Autumn Statement (Coventry)

Bob Ainsworth Excerpts

Tuesday 7th January 2014 Westminster Hall

[Mr Jim Cunningham (Coventry South) (Lab)]

This is one of the few times I have had the honour of serving under your chairmanship, Mr Crausby. I will start by looking at the background to why I asked for this debate.

The Chancellor said he would eliminate the deficit by 2015, but we heard yesterday that he is going to have to make a further £25 billion of cuts. At the same time, the Government have presided over a cost of living crisis that is affecting ordinary families right across Coventry. Families are on average £1,600 a year worse off. The purchasing power of their wages is down by 5%. Energy prices have rocketed, adding £300 a year to the average family bill. Train fares have increased by up to 6% and bus fares have increased by 2.5%.

Food prices have also increased. The bedroom tax has penalised many in the social housing sector, while rents in the private sector are at an all time high. The benefit cap is also making life difficult for children in Coventry, in particular those in care—the Government are making things harder for around 287 children who have already had a tough start in life.

All that has culminated in large numbers of people relying on food banks across the city, with 67 families receiving food vouchers from the Coventry citizens advice bureau in November alone. Nationally, Citizens Advice expects to allocate over 100,000 vouchers this year.

Cuts could mean that pensioner benefits, such as the winter fuel allowance, could be cut back. As a result of spending cuts, other pensioner benefits are also at risk. Centro, the west midlands transport agency, has to cut £14 million from its budget over the next two years, which will mean reducing pensioner benefits to the statutory minimum.

Benefits for the disabled are also at risk in the transport budget, with Centro having to consult on removing up to a third of ring-and-ride services. Many of my constituents are also facing long delays in receiving their benefits and problems with Atos, which seems to be forcing ill and vulnerable people off benefits and back to work.

Since the Government came to power, the cost of child care has gone up by 30% while wages have been cut by 5%. Moving on to the situation regarding women, tax adjustments made last year raised £14 billion, of which women contributed £11 billion. Given the £11 billion in tax that was inflicted on women and the cost of child care, women are hardest hit by this Government. More women than ever before are on low wages. More women than ever before cannot get a job. More women than ever before are bearing the brunt of cost of living increases.

I turn to the settlement for Coventry. Core funding has been cut by £45 million since 2010. Coventry will face a further £19 million funding cut in 2014-15, which is a 10.6% cut. In 2015-16, the provisional settlement indicates that Coventry will face a 15.2% cut. Government figures regarding Coventry’s spending power do not make sense as they ignore inflation and include funding from council tax and new burdens placed on the council. The council tax base is being eroded; council tax has not increased as a result of the freeze grant, which is storing up problems for the future.

I turn to the impact on children’s services and education. There will be a significant impact on youth services and social care services to support education and the well-being of children, and schools’ basic need grant has been reduced to zero. That may be a mistake by the Government that needs clarifying urgently, because it puts in jeopardy plans to expand our local schools. If what I have said is correct, plans to expand primary schools to meet the demographic changes will have to be cancelled.

[Mr Bob Ainsworth (Coventry North East) (Lab)]

In our casework and surgeries, we are all seeing the effects of what my hon. Friend is outlining. If we couple that huge increase in need, which is apparent to Members of Parliament and is impacting on the services provided by the local authority, with the deep cuts that have taken place and will continue to take place, is there not a substantial magnifying effect of the gap between needs and the ability to provide for those needs?

[Mr Cunningham]

I totally agree with my right hon. Friend. I come back to something that Nicholas Ridley said many years ago—about 25 years ago. He foresaw a time when local councillors would meet once a year and give contracts out to the private sector. If we look at the strategy of this Government and of previous Conservative Governments, we see that they have slowly but surely taken powers away from local authorities. They do so in a number of ways, in particular by slowly but surely cutting budgets and forcing services out to the private sector, and yet the private sector does not always know best.

Also, we have a big issue regarding pensioners, in particular caring for them, that started under the previous Conservative Government and the matter has never been resolved, as far as I can remember. We are still debating changes that should have happened 25 years ago. Instead, 25 years ago local authorities were forced to hand over—or sell, if people want to put it that way—old people’s homes to the private sector. Five or seven years down the road, however, after the private sector had made a profit, the homes closed down. That, too, created a shortage of beds, but more importantly it forced the prices up for care for elderly people.

The whole strategy can be seen. I have always said that this Government think in generations: what the previous Conservative Government leave off, the next Conservative Government pick up. At the end of the day, in local government we will have only one or two little services, while the rest is in the private sector. Mr Ridley’s prophecy is becoming true.

I move on to the impact. Support for Age UK and other local charities will reduce by 22%; there are significant reductions to housing-related support; the housing-with-care scheme in Coventry at Jack Ball house and George Rowley house has ceased; a range of day centres and the in-house, short-term home support service have closed; and charities will no longer get the business rate support that they once had, even though that is meant to be something to do with the Prime Minister’s big society.

If we cut the public sector—the social sector, in particular—we can hand things over to the private sector, or the voluntary sector, but if we hand it over to the voluntary sector, the Government inflict cuts on the voluntary sector. It is an endless cycle of viciousness. If the Government want to get some credibility in local government—even Conservative councils are concerned about what the Government are doing—they need to get a grip and have a good look at what they are doing.

Finally, there is the impact on benefits, such as the local welfare provision grant, which will also end this month—£1.4 million for Coventry, providing emergency funding to those in direct need.

Trident Alternatives Review

Bob Ainsworth Excerpts

Wednesday 17th July 2013 Commons Chamber

[Danny Alexander]

That is of course a legitimate point for political debate, but the purpose of the review was to consider alternative nuclear weapon systems that could act as a deterrent. The review was never designed to consider the option of unilateral disarmament, although the hon. Lady is free to argue for that.

[Mr Bob Ainsworth (Coventry North East) (Lab)]

rose—

[Danny Alexander]

I give way to the former Secretary of State.

[Mr Ainsworth]

If this was the most comprehensive examination of our nuclear weapons system in a generation, why did the right hon. Gentleman not take evidence from individuals outside government?

[Danny Alexander]

It was a review conducted within government, taking advice from senior officials, as with every other government review. Indeed, the right hon. Gentleman has been involved in such reviews in the past, and I am sure he knows better.

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[Mr Jones]

That is exactly the case, and I think that the Defence Secretary has said the same thing. It will be achieved not by sticking a finger in the air and thinking of a policy, but by thinking about what we need to keep our nuclear deterrent credible and by maintaining the important continuous-at-sea deterrent.

As has been said, we are convinced that the only credible way forward for a minimum nuclear deterrent is a continuous-at-sea deterrent; otherwise, the UK would be vulnerable. The Chief Secretary’s suggestion would not only make the UK more vulnerable, but lead to a situation where we would not possess first strike or even second-strike capabilities. It would also be a significant escalatory factor if the UK stepped up its armed CASD posture. It is simply not credible and it is also very dangerous.

There are options that the alternatives review did not consider, so why are the Liberal Democrats set on the proposals outlined by the Chief Secretary? I think it is the old Liberal Democrat trick—many of us who have dealt with them in local government have seen this over many years—of trying to ride both horses at the same time. They want to appease the party’s unilateralist wing and persuade them that they are scaling down the nuclear ladder, while simultaneously claiming to the electorate that they have a credible nuclear policy, but they have been found out by the alternatives review.

The Liberal Democrats have commissioned a review in Government time, using taxpayers’ money and resources, in order to supplement their own party’s policy manifesto for 2015. I tabled a written question to the Chief Secretary yesterday asking how much the review cost, and I await his response. The Lib Dem plans have been found wanting and they are now scrambling around frantically for a bizarre policy solution in order to advance their much-heralded differentiation strategy, through which they are trying to place themselves between the Labour party and their coalition partners.

We have all waited for the publication of this report and I think we all genuinely thought it would suggest a credible alternative. Our position is clear: we are committed to the minimum, credible independent nuclear deterrent, which is why we put that policy to the House in 2006. I completely disagree with the Chief Secretary’s comment that this is the most thorough review undertaken. That is complete nonsense, because that review was done in 2006. He should also look at the three comprehensive reports commissioned by the Defence Committee, which covered all the issues.

[Mr Ainsworth]

We consulted on it.

[Mr Jones]

As my right hon. Friend reminds me, we also consulted on the issue and did not conduct our review behind closed doors, as was the case with this one.

We also believe that the best way to deliver the nuclear deterrent is through a continuous-at-sea deterrent. The review does not appear to suggest anything to the contrary. In fact, it reinforces our point.

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[Mr Bob Ainsworth (Coventry North East) (Lab)]

The political class in this country and others struggles to communicate and maintain credibility with the electorate. It is not always our fault, but sometimes we are to blame, and when we commission such a report and present it in this manner, we do serious damage to our credibility when talking to our electorate. In my opinion, the report was born of unworthy motives and conducted without any outside consultation, and to present it with the kind of hyperbole we have heard tonight—as the most comprehensive examination of our nuclear deterrent in a generation—is clear and utter nonsense. The report picks apart nothing in the 2006 White Paper; indeed, despite the best efforts of the right hon. and learned Member for North East Fife (Sir Menzies Campbell) at the last general election, it confirms the basic underpinning of the report and denies the credibility of what was said at the last general election: that we can have a cheap nuclear deterrent.

Of course, there is the question of whether we should have a nuclear deterrent at all. It is raised in all our constituencies all the time and is a perfectly reasonable question. Some Members believe and say openly that we should not have one, while others, I think, believe the same, but do not say so openly. The first question, then, is whether we should have one at all, but the report was not commissioned to examine that question; it was commissioned to examine the second question, which inevitably flows from the first: if we decide to have a nuclear deterrent, what kind should it be? What is the best system? What is affordable, effective and a real deterrent? That is where the report falls down.

There is no such thing as a non-credible or a less-credible deterrent. There can be no such thing as a part-time deterrent. To be a deterrent, something has to deter. Doing anything less than deter stops a nuclear deterrent being a deterrent at all. It turns it into what? Potentially, at times of crisis, it turns into an invitation; it most certainly turns it from a deterrent into a weapon. If we look at what underpins the White Paper— and as the previous speaker clearly stated—we have seen that such a weapon would be dangerous to deploy. How, when and in what circumstances would it be put to sea? How would we disguise, at a time of rising tension, that we were doing that? It would be dangerous to deploy and difficult to sustain. It is all right to say that if we have three boats, we could, for a time in some circumstances, up our level of deterrent and go back to continuous-at-sea deterrence. Yes, we could do that for a while if we got ahead of the crisis, stepped back to CASD, deployed a boat at sea and kept it at sea throughout that time. But with three boats, for how long could we do that?

The Government and the Labour party accept—indeed, it would be nonsense not to accept it—that technology may change the need for a fourth boat. If it does, why on earth would we do anything other than have three boats? However, if technology does not change those basic parameters, we will lose our ability to deter for a considerable time. This is not something we can just rescale in a matter of months; it would take years to rescale and we would therefore be rendering our deterrent non-sustainable.

This report does not ask an honest question and I do not believe it was an honest process, but the review has at least flushed out the issue of whether Trident can be done on the cheap. I would not want to have an examination in a cheap operating theatre by a doctor who had been trained on the cheap, and I would not want a deterrent that was done on the cheap. If we are to have a deterrent, let us have a deterrent that deters, as that is the only one worth having.

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[Sir Nick Harvey]

I can agree to the extent that we must ensure that we build enough capability that we can mount the deterrent we will need at the point that we need it. What that will comprise is a matter for further debate and further study and I note with interest that even those on the Labour Front Bench and the former Defence Secretary, the right hon. Member for Coventry North East (Mr Ainsworth), acknowledge that it remains to be seen whether we need four or three to do that.

[Mr Ainsworth]

Just let me see whether I understand the hon. Gentleman’s position: is he saying that we should build enough submarines to be able to go back to continuous-at-sea deterrence and to maintain it at any point at which the threat increases?

[Sir Nick Harvey]

I am certainly saying that I think we should have the ability to go back to continuous-at-sea deterrence when we think we need it. I do not know that I would go so far as to say we should be capable of sustaining it indefinitely—I think that is unnecessary in scale—but I do think we should be capable of sustaining it for periods of time when there are heightened tensions. The problem we face is that we run the risk of having a Rolls-Royce nuclear deterrent at the expense of having an Austin Mini as the remainder of our defence capability. During the very decade when expenditure on the Trident replacement will be at its height, there will be a long list of other high-profile, highly important defence projects competing for what we all know will be very limited defence resources.

There are some obvious examples. We are going to put the joint strike fighter on to our two aircraft carriers, and we do not have the slightest idea at this stage what the unit cost of them will be on a through-life basis. We are going to build the Type 26 frigate. We have got to do something about the Army’s equipment programme given that the future rapid effect system programme is now in tatters as a result of the last few rounds of cuts we have had to make. We are going to need another generation of remotely piloted aircraft. We are going to need more amphibious shipping when HMS Ocean goes out of service in 2018. We need more helicopters. We need more ISTAR assets, and we need to deal with the cyber-threat, which the national security strategy said was one of the primary threats and in which we are investing modestly but nowhere near enough.

If anybody thinks that the resources committed to defence, or that can be anticipated as being available to defence, are enough to pay for all of those on the scale everybody in Government, and probably in the Opposition as well, would want to see and think is necessary in terms of our own strategic defence and security review, something is going to have to give. We cannot afford to do all that and have a nuclear deterrent scaled to deal with the menace of the cold war 25 years after the Berlin wall has come down and 19 years after we and the Russians de-targeted each other.

It simply is not the case that in order to get a deterrent effect from our military capability we have to patrol it all the time. That is absolute nonsense. The British, the French and the Americans have a posture of continuous-at-sea deterrence; the Russians and Chinese do not. The Indians and the Pakistanis take each other’s nuclear weapons perfectly seriously, but that does not mean they patrol with them the whole time. It is complete nonsense to say we have to do it on that basis.

I hope the report published yesterday will inform a national debate about this before a decision is taken in 2016, and when that is done the next generation of the nuclear deterrent will have to compete for funds alongside all the other platforms I have described, which are far more relevant to the threats we actually face.

Public Spending (Coventry)

Bob Ainsworth Excerpts

Tuesday 12th July 2011 Westminster Hall

[Mr Geoffrey Robinson (Coventry North West) (Lab)]

I am grateful to you, Mrs Riordan, for chairing the debate and to Mr Speaker and his office for agreeing to it. It is a very important debate, in the course of which I may be joined by two other MPs. I think that both were meant to have approached the Chair to say that if time permits—I hope it does—they would like to say a few words. We will of course leave adequate time for the Minister to reply.

The occasion of the debate arises from some work done two or three months ago, shortly after the Budget came out, by my right hon. Friend the Member for Normanton, Pontefract and Castleford (Yvette Cooper). She sought to show that the Budget measures, far from being progressive, as the Government had tried to imply, and far from being gender-neutral, were in fact very regressive and would impact much more severely on women than on men. The work she did initially in pursuing those points to great effect against the Government was then taken up and taken further in some excellent research work undertaken at Warwick university by two senior researchers there, Mary-Ann Stephenson and James Harrison. I am sure their work will increasingly be seen as a landmark in taking forward the points that were made by my right hon. Friend shortly after the Budget came out.

Coventry was a very suitable place to use as a test case for examination of the impact of the Budget measures on women, because in Coventry the pay gap between men and women—between the genders—is already 10 points higher than the national average. Also, as we all know, the bulk of the cuts in the immediate future must come in the public sector, and in Coventry no fewer than 78% of the city council staff are women. We can therefore measure in a very significant way, across a major part of the economy in the west midlands—the local and the regional economy—what the effect of the cuts will be. I would like to deal with each point in turn, quantifying things in so far as that is possible. We can then look forward to hearing exactly what the Minister has to say in response. But if we take the cuts as a whole, it is obvious, given that 78% of the city council staff are women, that the impact will be worst on them; they will feel it most. That is a simple fact. The cuts will disproportionately fall on women.

The child care tax credit is being cut from 80% to 70% of child care costs. Obviously, women will also suffer disproportionately as a result of that. Together with increased child care costs, that might lead to lower rates of employment for women and further increase the pay gap. That has not been quantified yet, but work is continuing. Such is the interest in the issue at the national level that when a colleague and I co-hosted a meeting to discuss it, the Members who joined us in the Committee Room came not only from the west midlands, but from all parties right across the spectrum. The room was full to capacity, and there was standing room only; it is not often that that happens in a public meeting in a Committee Room.

The second issue is housing. Single women are the main recipients of housing benefits; again, that is pretty obvious. In Coventry, about 4,360 single women and 2,085 women in couples claim local housing allowance for private rented accommodation. LHA coverage has been cut and now applies only to the bottom 30%, rather than the bottom 50% of households. It will also be linked to the consumer prices index, rather than to local rents, which will almost certainly mean—this is why the Government have also chosen CPI for their pensions calculations—that its value will go down over time. Again, women make up by far the greatest proportion of those who take up this benefit, so they will, yet again, suffer disproportionately.

This time, we can put a figure on the cost, and perhaps the Minister can confirm or contradict my figures in her reply. In the short term, the changes will cost those who are affected in Coventry between £8 and £15 a week. If that is not right, perhaps the Minister will correct me. Again, however, those are hidden effects, and they are not spelled out in any of the Government’s background notes to the Budget or anywhere else in their calculations. Those hidden effects, which the Government have tried to cover up, are impacting directly on women in Coventry and, therefore, on their families.

On incomes and poverty, it is pretty obvious that women are poorer than men—that is a statement of fact. As I have discussed, they also get a higher percentage of their income from benefits. For example, 33,595 households in Coventry receive tax credits, and 35,000 receive out-of-work benefits. The proposed changes will, once again, impact on women. The changes include cuts to benefits to pregnant women and families with new babies, the freezing of child benefit, cuts to child care tax credits and cuts to the numbers who are eligible for tax credits. Lone parents will be required to seek work once their eldest child is just five. Those changes will have big impacts, and I will quantify them in a moment.

Disability living allowance is being cut by 20%. Someone claiming for a person who loses DLA will also lose carer’s allowance. It is a pretty heartless Government who attack the most vulnerable in our society in that way. It almost seems that the Government have zeroed in on women to prove the point made by my right hon. Friend the Member for Normanton, Pontefract and Castleford.

The benefit and tax changes in the 2010 Budget will cost women in Coventry £29 million, which is an awful lot of money. On a broad calculation, that is more than £180 per woman per year, so the Budget will have a significant impact. However, the impact on the budget of the average family and the average woman was set out nowhere in the Government’s figures. The cost to men will be half the cost to women. Again, I would be happy for the Minister to try to challenge my figures—if she can.

On education, many women have to balance a job with looking after the kids and getting them to school. Like most authorities—I do not think Coventry has been unduly affected in this respect—Coventry has had its schools grant cut. The 24% cut to the schools budget has resulted in a cut to special needs and mental health support in schools—that is where the impact will be most heavily felt. In no sense is that to be taken as a criticism of the council. Indeed, I am pleased to say that in certain parts of the report, the authors go out of their way to say just how responsibly the council is trying to carry through the cuts. The council appreciates that the cuts have to be made and is trying to make them in the least regressive way it can to protect children, women and other vulnerable sectors of society. It is not picking out those with special needs, and nor is it in any sense exaggerating the cuts that have to be made; it is simply making the cuts that are necessary to stay within the law.

In passing, I have heard it said—I hope the Minister can discount this at once, and she probably can—that the Government could be in breach of Equality Act 2006 and, on an individual basis, the European convention on human rights, given the effects of so much of the 2010 Budget. I am not clear whether test cases are being brought, although I did try to find out. However, it would be interesting to learn from the Minister whether any are being brought and if so, how far they have got, because some of the Government’s measures are clearly so discriminatory—as well as being at least questionable under the terms of the 2006 Act—that they could be subject to judicial review, as I hope they will be.

On violence against women, the report produced a figure that shocked everybody—from my researchers to the report’s researchers. Let me give the numbers, shocking though they are. Some 30,397 women in Coventry are likely to have been raped or sexually abused at some point in their lifetime. If we remember that there are 310,000 people in the whole of Coventry, and we divide that by half or slightly more to reflect the percentage of women in the total population, it is clear that that statistic for the likely number of women who will face some form of sexual abuse at some point in their lifetime is frightening and really rather offensive. Some 38,537 women are likely to experience some level domestic violence in their lifetime. Again, I do not think the researchers wanted to attach any undue importance to the exactitude of their estimates, but the broad measure is shocking.

The provision that was made to deal with that situation was already inadequate, although heaven knows we pushed for a higher level of support from the council and the Labour Government—I am not pretending that the Labour party did a marvellous job. There are eight specialist domestic abuse officers to deal with the situation I have described.

[Mr Bob Ainsworth (Coventry North East) (Lab)]

I have been waiting for my hon. Friend to get on to the section of the report that deals with violence against women, because it really is most disturbing. Organisations such as the Coventry rape and sexual abuse centre are worried about funding, although the council has agreed to give it part-time funding, which is not secure. However, it is not just a matter of the sharp end of abuse against women. If women become more dependent on men as a result of the cuts, some will be inclined to stay in homes where they are potentially vulnerable and where they may be abused. That is clearly brought out in the relevant section of this first-class piece of work.

[Mr Robinson]

I am grateful to my right hon. Friend, who is spot on. The cuts to housing benefit will make it harder for women to move from the area to get away from their attacker. That is precisely the point made in the report, and my right hon. Friend rightly emphasised it recently in the press in Coventry.

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[Mr Bob Ainsworth (Coventry North East) (Lab)]

I shall keep my comments brief because the speech made by my hon. Friend the Member for Coventry North West (Mr Robinson) was very thorough and comprehensive. I want to make only one point in addition to his, and that is about funding for the Coventry rape and sexual abuse centre.

It is well known that the conviction rates for rape in this country are abysmally low. However, it has been proved beyond doubt that when an area has an appropriate service that provides support from the start, the propensity for victims to go through with an allegation, and for the conviction rate to rise considerably, is massive. We are well served by the centre in Coventry, but its funding is in crisis. It is constantly dependent on temporary funding. Despite the massive cuts that are being imposed on the council, it has agreed, for a time, to maintain some of centre’s funding on a temporary basis. However, we are really struggling to continue to provide such a vital service. Were we to lose it, the impact on women in the city would be huge.

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[Justine Greening]

We were careful in the spending review not only to consider its impact on women, but to understand its impact across the deciles. The hon. Gentleman asserts that the spending review and the Budget were regressive. However, research shows that it is the very richest people in our country who are bearing the brunt—they bear the biggest load—of tackling the deficit.

We have tried to ensure that we provide support for women through tax measures and several of our public spending measures. The hon. Gentleman spoke about the difficult decisions that Coventry city council is having to make. He has doubtless raised the matter with local councillors and the council leader, and discussed especially whether the deficit reduction piece that has fallen on Coventry is being carried out locally in the right way to deal with the local people’s priorities.

I take seriously what the hon. Gentleman said about particular issues, such as rape and support for women. As a local constituency MP, I have taken a particular interest in ensuring that refuge and support are in place for women. Many of these women who need such support are not from my community, but come to it because they must get away from difficult situations. The hon. Gentleman was absolutely right to raise the matter.

The Government have allowed councils more freedom in how they spend their money. A lot of ring-fencing has been removed precisely to enable councils to take more locally focused decisions in these difficult times about where money goes.

The hon. Gentleman also spoke about voluntary organisations. I assure him that we are committed to supporting them—not because of the difficult spending review settlement and the difficult situation with public finances in which we find ourselves, but because it is the right thing to do. One of the less publicised parts of this year’s Budget was the big package on philanthropy and there was also a package in support of gift aid. We need to consider what can be done to help voluntary organisations. We also changed AMAPs—approved mileage allowance payments—to help voluntary organisations in terms of volunteers and passengers.

We have taken further equally important steps. For the first time, we published an overview of the impact of the spending review on groups protected by equalities legislation, including women. The increase in personal allowance will help 880,000 of the lowest-paid workers—they will stop paying tax altogether—and we know that the majority of those at the bottom end of the low-income scale are women. We are also pushing the personal allowance higher. One thing that we have in the back of our minds is the fact that many of those workers were hit by the withdrawal of the 10p tax rate. In a sense, my challenge to the hon. Gentleman is whether he was making such points when the Labour Government were withdrawing that rate, as that change affected a number of women.

We have also tried to support families. The hon. Gentleman mentioned the House of Commons Library research, and if I have time—no, I shall make time—I shall say why we do not agree with its analysis, although it clearly made an important contribution to the debate. We increased child tax credits because we were particularly concerned to ensure that we did not go backwards on child poverty, even in these challenging times. As he pointed out, the change will be important for the many women in single-family households.

As for pensioners, we have re-established the earnings link and put back the triple guarantee. We know that women are far more likely to rely on a state pension than men, and of course they are also likely to live longer, so that will help them, too. Those are the sorts of things that were missed in the research carried out by the right hon. Member for Normanton, Pontefract and Castleford (Yvette Cooper).

[Mr Ainsworth]

The Minister talks about the impact on women of the pension changes, but does she not feel that the speeding up of the equalisation will be disproportionately onerous on those women in their mid to late 50s who will have no chance of making up for the now increased burden of providing for their own pensions? Put simply, they do not have the time to improve their pension pots.

[Justine Greening]

I recognise the debate that is taking place about that, but I also recognise that we have to be fair to everybody, and that means ensuring not only that our state pension system is fair to women today, particularly those nearing pensionable age, but that it will be fair to women of my age and to younger generations. They deserve to know that they can rely on state pension into which they pay through national insurance and any occupational pension that they might set up. For the women of the future who are now in our primary schools, the huge problem of our deficit and the public debt needs to be sorted out so that it does not fall on their shoulders later.

I now turn to the important point of what the hon. Member for Coventry North West said about the Library analysis. As a Government, we disagree particularly with its assumptions about where benefits go and who actually benefits from them, which were understandable but not necessarily accurate. For example, the research made the broad assumption that only the person who received a welfare payment would benefit from it. The hon. Gentleman mentioned housing benefit, but that is meant to help the whole household, not just the person who receives it.

On child benefit, the research apparently showed that the spending review and the Budget hit women particularly hard. Child benefit and child tax credit—the latter went up this year and will increase again next year—are designed principally to help the child, and the child can be of either gender, so it is not particularly accurate to say that our approach would necessarily hit women.

I recognise the hon. Gentleman’s statistic on the proportion of lone parents who are women. However, the analysis missed out the fact that in some of the areas that we have protected, such as health, women particularly benefit. We are taking steps to improve the amount of breast screening for cancer. At the moment, the breast screening programme offers screening every three years for all women in England aged 50 and over. Women aged between 50 and 70 are invited for screening routinely, while women over the age of 70 can request free three-year screening, but we are extending that programme to include women aged 47 to 49.

Budget (Coventry)

Bob Ainsworth Excerpts

Tuesday 3rd May 2011 Westminster Hall

[Mr Jim Cunningham (Coventry South) (Lab)]

This is the first time, Ms Dorries, that I have been involved in a debate chaired by you; it is a pleasure to see you in the Chair.

Coventry has had a long and significant economic history, which continues to shape and influence the performance of the local economy and could provide the foundation for its growth. The steady waning of coal mining after the second world war, together with the more rapid decline of our motor industry in the 1970s and 1980s, hit Coventry particularly hard. Coventry’s economic output is now 8.5% lower than the national average, and for Nuneaton and Bedworth it is now 35% below the average, yet Warwick performs 17% better than the national average.

Since the millennium, Coventry has benefited from significant redevelopment and regeneration, and the public sector has been crucial in that process. Coventry has a particularly youthful age profile, and scores well above average in measures of economic adaptability. Rates of growth were increasing before the recession, which suggests that the structural change is largely complete. The city holds many competitive advantages for research and development, engineering and niche manufacturing. However, unemployment is a growing worry. The latest figures from the House of Commons Library reveal that Coventry has 10,324 unemployed job seekers, and things are likely to get worse as the year progresses.

Coventry is famous for making cars, but it is public sector workers who drive much of the local economy. As we know, Becta and the Qualifications and Curriculum Development Agency are being abolished. It may have seemed the easy option to get rid of these education quangos, but they employ a combined total of close to 800 people. Many are former teachers. The relocation of the QCDA cost the Government more than £44 million, and it came at a personal cost to many of the staff who relocated from London.

We cannot ignore the strain on the private sector. Friends Life, formerly Friends Provident, recently announced that it plans to close its offices in Coventry by the end of the first half of 2012. There are 428 jobs at stake, and staff will be badly affected. That brings total job losses in Coventry to around 3,000.

I turn to the scale of the grant reductions that Coventry faces. Because of the cuts, the city council is being forced by the Tory-led Government to cut as many as 500 posts over the next 18 months. The amount of money that the council spends in the local economy will also be dramatically reduced. That, too, will have an impact on council staff. The front-loading of cuts means that staff losses will be required in the early stages of the spending cuts. That will affect families throughout Coventry. The overall impact is that Coventry city council is expected to lose about £45 million over the next few years.

The cuts will have an impact on the economy of the west midlands. They will have a significant knock-on impact on local businesses and employment in the region. We can see what is happening in other sectors as the cuts and reforms begin to bite. For example, cuts of more than 20% to the West Midlands police equate to 2,500 jobs.

There are two parts to the Department for Communities and Local Government cuts for Coventry council. It will lose formula grant of more than £19 million, and specific grants in excess of £17 million. The city council will not be able to continue providing services at the same level. Because of the latter cuts, there will be far fewer grants and they will have a lower overall value. It is a matter of great concern that many grant streams will end.

The vulnerable people of Coventry will be hit a number of times by the Government’s deficit reduction plan. Pensioners were dealt a blow by Government when the winter fuel payment was slashed by up to £100. How can those who are disabled or who live in care homes take part in the Government’s big society once the mobility component of the disability living allowance has been removed? Has the Minister considered the effects of reduced local government budgets on the cost per placement of patients on independent care providers such as Southern Cross? Notwithstanding the burden on the NHS, local hospitals will be expected to deliver far-reaching reforms to patient care as their budget decreases and demand increases. How can the Minister justify removing the provision of face-to-face legal advice for the poorer residents of Coventry in favour of a cheaper phone line?

I am deeply concerned about local provisions for our young people. Building Schools for the Future is to be abolished. That will result in a loss of £300 million to the local economy in construction, which can be added to the cuts in the council’s budget We await the James review—it has been a long time coming—but that is of no comfort to schools that are in desperate need of repair. From this year, the Connexions careers service will operate on a budget that is more than 70% smaller than in April 2010. The service gives young people the skills and confidence to get into the workplace. Its downsizing will doubtless contribute to the high youth unemployment that the region has experienced.

The coalition Government admit that Sure Start will suffer real-terms cuts. Ministers refuse to deny that this will result in the closure of Sure Start centres. However, Sure Start centres in Coventry will lose nearly £600,000, which will be a great blow to young families. Services for young people face other financial pressures. Coventry’s children, learning and young people’s department has announced a further £1.2 million loss because of the ending of the 5% standards fund.

Crucial retention funds that the council had relied upon will not be continued in the next financial year. The largest proportion of JSA claimants in Coventry are aged between 18 and 24. Given what I said about the Coventry’s youthful profile, there is no reason why our young people should not be given the opportunities that they need as it will strengthen Coventry’s regeneration.

All these changes will have an irreversible effect on the economic growth of the region. The leader of Coventry city council estimates that up to £25 million will be taken out of the local economy. The public and private sectors will not be able to invest in the regeneration of the region and its infrastructure.

There is an urgent need to address infrastructure issues. We need an increase in train travel between Coventry and Nuneaton, and Coventry and Leamington. The go-ahead for a new station at the Ricoh arena is vital to Coventry’s economy. Equally, we are waiting for the Friargate development to go ahead; again, it could have a big impact in revitalising the city centre. Revitalising the city will obviously create jobs.

[Mr Bob Ainsworth (Coventry North East) (Lab)]

I raise the question of what I fear is the impending sale of the strategically important land at Ansty. If a developer gets hold of that land, the possibility is that it will sit on it, waiting for the maximum return. That will probably be through housing rather than what it was meant for, which was job creation in the high-tech manufacturing sector.

[Mr Cunningham]

My right hon. Friend anticipates me, as I was just coming on to that.

The abolition of RDA funding means that there is little to lever in private sector investment for large-scale redevelopment projects. Although the prospect of 10,000 jobs in the enterprise zone is welcome, questions arise on the implications for other employment sites such as those at Ansty and Browns lane. In answer to my right hon. Friend, I am sure that he will remember, as will my hon. Friend the Member for Coventry North West (Mr Robinson), that we lobbied hard to get the Ansty site as a technological centre, and the city and the west midlands invested a lot of money in it—if my memory serves me correctly, the investment for the infrastructure was somewhere in the region of £5.9 million. It is vital that the Minister clears up the future of that site. A lot of taxpayers’ money has been invested in it and some companies are operating from it at the moment. How does the development of that site square up with the proposal to create 10,000 jobs at Coventry airport? Although my hon. Friends and I do not deny that such jobs are needed, we need the issue to be sorted out one way or another. The public in Coventry want to know why some of those jobs cannot be located on the Ansty site. My right hon. Friend, therefore, raises a vital point, which is of interest to a lot of people, particularly those in Coventry.

My next point relates to the impact of the Localism Bill. Local people seek assurances from Government that there will be no fire sale of employment sites in need of overhaul, such as the Ansty and Browns lane sites, to help address the deficit. I have dealt with the Ansty site, but of equal importance is the Browns lane site, which was once a manufacturing site for Jaguar in Coventry—let me just say in passing that my hon. Friends and I are glad to see that Jaguar is reinvesting in the west midlands and in Coventry.

The Localism Bill also applies to the Coventry airport site, which is a proposed enterprise zone. Some major environmental issues will arise from the development of that site and the Severn Trent site. People will be testing the Localism Bill to see whether the public will have a major say in any development initiatives. Many people in Coventry are worried about the use of greenbelt land for example. We will soon find out whether the Government mean what they say about localism.

The Government need to address the balance of housing and employment. The highest rates of unemployment are generally found in the neighbourhoods that were based around the mining and manufacturing industries of the past. That highlights the key role that places can play in creating and sustaining unemployment. Areas housing large numbers of unemployed, low-skilled and vulnerable residents cannot generally attract business investment.

I will finish here because I know that my hon. Friend the Member for Coventry North West wants to speak and we obviously want to give the Minister time to answer our points.