Education and Local Government

Clive Betts Excerpts

Tuesday 14th January 2020 Commons Chamber

[Gavin Williamson]

I thought the hon. Lady was going to raise some exciting prospects. One of the key areas where we can get so much benefit is schools working together right across the country, whether through multi-academy trusts or local education authorities, and I thought the hon. Lady was going to suggest that we have more collaboration between England and Scotland, which we would very much want. The hon. Lady has already heard of our commitment to raise the starting salaries for teachers and to negotiate in terms of teachers’ salaries, and to make sure we listen to what the pay review board comes forward with. But I would like English schools and Scottish schools and those in Wales and Northern Ireland to have much more collaboration—whether in the university sector, the FE sector or the school sector, we can all benefit from that. We have seen great attainments, as were celebrated in the PISA results, where we saw English schools making very good progress. It would be good to have the opportunity to work closely with our Scottish colleagues on how we can share best practice from both Scotland and England.

Our future economic prosperity will depend on having a workforce that has the skills that businesses need now and into the future. We will invest an additional £3 billion over the course of this Parliament to support the creation of a national skills fund, which will build on existing reforms, including ongoing work to develop a national retraining scheme. This is on top of additional capital investment of £1.8 billion into the further education estate, investing in the skills and education required for our nation’s future.

Talented international students and researchers are queuing up to study in the United Kingdom, and they enrich our universities culturally and economically, bringing fresh ideas and new perspectives. That is why the Government aim to host 600,000 international students by 2030. Our new student visa will help us attract the brightest and best and allow those students to stay on to apply for work here after they graduate.

As we prepare to forge a new place on the international stage we want our young people to have the opportunity to study abroad through exchange programmes. The United Kingdom is open to participation in the next Erasmus+ programme, and this will be a question for future negotiations with the European Union. We do truly understand the value that such exchange programmes bring all students right across the United Kingdom, but to ensure that we are able to continue to offer that we will also develop our own alternative arrangements should they be needed.

I have been focusing until now on the ways that we are going to enrich the educational experience for all our pupils and students, but in just the same way as our postcode should not be a lottery that decides the kind of schooling our children receive, it should not determine whether we feel safe when we close our front door. For that reason, we are bringing forward legislation to further the recommendations from Dame Judith Hackitt’s independent review on building safety, and we will give residents a stronger voice, ensuring that their concerns are never ignored.

We also committed to taking forward the recommendations of the first phase of the Grenfell Tower inquiry report to ensure that the tragedy of Grenfell Tower never happens again. We are working to deliver a rental system that protects tenants and supports landlords to provide the homes the nation needs. We will abolish no-fault evictions, helping tenants to stay in their homes while ensuring landlords are given the protections they also need. We are determined to improve standards in rented accommodation and to professionalise the sector. There is no place in this country for squalid or unsafe rented properties. We will make sure that all tenants have a right of redress if theirs is not of an acceptable standard.

[Mr Clive Betts (Sheffield South East) (Lab)]

This may be a question more appropriately directed at the Secretary of State for Housing, Communities and Local Government, the right hon. Member for Newark (Robert Jenrick), who is sat next to the right hon. Gentleman on the Treasury Bench, but he mentions Grenfell and dealing with fire safety issues. The problem is that, at present, there is a difference according to where you live. I know the Government are doing a review, but if leaseholders have a form of cladding that is not of limited combustibility but is not ACM cladding, basically there is no help for them. Many are living in flats that are now unsaleable. The Government really have to address that issue. I look forward to a commitment that that will be done, if not from him then from his colleague next to him.

[Gavin Williamson]

As the hon. Gentleman said, that is currently being reviewed by an expert panel. I am sure that my right hon. Friend the Secretary of State for Housing, Communities and Local Government will go into more detail when he responds to the debate at close of business today.

We, as a Conservative party, understand the importance of owning your own home. As a Government committed to a fairer society, it is crucial that we address the divide between those who can afford their own home and those who cannot. Our first home scheme will provide local people with a discount on the costs of a new home, which will save them tens of thousands of pounds. Our shared ownership reforms will provide a further route to home ownership. We will deliver at least 1 million more homes over the next five years to help more people on to the housing ladder. We will also put an end to the abuse of leaseholds by banning new leasehold houses and restricting future ground rents to a peppercorn.

No less important than people’s homes are the communities they live in. We are committed to keeping our town centres vibrant. We are changing the business rate system to give small retailers a bigger discount on their rates, as well as extending the discount to cinemas and music venues, and, importantly, introducing additional discounts to pubs. We will conduct a fundamental review of business rates and we will increase the frequency of business rates revaluations.

It is the Government’s intention to unleash the potential of every corner of England, Wales, Scotland and Northern Ireland by bridging the productivity gap, levelling up opportunity and prosperity across the nation, and starting a skills and infrastructure revolution. We will create more Mayors across England to devolve power away from Westminster, and we will bring forward a framework for devolution and a White Paper.

I do not want to delay any further in getting straight on with the work of this challenging and ambitious agenda; an agenda that is driven by fairness and that will make a difference to more people, enabling them to look forward to a future with optimism and confidence. In Her Majesty’s Gracious Speech, we see the beginnings of a better Britain for everyone. I commend the Gracious Speech to the House.

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[Mr Davis]

I will come directly to the hon. Gentleman’s question later in my speech. He is exactly right in one respect: that is a contributory factor for productivity. But he should not look just at the past 10 years if he wants to comment about our infrastructure. The most used phrase by George Osborne when he was Chancellor was to say, while pointing at Gordon Brown, that he never mended the roof when the sun was shining. That is exactly what happened through those Labour years: profligate spending—poor spending, inadequate spending —that nevertheless did not provide the services that we needed.

Now, what has been the effect of that change in productivity? What is the size of the impact? Had productivity continued at the level it had been for the previous 60 years, had we not had the financial collapse, which happened largely under the watch of the Labour Government and the earlier Clinton Administration in the US, then wages, income and the economy would have been about 22% bigger than they are today. The tax take would have been higher, the deficit would have been easier to pay off, austerity would have been more manageable and shorter. All those things stemmed not just from the crash, but from the damage to our ability to recover from the crash as productivity was allowed to collapse. This dramatic and apparently permanent reduction in productivity has had spectacular consequences across the whole of society and the entire economy, and that is what we have to solve.

The productivity problem is a universal problem. No productivity means no progress. How do we deal with that? The answers include education, skills, training, research and investment, and of course, as the hon. Member for Weaver Vale (Mike Amesbury) rightly said, infrastructure. If we are to reset our economy and our society, we must be unflinching in our analysis and in the critique of our own past as well as those of the other parties.

[Mr Betts]

The right hon. Gentleman denigrates the efforts, policies and achievements of the previous Labour Government on productivity. Will he therefore explain why productivity went up by over 2% under that Labour Government on a consistent basis? Since 2010, however, productivity has hardly risen at all.

[Mr Davis]

Productivity had been at that level for 60 years. It is not difficult to keep things the same as they were before; the really hard thing is to smash productivity down from 2.3% to 0.5%, which is what the hon. Gentleman’s Government did.

If we are to reset the economy, let us look at what we got wrong, as well as at what Labour got wrong. Take research. The past 30 years, under Governments of all persuasions, have seen the UK decline from one the most research-intensive economies to one of the least. In the past decade, China has overtaken us, and South Korea now spends three times as much as we do. The Queen’s Speech committed to establishing the UK as a world leader in science with greater investment—so far so good. In my view, we need to do even more than that in quantitative terms. In the short term, we need to double the amount of research spend not just by the Government, but by the private sector. In the longer run, we need to treble that joint expenditure, and I stress that it should be joint expenditure. We should also address the things that we have not been so good at. It is easy to put money into genetics, artificial intelligence, self-driving cars or IT—the things we are historically world leaders in—but we should also try to ensure that that money goes where it will make a big difference by improving the things that we have not been so good at.

Historically, we have not been so good at what is called translational research. That means taking a good idea from the laboratory and making a great product, which leads to a great company, which leads to more and more jobs, more wealth creation, more tax and the rest of it. We would do well to build on some of the great institutions that we currently have. The University of Sheffield Advanced Manufacturing Research Centre, which is essentially an aviation-based operation, is doing fantastic, world-class, world-beating work. We should do similar things with the Warwick Manufacturing Group. There is a great deal of work to do to encourage those operations and build on them. Maybe we should even look to build a Massachusetts Institute of Technology of the north, because that is the sort of thing that we should be considering if we are to fix our economy.

I have some sympathy with one area of Opposition Members’ comments, which is the university underpinning of the research and the response to the Augar report. I know Philip Augar very well, and I spoke to him about his review before the report. If anything, it pulled its punches. The truth is that the university tuition fees and loans scheme invented and implemented by the Blair Government and carried on by us has failed. It has done a bad job. It has delivered poor-quality education, high levels of expectations and low levels of outcome. It has landed young people—some are now middle-aged—with liabilities for almost their entire lives, putting a cap on their aspirations. It has not delivered what it was intended to deliver, which was people paying for their component, not the public advantage component. It does not work that way. It has encouraged all sorts of perverse consequences and behaviours in our universities, so we must deal with it. I would argue to the Secretary of State for Education—I know that this is wider and much bigger than just the Department for Education—that he and his colleagues should be radical and brave.

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[Mr Clive Betts (Sheffield South East) (Lab)]

Thank you, Mr Deputy Speaker. It is good to see you in your rightful place again, in the Chair.

I make no apology for saying that I want to be a champion for local government in this Parliament. Over the past 10 years, local government has had bigger cuts than any other part of the public sector. When we come to the comprehensive spending review, it cannot simply be about rearranging the amount of money as part of some fair funding settlement; it must actually put more money into local councils so that they can deliver the services that our communities want and need.

With a time limit rule, I had thought that I would not be able to stand again as Chair of the Housing, Communities and Local Government Committee, but I understand the Government might be thinking about removing the time limit. If so, and if the House supports it, I will probably allow my name to be put forward again.

There are things in the Queen’s Speech with which I do not necessarily agree. If the Labour party were in government, I am sure we would have done things differently, but my approach to life as a Select Committee Chair was to try to find areas where we can reach agreement and encourage, prod and enthuse the Government into going further than they might want to. I will briefly mention three areas.

First, on devolution, I welcome the Government’s commitment to levelling up the powers of the Mayors of the combined authorities. I hope the Government might do more and give them all more powers, particularly on skills, training and transport. Those Departments probably have not been as enthusiastic about devolution as others have been.

I would also like the Government to address two other matters in the White Paper. Mayoral combined authorities probably should be rolled out in other areas, but devolution, if it is to work properly in this country, has to be devolution to all councils in all places, not just to those in combined authorities. I hope the Government will seriously consider that. They were going to do it with their 100% business rate retention policy, but it was dropped when we went to 75% retention.

The other key issue is: how can we allow local authorities to raise more of their own funds, rather than simply having more power to spend the money that is handed out to them? We have the most centralised system of local government funding anywhere in Europe, and that needs to change.

Secondly, the Government are offering an all-party approach to social care, which I welcome. The Housing, Communities and Local Government Committee and the Health and Social Care Committee produced a unanimous report in the last Parliament, with 22 MPs from both sides of the House recommending a social care premium and a percentage of inheritance tax as a way of funding social care. The report has been lying around for 18 months. We have a blueprint to get on with it. Germany did it 30 years ago in a cross-party, consensual way, and it has worked there, with the public generally supporting it. I hope there will be a genuine attempt by both Front Benches to reach cross-party agreement. It is on both sides to take this forward in a consensual way.

Finally, I generally welcome the promises on housing, but obviously there are big challenges. The first is the abolition of section 21 evictions. We know that evictions from private sector housing are a major cause of home- lessness in this country. The Housing, Communities and Local Government Committee’s inquiry into homelessness identified that as a problem.

Equally, if we are to abolish section 21 evictions, we need to think about how we deal with rent increases without having an overbearing rent control regime. That is a big challenge, and it might be something the Select Committee will want to consider. We recognise the good intention, but we want to know how it will be delivered in practice.

At the same time, we want to see legislation on housing courts so that there is an easier way for landlords to evict tenants who simply do not pay their rent. Landlords normally wait for the section 21 time to elapse before doing it, but if section 21 is not available, landlords need to have those powers. It is recognised in the Queen’s Speech, but we need a timetable for that to come into effect.

Another issue is how we deal with the problems of leases. Reference was made to a draft Bill at Question Time yesterday, and I think that is probably the right way forward. I know it will take a bit longer, but there are some real challenges, not about how we stop leases on new houses and deal with the unfairness of leases on new flats, but about how we tackle the problems of existing leases, including the unfairness in how some of them have been sold, the unfair service charges and the difficulties people have in buying their freehold. The Select Committee’s report recommended action on all those challenges. It is much more difficult to deal with existing leases, and a draft Bill is therefore probably the right way forward to try to make sure that we get all the nuances and the details correct. Hopefully we can also do that on a cross-party basis.

Finally, on the issue of cladding, there is a building safety Bill in the Queen’s Speech to implement the recommendations of the Grenfell inquiry and the Hackitt report, on which the Select Committee has had various hearings. There is still a challenge. The Government have put money in to deal with ACM—aluminium composite material—cladding, but there are still too many properties where, because of disputes between freeholders and leaseholders, the cladding has not been removed. The Government need to put their weight behind getting that work carried out.

The second issue to address is what to do about other forms of cladding, such as zinc cladding and high-pressure laminate cladding, which many experts believe are as dangerous as ACM cladding. Although they will not be allowed on new buildings, they are still on existing buildings. Where leaseholders have this on their homes, they often find that they cannot sell those homes and are stuck in them. That is a real problem and the Government need to undertake a more comprehensive review of that issue.

[Alison Thewliss (Glasgow Central) (SNP)]

I am glad that the hon. Gentleman is making the point about the cladding in buildings, because this issue affects some properties in my constituency too. We have different building standards in Scotland, but the UK Government’s advice note 14 is still having an impact on people’s ability to get mortgages on their properties. Does he agree that urgent action needs to be taken by the Minister on this?

[Mr Betts]

Yes, I do. People cannot sell their properties and they cannot get mortgages on them, and this whole area presents a real challenge. It is no use Ministers saying, “We don’t think this is quite as dangerous”, because the fact is that that cladding on a building means that people will not buy, and people cannot get a mortgage and are stuck. The Minister needs to act at some point on that. The freeholders have not got the money to pay for this and neither have the leaseholders, and people are stuck in unsaleable properties, which is a real difficulty for them.

[Kevin Hollinrake]

I very much hope that the hon. Gentleman does stand again to be Chair, because it has been a pleasure to serve on the Select Committee under his tutelage over the past four and a half years. He mentions not only the problems of local authority financing and their finances, but the social care premium. Does he see those two things as being correlated? The biggest issue for local authorities is the funding of social care, and if a different solution is provided for that, the financial pressure on many local authorities is relieved.

[Mr Betts]

The hon. Gentleman is absolutely right about that, although perhaps I should call him my hon. Friend for this purpose, given how we have worked together on the Select Committee. The problem with the great and rising demand for social care is that it means that there is proportionately less money to be spent on important things such as the environment, road repairs and refuse collection, the things that everybody receives from their local council. Many people then start to say, “Why am I paying my council tax? I am getting less and less for paying more and more.” That issue can be addressed by a social care premium as well.

Finally, on the cladding issue, it came to my attention over Christmas—I did a bit for the “You & Yours” programme—that the National House Building Council is refusing to pay out on a warranty for properties where the cladding put on was not the right type but it had been improperly passed by the building inspector. The NHBC said that it was not its building inspector and the warranty applied only in cases where its building inspector had done the work. That is a major loophole in people’s circumstances. When people have bought a house and got a warranty, they think that that warranty is going to cover them for defective materials. However, if that defective material was passed off by a building inspector that was not the NHBC’s inspector, as in this case, they are not covered. I hope the Secretary of State will look at that issue too. I recognise the time limit, Mr Deputy Speaker, but these are major issues that arise from the Queen’s Speech. I hope that there will be some cross-party working, perhaps through the Select Committee, that will help us move forward.

[Several hon. Members rose—]

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[Robert Jenrick]

I will consider that a Budget bid and pass it on to my right hon. Friend the Chancellor. We will certainly blend it with things such as shared ownership and reform that model to take out some abuses that we have seen in recent years.

In addition to the building safety Bill, we will bring forward another Bill on fire safety sooner than that to ensure that we act urgently on the recommendations of the judge in the Grenfell inquiry. Again, I hope that those Bills can command cross-party support. We will answer some of the questions raised by numerous Members on the position of leaseholders not only through publishing a draft Bill shortly to outlaw leasehold for new homes and to reduce ground rents to a peppercorn, but by listening to the recommendations of the Law Commission and the Competition and Markets Authority to ensure that leasehold works for everyone and is a fair and sustainable system into the future.

[Mr Betts]

Will that include proposals to help existing leaseholders as well as future leaseholders?

[Robert Jenrick]

The draft Bill we intend to publish shortly will be about the future. A second piece of legislation will follow, following the reports from the Law Commission and the CMA, which is the right way to approach the task.

My right hon. Friend the Member for Haltemprice and Howden (Mr Davis) and my hon. Friend the Member for Thirsk and Malton, among others, in different ways spoke of levelling up. It is a challenge that we have confronted as a country since the second world war and which Conservative Prime Ministers since Harold Macmillan have taken forward. It is a difficult challenge that will involve closing the productivity gaps and raising living standards sustainably across the country, with more transport investment, education and skills and full-fibre broadband. It will also mean ensuring that the benefits of Brexit are felt across the country, such as through new free ports—the proposal from my hon. Friend the Member for Ipswich is duly noted—and the £3.6 billion towns fund, which is working in over 100 communities, including the constituency of the hon. Member for St Helens North (Conor McGinn). As I said, it will not be easy, but levelling up all parts of the country and making sure that prosperity and opportunity are shared by everybody is one of the Government’s central missions.

We will also publish a devolution White Paper showing how we can spread the devolution revolution we saw under the last Conservative Government across more parts of the country: more Mayors, more combined authorities and more opportunities for local authorities that wish to reform to do so—I note the proposal from my hon. Friend the Member for Carlisle (John Stevenson)— and by doing so to earn further autonomy and control over public funds. We know that Mayors can work. In that regard, we heard from the hon. Member for Bristol South (Karin Smyth). Incidentally, we are indeed taking forward the western powerhouse, only we call it the western gateway, as it will combine parts of Wales and the west country. It has now been launched and I hope she will get behind it. There will then be routes to devolution for great metropolitan areas and for non-metropolitan areas, and we will publish those proposals shortly.

As the shadow Secretary of State said, we must ensure that local government, which provides so many important services in all our lives, is properly resourced, and that is why we are bringing forward the best settlement for local government in a decade. This includes a 4.4% real-terms funding increase, a £1 billion grant for social care and measures to place the sector on a sustainable financial footing ahead of the three-year settlement, which will come forward in the spending review and which I hope will answer some of the critical questions we have heard today, including on the future of social care. I take the shadow Secretary of State up on his offer to work on that on a cross-party basis.

In conclusion, one could not have listened to the fantastic maiden speeches today and failed to be optimistic about the future. The gridlock is broken and the country is no longer going round in circles. We have a functioning majority Government, Brexit is being delivered, and now the task for this Government is to repay the trust the public have placed in us and get on and deliver on the people’s priorities. That is exactly what we will do and what is in the Queen’s Speech. In education, in housing, in levelling up, in funding local government properly and in ensuring that public services are reformed and delivered, we will take forward the people’s priorities and get on and deliver for the people of this country.