British Baccalaureate

Baroness Neville-Rolfe Excerpts

Tuesday 21st June 2022 Lords Chamber

[Baroness Barran (Con)]

The Government engage with all the key stakeholder groups in this sector. We value enormously the expertise that they hold. However, I remind the House that attempts were made to deliver a broader 14-to-19 diploma but were not successful.

[Baroness Neville-Rolfe (Con)]

My Lords, the commission’s report comments on the importance of bringing out the best in teaching. Teach First has transformed the quality of teaching in some areas by attracting top-quality graduates into our schools. Would the Government consider a programme of Teach Last, to use the skills of those who retire early or want to give back to their communities after another career?

[Baroness Barran (Con)]

My noble friend will be pleased to know that there is such a programme, Now Teach, and that the Government have been active in supporting it.

Skills and Post-16 Education Bill [HL]

Baroness Neville-Rolfe Excerpts

Thursday 21st October 2021 Lords Chamber

[Lord Lucas (Con)]

My Lords, we had a fair old ding- dong last time we met on this Bill, with the Government proposing that we should destroy an entire suite of examinations in order to improve access to T-levels. Yet here they are refusing to make minor changes to the sight that children are given of T-levels—which have many other benefits—as an option.

I do not see how the Government are being consistent on this. If they want T-levels to be fully appreciated as an option by young people, they need them to be put in front of those young people, clearly and frequently. That is what my noble friend Lord Baker’s amendment would do, and the Government’s amendment would not. I am thoroughly with those noble Lords who have spoken in saying that my noble friend’s amendment is a better way forward than the Government are yet proposing.

I also encourage the Government to look at a couple of old chestnuts to do with performance tables. If you want head teachers to say to children that they will be better off in an FE college and encourage them to go to it, you ought to give them credit for the results that they achieve there. It ought to be something that appears in the performance tables, credited to the school that has made that decision; otherwise, the incentive is just to hang on to pupils for the money. If schools are risking a blip in the performance tables because the A-level results will be bad and it would have been much better if they had gone to a technical college, there will be a real incentive for schools to encourage children to take that option.

The other aspect is to provide much better data on where children end up after school. At the moment, the information provided on what happens to those who do not go to university is very thin, uninspiring and not the sort of thing that encourages a parent to say, “Oh, that looks interesting; why don’t we look at that?” The provision of data and information is really important in helping parents to help their children make decisions, and the Government are falling a long way short on that. They have the information; it is just a question of deciding that they will publish it or make it available to others who will publish it. I really encourage them to go down that road.

My noble friend the Minister said that she hoped children would be making fully informed choices. I totally agree with her. If we can bring universities up to that standard, I should be delighted as well.

[Baroness Neville-Rolfe (Con)]

My Lords, I share the sentiments of my noble friend Lord Baker about the way that my noble friend the Minister has taken a grip of this Bill, and I thank her for that. I have to say, therefore, that it is with some trepidation, and with the benefit of my business and bureaucratic experience, that I rise to throw a bit of cold water on the detail of both amendments.

As noble Lords will know from earlier discussions, I am very keen to see vocational careers education, training and, above all, apprenticeships advocated in schools—and, in fact, by employers themselves. We clearly have a problem. However, I worry about the bureaucracy that will be created by this provision; it is a concern with either version. To comply with the provisions, a lot of detailed work would have to be done by teachers, who work so hard; by providers—including UTCs, which I agree should be involved—of post-16 education; and by employers, if they join providers in schools, which is something that I think can often work well. They will have to do a lot of form-filling and more recording, health and safety-style. Then, as has been said, there will be extra guidance, but we do not know exactly what will be in that; it could make it easier or it could make it worse.

I worry that this will deter exactly the people and institutions that you want to get into schools to encourage youngsters to think about their futures and choose the right educational option. Too many people, in my view, now go to university and not enough go into good vocational routes. I have experience in Germany and Switzerland and elsewhere. To pick up on something that the noble Lord, Lord Adonis, said, in those countries, they often move at 14 or 16, which can be extremely helpful with the vocational route.

My worry is that the beneficiary of these micro-rules will be, yet again, the consultants who will have to help with process and compliance. I am obviously very sympathetic to the objective of these amendments, but I would like some reassurance from the Minister on how we make this system simple and efficient and how we enforce it sensibly—before we go through the Lobbies. As the noble Lord, Lord Aberdare, was saying, there are costs and resource requirements in doing all these things in schools, and they have to come from somewhere else. So if we are going to make a change of this kind, we need to understand how it will be done and how it will be enforced, and that it will be done in a sensible and effective way, not adding needlessly to the weight of burden on our teachers.

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[Baroness Barran (Con)]

My Lords, I once again thank my noble friend for his amendment and his commitment to this issue. Before I respond to the points raised by noble Lords, I would like to express my support and thanks to head teachers, who received a certain amount of criticism in this debate regarding where they place their priorities. After the last couple of years, when they have shown unstinting strength of leadership and courage in the face of incredibly difficult conditions, I would like to put on record that we owe them our thanks, first and foremost.

I will try to answer the questions from the noble Lord, Lord Storey, on why the Government are not supporting this amendment and the role of Ofsted in monitoring the Baker clause. Ofsted has updated its school inspection handbook to strengthen the focus on careers guidance, including by clarifying that inspectors will always report when a school falls short of the requirements of the provider access legislation—the Baker clause—as well as considering how it affects a school’s inspection grade. If I may, I will write to the noble Lord, Lord Aberdare, regarding his detailed questions about the careers framework.

Turning to the amendment itself, I will clarify for the House my understanding of the difference between our government Amendment 35 and Amendment 35A. On a number of occasions, your Lordships referred to three provider encounters under Amendment 35A; the provisions are for three encounters per phase of education, so a total of nine—I think my maths is right. The noble Baroness, Lady Wilcox, spoke about having at least one encounter a year, but it is more than one a year. Amendment 35A seeks to increase the number of provider encounters to nine per pupil: three during each of the first, second and third key phases of a pupil’s education.

The Government’s amendment has three mandatory offers on the part of the school, two of which are also mandatory for the pupil and would take place in the first two phases of their education, with the third, optional encounter then taking place in the last phase. My noble friend acknowledged that schools are incredibly busy places. We are trying to find a balance which underlines the priority we place on this education without taking up too much curriculum time.

I thank my noble friend Lady Neville-Rolfe for her remarks regarding bureaucracy, something that everyone, not just the Government, would like to minimise. That is another reason why consulting on the detail of implementation to make it as streamlined as possible is helpful.

On the question of timing, raised by my noble friend Lord Baker, I should clarify that the implementation of our amendment is not dependent on secondary legislation. The principle and number of encounters would be set out in the Bill, as my noble friend knows, while the secondary legislation would just provide further detail on the types and numbers of providers and some other points. Our amendment would come into effect at the same time as the amendment from my noble friend.

As my noble friend set out eloquently, his amendment also seeks to name university technical colleges in the Bill as one of the providers that every pupil must meet where practicable. This would give more weight to one provider over the rest. While we understand and absolutely respect his commitment, we want to act in the interests of all providers and therefore pupils, not just university technical colleges.

We include in our amendment the power for the Secretary of State to set out further details about the number and type of providers in secondary legislation if needed. We can, as part of this, consult school and provider representatives on these matters. We must be careful not to prejudge the outcome of any consultation by giving a guarantee that we will name UTCs in the secondary legislation. Putting this detail in secondary legislation also allows us to retain more flexibility to update the legislation in line with future policy changes.

In conclusion, the Government believe that Amendment 35 supports the interests of schools and all providers and allows flexibility for future changes in secondary legislation. We are absolutely committed to making the Baker clause work better, in a way that works for pupils and providers. I therefore hope that my noble friend—

[Baroness Neville-Rolfe (Con)]

Before the Minister sits down, could she say a little bit about the enforcement of these provisions? My understanding of her reply to the noble Lord, Lord Storey, is that Ofsted will keep an eye on this. Is that all that happens? If you do not keep detailed records in the educational space, what happens to you? Perhaps this is not an issue as it is not the norm to keep them. I am mystified as to how this would work in practice.

[Baroness Barran (Con)]

I thank my noble friend for her incredibly kind comments earlier about how quickly I have picked up this brief. I cannot confidently respond further than I did in my response to the noble Lord, Lord Storey. Schools take Ofsted inspections extremely seriously, so I hope the fact that the inspection framework and handbook have changed to accommodate this will give my noble friend some reassurance. I will also write to her and put a copy of the letter in the Library.

Skills and Post-16 Education Bill [HL]

Baroness Neville-Rolfe Excerpts

Report stage
Thursday 21st October 2021 Lords Chamber

[Lord Cormack (Con)]

It is serious, as my noble friend Lord Forsyth knows better than most. Not only is it serious but it is outrageous that, to provide sporrans for a Scottish regiment, the Ministry of Defence has recently gone to Pakistan, whereas in Scotland they can still be made.

I will not go on; I hope I have made my point. Apprenticeships are desperately important, and they are not second best. A young man or woman cannot work with his or her hands unless they have a brain that functions—although, rather interestingly, many people with dyslexia are particularly good crafts men and women. We need them, and we must have proper apprenticeships that enable them to become accomplished.

I am very taken by the amendment moved by my old noble and learned friend Lord Clarke. We began in politics together, way back in 1964, fighting in adjacent constituencies. I think he has performed a service to the House by moving his amendment, so ably seconded by the noble Lord, Lord Layard. I very much hope that my noble friend who winds up will accept the thrust and logic of what has been said and give us a comforting reply.

[Baroness Neville-Rolfe (Con)]

My Lords, I rise to agree with almost everything that has been said about the importance of apprenticeships. This is the right moment to be pressing for reform, as both the Prime Minister and the Chancellor are emphasising the importance of skills in the post-Brexit economy and in levelling up, as the noble Lord, Lord Layard, indicated. However, there are some problems with this amendment as it stands—notably, the lack of clarity as to what it would cost, and exactly where the funding would be found for proposed new subsection (1).

Skills and Post-16 Education Bill [HL]

Baroness Neville-Rolfe Excerpts

Report stage
Tuesday 12th October 2021 Lords Chamber

Moved by

[Baroness Neville-Rolfe]

8: Clause 1, page 2, line 20, at end insert—
“(5A) In producing a local skills improvement plan, employer representative bodies must consider skills deficiencies in the local area in the following fields—(a) digital,(b) innovation,(c) engineering,(d) the built environment, including climate related challenges, and(e) any other fields the Secretary of State deems relevant.”

[Baroness Neville-Rolfe (Con)]

My Lords, I thank the noble Lord, Lord Ravensdale, for his help in crafting this amendment, and the noble Lord, Lord Bird, for his support. I also welcome my noble friend Lady Barran to her new role as Minister in the education department. Her consummate courtesy and forensic attention to detail were manifested at a meeting she arranged involving her, the Bill team and me yesterday. I am hopeful that she will have a long and successful stint at the department at a time when improving skills is a top priority. I declare my interests as a non-executive at a number of businesses which will benefit from improved skills.

My amendment is intended to ensure that local skills improvement plans take proper account of deficiencies in certain fields of vital importance to our country. Let me explain the rationale for the various proposals in the amendment. First, I am concerned that our lack of digital skills is acknowledged but not built consistently into either the school or the FE system—unlike, say, literacy and maths.

Next, innovation is essential to future growth and competitiveness and is well supported by our universities. What is less recognised is that innovation is also important in technical and vocational areas. I know this from my time at Tesco, when part of our success was down to thousands of people finding new ways of doing things that were quite often minor in themselves, but—and this is the vital bit—were able to be replicated very many times. I remember advances in packaging, for example, both to make it safer and to reduce its environmental footprint. I remember improvements in building design that reduced costs as we built more stores. The classic example, of course, is the UK Olympic cycling team, with its many small improvements, all of which helped us to win many gold medals over decades. We need to focus on that kind of thinking.

I have added engineering partly because the noble Lord, Lord Ravensdale, is an engineer, and I very much look forward to hearing from him. We lag behind some other nations, such as Germany, and in engineering —ever more important in the digital world—we do not have a vocational route to the top from age 16, as it does. The industry associations decry this but have not found a way through so far, and we have a national shortage which is becoming ever more urgent.

Moving on, I should declare an interest as chair of this House’s Built Environment Committee. Our first inquiry into housing is already revealing a serious problem in relation to skills—construction skills needed on building sites, project management and building control. We heard this morning in the committee that we need people with design skills, architects and planners to build the kind of homes and places that we all want to live in. Skills to tackle climate-related challenges are also referred to in my amendment. That includes the dire shortage of heat pump installers and energy efficiency and retrofitting specialists. They are in short supply.

The new local skills improvement plans need to tackle these needs relating to the built environment. I should acknowledge the good practice already being pioneered by Crossrail and at Hinkley and elsewhere, but this kind of endeavour in vocational training should become part of the system. I was heartened by seeing on Sky News yesterday a trainee bricklayer at an FE college confidently planning his future and expecting to establish his own business as a bricklayer in a few years’ time. We need more like him, and they need to be paid properly.

The Minister has tabled—and we have already agreed—an amendment to the effect that skills relating to climate change and other environmental goals are to be considered in the development of local skills improvement plans. That is fine and dandy, but it does not meet my needs. I do not think—and I do not believe that most others, including our young people, will think—that environmental objectives should take precedence over all economic ones and, by implication, over jobs and skills in all non-environmental areas.

Of course, things change. For example, energy resilience has suddenly become a priority, as I predicted, Cassandra-like, when I was the Energy Minister a few years ago—I may add, to the surprise of some of the relevant officials at the time. To cater for the unexpected, my amendment also refers to

“any other fields the Secretary of State deems relevant”,

allowing him or her to add other categories to the plans in future.

Before I sit down, I have two related questions of which I have given notice. First, can we have a better idea of the geographical areas that the skills improvement plans will cover? I favour larger areas, such as the metro mayor areas, where top industrial and business players and small business interests can come together and help local colleges provide the right training in the right places. I worry that vested interests may lead to a less than effective patchwork of mini, unco-ordinated plans. It is somewhat unsatisfactory that we are agreeing new powers in this Bill without knowing how and at what level they will be applied, as we discussed in Committee.

Secondly, how can we ensure that the plans deliver results? We need incentives—carrots or sticks—so that they are implemented. Government, in my experience, is often good at vision and virtue signalling, but less good than business at implementation, as I have discovered from moving between one and the other. We need to monitor what happens; we do not want a repeat of the problems on apprenticeships, where, for a considerable period, the numbers went backwards despite many of us in business telling successive Secretaries of State of the problems. We need to learn from this sort of experience.

I very much look forward to hearing my noble friend’s comments and any reassurance she can provide and, of course, to hearing from other speakers on related subjects. I beg to move.

Amendment 9 (to Amendment 8)

Moved by

--- Later in debate ---

Amendment 9 (to Amendment 8) withdrawn.

[Baroness Neville-Rolfe (Con)]

I thank all those who have taken part in such an interesting and wide-ranging debate on the content and creation of local skills improvement plans. I particularly thank the noble Lord, Lord Bird, for his contribution on both the need to look ahead and the importance of creativity. I agree, and creativity and innovation are clearly linked. We should all emphasise creativity, including in arts, music and innovation, when we visit schools and colleges. I also thank the noble Lord, Lord Ravensdale, for his emphasis—coming from an expert position—on the crisis in digital skills, especially digital engineering, and the need to listen to the voice of small business.

The noble Lord, Lord Adonis, was his usual challenging self but he is right to be concerned about the decline in apprenticeships. It is very good to hear from my noble friend the Minister that the Chancellor is on to this.

The noble Lord, Lord Watson of Invergowrie, said that we needed more flexibility in apprenticeships; perhaps we could think about that one. He is also right that local and mayoral authorities are keen and ambitious to do more on skills and they should be consulted, as the Minister has said that they will be. I do not support the precise terms of the noble Lord’s amendment, which would slow down the reforms that we need and lead to a patchiness in provision, as I have seen with the local enterprise partnerships. We need to avoid slowness and bureaucracy, and—responding to the oratory of the noble Lord, Lord Coaker—get on with the skills revolution.

Above all, I thank the Minister for her helpful and concrete responses. I very much look forward to having the opportunity to see the statutory guidance—and to quizzing her on the subject of monitoring—but for now, with many thanks, I beg leave to withdraw my amendment.

Amendment 8 withdrawn.

Queen’s Speech

Baroness Neville-Rolfe Excerpts

Thursday 19th May 2016 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Business, Innovation and Skills and Department for Culture, Media and Sport (Baroness Neville-Rolfe) (Con)]

My Lords, the gracious Speech is, of course, the second in this Parliament. We have already made good progress in many areas of policy though, at the macro level, it must be acknowledged that the EU referendum—which several noble Lords mentioned—dominates political attention. Matters will not return to normal until it is out of the way.

Today’s debate has been a bit of a marathon, as the noble Lord, Lord Watson, hinted in his summing up. It has also been very wide-ranging on many points, some of which the Government will want to respond to on other days during this debate. But it has underlined the vast expertise of this House. As a business and culture Minister, I have hugely enjoyed the chance to go deeper into areas where I do not have responsibilities but which are vital to this country, such as health and education. To give one example of the wide-ranging nature of this debate, I always enjoy the challenging comments of my noble friend Lord Hodgson—which very often are on the subject of the British pub. Today he made a very thoughtful contribution on how people form opinions and how that is changing, and on the implications of population growth.

I did not entirely agree on the issue of automation. I think that driverless cars and so on provide an opportunity for the UK, and they are in our plans for the next Session. Once changing relative wages and new jobs are taken into account, there is little evidence for the reduction in mid-level jobs. Since 2010, our economy has seen employment growth across nearly all the major occupational groups and the digital revolution has been an important driver.

As the Prime Minister said in another place yesterday, with this Government economic security always comes first. We build on strong foundations. The deficit has been cut by almost two-thirds as a share of GDP; the highest employment rate on record was announced this week; and our long-term economic plan means our economy is over 13% bigger than at the start of 2010. We have 900,000 more businesses and 764,000 fewer workless households, and poverty is at its lowest rate in three decades.

In response to the rather grudging comment by the noble Baroness, Lady Burt, on the Queen’s Speech, I believe that it sets out a clear programme of reform using the strength of our economy to deliver security for working people and to increase life chances for the most disadvantaged, strengthening national security while living within our means.

I must endorse the comment by my noble friend Lord Suri about our gracious Queen. I was very glad, as he was, to see the proposals for prisons. This is an area that will be discussed on another day but it was one on which I worked when I was at Downing Street. The noble Baroness, Lady Brinton, made some very good points about prison education.

The right reverend Prelate the Bishop of Durham and the noble Baroness, Lady Burt, raised concerns about investment in the north and in the Midlands. For too long, the economy of the north has underperformed compared to the UK average. I speak as a business Minister who enjoys visiting the north. In recent times I have visited manufacturers in Darlington, Catapults and a video games business in Newcastle—and, of course, Durham cathedral, which is a jewel in a UK treasure trove of beautiful cathedrals. The Government are committed to the northern powerhouse. We will spend £150 billion on health, £45 billion on schools and £13 billion on transport across the northern powerhouse over this Parliament. This will be coupled with the Government’s investment in the Midlands Engine, which includes a £250 million Midlands Engine investment fund, and £5 million to Midlands Connect to take forward the new regional transport strategy.

The noble Lord, Lord Mendelsohn, said that we needed to step up to the challenge of industrial policy. The long-term approach upon which our industrial strategy was formed will continue. It means focusing on policies which boost productivity. It means our 3 million target for apprentices, which I reassure my noble friend Lady Wheatcroft has not been abandoned. It means the promotion of competitiveness and creating long-term investment. This is crucial for the stability and strengthening of our economy, as is enhanced competition and, of course, taking advantage of the opportunity of the digital revolution. I will focus on those areas and then turn to education, welfare and health, including mental health.

Competition is the lifeblood of a healthy economy. Strong competition in markets generates greater choice, lower prices and better-quality goods and services for consumers. I thank the noble Lord, Lord Mendelsohn, and the noble Baroness, Lady Burt, for graciously welcoming the markets Bill and look forward to working with them on its important provisions. The Government believe that consumers should have quick access to their data and reliable, transparent price comparison websites. The Bill would encourage quicker and easier switching of energy suppliers and other providers in regulated sectors. We want to simplify the whole process of competition investigation to reduce business burdens and improve consumer choice. The Bill will ensure that the CMA has the right and proportionate tools to do its job.

We have committed to a business impact target to reduce regulatory burdens by at least £10 billion. We have already taken measures to deliver more than £300 million in annual savings to hundreds of thousands of small businesses through changes to audit rules, and 800,000 self-employed people no longer have to comply with burdensome health and safety regulations.

The UK’s system of independent economic regulation is a great asset for the economy and supports investment in UK infrastructure. This Bill will make the way they operate more straightforward for investors, consumers and businesses and will maintain focus on the core task of economic regulation.

The noble Lord, Lord Harrison, raised concerns about productivity. Last July, the Government published Fixing the Foundations, which sets out the Government’s plan to tackle the UK’s productivity gap—this long-term gap that we must do something about—and this Queen’s Speech takes that forward.

I am also very glad to be able to tell the noble Lord that I sit next to Estonia in the Competitiveness Council, and I have already met Estonia’s President to discuss the digital single market. We will be working on a trio of presidencies—the UK, Estonia and Bulgaria—to advance the single market and the digital single market, using the influence we hope to have during the EU presidency from 1 July 2017.

We are taking several steps to address late payment, as the noble Lord knows only too well. We are setting up the Small Business Commissioner. There will be new transparency reporting requirements regarding payment performance for larger companies and we are extending representative bodies’ powers to challenge grossly unfair contract terms related to the scourge of late payment, which we have discussed on many occasions. In a related area, I thank my noble friend Lady Wheatcroft for her suggestion that larger exporters should help smaller exporters to move forward.

My noble friend Lord Naseby raised concerns about retailers having to wait for changes to rates. The Government will switch the indexation from RPI as the main measure of inflation to CPI in 2020. We believe that this strikes the right balance between fiscal consolidation, certainty for local authorities and support for business. It is in the pipeline. The Government will also seek to protect the high street from unfair competition from those retailers from beyond the EU selling over the internet and evading VAT.

We made a manifesto commitment to make the UK the best place in Europe to innovate, patent new ideas and set up and expand a business. A clear and fair intellectual property framework is crucial to achieving this. Our work now embraces education, regulatory change and enforcement to reduce piracy and IP theft. I was so glad to hear from the noble Lords, Lord Stevenson, Lord Watson and Lord Clement-Jones, regarding their support for this area. The digital economy Bill will not contain a backstop power to regulate platforms as, later this month, we expect an indication of where the EU is going with its own work in this area. Nor will the Bill contain measures specifically on streaming, although the changes to criminal penalties on online copyright infringement will obviously cross over and help with regulating that activity.

I was asked by one noble Lord whether I would support a pan-EU IP enforcement agency—he has seen our enforcement strategy and I thank him for quoting it. I believe that close work across Europe is absolutely vital in tackling IP infringement. We are doing a lot with a number of agencies and we will do more.

I am obviously delighted that today, we have brought forward the law commission Bill and that we have been able to do something about our frustration with the misalignment in criminal penalties. In the digital economy Bill, there will be a maximum 10-year prison sentence for online crime to equal that available for physical infringement. We are also allowing designers to mark their products with a web link for the first time.

The digital revolution is bringing economic and social change at a faster pace than we have ever seen before. To keep the UK at the front of the pack, we need a legal framework that supports connectivity for consumers, business and government and encourages consumer engagement. It can also help to support and fire up our creative industries, which the noble Baroness, Lady Bonham-Carter, described with such eloquence, as did my noble friend Lady Wheatcroft, and—in a different industry—the noble Lord, Lord Bichard, rightly talked about telemobile and its potential use in healthcare.

By the end of the year, 95% of UK premises will have a superfast broadband connection; the digital economy Bill will give the final 5% a legal right to be connected on request, so no one will be left behind. The noble Lord, Lord Bichard, asked whether 10 mbps was enough—we will keep this under review. It will enable households to stream films in HD, watch catch-up TV, make a video call and browse online at the same time. Ofcom has advised that it is enough for a typical household today. However, the Bill will enable the Government to increase the minimum speed to meet future needs.

The noble Baroness, Lady Burt, asked about fibre. Fibre is obviously only one measure of connectivity, but the UK has the highest level of superfast coverage among EU countries. As of June 2015, more than a third—36%—of UK fixed broadband connections had speeds of 30 mbps or more, a much higher proportion than in France, Germany, Italy and Spain. The Bill will enable investment in fibre and other technologies through the reform of the Electronic Communications Code and planning reform. It will aid consumers in choosing the right products for their needs. The noble Lord, Lord Mendelsohn, seems to have rather a lot of problems with his broadband. I suppose that one good bit of news is that we will require providers to pay automatic compensation, so there will be a new incentive to maintain reliable, high-quality services. I am sure that we will discuss these provisions during the passage of the Bill.

I am passionate about enabling the digital revolution to provide improvements in this country. We are part of it in this country and the Bill will enable us to use government data to deliver better public services.

The UK must also do what we can to prevent any further cultural destruction. Our cultural protection Bill will make it clear that the UK views attacks on cultural property as unacceptable and will establish us as world leaders in the field of cultural protection. I particularly thank the noble Baroness, Lady Bonham-Carter, and the noble Earl, Lord Clancarty, along with many other noble Lords, who have given such strong support to the Bill and got it into this House today.

Today it has become clear yet again that the future of the BBC is a subject about which this House cares deeply. I have a long list of those who have spoken on that subject, starting with my noble friend Lord Fowler; we also heard from the noble Baronesses, Lady King of Bow, Lady Bonham-Carter and Lady Benjamin, the noble Earl, Lord Clancarty, and the noble Lords, Lord Stevenson, Lord Cashman, Lord Macdonald of Tradeston, Lord Clement-Jones, Lord Foster, Lord Watson of Invergowrie and Lord Addington. I apologise to anyone I have failed to mention. This will not be the first or last debate on the BBC.

We care deeply about the BBC and, as I set out last week, the Government believe that the BBC is one of our country’s greatest institutions. We have listened carefully to the views of 190,000 members of the public and those put forward by experts, organisations and independent reviews. As a consequence, the Government have set out a new framework. Under this framework, the BBC will focus on providing high-quality, distinctive content which informs, educates and entertains while continuing to serve all audiences.

A number of noble Lords questioned what a distinctive BBC would look like. The BBC is already distinctive in many ways, but the noble Lord, Lord Hall, director-general of BBC, has said that he wants to see,

“a BBC that is more distinctive than ever – and clearly distinguishable from the market”.

The Government support this and want to free up the BBC’s outstanding creative talent to take creative risks and push the boundaries, making sure that its output as a whole is distinctive from the market. Audiences can only gain from this, by getting more choice and outstanding creative programming. Given all that the noble Baroness, Lady King of Bow, said, I should add that diversity is also a key priority.

There has been concern about the role of Ofcom in setting the regulatory framework for the BBC’s distinctiveness record. Ofcom has a strong track record in media regulation, which has resulted in a diverse and creative media sector, and I look forward to further debate about the detail of that in the summer.

The noble Baroness, Lady Benjamin, also brought up children’s programming, an issue that is close to the hearts of parents across the UK. Children’s programming is a vital public service genre, which Ofcom has recently identified as being in decline. The Government have proposed a small contestable fund for public service content. The proposal is for a small-scale pilot for two or three years. The numbers are small relative to the £4 billion spent on the BBC. The specific detail about how it operates is important, which is why the Government will be consulting over the coming months on the most appropriate body to administer this fund and on the criteria for the scheme.

A further area noble Lords have drawn to our attention is the BBC’s vital international role. The Government believe that this is incredibly important, which is why the White Paper sets out protection for World Service funding. I do not think there were any subtleties in the point raised by the noble Lord, Lord Stevenson, but obviously I will take a look at it. The BBC will also have enhanced editorial and financial independence, while being much more effective and accountable through stronger governance and regulation.

Noble Lords raised the important issue of appointments. We are strengthening the independence of the BBC by giving it a powerful new unitary board, with the BBC able to appoint the majority of board members, unlike the BBC Trust or the governors, which were 100% public appointments. Whether made by public appointment or by the BBC board, all appointments will be expected to follow public appointment best practice, including having independent members on selection panels; those appointments made by the Government will follow the OCPA code; and the BBC will need to follow best practice in seeking public appointments, for those appointments it makes. Peter Riddell, Commissioner for Public Appointments, has welcomed this approach and these principles.

The issue of the health check was also raised today. Given the speed of change within the sector and the fundamental reform of the governance and regulatory structures that this charter will make, it would not be appropriate to wait for over a decade to review how the reforms are bedding in and whether any changes at all are needed. The charter will therefore make provision for a review to provide a health check, focusing on the governance and regulatory reforms at mid-term. The review will take into account the relevant findings and the most recent review of BBC performance that Ofcom will have published. There will also be greater scrutiny of the BBC’s efficiency record and stronger transparency requirements.

None of the heated speculation about the fate of the BBC has materialised. Instead, these reforms will mean the BBC can continue to thrive, deliver for audiences and act as an engine for growth. The Government intend to publish a draft charter in the summer, and I look forward to ample opportunities for further informed discussion and debate about the future of the BBC following publication. It is very clear that this House will make a valuable contribution to that debate.

My noble friend Lord Fowler and the noble Baroness, Lady Bonham-Carter, asked about Channel 4. The Government are looking at a broad range of options to ensure that Channel 4 has a strong and secure future in what is a fast-changing and challenging broadcasting environment. No decisions have been taken, and the Secretary of State said last week that the Government hope to provide an update as soon as possible.

I turn to education. In our manifesto, we committed to ensuring that higher education provides the best possible value for money to students. We said we would introduce a new framework to recognise universities offering the highest teaching quality and to provide students with more data to help them choose the course that is right for them. We also committed to ensuring we are investing strategically in our research base, following the recommendations of Sir Paul Nurse’s review. We will be doing all this through the Higher Education and Research Bill, while respecting institutional autonomy and academic freedom. The White Paper setting out our reforms has been welcomed by business groups, with the CBI commenting that,

“it’s good that the White Paper proposals have taken on board the business view—building on and expanding the diversity of our higher education provision, which already is a brilliant asset”.

We committed to a teaching excellence framework in our manifesto, which will drive up the standard of teaching. It will put clear, understandable information about outcomes in the hands of students so they know where teaching is best and what benefits they can expect to gain from their course. We will make it quicker and easier for new high-quality providers such as the New College of the Humanities or BPP to enter the market and award their own degrees, promoting a diverse and innovative higher education sector where students have more choice. To respond to the noble Earl, Lord Kinnoull, the Small Business, Enterprise and Employment Act 2015 made amendments to allow the linking of education data to labour market data, which will enable us to improve the robustness and coverage of progression following the student journey.

The UK research base is the most productive in the G7. Through our Bill, we will maximise value from our investment of over £6 billion a year in research and innovation. We will deliver on Sir Paul Nurse’s recommendations to establish a single, strategic funding body which will allow the UK to lead the world in multidisciplinary research. Royal charters are not the most appropriate structure in the current research environment, where we are merging multidisciplinary and interdisciplinary funding, which is coming to the fore. However, we believe that it is important to retain the international prestige and standing that the research councils have, which is why they will operate with delegated autonomy and authority as part of UK research and innovation. I hope that that will be some comfort to the noble Lord, Lord Rees, whose views I was very pleased to consider.

Your Lordships have heard that we will bring a wide-ranging education Bill to provide education for all in a school-led system. The noble Baroness, Lady Sharp, mentioned the importance of collaboration in education, which is central to our academy reforms. Our aim is that all schools will be academies, and funded fairly, although as my noble friend Lord Nash said in opening, we have removed the blanket power to convert schools. I hope this is welcome to the noble Lord, Lord Griffiths.

Excellence that comes with more teacher freedom will spread to every community. We have found that collaborative multi-academy trusts both do better and make schools feel better supported. Most of these operate in local clusters very well connected to their communities.

I am grateful to the right reverend Prelate the Bishop of Ely for his remarks about the importance of strong schools supporting weaker schools. We plan to support rural schools through the new national funding formula, and agree totally with his remarks about the importance of them collaborating together and with his comments about the vital importance of religious literacy. It is well known how good Church schools are at community cohesion. The SACREs continue to play an important role in supporting schools to teach high-quality RE. Local authorities have a statutory duty to support these activities and we do not have any plans to remove the duty.

Our work on academies will complement our programme to raise the quality of teachers, school leadership and governing bodies. I pay tribute to the establishment of the foundation for educational leadership mentioned by the right reverend Prelate.

I do not agree with the noble Lord, Lord Murphy, that the academy programme is against devolution. Devolution is at its heart a school-led system, devolving powers to our great teachers and leaders. We will consult in the coming months on the definitions and thresholds relating to underperforming local authorities so that there is agreement on where the need for action is clear.

The noble Baroness, Lady Massey, said that the school admissions procedures should be easy to understand. The White Paper stated clearly that that is our priority. The noble Baroness, Lady Tyler, asked about our plans on technical education. We are currently planning reforms that will ensure high-quality offers to young people that are simple and genuinely owned, understood and valued by employers. To deliver these reforms, the Government are working closely with an independent panel led by the noble Lord, Lord Sainsbury. We will publish the report and response shortly.

It has been an important debate on education; my noble friend Lord Nash will benefit from your Lordships’ comments. The truth is that we lag internationally on education measures. These changes will help to close the major productivity gap between our economy and other economies.

Improved education links into our forthcoming life chances strategy. This will set out our new approach to tackling poverty and transforming the life chances of the most disadvantaged children and families. I believe that everyone should be able to realise their full potential.

The right reverend Prelate the Bishop of Durham talked about the Joseph Rowntree work. The Government are committed to tackling inequality. The report does not make enough of the national living wage, the higher personal allowance or the extension of free childcare to 30 hours. Our life chances strategy will tackle poverty and disadvantage.

The Children and Social Work Bill is a key part of the Government’s ambition to make fundamental changes to the children’s social care system. The Prime Minister has made his personal commitment clear: he is determined to improve the life chances of some of the most vulnerable children. The Bill will make sure that the state meets its obligations as corporate parent—a long-standing concept—to support those in its care. It will introduce a care leavers covenant to support those making the transition to adulthood; improve decisions about adoption and long-term care, and promote the educational achievement of children who have been adopted. It will also promote professional standards and public confidence in the vital profession of social work.

The noble Baroness, Lady Tyler, and the noble Earl, Lord Listowel, talked about the mental health of children in care. We are investing £1.4 billion into children’s mental health services over the next five years. We recognise that children in care can be particularly at risk of mental health issues. Local areas are required to factor this into their plans. My noble friend Lord Nash would be delighted to meet with the noble Baroness, Lady Nicholson, to discuss her concerns about music. I welcome the support of the noble Lord, Lord Mendelsohn, in this area; forthcoming debates in this House will enable noble Lords to see and test the education and health departments’ careful thinking on implementation.

The noble Lords, Lord Cashman and Lord Freyberg, and the noble Baroness, Lady Sharp, all raised the question of arts, drama and the EBacc. I have an excellent response, and I think there might be merit in my writing to the noble Lords, setting out some of the detail on this very important subject, in which obviously, as the Intellectual Property Minister, I am extremely interested.

It is a pleasure to debate the vital issue of health and to continue to work towards a seven-day NHS in tune with the needs of Britain today. Our NHS is now treating more patients than ever before. Our Government are investing £10 billion to fund the NHS’s plan up to 2020 to transform its services—more than the sum that was asked for. I agree with the noble Baroness, Lady Walmsley, that GPs do a brilliant job. Of course, compared to 2010 there are almost 1,300 more GPs working and training in the NHS. To support implementation of the forward view, which was a concern of the noble Lord, Lord Taverne, by 2020-21 the Government will increase funding for the NHS, as I have already said.

We will bring forward a Bill that will enable us to meet our manifesto commitment to recover up to £500 million from overseas visitors and migrants who use the NHS by the middle of this Parliament. The Government intend to publish their response to the recent public consultation on the extension of charging by this summer.

The noble Baroness, Lady Walmsley, talked about childhood obesity, and we will launch our strategy in the summer. It will look at everything that contributes to a child becoming overweight and obese. Of course, the soft drinks changes announced by the Chancellor were but one step in making important progress.

The noble Lord, Lord Foster, asked about FOBTs. The Government understand concerns about this problem. We are continuing to monitor the matter. The last review of the stakes and prizes of gaming was in 2013; we will set out our views on the next one as soon as we can.

This debate has highlighted the many steps that this Government have taken to strengthen business, accelerate digital change, enhance the life chances of our citizens and further improve our schools and universities. I thank all noble Lords for their contribution to the debate. Their valued expertise will be required in supporting a number of challenging ambitions set out by the Government and—I emphasise this point—in scrutinising a number of important Bills. I look forward to many more discussions inside and outside the House. This is a one-nation agenda from a Government who empower people through competition and choice and who put the vulnerable first.

Debate adjourned until Monday 23 May.

Small Business, Enterprise and Employment Bill

Baroness Neville-Rolfe Excerpts

Wednesday 14th January 2015 Grand Committee

[The Parliamentary Under-Secretary of State, Department for Business, Innovation and Skills (Baroness Neville-Rolfe) (Con)]

My Lords, I am grateful to the noble Lord, Lord McKenzie, and to the noble Lords, Lord Mendelsohn and Lord Stevenson, for tabling these amendments and giving us the opportunity to debate how these clauses interact with other legislative duties on contracting authorities, which is the nub of this amendment. I also share the noble Lord’s appreciation of the fact that my noble friend Lord Young of Graffham has joined us. I take this opportunity to thank him for all he has done for small firms and for public procurement throughout his distinguished career, and latterly as the Prime Minister’s adviser. My noble friend explained the background but, given the concern expressed by the noble Lord, Lord McKenzie of Luton, perhaps I could add, on the subject of the changes to pre-qualification questionnaires, that these could disadvantage procurements where there are important special requirements. As my noble friend Lord Young explained, we want to remove burdensome PQQs. However, I understand that special requirements can still be built into contract advertisements or the invitation to tender.

For the benefit of the Committee, perhaps I could stand back and try briefly to answer my noble friend Lord Hodgson’s exam question about what we are trying to achieve. I reassure noble Lords that our intentions are focused and more specific than the amendments tabled and the comments made would suggest. While regulations we may make under the Bill should improve standards across the public sector, they will not remove the autonomy of local authorities to run their own processes and take responsibility for procurement decisions. I associate myself with some of the warm words used by the noble Lord, Lord McKenzie, about local authorities. I was glad to hear about the LGA’s work on procurement strategy because I know, from my many dealings with it over the years, that it comes to issues with an innovative and refreshing approach.

The clauses before us will allow the Government to place some additional obligations on contracting authorities about how they undertake their procurement processes. However, I assure noble Lords that this is not about taking control away from local government procurers, who will remain responsible for securing value for money. Moreover, when making regulations under Clause 38, the Government will ensure that the provisions of other legislation are properly considered and that the regulations do not conflict with them. Frankly, the last thing we would want is to be over- bureaucratic or Napoleonic, in the words of the noble Lord, Lord Whitty. Like my noble friend Lord Hodgson, we would like to see better, simpler documentation that makes contracts more accessible to small business and voluntary organisations. As my noble friend says, we need to bring in standards and yardsticks of good practice, although I am not sure that “comply and explain” would necessarily quite work here.

Turning to Amendment 35D, the Government are committed to both the Localism Act and the Public Services (Social Value) Act. We stand by the principles in those Acts. It is of course important for local authorities to be able to pursue legitimate policies that help suppliers win more business through procurement in support of their local economies. There is, however, a balance to be struck and EU procurement law, which we have implemented in our domestic legislation, places a duty on contracting authorities to ensure that procurements that are above the EU thresholds—essentially, £111,000 in central government and £172,000 outside it—or of cross-border interest, are awarded in a fair, transparent and non-discriminatory way.

To respond to a question that was asked, Clause 38 is not necessary to implement the directive. This is in fact being done under powers in the European Communities Act 1972—I can see that the noble Lord understands that—and we will be bringing forward regulations very shortly. The new Public Contracts Regulations 2015, implementing the EU procurement directive, will make it clear how contracting authorities can achieve policy through procurement in a legitimate way. The regulations will require that the policy to be delivered through procurement is linked to the subject matter of the contract, as well as satisfying the EU principles of fairness, transparency and non-discrimination.

Furthermore, having consulted on the use of the power in Clause 38, we have identified a number of examples on how we might use its regulation-making power. It may help if I mention one or two of those because they might help to meet some of the concerns expressed by the noble Lord, Lord Whitty. One example is of requiring awareness-raising as part of pre-procurement market engagement, which can of course help small businesses; another would be requiring procurement authorities to have due regard to lean procurement principles. This will increase efficiency and reduce timescales. Some of your Lordships will be familiar with these principles, particularly those who have worked in business. I have direct experience of using them on a clothing supply chain exercise to good effect. Of course, it was Dan Jones who did the original pioneering work on lean thinking in the automotive supply chain, which helped our industry to fight back.

We undertook an open consultation on these proposals and there was support from local government and the Local Government Association. The outcome of the consultation is published on the Cabinet Office website and this includes draft regulations to illustrate how we might use the power. The planned uses are complementary to the forthcoming Public Contracts Regulations that I mentioned. They also complement the existing best value duty created by the Local Government Act 1999, as well as the duties created by the Localism Act 2011 and Public Services (Social Value) Act 2012. We have placed the draft regulations illustrating the use of the power in the Library of the House. The noble Lord has obviously already seen them, but others may not have done.

This is not about centralising procurement. It is about ensuring that high-quality procurement processes are in place across the public sector. We are also looking to establish common standards of good practice, as the noble Lord, Lord Hodgson, was encouraging us to do. The noble Lord, Lord Whitty, suggested that we might be able to deal with this through guidance, but I am afraid that in this area guidance will not be sufficient on its own. The power that we are taking will allow the Government to make targeted changes over time and to place legal obligations on contracting authorities in relation to the procurement functions. I hope that that provides some reassurance and an understanding that this clause will not undermine the localism agenda.

On Amendments 35E and 35T, while we strongly support the aims of best value to make sure that contracting authorities consider overall value, including economic, environmental and social value, when reviewing service provision, we consider that there is scope to improve procurement processes and open up opportunities to smaller businesses. The need to improve procurement processes is supported by findings made by our mystery shopper service, which investigates concerns about procurement throughout the public sector. This service has found that over a third of all its new cases relate to concerns with poor procurement practices by local authorities. Therefore, excluding all local authorities from the scope of the regulation-making power and from the scope of the mystery shopper service would mean that we were not able to help local authorities to improve their procurement practices and investigate mistakes. Nor would we be able to help small business to achieve the share in procurement that we all want them to have.

The additional obligations placed on contracting authorities will be proportionate. We are also clear that they are not intended to take control away from local government procurers, who will remain responsible for securing value for money. Retaining the scope of Clause 39 to include local authorities is necessary to help us to continue to improve procurement practices.

To turn to Amendments 35S and 35X, the Government are, as I said, wholly committed to principles that support development of economic and social issues and which are designed to allow contracting authorities to take account of how their decisions affect local business, the local area, the environment and social value considerations. The amendments are not necessary, as Clauses 38 and 39 do not amend or undermine the Localism Act, the Local Government Act or the Public Services (Social Value) Act. The power in Clause 38 cannot be used to amend these Acts or any other primary legislation. While I do not believe that the amendments are required, I am pleased to reassure noble Lords that, when making regulations under Clause 38, the Government will ensure that the provisions of legislation, including these Acts, are properly considered.

Finally, turning to Amendment 35K, I understand the noble Lord’s wish to see contracting authorities report on how they have met their duties under the Public Services (Social Value) Act. However, we do not wish to pre-empt the review of the Act launched in September 2014 and carried out by a panel led by my noble friend Lord Young, which is due to report in the coming weeks. The review is giving detailed scrutiny to the 2012 Act and is considering whether it should be extended and how it might be extended in a way that continues to help small business. The review may make a number of findings and recommendations and obviously it would not be right to second-guess those findings.

I hope that, in the light of these various reassurances, noble Lords will agree not to press their amendments.

[Lord McKenzie of Luton]

My Lords, I start by thanking the noble Baroness, Lady Neville-Rolfe, for her detailed response. Listening carefully to what she said, I am a bit bemused as to why she feels unable to accept the amendments. There is nothing in them that conflicts with what she has said is the Government’s position. On Amendment 35K, I take the point that if the noble Lord, Lord Young, is in the process of undertaking a review, the wording might pre-empt that. From what the Minister said on timing, I hope that we will have the opportunity to revisit that on Report, as we will have the noble Lord’s report by then.

Can the Minister be more specific on what the problem is with Amendment 35D? If the Government support localism and the Public Services (Social Value) Act 2012, the amendment would simply ensure that due regard is given to the new powers in Clause 38, which are extensive, as my noble friend Lord Whitty said. On the reference to lean principles on procurement, what evidence can the Minister provide that that process has been successful in enhancing SMEs’ share of the public procurement process? That is important and it would be interesting to hear the Minister’s response.

The noble Lord, Lord Young of Graffham, gave us a first-hand exposition of why we have ended up here. My noble friend has further amendments on PQQs, which might be the opportunity to explore that.

[Baroness Neville-Rolfe]

Perhaps I may say a few things. First, the noble Lord asked why we could not accept the amendments. The difficulty is that we cannot accept amendments without legal effect. I shall think about what he is saying but that seems to be a problem. Secondly, he rightly reminds me that he asked about lean thinking in relation to local government. I do not know the answer today but it is a fair question and we will come back to him.

--- Later in debate ---

[Lord Cotter (LD)]

My Lords, I strongly support the amendment. As the noble Lord, Lord Mendelsohn, said, implementation is vital to put steel into this requirement. We know from our many contacts in the construction industry that many areas of business have a real concern to ensure that people given contracts are monitored. I hope that the Minister will at least take this away to consider it and respond promptly in due course. In particular, I have in my mind a lot of evidence that has come forward from the construction industry to say that people implementing the main contract do not always—frequently do not—pay the small business sector promptly.

I will say no more, because the noble Lord has made these points, but—to be brief and to the point— we must ensure implementation. I hope that the Minister will take this away and assure us that this implementation point will be considered, because I have heard this issue raised time and again over the years, as have many colleagues, particularly giving a contract to a main contractor and finding that suppliers to that main contractor do not get payment. Those suppliers are often small businesses, so I welcome the amendment.

[Baroness Neville-Rolfe]

I thank the noble Lord for this amendment. As we discussed on previous days in Committee, prompt payment is an extremely important agenda and we wish to encourage both contracting authorities and businesses to pay their suppliers on time, so I shall say a little more, as noble Lords requested, about what we are planning to do in this area.

The Government are committed to leading by example on prompt payment. When we consulted on proposals to tackle prompt payment in autumn 2013, there was widespread support across industry and with procurers. This resulted, rightly, in a commitment to legislate. The new public contract regulations, which the Government plan to bring into force shortly, will place a duty on contracting authorities to pay their immediate suppliers in 30 days, and include terms in their contracts to pass these 30-day payment terms all the way down the public sector supply chain.

The regulations were consulted on last autumn and we intend to bring these into force early this year. That should provide reassurance to smaller businesses further down the supply chain that they will be paid expeditiously, and will address some of the findings of the National Audit Office report published last week, to which the noble Lord referred. I was about to cite the same figure that he cited: in a third of cases, public sector clients have taken more than 30 days to settle payment. That is completely unacceptable and that report helps to make the case for these regulations, which I hope will attract cross-party support. Our determination in this area cannot be doubted.

As part of these same public contract regulations, contracting authorities would also be required to publish the number of invoices paid late to their first-tier suppliers on an annual basis to show how they have performed in this area. The Government are committed to developing guidance to ensure that the reporting on late payment is understood and aids transparency.

Our mystery shopper service is strangely named, but it enables SMEs and other suppliers to raise concerns about public sector procurement with the Government and have it investigated. It is a Cabinet Office service and assists in ensuring that the contracting authorities comply with these new measures and will name and shame poor payers through the fortnightly publication of mystery shopper cases on GOV.UK. In future, the service will be able to ensure proactively that the 30-day payment policy is being embedded by carrying out spot checks on contracting authorities.

The noble Lord, Lord Mendelsohn, asked whether the Minister could commit to write to the main suppliers to ensure prompt payment. Yes, we would be happy for the Government to arrange for an appropriate Minister to write to the strategic suppliers about this before the end of the Parliament. We are talking about 100 or so suppliers. Those are the strategic suppliers to whom the noble Lord referred.

On monitoring and implementation, in view of the time I agree to write to the noble Lord to set out the arrangements. However, we believe that these reforms are the right way to address the prompt payment of suppliers in the public sector supply chain. I know that the position is a little curious—we have met the same issue in other legislation that the noble Lord, Lord Stevenson, and I have debated—to have one set of regulations coming in under EU powers and then a domestic Act, but I am afraid that sometimes that has to be the way that we bring things forward, not least to make them happen in time. I hope that, if the noble Lord takes the two together, he will feel that we are approaching this in a sensible way and feel able to withdraw this amendment.

[Lord Mendelsohn]

I thank the Minister for that reply. I also thank the noble Lord, Lord Cotter, for his support. I reinforce the point that we both made that while all the measures that we have talked about have our support and we do not oppose this area, we raised the matter to make sure that the policy is strongly and fully implemented. While some of the measures that were outlined concern talking to the first-tier suppliers, the sheer notion of being able to challenge people, hold them to account and ensure that they understand they will never escape questioning on this issue is the power that we are keen for the Government to consider further. We remain strongly supportive of the measure and I beg leave to withdraw the amendment.

--- Later in debate ---

[Lord Deben (Con)]

My Lords, I would first like to say how pleased many of us are at the changes that the noble Lord, Lord Young, has just described. They will make a big difference for small firms around the country.

However, there is another part to this on which I hope that the Minister will be able to help. There are reasons to disagree with the specifics put before us, but the noble Lord, Lord Mendelsohn, has made it clear that he is seeking a response from the Minister that shows that she understands the real problem that is being adumbrated, which is that small firms often find that they are not competing fairly simply because what is asked of them is a much bigger ask than the same thing asked of a big firm. That is the fundamental issue.

There is a second part to that, which is the reaction of those who place the contracts. I am increasingly worried that, in the public sector, there is a safety culture that means that people would prefer to have a firm whose name they know and which they feel no one can blame them for taking on, even if that firm does not in the end do the job properly. It is much easier if it is a national company with a national name—when you have taken it on, nobody can make the complaints that they might make if you were taking on a smaller firm.

Even if the Minister is not able to accept these aspects, I wonder whether she would help us by saying what the Government intend to do to try to make it easier for the public sector to take on companies that might be less assured because they are smaller and because they have not had a contract of that kind before. Are there not serious institutional ways in which we could make that easier? I have not yet seen any indication that, in their plans, the Government have sought to make it less dangerous for a public servant to take on a firm that has perhaps not previously worked with the public sector or perhaps does not have such a long history of doing so. Where there is a risk involved, I think that it is a risk that the public sector ought increasingly to be willing to take if we are to have entrepreneurial innovation in Britain.

[Baroness Neville-Rolfe]

My Lords, as the noble Lord, Lord Mendelsohn, said, there is a good deal of common ground here, although we believe that we have most of the powers that we need, either in this Bill or in separate, regulation-making powers. I thank my noble friend Lord Young of Graffham for explaining the mystery shopper so clearly, and how PQQs have changed. I will come on to Contracts Finder in a minute.

On Amendment 35G, we consider that requiring a small business to pay a fee to access a public contract opportunity is a significant barrier to entry and should be stopped. That is why the Government’s intention in the draft Public Contracts Regulations 2015, which I have mentioned several times, is to help ensure that small businesses have free access to contract opportunities in one place. Moreover, the power in Clause 38 can already be used to make regulations to ensure that documents, information and any process involved in bidding for a contract are made available free of charge. The Cabinet Office will assess the impact of the reforms to be introduced through the draft Public Contracts Regulations before deciding whether to use Clause 38 to make regulations about providing free access.

The noble Lord, Lord Mendelsohn, asked how we will ensure that there is early engagement with suppliers and that small businesses are included. This is a very good question. Noble Lords will recall that our draft illustrative regulations demonstrate how the power could be used to require authorities to carry out pre-procurement engagement in a way that increases interest in bidding for procurement for SMEs. This could also help to bring in new SMEs and deal with the reputational issues, which was the issue behind my noble friend Lord Deben’s helpful intervention. I recall that, when I was in business, we had a similar wish to encourage new small and local suppliers. We held pre-engagement road shows to talk to the suppliers. Bringing in suppliers that we had not had anything to do with before led to new contracts being let to smaller suppliers outside the mainstream. That is not public sector experience, but it gives me confidence that we should be able to use this pre-engagement process to improve things.

We support the spirit of Amendment 35H and we are already doing more to promote transparency in public procurement. The procurement directive, which was intended to be transposed earlier this year, will require contracting authorities to disclose the number of above EU threshold contracts awarded to small and medium-sized enterprises, based on the EU definition. Contracting authorities will also be required to provide information on the number of bidders for a procurement, as well as reporting on the value of any contracts awarded.

The noble Lord, Lord Mendelsohn, said that too many prime contracts go to large suppliers. I cannot help but agree with that. The new Public Contracts Regulations will require contracting authorities to explain why they have not broken down large requirements into smaller lots. As my noble friend Lord Young, said, there will be a new Contracts Finder website, which will advertise all central government contracts over £10,000 and local government contracts over £25,000 free of charge. As has been said, the site is already attracting international interest and comment. The regulations will also place an obligation on a contracting authority to report, for contracts of £10,000 and above for central government and £25,000 and above for other authorities, on whether the successful bidder is a small or medium-sized enterprise or a member of a voluntary community social enterprise organisation, and on the value of the contract awarded. I think that that is important. Contracting authorities will be required to publish this information on Contracts Finder.

--- Later in debate ---

[Lord Hodgson of Astley Abbotts]

My Lords, I share the wish of the noble Lord, Lord Young, to encourage vocational education. It is exceptionally important as a means of improving youth employment. However, I am slightly concerned about the route for apprenticeships, He knows far more about this than I do, but when I take part in the Lord Speaker’s outreach programmes and we talk about apprenticeships to sixth formers, too often they feel—and I think they are probably right—that the apprenticeship is a time-based qualification, not a performance-based qualification. That is to say that you have to spend a certain amount of time doing a job before you can get a qualification.

That puts off sixth-formers, who think that even if they are good they cannot move through the apprenticeship scheme at the speed at which they acquire the skills. That is something I have often referred to. I would be nervous about trying to put too much weight on apprenticeships. I am keen on youth employment, but apprenticeships are potentially too narrow, particularly given the comments made to me by sixth-formers, which may or may not be entirely accurate.

[Baroness Neville-Rolfe]

My Lords, I thank the noble Lord for his amendments. I am delighted to see him joining us in the Committee and giving us this opportunity to debate apprenticeships, about which both he and I feel a great passion. I will try not to let that get in the way of objectivity. Apprenticeships are also at the heart of the Government’s drive to equip people with the skills that employers need to grow and compete. It is great to have so much support for apprenticeships in the Committee today. It was interesting to hear about the experience of the noble Lord, Lord Cotter. We need as big a body of support for apprenticeships as we can get, and one needs to encourage people one knows in business and where there are public procurement opportunities to think about apprentices more.

We have already delivered 2 million apprenticeship starts in this Parliament, and there are 20,000 apprentice vacancies around England at any one time. However, I share the noble Lord’s concern about getting enough young apprenticeships. That is one of the reasons why the Government are trialling a new approach to apprenticeships in 2014-15 and 2015-16. He and I have talked about that, and I am involved in work with the electronics industry and the professional services to try to bring forward new thoughts and new numbers. The Government have made the apprenticeship grant available for employers—£1,500 targeted on smaller businesses taking on young apprentices. That ticks two boxes at once.

I also agree with the comments that the noble Lord, Lord Young, made on Crossrail. The work that it has done on apprenticeships has been a model. Like him, I have been under Fenchurch Street station and have seen what it is doing there. It has also been very good about trying to employ smaller suppliers both directly and through subcontractors—and small suppliers outside London.

We want it to become the norm for young people to choose between an apprenticeship and university as alternative routes to a career—an experience that I am familiar with in Germany—and this Government’s reforms lay the groundwork for that. I pay tribute to all that my noble friend Lord Young of Graffham has done.

On Amendment 35L, I have sympathy for the noble Lord’s intentions that a contracting authority should require an appropriate number of apprenticeship opportunities. However, as I am sure he is aware, not every procurement will be an opportunity. Contracting authorities are entitled to deliver legitimate policies through their high-value procurements but, under EU law, these must be linked to the subject matter of the contract and the procurement must meet principles such as equal treatment, fairness and transparency. It would, therefore, not be possible to require that every procurement delivered an apprenticeship.

There would also be a danger that requiring the provision of apprenticeships by contracting authorities could pass on costs to bidders and actually deter smaller businesses. If so, this would undermine the purpose of Clause 38, which is to open up procurement opportunities to smaller businesses and remove barriers to their participation. If contacting authorities must require an appropriate number of apprenticeships, assuming that that could be determined—it sounds quite difficult—would that stop smaller suppliers bidding, as they might not have resources available to allow them to meet the expectations and duties of the contracting authority in this regard? I know that that is not a perverse effect that anyone wants but it is one reason why the Government are concerned about that amendment.

On Amendment 35M, I agree with the noble Lord, Lord Stoneham, that there is a huge scope for local enterprise partnerships and schools to work with SMEs to deliver more training and apprenticeships when these organisations bid for public contracts. The new Contracts Finder—to look at this amendment in the light of the previous one—will be helpful in spreading knowledge of opportunities, with details of contracts on the website. However, as with Amendment 35L, we must be careful that any provision for delivering apprenticeships through procurement does not have the unintended consequence of adding to the cost of public procurement for contracting authorities and bidders. We encourage schools, LEPs and other public bodies to work with SMEs on apprenticeships, but we are not convinced that they should be under a legal duty to do so.

Finally, Amendments 35N and 35W relate to assessing and reporting on the extent to which apprenticeships form part of public procurement. Again, I have sympathy with the noble Lord’s intention, but I fear that these amendments could again risk passing a burden down the supply chain to smaller businesses. Only by asking them to report on this could we determine the number of apprenticeships and recruitment practices involved. It is precisely that sort of red tape that we seek to cut in this Bill. While I agree that transparency, reporting and reviews are helpful in this sphere of apprenticeships, we need to be careful to balance that with the reporting burdens that it would place on small businesses. Again, I am sure that that is not the noble Lord’s intention, but it could be a perverse effect of legislating in the way proposed.

I hope that the noble Lord feels reassured, understands that we share a similar objective on apprenticeships, and will understand why we feel that we cannot accept the amendments. I ask him to withdraw Amendment 35L.

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[Baroness Neville-Rolfe]

My Lords, I am grateful to the noble Lords for their amendments. I shall start by commenting on the wisdom of my noble friend Lord Eccles, who often causes us to pause in our legislative discussions. I am not sure whether he was present when we started this afternoon and I took the Committee through the rationale and explained how we plan to use the regulations. I am glad that he is planning to look at the draft regulations and I would be very happy to discuss them further with him if need be. The clause will provide the Government with the powers to make regulations that help small businesses bid for public sector contract opportunities that are currently worth £230 billion per annum. That is at the heart of our problem: as many noble Lords have asked this afternoon, how do we get the share of that cake up for small business? That is our common wish.

As for these amendments, I want to reassure the noble Lord that the Government are considering carefully the recommendation of the Delegated Powers and Regulatory Reform Committee, but we also need to consider the implications for timely delivery. The Government are not yet convinced that it is necessary for the affirmative procedure to be used every time the power in this clause is used. Regulations about procurement have in the past been made under the negative procedure and some of the matters dealt with in regulations in this area are very technical and need to be adjusted over time.

Taking an example, the illustrative regulations we have recently published list a number of practical steps that could be taken; for example, on pre-procurement marketing. It may be necessary in the future to amend that list to describe new recommended forms of pre-market engagement. Is the affirmative procedure necessary or appropriate for every such change? Similarly, as the recently published Cabinet Office policy statement makes clear, regulations could be used in the future to prescribe minimum and maximum timescales. Would a modest change to one of those require the affirmative procedure?

We are actively considering these issues and what we can do to increase the level of parliamentary scrutiny attaching to this clause, which is the purpose of this amendment. One option would be to have an affirmative resolution on the first occasion to set the strategy for the regulations, and negative thereafter. It would be good to understand how noble Lords feel about that.

Turning to Amendment 35Q, as we have debated in relation to previous provisions, the use of “may” instead of “shall” is standard practice in relation to drafting of this sort. Our intention is to issue guidance about the regulations and to publish it in a way that makes it accessible to contracting authorities and suppliers. I can reassure the Committee that, if the Government consider that guidance would help contracting authorities or others to understand the regulations, we are committed to issuing it. We will also implement—I think that this is called for, from the conversations we have had today—an extensive communications strategy prior to the implementation of the regulations in order to ensure that key messages are understood and embedded. That will appear on GOV.UK and be very accessible. I hope that, in the circumstances, the noble Lord will agree to withdraw these amendments and, clearly, I would be interested to discuss the issue of parliamentary scrutiny.

[Lord Mendelsohn]

My Lords, I thank the noble Viscount, Lord Eccles, for his observations and I apologise if I was not clear. The issue here, as was pointed out by the Delegated Powers and Regulatory Reform Committee, is that there are no limits in the Bill on the kinds of duties relating to the exercise or procurement functions that can be imposed and it does not derogate the generality of that power. So there is a question about the breadth of that power and that is why there is great benefit in debating these things.

The committee, whose view we share, was also unconvinced by the arguments of the Government. If there is an issue about some of the technical aspects as described to the committee—the economic circumstances or elements where speed is of the essence—we would be more convinced if the Government were able to give more detail on the circumstances in which those would be applied. Given everything, it does not sound particularly compelling and we are in deep sympathy with the Delegated Powers and Regulatory Reform Committee on that. In the circumstances, since it may be possible for the Minister to write to give us more details, I will use this opportunity to beg leave to withdraw the amendment.

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Moved by

[Baroness Neville-Rolfe]

36: Schedule 2, page 151, line 34, after “fine.” insert—
“(2) Until section 85(2) of the Legal Aid, Sentencing and Punishment of Offenders Act 2012 comes into force, in subsection (1)(b), “a fine” is to be read as “a fine not exceeding level 5 on the standard scale”.”

Birmingham Schools

Baroness Neville-Rolfe Excerpts

Monday 9th June 2014 Lords Chamber

[Baroness Hussein-Ece (LD)]

My Lords—

[Baroness Neville-Rolfe (Con)]

My Lords—

[Lord Pearson of Rannoch (UKIP)]

My Lords—

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[Lord Nash]

It is true that in recent years, Ofsted has strengthened its inspection regime by recruiting inspectors who speak Arabic and Urdu and are trained in the various Islamic ideologies, but we have today announced many other actions that we will be taking in relation to those schools. I do not accept that it is as a result of recent government actions that these things have happened. The noble Baroness may believe that these things have suddenly turned around; they have in fact taken root in these schools over many years, particularly under the previous Government, but it is this Government who have dealt with those points.

[Baroness Neville-Rolfe]

The Minister painted a very worrying picture, and we should all work together to improve things. The use of special measures in the Birmingham schools and the prospect of unannounced inspections are good things. In my experience, both in government and in business, they can make a huge difference, so I do not agree with the noble Baroness, Lady Morris, on that particular point.

What wider measures can be taken in schools to tackle the culture that breeds terrorism? Examples might include preventing teaching about suicide bombing, reducing gender segregation and even, perhaps, looking at copying the French, who have prevented various forms of face covering, in addition to the Minister’s proposals for banning extremist speakers and, above all, promoting British values.

[Lord Nash]

The noble Baroness is quite right. I outlined in the Statement the other actions that we will be taking, including, as she says, promoting British values. One issue that has come out of these Ofsted reports is the importance of keeping children safe on the internet. It is widely known that the biggest recruiting ground for extremism is the internet, so it is particularly important that we focus on that issue, as the Government are. As I said, we will be taking steps to ban teachers and governors from promoting extremism.

Education: Vocational Education

Baroness Neville-Rolfe Excerpts

Monday 3rd March 2014 Lords Chamber

Asked by

[Baroness Neville-Rolfe]

To ask Her Majesty’s Government what assessment they have made of the approach taken by Germany and Austria in promoting vocational education; and what lessons they have drawn for the United Kingdom and UK competitiveness.

[The Parliamentary Under-Secretary of State for Schools (Lord Nash) (Con)]

My Lords, in Germany and Austria, vocational education is of high quality and closely involves all local employers, which in Germany is sometimes on a compulsory basis. Of course there are differences between our countries, but there is much we can learn from them. This has informed our reforms of vocational education and Professor Alison Wolf’s review. By introducing the tech bacc and tech levels, reforming apprenticeships and through our UTCs and studio schools, we are expanding high-quality technical education while at the same time ensuring that industry is involved at every step of the way.

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[Baroness Neville-Rolfe (Con)]

My Lords, I thank the Minister for that welcome news. We all valued the visit of Chancellor Merkel to Parliament last Thursday, during which she spoke of competitiveness. The German education system does a better job for the nation’s economy and for the less academic partly by ability streaming in schools with the possibility of switching between streams. This provides better educational outcomes and a larger, better pool of talent that can be apprenticed to German business, which is very actively involved. Can we improve our PISA scores and our business performance by doing the same in our schools?

[Lord Nash]

My noble friend is quite right that the PISA results were a stark wake-up call for all of us about the need to improve our education system across the board in order to compete internationally. In comparison with Germany, we do particularly badly on maths and science. To achieve improvements, we are continuing to introduce a whole suite of reforms, as noble Lords know. As for streaming, we believe that all pupils need a core body of knowledge and indeed I understand that Germany is now extending the period during which their pupils have this. However, there is much that we can learn from Germany. Our UTCs and studio schools, of which we have now approved almost 100, are modelled closely on the success of German technical schools, as are our higher apprenticeships.