Small Business, Enterprise and Employment Bill
Debate between Bill Esterson and Matt Hancock(10 years ago)
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Matthew Hancock
No. As the hon. Gentleman knows, no amendments were moved yesterday on family brewers. We will reflect on the vote on the larger pubcos and the mandatory free-of-tie option as the Bill continues its passage in the other place.
Bill Esterson
The Minister says he is going to reflect on the vote, with the will of the House being the market rent only option. I know he has spent his time apologising to the Prime Minister for losing that vote, but perhaps I may press him on the point. This will be taken to the House of Lords. Is he going to try to overturn the will of the elected House or not?
Matthew Hancock
As I have said, the House has made its position clear and we will reflect on that vote ahead of consideration in the other place. That is a very clear exposition of the position.
On the question of how we can ensure that Britain can compete in the future, that we can support businesses and the jobs and prosperity that they bring, that this country is the best place in the world in which to start and grow a business, and that we make things as easy as possible for all those who have the spark of an idea and want to turn it into commercial reality, I say that there have been few Governments in history that have done more for small businesses than this one. For the first time in modern history, we are on track to reduce the burden of domestic regulation—something that was never achieved by the Labour party. With these measures in the Bill adding to a multitude of others that have already been taken, we are doing all we can to support the British people and to ensure that we have a long-term economic plan that can secure for you, Madam Deputy Speaker, and for families across the country, the prosperity that we all want to see.
Small Business, Enterprise and Employment Bill
Debate between Bill Esterson and Matt Hancock(10 years ago)
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The Minister for Business and Enterprise (Matthew Hancock)
We have had a good-natured and largely well-informed debate on these new clauses and amendments.
I shall deal first with late payments. We have heard passionate speeches from Members on both sides of the House on the importance of tackling late payment. I will start by addressing a comment made by the hon. Member for Sefton Central (Bill Esterson), who performed admirably on the Public Bill Committee and made many important interventions. He argued that the current situation in the country on late payment is not acceptable and is not working, and I think he is right. The question is what to do about it.
We consulted broadly on all the potential options surrounding late payments, including many of the options covered by the amendments, and we listened carefully to the responses to the consultations. There was a range of responses, including from those who would firmly regulate all private contracts and from those who did not want any change at all. It is important for us to take steps that will have a positive impact, and to think about the unintended consequences. If we introduce into English law a requirement for a contract to take a specific form, we will remove a freedom of contract that has served the country extremely well for a long time.
We have today heard passionate arguments about the importance of dealing with late payment, as we did on Second Reading and in Committee. We have heard them from my hon. Friend the Member for Ipswich (Ben Gummer) and from Opposition Members. I bow to none in my passion for sorting out the problem of late payment, because the family business in which I grew up nearly went under thanks to it, but let me point to the big picture. The hon. Member for Ochil and South Perthshire (Gordon Banks) argued that there was a moral case, and I agree with that. He also observed that the problem arose when there was a cascade of companies paying late—when, because some paid late, others had to do so, and then others had to as well. I have been at the receiving end of that, as I am sure he has. He is nodding now. The best way to tackle the problem of companies going bust and others paying late is first to establish a stable economy, and then to establish a culture of payment that is stronger and better.
Matthew Hancock
I will in a moment. Many Members have ignored the fact that the Bill already contains measures to improve transparency and increase prompt payment in the public sector. My Department pays within five days of receipt of 95% of undisputed invoices, and within 30 days of receipt of 99%. That excellent performance—which is what I would call it—must be rolled out much more widely in the public sector if the culture is to be changed, but we also need transparency.
Bill Esterson
I am glad that the Minister did not give way to me earlier, because he has made my point quite well. By improving its payment terms, the public sector is helping the economy. Rather than concentrating on putting the economy right in order to boost prompt payment, we should bear in mind that boosting prompt payment will help us to grow the economy, and if that is right in the public sector, it will be right in the private sector. We merely want to start the ball rolling. We in the Chamber do not have the perfect answers; it is for others to go away and design a system that works. If we assumed that all amendments must be perfect, we would never agree on anything here.
Technical and Vocational Education
Debate between Bill Esterson and Matt Hancock(10 years, 4 months ago)
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Bill Esterson
I am happy to withdraw my earlier remarks about the Secretary of State’s absence.
On quality and ensuring that apprenticeships do the job needed for the economy and for the individuals involved, does the Minister accept that we need the same approach as in Germany, where vocational and academic qualifications are of the same quality and have the same status? Does he agree that we need to offer apprenticeships in businesses of all sizes? That happens in Germany, but is it really happening in this country? I do not think it is.
Matthew Hancock
It was gracious of the hon. Gentleman to withdraw his remarks about the Secretary of State.
In the hon. Gentleman’s constituency, the number of apprenticeships has gone up by 118% since the election, so I know that he is a supporter of apprenticeships. Of course we must ensure that we drive up their quality. More than half of apprenticeships are in small and medium-sized enterprises, so they can be got in smaller businesses. An important part of the reform is to ensure that they work for small businesses as well as large ones, and that is happening at the moment.
The crucial point is that apprenticeships are based not only on the needs of employers, but on the basics, especially the key vocational skills of maths and English. We are strengthening maths and English at primary and secondary school, but it is shocking that, despite recent improvements, 40% of pupils do not get GCSEs at A* to C in English and maths by the age of 16. It is a national scandal that nine out of 10 of those who do not reach that basic standard by 16 do not achieve it by 19 either.
Under Labour, Britain was the only major country where young people were less numerate and literate than their grandparents, and we became one of the few major countries that did not insist on continued studies of maths and literacy for those who did not get such qualifications the first time around. We are ending that scandal. From September, all students will for the first time have to continue studying maths and English if they do not get a good GCSE, which will improve the life chances of millions.
Oral Answers to Questions
Debate between Bill Esterson and Matt Hancock(10 years, 5 months ago)
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Matthew Hancock
Making sure that those who are visually impaired can fulfil their potential in the workplace is a vital part of the training we support. My right hon. Friend the Minister of State is the president of the organisation that the hon. Lady mentions. Apprenticeships are one option, and there are specific mechanisms to ensure that those who are visually impaired can complete an apprenticeship, but more broadly we need to make sure that the whole skills system works as much for those with disabilities as for those who are fully able.
Bill Esterson (Sefton Central) (Lab)
8. What assessment he has made of the effect of the Government’s policies on small businesses and the self-employed.
The Minister for Skills and Enterprise (Matthew Hancock)
The Government are making it easier to start, finance and grow small businesses. There are now 400,000 more small businesses than in 2010. The total number stands at a record 4.9 million, with a record 4.5 million people in self-employment. Yesterday, we introduced in the House the first ever small business Bill.
Bill Esterson
The Federation of Small Businesses index has highlighted that small businesses are still struggling to get the finance they need to expand—something confirmed by small businesses in my constituency to a very large degree. The FSB also calls for greater competition and choice in business banking. Does the Minister accept that the Government’s failed schemes, including Project Merlin and credit easing, have had no impact whatsoever?
Matthew Hancock
The hon. Gentleman was doing quite well until that last exaggeration. I certainly agree that strengthening access to finance is a vital part of securing our recovery, and of course measures in the Bill announced yesterday will help to do that, but according to the FSB, small businesses’ confidence is at a high since Labour’s great recession. Small businesses in the hon. Gentleman’s constituency are playing their part, because unemployment on the claimant count has fallen by 30% in the past year.
Oral Answers to Questions
Debate between Bill Esterson and Matt Hancock(10 years, 10 months ago)
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Bill Esterson (Sefton Central) (Lab)
But why have Ministers failed to match their rhetoric with action? Something like what my hon. Friend the Member for Denton and Reddish (Andrew Gwynne) suggests in his Apprenticeships and Skills (Public Procurement Contracts) Bill would create thousands of new quality apprenticeship opportunities by requiring all major suppliers on large public projects to offer apprenticeships.
Matthew Hancock
As I said, we do that on some of the largest procurements. If we are talking about action, the fact that a record number of people are in apprenticeships is action that we should support, and the fact that 1.5 million people across the country have started apprenticeships since 2010 is also action we should all be proud of.
Oral Answers to Questions
Debate between Bill Esterson and Matt Hancock(10 years, 11 months ago)
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Bill Esterson (Sefton Central) (Lab)
I shall enjoy supporting small business Saturday, too. Many young people take their first job in retail and gain vital experience and training that stands them in good stead for the rest of their working lives. Given the problems that retail faces, what steps will the Government take to support retail, especially to deal with the scourge of youth unemployment?
Matthew Hancock
We support the national skills academy for retail, and I recently opened its new premises. It is a great supporter, ensuring that people in retail have the right skills to do the job and to progress.
Start-up Loans
Debate between Bill Esterson and Matt Hancock(11 years ago)
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Matthew Hancock
The Business is Great website is an important part of that. I commend my hon. Friend’s work in supporting small businesses, in pushing for improvements for them and in getting out personally to demonstrate what is available. There is a broad communications campaign about the scheme—yes, online, but also offline—and I take every opportunity to tell people what is available.
Bill Esterson (Sefton Central) (Lab)
Will the Minister confirm that the advice that goes with the funding, which is crucial, is specific to individual businesses and the markets in which they operate? Will he also confirm that funding and advice for existing businesses is equally important, because without that second element, start-up loans will ultimately lose much of their effectiveness?
Matthew Hancock
Yes. Those are extremely important points. The growth accelerator programme offers support for small and growing businesses and is itself expanding rapidly. The start-up loan programme is not only about access to finance for those starting businesses, but about mentoring. The number of businesses sponsored by each mentor is small, so that mentors have the opportunity to spend time and put effort into ensuring that such ideas get the best possible chance.
Oral Answers to Questions
Debate between Bill Esterson and Matt Hancock(11 years ago)
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Matthew Hancock
My hon. Friend’s local FE college is not only very good; it is also the FE college I went to. I am glad to say that the 16-to-19 bursary fund allows colleges to target support at those who need it most. The most vulnerable receive a bursary of up to £1,200, which is far more than they could have received from EMA.
Bill Esterson (Sefton Central) (Lab)
The Merseyside Colleges Association told Merseyside MPs just this week that the bursary fund is nowhere near enough to deal with the need that it finds for food, travel, or books. Will the Minister seriously reconsider? It is not just the very poorest students who are missing out, but those just above them; colleges do not have the money to cover them.
Matthew Hancock
It was found that the education maintenance allowance was paid to 10 times more people than needed it to access further education. It is interesting that the hon. Gentleman mentions food, because the Government are introducing free school meals for those who need them in FE colleges—something the Opposition never did.
Oral Answers to Questions
Debate between Bill Esterson and Matt Hancock(11 years, 2 months ago)
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The Parliamentary Under-Secretary of State for Skills (Matthew Hancock)
As my hon. Friend knows, I am a passionate supporter of small businesses and of apprentices in them. The majority of apprentices are in small businesses and the Government do what we can to encourage that. In some places, local authorities top up the support we give. I am thrilled when they do so, but if we can do more to ensure that provision is consistent across LEP areas, we should do it.
Bill Esterson (Sefton Central) (Lab)
T8. Both the Minister for Schools and the Secretary of State completely failed to address the question they were asked about free schools policy. Fifty-one per cent. of all free schools have been built in areas where there are surplus places while there is a crisis in primary school places elsewhere. Is not the point that free schools policy has failed to deal with the shortage of places where they are most needed?
Oral Answers to Questions
Debate between Bill Esterson and Matt Hancock(12 years ago)
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Matthew Hancock
I certainly join my hon. Friend in warmly welcoming what has happened at Central Sussex further education college, which is now offering higher education. It is crucial to have more engagement between our employers, our colleges and our young learners in order to ensure that when people leave college, they are ready for work, can participate in the work force and make sure that Britain has the prosperity it needs in the years ahead.
Bill Esterson (Sefton Central) (Lab)
The EBacc means students are less likely to study technical subjects purely on the basis that schools are less likely to provide them because they will be measured on the narrow academic approach of this new qualification. Surely the way forward should be for all schools to offer vocational qualifications, knowing full well that people do better in their academic subjects when they do vocational routes, which should not be provided only in specialised technical colleges.
Matthew Hancock
If the hon. Gentleman has any evidence to back up his assertion, I will happily look at it, but having a core of English, maths and the sciences within the EBacc before pupils reach 16 is vital to ensuring that people can go on to a vocational or an academic pathway in the future. It is absolutely central to this Government’s future vision of where our prosperity comes from that our occupational and vocational skills are at the heart of it.