Intellectual Property Office: Performance Targets

Chris Skidmore Excerpts

Thursday 4th April 2019 Written Statements

[The Minister for Universities, Science, Research and Innovation (Chris Skidmore)]

Our industrial strategy sets out the Government’s vision for making the UK the most innovative country in the world. The UK starts from a position of strength and is already ranked in the top four of the global innovation index and top 10 by the World Bank as the best place to start and grow a business. But the global landscape is changing and we must continue to invest in research and development. The industrial strategy has set an ambition to raise total research and development to 2.4 per cent of GDP by 2027, helping businesses access the right funds and equip them to face the challenges and opportunities presented by new technologies and new ways of doing business.

Intellectual property (IP) plays a crucial role in innovation and touches everything that makes modern life more enjoyable, easier, safer and prosperous. It provides inventors, creators and entrepreneurs with the confidence to invest knowing that they will reap the benefits of their investments. UK investment in IP rights reached almost £64 billion in 2016 and studies have shown that industries that rely on IP have accounted for over a quarter of UK employment and almost half of GDP. Our IP system matters. It creates jobs and economic growth and is helping to propel Britain to the forefront of innovation.

The Intellectual Property Office (IPO) corporate plan 2019-20 explains how through its stewardship of the IP system, it will help the UK to be the most innovative and creative country in the world. It will do this through delivering excellent IP services, creating a world leading IP environment and attracting and retaining the best people by making the IPO a brilliant place to work. This plan outlines the start of the IPO’s transformational journey, which will provide truly modern IP services to its customers.

The UK already has one of the best IP regimes in the world, consistently ranked as one of the top regimes in indices such as those from the Taylor-Wessing Global IP Index and US Chamber of Commerce International IP Index, and during 2019-20, the IPO will continue to contribute to building a business environment that makes the UK the best place in the world to start and run a business.

As an executive agency and trading fund of the Department for Business, Energy and Industrial Strategy, the IPO has set targets which are agreed by Ministers and laid before Parliament. I am glad that today I can inform the House that for 2019-20 the IPO’s targets are:

At least 85% of our customers to rate us 8/10 for overall satisfaction.

By the end of March 2020 we want 90% of renewals to be conducted via the new enterprise-wide digital renewals service.

75% of the businesses we reach confirm that they are able to make informed decisions about their IP.

Deliver our services efficiently through continuously improving our systems, processes and ways of working to make things better for our customers and our people, reduce costs and improve the value for money we provide. Our target is to achieve efficiencies worth at least 3.5% of our core operating costs.

[HCWS1485]

Education Technology Strategy

Chris Skidmore Excerpts

Wednesday 3rd April 2019 Written Statements

[The Minister for Universities, Science, Research and Innovation (Chris Skidmore)]

Education technology (EdTech) refers to the practice of using technology to support teaching and the effective day-to-day running of education institutions. Technology has become embedded throughout society and yet the use of technology in education is mixed. There is potential for technology to play a stronger role in helping to address some of the key challenges in education.

The Department for Education has developed an education technology strategy “Realising the potential of technology in Education: A strategy for education providers and the technology sector”. The strategy aims to support and enable the education sector in England to help develop and embed technology in a way that cuts workload, fosters efficiencies, removes barriers to education and ultimately drives improvements in education outcomes. It includes support to promote a vibrant EdTech business sector in the UK to provide proven, high-quality products that meet the needs of educators and fosters a pipeline of fresh ideas.

At the core of the strategy is an understanding that the use of technology does not provide a panacea, but when used well, it can be highly effective in helping to deliver improvements and tackle challenges throughout education. The strategy marks the development of a partnership between the education sector, the technology industry and the Government to drive further progress in the use of education technology for schools, further education, higher education and other providers and announces a new leadership group to take this forward.

The strategy makes clear how we intend to build upon existing good practice in the sector through launching a network of EdTech demonstrator schools and colleges across the country. The demonstrator schools and colleges will help showcase the possibilities for technology and will facilitate peer-to-peer learning about the good use of technology to help address challenges facing teachers, leaders and students, be this funding, teacher workloads, meeting the needs of pupils with special needs or more generally to help support teachers to deliver excellent teaching.

It also makes clear that Government will help address the barriers facing education providers and the technology industry, through:

Helping schools to secure the broadband and networking infrastructure they need through accelerating the roll-out of full fibre internet connectivity to schools and providing guidance.

Supporting the creation of opportunities for teachers and school leaders to improve their skills and knowledge about good use of technology through creating opportunities for peer-to-peer learning and through supporting partner organisations to provide free online CPD courses and free nationwide roadshows showcasing products, services and good practice.

Improving support for procurement of technology, including exploring how to facilitate a better online marketplace for EdTech including through pre-negotiated buying deals, and supporting a digital service allowing schools to try products before they buy.

Helping education providers and the technology industry understand the privacy, security and data guidance and standards they should adhere to.

Helping the education technology industry to understand the full range of support available to them to help grow and scale their business through the Government’s industrial strategy.

Improving the digital services that the Department for Education itself provides.

The strategy also announces 10 challenges to educationists and the technology industry. These cover areas where we think there is real potential for technology to make a difference and where we are seeking to galvanise activity, promote innovation and to prove whether or not technology has the potential to deliver positive outcomes. This includes the use of technology in assessment, administration, learning throughout life, teaching practice and continuing professional development. We will deliver the challenges through research, competitions to promote innovation by industry and the development of test bed schools and colleges.

This strategy marks the start of creating a technology revolution in education in England. We know that delivering this vision will take time, but we are committed to working in partnership with education and industry to deliver this vision.

I will deposit a copy of the strategy in the Libraries of both Houses.

[HCWS1478]

Draft Electricity Capacity (No. 1) Regulations 2019

Chris Skidmore Excerpts

Tuesday 2nd April 2019 General Committees

[The Minister for Universities, Science, Research and Innovation (Chris Skidmore)]

I beg to move,

That the Committee has considered the draft Electricity Capacity (No. 1) Regulations 2019.

It is a pleasure to serve under your chairmanship, Mr Robertson. May I pass on the apologies of the Minister of State for Energy and Clean Growth? She would dearly have loved to be here to present the draft regulations, which were laid before the House on 28 February. Unfortunately, however, she is detained in Cabinet, so I am standing in for her as a fellow Minister in the Department for Business, Energy and Industrial Strategy.

The capacity market is a key element of the Government’s strategy for maintaining the security of electricity supplies in Great Britain. The security of our current electricity supply is robust; the electricity margin for winter 2018-19 is forecast to be more than 11%, the highest figure for five years, which shows that the capacity market works. The draft regulations will help us to maintain a strong security-of-supply position. They contain the modifications needed for the operation of the capacity market, pending fresh state aid approval by the European Commission, and make arrangements for a positive or negative state aid decision. These are not wholesale changes, but minor modifications to preserve the operation of the scheme to the extent possible while state aid approval is outstanding.

Before I go into detail, it may be helpful if I provide some context and background information. The capacity market ensures that there will be sufficient electricity supply in Great Britain during periods of peak electricity demand. It secures the required capacity by awarding capacity agreements in competitive, technology-neutral auctions held four years and one year ahead of delivery. The capacity providers that win agreements commit to providing capacity during periods of system stress in exchange for receiving capacity payments, the revenue from which incentivises the investment necessary to maintain and refurbish existing capacity and finance new capacity; it also ensures that those who are able to shift demand away from periods of greater scarcity are encouraged to do so.

On 15 November 2018, the General Court of the Court of Justice of the European Union annulled the European Commission’s state aid approval for Great Britain’s capacity market and introduced a standstill period until the scheme can be reapproved. Importantly, its judgment was based on the procedure that the Commission followed when approving the capacity market, not on the capacity market itself. The judgment prevents the UK Government from making capacity payments unless and until the scheme receives state aid approval, but it does not change the Government’s commitment to delivering secure electricity supplies at the lowest cost to consumers or our belief that capacity market auctions remain the most appropriate way of doing so.

The Commission is investigating the scheme. On 21 February, it confirmed that it was moving on to the next phase—an important step as we work to reinstate state aid approval in the capacity market as soon as possible. We are working with the Commission to ensure that it has everything necessary to reapprove the scheme as quickly as possible, and we are confident that it will be approved and that payments to agreement holders who have met their obligations during the standstill period will be allowed.

My Department published a consultation proposing modifications to allow the capacity market to operate as far as possible during the standstill period following the General Court’s decision. We received 61 responses from a wide range of stakeholders. There was significant support for the majority of the proposals, with constructive feedback that led to several changes. The House of Lords Secondary Legislation Scrutiny Committee also highlighted uncertainties associated with the state aid process. We are confident that the draft regulations will help to address those uncertainties, including the unlikely event of a negative state aid decision.

Let me expand on the provisions in the draft regulations, beginning with deferred payments. To maintain industry confidence, the regulations include modifications to ensure that capacity payments that are currently being prevented by the Court’s judgment can be paid to capacity providers after state aid approval is obtained. Those payments will remain linked to capacity providers’ performance of the obligations in their capacity agreements.

Secondly, in recognition of the disruption caused to capacity providers, the draft regulations will provide additional flexibility during the standstill period. Capacity providers will have to pay financial penalties incurred during the standstill period only on the scheme’s state aid approval. In most cases, the same will apply to the requirement to maintain credit cover. The instrument extends from six to 12 months the additional time existing agreement holders can request for taking steps to avoid termination. In exceptional circumstances, where the suspension of capacity payments means imposing a termination fee that would cause a capacity provider undue financial hardship, the Secretary of State may direct the delivery body to terminate the agreement without such a fee.

Moving on from terminations and penalties, the instrument sets out the conditions for rearranging the T-1 auction that was originally planned for earlier this year, securing the capacity required for winter 2019-20. The auction will award conditional capacity agreements, which will not entitle capacity providers to payments or require them to pay penalties or termination fees until they convert to full capacity agreements upon state aid approval, thus allowing the auction to be run before there is that approval. The instrument also allows the settlement body to hold payments made by suppliers to fund the scheme, where suppliers choose to pay during the standstill period. It also enables the collection of all outstanding supplier charges for the standstill period upon state aid approval, providing certainty that upon that approval capacity payments will be made promptly.

Finally, in the unlikely event of a negative state aid decision, or no decision by October 2020, the instrument will terminate capacity agreements and any entitlement to receive capacity payments, and will require similar payments held by the settlement body to be returned. Although we are confident that a state aid decision will be made by October 2020, we have included that long stop to ensure that supplier payments are not held indefinitely without the prospect of payments being made to capacity providers for performance against their obligations. We have also laid complementary amendments to the capacity market rules, which govern the technical and administrative procedures relating to capacity market operation.

In conclusion, the draft regulations are necessary to provide legal certainty and confidence to the industry about how the capacity market will operate until state aid approval is received, and I commend them to the House.

--- Later in debate ---

[Chris Skidmore]

I thank the hon. Members for Southampton, Test and for Kilmarnock and Loudoun for their considered contributions today. It is evident that they have spent a lot of time thinking about the policy perspectives when it comes to the capacity market.

The Government continue to believe that the capacity market is the right mechanism for delivering security of supply at the lowest cost to consumers. My Department is working closely with the European Commission to ensure that state aid approval in the capacity market can be reinstated swiftly. Meanwhile, the judgment of the General Court prevents the UK Government from making capacity payments unless and until state aid approval is obtained.

However, we do not consider that the judgment prevents other aspects of the capacity market from continuing to operate during that standstill period. The delivery body and the assessment body continue to operate aspects of the capacity market during the standstill period, facilitating ongoing compliance with the scheme and helping to limit that uncertainty following that General Court judgment, to which the hon. Member for Southampton, Test referred. It also ensures capacity in a way that promotes security of electricity supply and demonstrates that a provider should be entitled to back payments. It enables the scheme to restart full operations as quickly as possible after state aid approval.

The T-1 auction, referred to by the hon. Member for Southampton, Test, will ensure that successful bidders in replacement T-1 auctions will be eligible to receive capacity payments covering the entire delivery year if state aid approval is obtained before October 2020. We believe that this enables bidders to have confidence in the revenue they can expect to receive through the auction if it is approved by the European Commission, providing better value for bill payers and reducing the risk premium that might otherwise inflate auction bids.

The Government do not consider that holding this T-1 auction, or awarding additional capacity agreements in that auction, amounts to state aid. Conditional capacity agreements convert into capacity agreements only if there is state aid approval to make payments, meaning that any aid under the agreement awarded is entirely conditional on state aid.

I turn to the judgment of the General Court. We are clear that it was based on the procedure followed by the European Commission. The General Court gave examples of where the Commission should have had doubts and investigated them, but did not rule that the design was wrong. We are confident that the design of the capacity market is now compatible with the state aid requirement. We have carefully considered each of the issues raised through the Court judgment.

We cannot pre-empt the outcome of the Commission’s investigation, but we remain confident that the scheme will be approved by the Commission following investigation —not least because it has approved six other capacity markets since 2014.

The Commission has also appealed the judgment of the General Court to the European Court of Justice. The Commission might require policy changes to the design of the capacity market scheme when granting state aid approval, in which case the Government would seek to respond swiftly to consider and bring forward the required changes. My Department has been in regular discussion with the Commission since the judgment to better understand the process they are following to ensure that we can support the investigation in the most effective and timely way possible. It is for the Commission to establish its own timetable, but we expect it to make the final decision later in the year.

I turn to the general points made on the necessity of the capacity market. The Government continue to believe that the capacity market is the right mechanism for delivering security of supply at the lowest cost to consumers. This view was supported by the majority of stakeholders that responded to our call for evidence in September 2018 as part of the proposed five-year review.

The capacity markets have a direct and indirect impact on new-build capacity. Around 4GW of new resources were cleared in the most recent 2018 T-4 auction, leading to the point made by the hon. Member for Kilmarnock and Loudoun: when it comes to the transfer away from fossil fuels towards renewable and nuclear fuels, the capacity market provides a cost-effective mechanism for bringing forward new capacity as and when needed. Recent auctions have supported a wide range of new-build resources, and the capacities of the market have had an impact on new builds.

[Dr Whitehead]

On the particular point of the capacity market providing new build, will the Minister agree that the only combined cycle gas plant supported by the capacity market is one 400MW plant during the entire period of the auctions? The capacity that has been procured more recently has either been open cycle gas plants, which are more polluting than combined cycle gas plants, or diesel set generators, which are more polluting than coal. Does the Minister consider that that is a good method of procuring capacity for the future through the capacity market arrangements?

[Chris Skidmore]

I would also point to the fact that we have seen 150 MW of battery storage through the recent T-4 auction; 1.1GW of DSR and 2GW of new interconnectors. There is obviously a variation. When it comes to the capacity market, this technology is based on delivering the most cost-effective mechanism, but we have demonstrated the need to introduce new capacity as and when needed.

When it comes to the Government’s record on switching away from coal, I should say that we have invested £92 billion in clean energy and quadrupled the renewable electricity capacity since 2010: the share of electricity from low-carbon sources is now 56%. In quarter 3 of 2018, 33% was from renewables, an increase from 6.9% in 2010.

If the Minister of State for Energy and Clean Growth were here, I am sure she would expound on the recent offshore wind sector deal, which was published two weeks ago. We now have the ability in offshore wind to exceed 30GW of installed operational capacity—more than we expected. We have already met the 2020 renewable targets. That is the same for solar capacity: in 2013, we estimated it would reach between 10GW and 12GW by 2020. The latest figures indicate it has reached 30GW, enough to power more than 3 million homes.

Important progress has been made. In terms of the five-year review of the capacity market that the hon. Gentleman mentioned, in line with the requirements set out in the Energy Act, we intend to publish a report that summarises our five-year review of electricity market reform this summer. One chapter of that will cover the five-year review of the capacity market.

On the hon. Gentleman’s specific point about meeting the Minister for Energy and Clean Growth, I should say that she will be delighted to discuss the opportunities for reform of the capacity market and to look at how we can deliver the best capacity market in the future.

When we look at the issue of agreements, the hon. Gentleman is right that the majority of capacity types can only access one-year agreements. An exception is obviously made for new and refurbished plants because investors require more certainty when investing in large capital projects; those agreements are for up to four years. However, we believe that longer-term agreements, where not needed, risk needlessly locking consumers into paying a long-term price, while there are challenges to encouraging business to engage in demand-side response. The same capital costs do not apply there. No clear evidence suggests that longer-term agreements are necessary to ensure demand-side response can compete effectively.

[Jeremy Lefroy (Stafford) (Con)]

Opposition Members have referred to the long-term problem with capacity, particularly with the nuclear baseload coming off-stream in the late 2020s and coal stopping between 2023 and 2025. At the same time, the Government are quite rightly encouraging increased uptake of electric vehicles—I declare an interest in that I drive one myself. This will place great demands on the grid and generation capacity. What plans do the Government have to make sure that the increased demand will be met by increased supply and to replace the energy that is coming offline?

[Chris Skidmore]

The question here is one of short-term capacity. We mentioned earlier that the electricity margin is 11%, which the highest it has been for the past five years. However, we cannot be complacent about ensuring that we have that insurance mechanism in place. That is why the capacity market is so important.

I point to the importance of investing in future technologies, while, side-by-side, we look at existing technologies and ensure that the capacity market adopts those providers. We have the Faraday battery challenge, which is quite close to where the hon. Gentleman is in the Midlands—that is £280 million worth of investment. When it comes to the supply of electricity, making sure that we have efficiency within a system, particularly with electric vehicles, is a key part of our grand challenge for Motability, particularly in cities. Work is being done to ensure that we can deliver on the power supply for that upscaling in electric vehicle manufacture and uptake, and I am struck by that work.

I am equally passionate about future technologies that we will need to invest in. We talked about nuclear fission, but we need to continue to work towards nuclear fusion with our European partners. The European Commission recently allowed a £100 million extension of the Joint European Torus contract at Culham. Going forwards, we are keen to associate with ITER, the international thermonuclear experimental reactor in France.

The point that the hon. Gentleman raises is right. We need to ensure that we have a portfolio of energy supplies as we reduce our dependence, as we have done successfully on fossil fuels and gas, but we can and will do more. It is important to recognise that this country has the most successful record when it comes to the introduction of renewables as a percentage of the overall grid supply.

We appreciate that the Court’s judgment has created the uncertainty and the potential difficulties that the hon. Gentleman mentioned. The Commission is investigating the scheme and has confirmed that it is moving on to the next phase. That is an important step as we work to reinstate state aid approval for the capacity market as soon as possible. The regulations provide legal certainty and confidence to industry and the electricity system about how the capacity market will operate during that standstill period pending state aid approval and about what we expect after that period. We continue to believe that the capacity market is the right mechanism for delivering security of supply at the lowest cost. The regulations are essential to preserving the operation of the capacity market to the extent that is possible when state aid approval is outstanding. The regulations provide vital confidence to industry and safeguard a secure system.

We have had an important and detailed debate about some of the wider policy implications. I have set out an opportunity for the hon. Gentleman to have a meeting with the Minister for Energy and Clean Growth. The regulations prescribe for the immediate future of the capacity market. That is important, and I urge all Members to support them.

Question put and agreed to.

Resolved,

That the Committee has considered the draft Electricity Capacity (No. 1) Regulations 2019.

Joint European Torus: Fusion Contract

Chris Skidmore Excerpts

Friday 29th March 2019 Written Statements

[The Minister for Universities, Science, Research and Innovation (Chris Skidmore)]

Having made my first speech at Culham, I know how hard-working and dedicated UKAEA staff are, which is why I am pleased to announce that on 27 March 2019 the European Commission and the UK signed a new contract extension for the Joint European Torus (JET) facility in Culham, Oxfordshire. JET is the world’s biggest operational fusion reactor, undertaking research in technology aimed at providing clean, safe, inexhaustible energy. JET is operated by the UK Atomic Energy Authority and is funded primarily (87.5%) by the European Union; this contract extension will secure at least €100 million in additional inward investment from the EU over the next two years. Crucially, the contract extension will last until the end of 2020 regardless of wider EU exit negotiations, safeguarding this world-leading facility and over 500 high-skilled science and engineering jobs at Culham.

The UK Government previously (27 June 2017) agreed to guarantee the UK’s fair share of JET funding to the end of 2020 should this contract extension be agreed. This latest outcome is the natural culmination of that open and collaborative approach and underlines the strong and enduring partnership between the EU and the UK in science and research.

[HCWS1467]

Adrian Smith Review

Chris Skidmore Excerpts

Tuesday 26th March 2019 Written Statements

[The Minister for Universities, Science, Research and Innovation (Chris Skidmore)]

I am pleased to announce that I have commissioned Professor Sir Adrian Smith, Director and Chief Executive of the Alan Turing Institute, to provide independent advice on the design of UK funding schemes for international collaboration, innovation and curiosity-driven blue-skies research.

The UK is a world-leading research nation with a globally connected research base. Collaboration with European and wider international partners is key to our strength in science and research: more than half of the UK’s research output involves such collaboration. The UK is in the top four of global innovation nations and we draw in more internationally mobile research and development (R&D) than other large countries, with a total of 16% of UK R&D investment financed from abroad.

This Government are bringing forward the largest investment in R&D on record. As outlined in our modern industrial strategy, we are committed to reaching 2.4% of GDP invested in R&D by 2027, and 3% in the longer term. International partnerships and collaboration will play an important part in helping to achieve our ambitions, including in supporting the industrial strategy’s grand challenges to put the UK at the forefront of the industries of the future. Professor Sir Adrian Smith’s advice will help set the direction for the implementation of the Government’s ambition to ensure the UK continues to be a global leader in science, research and innovation, and an attractive country for individuals to study and work. Furthermore, Sir Adrian’s advice will help inform the upcoming spending review.

The terms of reference, outlining the scope, timescale and reporting of this work are below.

Terms of reference for the Commission of Professor Sir Adrian Smith

General

The Secretary of State for Business, Energy and Industrial Strategy has commissioned Professor Sir Adrian Smith to provide independent advice on the design of potential future UK funding schemes for international, innovation and curiosity-driven blue-skies research, in the context of the UK’s future ambitions for international collaboration on research and innovation. This document outlines the terms of reference for this work.

The global landscape for science and innovation is changing, and access to knowledge, markets, skills and partners now takes place on a global basis. Global research and development (R&D) capacity is expanding and non-Organisation for Economic Co-operation and Development (OECD) countries account for a growing share of global R&D, both in terms of researchers and investment. Better understanding is needed on whether the UK’s current funding mechanisms, resources and bilateral and multilateral partnerships will be fit for purpose when set against the projected trends in international research and innovation, and against new technology and industry roadmaps and the forecast social, economic and environmental trends.

The UK’s participation in Horizon 2020, the current European Union (EU) framework programme for research and innovation, has benefited the UK’s science, research and innovation landscape. It provides opportunities for UK entities to collaborate with EU and international counterparts and funding for multiple elements including innovation, international collaborations and partnerships, and curiosity-driven ‘excellence’ based research. Horizon Europe is the successor to Horizon 2020 and will run from 2021 to 2027. The UK remains committed to ongoing collaboration in research and innovation with partners across Europe. To this end the UK would like the option to associate to Horizon Europe and is continuing to actively shape the development of that programme. However, we are also exploring in parallel credible and ambitious alternatives to deliver positive outcomes for science, research and innovation in the event that the UK chooses not to associate.

Purpose

Professor Sir Adrian Smith has been invited to provide independent advice on how funding future international collaboration, from curiosity-driven ‘discovery’ funding through to innovation, can best be designed to positively impact science, research and innovation in the UK, and to support the Government’s strategic objectives, including the industrial strategy and its commitment to 2.4% of GDP invested in R&D by 2027.

In the immediate term, Professor Sir Adrian will be asked to advise on the design and delivery of elements of the potential alternatives to Horizon Europe association. This will include the Discovery Fund, which aims to provide a UK alternative to the curiosity-driven and excellence-focused elements of Horizon Europe.

On the Discovery Fund Professor Sir Adrian Smith will be asked to consider:

The design of UK alternative funds i.e. the scale, scope and any international elements of proposed funds, and how they could complement the current UK funding landscape;

The delivery of UK alternative funds i.e. how strategic direction could be determined, how proposals could be reviewed.

On international collaboration, Professor Sir Adrian Smith will be asked to consider:

How funding mechanisms, resources, and international partnerships can remain fit for purpose for our global ambition to support the international research and innovation strategy, which will be published in the coming months.

How international collaboration can best support the Government’s industrial strategy and 2.4% target.

Professor Sir Adrian’s advice will help inform the upcoming spending review (as announced in the spring statement) and longer-term value-for-money considerations on international collaboration for research and innovation.

Professor Sir Adrian will have the independence to engage with relevant stakeholders and seek expert advice as he sees fit.

Timescale

It is anticipated interim findings will be presented to BEIS Ministers in the summer of 2019.

Reporting

Professor Sir Adrian Smith will report to me as Minister for Universities, Science, Research and Innovation. Professor Sir Adrian will provide an update on progress on a regular (monthly) basis, to BEIS officials. A summary of his interim findings will be published by BEIS.

[HCWS1449]

Evidence-based Early Years Intervention

Chris Skidmore Excerpts

Thursday 21st March 2019 Westminster Hall

[The Minister for Universities, Science, Research and Innovation (Chris Skidmore)]

It is a pleasure to serve under your chairmanship, Mr Davies. I congratulate the right hon. Member for North Norfolk (Norman Lamb) on securing this important debate on behalf of the Science and Technology Committee. I know this is an area that he cares passionately about, and I pay personal tribute to the work he did in a previous Parliament as Minister of State for Community and Social Care between 2012 and 2015.

I also thank other hon. Members who have participated in today’s debate. Their contributions have shown not only clarity of thought about these issues, but real passion about what is taking place in their local areas. It is a tribute to those Members’ local commitment that they have worked with their communities to address these issues. We have heard from the hon. Members for Bristol North West (Darren Jones), for Stockton South (Dr Williams), for Linlithgow and East Falkirk (Martyn Day) and for Batley and Spen (Tracy Brabin), and there have also been important interventions from the hon. Members for Stroud (Dr Drew) and for East Lothian (Martin Whitfield). I am grateful for the opportunity to set out the Government’s approach to addressing early childhood adversity and trauma, and the actions we are taking to improve children’s life chances through early intervention.

The Government are strongly committed to effective early intervention in childhood. That means not only effective prevention, identification and support for children and families in need, but building a strong evidence base to underpin those things. The hon. Member for Bristol North West asked whether I, as Science Minister, would commit to ensuring that we take forward an evidence-led approach. I passionately believe that the investment we make in research must not only go into healthcare research, but into the social sciences.

[Norman Lamb]

I appreciate the point that the Minister is making, but does he recognise that without collection and national analysis of data, we have no idea how public money is being spent across the country and whether it is being spent effectively?

[Chris Skidmore]

I appreciate the right hon. Gentleman’s point, and I agree with what he has said about data collection; I will return to that topic later on. I am also a new Minister in the Department for Education, covering the universities sector. I recently set up a higher education data advisory committee, because I value the importance of such evaluation at both local and national level— for example, when we look at university access and participation. We have also set up the Evidence and Impact Exchange in partnership with King’s College London and Nottingham Trent University, to examine the methodology behind encouraging more disadvantaged pupils to have access to, and opportunities at, university. That is at one end of the scale, but today we are talking about what we need to do at a far earlier stage of a child’s education.

When it comes to scientific research, and early years research in particular, we must ensure that we listen to the scientific community when it comes to neuroscience and cognitive behaviour; that we are careful about how we use that scientific research to make public arguments and develop public policy; and that we work with those scientists. I am sure that they will develop new innovations and scientific research, which may even challenge our understanding of these policies. It is important that we work together as a community, understanding that evidence base and drawing on the good work already conducted at national and local level.

I welcome the recent establishment of the early years ministerial group on family support, which is reviewing how to improve the support available to families in the first two years of a child’s life, identifying opportunities for co-ordination and improving cost-effectiveness. I look forward to the valuable contribution of that group, which will provide specific recommendations to the Secretary of State. I am unable to provide a timetable for that, as the hon. Member for Batley and Spen asked me to, but I will ensure that the group is aware of today’s debate. I am sure that its members will all wish to engage with the Science and Technology Committee regarding specific issues raised in its report, and on any future work that the Committee does. The Government value the work of that Committee and recognise its place in public discourse. As we proceed, we will make sure that we engage with some of the recommendations that the Committee has made.

[Mike Gapes in the Chair]

Turning to the role of Government in early intervention, the model for adverse childhood experiences gives us a helpful focus for action on early intervention. We must also ensure that there is an overarching model for care and support. Fundamental to that is the belief that local areas are best placed to understand the needs of their local communities, and to commission early intervention services that best meet those local needs as part of a whole systems model. We have heard about some excellent examples of local innovation, such as the one given by the hon. Member for Bristol North West, who talked about the work of Bristol City Council. The fact that the council had to hold its conferences twice clearly demonstrates the demand for those services. We also heard about the work in Greater Manchester. It is important that we allow that innovation and creativity to flourish as part of future work, but, importantly, we should not expect local areas to do that work alone. The matter is a serious and complex one, and our approach, which reaches across all Departments and Governments, reflects that.

Our approach is based on a number of principles, which are as follows. First, early rather than late intervention is key; secondly, the role of central Government is to support, facilitate and work with local government and other partners to tackle these issues together; thirdly, our solutions should be focused on outcomes and underpinned by evidence; and fourthly, successful strategies should be identified and shared widely within the sector. With that in mind, we have prioritised three key areas for central Government focus to build resilience to adversity and trauma. Those are: physical and mental health in pregnancy and childhood; protecting vulnerable children through effective children’s social care; and improving social mobility, supported in the early years by high-quality early education settings and learning in the home. That is underpinned at all levels by our work to improve services and partnerships locally, and to build the evidence base for what works.

I will address each of those areas in turn. First, when it comes to supporting physical and mental health in pregnancy and childhood, the Government recognise the serious impact that adversity in early childhood can have on children as they grow up; the hon. Member for Stockton South set out some striking examples. Support must begin as early as possible, and maternity services have a central role to play. The NHS long-term plan will make the NHS one of the best places in the world to give birth by offering mothers and babies better support. It will also expand the provision of quality mental health support for new and expectant mothers and their families. The evidence shows that this is a key opportunity to improve outcomes for mothers and children.

[Dr Williams]

I thank the Minister for highlighting the importance of maternal mental health, in particular. However, the National Childbirth Trust has identified that half of all women who experience mental health problems during the perinatal period say that they were never asked about their mental health, and that their mental health problems remain undiagnosed. Given what the data and evidence show, will the Minister commit to looking at that issue and making representations to the Department for Health and Social Care? Although the Department has acknowledged the problem, it has failed to adequately adhere to the National Institute for Health and Care Excellence guidance, which states that all new mums should have routine assessments in their general practices at six to eight weeks, to better identify perinatal mental health problems.

[Chris Skidmore]

I thank the hon. Gentleman for raising that issue, which I am happy to raise with the relevant Minister. I am meeting the Minister with responsibility for mental health shortly to discuss mental health issues surrounding students, and I will make sure the issues are placed on the agenda for my discussion with her.

[Tracy Brabin]

Although we welcome the recent announcement of 5,000 additional health visitors, can the Minister say whether there will be an opportunity to collect data on how many visits a child has? To increase the number of visits from the statutory five, we need the data to enable us to know whether the extra health visitors are having the impact that I know the Government want.

[Chris Skidmore]

I will come to the question of health visitors later in my speech, but I will be more than happy to pass on the hon. Lady’s point about the collection of data and look at what evaluations might be possible. I will certainly make sure that hon. Members’ contributions are reflected in my discussions with the Department.

Local authorities are receiving £16 billion between 2015 and 2021 to spend on public health functions, which includes funding to support the healthy child programme and the mandated five health visits, which the hon. Lady mentioned, for children between the ages of nought and five. We are seizing the opportunities presented by such moments with families. A key piece of partnership working between the Department and Public Health England will see the Institute of Health Visiting train up to 1,000 health visitors in 2019 to identify and support children with speech, language and community needs early. The health visitors will then cascade the training to provide even greater reach. It is important to make sure that an evaluation takes place to make sure it is as effective as possible.

On the recruitment of additional health visitors and the quantity of visits, health visiting services are commissioned by local health authorities, and health visitors are employed by the local health service providers. However, the Government will continue to work with partners, child development experts and professional organisations representing health visitors to ensure that the healthy child programme remains an effective and evidence-based framework providing good health, wellbeing and resilience for every child.

On the wider issues around early intervention and making sure it is adversity-targeted among the early years workforce more broadly, it is crucial that early years practitioners are well trained to protect young children from the impacts of adversity and trauma. As part of the early years foundation stage statutory framework, service providers are obliged to ensure that all staff have up-to-date knowledge of safeguarding issues and are equipped to identify and address signs of abuse and trauma. We want to equip the early years workforce to deliver outstanding services, to adopt evidence-based approaches, to learn from best practice and to deliver quality outcomes. The Government are supporting that with a professional development fund and similar programmes, such as the newly established Social Work England, which will ensure that social workers receive the highest quality initial education access and continuing professional development.

[Norman Lamb]

It is helpful to hear what is happening now. Does the Minister see value in defining a national strategy—the approach taken in Scotland and Wales—to try to drive the good things that he says he wants and make sure they happen everywhere, or does he resist the idea? It is important for us to understand whether there is an opportunity to work together with the Department to try to achieve something that is greater than the sum of its parts. Is he up for that and could he persuade his colleagues, or does he positively resist what we are arguing for?

[Chris Skidmore]

The right hon. Gentleman has stolen the latter part of my speech. When it comes to the broader point, I recognise that the Committee’s work, for which the Government are extremely grateful, reflects on the development of a national strategy. Currently, the Government do not consider the formal publication of a national strategy to be necessary. However, the Government will seek to review the approach through the spending review and the upcoming prevention Green Paper, which will build on the November 2018 Department of Health and Social Care report “Prevention is better than cure”, and its priorities. Also, we will look forward to the value that the early years family support ministerial group will add to the Government’s approach. Although I cannot commit in today’s debate to taking forward a national strategy, the Government are certainly working on a future Green Paper and the approach might change.

It is important to reflect on a balanced collection of the evidence that demonstrates what works, which will then inform any future approaches as part of the future prevention Green Paper. I realise that my response does not entirely answer the right hon. Gentleman’s question, but I want to reflect on the fact that the present does not necessarily rule out a change of direction in future.

Various Members mentioned children’s centres. The Government believe that children’s centres have an important role to play in early intervention, but it is right that local councils continue to decide how to use them as part of the wider system of local services. As part of our local government programme, local authorities are looking into how early years services can be improved. The right hon. Gentleman raised the question of Ofsted inspections. When inspections of children’s centres were suspended, there was at the time an agreement that they were not fit for purpose. However, children’s social care services and all registered early years prevention, including that delivered in children’s centres, remain subject to robust and regular Ofsted inspections.

When it comes to the consultation that has been mentioned and the delay in moving forward, the Department still needs to understand how local authorities effectively use centres to improve outcomes as part of their broader strategy before we go further. That is why we will be investing in What Works, which I will talk about later in my speech, working with the Education Endowment Foundation and delivering the £8.5 million local government programme. The programmes will inform the next steps in our strategy, including any future consultation. We need to look at the evidence from the programmes before deciding whether a consultation is indeed the correct way ahead.

[Tracy Brabin]

The Minister probably will not be able to answer this, but is there a timeframe for the consultation on What Works? Is it a two-year strategy? How long will local authorities have to wait to get something out of the Government for their children’s centres?

[Chris Skidmore]

I will talk later in my speech about issues around evaluation, What Works and the Education Endowment Foundation. As for the timeframe that the hon. Lady asked about, if I am unable to provide an answer in this debate, I will ensure that the Department writes to her and the Committee about it.

On the free hours provision that the hon. Lady mentioned, the proportion of disadvantaged two-year-olds taking up a Government-funded place continues to increase and has risen to about 72%—higher than ever before—so the entitlement is still successfully reaching the families who need it most. The 30 hours provision continues to help a wide range of families, and a lone parent has to earn only around £6,500 a year to access the 30 hours of free childcare. Parents are also eligible if they are self-employed or on a zero-hours contract. We will continue to provide local authorities with lists of potentially eligible parents in order to support them and directly target hard-to-reach families. It is important to reflect on that when we look at the evidence. There is an opportunity for positive data sharing and using data to inform local authorities.

[Tracy Brabin]

The Minister is being incredibly generous with his time, and I am grateful. I know that this is not necessarily his brief, but I want to flag up that I hear from maintained nurseries that eligibility for access to the 30 hours for two working parents is resulting in a widening of the disadvantage gap between children who access 15 hours as statutory and children whose parents work. Although it is a positive step to provide childcare for working parents, the disadvantage gap cannot be allowed to continue.

[Chris Skidmore]

The Government’s independent evaluations of early delivery showed that with 30 hours of free childcare about 78% of parents report greater flexibility in their working life, and a quarter of mothers can now work more hours. That is one aspect of the evaluation, but it is important that we continue to monitor all areas of the policy’s impact. We will continue to monitor the impact of the offer closely. I will ensure that the Department reflects on the comments that the hon. Lady has made about the 30 free hours issue.

On the question of protecting vulnerable children through effective children’s social care, we know that many children in need have experienced adversity and trauma, which is why we are strengthening children’s social care to ensure that it is effective and that it protects vulnerable children. The Department for Education children’s social care innovation programme has invested almost £200 million in 98 projects to develop, test and scale new approaches to supporting children in the social care system. We have also committed £45 million to the partners in practice programme, where we are working with 20 of the best local authorities to deepen our collective understanding of what excellent children’s social care services look like, while providing practical support to the sector. We are spending around £3.5 billion in total on our early education entitlements this year alone—more than in any previous year under any Government. We are supporting parents to improve the quality and quantity of adult-child interactions, as positive adult-child relationships are key protective factors against adversity and trauma. Following our successful home learning environment summit in November, we continue to work with businesses and other partners and are developing a campaign to launch later this year.

Looking beyond parents, we know that a skilled early years workforce is also key. Alongside our training for health visitors, we are investing £20 million in our early years professional development fund, which will offer training to practitioners in disadvantaged areas, particularly for the support of early language, literacy and numeracy outcomes. As I have already outlined, local areas have a key role to play in commissioning and delivering effective early intervention services to meet complex and specific needs locally. The Government want to support them in that task, as they should. I will give three examples, the first of which is the troubled families programme, where a multi-agency, whole family approach is advocated, in work with local areas to transform the way services are delivered. We committed £920 million to the troubled families programme between 2015 and 2020; we achieved significant, sustained progress with 130,000 families; and we aim to achieve a similar improvement for 400,000 families by 2020. Forty-nine per cent. of families on that programme have at least one child under the age of five.

The second example is the reducing parental conflict programme, which works with councils across England to integrate approaches and services to address parental conflict. It is supported by £6 million that we are investing to improve the outcomes of children of alcohol-dependent parents, because we know that alcohol misuse has a severe impact on parental conflict and childhood adversity.

The third example is the Department’s early years local government programme, which I mentioned earlier, which will focus on how local services work together across health, education and early help, to improve outcomes at age five. As part of that work, multidisciplinary peer reviews will support councils to identify reforms to services and to our early outcomes fund, which will provide £6.5 million of grants to local authority partnerships to improve the delivery of services. That programme will also look at what works, including effective models of service provision, and spread that learning across the sector.

As I have said, the Government remain strongly committed to the What Works initiative, embodied in three What Works centres—the Early Intervention Foundation, some of whose data analysis the right hon. Member for North Norfolk has mentioned, the Education Endowment Foundation and the centre for children’s social care. To improve the way organisations create, share and use high quality evidence for decision making and implementation, those centres are already producing a diverse range of important materials and support for local commissioners. Part of Government’s funding for the Early Intervention Foundation is being used to establish an early years transformation academy, which will provide a framework for sharing learning, including events and online material for leaders, commissioners and other stakeholders. More intensive academy work will begin in June 2019 and provide further opportunities to pool learning.

The Government will also, as we refresh individual Departments’ areas of research interest, consider including further research into early intervention methods for addressing childhood adversity. Some of the Departments’ published research aims for 2018 and 2019 already seek to tackle issues raised in today’s debate. For example, the Department for Work and Pensions will continue to investigate how best to support families in distress to reduce parental breakdown and separation. The Ministry of Housing, Communities and Local Government is taking forward work to support effective local government, which is key to delivering effective early intervention strategies. The Department of Health and Social Care is focusing on research on mental health. I have outlined the work that is being done to support children’s mental health and wellbeing in schools, which will help to build resilience to adversity and trauma. Interventions in the health system more generally will be tested to maximise effectiveness and cost-effectiveness. Finally, the Department for Education investigates the early years and seeks to foster childhood development for those with disadvantaged backgrounds, who are at higher risk of experiencing adversity and trauma in childhood.

Separately from departmental research budgets, UK Research and Innovation funds research and innovation across all disciplines and sectors, including disciplines directly relevant to this area. Funding for the Economic and Social Research Council has included co-funding a project with the Early Intervention Foundation. UKRI will continue to consider what future funding is most appropriate in that research area.

The right hon. Member for North Norfolk raised the issue of national data collection. There are currently two separate data collection and national reporting systems for universal health visitor review data. Data is collected via Public Health England’s interim process, which is a voluntary submission of aggregate data provided by local authorities that covers universal health visitor service delivery metrics and outcomes. However, that method of data collection is due to be superseded by a record-level collection through the community services dataset, for which NHS Digital has published the information standards and established the technical infrastructure.

It is also important that we reflect on the use and sharing of data at a local level. I mentioned the troubled families programme in connection with co-ordinating local approaches; the programme has also taken forward an early help service transformation model and toolkit, which provide practical advice on service transformation, explaining what it means, how it can be developed and how to measure and monitor progress locally. That will be shared with local partners. The local government programme will also allow local authorities to spend on digital advancements in data collection. As part of the peer review programme, best practice on data collection and sharing will then be disseminated nationally.

As to increasing the use of evidence-based programmes in free childcare, the Government are supporting early years settings to put in place high-quality evidence-based provision. I mentioned the £20 million professional development fund; the Government are also investing £4 million in trials focused on interventions that improve the home learning environment, delivered by the Education Endowment Foundation. Results from the trials will be available over the next two years and will be used to inform future policy for commissioning decisions.

[Tracy Brabin]

I am very interested in staff training. To return to a question that I asked in my speech, at what point—level 3, university, or whatever—would the relevant training be included? I would be very interested to hear the answer, because high-quality staffing is certainly at the heart of closing the disadvantage gap. It is about not just childcare, but education, so we need to ensure that all staff have all the tools at their fingertips.

[Chris Skidmore]

I have touched on some of the Government programmes that have been taken forward for staff training. The hon. Lady is absolutely right that we need to ensure that staff training takes place at every level, from those starting off in the early years workforce right through to continuous professional development for early years workforce leaders. I will have to write to her on her specific point about timing, as well as on the points she raised earlier. I hope that that is satisfactory.

As I mentioned, the Department for Education is reforming the early learning goals at the early years foundation stage. The first stage of these reforms will be followed by an external evaluation of the pilot, helping to generate learning in this area and allow reforms to be refined ahead of full roll-out.

The Government are absolutely committed to What Works and improving how the Government and other organisations create, share and use high-quality evidence for decision making alongside the What Works centres, including the Education Endowment Foundation and the What Works centre for children’s social care.

The Early Intervention Foundation has an important role to play in testing and communicating what works to improve outcomes through early intervention. The EIF has played a key role in bringing evidence and rigour to the early intervention debate. The Government have provided funding of £7.3 million to the EIF until 2020, and the Government will review funding for the EIF in the forthcoming spending review. The right hon. Member for North Norfolk mentioned the Chancellor of the Exchequer’s spring statement, and I am sure he will make representations to the Chancellor. I will ensure that this debate and its text are communicated to the Treasury so that it is aware of the points raised by the Committee in its report and by the debate today about the importance of continuing funding for the EIF going forward into the spending review.

I assure Members that the Government take the Committee’s report and the issues it raises incredibly seriously. I have set out our approach to childhood adversity and trauma, which includes the actions taken through programmes that are run and funded centrally. It is also about supporting local areas to ensure they are commissioning and delivering evidence-based early intervention services.

I have mentioned the specific issue of the strategy. The Government do not consider the formal publication of a national strategy to be the best approach at this time, and I have set out our current approach through the various programmes. The Government are confident that those programmes will bear fruit, but we will seek to review that approach through the spending review and the upcoming prevention Green Paper, which will build on the November 2018 Department of Health and Social Care report, “Prevention is better than cure”, and its priorities, which I set out earlier.

I have also mentioned that the early years ministerial group on family support will add to the Government’s current approach. I am sure that the Leader of the House, given her passionate commitment to this specific area and to taking forward cross-Government work, will take a keen interest in reviewing the contributions made in this important debate.

It is the role of Government to provide guidance on local approaches to early intervention, but there is a fine balance to be struck between local direction and central Government oversight. The Government believe that it is fundamentally for local authorities to determine how their services best meet the complex demands of their areas, not central Government, but we will nevertheless continue with our responsibility to support What Works initiatives and ensure that local systems are working well. The Government will also consider including further research into early intervention methods for addressing childhood adversity as we refresh individual Departments’ areas of interest. The issues that make up childhood adversity and trauma, such as verbal, physical and sexual abuse, parental separation, mental illness and alcohol abuse, are at the core of the work of numerous Departments and major programmes.

We want to ensure that we build long-lasting protective factors against adversity and trauma in the early years. The Government have invested in the early years. By 2019-20, we will be investing around £6 billion a year in early education and childcare support to cover free entitlements, tax-free childcare and the childcare element of universal credit. The Government see effective early intervention as essential to our work to bring about cost efficiency in public services and, above all, to ensure that the human factor is there to improve people’s lives and that children are not put at risk. The factors that Members have mentioned help to ensure that children have strong and healthy lives. As I have already outlined, the Government are putting research funding investment into early intervention initiatives.

Finally, as Members can probably see, I am the Minister for Universities and Science, so I wish to put on record the apologies of the Minister for Children, my hon. Friend the Member for Stratford-on-Avon (Nadhim Zahawi), for being unable to speak in the debate. He will happily meet the hon. Member for North Norfolk to reflect on the report and take forward any issues of concern that have been mentioned in the debate.

The Government are keen to continue to engage fully, as I do—wearing a different hat, as Science Minister—with the Science and Technology Committee. We are very grateful for the conclusions the Committee came to in its report.

Oral Answers to Questions

Chris Skidmore Excerpts

Tuesday 19th March 2019 Commons Chamber

[Stephen Gethins (North East Fife) (SNP)]

4. What discussions he has had with the Secretary of State for Scotland on support for small and medium-sized enterprises in Scotland.

[The Minister for Universities, Science, Research and Innovation (Chris Skidmore)]

We have regular discussions with our ministerial colleagues on this matter, and most recently on the £260 million borderlands growth deal announced by the Chancellor in the spring statement. Our industrial strategy sets out our ambition to make the UK the best place to start and grow a business, and central to that is our ongoing commitment to the British Business Bank, which supported £467 million of finance to more than 3,600 Scottish businesses in 2017-18.

[Stephen Gethins]

I thank the Minister for his response. He will be aware of the importance of banking services to small businesses, particularly in rural and more fragile areas, and the closure of banks has hit many of these small businesses hard, not least in East Neuk in my constituency. What action is he taking to look at, for example, increasing transaction remuneration to post offices, which are increasingly important to those businesses?

[Chris Skidmore]

I 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.

[Ben Bradley (Mansfield) (Con)]

5. What recent steps he has taken to support small businesses.

--- Later in debate ---

[John Howell (Henley) (Con)]

24. What steps he is taking to support the UK space industry.

[The Minister for Universities, Science, Research and Innovation (Chris Skidmore)]

In the past month we have invested £18 million in the OneWeb satellite constellation to deliver global 5G communications, which I announced at the European Space Agency in the Netherlands. Last week we announced £7 million for the SMILE—Solar wind Magnetosphere Ionosphere Link Explorer—mission. In addition, we announced £25 million for the PLATO—planetary transits and oscillations of stars—observatory mission, and last week we signed the Square Kilometre Array treaty, which will see £180 million invested in the world’s largest telescope.

[Steve Double]

I thank the Minister for that answer, but will he confirm that the Government remain positive about the potential of a horizontal-launch spaceport at Cornwall airport Newquay? Will he continue to work to provide the support needed to move that development forward, which would be of such benefit to the Cornish economy? Will he also come to Cornwall and see for himself the potential of the site?

[Chris Skidmore]

I thank my hon. Friend for his question; we had a positive meeting with the spaceport team last week. I am keen to do what I can to progress the hard work that has been done to put together an exciting project. The Government are investing £50 million to kick-start operations for a UK spaceport, including a £2 million fund for spaceports planning to host air-launched rockets and sub-orbital space planes. I will come down to Cornwall next month.

[John Howell]

Can the Minister confirm that it remains his intention to help the UK space industry by developing an alternative to the European Union’s Galileo system?

[Chris Skidmore]

The Government have committed £92 million to developing options for a domestic alternative to Galileo. The UK Space Agency is leading work with the full support of the Ministry of Defence. Contracts are being let with UK companies. Around 50 have made expressions of interest in the process, which will help to keep important skills and expertise in satellite navigation.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

The Minister might know that some of the finest engineering companies in Huddersfield are busy providing components for space probes, including the one that went to Mars. Our great town is really on the cutting edge, so will he visit Huddersfield and see what an enterprising, get-up-and-go town can do for small businesses and large businesses? Components come from all over Europe, so will he also come and reassure people who are terrified of what could happen with Europe?

[Chris Skidmore]

I can confirm that I will visit Huddersfield on 10 May. I am going to the university there, and I will ensure that I speak to the hon. Gentleman and arrange to meet the companies as part of my visit.

[Mr Speaker]

I say to the Minister, who is a serious academic, that I have had the great joy of giving a lecture at the university. It is an admirable institution and they are very hospitable, so I think they will very much look forward to seeing and hearing the Minister.

[Chris Skidmore]

When we look at our space industry, we see that it is truly part of the United Kingdom, right across every place. I went to Northern Ireland to see Thales and the work that it is doing on some of the satellite applications. Up in Sutherland in Scotland, we have a £31.5 million investment in vertical space launch. We want to ensure that our space industry—one of the fastest-growing industries in all of business—covers the whole of the UK.

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

7. What steps the Government are taking to support the development of marine renewable electricity generation.

--- Later in debate ---

[Vicky Ford (Chelmsford) (Con)]

T10. Last week the Chancellor announced investments in genomics, photonics, quantum computing and nuclear fusion. Does my right hon. Friend agree that investments in world-class innovation bring economic benefits for all?

[The Minister for Universities, Science, Research and Innovation (Chris Skidmore)]

The spring statement was indeed a statement for research, innovation and science. Looking at just one of those investments, there is £60 million to keep the Joint European Torus facility going, and there are hundreds of jobs and tens of PhDs at that facility. I am delighted that the Chancellor made that commitment as we move forward to 2.4% of GDP being spent on research and development by 2027.

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

T8. Can the Secretary of State explain whether he personally thinks the Prime Minister’s exit deal will make the UK better off than remaining in the EU would?

Draft Designs and International Trade Marks (Amendment etc.) (EU Exit) Regulations 2019

Chris Skidmore Excerpts

Tuesday 5th March 2019 General Committees

[The Minister for Universities, Science, Research and Innovation (Chris Skidmore)]

I beg to move,

That the Committee has considered the draft Designs and International Trade Marks (Amendment etc.) (EU Exit) Regulations 2019.

It is a pleasure to serve under your chairmanship, Mr Hanson.

The framework for protecting intellectual property is a vital part of our industrial strategy. The UK’s strong IP system drives creativity and showcases UK innovation. Leaving the European Union will not change that. We will continue to deliver quality rights-granting services, lead the world in IP enforcement and engage in international IP discussions.

This draft statutory instrument uses powers provided by the European Union (Withdrawal) Act 2018 to ensure that protection continues in the UK for registered and unregistered Community designs, and international trademarks and designs in the event of no deal. It also addresses other deficiencies in UK law that would arise on exit.

Under the EU designs regulation, the shape and appearance of a product can be protected under a registered Community design granted by the EU Intellectual Property Office. That system runs in parallel to our domestic system, so protection in the UK can currently be obtained by registration under either or both of the EU and UK systems.

Shape and appearance can also be protected under the unregistered Community design. That right is established automatically when a design is first shown to the public, and it is particularly valued by design-intensive sectors such as the fashion industry. As with registered design, the UK provides a parallel domestic system. However, the scope of UK unregistered design is different from that of the EU equivalent because protection is afforded only to three-dimensional designs.

In addition to the rights granted by the EU Intellectual Property Office, businesses can obtain EU-wide registered design and trademark protection through an international system administered by the World Intellectual Property Organisation. That system enables business to protect designs and trademarks in multiple territories via a single application, filed in one language. Both the EU and the UK are contracting parties to that system. As with registered EU trademarks and designs, international EU rights are protected through EU regulations, meaning that a failure to act will result in the protections afforded to those rights being lost.

The draft regulations in Committee provide replacement rights for those who own registered EU designs on exit day in the form of a “re-registered” UK design. For those holding unregistered Community design, we will preserve UK protection through the “continuing unregistered” design. The new UK rights will be fully independent of the corresponding EU right. However, they will retain the effective date of the EU design and, in the case of a re-registered design, any other relevant dates filed as part of the original EU application.

The scope of protection for EU unregistered designs is broader than that provided by existing UK unregistered design, so we are introducing a new type of UK right called supplementary unregistered design. By doing so, we will ensure that the full range of design protection provided in the UK before exit day will remain available after we leave the EU. That new right will function alongside existing UK unregistered design.

To ensure continued protection in the UK for international designs that are protected through EU designations under the Hague agreement, we will create comparable re-registered UK designs just as we are doing with registered Community designs. For international trademarks designating the EU, we will create a comparable UK trademark, using an approach similar to that set out in the EU trademarks exit SI, recently approved by both Houses; the Committee in this place was attended by several members of this Committee today.

As with re-registered designs and comparable trademarks created from registered EU rights, the new UK designs and trademarks will be fully independent of the corresponding international rights, but they will inherit their effective dates and be treated as if applied for and registered under UK law.

For those with registered Community design and international EU design and trademark applications that are pending on exit day, we will allow corresponding UK applications filed after exit day to claim the EU right’s earlier filing and priority date. To do so, an application must be submitted to the UK Intellectual Property Office within nine months of exit day.

The draft regulations also set out provisions to accommodate other particulars of EU and international design and trademark protection, including deferment of design publication and the use of subsequent designations to create multiple EU protections under a single international registration. The new UK rights can be challenged, assigned, licensed and renewed, so the instrument also sets out how such procedures will be accommodated. The IPO provided an outline of the changes through technical notices published last year, and it will provide full business guidance once the instrument has been made.

[Sir John Hayes (South Holland and The Deepings) (Con)]

On pending applications, people have proceeded using the existing system and will reapply to the new system. Can the Minister assure us that there will be no delay there? If people have had an application in for some time, that could affect their business. Can the Minister send out a clear signal from the Government that those people will not be adversely affected?

[Chris Skidmore]

I can absolutely give that assurance. I have full confidence in the IPO, in both London and Newport. I have visited the office to see its ongoing work in ensuring that the registration process is clear and consistent. When it comes to registered Community designs, it is important that the information is there—with many other issues, there is a lack of data—and that there is a simple transfer across. I am confident that that will minimise the impact on businesses; in fact, it will give them greater flexibility by providing that nine-month window for registration in the new UK-wide system.

[Anna McMorrin (Cardiff North) (Lab)]

Will the Minister confirm that there will be no additional cost to those making the international applications?

[Chris Skidmore]

I can confirm that there will be no additional cost to the businesses or to any rights holders wishing to register registered or unregistered designs. A schedule of payments has obviously been in existence for a while, and we brought it down significantly after the 2014 legislation. For instance, the £60 for a single application for an unregistered design is now down to £70 for 10 applications. With registered designs, the price has also come down, from £450 to approximately £150. I can touch on that later, but the important thing is that there is no cost for transferring registered design rights across to the new system. It is almost business as usual; we have just created a new system that continues the protection for rights holders.

The regulations are vital in ensuring that the intellectual property system continues to function if the no-deal outcome arises. They are essential for safeguarding rights, and for providing businesses with maximum certainty and clarity, and I commend them to the House.

[Bill Esterson (Sefton Central) (Lab)]

It is a pleasure, as ever—but especially at this hour of the morning—to serve under your chairmanship, Mr Hanson.

I start by picking up one of the Minister’s comments. He said that this is business as usual—but if there is one thing that Brexit is not, it is that. We can probably all agree on that, whatever our stance on the subject.

[Chris Skidmore]

If you vote for the deal, it will be.

[Bill Esterson]

I think, Mr Hanson, we are in danger of wandering into a slightly different part of the forest.

The Minister set out the arguments in favour of creating a system that addresses what will be needed in this country for both registered and unregistered designs to apply in the UK, and I have relatively few concerns about his remarks. However, as always with such regulations, there is the question of whether Opposition Members are in a position to give our full judgment on both the available information and the responses from the technical experts in the sector.

I put on the record, again, our concern about our ability to fully scrutinise what we are being asked to support. It is a common problem with regulations, often related to the speed with which they are being pushed through, their detail and technical content, and their importance. As ever, it is important to get that point across, as this is another example of costs—albeit the Minister is claiming that they are relatively small —for creating a functioning regime after we leave the European Union.

As the sifting Committee said in its report when it recommended that the draft regulations be considered in Committee,

“The work of conversion is clearly a major exercise.”

That work will involve 700,000 registered Community designs alone. The preliminary estimate is of £375,000, which may appear to be a relatively small amount of money, but that is clearly not without significant amounts of work. The Intellectual Property Office says that it is able to address that and that costs are recovered through fees. The Minister has pointed out that the fees have come down. I have no reason to doubt him on that, but it will take time, both for the authorities to process the change in arrangements and for businesses to make sure they are covered. I believe there is a nine-month window for businesses to adapt to the new regime—the Minister may wish to correct me on that. Perhaps he could also answer how the Government intend to make sure that everybody has the cover that they need and is aware of the changes that they need to make during that transition period.

I have one question for the Minister, the answer to which I did not catch in his opening remarks. Perhaps he can explain how the unregistered Community design system operates and how businesses obtain their protection without having to register for it. I note that there is a three-year period. Can he clarify how that system operates so that the protection is in place? From what he said, it is clearly an important part of intellectual property protection. Perhaps he could give us some clarity on how it operates.

As ever, there is the thorny issue of consultation or, to be strictly accurate, the lack of public consultation that we see with the regulations going through Committees every single week. I notice that no formal consultation was carried out, but that stakeholders were asked to give their opinions. Perhaps the Minister can tell us—I cannot find the information anywhere—who was consulted and what their responses were to those informal consultation discussions. It would have been very helpful to have that information in front of us; it would have helped to ensure that we were in the best possible position to judge whether we should or should not support the regulations. I hope that the Minister, if he does not already, will soon have a note on what the consultations were, who was consulted and what the responses were.

I want to tell the Committee of the key concern raised by the Alliance for Intellectual Property. It is not particularly concerned with the continuing regime in the UK; it is relatively confident that what the Minister has described meets its requirements. Its concern is the lack of reciprocity. If equivalent protection is achieved through the withdrawal Bill, it believes that the design sector will still be gravely at risk without reciprocal protection from the EU27. After we have left the European Union, designs that are first disclosed in the UK might well be sufficiently protected here, but will receive no unregistered Community design protection in the EU, because we will no longer be members. The AIP’s view is that this would have grave consequences for UK designers: according to a recent survey by Anti Copying In Design, almost 80% of them rely on the unregistered Community design right to protect their designs.

The EU is the largest export market for many UK design sectors, contributing over two-thirds of UK furniture manufacturers’ export revenue. Such a loss of reciprocity poses a serious threat to leading industry events such as 100% Design, London Fashion Week and Top Drawer, which creators from all over the world attend in order to reveal new and innovative designs. Without protection, designers will either have to run the risk of copying throughout the EU27 following disclosure, or simply avoid first disclosure in the UK altogether. Perhaps the Minister can advise on which route the Government think designers should take.

--- Later in debate ---

[Chris Skidmore]

I thank the hon. Member for Sefton Central for the contribution he has made to this debate, as well as the other right hon. and hon. Members who have contributed through interventions. I will endeavour to respond to the questions that have been raised.

I will first turn to the issue of public consultation, which has been familiar terrain in several of these no-deal statutory instrument Committees. The Intellectual Property Office has been engaging with businesses about the implications of exit since the referendum result, and I will turn to that engagement in a moment. The Department has used the existing Cabinet Office principles for consultation on all EU exit SIs and non-exit SIs, and details of any consultations undertaken are explained in all SIs’ accompanying explanatory memorandums. The Government have sought to maximise continuity in a no-deal scenario. At the early stages of the negotiations on the future partnership, as I have explained before in previous Committee debates, revealing the details of our continuity approach to public consultation would have risked our negotiating position.

[Bill Esterson]

I have heard the line about risking our negotiating position from Ministers before. Over the weekend we heard the US give exactly what its negotiating mandate would be in a trade deal. If the United States can do it, why can’t we?

[Chris Skidmore]

It is important to reflect on the fact that the process of the negotiations is one that we do through Brussels and across 27 other member states. It is right that we take a nuanced position. I note, however, the hon. Gentleman’s support for President Trump in this debate.

[Bill Esterson]

That really is a stretch!

[Chris Skidmore]

The individuals who took part in the technical review did so in a personal capacity. They were chosen because of their past experience as representatives of various stakeholder bodies, usually engaged in consultation with the IPO. The technical review required a fairly detailed knowledge of legislation—its practical implications as well as the context of the wider industry—and the framework of the EU international trademarks and designs legislation as a whole. We are confident that those individuals have the relevant knowledge and will be able not only to follow the approach being taken by the instrument in order to follow and identify any errors, but, importantly, any other issues that we might have missed. In no way was the IPO looking for people who would just agree with the approach or raise no issues. Although it is important for us, that would not have been for anyone’s benefit. Indeed, the discussions at meetings were robust and forthright, and attendees were keen to challenge the instrument and make sure it was the best possible going forward.

[Bill Esterson]

Other Ministers have told us who has been consulted when we have asked these questions. Is there any reason why he is not telling us who was consulted on this occasion? Perhaps he will write to me.

[Chris Skidmore]

In terms of the consultation process and the individuals acting in a personal capacity, I am not sure whether I have the authority to divulge their names on the Floor of the Committee at this particular moment. Perhaps I can write to the hon. Gentleman if I can request their permission to be named. They acted in a personal and private capacity as part of the consultation following the Cabinet Office statutory instrument guidelines on consultations. The framework and process was a trusted one. I am sure that having an opportunity to give private views provided for a greater opportunity to scrutinise the legislation and to be more honest and robust as a result.

We assessed the impact of the SI using the better regulation framework in line with the Treasury’s Green Book guidance. It was obviously deemed to be less than £5 million, so a full impact assessment was not required. Analysis has been focused on the direct impact of the relevant SI compared with current legislation, and analysis of wider impacts on the UK’s exit from the EU has been previously published in the form of long-term economic analysis, which was published in November 2018.

On the impact on business and the conversion of existing rights to comparable UK rights, we have committed to ensuring that the administrative burden on business is minimal. The teams at the ICO are making good progress on numbering systems for the new comparable rights and will communicate the changes as soon as possible. The IPO will also publish guidance in every language of the EU on its website so that rights holders in every member state will be able to access all the necessary information on their UK rights.

When it comes to the process of notification both within the EU and the UK, the IPO will publish a standard website notice in all languages, as I have said, confirming that holders of re-registered UK designs and comparable UK trademarks have been granted equivalent UK rights. The notice will continue to remain on the website after exit, and individual notifications to holders of EU and international trademark designs will not be issued. We are confident that there has been significant interest that will be progressed towards the guidance being published.

If rights holders do not want to be given the new rights, the statutory instrument contains an opt-out provision that allows the holder of a comparable UK design or trademark to request that it be treated as if it was never registered in the UK. That process can be exercised via completion of a no-fee letter or email to the registrar, requesting an opt-out.

Several issues related to costs for businesses. This has been covered in interventions, but I state again that there will be no fee associated with the creation of the new UK rights. The comparable UK registered design or trademark rights will be independent from the corresponding EU rights. Obviously, there will continue to be charges for renewal. When the comparable UK right expires, the standard UK renewal fees will apply. In terms of comparable UK registered design, the renewal fee, which will be the same as it is at the moment, will increase for each successive five-year period of protection, from £70 for the first renewal up to £140 for the fourth and final renewal period. That is consistent with current practice. The holder of the comparable UK registered design will be required to pay these UK renewal fees in addition to those associated with the corresponding EU right in order to preserve protection in both the UK and the EU. For a comparable UK trademark, renewal fees will be charged according to the goods and services protected under the mark.

The hon. Member for Sefton Central raised the issue of the costs for Government—trading funds. The IPO receives no central Government funding, so costs are recovered through fees. In terms of the process for creating UK comparable rights, the actual process will be automated. Because these rights are currently valid and enforceable in the UK, the IPO already has access to related data—these are recorded in the IPO’s records system and published on web-based search platforms—and as a result we will be able to create the new comparable UK rights without a significant amount of additional work.

When it comes to the issues about preparation for EU exit by the IPO, resources have been managed as part of the preparations. That includes staff recruitment and training. The creation of new rights on exit day will not itself create a need for additional resources beyond those already being addressed as part of our business-as-usual operational management.

[Matt Western]

Can the Minister—perhaps in writing, because I assume that he will not have the numbers at his fingertips—provide detail about the staffing that has been brought in, to provide reassurance to businesses? They are really concerned. Intellectual property, as we well know, is an incredibly valuable thing for this country, and it would be very helpful for us to explain the scaling up that has been going on in that department.

[Chris Skidmore]

I thank the hon. Gentleman for his point. I would be happy to write to him with some of the details on the resource issues of staffing. I went to visit the IPO’s headquarters down in Newport and was deeply impressed by the organograms and the plans that it had put in place. Almost week by week and day by day, it has been planning for EU exit. Its staff morale is one of the highest for a Government organisation across the country, not just in Wales. I really got the sense that the IPO was content with the process, was managing the process and was a happy organisation in taking forward the process, but I will write to the hon. Gentleman on some of those details. I got no sense that there was undue pressure on the IPO as a result of the changes taking place.

Let me turn to the issues raised about designers and disclosure of unregistered designs. An unregistered design will need to be first disclosed in the EU to be protected in the EU should we leave without a deal. However, disclosure in the EU may have implications regarding any corresponding UK unregistered rights, such as the supplementary unregistered design and the existing UK unregistered design rights. This statutory instrument contains provisions to allow us to negotiate reciprocal arrangements on first disclosure with third countries, which may be the EU, individual countries within the EU, or more widely, but that will still be subject to future agreement.

If we retain first disclosure in the EU as a basis for establishing post-exit UK unregistered design, we will create an imbalance between the UK and EU systems, providing EU-based designers with an unfair advantage. Designs disclosed in the EU would count for establishing both UK and EU protection, whereas designs disclosed in the UK would count for establishing UK protection only.

The law in this area remains unclear, with prominent legal commentators disagreeing on the subject, but our approach reflects the published interpretation of the EU IPO. We think that that provides a more consistent approach for designers to understand and apply. The approach may be subject to future change if courts decide to take a different interpretation, but the SI does recognise disclosure in other qualifying territories, and although we will not have a reciprocal arrangement with the EU on exit day, we may have the opportunity to reach such an arrangement in the future.

[Bill Esterson]

The Minister’s answer on that point justifies the concerns raised by the Alliance for Intellectual Property, some of which I listed. He gave great cause for concern about the uncertainty and the differing legal opinions there. Can he give the Committee an indication about the discussions that have already taken place with our EU counterparts on how we achieve a reciprocal arrangement and what estimate the Government have at the moment of how long it will take to reach a system where we can avoid the problem he set out, which is of real concern, over damage being caused to a designer by registering in one jurisdiction and not in any other?

[Chris Skidmore]

The context of Government negotiations have been prioritised around that future relationship and finding a deal with the European Union. I am sure that, having raised these points of uncertainty, the hon. Gentleman will want to vote for this deal, to ensure that he can—there is no point in frowning at me. In every Committee meeting we come to, the hon. Gentleman raises points of concern and then goes into the House of Commons and votes the opposite way. Designers need to know that the hon. Gentleman is taking an approach that will provide maximum possible uncertainty to the sector. For him to raise these points here today is completely paradoxical to the approach that he takes in the Chamber.

We have agreed provisions on IP that will provide legal certainty and protect the interests of rights holders in the withdrawal agreement. It is important for the Committee that I place this on the record. It includes that registered Community designs should continue to be protected in the UK after the implementation period; that existing unregistered Community designs should continue to be protected in the UK after the implementation period; that the UK should take measures to ensure that international trademarks and designs designated in the EU, which are protected prior to the end of the implementation period, continue to enjoy protection in the UK; that IP rights exhausted in the UK and EU before the end of the implementation period shall remain exhausted in both areas; and that UK legal representatives will be allowed to continue to represent their clients before the EU IPO in cases that are ongoing at the end of the implementation period and in addition to the implementation period, which means that the current regime and arrangements for intellectual property will continue to operate as they do now until the end of that period. The provisions ensure that existing EU-level IP rights and the international rights designated in the EU will continue to be protected in the UK after the end of the implementation period.

I am sorry to sound so passionate about the deal, but I truly believe that, when it comes to IP, the deal is the best possible solution on the table to ensure that we can protect the interests of rights holders. I urge the hon. Gentleman to vote for it.

[Bill Esterson]

The problem is that, whatever deal goes through—and even if we leave without a deal—the same problem applies: that this issue of registering either in the EU and affecting UK rights, or registering in the UK and affecting EU rights, applies. That is the bit that has not been resolved. It is a complete red herring to say that which deal we vote for affects the outcome of these regulations.

[Chris Skidmore]

As I said, we have got this as the withdrawal agreement going forward; however, we must also turn to the issue of the future partnership. Arrangements on future co-operation will be a key part of the future partnership. We will seek a comprehensive arrangement on trade that will cover a wide range of sectors, including IP. As part of going forward with that future relationship, the UK will continue to explore participation within the unitary patent system and the unified patent court. It is important that we reflect on that going forward.

In summary, I want to make sure that when we come to consistency, UK law says that anyone who lives in or carries on a business in a member state can claim UK unregistered design protection. That is because of section 217 of the Copyright, Designs and Patents Act 1988, which says any qualifying person—that is, any person who lives in and runs a business in a qualifying country, as defined to include member states—can claim the UK unregistered design right. We did not make any change to that. After exit day, people in businesses in the EU will continue to claim the UK unregistered design right while people and businesses in the UK would lose that equivalent right in the European Union. That creates an imbalance between UK rights holders and EU rights holders that we must change. UK law is therefore being amended to limit the geographical criteria for a qualifying person to claim the UK unregistered design protection. That is important for providing certainty, clarity and consistency, above all, as part of this SI.

I hope that my answers have been helpful. These regulations are an absolutely necessary part of making sure that the IP continues to function if no deal is agreed. Above all, I hope that Members will consider that a deal will be in the best interests of IP rights holders; but I also hope that the Committee will now support this statutory instrument today.

Question put and agreed to.

Resolved,

That the Committee has considered the draft Designs and International Trade Marks (Amendment etc.) (EU Exit) Regulations 2019.

Competitiveness Council

Chris Skidmore Excerpts

Monday 25th February 2019 Written Statements

[The Minister for Universities, Science, Research and Innovation (Chris Skidmore)]

My noble Friend the Parliamentary Under-Secretary for State for the Department of Business, Energy and Industrial Strategy (Lord Henley) has made the following statement:

The Competitiveness Council took place on 18-19 February. I represented the UK on Day 1 (Internal Market and Industry); and by the Minister for Universities, Science, Research and Innovation, my hon. Friend the Member for Kingswood (Chris Skidmore), on Day 2 (Research and Space).

Day 1—Internal Market and Industry

Commissioner Bienkowska presented the Commission's analysis on integrated value chains in the single market. A number of member states called for the single market and services to be at the centre of the March European Council discussion on jobs, growth and competitiveness. The UK recalled the close integration of UK and EU supply chains. The presidency concluded that it would summarise views in writing to the President of the European Council.

The presidency and member states welcomed the co-ordinated action plan on artificial intelligence (AI) and stressed the need for EU and national action to boost cross-border research networks and data flows to maximise EU competitiveness. Commissioner Bienkowska called for the EU to put in place ethical and legal frameworks in line with fundamental rights, stressing the importance of flexibility to encourage innovation. The UK noted that our approach aligned closely with the co-ordinated action plan and called for continuing collaboration to help maintain Europe’s international competitiveness. The Council adopted “Conclusions on the co-ordinated plan on the development and use of artificial intelligence made in Europe”.

The Commission introduced its long-term climate strategy stressing the importance of all sectors contributing to decarbonisation. Member states supported the need for coherence across all policy areas, noting the importance of the circular economy and driving innovation. The UK and others highlighted the opportunities for EU industry provided by combating climate change which could be expected to lead to an overall net increase in higher skilled jobs.

On the European semester, the Commission highlighted competitiveness priorities following the adoption of the annual growth survey in November 2018.

The Commission updated the Council on the recent ECJ ruling against the real driving emissions (RDE) legislation. The UK and others called for the Commission to take action to ensure greater certainty for the automobile industry and sufficient time for them to adapt. The Commission noted that the ECJ did not question the revised tests themselves, but rather the way the Commission had enacted the legislation.

The presidency noted that agreement with the Parliament had been reached on the directive on digital tools in company law and the regulation on enforcement of EU harmonisation legislation on products. The Commission noted that the regulation would improve product safety by facilitating engagement with businesses, co-ordination of market surveillance activities and co-operation between market surveillance authorities and customs authorities.

Day 2—Research

Day 2 of the Competitiveness Council focused on an exchange of views on the Horizon Europe Package—Framework programme for research and innovation 2021-2027. The presidency concluded that there was a broad consensus on making missions relevant to all member states and that the European Innovation Council (EIC) would need to operate in complementary manner with the European Institute for Innovation and Technology (EIT) and InvestEU. The presidency said that it would try to find a balanced compromise in forthcoming trilogues.

The Council concluded with a brief update on the ITER project. The Commission confirmed that ITER was back on track and delays/cost overruns had been addressed.

[HCWS1355]

Oral Answers to Questions

Chris Skidmore Excerpts

Tuesday 12th February 2019 Commons Chamber

[Giles Watling (Clacton) (Con)]

6. What recent steps he has taken to help businesses create more highly skilled jobs in Tendring.

[The Minister for Universities, Science, Research and Innovation (Chris Skidmore)]

The South East local enterprise partnership, which covers the district of Tendring, has received £590 million through the local growth fund to drive regional development. Business support for small and medium-sized enterprises is available through the LEP’s Business Essex, Southend and Thurrock growth hub. The LEP is funding projects to strengthen coastal communities, including Tendring, as well as supporting the highly skilled offshore renewables sector.

[Giles Watling]

High-skilled jobs are clearly useless without anyone to fill them, and the employee supply chain necessitates a clear role for further education. I recently signed a cross-party letter to the Chancellor calling for further education funding to be increased to above inflation in the next financial year. Does the Minister agree with me and 164 other colleagues that that is a good idea?

[Chris Skidmore]

The Government have protected the base rate of funding for 16 to 19-year-olds until 2020 and are working closely with the post-18 funding review led by Sir Philip Augar to ensure a coherent vision for further and higher education. As part of its local industrial strategy for the district of Tendring, I welcome the fact that the South East LEP is investing in further education, including £10 million for the Colchester Institute’s Science, Technology, Engineering and Mathematics Innovation Centre, its Learning and Technology Centre in Braintree, and a centre of excellence in health and care in Colchester.

[Mr Philip Dunne (Ludlow) (Con)]

7. What steps he has taken to ensure diversity of supply in the energy market.

--- Later in debate ---

[Vicky Ford (Chelmsford) (Con)]

10. What comparative assessment he has made of trends in the level of spending on research and development in (a) the UK and (b) other EU member states.

[The Minister for Universities, Science, Research and Innovation (Chris Skidmore)]

The Department regularly assesses comparative levels of R&D expenditure in the UK and in EU member states. The Office for National Statistics has estimated that overall gross R&D expenditure in the UK was £33.1 billion in 2016—1.7% of GDP, compared with the EU average of 1.9% of GDP. We must do more, so in our industrial strategy we have committed to spending 2.4% of GDP on R&D across the UK economy by 2027.

[Vicky Ford]

Many British-based scientists are concerned that their participation in cross-border science networks might be jeopardised by Brexit. Can the Minister confirm that it is this Government’s intention that the UK should continue to participate in Horizon Europe’s next framework programme, FP9, and that the best way for us to help to make sure that that happens is for this House to support the withdrawal agreement?

[Chris Skidmore]

I entirely agree with my hon. Friend on this issue. The Government’s priority is a smooth and orderly exit from the EU as set out in principle in the EU withdrawal agreement. Voting for the agreement would provide continuity and reassurance for researchers in continuing to participate in the Horizon programmes. It is no secret that we want to explore association with Horizon Europe. The political declaration makes clear our joint intention to establish terms and conditions regarding UK participation in EU programmes as part of our future relationship.

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

As I said to the Minister yesterday, I have two universities in my constituency, and they are very concerned about research and development; they do a lot of work for companies like Jaguar Land Rover, and mainly in the industrial sector. What guarantee can the Minister give that the level of funding will be maintained after 2020? The Chancellor has not committed to that so far.

[Chris Skidmore]

I am proud, as the Universities Minister, that we have in this country three of the world’s top 10 universities when it comes to research. We want to ensure that we continue to have that international reputation. We have made Treasury guarantees on the underwrite extension, ensuring that we continue to be part of all the projects that are part of Horizon 2020. We want to ensure that the association with Horizon Europe has universities at the front and centre of it.

[Gavin Newlands (Paisley and Renfrewshire North) (SNP)]

11. What recent discussions he has had with the Chancellor of the Exchequer on fiscal support for businesses based in Scotland to prepare for the UK leaving the EU without a deal.

--- Later in debate ---

[Jo Platt (Leigh) (Lab/Co-op)]

T4. Some 77% of UK organisations operate with limited cyber-security and resilience. The current strategy is failing to protect business from critical cyber-threats. How will the Department swiftly increase business cyber-resilience?

[The Minister for Universities, Science, Research and Innovation (Chris Skidmore)]

The hon. Lady is correct to say that cyber-resilience must be a key part of our industrial strategy. I was in Northern Ireland last Friday to discuss with organisations how they could be involved in our AI programme and with setting up masters programmes in cyber-security.

[Derek Thomas (St Ives) (Con)]

T7. I was glad to hear of the Minister’s offer to visit the south-west and meet our hon. Friend the Member for Torbay (Kevin Foster). Will she continue all the way down to Penzance and meet post offices in my area that are threatened with closure or have already closed?