Midlands Engine

Debate between Jim Cunningham and Chris White

Tuesday 24th January 2017 Westminster Hall

[Chris White]

I was coming on to HS2, which I have religiously voted against at every single opportunity. However, even I am beginning to see that it may become a reality. If it does, we must make sure that we take the benefits that HS2 brings, whatever they may be.

[Mr Jim Cunningham (Coventry South) (Lab)]

The hon. Gentleman, like me, is obviously opposed to HS2. The only area of the midlands to benefit will probably be Birmingham and the surrounding area, but Coventry and Warwickshire, where he has a seat, will not necessarily benefit.

More importantly, whatever the negotiations in relation to Brexit are, we need the Minister to reassure us that regional aid will be replaced with another form of aid for the midlands. We do not want to lose out. When I was leader of Coventry City Council, we did not get regional aid; companies such as Nissan went to Sunderland instead, because that area got regional aid. That is a very important point.

[Chris White]

I thank the hon. Gentleman for his intervention. He says, perhaps unkindly, that Birmingham might be the only place that benefits from HS2, but there has been a suggestion that only London will benefit. He is tempting me into a debate that is perhaps for another day.

Digital infrastructure is also part of our connectivity and a vital component today. That will increasingly be the case in the interests of the local economy. Each region has its own specialisms and needs, which means that it is necessary to make tailored decisions that will impact positively on each region. Midlands Connect has an important role in this, representing the transport partnership of the midlands engine with 28 local authorities, Network Rail, Highways England, Government and the business community working together. In addition, developing a skills base to match the demands of an ever-evolving business world is imperative. As such, aligning skills with regional business can be instrumental in boosting our economic growth.

The Government’s industrial strategy, which I was delighted to see launched yesterday through a statement in the House, is a policy I have spoken on at length before. I see the midlands engine as an important part of the broad approach. As the strategy develops, regional empowerment must be at its core so that the constituent parts of the UK reach their potential and the whole nation benefits.

As with the industrial strategy, the midlands engine must be underpinned by a focus on individuals and communities feeling a part of the policy. If each community understands how relevant the strategy is, that strategy will seem much closer to individual citizens than something such as a long-term economic plan. Individuals and communities can better understand the role that they can play in an industrial strategy.

Industrial Strategy

Debate between Jim Cunningham and Chris White

Thursday 20th October 2016 Commons Chamber

[Chris White (Warwick and Leamington) (Con)]

I beg to move,

That this House has considered industrial strategy.

May I thank what we call the BBCom for approving my application for this debate? Let me also thank the hon. Members for Hove (Peter Kyle), for Edinburgh West (Michelle Thomson) and for Hartlepool (Mr Wright) for supporting this debate. We often debate policy in this Chamber, but it is rare for us to debate the creation of a new Department and what it will in fact mean.

In my maiden speech, I referred to my constituency, Warwick and Leamington, as being at the centre of the country, both geographically and demographically. We have good schools, colleges and two highly respected universities on our doorstep. We have many businesses, which are household names, a skilled workforce and low unemployment. The constituency has a strong reputation in the technology sector, particularly in the video games industry, and the wider region has a heritage firmly based in manufacturing.

This month, on a visit to my constituency, I was pleased to see the site that will house a new factory for Vitsoe, the furniture manufacturer and exporter. It is on the very spot that was home to the Ford foundry until it sadly closed in 2007.

[Mr Jim Cunningham (Coventry South) (Lab)]

The hon. Gentleman’s constituency is next to mine, and he will know that Jaguar Land Rover has its main development plant in Coventry, probably employing around 5,000 to 6,000 employees. Equally, he will also know that the Chinese have put more investment into the black cab company, which is constructing a new site in Coventry. That gives us a good demonstration of some of the industries that have been created in the midlands.

[Chris White]

I welcome that intervention. The hon. Gentleman and I have attended some of those very interesting institutions and worked together at Warwick University, one of our leading international universities.

I am pleased that Tata has based its new technology centre in Leamington, which shows what effect inward investment can have on our constituencies and our country. Despite the collaboration—the links between our educational institutions and business, its location and its workforce—how much more could we do as a constituency and as a country if we had the strong foundations of an industrial strategy?

Since working in the automotive sector, I have always had a passion for manufacturing, not least as co-chair of the all-party manufacturing group. I am a member of the Business, Energy and Industrial Strategy Committee—I am pleased to see its Chairman, the hon. Member for Hartlepool (Mr Wright), in his seat—and we are currently taking evidence on this concept.

We have recently heard evidence from the right hon. Member for Tatton (Mr Osborne), the former Member for Twickenham and Lord Heseltine, who all assured us in their own different and special ways that we have had an industrial strategy all along. Perhaps they are right, but I would like to use this speech to say how I think an industrial strategy could be reformed to meet some of the present challenges that we face.

In the last Queen’s Speech debate, I spoke on industrial strategy. I remember that most of the other speakers spoke about sugar tax, an important issue at the time. I must admit that I was not entirely overwhelmed by the Government’s enthusiasm for what I was saying, so no one is more delighted than me to see the inclusion of the words “industrial strategy” in the name of a Department.

There has been a sense of scepticism about industrial strategy. [Interruption.] That was more warmth than I received for my remarks in the Queen’s Speech debate. Industrial strategy has been given negative connotations. Let us consider British economic performance, for example, in the post-war period. Britain’s relatively poor record between 1950 and 1979 has generally been blamed on the lack of competition, with traditional firms being unwilling to adopt technological or process advances. Wilson’s “white heat” of the scientific revolution was replaced by a heavy reliance on the financial sector. Neglect in the past has seen a weakening of our supply chains and a huge shortfall in the skills that a world-class industrial base requires to satisfy both demand and opportunity.

We need to have a strategy and structure in place, a need made even more urgent following the EU referendum. In addition, highly capital-intensive advanced manufacturing requires long-term planning. There is a burden on companies to invest in skills and equipment, and a burden on the state to help create stability for long-term decision making—macroeconomic, fiscal and regulatory.

For manufacturing to grow, an emphasis needs to be placed on encouraging investment and greater long-termism. Although initiatives such as the midlands engine and the northern powerhouse are laudable, they need to be supported by strong tangible policy, and that policy will be less effective if it is piecemeal. For example, capital allowances were popular with industry, but were discrete in their design. A coherent strategy can work for the midlands, the north and the south, driving growth, building economies and providing sustainable employment and the subsequent reduction in community and individual inequalities.

Any new industrial strategy must fit the times we live in, the domestic economy, the global marketplace and developing themes such as Industry 4.0. In September 1965, the then Secretary of State for Economic Affairs produced the national plan, which sought to cover

“all aspects of the country’s economic development for the next five years”.

The plan was more than 450 pages long and looked at everything from the running costs of schools to the future development of the electronics industry. The plan was comprehensive in scope, but our economy no longer operates under such a structure and the plan would have negative consequences if replicated today.

The lack of success of documents such as the national plan does not mean that there should not be a national industrial strategy now for the UK, or that there is not a case for a coherent document to be drafted by the Government, outlining the support that they intend to give the sector and Departments. In countries such as Germany, long seen as a model industrialised nation, there has been little need for the Government to pin down formal strategies or statements because this philosophy is so entrenched and embedded in all activity. In Britain, there has been a tradition of volunteerism when it comes to economic organisation.

The Economy

Debate between Jim Cunningham and Chris White

Thursday 4th June 2015 Commons Chamber

[Chris White (Warwick and Leamington) (Con)]

Thank you, Mr Speaker—not least for putting me higher up the list than you intended to yesterday.

I congratulate my hon. Friend the Member for Bexhill and Battle (Huw Merriman) on a fabulous maiden speech. I hope that, like me, he will grow to cherish the double-barrelled nature of his constituency.

I am grateful for the opportunity to support the Queen’s Speech, and, in particular, the measures that will build on the work done in the last Parliament to secure the continued growth of our economy. Whether we are talking about big manufacturing brands and household names such as Aga Rangemaster, Dennis Eagle and National Grid, or the new and exciting creative industries and companies such as Freestyle Games and Radiant Worlds, Warwick and Leamington is clearly a good place in which to do business. I also welcome Tata Technologies, which has unveiled plans to build its new European headquarters in my constituency next year.

I am delighted that the Government have announced plans to continue our economic growth by supporting business and encouraging job creation, with the ambition of achieving full employment. We have a fantastic record, on which we continue to build. In Warwick and Leamington, for example, the number of jobseeker’s allowance claimants has fallen by 74% over the last five years, and the number of youth claimants has fallen by an astonishing 82%. Tribute must be paid to employers and employees for that achievement..

Warwick and Leamington is part of a region that has a tremendous manufacturing heritage. During the last Parliament, we saw a renewed and extremely welcome focus on manufacturing and the re-shoring of that vital sector of the economy—in the words of the Chancellor,

“the march of the makers”.

Manufacturing is growing in the United Kingdom, and in the midlands in particular. It makes up 54% of UK exports, and directly employs 2.6 million people. Growth has been positive in recent years. In 2014, sales in the UK car industry in the UK were the best for nearly 10 years, which was a particularly encouraging development. In manufacturing overall, there is an average productivity increase of 3.6% a year.

I believe that the Government must ensure that the United Kingdom continues to be a place where things are designed and made. That means supporting businesses, large and small, particularly those in the supply chains. We must also address the skills shortage, and focus on training young people to be equipped for the workforce. One way of supporting businesses is to create an environment in which we can foster collaboration and support between businesses. We are already seeing examples of that in the establishment of local enterprise partnerships and the growth of city deals throughout the country. The all-party parliamentary manufacturing group, of which I am co-chair, recently published a report about skills I am delighted to see that the other co-chair, the hon. Member for Huddersfield (Mr Sheerman), is in the Chamber.

[Mr Jim Cunningham (Coventry South) (Lab)]

Will the hon. Gentleman give way?

[Chris White]

I will give way to my near neighbour.

[Mr Cunningham]

The hon. Gentleman’s constituency abuts mine. We share an interest in research and development, and in both small businesses and major companies such as Jaguar Land Rover. Does he not welcome this development?

[Chris White]

I welcome it very much. I also recognise that the hon. Gentleman and I share a university. The students live largely in my constituency, but the University of Warwick is based in his. It is celebrating its 50th anniversary this year.

The Royal Academy of Engineering has reported that the country will need an additional 800,000 graduates in the science, technology, engineering and mathematics—STEM—sectors by 2020. Encouraging students—boys and girls—to study STEM subjects at school and providing clear career advice to students from a young age will help to address this serious skills gap. We must ensure that our technical and further education colleges are given the recognition and assistance they need to achieve this.

We are particularly fortunate in Warwick and Leamington to have Warwickshire College, one of the best further education institutions in the country. We are also home to many students from Warwick University which, after only 50 years, is already one of the top 100 universities in the world. I have been privileged to see the quality of the training and education that both those institutions provide. Over many years now, this has reinforced for me the importance of tertiary and further education in providing the skills and training that young people need to succeed.

In terms of further education, Warwickshire College has entered into partnerships with local employers such as Rolls-Royce and Jaguar Land Rover to provide work experience and ensure that students are exposed to the workplace throughout their education. This collaborative approach provides the best of both worlds for students. I would like to take this opportunity to welcome the new principal of Warwickshire College, Angela Joyce, to her post. I would like to reiterate the importance of support for our economy to create an environment that supports job creation and business growth. Additionally, giving our young people the skills that they need to get those jobs is just as vital, not least as we see existing and new sectors develop and grow.

Warwick (1,100th Anniversary)

Debate between Jim Cunningham and Chris White

Wednesday 17th December 2014 Commons Chamber

[Chris White (Warwick and Leamington) (Con)]

It is an honour to represent the constituency of Warwick and Leamington, particularly in this anniversary year. The constituency includes the towns of Leamington, Whitnash and Warwick and a number of surrounding villages, but in this debate I wish to celebrate the 1100th anniversary of the founding of Warwick, a town steeped in history and characterised by a strong community spirit.

Many of the iconic buildings that make up part of this history are still standing today, and are integral to the fabric of the community. The transition from a defensive stronghold in 914 to the impressive county town of Warwickshire in 2014 is clear for all to see; Warwick has developed over many centuries and is now a remarkable place to live and a popular tourist destination. I would like to put on the record details of its long and illustrious history, and reflect on the characteristics that shape our town today.

Historic buildings are a defining aspect of Warwick, including St. Mary’s collegiate church, dating back to 1123, and the Chantry chapel at the Lord Leycester hospital, dating back to 1126. Alongside this historical grounding and rich heritage, Warwick is home today to a range of fantastic schools, voluntary organisations and businesses, all supported by local residents with a dedicated, hard-working and neighbourly nature. It also stages nationally-renowned festivals, from the ever-popular folk festival, now in its 35th year, to the annual Victorian evening which starts the festive season in a spectacularly traditional way.

Our open green spaces remain a picturesque part of Warwick—not least St Nicholas park, alongside the river Avon. As a Warwick resident, I hope to see our open spaces preserved and the beauty of the town maintained. Given the nature of Warwick, excessive development would not be in our best interests and I have campaigned against it.

It is widely accepted that the founding of Warwick came in the year 914, when Ethelfleda, Lady of the Mercians, established the settlement—a lady whose face has appeared on many mugs, tea-towels and other merchandising this year. The town was built on a small hill that controlled the river crossing on the road to London, and was strategically placed to control the Fosse way, built by the Romans. It was therefore an excellent location to protect locals from the threat of invasion. According to the etching from 1731 in my office

“the town has a pleasant situation on the North side of the River Avon upon a hill”.

However, the etching also suggests that there were settlements on this land prior to 914, and that Kimboline, a British King, established a town there around Christ’s nativity.

The fortified dwelling was one of 10 built to defend Mercia from the threat of the Danes, and the settlement became the county town of the new shire of Warwickshire in 1001. In 1068, William the Conqueror built a motte and bailey castle to gain control of the region and to respond to various uprisings. The famous castle is still an integral part of Warwick, providing a majestic backdrop and attracting vast numbers of visitors every year.

In 1086, 244 dwellings were recorded in the Domesday Book as the settlement started to grow. The fortification of the town was completed with the construction of a town wall. A market was based in a number of streets and buildings across Warwick. Because of its location away from the main trading routes, there was significant competition from nearby towns for trade. The main prosperity came from the castle, but trading was certainly a major feature, and the market remains a part of weekly life in our town today—come rain or shine, traders still operate in the square every Saturday.

The square also has the statue of Randolph Turpin, the boxing champion who won the world middleweight title in 1951. He was considered to be one of the best in the sport throughout the 1940s and 1950s. Wandering through the square and around the centre of Warwick, we find a huge array of pubs and restaurants and a fabulous night scene.

By the 15th century, many of the suburbs we see today were formed, including Saltisford and Smith Street. By the early 17th century the general street pattern was clear, and the town was being shaped as a tight community that continues today.

[Mr Jim Cunningham (Coventry South) (Lab)]

I congratulate the hon. Gentleman on securing the Adjournment debate. His constituency is right next to mine, although mine is in Coventry and at one time Coventry was part of Warwick. Will he join me in congratulating Warwick university, which is partly in Coventry and partly in Warwickshire, as next year will be the 50th anniversary of its foundation? I know he takes a great interest in that.

[Chris White]

I am grateful for the hon. Gentleman’s contribution. We work closely together to celebrate the contribution that the university makes. It was good to join him in marking that anniversary a couple of weeks ago. I hope Coventry and Warwick can work together to make sure that the university continues to flourish.

In 1552, the court leet was established by a royal charter, and is still in existence. The group of jurors represent the best interests of the borough, and includes interesting positions such as constables, overseers of pavements, an ale taster and a brook looker. This hat-tip to history is representative of what Warwick is about. I pay tribute to the current mayor of Warwick, Councillor Moira-Anne Grainger, who helps to continue the fine tradition of civic leadership and pride.

As the county town, Warwick attracted many visitors. The market remained a feature, and the town became a popular destination. Horse racing was becoming a crowd-pleasing form of entertainment in the 17th century, and with the financial help of Lord Brook, the first race took place on St Mary’s common in 1707. The racecourse remains a distinct part of the town, holding regular meetings, and is nationally recognised. Entertainment was provided for all tastes as the town grew, and a theatre was built in the 1790s.

During the civil wars of the 17th century, Sir Robert Greville sided with the parliamentarians and put the castle in a state of readiness, yet Warwick managed to remain unscathed. However, the town’s luck came to an end on the afternoon of 5 September 1694. The great fire, which almost destroyed the town, spread swiftly across much of Warwick, destroying or damaging about 250 shops and houses owing to their timber frames and close proximity. The impact that this had on the town was far reaching, requiring financial support to rebuild the affected buildings. Plans were put in place by the owner of Warwick castle, together with local gentry. Most of the rebuilding was completed within a few years, and the designs were subject to an Act of Parliament. This discouraged alterations to the town for a number of years, but in the 18th century the design of Warwick became more creative.

The court house was built in the 1720s and the shire hall was replaced in 1758. Although the current shire hall is one of the most shocking pieces of architecture in the town, it houses the county council. I hope that in 2015 we can start the process of consultation as to the merits of a unitary authority. I would like to praise Warwick town council for reopening the beautiful building that is the court house on Jury street, with the financial assistance of the Heritage Lottery Fund. The grade 1 listed building has this year become a place for community events, and it is wonderful to see it being utilised in this way. The court house holds fond but anxious memories for me personally, as it was at a meeting there in 2002 that I was selected to stand as the candidate for the Warwick and Leamington seat.

I should like to add a little more detail on the castle, which is undoubtedly one of the most striking features of the town. William I began its construction in 1068 and it still stands today as a landmark, attracting hundreds of thousands of visitors each year. Passing through generations of families, the castle provided protection for nearly 200 years, and was converted into a stone structure in 1260. Four years later, Simon de Montfort successfully attacked the stronghold as leader of the rebellious barons. Caesar’s tower and the dungeons were built in 1350, and Guy’s tower was completed in 1395. A number of our monarchs have visited the castle over the centuries, including Queen Elizabeth I, King William III and Queen Victoria. The castle was attacked in 1264, besieged in 1642 and damaged by fire in 1871, but it has stood the test of time.

St Mary’s church also dominated Warwick in its early days and is an important part of the town today. It was established in 1123 by Roger de Beaumont, the second Earl of Warwick. The only surviving part that de Beaumont built is the crypt, with the chancel vestries and chapter house being extensively rebuilt in the 14th century by a later Earl of Warwick. The church, along with much of Warwick, was significantly affected by the great fire. The nave and tower were completely destroyed, and the church as we know it today was rebuilt in the early 18th century by the brothers Francis and William Smith.

There is much to see in St Mary’s church, including the chapel of the Warwickshire Regiment, several monuments to Warwick dignitaries, and the Beauchamp chapel. In this stunning chapel is the tomb of its builder, Richard Beauchamp, the 13th Earl of Warwick. Beauchamp served Henry IV, Henry V and Henry VI and was a great landowner of the time. His daughter married Richard Neville, who was known as Warwick the Kingmaker, due to wielding the balance of power through the weakness of kings during the first half of the wars of the roses. I am pleased to be a member of the congregation, and I pay tribute to the rector, Vaughan Roberts, who has for many years led services at St Mary’s. I also thank the choir and the organist, who put on a wonderful performance at the carol service on Sunday.

Each year at St Mary’s, the feast of Thomas Oken is celebrated. Oken made a considerable fortune, and left most of it to fund education and housing in the town. His attitude to helping those in need is reflected in his will, which distributed funds to the town. A deeply religious man, Oken put the town and fellow residents first, and provided £1 annually for a feast. His house has been converted into Oken’s tea rooms in Warwick, located near the castle, and his name lives on in Warwick folklore.

The Lord Leycester hospital, an historic group of timber-framed buildings dating back to the late 14th century, is another eye-catching part of the centre of the town, and has a beautiful 12th century chapel attached to it. The word “hospital” is used in its ancient sense, meaning a charitable institution for the housing and maintenance of the needy, infirm or aged. For nearly 200 years, it was the home of Warwick’s medieval guilds. In the reign of Queen Elizabeth I, it became a place of retirement for old warriors, and it remains today as an independent charity providing a home for ex-servicemen and their partners. The man in charge of the hospital is still referred to as “Master” throughout the town.

A little further out of town, Guys Cliffe is a large manor house that is now sadly run down, but it provides a fascinating story about the famous Guy of Warwick. The legend goes that Guy, the son of a castle steward, won the heart of Lady Felice, daughter of the Earl of Warwick. Owing to their different roles, it was unacceptable for the romance to flourish, so Guy went away to fight as a knight to prove his worth. On returning to Warwick, he married Lady Felice but regretted his violent past and embarked on a pilgrimage. On returning once more, he settled in a cave at Guy’s Cliffe, overlooking the Avon, living the rest of his life as a hermit.

Another institution with its roots in history is Warwick school, the oldest boys’ school in the country. The school was certainly in operation during Edward the Confessor’s reign in the 11th century, and there is a statue of him in the entrance hall, but it was probably in existence around the time of the founding of the town itself. The school was situated in the market place, before Henry VIII re-founded it as the King’s New School of Warwick. At that point, the school moved to what is now the Lord Leycester hospital, having being situated in a number of locations. His Royal Highness the Prince of Wales visited this year to congratulate the school on its anniversary. Fittingly, the under-15 rugby team became national champions this year, while the under-18s reached the final at Twickenham.

Schools across the town have much to pride themselves on. I have had the opportunity to meet many groups of students across the area over the years, and the energy, passion, maturity and attitude to hard work are clear to see in all our younger people. As a patron of Myton school, I find that it is always a highlight to visit and to welcome students to Parliament each year, and it will be a great honour to present awards at the school’s ceremony tomorrow evening. Tomorrow morning, I shall be visiting Aylesford school to join the official turf cutting ceremony on the playing fields, marking the start of the new Aylesford primary school build, which is due for completion and to open for its first reception intake in September 2015.

Warwick hospital is also an excellent example of an outstanding local institution, and recent figures in the 2014 Quality Health survey illustrate that 93% of A and E patients that responded felt they were treated with respect and dignity. The dedication and commitment of those who work in the hospital are phenomenal, and only on Monday I had the chance to visit the hospital to see the beginning of the construction of a new ward, which will yet further increase their capacity. Myton hospice also provides an incredible quality of care and is the pride of many in the district. I hear many moving stories about its work, and have had the pleasure of meeting many of the staff and volunteers who are involved.

Community projects generally are a real feature of Warwick. As its Member of Parliament, I have had the opportunity to become involved with a number of fantastic initiatives. The Friends of Warwick Station is an excellent example, aiming to improve the facilities and aesthetics of our railway station. Recently, children from a number of schools across the area joined the group for a flower-planting session, typifying our community spirit. I pay tribute to our local papers, the Warwick Courier and the Warwick Observer, for raising awareness of such initiatives.

On the political aspect of Warwick, the town is first known to have returned members to Parliament in 1275. The parliamentary seat of Warwick and Leamington that I represent was formed in 1885, bringing to an end the election of two Members in each parliamentary Session. Among other predecessors was Sir Anthony Eden who represented the constituency between 1923 and 1957, which gave it its nickname ‘The Garden of Eden’. In his first election victory, Frances Evelyn Greville, the Countess of Warwick, stood against Eden as the Labour candidate. Daisy, as she was known, had joined the Social Democratic Federation in 1904, donating large amounts of money, and supported the great October socialist revolution in Russia.

The rich history of Warwick and the heritage that is stamped on the town can be reflected on with much pride. Industrially, our area is well known for its manufacturing expertise, and the recent growth of the sector is a welcome return to our roots. Our local performance in business is a credit to the array of qualities that the town possesses. Firms operating in more established sectors are also excelling, such as the National Grid Company, and DCA Design International, a world-leading product design consultancy. As many Members will be aware, we recently celebrated small business Saturday, and I have long been an advocate of promoting the value that small firms bring to our economy. I was delighted to walk around the town to visit many of the businesses that are behind the recent resurgence of our local economy, and even managed to purchase my Christmas turkey!

In the 2015 UK vitality index, promoted this week, for local economies by Lambert Smith Hampton, Warwick is fifth overall. In addition, our town ranks equal first for education in the index. Mr Deputy Speaker, if you would indulge me briefly, let me say that jobs figures released today show that in my constituency there has been a 73% fall in the number of unemployed claimants since 2010. That is a remarkable decrease, and I pay tribute to the businesses that have been instrumental in strengthening our local economy.

As I have alluded to, the architecture and aesthetics of the buildings in Warwick are well known, with areas of special historical interest. Wandering through the town and the streets that were set out centuries ago is a reminder of our extensive history. J. R. R. Tolkien married in Warwick in 1916 and was an admirer of our town, with some people suggesting that his stories and writings were based on it. As reported in “Warwick: A Short History & Guide”, Tolkien

“found Warwick, its trees, its hill, and its castle, to be a place of remarkable beauty”.

Since the establishment of Warwick in 914, the town has developed across centuries with a continuous sense of strong attachment for local residents. Next year, we will celebrate the 800th anniversary of Magna Carta and 750 years since the Simon de Montfort Parliament, both important in developing democracy, and it is incredible to think that the town I represent predates that.

The castle has always been an iconic and picturesque feature, and St Mary’s church has always stood tall on the skyline. The market square is a great focal point of the town, and is often a hive of activity, as it has been for centuries. Only last week, I was sitting in the square watching the film “Frozen”, thanks to Warwick Rocks—one of many events that local organisers have done so well to put on for residents.

Today, we have an excellent hospital, successful schools, thriving local businesses, and a wonderful community spirit. Warwick may have come a long way since its establishment in 914, but there is a sense of continuity with our predecessors, which makes it a truly special town.

Mr Deputy Speaker, may I take this opportunity to wish you a happy Christmas? To the Minister, a happy Christmas, but also to the residents of our fine town, a very happy Christmas indeed.

Living Wage

Debate between Jim Cunningham and Chris White

Thursday 6th November 2014 Commons Chamber

[Chris White]

I am grateful to the hon. Gentleman for his comments and I certainly will deal with how we can encourage other Government Departments to lead the way on this.

I am delighted to have the opportunity to lead the debate. The all-party parliamentary group on poverty is most ably chaired by the hon. Member for Stretford and Urmston (Kate Green), and I as the vice chair and other members have been strong advocates of increasing and supporting the living wage. I take this opportunity to thank the hon. Member for North East Derbyshire (Natascha Engel) and the Backbench Business Committee for scheduling the debate today.

The all-party group has done a great deal of work, alongside the Living Wage Foundation, to promote the living wage and the benefits that it has for business, employees and society in general. According to a recent report by KPMG, an estimated 5.24 million people in the UK earn below the living wage.

[Mr Jim Cunningham (Coventry South) (Lab)]

The hon. Gentleman should be congratulated on bringing forward this debate. As large numbers of people are paid below the living wage, surely we should review the benefits system that seems to subsidise employers who pay very low wages. Should that not be looked at?

[Chris White]

The hon. Gentleman makes an important point. How we improve the take-up of the living wage will address some of his concerns. I hope that some of my right hon. and hon. Friends will show how this can be a benefit not just to employees but to society in general.

Despite the comments made so far, there is a positive trend in the number of employees receiving the living wage. Research from Queen Mary university of London has shown that the total number has grown significantly during the last decade. The benefits of paying staff the living wage have been widely documented. Research shows that those working in organisations that are signed up to the living wage have better psychological well-being than those working for non-living wage employers. This research also found that two thirds of employees on the living wage reported improvements in their work, family life or finances.

Businesses have reported positive effects. London Economics found that 80% of employers noticed an increase in productivity. Further research revealed that employers reported improvements in staff retention and well-being. The Living Wage Foundation research found that 75% of employees reported increases in their work quality as a result of taking up the living wage. Also, half of employees felt that the living wage had made them more willing to implement changes in their working practices.

As many in the House will be aware, the Living Wage campaign began 15 years ago as Citizens UK. It felt there was a need to respond to the levels of deprivation being experienced by people despite the fact that they were in full-time work. Although record numbers of people are in work, the Low Pay Commission found that the majority of those in poverty had a job.

In 2010-11, the Living Wage Foundation was established to develop a system through which to recognise those employers who were paying their staff a living wage.

Accreditation is awarded to companies that pay the living wage to all directly employed staff and those regularly working on their premises.

In the private sector, provision of the living wage has become a key part of many organisations’ corporate social responsibility agendas and—dare I say it?—the social value agenda. I refer hon. Members to my private Member’s Bill—now the Public Services (Social Value) Act 2012—which Members across the House supported, and I pay tribute to the work it has achieved. In Monday’s edition of The Guardian—that shows how consensual I am being—an article by Matthew Jackson specifically referred to the potential use of that Act in encouraging the uptake of the living wage:

“The living wage should be embedded into the way councils commission and procure goods and services. Councils can link procurement to strategic priorities to address low pay. They can have contracts that state potential suppliers must pay the living wage and they can use the Social Value Act…to encourage and cajole suppliers.”

That is an idea well worth pursuing.

This week it was announced that more than 1,000 companies now pay their staff the living wage—another milestone—which is more than double the number at the same time last year. It is an impressive result, and one that I hope marks a tipping point and the beginning of a cultural change.

I am pleased to note that the living wage campaign has consistently enjoyed cross-party support. This Government believe that work is the surest way out of poverty, and I share that view, as does the Living Wage Foundation. Government Departments have signed up to pay the living wage and Whitehall is now leading the way. The Department for Work and Pensions and HM Treasury are two of the Departments doing that. However, there is still some discrepancy between the pay received by contract staff, particularly cleaners, within Government Departments. I would like to take this opportunity to call on all Departments to follow the example of those that pay their contract staff the London living wage.