Oral Answers to Questions

Debate between Luke Hall and Marie Rimmer

Monday 29th April 2024 Commons Chamber

[Ms Marie Rimmer (St Helens South and Whiston) (Lab)]

2. What assessment she has made of trends in the number of apprenticeship achievements.

[The Minister for Skills, Apprenticeships and Higher Education (Luke Hall)]

The proportion of apprentices who achieve their apprenticeship standard rose to 54.3% in 2022-23, which is up 2.9 percentage points on the year before. We are taking action to ensure that every apprentice has a high-quality experience. We are reviewing and improving standards where there are poor achievement rates; we are investing £7.5 million in the provider workforce development programme; and Ofsted will be inspecting all providers by 2025.

[Ms Rimmer]

Giving all young people a good education is key to levelling up our country, yet the number of apprenticeship starts has fallen by a third over the last decade and there are 3% fewer completions than three years ago. We have improved on last year, but we are not there yet. Why have the Government let the number of offered and available apprenticeships slide, and why does the Minister think that young people are not qualifying at the rate they were three years ago?

[Luke Hall]

We want all young people to have access to good, high-quality apprenticeships because they offer a valuable experience and an opportunity to upskill at the start of their career. We have seen a 4% increase in apprenticeship starts by young people under the age of 19 so far this year, and 57% of all starts have been by those aged under 25. Last year, we saw a 21% increase in apprenticeship achievements in the hon. Lady’s constituency. That is welcome news but, of course, there is always more to do. I am very happy to work with her on the issue.

Rating (Coronavirus) and Directors Disqualification (Dissolved Companies) Bill (Second sitting)

Debate between Luke Hall and Marie Rimmer

Committee stage
Tuesday 6th July 2021 Public Bill Committees

[Luke Hall]

Q A lot of the early feedback we received suggested the potential scale of the appeals was causing concern in local government. We started to hear talk from local government about potential savings to frontline services that would need to be made. Could you tell us your experience of the way local government started to approach that potential task, and whether that started to impact on budgeting and forecasts for councils in setting their budgets?

David Magor: Since the introduction of the rates retention scheme, local authorities have had to forecast the impact of changes in the valuation list from year to year when preparing their budgets. You started with 50% retention, and moved to pilot schemes of 75% and 100%. When you have a rates retention scheme that works in that way, if you make a mistake in forecasting the reduction in value, you will significantly affect the finances of the local authority and the budgeting process.

Every chief financial officer has to make a forecast of the impact of a change. They would have to make a provision against that forecast and, of course, provisions prevent you from spending money, because you are providing for an event that is likely to happen. Certainly, as far as forecasting for the 50% rates retention scheme was concerned, every time you looked at your rateable value and the changes in that over the forthcoming year, you were conscious that any forecast you made, 50% of that reduction in value would fall on your budget.

That was the way the retention scheme worked, and it created a great deal of concern because chief financial officers were making very significant provisions. As I said, making provisions curtails the local authority’s ability to spend. Elected members quite rightly get very concerned about that. Then the MCC checks and challenges came in, with the checks first. As Adrian said, the enormous number of checks has now reached half a million, and the challenges emanating from those are well in excess of 100,000. You are talking about a massive impact on the valuation resources of the list. Local authorities have to make provision for that.

Through this Bill you would remove that risk and, as the Chair said, transfer it to central Government, because you would fund it through a relief scheme. The real problem is whether the relief will be sufficient to meet the needs of the ratepayers who are expecting a reduction in rateable value.

Adrian Blaylock: That is right. The risk and the responsibility of a local authority to set aside sufficient funds to cover any potential losses to the rating list could be significant. If I can just give you some indication of where we were: at the end of 2019-20, local government had just short of £3 billion sat in provisions for alterations of lists and appeals. This is all pre-covid. This is nothing to do with the pandemic, just essential changes to the rating list. Every year, they have to forecast what they think they will lose in the forthcoming year and there is roughly £1 billion a year being added to that pot, regardless of covid. So the potential loss on top of those normal everyday changes to the rating list—well, I would not like to think what would happen to local government finances if it went ahead. You would need a significant level of provision to be able to carry that. We have already seen local authorities applying to MHCLG for capitalisation directions because they are struggling to pay the day-to-day costs of running their services. How many more authorities would need to go down that route if that is where we get to? That is what concerns me.

[Ms Marie Rimmer (St Helens South and Whiston) (Lab)]

Q There are three very specific exemptions to the restrictions on appeals set out in clause 1(5), inasmuch as the valuation decision must take into account the effects of covid-19 on the quantity of minerals extracted and the quantity of waste disposal from the property, along with the physical state of the property being affected. Do you think those exemptions are reasonable and are there any other circumstances that you feel should be included?

David Magor: I must admit that the Bill is very well framed. We have looked closely at the Bill, clause by clause, and it meets its specific purpose. The approach to dealing with the material change in circumstances and to withdrawing or removing the covid ones is very sound. I find the provisions of clause 1 fit for purpose and they meet the needs of Government. That is a relief, in the sense that it seems to be fair. Of course, it is important that in making decisions in relation to the clauses that you have mentioned the Valuation Office Agency is transparent and gives the ratepayer and ratepayer’s agent every opportunity to make their case for other matters that are outside the covid situation.

Adrian Blaylock: I have nothing to add to that. I agree with David.