Skills: Importance for the UK Economy and Quality of Life

Lord Harrington of Watford Excerpts

Thursday 9th May 2024 Lords Chamber

[Lord Harrington of Watford (Con)]

My Lords, it gives me the greatest pleasure to follow my noble friend Lord Elliott’s maiden speech, to which I will return a bit later. First, I thank the noble Lord, Lord Aberdare, for allowing us to have this debate. Of all the many speeches, I will refer particularly to that of my noble friend Lord Baker, who I have been a willing acolyte and devotee of for many years. I congratulate him on the work he has done for the UTCs. We have heard an excellent maiden speech from my noble friend Lord Marks of Hale—which is the wrong side of the Pennines to me, as well as to my noble friend Lord Elliott. I look forward to many contributions from him in the future.

I must briefly return to my noble friend Lord Elliott, because our lives have a lot in common. I am following him today, but he followed me to Leeds Grammar School, which we both attended—unfortunately for me, with a 20-year gap. He chose to be Lord Elliott of Mickle Fell, which, as he explained, is where his grandparents come from. It has a link with Leeds Grammar School. My noble friend referred to it as one of the highest peaks in Yorkshire. For me, it was a place of terror and one where I had absolutely no skills whatever; it was the location of our school outward bound centre, which I am sure my noble friend thrived at. For me, I promise your Lordships, it was not the highlight of a school career.

Our paths crossed again in later life in London. He has shown skills in so many things that he has done, with his work as a policymaker with very successful groups, such as the TaxPayers’ Alliance and others, for which he deserves absolute credit. I wish in 2016 he had used his skills in, from my perspective, a rather better direction than Vote Leave. He did say he was not going to mention Brexit, and I will not, but I have remained, and remain to this day, a major fan of the noble Lord, Lord Elliott. The work he has done has always been to do with business and jobs, as typified now by the Jobs Foundation that he mentioned.

I speak in this skills debate as a person who prided myself, in my business life, on training apprentices and giving people opportunities in life. Luckily enough, in my political life, my first job was as an apprentice adviser to David Cameron in 2011. That was probably because he could not fit me in to promote me to be a Minister at the time, but I took it as being very important. With Nick Boles and others, I worked on the apprenticeship levy. The apprenticeship levy, to me, was an excellent idea because it felt that, if businesses were paying to train apprentices, they would in fact hire apprentices. It sounds very simple, but very good in theory. It was only some years later, when I reappeared as Business Minister, following other jobs, that I found most meetings I attended had people criticising the apprenticeship levy. It did have its faults—and it does have its faults to this day. But its achievements have been very significant in increasing the number of apprenticeships.

I am delighted to see Robert Halfon here in the Chamber today. He has contributed so much to skills. One of his early jobs in that was probably taking over from me as chairman of the grand-sounding Apprenticeship Delivery Board. Actually, it was all of our responsibility to bring apprenticeships to the forefront of companies that had not considered them otherwise.

Many good things have come from that. We have seen ups and downs with apprenticeships, but the overall trajectory seems very good. We have seen the implementation of a lot of different standards, and apprenticeships in fields that had never dreamed of before. Degree apprentices, banking, estate agencies, accountancy—you name it, a lot of people have been given an opportunity in life that they would not have had otherwise.

I would like to say, though, on the crucial manufacturing sector, which is absolutely at the centre of the skills debate and of most plans to bring about growth in the UK economy, I am very concerned. Starts have gone down from 120,000 to 45,000 per year, according to Stephen Phipson of Make UK, an organisation which has done so much in the training of apprenticeships. We have tried to look into why that has happened, because most people would think that apprenticeships in engineering, manufacturing and things like that are natural types of apprenticeship. There are a number of reasons. It appears that private training companies are dropping out of apprenticeships training. Their costs have gone up dramatically and the figure placed for these apprenticeships—which I think was £26,000 per year—has not increased over the time. Of course, the cost of providing those apprenticeships has gone up, so many have dropped out. We need to recognise this, and to get these firms back into providing apprenticeships.

Secondly, there are other providers, such as colleges of further education; they appear to be dropping out of training these kinds of apprenticeships as well. We have tried to find out why. There are a few technical matters: for example, they are not allowed to use the apprenticeship levy for capital expenditure. Of course, if you are training engineers, the tools and the equipment are extremely expensive. It seems to me rational that they should be allowed to use the kind of money from the levy to facilitate that, because it is as much part of the apprenticeship as the labour.

So we need to look into this carefully. I hope that this Government and future Governments will listen to Make UK and to people who really want to see apprenticeships succeed, because they know how important the skills agenda is to the economy.

Oral Answers to Questions

Lord Harrington of Watford Excerpts

Monday 29th April 2019 Commons Chamber

[Mr Speaker]

We are under considerable pressure of time, but time must be found to hear the voice of Watford.

[Richard Harrington (Watford) (Con)]

Thank you, Mr Speaker. Before anyone asks, I did not run the marathon yesterday; I thought I should give other hon. Members a chance. However, I would like to declare a new—

[Mr Speaker]

How about saying, “Question No. 16”?

[Richard Harrington (Watford) (Con)]

16. What his timescale is for the disbursement of allocations from the condition improvement fund.

[The Parliamentary Under-Secretary of State for Education (Nadhim Zahawi)]

I congratulate all colleagues who ran the marathon. The disbursements of funding for successful projects under the condition improvement fund 2019-20 will start in June.

[Richard Harrington]

I must disclose an interest, in that I am now a director of the Watford UTC, and I thank Lord Agnew for all the help he has given that university technical college.

I am delighted that four schools in Watford were successful in their bids to the fund for improvements, which is known as the CIF—I know that that sounds like a disinfectant, but it is actually really important. The successful schools were Watford Grammar School for Boys, the Grove Academy, the Orchard Primary School and Parmiter’s School. This is excellent news, but will my hon. Friend give me an idea of when the schools will receive the money from this welcome funding boost?

[Nadhim Zahawi]

Academies and sixth-form colleges can apply for funding over two financial years. The funding starts in June, and allocations for new projects will continue up until spring 2021. My hon. Friend has been a champion for children and schools in Watford.

Skills and Growth

Lord Harrington of Watford Excerpts

Wednesday 17th June 2015 Commons Chamber

[Tristram Hunt]

I do not think that I criticised any jobs. I hope that the hon. Gentleman is making sure that those working in the potato industry in his places of employment are getting the necessary training, support and growth.

We are failing miserably to provide young people with an education that spreads enough opportunity and excellence for all. The long tale of underperformance—the bane of practically every Government for at least the past 30 years—remains a stubborn reality. You will not be surprised to learn, Mr Speaker, that I believe that the Labour party education manifesto contains some excellent measures that could have boosted our education, skills and training system. For a start, we would have protected further education, sixth-form colleges and sixth forms from the round of cuts already heading their way. We would have thought it rather curious that private schools continue to get tax breaks whereas sixth-form colleges have to pay VAT. That is not what we would call fair. The Government chose to spend £45 million on the Westminster academy free school, while we would have supported education and training in the communities that need it most. That is simply the great moral and ethical difference between the Labour party and the Conservative party.

I strongly encourage the Government to match our manifesto investment in dedicated independent careers advice for young people. By reallocating some £50 million from the universities’ widening participation fund, which, as far as I can see, has not done nearly enough to widen participation, we could have funded effective careers guidance. Our labour market is particularly weak in matching skills supply with demand and there is some evidence that misallocation is a component of our productivity challenge. We need to be more ambitious.

[Richard Harrington (Watford) (Con)]

Does the hon. Gentleman agree that well-meaning Governments have increased year on year the target for the number of people going to university without giving any real thought to whether there will be suitable jobs for them when they leave?

[Tristram Hunt]

One of the interesting components of both the rise in the popularity of apprenticeships, which I know the hon. Gentleman is doing a great deal to support, and some of the costs associated with university is that we have a much greater insight into the relative success of an apprenticeship compared with a degree. I think there is more realism about what young people can get from each institution. The hon. Gentleman has a point and I would take it right back to the mass conversion of polytechnics to university status. I am not sure that that was necessarily the best initiative introduced by the Conservative party, but we can also think about that 50% target being the best use of some of the human capital.

We need to be more ambitious when it comes to developing an institutional pathway for advanced technical skills, whether they are called national colleges or institutes of technical education. We need far more stringent and demanding apprenticeships, which I know the hon. Gentleman supports. Indeed, I would suggest that what we need on apprenticeships is not dissimilar to the dramatic reduction in the number of semi-vocational, grade-inflating, GCSE-equivalent qualifications following the Wolf report—arguably the Government’s most important achievement in education over the past five years. Far too many children in communities such as Stoke-on-Trent were put on courses with little or even no labour market value, and yet there is absolutely no doubt in my mind that a similar, gallery-pleasing numbers game is developing with the re-badging of short-term, low-quality workplace training as apprenticeships.

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[Richard Harrington (Watford) (Con)]

Thank you, Mr Deputy Speaker. Let me welcome you back to the Chair.

I listened carefully to the maiden speech of the hon. Member for East Dunbartonshire (John Nicolson), and I commend him unreservedly for the articulate and eloquent way in which he told us about his constituency and some of the issues there. Having heard what he said about the constituency, which I must confess I have never visited, I think that he may have been wrong when he said that the Romans had been held there. From the sound of it, they may have found it so nice when they got there that they decided that they might as well stay and enjoy the food and the view; but, whatever the reason, they decided to stay. I do not know whether the hon. Gentleman is descended from the Romans, but, having seen him on television and having heard him speak today, I wish him a long and prosperous career. I am sure that we have not heard the last of him.

I shall try to confine myself to eight minutes as you asked, Mr Deputy Speaker. I shall restrict my speech to two specific issues, one of which I think is key to the development of skills among younger people. I refer to the development of university technical colleges. Contrary to some of the partisan comments that are made regularly by the hon. Member for Stoke-on-Trent Central (Tristram Hunt), UTCs are a classic example of a project with a cross-party foundation. I commend both Lord Baker, a former Conservative Education Secretary, and Lord Adonis, a former Labour education Minister, for the help that they gave me with the setting up of a UTC in Watford. The Watford UTC is chaired by David Meller, a non-executive director of the Department for Education who is very well respected. It opened just 14 months after we had dreamt it up in a café in Watford, which shows that bureaucracy, like everything else, can be overridden with determination.

What struck me most during a conversation that I had with Lord Baker and Lord Adonis at the outset was a statistic that they have often produced. Apparently, 40% of people who work in bars and cafés in London are university graduates. I am not one to undermine universities; like many Members of Parliament, I was the first member of my family to go to a university, and it was a huge thing for me. The fact is, however, that many people have been driven to go to university without really thinking of it as part of a future career. Somewhat depressingly, I nearly always agree with the hon. Member for Dudley North (Ian Austin), and I thought he was absolutely right to say that not enough young people either go to university or take up other options.

[Kevin Brennan (Cardiff West) (Lab)]

I agree with what the hon. Gentleman has said about UTCs. Labour Members have always strongly supported their establishment. Does he think that all pupils who attend them should have to do the EBacc?

[Richard Harrington]

The response that people give on television quiz shows when they are not quite sure of the position is “Ask me one on sport.” I may be able to give the hon. Gentleman an answer after listening to the debate on Monday, but perhaps I can help him for the future by saying that he might have asked a better question if he had asked whether I agreed that children who go to UTCs should not really be the kind of children who would consider going to university. I do not agree with that at all.

The advantage of the UTCs is the practical education that they provide. Their pupils are thinking about careers at the age of 12 or 13, which is really good. They can combine an academic education, studying for GCSEs like everyone else, with learning specific skills. The UTC in Watford is geared towards hotel and hospitality management, an area in which there are lots of good skilled jobs available, as well as IT skills, the need for which is universal. It is commendable that there are already 30 UTCs in England, with nearly 6,500 pupils, and by September 2016 there will be 25 more. I have met the principals of various UTCs, including Emma Loveland, the principal of the one in Watford, and their view of education is based on their belief that this country is under-skilled and that conventional education—notwithstanding the academies, which are very good—has been producing quite a lot of children who are either unskilled or not in a position to become skilled.

[Dame Angela Watkinson (Hornchurch and Upminster) (Con)]

Does my hon. Friend agree that the preparation for the world of work needs to involve the acquisition not only of practical or academic skills but also employability skills? Students need interpersonal skills that include good manners and good timekeeping. They need to appear interested and look as though they really want the job when they go for an interview. That is all part of getting on to the first rung of their career ladder.

[Richard Harrington]

I agree with everything that my hon. Friend has said. I am pleased that the UTCs are leading the way for the education system now to include ways of getting a job in the whole process, rather than that being an afterthought at a careers fair, as it used to be in the sixth form.

[Ian Austin]

Like the hon. Gentleman, I am an evangelist for the UTC programme. Does he agree that we need a massive expansion of the programme, so that we have a UTC in every town? They should become part of the fabric of education so as to give more young people the opportunity to learn in a vocational setting. Every child in the country should have that choice, not just the ones in Watford and the other towns that have UTCs at the moment.

[Richard Harrington]

It will not surprise the hon. Gentleman to learn that I agree with every word he has said. It is important that Members on both sides of the House should champion UTCs in their constituencies. Their development is driven by individual people, whatever the Government policy might be. The Baker Dering Educational Trust is really good, but in the end, one individual has to drive the development of a UTC. If the local Member of Parliament could be that individual, or find that individual, it would help tremendously. That is how the academy programme started. Lord Adonis found individuals and talked to them over lunch—which they usually paid for, I might add—to persuade them to establish academies. So I think that engagement is okay.

I am conscious of Mr Deputy Speaker’s guideline time of eight minutes, but I hope that he will allow me to deduct the time I spent congratulating the hon. Member for East Dunbartonshire on his maiden speech, because I want to talk a little bit about academies. [Hon. Members: “Cheeky!”] Well, I have learned that we can speak in this place until they tell us to shut up—that is for the benefit of new Members—although Mr Deputy Speaker is far too gentlemanly to say that. [Interruption.] I am not going to talk about academies. He has given me the look, so I shall go straight on to apprenticeships.

I think there is consensus that apprenticeships are the key mechanism for getting skills into the workplace where they are needed. Unfortunately, for a lot of people of my generation and above, apprenticeships still carry the image of some bloke who could not get into any form of education lying around in a boiler suit with a spanner. I commend the coalition Government for taking steps to show that that was a ridiculous and ignorant assumption. The first apprentices I ever met in my constituency were doing what used to be called bookkeeping—it is actually business administration—which I confess appeared to me in my ignorance to be completely unrelated to apprenticeships. The number of apprenticeships achieved under the last Government—2.3 million starts, according to the Secretary of State—is commendable. I am sure everyone would agree that apprenticeships are becoming much more sophisticated, and the announcement by Ministers of a comparison with degree level education is absolutely right.

In the time remaining, I would like to concentrate on two things that we need to overcome, both of which are related to sentiment. A lot of work still needs to be done to enhance the status of apprenticeships. The first thing relates to schools: I do not believe that they do enough to promote apprenticeships. That is based on my experience in my constituency. The teaching profession is very much geared towards graduates, as most of its members are graduates. [Interruption.] Will you bear with me for one minute, Mr Deputy Speaker? [Interruption.] Okay, two minutes—[Laughter.] I’ll take five if you like.

The second point relates to the status of apprenticeships among young people. Will the Minister have another look at the original proposal for a royal college of apprenticeships? Under such an arrangement, everyone graduating from an apprenticeship at whatever level would have an independent certification. That would do a lot to help employers to change their sentiments towards apprenticeships, and it would certainly mean a lot to the apprentices if they could become members of the royal college.

Oral Answers to Questions

Lord Harrington of Watford Excerpts

Monday 2nd March 2015 Commons Chamber

[Mr Timpson]

My hon. Friend’s long-standing support for this policy is extremely gratefully received. He will be pleased to hear there has been a huge interest in the latest cohort, which will take up its training in September this year. It is our intention to do what we can to expand the programme in the future for the very good reasons my hon. Friend has given.

[Richard Harrington (Watford) (Con)]

20. If she will encourage and extend the use of the Teach First scheme.

[The Minister of State, Department for Education (Mr Nick Gibb)]

Teach First has made a real difference to the education and life chances of thousands of children in some of the most disadvantaged areas in our country. Since the Government came to office, we have more than doubled the number of trainees on the programme and spread its reach to every region in the country. For 2015-16, we have expanded the programme again. Funding has been allocated for 2,000 trainees, 33% up on last year. More than 50% of the secondary allocation will focus on priority subjects: maths, science, modern languages, computing, and design and technology.

[Richard Harrington]

I thank the Minister for that comprehensive answer. On a recent visit to the absolutely splendid Grove academy in Watford, it was brought to my attention that it can be difficult for the school, and for Watford schools in general, to attract staff because 2 miles down the road, with London weighting as it is, people receive £2,500 a year more for the same job. Given that Watford is demographically and occupationally similar to most London suburbs, will the Minister look at London weighting in this respect, so that Watford jobs become more competitive with London jobs next door?

[Mr Gibb]

My hon. Friend raised these issues when I visited Watford and a number of schools there recently. The pay reforms we have introduced over the last two years have given schools greater flexibility to decide how much they can pay a teacher and how quickly pay progresses. Our reforms are providing schools with the discretion they need to address any school-level recruitment and retention problems they may have. However, as my hon. Friend also knows, decisions about the definitions of inner and outer London and the London fringe area are ultimately a matter for the independent School Teachers Review Body.

Free Schools (Funding)

Lord Harrington of Watford Excerpts

Monday 12th May 2014 Commons Chamber

[Michael Gove]

The first point is that no money was diverted away. It is clear that free school spending augments spending on providing local authority school places. It is clear also that local authorities have sufficient funds. Under the previous Labour Government, the hon. Gentleman’s own local authority of Birmingham received £45 million to provide additional school places. Under this coalition Government, it has received £65 million. Some 87% of new primary school places through the free schools programme are in high or severe areas of need, so they are augmenting—adding to—the provision that those areas need. I should also point out that the hon. Gentleman is fortunate enough to be in a city that enjoys, in the Perry Beeches chain, one of the best performing chains of academies and free schools anywhere in the country. Thanks to the success of head teachers such as Liam Nolan, children in Birmingham are at last enjoying a high quality of comprehensive education of the kind that I know he and I want to see spread across the country.

[Richard Harrington (Watford) (Con)]

As I am sure you will be aware, Mr Speaker, when I was elected to be the Member of Parliament for Watford at least half of the initial constituency inquiries and complaints were about the shortage of school places in the west Watford area. Since then, the excellent Reach Free school, which I have visited, has opened. Parents are impressed with it and so are the students, and there are two more in the pipeline. Given that this is clearly an area of need and that free schools are cheap and easy to operate, what possible complaint can the Opposition have?

[Michael Gove]

Once again my hon. Friend makes a very fair and reasonable point. He also provides me with the opportunity to remind the House that in Hertfordshire, under the previous Government, £25 million was allocated for new school places. Under this coalition Government, £122 million has been allocated for new school places, and that is in addition to the free schools programme. This Government’s approach to fiscal discipline and greater efficiency, with school places costing less than half what they cost under the previous Government, means that we are able to meet need and to raise standards in every part of the country.

Oral Answers to Questions

Lord Harrington of Watford Excerpts

Monday 24th June 2013 Commons Chamber

[Richard Harrington (Watford) (Con)]

4. What steps his Department is taking to support schemes to help non-resident fathers to learn parenting skills and engage with their children.

[The Parliamentary Under-Secretary of State for Education (Elizabeth Truss)]

The Children and Families Bill underlines our expectation that children normally benefit from the involvement of both parents. In addition, the early years teachers and early years educators qualifications that we are introducing this year and next year will include training in engaging parents in their child’s development and education.

[Richard Harrington]

One of the most interesting and inspiring constituency visits that I have made recently was to the Oxhey early years centre, which is run by a fantastic person called Helen Walsh. While I was there, I saw an excellent programme for non-resident fathers run by the Sunshine Children’s Centre in partnership with Watford football club. It brings together children and fathers who do not normally see their children to play, and helps the fathers with their parenting skills. Will the Minister confirm that the Government support this kind of thing? If she has time, perhaps she would like to come to Watford with me to see the centre.

[Elizabeth Truss]

I completely agree that what the Sunshine Children’s Centre in Watford is doing is excellent; it is a very good example of best practice. I am delighted that the centre is working in partnership with Watford football club, which is the team that my dad supports. Perhaps he would be keen to visit the centre. We recently put out our new children’s centre guidance, which puts much more focus on getting parents involved in their children’s development and upbringing and on supporting families to be emotionally resilient. This is absolutely the kind of thing we want to see more of.

Oral Answers to Questions

Lord Harrington of Watford Excerpts

Monday 21st January 2013 Commons Chamber

[Michael Gove]

I am grateful to the hon. Gentleman for his point. I remind him that he and his colleagues would have more credibility in discussing public spending if they were to acknowledge the terrible mistakes made by the previous Labour Government that led to the desperate economic situation in which we find ourselves. The figures are—[Interruption.] Silence in class! Spending on early intervention has gone up from £2.2 billion to £2.36 billion to £2.39 billion to £2.51 billion. Even at a time of tremendous economic pressure, spending is increasing. I should have thought that that would be good news in anyone’s language.

[Richard Harrington (Watford) (Con)]

8. How many students are enrolled in university technical colleges; and how many he expects to be enrolled by September 2013.

[The Minister for Schools (Mr David Laws)]

Five university technical colleges are open that, once full, will educate more than 2,600 young people. Twelve more UTCs are preparing to open in September and interest in enrolling is very high.

[Richard Harrington]

I congratulate the Government on the progress in the expansion and implementation of UTCs, and particularly the work of Lord Hill, the former Minister. I am sure that we all wish him the best in his new position. I must confess that I hope that there will be a UTC in Watford before very long. Does the Minister agree that the time must come very soon when all students of the appropriate age group have access to UTCs? Does he also agree that UTCs are an excellent weapon in reducing the long-term unemployment of young people by providing the skills they need to get jobs?

[Mr Laws]

I also pay tribute to the work of Lord Hill in this area and I note my hon. Friend’s representations on behalf of Watford. He is absolutely right that it is essential we provide the opportunity for all young people to access high-quality vocational education. He will be interested to hear that we are already well on the way to exceeding the Government’s target of 24 UTCs by 2014.

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[Michael Gove]

I am grateful to the hon. Gentleman for raising this issue. I read his column in the Stoke Sentinel on precisely this issue, with admiration both for his passion and for the quality of his prose. I assure him that we will absolutely ensure that, across the country, teachers who are well trained will be placed in the schools that need them most. That is why we have reformed pay and conditions—there is still silence from the Labour party on whether or not it supports our changes—and why we have made changes to teacher training through the school direct programme. Let me offer the hon. Gentleman a meeting with the head of the Teaching Agency, Charlie Taylor. After that meeting, if he is not impressed by Charlie and his commitment to helping the poorest children do well, I am afraid that nothing will convince him.

[Richard Harrington (Watford) (Con)]

T7. I am sure that Ministers will be aware that Holocaust memorial day will take place this week and that the work of the Holocaust Education Trust has been commended by this and previous Governments. Are they also aware that the Lord Merlyn-Rees memorial lecture will take place this evening here in Parliament—in the Attlee suite—at which the former Foreign Secretary, the right hon. Member for South Shields (David Miliband), and Mr Danny Finkelstein of The Times will speak? I hope that Ministers will implore their constituents and colleagues to attend.

[Michael Gove]

I look forward to listening to both the right hon. Member for South Shields (David Miliband) and Mr Finkelstein of The Times this evening. Let me place on record my gratitude to the last Government for instituting state support for the Holocaust Education Trust, and particularly to my predecessor as Secretary of State, the right hon. Member for Morley and Outwood (Ed Balls), for the courage and commitment that he showed to the fantastic work of the HET. I extend my congratulations also to its chief executive, Karen Pollock, who is an inspirational public figure and richly deserved her recent recognition in the honours list.

Self-Employment

Lord Harrington of Watford Excerpts

Tuesday 24th January 2012 Westminster Hall

[Richard Harrington (Watford) (Con)]

It is a pleasure to serve under your chairmanship, Mrs Riordan, and I am pleased to see so many hon. Members present, particularly the Minister for Further Education, Skills and Lifelong Learning and the shadow Minister, the hon. Member for Chesterfield (Toby Perkins).

This debate came about as a result of a conversation between me and my hon. Friend the Member for Wyre Forest (Mark Garnier), who is sitting next to me, about people in this country setting up their own businesses. We reached the conclusion that not enough people do so. Everybody knows the benefits of people setting up their own businesses, but there is a certain culture against self-employment and business in this country, notwithstanding everything that this and the previous Government have tried to do. Politicians brand the terms “entrepreneur,” “small and medium-sized enterprises” and similar without really understanding what they are about. My hon. Friend and I have, therefore, decided to focus the debate on how Governments can change attitudes.

Like so many people of my generation, I was the first member of my family ever to go to university. Few people at that time had the idea of setting up their own business, and I do not think that much has changed. I have two sons, one in his late teens and the other in his early 20s, and from what I have observed of my family life, as well as that of my sons’ friends and during my constituency duty of visiting schools—some very good, others not so good—and further education colleges, there is very little idea, culture or yearning among people, from the most academically gifted to the least so, to set up their own business. However, I commend people such as my hon. Friend the Member for Newton Abbot (Anne Marie Morris), whom I am pleased to see and who is co-chair of the all-party group on micro-businesses. Others have also tried very hard in the main Chamber, as well as elsewhere in the Palace of Westminster and throughout the country, to help the cause of small business. The Government themselves have also made a lot of effort, and I do not feel that it would be right for me to criticise them.

This debate will be divided into two halves. I will deal with social, cultural and educational barriers, and what I think the Government might do about them. My hon. Friend the Member for Wyre Forest will then deal with taxation, regulation and other more direct governmental aspects. It is also nice to see so many other hon. Members present who want to take part.

On the face of it, self-employment seems to be going well. Recent figures show that 300,000 people have become self-employed in the past year, which means that they are registered with Her Majesty’s Revenue and Customs as being self-employed, but I do not think that that necessarily means that they have set up their own business. Some of them will, legitimately, have taken on part-time functions that classify as self-employment. I do not want to get into a political debate about whether that is self-employment or not, or whether the recession is to blame, because I want to focus on a culture that will give ambitious young people the desire to set up their own business.

The education system is the most important opinion-former for young people, and many aspects of it are encouraging. Like many other hon. Members, I have Young Enterprise groups in my constituency. We have Hertfordshire Young Enterprise in Watford, and I have seen many teams of young people setting up little businesses at school. They are largely supported by voluntary contributions from local businesses and they get mentors. In fact, only last Saturday, there was a display of the best teams at the Harlequin centre in Watford, which is well known to some Members present and to those more illustrious alumnae of the better Watford girls school—without naming names—whom I am also pleased to see present. It is interesting to see that these teams set up real businesses, producing bracelets, handbooks and all sorts of things. Some of the products make them a bit of money, and it is good to see local businesspeople helping them. This, however, is only useful if it gives those young people a desire to say that, when they graduate—assuming that they want to go to university; I am not saying that that is necessarily the most important thing—they want to set up a business, but I do not find that to be the case.

I recently visited Watford grammar school for boys, which is one of the better schools in the country— 30 boys are going to Oxford or Cambridge this year. After I finish my talk to the sixth form, I always ask them what they want to do after university—most of them go to university, but I would ask a similar question at a school where not so many pupils do so. When I ask how many want to be lawyers, accountants or involved in advertising or the media, many hands go up, but when I ask who wants to set up their own business, very few want to do so, including those who have taken part in the education system’s successful schemes.

[Toby Perkins (Chesterfield) (Lab)]

The hon. Gentleman is making an important case for the role that education can play. Another part of getting young people excited about running their own business is the experience of those who do so at the moment. Today’s Financial Times includes an article on an Aviva report that involved interviewing 500 owners of SMEs for its research. A quarter of them said that they were considering returning to work as an employee, because of how difficult it is at the moment to run a small business. When people who actually run their own business find it that difficult, will it not be more difficult to persuade young people to do so?

[Richard Harrington]

The shadow Minister makes a valid point. I read that article in the Financial Times online—if I cannot sleep at 3 o’clock in the morning, I find that that is the best way to get back to sleep. It focused on the general problems of the economy and how much more difficult it is for people who are self-employed and have their own business. Some of those people look towards employment as an answer, and I do not disagree with anything that was said. I am sure that some people want to go back to the comparative security of employment, but I do not think that that changes my main argument. People becoming self-employed and setting up their own businesses is one of the most important things for this country to expand the economy.

[Priti Patel (Witham) (Con)]

I come from a small business family. My parents were immigrants to this country and it is interesting to see the number of immigrants who are self-employed. My hon. Friend’s premise is to get young people engaged in self-employment. Does he agree that part of the challenge is getting started, which is always very difficult, particularly for young people who feel insecure about doing so? Does he also agree with the concept of a youth investment fund to provide Government funding or incentives that give people a cushion and confidence to develop their own ideas to become self-employed?

[Richard Harrington]

I appreciate that comment, because I intend to address the youth investment fund, which is important. Indeed, Sir Richard Branson has expressed an interest in this debate. He is elsewhere in the House at the moment and will join us later. The fund is important, but it is just one aspect and I hope to come back to it shortly.

On the education system, it frightens me that 60,000 people a year do GCSE business studies—this was true of my own sons—and are forced to learn accounting ratios, liquidity ratios and the difference between US generally accepted accounting principles and British accounting standards, but there is nothing whatsoever that will give any of them any desire or incentive to relate to business as they see it, which is buying a product and selling it at a profit, or providing a service for which people will pay. That is a real gap in the system, which, at the moment, is filled by Young Enterprise and various other very good schemes. However, that does not change the deep cultural point that people in this country do not perceive business as something to do that is either socially or economically worth while.

[Mrs Helen Grant (Maidstone and The Weald) (Con)]

On igniting the flame of desire for a young person to start a business, does my hon. Friend agree that it would help if we had better, bolder, more ambitious career advice encompassing enterprise for our kids and young people at school and university?

[Richard Harrington]

That is a very valid point. It could help and it is part of the whole picture that I want to build up in this brief speech.

We have to tell young people that setting up a business and employing people is socially acceptable and good for the country, and that they will make a lot of money. If they want fast cars, big houses and all that stuff, providing they pay their taxes, well done to them. It is very easy in politics to take examples of capitalism not working, of people being paid large amounts of money without doing much work for it and of people avoiding tax. We all have our views on those things and I think that everyone would agree that many of those issues need correcting. However, my fear is that such matters help to fuel the view among young people that business is not a very cool thing to be in, which is not right.

A socially responsible young person should be told, “Yes, you can do the kind of occupation that is directly socially responsible. You can be a teacher; you can be a nurse; you can qualify as a doctor and help to cure cancer; you can be a social worker. Those are all very good. But if you decide that you want to go into business and employ people, providing you pay your taxes, that is as much use to the country, if not more, because you are helping many people in their way of life. You are helping to fund the teachers, the doctors and the social workers and it is a very, very creditable thing to do.” Society should say to such a young person, “Well done to you. You have done something that is very worth while. Do not believe the stuff about Gordon Gekko and greed is bad. Actually, greed is quite good. Providing you pay your taxes and employ people, you are really contributing a lot to society.”

One of the big problems in this country is leaping over that barrier to make people think. Let us consider the notion of wanting things. People will only go into business to make money. I did it to make money. I did it because I did not have any money, and I did not like not having it. There is nothing wrong with that. People have to understand that going into business is a good thing to do. When I got my business to the level of employing 600 people, it was a constant nightmare. I was often worried. I did not sleep at night for thinking, “Have I done the right thing?” My wife once told me at 4 o’clock in the morning—she did not help matters; she never says things at 4 o’clock in the morning that help matters—that I was directly responsible for the lives of nearly 2,000 people. That is quite a burden of responsibility. People might think, “He’s filthy rich,” or, “He makes loads of money.” However, whatever people think and say about those in business, they do not believe that they are performing a socially responsible function.

I want the Government and all of us who are in the opinion-forming business—that is what politics is, irrespective of what party hon. Members belong to—to realise that something has to be done to change that attitude, because it is in the national interest.

[Julian Smith (Skipton and Ripon) (Con)]

Does my hon. Friend agree that teachers have a major role to play? What does he think teachers need to be doing and saying to young people on the subject of enterprise?

[Richard Harrington]

I thank my hon. Friend for that comment. The problem is that teachers by definition have chosen teaching as a career, so it is very hard for them to communicate on that. I do not want to take much more of this Chamber’s time, but I will come on to a proposal that I think answers my hon. Friend’s question.

I am not being critical of what the Government are doing. Yesterday, the Prime Minister and other Ministers made an announcement about this year being the year of the business and said that a minibus will go around different institutions, helping to give people the idea to set up businesses. All that is very good, but the cream of young people who are thinking, “I’m going to go to Goldman Sachs,” or, “I’m going to become a top man or woman at the Bar,” or, “I’m going to be a partner at Deloitte,” need to think, “Actually, the status of my setting up my own business and employing people will launch me to a higher level in society. I will be applauded and not thought of as a person who tries to avoid taxes and should hide the fact they have bought a decent car.”

The last vestige of the class system in this country is contained in the attitude that business is a bit grubby, something to be looked down and not something that proper chaps do. Until we change that attitude, we will not have enough people setting up businesses, employing people and providing the growth that we need in the future.

[George Freeman (Mid Norfolk) (Con)]

rose—

[Richard Harrington]

I will give way, after which hon. Members will be relieved to know that I shall be brief with my comments.

[George Freeman]

I congratulate my hon. Friend and my hon. Friend the Member for Wyre Forest (Mark Garnier) on raising this important debate. I also congratulate Virgin on the support and work that it is doing in this field. Like many hon. Members here, I am sure that he agrees—he has touched on this—that part of what we must do is to help those youngsters who do not have the experience of entrepreneurship and self-employment through their family, so that they can experience it through schools. Many of us in our constituencies can help and, indeed, are helping with schemes. In my constituency, we have set up a programme called the Norfolk Way enterprise bursary and we are linking school leavers with local businesses, which can be very empowering. Lastly, does my hon. Friend agree that it is very striking that some of our best entrepreneurs, for example, Richard Branson and Bill Gates, are not graduates? They started their businesses pre-university, which sends a very powerful message to youngsters who are feeling disillusioned and disengaged by the mainstream curriculum. Some of our most deprived communities could benefit hugely from such initiatives.

[Richard Harrington]

My hon. Friend makes very valid points. I hope that I speak for all hon. Members involved in this debate when I point out that Richard Branson and Bill Gates are examples of people whom we would regard as being very successful and would look up to. Both Richard Branson and Bill Gates were rejects from the mainstream academic system. Obviously, when I say “rejects”, I do not mean that they were not up to it, but that they were, through whatever personality they had or whatever came about, not part of it. My hon. Friend’s helpful intervention supports my argument, rather than the other way round.

In my constituency of Watford, there are some excellent initiatives. For example, Wenta, which is run by Chris Pichon and Sharon Gaffney, has many schemes to help schools give young children the opportunity to become entrepreneurs and to create an incubator for people who are without a job to help them set up their own business. Lots of good efforts are happening, but the fundamental point is to ask people to think culturally, socially and educationally. There is still a feeling against the acceptability of business in this country that is not present in Germany or the United States. As I have said, such an attitude is a result of hundreds of years of looking down on business.

[David Morris (Morecambe and Lunesdale) (Con)]

I agree with everything my hon. Friend has said. Back in the 1980s, the manpower allowances service scheme was brought in by Margaret Thatcher’s Government. That scheme took people who were on the unemployment register and gave them twice the amount of unemployment benefit, so that they could go self-employed. Indeed, I was one of those people, and I built up a business that employed more than 100 people and experienced the same sleepless nights as my hon. Friend.

--- Later in debate ---

[Richard Harrington]

I absolutely agree. Indeed, I was also one of those people. My hon. Friend is talking about a business start-up scheme whereby if someone was unemployed, they got £100 a week. If they did well, they paid tax on it. That scheme helped a lot of people to start their business. I think that my hon. Friend the Member for Wyre Forest will discuss many of the schemes that the Government are doing.

I have a final proposal for the Minister. There should be an institution at university level—whether it is called a university technical college, a special university college or whether it is part of an existing university, such as the university of Hertfordshire, which does a lot of work in the field of business studies and management training—that exists entirely to train and help people to set up businesses. The course should be run predominantly by people who are successful in business and who are prepared to give up their time to do that, rather than by people who have taken business studies. At least half the course should involve practical work on how to set up a business. Sir Richard Branson’s scheme for the youth investment fund could help to fund it, as perhaps could the Government if local business people were to become involved. Students may include mature students as well as those from sixth forms going into the normal higher education system, and when they graduate they should have set up a business that either works and is doing well, or does not work. If it does not work, it should not mean that they do not graduate, because many people in business try things that do not work.

[George Hollingbery (Meon Valley) (Con)]

rose—

[Mrs Grant]

rose—

[Richard Harrington]

I give way first to my hon. Friend the Member for Meon Valley (George Hollingbery).

[George Hollingbery]

I have set up several businesses, some of which were not successful, but one of which was, and I am very aware of the shadow Minister’s reasonable point that 25% of people are seeking to go back into employment because of the difficulty in starting a business. Does my hon. Friend agree that we must be careful not to sugar-coat setting up a business? It is a difficult career, full of challenges, and if we teach it in schools and universities, we must be realistic. People must understand that failure is part of the education process, and that although it may lead to success, the road on the way will be bumpy.

[Richard Harrington]

That is an exceptionally good point, and I am sorry that my hon. Friend, like me, in later life has had to do the job that we are doing now instead of being in business. However, I know that he, like me, benefited greatly from his time in business. His serious point was well made. The alternative of salaried employment for a company is not secure either, and many people lose their jobs. My generation may be the last one that believed that the professions provided a job for life. There is a risk element now.

I return to my university college, which I hope the Minister will immediately decide should be located in Watford, because that is the obvious place for it. Watford is a good example for small businesses. It used to depend on two heavy industries—printing and lorries—but it now has more than 1,600 small businesses, and the employment background is small business, so Watford would be a suitable place for the college. It would be an ideal location because of being well known internationally as a centre for commerce, culture, intellect and so on.

My serious point is that the Government, with all the excellent measures that they are taking, should consider introducing a degree on setting up a business—obviously, that is not what it would be called—helped by local business people who would agree to take part for perhaps two or three days a week. Students could set up real businesses that would go on to provide real employment for people. That is where academia should meet the practicality of setting up a business.

[Toby Perkins]

rose—

[Richard Harrington]

I will happily give way to the hon. Gentleman, but my hon. Friend the Member for Maidstone and The Weald (Mrs Grant) rose first.

[Mrs Grant]

Does my hon. Friend agree that banks need to be more reasonable in their behaviour and attitude to businesses and potential business clients, and that if they were, that would encourage business and future enterprise? At the moment, banks are so overly cautious that they are impeding business.

[Richard Harrington]

I agree with my hon. Friend, and my hon. Friend the Member for Wyre Forest will speak about that.

[Toby Perkins]

I want to explore the hon. Gentleman’s idea. He has rightly identified that many successful entrepreneurs with great business careers were not academically inclined, and perhaps those who have that motivation and spark do not sit well with long periods of study. How does he square that argument with his idea that people should undertake three or four years of study to set up a small business, when many of the best small business people have been instinctively brilliant rather than studiously and academically brilliant?

[Richard Harrington]

I have to accept the logic of that point. Not everyone who wants to go into business would go to the sort of college that I am proposing. Many people would start businesses as happens now. Many people who have been in employment may decide when they become a bit older that that is for them. There are different routes to the same objective. However, I believe that an all-star college with teaching by people such as Sir Richard Branson and senior politicians and business people—people who have been in business—would show that the Government are serious, and that the status of such a course is as good as those at Oxford, Cambridge and so on. It is wrong for people of my age to use the expressions of younger people, but that would show that it is cool to set up a business, and just as good as anything else. In addition to the many other things that the Government do, they could help with that, and it would not cost too much money.

Apprenticeships

Lord Harrington of Watford Excerpts

Monday 19th December 2011 Commons Chamber

[Mr Hayes]

The hon. Gentleman is renowned for his insight, and I had thought until today that he was equally renowned for his patience. I said that I would deal with quality and I assure him that I will also deal with the length of apprenticeships. I think he is right. Although there is no direct, guaranteed link between the length of an apprenticeship and its quality, there is a relationship. It is not a direct correlation, but it is a correlation none the less.

Today I will set out my demands for a minimum length for apprenticeships. That is perfectly reasonable. As I said, it is not a guarantee of quality, but it will certainly offer considerable assurance to the hon. Gentleman and others who, like me, are determined that quality should match quantity. The hon. Gentleman has, over many years, supported my view that technical education is critical not merely because it serves an economic function—because of its utility—but because of what it does for social mobility and social cohesion. Drawing on his patience and insight once again, I ask the hon. Gentleman to wait a few moments. I shall be speaking about the issue at considerable and eloquent length.

The figures that I cited show that numbers were up by more than half in the 2009-10 academic year. I want to make the point firmly that that includes an increase of about 10% in the number of apprentices under 19. I remind hon. Members that that Government achievement has been completed not merely because of our concentrated effort and the funding that we have put in place, although that is critical, but thanks to the work of further education colleges and other training providers, businesses coming forward and creating apprenticeship places, and learners and their families seizing the opportunity with both hands. The real credit lies with the learners, the training organisations and the businesses that allowed that expansion in the apprenticeship programme to take place.

[Richard Harrington (Watford) (Con)]

SQI in Watford offers 10-week apprenticeship courses followed by 10-week placements. They lead to 85% of those taking part being in permanent employment. I do not think that the length of an apprenticeship is everything.

[Mr Hayes]

My hon. Friend has a lot to be pleased about in respect of apprenticeships; as he will know, in his constituency their number has grown by 98%. I did say that I did not think there was an exact correlation between quality and the length of a course, but I think there is a relationship. By setting down a marker about the minimum length of an apprenticeship, we will drive up quality. We will certainly reassure those who are genuinely committed to the apprenticeship programme, but have doubts about the tension between quality and quantity, that we are serious about standards. That matters.

I take my hon. Friend’s point. It may be possible, particularly for older learners with greater prior attainment, to top up skills—perhaps they are moving from a level 2 to a level 3 qualification, or they already have many of the skills necessary to gain their first level 2 qualification. None the less, I still think that length matters.

I should like to put the debate in context, Madam Deputy Speaker; you would expect me to do no less. The Government’s macro-economic policy is built on twin pillars—reducing the deficit and reshaping our economy to make it more sustainable. That second core aim is served by the apprenticeship programme, because it assists in recalibrating work force skills so that productivity rises and competitiveness grows. Britain’s future chance to prosper lies in a high-tech, high-skill economy and to prosper in that way we need a high-tech, high-skill work force.

The recent announcements of reform to the programme concentrated on three areas key to the programme’s continued expansion and success: how to get more employers involved in offering apprenticeships; how to ensure that apprenticeships continue to offer people, especially young people, a firm first step on the ladder that leads to fulfilling careers and further learning; and how we ensure that the money that we spend on apprenticeships has the greatest success.

In the end, apprenticeships are jobs and the programme is demand-led. That means that the growth depends on employers coming forward to make places available. In the current economic climate jobs are in short supply, notably for young people, so the record increase in apprenticeship numbers is remarkable. Hon. Members will join me in commending the 100,000 employers that are using apprenticeships to develop work force skills—helping their businesses, but also providing opportunities for people across this country to grow their skills and improve their prospects.

Our work to recruit more employers to our cause goes on. Only this morning, I was at No. 10 Downing street briefing major employers on what apprenticeships can do for them. They were as committed to spreading opportunity and to social justice as I am.

Our objective is to improve and strengthen the programme even further so that more individuals and employers can access the benefits of high-quality apprenticeships. Overall, employer ownership of vocational skills is the key to our approach. This ambition informs all our priorities in moving forward: first, by reducing bureaucracy to an absolute minimum, speeding up processes and boosting employer engagement; secondly, by safeguarding quality, raising standards, and enhancing the reputation of the apprenticeship brand; and thirdly, by focusing future growth where the returns and benefits are greatest, including growth sectors of the economy, small and medium-sized enterprises, young people and new employees.

SMEs tell us that they still face considerable hurdles in taking on apprentices, and we have taken a serious look at what we can do to help to remove the barriers that they face. This has rightly been raised on the Floor of the House by Members on both sides and in all parties. I can announce today that, first, we will bring reduce to one month the time it takes for an employer to advertise an apprenticeship vacancy, including identifying the provider and completing an agreement on a training package between the employer and the provider; and secondly, we will remove all health and safety requirements that go beyond what health and safety legislation requires. From 1 January, employers that meet the Health and Safety Executive’s requirements as set out in “Health and safety made simple” will be deemed to provide a satisfactory level of compliance. We will also work with the insurance industry to encourage an approach that is proportionate to risks, and with training providers to develop new service standards for supporting SMEs to be included in all contracts for apprenticeships delivered from March 2012.

In addition, we are committed, in a significant new pilot programme, to taking radical steps to give businesses direct access to up to £250 million of public funding for training and apprenticeships over two years. This pilot is a key part of the Government’s growth review. It will route funding directly to businesses, will be more efficient than current arrangements, and will give businesses real purchasing power in the schools marketplace to secure the support that they need.

Oral Answers to Questions

Lord Harrington of Watford Excerpts

Monday 7th February 2011 Commons Chamber

[Mr Gibb]

I pay tribute to my hon. Friend’s work in Loughborough. When she and I visited Humphrey Perkins high school and Loughborough Church of England primary school together before the election, it was clear that she was passionate about education and raising standards. I know that there is a widely held view in Loughborough that changing school at 14 can have a negative impact on GCSE results at 16. Improving standards must be the driver for local restructuring. I know that that is my hon. Friend’s rationale for seeking to change the system in Loughborough. Lord Hill has a meeting with her and some teachers from Loughborough tomorrow—I mean literally tomorrow, not the parliamentary tomorrow—and I know that he will be keen to explore these issues in as helpful a way as possible.

[Richard Harrington (Watford) (Con)]

12. What steps he plans to take to strengthen the teaching of core subjects in schools.

[The Minister of State, Department for Education (Mr Nick Gibb)]

The White Paper “The Importance of Teaching” emphasises the importance of high quality teaching in the core subjects. We are introducing the English baccalaureate, which recognises achievement in the core subjects of English, maths, science, a humanity and a foreign language. It is intended to ensure that children receive a broad and balanced education, with time in the curriculum for vocational and creative subjects. We are taking steps to strengthen the teaching of reading through the use of systematic synthetic phonics.

[Richard Harrington]

I am sure the Minister is aware that in 2009, fewer than one in 25 children who were on free school meals took chemistry or physics, one in five took history, and fewer than 15% took geography or French. What plans does he have to ensure that children from poorer backgrounds get access to a proper academic education?