VAT: Independent Schools

Alicia Kearns Excerpts

Tuesday 8th October 2024 Commons Chamber

[Damian Hinds]

No, independent schools do pay tax on supplies. No tax is charged on education, whether in an independent school or in other settings, and that is a very long-standing principle.

Let me clear up one very important definitional point, which I ask colleagues to reflect on. There is no tax break involved. It would be a tax break if a person who had a child at an independent school and was not taking a place at a state school were charged less tax as a result. That does not happen in the United Kingdom. Everybody contributes to state sector education, whether or not they take up a place.

The principle of no tax on learning is a fast one, and once we loosen it, we do not know where we will go. Where might the Treasury look next? Private nurseries, perhaps? Music lessons? Private tutoring? What is the philosophical difference between independent school education and private tutoring?

[Alicia Kearns (Rutland and Stamford) (Con)]

Let me make a point to demonstrate how rushed and ill thought through this policy is. My understanding is that if a child in a nursery has turned five but the other children in the class have not, all the parents in that nursery year will have to pay VAT on their child’s nursery fees. That is how badly this has been thought through.

[Damian Hinds]

My hon. Friend is right. That comes from the rushed nature of the legislation. The sloppy drafting means that children who are not of school age get dragged into this tax if they happen to be in the same room as children who are, and there are concerns about what might follow in other borderline cases.

The Government claim that the policy is about revenue, not politics, but having read the Secretary of State’s twitterings, I think hon. Members could be forgiven for mistaking the motivation. It is entirely spurious, for multiple reasons, to link this tax to 6,500 teachers, mental health support or anything else. The money will go into general Exchequer receipts, and anyway, 6,500 teachers is not that many in the scheme of things, given the 468,000 there are now. That is a compound growth rate of 0.3% over five years—and, by the way, a lot fewer teachers than we recruited in the last five years. Mental health support teams are already being rolled out, and they cover primary schools as well as secondary schools. It is not clear what the difference is in the new Government’s policy on mental health support, other than that it will not include primary schools.

To the extent that the VAT revenue could be hypothecated, it looks a lot more like that revenue would reduce cuts to education resourcing, rather than increasing it. If the policy is about revenue, not politics, the Government could easily commit to one simple thing today. They are confident, they tell us, that the policy will raise a large sum of money and not create large costs. Will they commit to measuring and reporting back on that, and if it turns out, against expectations, that they were wrong, will they reverse it?

--- Later in debate ---

[James Murray]

I am not quite sure what happened there, but I will carry on. I was making an important point, which is that the Government will monitor closely the impact of our policy changes on affected diplomatic and military families, with any changes to the scheme being considered as part of the ongoing spending review.

[Alicia Kearns]

Will the hon. Gentleman give way on that point?

[James Murray]

I will make a bit of progress. In our consultation on the technical detail of this policy, we have been engaging widely and in depth, and the views of MPs are an important part of that. As I said earlier, it has been a tough but necessary decision to end tax breaks for private schools. We believe it is the right decision, and one we need to implement as soon as possible to help raise the funding that we need to deliver our priorities for state education in this country. We are determined to make sure that education, which is available for all, is of the highest possible quality, because that is how we ensure that we meet the aspiration of every parent to get the best possible education for their children.

--- Later in debate ---

[Alicia Kearns (Rutland and Stamford) (Con)]

I welcome the hon. and gallant Member for North East Derbyshire (Louise Jones) to her place. We need more people in Parliament who have service in their hearts. I also thank her for her good comments about her predecessor and in particular for her comments about Corporal Riley, which I know my hon. Friend the Member for Huntingdon (Ben Obese-Jecty) felt deeply. I thank her for taking the time to do that.

Sadly, I turn to a decision by the Government that does not have service to the country at its heart. This is a cruel, vindictive policy that will damage the prospects of children in both state and independent schooling. It is particularly damaging also for rural economies, which seem to have been entirely overlooked. In Rutland and Stamford, we have 10 independent schools that cater for a vast number of pupils—particularly those from military families and those with SEND—and what is common to all those families is how hard they work for their children to have the right education for them.

I have received heartbreaking emails from parents who have had to sacrifice the education they have worked so hard for. One was from a mother of twins who are midway through their GCSE year. There is no space in the state sector for them—twins who now question whether they will be able to sit their GCSEs because of this policy.

The entire county of Rutland has zero available state school spaces in years 10 and 11, and only three SEND spaces.

[Ben Coleman (Chelsea and Fulham) (Lab)]

rose—

[Alicia Kearns]

Is the hon. Gentleman just going to stand, or will he ask to intervene?

[Ben Coleman]

Will the hon. Member give way?

[Alicia Kearns]

There we go.

[Ben Coleman]

I am most grateful to the hon. Member. Does she not think that a little bit of an apology from her and her colleagues for the disgraceful SEND system that they left as a legacy is merited? As people cannot get EHCPs or support in the state sector, and councils and cash-strapped families are turning to the private sector, should she not apologise for the legacy that she and her colleagues have left the country?

[Alicia Kearns]

I am so pleased that the hon. Gentleman is repeating the lines that the Whips gave him for this morning’s Westminster Hall debate. I was not talking about SEND. It is deeply discourteous to the House to intervene on a Member with a point that is completely separate from the point that they are making; he will come to learn that in time.

As I said, the entire county of Rutland has zero available state school places for years 10 and 11. That means children will now not be able to get their education. I ask the Minister directly: what would he say to 16-year-olds who are to be forced out of their school in January with no alternative place to go and nowhere to do their studies? This is a vindictive policy, and it is absolutely wrong.

I want to touch on the contribution to local rural economies. In Rutland, education is the biggest single employer. As I said, we have 10 schools across 11 sites. In 2022-23, one secondary school in Rutland and Stamford contributed £50 million to UK GDP. It contributed £30 million to local GDP, £14 million was paid in tax to HMRC, and savings of £5.5 million were made to local schools through school places that were not taken. Some 70% of this school’s expenditure is on staffing and, with the imposition of VAT, it is forecast to make a loss for the first time ever. Jobs are being lost. When 70% of the budget is staffing, what does a school do? Cuts have to be made in people’s jobs. More than 2,000 people locally are employed directly by independent schools, and that is not to mention those working in the supply chain, whether driving buses, providing food or flowers, or working in cafés and shops. Rural economies do not have many options at the moment, and independent schools are a bedrock for them. The economic impact of these jobs on rural communities should be considered in an impact assessment, but I very much doubt one has been carried out.

Looking at the national economic picture, the Adam Smith Institute concluded that every child in independent schooling contributes £28,000 to the public finances. The average £2,700 saved on VAT makes a return to the taxpayer of 1,040%. If 5% of independent school pupils leave, the Government will generate £1 billion through this policy. If 10% to 15% of pupils leave, the Government will generate no revenue. If 25% of pupils leave, the Government will lose £1.58 billion, because they are doing something vindictive and wrong.

[Richard Foord (Honiton and Sidmouth) (LD)]

Does the hon. Lady agree that people putting their children through independent school are paying twice? They pay once through their fees and once through income tax. If they are removed from the system, that will mean less money for education.

[Alicia Kearns]

The hon. Gentleman is absolutely right. These parents have already paid into the state school system as if their child were going to state school, and they are net contributors to the local education system and the tax system, because they have chosen to ease the pressures on state schools by taking their child out. This is basic economics, and that is why the Government do not understand it.

Independent schools make a huge and optional contribution to the national teachers’ pension scheme. Some could choose to mitigate their increased costs from the imposition of VAT by opting out of the TPS. What assessment has the Minister made of the impact that this would have on the financial viability of the TPS?

Additionally, a number of independent schools in my constituency provide homes for children in foster care who would otherwise have no stability. These are the kind of schemes they will have to stop. That will again result in increased costs and impact on the state sector, which will have to pick these things up.

It is a long-standing international norm to exempt education from sales taxes. Nurseries, universities, tutors and other education providers are not included in Labour’s proposed VAT increase, although as per my intervention on my right hon. Friend the Member for East Hampshire (Damian Hinds), there is a toddler tax, which any parent with a five-year-old child in nursery school will suddenly find themselves paying. It is ironic that the Labour party says that it believes in free university education for all, yet many who take up apprenticeships or go into work will not go to university. Why does Labour think that all of us who do not go to university should pay for other people to go to university, but somehow, when it comes to this issue, we should pay for others?

There is also a question about the legality. Senior lawyers, including Lord Pannick, have argued that this proposal will breach European convention on human rights rules on educational choice and access. What assessment have the Government made of the legality of this policy?

I am already seeing the damage of this policy in the heartbreaking dilemmas facing families who have contacted me for help. For some pupils halfway through their exam years, there are no places in the state system. The requests are clear: the Government must delay the implementation until at least the end of this school year, so that children are not disrupted in their education. We need to exempt those pupils in years 10 to 13, so they can take their exams without the added pressure of a school move. We need to help local authorities to boost EHCP assessments rapidly, and we need to undertake a regional assessment of available state school places to exempt pupils who live in areas with no availability, such as Rutland.

I understand that the Labour party wants to make an ideological attack on education and choice, but I urge Ministers to sit down and think this through. The richest will continue to attend private schools and absorb the increased costs, while families who sacrifice day after day will suffer. For those who are interested, I did go to my local comprehensive, and my children go to their local comprehensive, but I think it is right that we support choice for all. Tony Blair once said, “Education, education, education.” I urge the Minister to listen to the ghosts of Labour past and to do what is right for all children at both state and private schools, not what is right for reasons of ideological dogma, which is what the Labour party is currently doing day after day.

[Several hon. Members rose—]

Winter Fuel Payment

Alicia Kearns Excerpts

Tuesday 10th September 2024 Commons Chamber

[Alicia Kearns (Rutland and Stamford) (Con)]

I rise to speak on behalf of the 20,800 pensioners in Rutland, Stamford and the Harborough and South Kesteven villages who will lose their winter fuel payment this winter. This decision affects millions of people who bought into our country’s social contract: you work hard, you pay your taxes and when you grow old, we will support you through your retirement.

I make two requests of the Labour Government, although I know that they will both be rejected. First, I ask them to delay implementation to give people more time to prepare. Older people are some of the most financially cautious in our society. They save, they go without, they avoid debt, and they give what they can to their children, their grandchildren and their friends in need. A delay of a year would give people the time to claim pension credit, if eligible, to face the upcoming increase in energy bills and to plan for the next winter.

Secondly, I ask the Government to give an exemption to anyone suffering from a chronic or life-shortening illness. Since this cut was announced, I have heard from so many people, including Di, who emailed me out of concern not for herself, but for her husband Jeff, who suffers from cancer and has to wear three layers of clothes all year round, even in the summer. As Di put it, the decision—and it is a decision by the Prime Minister—is penalising the ill. Her “hubby will suffer” and she is shattered.

We will hear a lot from the Government about hard choices, but if I were asked to choose between heating the homes of the elderly, cancer sufferers and dementia sufferers or giving a no-strings-attached pay rise to train drivers already on nearly £70,000, the choice would be pretty damn obvious to me. But then, ASLEF did not donate to my election campaign.

People say that we can tell a lot about a society by how it treats its most vulnerable and its eldest. If we apply that test to this cut, anyone with a heart will know that it is wrong. I, for one, will never vote to deprive the most vulnerable and our elderly of warmth.

Public Spending: Inheritance

Alicia Kearns Excerpts

Monday 29th July 2024 Commons Chamber

[Rachel Reeves]

I thank my hon. Friend for that question. We were determined to protect the most vulnerable, which is why we made the decision to ensure that the winter fuel payment would still be paid to the poorest pensioners on pension credit. More than that, we will work with local government and charities to increase the take-up of pension credit, so that everybody who deserves pension credit gets it, and with it the winter fuel payment.

[Alicia Kearns (Rutland and Stamford) (Con)]

We all remember Gordon Brown’s raid on pensions. It has taken just three weeks for Labour to revert to type, and it is pensioners who are suffering most. Martin Lewis has already criticised the decision online. On the estimates, the right hon. Lady cannot claim that, when permanent secretaries were signing off these estimates—over the weekend, I assume—they did not know about these supposed holes, but if that is so and they did sign them off with holes in them, that would be a breach of their legal duties. So will she be investigating them, or will she be apologising to them for throwing them under the bus today?

[Rachel Reeves]

Instead of blaming civil servants, the hon. Lady should blame the people who are really responsible, and that is the previous Government. The country did the right thing by kicking them out three weeks ago. They deserve never to get their hands on power again.

Wagner Group: Sanctions Regime

Alicia Kearns Excerpts

Wednesday 25th January 2023 Commons Chamber

[James Cartlidge]

I am grateful to the right hon. Gentleman: he takes us back to when I stood opposite him in our Ministry of Justice days.

I am not being evasive: I am standing in front of the House of Commons to answer the question. The right hon. Gentleman mentioned the Prime Minister, and he is right that my right hon. Friend was Chancellor of the Exchequer at the time. I shall explain the process. I am not going to comment on the individual case, but without prejudice to it and talking about the general situation that pertains to how OFSI considers such cases, there is a delegated framework whereby decisions on legal fees for persons designated under all the sanctions regimes are routinely taken by senior civil servants. I want to be clear on that. We are not aware of any case of legal fee decisions under any of the sanctions regimes being taken by a Minister. I want to be clear with the House on that.

The point about SLAPPs is really important. I was at the Ministry of Justice when it was a live issue. It was first raised in a Backbench Business Committee debate by my right hon. Friend the Member for Haltemprice and Howden (Mr Davis), in conjunction with the right hon. Member for Birmingham, Hodge Hill (Liam Byrne), and I responded to that debate for the Ministry of Justice. Let me set out what we are doing. We have been clear as a Government that SLAPPs represent a clear abuse of the legal system, as they rely on threatening tactics to silence free speech advocates who act in the public interest. That is why it is often called lawfare. We ran a call for evidence on strategic lawsuits against public participation and libel reform from March to May 2022 in light of reports that Russia and its allies might be funding litigation against free speech in the UK. We published our response to the call for evidence on 20 July 2022, having closely analysed 120 responses from media, legal and civil society professionals, and we are committed to tackling SLAPPs.

I can confirm that targeted anti-SLAPP reforms will include a statutory definition of SLAPPs, an early dismissal process and costs protection for SLAPPs cases. The Government have committed to primary legislation to make those reforms a reality as soon as parliamentary time allows.

[Alicia Kearns (Rutland and Melton) (Con)]

I understand that the decision was made by civil servants. Will my hon. Friend commit to considering whether we need to introduce ministerial oversight and how quickly that should be done? It is gravely concerning that no civil servant thought that this might need political oversight or some sort of political intervention. Will my hon. Friend also consider the proscription of the Wagner Group, which is a state terrorist organisation responsible for war crimes around the world?

Finally, I have been disappointed by the Government’s response to my multiple written questions about the Wagner Group and the new centre it has set up in Serbia—it is an enormous installation. We are seeing heinous activities in the Balkans, especially around the illegal Republika Srpska day that took place. So my asks are introducing ministerial oversight; looking at the Wagner group in Serbia and putting pressure on the Serbian Government; and finally proscribing that organisation.

[James Cartlidge]

My hon. Friend the Chair of the Foreign Affairs Committee speaks with great expertise on these matters. She makes some points that are for other Departments to consider, but I will ensure that they are fed back. On the point about the specific process in relation to OFSI, I will not comment on the individual case, but there is a general point about seeking clarification. I can confirm that we will undertake an internal review to see how such cases are considered in the future, and we will say more on that in due course.

Oral Answers to Questions

Alicia Kearns Excerpts

Tuesday 20th December 2022 Commons Chamber

[Victoria Atkins]

For the majority of businesses trading in Northern Ireland, VAT continues to be accounted for in much the same way as when they trade in the rest of the UK. We are confident that the implementation of the Northern Ireland protocol for VAT mitigates the risk of double taxation in Northern Ireland. We know of one example and HM Revenue and Customs is working with that business to see what more can be done, but I am happy to take up the hon. Gentleman’s question outside the Chamber.

[Alicia Kearns (Rutland and Melton) (Con)]

Merry Christmas, Mr Speaker.

Rural poverty is devastating, but it is often hidden by the relative affluence of surrounding rural areas. To ensure that councils have the funding that they need to support those who are living in rural poverty, will the Chancellor and his officials meet me to discuss putting social mobility into funding formulas alongside deprivation, to get councils what they need and to end rural poverty?

[John Glen]

I would be very happy to meet my hon. Friend. Representing a rural constituency myself, I totally understand the tension in fully reflecting the needs of a sometimes diverse set of communities. I am happy to meet her to discuss the matter further.

LGBT Conversion Therapy

Alicia Kearns Excerpts

Monday 8th March 2021 Westminster Hall

[Alicia Kearns (Rutland and Melton) (Con)]

When I was elected, I said that I would be a voice for those whom others seek to silence, and I stand here today to do exactly that. The need for this ban is quite simple: victims of conversion therapy currently have no legal recourse to justice and, without a legislative ban, lives are being destroyed.

Last year, I submitted to the Minister a proposed legislative framework, backed by more than 15 major LGBTQ advocacy groups and 10 representatives of all major faith groups in the UK. It sets out a framework that would enable prosecutions to stop this heinous practice and enable statutory bodies to give victims support and protection. It would enable us to identify serial perpetrators, stop the advertising of this fraudulent quackery, protect potential victims and prevent them from being taken abroad.

It is only through legislation that we will achieve the protection that those communities need and deserve. I thank the Prime Minister, the Women and Equalities Minister and the Health Secretary for their support for a ban. I want to focus today on the arguments made by those opposing the legislation. First, on the idea that people can consent to this so-called therapy, Parliament and our courts have long recognised that one cannot consent to bodily harm and torture, and conversion therapy is that. Victims of conversion therapy bear mental and physical scars for life, and for that reason consent cannot be freely given.

Secondly, it is said that a ban somehow infringes on the practice of religion. It does not. Religious liberty is fundamental, but so too is people’s liberty to live their lives free from identity-based violence and abuse. We must protect the conversations between religious leaders and members of their flock. This is not a fight between faith and unbelief; rather, it is about protecting the freedoms of the LGBTQ community and stopping those who abuse their authority. We must protect people from those who carry out practices that would never be accepted by any qualified mental health professional. For that reason, representatives of every major faith group, including the Church of England, have backed a ban. The legislation I propose does not prevent individuals from seeking guidance from faith leaders.

Thirdly, it is argued that a ban will not end the practice, and that the worst forms of conversion therapy are already illegal. A practice such as this can never truly be eradicated, but legislation gives victims legal recourse. We need specific legislation, like we have for female genital mutilation, rather than relying on existing general bodily harm laws.

Fourthly, it is argued that conversion therapy is not happening in our country, or that it is happening to very few people and is not that severe. How many lives have to be lost for it to be deemed to be worthy of tackling? In our country, people are being forced to eat purifying substances. They are beaten and whipped, forced to undergo exorcisms and corrective rape, forced into marriages and made to undergo genital mutilation. People in my party have been threatened with, and forced to go through, conversion therapy. Two thousand people in the country have had the courage to tell the Government that they have been subjected to it, but how many more suffer in silence?

Finally, some opponents claim that transgender individuals should be removed from the legislation. It is quite straightforward to introduce a safeguard for professionally accredited individuals who can assist persons considering undergoing a gender transition. Conversion therapy falls disproportionately on this community, and any ban that excludes trans people would make legislation self-defeating.

On my election, I came to Parliament with one legislative change I wanted to deliver, which was a ban on conversion therapy. I particularly pay tribute to the campaigning that took place before I came to this place by my right hon. Friend the Member for Pudsey (Stuart Andrew) and my hon. Friend the Member for Finchley and Golders Green (Mike Freer), and all those LGBT groups and survivors who have worked so hard. To my fellow MPs I say that, as legislators, we have a duty to protect the vulnerable and deliver a ban. To the survivors of conversion therapy and all those hurting—to all those made to feel ashamed—I say today that love is not conditional. You do not need to change. Love is not a pathology, and it damn well does not need treating.

Lockdown: Economic Support

Alicia Kearns Excerpts

Tuesday 3rd November 2020 Commons Chamber

[Steve Barclay]

As we referred to earlier, the point is that the package of support includes the £9 billion of welfare measures and the support that is available through local authorities and targeted at their discretion. I have also set out that there are those within that excluded population, for example those who were employed, who may be able to qualify for the extension, but for the reasons that we have covered in a number of earlier replies, part of the challenge from the Public Accounts Committee has been ensuring that we have the right operational controls in place, and that has been one of the difficulties with the cohorts to which the hon. Gentleman refers.

[Alicia Kearns (Rutland and Melton) (Con) [V]]

The Government’s bounce back and business interruption loan schemes have made a huge difference across the country, including the £90 million to support businesses in Rutland and Melton. What assessment has the Chief Secretary made regarding the macroeconomic impact of these loan schemes?

[Steve Barclay]

I very much welcome the impact that the various support measures have had on Rutland and on the businesses in my hon. Friend’s area. As for the impact of the various measures, the Office for Budget Responsibility produces an independent assessment of that, and it will do so on 25 November. That will provide an updated position, addressing the impacts to which she refers.

Oral Answers to Questions

Alicia Kearns Excerpts

Tuesday 11th February 2020 Commons Chamber

[Katherine Fletcher (South Ribble) (Con)]

2. What steps he is taking to allocate funding for improved transport infrastructure throughout the UK.

[Alicia Kearns (Rutland and Melton) (Con)]

4. What steps he is taking to allocate funding for improved transport infrastructure throughout the UK.

[Nicola Richards (West Bromwich East) (Con)]

19. What steps he is taking to allocate funding for improved transport infrastructure throughout the UK.

--- Later in debate ---

[Rishi Sunak]

My hon. Friend is absolutely right about the importance of relieving congestion for improving day-to-day quality of life and driving economic growth. I am pleased that last year her constituency benefited from a £30 million investment to do just that. But there is always more we can do, and I would urge her to consider the Department for Transport’s pinch points fund.

[Alicia Kearns]

Places such as Melton Mowbray in my constituency have very low unemployment thanks to a thriving food manufacturing sector and the business-friendly policies of this Government, but we need to see wages rise locally. What investment has my right hon. Friend’s Department made to make sure that local councils can provide the transport needed, particularly buses, so that people can get to work and revitalise our high streets?

[Rishi Sunak]

I am delighted to hear about the economic growth that is happening in my hon. Friend’s constituency. I know that her local councils are a key part of driving that. I am pleased to say that the Government announced today a £5 billion package to support local transport infrastructure such as buses and cycleways, alongside our existing £3.6 billion towns fund, which 16 different places across the east midlands have benefited from.

Economy and Jobs

Alicia Kearns Excerpts

Monday 20th January 2020 Commons Chamber

[Andrew Bridgen (North West Leicestershire) (Con)]

It is a great honour to speak in this debate and to follow the maiden speech of the hon. Member for Nottingham East (Nadia Whittome). Nottingham is a city that I know well, having lived there for three years while I was at the excellent Nottingham University. I congratulate her on her maiden speech, and I also congratulate other colleagues who have spoken for the first time in the Chamber today. I and the rest of the House look forward to their further contributions in due course.

In common with much of the country, North West Leicestershire has certainly seen a jobs miracle since 2010, when the Conservatives came into Government and I took my seat from Labour. Over the past decade, unemployment has fallen by more than 60% in my district, and perhaps even more importantly, youth unemployment has fallen by more than 70%. That has been achieved by working with a Conservative-controlled district council and a Conservative-controlled county council, and by playing to our strengths—namely, the connectivity of the road network provided by the M42. That and the environmentally based regeneration project of the national forest are both long-term visions and legacies of previous Conservative Governments from which my constituents and visitors to my constituency continue to reap the benefits.

According to ONS figures out this year, my constituency is now rated as not only the highest on the economic prosperity index but the happiest place to live in the east midlands. The long-term regeneration in my district, together with that of our neighbours, is one that many areas of the country would do well to look at as we prepare for our post-Brexit future. My constituency benefits from being not only the UK’s centre of population, but at the centre of the golden triangle of Leicestershire, Derbyshire and Nottinghamshire—three counties all benefiting from more jobs, more economic growth and, uncoincidentally, more Conservative MPs since 2010.

The east midlands is doing well, but we could be doing much better. While the counties appear to be thriving, I am unsure whether the same could be said for our three cities, with their much higher levels of deprivation and unemployment. My constituency has thousands of jobs coming on stream—more than 10 times more jobs in the next three years than I have total unemployed in my constituency—but we do not have an extensive public transport network to get the unemployed from Nottingham, which we have just heard about, from Derby and from Leicester to the employment hub around East Midlands airport and the east midlands gateway.

My constituency does not even have a railway station, despite being this country’s centre of population, and my constituents are right to look on enviously at the investment in infrastructure in the west midlands under Mayor Andy Street. Perhaps this is a lesson that we need to take on board in the east midlands to stimulate further economic and employment growth in our region. Time has come for a three cities and three counties Mayor for Nottinghamshire, Derbyshire and Leicestershire —something I have been requesting for many years.

Local road connectivity through the M1, the M42, the A50 and the A453 has stimulated significant economic growth in my district and in our neighbours. My seat now has the highest economic growth outside London and the south-east, and the election was proof not only that the majority of the country is fed up with rich remainers telling them what is good for them, but that those outside London are fed up with the metropolitan, southern-based Department for Transport telling them that there is not enough money or a case for their local transport projects—projects that would have a genuinely transformational effect on the lives of our constituents. At the same time, however, the Department wants to commit more than £100 billion to HS2 to get a tiny proportion of our population from nearly London to nearly Birmingham, and perhaps beyond, some day in the far future.

[Alicia Kearns (Rutland and Melton) (Con)]

Does my hon. Friend agree that if we truly want to support the entire east midlands—particularly if we sensibly scrap the HS2 programme, which does not help or level up the entire country—we need to look at the A1, which is a key road through the east midlands that connects us up to the north and across to Peterborough. The Department for Transport needs to listen to views on the A1 and give us the transport and the roads that we deserve.

[Andrew Bridgen]

I thank my hon. Friend for that intervention. Since a third of all private sector jobs in North West Leicestershire are distribution or logistics-based, I have a wider interest in the road network. I would support improvements not only to the A1, but to the A5, which also serves the east and west midlands.

HS2 is what happens when people in London tell the midlands and the north that they know what is best for them. To suggest that all we need to be happier and wealthier is to get to London faster is, frankly, insulting. During thousands of conversations with my constituents, not one has said to me that their transport problems will be solved by getting to London 20 minutes faster, but they do tell me that they need a train line or improved public transport to get a job and to get to work.

My constituency has no railway station, and Coalville—my major conurbation—is the fifth largest town in the country without one, but an existing railway line between Burton and Leicester that passes through Coalville, which would serve hundreds of thousands of people, cannot obtain funding for a mere fraction of the cost of HS2. I have calculated that the Ivanhoe line could be reopened for passengers for around one thousandth of the current estimated cost of HS2. To deliver for the vast majority of people in the midlands and the north, we need to scrap that white elephant project and concentrate the resources on local connectivity, which will have an impact and benefit for the many and not just for the few.

The Prime Minister rightly recognises the need to level up the regions. For example, London recorded a 1.1% annual rise in output per person to £54,700 in 2018, increasing the per capita gap to the poorest region, the north- east, where growth was only 0.4%, to £23,600 per head.

I have already spoken about connectivity, and I make the point again that the north-east will in no way be levelled up when a huge proportion of our infrastructure investment is spent on getting those who can afford it to London a few minutes quicker. Connectivity within our regions is key to levelling them up and reducing the UK’s dependence on London. We need to see investment in our regions, and that investment needs to be decided locally rather than in Whitehall.

This Government have a fine record on the economy, considering the dire position we inherited from the previous Labour Government. With the deficit at a more sustainable level of 1.8% of GDP, we need to build a country in which talented young people from constituencies such as mine do not have to go to London to progress their careers but have high-end opportunities in the midlands and the north. We need to build a country with the connectivity so that my constituents get their railway station and have the option of sustainable public transport, and so that people in our neighbouring cities can access the huge employment opportunities around East Midlands airport and the east midlands gateway. I want a future for the east midlands in which we are able to retain a larger number of the fine graduates we are getting every year from our excellent universities.

Turning to the national picture, the UK is now in a strong position to realise the benefits of Brexit, with a Prime Minister who believes in the opportunities it presents. Recent figures from the ONS show that, in the last 12 months, UK exports outside the EU grew by 6.3%, while exports to the European Union grew by only 1.3%. Those figures are being achieved before we have even negotiated our own free trade deals. We know there are huge opportunities with the USA, and those talks have already been opened up.

Optimism is also soaring among Britain’s leading companies and employers. The latest Deloitte chief finance officer survey shows that business sentiment has risen at its fastest rate for 11 years following the Conservative victory at last month’s election. Thirty-eight per cent. of CFOs expect to increase capital expenditure and 27% expect to hire more employees over the next year.

It is clear that business, freed from the shackles of the uncertainty that the previous Parliament created, is now in a position to invest in a post-Brexit Britain with a Government who believe in business and believe in our country’s future.