(9 years, 2 months ago)
Commons ChamberMy hon. Friend highlights just one of the anomalies in the funding system for FE colleges. I hope that I will be able to tease out one or two other anomalies in the time remaining.
I believe that we have to be honest about the scale of the problem facing our nation, so I want to talk specifically about apprenticeships in technical sectors. As colleagues will know, our country needs 82,000 additional engineers, scientists and technologists by 2017. To compete globally, almost half of those in technical roles will require upskilling to keep pace with technological advancements. Some 10,000 new technicians are required for the rail industry, of which 30% are required in London and the south-east alone. In aviation, 7,000 new engineers are needed between now and 2020, of which 30% need to have an NVQ level 4 and above. A growing number of engineering roles feature on the national shortage occupation list, and there is the stark statistic that two in five businesses requiring employees with STEM qualifications and skills are reporting difficulties with recruitment.
The time has come for the Government to roll out advanced technology colleges across the UK to match their, as yet undelivered, commitment for a UTC in every city. We have long lived in a country where the post-16 education system is geared towards results and targets, rather than businesses and young people’s needs and aspirations. In essence, this country faces a skills shortage in many leading industries, such as engineering and construction, because we have not focused our post-16 education system on equipping people with the skills that businesses need in order to thrive. Successive Governments have sometimes got this wrong, and I believe that one way to address the escalating problem is to increase the number of advanced technology colleges.
Last week, I had the privilege to visit Prospects College of Advanced Technology in Basildon. PROCAT is an advanced technology college that specialises in the engineering, rail, aviation, construction and building service sectors. It comprises three skills campuses, with more than 2,000 students and 850 apprentices. The previous Labour Government invested significantly in this facility, with a bursary of about £20 million. I visited to learn about how it recruits, trains and retains apprentices in specific sectors, because I am interested in how we can develop the ATC model across the country. In fact, in the 1950s a host of what are now known as universities, such as Brunel, Aston, Bradford, Cardiff and many more, were all ATCs before they became polytechnics and then universities. The beauty of an ATC is that it has a direct link to the business—it is a model, I think, of absolute success.
ATCs align themselves with businesses that invest in their apprentices, helping to provide a clear and professional training environment and a guaranteed job and career at the end of the training, which is exactly what I was trying to outline to the hon. Member for Bexhill and Battle (Huw Merriman). The curriculum at an ATC is also aligned to the needs of that business, which helps to ensure that all apprentices leave with the necessary skills to be employable.
Lord Heseltine made it clear in his 2013 report on growth that university technical colleges, with links to businesses, are the way forward. I would not normally quote Lord Heseltine; it is not easy for me to quote him, but, after all, he was responsible for bringing Thatcher down, so every cloud has a silver lining and all that! Indeed, I think we must go full circle and return to ATC status in order to restore parity of esteem and to address the urgent need to deal with our growing skills shortages.
In my remaining time, I would like to touch on another issue. Another anomaly in the education system is the entry level for UTC students, which currently stands at 14. At 14, many students will have decided what path they wish to take and whether they want to specialise in any particular occupational area. A UTC is therefore perfect for them, as it allows them to begin their vocational training in a new college at an early stage and focus on that specialty 40% of the time, with the other 60% focused on STEM subjects.
I implore the Minister to study the faculty of foundation apprenticeships, which is being developed by PROCAT and offers pre-apprenticeship training to any 16-year-old seeking to enter technical apprenticeships. There is a gap in the system, and that would be a good way for the Government to address it. They should look seriously at promoting ATCs, step up their game and improve the quality of apprenticeship training to provide real choice for young people deciding between an academic or vocational route to the workplace. We could then finally achieve that parity of esteem we so often hear about in this place.
There are four remaining speakers. With nine minutes each, we will have time for the Front-Bench speeches and a 4 o’clock vote.
(9 years, 6 months ago)
Commons ChamberAt the start of his contribution, the hon. Gentleman said that he would be brief. Is he now straying into the uncertain waters of misleading the House?
(13 years, 4 months ago)
Commons ChamberThank you, Mr Hoyle. It would be testing your patience not to stick to the amendment, as I shall endeavour to do for the rest of my remarks.
All Members will realise that the average family, the average couple and the average pensioner are facing a more and more difficult situation as the money coming in has to be stretched even further, and with prices going up in the shops. That is people’s experience. The impact of taxation on fuel prices and its role in driving up inflation and driving down living standards requires investigation and careful thought. This is not just my view or that of just some economist: when I looked into the possible causes of rising inflation in the UK, the first person I thought might have the answer was the Governor of the Bank of England, who, in his letter to the Chancellor about why the Bank had not met the inflation target, cited the VAT rise as one of the inflationary pressures facing the country.
As I said, I am not some inflation hawk who holds to a 1980s antediluvian economic philosophy that inflation is necessarily bad. Some countries have had relatively high inflation as well as growth. However, the important thing about taxation and fuel prices, and their role in inflation, is that it is possible to build in inflationary expectations in the long term through some of these measures. I wonder whether the Government have really thought about what they are doing in not combating some of the issues related to rising prices that we have seen.
There is also an obvious link with people’s worry about the lack of investment at this time. There is no doubt that investment means jobs today and productivity tomorrow, and therefore a more effective economy that enables people to have a better standard of living at less cost. That has to be the aim. At the moment, the Government are balancing the books using VAT and extremely flat taxes that do not pay regard to people’s income. They are asking people in my constituency on relatively modest incomes to pay the same higher prices at the fuel pumps as people in the Chancellor’s constituency down the road in Tatton, who by and large—not universally—are a bit wealthier. That is not fair.
We have to consider carefully whether the increased taxation on fuel resulting from the VAT rise is having a negative impact on the economy in a wide-ranging sense. It is not only about whether fuel prices are up—obviously that could be the result of several things—but, most especially, about what that is doing to inflationary expectations. We need to consider whether it is having a damaging impact on the broader economy, and whether it is a disincentive to growth and productivity improvements in the UK. We also need to consider what it is doing to the living standards of people such as those whom I represent in Wirral and Merseyside who have seen living standards fall severely in the past two years.
I am sure that my hon. Friend would agree with the old adage, “You can’t fool all the people all the time”, but that is exactly what the Chancellor tried to do with his 1p tax cut to fuel duty. However, is it not the case that since the Budget, petrol prices have gone up several times more than that 1p tax bribe, and that the VAT increase in fuel duty is causing damage to motorists and businesses—
Order. I am ruling that interventions must be short and letting the Committee know that we will be taking only short interventions.
(13 years, 6 months ago)
Commons ChamberYou just don’t get it, do you? I do not know what the settlement is in your area. [Interruption.] Well, let me tell you that the total settlement in Liverpool is—
Order. Members must address each other through the Chair.
I apologise, Mr Deputy Speaker. To address the hon. Lady’s point, Liverpool is the most deprived area in the country—I have said that before in the Chamber—and it is facing the biggest cuts not just in the policy area under discussion, but in all areas. I invite both the hon. Lady and the Secretary of State for Education to come and see my constituency. It is not only in the most deprived area in the country; it is one of the most deprived constituencies in the most deprived area in the country.