(8 years, 6 months ago)
Lords ChamberWe will be publishing further proposals on funding and the logistics of this scheme in June. I note the noble Baroness’s points but we should focus on apprenticeships. I am a great one for focusing on an area and getting it done right, rather than trying to extend it right across the board of training, as she suggests. But of course we can learn from our experience.
My Lords, Carolyn Fairbairn, the director-general of the employers’ organisation, the CBI, said last week that a radical rethink of the plans for the apprenticeship levy is needed if the Government are to meet their target of 3 million new apprenticeships, and that they need to be trialled before a full rollout. What is the Minister’s response to these concerns?
We have of course been trialling them through our trailblazer scheme, but the suggestion from the CBI that we should delay the levy and the new apprenticeships is a mistake. The year 2017 is a long way away. For decades, no Government, including ours, have sufficiently addressed the fact that business invests too little in skills development. Frankly, it is time we made the change.
Not all of them, I suspect. This gives me the opportunity to say that I think we are doing the right thing and that the levy will help to correct two decades of underinvestment in apprenticeships and insufficient attention to quality. Our whole approach is to increase standards, make every apprenticeship last at least a year and generally change the whole basis of training in this country.
My Lords, I welcome the growing number of apprenticeships, and I met some very impressive apprentices at a dinner in the House yesterday evening. To meet the Government’s target of 3 million by 2020, many more SMEs will need to be persuaded to offer apprenticeships. What are the Government doing to encourage SMEs and make it easier for them to offer apprenticeships?
There are two things. First, we need a much greater level of awareness; I spoke about that in my first Answer. Secondly, we need incentives. Of course the levy will provide more funding that can be made available, and 98% of employers will not have to contribute to that levy at all. There is also the apprenticeship grant for employers, which provides £1,500 to small businesses taking on their first new apprentice aged 16 to 24.
I was delighted that the noble Earl, Lord Kinnoull, could bring his own practical experience of the market to the debate, including his experience during the financial crisis. That was picked up well by the noble Lord, Lord Stoneham, who rightly emphasised the cyclical nature of this vital UK industry.
Retentions themselves are not always a bad thing. One knows that from having domestic household repairs where frankly it is essential practice to keep back a small sum in case remedial work needs to be done. However, I have been persuaded by discussion at Second Reading and this afternoon that a review of the practice of retentions would be a good idea. The existing timeframes for change are extraordinary. I did not dare say that last time we discussed this before the election, but I am glad to be able to say it today and to hear the same comment from the noble Lord, Lord Stevenson.
I would be keen to make sure that the review was likely to develop recommendations capable of providing an enduring solution to what is a pretty deep-seated and rather complex issue—we are all agreed that it is not the simplest thing in the world. There is some work to do to ensure that the review is well grounded. Of course, it needs to cover a number of issues such as cash flow, and look at the period of time before retention must be released. It also needs to look at the small business angle, which is obviously relevant to today’s debate, including bricklaying.
I propose that the Government consider the best way to take the review forward. I will write to noble Lords in due course setting out precisely how we will do that; the terms of reference and a detailed timetable outside the Bill. If it helps, I am happy to commit to the review being completed within nine months of the Bill being passed, as suggested in Amendment 39 by the noble Lord, Lord Aberdare. This will give a little incentive to speed, because we have been here before and it would be nice to feel that progress could be made. I hope that the noble Lord, Lord O’Neill of Clackmannan, will not be disappointed by my helpfulness in that respect.
There is not a lot more to say. I hope that noble Lords will welcome the review and will feel able to close down the issue today. On the basis that I have described, I hope that they will happily withdraw their amendments.
My Lords, I am extremely grateful to all noble Lords who have spoken in this debate. I have been very encouraged by the general tone of the debate. A number of noble Lords raised important practical questions which the review will address. I am particularly encouraged and pleased by the Minister’s response, for which I thank her. I very much look forward to receiving details of the review and the basis on which it will be conducted. I declare myself ready to do whatever I can to ensure that she secures her place in history as the Minister who ended retentions. I am happy to withdraw my amendment.
My Lords, I entirely share the noble Lord’s concern about territorial licensing. Reforms will need to be very carefully assessed to ensure that they do not undermine incentives to invest in the production of content, particularly by our European and British creative industries that contributed £77 billion to UK GVA in 2013.
My Lords, the EU digital single market programme includes 16 separate initiatives covering issues ranging from parcel delivery to a European cloud. Can the Minister tell us which of these the UK Government see as having the highest priority and what specific results they would like to see emerge within the next couple of years?
My Lords, we see the 16 headings as a good menu from which to choose. What we are hoping to see is some progress quarter by quarter. As I have already said, we see the priorities for the next few months to be copyright and consumer protection, but the other headings are also important because of the huge potential of digital to fuel innovation and growth across Europe and to help our competitive position.