Budget Resolutions and Economic Situation

Karin Smyth Excerpts

Tuesday 22nd March 2016 Commons Chamber

[Karin Smyth (Bristol South) (Lab)]

I want to focus on apprenticeships and the levy, which is key to opportunities for young people in Bristol South. I support the 3 million target by 2020. It is an ambitious target but we should be ambitious for our young people.

In many ways, Bristol is a booming city, with the highest household income outside London and easily the highest productivity of any big conurbation outside the capital, but apprenticeships are important in Bristol South because, as UCAS tells us, it sends fewer of its young people into higher education than any other constituency. Other opportunities are a lifeline to Bristol South’s young people. Apprenticeships and training are the route to a better future for so many people living in our communities. Although Bristol South is not home to a huge number of large companies, very many small and medium-sized enterprises are based there, owned by and employing local residents. I may disagree with the hon. Member for Richmond (Yorks) (Rishi Sunak), but I am glad he mentioned SMEs. I am particularly interested in the role that they are going to play in the delivery plan for apprenticeships and how the levy is going to work for them.

Last week, three important interventions emerged and caused me concern. First, the co-chair of the Government’s delivery board confirmed that SMEs will not be in the levy system when it launches, and that only firms paying the levy will have access to the new funding system from April 2017. Secondly, at the FE Week annual apprenticeship conference, we heard from the former Business Secretary about concerns that the levy may in fact be a revenue-raising measure, rather than a genuine one. Thirdly, we saw comments from the Social Mobility and Child Poverty Commission, which was concerned that the number of young apprentices has flatlined since 2010 and that many of these apprenticeships do not offer people a foundation they can build on.

I would like the Government to guarantee that every penny of the £3 billion this levy is expected to raise will be invested back into improving training and apprenticeships; that SMEs will have their fair share; and that the special and unique opportunities and challenges that SMEs bring to the apprenticeship table will be fully taken into account. How will young people, business, colleges and other training providers in Bristol South be able to access these opportunities? What guarantee can the Government give that my constituency will receive its share?

The Government plan for apprenticeships seems very much at the drawing board stage, so I am inviting firms in my constituency to help. I have issued an open call to SMEs in Bristol South to set out their ambitions for the shape of apprenticeship schemes over the next decade. I am sure the Government agree that the reaction and responses of employers to the levy will make or break the target. Will the Government therefore please accelerate the publication of the action plan, showing how the target will be met, how the levy will work and other fine details of the grand plan, so that I and others can work in Bristol South, alongside employers, colleges and other training providers, to promote and encourage full engagement?

An additional key consideration is the number of Bristol South residents who are not yet ready to take up an apprenticeship, so the detail of the Government’s plans for pre-apprenticeship training is of interest. It is essential we ensure that Bristol residents are not blocked from accessing these valuable opportunities because of a lack of existing skills.

I also have concerns about the realism of the 3 million target by 2020. Do the Government agree that there is a genuine danger that an apparently arbitrary target will risk a dangerous trade-off between quantity and quality? I heard of a call to my constituency office this week about a young person in Bristol South who was on an apprenticeship and was being asked to work from 7 am to 7 pm, with very poor support. That highlights the importance, in driving towards the 3 million target, of not ignoring the quality of that experience and support offered to young people. I also fear that post-19 loans will deter people from accessing training for the skills that employers need, which would have a negative effect on my constituency, so I look forward to reassurances on that from the Minister.

Earlier today, the Chancellor said to a Conservative Member—I hope he extends this to others—that where constituency MPs raise the issue of vital services for their constituency, this Government are listening.

In concluding, let me say that for me this is not a party political issue; I make my points in the spirit of co-operation and what is best for the people of Bristol South, who have sent me here to represent their interests. This is key to their ambition and aspiration.