Budget Resolutions

Debate between Stephen Timms and Lord Sharma

Thursday 12th March 2020 Commons Chamber

[Alok Sharma]

My hon. Friend makes an incredibly important point. He has had a very successful business career and knows all about attracting inward investment, and he is absolutely right: the UK has been, and will continue to be, a beacon under this Government for foreign inward investment.

[Stephen Timms (East Ham) (Lab)]

The right hon. Gentleman mentioned 2010. I had a look back at the Red Book from 2010, which warned that if nothing had been done and the previous Government’s policies had carried on, then by 2014-15, we would get debt still rising up to 74.4% of GDP. What actually happened was that in 2014-15, debt carried on rising up to over 80% of GDP. Was the Chancellor not right yesterday to have completely repudiated previous Tory policy?

[Alok Sharma]

The right hon. Gentleman knows that I have a huge amount of respect for him—we have had very good discussions in other roles that I have had. He will know that in 2010, when the Conservatives took over in Government, we were on the brink—the economic precipice—and I do not think that, in private, he would disagree with that. We also had a record deficit, and that is now down to less than 2%. The shadow Chancellor talked about the impact on real people. What I am laying out is the precise impact that the Government’s policies have had on real people by improving their employment prospects and their earnings.

[Stephen Timms]

The absolute imperative was to eradicate the deficit by 2015. Today, the right hon. Gentleman is boasting that it is down to 2% five years after that.

[Alok Sharma]

I am a modest man. I do not like to boast—I just like to state facts, and the fact is that we have record levels of employment in our country.

Let us talk about what has happened for businesses. Since 2010, we have seen corporation tax come down by 9% to be the lowest in the G20. Business registrations are up by over 60%, with nearly 150,000 more firms registered in 2010. Wages growth has been outpacing inflation for 23 consecutive months. The UK is in the top 10 countries in the World Bank’s ranking for ease of doing business and in the top five of the Global Innovation Index. [Interruption.] I do not know—maybe the shadow Chancellor finds that funny, but I do not. I think it is something that we should be very proud of in this country.

I certainly am delighted to be part of the most business-friendly Government ever, and of course, we want to go even further. We are extending the British Business Bank’s start-up loan scheme for a further year, supporting up to 10,000 loans. We are providing another £200 million for life sciences and more funding for growth hubs. In short, we are on the way to making the United Kingdom the best place in the world to start and grow a business.

Of course, the best businesses need the best ideas. Research and development drives up productivity, which leads to high-value, high-wage employment and an increase in exports. That is why I am delighted, as I know Government Members are, that we are committing to spend £22 billion a year on research and development by 2024-25. This is the fastest and largest increase in Government R&D spend ever and there is a multiplier effect, for every pound of public R&D spend delivers around £7 of economic benefit for the country as a whole.

Britain is home to four of the world’s top 10 universities. We are a world-leading nation when it comes to winning Nobel prizes. The UK has produced around 14% of the world’s most impactful research. UK researchers and businesses are cutting carbon emissions, curing genetic diseases and pushing the frontiers of artificial intelligence. Ours is a country that gave the world penicillin, the steam railway and the worldwide web, and we are turbo-charging this tradition of invention and discovery by establishing a brand-new research funding agency, letting researchers pursue high-risk, high-reward projects. We are betting big on Britain’s pioneers and problem solvers as they seek to transform every aspect of our lives, from the journeys we make to the medicines we take.

We have already seen how public R&D funding can create centres of excellence right across the United Kingdom. In Coventry, the UK Battery Industrialisation Centre will soon be developing new ways of scaling up factory production for electric vehicles. In Manchester, the Graphene Engineering Innovation Centre is helping to make cutting-edge composites for affordable electric vehicles. In Harwell near Oxford, our Satellite Applications Catapult is working on applications to remove space debris from orbit. In Scotland, we are backing a world first medicines manufacturing innovation centre, which will help new drugs to reach patients faster. In Northern Ireland, our Digital Catapult is providing mentoring and advice to help cyber-security firms to scale up and succeed. In Wales, we are backing the first compound semiconductor cluster anywhere in the world—a technology that could underpin everything from wearable health sensors to autonomous vehicles in the years ahead.

I am determined that as the UK forges a path as a science superpower we use that opportunity to level up centres of excellence across our whole country. As part of that, my Department, with the Treasury, is committing to creating a northern campus, but I want to be clear that levelling up and having staff across the country has always been part of my Department’s agenda. Some 84% of its partner organisations are already based outside London, while BEIS itself already has sites across the UK, including in Aberdeen, Birmingham and Cardiff.

In the coming years, we will need to make the most of ideas, innovations and solutions from each and every corner of our United Kingdom. The shadow Chancellor will agree that nowhere is that more true than in tackling climate change. Part of my Department’s mission is to deliver clean energy and to lead on the path to net zero emissions by 2050. Since 2010, as a result of the actions we have taken, the United Kingdom has cut its carbon dioxide emissions by around 30%. Driven by investment in renewables, 99% of the UK’s solar photovoltaic capacity has been deployed since 2010. Today, the UK has more installed offshore wind capacity than any other country in the world.

Our contracts for difference auctions have helped to reduce the price of offshore wind by two thirds in the last five years. The UK already has more than 460,000 jobs in the low-carbon sector spread right across our country. From Siemens in Hull to MHI Vestas on the Isle of Wight, we have seen hundreds of new jobs making turbine blades, and last year Ørsted launched the world’s largest offshore wind operations and maintenance facility in Grimsby.

In yesterday’s Budget, the Chancellor announced that he would more than double R&D spend in the energy innovation programme. The Budget backed nuclear fusion to develop and build the world’s first commercially viable fusion power plant by 2040. It backed low-emission vehicles, including with funds to support the roll-out of a fast charging network for electric vehicles, and it will fund a new heat network scheme and put £800 million behind two or more carbon capture and storage clusters, one by the mid-2020s and a second by 2030. [Interruption.] I hear the hon. Member for Stalybridge and Hyde (Jonathan Reynolds) chuntering, if I may call it that—I do not mean to be rude—from a sedentary position. I hope he will appreciate that carbon capture and storage will have to be part of the mix going forward, which is why we are investing almost £1 billion in it.

Oral Answers to Questions

Debate between Stephen Timms and Lord Sharma

Monday 18th March 2019 Commons Chamber

[Alok Sharma]

Our frontline staff deliver vital support to more than 20 million people across the country, and of course we are committed to supporting them in their roles. That includes monitoring staff levels and ensuring that their caseloads are indeed manageable.

[Stephen Timms (East Ham) (Lab)]

T5. When Bright Blue surveyed claimants for its new universal credit report, it found that the five-week wait was their biggest concern. According to the report: “Only a handful of interviewees said they had enough…to cover their expenses in this period.”The Secretary of State cannot justify the five-week wait. Will she scrap it?

Universal Credit

Debate between Stephen Timms and Lord Sharma

Monday 14th January 2019 Commons Chamber

[Alok Sharma]

My right hon. Friend has highlighted a very important point. He has talked of the incredibly hard-working DWP staff in the Haywards Heath jobcentre, but the Secretary of State and I see the same hard work as we go up and down the country talking to our colleagues in jobcentres. They are all incredibly committed, and they see the benefits of universal credit in helping people and ensuring that claimants have the one-to-one support that was not in place before.

[Stephen Timms (East Ham) (Lab)]

I also welcome these modest steps in the right direction, but why did the Secretary of State and the Minister both deny a week ago the change that the Minister has now announced about the separate regulations for the 10,000 migration? Will the Minister respond to the point made by the Father of the House, the right hon. and learned Member for Rushcliffe (Mr Clarke)? The five-week delay is indefensible; it is forcing people to rely on advances, putting them into debt right at the start of their claim.

[Alok Sharma]

I know that we have had this exchange before, and I am sorry if the right hon. Gentleman feels that I repeat myself. Of course it is important that we get money in people’s pockets early. There is no question about that, and that is why we made the changes when we said we would make sure that absolutely anyone who needed it could get up to 100% of their advances up front. I have talked about the two-week run-on for those on housing benefit, which does not have to be repaid, and as the right hon. Gentleman knows in the last Budget we also announced that from July 2020 those on out-of-work DWP benefits will also get a two-week run-on.

Universal Credit: Managed Migration

Debate between Stephen Timms and Lord Sharma

Tuesday 8th January 2019 Commons Chamber

[Alok Sharma]

I thank my right hon. and learned Friend for his support. We have always said there will be a test phase, and that is what we will have. He is absolutely right to highlight that the introduction of tax credits was not a success, whatever Opposition Members may say. It is absolutely right that we listen and learn, and that is precisely what we will do as we go through the test phase.

[Stephen Timms (East Ham) (Lab)]

Tax credits were a great success. In answering my question yesterday about the five-week wait before claimants are entitled to their benefit, the Minister pointed out that advances are available. That is true, but of course that means people are indebted to his Department right at the start of their claim. Press reports at the weekend stated that the roll-out would be paused because of worries about growing indebtedness. Are Ministers concerned about rising indebtedness among benefit claimants because of universal credit?

[Alok Sharma]

As I said yesterday, I know the right hon. Gentleman takes these issues extremely seriously, but so do we. That is why we introduced a change last year to ensure that advances of up to 100% are available on day one. Some 60% of those who come on to universal credit now take advantage of those advances. There is also the two-week run-on for housing benefit and, as he knows, we set out in the Budget further measures, which will come into place in 2020, when those moving across from out-of-work DWP legacy benefits will also get run-on.

Oral Answers to Questions

Debate between Stephen Timms and Lord Sharma

Monday 7th January 2019 Commons Chamber

[Alok Sharma]

My hon. Friend highlights a very important point. Youth unemployment has almost halved since 2010, and we have the youth employment support programme to thank for that—the work we do through jobcentres in schools to make sure that people do not end up not in education, employment or training. Ultimately, however, this is about supporting people through the process, and that is what we are doing in universal credit.

[Stephen Timms (East Ham) (Lab)]

I hope it does turn out to be the case, as reported, that the Secretary of State is going to pause the roll-out of universal credit in order to fix it. I hope she has noticed that the right hon. Member for Chingford and Woodford Green (Mr Duncan Smith) congratulated her because he thought that that was what she had decided. Can the Minister assure the House that those who are being transferred to universal credit from other benefits will not have to wait five weeks before they are entitled to support? That is what is forcing them into debt.

[Alok Sharma]

I know the right hon. Gentleman cares very deeply about these issues, and we have had many discussions about this. It is precisely to help people with their cash flows that we have made advances available up front—up to 100%, if that is what they require—as well as two weeks of housing benefit run-on.

Universal Credit

Debate between Stephen Timms and Lord Sharma

Tuesday 16th October 2018 Commons Chamber

[Alok Sharma]

As I have just said, 85% of childcare costs can be recouped under universal credit, which is an improvement on the legacy system.

[Stephen Timms (East Ham) (Lab)]

I welcome the reports of imminent reform. Ministers can justify the five-week delay in universal credit only in cases where people have just left a monthly paid job. Yesterday, he told the House:

“The five-week wait has no savings implications for the Exchequer.”—[Official Report, 15 October 2018; Vol. 647, c. 395.]

Will he therefore now scrap it?

Oral Answers to Questions

Debate between Stephen Timms and Lord Sharma

Monday 15th October 2018 Commons Chamber

[Stephen Timms (East Ham) (Lab)]

T8. Ministers defend the five-week wait for universal credit on the basis that employees will have had a month’s pay in their bank account when they left their previous job. Does the Minister accept that that case simply does not apply to employees paid weekly or those on zero-hours contracts?

[Alok Sharma]

I have huge respect for the right hon. Gentleman, as he knows, but that is precisely why we introduced this £1.5 billion of support earlier this year, which means people can get advances up front—up to 100%—and those on housing benefit get a two-week run-on, which is money that does not have to be repaid.

Oral Answers to Questions

Debate between Stephen Timms and Lord Sharma

Monday 2nd July 2018 Commons Chamber

[Alok Sharma]

May I commend my hon. Friend on all the work she does in her constituency? Youth unemployment is at a record low—it is 40% lower than it was under the last Labour Government—and programmes such as the youth support programme are available to help individuals. We value young people. It is about time that Labour did the same.

[Stephen Timms (East Ham) (Lab)]

A Minister suggested earlier that the policies of the Labour Government had not reduced poverty. Are Ministers not aware that child poverty was reduced by 800,000 over 13 years thanks to the policy of the Labour Government? Are they also aware that it is now rocketing?

[Alok Sharma]

As the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for North West Hampshire (Kit Malthouse), made clear, since 2010 there are 300,000 fewer children living in absolute poverty. As we have heard, the route out of poverty is work. We have record levels of employment, and that is something we should all welcome across the House.

Oral Answers to Questions

Debate between Stephen Timms and Lord Sharma

Monday 5th February 2018 Commons Chamber

[Alok Sharma]

I want to be absolutely clear: the changes that we are making in universal credit and in the benefit system are there to focus on protecting the most vulnerable. That is the underlying policy of universal credit and we will continue to do that.

[Stephen Timms (East Ham) (Lab)]

Has the Minister had any discussions with colleagues in the Department for Education about their proposals for the eligibility of universal credit claimants to free school meals? If the current proposal were to go ahead, it would introduce a huge new benefit trap into the system, far worse than anything in the old system. Universal credit was supposed to remove such traps, not create new ones.

[Alok Sharma]

Currently, 1.1 million young people—students—receive free school meals. If the policy that has been put forward as part of the consultation goes ahead—where there is an earnings threshold of £7,400—an additional 50,000 young people will benefit from free school meals.

Private Landlord Licensing

Debate between Stephen Timms and Lord Sharma

Wednesday 15th November 2017 Westminster Hall

[Alok Sharma]

Let me briefly address the issue of rogue landlords, because the hon. Gentleman makes an important point. Local authorities in England already have strong powers under part 1 of the Housing Act 2004 to tackle poor property conditions and overcrowding in privately rented properties. They can serve improvement notices that require landlords to carry out works to remedy poor conditions, or make prohibition orders to prevent overcrowding. In the most serious cases, which pose a significant risk to the health and safety of tenants and their families, local authorities are under a duty to take action to combat the problem. Landlords who fail to comply with an improvement notice or prohibition order are committing a criminal offence.

The hon. Gentleman raised the issue of rogue landlords, and I will just say that we have gone further in tackling such landlords by introducing new powers in the Housing and Planning Act 2016, which mean that non-compliant landlords can face a civil penalty of up to £30,000. The local authority involved can also recover its legal costs of serving notices. Furthermore, we have enabled local authorities to keep the income from such fines to support their enforcement capability, and local authorities have a right to inspect properties to make sure they are in safe condition, even if the tenant has not complained.

Newham Council has used its database to identify those rented properties where enforcement under part 1 of the 2004 Act might be required. Local authorities do not need a licensing scheme to be in place to inspect and take enforcement action against poor property conditions in the private rented sector.

[Stephen Timms]

I am very grateful to the Minister for giving way. I am listening to his speech with a lot of interest and I am grateful to him for the points he has made to acknowledge the effectiveness of what has happened in Newham. However, does he accept that the licensing scheme in Newham provides the local authority with a lot of information that it otherwise would not have, and that that information enables it to focus attention—together with the police, the fire brigade and other agencies—on the minority of properties where there are potentially the most serious problems?

[Alok Sharma]

The right hon. Gentleman has set out his case and how the borough has worked with other agencies. I just say to him now that the submission from the borough will be coming in front of me, so I do not want to prejudice any decision that I may make.

In conclusion—

Oral Answers to Questions

Debate between Stephen Timms and Lord Sharma

Monday 17th July 2017 Commons Chamber

[Stephen Timms (East Ham) (Lab)]

12. What assessment he has made of the effect of borough-wide licensing schemes for private rented sector landlords on standards and safety in that sector.

[The Minister of State, Department for Communities and Local Government (Alok Sharma)]

Licensing can be an effective tool where it is targeted at delivering improved standards and safety in the private rented sector for areas suffering from serious problems. As the right hon. Gentleman will know, in April 2015 further conditions for applying selective licensing were introduced.

[Stephen Timms]

Newham Council introduced the first borough-wide private rented sector licensing in 2013. Last week, the council applied to renew the scheme for a further five years. It has been very successful, enabling the council, working with agencies such as Her Majesty’s Revenue and Customs, to concentrate resources on the small number of private landlords causing problems. Some 81% of Newham residents say it has been effective. Can the Minister reassure me that renewal of the scheme will get the go-ahead?

[Alok Sharma]

I can certainly reassure the right hon. Gentleman that the scheme will be considered on its merits and in accordance with whether it meets the strategy requirements in part 3 of the Housing Act 2004, which was, of course, introduced under a Labour Government.

Human Rights: Burma

Debate between Stephen Timms and Lord Sharma

Wednesday 18th January 2017 Commons Chamber

[Alok Sharma]

I pray forgiveness if I have given the impression that I am dodging the questions, because that has not been my intention at all. The point I have been making is that we have to work together with partners to achieve an outcome. That is what we seek to do in this particular case, and I assure my hon. Friend that we will continue to do that.

[Stephen Timms (East Ham) (Lab)]

My hon. Friend the Member for West Ham (Lyn Brown) and I have been approached by constituents who want to provide help directly to Rohingya communities that need it, in both Burma and Bangladesh. The Minister has talked about access for NGOs; what routes are currently open for the delivery of help where it is needed, and what advice can he give to those who want to help people who are currently suffering such extreme problems?

[Alok Sharma]

I thank the right hon. Gentleman for that question. The area we are discussing is very troubled, and the humanitarian help that is getting through has been quite limited in some parts. If he would like to meet outside of the House to discuss the specifics and who his constituents are, I would be very happy to see whether we can take the matter forward.

Oral Answers to Questions

Debate between Stephen Timms and Lord Sharma

Tuesday 18th October 2016 Commons Chamber

[The Parliamentary Under-Secretary of State for Foreign and Commonwealth Affairs (Alok Sharma)]

My heart goes out to the families. I raised this case with Minister Akbar when I was in India in July, and I raised it again on 5 October with the Indian high commissioner to the UK. I know that my hon. Friend is working incredibly hard to highlight this issue and I look forward to meeting him and hon. Members representing the other families tomorrow.

[Stephen Timms (East Ham) (Lab)]

T3. My hon. Friend the Member for Birmingham, Selly Oak (Steve McCabe) asked earlier about Londoner and British citizen Andy Tsege, a political dissident who was kidnapped in June 2014. In June this year, the Foreign Secretary’s predecessor announced in a press release that he had“secured assurances from the Ethiopian Government that Mr Tsege will be granted access to a lawyer”.Those assurances have not been honoured. Will the Foreign Secretary now formally request the release of Mr Tsege?

Compulsory Jobs Guarantee

Debate between Stephen Timms and Lord Sharma

Wednesday 11th February 2015 Commons Chamber

[Stephen Timms]

But long-term unemployment is higher in the hon. Gentleman’s constituency now than it was at the time of the last election. That is the legacy of the three years of almost no growth in the economy following the general election, which we now need to address. Let me say to him and to other Government Members that self-congratulation on what has happened in recent months is dangerously complacent about underlying problems in the labour market and utterly out of touch with the impact such problems have on people who are desperate to work and to earn their way out of the cost of living crisis they are facing. People are deeply concerned about the prospects for their children and the grandchildren. Those are the points we now need to address.

[Alok Sharma (Reading West) (Con)]

The right hon. Gentleman talks about self-congratulation, but that is not what Government Members are doing. We are recognising that policies have been put in place for businesses to create more than 2 million jobs. Why will he not congratulate the Government on their policies and businesses on creating those 2 million-plus jobs?

[Stephen Timms]

We were left with a legacy of a very large number of people who have been out of work for a long time. It is welcome that at long last the economy is growing and jobs are being created; the long-delayed recovery is now, finally, in place. The question is: are those who have been left out of employment by the events of the past few years going to get the opportunities that these new jobs will create? Addressing that is exactly the purpose of this afternoon’s debate and of the proposal I am commending to the House.

--- Later in debate ---

[Stephen Timms]

Very few. There is the good example of Jaguar Land Rover taking on a group of young people under the future jobs fund, and my understanding is that every single one of those young people was kept on in their job when the wage subsidy ended. The future jobs fund was largely about the charity and public sectors; the guarantee is largely about the private sector, exactly as Jobs Growth Wales has been.

[Alok Sharma]

The right hon. Gentleman is keen to talk about numbers, so let me give some from his own constituency. In May 2010, there were 410 jobseeker’s allowance claimants who had been unemployed for more than a year. In December 2014, the figure was 225. In May 2010, the six-month figure was 1,585, but in December 2014 it was 1,045. Will he not acknowledge that, even in his own constituency, this Government’s policies are making a difference and people are getting real jobs?

[Stephen Timms]

Those figures, in my constituency and in his, are far too high. A great deal more needs to be done to enable young people in particular, but long-term unemployed over-25s as well, to share in the benefit of the recovery that is, at last, under way.

[Stephen Timms]

My hon. Friend is right. I have spoken to many people, including those who went through the future jobs fund, who say exactly that: having the break of getting six months in a job, becoming familiar with the habits and routines of work, and putting that on their CV enabled them to thrive.

This policy is not just an immediate intervention to limit youth and long-term unemployment; it is an investment in the skills and employability of the British work force, underpinning our productivity, growth potential and fiscal sustainability into the future, but we have been clear that there will be no commitments in our manifesto that require more borrowing. Therefore, we have set out clear plans to fund the policy fairly and prudently.

In the first year, to provide for the large number of long-term claimants left by this Government’s policies, we would pay for the policy with a repeat of the successful bank bonus tax, which was levied in 2010. That could raise £2 billion. In future years, the costs would be covered by restricting pensions tax relief for the highest paid—those earning more than £150,000 a year—to 20%. The House of Commons Library has estimated that that could raise between £900 million and £1.3 billion a year. That is a fair and prudent way to fund jobs for young people and the long-term unemployed, and to fund the guarantee throughout the next Parliament.

[Alok Sharma]

rose—

[Stephen Timms]

I will not give way again.

Those measures have been opposed and rejected by Government Members, but we have seen where five years of their trickle-down philosophy has taken us—five years of protecting privileges for a few at the top while leaving the rest to fend for themselves.

Our plan is to put working people first, ensuring that those who can and should work are in work, that we make the most of their talents and that hard work is always rewarded. That is the way to secure a recovery from which everybody can benefit and to get social security spending under control and our public finances on a sustainable footing. That is the way to secure a future in which prosperity and social justice go hand in hand and ensure that the next generation can look forward to a brighter future. That is the plan our country needs. This Government will not deliver it. We can be thankful that the time is not far off when we can elect a Labour Government who will.