Local Authorities: Budgets

Debate between Lord Lexden and Baroness Penn

Tuesday 19th September 2023 Lords Chamber

[Baroness Penn (Con)]

My Lords, I just set out the position on broader reform to the funding system for local government. The Government recognise the pressures that local authorities are facing. At the spending review 2021, the Government confirmed that councils in England would receive £4.8 billion of new grant funding between 2022-23 and 2024-25 to meet pressures in social care and other services. We also recognised in the Autumn Statement last year that the position on inflation had changed the position for councils, and set out additional funding to respond to that.

[Lord Lexden (Con)]

My Lords, is it not tragic that Birmingham—once the jewel of local government, thanks to Joseph Chamberlain and his son Neville, the reforming lord mayor in the early 20th century—should have been reduced to its present pass? What is to be done about this great council? Should it be split up? Its present position is truly tragic.

[Baroness Penn (Con)]

My Lords, as we speak, my right honourable friend the Secretary of State for Levelling Up is giving a Statement to the House of Commons on action to be taken on Birmingham City Council. It is the Government’s intention to appoint commissioners in that instance, but there will be a period of consultation, I believe, before that is brought forth.

Inheritance Tax: Cohabiting Siblings

Debate between Lord Lexden and Baroness Penn

Tuesday 20th June 2023 Lords Chamber

[Lord Lexden]

To ask His Majesty’s Government what plans they have, if any, to make transfers of property between long-term cohabiting siblings exempt from inheritance tax.

[The Parliamentary Secretary, HM Treasury (Baroness Penn) (Con)]

My Lords, the long-standing inheritance tax assumption for wealth transfers between spouses and civil partners reflects the formal legal obligations that marriages and civil partnerships necessarily entail. While the Government understand the issue, there are no plans to exempt transfers of property between long-term cohabiting siblings.

[Lord Lexden (Con)]

My Lords, the Government say that two people who have shared a jointly owned home for years must be in a legal relationship if inheritance tax is to be deferred when they are parted by death. I remind the Government that they blocked my Private Member’s Bill to open up civil partnerships to siblings after its Second Reading, where it gained wide support across the House. This would have enabled siblings to establish legal relationships and solve the problem. Why on earth should the postponement of tax on the death of the first of two people united in a loving association for years require sexual activity between them? Why should the survivor of a chaste relationship have to face the agony of selling the family home on the death of a loved partner to pay an inheritance tax bill? Have this Government no compassion?

[Baroness Penn (Con)]

My Lords, it is important to set this Question in context. Each individual has a nil rate band of £325,000. Two cohabiting siblings who jointly own a house may have an inheritance tax liability only when the value of the house exceeds £650,000—well in excess of both the average UK house price and the average London house price. There are also circumstances in which inheritance tax can be paid over a period of time, giving the beneficiaries time to adjust to changed circumstances. That facility would enable people in those circumstances to remain in their home, which I believe is the concern at the heart of my noble friend’s Question.

Devolved Budget for Wales: Inflation

Debate between Lord Lexden and Baroness Penn

Wednesday 15th March 2023 Lords Chamber

[Lord Lexden (Con)]

My Lords, is it not extremely difficult to secure throughout our country the high level of prosperity that we would all like to see? My noble colleagues from Northern Ireland will testify to that.

[Baroness Penn (Con)]

It is a difficult thing, but one that this Government are committed to. That is why I am so pleased to see that as a result of the measures announced in this Budget today, we have seen the OBR adjust its growth forecasts upwards by the largest amount based on supply-side reforms since its establishment in 2010.

Ambulance Services and National Heatwave Emergency

Debate between Lord Lexden and Baroness Penn

Wednesday 13th July 2022 Lords Chamber

[Baroness Penn (Con)]

There are 10 ambulance service trusts and they have differing levels of performance. I acknowledge that across all those 10 trusts there is pressure on the system in rural and urban areas. Our focus is to provide specific support to those trusts that are struggling the most.

[Lord Lexden (Con)]

What have been the results of Mr Johnson’s promises to build new hospitals?

[Baroness Penn (Con)]

There is work under way in the NHS and the Department for Health and Social Care to deliver on that pledge.

Investments: Environmental, Social and Governance Criteria

Debate between Lord Lexden and Baroness Penn

Wednesday 2nd March 2022 Lords Chamber

[Baroness Penn (Con)]

My Lords, I do not think we will be taking quite that approach to a legal definition of greenwashing. We will, through the green taxonomy, provide a clear way by which firms are transparent and what counts towards their sustainability claims, accompanied by regulation from the FCA on the consumer-facing label, but we will also look at whether firms that provide ESG data and ratings should be included in regulation.

[Lord Lexden (Con)]

The noble Baroness who asked the Question referred to the case for fresh legislation in this area. Do the Government believe that further legislation is required; and, if so, when will it be introduced?

[Baroness Penn (Con)]

My Lords, I believe much can be done under existing powers in FCA regulation and the UK’s green taxonomy, but if any legislation is needed, it will be put forward in the usual way.

Skills and Post-16 Education Bill [HL]

Debate between Lord Lexden and Baroness Penn

Committee stage
Thursday 15th July 2021 Lords Chamber

[Baroness Penn (Con)]

My Lords, now that I have de-masked myself, I will first make two remarks to the noble Lord, Lord Watson. In my enthusiasm to start my speaking role on this Bill, I did not thank him for his kind words in welcoming me to the Dispatch Box. I also acknowledge completely his point about the timing of various announcements and the need to ensure that noble Lords have as much information as possible to help them to scrutinise proposals for this Bill. We will endeavour to do our best in that regard.

I am grateful, too, to the noble Lord, Lord Addington, for giving us, on behalf of his noble friend, the opportunity to discuss apprenticeships, which are at the heart of the Government’s skills ambitions. As we recover from the impact of Covid-19, apprenticeships are more important than ever in helping businesses to recruit the right people and to develop the skills that they need.

I hope that noble Lords will allow me a little time to outline a few principles of the apprenticeship levy and its funding, as that will respond to some of the points made in this debate. The funds available to levy-paying employers through their apprenticeship service accounts can be used for apprenticeship training or assessment in their own businesses, or transferred to other employers. They are not the same, however, as the Department for Education’s annual apprenticeships budget.

While those unspent funds, therefore, expire from the employer’s accounts after two years, the broader funding contributes to the budget set by the Department for Education, according to its rules, and funds other costs associated with apprenticeships. This includes training and assessment for apprenticeships for employers that do and do not pay the levy, the cost of English and maths tuition and additional payments to support young apprenticeships—as I heard from noble Lords, those are a priority—and those with additional learning support needs.

On Amendment 39, I reassure noble Lords that we keep apprenticeship funding policy under review. I say to the noble Lords, Lord Addington and Lord Aberdare, among others, that a key principle of the apprenticeship levy is that we should only pay for apprenticeship training and assessment costs from the apprenticeship budget, as apprenticeships deliver a significant return on investment from the public purse, rather than using the levy to fund wider skills training needs.

We have an ambitious agenda for apprenticeships and we have made huge strides forward with the apprenticeship reforms, but we cannot and will not stop here. We want to grow the programme, drive up quality and improve apprenticeships, to the benefit of all employers and ultimately the economy, through increased skills and jobs. While widening the scope of the apprenticeships budget to pay for other costs or skills training, even for a time-limited period, would not be in line with the Government’s aims for the programme, I hope that noble Lords who have raised questions about how it currently operates will be reassured by some of the improvements that we are making to make it easier for employers to use and to encourage take-up by potential apprentices.

We continue to listen to employers and to adapt apprenticeships to better meet their needs. Work is under way on a package of improvements that respond directly to employer feedback, so that employers can make better use of their apprenticeship funds.

First, we are introducing a new service that will make it easier for employers that pay the apprenticeship levy to transfer funds in their accounts to other employers, including smaller employers. Large employers will be able to pledge funds for transfer and other employers will be able to receive these funds, so that both will benefit from those transfers. In response to a question from, I think, my noble friend Lady Neville-Rolfe, the lead employer that is transferring those funds will not retain any responsibility for the provision of training after the transfer. It is not an additional burden on them.

Secondly, we are helping employers to choose more innovative training models, such as front-loaded training and accelerated apprenticeships, which will help apprentices with relevant skills and experience to complete their training more quickly. Finally, we are supporting sectors of the economy that have more flexible working patterns, such as the creative industries. We will shortly launch a £7 million fund to help organisations in England to set up and expand new flexi-job apprenticeship schemes.

The noble Lord, Lord Aberdare, asked about the funding available for apprenticeships. In 2021-22, the funding available for investment in apprenticeships in England is almost £2.5 billion. That is double what was spent in 2010-11. We have increased the investment available for apprenticeships.

My noble friend Lady Neville-Rolfe and the noble Lord, Lord Addington, asked about the aims of the apprenticeships programme and its direction of travel. Our reforms to the programme have all been focused on making them longer and better, with more off-the-job training and proper assessment at the end. Many pre-reform apprenticeships were of low quality and involved little or no training. That is what we have aimed to change.

We know, however, that there is more work to be done and, in addition to the reforms that I have mentioned that will make it easier for employers to take up their levy funds, we have introduced new incentives for those employers, particularly during the pandemic, to take on new apprentices. Until the end of March those incentive payments were £1,500 for those aged 25 and over and £2,000 for those under 25—71,140 incentive payments were paid up to that date. We have increased the incentive to £3,000 and that remains in place until 30 September.

I hope that noble Lords take some reassurance from what I have outlined that we remain committed to the apprenticeship programme. While we do not agree with diverting apprenticeship funding to other forms of skills training, we acknowledge the need to continue to review and adapt the apprenticeship programme so that there is better take-up and it works better for employers and those who will potentially benefit from it. I therefore hope that the noble Lord, Lord Addington, feels able to withdraw his amendment.

[The Deputy Chairman of Committees (Lord Lexden) (Con)]

I have received no requests to speak after the Minister so I call the noble Lord, Lord Addington, to conclude the debate on this amendment.

--- Later in debate ---

[Baroness Penn (Con)]

My Lords, Clause 5 places a duty on governing bodies of institutions within the further education sector to periodically review their provision against local needs and to consider changes that might improve the way that those needs are met. Regular reviews of provision should be a key part of strategic curriculum planning within every college, as the noble Lord, Lord Watson, pointed out. As well as reflecting the priorities set out in any local skills improvement plan, the reviews should cover the whole of the education and training offer and the needs of both current and future learners.

I reassure the noble Lord, Lord Watson, that this clause is not introduced with the intention of second-guessing practices that already take place within local providers or their value. But by placing a legal duty requiring reviews to be published, Clause 5 strengthens transparency and accountability around decisions on provision that are vital for local communities.

I turn first to Amendment 41, from the noble Lord, Lord Addington. I welcome the opportunity to respond to the points he made on clarifying the timing of reviews, including their frequency and regularity. In the draft statutory guidance—which we have been able to produce for this clause and which supports the new duty proposed in Clause 5—we set out the principle that reviews should be timely and undertaken at least once every three years. The term “from time to time” is often used in legislation, and can have the advantage that it can accommodate reviews that may, for very good reason, take place at different intervals and therefore could not, strictly speaking, be described as “regular”. The noble Lord, Lord Addington, himself asked whether you could have more frequent reviews or a review at a different point, perhaps in response to changing local needs or circumstances, and so “from time to time” is aimed at allowing for such circumstances.

I hope that there is a broad level of agreement across the Committee around the importance of reviews taking place on a timely basis, and that my explanation of the Government’s approach and the contents of the draft statutory guidance provide some reassurance that the proposals in Clause 5 will achieve that goal.

On Amendments 43 to 46 in the name of my noble friend Lord Lingfield, I completely agree with his remarks on the importance of provision for students with special educational needs, including those with an education, health and care plan. Provision for these students is an integral part of the education and training provided by an institution. Again, the draft statutory guidance published by the department makes clear that the review should include consideration of the needs of learners with SEND, including those with education, health and care plans, when governing bodies are considering the needs of different groups of learners locally. The existing statutory obligations on colleges relating to SEND, including the public sector equality duty, are a key reference point for the governing body when carrying out the review.

Colleges and other FE sector institutions already do fantastic work for students with SEND, and that provision is an integral part of the education and training that colleges offer. For that reason, we consider it essential that it is considered as part of any review of their wider provision, rather than through a separate or parallel exercise. To re-emphasise, in reviewing the college’s education and training provision under Clause 5, the governing body must do this in a way that is consistent with its existing statutory obligations in relation to SEND, and that is underlined in the draft statutory guidance supporting the review.

I hope that I have provided some clarity to the noble Lord, Lord Addington, on the use of the term “from time to time”, and he will feel able to withdraw his amendment, and sufficient reassurance to my noble friend Lord Lingfield that he will not move his amendments when they are reached.

[The Deputy Chairman of Committees (Lord Lexden) (Con)]

I have received one request to speak after the Minister from the noble Lord, Lord Lingfield.

[Lord Lingfield (Con)]

My Lords, I am grateful to my noble friend for her reply. I understand the Government’s views. I particularly thank my noble friend and kinsman Lord Addington for his support. He is one of the House’s experts in the area of special needs and always worth listening to. However, it is a sad fact that not all further education colleges and suppliers of further education are up to the level of the very best ones, and a regular review, clearly required by the Act instead of being hidden in guidance and regulation, would be an important incentive to those that are mediocre to improve their offering to these vulnerable young people. I hope that my noble friend might think again, and I hope to return to this at the next stage of the Bill, but I shall not press my amendments.

[Baroness Penn (Con)]

My Lords, I think we are in agreement on the importance of special educational needs being included in the reviews undertaken by providers. The noble Lord, Lord Watson, asked what the point of the provision of this clause is. The regular production and publication of these reviews might enable noble Lords and others to hold colleges more easily to account on how they have taken on that guidance, which is clear that the special educational needs of students have to be taken into account, and how they have taken that on in the conduct of their own reviews. I am sure that many colleges do an excellent job in that respect, but the additional transparency of having these reviews produced and published on a regular basis will aid in that job.

[The Deputy Chairman of Committees (Lord Lexden) (Con)]

My Lords, I have now received a second request to speak after the Minister from the noble Lord, Lord Young of Norwood Green. No? I call the noble Lord, Lord Addington, to conclude this debate.

Inheritance Tax: Cohabiting Siblings

Debate between Lord Lexden and Baroness Penn

Wednesday 10th February 2021 Lords Chamber

[Lord Lexden]

To ask Her Majesty’s Government what plans they have to make transfers of property between long-term, cohabiting siblings exempt from inheritance tax.

[Baroness Penn (Con)]

My Lords, while the Government are understanding of the issue, there are no plans to exempt transfers of property between long-term cohabiting siblings. The inheritance tax spouse exemption is long-standing and reflects the formal legal obligations that marriage and civil partnership relationships necessarily entail. Extending that would be precedent-setting, as no analogous legal status exists between cohabiting siblings.

[Lord Lexden (Con)]

My Lords, can there be any doubt that siblings who share their lives in jointly owned homes represent strong, stable families? It is a fundamental principle of conservatism to support all families. Why therefore do the Government continue to deprive these families of the protections that they deserve, no less than married couples and civil partners, to ensure, among other things, that no bereaved sibling has to face the agony of selling the family home on the death of a loved partner in order to pay an inheritance tax bill?

[Baroness Penn (Con)]

My Lords, of course the Government recognise the strong family ties that my noble friend refers to. However, that is a different matter from the formal legal obligations that marriage and civil partnership relationships entail. I also remind noble Lords of the context that 95% of estates pay no inheritance tax at all.

Medicines and Medical Devices Bill

Debate between Lord Lexden and Baroness Penn

Committee stage & Committee: 5th sitting (Hansard) & Committee: 5th sitting (Hansard): House of Lords
Wednesday 11th November 2020 Grand Committee

[Baroness Penn (Con)]

My Lords, all the amendments in this group deal with the important matter of forward-thinking regulation—regulation that evolves as technology evolves. I say to the noble Baroness, Lady Thornton, that all the questions raised in this debate are very pertinent and are pro-innovation, not anti-innovation questions, concerned with ensuring that we can regulate this area properly.

As my noble friend the Minister said in previous communication to the noble Lord, Lord Freyberg, artificial intelligence is already in use in medical device technology and is already regulated—for example, Babylon’s mobile application Healthcheck is software that provides a general health assessment to users. That application is registered as class 1 medical device by the MHRA. We are also working on equipping our regulator for these products. The MHRA secured £740,000 from the Regulators’ Pioneer Fund to work with NHS Digital on developing a pilot in order to test and validate algorithms and other AI used in medical devices. There are other works in train to get the benefit of artificial intelligence in the health service. The Artificial Intelligence Award is run by the Accelerated Access Collaborative in partnership with NHSX and the National Institute for Health Research. It is making £140 million available to accelerate the testing and evaluation of the most promising AI technologies that meet the strategic aims set out in the NHS Long Term Plan.

I recognise that the intention of Amendments 83, 112 and 113 is to address the potential to cause harm to patients without appropriate regulation of these technologies. I can reassure noble Lords that software used for the application of medical devices falls within the definition of a medical device under the EU medical device directive, transposed into UK law through the Medical Devices Regulations 2002. Artificial intelligence and algorithms are encompassed within the term “software” where they have a medical purpose, and I can reassure the noble Lord, Lord Freyberg, that this covers static and dynamic algorithms.

In addition, within 12 months of this Bill gaining Royal Assent, we will start to develop new medical device regulations. The development of these regulations will include a full consultation on any changes proposed. I can commit here that the consultation will conclude within 12 months and will include the definition of a medical device, with particular reference to algorithms and methodologies used for the interpretation of data and associated technical architecture used within medical devices. This process will allow members of the public, patients and industry bodies—as well as perhaps noble Lords in this Committee—to help shape the future of regulation in the UK and the terminology that we use to describe what is captured by those regulations.

The amendments are accordingly unnecessary, as the outcome sought will be achieved under the umbrella of the wider-scale review of medical devices regulation in the UK, which will take place during a similar window as that sought by the amendment and will address the specific questions that it raises. So I hope that I have reassured the noble Lord, Lord Freyberg, that the existing definition covering both dynamic and static algorithms is sufficient and, if I have not, that he will take satisfaction from the Government’s commitment that, within 12 months, we will have concluded a consultation—to which I hope the noble Lord will contribute—that will include the definition of a medical device and specific reference to algorithms and methodologies used for interpretation of data.

This is an incredibly important debate. This is an emerging area of technology and, while we are reassured that the current regulations capture what they need to, we also need to look to the future, which is what the consultation can do. I hope that the noble Lord will feel able to withdraw his amendment.

[The Deputy Chairman of Committees (Lord Lexden) (Con)]

I have received a request to speak after the Minister from the noble Baroness, Lady Thornton. I now call the noble Baroness.

Interest Rates

Debate between Lord Lexden and Baroness Penn

Wednesday 23rd September 2020 Lords Chamber

[Baroness Penn (Con)]

The Government will continue to consider all the ways that they can to encourage saving. I am happy to assure both of my noble friends that I will take the specific idea of targeting toward pensioners back to Her Majesty’s Treasury.

[The Deputy Speaker (Lord Lexden) (Con)]

My Lords, all supplementary questions have now been asked.

Covid-19: Economic Costs

Debate between Lord Lexden and Baroness Penn

Tuesday 28th July 2020 Lords Chamber

[Baroness Penn]

My Lords, the noble Lord is right that the UK has been hard hit by this virus, but I point out to him that that is also why we have one of the most generous fiscal responses in the world, at over £160 billion. The IMF estimates that UK tax and spending support in response to Covid has been greater than that in France, Spain or Italy.

[The Deputy Speaker (Lord Lexden) (Con)]

My Lords, the time allowed for this Question has now elapsed.