(2 years, 7 months ago)
Commons ChamberI am afraid that I now have to put a three-minute time limit on.
I am sorry, Madam Deputy Speaker. We need help and we need help now.
I will try not to cut the time limit, but I may have to at some point, so I encourage people to stick to their three minutes and, if they take interventions, to still stick to three minutes.
Order. To get everybody in, I am afraid that I will have to reduce the limit to two minutes after the next speaker.
The covid pandemic has presented unprecedented challenges for businesses in every part of the country and in virtually every sector of the economy, but the Government have met them with unprecedented levels of support. While the last Labour Government bailed out the banks while dole queues doubled, this Government have provided support—whether through the furlough, grants, loans or business rates support—on a scale that I think few could have anticipated from any Government of any political colour before the pandemic. Of course, things have still been extremely difficult—many businesses have struggled from one week to the next, and sadly some have not been able to survive this long—but for many, many businesses, the support provided has made the difference between survival and going to the wall.
Every part of the economy has been affected and many businesses have suffered, but some have been hit harder than others, particularly the hospitality sector and the businesses that rely on its success. It was a brutal December for the sector; December usually accounts for about a quarter of hospitality’s trade for the year, but we have now had two Decembers in a row that were well below normal trading levels. The support announced before Christmas has allowed most hospitality businesses that qualified to get through the Christmas period into the new year and stand a chance of surviving, but we also have to look at the supply chains.
There are businesses that may not be immediately within the hospitality sector, but that rely on it. Brewers, catering, event management and, for that matter, hair and beauty rely on large events. We need to make sure that local authorities are prioritising businesses like those with the discretionary support that is available, and I would encourage Ministers to make it clear in guidance for discretionary support that those businesses are precisely the kind of businesses that that support is aimed at.
But of course what businesses need more than anything is to be able to do what they do best—provide the goods and the services that consumers or other businesses want to buy—to get back to some kind of normal. The last thing we need would be to have taken the advice of some of the Labour Members before Christmas, and had further restrictions sooner and for longer, or endless furloughs.
(2 years, 8 months ago)
Commons ChamberBefore this statement, I wish to make a short statement about the sub judice resolution. Mr Speaker has been advised that there are active legal proceedings in the Court of Appeal in respect of the quashing of convictions of postmasters that relied on evidence from the Post Office Horizon IT system. Mr Speaker is exercising the discretion given to the Chair in respect of the resolution on matters sub judice to allow full reference to those proceedings as they concern issues of national importance.
As long as it is related to the previous statement.
My right hon. Friend—it has been a busy week—did, of course, play a major role in the postmasters’ campaign. He was quite right to object to my failure to mention him, and I would like to apologise to him for that.
That is not entirely a point of order or a matter for the Chair, but the hon. Gentleman has put his thanks and his apology on the record.
(2 years, 8 months ago)
Commons ChamberI beg to move, That the clause be read a Second time.
With this it will be convenient to discuss the following:
New clause 2—Annual report on climate change impacts—
‘(1) The Secretary of State must once every 12 months lay a report before Parliament setting out the impact of subsidies granted in the preceding 12 months on the environment and climate change.
(2) Any report under subsection (1) must include an assessment of the impact of subsidies granted in the preceding 12 months on the UK’s ability to achieve net-zero emissions by 2050.
(3) The first report must be laid before Parliament within 12 months of this Act being passed.’
This new clause would require the Secretary of State to lay an annual report before parliament detailing the climate change impacts of subsidies granted that year.
New clause 3—Post-award investigations—
‘(1) The CMA may conduct an investigation in relation to a subsidy that has been granted or a subsidy scheme that has been made.
(2) A decision under subsection (1) may be made in relation to any subsidy or subsidy scheme in respect of which the CMA considers—
(a) that there has or may have been a failure to comply with the requirements of Chapters 1 and 2 of Part 2, or
(b) that there has or may have been a failure to comply with the transparency obligations set out in Chapter 3 of Part 2.
(3) Where the CMA makes a decision to investigate a subsidy or scheme under subsection (1), it must direct the public authority to provide it with—
(a) any assessment carried out by the public authority as to whether the financial assistance fell within the meaning of “subsidy” or “subsidy scheme” for the purposes of this Act, and the reasons for that conclusion,
(b) any assessment carried out by the public authority as to whether the financial assistance if assessed to constitute a subsidy or subsidy scheme would comply with the requirements of Chapter 1 and 2 of Part 2 and the reasons for that conclusion,
(c) any evidence relevant to those assessments,
(d) in a case where such assessments were not provided, the reasons for the assessments not being provided,
(e) any information that the public authority failed to enter in the subsidy database in accordance with Chapter 3 of Part 2, and
(f) such other information as is specified in regulations under section 60(8)(a).
(4) Where the CMA decides to conduct an investigation under subsection (1), the direction given under subsection (3) must be made before the end of 20 working days beginning with the day on which the subsidy is given or the scheme is made.
(5) The CMA must send a copy of the direction given under subsection (3) to the public authority and the Secretary of State.
(6) The public authority must provide to the CMA the information required under subsection (3) before the end of the information period as defined in section 60(7).’
This new clause provides the CMA with the power to conduct a post-award investigation where the public authority has or may have failed to comply with its requirements.
Amendment 10, in clause 10, page 6, line 31, leave out paragraph (a) and insert—
‘(a) is made by—
(i) a Minister of the Crown,
(ii) the Welsh Ministers,
(iii) the Scottish Ministers, or
(iv) a Northern Ireland department; and’.
This amendment allows devolved administrations to make streamlined subsidy schemes.
Amendment 18, page 6, line 33, at end insert—
‘(4A) A streamlined subsidy scheme may be made, in particular, to support areas of relative economic deprivation.’
This amendment would allow for streamlined subsidy schemes to be made for the purposes of supporting areas of deprivation.
Amendment 19, in clause 11, page 7, line 9, at end insert—
‘(4) Before making regulations under this section, the Secretary of State must seek the consent of the Scottish Ministers, the Welsh Ministers and the Department for the Economy in Northern Ireland.
(5) If consent to the making of the regulations is not given by any of those authorities within the period of one month beginning with the day on which it is sought from that authority, the Secretary of State may make the regulations without consent.
(6) If regulations are made in reliance on subsection (5), the Secretary of State must make a statement to the House of Commons explaining why the Secretary of State decided to make the regulations without the consent of the authority or authorities concerned.’
This amendment would require the Secretary of State to seek the consent of the Devolved Administrations before making regulations under this section. Where such consent is not given within one month, the Secretary of State may make the regulations without that consent, but must make a statement to the House of Commons explaining their decision.
Amendment 20, in clause 32, page 17, line 10, at end insert—
‘(c) the subsidy database is subject to routine audit to verify the accuracy and completeness of entries.’
This amendment requires the Secretary of State to ensure that the database is subject to routine audit.
Amendment 1, in clause 33, page 17, line 21, leave out “£500,000” and insert “£500”.
This amendment would reduce the threshold for entering subsidies into the subsidy database from £500,000 to £500.
Amendment 2, page 17, line 24, leave out “one year” and insert “one month”.
This amendment would require subsidies or schemes to be entered in the database within one month of being made, rather than one year, if given in the form of a tax measure.
Amendment 13, page 17, line 24, leave out paragraph (a) and insert—
‘(a) if given in the form of a tax measure, an entry with a provisional tax deduction value must be entered within one month, and a final value entered within one month of the date of the tax declaration, or’.
This ensures that tax measure subsidies are entered in the subsidy database within one month.
Amendment 3, page 17, line 26, leave out “six months” and insert “one month”.
This amendment would require subsidies or schemes to be entered in the database within one month of being made, rather than six months, if given in any form other than a tax measure.
Amendment 4, page 17, line 33, leave out “one year” and insert “one month”.
See explanatory statement for Amendment 2.
Amendment 5, page 17, line 35, leave out “six months” and insert “one month”.
See explanatory statement for Amendment 3.
Amendment 6, in clause 34, page 18, line 27, at end insert—
“(j) the date the subsidy or scheme was entered onto the database.”
This amendment would require the date a subsidy or scheme was entered onto the database to be included in the information public authorities are required to enter into the database.
Amendment 14, in clause 36, page 19, line 17, after “requirements” insert
“with the exception of duties under section 33,”.
This amendment requires that subsidies under the minimal financial assistance threshold are entered in the subsidy control database.
Amendment 7, page 20, line 4, at end insert—
‘(7) In this section, the reference to the subsidy control requirements does not include the requirements as to transparency in Chapter 3 of Part 2.’
This amendment requires that “minimal financial assistance” subsidies are not exempt from the database transparency requirements, while remaining exempt from other subsidy control requirements.
Amendment 21, in clause 41, page 23, line 15, leave out “£14,500,000” and insert “£500”.
This amendment would make section 33 applicable to SPEI subsidies worth more than £500.
Amendment 22, page 23, line 16, leave out subsection (b).
This amendment would make section 33 applicable to SPEI subsidies worth more than £500.
Amendment 23, in clause 55, page 30, line 40, after “State” insert
‘, the Scottish Ministers, the Welsh Ministers and the Department for the Economy in Northern Ireland’.
This amendment extends the call-in powers under this section to the Devolved Administrations.
Amendment 24, page 31, line 2, after “State” insert
‘, the Scottish Ministers, the Welsh Ministers and the Department for the Economy in Northern Ireland’.
This amendment relates to Amendment 23.
Amendment 25, page 31, line 7, after “State” insert
‘, the Scottish Ministers, the Welsh Ministers and the Department for the Economy in Northern Ireland’.
This amendment relates to Amendment 23.
Amendment 9, in clause 66, page 37, line 39, leave out paragraphs (a), (b) and (c) and insert—
‘(a) all subsidies and subsidy schemes granted in the past 12 months, and
(b) an assessment of the extent to which they satisfy the subsidy control principles and the energy and environment principles.
(2) Any report made under this section must be formally laid before parliament by the Secretary of State.
(3) The Secretary of State must make an oral statement to the House of Commons when any report under this section is laid.’
This amendment ensures that the annual report prepared by the CMA includes all subsidies along with its assessment of the extent to which they fulfil the 7 principles set out in the Bill. The report also places a requirement for the Secretary of State to report to Parliament when a report is laid.
Amendment 26, in clause 68, page 39, line 1, at end insert—
‘(3A) The Chair of the CMA Board may appoint up to three non-executive members to the Subsidy Advice Unit established under subsection (1) in order to ensure that the Unit includes at least one person with relevant experience in relation to each of Wales, Scotland and Northern Ireland.’
This amendment would allow the CMA Chair to appoint up to three non-executive members to ensure that the Unit includes at least one person with experience in relation to each of Wales, Scotland and Northern Ireland.
Amendment 8, in clause 70, page 39, line 35, leave out subsection (2).
This amendment intends to allow individual subsidies given under a subsidy scheme to be reviewed, without the requirement for the broader subsidy scheme to be reviewed too.
Amendment 12, page 40, line 16, at end insert—
‘(c) the Welsh Ministers,
(d) the Scottish Ministers, or
(e) a Northern Ireland department;’.
This amendment includes the devolved administrations in the list of those who can apply to the Competition Appeal Tribunal for a review of a subsidy decision.
Amendment 27, in clause 79, page 46, line 3, at end insert—
‘(5A) Before issuing guidance under this section, the Secretary of State must seek the consent of the Scottish Ministers, the Welsh Ministers and the Department for the Economy in Northern Ireland.
(5B) If consent to the making of the regulations is not given by any of those authorities within the period of one month beginning with the day on which it is sought from that authority, the Secretary of State may make the regulations without that consent.
(5C) If regulations are made in reliance on subsection (5B), the Secretary of State must publish a statement explaining why the Secretary of State decided to make the regulations without the consent of the authority or authorities concerned.’
This amendment would require the Secretary of State to gain the consent of the Devolved Administrations before issuing guidance under Clause 79.
Amendment 15, in schedule 1, page 51, line 8, after “concerns” insert
‘and areas of relative economic deprivation’.
This amendment includes areas of relative economic deprivation as an example of the equity rationales that subsidies should address.
Amendment 16, page 52, line 6, at end insert—
‘(c) consistency with the United Kingdom achieving its net-zero commitments established under the Climate Change Act 2008.’
This amendment adds consistency with the UK’s net-zero commitments as a particular consideration for public authorities before deciding whether to give a subsidy.
Amendment 11, page 52, line 6, at end insert—
‘Net Zero
H Subsidies should not normally encourage behaviour which will have a negative effect on the achievement of the UK’s net-zero commitments.’
This amendment adds a subsidy control principle relating to the UK’s net zero commitments.
Amendment 17, in schedule 2, page 52, line 15, at end insert—
‘(c) delivering the UK’s net-zero commitments established under the Climate Change Act 2008.’
This amendment would ensure that subsidies related to energy and the environment incentivise the beneficiary to help deliver the UK’s net-zero commitments.
Thank you for calling me to speak in this important debate, Madam Deputy Speaker. It is a delight to be present in this incubation Chamber, where viruses from all around these islands—every corner of them—can come to mix freely, so that we can return this toxic cocktail to our constituents, constituencies and families. I am delighted to be able to be physically present at this time.
I will speak briefly to new clause 1, which is in my name and those of my colleagues, as well as the other amendments that stand in my name. My hon. Friend the Member for Edinburgh North and Leith (Deidre Brock) will fill in the rest of the details and explain more about our rationale for the new clause.
The logic behind new clause 1 is that agricultural subsidies do not fit neatly into subsidy control regimes. That has been recognised by the World Trade Organisation, which is the reason for its agreement on agriculture; it has been recognised by the European Union, which is the reason for the common agricultural policy; indeed, it has been recognised across the world. We, and the Scottish Government, still have no idea why the UK Government decided to go against the flow and include agricultural subsidies in the Bill, rather than providing a separate arrangement for them.
The new clause simply removes agriculture from the consideration. It does not mean that we should not have a control regime of some sort for agriculture, and it does not mean that we should not have rules relating to agriculture. It means that agriculture does not fit neatly here, and should not form part of the main subsidy control regime in the Bill.
Amendment 10 relates to streamlined subsidy schemes. The change for which we are asking would allow devolved Administrations to make such schemes. Given that those Administrations have devolved competences by law, it makes no sense that the schemes can only be made by the Secretary of State in the UK Government. Obviously we would like Scottish independence, but in the absence of a vote on that, we are not asking for devolved Administrations to be able to overstep their devolved competences. We are merely asking for parity—for the ability of devolved Administrations to create streamlined subsidy schemes. They would still only be able to do that within their areas of devolved competence, and they would still only be able to do it within their limited financial envelopes. We are not asking for anything strange or unusual; we are not seeking some sort of power grab; it is simply to do with parity.
(2 years, 8 months ago)
Commons ChamberI thank the hon. Gentleman for that point of order. I assure him that I am listening carefully and will let the House know if anything is disorderly. Obviously lots of others want to speak, so the hon. Member for Watford (Dean Russell) might not want to give his entire life story. It is quite important that his speech be relevant to the Bill, which is about the remuneration of musicians.
I thank the hon. Member for Swansea West (Geraint Davies) for making sure that I stay on track, as it were.
The reason I am saying all this is that I am trying to give an illustration of how people get into the music business. Some people may not necessarily be No. 1 pop stars on Radio 1 or at the forefront of everyone’s mind when we think about rock and roll or music streaming, but there is a huge weight of people who are fans—individuals or groups who are more at the edges. I have heard statements such as the following from the BPI:
“This Bill would bind British music in red tape, reduce income for the most entrepreneurial artists, stifle investment and innovation by record labels, and disproportionately harm the independent sector.”
That is why I am saying these things.
It is not just about streaming in the broad sense or the famous artists we have all heard of, including our fantastic colleague the hon. Member for Perth and North Perthshire. It is about the long tail of artists and the people who want to be able to access art—music is art. It is about a wide range of speakers, artists and voices. It is also about diversity and making sure that up-and-coming new artists can be heard in the next five or 10 years and that we have the right infrastructure in place in the UK to enable that and support them. My concern about the Bill is that, noble as its goals are, it risks having an inadvertent impact that may not deliver on that aim. That is why I tell these stories; I assure hon. Members that it is not about trying to speak for the sake of speaking.
(2 years, 9 months ago)
Commons ChamberI am grateful to the right hon. Gentleman, and I much appreciate his relatively new-found enthusiasm for the marine energy sector. I pay tribute to his colleagues, the hon. Members for Kilmarnock and Loudoun (Alan Brown) and for Inverclyde (Ronnie Cowan), for the help that they have given the all-party parliamentary group on marine energy, which I founded in July 2016. The group has 25 members, two of whom are from the Scottish National party, and their support is greatly valued. However, this is a great British success story, which has an impact on opportunities from the Isle of Wight, along the coast of Cornwall, up through Wales and into Northern Ireland.
As the right hon. Gentleman will know, this wonderful decision by the Government has been greeted by the chair of RenewableUK as a
“major step forward for the…tidal energy industry.”
The chair of the Marine Energy Council has said:
“The impact of this support cannot be overstated.”
Furthermore, Nova Innovation has said that this will be
“turbocharging the delivery of tidal energy”.
This is a pivotal moment, and I am sure the right hon. Gentleman will agree that it is a huge leap forward for marine energy.
Order. It is not customary to read out very long interventions.
I must say to the hon. Gentleman that my support for this is not just for the short term; I was at the port of Nigg when the MeyGen project was launched many years ago, so the subject has been dear to my heart for a long time. I do, however, agree with him about the scale of the opportunity. Of course the £20 million of investment that was announced yesterday is important, because it will allow us to develop the industry, but the question at the heart of today’s debate is about the scale of our ambition.
I respectfully ask the Minister, as I would ask the Chancellor of the Exchequer, for a recognition of the scale of this opportunity. Phase 2 of the MeyGen project has already been permitted to go up to 80 MW, and in the Pentland Firth it could ultimately reach as much as 400 MW, but the ability to expand from the current 6 MW installed in MeyGen phase 1 is restrained by the investment that has been put in place in this round. We would certainly not be looking at deploying the 80 MW; it would be a much reduced figure. I would simply say to the Minister and to all Members: let us have that ambition. Let us have that desire to see this green energy source get to 15% of UK electricity production. To do that, however, we have to show more ambition than is being shown today. I do not wish to be seen as ungrateful for what has happened; all I am asking the Government to do is to recognise the scale—
(2 years, 10 months ago)
Commons ChamberThe hon. Member makes an excellent point, and I just want to pick up on what he said. He points to the fact that the parent company had substantive profits, and that point was made by the Unite representatives who contacted me. I do not think that that case would have survived the employment tribunal in its early stages, as I do not think that it would have crossed the threshold of a sound, genuine business reason. I think the reason why Alex Cruz appeared before your Committee five or six months later and spoke very differently about his plans for pilots, cabin crew and everybody else was because the company was on thin ice, and I think some damaging concessions were made in that session. I think you are right, but I do not think that my solution fails to capture it.
Order. I remind the hon. Lady not to use the word “you”.
I do not think that my proposal is at odds with what the hon. Member suggests.
Just briefly, because I am coming to the end—[Hon. Members: “No.”] I would like to focus the remainder of my remarks on the detailed work that has gone into clause 1 and the extended duty to consult, which is proposed to go into the Trade Union and Labour Relations (Consolidation) Act as new section 187A. One of the things I think is most surprising about this, despite the fact that it is obviously very persuasive at first blush, is that it immediately takes the trade union, the employee and the employer into their very first meeting talking about fire and rehire. When I spoke to my constituents and the Unite representatives who were looking after them, the thing that had been the most stressful was that they had gone into these meetings and found that from the very start, dismissal was already being mentioned as an option. It was, “You will take this pay cut, otherwise we will sack you and get you back.” That seems to exacerbate the problem, rather than improve it.
The law in this area is not working. When I speak to employers about why they have been raising fire and rehire so early, they always cite section 188 consultation obligations, the “in good time” requirement under that, and the genuine fear that they will be hit with a punitive protective award if they have not put all their cards on the table at the start. A much more sensible route would be to take the heat out of these negotiations and make fire and rehire a last resort that only comes in when all other options have been explored.
That is why we should have specific language in a code of practice. It could say something like, “An employer who begins a section 188 consultation only after it has attempted to negotiate a change in terms and conditions consensually will be regarded as beginning that consultation in good time.” Alternatively, it could say, “Where an employer is attempting to negotiate new terms and conditions before any fire and rehire process, that amounts to special circumstances that rendered it reasonably practicable not to comply with section 188.”
The hon. Lady needs to answer the first intervention before taking another.
I have given way enough on this. [Interruption.] Let me make some progress and I will—
Order. It is up to the hon. Gentleman whether he wants to give way.
Thank you very much, Madam Deputy Speaker.
For those who seek to minimise the scale of fire and rehire, let us remember—the point was made earlier—that one in 10 workers, around 3 million people across the country, of whom a worrying proportion are young or from an ethnic minority background, face having their pay cut or their rights stripped away, or losing their job. What is most alarming is that fire and rehire is being used not by smaller companies but by big national names such as British Airways, British Gas, Tesco, Clarks, Argos and Weetabix, to name a few. All of them are established companies. Many saw bumper sales during lockdown. Workers at these companies, whether in the warehouse, in the factory, on the shop floor or in HGV cabs are also the workers who kept us moving during the pandemic.
Some companies threatening their staff with fire and rehire, such as Tesco and British Airways, even received Government handouts during the pandemic, only to take the money and then show their staff the door. That is scandalous. Rather than helping working people, the Government have subsidised their dismissal during the worst health and economic crisis in a generation. This is a national disgrace.
On a point of order, Madam Deputy Speaker.
I hope it is a point of order and does not just disturb the debate.
At what point does a debate on Second Reading, when we should be debating the general principles of a Bill, turn into a Committee debate in which we parse one or two words in individual clauses? I believe that is a reasonable point given how the debate is currently developing.
I thank the hon. Gentleman for that point of order. Basically, a Second reading debate is very wide-ranging and hon. and right hon. Members are entitled to raise issues that they feel might be problematic if the Bill were enacted. This is a very wide-ranging debate that on another occasion I am sure the hon. Gentleman would appreciate enormously.
The hon. Member for Cardiff West (Kevin Brennan) makes a very good point, and I have a lot of time for him generally. My point is a general point, but there are specifics underpinning it that we have to consider. The definition of “all information” is relevant, as is the definition of “less favourable” when considering whether an employment contract is now less favourable. That interpretation will be left for the courts and lawyers to decide. I am looking at this from a business perspective. How would it affect the likelihood of businesses wanting to employ people? That is a big commitment for any business.
(2 years, 10 months ago)
Commons ChamberIt is a pleasure to contribute to this debate. I think we can all agree on the immense importance of our small businesses and high streets that we represent in our constituencies, but I must also add shopping parades. We do not hear a lot about shopping parades. They are not necessarily as glamorous as town centres, but I must say that the small businesses that operate in the shopping parades in Ipswich have played an absolutely vital role, particularly when restrictions were in place and people could not go far from their home. They worked incredibly hard to support many of my constituents during that key phase and I would like to mention them here today.
The word “churlish” has been used a fair bit in this debate so far, by the Minister and other colleagues, and I think it is correct to use that word. Overall, £407 billion has been spent by the Government, much of which has been to support businesses through the furlough scheme, which we think has protected about 12 million jobs. In my constituency alone, £7.6 million has been given in restart grants to support local businesses in my town, so I think it is a slight difference to say, “Well, maybe it could have been slightly better in this way or that way,” and try to pretend that we have not done anything significant. I believe this Government have moved heaven and earth to support businesses in my constituency.
One hon. Member said earlier in the debate that the Conservatives are no longer the party of business and that every businessperson he talks to is disparaging about the Government’s support. That is simply not the case. Time and time again I talk to constituents and businesses in my constituency, some of whom have never actually supported the Conservatives before but are now open to doing so precisely because of the support that has been provided. That is not to say that there are not businesses and people out there who are not so happy with the support. That is true. These are conversations that I have had—[Interruption.] These are real conversations, so I do not know why you are laughing at me. [Interruption.] Sorry—I know I must refer to Members through the Chair. I got slightly animated there; I am very, very sorry. I have been getting better at that but sometimes standards slip.
I would like to talk about the town deal, which has been incredibly welcome for many hon. Friends and hon. Members. Ipswich, of course, has benefited from getting £25 million through a town deal. There are 11 different projects as part of that town deal that are making, and will make, I believe, an enormous difference to our town centre and to many businesses. As part of that—I mentioned shopping parades—there is a £2.5 million local shopping parade regeneration fund to support our shopping parades. We have buildings that have collected dust and have sat there empty that are being brought back into use. I cannot believe that about £100,000 had to be spent removing pigeon poo from one of those buildings, but that is the case. One of those projects will bring the Paul’s silo building in Ipswich back into use. The old post office building will be brought back into use because of the money supported through the town deal.
If the Labour party was this new pro-business party, despite the fact that it was not long ago that many of you were going into a general election supporting a Communist to be Prime Minister—[Interruption.] Of course, it was not long—[Interruption.] Was he not? [Interruption.] Was he not? But, of course, I forget—“under new management”. I do not believe that the Labour party can credibly claim to be the party of business, but why is it that you pour scorn on the town deal, which is providing over £3 billion—
Order. Can the hon. Gentleman please stop making it so personal? He keeps saying “you” and he knows he must not do that.
Over £3 billion has been provided through the town deal programme—something that I believe all hon. Members should welcome. This is vital support, but time and time again, scorn has been poured on it and I think that is regrettable, because I would have thought that the town deal is something that we can all get behind and look at all the different ways that it supports local business.
I would like to talk about crime and antisocial behaviour, which is something that I think must be tackled if we are to support businesses on our high streets as they recover from the covid pandemic. I mention this with respect to both the night-time economy and the fact that, time and time again, I come across and am contacted by businesses in Ipswich who are victims of persistent crime, including shoplifting and everything else. This is a blight on their existence, so we need to have, in my view, a zero-tolerance approach to this kind of, as some people might call it, “low-level antisocial behaviour and crime”, but there is nothing “low-level” about something that happens week after week and seriously affects your ability to operate as a business. We need to have that zero-tolerance approach.
We are getting 20,000 extra police officers, but I would like to see a review of the national police funding formula. In Suffolk, we are getting between 50 and 60 new police officers, but, if we were funded fairly, it would probably be closer to 100. We need to look at that and at the night-time economy, because we do have a problem in Ipswich with crime. We also have a problem with drugs—drug-dealing and drug-taking—in the town centre, particularly on a Friday and Saturday night. The concern that I have is that you do not have that positive police presence and positivity, so negative influence can come into the town centre. Tackling crime and antisocial behaviour in our town centres must be part of supporting businesses as they recover from the covid pandemic.
I support the opportunity to debate this, and I agree with many hon. Friends that business rates should be looked at. We should strive for a level playing field, and we are so far away from having that level playing field. We see businesses that are rooted in our constituencies, and could not be more local and more important to the functioning of our local communities, unable to co-operate.
I think we should strive for a situation in which our town centres continue to be key retail centres. There may be some that are more residential, but we should not give up on a significant component of town centres and city centres being retail. For that to happen, we need a serious look at business rates. I was pleased to see that beer duty may also be looked at, which would be vital to the hospitality sector in Ipswich.
I do think that there needs to be less churlishness, because the Government have provided unprecedented support for businesses throughout the pandemic. Over £400 billion has been spent—£7.6 million in Ipswich alone has been spent on restart grants and furlough—so we need to have that debate. There needs to be an appreciation that at some point there will have to be a reckoning when it comes to public finances.
It is one thing to say, whenever there is a spending commitment or a debate about spending money, that we will always agree to it, but we cannot at the same time vote against the move to withdraw restrictions, which at least gave businesses in my constituency an opportunity over the summer to breathe and recover from the trauma that they have experienced throughout the pandemic. There are challenges ahead when it comes to covid, but I think it was right to allow businesses to recover in the summer period.
Does my hon. Friend agree that there is the potential for a three-level look at this, as we have the high street, out-of-town shopping and online businesses? There are three different categories. My constituency has out-of-town shopping centres that are doing very well, thank you, but the high streets are in a very difficult place. To go back to his earlier point, may I remind him that the hope that railway stations—whether Devizes or Ferryhill—can give to local communities in developing—
Order. The hon. Gentleman has only just arrived and making a long intervention, having only just got here, is just taking up the time of others.
I thank my hon. Friend for the intervention and he is absolutely right in what he says. Of course, the challenge is to get a flexible system that recognises the diversity of our business system, which is why an overall review of business rates is better than some blanket abolition.
(3 years, 2 months ago)
Commons ChamberI pay tribute to the work of my hon. Friend’s all-party parliamentary group, with which I am quite familiar. I wholeheartedly agree with him about the importance of that research, and about the link between that important research and this agency. I will develop that point further in a few moments.
As hon. Members have indicated, UK science is not only inspiring; it can also be groundbreaking and is a key economic driver. Our university research base alone contributes £95 billion to the economy, supporting nearly 1 million jobs in scientific institutes, charities and businesses of all sizes. Research by Oxford Economics commissioned by the Department for Business, Energy and Industrial Strategy found that each £1 of public research and development—such as the money to be spent on ARIA—stimulates between £1.96 and £2.34 of private research and development, and we cannot recover from the pandemic without inspiring and initiating more private sector investment in research and development. Together, private and public sector research can help to address the key challenges facing humanity—from climate change to inequality, from pandemics to productivity.
That brings us very neatly to the broken promises of this Conservative Government on overseas development aid, as raised by my hon. Friend the Member for Cardiff South and Penarth (Stephen Doughty), and how that betrays the poorest among us and the critical challenges faced by us all. With over £4.1 billion slashed from overseas development aid, the £120 million cut from science and research programmes may appear minor, but that has already had a devastating impact on science here and abroad. Cutting funding from global challenges research fund hubs, for example, threatens researchers at Newcastle University in my constituency, as well as scientists in developing countries working together on water security. These cuts are a consequence of the Government’s decision to scrap the legally binding 0.7% of GDP target for overseas development aid.
New clause 4 tabled by the right hon. Member for Sutton Coldfield (Mr Mitchell), which sought to reverse that decision, has not been selected for debate, though a debate on the issue may follow; certainly, the debate is not going away. Particularly in relation to ARIA and the amendments before us, it is really important to emphasise that for UK science, research and credibility, these cuts have a significant impact. The UK has been the only G7 country to cut aid in the middle of a pandemic, and in so doing it has united hon. and right hon. Members across this House who are horrified by the harm done—harm such as, in the world’s worst humanitarian crisis, in Yemen, slashing aid by 60% without conducting an impact assessment, and harm such as cutting bilateral funding on water, sanitation and hygiene—
Order. I would like the hon. Lady to return to the Bill.
I thank you, Madam Deputy Speaker, because that is exactly the point to which I am going—to the amendments. Just to say that the funding for coronavirus research, which is the kind of world-beating or leading research that we would hope ARIA will be looking at, has been cut by 70%, which will kill the project. A Government happy to withdraw support for vital research projects across the globe are not a Government who wish to act in the best interests of science, the country or the world.
On ARIA itself, we have many serious concerns. We recognise the need for new mechanisms to support high-risk, high-reward research in our science sector, and as such ARIA is a step in the right direction. ARIA can transform our scientific landscape and we can build an institution that furthers our societal aims for decades to come, but we have concerns, which our amendments seek to address, about the lack of direction, strategy and accountability in the Government’s current proposals. Without such improvements, we fear that the agency could be used to pursue vanity projects disconnected from the public interest.
The first major issue with the Bill is the absence of a mission for ARIA, which has already been raised. What is ARIA for and what is it working towards? Labour’s amendment 12 would require ARIA to have a specific mission for ARIA’s first decade, and we want that mission to be climate change.
Although a number of people have withdrawn from this debate, there are still a fair number of speakers. That means that if everybody takes about six minutes, we will be able to get everybody in. We need to think of each other in conducting the debate. Nos. 4, 5, 6, 7 and 8 on the call list have withdrawn, so we now go to Layla Moran.
As a physics graduate and the MP for Oxford West and Abingdon—a constituency proudly at the heart of this country’s scientific innovation—I welcome much of what ARIA hopes to achieve. Time and again, the lack of funding for genuinely high-risk, high-reward science is a common refrain in conversations I have with scientists I meet, so on the face of it ARIA is a good idea.
Nevertheless, the Liberal Democrats have concerns about the Bill, and I will quickly raise just two. First, we are very concerned about the Secretary of State’s unchecked powers to choose who leads this highly independent agency. On top of that, it was recently revealed that the Government’s intention is to exempt ARIA from freedom of information legislation. Transparency is at the core of good science, as it should be for good politics. If we want this organisation to succeed, the public should have faith in how taxpayers’ money is spent. That is why the Liberal Democrats have proposed a strong accountability mechanism in amendment 11, which would give the Science and Technology Committee the power to approve nominees for the position of chair and chief executive officer.
Secondly, it is beyond disappointing that the Government have failed to use ARIA’s potential to tackle the climate emergency. New clause 3 would therefore ensure that ARIA’s research did not lead to any increase in the UK’s carbon emissions. Moreover, a quarter of ARIA’s annual budget would be directed specifically to the development of green technologies.
In conclusion, transparency and the climate emergency are two of the very many important aspects that are missing from this Bill—ones that we seek to fix. This new agency has great potential. Let us not mess it up now.
No. 10 on the speakers’ list has withdrawn. No. 11 is not here and Nos. 12 and 13 have withdrawn, so I call Richard Fuller.
It is a surprise to be called so early, but it is nevertheless welcome. I was not on the Public Bill Committee, which I know will have been a sadness for all its members, but for me it was of particular sadness because for the future of our country and most other countries, the way in which we nurture and promote innovation is crucial. Although this is a small Bill that generally has wide support across the House, it is rather important that we get it right. It is therefore important that today we debate some of the issues on which the Committee was not able to reach a full conclusion.
Innovation is crucial for our success, and I hope that the Minister and the Department will move on from the fact that we have innovation to look at ways in which we can promote the implementation of innovation, particularly through the removal of barriers and the promotion of competition, so that we can see the fruits of this investment in tangible economic and social success for our country.
Looking through the amendments, I would group them into three areas that it seems were not fully resolved in Committee: first, the extent of oversight; secondly, the issue of purpose or mission; and, thirdly, appointments. On oversight, although each of the proposed steps might be worthy, each of them is also an impediment. If there is one driving value that I hope we have for the Bill at this stage, it is to have the courage to enable this new and additional form of innovation investing to have the freedom to grow and do what it wishes to do.
If, at some point in the future, we find that the programme has gone off the rails somewhat and gone beyond what we know, it would perhaps then be useful for us to put more bureaucratic layers on top of it, but we certainly should not do so from the outset. If we do that from the outset, essentially we are killing the idea in its entirety. It is so easy for us here to say, “We really believe in this, but we would like this or that.” It is quite natural, as protectors of taxpayers’ money—that used to be a role of this House, but sadly it is one that has been lacking for about 40 years—that we want to take that responsibility seriously and to be thorough, but with this Bill we have to accept that if we are going to take that step, we have to put trust in this group. I would be interested to hear what other Members, particularly the hon. Member for Blackley and Broughton (Graham Stringer) with his long experience, have to say about whether this is the right step. I will come back to that point later in respect of appointments.
On the issue of purpose, the Labour Front-Bench spokesperson, the hon. Member for Newcastle upon Tyne Central (Chi Onwurah)—I know she has a strong and real passion for science, and I have listened to her speak up for science over a number of years, so I know her intention is right—has tabled an amendment saying that the core mission should be about the climate change goals. The SNP spokesman, the hon. Member for Aberdeen South (Stephen Flynn), who opened the debate, similarly said that we should focus on the environment.
It is important to ask what impact it would have if we made the environment the focus. We currently have $30 trillion-worth of environmental, social and governance assets in the world. The Bill is proposing to add a flow of approximately $1 billion a year, or 1 in 30,000 of the assets that are already there. In terms of where moneys are flowing, this year’s flow of ESG in the private sector is about $130 billion to $140 billion. If we were to make the environment the core mission, we would essentially be tossing £800 million on top of an enormous pile of assets that is already there and an enormous additional inflow this year that is already happening. By its very nature, we would be doing the thing that we are not supposed to be asking ARIA to do, which essentially is to do what everybody else is doing. The whole purpose of ARIA is to do those things that other people are not doing. I feel that it is a mistake to say, “This is a really important mission—aren’t you terrible for not saying that we should focus on it?”, rather than “There are other missions—there is a bigger mission out there that perhaps we as politicians do not have the insight to understand.” That is the whole purpose of setting up ARIA, because with our bureaucratic fingers and our tiny political minds we just are not able to think of those things. It is worth our while considering that, so I absolutely agree with my hon. Friend the Member for South Basildon and East Thurrock (Stephen Metcalfe) that it should not have a mission. The whole purpose of ARIA is to do those things that other people are not doing. I feel that it is a mistake to say, “This is a really important mission—aren’t you terrible for not saying that we should focus on it?”, rather than “There are other missions—there is a bigger mission out there that perhaps we as politicians do not have the insight to understand.” That is the whole purpose of setting up ARIA, because with our bureaucratic fingers and our tiny political minds we just are not able to think of those things. It is worth our while considering that, so I absolutely agree with my hon. Friend the Member for South Basildon and East Thurrock (Stephen Metcalfe) that it should not have a mission.
Absolutely.
I was happy to be a member of the Bill Committee and we had constructive, good humoured discussions, many of which have been echoed in this evening’s debate. One thing that particularly struck me was the quality of the evidence that the witnesses gave. I have a question for the Minister: if she, like me, was so impressed by what we heard, particularly from the representatives of DARPA, what did she learn from it and what changes could be made to the Bill to reflect the wisdom imparted by the witnesses?
I shall speak in support of all the Opposition amendments, but I want to address in particular amendment 12 and the need for a mission. I was struck by the outline of the Haldane principle by my hon. Friend the Member for Blackley and Broughton (Graham Stringer), who is my good friend. He is absolutely right that there is no need for the Government to get involved in the detail, but equally there is no obligation to withdraw from a having a general sense of what we are trying to do. The key issue is whether we say, “We’re just not going to have a view on what it is going to do” or we have some sense of where this might go.
I spent much of last week reading Professor Dieter Helm’s book on net zero, which I commend to hon. Members. He is quite influential on the Government, I think, but it is pretty depressing reading regarding where we are on achieving net zero. We are nowhere near doing what is needed. One of the key areas is science, innovation and research, so it would not be unreasonable to suggest putting our great scientific minds to work on the great challenge of our times: what to do about the climate crisis.
I am fortunate to chair the all-party parliamentary group for life sciences. When I chaired a meeting this afternoon, one question that I asked the people before us was, “Why was it that you were so successful in tackling the vaccines crisis?” It was because they worked in a different way, with a mission and a purpose, and I think exactly the same thing would happen if we set our great scientific minds to work on this great challenge of our times.
It is important to support amendment 12, as well as the other amendments. What a difference it could make, and what a political opportunity for the Government as we head towards the G7 this week and COP26. Unless something like this is adopted, frankly, we will not get where we need to.
Nos. 28, 29 and 30 have withdrawn, so I call Ruth Jones.
Thank you, Madam Deputy Speaker; yes, it is a surprisingly fast debate tonight, which is good.
I am grateful to be able to speak in this important debate and to say a few words on behalf of the people of Newport West. I commend the high level of debate, which has been impressive; I have learnt a lot.
Like other Opposition colleagues, I welcome the creation of ARIA. The UK has a proud tradition in science and innovation, but Labour has long called for further investment in long-term, high-ambition research and development. I join Opposition Members who have raised concerns about the Bill in its current form. Most concerningly, the Government’s proposals for the agency do not provide it with a clear purpose or mission. For the new agency to succeed, it must be given a well-defined mission and Ministers must play a role in setting that mission. In setting that mission, the creation of ARIA, which will only account for a fraction of the overall science spending, must not serve as a distraction from the country’s wider research and development priorities.
It is a matter of regret—but, alas, no surprise—that this 11-year-old Tory Government are reportedly on course to miss their target of spending 2.4% of GDP on R and D by 2027. They have also failed to provide the support needed to medical research charities during the pandemic, forcing them to make sweeping cuts. I say to the Minister that we need real clarity on how the devolved Administrations will be engaged with and supported to ensure that people across the whole United Kingdom benefit in the months and years ahead.
Labour’s amendment 12 on mission has a welcome focus on net zero, which, as a shadow environment Minister, I welcome very strongly. The greatest challenge that we face as a country and as a planet is the climate and environment emergency, so I applaud and thank the shadow Minister, my hon. Friend the Member for Newcastle upon Tyne Central (Chi Onwurah), for proposing that the fight to preserve our planet and protect our environment be the new agency’s mission for the first 10 years. Achieving net zero offers a broad mission and ARIA’s new CEO would have plenty of discretion in choosing which aspects of the climate and environmental emergency to address.
I turn to oversight and accountability. As has already been mentioned, it is important that people know what is happening, how and when. By making ARIA subject to the Freedom of Information Act 2000 and the Public Contracts Regulations 2015, we would be drawing open the curtains and shining a light where it is absolutely necessary.
Let me turn to regional and national empowerment. As I indicated, I want my constituents in Newport West to benefit as much as those living in Scotland, England and Northern Ireland. As such, it is vital that the Minister supports amendment 13, which would require the agency to have regard for the benefit of its activities across the nations and regions of our United Kingdom.
I am in the privileged position of having the Intellectual Property Office located in my constituency, and I am proud to stand up and shout on behalf of the next up-and-coming Einstein, to ensure that they can work on a level playing field. This Bill may be small, but it is important and we must get it right now.
I turn to the new clause in the name of the right hon. Member for Sutton Coldfield (Mr Mitchell), who has a long track record on fighting for the rights of the poorest in our world. I commend him and his many right hon. and hon. Friends—notably the former Prime Minister, the right hon. Member for Maidenhead (Mrs May)—for standing up and doing the right thing. So many colleagues on both sides of the House have spoken eloquently in this debate about who we are as a nation and about the values that drive what we do and when we do it. Although I would of course never question a ruling by Mr Speaker, I do want to place on record the fact that I regret that the new clause was not selected. However, I am really pleased that the right hon. Gentleman has secured his debate tomorrow, and I look forward to its outcome.
Nos. 32, 33 and 34 have withdrawn, so we go to Jim Shannon.
I cannot recall a time when we have rushed so fast through the speakers, Madam Deputy Speaker. At the beginning, as No. 35, I thought I would have three minutes. You have asked us to keep to six minutes, and we will do our best—indeed, I will keep to that.
I value the opportunity to speak on this matter of utmost importance. I also welcome the Chancellor’s announcement—I have my instructions for tonight as the one who will do the proxy votes on behalf of my party—that the UK Government will invest at least £800 million in this new agency as part of the Government’s wider commitment to increase public research and development funding by £22 billion by 2024-25 and to increase overall UK spending on R&D to 2.4% of GDP by 2027. It would be churlish not to welcome that and not to say how good it is to have those figures on the record here tonight. It is clear that the Government have given a commitment to ensure that this agency will be a success story.
When I see that many of our shops have been tied up not simply by Brexit but by the over-dependence on overseas manufacturing and production, I lament that because we were at one time the greatest industrial nation, with the greatest innovators. I believe we can be that again; all we need to do is follow the Government’s policy and strategy, as set out here tonight, and then we can all benefit across this great nation. I still believe that that title is ours, but for us to become all we can become in terms of leading groundbreaking blue-sky projects, we must put the money in, and the Government are clearly putting their money in.
I want to ask the Minister—last time, we did not have much time, and she was unable to respond—to ensure that the R&D and the spend benefit all the regions. The hon. Member for Newport West (Ruth Jones) and others referred to that. I want Northern Ireland very clearly to be a recipient of the R&D so that we have some of the benefit from this whole project. Technology does not come cheap, but the rewards are extensive. What we have achieved with the covid vaccine through investing money is an indication that greatness still awaits. The Government have been extremely successful in the coronavirus vaccine roll-out and in how they have benefitted and helped all the companies, whether with furlough or the grant scheme. Many businesses in my constituency are here today because of the Government’s commitment, and I want to put on record my thanks to them for that as well.
We all have a great affection for our mothers, and I have a particular affection for mine. She always said that her greatest investment was the time she invested to believe in her children. It is important that we take note of those wise words, and I hope that my mother will be very pleased with the investment she made in her four children. If God spares her, she will be 90 on 14 July, so she has had a long and very good life. When I phone her, as I did at about 6 o’clock tonight, she always asks me what is happening over here, and I always tell her, because she is really deeply interested. We are very fortunate to have a 90-year-old mum who is sound in body and mind and still able to tell this big boy what to do when the time comes. That is what a mother does—she tells you off no matter what age you are, and I am always very conscious of that.
We must invest in our own people and in their ability. That is why I support this Bill and why we will be voting with the Government tonight. I want to take this opportunity to press the Minister for an assurance that the investment to which I referred earlier will take place across the UK, and will allow the wonderful research and development that takes place in Northern Ireland to continue. We have a great scheme in Northern Ireland, which works really well, to avail us with increased support and funding. I believe that the Minister will be happy to give that assurance and I will be happy to hold her to that assurance. I look forward to her response.
Northern Ireland has the best education system in the United Kingdom. I thank my colleague Peter Weir, the Education Minister, for the great job that he has done in trying to secure our children’s ongoing education through covid. As a result of this education, we have highly skilled young people who have so much to offer in terms of vision and goals. I meet those young people every day in my constituency of Strangford and across Northern Ireland. We have some wonderful people. We need to encourage them and to ensure that they can be part of that future as well. We do this as well for my grandchildren and, indeed, for everyone’s grandchildren.
We should also allow those with grand projects to take on young apprentices, who will learn how to take innovative approaches. It is very important that we do these things. The R&D projects to give young graduates a place at the R&D table would benefit from their wisdom, experience, enthusiasm and learning. Again, I commend the Northern Ireland Assembly, and particularly Minister Dodds and the Department of Enterprise, Trade and Investment, for all that they have done, working alongside the Education Minister to ensure that we in Northern Ireland can be part of this great nation of the United Kingdom of Great Britain and Northern Ireland—always better together and always better if we can share what we have. I see my colleague and friend, the hon. Member for Aberdeen South (Stephen Flynn), having a smile to himself. But I mean it. I want him to stay in the United Kingdom. I do not want him to leave; I want him to be a part of it.
Nos. 36 to 40 on the speakers’ list have withdrawn, so we go to Virginia Crosbie.
Thank you, Madam Deputy Speaker. It is a pleasure to speak in this important debate on ARIA and to follow the hon. Member for Strangford (Jim Shannon), who always speaks so eloquently and passionately. I particularly liked the fact that he mentioned his grandchildren.
I was proud to serve on the ARIA Bill Committee and I would like to thank the Minister and all those who have contributed to this landmark legislation. Setting up this agency will deliver on yet another manifesto commitment from 2019 and I wholeheartedly support the Bill. The last year has shown us the power of science to deliver solutions, and now is the time to further invest in the ideas of the future that will allow us to continue to make scientific progress.
ARIA needs to have as broad a remit as possible, not to be restricted in its scope, which would be the outcome if new clause 2 were accepted. Scientists need to have space and time to research new technologies without restrictions about the agency’s mission imposed upon them. In the words of Professor Bond in the evidence sessions of which I was part, this is about “radical innovation”.
In my constituency of Ynys Môn, there is already the infrastructure in place for research and innovation, hosted by the Menai Science Park, which is the innovation hub for Bangor University. Businesses such as Tech Tyfu, a vertical farming pilot project in Gwynedd and Ynys Môn delivered by Menter Môn, provide the opportunity for the UK to increase UK food production. We need to encourage more people with an innovative and entrepreneurial mindset, such as those at Tech Tyfu and the others located at M-Sparc, to engage with research in order to solve the problems that the world faces today and in the future. We need to recruit the right people and trust them, not micromanage them.
Amendments 1 and 12 look to focus ARIA’s core mission on achieving net zero and the impact of climate change. I am fully supportive of the goal of achieving net zero, as was laid out in the manifesto on which I proudly stood in 2019. Indeed, Ynys Môn— also known as energy island—will play a key part in delivering this target. However, restricting ARIA’s mission to this goal is not necessary, as we have already legislated for the net zero target by 2050, with ambitious interim targets and a cross-governmental framework in the Prime Minister’s 10-point plan.
ARIA also gives the opportunity to level up around the country, be truly inclusive and involve the brilliant minds from all over the United Kingdom, including those in Wales. It needs to be able to do that without being weighed down by bureaucracy. I spoke in Committee about why ARIA should be free from the freedom of information regime proposed in amendments 8 and 14. In Committee, we heard evidence about the potential burden of administration. UKRI told us that it had a team of staff purely to deal with the 300-plus FOI requests it receives annually. As Professor Dame Ottoline Leyser said, UKRI is “happy” to be able to respond to FOI requests, but
“there is a judgment call about the burden of administration”.––[Official Report, Advanced Research and Invention Agency Public Bill Committee, 14 April 2021; c. 9, Q4.]
With its unique freedoms and independence to enable transformational research, ARIA will inevitably receive a disproportionate number of FOI requests relative to its size. Our vision for ARIA is that it should be lean and agile. Do we really want it encumbered by that level of administrative burden? Do we want ARIA’s brilliant programme managers to be stifled by bureaucratic paperwork?
We also heard about whether ARIA will be able to deliver the game-changing R&D that we want if it is subject to FOI. It was Tony Blair who gave us the Freedom of Information Act and who subsequently described it as
“utterly undermining of sensible government”
To use his words:
“If you are trying to take a difficult decision and you're weighing up the pros and cons, you have frank conversations...And if those conversations then are put out in a published form that afterwards are liable to be highlighted in particular ways, you are going to be very cautious.”
Professor Philip Bond put this view into an R&D context in his discussions with the Committee:
“if you are asking people to go out on a limb to really push the envelope, I would assert that there is an argument, which has some validity, that you make it psychologically much easier for them if they do not feel that they are under a microscope.” ––[Official Report, Advanced Research and Invention Agency Public Bill Committee, 14 April 2021; c. 29, Q21.]
Mr Blair and Professor Bond perfectly highlight the fundamental reason why ARIA should be free from FOI: the last thing our scientists need when they are looking for the next internet is to be held back by caution.
The Bill already contains very strong statutory commitments to transparency: an annual report will be laid before Parliament; ARIA’s accounts and spending will be published; non-legislative mechanisms will be set out in a framework document; and there will be a thorough and transparent selection process to ensure it is led by respected individuals who will uphold public honour. Freedom of information requests can still be submitted to the Department for Business, Energy and Industrial Strategy and any organisation that ARIA works with. Any contracts awarded by ARIA will be publicly available.
ARIA will give the United Kingdom and the island of Ynys Môn the opportunity to grasp and shape our future on a global stage. It will help drive innovation and investment, and secure our status as a science superpower. I am proud—I am proud to support this Bill.
Nos. 42 to 49 on the speakers’ list have withdrawn, so we go to Angela Richardson.
Thank you, Madam Deputy Speaker. It is such a pleasure to follow my hon. Friend the Member for Ynys Môn (Virginia Crosbie), who is so passionate about this area. That came through in the Bill Committee, as it does whenever she speaks on behalf of her constituency.
It is a pleasure for me to speak on Report, as it was to be a member of the Committee and to speak on Second Reading. It is a relief to speak to amendments that pertain to the Bill today, even if I do not support them. I particularly want to speak to the procurement amendments tabled by both the Opposition and the Scottish National party, but first I wish to address the amendments that want to make ARIA’s primary mission health and research, or our net zero aims. We already have knowledge of and have committed significant resources to those two areas, and we understand the importance of tackling them. The benefit of freeing ARIA from those specific missions is the ability to go into the unknown—to the areas we do not have knowledge of. I have no issue with ARIA seeing successes or failures in those areas, but prescribing for those areas through ARIA may not necessarily be the cure we are looking for.
Turning to procurement, the exemption from the Public Contracts Regulations 2015 places freedom into the hands of the leaders and programme managers who will be recruited to run ARIA as an independent body. ARIA’s procurement will be at arm’s length from Government and Ministers. Procurement rules do not apply to the traditional R&D granting used by UKRI, but ARIA, like DARPA, will work in a different way by commissioning and contracting others to conduct research. ARIA will often be procuring research and development services, which can be in the scope of the procurement regulations.
(3 years, 5 months ago)
Commons ChamberIf you do not mind, Mr Deputy Speaker, I wish to make a slight confession: I am suffering from a rather extreme out-of-body experience. I have spent the past three and a half hours listening to Members from all parties—from not just the Conservatives but Labour, the SNP, the Liberal Democrats and the DUP—praising the Advanced Research and Invention Agency. I am having an out-of-body experience not because the House is the most united it has been since I arrived in this place, but because it is so united behind an idea promoted by Dominic Cummings. That shows what an indisputably good idea it must be.
It is absolutely right that the Government do everything they can to promote innovation, which has been the single engine for human progress over the past few centuries. Innovation is the single main reason why our health and wealth are immeasurably better than they were in generations past. Cambridge, my city, is the capital of innovation in the UK and, indeed, in Europe—perhaps in the world. It has had many successes, which have been referred to by a lot of colleagues—it is the global headquarters of AstraZeneca and it has had more Nobel prize winners than almost any country in the world.
One strange feature of innovation is that people often cannot tell where it will lead to when they are doing it. To give one topical example, when the Cambridge researcher Francis Crick was decoding DNA, he had no idea that more than half a century later, it would lead to the Wellcome Sanger Institute in my constituency doing more decoding and genome sequencing of the coronavirus than the rest of the world put together, helping us to track and tackle this pandemic.
The Government do a huge amount to promote innovation already, and we have heard a lot about it this afternoon, so why do we need another agency? Why do we need ARIA? ARIA will help tackle one of the main obstacles of innovation in the public sector, which is that in the public sector, as compared with the private sector, the costs of failure are higher and the rewards for success are lower. What do I mean by that? In the public sector, if somebody fails, they get pilloried in the press and they get the Opposition after them. Ministers have to resign and civil servants lose their job. That does not happen in the private sector. In the public sector, if someone does something that succeeds massively, they do not get bonuses. They are not rewarded by an increase in profits and share prices. The incentives are less.
What we need to do with ARIA is reduce the costs of failure, and that is why it is so important to have a separate, stand-alone organisation that is not part of UKRI—one that has a culture of taking risks and knows that sometimes it is worth having failure. Indeed, if there are not occasional failures, it is not really succeeding in its objective of disrupting and taking risks.
It is important—I urge the Minister to do this—that we help ARIA get more of the rewards for success. Several of my hon. Friends touched on this point earlier. ARIA is able to commercialise and go into business, but let it keep some of the rewards from success, if those projects succeed. That would be a huge incentive for it to try to make sure that those things work.
I have four general points about ARIA. The first is that it must be additional to other forms of research and development. If it is just funding projects that get funded by UKRI already, it is not really doing what it should be. Secondly, it is very important that it can experiment to try out different forms of funding. It has to be able to do a whole range of different types of funding for different projects as it sees fit, and it should be flexible in doing that. For example, we can have a company or academics doing some sort of research that we think is disruptive and amazingly good, but it does not fit into any of the general pots we already have. ARIA needs to be able to give grants to projects that it thinks are worthwhile. It has to have flexibility, and that means not going through the public procurement rules as they exist at the moment.
When I worked in City Hall in London, I was responsible for the London Development Agency, and I did a whole range of projects with public procurement. All I can say is that the only people who think that public procurement rules do not strangle innovation are people who do not have direct experience of them. It is absolutely right that ARIA is exempted from the worst parts of those rules.
Thirdly, picking up on value for money, which some Opposition Members mentioned, it is absolutely right that the Treasury and the Government ensure value for money from public investments across the piece. The Treasury Green Book does that, but it is also right that the Government have a portfolio approach, like a private investor. They might have some lower risk investments in Treasury bonds and then some higher risk investments in venture capital, and they are not all judged by the same rules. We absolutely should not judge ARIA by the same blanket value-for-money rules as we would if we were building a bridge. That would strangle ARIA.
Fourthly, it is absolutely right, as a couple of Members have touched on, that ARIA has multi-annual budgets inasmuch as the Government and the Treasury can allow. Funding disruptive research often takes many years, and simply giving a drip-drip of funding one year at a time will mean a lot of disruptive technologies cannot take flight.
When I was chair of the Government’s Regulatory Policy Committee, I remember civil servants at the Department for Business, Energy and Industrial Strategy saying to me sagely, “Governments have always set up organisations as independent, and then the politicians realise all the problems of independence and then chip away at the independence over coming years, and the organisations gradually get brought down to heel.” It is very important that does not happen to ARIA, otherwise it will lose the reason for its existence. We have heard Opposition Members in particular talk about the need for FOI requests, for procurement rules, for mission statements and value for money assessments. I ask the Minister and the Government not to listen to those siren calls, which will clip ARIA’s wings at birth, and it will then never take flight.
Finally, I just want to settle one little discussion or dispute that we have had this afternoon. Many of my hon. Friends have been making bids for the location of ARIA; we have heard about Bristol, Bolton, Sedgefield, Doncaster and Guildford. I can sort this for the Government. Put the innovation agency where the innovators are: Cambridge—done.
It is a pleasure to follow my hon. Friend the Member for Warrington South (Andy Carter), and a particular pleasure to do so in person. He and I have been hanging around the same Zoom waiting rooms for much of the winter, and it is nice to be back in the Chamber.
As my hon. Friend the Member for Arundel and South Downs (Andrew Griffith) said at the beginning of his speech, today is the national day of reflection as we look back over the past year and remember our collective loss and, for many people, including my hon. Friend, our personal losses, but also look forward to a brighter future. That brighter future is because of science. In the past year, it has been a privilege to serve on the Select Committee on Science and Technology, together with the Chair, my right hon. Friend the Member for Tunbridge Wells (Greg Clark), who spoke earlier, and other Members who have spoken in the debate—my hon. Friends the Members for Bolton North East (Mark Logan) and for Arundel and South Downs, and the hon. Member for Glasgow North West (Carol Monaghan). I praise the Clerks of the Committee for all the work they have done. We have had a number of sessions on covid at very short notice and have also considered ARIA—or ARPA as we knew it at the time, and I have in my hand our report which was published on 12 February.
Looking at the past year and the work that the Science and Technology Committee has done, there is a real read-across from what happened with covid to ARIA. As I said in my intervention on the Secretary of State, at its best ARIA will learn from what we have done on covid in the past year. If covid has a silver lining, it is what it has enabled us to do in the science sphere, allowing us to throw off some of the shackles related to funding, innovation and things such as mRNA vaccines.
The Government have not exactly followed the Committee’s recommendations, and that is fair enough, but the Secretary of State was very forthcoming when he gave evidence to us last week about the reasons for that. As my right hon. Friend the Chair said, it is easy to dissipate £800 million. I know that it sounds like a lot of money, but in the context of our overall science budget it is not quite all that much. The Committee recommended that there be a client, but if there is not to be one, it is important that there is focus. If we are going to have focus, the leadership of ARIA will be key. I hope that our Committee can be involved. There has not been an Order in Council because ARIA does not yet exist, so there is no pre-appointment hearing, but I hope that our Committee can speak with the prospective chair and chief exec of ARIA.
Let me turn to some of the detail. I am pleased to see the range of innovative funding envisaged for ARIA, particularly through prizes, which can leverage huge amounts of private sector investment. We have this target of 2.4% of GDP for R&D. It is all very well spending more Government money, but the key is getting more private sector investment to get us to that 2.4% target. Any ways that we can leverage private sector investment through ARIA would be hugely welcome. We are also looking into grant-prize hybrids, seed grants for very early stage developers and equity stakes. As many hon. Members have said, including my hon. Friend the Member for North East Bedfordshire (Richard Fuller), we need to be better at capturing the commercial benefit of the world-class science that takes place in this country, and perhaps equity stakes through ARIA can be a part of that.
Our Committee took evidence from a number of organisations in our inquiry into what has now become ARIA. We heard from organisations that had worked well, such as DARPA, and some that had not worked quite so well. I wonder whether the sense of crisis to which I referred earlier is necessary for these sorts of things to work. In world war two, the Manhattan project obviously led to the atomic bomb. The cold war led to DARPA and the need for the United States to secure its own defence. What we have seen in the last year with covid has led to so many innovations in vaccines, therapeutics and beyond that will last well beyond this period; as was said earlier, these innovations may ultimately save more lives than have been lost, because of the speed of their development.
If ARIA is to work well, it needs somehow to harness that sense of crisis, and the breakthrough, breakneck response to crisis and existential threat. It needs the space to do so, autonomy from the Government and the freedom to fail. Science often learns more from what does not work than what does.
Before I draw my remarks to a conclusion, it would be remiss of me not to make my own pitch. Keele University in the wonderful constituency of Newcastle-under-Lyme is a fabulous university. It is a university enterprise zone and part of the Energy Research Accelerator, which links up multiple universities and private sector organisations across the west midlands. We also have a fabulous science and innovation park. We are a proud host of Cobra Biologics, one of the manufacturers of the amazing Oxford-AstraZeneca vaccine that is doing so much good in this country. It is not doing so much good elsewhere because of some rather foolish remarks by regulators, but we are very proud of our vaccine; if other countries do not want it, we will have it.
ARIA is a great idea. Like many of its would-be projects, it has the potential to be bold and transformative itself. But it also has the potential to fail, or at least not to work for as long as we might hope. I welcome the 10 years that we have set out in the Bill to give it a chance to work. Many iconoclastic structures end up being captured and overrun by bureaucracy; we must be really careful in that regard. As the Bill progresses through this House and the other place, I hope that the Government will be very firm in resisting all those who would strangle it at birth.
I call the final Back-Bench speaker, Richard Holden.
(3 years, 5 months ago)
Commons ChamberIt is a privilege to close this debate on behalf of the Government. In recent days, the House has debated the Budget through the lens of the Government’s response to the pandemic, including the comprehensive efforts we have made to protect jobs and businesses. Today, the focus of the debate has been on looking forward and discussing the ways in which last week’s Budget prepares the country for an investment-led recovery. I thank right hon. and hon. Members from across the House for the very constructive contributions that we have had throughout the debate.
This is a Budget in three parts: first, it protects jobs and livelihoods and provides additional support to get the British people and businesses through the crisis; secondly, it is clear and honest about the need to fix the public finances once we are on the way to recovery; and thirdly, it begins the essential work of building our future economy, including by providing the opportunity to level up across the country.
The Budget announced an additional £65 billion of measures over this year and next to support the economy in response to coronavirus. Taking into account the support in last November’s spending review, that figure for this year and next is £352 billion. Add in measures from the spring Budget last year and the figure rises to £407 billion. In other words, a comprehensive and sustained economic shock has been met with a comprehensive and sustained response.
In fact, thanks to the actions of my right hon. Friend the Chancellor, the Office for Budget Responsibility now expects the UK economy to recover to its pre-crisis level six months earlier than originally expected. That means the second rather than the fourth quarter of 2022. Unemployment, meanwhile, is expected to peak at around 6.5% instead of the nearly 12% that was feared last summer. As the Resolution Foundation has observed, this would be by far the lowest unemployment peak in any recent recession, despite this being the deepest downturn for 300 years.
The Budget maintains a number of essential further support measures, including the furlough scheme, which has been extended until the end of September, and support for the self-employed, which will also continue until September. Indeed, anyone who had filled in a tax return before last Wednesday will now be able to claim the fourth and fifth grants that have been made available for the self-employed, supporting more than 600,000 people on top of those already helped.
The Budget also maintains the universal credit uplift of £20 a week for a further six months, provides working tax credit claimants with equivalent support over the same timeframe and reaffirms our commitment to increase the national living wage to £8.91 from April. We announced a restart grant from April to help businesses to reopen and get going again and a new recovery loan scheme to replace our earlier bounce back loans and coronavirus interruption loans. We will continue to deliver a package that is unprecedented in its scope and scale and which reflects the wider strategy for cautiously reopening the economy, as set out in the Government’s road map. Above all, the distribution analysis shows that this is a package of measures that has supported those on the lowest incomes the most.
Over the course of the debate today, we have heard powerful contributions from a wide range of Members, and I want to draw attention to a number in particular. My right hon. Friend the Member for Maidenhead (Mrs May) spoke of the importance of skills, innovation and investing in human capital, which a number of Budget measures set out. My hon. Friend the Member for Fylde (Mark Menzies) recognised the importance of additional economic support, particularly in the hospitality, leisure and tourism industry.
My hon. Friend the Member for Stroud (Siobhan Baillie) reinforced the Government’s commitment to a green recovery and reskilling to take advantage of the investment set out in the Prime Minister’s 10-point plan. My right hon. Friend the Member for Ashford (Damian Green) also highlighted the importance of green innovation, which is reflected in the commitment to double the spending on energy innovation, with a new £1 billion net zero innovation portfolio.
My right hon. Friend the Member for South Northamptonshire (Andrea Leadsom) highlighted the key opportunity provided by our leadership of COP26. My hon. Friend the Member for Tiverton and Honiton (Neil Parish) highlighted the value of the super deduction policy. In answer to his question on fishing, I can confirm that fishing boats are within scope either for the super deduction or the related 50% first-year allowance.
My hon. Friend the Member for Southport (Damien Moore) praised my right hon. Friend the Chancellor for the vital support that businesses in his constituency, particularly in the hospitality sector, have received throughout the pandemic. My hon. Friend the Member for Milton Keynes North (Ben Everitt) praised the Budget as one that looks after jobs and looks after the future, including the new tech campus that will help the next generation in his area.
My hon. Friend the Member for Clwyd South (Simon Baynes) praised the additional funding for the Welsh Government and the investment through the accelerated city deals. My hon. Friend the Member for Waveney (Peter Aldous) praised the successful freeport bid for Felixstowe and the value of the towns fund, which will make such a difference to the regeneration of his local community.
My hon. Friend the Member for Guildford (Angela Richardson) praised the expansion of the self-employment income support scheme, which will support a further 600,000 people. My hon. Friend the Member for Carshalton and Wallington (Elliot Colburn) and many other Members praised the super deduction and the great benefits it will have for investment, as UK business leads that investment in our recovery.
My hon. Friend the Member for Crewe and Nantwich (Dr Mullan) welcomed the skills package, which will help to support our economic recovery from the pandemic. My hon. Friend the Member for Cities of London and Westminster (Nickie Aiken) welcomed the 5% VAT cut extension and rightly drew the House’s attention to the importance of Lord Hill’s listing review and the wider opportunities of the FinTech industry.
My hon. Friend the Member for Newcastle-under-Lyme (Aaron Bell) praised the Budget’s focus on levelling up and the towns agenda, and we make no apology for the frequency with which we will talk about our commitment to levelling up. My hon. Friend the Member for Bury South (Christian Wakeford) recognised the package of business support and the stimulus for jobs in his constituency that is offered by the super deduction.
Given the time, I will not run through the wide range of measures that my right hon. Friend the Chancellor set out or how, in addressing some of the issues raised by those on the Opposition Front Bench, he will boost productivity through schemes such as Help to Grow and Help to Grow: Digital, the plans to ensure that the UK is a scientific superpower, the £400 million annual uplift in science spending, the “future fund: breakthrough” scheme, the lifetime skills guarantee, the kickstart scheme, the restart scheme, the £3,000 for apprenticeships, the tripling of traineeships and the Government’s commitment to skills and investment.
Over the last year, this country has experienced a 10% fall in GDP—the largest fall in 300 years. In response, the Chancellor has presented a plan that will continue to protect jobs and livelihoods, that supports the British people and businesses through this moment of crisis, and that begins to fix the public finances and build our future economy. This is a Budget that, as the Chancellor rightly said, “meets the moment”; I commend it to the House.
Question put and agreed to.
Resolved,
That income tax is charged for the tax year 2021-22.
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
The Deputy Speaker put forthwith the Questions necessary to dispose of the motions made in the name of the Chancellor of the Exchequer (Standing Order No. 51(3)).
I am now required under Standing Order No. 51(3) to put successively, without further debate, the Question on each of the Ways and Means motions numbered 2 to 80, on which the Bill is to be brought in. These motions are set out in a separate paper distributed with today’s Order Paper.
2. Income tax (main rates)
Resolved,
That for the tax year 2021-22 the main rates of income tax are as follows—
(a) the basic rate is 20%,
(b) the higher rate is 40%, and
(c) the additional rate is 45%.
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
3. Income tax (default and savings rates)
Resolved,
That—
(1) For the tax year 2021-22 the default rates of income tax are as follows—
(a) the default basic rate is 20%,
(b) the default higher rate is 40%, and
(c) the default additional rate is 45%.
(2) For the tax year 2021-22 the savings rates of income tax are as follows—
(a) the savings basic rate is 20%,
(b) the savings higher rate is 40%, and
(c) the savings additional rate is 45%.
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
4. Income tax (starting rate limit for savings)
Resolved,
That—
(1) For the tax year 2021-22, the amount specified in section 12(3) of the Income Tax Act 2007 (the starting rate limit for savings) is “£5,000”.
(2) Accordingly, section 21 of that Act (indexation) does not apply in relation to the starting rate limit for savings for that tax year.
And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.
5. Basic rate limit and personal allowance (future years)
Question put,
That (notwithstanding anything to the contrary in the practice of the House relating to the matters that may be included in Finance Bills) provision may be made taking effect in a future year for each of the following amounts to remain at the amount specified for the tax year 2021-22—
(a) the amount specified in section 10(5) of the Income Tax Act 2007 (basic rate limit), and
(b) the amount specified in section 35(1) of that Act (personal allowance).