(2 weeks, 6 days ago)
Commons Chamber
Leigh Ingham
I thank my hon. Friend. As fellow Staffordshire MPs, we experience broadly similar issues, and that echoes exactly what many people in my constituency have told me, particularly about working from home.
For farming businesses in particular, of which I have many in my constituency, the impact is even more clear. The National Farmers Union’s most recent survey found that only 22% of respondents report reliable mobile signal across their entire farm, and nearly one in 10 have no 4G or 5G access at all. At the same time, 98% said that mobile signal is important to their business. Here in this House, we regularly ask farmers to access schemes online, communicate digitally with our agencies and adopt new technology, yet many operate with poor or patchy connectivity. The gap between need and access is stark.
In the village of Church Eaton, residents endured years of very poor mobile coverage, at times unable to make 999 calls or receive NHS alerts, despite a mast having already been built under the shared rural network. The infrastructure was there, but it had not been switched on, which left the village in limbo and left residents—let’s be honest—really annoyed. Working closely with the determined residents—I pay tribute to them and the parish council that has campaigned on this for many years—I raised the issue in Parliament and VodafoneThree’s leadership got in contact directly to help get that site back into the company’s investment plan. I am pleased that following that joint effort and constructive engagement, the mast has been running since September, bringing reliable 4G coverage to the village for the first time, but it should not take an MP standing here for that to happen. The infrastructure was already there; the village was not waiting for it. The mast has meant stronger coverage not only for VodafoneThree customers in the village, but for customers of a wide variety of signal providers.
I want to place on the record my thanks again to the parish councils across my constituency that have worked on this issue for years. They regularly gather evidence, engage with providers and keep the issue alive. Their persistence is invaluable in making progress in this space, because as more and more public services move online, access to stable mobile and broadband connectivity become even more important.
Rural communities should not be left waiting while national averages improve on paper. We need faster delivery of the shared rural network to eliminate the total notspots, alongside support for a mix of technologies to reach hard-to-access areas. Most importantly, rural communities must have confidence that they are not an afterthought in any roll-out plans. People living in villages, on farms and down country lanes deserve the same reliable connectivity as anyone else, and closing that gap is essential for fairness and productivity, and also to increasing opportunity in rural Britain. We have some wonderful businesses and local farms that want to develop, but a lack of connectivity can hold them back. I would love to hear what steps the Minister is taking to advance mobile connectivity and involve rural communities moving forward.
On a point of order, Madam Deputy Speaker. For the last 18 months, the Government have been sitting on the guidance relating to gender-questioning children in schools—a very controversial subject—which the Government keep saying is coming. It has become apparent in the last half an hour that they plan to publish this guidance at 4 pm today, just moments before the House goes into recess for a week. It is hard to see this as anything other than a deliberate attempt to avoid the scrutiny of this House on an important issue. What can we do to put this right?
(11 months, 2 weeks ago)
Public Bill CommitteesEven before we set up the levy, I always heard employers expressing concerns about the idea of a levy of any kind. In many instances, they would prefer just to keep their money and not spend it on skills at all. The fact that they were not spending on skills is the reason why we brought in a levy—it was quite a contentious thing, and quite a centrist thing in lots of ways.
As the Institute for Fiscal Studies pointed out in its recent paper on the Government’s proposals to change the levy, the danger, if we start to make these things too open-ended, is that we completely collapse the concept. It notes what happened with things before, such as Train to Gain, where what we end up with is pure dead-weight—we get zero additionality.
To reduce the idea to absurdity, if we were to say that employers can spend the apprenticeship levy on whatever they like, there is no point in having a levy, is there? That is because we would have just gone around in a circle. There is no point taking money off people and saying, “You can do whatever you want.” The whole point of containing that expenditure to apprenticeships was, as well as wanting to prioritise apprenticeships, to avoid the very real problems that the Institute for Fiscal Studies pointed out with previous schemes such as Train to Gain, where we ended up with huge amounts of dead-weight. It did not work, and the amount of money spent by employers on such things went down.
I am absolutely ready to hear criticisms of, and improvements to, the idea of the levy. In a moment, I will talk about some of the challenges that will be thrown up by the Government’s proposals to move large amounts of money out of apprenticeships through the reforms to the levy.
Leigh Ingham (Stafford) (Lab)
On the shadow Minister’s previous point, I spoke to businesses in my constituency of Stafford, Eccleshall and the villages, and one pointed out to me that 90 pieces of paperwork were required, with multiple contract stages, just to get, for example, a plumber apprentice to take part in any scheme. The college in my constituency, which is outstanding and has a 72% completion rate compared with the national average of 58%, is doing strong work, but the businesses, in particular the small and medium-sized enterprises, are saying that the apprenticeship levy does not work for them and has excluded them from skills development. I am interested to hear what the shadow Minister has to say about that.
As I said, I am absolutely ready to hear detailed thoughts and to have the detailed discussion about how one improves all these different things, and I am pleased that the hon. Lady’s local college seems to be highly successful in delivering these things. Every year, on average, twice as many people started apprenticeships under the last Government as started them under the previous Labour Government, so we did get a lot more of them, as well as higher quality. I do not know what the 90 bits of paper are, but I am absolutely ready to hear and to talk about ways we could improve those matters.
On the point about SMEs that the hon. Lady raised, that is exactly why last March we moved to 100% funding for SMEs—to make things easier for them. I agree with the hon. Lady: there is a lot to do to make it easier for SMEs to participate in the levy-led system. I am just not convinced that any of the concerns she raises will be addressed by shutting down IfATE or setting up Skills England. She might hope that they will be—I hope that they will be—but I do not see anything in this legislation that will fix any of the problems that she complains about. Obviously, we hope that collectively we will solve the problems in the system.
There are quite a lot of concerns—including concerns among those on the Labour Benches, which I will come on to—about the transfer of IfATE’s powers to the Secretary of State compromising the independence with which apprenticeships and wider technical qualifications, such as T-levels, are accredited, and diluting the voice of employers. As numerous people have pointed out, we would not and do not accept that on the academic side, where we have both independent exam boards and Ofqual creating and monitoring specifications and exams. This is yet another example of our treating the academic side—the route that most of us went down—differently from the technical side. As the Labour peer Lord Knight has pointed out:
“The problem that some of us have with the Bill is that it feels like the second half is missing. The second half is the establishment of Skills England as a statutory body…Being subsumed within a division of the Department for Education…is problematic. The Minister needs to reflect on it.”—[Official Report, House of Lords, 21 November 2024; Vol. 841, c. GC87.]
As another Labour peer, Baroness Blower, pointed out,
“the appropriate move from where we are would be to a statutory body”.—[Official Report, House of Lords, 21 November 2024; Vol. 841, c. GC90.]
Stephen Evans, chief executive of the Learning and Work Institute, said that giving Skills England legislative backing
“would…cement the body’s independence.”
In contrast, the Bill originally introduced by the Government did not even include the words “Skills England”. The very act of a further reorganisation, even if one thinks it is a good idea, is likely to further compound the effects of the Budget and the decision to move apprenticeships money to other things. I will just rehearse that for a moment. Obviously, the Budget saw a £40 billion overall tax increase and the largest part of that is a £25 billion increase in national insurance, which is squarely targeted on part-time and lower-income workers. It hits exactly the tier of the workforce that is typically the apprenticeship kind of tier. Of course, apprenticeships do not require payment of national insurance, but when we see lots of employers, as we do now, shedding jobs in that tier, that is inevitably bad for the number of apprenticeships.
That is compounded by what the Government want to do in terms of taking money out of apprenticeships. There has been some confusion about that, because safely before the election, Labour in opposition had the idea that it was going to let employers take 50% of the money from the levy and spend it on things that were not apprenticeships. Then, as the election drew nearer, that idea seemed to disappear and did not feature any more. Lots of people assumed that it was gone. Then I assumed it was definitely gone, because I asked the current Minister—whom we have here today—in Westminster Hall whether the 50% target still stood, and the Minister said that the policy was under review. Then a couple of weeks later, in oral questions, when we asked the Secretary of State whether the 50% target still stood, she said that it did, even though lots of people in industry think that that is not the plan.
This whole question about how much of the money will be taken out of apprenticeships and put elsewhere is shrouded in confusion. I would love it—I would be delighted—if the Minister could talk about that point today and tell us whether it is still 50%. It is a binary thing: it either is 50% or is not. I would love the Minister to tell us the answer one way or another. At the moment, the levy raises about £2 billion a year. If the Government take 50% of that money out, they might think that is a good thing. They might say, “Yes, we want employers to be able to spend a billion quid on other stuff.” But if they take all that money out of apprenticeships, one thing they will definitely have is fewer apprenticeships. They could say it is fine—
Sure. A shadow form exists at the moment, but that does not change the longer-term point that if we do not give it its own legislative basis and make it independent of the Department, all the criticisms and concerns about the dilution of the employer voice and so on still stand. I am not having a go at those who are setting up Skills England.
Leigh Ingham
On the point about independence, the chair has been announced as Phil Smith, the former CEO of Cisco. Surely that in itself is a sign of significant independence.
A fantastic person—all good. It is like having NEDs—non-executive directors—in a Department; it is good to have external people. As I noted, however, the CEO of the organisation is literally not a civil servant; it is a job-share civil servant. They are people who currently work in the Department doing post-16 skills, so I am not sure about idea that this is an independent body. Can the hon. Lady tell me where Skills England is based? Physically, where is it located? Perhaps the Minister will tell us. Is it in Sanctuary Buildings, by any chance? Sanctuary Buildings is none other than the headquarters of the DFE. Is this, in fact a desk in an open plan office that is part of the DFE?
The Government can bring in good people. It is good to bring in good people. The DFE has some good NEDs, by the way, but that is not the same as having an independent institution. That is why Lord Blunkett and other Labour peers are warning that the Government are making a mistake. Those are their words, not ours. Lord Blunkett has a lot more experience of those things than me.
All I would say to the Minister and to hon. Members on the Government Benches is, instead of overturning what peers have put into the Bill, this might be one of those times when it is more sensible to listen to people on their own side, people with some serious grey hairs and a lot of experience, people in their own party, who are advising them that they are making a mistake here. Instead of overturning what they have done, the Government should allow it to stand. The criticisms being made by people in the industry and people with experience in education and skills are serious. I hope that the Government will listen to them, rather than simply overturning what they have done and ignoring them.