(5 years, 7 months ago)
Commons ChamberI am a bit more optimistic than the hon. Gentleman in that respect, not least because of the announcement just yesterday from the Advanced Propulsion Centre, which he knows very well, about the opportunity of nearly £5 billion for manufacturers, including in the west midlands, to participate in the growing market for electric vehicle batteries. It is therefore crucial that we drive productivity forward. He will also know of the work that Jürgen Maier is leading, as part of the Made Smarter Review, to capitalise on the opportunities. However, as I have always been clear with the House, we can best advantage those manufacturers if they are able to continue to trade freely and without frictions with the European Union.
Can the Secretary of State confirm that the Government have held discussions with a range of businesses, including those with complex customs requirements and those that export and trade mainly with the European Union, in formulating all their plans?
I and my colleagues meet very regularly—every day—with businesses in all sectors and in all parts of the country. I think that there is a strong feeling in the business community that we need to bring to a resolution the question of our future relationship with the European Union. The longer this situation goes on, the more attractive investment decisions are put on hold, and they could be creating jobs now.
(5 years, 9 months ago)
Commons ChamberMy hon. Friend is absolutely right. The Taylor report called for two-sided flexibility, so that employers and employees can make a choice as to what the best arrangements are for them both.
The hon. Member for Nottingham South (Lilian Greenwood) says that the east midlands has the highest proportion of people on zero-hours contracts, but she failed to add that we also have the highest economic growth outside of London and the south-east. Does my right hon. Friend agree that the best guarantees of improving workers’ rights, conditions and wages are a strong demand for labour, a growing economy and the control of unskilled migration, which is something we will be able to do after Brexit?
I agree with my hon. Friend that having jobs and vacancies available is the best source of security for people in this country. We have a proud record of having secured that over the past eight years.
(6 years ago)
Commons ChamberMy hon. Friend is absolutely right. One of the advantages of small modular reactors is that they can be deployed in a wider range of locations than the larger traditional reactors, and that is part of the attraction recognised in the sector deal.
I have considerable sympathy for the Secretary of State’s position in this matter. Does he agree that Toshiba’s much-publicised problems in this area are not of his making and that had Toshiba been willing to keep open its troubled subsidiary on the basis of this one contract, he could have been accused of getting poor value for money for the taxpayer?
It is up to the company, as a commercial investor, to decide its future strategy. It has had a major financial problem as a result of the problems experienced by Westinghouse. We have always been clear that these projects need to be commercially backed, and Toshiba has taken a commercial decision to exit from overseas nuclear. That is a matter for it.
(7 years ago)
Commons ChamberI will indeed. Throughout my time in this House and in this Government, I have promoted the importance of places and local leadership and of ensuring that investment decisions benefit from local knowledge and local decisions. The Budget and the industrial strategy reinforce that. To have a prosperous United Kingdom, every part of it needs to be maximising its potential, so the strategy very much works with cities, towns and regions across the UK. We are inviting areas to promote local industrial strategies that state what needs to be done locally to make a particular town, city or county fit for the future and able to attract new business investment.
Following the Secretary of State’s announcement of the industrial strategy, we had a meeting in Leicester just yesterday to discuss the infrastructure needs of the east midlands. The east midlands has traditionally been at the bottom of the Government funding league for infrastructure, but it is delivering the highest economic growth and the fastest wage growth in the UK outside London and the south-east. Think what we could do if we had our fair share of infrastructure spending.
I will take that representation. My hon. Friend is right that the performance of the east midlands has been extremely positive. Some of its institutions—I think of universities in Leicester and Loughborough—are having a huge impact on the local economy. I look forward to visiting Leicestershire again soon to have discussions as part of the plan for local industrial strategies. I mentioned the fund for improving transport connections between city centres and the towns around them, and that is essential investment in the future competitiveness of our economy.
(8 years, 10 months ago)
Commons ChamberI am grateful to my hon. Friend. He is absolutely right: Izzi Seccombe does an excellent job not only in leading Warwickshire County Council but in her national responsibilities in the Local Government Association. She has been very persuasive in making the case for extra funding, recognising the costs of social care. She is one of the most influential and respected council leaders in the country, and my hon. Friend is lucky to have her.
I thank the Secretary of State for his earlier answers to my right hon. and learned Friend the Member for Harborough (Sir Edward Garnier) and my hon. Friend the Member for Bosworth (David Tredinnick), and indeed for accommodating a meeting with all the Leicestershire and Rutland MPs, at which we had a very frank exchange of views about local funding. Will he go a little further and explain what opportunities exist for North West Leicestershire and Leicestershire under the increases to the rural services delivery grant?
I am grateful to my hon. Friend for coming back after questions earlier to consider these matters. There are opportunities for Leicestershire; it and North West Leicestershire will gain in transitional funding. One thing we will need to do in the review is look at areas such as North West Leicestershire to see whether their resources and needs are adequately recognised not only in business rates retention but in calculations for things such as the rural services delivery grant.
(8 years, 10 months ago)
Commons Chamber14. What estimate he has made of the average difference in council tax paid by residents of urban and rural areas.
The average council tax has long been higher in rural areas than in urban areas. In response to the consultation on the local government financial settlement, several councils and hon. Members have pointed out the extra costs of providing services in rural areas—something that I am determined to address.
Figures from the rural fair share campaign show that those who live in urban areas receive 45% more funding than their rural counterparts, while at the same time those rural residents pay on average £81 more in council tax. Does my right hon. Friend agree that my constituents have every right to feel aggrieved about that inequality? What steps will the Government take to address that issue?
I have been looking carefully at the responses to the consultation on local government finance, including that from Leicestershire, which seems to make a perfectly reasonable point that the essential requirement is that the underlying formula should reflect the different costs of providing services in different places. If my hon. Friend is patient and comes back a little later, I shall have more to say then.
(8 years, 11 months ago)
Commons ChamberAs the hon. Gentleman knows, we are consulting across the country on whether to remove barriers to better local collaboration between all the blue light services. Such collaboration would be initiated locally, where it is wanted, for the purposes of providing a better service, if those changes would help.
Will the Secretary of State confirm that greater collaboration between the fire service and the police service necessary to reduce costs will not end the distinction between firefighters and police officers?
(9 years, 11 months ago)
Commons ChamberThe hon. Gentleman knows this area; we have debated it before. It is incumbent on all of us to encourage people to vote. Now that we have individual electoral registration, it is easier than ever before for young people to register; they just need to go to the website. Over the next few months, we need to encourage all citizens, especially young people, to exercise that right.
We are talking about devolving power to local people, but money is power. When my constituents find out that the central Government block grant for Birmingham is £640 per person when a combined grant for Leicestershire is £240 per person, the reform they will call for is fairer funding for rural areas.
Right across the country, we take the view that local people can be the best judges of how they spend the money. It should not be decided in Whitehall. Whether the money is spent in rural areas or in cities, we are pioneering a programme of getting money out of Whitehall and into the hands of local people.
(10 years, 6 months ago)
Commons Chamber5. What discussions he has had with the Leicester and Leicestershire local enterprise partnership on devolving powers and responsibilities from central Government.
I was in Leicestershire on 24 March this year to launch the Leicester and Leicestershire city deal, when I visited the Loughborough university science and enterprise park. The city deal will support the expansion of the science park by opening up new employment land. It will also increase investment in youth employment schemes and give tailored business support.
Last Friday, I spoke at the “North West Leicestershire means business” event at the world-famous Donington Park race track in my constituency. At the event, we heard contributions from the Leicester and Leicestershire enterprise partnership about their efforts to promote economic growth. Will my right hon. Friend outline how he believes the recent city deal will help to promote further economic growth across the county of Leicestershire?
I will indeed. I pay tribute to my hon. Friend for his support for the city deal, which includes not only the city of Leicester but the whole of the county of Leicestershire. One of the features of the city deal proposed by local businesses was to give support and guidance to small businesses that are seeking to expand. Grants of up to £1 million are available to small businesses throughout Leicestershire that have that potential. I know that he drew the scheme to the attention of his businesses and I hope that he will continue to do so.
(11 years, 3 months ago)
Commons ChamberI want to make some progress.
The Labour party’s policy, according to the Institute for Fiscal Studies, is to increase Britain’s debt by £200 billion. That would be ruinous, because—this is linked to living standards—that borrowing would fall to the ordinary working people of this country. They would suffer a double hammer blow: more money would be taken out of their incomes to repay debt and there would be higher interest payments on mortgages and business loans. A 1% increase in interest rates would cost householders with a £100,000 mortgage £1,000 a year.
Today and throughout the past three years, the Labour party has persisted in talking down the economy, but its policies would take down the country. In fact, one of the biggest sources of concern in the British economy today is the total absence of a credible economic policy from the people who in 20 months’ time aspire to be the Government of this country. That is of concern even to people in the Labour party. Even the noble Lord Mandelson said recently that the risk of pursuing Labour’s economic policy was too great:
“I don’t think you can really take a chance, I think the markets, whose confidence in us to pay back what we borrow—that confidence is the determining factor.”
He went on to say that
“a lurch in policy…would be quite a risk which I would not blame the chancellor for refusing to take.”
By the way, Lord Mandelson is a friend of the shadow Chancellor. He said:
“I also happen to like him…well, more than I used to.”
We are here to discuss the cost of living and the cost of living is Labour’s legacy. Of course families are finding it tough. The Labour party talks about the cost of living without any mention of its record in government on living standards. It was the Labour Government who doubled council tax. Even in the depths of the recession, when my hon. Friend the Member for Peterborough (Mr Jackson) presciently asked them to consider freezing council tax, as this Government have gone on to do, they flatly refused.
On that point, will my right hon. Friend join me in congratulating Conservative-run North West Leicestershire district council, which has frozen council tax for four years running, and in condemning the leader of the Labour group, who suggested that we should raise council tax by 2% this year?
I congratulate my hon. Friend’s council. We know that council tax is an important bill that people face. That is why when we came to office, knowing the pressures faced by ordinary working people and families, we froze it.
The same is true of the Labour party’s record on fuel duty. Its fuel duty escalator meant that what working people paid to fill up their car rose by more than inflation every year. Petrol would be 13p a litre more if Labour had stayed in office.
Energy prices for the home escalated under Labour. Between 1997 and 2010, the average domestic gas bill doubled. These matters were raised in our earlier exchanges, but the hon. Member for Leeds West omitted to say who the Energy Secretary was in the last Government. It was the current Leader of the Opposition. When I shadowed him across the Dispatch Box, these issues were not addressed, despite our urging him to do so.
In its 13 years in office, the Labour party failed to safeguard pensions. In one notorious year, it increased the state pension by 70p. This Government have restored the link to earnings. Labour presided over the biggest fall in the number of homes being built since the 1920s, with the consequence that rents have risen and, for the first time in 100 years, the proportion of people who own their own home has fallen.
(11 years, 8 months ago)
Commons ChamberI can confirm that the Clydesdale bank has now become part of the review, as have all the other principal banks. The hon. Gentleman has raised the case of his constituent with me before; even though the product was not within the review’s terms of reference, Clydesdale has agreed to consider it as part of the review.
I have constituents who are concerned that the FSA may come under pressure from the banks to water down its findings and reduce the scope of the redress scheme, to their disadvantage. What can my right hon. Friend say to reassure my constituents about that important issue?
My hon. Friend raises a very important point. The review is under the auspices of the Financial Services Authority, and each bank has had to appoint independent reviewers who are themselves accountable to the FCA. It is absolutely crucial that the objectivity they bring to bear cannot be compromised, and I have given the FSA clear feedback that it should have that in mind during the review.
My hon. Friend knows that that is a devolved matter. The guidance applies to England only. Obviously we had discussions with the Welsh Assembly Government when the Localism Act was passing through this House. They took certain powers, but the type of planning regime that they want is a matter for them.
The “green wedges” north of Coalville in my constituency have been shown to be the most valued area of green space in the entire county of Leicestershire. Will the Minister confirm that the new planning policy framework will give more power to local residents and the local council to prevent unwanted development of that valued area of land?
Yes, it will remove the imposition from the regional strategies and other top-down targets, and will also allow the designation of locally valued green space, in the way that my hon. Friend the Member for Cheltenham (Martin Horwood) specified.
I have been having some very constructive discussions with the wildlife trusts, in which they have made precisely that point. The hon. Lady will understand that I cannot pre-empt the outcome of the consultation, but I can say that we have heard their perfectly reasonable representations and have listened very carefully.
There has been considerable outcry about the presumption in favour of development in the new framework, but is it not correct that there has been such a presumption in our planning framework for the past 40 years?
My hon. Friend is right, but the presumption in the draft framework is in favour of sustainable development and it is very important that development that would damage the future environment and social aspects of our towns, cities and countryside does not go ahead.
(13 years, 5 months ago)
Commons ChamberI would be very happy to extend my trip to include the black country as well as Worcestershire.
Let me take the opportunity to set out some of the background to the process that has resulted in such an enthusiastic bid from Kidderminster. Like my hon. Friend, I pay tribute to and recognise the breadth of support that he has been given. The fact that Mr Woodman and his colleagues from Worcestershire have come to the House today shows the depth of support for the case that my hon. Friend mentions.
The coalition agreement, which was published a year ago, sets out two overriding aims for the Government’s term of office. The first was to get the economy back on track. The second was to achieve an historic shift in power and influence from central Government to local communities. What we are discussing encapsulates both aims. It is about living up to economic potential and realising that by giving communities their head and the ability to drive growth themselves.
This policy addresses the situation that we had before the election. My hon. Friend referred to the artificial constraints that divided some areas of the country and forced others into an uncomfortable relationship. The previous approach of regional development agencies being imposed from the top down clearly went against the grain of our historical geography and of how people live their lives locally. To that extent, it suppressed rather than enhanced the ability of different parts of the country to establish their economic identity in the same way that they have always had different characters. Part of the purpose of this degree of decentralisation is to empower different parts of the country to prosper economically.
Has the Minister given any consideration to allowing a local enterprise partnership to have more than one enterprise zone at the same time if they are of a small size? Such an approach would suit an enterprise zone in the town of Coalville in Leicestershire in my constituency.
My hon. Friend makes a powerful point. I did not include Leicestershire in my list of places that are represented. One characteristic of local enterprise partnerships is that they are of different sizes. We have made it clear in the guidance that we expect an LEP to make one nomination, but I hear what he says and other parts of the country, especially areas that have larger LEPs, have made a similar point. I will certainly reflect on that.
The purpose of LEPs is not just to reflect, though they do, the economic geography of the areas that they cover. In contrast to the previous approach, whereby areas had to conform to regions that were administratively determined in Whitehall rather than locally, when my colleagues and I considered how we could establish LEPs nine months ago, we gave careful thought to what areas they should cover and came to the decision that we should give people the chance to nominate the most appropriate areas and to specify the natural connections. I feel justified in giving people that possibility, because LEPs have been formed that frankly would not have been invented in the Government. They represent a reality on the ground that does not conform to the uniformity that tends to come from the central Government approach.
My hon. Friend the Member for Wyre Forest is vigorous in his promotion of the Worcestershire local enterprise partnership. I think also of north-east England, where the Tees valley—my home town of Middlesbrough and the surrounding towns—has asserted its unique characteristics. It wants to have a strong voice and to take advantage of the opportunities that have been presented, which in many cases were submerged in the old region of the north-east, important though the connections are across that wider area. Other LEPs recognise the natural economic connections between parts of the country, even though they may be in different counties. For example, the Coast to Capital LEP covers the area from Croydon down to Brighton. The area has a lot in common and businesses see it as important.
Recognising the appropriate areas was the first step, but the second was to ensure that local enterprise partnerships were genuine partnerships—combinations of business, local communities, the voluntary sector and social enterprises. All the bids that we approved represented strong partnerships, with a degree of enthusiasm that has been striking. There is greater enthusiasm than can be obtained from a body that is a creature of government. The fact that the bid my hon. Friend described enjoys such strong business support is testament to how energy can be tapped if business and communities get the chance to work together.
The approach that we are taking in encouraging local enterprise partnerships to make decisions locally in the best interests of their population is reflected in other parts of our policy. In planning, we are introducing reforms inspired by the work that my hon. Friend the Member for Henley (John Howell) performed for the party in opposition, which will give local communities the opportunity to influence and shape their area. That is not just about housing, important though that is. Communities everywhere in the country want to have regard to their future economic prosperity, and it is important to give them the chance to promote a local plan and neighbourhood plan that reflect their best traditions and their potential, rather than make them conform to a high-level regional strategy that does not represent and reflect the different localities within it. My hon. Friend the Member for Wyre Forest said that his local council has its core strategy in place, which puts it in a strong position to take advantage of the new planning powers, including neighbourhood plans. In some areas, business will want to take a leading role in those plans along with residents, and I dare say that may be the case in Kidderminster.
Through the new homes bonus and reforms to the community infrastructure levy, we want to ensure that some of the benefits of growth stay within the community, so that they can be used to reinforce that growth and ensure that it is genuinely sustainable. People who live in an area must have a genuine reason to say yes to growth.
Up and down the country, the local enterprise partnerships that we have established are already setting a vision for the future. They are driving growth, planning for new infrastructure and seeking to attract jobs and investment. I know that the Worcestershire LEP, in particular, is in the vanguard of the movement nationally.
Let me say a word about enterprise zones themselves. As my hon. Friend knows, they were announced in this year’s Budget, and we want to see 21 of them across England. We want them to be hothouses for growth and places in which we create the conditions for the public and private sectors to work closely together to create new jobs, set up new firms and attract new investment. They are there to help places with strong potential to grow to do so quickly, and he has made a strong case for Kidderminster having that potential. There is to be no hanging about, and we will make the decisions during the summer. It is important that the enterprise zones are up and running with good speed, so that the opportunities for the areas in question and for the country are maximised. I know that if it is successful, the enterprise zone bid that his LEP has made will bring with it an enthusiasm to get on with it.
On what an enterprise zone comprises, first, as my hon. Friend knows, it will involve a 100% relief from business rates, worth up to £275,000 over a five-year period. All the business rate growth generated by the zone for a period of at least 25 years will be kept by the LEP for reinvestment in the wider area. Greatly simplified planning zones will be in place through local development orders, making applications quicker and more certain for developers, and the Government will ensure that superfast broadband is rolled out across the zones.
That is the set menu, the standard elements that will be common to all local enterprise zones. However, the fact that they will be driven and promoted by the LEPs means that those elements can be adapted and supplemented to reflect the particular needs and priorities of the area. There will be an opportunity to consider the use of tax increment financing to support the long-term viability of a zone. Some aspects of local government funding are being reviewed in the local government resource review that is taking place.
We are determined that the local enterprise partnership should nominate an enterprise zone for consideration. That is the right approach, rather than Ministers centrally deciding where a zone will be. That should be a local decision.
Some enterprise zones were nominated in the first wave, but my hon. Friend makes a case for the second wave. Let me say something on the timetable for that. He will know that formal bids are due by 30 June. We hope to announce the successful LEPs during the summer. He will know that it would be inappropriate for me to go any further and to anticipate the outcome of that process, but it is obvious, from what he said and from the support that he has had from colleagues on both sides of the House, just how much support his proposal attracts. That is encouraging.
My officials are already working closely with the Worcestershire LEP and Kidderminster representatives on plans for the area. One thing that we have been particularly impressed by is the strong sense of local partnership between elected members, including councillors, businesses and the voluntary sector. The bid is therefore a strong one, but we are expecting other strong bids from other areas of the country—this is a competitive process. Whatever happens, the enthusiasm and volition to encourage growth by doing things differently locally does not rest entirely on the bid. The LEP has many powers available to it—for example, to create a simplified planning zone, or to promote discounts in business rates for certain types of businesses in particular areas. It can go ahead with such initiatives even in anticipation of an enterprise zone, and take other opportunities whether or not its bid is successful.
My hon. Friend has put a very strong case firmly on the record, and he does not have too much longer to wait before he hears the result of his passionate advocacy in the House today.
Question put and agreed to.
(13 years, 9 months ago)
Commons ChamberDoes my right hon. Friend agree that it is now more important than ever that local councils maintain and strengthen their links to community and voluntary groups, because these very groups can lead to innovative ways of delivering very high quality public services?
They can indeed, and I am grateful to my hon. Friend. Reading council, for example, has taken the opportunity to increase funding to the voluntary sector, knowing that actually it helps it to change its services and make some of the savings it is required to make.