Oral Answers to Questions
Michael Fabricant Excerpts(8 years, 5 months ago)
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Robert Halfon
It is always a pleasure to answer the hon. Gentleman. He will be pleased to know that the Cabinet Office does the same for the whole UK.
Michael Fabricant (Lichfield) (Con)
Were the Minister to go to the Llyn peninsula and do a six-week Ùlpan course, he would learn fluent Welsh, I can tell him. Having served in 1993 on the Welsh Language Bill, of which our party can be very proud, I know how important it is that it be clearly laid out whether things are in English or Welsh. Sometimes they are in Welsh and then in English, and sometimes in English and then in Welsh. May we have a systematic approach across Government?
Robert Halfon
My hon. Friend will be pleased to know that we are doing a lot from the centre to encourage Departments to support better the needs of Welsh language speakers. Earlier this year, together with the Wales Office, we conducted user research into their needs, and as a result we are helping Departments to identify a set of Welsh language end-to-end user journeys, such as online self-assessment, that could be better supported by gov.uk.
Oral Answers to Questions
Michael Fabricant Excerpts(8 years, 9 months ago)
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Greg Hands
The hon. Gentleman is absolutely right. Job creation is vital in the enterprise zone programme. Over the course of the previous Parliament, the programme supported more than 15,000 jobs, which brought in £2.1 billion of private investment.
Michael Fabricant (Lichfield) (Con)
19. My right hon. Friend will know that there is already a successful local enterprise zone within the Greater Birmingham and Solihull LEP, of which Lichfield is a member. Will the Government now accept invitations from LEPs, which already have zones, for further zones?
Greg Hands
I thank my hon. Friend for that question. The Government have opened up the bidding round for new enterprise zones, and are encouraging LEPs to work with towns and rural areas to develop new sites. The bidding round is open to all LEPs across England, but only those sites with strong commercial propositions and value-for-money cases will be accepted.
Productivity
Michael Fabricant Excerpts(8 years, 10 months ago)
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Chris Leslie
The evidence is very clear that we have had persistently poor productivity in recent years. I will talk about the impact of Government investment on infrastructure and tackling the skills challenge that we need to address. The issue has been very much kicked into the long grass in recent years, and that is not good enough.
Michael Fabricant (Lichfield) (Con)
I commend the hon. Gentleman for introducing this debate on an important subject. Does he accept that in certain areas and segments, such as car manufacturing, UK productivity is high? At Nissan, for example, productivity is as high as at any car manufacturer in Europe. Will he applaud the Government’s proposals to create 3 million apprentices? Nissan and other manufacturers accept that it is through the apprenticeship schemes that productivity will be raised.
Chris Leslie
It is important to recognise that productivity problems are not the same across every single sector. Some sectors are managing to break through and making a difference, perhaps relative to other sectors in other parts of the world. It is important that we focus on apprenticeships and skills, but the quality of those apprenticeships is key as well. I will say more about skills, on which we have just had an Opposition day debate.
Oral Answers to Questions
Michael Fabricant Excerpts(8 years, 10 months ago)
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Michael Fabricant (Lichfield) (Con)
My right hon. Friend has been enthusiastic and proactive in promoting the northern powerhouse, but will he shift his gaze southwards towards the midlands? I suggest to him that the midlands has the productivity that the United Kingdom needs, and the midlands engine needs promotion too.
Mr Osborne
I agree. That is why I was recently in both Derby and Birmingham after the election stressing that there is a massive potential for the midlands to be this engine of growth, and I am sure Lichfield will be a key part of that engine.
Oral Answers to Questions
Michael Fabricant Excerpts(9 years, 3 months ago)
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Michael Fabricant (Lichfield) (Con)
3. What assessment he has made of the effects of recent trends in the price of oil on the economy; and if he will make a statement.
Andrew Percy (Brigg and Goole) (Con)
5. What assessment he has made of the effect of falling oil prices on households.
The Chancellor of the Exchequer (Mr George Osborne)
The fall in the oil price clearly means that certain sectors such as the North sea face real pressure, which the Chief Secretary and I are determined to help them with, but overall this is a good thing for the United Kingdom and for British families. Today’s GDP figures confirm that the recovery is on track, and our plan is protecting Britain from the economic storm with the fastest growth of any major economy in 2014. However, the international climate is getting worse, and with 100 days to go to the election, now is not the time to abandon the plan and return Britain to economic chaos.
Michael Fabricant
We have all noticed that we no longer hear about the cost of living crisis. Could my right hon. Friend tell me precisely how the change in oil prices has affected the retail prices index and how that compares with wage inflation?
Mr Osborne
Inflation is at 0.5% and wages are growing at three times that rate. If the oil price is fully passed on—and we have put pressure on the petrol and utility companies to do so—British families will on average be £750 better off. If we had accepted the ludicrous price freeze proposed by the Opposition we would have locked in those high oil prices and people would not see the benefit in their utility bills.
Taxation of Pensions Bill
Michael Fabricant Excerpts(9 years, 6 months ago)
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Shabana Mahmood
I was simply making the point that the reliefs are there for a reason and we have to ensure that they work for the benefit of all taxpayers, but the hon. Gentleman is right.
There is also the hard-nosed political test of making sure it is not the Government who are picking up the pieces if this all goes wrong. I reiterate our support for increased flexibility, but we have to acknowledge that this particular system has built-in risks. Under the new arrangements, a pension pot of £100,000 could be used to secure an annuity of about £6,500 that, added to the state pension, would yield the recipient a little over the UK’s national pension income, according to HMRC’s 2013 figures. Of course, it could be drawn out in one lump sum to buy the proverbial Lamborghini—it would probably have to be a second-hand one because they cost closer to £250,000 than £100,000. But what would happen then? If the recipient in question has not made the necessary contributions to receive the single-tier pension, when it comes in, will their pension be topped up to the accepted minimum level? That is not yet clear. This potentially leaves us in a dubious ethical position as well as a financially precarious one.
Our responsibilities to get this right are clear. It will affect many people, and we have both a social and financial responsibility to make sure that the changes work properly. Given that those changes are so significant, I would have expected extensive consultation by the Government before the announcements were made, but unfortunately that was not the case. As my hon. Friend the Member for Kilmarnock and Loudoun said, despite beginning well, with work on the single-tier pension and auto-enrolment—policies based on evidence, consultation and consensus, which built on the work of the previous Government—these reforms have been rushed and somewhat erratic. The Government did not consult before making the announcements, either with consumers or with the industry. Nor have the Government allowed sufficient time for the changes to be executed.
Despite the enormity of the change and the change of emphasis from the importance of accumulation to the ease of access, we are left in a situation in which outside experts are lamenting the lack of time to get this right. Regarding the need for proper guidance for consumers, the ABI’s director general said:
“The guidance guarantee is a crucial part of the Government’s pension reform, and the industry fully supports the Government’s intention to provide free, impartial guidance to savers on their options as from next April. But time is not on our side. No one should under-estimate the work that needs to be done to make this a reality, which is why the Government have some urgent decisions to make.”
We have to ask why the Government are in such a hurry to push through reforms when some of the essential underpinning to make them work seems to be missing. I have to say I am glad that I will not be in the first tranche of retirees to experience these reforms, unlike the hon. Member for Redcar.
That brings us to the issue of good guidance, or lack thereof. We know that changes of this magnitude will bring a significant number of new products to the market. That is not in itself a bad thing, as some products will be better than others; that is the nature of the marketplace. It is also well recognised that on the whole there is a requirement to ensure that consumers are far better informed—I have already outlined the evidence provided by the Financial Services Consumer Panel. However, in addition to extensive consultation, we would expect the Government to have done significant work on the guidance mechanisms before making the announcement in the Budget, but unfortunately that was not the case. From the start, a significant level of confusion has surrounded what the Government meant when they said that reforms would be accompanied by “advice”. It later transpired that it was not “advice” that would be provided, but rather “guidance”. That is an important distinction, as we have heard, since guidance carries none of the same legal protections as advice, which is regulated and therefore considerably more expensive to provide.
When the Government have been pushed on the matter, I am afraid their language has been far from reassuring, to the extent that the measure looks like a mere add-on to the whole pension reform programme. In my opinion, that suggests a slightly cavalier attitude, which may prove to be short-sighted. The Financial Conduct Authority’s consultation, “Retirement reforms and the Guidance Guarantee”, stated that,
“to be effective the guidance will need to be tailored, providing consumers with sufficient personalised information, so that they can understand their options and make confident, informed decisions about their retirement choices.”
We appear to be getting something far less useful. In evidence to the Work and Pensions Committee in April, the Pensions Minister suggested that guidance will be more general in nature:
“The thing we are talking about is free to the customer. There is no charge for it. It is what we call ‘guidance’, rather than independent financial advice, so it is not formal, detailed or product-specific; you can go and buy that if you want to, but this is familiarising people with the options they have, and some of the concepts, even. Most people do not know what an annuity is.”
There is much that we do not know. We do not know the detail of what will be funded, the level of levy used to pay for it, what the guidance will be expected to cover, or what it is expected to achieve. Even at the end of the debate, we appear to have more questions than answers—questions that go to the heart of issues that will be central to ensuring that the programme works. We will be picking up on those issues of detail, fairness and guidance when the Bill reaches Committee.
Michael Fabricant (Lichfield) (Con)
On a point of order, Madam Deputy Speaker. This is nothing to do with the debate—I apologise to my hon. Friend the Minister for interrupting it—but I was due to attend an event this evening at which I was, I believe, to receive an award. I understand at very short notice that I have been banned, along with a number of national journalists. The person who banned me was Mr Speaker, and I was wondering whether that is normal behaviour for a Speaker.
Madam Deputy Speaker (Mrs Eleanor Laing)
The hon. Gentleman has made his point most eloquently and the House has heard it. I confess to having no knowledge whatsoever of the matter to which he refers, and while I am certain that Mr Speaker would never wish any discourtesy to any Member of this House, the hon. Gentleman will understand that the matter he raises is not something on which the Chair can take any action at this moment.
Oral Answers to Questions
Michael Fabricant Excerpts(10 years ago)
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Michael Fabricant (Lichfield) (Con)
1. What progress has been made on the delivery of broadband in rural areas; and if he will make a statement.
The Secretary of State for Culture, Media and Sport (Sajid Javid)
The Government’s broadband programme will increase superfast broadband coverage to 95% of UK premises by 2017. The programme has already delivered superfast broadband to more than 500,000 premises. A further 20,000 premises are gaining availability per week and that number is set to rise to 40,000 per week by the summer.
Michael Fabricant
Who would have thought just a month ago, when my right hon. Friend the Member for Bromsgrove (Sajid Javid) and I were sharing a drink at Birmingham City university, that he would be where he is now? I congratulate him on his appointment on behalf, I am sure, of both sides of the House.
My right hon. Friend talks about superfast broadband and there has been huge progress, but I am afraid that there are still large areas of the country where there is no broadband at all—the not spots. When will broadband coverage be as universal as electricity supplies?
Sajid Javid
I thank my hon. Friend for that warm welcome. I remember that drink well. He mentioned my constituency of Bromsgrove. Like his constituency, it is semi-rural and there is naturally concern among my constituents about broadband coverage. He will therefore be pleased to know that the Government are providing £780 million of central funding to support superfast broadband, so that 95% of UK premises can enjoy it by 2017. We have also launched a £10 million fund to explore with suppliers broadband solutions for the other 5%.
Financial Services (Banking Reform) Bill
Michael Fabricant Excerpts(10 years, 10 months ago)
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Michael Fabricant (Lichfield) (Con)
On a point of order, Mr Deputy Speaker. In the light of the fact that the International Monetary Fund has upgraded the United Kingdom’s projection for growth, and that the European zone’s projection has been downgraded, I wonder whether you have been given any indication whether the Chancellor of the Exchequer will be making a statement, as I, for one, would like to congratulate him.
Mr Deputy Speaker (Mr Lindsay Hoyle)
On the last part of the hon. Gentleman’s question, I think that he has already achieved what he wants. The answer to the first part of his question is no.
Third Reading
Autumn Statement
Michael Fabricant Excerpts(11 years, 5 months ago)
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Mr Osborne
The first thing I would say to the right hon. Gentleman is that the forecasts we produce are independent—they are produced by the Office for Budget Responsibility. This is the OBR’s best estimate of what will happen to GDP over the next few years. As the OBR says, its forecast two years ago was wrong because of three things, which it talks about. One is that the impact of the financial crisis was greater than it had assessed. Secondly, there was an oil price shock in 2011, which hit all oil-consuming economies. Thirdly, there was the impact of the eurozone, which the right hon. Gentleman has spoken about at length. All those things have had an impact, not just on the GDP of this country but on every western democracy in the world. Indeed, they have also had an impact on some of the emerging economies.
The right hon. Gentleman makes a good point about capital investment. He speaks with experience: it is often difficult to get these projects out the door. We are speeding up the delivery of these projects—the road schemes are under way. The capital we have allocated is for the next two years. The road schemes and the like that I announced are due to start—because they have got planning permission—in the next two years.
Michael Fabricant (Lichfield) (Con)
Is the Chancellor aware that since he sat, down the markets—not the Opposition—have given their verdict? The answer is this: the latest 10-year bond rate for Italy is 4.5% and for France it is 2%—just over, in fact—while the rate for British bonds is only 1.8%. It is the markets that count, not the party that caused the problem in the first place.
Mr Osborne
My hon. Friend reminds us that we get a daily verdict on the credibility of our economic policy from bond investors. We are borrowing money more cheaply than anyone who has done my job before us, and there is a real benefit for taxpayers and members of the public in that. We have saved £33 billion in debt interest that we were forecast to have to pay in 2010, which, as I said in my statement, is more than the entire defence budget.
Bank of England (Appointment of Governor) Bill
Michael Fabricant Excerpts(11 years, 10 months ago)
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Mike Freer
Thank you, Madam Deputy Speaker. I shall indeed turn to the substance of the debate, but I find it rather sad that an hon. Member seeking to restore the rights of Parliament should seek to deprive another hon. Member of the right to continue the long-established tradition in the House of speaking at length, if they so choose.
I was talking about the original subscribers, so I—[Interruption.] I cannot hear what the hon. Member for West Ham (Lyn Brown) is chuntering about. If she wishes to intervene, she should please do so. [Interruption.]
Lyn Brown (West Ham) (Lab)
I am moving places. Let me gently say to the hon. Gentleman that talking at length on a Bill is indeed an honourable tradition, and it is called filibustering.