European Union (Finance) Bill
Harriett Baldwin Excerpts(11 years ago)
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The Economic Secretary to the Treasury (Harriett Baldwin)
What a pleasure it is to see you in the Chair, Madam Deputy Speaker, and to respond on behalf of the Government to the debate on the European Union (Finance) Bill. I welcome the hon. Member for Wirral South (Alison McGovern) to her position as shadow Economic Secretary.
We have had a good-humoured debate today on this important topic. I have noticed that a large number of former university professors chose to speak in the debate. I welcome the eight new Members who made their maiden speeches during the debate. As my opposite number pointed out, they have been shrewd—they know that Thursday afternoon business on a Bill that takes up all of one page and has general cross-party support is an excellent opportunity to enjoy less stricture from Madam Deputy Speaker in respect of a time limit.
We were privileged to hear a range of maiden speeches, first from the hon. Member for East Lothian (George Kerevan), who shocked us by revealing that he already has his bus pass. He tempted us all with the information that his vegetable garden is ambitious and painted a delightful picture of East Lothian. My grandmother, Flora Maclean Macleod Morison, was born in Dunbar in his constituency, so he will forgive me if I take an entirely different view from him of our United Kingdom, but I enjoyed his maiden speech very much none the less.
We then had the pleasure of hearing from my hon. Friend the Member for Tonbridge and Malling (Tom Tugendhat), who emphasised the fact that his interest in European finance was related to the fact that his wife is French. He took us on a very interesting tour of his constituency that involved Wimbledon strawberries. He also spoke of his valuable and important tours of Iraq and Afghanistan, for which the nation is deeply grateful.
We heard from my hon. Friend the Member for South Ribble (Seema Kennedy) who, I think it is fair to say, is the first person of Iranian-Irish heritage to serve in this place. She took us back to the wars of the roses. The atmosphere seemed to get quite heated on the Conservative Benches at times during the afternoon, but my hon. Friend made a very funny speech and took us on a metaphorical open-top bus tour in a Leyland bus around South Ribble. The House was alarmed to hear that she reversed into her first constituent. We would all like to hear in her subsequent contributions what happened to that constituent. I was left worrying about what happened next.
We had an excellent speech from the hon. Member for Glenrothes (Peter Grant), who complemented the strawberries from Tonbridge and Malling with some Pimm’s from Glenrothes to add to our summer delights. We also heard from the hon. Member for Ealing Central and Acton (Dr Huq), who has been not only a university professor but, I understand, a DJ. She took us around the musical highlights of Ealing Central and Acton. She clearly knows her area extremely well from having lived there for so long, and she paid a well deserved tribute to her excellent predecessors, Angie Bray and Sir George Young. I only regret that Sir George Young’s letter to her when she was 18 failed to persuade her of the virtues of voting Conservative, but a place is reserved for her, should she ever wish to cross the Floor.
We heard a remarkable speech from my hon. Friend the new Member for Corby (Tom Pursglove), who enchanted us with his description of some of his perhaps less successful outings on the cricket pitch. I think it fair to say that he is already one of the most famous new Members, as his name has been mentioned on numerous occasions by his constituency champion, our hon. Friend the Member for Wellingborough (Mr Bone). We are delighted to meet him in the flesh. He was elected as the youngest councillor in the country in 2007, which we in Malvern Hills were slightly annoyed about, as we had only the second youngest. None the less, I congratulate him on being here so early in his life and look forward to his being here for many years to come.
We then heard from my hon. Friend the Member for Richmond (Yorks) (Rishi Sunak), who has a very tough act to follow. Not only has his predecessor left a lasting legacy in this nation’s politics by ensuring that we kept the pound and remained strong in our approach to a wide range of foreign policy issues, but he turned up at his advice surgeries in a Harrier jet—a tough act to follow indeed, but the new Member for Richmond (Yorks) clearly shares the oratory, wit and intelligence of his predecessor. I am sure that his speech today gave us the first inkling of the great contribution he will make.
Today, the House has also had a picture painted for us of a spa. What could be nicer on a Thursday afternoon in the House of Commons than to hear about the city of Bath and its place in European tourism? It was an enchanting picture of an historic and famous place. My hon. Friend the Member for Bath (Ben Howlett) shared his pride in the fact—we all agree with him on the great news—that, after 23 years, Bath is once again a blue city. He told us about the innovative and prosperous place that he represents. He, too, will be a great champion for his area in the years to come.
A stable, prosperous society is possible only if the Government spend citizens’ money wisely. We have before us a Bill that is an eloquent rebuttal to all those who claim that we cannot get a better European settlement. Back in 2013, people said we could never do something as ambitious as cutting the EU budget—it was unheard of. But we worked with our partners, we negotiated hard and we did not give in, and that work paid off handsomely. The seven-year deal we secured represents the first ever real-terms cut to the EU budget, at the same time as protecting our hard-won rebate. That is what happens when we stand our ground, fight hard against unwelcome proposals and defend the interests of the British taxpayer. That is exactly the sort of leadership that is needed in Europe.
Barbara Keeley
I want to ask the hon. Lady a question that is important for the next stage of the Bill. Does she think that “standing our ground” will be extended to what the Labour party has suggested and Labour Members have talked about today, which is cutting the CAP and funding for agriculture even further and spending more on growth and jobs? Does she think that that switch of priorities is possible?
Harriett Baldwin
The hon. Lady mentioned that earlier and I was going to get to that point in a moment, but yes, we do accept that expenditure on the CAP is still too high both in absolute terms and as a proportion of the overall budget. As she will know, this settlement reduces the amount we spend on the CAP by 13%, but as the Prime Minister said at the time of the deal, reform of EU spending is a long-term project. I will say more later in my speech.
Before I reply to points made in the debate, let me remind the House what the Bill covers and what it does not cover. It relates to the mechanism by which member states finance the EU budget. The mechanism was agreed unanimously by member states in 2014, in a Council decision that fully and accurately reflects the historic deal that the Prime Minister secured. The Bill therefore gives UK approval to that Council decision, finalising the Prime Minister’s historic deal in 2013, which the Government worked hard to achieve and which received widespread praise from both Houses as delivering a good deal for taxpayers.
The hon. Member for Worsley and Eccles South made a number of points, including on the common agricultural policy and the overall enthusiasm her party now feels for reform of the European Union. We welcome that new-found enthusiasm, but I encourage her to induct into that feeling her colleagues in the European Parliament, who play a vital role every year by scrutinising the European budget. I look forward to her being able to engage with them and ensure that there is a good deal of scrutiny, and not only on the points she raised about the common agricultural policy, but on the payment gap, because clearly the Commission has committed to publishing more frequently its analysis on payment forecasts. We welcome the greatly enhanced level of information on the budget but recognise that there is still a great deal more to do.
Barbara Keeley
It is worth saying for the record that in the latest round of CAP reforms, covering the six-year period from 2014 to 2020, Labour MEPs voted against the final outcome, because we believe that the reforms were not far-reaching enough. The Minister mentioned talking to those MEPs, but they have already voted against it.
Harriett Baldwin
As I said, I welcome the hon. Lady’s European colleagues’ new-found enthusiasm for rigour and reform in the European Union, and I look forward to working closely with them to ensure that happens.
My hon. Friend the Member for Daventry (Chris Heaton-Harris) made an excellent speech that revealed his deep knowledge of the subject. As a former MEP who sat on the Committee that scrutinised the European budget, he has been assiduous in his scrutiny of this legislation—no doubt the Whips will have noted his enthusiasm to take part when the Bill goes to Committee. He asked a range of questions about the ESA reporting and the accuracy of the EU budget. The UK agrees that more can be done to improve compliance, including simplifying the rules that member states have to comply with to release their funds. We believe that the Prime Minister’s deal on the multi-annual financial framework shows that EU spending can be improved, but that will require a strong UK voice to be heard.
George Kerevan
Again, does the Minister understand that the OBR analysis shows that in 2020 the net contributions in cash terms from the UK will be similar to what they are now? When the Prime Minister negotiated a reduction in the EU budget, it was a reduction in the global budget, not in the British contribution in cash terms.
Harriett Baldwin
I accept that the OBR has published figures that clearly show that there is a real-terms reduction in the overall envelope for the settlement period.
My hon. Friend the Member for Daventry also asked about the additional costs compared with the existing decision and any offsetting benefits. He raised a number of technical points about the VAT-based contributions, which are calculated by applying a call rate to a hypothetical harmonised VAT base—are not we glad we have him in this House, knowing all the information and all the right questions to ask on the details of the financial settlement? He also asked about the impact of the switch from ESA 95 to ESA 2010. It was taken into account in the own resources decision, but it does affect all countries’ GNI, so the effect on the contribution depends on how all countries’ GNI is revised. For the UK the key determinant of contributions is, in fact, the VAT base, thanks to our rebate, which the Labour party did not succeed in giving away fully in the early 2000s. Changes in the UK’s GNI are corrected in the rebate calculation.
The hon. Member for Luton North (Kelvin Hopkins) mentioned a number of negotiating red lines that he has, although he is in a slightly different position. He asked what are the Prime Minister’s red lines. The Prime Minister has clearly set out areas where he wants change, including reforming welfare to reduce the incentives that have encouraged such mass migration from Europe; increasing economic competitiveness to create jobs and growth for hard-working families; and protecting Britain’s interests outside the euro. They also include halting the constant flow of powers to Brussels, including by ensuring a stronger role for national Parliaments, and dealing with the concept of ever-closer union. That may be what some others want, but it is not for us.
In 2010, this Government took the tough decisions that were needed to pull this country back from the brink. We can have a stable, prosperous society only if a Government spend their citizens’ money carefully, and it is right that we took that approach to the European level of government as well.
Harriett Baldwin
I would be delighted to confirm that. When we took office in 2010, the deficit was the largest in our peacetime history, at well over 10%. It has more than halved over the past five years and will be eliminated during this Parliament.
Alison McGovern
The Minister says that the deficit has halved. Will she confirm the Government’s pledge in 2010?
Harriett Baldwin
The deficit halved—more than halved—over the course of the previous Parliament. Is the hon. Lady now arguing that she would like to have cut spending more? I have not heard that from Labour Members in this Chamber over the past five years. I have heard constant bids for more borrowing, more spending and more taxation, and nothing at all about reducing the deficit.
Alison McGovern
The Minister challenges me on what I would pledge. I did not write the Chancellor’s emergency Budget that set the Government on the wrong course. So let me ask her this: how did the pledge go to get debt falling, not rising, for most of the previous Parliament?
Harriett Baldwin
I must be living in a parallel universe. I have walked through the opposite Lobby from the hon. Lady on numerous occasions when we have taken the tough decisions on spending that we needed to take in order to clear up the mess that her mentor, Mr Gordon Brown, left behind.
In the negotiations on the European budget in 2013 we achieved real, historic change. We got a great deal for the United Kingdom, we proved that we can achieve reform in Europe, and we protected taxpayers’ interests. That historic agreement will be formalised with the passing of this Bill, and I commend it to the House.
Question put and agreed to.
Bill accordingly read a Second time.
European Union (Finance) Bill (Programme)
Motion made, and Question put forthwith (Standing Order No. 83A(7),
That the following provisions shall apply to the European Union (Finance) Bill:
Committal
(1) The Bill shall be committed to a Committee of the whole House.
Proceedings in Committee, on Consideration and Third Reading
(2) Proceedings in Committee, any proceedings on Consideration and proceedings on Third Reading shall be completed at one day’s sitting.
(3) Proceedings in Committee and any proceedings on Consideration shall (so far as not previously concluded) be brought to a conclusion one hour before the moment of interruption on the day on which those proceedings are commenced.
(4) Proceedings on Third Reading shall (so far as not previously concluded) be brought to a conclusion at the moment of interruption on that day.
(5) Standing Order No. 83B (Programming committees) shall not apply to proceedings in Committee and on Consideration and Third Reading.
Other proceedings
(6) Any other proceedings on the Bill (including any proceedings on consideration of any message from the Lords) may be programmed.—(Margot James.)
European Union (Finance) Bill (Money)
Queen’s recommendation signified.
Motion made, and Question put forthwith (Standing Order No. 52(1)(a)),
That, for the purposes of any Act resulting from the European Union (Finance) Bill, it is expedient to authorise the charging on, and payment out of, the Consolidated Fund or the National Loans Fund of any sums which, by virtue of the amendment of the European Communities Act 1972 made by that Act, fall to be charged on or paid out of either of those Funds.—(Margot James.)
Financial Services
Harriett Baldwin Excerpts(11 years ago)
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The Economic Secretary to the Treasury (Harriett Baldwin)
The Chancellor announced yesterday, following advice from the Governor of the Bank of England and N M Rothschild, the Government’s independent advisor, that the Government plans to initiate share sales of RBS in the coming months. Copies of the advice have been made available on HM Treasury’s website.
As Rothschild noted, the UK is currently in a position where alongside the United States, the taxpayer can comfortably expect to secure proceeds which exceed what they put in to overall banking sector interventions.
The Chancellor was advised that it is in the interests of the taxpayer to begin sales soon, with decisions on specific details of a sale to be made in due course.
[HCWS32]
Government's Shares in Lloyds Banking Group
Harriett Baldwin Excerpts(11 years ago)
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The Economic Secretary to the Treasury (Harriett Baldwin)
Further to the statement provided to the House on 18 December, the Chancellor announced yesterday that the trading plan to sell part of the Government’s shares in Lloyds Banking Group will be extended and will now end no later than 31 December 2015.
Under the plan, a broker has been appointed to gradually sell shares in the market over a period of time, in an orderly and measured way and in accordance with pre-agreed parameters.
The extension of the plan is a further step in returning Lloyds to the private sector and getting taxpayers’ money back. A statement will be laid before Parliament with further details at the end of the plan.
As part of its plan to return Lloyds to the private sector, the Government plan to launch a share sale which will be open to retail investors in the next 12 months. Further details will be set out in due course.
[HCWS10]
School Admissions Bill
Harriett Baldwin Excerpts(11 years, 7 months ago)
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Mr Chope
I agree with my hon. Friend, and I thank him for his intervention.
I have a great deal of respect for my hon. Friend the Member for West Worcestershire (Harriett Baldwin), who I see is sitting in the Minister’s place. I am not sure whether she is, in fact, now a schools Minister.
The Lord Commissioner of Her Majesty's Treasury (Harriett Baldwin)
Let me reassure my hon. Friend: I am not only a Minister in Her Majesty’s Government, but the Whip for the Department for Education.
Mr Chope
I am grateful to my hon. Friend for her clarification. As you will know, Madam Deputy Speaker, there is a difference between being a Whip and being a Minister. I am delighted to know that my hon. Friend, who is a very distinguished Whip, has the responsibility of being the Whip for the Department for Education. She has more credibility on the Front Bench than, for example, a Whip dealing with a different Department would have. When she responds to the debate, she will obviously be able to speak with more authority on behalf of the Secretary of State for Education, which is what I wanted to ensure would happen.
The Lord Commissioner of Her Majesty's Treasury (Harriett Baldwin)
It is a great honour for me to respond to the Bill on behalf of the Secretary of State for Education, who specifically requested that I do so. I thank my hon. Friend the Member for Christchurch (Mr Chope) for raising what is a very important issue. His constituents in Christchurch and Mudeford are fortunate to have as their MP someone who is a doughty champion of local issues on their behalf. We heard evidence of that in his opening remarks; he has already achieved a fantastic result for his constituents, Mr and Mrs Amey. I am sure they are delighted that their son, George, has been able to join his sibling at the Mudeford junior school, and I am pleased to hear that that constituency case was resolved on appeal.
I must also pay tribute to my hon. Friend for being legendary in this House for using the vehicles available to all Back Benchers in the form of private Members’ Bills to raise substantial and important issues on behalf of his constituents. Even today he has demonstrated his ingenuity in this regard by having not just this Bill on the Order Paper, but several further Bills: the Illegal Immigrants (Criminal Sanctions) Bill, whose Second Reading debate was adjourned on 24 October; the House of Lords (Maximum Membership) Bill, which he hopes will have its Second Reading today; and the EU Membership (Audit of Costs and Benefits) Bill, which is also due its Second Reading. That is just a small sample of the various different Bills on important issues he has been able to raise on behalf of his constituents through his great knowledge and understanding of parliamentary methodology.
As my hon. Friend said, the Bill before us is fairly short even by the standards of brevity we often see with private Members’ business. In its two short clauses it makes
“provision to ensure that pupils with a parent with a terminal or seriously disabling illness receive priority in the admissions process to maintained schools in England.”
The word “England” is used because my hon. Friend makes very clear in his Bill that his proposed changes would extend to England only. It is important to highlight that, as it shows how much proposed legislation, particularly on education, now comes forward that covers only England. I know he shares my enthusiasm for ensuring that we as a Parliament are in future able to ensure that those who represent English constituencies, such as Christchurch, can carry forward legislation that applies to England only.
I would like now to set out the Government’s views on the Bill before us. We believe my hon. Friend’s proposals are already covered by the existing provisions in the statutory schools admissions code and its supporting legislation. I have with me a copy of that code, published in February 2012, and I would like to draw his attention to paragraph 1.16, as it is important that we look at exactly what the code currently says. This effectively gives some discretion to local authorities but encourages them to take into account social and medical need in a situation such as the one he so eloquently described, where a particular set of circumstances needs to be taken into account.
Paragraph 1.16 of the school admissions code states that, if admission authorities decide to use social and medical need as an oversubscription criterion, they
“must set out in their arrangements the criteria against which places will be allocated at the school”.
They must state how they will define the need and give clear details of any supporting evidence that will be required, such as a letter from a doctor or social worker. They must then make consistent decisions based on the evidence provided. In the example given by my hon. Friend, I believe it would have been possible for Mr and Mrs Amey to provide that level of medical detail in order to support the case of their son, George.
As I have said, the school admissions code was published in February 2012, and the Government consulted on further, limited revisions to the code this summer. I note that one of the respondents to the consultation was my hon. Friend’s own county council. He did not respond to the consultation in person, however, and I regret to tell him that it closed on 29 September. I confess I do not have a copy of the response of Dorset county council children’s services in front of me, but evidence will be available on the Department for Education’s website. I would be happy to let my hon. Friend know what his county council’s response was, if it did not send him a copy at the time, in order to reassure him that it is engaging fully with the Department and is keen to ensure, as he is, that his constituents are able to access their preferred school.
Mr Nuttall
My hon. Friend mentioned the fact that the Government carried out a consultation on the content of a revised code between 22 July and 29 September. Given that the Bill was ordered by the House of Commons to be printed on 7 July, which I think would have been the date of its First Reading, will she tell us whether the consultation took its content into account?
Harriett Baldwin
I thank my hon. Friend for his pertinent question. I understand that the Bill received its First Reading earlier this year. One would like to think that, although the views expressed in the Bill were not formally a part of the 444 responses to the consultation, they would none the less be taken into account by the Department. I am sure that my hon. Friend the Member for Christchurch will also have sent a letter on behalf of his constituents under the previous Secretary of State. The 444 responses are listed in the back of the Government document. I looked through it earlier to see whether the Bill was included in the responses, and I can confirm that it is not specifically mentioned in the Government’s documentation. However, he has used the mechanism of this proposed legislative change to make his views known.
I can summarise the results of the consultation for my hon. Friend. They have resulted in the Government proposing specific, limited revisions to the admissions code. As I have said, 444 written responses were received by 29 September, and the Government have held discussions with interested groups. The hon. Member for Cardiff South and Penarth (Stephen Doughty) asked whether discussions had taken place with people with specific caring responsibilities. Having looked through the list of 444 responses, I note that none of the organisations stood out as the kind of organisation that he would put into that category. I can assure him, however, that discussions are ongoing with all the interested groups with a view to meeting their needs for the admission code. I hope that that answers his question.
The overriding aim of the code is to ensure that admission authorities have clear, objective and fair oversubscription criteria. It is for the authorities themselves to decide which criteria to adopt, but the code sets out the most common ones, including giving priority based on social and medical need. I have drawn the House’s attention to the fact that that is set out in paragraph 1.16 of the code.
The Government want children to be able to attend a school of their parents’ choice whenever possible but, when a school receives more applications than it has places available, we believe that those places must be allocated in accordance with the school’s published oversubscription criteria. I am pleased to say that the vast majority of parents are offered a place for their child at their preferred school. In the most recent entry year, 2014, 86.5% of parents in England were offered a place at their first preference school. In addition, 95.6% of children—so nearly 97%—were offered a place at one of their top three preferences, and 96.6% were offered a place at any of their preferred schools.
The Government have just agreed to some specific, limited revisions to the code. They are designed to improve the fair and open allocation of places and, it is worth emphasising, to support fair access for the most disadvantaged children and provide additional clarity to some provisions that had not been found to be completely clear. The limited time scale did prevent more substantial changes from being considered but, subject to parliamentary approval, which we hope is imminent, the revised code will come into force on 19 December.
Harriett Baldwin
I thank my hon. Friend for, again, being assiduous on behalf of his constituents on that drafting. He has a copy of the code in front of him, as I do. I have read the wording from paragraph 1.16 into the record, and it is my view that individual schools would have some latitude on taking into account social and medical need because of the following wording:
“If admission authorities decide to use social and medical need”.
He would like things spelt out in statutory legislation, but the wording allows admission authorities some leeway without putting things on to a statutory footing. I reassure him that we will evaluate the impact of the new proposals once they have come into effect, and will certainly do that ahead of any future revision of the code. We will examine his proposal, along with any others made as part of the process. On the question raised by my hon. Friend the Member for Bury North (Mr Nuttall), one thing that my hon. Friend the Member for Christchurch has clearly done by highlighting this issue today is ensure that the circumstances he has described so eloquently are fed into that ongoing review of the code.
The hon. Member for Cardiff South and Penarth (Stephen Doughty) touched on other aspects of the code. The code requires only that priority be given to a specific group of vulnerable people: those with a statement of special educational needs or an education, health and care plan naming the school; looked-after children; and previously looked-after children. Beyond that, the code states that admissions authorities must have their oversubscription criteria clearly, objectively and fairly set out. It is for admission authorities to decide exactly which oversubscription criteria to adopt, but the code does set out the most common criteria.
The Government believe that paragraph 1.16 is a broad provision, which can be interpreted to cover the social and medical condition of the child, the parent or both. We have no definitive data on this, but we do know anecdotally and from correspondence to the Department that a number of admission authorities do use social and medical criteria in their oversubscription criteria. At this point, I cannot say from the Dispatch Box whether Dorset county council is one of those, but I would be happy to follow this up and write to my hon. Friend the Member for Christchurch about it. We believe it is for admission authorities to decide whether to adopt these criteria and, where they do, to decide what ranking they should have, based on local needs and circumstances.
Any proposal requiring that all admissions authorities must give priority to pupils with a parent with a terminal or seriously disabling illness would require a change to the statutory code and the supporting legislation. It is not the Department’s intention at the moment to do that, other than in terms of the minor adjustments the Government have agreed to in the consultation that has just been responded to.
The overarching aim of our changes is to improve the fair and open allocation of school places. The changes are intended to provide greater freedom to schools and to clarify some of the existing provisions. For example, they allow all state-funded schools to give priority in their admission arrangements to children eligible for pupil or service pupil premium funding. In this of all weeks, it is important to emphasise the way in which the Government have tried to make it easier for the children of our armed forces to get an education in the school of their parents’ choice.
The changes also allow all admission authorities of primary schools to give priority in their admission arrangements to children eligible for the pupil or service pupil premium who attended a nursery that is part of the school. As part of that change, barriers to schools offering optional wrap-around care will be removed or reduced by ensuring that any charges paid by parents for such child care would not prevent their children from being prioritised.
The Government intend to make the following minor changes: to revise the timetable for admission arrangements; to bring forward dates for admission authorities to consult locally and to reduce the duration of such a consultation from eight weeks to just six weeks; to require the admission authorities to amend their admission arrangements to comply with the code within two months of a decision by the school’s adjudicator where the adjudicator rules that the arrangements are unlawful; to clarify the provisions relating to the admission of summer-born children to aid decision-making for admission authorities. I am sure that everyone is familiar with the particular challenges faced by children who are born towards the end of August, and the question over which year at school they should be entered. Madam Deputy Speaker, I note that you are vigorously nodding your head in agreement. I am pleased to draw your attention to that particular clarification.
Other minor changes include: extending priority for admission to all previously looked after children—I am talking about children not only who are currently being looked after but who have previously, at any time, been looked after—and making a number of minor technical drafting changes to improve the clarity of certain existing provisions. For example, we wish to make it explicit to parents that their child is entitled to a full-time place in reception.
I have run through some of the minor changes to the admissions code that the Government will bring forward. I hope that I have reassured my hon. Friend the Member for Christchurch that his case is exactly what paragraph 1.16 of the code is designed to address. I know that he has been fantastically effective at not only representing his constituents in this particular case but using the vehicle of the private Member’s Bill and the full armoury of this House to raise, on behalf of his constituents as their voice in Parliament, these important matters. Having outlined the limited changes that we propose to make to the code, which will take effect on 19 December 2014, I hope that my hon. Friend will see that the case and the circumstances of his constituents are exactly those that the code is designed to cover.
I am happy to go through some more examples that would be covered by the school admissions code. I think I have answered the questions of the hon. Member for Cardiff South and Penarth, and of my hon. Friend the Member for Christchurch.
Given the comprehensive nature of my remarks, I hope that I have convinced my hon. Friend that we do not need to move forward on a legislative basis. The extensive school admissions code, which runs to more than 38 pages, covers the situation that he described on behalf of his constituents. I therefore urge him to withdraw the motion.
Oral Answers to Questions
Harriett Baldwin Excerpts(12 years, 4 months ago)
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The Economic Secretary to the Treasury (Nicky Morgan)
I think the hon. Gentleman raised this topic in the debate on the national minimum wage. I am very happy to take this away and to have a conversation once I have had a chat with Treasury officials.
Harriett Baldwin (West Worcestershire) (Con)
T4. This time last year, the shadow Chancellor said that the economy would get worse. Can I lob the following question to the Chancellor and ask him how that prediction turned out?
Mr Osborne
The economy has grown by 2.8 % over the past four quarters, which is the point. First, when the shadow Chancellor was in office, he predicted that there would be no more boom and bust—we had the biggest boom and the biggest bust—and secondly, he predicted that there would be no recovery unless we borrowed and spent our way into economic risk, which has turned out to be untrue. I do not know why anybody in the Labour party still listens to his predictions at all.
Banking
Harriett Baldwin Excerpts(12 years, 4 months ago)
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Harriett Baldwin (West Worcestershire) (Con)
It is reported today that the Opposition are proposing specific market shares on specific banks. Has that ever been tried in any other country?
Sajid Javid
My hon. Friend is right. It is reported that, this Friday, the Leader of the Opposition will make a speech on the economy and attempt to set out an economic policy. I am afraid that his last such speech did not go very well. From what we know about this proposal—very little at this stage—I am not aware of any country in the developed world that has a similar approach, with the possible exception of the former Soviet Union, which adopted a similar approach to its banking sector.
Harriett Baldwin (West Worcestershire) (Con)
It is a pleasure to follow the hon. Member for Linlithgow and East Falkirk (Michael Connarty). I, too, encourage many of my small businesses to look around and to act as customers. They do not have to stay with the bank they have been with since they were students.
I could not believe the bare-faced cheek of the Opposition motion on the Order Paper when I read it this morning. I am sure you felt the same, too, Madam Deputy Speaker, because you will recall—in your very impartial way—the state of the banking sector when this Government came to power. It is worth recalling the mess that we had to deal with when we took over. We had had the first run on a bank in this country for well over 100 years; we had had the biggest banking failure in the world; and we had had a decision, taken under conditions of panic by the former Chancellor and Prime Minister, effectively to nationalise large parts of the banking system. The Opposition motion should acknowledge that that was a deliberate decision. The natural course of events under capitalism would have been for those banks to fail, for all their employees to lose their jobs and for the branches in all our constituencies to close, followed by a restructuring process taking place outside state ownership. Instead, we have effectively perverted the course of capitalism, and that was a deliberate choice.
Mark Garnier (Wyre Forest) (Con)
Will my hon. Friend remind the House who the architect of the Financial Services and Markets Act 2000 was? That Act set up the Financial Services Authority, the regulator that manifestly failed to regulate the banks properly, which allowed the collapse to happen. Will she also remind us who the City Minister was at the time of the banking collapse?
Harriett Baldwin
I think I am right in saying that the then City Minister is now the shadow Chancellor. My hon. Friend rightly reminds us that the regulatory architecture that allowed this disaster to occur was also set up by the previous Government. Having been regulated by that regulator for many years, I know how important it is that the regulation of banks has been returned to the Bank of England. That is important because the Bank of England sees the canary in the coal mine when banks have problems with day-to-day liquidity. The Bank of England was able to see such problems in the run-up to the crash, whereas the Financial Services Authority, in its lofty headquarters in Canary Wharf, was at one remove from that, and there was no ability to join up the reaction. My hon. Friend makes an incredibly important point.
At the start of this Parliament, our Government inherited, in effect, a state-owned oligopoly in the banking system, and that is not a good place to be if we want to achieve a competitive and healthy banking system. The Government have embarked on a long-term economic plan to reform the banking system and make it more responsive to the needs of businesses and consumers up and down the land. That cannot be done overnight—it takes time. Step No. 1 was to reform the system of financial regulation. That was an extremely thorough and elaborate process, involving many people from within this House and the other place, and as of last year we had the final enactment and implementation. So we have taken some difficult and long-term decisions to reform the regulatory architecture in a way that will make it impossible for this sort of crisis to occur in the future.
Secondly, we have established a long-term economic plan for people and for businesses in this country. We have reformed the way in which the economy is working: we have lowered the cost of mortgages for home owners; we have lowered the cost of government for council tax payers; and we have lowered the cost of fuel over and above what the Opposition planned, so that people who drive to work do not have to pay that extra £11 in tax that had been planned for them.
Thirdly, I come to the final piece of this journey in passing on to future generations a banking sector that is, once again, fit for purpose: addressing this problem of the state-owned oligopoly. We cannot restructure the failed banks effectively within the Government’s ownership, and the best way to say that we have closed this terrible chapter that we inherited in the banking system will be by privatising the banks that are publicly owned and returning them to the private sector. We have started on that with the sale of the first tranche of Lloyds shares. I sincerely hope that the Minister will be able to reassure us that it is the Government’s plan to return Lloyds shares to the private sector.
I also argue that it is in the best interests of the economy and the country that we move now to return RBS, whose share price is still well below that paid by the former Prime Minister for its shares, to the private sector, even if that means recognising and crystallising a loss which is the price we pay for Labour’s banking failure. At the moment we are in the worst of all possible worlds: we have a system where we need to allow new entrants to come into the space, but a large semi-state-owned dinosaur is taking up a lot of market share. It would be better for that to be restructured effectively within the private sector.
My argument today is that the Government need to get out of the banking business as quickly as possible. It is not the role of government to be setting the compensation of every banker in this country. The Government must set the framework and the regulation, but this level of micromanagement is a function—a symptom—of the terrible inheritance that we received. By getting out, we must recognise that we will reform the banking sector for our children and our grandchildren. It will mean that those banks will then restructure within the private sector, and the socialists will never be able to get their hands back on running a large sector of our economy.
Autumn Statement
Harriett Baldwin Excerpts(12 years, 6 months ago)
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Mr Osborne
As I said, we are launching a huge scheme to help home movers insulate their homes, help public authorities insulate their buildings, and ensure that private landlords also have incentives. I disagree with the hon. Lady—and, I guess, her philosophy—in that I think such things are better done through incentives and lower taxes than through higher taxes and higher charges that put people off the agenda she wants to promote.
Harriett Baldwin (West Worcestershire) (Con)
The Chancellor is an historian of some note. Can he recall an occasion where such good news on jobs and growth was heard in such stony silence by the Labour party?
Mr Osborne
I did history at university if that is what my hon. Friend is referring to. The extraordinary thing is that the Opposition gambled on there not being an economic recovery, and the shadow Chancellor based his entire reputation not only on the idea that the recovery would not happen, but that it could not happen. As a result, his entire economic edifice has collapsed.
Women and the Cost of Living
Harriett Baldwin Excerpts(12 years, 6 months ago)
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Nicky Morgan
I recall that the Prime Minister is going to write to the hon. Lady with that information, so I shall have to wait to see the letter. On the point about zero-hours contracts, first, the Government have announced that they are launching a review on the issue, and secondly, she ought to be looking at the number of Labour councils that employ people on those contracts first.
Harriett Baldwin (West Worcestershire) (Con)
My hon. Friend will appreciate, as a Treasury Minister, that the fact that more women are in work than ever before will also help the Exchequer’s revenues. In the last full tax year, men paid more than £90 billion in income tax whereas women paid only £36 billion, so she can see how helping more women work up the income scale really helps the revenues.
Nicky Morgan
My hon. Friend is, of course, right, but we also need to consider the wider argument: it is good for women to have the choice about whether working is the right thing for them to do given their family circumstances and any other responsibilities they may have. We want to make it as easy as possible for women to work, and I will come on to discuss child care.
Sheila Gilmore (Edinburgh East) (Lab)
The Government’s response to all questions about falling living standards and rising costs is to talk about the raising of the income tax threshold. At least one part of the coalition is promising even more of the same and saying that that is how we help the lowest earners, many of whom are women. However, if the main aim is to assist the lowest earners, it is an extremely poorly targeted policy. It is an expensive tax cut. Three quarters of the billions of pounds that have been spent on raising the tax threshold have gone to the top half of earners in our country.
Harriett Baldwin
Is the hon. Lady arguing that the income tax threshold ought to be brought back to £6,475, as it was under her Government?
Sheila Gilmore
I will continue with what I was saying, because it is important to realise the cost of this policy to many women.
This generous gesture, which has advantaged more people on upper earnings, has been balanced by taxes and cuts elsewhere, such as the raising of VAT. Many of the cuts have affected women in particular. The cuts in tax credits have more than cancelled out the rise in the tax threshold for the lower-paid. People who have been affected by that will not be saying, “It was great that the tax threshold was raised.” They would probably rather have stayed in exactly the same position as they were in before.
Harriett Baldwin (West Worcestershire) (Con)
It is a pleasure to follow the hon. Member for Edinburgh East (Sheila Gilmore), a former colleague on the Work and Pensions Committee, who is one of the most diligent attendees in the Chamber. However, I shall disagree vehemently with her and demolish a number of the arguments that are inherent in today’s motion. I urge all hon. Members to vote against it at 7 o’clock.
I shall start with some of the macroeconomic arguments and make the case that the way to destroy a country’s wealth, and to plunge people into many years of poverty, is to do what the previous Government did to the economy—create the largest recession for 60 years and the most significant banking crisis ever. I shall also outline the course of policy to follow for economic prosperity.
The secret of economic prosperity is not hard to find, but it is hard to achieve. The first ingredient is obviously a strong central bank maintaining sound monetary policy and a prudent Chancellor who maintains sound public finances. That is the framework that provides the environment in which businesses can invest, grow, export and create jobs. It is not politicians who create that wealth and those jobs, but we can damage the cost of living and the growth of businesses with bad monetary policies, high taxes, irresponsible borrowing, excessive regulation and the high interest rates that we saw under the previous Government.
The decision to make the Bank of England independent in 1997 was just about the only decision made by the right hon. Member for Kirkcaldy and Cowdenbeath (Mr Brown) with which I agreed. The mandate to keep inflation at 2% has meant some predictability and stability from the inflationary ravages that we all remember from the Labour Governments of the 1970s. It is essential that the Governor of the Bank of England, Mark Carney, is able to unwind the current additional monetary stimulus that has been needed since the crash of 2008 without allowing any major deviation from that 2% target. Sound money will mean that the pound stays strong. Given the UK’s dependence on imported goods and fuel, a strong pound keeps our cost of living down.
The Government also need to play a part. The Chancellor has taken the tough and necessary steps to bring the public finances back into structural balance.
Stephen Metcalfe
My hon. Friend talks about the Chancellor making tough decisions. Do you think it would be right to abandon the programme that we have adopted and to increase the amount of borrowing? Do you think that would be the right way for the country to move forward?
Mr Speaker
Order. I do not think anything about these matters, although I am sure that the hon. Lady does.
Harriett Baldwin
Some Opposition Members think that the Chancellor has tightened too fast, but others might argue that he could have tightened faster. I say that he has been a Goldilocks Chancellor, and this has been a tightening at the pace at which job creation has been allowed to flourish. I also want to put on record that there has been no recession in this country since 2009. At all points in this fiscal responsibility, the Chancellor has looked for measures that have helped hard-working families keep their cost of living under control. He has helped councils freeze their council tax, he has raised the tax-free threshold for working people and he has avoided the 13p fuel duty increase that Labour had planned—
Dr Sarah Wollaston (Totnes) (Con)
Today we have been talking about health care assistants, and there are 1.3 million women—it is an almost entirely female work force—doing that incredibly important job. All of them are likely to benefit from a rise in tax thresholds and very many of them from extra assistance with child care.
Harriett Baldwin
The previous Government, as we heard from the hon. Member for Edinburgh East, thought it was appropriate to tax people earning only £6,500 per year, and to give them their own money back in the form of tax credits. I believe it is more important that we do not take that money in the first place.
I want to demolish what the hon. Member for Ashfield (Gloria De Piero) said on disposable incomes. Since the start of the economic downturn, the average equivalised household income has fallen by about £1,200 since 2007-08. The Opposition talked about the average fall, but the richest fifth of households have seen largest fall. In contrast, after accounting for inflation and household composition, the average income for the poorest fifth of households has grown in the same period by 6.9%—a statistic from the Office for National Statistics. I refute the argument inherent in the motion that we have had a particularly serious impact on the cost of living for women.
I would also like to demolish the claim in the motion that the Chancellor has made
“women pay three times more than men to bring down the deficit”.
I have taken the trouble to look at the Full Fact website, which I recommend to Opposition Members. It makes a line-by-line demolition of their claims. For example, women such as me, who earn more than £60,000, no longer receive child benefit. That is counted as a negative, but I would argue that that is a sensible way to reallocate scarce resources. The Opposition count it as a negative that the income tax cut does not help women as much as men, whereas I think it is a good thing that women are given a tax break.
The third point I would like to demolish is that it is a problem for more women than ever before to be in work. I welcome it. One reason this has been a successful area of welfare reform is that the number of lone parents out of work—I accept that the number of lone parents out of work declined under the previous Government—has declined sharply since 2010, falling by 26% to just under 500,000. I agree that that is still too high and we have more to do, but we are doing an enormous amount—providing free child care and helping lone parents into work—to help them to lift their own families out of poverty. There are other positive aspects of welfare reform for women in the workplace. Although well intentioned, a terrible consequence of Labour’s approach to welfare is that it trapped many women in 16-hour-a-week jobs. I have met many women in my constituency who have said, “I have been offered more hours, but it does not make economic sense for me to take them.”
Harriett Baldwin
I do not have enough time, I am afraid.
In fact, we were paying a lot of women to maintain 16-hour-a-week jobs. That may be ideal for some people’s family situation, but it sends a poor message, through the welfare system, that we need to tackle. We need to allow women to progress up the income scale in the same way as men so that—I do not often argue for higher taxes—men and women pay the same amount of income tax. At the moment, women pay approximately 60% less income tax and I would like to see progress on that.
The motion is full of holes. I urge right hon. and hon. Members to vote against it.
Tom Blenkinsop
I cannot agree with that at all. The structural imbalance—I assume that the hon. Gentleman is referring to the staple industries in the north-east—has had a long-term effect primarily because of his party’s record in the north-east of decimating heavy industry back in the ’80s and ’90s. The increase in female unemployment is unprecedented. I have never before seen these levels of female unemployment. Previously, we had long-term male unemployment in my region. That was difficult, but families still had a working mother. Now, these families have unemployed mothers and fathers, meaning far more significant long-term consequences for my area. That is what I am frightened about.
There is a big gender split in apprenticeships, because young women take a much narrower range of apprenticeships than young men, yet there remains a skill shortage in these new industries. It seems only logical, then, that all the stops should be pulled out to encourage young women seriously to consider these industries as a career. Increasing the number of women working—or at least taking up apprenticeships—in these male-dominated industries would go a long way to stem the flow from short-term to long-term unemployment. We must challenge the stereotypes in careers advice for young women and encourage more girls to take up higher skilled apprenticeships, but that has been made increasingly difficult by a Government who have undermined careers services. One of the Government’s first decisions was to get rid of Connexions, which was a careers advice service in schools giving children guidance on career paths.
On equal pay, the gender pay gap stands at 15%, unchanged on the year before. We know that the reasons for the persistent gap are varied and complex, ranging from occupational segregation to a lack of well-paid part-time work and, even in this day and age, discrimination in the workplace.
In August, the Chartered Management Institute found that women who have reached management positions can expect to earn only three quarters of the pay of their male colleagues. Even more staggering was the finding that the more highly skilled and highly paid the profession, the greater the gap between men and women’s pay. In modern Britain, undervaluing the talents and skills of women is a loss to the whole economy, so the issue of equal pay is a tough nut that needs to be cracked.
Several actions could be taken to help that situation. For example, the introduction of mandatory pay reporting, including the Equality Act 2010, would highlight the differences between what businesses pay their male and females colleagues. We should improve the law on flexible working and do more to encourage businesses to utilise flexible working practices. However, the revelation that up to 50,000 women a year could be losing their jobs while on maternity leave is a shocking one, yet far from doing anything about it, Ministers are making it worse by charging women £1,200 for challenging discrimination at an employment tribunal.
To address the specific barriers that single mothers face, we Labour Members will support women who have to juggle work and child care by restoring breakfast and after-school clubs in primary schools from 6 am to 8 pm for every child, and provide 25 hours of free child care for three and four-year-olds of working parents. Those are simple actions that the Government should seriously consider.
My final point is on the broader issue of the cost of living crisis that women currently face. As we all know, women are struggling as prices continue to rise faster than wages, and the latest figures show that working people are on average £1,600 a year worse off since May 2010.
The Government’s change to the tax credits rules means thousands of families will have lost out on their working tax credits unless they have been able to increase their working hours significantly. Any woman or any couple earning less than about £17,700 will need to increase the number of hours they work from a minimum of 16 to 24 a week—otherwise, they will lose working tax credits of about £3,500 a year. According to the House of Commons Library, this has hit 212,000 low-income families.
Of course, the situation was supposed to have been compensated for by the March 2012 Budget’s introduction of universal credit that was to come into force last month. To a certain extent, it would have restored families to a parity with what was seen with working tax credits under Labour. Due to the ongoing chaos in the Department for Work and Pensions, that has not happened. Some of my hon. Friends have mentioned the Tory Free Enterprise Group and its proposals to increase the price of food and children’s clothes by 15%.
Tom Blenkinsop
No.
This group of 42 Tory MPs sees it as necessary to raise VAT on gas and electricity to 15%, which would add £120 to the average energy bill. Let me remind the House that when the Prime Minister was an adviser to the Chancellor of the Exchequer under the previous Conservative Government, he advised that Chancellor to bring in VAT on fuel. He also advised that Chancellor to bring in air passenger duty and the fuel duty escalator. VAT has risen under every Conservative Government since it was introduced—another fact for Government Members to ponder. That is an illustration of the Tory addiction to indirect taxation.
For women, there is an even harsher reality. There is an increasing financial burden on women with many, particularly over 40-year-olds, prioritising supporting their children over building up a pension pot. Many have to find the money for family caring responsibilities or to pay off debts. Disproportionately stuck on pay below the living wage rate, 27% of women are not paid the living wage, compared with 16% of men. This gap is especially distressing now that mothers are either the breadwinners or co-breadwinners for their families in many households.
The future is not too bright either. Research by insurance firm, Scottish Widows found that only 40% of women put enough money aside for an “adequate” retirement—down from 50% two years ago, and the lowest amount since the number started to be tracked under Labour in 2006. On average, women who are saving are putting aside £182 each month, compared with £260 for men—a pensions “gender gap” of £1,000 in contributions each year. The continued squeeze on the cost of living has made it much harder for many women not only to live an adequate and healthy lifestyle now, but to consider saving for their future and retirement. The gender pay gap, the opportunity gap and the oncoming pensions gap have played a significant part in explaining why it is imperative to bridge those gaps sooner rather than later.
Harriett Baldwin
Does the hon. Lady therefore disagree with the Office for National Statistics when it says that the equivalised, after-tax income for the poorest fifth of households has risen under this Government, and that that income has fallen the most for the richest fifth?
Mrs Hodgson
I just do not recognise those figures. Our figures from the Library—and any other figures that we have seen on this matter—show that women are £1,600 a year worse off under this Government. [Interruption.] It is true, and I will write to the hon. Lady and give her the figures.
Child care bills are rising five times as fast as incomes under this Government. Energy bills are shooting up at similar speeds. The weekly shop is getting even more expensive, and real incomes are down by between £1,500 and £1,600 as prices have outstripped wages in 40 of the 41 months of this Government. Women’s long-term unemployment is up 80,000 since the election, compared with a figure of 10,000 for men. Older women’s unemployment is up by a third, while the figure for men has marginally fallen. More than 1 million women are unemployed, and countless others are stuck in low-paid, insecure jobs.
It is women who are struggling to get by over the long school summer holidays, with extra child care to pay for, school uniforms to buy and extra food to put on the table, yet we hear from the Government that they want to slap 15% VAT on the school uniforms on our children’s backs, on the cereal in their bowls and even on the electricity that lights their homes. How out of touch can the Government get? Despite all that, women hold the key to building a sustainable economic recovery that works for everyone. Millions of women want to get back into work or to increase their hours.
Oral Answers to Questions
Harriett Baldwin Excerpts(12 years, 7 months ago)
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Nicky Morgan
It is very interesting to hear what the hon. Gentleman says, but the first thing he needs to do is explain to his constituents why he voted for the decarbonisation target, which is going to add £125 to energy bills. Secondly, it was the last Labour Government who created the big six. We started off with 20; they left us with the big six. Thirdly, this Government have set out very clearly how they will help households—by reviewing green levies, by encouraging switching, which I am pleased to see the Leader of the Opposition has taken up, and by increasing competition.
Harriett Baldwin (West Worcestershire) (Con)
I, too, welcome the Minister to her post. She will know that one of the energy bills that my rural constituents have to struggle with is for petrol. Will she tell us whether the Office for Budget Responsibility has done an assessment of how much families are saving by our avoidance of the 13p fuel hike planned by the Labour party?
Nicky Morgan
I thank my hon. Friend for her question. The OBR does an assessment of all taxes and their impact on the economy. The policies that this Government are pursuing in recognition of the pressures on household budgets mean that filling up the average car is costing families £7 less at the moment, and by the end of this Parliament it will cost them £10 less.
Oral Answers to Questions
Harriett Baldwin Excerpts(12 years, 9 months ago)
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Sajid Javid
It is interesting that the hon. Lady did not mention the Armitt review, which was set up by the shadow Chancellor. Perhaps it is because Mr Armitt concluded that there was an economic crisis when this Government took office and she does not want to draw attention to it. However, she will be reassured to know that the Government take infrastructure investment very seriously. It is a top priority, which is why public investment under this Government is higher in each year of this Parliament than under the previous Government’s plans, as well as being higher as a percentage of national income.
Harriett Baldwin (West Worcestershire) (Con)
A crucial part of our national infrastructure is broadband for the 21st century. Will the Minister join me in congratulating Worcestershire county council on its excellent plans to put 90% of homes and businesses on superfast broadband?
Sajid Javid
My hon. Friend is right to draw attention to what is a hugely important plan for the residents of Worcestershire, which includes my constituents in Bromsgrove. We are right to make that investment, because it will make a real difference.