National Insurance Contributions Bill

Andrew Bingham Excerpts

Thursday 13th January 2011 Commons Chamber

I commend the amendment to the House. I hope that the Minister has reflected over Christmas and new year on the arguments that we made in Committee, reflects on those that we have made today and either responds positively to them or at least explains why my right hon. and hon. Friends and their constituents should lose out on the scheme.

[Andrew Bingham (High Peak) (Con)]

I support the general idea and hear the points that Opposition Members make, but we have to remember that in High Peak setting up a business is not easy. It is not easy anywhere in the country, but we need to look at rebalancing the economy, and in the north-west, or in the east midlands where High Peak is, we have to contend with such issues as rurality and communication links that are not of the same gravity in the south-east. Members might recall how I went on about the Mottram-Tintwistle bypass, but that road link in and out of High Peak makes it difficult for businesses to get going and to survive.

I remember setting up a business years ago and how difficult it is. On transport costs, we used to deal predominantly with south-east companies. We had to get goods up from the south-east and deliver them around the country, which created extra costs. Hon. Members might smile, but one of the things I have noticed since being elected to the House is that it is so much warmer in the south. I can assure hon. Members that it is cold in High Peak and that there are extra heating costs and numerous other extra costs and overheads. The measure is an incentive to business men and, importantly, new business men to start their businesses in the north.

[Dr Creasy]

I draw the hon. Gentleman’s attention to the fact that business men and women in the south-east may well be familiar with a concept called the living wage, which reflects the high cost of living in London and therefore some of the difficulties that new employers might face in attracting staff because they have to pay a higher wage in the south-east. It is not all grim up north.

[Andrew Bingham]

We have expensive houses in High Peak—I have seen something on my BlackBerry today about house prices being expensive. We have issues, but it is not grim up north. Speaking as someone who is technically the Member for Royston Vasey, as the programme concerned was filmed in my constituency, I implore all southern MPs to come to High Peak. It is not grim. [Interruption.] It is beautiful. Thank you; we agree on something.

I reiterate the point that there are challenges to setting up businesses outside the south-east—for example, slower broadband. That is another hobby-horse of mine. The measure is an incentive. It will get local people setting up local businesses in the north and outside the south-east, which will rebalance the economy. I hope that more businesses will flow up north to High Peak and other constituencies. The measure is an excellent policy. We hear all about the cuts, but they are having to be made because of the economic carnage left by the Labour party. If we acknowledge that, we might get somewhere.

[Stephen Timms (East Ham) (Lab)]

I am very grateful to my right hon. Friend the Member for Delyn (Mr Hanson) for tabling the amendment and for the fact that he has already referred to the Thames Gateway. I want to refer to issues associated with the Thames Gateway area and the borough I represent, Newham, together with my hon. Friend the Member for West Ham (Lyn Brown) who is in her place.

It is clear that the Government have simply got this wrong. If we consider the criteria that the Government have said should be applied to choosing where this incentive is available, as my right hon. Friend has said it is in those parts of the country where the proportion of public sector dependence is high that we need to encourage new businesses to start up and take on employees. Of course that is exactly the situation and is what is required in the Thames Gateway area on the east side of London. It is absurd to omit from the scope of this initiative areas that the Government have themselves identified for the promotion of new business growth.

I put it to the Minister that he is not being invited to support the policies of the Labour party or, indeed, any other institution; he is being invited to support the policies of the Prime Minister. It is extraordinary that the one area of the country where the Prime Minister has called explicitly for the creation of Silicon Valley-style economic regeneration based on high-tech start-ups is being missed out from the initiative. Let me refer the Minister to the speech that the Prime Minister gave in east London on 4 November—his east end tech city speech—and point out some of the comments he made. The Prime Minister said:

“Only three years ago, there were just fifteen technology start-ups around Old Street and Shoreditch…it’s clear that in East London, we have the potential to create one of the most dynamic working environments in the world. And I believe we can really turn this vision into a reality.”

I agree with the Prime Minister. I am baffled by the fact that in this Bill the Prime Minister’s initiative is being undermined, and I want to find out from the Minister why that is so. I hope he will accept the case that my right hon. Friend the Member for Delyn has made and, even at this late stage, accept the amendment.