Higher Education and Research Bill
Debate between Lord Johnson of Marylebone and Lindsay HoyleMonday 21st November 2016
(8 years, 1 month ago)
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Joseph Johnson
The estimation of the RAB charge is still broadly in that ballpark, with the current estimate being between 20% and 25%, so it is not substantially different.
On new clause 2, the hon. Member for Ilford North (Wes Streeting) suggested that an independent panel should approve any changes to terms and conditions for student loans. However, the key terms and conditions governing repayment of the loan are set out in regulations made under section 22 of the Teaching and Higher Education Act 1998. The repayment regulations are subject to scrutiny under the negative procedure, which allows Parliament to call a debate on any amendments. It is right that Parliament, rather than an unelected panel, should continue to have the final say on the loan terms and conditions.
Industrial Strategy
Debate between Lord Johnson of Marylebone and Lindsay Hoyle(8 years, 2 months ago)
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Mr Baker
I hope that the Minister will join me in celebrating this country’s excellence in not only manufacturing, but research in Formula 1. We have a number of teams in the UK. We are also the world’s second biggest aerospace manufacturer after the mighty United States. We do tremendously well, and Opposition Members are far too downbeat.
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. I welcome interventions, but when Members see the speaking time drop down to five minutes, they will understand, won’t they?
Joseph Johnson
Another globally competitive sector is satellite technology, with a quarter of all satellites launched into space currently being made in Stevenage.
Science and advanced manufacturing are, of course, not the only examples of excellence. We can point to other parts of our economy such as financial services, accountancy, law, consulting and creative industries that also set the global standard. We have worked hard over the years to make Britain one of the best places in the world to start and grow a business. We are creating a business environment that supports growth, by encouraging long-term investment and a dynamic economy with open and competitive markets. That has included backing business by cutting corporation tax to 17% by 2020, slashing red tape by a further £10 billion and making major investment in the UK’s research infrastructure.
We have a strong base to build from. The question is how we can make the most of it, but we are not starting from scratch. Previous industrial strategies have seen success in particular sectors. Our challenge now is both to build on our competitive advantage and to identify and support the sectors that can drive future growth. This is not about picking winners, which hon. Members have urged against, nor about propping up failing industry or bringing old companies back from the dead. We must be open and ready for new competitors and open to welcome new disruptive industries that may not exist anywhere today but that will shape our future lives. It is about identifying industries that are of strategic value to our economy and supporting and promoting them through policies for trade, tax, infrastructure, skills, training and R and D.
It is hugely important that we take a local approach to strategy. Governments are fond of quoting national figures—I have already quoted some myself—on economic growth, productivity and employment, but the truth is that economic growth does not exist in the abstract; it happens in particular places when a business is set up, takes on more people or expands its production. The places in which businesses operate are a big part of determining how well they can do. We must recognise the strengths of areas across the country, including the midlands engine and the northern powerhouse. We have a strong framework in place to do that, such as through local enterprise partnerships or, as mentioned by my hon. Friend the Member for Wimbledon (Stephen Hammond), our network of universities and our enterprise zones.
Through our science and innovation audits across the UK, led by local areas, we are mapping research and innovation strengths and infrastructure to identify and build on areas of greatest potential in every region. Such strengths are too often overlooked outside the golden triangle of London, Cambridge and Oxford. Through our catapults, the sectoral centres of excellence based across the country, we are supporting innovation where UK businesses have the potential to be world leading and to address local disparities in productivity.
Helping all parts of the country contribute to national success is key to our planning and a cornerstone of our approach. What is needed in each place is different and our strategy must reflect that. That is why many of the policies and decisions that form our industrial strategy will be not about particular industries or sectors, but cross-cutting. For us to succeed in the future, we need to have the right infrastructure—roads, rail, broadband and mobile—to connect businesses to their workforce. New infrastructure such as Crossrail is about to open, but we still have bottlenecked roads, overcrowded trains, and broadband and mobile coverage that needs upgrading.
We also need to upgrade our skills base. We need a rising generation of young people who are not only better educated than those of our competitors and their predecessors, but also better trained.
On schools, we have announced £67 million for the next five years to recruit and train an extra 2,500 maths and physics teachers, and to upskill 15,000 existing maths and physics teachers. We need to make sure that vocational education, especially in engineering and technology, plays a much more prominent role in our country than it has for many years now. We also need a modern system of corporate governance, too. The Prime Minister has also already made it clear that we will look at that area, including further reforms on executive pay, as part of the Government’s work to build an economy that works fairly for everyone, not just the privileged few.
Education, Skills and Training
Debate between Lord Johnson of Marylebone and Lindsay Hoyle(8 years, 6 months ago)
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Jesse Norman
In that spirit, may I congratulate my hon. Friend on his great leadership on the new university project in Herefordshire, which is now under way? The aim is not only to transform higher education in my county and to create extraordinary economic potential, but to innovate across the country as a whole by tying together academic and vocational education, and by using resources to create greater employability. That is being done with the support of Warwick University and Olin College in America. Does my hon. Friend share my view that, in order to make that vision happen in cold spots, it is really important not just for central Government to give a lead, as he has done in the White Paper, but for local government grants, central Government guarantees and private money to come together as single whole?
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order, I think we will have the Minister. Save your speech for later.
Joseph Johnson
We are delighted to support that great new venture—a new model in technology and engineering—in Herefordshire. It addresses several long-standing problems, including skills shortages in engineering. Herefordshire is an HE cold spot. We welcome the venture and its collaboration with world-leading institutions in the United States, such as Olin, and we want to see more such institutions. I applaud my hon. Friends the Members for Hereford and South Herefordshire (Jesse Norman) and for North Herefordshire (Bill Wiggin), who has left the Chamber, for their tireless work in championing the new institution.
England’s universities rank among the best in the world. They generate the knowledge, skills and attitudes that fuel our economy and sustain our open society. The world of higher education, however, has changed fundamentally since the last major legislative reforms of 1992 and our system needs to meet new challenges.
A rapid interest in jobs requiring higher-level skills has created a worldwide demand for more graduate employees and for greater diversity of higher education provision. Yet this country is still well below the OECD average for university attendance. We send proportionately fewer people to university to study at undergraduate level than our main competitors: first-time entrants in 2013 were just 48% in the UK versus 55% for the OECD average. We also lag behind when it comes to further study: first-time entry rates to masters courses are only 15% versus 20% for the OECD average.
We are also far from meeting our economy’s needs for graduate-level skills. Between now and 2022, more than half of job vacancies will be in occupations most likely to employ graduates. We have removed the cap on student numbers, but we need to remove barriers to entry for high-quality new entrants who will help to meet the demand for skilled graduates.
Eurozone Financial Assistance
Debate between Lord Johnson of Marylebone and Lindsay Hoyle
Joseph Johnson
My hon. Friend is perhaps right to caution me. It never pays to be too optimistic.
More importantly, the coalition Government, who came into power in May 2010, deserve to be congratulated not only on limiting our exposure to the temporary funds—we are on the hook for just one, not both of them—but on successfully capping our exposure. We have been kept out of the €440 billion European financial stabilisation facility, as well as what will be the permanent successor vehicle, the European stability mechanism, which, as mentioned, is due to come into existence in 2013.
That said, we would be wrong to kid ourselves that Britain can shield itself completely from the affairs of the eurozone, and I would suggest that Schadenfreude, in the Chamber or elsewhere, at the turmoil in the euro fringe might be short-sighted. First, our banks remain fragile. People who read the Financial Times will know that 14 British banks and building societies were this morning downgraded by Moody’s, and there were particularly negative outlooks for Barclays and HSBC. The UK banking sector’s exposure to the so-called PIIG economies—Portugal, Ireland, Italy and Greece—alone amounts to about £211 billion, which is the equivalent of about 4.7% of UK bank assets, according to Capital Economics. UK banks can ill afford fresh write-downs that would force them to raise expensive new funds at a difficult time in the capital markets, and a further leg-down in the eurozone financial crisis would certainly not help the Government in their laudable efforts, under Project Merlin, to push the banks to lend more and at reasonable terms to capital-starved businesses in the UK.
The second transmission channel of pain in the eurozone will come in the form of reduced lending to UK consumers and businesses by eurozone periphery banks located in the UK. Irish banks account for about 3% of household loans in the UK, and about 7% of corporate loans. Spanish banks play an even more important role. Through Santander, which owns Abbey, Alliance & Leicester and Bradford & Bingley, Spain accounts for 14% of household loans in the UK. If troubles at home force these eurozone banks to rein back their lending, especially overseas, credit conditions in the UK could clearly start to worsen again. We should think hard about that before expressing any Schadenfreude at what is happening on the continent.
Furthermore, distress will be felt at home through the trade channel. At a time when domestic sources of growth are under pressure and few and far between, the UK’s trade links with continental Europe are of pivotal importance. Although Spain and Portugal might be less significant as trading partners than Ireland, the PIIG economies together account for 14% of UK exports, compared with Germany’s 9% and the 16% of UK exports that go to Asia. A wave of defaults, or at the very least a considerable weakening of the euro, would not only hit demand in these countries, but damage UK export competitiveness—a linchpin of the Government’s economic strategy.
The Government are right to limit our financial exposure to future bail-out mechanisms, and need to be congratulated on having done so successfully, but it should go without saying that we still have much at stake in the success of these future bail-out mechanisms. We cannot wash our hands of them. The health of the UK banking system, the extent to which the UK economy is dependent on credit extended to UK companies by eurozone banks and the UK’s own need to earn a living from exports make it abundantly in the UK’s interests to wish our European partners every success in tackling the crisis through future eurozone-only arrangements. Anyone taking pleasure in the discomfort of our European partners might be in for a nasty surprise.
Royal Assent
Mr Deputy Speaker (Mr Lindsay Hoyle)
I have to notify the House, in accordance with the Royal Assent Act 1967, that Her Majesty has signified Her Royal Assent to the following Measures:
Care of Cathedrals Measure 2011
Ecclesiastical Fees (Amendment) Measure 2011
Mission and Pastoral Measure 2011.