

It is only right that anyone should be able to check a director’s previous trading history or directorships, or any past disqualifications and bankruptcies. People might also want to know of their involvement in previous failed or successful businesses as important facts to consider when entering into business agreements.

In many ways, the register of companies is not just a list of companies with directors’ names. Its real purpose is to support the functioning of limited liability and to enable business trading across the economy through the information that it provides. It is that transparency that underpins its value and contribution. The register of companies is one of the most searched and interrogated databases worldwide. There were more than 2 billion searches on the website in 2016. It is also widely used by professional organisations—for example, credit reference agencies in determining whether to loan to prospective businesses, or professional researchers such as those engaged in transparency initiatives.

My right hon. Friend raises important statutory provisions—in particular that section 22 of the Gender Recognition Act 2004 does indeed make it an offence for a person who has acquired protected information in an official capacity to disclose that information. However, as she says, section 22(4) provides a number of exemptions, including section 22(4)(j) which says that

“the disclosure is in accordance with any provision of, or made by virtue of, an enactment other than this section.”

Section 12, together with section 163 of the Companies Act 2006, require directors to disclose their name and any former name to the registrar of companies. Sections 1085 and 1086 of that Act then place a duty on the registrar to make that information and other information delivered to them in relation to companies’ registration and filings available for public inspection. This is about the need for transparency as I mentioned previously.

Section 1087(1)(k) of the Companies Act does prevent the registrar from making certain information available for public inspection if required by another enactment. However, because of the carve-out in the Gender Recognition Act, information such as any previous names of directors, whatever the reason for the change of name, are not included in these exemptions.

The Gender Recognition Act 2004 does not make it an offence, as my right hon. Friend explained, to disclose this information when that disclosure is in accordance with another enactment, which is the case in respect of the Companies Act 2006. This therefore applies where a transgender person who is a company director has changed their name.

My right hon. Friend will know that the current pressures for information relating to companies and their directors is, in many respects, for even more transparency, rather than less. However, I do recognise that the register of companies should look to strike the right balance between the need for transparency and the protection of individuals and their private information. The current legal provisions already allow for certain information to be withheld from public inspection—for example, a director’s private residential addresses, where it is demonstrated that there is a risk of violence or intimidation arising from the activities of the company.

Since the register of companies became freely available online in 2015, however, a number of hon. Members have written to me raising their concerns about the range of private information that is now publicly available and easily accessible. As a result, my Department is considering a number of potential measures related to the integrity of the register of companies and the personal information that is available on it. I will most certainly ensure that the issue raised by my right hon. Friend is considered within that work. Although I can commit to consider the issue further, I would stress that the position of company director carries with it statutory duties and accountabilities. We need to guard against the creation of loopholes that would allow people to evade their responsibilities or to conceal their previous trading history by changing their name on the register.

[Nicky Morgan]

I thank the Minister for the way in which she is responding to my debate. I welcome the fact that she has talked about the wider consultation, but may I urge and push her just a little further to say that the matters I have raised tonight should be a part of that consultation—at least, the gathering of views to find out the scale of the problem? Will she also consider, again perhaps as part of the consultation, Alex’s comment to me that she is able to protect herself when it comes to her credit profile, her tax profile with Her Majesty’s Revenue and Customs, the Financial Conduct Authority register and the Government Gateway, all of which presumably—certainly the credit profile and tax profile—help in building up the transparent profile of somebody that the Minister has been talking about?

[Margot James]

I will certainly consider what my right hon. Friend said; she certainly makes a powerful case. Transparency will remain a high priority for the register of companies, but we must consider her arguments and I will consider what she asked for as part of our review.

As my right hon. Friend mentioned, the Government have committed to publishing a consultation shortly on amendments to the gender recognition process in England and Wales. We also recently launched a national survey on the needs of the LGBT population, which has just completed, receiving more than 100,000 responses. Both these consultations will be of help in shedding light on the issues raised in this debate, and I will consider further what my right hon. Friend has argued for tonight in that process.

Question put and agreed to.

Higher Education Funding

Baroness Morgan of Cotes Excerpts

Wednesday 11th October 2017 Commons Chamber

[Joseph Johnson]

The Labour party helped to introduce the system we have today and this Government have been building on it since 2010. It is extraordinarily successful at enabling more people from disadvantaged backgrounds to get a chance to benefit from higher education. I am startled that the Labour party wants to roll back all that progress. Why would they want to reverse the changes that have enabled more than 50% more students from disadvantaged backgrounds to get into higher education? That is what the hon. Gentleman’s proposals would end up achieving.

[Nicky Morgan (Loughborough) (Con)]

I congratulate the shadow Secretary of State on continuing the fine tradition of women carrying on with speeches in the face of adversity. As someone who represents a university, was it not the case, when we made the decision in 2010 to put up fees, that it was a very simple calculation that if fees were not raised, we would have had to cut the number of young people able to go to university, because otherwise the public purse would not have been able to afford the system we have now? Universities are now well financed: we are not having the debate about university financing that we are having about other areas of public spending.

[Joseph Johnson]

My right hon. Friend is absolutely right. It was the increase in tuition fees that enabled us to take the limit off student numbers and release student number controls. That change is what has driven the sharp increase in participation in higher education by people from lower socioeconomic deciles. It has driven a huge expansion of people from disadvantaged backgrounds getting a chance to go through university and higher education. The Labour party’s policies would reverse all that progress.

Oral Answers to Questions

Baroness Morgan of Cotes Excerpts

Tuesday 31st January 2017 Commons Chamber

[Nicky Morgan (Loughborough) (Con)]

T7. The Government’s recent industrial strategy Green Paper is to be warmly welcomed. I have spoken to the vice-chancellor of Loughborough University, and we see lots of opportunities for the Loughborough constituency, the university, the college and local industry. My right hon. Friend the Secretary of State has visited Loughborough; perhaps I can tempt him to come again to hear about those opportunities, or could we meet in London?

[Greg Clark]

I commend Loughborough University and its vice-chancellor, Robert Allison. It is a fantastic example of an excellent academic institution that makes a big impact locally. I am always happy to meet my right hon. Friend and the leadership of that fine university.

Exiting the EU: Science and Research

Baroness Morgan of Cotes Excerpts

Monday 19th December 2016 Commons Chamber

[Nicky Morgan (Loughborough) (Con)]

I welcome the fact that this debate is happening in Government time, and I was delighted to support the Back-Bench application for it. It is also a pleasure to follow the hon. Member for Lewisham West and Penge (Jim Dowd). I congratulate the hon. Member for Richmond Park (Sarah Olney) in her absence. Had she been here, I would have gently pointed out that Richard III is a rather popular monarch in Leicestershire and has been rather good for our tourist industry.

This debate is important to my constituency, which has Loughborough University at its heart, to my constituents and to our potential life science opportunity zone at Charnwood Campus. It is a shame that the Minister for Universities, Science, Research and Innovation is not still in his place, because I had hoped that he might have given us an early Christmas present by announcing life science opportunity zone status for the Charnwood Campus. Perhaps the Under-Secretary of State for Exiting the European Union will make a note of that, although I do not expect him to make such an announcement this evening. I must also mention the other businesses and organisations in my local area that rely on science and research, including the University of Leicester. The Science Minister recently visited Loughborough, so he will know that, according to the 2014 research excellence framework, 65% of Loughborough’s academic staff are involved in internationally leading research, putting the university 17th out of 154 higher education institutions. It ranks 10th in England for research intensity and generates in excess of £40 million a year in research grants. That experience is directly relevant to the university’s concerns about EU funding and collaboration.

It is right to recognise the commitment of this Government and previous Governments to science and research funding. I pay tribute to the science Minister—he is now back in his place and if he has not heard from his fellow Minister about my request for an early Christmas present, I suggest he ask now—to my hon. Friend the Member for Mid Norfolk (George Freeman) and to the previous Member for Havant, who now resides in the other place, for fighting the science corner in successive Budgets, autumn statements and spending rounds. The Government are delivering on their manifesto commitment to protect the science capital budget, and the science budget of £4.7 billion will rise in cash terms every year in this Parliament.

It is fair to say that science and research funding was perhaps not at the forefront of the campaigning or in the general hubbub around 23 June. People do not always understand—I certainly did not before becoming the MP for Loughborough and thus for Loughborough University—what Brexit might mean for innovation, jobs and Britain’s place in the world. The Chairman of the Science and Technology Committee was right when he said that how that aspect of Brexit is handled—I am paraphrasing so I hope that I have got this right—goes to heart of whether we remain an outward-facing nation, leading the world in research and cutting edge science and technology, or whether we cede that position to other countries. One local business put it to me like this:

“Being in the EU puts us in a much larger market than UK alone. It helps to attract and employ the best people to compete in fierce international markets. The UK should be seen as modern, open and inclusive to invite further investment.”

Some on the Government Benches will disagree about the terms on which we conclude Brexit, but we can agree, based on figures already cited, that UK research is enormously influential around the world. What was missing from the discussion before 23 June was just how important EU research funding is in supporting the UK’s research and how much that funding is at risk at the moment. It is about not only money, but uniform regulations, which should not be overlooked in future negotiations and agreements.

Advances in research and the consequent benefits to society and the economy could not be realised simply by having the same level of funding go through a UK funding body. Loughborough University tells me that urgent action is required to guarantee UK participation in EU research networks post-Brexit, including continuing to contribute to funding of EU research programmes initiated during the two years after invoking article 50. We will all have anecdotes about research bids in which the UK has been dropped completely as a participant or co-ordinator due to the referendum, but I know of at least one case in which the UK institution was invited back into the project following the Treasury statement in August on underwriting UK participation, which demonstrates how important that announcement was and how important continuing announcements in the same vein will be. I welcome the Chancellor having given that commitment. We have already heard demands that the UK have associated country status in Horizon 2020—third country status would be much less satisfactory.

A non-university example is Medilink East Midlands, which has supported over 1,000 companies in the development of innovations through the European regional development fund project that it ran between 2008 and 2015. It has three new ERDF projects that will continue that support for the next couple of years, and it is worth noting that ERDF has been the only source of funding for business and innovation projects available to them since 2010. Over the past seven years, Medilink EM has delivered an intensive programme of innovation support to the east midlands life sciences sector. In addition to supporting over 1,000 companies, that has meant producing gross value added of over £8.2 million, creating or safeguarding 480 jobs, and helping over 25 new product launches. As we also heard, however, none of this is possible without talking about people, and this is top of the worry list for those most affected by this debate. We have already heard about how much money international students bring—£11 billion to the UK economy each year— but they also make an important cultural contribution. In 2012-13, 5.5% of students studying in the UK were from EU countries, generating £3.7 billion for the UK economy and sustaining 34,000 jobs in local communities. As a local Member of Parliament representing a large university, I can tell the House that those are not always high-value jobs; we are also talking about the cleaners, cooks and administrators who make a university function, leaving aside the other jobs created locally which rely on the university, such as those in retail and leisure. I echo the call of my hon. Friend the Member for Bath (Ben Howlett) that students should not be taken into account in net migration numbers. I welcome the Prime Minister’s statement at last week’s EU Council meeting that she wants an early deal on the rights of EU citizens, and I shall continue to push Ministers to honour that.

In the short time available, I just wish to say that by 2019 we are going to have new immigration and trading policies, and we look forward to a new industrial strategy, and we must have a new relationship that enables our institutions to take part in EU funding for science and research.

Oral Answers to Questions

Baroness Morgan of Cotes Excerpts

Tuesday 8th November 2016 Commons Chamber

[Mr Hurd]

I thank the hon. Gentleman for that question. Of course, as a west midlands MP, he sits at the heart of a region that is being very dynamic and organised in expressing its determination to compete aggressively. Let me reassure him. I recognise the uncertainty—Brexit does create tremendous uncertainty and we need to recognise that—but it is the responsibility of the Government, and my Department in particular, to liaise closely with sectors across the economy and the regions to understand their priorities and inform the negotiating strategy.

[Nicky Morgan (Loughborough) (Con)]

7. What steps his Department is taking to encourage innovation and research in science; and if he will make a statement.

[The Minister for Climate Change and Industry (Mr Nick Hurd)]

The Government are committed to making the UK the best place for science research and innovation. To achieve that, as my right hon. Friend knows, we are investing £30 billion over the course of this Parliament. We are also strengthening our research and innovation system by creating a new body, UK Research and Innovation.

[Nicky Morgan]

I thank the Minister for that reply. In March the former Life Sciences Minister, my hon. Friend the Member for Mid Norfolk (George Freeman), visited the Charnwood campus in Loughborough, the former AstraZeneca site, and invited it to become the country’s first life sciences opportunity zone, a hub for innovation and research in science. That bid is now on the Secretary of State’s desk, and I ask him to look on it favourably.

[Mr Hurd]

I can reassure my right hon. Friend that the Government remain extremely interested in life sciences opportunity zones and that we were extremely impressed by the leadership that Charnwood campus has shown in preparing its bid, which has great potential. I am assured that my colleague, the Minister for Universities and Science, is well aware of the bid and expects to make an announcement shortly.

Nissan: Sunderland

Baroness Morgan of Cotes Excerpts

Monday 31st October 2016 Commons Chamber

[Mr Speaker]

Order. There is much interest in this subject, and I want to accommodate it. Single, short supplementary questions—preferably a single sentence without preamble—and the Secretary of State’s customarily pithy replies are required.

[Nicky Morgan (Loughborough) (Con)]

The Secretary of State is to be congratulated on his announcement, which is clearly very good news for Sunderland, but I think that he will understand Parliament’s desire to understand the terms on which these and other negotiations are conducted. May I ask whether he has discussed this matter with the International Trade Secretary, and whether he will be in the driving seat of future trade negotiations? We all think that he is rather good at it.

[Greg Clark]

I am grateful for my right hon. Friend’s compliments. As she knows, we have a Cabinet Committee on Brexit, on which I serve alongside my right hon. Friend the Secretary of State for International Trade.