(11 years, 11 months ago)
Commons ChamberThe one thing that we have learned is that regulation of banks and managing of demand in our economy cannot be separated; they are part of a continuum and that is one of the things that went wrong. Of course the Bank of England takes on heavy responsibilities, and the new Governor will have to manage the Bank in a very effective way to manage those new responsibilities. Mervyn King has already said that there needs to be a chief operating officer in the Bank, and there will be three deputy governors: for macro-prudential, micro-prudential and monetary policy. They too need to shoulder the burden, as indeed they currently do.
One thing that attracted the panel that interviewed Mr Carney, and me when I interviewed him, was his management experience in Canada. He is well regarded for having run a good bank in Canada as a manager, as well as for the international credibility he has earned for his economic and financial policies.
I welcome my right hon. Friend’s announcement and wish Mr Carney the very best. Will my right hon. Friend reassure me that women were encouraged to apply for this role? If he is looking for someone superhuman, often it is women who fit that category.
There were some excellent female candidates but—I will be absolutely candid with my hon. Friend—it was rather disappointing that there were not more female candidates of the highest quality. Both I and my predecessor faced that issue with appointments to the Monetary Policy Committee, and I would like to work constructively with people who have ideas on how we can encourage women in the economics profession to aim for a career in public service, the MPC, or central banking. We must do more to encourage that because, as I said, both I and my predecessor found that we did not have as wide a range of female candidates for the MPC as we would have liked.
(12 years, 3 months ago)
Commons ChamberI start by congratulating my hon. Friend the Member for Hexham (Guy Opperman) and the hon. Member for York Central (Hugh Bayley) on securing the debate. I was delighted to attend the Backbench Business Committee meeting at which the proposal was made. I know that the hon. Member for York Central was unable to be there, but I am pleased that we now have the opportunity to have this discussion in the Chamber. I want to make a short contribution in support of the motion.
The Kent, Surrey and Sussex Air Ambulance has a special place in the hearts of my constituents. It provides an invaluable service across the three counties, which have seven motorways running through them on which five serious accidents happen every day. However, road accidents account for only 41% of the emergencies that the local air ambulance attends. Medical emergencies such as cardiac arrests and strokes account for a further 25%, and both require a swift response and excellent, quick medical care if they are to be dealt with quickly and properly.
A quick news search on the Kent, Surrey and Sussex Air Ambulance shows how vital it is across the counties. Yesterday, it landed on the M20 motorway and took a lady who had fallen from a bridge not to the hospital at the next junction but to a specialist unit in London. A few hours later, it transferred from Ramsgate to King’s college hospital, again in London, a workman who had fallen 30 feet. That journey would have been very difficult to make by road. Last Friday, the helicopter took a 78-year-old man with serious facial injuries following a DIY accident from Lordswood in my constituency to hospital in London. As the local newspaper reported, the helicopter landed nearby at 10.25 am. Doctors gave the man emergency treatment at the scene before he was flown to the major trauma centre at the hospital in Denmark Hill.
This is a crucial issue, because the VAT money could be put back into the air ambulance, especially the London air ambulance, which serves more than 10 million people. We need a second air ambulance to serve those numbers.
I completely agree. The Kent, Surrey and Sussex Air Ambulance has two helicopters to serve the three counties. I am sure that all money saved from VAT would be used effectively.
One great thing about the Kent, Surrey and Sussex Air Ambulance is that it transports a specialist doctor and a critical care paramedic directly to the scene of serious medical emergencies. They provide enhanced care at the scene of the accident, often involving medical procedures usually provided only in the emergency department of a hospital. Patients are flown to the most appropriate hospital for their needs, and many are transferred to county or regional hospitals. However, as the three shouts I described show, patients quite often require specialist treatment at a major trauma centre in London. Quite simply, the intervention of the air ambulance team saves lives.
The Kent, Surrey and Sussex Air Ambulance costs £5 million per year to fund and operates 365 days a year, responding to 1,500 to 1,800 medical emergencies per annum. It is funded almost entirely by donations. Its mission, objective and outcomes are as important to our country as those of the Royal National Lifeboat Institution, another lifesaving service very dear to my heart. However, as we have heard, and as the motion states, the key difference between the two is that the air ambulance pays VAT at the rate of 20% at its base in Marden. It buys fuel in bulk and uses between 180,000 and 200,000 litres a year. Given that each mission costs around £2,500, zero-rating fuel for the helicopters would save the air ambulance a significant amount of money that it could reinvest in its life-saving functions. That is not a vast amount of money for the Treasury, but it would be directly available to air ambulances.
It has already been made clear that, under EU law, it is not possible to implement a new zero-rating into UK legislation relating solely to the air ambulance. Although I am not a VAT expert, let me offer the Minister a possible solution. Schedule 8 to the Value Added Tax Act 1994 refers to charities and outlines provisions that allow for the supply, at the zero rate of VAT,
“of any relevant goods to an eligible body which pays for them with funds provided by a charity”.
The Act also makes it clear that “relevant goods” includes “ambulances” and
“parts or accessories for use in or with”
ambulances. Her Majesty’s Revenue and Customs already accepts that “ambulances” includes specially equipped air ambulances or watercraft, and that “eligible bodies” includes charitable institutions providing
“rescue or first aid services”.
Under those provisions, therefore, and with guidance from the Treasury and HMRC, the air ambulance could purchase fuel in its own name for use at a zero rate of VAT. I am sure that, with proper discussion, air ambulance charities could certify the use of the fuel, making them liable for VAT payments if they misappropriate it for other purposes. Furthermore, I am sure the charities would be willing to appease any concerns that HMRC might have on claims for retrospective recovery of VAT incurred over the past four years, which would obviously lead to a greater cost to the Treasury.
The Treasury might be concerned about the reduction of revenue, but it should recognise how much the air ambulance saves the NHS. First, like others, the Kent air ambulance is not funded by the ambulance service or the NHS. Secondly, the speed at which it can transfer injured persons to hospital often means that they are treated and discharged more quickly, thereby saving the NHS money in the long term.
Throughout the debate thus far, Members have spoken highly of the air ambulances serving their constituents. There can be no doubt about the level of genuine support they enjoy, but as the motion makes clear, and as we have heard, there is potential for the Treasury to give additional financial support to help air ambulances up and down the country to carry on providing a vital service. It is for this reason that I urge the Treasury to review the current VAT arrangements and use this opportunity to recognise further the vital contribution that the air ambulance service makes to people’s lives.
I applaud the hon. Lady’s enthusiasm for the London air ambulance service, which I share. The service is also supporting the Olympics and the Paralympics, on top of its normal work load, serving and supporting so many individuals—more than 10 million within the M25—as compared with many other air ambulances, which support far fewer people.
I could not agree more with the hon. Lady. She has been working with me to highlight the work of the London air ambulance service. I will talk about the demands in the run-up to, and during, the Olympics in a moment.
The London air ambulance service has a doctor-led team that provides advanced medical procedures and leadership in situations in which a patient might otherwise die before reaching hospital. As London’s only helicopter medical emergency service, the team works incredibly hard to provide 24/7 emergency care services to the 10 million people who live and work in the capital.
Despite the incredible work of the London service, its funding is limited. Many people do not realise that it is a charity, as are many of the other air ambulance services around the country. At a time when it should be expanding its operational capacity, a lack of funding means that it is unable to do so. That will have an impact across London, and, as the hon. Member for Brentford and Isleworth (Mary Macleod) has mentioned, that is deeply worrying in a year in which millions of visitors will come to the city for the Olympics.
Compared with other cities in England and Wales and around the world, London’s air ambulance service lacks resources. It has just one helicopter and one team to serve 10 million people, compared with an average of one helicopter per 1.5 million people across the rest of the UK. Internationally, Paris has 12 teams and at least three helicopters, and Sydney has six helicopters.
London’s air ambulance service is currently funded through private donations and an NHS contribution, but much more work must be done to raise funds if it is to provide the level of service required to meet London’s growing needs. In these tough economic times, it is even more challenging for the service to achieve its funding objectives. As a charity, it relies heavily on donations from the corporate sector, and in 2011 donations and sponsorship made up 45% of the service’s overall income. The donations from organisations, charities and companies are welcome, and donors include organisations such as Virgin, Coutts and the London stock exchange. At a time of economic uncertainty, however, that funding is not stable, and it does not meet the funding needs of the service.
Contributions from the private and corporate sectors play a large part, but it is vital that the Government should meet their obligations to support the charity. The London service has received a long-standing donation of £1.2 million from the NHS, which represented 40% of its overall income in 2011, but I believe that the Government must do more. The impact of the Government’s VAT increase to 20% is being felt by services such as London Air Ambulance, which receives no support to cover the cost of VAT on aviation fuel payments. We are calling on the Government temporarily to reduce the rate of VAT from 20% to 17.5%, which would lessen the VAT bill for charities, including air ambulance services.
The London air ambulance service needs an estimated £3.9 million if it is to enhance and expand the service that it provides in the coming years. The necessity for the service to do that will only increase, and it is important that we take action now to ensure that the service can cope with future demand. The extra funding would enable the service to acquire and maintain a new helicopter in order to achieve 100% “up time”, so that if one helicopter required maintenance, another would still be operational. It would also allow the service to maintain medical and rescue equipment, fund medical innovation and invest in staff training, research and the charity’s infrastructure. That type of expansion would greatly enhance the service, benefiting Londoners and ensuring a sustainable model for the future.
The London Air Ambulance is a service that many of us take for granted. It is a service that many of us do not think of as a charity, and one that we would expect to assist us in an emergency. This is a call to the Government to reduce VAT to 17.5% and give charities such as London’s air ambulance service the support that they need. It is also a call to the private sector and the business community, in London and elsewhere, to invest in the air ambulance services and support their incredible work of saving people’s lives.
(12 years, 7 months ago)
Commons ChamberI am very sad indeed to hear that. Although the Government have squeezed councils, Labour councils up and down the country are determined to do what they can to protect the arts in the community against a Government who are cutting while telling them that philanthropy can step in and take the place of funding, which it will not.
Will the right hon. and learned Lady give way?
I am going to get on with my speech now, because I know that many other Members wish to speak.
Key to a regional strategy is a truly national broadband strategy. There is a growing digital divide between the haves and have-nots—between urban areas with superfast broadband and rural areas with none. That is from the party that said it cared about rural areas. In Labour’s digital Britain strategy, we guaranteed 2 megabit broadband speeds to the whole country by 2012. The Tory Government scrapped that, and now it will not happen until at least 2015. The Government boast of the £100 million for its super-connected cities, re-announced from the autumn statement, and the £50 million for a second wave of smaller towns and cities, but that will not happen until 2015, if then. The Government can talk about ultrafast and superfast and hyperfast and megafast all they like, as the Ministerdid, but what is happening is the creation of a digital underclass—those in rural areas, the unemployed, and older people, who are already so squeezed by this Budget and by this Government.
For many, broadband access will be made all the more difficult by cuts to libraries. According to the Chartered Institute of Library and Information Professionals, almost 600 libraries are threatened by this Government. Where does that leave the Government’s “race online” campaign, which is supposed to be about libraries playing a key role in getting people online? The Government should tread carefully here: it is a well-known fact that libraries are very popular with many older people—unlike the Chancellor of the Exchequer.
This was a Budget that failed on jobs, failed on growth and failed on fairness, especially for older people. How can it be fair to give a £40,000 tax cut to millionaires and pay for it by taking £3 billion from pensioners? There is no justification. There can be no excuse. The Government’s claim that this is not a cut but a “simplification” is an absolute joke. They have invented a wholly new meaning for the word, but perhaps we should all go along with it: when I went to the hairdresser on Saturday, I asked for a simplification and blow dry, and yesterday I failed to persuade my hon. Friend the Member for Birmingham, Erdington (Jack Dromey) to simplify the lawn. But when it comes to simplification, the Culture Secretary had better watch out—I have heard that there are many on his side who would love to simplify his Department entirely.
Despite the fanfare ahead of this Budget, it has turned into a disaster. They wanted the centrepiece of the Budget to be “Downton Abbey”, but it turns out to be more like “Titanic”: the rich get the lifeboat, the rest sink or swim. This was a Budget that rearranged the deckchairs but did nothing for jobs and growth; a Budget that was based on economic failure and grossly unfair. Goodbye to detoxification: this Budget tells us everything we need to know. The clocks may have gone forward yesterday, but this Government have turned the clock back: wrong choices, wrong priorities, wrong values—same old Tories. The only people to benefit from this Budget were those rich enough to buy access to the Prime Minister.
It is a pleasure to follow the hon. Member for Blyth Valley (Mr Campbell), who is passionate about his enterprise zone, unlike the right hon. and learned Member for Camberwell and Peckham (Ms Harman), who went on a tirade of negativity about growth and business in this country. In the House hon. Members should be talking up British business to encourage people to invest in this country because it is a great country to invest in.
Even in these difficult economic times there are some great news stories in the national economy. London has retained its status in the global financial centres index as the best place to do business, ahead of New York, Hong Kong, Singapore and Tokyo. Business confidence has jumped to a nine-month high, according to a confidence index by BDO accountants group. This confidence index leapt 3.9 points to a score of 98 in February. Over half of members polled by the Federation of Small Businesses expect to grow in the coming 12 months.
West London is the place where I want people to invest. In my local area, Brentford and Isleworth, there are great local success stories of growth. Aker Solutions, which provides engineering and construction services to the energy, mining and power generation industries, has come back to the UK to Chiswick, and the reason is the highly skilled work force. International SOS has started up in Chiswick, helping organisations manage health and security risks. Otis, QVC and Swarovski are all moving to Chiswick. Starbucks headquarters in Chiswick has announced a major apprenticeship scheme to help young people get into work and develop skills for the future.
BSkyB, based in Osterley, has major expansion plans, with an increase in the number of jobs based there and an extensive programme of increased work in schools, developing skills and aspiration for the future. Fullers Brewery, London’s last remaining traditional family brewer, announced revenue figures up by 6% in its half-year results in November 2011 and like-for-like sales growth of 3.9%.
My hon. Friend the Member for South Northamptonshire (Andrea Leadsom) spoke about banking, and I agree with what she said, but Handelsbanken has already moved into my constituency and Metro Bank is about to open in my constituency. In the jobs fair that we are having on Friday in Isleworth there are hundreds of jobs available to people who are out there looking for work.
I applaud the Government for the fact that the Budget was one for business growth and exports. Corporation tax is dramatically down and is now lower than in the US, Japan, France or Germany. That is what will make us more competitive than ever before. We are backing potential winners—for example, through tax relief to the video games industry, which will help Sega in my constituency and other similar organisations. Helping companies export is key to growth in the future. Lord Green has been doing a lot of work at a local level as well to encourage businesses to expand abroad. If we exported more, more than £36 billion could be added to our UK economy.
This is also a Budget for small and medium-sized enterprises, encouraging investment and creating an enterprise-led recovery. The national loan guarantee scheme, the enterprise management initiative scheme, the enterprise investment scheme and the seed enterprise investment scheme will help small businesses, and we have helped to simplify tax for so many small businesses. I encourage the Government to do more for SMEs by simplifying employment legislation, as we are doing, helping small companies bid for Government contracts and keeping that process as simple as possible.
This is a Budget to encourage young entrepreneurs. Enterprise loans, which we heard about in the Budget, will help young people believe that they can aspire and set up a new business. It does not matter what age they are; they can do it and achieve great things in business. Linked to the work that we have been doing to try to get more women on boards in the City, we need to encourage more female entrepreneurs. If women were setting up businesses at the same rate as men, we would have 150,000 more businesses.
In conclusion, Britain is a great place to do business. The signs of change are being seen locally and nationally. Each Member can do their bit for growth by helping to build aspiration in schools and/or in businesses. This Budget will deliver real results for this country and allow British business to grow and succeed in the future.
Before I call Mr Jim Cunningham, let me say that I do not want to drop the time limit any more, but if each Member could be generous to others and shave a little bit off their speeches, we will try to make sure that we get everybody in.
(12 years, 9 months ago)
Commons ChamberI welcome the debate and want to discuss a number of issues that arise from the motion, but, having explored it, I think it contains a strong hint of political expediency and opportunism. To a degree, the Opposition seem to be ignoring part of the history of the UK Government between 1997 and 2010. That said, this is an extremely important and topical issue and the motion therefore deserves proper consideration and scrutiny.
My starting point would be to reflect on where we are today with some of the issues at hand and on what we are trying to achieve.
Although the reform of banking is important, does my hon. Friend agree that we have not heard today about the importance of the financial services sector and banking as a whole? The sector employs 1.1 million people and contributes 12% of the total tax take and 10% of UK GDP. We should be talking about how to create a strong and vibrant sector that helps to grow the UK economy.
My hon. Friend makes a very important point and I hope that some of my comments later will enthuse her about my stance on that issue.
Not many people would disagree that we need to move from irresponsible banking practice to responsible but successful banking, from poor Government regulation to effective regulation, from bailing out the banks to getting taxpayers’ money back, from the state ownership of banks to putting them back into private ownership, and from the state guaranteeing banks to ensuring that they stand on their own two feet and are not too big to fail. We need to draw some important distinctions when we consider such matters. There is a distinction between taxpayer-owned banks and private banks and we also need to take into account the taxpayer guarantee. When we consider irresponsible bankers—who now seem to be epitomised by Fred Goodwin, who should not be singled out but seems to be taking the brunt of the blame for all the irresponsibility in the banking industry—there should be a distinction between their type of banking and the more responsible banking that many are trying to promote.
One person who was brought in to try to promote more responsible banking and to get RBS back on its feet was Stephen Hester. He came in and took on a job, and although we might all agree or disagree with the definition of the success that he was tasked with bringing about, the fact is that he was given that definition—I think by the Labour party, when it was in government—and now Labour seems to want to move the goalposts and change the definition of success or failure within his remit.
(12 years, 9 months ago)
Commons ChamberThe youth contract, which I have mentioned, along with the Work programme and many other things that we are doing, will help the young people in the hon. Lady’s constituency, and I very much sympathise with the position that she has described.
Does my right hon. Friend agree that apprenticeships are an important part of the solution, by giving young people the opportunity to build their skills? We have record numbers of apprenticeships; indeed, the number of them in my constituency has doubled.
I agree with my hon. Friend: the apprenticeship programme is a vital part of tackling youth unemployment and lifting the skills in our work force. It is a real shame that the Opposition now seem to be opposing the extra investment in apprenticeships that we have made.
(12 years, 11 months ago)
Commons ChamberI am not sure that I agree with the hon. Gentleman that austerity measures are to blame, but I certainly agree that that is a real problem. Of course one of the consequences of the ongoing eurozone crisis has been an increase in bank funding costs across the European continent. The further disruption to the financial system is having an impact on exports to the eurozone, which is one of the reasons that this crisis is having a chilling effect on the British economy. Later today, I will be going to another meeting of European Finance Ministers in Brussels to try to get a better resolution of the problems.
In my constituency in the London borough of Hounslow, we have a real and immediate shortage of school places. I therefore welcome the Chancellor’s announcement today of the £600 million investment in school places. Will he confirm that that will mean an extra 40,000 places for school children and will he say when that money will become available?
We are addressing the problem of basic need, which was ignored by the previous Government. I know in places such as my hon. Friend’s constituency, the problem is acute. Let me write to her about the specific impact on her constituency and how many additional places the investment will create in the surrounding area.
(13 years ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
I think we would find that our credit rating would be under pressure, as Standard & Poor’s suggested in its report last month, and we know that when credit ratings are downgraded, the natural consequence is higher interest rates, which hits families and businesses and makes recovery harder to achieve.
The Leader of the Opposition does not believe that the EU has too much power. Will my hon. Friend confirm that we will never go into the euro?
(13 years, 4 months ago)
Commons ChamberI want to put this debate in the context of Her Majesty’s life of service to this country. As we are all aware, the Queen fulfils a number of duties as Head of State, including her constitutional duties, such as the state opening of Parliament, giving Royal Assent to legislation, carrying out state and royal visits overseas, and receiving state and official visitors. However, the Queen, and indeed the whole royal family, play a much greater role in our society: that of providing a focus for national identity, unity and pride. They recognise success and contribute to our nation through their public service and support for the voluntary sector, which includes many of the unsung heroes in our local communities. The Queen and the royal family also support the vulnerable and highlight the need to help in challenging areas of society.
We need only cast our minds back a couple of months to the royal wedding of the Duke and Duchess of Cambridge for an illustration of how much the monarchy means to everyone in this country, and indeed across the world. The royal family is a hard-working institution, and we are rightly proud of it in this country. As we heard earlier, the Queen entertains almost 50,000 people per year, not to mention the many thousands of people she visits around the country and the world.
It is difficult to quantify the full benefit of the royal family, not just to tourism and our country’s status abroad, but to our national identity, history and traditions—the things that make us proud to be British. They also support our values of freedom, democracy, the rule of law and equality.
More specifically on the motion, the Queen and the royal household currently receive funding from several sources, as we have heard. However, following the agreement made in 1760 in return for the fixed annual payment, Crown lands are managed on behalf of the Government, and the surplus revenue goes to the Treasury. In the last financial year, that amounted to more than £210 million. Let us be clear about this. In the last financial year, the Queen and the royal household received £38.2 million in total from the Government, and paid back to the Treasury £210.7 million in surplus revenue from the management of the Crown Estate. In other words, they contributed a net sum to the Government of £172.5 million. That sounds like a pretty good deal to me.
Regardless of that net contribution to our economy over the past decade, the Queen and her staff have made significant efforts to make the royal household more efficient, as the Chancellor said. Head of State expenditure has more than halved during that time from the £87.2 million in 1991-92, to £38.2 million in 2009-10, and the projected spend this year of £35 million.
As my right hon. Friend the Chancellor outlined in the Chamber today, a new sovereign support grant will be introduced to cover funding for the Queen and the royal household. The grant will combine all the sources of funding into one sum covering all the monarchy’s official expenditure, not just the expenditure currently covered by the civil list. This will simplify an overly complex process for allocating funding—one that is haphazard at best. The level of funding will be linked to the Crown Estate’s surplus and will provide levels similar to those currently received. Surpluses and funding will be held in reserve for future years and levels will be protected from falling significantly from previous years. As we heard, full parliamentary scrutiny and audits of all expenditure will continue. The proposals will provide for continuity in the event of the succession of a new monarch so as to ensure certainty and stability for the royal family and household. I believe completely in and support the three principles that the Chancellor outlined.
In summary, the sovereign support grant will give the royal household greater control to manage its funding and continue its efficiency measures. It will also provide clarity, flexibility and longer-term planning, and will make it much easier to communicate the finances of the Queen and the royal household to members of the public. The sovereign grant Bill is consistent with the Government’s quest for greater transparency of funding, which we are trying to get across government, together with increased accountability and focus on achieving value for money for taxpayers. It also, importantly, continues to support the sovereign in the long term in the outstanding contribution that she makes to this country on a daily basis. I therefore support the motion.
(13 years, 7 months ago)
Commons ChamberOrder. I am sorry but I must repeat, and I hope that the message will be heeded, that questions must be about the policy of the current Government.
Does my hon. Friend agree that raising the income tax threshold, protecting spending on the NHS and increasing spending on social care will definitely benefit women?
(13 years, 10 months ago)
Commons ChamberWhen we look at 2011 and onwards, we see that this is a Government who are bringing in the pupil premium and funding social care. Labour Members, when they were in government, were planning to make cuts in 2011-12. Where would they have made their cuts? We have done everything we can to protect the poorest in the very difficult circumstances left us by the Opposition.
Does my hon. Friend agree that the pupil premium in the comprehensive spending review will have a transformative effect on helping the poorest in Brentford and Isleworth, and elsewhere?
Within the comprehensive spending review we have given priority to school funding. The pupil premium will help the poorest, which is indicative of the Government’s values in looking to the long term, looking at fairness, and ensuring that young people have an opportunity that they did not necessarily get under the previous Government.