(3 months ago)
Commons ChamberThe science and technology framework sets out our commitment to expanding STEM—science, technology, engineering and maths—opportunities to the most diverse range of people possible. We have acted swiftly to identify and dismantle any barriers to entry. As a result, we have seen major improvements in recent years, although there is always more to do.
Today is National Numeracy Day. In my constituency, which is one of the poorest, all seven wards fall into the lowest numeracy ranking in the UK. What is the Minister doing to ensure that people in constituencies like mine are not locked out of jobs in STEM by a skills gap that does not recognise the disadvantages they face?
The hon. Lady raises a very important point on National Numeracy Day. While we must not be complacent, the Government have made outstanding progress on equality for all. I hope she will join me in congratulating teachers in her constituency, and up and down the country, on the fact that last year, under this Government, girls made up 52%—a majority—of all science entries at A-level.
The Institute of Cancer Research has made positive steps on diversifying representation in STEM through its apprenticeship scheme. Can the Minister say what, if any, lessons he is taking from that very positive initiative, in particular to increase representation in respect of ethnic diversity?
I congratulate the Institute of Cancer Research on that progress. I would be delighted to meet the institute and hear what development it is making, as would my hon. Friends. This Government have increased the number of apprenticeships. Unfortunately, under the Opposition’s proposals the number of apprenticeships would halve.
Inclusion and diversity in STEM will be greatly increased and helped by the £6 million that Sir James Dyson has recently given to Malmesbury Primary School in my constituency, as well as by the STEM college he has locally. He has made it plain that it is available to all and that he intends to make sure that everyone in the town of Malmesbury and the surrounding area benefits from it.
I commend my hon. Friend and Sir James Dyson for that initiative. It would be wonderful to see many more such initiatives across the whole country. My colleagues and I would be delighted to work with any philanthropists seeking to do something similar.
On National Numeracy Day, will my hon. Friend take the opportunity to praise the work of universities, such as the University of Birmingham, Imperial College London and Loughborough University, that go out of their way to attract women on to engineering courses?
We are enormously blessed in this country with the quality of our universities, so many of which, together with the firms that sponsor undergraduate and postgraduate research, are making magnificent efforts in the important area of diversity in STEM.
As the hon. Lady well knows, diversity, STEM education and skills are at the heart of the UK science and technology framework, and we will be publishing skills frameworks for each of its priority areas.
The Government could not be more committed to supporting our valued life sciences sector, which, in the financial year ending 2022, contributed well over £100 billion in turnover to the UK economy and employed more than 300,000 people.
As the Minister will know, there is a shortage of laboratory space and clinical trials in the UK, and companies such as Precision Health Technologies Accelerator in Birmingham, led by the excellent Professor Gino Martini, want to be part of the solution to the problem. What help can the Government give businesses of that kind so that we can increase the number of clinical trials to help the advancement of lifesaving medicines?
My hon. Friend is right: such is the growth of this important sector that we need more lab space quickly. I personally benefited from the advice of Professor Martini in the life sciences real estate working group. Precision Health Technologies Accelerator does some amazing work in my hon. Friend’s constituency to knock down barriers to building, many of which are sadly the fault of Labour councils.
Dementia and Alzheimer’s disease remain the largest cause of death in the United Kingdom. The Government pledged in 2019 to fund dementia research. What more is the Minister doing to ensure that we have early diagnosis, access to trials and support for life sciences to transform dementia outcomes?
Dementia is a crippling disease for so many people, and will touch so many people’s lives. The Health Secretary and I recently hosted the heads of the Dementia Mission at No. 10 Downing Street to announce more funding, and I should be happy to meet the hon. Member and any representatives of dementia organisations in his constituency.
The hon. Lady has made some important points. My officials and I have met representatives of the institute and have considered a number of options for it, of which they and, I believe, she will be aware.
The Government are providing record levels of taxpayer funding for research, and my right hon. Friend is right to highlight the opportunity to improve productivity. A priority for research councils is to focus on not just discovery but innovation, so that British taxpayers feel the benefits of faster economic growth, rising living standards and better health outcomes.
As I saw during a recent visit to Chase Farm Hospital, better digital systems can dramatically improve NHS productivity, and artificial intelligence can contribute to that as well. Will the Government use their science and research budget to increase NHS output, improve outcomes for patients and get waiting lists down?
That is exactly what we are doing. On Monday, the Prime Minister announced £15.5 million to roll out artificial intelligence radiotherapy that locates cancer cells two and a half times more quickly, helping to reduce those anxious days for patients and their families who are awaiting a diagnosis. That is affordable only thanks to the fact that our plan for the economy is working. Labour has no plan, and would end up having to cut the research budget.
The day when we are able to eliminate animal testing cannot come quickly enough, though we are not there yet. We are committed to supporting the strategy to replace, reduce and refine the use of animals in research, and since taking office I have doubled the investment in non-animal methods of research to £20 million this year.
The reduction and ultimate ending of the need to use animals for testing purposes is an important policy objective of my animal-loving constituents in Romford. Does the Minister agree that animals are not laboratory tools but sentient creatures, and that the policy of replacement, reduction and refinement must be at the core of Government policy going forward?
I know that this is an issue close to my hon. Friend’s heart. He is a great animal lover, and I recall his past work as shadow Minister for animal welfare. This summer we will publish a plan, together with colleagues in the Home Office, to accelerate the uptake of non-animal methods of research.
This Government have a plan to ensure that technology works for our people, not against them. Right now, the Secretary of State is in South Korea for the AI Seoul summit. She is building on the progress we have made and on the UK’s leadership at Bletchley Park last year to tackle the risks of artificial intelligence. Whether it is AI, quantum, life sciences or the next generation of advanced telecommunications, we are making the UK a science and tech superpower, backed by the highest ever level of spend on research and development. Our plan is working, and our scientists and entrepreneurs cannot afford to go back to square one with Labour.
The UK Research and Innovation chief executive has announced that they are stepping down in June next year. The recruitment process normally lasts eight months, yet the Government are speeding up that process. Is that because they are worried about the outcome of a general election?
This Government are focusing on delivery every single day, and I make no apologies for cracking on with the process of making sure that our brilliant research institutions have the finest leadership that the best and brightest in the world deserve.
Funding councils must be accountable for their own individual decisions. My hon. Friend no doubt reflects the concern of his constituents, who expect, in return for our record expenditure on research, the discovery of life-saving medicines, or groundbreaking technology; that is what they expect in return for hard-earned taxpayers’ money.
That is absolutely right. It is intrinsic to the scientific method that research is impartial, and that it is challenged, public, transparent and open. That is always our commitment, but it is also to fully fund research and to turn this country into the science and technology superpower that it deserves to be.
Before we begin Prime Minister’s questions, I am sure the whole House would like to join me in welcoming back our colleague and friend, the inspirational hon. Member for South Thanet (Craig Mackinlay).
Craig, it is so good to have you back among us. You are the man of the moment. I met your daughter, whose birthday is tomorrow. I say to you and your family that you are an inspiration to the people in this country who have suffered with sepsis. You have shown us the way forward. Thank you for everything—[Applause.] That is the only time I allow clapping.
May I also just mention that we have the Speaker of the Icelandic Parliament and the Premier of the Cayman Islands with us today?
(4 months, 1 week ago)
Commons ChamberIn2tec is indeed a great example of innovation in sustainable electronics. I am pleased that it has benefited from £250,000 in UK support. It would be my pleasure to visit my hon. Friend’s constituency in Kettering, and I believe we have a date soon.
The Government are absolutely committed to expanding STEM opportunities. A key way of doing that is building mathematical capabilities and helping girls and minorities to stick with maths, which is why the Prime Minister has announced our ambition to see all young people receive maths education until they are 18.
The Medical Research Council is benefiting from the highest ever level of research spending, but I would be happy to meet my hon. Friend to talk about what more we can do in this important area.
(6 months ago)
Commons ChamberOur priority is to ensure that everyone, regardless of background, can pursue the exciting opportunities in STEM. That ambition fully extends to the hon. Members’ constituents in Paisley and Renfrewshire North and in Livingston.
New data from Times Higher Education reveals that female science undergraduates are twice as likely to experience sexism as their peers on non-science courses. Many have reported being patronised or belittled by their male classmates, with this behaviour routinely going unchallenged by staff. What steps is the Minister taking to address the pervasive culture of sexism in STEM so that more women can be encouraged to pursue jobs in that important sector?
A key priority for this Government is ensuring that everybody, regardless of background, faces no discrimination and can pursue an occupation in STEM. I am pleased to report that the number of STEM apprenticeship starts by women this year is up by almost 8%, and since 2016 a total of almost £8 million has been awarded to 152 remarkable women role models to help them grow their businesses and innovation.
A vaccine firm in my Livingston constituency, Valneva, does lifesaving and pioneering work, and nearly 50% of its workforce are women. It does brilliant work to encourage women into STEM careers. Would the Minister consider coming to Livingston, visiting Valneva, and meeting the company and me to see at first hand the fantastic work it does?
Yes, and I commend the hon. Lady for having that very successful female-opportunity-giving firm in her constituency. I am in Scotland later this month and I will try to visit her.
There can be no better example of businesses encouraging STEM education right through school and university for both men and women than the James Dyson Foundation in Malmesbury in my constituency. Will the Minister join me in warmly thanking and congratulating Sir James Dyson on his recent contribution of £6 million to Malmesbury Primary School, which will also be available for all children in Malmesbury to promote STEM at the heart of my constituency?
I warmly congratulate the Dyson Foundation on that. It is a fantastic example of philanthropy. As my hon. Friend will know, maths education is a key building block, and we are consulting on establishing a national academy of mathematical science, backed by £6 million of funding. The consultation ends this Sunday and I hope that many hon. Members will respond.
Improving diversity in STEM is not just the right thing to do; it is vital to our future success. Diversity brings new ways of thinking, a better understanding and a new approach. Can the Minister ensure that the Department for Education encourages people to think about STEM careers at the earliest possible level, particularly in primary schools?
My hon. Friend makes an important point about diversity in STEM starting at the earliest possible age. I will of course talk to my colleagues in the Department for Education about doing precisely that.
A number of my constituents who work in STEM areas have expressed concerns about female research partners currently in Gaza. Can the Minister confirm whether any discussions have taken place with colleagues at the Home Office about providing emergency visas to female STEM academics who are currently working in collaboration with UK partners?
I am not aware of that, but I will happily ask the question of Home Office colleagues and write to the hon. Lady.
Delivering a national space strategy is a key priority for me and the Department. I recognise that a strong space workforce is critical to this, and my hon. Friend will be pleased to know that we will be publishing a space workforce action plan later this year.
I am grateful to my hon. Friend for his answer and for his work on this. He knows, as I do, that the innovation economy in this country is creating hundreds of thousands of new jobs. Indeed, 500,000 are forecast over the next 10 years in space, agritech, cleantech engineering and bio, in clusters all around the country, as the recent cluster map showed. Will he ensure that the excellent Department for Education future skills unit liaises closely with the Department for Science, Innovation and Technology cluster team to make sure that we are properly building the job creation plans into the local skills improvement plans on the ground?
My hon. Friend has done so much to advance the interests of skills in the sector during his many years of public service, and he is quite right to draw attention to the successful cluster map that was launched by the Secretary of State 10 days ago. The development of skills is a shared responsibility between Government and industry and we take our responsibilities in that respect very seriously.
I want to put on record my thanks to the hon. Member for Mid Norfolk (George Freeman) for having taken the Sutherland spaceport to where it is. It is now well under way. Does the Minister agree that the skills we have at Dounreay and at the nearby Thurso College could play a large part in making this a centre of excellence for space launch?
I do agree with the hon. Gentleman. This is a very exciting moment in UK space, and he has long championed the cause of his own constituents in that respect. I look forward to this year being a very successful year for him and the whole space supply chain, and inspiring a future generation locally.
The UK has an exceptional record of innovation in medical technology. There could not be a more exciting time for the sector; we are extending the length and quality of human life, and solving rare diseases, with the help of the Medical Research Council’s £650 million grant this year.
The north-east has a fantastic life sciences sector, with 7,000 people working in it and a unique combination of medical and technology assets, networks and academic expertise. However, with business investment at record lows, what are the Government doing to ensure that our brilliant research and development is transferred into real manufacturing jobs?
As the hon. Lady will know, the Government are investing in medical manufacturing. I would be happy to meet her or businesses in her constituency to make sure that they can access those funds. However, it is only the good stewardship of our economy that has allowed us to continue to invest record amounts in research and innovation in the UK.
(7 months, 2 weeks ago)
Commons ChamberThis Government have a fantastic track record of mobilising private investment in research and innovation, alongside delivering the largest ever public spending, which will reach £20 billion a year next financial year. In November, the global investment summit saw commitments to invest almost £30 billion in the UK, including the decision by Flagship Pioneering, one of the world’s leading life science investors, to have its first international base in the UK.
Hertford and Stortford lies at the heart of the innovation corridor, so private investment is very important to businesses in my constituency. Does the Minister have any assessment of the likely impact of the Mansion House reforms on that trend and the great track record of private investment?
Like its Member of Parliament, Hertford and Stortford is indeed innovative. The Mansion House reforms, which in my previous role I helped the Chancellor to deliver, will unlock an estimated £50 billion of investment to scale up high-growth companies across the whole United Kingdom, including in my hon. Friend’s constituency. That sits alongside our £250 million initiative for long-term investment for technology and science—LIFTS—which will focus particularly on British pensioners investing in long-term growth opportunities in tech and the life sciences. When it comes to British innovation, this Government are all in, and I hope that in 2024 financial institutions will be too.
In October, the Government announced the £60 million regional innovation fund to boost university support for regional economic growth. Wales was allocated £3.4 million through the Barnett formula. However, disappointingly, there is no evidence of that money having been spent on its intended purpose in Wales. What assistance can the Minister provide to encourage the Welsh Government to invest Wales’s proportion of the regional innovation fund in boosting the Welsh economy?
As my hon. Friend said, the recently announced regional innovation fund is providing £60 million of funding across the United Kingdom to harness the strength of our universities. It is intensely disappointing that the Labour Government in Wales have not seen fit to spend that in the same way. Ultimately, that is a decision for the Labour Government, and I am sure that the electorate will hold them to account for that.
Private investment will need to ratchet up significantly if it is to offset the loss to the research sector that we are seeing as international student applications plummet as a result of Government policy. What are the Minister and his colleagues doing to offset that decline in resources?
Once again, it is an enormous shame that the hon. Member for the wonderful cluster of Cambridgeshire is so keen to talk down the United Kingdom at every opportunity. This Government are mobilising more public funding for research and development than ever before, and mobilising private investment capital on the back of that—£2 for every £1 that the Government put in.
Yesterday I was talking to a Minister in the Lobby, and he referred to how impressed he was by the Northern Ireland workforce. I am equally impressed, as the Member for Strangford. When it comes to research and development across the United Kingdom, what is Northern Ireland getting to help our workforce grow, to train our people and to make us an integral part of this United Kingdom of Great Britain and Northern Ireland?
Having visited Northern Ireland, I am aware of just how innovative and highly skilled it is, and how much opportunity and headroom there is. It is very important to me, as the Minister for Science and Research, that Northern Ireland punches above its weight. I would be delighted to visit Northern Ireland to meet businesses, entrepreneurs and innovators there.
I hope that the hon. Members and their party will join me in celebrating just what a fantastic place the UK is for international researchers to work and live. We have one of the strongest science bases, the world’s leading universities and research institutions, and the largest ever public research and development budget. With our association with Horizon from the beginning of the year, we are central to global research collaboration.
This year, the Migration Advisory Committee will review the graduate immigration route. International research students who are currently doing PhDs in the UK are attracted to coming here because of the ability to stay on and work after completing their PhD. Will the Minister engage with the Home Office to confirm that research students who arrive in the UK this year will continue to be entitled to a period of post-study work?
In keeping the UK an open and welcoming place to do international research, in order to deliver the Prime Minister’s vision of being a science superpower, my colleagues and I regularly meet Home Office colleagues. The facts belie the hon. Gentleman’s question: 41% of postgraduate research in the UK today is being conducted by researchers who have come from overseas.
The Government’s recent spousal visa policy to increase the salary threshold is forcing academics and innovators to leave. I give the Minister the example of a British constituent of mine who is graduating from Oxford with a PhD, which is funded by UK Research and Innovation. His American wife, who is graduating from Bangor with a PhD, cannot live with him because the job he has been offered is paid well below the salary threshold. Why are the Government using taxpayers’ money to educate people to become highly qualified researchers if their immigration policy then forces them to leave?
A fair immigration policy is absolutely part of an open Britain. It is right that those who come here from overseas and live cheek by jowl with those who clean their labs, drive their local buses and empty their bins do their fair share in contributing to the UK economy.
Does my hon. Friend agree that one of the reasons—[Interruption.]
Does my hon. Friend agree that one of the great strengths of our rejoining Horizon and the other European programmes is that our expert researchers and top professors will lead research teams that attract researchers from across the world, including the EU? That is one way to retain researchers here.
My right hon. and learned Friend makes an apposite point. I would ask all Members of this House to go back to their constituencies and talk to local firms, innovators, clusters and universities to make sure the UK punches above its weight in the Horizon programme.
In my constituency, Phytome is a fantastic independent researcher of agro-pharmaceuticals. I invite the Minister to visit the firm one day. What more is he doing to ensure that we can attract the very best talent from around the world into life sciences, even in Cornwall.
I would be delighted to visit the innovative firm in my hon. Friend’s constituency. She will know about the global talent visa, which has seen a 76% rise in visas issued over the last year alone, welcoming the world’s best scientists to Britain’s science and technology superpower.
In advance of the Budget, what discussions has the Minister had with the Treasury regarding crucial funding for the development and uptake of human-specific technologies, as opposed to using 3 million animals for experimentation and research in the UK?
The day cannot come quickly enough when we are able to end the practice of animal testing. That day is not now, but this Government are committed to doing everything we can to bring forward and support the development of replacement technologies. The hon. Gentleman has my commitment that we will do that at the right pace.
Yes, I congratulate SaxaVord on achieving the necessary licences to pursue vertical launches from Scotland. I hope to see the success of that launch, as well as rocket boosters under the UK space programme in 2024.
(9 months, 2 weeks ago)
Commons ChamberI thank my predecessor, my hon. Friend the Member for Mid Norfolk (George Freeman), for the outstanding contribution he has made to British science and technology.
The Government are investing around £4.2 billion in net zero research and innovation over the current spending review period, including through UK Research and Innovation and other Government Departments.
I thank the Minister for that answer. I am incredibly proud of the leading role that Cranfield University in my constituency is playing, not just in pioneering research around net zero but in commercialisation of that technology. Can the Minister outline what further support we can offer companies such as Cranfield Aerospace Solutions in my constituency, to make sure we capture that economic benefit locally in the future?
I share the hon. Member’s pride in the wonderful work done by Cranfield University and Cranfield Aerospace Solutions. We are providing £1.6 billion of funding for the UK’s nine Catapults, including the High Value Manufacturing Catapult, some of which will go to the Cranfield Digital Aviation Research and Technology Centre. I hope to join the hon. Member in visiting that wonderful institution.
The Minister is new to his task, and a very wide portfolio it is. In the wall-to-wall briefings he is currently getting, will he particularly ask for briefings on British science in the Arctic and the Antarctic? We have 78 universities that are leading in that field—we are the fourth largest polar scientific research nation. We are a leader in that area, and the Minister needs to know all about it.
I know that my hon. Friend does fantastic work highlighting polar research through the all-party parliamentary group for the polar regions. I will be happy to champion that work, and to meet him regarding that important domain for science.
I welcome the Minister to his role. I hope he will share his predecessor’s enthusiasm for, and commitment to, science.
Climate change presents huge challenges and huge opportunities. Labour would champion university clusters and spin-outs as engines of sustainable regional growth, but right now great green job-creating businesses such as Low Carbon Materials, a Durham University spin-out, and Airex, an award-winning retrofit start-up, are bogged down by Tory red tape, with some new products subject to 11 different regulators. Will the Minister adopt Labour’s proposal for a regulatory innovation office to unblock the system, end damaging uncertainty and drive much-needed growth?
I thank the hon. Lady for her question, and look forward to working collaboratively with her. I absolutely share my predecessor’s determination to drive forward British science, including the all-important work on net zero.
Teesside is a wonderful net zero powerhouse, and I commend the green steel project. That is one reason why Teesside was chosen to pilot the Innovate UK programme of launchpads, each of which will receive up to £7.5 million.
I welcome the new Front-Bench team to their positions. Since November 2020, £1.1 billion of taxpayers’ money has been invested in the Rosalind Franklin Institute as a mega-lab to defend Britain against future pandemics. Can one of the new team explain why the mega-lab has been put up for sale?
The Government are investing record amounts in innovation and research in technology, including across the life sciences sector. I will happily meet the hon. Lady to discuss this matter in more detail.
The Government are committed to ensuring that the UK has talent that supports research and innovation and drives growth. That is why we are investing millions in the brightest researchers through scholarships, PhD placements and fellowships in technologies such as artificial intelligence and quantum.
Research and development tax credits have been remarkably successful in promoting investment by small and medium-sized enterprises. However, the Suffolk chamber of commerce has highlighted that the system has ground to a halt due to the sledgehammer approach of His Majesty’s Revenue and Customs to tackling fraud. Will my hon. Friend liaise with HMRC and the Treasury to ensure that a more pragmatic approach is adopted?
My hon. Friend is a champion of his constituency, and I am happy to speak to the Financial Secretary to the Treasury on that important matter on his behalf.
(2 years, 11 months ago)
Commons ChamberThe Five Eyes partnership is also of huge importance. We share intelligence on a very, very free basis with our Five Eyes friends, but cyber, AI and so on will now be progressed within the AUKUS context as well.
Will the Prime Minister accept the thanks of the House for deepening collaboration with some of our oldest allies and putting flesh on the bones of global Britain? In that vein, will he join me in welcoming to London Mohamed bin Zayed to not only deepen further links, but unleash economic benefits as well as tackling issues such as defence, climate change and regional instability?
Yes. I will indeed be seeing Mohamed bin Zayed very shortly—in fact, just after I leave the House today. I think I am right in saying—my right hon. Friend the Foreign Secretary will correct me—that our relationship with the Gulf States is our single fastest growing market.
(3 years, 4 months ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
The person who paid for the renovations in the Downing Street flat was Boris Johnson.
Does my right hon. Friend agree that this UK Government are almost painfully transparent by any yardstick, and that while sessions such as this may be an inevitable part of the disinfecting oxygen of publicity, it is a bit rich for the hon. Member for Glasgow Central (Alison Thewliss) to raise concerns when the SNP wants the UK to rejoin the EU, a body that has not had its audit signed off for decades?
My hon. Friend makes an important point. Governments of all stripes can always do better, but I think it is fair to say that, over generations and across parties, there has been a determined effort by our Prime Ministers to do everything they can to make sure that our democracy stays healthy. Of course, Prime Ministers in the past have made mistakes, but I think it is important that we recognise that, overall, we can have confidence in institutions like this House of Commons to hold them to account.
(3 years, 4 months ago)
Commons ChamberI think what the people of Scotland need is an Administration in Scotland who spend the taxpayers’ money in Scotland better and more wisely, because the results of the Scottish nationalist party are dismal. They are failing on education. They are failing on crime. They are failing on their taxation policies. No wonder all they can talk about is another irresponsible referendum and breaking up this country.
My hon. Friend draws attention to a very valuable and important point, which is that across the country, it is Conservative councils that keep council tax low, overwhelmingly, and deliver better services, such as recycling. He is absolutely right to laud the efforts of the Conservative-led council in West Sussex.
(3 years, 5 months ago)
Commons ChamberOver the course of the past year in countries not too dissimilar to our own, people have been asked to choose between protecting their livelihoods and protecting their lives. That has not been the case in our country, and for that we have my right hon. Friend the Chancellor to thank. He said, right at the very start of this pandemic, that he would do whatever it takes to protect jobs, to protect businesses and to protect public health, and he has delivered on every count, and this nation has rightly given him its gratitude.
Despite his success, the Chancellor will be in no mood for a victory lap. Comprehensive support, as he has said today, has come at unprecedented pressure on our public finances. To date, as we have heard, the Government have already spent more than £300 billion, every penny of that borrowed. While low interest rates have certainly helped, we cannot expect such a benign lending environment to last forever. With national debt already close to national output, as we have heard, just a 1% rise in gilts would mean an additional yearly cost in debt servicing of £25 billion by 2024. That is more than half of the annual defence budget. Indeed, we are already seeing rising pressure, especially because of rising global inflation expectations, so we cannot allow the inflation tiger to prowl unchecked.
The faster our economy can bounce back, the easier it will be to manage our debt in the future. Thankfully, I believe that our prospects for a sharp, strong recovery look very promising. Thanks to the Government support, the vast majority of businesses are ready for the shutters of the economy to be lifted. The Bank of England has shored up confidence with monetary easing. Households are sitting on some £100 billion of excess savings and, unlike in wartime recessions, there has been no physical destruction of capital. Above all, the Government are delivering on their vaccination programme—a programme that is the envy of Europe and that will lead this continent out of the lockdown. For these reasons, I am very optimistic about the recovery, and I think it will happen rapidly.
My right hon. Friend was of course part of the legacy that has put us in a strong position to make the support packages of my right hon. Friend the Chancellor. Does he agree with me that small businesses are the absolute lifeblood of our recovery, and that my right hon. Friend the Chancellor has brought forward, in the Help to Grow package today, two really insightful schemes that will support the nation’s smallest businesses?
I thank my hon. Friend for his comments, and I very much agree with that. I think there are actually more than two schemes, if we are honest. There are a number of schemes that will help businesses, not least the speed and the scale of the recovery that I have talked of. I especially welcome those measures, but also the super deduction and the support through grants for businesses.
In the medium term, we will put our country back on to a firmer financial footing by tackling some of the systemic issues that were around long before this pandemic hit, such as low productivity and regional inequality. That is why I also welcome the Chancellor’s emphasis on infrastructure investment. Not only will this provide an immediate increase in economic activity, but it will drive long-term productivity improvements and will make sure that growth is even better distributed across the entire United Kingdom.
However, I would urge the Chancellor not to take his eye off delivery. Successive Governments have had a poor history of delivering infrastructure projects on time and on budget. I therefore hope my right hon. Friend will consider complementing his very welcome changes to the Green Book and the new national infrastructure investment bank with a comprehensive cross-government delivery strategy.
While grants and support schemes have been consumed by our generation, they will be paid for by the next. That is why the Chancellor was absolutely right to level with the British people and to set out so candidly the pressure on the nation’s finances. While slamming the brakes on spending now would be self-defeating, the Government should be drawing up medium to long-term plans to manage debt. That is why I welcome many of the initiatives the Chancellor set out today, including his commitment to try to avoid borrowing for day-to-day spending. That commitment starts with new fiscal rules. The Chancellor should ensure that those rules are in place by year end, ideally alongside the next Budget and the comprehensive spending review. Having run four spending Departments and the Treasury, I am left in no doubt that a fiscal anchor is essential to control spending and to control debt.
Lastly, in the long term, putting the country back on a firm financial footing means that we need to build resilience against future disasters, as the Chancellor recognised in his Budget speech. Of course, not every disaster is a black swan and it would be foolish to prepare for crises we cannot foresee while we ignore those that we can. In terms of their potential impact on the future economy, few crises are more existential than climate change and declining biodiversity. That is why, as Chancellor, I set Professor Dasgupta very ambitious terms for his independent review on the economics of biodiversity. It makes clear that biodiversity is declining faster than at any other time in human history. If we continue to undermine the resilience of the natural world, we will introduce new sources of serious financial uncertainty, not least the increased spread of infectious diseases. While of course it will take time for the Treasury to digest Professor Dasgupta’s review, the Treasury should make a start on one of his most central recommendations: the need to recognise the value of the natural world in our national accounts. I urge the Chancellor to formally ask the UK Statistics Authority to review how that might be done. The Office for National Statistics is one of the most widely respected economic institutions in the world. If it can lead by example, it can make such a difference in trying to persuade other countries and financial institutions to do the same. We can lead on this, not least because of our chairmanship of the G7 and the COP26 conference this year.
This has been a long hard winter and we have all been hibernating for many months, but, as case rates fall and the vaccination programme continues at pace, the frost has begun to thaw and we are beginning to see the first signs of spring. The Government have been given a precious opportunity not just to resurrect our economy but to reinvigorate our entire country. I am in no doubt that the Chancellor will rise to the occasion with the energy that this moment requires and the sense of purpose that history demands. I am pleased to say that his Budget is the first step to doing just that.
The support that the Government have put in place to protect jobs and livelihoods during the pandemic has been exceptional. The challenge today was to put in place pro-growth, pro-innovation policies to support the economy in the short term and fix the public finances in the medium term. Today, our Chancellor rose to that challenge. He delivered a Budget that puts in place the foundations to build a dynamic, pro-growth, pro-enterprise economy for the future. That is something I am particularly focused on, having spent most of the previous three decades in UK business.
Small businesses in particular—the mitochondrial beating heart of our economy—are central to the recovery. They have borne the brunt of this pandemic, which is why restart grants of up to £18,000 for our retail, hospitality and leisure businesses are particularly welcome, as are the extensions to the business rate holiday and the temporary 5% VAT cut. Together, they constitute a real lifeline for business.
It is also crucial for global Britain that we create the conditions for high-growth, innovative companies to choose the UK as the place to set up shop. Visa reforms to attract high-skilled, talented migrants to come to these shores are particularly welcome, as is the new future fund breakthrough scheme to support innovation and technology businesses.
My right hon. Friend the Chancellor also delivered some candid truths about the need to begin fixing our public finances, which I believe the British people already instinctively understand. Deploying the impressive support during a pandemic was only possible as a result of past sound finances. Without action to rein it in, our debt pile will continue to rise, even after we have recovered from this crisis. Maintaining the quality public services that we all want requires sustainably strong public finances.
A surprise centrepiece of today’s Budget for business was the revolutionary super deduction to encourage companies to unleash their potential and to get on with investing and building the future. In effect, the Government are standing shoulder to shoulder with risk takers, founders, entrepreneurs and investors. When companies invest in capital, they will be able to reduce their tax bill by an incredible 130% of the cost of investment.
As we emerge from this pandemic, we need to build a United Kingdom that is fit for the future. This Budget takes an important step on that path by balancing growth, investment and enterprise with a clear, honest plan to fix our public finances. By doing so, those on the Government Benches will deliver on the promises we made to the British people.
(3 years, 6 months ago)
Commons ChamberI have a deal of respect for the hon. Gentleman as he and I have clashed many times over issues in London, but I think he uncommonly showed a failure to follow what I already said in my answer to the right hon. and learned Member for Holborn and St Pancras (Keir Starmer): the CMO and the CSA both approve of reopening in full.
More than anything, the nation’s businesses need certainty in order to plan. Today’s road map provides that certainty, and the reopening of schools is a welcome and critical element of it. Does the Prime Minister agree that it is important that, like navigating lock gates on a canal, we now proceed sequentially, as fast as possible, but always in a forward direction?
As anybody who has steered a narrowboat or barge on a canal will know, the important thing is not to oversteer and then be forced to correct and bump the sides of the canal. That is what we are trying to avoid, which is why we are embarking on a cautious but irreversible approach.