Justice

Craig Tracey Excerpts

Tuesday 1st May 2018 Ministerial Corrections

The following is an extract from Questions to the Lord Chancellor and Secretary of State for Justice on 24 April.

[Craig Tracey]

What progress his Department is making on recruiting 2,500 new prison officers.

[Alan Mak]

What progress his Department is making on recruiting 2,500 new prison officers.

Assaults on Emergency Workers (Offences) Bill

Craig Tracey Excerpts

3rd reading: House of Commons & Report stage: House of Commons
Friday 27th April 2018 Commons Chamber

[Nigel Huddleston]

I agree completely with my hon. Friend. One challenge we face in this place is that sometimes those of us who represent the more rural areas are perceived as representing some sort of rural idyll, where there are no problems and no concerns. That is far from the case, and we need to make sure rural areas are covered adequately too.

I will not try your patience much longer, Madam Deputy Speaker. I want to say in conclusion that it is my hope and that of many others in this House that the passage of the Bill will send a clear message to emergency service workers about how deeply they are valued, and provide some reassurance that they do not need to tolerate abuse and assault while carrying out their duties. I hope too that the Bill’s passage will send a message to the public that emergency service workers are protected by legislation and that those who are violent towards them will face the full force of the law.

[Craig Tracey (North Warwickshire) (Con)]

I am delighted to speak in this debate, and I thank all Members who have contributed, particularly those who have tabled amendments. I have listened carefully, and I sympathise with many of the points that have been raised, particularly on extra support for police officers and the issue of spitting. I look forward to the Minister’s comments.

I am sure that we all agree that assault on anyone in any situation is awful, but to attack someone who is trying to help another person in an emergency is callous, heinous and totally unacceptable. Punishment for such assaults on emergency workers should fit the crime, and I believe that it is right and fair to give a judge the ability to take them into consideration as an aggravating factor in determining a sentence.

I congratulate the hon. Member for Rhondda (Chris Bryant) on introducing the Bill and add my support for amendment 3, which is a sensible addition. I also thank all the other Members who have put work into the Bill, particularly the hon. Member for Halifax (Holly Lynch). As we have heard, it takes quite a bit of work to get a Bill to this stage, and this is an important Bill.

Emergency workers are courageous and dedicated. Moreover, they are selfless in their endeavour to help people. There can be few more noble callings and no more worthwhile purpose. I see that clearly during my regular visits to the George Eliot Hospital, which serves my community in North Warwickshire and Bedworth and the surrounding area so well. I see it each time I meet local police across the constituency, never more so than recently when they responded professionally and decisively to the case of a hostage situation at a bowling alley. I have seen it when I had the pleasure to meet the North Warwickshire community first responders, volunteers ably led by Samantha Hall who give up their time because they want to help save lives. I know North Warwickshire is particularly proud of them, as am I. Samantha got married to her partner Graham a few weeks ago, and I pass on my congratulations to them, and I am sure that colleagues here today will join me in wishing them the very best for the future—[Hon. Members: “Hear, hear.”]

The responders are volunteer members of our community, trained by the ambulance service to respond to emergency calls through the 999 system. They provide immediate care to patients and are mobilised by ambulance control. They are a part of their local community, serving an area of approximately 3 miles in radius from their base, which can be their home or place of work, so they can attend the scene of a medical emergency in a very short time, often arriving within a few minutes of the call and sometimes while the caller is still on the phone.

The team are trained to provide emergency life support and to treat patients suffering from a range of conditions. On the arrival of an ambulance, they form part of the team treating the patient. It is my understanding that the Bill will protect emergency workers including volunteers such as the North Warwickshire community first responders, as they are contracted to provide a service by the NHS, but I would be grateful if clarity can be provided on that point, as they certainly deserve the additional protection that this Bill will give to emergency workers.

It is repulsive to imagine any emergency service worker being attacked in the line of duty while saving and protecting, as their name makes clear, those most in need. However, this happens on an all too regular basis across the country. I was shocked to learn that NHS staff—those who are treating sick or injured people—recorded more than 70,000 physical assaults during the year 2015-16. It is worth dwelling on that figure for a moment, as it is the equivalent of 53 assaults per 1,000 members of staff. I am sure that all right hon. and hon. Members will agree that that is 53 assaults too many.

In our prisons, officer assaults have risen by more than 30% to more than 7,000 in the past year. However, I am encouraged by the fact that the Government are taking action to increase the number of prison officers. They have recruited 3,100 new officers, many of whom will be in place by the summer, which will help to reduce the figure. None the less, I can see the sense in new clauses 4 and 9 in providing greater protection for prison officers. As I said, I look forward to hearing the Minister’s response on that.

The Police Federation states that the latest welfare survey data

“suggest that there were potentially more than two million…unarmed physical assaults on officers over a 12 month period, and a further 302,842 assaults using a deadly weapon during the same period.”

It estimates that an assault on a police officer happens every four minutes. Those statistics are shocking and make it clear that action needs to be taken.

This crucial change in the law will send a clear message that attacks on emergency workers will not be tolerated. I welcome the cross-party work that is being done to ensure that those who are violent face the full force of the law. I draw parallels here with our armed forces, and I have previously said in this House that, to enable them to do their job and, more importantly, to give them our backing, we cannot allow spurious legal cases to linger in their minds, as that can reduce recruitment, morale and retention, and, critically, prevent them from doing the job that they have been so highly trained to do.

Similarly, we must guarantee that our emergency workers—those who are in the frontline of responding to life or death situations, or upholding the law—have full protection while carrying out their duties. Those personnel, from ambulance paramedics who are first on the scene to dedicated nurses who care for the sick and firefighters who run into burning buildings, have called for greater protection, and it is right that we deliver it for them. In February 2017, the Police Federation’s campaign “Protect the Protectors” called for a change in legislation leading to tougher sentences for those who assault emergency service workers and more welfare support.

As I said at the start of my remarks, there is no excuse for assault of any kind, but an assault on an emergency worker, who is acting in the line of duty, simply cannot be tolerated. Shamefully, such occurrences are not uncommon and are happening every single day while people are performing their duties in protecting and saving our constituents.

This Bill may not deter every criminal from assaulting an emergency worker who is carrying out their duty, but the new offence will provide increased protection under the law for emergency workers who are assaulted in the course of their day-to-day work. Encouragingly, that increased protection will also extend to situations where an emergency worker is not at work, but is acting as if he or she were—for example, when an off-duty firefighter rescues someone from a burning building. I warmly support the reasoning behind the Bill and the improvements that it will bring in protecting those who dedicate their careers and lives to helping and protecting us.

[Michelle Donelan (Chippenham) (Con)]

It is a delight to follow my hon. Friend the Member for North Warwickshire (Craig Tracey). I echo the gratitude that has been expressed to the hon. Members for Rhondda (Chris Bryant) and for Halifax (Holly Lynch) for all their sterling work on the Bill and their work with the Government to get us here today, and I hope that the whole House will support them.

I support the Bill, and I also support amendment 3 in particular, which I will talk about later. I also echo the support of some Members for the sentiment expressed my hon. Friend the Member for Shipley (Philip Davies). He raised some very good points regarding automatic release, but that is a broader debate that we should have in a wider realm, as it would have many ramifications. We should look at that matter separately, rather than diluting and potentially destroying the Bill. Without these amendments and new clauses, the Bill will send a strong message to emergency workers that the actions we are discussing will not be tolerated, and it will give prosecutors powerful tools. That is the message that has come from the emergency workers across my own constituency. They have spoken to me about their own ordeals and about how they recognise the importance of our passing the Bill today.

It is true that attacking a person serving the public is already an aggravating factor in sentencing guidelines, but this Bill will put on a statutory basis a specific requirement to consider assault on emergency workers as aggravated. We have heard many stories today in the Chamber of heroes and heroines whose brave acts to protect us have basically been a part of their everyday jobs and lives, yet they have faced assaults for simply trying to do their job of helping others. That has happened in the Chippenham constituency, but it also happens up and down the country every year. It is only right that we stand up for our emergency service workers in the way they stand up for us. I hope that the Bill will help us to do that. The fact that it has cross-party support sends a message to emergency workers that we are supporting them and standing up for them. It is time for us to protect the protectors—a phrase used throughout the debate today—and ensure that they have the full protection of the law in carrying out their duties. The Police Federation used that apt phrase when it launched its own campaign.

Oral Answers to Questions

Craig Tracey Excerpts

Tuesday 24th April 2018 Commons Chamber

[Rory Stewart]

This is a long-standing issue—it was true even in 2008-09—that consistently, the judiciary and magistrates have expressed concerns about community sentences. We need to do much more to build confidence, but the fact that this has been going on for nearly 10 years shows that it is a very challenging thing to do. Training will be an important part of that.

[Craig Tracey (North Warwickshire) (Con)]

3. What progress his Department is making on recruiting 2,500 new prison officers.

[Alan Mak (Havant) (Con)]

6. What progress his Department is making on recruiting 2,500 new prison officers.

[The Lord Chancellor and Secretary of State for Justice (Mr David Gauke)]

Retaining and recruiting engaged and motivated staff is critical to delivering the solutions to drive improvement across the service. Between the end of October 2016 and the end of March 2018, we have increased prison officer numbers by 3,111 full-time equivalent staff. This is already significantly over our target of 2,500 additional staff by the end of December 2018. Investing in the frontline is vital for safety, rehabilitation and security, which is why we are spending £100 million a year in additional prison officers.[Official Report, 1 May 2018, Vol. 640, c. 1MC.]

[Craig Tracey]

I thank my right hon. Friend for that answer and commend him for the work that he has done on recruitment. Can he confirm when we can expect to see the new officers on the landings?

[Mr Gauke]

I can tell my hon. Friend that 90% of the 3,111 will be on the landings by the summer, and all will be in place and operational by the end of the year.

Oral Answers to Questions

Craig Tracey Excerpts

Tuesday 25th April 2017 Commons Chamber

[Elizabeth Truss]

I am very sympathetic to the hon. Lady’s concerns and I offer my sympathy to her constituents. We are supportive of local historical investigations, but we are not planning to order an historical inquiry in Hull or elsewhere. Hull has made significant improvements, including putting in place measures to improve practices and communication between the cremation authority, local funeral directors and NHS trusts.

[Craig Tracey (North Warwickshire) (Con)]

T2. Following the important work done by the parents of my constituent Sean Morley, who was tragically killed in a hit-and-run incident in Bedworth, and the representations that I have made to the Secretary of State, will she confirm whether she intends to see through the progress that has been made towards much tougher sentences for dangerous drivers in the next Parliament, should the Conservatives be returned to government?

[The Parliamentary Under-Secretary of State for Justice (Mr Sam Gyimah)]

If the Conservatives are returned to government we will, of course, look to see through these vital reforms.

Prisons and Courts Bill (Second sitting)

Craig Tracey Excerpts

Committee Debate: 2nd Sitting: House of Commons
Tuesday 28th March 2017 Public Bill Committees

[Richard Burgon]

Q Finally, I would like to ask each of the panel members, starting with Brett, why, in your opinion, the Government do not seek to better regulate claims management companies, which unlike solicitors are free to cold call potential customers?

Brett Dixon: In my opinion, the Bill is a missed opportunity to deal with the real drivers of these types of claims, and that is claims management companies. I can see the argument that, in some respects, if you do not regulate claims management companies—which we would firmly support—and you do not ban pre-medical offers and cold calling, you are creating a circumstance where someone who does not have a genuine claim might see this as a one-way bet. By that I mean that you might be encouraged by a claims management company to make a claim. I am told that insurers make pre-med offers without any medical evidence and you can, in effect, make it up and not be able to be called to account, because you can stop before there is medical evidence. If you take rogue claims management companies out of the equation and ban this insurance-led practice of making pre-med offers then I think you deal with most of the problems in the sector that we are hoping to deal with through the Bill and maintain the position of the genuine claimant who wants access to justice.

[Craig Tracey (North Warwickshire) (Con)]

Q I shall start with you, Mr Dalton. Obviously, the Government are keen to get a definition of whiplash in the Bill, and I think it will be key to this being successful that we get that definition right. Does the current framework definition hit all the right spots, or should we be looking at something else?

James Dalton: This is a critical point. Clause 61 defines whiplash: we have some significant concerns, which go to my earlier comment that the definition does not adequately include cover for back injuries: it includes neck and upper torso but does not include back. We think that is a really important part of the jigsaw that needs to be included within this legislative framework, so that you capture the right type of claims. The risk if you do not do that is that whiplash injuries will become back injuries and they are not covered by this legislation.

Rob Townend: I have the same answer, really. We do not want to see a loophole where back is excluded and you end up with two systems, one for neck and upper torso and one for back. It adds complexity and reduces the number of claims that are caught by the legislation by about 60%.

Brett Dixon: Clause 61, particularly clause 61(1), does contain provisions for further regulations. I think it is important to understand what is intended in the regulations and how that would interact with it. I sound one note of caution as a practitioner: it would be within the realms of a medic or a medical expert to define what whiplash is. If you were to ask a medic, or you were to ask a lawyer to give a go at what a medic would say, they would say it is soft tissue injury to the upper torso and neck that has been caused by hyperextension or hyperflexion. The mechanism is as important: some thought needs to be given to involving a medic in the way that regulations are drafted. That is the most important point.

[Craig Tracey]

Q What about the MedCo definition?

Brett Dixon: The MedCo definition is something of a work in progress in many respects. There is a definition there that has been imported into the civil procedure rules and this draws in part from it. Just because it exists in the civil procedure rules and is used for MedCo does not mean that this is either a good starting point or the way to go. This is an opportunity to define it properly by using and involving medics.

[Craig Tracey]

Q What are the consequences to insurers if you get the definition wrong, in terms of additional cost? Has there been any analysis of how much more that will cost insurers?

Rob Townend: You will see displacement of claims from purely neck injuries to back injuries. The analysis we have done suggests that 60% of the claims that are currently wrapped under small soft tissue injuries will drop out. Without the displacement impact, where people will claim, I think it gives a loophole for fraudsters and I do not think it will help to reduce nuisance calls.

[Craig Tracey]

Any other thoughts?

James Dalton: No. I think the revised regulatory impact assessment from the Ministry will be extremely important for understanding the extent to which this definition will deliver the Government’s anticipated savings. Because I do not think it will, for the reasons I have already explained. So if we do stick with this definition, the regulatory impact assessment should show that.

[Craig Tracey]

Q That brings me to the cost. We have already said that Aviva has said that it will pass on the cost, as have other insurers. It was based on a £40 figure, wilfully, at the time, but I think that figure was based on the complete removal of soft tissue injuries. Has there been a re-evaluation of likely cost? What is the impact on other things such as insurance premium tax rises and discount rate changes, which we will obviously see? You can pass on a saving but that does not necessarily mean a lower cost.

Rob Townend: Let me deal with the exclusion of back, which has the biggest impact in terms of how the definition is written. Having a tariff instead of removing damages in its totality has a smaller impact. I think our analysis—we can share it properly with the Committee—was £4 or £5. So the bigger impact is in the reduction of back. The second part of the question was—

[Craig Tracey]

It was around other impacts such as IPT rises.

Rob Townend: The environment around motor pricing at the moment is really dynamic. IPT has been going up and the discount rate has significant impact on premiums for larger injuries. Adding these together, the opportunity to offset premium increases with a reduction in the cost of whiplash claims would be beneficial to consumers.

James Dalton: We have been very public about our view that the decision to reduce the discount rate to the extent that it has been reduced is absurd. There is a very important need to reform the system and we look forward to seeing the Government’s consultation on that in due course. Inevitably that has already led to increased car insurance premiums and an increase in the insurance premium tax. This makes it even more important to progress these reforms in order that premiums will not go up as much as they would were you not to proceed with these changes.

It comes back to the society question: do you want to live in a society where you have a claims culture and compensation system that drives the sort of behaviours that Rob Townend was describing earlier. I think the answer that most consumers give to us is that they are sick and tired of the cold calling and the text messages. This is the system that drives them.

[Nick Thomas-Symonds]

Q I have two points, Mr Brady, and the first is to Brett Dixon. The small claims track limit of £1,000 has been there since 1999. If you increased it by the same rate as the consumer prices index, you would end up with just under £1,500. If you increased it by the same rate as the retail prices index, you would end up with just under £1,600. Do you think there is any justification for going to £2,000 in most cases and £5,000 in whiplash cases?

Brett Dixon: I do not think there is any justification for it, to be perfectly frank with you. The use of a small claims track system is to identify those claims that somebody can deal with on their own, rather than it being about a monetary value. If you introduce changes to the small claims track at the same time as altering the court system to provide hearings at a distance—video evidence—you are going to make it incredibly difficult for a litigant in person to deal with and understand all those issues on their own.

Remember, the defendant who has paid an insurance premium has a right to call on those insurers to provide them with legal representation. I always think of it as being the person in the dentist’s chair on their own—that is what you would be as a litigant in person against well-represented opponents. I think that there is no justification, either monetarily as you have put it, or on the basis of the purpose of a small claims track.

Prisons and Courts Bill (First sitting)

Craig Tracey Excerpts

Committee Debate: 1st Sitting: House of Commons
Tuesday 28th March 2017 Public Bill Committees

[Robert Jenrick (Newark) (Con)]

May I also declare an interest? I am a solicitor, not currently practising, and a prison visitor at HMP Lowdham Grange in my constituency.

[Craig Tracey (North Warwickshire) (Con)]

I chair the all-party group on insurance and financial services and was an insurance broker for 25 years.

[The Chair]

I am afraid that brings us to the end of the time allotted for the Committee. I thank the witnesses on behalf of the Committee for their evidence.

Ordered, That further consideration be now adjourned. —(Guy Opperman.)

Access to Justice

Craig Tracey Excerpts

Wednesday 11th January 2017 Westminster Hall

[Craig Tracey (North Warwickshire) (Con)]

It is a pleasure to serve under your chairmanship, Mr Davies. I will speak about reforming the soft tissue claims process. I have a special interest in the subject: I am chairman of the all-party group on insurance and financial services, and I spent 25 years as an insurance broker, 20 of those running my own business, so it is fair to say I have seen the evolution of these claims. When I first started in the industry, whiplash or soft tissue injury claims were non-existent, but over time they have grown to be a significant industry which, as we have heard, costs motorists anywhere between £40 and £90 extra on their policy. Critically, it is an industry where in many instances the claimant is not the main beneficiary.

Although the amounts of compensation paid out in soft tissue claims are relatively small, the associated claims handling costs, including the costs of investigation, processing, lawyers’ fees and medical reports, are disproportionately large. For example, a claimant claiming about £1,000 may ultimately cost the insurer two or three times that amount. As such claims are pretty common—there are about 800,000 a year—the effect on motor insurance premiums is significant.

I will focus on two key areas of the reform proposals, the first of which is general damages. It is clear that the reforms in the Legal Aid, Sentencing and Punishment of Offenders Act 2012 have not had the desired effect of tackling the compensation culture. They went some way to tackling issues such as referral fees, but frequency of claims has not been tackled as claimants can still enter into a no win, no fee agreement and a substantial portion of their claim is taken by the lawyer or claims management company to cover legal fees, so claimants sometimes get only half of the amount awarded to them. Is it access to justice when somebody else benefits more than the person who was injured in the first place?

To highlight the scale, although it is fair to say that the number of claims described as whiplash registered with the DWP’s compensation recovery unit has decreased, as mentioned by the hon. Member for Wolverhampton South West (Rob Marris), that is coupled with a corresponding dramatic increase in the number of soft tissue injury claims for neck and back injuries. In 2015-16, the number of road traffic accident soft tissue injury claims rose by 5.8% from the pre-LASPO level of 2012-13. However, in the period before LASPO was introduced, there was a particularly high volume of claims as claimant lawyers rushed to submit claims to avoid the reforms. This can be seen when looking at the total number of soft tissue injury claims in 2013-14, with the total number of claims in 2015-16 decreasing by only 0.3% over the previous two years, and in fact increasing by 1.2% from the previous year.

The claims portal, which is used to process low value personal injury claims in road traffic accidents, demonstrates even more clearly the rising number of claims following the LASPO reforms. On the portal, although the number of claims notified decreased by 3% from the pre-LASPO high in 2012-13 to 2015-16, the number of claims notified actually increased by 11% in the two-year period of 2013-14 and 2015-16. It highlights how the number of people claiming whiplash injuries in 2011-12 was 543,899 and the number of people who had neck, back and soft tissue injuries in the same period was 285,000. The number of people claiming neck, back and soft tissue injuries increased to 441,000 in the period 2015-16, so we can see it has been displaced.

My second point relates to the small claims track. The threshold needs to increase for whiplash, as the current limit has not been increased for 25 years. Figures from the ABI show that in 1991 50% of claims would have been valued within the SCT limit. That dropped to 9% in 2012, which highlights that an increase is well overdue as 91% of pain, suffering and loss of amenity claims now fall outside its remit, which cannot be in the best interests of the consumer.

From my discussions with the insurance industry, it is clear to me that it supports the principle that full compensation should be given for more serious injuries, and it is committed to simplifying and streamlining the process so that savings will be passed on to the consumer and the policyholder. Critically, there will be access to justice for everyone. Claimants with more minor injuries will still get their vehicle repaired, there will still be access to loss of earnings compensation and, rightly, there will be a focus on rehabilitation. Having dealt with such injuries for many years, that is what most people want. They want to be back in the position they were in before the claim. It is right to ask why there should be a link to a cash settlement on top of this when many of the minor injuries that we are talking about are similar to those sustained on sports pitches around the country day in, day out, where no one would give a second thought to making a claim against an opponent.

The UK is still one of the safest places to drive in the EU and vehicles are safer, so it is important that we go ahead with the proposals made in the former Chancellor’s autumn statement.

Oral Answers to Questions

Craig Tracey Excerpts

Tuesday 6th December 2016 Commons Chamber

[Elizabeth Truss]

I thank the hon. Gentleman for his question. We are being very specific about what we are asking governors to achieve in raising education standards, getting prisoners into apprenticeships and work, and improving health standards. We are specifying the what, but giving governors much more freedom over the how, because they are the people with the expertise. The officers on the landing are the ones who talk to the prisoners, and they need that freedom to be able to turn people’s lives around.

[Craig Tracey (North Warwickshire) (Con)]

6. What progress the Government have made on the sentencing review of motoring offences and penalties relating to dangerous drivers.

[The Parliamentary Under-Secretary of State for Justice (Mr Sam Gyimah)]

The Government yesterday issued a consultation paper following a review of driving offences and penalties. The consultation focuses on the driving offences that result in death or serious injury and proposes that the courts should be able to impose a life sentence, or longer determinate sentences, in the most serious cases.

[Craig Tracey]

I welcome the consultation. Does the Minister agree that it presents the perfect opportunity to close a loophole whereby in the event of a pedestrian being hit by a driver under the influence of alcohol or drugs, as happened to my constituent Sean Morley, who was tragically killed as a result, the maximum sentence available for failing to stop and report is just six months, leaving no incentive for the driver to stay around? In Sean’s case, the Crown Prosecution Service and the judge had only the charge of failing to stop available to them, not death by dangerous driving.

[Mr Gyimah]

The case to which my hon. Friend refers is truly horrific, and I extend my personal sympathies to Sean Morley’s family. Nothing can compensate for the loss of a loved one by a killer driver who drives irresponsibly. I encourage the family to contribute to the consultation so that we can take their points on board.

Road Safety: Sentencing Review

Craig Tracey Excerpts

Wednesday 30th November 2016 Westminster Hall

[Susan Elan Jones]

It is again a pleasure to serve under your chairmanship, Mr Bailey.

In January 2014, I raised the issue of the need for a sentencing review for maximum penalties for driving offences that lead to death or serious injury. Many Members of Parliament stood with me and explained why the issue mattered to their constituents and why the review is so desperately needed.

Let me begin by talking about why this issue matters so much to me and my constituency. In the village of Overton in my constituency, a nine-year-old boy was tragically killed in 2009 while crossing the road. The driver who so carelessly mowed young Robert down was unlicensed and uninsured. He hit Robert, took his life and then drove away. He did not stop to help and did not report the accident. He resprayed his car to hide the evidence, attempting to cover up his crime. The driver who took Robert’s life incurred a pitiful sentence of 22 months, yet that was the very limit of what was possible under the law for that offence. That man hit a young boy and took his life, and after driving away and leaving that child to die he was sentenced to a grand total of 22 months and a four-year driving ban.

[Craig Tracey (North Warwickshire) (Con)]

My constituent, Sean Morley, was similarly knocked over and left to die by a driver who left the scene. Does the hon. Lady agree that the sentence needs to reflect the severity of the crime? Currently, it is prosecuted under hit and run, so people get the same sentence that they would have got if they had knocked off a wing mirror.

International Women’s Day 2016

Craig Tracey Excerpts

Tuesday 8th March 2016 Commons Chamber

[Craig Tracey (North Warwickshire) (Con)]

I congratulate my hon. Friend the Member for Eastleigh (Mims Davies) on securing this important debate. I am delighted to speak today as chair of the all-party group on women and enterprise. I really enjoy that role, although I have to admit that when I was first asked whether I would carry it out, I was worried that someone had misread my name and put it back to front. Thankfully, that was not the case and it is now my pleasure, through the APPG, to work with a talented group of inspiring female entrepreneurs from across a range of different backgrounds and business sectors. I want to focus on one of the key aims of our APPG, which is to encourage aspiration and entrepreneurship among women of all ages, but particularly young women.

[Amanda Milling (Cannock Chase) (Con)]

Does my hon. Friend agree that Young Enterprise represents an excellent way of inspiring teenage girls to consider becoming entrepreneurs and business women in the future?

[Craig Tracey]

My hon. Friend is absolutely right. It was good that she raised that point in Prime Minister’s Question Time last week.

There is overwhelming evidence that harnessing female entrepreneurship can only be positive for our economy. Indeed, a report that was published in 2013 calculated that boosting female entrepreneurship could deliver approximately £60 billion extra to the UK economy. We also know that women bring a diversity dividend, whereby gender-balanced boards are more successful on every measure, according to a study by McKinsey & Co.

We are making good progress, but we still lag someway behind the USA, where women are twice as likely to be entrepreneurially active as UK women, although the rates for men in both countries are the same. In 1988, the USA put in place a women’s business Act, which introduced long-term infrastructure measures, such as the women’s business centre programme, and created the National Women’s Business Council. It is no coincidence that since those initiatives went live, over 30% of US enterprises have been female-owned. I ask Ministers to look carefully at such models to determine what lessons can be learned.

Evidence suggests that one of the biggest barriers to women starting their own business is a fear of failure. Studies often say that female entrepreneurs are held back by risk aversion and low confidence. In fact, it is not necessarily a lack of self-confidence, but an informed assessment of how prepared they feel to embark on the all-important first step. That is backed up by the fact that women who have undergone some form of enterprise training are twice as likely to be engaged in entrepreneurial activity, with specific female-focused business support being vital to greatly encouraging participation.

With that in mind, it is imperative that we offer our potential female entrepreneurs the best possible chance to achieve by giving them effective information, advice and guidance in schools. Schemes such as the Careers & Enterprise Company are a welcome addition and provide an excellent opportunity to plug an all-too-evident hole in our current careers advisory process. That alone is not enough, however, so we need to encourage more female role models and entrepreneurs into our schools, colleges and universities. A big step forward in that respect would be for senior women in business and politics to engage practically with their local students—to tell them their story, which would undoubtedly not have been all plain sailing, and, in essence, to inspire and support a new generation of female entrepreneurs.

We are in an exciting place in our history. We understand more than ever what we can do to support, nurture and encourage female enterprise. With the right long-term strategy from the Government, in partnership with our current entrepreneurs, the goal of equality and parity in business is a lot closer than we might think. I look forward to playing my part, through the all-party group, to help to make that happen.