Grenfell Tower

Jim Shannon Excerpts

Thursday 22nd June 2017 Commons Chamber

[The Prime Minister]

The fire service was able to respond in this instance, but of course when the inquiry looks at these issues I would expect that to be one that it considers.

[Jim Shannon (Strangford) (DUP)]

rose—

[Mr Speaker]

Mr Shannon—15 seconds maximum.

[Jim Shannon]

There are 32 high-rise tower blocks in Northern Ireland where safety tests have been carried out. When it comes to the lessons learned and the suggestions and recommendations made, may I ask that the Northern Ireland Assembly and the Northern Ireland Housing Executive be made aware of those?

[The Prime Minister]

We will indeed do that. This allows me to say to the hon. Gentleman that I hope that the Northern Ireland Assembly and the Northern Ireland Executive will be formed such that they are in a position for us to give them that information.

Debate on the Address

Jim Shannon Excerpts

Wednesday 21st June 2017 Commons Chamber

[Ian Blackford]

Of course we in the Scottish National party have always accepted the result of the referendum in 2014. That is not in question. I say to Government Members that we were promised that if we voted to stay within the United Kingdom, our future in Europe would be protected.

When we went to the country last year, the Scottish National party stood on a manifesto commitment that if Scotland was dragged out of the European Union against its will, we would reserve the right to give the people of Scotland an insurance policy, whereby at the end of the Brexit process they would be able to have their say. I say to the Conservatives, who are chuntering from a sedentary position, that we won that election to the Scottish Parliament. A vote took place in the Scottish Parliament in which 69 Members of that Parliament voted to enact a referendum if the circumstances were right and 59 Members voted against. That is democracy. The people of Scotland have spoken and it is about time the Conservatives respected the sovereignty of the Scottish people.

The Government’s executive summary to the Queen’s Speech, which was published today, says that powers repatriated from the EU will be held at UK level until the UK negotiates with the devolved Governments. It states that the repeal Bill will

“replicate the common UK frameworks created by EU law in UK law, and maintain the scope of devolved decision-making powers immediately after exit.”

It clarifies that the Government will centralise fisheries and agriculture matters through specific Bills on each. Page 22 tells us:

“Aspects of the Bill will extend to the UK, as international matters are not devolved. We will consult widely with the devolved administrations on the appropriate extent of any legislation.”

This is the great power grab in action.

[Jim Shannon (Strangford) (DUP)]

I wish the hon. Gentleman all the best in his new position as leader of the Scottish National party in this place. Does he accept that some MPs—good and honourable Members—lost their seats because of their position on Brexit, Europe and fisheries? It is important that the Scottish National party Members who are here commit themselves to the policy that we will take in this House to ensure that fisheries across the whole of the United Kingdom of Great Britain and Northern Ireland are preserved, along with people’s jobs.

[Ian Blackford]

The important point is that fisheries and agriculture are devolved. We will not sit back and watch this land grab from Westminster. Powers over fisheries and agriculture must remain with the Scottish Parliament. There is a real question for Scottish Conservative Members: whose side will they be on? Will they be on the side of London or on the side of the people of Scotland? Let me tell them that if they do not stand up for Scotland, they will pay a price at the ballot box in future elections. [Interruption.] I know that many Conservatives from Scotland are here for the first time, but may I respectfully suggest to them that if they want to make an intervention, it is perhaps better to rise than to shout from a sedentary position? That is not the way we tend to behave in this Parliament.

London Attack

Jim Shannon Excerpts

Thursday 23rd March 2017 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

I commend the Prime Minister on her strength of character and leadership at this time: cometh the hour, cometh the woman. We thank you, Prime Minister—God will bless you, and all that you do.

We are all aware of the policy review that will take place. It will make recommendations for enhancements, and may I ask for an assurance that they will be conveyed to the Scottish Parliament, the Welsh Assembly and the Northern Ireland Assembly, and, further, that there will be co-operation on this with the Republic of Ireland, which is very important for us in Northern Ireland, so that security is enhanced and strengthened?

[The Prime Minister]

I thank the hon. Gentleman for his comments. Obviously, it is important that any lessons learned here on this parliamentary estate are shared with the other representative Parliaments and Assemblies across the United Kingdom.

European Council

Jim Shannon Excerpts

Tuesday 14th March 2017 Commons Chamber

[The Prime Minister]

We have had extensive discussions with the Scottish Government and the other devolved Administrations on the issues that they have raised with the United Kingdom Government and the concerns that they wish us to take into account. As I said in my statement and yesterday, there are many areas of common ground between us and the Scottish Government. For example, we both agree on the protection of workers’ rights once we have left the European Union. We have been looking at those areas of common ground, but we have also been looking, as we will in the negotiations, at ensuring that we get a deal—an arrangement and relationship for the future—that is good for the whole United Kingdom, including Scotland.

[Jim Shannon (Strangford) (DUP)]

I thank the Prime Minister for her statement and refer her to the Somalia conference that she mentioned. A Nigerian MP was a guest speaker at yesterday’s meeting of the all-party group on Nigeria. He informed all of us present that Nigeria has become the biggest centre for illegal arms smuggling in the whole of Africa. Will the Prime Minister assure me that she will raise that issue, which affects all of Africa, when the Somalia conference is hosted in the UK in May?

[The Prime Minister]

I assure the hon. Gentleman that the Government will look at the issue very seriously. Obviously there are a number of concerns in respect of what he has said, and I will certainly look at the issue carefully.

European Council 2016

Jim Shannon Excerpts

Monday 19th December 2016 Commons Chamber

[The Prime Minister]

My hon. Friend is right to raise this issue. As we focus on the specific question of Aleppo, it is easy to forget the significant contribution that the UK is making, through its aid budget, to the humanitarian effort to help the refugees from Syria. Of course, much of that is going to refugees in the countries around Syria—Lebanon, Turkey and Jordan. We are the second biggest bilateral donor of humanitarian aid for Syrian refugees and we have now committed £2.3 billion. That means that medical supplies, food and water are getting through to people who would not otherwise have them. It also means that children are being educated as a result of the money that is being spent by the United Kingdom, and it is absolutely right that we should do that.

[Jim Shannon (Strangford) (DUP)]

I commend the Prime Minister for her solid and strong stance on Brexit. However, 27 EU members met without her being in attendance. Is this the beginning of a cloak and dagger approach by the EU? What steps are being taken to ensure that we are not kept in the dark, that everything is open and transparent and that the British viewpoint as expressed at the ballot box is sacrosanct and remains a priority?

[The Prime Minister]

The 27 members of the European Union met for, I think, 25 minutes to discuss aspects of the process of the UK leaving the EU. It is absolutely right that they should meet together as the 27 because, when we trigger article 50, we want to ensure that the process is as smooth and orderly as possible. That is in our interests and in the interests of our economy. It is also in their interests and the interests of their economies. So I welcome the fact that they are meeting as the 27 to discuss the process and to make preparations, just as we are doing, for what will happen when we trigger article 50.

G20 Summit

Jim Shannon Excerpts

Wednesday 7th September 2016 Commons Chamber

[The Prime Minister]

I am grateful to the hon. Lady, who reminds me that I did not fully answer the question from the hon. Member for Stoke-on-Trent Central (Tristram Hunt) who referred to the issue of Japanese firms. I was able to sit down and discuss these matters with Prime Minister Abe, and the outcome was a positive desire to take forward further discussions on how we can ensure that we are getting the best possible trading relationship with Japan, and that we can continue to see Japanese investment in the UK. I am pleased to say that the single biggest vote of confidence on investment in the United Kingdom since we had the vote to leave the European Union came, of course, from a Japanese company—from SoftBank with its £24 billion takeover of ARM.

[Jim Shannon (Strangford) (DUP)]

Let me first commend the Prime Minister and her Ministers for the hard and excellent work that has been done to prepare and secure trade deals across the world. An example of a trade deal signed with the United Kingdom of Great Britain and Northern Ireland has just secured us the export of beef to the United States of America for the first time in some 20 years—despite President Obama telling us that we would go to the back of the queue. Does the Prime Minister agree that, for the United Kingdom of Great Britain and Northern Ireland, if the price is right and if the product is of the highest quality, the world is truly our oyster?

[The Prime Minister]

I absolutely agree with the hon. Gentleman. We can trade many products from various parts of the United Kingdom very well with other parts of the world. They are quality products, and it is the quality of the product that will lead to people wishing to take them.

UK's Nuclear Deterrent

Jim Shannon Excerpts

Monday 18th July 2016 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

It is a pleasure to speak in this debate. This issue has been framed as contentious, controversial and sensitive, and it has been given unneeded attention from various sections of our media and political activists within and without this House. Most unfortunate of all is the fact that too many concerns have been proven to be political dogma, masked all too often by false and misguided idealism. Some in this House ignore the reality, but we must debate that reality and present it to the House. I fully support Trident renewal, and in the Northern Ireland Assembly, aerospace, defence, security and space have been identified as priorities in the programme for government. Therefore, if jobs are coming off the back of Trident, we in Northern Ireland will take them—if they are available, send them our way.

As everyone knows, our national security is no game, and Members will be hard-pushed to find someone who disagrees with the fact that the world is over-armed and that we need to move away from war, violence and weapons with nuclear capabilities. However, we have not yet realised that ideal world, and to ignore that would be to put our country and its people in danger. Our country would be less protected than it was yesterday, and we would be more threatened by enemies who would immediately be less deterred from attacking our country. We need to be prepared for the real world we live in, with all its inherent dangers. I continue to implore those opposed to a deterrent to consider that when we take all things into consideration and are rational about the issue, the arguments consistently and overwhelmingly stack up on the renewal side of the argument. Our deterrent is a deterrent, not an aggressor or a destroyer. It is fit for purpose and will be used only for its purpose.

Not only does Trident act as a deterrent and have the potential to be extremely effective, the efficacy of the system is testimony to the continued strength of British defence. Trident forms an integral part of our strong and ready defence of a strong and proud country. Over 30 countries have weapons of mass destruction, be they nuclear or biological. The list contains our closest allies in NATO, but not all of those countries are in NATO. Were we to remove our deterrent, we would be stepping off the world stage and making our country a less significant player around the globe, and a less significant partner. We need the United Kingdom to remain strong. We need the United Kingdom now more than ever at the top table when it comes to global security. Scaling back our capabilities at a time when the world is more armed than ever, and is an incredibly volatile place, is not the way the go. The aims of disarmament need to press ahead. It is an aim that I am sure we all hope will come to fruition one day, but the ideal world does not yet exist and the context is not yet set for today to be that day for the United Kingdom.

Trident ensures, ultimately, that the United Kingdom would be able to stand up for itself even in the worst scenario imaginable. It sends out a strong message that no matter how many people talk down our standing as a nation, we remain one of the most staunchly defended nations on this earth, ready for whatever our enemies might throw at us. What is contentious about defending our country? What is controversial about preparing our country for the worst? What is sensitive about ensuring our country can react appropriately to the unthinkable? When cool heads come together and rational minds meet, the correct decision on this issue should court no controversy at all. Renewing our nuclear deterrent is the right thing to do; indeed, it is the only thing we can do. We in the Democratic Unionist party will support the Government tonight and join them in the Lobby to retain Trident and have Trident renewal.

Co-operatives

Jim Shannon Excerpts

Thursday 14th July 2016 Westminster Hall

[Hannah Bardell (Livingston) (SNP)]

Thank you very much, Mr Hollobone. I will do my best not to take such an extensive amount of time. I am sure we would all agree that the last few days have felt like something of a marathon, so I will keep my remarks brief.

I congratulate the hon. Member for Cardiff South and Penarth (Stephen Doughty). We have crossed proverbial swords in this Chamber recently, but I think today’s debate will be more conciliatory than previous ones. There have been many important and significant contributions today and I look forward to hearing the answers from the Minister on issues such as the mutualisation of Channel 4 and a public stake in Transport for London. There are many interesting ideas. I hope that we can work across the House on areas of mutual interest and agreement.

I am very happy to be participating today. My family have a great tradition in the co-operative movement. Both my grandmother and my great-grandmother travelled with the co-operative and I still remember some of the artefacts that my grandmother brought back from Russia in the 1920s.

It is particularly important to discuss and focus our attention on the role and benefit of co-operatives in our society at the end of the Co-operatives fortnight because of the Brexit vote and in the light of the Finance Bill. In this time of economic uncertainty, we would do well to highlight the contribution of co-operative, employee-owned businesses in our economy. Those employee-owned businesses contribute an estimated £34 billion a year to the British economy and there are nearly 7,000 independent co-operatives across the UK. I will not take hon. Members on a full tour of my constituency, but I would like to mention a couple: West Lothian Credit Union, of which I am a member, Pentland Garden Services, based in Kirknewton, and Eliburn Tenant Management Co-operative, all of which have an employee-owned structure and make a great contribution to the local and Scottish economy.

Two of the largest co-ops in the UK are the Co-op and John Lewis, of course. All co-operative retailers, including those two, account for £24.3 billion of the sector’s turnover. With the two strongest areas in the co-operative sector being retail and agriculture, Arla Foods and United Oilseeds contribute £5.8 billion. We cannot ignore their contribution to the economy. Nor can we ignore the co-operative sector’s contribution to the job sector. When John Spedan Lewis, the son of the founder John Lewis, handed the business over to his employees in 1928, he was driven by the desire to improve the working lives of his employees, shaking up the old ways of doing business. Today, the John Lewis Partnership is the largest employee-owned business in the UK. Its 91,500 staff members are partners in the business, and together they own 46 John Lewis shops and 349 Waitrose supermarkets across the United Kingdom, manage their respective websites and run a production unit and farm. That is a significant contribution to the United Kingdom.

John Spedan Lewis was ahead of his time. Studies now show that staff members who are also owners of their businesses are more motivated, engaged and productive. They also experience higher levels of wellbeing. In the John Lewis Partnership, absenteeism is at 3.4%, which is less than half the retail sector’s average.

Given the increasing demand placed on workers today and the impact that 24-hour access to work through phones and emails can have on employees’ mental health—I am sure we and our staff are all well aware of that—putting more ownership in the hands of employees is a model with a lot of merit. The numbers speak for themselves. The White Rose Centre for Employee Ownership, based at the universities of Leeds, Sheffield and York, found that 70% of companies that convert to an employee-owned model report an increased quality of goods and services, 57% report better productivity and 55% report better financial performance.

The co-operative sector currently employs 222,000 workers across the United Kingdom, and co-operatives affect even more of the population than they employ. There are 17.5 million members of co-operatives across the UK—about a quarter of the total population.

As my hon. Friend the Member for Glasgow South West (Chris Stephens) said, the co-operative sector has proven resilient during this period of austerity. Figures from the Cass Business School show that, in the recessionary period of 2008-09, job growth dropped 2.7% but rose to 12.9% in employee-owned firms. Their importance has endured among uncertain economic conditions. Given the current economic conditions and the recent Brexit vote, their importance to the economy is even greater. There is evidence that employee-owned businesses are more resilient and are able to create jobs at a faster rate than their non-employee-owned counterparts during periods of economic instability.

Successive Governments have consistently supported employee ownership. I pay tribute to the coalition Government, which in 2014 introduced a series of tax changes to level the playing field for employee-owned businesses. As a result, shares of profits in indirectly owned and employee-owned businesses are now income tax-free up to the value of £3,600. Business owners can also now benefit from capital gains release when they transfer control of their company to their employees.

However, we must ensure that that legislative support continues. Co-operatives are presently expressing legitimate concerns about details in the 2016 Finance Bill, specifically—I have spoken to a number of businesses that have this concern—that the calculation of the apprenticeship levy will leave employee-owned businesses at a disadvantage compared with conventionally owned businesses. Even worse, there is a real fear that that action could disincentivise the creation of employee-owned businesses in the future. I would be grateful if the Minister commented on that. There has been some speculation about the apprenticeship levy. Given the change in Government, he probably will not be able to clarify that, but any insight he can give will be of great help. A number of businesses, not all of them employee-owned co-operatives, have approached me recently with concerns about the apprenticeship levy. The recent example of BHS and the devastating impact that that has had on its workers shows how important co-operatives and employee-owned businesses are to our economy.

The numbers I have cited demonstrate how important co-operatives are to the economy and the job sector. I do not want their contribution to be diminished in any way by the apprenticeship levy. The present wording of the Finance Bill dictates that the apprenticeship levy does not include dividends to shareholders, but does include bonus payments to employee owners. That will affect about 70 employee-owned businesses across the UK, based on the criteria of companies with a payroll bill of £3 million and over.

In Scotland, the Scottish Government have pledged to encourage more challengers to mainstream service providers and to give consumers more options when choosing a loan or savings. In 2013, Alyn Smith MEP, who received a standing ovation in the European Parliament for his speech following the Brexit vote, said:

“Scotland has a long heritage in the cooperative movement.”

He noted that Scotland was home to the first co-operative—the Fenwick Weavers, in Ayrshire. It is a tradition that brings us great pride. Before I finish, I also want to mention the Edinburgh Bicycle Co-operative, which has a proud heritage in Scotland.

The message from both co-operatives and the statistics gathered by academics is clear: that alternative ownership structure makes an important and sustained contribution to the UK economy.

[Jim Shannon (Strangford) (DUP)]

Before the hon. Lady finishes, will she give way?

[Hannah Bardell]

I would be delighted to.

[Jim Shannon]

I congratulate the hon. Member for Cardiff South and Penarth (Stephen Doughty) on bringing this debate to the House. It is not anti-business to suggest that big business needs to change, and co-operatives are one way of doing that. I would like to make a plea for farming co-operatives, if that has not already been done. We have done that in my constituency. A single farmer by himself cannot make a change, but collectively, with a number of other farmers, they can secure contracts, move forward and employ more people. Does the hon. Lady agree that that is an example of how things can improve? Co-operatives can move things forward and make things happen that big businesses cannot. Sometimes a change is good.

[Hannah Bardell]

I could not agree more. I am always interested to hear what the hon. Gentleman has to say. He is such a regular contributor here and in the main Chamber. The point he makes about being small and agile, and being able to respond and do things in a different way, can be applied to co-operatives—it can also be applied to small nations. I will leave that with the House.

Report of the Iraq Inquiry

Jim Shannon Excerpts

Wednesday 6th July 2016 Commons Chamber

[The Prime Minister]

I am all for competent and effective opposition. On the job of the Opposition, I take both bits seriously: Her Majesty’s loyal Opposition. If you think the Government are making a decision in the interests of the country, you should support it. If you think they are making a mistake, you should oppose it. The job is not to oppose come what may.

[Jim Shannon (Strangford) (DUP)]

Prime Minister, thank you for your statement. You referred, in particular, to the lessons that need to be learned from the Chilcot report. You referred to assistance for veterans. We know that 179 brave service personnel gave their lives in the Iraq war, but the family support package at that time meant that only two welfare officers were left at the headquarters. I know that that has changed and that steps have been taken to ensure that veterans are not forgotten. The Government send the brave people to war and so should be more than willing to step up to the plate and deliver for them. Prime Minister, what will be done as a result of the Chilcot inquiry to address the family support criteria and the very high suicide rates among veterans?

[The Prime Minister]

The hon. Gentleman asks an important question. The report states that huge improvements have since been undertaken to improve family support and liaison, but I suspect that we need to do even more in the area of mental health. That is one of the reasons why the Government have given that area such a boost.

Social Investment

Jim Shannon Excerpts

Wednesday 15th June 2016 Westminster Hall

[Susan Elan Jones (Clwyd South) (Lab)]

I beg to move,

That this House has considered support for social investment.

It is a great pleasure to serve under your chairmanship, Mr Chope. I think it was the former New York governor Mario Cuomo who liked to repeat this quote:

“You campaign in poetry; you govern in prose.”

I apologise in advance because many of the practicalities relating to social investment and social enterprises are technical by their very nature, so most of my speech will be in prose, and pretty dry prose at that, but just for a moment I want a word of poetry, or at least a word of vision, to remind us what social investment and social enterprises are all about. As Social Enterprise UK, the national body for social enterprises, puts it:

“Social enterprises trade to tackle social problems”

and

“improve communities, people’s life chances, or the environment. They make their money from selling goods and services in the open market, but they reinvest their profits back into the business or the local community. And so when they profit, society profits.”

As a Labour Member of Parliament, I was interested to learn that it was the great social activist and researcher the late Lord Michael Young, author of my party’s 1945 manifesto, who 53 years later, in 1998, founded the School for Social Entrepreneurs. That perhaps reflects the fact that some of the best ideas for social improvement today come from the social enterprise sector.

Social enterprises are everywhere and can do almost anything. They are coffee shops, cinemas, pubs, banks and bus companies, to give but a few examples. Allow me, Mr Chope, to use the example of a social enterprise in my constituency: Splash Community Trust, which runs Splash Magic. That social enterprise was formed to reopen Plas Madoc leisure centre after Wrexham County Borough Council decided to close it in April 2014. The local community came together to save the facility, which the Splash Community Trust now runs for the benefit of the community. Splash Magic provides not only swimming and leisure facilities for the local community, but employment for local people, tackling health, employment and social problems. It is a great success story. This debate is about Splash Magic and every other social enterprise in our country, and how best we can support them.

[Jim Shannon (Strangford) (DUP)]

I thank the hon. Lady for raising this very important issue. She has outlined one example of how social enterprises can make a difference. Some 2 million people have been employed through social investment, and it contributes £55 billion to the economy and has helped many social ventures. Does the hon. Lady agree that more community groups and small charities need to be aware of the help that there is in accessing funds, such as the Big Lottery Fund and other charitable funds, and that they should not be put off by long, complex forms and in-depth requirements, and be left feeling unable even to apply for community-changing grants?

--- Later in debate ---

[The Minister for Civil Society (Mr Rob Wilson)]

It is always a pleasure to serve under your chairmanship, Mr Chope. I begin in the traditional fashion by congratulating the hon. Member for Clwyd South (Susan Elan Jones) on securing the debate. I welcome her interest in a very inspiring sector. She said it was quite dry, but I found her comments very interesting and I will come back to some of her ideas in due course. Her comments should not have been unexpected because, as she said, she chairs the APPG on charities and volunteering. The group recently held a session on social investment, which obviously proved to be interesting and has generated a number of ideas.

Social investment can drive innovation in the sector, as we heard from the example of Splash Magic in the hon. Lady’s constituency. It is a powerful tool to tackle some of the biggest challenges in society today and, in the case of her constituency, to tackle jobs and growth issues. Social investment helps economic growth by supporting the UK’s thriving social economy. It also supports social innovation by channelling funding towards entrepreneurial solutions to longstanding social problems, and helps public services by delivering better outcomes and, in some cases, savings to the taxpayers.

I have embarked on an ambitious reform programme for charities and social enterprises because it is my aim to deliver a sector that is more independent, resilient and sustainable over the long term, and much better able to meet the challenges that it faces. Since the general election, the Office for Civil Society has supported the creation of a new fundraising self-regulator. I know that is not directly relevant to social investment, but it is still important to raising money for charities, in particular. The new self-regulator is being led by Lord Grade, as the hon. Lady will know. It has the legislative powers needed to give the public confidence that fundraising scandals are a thing of the past, and is a chance to restore the public trust and confidence needed so that a generous public continue to donate to the causes that matter most to them.

The new Charities (Protection and Social Investment) Act 2016 gives the Charity Commission tougher powers to enable it to regulate the charity sector much more effectively. As the hon. Lady said, the new Act also clarifies the law on social investment, enabling smaller charities to have the confidence to get involved in this hugely beneficial area.

The UK is now recognised as a world leader in social investment. For example, we set up the world’s first social investment bank, Big Society Capital—the hon. Lady went into some of its history—and the first social investment tax relief, which I will talk about further. The first ever social impact bond was also in this country, so we have a lot to be proud of.

We also created Access, the Foundation for Social Investment, to which the hon. Lady did not refer. That has £100 million to support more organisations to take on and get ready for investment, helping to stimulate the pipeline of social investment deals over the next 10 or 15 years. We have made money available through the local sustainability fund, which was created to help organisations to secure a more sustainable way of working by providing funding and support to help them to review and transform their operating models.

[Jim Shannon]

In addition to what the hon. Member for Clwyd South (Susan Elan Jones) said in her speech, we also recognise the good work of the Big Lottery Fund. It is always good to recognise organisations that make a significant contribution to social investment, and the Big Lottery Fund enables that to happen. Does the Minister feel it is important to encourage and support that?

[Mr Wilson]

The Big Lottery Fund has some £700 million of grants at its disposal each year, and it is an important part of the funding landscape in this country. It does an awful lot of great work, and I encourage organisations that perhaps have not made funding proposals to the Big Lottery Fund in the past to do so now. The Big Lottery Fund is trying to do a lot to make it easier for organisations to get hold of grants and to ensure that it is focusing on some of the more disadvantaged areas across the United Kingdom.

Returning to my previous comments, I want the leadership that the Government have shown on social investment to continue. The Government are therefore supporting social impact bonds, as the hon. Member for Clwyd South said, and so far we have created 32 social impact bonds, which is more than the rest of the world put together. We have enormous experience of social impact bonds and the social impact bond market. SIBs work on the principle that the Government pay only for the outcomes that we want to see and that we agree should be delivered. Social investors provide the up-front investment to scale up innovative services and are repaid by the Government based on the outcomes delivered.

SIBs are being deployed to get to the heart of some of the biggest challenges that we face as a country. They often focus on things such as early intervention, which will help us to contain the ever-expanding demands on our public services. I recently visited the AIMS—accommodation, intense mentoring, skills—project of the Local Solutions organisation in Liverpool, which is supporting young homeless people into accommodation, training and employment. The programme allocates a trusted mentor to each young person to provide a single contact point, delivering personalised support across multiple services. The programme is financed via a SIB and is a great example of how commissioning for outcomes can give social sector organisations the freedom to do what is needed, when it is needed. SIBs help to foster genuine partnership between the Government, social sector organisations and social investors, supporting organisations that can innovate in ways that big government finds difficult. Perhaps most importantly, SIBs focus on delivering meaningful outcomes for people, and there is more to come.

As the hon. Lady will probably have picked up, the Prime Minister recently announced our new £80 million life chances fund, which is an important next step on the journey and will show how social investment can transform local public services. The fund is a down payment on a social impact bond market that I hope and expect to be worth £1 billion by the end of this Parliament. I want to see more social impact bonds and to support those who want to use this innovative source of capital, which is why we are working with the University of Oxford to create a new centre for excellence that will develop world-leading research in social impact bonds and innovative Government commissioning and will provide the practical support that local commissioners need as part of that process, but there is more to the market than social impact bonds.