Oral Answers to Questions
Elizabeth Truss Excerpts(12 years ago)
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Chris Grayling
Once again, the right hon. Gentleman has just got it plain wrong. We are targeting this support at young people who are struggling to get into work—the long-term unemployed. I am talking mostly about those who have been out of work for more than nine months, but sometimes this will go to those who have come from the most difficult backgrounds and who have been out of work for three months. This money is targeted absolutely at where it is needed, and I believe that it will make a difference.
Elizabeth Truss (South West Norfolk) (Con)
5. What assessment he has made of the means by which universal credit will deliver funding for childcare.
The Secretary of State for Work and Pensions (Mr Iain Duncan Smith)
We have committed to invest some £2.3 billion in child care support in universal credit—that is £2 billion spent on the current system and an extra £300 million we secured in order to extend support to parents working less than 16 hours. That should give them what is really important—support in work across the hours—and it means that some 80,000 more families will get child care under universal credit.
Elizabeth Truss
In the Netherlands there is a system of agencies that train and regulate childminders. That country has twice the number of childminders per head than we do in the UK and its child care is also more affordable. Will the Secretary of State look into what happens in the Netherlands, with a view to getting better value for the universal credit money and getting more people into work as childminders?
Mr Duncan Smith
I take this opportunity to congratulate my hon. Friend on the work that she has been doing on this. She is quite right that it is an important area and it is one that I have asked my Department and the Department for Education to consider together. Under the previous Government, the number of childminders fell quite dramatically. In 1996, there were about 100,000 and in 2011 that number had fallen below 60,000. That is a huge issue. When we took over, we found that the costs of child care in the UK are about the fourth highest in the world. My hon. Friend is absolutely right that there are big issues that we need to deal with and try to resolve so that we can get more people back to work with the support that they need.
Oral Answers to Questions
Elizabeth Truss Excerpts(13 years, 3 months ago)
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Elizabeth Truss (South West Norfolk) (Con)
1. What progress he has made on contracting arrangements for the Work programme.
Jeremy Lefroy (Stafford) (Con)
10. What progress he has made on contracting arrangements for the Work programme.
The Minister of State, Department for Work and Pensions (Chris Grayling)
Happy new year, Mr Speaker. We published the full invitation to tender for the Work programme shortly before Christmas. Would-be bidders have until early February to submit their bids and we remain on track to launch the Work programme in the summer.
Elizabeth Truss
Downham Market has a community payback scheme that was initiated by volunteers. How will the community payback scheme fit with the Work programme, in which those volunteers are keen to get involved, as well as with voluntary work in my constituency?
Chris Grayling
That is an important point because many of those who go on to the Work programme will be former offenders or, in some cases, people going through community payback who are on welfare. I am in close contact with my colleagues in the Department for Justice and we are working together to try to ensure that we integrate their work on rehabilitating offenders with our work to get former offenders back into work.
Oral Answers to Questions
Elizabeth Truss Excerpts(13 years, 6 months ago)
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Elizabeth Truss (South West Norfolk) (Con)
1. What progress his Department has made towards the launch of its Work programme providing personalised assistance to those out of work.
Julian Smith (Skipton and Ripon) (Con)
3. What progress his Department has made towards the launch of its Work programme providing personalised assistance to those out of work.
The Minister of State, Department for Work and Pensions (Chris Grayling)
I am pleased to inform the House that the contracting process for the Work programme is going well. We have had more than 100 expressions of interest from would-be prime contractors. We will announce those who will be on the framework in late November and we will then move on to the next stage of contracting. All is on track to launch the Work programme in the first part of next year.
Elizabeth Truss
Is the Minister aware of the work of the Keystone Development Trust in Thetford, particularly the social enterprises it runs such as the green bikes scheme, which helps local people to get into work and gain practical skills? It is setting up a pilot that is due to be launched in November. Is the Minister willing to come and see the pilot in action?
Chris Grayling
I am delighted to hear about the work that is being done in my hon. Friend’s constituency, and when I am next in Norfolk I shall be delighted to find out more about the work being done there. Her comments underline the very important role that the voluntary sector and social enterprises play in getting people back to work. That is why we stipulated that prime contractors for the Work programme must demonstrate an ability to forge a team of specialist organisations, including social enterprises and voluntary sector bodies, that have the expertise that we need—either on a localised, geographic basis or in dealing with specific groups with a particular need—to ensure that we get people back into work. It will be a requirement of the Work programme that they have a place at the table.
Jobs and the Unemployed
Elizabeth Truss Excerpts(13 years, 9 months ago)
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Elizabeth Truss (South West Norfolk) (Con)
We have heard a lot of talk from the other side of the House about jobs and growth, but over the past 13 years we have seen illusory growth and illusory jobs that have been fuelled by public spending and paid for by unsustainable debt. Let me give an example: the National Audit Office published a report that suggested that between 2002 and 2007 the jobs created by regional development agencies cost £60,000 each. For every new job, the Government effectively spent £60,000. Such a level of public sector job creation is not the way that we will increase jobs in the long term.
There has also been a lot of talk about evidence, but if we consider the evidence of what creates growth and what creates jobs—I have looked at some international Treasury studies on this—we see that the most productive area of public spending as regards growth is infrastructure spending and the second most productive in terms of growth and jobs is education spending. That is where the Government should be focused and that is where we are rightly focused.
Mr Lammy
In the light of what the hon. Lady has just said, which was put very well, will she make representations to the Government about the closure of the Building Schools for the Future programme, which is at the centre of both education and infrastructure in this country?
Elizabeth Truss
The evidence suggests that the most productive education spending is that on the quality of teaching, not on the quality of the buildings. I am happy to discuss that further with the right hon. Gentleman, and I will do so by letter if he likes.
Moving on to the reports that demonstrate that infrastructure spending is the most effective way to spend, it is not just those in ivory towers who think that—indeed, the Library agrees—but local businesses in my constituency do, too. I asked them to give me their priorities for what the Government should do for South West Norfolk businesses. They said, “No. 1: improve the road and rail links. No. 2: get the performance up in our schools, so that we have the skills that we need locally.” That is what people say.
Gavin Shuker (Luton South) (Lab/Co-op)
In the light of what the hon. Lady has just said, will she say a few words about the cancellation of the A14 project, which is vital to her region and my region in the east of England?
Elizabeth Truss
I am in the process of making representations on the A11, which is a crucial project that would open up businesses in Norfolk. We should assess such projects—I shall come to this later in my speech—on the basis of economic return. We have a very small pot now, owing to what has happened and the money that has been spent in the past few years, and we need to use that pot wisely. I should like to see the evidence on those various roads and consider the highest rates of return. That is my answer to the hon. Gentleman’s point.
Given that businesses would like growth to be created in that way, so that they can create jobs, where have the last Government spent the money? Have they spent it on infrastructure? The World Economic Forum report suggests that Britain is sixth in terms of gross domestic product. Where do hon. Members think that we are on the infrastructure table after 13 years of Labour Government? We are thirty-fourth. That record has created the problems that we see: new jobs are not being created in the private sector because the money was not spent. Not only did the last Government fail to fix the roof while the sun was shining, they failed to fix the roads while the sun was shining, and we are left with that legacy. We are left with a difficult position. Not only are there potholes in our roads, but there is a huge hole in our budget. We must ensure that we spend on things that provide value for money.
Gordon Banks
Is the hon. Lady carrying on from where I left off and advocating significant investment in the construction industry? A simple yes or no would be good.
Elizabeth Truss
Such decisions should be based on the economic return, as I have said. That is how we should consider spending our money. The problem with the previous Government is that the money has gone on politically motivated white elephants, to gain good results in Government elections or to placate interest groups. We have not seen value for money.
Mr Edward Timpson (Crewe and Nantwich) (Con)
Is one of the other areas on which the previous Government wasted a huge amount of public money the most convoluted procurement processes for the spending of taxpayers’ money? That money should have been spent on the infrastructure that my hon. Friend has spoken about so well.
Elizabeth Truss
My hon. Friend is absolutely right. Not only was the analysis of where the money was spent incorrect, but the processes by which it was spent were cumbersome. I believe that the Building Schools for the Future process had nine stages. That has taken a lot of money that could have been used to create real jobs in our economy, by improving our infrastructure and education. I completely agree.
We have heard a lot of arguments from Opposition Members about how people would support a particular fund or a particular level of spending, but we have not seen a cost-benefit analysis. We have limited funds. We need to prove that those funds are better used on one project, such as the future jobs fund, or another project, whether that is the A14 or the A11. We have not seen such analysis. What we have heard from Opposition Members is a number of anecdotes. I do not think that anecdote is a good way to conduct government. We need to conduct government on the basis of evidence.
John Howell
Would my hon. Friend put the £13 billion spent on regional development agencies since 1999 in the same category as the white elephants that she has been describing?
Elizabeth Truss
I would. That is not to say that everything spent by RDAs was wrong. There have been many good projects. But the way it was spent and prioritised did not use Government money to its best effect. That is my point. That is why I want to see the Government assess projects on the basis of economic return, as I mentioned earlier to the hon. Member for Luton South (Gavin Shuker). I want the way in which the projects are assessed to be fully open and transparent, so that we can have a proper debate about the best way to spend our limited money.
It will be growth on the basis of real jobs and on the basis of decent infrastructure, good railways and roads, that will seal our economic future in the right direction, not pursuing the initiatives and schemes that we have seen time and again during the past 13 years, frittering away valuable money. It is our money, not the Government’s money. Ultimately, it is the money of all those in my constituency who pay taxes.
Alison McGovern
It is interesting to hear how fearful the hon. Lady is about incorrect spending on infrastructure projects and what she said about how the Labour Government wasted money. My region has seen great benefits from the improved infrastructure on the west coast main line, and we were looking forward to reconnecting the whole of our region, led by the RDA, with the Manchester rail hub. Will she call on Government Front-Bench Members to commit to those infrastructure projects? Will she acknowledge to the House that the money that was spent on infrastructure by the Labour Government was extremely helpful in resetting our national economy?
Elizabeth Truss
I am afraid that the hon. Lady’s intervention illustrates the problem with Labour Members. They present schemes, but there is no ex-post or ex-ante analysis of their economic benefits. The hon. Lady asks a question, but does not produce the evidence. Again, I would be happy to discuss that with her later, but she did not present the evidence. We must have debate. Not only are we talking about what we are putting in, we are also talking about the benefits that we get out. We need an economic policy that is based on the costs and benefits and that talks about the important areas of spending. I am pleased that the Chancellor in his Budget decided not to reduce capital spending further, but to make sure that it will go ahead so as to have a proper basis for economic growth and jobs in the future. That is the important area that we need to be looking at.
Capital Gains Tax (Rates)
Elizabeth Truss Excerpts(13 years, 10 months ago)
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Yvette Cooper
The right hon. Gentleman has not answered the question. He has not explained why he claims to help the poorest and most vulnerable, yet is cutting the benefits of those who are poorest and most vulnerable in society. Government Members like to claim that this is inevitable. This is an ideological choice that they are making. They have chosen to cut an extra £40 billion from the economy. They have chosen to cut an extra £11 billion from the value of benefits and tax credits. They have chosen to cut an extra £17 billion a year from Government Departments, and they have chosen to increase VAT. They have chosen to cut the deficit at a pace that is not only unfair and destructive to our public services but damaging to our economy.
Elizabeth Truss (South West Norfolk) (Con)
Will the right hon. Lady tell us exactly what the maximum level of housing benefit should be? Does she think it right that we are paying people more than £100,000 a year?
Yvette Cooper
No, I do not, which is why we introduced cuts in support for the highest rents as a result of the previous Budget, and set out a series of further reforms. I want to return to the point about housing benefit in a moment, because it is important.