Rural Phone and Broadband Connectivity

Debate between Julian Smith and Julian Sturdy

Tuesday 3rd February 2015 Commons Chamber

[Julian Smith]

I agree. That is a valid point and I acknowledge my hon. Friend’s expertise on this topic.

I pay tribute to the Government for the £10 million fund for innovation—North Yorkshire has one pilot project called Airwave—but the exceptional broadband Minister may need to dig a little deeper over the coming months and years in order to top up that fund and get a few more pilot projects going. I pay tribute to LN Communications in North Yorkshire, which, through David Hood and other investors, is trying to deliver solutions.

[Julian Sturdy (York Outer) (Con)]

My hon. Friend is making a powerful speech and he is absolutely right to champion the success—a lot of which is down to the Minister—in delivering broadband to a number of communities in North Yorkshire and York over the past few years. Does my hon. Friend agree that it is critical that we ensure that those last few remaining rural communities without high-speed broadband in his constituency and mine can get connected? A digital divide is materialising and this is about getting the last penny we can out of the funding.

[Julian Smith]

Absolutely. That is a well-made point. This is not just about the Government’s responsibilities; people are taking responsibility themselves. The B4RN project—Broadband for the Rural North—split between Lancashire and Yorkshire has sought out all of the disused wires and cables to make the most of the opportunities to deliver superfast broadband.

We have not yet discussed the issue of demand, demand stimulation and how much superfast broadband is being used by our communities. On average, the figure is 18% to 20%, and in North Yorkshire it is about 20% to 25%, but we need to get those numbers up. The Opposition criticised the Government for an ad campaign over Christmas, but the Government were absolutely right to spend that money. What is the point of all the pipework and infrastructure if they are not going to spend money to encourage people to use it?

NHS Funding (York and North Yorkshire)

Debate between Julian Smith and Julian Sturdy

Wednesday 7th January 2015 Westminster Hall

[Julian Sturdy]

I entirely agree with my hon. Friend. Given the rurality of the whole of North Yorkshire, which I mentioned at the start of my speech, we know that providing health care services is difficult and expensive. That is part of the argument for why the funding formula must be adjusted. At the same time, it must be more cost-effective to deliver services in people’s homes and offer more accessibility. Nevertheless, as my hon. Friend will know from the situation in her constituency, it is important that we also keep small hospitals open and accessible. I know that that is an important issue in the constituency of my hon. Friend the Member for Skipton and Ripon. This debate is all about ensuring that we have a fair formula so that we can deliver those services.

[Julian Smith (Skipton and Ripon) (Con)]

On that point, when we are here in London it is difficult for people fully to comprehend the distances involved for both patients and their families in North Yorkshire. The local provision from the hospital in Ripon and Castleberg hospital in Settle in my constituency is valued really highly by families and patients alike.

[Julian Sturdy]

My hon. Friend is absolutely right that that is fundamental to a fair health care system and to fair health care for all. Through this debate I want to show how important that is for our area. We need a fair funding system that can deliver health care across not only York and North Yorkshire but the whole country. We must ensure that areas such as York and North Yorkshire do not suffer while others benefit. That is why we must get the funding formula revised.

Returning to IVF, the treatment now offered by Vale of York CCG does not help those who have been denied access to treatment, as have many people in my constituency over many years. They have either paid thousands of pounds privately or are now past the eligible age criteria for access to IVF. Despite that welcome news from the CCG, people living in our area had no access at all to IVF treatment for some time.

Alongside certain procedures that have been denied to many of my constituents, another area that has really felt the strain is A and E, which has hit the headlines in the past 24 hours. I wholeheartedly welcome the Government’s £700 million increase to the NHS budget to deal with well-known winter pressures. That shows the Government’s foresight: they knew that the issue was looming and so put that money in. Nevertheless, altering the funding formula would also help areas that are constrained by their budgets, because A and E funding ultimately comes through CCGs.

Finally, I want to turn to the controversial issue of clinical exceptionality and the impact that it has had on several of my constituents. Where a treatment is not routinely commissioned by the local health authority, clinicians must submit individual funding requests on behalf of their patients, which are then decided by a special panel. In order to achieve funding, the GP is required to prove that their patient is clinically exceptional from the referenced population. Or, to put it more plainly, they must be suffering more than other sufferers of the same condition.

That is, just as it sounds, an extremely difficult task for already busy GPs. It also results in an extremely tragic situation wherein a small group of people who suffer with a rare condition slip through the net and do not receive the treatment that their doctors feel that they need. Their condition is too rare for the particular treatment to be routinely commissioned, but not rare enough to prove that they are clinically exceptional and therefore eligible for individual funding.

One young constituent of mine suffers with severe gastroparesis, as well as diabetes. His devastating condition effectively prohibits his stomach from doing the job that it is supposed to do. As a result, he feels almost permanently nauseous and vomits up to 30 times a day. His clinicians believe that the most effective treatment for him is to have a gastro-pacemaker fitted at a cost of £25,000. That may seem like a lot of money, but as my constituent is unable to work and his mother has had to leave work to care for him, the cost to the state is far greater each year. The alternative treatments that he currently receives, such as morphine, also come at great cost to his health and well-being.

I have been working for some time on behalf of my constituent and alongside his clinicians to try to obtain the necessary funding for the treatment he so badly needs. The most frustrating thing for him is to know that other patients under the same clinicians, who do not suffer as badly as he does, are being accepted for funding because they live in areas that do much better out of the existing formula than York. Sadly, I fear that the lack of funding in our area is causing the individual funding request panel to interpret the rules of clinical exceptionality much more rigidly than our neighbours in, for example, Leeds.

My nine-year-old constituent Ben Foy, of Strensall, has also been a victim of the deeply unsatisfactory situation. Ben suffers with narcolepsy and cataplexy after having the swine flu vaccine, and he is known to fall asleep suddenly up to 20 times a day. Along with Ben’s family and clinicians, I have tried numerous times to obtain funding for sodium oxybate to treat his condition, but we were repeatedly told that we had fallen short of proving his clinical exceptionality.

To sum up, as it stands the funding formula is clearly causing a disparity in how health care is delivered across Yorkshire, as well as across the country. It is imperative that we move toward a funding formula that gives much greater weight to age and that recognises rurality and its associated higher cost of health care provision, while scaling back on the amount given for deprivation. We cannot continue to have, as was previously the case with PCTs, CCGs in the deprived areas of Yorkshire and the Humber receiving substantially more per capita and consistently under-spending their allocation, at the expense of CCGs in areas such as mine. Time and again, we are seeing patients being refused or pushed away from treatment because of the funding formula.

Ultimately, I accept that it is a difficult decision for the Government, the Department of Health and the Secretary of State. Along with colleagues, I have met the Secretary of State and Ministers numerous times to discuss the issue. As I say, I know that it is a difficult decision, but I fundamentally feel that we have protected the NHS budget during the past five years and we have seen more money go into the NHS over that time, which is the right thing to have done, but now we must ensure that we have a funding formula that backs that investment up and can deliver a fair health care system for all.

Local Government: Combined Authority Orders

Debate between Julian Smith and Julian Sturdy

Tuesday 18th March 2014 Commons Chamber

[Julian Sturdy (York Outer) (Con)]

I join colleagues on both sides of the House in welcoming the Secretary of State’s creation of combined authorities. Far from stepping back and passively surrendering to the unyielding rise of London, with its increasingly dominant role in our economy during the past 30 years—which I know the Secretary of State would never do—the Government are rightly taking the necessary and vital steps to tackle the north-south divide head on.

The reality is that all major conurbations that have worked towards the combined authority status have, in their day, been global leaders in their respective field—steel production in Sheffield, shipbuilding in Newcastle and Liverpool, cotton spinning in Manchester, which was the world’s first industrialised city, and woollen textiles in Leeds, which in 1770 handled one sixth of the country’s entire export trade.

Alas, an illustrious history alone is not enough to sustain jobs in today’s fast-paced and frenetic global economy. We are, as has rightly been pointed out many times, in a global race, not just with our established rivals, such as New York, Paris and Tokyo, but with the new emerging business centres of the east, such as Dhaka in Bangladesh, Hyderabad in India and Guangzhou in China, a city of some 14 million people of which many in this country will not have heard. Providing our major northern cities with the tools they need to compete, not just against London but against everyone else in the international marketplace, is therefore essential to the future economic prosperity of the north and the rest of the country at large. Combined authorities show every sign of being successful in future, provided that the well-being of local residents and the long-term interests of the business community remain at the centre of their decision making.

While I am clearly in favour of combined authorities in principle, and although it undoubtedly makes sense for Leeds, Bradford and the surrounding west riding authorities to join together, I am not yet convinced that York’s destiny lies with the West Yorkshire combined authority. For those Members who are not aware, York is not, and has never been, part of the west riding. Although its economy is undoubtedly intertwined with that of Leeds and the surrounding region, its connections with the rest of North Yorkshire run deeper still, as I know the Secretary of State, being a fellow Yorkshireman, is well aware.

It is with North Yorkshire that York shares its police force and its fire and rescue services. Indeed, as has been touched on already, York has no boundaries with West Yorkshire whatsoever, encircled as it is by the North Yorkshire districts of Selby, Harrogate, Hambleton, Ryedale and East Riding. How, then, is York placed to benefit meaningfully from its membership of the West Yorkshire combined authority when it lies at the heart of North Yorkshire, and in more ways than one?

[Julian Smith]

My hon. Friend is making some powerful points. In his summary of all the fantastic elements of York and North Yorkshire, will he pay tribute to the work of Barry Dodd and the local enterprise partnership, which has been leading the way in ensuring that we get inward investment and new businesses set up in both York and North Yorkshire?

[Julian Sturdy]

I thank my hon. Friend for that timely intervention. He is absolutely right. The York, North Yorkshire and East Riding enterprise partnership has taken amazing strides forward, ably led by Barry Dodd, and it is doing great work. It is really important for the LEP that York plays a key role within it, and rightly so.

As York does not share contiguous boundaries with the rest of the West Yorkshire combined authority, it is now to be a non-constituent member without voting rights. The residents of York will presumably have to contribute funds to the combined authority—there is still some uncertainly over that—but they will not possess a vote on important matters. What safeguards will be put in place to stop those taxes being used to improve transport priorities in West Yorkshire, rather than in York?

Ultimately, it seems to me that we need not only a West Yorkshire combined authority, but a North and East Yorkshire combined authority, to act as an essential counterbalance and to support the rural hinterland that York sits at the centre of—geographically, culturally and economically. In essence, York is the heartbeat of that rural hinterland of North Yorkshire, and removing it could have far-reaching economic consequences.

[Julian Smith]

Is not that why it is so surprising to hear the shadow Minister’s complete lack of understanding of the economic ties that bring together the highly rural areas I represent and the outskirts of York that my hon. Friend represents?

Rural Broadband (North Yorkshire)

Debate between Julian Smith and Julian Sturdy

Wednesday 8th January 2014 Westminster Hall

[Julian Sturdy (York Outer) (Con)]

It is a proud pleasure to serve under your chairmanship for the first time, Mrs Main. I am delighted to have been given this opportunity to debate rural broadband in north Yorkshire.

Before speaking specifically about York and north Yorkshire—the most beautiful area within God’s own county—may I touch briefly on the wider broadband roll-out? I am pleased that, as part of their long-term economic plan, the Government have recognised that the future of our economy rests on the ability of our infrastructure not only to cope with the demands placed on it, but to exceed those demands and facilitate new opportunities for growth. This is no less true of superfast broadband than it is of our rail, road and air infrastructure.

The Government’s investment in superfast broadband is, to my mind, one of their greatest and most important achievements in this Parliament, yet sometimes it does not get the plaudits that it deserves. It has by no means been an easy task. It has required huge investment from the Government, totalling roughly £1.6 billion, and some hard work from all those involved in organising the roll-out, including the people physically on the ground, upgrading the telephone cabinets with the fibre.

However, all the hard work and commitment has been worth it. The recent findings from the UK broadband impact study reveal that for every £1 the Government invest in broadband, the UK economy will benefit by £20. That represents fantastic value for money in the short term. In the short term, the network construction will add around £1.5 billion to the economy, creating 11,000 jobs this year alone. In the longer term, it will increase annual gross value added by £6.3 billion. Its benefits will be spread across the country, with approximately 89% of that in areas outside London and the south-east, such as York and north Yorkshire. That vindicates the Government’s commitment to investing so much in this programme and shows that all the hard work that is being put in on a local level is delivering real results.

The roll-out has not been without its problems and it has faced some public criticism for the degree to which one company has achieved a monopoly over the roll-out contracts. There is also some concern about the apparent shortcomings in the contracts, with BT being obliged only to upgrade telephone cabinets with their fibre-to-the-cabinet approach. Some of my constituents have expressed concern that, because they receive their telephone lines from an upgraded cabinet, they are being counted by BT as though they were part of the 90%, despite being too far away from the cabinet to receive the upgraded superfast internet speeds.

However, I have received assurances from the chief executive of BT Openreach that that is not the case, and that only those who receive superfast speeds are counted. Superfast North Yorkshire has subsequently clarified that, although there may be issues about how coverage is measured in other parts of the country, the north Yorkshire contract only counts those who are capable of receiving superfast speeds.

Locally, the roll-out so far has been a roaring success. The project, which has been overseen by Superfast North Yorkshire, has been run well. When it first set out on its mission, it had a total of 670 cabinets to be upgraded—I think the technical term is “deployed”—but, to date, 350 cabinets have been upgraded, which marks 52% of the total. However, it is expected that this figure will rise to 370 next week, ensuring that the project is well over halfway to completion.

In north Yorkshire, roughly one cabinet is updated per working day. As a result, phase 1 of the roll-out is expected to be completed by October 2014, well ahead of the national target, which originally intended to provide only 90% of all households with speeds of up to 25 megabits per second by the end of 2015. That target now appears to have been pushed back, and phase 1 might not be achieved nationally until the end of 2016. Will the Minister clarify that? What might that do to the expected release of phase 2 funding?

[Julian Smith (Skipton and Ripon) (Con)]

I congratulate my hon. Friend on securing this debate. He paints a positive picture, with which I agree, of how north Yorkshire is delivering superfast broadband because of the Conservative-led Government’s money. Does he agree that the National Audit Office report, which was very critical of the Government and BT, surprisingly did not even consult on the north Yorkshire example and that in future the NAO should look more closely at what we are doing in north Yorkshire?

[Julian Sturdy]

I entirely agree with my hon. Friend. North Yorkshire’s achievements are a glowing example of what can be done at local level. I am surprised that north Yorkshire was not part of the investigation.

Take-up of superfast broadband in north Yorkshire is outpacing the national average by a considerable margin. After 12 months, take-up in the north Yorkshire intervention area is 13.4%, which proves that Superfast North Yorkshire’s demand-stimulation activity is working extremely well. It also demonstrates that there is latent demand for superfast broadband in the rural areas around north Yorkshire and York. I am sure that north Yorkshire colleagues here today can testify to that and have many examples from their constituencies.

The achievements of Superfast North Yorkshire are remarkable given that it is dealing with one of the country’s most rural counties. The county’s rurality, however, also has its drawbacks. Although I have no doubt that Superfast North Yorkshire will meet its 90% coverage target well before the rest of the country, I remain concerned that there is a deepening digital divide between the 90% and the 10%, who appear to be being left behind by phase 1 of the roll-out.

I see the divide first hand in my constituency. Communities such as Haxby, Wigginton, Dunnington and Elvington are already enjoying the benefits of superfast speeds, which are coming soon to areas such as Wheldrake. Even small, quiet villages in my constituency, such as Rufforth and Stockton-on-the-Forest, have recently had their cabinets upgraded, yet there remain a number of small communities in my constituency that are sadly too far from the local cabinet to benefit. Those communities include Askham Bryan, Askham Richard, Hessay, Acaster Malbis, parts of Naburn and Holtby to name a few.

A constituent of mine from Askham Bryan informs me that the maximum download speed he can obtain is 1.2 megabits per second, which is typical of the rest of the village. He says:

“1.2 mbps permits basic web usage such as email and relatively slow browsing. However, any attempt to stream data-hungry applications such as live TV are not possible. Multiple users online at the same time in the same household also seriously compromises the performance of even basic applications.”

My constituent relocated to Askham Bryan from London without moving jobs, under the presumption that the investment in broadband in the region would enable him to access facilities such as web-based video conferencing, which have become the norm for many and would suit the flexible working arrangements that he has put in place for himself.

True to form, Superfast North Yorkshire has been excellent at engaging with our local rural communities, and the chief executive officer has met Askham Bryan parish council to discuss the problems it faces and the potential solutions. In the specific case of Askham Bryan, it is increasingly likely that other technologies, such as fixed wireless, 4G or satellite broadband, will need to be deployed to provide the village with the speeds it needs and deserves. The parish council has contacted independent wireless broadband providers, which have explained that the technology is available to the village and is relatively simple to implement. The lack of certainty on the future direction of the roll-out, however, has prevented the parish council from going any further.

That point is important because the wireless broadband providers appear to be willing to invest their time and money if there is a chance that BT will subsequently upgrade the village’s cabinet. As such, much greater clarity is needed on the future of the roll-out, so that communities on the wrong side of the digital divide are able to plan their next steps based on certainties rather than possibilities.

NHS Funding (York and North Yorkshire)

Debate between Julian Smith and Julian Sturdy

Tuesday 18th June 2013 Westminster Hall

[Julian Sturdy]

I entirely agree with my hon. Friend. That is why in my short contribution this afternoon I will focus solely on age.

We must note that under the previous Government the funding formula was changed and more money put into the national health service. In addition, deprivation was given more weight in the formula. On paper, ensuring that deprivation is the most important factor, seems, morally, the right thing to do. However, I believe that when that reasoning is put into practice it starts to fall down. The distortion within the funding formula has resulted in some areas being awash with money, leading to well-publicised vanity health care projects, such as the one in Hull, with its 72-foot ocean-going yacht at the cool price of £500,000. At the same time, York and north Yorkshire have consistently struggled, as ably put across by the hon. Member for York Central, to balance the books, which has resulted in their continuing to take difficult decisions about health care provision.

An example of such decisions is that the primary care trust had to stop offering routine relief injections for sufferers of chronic back pain. That decision has had a massive impact on the quality of life of many of my constituents—it has hampered their ability to work and has affected carers. I have raised that issue previously in this Chamber, yet people are again coming through my surgeries, as I am sure they are through the surgeries of other hon. Members here today, suffering from a lack of access to those important injections. The decision is consequently putting more financial pressure on areas such as welfare, and that far outweighs the cost savings made by local authorities under the funding formula. That demonstrates the lack of joined-up thinking under the current system.

It costs approximately eight times more on average for the NHS to care for a patient who is over the age of 85 than one who is in their 40s. York and north Yorkshire, as my hon. Friend the Member for Selby and Ainsty (Nigel Adams) has set out, has one of the highest population of over-85s in the north, and my constituents are really suffering under the current formula. York and north Yorkshire also has a high number of care homes, and a typical GP practice states that 50% of home visits can be taken up just by care home residents, even though that group makes up only 2% of the patients on its roll.

I therefore urge the Minister, through NHS England, to review the current funding formula, to ensure that age is given more weighting.

[Julian Smith]

Was my hon. Friend not appalled, as I was, that when as a group of north Yorkshire MPs we sought clarification about why the NHS Commissioning Board had not given weight to the new Advisory Committee on Resource Allocation formula on age, we were told that the minutes of the meeting in which the decision was made could not be released, against the interests of all the people in our constituencies?

Yorkshire (Tour de France)

Debate between Julian Smith and Julian Sturdy

Tuesday 18th December 2012 Westminster Hall

[Julian Smith (Skipton and Ripon) (Con)]

It is a pleasure to have secured this debate under your chairmanship, Mr Gray, particularly with your strong links to north Yorkshire and my constituency.

Without doubt, 2012 has been one of the greatest years in British sport. We have hosted the Olympic games in London. Our Olympians achieved the best medal haul since 1908—65 medals, including 29 golds. Super Saturday, 4 August, was undoubtedly Britain’s best athletics night. My noble Friend Lord Coe described it as “the greatest day” of sport that he had ever witnessed. It was a great Olympics for Britain and a great Olympics for Yorkshire, as we romped home with the largest number of medals for the UK.

Andy Murray has become the first British man since 1936 to win a grand slam. In golf, there was Europe’s nail-biting Ryder cup win, and Rory McIlroy has had another incredible year. There are many examples of success from across our country and our sports. Most importantly, the 2012 Paralympics were declared the greatest ever. They have had a massive impact on the perception of disabilities in athletics and in our society more generally. This has been a golden year of sport: it has produced not only brilliant results, but Olympic heroes who are inspiring people, young and old, to take part in sport and engage in exercise, which is the best way to stay fit and live longer.

The games have also shown that Britain is second to none in hosting and running great sporting events. Sport opens doors—it did so for me as a junior squash international, and it has done so for Britain this year. It has been the most incredible advert for our nation, character, values, companies and spirit. The Minister was one of the few people who were behind the most incredible games in history. I pay tribute to the work that he has done to ensure that the year 2012 will never be forgotten in world sporting history.

Of all the sporting achievements during this amazing year, cycling success stands out. I am told that the atmosphere in the velodrome was electric, although I could get tickets only for Greco-Roman wrestling. The roll-call of success could go on and on—Sir Chris Hoy, Victoria Pendleton and Laura Trott, to name but three, and of course the man who won the BBC sports personality of the year on Sunday, Bradley Wiggins. He received almost half a million votes, which again shows the popularity of cycling. It was a fitting end to 2012, during which he became the first Briton to win the Tour de France and his fourth Olympic gold. His success has inspired many to get on their bikes. Cycling is well and truly riding high: on the eve of the new year, Britain is at the top of its sporting game and is riding high on a sea of lactic acid and adrenaline.

Against that backdrop, we have had the most incredible news from Yorkshire. Last week, it was announced that the grand départ of the Tour de France, the world’s largest annual sporting event, will come to the north of England for the first time. The tour will wend and weave its way across Yorkshire on 5 and 6 July 2014, before coming to London and going on to France. It has been the most monumental achievement to win this event. Welcome to Yorkshire, the region’s tourism body, began working on a bid to host the tour, in partnership with Leeds city council, in 2011. The bid had fierce competition from Scotland, Barcelona, Germany, Utrecht and Florence. Yorkshire has had high-profile support from Mark Cavendish, Team Sky’s Ben Swift and Olympic gold medallist Ed Clancy, as well as three key historic Yorkshire riders—Malcolm Elliott, Brian Robinson and Barry Hoban.

[Julian Sturdy (York Outer) (Con)]

On Mark Cavendish’s support for Yorkshire’s bid, does my hon. Friend agree with his comment that Yorkshire

“is one of the most beautiful parts of not just England but the world”?

[Julian Smith]

I of course agree with my hon. Friend, and I hope to describe that beauty in my speech.

Health Care (North Yorkshire and York)

Debate between Julian Smith and Julian Sturdy

Wednesday 1st December 2010 Westminster Hall

[Julian Sturdy (York Outer) (Con)]

It is a pleasure, Mr Leigh, to serve under your chairmanship. Naturally, I am grateful to those hon. Members attending this debate and to the Minister.

More than 800,000 people are fortunate enough to live in our beautiful part of the country, the North Yorkshire and York region. It is part of God’s own county, as some would say. Quality of local health care is of the utmost importance to many, if not all. Local health care provision is often viewed alongside other criteria such as employment and crime. It is a measure of the local community’s economic well-being and happiness—a word that seems to be floating around in many debates at the moment.

It is in our moral and economic interests to ensure the widest availability of health services, the shortest waiting lists and the most impressive health outcomes, and they should be implemented in each and every region. Ensuring such health care standards for all is truly one of the most essential roles of Government. Indeed, I am sure that all those Members here today will agree that health-related concerns crop up frequently in our constituency mail. That is certainly so in my constituency of York Outer.

When it comes to health, I often have nothing but sympathy with the majority of my constituents who are affected. Many of them feel betrayed by the system, weighed down by the bureaucracy, frustrated by the delays and ultimately let down by those supposedly in charge. In my experience, it is easy to comprehend such frustration. After all, our national health service is a national treasure. We champion it, and rightly so. However, when patients report negative experiences and local health funding concerns, our national treasure is in danger of being tarnished, to the detriment of health care users and service deliverers. That, in my view, should not be allowed to happen.

The health service has some of the most caring, compassionate and hard-working nurses and doctors in the world. That is certainly true in North Yorkshire and York. Our health care personnel carry out tremendous work, often in tough circumstances, and they do so out of a sense of public duty, kindness and compassion. I cannot commend these individuals highly enough. However, I am concerned about health care provision in North Yorkshire and York because of the representations that I have received from NHS employees and local patients.

The region faces some real health care difficulties. In truth, extremely serious concerns are growing about the capability and performance of the region’s primary care trust and related bodies. Local residents have good reason to believe that a huge range of treatments will be withdrawn, if they have not been withdrawn already. For example, I have received letters regarding the future of IVF treatments, counselling services, broken voluntary sector contracts and the withdrawal of pain relief injections. It also appears that about £2 million will be cut from GPs’ budgets for prescribing medications, and that some physio services are at risk.

[Julian Smith (Skipton and Ripon) (Con)]

I congratulate my hon. Friend on securing this debate. He might be about to discuss this, but my experience from my constituency is that North Yorkshire and York PCT’s way of dealing with voluntary organisations in the past few months has been a disgrace, breaching the voluntary compact between those organisations and the PCT. It has caused problems for those important parts of the big society that have been operating in North Yorkshire for so long.

[Julian Sturdy]

Absolutely. I agree entirely with my hon. Friend. The time limit given by the PCT to those voluntary organisations is despicable, and it has caused fear and concern in the sector. Not only that, if the organisations lose funding for six months, which might be seen as only a short period, the problem is that they might not start up again. That is my concern, and I will go on to discuss it in more detail.

Local residents have good reasons to believe that a huge range of treatments will be withdrawn, as I said. If the truth be told, the status quo is not only unacceptable but frightening, particularly for the most vulnerable members of our communities. Even describing the current situation as a postcode lottery is too generous. I fear that our patch is in danger of becoming an area of health deprivation.

Several different factors require deep consideration as we piece together this somewhat depressing picture. First, we must accept that the region has to some extent been underfunded in the past. Before 2008, the North Yorkshire and York PCT did not exist. Instead, four separate PCTs covered the area. Nevertheless, for the purposes of this debate, I have amalgamated funding data to show the PCT’s current funding allocation and the annual figures stretching back to 2003-04. For 2010-11, our region’s PCT received just over £1.1 billion, an allocation that places it in the lowly position of 140th out of 152 PCTs. From a starting point of 127th in 2003-04, it has dropped down the funding table each year. The current funding level is the lowest allocation per head of all Yorkshire and Humber PCTs.

PCT funding is currently allocated according to a complex funding formula, often referred to as the weighted capitation formula. In essence, the formula determines the target share of resources to which PCTs should theoretically be entitled, based on a broad range of criteria including population, the local cost of health care provision and the level of need and health inequality in the area. Unfortunately, most PCTs never receive an allocation equal to their deemed target share according to the formula. Rather, they move towards it over time, some faster than others.

Personally, I am slightly critical of the current formula. It often results in greater funding disparities between different regions, which provoke a profound sense of unfairness. Less deprived areas often seem to get a certain tag as well. For example, according to the formula, North Yorkshire and York does not have adequate need for additional resources, particularly compared to the needs of more urban areas such as Hull. I am not convinced that approaching regional health funding consideration with that mentality—judging whether areas are deprived enough—is a sufficiently robust methodology in current circumstances. We must look more deeply at the funding stream.

I agree that the funding shortfall has increased the strain on our local PCT and its ability to deliver the best possible health outcomes and equity access for local residents. I would appreciate the Minister’s comments on whether the coalition Government will review the funding formula at some future date. However, I also suggest that excusing our health care failings in our region on past funding alone would be somewhat naive. Over the past few years, North Yorkshire and York PCT has accumulated an overspend of some £17.9 million. Thus, despite the coalition’s welcome commitment to protect the wider health budget, services are being cut in our region to pay for the fiscal irresponsibility of the PCT. Moreover, the PCT seems to be intent on resolving this deficit immediately because the previous Government imposed a statutory obligation on all primary care trusts to break even by the beginning of 2011. Such a target-focused piece of bureaucracy has now resulted in the PCT cutting too many services too quickly, possibly leading to a diminished health care package for our local residents.

I have already listed some of the services that are under threat of withdrawal. My hon. Friend the Member for Skipton and Ripon (Julian Smith) has named the services in the voluntary sector as well. I shall expand on a few examples. First, there is the withdrawal of the pain relief injections. As Members from neighbouring constituencies know—my hon. Friend the Member for Selby and Ainsty (Nigel Adams) has campaigned with me on this—the PCT’s decision to restrict the provision of back pain relief injections has provoked a huge reaction from both patients and health care professionals alike.

Employment Law (Businesses)

Debate between Julian Smith and Julian Sturdy

Wednesday 3rd November 2010 Commons Chamber

[Julian Smith]

My hon. Friend is absolutely right. A close friend of mine is starting a new business and she told me the other day that her business adviser suggested she should hire people on short-term contracts to avoid the pitfalls of having permanent staff. At the key moment when we need hundreds of thousands of new jobs, the advice to a budding entrepreneur is to avoid permanent staff if they can.

According to the World Bank’s “Doing Business” report, employing workers in the UK has become harder every year since 2007. The report shows that UK labour market flexibility has slipped down the international league table from 17th in 2007 to 35th in 2010. The UK is now behind many European countries, including Switzerland and Denmark, as well as Australia, Canada, the United States and others, on labour market flexibility.

Even those figures do not take into account the effect on small businesses of the sheer worry about these burdens or of the realities of a world in which Britain will be under increasing pressure to compete for internationally mobile business jobs. Small business owners worry about this stuff. That is why they are good at what they do—because they are worriers. By putting so many worries and concerns around the key assets of their business—staff and people—Governments have forced them to spend less time on their businesses. Tom Bannister, who runs the Coniston hotel near Skipton, does not have an HR department, so each employment change that comes from this House takes him away from running his hotel and outdoor centre. We need hard-pressed owner-managers such as Tom to be lying in bed at night worrying about things like the spa development he is currently considering rather than whether they have dealt adequately with the “protected characteristics” of their employees as determined by the Equalities Act 2010.

[Julian Sturdy (York Outer) (Con)]

Like my hon. Friend, I have a number of businesses in my constituency who have contacted me with similar concerns. They want to grow their businesses and create jobs, which is surely what we want in these difficult times, but if we continue to tie businesses down with red tape and bureaucracy, we will prevent that. It is important to get away from that approach.

[Julian Smith]

I thank my hon. Friend for those comments. It is not just small companies that are affected: the cumulative effect of the measures is also significant for bigger businesses. Before I came to the House I was a head-hunter who worked with some of the biggest companies in the world. I saw how easy it was to put a senior employee in an international location rather than in the UK. I have a long list of examples whereby, when it came to choosing between London, New York or Asia, London came last. The cost of managing and getting rid of staff often tipped the balance in favour of another location. That just happens without fanfare or fuss, and that is why, like our tax and immigration policies, our employment policy must be ruthlessly competitive. The competition that the UK faces is becoming intense. Over the next few years we desperately need people to take the risk, set up businesses, invest in existing ones and create jobs here in Britain.

Labour increased its depressing legacy of employment law in its dying days, with measures on agency workers, the Equalities Act 2010 and additional paternity leave. Each measure will have a major effect on British business. For example, the new dual discrimination laws, with limitless liability, mean that employers will have to focus even more on protecting themselves, and, with discrimination law changing so often and widening to include more and more employees, is it any wonder that entrepreneurs fear taking on their first member of staff?