GOV.UK Verify Programme

Oliver Dowden Excerpts

Tuesday 9th October 2018 Written Statements

[The Parliamentary Secretary, Cabinet Office (Oliver Dowden)]

I want to update the House on the GOV.UK Verify programme, on the creation of a digital identity market, and the provision of a digital identity service to Government.

Since its inception, GOV.UK Verify has sought to create an effective standards based digital identity market in the UK. International examples point to the challenges in successfully creating a secure digital identity framework for the public and private sector. I am proud that the UK is regarded as a global leader in this space, and that the innovative assets and standards created by the GOV.UK Verify programme have been utilised by numerous international Governments.

GOV.UK Verify is now sufficiently mature to move to the next phase of its development. The private sector will take responsibility for broadening the usage and application of digital identity in the UK.

I can confirm that contracts have been signed with a number of private sector identity providers, for an 18 month period, and with capped expenditure. These commercial arrangements formalise the transition to a private sector led model.

The Government have an immediate and growing need for digital identity. As such, I am pleased to confirm that the GOV.UK Verify programme will continue providing a digital identity service to the public sector.

Poorly secured services are vulnerable to attack from cyber crime and other hostile activity. GOV.UK Verify enables citizens to securely prove that they are who they say they are to a high degree of confidence when transacting with Government online. It is a major enabler and a critical dependency for Government’s digital transformation.

The Government will continue to provide state backed assurance and standards to ensure there is trust and confidence in the emergent digital identity market. The Government expect that commercial organisations will create and reuse digital identities, and accelerate the creation of an interoperable digital identity market. This is therefore the last investment that the Government will provide to directly support the GOV.UK Verify programme. It will be the responsibility of the private sector to invest to ensure the delivery of this product beyond the above period.

The approach announced today ensures that GOV.UK Verify will continue to protect public sector digital services from cyber threats, including identity fraud, and other malicious activity. In addition, the contracts enable the private sector to develop affordable identity assurance services that will meet future private and public sector needs.

I am pleased that the Government can continue to support the creation of a digital identity market, and the work of the GOV.UK Verify programme.

[HCWS978]

Oral Answers to Questions

Oliver Dowden Excerpts

Wednesday 12th September 2018 Commons Chamber

[Sir David Evennett (Bexleyheath and Crayford) (Con)]

4. What steps he is taking to encourage technological innovation in tackling social challenges and delivering public services.

[The Parliamentary Secretary, Cabinet Office (Oliver Dowden)]

I am determined that the public sector embraces the huge opportunities for better public services at lower cost provided by technology. That is why last week I announced five new public sector challenges from the GovTech innovation fund and why I am also leading the development of a public services innovation strategy to be published next spring.

[Trudy Harrison]

I thank the Minister for that answer. Over the summer I wrote to all my 37 care homes and GP practices and visited most of them. They are facing unprecedented challenges with recruitment and retention. How will technology help in that regard?

[Oliver Dowden]

I thank my hon. Friend for that question. I know that she is committed to this issue. We, too, are committed to using emerging technologies to improve the quality of care for patients and to empower staff. Under one of the GovTech challenges last week, we are working with a healthcare trust to ensure prescriptions are not interrupted when people move between care providers and, as Members will have seen, my right hon. Friend the Health Secretary is also very much committed to this agenda.

[Sir David Evennett]

I welcome what my hon. Friend is doing in this area, but what steps are the Government taking to harness the power of technology to help to tackle the problem of loneliness, which the Jo Cox Commission on Loneliness, the Prime Minister and Members across this House have done so much to highlight?

[Oliver Dowden]

My right hon. Friend raises an important point. Under the GovTech innovation fund, in collaboration with Monmouthshire County Council, we are working to investigate a solution to identify vehicles with spare capacity to tackle loneliness and rural isolation. That is another example of the great potential of technology to help to alleviate loneliness across society and to support people in having meaningful social relationships.

[Luke Pollard (Plymouth, Sutton and Devonport) (Lab/Co-op)]

At the weekend, I visited the Clipper, a converted pub on Union Street in Plymouth that is using crowdfunding technology in conjunction with the local authority, Plymouth City Council, to raise money for a refit. What support is the Minister giving to local authorities and communities to use new technologies to raise funds, especially in a time of austerity?

[Oliver Dowden]

The hon. Gentleman makes an important point, and I would be happy to discuss the example that he has raised. Local authorities have frequently bid for these GovTech funds. As I said, Monmouthshire County Council has been successful, as have local authorities in Northern Ireland, and I encourage others to make a bid when the next round opens shortly.

[Hywel Williams (Arfon) (PC)]

What progress is being made to ensure that my constituents can claim universal credit online through the medium of Welsh?

[Oliver Dowden]

The Government Digital Service is committed to ensuring full accessibility to all public services, including in our home nation languages, and it will certainly look into that point.

[Sir Oliver Heald (North East Hertfordshire) (Con)]

My hon. Friend will be aware that, across the public service, appointments are being missed with experts including general practitioners, consultants, nurses and employment advisers. Is there a role for technology in prompting members of the public to attend these expensive and important appointments?

[Oliver Dowden]

My right hon. and learned Friend is absolutely correct, and this is a perfect example of how we can use technology. Indeed, in my experience many GP surgeries already use methods such as text messages to prompt people not to miss their appointments. He will have seen from recent announcements that the Health Secretary is genuinely committed, as are the Government, to investing large sums in the greater use of technology in healthcare.

[Jo Platt (Leigh) (Lab/Co-op)]

The Government’s record on technical and digital innovation is appalling. Their flagship Verify system is so flawed that the NHS and Her Majesty’s Revenue and Customs have both rejected it. Having spent six years and £130 million of public money developing the system, the Government cannot even convince their own Departments to register. Judging by this dismal record, does the Minister agree that the only technological innovation this Government can stimulate will be overdue, over budget and under-performing?

[Oliver Dowden]

Specifically on Verify, I would urge the hon. Lady not to read everything that is being speculated on in the newspapers. The Government are committed to ensuring secure online digital identities, and Verify has already delivered for 2.7 million people. More broadly, let us take the example of gov.uk, which has had 5.1 billion sessions and 15.2 billion page views. That did not happen when the Labour party was in power. Let us also take the example of Notify, which is used by hundreds of organisations. The Government Digital Service is a genuine innovation of this Government, and it is delivering seamless services across Government Departments.

[Mr Simon Clarke (Middlesbrough South and East Cleveland) (Con)]

5. What contingency plans his Department is making for no deal being reached on the UK leaving the EU.

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[Nic Dakin (Scunthorpe) (Lab)]

7. What recent assessment he has made of the effectiveness of the Government’s steel procurement policies.

[The Parliamentary Secretary, Cabinet Office (Oliver Dowden)]

The Government are clear that we will do all we can to support our steel industry. The publication of indicative pipelines of Government steel requirements, alongside revised procurement guidance, ensures that United Kingdom steel producers have the best possible chance of competing for major public sector contracts. We will be reporting on our performance later this year.

[Nic Dakin]

The UK steel industry continues to face challenges. The Government promised in their 2016 guidance on steel procurement that they would publish individual Departments’ performance on steel procurement. When will they publish that information and be transparent about this?

[Oliver Dowden]

I am happy to update the hon. Gentleman on that point. I have consulted the Under-Secretary of State for Business, Energy and Industrial Strategy, my hon. Friend the Member for Watford (Richard Harrington). He has written to Departments over the summer reminding them of that duty. We are reiterating our commitment to produce that information before the end of the year.

[David Hanson (Delyn) (Lab)]

9. What assessment he has made of the merits of the by-election system used to elect hereditary peers in the House of Lords.

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[Peter Heaton-Jones (North Devon) (Con)]

T2. When considering the relocation of civil service jobs outside London, will the Minister please remember that the south-west is a great place to live, work and do business, and that the best place is North Devon?

[The Parliamentary Secretary, Cabinet Office (Oliver Dowden)]

My hon. Friend, as ever, makes a strong case for his region. The Places for Growth programme demonstrates our commitment to rebalancing the economy by moving Government jobs away from London and the south-east, and the One Public Estate programme is supporting this collaboration. I am pleased to say specifically that the Devon and Torbay partnership expects to deliver 288 jobs and land for 201 homes by 2020.

[Anna McMorrin (Cardiff North) (Lab)]

T3. We know that the Cabinet Office is preparing for the very real threat of no deal, with secret Cobra meetings and civil contingency planning. Business leaders are warning of the disaster of a no deal or a bad deal. Is it not about time that we put this decision—the biggest facing our generation—back to the people for a people’s vote?

[Robert Halfon (Harlow) (Con)]

T4 . The Government have identified £1 billion that could be saved through procurement by hospitals. What work is the Cabinet Office doing to support that £1 billion saving so that we can release £200 million of it to scrap hospital car parking charges?

[Oliver Dowden]

I know my hon. Friend’s long-standing commitment to this cause. We are committed to delivering value for money for the taxpayer by extending best procurement practice into the wider public sector. The Crown Commercial Service, which manages procurement of common goods and services for both central Government and the wider public sector, including the NHS, has already delivered more than £600 million of savings this year.

[Paul Blomfield (Sheffield Central) (Lab)]

T5. The Minister chairs the cross-departmental homelessness reduction taskforce. Rough sleeping is a huge concern to my constituents in Sheffield, but the voluntary and statutory sector tells me that it is held back from tackling it by disproportionate cuts to local government. The recent Ministry of Housing, Communities and Local Government strategy provided no new money, so will his taskforce look at the issues so that we can actually do something?

[Oliver Dowden]

The hon. Gentleman raises a very important point. The homelessness and rough sleeping implementation taskforce, which is chaired by my right hon. Friend the Chancellor of the Duchy of Lancaster and on which I serve, supports the Government’s cross-Government strategy, which was announced earlier this summer. The taskforce is also monitoring the implementation of the new Homelessness Reduction Act 2017. I would be happy to meet the hon. Gentleman to discuss the proposals he raises directly.

[Several hon. Members rose—]

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[Paul Scully (Sutton and Cheam) (Con)]

Recent figures show that almost £200 million of taxpayers’ money was spent on trade union activists last year. Would not Transport for London, for example, be better advised to spend the £5 million that it spent on trade union activities on transport for London?

[Oliver Dowden]

My hon. Friend is absolutely right. Although trade unions of course play an important role in the modern workplace, facility time in the public sector must represent value for money, which is why we have taken a transparent approach to it. We estimate that more than £120 million is being spent on it. Departments and Government agencies must seek to reduce that spending, as I am pleased to say the Cabinet Office has done; we are spending less than 0.01% of our budget on it.

[Julie Elliott (Sunderland Central) (Lab)]

T6. Will the Minister tell the House what steps he has taken to tackle the gender pay gap in the civil service?

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[Mr Paul Sweeney (Glasgow North East) (Lab/Co-op)]

Since 2010, the central civil service has been cut by 20%, which has severely reduced overall effectiveness and specialist knowledge. In the light of the demands placed on Departments by Brexit, do the Government agree that they are paying the price for that short-sightedness?

[Oliver Dowden]

The Government remain strongly committed to having an effective civil service. Thanks to funds provided by the Government, we now employ 7,000 more civil servants to deal with Brexit. With the pay settlements that we are reaching on a Department-by-Department basis, we are ensuring that civil servants are properly rewarded.

[Tom Pursglove (Corby) (Con)]

Ministers were right to listen and act on public sector steel procurement. How are the new procurement regulations bedding down, what is their effect and what benefit are they bringing to the UK steel industry?

[Oliver Dowden]

We are clear that we will do everything that we can to support our precious steel industry. All central Government Departments are now required to evaluate the social and economic benefits of procurement decisions, alongside price. That has meant that the UK’s steel producers are now in the best possible position to compete for Government work, and UK steel suppliers are able to compete effectively with international suppliers.

The Prime Minister was asked—

Oral Answers to Questions

Oliver Dowden Excerpts

Wednesday 27th June 2018 Commons Chamber

[Bim Afolami (Hitchin and Harpenden) (Con)]

11. What steps his Department is taking to encourage the use of small businesses in Government procurement.

[The Parliamentary Secretary, Cabinet Office (Oliver Dowden)]

Small businesses are the backbone of our economy, and we are determined to continue to level the playing field so that they can compete for Government contracts. That is why in April I announced a number of measures to help achieve that and have recently met the Government’s strategic suppliers and Ministers in several Departments to ensure that those measures are delivered.

[James Duddridge]

I thank the Minister for that reply. Specifically, how will coastal towns such as Southend-on-Sea benefit from the changes in this procurement procedure?

[Oliver Dowden]

As my hon. Friend will know, small businesses generate more than 16 million jobs and we are determined to level the playing field so that those in coastal towns such as Southend get their fair share of prosperity and win Government contracts. I encourage businesses in Southend to look on Contracts Finder, on which more than 17,000 small businesses are already registered, for procurement opportunities.

[Chris Davies]

Does my hon. Friend agree that it is vital that we have a vibrant and mixed group of suppliers and small businesses from all corners of the UK, including Wales, Scotland and Northern Ireland, and that they should all be considered equally in the procurement process?

[Oliver Dowden]

My hon. Friend is absolutely correct. It is crucial to ensure that we have a diverse supplier base. We have made a number of changes to the Government procurement processes to assist small businesses, including requiring prime contractors to advertise subcontracting opportunities on the Government Contracts Finder. We also divide contracts into separate lots, including by region, when that makes commercial sense.

[Bim Afolami]

I thank the Minister for his responses. As seen from my recent work on the Public Accounts Committee, there sometimes appears to be a conflict between large strategic suppliers who see themselves as aggregators of several procurement contracts for small business and other instances in which small businesses would like to get certain contracts directly from Government. Will he explain the Government’s thinking on how to balance those two approaches?

[Oliver Dowden]

We already require buying authorities to disaggregate contracts so that small and medium-sized enterprises can compete. However, there will, of course, be contracts in which disaggregation would affect value for money. That is why we recently announced that when large contractors are successful, they will be required to advertise those subcontracting opportunities on Contracts Finder, so that small businesses can bid.

[Julie Cooper (Burnley) (Lab)]

What assessment has the Minister made of the cost implications where outsourced contracts have been overturned by the High Court because of incompetent procurement processes? I refer specifically to the expensive mess created by Conservative-controlled Lancashire County Council in connection with a Virgin contract for children’s services.

[Oliver Dowden]

As the hon. Lady will know, the Cabinet Office has extensive processes to ensure successful procuring. If she is questioning the overall purpose of procuring, I refer her to the comments made earlier by my right hon. Friend the Minister for the Cabinet Office. In addition, research shows that public authorities save at least 11% by contracting out services. That means more money for health and education.

[Mr Gregory Campbell (East Londonderry) (DUP)]

The Minister referred to small businesses as the backbone of our economy. What plans does he have over this Parliament to strengthen that backbone and increase targets in terms of accessibility of procurement for small businesses?

[Oliver Dowden]

The hon. Gentleman raises an important point. In the previous Parliament, we set and met a target of 25% of all Government procurement going to small businesses. We set a challenging target in this Parliament of a third of all procurement going to small businesses. I am taking a number of steps to help us to try to achieve that.

[Bill Esterson (Sefton Central) (Lab)]

6. Thirty thousand Carillion suppliers are owed £2 billion in unpaid invoices. When will Ministers enforce the prompt payment rules for Government contracts and stand up for small businesses, or is the reality that under this Prime Minister the Conservatives really are the anti-business party?

[Oliver Dowden]

We are absolutely committed to prompt payment. That is why the Government pay over 96% of their suppliers within 30 days. In respect of application to contracting, I have just announced a consultation to ensure we can exclude contractors if they fail to pay small businesses on time.

[Martyn Day (Linlithgow and East Falkirk) (SNP)]

4. When the Government plan to respond to the report of the Lord Speaker’s Committee on the size of the House of Lords.

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[Chris Elmore (Ogmore) (Lab)]

13. What steps he is taking to widen access to senior public appointments.

[The Parliamentary Secretary, Cabinet Office (Oliver Dowden)]

We want to ensure that public boards represent the people they serve. That is why in December we launched our diversity action plan, which committed to 50% women and 14% ethnic minority representation by 2020. Just last month, I appointed Lord Christopher Holmes to undertake a review of removing barriers that disabled people might face when applying for public appointments.

[Vicky Foxcroft]

What proportion of appointments made to public bodies are people from working-class backgrounds and what proportion went to private school?

[Oliver Dowden]

The hon. Lady raises a very important point about our making sure that public appointments reflect the country as a whole. That is why we have taken a number of measures to increase diversity based on the Bridge report recommendations.

[Chris Elmore]

I am sure that the Minister agrees that we have a huge amount of talent for public appointments, including in Wales, Scotland and Northern Ireland, so will he set out what he is doing to ensure that regional voices are heard around senior public appointments?

[Oliver Dowden]

The hon. Gentleman is absolutely right. Diversity means not just ethnic diversity or gender diversity, but regional diversity. That is why, for example, we recently held an event in Glasgow to encourage people in Scotland to apply for public appointments.

[Sir Patrick McLoughlin (Derbyshire Dales) (Con)]

One way in which we could widen public appointments is to limit the amount of them to just two per person, instead of the gravy train that seems to appear as far as public appointments are concerned.

[Oliver Dowden]

As ever, my right hon. Friend is absolutely correct, and I take on board his recommendation. Diversity also means ensuring that we do not have the same old faces constantly applying for and succeeding in winning public appointments. That is why, as part of our diversity measures, we are encouraging a wider array of people to apply for public appointments.

[Tom Pursglove (Corby) (Con)]

Does my hon. Friend think that online abuse acts as a deterrent to people putting themselves forward not just for elected office, but for public appointments? Does he also agree that such abuse should be dealt with robustly and that we all have a responsibility to call it out?

[Oliver Dowden]

Yes, my hon. Friend is absolutely right, and we will be launching a consultation shortly to deal with exactly that point.

[Christian Matheson (City of Chester) (Lab)]

Edward Timpson was appointed chair of the Children and Family Court Advisory and Support Service and of the new Child Safeguarding Practice Review Panel. Andrew Tyrie has been appointed chair of the Competition and Markets Authority. Baroness Stowell was appointed chair of the Charity Commission. They are all probably worthy appointments individually, but a clear pattern is emerging, so will the Minister confirm that the main criteria now for senior public appointments is that someone has to be a former Tory MP or Cabinet Minister?

[Oliver Dowden]

As ever, the hon. Gentleman makes a rhetorical flourish. Sadly, the facts just do not bear it out. The Government’s code for public appointments is clear that political activity is neither a judgment of merit nor a bar to becoming a political appointee. If he looks at the statistics, he will see that of 1,000 candidates in the past year—2016-17—4.9% were Conservative and 4.8% were Labour.

[Luke Graham (Ochil and South Perthshire) (Con)]

8. What plans he has to mark National Democracy Week.

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[Faisal Rashid (Warrington South) (Lab)]

T7. Will the Minister please explain how the Government justify wasting time and taxpayers’ money on the “testing and scrutiny” of contractual arrangements, only to ignore their own highest possible risk rating for Capita and award it the fire and rescue contract?

[The Parliamentary Secretary, Cabinet Office (Oliver Dowden)]

As the hon. Gentleman will know, the Cabinet Office has extensive functions to ensure that we award contracts only to companies that offer the very best value, and that was exactly the case in that instance.

[Sir David Evennett (Bexleyheath and Crayford) (Con)]

rose—

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[Andrew Bridgen (North West Leicestershire) (Con)]

T5. What recent discussions has my hon. Friend had with Cabinet colleagues about the cost to the taxpayer of public sector workers’ taking trade union facility time?

[Oliver Dowden]

My hon. Friend is absolutely right. For too long, unions in the public sector have received taxpayer funding for an activity that is inadequately controlled and poor value for money, which is why we are introducing transparency in respect of facility time. We believe that proper management could save our taxpayers up to £100 million.

[Diana Johnson (Kingston upon Hull North) (Lab)]

The anniversary of the Prime Minister’s announcement of a public inquiry into contaminated blood is fast approaching. Can we expect a statement in the House to say that the terms of reference have finally been agreed and the public inquiry can get on with its work?

[Richard Drax (South Dorset) (Con)]

T8. What reassurance can my hon. Friend give that Departments will work together to deliver our ambitious plans to create more jobs and prosperity in Weymouth and on the Isle of Portland in the years ahead?

[Oliver Dowden]

Departments across the Government are committed to working with local partners in Weymouth and Portland to build jobs and prosperity. In July, representatives of a range of Departments will visit local partners to see for themselves the enormous opportunities that exist in the area, and to identify how Government policies and programmes could help to support their ambitions.

The Prime Minister was asked—

Public Sector Pay Policy

Oliver Dowden Excerpts

Tuesday 5th June 2018 Westminster Hall

[The Parliamentary Secretary, Cabinet Office (Oliver Dowden)]

It is a pleasure to serve under your chairmanship, Mr Owen. I congratulate the hon. Member for Glasgow South West (Chris Stephens) on securing the debate. I know that, in his role as chair of the PCS union parliamentary group, he takes a keen interest in matters relating to the civil service—as do I, as a responsible Minister.

This has been a valuable debate, with intelligent contributions from most—not all—hon. Members. I think I will be able to address most of those points in my speech, so if hon. Members will forgive me, I will not go into detail at the beginning. However, I shall try to cover any remaining points at the end of my remarks, because I am conscious of how much time we have left.

The starting point has to be the role of civil servants. I know from my experience—both recently as a Cabinet Office Minister and in the five years I spent in Downing Street as an adviser—the standard of our civil service. I have worked with some of the most genuinely committed, talented and hard-working public servants in our country, and I pay tribute to every one of them. At a time when our country faces many challenges, not least how we deliver Brexit, we can rely on our civil servants to help us. I see that every day in my role as a Minister, whether in the groundbreaking work of the Government Digital Service or the critical work of our civil contingencies team. Day in, day out, I see the tremendous quality of the work that they deliver.

The starting point for me and the Government is that all civil servants deserve to be rewarded for the work that they do, so that we can attract the brightest and the best. At the same time, that has to be balanced against the wider constraints faced by our public finances. I will set out some context. The shadow Minister spoke about who caused this situation, so let us remember. When we came into government in 2010, the UK had the largest deficit in its peacetime history. We were borrowing £1 for every £4 or £5 that we spent. Who caused that? It is quite clear: the last Labour Government. We had to deal with that legacy.

In that context, I make no bones about the fact that we had to take some very difficult decisions. As has been said by many hon. Members, including my hon. Friend the Member for Solihull (Julian Knight), one of those difficult decisions, given the proportion of public expenditure accounted for by public sector pay—about a quarter—was that public sector pay had to be restrained, which is why we introduced a pay freeze for the first two years of the Parliament, followed by the 1% pay cap.

[Christian Matheson]

I am most grateful to the Minister for giving way; I will only intervene once. If what he says is the case, can he explain how the last Labour Government were responsible for the crash of the sub-prime mortgage market in the United States, which caused the crash here?

[Oliver Dowden]

The problem was that the last Labour Government did not fix the roof while the sun was shining. We entered this situation as the least well prepared of any G7 country, so that when we faced those challenges, instead of having a robust fiscal situation, we were already borrowing.

[Chris Stephens]

I want to deter the Minister away from this Tory buzzword bingo, so will he explain to us what that has to do with public sector pay?

[Oliver Dowden]

Forgive me; I thought I made that very clear at the beginning. When we inherited such an enormous deficit, we had to constrain public expenditure. Given that public sector pay accounts for a quarter of public expenditure, public sector pay had to play its part. That is why we initially introduced a freeze, followed by a 1% cap from 2013 to 2017.

Those were difficult decisions, and I genuinely pay tribute to all our civil servants who had to live within that constrained pay deal. However, it is worth making a few points in relation to that. The first is that the median civil service salary has increased by 15% since 2010, which is actually the same as in the private sector. Indeed, it is greater than other parts of the public sector.

Many hon. Members also raised the gender pay gap, which is important. Clearly, more progress needs to be made, but again it is worth looking at the figures. The pay gap for full-time employee civil servant salaries is 7.2% for the mean salary and 11% for the median. That compares with 13% and 15.4% in 2008, so we are making progress, but I do not deny that we need to progress further.

[Dr Poulter]

Adjusted for age, sex and other determinants, the pay gap is actually about 3%. I am sure my hon. Friend will want to clarify that point.

[Oliver Dowden]

I thank my hon. Friend for that helpful intervention; I am absolutely sure that he is correct.

Inequality was also raised, but again let us look at the actual figures. Income inequality is down since 2010, and is lower than at any point under the last Labour Government, so let us start with the facts of the situation. Not only that, but we have helped the lowest paid. For example, when the freeze was introduced, we ensured that anyone earning under £21,000 received at least a £250 increase in their pay.

In addition, as many of my hon. Friends have mentioned, we introduced the national living wage, the effect of which has been to benefit more than 2 million people, leaving them more than £2,000 better off since its introduction. As a result, figures from the last two years show that the lowest paid in our labour market received pay rises almost 7% above inflation, and many of those who benefited were our lowest-paid civil servants. Indeed, the overall picture shows the salaries for junior grades of civil servants remaining comparable to private or public sector equivalents, and in total remuneration both administrative assistants and administrative officers—the lowest paid in the civil service—are paid more than their private and public sector equivalents in London.

[Julia Lopez]

My hon. Friend is making a strong case for the reasoning behind the Government’s decisions. However, many of us are concerned that we are now seeing false economies. For instance, restraining public sector pay is leading to increases in agency costs and a loss of talent, which has reduced productivity in some sectors. We now need to look at what those costs are. What analysis has he done of those costs versus the costs of increasing pay?

[Oliver Dowden]

My hon. Friend is absolutely right, and in a moment I will come to the fact that we have actually lifted the 1% pay cap across the board.

However, I will make one further point on the measures the Government have taken to help the lowest paid—and, indeed, all workers. I am referring to the increase in the personal allowance. When we came to power in 2010, the personal allowance—the tax-free allowance—stood at £6,475. It now stands at £11,850. That is near enough a doubling, and it means that any basic rate taxpayer will be more than £1,000 better off compared with 2010. Through a combination of ensuring that we have a national living wage and tax cuts, we have ameliorated many of the impacts of the necessary public pay constraint, which we had to introduce. In addition, we have frozen fuel duty, saving the average driver £850 compared with pre-2010 plans.

[Neil Gray]

The Minister has stated that the Government have ended the 1% pay cap, but he has not yet argued for the Treasury fully to fund that for Departments, so perhaps he can explain this point to the House. If he advocates an end to the 1% cap, what percentage pay rise does he think would be acceptable to our public sector workers, and will he argue with his Treasury colleagues to see that properly funded for all Departments?

[Oliver Dowden]

The hon. Gentleman talks about the Treasury paying for it. The Treasury does not have any money of its own. It gets money only in three ways: it taxes people, borrows or cuts spending elsewhere. We need to be honest about where the money will come from to pay for any rise.

I will come on to it in a moment, but briefly, we set this out in the spending review; we budgeted for a 1% pay rise across the board. We have now removed the requirement for a 1% rise. That creates two further opportunities. The first is that there will be flexibility, if further efficiencies can be found, to further increase pay, above 1%. In addition, if there is a significant change in working practices that can justify a significant pay rise, a full business case can be made, and that will allow the funding of a larger pay rise.

[Chris Stephens]

The Minister now appears to be suggesting to the House—I just want to double-check that what I heard him say was what he said—that each Department has budgeted for 1%. If that is the case, surely those of us who are arguing that the public sector pay cap has not ended or been lifted are correct. Is that the case, Minister?

[Oliver Dowden]

The cap has been removed; it is no longer the requirement that public sector pay rises be limited to 1%. The situation in the spending review was clear: there was a budget for a 1% rise. If Departments wish to go further than that, they need to find efficiency savings. My right hon. Friend the Chancellor of the Exchequer was perfectly clear about that in the autumn Budget.

My final point in relation to the overall terms and conditions for civil servants is about the amount of pension contribution that is made. This point was made by my hon. Friend the Member for Ochil and South Perthshire (Luke Graham). If we look at the figures, we see that for a civil servant on the median salary of £25,900, the Government provide £5,400 in pension contributions. That is the equivalent of an extra 23% on their basic pay and it is something that is not available to most people working in the private sector.

Difficult sacrifices have been made, but as a result we are finally starting to live within our means. Rather than borrowing £1 for every £4 we spend, we are borrowing £1 for every £10. That means that we are still living beyond our means, but it gives us some scope to remove the blanket ban, although that does not mean that we can suddenly fund huge increases in public sector pay. My right hon. Friend the Chief Secretary to the Treasury made it clear in September that the across-the-board 1% cap would be lifted. That means that the Government are no longer pursuing a one-size-fits-all policy for public servants.

In 2016, the Government set out five priority areas in the “Civil Service Workforce Plan”. Those areas are expected to have the greatest impact on readying the civil service workforce to respond to the challenges that the United Kingdom will face now and in the years to come. One priority is a commitment to develop cost-effective and flexible reward structures that enable the civil service to attract, retain and develop the very best talent within the pay systems in place.

In practice, there are two elements to civil service pay. I am sure that many hon. Members will be familiar with this, but I will set it out briefly. The pay of senior civil servants, who make up 1% of the civil service, is subject to an independent pay review body process, which is conducted by the Senior Salaries Review Body. Its 2018 recommendations are expected later this month, and we will respond to them in due course.

The second and by far the larger group, and the group to which most hon. Members were referring, is the rest of the civil service. Its pay and grading arrangements have been delegated to Departments and agencies since 1996. The effect of that, which hon. Members touched on, is that each Department makes decisions. As has been alluded to by the hon. Member for Glasgow South West, I continue to discuss this with the PCS, but the flexibility that it gives us is that it enables each Department to determine its own pay levels so that it can meet the needs of its own Department.

The 2018-19 pay remit guidance, which will set out the overall parameters for any future pay deal, will be published shortly. It will provide the range of average awards available to Departments, but it is for each Department to decide how to structure its pay award, and those decisions will be made in the light of their own priorities and affordability and must be discussed and negotiated with their trade unions.

[Chris Stephens]

rose—

[Oliver Dowden]

I am conscious of time, but I will give way briefly to the hon. Gentleman.

[Chris Stephens]

The Minister has been generous. Could he just answer this one question? He and the PCS have had some discussion about addressing the 200 sets of pay negotiations. Is it his intention to continue that discussion to look at whether that is actually an adequate way of funding civil service pay?

[Oliver Dowden]

The hon. Gentleman makes an important point. As he says, I have both discussed and corresponded with the representatives of the PCS on this. I will continue that discussion; I remain open-minded on it, but the point I am making is that one has to balance against that the flexibility that allows each Department to tailor to its own needs. I agree that there is an issue about 200-plus sets of negotiations, but hon. Members will understand that there was a reason for that in the first place.

I should move towards a conclusion in order to give the hon. Member for Glasgow South West an opportunity to respond. I genuinely am confident that as we approach the 2018-19 pay remit guidance, we will continue to strike the clear balance between an appropriate reward for hard-working civil servants and the need to live within our means as a nation, so that we do not continue to borrow more and load up more debt that will burden our children and grandchildren.

Oral Answers to Questions

Oliver Dowden Excerpts

Wednesday 16th May 2018 Commons Chamber

[Craig Mackinlay (South Thanet) (Con)]

11. What steps his Department is taking to support the use of small businesses in Government procurement.

[The Parliamentary Secretary, Cabinet Office (Oliver Dowden)]

Small businesses are the engine of our economy, and we are determined to level the playing field so that they can win their fair share of Government contracts. That is why, last month, I announced a range of new measures, including consulting on excluding bids for major contracts from suppliers who fail to pay their subcontractors on time and giving subcontractors greater access to buying authorities to report poor payment performance.

[Mark Pawsey]

I thank the Minister for his answer, but I recently met small businesses at the Rugby branch of Coventry and Warwickshire chamber of commerce, many of whom told me that they were put off from tendering for public sector contracts by the complexity of the process. I know that Ministers have worked hard to break down barriers, so what steps is he taking to get the message across that there are real opportunities for business among small companies?

[Oliver Dowden]

My hon. Friend raises a very important point. As he says, we have already removed complex pre-qualification questionnaires from low-value contracts, but this afternoon I will again be meeting the small business panel, which represents small businesses up and down the country, and we will be discussing exactly how we can further simplify pre-qualification questionnaires and associated bureaucracy.

[Priti Patel]

The UK’s fantastic small and medium-sized enterprises drive innovation and help to deliver our public services. What barriers has the Minister identified that he will tackle to ensure that we can see more small businesses from around the country tender for Government contracts?

[Oliver Dowden]

I thank my right hon. Friend for her question. She is absolutely right: I am committed to breaking down barriers for SMEs supplying the public sector. That is why, over Easter, I announced that we required significant contractors to advertise their contracting opportunities for SMEs on Contracts Finder. In addition, my right hon. Friend the Prime Minister has appointed an SME champion in each Department, and I have personally written to strategic suppliers to remind them of their obligation to pay subcontractors on time.

[Craig Mackinlay]

A report that I published in conjunction with the TaxPayers Alliance earlier this year found that some public sector organisations are spending up to seven times more for a ream of photocopier paper than others. What steps is my hon. Friend taking to ensure that the public sector spends taxpayers’ money more wisely in everything that they incur and spend, and will he undertake to read my report?

[Oliver Dowden]

I will, of course, undertake to read my hon. Friend’s report and will respond directly. It is precisely for this reason of getting good value for the taxpayer that we established the Crown Commercial Service to increase savings for the taxpayer by centralising buying requirements for common goods and services such as photocopier paper.

[Emma Hardy (Kingston upon Hull West and Hessle) (Lab)]

FCC Environment has public sector contracts across 160 constituencies, yet it refuses to pay its workers sick pay. The workers in Hull have been out on strike for more than 30 days after one of their colleagues developed cancer and had to return to work after a month because he could not afford to be off work. Will the Minister please look at reforming the rules for procurement so that no companies can exploit workers in this way and not pay them the basic right of sick pay?

[Oliver Dowden]

Clearly, all suppliers are subject to the general law of the land, which covers many of those points. In addition, we have introduced a supplier code of conduct, which looks exactly at those corporate responsibility points, and we review it continuously, and we will review it with such cases in mind.

[John Spellar (Warley) (Lab)]

Today’s Carillion report clearly demonstrates the urgent need to deal with the late payment culture in the construction industry, which is hitting many subcontractors. Most important and pressing for me today, four months after the Carillion collapse, is the ongoing shutdown of the Midland Metropolitan Hospital. I have raised the matter with the Cabinet Office several times, with Health Ministers, and even twice here in the Chamber with the Prime Minister, so when will the Government stop dithering and start work again on this much-needed hospital?

[Oliver Dowden]

I know that the right hon. Gentleman is very passionate about this issue. I can reassure him, rightly again, that we remain absolutely committed to getting the new hospital built as quickly as possible, and we are supporting the trust to achieve that while ensuring that taxpayers’ money is spent appropriately.

[Christian Matheson (City of Chester) (Lab)]

Although we warmly welcome moves to open up Government contracts to SMEs, the fact is that they are still being crowded out by big suppliers that regularly fail to deliver, including G4S with its youth custody provision; Capita with its failing Army recruitment contract, among many others; and, of course, Carillion. Will the Government introduce a new requirement that firms cannot bid for new Government contracts while they are still failing to meet quality standards on their existing public sector jobs?

[Oliver Dowden]

Individual contracting Departments clearly keep the performance of all contractors under review. The hon. Gentleman says that we should ensure that small businesses can bid for Government contracts. I announced a range of measures over Easter precisely to deal with that issue. Indeed, we have introduced a requirement for all subcontracting opportunities by principal contractors to be advertised on the Contracts Finder website, which gives SMEs a great chance to bid for work.

[Neil Gray (Airdrie and Shotts) (SNP)]

2. What assessment he has made of the potential merits of the recommendations of the report of the Lord Speaker’s Committee on the size of the House of Lords.

--- Later in debate ---

[Richard Benyon (Newbury) (Con)]

5. What steps his Department is taking to help improve the cyber-security of public and private sector organisations.

[The Parliamentary Secretary, Cabinet Office (Oliver Dowden)]

Our world-leading national cyber-security strategy is supported by £1.9 billion-worth of investment. It sets out measures to defend our people, businesses and assets, to deter our adversaries and to develop the skills and capabilities we need.

[Richard Benyon]

With cyber-attacks on public services in other countries and a highly publicised attack on our own NHS, does my hon. Friend agree that cyber-security is not just the responsibility of people at the top of our businesses, public services and agencies, but is actually the responsibility of every single employee, and that we have to get that culture across our public service estate?

[Oliver Dowden]

My right hon. Friend is absolutely correct. Cyber-security is a responsibility of all businesses and individuals. It is precisely the objective of the Government’s national cyber-security strategy to get that point across.

[Laura Smith (Crewe and Nantwich) (Lab)]

It is undeniable that the UK is in the grip of a digital skills gap, yet despite the Government’s national cyber-security programme, the problem is getting worse. Fewer students are taking up technology-based A-levels, and those who do are underperforming compared with their counterparts in other subjects. What conversations has the Minister had with his Front-Bench colleagues to ensure that digital technology is integrated across the curriculum and that teachers of all subjects are given the training to help them inspire the next generation into closing the digital skills gap?

[Oliver Dowden]

I do not recognise the picture that the hon. Lady paints. We are a world leader in digital technology, as I repeatedly see when I visit the Government Digital Service, which has an extensive training programme. In addition, one of the first three of the Government’s new T-levels will focus on digital.

[Several hon. Members rose—]

--- Later in debate ---

[Mr Speaker]

The hon. Gentleman has got his point on the record with considerable alacrity.

[Oliver Dowden]

The hon. Gentleman’s profession should have been orator and statesmen; that would have been a better description. He is absolutely right that we should be working with the police, and that is why one of the measures in our strategy is to deter and disrupt our adversaries, which includes states, criminals and hacktivists.

[Mr Simon Clarke (Middlesbrough South and East Cleveland) (Con)]

6. What recent assessment he has made of trends in the level of intimidation faced by people in public life.

--- Later in debate ---

[Andrew Jones (Harrogate and Knaresborough) (Con)]

T6. What progress is the Department making to encourage technological solutions in the delivery of our public services?

[The Parliamentary Secretary, Cabinet Office (Oliver Dowden)]

My hon. Friend raises a very important point. We are determined that the public sector uses technology to improve services. Indeed, just last week I announced the first GovTech challenges to help tech firms to create innovative, cutting-edge solutions to public service challenges. The first seeks to use artificial intelligence solutions to identify recruitment images that are created by Daesh and spread online.

[Mr Tanmanjeet Singh Dhesi (Slough) (Lab)]

We are now in an unsustainable and inconsistent position whereby 16 and 17-year-olds in Scotland and Wales can be trusted to vote in local government elections, yet their counterparts in England and Northern Ireland are denied that right. Does the Minister agree that if we are to maintain the integrity of our electoral process, we must have equal voting rights across the UK?

Capita

Oliver Dowden Excerpts

Tuesday 24th April 2018 Commons Chamber

[Sir Vince Cable (Twickenham) (LD)]

(Urgent Question): To ask the Minister for the Cabinet Office if he will make a statement on the financial position of Capita.

[The Parliamentary Secretary, Cabinet Office (Oliver Dowden)]

I genuinely welcome this opportunity to update the House on Capita’s announcement yesterday, which covered its 2017 full-year results, the launch of a £701 million rights issue and an update on its transformation programme. As I have told the House repeatedly, private companies can answer for themselves, but the Government’s priority is the continued delivery of public services. As we demonstrated with regard to Carillion, we have continued to deliver public services without interruption.

The House will recall that I came here in February when Capita initially announced the rights issue. Capita confirmed yesterday that it is proceeding in line with that previous announcement. The House might be interested to know that Capita’s statement yesterday announced that underlying profit before tax is £383 million for 2017, which is in line with market expectations; that, as a result of the rights issue, it has made a £21 million contribution to reducing its pensions deficit; and that, as a result of the announcement, the market reaction was a share price rise of over 10% on the day.

Capita’s board and auditors have confirmed that the company will continue to have adequate resources to deliver on its obligations, supported by its rights issue and other steps designed to strengthen its business. The rights issue is underwritten and the required shareholder vote will take place in early May. Management have confirmed that the key shareholders fully support their plan. In addition, the company has suspended dividends until it begins to generate positive cash flow; it expects to generate at least £200 million in 2020. The impact of all this has been to reduce dividends and shareholder returns in favour of other stakeholders. This, once again, is evidence of shareholders taking the burden, not taxpayers.

I understand that Members remain concerned about outsourcing companies, following Carillion’s liquidation. However, we must be clear that Capita has a very different business model and financial situation; it is not a construction business and it has minimal involvement in private finance initiatives. The measures that it has announced are designed to strengthen its balance sheet, reduce its pensions deficit and invest in core elements of its business. As I said in February, arguably these are the measures that might have prevented Carillion from getting into the difficulties that it did.

It remains the position, as I said in February, that neither Capita nor any other strategic supplier is in the same position as Carillion, but I would like to reassure the House that officials in my Department and I continue to engage regularly with all strategic suppliers. It is in taxpayers’ interests to have a well-financed and stable group of key suppliers, so we welcome the moves that the company announced yesterday.

[Sir Vince Cable]

The public will clearly be deeply concerned that yet another major Government contractor has been in financial distress, following Carillion and earlier service problems with Serco and G4S. Capita is not a construction company, but given that we are dealing with IT services that affect literally millions of people—for example, in relation to tax credits, disability testing and benefits, the congestion charge, the BBC licence fee and Army recruitment—what contingency plans has the Minister put in place since he was informed that the company’s losses are not sustainable? Is there a Crown representative in place? Have new contracts been stopped? Since the new chief executive announced cuts of £175 million a year, to make savings for the new company, how far have these been discussed with the Government, and how far have they a bearing on the provisions of those highly sensitive services? In the light of this development and earlier developments with Carillion, what steps have the Government taken to reform the system of Government procurement, so that we do not have companies low-balling to win contracts that then make losses, and to break up some of the contracts, so that we are not over-dependent on a handful of financially fragile companies?

[Oliver Dowden]

I thank the right hon. Gentleman for his questions. I will seek to address them all, but please forgive me if I miss any. I will come back to him in writing if I do.

On the company’s overall position, it is important to understand that what has happened is exactly in line with what was announced back in February, so there is not really a new development. The company’s underlying position, as it has said publicly, is that it has about £1 billion of cash that it can call upon.

The right hon. Gentleman asks about the Crown rep. I confirm that the Crown rep is Meryl Bushell. I met her this morning and continue to engage with her, as I do with all the other Crown reps.

The right hon. Gentleman asks whether new contracts had been awarded. Since the statement in February, no new contracts have been announced by central Government. However, I understand that the BBC and authorities in Northern Ireland have announced contracts.

The right hon. Gentleman asks what we are doing to break up the system of Government procurement. I always ask, with every contract that crosses my desk to be authorised, whether we have broken it up into as many small pieces as possible to make it accessible for small businesses. Over the Easter period, I made an announcement to help us meet the very challenging target we have set of 33% of all business going to small or medium-sized enterprises. We set a target of 25% in the last Parliament and met it. I announced a range of measures to help us towards the 33% target. I wrote to all the Government’s key suppliers saying that I wanted them to appoint an SME representative to try to drive business to SMEs. I have required all their subcontracting over the value of £25,000 to be published on the Government’s Contracts Finder. I am consulting on ways to improve prompt payment to make it a condition of business being awarded to strategic suppliers. That is very important to SMEs, and I am looking at ways to give them a right to go over the top of key suppliers to the Government to give them a right of recourse.

I say gently to the right hon. Gentleman that both he and I have a proud record from our time working for the coalition Government—he at a much more senior level, running the Department for Business, Innovation and Skills. In line with other Governments, we continue to award contracts to Capita. The House may be interested to know that of the major central Government contracts that have been awarded to Capita, about 20% were awarded under Labour, over half under the coalition Government and 27% under this Government. This issue does not to relate to one party over another.

The reason we do it is that we know outsourcing delivers efficiencies. According to one survey, we receive efficiencies of at least 11%. If we get efficiencies of 11%, that means more money to spend on health, more money to spend on education and more money to spend on core services. That is why the Labour Government did it, why the coalition Government in which the right hon. Gentleman served did it and why this Government continue to use outsourcing.

[Mr Bernard Jenkin (Harwich and North Essex) (Con)]

Does my hon. Friend agree that there is something of a correction going on throughout the sector, as it adjusts to the effects of the Carillion collapse and to the perhaps over-tight margins that some contracts have imposed on providers? I draw his attention to the fact that the Public Administration and Constitutional Affairs Committee is doing an inquiry into the lessons to be learned from the collapse of Carillion. Personally, I take confidence from the fact that the investors have decided to trust Capita with £700 million more of their capital to secure the long-term future of the company.

[Oliver Dowden]

I thank my hon. Friend for his question. He is absolutely right that what we discovered yesterday was that the rights issue is proceeding exactly as planned. In terms of the overall market, I have tried to be clear all along that suppliers should expect a decent rate of return—not an excessive rate of return, but one that allows them to run a profitable business, while ensuring that there are savings for the taxpayer. That is why we use private companies. It is not because of ideology; it is because they deliver savings to the taxpayer, which means more money to be spent on health, education and other public services.

[Christian Matheson (City of Chester) (Lab)]

May I thank you, Mr Speaker, for granting the urgent question and congratulate the right hon. Member for Twickenham (Sir Vince Cable) on securing it?

Capita is one of the strategic suppliers to the Government, providing services of particular strategic importance, yet, as we heard from its boss today, it had no strategy aside from mucking up the management of the dental register, leaving hundreds of dentists to stand idle; failing to maintain the primary care support service in England, which supervises GP and patient records; and failing on the Army recruitment contract, among many other failings. Members have been highlighting those and other failures to the Government over a period of years and will not be surprised at the latest news. I echo the call from the right hon. Member for Twickenham for the Minister to outline what contingency plans he has put in place to deal with a possible default on any one of those contracts.

The Government claim to be monitoring the situation and have a Crown representative in place, but do they even know what they are monitoring if they are not sure about the number of contracts Capita runs? I and other Members have asked for a list of Government contracts undertaken by Capita and have not been provided with one. Do the Government know how many contracts Capita undertakes across central Government and, indeed, across local government? Will they publish a list of all those contracts?

Will the Minister confirm what improvement plans have been agreed with Capita since its string of profit warnings or yesterday’s refinancing? What quality thresholds will be built into Government contracts to ensure that Capita and other privateers reach an acceptable standard of service delivery, particularly in view of their precarious financial situation?

This latest episode in the saga of outsourcing scandals again shows the public that the Government’s commitment to this practice is nothing more than ideological. Despite the danger to public services, along with the treats to Capita’s staff and subcontractors, the Government will not shift from their view that these giant multinational firms should make huge profits from the public purse, until the point when they fold, taking our public services with them. The Government act as though these firms should be allowed to privatise the profit of the public sector, while nationalising the risk to the British public. We need a change in direction now. Will the Minister use this latest episode involving Capita to finally introduce a presumption in favour of in-house provision of public services?

[Oliver Dowden]

I have a great deal of respect for the hon. Gentleman, and he could have done a little better than some of the overblown rhetoric in his contribution. Yesterday’s announcement was entirely in line with market expectations.

The hon. Gentleman asks what is being done in relation to strategy. The strategy has been set out clearly by the new chief executive. It includes a revised divisional structure and executive team to better manage and enhance services and client value, as well as a rights issue, which, as I said, has proceeded as planned and will materially improve the company’s financial stability, thereby reducing its debt, enabling it to invest in core services, allowing it to reduce the pensions deficit, which it has done by £21 million—I hope all Members will welcome that fact—and allowing it to reduce its cost base.

The hon. Gentleman asks what contingency planning the Government are doing. As I have said, we undertake appropriate contingency planning in respect of all our strategic suppliers. I take a close personal interest in that as a Minister, and I know that the Chancellor of the Duchy of Lancaster and Minister for the Cabinet Office takes a similarly close interest in it.

The hon. Gentleman asks about contracts that have been awarded to Capita, so let me give him the numbers. Of the current major central Government contracts that have been awarded to Capita, nine were awarded under Labour, which is 20%, 24 were awarded under the coalition, which is about 53%, and 12 were awarded under the current Conservative Government, which is about 27%. This is not a party issue; all three formations of government have decided to use outsourcing companies.

To conclude, I had thought that the hon. Gentleman would agree with the words of a previous Labour leader and somebody who many regarded as being, at least in some senses, a successful leader. Gordon Brown, hardly a rabid right-winger, said:

“It simply would not have been possible to build or refurbish such a number of schools and hospitals without using the PFI model.”—[Official Report, 14 November 2007; Vol. 467, c. 665.]

That was a sensible Labour Government who were committed to delivering public services. We do not see such sense from the current Labour party, I am afraid.

[Mr Mark Francois (Rayleigh and Wickford) (Con)]

While I agree with the thrust of the Minister’s response, I am afraid I have to tell him that a serious blot on Capita’s record is the Army recruiting contract. Capita does not have much experience in that area and has been underperforming very seriously on the contract for some five years. I told the House in Defence questions yesterday that it is now known universally in the Army as “Crapita”, because of its poor performance on the contract. Will the Minister accept it from me that, although nobody wants to see Capita go bust because of all the jobs that would be lost, equally we cannot have an Army without recruits? Therefore, this is one contract that Capita, honourably, should hand back.

[Mr Speaker]

I must tell the right hon. Gentleman that his second reference to the rather unfortunate nickname of the company concerned has just caused some merriment among school students in the Public Gallery. They clearly found it very funny, as did I, so the right hon. Gentleman may be a celebrity among those students—not to mention, of course, in his constituency and in many other parts of the country.

[Oliver Dowden]

My children are aged six and eight, and on the off chance that they happen to tune into this later, I will make sure that I do not repeat that word, because I would not want to hear it around our breakfast table.

I know about the commitment of my right hon. Friend the Member for Rayleigh and Wickford (Mr Francois) to this issue; he is absolutely right to raise it. We all know that there have been problems with Capita, but I can update him and the House by saying that the MOD and Capita have agreed an improvement plan under their contract. I understand that Capita is looking to deliver on that plan, so I am confident that it is making steps in the right direction, although I do not deny that there have been problems in the past.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

A £701 million rights issue after a £530 million loss, with a scramble to recover reputation after damaging contract bungles, is indeed indicative of a business with no strategy. Given the wide range of public services involved, is the Minister at all worried by the situation? If so, what precautions has he put in place to protect people’s jobs? Does he agree that this highlights a role for the public sector in providing vital public services? Given that he is wedded to the PFI model, will he take the time to look closely at the Scottish Government’s Scottish Futures Trust model, which has saved the Scottish Government £1 billion?

[Oliver Dowden]

I thank the hon. Gentleman for his questions. As I have said, Opposition Members keep trying to characterise this as ideological, but the fact is that Governments of all colours have used outsourcing. Why? Because they know that that can deliver savings. It is just the same as when private companies use outsourcing so that they can focus on their core businesses.

The hon. Gentleman asks whether I take a close interest in this—yes, I take a close interest in all our strategic suppliers. On a weekly basis, I receive updates on the position and on the plans that we have, if necessary, in relation to all our strategic suppliers. However, I restate to the House that Capita’s position is not the same as Carillion’s—nor, indeed, are any of the other strategic suppliers in that position.

[Dr Caroline Johnson (Sleaford and North Hykeham) (Con)]

Does my hon. Friend agree that the Labour party is interested only in the ideological pursuit of renationalisation at any cost? What matters to the public is that they get the best services at the best value to the taxpayer.

[Oliver Dowden]

My hon. Friend’s raises a very important point that is another rebuttal to this idea of ideology. If we want to look at ideology, perhaps the number of PFI contracts signed by a Government would give an indication of that, so let us look at the numbers. How many contracts did Labour sign on average each year? Fifty-five at the peak. How many have this Government signed in the past year? One. If this is about an ideological commitment to the use of the private sector, Labour Members should search their souls in relation to their last Government.

[Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)]

The Minister makes great play of the 11% savings from contracting out, but it is no good making savings if core services are not being delivered well. Will he outline how many of the contracts he is concerned about—he has listed them a couple of times—and will he tell us how many contracts he is discussing with Capita with regard to whether their delivery should be reviewed? It is no good spending taxpayers’ money on a private company if it is not delivering the services that it is paid to deliver.

[Oliver Dowden]

The contracts that each Department agrees with the private sector for the delivery of services are very stringent. Each Department is responsible for ensuring their proper delivery, and if the company is not delivering properly, it will be in breach of the contract and remedies will be available. At the point of re-letting a contract, we look at the overall performance of the company concerned to ensure that it is in a fit state to be able to deliver on its promises. There is a dual responsibility between the individual Departments, which set out the terms, and the Cabinet Office, in which I sit, which has overall responsibility for the supplier market.

[Dr Matthew Offord (Hendon) (Con)]

Barnet Council has a significant contract with Capita. It also has a business continuity planning framework that monitors liquidity and indebtedness. It reviewed the situation twice last year, and again after the recent profit warning, and the company was shown to be far from reaching the relevant threshold for triggering any action, but in the local elections, the Liberal Democrats are using the issue to scaremonger. I urge the Minister not to take advice or direction from someone who undersold Royal Mail by £1 billion and then called the loss “froth”.

[Oliver Dowden]

I thank my hon. Friend for his question. Tempting though it is, I shall resist the urge to comment on the Royal Mail deal, but I refer him again to the— [Interruption.] When the Department was controlled by the Liberal Democrats, I do not think the right hon. Member for Twickenham (Sir Vince Cable) would have taken kindly to a Conservative special adviser getting too heavily involved.

I refer my hon. Friend the Member for Hendon (Dr Offord) to statistics that demonstrate that over half of the contracts that were given to Capita were awarded under the coalition Government, in which the Liberal Democrats played a sterling part. If they want to play politics, I refer them to those statistics.

[Rachel Reeves (Leeds West) (Lab)]

May I push the Minister on contingency planning because I fear that the Government are being a bit complacent about that issue? Since Carillion went bankrupt, hospitals in Sandwell and Liverpool have been mothballed. What confidence does he honestly have that if Capita were to go the same way as Carillion, its contracts would continue to run and these crucial public services would continue to be delivered? The experience of Carillion is that that is not happening.

[Oliver Dowden]

I gently disagree with the hon. Lady, who has a great deal of expertise in this area. Public services have continued to be delivered without interruption. There is a specific question about the PFI contracts in respect of those two hospitals, but I reassure her and other hon. Members, who I know take an interest in this, that we are taking a very close interest in the matter. We are engaging with NHS Improvement and the Department of Health and Social Care to try to resolve this as quickly as possible and ensure that we have a clear plan for the delivery of the hospitals.

[Bob Stewart (Beckenham) (Con)]

Obviously I support outsourcing in principle, but I am really concerned. If Capita is reviewing the way it operates—it has operated abysmally in various spheres, particularly Army recruiting, as my right hon. Friend the Member for Rayleigh and Wickford (Mr Francois) said—are the Government reviewing how they have oversight of these contracts so that we can get more effective feedback and problems can be corrected quicker?

[Oliver Dowden]

I thank my hon. Friend for his question. He is absolutely right to raise the issues that we have had with the Army recruitment contract, but what is happening demonstrates that the Government are engaging with these problems. The MOD and Capita have agreed an improvement plan, which seeks to address some of the significant problems that we have. When these problems arise, we are engaging with the companies concerned to try to deliver improvements.

[Catherine West (Hornsey and Wood Green) (Lab)]

What assessment have the Government made of the impact on apprentices who are employed in Capita’s many workplaces? How many individual apprentices may be affected? Which regions of the UK are particularly exposed? What contingency plans are in place to protect potential losses to the apprenticeship programme, and what will be done to stop these failing business practices? I am fed up with having to listen to poor apprentices in other companies who have lost their roles as a result of failing business practices.

--- Later in debate ---

[Oliver Dowden]

I reassure the hon. Lady that the Chancellor of the Duchy of Lancaster and Minister for the Cabinet Office is taking a very close interest in this and working in respect of all those apprenticeships. At the moment, those apprenticeships are ongoing, but clearly we need to look at how we can manage their future so that young people do not find themselves disadvantaged. I can assure the hon. Lady that this is a top priority for my right hon. Friend.

[Stephen Kerr (Stirling) (Con)]

The Minister says there have been problems with Capita, and while Capita and Carillion are different businesses in different situations, they have something in common: the businesses are both big and complex. What steps are the Government taking to involve more small and medium-sized businesses in the delivery of public services?

[Oliver Dowden]

My hon. Friend raises a very important point. It is right on two levels that we have a diverse supply market: first, because the more suppliers we have, the less we are at risk from the loss of any one supplier; and, secondly, because small and medium-sized enterprises are the backbone of our economy locally and nationally, creating 16 million jobs, and I am determined to ensure they get their fair share of such contracts. That was why I announced a range of measures over Easter, including providing subcontractors with a right of access to buying authorities in order to report poor practices. It was also why the Prime Minister wrote to every Secretary of State requesting that they appoint an SME champion. I want the message to go out to all SMEs—I spent a lot of time over Easter meeting small businesses and communicating this—that they can bid for and win Government contracts. Go on to Contracts Finder, find them, and bid for them!

[Kelvin Hopkins (Luton North) (Ind)]

In my two decades in the House, I have opposed PFI schemes root and branch from the beginning. It seems that the number of PFI agreements has dwindled to virtually zero, so it looks like the Government agree with me now. A number of public authorities are now insourcing and making financial gains as a result. Will the Government encourage that process, which would save public money? Will they also not hand out lucrative public contracts to Capita to help it out of its present circumstances?

[Oliver Dowden]

I shall resist the suggestions of Front-Bench colleagues; I do not think I will ever convince the hon. Gentleman to cross the Floor, despite his warm words.

We reviewed PFIs and introduced the new private finance 2 contracts, which removed many of the excesses we saw under the last Government. The hon. Gentleman asks about the rewarding of new contracts. Since the statement in January, as I said, no contracts have been awarded to Capita by central Government. Two have been awarded by the wider public sector—by the BBC and Northern Ireland authorities.

[Bob Blackman (Harrow East) (Con)]

My hon. Friend will recall that Capita developed from the public sector in the first place. Does he agree that the use of outsourcing not only controls costs and gives gains to the public, but provides certainty over the standards of service provided to the public? If an outsourced company fails to deliver to those standards, the contract can be recalled and given to an alternative provider.

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[Oliver Dowden]

As ever, my hon. Friend and neighbour is absolutely correct. That happens regularly, and it is exactly why private companies all use outsourcing to provide services such as cleaning and site security—because they can use specialist providers and because that delivers savings. He talks about how the Capita model arose. I remind Labour Members who are getting overexcited that Capita was founded by Sir Rod Aldridge, who was a major donor to not the Conservative party, but the Labour party.

[John Spellar (Warley) (Lab)]

May I associate myself with the comments about Army recruitment made by the right hon. Member for Rayleigh and Wickford (Mr Francois) and the hon. Member for Beckenham (Bob Stewart)? Does not the Minister accept that Capita is only the latest outsourcing company to be in trouble? With some, including probation, hospital and rail companies, having to hand back contracts and the growing crisis in the over-leveraged, offshored care industry, does he not question whether there are not actually deep systemic problems with the Government’s dogma-driven privatisation model?

[Oliver Dowden]

I simply fail to understand how Labour Members can say that this is dogma-driven when the last Labour Government awarded 55 PFI contracts a year and one was awarded in the last year. Some 20% of the contracts awarded to Capita were awarded by the Labour party. This is not about ideology; it is about what works. Outsourcing delivers savings, which means that we have more to invest in the public sector—more in our schools; more in our hospitals.

[Michael Tomlinson (Mid Dorset and North Poole) (Con)]

May I give the Minister an opportunity to repeat and reinforce his message about small businesses and the importance of their getting more involved in the delivery of public services? Will he encourage businesses in my constituency and the wider Dorset region to bid for contracts?

[Oliver Dowden]

My hon. Friend is absolutely right. Small businesses should be going out there and bidding for Government contracts. I know that his constituency has much expertise in the aerospace sector, and I announced further measures over Easter to help such small businesses. I wrote to all our strategic suppliers asking that they adhere to the prompt payment code, and I am requiring suppliers on large contracts to provide their subcontracting data. They can be under no illusion that the Government are watching closely to ensure that in terms of contracts from government itself and subcontracting, SMEs get their fair share.

[Wayne David (Caerphilly) (Lab)]

I welcome the Government’s recognition that Capita is not delivering on its contract for Army recruitment, but rather than Capita simply introducing an improvement plan, would it not be better for the Government to consider bringing contracts back in-house so that Army recruitment is conducted by the Army? That is what the Army wants.

[Oliver Dowden]

As the hon. Gentleman has acknowledged, I have answered the question about the Army recruitment contract, and I shall not repeat my answer, but I would say that we are not driven by an ideological approach. If services can be delivered better in-house, of course they can be delivered in-house, but in the majority of cases, for contracts such as cleaning and security, both the private and public sectors have found that they get cheaper services that are just as good quality when they outsource. That is the right decision to make.

[Mike Amesbury (Weaver Vale) (Lab)]

Capita employs hundreds of people in my constituency at a place called Preston Brook. What discussions have the Government had with recognised unions, such as the Communication Workers Union, about the job and pension security of those workers?

[Oliver Dowden]

The hon. Gentleman raises a very important point. I can reassure his constituents, as I have done repeatedly at the Dispatch Box today, that yesterday’s announcement was in line with expectations. Capita is not in a similar position to Carillion. I can also reassure them that, as a result of the rights issue yesterday, a further £21 million has been paid down into the pension fund, meaning that their pensions are more secure as a result of the announcement on Monday.

[Stephen Lloyd (Eastbourne) (LD)]

The Minister has spoken several times in glowing terms about the importance of the SME sector. One of the issues that came out of Carillion’s collapse was the deplorable reality that it often did not pay its SMEs their subs for 120 days, and sometimes more. That is the way to destroy the SME sector. Given that this is taxpayers’ money, will he give me a guarantee that that is not happening at Capita and that people are getting paid within a fair and reasonable time?

[Oliver Dowden]

The hon. Gentleman is right to raise the issue of prompt payment, and I know that various Select Committees are looking into the Carillion case. My right hon. Friend the Secretary of State for Business, Energy and Industrial Strategy is sitting next to me, and the Chancellor announced in the spring statement a call for evidence on the prompt payment code, which governs such payments. The Government pay about 96% of our contractors within 30 days. As I said, I have written, post Carillion, to all our strategic suppliers to re-emphasise the importance of adhering to the code. We are consulting on how to exclude suppliers if they do not do so.

Oral Answers to Questions

Oliver Dowden Excerpts

Wednesday 28th March 2018 Commons Chamber

[Mike Wood (Dudley South) (Con)]

11. What steps his Department is taking to support the use of small businesses in Government procurement.

[The Parliamentary Secretary, Cabinet Office (Oliver Dowden)]

Small businesses are the engine of our economy and we are determined that they should get their fair share of Government contracts, which is why we have set an ambitious aspiration for a third of procurement spend to be with small and medium-sized enterprises by 2022. We will shortly announce further measures to help us to achieve that target.

[Rachel Maclean]

We understand that High Speed 2 will bring vast benefits to our economy in the west midlands, including £4 billion-worth of economic growth and 50,000 extra jobs, but small businesses in Redditch say to me that they are not sure how to bid for the contracts. What advice can the Minister give them?

[Oliver Dowden]

My hon. Friend raises an important point. Small businesses throughout the country create millions of jobs and it is important that they are able to access large contracts such as HS2. Public sector contracts are advertised on the Contracts Finder website, which is free and easy to use, and bidders can request information as they need it. I encourage businesses in my hon. Friend’s constituency and elsewhere to take advantage.

[Stephen Metcalfe]

As my hon. Friend will know, small businesses are the backbone of the UK economy. It is the Government’s responsibility to make sure that they can compete equally for public sector contracts. Will my hon. Friend tell the House what he is doing to level the playing field?

[Oliver Dowden]

We are constantly looking into new ways to reduce the barriers to small businesses working with the public sector, which is why we have already scrapped complex pre-qualification questionnaires for low-value contracts. We require public sector buyers to split contracts into accessible chunks for small businesses, and I am pleased to confirm that we will reopen the G-Cloud to new suppliers, which will further help small businesses.

[Mr Speaker]

We are very short of time. I sometimes think we have time for the questions but not always for the answers. We need to be pretty dextrous about this.

[Mike Wood]

Small businesses in Dudley South have shown that they can compete with the biggest names in the world. Will the Minister help them to compete for Government contracts by publishing all contracts worth more than £10,000 on the Contracts Finder website?

[Oliver Dowden]

My hon. Friend is absolutely right, and all contracts worth more than £10,000 are published on the Contracts Finder website. Indeed, more than 25,000 organisations are currently registered with Contracts Finder, of which 64% are small and medium-sized enterprises.

[Helen Goodman (Bishop Auckland) (Lab)]

Public procurement was meant to be one of the Brexit dividends, but it is not going very well with the Passport Office. Will the Minister tell us specifically what will change?

[Oliver Dowden]

I have to say to the hon. Lady that, as we leave Europe, it is important that we remain an open economy, and I have every confidence in the way in which that procurement was conducted. We should be sending a signal that, just as we expect foreign businesses to be able to bid for contracts here, we have an open system in this country.

[Derek Twigg (Halton) (Lab)]

I hear that the problem for small businesses is that they are often denied the chance to bid for work, because they are told by various people that it is down to Government procurement rules, so local businesses, in particular, are kept out. What more is the Minister doing to ensure that local businesses get local contracts?

[Oliver Dowden]

It is very important that local businesses can get local contracts. The first thing that the Cabinet Office is doing is ensuring that as we re-let contracts, we split them into small amounts so that they are easier for small businesses to bid for, and we have extensive engagement before we let the contract to ensure that as wide a range of businesses as possible can access it.

[Kerry McCarthy (Bristol East) (Lab)]

In Brazil, 30% of food for school meals has to be sourced from local or family farms. France has just introduced a similar law on local, organic provision in public procurement. Why can we not do it here?

[Oliver Dowden]

I know the hon. Lady’s commitment to this cause. As a result of the changes made under this Government, we allow contracts to take into account factors such as the local sourcing of food, as long as it is provided to all businesses.

[Mr Gary Streeter (South West Devon) (Con)]

T1. If he will make a statement on his departmental responsibilities.

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[Mr Streeter]

We live in a London-centric country. Can my right hon. Friend update the House on what he is doing to ensure that Government Departments are relocated to other parts of the United Kingdom, including, of course, the great south-west?

[The Parliamentary Secretary, Cabinet Office (Oliver Dowden)]

This Government are committed to locating economic activity outside London and the south-east. Since 2016, 12 new public bodies have been located outside London, and indeed in the south-west to which my hon. Friend refers. Her Majesty’s Revenue and Customs has set up a regional centre in Bristol, which employs 1,600 people.

[Marsha De Cordova (Battersea) (Lab)]

T4. An RNIB report on the general election of 2017 shockingly found that one in four blind and partially sighted people were unable to vote independently and in secret. With just five weeks to go until the upcoming local elections, what steps are the Government taking to ensure that blind and partially sighted people can vote independently and in secret?

[Simon Hoare (North Dorset) (Con)]

T2. Perhaps an apt question for Spy Wednesday is: what more can be done to ensure cyber-security across our public sector?

[Oliver Dowden]

My hon. Friend raises a very important point. Cyber-security is a major priority for the whole of this Government, and our world-leading national cyber security strategy is supported by almost £2 billion of investment. It sets out measures to ensure that the public sector, and the wider economy, is cyber-secure.

[Layla Moran (Oxford West and Abingdon) (LD)]

T5. Yesterday, the Government called time on business in the House two hours early. Meanwhile, important Bills such as the draft Public Service Ombudsman Bill languishes in purgatory. My constituents are desperate for this Bill to be debated as it pertains to the AEA Technology pensions debacle. Will the Minister please push for this Bill to be sent to the Floor of the House?

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[Kerry McCarthy (Bristol East) (Lab)]

T8. Will the Minister look at extending the balanced scorecard approach of public procurement to schools and hospitals?

[Oliver Dowden]

As the hon. Lady will be aware, we have invested in the balanced scorecard approach. Of course, we will look at extending it to whatever procurements are possible.

[Alex Norris (Nottingham North) (Lab/Co-op)]

Ministers talk a lot about voter fraud, even though there were only two convictions in 2016. Ministers do not talk about the 6 million people who are not on the electoral register. May I have a commitment from Ministers that, when it comes to strengthening our democracy, they will prioritise the many, not the few?

Government Property Agency

Oliver Dowden Excerpts

Wednesday 28th March 2018 Written Statements

[The Parliamentary Secretary, Cabinet Office (Oliver Dowden)]

I wish to update the House on the establishment of the Government Property Agency as an Executive Agency of the Cabinet Office.

Government are delivering a modern, innovative public estate strategy that drives a step-change in our property ambitions—broadening from a primary focus on efficiencies and savings to one that uses assets as an enabler to deliver our priorities for excellent public services; economic growth; and more land for housing across the UK.

The previous Chancellor set out some of that ambition at the March 2015 Budget where he announced that Government would implement a new commercially driven approach to land and property asset management across the central Government estate and that it would create a new central body which would own and manage relevant property assets.

I announce today a significant step forward in creating a modern, effective and efficient civil service fit for the 21st Century, positioning property as a strategic enabler of wider civil service transformation, through the creation of a Government Property Agency.

The agency will be a new executive agency of the Cabinet Office from 1 April 2018 and will provide the centralised ownership, control and delivery infrastructure needed to unlock benefits across organisational boundaries. It further positions Government to deliver workforce change and wider business transformation, delivering efficiencies and releasing land and property for productive use, including building new homes.

The assets in scope to transfer to the agency at this stage are general purpose assets (offices, warehouse and depots), plus non-specialist science assets. Specialist assets such as courts, prisons and specialist science assets will remain on Departments’ balance sheets and the model also excludes devolved administrations, local governments, schools, NHS clinical estates, HCA regeneration assets, MOD estate and overseas estate.

The Government Property Agency has been running in shadow form since January 2017, working with a small number of Departments to test structures and processes before launch in April 2018. The agency will initially deliver the Government Hubs programme with HM Revenue and Customs and manage non-specialist properties for Cabinet Office and Department of Business, Energy and Industrial Strategy—before expanding its scope to the non-specialist properties of other Government Departments in subsequent years.

Creating the agency will bring benefits to Departments and their arms’ length bodies through more effective management of the assets they occupy and own. It will establish a single agency providing the basis for a joined-up approach to the management of Government property assets. And the taxpayer will also benefit from reduced cost and improved efficiency of the estate.

[HCWS599]

State of the Estate

Oliver Dowden Excerpts

Wednesday 28th March 2018 Written Statements

[The Parliamentary Secretary, Cabinet Office (Oliver Dowden)]

I have today laid before Parliament, pursuant to Section 86 of the Climate Change Act 2008, the “State of the Estate in 2016-17”. This annual report describes the efficiency and sustainability of the Government’s Civil Estate and records the progress that Government have made during the financial year 2016-17. Since 2010 we have delivered savings of over one billion pounds in annual operating costs and a 25% reduction in the size of the estate (2.8 million square metres). We have also made significant progress on other key areas including achieving a 33% reduction in emissions by the end of 2016-17, which exceeds the 2020 target of 32%.

Looking ahead, our aim is to ensure that our estate not only delivers value for the taxpayer but also acts as an enabler to the delivery of the Government’s wider commitments—from releasing surplus Government land to building new homes, to delivering public services that are more accessible and responsive to citizens’ needs and to ensure our estate showcases best practice in mobile technology and workplace design.

[HCWS598]

Oral Answers to Questions

Oliver Dowden Excerpts

Wednesday 21st February 2018 Commons Chamber

[Kerry McCarthy (Bristol East) (Lab)]

4. What recent discussions he has had with Cabinet colleagues on ethical procurement.

[The Parliamentary Secretary, Cabinet Office (Oliver Dowden)]

The Government are committed to ethical procurement. The Public Services (Social Value) Act 2012 requires commissioners to consider the social benefits of their approaches to procurement, and the industrial strategy requires Departments to consider wider social and economic factors in the design of major Government contracts.

[Kerry McCarthy]

Another recent report has commented on the link between ultra-processed food and cancer, rising levels of obesity, and the fact that only one in four adults is eating five a day. What more can the Government do through their public procurement processes to encourage healthy, sustainable eating, and to source it from British producers?

[Oliver Dowden]

The hon. Lady has raised an important point. As I have said, the Public Services (Social Value) Act 2012 enables procurers to take those wider factors into account. We are also encouraging the adoption of a so-called balanced scorecard approach whereby, in the process of procurement, we consider those wider factors. We have rolled that out for all contracts worth more than £10 million, and have extended it to the Crown Commercial Service framework for facilities management.

[Michael Fabricant (Lichfield) (Con)]

What additional flexibility in public procurement will be yielded by Brexit?

[Oliver Dowden]

One of the advantages of Brexit is that it will provide a wide range of opportunities to tailor our procurement rules to the needs of this country. Once we have left Europe, we will be considering exactly those measures.

[Thangam Debbonaire (Bristol West) (Lab)]

What certainty does the Minister have that there is no direct or indirect gender discrimination anywhere in the Government’s supply chain?

[Oliver Dowden]

In October last year, the Government produced a code of conduct relating to Government procurement which covered precisely those points.

[Chris Davies (Brecon and Radnorshire) (Con)]

5. What steps his Department is taking to promote Government procurement from small and medium-sized businesses.

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[The Parliamentary Secretary, Cabinet Office (Oliver Dowden)]

The Government are committed to moving activities away from London and the south-east. There is a presumption that all new non-departmental public bodies should be outside London, so we have created Government hubs across the UK, including in Edinburgh and Glasgow. My hon. Friend makes a marvellous case for having more such opportunities in Scotland.

[Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)]

T5. Dounreay in my constituency is being decommissioned, and it is crucial that both levels of government should work in harmony to ensure future employment for the people of my constituency. Canada and Australia typify joint working between levels of government. Will the Minister work very hard indeed to ensure that the Scottish Government and the UK Government work together to allay the fears of my constituents and to provide future employment?

[Mark Pawsey (Rugby) (Con)]

T4. Too few of our small businesses apply to sell their goods to Government because they are worried about the bureaucracy involved. What reassurance can the Minister give them and, specifically, what feedback is available to them when they do so?

[Oliver Dowden]

My hon. Friend makes an important point. Small businesses are the engine of our economy, and we are committed to supporting them in public procurement. That is why we have already streamlined our procurement processes to assist small businesses by, for example, abolishing complex questionnaires. Specifically in relation to too much bureaucracy, businesses can report such practices to the mystery shopper service.

[Patrick Grady (Glasgow North) (SNP)]

T6. On what date were Government officials first instructed to work on draft amendments to clause 11 of the European Union (Withdrawal) Bill?

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[Alison Thewliss (Glasgow Central) (SNP)]

My colleagues in Edinburgh will be voting today to scrap the public sector pay cap and give a 3% pay rise to those earning under £36,000. When will public sector workers in England see a similar rise?

[Oliver Dowden]

Public sector workers are among the most talented and hard-working people in our society, and they should be fairly rewarded. In respect of the Cabinet Office, the Chancellor’s Budget statement confirmed that we are moving away from the 1% average public sector pay award, and proposals will be issued later this year.

[Mr Bernard Jenkin (Harwich and North Essex) (Con)]

I wish my right hon. Friend every success in his forthcoming meeting with the Scottish and Welsh Governments this week. Will he bear in mind that he is being compromising and open, and will he invite them to be the same?