Oral Answers to Questions
Sajid Javid Excerpts(10 years, 6 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Iain Stewart (Milton Keynes South) (Con)
1. What steps he has taken to promote national lottery funding to sport, heritage and arts groups in the past 12 months.
The Secretary of State for Culture, Media and Sport (Sajid Javid)
Through the work of the national lottery promotions unit and individual national lottery distributors, we continue to raise awareness of funding for good causes. Demand for lottery funding continues to outstrip supply, with over £1.5 billion spent on national lottery projects in just the past 12 months.
Iain Stewart
The Heritage Lottery Fund recently made a large contribution to the new visitors centre at Bletchley Park in my constituency and also paid for the restoration of some of the old codebreaking huts. May I invite my right hon. Friend to visit Bletchley Park to see for himself what a vital role the Heritage Lottery Fund plays in preserving the heritage of the country?
Sajid Javid
I have visited Bletchley Park a number of times, as I am sure all hon. Members have done, to look at its vivid story and see how that is brought to life. I would be more than happy to do so again. It is a fitting tribute to the remarkable men and women who worked there, including a wonderful woman in my own constituency, Betty Webb, who served there. I am delighted that Bletchley Park has received funding from the Heritage Lottery Fund for its restoration. My hon. Friend is right to give credit to John Major, as he has done in the past, for setting up the fund.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
The Secretary of State may know that as chair of the John Clare Trust, I have been the beneficiary of quite a lot of Heritage Lottery funding. I am delighted with it and would like more for projects going forward in my constituency, but will the right hon. Gentleman remember that it does not replace a Government committed to culture and heritage?
Sajid Javid
I am pleased to hear that the hon. Gentleman supports the work that the fund is doing for the causes that he holds dear, which are very good causes. The principle of additionality is very important and the distributors must adhere to it at all times.
Tracey Crouch (Chatham and Aylesford) (Con)
The Secretary of State will be aware that alongside the national lottery, society lotteries contributed £145 million to good causes in 2012-13 and could provide a lot more if the prizes, draw and turnover rules were deregulated. His Department has long promised a consultation on this but has yet to publish it. In the light of the recent Centre for Economics and Business Research report on society lotteries, can he tell the House when the consultation might come?
Sajid Javid
Changes in lottery and gambling markets have made it clear to us that the consultation on society lotteries should be more wide ranging than we had previously thought. The Gambling Commission is providing us with further information and advice, and we are planning to conduct the consultation later this year.
Helen Goodman (Bishop Auckland) (Lab)
The Arts Council announced this week that 99 organisations will be financed solely by the national lottery and it has to cut support to 58 other arts organisations because of the huge cuts in the Department. Local authorities have also been forced to reduce support to arts organisations. Given that London gets 20 times as much philanthropic money per person as the rest of the country, does the Secretary of State agree with the statement from the Under-Secretary of State for Culture, Media and Sport, the hon. Member for Wantage (Mr Vaizey) that arts organisations that cannot raise philanthropic funds are totally misguided and “pathetic”?
Sajid Javid
The hon. Lady will know that I do not agree with her. She knows that Government grants for arts funding have been cut because the Government of whom she was part left our country with the largest deficit in the industrialised world and left us with very difficult decisions to make. The good news is that the Arts Council receives funding from other sources and, taken together with total funding of almost £3 billion during the life of this Parliament, the level of funding is virtually unchanged from the situation in the previous Parliament.
Mr John Leech (Manchester, Withington) (LD)
Given that many regions, particularly in the north, generate disproportionately more revenue for the national lottery, what further steps will the Government take to ensure that other regions where more money is generated get their fair share of sport, heritage and arts funding?
Sajid Javid
The hon. Gentleman is right to raise that important point about the regional distribution of the funds. It is something we discuss with the lottery, and I shall be taking it up with it further.
Sheryll Murray (South East Cornwall) (Con)
2. What steps he is taking to ensure that superfast broadband is available in remote areas of the UK.
The Secretary of State for Culture, Media and Sport (Sajid Javid)
The Government’s broadband programme will provide superfast broadband to 95% of UK premises by 2017. In February 2014 we announced nearly £3 million in further grant funding to support superfast coverage in Cornwall.
Sheryll Murray
One of my constituents who runs a small business in a not-spot area purchased satellite broadband after being told that they would not get a fibre-optic connection. Can they now bid for some money if Cornwall council is successful to enable other connections, and will it cost people more for any other type of connection?
Sajid Javid
Superfast Cornwall has a satellite broadband offer for premises that currently have slow-speed broadband and are not likely to gain a fibre-optic connection. The grant of almost £3 million that the Government gave in February in phase 2 will help increase coverage. My hon. Friend’s constituent can make an application to Superfast Cornwall, and that will be a decision for it to make. We are making progress on the issue, but I agree that there is much more to do.
Mr Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)
10. Finland and Sweden will cover about 99% of their populations with 4G networks capable of delivering high-speed broadband, but the UK’s model of coverage with 2G and 3G has failed many people in rural and island areas. Will the Secretary of State consider a different approach to 4G for rural areas, including mast-sharing and controls on rents at mast sites, especially as 4G will deliver up to 30 megabits and might wirelessly reach areas that cable broadband might not reach?
Sajid Javid
The hon. Gentleman will be pleased to know that there has been a significant increase in superfast broadband coverage since 2010, rising from 45% to 73%, but there is much more to do. There has also been a significant change in 4G coverage in the UK, which many people use for broadband, as he rightly highlights. For example, O2, which has a licence for 4G, is committed to extending it to 99% of the country.
Stephen Metcalfe (South Basildon and East Thurrock) (Con)
7. Linford and parts of East Tilbury and West Tilbury in my constituency fall between the Tilbury and Stanford-le-Hope exchanges, which means that a small but significant community will not benefit from either the commercial roll-out of superfast broadband or the Government-funded programme. What options do I have to ensure that those residents are not disadvantaged by a geographic anomaly?
Sajid Javid
My hon. Friend will be pleased to know that the Government have announced additional funding of £10.72 million for Essex under phase 2 of our superfast broadband programme. The local project team for Essex should be able to advise him on the revised coverage targets. The Government have also announced eight market testing pilots to explore supply solutions for improving broadband coverage beyond 95%.
Stephen Timms (East Ham) (Lab)
The analyst, Redburn, has pointed out that claims that the UK is doing well on superfast broadband are
“only true using a rather unambitious definition of superfast”.
A number of European countries now have over 20% fibre- to-the-home penetration, with symmetric 100 megabits- per-second services. The Under-Secretary of State, the hon. Member for Wantage (Mr Vaizey), told me in a written answer on 23 June that he does not know how much of that we have in the UK, but the industry estimates penetration to be about 0.5%. Surely we need to be doing much better.
Sajid Javid
The right hon. Gentleman will be pleased to know that superfast coverage in the UK is the highest among the EU5 countries; it is higher than Germany, higher than Spain, five times higher than Italy and three times higher than France.
Mr Alan Reid (Argyll and Bute) (LD)
I was pleased when the Government announced the awarding of the contract to look into ways of using satellite to bring superfast broadband to remote areas of Scotland that fibre-optic cables cannot reach. It is very important that that work is done as soon as possible. What time scale does the Minister envisage for bringing superfast broadband to remote areas of the highlands and islands by satellite?
Sajid Javid
These pilots began in June, so they are very recent and it will take a number of months before any results are known. We have deliberately picked a number of different companies with different types of technology to ensure that we learn as much as we can. I envisage that we will have more information in six months.
Dr Thérèse Coffey (Suffolk Coastal) (Con)
3. What steps he is taking to support the tourism industry.
The Secretary of State for Culture, Media and Sport (Sajid Javid)
The tourism industry is central to the Government’s long-term economic plan, which is why we are investing over £177 million, including partner funding, in the GREAT campaign and other international and domestic marketing campaigns. We recently re-launched the Tourism Council, a partnership between industry and the Government.
Dr Thérèse Coffey
The Suffolk coast is well known as a very attractive place to visit, with its open skies, beaches and cultural offerings. You are certainly most welcome—both you, Mr Speaker, and the Secretary of State—as the shadow Secretary of State will know. However, also adding to the long-term economic plan will hopefully be the construction of Sizewell C. My local businesses have understandable concerns about the impact of the construction phase on tourism in the area. Can he offer any helpful advice?
Sajid Javid
I can tell my hon. Friend that I will be more than happy to visit. I am sure that Mr Speaker has been a number of times himself. The Suffolk coast is indeed beautiful—it is a jewel in Britain—and everyone should be encouraged to visit. She will know that I cannot comment on any planning application that is taking place, but she will be pleased to know that the Government will continue to work hard to promote Suffolk through VisitEngland and other organisations. The wonderful Suffolk coastline featured in VisitEngland’s “Coastal Escapes” marketing campaign was funded by the regional growth fund.
Jonathan Edwards (Carmarthen East and Dinefwr) (PC)
The NATO summit in Newport provides an opportunity to promote Wales to the world, boosting tourism and the wider economy. What discussions are the UK Government having with the Welsh Government to ensure that the summit has a distinct Welsh flavour?
Sajid Javid
We work very closely with the Welsh Government on these issues. There is a lot to be gained from cross-co-operation, and a number of initiatives are in place.
Damian Hinds (East Hampshire) (Con)
8. Inbound tourism is as strategic a sector for this country as advanced manufacturing of pharmaceuticals, and the Tourism Council presents an opportunity for it to punch its weight. Will my right hon. Friend set his sights high in terms of productivity, skills development, and co-operative working on distribution channels in marketing this country to the world?
Sajid Javid
I absolutely agree. My hon. Friend will be pleased to know, as will other hon. Members, that last year inbound tourism hit a new record high of 33 million visitors spending a record amount of £21 billion in the UK. He rightly points out the importance of improving skills, and we are working with the Tourism Council on that.
Clive Efford (Eltham) (Lab)
Despite recent sporting setbacks, our enthusiasm remains at fever pitch. Will the Minister, like me, be among the 3 million people it is anticipated will go to watch the start of the Tour de France this weekend? The Grand Départ will showcase some of Britain’s most beautiful countryside. Will he join me in wishing Yorkshire every success in hosting this event and wish every participant well, and, of course, success to our British riders? What is he doing to ensure that the event goes smoothly and that the region continues to benefit from the boost to tourism that it will get from hosting this event?
Sajid Javid
I agree with the hon. Gentleman about the importance of the Grand Départ taking place in Yorkshire. It is a very important sporting moment for the UK. I will be visiting on day one, on Saturday, and I look forward to seeing him there. The Prime Minister will also be visiting, and the sports Minister, my hon. Friend the Member for Maidstone and The Weald (Mrs Grant), will be helping as well.
Mark Menzies (Fylde) (Con)
14. Fylde is the golf capital of Lancashire, with outstanding courses including the Open championship course at Royal Lytham and St Annes. What are the Government doing to ensure that Britain is getting the most out of this lucrative section of the tourism market?
Sajid Javid
My hon. Friend will be pleased to know that VisitBritain has a specific initiative on promoting golf throughout the UK. That campaign is showing early signs of working, but we will be looking to see what more can be done.
Charlie Elphicke (Dover) (Con)
5. If his Department will commission research on methods of improving mobile telephone coverage; and if he will make a statement.
The Secretary of State for Culture, Media and Sport (Sajid Javid)
We need to improve mobile coverage in the UK, and I have been discussing with Ofcom and the mobile network operators what more can be done. The mobile infrastructure project will extend coverage to remote and rural areas that currently have no coverage.
Charlie Elphicke
Many visitors from the European Union travel by ferry to my constituency of Dover and, because of international roaming, those from France get better mobile coverage than my own constituents. How can this be?
Sajid Javid
As usual, my hon. Friend makes a very good point. It is true that French nationals who visit the UK get better coverage than his constituents because of international roaming. I encourage operators in the UK to go further and I am discussing the issue with mobile operators and Ofcom. No firm decisions have been taken at this point, but it is a very important issue.
Mr John Whittingdale (Maldon) (Con)
May I commend my right hon. Friend on his efforts to extend mobile coverage, but is he aware that many of my constituents have been without any mobile coverage for nearly three weeks due to Vodafone having to remove a mast from premises that the landlord required it to vacate? Will he consider looking at the electronic communications code to see whether it can be strengthened to give the same sorts of rights that already exist for other utilities, such as water and electricity?
Sajid Javid
I was not aware of that particular issue in my hon. Friend’s constituency, but now he has raised it I will certainly look into it and see whether we can help. The electronic communications code is a very important issue and I am looking into it right now, because I agree that it was set up for a different age and there need to be significant changes.
Miss Anne McIntosh (Thirsk and Malton) (Con)
6. What comparative assessment he has made of the extent of broadband coverage in the UK and other EU member states.
The Secretary of State for Culture, Media and Sport (Sajid Javid)
Although England’s footballers and Andy Murray have sadly fallen, our sporting season is still in full swing. This weekend sees the climax of the Wimbledon championships, the grand prix at Silverstone and the Tour de France Grand Départ, as we have just heard. Politicians who wish sports stars well seem to jinx them, so I would like to take this opportunity to wish all of Mark Cavendish’s rivals the best of luck.
Diana Johnson
The additional £5 million arts funding allocated to Hull this week is very welcome, but is a drop in the ocean compared with the money that goes to some of our national institutions, such as the National Theatre, which gets £18 million a year. What pressure can the Secretary of State bring to bear on national institutions to make sure they do everything they can to support our national city of culture for 2017, bearing in mind that Hull has had a 25% cut in our council funding during this Parliament?
Sajid Javid
I know that the hon. Lady is as excited as I am that Hull is the city of culture for 2017. It won against strong competition and has done extremely well. She is right to point out the recent announcement of additional funding from the Arts Council. It also announced that Hull will become a major partner museum, which is a significant step forward. The Hull initiative for 2017 and beyond will boost the local economy and jobs, which I am sure she will welcome. I am happy to look into what more can be done to help.
Eric Ollerenshaw (Lancaster and Fleetwood) (Con)
T2. Given BT’s virtual monopoly in contracts for superfast broadband and the problems with that company that have been raised by hon. Members today and previously, is it not about time that the Government held an inquiry into its performance, or would that be better done by the competition authorities?
Sajid Javid
As the right hon. and learned Lady points out, there was rightly a cross-party approach on this important issue. The key to that consensus was that whatever transpired needed to be independent of Government and that there needed to be a self-regulatory body. I will not comment on anyone who is appointed to the recognition panel, because I do not believe that that is a job for Government. It is an independent process and the Government, including my Department, have no role in it. It would therefore not be proper for me to talk about any individual.
As for whether a body should apply for recognition, it is up to the body to decide whether the incentives that we have put in place are enough to encourage it to join. The Government have done what they set out to do.
Andrew Bingham (High Peak) (Con)
T3. Last week, I organised a music skills day at Glossopdale community college in my constituency in conjunction with UK Music, at which more than 100 students from across High Peak learned about the different skills in the industry. The Secretary of State will know that the creative industries are a big economic force in this country and earn about £70 billion each year for the economy. The music skills event gave young people information about the opportunities to work in that sector. Will he say what else is being done to provide even more support to the creative industries across the country?
Sajid Javid
My hon. Friend makes an important point. I join him in welcoming the work of UK Music in promoting careers in that industry to young people. Just this week, a report showed that the creative industries have added more than £70 billion to the economy over the past year and that they employ more than 1.7 million people. Employment is growing five times faster in that sector than in the rest of the economy. Just yesterday, I helped to launch the industry-led creative industries strategy, which is full of more good ideas.
Mr Nicholas Brown (Newcastle upon Tyne East) (Lab)
T4. Will the Minister join me in congratulating the excellent Tyne and Wear Archives and Museums and other arts organisations based in Newcastle upon Tyne on their successful Arts Council bids? In doing so, will he acknowledge that there is still a problem with the disproportionate amount of private sector arts funding—the figure is 82%—that is drawn into the capital and not to the regions of England, and consider the remedy that is set out in “Rebalancing Our Cultural Capital”? If he has not read that report, I commend it to him.
Mr Nigel Evans (Ribble Valley) (Con)
I enjoyed visiting that wonderful rainbow festival, London Pride, over the weekend in our capital. It has become a magnet for hundreds of thousands of tourists, who enjoy the rich diversity of the United Kingdom.
With the ability to convert civil partnerships into marriage later this year, does the Secretary of State believe that there is even more to celebrate in pride festivals throughout the UK in the coming months and years?
Sajid Javid
My hon. Friend makes a good point, and I agree with him. He may be interested to know that the Government will today lay the draft regulations for converting civil partnerships to marriage. The Government previously said that the cost of conversion would be calculated on a cost recovery basis, and that is correct. We had indicated about £100, but I am happy to say that, in almost all cases, the cost will be £45. It would be unfair to charge couples who were in civil partnerships before same sex marriage was available, so I am pleased to announce that my right hon. Friend the Home Secretary has agreed to waive the conversion fee for one year from 10 December.
Jim Shannon (Strangford) (DUP)
Tourism is important to my constituency of Strangford. It definitely brings jobs and opportunities, as promoted by the Northern Ireland Tourist Board. Will the Minister consider joint tourism promotions with the Northern Ireland Tourist Board so that we can benefit from tourism throughout the United Kingdom of Great Britain and Northern Ireland?
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
I forgot to welcome the Secretary of State, so I do so warmly and ask whether he will support our all-party effort to get at least 150 MPs to read a poem of the countryside, and raise funds to get kids from poorer parts of our country out to the countryside this year?
Sajid Javid
I certainly will; that is an excellent initiative. Since A. E. Housman came from my constituency, that would be a good start.
Peter Aldous (Waveney) (Con)
There is concern that the Government’s approach to allocating funding for the superfast broadband extension programme will leave most rural areas at a disadvantage. What help and assurances will the Minister give to constituents in the villages of Rumburgh, St James and Ringsfield that they will not be penalised?
Huw Irranca-Davies (Ogmore) (Lab)
7. What steps she is taking to ensure that mothers' names are included on marriage certificates; and if she will make a statement.
The Minister for Equalities (Sajid Javid)
The content of marriage registers has not changed since civil marriage was introduced in 1837, so it is about time we took a further look. I have discussed this matter with my right hon. Friend the Home Secretary, and we are currently considering a range of options.
Huw Irranca-Davies
The Minister has referred to a range of options. Given that Labour changed the law in respect of same-sex couples and adoption back in 2002, what consideration has he given to ensuring that any changes that may be made to marriage certificates reflect the fact that many individuals now have legal parents of the same sex?
Sajid Javid
I agree with the hon. Gentleman, who has raised a very important point. When the rules were drawn up in 1837, equality was not a priority for our society. Today, thankfully, it is, so those are just the kind of changes that we are considering.
Mrs Sharon Hodgson (Washington and Sunderland West) (Lab)
Can the Minister tell us how much it would cost to bring marriage certificates into the 21st century? If he cannot, why are his colleagues in the Home Office team saying that it would be too expensive? What price do he and the Government place on equality?
Sajid Javid
If the hon. Lady had been listening carefully, she would have already heard the answer to that question; I talked about civil partnerships earlier. We have rightly said that when people are converting civil partnerships into marriage, having entered into those partnerships before same-sex marriage was available, we will waive the fee. I think that that demonstrates the Government’s priorities.
Oral Answers to Questions
Sajid Javid Excerpts(10 years, 8 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Michael Fabricant (Lichfield) (Con)
1. What progress has been made on the delivery of broadband in rural areas; and if he will make a statement.
The Secretary of State for Culture, Media and Sport (Sajid Javid)
The Government’s broadband programme will increase superfast broadband coverage to 95% of UK premises by 2017. The programme has already delivered superfast broadband to more than 500,000 premises. A further 20,000 premises are gaining availability per week and that number is set to rise to 40,000 per week by the summer.
Michael Fabricant
Who would have thought just a month ago, when my right hon. Friend the Member for Bromsgrove (Sajid Javid) and I were sharing a drink at Birmingham City university, that he would be where he is now? I congratulate him on his appointment on behalf, I am sure, of both sides of the House.
My right hon. Friend talks about superfast broadband and there has been huge progress, but I am afraid that there are still large areas of the country where there is no broadband at all—the not spots. When will broadband coverage be as universal as electricity supplies?
Sajid Javid
I thank my hon. Friend for that warm welcome. I remember that drink well. He mentioned my constituency of Bromsgrove. Like his constituency, it is semi-rural and there is naturally concern among my constituents about broadband coverage. He will therefore be pleased to know that the Government are providing £780 million of central funding to support superfast broadband, so that 95% of UK premises can enjoy it by 2017. We have also launched a £10 million fund to explore with suppliers broadband solutions for the other 5%.
Helen Goodman (Bishop Auckland) (Lab)
I begin by congratulating the Secretary of State on his appointment. We hope that he enjoys the next year in his job. This might be the first time that he has answered questions on broadband roll-out, but so great is the concern across the House that this is the 494th time that such questions have been asked. This week, we learned that no one in Oxfordshire has applied for the vouchers under the lacklustre £150-million super-connected cities programme. Why does he not adopt our proposal of switching half of those funds into helping the 15 million people who are digitally excluded?
Sajid Javid
Again, I thank the hon. Lady for her warm welcome. We looked at the previous Government’s proposals. The reason we changed the policy was that, frankly, it was not working. Already under this Government, superfast broadband coverage has risen from about 45% when we came to office to 73%. The UK has better coverage than the other EU5 countries. I hope that she will join us in implementing these policies.
Dr Thérèse Coffey (Suffolk Coastal) (Con)
16. The broadband programme in Suffolk is going rather well, but to reach the 95% figure and cover places such as Wangford and Yoxford, we need a bit more money from the Government. I hope that the Secretary of State and the Under-Secretary of State for Culture, Media and Sport, my hon. Friend the Member for Wantage (Mr Vaizey) will welcome our representations.
Sajid Javid
My hon. Friend is passionate about this issue and has brought it up a number of times. I would be happy to meet her to discuss it further and to see how we can better use the existing resources that are available.
Simon Hart (Carmarthen West and South Pembrokeshire) (Con)
12. Although the roll-out of broadband to rural areas is going at some pace, it is going rather slowly in parts of rural Wales. I wonder whether the Secretary of State is happy with the manner in which the Welsh Assembly is doing this and whether it is meeting his expectations for the whole of the UK.
Sajid Javid
My hon. Friend makes his point well. Well over 100,000 premises in Wales have been connected to superfast broadband under this Government, but obviously there is a need to do more. I am keen to consider ways in which we can make the process quicker.
Mr David Heath (Somerton and Frome) (LD)
I also welcome the Secretary of State to his new post.
The Under-Secretary of State, the hon. Member for Wantage (Mr Vaizey), was in my constituency a couple of weeks ago and may have heard one or two things from my constituents about the hard-to-reach rural areas where broadband will be difficult to install. Will he look again at the requirement for match funding for very rural areas? Quite simply it will not work, by definition, in areas where there are very few people.
Sajid Javid
I can tell my hon. Friend that the rural broadband programme is making good progress. I accept that it is patchy in certain parts of the country, but a number of projects have gone live as the roll-out has begun. I will examine the issue that he raises, but the current evidence shows the rate of connectivity rising and suggests that the match funding programme is progressing well.
Julian Smith (Skipton and Ripon) (Con)
9. We are grateful for the Government funding for superfast broadband in North Yorkshire, and we are well on the way to getting high penetration across the country. One way in which we can reach our most remote areas is through technology, and BT has a new, smaller fibre box, but it needs special regulatory approval. What can the Secretary of State do to help us move that process on so that we can deliver to our most remote areas?
Sajid Javid
My hon. Friend rightly highlights the significant role that BT plays as a huge stakeholder in rolling out superfast broadband around the country. I have already had a meeting with BT in my new role, and I look forward to having further meetings to see how the process can be taken forward.
Mr Ben Bradshaw (Exeter) (Lab)
2. If he will meet alleged victims of unethical and unlawful conduct by the press to discuss how to prevent such conduct in the future.
The Secretary of State for Culture, Media and Sport (Sajid Javid)
I support freedom of the press while wanting to ensure that redress is available when mistakes are made, and I will welcome representations from a range of stakeholders who have an interest in the matter. My meetings will, of course, be a matter of public record through the Cabinet Office in the usual way.
Mr Bradshaw
I also welcome the right hon. Gentleman to his new job. I think it is probably the best job in government, and I hope he enjoys it.
I was not quite sure from the right hon. Gentleman’s answer whether he will meet victims. I hope he will, because as he will be aware, they are not happy with what has happened since the Leveson report and they are certainly not happy with attempts by some newspapers to set up a replacement for the discredited Press Complaints Commission. Does he agree with the Prime Minister, who said on oath to the Leveson inquiry that the test is
“not: do the politicians or the press feel happy with what we get? It’s: are we really protecting people who have been caught up and absolutely thrown to the wolves by this process”?
Sajid Javid
I know that the right hon. Gentleman feels passionately about the issue, and I am sure he recognises that since Lord Leveson’s report was published, we have made significant progress on the issue on a cross-party basis. As he knows, the royal charter has now been granted, and it is now for the press to decide what they wish to do next.
On the issue of meeting alleged victims, if they were to make a formal request, I would give it serious consideration.
Paul Uppal (Wolverhampton South West) (Con)
I confess that, like many Members, I am occasionally a political anorak and watch political campaigns. Over the past few weeks I have watched the Indian elections, and particularly the media coverage over there. May I impress upon my right hon. Friend the point that although the British press is far from perfect, we have to be mindful of throwing out the baby with the bathwater?
Sajid Javid
My hon. Friend makes an important point. As I have said before, a number of industries have bad apples and make mistakes, but we must recognise that the freedom of the press is a cornerstone of our democracy.
Chris Bryant (Rhondda) (Lab)
But it was not just one bad apple, was it? It was not one rogue reporter, it was systematic abuse of people who were the victims of crime themselves or had lost family members in Afghanistan. I hope the Secretary of State will understand that those victims of crimes and unethical conduct are deeply troubled by the creation of the Independent Press Standards Organisation, because it has been cobbled together by two Conservative Members of the House of Lords and is still a case of the press marking their own homework.
Sajid Javid
The hon. Gentleman will know that the industry and the Government agree, as I believe do all parties in this House, that self-regulation is the way forward. That was at the heart of the Leveson principles. As I said, the royal charter has been granted and the press have responded by setting up a self-regulator, and it is now for them to decide how they wish to take that further.
Nia Griffith (Llanelli) (Lab)
3. What steps he plans to take to reduce simulated gambling on social media sites.
Mrs Sharon Hodgson (Washington and Sunderland West) (Lab)
5. What steps he is taking to prevent tickets for the 2015 rugby world cup being purchased by organised syndicates of touts.
The Secretary of State for Culture, Media and Sport (Sajid Javid)
I am grateful to the hon. Lady and the members of the all-party parliamentary group on ticket abuse for the important work they have done on this issue. However, while I am aware of the concerns of the rugby world cup organisers, there is no evidence to suggest that introducing legislation to prohibit ticket touting is needed to deliver a successful event this year.
Mrs Hodgson
I know that the Secretary of State has his own opinions on this issue, but he will no doubt have heard this question being answered in the same way month after month. The Government seem to think that there will not be a problem, but if they bothered to look online, they would see that there already is a problem. Thousands of tickets for the rugby world cup are already for sale online at many times face value. If the Secretary of State will not accept the Opposition Front Bench’s offer of co-operation in banning the unauthorised resale of tickets, will he at least accept the recommendation of the all-party group on ticket abuse that calls for greater transparency and adequate protection for consumers?
Sajid Javid
I know that the hon. Lady is very passionate about this issue and I commend her for her leadership, alongside my hon. Friend the Member for Hove (Mike Weatherley), of the APPG on ticket abuse. She will know that the Culture, Media and Sport Committee looked at this issue in 2008, as did the previous Government in 2009. I agree with their broad conclusion that there is no need for further legislative action. However, I would be more than happy to sit down with the hon. Lady and discuss her concerns further.
Jesse Norman (Hereford and South Herefordshire) (Con)
6. What steps he is taking to help football clubs in financial difficulty.
Pauline Latham (Mid Derbyshire) (Con)
10. What steps he is taking to ensure that a cultural programme forms part of the first world war commemorations.
The Secretary of State for Culture, Media and Sport (Sajid Javid)
Culture has always been absolutely central to how we understand and try to make sense of the first world war and, in the same way, it will be central to the centenary commemorations. The 14-18 NOW programme will deliver a UK-wide programme of cultural events in 2014, 2016 and 2018. It will inspire people of all ages, and from all backgrounds, to take part in the centenary.
Sheryll Murray
Will my right hon. Friend join me in congratulating my local museums in Saltash and Liskeard, which provide boxes for schools to enhance the cultural experience of young people, so that they can better understand what happened in world war one? I recommend that he visit the excellent display in Saltash on the Suffragette movement, a campaign important both at the time and for women like me today. Does he agree that adequate funding must be provided to help museums progress with such wonderful initiatives, lest we forget?
Sajid Javid
Local cultural institutions have a key role to play in the first world war centenary commemorations. I am delighted to hear about the contribution from Saltash. As my hon. Friend says, it reminds us of the vital contribution that women made during the war. I will certainly be interested in a visit.
Pauline Latham
I, too, congratulate my right hon. Friend on his appointment and wish him well. Can he reassure me that this cultural programme will be truly UK-wide, with a chance for people in all parts of the country to join in?
Sajid Javid
My hon. Friend raises a very important point. I can reassure her that the 14-18 NOW summer 2014 season will be truly UK-wide, with events across the country for all people to take part in. The ambition is to reach at least 10 million people over the four years of the cultural programme.
Dan Jarvis (Barnsley Central) (Lab)
I welcome the Secretary of State to his new post. I look forward to working with him and with those on my Front Bench in the coming months to ensure that we deliver a fitting commemoration. It is of course right that we focus on the service and sacrifice of those who lost their lives on the front line, but we should also ensure that we recognise the contribution of men and women on the home front who toiled in the mines and the factories, worked the land and cared for the wounded. Will the Secretary of State say how we can ensure that their voices are heard?
Sajid Javid
I thank the hon. Gentleman for his kind words and for the support he has given to the centenary commemorations—I really welcome that cross-party support. He raises a very important point. It is important to ensure that the efforts on the home front are properly commemorated, and I am happy to discuss that with him further if he thinks we can do more.
Mark Pawsey (Rugby) (Con)
8. What assessment he has made of the potential benefits of encouraging sports-related tourism.
Debbie Abrahams (Oldham East and Saddleworth) (Lab)
T1. If he will make a statement on his departmental responsibilities.
The Secretary of State for Culture, Media and Sport (Sajid Javid)
It is a pleasure to join you for my first oral questions as Secretary of State, Mr Speaker. The Department continues its work in a large number of areas, including but not limited to extending sporting and cultural opportunities to as many people as possible, promoting the creative industries, encouraging both international and domestic tourism and delivering a transformation of broadband.
Debbie Abrahams
I welcome the Secretary of State to his new role. We know of the multiple benefits of sport in all its forms, but particularly of the social and health benefits. However, a recent survey by the Women’s Sport and Fitness Foundation found that more than half of girls are put off physical activity as a result of their experiences in school. I appreciate that measures are already in place to provide support, but what more will the Secretary of State commit to doing to increase women’s participation—or is support for women something that an increasingly male-dominated Cabinet does not like to provide?
Sajid Javid
The hon. Lady has asked questions about this issue before and I know she is passionate about it. She has made an important point, and it is a shame that she had to finish with party political point scoring on what is a very important issue. She will be aware that the Government have taken a number of initiatives in this area already, and despite her attempt to make a petty point at the end, I will be happy to meet her if she wants to discuss any ideas she has about what more we can do in this important area.
Andrew Bingham (High Peak) (Con)
T2. I am sure that the Minister will be interested to read the forthcoming report from the RadioCentre, called “Action Stations”, on the output and impact of commercial radio. I am proud that my local commercial radio station, High Peak Radio, is mentioned in the report, which also outlines the economic benefits of commercial radio: every £1 invested yields £8 for the advertisers. The report will be officially launched on 13 May and I am sure the Minister will study its findings, but does he agree that commercial radio plays a significant role not just in the country’s economy but in supporting communities such as mine in High Peak?
Ms Harriet Harman (Camberwell and Peckham) (Lab)
I add my congratulations to the right hon. Member for Bromsgrove (Sajid Javid) on his promotion. His elevation to a seat at the Cabinet table sends out a strong signal that in this country, our politics must be for people from all communities, all ethnicities and all walks of life, and I wish him well in his job.
As the right hon. Gentleman takes over leadership of this important Department, we will be urging him to fight hard for the arts and to promote the crucial role that the BBC plays in the cultural life of this country. I want to ask him about young people and music. Creativity is being squeezed out of the curriculum; fewer pupils are taking music at GCSE and A-level; music services have been cut by almost 30%; and now the Department for Education wants to cut a further 12% of music resources available to schools through the education services grant. Will he intervene with the Education Secretary and make the case for music in schools?
Sajid Javid
I thank the right hon. and learned Lady for her warm welcome. The work that she did when in government, especially on equalities, has had a lasting impact and I welcome much of it. Music and arts in schools are important, and I have already had a discussion with my right hon. Friend the Secretary of State for Education on that issue. Action that we have already taken, such as ring-fencing funding for music in schools, is very helpful, but I want to see whether there is more we can do.
Simon Hart (Carmarthen West and South Pembrokeshire) (Con)
T4. Mobile phone coverage in parts of Wales is as bad as coverage in places in Africa, Kazakhstan and the Alps. Does the Minister have a view on when we can expect a 20th-century service in Wales, let alone a 21st-century one?
Charlie Elphicke (Dover) (Con)
T6. Many private sector companies are big supporters of the arts in Britain. Will the Secretary of State tell the House how important he believes that support to be?
Sajid Javid
As usual, my hon. Friend raises an important point. Support from the corporate sector for the cultural sector is very important. It amounted to around £110 million last year, almost a fifth of total investment. In the past couple of weeks, I have been to the Globe, which is supported by Deutsche Bank, and the Matisse exhibition at Tate Modern, which is supported and sponsored by Bank of America. Just yesterday I went to the Vikings exhibition at the British Museum, which is supported by BP. It was held in a new exhibition hall, which received the majority of its funding from the Sainsbury family.
Julie Hilling (Bolton West) (Lab)
Lowton girls group came to talk to me about its concerns that music videos portraying sex and violence are being watched by children and young people. Why will the Government not legislate for age ratings for music videos online?
The Minister for Equalities (Sajid Javid)
My hon. Friend is absolutely right to highlight the significant contribution of ethnic minority soldiers to Britain’s war effort. He may be interested to know that just last week I made a private visit to Ypres; I went to the Menin gate memorial remembrance service and saw for myself that among the names of soldiers whose graves are unknown, there were many from the Indian subcontinent.
Rehman Chishti
I thank the Minister for Equalities for that answer and welcome him to his position. More than 1 million people from ethnic minorities served our country in the first world war, and 12 soldiers from the Indian subcontinent have been awarded the Victoria Cross for valour. What are the Government doing to ensure that Victoria Cross recipients from minority communities born in other countries are properly commemorated?
Sajid Javid
My hon. Friend raises a very important point, and I am pleased to tell him that recipients of the Victoria Cross who were born abroad will be commemorated not only in their country of birth, but here in Britain.
Keith Vaz (Leicester East) (Lab)
I warmly congratulate the Secretary of State on his appointment. This is the first time in the history of this country that a majority of Ministers in a Department are from the ethnic minority communities—all with different hairstyles, but all appointed on merit. I strongly support what the hon. Member for Gillingham and Rainham (Rehman Chishti) said. Could we have a physical representation of that, and may I offer Leicester as a city in which a monument could be put up to those who served in the war?
Sajid Javid
I thank the right hon. Gentleman for his warm words, despite his comments about my excellent hairstyle. He makes an important point about a monument—I cannot think why he picked Leicester—and that is certainly worth looking at.
Paul Uppal (Wolverhampton South West) (Con)
My great-grandfather fought in the great war, a fact that I became aware of only in the past decade. May I impress on my right hon. Friend that as well as a written record of history, there is often an oral history of acts of great bravery in the Indian and, specifically, Sikh regiments?
Sajid Javid
I thank my hon. Friend for the question, and for the contribution his family made to the great war—as did, obviously, many other families, but especially, as he highlighted, people of ethnic minority backgrounds. He has made an important point, and I will certainly look at that.
Jim Shannon (Strangford) (DUP)
The Commonwealth contribution to the first world war was significant. In particular, one in 10 people who served came from undivided India. In Northern Ireland we have a very large Indian community. What discussions has the Minister had with the bodies responsible in Northern Ireland to ensure that the community’s significant contribution is commemorated?
Sajid Javid
The hon. Gentleman raises an important point. He will know that more than 70,000 soldiers from the Indian army made the ultimate sacrifice on behalf of Britain in the great war. With respect to Northern Ireland, I have not had any discussions so far in my new role, but I will certainly raise the matter at the earliest opportunity.
Simon Wright (Norwich South) (LD)
4. What steps he is taking to reduce homophobic, biphobic and transphobic bullying in schools.
Equitable Life Payment Scheme
Sajid Javid Excerpts(10 years, 9 months ago)
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The Financial Secretary to the Treasury (Sajid Javid)
As of 31 March 2014 the Equitable Life payment scheme has made payments totalling £901 million to 860,972 policyholders. The scheme has published a further progress report, which can be found at: http://equitablelifepaymentscheme.independent.gov.uk
The scheme has gone to significant lengths to trace eligible policyholders, and since the last report in January 2014 the scheme has traced over 110,000 additional policyholders. Over the coming months the scheme will be reviewing its records to ensure that all proportionate and effective actions to trace the remaining policyholders have been completed before the scheme shuts.
Any holders of a policy who believe themselves to be eligible should call the scheme on 0300 0200 150. The scheme can verify the identity of most policyholders on the telephone, which means any payment due can usually be received within two weeks.
Dormant Bank and Building Society Accounts Act
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The Financial Secretary to the Treasury (Sajid Javid)
The Government are today publishing the review of the Dormant Bank and Building Society Accounts Act 2008. As set out in the legislation, HM Treasury is required to undertake a review and to lay this before Parliament within three years from the date when a reclaim fund is first authorised.
A copy of the review published today is available from the Library of the House and on the HM Treasury website.
Lloyds Banking Group
Sajid Javid Excerpts(10 years, 9 months ago)
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The Financial Secretary to the Treasury (Sajid Javid)
Today the Government have successfully completed the sale of a second tranche of shares in Lloyds Banking Group.
The Chancellor received advice from UK Financial Investments Ltd (UKFI) yesterday that it would be appropriate to begin the process to sell a second part of the Government’s shareholding in Lloyds.
Overnight the Government were able to place 7.78% of Lloyds shares with investors at a price of 75.5p. The proceeds from that sale total approximately £4.2 billion.
The Treasury estimates that the second sale has reduced the national debt by £788 million and that in total the programme of sales of Lloyds shares to date has reduced the national debt by just under £1.4 billion.
Future sales will always be subject to value-for-money considerations and market conditions.
Amendment of the Law
Sajid Javid Excerpts(10 years, 9 months ago)
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Ed Balls
The Chancellor promised that he would abolish the structural deficit in this Parliament and he is going to fail absolutely. We went into the financial crisis with a lower national debt than America, France, Germany and Japan. The deficit went up because of a financial crisis and the failure of the banks. There was a recovery in 2010 and his failed policies choked it off. That is the reality. Let me tell the hon. Gentleman the facts. The Chancellor has already borrowed more in the three years of this Government than the last Labour Government borrowed in 13 years. Perhaps he should be apologising for his abject failure on the deficit, the debt and growth. That is what we should be hearing from him.
It will take the next Labour Government to clear up the mess left by this Chancellor. The Government have failed to get rid of the deficit. We will have to do the job. That is why we have been clear that we will balance the books in the next Parliament. We will have the current budget back in surplus and the national debt falling as soon as we can and before the end of the next Parliament. We will abolish his discredited idea of rolling five-year fiscal targets, which he never meets, and instead legislate for tough fiscal rules.
I will tell you what else we will do, Mr Deputy Speaker. I hope that the Chancellor will reflect on what I am about to say and think again.
Ed Balls
I do not think he will either. May I ask the Financial Secretary how it is going since his comments on women and the Monetary Policy Committee? Is he still revelling in that? If things were done on merit, he would be out on his ear.
I hope that the Chancellor will think again and join me, the Chair of the Treasury Committee and the Chief Secretary to the Treasury in supporting reforms to allow the Office for Budget Responsibility to audit independently the spending and tax commitments in the manifestos of the main political parties before the next election. We know from the head of the OBR that that can be done. Let us be honest: it is all a matter of political will. The problem with the Chancellor is that he wants to set traps, but he cannot be transparent on the matter of OBR audits. Why does he not think again, join the cross-party consensus and do the right thing?
The Financial Secretary to the Treasury (Sajid Javid)
It is always a pleasure to follow the hon. Member for Birmingham, Ladywood (Shabana Mahmood). This is the first time I have had an opportunity to speak in this House since learning of the sad death of the right hon. Tony Benn. With your permission, Madam Deputy Speaker, I would like to pay a short tribute to him. As a young boy growing up in Bristol, even though I did not necessarily agree with much of what he said, I admired him as a man of principle, passion and compassion. I extend my condolences to his family and friends.
I begin by thanking hon. Members from both sides of the Chamber for their contributions this afternoon. It has been good to hear some Labour Members actually offering opinions on the Budget’s measures, given their leader’s failure to do so yesterday. In 15 minutes at the Dispatch Box he more or less failed to acknowledge that the Budget even happened.
We should not be surprised. Not a single Labour Member seems to acknowledge the facts when they left office. They left the country with its biggest post-war recession, the largest budget deficit in the G20 and the largest banking bail-out in the world. Their policies destroyed the living standards of millions.
Shabana Mahmood
The Financial Secretary is talking about facts, so will he confirm one fact that his colleague the Chief Secretary to the Treasury failed to confirm yesterday, which is that working people are £1,600 a year worse off under this Government and that they will be worse off in 2015 than they were in 2010?
Sajid Javid
What I will confirm is that people in this country have been hurt because of the great recession that took place as a result of the Labour party’s policies. It was the biggest decline in our GDP in more than 100 years.
I am sure Labour Members will acknowledge that the best way to get our country back up on its feet and to improve the living standards of everyone in the UK is to have a growing economy that creates jobs. That is exactly what yesterday’s Budget continued to do. It is part of our long-term economic plan to give economic security to families across Britain and, through our increase to the personal allowance, to put more money back in the pockets of hard-working people.
Yesterday’s Budget sent a very clear message to all those businesses that are driving our economic recovery that, if they want to invest in new machinery, then, through our extension and expansion of the annual investment allowance, which will give 99% of businesses a 100% allowance, this Government will support them; if they want to manufacture but are concerned about the cost of energy, then, by capping the carbon price support rate, this Government will support them; if they want to export to emerging markets, then, with higher lending at lower interest rates, this Government will support them; and, crucially, if they want to employ, then, not just through our employment allowance, which comes into force next month, but through our extension of the apprenticeship grant for employers—which my hon. Friend the Member for Gloucester (Richard Graham) has referred to—this Government will support them. Those are measures that will help businesses to invest, manufacture, export and employ. As such, I hope that everyone in this Chamber will support them.
Mr Stewart Jackson
On the subject of fairness, which I am sure my hon. Friend is alluding to, is he as pleased as I am that it is the Conservative party in a coalition Government that is tackling tax avoidance by reforming stamp duty in relation to shell companies with residential property? The Labour party did nothing about that in 13 years and it also increased pensions by 75p and cut expenditure.
Sajid Javid
My hon. Friend is absolutely right. It is under this Conservative-led Government that the rich are paying a higher proportion of tax than in each year the previous Government were in office.
Yesterday’s Budget also provided targeted support for some of those industries that are critical for our economy. It showed that we are supporting our construction sector by offering £500,000 to small house-building firms; that we are supporting our oil and gas sector by introducing a new allowance for ultra-high pressure, high-temperature fields, a measure that will increase investment and jobs; and that we are supporting our creative economy by introducing a theatre tax relief and extending our film tax credit, a measure that will build on the astronomical success of films such as “Gravity”. All those measures will put money and trust back into the hands of businesses, and give them the power to invest, expand and employ.
Yesterday’s Budget was all about trust—trust in the imagination and hard work of the British people to turn our economy around, and trust in the fiscal prudence of the British people to take their hard-earned pensions when they want, and to invest and spend them how they want.
Sajid Javid
I am afraid that I do not have time.
Most importantly, the Budget was about trust in British businesses, as was highlighted by my hon. Friends the Members for Dudley South (Chris Kelly), for Poole (Mr Syms), for Stroud (Neil Carmichael) and for Norwich North (Chloe Smith).
Alex Cunningham
I am grateful to the Minister. The IFS has said today that the pension changes are based on “highly uncertain assumptions” that could lead to “market failure”. Would the Minister care to discuss that?
Sajid Javid
The pension changes will give people a choice that they have never had before: it is their pension, and it is their choice.
Our businesses are not, as the Opposition would have us believe, the enemy; they are the reason why our economy is growing faster than any other advanced economy. They are the reason why more than 1.6 million jobs have been created in the private sector during the past four years. Many Opposition Members have spoken today about the importance of bringing down unemployment, on which they are absolutely right to focus. They might have some good ideas about how to do it, so I thought that I would look at the facts. I can report that unemployment went up during Labour’s last term and has fallen under this Government in the constituency of every Opposition Member who has spoken today. For example, in the constituency of the hon. Member for Coventry North West (Mr Robinson), who is not in his place, unemployment went up 98% under Labour, and is down 29% under this Government. In the constituency of the hon. Member for Rutherglen and Hamilton West (Tom Greatrex), it went up 96% under Labour, and is 17% down under this Government. Which Opposition Member saw the largest increase in unemployment? The right hon. Member for Morley and Outwood (Ed Balls) saw a record increase of 184% in unemployment in his constituency during Labour’s last term, when he was in office, but it is down 21% under this Government. As expected, Opposition Members know how to create problems, but they have no idea how to solve them.
This Government trust businesses and want to help them, and we want to help the savers, the doers and the makers. This Budget does all those things, and I commend it to the House.
Ordered, That the debate be now adjourned.— (Mr Gyimah.)
Debate to be resumed Monday 24 March.
Madam Deputy Speaker (Dawn Primarolo)
If the shouting across the Chamber can stop—perhaps Ministers would like to go outside to do that—we can move on to the Adjournment.
Oral Answers to Questions
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Nick de Bois (Enfield North) (Con)
5. What steps he plans to take to reduce youth unemployment.
The Financial Secretary to the Treasury (Sajid Javid)
Youth unemployment is falling, and the rate for the number of young people not in education, employment or training is at its lowest since 2008. However, we are not complacent. We are helping up to 500,000 young people into education and employment through the Youth Contract, funding jobcentres to help young adults who are not at school to find work through training, and piloting a new mandatory skills scheme for young jobseekers without basic maths or English.
Nick de Bois
When the Chancellor came to my constituency—where youth unemployment has fallen 32% since the general election—to launch his employment allowance, he met representatives of the excellent Ridgeway Garages, who told him that they would be employing more people and hoped to employ more young people. They also came to last week’s job fair and recruited five people, including young people. However, many businesses were unaware of the existence of the employment allowance. What steps will the Chancellor take to promote that excellent scheme?
Sajid Javid
Let me begin by praising my hon. Friend for holding another successful job fair in his constituency. It is a concept that he pioneered, helping many young people to find jobs. HMRC has already held discussions with businesses, charities and payroll software providers about the employment allowance, and will use its key publications and communications to advertise it further. It will also work with key stakeholders to ensure that the abolition of employer national insurance contributions for under-21s, which will come into effect in April 2015, is delivered effectively.
Ian Austin (Dudley North) (Lab)
The Government clearly oppose the implementation of a national youth jobs guarantee, but given that long-term youth unemployment is twice as high in the black country as it is elsewhere, surely the Minister must accept the case for a specific, targeted plan to guarantee young people in the area the chance of a job or training so that they can start their careers.
Sajid Javid
When the last Government were in office, unemployment among young people rose by 45%, so we are not going to listen to any ideas that Labour Members may have about it. The best way of cutting unemployment, whether long-term or otherwise, is to establish a growing economy that creates jobs. In the last four years, our economy has seen 1.3 million jobs created, and more people employed than at any other time in history.
Charlie Elphicke (Dover) (Con)
Youth unemployment in Dover and Deal has fallen by 25% in the last year, having increased by 50% in the last Parliament. Does that not show that it is important for us not just to have a long-term economic plan that is working but to do more to repair the damage done by the last Labour Government?
Sajid Javid
My hon. Friend is absolutely right. We need to stick to our long-term plan to ensure that we have a growing economy that creates jobs and gives people the financial stability that they need, and the biggest risk to that plan would be our adoption of Labour’s policies of more borrowing, more spending and more debt.
Andy Sawford (Corby) (Lab/Co-op)
Unemployment among young people in my constituency remains stubbornly high, at just under 500, but under-employment is also a big issue. Many people are in insecure employment, on zero-hours contracts, and barely managing to struggle on the minimum wage. Will the Minister make an assessment of under-employment and develop a strategy to address it?
Sajid Javid
Unemployment in the hon. Gentleman’s constituency rose in all categories under the last Government, and youth unemployment has fallen by 33% so far under the present Government. I hope that the hon. Gentleman will join me in welcoming that. He is right to point out that we must do much more to deal with the problem, but I am sure he supports the efforts that the Government have made in regard to apprenticeships. There have been 1.5 million apprenticeship starts over the last four years.
Jonathan Edwards (Carmarthen East and Dinefwr) (PC)
6. What consideration he has given to reforming the membership of the Monetary Policy Committee of the Bank of England.
The Financial Secretary to the Treasury (Sajid Javid)
The Government are protecting the incomes of low-income households by freezing fuel duty and taking 2.7 million people out of tax by increasing their personal allowance. The best way to raise—[Interruption.]
Mr Speaker
Order. I think that the Minister is a tad confused. We are on Question 6, which is about membership of the Monetary Policy Committee of the Bank of England.
Sajid Javid
I beg your pardon, Mr Speaker.
The Monetary Policy Committee consists of the individuals who are best qualified to make the decisions necessary to achieve the Government’s monetary policy objectives: the Governor of the Bank of England, the two deputy governors, two members of the Bank with responsibility for monetary policy and market operations, and four external members who are appointed by the Chancellor. All appointments are made on merit.
Jonathan Edwards
Diolch, Mr Speaker.
Regardless of the result of the referendum in Scotland, it seems inevitable that the devolved Governments will have more fiscal responsibility over the coming years. Fiscal empowerment needs to be matched with monetary policy-setting reform. Does the Minister agree that one option would be to appoint representatives of the devolved nations—and, arguably, representatives of territories outside the United Kingdom that use sterling, such as the Channel Islands and the Isle of Man—to the MPC, to ensure that monetary policy is formulated on the basis of the economic requirements of every part of the sterling zone? Would that not truly represent a partnership of equals?
Sajid Javid
No, I do not agree with the hon. Gentleman. I think the MPC is constituted in the right way. He knows that monetary policy is not a devolved responsibility, and there are no plans to change that.
Mr Douglas Carswell (Clacton) (Con)
As well as ensuring more diversity in terms of gender, will my hon. Friend ensure more diversity of opinion and outlook in the membership of the MPC? Specifically, may we have a few free market economists who recognise that cheap credit is a consequence of economic success, not necessarily a cause of it?
Sajid Javid
I like the contribution my hon. Friend makes to Parliament so I hope that he is not applying to join the MPC. I agree, however, that when appointments are made on merit, diversity is important.
Cathy Jamieson (Kilmarnock and Loudoun) (Lab/Co-op)
I wonder if the Minister can tell us why there have been no women on the MPC since June 2010. Why has the Chancellor not appointed a single woman to the MPC over those last four years, and does the Minister agree with Labour that it is time to put that right?
Sajid Javid
Appointments to the MPC should always be made on merit and—[Interruption.] Diversity is, of course, always an important consideration. Factors in decisions on appointing external members to the MPC include looking at career training and background as well as ethnicity and gender. [Interruption.] The Government would like to see more women on the MPC and will encourage them to apply. [Interruption.] It is also worth noting that four women have already been part of the MPC.
Stephen Mosley (City of Chester) (Con)
Following on from the previous question, how will the Government be encouraging more women to apply for jobs on the MPC?
Sajid Javid
Whenever there is a vacancy on the MPC, the Government look at encouraging women to apply and will often invite women to apply to ensure that we can make our best efforts to increase diversity.
Tom Greatrex (Rutherglen and Hamilton West) (Lab/Co-op)
7. What plans he has to enhance the role of the Office for Budget Responsibility.
Mr Stephen Hepburn (Jarrow) (Lab)
8. What steps he has taken to reduce the cost of living for people on low incomes.
The Financial Secretary to the Treasury (Sajid Javid)
The Government are protecting the incomes of low-income households by freezing fuel duty and council tax and taking 2.7 million people out of tax by freezing the personal allowance. The best way to raise living standards is to stick to the Government’s long-term economic plan, which delivers for all. Britain is back on the path of prosperity: the economy is growing, the deficit is falling and jobs are being created.
Mr Hepburn
Now that’s nonsense. How on earth can this Government—the lot of them—justify this, let alone lie straight in bed at night, when they have given the top 1% richest people in this country a £100,000 pay rise and at the same time they are impoverishing the real workers of the country—the postmen, the nurses, the teachers—by making them up to £2,000 a year worse off?
Sajid Javid
The hon. Gentleman should put an end to the petty party politics and focus on the facts. He talks about the richest 1%, but the richest 1% are paying almost 30% of total income tax, which is the highest share ever. The richest 5% are paying almost 50% of total income tax. The only way this country will recover from Labour’s great recession is if we stick to our long-term economic plan, which is delivering for all.
Christopher Pincher (Tamworth) (Con)
Is not creating more jobs the best way to help the lowest paid? Of the 200 businesses I have polled in my constituency, 83% say that they are optimistic about the future and want to expand to create more jobs. Would not the best way to help them be to lower their taxation so that they can create those job opportunities?
Sajid Javid
Of course my hon. Friend is right; the best way for anyone to raise their living standards is through having an economy that creates more paid employment. That is why we should welcome the fact that more than 1.3 million jobs have been added to our economy over the past four years.
Mr Geoffrey Robinson (Coventry North West) (Lab)
The Minister is not having the best of days today, and I wonder whether I could help him by inviting him and the Chancellor to come to Coventry, where I could introduce him to many families in my constituency who are on very low wages and, despite both parents working, finding it very hard to make ends meet. Is he aware that the singular achievement of this Government, and this Treasury, has been to create a new social class—namely, the working poor?
Sajid Javid
The hon. Gentleman talks about people not having the best of days, but he should reflect on the policies of the Government he supported and on how many lives were destroyed by the great recession, which was the deepest in 100 years. The best way to raise living standards is to stick to our long-term economic plan. If we abandoned it, many more people would suffer.
Ian Swales (Redcar) (LD)
A good way to help those on low incomes is to take less money from them in tax. Next month, the Liberal Democrat manifesto target of a £10,000 income tax threshold will be achieved. Will the Minister help the low paid further by increasing that threshold to £10,500?
Sajid Javid
This Government are proud that we have been able to cut taxes for the lowest paid in society. In fact, people working full time on the national minimum wage will have seen their income tax bill more than halved because of this Government, and I welcome my hon. Friend’s support for that policy.
Catherine McKinnell (Newcastle upon Tyne North) (Lab)
Now we know that the Minister thinks there are no women in Britain good enough to be on the Monetary Policy Committee, let me ask him another question. The Chancellor’s Budgets and spending reviews have hit women, particularly those on low incomes, a staggering four times harder than they have hit men. Millions are struggling with the cost of living crisis, and people are on average £26 a week worse off since 2010, so why are the Chancellor’s top-rate tax cut and marriage tax break giving 80% of the benefit to men? Just take a look at the Government Benches. Are this Government completely out of touch with the women in this country?
Sajid Javid
Because of this Government’s economic plan to deal with the record budget deficit that the previous Government left behind, more women are employed in our economy than at any other time in history, and 1.4 million women have been taken out of income tax altogether because of our personal income tax allowance increases.
Stephen Metcalfe (South Basildon and East Thurrock) (Con)
9. What assessment he has made of the effect of freezing fuel duty on the price of petrol.
John Howell (Henley) (Con)
15. What recent steps he has taken to reform the banking sector.
The Financial Secretary to the Treasury (Sajid Javid)
Through the Financial Services (Banking Reform ) Act 2013, the Government have brought forward the most significant reform to the banking sector in a generation. We have ring-fenced vital everyday banking, including investment banking, and introduced depositor preference and bail-in to ensure that taxpayers are not on the hook when a bank fails.
John Howell
Does my hon. Friend agree that under the previous Government’s system of financial regulation, there were no clear channels of accountability, and that by putting the Bank of England back in charge, it will be better placed to take full responsibility for financial stability?
Sajid Javid
I agree with my hon. Friend. Under the previous Government’s system of financial regulation, there was a lack of clarity over who was responsible for financial stability, so when the alarm bells were ringing, no one was listening. We have reformed the system of financial regulation to address those failures by placing responsibility for financial stability firmly with the Bank of England and creating two newly focused financial regulators, the Prudential Regulation Authority and the Financial Conduct Authority.
Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)
If the Royal Bank of Scotland asks for permission to pay bonuses of more than 100% of salary—while, incidentally, its subsidiary NatWest closes branches in my constituency—will the Chancellor just say no, or is he as out of touch as the bank appears to be?
Sajid Javid
The failed regulation by the previous Government that led to Government ownership of RBS also produced a system of governance that is done on an arm’s length basis. Those are commercial decisions for RBS. If the hon. Gentleman wants to make representations to it, he can do so through me if he wishes.
Richard Fuller (Bedford) (Con)
T1. If he will make a statement on his departmental responsibilities.
Bill Esterson (Sefton Central) (Lab)
The Government’s own figures show that net lending to small and medium-sized enterprises has fallen since the funding for lending scheme was introduced, as confirmed by businesses in my constituency. Does the Minister accept that the scheme has totally failed Britain’s small businesses?
The Financial Secretary to the Treasury (Sajid Javid)
The hon. Gentleman is right to raise this issue. Lending to small businesses has been a matter of concern to this Government. There are potentially some issues of competition in the market, and that is why we welcome today’s update by the Office of Fair Trading on its SME market study. The funding for lending scheme has helped. It has increased net lending by the participating banks by more than £10 billion during its first phase, and I think we are right, in its second phase, to focus it on SMEs only.
Tessa Munt (Wells) (LD)
I am sure that Members of this House will welcome the overwhelming support in the European Parliament this morning in voting in favour of open public registers of company beneficial ownership and voting against exempting trusts from public disclosure. Will the Minister apply pressure to his colleagues to ensure that the Council adopts the same rigorous position as Members of the European Parliament?
Mark Tami (Alyn and Deeside) (Lab)
The banks keep telling us that they are lending more to small business, but the reality on the ground seems to be very different. In particular, what are this Government doing about the excessive level of charges, which means that even when loans are available they are often not taken up?
Sajid Javid
I hope that the hon. Gentleman supports the funding for lending scheme, which has not only led to more money in the banking system going to companies and households, but reduced the cost of lending. He may also be aware of today’s update from the OFT. I suggest he takes a good look at it, because it is worth reading.
ECOFIN
Sajid Javid Excerpts(10 years, 10 months ago)
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The Financial Secretary to the Treasury (Sajid Javid)
A meeting of the Economic and Financial Affairs Council was held in Brussels on 18 February. The following items were discussed.
Annual Growth Survey 2014: Guidance on the implementation of priorities agreed at the December European Council on macroeconomic and fiscal matters
ECOFIN adopted Council conclusions on the annual growth survey. The Government support the Commission’s focus on fiscal consolidation, promoting economic growth and employment, and broadly agree with the Commission’s overall priorities. However, the Government consider that the European semester should focus on the core priorities of growth and jobs, and that these conclusions should not provide a mandate for a justice scoreboard.
Alert Mechanism Report 2014
ECOFIN adopted Council conclusions on the alert mechanism report (AMR) which marks the start of the macro-economic imbalance procedure cycle.
Preparation of G20 Meeting of Finance Ministers and Governors (Sydney, Australia, 22-23 February 2014)
The Council endorsed the EU terms of reference for the G20 Finance Ministers and Governors meeting in Sydney.
Discharge procedure in respect of the implementation of the budget for 2012
The Council, on the basis of a report from the Court of Auditors, approved the recommendation on the discharge to be given to the Commission in respect of the implementation of the general budget of the European Union for the financial year 2012. The UK, along with the Netherlands and Sweden, voted against the discharge of the EU budget and submitted a joint statement expressing disappointment that the Court of Auditors had been unable to give an unqualified statement of assurance for the 19th consecutive year and that the overall error rate had increased.
Budget guidelines for 2015
The Council adopted conclusions on the budget guidelines for 2015, which will be its overall reference for the budget year.
Implementation of the Single Supervisory Mechanism
The European Central Bank presented its first quarterly report on progress in the implementation of the single supervisory mechanism (SSM). The establishment of the SSM will help to safeguard euro area financial stability and is critical to restoring market confidence over the medium term.
Current legislative proposals
The presidency provided information on the ongoing work on financial services dossiers.
Single Resolution Mechanism
The presidency updated the Council on the trilogue process with the European Parliament. The UK welcomed the progress made on this file since the general approach was reached at ECOFIN in December 2013, and will be ensuring that it fully respects the unity and integrity of the single market.
Currency in Scotland after 2014
Sajid Javid Excerpts(10 years, 10 months ago)
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Westminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
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The Financial Secretary to the Treasury (Sajid Javid)
I welcome you to the Chair, Mrs Riordan. It is always a pleasure to serve under your chairmanship, and it is good to see my right hon. Friend the Under-Secretary of State for Scotland here today. I congratulate the hon. Member for Edinburgh South (Ian Murray) on securing this debate, on his excellent, thoughtful speech and on giving all hon. Members an opportunity to discuss this important issue. The debate has been lively and passionate. Indeed, it has been the liveliest and most passionate Westminster Hall debate that I have yet seen, which shows how important the issue is not just to the people of Scotland but to the people of the entire United Kingdom.
It is no exaggeration to say that the currency that we use affects everyone every day, whether they are individuals buying food or paying off loans, businesses paying their employees or trading across borders or banks protecting savings or providing mortgages. Currency is one of the most important issues in the Scottish referendum debate. Members may be aware that last April the UK Government issued a comprehensive paper exploring an independent Scotland’s possible currency options. Members will be aware—many hon. Members have referred to this today—that just last week the Governor of the Bank of England, Mark Carney, set out his views on currency unions in measured and, as he describes it, technocratic terms. Members may also have read that the Chancellor plans to give a speech on the matter later this week.
Pete Wishart
In the past few days, the Prime Minister and the Chancellor have been playing good toff, bad toff with Scotland. The Prime Minister is love-bombing us from London, and the Chancellor will be threatening us on currency in his speech in Scotland in the next two days. Which one does the Minister support—the good toff or the bad toff?
Sajid Javid
That goes to show that the SNP is not interested in a serious debate on one of the most important issues facing the Scottish and British people. That speaks for itself.
The Government have consistently stated throughout the debate that the current economic arrangement—one currency in one United Kingdom—is in the best interest of everyone. We have also consistently stated that it is highly unlikely that a currency union between an independent Scotland and a continuing UK could be made to work. I will use the remaining time to remind hon. Members of our analysis, which explains why that is the case.
First, the lessons of the eurozone crisis are there for us to see. Currency unions do not work without close political and fiscal integration. As a result of the crisis, those countries that use the euro are moving towards ever greater integration to address the challenges that they face. Scottish independence, though, is all about disintegration and would inevitably mean that the continuing UK and Scotland move further apart. The Scottish Government’s proposal for a currency union without fiscal or political integration lacks any credibility and makes one wonder whether the Scottish Government actually understand what the word “independence” means.
Secondly, we know that the economies of an independent Scotland and a continuing UK would be very different and would diverge over time as a result of different laws, different regulations and different industries. One industry that we know would be important for Scotland is North sea oil. A significant portion of an independent Scotland’s economy would depend on oil revenues. Were a change in oil price to affect the two countries differently, a one-size monetary policy with one currency for two separate nations would simply not be suitable.
Thirdly, despite the Scottish Government’s claim, we do not believe that a currency union would be in the interest of an independent Scotland. Such a union would inevitably constrain Scotland’s own economic policies because the remaining UK, to manage the risks of the union, would need to set interest rates and maintain oversight of an independent Scotland’s tax and spending plans. Indeed, a currency union would also be likely to undermine an independent Scotland’s economic resilience and credibility. If, for example, the financial markets sensed that the Bank of England’s monetary policy did not suit Scottish circumstances, they might doubt Scotland’s commitment to the currency union, which would, in turn, lead to financial market speculation. In such circumstances, if markets were not calmed, there would be a very real possibility that Scotland would be forced to adopt its own currency in a time of crisis. One is reminded of the recent situation in Cyprus when there was plenty of talk of the country potentially leaving the euro. Members will know that that was prevented only after a huge bail out from other eurozone members, which came at a significant cost to Cypriots, many of whom lost up to 40% of their deposits in domestic banks.
Fourthly, just as a currency union is not in Scotland’s interest, it is hard to see how it could be in the interest of the remaining United Kingdom. Such a union would involve the remaining United Kingdom giving up an element of its economic sovereignty, as we have heard from many hon. Members today. The public would feel very strongly about that. It would increase the risk of having to bail out Scottish banks, and the idea of putting the remaining United Kingdom’s economy at risk because of another country’s banks just as we are getting our own banks in order would make no sense.
Before I come to an end, I will address some of the questions that have been raised. I listened carefully to the speech of the hon. Member for Dundee East (Stewart Hosie) and what he has to say on this issue is very important. I agree with the shadow Minister that he is an intelligent person who makes valuable contributions in the House, but from what I have heard today, he does not seem to want facts to get in the way of a good argument.
The hon. Gentleman and other hon. Members mentioned the banking bail outs of 2008. I remind him that the cost of recapitalising the Royal Bank of Scotland was £45 billion, which is the largest banking bail out the world has ever seen, plus an additional £275 billion of state support through guarantee and funding commitments. That sum is more than 200% of an independent Scotland’s GDP.
Stewart Hosie
Presumably, the Minister does not disagree with the Banking Commission that the total cash cost of the entire financial bail out of all the systems was £133 billion. Of the other figures that he talks about, £220 billion was made up of the asset protection scheme, which was a paid-for insurance guarantee. The scheme made the taxpayer a profit and was never called upon; it has since been shut down. Will the Minister confirm that that is correct?
Sajid Javid
Again, that is a good demonstration of how the hon. Gentleman would like to twist the facts. Just because a guarantee is not called upon does not mean that it has not done its job. The guarantee provided confidence and ensured that the banking system did not collapse. Our analysis shows that Scottish banks, even when we focus only on their assets in Scotland, would have assets equal to 10 times the GDP of an independent Scotland. That shows that it would be difficult for an independent Scotland to give depositors confidence in its domestic banking system.
The hon. Gentleman also mentioned trade between the UK and Scotland. The UK accounts for 70% of Scotland’s total trade, whereas Scotland accounts for 10% of the UK’s trade. Scottish trade is important to the UK economy, but it is not clear that it is important enough to risk recreating in the British isles the problems that we have seen in the euro area.
In conclusion, a fiscal and currency union pursued by two diverging nations would put significant limits on an independent Scotland’s economic freedom, and it would put an independent Scotland at severe risk of losing economic resilience and credibility. Such a union would undermine a continuing UK’s sovereignty and would increase the risk of bank bail outs. That is why we have consistently said that it is highly unlikely that a currency union would be agreed and that it is highly unlikely that a currency union could be made to work.
ECOFIN
Sajid Javid Excerpts(10 years, 11 months ago)
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The Financial Secretary to the Treasury (Sajid Javid)
A meeting of the Economic and Financial Affairs Council was held in Brussels on 28 January 2014. The following agenda items were discussed.
Current legislative proposals
The presidency provided information on the ongoing work on financial services dossiers.
Implementation of the Single Supervisory Mechanism
The European Central Bank (ECB) provided an update on the state of play of the implementation of the single supervisory mechanism (SSM). The establishment of the SSM will help to safeguard euro area financial stability and is critical to restoring market confidence over the medium term.
Presentation of the Presidency work programme
The Greek presidency presented its six-month work programme for ECOFIN. The main themes of the presidency are: growth, jobs and cohesion; further EU/eurozone integration; migration, borders and mobility; and maritime policy.
Follow-up to the European Council meeting on 19-20 December 2013
Council held an exchange of views on the December 2013 European Council conclusions regarding the implementation of the compact for growth and jobs. The UK supports the objectives of the compact to promote growth and competitiveness and tackle unemployment.
Implementation of the Stability and Growth Pact
Council endorsed a Council decision on the existence of an excessive deficit in Croatia and a council recommendation to put an end to the present excessive deficit situation.