Matt Hancock
Main Page: Matt Hancock (Conservative - West Suffolk)Department Debates - View all Matt Hancock's debates with the Department for Education
(10 years, 9 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Mr Jim Cunningham (Coventry South) (Lab)
6. In how many of the last 24 months net lending to business by banks has risen.
The Minister for Skills and Enterprise (Matthew Hancock)
The most recent data from the Bank of England show that net lending to small and medium-sized businesses was positive in March, June and November, and the bank’s most recent trends in lending and credit conditions reports show that confidence is beginning to return, helped by interventions such as the business bank. Gross lending continues to be higher year on year, but there is still much more to do.
Mr Cunningham
When will the Government stop blaming the previous Government and everybody else and get the major banks such as Lloyds and HSBC actually lending to small businesses? Small businesses in my constituency and up and down the country are suffering very badly.
Matthew Hancock
In order to understand the problem that we are having to address, it is important to analyse why it came about. We all know why it came about—because of the under-regulation by the Labour party. It is absolutely true that gross lending increased by £4 billion in October 2013—the highest amount since 2009—so we are moving in the right direction. But there is much more to do to clear up the mess left by the Labour party.
Mr Philip Hollobone (Kettering) (Con)
May I report from Northamptonshire that businesses are not having to go to lending to invest, but generating their own cash? The latest survey from the Northamptonshire chamber of commerce shows that
“44% of manufacturers and 21% of service sector respondents reporting an improvement”
in their cash flow
“with 24% proposing to invest in plant and machinery and 44% in training.”
Businesses are not necessarily dependent on lending from banks.
Matthew Hancock
Of course some businesses are dependent on lending and it is very important to ensure that that problem is sorted out, but my hon. Friend rightly raises the fact that many businesses have an increasing amount of cash on their balance sheets. Encouraging them to get out and spend that cash and invest is an absolutely critical reason for increasing business confidence. I am delighted that business confidence is at record levels. Northamptonshire is one of the most supportive places for business and has recently won an award for exactly that.
Mr David Hanson (Delyn) (Lab)
7. What recent assessment he has made of the number of complaints and the level of consumer detriment relating to estate agents’ practices in England and Wales.
Mr Michael McCann (East Kilbride, Strathaven and Lesmahagow) (Lab)
9. If he will make it his policy to better use procurement by his Department to increase apprenticeship opportunities.
The Minister for Skills and Enterprise (Matthew Hancock)
We consider opportunities for the provision of apprenticeships on an individual basis. Last month, however, we announced a new college to train the next generation of world-class engineers working on the construction of High Speed 2. We hope that that will create up to 2,000 apprentices. Crossrail is the largest procurement project across government—indeed, it is the largest construction project in Europe—and has a target of 400 apprentices over the life cycle of the project as part of its procurement.
Catherine McKinnell
I thank the Minister for his answer, and note his mention of procurement. In 2010, I introduced a Bill to increase the number of apprenticeships by means of public contract procurement. The proposal was adopted by the official Opposition, and was taken up by my hon. Friend the Member for Denton and Reddish (Andrew Gwynne) in his Apprenticeships and Skills (Public Procurement Contracts) Bill. Does the Minister agree that it would be an excellent way in which to mark national apprenticeship week for the Government to adopt the policy officially, and to ensure that it is rolled out across the board?
Matthew Hancock
As I have said, we include apprentices in procurement contracts. Of course procurement must put value for money at the top of the list to ensure that we spend taxpayers’ money wisely—which, these days, we do—but we must also ensure that, in national apprenticeship week, we celebrate the value that apprentices can bring, and the value that they can often add to projects.
Mr McCann
I do not thank the Minister for his answer, because he did not answer the question. When he is considering whether to boost apprenticeships through the use of procurement, what is a higher priority for him: cheaper contracts, or the supply of apprenticeship opportunities to our people?
Matthew Hancock
As I have said, we are including apprentices in procurement contracts through Crossrail and High Speed 2. We will also be establishing a nuclear college, so that it will be local people who, through apprenticeships, ensure that Britain maintains the skills that will enable us to build infrastructure such as the new civil nuclear power stations.
Greg Mulholland (Leeds North West) (LD)
For every pound spent on an apprentice, £18 is invested in the economy. Will the Minister join me in welcoming the £16 million new facility at Leeds College of Building, which will deliver apprenticeships for 7,500 students and will make a huge difference to apprenticeships in the city?
Matthew Hancock
I have been to Leeds to see what is being done with apprenticeships. Building colleges for building is an important part of ensuring that we can build our buildings in the future, and using apprenticeships to do that is an important way of improving and retaining skills, but, crucially, it also gives thousands of young people a chance to obtain the skills that they need in order to hold a sustainable job and have a secure future.
Neil Parish (Tiverton and Honiton) (Con)
The building of Hinkley C will create a huge amount of employment in and around not only Somerset but Devon. Apprenticeship schemes will certainly work very well when it comes to building a power station.
Matthew Hancock
I agree with my hon. Friend, and I pay tribute to Bridgwater college, which has put an awful lot of effort into ensuring that we build up the courses that will provide us with new nuclear skills.
Mr Liam Byrne (Birmingham, Hodge Hill) (Lab)
National apprenticeship week provides an extraordinary opportunity to celebrate the amazing work of our apprentices, but it is a matter of concern to all Members that there are now 5,000 fewer young people studying in apprenticeships than there were at the time of the last election. That is why news of huge staff cuts at the National Apprenticeship Service is so worrying. The excellent Nick Linford of FE Week says that they may amount to 20%, and I hear from front-line staff in Birmingham that the figure may be 50%. The Minister refused to answer a written question on the subject, and he dodged a question about it in the House yesterday. Will he now tell us how many staff at the National Apprenticeship Service—which is part of the Skills Funding Agency—will lose their jobs in the next year?
Matthew Hancock
The National Apprenticeship Service does a magnificent job in putting together events such as national apprenticeship week, and it is important to ensure that we run it as effectively as possible. I can tell the hon. Gentleman that a record number of people have participated in apprenticeships in the last year, and that they are doing a fantastic job. It is true that we had to remove some low-quality apprenticeships that were only six months long. The Opposition claim that they want high-quality apprenticeships, but then complain when we remove low quality. I will not take any lessons from them.
John Mann (Bassetlaw) (Lab)
10. On what date he plans to visit Bassetlaw to inspect and meet local businesses.
Andrew George (St Ives) (LD)
17. What assessment he has made of the effects on businesses of banks’ lending practices.
The Minister for Skills and Enterprise (Matthew Hancock)
Banks’ lending practices—good or bad—can have an impact on the willingness of small businesses to approach their bank. We are alert to any evidence of poor practice, and we take up concerns both with the banks and, where necessary, with the financial services regulators.
Andrew George
While bankers are still happily filling their boots with multi-million pound bungs, thousands of small and medium-sized enterprises across this land are being sucked dry by those same banks. Regulators are offering only woefully limp regulation at the moment, so is it not now time for Ministers to step in to protect SMEs from these mis-sold interest rate hedging products?
Matthew Hancock
Of course, we have strengthened the regulation of the banking system enormously in the past three years. As yesterday’s figures from the Financial Conduct Authority show, 62% of businesses that might have been mis-sold interest rate swaps have now been told by the banks whether they are owed compensation under the scheme regulated by the FCA, and all businesses owed redress will have been made offers by the end of June.
Stephen McPartland (Stevenage) (Con)
18. What support his Department is providing to apprenticeships.
The Minister for Skills and Enterprise (Matthew Hancock)
We are well on our way to delivering the agenda of apprenticeship reform. This is national apprenticeship week and, as we know, across the country participation has increased by about 80% since the election. In Stevenage, participation in apprenticeships since the election has more than doubled.
Stephen McPartland
Apprenticeships are a great opportunity to reduce the gap between education and employment, and in Stevenage last year more than 800 young people took up the opportunity of an apprenticeship. Yesterday, I launched a jobs fair so that we can push towards 1,000 young people taking up the apprenticeship opportunity this year. Will the Minister join me in congratulating all the local partners—the jobcentres, employers, schools and colleges—on the work they are doing?
Matthew Hancock
I add to those in that list, all of which I congratulate, my hon. Friend, who has obviously played an important role in bringing people together. Apprenticeships, especially high-quality ones, can happen only as a partnership between training providers and employers, and of course the Government, with some of their funding, to give young people the opportunities they need.
Julie Hilling (Bolton West) (Lab)
On Monday, I had the pleasure of hosting a group of apprentices from MBDA here in Parliament. The group included Anna Schlautmann, the manufacturer apprentice of the year, and Jade Aspinall, Semta’s apprentice of the year. MBDA has a fantastic apprenticeship programme, so what is the Department doing to promote best practice in apprenticeships?
Matthew Hancock
These apprentices clearly had an interesting time, because they met not only the hon. Lady, but the Minister of State, Department for Business, Innovation and Skills, my right hon. Friend the Member for Sevenoaks (Michael Fallon)—and indeed, I also met them. They were extremely impressive, and showing the highlights of the best apprentices is something we should all celebrate across this House.
Mike Thornton (Eastleigh) (LD)
Figures released this week show that every time a local company hires an apprentice their bottom line gets an average boost of £2,100. In Eastleigh, that means that new apprenticeships alone provided a local boost of more than £2 million in 2012-13. Will the Minister join me in praising local businesses in Eastleigh, such as GE Aviation and Arlington Rail, which have a great track record in delivering high-quality apprenticeships? Will he also join me in praising the work of my hon. Friend the Member for Burnley (Gordon Birtwistle), who is leading the charge on this?
Matthew Hancock
Yes, of course I will join my hon. Friend. I also join him in paying tribute to my hon. Friends the Member for Burnley and for Harrogate and Knaresborough (Andrew Jones), who are apprenticeship ambassadors and do enormous work, in this House and beyond, to promote apprenticeships.
Ann McKechin (Glasgow North) (Lab)
19. If his Department will make an assessment of the main causes of insecurity in the workplace.
Eric Ollerenshaw (Lancaster and Fleetwood) (Con)
T2. Will the Minister join me in congratulating Lancaster chamber of commerce and Lancaster and Morecambe college, ably supported by the Lancaster Guardian, on putting on courses for local businesses to demonstrate the benefits of apprenticeships? Does he accept that such local initiatives will build on this Government’s success in putting real apprenticeships back on the career map?
The Minister for Skills and Enterprise (Matthew Hancock)
I agree wholeheartedly with my hon. Friend. The Lancaster Guardian, like many local newspapers across the country, plays an important role in changing the culture, supporting apprenticeships and ensuring that young people know the opportunities that are available to them.
Mr Chuka Umunna (Streatham) (Lab)
In the last annual report and accounts of his Department, the Secretary of State said that the Department remained
“on track to deliver against our spending review settlement.”
However, the head of the National Audit Office said in the same report that there are significant uncertainties relating to billions of pounds’ worth of the Department’s assets, which will affect its financial position. Can the Secretary of State explain the discrepancy?
Susan Elan Jones (Clwyd South) (Lab)
T3. I know that many of us were waiting with a great deal of interest for the Financial Conduct Authority’s new rules on payday lending, but does the Minister share my disappointment that it did not come up with a much tougher action plan on advertising?
Matthew Hancock
We were clear in our consultation on payday lending that we had put all the options for change on the table. We have taken the consultation seriously and that has included my meeting many of the stakeholders. We will do what it takes, but we will do what works—and what works for businesses large and small, focusing especially on the needs of small businesses—but we will not make changes just to satisfy calls and headlines. We will make sure that the system works as properly as possible.
Andrew Stephenson (Pendle) (Con)
T5. Pendle businesses were delighted when the Government published the draft assisted area status map back in December, proposing to include part of Pendle for the first time. The current map, drawn up under the previous Government in 2007, did not include a single part of Pendle, yet the new map will include about 50% of the borough. Will my right hon. Friend update the House on the progress in bringing the new map into force?
Mel Stride (Central Devon) (Con)
T6. Agriculture matters in my constituency yet the average age of my farmers is about 60, so we have a desperate need to encourage young people to go into farming. I know that my hon. Friend the Minister for Skills and Enterprise made a statement to the House yesterday about the reforms to the apprenticeship scheme, but will he outline how his reforms will encourage young people to use apprenticeships to go into farming?
Matthew Hancock
Of course, apprenticeships increasingly cover the whole economy, including farming and agriculture. The number of apprenticeships in agriculture has increased by a quarter and I am pleased to say that we are working with farmers in our trailblazer reforms of apprenticeships to get them and the agriculture sector to write the rules on what training is needed to ensure that apprenticeships work better for them in future.
John Cryer (Leyton and Wanstead) (Lab)
Bogus self-employment continues to spread through the construction industry, in part because the number of HMRC employer compliance inspections has halved in four years. Does the Secretary of State regret that?
Mr Philip Hollobone (Kettering) (Con)
Tomorrow in Kettering, with local employers, Tresham institute will launch Experience Kettering, a workplace experience scheme for hard-to-place young people aged 18 to 24. Would the Skills Minister congratulate Tresham institute on this initiative and send some words of encouragement?
Matthew Hancock
I would be delighted to congratulate Tresham institute on what it is doing to help young people into work. Work experience is a vital part of getting a job and I hope it is also working on the new traineeship programme, which is designed to help people into an apprenticeship or a sustainable job.
Barry Gardiner (Brent North) (Lab)
What impact and what offence does the Secretary of State believe have been caused to Jewish and Muslim businesses by the statement from the chief veterinary officer today, threatening to ban the practice of shechita and halal?
Julie Hilling (Bolton West) (Lab)
Apprentices in Bolton West have told me that teachers tried to dissuade them from undertaking apprenticeships, particularly if they were high-flying students. What is the Department doing to educate teachers and ensure that proper careers guidance is in place?
Matthew Hancock
That is properly a matter for the Department for Education but, as I am also a Minister there I will take this opportunity to explain that we are introducing stronger statutory guidance. There was no guidance for schools before, so we have introduced a new legal requirement on them to secure independent and impartial advice, and we are introducing stronger statutory guidance to ensure that they do so, alongside the new National Careers Service, which this Government introduced.
Nadhim Zahawi (Stratford-on-Avon) (Con)
I will meet representatives of Jaguar Land Rover tomorrow to discuss their vision for their Gaydon headquarters. As it is international women’s day on 8 March, I will also be discussing the work they do to encourage women and girls to take up science, technology, engineering and maths. The Secretary of State is passionate about getting more women on boards and, importantly, into all sort of industries, so will he join me in celebrating international women’s day and reminding businesses that they need to do their bit to encourage more women into the sciences?