Local Government Finance

Steve Double Excerpts

Wednesday 7th February 2018 Commons Chamber

[Rishi Sunak]

We have gone above and beyond the four-year deal in listening and responding to what the sector wants. That is why last year we allowed increased flexibility in the use of the adult social care precept, and why this year we have proposed additional flexibility on the core council tax referendum principle.

On adult social care, of which we have heard much today, on top of the extra £2 billion announced at the spring Budget last year, we have now announced an additional £150 million extension to the adult social care support grant, and we have increased the rural services delivery grant to its highest-ever level.

We are also building on the highly popular business rates retention scheme. Local authorities estimate that in the year just finishing they will keep about £1.3 billion in business rates growth, and we expect this to be maintained going forward.

[Steve Double (St Austell and Newquay) (Con)]

The Minister knows that I have raised a number of times the issue of people avoiding paying both council tax and business rates on holiday homes by converting them to business use and enjoying small business rate relief. Councils in tourist areas are losing out from that. Will he commit to trying to close that loophole?

[Rishi Sunak]

I thank my hon. Friend for his intervention. He rightly points out that he raised this issue in Prime Minister’s Question Time earlier and has made representations to me about it. I am pleased to confirm that my officials and I are looking into the matter. He makes the point well. The existing system does leave some scope for ambiguity, and we will look into that.

The vital funding that comes from business rates retention—over £1 billion—is a direct result of local authorities driving economic growth in their areas, and it is on top of the core settlement funding that we have announced today. Over the long term, local government will be transformed, becoming increasingly self-sufficient with local resources funding local services. But to achieve that, we all know that the funding formula needs to become fairer, more transparent and more responsive to changing demands. Getting it right will of course be a challenge, but the prize if we can do that is a system that will be truly fit for the modern world and allow councils to face the future with confidence.

The business rates retention proposals that we mentioned earlier are a key step in this journey, and we hope to see local authorities retaining 75% of business rates from 2020-21. There is a great deal of enthusiasm across the country for this new model, and I can assure the House that I and my Department are committed to working with the sector to make this a success.

I turn briefly to some of the specific points that have been made. The hon. Member for Sheffield South East (Mr Betts) and my hon. Friend the Member for North Dorset (Simon Hoare) were right to pay tribute to local councillors who have, we acknowledge, made difficult decisions and have done an extraordinary job over the past few years. My hon. Friends the Members for Shrewsbury and Atcham (Daniel Kawczynski), for North Dorset, for Waveney (Peter Aldous), for Redditch (Rachel Maclean) and for Ludlow (Mr Dunne) talked about rural areas and the need for fair funding. I can assure them that we are committed to that. The fair funding review will specifically take a fresh look at how council tax should be taken into account when redistributing income, and relative costs of delivering services will also be considered.

My hon. Friends the Members for Corby (Tom Pursglove) and for Wellingborough (Mr Bone) rightly talked about the role of governance and leadership in local councils. They were followed by my hon. Friend the Member for Newton Abbot (Anne Marie Morris), who rightly said that it is not just about how much, but how it is spent. Unaccompanied asylum seekers and the costs that councils have to bear were raised by my hon. Friend the Member for Corby and the hon. Member for Dover (Charlie Elphicke). I am pleased to announce that the Government have allocated funding from a £29 million pot for exactly that. My hon. Friend the Member for Corby will be pleased to know that Northamptonshire will receive £231,000 from that grant, and the hon. Member for Dover will know that Kent will receive more than £1 million.

Opposition Members talked a lot about whether the funding was fair. They pointed to Knowsley, so they will be pleased to learn that it receives core spending power per dwelling 26% higher than the average. Indeed, across the country, the 10 most deprived local authorities receive core spending power per dwelling 23% higher than the least deprived. We heard a lot from the Opposition about money. Indeed, the hon. Member for Dover put it well: there is no question to which the answer is not more money. We all know where that money has to come from—our hard-working taxpayers. Under the last Labour Government council tax doubled, and that is what we would have to look forward to again.

This is a settlement that honours our commitment to local government—delivering certainty, recognising the challenges and making additional resources available, all while keeping excessive council tax rises in check. It gives councils the resources they need to provide the world-class services that their communities expect and deserve. I commend it to the House.

Question put.

The House proceeded to a Division.

Space Industry Bill [Lords]

Steve Double Excerpts

2nd reading: House of Commons
Monday 15th January 2018 Commons Chamber

[Steve Double (St Austell and Newquay) (Con)]

It is a pleasure to speak about this important Bill and to follow the hon. Member for Central Ayrshire (Dr Whitford), who shares my keen interest in this matter.

I greatly welcome the Bill, which will set out the framework for the growth and development of this exciting sector. If we are to maintain and improve our national position as a global economic power, it is vital that we should participate fully in the expected growth of the space industry. It is absolutely right that the Government should be ambitious and that they are putting in place the necessary measures to ensure that our country benefits from the rise in demand for commercial satellites and the emerging sub-orbital spaceflights.

As we have heard, there is the potential for people to fly from this country to Australia in about four hours. I add something for the consideration of the Under-Secretary of State for Transport, my hon. Friend the Member for Hereford and South Herefordshire (Jesse Norman): that is quicker than it takes me to get from London to my constituency in Cornwall by train. Will my hon. Friend look favourably on the Peninsula Rail Task Force report on reducing train travel times to the west country so that I can get home as quickly as I hope to be able to get to Australia one day?

If the Government had not taken the opportunity to draw up the Bill and put the regulation and licensing framework in place, it would have been a dereliction of duty: the missing of a golden opportunity for the future of our nation. That is why I greatly welcome the Bill and am delighted to support it. We have to be ready to move quickly. We live in a fast-changing world in which we are surrounded by new and emerging technologies. We have already heard about the potential of autonomous vehicles, and I put the space sector alongside that technology—we are going to see rapid change and growth in the space sector, and we as a country need to be ready and to have the regulations in place. We need to support our businesses and industry so that we can make the most of the coming opportunities.

My one concern about the Bill, also mentioned by other Members, is about limited liability for operators. I have met a number of potential operators and all have raised the desperate need for clarity about the limit of liability. They cannot currently get insurance and that could be a brake on investment in this emerging industry. Will the Minister consider that quickly as the Bill progresses so that we can provide certainty to the industry and so that it can know the limits and get insurance cover? That would give it the confidence to develop further.

As many Members will be aware, I have a particular interest in this matter. Cornwall Airport Newquay is in the constituency that I have the honour of representing, and it is one of the potential sites for the UK’s first spaceport. I was not going to go into detail about why I think Newquay should be the first spaceport, but as the hon. Member for Central Ayrshire promoted Prestwick, I feel duty bound to do the same for Newquay.

[Mrs Sheryll Murray]

Will my hon. Friend clarify what I think was misunderstood by the hon. Member for Central Ayrshire (Dr Whitford)? Unlike Prestwick, which is near Glasgow airport, Newquay is not competing with another airport for airspace. Is that my hon. Friend’s understanding as well?

[Steve Double]

Absolutely. Newquay has several things in its favour. It has a very large runway and easy access to uncongested airspace over the Atlantic. There are literally hundreds of acres of development land in an enterprise zone ready for developing the necessary business and manufacturing that would support a spaceport. Uniquely, I believe, we also have the space enterprise zone through our partnership with Goonhilly satellite station. That makes us in Newquay very well placed to be the first UK spaceport.

Although Newquay should be the first spaceport, it should not be the only one. As the hon. Member for Central Ayrshire said so well, there will be a need for further spaceports as the industry grows in our country. I believe that we will want to be launching satellites, putting people into space and operating sub-orbital flights from across the country, not just one location, much as I would love Newquay to be that location.

[Mr Nigel Evans]

My hon. Friend will be pleased to learn that I am not about to make a bid for the Ribble Valley.

Particularly if we get more than one spaceport, that will be a great boost to industries and SMEs that are interested in space. Some may be involved in contracts with the European Space Agency, to which we gave £1.4 billion in additional funding from 2016 for five years. Does my hon. Friend agree that, irrespective of what we do domestically and of our leaving the European Union, we should continue our investment in that agency? That is not a European Union issue.

[Steve Double]

I am grateful to my hon. Friend, who makes his point well. Another concern of the UK sector is our continued involvement in the European Space Agency post-Brexit. I join him in urging the Government to continue to play an active part and to participate in that agency, as that will be essential for the industry in this country.

[Vicky Ford]

Does my hon. Friend agree that it is absolutely vital that we continue to take part not just in the European Space Agency but in its downstream operations? I am thinking about data sharing and the ability to bid on downstream contracts.

[Steve Double]

I agree. We need to continue to participate in the industry on a global scale; probably more than any other, it cannot be restricted to just one country. It is essential for us to continue to participate in the global sector, whether in the EU or in other parts of the world.

If the spaceport came to Cornwall, it would give a huge economic benefit to one of the most deprived and lowest paid parts of the country. Cornwall is well known for its tourism and food and drink sectors, which are absolutely vital for our local economy. Who knows? One day, Cornwall could also be sending tourists into space. Generally, however, those sectors are regarded as low paid and providing limited career opportunities for people. We are trying to change that perception, but that is often how they are regarded.

Cornwall has an illustrious history when it comes to engineering and innovation. Let us remember that the steam engine, which brought about the industrial revolution, was invented there. The first ever transatlantic telegram—the forerunner of the modern communication revolution—was sent from Cornish soil. Now, Cornwall is ready to play its part at the heart of the space industry of the future. Newquay’s bid is backed right across Cornwall by the business sector, the chamber of commerce, the local enterprise partnership and Cornwall Council. We are ambitious and we want to play our part to the full.

The LEP has estimated that bringing the spaceport to Cornwall would create some 1,000 new, well-paid jobs, which could be vital to our future economy. In addition, I believe that it would do something that is beyond economic measure, namely to inspire Cornish young people and provide them with the opportunities that they desperately need. For far too long, our Cornish young people have faced the choice of staying in Cornwall and lowering their aspirations, or leaving to fulfil their potential and pursue a career. Bringing such jobs to Cornwall would give our brightest and best the opportunity to have a well-paid job and a good career in an exciting sector in Cornwall, rather than having to leave.

[Dr Whitford]

Regardless of where the spaceport is, I would hope that the future space industry in the UK will be diffuse, just as we have Surrey satellites and Glasgow satellites. The idea is not for the whole industry to be where the spaceport is. I hope that that aspiration will remain, whether Cornwall is No. 1, is No. 2 or takes a bit longer to get a spaceport.

[Steve Double]

The hon. Lady makes a good point, and I agree with her. We cannot put a value on the inspiration that would be provided for our young people by having a spaceport, which they could see and interact with, on Cornish soil. As has been mentioned, we saw the inspiration that Tim Peake brought to schools across the country. We recently had the Bloodhound at Newquay airport, and 4,000 Cornish schoolchildren had the inspirational opportunity of going on a day out to see the rocket car going down the runway. That gave them an incredible sense of what was possible, and it inspired them to engage with science and engineering and pursue STEM subjects. Putting the spaceport in Cornwall would have a similar, ongoing effect on Cornish schoolchildren. We have lacked such ways of inspiring our young people for far too long.

I will bring my thoughts to a conclusion. I am happy to support the Bill, whether or not there is a vote this evening. I am delighted that the Government have introduced it at this point, and I believe we need to get on with it. I am absolutely delighted that the Government are backing the industry by giving it the confidence and framework that it needs to move forward, and that they are ambitious for our country to be a world leader in this sector. Cornwall is ambitious about playing its part to the full.

[Several hon. Members rose—]