Wednesday 11th June 2014

(10 years, 5 months ago)

Commons Chamber
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Angela Watkinson Portrait Dame Angela Watkinson (Hornchurch and Upminster) (Con)
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I welcome the opportunity to make a brief contribution to this debate on the Gracious Speech. I shall concentrate my remarks on small businesses, growth and jobs, but first I shall comment briefly on the inclusion in the Serious Crime Bill of the recognition of the emotional and psychological neglect of children as an offence.

The wilful withholding of emotional warmth and support is damaging to psychological well-being and to mental health, and can lead to negative long-term outcomes for young people, an absence of self-worth, risky behaviour, poor academic achievement and offending. I hope that during the Bill’s passage consideration might be given to extending legislative protection to children up to the age of 18 who have experienced emotional deprivation in this type of upbringing, have never received approval, praise or encouragement, and would find sustaining independent adult life without succumbing to its many pitfalls extremely challenging.

I welcome the measures in the small business, enterprise and employment Bill, which will build on the fall in unemployment both nationally and in Hornchurch and Upminster. Since 2001, my constituency had been stuck with an unemployment rate of about 3.5%, but this year the claimant rate has dropped to 2.8%. That is not just a statistic; it means that many individuals who have been released from benefit dependency have gained not just an earned income but self-esteem and the satisfaction of independence. This Government’s welfare reforms have all contributed to the fall in unemployment, especially for people who have been out of work long term. The £2,000 off employers’ national insurance bills, the doubling of small business rate relief until April 2015, the increased number of apprenticeships and the new private sector jobs, particularly in retail and construction—up 9% and 19% respectively in Hornchurch and Upminster—have all contributed to the fall in unemployment.

I pay tribute to the schools and colleges in my constituency, and to the value they place on fiscal education, the preparation they give for adult life in their citizenship classes, and the development of life skills, which inspire ambition and aspiration in their pupils to achieve their maximum potential through further education, apprenticeship or employment. That is particularly important for pupils who come from workless households, where these examples of opportunities for a successful future may not be considered. Those pupils need to know that the professions, public service and starting up a business are all open to them, and are not just for other people.

Ford, as a large employer in a neighbouring constituency, is also playing an important role by supporting the women in engineering compact, which was launched on 7 May. Ford has traditionally provided jobs for my constituents and is now influencing the future career paths of female students by demonstrating the attractiveness of technical careers to women by visiting schools and colleges to talk about the opportunities in STEM—science, technology, engineering and maths—careers.

Small businesses are the foundation of the local economy in my constituency. The majority—86%—have an annual turnover of less than £250,000; 10% have a turnover of between £250,000 and £l million; and only 4% have a turnover of between £1 million and £5 million. These figures represent an increase of 11% in the first quarter of 2014 over the same quarter in 2013, which explains the increase in local job availability. Many people commute daily to London to work using c2c or the District line, but the many local small businesses provide jobs for local people who prefer to work locally. I know they will welcome the establishment of a deregulation target and the introduction of a new appeals champion to protect business against the impact of costly and burdensome regulation. They will also welcome the new measures to tackle late payment by larger firms, which causes serious cash flow problems in a small business. In addition, the streamlining of access to the public procurement market for small businesses will widen opportunities for the growth that enables those businesses to create more jobs and help unemployed people back into work.

The London chamber of commerce and industry has welcomed this Bill but has raised concern about inadequate skills availability, reporting that 45% of London businesses had difficulty recruiting suitably qualified staff to fill vacancies, and that despite stubbornly high youth unemployment there remains a significant skills gap in a number of sectors. Employers recognise that younger people can be a great asset to their business, but developing their skills can be a costly investment. There is an opportunity for closer collaboration between colleges, training and apprenticeship providers, employers and government to pool their knowledge and experience to ensure that young people are acquiring the right skills to make them employable. Both the London chamber of commerce and industry and the Federation of Small Businesses welcome this Bill, and so do I—I wish it a speedy passage through Parliament.