Autumn Statement

Julian Huppert Excerpts

Wednesday 3rd December 2014 Commons Chamber

[Mr Osborne]

As I said in my statement, we face a major challenge when it comes to increasing our exports. As the Office for Budget Responsibility made clear, it has been a challenge for the British economy for the past 20 years. If anything, however, the decline in our exports has slowed down slightly in recent years, compared to what was happening under the last Government. Today I have committed myself to a £45 million fund, which will be available both to UK Trade & Investment and to the Foreign Office, to increase our trade links with the new emerging economies of the world, and to support first-time exporters in particular. Lord Livingston is doing a great job as Trade Minister, and I want to back him.

[Dr Julian Huppert (Cambridge) (LD)]

There is much to welcome in the autumn statement, including investment in the NHS and, in particular, investment in mental health. Strangely, that has not been mentioned in any of the questions so far.

I especially welcome the excellent news about the introduction of income-contingent postgraduate loans. I agree with what was said earlier by the right hon. Member for Havant (Mr Willetts). Indeed, when he was a Minister I worked with the National Union of Students and CentreForum to persuade him to do exactly this, so it is great to see it happening. More people from disadvantaged backgrounds obtain undergraduate degrees, but then find that they cannot afford to engage in postgraduate study. This welcome and long-awaited change will lower a barrier to social mobility.

[Mr Osborne]

I thank my hon. Friend for what he has said. I should have been extremely disappointed if my announcement of a big improvement in our support for postgraduate students had not been welcomed by the Member of Parliament for Cambridge. He is absolutely right: the lack of financial support available to people doing post-grads is indeed a barrier, which falls particularly on those from low-income backgrounds, and which has been identified as a real problem in a number of reports on social mobility. I am glad that we have been able to work together to bring about this change.

Oral Answers to Questions

Julian Huppert Excerpts

Tuesday 24th June 2014 Commons Chamber

[Dr Julian Huppert (Cambridge) (LD)]

5. What steps he is taking to ensure that people pay the taxes for which they are liable.

[The Exchequer Secretary to the Treasury (Mr David Gauke)]

Since 2010, the Government have been determined to support HMRC in improving overall compliance levels, tackling tax avoidance, evasion and fraud, and punishing those who break the rules. Overall we are investing about £1 billion in HMRC’s compliance activities, and HMRC achieved record levels of compliance revenues last year, securing £23.9 billion.

[Dr Huppert]

It is a huge frustration to people to see wealthy individuals and large companies avoid paying the taxes that they ought to be paying. I thank the Minister for his comments, but will he go further to make sure that our rules are fit for purpose? Will he tackle, for example, transfer pricing, and ensure that there is an international agreement that benefits Britain and means that people pay the correct amount of tax in this country?

[Mr Gauke]

As the Chancellor made clear a moment ago, it is right that we address these issues, and that we do so at an international level. The Organisation for Economic Co-operation and Development’s important work on base erosion and profit shifting is a consequence of the leadership shown by the Prime Minister and the Chancellor, and we hope that we will see the fruits of that progress beginning this autumn.

Consumer Rights Bill

Julian Huppert Excerpts

Monday 16th June 2014 Commons Chamber

[Dr Julian Huppert (Cambridge) (LD)]

The record will show that the hon. Member for Shipley (Philip Davies) and I do not agree on many issues, but on this one I agree with him completely and utterly. He and I are supporters of the Internet Telephony Service Providers Association, which has had many concerns about abuses in this area. Does he agree that we are talking not just about transparency, but about setting a fundamental rule that such bias simply cannot be allowed? Does he agree that we should support net neutrality throughout and not simply tell people when it is being broken?

[Philip Davies]

It is a red-letter day for me when the hon. Members for Cambridge (Dr Huppert) and for Walthamstow agree with me. I could not have envisaged such cross-party support, and if the Minister is able to withstand that I will be disappointed. We have a political consensus, of which I am usually very suspicious. I agree with the hon. Gentleman that the principle of net neutrality is the most important point. It is not simply a question of transparency; transparency is the minimum that people can expect. With my amendment, I am trying to ensure that we have net neutrality and truly open access to the internet, and to put an end to protectionist and restrictive practices that are against consumers’ interests.

I am referring to services including voice over IP, which is similar to Skype. Voice over IP allows consumers significantly to reduce their phone bills by using voice over the internet, instead of their mobile provider’s phone minutes and messaging services that use mobile data rather than text. It is especially important for consumers that that market works efficiently given Ofcom’s research finding that a quarter of the UK’s poorest households are mobile-only and are wholly beholden to mobile operators’ tariffs to enable them to access crucial services.

It seems perfectly reasonable to me that if a consumer signs a mobile phone contract that offers internet access, he or she should be entitled to use any legal internet service that they deem fit, not just the parts of the internet that suit their mobile phone company. I hope that hon. Members understand that customers who buy a mobile phone package rarely have the time or inclination to read through all the minutiae in the small print, even if they have the foresight to imagine all the services that they might want to use over the two-year life of their contract. Surely, customers have the right to expect that an internet service will do what it says on the tin. Consumers should, therefore, be able to rely on statutory consumer protection regulations to protect them from such abusive practices.

Given the rapid evolution of the internet, I do not think that it would be wise for Parliament to attempt to define everything that the internet is and does for the future, but I am convinced that the current unfettered ability of telecommunications providers, whether they be internet service providers or mobile operators, to decide what customers can and cannot access is harmful to consumers and to the wider economy. As I have outlined, those practices not only create significant consumer harm but stifle competition—for example, in the market for non-geographic and international calls—which leads to exorbitant prices and discourages new entrants to the market.

There is also concern surrounding future innovation and economic growth. If innovators have no certainty that networks will carry their services, particularly if they rival products offered by the networks, companies will be less likely to invest in new services because the return on investment will be unpredictable. How can a provider who wants to build a mobile app have any certainty that the mobile network operator will not block his rival service and/or make it extremely opaque at the point of sale whether consumers can actually access those services? Such things should be of great concern to us, because they will stifle growth in a sector that is incredibly important to the future prosperity of the country.

When I asked representatives from Ofcom about the matter during a Select Committee on Culture, Media and Sport hearing last summer, there was an acceptance that some undesirable blocking was being undertaken by certain mobile operators around specific internet services, and that more needed to be done to ensure that telecommunications providers were transparent and up front with their customers. Ed Richards, the Ofcom chief executive, outlined the industry voluntary code on the transparency of information given to consumers about traffic management practices. I have grave concerns about whether the information that providers are supplying to their customers is helping in any way, shape or form. Ofcom’s research in September 2013 demonstrated that consumers were not aware about traffic management practices when making their purchasing decisions.

Together with the internet code around transparency, the industry has created a voluntary self-regulatory code on maintaining the open internet. I believe that the code is a good one, and it will be an effective tool for protecting consumers and businesses. The significant problem is that some major providers are yet to sign up, nearly two years after the launch of the initiative. Given that there is no obligation on UK telecommunication providers in that area, those providers that are transparent and allow access to services could easily change their minds tomorrow and not be subject to any action.

Therefore, I think it is time that the House recognised that unless more action is taken, certain industry players will continue to use clever marketing tactics and rely on the lack of consumer understanding to mislead their customers, distort the market and damage new and innovative internet services that threaten their own products. That is why I have proposed amendment 19, which would protect consumers from the practices that I have described. The amendment would ensure that anyone selling internet access, or using any similar term, will not be able to rely on any unreasonable or unusual definition of that term to restrict their customers’ access to legal parts of the internet.

I have made it clear, and I am grateful to the hon. Member for Walthamstow for doing the same, that I do not seek in any way to limit the ability of internet service providers to block access to sites for the purposes of child protection. Nor would my amendment prevent internet service providers from offering age-related content blocks where customers request them. I certainly would not want to do anything to change that. That is why I would be happy to support the hon. Lady’s amendment if she seeks to divide the House.

Amendment 19 would give customers confidence that when they sign a two-year contract that offers internet access, they will get full internet access and will not be left with a contract that they cannot get out of that does not do what they thought it would when they signed up to it. It is essential to preserve and protect consumer access to the legal internet. We cannot allow internet service providers to decide for themselves, based on their own commercial interests, what customers can and cannot access while still marketing their service as internet access.

The protection offered by amendment 19 would benefit all consumers, but it would also spur innovation, growth and job creation in a sector that is vital for the future prosperity of the country. Therefore, I urge hon. Members to support my amendment or the amendment tabled by the hon. Member for Walthamstow. I hope that we will not have to press the matter to a Division, because I hope that the Minister will understand the strength of the case that we have made and reaffirm that the Government will deliver on open internet access. If she is not prepared to do that, I hope that the hon. Member for Walthamstow will press her amendment to a vote, which I would support.

Budget Resolutions and Economic Situation

Julian Huppert Excerpts

Wednesday 19th March 2014 Commons Chamber

[George Freeman (Mid Norfolk) (Con)]

It is a pleasure to follow the hon. Member for Bolton South East (Yasmin Qureshi).

I suggest that today’s Budget was a significant and historic one for this country. Twelve months before a crucial general election, it gave the British people a clear choice. It showed through the Office for Budget Responsibility report the success of the last four years’ work of rebalancing and laying the foundations for long-term growth. It showed us a Chancellor and a Government committed to the long-term programme of recovery on which we had embarked. It was a Budget for resilience, responsibility and the real economy.

I particularly want to highlight three elements: first, the extent to which we have finally begun to get on top of the appalling historic legacy of debt that we inherited from the Labour party; secondly, the significant steps that we set out to support science, innovation and export-led growth; and thirdly, the historic package of support for savers and pensioners.

[Dr Julian Huppert (Cambridge) (LD)]

Will the hon. Gentleman add the Cambridge city deal as a fourth point? That will contribute so much to what will help his constituents, as well as mine.

[George Freeman]

I am delighted that the Chancellor has been able to support the Cambridge city deal, which will play a key part in our innovation economy.

We should take time to remember the mess that we inherited four years ago, and the causes of it. The truth is that between 1997 and 2010, we saw the largest increase in public spending as a percentage of national income of any industrialised country. During that period, we rose from 22nd to sixth in the world league table for public spending as a percentage of national income. Before Opposition Members try to argue that that was a result of the global crash—indeed, after they have tried to do that—I should say that if we take the date of 2007, before the crash, we see that our position on the table had risen from 22nd to 10th. That is the second largest increase in history.

That legacy was created by a wilful overspend by the Labour party. It left us, in 2010, with the biggest peacetime budget deficit in our history—a £157 billion deficit and a £1 trillion debt. If we pay off that debt at £1 million a minute, it will take us 30 years. The truth is that everybody in this country is now paying for that. We inherited a situation in which debt interest alone was set to rise to £70 billion a year. When we started, debt interest alone was, in effect, the fourth biggest Department of State, and we were borrowing £1 for every £4 spent. It was an absolute disgrace for the outgoing Labour Government’s Chief Secretary to have left a note with an exclamation mark saying that he thought it was funny that there was no money left. We should remember that. I do not think it is a joke, because we are all paying the price.

That is why I welcome the Chancellor’s announcement of the OBR’s reporting on the progress that we are making in our deficit reduction plan through the 80:20 rule—80% from spending and 20% from tax. These were tough decisions—all of which, we should remember, were opposed by Labour—and they are now beginning to lead to sustained long-term growth. Growth is up to its highest level for 30 years, and we are now the fastest growing economy in the G8. Some 1.5 million private sector jobs have been created—three for every one regrettably lost in the public sector. There has been a 24% fall in unemployment, with the fastest fall in youth unemployment for 20 years. As a result, we are now on track to eradicate the deficit by 2018 and we are paying off debt quicker than any other western economy. That is a record of which we should be proud and a record to which this Budget stands testament.

I want to highlight the important work that the Government are doing from that platform to support our innovation economy. Today’s announcements on science and technology and the knowledge economy included £42 million for a new Alan Turing institute of big data, in which Britain is leading the world; £74 million for the cell therapy manufacturing centre and the graphene innovation centre, putting Britain at the cutting edge of new technologies that will turbo-charge new industries and new business creation; and £106 million for 20 doctoral training centres across the country.

We have an enormous opportunity to trade our way out of the debt crisis by plugging into the fastest growing emerging markets around the world, particularly in the life sciences, in food, in medicine, and in energy. In 30 years, those economies will go through the same industrial and agricultural revolution that we started and went through in 300 years. They represent vast markets for our knowledge economy. That is why I particularly welcome the support for export finance. As a trade envoy and a former business man myself, I know how important it is to support our small companies. We are starting from a woefully and shamefully low base. After 13 years, Labour left us very weakly linked into those emerging markets. We still export more to Luxembourg and Belgium than we do to China. I am delighted that the Government are making such progress.

You do not need to take this from me, Mr Speaker—take it from the business community. The Institute of Directors has said:

“This is a responsible and imaginative budget which should promote growth, exports and investment. It will be widely welcomed.”

The British Chambers of Commerce said this afternoon that the Budget was

“disciplined, focused, and geared toward the creation of wealth and jobs”

and that it “passes the business test”. The CBI has said:

“The Budget will put wind in the sails of business investment, especially for manufacturers.”

I turn to the historic announcements on savings and pensions, with the pensioner bond, the new ISA, the abolition of the 10p rate on savings, the child trust fund, and the increase in the amount that can be invested in the junior ISA.

Pub Companies

Julian Huppert Excerpts

Tuesday 21st January 2014 Commons Chamber

[Toby Perkins (Chesterfield) (Lab)]

I beg to move,

That this House notes that two years have passed since its resolution on pub companies of 12 January 2012; remains of the view that the Business, Innovation and Skills Committee was right to state in its Fourth Report, on Consultation on a Statutory Code for Pub Companies, HC 314, that only a statutory code of practice which included a mandatory rent-only option for pub companies which own over 500 pubs, an open market rent review and an independent adjudicator would resolve the contractual problems between the big pub companies and their lessees; further notes that pub closures are increasing, and believes that the Government should by July 2014 bring forward legislative proposals to introduce a statutory code of practice of the kind recommended by the Business, Innovation and Skills Committee.

For many Members, January in Parliament means two things. First—for some— it means the worthy, if somewhat joyless, challenge of a dry month, and secondly, it means a parliamentary debate about pubs.

This is the third January in a row during which the House has debated the regulation of pub companies. We know that pubs in our local communities are among our constituencies’ most precious assets, and a quick trawl through the press releases expressing MPs’ dismay at the fact that much-loved pubs in their area face closure will reveal immediately what an emotive issue this is, and how passionate our constituents feel about it.

I know that Members on both sides of the House will agree that, economically, socially and culturally, pubs are part of the fabric of our great nation. As well as being community hubs, they make a huge contribution to our fragile economy. Each pub employs an average of 10 people—often young people; often women, including working mums—who are finding it particularly hard to obtain other work. When a pub closes, its local economy loses about £80,000. More widely, the production and sale of beer contributes about £19 billion to the United Kingdom’s GDP, and generates total taxation revenues of £10 billion each year.

Given that a wide body of experts and more than 27,000 other people signed the 38 Degrees petition on pubco reform in just four days, today is one of those—some would argue—all too rare occasions in an MP’s life when he can vote for something that is both popular and right. In the last decade, our expectations of our locals have changed, and consumers now rank food higher than beer or sociability among their reasons for choosing a pub. As I know there is so much common ground between many Members across the House, I shall argue the case for reform in as unpartisan a way as I am capable of. [Laughter.]

[Dr Julian Huppert (Cambridge) (LD)]

Will the hon. Gentleman give way?

[Toby Perkins]

I will, on that conciliatory note.

[Dr Huppert]

I hope the hon. Gentleman will have a chance to take that step. He is right to say that there have been huge problems with pub closures, but as a result of new policies introduced by Liberal Democrat-led Cambridge city council, not only are pubs not closing, but previously closed pubs are able to reopen. Will the hon. Gentleman join me in congratulating the council on its excellent work, which has been supported by the Campaign for Real Ale and many other organisations?

[Toby Perkins]

Of course I welcome anyone taking a positive step in what is an incredibly difficult climate. At a time when there are so many pressures on pubs— 26 are now closing each week—anyone who is able to buck that trend will have our wholehearted support.

Crowdfunding and the FCA

Julian Huppert Excerpts

Wednesday 18th December 2013 Westminster Hall

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

It came as a slightly early Christmas present to learn that I had managed to secure a debate on crowdfunding and crowdsourcing, and the implications for the Financial Conduct Authority’s current inquiry into the regulation, or the possible need for regulation, of crowdfunding.

I came to crowdfunding in a rather peculiar way. I kept hearing people talking about it, and I am a serial and committed social entrepreneur. In fact, the other day a journalist said that I must be one of the few MPs who own a church, a poet’s house and a pub, all through trusts, foundations or charities that I chair.

As I say, I am a social entrepreneur and social entrepreneurs always want money. I do not mind asking rich people, big corporations, trusts and foundations for money, but sometimes—especially since 2008—it has been harder raising money from those sources than it was before.

Increasingly, I heard about social impact investment and crowdfunding, so I decided that I needed some more information. I got in touch with the House of Commons Library, but the staff there said they had never heard of crowdfunding; it was the first time that the staff of the Library of this great House has ever said that it could not help me. I then tweeted about crowdfunding, and all sorts of interesting people pitched up in the House of Commons and started to educate me about it. We formed the Westminster crowdfunding forum, we have an all-party group on crowdfunding and non-banking finance, and suddenly we have what I think is the first debate on crowdfunding in Parliament; I am grateful that we have it.

What is so exciting about crowdfunding is that it gives power to the crowd—to ordinary people—to say that there is a problem in their community and that they can form a small group to head something up. They can form a community enterprise and they can fund it through the crowd on the internet, on a platform; there are now many platforms out there that enable crowdfunding. Some of them specialise in education, others in financing films and theatre, and others in community enterprises. However, that is only one side of crowdfunding.

For me, crowdfunding is one of the most vibrant, exciting and important industries to appear in the past decade. The possibilities of crowdfunding are endless, first because all of us know that most people who are entering employment in this country today will work for small and medium-sized enterprises. If we can have more and more SME start-ups and they can grow successfully, the country will be so much wealthier and so much more successful.

The fact is that start-ups have the most difficulty in getting money from the conventional banks. Very often, the banks have failed them, because start-ups have no track record and no history; consequently, banks are very cautious about lending money to them.

Crowdfunding enables and empowers people who want to start a business to do it in their own way, and to raise the money to do so. It often starts with friends and family, and then a wider range of people become excited about the enterprise and put a little bit of money in to help it start. The history of the last few years has been that many more businesses have started up successfully using crowdfunding and the new social media to reach out to a broader audience and involve them in a very interesting way.

Crowdfunding is the practice of funding a project or venture by raising many small amounts of money from a large number of people, typically via the internet. However, people become confused about what is crowdfunding and what is not. I will talk briefly about four kinds of crowdfunding.

First, there is equity crowdfunding. It is very simple indeed. Someone wants to start a business and they give a share in their business to someone else. It may be worth a fiver, or fifty quid, but it is usually only a small amount—an amount that I am sure you, Mr Chope, and I could afford to put into an enterprise that we believed in and that might make us money in the longer term. It is also possible for someone to invest in the little corner shop that they do not have in their village or community, or in a failing pub that the community wants to take over. There are lots of enterprises that crowdfunding can help.

However, there is the very interesting issue of starting businesses—private sector businesses. There is nothing wrong with starting businesses. As chairman of both the all-party group on manufacturing and the all-party group on management, I am a passionate supporter of well-managed enterprises and start-ups.

Equity is one way that crowdfunding works; someone can invest money in that way. However, it is also possible to borrow and lend money through the internet and crowdfunding; that is the second form of crowdfunding I want to discuss. Some people in the peer-to-peer lending area are a little cautious about being called part of the crowdfunding empire, but—in broader terms—they certainly pitch up to the Westminster crowdfunding forum. Such lending allows people to borrow money at very low rates of interest, and it also allows people to lend money at quite high rates of interest. People might think that is impossible, but the fact is that we have a system that gets rid of the intermediary. It is peer to peer—very direct. There is no big bank, with glass panels and marble halls, to go into, or a network of branches of banks, with all the people that have to be employed in them. There is a very simple relationship, and it means that the facility to lend and borrow money is made quite radically different.

Thirdly, there is rewards crowdfunding. That is the kind of crowdfunding that you, Mr Chope, and I might be most interested in; I realise that I am interpreting your wishes in saying so. Rewards crowdfunding means that someone asks someone else to help them with an enterprise, such as the John Clare Cottage Trust, which I am involved with and which is a national centre for learning outside the classroom. We run a campaign called every child’s right to the countryside. What we do to raise money is to ask people, “Will you adopt a school in less affluent area of the country, whose pupils would benefit from coming to the countryside and learning in the countryside for a day?” We look to crowdfund up to £500 to bring a whole school class to the countryside for a day. We can do that by offering rewards, because we not only give the reward of a day in the country to the pupil but—as we will do in the new year—we will give a limited edition of John Clare’s love poetry to those giving money. It is a collection of poems that were never published in his lifetime, because they were a little steamy for Victorians. We can give the reward of a limited edition, or free entry to the lovely John Clare poet’s house in Helpston, which is right next to Burghley house. So, with rewards crowdfunding, people do not get their money back, but they get the engagement, and the reward might be, at the bottom end, with a small amount of money, a mug or a tea-towel. Further up the scale, there are more substantial crowdfunding rewards.

Fourthly, there are donations. Mr Chope, you will know about the success of justgiving.com, which is estimated to have raised £3 billion for good causes, in direct donations. As I say, there are various types of crowdfunding, and I hope that I have educated those attending this Westminster Hall debate about them.

Crowdfunding gives all of us access to the money to make things happen. According to a recent report—published only this week—by the charity Nesta, Cambridge university and the university of California, Berkeley, the alternative finance sector raised £939 million in the UK in 2013. That is a hell of a lot of money, and it was up by 91% from the £492 million raised in 2012. The UK alternative finance market provided £332 million-worth of early stage growth and working capital to more than 3,700 start-ups and SMEs in the UK in 2013 alone. So this sector is not small beer; it is big and it is going to grow.

If we play it right, the UK is likely to become the centre of crowdfunding in the world, partly because the United States, in its haste to regulate crowdfunding, has, many argue, strangled the baby at birth. That is the truth; the US has overregulated and made it almost impossible, certainly for equity crowdfunding, to carry on.

Those of us who are passionate about crowdfunding want to make this appeal: whatever the Financial Conduct Authority does in regulation—it is currently consulting—it must get it right. We are not against all regulation, but it must be appropriate, and it must be quite soft regulation. It can be effective, but if we go down the US route, we will lose the opportunity to have one of the biggest growth sectors and most interesting phenomena of the modern economy.

The FCA should not present an obstacle to the growth of the sector. The criticism that I am getting is that if the FCA is not careful, it will take the “crowd” out of crowdfunding. I am not against the FCA. I was quoted in The Independent earlier this week or late last week as asking for a halt to the consultation process. I did not say that; I never spoke to the journalist in question, and I do not believe that. The consultation process is good, and we have certainly had a good face-to-face relationship with the FCA over many months; we just want to ensure that we get it right, and that is what this debate is partly about. We want to ensure that we do not make a mistake.

Certain language used by the FCA and people around it would I think horrify your constituents, Mr Chope, as it would mine. The FCA suggests that only “sophisticated” investors should have access to crowdfunding; in other words, those who have a relatively high net worth. The FCA’s consultation paper makes a distinction between retail and sophisticated investors. That kind of language makes me nervous, because it is insulting to ordinary people, suggesting that they do not know how best to invest a little bit of money.

My constituents can go down to a bookie’s, play fixed-odds betting, and lose thousands in a day. Those machines are dreadful things, and I have campaigned against them. My constituents can also go next door and borrow money at ruinous rates of interest from payday lenders. They can go online to gamble and, especially at Christmas, spend a lot of money that they do not really have. Why should ordinary people not be able to put a fiver, £10 or even £50—small amounts—in something that they think will grow?

I will give an example that might interest you, Mr Chope. A plethora of universities are now getting into crowdfunding. If your university is like mine, Mr Chope, the only time you hear from them is when they want some money. That angers a lot of people, because that is the only communication that they have with their alma mater; I am looking at the hon. Member for Cambridge (Dr Huppert) on that.

Crowdfunding allows universities such as the university of Huddersfield—university of the year last year and entrepreneurial university of the year the year before—to be able to have a crowdfunding relationship, so that when graduates and postgraduates come through, they can say, “Not only can we help you find the money for your start-up business, our first port of call is our alumni, who might want to invest back in a new generation of entrepreneurs coming out of their university.” There is so much excitement here.

There is a common-sensical way of having regulation that does not cause damage. I want to make it clear today that there has been a good dialogue with the FCA. I hope that it is listening to what we are saying. I also hope that the Treasury, the Department for Business, Innovation and Skills and all the other people in government who know about the issue will learn about it and realise the enormous potential for growth in the British economy.

Crowdfunding can bring communities back to life. Political parties have hardly any membership. There are low levels of voting in general and local elections. Here is something through the social media—look at 38 Degrees and its achievements—that will reinvigorate our communities, grow them and make them wealthier, and will be a new way of funding social and economic activity in our country.

[Dr Julian Huppert (Cambridge) (LD)]

rose—

[Mr Christopher Chope (in the Chair)]

Does the hon. Member for Cambridge have the consent of both the hon. Member for Huddersfield (Mr Sheerman) and the Minister?

[Dr Huppert]

indicated assent.

[Dr Julian Huppert (Cambridge) (LD)]

Thank you for calling me to speak, Mr Chope. I will try to be brief. I congratulate the hon. Member for Huddersfield (Mr Sheerman) on securing this important debate. I also pay tribute to my noble Friend Baroness Susan Kramer, who did a lot of work in this area before her elevation to a ministerial role, which has somewhat curtailed it.

The sector is huge; we can read about just how big it is in the excellent “The Rise of Future Finance: The UK Alternative Finance Benchmarking Report”. I am delighted that Cambridge was able to play a part in that; £939 million is a large sum of money. The sector is also incredibly varied. In my constituency, for example, SyndicateRoom is doing equity crowdfunding, and the Future Business Centre is using social impact bonds to build an entire building for social enterprises. RealVNC, a software company, was set up though merchandising; it sold products with its logo on to get the money to build a better product. There is also Frontier Developments and its game, “Elite: Dangerous”. Those are all crowdfunded. The area is so varied that there is a huge challenge for regulation.

The sector must be regulated to avoid problems—none of us wants to hear the story of the granny who loses all her savings on something like that—but we must ensure that the regulation is not disproportionate. We must ensure that we have principles regulation, not firm tracks that lock everyone down and kill off the excitement, as the hon. Member for Huddersfield said. That is my aim.

The Government are supportive; I will finish with a quote from my right hon. Friend the Secretary of State for Business, Innovation and Skills in response to the excellent benchmarking report, “The Rise of Future Finance”:

“Alternative finance is playing an increasingly important role in helping businesses access the finance they need to grow and contribute to the economy.”

Let us ensure that that can continue.

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

rose—

Autumn Statement

Julian Huppert Excerpts

Thursday 5th December 2013 Commons Chamber

[Mr Osborne]

I will look at the hon. Gentleman’s specific point. We are expanding the scheme to help small businesses export, which is one of our central objectives. If we can go further, I will happily look at that and take it forward in the Budget, because that is our shared objective. We want more exports, but the issue is that our main export markets have been in a deep recession for the past year. It is not surprising, unfortunately, that exports have been hit. That has led to companies exploring opportunities much further afield. One of the best things to do for small exporters is to ensure that, when they turn up in places such as Shanghai, there is a helping hand, with facilities and an office available for them to start their search for partners. That kind of thing is precisely what we are funding today.

[Dr Julian Huppert (Cambridge) (LD)]

I warmly congratulate the Chancellor on the Government’s commitment to delivering the Greater Cambridge gain share, allowing us to unlock £1 billion of investment, providing much-needed sustainable transport and affordable housing and enabling Cambridge to continue to contribute to the British economy. Will he join me in congratulating Cambridge city council, the county council, South Cambridgeshire district council, Cambridge university and the local enterprise partnership on their work in delivering this?

[Mr Osborne]

My hon. Friend and the Leader of the House, my right hon. Friend the Member for South Cambridgeshire (Mr Lansley), raised with me the Cambridge city deal, which is a really good plan. I can be absolutely candid with him: we worked hard to announce it today, and although we did not quite get it over the line we hope to do so in the next few weeks. It is a classic example of a good local authority and local MPs working with the national Government to secure a long-term plan that will help create jobs and housing in an incredibly important city.

National Infrastructure Plan

Julian Huppert Excerpts

Wednesday 4th December 2013 Commons Chamber

[Danny Alexander]

The hon. Gentleman asks an important question. Let me address it briefly. On Royal Mail, he will know that 10% of the shares are owned by the employees, which I think is an extremely good step that has not been taken before in the sale of national assets. The Government should not own assets that they do not need and in which investment could be made more effectively in the private sector, particularly when their sale would release receipts that could then be used to invest further in our critical national infrastructure. That is why we are raising our target for sales from £10 billion to £20 billion. I think that we have been under-ambitious in the past. There are assets that could be sold, such as the Government’s stake in Eurostar. No final decision has been taken on that, but we are working towards ensuring that we can put those assets into the private sector, where they can be better run and better managed, and use the resources for the infrastructure projects contained in the plan.

[Dr Julian Huppert (Cambridge) (LD)]

I very much welcome the announcement that the A14 toll will be scrapped and congratulate my right hon. Friend on listening to me and so many others on that. I also welcome the Renewable Energy Association’s comment that today is a good day for renewable electricity and renewable heat. Will he continue to campaign for this Government to be the greenest ever and resist any temptation to do anything else?

[Danny Alexander]

I am grateful to my hon. Friend for his remarks on the A14. It is fair to say that he has been one of the most assiduous campaigners in the House for the toll to be dropped, alongside many other hon. Members from the east of England. I certainly maintain my commitment both to renewable energy and to ensuring that this Government are the greenest ever. With the first green investment bank, the first renewable heat incentive, the strike prices and incentives for renewable energy and the many other policies we have announced, we are well on the way to achieving that objective.

Investing in Britain’s Future

Julian Huppert Excerpts

Thursday 27th June 2013 Commons Chamber

[Dr Julian Huppert (Cambridge) (LD)]

There is much to welcome in the statement: increased funding for affordable housing, science and green investment—it is all excellent. The announcement on the A14 will be welcomed by many. There is a long history of schemes for that road coming and going, while the poor design continues and the Huntingdon viaduct is well beyond its design life. Can my right hon. Friend confirm whether it will be a toll road? I certainly hope that it will not be. Can he be clear on that point?

[Danny Alexander]

The road will be taken forward according to the plans set out previously. That will include some tolling for new capacity.

Spending Review

Julian Huppert Excerpts

Wednesday 26th June 2013 Commons Chamber

[Mr Osborne]

Because the road schemes that we committed to at this Dispatch Box got their planning permission, or are getting it, and the construction is starting. Some of those road schemes have been completed. The same is true with the schools and all the other pieces of infrastructure. One of our big problems was the complete absence when we came into office of a bunch of plans that were ready to go and had planning permission. We have had to do all that. I am all for speeding up Whitehall and the planning process, but I seem to remember that the Labour party voted against the planning reforms. So when we try to make those changes, which the former Chancellor was good enough to acknowledge are needed because of all the problems that previous Governments have had, actually he has opposed them.

[Dr Julian Huppert (Cambridge) (LD)]

I was delighted to hear confirmation that the unfair schools funding formula will finally change. Schools in Cambridgeshire have been underfunded for decades and pupils there now get the least of pupils anywhere in the country—they get £600 less than the average. I am very grateful for this money, as all the pupils in Cambridgeshire and other counties will be. When will that extra money start to arrive in our schools, which so desperately need it?

[Mr Osborne]

The Education Secretary and the Minister for Schools, the right hon. Member for Yeovil (Mr Laws), will set out details of how the formula will work. It is certainly our intention to introduce it in this Parliament, but we shall consult on it. Obviously it is a complex reform, but we have set out the ambition and the principles today, and the Department for Education will now take it forward.