A-level Reform

Harriett Baldwin Excerpts

Wednesday 23rd January 2013 Commons Chamber

[Mr Speaker]

Order. I live in hope that the shadow Minister, the hon. Member for Cardiff West (Kevin Brennan), will aim for a demeanour of statesmanlike reserve, which I think would suit him well if he could cultivate it.

[Harriett Baldwin (West Worcestershire) (Con)]

There are current alternatives to the A-level: the IB or international baccalaureate and the pre-U, which is being offered by a significantly increasing number of state and private schools. Does that not demonstrate that out there in the marketplace there is diminishing confidence in the A-level as a qualification?

[Elizabeth Truss]

My hon. Friend is absolutely right. It also indicates increasing competition. We are competing not just with other institutions in this country, but in the global marketplace with organisations and institutions that are developing new ideas and new qualifications all the time. There is also the online world, through which many of those things are going to become available. We need to make sure that our qualifications are keeping up at the highest level. My real fear is that if independent and other schools move towards the pre-U and our A-levels do not keep up, we really will damage social mobility.

Oral Answers to Questions

Harriett Baldwin Excerpts

Thursday 20th December 2012 Commons Chamber

[Matthew Hancock]

We are extremely proud of the sharp rise in the number of start-ups under this Government, but we want to do more and to go further. If, as the hon. Lady says, women started businesses at the same rate as men, the number would rise still more. We are helping through the new enterprise allowance. We have extended start-up loans, and some of the brilliant schemes—such as the Peter Jones academy—that help young entrepreneurs to know what it takes to start a business are already having an effect. We are making rapid progress, but I want to do much more.

[Harriett Baldwin (West Worcestershire) (Con)]

19. What recent discussions he has had with the Secretary of State for Culture, Media and Sport on the use of satellite broadband for delivering internet access in rural areas.

[The Minister for Universities and Science (Mr David Willetts)]

We see satellite broadband as an essential means to deliver faster internet access for rural communities, businesses and individuals. Everywhere in Britain can therefore access broadband via satellite. This is an issue we regularly discuss with the Department for Culture, Media and Sport.

[Harriett Baldwin]

How will the latest round of European Space Agency negotiations support the UK companies that want to deliver satellite broadband to my constituents in West Worcestershire?

[Mr Willetts]

We got an excellent outcome from the European Space Agency ministerial last month. Britain is now the leader of the ARTES 2 programme for the development of the next generation telecommunications platform. It is great to see British businesses taking a lead here, and this will increase broadband speeds and reduce costs for UK users in rural and remote areas, making satellite broadband even more accessible.

Oral Answers to Questions

Harriett Baldwin Excerpts

Thursday 8th November 2012 Commons Chamber

[Harriett Baldwin (West Worcestershire) (Con)]

6. What assessment he has made of the contribution of new start-ups to economic growth.

[The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)]

One of the main contributions is the number of jobs created. The best estimate that we have is that start-ups are responsible for a third of all jobs created. Start-up activity has remained highly resilient, with Companies House reporting over 450,000 newly registered companies in 2011-12—the highest number since 1997-98.

[Harriett Baldwin]

I am sure that the Minister will welcome this week’s CBI report showing that small and medium-sized enterprises are very optimistic about adding jobs in the year to come. However, what would he say to a start-up in my constituency, Energetic UK, which builds eco classrooms for schools? It is run by very experienced people, but because it is a start-up they do not have the three years’ annual accounts needed to get local authority contracts. I have written to him about this company and wonder what the Department could do to help.

[Michael Fallon]

Instructions to contracting authorities emphasise that the assessment of financial risk should be based on a business judgment, not on a purely mechanistic application of financial formulae such as value of turnover or three years’ accounts, which could unreasonably shut out start-up companies.

School Funding (Worcestershire)

Harriett Baldwin Excerpts

Tuesday 23rd October 2012 Westminster Hall

[Harriett Baldwin (West Worcestershire) (Con)]

It is a pleasure to speak under your chairmanship, Mr Weir. I should start by placing on record my interest in this matter as a governor and associate governor of Hallow primary school in my constituency for many years.

Worcestershire is one of the lowest-funded counties in the country for education. It is 147th out of 151 for per pupil funding and a long-standing member of the f40 group. According to the National Governors Association, the guaranteed unit of funding for pupils in Birmingham is £5,689, yet in neighbouring Worcestershire it is only £4,601—a difference of 20%. That has been going on for years. Mrs Susan Warner, head teacher of Lindridge primary school, said to me in one of the many letters that I have received on the subject:

“There is very little reasoning behind this unfair distribution and it appears to be purely historic, with no-one really understanding how the allocations were made in the first place.”

Last year, my right hon. Friend the Secretary of State signalled his intention to deal with the national unfairness of the school funding formula with “Consultation on School Funding Reform: Proposals on a Fairer Funding System”. That was welcome, but in an environment in which the overall school budget is only rising with inflation, it apparently will not be implemented this side of 2015.

In the meantime, the Department has decided to simplify the allocation formula for the direct schools grant, replacing the outdated and unfair national formula with a clearer one by reducing the number of allowable factors from 40 to a maximum of 12. The principle of a single flat amount per pupil in each stage of education from primary to sixth form makes sense. It is intuitive and, given that 80% to 85% of the cost of each school place relates to the salaries of teachers whose rates are set nationally, it makes sense to have a per pupil amount of funding that is broadly the same nationally.

[Mark Garnier (Wyre Forest) (Con)]

I congratulate my hon. Friend on securing this important and useful debate for the county of Worcestershire. She talks about the ratio of staff costs being 80% to 85%, but in Wyre Forest we see that rising as high as 95% as more experienced staff go up the internal pay scale. That puts even more pressure on schools locally to try to perform with these very limited budgets.

[Harriett Baldwin]

I thank my honourable constituency neighbour for that observation. Staff costs certainly form by far the largest part of a school budget. It makes sense to have money follow the pupil, as that gives a clear signal to schools that they will do better if they can attract more pupils. The pupil premium, which has been welcomed at £600 per pupil on free school meals, will be even more welcome in Worcestershire when it is increased from 2013 by 50% and set at £900 per pupil. As the pupil premium now links to the pupil level the concept of income deprivation, it stands to reason that the main pupil funding allocation should be set more equally at national level as well. If the pupil premium is a national amount, why should not the main per pupil amount be more equal, too?

[Neil Carmichael (Stroud) (Con)]

I thank my hon. Friend for securing this very important debate. I want simply to strengthen her case by pointing out that Gloucestershire has the same argument as her own county. We, too, are underfunded compared with, say, Bristol. That is obviously unfair, and we need a national approach to the matter.

[Harriett Baldwin]

I thank my hon. Friend for highlighting the examples in Stroud.

If, as the formula seems to do, we move closer to a per pupil amount across the county of Worcestershire without making any correction to the national unfairness, we shall run into a crucial problem. Small, mainly rural primary schools form an integral part of the fabric of county life in a dispersed constituency such as mine. Where distances are large and sparsity is high, we find that the village school is the focus and beating heart of the village. Rural schools are likely to have fewer children on free school meals, for a couple of reasons. There is a lower chance of meals being served and a much higher chance of the possible social stigma being known, and there is therefore lower take-up. Those schools thus miss out on the pupil premium, as can be seen from the fact that Worcestershire has just over 1% of the pupils on roll in England, but less than 0.75% of the pupil premium for 2012-13.

[Mr Robin Walker (Worcester) (Con)]

I congratulate my hon. Friend on securing the debate. She has made the case admirably for the small rural schools in her constituency, but she will be aware that some of the smaller schools in my constituency, which are urban schools and receive quite a lot of pupil premium, are also negatively affected by the changes. Does she agree that for the Government’s pupil premium policy to work and for their funding reforms to work really well, we need fairer funding on an underlying basis to make progress?

[Harriett Baldwin]

I do agree. How lucky my hon. Friend’s constituents are to have such a tireless champion and voice for fairer funding for Worcestershire.

Today, I ask the Minister to allow the county council to have more sector-variable lump sums that can be set locally. Some flexibility at local level is essential. Small rural primary schools are a priority for Worcestershire county council and it has a democratic mandate to take that approach. In addition, it is in its interest to do so, as travel and building costs would rise sharply if there were a consolidation of the smaller local primary schools. Furthermore, parts of Worcestershire support a middle school system, and the local authority should have some flexibility to reflect that.

I welcome the Minister’s letter of last week, confirming that there is a minimum funding guarantee extended out to 2015—a per pupil guarantee of minus 1.5%—which will help to moderate the impact of the changes up to 2015. However, Worcestershire needs more flexibility—it needs more money. More flexibility over a lump sum from the local authority could insulate small rural schools from too much fluctuation. Even after that guarantee, a school such as Eldersfield primary in my constituency would have a 5.5% fall in its budget by 2015, despite educating each child to an excellent standard for a frugal £3,523 per child.

I have so far been contacted by primary schools in the villages of Castlemorton, Martley, Broadwas, Grimley and Holt, Clifton-upon-Teme, Astley and Hallow, Great Witley, Eldersfield, Lindridge, Kempsey and Pendock, many of which have asked whether the funding formula is a deliberate attempt to close or merge village primaries and move towards a system of larger urban primary schools. Will the Minister please assure the dedicated teachers and governors and the parents of children at those rural primary schools that there is no such policy and that the value of village primary schools to their communities is fully recognised by the Government?

I hope that the Minister can also resolve the funding problem. Village schools should be considered unviable only if they do not attract pupils on a sustainable basis. Allowing local authorities, such as Worcestershire county council, to have a larger amount to use as a flexible lump sum to support those valuable schools would allow them to continue to serve the large rural areas that still make up such a large part of Worcestershire and, indeed, England.

Oral Answers to Questions

Harriett Baldwin Excerpts

Thursday 6th September 2012 Commons Chamber

[Vince Cable]

The cities Minister, who is now in the Treasury, has been discussing with me and the Secretary of State for Communities and Local Government how we will launch the second phase and the criteria that should be employed. I believe there will be an announcement very soon.

[Harriett Baldwin (West Worcestershire) (Con)]

T1. If he will make a statement on his departmental responsibilities.

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

My Department has a key role in supporting the rebalancing of the economy and supporting business to deliver growth while increasing skills and learning.

[Harriett Baldwin]

The whole new ministerial team will already be aware that Malvern is the capital of cyber-valley owing to the cluster of private cyber-security firms that are located there, close to GCHQ. Will the Minister update me and the rest of the House on the steps that the Department is taking to encourage growth in that important sector, and will he visit Malvern?

[The Minister for Universities and Science (Mr David Willetts)]

My hon. Friend is absolutely right about the strength of the cyber-cluster in Malvern. Yesterday evening we held a major conference at the Foreign Office, at which I and colleagues briefed representatives of FTSE 100 companies on the threat to cyber-security, the practical steps that they could take to ensure it and the strength of the British cyber-security industry.

Oral Answers to Questions

Harriett Baldwin Excerpts

Thursday 24th May 2012 Commons Chamber

[Mr Prisk]

I knew it was going too well. The important point is to make sure that the work force are flexible and working together. I am very happy to work with the trade unions when we are bidding for British jobs.

[Harriett Baldwin (West Worcestershire) (Con)]

4. What recent progress he has made on securing the future of the Post Office network.

[The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Norman Lamb)]

Significant progress has been made on securing the future of the post office network. In particular, Post Office Ltd has become an independent company, with its own strengthened board; signed a long-term agreement with Royal Mail, cementing their commercial relationship for the next 10 years; won new contracts from central and local government; and achieved greater network stability, with net closures of just two post offices in the year to March 2012, which is the lowest figure for 25 years.

[Harriett Baldwin]

Will the Minister congratulate villagers from Alfrick in my constituency, who have raised £60,000 in a community share offering and found 60 volunteers to reopen the community post office? However, does he agree that asking each of those 60 pillars of their community to go through a Criminal Records Bureau check is a little excessive?

[Norman Lamb]

I absolutely congratulate the villagers who have managed to achieve that. I have seen a similar story in Norfolk, and it is a fantastic community spirit that manages to achieve that. I tend to agree that asking every volunteer in the village to undergo a CRB check seems over the top.

Oral Answers to Questions

Harriett Baldwin Excerpts

Thursday 8th December 2011 Commons Chamber

[Mr Davey]

I think that my right hon. Friend already has his place in history. The right hon. Member for Leicester East (Keith Vaz) knows that the BCCI creditors have been repaid more than 85% of what they were owed at the outset of liquidation, and a final dividend—estimated to be about 3%—is expected to be paid in April or May 2012. He will also know that control of the BCCI liquidation is a matter for the liquidation committee, and ultimately the courts, not for the Secretary of State, and that the liquidators are trying to bring this long period to an end.

[Harriett Baldwin (West Worcestershire) (Con)]

7. What steps he is taking to assist unemployed people to start new businesses.

[The Minister of State, Department for Business, Innovation and Skills (Greg Clark)]

The new enterprise allowance is now available nationwide and is providing access to business mentors and financial support to help unemployed people start their own businesses. On 14 November we launched My New Business, a service on the Business Link website, providing help for everyone looking to start a new business.

[Harriett Baldwin]

As QinetiQ in my constituency has restructured, many of the brilliant brains employed there have started new businesses in a range of different areas. May I invite the Minister to Malvern to help back my campaign for phase 4 of the Malvern Hills science park as a further incubator?

[Greg Clark]

It would be a delight to visit Malvern. I know that my hon. Friend is trying—successfully, given the number of high-tech businesses there—to market Malvern as a cyber-valley. We know that silicon valley has prospered because of the links between existing high-tech firms and new ones, and I know that that is what she wants to achieve.

Oral Answers to Questions

Harriett Baldwin Excerpts

Thursday 31st March 2011 Commons Chamber

[Vince Cable]

I am doing just that. On Monday I was in Port Talbot to talk with Tata Steel about that exact question. It is absolutely right that the Government press ahead with our ambition to decarbonise the economy, but the system of tax and regulation is complex and we must structure it in a way that supports our energy-intensive industries.

[Harriett Baldwin (West Worcestershire) (Con)]

11. What steps he is taking to reduce the level of regulation of businesses.

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

We have introduced the one-in, one-out rule to stem the flow of new regulation. We have also introduced sunset clauses on new domestic regulation, stopped gold-plating EU directives and launched a consultation on tribunals. In the Budget we announced a three-year moratorium on new regulation for micro-businesses. We will shortly launch a public review of the existing stock of over 21,000 regulations.

[Harriett Baldwin]

I welcome all those measures, but spin-offs and start-ups in West Worcestershire are discovering that in order to win Government procurement contracts they need to have accounts for the past two years, and I wonder whether the Secretary of State would urgently review that.

[Vince Cable]

We are taking steps to open up public procurement for the kinds of small spin-offs the hon. Lady describes. There is, of course, an aspiration to increase public procurement from SMEs to 25%. At the beginning of the year the pre-qualification questionnaires, which were appallingly complex, were simplified, and they will shortly be removed altogether from companies trading at over £100,000.

--- Later in debate ---

[Vince Cable]

The right hon. Gentleman seems to have forgotten that those are taxpayers’ assets, the disposal of which should be done in a way that produces best value for money for the taxpayer. Some will be disposed of and sold, and some will be transferred when that will produce a good outcome. The process is being carefully worked through at departmental level, and it will produce a sensible outcome that remains supportive of local initiatives through the local enterprise partnerships.

[Harriett Baldwin (West Worcestershire) (Con)]

T5. The funding for technology innovation centres is extremely welcome. Will the Secretary of State update me on any representations he has received on a bid from Malvern to the Technology Strategy Board?

[Vince Cable]

Technology innovation centres are proving extremely welcome in the research community because they represent a bridge between academic research and business application. The first of those—the advanced manufacturing TIC—has been launched, and I went to Rotherham at its outset. Others are being prepared, and I am sure that the one in my hon. Friend’s constituency will be carefully considered by the TSB.

Schools Funding (Worcestershire)

Harriett Baldwin Excerpts

Tuesday 1st February 2011 Westminster Hall

[Karen Lumley]

Fairer funding in Worcestershire has been a long-running crusade of mine, ever since I came to the county in 2000, when we moved from Wrexham in north Wales to Redditch. At the time, both my children were happily and successfully educated in the state sector in Wales, so it came as quite a shock when we realised that their education in Worcestershire did not seem to carry the same monetary value as it did in Wales. By that, I mean there was obviously something of a funding gap between what was provided to every child in Wales and what was provided to children in Worcestershire, which was far lower. Perhaps the Minister will shed some light on that issue.

I became a governor at Vaynor first school in Redditch, where the situation was worse than I thought. The school provided a good education to our children, but without many of the necessary resources. Added to that was the competition that we faced with neighbouring authorities to attract extra staff. That was due to our lack of funds and available means compared with other schools.

Worcestershire has constantly been near the bottom of the league tables, and in 2008-09 the average funding per pupil per year in Worcestershire was £3,729 compared with £4,066 nationally. This year, it is £4,028 compared with £4,388 nationally. While £300 does not seem to make a great deal difference in this day and age, it is a significant amount when applied to each individual pupil across Worcestershire.

Locally, things are worse. As the Minister may know, Redditch is on the outskirts of Birmingham, and currently schools in Birmingham are allocated at least £700 more per pupil than Redditch. Although I understand that there are intervening factors, £700 is a huge amount of money per pupil when one considers what sports equipment, after-school clubs, arts, science or reading materials could be provided for each child.

For a school such as Vaynor first school, which has 403 pupils, the funding disparity means that about £285,000 more would go to a similar school in Birmingham. Furthermore, with our current budget of just more than £1 million, we can see just how unfair the funding gap is. Cumulatively, that money could allow the school to provide one-to-one teaching for struggling students or provide extra resources.

Of course, Redditch will benefit from the Government’s pupil premium initiative, which I welcome with open arms. I am pleased to see that the most disadvantaged pupils will receive an extra helping hand. That is especially important in Redditch where there are some deprived areas. I wholeheartedly agree with the Secretary of State for Education when he said:

“Schools should be engines of social mobility.”

We have a duty to ensure that the school system in the UK nurtures and provides for our young people to give them the best possible chances from an early age. Today, I have written to all head teachers in Redditch, asking them to contact parents to ensure that those children who are entitled to free school meals are aware of the help available.

[Harriett Baldwin (West Worcestershire) (Con)]

I congratulate my hon. Friend on securing this debate, which is so important to the future of children in Worcestershire. Does she agree that free school meals are not a good measure of deprivation in Worcestershire, particularly where rural schools no longer offer a dining room and therefore cannot offer free school meals?

[Karen Lumley]

I totally agree. We have to start somewhere, and perhaps as this Parliament progresses we will think of a fairer way of dividing the available money.

Redditch has the added problem of having been “red-flagged” by the Audit Commission on health and education issues. That is another factor for Redditch to deal with, in addition to those that I have already mentioned. The Government need to take a variety of factors into account when allocating funding, and I urge the Minister to recognise that. Some areas have slipped through the net, where funding is concerned. Although I understand that money is not the be-all and end-all, it goes a long way in sorting out some key issues.

I also realise that the solutions cannot all be provided by central Government, and neither should they be. My constituency staff in Redditch and I help out by mentoring young people from a local secondary school, which is the same school that both my children attended. We help those pupils to discuss any problems that they may have, encourage them to achieve their aspirations and offer them reassurance.

In conclusion, I am passionate about education, and I want to ensure that young people who attend school in Redditch—and indeed across the UK—get the best education that can be provided. We all know that children get only one chance, and we should help them to achieve the best they can. Although the Government are making significant improvements to our school system, we still have some way to go, mainly by ensuring that funding for schools is allocated in a fair and just way for the benefit of every child rather than according to the political jostling of central Government.

--- Later in debate ---

[The Minister of State, Department for Education (Mr Nick Gibb)]

I congratulate my hon. Friend the Member for Redditch (Karen Lumley) on securing today’s debate. I welcome the opportunity to discuss school funding issues in Worcestershire with her and my other hon. Friends. I recognise her concern about the level of school funding in Worcestershire. Despite what my hon. Friend the Member for Worcester (Mr Walker) said, I think that this is a glamorous subject to debate, and I am delighted to be doing so.

Worcestershire is one of the lowest funded authorities in the country. In funding allocations per pupil, Worcestershire is ranked 142nd out of 151 authorities, receiving, as my hon. Friend the Member for Redditch said, £4,028 per pupil compared with an average of £4,398. To put that in context, in neighbouring Birmingham, the figure is £4,790, which is £762 more per pupil, and in Tower Hamlets it is £6,792—a staggering £2,764 more per pupil per year.

I know that my hon. Friend’s concern is shared by my hon. Friend the Member for Worcester, who tabled an early-day motion last June calling for a fairer funding system for schools and raised the issue in the House at business questions last week. I also know that the F40 group, which represents many of the lower funded local authorities in England and of which Worcestershire is a member, has met my noble Friend Lord Hill and raised those issues with him. I know that all these concerns are also shared by my hon. Friends the Members for Wyre Forest (Mark Garnier) and for West Worcestershire (Harriett Baldwin).

The reason for the situation is the unfair and illogical funding system that we inherited from the previous Administration and that we are committed to reviewing. Indeed, we are doing so, as my hon. Friends will be pleased to know, with some of the finest minds in the Department for Education, who are sitting behind me—not directly behind me, but behind my hon. Friend the Member for Grantham and Stamford (Nick Boles), although he also has a fine mind and will, I am sure, contribute to the debate.

To be fair to the previous Government, they had been reviewing the system as well. The method of distributing school funding is based on a formula created in 2003. That was subsumed into the dedicated schools grant using the spend plus method, which took the funding spent by local authorities in the financial year 2005-06 and moved it forward by uplifting it by a set percentage each year for every authority and adding funding for ministerial priorities. That means that the inequalities in the system that existed in 2005-06 have been amplified by the percentage increases in subsequent years. In the words of my hon. Friend the Member for Worcester, the grant has ossified and it repeats and amplifies the unfairness. The effect is that schools facing similar challenges can receive vastly different funding. Two schools with the same needs should receive the same funding; it should not depend on an historical allocation made for a different set or a different generation of children.

Therefore, in our White Paper, “The Importance of Teaching”, we said that we would consult on developing and introducing a clear, transparent and fairer national funding formula based on the needs of pupils. We recognise that not all schools are the same and that their funding should reflect the needs and characteristics of their pupils. Worcestershire, for instance, receives funding for sparsity of nearly £2.5 million a year. However, the system no longer reflects needs adequately, depending more on what schools received in the past than on the characteristics and needs of pupils in their schools now. We want all schools to be funded transparently, so that schools and parents can see why there are differences.

We are already working with partners—such as the Local Government Association, the Association of Directors of Children’s Services, teacher and governor associations, and the Independent Academies Association—to develop options for the future funding of schools, with the aim of consulting in late spring. No doubt my hon. Friends will contribute to that consultation process. It is likely to cover the merits of a national funding formula, transitional arrangements and the factors that should be included in such a formula.

I know that my hon. Friends will be disappointed that we have not been able to go further in our first year. We inherited a perilous economic state from the previous Administration, and the Government have made it clear that deficit reduction and continuing to ensure economic recovery are the most urgent issues facing Britain. Our budget deficit in the last financial year was £156 billion—the highest among the G20 countries. The interest on the accumulated Government debt to date is £42.7 billion a year, which is significantly more than the total schools budget. Unless we take serious measures to tackle the deficit, we will face a higher cost of borrowing as capital markets demand greater compensation for the heightened risk. Ultimately, without the action that the Government are taking, we would now face an economic crisis.

As with other public services and Government spending, we have had to make difficult decisions about funding for schools. I hope that my hon. Friend the Member for Wyre Forest will understand that, given that we do debate the difficult issues that he raised in his remarks. We have had to make very difficult decisions in relation to the spending review period. In reaching those decisions, we needed to balance taking urgent action to manage the public finances with protecting the most vulnerable and recognising that education faces particular pressures.

I am pleased that we are protecting funding in the system at flat cash per pupil, before adding the new pupil premium. Flat cash per pupil means that as pupil numbers go up, the overall budget increases in line with those numbers. The pupil premium is in addition to that and will be worth £2.5 billion by 2014-15.

In that context, I hope that my hon. Friends will see this as a good settlement for schools, in the circumstances. As ever, the budget for each individual school will vary; it will depend on each school’s particular circumstances and the decisions made by local authorities and school forums about how best to allocate funds.

[Harriett Baldwin]

Will the Minister address my point about free school meals in rural constituencies, where many schools no longer offer a dining room?

[Mr Gibb]

Yes, I am happy to respond to my hon. Friend’s question. I recognise the concerns about using free school meals as a measure, but they are the only available method that can correlate deprivation at pupil level, rather than at postcode or area level, so they are the most accurate reflection of deprivation. There is quite a lot of academic evidence that free school meals accurately reflect the levels of deprivation in an area. However, we will continue to look at the issue, and we might in future include a measure of, for instance, whether pupils ever qualified for free school meals during a period of, say, six or three years. In that way, those who qualify for free school meals for just one year, then no longer qualify, will be eligible for the pupil premium.

The other thing that is happening as a consequence of policy on free school meals is that local authorities are pressing schools and parents to apply for free school meals, which they might not have done in the past. That will have a double benefit, in that more pupils will qualify for the pupil premium, as well as being able to have a meal at school.

The flat-cash settlement means, of course, that it will take time to move to the fairer funding system that I have been talking about. However, funding reform will be introduced in such a way as to minimise disruption and ensure that schools’ resources are not subject to sudden and dramatic change.

Our priority for 2011-12 is the introduction of the pupil premium. I have said before, and make no apology for repeating, that closing the attainment gap between those from the wealthiest and the poorest backgrounds is central to our education policy, and that was reflected in the speech by my hon. Friend the Member for Redditch.

Industry (Government Support)

Harriett Baldwin Excerpts

Wednesday 16th June 2010 Commons Chamber

[Harriett Baldwin (West Worcestershire) (Con)]

It is a pleasure to take part in this Opposition day debate on Government support for industry. It was a great pleasure to hear the maiden speech of my hon. Friend the Member for Bracknell (Dr Lee). I also heard the maiden speeches of the hon. Members for Bolton West (Julie Hilling) and for Wansbeck (Ian Lavery). I apologise for having to leave the Chamber, as I had been invited to tea by Mr Speaker, and that is why I sadly missed the maiden speeches of the hon. Members for Barnsley East (Michael Dugher), for North West Durham (Pat Glass) and for Middlesbrough South and East Cleveland (Tom Blenkinsop), but I look forward to reading them in Hansard. It has been delightful to hear so much about the north-east in today’s debate. In 2005, I fought Stockton North, and, as they say, Stockton North fought back. However, I do know what a delightful part of the world the north-east is.

I speak as someone who has worked in the private sector for the past two decades—my whole career thus far has been in the private sector. In those two decades, I have survived both boom and bust and all types of economic cycle. I have been through the cycle in which one hires additional people, the cycle in which, sadly, one has to let people go, the cycle in which one invests heavily in training, research and development, and the cycle in which one markets and exports products overseas, so one travels to explore overseas markets. I learned in those two decades that businesses have to be adaptable to thrive and survive. I also learned that Governments do not create wealth. Governments do not invent new products or start new businesses and cannot tell which businesses will survive or thrive. However, I strongly agree with the Secretary of State’s comments at the beginning of the debate that the Government have an important role to play.

There are signs that the Labour party is beginning to understand that Governments do not create wealth. Last week, the former Labour City Minister, Lord Myners, said:

“There was flawed thinking about job creation in the past. I found it very frustrating to sit in meetings with some of my fellow Ministers talking about creating jobs in the green economy and biotechnology. The Government cannot create jobs.”—[Official Report, House of Lords, 8 June 2010; Vol. 719, c. 625.]

Lord Myners is right. Across the world, and throughout history, economic recoveries are almost invariably led by small business creation and by the jobs created by those small businesses as they grow and become successful.

Against that background, I would like to consider Advantage West Midlands, the regional development agency that covers both my constituency and that of the shadow Secretary of State, the right hon. Member for Wolverhampton South East (Mr McFadden). I have been surveying my local businesses recently about how they perceive Advantage West Midlands. Their reactions are mixed. Some of the bigger businesses have had a very positive experience of working with the regional development agency. However, some of the smaller businesses, which the Federation of Small Businesses represents, have found it difficult to negotiate a way into the large regional organisation that is the regional development agency. As it is the small businesses that create the large part of the jobs that bring us out of recessions, it is vital that we get better at signposting that help to small businesses.

According to the annual report of Advantage West Midlands for 2008-09, which covers the worst period of the recession, its budget peaked at £330 million, which I think we would all agree is substantial. With that budget, it was able to create or safeguard 16,997 jobs. I worked that out to be approximately £20,000 per job—quite a high level of subsidy. The Labour Government cut this year’s budget of Advantage West Midlands to, I think, £270 million, and so far it has created about 4,000 jobs, but let us assume that that annualises out to about 8,000 jobs—a cost of well over £30,000 per job.

In 2008-09, the key inward investment achievement was the expansion of Deutsche Bank into Birmingham, which created 300 jobs. Perhaps my hon. Friend the Member for Bromsgrove (Sajid Javid), who is not unfamiliar with that organisation, will be able to find out whether Advantage West Midlands was the deciding variable in Deutsche Bank’s decision, or whether the expansion might have happened anyway.

Management costs and the implementation of the myriad different initiatives and programmes used a considerable proportion of Advantage West Midlands’ annual budget. The salaries of the chief executive, the director of resources, the director of operations, the director of strategy and communications, the director of economic development and the director of economic regeneration are all similar to, or higher than, that of the Prime Minister. If that management structure is replicated in all eight regional development agencies and the London Development Agency, it is likely that many of the front-line funds destined to play their role in helping business and industry are being rather diluted by the high cost of implementation.

The Government have an important role to play in helping business and industry. I believe that they should focus on the creation of excellent infrastructure, on keeping the Government’s own borrowing costs down so that interest rates remain low, and on an attractive taxation environment for both start-ups and inward investment. That is how we can compete with countries such as Singapore and Portugal, which were mentioned earlier.

[Ian Mearns]

I welcomed the hon. Lady’s comment about the number of Members from the north-east of England who had spoken today. Obviously, when it comes to our region and our regional development agency, our perspective is very different from that of many Conservative Members. As was pointed out earlier, geography is an important factor.

In the north-east, one of the magnificent benefits of the RDA has been its fantastic “Passionate People, Passionate Places” tourism regime, which has received national and international acclaim and has massively boosted the tourism industry in our region. That is vital to us, given that the nearest capital city to Tyneside, for instance, is Edinburgh, 100 miles to the north. The amount spent on tourism per head of population by the Scottish Government is significantly greater than the amount spent in the north-east of England. That is the market in which we have to compete. We are peripheral to the English economy. I welcome what the hon. Lady has said about strategy and infrastructure, because it is vital to the integrity of the regional economy.

[Harriett Baldwin]

I love visiting the north-east. I wish that the weather were a bit better for the beaches, but it is a gorgeous part of the world.

[Amber Rudd (Hastings and Rye) (Con)]

Delightful though it always is to hear about the north-east, may I add that we have a town in the south east, Hastings, which is heavily deprived? Members may not be aware that, although it has received a good deal of investment, in the past 13 years the average wage has fallen from £30 to £100 a week below the United Kingdom average. We need the private sector investment that the Government are talking about.

[Harriett Baldwin]

I thank my hon. Friend for that intervention.

I was outlining some of the other ways in which Government could help small businesses. We all agree on certain points, and I hope we can agree that the Government should concentrate on keeping regulation to a minimum. They should also concentrate on reducing the gold-plating of European legislation and confining such legislation to acceptable levels. I think we can all agree that they should spend money on education and skills. The more flexible, well trained and mobile the work force are, the more they will be able to thrive and adapt to the changing environment that we will inevitably experience in the future.

Direct spending on business and industry should happen at as local a level as possible. The regions sometimes make natural geographic sense. Sometimes they do not, so I welcome the opportunity to look at local partnerships. Local communities should be encouraged to reap the reward of businesses’ expansion as much as possible and be allowed to keep some of the increase in taxation revenues locally. I welcome some of the points that have been made along those lines in respect of the Government’s programme.

We have had to learn all over again that Labour Governments run out of money. As we rebuild Britain’s industrial and business base, we need to acknowledge the limits of Government support for industry but at the same time focus on unleashing the potential of the private sector to help us to grow our way once again to prosperity.

--- Later in debate ---

[Rachel Reeves]

I shall give way once I have finished citing these examples. Some £3.2 million that would have supported the roll-out of broadband and £2.5 million that would have helped people at risk of redundancy to get back to work are to be cut. I could continue on this, but I shall give way.

[Harriett Baldwin]

I seek clarification, because cuts were announced by the previous Government and I want to find out whether the cuts that the hon. Lady is describing were announced by them.

[Rachel Reeves]

The hon. Lady makes an important intervention, because cuts were already proposed. The hon. Member for West Suffolk asked whether Labour had any plans to reduce Government spending. I can tell him that it had, and this is one example of them. But this is in response to the—