Self-Employment

John Hayes Excerpts

Tuesday 24th January 2012 Westminster Hall

[Nick de Bois (Enfield North) (Con)]

I shall be brief. I intended to make two points, but I will now make only one, in the interest of enabling other hon. Members to speak. I want to talk about the role of education and of finance and how help can be provided to people. I fully confess to being heavily influenced by a constituent of mine, who has been working under the scheme led by Virgin Media. In the past year, she has taken steps to establish a competitive business. In fact, while she was at college, she was so entrepreneurial that she decided to use some of her student loan to help to fund the website that is driving her business. The entrepreneurial spirit is to be admired. I have no idea whether she was allowed to do that, so I will not name her, but it shows that with some lateral thinking, perhaps some of the young talent that exists can be put to good use.

I myself did not go to university. I went to a technical college in Cambridge, which I am told is now a university. The business studies course that I did was a sandwich course. It struck me that the only choice that I had during that sandwich course was to go to a placement that was put to me by the college, very helpful though it was at the time. Why cannot we set up an arrangement whereby we allow a sandwich year, even in a course of reduced time length, to become an opportunity for someone, under mentoring and guidance and with the ability to use student finance at their disposal, to take their first steps towards running a business?

If we think creatively, we can not only foster the educational and mentoring skills that are so vital; we could even allow people access to finance, perhaps on the same terms as those of the student loans scheme. I suspect that it would not be able to extend its remit to do that and we may have to look elsewhere for other sources of financing. However, if we are genuinely saying, “Let’s educate and let’s motivate,” and we have students who are showing character and willingness by seeking out the courses, there could be a useful match with an existing system in order to help them. At the end of the day, the payback to them as individuals will be substantial—the payback to the economy will be vital.

I therefore ask my hon. Friend the Minister to give the initiative that I have described some consideration and not to lose sight of something that we all too glibly talk about—

[The Minister for Further Education, Skills and Lifelong Learning (Mr John Hayes)]

I have given that some consideration and I am grateful to my hon. Friend. I think we will do it. I think it is a very good idea and I will ask my civil servants to work something up.

[Nick de Bois]

I say, when you’re ahead, quit. I thank the Minister.

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[The Minister for Further Education, Skills and Lifelong Learning (Mr John Hayes)]

It is a pleasure to serve under your chairmanship, Mr Streeter, and to speak in this important debate, to which there have been many valuable contributions. I do not want to be excessively partisan—as you know, I regard it as vulgar—but it is noticeable that this debate has been dominated by my party, the party of business. It must be slightly disappointing for the shadow Minister that he has been so poorly served by his own Back Benches. There is almost no one here to support his—I was going to say oratory, but I do not want to overstate the case.

Ezra Pound, the great poet, said that genius is the capacity to see 10 things where an ordinary man sees only one, so I shall try to make 10 points in response to what has been said in this debate. Education was mentioned in the introductory remarks of my hon. Friend the Member for Watford (Richard Harrington), whom I congratulate on securing this debate. He led it with style and acumen, making a strong point about the importance of education, of ensuring that young people are imbued with a sense of enterprise, which permeated several Members’ contributions, and of countering the prevailing prejudice against business.

[Justin Tomlinson]

Will the Minister give way?

[Mr Hayes]

No, will not, because of time. Forgive me. Chesterton said that those who were impatient enough to interrupt the words of others seldom have the patience to think of good words themselves. I put on record that that is not true of my hon. Friend, but just in case, I will not give way.

My hon. Friend the Member for Selby and Ainsty (Nigel Adams) spoke about the importance of finance. My hon. Friend the Member for Nuneaton (Mr Jones) discussed enterprise and small business, and what a champion he is for the small businesses of Britain. My hon. Friend the Member for Wyre Forest (Mark Garnier) spoke about tax and the importance of having the right tax regime. My hon. Friend the Member for Maidstone and The Weald (Mrs Grant), who is no longer in her place, made a useful contribution on information about careers. My hon. Friend the Member for Montgomeryshire (Glyn Davies) made a point about the disproportionate effect of regulation on very small businesses. My hon. Friend the Member for Selby and Ainsty also mentioned skills, my hon. Friend the Member for Newton Abbot (Anne Marie Morris) mentioned mentoring and my hon. Friend the Member for Meon Valley (George Hollingbery) discussed the communal value of business. I think that I have covered most of hon. Members’ contributions. If I have not, I apologise. They were all immensely valuable, and are valued by the Government.

It is important to recognise the critical role that small business in particular plays in our economy. As an expert on these matters, Mr Streeter, you will know that small and medium-size enterprises are a crucial engine for growth and are critical to our national economic success in every sector. Together, they are responsible for almost half the private sector’s £900 billion output and 60% of private sector jobs. Since 2000, the 31% increase in businesses has been driven entirely by SMEs. Small business is the backbone of our nation and the driver of innovation. It is the embodiment of enterprise, because it is in start-up businesses that ideas have their genesis and subsequently germinate. Every business starts as a small business.

Politely—almost flatteringly—several Members referred to my own business career. I was lucky in business. All success in business is a combination of good luck and good judgment. I entered the IT industry when it was growing; what a great place it was to be in the 1980s. I learned there that politicians must be sensitive to the needs of business. They particularly need to understand that by and large, businesses want politicians to get off their back and on their side. The Government play their part through regulation, the tax system, information, support and pump-priming, but they must step back to let business thrive.

Having said that, I will mention the 10 things that Government can do, in the six minutes available to me. First, we are focusing on education. We are establishing an enterprise village website, which we will develop further, enabling teachers to access free online resources to assist them in developing school businesses. Secondly, on the “inspiring the future” website, we have made more information available about business and business education to at least 2,500 local enterprise champions and role models.

Thirdly, the National Association of College and University Entrepreneurs, which was mentioned in the debate, is building sustainable national infrastructure to develop and drive forward student enterprise societies across higher education institutions and further education colleges. I expect about 90 universities and 160 FE colleges to be involved in that initiative. Fourthly, reducing the small profits rate from 21% to 20% from April 2011 and reversing the previous Administration’s plans to raise the rate to 22% will undoubtedly help business.

Fifthly, we have increased the national insurance contributions threshold for all employers by £21 a week above indexation from April 2011, reversing the previous Government’s plan, which I think the hon. Member for Chesterfield (Toby Perkins) failed to mention because he is embarrassed about it. He is a decent and honest man, so I can understand his embarrassment, and I will not dwell on it further.

[Toby Perkins]

Will the Minister give way?

[Mr Hayes]

No, I cannot, because of time.

Sixthly, the Government also know that ensuring the flow of credit to viable small businesses is essential and a core priority for the Government. We want to ensure that the financial sector can supply the affordable credit that businesses need, and we would like to see more sources of credit and finance. I accept that banks have a role, but other organisations need to play their part too.

Seventhly, in April, we will launch a new seed enterprise investment scheme to encourage investment in new start-up companies. Eighthly, at the same time, we are launching two new Business Link services with an additional investment of £1.2 million and a new initiative to recruit and train 15,000 volunteer business mentors, which numerous people have welcomed during the debate.

Ninthly, as I am sure you know, Mr Streeter, the Government have placed great emphasis on start-up Britain. This is the year of enterprise. We want everyone to know what is happening in the UK, to promote enterprise and to give young people who wish to set up a business access to diverse sources of finance. We want to support SMEs with improved information and streamline the process by which they and others can get the knowledge and information that they require to set up their business.

Tenthly, the introduction of a national loan guarantee scheme to help businesses raise funds from non-bank sources, the £1 billion finance partnership to invest in medium-sized businesses and SMEs, the continuation of the enterprise finance guarantee scheme, a new export enterprise finance guarantee scheme, the continuation of the Government’s enterprise capital funds programme and, of course, the encouragement of the business angels scheme that we established will give businesses the boost that they need.

What has been repeated in speeches throughout this debate is that we need to change the culture to one that recognises that business has not only a communal role in delivering the growth that we need to prosper but also a vital role in enabling many of our citizens to achieve their potential to be the best they can be and, through that role, to create jobs and growth, seeding recovery in every community in Britain. The problem in Britain is not that none of that exists; far from it. We know from our constituencies and our personal business experience that that spirit exists. The problem is creating circumstances that allow it to thrive.

In those terms, the contrast between this Government and the last is profound. There is no doubt that the last Government were starry-eyed about the glitz and glamour of money, but it is clear that they were blind to the needs of small business and enterprise in particular. I hope that there has been a change, as the hon. Member for Chesterfield said. My hope is that we can understand throughout the House that business is virtuous, because it builds jobs, sustains growth and fuels healthy communities. My business is the promotion of growth, and my mission is the pursuit of the common good. It is clear that in that mission, I have the support of many colleagues in my party and throughout the House who share my enthusiasm for British business and my determination that business will prosper under this Government.

Oral Answers to Questions

John Hayes Excerpts

Monday 16th January 2012 Commons Chamber

[Mr Don Foster (Bath) (LD)]

1. What steps he is taking to promote arts and creative education in schools.

[The Minister for Further Education, Skills and Lifelong Learning (Mr John Hayes)]

The Government believe that children’s education is enriched through their connection with the beauty provided through the arts. To support this mission, we invited Darren Henley, the managing director of Classic FM, to undertake a review of cultural education in schools and he is due to report shortly. As you know, Mr Speaker, in November we published a national plan for music education worth £200 million over three years.

[Mr Foster]

I am sure the whole House is looking forward to the Henley review, but does the Minister acknowledge that the expert panel on the curriculum review is concerned that the role of cultural and creative subjects in a broad and balanced curriculum is in danger of being lost? Given the significant reduction in postgraduate certificate in education art and design places and the lack of any cultural subjects in the English baccalaureate, is it not right to be concerned?

[Mr Hayes]

The right hon. Gentleman will know that the E-bac—the core curriculum that we are developing—is sufficiently small to allow space for all kinds of other activities, including those relating to music, art and culture, as well. Certainly, it is the view of the Secretary of State and the whole Government that enriching a child’s education through their experience of art, music and culture is at the heart of good education.

[Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)]

My constituency is one of the hotbeds of creative activity with a very high percentage of artists and creative businesses, and the schools have followed that through. However, I know from recent visits to primary schools such as Brook community primary school, which has excellent enrichment through the arts, that they are worried about future funding and are already having to make cuts in those areas. Will the Minister explain what the Government’s financial policy is to back up the warm words he just uttered?

[Mr Hayes]

I mentioned in my first answer the commitment we have made to music. The important thing about that commitment is that we have been very clear over the long term about what schools can expect to receive, and that will help with financial planning. The new music education hubs will help to bring this together. That recommendation very much arose from the original investigation we did. Art is not the study of positive reality; in Ruskin’s words, it is “seeking for ideal truth”. It is that spirit that imbues all this Government do.

[Oliver Colvile (Plymouth, Sutton and Devonport) (Con)]

Plymouth’s excellent college of art is looking at trying to develop and create a free school aimed specifically at bolstering the arts economy and improving participation in the arts. Would my hon. Friend be willing to meet me and fellow representatives from the college of art to discuss how it can ensure that aspiration becomes reality?

[Mr Hayes]

Any meeting with my hon. Friend always adds to my grasp of these matters; of course I will happily meet him. It is clear from his question that he shares our view that having a richer mix of school types will allow the development of precisely the expertise he describes.

[Fiona Mactaggart (Slough) (Lab)]

Britain is a world leader in creative and cultural industries, but at the moment we are seeing in our schools a reduction in music, art and other teaching. Whatever warm words the Minister offers, what is he going to do about it?

[Mr Hayes]

The hon. Lady will know, because she is a diligent student of these matters, that this Government established a council specifically to look at the creative industries. I have met that council to discuss how we can work with it to improve links between the creative industries and schools and colleges. She will also know that we have allocated in my area specific funding with that council to develop new courses, new apprenticeships and new opportunities with creative industries.

[Annette Brooke (Mid Dorset and North Poole) (LD)]

2. What his policy is on the sale of school playing fields; and if he will make a statement.

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[Mr Peter Bone (Wellingborough) (Con)]

8. What steps his Department is taking to raise awareness in schools of domestic and international human trafficking.

[The Minister for Further Education, Skills and Lifelong Learning (Mr John Hayes)]

Tackling human trafficking is a key priority for the Government. Last October the Department for Education and the Home Office issued updated practical guidance on safeguarding children who may have been trafficked. This will help practitioners, including school staff, identify children who may have been trafficked and find support and advice. Schools may also cover human trafficking within personal, social, health and economic education if they judge that topic to be relevant to their circumstances.

[Mr Bone]

I congratulate the Government on what they have done so far, but there are a number of non-governmental organisations and charities that would like to go into schools to make pupils aware of human trafficking, the evil of modern-day slavery, and particularly internal trafficking within the United Kingdom. Would the Minister welcome such moves?

[Mr Hayes]

My hon. Friend has a noble record on this subject, as co-chairman of the all-party group alongside the hon. Members for Slough (Fiona Mactaggart) and for Liverpool, Riverside (Mrs Ellman), and the former Member, Mr Anthony Steen. My hon. Friend’s suggestion is most welcome. He is right. I wrote in 1998 that there is no doubt that human trafficking is today’s slave trade and that we will not rest until it is dealt with. I will write to charities as my hon. Friend suggests and invite them to do precisely what he proposes.

[Mr Speaker]

I am sure we would all in any case have remembered the precise phrasing of what the Minister of State wrote in 1998, and I cannot imagine why he would suppose otherwise.

[Lisa Nandy (Wigan) (Lab)]

Despite efforts to improve awareness, many trafficked children still wrongly believe that their trafficker is their friend. Given that the Minister has rejected the idea of guardianship for trafficked children, can he tell me who is able to instruct a child’s lawyer in cases where the child is too young, too confused, too traumatised or too afraid to do so themselves?

[Mr Hayes]

The hon. Lady will know that local authorities retain their responsibilities in this regard and, indeed, allocate a responsible person to deal with such children. I am aware of continuing doubts and problems concerning children being re-trafficked. Indeed, my hon. Friend the Member for Wellingborough (Mr Bone)—he was too polite to mention this—wrote to the Secretary of State on this subject only a couple of days ago. We will look closely at bringing what the Department does into line with Home Office and local authority practice. We should not rest until this matter is addressed, and we will not rest until children are freed, victims are protected and those who trade in pain and persecution are made to suffer.

[Mr James Gray (North Wiltshire) (Con)]

9. How many special schools have converted to academies in (a) North Wiltshire constituency, (b) the south-west and (c) England since May 2010.

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[Brandon Lewis (Great Yarmouth) (Con)]

15. What progress his Department has made on work to reduce the administrative burden on teachers.

[The Minister for Further Education, Skills and Lifelong Learning (Mr John Hayes)]

The Government are committed to reducing the administrative burden on schools. We have removed the lengthy self-evaluation form, introduced a streamlined inspection framework, removed unnecessary duties and regulations in the Education Act 2011, and cut the volume of guidance issued to schools by a half. We are reviewing all requirements on schools so that they can focus on raising standards, rather than on unnecessary administrative tasks.

[Brandon Lewis]

Many young people study in FE colleges. Places such as Great Yarmouth college have made great strides forward with clear and decisive leadership. Will my hon. Friend therefore also outline what progress the Government are making in reducing the administrative burden for colleges?

[Mr Hayes]

I am always reluctant to list my achievements in this House, as you know, Mr Speaker, at least more than is necessary to keep the House informed of the scale and scope of the progress we are making. Suffice it to say that from June 2010, when I let colleges move funding between adult learner budgets, through the reduction in duties imposed on schools by the previous Government, up to the Education Act 2011, which gives still greater freedoms, we have sought to treat further education as grown up, after it was infantilised by the previous Government.

[Mr Speaker]

I am grateful for the Minister’s self-denying ordinance, given the imperative that answers be brief.

[Mr Edward Leigh (Gainsborough) (Con)]

The Government are to be congratulated on reducing administrative burdens on teachers. Does my hon. Friend, and actual friend, agree that the way to improve standards in the state sector is for it to replicate what goes on in the independent sector? We should allow head teachers to hire and fire teachers, select their own curriculum, and select and deselect pupils.

[Mr Hayes]

What we seek is a system driven by demand, pupils who are helped to make informed judgments by the information that they are given, businesses driving the skills system, and head teachers and college principals being free to respond to local needs. That is our mantra and it is entirely in line with my hon. Friend’s intentions and ambitions.

[Steve McCabe (Birmingham, Selly Oak) (Lab)]

16. What assessment he has made of the effect of the closure of the General Teaching Council on the ability of teachers subject to disciplinary proceedings or sanctions to seek redress.

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[Sajid Javid (Bromsgrove) (Con)]

T9. British banks employs hundreds of thousands of people and many of them are hard-working young people. Does the skills Minister agree that it would be a fantastic achievement to see an apprentice in every branch of every high street bank, and what can he do to help achieve this?

[The Minister for Further Education, Skills and Lifelong Learning (Mr John Hayes)]

There are few greater champions of apprenticeships or learning in this House than my hon. Friend, although I notice my hon. Friend the Member for Gloucester (Richard Graham) sitting next to him, and he is just as worthy a champion. Just this week I will meet banks to discuss exactly what my hon. Friend the Member for Bromsgrove (Sajid Javid) proposes. It is right that apprenticeships are seen as a route into the professions, and we will make them just that.

[Ann Coffey (Stockport) (Lab)]

Stockport council estimates that it is notified of only 60% of looked-after children placed in the borough by other authorities. This is not a problem specific to Stockport and, as the Minister will appreciate, it is very difficult for authorities to plan the provision of resources that will achieve better outcomes for children in care without adequate information. What more can he do to make local authorities meet their obligations?

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[Mr Andrew Turner (Isle of Wight) (Con)]

The Minister is well aware of my support for steps taken to prepare young people for apprenticeships and the world of work, but is he aware that an arbitrary decision about payments due for academic work undertaken in apprentices’ own time towards their qualification might threaten the ability and willingness of small employers, such as Amazon World in my constituency, to take them on?

[Mr Hayes]

I am aware of the specific issue my hon. Friend raises. I understand that the problems arose under the stewardship of a Minister in the previous Government, but none the less there are ongoing repercussions and I am happy to consider the specific matters raised by my hon. Friend. He will know that there are now national minimum standards as there is a national wage for apprentices and it is absolutely right that the deal an apprentice gets should be fair and proper.

[Ian Austin (Dudley North) (Lab)]

A university technical college for Dudley would not only transform the education available in the town but help address the skills shortage and rebalance the economy while encouraging young people to pursue careers in high-tech manufacturing. I am sure that the Secretary of State will be as pleased as I am that a bid has now been submitted for the Aston university technical college in Dudley. Will he take this bid from me today and ensure that it is approved as early as possible so that we can get the changes made that we need in Dudley?

Further Education Skills Funding

John Hayes Excerpts

Thursday 12th January 2012 Written Statements

[The Minister for Further Education, Skills and Lifelong Learning (Mr John Hayes)]

Following publication of the annual skills investment statement for the 2012-13 academic year by the Department of Business, Innovation and Skills on 1 December 2011, the Skills Funding Agency issued 1,030 initial funding allocation statements, announcing recurrent funding allocations to FE colleges and other skills providers in England, on 16 December.

The allocations in question total £2.3 billion, which includes the largest ever allocation of funding to support apprenticeships.

Some providers will be able to access additional funds not included in the initial funding statement. These include initial additional learner support and discretionary learner support allocations, which will be issued on 27 January 2012. Initial 16 to 18 apprenticeships programme allocations and adult safeguarded allocations have also still to be issued.

Final funding statements for all budget lines for 2012-13 will be issued on 30 March 2012.

The Skills Funding Agency and the Young People’s Learning Agency will monitor the impact of funding allocations.

Capital funding allocations for the £100 million two-year FE college capital investment programme, which I announced in August 2011, were confirmed by the Skills Funding Agency on 21 December.

All FE colleges in England were eligible to apply for capital renewal grant funding, which they could spend on urgent capital works, or on the fees associated with developing enhanced renewal grant applications.

A total of 244 FE colleges across England were each successful in securing up to £100,000 in renewal grant funding. In addition, 46 of these were also successful in securing enhanced renewal grant funding of around £1.9 million, taking their total grant funding up to £2 million.

A further 19 colleges met the required quality thresholds but could not be funded on this occasion. I have asked officials of the Skills Funding Agency to continue to work with the colleges concerned to consider how these projects might be helped to proceed.

This latest programme builds upon the Government’s previous FE capital investments, including the £50 million college capital investment programme which provided 154 eligible colleges with a renewal grant of up to £225,000 each. Of these, 21 also secured enhanced renewal grant funding of up to £775,000 taking their total funding to £1 million.

The programme also builds upon the additional £25 million that we made available to 239 eligible FE colleges through the capital works grant.

The grand total of Government’s capital investment through these programmes of £175 million is expected to leverage over £525 million in total project funding.

Skills Funding and the Skills Funding Agency (Chief Executive)

John Hayes Excerpts

Tuesday 20th December 2011 Written Statements

[The Minister for Further Education, Skills and Lifelong Learning (Mr John Hayes)]

Further to my announcement on 1 November, I would inform Parliament about the outcome of the review into the status of the chief executive of skills funding and the Skills Funding Agency.

The review has concluded that the existing arrangement of a statutory post holder should be replaced with a more traditional Executive agency model. This is consistent with the Government’s wider commitment to improve radically the transparency and accountability for all public services, providing clarity and focus to the work of the agency and ensuring that skills and apprenticeship programmes are delivered within an overarching strategic framework set by Government.

The Skills Funding Agency will continue to play a vital role in funding the education and skills training that our country needs to tackle the very real challenges that lie ahead; and the outcome of this review reflects the Government’s ongoing commitment to building on the strength of the further education system, while ensuring rigorous accountability structures are in place.

I can confirm that both the Skills Funding Agency and wider stakeholders have been fully engaged in the review process, and I will be writing to them today about the outcome of this work.

We will bring forward legislation for this change as and when parliamentary time allows.

Apprenticeships

John Hayes Excerpts

Monday 19th December 2011 Commons Chamber

[The Minister for Further Education, Skills and Lifelong Learning (Mr John Hayes)]

I beg to move,

That this House has considered the matter of apprenticeships.

Mr Speaker, the other element is skills—but my skills could never be as great as your own, I hasten to add.

The guitarist Chet Atkins once said:

“A long apprenticeship is the most logical way to success. The only alternative is overnight stardom, but I can’t give you a formula for that.”

Mr Speaker, you and I know, along with others, that long apprenticeships in public service can bear out the first part of that sentiment. On overnight stardom, I say only that the hon. Member for Streatham (Mr Umunna), the new shadow Business Secretary, will no doubt enlighten us on some future occasion.

Mr Speaker, you and I have no wish for this debate to become an exercise in party political tergiversation alone. There is no need for unnecessary contumely, and no need for more criticism of Opposition Members than that which is necessary to, by contrast, highlight the extent of our achievements.

There are many on the Opposition Benchers whose commitment to apprenticeship training is deep and sincere, and I recognise that the previous Government did indeed invest in apprenticeships—certainly towards the end. It is also fair to point out that there was a rise of almost 50,000 in the number of apprentices aged over 25, so, despite some things that we have read recently, the growth in older apprentices is a trend change that has been taking place over a number of years.

Indeed, the previous Government recognised, as you will know Madam Deputy Speaker, in the Leitch report on skills, which they commissioned, that such growth in the skilling of older workers was essential to keep pace with our competitors by upskilling and reskilling the existing work force.

Above all, I know that Members on both sides of the House recognise that apprenticeship training is a sure way to success. The all-party group on further education, skills and lifelong learning recently called for the creation of a “Royal Society of Apprentices” as a means of raising the profile of what many of us believe is our most effective form of vocational training, and I will, I am pleased to tell the House today, take that proposal forward.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

The Minister knows and is quite right that all Members are in favour of apprenticeships, but we are in favour of quality apprenticeships. When I was Chair of the Education and Skills Committee, I discovered that too many apprenticeships lasted only one year and very many did not lead to a secure job. There are now 1 million unemployed young people, and some of us believe that 6% of young people going into apprenticeships is not enough. We need new efforts to get more people apprenticeships now.

[Mr Hayes]

The hon. Gentleman has been a long-standing advocate of apprenticeships, and he rightly draws attention to previous Select Committee reports on the subject. He highlighted those reports in the Chamber on more than one occasion when I was present, and he is right in two particular respects: first, it is important that we focus apprenticeships on where they are of most value, and there is more evidence to suggest that they are of most value to young people between the ages of 16 and 24; and, secondly, it is important that we are relentless in our drive for quality. He is right, too, that as we increase the quantity of apprenticeships there will be a tension with quality, but I shall say a great deal more today about the steps that we have taken and the future steps that we propose to take to achieve just that ambition.

Having said that there is a broad measure of agreement, a point echoed by the hon. Gentleman, I should say, first, that the difference between us and the previous Government is that we have made apprenticeships the pivot around which the rest of the skills system turns. Secondly, we have made them fill a bigger space than ever before. Finally, we have put in place an unparalleled level of funding to support our single-minded aim to create more apprenticeships than modern Britain has ever seen. It is important to point out that that growth has not been only in traditional craft apprenticeships, but in the new crafts too—advanced engineering, IT, the creative industries and financial services.

Why, people might ask, do we put such an emphasis on apprenticeships? It is not just that apprenticeships work, although they do, or that an apprenticeship is probably the most widely recognised brand in the skills shop window, although it is; it is also about what apprenticeships symbolise—the passing on of skills from one generation to the next and the proof that that offers that learning by doing is just as demanding and praiseworthy as learning from a book. As William Morris said, all art and craft is

“the expression by man of his joy in labour”.

It is my ambition to dispel once and for all the myth that one can gain accomplishment only through academic prowess. The sense of worth that people gain through the work of their hands—through practical, technical and vocational skill—needs to be recognised, just as we recognise academic achievement.

It is that sense of apprenticeships as the embodiment of a continuum that guarantees their place at the heart of my vision for skills. I hope that, like me, hon. Members on both sides will welcome the provisional figures that show that, in the academic year that has just finished, nearly 443,000 people started an apprenticeship in England.

[Mr Andrew Turner (Isle of Wight) (Con)]

Will my hon. Friend join me in congratulating HTP Training, an Isle of Wight apprenticeship provider, and its managing director Rachael Fidler? Most notable is its successful apprenticeship completion rate of 87%—significantly higher than the national average of 74%. Does my hon. Friend agree that none of that would have been possible without the Government’s help and support?

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[Mr Hayes]

That is the kind of testing question and penetrating intervention that I expected during this debate. None the less, it was most welcome, and from a Member who never ceases to represent his constituents in the Isle of Wight with vigour, verve and absolute integrity. His support for apprenticeships has been critical in delivering the 100% increase in Isle of Wight apprenticeship numbers to which he has drawn the House’s attention.

[Mr Sheerman]

Some of us sometimes try to get the Minister to be cross with us because he is always so polite and always strokes the feathers of everyone who asks him a question. However, I have to put it to him again: we all know that apprenticeships are something of a fig leaf for the Government. One million young people are unemployed and the Government keep pointing to what I call the fig leaf of apprenticeships.

Will the Minister stop weaving the myth that they are all three or four-year apprenticeships leading to secure jobs? What is the average length of an apprenticeship today? That is the crucial thing. I think that the Minister is going to have to say that it is about a year. Is that the truth? That is what the public want to know. What quality and length are the apprenticeships of which he is so proud?

[Mr Hayes]

The hon. Gentleman is renowned for his insight, and I had thought until today that he was equally renowned for his patience. I said that I would deal with quality and I assure him that I will also deal with the length of apprenticeships. I think he is right. Although there is no direct, guaranteed link between the length of an apprenticeship and its quality, there is a relationship. It is not a direct correlation, but it is a correlation none the less.

Today I will set out my demands for a minimum length for apprenticeships. That is perfectly reasonable. As I said, it is not a guarantee of quality, but it will certainly offer considerable assurance to the hon. Gentleman and others who, like me, are determined that quality should match quantity. The hon. Gentleman has, over many years, supported my view that technical education is critical not merely because it serves an economic function—because of its utility—but because of what it does for social mobility and social cohesion. Drawing on his patience and insight once again, I ask the hon. Gentleman to wait a few moments. I shall be speaking about the issue at considerable and eloquent length.

The figures that I cited show that numbers were up by more than half in the 2009-10 academic year. I want to make the point firmly that that includes an increase of about 10% in the number of apprentices under 19. I remind hon. Members that that Government achievement has been completed not merely because of our concentrated effort and the funding that we have put in place, although that is critical, but thanks to the work of further education colleges and other training providers, businesses coming forward and creating apprenticeship places, and learners and their families seizing the opportunity with both hands. The real credit lies with the learners, the training organisations and the businesses that allowed that expansion in the apprenticeship programme to take place.

[Richard Harrington (Watford) (Con)]

SQI in Watford offers 10-week apprenticeship courses followed by 10-week placements. They lead to 85% of those taking part being in permanent employment. I do not think that the length of an apprenticeship is everything.

[Mr Hayes]

My hon. Friend has a lot to be pleased about in respect of apprenticeships; as he will know, in his constituency their number has grown by 98%. I did say that I did not think there was an exact correlation between quality and the length of a course, but I think there is a relationship. By setting down a marker about the minimum length of an apprenticeship, we will drive up quality. We will certainly reassure those who are genuinely committed to the apprenticeship programme, but have doubts about the tension between quality and quantity, that we are serious about standards. That matters.

I take my hon. Friend’s point. It may be possible, particularly for older learners with greater prior attainment, to top up skills—perhaps they are moving from a level 2 to a level 3 qualification, or they already have many of the skills necessary to gain their first level 2 qualification. None the less, I still think that length matters.

I should like to put the debate in context, Madam Deputy Speaker; you would expect me to do no less. The Government’s macro-economic policy is built on twin pillars—reducing the deficit and reshaping our economy to make it more sustainable. That second core aim is served by the apprenticeship programme, because it assists in recalibrating work force skills so that productivity rises and competitiveness grows. Britain’s future chance to prosper lies in a high-tech, high-skill economy and to prosper in that way we need a high-tech, high-skill work force.

The recent announcements of reform to the programme concentrated on three areas key to the programme’s continued expansion and success: how to get more employers involved in offering apprenticeships; how to ensure that apprenticeships continue to offer people, especially young people, a firm first step on the ladder that leads to fulfilling careers and further learning; and how we ensure that the money that we spend on apprenticeships has the greatest success.

In the end, apprenticeships are jobs and the programme is demand-led. That means that the growth depends on employers coming forward to make places available. In the current economic climate jobs are in short supply, notably for young people, so the record increase in apprenticeship numbers is remarkable. Hon. Members will join me in commending the 100,000 employers that are using apprenticeships to develop work force skills—helping their businesses, but also providing opportunities for people across this country to grow their skills and improve their prospects.

Our work to recruit more employers to our cause goes on. Only this morning, I was at No. 10 Downing street briefing major employers on what apprenticeships can do for them. They were as committed to spreading opportunity and to social justice as I am.

Our objective is to improve and strengthen the programme even further so that more individuals and employers can access the benefits of high-quality apprenticeships. Overall, employer ownership of vocational skills is the key to our approach. This ambition informs all our priorities in moving forward: first, by reducing bureaucracy to an absolute minimum, speeding up processes and boosting employer engagement; secondly, by safeguarding quality, raising standards, and enhancing the reputation of the apprenticeship brand; and thirdly, by focusing future growth where the returns and benefits are greatest, including growth sectors of the economy, small and medium-sized enterprises, young people and new employees.

SMEs tell us that they still face considerable hurdles in taking on apprentices, and we have taken a serious look at what we can do to help to remove the barriers that they face. This has rightly been raised on the Floor of the House by Members on both sides and in all parties. I can announce today that, first, we will bring reduce to one month the time it takes for an employer to advertise an apprenticeship vacancy, including identifying the provider and completing an agreement on a training package between the employer and the provider; and secondly, we will remove all health and safety requirements that go beyond what health and safety legislation requires. From 1 January, employers that meet the Health and Safety Executive’s requirements as set out in “Health and safety made simple” will be deemed to provide a satisfactory level of compliance. We will also work with the insurance industry to encourage an approach that is proportionate to risks, and with training providers to develop new service standards for supporting SMEs to be included in all contracts for apprenticeships delivered from March 2012.

In addition, we are committed, in a significant new pilot programme, to taking radical steps to give businesses direct access to up to £250 million of public funding for training and apprenticeships over two years. This pilot is a key part of the Government’s growth review. It will route funding directly to businesses, will be more efficient than current arrangements, and will give businesses real purchasing power in the schools marketplace to secure the support that they need.

[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

Will the Minister give way?

[Mr Hayes]

I happily give way to the Chairman of the Business, Innovation and Skills Committee.

[Mr Bailey]

I thank the Minister for his customary courtesy in giving way. I welcome the announcement about provider and employer engagement, and speeding that up, but will he clarify whether there are any restrictions regarding a member of a board of a provider company being precluded from being a member of a board of a user company?

[Mr Hayes]

The answer is that I do not know; in these circumstances, it is always right to be straightforward. Because I know that the hon. Gentleman takes these matters seriously and is committed to getting this right, as I am, I will take his point away and look at it. He is arguing that there might be a conflict of interest in terms of provider and employer, and he is right to say that there should be a proper separation. However, as he will know, it is often the case in large companies that the training wing of the company provides the pedagogy associated with an apprenticeship while the apprentice is engaged in the work-based training in the same company, though in a different part of it. I would qualify his query with that caveat. None the less, I will take another look at the subject and will be more than happy to respond to him directly.

The pilot that I described will involve employers being asked to demonstrate how public funding will be used to leverage private investment and commitment to raising skill levels in their sectors or supply chains. As we grow the apprenticeship scheme, it is very important to take advantage of the value chains associated with our major corporates—their supply chains and their distribution chains, where they exist. Typically, Governments have spent insufficient time considering how that might work in the light of the well-established nature of those relationships and the dependence of large organisations on myriad smaller companies, the fragility of which, by their very nature, is possibly injurious to the interests of those corporates.

For example, major suppliers in the automotive industry tend to have very large numbers of organisations with which they deal commercially in their locality, some of which are vital to the effectiveness of such large organisations. It is vital, in their interests and in ours, that we do more to ensure that those relationships allow us to grow the apprenticeship system within SMEs. It may be of value for large companies to absorb some of the bureaucracy and some of the cost, and certainly to absorb some of the management associated with seeding apprenticeships in their value chain. Bidding for the employer-led pilot will formally be launched in the new year.

Above all else, my advocacy of practical learning and my faith in apprenticeships are driven not by economic imperative—not merely by utility—but by social purpose. I said earlier that for too long the myth that only through academic accomplishment can a sense of worth be achieved has been perpetuated by those who themselves have travelled a gilded path to academia. Now it is time once again to recognise what Ruskin and Morris knew—that all those with practical tastes and talents, with technical vocational aptitudes, deserve their chance of glittering prizes too. This is not just because of the relationship between craft and beauty and, in turn, between beauty and truth, but because for society to cohere we must promote the common good through a shared appreciation of what each of can achieve. All feel valued when each feels valued. Given that inequality is the inevitable consequence for a free economy in a free society, only through social mobility can a communal sense of fairness be achieved. A society that is unequal and rigid is bound to be unable to secure the ties of shared identity, as invisible and yet as strong as the heartstrings of love.

[Mr Sheerman]

The hon. Gentleman and I share a great admiration for the poet John Clare. I am still waiting for a quotation from John Clare, who lived very near his constituency.

May I bring the hon. Gentleman back to the false dichotomy that comes through insidiously in his honeyed words—namely, that there is one group of people going into academia and higher education and a more worthy group going into apprenticeships and more practical learning by doing? This September, 36% of people went into higher education and 6% went into apprenticeships; we want him to talk about the 58% who went in neither direction.

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[Madam Deputy Speaker (Dawn Primarolo)]

This is the season of good will, so I am pleading for good will from hon. Members in making short interventions. I remind everybody in the Chamber that this is a very heavily subscribed debate with a time limit on speeches that may, at this rate, have to be shortened for each speaker. In the interests of good will, perhaps we could make sure that all hon. Members get to speak tonight.

[Mr Hayes]

Yes, Madam Deputy Speaker; I must not allow my legendary generosity to prevent Members from contributing to this debate.

To the hon. Member for Huddersfield (Mr Sheerman) I say:

“I loved thee, though I told thee not,

Right earlily and long,

Thou wert my joy in every spot,

My theme in every song.”

That is by the people’s poet, John Clare. I believe that the hon. Gentleman saved John Clare’s home with the involvement of a social enterprise. We share a passion for the people’s poet, as we share a passion for the welfare and interests of the people. It is just a pity that I am in the people’s party and he is not.

With so many people currently not in employment, education or training, we must do more to extend the ladder of opportunity—the point that the hon. Gentleman is making. It is absolutely vital that in getting apprenticeships to fill a bigger space, we not only allow them to redefine our sense of what we understand as higher learning—I shall speak about that, too—but use them as a vehicle to allow for re-engagement of those who are currently unable to contribute in the way that we both want them to by getting a job, keeping a job, and progressing in a job. Through our access to apprenticeships programme, which we piloted as a result of my determination to do exactly what the hon. Gentleman described, I believe that we can provide just such a vehicle to get those who were failed by the system the first time around and who do not have sufficient prior attainment on to a level 2 course.

The drive for greater quantity must be matched by a determination that quality will grow in tandem. First, we will strengthen the English and maths requirements for apprentices who have not yet achieved a level 2 qualification. Those subjects remain essential for long-term employability and progression, so from the 2012-13 academic year all apprenticeship providers will be required to provide opportunities to support apprentices in progressing towards the achievement of level 2, GCSE or functional skills qualifications. They will be measured on their success in so doing.

Secondly, we will launch a rapid employer-led review of apprenticeship standards to identify best practice, ensure that every apprenticeship delivers the professionally recognised qualifications that employers need, and ensure that the Government are maximising the impact of public investment.

[Andrew Griffiths (Burton) (Con)]

Does the Minister share my concern that the new requirement for maths and English to be part of the apprenticeship course might deter some of the NEETs—those who are not in education, employment or training—we are trying to get into apprenticeships from taking part in such schemes? Does he believe that we need additional support to help underachievers who do not have the required attainment in maths and English to achieve it so that they can get on to an apprenticeship scheme?

[Mr Hayes]

My hon. Friend will know that in his constituency of Burton, apprenticeship numbers have risen by 76%. He will know, too, that that rise is due to the excellent work of his local further education college, with which I have had regular dealings.

My hon. Friend is right to argue that it is important that we take account of those who do not have the prior attainment to get on to a level 2 qualification. That is precisely the point that I was making a few moments ago, when I spoke about pre-apprenticeship training. To be clear, I said that those achieving a level 2 qualification must meet the standards in maths and English. There is an absolutely proper argument that we need steps on the ladder before people get to level 2, to allow for the re-engagement of those who are currently not able to get a job.

Thirdly on quality, we will continue to raise quality through consumer empowerment and transparency by improving employer and learner access to objectives and comparable information on providers.

I can also announce today additional steps that I am taking to raise the bar of apprenticeship standards even higher and to root out poor quality where it exists. All apprenticeships should involve a rigorous period of learning and the practice of new skills. If the standards are sufficiently stretching and the expectations of competence high, I believe that a course should naturally extend over at least 12 months. That will be the expectation first for 16 to 18-year-old apprentices from August 2012, as new contracts to training providers are issued. I have asked the National Apprenticeship Service to assess the implications of extending that to apprentices of all ages, taking account of the fact that older apprentices typically have greater prior attainment, as has been said. That will also allow time for our raised expectations on English and maths standards to be achieved. I am mindful of the comments of my hon. Friend the Member for Burton (Andrew Griffiths) in that regard.

Alongside that, I have asked the National Apprenticeship Service to work with the Alliance of Sector Skills Councils to tighten guidance for those who are developing apprenticeship frameworks to ensure that expectations on national standards and rigour are met, and to take action where frameworks are insufficiently stretching. In the current economic times, we must be more vigilant than ever to ensure that funding delivers value and is properly spent. I am mindful of the remarks of the Chairman of the Business, Innovation and Skills Committee. We must crack down when there is evidence that public money is not being spent properly. Action is in hand to review cases where there is concern. Our resolve is to ensure that every penny of public money delivers high-quality apprenticeships and to continue to weed out failure and weakness wherever they are found. I know that the Select Committee is about to launch an inquiry into apprenticeships. I will make the evidence available in my submissions to that inquiry, giving a clear timetable of action and details of the steps we intend to take to root out poor provision.

The Skills Funding Agency will tighten the contracts with colleges and other training providers to allow the immediate withdrawal of funding from provision where quality standards are not met. I am mindful of the comments of the former Chairman of the Children, Schools and Families Committee, the hon. Member for Huddersfield.

Members are aware of the scale of the crisis in public spending that this Government inherited and of the sometimes painful measures that we have had to take to deal with that. The fact that even in these circumstances we have increased spending on apprenticeships is a clear demonstration of our belief in the economic and social value of this form of training, and in the talent and potential of our young people. On 17 November, we set out a clear commitment to focus growth where the returns are greatest, both in terms of age groups and sectors. For example, there is evidence that younger apprentices see the greatest benefits. We will expect the National Apprenticeship Service, employers and providers to focus their efforts on those groups. Accordingly, I am asking the National Apprenticeship Service to target more actively, through marketing and other operational levers, the learner groups, qualifications and sectors where apprenticeships deliver the greatest benefits.

In addition, to widen the effort to create more and better apprenticeship opportunities and to grow the programme among SMEs, from April 2012 we will offer up to 40,000 incentive payments of £1,500 for small employers who take on their first young apprentice. Sufficient funding was already available for next year to support at least 20,000 incentive payments in respect of apprenticeships for young people. An additional fund will be made available to support a further 20,000, meaning that in total there will be 40,000 incentive payments. The payments will be targeted to provide additional apprenticeship opportunities for young people who are ready for employment with small employers that have not been engaged with the programme previously.

I said at the beginning of my remarks that what distinguishes this Government from the previous one is that apprenticeships are at the heart—at the very core—of our approach to skills. We want to build a ladder of opportunity that stretches from re-engagement to the highest skilled levels, with apprenticeships filling a bigger space. We will redefine what we mean by higher learning. In future, our vision of higher learning will extend out from the university classroom or laboratory into the workplace. Because I want a vocational pathway as rigorous, accessible and progressive as the academic route, on 1 December we announced that £18.7 million from the higher apprenticeship fund will support the development of 19,000 new higher apprenticeships in key growth sectors, including construction, renewable energy, advanced engineering, insurance and financial services.

[Sajid Javid (Bromsgrove) (Con)]

I am glad that my hon. Friend is setting out plans to increase higher apprenticeships, because for many young people that is a better route to successful employment than a university degree. For the benefit of the House, will he outline how many higher apprenticeships were created by the previous Government?

[Mr Hayes]

I do not want to be excessively critical of the previous Government. I made that clear at the outset. I said that I would not be more partisan than was necessary to illustrate the extent of our achievement.

In answer to my hon. Friend, let me point out that in 2008-09 there were fewer than 200 higher apprenticeships. With the announcements that have already been made and the relaunch of the higher apprenticeship fund in January for its next phase, I estimate that in this Parliament we will create 25,000 higher apprenticeship places. From 200 places to 25,000 is an extraordinary and remarkable achievement, for which the Prime Minister, the Chancellor, employers, learners and providers can take an immense amount of credit, and for which I can take just a little credit too.

[Toby Perkins (Chesterfield) (Lab)]

I am very keen that the hon. Gentleman should get all the credit that he can. On that note, will he tell the House how many more young people between the ages of 16 and 24 are unemployed after the 18 months in which he has been in his role?

[Mr Hayes]

I wondered whether the hon. Gentleman might ask that question because I know of his genuine and deep-seated concern about these matters, so I had a look at the figures on NEETs over the period from 2000 to date. He will know that from 2004 the number of disengaged young people grew steadily, and that in the third quarter of 2009 it reached 925,000. He will understand that that is a structural problem that requires structural solutions, and that part of the solution is to recast how we train and educate young people and how we create opportunities of the type that I have described, so that we can not only re-engage them but allow them to progress.

The difference between our approach and that of the Labour Government—and, to be fair, previous Governments—is that for a time, apprenticeships may have been seen as a cul-de-sac rather than a highway. By creating the number of higher apprenticeships that I described, I am ensuring that there is a vocational pathway, so that far from being a cul-de-sac, apprenticeships are a route to higher learning that enables people to fulfil their potential. I am confident that our structural changes will help us to deal with a structural problem in a way that the last Government failed to do. I do not say that in an unnecessarily partisan way, but it is pretty surprising that even at a time when the economy was very strong, the number of young people not in education, employment or training remained persistently high and continued to grow.

[Steve Rotheram (Liverpool, Walton) (Lab)]

Perhaps I can help by saying that in 1995-96, the number of young people starting an apprenticeship under the Conservative Government was a little over 20,000. The Tory Government did pump that up in their last few months and reached the amazing number of 65,000, but after 12 or 13 years of the last Labour Government, that number had increased to 280,000. I say that to be helpful to the hon. Member for Bromsgrove (Sajid Javid).

[Mr Hayes]

The hon. Gentleman is a former apprentice and is passionate about the subject, and on that basis I defer to his expertise and personal understanding of the subject. He will be as pleased as I am that apprenticeship numbers in his constituency have grown by 65%. I acknowledged at the outset that apprenticeship numbers grew under the last Government. Indeed, the former Prime Minister declared to the House in 2010 that there were 250,000 apprenticeships. Now there are nearly 440,000. That is the difference between Labour’s record and ours. I know that in the spirit of generosity that typifies all the hon. Gentleman does here, he will want to acknowledge that success when he speaks later.

The development of our new higher apprenticeships in key growth sectors, including construction, renewable energy, advanced engineering, insurance and financial services will allow about 250 employers, including Leyland Trucks, Unilever, TNT, Burberry and so on, to benefit from nationally accredited technical training delivered in the workplace. Higher apprenticeships have the potential to deliver higher-level skills tailored specifically to individual business requirements, and I am encouraged by the research produced at Greenwich university earlier this year showing that about 13% of apprentices progress into higher learning within four years of completing their apprenticeship. As I said a moment ago, we will deliver more than 25,000 higher apprenticeships in this Parliament.

There is much more that I could add to that catalogue of good news. I could wax even more lyrical about the scope and scale of our achievements, but I know that many Members want to speak and I am anxious not to impinge too much on their time. I know that when they speak, like those who have already intervened, they will want to reflect on how much has been achieved over recent months, not just in expanding the apprenticeship programme but in making it more responsive to the needs of employers and the aspirations of learners. Hon. Members will also be aware of how much remains to be done to ensure that we build on excellence, focus on quality, direct funding, link apprenticeships to growth and ensure that not only the macro-economic ambitions that I have set out but our social ambitions are achieved. That is the scale of what we want to achieve. We will be ever vigilant in raising standards and quality, cutting bureaucracy and prioritising areas in which returns and impact are greatest.

At a recent Business, Innovation and Skills questions, I asked all hon. Members who had not done so already to set an example by taking on an apprentice. Today, I ask for their engagement during national apprenticeship week, which starts on 7 February 2012.

To change our national prospects, we must change our view of what matters to each of us and all of us. Apprenticeships are an economic imperative, a social mission, a cultural crusade—such is the scope and scale of our ambitions. We want to reinvigorate practical, technical and vocational skills by reigniting the fire of learning. We want lives lit up by achievement, with a new generation of craftsmen shaping a bigger Britain and building a better future.

[Several hon. Members]

rose—

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[Mr Gordon Marsden (Blackpool South) (Lab)]

I know that in certain quarters—some of the more world-weary denizens of the 21st century—the Minister, for whom I have much respect and affection, is the subject of mild amusement because of how he manages to cover all times, all places and all poetry, and in particular because of how he invokes mediaeval guilds. I think that is extremely unfair, and I have a confession to make tonight: I, too, am a mediaevalist. In fact, a significant chunk of my education at Stockport grammar school was down to an apprentice made good, Sir Edmund Shaa, who was apprenticed as a goldsmith in 1450 and subsequently founded the school in 1487. His Latin motto was “Vincit qui patitur”, which very loosely translates as “You’ll get there if you stick at it”. Of course, that was what happened in that period for people such as Dick Whittington, who was of course apprenticed as a mercer. This is the time of year for pantomime, Madam Deputy Speaker, so I trust that you will forgive me for mentioning him. It also happened for Scrooge, who was not represented in Dickens’s novel as the Chancellor of the Exchequer but was an apprentice to Fezziwig, who was also a great model.

Apprenticeships were renewed by the trade union movement in this country in the 19th and 20th centuries. It was the skilled working class who took them up. My own father, who was apprenticed just before the second world war to Crossley Brothers, one of the best engineering companies in the north-west, was told by my grandfather that he had a job for life. However, as we well know, we have seen the decline of traditional industries over a long period. In the spirit of Christmas and non-partisanship, which the Minister mentioned, I will not ascribe that to any one particular Government, although Thatcherism comes to mind. We saw the meretricious pursuit of funny money and fluffy activity under the Thatcher Government—not that I would accuse the Minister of being either fluffy or funny. [Hon. Members: “Ooh!”] Funny peculiar, not funny ha-ha.

By the 1990s, as my hon. Friend the Member for Liverpool, Walton (Steve Rotheram) said, apprenticeships were on their knees, and it was the Labour Government who renewed them, as the Minister was gracious enough to acknowledge. Incidentally, that renewal did not come out of a focus group, and sadly it was not detailed on the great pledge card. It certainly did not come via Twitter, because we did not have the technology in those days. It came from a deep belief and a response to what we were being told in our heartlands about industrial decline, the failings and horrors of the youth training schemes and the low-skill, low-quality training that had taken place under the Conservatives before 1997.

We said that there must be a better way. That was why we revived manufacturing and gave it a sense of structure as we approached the millennium, and why we set up the national apprenticeship scheme and introduced national apprenticeships week. At the end of the day, it was also why it was the Labour Government who supported our successful bid to stage WorldSkills this October in London—I also pay tribute to the Minister and Members from across the House—and what a wonderful showcase for vocational activities in this country that was.

I do not need to remind the House—because the Minister has already generously done it for me—that we commissioned the Leitch report, that seminal report on our skills needs which has informed policy in all parts of the House. What it says about the direction of travel remains just as relevant, even though the economic situation has changed utterly from the period in which it was produced. Leitch ascribed to apprenticeships an important role to play in improving adult skill levels, as the Minister rightly said. That will only become more important as our demographic profile changes. However, we have to resist the temptation to label all in-work training as apprenticeships, thereby stretching the brand to breaking point. We also have to judge training schemes critically in their own right, and in preparation for this situation.

However, at a time of huge rises in youth unemployment and the number of NEETs, it is clear that the immediate challenge is to grasp the nettle and boost the number of apprenticeships available to those aged 16 to 24. The Government’s own head of the apprenticeship service warned only this summer about the chronic lack of places for interested school and college leavers. It is therefore not just a question of supply, or even money—although the Minister has been somewhat over-familiar with the figures, and I intend to return to where some of the money has come from. It is also about demand—demand in the workplace and demand from employers—and, crucially, confidence. Without confidence, the Government can produce as many schemes as they like, but they will face an uphill battle in successfully attracting the numbers. It is this Government’s failure to produce economic arguments or an economic strategy that will generate confidence that has contributed to many of the problems with which the hon. Gentleman has had to grapple.

However, I would like, if I may, to pose a further question for the House—one that goes to the heart of the future for apprenticeships. What are apprenticeships for? Do we see them as a means to expand someone’s existing skills competences, providing a traditional role, or as a means to give rigour to new and developing types of employment, such as in green and low-carbon areas? If so, we need to highlight the importance of adopting a collaborative approach in those areas between employers and training providers in designing frameworks that best fit those new competences. I know from talking to a successful construction business in my area—a company called Amion, which has a good track record in supporting employees from Blackpool to gain higher and further education qualifications as apprentices, both part time and full time—that expansive frameworks might not always be the answer for young people taking an apprenticeship or skills route to qualifications while working in a company. As for older workers, especially in construction or electrical activities, it might make more sense to have shorter, one or two-day bolt-ons to existing qualifications, which again highlights the need for frameworks to be flexible and adapt rapidly to new developments. In a labour market where the average person will be expected to change jobs a number of times in their lives, can a portfolio of skills be offered that will allow the budding apprentice the ability to cope with this new-found flexibility, as he or she progresses?

There is a lively and ongoing debate about the nature of apprenticeships—an issue to which the Government have rapidly been forced to turn because of some of the disquiet in recent months. That was apparent from a meeting in this House organised recently by FE Week, when more than 80 apprenticeship providers came to the Commons to voice their views and concerns about quality and overstretch in apprenticeships, which is something that we have also articulated via our parliamentary questions. As Peter Cobrin, the national education director of the website notgoingtouni.co.uk, argued:

“Is 12 weeks working in a catering establishment and coming up with a certificate—is that an apprenticeship? Or three years working in a engineering company—is that an apprenticeship? We haven’t got a handle around what it is.”

Alastair Thomson from the National Institute of Adult Continuing Education talked about people who are already working for the employer and then being put on the programme. He said, “Sometimes that’s not a bad thing, but if the person who goes through an apprenticeship stays on the same job or does not get any pay rise—is that really a good use of public money? I’d suggest not.”

Those are issues that have been raised strongly, along with others, in connection with Elmfield Training, which made significant profits in delivering the apprenticeships framework. I have also written to David Way of the National Apprenticeship Service to voice my concern about those issues. I therefore welcome the Minister’s announcement today about curtailing apprenticeships that are shorter than a year. I also welcome all the other things he has said in that respect, but this House needs to remember that this comes on the back of a process of concerted pressure, 18 months into this Government’s period of office. I would say gently to the Minister that the devil is in the detail. I appreciate that he wanted to present a lot of the detail today, but when he was going through it so rapidly, talking about the sunny uplift, I was reminded of the old saying: “The faster they counted their honour, the faster we counted the spoons.” We will certainly be counting the spoons and holding the Government to account on these issues.

The Minister’s announcement will do nothing immediately to address the concerns about the quality and progression of apprenticeships for those in the crucial age range between 19 and 24, although the Minister said that he would look at that. After all, their futures are just as important to the economy and jobs as those in the younger range. We will therefore be pressing Ministers to ensure that apprenticeship standards and quality are maintained for all ages.

[Mr Hayes]

I do not want to intervene too frequently on the hon. Gentleman, because a lot of colleagues want to contribute, but he will know that the growth in apprenticeships for 19 to 24-year-olds over these two years—the first year of which his Government might take some credit for, because of the time lag in publishing the figures—has been around 60%. There has been considerable growth in apprenticeships for 19 to 24-year-olds. As for quality, he will also know that it was this Government who introduced both minimum contract values, to take out some of the smaller and less reliable providers, and apprenticeship standards, and that was in the beginning, not in response to any pressure from the Opposition.

[Mr Marsden]

Well, I—

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[Stephen McPartland (Stevenage) (Con)]

It is a pleasure to follow the Minister and the shadow Minister, and I am grateful to you, Madam Deputy Speaker, for calling me so early in the debate.

It is great news that the number of apprentices in Stevenage has risen by 73% over the last year, from 380 to 650. Those numbers are important, because they relate not just to training schemes but to apprenticeships that will lead to real jobs. I know that the Minister, like me, attended the WorldSkills event, in which 13 of our young people won medals. That showed that they were hungry for learning and achievement. We need to reduce the gap between skills and education to make it easier for employers to take on such young people. I supported the clause in the Bill that became the Education Act 2011 that increased the requirement to level 2—the equivalent of a GCSE A to C grade in maths and English—because it enables our young people to acquire the numeracy and literacy that will help them to gain real jobs at the end of their apprenticeships.

There has been some discussion about the quality of apprenticeships. My constituency contains a couple of manufacturing firms: MBDA, which builds complex weapons systems, and Astrium, which builds 25% of the world’s telecommunications satellites. Their boards are run by people who were apprentices 20 or 25 years ago, and they offer massive apprenticeship opportunities. MBDA recently won an award for being one of the best apprenticeship organisations in the country. The companies take on students aged 16 or 18, give them real jobs, and support their development and acquisition of skills. They even pay for their degrees so that they can make progress. I wonder whether the Minister would be prepared to meet representatives of one of those companies to discuss level 5 apprenticeships.

[Mr Hayes]

I should be delighted to do so.

[Stephen McPartland]

I thank the Minister.

My constituency also contains a couple of accountancy firms that are taking on 18-year-olds and training them to become accountants. They are not providing old-fashioned apprenticeships—jobs to keep young people going for six to 12 months—but are investing in their careers. Stevenage is in Hertfordshire, and is close to London. It takes 25 minutes to travel to King’s Cross on a fast train in the mornings, although it takes much longer in the evenings. The companies want young people because they become committed to them and stay for 20 or 25 years. They become partners in the accountancy firms, and become board members of the large multinational companies.

The Minister came to Stevenage and kindly opened the first welding skills college. It is the result of a fusion between North Hertfordshire college and Weldability Sif, whose inspirational founder is Adrian Hawkins. We are trying to develop a network of such colleges throughout the United Kingdom, which is short of 30,000 welders. The average age of a welder is over 55, and welders in the midlands are now being paid more than £100,000 a year. Welding gives people fantastic career opportunities. [Interruption.] Some of my hon. Friends are suggesting, from sedentary positions, that many of us should have gone into welding when we were younger.

--- Later in debate ---

[Mr Bailey]

I am glad the hon. Gentleman made that intervention, because it allows me to point out that under the previous Labour Government there was a huge increase in the number of people going to university, including a fourfold increase in the number going from my constituency, and there was also a fourfold increase in the number taking apprenticeships. By and large, we find that those apprenticeships were far superior to the those being classified as “apprenticeships” under this Government. As has been said on a number of occasions, the huge number of apprenticeships for over-24s is just a rebranding of the Train to Gain programme. They would not have been included in the previous Government’s statistics on apprenticeships, so to compare one with the other is not to compare like with like. I believe that in the retail sector more than 70% of those who get an apprenticeship level 2 qualification are in existing employment, so does that really meet the test of improved professional qualifications and employability? I doubt it.

[Mr Hayes]

The hon. Gentleman is the Chairman of the Select Committee and I know that he would not want to present a parody of what is happening. We are determined to deliver quality, but I cannot imagine that he is saying that apprenticeships should not be a vehicle for retraining and upskilling and improving the prospects for existing workers. If he was saying that, it would be an extraordinary claim.

[Mr Bailey]

I was not going to make that claim. In fact, the Minister raises an important point. I would not in any way decry the upskilling of existing workers, and Train to Gain was very successful in doing that, but whether we want to call it “apprenticeships” is debateable. Perhaps we do, perhaps we do not, but statistics cannot be traded with the previous Government’s apprenticeship statistics when such people were not included in them. That is my essential point. I am not decrying in any way the benefits of in-work training, but there is a genuine issue with measuring the enhanced employability of people who have undergone that training and the amount of money invested in it.

Let me consider the Government’s approach to the education maintenance allowance. One reason for scrapping it was the alleged deadweight cost of the fact that many young people would have taken courses irrespective of whether that allowance had been paid. The same sort of detailed scrutiny must take place of some of the post-24 training to ensure that we are not spending a vast sum of money—there is a lot of money involved—on providing people with training that they would have had anyway. A secondary issue is the fact that if we can retain the level of skills enhancement we have already and refocus some of the money that would be spent on it on other areas, we might well be able to enhance other apprenticeship provision in other areas, which is equally important.

I could go on for a very long time about this—[Interruption.] But not today. My Committee will carry out a detailed inquiry, but I conclude by saying that we should get away from the rhetoric of apprenticeships and talk about general skills. There are a range of skill packages for different groups of different ages and different skill levels and we must ensure that they are supported rather than talk all the time about apprenticeships—

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[Nic Dakin (Scunthorpe) (Lab)]

As we have heard, there is substantial consensus across the House that apprenticeships are a good thing. Both the previous Government and the present Government have supported and invested in the growth in apprenticeship numbers. Both the current Skills Minister and the shadow Skills Minister have excellent track records championing apprenticeships inside and outside Government. Many MPs are, like myself, employing apprentices, a practical, positive way of showing commitment to the apprenticeship route into employment.

Across the country there are excellent examples of first-class delivery of apprenticeship programmes. Two examples from my own constituency demonstrate how flexible the apprenticeship model is for apprentices and for businesses. North Lindsey college provides a wide range of excellent apprenticeship opportunities in partnership with a range of local companies. Humberside Engineering Training Association—HETA—whose general manager, Eric Collis, gave compelling evidence to the Education Committee, provides a range of high-quality apprenticeships in partnership with companies such as Tata Steel. It is a tribute to the quality of Tata Steel apprenticeships that they are heavily oversubscribed year on year. It is a tribute to Tata’s commitment to the development of its future work force that it is committed to maintaining its apprenticeship numbers even while it navigates the choppy waters that the steel industry currently faces worldwide.

So the apprenticeship brand is a strong one. Labour breathed fresh life into apprenticeships after they had been somewhat neglected. The number of apprenticeships rose from 65,000 in 1996-97 to 279,000 in 2009-10. The dedicated National Apprenticeship Service was set up to promote and expand apprenticeships. To their credit, the Government have built on this. However, most people think of apprenticeships as long courses focused on practical skills for young people.

Apprenticeships are now being supplied for a much wider range of skills and ages than previously, and vary in length. This is not necessarily a bad thing, but care needs to be taken with the branding, and vigilance should be maintained to ensure that apprenticeships are always used appropriately. We have heard some exchanges about that in the debate today. Vigilance needs to be maintained so that apprenticeships remain rigorous and of quality.

Most of the growth in apprenticeship numbers since the election has been in the 25-plus age group, and much of this has been achieved by the re-badging of Train to Gain numbers, so we need to be careful. With the rise in youth unemployment to record levels, it is important that renewed effort is put into building the number of apprenticeships for those under 25.

[Mr Hayes]

The hon. Gentleman is right to say that most of the growth has been in that area and he is right to attribute that to the changing shape of apprenticeships. We are using them as the principal vehicle to upskill and reskill the existing work force, as well as the traditional route into employment through the acquisition of practical competences, but I know that he will want to acknowledge that the two-year change in young apprenticeships for people aged under 19 is around 28% or 29%, and that the biggest proportionate growth is at level 3, rather belying the argument that this is all about low level skills for older people.

[Nic Dakin]

I thank the Minister for his intervention. He is right to say that where there is success it needs to be celebrated. That must be built on. He is also right to recognise the diversity of the apprenticeship model, but everybody in the House is right to emphasise the importance of rigour and quality as we move forward. There is agreement across the House on these issues, but when qualifications change, it is a tricky time and must be managed carefully. I am sure that with his track record, the Minister will be doing his level best to ensure that that is the case.

We do not wish to see another lost generation. That is the risk because of the economic challenges that the country faces. One way of addressing the issue would be to boost under-25 apprenticeships by smart public procurement. We have heard that discussed this afternoon. But there are other ways of addressing the challenge. In his opening speech the Minister drew attention to certain barriers to the supply of apprenticeships, which he hopes to release to allow a greater supply.

The Federation of Master Builders notes that there has been a sharp decline in construction apprenticeships as a result of the economic challenges confronting the construction industry. It states in its report:

“Apprenticeships are so successful because they are employer led and the qualifications on offer are designed to equip the learner with the skills required by the industry. Employers are at the very heart of apprenticeships and so, in order to really make a difference, politicians must continue to make the businesses’ case for hiring an apprentice. This includes the continuation, or even expansion, of the apprenticeship incentive payment.”

As the shadow Minister, my hon. Friend the Member for Blackpool South (Mr Marsden), said, a discussion is needed about how to balance the costs and the incentives between the student, the employer and the state as we move forward.

Finally, I shall touch on information, advice and guidance, which is tricky at present. I know the Minister is concerned about that. Research by the Edge Foundation showed that most people know a lot more about academic qualifications than they do about apprenticeships. The emphasis in the school curriculum on the English baccalaureate risks distorting choices and aspirations. Young people must be given better information about apprenticeships in order to make informed decisions. This should include opportunities to meet current apprentices and visit colleges, training providers and employers, starting before they make subject choices at 14.

Better information is needed about the paths that apprentices can take once they have finished their apprenticeships. It is not well known that apprentices can progress to higher education, or that many are promoted to supervisory and management positions soon after completing their training. Edge’s 2009 survey of teachers revealed that more than half—56%—of the secondary school teachers surveyed rated their knowledge of apprenticeships as poor. We need to take action on information, advice and guidance. We need to be rigorous about quality as we move forward, and we need to look at the package of incentives available to stimulate the further progression of apprenticeships.

Farepak

John Hayes Excerpts

Wednesday 14th December 2011 Westminster Hall

[The Minister for Further Education, Skills and Lifelong Learning (Mr John Hayes)]

It is a great pleasure to be able to respond to this debate, Mr Weir, and I am grateful to the hon. Member for Newport East (Jessica Morden) for bringing the matter to our attention. It is a matter of profound concern to the people involved. I think I reflect the Government’s perspective in adding my view that this was completely unacceptable. Many vulnerable people were associated with it and it has taken far too long to sort out. The steps taken to try to resolve it were far slower than both the people detrimentally affected and any reasonable observer might have anticipated, so I am extremely sympathetic to the case that the hon. Lady has made and to the circumstances of the people who were so badly affected. It is understandable that questions of the kind that she has posed are raised when so many people are affected. The insolvency is particularly sad, coming around a savings scheme—a club, if you like—that was tied to Christmas, as we now approach Christmas some years later. This is a poignant subject, and the emotions evident in the contributions made so far reflect the character of the matter with which we are dealing.

[Tony Cunningham]

Does the Minister accept that what makes the situation even worse—it is bad enough that it is Christmas and so on—is that the agents who were taking the money week after week were taking it from friends? The responsibility and the guilt that they feel, because they have let down their friends, are enormous.

[Mr Hayes]

Yes, that is true. It is a good point. The hon. Gentleman made that point in an earlier intervention in a different form, and he is right. We think of the victims as the people whose money was contributed and lost, but the wider effect of the kind he described is also very sad, because people were acting in good faith, unaware of the likely consequences of the role that they played until it was too late to do anything about it. The hon. Gentleman is right to identify the communal effect that it had on communities that are often tight-knit and where trust matters. This is a poignant matter that understandably stimulates heartfelt sentiments. I will try to deal factually with the circumstances, but it is hard to do that in the context, about which we feel deeply.

The matter started before we came to office, but it is not a partisan matter. Governments need to express a view and take appropriate action. The case began under the previous Government and, of course, because it has not yet been satisfactorily drawn to a conclusion in terms of the money received by the people concerned, it continues under this Government. However, neither Government could have intervened in the conduct of a particular insolvency, as that remains subject, as hon. Members will know, to the overall supervision of the court. Nevertheless, I can give some background as to where the Government stand at the moment.

On the issue that was raised about the directors, concern was rightly expressed about their position and their living up to their responsibilities. They are the people who controlled the company. The investigation that took place was complex. As the hon. Member for Newport East mentioned, it resulted in an application by the Business Secretary, in the High Court of Justice on 26 January this year, for disqualification orders to be made against the directors. It was made in the public interest on the ground that the conduct of each director makes him or her unfit to be concerned in the management of a company. It is, of course, a legal application. None the less, the fact that we made it reflects the Government’s view that this is a matter of profound concern. The individuals must be held responsible. As a result, opportunities to serve in a similar or indeed any business capacity should be limited. To say more about that at this stage would probably be improper, but the message that I have broadcast makes clear my views and those of the Government.

[Jessica Morden]

Does the Minister have any idea how long the process will take, and will he address the issue of the knighthood if the person in question is found guilty?

[Mr Hayes]

That is a fair question, but since the matter is now part of a legal process it is difficult for me to give a definitive answer. It would not, however, be unreasonable for my hon. Friend the Member for Kingston and Surbiton (Mr Davey), who is the Minister responsible for such matters, to respond directly to the hon. Lady, and I will ask him to do just that. I am not the Minister responsible for this particular matter, although I am happy to act as a conduit to the person who is. On such occasions when I am standing in for a Minister, it is my habit to make it clear to them that they have a responsibility to hon. Members and to the Chamber. I am more than happy to pass on the fact that I would like my hon. Friend the Member for Kingston and Surbiton, in so far as he can, to answer that question.

[Mr Buckland]

In the spirit of that constructive approach, may I ask the Minister the question posited by the hon. Member for Workington (Tony Cunningham) about the criminal aspect of this case? Was a proper investigation ever carried out by the Serious Fraud Office or the Crown Prosecution Service into allegations of fraudulent trading? It certainly seems to me, and to many others, that that should have been looked into at the time. If it was not looked into, why was that?

[Mr Hayes]

I will try to deal in my remarks with some of the actions that were taken, and if I do not cover that point I will come back to my hon. Friend on the matter. I would like to make some progress to describe what actions have been taken, although I am mindful of that intervention and do not seek to avoid it. I will try to deal with it during my remarks, but if I cannot, I will subsequently reply to my hon. Friend directly.

[Nick Smith (Blaenau Gwent) (Lab)]

Will the Minister give way?

[Mr Hayes]

I will give way briefly, but I want to make some progress because I am short on time.

[Nick Smith]

It is great that the Minister has shown such sympathy for the victims of this injustice. Such schemes take place up and down the valleys in south Wales, and many members of my family have participated in them in the past. I would like to press the Minister on the matter of alleged fraud. Will he let us know what he is going to say on the matter sooner rather than later, so that we can quiz him further? People are very angry.

[Mr Hayes]

When I have made some progress, if I have not satisfactorily covered that matter I give a commitment that either I or the Minister responsible will respond properly and as far as we can within the legal constraints that I have set out. I am aware of the hon. Members who have participated in this debate, and of those who have a particular interest in the area. I am not avoiding the issue; it is a fair question and I will ensure that it gets a fair answer from the Government. I am not in the business of avoiding difficult subjects, particularly ones such as this that unite the whole House in its view of what is and is not appropriate.

In the short time that we have available for this important debate, let me make some progress so that I can deal with some of the points raised. I want to set out the steps that we have taken to avoid such things happening in the future. As the hon. Member for Newport East said, the main companies in the hamper industry, through the Christmas Prepayment Association, introduced new safeguards for consumers’ money in the form of independently controlled, ring-fenced trust accounts. I know that the hon. Lady is doubtful about the self-regulation of the industry, but however imperfect, those safeguards represent significant progress for an industry that has, quite frankly, faced something of a shake-out following the Farepak affair. Relatively few businesses are now involved in that industry, and their coming together in the way that I have described represents significant progress.

There are various other Christmas saving accounts, such as clubs run by supermarkets, large retailers, local shops, social clubs, pubs and workplaces, and risks are always associated with any business of that kind. They are bigger and certainly more widespread than the principal companies that most of us know about. Local schemes exist throughout the country, and have done so throughout my lifetime if not considerably before. I remember my mother being part of a small, local Christmas saving club when I was a child, and it is hard to regulate every such arrangement. None the less, the Office of Fair Trading has produced a leaflet entitled “Save Xmas”—I am sorry it is not “Save Christmas”—which is a quick guide to paying for Christmas. The leaflet lists various schemes and indicates whether there is any protection should they go bust. It is important that people who put their money into such schemes know where they stand at the outset, because that has not always been the case in the past.

The Money Advice Service provides advice on its website about what protection is offered for various ways of saving money, and in addition, the Office of Fair Trading’s consumer codes approval scheme, which aims to safeguard consumer interests and raise standards in markets, lists the protection of prepayments as one of its criteria. The OFT has approved 10 codes so far, and we are currently consulting on how consumer codes will operate in future, in light of proposals for institutional reform for those bodies that are currently responsible for consumer and competition policy. Those measures should help savers to avoid losing prepaid moneys in future.

On the issue of insolvency, it is clearly a matter of regret that more money is not available for distribution, and I understand the concerns mentioned by the hon. Member for Newport East, and others, about the expenses incurred in dealing with liquidation—I think she described the figure as “eye watering,” and I do not disagree. Farepak is clearly no ordinary insolvency because it is so complex. It was complex from the start and involved an exceptionally large number of customers and agents—more than 116,000—and the identities of many of those were initially unknown. Considerable work was therefore involved in identifying creditors and substantiating their claims.

The creditors’ committee, which represents those who have lost money, has received regular detailed reports on the progress of the liquidation and approved the actions of the liquidators. I understand that the liquidators have undertaken various investigations in order to increase asset realisations, including action that resulted in £4 million being recovered from the directors of the company. I also understand that the liquidators are currently working to bring proceedings against third parties, with the intention of increasing the pot of money available to creditors. Given the nature of such an action, the liquidators say that it is not possible to determine when moneys will be paid to creditors. As a result of this debate, however, I will make further inquiries, and ask the Minister responsible to report back to hon. Members about the anticipated time scale, in so far as he reasonably can.

The liquidators point out that the work they have undertaken over the years has resulted in the possible amount payable to creditors increasing from 5p to 15p in the pound. I accept that 15p may not be perceived as sufficient, but as the hon. Lady knows, it has substantially increased from the original estimate. The liquidators have also stressed that the creditors’ committee can, at any time, instruct them to stop their activities and pay creditors from the funds already secured. They have also indicated that due to the sheer number of creditors, the process of paying a dividend will be very expensive. They therefore want to ensure that as far as possible, all money that can be recovered is received before a payment to creditors is made. The aim is to get the amount returned per pound to the highest possible level before we start the process of paying the creditors. Otherwise, we will add to the administrative costs associated with the process, and the balance between what that costs and the benefit people receive will be even further out of kilter.

I do, however, believe that the figure of £8.2 million, in contrast with the current dividend prospect of £5.5 million, causes considerable concern. I know that the hon. Lady shares my concern about the level of fees, and she will know that the Government have considered the issue and what should be done in the future. I hope that what I have said today will provide some assurance that I, and other Ministers, believe that we cannot leave the situation as it is in terms of how such matters are handled.

In April 2010 new provisions came into force for insolvencies commencing after that date, giving creditors additional powers to obtain information about the fees and expenses charged by insolvency practitioners. The percentage of creditors required to bring a challenge in court was reduced from 25% to 10%, and the issue of fees charged by insolvency practitioners was considered by the OFT in a report published in June 2010.

Earlier this year, my hon. Friend the Member for Kingston and Surbiton, the Minister with responsibility for issues of insolvency, issued a consultation on a set of proposed reforms to the regulation of insolvency practitioners, including how practitioners deal with complaints. Our aim is to ensure transparency and accountability and to improve confidence in the insolvency process.

This has been a useful discussion on an important subject. I have had little time to sum up the debate, but I take this issue seriously, just as the Government take seriously the whole business of dealing with insolvency. We will take steps to ensure that the process is fair, reasonable and timely, and I will ask my hon. Friend the Member for Kingston and Surbiton to come back to Members on any specific points that I have not had the chance to cover, and make the position clear.

Oral Answers to Questions

John Hayes Excerpts

Thursday 8th December 2011 Commons Chamber

[Sajid Javid (Bromsgrove) (Con)]

11. What steps he is taking to promote adult and community learning.

[The Minister for Further Education, Skills and Lifelong Learning (Mr John Hayes)]

The Government are enthusiastically committed to adult and community learning. That is why we have protected the £210 million a year adult safeguarded budget. On 1 December we announced our intention to devolve its planning and accountability, so that local people are at the heart of deciding the learning offer. We will pilot different community learning trust models in 2012-13.

[Sajid Javid]

The Minister has been an excellent advocate of adult community learning. May I ask him how his pilot on community learning trusts is working at the moment? In particular, how has he engaged local communities to improve adult community learning?

[Mr Hayes]

We know, as W B Yeats knew, that education lights a fire that burns brightly. It certainly burns brightly in the hearts of Ministers. We have much to do in respect of adult community learning, which was derided by the last Government as mainly holiday Spanish. That was how the former Secretary of State described it. We will work with local communities. The first meeting to discuss models and timings will take place one week from today, and we intend to publish a prospectus in spring 2012. We are delivering.

[Kevin Brennan (Cardiff West) (Lab)]

The Minister and I have jousted about Yeats before, and I should tell him that he did not share the Minister’s politics, which might disappoint him. There is a danger of his policy becoming a fig leaf around adult and community learning. Will he undertake to work from the centre with other ministerial colleagues, particularly for older people in care homes because of the incredible impact that adult and community learning can have on health outcomes for those older people?

[Mr Hayes]

One reason why I, along with the Secretary of State, have defended adult and community learning is due to its effect on things such as physical well-being, community health, mental health and so forth. It is certainly true that we will need to take those things into full account in respect of the offer. I give that answer mindful that the hon. Gentleman, who was my predecessor, was himself a champion of adult and community learning.

[Glenda Jackson (Hampstead and Kilburn) (Lab)]

12. What recent progress he has made on the Green investment bank.

--- Later in debate ---

[Robert Halfon (Harlow) (Con)]

15. What steps he is taking to ensure that apprenticeships offer a route to higher-level skills.

[The Minister for Further Education, Skills and Lifelong Learning (Mr John Hayes)]

We are committed to expanding the proportion of apprenticeships that are at advanced and higher levels. Provisional 2010-11 data show that the number of advanced-level apprenticeships has risen by about two thirds. We have allocated some £19 million to support the development of new higher apprenticeships, which will dramatically extend the range of opportunities for apprenticeships up to degree level, and will create at least an additional 19,000 apprenticeships at the higher level.

[Robert Halfon]

Will the Minister support the parliamentary apprentice school which I founded with the charity New Deal of the Mind, and will he consider the similar idea of establishing a Government apprentice school using public contracts? Figures from the House of Commons Library show that if just one apprentice were hired for every £1 million public procurement, 280,000 apprenticeships would be created instantly and youth unemployment would be cut by a quarter.

[Mr Hayes]

I take the view that Government have a role and that procurement has a role as well. For that reason I have established a ministerial champions group for apprenticeships involving 14 Departments, we have explored the development of kitemarking for good employers who use apprenticeships and supply the public sector, and we have provided streamlined informational skills for companies that want to supply Government.

My hon. Friend has been a great champion of apprenticeships, and has even taken on an apprentice himself. Let me again urge all Members to take on their own apprentices.

[Mark Lancaster (Milton Keynes North) (Con)]

16. What plans he has to encourage small and medium-sized businesses to offer apprenticeships.

[The Minister for Further Education, Skills and Lifelong Learning (Mr John Hayes)]

As you can see, Mr Speaker, I am irrepressible.

We have recently announced a new financial incentive of £1,500, which will help up to 40,000 small employers who have not previously engaged in the programme to take on a young apprentice. We are taking radical steps to speed up and simplify the process for employers, and to remove unnecessary paperwork and bureaucracy.

[Mark Lancaster]

While the Minister’s talents are obvious, some of us have hidden talents. I, for instance, am a pyrotechnician, and ran the family firework company for many years. We were always keen to take on apprentices, but it was hard to keep them in a long-term skilled job, and the paperwork involved in taking them on in the first place was very extensive. What can be done to help the situation?

[Mr Hayes]

As my hon. Friend will know, the number of apprenticeships has risen by 70% in his constituency. That does credit to him, and, as I think he will acknowledge, still greater credit to me.

My hon. Friend asked what more we would do. We will strip out all unnecessary health and safety requirements, we will introduce those incentive payments to compensate small businesses, and I am determined to streamline every stage of the process. Tackling youth unemployment is a top priority for the Government: that is why we are focusing the apprenticeship budget on young people, which is where it can make the most difference.

[George Eustice (Camborne and Redruth) (Con)]

18. What progress his Department has made in assessing applications by further education colleges for phase 2 of the enhanced renewal grant.

[The Minister for Further Education, Skills and Lifelong Learning (Mr John Hayes)]

In August, I was delighted to confirm that the Government would make an extra £100 million available for a two-year college capital investment programme. The programme was launched by the Skills Funding Agency in September, applications were invited by November, and the agency is aiming to announce decisions on the enhanced renewal grant before Christmas. Speedy action, Mr Speaker: alacrity, combined with perspicacity.

[George Eustice]

Cornwall college in my constituency has recently used a new technique to refurbish and reclad one of the old buildings on its estate at a fraction of the cost of a rebuild, and would like to repeat the process on some of the rest of its estate. Does the Minister agree that procedures of that kind should be given priority?

[Mr Hayes]

My hon. Friend, who is a great champion of his local college and a great local Member of Parliament, has written to me about that very matter. I have his letter here. I am pleased to say that I have arranged to speak to him on Monday about the details of his question, and I can also tell him that as soon as I became the Minister we announced new capital funding. I do not say this with any joy—I say it more in sorrow and anger—but what a contrast with the last Government, who presided over a capital funding debacle.

[Mr Edward Leigh (Gainsborough) (Con)]

19. What assessment he has made of the effect on the growth of small and medium-sized enterprises of planned reductions in the level of taxation; and if he will make a statement.

--- Later in debate ---

[Sajid Javid]

May I thank the Minister for Further Education, Skills and Lifelong Learning for visiting my constituency of Bromsgrove and opening a £3.5 million extension to North East Worcestershire college? Will he update the House on what other investment plans he has for colleges up and down the country, and how that will promote young people’s life chances?

[The Minister for Further Education, Skills and Lifelong Learning (Mr John Hayes)]

I said a few moments ago that we have made £100 million available. It will be spent quickly, and that will affect colleges across the country. I should like to thank my hon. Friend for being such a generous host when I visited NEW college in his constituency. My hon. Friend the Member for Redditch (Karen Lumley) was in attendance as well, because the college serves both constituencies. On that occasion, I had an opportunity to ride a Harley Davidson motorbike, and like that bike, the career of my hon. Friend the Member for Bromsgrove (Sajid Javid) is powerful, speedy and impressive.

[Mr Speaker]

We are all intrigued by the Minister’s exploits, I am sure.

--- Later in debate ---

[Stephen Phillips (Sleaford and North Hykeham) (Con)]

T6. I am sure that my hon. Friend the Minister for Further Education, Skills and Lifelong Learning will agree with me not only about his own irrepressibility but also about the importance for economic growth of our meeting the training needs of businesses. What measures is he taking to reduce red tape and excessive micro-management in respect of further education colleges —a trend that so characterised the last Government—in order that they can respond to our economic needs?

[Mr Hayes]

The Foster report described the last Government’s policy as a galaxy of bureaucracy, oversight and inspection. By contrast, we are cutting red tape, streamlining funding systems, and giving colleges greater discretion to respond to the demands of employers and the needs of learners. I have recently published a document setting this out in detail. Copies are available in the Library of the House—and signed copies by application.

[Naomi Long (Belfast East) (Alliance)]

T7. Northern Ireland is the only region where employment law is devolved, an anomaly that in the past has led to the Northern Ireland position being largely ignored in the formulation of UK policy both in the transposition of European Union employment directives and in national agreements. Will the Minister assure us that he will work with the Minister for Employment and Learning in Northern Ireland to provide a framework in which Northern Ireland interests can be addressed in any future developments in this area?

--- Later in debate ---

[Jim Shannon (Strangford) (DUP)]

The responsibility to promote adult and community learning in Northern Ireland is a devolved matter. Has the Minister considered linking with Northern Ireland’s Department for Employment and Learning to provide a strategy for the mutual benefit of both the UK mainland and Northern Ireland?

[Mr Hayes]

I do have regular discussions with my counterparts in the devolved Administrations. The point that the hon. Gentleman makes is an excellent one and I shall take action on it following questions today.

Further Education Reforms: Building a World Class System

John Hayes Excerpts

Thursday 1st December 2011 Written Statements

[The Minister for Further Education, Skills and Lifelong Learning (Mr John Hayes)]

The Government are today publishing “New Challenges, New Chances: Further Education and Skills System Reform Plan: Building a World Class Skills System” and the underpinning skills investment statement for 2011-2014, copies of which are being sent to all hon. Members and placed in the Library.

Our vision is for a further education and skills system in England freed as far as possible from central bureaucratic burdens, thus able to respond more effectively to the needs of local learners and employers and so make the maximum possible contribution to renewed growth.

Our plan is based on 10 key policy commitments:

1. We will empower learners—from basic through to higher-level skills—to shape the system through their participation. First-class information will inform their choices, with Government funding focused on supporting students where it can have most impact.

2. We will launch a national careers service in April 2012 to provide information, advice and guidance which both informs and stimulates demand for further education, work-based training and higher education. Lifelong learning accounts will equip learners with the information they need to make the most of their learning opportunities.

3. We will create a vocational pathway as navigable, rigorous and attractive as the academic route, so recalibrating the character of higher learning.

4. We will develop and promote excellent teaching, by establishing an independent commission on adult education and vocational pedagogy to develop a sector-owned strategy and delivery programme. We will also facilitate an independent review of professionalism in the FE and skills work force.

5. We will take further action to ensure that qualifications are of high quality and comprehensible, by improving awareness of the qualifications and credit framework—consulting employers on their engagement in qualification development—and by consulting on the character and function of national occupational standards.

6. We will take action to remove restrictions and controls on college corporations, creating new roles for governors, working closely with other educational providers in post-14 learning, with local stakeholders taking the lead in developing delivery models to meet the needs of their communities.

7. We will continue our programme to free the FE system from central control, building upon the successes already achieved, including further work by the Skills Funding Agency with colleges to remove bureaucratic burdens.

8. We will provide £3.8 billion a year of public funding to the sector and we will create a simple transparent funding system that is both robust in ensuring funding enables high-quality provision that delivers good value for money, and which responds to local needs.

9. We will empower students by providing better access to quality information to make informed choices, determined by a better understanding of opportunities for further learning and employment destinations. Simultaneously, to assure quality, we will take swift action in relation to failing provision, providing intensive support and, if necessary, intervening to ensure that alternative and innovative delivery approaches are secured for the future.

10. We will build on the growing international demand for practical, technical and higher-level vocational skills. Inspired by the legacy of our achievements at WorldSkills 2011, we will stimulate and support the sector to take advantage of opportunities in the global market.

Girls (Educational Development)

John Hayes Excerpts

Tuesday 29th November 2011 Westminster Hall

[The Minister for Further Education, Skills and Lifelong Learning (Mr John Hayes)]

As the shadow Minister, the hon. Member for Cardiff West (Kevin Brennan), has said, this has been an interesting and important debate, and I congratulate my hon. Friend the Member for Wirral West (Esther McVey) on securing it.

I do not have daughters; I have two young sons. However, women have been very important to me throughout my life. My mother was a woman and, curiously, my wife is, too. Therefore, what I learned literally from the cradle is that women—mothers—shape our character and form our ambitions. We gain the confidence that has been described by so many of the speakers in this debate—it was highlighted by my hon. Friends the Members for Hastings and Rye (Amber Rudd), for Chatham and Aylesford (Tracey Crouch), for Gosport (Caroline Dinenage) and, indeed, by the hon. Member for Vale of Clwyd (Chris Ruane)—very early in our lives. Governments, schools and others can do much—I will talk a bit about what we are trying to do—but, in the end, the familiar influences, particularly maternal influences, are critical to subsequent progress.

I learned from my mother and my father, who were both wonderfully archetypically male and female. I think of my mother and I think of her softness and the smell of talcum powder; I think of my father and I think of how bristly he was and how he smelled of tobacco and work. They were certainly both archetypically male and female and were both wonderfully demonstrative and loving. They gave me the feeling that I was the most special little boy in the world—a feeling that has never left me, by the way. I feel that now, at this very moment, so my ambitions were reinforced by not only their direct support but the sentiments that they instilled in me.

I entirely appreciate the points that have been repeatedly made in this debate. As the shadow Minister has said, they have been made on the basis of good information and a shared determination across the Chamber. I entirely recognise that the challenges people face as they turn their own ambitions into reality are affected by many influences. In the short time left, I will try to deal with some of those influences, some of which are benevolent and some of which are malevolent, as the hon. Member for Vale of Clwyd said.

The hon. Gentleman made a wonderful contribution that underpinned the fact that this debate is as much about values and attitudes as it is about education. I reassure the shadow Minister that we understand—at least, I understand—that education is more than utilitarian. It is about values and attitudes, and ethos and sentiments. Although the work done by parents in instilling both ambition and the capacity to realise ambition in children is critical, the work done by our schools matters so much, too. Indeed, it matters more for those children who are not as fortunate as I was in having a stable, loving and supportive family.

In respect of girls and women, we need to go the extra mile. We need to take further steps to ensure that they are able to fulfil their potential. In the brief time available, I will talk about some of the steps that the Government are taking, but before I do so I will just say a word about Plato because I know that hon. Members would be disappointed if I did not. Some 2,500 years ago, Plato said:

“Nothing could be more absurd than the practice that prevails in our country of men and women not following the same pursuits with all their strengths and with one mind, for thus, the state instead of being whole is reduced to half.”

How interesting that the classical world understood what so often in the modern world we forget.

My hon. Friend the Member for Wirral West, who initiated the debate, has not forgotten because she has dedicated a great deal of her considerable skill and energy to the promotion of the interests of young women. I pay tribute to the work she has done. I was pleased to be able to support it in a room close to here, when she was able to launch her magazine, Chloe Can, which is aimed at young women. She was able to articulate some of the points that she has made today at greater length then. The work we do to establish role models in these terms is important, and my hon. Friend is indeed a role model for young women whose interests she has championed with such vehemence and to such effect.

We have learned much—I defer to the two former teachers who have spoken—about what characterises good schools in this respect. Schools with little or no gender gap in achievement tend to be characterised by a positive learning ethos—we have heard about that today, have we not?—high expectations of all pupils, high quality teaching and learning, good management and close tracking of individual pupil’s achievement. Teachers know all their pupils well and plan their resources and teaching accordingly, rather than conforming to preconceived views about what those pupils might achieve, whether that relates to gender or any other particular characteristic.

We can do three things in particular to support teachers in their efforts to fuel social mobility and achievement. The first concerns advice and guidance. It is very important that young people get the right quality advice and guidance. In truth, one of the principal inhibitors to social mobility is this: I suspect that our children will become socially mobile because of us. Our children will benefit from the fact that we, in the Chamber, are reasonably well informed about the opportunities that might exist, be they boys or girls, and will impart an understanding of how to turn those ambitions into opportunity. That is not true for all young people, however. The advice and guidance that we can provide through the new national careers service will, to some extent, ameliorate the disadvantages of many young people who do not have either advice from a family or social networks.

[Kevin Brennan]

Is the Minister concerned, in the light of the debate, that the lack of face-to-face guidance in the careers service will be a hindrance to girls gaining confidence and being able to make the right choices?

[Mr Hayes]

It is important to appreciate the value of face-to-face guidance. The hon. Gentleman will know that the Education Bill establishes the new statutory duty on schools to secure independent, impartial advice and guidance. When it was debated in the House, we agreed, in the statutory guidance accompanying the Bill, to ensure that face-to-face guidance was available in particular to people with the greatest disadvantage, those special needs and learning difficulties. We also said that schools should make the most appropriate provision for their pupils. I emphasise that it is vital that that should include a range of provision, and that that provision should be linked to the quality standards that are being developed by the profession itself.

As well as changing the law, we have worked with the careers profession to establish a new set of qualifications, with appropriate training and accreditation. That means that we will re-professionalise the careers service after the disappointing years—I put that as mildly as I can—of Connexions. We are on the cusp of a new dawn for careers advice and guidance, with a professionalised service, a new set of standards, a new statutory duty and the launch of the national service co-located in Jobcentre Plus, colleges, community organisations, charities and voluntary organisations. I do not say that the task will be straightforward, but it is a worthwhile journey. The destination to which we are heading will be altogether better than the place we have been for the past several years. That advice and guidance will assist young women, in particular, to fulfil their potential in the way I have described and, as a result of this debate, will re-emphasise the significance of opportunities for girls and young women in the establishment of the national careers service this spring.

The second issue I wanted to speak about was apprenticeships. I made a point—the hon. Member for Cardiff West knows this subject well too—when I became the Minister of challenging the National Apprenticeship Service on the under-representation of particular groups. The obvious example in relation to this debate is women in some of what might be called the traditional apprenticeship frameworks: engineering, construction and so on.

[Esther McVey]

I conducted some surveys and analysis on that, which was very interesting. For young girls who took science apprenticeships, it fitted in far better with their family life because they could achieve a job and status far more quickly than the slow process of going through university. It fitted in much better with the cycle of a woman’s life and child-bearing age.

[Mr Hayes]

How interesting. I defer to the greater expertise of my hon. Friend, but what I have done is ask the National Apprenticeship Service to run a series of pilots, building competencies and understanding on how we can make the apprenticeship system more accessible to those who are currently poorly represented. That is not to say that women are poorly represented in apprenticeships per se. More than half of all apprenticeships are taken up by women, but they tend to be in areas such as care and retail. The effect of that, because of the wage rates in those sectors, is to exaggerate the difference in wage-earning potential among successful apprenticeships between men and women. I have asked the NAS to work on a series of pilots. Bradford college is prioritising action to increase female representation in the energy sector. Essex county council is focused on women in engineering and on acting as the prime contractor for a regional provider network. West Notts college, whose representatives I met recently, is also looking at increasing female representation in engineering. There are a number of others, but I want to give the Chamber merely a flavour of what we are trying to do.

The third issue I wanted to speak about is women and science, technology, engineering and maths. Basically, not enough girls study STEM after the age of 16, as has been mentioned a number of times, including by my hon. Friend the Member for Gosport. There are several things that we can do. The Department for Education has worked closely with the Institute of Physics. Its stimulating physics network incorporates many of the recommendations of the Girls into Physics report, which the hon. Lady will know about. The STEM ambassador scheme, co-ordinated by STEMNET, is arranging for working scientists and engineers to visit schools to support teachers, and engage and enthuse pupils to continue studying science. The hon. Lady will know that a large proportion of the STEM ambassadors are women. We want to focus that energy on what we can do to encourage more girls to study STEM subjects. By making different choices early, they cut off some of the routes that might be available to them later. So much of this is about early intervention and changing perceptions about what choices can be taken to facilitate subsequent progress. I will happily give way before I come on to my exciting conclusion.

[Esther McVey]

Will the Minister congratulate the new president of the Royal Society of Chemistry? For the first time in 300 years, it has a female president. In the next year, she will try to increase the number of female teachers becoming ambassadors and the number of girls taking chemistry.

[Mr Hayes]

I not only add my voice to that congratulation, I suggest that we invite her here to a tea party with the hon. Lady and myself, which, needless to say, she will be funding.

This debate has brought to the attention of the House the important subject of opportunities for girls and women. I do not take the orthodox view, by the way, that men and women are more alike than is often supposed. I think that they are rather less alike—my life has taught me that. However, that does not mean that the opportunities available to them should not be just as demanding, just as exciting and just as exhilarating. We should work tirelessly to create those opportunities in the way that my hon. Friend the Member for Wirral West has done for so long, beyond old frontiers to new horizons.

I learned at my mother’s knee first, and I learn from my wife every day, as Yeats said:

“That Solomon grew wise

While talking with his queens”.

In that spirit, I assure the Chamber, and all those who have contributed to this important debate, that the Government will go the further mile that I described at the outset to achieve the ambitions of my hon. Friend, which reflect the ambitions of so many girls and young women.

Economic Growth and Employment

John Hayes Excerpts

Wednesday 23rd November 2011 Commons Chamber

[The Minister for Further Education, Skills and Lifelong Learning (Mr John Hayes)]

First, the previous Government inherited a boom, and then they bequeathed a bust and a massive deficit, so our top priority must be to deal with the consequences of that and keep out of the downward spiral into which countries such as Greece and Italy have fallen.

As my hon. Friends the Members for Bedford (Richard Fuller), for Solihull (Lorely Burt), for South Basildon and East Thurrock (Stephen Metcalfe), and for Aberconwy (Guto Bebb) have argued, more than ever we need a plan to give confidence to markets, businesses and our people. This debate was introduced by the shadow Secretary of State, the hon. Member for Streatham (Mr Umunna). It was his first major outing, and I thought that his speech was fair. It was better on structure than on presentation—but then again, I suppose the 11 advisers write the speeches; they do not deliver them. [Interruption.] No, I am a fan of the hon. Gentleman. It has become orthodox to say that he has been over-promoted, but I think that that is a welcome change from the self-promotion that has characterised his career so far. We can therefore be grateful that he is at the Dispatch Box, as he predicted he would be for so long.

The problem with the hon. Gentleman and other Opposition Members—in fairness, we heard some good speeches from them—is that they still refuse to acknowledge that reducing the deficit is central to any credible plan. We only have to look at the continuing crisis on the continent to see what would happen if we do not do so. To be analytical about it, the hon. Gentleman made a speech about cyclical problems in a structural context. The issues around debt and deficit in this country are structural, and they will not be solved by cyclical solutions.

[Mr Umunna]

The Minister seeks to give me a lecture on reducing the deficit. Can he explain why, as I asked the Secretary of State earlier, in the average of the independent forecasts, his Government are forecast to borrow more in every remaining year of this Parliament than we were under our more responsible deficit reduction strategy?

[Mr Hayes]

That was the ponderous exaltation of a basic economic fact: when tax yields fall because there is less growth than expected, and welfare payments go up, of course that is a result, but it is not a reason not to have a credible fiscal policy. The hon. Gentleman remains in denial, just as the shadow Chancellor remains in denial, but the OECD—

[Mr Bailey]

rose—

[Mr Hayes]

I am sorry, I will not give way. I usually do but I do not have time.

The OECD says that we have a £37 billion structural deficit and that it is the largest in the G7. It is not just about the Government debt. The hon. Member for Streatham must know that if we look at debt as a whole, we have the largest debt as a proportion of GDP in the developed world, with the exception of Japan.

[Gordon Banks]

rose—

--- Later in debate ---

[Mr Hayes]

No, I will not give way again. Time does not allow.

So, the first thing we have to do is deal with the deficit. The second thing, as the Secretary of State said in his penetrating analysis of this weak motion, is to rebalance our economy in favour of making things, selling them and exporting them. That means an investment in human capital as well as in infrastructure. That is why we have put so much emphasis on apprenticeships.

I noticed that, sensibly, neither the proposer of the motion, the hon. Member for Streatham, nor the hon. Member for Blackpool South (Mr Marsden), who summed up and who has rather sensible views about these things for the most part, attacked our apprenticeships policy. They know that we have delivered the biggest growth in apprenticeships in modern history. They know that across regions and across sectors, we have shown growth in apprenticeship numbers. There is a great deal of discussion about this so let us get the facts on the record.

Apprenticeships among 19 to 24-year-olds have grown by 64% in two years, and among 16 to 18-year-olds by 29% in two years. They have grown even more among over-25-year-olds, but the biggest proportion of growth has been at level 3. It has been across sectors and across regions. The biggest regional growth—I say this to the hon. Member for City of Durham (Roberta Blackman-Woods)—has been in the north-east.

The third element of the strategy must be to deal with tax, cut red tape and bureaucracy, and support businesses to create jobs and fuel growth. Much has been said about what the Government have done in that respect. It is true that we have launched the growth and innovation fund, which is supporting life sciences, the creative industries, the hospitality industry and others. It is also true that the regional growth fund is doing that job as well. In the first phase the regional growth fund will support 50 projects and ultimately more than 150 projects. That will leverage more than £8 billion of private sector investment to create or safeguard more than 300,000 jobs. That is the simple fact of the matter.

Labour does not have a credible alternative. The Opposition’s five-point plan is rooted in a denial about deficit which would undermine confidence in business and in the markets, push up interest rates and do lasting damage to Britain. The Labour party inherited a boom. Its legacy was a bust.

The shadow Chancellor is not present, but his fingerprints are on the motion once again. He said recently that he cries at “The Sound of Music” and “Antiques Roadshow”. We all wondered why “Antiques Roadshow”. I will tell the House: he is wedded to the idea of an over-valued, tired out, worn out old Cabinet, and it is the one that he was in. The previous Government and current Opposition would be better taking advice from a singing nun than from the shadow Chancellor or the hon. Member for Streatham.

I urge the House to choose between the past and the future, between despair and hope, between fantasy and reality, and vote for hopeful reality by opposing the motion.

Question put.