(1 year, 4 months ago)
Lords ChamberI certainly note what the noble Baroness has said. I have mentioned already that the Chancellor is meeting the banks. I do not want to pre-empt the outcome of those discussions. What is important are the initiatives we have taken already to help people. There is support for people who have mortgages. We have increased the generosity and availability of the support for mortgage interest scheme, meaning that those on universal credit can apply for a loan to help cover interest repayments after three months rather than nine and can now receive support while working.
A new Financial Conduct Authority customer duty, coming into effect next month, will ensure that firms put customers first, delivering fair value and ensuring good outcomes for those in financial difficulty. The noble Baroness raises a very important point and I hope that further measures can be produced. We await the outcome of discussions.
My Lords, I have a great deal of personal sympathy for the noble Viscount in having to make this Statement to the House on this of all days. I do not doubt his personal commitment to ensuring fairness and help for the people in the most desperate situations in our society, but I would like him to respond to two observations.
First, the main problem we have, which my noble friend Lady Armstrong referred to, is the number of families who can no longer afford the basics of life. In thinking about policy as it goes forward, we have to think harder about the generational distribution of impacts. I am a wealthy pensioner. I got the generous support for energy bills. Is that right, when families are in such desperate need?
Secondly, Conservative Back-Benchers need to stop talking about the urgent need for tax cuts. The fact is that we face desperate pressures on public services and benefits. We have debt at 100% and there are no proposals coming forward from the Government for credible reductions in public spending. The consequence of tax cuts is that there would be a tension between the monetary policy of the Bank, which is trying to deal with inflation through interest rates, and the fiscal policy. We would be at risk of prolonging high interest rates if we went ahead with irresponsible and unfunded tax cuts.
I think the noble Lord made three points altogether. I can only reiterate that I am aware of the impact on households, particularly those at the vulnerable end of society. I have already mentioned a number of initiatives and points that are being made outside government, particularly what the supermarkets are doing. At the end of the day, it is the basics that count. That includes, as the noble Lord alluded to, where the next meal is going to come from.
The noble Lord made a good point about the generational aspect, which ought to be in all of our minds. Whatever is happening now, we need to think about the next generation and generations after that, helping children and looking at the educational side and the health aspects of children. Of course, I understand that the current situation does not particularly help.
Finally, on the noble Lord’s point about tax cuts, we have made it clear that we on this side wish to make tax cuts but are not in a position to do so. It is important to make the point again that tackling inflation is by far the biggest challenge. Although there are some signs that it will come down—we have the predictions and forecasts—there is a lot more work to do. But that is the most important point, and No. 10 made it as well.
My noble friend makes a very good point about the accountability of funds. He will know that part of the establishment of the joint board is setting up a fiscal council tasked with assessing and reporting on the sustainability of the finances and spending proposals. As he said, it is important to put the funding for Northern Ireland in the context of funding for the other devolved Administrations.
What discussions have been taking place in this area on the question of the customs border in the Irish Sea? Can the Minister enlighten us? It seems to me that there is a misunderstanding on the part of the Government. They say that this problem will be solved if, as we hope, there is a trade deal, but the reason for that is that at present there is regulatory alignment between Great Britain and Northern Ireland. If the Government’s objective with Brexit is to diverge over a whole range of areas, as they envisage, will there not have to be a proper customs border in the Irish Sea, and does that not require extensive consultation with the Northern Ireland authorities?
I admire the noble Lord’s ingenuity in steering the Question in that direction. However, I remind him that the purpose of the joint board is to review the use of funding provided under the NDNA agreement. These matters are not, as such, for the joint board.
My noble friend makes an excellent point. The opportunities for the UK are substantial. I say again that this is a landmark deal that will set the standard for world-leading trade agreements. Starting off with the US is a very good start. For example, it is very exciting that tariffs will likely be reduced for Bentleys from Crewe, Aston Martins from Warwickshire and Wales, UK cheese, which currently has a 17% tariff, and ceramics from Warwickshire, which have a 28% tariff. We hope that these tariffs will be reduced, as they should be, in the negotiations. Noble Lords might ask me, as the Minister, what we are going to get in return from America. That includes raisins and wine from California, and, as the Prime Minister said, Stetsons replacing salmon. There is a lot to be hopeful about in the negotiations.
My Lords, I have not had an opportunity to read this long document, but I congratulate the Minister in one respect: at least in this document, the Government have tried to produce a proper economic assessment of the potential of a free trade agreement with the United States. Is it not odd that, on the much more important free trade agreement with the EU—despite what the noble Lord, Lord Lilley, said, it still accounts for two and a half times more of our trade than the United States—no economic assessment was produced at all? How can he explain that?
Secondly, will the Minister acknowledge that, while any growth as a result of a UK-US deal would be welcome and important, it is trivial by comparison with the numbers at stake in our EU relationship?
Finally, will he acknowledge that, in the special case of President Trump, trade deals are extremely difficult to negotiate? He does not believe, like Britain and the European Union, in the concept of a rules-based multilateral order governing trade. He has been trying to weaken the WTO by not appointing judges to its highest arbitration panels. He believes that might is more important than right, and he judges trade by how much powerful America can grab—it is what academics would call “managed trade”, not free trade. We are putting far too much importance—we need realism—about getting anything substantial out of these negotiations.
I am much more optimistic than the noble Lord. I can perhaps reassure him that we are aware that some reforms are required for the WTO. We very much want to play our part in ensuring that those reforms are carried through.
The second thing to say is that the US deal is the first of several. The noble Lord will know that we have Japan, New Zealand and Australia to come, and of course the EU. There was a chance in the past few days, and yesterday, to question my noble friend Lord True on the EU deal. I do not want to be drawn in on that except to say that, in the US deal, we start from a very good platform because we are one nation negotiating with one other nation; with the EU, it is of course a bit more complicated, in that we are dealing with 27 countries —and the House will understand when I say that there are a few more complications than that. However, we are very confident that we will be able to negotiate both a US deal and an EU deal in parallel. I hope that helps to answer the noble Lord’s questions, but I doubt it.
(4 years, 9 months ago)
Grand CommitteeI think that I heard “dreadful” at least four times. I say, perhaps as a reassurance—although I do not think that it will wash with the noble Lord—that the names have been chosen locally. Admittedly there was no competition, but they were chosen locally rather than being imposed on them.
I shall go further on the consultation. The Northamptonshire Healthcare NHS Foundation Trust and Healthwatch Northamptonshire support a reduction in the number of councils. They both welcome the closer integration possible as a result of having to engage with fewer authorities, and agree that this is a positive opportunity for change to secure a sustainable future. The Northamptonshire police and crime commissioner is supportive and stated that the
“creation of unitary authorities would bring about clarity for the public and present opportunities for greater co-ordination, realisation of efficiencies and simpler partnership working.”
Finally, the Northamptonshire County Association of Local Councils reported that an overwhelming majority of town and parish councillors supported the principle of unitary authorities being established. We should not dismiss the opinions of local people in this respect. This allows me to pick up a point made by the noble Baroness, Lady Pinnock, about taking “local” out of “local government”. I point out to her that the new parish and town councils are in the process of being established, including in Kettering, Northampton and Wellingborough—note those names. I welcome and encourage this as an important way to strengthen local democracy and enable decisions to be taken to reflect the needs of local communities. I do not agree entirely with the noble Baroness that the local is being taken out the process. In my view, we still have some very robust local democracy.
I will pick up another point made by the noble Baroness about the role of councillors in the cabinet system. I think her point was that only 10 were making decisions, as opposed to the other 93—sorry, 89; my maths is bad. It will be for the new councils to determine the role of councillors and to ensure that all councillors can take a full role in representing their residents and ensuring an effective local democracy.
Furthermore, as to the size of wards, for the election in May 2020, each ward, which are county electoral divisions, will have three members. For the next election in May 2025, we expect the independent boundary commission to undertake a full electoral review. It is for the commission to decide the number of councillors and the size of wards. Experience shows that the new unitary councils establish strong and effective arrangements at parish and community levels, to add a little more to what I said. We would expect the new Northamptonshire councils to follow best practice—as, for example, in the unitary Wiltshire Council, led by my noble friend Lady Scott, if I may spare her blushes.
The noble Lord, Lord Deben, spoke and expressed concerns about process. My guess is that a letter will better satisfy him, but the start of the process was the independent inspector. The proposal made follows exactly the inspector’s recommendation. The consideration behind the inspector’s recommendation was that a new start was needed, with two new councils. In the inspector’s view, two unitaries best met this aim and the criteria for unitary local government: improving local government; a credible geography with a population substantially in excess of 300,000; and a good deal of support. That penultimate figure perhaps answers the question asked by the noble Lord, Lord Liddle. To clarify, the figure is substantially in excess of 300,000. A unitary county would risk being seen as replicating and rewarding a failing county.
The noble Lord, Lord Liddle, spoke about Cumbria with great passion, for obvious reasons. The position in Cumbria is all about a devolution deal. It is for Cumbria to decide whether it wishes to have a devolution deal; initial discussions are continuing. Major deals have involved a mayoral combined authority. If Cumbria wished to have a mayor deal with a mayoral combined authority, it would point to a simplification of current local government structures: establishing unitary councils. We know that there are different local views about unitary structures for Cumbria. As I am sure the noble Lord will tell me, discussions are continuing. We will want to hear more from the local area in this respect.
The noble Lord made points about the elected mayors. The idea of elected mayors arises in major devolution deals where substantial powers and budgets are devolved over a functional economic area. An elected mayor is seen as providing a strong single point of accountability for the exercise of those powers and for managing those budgets. That elected mayor can be a combined authority mayor if there is more than one authority in the functional economic area, or if that area comprises a single unitary council or an elected mayor of that council.
I would take that point if the elected mayor had substantial powers and there was a substantial devolution of the budget. As I understand it, in my county—I could be wrong and I am quite happy to be corrected by the noble Lord’s officials—Mr Berry is talking about a devolution deal that might give Cumbria £10 million a year. That is a very small amount of money compared with the county council’s revenue and capital budgets, never mind the other district councils. I think that our net revenue budget is more than £400 million; the districts must have another £80 million. We have a LEP, of course, which is already in place and deals with economic development. I do not quite understand whether the Government are saying that, if there is a reorganisation in areas such as Cumbria, the mayor will replace the LEP. I was against the abolition of regional development agencies—it was a mistake for the coalition to do that—but the emphasis then was put on local enterprise partnerships. Are we now, hardly a decade later, shifting on to mayors as something completely different?
Again, I am happy to take the message back, but I am not in a position to make any commitments—which, admittedly, my noble friend did not ask me to do. I say again that it is so important both horizontally and vertically to have a system whereby individuals’ careers are managed from a pretty early stage and that the right guidance is given to them on whether to go up through the academic route—through university, for example—or through the vocational, technical route, using T-levels or apprenticeships. My point is that it is all joined-up thinking. It must be, because vertically, through the career path, and horizontally, in what you can actually offer, it is very important that we get it right. That is all part of our thinking. The Augar review is extremely informative to our thinking.
My Lords, I declare an interest as the chair of council at Lancaster University. I endorse the welcome from these Benches of the Augar review’s emphasis on the improvement of further education and the integration of our further and higher education efforts. This has always been the Cinderella of our education system, and we have to correct it. However, does the Minister accept that there are dangers in the line of thinking that one can improve the further education sector by making economies and redistributing money from the university sector? I do not believe that this is a feasible course of action. Indeed, the reintroduction of maintenance grants and the cut in the fee to £7,500 proposed in Augar will require increased spending on universities if their standards are not to fall. If there is a cut in the income of universities, my noble friend is correct that the research is not fully funded by the Government, and that, therefore, there will be pressure on research budgets. Also, if the headline fee is cut without any comparable increase in the teaching grant, universities will find that they are under pressure to cut what they spend at present on wider participation and bursaries. That would be a tragedy for equal opportunities in this country.
I take note of what the noble Lord, Lord Liddle, has said. I think the assumption he is making out of Augar is that there could be a skewing of funding—robbing Peter to pay Paul. That is noted, and it is perhaps understandable that it has come out of the Augar review. As I say, I cannot comment on that at all. We will need to think about it. As I said to my noble friend Lord O’Shaughnessy, we need to look at all these important institutions and at what we are trying to do as part of the industrial strategy as a whole, because they are all important. It is very important that we have a world-class technical sector and a world-class university sector. It all has to go together.
(7 years, 10 months ago)
Lords ChamberI thank the noble Earl for his point. However, I think it is right that we should be bold and look ahead to bring in the performance-related measures that we have been talking about—the sector has been waiting 20 years for this. We are bringing it in carefully, with some consideration, and I hope the Committee today recognises that there have been a lot of checks and controls in this. I do not think we should stick to the status quo, in which there is no consideration of assessing the performance of universities or teaching. It is very important to be sure that we raise the quality of teaching in this country.
My Lords, I declare an interest as pro-chancellor of Lancaster University, where we support strongly the principle of the teaching excellence framework. However, what I have found in this debate is that the Minister appears very reluctant to admit that, in any of the excellent speeches that we have heard tonight, good points have been made that are worth him thinking about and coming back to the House on at Report stage. This is disappointing. Does the Minister acknowledge that this might be the reaction of Members all around the Committee, and will he reflect on that?
I will reflect on that. I may not have said it, but I have appreciated the contributions from all noble Lords this afternoon. There have been a number of different angles to this and we had an interesting contribution from the noble Lord, Lord Desai. There is not a conclusive way forward—this is an iterative process—but I must say that, yes, I am listening. We believe that this is the right way forward. Although I have been listening, I will say again that this is a manifesto commitment and we are very keen to take it forward.
(7 years, 10 months ago)
Lords ChamberMy Lords, the Government have given careful consideration to the range of views expressed in response to our 2015 Green Paper in relation to the application of the Freedom of Information Act 2000 to higher education providers. Over 100 consultation responses were received on this issue and, perhaps surprisingly, opinion was divided. The underlying principle behind freedom of information legislation is that people have a right to know about the activities of public authorities. Although not traditionally regarded as public authorities in the wider sense, the Act does currently apply to HEFCE-funded institutions in recognition of the fact that they are in receipt of direct public funding.
In seeking to apply the Freedom of Information Act equally to all registered providers, the effect of the amendment tabled by my noble friend Lord Lucas—and I thank him for that—would either be to remove all higher education providers from the remit of the Act, or impose an additional freedom of information obligation on providers which are not already covered, irrespective of whether they receive direct public funding. This amendment would extend the scope of freedom of information obligations in this case to all registered higher education providers with courses designated for student support.
In the 2015 Green Paper, we considered the application of the Act and the regulatory costs it could impose on higher education providers, some of which may be relatively small organisations. Having considered the views expressed by a range of stakeholders, our decision was, so far as possible, to maintain the status quo by applying freedom of information obligations to those providers who, in future, are eligible to receive direct grant funding from the Office for Students—namely, approved fee-cap providers. As part of our overall principle of risk-based regulation and seeking to reduce regulatory costs and barriers to entry where appropriate, we did not consider that there was a strong case for expanding the scope of the Freedom of Information Act more broadly. We already believe that more higher education providers will be regulated through our reforms.
In this short debate, I wanted to address an interesting question posed by the noble Lord, Lord Liddle, and supported by the noble Lord, Lord Storey. The gist of his question was why the Bill does not seek to provide a level playing field of regulatory obligations. I would like to expand a bit on my answer. The Bill continues a rather different approach, whereby those that receive the most significant funding directly from the public purse are subject to the provisions of the Freedom of Information Act. This is a targeted approach to regulation, imposing requirements on those—
I am not trying to be difficult with the noble Lord, but when he talks about direct public funding, does he mean any institution where a student can receive a loan in order to carry out their studies? In my view, when anyone is eligible for a student loan, there is an element of public funding because, as we know, there are going to be write-offs of these loans in the future by the Government. I think this phrase about “direct public funding”, with the greatest respect for the Minister, is a bit of a cop-out.
It is slightly more complicated than that, and it may be that I should write a letter to clarify this, but there is the funding on the student side that the noble Lord is talking about, the tuition fee, where a private individual is receiving private funding, and on the other side, what we are talking about, funding that comes in the form of a grant to help with the top-up—for example, for a high-cost STEM course. I think it would be good if I wrote a letter of clarification on that. There has been some discussion outside the Chamber on this aspect and it gives me the opportunity to write further on this. Having said all that, there is a bit more I wanted to say about that.
May I add my tuppenceworth in support of the amendments? This seems crucial to the socially progressive innovation in higher education many of us on these Benches would like to see. The truth is that there has not been much attempt to enable people to do courses faster than the standard three or four years. Creating the financial possibility for this to happen would be a very good thing.
My Lords, I wish to respond to Amendments 119, 120 and 121. The Government are committed to encouraging more accelerated degrees and other flexible provision. Indeed, we stated this in our last manifesto and I hope there will be an element of agreement between us on this.
The Bill will level the playing field for high-quality new entrants, making it easier for new specialist and innovative providers to enter the sector. Accelerated degrees are a particular strength of new and alternative providers, and this will help to ensure that students can access learning in the form that suits them. For example, Buckingham, BPP, Condé Nast College of Fashion and Design and the Greenwich School of Management all offer students the opportunity to complete an honours degree over two years. This means that the student incurs less debt and can enter or re-enter the workforce more quickly.
We are interested in understanding what more we can do to support flexible provision. We carried out a call for evidence in the summer seeking views from providers, students and others. This call for evidence resulted in more than 4,500 responses. A clear majority of these came from individual students and we were delighted to see this level of engagement. Many of the responding students expressed an interest in accelerated degrees, so this is clearly an important issue and the demand seems to be there.
On 20 December 2016, the Government published a summary of the call for evidence. This is a complicated policy area and we are now fully considering the evidence. Let me reassure noble Lords, however, that we are looking carefully at the options to remove barriers to accelerated degrees. While we certainly sympathise with the underlying intention of this amendment, as we continue carefully to consider the key issues, I ask that this amendment be withdrawn.
I move on to the amendments spoken to by my noble friend Lord Lucas. In a very similar approach, they both seek to link funding to academic credits as well as academic years. Again there is considerable sympathy with the issues that are raised here. The Government are committed to improving diversity of provision and to increasing student choice. Supporting students who wish to switch a higher education institution or a course is an important part of our reforms.
We also recognise the importance of part-time study, and this gives me another opportunity to trumpet this aspect of our reforms. There should be no doubt about our intention to promote this side. Studying part-time and later in life can bring enormous benefits for individuals, the economy and employers.
This area is also being considered as part of the call for evidence and is all part of us looking closely at the 4,500 responses. Again, it is complicated and I hope the Committee will indulge me and remember that it requires quite a bit of time to gather all the information. We will do that and return with the response in due course. Overall, the Government are already taking action to address some of the key areas of student choice as well as working to support students and their diverse needs.
I assure the Committee that we are actively considering all options in this area. I hope these warm words will be helpful. As we continue to consider the key issues as highlighted in our call for evidence, I ask that the amendment is withdrawn.
(8 years ago)
Lords ChamberThat is true. I am unable to give an answer; I can be candid about that. However, I reassure the noble Baroness that this is a very important point and that these matters are being discussed and will continue to be discussed as we move forward in this particularly challenging process.
We are also grateful to the European Commission for the swift reassurances it has provided. Commissioner Moedas said in July this year:
“As long as the UK is a member of the European Union, EU law continues to apply and the UK retains all rights and obligations of a member state”.
This means that we still have the same terms of access to European research funding, such as Horizon 2020, for as long as we are still a member of the EU.
Following on from my noble friend’s question, I point out that we will not have left the EU by the start of term in September 2018. Does the fact that EU obligations continue to apply mean that EU students will be eligible for British loans to come to our universities in autumn 2018? Will the Minister give us that assurance?
I have laid out exactly what our guarantees can be, but I can only say again that I am unable to comment beyond those guarantees. I hope I have reassured the House that this is a very important matter.