Making Britain the Best Place to Grow Up and Grow Old
Sajid Javid Excerpts(2 years, 7 months ago)
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The Secretary of State for Health and Social Care (Sajid Javid)
It is an honour to close this debate on the Loyal Address. In this platinum jubilee year, let me extend my thanks to Her Majesty the Queen for her years of dedicated service.
I also thank all right hon. and hon. Members who have taken part, but, I have to say, I am disappointed in the shadow Health Secretary, the hon. Member for Ilford North (Wes Streeting). He has taken this once again as an opportunity to talk down Britain, as he so often does, and has chosen to use this debate as a naked leadership pitch for his own party. He talked about leadership bids in his speech because he has no ideas at all about how to improve the society for British people. He knows that both of us had to fight to get our foot in the door. He knows that our chances to succeed come from this country’s world-class public services, yet he stands there and has the audacity to attack my right hon. Friend the Secretary of State for Education, who came to this country as an 11-year-old immigrant and rose to the position that he has today—by the way, he could rise to that position only in the Conservative party.
I speak with feeling about this country. For my family, coming to Britain was a choice, too. They came here for freedom, security, opportunity and prosperity. They came here because they believed that Britain was the best place in the world in which to grow up and grow old. They were right then and they are right today. Public services have been a lifeline for me and my family—the teachers who made my career possible, the police officers who kept me and my family safe, and the NHS that cared for my father in his dying days. This Queen’s Speech backs our public services. It invests in them and it reforms them to secure the future of Britain. Unlike the shadow Secretary of State, I have always been an optimist about Britain’s future.
Wera Hobhouse (Bath) (LD)
Twenty-hour ambulance waiting time—is that world beating?
Sajid Javid
Of course it is not. I will come on to that in a moment. The hon. Lady knows full well why the NHS is facing its most challenging time in history.
Being the best place in which to grow up and grow old relies on keeping people safe, including from disease. We rose to the challenges of the pandemic. Brexit gave us the mindset to license and deploy a vaccine against covid-19 quicker than any other country. The phenomenal NHS got jabs into every part of the UK, and it is the wisdom of the British people that has meant that we have one of the highest vaccination rates anywhere in the world. We created a juggernaut of a testing and surveillance system. We bought more antivirals per head than any other country in Europe, and we got it right on omicron, with the most successful booster programme in Europe. As a result of all that, we were the first country in Europe to remove all restrictions. Had we listened to the Labour party, we would have been shackled to the EU on vaccines, and our schools would have been shuttered for even longer, contrary to what the hon. Member for Houghton and Sunderland South (Bridget Phillipson) said. Instead, because this Government got the big calls right, we are leading the world when it comes to living with covid.
From clinics to classrooms, the pandemic showed the wealth of our skills. The skills mission is a job for the whole of Government. In his opening speech, my right hon. Friend the Secretary of State for Education outlined our ambitions for the new Schools Bill to deliver a stronger schools system that works for every child, as talked about today by my hon. Friend the Member for Ruislip, Northwood and Pinner (David Simmonds) when he spoke about academy trusts, and by my hon. Friend the Member for Truro and Falmouth (Cherilyn Mackrory) when she talked about the importance of early years.
We are also delivering a Higher Education (Freedom of Speech) Bill, which will reverse the chilling effect of no platforming in our world-class institutions, while our higher education reform Bill promises to bring about a fairer and more sustainable future. I listened carefully when my hon. Friend the Member for North West Leicestershire (Andrew Bridgen) talked passionately about putting our children and our young people first.
A skills-rich economy is about more than just the elite institutions. I am the product of Filton Technical College. It ignited my desire to go to university and helped me get to where I am today. This is a Government who treat further education colleges with the seriousness that they deserve. When I was Chancellor I was proud to put an additional £400 million into further education in this country. This is a great country in which to grow up and grow old, and a great country in which to stay skilled, as my right hon. Friend the Member for Bexleyheath and Crayford (Sir David Evennett) said earlier in the debate.
On healthcare, this Government passionately believe in the NHS and its founding principles, in a world-class healthcare system that is free at the point of access for everyone. Funding from the levy, which the Labour party voted against, on top of the historic long-term NHS settlement that was announced in 2018, means that the NHS resource budget in England will increase to £162.6 billion by 2024-25. That is the highest budget that the NHS has ever had, and it includes an additional £8 billion over the next three years to tackle those covid backlogs. In a fast-changing world, with an ageing population, we need to embrace new ways of thinking. A number of my hon. Friends referred to the investment that we are making, including my hon. Friend the Member for Bosworth (Dr Evans). I also listened carefully, when my hon. Friend the Member for North West Norfolk (James Wild) was talking about NHS investment. He made a powerful case for it.
We have set out our plans to tackle the covid-19 backlogs, we have legislated for a new Health and Care Act, and we have published an integration White Paper. We have an upcoming digital and data strategy, and we are setting out a new 10-year cancer plan. I cannot see him in the Chamber now, but the hon. Member for Westmorland and Lonsdale (Tim Farron) talked about the importance of cancer care. We are also setting out a new 10-year plan to improve mental health.
A number of Members rightly spoke of the importance of mental health, including my hon. Friend the Member for Aylesbury (Rob Butler), who speaks with passion on this subject, especially when it comes to the mental health of children. We will soon publish a health disparities White Paper, which I hope will be welcomed by the right hon. Member for Kingston upon Hull North (Dame Diana Johnson), who rightly spoke of the importance of levelling up, and we will also soon publish the outcome of the Messenger review of health and social care leadership. We are bringing the Mental Health Act 1983 into the 21st century—the Queen’s Speech referred to draft legislation for that purpose—ensuring that those experiencing a mental health crisis are treated as people, not patients.
As I have said, a number of Members spoke passionately about mental health—notably the hon. Member for Birmingham, Erdington (Mrs Hamilton), whom I welcome to her place in the Chamber. I agreed with one thing that the hon. Member for Ilford North said earlier: all Members, on both sides of the House, miss her predecessor, Jack Dromey, very much, but I know that had he listened to the hon. Lady’s speech he would have been very proud of what she said. She spoke with passion and pride about her community, and I know that she served for many years—for over two decades—In the NHS. When she speaks about mental health, she speaks with experience, and I know that she will have much of value to say in the House in the years ahead.
Many other colleagues made important contributions about the NHS. My hon. Friend the Member for Sleaford and North Hykeham (Dr Johnson) talked about the investment in community diagnostic centres. The hon. Member for Bradford South (Judith Cummins) and my hon. Friend the Member for North Devon (Selaine Saxby) talked about the importance of dentistry and the need to maintain investment.
At the heart of our strategy for the NHS are prevention, personalisation, performance and people. Prevention means focusing much more on the biggest killers: tobacco, obesity and alcohol. My hon. Friend the Member for Stoke-on-Trent Central (Jo Gideon) spoke of the importance of continuing to tackle obesity. Personalisation means making use, where we can, of community services, something that I know my hon. Friend the Member for Devizes (Danny Kruger) would welcome; and when it comes to people, there are more doctors and nurses working in the NHS today than ever before. We are on track to deliver 50,000 more nurses by the end of this Parliament, and we have a record number of medical students in England. The fact is that the Opposition have no plans for the NHS. They voted against our plan to secure resources for the NHS, and they have no idea how to meet the challenges of the future.
We are also transforming the provision of adult social care. We are investing an additional £5.4 billion over the next three years; we are introducing a more generous means-testing system by more than quadrupling the upper savings threshold to £100,000; we are protecting more people from the lottery of catastrophic care costs; and we are putting half a billion pounds behind our social care workforce. I hope the hon. Member for St Helens South and Whiston (Ms Rimmer) will welcome that. She talked about adult social care, and I hope that she and others will recognise that this is record investment. These changes matter, because whether we are growing old or a working-age adult, social care is there for all of us. My hon. Friend the Member for High Peak (Robert Largan) talked about that as well.
Sajid Javid
The Under-Secretary, my hon. Friend the Member for Lewes (Maria Caulfield), met some of the victims of that today. There are plans that we are closely looking at and when we are ready we will come to this House with them.
My hon. Friends the Members for Redcar (Jacob Young) and for Ynys Môn (Virginia Crosbie) praised the energy security Bill, and they were right to do so—it is a very important piece of legislation that this country has long needed. My hon. Friend the Member for Bishop Auckland (Dehenna Davison) rightly welcomed the investment in increased police numbers. I listened carefully to what the hon. Member for East Kilbride, Strathaven and Lesmahagow (Dr Cameron) said about the importance of happiness. I agree, but I assure her that the Government Benches are full of happy Ministers, so I do not think we need any more.
Her Majesty’s most noble speech sets out a positive vision of freedom, security, opportunity and prosperity. It matches the ideals that brought my family to this country: that this is, and will continue to be, the best country in the world to grow up and grow old in. Unlike Labour, we are optimists about Britain’s future. The choice for the country is clear: between a Government with an ambitious vision for the country and an Opposition without a plan. We will provide the leadership that this country needs. I commend this Queen’s Speech to the House.
Ordered, That the debate be now adjourned.—(Scott Mann.)
Debate to be resumed tomorrow.
Oral Answers to Questions
Sajid Javid Excerpts(8 years, 5 months ago)
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Peter Aldous (Waveney) (Con)
1. What steps he is taking to support innovation in industry.
The Secretary of State for Business, Innovation and Skills and President of the Board of Trade (Sajid Javid)
We want to make the UK the best place in Europe to innovate, to patent new ideas and to grow new businesses. That is why we are creating a supportive business environment—for example, with research and development tax credits and through Innovate UK.
Peter Aldous
The UK’s position as the world leader in offshore renewables is underpinned by industry and academics from across the European Union working together on innovation projects, and by funding from the European Investment Bank and other European or collaborative research and development funds. Can the Secretary of State give me an assurance that our No.1 position will not be put at risk by Brexit?
Sajid Javid
The UK is the world’s largest offshore wind market today, and it will still be the largest by the end of the decade, with 10 GW expected to be installed. Despite the decision to leave the European Union, I am confident that we can still co-operate on science and research, as many countries outside the European Union do with their EU counterparts. I believe that that will ensure that this sector remains very strong.
Daniel Zeichner (Cambridge) (Lab)
Innovation and research are inextricably linked. Yesterday, when I asked the Prime Minister about the impact on our research institutions of the decision to leave the European Union, he assured me that existing contracts would be honoured. However, researchers are applying for funding on a daily basis. What support can be put in place to deal with the uncertainty that exists today, tomorrow and next week?
Sajid Javid
As the hon. Gentleman knows, there will be no change immediately; the current structures will stay in place for at least two years. Of course companies are concerned about what will replace them, and that is exactly what we are working on now with many researchers, businesses and others. The Minister for Universities and Science is taking this very seriously and he has already been speaking to a number of stakeholders.
Kevin Hollinrake (Thirsk and Malton) (Con)
A vital component of innovation in business is a superfast broadband connection. Would the Secretary of State consider extending the excellent satellite voucher scheme to allow the pooling of vouchers to enable the establishment of community schemes such as fixed-point wireless?
Sajid Javid
I will certainly discuss that with the Secretary of State for Culture, Media and Sport. I was pleased to have introduced that scheme in my previous role as Culture Secretary, and it has been making progress. My hon. Friend would perhaps also like to know that infrastructure will be absolutely key to the new national innovation plan, which will be published shortly.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
Mr Speaker, you will know well, because you were with me, that I met representatives of the textiles industry and the university in my constituency last Friday. They are absolutely appalled by the decision to leave the European Union. Surely we need more than the rather calm words we have heard this morning. There should be an emergency package to deal with the real concerns of the great exporters and innovators of this country.
Sajid Javid
Of course there will be a number of companies, whether in textiles or other sectors, that will have concerns, particularly about the short term. That is why my colleagues and I are already in touch with a number of companies and businesses around the country. This afternoon, for example, I will be holding a round table with businesses representing every sector of the economy, and we will be following up on precisely those issues.
Mr Philip Hollobone (Kettering) (Con)
The innovation that British industry now needs is a range of innovative trade deals with the world’s super-economies outside the European Union, and we need to act on this now rather than waiting to start until after our exit. What steps is my right hon. Friend taking to supercharge the trade unit within his Department to get crack trade officials working on these agreements straightaway?
Sajid Javid
My hon. Friend is absolutely right. With this decision, there are of course short-term challenges, but he highlights the fact that there are also medium and long-term opportunities, one of which is trade. The Department had already thought about that in case the decision went in favour of Brexit. I am pleased that we did that preparatory work and we will now be putting it to use.
Hannah Bardell (Livingston) (SNP)
Scotland, which voted to remain in the European Union, has secured around £120 million from Horizon 2020, the biggest EU research and innovation programme. Participation in EU research and innovation programmes has enhanced our scientific and business reputation, so what are the Minister and his Department going to do to ensure that similar funding and support options are available post-Brexit?
Sajid Javid
The hon. Lady may be interested to know that several countries that are not in the European Union are part of research and science collaboration programmes—Israel, for example—so if we choose to do so, it is perfectly possible to continue working with our EU partners on science and research.
Caroline Ansell (Eastbourne) (Con)
2. What steps he is taking to tackle late payment of suppliers by businesses.
The Secretary of State for Business, Innovation and Skills and President of the Board of Trade (Sajid Javid)
I am implementing a package of measures to support a cultural change to tackle late payment, including the small business commissioner, the duty for large businesses to report on payment practices, and support for the voluntary prompt payment code.
Caroline Ansell
I thank the Secretary of State for his answer and welcome his work in this area. In addition to late payment, there is the issue of lengthy-term payment. For example, an SME in my constituency is negotiating with a multinational company, which presents an excellent opportunity. However, the terms and conditions of the proposed payment schedule would mean a 98-day wait for payment on a £3 million project, which is something of a disincentive and, indeed, a risk. I recognise and welcome the fact that the market is opening up to SMEs, but does my right hon. Friend agree that we need to keep working to inspire a more level playing field across all aspects of business practice if SMEs are truly to compete?
Sajid Javid
I absolutely agree with my hon. Friend. The reporting requirements that I mentioned will give small businesses the information that they need to make more informed decisions, to negotiate fairer terms and to encourage other companies to improve payment practices. We take this very seriously in the Department and we are determined to change this kind of bad practice.
Andrew Gwynne (Denton and Reddish) (Lab)
But one of the worst performers regarding late payments to small and medium-sized enterprises is the public sector. What is the Secretary of State doing to ensure that Government Departments, agencies and local government promptly pay the small businesses that they use?
Sajid Javid
The hon. Gentleman will be pleased to hear that while that was the case back in 2010, when payment practices throughout the public sector were appalling, there has been a significant improvement throughout central Government and beyond since then. At my Department, for example, we take great pride in paying almost all invoices within seven days.
Bill Esterson (Sefton Central) (Lab)
As the Secretary of State knows, we welcome the move to set up a small business commissioner to help with late payment, but the proposals are modest. Will he assure the many small businesses that will be dramatically affected by any downturn resulting from Brexit that he will put additional support for them in the supply chain to deal with the consequences of any of their customers delaying payment to deal with the problems of Brexit?
Sajid Javid
I assure the hon. Gentleman that the proposals are not modest. The small business commissioner will have significant powers and the ability to help, including by providing general advice and direct services for the smallest of businesses. The commissioner will also be able to consider complaints and to take super-complaints from trade bodies.
Chris White (Warwick and Leamington) (Con)
3. What recent steps he has taken to create the midlands engine.
The Secretary of State for Business, Innovation and Skills and President of the Board of Trade (Sajid Javid)
I continue to promote the midlands engine, which could add an extra £34 billion to the local economy by 2030 and create 300,000 new jobs. I am pleased that Sir John Peace has been appointed chair of Midlands Connect to drive productivity and growth across the whole of the midlands region.
Chris White
Whether through energy providers, video games companies or manufacturers, Warwick and Leamington’s local economy is a great contributor to the region’s prosperity. What measures are being implemented to build on such successes and to transform the wider midlands engine from concept to reality?
Sajid Javid
I recall fondly visiting video games companies with my hon. Friend, who does a great deal to help local businesses, including by hosting a business forum last Friday. The midlands engine is already delivering. For example, we have a £5 million trade and investment package, £60 million for research, and a £5 million award for Midlands Connect. I am determined to do more.
Liz Kendall (Leicester West) (Lab)
The result of last week’s referendum shows that there is deep discontent in many of our market towns and coastal areas, where people feel left out and left behind because they have not seen the benefits of economic growth. What steps will the Secretary of State take to ensure that the devolution agenda increases jobs, skills and infrastructure investment in some of these peripheral economies, not just in our great metropolitan cities?
Sajid Javid
The hon. Lady will know that, since 2010, we have seen considerable growth in every single region of the UK, including in the midlands. With our focus on the midlands engine, we want to see even more. She is right to highlight the importance of devolution. In my Department, for example, the devolution of skills will make a big difference.
Ian Austin (Dudley North) (Lab)
One of the best ways of bringing in new industries and new jobs to replace the ones that we have lost in the west midlands over the past few decades would be to back Dudley’s exciting plans for an institute of technology, building on the brilliant work that is going on at Dudley Advance. Earlier this year, we were delighted to welcome a visit by the Minister for Skills, and I think that he was very impressed with what was going on. Will the Secretary of State meet a delegation from Dudley to hear about these plans and to discuss them with us in detail?
Robert Jenrick (Newark) (Con)
7. Before the events of last week, I was delighted to hear that my constituent, Sir John Peace, was appointed head of the midlands engine project. Sir John is the founder of Experian, one of the midlands’ key financial service companies, and the chairman of Burberry. Will my right hon. Friend reassure me that it is exactly people like Sir John who will be in his thoughts and working with the Department over the summer to ensure that the midlands economy is prepared for Brexit over the next few weeks and months?
Sajid Javid
My hon. Friend is absolutely right and makes a very powerful point. The midlands is doing well, but it can do better. Trade and investment will be key. I plan to lead the first midlands-only trade mission abroad—to north America in this case—in September, and I would be honoured if companies from his constituency joined me.
Martin Docherty-Hughes (West Dunbartonshire) (SNP)
4. What assessment he has made of the effect of the case of BHS on his policy on regulating insolvency.
Diana Johnson (Kingston upon Hull North) (Lab)
11. What his plans are for the future of the Land Registry.
The Secretary of State for Business, Innovation and Skills and President of the Board of Trade (Sajid Javid)
We recently consulted on options for the Land Registry. The consultation closed on 26 May and we are currently reviewing the responses. Until this is completed, no decision will be made.
Diana Johnson
Having a Land Registry office in Hull, I note that in the consultation of July 2014, when the coalition scrapped plans to sell off the Land Registry, only 5% of people consulted said that it would be more efficient and effective to do so, and the Government admitted that the case for change had not been made. So what has changed since then?
Sajid Javid
As I said, no decision has been made. It is clear, however, that the Land Registry has been moving increasingly from the use of paper to electronic means, and these modernisation and efficiency changes need to carry on. Regardless of ownership, this is just the kind of change we want to see.
Bill Esterson (Sefton Central) (Lab)
One of the strengths of the Land Registry is its transparency and independence, but those proposing to buy it have links to offshore tax havens—places that do everything to avoid such transparency and independence. The sale to firms with links to tax havens will undermine the trust of homeowners and mortgage lenders. Is not the truth that this sale of family silver makes a complete mockery of Government claims to be tackling tax avoidance and tax evasion?
Sajid Javid
It would be entirely wrong to comment on any press speculation, but, as I said, no decision has been made.
Rebecca Pow (Taunton Deane) (Con)
13. What steps the Government are taking to promote apprenticeships in the arboriculture, forestry, horticulture and landscape sector.
Pauline Latham (Mid Derbyshire) (Con)
14. What steps he is taking to support people made redundant from Courtaulds UK Ltd in Belper.
The Secretary of State for Business, Innovation and Skills and President of the Board of Trade (Sajid Javid)
My thoughts are very much with the workers and their families at this difficult time. Jobcentre Plus has acted swiftly to offer support, including a jobs fair with other local partners for Courtaulds staff and others.
Pauline Latham
I thank the Secretary of State for that answer, and I know that he has a personal interest in Courtaulds. Will he take steps to tighten loopholes restricting companies from moving assets to third-party companies before going into administration, which puts any potential sale of the company in jeopardy?
Sajid Javid
My hon. Friend will know that my father’s first job was at a Courtaulds mill. I have taken an interest in the company for a long time and what has happened is very sad. Current insolvency law already enables assets to be disposed of prior to the start of formal insolvency and before recovery. It is, therefore, possible to take action against directors for misconduct, if that is what the administrators find. We will look carefully at the report when it is published in three months’ time.
Scott Mann (North Cornwall) (Con)
15. What infrastructure projects are using British-made steel.
Lucy Allan (Telford) (Con)
T1. If he will make a statement on his departmental responsibilities.
The Secretary of State for Business, Innovation and Skills and President of the Board of Trade (Sajid Javid)
Following last week’s referendum result, my Department has been talking to businesses up and down the country, and we will work with them over the weeks and months ahead. To that end, later today I will host a round table with trade bodies and business leaders to consider our next steps. I would also like to take this opportunity to welcome Tim Peake back to earth after six months of education and inspiration aboard the international space station.
Lucy Allan
I spent last week visiting businesses right across Telford. Notwithstanding short-term market volatility, the gilt market has been strong throughout and equities are back up today. Business leaders in Telford are confident about the future. Having visited Telford on several occasions, does the Secretary of State agree that it has a great future and is a great place to do business?
Sajid Javid
I absolutely agree with my hon. Friend; I will visit Telford again and again with her. She will know that unemployment in her constituency has fallen by 60% over the past six years. That is testimony to the strength of local businesses, to her own work and to this Government’s policies. I will work with her in every way to secure Telford’s bright future.
Chi Onwurah (Newcastle upon Tyne Central) (Lab)
Despite the Secretary of State’s complacency, this is a very difficult time for British business. Over the past 24 hours we have lost our triple A rating and £150 billion has been wiped off the value of the FTSE 350. Will he reassure the many worried workers and businesses that, unlike with Tata, when he was on the other side of the planet, he will be in the boardrooms of Nissan in Sunderland, Hitachi in Newton Aycliffe, Jaguar Land Rover in Solihull and other businesses across the country to share his plan for a secure economic exit as they make investment decisions in the weeks and months to come?
Sajid Javid
I was hoping to welcome the hon. Lady as the new shadow Business Secretary, but I understand that she is not in that position yet—if her leader is having problems filling it, I am happy to make some suggestions. I assure her that, yes, because of last week’s decision, there are of course some short-term challenges for businesses, but we must also remember that there are medium and long-term opportunities as well, including for the auto industry.
Chi Onwurah
It is clear that the Secretary of State not only does not have a plan, but does not even have a plan for a plan. He cannot say whether he personally wants to retain access to the single market for goods and services. Is it not true that the only plan he has is for his joint leadership bid, and that British businesses and the British job market stand to lose from the economic uncertainty that his party’s divides have unleashed?
Sajid Javid
I was hoping that the hon. Lady would not play party politics with something as straightforward as this. Many businesses up and down the country are reflecting on last week’s decision, and my job is to reassure them that that decision can be made to work. As well as challenges, there are plenty of opportunities, and when I meet businesses later this afternoon that is exactly the message I will be giving to them.
Mary Robinson (Cheadle) (Con)
T2. The Greater Manchester region is a huge supporter of apprenticeships, with 30,000 starts last year alone. I recently met the young apprentices from Thales in my constituency, who are doing excellent and innovative work on the development of underwater sonar systems. Will the Minister outline what additional support his Department is giving to the city region to increase apprenticeship uptake?
Justin Madders (Ellesmere Port and Neston) (Lab)
T4. As we head towards Brexit, many EU-derived regulations will no doubt come under the microscope. Some of the most important are the working time regulations, which protect vital safe working limits in the workplace. Will the Government confirm that they intend to retain all elements of the working time regulations?
Sajid Javid
The first thing the hon. Gentleman should know is that nothing changes right here and now. For the next few years, there will be no changes—we are members of the European Union, and all our rights and obligations will be respected. In the longer term, this country has always been committed, quite rightly, to workers’ rights. That will not change.
Andrew Stephenson (Pendle) (Con)
T5. Pendle is home to a number of excellent aerospace companies such as Euravia, Senior Aerospace Weston and Rolls-Royce. What assurance can Ministers give the aerospace sector of the Government’s ongoing commitment following the vote to leave the EU?
Mr Iain Wright (Hartlepool) (Lab)
I think that is the kindest thing that anybody has ever said to me.
The Secretary of State fully appreciates that uncertainty lasting for months and years will drain business investment away from Britain. In our Select Committee this morning, Funding Circle told us that an £100 million investment deal with a European consortium will now not go ahead—it has been pulled, and it will not be the only one. Today’s round table is a welcome gesture, but in the face of the current unprecedented uncertainty, what tangible actions is the Secretary of State putting in place to maintain and stimulate inward investment, maintain that funding gap, and steady business nerves?
Sajid Javid
It is good to see some leadership on business issues on the Labour Benches. The hon. Gentleman makes an important point. Today’s round table is not a gesture; it is about genuinely listening to businesses and businessmen and women about the issues that they face, and about how to take advantage of the opportunities that will be created. He will know that nothing changes for at least a couple of years, which will give us time to plan for the future, including for inward investment opportunities and new trade opportunities. I would be happy to meet him and discuss that issue further.
Mr Stewart Jackson (Peterborough) (Con)
I commend the Ministers on the Treasury Bench for their pragmatic approach to last week’s result. I think that we are all committed to the UK becoming an outward-looking global trading nation. With that in mind, will Ministers redouble their efforts to support the Australian Prime Minister, who has said that he has instructed his officials to work with New Zealand to prepare a trade deal with the United Kingdom very shortly?
Sajid Javid
My hon. Friend highlights the opportunities of Brexit and we absolutely should now start embracing those opportunities; free trade agreements with many more countries is just one of them. Australia is an excellent example, and that is exactly the sort of thing we should be working on.
Mr Virendra Sharma (Ealing, Southall) (Lab)
Many of my constituents have no or very little access to computers and the internet. Will the Government continue to press banks and other key providers to retain high street services for customers who receive utility and other bills in paper form on request?
Sammy Wilson (East Antrim) (DUP)
Thank you, Mr Speaker.
This month it was announced that manufacturing exports from Northern Ireland to non-EU countries increased by 24%, while those to EU countries fell by 4%. What steps can the Minister take to help Northern Ireland firms to exploit opportunities to grow international economic links to promote growth in Northern Ireland, increase employment and help to reduce the UK balance of payments deficit?
Sajid Javid
It is great to hear—the hon. Gentleman is absolutely right—that manufacturing is on the rise in Northern Ireland and throughout the UK. Volumes are up, exports are up and employment is up. There are, of course, further steps that we can take. Someone asked earlier about free trade agreements, and that is something that we can do and exploit now that we have Brexit.
Several hon. Members rose—
Oral Answers to Questions
Sajid Javid Excerpts(8 years, 7 months ago)
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Julie Elliott (Sunderland Central) (Lab)
3. What assessment he has made of the adequacy of availability of broadband to businesses in the north-east.
The Secretary of State for Business, Innovation and Skills and President of the Board of Trade (Sajid Javid)
I recently announced a joint review by the Department for Business, Innovation and Skills and the Department for Culture, Media and Sport of business broadband to ensure that businesses are able to access the affordable, high-speed broadband that they need and deserve. More than 250,000 homes and businesses in Yorkshire and the Humber, and more than 100,000 in the north-east, have superfast broadband available for the first time thanks to the Government’s investment programme.
Paula Sherriff
I thank the Secretary of State for his response. If the Department is on track to meet its targets, why does Ofcom analysis predict that by 2017, when 95% of all UK premises will have superfast broadband, around 18% of small and medium-sized enterprises, including many in my constituency, will not? Why are so many businesses being left behind, and does the Secretary of State accept that his plans show a lack of ambition?
Sajid Javid
No, I do not. I hope that the hon. Lady will recognise that superfast broadband coverage throughout the UK has increased from 45% of the country in 2010 to almost 90% now, and that we are fully on target to reach 95% by 2017. It is important that we keep looking at new ways to extend coverage through fixed wireless and mobile, and that is exactly what we are doing.
Julie Elliott
A senior adviser at the Institute of Directors has said that they expect the Government to meet the universal service obligation, but that is only because the bar is set so low. How are the Government going to provide the physical infrastructure to maintain Britain’s position at the forefront of digital innovation in business? Will the Secretary of State also answer the question about the lack of provision for SMEs, which he did not address?
Sajid Javid
We are extending broadband coverage throughout the country and it includes hundreds of thousands of SMEs, including in the hon. Lady’s constituency. We are on target, and she may like to know that our USO is twice as high as is recommended in the EU. Already, despite the fact that there is more work to do—I am the first to accept that—we have wider coverage than most of our large EU partners, we have higher average speeds and we have the lowest average price.
Kevin Hollinrake (Thirsk and Malton) (Con)
The Ofcom solution to the desperately poor penetration of fibre to premises in the UK is to open up access to BT’s ducts and poles, but that would require reasonable rates of access as well as a clear network map of those ducts and poles. What can the Secretary of State do to make sure that BT complies with those requirements?
Sajid Javid
I have read Ofcom’s report carefully and met Ofcom a number of times about that issue, and I have every reason to think that BT will comply. If that does not happen, of course we will look at what action we can take.
James Morris (Halesowen and Rowley Regis) (Con)
2. What recent steps he has taken to (a) promote regional growth and (b) create a midlands engine.
The Secretary of State for Business, Innovation and Skills and President of the Board of Trade (Sajid Javid)
We are absolutely committed to regional growth. We recently launched a further round of growth deals, and the March Budget highlighted the Government’s support for the midlands engine. It includes a £250 million midlands engine investment fund, new enterprise zones, and a devolution deal for Greater Lincolnshire worth £450 million.
James Morris
One of the keys to growth in the black country part of the west midlands, which I represent, is greater collaboration between business and further education colleges. Halesowen College and Sandwell College both excellently serve my constituency. Will the Secretary of State agree to meet the principals of Halesowen and Sandwell Colleges to talk more about how to reduce the skills gap in the black country, to promote further growth in the region?
Sajid Javid
I agree absolutely with my hon. Friend. One of the reasons we have seen a 50% fall in his constituency is that he has been promoting just that type of collaboration. I enjoyed visiting Halesowen College with him last year to learn about the advanced science, engineering and technology centre, and of course I will be more than happy to meet him and college representatives.
Keith Vaz (Leicester East) (Lab)
Will the Secretary of State join me and other Leicestershire MPs as well as many throughout the world in congratulating Leicester City football club on winning the premier league yesterday? Does he agree that this will boost jobs not just in Leicester but in the midlands region, and not just for those interested in football but for those in tourism? Does he accept that rather than Red Leicester, it is actually Blue Leicester?
Sajid Javid
I like the sound of Blue Leicester—I like it very much—but let me congratulate the right hon. Gentleman and, most of all, his constituents on their stunning victory last night, which I think the whole nation is celebrating. I suggest he make the most of it while he can.
Amanda Milling (Cannock Chase) (Con)
Regional growth and the midlands engine are reliant on businesses such as those in Cannock Chase that are investing and exporting. I visited a business in Cannock on Friday that is looking to grow, but faces difficulty in getting access to finance from the bank it has banked with for years, and this has resulted in its switching banks. Will my right hon. Friend outline what measures the Government have taken to improve access to finance for small and medium-sized businesses?
Sajid Javid
My hon. Friend raises a very important issue. I will highlight two things. First, there is the local growth fund: almost £8 billion has already been allocated, and the Chancellor talked in the last Budget of a further £4 billion by the end of this Parliament. There is also the launch of the midlands engine investment fund: hundreds of millions of pounds will be allocated to small businesses, including those in Cannock Chase.
Chris Leslie (Nottingham East) (Lab/Co-op)
But if we are to get all these visitors to Leicester, Nottingham, Derby and across the east and the west midlands and we are to get the midlands engine moving, will the Secretary of State talk to his colleagues about infrastructure investment more generally, because we are certainly losing out in the east midlands, with only £37 per head of rail investment compared with £294 per head in London?
Sajid Javid
The hon. Gentleman raises the important issue of infrastructure investment. It is because we have a strong economy that, under this Government, we have a programme of £300 billion of investment over the next few years. That of course includes the midlands, with the investment in the main line and in HS2. However, there is always more we can do, and I am very happy to hear new ideas.
Michael Fabricant (Lichfield) (Con)
Will the Secretary of State take this opportunity to praise the work of the local enterprise partnerships in promoting the economy of the west midlands, particularly the Greater Birmingham and Solihull LEP, of which Lichfield is a member? Will my right hon. Friend clarify, however, what will be the role of the LEPs and what will be the role of the midlands engine, which is about to appoint or has appointed a new chairman, in helping to promote the regional economy?
Sajid Javid
I join my hon. Friend in commending the work of LEPs throughout the UK, but especially that of the Greater Birmingham and Solihull LEP, not least because it covers my constituency. I have seen the work that it has achieved, particularly under its chairman, Andy Street, and it is very commendable. The LEPs will work with local authorities throughout the midlands to really fire up the midlands engine, which means co-operation on things such as infrastructure, trade and skills.
Mr John Spellar (Warley) (Lab)
A couple of weeks ago, I asked the Prime Minister about the possible closure of the British Gas Oldbury site, with the loss of 700 jobs. In his reply, the Prime Minister assured me:
“We will make sure that a ministerial taskforce is available to talk to the company and the local community and to provide assistance in terms of retraining and other things.”—[Official Report, 20 April 2016; Vol. 608, c. 917.]
Imagine my disappointment on being told that there will be no ministerial taskforce, but that Ministers will have regular contact with a taskforce to be set up by the local authority. I do not think that that matches up to the assurance from the Prime Minister. There needs to be a real drive to keep or to replace these jobs, so when is BIS going to deliver on the Prime Minister’s assurance?
Sajid Javid
Job losses, whenever they are announced, are regrettable, as they of course are in this case, which is why we must do everything we can. I can tell the right hon. Gentleman that soon after the Prime Minister said that, the Minister for Small Business, Industry and Enterprise and the Minister for Employment had a meeting with a managing director from British Gas. I understand that the redundancies are not final yet—the consultation period is still going on—so let us hope that they are not as bad as those that have been seen. We will continue to do whatever we can, and that includes contact with the company.
Colleen Fletcher (Coventry North East) (Lab)
4. What his Department’s strategy is for the funding of adult skills provision in FE colleges for the remainder of this Parliament; and if he will make a statement.
Tom Blenkinsop (Middlesbrough South and East Cleveland) (Lab)
8. What assessment he has made of the most significant threats to the UK steel industry.
The Secretary of State for Business, Innovation and Skills and President of the Board of Trade (Sajid Javid)
Global overproduction and reduced demand have caused steel prices to collapse, eroding the profitability of steel producers across the world. We have acted decisively to help UK steel companies by delivering lower electricity prices, tackling unfair trade, updating procurement guidance and introducing flexibility in emissions regulations.
Tom Blenkinsop
One of the main issues in the current steel crisis is time. The Greybull deal took nigh on 12 months, and that time was allocated to ensure that a better buyer, as opposed to the original potential purchaser, came forward. What has the Secretary of State done and what conversations has he had with Tata to ensure that it will be a responsible vendor and allow enough time to encourage not just buyers, but the best buyers, to come forward? Where does he see strip and tube in the future? Does he still see Tata remaining in situ in some form in both those sectors?
Sajid Javid
The hon. Gentleman is right about the importance of time for securing a viable long-term future for the Tata strip business. I have had a number of discussions, as have my officials, with Tata. It has been very straightforward in being reasonable about time—of course, it does not have an unlimited amount of time, but it has shown through the long products business that it understands that things take time.
Craig Williams (Cardiff North) (Con)
I congratulate my right hon. Friend on his approach—particularly to Tata and Neath Port Talbot in south Wales, but also to Celsa Steel in Cardiff. Some £76 million has already been given in compensation to high-energy users and the Government are projected to spend, I hope, £100 million this year. Will my right hon. Friend confirm that and clarify what future support we can give to high-energy steelmakers?
Sajid Javid
My hon. Friend is absolutely right to raise the issue of Celsa Steel, which has made a substantial investment in the UK, employing hundreds of people, and we want to see that continue. The price of electricity is very important to Celsa and other steel producers. We have already extended the compensation available and we have announced that we will move towards exemption, which I think will help Celsa and many others.
Mr Iain Wright (Hartlepool) (Lab)
I thank the Secretary of State for attending the Thursday sitting of the Select Committee, which is conducting an inquiry on steel. He may recall that I asked him about the maintaining of confidence. There is growing concern that firms are not supplying to Tata facilities because they fear that the steel business may go into administration and they will not be paid, and credit insurance is being withdrawn. Businesses that supplied SSI do not want to get their fingers burnt twice, and customers, especially those with long-term horizons, are looking to Tata’s competitors for alternative provision. What further firm steps will the Government take on the matter of credit insurance to ensure that word goes out, loudly and with clarity, that this is a viable operation and firms can supply to and buy from Tata with confidence?
Sajid Javid
I thank the hon. Gentleman for his Committee’s work on this matter, which is helpful to the debate and enables us to look more closely at the position. As for the question of suppliers to Tata, and, indeed, large customers, I have already written to, or asked officials to write to, all the suppliers and customers of Tata Steel strip products. We have contacted the largest suppliers and the largest customers, as has Tata, which has given its reassurance on this point as well. However, I think that the main reassurance I can give relates to the approach of the Government, who are doing all that they can to secure a long-term, viable future for the business.
Tom Pursglove (Corby) (Con)
I would argue that Tata Steel in Corby is a vital component of the midlands engine. Bearing in mind all the commercial sensitivities, will the Secretary of State update us on exactly what point has been reached in the discussions that are taking place with the aim of securing its future?
Sajid Javid
My hon. Friend’s approach is commendable, as is the work that he is doing in Corby to secure Tata Steel’s future. As I hope he understands, there is a limited amount that we can say about what is a very commercially sensitive process, but let me reassure him that we are doing everything we can.
Jonathan Edwards (Carmarthen East and Dinefwr) (PC)
Does the Secretary of State agree that it is of strategic importance to the economies of Wales and the wider United Kingdom to keep the blast furnaces in Port Talbot operational following any future takeover? Will he consider introducing a steelmaking-specific enterprise incentive scheme, as advocated in the management buyout option, to provide the fiscal incentive that is required to safeguard steelmaking in Wales?
Sajid Javid
I agree with the hon. Gentleman in that I, too, want to see a future for steelmaking in Wales, and we are doing everything that we can to help with that. He mentioned the management buyout proposal. We are taking a very careful look at that, and would, of course, be willing to work with those involved.
Mike Wood (Dudley South) (Con)
What action is my right hon. Friend taking to help UK steel suppliers to win Government contracts, and to ensure that small and medium-sized enterprises in the supply chain benefit from those opportunities?
Sajid Javid
That is a good question. As my hon. Friend will know, we have already changed procurement rules so that they can take economic and social factors into account. We are also making the pipeline of deals much more visible, and targeting that at SMEs in particular.
Kevin Brennan (Cardiff West) (Lab)
Carwyn Jones, the Labour First Minister in Wales, who is at Port Talbot again today, had a package of support in place immediately after Tata’s announcement of its intention to sell. Now that the UK Government have belatedly woken up and followed that lead, how confident is the Secretary of State that Tata’s true intention is to be responsible? It took over a year to sort out long products, and Tata wants this to be done and dusted—including due diligence—by the end of June. Does the Secretary of State think that that is a realistic prospect?
Sajid Javid
We are working with the Labour First Minister and his Government. Both Governments understand just how important this is, and I think it is also important for us to continue to work together. As for the question of timing, I believe, as I said earlier, that Tata is sincere in its commitment to a reasonable time frame and a reasonable process. I have no reason to think that that will not be the case. Tata continues to show flexibility, and I hope that things stay that way.
Wendy Morton (Aldridge-Brownhills) (Con)
9. What steps his Department is taking to support people who want to start their own businesses.
Vicky Foxcroft (Lewisham, Deptford) (Lab)
10. What steps the Government are taking to increase take-up of apprenticeships among (a) people with disabilities, (b) care leavers and (c) other disadvantaged groups.
The Secretary of State for Business, Innovation and Skills and President of the Board of Trade (Sajid Javid)
We want to ensure that apprenticeships are accessible to the widest possible range of people. We are promoting reasonable adjustments for disabled learners and fully funding apprenticeship training for young people aged 19 to 24 with an education, health and care plan and for care leavers up to the age of 24.
Vicky Foxcroft
As the Government already have targets to increase the proportion of black and minority ethnic apprenticeships by 20%, does the Minister not agree that they should do the same for people with disabilities and for care leavers?
Sajid Javid
I agree that we should do all that we can, and we have made it a huge priority to help more individuals with learning difficulties and disabilities to take up apprenticeships. We have done this by providing guidance for individuals and working with employers to help them better to understand what more we can do. Our apprenticeship revolution will leave no one behind.
Sir Henry Bellingham (North West Norfolk) (Con)
21. Is the Secretary of State aware that the Construction Industry Training Board, which is based in Bircham Newton in my constituency, has been excellent at encouraging people with disabilities to take up apprenticeships? Can he confirm that when the CITB’s existing levy is merged with the apprenticeship levy, it will still have sufficient funding to carry on with its excellent programmes? Will he come up to Bircham Newton to visit the CITB at some stage during his tenure?
Sajid Javid
My hon. Friend is absolutely right to raise the good work of the CITB in this regard, and when the apprenticeship levy is introduced from April 2017, we can make sure that it continues to have the funding available to do the same kind of work.
Ruth Cadbury (Brentford and Isleworth) (Lab)
12. What discussions he has had with the Chancellor of the Exchequer on the potential effect on small and medium-sized enterprises of proposed changes to filing of tax returns.
William Wragg (Hazel Grove) (Con)
13. What steps he is taking to reduce the level of business regulation.
The Secretary of State for Business, Innovation and Skills and President of the Board of Trade (Sajid Javid)
The Government committed in their manifesto to cut £10 billion of business red tape through the business impact target. We will report on our progress in June this year.
William Wragg
The Government are doing well to cut regulation at home, but we cannot ignore the fact that the most burdensome regulations on British companies come from the European Union and cost British business £22 billion a year. Given that there were 1,469 new pieces of EU regulation and 51 EU directives in 2015, is it not clear that the only way to end the cost to British business is to vote to leave?
Sajid Javid
My hon. Friend is absolutely right to raise the issue of cutting business regulation, but I do not recognise the £22 billion a year figure for EU regulation. I am sure that he will agree that as well as looking at the costs of regulation, we should consider the benefits of the single market. With 500 million consumers, it is the world’s largest economic zone, and there is no doubt that it helps to generate jobs throughout Britain, including in Greater Manchester.
Andrew Gwynne (Denton and Reddish) (Lab)
The Secretary of State will be aware that many small businesses often apply to only one lender for finance—usually their bank—and that two in five of those turned down do not go on to apply for finance anywhere else. What more are the Government doing to ensure that small businesses have access to as good a range of financial products as possible to keep the economy moving in the right direction?
Sajid Javid
First, the hon. Gentleman may know that one of the changes brought in during the coalition Government was that if a small business’s application for credit is refused, that application can be passed on, with the business’s permission, to other potential lenders. That has certainly helped to change the landscape. We can also help to increase competition, on which the Treasury has been leading. If the hon. Gentleman looks at the number of providers of SME finance, he will see that there has been a dramatic change there, too.
Jo Cox (Batley and Spen) (Lab)
15. What recent assessment he has made of trends in productivity levels.
Julie Elliott (Sunderland Central) (Lab)
T1. If he will make a statement on his departmental responsibilities.
The Secretary of State for Business, Innovation and Skills and President of the Board of Trade (Sajid Javid)
Ministers and officials across government continue to work around the clock to support Britain’s steel industry—I have updated the House on progress several times and will continue to do so, whenever appropriate; our two major pieces of legislation, the Enterprise Bill and the Trade Union Bill, are moving closer to the statute book; and we are on the verge of naming the National Environment Research Council’s new polar research vessel. The final decision on that will be made by the Minister for Universities and Science—Joey McJoface, as we like to call him.
Julie Elliott
In The Sunday Times this week it was reported that meetings are taking place in France to look at how people could take advantage of getting business from the UK in the event of a Brexit vote. Does the Secretary of State agree that remaining in the EU is vital for British trade, particularly in the automotive and aerospace industries, and for the health of the British economy as a whole?
Sajid Javid
Yes, I agree with the hon. Lady on that. She mentioned the automotive and aerospace industries, two of our strongest manufacturing sectors in the UK, which rely heavily on a supply chain that is international—much of it is in Europe. Equally, she could mention our services industries, which account for 80% of our GDP.
Sir Simon Burns (Chelmsford) (Con)
T6. Does the Secretary of State accept that the proposals to allow waiters and waitresses, rather than restaurant owners, to actually receive tips given to them will be warmly welcomed? Does he not think that the House of Commons should show a lead, because in our own restaurants the agency workers and part-time workers who serve Members and their guests do not receive tips?
Ms Angela Eagle (Wallasey) (Lab)
Two Select Committees of this House are now preparing to examine the collapse of BHS into administration last week, putting at risk 11,000 jobs. Sir Philip Green bought the company for £200 million, took hundreds of millions of pounds out of it in dividend payments for his own family and then sold it for £1 to a bankrupt with no retail experience. What does the Business Secretary think are the issues for public policy as he contemplates the current situation? Does he think this represents responsible ownership?
Sajid Javid
The hon. Lady is right to raise that issue. As she said, two Select Committees are already looking into it, and considerable concern has been expressed in Parliament. I share some of those concerns, which is why I can inform her that today I have written to the chief executive of the Insolvency Service and instructed her to commence an investigation immediately. She has agreed to do so, and I will make both those letters—mine and hers—available in the Libraries of both Houses later today.
Ms Eagle
That is good news and I certainly welcome the steps that the Business Secretary has taken. During Sir Philip Green’s stewardship of BHS, the pension fund went from a surplus to a black hole of £571 million. What options do the Government and the pensions regulator now have to ensure that Sir Philip Green pays his fair share of that huge liability? Does the Secretary of State agree that the Pension Protection Fund was designed as a lifeboat for staff pensions, not a funding stream for the owner’s luxury yacht?
Sajid Javid
Hopefully, the hon. Lady will understand that it would be wrong of me, and of anyone else, to single out any particular individual. That is for independent investigators to look at by examining the evidence in front of them. She will also know that, when it comes to defined benefit pension schemes, there are many in deficit, and just because one is in deficit does not necessarily mean that there has been some kind of wrongdoing. As I have said, I have instructed the Insolvency Service to commence an investigation, but she should also be reassured that the pension regulator will be looking into this matter.
James Morris (Halesowen and Rowley Regis) (Con)
T10. There are 850,000 dementia sufferers in the UK, and that number is set to double over the next few years. What is the Minister doing to encourage British scientists to be as innovative as possible in delivering on improved care for those suffering from dementia?
Diana Johnson (Kingston upon Hull North) (Lab)
T3. Given the similarity of recent events at British Home Stores with what happened to Hull-based Comet four years ago, when British taxpayers were left with tens of millions of pounds to pay out in redundancy payments, will the Secretary of State ensure that the report that he commissioned on Comet and the Comet scandal is published?
Sajid Javid
The hon. Lady will know that the report was commissioned by my predecessor. I will take a close look at what she has said and get back to her.
Seema Kennedy (South Ribble) (Con)
Given the hope of renewed trade links between the UK and Iran, which will be dependent on good communication, does my right hon. Friend consider that now is the right time to withdraw accreditation for Persian GCSE and A-level?
Sajid Javid
My hon. Friend is right to highlight the importance of trade with Iran. She will know that that is why the Government have announced a trade mission that will take place soon. If more people in the UK speak Persian, that will help. I will happily take up the matter with my right hon. Friend the Education Secretary.
Mike Kane (Wythenshawe and Sale East) (Lab)
T4. I welcome the fact that BHS administrators have entered consultation with USDAW, the retail union, for the lack of consultation was in part to blame for the pension fund going from a £5 million surplus to a £571 million deficit. In the light of that, will the Secretary of State consider the case that there should be enhanced employee rights, in particular in this aspect of companies law?
Sajid Javid
As I said earlier, it would be wrong of anyone to jump to conclusions about the pension fund and the reason for the deficit. The right way forward is for independent regulators to take a look.
Andrea Jenkyns (Morley and Outwood) (Con)
I am a champion of the Sutton Trust and the inquiry by the all-party parliamentary group on social mobility into access into leading professions. What is the Department doing to support our leading professions to work with schools and universities to build up the schools base, so that more young people from disadvantaged backgrounds can access our top professions?
Liz McInnes (Heywood and Middleton) (Lab)
T5. A total of 11,000 BHS employees face an uncertain future over not just their jobs, but their pensions. Where will the Secretary of State place responsibility for filling the pension fund black hole? Will it be with the taxpayer or with the owners of the company, who paid themselves more than £400 million in dividends while the pension fund was driven into the ground?
Sajid Javid
The hon. Lady will know that if, sadly, defined benefit pension funds have trouble, we have the Pension Protection Fund in place, but of course we should always examine why a pension fund may need recourse to the PPF. That job should be done by independent regulators, not politicians.
Martin Vickers (Cleethorpes) (Con)
The HCF CATCH training facility in my constituency was established 10 years ago as a partnership between the local authority and the private sector, since when 800 apprentices have passed through its doors. May I invite my right hon. Friend the Secretary of State or the Skills Minister to visit it? Does he agree that such a partnership is the way forward?
Angela Rayner (Ashton-under-Lyne) (Lab)
T8. In the Secretary of State’s discussions with Tata, will he have time to raise Tata’s involvement in the outsourcing of up to 800 jobs from British Airways, including its centre in south Manchester, which supplies jobs to my constituents and has already announced 80 redundancies? As The Daily Telegraph revealed last week, this is another example where Tata’s actions threaten our national security along with our jobs, so will the Government step in to protect both?
Sajid Javid
If the hon. Lady wants to send me more detailed information about that, I will gladly take a closer look.
Mr David Nuttall (Bury North) (Con)
Why should 100% of British businesses have to comply with EU regulations when less than 10% of them export to the EU?
Sajid Javid
I touched earlier on the importance of the single market. It is the largest single market in the world, with 500 million consumers, and it brings huge benefits to British businesses in growth and jobs.
Yasmin Qureshi (Bolton South East) (Lab)
T9. Will the Secretary of State reconsider the decision to scrap bursaries for nurses? First, that will deter mature students and people from black and minority ethnic communities and disadvantaged communities, and secondly, while nurses are training, they spend 50% of their time doing practical work, looking after people. It is unfair that they should pay to provide services to others.
Richard Fuller (Bedford) (Con)
Alas, there is no law against selling a company to a bunch of clowns, which is a great pity for the employees and pension holders of British Home Stores. However, there is an expectation that the public should be able to look to the advisers in such a sale—the lawyers and accountants—to live up to their responsibilities and to do their duty. Will my right hon. Friend look carefully at the templates and responsibilities for advisers in transactions so that we do not see another great British company sold to a bunch of muppets?
Sajid Javid
I can reassure my hon. Friend of that. He has spoken eloquently on this issue a number of times, and he knows it well. We will learn lessons from the collapse of any company, but especially one as important and as large as BHS. As I said earlier, there will now be an investigation by the Insolvency Service, which I have instructed to start today, and we will certainly draw lessons from the outcome of that and other investigations.
Oral Answers to Questions
Sajid Javid Excerpts(8 years, 9 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Rishi Sunak (Richmond (Yorks) (Con)
1. What steps he is taking to help small and medium-sized businesses become more competitive.
The Secretary of State for Business, Innovation and Skills and President of the Board of Trade (Sajid Javid)
Britain is one of the top 10 places in the world in which to start and run a business. We are boosting skills, boosting productivity, raising the quantity and quality of apprenticeships in England, cutting tax and regulations and building stronger trading links with emerging markets.
Rishi Sunak
My rural North Yorkshire constituency is home to many businesses with strong local roots but global aspirations. May I ask the Secretary of State what his Government are doing to help small and medium-sized companies become exporters?
Sajid Javid
My hon. Friend is a distinguished entrepreneur and speaks with a great deal of experience, and I take what he says very seriously. I can reassure him that my Department is first in leading cross-Whitehall work on exports. UK Trade & Investment is one of those entities that connects UK businesses to export opportunities around the world. Indeed, the UK export hub is continuing to travel across the country, meeting first-time exporters face to face. It has already visited Yorkshire, and, indeed, it is in Yorkshire today.
Chris Leslie (Nottingham East) (Lab/Co-op)
How on earth are small and medium-sized businesses going to be competitive if, in 100 days’ time, they find that their access to those level playing field markets will be firmly thrown away and that that door will be shut in their face? What will the Secretary of State do to be much more vocal in highlighting the phenomenal risk to our businesses if we end up losing access to some of those important markets?
Sajid Javid
The hon. Gentleman is right to raise that issue. There are many risks with that decision. It is my personal belief that the uncertainty that could be created will be bad for business and bad for jobs and growth. However, there is a lot that the Government have done and will continue to do to support businesses. For example, they have cut the corporation tax rate, which I hope he welcomes.
Mr David Nuttall (Bury North) (Con)
I have yet to speak to a businessman from a small or medium-sized enterprise who has said that what they want is more regulation, either from this place or the European Union. Does not my right hon. Friend agree that the thing that would most help small and medium-sized enterprises become more competitive both in this country and around the world is for this country to leave the European Union?
Sajid Javid
I think that my hon. Friend is right to raise the issue of red tape regulation, as it can strangle businesses. That is why we are proud that, in the previous Government, we made a £10 billion cut in red tape for businesses and we are committed to make a further £10 billion cut, which I know that he welcomes.
Rachael Maskell (York Central) (Lab/Co-op)
Small and medium-sized enterprises in York are struggling to be competitive. With the cuts to local authorities, business rates are soaring by 11%, and that is on top of the additional costs that SMEs are paying. I will, if I may, ask a question on behalf of Frank Wood, chair of York Retail Forum, who says, “Do you want the high street without any shops?”
Sajid Javid
I think that what Frank would want is a high street full of customers. That means making sure that our economy remains strong. Our economy grew faster than any other G7 country last year, and that was because of our long-term plan, of which we will hear more tomorrow from the Chancellor.
Geoffrey Clifton-Brown (The Cotswolds) (Con)
Is it not vital that my right hon. Friend’s target of 100,000 new businesses exporting by 2020 is met by lighting that spark in small and medium-sized businesses to export for the first time and, above all, to keep exporting?
Sajid Javid
My hon. Friend is absolutely right. Not enough British businesses export. More than double the number of businesses export in Germany compared with that in the UK, so we can do more and that is at the heart of the Government’s strategy.
Hannah Bardell (Livingston) (SNP)
I am sure that the Minister will agree that a big part of helping small and medium-sized businesses become more competitive is ensuring that there is access to a skilled workforce. In National Apprenticeship Week, the Young Women’s Trust has shown that some employment sectors are hardly welcoming any young women. Fewer than 2% of construction apprentices and 4% of engineering apprentices are female. Will the Minister tell me what his Department is doing to encourage more young women into apprenticeships?
Sajid Javid
The hon. Lady raises an important issue. We want all people, and that means more and more women, to benefit from our apprenticeship programmes in England, Scotland and elsewhere. In the past few years, we have tripled the number of women in England who take up apprenticeships in engineering, and that is something that Scotland can look at as well to see how we achieved that. I also think that trying to get more women to think about these subjects should start at a much earlier age. We should not point the finger just at colleges and others; we should start at a much earlier age to try to encourage women to look at lots of different careers.
Hannah Bardell
The Minister will be aware, I am sure, of the great work that the Scottish Government and our Education Minister, Cabinet Secretary Angela Constance, have been doing, but I would suggest that he also needs to work very specifically on the issue of pay for women apprentices. Their male counterparts can be paid as much as 21% more an hour, so what steps are the Minister and his Government taking to ensure that good apprenticeships offer fair and equitable pay for all?
Sajid Javid
I am sure the hon. Lady will welcome the fact that under this Government the gender pay gap has fallen to its lowest since records began. Of course there is still much more to do, and at the heart of that is the fact that we will always require a strong economy, so I hope she will support tomorrow’s Budget.
Callum McCaig (Aberdeen South) (SNP)
2. What steps he is taking to help businesses increase their exports.
The Secretary of State for Business, Innovations and Skills and President of the Board of Trade (Sajid Javid)
We are mobilising the whole of Government to improve the UK’s export performance. A refocused UKTI will be at the centre of a co-ordinated approach and relevant Departments will share their expertise to get British businesses exporting.
Callum McCaig
I thank the Secretary of State for that answer, but the reality is that the UK export story is one of declining market share in the global market. Does the Secretary of State agree with the assessment of the British Chambers of Commerce, and will he accept its calls for urgent and practical support for UK businesses to export?
Sajid Javid
What I do accept is that more needs to be done to get British businesses exporting. That includes the work of UKTI, but it also means that all Government Departments have a role to play. For example, UKTI works with the Great British Food Unit, an operation started by DEFRA. So I think a lot of Government can get behind exports by working more closely together.
Richard Fuller (Bedford) (Con)
If the UK left the single market, my understanding is that the highest tariff that could be applied on UK manufactured goods would be the World Trade Organisation’s simple average most-favoured nation applied tariff, which for non-agricultural products is 4.19%. Can my right hon. Friend write to me to confirm that is correct, and to provide a factual context for the so-called risks of leaving the European Union? Can he also write to me to confirm that that number is lower than the annual fluctuation in the euro/sterling exchange rate for each of the last three years?
Sajid Javid
In answer to my hon. Friend’s first question, of course I can check that tariff and write to him. He raises an important point about trade, and he has clearly raised the issue of tariffs, but he will be aware that there are lots of non-tariff barriers as well, particularly for services. It is important to look at those too.
Alex Cunningham (Stockton North) (Lab)
The Secretary of State’s word will do little for the 40 skilled staff of the Metabrasive steel foundry in Stillington in my constituency, which will close in May. So will he listen to the Materials Processing Institute and back its proposals for a materials catapult, which will provide productivity and innovation benefits for the production of metals, ceramics and other materials and promote our competitiveness and exports?
Sajid Javid
I am sorry to hear that that firm in the hon. Gentleman’s constituency may close. We should do everything we can to try to protect jobs like that, and certainly research has an important role to play. We are looking very carefully at that proposal and he will hear more shortly.
Amanda Milling (Cannock Chase) (Con)
Spartan Global Services in Cannock exports refurbished computers to businesses across the globe. Can my right hon. Friend outline what is being done to reduce barriers to exporting, and to encourage more businesses like Spartan to take up the opportunities that exports offer?
Sajid Javid
My hon. Friend has raised this issue before, and I know that many companies in her constituency could do a lot more if we had fewer barriers. One suggestion is that we should get on with the Transatlantic Trade and Investment Partnership deal between the EU and the US. That would be the world’s largest free trade agreement. It would be worth some £400 to each household, and it would certainly help companies like the one in her constituency export more to one of the world’s largest markets.
Ms Margaret Ritchie (South Down) (SDLP)
Will the Secretary of State have immediate discussions with his Cabinet colleague in the Department for Environment, Food and Rural Affairs regarding the need to ensure the export of pork from both Britain and Northern Ireland to Taiwan, which has been awaited since August 2015?
Sajid Javid
That is a very important issue. Food and drink is our biggest manufacturing industry, but a lot more can be done in terms of exports. I know that my right hon. Friend the Secretary of State for Environment, Food and Rural Affairs has taken this very seriously, and I will particularly look into the issue the hon. Lady has raised about Taiwan.
Mr Nigel Evans (Ribble Valley) (Con)
We have a massive trade deficit with the European Union but the balance is positive with the rest of the world. We have just celebrated Commonwealth Day. A relatively small amount of our trade is with the Commonwealth. As my right hon. Friend is refocusing his Department, will he embark on project Commonwealth so that we can export far more of our goods to our cousins abroad?
Sajid Javid
My hon. Friend is right about trying to do more with the Commonwealth. The links are strong and there has been a focus for many years on some countries, such as India. We have seen a big increase in exports and tourism, but there is always more we can do, so it is right to raise the issue.
Mr Speaker
A most extraordinary noise has just radiated around the Chamber. Is it a singing tie? That is very irregular. [Interruption.] No, it was not the Minister.
Sajid Javid
If I heard the hon. Gentleman correctly, he suggested that the SNP should get the credit for the rise in exports in Scotland. Scottish businesses have worked very hard to achieve that and I do not think anyone would credit the SNP with that. Where Government policy is important is in making sure that we have a stable, strong economy, and that is down to the economic plan that comes from Westminster.
Alison McGovern
3. What assessment he has made of trends in the level of lending to small businesses by (a) banks and (b) alternative finance institutions in the last five years.
The Secretary of State for Business, Innovation and Skills and President of the Board of Trade (Sajid Javid)
I was about to get a warning. Maybe I will get it in a moment. The stock of bank lending to small businesses fell after the financial crisis but is now recovering, with four consecutive quarters of positive lending. Peer-to-peer business lending is becoming increasingly important as an alternative to bank finance. It has grown from £20 million in 2011 to nearly £1.5 billion in 2015.
Alison McGovern
I am sorry, Mr. Speaker. Given the Secretary of State’s proximity to the Chancellor, perhaps he does not need a warning. Perhaps he has already given a warning about the Budget, as he probably knows that in the north-west we have seen just half the business investment in SMEs of that in London. Clearly, something has gone wrong with the long-term economic plan if we are not seeing rebalancing, so what conversation have the Secretary of State and his Ministers had with the Treasury about its attack on other financial institutions—for example, building societies?
Sajid Javid
The hon. Lady is right to raise the importance of credit throughout every region of the UK for everyone who thinks a vibrant growing economy is important. We talk regularly with the Treasury about these issues—for example, about the work we do through the British Business Bank, which has provided more than £2.4 billion of financing over the past four years, helping some 40,000 businesses, many of them in the north-west.
Andrew Bridgen (North West Leicestershire) (Con)
When people take the decision to start their own business, it is on the back of a great idea or they have skills which are useful, but for most people turning a great idea or skills into a business requires expert advice. What steps is the Secretary of State taking to ensure that that advice is available to potential entrepreneurs?
Sajid Javid
First, I know my hon. Friend speaks with experience. He is a very successful businessman and no doubt he has talked to many businesses about this. One of the ways we try to help is through the growth hubs. We have made sure that every local enterprise partnership in England has a growth hub and we have increased the financing that goes into that, so locally tailored advice is available to local companies.
Stephen Metcalfe (South Basildon and East Thurrock) (Con)
4. What discussions he has had with the Secretary of State for Culture, Media and Sport on improving access to broadband for businesses.
Richard Graham (Gloucester) (Con)
5. What estimate he has made of the UK’s balance of trade in services.
The Secretary of State for Business, Innovation and Skills and President of the Board of Trade (Sajid Javid)
The balance of trade in services has increased from a surplus of £54.3 billion in 2010 to a surplus of £88.7 billion in 2015.
Richard Graham
The Secretary of State’s answer highlights the fact that, while exports in goods are vital, especially to manufacturing cities such as Gloucester, our surplus in services might be more vulnerable if we leave Europe. What assessment has he made of sectors such as insurance and investment managers, whose businesses are passported across Europe, and other service sectors, such as advertisers, accountants, animators, designers and film producers?
Sajid Javid
My hon. Friend speaks with experience: he is a distinguished former pension fund manager—a very important service that the UK industry provides. He is right that the EU’s financial services passport means that financial services firms authorised in the UK can provide their services across the EU, without the need for further authorisations. That is, of course, a significant benefit that they receive. Services represent almost 80% of our economy, and access to the world’s largest single market helps them to create thousands of British jobs.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
The Secretary of State must know that however good the growth in services exported from this country is—and we all applaud it—it must go hand in hand with an increase in manufacturing. Is he not worried that Syngenta—one of our leading agritech companies—will be taken over by ChemChina, backed by the Chinese Government? What will that do for our competitiveness and our supply chains? Why will he not meet a cross-party group of MPs that has begged to meet him?
Sajid Javid
Of course the hon. Gentleman is right about the importance of manufacturing in our economy, which is why it has increased in terms of output, employment and value since 2010. The company he mentions, Syngenta, has itself said that there should be no change in its footprint in terms of employment—in fact, we expect that to increase. Also, when it comes to foreign investment in British industry, I see that as a vote of confidence. Since companies such as Jaguar Land Rover have received foreign investment, employment has gone up threefold, and that is great for British manufacturing.
Mr Philip Hollobone (Kettering) (Con)
Our strong performance in services is still not enough to offset the difficulties we are having with our trade with the European Union, with which we now have an annual trade deficit of £62 billion. Given that non-EU trade exports have increased by 30% since 2010, is not it clear that the best future for this country is to be outside the European Union, so that we can negotiate free trade agreements with China, India, Brazil, the Commonwealth and the rest of the world?
Sajid Javid
I agree with my hon. Friend that it is clear that trade agreements can lead to more trade with those countries and reduce any other barriers. Through the EU we have access to over 50 trade agreements at the moment, whereas other countries such as the US or China have 14-odd trade agreements. I agree that we need to focus a lot more on trade, but the trade agreements to which we have access today are very valuable in terms of global trade, not just with the EU.
George Kerevan (East Lothian) (SNP)
Is the Secretary of State aware that productivity in our flagship service industry—financial services—has fallen behind similar productivity in the United States, in France, and even in Italy? Can he explain that? Is it something to do with the regulations that his Government have imposed on financial services?
Sajid Javid
I am not sure whether it is to do with regulations, because all the other markets that the hon. Gentleman mentions have also had to look at regulations after the financial crisis. However, he rightly highlights a general productivity problem across British industry in all sectors, where we are some 25 points behind with our G7 competitors. That is why we have a productivity plan, working with industry to turn that around.
Rehman Chishti (Gillingham and Rainham) (Con)
6. What steps he is taking to protect consumers from faulty and unsafe products.
Karl MᶜCartney (Lincoln) (Con)
10. What recent steps he has taken to promote regional growth in the Midlands.
The Secretary of State for Business, Innovation and Skills and President of the Board of Trade (Sajid Javid)
I continue to promote the long-term economic plan for the midlands engine, which aims to add an extra £34 billion and 300,000 jobs to the midlands economy by 2030. Just last week, I opened a new factory and also an innovation centre in the midlands.
Craig Tracey
In National Apprenticeship Week, we can all welcome the creation of over 2.6 million apprenticeships since May 2010, including 500,000 in the midlands and 5,140 in my constituency of North Warwickshire. Will the Secretary of State join me in welcoming a report published today by Universities UK? It shows the potential for new degree apprenticeships to help to meet the needs of employers in my constituency and across the whole country, and to encourage more universities to deliver these important degree apprenticeship courses.
Sajid Javid
Yes, I will. Let me congratulate my hon. Friend on the hard work he has already put in during his short time in his new role. He will know that there has been an increase of 137% in apprenticeship starts in his constituency in the past five years. He is absolutely right to raise the importance of degree apprenticeships, because he knows this is about quality, not just quantity. I welcome the report from Universities UK today on this issue, because we will do everything we can to support more degree apprenticeships.
Karl MᶜCartney
My constituents in Lincoln, along with the people of Lincolnshire, are grateful for the Government’s investment so far in diverse areas such as our transport infrastructure and apprenticeships, which are delivering clear business benefits. Will my right hon. Friend advise me whether I should be hoping for any further investments, like those that he and I have previously discussed with our right hon. Friend the Chancellor of the Exchequer, in the Budget tomorrow?
Sajid Javid
My hon. Friend is an incredibly powerful advocate for the people of Lincoln. His energy is legendary: he is like the Duracell bunny. Let me congratulate him on the success he has already achieved on behalf of his constituents in securing local investment. Like him, we are all waiting to see what the Budget holds.
Mr Speaker
I think that was intended as a tribute. It will doubtless be communicated by the hon. Gentleman to the good burghers of Lincoln the length and breadth of his constituency.
Lucy Allan (Telford) (Con)
T1. If he will make a statement on his departmental responsibilities.
The Secretary of State for Business, Innovation and Skills and President of the Board of Trade (Sajid Javid)
It is a busy week for the Department. We are in the middle of British Science Week, which will see millions of people attend thousands of events across the country. Yesterday, I helped to launch National Apprenticeship Week and met some remarkable young people learning the skills needed to do the jobs of tomorrow. Tomorrow, of course, is Budget day. We will hear from the Chancellor about our long-term plan to make Britain the best place in the world to start and to grow a business.
Lucy Allan
The Secretary of State will remember the several visits he made to my constituency, so he will be delighted to know that on Thursday this week the Telford International Centre is hosting a national apprenticeships show, including local employers Capgemini, Stadco and Juniper Training. Telford has had a dramatic fall in youth unemployment. Will he join me in congratulating Telford businesses, colleges and the many other people who have helped youngsters to get the first step on their career ladder?
Sajid Javid
I am pleased to see my hon. Friend is wearing an apprenticeship badge today to mark this important week. I recall fondly a number of visits to Telford and meeting local businesses. I join her in warmly congratulating those local businesses, colleges and training providers on the work they have done to boost apprenticeships, which are up 120% over five years in her constituency. That means thousands of young people being helped to achieve their full potential.
Ms Angela Eagle (Wallasey) (Lab)
It is National Apprenticeship Week, British Science Week, Global Consumer Day—and the Ides of March. Today, the CBI has released a survey showing that 80% of its members support the case that staying in the EU is best for jobs, growth and investment. They are right, are they not, Secretary of State?
Sajid Javid
The best outcome of the referendum for business, jobs and growth in Britain is that we remain. That provides us with the opportunities we need. The uncertainty of a leave vote would be the enemy of jobs and growth.
Ms Eagle
I thank the right hon. Gentleman for that response. It was not heard brilliantly on parts of his Back Benches. Is his lukewarm response for remaining not now irritating both sides of his divided party and damaging the Government’s case to remain in the EU? When the Prime Minister launched the Conservatives’ “in for Britain” campaign, the Business Secretary conveniently had a prior engagement, announcing that:
“with a heavy heart and no enthusiasm, I will be voting for the UK to remain a member of the European Union.”
He asserted that he would remain a “Brussels basher”, but is he not really increasingly seen in his own party as a Brexit betrayer? With 100 days to go to the EU referendum, does the overwhelming case for remaining in the EU not deserve a Business Secretary who can campaign with his heart as well as his head?
Sajid Javid
It is a shame that that is the best the hon. Lady can come up with. One would think she would want to make a positive case. I think she should focus on speaking to her own boss and asking him about the contribution he wants to make to this debate.
Andrea Jenkyns (Morley and Outwood) (Con)
T3. I was a comprehensive school girl who left school at 16, so social mobility is very important to me, and I am pleased to be involved in the new inquiry by the all-party parliamentary group on social mobility into getting people from diverse backgrounds into top professions. Will my hon. Friend tell me what steps the Government are taking to ensure that more people, regardless of their background, can secure further education or employment?
Craig Tracey (North Warwickshire) (Con)
T8. Like many in the House, I welcome the Chancellor’s moves to develop a northern powerhouse, but my constituents are also interested in the Secretary of State’s work to drive forward the midlands engine. Will he assure me that tomorrow’s Budget will contain welcome news for my constituents and people across the west midlands?
Sajid Javid
I can reassure my hon. Friend that the Government are absolutely committed to a long-term economic plan for the midlands engine, and he will know that I was involved in the launch of the midlands engine prospectus. We are looking for a £34 billion increase in the local economy and 300,000 jobs by 2030, which will benefit his constituents as well as mine.
Greg Mulholland (Leeds North West) (LD)
T4. I welcome the Minister’s reiteration last Wednesday of her and the Department’s view that they will abide by the will of the House of Commons regarding the pubs code, which currently includes an outrageous measure whereby tenants have to surrender the length of their lease for the market rent only option. To ensure that she abides by the will of the House, will she see that that measure is taken out at the final stage of drafting?
Andrew Griffiths (Burton) (Con)
The Secretary of State will know that the beer and pub industry in the west midlands employs 86,000 people in 5,000 pubs, has 124 breweries and contributes £1.3 billion in tax. Given his support for the brewing industry when he was in the Treasury, when he led the call for the duty cut, will he outline what his Department is doing to support the beer and pub industry—and will he pick up the phone to the Chancellor and ask him for another cut?
Sajid Javid
My hon. Friend has been an excellent advocate of that industry, helping it to grow and create thousands of jobs. He will have just heard from the Minister for Small Business, Industry and Enterprise, my right hon. Friend the Member for Broxtowe (Anna Soubry) about the Pubs Code Adjudicator, which I think is a very positive development. I have heard my hon. Friend loud and clear on the desire for a further cut, and I know he has made his representations to the Chancellor. When I was Economic Secretary to the Treasury, I recall getting a beer named after me—Sajid’s Choice, which was a fine brew—so there are many reasons to cut beer duty.
Michelle Donelan (Chippenham) (Con)
Does the Minister agree that we need to give more training support to small businesses to encourage them to hire women who are re-entering the labour market after significant career breaks post-children?
Sajid Javid
I absolutely agree with my hon. Friend. We are focusing strongly on the issue, and we are working on it with the Women and Equalities Minister. We want to ensure that women have the same opportunities as men to re-enter the work force, and we will treat that as a big priority.
Oral Answers to Questions
Sajid Javid Excerpts(8 years, 10 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
John Pugh (Southport) (LD)
1. What steps the Government are taking to ensure that the British automotive industry is able to develop and benefit from evolving technologies.
The Secretary of State for Business, Innovation and Skills and President of the Board of Trade (Sajid Javid)
The UK automotive industry is already a great success, but we want to make sure that it stays at the cutting edge. We are committing almost £l billion to help develop next-generation technologies. This will make the UK the go-to location for connected and autonomous vehicles, for example, and it will facilitate automotive research and development.
Sajid Javid
I am glad that the hon. Gentleman has raised the issue of driverless cars. Britain already leads in that area, and yesterday I announced some £20 million of awards. Green energy and greener cars are also important. That is why, in the spending review recently, we announced more funding for research from Government.
Mr Philip Hollobone (Kettering) (Con)
20. Will the Secretary of State confirm that since 2013, when the Prime Minister announced his intention to hold a referendum on our EU membership, foreign direct investment in the British automotive industry and new technologies has been at record levels, because foreign companies are confident that British cars will be well made, whether we are in the EU or outside?
Sajid Javid
Actually, I can confirm to my hon. Friend that not only has foreign investment continued across British industry, including the car industry, but the auto industry has just had a record year, with more than £64 billion of turnover and 80% of cars being exported. [Interruption.]
Mr Speaker
Order. Dr Hunt, you were not taught to behave like that at your very expensive public school.
Geraint Davies (Swansea West) (Lab/Co-op)
That was a very funny joke, Mr Speaker.
The Environmental Protection Agency in America is suing Volkswagen for installing defeat devices that cheat emissions testing in millions of cars. What work is the Secretary of State doing with manufacturers in Britain to ensure that such devices are not installed, so that we can look forward to a future of greener cars where all cars are properly tested at MOT and the public are safe in the knowledge that more and more people will not die unnecessarily from pollution?
Sajid Javid
That is a good question. It should be very clear to all companies that if they engage in such cheating or bad practices, the Government will crack down hard on them. We will work with our colleagues in the European Commission and elsewhere to make sure that all rules are applied. We in the Department for Business, Innovation and Skills are working on introducing real emissions testing, with the Department for Transport and colleagues in the European Union.
Michael Fabricant (Lichfield) (Con)
In the mid-’90s, I stood up in this Chamber and said that some day, there would be self-drive cars, and everyone thought I was mad. I am reliably told that by 2020, autonomous-drive cars will be available in the United Kingdom and elsewhere. Much of that work is being undertaken in Paddington by Nissan. When will my right hon. Friend visit Nissan and other British manufacturers, such as Jaguar Land Rover and Toyota, if he has not already done so, to talk to them about autonomous-drive cars?
Sajid Javid
I have had a lot of thoughts about my hon. Friend, but madness was not one of them.
I agree with my hon. Friend about the new technology of driverless cars, in which Britain is a world leader. Yesterday at MIRA, a world-class facility in Nuneaton, we announced £20 million of funding. That will fund some eight research and development projects in areas across the country, including in the midlands, and 14 feasibility studies. With work like that, his dream of a driverless car to carry him wherever he wants to go will come true by 2020.
Rachael Maskell (York Central) (Lab/Co-op)
2. What assessment he has made of the effect on businesses of the recent floods.
The Secretary of State for Business, Innovation and Skills and President of the Board of Trade (Sajid Javid)
We have made £50 million available to support flood recovery across the north of England following Storms Desmond and Eva, and we have already allocated £11 million to local authorities to support the 4,500 businesses impacted. Local areas also have the discretion to provide grants to any local businesses that have been affected.
Rachael Maskell
Floods have an impact on the entire local business community, which is calling for more support. At my business flood meeting in York, it called for a business recovery package, including help to maintain a customer base and to trade expediently. Will the Secretary of State look into that, and will he attend a roundtable with flood victims so that a full business recovery package can be put in place for the entire business community, not just businesses that were flooded?
Sajid Javid
The hon. Lady is right to raise this matter. Many businesses have been affected, and when something like this happens it affects the whole community. We are already looking into that. She will know that the money already made available can be used to support businesses in creative ways. On top of that, there is a £2,500 grant to help all businesses affected, and they can apply for a further £5,000.
John Stevenson (Carlisle) (Con)
A large number of businesses in Carlisle were affected by the floods. However, they affected not just businesses but the rugby club, the squash club, the tennis club and the cricket club in my constituency. Will the Secretary of State look at providing support for those organisations as well as for businesses?
Sajid Javid
My hon. Friend makes an important point about how such a disaster can affect the whole community, and he gives some excellent examples of that. Money has been made available to local authorities to provide such support for both businesses and others, and I will look further at the suggestions he makes.
Bill Esterson (Sefton Central) (Lab)
The Association of British Insurers puts the average cost of flood damage at £50,000 per business property, yet the average pay-out under the repair and review scheme has been just £1,666. That is well down on the £5,000 promised, with many businesses yet to receive a penny. In an Adjournment debate last week, we heard about the damage caused in Leeds during the last Parliament and the promises that have not been kept in relation to that. Will the Secretary of State make sure that the Prime Minister keeps his word that “money is no object” when it comes to support for businesses that have been hit hard by the recent floods?
Sajid Javid
Of course the Prime Minister will keep his word. It is partly for that reason that the Chancellor of the Duchy of Lancaster recently met the Association of British Insurers to discuss this issue, understand the scale of the problem and find out what more can be done. BIS officials have also met the ABI, which will make a difference. The hon. Gentleman may also be interested to know that, in the Enterprise Bill, we will bring forward measures later today to make sure that all businesses are paid on time by insurance companies.
Nigel Adams (Selby and Ainsty) (Con)
Many of the businesses in my constituency that were flooded are lessees and do not own their own property. They would like to avail themselves of the generous support available from the Government, but landlords may not want to engage with that system. I know one particular landlord who is not interested in Government support. What support can the Government offer to lessee businesses that are looking to them for such help?
Sajid Javid
My hon. Friend is right. In such circumstances, those businesses should of course be helped as well. We know that many of them are already applying directly to councils, to which we have provided funding. They are eligible for the £2,500 grant, and they can apply for the further grant of £5,000. They will also benefit from the three-month business rate holiday.
Fiona Bruce (Congleton) (Con)
3. What steps his Department is taking to support people who want to start their own business.
The Secretary of State for Business, Innovation and Skills and President of the Board of Trade (Sajid Javid)
We are taking clear action to help the steel industry. We are cutting electricity costs, tackling unfair trade, updating procurement guidance, introducing flexibility in emissions regulations and reviewing business rates. That is what the steel industry has asked for and what we are delivering.
Angela Smith
I thank the Secretary of State for that answer. The Foreign Secretary said of China the other week in this Chamber that
“it is through the prism of steel that their claims to be treated as a market economy are likely to be judged in the European Union.”—[Official Report, 12 January 2016; Vol. 604, c. 694.]
Equally, the Ministry of Defence has recognised the strategic importance of the steel industry with the support that it has given to Sheffield Forgemasters. When will the Secretary of State follow suit? In particular, when will he pull his finger out and start battling for British steel with companies such as EDF?
Sajid Javid
The hon. Lady may be interested to know that it was the Secretary of State who asked for an emergency meeting of the European Council to discuss this issue of unfair trade for the first time and to make sure that when the EU takes action, it does so appropriately and in a speedy fashion. The EU is considering the issue of market economy status. When it puts forward a proposal, we will take a careful look at it. Even if a country does have market economy status, that does not stop the EU taking action, as is shown by the examples of Russia and the US.
Stephen Doughty
As you are aware, Mr Speaker, I have concerns about a written answer that I received last week from the Ministry of Defence. It stated that
“the Ministry of Defence (MOD) does not hold a complete, centralised record of steel procurement for projects and equipment, either in terms of quantity or country of origin, over the past six years.”
Why on earth should we believe the Government’s promises on procurement when they do not even keep records in the Ministry of Defence, and what will the Secretary of State do about it?
Sajid Javid
We are the first country in the EU to take advantage of new procurement rules. When it comes to defence needs and other infrastructure projects, we should use British steel whenever we can. For example, the Queen Elizabeth-class aircraft carriers are 94% British steel—that is 77,000 tonnes. Last week I visited Crossrail, the biggest infrastructure project in Europe, and almost all of it is British steel.
David T. C. Davies (Monmouth) (Con)
22. Under current rules, steel companies pay the highest energy taxes in Europe. Those taxes are then used to subsidise wind farms, which are made from cheap imported steel. Does the Minister agree that our policy needs to change?
Sajid Javid
I agree about the importance of energy costs, and that is an issue that the steel industry has raised time and again. We had previously announced a system of compensating for part of the cost, but we went further after listening to the industry. We needed to make a change, and we have made a change, which is a full exemption.
Mr Iain Wright (Hartlepool) (Lab)
In her letter to me about procurement associated with Hinkley Point C, the Minister said that
“there are few companies globally that have the capacity to make the ultra-large forgings required for nuclear power plants. It is widely understood and accepted in the nuclear industries that the UK does not have the capacity.”
Given that Sheffield Forgemasters says that it does have that capacity, and that it has supplied such forgings to nuclear plants elsewhere in the world, has the Secretary of State asked the Minister what evidence was used to make that statement? Does he think it appropriate to scrutinise the rationale behind such a sweeping statement that dismisses world-class British steel manufacturers?
Sajid Javid
I do not think the hon. Gentleman is up to date on his information, and if he were to speak to Forgemasters—I am sure it would be more than happy to speak to the Chair of the Business, Innovation and Skills Committee—it would admit that it has challenges meeting all orders for different types of steel. The important point that we all agree on is that wherever possible, when steel can be supplied by British companies, that is exactly what we should use.
Hannah Bardell (Livingston) (SNP)
Last year we became aware of Tata Steel’s intentions to mothball two of its sites in Scotland at Dalzell and Clydebridge, with the loss of hundreds of jobs. Those two sites have a proud history and they are far from being, as the Small Business Minister shamefully described them, “bits and bobs”. Further job losses have recently been announced at Texas Instruments, and at every opportunity I and my SNP colleagues have pressed the Government to produce a coherent strategy for an industrial plan. Once more I ask the Secretary of State to bring that strategy for our manufacturing sector before Parliament.
Sajid Javid
As the hon. Lady will know, we work with many industries. I attend industry and sector councils, and we have strategies, including the metal strategy, of which I am sure she is aware. She will also be aware of the actions that we have taken, such as cutting energy costs, providing flexibility on EU emissions regulations, changing procurement guidance and looking at business rates, all of which will help the steel industry across the United Kingdom.
Kevin Brennan (Cardiff West) (Lab)
If the Small Business Minister is right about Sheffield Forgemasters, why was it so furious about her words? Why did it make clear that it could supply 80% of the components necessary for Hinkley Point C? Should she apologise to the House, or can the Secretary of State do that on her behalf? What explains the answer that she gave to Parliament—ignorance, or lack of faith in UK steel?
Sajid Javid
The Small Business Minister has absolutely nothing to apologise for, and she was accurate in her statement. As I did the hon. Member for Hartlepool (Mr Wright), I encourage the hon. Gentleman to speak to Forgemasters himself. As I am sure he agrees, whenever we can use British steel for defence purposes, it is important that we do.
The Secretary of State for Business, Innovation and Skills and President of the Board of Trade (Sajid Javid)
I was delighted to help launch the midlands engine prospectus in December, setting out our programme of action to deliver our long-term economic plan, which aims to add an extra £34 billion to the midlands economy by 2030.
Christopher Pincher
I am grateful to my right hon. Friend for his commitment. Excellent universities, a history of manufacturing and some world-class businesses make the midlands a great place to set up a business, but those businesses need to export more. Will he say what he is doing to help businesses—particularly manufacturing businesses, such as Invotec in my constituency—to do better business abroad?
Sajid Javid
In my hon. Friend’s constituency, UK Trade & Investment has provided support for some 250 businesses in the past years, including for companies such as Invotec, which have been given support to help export to India, Russia, Japan and other places. He will know that my noble Fried Lord Maude made a statement in the other place last week, which talked about the new whole-of-government approach to exports. My hon. Friend may also be interested to know that, later this year, I will lead the first-ever midlands business trade delegation overseas.
Tristram Hunt (Stoke-on-Trent Central) (Lab)
A key driver of any midlands engine will be Goodwin Engineering in my constituency. This is a world-class steel foundry business hit hard by the Government’s massive incompetence over steel policy. It is very keen for a swift decision to be made on the Swansea bay tidal lagoon. Can we have news on that decision and, more broadly, something approaching an industrial policy?
Sajid Javid
The hon. Gentleman can have news—but not today. These are the sort of decisions that we need to consider carefully. When it comes to major infrastructure, he will be pleased to know that the Government’s infrastructure plan involves over £90 billion and that we are going ahead with it.
Edward Argar (Charnwood) (Con)
One of the key drivers of regional growth in the midlands has been the success of new small businesses, which rely on getting access to telecommunications as swiftly as possible. Does my right hon. Friend share my concern about the potential impact on midlands growth due to the length of time some businesses have to wait for telecoms companies to connect them? Will he press those companies to sharpen up and speed up their act?
Sajid Javid
I agree wholeheartedly with my hon. Friend. As a midlands MP myself, I have met many businesses from my own constituency that have experienced the same problem. It is something that both BIS and the Department for Culture, Media and Sport have discussed with BT and others. Although there are examples of improvement, a lot more needs to be done.
Valerie Vaz (Walsall South) (Lab)
One hundred and twenty thousand companies in the west midlands are linked to the steel industry. Will the right hon. Gentleman say what steps he is taking to preserve those skills for future growth?
Sajid Javid
The hon. Lady is right to raise the issue of skills in that industry. The first thing is to do everything we can to help it. Of course, the crisis has inevitably led to job losses, but the measures I referred to earlier will help to protect some of those jobs. We are also talking to a number of companies in the supply chain to see what we can do with skills training to ensure that those skills are transferable.
Andrew Bridgen (North West Leicestershire) (Con)
I can assure the House that the midlands engine is firing on all cylinders, but it does need fuel in the tank. Will the Secretary of State confirm that more than £2 billion was raised in venture capital in the UK last year, which was up 50% on the year before?
Sajid Javid
My hon. Friend talks about venture capital and the importance of attracting more and more investment across the nation, and of course in the midlands, too. I am sure he would be interested to know that over the last four years, the gross value added of the midlands region has increased by 15% or £27 billion, while the number of jobs has increased by almost 300,000.
Rob Marris (Wolverhampton South West) (Lab)
The hon. Member for Tamworth (Christopher Pincher) asked about the creation of a midlands engine. I can assure the Minister that thousands of such engines are being built by Jaguar Land Rover in Wolverhampton, just outside my constituency.
The apprenticeship levy is very welcome, although there are still some kinks to be ironed out. Will the Secretary of State say a little more about how the Government will encourage the establishment of proper apprenticeships in the manufacturing industry?
Sajid Javid
Yes, Mr Speaker, in the west midlands the levy will lead to significant new investment in apprenticeships. Companies such as Jaguar Land Rover have welcomed that initiative, and intend to pursue it with gusto. We are also setting up a new standards board, which will be led by the industry. I think that is important, because it will ensure that everyone takes part and we secure the right skills outcome.
Mr Speaker
The east midlands have also been accommodated, as colleagues will have noticed.
Alex Cunningham (Stockton North) (Lab)
T1. If he will make a statement on his departmental responsibilities.
The Secretary of State for Business, Innovation and Skills and President of the Board of Trade (Sajid Javid)
Britain’s high-end manufacturing continues to lead the world, and 2015 was the most successful year ever for our aircraft industry, with delivery numbers up 44% since 2010. Jaguar Land Rover is now Britain’s biggest car maker; it produced nearly 500,000 cars last year, which was three times as many as in 2009. And just yesterday, the latest figures showed that manufacturing output grew once again in January. Britain’s high-end factories are working, more Britons are working than ever before and this Government’s long-term economic plan is working too.
Alex Cunningham
We are hearing that Lord Heseltine has a big plan for the redundant SSI steelworks site on Teesside. If so, what is it?
Sajid Javid
It is absolutely right that we look at all options to generate more employment in that area, and that is exactly what Lord Heseltine has been working on. He has been working with businesses and local business leaders, and I am sure that the hon. Gentleman would welcome that. I notice that his own constituency has seen a sharp fall in unemployment of more than 40% in the past five years under this Government, and it is those kinds of policies that we will continue.
Dr Andrew Murrison (South West Wiltshire) (Con)
T2. Despite progress having been made, many small businesses, particularly those in rural areas, are struggling because of poor broadband speeds. Does my right hon. Friend think that the time has come for Ofcom to consider splitting BT and Openreach or, if it feels that it cannot do that, refer the matter to the Competition and Markets Authority?
Sajid Javid
Many individuals and businesses share my hon. Friend’s frustrations and the concerns that he has raised about BT’s perceived lack of investment and that perceived conflict of interest. I take these issues very seriously indeed. It is of course right that independent regulators should look at this issue, but let me assure him that I have discussed this directly with the head of Ofcom. I will be looking very carefully at the findings of its review and if we need to take action, we will.
Ms Angela Eagle (Wallasey) (Lab)
Does the Business Secretary believe that the Google tax deal reached by his right hon. Friend the Chancellor is fair and proportionate?
Sajid Javid
I think it was a very important deal, not least because it leads to a change in behaviour. It sends out a message that if you do not pay your taxes properly and according to the rules, action will be taken.
Ms Eagle
Well, I am not sure from that answer whether the Business Secretary thought it was fair and proportionate, but at the weekend he said that it “wasn’t a glorious moment”, even though the Chancellor had hailed it as a success. Which is it? It cannot be both. Does the Secretary of State not understand how unfair this cosy sweetheart deal with a company that seems to regard paying its fair share of taxes as a voluntary activity must seem to Britain’s millions of small businesses that are now expected to do their tax returns quarterly and have no opportunity to meet Ministers 24 times to negotiate their own private little tax deals?
Sajid Javid
When the hon. Lady’s party was last in office, some companies were regularly getting away with 0% tax rates, but Labour took no action whatever. Since the change in Government in 2010, we have closed 40 of Labour’s tax loopholes, which has helped to generate an additional £12 billion in taxation.
Byron Davies (Gower) (Con)
T6. I know that the Secretary of State and his Department are working hard to support our vital steel industry, but may I ask him what specific steps the Government are taking to ensure the future sustainability of the Tata Steel plant at Port Talbot and to ensure that Welsh steel is used in Government projects and procurement?
Catherine McKinnell (Newcastle upon Tyne North) (Lab)
T3. The Government have set a target of trebling exports by 2020. Can the Secretary of State explain how delaying a decision on UK airport capacity supports that aim?
Sajid Javid
It is absolutely right that we make a decision on aviation capacity in the south-east, and the Government were right to appoint an independent panel to look at this. It has come back with its findings. It is right that we look carefully at those and we recently made a statement on that. There is no doubt that when the decision is made, it will be one of the contributory factors that will help us to achieve that target.
Several hon. Members rose—
Mark Menzies
I apologise to the Labour Front Benchers, too.
The backbone of the north-west economy is built around small and medium-sized enterprises, so will the Secretary of State outline what help his Department is giving to small businesses across the north-west?
Sajid Javid
My hon. Friend is right to talk about SMEs being the lifeblood of the economy in terms of the employment and growth that they produce. We have taken a number of measures, including cuts to tax and to regulation. Later on today, I will be opening the Second Reading debate on the Enterprise Bill, when we will announce a number of new measures.
Nic Dakin (Scunthorpe) (Lab)
T4. The welcome new procurement guidelines for steel are worthless unless they have an impact on procurement practice. What are the Government going to do to ensure that this is delivered properly? How will they ensure that all Departments and government contractors follow these guidelines? How will the Government assess their impact?
Andrew Gwynne (Denton and Reddish) (Lab)
T9. Has the Secretary of State read the report from the Centre for Cities, which shows that a large number of Britain’s towns and cities are low-skill, low-wage economies? What is he doing to ensure that there is joined-up thinking across Government to ensure that we tackle not just education and skills but the transport links to access those new jobs?
Sajid Javid
I have not seen that particular report, but now that the hon. Gentleman mentions it I will be pleased to take a look. He is right to identify skills as a key issue in helping to create jobs and increase productivity. That is why, for example, we have introduced the apprenticeship levy and are putting forward plans for that. It will make just the kind of difference that he is looking for.
Nadhim Zahawi (Stratford-on-Avon) (Con)
I thank the Minister for Skills for supporting the apprenticeship awards at Grosvenor House last week. We gave out awards to small and large businesses and to brilliant apprentices, as well. Would it not be great if next year we had awards for the public sector, with all the permanent secretaries at next year’s awards, after today’s Bill goes through the House, and if we saw the public sector really getting behind apprenticeships?
Tom Blenkinsop (Middlesbrough South and East Cleveland) (Lab)
With Hartlepool Tata, Hartlepool Caparo, Air Products, Johnson Matthey, SSI Redcar, Boulby Potash and oil and gas industry job losses, Teesside is being hit hard. May I ask the Minister to meet me and other Tees MPs to discuss the future of the SSI site? May I also tell the Minister for Small Business, Industry and Enterprise that between 1987 and 1992, in Redcar alone, the Tory party sacked 20,000 steel workers?
Sajid Javid
I am more than happy to meet the hon. Gentleman and any colleagues, and I have met him before, to discuss this important issue. He will know of all the action we have taken, and are taking, to help the steel industry. However, he makes it sound as if, when Labour were last in office—over 13 years—they actually helped the industry. Production halved, and the number of employees fell by thousands—that is Labour’s record. It is left to this Government to actually support the steel industry.
Several hon. Members rose—
Louise Haigh (Sheffield, Heeley) (Lab)
Will the Secretary of State confirm that, in a briefing on Friday to Department for Business, Innovation and Skills workers whose jobs are at risk in Sheffield, one of the main reasons given for closing their office was:
“because phones and computers don’t work”?
Is the Secretary of State, who is responsible for innovation, seriously saying that the Department responsible for sending people to space cannot find a way to communicate properly with an office 150 miles up the road? Will he now reflect on the way this farcical announcement was made and on the lack of empathy shown to those workers?
Sajid Javid
No one takes these decisions lightly. Of course, a number of people and their families are affected, and we need to do everything we possibly can to help. However, we have an obligation to taxpayers to make sure that we spend their money wisely, and that means making sure that all Government Departments are run efficiently and effectively. Even after this change, my Department will have more people—the vast majority of people—outside London, and that is the right thing.
Enterprise Bill [Lords]
Sajid Javid Excerpts(8 years, 10 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Secretary of State for Business, Innovation and Skills and President of the Board of Trade (Sajid Javid)
I beg to move, That the Bill be now read a Second time.
On my Christmas reading list was a book by Labour's policy adviser, Andrew Fisher. I am not going to throw a copy at the hon. Member for Wallasey (Ms Eagle), because I am sure that she already has a copy of her own.
Sajid Javid
I wonder, then, whether the hon. Lady agreed with one of the comments that Andrew Fisher made in his book:
“The sole focus of economic debate today seems to be about what leads to economic growth.”
“Why”, he asks,
“are we so obsessed with economic growth?”
In the blurb, the shadow Chancellor called it the best thing he has read in years. On the Government Benches we know why sensible people are obsessed with economic growth: it means more jobs, it means prosperity, it lifts people out of poverty, it pays for our health service and our schools, and it allows us to invest in the future of our nation.
We know that growth is not created by politicians or by civil servants. It is not delivered by Whitehall diktat, or by printing money, or by creating an ever-expanding public sector. Economic growth comes from one thing, and one thing alone: successful private businesses.
The role of Government is to create an environment in which businesses can thrive. So, while Labour’s policy chief dreams of handing taxpayers’ money to trade unions so they can buy out companies, this Government are taking action to back British business.
Margaret Greenwood (Wirral West) (Lab)
In November of last year the green investment bank announced it had raised £10 billion in green infrastructure investment in the last three years. At the time the Secretary of State said:
“As this milestone shows, the Green Investment Bank is going from strength to strength and is having a major impact supporting renewable energy projects across the whole of the UK.”
This, at the moment, is not a private company—
Sajid Javid
I have got the hon. Lady’s point, Madam Deputy Speaker. I will come on to the green investment bank, and she will see that, because I agree with her main point—I want to see it raise more money—we are setting it free.
We have cut corporation tax and red tape. We are devolving the power to cut business rates and have doubled small business rate relief. We have lifted nearly half a million employers out of national insurance contributions. We have supported more than 30,000 companies with start-up loans. And we have launched a five-year programme to help British businesses make the most of export opportunities around the world.
All this work is paying off. In 2016, Britain is home to more private businesses than at any point in its history—almost 5.5 million of them. Over the past eight years more than 600,000 people have made the courageous decision to become self-employed, many in highly skilled professions, but I want to do more.
Fiona Bruce (Congleton) (Con)
The Secretary of State is making a powerful speech about this Government’s support for the creation of businesses, particularly small businesses, which of course requires not only the energy of the individual entrepreneur, but the support of their family. Will the Secretary of State outline how the family impact test has been applied in developing this Bill?
Sajid Javid
My hon. Friend makes an important point about the support offered to successful businessmen and women by their families. Whenever we develop any of these policies, we will carefully consider the impact on families, and I hope my hon. Friend will see that that is indeed the case as I progress through my speech and we release more detail on the Bill.
As I was saying, 600,000 people have become self-employed over the past eight years, but we want to do more, because, for my sins, I am obsessed with economic growth. That is why I am proud to have introduced the Bill before the House today.
The Enterprise Bill will strengthen the UK’s position as one of the best places in the world to start and grow a business. It will cut the red tape that too often strangles growth. It will support investment in the skills that British businesses need to be competitive now and in the future. And it will help deliver the economic growth and security that benefits every single one of us in this country.
Toby Perkins (Chesterfield) (Lab)
For someone who is obsessed about supporting small business growth, the Secretary of State’s Bill shows very little ambition. Can he say a little more about business rates, because the level of business rates is one of the major barriers to small businesses? It also impacts on manufacturing firms and retailers. Can he tell us more about what he will do to reduce the business rate bill of small businesses?
Sajid Javid
The hon. Gentleman will know that we have already done a lot to cap business rates and slow their growth. We have an ongoing review of business rates at the moment, and there will be more information at the next Budget.
It sounds to me as if the hon. Gentleman does not agree with his own leader, who has proposed
“adding 2% to corporation tax—“[Interruption.]
Yes, it is a quote, and the quote continues: he wants to do that to fund a “lifelong learning service”. On top of this, he proposes
“increasing corporation tax…to fund maintenance grants.”
So perhaps the hon. Gentleman agrees with his leader, who wants to see business taxes increase.
Let me turn to deregulation. According to the British Chambers of Commerce, regulations introduced by the last Labour Government cost British businesses almost £90 billion. No doubt this contributed to Labour’s great recession, destroying thousands and thousands of jobs across the country. That is a staggering burden for any employer, but it is a particular problem for Britain’s millions of small businesses, because when people are running their own company they do not just have one job: they have to be a manager; they have to be an accountant; they are in charge of human resources and procurement; they have to issue and chase invoices, source new suppliers and arrange marketing and advertising. All that on top of the day job. There are not enough hours in the day as it is, and the last thing they need is the Government on their back, weighing them down with petty rules and regulations.
Caroline Flint (Don Valley) (Lab)
The Secretary of State talked about how this Bill will contribute to greater growth. Can he be a bit more specific? Will he itemise under the different clauses just how much growth he expects to see as a result of these proposals?
Sajid Javid
I respect the right hon. Lady, but I hope she understands how growth is generated by the private sector. The Government deregulate, cut taxes, get out of the way of businesses and set entrepreneurs free. She has to understand that we cannot just pass a law that will grow businesses. Perhaps she agrees with the leader of her party when he says he wants to restore clause 4 to Labour’s constitution; perhaps she thinks that is the way to help growth and help businesses?
One way in which we certainly do help businesses is through further deregulation. That is why in the last Parliament we scrapped £10 billion of Labour’s red tape. We have already committed to scrapping another £10 billion between now and 2020. But business owners have told us that the actions of regulators are just as important as the content of regulations. So this Bill will extend the deregulation target to include statutory regulators, and it will increase transparency with a new annual reporting requirement for regulators subject to the growth duty and regulators’ code. It will also extend the hugely successful primary authority scheme to give more businesses access to reliable, consistent regulatory advice. This will save them money, and give them the confidence they need to invest and grow.
The Enterprise Bill will also end the “Whitehall knows best” approach to the regulation of Sunday trading. We are a one nation Government and we want to see the benefits of economic growth being felt in every corner of our country. But no two parts of our great nation are identical. The needs and wants of a small rural community in the south-west may be very different from those of a bustling city in, say, the north-east. The people living and working in those communities understand them far better than any Minister or civil servant sitting in a comfy London office. So we will introduce amendments in this Bill to allow local authorities to decide whether to extend shopping hours in their areas. Central Government will not be dictating how to use this power. The decision will be entirely local, reflecting local preferences, shopping habits and economic conditions. If the people of Bromsgrove or Barking say they want to see longer Sunday opening hours, who are we here in Westminster to stand in their way?
Louise Haigh (Sheffield, Heeley) (Lab)
It is fantastic to hear that the Government’s policy is that Whitehall does not just know best, which is indeed what I thought the Government’s policy was before. Why then is the Secretary of State closing the BIS office in Sheffield and moving it to central London where, by default, decisions on investment will be much narrower and much more focused to central London, away from the so-called northern powerhouse?
Sajid Javid
First, the hon. Lady will know that no one makes this kind of decision lightly. The Government have a duty to spend taxpayers’ money wisely, and that is what we do with every single penny. She is quite wrong in her accusation that this will centralise decision making in London. Once the Department has completed its restructuring by 2020, there will be fewer people in London and the vast majority of officials who work for BIS will be outside London.
Ms Angela Eagle
The Secretary of State has just effectively announced that there will be changes to the Sunday trading rules. Why on earth did he not put them in the Bill? Why is he introducing them at this late stage?
Sajid Javid
The hon. Lady will know that we talked last year about our plans to change the Sunday trading rules, and we had a consultation, to which I am sure she has contributed. The Government’s intentions have been clear. It is a question of finding the right vehicle to make those changes, and they will be in this Bill by way of an amendment.
Andrew Griffiths (Burton) (Con)
May I draw the Secretary of State’s attention to a letter that I received from the owners of the Octagon Centre in Burton? The businesses in that centre are urging me to support this important initiative from the Government because they say that it will help their businesses and that they would employ more people as a result.
Sajid Javid
My hon. Friend is right to point out the economic impact of this measure. As I have said, it might not be right for every area but it is surely correct for each local authority to decide what is best for its area, and if that leads to more jobs and growth locally, that is exactly the reason why we should follow through on this policy.
If any of our friends in the Press Gallery have spent time freelancing, they will be all too aware of the problem of late payments—[Interruption.] There are friends up there. If they are not up there, they are listening somewhere else. I have heard of one writer, who may well be listening now, who says that he still has not been paid for copy that was filed two years ago. The most shocking aspect of this problem is just how common it is. In my six years as the Member of Parliament for Bromsgrove, I have been contacted by many dozens of local business owners who have been pushed to the brink by one thing: the failure of large corporations to pay up on time.
Toby Perkins
May I just take the Secretary of State back to the point about Sunday trading? I cannot remember a similar situation in which a Secretary of State has stood up and made a speech about a provision that is not even in his Bill but that he wished was in it. People are going to be voting tonight on the Bill’s Second Reading, and he is announcing measures that they are going to be asked to approve but which they might well be against, and which are not even in the Bill. Is not this entirely the wrong way to legislate?
Sajid Javid
We get this every day from those on the other side of the House. They are obsessed by process. They do not want to focus on the substance at all. They have no respect for the substance.
Ms Angela Eagle
The right hon. Gentleman is asking us to vote on Second Reading tonight on the substance of a Bill which, at the moment, does not contain anything about Sunday trading. We have not seen the response to the consultation; it has not been published. We do not know whether the Government are going to table an amendment or a new clause. He is expecting us to comment on something that we have not even seen, and that shows contempt for this House.
Sajid Javid
The hon. Lady has had plenty of time to consider the issue of Sunday trading and whether she supports the principle or not. There will be plenty of time to discuss that in the House. It will also be discussed and voted on in Committee, so there will be plenty of time for input. It would be far better if she and her party focused on the substance of the issues rather than on process after process.
Kevin Brennan (Cardiff West) (Lab)
On a point of order, Madam Deputy Speaker. Is it in order for the Secretary of State to come to the House in the full knowledge that he intends to amend the Bill and to ask Members of this House to vote on Second Reading on clauses that have not even been published? Is not that a gross abuse of power?
Madam Deputy Speaker
I think I have got the gist of the hon. Gentleman’s point of order—[Interruption.] Order. Of course it is in order for the Secretary of State to ask his officials to do that, but that is up to him. I think that we really ought to move on. This is a Second Reading debate and 28 Members are seeking to catch my eye—[Interruption.] Order. Let us move on.
Sajid Javid
Thank you, Madam Deputy Speaker.
When it comes to late payments, my Department leads by example. We pay more than 95% of invoices within five days, and more than 99% within 30 days. But many organisations are less scrupulous, including some in the public sector. The average British small business is owed almost £32,000 in overdue invoices. That is a huge sum, and for many it can mean the difference between success and failure and between keeping going for another year and throwing in the towel. However, it is not easy for a small business or sole trader to challenge a larger firm. They might not be happy, but they need that contract. They cannot afford to bite the hand that feeds them. That is not right, and it is not fair, and this Bill will do something about it.
Melanie Onn (Great Grimsby) (Lab)
On that point, is the Minister confident that none of those late payments is being made by the Government or any of their subcontractors to small businesses, some of which might be waiting for payment for 60 days or longer?
Sajid Javid
I am confident that, over the past five years, the Government have done a huge amount of work to ensure that central Government and parts of the public sector pay more promptly, but I also think that more work is required.
That is one of the reasons that we are establishing a small business commissioner with a remit to handle complaints by small businesses about payment-related issues with larger businesses. The commissioner will also have the resources to give general advice and information to assist small businesses with supply relationships and direct them to mediation services.
It is not just the late payment of invoices that is a problem. As we have seen all too graphically with the recent flooding, it is vital that insurance companies also pay out quickly. Doing so helps small businesses to help themselves and gets them back on their feet, but it does not always happen. Unnecessary delays by insurers can spell the end for vulnerable small companies, which hits employees, suppliers, the wider community and the economy. The Bill will create a legal obligation on insurers to pay up within a reasonable timeframe.
Insurance can protect many of a business’s assets from floods, theft, or fire, but at any company, the most precious asset is not the bricks and mortar or the stock in the warehouse. It is not even money in the bank. It is the skilled, dedicated workforce without which no business can succeed. Developing and growing our skills base is the key to unlocking increased productivity. It is the key to raising living standards and driving that all-important economic growth. That is why the Government have committed to 3 million new apprenticeships by 2020. We have also introduced a new apprenticeship levy on the very largest employers to help to pay for them. The Enterprise Bill will build on that success. It will introduce apprenticeship targets for public sector bodies in England. It will protect the apprenticeship brand. Unscrupulous providers will not be allowed to offer shoddy training, undermining businesses and letting down apprentices.
I am proud to say that the Bill will also create an institute for apprenticeships. An independent employer-led body, the institute will regulate the quality of apprenticeships and see that standards are driven by the needs of employers. As well as quality assurance and approval functions, the institute will have an advisory role on some funding allocations for apprenticeship standards. We will also be introducing amendments to give employers genuine control of apprenticeship funding through digital accounts as part of the digital apprenticeship service. Together, those measures will make it easier than ever for young people to access vocational training and, just as importantly, for businesses of all sizes to develop the skilled workforce they need to innovate, compete and grow in the years ahead.
Of course, it is much easier to achieve that growth if the taxman is not hovering over people’s every turn. I have already talked about how we have slashed corporation tax, ending years of punishing entrepreneurs for their success, but that is not the only tax issue facing Britain’s high streets. It is often said that small business owners are working for themselves, but because of flaws in the business rates system entrepreneurs can sometimes feel as though they are working for their local authority. We have started to tackle that by capping business rate rises. We know the appeals system also needs reform, so we are working with ratepayers to develop a modern, business-focused approach to local taxation. The Bill will further reduce the burden on businesses by applying the Government’s “tell us once” policy to business rates, and it will put in place provisions to pave the way for better information sharing between local government and the valuation office.
I am sure we all agree that local businesses are the heart of the communities they serve, and nowhere is that truer than in the great British pub. I assume that is one type of business all right hon. and hon. Members are familiar with—if they are not, they can always visit The Little Ale House in Bromsgrove, which I highly recommend. The Small Business, Enterprise and Employment Act 2015 required the creation of a pubs code. When enacted, the pubs code regulations will make life a little fairer for more than 12,000 tied pub tenants across England and Wales. We have just completed a consultation on those regulations and will publish the final version in time for the code to be in place from the end of May.
Many responses to the consultation raised an issue concerning the market rent-only option—the MRO. Specifically, they said that the eligibility of a tenant to choose the MRO at the point of rent assessment should not be contingent on the rent being increased. Good government is all about listening and responding positively. Clearly, that proposal would have had an effect we did not intend, so I am happy to announce that we will be accepting the argument regarding the MRO. Members in the other place tabled amendments to the Bill on that issue. Obviously, we now accept their intent, and we will be tidying them up in Committee.
Charlotte Leslie (Bristol North West) (Con)
I am sure that, if my right hon. Friend is getting the rounds in, we will be very happy to join him at his local pub. As he knows, I have been a strong advocate for a pubs code and pub company regulation, which are very long overdue. I therefore welcome the MRO extension and urge him to continue working with our pubs, which are the enterprise heart of our country, to see how that affects them and to make sure they keep their place as that heart.
Sajid Javid
My hon. Friend rightly says we should always look to see what more we can do to help the pubs in our community. Perhaps we can welcome this measure in The Mouse in her constituency, which is a very fine pub.
Andrew Griffiths
As somebody who opposed the initial proposal for the MRO legislation, I welcome the constructive way in which the Minister and the Government have worked with all sides to find a solution. The key to pubs’ futures is investment in their estates, so I welcome the Government’s recognition that that is most important.
Sajid Javid
My hon. Friend is correct about that. We want to see more and more investment in our local pubs, and I hope that these measures, taken together, will help to achieve just that. Let me also take this opportunity to commend him for the work he has done for pubs ever since he joined this House, not just on this code, but the huge amount of work he did to get the first cut in beer duty in almost 50 years.
Lady Hermon (North Down) (Ind)
The Secretary of State began with the words, which I endorse, about being a one nation Government. The Wetherspoon chain, whose interiors I am not familiar with, has 10 pubs in Northern Ireland and also believes that the United Kingdom is one nation. Does he believe that the pubs code should extend to Northern Ireland, where that chain operates pubs?
Sajid Javid
The hon. Lady raises an important point about the pubs code, specifically wanting to know whether we can apply it to Northern Ireland. I will discuss that with my Northern Ireland counterparts to see what can be done and to review what is currently being done to see whether there is any way we can assist.
The Opposition have a renewed enthusiasm for seizing control of the means of production, distribution and exchange. I think it is fair to say that Conservative Members do not share that enthusiasm, but we are committed to delivering the best possible value for money from those assets where the taxpayer retains an interest.
Last May, the Chancellor announced plans for a new company, UK Government Investments Limited, to better manage taxpayer stakes in businesses across the economy. This Bill contains a provision on UKGI, ensuring that the necessary funding powers are in place so it can carry out its vital work. That will include overseeing the sale of government assets in a way that will benefit the taxpayer—that will include the sale of the UK Green Investment Bank.
Established in the previous Parliament to address a failure in the market, the GIB has demonstrated to the wider world that investment in green projects makes good business sense. In fact, that bank has proved so successful that it has outgrown the need to be financed by the taxpayer. Moving the bank into private ownership will give it access to a much greater volume of capital, mobilising more investment and getting more green projects financed. The Bill contains provisions that will ensure that that move to the private sector can take place effectively and transparently. That will mean the GIB can continue to go from strength to strength, delivering its ambitious green business plan. It is that expertise and that green business plan that private investors will be buying into. As the name suggests, green investment is what the Green Investment Bank does—it is what has made the bank such a success. No sensible investor would look to change that.
Melanie Onn
Investor confidence in the UK renewables industry is at a record low. Does the Minister really think that selling off the GIB sends any signal other than that the Government are stepping away even further from the renewables industry?
Sajid Javid
I will come on to one of the measures we will put in place to make sure that the GIB keeps its mission—something the bank itself has come forward with—but I do really think this move will mean more green investment, because the bank is restricted by being on the Government’s balance sheet. If we can take it off that, it will have its own freedoms and ability to raise capital, whether equity or debt, and that will lead to more investment.
Huw Irranca-Davies (Ogmore) (Lab)
I wish to ask the Minister a legal and technical point. Did he and other Ministers challenge the advice they received about retaining even a minority share? Would that approach in any way compromise the bank’s ability not only to retain its green credentials, but to borrow openly and thrive and prosper, as we all want? Have they just accepted the one piece of advice they have been given, or have they challenged it, asking whether they could retain a minority stake?
Sajid Javid
The hon. Gentleman raises an important issue, and what I am about to come on to perhaps addresses some of the concerns. Similar concerns were raised in the other place, as I am sure he was aware. The GIB will create a special share, which will ensure that its green mission is guarded by an independent party once the bank is sold, and that share will be put in place without legislation. Mandating that in legislation is entirely unnecessary and it is unlikely to work, but the GIB has assured us that that will happen.
Ms Angela Eagle
The Minister will know that a new clause in the other place tried to mandate the green target and focus of the bank. Is he saying in what he has announced today that the Government will be taking that clause out of the Bill and replacing it with something else?
Sajid Javid
I am well aware of that clause, but what I am saying is that it is no longer necessary as the same objective can be achieved if the GIB puts in place a special share that will guard its mission, and that share will be held by an independent party.
Ms Eagle
I thank the Secretary of State for giving way again, and this is an inevitably technical bit of the Bill. Has the Office for National Statistics approved this change and will it accept it for the purposes that the Government intend? In other words, will the GIB’s assets be on or off the Government balance sheet?
Sajid Javid
The ONS does not need to approve anything that the Government do, but I am comfortable that the structure I have just mentioned allows the Government to meet their objectives for the GIB.
Huw Irranca-Davies
I thank the Secretary of State for his generosity in giving way and regret that I will not be able to speak at length today. It will be interesting when the Bill goes to Committee. The cross-party Environmental Audit Committee, which, until recently, I chaired, made several recommendations, the detail of which I cannot go into because of the time constraints. One was:
“The Government should provide an evaluation of whether a ‘phased approach’ involving alternative recapitalisation options would be possible. This could allow for greater consultation, transparency and market testing on the form of any eventual privatisation.”
Is the Secretary of State open to alternative options being proposed in Committee or not?
Sajid Javid
I am aware of the Committee’s recommendation. Some of the work that I have just announced that will be done by GIB will help to meet some of those concerns. I will not pretend that all the Environmental Audit Committee’s recommendations will be met, but I hope that the hon. Gentleman is reassured that we have considered them carefully and that as we proceed with the Bill we will take many of those issues into account.
Sajid Javid
I need to plough on, because a number of hon. Members wish to speak.
Finally, the Bill will bring the public sector into line with private sector best practice on exit payments. Too many public sector fat cats are handed six figure pay-offs when they leave a job, which are often little more than a reward for failure. That is an insult to the hard-working taxpayers and business owners who finance them. The Enterprise Bill will end that practice.
Jim Shannon
I apologise that I was not in the Chamber when the Secretary of State referred to Sunday trading and the hours that workers would have to work. I understand that, according to a Populus poll, 66% of the British public said that they were against any changes to Sunday trading and 91% of people who work in shops do not want any change either. Will the Government assure us today that there will not be any changes in the Bill to Sunday opening times ?
Sajid Javid
I can clarify that the Government will not mandate any part of the UK to extend Sunday trading hours. We will devolve the power to local authorities so that they can make that decision on behalf of their local community.
When Napoleon called Britain a nation of shopkeepers, he—[Interruption.]
Madam Deputy Speaker
Order. We have had points of order on Sunday trading and if the hon. Gentleman wants to make a point of order at the end of the debate, I am perfectly happy for him to do so, but for now we must move on with the debate. We are getting bogged down in this one issue. The hon. Gentleman has his name down to speak, and I will happily call him, and he can also make an intervention, if the Secretary of State wants to take it, but these are not points of order.
Sajid Javid
When Napoleon called Britain a nation of shopkeepers, he meant it as an insult, but I see it as a badge of honour. I grew up above the family shop and I saw for myself how hard my parents worked day and night, seven days a week, to make their business a success. It takes a special kind of dedication to build something like that from scratch and to keep it going for 30 years or more. Before becoming an MP, I spent two decades at the other end of the business spectrum, working for some of the world’s largest multinational companies. For as long as I can remember, I have been surrounded by people who have created, managed and grown successful private businesses. When they create businesses, they create jobs. They create prosperity. They create opportunity.
Businessmen and women are the heroes of Britain’s economic recovery and whether they are running an international corporation from Canary Wharf or a one-woman start-up from a kitchen table, they deserve our respect and our support. The Enterprise Bill gives them all that and more and I commend it to the House.
Higher-level Skills
Sajid Javid Excerpts(8 years, 11 months ago)
Ministerial CorrectionsRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)
Further education colleges are vital for apprenticeships in engineering and construction, in which there is an acute shortage of skills across the country. What assessment has the Secretary of State made of the cuts in funding to FE colleges in terms of delivering this much-needed agenda?
Sajid Javid
I am surprised that the hon. Gentleman is talking about cuts in FE spending. I know that is what Labour was scaremongering about just a few weeks ago, but we have actually protected the adult education budget in cash terms, we will double spending on apprenticeships by 2020 and we have extended the availability of advanced learner loans. Taken together, this will mean a 35% real increase in FE spending by 2020 compared with this year.
[Official Report, 15 December 2015, Vol. 603, c. 1383-4.]
Letter of correction from Sajid Javid:
An error has been identified in the response I gave to the hon. Member for West Bromwich West (Mr Bailey) during Questions to the Secretary of State for Business, Innovation and Skills.
The correct response should have been:
Sajid Javid
I am surprised that the hon. Gentleman is talking about cuts in FE spending. I know that is what Labour was scaremongering about just a few weeks ago, but we have actually protected the adult education budget in cash terms, we will double spending on apprenticeships by 2020 and we have extended the availability of advanced learner loans. Taken together, this will mean a 30% real increase in FE spending by 2020 compared with this year.
Adult Skills (Funding)
The following is an extract from Questions to the Secretary of State for Business, Innovation and Skills on 15 December 2015.
Barbara Keeley (Worsley and Eccles South) (Lab)
7. What steps he plans to take to make the efficiencies and savings in adult skills set out in the “Spending Review and Autumn Statement 2015”.
Oral Answers to Questions
Sajid Javid Excerpts(9 years ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Karl MᶜCartney (Lincoln) (Con)
1. What steps he is taking to support higher-level skills in further education.
The Secretary of State for Business, Innovation and Skills and President of the Board of Trade (Sajid Javid)
I am sure the whole House will want to join me in sending its best wishes to Major Tim Peake, who successfully blasted off towards space just 30 minutes ago. [Hon. Members: “Hear, hear.”]
We are reforming technical education and establishing clear routes into higher-level skills and employment. We are spending £2.5 billion on apprenticeships—double the amount in 2010—and £1.5 billion on adult skills, growing degree and higher apprenticeships and establishing specialist colleges.
Karl MᶜCartney
I join the whole House in sending the Secretary of State’s good wishes to our fellow countryman.
Under the Conservatives, Lincoln’s improved educational map offers the young people of Lincoln myriad—nay, a plethora of—opportunities. Does the Secretary of State agree that prioritising funding for young adults, the low-skilled and those actively looking for work is the right thing for a Conservative Government to do?
Sajid Javid
I absolutely agree with my hon. Friend, who I know cares passionately about skills for young adults. He will be pleased to know that we rightly prioritised spending on further education in the recent spending review, which will enable colleges, such as Lincoln college in his constituency, to offer more to young people.
Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)
Further education colleges are vital for apprenticeships in engineering and construction, in which there is an acute shortage of skills across the country. What assessment has the Secretary of State made of the cuts in funding to FE colleges in terms of delivering this much-needed agenda?
Sajid Javid
I am surprised that the hon. Gentleman is talking about cuts in FE spending. I know that is what Labour was scaremongering about just a few weeks ago, but we have actually protected the adult education budget in cash terms, we will double spending on apprenticeships by 2020 and we have extended the availability of advanced learner loans. Taken together, this will mean a 35% real increase in FE spending by 2020 compared with this year.[Official Report, 5 January 2016, Vol. 604, c. 1-2MC.]
Dr Andrew Murrison (South West Wiltshire) (Con)
22. I welcome the removal of the cap on university places, but what assessment has my right hon. Friend made of the effect on further education colleges, such as Wiltshire college in my constituency, given that they are fishing from the same pool in terms of vocationally based diplomas and apprenticeships?
Sajid Javid
I welcome my hon. Friend’s question. We have seen an increase in that, especially in FE colleges that offer higher education courses, which is exactly the kind of diversity and growth we want.
Andrew Gwynne (Denton and Reddish) (Lab)
But as ever, it is smoke and mirrors with this Secretary of State. He knows that the Chancellor has announced an extra £360 million of savings from the adult skills budget, so will he come clean and tell us where those cuts will be made?
Sajid Javid
The Department will shortly issue a skills funding letter answering some of the hon. Gentleman’s questions, but perhaps he missed the point that I just made: the adult education budget is protected in cash terms, we will double spending on apprenticeships by 2020 and the FE budget will be up by the end of the Parliament in real terms.
David T. C. Davies (Monmouth) (Con)
2. What steps he is taking to ensure that the Government receives value for money from its funding of the Met Office.
The Secretary of State for Business, Innovation and Skills and President of the Board of Trade (Sajid Javid)
The Met Office plays a key role in our economy. A recent review of the public weather service assessed it as delivering up to £1.5 billion of annual value. As the shareholder for the Met Office, I and my officials regularly hold it to account and ensure it delivers value for money for the taxpayer.
David T. C. Davies
The BBC, no less, reported in 2012 that in 11 out of the previous 12 years predictions about increases in temperature had been wrong and that there had been a warm bias. Does the Secretary of State, as the shareholder, agree that he should be asking some tough questions at the board meeting about why we should be imposing expensive climate change policies on businesses and householders, when so often the predictions behind them are proved to be inaccurate?
Sajid Javid
I always like to ask tough questions, but I note there was flooding in my hon. Friend’s constituency recently, and the Met Office played a key role in helping the emergency services and protecting lives and property. Today is an opportunity to commend the Met Office for some of the work it does.
Andrea Jenkyns (Morley and Outwood) (Con)
3. What steps he is taking to promote trade opportunities for UK businesses.
The Secretary of State for Business, Innovation and Skills and President of the Board of Trade (Sajid Javid)
I chair the exports implementation taskforce, which is driving cross-Whitehall support for exports. In November, my noble Friend Lord Maude launched the five-year Exporting is GREAT campaign, which promotes real-time global export opportunities to business.
Andrea Jenkyns
In November, I hosted an event in my constituency with the China-Britain Business Council to which I invited small businesses to come and find out more about trading with China. The all-party parliamentary group on China is aiming to help 50 Members to organise similar events. Can my right hon. Friend tell me how his Department plans to make good use of our new trading relationship with China to help small businesses expand into these vital global markets?
Sajid Javid
Let me commend my hon. Friend on her efforts to encourage businesses in her constituency to export more to China. While exports to China have doubled in the last five years, there is a lot of potential and a lot more that we can do. The recent visit by the Chinese President helped to highlight that, and the effort that my hon. Friend is making with UK Trade & Investment, the China-Britain Business Council and others provides an example to us all.
Nic Dakin (Scunthorpe) (Lab)
What steps has the Secretary of State taken since the steel summit to increase trade opportunities for the UK steel sector?
Sajid Javid
The hon. Gentleman makes an important point. The more we can export of higher-value steel products, the more we can help. We have been discussing this with UKTI and steel producers. We are coming up with a plan, and this will certainly feature in the trade meetings we have in due course.
Amanda Milling (Cannock Chase) (Con)
Next month, I will be jointly hosting an event with UKTI to encourage more local Cannock Chase businesses to consider exporting. Will my right hon. Friend outline what the Government are doing to encourage new businesses to export?
Sajid Javid
I can talk about a number of initiatives, including the Exporting is GREAT website and the roadshow that will visit constituencies up and down the country. There is obviously also the work that UKTI is doing. Most recently, I helped to launch the midlands engine scheme, which I know my hon. Friend will welcome. We released more money to help that region with exports, including a midlands engine roadshow.
Ms Margaret Ritchie (South Down) (SDLP)
As part of the work of the export implementation group, will the Secretary of State explore with the Secretary of State for Environment, Food and Rural Affairs all options to access new markets for all our farm produce in north America and south-east Asia?
Sajid Javid
Absolutely. The hon. Lady makes an important point. I know that the Secretary of State for Environment, Food and Rural Affairs has been taking this matter very seriously. One thing we have done recently is to move some of the UKTI resources into my right hon. Friend’s Department so that there is better co-ordination.
Mr Peter Bone (Wellingborough) (Con)
I recently talked to a senior Indian businessman and asked him how we could increase trade with India. He said that the one thing we could do was to leave the EU because of the restrictions. Will the Secretary of State, either as Secretary of State or personally, endorse his comment?
Sajid Javid
I spoke to a lot of Indian businessmen and women and many Indian students last week. There is certainly one area in respect of which we could certainly increase our exports to India, and that is education.
Kevin Brennan (Cardiff West) (Lab)
It is all very well, but it is not working, is it? The UK’s latest balance of trade deficit is widening. It was up to £2.4 billion in the last quarter. Exports of goods—[Interruption.] Perhaps the Minister for Small Business, Industry and Enterprise should have a little listen to this. Exports of goods from the UK actually fell last month by £700 million. It is a pity we cannot export spin, because the Government are very good at that. The “march of the makers” was very good, and now we have the “midlands engine”. What is the Secretary of State’s excuse for the Government’s dismal record on the trade deficit?
Sajid Javid
The hon. Gentleman should not do down our world-class exporters. They are doing a fantastic job. Let me give him a few examples of what they can export. They can export wine to France, chocolate to Belgium and even boomerangs to Australia, although I fear that it is sometimes the same boomerang that keeps coming back.
Craig Tracey (North Warwickshire) (Con)
4. What steps he is taking to improve standards in apprenticeships.
Mike Kane (Wythenshawe and Sale East) (Lab)
5. What steps his Department is taking to support businesses which export.
The Secretary of State for Business, Innovation and Skills and President of the Board of Trade (Sajid Javid)
My Department is leading a cross-Whitehall work programme to support exports. For example, UK Trade & Investment connects UK businesses with export opportunities throughout the world. Over the next year, the UKTI export hub will travel around the country to give face-to-face assistance to first-time exporters.
Mike Kane
Feedback from businesses in my constituency suggests that there needs to be more support for small and medium-sized enterprises that export less than half a million pounds’ worth of goods. It suggests that once they are in the bracket of Government support, that support is short-lived, and is complicated by red tape. How would the Secretary of State respond to those businesses?
Sajid Javid
I agree that we should always try to do more to help small and medium-sized enterprises, in particular, to export more. The hon. Gentleman may know that I recently led one of our first regional trade missions, the northern powerhouse trade mission, to the far east. It included not only the Greater Manchester chamber of commerce, but companies such as Televic Education, which is in his constituency.
Tom Pursglove (Corby) (Con)
Fairline has a long history of exporting luxury boats across the world, but last week we heard the devastating news of 380 redundancies. While I hope that the administrator can identify a buyer, many of those employees have been laid off for significant periods with reduced pay. Will the Secretary of State do all that he can to ensure that the redundancy payments are expedited, especially given that Christmas is just around the corner?
Sajid Javid
This is, of course, a very difficult time for the employees who have been affected. I will certainly look into the position, and, during discussions with any potential buyer, I will ensure that export opportunities are highlighted.
David Simpson (Upper Bann) (DUP)
Do the Government foresee any long-term difficulties with the transatlantic trade agreement with the United States if the Americans decide to export agri-food products into the UK?
Sajid Javid
The hon. Gentleman will know that these discussions are still going on. By their very nature, they are complex, as two huge economic areas are involved, and so they will still take some time. Agri-products and all products of that nature need to be carefully looked at, so we have not reached a final point. It is worth remembering that once this deal is done, it can be worth up to £400 for every household in the UK each year.
Michael Fabricant (Lichfield) (Con)
In my former career, I exported broadcasting equipment to 48 countries worldwide—no thanks to the EU and its regulations. Is it not the case that people need the chutzpah to export, and although the Department can give as much help as it can, people have actually to get out there and do it, and be confident in doing so?
Sajid Javid
One thing we know is that my hon. Friend is not short of chutzpah, and I am glad he deployed it in his former career. He is absolutely right in what he says and he makes a key point: there is only so much the Government can do. We will do that and look for ways to provide even more support, but we want more and more companies to do everything they can, too.
Bill Esterson (Sefton Central) (Lab)
The Government’s so-called support for exports has seen grants converted to loans, and the sudden closure of the business growth service. Businesses supported by that service grew four times faster than other businesses, and the scheme created 83,000 jobs and added more than £3.5 billion to the national economy. As one BGS mentor says,
“the service’s closure doesn’t make sense considering its huge success and may prove detrimental to Britain’s economic health.”
What message does the closure of the BGS send to businesses that want to grow? Given the outstanding record of success, does the closure of the service not show a complete lack of understanding by this Government of what works on support for exports?
Sajid Javid
I am glad the hon. Gentleman has raised the issue of the BGS, because although it was a good fee-earner for consultants, there is very little evidence to show that it helped businesses to grow. [Interruption.] There is little evidence that it was the best way to help those businesses. The best way to help businesses is to make sure that we continue to have a growing economy—our economy is growing faster than those of all our rivals—so one thing he can do is support our long-term economic plan. We are also providing funding to 39 local enterprise partnerships—all the LEPs—through growth hubs, which they can use for localised support, including export opportunities.
Tommy Sheppard (Edinburgh East) (SNP)
6. What assessment he has made of the potential cost to businesses of implementation of the apprenticeships levy.
Kate Hollern (Blackburn) (Lab)
9. What discussions he has had on the effect of freezing the threshold at which graduates repay their student loans.
The Secretary of State for Business, Innovation and Skills and President of the Board of Trade (Sajid Javid)
I consulted on the proposal to freeze the student loan repayment threshold and received responses from a wide range of interested parties. I considered those responses, as well as a detailed impact analysis, before deciding to proceed with the freezing of the threshold.
Kate Hollern
Does the Secretary of State agree that if a commercial company had made a retrospective change to a contract in this way, costing students £6,000 in the process, there would likely be an investigation? Does he accept that, in doing so, he breached the trust of former, current and future students?
Sajid Javid
What I accept is that these were the right set of changes. I considered the responses to the consultation carefully. It is important that we strike the right balance between the interests of the students, making sure that all who have the ability have the opportunity to go to university, and the interests of the taxpayer, ensuring that we have an affordable, sustainable funding system. That is exactly what the changes bring about.
Andrew Bridgen (North West Leicestershire) (Con)
Despite the negative comments from the Opposition, can the Secretary of State confirm that this year record numbers of young people secured places at university, including record numbers of children from disadvantaged backgrounds?
Sajid Javid
My hon. Friend is right. That is true of England. We have seen a record increase to 382,000 people in the past year, and the number of students from disadvantaged backgrounds has gone up from 9.5% to 18.2% in the past five years. In Scotland we have seen a fall in the number of students because Scotland does not have a funding system that allows all who want to go to university to do so.
Wes Streeting (Ilford North) (Lab)
Given the report in The Independent on Sunday that Ministers in the Cabinet Office are desperately trying to find ways to increase the cap on tuition fees without proper debate and a vote in this House, can the Secretary of State confirm that any attempt to increase the cap on tuition fees will come back to this House for a full debate and vote? Can he also confirm that Government proposals in the autumn statement to extend tuition fees to nurses, midwives and students of allied health subjects will be subject to a proper debate and a vote in this House?
Sajid Javid
If the Government do decide to change the caps on tuition fees, there will, of course, be a debate in this House.
Paul Blomfield (Sheffield Central) (Lab)
Does the Secretary of State agree that retrospectively changing the terms of a contract is, in effect, mis-selling? Will he guarantee that in this Parliament there will be no further changes to either thresholds or interest rates?
Sajid Javid
The changes in question are entirely lawful. That is the advice that I received and it is perfectly consistent with the aims. Hon. Members should remember that the loans that are provided are on significantly better terms than those that are available commercially, and they achieve the objective of allowing all those who wish to go to university and who have the ability to do so.
Richard Arkless (Dumfries and Galloway) (SNP)
16. What steps he is taking to improve productivity in the economy.
The Secretary of State for Business, Innovation and Skills and President of the Board of Trade (Sajid Javid)
The Government are working hard to deliver the ambitious measures outlined in our productivity plan. We will drive productivity growth throughout the UK by encouraging long-term investment and promoting a dynamic economy.
Richard Arkless
Productivity has been the Achilles heel of this Government’s economic policy. Comparisons with G7 countries are poor, and the figures are even worse when compared with those for smaller to medium-sized and—dare I say?—independent countries. Is it not the case that the Government have been completely obsessed with austerity, and cuts and have completely neglected productivity, internationalisation and innovation, which is the fairer, more progressive way to raise tax receipts and reduce the deficit?
Sajid Javid
No, that is absolutely not the case. The hon. Gentleman is right that there has been a long-running productivity issue in our country under successive Governments. That is why we have published the ambitious productivity plan, dealing with issues such as skills, infrastructure and innovation. In the past year, we have seen a 1.3% year-on-year increase in output per hour, which is very encouraging.
Rob Marris (Wolverhampton South West) (Lab)
After five years in charge, it is time the Government took some responsibility. Why has productivity stalled for the past five years?
Sajid Javid
Because after 13 years of the Labour party being in charge, we had the biggest recession our country had seen in almost 100 years and it has taken time for the country to recover from that. As I have said, productivity is on the rise.
The Secretary of State for Business, Innovation and Skills and President of the Board of Trade (Sajid Javid)
The recent spending review delivered a strong settlement for many of the Department’s sectors, focusing support on areas that drive up productivity across the UK.
As we have heard, in the past hour Major Tim Peake has successfully blasted into orbit. This morning, the Government launched their space policy, which has achieved lift-off. Launched a short time ago in a museum that is not far, far away, the policy document shows that there are no limits to the UK’s ambitions in this area. To mix intergalactic metaphors, we want to boldly go to infinity and beyond, and our new policy will make it so.
Kate Hollern
As everyone knows, if we are to improve productivity, we need a good, strong education system. Will the Secretary of State give a categorical assurance that further education institutions, such as Blackburn College in my constituency, will not receive a real-terms funding cut as a result of the cash-terms freeze in adult and 16-to-19 funding?
Sajid Javid
I agree with the hon. Lady on the issue of productivity and the need to boost skills. There will be area reviews, so I cannot make a promise about any particular institution. However, as the Minister for Skills has said, there will be an increase in FE funding of more than 35% in real terms over the lifetime of the Parliament. In the hon. Lady’s constituency, there has been a 75% increase in apprenticeship starts during the past five years, which I am sure she welcomes.
Steve Double (St Austell and Newquay) (Con)
T3. The Eden Project in my constituency has run a successful apprenticeship in horticulture for the past year. Horticulturalists will become more and more important in meeting our increasing demand for food. What support can the Minister provide to promote horticulture as a worthwhile career for young people?
Ms Angela Eagle (Wallasey) (Lab)
May I start by adding our best wishes and congratulations to Major Tim Peake, who will be the first British astronaut to visit the international space station, ahead of his Principia mission? May I also take this opportunity to pay tribute to Helen Sharman, who was the first Briton to go into space? Let us all pledge to do our bit to inspire the next generation of scientists, engineers, mathematicians and explorers, in the same way that the moon landings inspired my generation.
Most businesses understand that nearly half our exports and 3 million jobs are linked to our membership of the European Union, and most believe, like I do, that it is in the interests of the UK to remain a member. Yesterday, the right hon. Member for North Shropshire (Mr Paterson) described the Prime Minister’s negotiations as “froth and nonsense” and the Prime Minister’s approach to his endless renegotiations has been described today as a “shambles”. Does the Secretary of State agree with UK business or with the Eurosceptics on his side of the House?
Sajid Javid
I associate myself with the hon. Lady’s comments about Major Tim Peake’s mission. It is an inspiration for us all and will hopefully get more young people interested in science.
On the European Union, I agree with almost all the businesses I have met because they want to see reform. They want to see changes in our relationship with the EU. They want the EU to be more competitive, they want to be able to make easier, quicker and deeper trade deals, they want a deeper single market and they want less bureaucracy. I am sure that the hon. Lady agrees with that too. That is exactly what we are fighting for.
Ms Eagle
We all want the UK to remain in a reformed European Union, but the Secretary of State’s Eurosceptic interests are well known. It is not like him to be so shy and timid about them, so let ask him more directly: is he prepared to resign from the Cabinet to fight for Brexit in the forthcoming referendum? If he cannot answer that question, how can he claim to be representing the interests of British businesses, which overwhelmingly want to stay in?
Sajid Javid
When it comes to divisions and resignations, it is her party that the hon. Lady should be worried about. I am prepared to fight for the reforms that I just outlined. Those are the reforms that everyone wants to see. We will fight for them tooth and nail, and then we will put the question to the British people and let them decide.
Nigel Huddleston (Mid Worcestershire) (Con)
T4. The Worcestershire growth fund will provide grants of up to £100,000 to businesses that are looking to expand and create jobs in Worcestershire. Will the Secretary of State join me in encouraging as many businesses as possible across Worcestershire to apply for the first round before the deadline this Friday?
Sajid Javid
In the short time that my hon. Friend has been a Member of Parliament, he has done a lot to champion small businesses in Worcestershire. I have seen that at first hand. The Worcestershire growth fund represents an excellent funding opportunity and I certainly join him in encouraging companies in his constituency and mine to apply.
Mr Gavin Shuker (Luton South) (Lab/Co-op)
T2. The illegal money lending team has commenced 330 prosecutions against illegal loan sharks and had £63 million written off for the most vulnerable in our communities. The decision to cut a third of its £3.6 million budget may not have crossed the Secretary of State’s desk at the time, but he has had plenty of time to review the decision and it will have a big impact, so why does he continue to dodge questions about this short-sighted cut?
Michael Tomlinson (Mid Dorset and North Poole) (Con)
T7. Will the Secretary of State update the House on the objectives of his recent visit to India, and how best local businesses in my constituency can tap into that market?
Sajid Javid
Yes, I will. The recent visit was to build on the momentum generated by Prime Minister Modi’s recent visit. Along with the Minister for Universities and Science, I went to India to promote getting more Indian students to come to the UK and study. I took 30 vice chancellors, including two from Dorset. That is just the kind of export that we want.
Ms Tasmina Ahmed-Sheikh (Ochil and South Perthshire) (SNP)
T8. Last week, The British Chambers of Commerce downgraded its forecast for overall GDP growth, citing weaker than expected trade. On Thursday, the Office for National Statistics released data, which showed that the gap between imports and exports grew from £3.1 billion in September to £4.1 billion in October. Will the Secretary of State update the House on the measures that he is taking to support export growth, given that his current plans are clearly not working?
Sajid Javid
The hon. Lady knows that there has been export growth in the past five years, including to some of the fastest growing markets in the world such as India and China, which came up earlier. We obviously need to do more, and that is why we have several measures in place, some of which I have mentioned. Those kinds of changes, such as increases in exports, are leading to falls in unemployment throughout the country and generating jobs, including a 53% decline in jobseekers’ allowance claimants in her constituency.
Nicola Blackwood (Oxford West and Abingdon) (Con)
T10. As Tim Peake blasts off today, we are reminded again of the exponential value of science funding well spent. For that reason, the Science and Technology Committee intends to continue our work of testing science spending plans. Will the Business Secretary reassure the House that the welcome increase in science funding will be ring-fenced? Will he accept our invitation to appear before the Committee in January to go over that in detail?
Sajid Javid
First, I accept the invitation—thank you very much. I also take the opportunity to commend my hon. Friend for her leadership of the Science and Technology Committee and the way in which has made the case so well for science. I can confirm that the ring fence is protected in real terms, not just cash terms. I also confirm our manifesto commitment to spend £6.9 billion on science infrastructure over the next six years. I am sure that she will agree that, this Christmas, batteries are included.
Andy McDonald (Middlesbrough) (Lab)
T9. I previously raised with the Secretary of State the Teesside Collective’s industrial carbon capture and storage ambitions, which will not only contribute massively to the climate change agenda, but secure existing industries and attract investment. In the light of the Paris agreement, will he meet me and industrialists leading that key initiative to explore how we might bring that important project to fruition?
Mr Iain Wright (Hartlepool) (Lab)
The Secretary of State mentioned simplifying and clarifying the business environment in this country, as well as paring back bureaucracy and identifying a further £10 billion reduction in red tape over this Parliament. Why did the autumn statement propose that small businesses should file tax returns four times a year, rather than annually? Will the Secretary of State outline how that helps small businesses to reduce their costs and burdens? To keep the “Star Wars” quotes going, “I’ve got a bad feeling about this.”
Sajid Javid
I have not heard that quote from “Star Wars”. [Interruption.] It is really important that we keep deregulating for small businesses, and that was achieved during the previous Parliament. As Chair of the Business, Innovation and Skills Committee, the hon. Gentleman knows that that measure is a net target, and because of the Enterprise Bill, and many other measures, I am confident that we will see huge net deregulation, running into the billions, for businesses over the lifetime of this Parliament.
Richard Fuller (Bedford) (Con)
The Business, Innovation and Skills Committee had a discussion this week about the phrase “industrial strategy”, which seems to mean all sorts of things to different people. I do not know what that phrase means, but I know that if I did, I would be against it. Will the Minister reassure the House that while he is Secretary of State, this Government will not go about picking winners?
Sajid Javid
Like my hon. Friend, the Government believe passionately in free enterprise. Free enterprise has motored this economy for decades, and it will continue to lift people out of poverty. We do have a strategy—it is called the long-term economic plan.
Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)
I am sure that the space Minister will praise the foresight of the previous Labour Government who established the UK Space Agency. Given that Tim Peake’s incredible mission is launching today, will she say a little more about how she will spread inspiration from that mission to a budding generation of new space scientists, engineers and astronauts, including in Cardiff South and Penarth?
Oral Answers to Questions
Sajid Javid Excerpts(9 years, 1 month ago)
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Michael Tomlinson (Mid Dorset and North Poole) (Con)
14. What assessment he has made of recent trends in apprenticeship starts.
The Secretary of State for Business, Innovation and Skills and President of the Board of Trade (Sajid Javid)
More than 2.4 million apprenticeship starts have been delivered in England since May 2010, but we are now going even further. We are committed to 3 million more over the course of this Parliament and we will ensure that they deliver the skills that employers and the economy need for continued growth.
Nicola Blackwood
We need to fill 1 million more digital jobs by 2020, not to mention finding 1 million more technicians and engineers. In that context, I am sure that the Secretary of State would agree wholeheartedly with the Science and Technology Committee’s first report, published yesterday, which states that cuts to science and innovation spending are a false economy. That spending is an investment, not a state subsidy, and it creates jobs, increases productivity and attracts inward investment. It is essential for science, technology, maths and engineering—STEM—apprentices seeking innovative British employers.
Sajid Javid
I commend my hon. Friend for her leadership of the Science and Technology Committee. She is absolutely right to talk about the importance of science, innovation and digital skills. She will know that I made a speech yesterday to Innovate UK’s annual conference, in which I set out new plans to boost science and innovation capabilities.
Sajid Javid
I am delighted to congratulate those who have started their apprenticeships in my hon. Friend’s constituency. There has been a 45% increase in apprenticeships since 2010, and we have ensured that they are high-quality paid jobs that last at least 12 months. The whole House should acknowledge the incredible work that has been done by the Minister for Skills, my hon. Friend the Member for Grantham and Stamford (Nick Boles) on apprenticeships. He has focused not only on quality but on quantity.
Michael Tomlinson
Cobham, a company in Wimborne in my constituency, takes on between 12 and 18 new apprentices each year, and there have been just under 700 new apprenticeship starts in my constituency in the past 12 months. Businesses are responding to the call for new apprenticeships, but may I urge the Secretary of State to ensure that these apprenticeships really are worth while and high-skilled, so that those who undertake them will really benefit from them?
Sajid Javid
I am delighted to say that my hon. Friend’s constituency has had a 37% increase in apprenticeship starts since 2010. I know that he is very passionate about this, and that he has done much to promote apprenticeships. He is absolutely right to talk about the quality. Higher and degree apprenticeships are widening access to professions, giving young people new, well-respected routes to professional education at some of our best universities.
Mr Iain Wright (Hartlepool) (Lab)
The Secretary of State talks a good game, but the fact is that apprenticeship starts have dropped in every single year since 2011-12. The ambition for 3 million new apprenticeship starts is commendable, but would he concede that, in the light of the uncertainty surrounding key policy aspects such as the apprenticeship levy, he is going to struggle to hit that target?
Sajid Javid
First, I must point out that there were more than 492,000 apprenticeship starts in 2014-15, which was up 50,000 on the previous year. The hon. Gentleman mentioned the apprenticeship levy, and I know that he and his Select Committee have done some work on this. I hope that he will acknowledge that that will be a way of ensuring proper funding for apprenticeships, not just for the quality but for the quantity too.
Caroline Flint (Don Valley) (Lab)
In Doncaster, we were absolutely delighted to secure one of the two sites for the national college for high speed rail, but the Government seem to be a bit lukewarm about that now. We want to get on with developing and expanding apprenticeship opportunities in the rail industry, so will the Secretary of State confirm that he still fully backs the site in Doncaster for the college?
Sajid Javid
I am happy to reassure the right hon. Lady that we are committed to the college. It is right that it should be in Doncaster, and it will make a big difference to skills in an important area for our future infrastructure.
Jenny Chapman (Darlington) (Lab)
What impact does the Secretary of State think cutting the funding for further education colleges by 40% might have on the availability and quality of apprenticeships?
Sajid Javid
I speak as someone who went to an FE college, and no one needs to tell me about their huge importance up and down the country. My priority is to make them stronger, and one way we are going to do that is through local area reviews, which will look at local need.
Chi Onwurah (Newcastle upon Tyne Central) (Lab)
The video gaming industry contributes more than £3 billion to our economy and supports skilled jobs across the country, including in my constituency. Representatives of the industry tell me that the biggest barrier to growth is a lack of skills, yet there are no employee-led level 4 higher apprenticeships in video gaming, and the NextGen Skills Academy, which was working with employers to develop such an apprenticeship, is said to have lost its funding. We cannot allow the Government’s lack of a digital skills strategy to make it “game over” for Britain, so will the Secretary of State give me a guarantee now that the video gaming industry will get the apprenticeship standard that it needs? Yes or no?
Sajid Javid
The hon. Lady should be reassured, first, by the fact that I have met representatives of the video gaming industry on a number of occasions to discuss several issues, including skills. She will know that it is important that apprenticeships are employer-led, and it is up to any industry to come forward with proposals. We are already working with more than 1,000 employers on more than 140 apprenticeship programmes that they are helping to set up, and we will work with the video gaming industry, too.
Henry Smith (Crawley) (Con)
2. What steps he is taking to support the aerospace industry.
Andrew Stephenson (Pendle) (Con)
16. What steps he is taking to support the aerospace industry.
The Secretary of State for Business, Innovation and Skills and President of the Board of Trade (Sajid Javid)
The Government are working with industry, through the Aerospace Growth Partnership, to remove the barriers to growth, to boost exports and to grow high-value jobs. As part of that work, we are supporting the industry’s investment in technology, competitiveness, productivity, and skills.
Henry Smith
I am grateful to my right hon. Friend for that answer. Will he join me in congratulating Boeing, which has a significant base in my constituency, on more than doubling its workforce since 2010 and on increasing investment in UK suppliers from £1 billion to £1.4 billion over that period?
Sajid Javid
I certainly will. Crawley is an important area for aerospace: Jeppesen-Boeing has a fantastic flight training and service facility, which includes the largest number of Boeing Dreamliner simulators in the world; and of course the area is also home to Thales and London Gatwick airport. I commend my hon. Friend on the work he has done to promote this industry.
Andrew Stephenson
The last financial quarter saw the highest ever number of aircraft deliveries—it was up 5% on last year’s figure and up 34% on 2010’s. Many aerospace companies across Pendle credit the Government’s Aerospace Growth Partnership as having played a key role in that success, so will the Secretary of State confirm that he will continue to support that valuable partnership?
Sajid Javid
Yes. I see regular dialogue with the sector councils, such as the Aerospace Growth Partnership, as a vital part of our industrial approach. It is important that the UK continues to become more productive and more competitive, and that has been central to the work of the Aerospace Growth Partnership. I will be meeting many of that industry’s representatives on 3 December in Filton.
Ian C. Lucas (Wrexham) (Lab)
Further to that question, will the Secretary of State confirm today that the UK Government will continue to fund the Aerospace Growth Partnership through their £1 billion contribution over seven years from 2013 and that he is not considering in any way diluting the funding available for the Aerospace Growth Partnership, particularly by converting it into loans?
Sajid Javid
The Government are absolutely committed to having a strong aerospace sector, and that strength is represented in our commitment to the Aerospace Technology Institute, which is what I believe the hon. Gentleman was referring to.
Liz Saville Roberts (Dwyfor Meirionnydd) (PC)
Discussions move ahead on the UK’s first space port. Does the Minister agree that safety, especially that of the general public, is of primary importance in considering the location of such a space port? Do not a coastal location and extensive airspace unhampered by commercial flying, such as are available at Llanbedr in my constituency, make a crucial contribution to any safety assessment?
Sajid Javid
The hon. Lady is absolutely right to say that safety is paramount in that sector. We have consulted on a location and we will be talking to our colleagues in the Department for Transport on the outcome.
Mr Laurence Robertson (Tewkesbury) (Con)
As the Secretary of State is aware, I have world-leading aerospace companies in my constituency, and they are appreciative of the help the Government are giving to the sector. The biggest problem they still face is the inability to recruit a sufficient number of young people who are considering engineering as a career. What discussions is he having with the Education Secretary about persuading teachers to enlighten pupils as to the opportunities that exist in the sector?
Sajid Javid
My hon. Friend makes an important point. Skills in engineering, not just for this sector, but for many others, are hugely important. With my right hon. Friend the Education Secretary, we are working closely to get more employers into schools to talk to schoolchildren about their prospects and the huge opportunities that exist in that industry. There is always more that we can do, and he is absolutely right to raise this issue.
Yvonne Fovargue (Makerfield) (Lab)
Last week, Paul Everitt, the head of the aerospace trade body, ADS, said:
“Loans for research and development are not appropriate and that kind of approach would put the UK at a disadvantage.”
May I press the Secretary of State to answer the question of my hon. Friend the Member for Wrexham (Ian C. Lucas) and rule out replacing research grants with loans that will damage Britain’s ability to innovate and compete?
Sajid Javid
I made a speech yesterday at the annual conference of Innovate UK in which I talked about the many ways to help the sectors. Grants, exports and skills are just some of them. One thing this Government will not shy away from is supporting that sector, and supporting innovation.
John Stevenson (Carlisle) (Con)
3. What steps he is taking to support the manufacturing sector.
The Secretary of State for Business, Innovation and Skills and President of the Board of Trade (Sajid Javid)
The best way the Government can support manufacturers is by sticking to their long-term economic plan. That includes cutting red tape by a further £10 billion, creating 3 million apprenticeships, lowering corporation tax and devolving budgets and powers to local leaders.
John Stevenson
My constituency of Carlisle in north Cumbria has a strong and healthy manufacturing sector. I helped to promote the industry locally by organising a skills fair, which the Minister for Skills will hopefully attend next year. However, what assistance can the Government give to Cumbria to attract skilled workers not just from Cumbria, but from other areas to help complete large infrastructure projects such as the nuclear new build at Moorside?
Sajid Javid
I commend my hon. Friend on his annual skills fair, which I know is already making a big difference to his constituents. He will be pleased to learn that the advanced manufacturing centre at Carlisle college will begin construction in 2016-17 with growth deal funding. There is no doubt that that will help to boost local skills.
Mr George Howarth (Knowsley) (Lab)
Does the Secretary of State accept that although it is important that employers have a leading role in the development of skills, it is also necessary that skills are transferable? Unless the FE sector is involved in the process of training people and giving them those skills, those skills will not necessarily be transferable.
Sajid Javid
I agree about the importance of transferable skills. Our local area review of the FE sector up and down the country will look very closely at local needs, and at ensuring that skills are transferable.
Tom Pursglove (Corby) (Con)
What steps is my right hon. Friend taking to protect British manufacturing from dumping on our market and maximising the effect of existing international rules?
Sajid Javid
My hon. Friend knows that, when it comes to trade measures, action has to be taken by the European Union. I know that he has a particular interest in steel, and this is a hugely important issue about dealing with unfair trade. We discussed that at the emergency Council that I attended yesterday in Brussels. One thing that was agreed in the presidency conclusions was that the Commission should prioritise certain cases, and that certainly includes the steel industry.
Alan Brown (Kilmarnock and Loudoun) (SNP)
Last week in my constituency, the Mahle Group announced the loss of up to 200 highly skilled jobs in the manufacturing sector. The Scottish Government, devolved agencies and local authorities are already involved, but this is a classic example of a European-wide company shipping the process and jobs to another plant in the EU. What support can the UK Government provide, and what can they do both to stop such moves in the future and to encourage long-term investment in technology here?
Sajid Javid
We can continue to make the UK as attractive as possible for manufacturers. What we have seen in the past five years is that output is up for the manufacturing sector, exports are up and jobs are up, and that is because of our long-term economic plan, which is bringing in tax cuts, investing in skills, cutting red tape and boosting exports.
Mike Wood (Dudley South) (Con)
Will the Secretary of State bring forward details of the package of support that will be put in place to help those workers in the black country affected by the collapse of Caparo, including 54 in my constituency, so that the skills can be retained within the black country engineering sector?
Sajid Javid
My hon. Friend is right to raise the issue. It is hugely important that workers who are affected by the crisis in the steel industry get whatever help can be provided. We have rolled out plans for support across the country, and we are talking to local leaders to see what more we can do.
Ms Angela Eagle (Wallasey) (Lab)
The official Opposition have had to drag the Government, kicking and screaming, to the House time after time to get them to stand up for British steelmaking. It is now almost two weeks since the Business Secretary finally went to Brussels to hurry along the European Commission on state aid approval, and yesterday he attended the EU Competitive Council. Although there were welcome pledges for the future, no action was agreed that will make a material difference to our steel industry now. How long must the industry continue to wait for the compensation package promised by the Prime Minister in 2011 to be paid in full? When will the Business Secretary get a grip, stop hiding behind the EU and do more to tackle the root causes of this crisis?
Sajid Javid
It is a shame that the hon. Lady has to take that attitude. It would be better if she were a lot more constructive on this issue. I could point out that under 13 years of Labour we saw a 45% collapse in steel production and jobs halved—cut by more than 10,000—because of her Government’s policies. This Government are taking the issue seriously. This Government called for, and were granted, an emergency Council meeting at which we agreed on a number of actions. They will be published today and there will be further information in my written statement, which the hon. Lady can read.
Louise Haigh (Sheffield, Heeley) (Lab)
5. What progress he has made on introducing a market rent only option for pub tenants.
Neil Carmichael (Stroud) (Con)
6. What his priorities are for business in the Government’s negotiations for reform of the EU.
The Secretary of State for Business, Innovation and Skills and President of the Board of Trade (Sajid Javid)
We must empower businesses to compete more effectively by accelerating the integration of the single market, especially in the services, digital and energy sectors. We will do this by cutting red tape for business and pushing for more ambitious free trade agreements between the EU and the rest of the world.
Neil Carmichael
Does the Secretary of State agree that the best interests of business will be served by our being a member of a reformed and reforming European Union? That extends to our remaining in the single market. From my right hon. Friend’s vantage point as President of the Board of Trade, it is extraordinarily useful that the European Union can negotiate such good strong deals for us globally.
Sajid Javid
My hon. Friend is right to highlight the importance of the need for EU reform, but many businesses believe that the costs of membership currently outweigh the benefits. As the Prime Minister said, in order for us to get the best deal, we must have the referendum and let the British people decide.
Conor McGinn (St Helens North) (Lab)
Last week a group of senior business figures in the north-west said it was vital for jobs in our region that Britain stays in the European Union. Will the Government heed what they say and perhaps make it a priority in the negotiations that the £800 million of EU structural funds given to the north-West will continue?
Sajid Javid
The one thing that businesses agree on is the need for reform. They are united in that, whichever business group one speaks to. If we can get those reforms, which I am confident about—and the Prime Minister has talked more about them this morning—we will see an even bigger boost to jobs and opportunities in Britain.
Mr Peter Bone (Wellingborough) (Con)
Will the Secretary of State remind the House of the trade deficit that we have with the EU, and of the fact that the unreformed EU is clearly not working for British business?
Sajid Javid
My hon. Friend is right to remind us of the current deficit. That is why one of the reforms that we want is a deeper and broader single market which includes digital and professional services, which Britain is very good at, alongside manufacturing, so that we can do more trade.
Hannah Bardell (Livingston) (SNP)
Writing in The Telegraph, the Prime Minister’s potential successor as leader of the Tory party, the hon. Member for Uxbridge and South Ruislip (Boris Johnson), said that the Prime Minister was right
“to unsheathe a section of the blade that might soon be used to cut the rope and set Britain free”
from the EU. Has the Secretary of State made an assessment of the likely impact on Scottish business of Britain turning its back on its European trading partners, and does he think that is appropriate language from a man of such standing?
Sajid Javid
I agree that we need reform. All Members on the Government Benches agree on the need to fight for that reform, which means cutting red tape and creating a deeper single market, more ambitious free trade agreements and fairness between the euro-ins and outs. I hope the hon. Lady will join us in fighting for that reform.
Hannah Bardell
A poll of Scottish business last month found that 82% of small and medium-sized businesses support the UK remaining in the EU. I dare say that those businesses value their ability to export more than £12.9 billion-worth of goods and services throughout the EU, creating wealth and jobs at home. Have this Government not lost all control of an exit agenda that was started only to appease right-wing Eurosceptic Back Benchers and may very well result in Scotland being dragged into delusional imperial isolation against its will?
Sajid Javid
I welcome the hon. Lady to her new role, which I omitted to do earlier. She will know that one of the most important sectors in Scotland is the financial services industry, whether asset management or banking. That is one area where we could have deeper single market and do more trade with the rest of the European Union. If she supports that cause, then she will support our efforts to reform the EU.
Bob Blackman (Harrow East) (Con)
7. What estimate he has made of the number of students from India applying to study in the UK in each of the past three years.
Julie Elliott (Sunderland Central) (Lab)
15. What recent discussions he has had with the Foreign Secretary on the effect on businesses of the UK’s membership of the EU.
The Secretary of State for Business, Innovation and Skills and President of the Board of Trade (Sajid Javid)
I work closely with the Foreign Secretary, particularly through the exports taskforce, which I chair, to deliver growth for British business. UK businesses send 45% of their exports to the EU and benefit from the single market. The reforms that we are pursuing are good for the EU, good for the UK and good for British business.
Julie Elliott
Some 160,000 jobs in the north-east rely on trade with the EU. We are the only region in the country consistently to deliver a trade surplus. What assurances can the Secretary of State give my constituents, many of whom are understandably concerned about what an isolated Britain on the fringes of Europe might mean for their jobs and livelihoods? Will he vote to stay in the EU and stand up for British jobs?
Sajid Javid
The hon. Lady has some excellent manufacturers and other companies in her constituency, including Nissan, which recently announced a huge investment. What business wants in respect of the EU is more certainty and reform, so it welcomes the reforms that we are fighting for, and the certainty that the referendum will bring.
Mr David Nuttall (Bury North) (Con)
One of the biggest impacts on UK businesses comes from the EU social chapter. As recently as 2010, the Conservative manifesto said that we would “negotiate the return” of power over “employment legislation”. Is that still going to happen, or have we gone backwards in our ambition?
Sajid Javid
We have set out our priorities in respect of making the whole EU, not just Britain, more competitive. They include cutting red tape and having more free trade agreements. We have set out those priorities in detail. I listened carefully to what my hon. Friend had to say and will reflect on it.
Nigel Mills (Amber Valley) (Con)
T1. If he will make a statement on his departmental responsibilities.
The Secretary of State for Business, Innovation and Skills and President of the Board of Trade (Sajid Javid)
My first and foremost priority in recent weeks has been to do what I can to help the steel industry. I pushed for and was granted an emergency meeting of the Council of Ministers, which took place in Brussels yesterday and led to a number of actions being agreed. I reiterate our support for the people in Redcar, Scunthorpe, Lanarkshire and elsewhere who have lost their jobs recently. This is an extremely difficult time for all who are affected. I say to them: we are resolutely on your side.
Nigel Mills
Many businesses in the construction sector in my constituency are still suffering from excessive levels of retention being taken by prime contractors. What more can the Secretary of State do to encourage the phasing out of retention before the 2025 deadline?
Sajid Javid
My hon. Friend raises an important point that a number of people have made to me recently. Cash retention is a common practice that can provide insurance for customers against poor workmanship. However, the scope for misuse is clear. That is why the Government have commissioned a review of the practice. We will see what action we can take.
Mr Gordon Marsden (Blackpool South) (Lab)
Further education has already been weakened by five years of Government funding cuts, so why are Ministers having hasty, half-cocked area reviews that threaten forced course and college closures? Figures released by the Library today suggest that the Chancellor is demanding at least £1.6 billion in FE cuts, and a new Green Paper proposes free-for-all providers that would threaten colleges’ higher education teaching. Are Ministers doing anything to stop FE being the spending review’s whipping boy?
Sajid Javid
We have discussed this issue previously. As I have said, we want an even stronger FE sector that provides even more opportunities across the country, and local area reviews are essential for that. We need to understand local needs much more carefully, and local reviews will achieve that. We will then be able to offer more opportunities.
Chris Heaton-Harris (Daventry) (Con)
T3. Many English Members of the House, while unable to recall individual results in the tournament, were extremely proud that England hosted the rugby world cup this year. What does my right hon. Friend estimate is the positive economic impact of hosting the rugby world cup?
Bob Blackman (Harrow East) (Con)
T4. I wish a happy Diwali to you, Mr Speaker, and to everyone celebrating it. Given Narendra Modi’s visit this week, will my right hon. Friend describe the various trade, educational and bilateral arrangements that will be announced, and say what Narendra Modi is looking forward to seeing during this visit?
Sajid Javid
I commend the work that my hon. Friend has done over many years to boost ties between India and Great Britain. A number of commercial announcements will be made during the visit of the Indian Prime Minister. Those will demonstrate the full breadth of the relationship between us and India, and will cover healthcare, energy, financial services and creative industries. That will help to boost both of our economies. Later next month, I will lead a trade mission to boost education exports alongside the Minister for Universities and Science.
Robert Jenrick (Newark) (Con)
For British businesses operating in highly regulated sectors such as the legal sector, India remains an incredibly restricted market to break into—in many respects, even more so than China. Will the Secretary of State use this week’s visit as a catalyst to move forward long-standing discussions on the service sector?
Sajid Javid
My hon. Friend is absolutely right to raise this issue. Britain and India do a lot of trade together, and there is a lot more we can do if we put our minds to it. These are exactly the kinds of issues we look forward to raising this week.
Oral Answers to Questions
Sajid Javid Excerpts(9 years, 3 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Huw Irranca-Davies (Ogmore) (Lab)
1. What recent assessment he has made of the UK’s membership of the EU on businesses.
The Secretary of State for Business, Innovation and Skills and President of the Board of Trade (Sajid Javid)
The UK was the fastest-growing major advanced economy in 2014. The OECD forecasts that that is to continue in 2015. This Government’s ambition is for Britain to be the most prosperous major nation in the world by the 2030s, and free trade with the rest of Europe has a very important role to play in that.
Huw Irranca-Davies
I welcome those words. The First Minister of Wales, Carwyn Jones, was in Japan only last week, building on our strong cultural, economic and social ties with that country, which have developed over a long time, and promoting our exports, which increased by 27% in Wales last year, building on the work of established companies such as Toyota, Sony and Sharp. Those companies view Wales and the UK’s membership of the European Union as key to the trading relationship and the thousands of jobs it underpins. Does the Minister agree with them?
Sajid Javid
I respect the hon. Gentleman, but given the utter shambles of his party’s EU policy I am surprised that he wants to ask that question. It is clear that free trade is hugely important to the prosperity of our nation, and that means working with our EU partners on more free trade agreements. That is at the heart of our renegotiation, because we want more free trade with an EU that is outward looking, not just inward looking.
Mr Peter Bone (Wellingborough) (Con)
First, may I congratulate the new Leader of the Opposition on his shift in policy in making Labour more Eurosceptic?
Is it not the truth that the European Union holds us back on free trade? Does our current account deficit of some £50 billion not prove that we would be better off out of the EU, with more free trade, more jobs and more business?
Sajid Javid
My hon. Friend highlights an important issue. [Hon. Members: “Shambles!”] Labour Members are talking about their EU policy, but my hon. Friend wants to hear my answer. We want more free trade, which means that, at this point, we have to work with the EU. For example, if the free trade agreement being negotiated between the EU and the US—the Transatlantic Trade and Investment Partnership—goes through as planned, it will add £10 billion a year to GDP, which is worth £400 for every hard-working family in Britain.
Kelvin Hopkins (Luton North) (Lab)
I utterly reject the idea that TTIP will be beneficial, but that is another question. The head of Vauxhall has said today that he is fairly relaxed about whether Britain remains a member of the European Union. We still import twice as many cars as we export, so there is plenty of scope for Britain to expand its manufacturing sector.
Sajid Javid
Under this Government, the manufacturing sector in Britain has been growing strongly, thanks to our policies to reduce the deficit and bring back economic confidence. As I have said, working with our EU partners is hugely important to increasing trade, particularly exports, and for sectors such as the automotive industry. They are doing very well, but they could do better if we keep working with our partners.
Neil Carmichael (Stroud) (Con)
Given that so many of our firms are in supply chains that benefit from the single market, does the Secretary of State agree that it is absolutely necessary for the Prime Minister to make sure that we reform that single market so that we can stay in the European Union and continue to thrive as a nation?
Sajid Javid
We are focused on delivering a successful renegotiation, and once that is done we will let the British people make the decision in the referendum. Having a better single market is at the heart of that renegotiation: it is about having more competition, less red tape and more free trade.
Michelle Thomson (Edinburgh West) (SNP)
Firms such as Nestlé and automotive companies such as Hyundai and Ford have indicated that a Brit exit could result in their scaling back. The UK automotive industry employs more than 700,000 people and accounts for 3% of GDP, according to KPMG. Does the Secretary of State really believe that it is worth risking foreign investment in the UK to solve an ideological battle within the Tory party?
Sajid Javid
The hon. Lady will know that the debate about the EU has been going on for many years and the right thing to do is to renegotiate. In order for that renegotiation to be successful, it is right to have a referendum. That is exactly what this Government are doing, and then the British people will decide. It is also clear that this Government have many policies that help industries such as the automotive industry to succeed, such as our investment in skills.
Kevin Foster (Torbay) (Con)
2. What plans he has to increase the number of apprenticeships.
The Secretary of State for Business, Innovation and Skills and President of the Board of Trade (Sajid Javid)
The coalition Government have delivered over 2.3 million apprenticeship starts since May 2010, and this Government will support 3 million new apprenticeship starts over this Parliament. We are developing a comprehensive plan for growth, including more work with large employers, more help for small businesses and a new funding system supported by an employer levy.
Kevin Foster
I thank the Secretary of State for his answer. Support for further education colleges, including South Devon college in Torbay, will be vital to delivering more higher level apprenticeships and, in particular, degree-level apprenticeships, which provide the highest level of training. What plans does he have to support FE colleges, including South Devon college, in delivering that type of training for employers?
Sajid Javid
I know that my hon. Friend is very passionate about this issue. I am happy to congratulate South Devon college on its plans. Degree apprenticeships are a fantastic route to higher level training. I assure my hon. Friend that my Department is working hard with colleges, universities and employers to support what is an increasingly popular route.
Jenny Chapman (Darlington) (Lab)
I am afraid that there is an issue not just with quantity, but with quality. With further education in a state that is getting close to desperate, too few apprenticeships are of a high enough quality. I visited Mech-Tool in my constituency, where apprenticeships are four years long and people get good jobs afterwards. What will the Secretary of State do to make sure that we improve quality for the rest of our apprentices?
Sajid Javid
The hon. Lady makes an important point. No one wants an increase just in quantity; we at the same time want to see quality improve. I hope that the hon. Lady will, for example, support the Enterprise Bill, when it is introduced in the other place on Thursday, which will for the first time protect the term “apprenticeship”.
Dr Andrew Murrison (South West Wiltshire) (Con)
The agricultural sector in this country is small, but important. One of the things that is holding it back is a lack of skills on the technical side of agriculture. Wiltshire college in Lacock is particularly concerned about that. What can my right hon. Friend do to assist in building up technical skills in agriculture in this country, and in particular to increase the number of apprenticeships in agriculture?
Sajid Javid
My hon. Friend is absolutely right. That issue has come up a number of times in the agriculture sector, and there is more work to be done. My hon. Friend the Minister for Skills is working on seasonal apprenticeships, which will help to make a change.
Ms Angela Eagle (Wallasey) (Lab)
Britain has a serious and growing skills shortage in science, technology, engineering and maths, with businesses facing what they have called a “skills emergency”. Alarming new figures show that of more than 250,000 apprenticeship starts last year, only 140 were in science and maths, and fewer than a fifth of apprenticeships this year are in engineering. Will the Secretary of State tell the House how he hopes to close the skills gap when there are so few apprenticeship opportunities in those subjects?
Sajid Javid
May I again welcome the hon. Lady to her place and to her new position? I agree with her that there is a skills shortage. When we talk to employers across the country, that is one of the first issues they bring up. That is why the Government have brought significant investment and focus to bear on the issue. For example, we launched our higher apprenticeships earlier this year and I would like to see those increase; as I have said, we are currently seeing record growth. We are also setting up a network of national colleges: there will be seven national colleges, and I hope that they will all be operational by September 2017.
Ms Eagle
I thank the right hon. Gentleman for his second welcome in as many days. I hope that there are some things we can agree on, even though we started off on very disagreeable terms with the Trade Union Bill yesterday.
There are serious concerns that in the rush to meet the Government’s artificial, politically driven target, many apprenticeships are really little more than a rebranding of entry level jobs. The latest Government figures show that only 3% of new apprenticeships starts were at the higher level. How can that be compatible with the Government’s aim of creating a highly skilled workforce?
Sajid Javid
As the hon. Lady perhaps knows, we are starting to see a significant increase in the number of people taking STEM-related apprenticeships and higher apprenticeships. She will also be aware that, in the recent Budget, we announced the introduction of the apprenticeship levy, which will help to make sure that there is long-term sustainable funding not just for the quantity of apprenticeships, but for their quality. I hope that she welcomes that.
Mr Alan Mak (Havant) (Con)
I welcome the Government’s move to ensure that all big Government contractors deliver apprenticeships as a key part of their commitment. Does the Secretary of State agree that, with over £50 billion a year spent on procurement contracts, that represents a huge opportunity to boost apprenticeship numbers across the country?
Sajid Javid
My hon. Friend makes an excellent point. We looked at that issue in the coalition Government, but I believe that we can take it further and we will announce plans shortly.
Michelle Thomson (Edinburgh West) (SNP)
I am delighted that the Secretary of State has learned the value of apprenticeships from Scotland. Our Parliament has created 25,000 places each year during its lifetime. It has now exceeded its target and brought the number up to 35,000 annually. Moreover, every apprentice in Scotland is guaranteed a job once their training is completed. As part of the plans to impose an employer levy, has he assessed the cost to Scottish businesses and apprenticeship opportunities that such a levy would impose?
Sajid Javid
I am pleased to hear that apprenticeships are doing well in Scotland—I have been following that closely. I would like to see more apprenticeships throughout the United Kingdom. That would be a good thing. I hope that the hon. Lady welcomes the development of the employer levy. We are in the process of deciding exactly how it will work. We are talking to all devolved authorities and look forward to working with them on it.
Ian Paisley (North Antrim) (DUP)
Northern Ireland has a good story to tell with regards to the development of apprenticeships. However, with the resignation of the Minister responsible and the impending collapse of the institutions, will the Secretary of State indicate that he and his Department will step up to the mark if required, fill the gap and continue that good work?
Sajid Javid
Of course I hope that Northern Ireland is able to deal with these troubling issues and that there is no collapse of the institutions. If there is anything that we can do to help, we will of course look carefully at that.
Bill Esterson (Sefton Central) (Lab)
3. What assessment he has made of the level of technical skills required by employers.
The Secretary of State for Business, Innovation and Skills and President of the Board of Trade (Sajid Javid)
To increase productivity we need to deliver the higher level, technical and intermediate-level skills that employers demand, as we have just heard. Our approach is to create a responsive, employer-led system of higher vocational education through expanding higher and degree apprenticeships and creating national colleges and institutes of technology.
Bill Esterson
We have a shortage of technical skills, not least in engineering and construction. According to employers, the Government’s focus on the number of apprenticeships amounts to little more than a re-badging of existing in-work training courses. When will the Government take the necessary action to deliver the high skills that are needed to boost productivity, growth and living standards in this country?
Sajid Javid
That gives me an opportunity to highlight the legacy of 13 years of Labour Government, when hardly anything was done to boost the skills of our people, particularly young people, in every sector. This Government have changed that. We saw progress under the coalition Government. As I said earlier, we will focus on higher apprenticeships, we will have national colleges and we will set up a prestigious network of institutes of technology.
John Howell (Henley) (Con)
18. Will my right hon. Friend join me in congratulating my constituent, Senior Aircraftman Shayne Hadland on winning a silver medal for aircraft maintenance at the WorldSkills competition in São Paulo and on being named best of nation for the United Kingdom? Does that not illustrate the importance of good technical skills and how the RAF is providing them?
Sajid Javid
I join my hon. Friend in congratulating Shayne Hadland. It was a huge achievement to win such a prize at the WorldSkills competition—I know just how competitive it was. Luckily for Britain, we had many other winners and I congratulate them too. It is an inspiration to many people.
Ian Austin (Dudley North) (Lab)
Does the Secretary of State agree that the best way to improve the level of technical skills in the west midlands would be to get behind the proposals from the region’s local authorities and local enterprise partnerships for a combined authority and elected mayor with devolved skills budgets to improve skills, bring former industrial sites back into use, provide more housing and better transport links, and get the economy of the west midlands really moving?
Sajid Javid
I agree with the hon. Gentleman that the proposal for a west midlands combined authority looks exciting and should be taken seriously. Obviously, the Government are considering all the proposals and need to look at their merits. I have met a number of people behind that proposal and it would be great to see whether we can work together and bring it forward.
Michael Tomlinson (Mid Dorset and North Poole) (Con)
Dorset Young Enterprise is a voluntary organisation that goes into schools to help improve skills with local employers. I declare an interest as someone who has worked within Dorset Young Enterprise. Does my right hon. Friend agree that such organisations are vital in closing the skills gap and ensuring that young people leave school ready to start work?
Sajid Javid
My hon. Friend is absolutely correct that Dorset Young Enterprise and many groups like it throughout the country are doing a hugely important and vital job in closing the skills gap. The Government could look at how we can support that not just in Dorset but throughout the country. He is absolutely right to raise this matter.
Scott Mann (North Cornwall) (Con)
5. What steps his Department is taking to help apprentices with the cost of travelling to work in rural areas.
The Secretary of State for Business, Innovation and Skills and President of the Board of Trade (Sajid Javid)
Apprenticeships are paid jobs with quality training, and availability is determined by employers. There is no central publicly funded support towards travel costs, but some local authorities run schemes that help apprentices with such costs. Apprentices who were previously unemployed may be able to benefit from a travel discount card operated by Jobcentre Plus.
Scott Mann
It has been brought to my attention that many young apprentices struggle with their first car insurance premium. Will the Secretary of State consider bringing in special insurance premiums for apprentices?
Sajid Javid
I am pleased that my hon. Friend has raised that important point as the cost of car insurance is an issue for many young people across the country. Many insurance companies already offer ways to reduce the cost of insurance for young drivers, for example by installing driver monitoring devices, and I would welcome other approaches by insurance companies to reduce that cost. My hon. Friend may have some ideas in that regard, and I would be happy to meet him to discuss them.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
Does the Minister realise that many young people in the rural part of my constituency have difficulty getting to the fine Kirklees further education college in Huddersfield? I beg him to take notice of Professor Alison Wolf’s clarion call that if we put all our money into apprenticeships and neglect our FE colleges, we will be on the road to ruin and will never sort out the productivity challenges of our country.
Sajid Javid
I listen carefully to what Professor Alison Wolf says. The hon. Gentleman points out the pressures faced by the FE system, and he will know that as the quantity and quality of apprenticeships increase—for example, with the introduction of the apprenticeship levy—that will help to support our college system.
David Simpson (Upper Bann) (DUP)
6. What steps the Government are taking to tackle cash retention within the construction sector.
Philip Davies (Shipley) (Con)
T1. If he will make a statement on his departmental responsibilities.
The Secretary of State for Business, Innovation and Skills and President of the Board of Trade (Sajid Javid)
Over the summer, my Department has been responding to the Treasury’s request to find savings in the BIS budget. That is a vital part of the Government’s plan to eliminate Labour’s record budget deficit, support the recovery, and protect the economic security of the nation. We have also been preparing important legislation: the Trade Union Bill, which received its Second Reading here yesterday, and the Enterprise Bill, which will be introduced in the other place later this week.
Let me take this opportunity to congratulate all the British people who took part and won in the summer WorldSkills competition in São Paulo.
Philip Davies
Whatever one’s view of Sunday trading, does the Secretary of State agree that it is absolutely absurd that a Tesco Express can open all day on a Sunday, but a Tesco Superstore can open for only six hours? Will he commit himself to taking steps to allow people to work and shop when they want to, not when the Union of Shop, Distributive and Allied Workers tells them they can?
Sajid Javid
My hon. Friend always raises important issues like that. It is absolutely right for us to take a fresh look at Sunday trading rules, which have not been considered carefully for many years, and that is what the Government are doing. My hon. Friend will be fully aware of our proposal to devolve the relevant decision-making to local authorities.
Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)
In The Independent last week the previous Business Secretary described the deafening silence from this new Government on industrial strategy as “ominous”. Has the current Business Secretary decided if he has an industrial strategy yet?
Sajid Javid
Our policies for dealing with all industries are very clear: we have a very active dialogue with all industrial groups and with many companies, as well as with leading business groups, and that dialogue will continue. We do that, for example, through the sector councils; we listen very carefully to what they have to say and work in partnership wherever we can.
Suella Fernandes (Fareham) (Con)
T2. I recently visited SMR Automotive in Portchester, a global leader in vehicle exterior mirrors and camera-based ADAS—advanced driver assistance systems. With 750 jobs locally, it is an outstanding example of manufacturing. What is my right hon. Friend doing to ensure quicker and greater access to brownfield land so that companies such as SMR can expand?
Sajid Javid
It is great to hear another example from the UK’s successful automotive industry; it is one of the brightest stars in the constellation of British business. We encourage the effective use of land by reusing brownfield land. Local planning authorities, through their local plans, need to respond to market signals and set out a clear strategy for allocating land suitable for development.
Mr David Hanson (Delyn) (Lab)
T3. Following on from the question of the hon. Member for Shipley (Philip Davies), it is not just USDAW members who are opposed to changes in Sunday trading. Last week, for example, the British Retail Consortium said:“There is a strong consensus across the industry that the proposal to devolve these decisions to a local level, rather than them being decided nationally, is a matter for concern.”Will the Business Secretary truly take account of the consultation and, if business, workforces and the public say no, not make those changes?
Sajid Javid
As the right hon. Gentleman will know, the consultation is about to close and we will carefully look through its responses, as we always do, but I am sure the right hon. Gentleman agrees with choice, so that local authorities can decide if it is the right thing for them. If, for example, there is a local area with higher unemployment than elsewhere and the local authority thinks the changes will help to create jobs for local working people, that will clearly be a good thing. There was a time when the Labour party was the party of working people; what has happened?
Stuart Andrew (Pudsey) (Con)
T5. Is my hon. Friend aware of the example mentioned last week in the Science and Technology Committee of a £2 million Innovate UK investment leveraging a further £44 million from the private sector? Does he agree this shows the importance of Government supporting science?
Will Quince (Colchester) (Con)
At the weekend, my wife and I visited Bill’s, which is a new restaurant in Colchester and part of a large chain. At the end of the evening the bill had an automatic 10% gratuity, which the staff member said that they did not receive. Does my hon. Friend agree that the public expect staff members to get the tips in recognition for the service rendered?
Sajid Javid
Yes, absolutely. When a diner leaves a tip, they rightly expect that to go to the staff. Recent reports have suggested that some restaurants are not doing that, which is unacceptable. I have already launched a call for evidence. I will see whether the Government need to take any action. If they do, nothing is off the dining table.
Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)
The Office for National Statistics has stated that in July our manufacturing output dropped, our exports—particularly to the emerging markets—dropped and that confidence levels among our manufacturers was very low. Given that the Chancellor said in 2011 that he was backing the “march of the makers”, what additional measures will the Minister take to ensure that that boast can become a reality?
Sajid Javid
I always listen carefully to what the hon. Gentleman says. He did a great job as Chair of the Business, Innovation and Skills Select Committee and he makes some important points, but he will be fully aware that manufacturing crashed as a proportion of our economy under the previous Labour Government, almost halving in size. Under this Government, the proportion has gone up as we rebalance the economy. He is right, however, to identify the question of exports, and we have set up an export taskforce to come up with new initiatives that will make a huge difference.
Daniel Zeichner (Cambridge) (Lab)
Last week the World Economic Forum published its “Inclusive Growth and Development Report”, which states that
“efforts are required to improve access to education as well as its quality, which would be important for tackling…the low levels of social mobility in the country.”
What efforts is the Secretary of State making to achieve that?
Mr Peter Bone (Wellingborough) (Con)
The previous Secretary of State gave his approval for Rushden Lakes, a major retail and leisure facility in my constituency. The development is now well under way, and it will create thousands of jobs. Will the Secretary of State find time in his calendar next year to show his support for the development and for the success of Conservative economic policy?