Oral Answers to Questions

Julia Lopez Excerpts

Thursday 1st October 2020 Commons Chamber

[Mr Speaker]

I welcome Minister Lopez on her first outing at the Dispatch Box.

[The Parliamentary Secretary, Cabinet Office (Julia Lopez)]

Thank you, Mr Speaker. This Chamber has changed in many ways since I went on maternity leave, but I am glad to say that the atmosphere has markedly improved for the better thanks to your warmth and good humour.

The Government are committed to levelling up opportunity in every corner of the United Kingdom, including as we respond to the economic impacts of covid-19. This work has many strands, from the winter economy plan to protect jobs and businesses to the lifetime skills guarantee and the investment we are making in major regional infrastructure. In the Cabinet Office, we are playing our part through our Places for Growth strategy, locating more high-quality civil service jobs beyond the capital so that the Government are better connected to all the communities we are here to serve.

[Paul Bristow]

I welcome my hon. Friend to her place on the Government Front Bench.

The Government plan to bring decision making “close to people”. Peterborough is a city just 50 minutes from London. It is on the east coast main line and has a bustling hospitality and retail sector and a hard-working and skilful population, and a university is coming. Can my hon. Friend think of a better place for a civil servant to work than Peterborough? Will she consider the city in the latest round of civil service moves?

[Julia Lopez]

I thank my hon. Friend for his passionate pitch for his city. We completely agree with him that Peterborough, with its fantastic transport links, entrepreneurial people and broader economic offering, would be a great place for a new Government hub. That is why we are locating one at Fletton Quays, where I hope to visit next week to demonstrate our commitment to locating more civil service roles in the regions and nations of the UK.

[Antony Higginbotham]

Constituencies such as mine have for too long been left behind, with London taking the lion’s share of infrastructure and small and medium-sized enterprise finance. That means that good, viable businesses in Burnley are left to grow at a slower speed than if they were elsewhere in the country. Does my hon. Friend agree that development banks, which are such excellent mobilisers of capital, could prove a solution to that problem?

[Julia Lopez]

My hon. Friend has been a fantastic champion of Burnley’s small businesses since his election. The Government are determined to reduce imbalances in access to finance for smaller firms. Some 83,000 SMEs outside London have already benefited from programmes run by the British Business Bank, which is the UK’s Government-owned economic development bank. Infrastructure is also central to our economic plan, providing opportunities for SMEs throughout the supply chain. We will publish a national infrastructure strategy, including our ambitions on levelling up across the whole UK, later in the autumn.

[Mark Logan]

Pubs and restaurants in Bolton have been harder hit than those in nearly any other of the UK’s 650 constituencies, largely due to an unfairly enforced economic lockdown. Will my hon. Friend assure me that the Government are doing everything they can to support businesses in Bolton? I urge the Government to align our restrictions with those in the rest of the region.

[Julia Lopez]

I thank my hon. Friend for his question. It is an incredibly challenging time for constituents in Bolton North East and in many other areas of the country, and I know they will appreciate his advocacy. Local lockdown decisions are determined following advice from national medical experts, local leaders and directors of public health, in accordance with data provided by the Joint Biosecurity Centre. We consider case rates, trends in the data and causes, but also local geography, before making judgments about whether restrictions are needed. We of course keep all these measures under constant review.

I share my hon. Friend’s concern for the hospitality sector, and I have spoken to the Under-Secretary of State for Business, Energy and Industrial Strategy, my hon. Friend the Member for Sutton and Cheam (Paul Scully), about the taskforce he is setting up as Business Minister to work through some of the issues for the night-time economy in particular.

[Joy Morrissey]

In Beaconsfield, many of my constituents work in aviation or other sectors directly affected by covid-19. What steps are the Government taking to ensure that anyone who finds themselves unemployed due to businesses having to adapt or close because of covid-19 can find the education and qualifications they need for the future?

[Julia Lopez]

The new Member for Beaconsfield is another very refreshing change in this Parliament, and I thank her for her question. She might wish to point her constituents to the Chancellor’s plan for jobs, which is designed to help unemployed people find work through training to develop their skills. That support includes incentive payments for employers to hire new apprentices and funding to triple the uptake of traineeships. The Prime Minister also set out his commitment this week to lifelong learning. As part of that, adults who do not have a full level 3 qualification will be able to take level 3 qualifications in high-value subjects for free from next April.

[Paul Howell]

I also welcome the Minister to her place. Economic growth in the regions will be maximised by the public and private sectors working in partnership. Currently, there are 92,000 civil servants in London, 56,000 in the north-west and only half of that in the north-east—and two thirds of those are in Newcastle, leaving negligible numbers in Durham and the Tees Valley. Does she agree that any relocation of Government Departments to the regions can be a critical lever and that it is important that they do not all now just move to another metropolitan centre? It is imperative that Departments such as the Department for Transport and the Ministry of Housing, Communities and Local Government consider locating to areas such as Sedgefield, which sits on the intersection of the Tees valley and County Durham and has all the rural challenges, but also has excellent connections to London.

[Julia Lopez]

I thank my hon. Friend for his question. He also makes a passionate pitch for his constituency. The Government are committed to levelling up across the UK, ensuring that this Administration is much less London-centric. The Places for Growth programme is working with Departments on their relocation plans ahead of the spending review and continuously exploring opportunities to build clusters of civil servants across the whole UK. I welcome my hon. Friend highlighting what Sedgefield has to offer, and I am sure the north-east will benefit from the relocation of civil service roles.

[Matt Vickers]

There is an amazing world of opportunities, talents and skills outside London, and nowhere more so than in Teesside. We are on the up. Our airport is reborn. We are leading the green technology revolution. We have the brightest and best entrepreneurs, manufacturers and exporters. We are fighting for a freeport and gagging for growth. Could my hon. Friend confirm not if but when civil service jobs from Whitehall will make their way to Teesside?

[Julia Lopez]

Another very passionate case—perhaps a bit too passionate. It is incredible to see how firmly Teesside has been put on the map over the past few years because of its Mayor and hon. Friends in this place, and it is great to see my hon. Friend the Member for Stockton South (Matt Vickers) join their number. The Government are committed to relocating 22,000 civil service roles out of central London within the next decade, with the majority going to other regions and nations of the UK. We will continue to engage with the Mayor and others to ensure that the north-east benefits from our ambitions.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

What assessment he has made of the adequacy of (a) supplier performance and (b) value for money achieved under Government contracts issued in response to the covid-19 outbreak.

[Ian Byrne (Liverpool, West Derby) (Lab)]

What assessment he has made of the adequacy of (a) supplier performance and (b) value for money achieved under Government contracts established in response to the covid-19 outbreak.

[The Parliamentary Secretary, Cabinet Office (Julia Lopez)]

The private sector has played a vital role in the Government’s response to the covid-19 outbreak, such as delivering over 15,000 ventilators in under four months to support the NHS and changing production facilities so that by December we expect that UK manufacturers will be meeting 70% of the demand for personal protective equipment, compared with just 1% before the pandemic. Being able to procure at speed has been critical in providing that response. However, we have been clear that all contracts, including those designed to help tackle coronavirus, must continue to offer quality public services and achieve value for money for taxpayers.

[Debbie Abrahams]

The Minister’s response says more about the Government’s failure to implement the recommendations of Operation Cygnus than it does about their ability to implement an effective response to the pandemic. The Government have bypassed the NHS, outsourcing billions of pounds-worth of contracts in back-room deals with their mates that then failed to deliver—failed to deliver PPE that fits on time, failed to deliver the testing capacity that is needed and failed to deliver a national tracing programme that contacts everyone affected. The Government’s actions are not just incompetent; their failure to comply with transparency obligations is potentially unlawful. Therefore, will they stop wasting more taxpayers’ money defending the indefensible and provide my lawyers with the information on these contracts that my co-complainants and I have requested?

[Julia Lopez]

The DHSC has procured over 32 billion items from UK-based manufacturers and international partners—an incredibly difficult task at an incredibly difficult time. We received over 24,000 offers of help from 15,000 individual suppliers, and all were prioritised according to volume, price, clinical acceptability and lead time, meaning the time from an offer being accepted by the DHSC to a supplier delivering the items. Of course I am happy to look into any offer of help from a business that was found wanting, but I refer the hon. Member to the view outlined by the Chair of the Public Accounts Committee, the hon. Member for Hackney South and Shoreditch (Meg Hillier), who praised the Department’s response to procurement.

[Ruth Cadbury]

Track and trace services, when led by experienced public health teams, have been more effective, and at lower cost, than the outsourced system in NHS England. In Wales, the contact rate for track and trace is over 90%, whereas in England, it hovers at a little over 70%. When will the Government recognise the importance of value for money and redirect their multimillion-pound procurement towards long-established local health networks?

[Julia Lopez]

It has been an extremely challenging time, as I have said, and the private sector has been a valuable partner in everything we have done. The contracts awarded have been extremely valuable in ensuring that we can deliver capacity at pace. If the hon. Lady has any concerns, I am happy to look into them.

[Ian Byrne [V]]

The Minister will be aware that the Competition and Markets Authority is now investigating the proposed merger of two outsourcing giants in the facilities management industry: Mitie and Interserve. Given that both companies hold Government contracts worth over £2 billion, what steps is she taking to review the implications of the merger, considering the clear risk to public funds, as well as to the terms and conditions and future employment of over 80,000 workers?

[Julia Lopez]

I am afraid that the Competition and Markets Authority is not within my remit, but I am happy to look into any concerns, because contracts and procurement performance are within my remit, and I want to ensure that we receive value for money for the taxpayer in everything we do.

[Helen Hayes (Dulwich and West Norwood) (Lab)]

I understand that the Government’s contract with Sitel for test and trace is renewed on an eight-week basis, with a two-week notice period. The next deadline for renewal is this Sunday, 4 October. Will the Minister publish all the renewal dates for Sitel and Serco’s contracts, and will she explain what justification the Government could possibly have for continuing with the failed privatised, centralised model of test and trace, by contrast to the effectiveness of local councils and public health teams, who are denied the full funding that they require?

[Julia Lopez]

As I have said, without the private sector, we would have struggled to deliver the testing capacity that we now have. Serco and Sitel are approved suppliers on the Crown Commercial Service’s contact centre framework, and they gain their places through fair and open competition via Official Journal of the European Union procurement. Value for money and capability were part of the assessment criteria. But if there are other suppliers that would bid well for the contracts, we are happy to look into that.

[Helen Hayes]

Government spending on consultants has risen sharply in recent years, up by around £1 billion since 2016, with contracts worth at least £56 million awarded without competitive tender during the covid crisis. Does the Minister agree with her colleague Lord Agnew that the Government are reliant on consultants who are providing poor value for money because of their vastly inflated cost when carrying out services that could be conducted more efficiently in-house? If so, can she tell the House when the review into current controls and spending limits will begin, and when it will report?

[Julia Lopez]

Consultants play an important role in what the Government try to achieve on particular projects, but the hon. Lady is right: we have concerns about the cost of those consultants and whether we are too reliant on them, and we are actively reviewing that. I am working with my colleague Minister Agnew on these matters.

[Sir George Howarth (Knowsley) (Lab)]

What recent discussions he has had with his counterparts in the EU on visa arrangements for British workers at the end of the transition period.