Self-Employment

Karen Lumley Excerpts

Tuesday 24th January 2012 Westminster Hall

[Mark Garnier]

I am sorry; the hon. Gentleman is talking about extending it to micro-businesses. Yes, all this has to be put into the mix of things that we need to look at. It is important to consider any way that we can help more micro-businesses.

FSB members say that our tax system is detrimental to their ability to make capital investments in their business, which again is another reason why people are being held back.

On a wider social point—sticking with tax complexity—it is worth noting that a complex tax system allows a huge range of opportunities for tax avoidance and tax evasion, which makes it extraordinarily complex for Her Majesty’s Revenue and Customs to collect tax and ensure that we avoid the tax gap, which is estimated at anything between £40 billion and more than £100 billion a year. The rest of us have to pay for that tax gap and lack of revenue through increased taxes.

Half of small businesses spend at least two hours every week complying with their tax responsibilities alone and for 10% of businesses, particularly small micro-businesses, that can take up to six hours per week—six hours when those businesses should be capturing new customers, developing new products and investing in their future.

Two thirds of businesses feel that they need professional help to complete their tax returns, which costs them on average an extra £3,000 a year. One third of them find that national insurance in its various forms is difficult to understand. Half of businesses find allowances difficult to get to grips with. Frankly, it is all far too complicated and too expensive in man hours and financial resource to administer.

Regulation is the second area of extreme unrest for micro-businesses. According to the World Economic Forum’s global competitiveness report, the UK is ranked 89th out of 139 for the burden that regulation places on businesses. Aside from the obvious problem of possibly deterring inward investment, the overburden of regulation, especially in the realm of employment law, is cited by businesses as a reason not to expand.

In a business survey in 2008—that was some time ago, but it gives a good idea of trends—a third of businesses thinking about expanding cited fear of regulation as a significant headwind to be faced in expansion and therefore a key factor in their decision. The same survey revealed that half of businesses planning to downsize or close rated regulatory burden as important in their decision to do so. The 2008 survey was undertaken in difficult trading conditions, but regulatory burden should not be a significant factor when businesses are struggling to stay alive in a difficult environment.

Possibly more worrying is the fact that in the 2009 business survey 34% of businesses that were no longer employers cited complying with legislation as a reason for no longer employing staff. This is madness.

[Karen Lumley (Redditch) (Con)]

In my constituency, I have been working closely with small businesses. Does my hon. Friend agree that they feel isolated, with a perceived lack of business support around them?

[Mark Garnier]

Yes. Being a small business man is quite an isolating experience, as many hon. Members will know. People are out there on the front line, struggling to get more business in. They can join network groups and all the rest of it, but they feel like they are in a foxhole, with letters in brown envelopes coming at them from HMRC and all sorts of regulators. That is not necessarily a particularly enthralling experience. My hon. Friend is right.

In addition to accountants and tax specialists to handle tax compliance, a plethora of organisations offer advice on human resources, fire and emergency, health and safety and other things. All that is welcome and they provide an excellent service, but the fact that they are needed and that a sub-class of business advice has been created shows the amount of regulation that we have to face.

The Government have made some progress on access to finance and cash flow. I do not want to be an apologist for the banking crisis. I have to declare an interest here. I was an investment banker and one or two other hon. Members here were, too. It is important to understand that banks have an aversion to risk. Part of the problem faced by the banks is that the Basel III and the Vickers’ recommendations, and so on, are trying to deal with the problem of not wanting the banks to fail. On one hand the banks are being asked to tighten their balance sheet, and on the other they are, rightly, being asked to lend more money. For the banks, those are opposing requests. We need to take great consideration of that as we go through the process of implementing the recommendations of the Independent Commission on Banking, because we cannot ask the banks to take on more risk and expect them not to go bust. That is a contradiction.

Girls (Educational Development)

Karen Lumley Excerpts

Tuesday 29th November 2011 Westminster Hall

[Esther McVey (Wirral West) (Con)]

It is a pleasure to serve under your chairmanship today, Mrs Main, in this important debate on the development of confidence for girls in school and the importance of role models to the future career paths of young girls. The debate is important to every schoolgirl in the country. The outcome and agreed actions need to take effect to ensure that girls achieve their full potential. As Mrs Robinson, the headmistress of West Kirby grammar school, has said, we have to encourage girls to have a can-do attitude from as young as possible, perhaps from year 7. Many schoolgirls lack confidence in themselves and their ability, and while boys think that they can, girls think that they cannot.

I have worked in the area for the past decade with schoolgirls, women-in-business organisations and through academic study and research. Today, I hope to bring to the debate not only my experiences, but those of my colleagues, renowned academics, Girlguiding UK, which, with more than 500,000 members aged four to 25, is the biggest voluntary girls’ organisation in the country, teaching professionals and business women who mentor other business women and schoolgirls. I will also talk about the findings from a recent Ofsted report titled, “Girls’ careers aspirations”.

My personal journey resulted in my writing a careers guide for girls called, “If Chloe Can”. The book was written to help provide an array of role models for girls, showing them examples of inspiring women from different backgrounds who all excelled in their careers. The book has now become a play to inspire girls and to show them what they are capable of achieving with hard work and determination. The play is now being done with the National Youth Theatre, which found a young writer, Karla Crome. She is only 23 and was delighted to write the play, which helped her along her playwriting path. There is also a group of young female actresses, who are also gaining experience to help launch their careers. All that is consistent with the theme of building confidence through doing and achieving in a supportive environment, while being helped by role models.

The female role models who took part in the play and the career book totalled some 100 women, who are some of the most successful women in the UK and the world.

[Karen Lumley (Redditch) (Con)]

Does my hon. Friend agree that we, as Members of Parliament, also have a great deal to offer as role models? I am mentoring six young girls in Redditch, and I learn a great deal more from them than they learn from me.

[Esther McVey]

My hon. Friend has an excellent point. As female MPs, we are role models. To become an MP, someone has to be one in 100,000 people, and there are so few of us here, which relates to the cycle of learning that she has discussed. Knowledge from one generation can be passed to the next.

I was impressed by how openly and honestly the 100 successful women that I have mentioned talked about confidence, the need to develop it and how important it was for them in achieving in life. They compared confidence to a muscle that needed to be worked out through repetition of small, ever-increasing achievements. From those accomplishments, they developed a mental power—a power based on ability, achievement and a track record, further enabling them to strive for success.

Confidence can be difficult to describe. Helen Fraser, chief executive of the Girls’ Day School Trust groups of schools, past managing director of Penguin Books and two-time winner of “Publisher of the Year”, explained it as follows:

“There are many interrelated aspects to confidence, but there are two I would highlight as particularly important for girls, and which schools can help girls develop. The first is having the confidence to take risks, to ‘feel the fear and do it anyway’. Schools can nurture this by encouraging girls to take small risks—to stand up in front of a crowd and make a speech”—

like I am doing today—

to direct and produce plays, to take part in debates, to take on challenges like the Duke of Edinburgh’s award. These kinds of experiences make girls much more confident about risk, and risk is absolutely essential in working life.”

Oral Answers to Questions

Karen Lumley Excerpts

Thursday 17th February 2011 Commons Chamber

[Vince Cable]

In a way, that is what the New Economics Foundation is there for.

[Karen Lumley (Redditch) (Con)]

10. What assessment his Department has made of the administrative burden on businesses of the process for issuing export licences.

[The Minister of State, Department for Business, Innovation and Skills (Mr Mark Prisk)]

Export licensing needs to be thorough, especially where there are sensitive locations or uses. However, it is important that the Government continue to focus on keeping the costs to business down and we intend to do that.

[Karen Lumley]

Small businesses in my constituency of Redditch wishing to export to China have been victims of excessive red tape and delays in securing an export licence. One company has been waiting for months in respect of an order from China that would generate revenue and employment for the west midlands. Will the Minister take steps to reduce administration burdens on small and medium-sized enterprises and meet me and the company affected?

[Mr Prisk]

I should be more than happy to meet my hon. Friend. As she knows, two thirds of all applications are dealt with within 20 working days, but as she will appreciate this is sensitive equipment to a sensitive location. We need to ensure that we license only legitimate exports in these circumstances. I am pleased to say, however, that in this instance the licence has been granted.

Schools Funding (Worcestershire)

Karen Lumley Excerpts

Tuesday 1st February 2011 Westminster Hall

[Karen Lumley (Redditch) (Con)]

I begin by saying what a privilege it is to serve under your chairmanship, Mr Gale. I seek leave from you to allow my colleagues to speak.

[Mr Roger Gale (in the Chair)]

Order. I am slightly distracted and I apologise to the hon. Lady. Any hon. Member who seeks to speak must have the permission of the hon. Member in charge of the debate and the consent of the Minister. I trust that the speeches have been cleared with the Minister as well.

[Karen Lumley]

Yes, they have.

At the outset, I declare an interest as chair of governors at Vaynor first school in my constituency. I want to speak for a few minutes and then invite my two Worcestershire colleagues, Mr Robin Walker and Mr Mark Garnier, to speak. Like me, they have a keen interest in this debate.

[Mr Roger Gale (in the Chair)]

Order. I am sorry to interrupt the hon. Lady again. We shall get started in a minute, and fortunately we still have a full half-hour. I remind her that she must refer to hon. Members by their constituencies and not by their names.

[Karen Lumley]

Fairer funding in Worcestershire has been a long-running crusade of mine, ever since I came to the county in 2000, when we moved from Wrexham in north Wales to Redditch. At the time, both my children were happily and successfully educated in the state sector in Wales, so it came as quite a shock when we realised that their education in Worcestershire did not seem to carry the same monetary value as it did in Wales. By that, I mean there was obviously something of a funding gap between what was provided to every child in Wales and what was provided to children in Worcestershire, which was far lower. Perhaps the Minister will shed some light on that issue.

I became a governor at Vaynor first school in Redditch, where the situation was worse than I thought. The school provided a good education to our children, but without many of the necessary resources. Added to that was the competition that we faced with neighbouring authorities to attract extra staff. That was due to our lack of funds and available means compared with other schools.

Worcestershire has constantly been near the bottom of the league tables, and in 2008-09 the average funding per pupil per year in Worcestershire was £3,729 compared with £4,066 nationally. This year, it is £4,028 compared with £4,388 nationally. While £300 does not seem to make a great deal difference in this day and age, it is a significant amount when applied to each individual pupil across Worcestershire.

Locally, things are worse. As the Minister may know, Redditch is on the outskirts of Birmingham, and currently schools in Birmingham are allocated at least £700 more per pupil than Redditch. Although I understand that there are intervening factors, £700 is a huge amount of money per pupil when one considers what sports equipment, after-school clubs, arts, science or reading materials could be provided for each child.

For a school such as Vaynor first school, which has 403 pupils, the funding disparity means that about £285,000 more would go to a similar school in Birmingham. Furthermore, with our current budget of just more than £1 million, we can see just how unfair the funding gap is. Cumulatively, that money could allow the school to provide one-to-one teaching for struggling students or provide extra resources.

Of course, Redditch will benefit from the Government’s pupil premium initiative, which I welcome with open arms. I am pleased to see that the most disadvantaged pupils will receive an extra helping hand. That is especially important in Redditch where there are some deprived areas. I wholeheartedly agree with the Secretary of State for Education when he said:

“Schools should be engines of social mobility.”

We have a duty to ensure that the school system in the UK nurtures and provides for our young people to give them the best possible chances from an early age. Today, I have written to all head teachers in Redditch, asking them to contact parents to ensure that those children who are entitled to free school meals are aware of the help available.

[Harriett Baldwin (West Worcestershire) (Con)]

I congratulate my hon. Friend on securing this debate, which is so important to the future of children in Worcestershire. Does she agree that free school meals are not a good measure of deprivation in Worcestershire, particularly where rural schools no longer offer a dining room and therefore cannot offer free school meals?

[Karen Lumley]

I totally agree. We have to start somewhere, and perhaps as this Parliament progresses we will think of a fairer way of dividing the available money.

Redditch has the added problem of having been “red-flagged” by the Audit Commission on health and education issues. That is another factor for Redditch to deal with, in addition to those that I have already mentioned. The Government need to take a variety of factors into account when allocating funding, and I urge the Minister to recognise that. Some areas have slipped through the net, where funding is concerned. Although I understand that money is not the be-all and end-all, it goes a long way in sorting out some key issues.

I also realise that the solutions cannot all be provided by central Government, and neither should they be. My constituency staff in Redditch and I help out by mentoring young people from a local secondary school, which is the same school that both my children attended. We help those pupils to discuss any problems that they may have, encourage them to achieve their aspirations and offer them reassurance.

In conclusion, I am passionate about education, and I want to ensure that young people who attend school in Redditch—and indeed across the UK—get the best education that can be provided. We all know that children get only one chance, and we should help them to achieve the best they can. Although the Government are making significant improvements to our school system, we still have some way to go, mainly by ensuring that funding for schools is allocated in a fair and just way for the benefit of every child rather than according to the political jostling of central Government.

Funding and Schools Reform

Karen Lumley Excerpts

Wednesday 17th November 2010 Commons Chamber

[Karen Lumley (Redditch) (Con)]

Thank you, Mr. Speaker, for the opportunity to speak in this very important debate. Education is vital not only to the future of our children and young people, but to the future of the UK as a whole. Our economy depends on nurturing the best and brightest talents, and we should ensure that each and every child, no matter their background or social situation, has access to the very best education that we can provide.

I should like to declare my interest in this debate. I am chairman of governors of Vaynor first school, which is one of the largest first schools in the country with 408 pupils. The Secretary of State may remember visiting Vaynor with me a couple of years ago. Yesterday, I received an e-mail from its head teacher. She wrote:

“I could kiss Michael Gove! He has cancelled Financial Management Standards in Schools.”

Although it would not be proper for me to echo both sentiments in that statement, I firmly support the Government’s move to cancel needless micromanagement. As chairman of governors, I fully understand the issues surrounding fairer funding for our schools. The Government’s long-term plans for a simpler funding system are welcome. There is a definite need to tailor funding for schools in each area, not base funding allocation on a complicated and arbitrary system that overlooks local needs.

There is also a large disparity between the funding allocated to similar schools in different areas of the country. It has not escaped my notice that the constituency of the Leader of the Opposition receives per pupil funding of £4,083; the constituency of the right hon. Member for Southampton, Itchen (Mr Denham) receives per pupil funding of £4,265; and even higher is the guaranteed per pupil funding of £4,317 for the constituency of the right hon. Member for Kingston upon Hull West and Hessle (Alan Johnson). Redditch, on the other hand, receives only £3,864. The schools of those right hon. Gentlemen who put forward today’s motion receive on average almost £300 more than schools in my Redditch constituency.

[Mr Robin Walker (Worcester) (Con)]

My hon. Friend makes a powerful point on behalf of the schools of Worcestershire. May I add one more statistic to her figures? There is a £760 per pupil gap in funding between pupils in Worcestershire and the neighbouring authority of Birmingham. Her constituency in Redditch and mine in Worcester include some of the most deprived wards in the country. Both were represented by Labour Members in this House for 13 years, and people in those communities were on a 13-year promise of fairer funding. Will my hon. Friend join me in welcoming this Government’s intention to review the funding formula? If Opposition Members turn their backs on funding reform, they will be turning their backs on some of the neediest communities in Worcestershire.

[Karen Lumley]

I agree with my hon. Friend. I urge the Government to ensure that funding is fair and that schools across the country have equal access to the piggy bank. I also welcome the Government’s plans for the pupil premium and the £2.5 billion that has been found in these difficult economic times to support educational development of the most disadvantaged pupils. That shows a real commitment by this Government to reduce the attainment gap and ensure that each and every school pupil reaches their potential. However, we must ensure that the pupil premium goes to those who are most in need, and I urge the Government not to overlook the pockets of deprivation that exist in Redditch and Worcester, the constituency of my hon. Friend. Will the Government clarify how the pupil premium will reach those pockets of deprivation?

Finally, I should like to say a few words about standards in schools. I should like to see standards raised in Redditch over the course of this Parliament. I firmly believe that the Government should focus on school standards—not just in a few schools but in all our schools. We need to ensure that teachers are free from the increasing bureaucracy and incessant form filling so that they can concentrate on teaching our children.

When I meet teachers and head teachers, one of the first things that they mention is the endless amounts of paperwork that they have to deal with. We need to move away, and stay away, from the bureaucratic procedures imposed on our school system and make sure that it is replaced by teachers spending more time with pupils. I received another e-mail yesterday, from another head teacher in my constituency, who wrote:

“Just to say I applaud the Government for abolishing this bureaucratic burden on schools. It is good to finally have a Government that listens”.

On that note, I will finish my contribution. We in Redditch are trying hard to improve our schools and get the very best education for our children. I applaud the Government’s proposals and hope that all hon. Members will make their schools and our nation’s children their top priority.