Budget Resolutions

Chris White Excerpts

1st reading: House of Commons
Tuesday 14th March 2017 Commons Chamber

[Chris White (Warwick and Leamington) (Con)]

I am delighted to follow the hon. Member for Huddersfield (Mr Sheerman). We work together in many areas, including as co-chairs of the all-party group on manufacturing. He displayed his typical passion in his speech this afternoon. My view is that we must be forward looking in our approach and embrace an increasingly dynamic economy. If we tie that in with our industrial strategy, we have much to be optimistic about.

I start by acknowledging the positive news on employment. A record 31.8 million people are in work, which is reflected in the figures in my constituency. Businesses can be particularly proud of the fact that there has been a 74% fall in unemployment since 2010. Naturally, as the unemployment figure falls, it becomes increasingly difficult to reduce that figure further. For that reason, we must think differently about developing a skills base and investing in research and development. Industry 4.0 is a prime example of an idea that must be integrated into Government policy and that must span a range of Departments.

I also welcome the introduction of T-levels. Technical education has the potential to boost productivity. The new system, which will be introduced in 2019, increases the number of hours on such courses and includes good, strong work placements. I spoke in a recent debate on the productivity plan. If we are to improve productivity in the UK, we must first improve our domestic skills base. The £500 million per year in extra funding for technical education is a boost. Warwickshire college, which is in my constituency, is an example of what can be achieved.

Giving parity of respect to technical education in relation to A-levels has been something in which I have long believed. I am pleased that the Government have recognised the significance of this standard. More generally, strengthening ties between our education system and business should be a priority, particularly as the demands on businesses will continue to shift with the changing landscape of the economy.

I welcome the national productivity investment fund, which was announced in the autumn statement, and the funding that will be provided through the spring Budget to upgrade transport infrastructure. In the midlands, some £23 million will be directed towards improving the transport network. Wider spending on infrastructure with a focus on providing the very best framework for business is vital. The launch of the industrial strategy challenge fund is also very welcome, particularly with its focus on investing in innovation. It is absolutely the right approach to take and I hope that it can be built on as the strategy develops.

During the Queen’s speech debate last year, I spoke about the importance of shaping an industrial strategy to give certainty and confidence to British business. Despite being a little alone with that opinion on the Government Benches, I welcomed the industrial strategy Green Paper and the development of the Department. With this new funding, projects that further the capabilities of the automotive sector and that increase the longevity of batteries in electric vehicles can go a long way in securing a prosperous and sustainable future. Investment in infrastructure in tandem with investment in R and D is vital if our potential is to be realised.

The midlands is well placed to be at the forefront of such technologies, and it is in that context that I welcome the launch on Thursday of the midlands engine strategy, which specifically mentions the automotive industry and the fact that 39% of UK employment in the sector is in our region. With a strong science and research base, providing additional support to the midlands is the most effective way of enabling the UK to take a greater share of the international market. Regional empowerment should be a key consideration of Government policy. Sustained support for the midlands engine is, therefore, vital.

My final point is about the concern of a number of businesses in my constituency about business rates. In recent weeks, I have canvassed opinion locally on the upcoming changes to rateable values. By way of an example, a pub in my constituency is seeing a rise from £18,000 to £68,000. Another is seeing an increase from £33,000 to £94,000. Elsewhere, a business is seeing its rateable value rise to £12,500; being £500 above the rates relief threshold will mean a further tax bill of £6,000. Even for successful enterprises, these significant hikes in business rates risk jobs losses and closures of businesses altogether. The £1,000 business rates discount for one year for pubs with a rateable value of up to £100,000 is put into context with the rises I have just mentioned. Allocating £435 million towards supporting those that will be particularly impacted is welcome, but I urge the Chancellor to review the issue urgently.

[Mr Speaker]

I call Gareth Snell for his maiden speech. [Hon. Members: “Hear, hear.”]

Maintained Nursery Schools Funding

Chris White Excerpts

Wednesday 1st February 2017 Westminster Hall

[Helen Jones (Warrington North) (Lab)]

I beg to move,

That this House has considered funding for maintained nursery schools.

It is a pleasure to be here under your chairmanship, Ms Dorries. It may help if I say at the outset that I do not intend to speak for long and will take only a few interventions; otherwise I shall be unfair to colleagues, many of whom want to make speeches.

We are here because we fear for the future of maintained nursery schools—the jewel in the crown of early years education. Maintained nursery schools have an outstanding record of providing for the very youngest children; 60% of them are rated outstanding by Ofsted, and 39% as good. That record of excellence is equalled nowhere else in the education sector. It is not anything like equalled even in the early years sector, where only 17% of other nurseries and preschools, and 13% of childminders, are rated outstanding. One would think that any Government would want to preserve and even expand a system that achieves such a degree of excellence, but unfortunately the reverse is true. The Prime Minister told me last week that she wants

“good-quality education at every…stage”.—[Official Report, 25 January 2017; Vol. 620, c. 285.]

However, when the Government started their consultation on early years funding, it is fair to say that it caused panic in the maintained nursery sector.

The response to the consultation has done little to allay the feeling of panic, because the Government want to fund all providers equally. They tell us that the average amount paid per hour for three and four-year-olds will rise from £4.56 to £4.94, and that no council will receive less than £4.30 an hour, so that providers can be paid at least £4. That would sound extremely reasonable if all providers had to abide by the same rules and do the same things, but they do not. That is the real problem. Even with the transitional funding that the Government have promised, one in 10 nursery schools still think they will have to close by July and 67% believe they will have to close by the end of the transitional funding.

[Chris White (Warwick and Leamington) (Con)]

I congratulate the hon. Lady on securing this important debate. Warwick Nursery School and Whitnash Nursery School in my constituency will face a funding decrease under the proposals. Does she agree that the Government should revisit those proposals, so that such nurseries are not placed under a disadvantage or, worse still, forced to close?

[Helen Jones]

I agree absolutely, for reasons that I hope to set out. Having just seen that every school in my area will lose money under the Government’s so-called fair funding formula, even though we were already one of the lowest-funded authorities in the country, I think that we should treat everything with a fair degree of scepticism until we see the basis on which all the funding is allocated.

Oral Answers to Questions

Chris White Excerpts

Tuesday 28th June 2016 Commons Chamber

[Sajid Javid]

I assure the hon. Gentleman that the proposals are not modest. The small business commissioner will have significant powers and the ability to help, including by providing general advice and direct services for the smallest of businesses. The commissioner will also be able to consider complaints and to take super-complaints from trade bodies.

[Chris White (Warwick and Leamington) (Con)]

3. What recent steps he has taken to create the midlands engine.

[The Secretary of State for Business, Innovation and Skills and President of the Board of Trade (Sajid Javid)]

I continue to promote the midlands engine, which could add an extra £34 billion to the local economy by 2030 and create 300,000 new jobs. I am pleased that Sir John Peace has been appointed chair of Midlands Connect to drive productivity and growth across the whole of the midlands region.

[Chris White]

Whether through energy providers, video games companies or manufacturers, Warwick and Leamington’s local economy is a great contributor to the region’s prosperity. What measures are being implemented to build on such successes and to transform the wider midlands engine from concept to reality?

[Sajid Javid]

I recall fondly visiting video games companies with my hon. Friend, who does a great deal to help local businesses, including by hosting a business forum last Friday. The midlands engine is already delivering. For example, we have a £5 million trade and investment package, £60 million for research, and a £5 million award for Midlands Connect. I am determined to do more.

Enterprise Bill [Lords]

Chris White Excerpts

Tuesday 2nd February 2016 Commons Chamber

[Chris White (Warwick and Leamington) (Con)]

The Bill contains a wide range of measures, but I shall focus specifically on the Government’s further action on apprenticeships. The target of 3 million apprenticeship starts by 2020 is a welcome ambition, but we must ensure that they are of sufficient quality to equip those enrolling on an apprenticeship with the necessary skills, and to increase the flow of talented individuals into the workplace. Addressing the skills gap must be an absolute priority.

I have seen many examples in my constituency of the value of apprenticeships to all parties, and I am pleased to report that since 2010 there have been 3,450 apprenticeship starts, no doubt assisted by the demand created through the strengthening of our economy. Some 99.3% of businesses are SMEs, and it is therefore essential that we incentivise and encourage them to take on apprentices. I welcome the fact that the apprenticeship grant for small businesses has been extended for another year.

The Secretary of State wrote in The Daily Telegraph about an imminent fourth industrial revolution, and stated:

“We led the Industrial Revolution over 200 years ago when scientific leaps and technological innovations brought enormous economic benefits and improvements to living standards.”

Industry 4.0 refers to the fourth industrial revolution and the rapid advancement of technology that will change our economic landscape further. Such technology includes machinery that can improve efficiency and productivity. It is therefore vital that our workforce are sufficiently skilled to use that new innovation.

Warwickshire College, in my constituency, is doing its bit to equip young people with the skills necessary to succeed. It has recently opened an engineering block, with provision for a further 285 advanced apprenticeships and 253 higher apprenticeships. As I mentioned in a debate last year on vocational qualifications, we must work harder to achieve parity of esteem between academic and vocational courses.

[Melanie Onn]

I fully support apprenticeships; indeed, I am taking on an apprentice in my office, which I hope exemplifies the point. Government data published this week show that young people from low-income households in north-east Lincolnshire are less likely to receive post-16 qualifications than those in other areas of the country, even though they are more likely to get good GCSEs. My concern is that there is an over-emphasis on apprenticeships and insufficient support for other training opportunities, with apprenticeships being the only game in town. I am concerned that insufficient training is available for young people in post-16 education to meet the skills gap that so obviously exists.

[Chris White]

I appreciate the hon. Lady’s comments. We should ensure that each part of our society and all parts of our education system recognise what our young people need to succeed. The target of 3 million apprenticeships by 2020 is a major step towards achieving that, but we must recognise that there are other needs as well.

It is important to recognise that our young people need to see the benefits of earning and learning. The Government measure to protect the term “apprenticeship”, in the same way that the term “degree” is protected, is excellent. If the target of 3 million apprenticeships is reached, the achievement will, of course, be more significant if they are high quality.

The move will add to the strengthening of the reputation of apprenticeships as a good way to start a career. It may be worth the Government investigating the possibility of allowing those who have completed an apprenticeship to use a suffix after their name, similar to the recognition given for achieving a degree. Coventry City Council offers the freedom of the city to those who have completed an apprenticeship. I understand that it is the only local authority in the country to do so. I see such initiatives as an excellent way to build prestige around apprenticeships. I encourage other local authorities to do the same.

The all-party group on manufacturing and industry leaders, in discussing the future of the sector, made it clear that we need to make a concerted effort to invest in skills to improve our productivity and competitiveness on the international stage. Apprenticeships can be instrumental in addressing the skills gap, which is absolutely vital for the future of the UK economy.

I welcome the measures in the Bill that allow the Secretary of State to set targets for public bodies in relation to the number of apprentices employed. Progress has been made, with a number of apprentices working across Whitehall, but the new powers will ensure that the public sector is a part of that ambition. I would like to touch on the use of the Public Services (Social Value) Act 2012 and the positive effect it can have on apprenticeship schemes. Partnerships between the public and private sectors to deliver projects have resulted in the commissioning of tenders that include an aspect of social value, such as the creation of additional apprenticeships.

We have come a long way since the concept of apprenticeships began in this country in the 12th century, but their value cannot be overstated. With 2.3 million apprenticeship starts in the previous Parliament, we have made great strides. The further Government target for 2020 is to be welcomed. I sense a tipping point with apprenticeships and I, for one, look forward to a new generation benefiting from these schemes and to how strongly the initiative will contribute to our economy.

Vocational Qualifications Day

Chris White Excerpts

Tuesday 9th June 2015 Westminster Hall

[Chris White (Warwick and Leamington) (Con)]

It is a pleasure to serve under your chairmanship, Sir Roger, and to follow the excellent speech by my right hon. Friend the Member for Basingstoke (Mrs Miller).

I congratulate my hon. Friend the Member for Stroud (Neil Carmichael) on securing this important debate and on raising vocational education’s profile in Parliament. I cannot claim to have been a college principal, but I can claim to have studied a BTEC ordinary national certificate in engineering, which is probably as rare as hen’s teeth in this place.

[Mr Sheerman]

It may not be as rare as my vocational qualification. I failed my ONC at the City College in London, but I passed intermediate paint technology.

[Chris White]

I do not think there is any possible response to that.

As a result of my background, I am a passionate supporter of further education. Warwickshire College, whose headquarters are in my constituency, is one of the best such colleges in the country. It has six centres across Warwickshire and Worcestershire, with more than 15,500 students attending each year. It offers more than 1,000 courses across 20 different subject areas, including management. It has the highest enrolment among 16 to 18-year-old students and one of the highest success rates among larger FE colleges in the country.

To its credit, the college has developed strong links with employers. As result, it trains more than 1,750 apprentices every year in a variety of sectors, from agriculture and farriery to construction and digital media—an area that colleges are beginning to embrace with open arms. The college offers a broad range of courses and subject areas, and it is, importantly, addressing two national skill shortage areas.

Capital investments of more than £10 million mean that two important projects—in horticulture and engineering—will be completed by September, ready for students attending from the start of the academic year. As part of the college’s expansion and development, a new engineering building is being constructed at Warwick’s Trident College. The new complex will comprise specialist engineering workshops, 12 teaching labs, three computer labs and three specialist, tailored engineering technology labs. The aim is to create the capacity to meet demand for an additional 285 advanced and 253 higher apprenticeships in the manufacturing, mechanical, electrical, electronic, automotive and product-creation sectors, providing skills the country desperately needs.

There have been fantastic achievements in terms of the number of students who progress directly into higher education, although that is not the essential goal. To mention just a few examples, the number in agriculture is 95%; in construction, it is 94%; and in computing and IT, it is an astonishing 99%.

As parliamentarians, we must discourage the perception that further education is a second-tier choice—to be taken up only if one’s first preference has not been achieved. In fact, FE is quite the reverse. Many students now see the benefits of a practical and vocational education that provides them with the skills and real-life work experience they need to get on.

Links with business are key for the FE sector. Businesses can recruit from colleges, but they can also help them financially and practically as they tailor courses to the needs of business and the wider workforce. For the last 18 months, for example, the college has been involved in the trailblazer apprenticeship scheme, which allows employers—in this case, Jaguar Land Rover—to partner with the college to reform apprenticeship frameworks and ensure that they are the best training for future employees. In engineering, the college also has links with more than 40 small and medium-sized enterprises, with the aim of increasing that to 65.

Nationally, support from the Government is essential. The Government have done a great deal over the last five years to invest in vocational education. Two million apprenticeships were started during the last Parliament, and I fully support the aim of delivering 3 million by 2020. Businesses can also support vocational education. As I mentioned, encouraging them to partner with colleges and other FE providers benefits all concerned.

We must work hard to ensure that vocational education’s contribution to the economy is more widely acknowledged and that there is appropriate recognition for vocational education. We must commit to working towards parity of esteem between vocational and academic qualifications by continuing to raise the standards and promote the benefits of vocational education.

Living Wage

Chris White Excerpts

Thursday 6th November 2014 Commons Chamber

[Chris White (Warwick and Leamington) (Con)]

I beg to move,

That this House has considered promotion of the living wage.

I am sure that the House is grateful to you, Madam Deputy Speaker, for your clarification with regard to the noises outside the Chamber.

The second debate this afternoon is on a very important, but more domestic topic, on which I am pleased to say that there is a great deal of cross-party support and consensus. Despite the fact that not as many Members are in the Chamber as I would have wished, I am sure that they are working hard in their constituencies, or particularly hard in one constituency.

We can all agree on the importance of a fair day’s pay for a fair day’s work, and there is a sincere commitment on both sides of the House to ensure that hard-working people are rewarded for their efforts. I look forward to contributions to the debate from both sides of the House.

Today’s debate is also timely, taking place as it does during living wage week. As Members are no doubt aware, earlier this week the UK living wage was raised to £7.85, and the London living wage to £9.15. The new figures represent an increase of 2.6% on the 2013 rate and will improve the take-home pay of some 35,000 people, who are among the lowest paid workers in the country.

Since 2013, more than 60,000 people have been given a pay rise through the living wage. This year, the number of FTSE 100 companies that have signed up to the living wage has increased significantly from four to 18. I lay down the challenge as to which will be the next.

[Guy Opperman (Hexham) (Con)]

I congratulate my hon. Friend most wholeheartedly on securing such an important debate in living wage week and welcome the work that he is doing, especially on behalf of the all-party group on poverty. Does he agree that those companies that adopt the living wage are bound to see not only a dramatic improvement in their staff retention and a reduction in their turnover but an increase in the productivity of their staff? That has been demonstrated by Costco in America, and Barclays, and KPMG in this country?

[Chris White]

I agree wholeheartedly with some of my hon. Friend’s points, and I thank him for being such a strong advocate of the living wage.

[Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)]

I am glad that the hon. Gentleman has brought forward this debate today, along with other colleagues. But we must get real. It is also a fact that under the Government whom he supports, the number of people below the living wage has risen from 3.4 million to 4.9 million in this country, so we need to think how to move forward. Does he agree that we need to get to a situation where every worker employed by Government or local government, or contracted to Government or local government, should be paid at the very least the living wage?

--- Later in debate ---

[Chris White]

I am grateful to the hon. Gentleman for his comments and I certainly will deal with how we can encourage other Government Departments to lead the way on this.

I am delighted to have the opportunity to lead the debate. The all-party parliamentary group on poverty is most ably chaired by the hon. Member for Stretford and Urmston (Kate Green), and I as the vice chair and other members have been strong advocates of increasing and supporting the living wage. I take this opportunity to thank the hon. Member for North East Derbyshire (Natascha Engel) and the Backbench Business Committee for scheduling the debate today.

The all-party group has done a great deal of work, alongside the Living Wage Foundation, to promote the living wage and the benefits that it has for business, employees and society in general. According to a recent report by KPMG, an estimated 5.24 million people in the UK earn below the living wage.

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

The hon. Gentleman should be congratulated on bringing forward this debate. As large numbers of people are paid below the living wage, surely we should review the benefits system that seems to subsidise employers who pay very low wages. Should that not be looked at?

[Chris White]

The hon. Gentleman makes an important point. How we improve the take-up of the living wage will address some of his concerns. I hope that some of my right hon. and hon. Friends will show how this can be a benefit not just to employees but to society in general.

Despite the comments made so far, there is a positive trend in the number of employees receiving the living wage. Research from Queen Mary university of London has shown that the total number has grown significantly during the last decade. The benefits of paying staff the living wage have been widely documented. Research shows that those working in organisations that are signed up to the living wage have better psychological well-being than those working for non-living wage employers. This research also found that two thirds of employees on the living wage reported improvements in their work, family life or finances.

Businesses have reported positive effects. London Economics found that 80% of employers noticed an increase in productivity. Further research revealed that employers reported improvements in staff retention and well-being. The Living Wage Foundation research found that 75% of employees reported increases in their work quality as a result of taking up the living wage. Also, half of employees felt that the living wage had made them more willing to implement changes in their working practices.

As many in the House will be aware, the Living Wage campaign began 15 years ago as Citizens UK. It felt there was a need to respond to the levels of deprivation being experienced by people despite the fact that they were in full-time work. Although record numbers of people are in work, the Low Pay Commission found that the majority of those in poverty had a job.

In 2010-11, the Living Wage Foundation was established to develop a system through which to recognise those employers who were paying their staff a living wage.

Accreditation is awarded to companies that pay the living wage to all directly employed staff and those regularly working on their premises.

In the private sector, provision of the living wage has become a key part of many organisations’ corporate social responsibility agendas and—dare I say it?—the social value agenda. I refer hon. Members to my private Member’s Bill—now the Public Services (Social Value) Act 2012—which Members across the House supported, and I pay tribute to the work it has achieved. In Monday’s edition of The Guardian—that shows how consensual I am being—an article by Matthew Jackson specifically referred to the potential use of that Act in encouraging the uptake of the living wage:

“The living wage should be embedded into the way councils commission and procure goods and services. Councils can link procurement to strategic priorities to address low pay. They can have contracts that state potential suppliers must pay the living wage and they can use the Social Value Act…to encourage and cajole suppliers.”

That is an idea well worth pursuing.

This week it was announced that more than 1,000 companies now pay their staff the living wage—another milestone—which is more than double the number at the same time last year. It is an impressive result, and one that I hope marks a tipping point and the beginning of a cultural change.

I am pleased to note that the living wage campaign has consistently enjoyed cross-party support. This Government believe that work is the surest way out of poverty, and I share that view, as does the Living Wage Foundation. Government Departments have signed up to pay the living wage and Whitehall is now leading the way. The Department for Work and Pensions and HM Treasury are two of the Departments doing that. However, there is still some discrepancy between the pay received by contract staff, particularly cleaners, within Government Departments. I would like to take this opportunity to call on all Departments to follow the example of those that pay their contract staff the London living wage.

[Guy Opperman]

At the meeting of the all-party group on poverty this morning, along with the Living Wage Foundation and Citizens UK, I was lucky enough to meet a young man called Nana-Ben, one of the cleaners at the Department for Transport. He is not paid the living wage, and he spoke very eloquently of the problems he suffers as a result. The fair point to be made, however, is that he is one of 45 cleaners employed by Amy Cleaning, a large corporation that provides services to the Government. Do not those companies, as well as Government Departments, need to look at what they are doing so that we can get the change we all wish to see?

[Chris White]

I think that both parties have to work very closely on that. I believe that when contracts are being tendered there is certainly an opportunity that we should not miss. It is not right for either party to look for the lowest cost contract by excluding the living wage from the discussion.

[Albert Owen (Ynys Môn) (Lab)]

I congratulate the hon. Gentleman on securing the debate. He is making an important point about Government Departments paying the living wage through agencies. It is also the case—I am finding this with private companies as well as the public sector—that those agencies can be paid an equivalent of more than the living wage, when their costs are combined. Is that not something that the Government and other commissioners should look at, because the companies are not getting a great deal, and neither are their employees?

[Chris White]

I am grateful to the hon. Gentleman for that thoughtful intervention. If payment is made with the intention of paying staff the living wage, that increase should feed through directly to the employees. One reason for promoting this discussion today is to see how such employers can be embarrassed into making the right decisions for the people who work so hard doing these jobs, which sometimes we do not notice, but we would if they were not done. I pay tribute to all the people who work under these circumstances. Their tremendous work should be recognised.

Here in the House, the living wage is paid to staff. That is a leading example of doing the right thing, not least in my office, where an intern worked for me. He was paid the London living wage until I took him on on a full-time contract. He is probably watching this speech, and I congratulate him on his excellent work.

The living wage logo, which some of us, probably inappropriately, are wearing in the Chamber this afternoon, is a badge of honour for many employers. I am pleased to note that when, like me, they finally get the badge, a number of MPs have stated that they would be happy to support and promote it.

The best way to illustrate some of the positive impacts of the living wage is to highlight examples of employers and staff who have directly benefited from it. The Living Wage Foundation has compiled a list of employees and employers who have spoken of the benefits and the effective results that they have experienced through paying, and being paid, the living wage. Most employees speak of a reduction in stress and anxiety about financial pressures. Employers point out that paying a higher wage may attract better staff whom it rewards for their hard work. There is obviously ultimate value for their businesses as a whole.

[Guto Bebb (Aberconwy) (Con)]

I congratulate my hon. Friend on securing this debate. Does any of the evidence collected relate to very small businesses? In my constituency, a lot of small businesses would be keen to pay the living wage, but they are concerned about the impact on their very small profit margins. Does any of the research undertaken indicate a benefit for those smaller businesses in communities such as mine?

[Chris White]

I will come to some of the data that have been provided by the Federation of Small Businesses, which paint a picture that is perhaps rosier than my hon. Friend might think.

I should like to recognise the organisations in my constituency that have been accredited as living wage employers: Alsters Kelly solicitors, St Margaret’s church in Whitnash, and Warwick Gates community church. I pay particular tribute to WAYC—the Warwickshire Association of Youth Clubs—of which I am a trustee.

I call on local authorities that are not accredited living wage employers to follow the example of many across the country that are. Too few local authorities have committed to paying their staff the living wage. This might seem a naive question to the Minister, but I wonder why some do and some do not. Local authorities that do not pay their staff a living wage should speak to those that do, and see at first hand the benefits that it can provide.

Take-up of the living wage has grown exponentially, but we need to think about how it can go further. We can achieve that by encouraging employers, sharing case studies and best practice, and generally promoting the benefits that I have stated. The voluntary nature of the living wage scheme is currently working well. At this stage, as we see the numbers increase, encouragement is perhaps a better start than compulsion. The Government are committed to raising the minimum wage and, through a provision in the Small Business, Enterprise and Employment Bill, cracking down on employers who are evading their statutory responsibilities by significantly increasing—from £5,000 to £20,000—fines for underpaying staff. I note that the Living Wage Foundation does not recommend the introduction of a statutory living wage on the basis that a strong minimum wage protects workers from exploitation. Instead, it seeks a position for the living wage as a voluntary, stretching target that employers can aspire to and on which they should be challenged, encouraged, and supported to achieve at a level beyond their statutory obligations.

I appreciate that it is not possible for all employers to pay a living wage. Its provision depends on many factors, including the size of the company. Some companies are in a position to take on the required increase in staff costs. Employers should not be unfairly criticised if they cannot afford to pay their staff the living wage. As the Institute of Directors has pointed out, we must be wary of stigmatising such companies. Nevertheless, as a general principle everyone should be able to share in economic growth. Employers who can afford to pay the living wage should be encouraged to do so. Perhaps the Minister can help with that.

Since the last election, businesses have created more than 2.1 million new jobs. Those businesses deserve our support and encouragement for their hard work and dedication in boosting our economy. Research by the FSB found that 77% of small firms pay all staff above the minimum wage and 53% pay them above the living wage. Another key statistic revealed by that research was that seven in 10 small firms expected to increase staff pay in 2014.

That brings me back to the purpose of this debate: the promotion of the living wage, which is good for employees, good for business and good for society. Businesses need to be encouraged, supported and shown the benefits. Let us have an ambitious target for the living wage next year. My final question to the Minister is: how can we encourage more employers to adopt the living wage so that many more can share in the proceeds of growth?

--- Later in debate ---

[Chris White]

This debate has been about the promotion of the living wage, and thanks to the contributions from both sides of the House, we have very much had that debate. I am grateful to Members who shared their experience and supported the development of this very important discussion. We have heard evidence of how important and good the living wage is for individuals, businesses and society. I think we all realise that we need to go further. It is important to remind ourselves that this is not just about living wage week; we need to be discussing and thinking about the living wage all year round. To all Members who took part, thank you very much indeed.

Question put and agreed to.

Resolved,

That this House has considered promotion of the living wage.

Manufacturing and SMEs

Chris White Excerpts

Wednesday 4th September 2013 Westminster Hall

[Chris White (Warwick and Leamington) (Con)]

I thank my hon. Friend the Member for Carlisle (John Stevenson) for securing this important debate and giving us another opportunity to discuss this topic, as we have done over many years.

One of my concerns, given the welcome news about the upturn in growth in the UK economy, is that politicians—and we are politicians in this Chamber—may move away from a focus on manufacturing and the good results that it could produce for the rebalancing of the economy. We could move back to property booms and financial services, which I think all those present would agree would be a very bad thing. We have a window of opportunity to establish policies to get manufacturing growing strongly once more.

The key is small and medium-sized businesses. The Government need to take steps now to prevent manufacturing from being neglected as growth returns to the economy. They need to ensure that incentives are set up for lenders to support our manufacturers, rather than pouring investment into quick returns in sectors such as property or financial services.

One of the simplest and easiest ways to get support to those manufacturers is through changes to capital allowances. The Chancellor rightly increased the annual investment allowance, which will enable them to upgrade plant and equipment in the next two years. However, if we are to attract more significant manufacturing activity, and enable small and medium-sized businesses to integrate into supply chains, we need to make the capital allowance structure more competitive, and encourage larger manufacturers to base themselves in the UK, which will in turn help the small and medium-sized businesses.

According to the Oxford university centre for business taxation, the present value of capital allowances as a percentage of cost for capital investment is just 46.5% in the UK. That is lower than in Japan, Germany, the United States, Turkey, France, South Korea and virtually all our major competitors. It makes investing in the UK far more expensive for manufacturing businesses than it is elsewhere, and we should not be surprised that, despite a strong skills base and depreciation in sterling, manufacturers are still not flocking as quickly as they might.

Like the rest of the economy, manufacturing is an ecosystem that requires diversity. To increase the number of small and medium-sized manufacturers, we need to increase the number of larger manufacturers in the country, to create resilient supply chains that can weather global economic storms. That, I think, is the key to what has happened in Germany and the United States. We should not ignore small and medium-sized manufacturers while we go about it, but we will need to continue a generous regime of investment allowances for the businesses in question, so that they can compete and provide a base on which large manufacturers can build supply chains.

Another area where we can help businesses is through the availability of skills and apprentices. There has been a fantastic, massive surge in apprenticeship applications in the past 12 months, but manufacturing and engineering are still not the main destination. Business administration, child care and customer service are still the three most popular areas. Perhaps that has something to do with the image of manufacturing in society, which those present for the debate are trying to help to promote.

A way to combat the current situation might be through the creation of apprentice training agencies, similar to those deployed in Australia. Apprenticeships are advertised by the agencies, which then hire them out to small and medium-sized manufacturers. The agencies take on the burden of administration, payroll support and supervision costs, and merely charge the manufacturers something similar to normal agency costs. That will hopefully boost the supply of labour to SMEs and potentially attract young people to work with the companies in the long term.

We need to put policies in place in the next few years so that we have an economy that does not just return to business as usual but is robust, creates sustainable jobs for the future and has manufacturing as one of its key pillars.

Engineering Careers

Chris White Excerpts

Wednesday 13th February 2013 Westminster Hall

[Nadine Dorries]

Yes. I will cover that issue later, but I shall just mention it now. One thing that I did when I was at Autotech was put it in touch with Wootton school in my constituency. Wootton has an application at the moment for a STEM—science, technology, engineering and maths—academy. It seemed to me that it would be a perfect match if the school and the business worked together. The business could get involved in the school and take its business opportunities there. A bit like businesses used to do with “milk rounds” at universities years ago, Autotech could do a milk round in the school and try to nab them young and get them more interested in a different form of career. My hon. Friend is absolutely right: it would be an ideal solution to get engineers as members of the governing bodies of schools, if only to influence how teachers think about the career prospects for their pupils in the future.

[Chris White (Warwick and Leamington) (Con)]

As co-chair of the associate parliamentary manufacturing group, I can tell hon. Members that nearly every meeting I have attended talks about the shortage of skills and particularly the challenge of recruiting high-quality engineers. We often try to intervene too late, when young people have already chosen the subjects that will decide their future. Does my hon. Friend agree that we need to focus even more resources on the early years of secondary education and perhaps even on the primary stage to support the sort of initiative that we are discussing?

[Nadine Dorries]

That is a very good point. I had not thought of going down the age range even further, but obviously that is a point for consideration.

Industrial Policy and Manufacturing

Chris White Excerpts

Thursday 22nd November 2012 Commons Chamber

[Chris White (Warwick and Leamington) (Con)]

May I say how delighted I am to follow the hon. Member for Stalybridge and Hyde (Jonathan Reynolds) in this important debate? I must also thank the Backbench Business Committee for scheduling time for it. As co-chair of the all-party parliamentary group on manufacturing, along with the hon. Member for Huddersfield (Mr Sheerman), one of the most consistent messages I hear is that the UK needs to have a comprehensive industrial policy setting out the key economic objectives and the policies we need to achieve them. We need, as a country, to get back on a more sustainable path to growth, which means seeking to balance our books—specifically, by reducing our trade deficit—so that Britain can be more resilient against future shocks and thrives in a more competitive world. Any industrial policy needs to consider the full range of the UK’s economic strengths, from financial services to creative industries and renewable energy. However, the most effective way of achieving a more sustainable growth trajectory is to boost manufacturing and our industrial capacity.

[Gordon Birtwistle]

May I advise my hon. Friend that in 1997 manufacturing was responsible for 22% of our GDP and we had a £4.4 billion surplus on the balance of payments, whereas by 2008 that had reduced to 12% and we had a £42.6 billion deficit on the balance of payments? Does that not show that manufacturing and exports are vital to this country?

[Chris White]

I thank my hon. Friend for his intervention and I note the figures he uses. One target the Minister might like to consider in an industrial strategy is about 15% by 2015—that works in so many ways.

We cannot afford merely to dismiss a large part of our global economy. Emerging markets are focusing on production and industry already, but they will not focus on those things for ever. Soon they will seek to compete with the developing economies in highly lucrative services, as well as in research and development. Where will the UK go then? We need to compete in manufacturing, as well as in services and the creative economy, if we are to succeed in the years ahead. The narrower our economy becomes, the more unstable it will be. We need a broad-based economic strategy, and manufacturing can and must play a crucial role in delivering that.

[Andrew Bingham (High Peak) (Con)]

Does my hon. Friend agree that we must not forget the very small manufacturing companies in my constituency and elsewhere? This is not all about big factories; it is also about small niche manufacturers producing specialist goods in this country.

[Chris White]

I thank my hon. Friend for his intervention. As someone who worked for MG Rover, I had a great experience of the supply chain and some of the smaller businesses that supported it. They have a great part to play in our economic growth, certainly in terms of new jobs in this sector.

It seems clear from the statements that the Government have already made that they understand and appreciate the important role that manufacturing can play in supporting the UK economy. But I hope that the Minister will see these words turned into action, and I believe that means beginning the process of developing a formal UK industrial strategy for the next 10 years, at the very least. Countries such as Germany and Japan, where industrial policy is at the very heart of government, can perhaps operate without such a formal process. However, I believe that the UK would benefit from it, not only through the consultation, debate and consensus building that would be necessary in the formulation of such a document, but from having a document against which civil servants and politicians can be held accountable through regular reviews.

Parliament should be at the centre of the development of this industrial policy. We need a policy that can last beyond the lifetime of one Government, which means ensuring that we have policies that all parties support or broadly favour, so that we create the policy stability necessary for businesses to invest in the UK.

[Guy Opperman (Hexham) (Con)]

It is a year since we last debated manufacturing, on a Thursday late in November 2011. Does my hon. Friend agree that there is some evidence that actual change has taken place, particularly on local banking? That is now that much easier because of the Financial Services Bill, which we passed on 23 April. It means that the smaller businesses so favoured by my hon. Friend the Member for High Peak (Andrew Bingham) can much more ably be financed by local banks.

[Chris White]

I thank my hon. Friend for his intervention. It is fortuitous, and something I did not realise until he mentioned it, that a similar debate was held this time last year. I hope we have made more progress and that that will continue. One issue on which we have made progress is the business bank concept, about which I know that he spoke in that debate.

[Huw Irranca-Davies (Ogmore) (Lab)]

I welcome the hon. Gentleman’s remarks, many of which I agree with. May I point out to him that there is something we could do right now about industrial strategy? A year ago, we were bemoaning the fact that the large energy companies did not have the market certainty to invest in large infrastructure, which would have had a ripple effect on all the smaller suppliers across the UK. Three weeks ago, seven of the largest worldwide energy companies wrote to the Chancellor to say that they still do not have certainty. Will he urge the Government, as I do, to put that certainty in place? There will be a ripple effect of tens of thousands of jobs in this country once we know that we are heading to a decarbonised future.

[Chris White]

All I will say is that energy and how we deliver on an energy strategy must be part of any industrial policy.

One of the most pressing concerns for manufacturing is access to finance. At meetings of the all-party group and with constituents, bank lending is a theme we return to time and time again. We must consider closely how we will reform our banking system for the benefit of our manufacturers, which must be a key part of our industrial policy.

Skills are another area that the Government must consider and I welcome the work that has already been done, particularly on apprenticeships. They are giving more young people the chance to learn skills in some of our excellent educational facilities—not least Warwickshire college in my constituency. We need to do more to strengthen the whole curriculum, however, so that it supports our economy, particularly by supporting science, technology, engineering and maths—the STEM subjects —at primary and secondary schools. We also need to look at apprenticeships so that we have more of the higher level apprenticeships our country needs to compete with other rapidly upskilling economies.

[Kelvin Hopkins (Luton North) (Lab)]

The hon. Gentleman is talking about the importance of education and training. Is he not concerned that every year we have to import tens of thousands of qualified engineers from abroad because we cannot produce enough through our own educational system even for our diminished manufacturing sector?

[Chris White]

Yes, I share that concern. It is incumbent on the House and on partners with an interest in manufacturing and industry to spread the news and create a greater awareness of jobs in industry. It is a matter of attracting people to those jobs, and our education system has a great part to play in that. That brings us back to the question asked by my hon. Friend the Member for Burnley (Gordon Birtwistle).

The Government have also rightly focused on infrastructure, on which the UK needs to improve, and a comprehensive industrial policy would seek to address that problem. A modern industrial policy must work to increase investment, by providing the right incentives and ensuring that the allowances and tax breaks make the UK one of the most attractive places in the world to do business.

Of course, an industrial policy should also consider other areas such as research and development, energy, procurement and export support, but I believe that the most crucial thing is that we should act swiftly to work on building a new industrial policy. Sector strategies are useful, but the main obstacles to UK manufacturing are at a national level.

[Kelvin Hopkins]

Will the hon. Gentleman give way again?

[Chris White]

If I may, I will continue.

A strong manufacturing ecosystem cannot depend on a few favoured industries but must see the whole of industry succeed. We have an historic opportunity over the next few years to develop consensus on a policy that our country desperately needs, working across political boundaries with business, trade unions and policy experts. I hope the Government will take the opportunity to do that, enabling manufacturing to be the engine of the UK economy once again and putting our country back on the path of sustainable and balanced long-term growth.

Oral Answers to Questions

Chris White Excerpts

Thursday 8th November 2012 Commons Chamber

The Secretary of State was asked—

[Chris White (Warwick and Leamington) (Con)]

1. What steps he has taken to increase the amount of information available to people who wish to start their own business.

[The Secretary of State for Business, Innovation and Skills (Vince Cable)]

In January we launched the Business in You campaign to highlight the support available to start-ups. It gives access to online tools, such as a finance finder to help identify local sources of finance. Since then, we have made simple, easy to use information on starting a business available at the GOV.UK website. New businesses have access to 22,000 mentors offering advice on starting and growing a business.

[Chris White]

At the start of the year, Leamington Spa set a new record for the number of companies formed in the first quarter, with 164 new start-ups registered—a 10% increase on the previous record. Will the Secretary of State look at how we get information out to our new entrepreneurs and collaborate with important local bodies, such as the Federation of Small Businesses and the chambers of trade, so that we can capitalise on this new wave of entrepreneurship?

[Vince Cable]

We will do just that and I congratulate the hon. Gentleman on his role in promoting local companies. I was in Leamington Spa recently to meet some video game companies that have started up and he has played a useful role in promoting all that. Last year, encouraged by the overall improvement in the business climate, half a million new companies were established in this country, which is a major indication of the growth of entrepreneurial commitment.