Concentrix

Tristram Hunt Excerpts

Wednesday 26th October 2016 Commons Chamber

[Tristram Hunt (Stoke-on-Trent Central) (Lab)]

My hon. Friend is making a forensic case. Behind these facts and figures are very real human cases of people, particularly women and single mothers, who are being absolutely hammered by Concentrix. I have constituents who are going hungry, and whose children are going hungry, because of the incompetence of Concentrix. That is what we need the Minister to answer about.

[Rebecca Long Bailey]

My hon. Friend makes a powerful point; he is 100% correct. This is not simply a case of rapping Concentrix on the back of the hand. These contractual failings have caused real human suffering, and the Government need to address them urgently.

Budget Resolutions and Economic Situation

Tristram Hunt Excerpts

Tuesday 22nd March 2016 Commons Chamber

[Tristram Hunt (Stoke-on-Trent Central) (Lab)]

I think we can all agree that this has been a pretty disastrous Budget, and that was the case even before the right hon. Member for Chingford and Woodford Green (Mr Duncan Smith) revealed the Government’s extraordinary mendacity in their pursuit of policies for political purposes rather than for the national economic interest. What is worse, as my right hon. Friend the Member for Wolverhampton South East (Mr McFadden) said, they are hammering the working-age poor because they do not vote Conservative.

Even on the Chancellor’s own terms, it is a shocking state of affairs. He has breached two of his three fiscal rules. Indeed, this Budget might end the period of fiscal rules that we have enjoyed for the past two decades. He has failed to meet his commitments to get debt falling as a share of GDP each year and he has failed to cap welfare spending. He tried to sweeten that with a spoonful of sucrose replacement, but we all saw through it.

The Chancellor is on track to meet only his third target, because he is deploying all sorts of fiscal shenanigans. He is rescheduling capital investment and shifting a one-off boost to corporation tax receipts. We also have to find £3.5 billion in unprotected spending.

The Chancellor is now set to borrow £38 billion more over the course of this Parliament than he planned just four months ago. Worst of all, this Parliament of productivity has stalled at the first outing. The OBR is clear on the collapse of productivity, even over the past six months.

Where I do agree with the Government is on the risk posed to our economy by fears of Brexit. The latest evidence from the CBI spells out the immediate costs to the British economy. Why, at a time of such fragile economic growth, would we knowingly want to turn our back on one of the most successful single markets in the world?

The key issue that we look at today is the morality of this Budget. To balance the books, the Prime Minister has chosen to focus on the weakest and most vulnerable in society. As the IFS has reported, the Government’s tax and benefit changes have

“resulted in significant losses for those of working age in the bottom half of the income distribution.”

Then came the hit on the disabled, with the assault on PIP, now thankfully reversed. But who gained from all that? Well, it was those paying capital gains tax. Half went to 35,000 individuals with incomes of £100,000 a year or more. It is a totally shocking result. According to the Resolution Foundation, the poorest 30% of households are set to lose around £565 by 2020, while the richest 30% of households are set to gain around £280. That is the morality of the Conservative party, and that is why we will be voting against the Budget tonight.

Budget Resolutions and Economic Situation

Tristram Hunt Excerpts

Monday 21st March 2016 Commons Chamber

[Toby Perkins (Chesterfield) (Lab)]

rose—

[Tristram Hunt (Stoke-on-Trent Central) (Lab)]

rose—

[Greg Clark]

I will not give way.

Not for us the discredited model of a one-city economy, because much as we value London it is wrong to rely on a single centre of wealth creation. Instead, wealth must be created and retained in communities across our nation —hence our ongoing commitment to HS2, a north-south axis linking London to the midlands engine and to the northern powerhouse. Quite literally, we must go further. We must build the vital east-west links needed to unlock the full potential of our great cities beyond London.

The Pennines might be the backbone of England, but frankly they are not the Himalayas. Some of our nation’s greatest cities stretch like a string of pearls across the north—and they can and should be drawn together. That is why this Budget strikes out in a new direction with the key announcement on HS3.

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[Greg Clark]

I have already given not only the page, but the line number—and the hon. Gentleman too should have done his homework.

I am delighted to say that the remit of the National Infrastructure Commission will be expanded to include large housing developments. It is vital that the big decisions we make on transport and utilities infrastructure are co-ordinated with those we make on housing. As well as building more homes, we need to build better homes. The idea that we can sacrifice quality to achieve quantity is utterly wrong-headed. The only way to build the homes we need over the long term is through forward planning, good design and sound finance.

That is why the Budget lays the groundwork for a new generation of garden villages, towns and cities. We will provide targeted support for local authorities to develop locally led schemes. We will adjust the legislative framework to speed up and simplify the process of delivering new settlements. We will adopt a localised, deal-making approach to planning reform, working with councils to tailor the system to local needs in return for commitments on housing delivery. Instead of trying to force new housing through a fundamentally unreformed system—the approach of the last Government—this Government understand that only a different policy can deliver different results.

[Tristram Hunt]

rose—

[Greg Clark]

There are time constraints, so I am going to make some progress.

This month marks four years since the introduction of the national planning policy framework. Overnight, 1,300 pages of central Government guidance were replaced with 52 pages of plain English. I see in his place my hon. Friend the Member for Henley (John Howell), who played such an important role in that. It is a crystal-clear guide to achieving sustainable development. We have seen massive improvements in planning performance and housing delivery in that time. Before, most councils did not even have a local plan; now, most of them do; and before long, all of them will.

This is not just about plans, but about planning permissions—and not just permissions, but new homes actually being built. And not just new homes, but popular support for new homes. We are seeing a rekindling of the faith in development that was destroyed under the tenure of the Labour party. There is a sense that development can make places better, not worse—not least owing to another achievement of our planning reforms, including the NPPF, which was to establish a fully fledged system of neighbourhood planning.

I am proud that the neighbourhood planning process is under way in thousands of communities across the country. Through community consultation and neighbourhood referendums, local people have been given a real say. This is proof that when the planning system is made accessible and accountable, we can deliver both quantity and quality. However, we do not regard the progress of the last four years—important though it is—as mission accomplished. Rather, it is a spur to further action: to implement the new measures set out in the summer Budget, the autumn statement and this Budget, and to continue the work of reform until we have fully achieved our vision of a property-owning democracy.

The NPPF was a new start, not an end point. The same applies to the other great reform agenda that my Department is responsible for: devolution. It was four years ago that I stood before this House to announce the first wave of city deals. The response from the Labour party was mixed: disparaging in this Chamber but welcoming beyond the confines of Westminster. Four years on, the process of decentralisation has gone further and faster than even the enthusiasts thought possible.

[Tristram Hunt]

Will the Secretary of State give way?

[Greg Clark]

I am going to make some progress, given that about 60 hon. Members want to speak in the debate.

We have seen a second wave of city deals and the launch of growth deals and devolution deals to encompass cities and shires alike. We have even seen something of a change of heart on the Labour Benches. I very much welcome that, if it is a genuine source of support—however qualified—for the principles at stake. If the party of central planning accepts that power must be exercised locally, that is progress indeed.

Local Government: Ethical Procurement

Tristram Hunt Excerpts

Tuesday 15th March 2016 Westminster Hall

[Chloe Smith (Norwich North) (Con)]

Thank you, Mr Speaker—I mean Mr Streeter—for calling me to speak. Aside from promoting you, I congratulate the hon. Member for Birmingham, Northfield (Richard Burden) on having secured this debate.

I will take as my starting point the wisdom that regularly emerges from the mouth of the hon. Member for Ealing North (Stephen Pound), for whom I have great respect. He said that the issue was not about any one country’s policies but about local government powers. I believe that it is wrong for councils to attempt to use local government pension funds and procurement practices to make their own foreign policy.

First, it is wrong because foreign policy is reserved to Westminster as a matter for national Government. Having policy made in town halls can damage foreign relations, to the detriment of Britain’s national and international security.

[Tristram Hunt (Stoke-on-Trent Central) (Lab)]

Will the hon. Lady give way?

[Chloe Smith]

Perhaps the hon. Gentleman will be quick because I have only four minutes.

[Tristram Hunt]

Does that principle extend to banning city councils, for example, from giving the freedom of their cities to notable figures from abroad? Would that fall within her ban on a foreign policy for local government?

[Chloe Smith]

If the hon. Gentleman will wait for the rest of my speech, he will hear that I intend my contribution to be about council expenditure of taxpayers’ money. I know that Labour Members are not so hot on the expenditure of taxpayers’ money, but perhaps he will allow me to make the rest of my comments.

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[Dr Offord]

No. The BDS campaign rejects a two-state solution and denies the Jewish right to self-determination and statehood in favour of supporting the right of return for Palestinian refugees and their descendants.

[Tristram Hunt]

Will the hon. Gentleman give way?

[Dr Offord]

No. In fact, the BDS movement has an anti-Semitic foundation. [Interruption.] No. One of its co-founders is on record as rejecting the right of a Jewish state in Israel—[Hon. Members: “Give way!”] No.

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[Justin Madders (Ellesmere Port and Neston) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Streeter. I start by declaring an interest: both I and my wife are members of the Cheshire local government pension fund.

I congratulate my hon. Friend the Member for Birmingham, Northfield (Richard Burden) on securing this extremely important and timely debate, but of course it should not have been left to members of the Opposition to drag the Minister into a debate to explain the Government’s policy, so I hope that when he responds, he will, as my hon. Friend said, set out why he thought that it was appropriate to announce a change in policy in front of the media in another country rather than in this House, where proper scrutiny could have followed.

As well as the failure to follow any kind of proper process, I am extremely concerned by the tone that Ministers have adopted when addressing this issue. The Secretary of State for Communities and Local Government has accused councils of adopting policies that

“undermine good community relations, and harm the economic security of families by pushing up council tax.”

Those are very serious allegations, but people will note that no specific examples have been given and no specific authority has been referred to. It is therefore a smear against local government as a whole. I challenge the Minister to name a single authority that has increased its council tax as a direct result of the issues that we are discussing today. If he cannot, he should urge the Secretary of State to retract that totally groundless comment and to start treating local politicians and public servants with the respect that they deserve.

Of course, when making such sweeping statements, the Minister ignores the fact that councils are having to increase council tax this year to address the damage that the Government have caused to local government and, in particular, the social care sector. The Secretary of State for Communities and Local Government has so far failed to claim that an explicit demand from the Chancellor to raise council tax, in violation of Conservative manifesto commitments, is harming the economic security of families. That is in stark contrast to the subject matter of this debate. It is only the latest in a series of announcements that set out what this Government really think about devolution, and the contempt with which they continue to treat local government. Their policy on devolution can now be summed up in one sentence: “We will give you as much power as you want, as long as we get to choose what those powers are and exactly how they can be used.”

The Government have so far discussed the changes only in terms of so-called boycotts, but there is understandable unease in the sector about the wider implications for ethical procurement, which is vital if councils are to use their purchasing power to deliver wider benefits to their communities and to honour their election pledges.

Local government procures around £12 billion a year of goods and services, much of it from the UK, but some from the global supply chain. Ethical procurement can produce tangible benefits. For example, in my local Labour council, Cheshire West and Chester, the new adult social care contracts adhere to Unison’s ethical care charter, which stipulates that 80% of the workforce must be on contracted hours, not zero-hours contracts. In the domiciliary care contract, providers pay at least £7.68 per hour.

[Tristram Hunt]

My hon. Friend is making a very powerful speech, in contrast to Government Members. The point about local government is that democracy is not all focused in this place. Decisions about spending, representation and taxation can also be made at a local level. If we strip that out, it undermines the pluralism and democracy of this country.

[Justin Madders]

Absolutely. That is the central point of what I am trying to say today. Our local authority had all-out elections last May. Ethical procurement was one of the key parts of the manifesto commitment, and it has been delivered. I do not believe that any Member of this House would say that that is not a legitimate practice of the local authority. The council is now looking to see how it can use future procurements to encourage more employers in the area to improve the terms and conditions of their staff.

As a result of the Labour group’s suggestions, the council has decided not to use companies involved in union blacklisting. That is a value judgment by the democratically elected councillors about who they want to do business with. I am struggling to see any rational basis for distinguishing between those sorts of decisions and choices and the sorts of decisions referred to in the draft regulations. That is the nub of the matter. If local government is to have genuine autonomy, there might be occasions when people say, “I do not agree with what you are doing, but I recognise your democratic right to exercise that choice.” So I say to Ministers: resist the temptation to micromanage local government. Show us that the Government are genuine about devolution and withdraw the regulations.

Oral Answers to Questions

Tristram Hunt Excerpts

Tuesday 19th January 2016 Commons Chamber

[Damian Hinds]

I am delighted with that news from my hon. Friend’s constituency, and I do indeed agree with her. Across the west midlands, youth unemployment has fallen by almost a quarter on the year, with the rate now returning to pre-recession levels. The west midlands saw the fastest growth in full-time average earnings among all the English regions, and there are some 140,000 more people in work since 2010.

[Tristram Hunt (Stoke-on-Trent Central) (Lab)]

One of the leading employers in Stoke-on-Trent is the ceramic industry, and part of the growth in recent years has been due to the anti-dumping ruling by the EU on subsidised Chinese imports. Shamefully, the British Government opposed that. Will the Minister now commit the Government to supporting the renewal of that anti-dumping ruling when it comes up?

[Damian Hinds]

The Government do of course raise all issues to do with dumping and unfair trade practices as and when they come up. I will be happy to look in further detail at what the hon. Gentleman says about ceramics in Stoke-on-Trent.

Oral Answers to Questions

Tristram Hunt Excerpts

Tuesday 12th March 2013 Commons Chamber

[Mr George Osborne]

That is already planned and was announced last year. In April, people will be £600 a year —£50 a month—better off. We have also taken 2 million people out of tax altogether, which is a sign of our commitment to those on low incomes and a sign of our commitment to all those who work hard and want to get on.

[Tristram Hunt (Stoke-on-Trent Central) (Lab)]

T8. As the Chancellor puts the finishing touches to the Budget, may I, on behalf of the potteries of Stoke-on-Trent, make another plea for applying the mineralogical processing exemption in the taxation of energy products? That would be a helpful sign that the Government understand the needs of energy intensive sectors.

[Mr George Osborne]

I shall take that as a Budget representation. To be fair to the hon. Gentleman, he is always a powerful champion of the ceramics industry in his constituency.

Oral Answers to Questions

Tristram Hunt Excerpts

Tuesday 11th December 2012 Commons Chamber

[The Economic Secretary to the Treasury (Sajid Javid)]

My hon. Friend makes a good point about the protection of individuals using saving or voucher schemes, and I commend her work on raising awareness about that important issue. I know that she raised the issue recently during business questions and received a response from the relevant Minister. If it would be helpful, I will speak with the Minister and raise her ongoing concerns.

[Tristram Hunt (Stoke-on-Trent Central) (Lab)]

T2. May I welcome the funding in the autumn statement for building future schools, or what we call Building Schools for the Future? May I also welcome the extra allowances for capital investment, or what we call capital allowances? Why did we have to wait two years and have a double-dip recession for those good Labour policies to return to government?

[The Chief Secretary to the Treasury (Danny Alexander)]

The hon. Gentleman will recall that the Building Schools for the Future scheme was expensive and inefficient and that we had to scrap it because it was unaffordable. It was one of the many unaffordable promises that he and his colleagues made before the election in order to get people’s hopes up, yet still the former Chief Secretary left a note stating, “There’s no money left.”

Business and the Economy

Tristram Hunt Excerpts

Monday 14th May 2012 Commons Chamber

[Vince Cable]

That suggestion sounds eminently sensible. I do not know the extent to which it is required to be incorporated in the law, but it seems eminently sensible to pursue it in guidance.

[Tristram Hunt (Stoke-on-Trent Central) (Lab)]

Further to the point made by my hon. Friend the Member for Huddersfield (Mr Sheerman), can the Secretary of State explain why there is no higher education Bill in the Queen’s Speech? If we are interested in innovation, skills and training, and future competitiveness, why on earth is there no such Bill?

[Vince Cable]

There were many candidates for the Queen’s Speech—a lot of productive legislation. The reforms in higher education are being pursued successfully. Many of the alarms sounded about the university reforms have not been realised. We can pursue questions about higher education in Business, Innovation and Skills questions next week. This is not about the higher education Bill.

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[Tristram Hunt]

When it comes to industrial policy, is my hon. Friend as worried as I am by the lack of a strategy for intensive energy users in the Government’s plan? There is nothing in the Queen’s Speech, or in the Budget, to protect our steel and ceramics industries, which are vital to a low-carbon future.

[Mr Umunna]

My hon. Friend is right. I know that his constituency contains some of those industries.

The Government refuse to heed the call of businesses to get our economy going, and they refuse to adopt the active industrial strategy that we need. Instead, we have a Chancellor who is seeking to play the same old Tory tunes and watering down employee rights as a substitute for a proper growth strategy, along with a Business Secretary who is at best seemingly powerless to stop the Treasury juggernaut, and at worst going along with its nonsense on employee rights. We do not yet know what form the changes to employment law contained in the enterprise and regulatory reform Bill will take. All that we have been told to date by the Business Secretary’s Department is that the Bill will

“Overhaul the employment tribunal system, and transform the dispute resolution landscape.”

The Business Secretary alluded to that earlier. However, reforming the employment tribunal rules of procedure is one thing; making it easier for companies to hire and fire their workers, as the Government have spun it in the media, is quite another.

In March, the Business Secretary told the House that we already had the most flexible labour market in Europe, a claim that he repeated today. He also said that ours was the second most flexible labour market in the OECD. However, in an opinion piece which appeared in The Telegraph on 7 May and which was referred to by the hon. Member for Stone (Mr Cash), there was the Business Secretary parroting his Tory masters’ line.

“Britain is no longer a lone voice in the push”

for an even more “flexible labour market”, he told us. He then proceeded to round on the working time directive, which he condemned for being “'wasteful”. What has happened in the interim? Why the change of tone? I think that the Business Secretary has been got at.

Let us consider what the working time directive does through the working time regulations that give it effect in UK law. It ensures that workers have at least 11 hours’ rest in any 24-hour period. It ensures that workers have one day off in any seven days. It guarantees four weeks’ paid leave a year, and the right to a rest break of at least 20 minutes during a working day of six hours or more. I know that Ministers do not think we are all working hard enough, but I did not envisage that they would seek to tamper with those basic rights to a modicum of time off and a rest.

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[Tristram Hunt (Stoke-on-Trent Central) (Lab)]

It is a pleasure to follow the hon. Member for Skipton and Ripon (Julian Smith), although I do not think that Opposition Members believe that the fundamental problem facing the British economy is an inflexible labour market. We believe the problem to be the double-dip recession that has been delivered by this Government.

In the year of her diamond jubilee, I believe that Her Majesty wanted to deliver a Queen’s Speech that focused on jobs and growth. This one, combined with the Budget that preceded it, manifestly fails to deliver that, however. The Government are failing all the tests that they have set themselves, from paying down the deficit to promoting economic growth and tackling youth unemployment. We needed a plan to stimulate demand and activity in our economy, but we have failed to receive one.

As some of my hon. Friends have said, there were multiple omissions from the Queen’s Speech. Here, I should declare an interest, as set out in the Register of Members’ Financial Interests, relating to my employment in a university. It was profoundly disappointing that there was no higher education Bill in the Queen’s Speech. Higher education is a highly successful industry that is vital to our future competitiveness. Instead, we are seeing exactly the wrong way to make Government policy. They began by introducing a system of fees that had absolutely no rationale behind it and made our fees structure among the most expensive in the world. They also slashed public expenditure on our universities, which only Romania is doing elsewhere in the European area.

There has been a lack of investment in our higher education structure, and a lack of strategy. The Secretary of State suggested that these were all scare stories, but since the Government introduced the new fees structure we have seen a collapse in demand for humanities and modern language courses. The areas in which the UK has a global competitive advantage are being undermined by Government policy. We need a strategy for higher education, for innovation, for spin-outs, for intellectual property, and for the kind of university-industry collaboration that we all want to see. We have none of that in the Queen’s Speech.

Instead, we have the enterprise and regulatory reform Bill, which contains some decent measures. We would like to see faster progress on the green investment bank, and further strengthening of shareholder power, but it was disappointing not to have more on the mutual and co-operative sector. It is interesting to note that, since 2008, co-operatives have increased their turnover by more than 21%. These are successful models in a new system of political economy that we should be thinking about today, but the Queen’s Speech fails to deliver that. In particular, it would have been nice to have a system that allowed entrepreneurs to sell their companies to employees, in order to embed that system of co-operatives and mutuals in our political economy.

We also need to do more on banking reform. Many hon. Members have pointed out that the access to funds is still appalling. Industrialists in the ceramic industry and elsewhere in my constituency continually complain about the poor access to funds. Last week, we were honoured to host Lord Digby Jones and Lord Green in Stoke-on-Trent. We talked about UK Trade & Investment, and the failure of our industries to break into new markets. We need to focus on UKTI, but we also need to look at procurement. The Government are not thinking smartly enough about their own procurement strategy, and about how it can drive industry and manufacturing.

The truth is that, for the past 10 years, the British economy has been unbalanced. There has been an overdependence on financial services and on the south-east. Our tax base was too narrow and, when the crisis came, it hit our public finances. We all need to own up to that. We need to work out how to shift that balance in order to rebalance the economy. That could involve capital allowances for manufacturing so that it can invest in energy-efficient technology, and moves to promote combined heat and power technology and to promote gas storage. All those elements would form an industrial strategy, but such a strategy is signally lacking in this Government.

Late last year, we heard plans for the energy intensive sector. We heard talk of £250 million to allow the sector to become more competitive, but that simply has not been followed up. Instead, we still have terrible regional disparities in economic growth, which are augmented by problems with lending. The truth is that the regional growth fund is not delivering the growth that we need. We in Stoke-on-Trent are grateful for those investments that have been made, but the money is not flowing through. We have seen the figures from the west midlands, which show an absence of money pouring in.

Finally, I want to make a small constituency plea to the Chief Secretary to the Treasury. A company called Body Temple in Stoke-on-Trent sells nutritional drinks. The Government are “simplifying” VAT on such products, but I do not think that they have thought that through. They do not understand that £3 billion market, and the role that the UK can play in it. I urge the Minister to think carefully about the consultation process on that measure, essentially on business competitiveness grounds.

Amendment of the Law

Tristram Hunt Excerpts

Monday 26th March 2012 Commons Chamber

[Mr Vaizey]

Is it not a wonderful coincidence that I also get to suck up to one of the most important Back Benchers in the House?

Next week, a BDO report will say that telecoms, media and technology industries will be the success stories of 2012 in the UK, with software investment growing and investment last year at an all-time high. Innovations such as cloud computing are set to create more than 200,000 jobs in the UK in the next three years.

[Tristram Hunt (Stoke-on-Trent Central) (Lab)]

Is it because the Department for Culture, Media and Sport is no longer interested in art and culture that it has purged Dame Liz Forgan from the Arts Council?

[Mr Vaizey]

That gives me a chance to respond to one of the Labour party’s most important Back Benchers. If he thinks that we are not interested in art and culture, why is he never out of my office talking about art and culture and, in particular, our joint campaign to save the Wedgwood collection?

To support technology and innovation businesses we have protected the science budget and are funding new science capital projects, including £158 million for e-infrastructure. The total increase in capital funding since December 2010 is £495 million. I feel that point keenly because tomorrow is the 10th anniversary of the agreement between the previous Labour Government and the Wellcome Trust to build and site the Diamond synchrotron in my constituency. I must say, in a moment of cross-party unanimity, that the last Labour Government had two of the finest science Ministers we have seen in Lord Sainsbury of Turville and Lord Drayson. We have, of course, gone one better by appointing our own Minister for Universities and Science, who has two brains.

We will have increased the level of the small company research and development tax credit from 175% to 225% by April 2012. That is the largest programme of support for business innovation in the UK and will provide support of more than £1 billion a year. We have made it more attractive to invest in smaller high-risk companies by raising the tax relief available under the enterprise investment scheme. We have established 24 enterprise zones throughout England. We have introduced catapult centres, which will form a new elite national network to act as a bridge between academia and business. They will cover sectors such as high-value manufacturing, cell therapy and offshore renewable energy. The Technology Strategy Board is investing at least £200 million in the current spending review period to make that happen.

We need to build on that success and I am pleased to say that the Budget maintains the momentum. We are cutting taxes on patents through a 10% patent box corporation tax worth some £900 million, which will be introduced next year and phased in. We are extending enterprise zones to Scotland, Northern Ireland and Wales. We are investing £100 million, which will leverage a further £200 million, in new university research facilities. We are introducing transport systems and future cities catapult centres. In a country with the world’s second largest aerospace industry, we have announced an investment of £60 million in a new aerodynamics centre to encourage innovation in aerospace design and the commercialisation of new ideas. Those measures will ensure that our world-leading universities and innovative small businesses can come together with global companies to commercialise new technologies, ideas and inventions in a wide variety of sectors.

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[Mr Foster]

I will not give way because I want to make progress.

I was pleased with the comments of my hon. Friend the Minister because he was able to put at the heart of what the Government are doing some of the really important work of the Department for Culture, Media and Sport. He showed how the work being done there can help to deliver the growth in the economy that is really necessary, particularly in relation to the creative industries. As he said—and I am grateful to the deputy leader of the Labour party for agreeing—we have in this country some of the brightest and best people working in our creative industries. We need to give them as much support as we can. Even before the Budget, work had been done to try to achieve that, such as the establishment of the creative industries council, which is already making valuable recommendations on the skills and training needs of the sector.

[Tristram Hunt]

Is the right hon. Gentleman happy that as a result of the tuition fees introduced by his Government, we are seeing a massive collapse in the numbers studying modern languages, humanities and the creative industries?

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[Tristram Hunt (Stoke-on-Trent Central) (Lab)]

The preamble to the Budget was brilliantly set out by the Business Secretary, the right hon. Member for Twickenham (Vince Cable), when he suggested that the Government have no “compelling vision” and no plans for a strategy for growth. Last week, in a remarkable sign of joined-up government, the Chancellor sought to lay out the absence of a compelling vision. We know from the growth projections set out by the Office for Budget Responsibility, which has an unfortunate habit of being optimistic, that this is the slowest economic recovery on record. In terms of recovering our pre-crash levels of output, it is slower even than the great depression of the 1930s.

We have heard much about the Budget being fiscally neutral, but I suggest that it is also a growth-neutral Budget, for we have a clear post-Budget forecast, also provided by the OBR. Its verdict is a paltry revision upward of 1%—[Hon. Members: “0.1%”] That is even worse—one tenth. The contrast with countries taking the challenge of recession seriously could not be starker. In America, employment and business confidence is up, with the economy growing at twice the rate of our own, thanks to the interventions of the Obama Government. We know that the Prime Minister likes to be tucked up tight on Air Force One, but I suggest that he should also ask for a bedtime story from the President on how to grow an economy out of recession.

Instead, we have the fiscal stimulus of a cut in the 50p top rate of tax, based on some dodgy assumptions about economic behaviour and incentives. While millionaires and dining companions of the Prime Minister will get a £40,000 tax cut—“Bosh”, as Mr Peter Cruddas might put it—hard-pressed families will be pushed into poverty. In Stoke-on-Trent there are 1,220 hard-working families who, in less than a fortnight, stand to lose all their working tax credit if they cannot extend their hours from 16 to 24, and that is before we get on to the raid on pensioners. Like the previous Labour Chancellor, I am not wedded to the 50p tax rate. Governments generally should not be in the business of taking half the earnings of their citizens, but now is not the time to make this cut. It is the wrong choice at the wrong moment.

The Budget also fails to help our manufacturing base. What manufacturers in my constituency need now is support for investment, capital allowances for energy-efficient technologies and support for co-fund technology demonstrators. We are still waiting for details from the autumn statement on the package of measures for energy-intensive industries. We must ensure that our leading manufacturers, such as ceramics firms in my constituency, are not driven out of the UK.

I have a few last points. First, I welcome the decision on place-of-consumption reforms for internet gambling. This is big news for Stoke-on-Trent and we are happy to host Bet365.com, which pays its taxes in the UK rather than going offshore. However, there is no need for this reform to wait until December 2014; it should come in earlier. On the negative side, the decision to remove the zero rate of VAT on approved alterations to listed buildings is a real error. When that is combined with forthcoming planning reforms, it speaks of a Government with little feel for the natural and historic environment of this country. What we needed was a pro-growth plan, not a growth-neutral Budget, and the Government failed to deliver it.

Arch Cru Compensation Scheme

Tristram Hunt Excerpts

Wednesday 19th October 2011 Westminster Hall

[Tristram Hunt (Stoke-on-Trent Central) (Lab)]

It is great privilege to serve under your chairmanship, Mr Owen, and to follow the hon. Member for Vale of Glamorgan (Alun Cairns) who, along with my hon. Friend the Member for Rutherglen and Hamilton West (Tom Greatrex), has pursued this matter with such dedication.

I rise to speak on behalf of my constituents who have been affected by this debacle, including Michael Sharkey, Ian Matthews and Donald Tart. They have invested not hundreds and thousands of pounds but smaller amounts, which are highly significant for their future standard of living. There is widespread concern, nay fury, among my constituents that they are seeing only up to 70% of the returns in this so-called £54 million funding package. In many circumstances, they face the loss of more than 40% of their investments. As we have heard, we are discussing people’s lives and money that people had worked hard for and put away for retirement or hoped to pass on to their children or grandchildren.

Of course, we will not know the full scale of the negligence involved and the real losses until all the remaining assets of the fund are eventually sold. However, private advice has conservatively estimated the losses in my constituency alone at around £1.5 million, which is a sizeable amount of money for my constituents, or to put it another way that is around 1.5% of the value of the contract recently awarded to Capita to run the national pension scheme. As the authorised corporate director for the Arch Cru investment fund, and therefore having the regulatory responsibility that we have heard so much about today, the Government might think about stepping back from giving Capita further powers and authorities. We have heard about the extraordinary negligence and even allegations of criminal activity involved in the running of these funds.

In June, I tabled 19 parliamentary questions to find out just how much business this Government have awarded to Capita. As of 3 August 2011, the Government had awarded 447 contracts worth at least £112 million to Capita. The hon. Member for Worthing West (Sir Peter Bottomley) has suggested that the Government have a role to play in bringing people to the table. I suggest that if someone is awarding £112 million-worth of contracts, they have a powerful role to play in bringing people to the table.

[Jonathan Evans]

Has the hon. Gentleman done the research to help hon. Members understand how many contracts Capita received before 2010, under the previous Administration? My guess is that it would be a significant multiple of the figure that he has just given.

[Tristram Hunt]

I was going to say that I thank the hon. Gentleman for his intervention, but he seemed to be making an unnecessarily partisan point when we are trying to work together for the good of our constituents. I will simply let it pass in that manner.

That figure of £112 million does not include contracts from the Department of Energy and Climate Change, contracts from the Ministry of Defence, which would only provide ranged values of contracts up to a total of £20.6 million and contracts awarded by the Department of Business, Innovation and Skills, which simply did not answer my question. I hope that the Minister will seek out the truth himself.

[Sir Peter Bottomley]

Does the hon. Gentleman agree that one important aspect is what attitude the Government take? The second important point is that Capita and its shareholders ought to make a clear assessment of the reputational risk of Capita handling something where things clearly went wrong and of its failure to spot what was going wrong.

[Tristram Hunt]

The hon. Gentleman is absolutely right that what we are seeing this morning is the decimation of the reputation of Capita. That decimation will only grow unless Capita steps up to the plate, works with the Government and accepts that it is in its own long-term interest, as well as its moral obligation, to ensure that those who invested in this fund on the basis of Capita’s reputation see their payments returned.

I will not go through all the intricacies of my investigation into the awarding of contracts to Capita. Suffice to say that the Government have a whip hand on this issue and should be thinking about using it.

The point is that with financial products and investment opportunities becoming ever more complex, it is vital that investors have confidence in the regulatory framework that upholds their investment. It has been said that

“A badly designed product or a product that is widely mis-sold can have a negative effect on consumer outcomes and actually, over the long term, a negative effect on the industry. It doesn’t just affect the particular product or firm involved. It also erodes people’s confidence in financial services.”

As the Minister will know, those are not my words but his words.

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

The hon. Gentleman is making a crucial point about confidence. Although it is important that people have confidence in the independent financial adviser that they go to, and that they have confidence in whatever companies are operating under the different structures, surely the supreme amount of confidence must be placed in the regulatory authority that has to oversee all those things. That is the crucial point that the Minister must respond to.

[Tristram Hunt]

The hon. Gentleman is absolutely right. What we have seen with the Financial Services Authority is a lack of confidence in its capacity to deal with this inquiry and the regulation of it. That is why I join my hon. Friend the Member for Rutherglen and Hamilton West in urging the Minister to take advantage of section 14 of the Financial Services and Markets Act 2000 to launch an inquiry, because the FSA has been silent on this matter for too long and as a result investors have little confidence in it. The FSA is part of the regulatory framework that initially failed our constituents.

I will wrap up now as I know that other hon. Members want to speak. I agree with my hon. Friend the Member for Rutherglen and Hamilton West that we are only at the beginning of this process. As I have said, we need the sort of inquiry allowed under section 14 of the 2000 Act. We also need a proper compensation deal and package, and I am struck by the 1996 Investment Management Regulatory Organisation model as a way of moving forward.

However, the Government have a role in this process. They are pouring money down the neck of Capita and for the Government to say that this issue is nothing to do with them strikes me and my constituents as remarkably detached and arrogant. Actually, the Government have a role to play in bringing people to the table, making Capita see sense and delivering justice for our constituents.

[Albert Owen (in the Chair)]

Before I call Guy Opperman, I remind Members that I will call the Front-Bench spokesmen from 10.45 am onwards. If Members wish to catch my eye and speak, will they stand up when I call Guy Opperman?

--- Later in debate ---

[Guy Opperman]

I endorse those comments. Capita will need to look over its shoulder after today’s debate.

[Tristram Hunt]

Does the hon. Gentleman not think, then, that the Government have a role to play in relation to the extraordinary award of contracts to Capita?

[Guy Opperman]

I accept that they have a role to a degree. The hon. Gentleman is being a little naive, because the provision of certain services by a perfectly reputable part of the company is satisfactory, and he is far too intelligent not to know that. However, we must deal with individual mismanagement by parts of the company, which happened in years gone by, and the hon. Gentleman knows that companies have obligations in relation to such matters. The matter can be pursued either as a civil obligation in the High Court or by way of criminal compensation arising out of a prosecution. Alternatively, it can be dealt with under section 14 of the Financial Services Act 2010. However, it is over-simplistic to say that just because the Government provide contracts to an organisation that is performing perfectly satisfactorily in some respects, they cannot be involved in seeking other compensation.

This debate is an opportunity for the Government to give a lead on what they will do, and they need to answer some questions. I want to discuss examples involving a couple of my constituents. The point has been fairly made that the losses have been suffered by people who are not wealthy. We are not standing up for toffs and fat cats, but for people who have lost £1,000, £2,000, £5,000, £10,000 or £15,000— people who have lost their life savings, and who were encouraged to put their money in.