Oral Answers to Questions

Kerry McCarthy Excerpts

Thursday 15th January 2015 Commons Chamber

[Sajid Javid]

I referred earlier to a report published this week, which shows strong growth in the creative industries throughout the UK in every region, including Scotland. I encourage the hon. Gentleman to take a look at it. If he has any fresh ideas that he thinks we should look at, I would be happy to speak to him.

[Kerry McCarthy (Bristol East) (Lab)]

3. What discussions he has had with the Chancellor of the Exchequer on the effect on musicians and other creative professionals of EU proposals to change the way VAT is charged on digital services.

[The Minister for Culture and the Digital Economy (Mr Edward Vaizey)]

The changes relate to the announcement in the 2013 Budget and came into effect on 1 January 2015. Her Majesty’s Revenue and Customs established an external working group to consider their effect on small and medium-sized businesses. The Treasury and HMRC are actively engaging with it.

[Kerry McCarthy]

I thank the Minister for that response and for agreeing to reinstate the question after his officials tried to transfer it to the Treasury. That was very kind of him. As he will know, musicians are very concerned that they will end up having to fill out quarterly VAT returns for very small sources of income. If they sell their music through iTunes or Bandcamp, they will perhaps do the administration for them, but it is a real issue if musicians have to handle it themselves. I urge the Minister to take part in those discussions with the Treasury and ensure that the voices of musicians and other people in the creative sector are heard.

[Mr Vaizey]

I would never dodge a question from the hon. Lady, particularly as she represents the constituency of Bristol East, where I stood famously in the 1997 election and turned a 5,000 Labour majority into a 17,000 Labour majority. The changes will protect and increase revenue. The hon. Lady is a great champion for the music industry. I take on board her point and I will certainly engage with HMRC.

--- Later in debate ---

[Sajid Javid]

My hon. Friend has been working very hard on this issue, and I commend him for the work he has done on behalf of his constituents and for bringing this matter to my attention again and again. My Department is working closely with the Department for Communities and Local Government, Cumbria county council and BT to ensure that the problem is resolved. I can also tell him that, following initial discussions, I am confident that the project can be fully delivered to give a great result for residents and businesses in Cumbria.

[Kerry McCarthy (Bristol East) (Lab)]

Channel 4 has just launched its 360° charter, which is making a real commitment to improving diversity, to the extent that executives will lose their bonuses if they do not meet the targets. What is the Secretary of State doing to ensure that other companies follow suit?

[Sajid Javid]

The hon. Lady rightly raises a very important point. My hon. Friend the Minister for Culture and the Digital Economy was at that launch. I have spoken a number of times about seeing more diversity in the media. For example, I talked about it just last month on Radio 4, mentioning both the work that Channel 4 is doing, which is a huge improvement on the past, and that done by the BBC, Sky and others. More can always be done, and if the hon. Lady also has some ideas, I would be happy to talk to her.

--- Later in debate ---

[Mr Harper]

My hon. Friend raised a similar question at the previous Question Time and I put in the Library information on the amount of money the Government have made available to each local authority in the country compared with what they are spending. We do not have a list broken down by local authority of every single person affected by the removal of the spare room subsidy and their level of disability, so I cannot give my hon. Friend the exact information he requires, but I think I have done the best that I can.

[Kerry McCarthy (Bristol East) (Lab)]

7. What steps her Department is taking to reduce inequality arising from socio-economic background.

[The Parliamentary Under-Secretary of State for Women and Equalities (Jo Swinson)]

The Government are committed to improving social mobility. That is why we have extended free early education to disadvantaged two-year-olds, introduced a £2.5 billion a year investment in the pupil premium, delivered 2 million apprenticeship starts within this Parliament and have more than 180 major employers signed up to the social mobility business compact to inspire young people and improve access to employment opportunities.

[Kerry McCarthy]

Bristol’s fairness commission reported last year and described Bristol as a “tale of two cities,” with some areas facing “persistent deprivation.” When the Government entered power, they refused to implement clause 1 of the Equality Act 2010, the socio-economic duty, which would have placed a duty on all public bodies to have awareness of the effect of economic inequality on their policies. Will the Government reconsider that, because it is an issue that they have completely overlooked?