(5 years, 5 months ago)
Commons ChamberIt is not the Treasury’s rise; it is the European Union’s rise. In considering the reasons why he supports staying in the European Union, the right hon. Gentleman has to address the fact that these are EU regulations that we are putting in force while we remain a member. We will have the freedom in future—and, I hope, his support—to deal with such VAT issues once we are out of the European Union.
Of course. I will happily meet my hon. Friend. I pay tribute to the work he is doing in driving forward the hopes and dreams of those involved in the Mansfield bid for the future high streets fund. Many areas across the country will not have succeeded in going through to the business case of the first round of the fund. I remind them that the fund will open again to applications very shortly—[Interruption.] That includes the hon. Member for Ashton-under-Lyne (Angela Rayner), who is complaining from a sedentary position on the Labour Front Bench. We will see what we can do.
(5 years, 6 months ago)
Commons ChamberIt is good to have the opportunity to speak in this debate, and it is a pleasure to follow the hon. Member for Easington (Grahame Morris), who raised some important points and set out a measured and non-partisan case, which is exactly what is required in this discussion.
I am proud to represent Mansfield and Warsop in Parliament. For most of the 20th century, mining was the most important industry and my constituency still has a proud coalmining heritage. It still dominates many aspects of our area and I have been working on the mineworkers’ pension scheme since I was elected. I have regularly met with the mineworkers’ pension campaign team and constituents affected by this important issue. I have held meetings with Ministers and trustees to help to lobby for changes to the terms of the scheme. This has been a very frustrating process; we have been through so many Ministers now, explaining and making the case each time. In March, I was pleased that the former Minister met a delegation, including Les Moore and my constituent Mick Newton, who has been a brilliant local campaigner on this issue in Mansfield. Mick, alongside campaigners including Trevor Cooke and many others, has been lobbying on the issue for many years.
I recognise—as do the Ministers with whom I have had this discussion—that the Government have done far better out of this scheme than they ever imagined when it was first agreed. The arrangement that was settled back in the 1990s saw the UK Government acting to guarantee the scheme and all pensions in cash terms in return for a 50% share of future services. It is important to recognise the importance of the Government guarantee and the protection it has provided to former miners. It means that the trust has been able to invest with security, and it has done incredibly well with those investments. Some credit for the fantastic investment returns made by the scheme has to come back to the fact that the guarantee allows the trust to invest without risk. That being said, time has moved on. The risk has moved on—it is not the same as it was back then—and I believe there is a case for revisiting the sharing arrangements, that the balance should be tipped in favour of the miners, and that the recipients of the scheme should keep more than 50%.
I am curious to understand what the hon. Gentleman has just said. He thinks that now is the time for the scheme to be tipped in favour of the miners, but what about before?
I thank the hon. Gentleman for that, but I think it was a fairly pointless question. I am not in a position to go back and change the past. I am here in this Chamber talking about now.
The Government have had far more income from the scheme than they ever imagined. Many of the beneficiaries who are still with us are increasingly suffering with industry-related health conditions and are in need of support. It would be relatively simple for the Government to shift the balance, perhaps by offering a 70-30 split or going even further. The risk to the Government and the taxpayer is not what it was in 1994. We can split hairs about when the right time to do this might have been, and it was probably several years ago, but we are here now and we are talking about it.
Colleagues have gone into great detail about the costs and benefits of changing the balance. I have sought to do so previously with Ministers, but I feel that the best advocates for the change are the mineworkers themselves. That is why I have sought to get them together with campaigners, trustees and the Government to discuss this. I believe it is now time for the Government to undertake a formal review of the arrangements and consider the case for reform in proper detail.
Former coalfield communities are among the poorest in the country, and older people in particular struggle to make ends meet without savings and without much support beyond their pension arrangements. These coalfield communities are among the hardest working and longest suffering in our country, as the hon. Member for Easington said. The miners worked in darkness so that we could have light and, although much of that happened before I was born, I have every respect for those constituents in my community who worked incredibly hard to look after the rest of us and to ensure that we could have the quality of life that we expected.
Ensuring that miners can keep more of the surplus from these investments will have a life-changing effect. Many of them are on low incomes and it would help to boost their lives individually while they are still around to spend that money. It would also help to boost whole communities, such as mine in Mansfield and Warsop. As my hon. Friend the Member for North West Leicestershire (Andrew Bridgen) said, more money in miners’ pockets in communities such as Mansfield is money that will be reinvested back into those deprived communities and help to boost them.
Some have suggested an increased guarantee as a compromise to cover the scheme’s bonuses, but although that sounds nice—and sounds like Government doing something—it will not put any extra money into the pockets of those miners. It would merely guarantee what they already get. We have already seen that the risk of needing that guarantee is very small, so I do not think that that is good enough. This is a chance for the Government to show that we are on the side of people who have worked hard and paid into the system, and that we will help them. To me, that is what the Conservative party should be about, so I hope that the new Minister and his Department will work alongside the Treasury and the trustees to review the scheme and to ensure that the hard-working miners who gave so much to their communities, including in Mansfield, will receive their fair share. I look forward to discussing this with him further.
(5 years, 9 months ago)
Commons ChamberI understand from the Under-Secretary of State for Business, Energy and Industrial Strategy, my hon. Friend the Member for Rochester and Strood (Kelly Tolhurst), that she is currently negotiating the banking framework. I also want to set out the support that the British Business Bank gives to start-up businesses: 3,200 businesses have received £22 million in funding in recent years. We have 48,000 more businesses in Scotland compared with 2010. That is good news, and we need to make sure that we continue to support businesses, particularly the rural ones the hon. Gentleman mentions.
We are backing young entrepreneurs by launching an independent review, led by the Prince’s Trust, to understand how we can better support them to turn their business dreams into reality. We are backing small and medium-sized enterprises with our spending power, with our ambitious strategy to ensure that at least £1 in every £3 we spend as a Department is spent with smaller businesses by 2022.
I thank the Minister for bringing forward the future high streets fund, which will be really important for small businesses on Mansfield High Street, and for the meetings I have been able to have with the Government about how to make sure that Mansfield can benefit. The council is now consulting with stakeholders on its proposals. Will Ministers agree to meet me so that I can make the case for Mansfield’s bid to the future high streets fund?
My hon. Friend is right. High streets are changing, and the Government are committed to helping communities adapt. In the Budget, we set out our plan for high streets, with a £1.6 billion package to support the sustainable transformation of our high streets, which includes the future high streets fund. My hon. Friend is a passionate campaigner for his town, and I would very much welcome the opportunity to hear his proposals for the regeneration of Mansfield town centre, coupled with the investment and plans already being put in place through the growth deal.
(6 years, 1 month ago)
Commons ChamberI will always engage with anyone who has a view on this particular issue. We are evaluating shared parental leave and pay to look at the barriers to take-up, including those affecting self-employed people and mothers, particularly, who qualify for maternity allowance. We are currently evaluating that and we will be reporting on that next year. However, I will meet with those people.
I recently met Mike Watkinson from Nottinghamshire’s Federation of Small Businesses to discuss a number of challenges facing business in Mansfield, one of which was support and access to benefits for self-employed people. Does my hon. Friend agree that, as the party of business, it is absolutely vital that we help small business owners and support them to keep the show on the road when they need it?
(6 years, 1 month ago)
Commons ChamberIt is a pleasure to follow the hon. Member for Battersea (Marsha De Cordova). I am pleased to have the opportunity to speak in today’s debate and to welcome this Budget, which is a positive one for my constituents in Mansfield and Warsop.
It was not a major headline, but I was especially pleased that the Government committed in the Red Book to support communities to make the most of their local assets, including village halls and miners’ welfare facilities, and that the Treasury has listened to my representations on that subject. Only last week in Westminster Hall, I asked the Government to support miners’ welfare facilities and boost funding for their upkeep, particularly for sports facilities. During the debate I spoke of the importance of those facilities for coalfield communities, especially in terms of sports provision, as they exist in areas that generally top the statistics in terms of poor health and inactivity. Help to manage and improve those facilities, which were once the heart of coalfield communities, can bring them back to life and get more people engaged in sport and physical activity, which will save money for our local services and the NHS.
The future high streets fund is a great initiative. Mansfield town centre is a huge local priority of mine, with some brilliant local shops on the high street. I hope that the availability of this funding to support positive and regenerative plans will add further pressure to my calls for Mansfield District Council to pull together a proper plan and vision to regenerate the town centre.
The Chancellor’s commitment to help small shops by cutting business rates by a third for small retailers is also great news for Mansfield. It will mean an annual saving of up to £8,000 for up to 90% of all independent shops, pubs, restaurants and cafés and can help us to fill high street lettings, to give much needed breathing room to small businesses and to assist in bringing people back to the high street. In next year’s comprehensive spending review, I would like to see the Treasury go further and undertake a fundamental reform of business rates. It is a 20th-century tax in the 21st century, and we need to look at it more closely. Those two announcements for town centres are very welcome and will no doubt receive widespread support from my constituents.
The other key issue addressed in the Budget is the cost of living. Thanks to careful management of the economy, we were able to announce that the personal tax allowance threshold will be raised a year early, letting people keep more of the money they earn and helping with the cost of living. Combined with the rise in the national living wage, that means that full-time workers in my Mansfield constituency, where so many people have low incomes, will see over £600 a year more in their pockets. That is so important for normal people who are trying to get by and do right by their families, and I am pleased that this Government have put them at the heart of this Budget.
Nobody should pretend that anything is perfect, so there has to be something that I would have liked to see in the Budget. If I have one criticism of the Budget, it is that, while I have seen examples of where the additional one-off support of £400 million for schools can be utilised in a positive way in my constituency—I can think of several primary schools I have visited that will relish the prospect of kitting out their library properly or investing in new IT for students—we need to focus more on what should always be the No. 1 priority, which is educating our young people for the future. I hope that the comprehensive spending review in the new year will seek to address that. However, it is not always about splashing the cash. There are a number of ways in which we could help. I have put forward proposals to the Treasury on helping schools to reduce their building and maintenance costs, for example.
Plans for investing in our mental health services and social care are good news. I particularly welcome the announcement that the use of PFI for future projects such as hospitals and schools will be abolished. The Labour party agreed nearly 90% of all PFI contracts. King’s Mill Hospital, near my constituency, is one of the most expensive examples in the country, frittering away taxpayers’ money and ultimately making it harder for the NHS trust to manage its budget. It is great news that that will not be allowed to happen again. That is part of Labour’s legacy, along with high unemployment and trapping people on benefits, and this Government are working to address those issues.
Universal credit is a key component of that change. It was positive to hear about the transitional funding to support the migration process and that working people on low wages will get an additional boost through the new money announced by the Chancellor. I thank him for that, as it will be a particular help to people in my constituency.
When we came into government, the country was borrowing over £150 billion a year and unemployment had increased by nearly 500,000. Britain had suffered the deepest recession since the war and we had the second biggest structural deficit of any advanced economy. Now, more people are in full-time work, unemployment is lower in every region of the UK, and wage growth is at its strongest for 10 years and is predicted to keep growing. As a party, we should be focused on cutting taxes, putting that money back in the pockets of hard-working people, and giving them the opportunity to succeed on the basis of their own talent and hard work.
As we leave the EU, we should grasp those opportunities, be proud of our businesses and industries, as the Secretary of State set out, and invest to secure our status as a world leader in so many areas. We must be able to export that leadership to the whole world to ensure the economic growth that Conservative Members know leads to jobs, wage growth and prosperity for the whole of the UK.
(6 years, 5 months ago)
Commons ChamberThere used to be those who said it is not possible to have protection for minimum-wage workers and lots of jobs. How wrong they are! Today, thanks to a Conservative Government since 2010, we have record employment, and a full-time worker on the minimum wage is now £3,800 better off thanks to the wage legislation we passed and changes to the income tax personal allowance. Since 2015, we have doubled the budget for enforcing the national minimum wage, and last year we identified a record 15.6 million workers who were not being paid properly for low-paid work.
That is an excellent point, and it is quite right that small employers who may struggle with some of this are encouraged to do so. We have taken up to £3,000 off their national insurance contributions bill through the employment allowance. We have cut corporation tax from 28% in 2010 to 19% today, and we reduced business rates to the tune of £2.3 billion in the 2017 Budget. All that is going into small employers’ cash flows, so they can pay their workers what they deserve.
The latest figures show that weekly wages in Mansfield are notably—several hundred pounds a week—lower than the national average. Projects such as the Heathrow logistics hub could provide huge opportunities for my constituents, but what support are the Government offering to help low-wage areas such as Mansfield and Warsop attract such high-skill and well-paid jobs?
I commend my hon. Friend for fighting tirelessly for his constituents. I basically reassure him that, through the industrial strategy—it, of course, sets out our long-term plan to boost productivity and earning power across the country—we are supporting the development of local industrial strategies to drive up productivity, because productivity increases are what drive pay increases.
(6 years, 6 months ago)
Commons ChamberThe hon. Lady makes an excellent point, and this was one of the reasons we commissioned the Matthew Taylor report, to which the hon. Member for Salford and Eccles referred. Knowing that employment patterns are changing and that different types of businesses are entering the market, it is right to consider what regulatory requirements we need in this new world to maintain the high standards we have insisted on in this country. That is the type of preparation—the strategic anticipation of what is required—that we are engaged in.
I applaud the way in which, in this time of adjustment, to prepare for the future, the retail sector is coming together, with its players working jointly. It has always been a rather fragmented sector, but in recent months we have seen a real sense of purpose in its coming together to work jointly with the Government and with local councils, as my hon. Friend the Member for Torbay (Kevin Foster) said, to address the challenges it has faced.
Does my right hon. Friend agree that, as well as working at a national level to recognise the changes needed in our high streets, it is important that local councils work with local businesses to put in place a plan and vision for what the town centre needs to look like in future?
My hon. Friend is right about that. The hon. Member for Salford and Eccles referred to local industrial strategies. The reason they are part of the industrial strategy is that the vision we have set out, informed by local councils, local leaders and retailers, is that that local dimension and knowledge, as I mentioned to the hon. Member for Great Grimsby (Melanie Onn), is vital in ensuring we have prosperity. So the sector was a major contributor to the development of our industrial strategy.
One commitment we made was to establish the Retail Sector Council, so that firms, large and small, can work effectively with each other and policy makers, emulating the successful model that the Automotive Council UK and the Aerospace Growth Partnership have established, with which Members are familiar. The RSC is chaired jointly by the Under-Secretary of State for Business, Energy and Industrial Strategy, my hon. Friend the Member for Burton (Andrew Griffiths), and Richard Pennycook, who, as many Members will know, is the former chief executive of the Co-op and one of our most respected retailers.
The RSC is bringing the sector together to work with Government and local councils, making recommendations on the areas of challenge that have come up already in today’s debate. Those include business rates, where the Government have made a clear commitment to make sure that the system is up to date for a world in which people increasingly shop online. Of course, that builds on the commitment we have made to wider business rates reforms and on the relief that has been given following the recent revaluation. That stands in stark contrast with the record of the Labour party, which doubled the average business rates bill during its time in office. We are protecting the small businesses in this country from its increase.
It is a pleasure to follow the hon. Member for Blaydon (Liz Twist). As we are all sharing our retail experiences, I should declare my interest, as a former store assistant at Aldi—a fine and enjoyable job it was too.
I welcome the opportunity to discuss the retail sector and what the Government are doing to support business. Some interesting points have been raised in the debate. The discussion about the future of business rates when these activities are increasingly online is particularly important. I want to focus on town centres and high streets, as many Members have.
Like most towns across the country, Mansfield’s and Warsop’s marketplaces and high streets have suffered from retail closures. That is happening right across the country, with the structural change in how people are shopping and what our town centres look like. Many people are shopping online or visiting out-of-town retail parks rather than visiting their local town centres. Mansfield has some great shops on the high street, from big names to cafés, bakeries, barbers and hairdressers, clothes shops and a fantastic vinyl record store that drags people in from miles around, but there are many empty units too. On Church Street, where my office is based, and around the corner on to White Hart Street, there are more empty properties than occupied ones, and there is clearly work to be done to deal with that.
Locally, I have been looking at ways to encourage consumers back into the town centre. One example is my recent campaign for two hours’ free parking in the town centre. Last month I submitted a petition signed by more than 2,000 local residents to Mansfield District Council. When parking is both an expense and a hassle, it puts people off visiting their high street, particularly when they can visit nearby retail outlets such McArthurGlen or Meadowhall—they are very close by—where parking is free and things are more convenient. Having handed in the petition, I hope that the council will look at this closely. Whether it is about cost, accessibility, clearer signposting for parking or other aspects, this is an important factor.
It is unfair to criticise the Government for inaction or for not supporting the retail sector. In fact, if any party in this place is the champion of businesses and works hard to support small businesses, it is clearly the Conservative party. As the Secretary of State said, record numbers of new businesses are being created under this Government. We have all talked about the challenges for town centres, but we have talked less about the growth in retail more generally, including the jobs—my hon. Friend the Member for North East Derbyshire (Lee Rowley) pointed out that there are jobs in logistics—that are linked to online retail and to this sector.
Earlier this year, the Government launched the first industry-led retail sector council, which will meet regularly to discuss the challenges facing this sector. It will review how retailers might adapt to changing consumer behaviour, and look at how we might embrace technology to improve customer service and productivity. Town teams are a great initiative, and as a local MP I am looking at how we might replicate and organise ourselves in such a way to boost our town centre.
In April, the Government switched business rates from RPI to CPI, a change which is worth £2.3 billion over the next five years in reduced business rates, including of course for many retailers. They have also committed to supporting business improvement districts. Locally, the Mansfield BID is working hard to support retail by bringing retailers together and discussing how the town should look, and to encourage people into the town centre. Mansfield BID is ably led by the fantastic Mr John Sankey and his fantastic team.
There are things that local MPs can do. I have already mentioned the free parking campaign and the locally organised town centre team, which includes local business. I am also working with Lloyds to support small and medium-sized businesses and charities by giving them digital skills to help with online marketing and boosting the customer base of high street shops. SMEs are at the heart of Mansfield’s local economy. Data from the last census shows that over 9,000 people in Mansfield work in wholesale and retail, making it a huge source of employment. It is the largest industrial sector both locally and across the country.
Although there are lots of scare stories about automation and technological change, it is important that we acknowledge the changing face of retail. We need to embrace this technology and look to the future in relation to how it can improve productivity and lead to upskilling jobs. The fourth industrial revolution, as it is often called, can be harnessed as a positive thing for retail. Technology can improve payment systems and provide support for businesses behind the scenes, such as in accountancy and payroll, thereby reducing the costs that are causing some of the challenges. Internet selling and online marketing can of course boost retailers and ensure that they can reach markets right across the UK and even further afield. Post-Brexit, the ability to do so in new and emerging markets around the world will be a real opportunity not just for high streets, but for the retail sector more generally.
As high streets and town centres evolve, it is important that the planning system develops to support the changing face of retail. This needs local councils to step up with a clear vision and plan for their high streets, and to use the tools at their disposal to deliver on it, while bringing retail and business into the discussion in order to drive footfall through our town centre. In the modern age, having a dentist or a solicitor’s office on the high street, along with cafes and restaurants, is as valuable as pure retail in that it drives footfall, fills empty shops and makes our towns into places to which people want to come. Those are businesses whose output cannot be put online—people must always physically visit them—but when we go to the dentist in the town centre, we might stop and have lunch or peruse the shops, boosting the town more generally.
I encourage the Government to consider the ways in which they can further help local councils with such plans to improve town centres. Regeneration is an important factor for the retail sector as a whole, and there are changes that could help, such as a local vision for delivering a change of use for properties. My most regular question in conversations with Mansfield District Council is: “What is your vision for the town centre? Where are we going to be in 10, 15 or 20 years?” I am not sure that we are yet clear about what exactly its plan is. On delivering such a vision, I have some idea of what I want it to look like. One of the challenges we face is adapting the physical space of town centres to fit this new market. We cannot rely on retail to fill every space in the way we once could; we need the flexibility to change things. Along with a local vision and local leadership, such flexibility needs some support.
One particular avenue that might be helpful—I hope this is a useful suggestion—is to consider the ways in which we could support local councils in relation to the compulsory purchase of buildings in town centres, where a positive plan has local approval. In Mansfield, a number of retail units on the edge of town are empty or dilapidated. I mentioned my office on Church Street, which is on the very edge of the town centre, and most of that area is made up of empty shops. The property values of these retail buildings have fallen, so many owners will not sell them or invest in them. They sit empty for years and years, but these sites are often ideal for development. They could be brought into use as new commercial or residential spaces, providing the small and more affordable properties that we need for local residents anyway. This would also move people into the town centre and boost footfall for other shops.
If the council was able to purchase such buildings and change their use, it would regenerate the edges of the town and help to fill units in the town centre. It would also bring properties that are often going to rack and ruin back into use, making the whole place more attractive and vibrant, and making it more of a place where people might be likely to come to and spend time. More and more, town centres should be a destination that we want to visit, as well as places for shopping.
For the many reasons I have laid out, I think the Government are working hard to support business generally and the retail sector, and it is important to note in all our comments that the retail sector is growing. The Conservative party is and always will be the champion for business, which drives our economy and creates jobs for my constituents. I hope Ministers will continue to be innovative and look across the board, including at my suggestion about compulsory purchase, at the ways in which we can continue to support local authorities and our small businesses in order to encourage the regeneration of our town centres.
(6 years, 7 months ago)
Commons ChamberThe hon. Lady makes the important point that to have the full protection of staying in Euratom would be the best thing to do, not just on nuclear safeguarding but on a range of other civil nuclear activities, until we are absolutely certain that we have ticked every box and ensured that we have alternatives that are as good as what we have under Euratom. That, very largely, is what Lords amendment 3 seeks to do. It seeks to ensure that there is recourse to the full covering arrangements of Euratom if those boxes have not been ticked.
After waiting until the very last moment to tell us that Lords amendment 3 is not needed and will be opposed, the Government have finally come up with an amendment in lieu of their own that suggests that perhaps a fall-back plan is needed after all. Its wording is, in many respects, very similar to Lords amendment 3. It places the signing of these treaties as the essential element in securing the transition to a full nuclear safeguarding role without Euratom, and specifies, as amendment 3 does, what they are. That in itself is a considerable victory for those who counselled for this over a period of time, and is a substantial turnaround from the Government’s previous position. But, at the last, the amendment falls short. It places the option to decide not on whether principal agreements have been signed—for that will be evident, or not, at the time of departure—but on what one might call an interim stage on a fall-back which provides for circumstances where, at the beginning of a period of 28 days prior to exit, agreements may not have been signed and completed, but will in the Secretary of State’s opinion have been so signed before that 28-day period is up. In other words, there is a very abbreviated, but nevertheless significant, period during which the Secretary of State will decide whether treaties are going to be signed. That will, in effect, be putting off the relevant request to the European Council for an extension of the time during which Euratom provisions hold, because the Secretary of State thinks it is, after all, going to be all right. That is a far shorter period than under the original general provisions that the Secretary of State said he would try to organise and get right in time for exit from the EU, but we are still back to that assumption that it will be “all right on the night” with no complete plan B in place. I accept that the amendment in lieu proposed by the Government comes a very long way, and that it has taken a considerable amount of U-turning, if we want to call it that, to put in place these arrangements, but in reality it is not quite far enough.
It was a pleasure to serve with the hon. Gentleman on the Bill Committee. Does he agree that the Government’s new approach offering more flexibility and the ability to take a common-sense approach based on the circumstances at the time is a better approach than an inflexible decision taken now which might not fit the circumstances next year?
(6 years, 7 months ago)
Commons ChamberThat was an ingenious piece of shoehorning, I must say. Part of our commitment is to make sure that we have a free trade agreement with the rest of the European Union that allows us to continue to serve markets right across Europe and the world. If the hon. Gentleman looks at the success of employment, including in his constituency in recent months, he will see that companies are employing people at rates not seen for many years.
The British Business Bank supports over £4 billion of finance to over 65,000 small businesses. The start-up loans programme has further delivered more than 54,000 loans, totalling over £400 million. We are tackling late payments through the Small Business Commissioner, and 38 growth hubs across England provide access to information and advice. Through the industrial strategy we plan to unlock over £20 billion of investment in high-potential businesses, including through establishing a £2.5 billion investment fund.
I thank the Minister for his response. As in many parts of the country, Mansfield has struggled to support shops and other town centre businesses. Will he explain what action the Government are taking to support such businesses and to regenerate what were formerly bustling town centres?
(6 years, 8 months ago)
Commons ChamberThe simple fact is that universities and students need these regulations to be implemented. I am not sure that the hon. Member for Ashton-under-Lyne (Angela Rayner) mentioned the contents of this statutory instrument once in her remarks. They are transitional. The regulations are entirely sensible and intended to fill the regulatory gap that has been left following the abolition of the Higher Education Funding Council for England earlier this month. They enable the Office for Students and UK Research and Innovation to take on the statutory functions of the Higher Education Funding Council for England and of the Director of Fair Access to Higher Education between now and July next year, after which the new regulatory system will be functioning.
Given that the hon. Lady spent her opening speech talking about the details of the OfS, it is fairly obvious that Labour Members’ opposition to these proposals has nothing to do with this statutory instrument at all. They have been vocal about their reservations on the OfS, and that is fine, but voting down this measure will not change that. It will simply wreck the regulation of universities for the next 15 months, and it will be the students who suffer as a result. This is about the transition. It is a dry SI about the process; it is not about what we are transitioning to, a decision which has already been taken. Labour’s opposition to this SI is therefore totally misjudged. It is almost as though Labour Members saw the words “higher education” in the title of a piece of legislation and thought, “We can bash the Tories on this subject.”
If the regulations are annulled, students will ultimately lose out. They would no longer have vital protections to address concerns about governance, quality or financial sustainability in their education. They could face increased fees, because it is only these regulations that ensure that a cap on student fees remains in place.
My understanding is that the Office for Students is supposed to protect students’ interests. One of the things that students are most worried about is that, whereas the Bank of England charges bankers 0.5% on loans, the Student Loans Company will charge them over 6% next year. Does the OfS have the power to cut that interest rate in the interests of students?
I thank the hon. Lady for her intervention, but she totally misunderstands this legislation, which is not about the Office for Students or its powers. The Government have launched a review of higher education funding to find out whether what she suggests is something that we can or should do. That will be important going forward, but it is not what this SI is about.
The Opposition have talked repeatedly about standing up for students, continually claiming to be the voice of students and discussing their plans to abolish tuition fees, and yet here they are risking the cap on fees by opposing the regulations. Let us not forget that the Opposition do not have the strongest record on keeping education promises. Before the election, the leader of the Opposition said that he would “deal with” existing student debt. Afterwards, however, he told Andrew Marr that he did not make that commitment, that he would not write the debt off, and that he was unaware of the size of the debt. He made promises without knowing the full facts and ultimately realised that he could not deliver them.
The Opposition talk about tuition fees preventing people from going to university, but the truth is that more disadvantaged 18-year-olds are going to university under this Government than ever before. Students from disadvantaged backgrounds were 50% more likely to attend university in 2017 than they were in 2009 under Labour, and our results on this kind of social mobility compare favourably with other countries, such as Scotland where higher education is free.
I was the first person in the family to go to university, and I did not go until I was 40 when I was fighting a general election campaign. Teaching quality was important for mature students like me, so does my hon. Friend agree that the Office for Students will help to improve that?
My hon. Friend is exactly right that the legislation will ensure that we have regulation from the Office for Students over the next 15 months instead of a gap between now and the middle of next year.
The irony is that Labour’s position on tuition fees is the least socialist idea that I have ever heard. Labour ignores the figures that I have just shared and says that universities do not take enough students from poorer backgrounds and that they are for the rich. However, despite those assumptions, it proposes raising taxes to fund free university education.
Does my hon. Friend agree that it was Labour Members who brought in tuition fees in the first place?
My hon. Friend makes a fair point. Labour proposes raising taxes for poorer people who do not get the benefit of higher education in order to fund free higher education for rich people. It is the opposite of socialism and the opposite of promoting social mobility. It is another totally illogical giveaway that looks nice on a leaflet but is totally illogical and undeliverable.
I am going to crack on and finish because I am nearly done.
Moving on from fees, without this agreement there is a risk that universities will not receive crucial grant funding. These transitional regulations enable the OfS to allocate £1.3 billion of teaching grants. Without this legislation, there would be no means to give out those grants and no provision to offer access agreements to support disadvantaged students in the next academic year.
I understand that the Opposition have reservations about how the OfS board has been set up and about appointments to it, but this is not the place to raise such issues. Those decisions have already been made, and their actions risk—[Interruption.]
Order. The hon. Gentleman must be heard. It is no use everybody shouting at him, because we cannot hear what he is saying.
I have one line left, so I am nearly there.
The Opposition’s actions risk creating a regulatory gap in the higher education sector and uncertainty for both students and universities. Ultimately, it is that uncertainty that we are trying to avoid, which is why I am supporting the Government today.