(12 years, 2 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
I thank the hon. Member for Arfon (Hywel Williams) for his kind comments about my appointment. I am sorry, or perhaps glad, that he missed my rather embattled response to a debate on unemployment in north-east England when I stood in for a Minister recently. The hon. Gentleman rightly referred to the near total silence in which I have been working as a Government Whip over the past two years or so. I pay tribute to him. He and I served together on the Select Committee on Welsh Affairs in the previous Parliament. I always appreciated the intelligent and sensitive approach that he brought to all the issues we looked at, which he has again demonstrated in the manner he has approached the topic today.
We have an opportunity before us to provide a timely update to Members on the progress of the intergovernmental talks on funding reform. In July last year, the Secretary of State for Wales informed the House in a ministerial statement of the Government’s plans to establish the Commission on Devolution in Wales—now commonly known as the Silk commission. It was established in October 2011, fulfilling a commitment in our programme for government to establish a process for the National Assembly similar to the Calman commission.
As hon. Members from Wales know, the commission is looking at the case for devolving fiscal powers to the Assembly and the Welsh Government, to improve the financial accountability of the devolved institutions in Wales. The Government will consider the commission’s recommendations carefully when it publishes its part 1 report in, I hope, late autumn.
The Secretary of State’s July statement also made clear the Government’s commitment to consider all aspects of the Holtham commission’s reports and to continue discussions with the Welsh Government on Holtham’s funding reform proposals for Wales. The talks will also cover the operation of the Welsh Government’s existing borrowing powers. The aim of the intergovernmental talks has been to explore and test the conclusions reached in the Holtham report in respect of Welsh funding, to look at what the trends in funding have been and are likely to be, and to consider the extent to which there has been convergence between the Welsh block grant and relative funding in England. The hon. Gentleman drew attention to the difficult issue of convergence, which has been at the heart of what the two Governments have been discussing.
The talks have also explored previous studies carried out on Welsh needs. The hon. Member for Carmarthen East and Dinefwr (Jonathan Edwards) talked about a cloak of secrecy; there has been no cloak of secrecy around the talks. They have been conducted on exactly the normal basis that one would expect intergovernmental talks to be conducted on. They have been going on for about 12 months and have been conducted in a positive way. The two Governments have worked closely and collaboratively as the talks have progressed. As one would expect, they have involved the Chief Secretary to the Treasury and the Secretary of State for Wales. Together, they have had a productive and positive dialogue with Welsh Government Ministers, and, in particular, the Welsh Minister for Finance. Those meetings between Ministers have been supported by meetings between officials. Officials from the Welsh Government have met on an almost monthly basis with officials from the Wales Office to carry forward the discussions, analyse the evidence and determine the funding trends.
I am pleased to tell the hon. Member for Arfon and the House that the talks are now reaching a conclusion. I hope that hon. Members will appreciate that, although the talks are in their final stages, I am not able today to give a detailed statement as to what the outcome will be. I am confident that we will be in a position to make an announcement in the near future on the outcome. I hope that the hon. Gentleman is made positive and optimistic by my confidence, and that he will recognise that the outcome will benefit Wales, and be good for Wales and the United Kingdom as a whole.
I appreciate that the Minister does not want to disclose the outcome of the discussions. We understand that we are most likely to see the introduction of a Barnett floor. My hon. Friend talked about that floor being based on the Holtham estimates, which go back four or five years. The key question we want answered is whether there has been any reassessment of those estimates in terms of coming to a conclusion on the Barnett floor. If there has not been, and the situation has worsened—and we believe it has—that floor would end up becoming a Barnett ceiling. That outcome would be disastrous. To be perfectly honest, given the record of the Finance Minister in the Welsh Government, we are concerned that Treasury Ministers will be running rings round her.
Tempted though I might be to be drawn into discussing what might be in the final statement, I will not do so. On what the Holtham report said about the financial position of Wales, the hon. Gentleman mentioned his party’s belief. There are a lot of beliefs about the position. Big assumptions are made in the report about Wales’s funding situation. Not all of those beliefs and assumptions are shared by the UK Government.
Over the past 12 months the two Governments have together been exploring the issues in detail. The hon. Member for Arfon went into a little detail about the Barnett formula, and its weakness. I caution him about claiming that the current system always delivers an unfair outcome for Wales. The spending settlement for Wales in the 2010 spending review was fair in a difficult economic climate. It represented a 7.5% reduction in the Welsh Government’s resource budget—an average cut of less than 2% a year. We recognise that there are challenges in that, but it is significantly less than the 3% a year cut that the Welsh Government had previously planned for. In addition, the Government have provided almost an additional £500 million since the spending review for the Welsh Government to use in any way they want.
In our programme for government we recognised the concerns expressed by the Holtham commission, but our priority was and is to stabilise the public finances. Plaid Cymru’s perspective may differ from the Government’s, in not recognising the necessity of the UK fiscal framework, but that is the context in which we are operating. Reform of the Barnett formula cannot take place in the current environment. It should be borne in mind that comprehensive reform, as my hon. Friend the Member for Montgomeryshire (Glyn Davies) so eloquently said, would have huge implications not just for Wales but for all parts of the United Kingdom. That is why the intergovernmental talks between the UK and Welsh Governments have not looked at replacing the Barnett formula, or at the pros and cons of alternative systems.
Will the Minister explain something to me? The economic forecast given to us in 2010 does not seem to be holding up. We seem to be in a no-growth situation. Is there therefore a case for revising the view of when the Barnett formula should be reconsidered, given that we now face perhaps another five years of double-dip recession?
I have yet to see any economist forecasting five years of double-dip recession. I always enjoy listening to the hon. Lady, but given the zero progress that her party’s Government made on the issues, I am not sure we should take guidance from her on this subject.
I do not wish to torture the Minister with Keynesian quotes; but Keynes did say:
“When the facts change, I change my mind. What do you do, sir?”
What do the Government do if the facts have changed?
There are established processes in place, through the comprehensive spending review, for looking at all those issues. I hope that the hon. Gentleman will take me at my word when I say there is a genuine commitment among the new team in the Wales Office, and our colleagues in the Treasury, to work with Ministers in the Welsh Government to explore those issues in depth, and ensure that Wales gets the fairest possible outcome.
The hon. Member for Arfon raised some other financial matters. Progress has been made on the issue of the housing revenue account, about which the hon. Member for Carmarthen East and Dinefwr spoke so powerfully in, I think, November 2010. The Government are working with the Welsh Government on how the HRA in Wales can be abolished, in line with the approach taken in England. We agree that any reform of the HRA subsidy system would need to be fiscally neutral, as it was in England. I know that Plaid Cymru Members have strong feelings about the current system, but Ministers here and in Cardiff agree that it is not unfair to Wales. However, they are considering ways to improve it. Discussions are continuing, and we are currently awaiting clarification from the Welsh Government to proposals that they made in August. I emphasise, again, that we are operating within the framework of the UK fiscal system, and need to bear in mind the consequences to other parts of the system of change affecting Wales.
Hon. Members should be aware that the former system of end-year flexibility has now been replaced with a new budget exchange system. In designing that system, the Government worked closely with the Welsh Government and have implemented a system that provides increased flexibility for the devolved Administrations to manage their own underspends. The Welsh Government have signed up to that approach, as indeed have the other devolved Administrations. I want to make one point about underspends. Generally it is not good to have many of them. Administrations should plan prudently as well as spend prudently, and if they do that, and carry out their spending plans efficiently, there should not really be any case for large underspends at the end of the year.
I hope that I have dealt with all the points that the hon. Gentlemen raised. I look forward to hearing the outcome of the talks.
I welcome the Minister to his position—to both of them, in fact. He is a remarkable person, as he is able to spend so much time both as a senior Whip and a Wales Office Minister.
I want to ask him about the future, and how he sees the work of the Silk commission progressing to part II. Will he talk about the future constitutional relationships? Will there be dialogue with the commission on the West Lothian question, for example?
Part II of the Silk commission goes way beyond the subject that we are debating, as the hon. Gentleman knows. It looks at wider devolution in Wales, and the potential for devolving other powers. Part I, which has more of a bearing on what we are discussing, looks at potential fiscal devolution; so, tempted again as I might be, I am not going down that path.
I know we have plenty of time, but I am still not going to talk about that issue when we are debating funding issues.
Question put and agreed to.
(12 years, 5 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
I pay tribute to the hon. Member for Hartlepool (Mr Wright) for securing this debate; we do not get enough opportunities in the House to debate regional issues. As a Member of Parliament for Wales, I do get such opportunities when the Welsh Grand Committee meets, which it is doing this afternoon. Unfortunately, other regions of England do not have the same opportunities.
I was disappointed that the hon. Gentleman started off on a slightly discordant note, by mentioning the absence of the Minister.
No, it is not a fair point. What the hon. Gentleman did not say was that his Front-Bench team, in a rather cack-handed way, managed to timetable a debate in the main Chamber, requiring a Department of Work and Pensions Minister at exactly the same time as his own important debate this afternoon. If he does not think that the presence of the Employment Minister at the European employment summit this afternoon is critical given everything that is going on in Europe, I do not know what is—perhaps spending time with the Dalai Lama.
As the ministerial Whip for the Department, it is entirely appropriate that I respond to this debate, given that the other Ministers are tied up in other debates in the House.
The hon. Gentleman spoke well about the impact of unemployment on families and communities; that was one of the best parts of his speech. Like me, he comes from a part of the country where, historically, unemployment has been a blight on the community. He and I both have the privilege of representing constituencies in which we have grown up, and we understand the issues well. He powerfully explained the negative effect that unemployment has on communities.
Let me assure the hon. Gentleman and all colleagues in the Chamber this afternoon that the ministerial team at the DWP shares a passion and commitment for tackling unemployment. There is absolutely no complacency whatever within the departmental team about this issue. We recognise that unemployment, especially youth unemployment, is one of the biggest challenges that faces the Government.
I apologise for turning up late to this debate. I have been meeting a construction company from my constituency that is considering laying off 200 to 300 members of its work force—something that would be catastrophic. The hon. Gentleman correctly mentions the fact that there is little regional consideration of this whole matter. Therefore, there is no differentiation in approach across England in dealing with it, so while unemployment across England goes down, it goes up in the north-east.
I dispute that. The Government are trying to move away from the one-size-fits-all policies of the previous Administration. We are looking at locally and regionally tailored solutions, where appropriate.
Several hon. Members mentioned today’s labour market figures. I am not as gloomy as the shadow Minister about them. There are reasons for a measure of optimism. Nationally, employment is up by more than 400,000 since 2010. Private sector employment has gone up by 843,000, since 2010, and it has gone up again in the past month. In the past 12 months, in the north-east region, employment overall has gone up by 10,000 and private sector employment has increased by 17,000, which more than offsets the drop in public sector employment. That counters the point that the Opposition made about the drop in public sector employment being a driver of overall unemployment in the north-east region.
Those are encouraging signs, but we recognise that unemployment remains too high. It is true that unemployment in the north-east remains higher than in other parts of the country. Several Members have referred to the fact that it has the highest unemployment figures of all the UK regions.
Long-term unemployment affects only a minority of people, but it is a particular concern because it brings with it the risk of detachment from the labour market and people losing the hope of finding work again or finding that the skills that they had are diminished or outdated.
In the north-east, more than 24,000 people have been claiming unemployment benefits for more than 12 months. That figure is much lower than it was 25 years ago—the hon. Member for Hartlepool referred to the 1980s—but it is still too high, and we are not complacent.
One of the groups that has been hardest hit during the last two years of recession is young people. We have seen encouraging signs recently that youth unemployment might be starting to come down. Excluding unemployed students, it fell by 23,000, to just over 700,000 in the most recent quarter. That still leaves almost 50,000 16 to 24-year-olds unemployed in the north-east, so there is clearly much more to be done.
In April, we announced an additional £1 billion package of support for young people through the youth contract. Very few Opposition Members mentioned the action that is taking place and the fact that, in the past year, some 7,000 young people have benefited from the work experience scheme in the north-east. Nor did they mention the fact that there are 30,000 additional apprenticeships in the north-east, more than 1,000 of which are in the constituency of Hartlepool. It is not surprising that they do not want to talk about it. As Labour Members elsewhere have mentioned, one of the big failings of the previous Labour Administration was that they did not recognise fully the importance of apprenticeships and the link between high-value apprenticeships and upskilling in the economy.
Surely, the hon. Gentleman is aware that the number of apprenticeships increased tenfold under the Labour Government.
In the last 12 months, 67% more apprenticeships were created than in the last year of the previous Labour Government.
I support the Government in their hard work on apprenticeships and report that the number has doubled in my constituency and in many other constituencies in the north-east.
The hon. Gentleman is right to say that the number of apprenticeships has gone up. The biggest increase is for those over the age of 25. However, the massive increases are not in engineering, where the number has gone up by 29%, but in education and training, which has gone up by 373%, in arts, media and publishing, which has gone up by 134%, and in health, public services and care, which has gone up by 104%. Where we need the growth in high-value jobs, the apprenticeships are not coming through as quickly as they are in other sectors.
The hon. Gentleman seemed to downplay a 29% increase in engineering apprenticeships. More than a third more apprenticeships in engineering have been created, which is quite a success story, and I am grateful to him for highlighting it this afternoon.
We have heard useful contributions from my hon. Friend the Member for Redcar (Ian Swales) who recognised the importance of a sensible regional strategy. He talked about the benefits of the local enterprise partnerships in the north-east and in the Tees valley. He also drew attention to the fact that the north-east has recently achieved record exports. We believe in rebalancing the economy, and we want to see a more balanced export-led recovery. With its record exports, the north-east is well placed to take advantage of that.
Several hon. Members have referred to the excellent John Mowbray, who is the president of the north-east chamber of commerce. Last week, he talked about the importance of the north-east as a potential driver for an export-led recovery. I am really disappointed that Labour Members have not recognised that and are not sharing the ambitious approach of the north-east chambers of commerce. John Mowbray said that what the north-east really needs is a united front. Labour Members have turned up in force this afternoon not to show an ambitious united front or a positive approach—[Interruption.]
Order. May I suggest that Members make a formal intervention, rather than engaging in this rather poor behaviour?
Let me reiterate that the coalition Government have two parties working together to fix the legacy of a broken economy left to us by the Labour party. We are doing it in a way that fully recognises the importance of protecting regions such as the north-east of England, of seeing them reach their potential and of seeing unemployment brought down as quickly as possible.
(13 years, 11 months ago)
Commons ChamberI start by echoing the thanks of my hon. Friend the Member for Wellingborough (Mr Bone), a member of the Backbench Business Committee, to all the members of his Committee and the staff who support its work. We have had an interesting first chapter to this debate and I shall try to provide substantive responses to each contribution.
First, I turn to the speeches made by my hon. Friends the Members for Filton and Bradley Stoke (Jack Lopresti) and for Portsmouth North (Penny Mordaunt), who both spoke passionately about social mobility and the contribution that community organisations make to delivering the big society. Unlocking social mobility is at the heart of the coalition Government’s agenda. We believe that a fair society is one in which opportunities are detached from origins and everyone has the chance to do well regardless of their background. If everyone can fulfil their potential and people’s talents are unlocked, our economy will also benefit.
However, we should recognise that social mobility trends in the UK are not encouraging. There is evidence that social mobility declined for people born in 1970 in comparison with those born in 1958. Data from the OECD show that, relative to other countries, the earnings of individuals in the UK are strongly related to the earnings of their parents.
We want to reduce the degree to which patterns of advantage and disadvantage are carried across from one generation to the next. The Deputy Prime Minister is championing social mobility within the Government and is chairing a social mobility ministerial group to ensure cross-Government action. A social mobility strategy will be published early next year and several reforms that aim to improve social mobility are already in process. Alan Milburn has been appointed as the independent reviewer of social mobility, to keep us on our toes.
I agree with my hon. Friend the Member for Filton and Bradley Stoke, who said that the Government cannot improve social mobility by working alone. That is true. Individuals, civil society organisations, employers, community groups and other non-governmental organisations play a critical role in helping people to do well, regardless of their backgrounds. The three pillars of the big society—social action, community empowerment and reforming and opening up public services—will empower people to take control of their lives, and the rest of society, not just the state, will help them to do that.
The Government are committed to supporting the voluntary, community and social enterprise sector to take up opportunities and play its part in the big society. We want to recast the sector’s relationship with the state and give it a huge range of new opportunities to shape and provide innovative, bottom-up services and solutions where state provision has failed. We recognise that those opportunities will not emerge overnight and that, furthermore, spending reductions will also have an impact. We are making £100 million of transition grant funding available to front-line organisations over this and the next financial year to support the sector through this difficult period. That will give such organisations the breathing space that they need.
Ministers have also made three clear commitments to support the sector over the longer term. First, we will make it easier to run voluntary and community groups and social enterprises; secondly, we will put more resources into the sector; and, thirdly, we will make it easier for the sector to work with the state. Examples of our work in that area include the Lord Hodgson review into cutting red tape, and the big society bank, which will help to grow the social investment market and broaden the finance options open to the sector. We are consulting on proposals to improve infrastructure support for front-line civil society organisations in order to ensure that the Government’s investment in improving the capability of the sector in the future is appropriate and effective. That consultation closes on 6 January.
When the Backbench Business Committee produced this pilot form of business, I did not know that we would have the novel experience of hearing a Whip at the Dispatch Box. I think it is my hon. Friend’s first time at the Dispatch Box, but he is doing a good job. I wonder whether we will be hearing from more Whips at the end of term. In many regards, he is doing much better than the normal Ministers.
I think there was a compliment in there somewhere. I remind my hon. Friend that it is not an entirely novel experience. In the previous Parliament and in this Parliament, Whips have been deployed in a variety of ways, including at the Dispatch Box.
My hon. Friend the Member for West Worcestershire (Harriett Baldwin) raised the “knotty” issue of the West Lothian question. The Government have announced that they will establish a commission to consider that issue as part of their wider political reform. She referred to the answer to a question asked last week by my hon. Friend the Member for Brighton, Kemptown (Simon Kirby) from the Parliamentary Secretary, Cabinet Office, my hon. Friend the Member for Forest of Dean (Mr Harper), who has responsibility for political and constitutional reform, in which he said that the Government will make an announcement on the commission in the new year. I am happy to confirm that we do indeed mean 2011. That is very much part of our programme for next year. The issue has been around for at least 150 years, so I encourage my hon. Friend the Member for West Worcestershire to bear with us and show patience, because it is important that we get the right solution to some difficult issues.
We are continuing to give careful consideration to the timing, composition, scope and remit of the commission. Its work will need to take account of our proposals to reform the House of Lords to create a wholly or mainly elected second Chamber. There are changes being made to how this House does its business and there are developments in devolution, not least through the Scotland Bill before the House. As I have said, we will be making an announcement on that in the new year.
Two hon. Members addressed the issue of the 2011 census. We had powerful speeches from the hon. Members for Westminster North (Ms Buck) and for Slough (Fiona Mactaggart). All hon. Members will be aware that the census takes place on 27 March. Accuracy of the census is very important, because it is used to allocate billions of pounds of public spending every year. The Office for National Statistics takes the census extremely seriously and is working very hard to ensure that the problems of undercounting experienced in 15 local authority areas in 2011, including in Westminster, are not repeated. The ONS is actively engaging with every authority to ensure that there is a successful census next year, and it has a partnership plan in place with each local authority. A plan for London as a whole has also been developed with the Greater London authority and the London boroughs.
There is a partnership plan, but the problem is that it is a bit one-way. If it were a genuine partnership, local authorities that are trying to help improve the accuracy of the census would have more ability to contribute to the partnership. If the hon. Gentleman would tell the ONS that, we might have a better partnership.
I assure the hon. Lady that the ONS will receive a full transcript of this debate. I am surprised by her remarks, because only last week, I think, the chief executive of Slough met the ONS to discuss the census. The leader of Westminster city council has also had meetings this year with the ONS on the topic.
On specific improvements to the census process, 35,000 field staff are allocated to areas where it has been hard to obtain responses in the past, particularly inner-city areas and areas of high migration and population change. There will also be a three-times greater effort by field staff to collect outstanding questionnaires than in 2001 and a four-times greater effort in London and some other urban areas, including Slough. Some 200 staff are working within their local communities to engage local residents and community groups, promote the census, encourage local people to apply for census jobs and arrange support and assistance for census completion where needed. Collecting details of second addresses in the census will improve the population counts in local authority areas, such as Westminster. Additional questions about national identity, the intention of migrants to stay and citizenship will support a more detailed understanding of migration and population in areas including Slough and Westminster.
I am not seeking to challenge the hon. Gentleman’s in-depth knowledge on the census, but would he do me the great favour of asking the relevant Minister to write to me on the specific issue of recruitment? We have a genuine problem, and Westminster council’s briefing substantiates that. I am sure that my hon. Friend the Member for Slough (Fiona Mactaggart) would also like to pursue the matter further with the relevant Minister.
We will write to both hon. Members on a number of the questions they asked about the census. Recruitment is, overall, going very well. Recruitment of 4,000 special enumerator and census collector jobs began in September and is nearing completion; 67,000 applications have already been received. Recruitment of collectors began in November and is also progressing well, with 82,000 applications received so far for around 30,000 roles. Efforts are targeted in the small number of areas where allocations have been slower.
On the subject of the Queen’s diamond jubilee competition for city status, I pay tribute to the work, energy and commitment of the hon. Member for Perth and North Perthshire (Pete Wishart) in supporting his local community’s bid. The last occasion to have been marked by granting city status was Her Majesty’s golden jubilee in 2002, when separate competitions were held in the devolved nations. That resulted in the granting of city status to one town.
As usual, the hon. Gentleman is correct. The time limit was an expectation that I stated at the outset, but the Chair will exercise judgment about when the debate should be concluded. The hon. Member for Preseli Pembrokeshire (Stephen Crabb) is seeking to respond to points, and he may briefly continue to do so.
I am grateful for your generosity and clarification, Mr Speaker. All previous competitions up to 2002 had been organised on a UK-wide basis. The golden jubilee competition was the only time when separate competitions were held for the devolved nations and for England. We regard the bestowing of city status as a signal honour and a rare mark of distinction. Something special will be lost if too many places are granted city status. The Government’s expectation is that only one new city will be created as a result of the diamond jubilee competition and, similarly, that only one existing city will be granted a lord mayoralty or lord provostship.
Does the hon. Gentleman accept that it is very difficult for Scottish cities to compete with English cities, given our different civic traditions and cultures? Does he also accept that if we are trying to ensure that a range of places across the United Kingdom are involved, there has to be more than one winner? Surely, if there is to be only one winner, the largest will naturally be the favourite.
I am not sure that I accept the hon. Gentleman’s analysis at all on that. Every bid will be judged fairly on its merits. There are some strict criteria in place, the details of which are available on the Department for Culture, Media and Sport website. I hope that those criteria will allay some of his concerns.
I am sure that the tradition of referring to Perth as the fair city will continue, whatever the outcome of the competition. However, there is only one way to become recognised as a city in the UK: by having the honour conferred by the sovereign. That is the prize that awaits the successful entrant to the competition. I wish all potential entrants, including the fair city of Perth, the very best of luck.