Amendment of the Law

Debate between Edward Leigh and Vince Cable

Thursday 19th March 2015 Commons Chamber

[Vince Cable]

The hon. Gentleman is absolutely right. Indeed, UKTI’s work these days concentrates on supporting SMEs. As a country, we underperform on the contribution of the SME sector to exports, compared with countries such as Germany, and that is the focus of UKTI’s work. I would also emphasise his other point on the need to build up our relationship with China. We have worked very hard on that, and the Prime Minister and the Chancellor have led from the front on our relations with China, which are good. The establishment of the new financial institution, in which Britain is a co-investor, is a signal of the importance we attach to our relations with China, and that will continue.

[Sir Edward Leigh]

My right hon. Friend is making a very thoughtful speech, in marked contrast to that of the shadow Chancellor, who was more Henry VI than Henry V. Will he comment on the staggering paucity of the cuts the shadow Chancellor will make? They appear to have been dreamed up on the back of a plain-packaged fag packet. How will the shadow Chancellor get rid of the deficit just by abolishing police and crime commissioners and by not opening a few more free schools? I still do not understand how he is going to solve the problem of the deficit.

[Vince Cable]

The hon. Gentleman is absolutely right. I thought it might be useful to take one element of the Opposition’s policies to see how utterly incoherent it is. I want to home in on the particular issue of how they would fund a reduction in tuition fees. To be frank, this is a tricky subject for all parties. All parties, including the Labour party, have gone back on their commitments. My party has done so, and I know that the Conservatives had some embarrassment in 2005. I would have thought that common sense suggested we ought to draw a line under this episode. I know from the feedback I get from the shadow Cabinet that the shadow Chancellor has been a voice of sanity in this debate, but his leader has not listened to him. Clearly, I am parti pris on this matter, but let me read a comment made yesterday by a man who describes himself as having been

“responsible for delivery in Downing Street under Tony Blair”.

I am not sure that I would want that on my CV, but he is very happy about it. Referring specifically to this proposal, he said:

“The result would be to spend almost £3bn to subsidise high earners of the future. The present system is attracting more students than ever, especially from low-income families. In 2004, before fees were introduced”—

by the previous Government—

“14 per cent of the lowest socio-economic fifth…went to university; last year 21 per cent did. Labour’s proposal therefore offers not ‘more for less’ but ‘less for more’.”

The position is actually worse than that, because we do not understand how it will all be paid for. A £2.6 billion gap needs to be filled to pay for the cap. The original idea was that there would be some kind of granny tax, with grannies paying extra into their pensions. That comes down to the proposal about the pension pot. The proposals that the Chancellor made yesterday diminished considerably the resource available from that source, so where will the money come from? Even if the Labour party can identify where the money will come from, how can it guarantee to universities that the money will get from the grannies to the Treasury to the universities? How exactly will that be sustained in the years ahead?

This is not just a debating point; these issues really matter. The feedback that we are getting from universities is that they have stopped investing because there is a political risk—although it may not be high—of a Labour Government. Universities have stopped investing and are having to fall back on their reserves. Some universities, such as Cambridge, have said that if this policy were to happen, they would drastically reduce the number of students they admitted and cut back on their supervision. The quality of education would suffer.

It requires a particular kind of genius to dream up a proposal of such transcendental stupidity. I was going to ask the person responsible to stand up and tell us what it is all about, but the shadow universities Minister is not here. He is the same guy who left the note saying that there was no money left. What he is now proposing is that universities should experience precisely the same treatment.

Amendment of the Law

Debate between Edward Leigh and Vince Cable

Thursday 20th March 2014 Commons Chamber

[Vince Cable]

It does, but the figures produced over the last year suggest that long-term unemployment is falling, along with unemployment in general.

[Sir Edward Leigh]

My right hon. Friend is making an excellent speech in favour of hard work. I read in the papers yesterday—so it cannot possibly be true—that the Chief Secretary had boasted that he had personally vetoed any indexing of relief for higher-rate taxpayers. Surely my right hon. Friend, who is pro-enterprise, cannot think it right that a police sergeant is paying higher-rate tax.

Royal Mail

Debate between Edward Leigh and Vince Cable

Wednesday 10th July 2013 Commons Chamber

[Vince Cable]

There will be a combination of institutional and private investors. There will be a retail offering that can be obtained by two routes: by applying to the Government directly over the internet, and through brokers. Ownership will be widely dispersed.

[Sir Edward Leigh (Gainsborough) (Con)]

Some 20 years ago, as Post Office Minister, I tried to privatise Royal Mail. We could not get it through because of Labour intransigence. Labour Members were wrong then and they are wrong now. Has not the only result of the delay been a lack of investment and an inability on the part of this publicly owned corporation to respond to international and technological challenges?

[Vince Cable]

I know that it is tempting to blame the Labour party for a lot of things, but I seem to remember that the attempted privatisation under the hon. Gentleman’s stewardship ground to a halt because Mrs Thatcher was against it. We have moved on and circumstances are different. Indeed, this is a substantial commitment to making a real success of what the Prime Minister called a very important public service.

Oral Answers to Questions

Debate between Edward Leigh and Vince Cable

Thursday 20th December 2012 Commons Chamber

[Vince Cable]

The hon. Gentleman is right that the creative industries sector, which is crucial to the economy, depends heavily on intellectual property rights. However, we are dealing with a body of law that is extremely old—I believe that it goes back to Queen Anne. It certainly needs modification in the digital age. He is right that we need to move extremely carefully. That is why, over the last few weeks, we have been in discussions on some of the sensitive issues in relation to copying music and photography. When he studies the report in the Library, he will see that we have got the balance right between rights holders and liberalisation.

[Mr Edward Leigh (Gainsborough) (Con)]

13. What estimate he has made of the costs incurred by businesses due to regulation since May 2010.

Office for Fair Access

Debate between Edward Leigh and Vince Cable

Monday 20th February 2012 Commons Chamber

[Vince Cable]

I do not want to get into criticising universities. I have already made it very clear that they are independent bodies responsible for their own admissions policies. The access agreements that they sign will improve access—that is why those agreements are in place and that is what Professor Ebdon is there to do. I do not, as a Minister, want to lecture universities on how they admit particular students.

[Mr Edward Leigh (Gainsborough) (Con)]

After 50 years of comprehensive education, why do we have this tragedy that only 50 pupils receiving free school meals are getting into the top universities? How are we going to solve this? The Secretary of State says that he is not going to dumb down standards. Is it not a fact that the era of the greatest social mobility—the most opportunities for poor people—was when there was a grammar school in every town?

Oral Answers to Questions

Debate between Edward Leigh and Vince Cable

Thursday 8th December 2011 Commons Chamber

[Mr Edward Leigh (Gainsborough) (Con)]

19. What assessment he has made of the effect on the growth of small and medium-sized enterprises of planned reductions in the level of taxation; and if he will make a statement.

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

Many SMEs will benefit from lower corporation tax, reforms to research and development tax credits, relief of business rates, increases in employer national insurance contribution thresholds and tax advantages in the 22 new enterprise zones.

[Mr Leigh]

We already have the longest tax code in the world. Does the Secretary of State accept that what business wants are not more allowances from the Government but across-the-board tax cuts so that they can get on with running their own business in their own way?

[Vince Cable]

Many businesses, as I have just said, receive substantial tax cuts, which is absolutely right. As the economy progresses, there will be more, and there is also an exercise in tax simplification, the results of which will be announced at the beginning of next year.

Oral Answers to Questions

Debate between Edward Leigh and Vince Cable

Thursday 13th January 2011 Commons Chamber

[Vince Cable]

In relation to banking, we are looking in our discussions at how to strengthen the system in line with international practice.

[Mr Edward Leigh (Gainsborough) (Con)]

Does the Business Secretary acknowledge the contribution made to the economy by the 1 million people working in the UK financial sector, who contribute £25 billion in taxes every year, on top of the staggering £54 billion contributed to the UK economy by the financial sector. That is essential for schools and hospitals. Will he defend the sector that he is charged with promoting?