(8 years, 5 months ago)
Commons ChamberRead Hansard Text Read Debate Ministerial Extracts
Nicola Blackwood (Oxford West and Abingdon) (Con)
1. What assessment he has made of recent trends in apprenticeship starts.
Luke Hall (Thornbury and Yate) (Con)
4. What assessment he has made of recent trends in apprenticeship starts.
Michael Tomlinson (Mid Dorset and North Poole) (Con)
14. What assessment he has made of recent trends in apprenticeship starts.
The Secretary of State for Business, Innovation and Skills and President of the Board of Trade (Sajid Javid)
More than 2.4 million apprenticeship starts have been delivered in England since May 2010, but we are now going even further. We are committed to 3 million more over the course of this Parliament and we will ensure that they deliver the skills that employers and the economy need for continued growth.
Nicola Blackwood
We need to fill 1 million more digital jobs by 2020, not to mention finding 1 million more technicians and engineers. In that context, I am sure that the Secretary of State would agree wholeheartedly with the Science and Technology Committee’s first report, published yesterday, which states that cuts to science and innovation spending are a false economy. That spending is an investment, not a state subsidy, and it creates jobs, increases productivity and attracts inward investment. It is essential for science, technology, maths and engineering—STEM—apprentices seeking innovative British employers.
Sajid Javid
I commend my hon. Friend for her leadership of the Science and Technology Committee. She is absolutely right to talk about the importance of science, innovation and digital skills. She will know that I made a speech yesterday to Innovate UK’s annual conference, in which I set out new plans to boost science and innovation capabilities.
Sajid Javid
I am delighted to congratulate those who have started their apprenticeships in my hon. Friend’s constituency. There has been a 45% increase in apprenticeships since 2010, and we have ensured that they are high-quality paid jobs that last at least 12 months. The whole House should acknowledge the incredible work that has been done by the Minister for Skills, my hon. Friend the Member for Grantham and Stamford (Nick Boles) on apprenticeships. He has focused not only on quality but on quantity.
Michael Tomlinson
Cobham, a company in Wimborne in my constituency, takes on between 12 and 18 new apprentices each year, and there have been just under 700 new apprenticeship starts in my constituency in the past 12 months. Businesses are responding to the call for new apprenticeships, but may I urge the Secretary of State to ensure that these apprenticeships really are worth while and high-skilled, so that those who undertake them will really benefit from them?
Sajid Javid
I am delighted to say that my hon. Friend’s constituency has had a 37% increase in apprenticeship starts since 2010. I know that he is very passionate about this, and that he has done much to promote apprenticeships. He is absolutely right to talk about the quality. Higher and degree apprenticeships are widening access to professions, giving young people new, well-respected routes to professional education at some of our best universities.
Mr Iain Wright (Hartlepool) (Lab)
The Secretary of State talks a good game, but the fact is that apprenticeship starts have dropped in every single year since 2011-12. The ambition for 3 million new apprenticeship starts is commendable, but would he concede that, in the light of the uncertainty surrounding key policy aspects such as the apprenticeship levy, he is going to struggle to hit that target?
Sajid Javid
First, I must point out that there were more than 492,000 apprenticeship starts in 2014-15, which was up 50,000 on the previous year. The hon. Gentleman mentioned the apprenticeship levy, and I know that he and his Select Committee have done some work on this. I hope that he will acknowledge that that will be a way of ensuring proper funding for apprenticeships, not just for the quality but for the quantity too.
Caroline Flint (Don Valley) (Lab)
In Doncaster, we were absolutely delighted to secure one of the two sites for the national college for high speed rail, but the Government seem to be a bit lukewarm about that now. We want to get on with developing and expanding apprenticeship opportunities in the rail industry, so will the Secretary of State confirm that he still fully backs the site in Doncaster for the college?
Sajid Javid
I am happy to reassure the right hon. Lady that we are committed to the college. It is right that it should be in Doncaster, and it will make a big difference to skills in an important area for our future infrastructure.
Jenny Chapman (Darlington) (Lab)
What impact does the Secretary of State think cutting the funding for further education colleges by 40% might have on the availability and quality of apprenticeships?
Sajid Javid
I speak as someone who went to an FE college, and no one needs to tell me about their huge importance up and down the country. My priority is to make them stronger, and one way we are going to do that is through local area reviews, which will look at local need.
Chi Onwurah (Newcastle upon Tyne Central) (Lab)
The video gaming industry contributes more than £3 billion to our economy and supports skilled jobs across the country, including in my constituency. Representatives of the industry tell me that the biggest barrier to growth is a lack of skills, yet there are no employee-led level 4 higher apprenticeships in video gaming, and the NextGen Skills Academy, which was working with employers to develop such an apprenticeship, is said to have lost its funding. We cannot allow the Government’s lack of a digital skills strategy to make it “game over” for Britain, so will the Secretary of State give me a guarantee now that the video gaming industry will get the apprenticeship standard that it needs? Yes or no?
Sajid Javid
The hon. Lady should be reassured, first, by the fact that I have met representatives of the video gaming industry on a number of occasions to discuss several issues, including skills. She will know that it is important that apprenticeships are employer-led, and it is up to any industry to come forward with proposals. We are already working with more than 1,000 employers on more than 140 apprenticeship programmes that they are helping to set up, and we will work with the video gaming industry, too.
Henry Smith (Crawley) (Con)
2. What steps he is taking to support the aerospace industry.
Andrew Stephenson (Pendle) (Con)
16. What steps he is taking to support the aerospace industry.
The Secretary of State for Business, Innovation and Skills and President of the Board of Trade (Sajid Javid)
The Government are working with industry, through the Aerospace Growth Partnership, to remove the barriers to growth, to boost exports and to grow high-value jobs. As part of that work, we are supporting the industry’s investment in technology, competitiveness, productivity, and skills.
Henry Smith
I am grateful to my right hon. Friend for that answer. Will he join me in congratulating Boeing, which has a significant base in my constituency, on more than doubling its workforce since 2010 and on increasing investment in UK suppliers from £1 billion to £1.4 billion over that period?
Sajid Javid
I certainly will. Crawley is an important area for aerospace: Jeppesen-Boeing has a fantastic flight training and service facility, which includes the largest number of Boeing Dreamliner simulators in the world; and of course the area is also home to Thales and London Gatwick airport. I commend my hon. Friend on the work he has done to promote this industry.
Andrew Stephenson
The last financial quarter saw the highest ever number of aircraft deliveries—it was up 5% on last year’s figure and up 34% on 2010’s. Many aerospace companies across Pendle credit the Government’s Aerospace Growth Partnership as having played a key role in that success, so will the Secretary of State confirm that he will continue to support that valuable partnership?
Sajid Javid
Yes. I see regular dialogue with the sector councils, such as the Aerospace Growth Partnership, as a vital part of our industrial approach. It is important that the UK continues to become more productive and more competitive, and that has been central to the work of the Aerospace Growth Partnership. I will be meeting many of that industry’s representatives on 3 December in Filton.
Ian C. Lucas (Wrexham) (Lab)
Further to that question, will the Secretary of State confirm today that the UK Government will continue to fund the Aerospace Growth Partnership through their £1 billion contribution over seven years from 2013 and that he is not considering in any way diluting the funding available for the Aerospace Growth Partnership, particularly by converting it into loans?
Sajid Javid
The Government are absolutely committed to having a strong aerospace sector, and that strength is represented in our commitment to the Aerospace Technology Institute, which is what I believe the hon. Gentleman was referring to.
Liz Saville Roberts (Dwyfor Meirionnydd) (PC)
Discussions move ahead on the UK’s first space port. Does the Minister agree that safety, especially that of the general public, is of primary importance in considering the location of such a space port? Do not a coastal location and extensive airspace unhampered by commercial flying, such as are available at Llanbedr in my constituency, make a crucial contribution to any safety assessment?
Sajid Javid
The hon. Lady is absolutely right to say that safety is paramount in that sector. We have consulted on a location and we will be talking to our colleagues in the Department for Transport on the outcome.
Mr Laurence Robertson (Tewkesbury) (Con)
As the Secretary of State is aware, I have world-leading aerospace companies in my constituency, and they are appreciative of the help the Government are giving to the sector. The biggest problem they still face is the inability to recruit a sufficient number of young people who are considering engineering as a career. What discussions is he having with the Education Secretary about persuading teachers to enlighten pupils as to the opportunities that exist in the sector?
Sajid Javid
My hon. Friend makes an important point. Skills in engineering, not just for this sector, but for many others, are hugely important. With my right hon. Friend the Education Secretary, we are working closely to get more employers into schools to talk to schoolchildren about their prospects and the huge opportunities that exist in that industry. There is always more that we can do, and he is absolutely right to raise this issue.
Yvonne Fovargue (Makerfield) (Lab)
Last week, Paul Everitt, the head of the aerospace trade body, ADS, said:
“Loans for research and development are not appropriate and that kind of approach would put the UK at a disadvantage.”
May I press the Secretary of State to answer the question of my hon. Friend the Member for Wrexham (Ian C. Lucas) and rule out replacing research grants with loans that will damage Britain’s ability to innovate and compete?
Sajid Javid
I made a speech yesterday at the annual conference of Innovate UK in which I talked about the many ways to help the sectors. Grants, exports and skills are just some of them. One thing this Government will not shy away from is supporting that sector, and supporting innovation.
John Stevenson (Carlisle) (Con)
3. What steps he is taking to support the manufacturing sector.
The Secretary of State for Business, Innovation and Skills and President of the Board of Trade (Sajid Javid)
The best way the Government can support manufacturers is by sticking to their long-term economic plan. That includes cutting red tape by a further £10 billion, creating 3 million apprenticeships, lowering corporation tax and devolving budgets and powers to local leaders.
John Stevenson
My constituency of Carlisle in north Cumbria has a strong and healthy manufacturing sector. I helped to promote the industry locally by organising a skills fair, which the Minister for Skills will hopefully attend next year. However, what assistance can the Government give to Cumbria to attract skilled workers not just from Cumbria, but from other areas to help complete large infrastructure projects such as the nuclear new build at Moorside?
Sajid Javid
I commend my hon. Friend on his annual skills fair, which I know is already making a big difference to his constituents. He will be pleased to learn that the advanced manufacturing centre at Carlisle college will begin construction in 2016-17 with growth deal funding. There is no doubt that that will help to boost local skills.
Mr George Howarth (Knowsley) (Lab)
Does the Secretary of State accept that although it is important that employers have a leading role in the development of skills, it is also necessary that skills are transferable? Unless the FE sector is involved in the process of training people and giving them those skills, those skills will not necessarily be transferable.
Sajid Javid
I agree about the importance of transferable skills. Our local area review of the FE sector up and down the country will look very closely at local needs, and at ensuring that skills are transferable.
Tom Pursglove (Corby) (Con)
What steps is my right hon. Friend taking to protect British manufacturing from dumping on our market and maximising the effect of existing international rules?
Sajid Javid
My hon. Friend knows that, when it comes to trade measures, action has to be taken by the European Union. I know that he has a particular interest in steel, and this is a hugely important issue about dealing with unfair trade. We discussed that at the emergency Council that I attended yesterday in Brussels. One thing that was agreed in the presidency conclusions was that the Commission should prioritise certain cases, and that certainly includes the steel industry.
Alan Brown (Kilmarnock and Loudoun) (SNP)
Last week in my constituency, the Mahle Group announced the loss of up to 200 highly skilled jobs in the manufacturing sector. The Scottish Government, devolved agencies and local authorities are already involved, but this is a classic example of a European-wide company shipping the process and jobs to another plant in the EU. What support can the UK Government provide, and what can they do both to stop such moves in the future and to encourage long-term investment in technology here?
Sajid Javid
We can continue to make the UK as attractive as possible for manufacturers. What we have seen in the past five years is that output is up for the manufacturing sector, exports are up and jobs are up, and that is because of our long-term economic plan, which is bringing in tax cuts, investing in skills, cutting red tape and boosting exports.
Mike Wood (Dudley South) (Con)
Will the Secretary of State bring forward details of the package of support that will be put in place to help those workers in the black country affected by the collapse of Caparo, including 54 in my constituency, so that the skills can be retained within the black country engineering sector?
Sajid Javid
My hon. Friend is right to raise the issue. It is hugely important that workers who are affected by the crisis in the steel industry get whatever help can be provided. We have rolled out plans for support across the country, and we are talking to local leaders to see what more we can do.
Ms Angela Eagle (Wallasey) (Lab)
The official Opposition have had to drag the Government, kicking and screaming, to the House time after time to get them to stand up for British steelmaking. It is now almost two weeks since the Business Secretary finally went to Brussels to hurry along the European Commission on state aid approval, and yesterday he attended the EU Competitive Council. Although there were welcome pledges for the future, no action was agreed that will make a material difference to our steel industry now. How long must the industry continue to wait for the compensation package promised by the Prime Minister in 2011 to be paid in full? When will the Business Secretary get a grip, stop hiding behind the EU and do more to tackle the root causes of this crisis?
Sajid Javid
It is a shame that the hon. Lady has to take that attitude. It would be better if she were a lot more constructive on this issue. I could point out that under 13 years of Labour we saw a 45% collapse in steel production and jobs halved—cut by more than 10,000—because of her Government’s policies. This Government are taking the issue seriously. This Government called for, and were granted, an emergency Council meeting at which we agreed on a number of actions. They will be published today and there will be further information in my written statement, which the hon. Lady can read.
Louise Haigh (Sheffield, Heeley) (Lab)
5. What progress he has made on introducing a market rent only option for pub tenants.
The Minister for Small Business, Industry and Enterprise (Anna Soubry)
The Government published a consultation on the introduction of the market rent only option on 29 October. Our proposals have been drafted to strike a fair balance between pub companies and tenants, and we look forward to hearing views from across the industry during the consultation period.
Louise Haigh
The draft pubs code released by the Minister in late October was supposed to signal the end of the unfair practice of forcing tied tenants to buy their beer only from pubcos. In fact, the code seems to give tenants the freedom to buy on the open market only in exceptional circumstances. Does the Minister agree that the code will mean in practice that very few tenants will be free from the pubco profiteers?
Anna Soubry
No, I am afraid that I do not agree with the hon. Lady’s assessment of the consultation at all. The clue is in the name: this is a consultation. We are therefore, quite rightly, publishing our proposals, and I look forward to representations from everybody, including the hon. Lady.
Michael Fabricant (Lichfield) (Con)
I join the hon. Member for Sheffield, Heeley (Louise Haigh) and say that a number of pubs have closed in my constituency and those of my colleagues simply because property prices and rents are too high? I recognise that we need to keep the pubcos in business too, or we will not help anyone. Does my hon. Friend agree that exceptional circumstances would include any situation in which a pub would have to close because the rent was too high?
Anna Soubry
This is all very useful and helpful, and I thank my hon. Friend for his contribution. I look forward to him putting his views into the consultation; a mix of views is critical to what I emphasise again is a consultation.
Greg Mulholland (Leeds North West) (LD)
Tenants’ groups and the Fair Deal for Your Local campaign have contacted me to say that they believe that the Department for Business, Innovation and Skills has acted in bad faith, and that the draft code of practice for pubs does not even abide by the legislation and entirely negates the market rent only option. They will be asking the Minister tomorrow to withdraw the code, which is entirely unacceptable, and engage with them to come up with something that accords with the will of the House as it was expressed last November.
Anna Soubry
I am very disappointed to hear all that. Let me make it clear that I have stood up against planned closures of public houses in my constituency and railed against companies such as Greene King. [Interruption.] Yes, I have, and I have fought for other pubs. Hon. Members can look on my website for details. That is not the point. It is really important that we strike the right balance on this issue. I say to the hon. Gentleman that the parallel rent assessment provision, which I know he has not always been in favour of—I think he changed his mind at the last moment—is not in the code.
Anna Soubry
Shouting from a sedentary position does not help at all. The new style of politics has not quite reached the Liberal Democrat Benches. The noble Lords have made their concerns very clear to Baroness Neville-Rolfe, and as a result of my conversations with her, that particular proposal will go into the second part of the consultation.
Bill Esterson (Sefton Central) (Lab)
The Minister’s so-called consultation scrapped the promised parallel rent assessment, so I am pleased to hear that she has put that back in. Will she do the same with all the provisions that were offered by Baroness Neville-Rolfe in the other House on 28 January and make sure that the vast majority of pub tenants are offered a fair deal when it comes to the market rent-only option? If she does not, she will be acting in bad faith and she will have betrayed the trust of thousands of pub tenants up and down the country.
Anna Soubry
As I keep saying, it is a consultation so we will listen to everybody. It is important that we strike the balance fairly between both sides of the argument, and that we understand and accept that there has been a great deal of movement to the betterment of tenants over the past few years. We must recognise that. I know from my own constituency work that pub companies such as Punch and Greene King have hugely changed their views to the benefit of tenants, and that must be welcomed.
Neil Carmichael (Stroud) (Con)
6. What his priorities are for business in the Government’s negotiations for reform of the EU.
The Secretary of State for Business, Innovation and Skills and President of the Board of Trade (Sajid Javid)
We must empower businesses to compete more effectively by accelerating the integration of the single market, especially in the services, digital and energy sectors. We will do this by cutting red tape for business and pushing for more ambitious free trade agreements between the EU and the rest of the world.
Neil Carmichael
Does the Secretary of State agree that the best interests of business will be served by our being a member of a reformed and reforming European Union? That extends to our remaining in the single market. From my right hon. Friend’s vantage point as President of the Board of Trade, it is extraordinarily useful that the European Union can negotiate such good strong deals for us globally.
Sajid Javid
My hon. Friend is right to highlight the importance of the need for EU reform, but many businesses believe that the costs of membership currently outweigh the benefits. As the Prime Minister said, in order for us to get the best deal, we must have the referendum and let the British people decide.
Conor McGinn (St Helens North) (Lab)
Last week a group of senior business figures in the north-west said it was vital for jobs in our region that Britain stays in the European Union. Will the Government heed what they say and perhaps make it a priority in the negotiations that the £800 million of EU structural funds given to the north-West will continue?
Sajid Javid
The one thing that businesses agree on is the need for reform. They are united in that, whichever business group one speaks to. If we can get those reforms, which I am confident about—and the Prime Minister has talked more about them this morning—we will see an even bigger boost to jobs and opportunities in Britain.
Mr Peter Bone (Wellingborough) (Con)
Will the Secretary of State remind the House of the trade deficit that we have with the EU, and of the fact that the unreformed EU is clearly not working for British business?
Sajid Javid
My hon. Friend is right to remind us of the current deficit. That is why one of the reforms that we want is a deeper and broader single market which includes digital and professional services, which Britain is very good at, alongside manufacturing, so that we can do more trade.
Hannah Bardell (Livingston) (SNP)
Writing in The Telegraph, the Prime Minister’s potential successor as leader of the Tory party, the hon. Member for Uxbridge and South Ruislip (Boris Johnson), said that the Prime Minister was right
“to unsheathe a section of the blade that might soon be used to cut the rope and set Britain free”
from the EU. Has the Secretary of State made an assessment of the likely impact on Scottish business of Britain turning its back on its European trading partners, and does he think that is appropriate language from a man of such standing?
Sajid Javid
I agree that we need reform. All Members on the Government Benches agree on the need to fight for that reform, which means cutting red tape and creating a deeper single market, more ambitious free trade agreements and fairness between the euro-ins and outs. I hope the hon. Lady will join us in fighting for that reform.
Hannah Bardell
A poll of Scottish business last month found that 82% of small and medium-sized businesses support the UK remaining in the EU. I dare say that those businesses value their ability to export more than £12.9 billion-worth of goods and services throughout the EU, creating wealth and jobs at home. Have this Government not lost all control of an exit agenda that was started only to appease right-wing Eurosceptic Back Benchers and may very well result in Scotland being dragged into delusional imperial isolation against its will?
Sajid Javid
I welcome the hon. Lady to her new role, which I omitted to do earlier. She will know that one of the most important sectors in Scotland is the financial services industry, whether asset management or banking. That is one area where we could have deeper single market and do more trade with the rest of the European Union. If she supports that cause, then she will support our efforts to reform the EU.
Bob Blackman (Harrow East) (Con)
7. What estimate he has made of the number of students from India applying to study in the UK in each of the past three years.
The Minister for Universities and Science (Joseph Johnson)
While overall international student numbers are up year on year, there were 16,000 Indian students in 2015—a decline of 13% over the past three years. However, it is worth stressing that India remains our second largest such market.
Bob Blackman
The fact is that the numbers of students choosing to come here has declined by 53% in the past four years. There is clear concern that we need to do something about this so that Britain, rather than the United States or elsewhere, becomes the choice for Indians to study. What measures can my hon. Friend take on visas, changing times for study and the ability of students to work here?
Joseph Johnson
It is important that we clear up misperceptions in the Indian market about the openness of our offer. We are open to international students. There is no cap on the number of international students who can come and study here, or on the number who can come and stay here after they finish studying, provided that they get a graduate job. We want to make more Indian students feel welcome here, and that is what we will be doing during the visit of Prime Minister Modi later this week.
Fiona Mactaggart (Slough) (Lab)
The Minister says that we want to make more Indian students feel welcome here, but it is clear from the figures that they feel much more welcome in America, Canada and Australia—our competitor countries. Will this not have a substantial impact on Britain’s trade relations with India and other countries such as Pakistan where the figures have fallen, and what is he going to do about it?
Joseph Johnson
Overall international student numbers are up year on year. We have a competitive offer for international students. We have a world-class higher education sector, with 38 out of the world’s top 100 universities. It is not surprising that international students from all over the world want to come and study at our great universities.
Tristram Hunt (Stoke-on-Trent Central) (Lab)
I alert the House to my interest in the register. When is the Minister’s Department going to show some leadership and get the Home Office to take students out of the migration figures? This Government are undermining the global reach of our universities, and America, Canada and Australia are benefiting.
Joseph Johnson
We have a competitive offer, as underlined by the fact that international student numbers are up by 3% to 4% year on year. We work closely together to ensure that our international offer is competitive. It remains competitive and will continue to be so. There is no cap on the number of international students coming to this country and no limit to the number who can go on to work in graduate jobs with a sponsored employer.
Andrew Griffiths (Burton) (Con)
8. What assessment he has made of the effectiveness of steps taken by UK Trade & Investment to encourage British exports.
The Parliamentary Under-Secretary of State for Business, Innovation and Skills (George Freeman)
I am delighted to be able to report that UKTI has increased its effectiveness year on year since 2010. We have doubled the number of UK companies assisted on exports from 27,000 in 2010 to 55,000. This is working. We have secured an extra £60 billion in additional sales and a rise in exports of 9% for existing exporters and 46% for new exporters. I am also delighted that the life sciences are doing their bit. I recently signed a £2 billion trade deal with China, and there will be more announcements on Thursday with the Indian state visit.
Andrew Griffiths
Britain brews the best beer in the world, and I know that the Minister wants to get our brewers exporting, but sadly they tell me that the performance of UKTI to date shows that it could not organise a party in a brewery. Will he sit down with UKTI and do all he can to help medium and family-sized brewers export across the world?
George Freeman
May I pay tribute to my hon. Friend, who is a doughty champion for British beer and Burton brewers? He makes a very important point and I would be delighted to convene that meeting with UKTI. We need to roll out the barrel for British beer and I am delighted to say that my right hon. Friend the Secretary of State for Environment, Food and Rural Affairs and I have set out an ambitious food and agri-tech export plan, to ensure that the whole world experiences the benefits of British beer and food.
Ms Margaret Ritchie (South Down) (SDLP)
The Northern Ireland agri-food industry depends on exports. With the Secretary of State for Environment, Food and Rural Affairs in China this week, what further steps will the Department for Business, Innovation and Skills take in accessing new market opportunities for British and Northern Ireland exports?
George Freeman
The hon. Lady makes an important point. The Northern Ireland sector is a crucial part of the UK sector, and that is why we have set up the exports implementation taskforce. We are absolutely dealing with the points she has raised about Northern Ireland.
Daniel Kawczynski (Shrewsbury and Atcham) (Con)
22. My hon. Friend the Member for Burton (Andrew Griffiths) is absolutely right: small and medium-sized businesses are still not getting the traction they need from UKTI. Will the Minister do everything possible to help chambers of commerce to engage with one another so that we can hit our £1 trillion of exports?
George Freeman
My hon. Friend makes an important point. Lord Maude is overseeing an important review of the way in which UKTI works, to make sure that we are developing a sector focus and a strategic market focus around the world. We are maintaining momentum—and we will improve on it in the years ahead—in order to hit that ambitious target.
Kevin Brennan (Cardiff West) (Lab)
The deficit for which this Department is responsible is the trade deficit. The current account measures our ability to pay our way in the world and its deficit recently reached its highest point since the second world war. It is still at 3.6% of GDP. How on earth will refusing to have an industrial strategy help British exporters overcome the failure of this Government’s trade policy?
George Freeman
The hon. Gentleman has picked the wrong Minister to talk about industrial strategy, seeing as I lead one of our most successful ones on life sciences. The Secretary of State’s speech yesterday made very clear our commitment to innovation, and this Department, though our investment in science and innovation, is leading in building a long-term economic plan for the science, industries and innovation of tomorrow. The hon. Gentleman can cite trade balance figures all he likes, but the truth is that we are in a global economy and we cannot control the rate at which other economies grow around the world.
Matt Warman (Boston and Skegness) (Con)
9. What steps he is taking to prevent businesses exploiting migrant workers.
The Minister for Skills (Nick Boles)
We are creating a director of labour market enforcement. This will strengthen our ability to find and stop exploitative employers, such as the 41 businesses in my hon. Friend’s constituency who have had their gangmasters’ licences refused or revoked.
Matt Warman
As my hon. Friend knows, Lincolnshire produces some of the finest food in the country, but some of its workers are affected by the issues under discussion. Does he agree that it should be as much down to supermarkets and consumers to make sure that everyone knows that the food we eat is produced in humane conditions?
Nick Boles
I absolutely agree with my hon. Friend. It is very important that supermarkets and other traders are as transparent as possible about the work they have done to ensure that nowhere in their supply chain is there any kind of slavery or other kind of labour exploitation. The Modern Slavery Act 2015 specifically requires them to make a statement of that kind.
Tim Loughton (East Worthing and Shoreham) (Con)
10. What assessment he has made of the adequacy of further education provision and funding in Sussex.
The Minister for Skills (Nick Boles)
An area review—the Sussex coast review of post-16 education and training—is taking place and it will recommend high-quality, sustainable and financially viable further education and sixth-form colleges through a reformed structure.
Tim Loughton
Two FE colleges in my constituency—Worthing college and Northbrook college—are part of that review. They are good and improving colleges, providing valuable apprenticeships, training and education. They have already taken large cuts—there is much uneconomic provision—so can the Minister assure me that the area reviews are not just a cover for further, unrealistic cuts that will threaten their viability altogether? Why are sixth forms in schools not included in those reviews?
Nick Boles
I am glad to have an opportunity to reassure my hon. Friend. Regional school commissioners are absolutely required to be part of the area reviews. Those in some parts of the country have perhaps been surprised by that requirement, so I am happy to reassert it: they are employed by the Department for Education and are required to be part of those area reviews. The point of area reviews is to have strong, sustainable FE and sixth-form colleges that can take advantage of growing revenue streams such as the funding for apprenticeships.
Peter Aldous (Waveney) (Con)
11. What proportion of businesses in England employ an apprentice.
The Minister for Skills (Nick Boles)
I am sorry to detain you yet further, Mr Speaker.
Data from the 2014 UK Commission for Employment and Skills employer perspectives survey showed that, in England, about 15% of establishments have offered formal apprenticeships. When we introduce the apprenticeship levy in 2017, we expect that percentage to increase significantly.
Mr Speaker
Quite why the Minister supposes that I find it anything other than joyous to sample his mellifluous tones I frankly cannot fathom. I am not being detained by anybody; my duty is to be in the Chamber, and I shall always be here.
Peter Aldous
The Apprenticeships Suffolk Business Service has been formed by the chamber of commerce and the county council, and it is already delivering many more apprenticeships. Will my hon. Friend do all he can to ensure that businesses themselves play the major role in increasing the number and quality of apprenticeships?
Nick Boles
I am really delighted that Suffolk authorities and the chamber of commerce have created that service. A number of authorities around the country have created similar things—apprenticeship hubs and the like—and such interventions by local authorities are incredibly worth while. My hon. Friend is absolutely right that, ultimately, we want employers to take control of this: we want employers to develop standards, as the hon. Member for Newcastle upon Tyne Central (Chi Onwurah) mentioned earlier, to control the funding and to ensure that more people get the opportunity of an apprenticeship.
Rob Marris (Wolverhampton South West) (Lab)
Can the Minister tell me three specific things that the Government are doing to encourage apprenticeships in construction, where there is a huge shortage?
Nick Boles
I am absolutely delighted to be able to tell the hon. Gentleman three specific things. First, we are introducing an apprenticeship levy. I would have thought that he might have taken the time to welcome it, because it will require larger employers to make a substantial investment in apprenticeships. Secondly, we have reformed the Construction Leadership Council under new leadership and charged it with taking a very active role in promoting apprenticeships in the sector. Thirdly, I regularly meet the new, very focused leadership team of the Construction Industry Training Board, and I have charged it with focusing on apprenticeships as the key method of delivering high-quality training and further skills.
Chris Heaton-Harris (Daventry) (Con)
12. What steps he is taking to address the shortage of drivers in the road haulage industry.
The Minister for Skills (Nick Boles)
Mr Speaker, you can see why I was a little bit nervous about popping up again.
We are working closely with a group of leading sector employers to support the development of a new apprenticeship standard for heavy goods vehicle drivers. The standard will equip apprentices with the driving skills the road haulage industry needs.
Chris Heaton-Harris
Could my hon. Friend name five—no, I will not go there.
Will my hon. Friend work with employers in the road haulage industry to try to incentivise driving as a career choice for young people?
Nick Boles
Yes, I absolutely will. There is a desperate need for more skilled drivers. It is actually a great opportunity for people who are in relatively low-skilled employment. We had a very interesting discussion in the Social Justice Cabinet Committee recently about this being an opportunity, as a very good kind of first employment, for ex-offenders. A Defence Minister has mentioned that it is a great opportunity for people leaving the forces. We need to do more on all sides in the Government.
David Simpson (Upper Bann) (DUP)
What more can the Government do to help haulage companies with the exorbitant fees of £3,500 that are charged to train for HGV licences?
Nick Boles
There is a convention, which we have stuck to for very good reasons, that we do not ask the taxpayer to pay for licences to practise a particular profession. We believe that doing so should be directly in the interests of both the employer and the employee who will benefit from having the licence. However, we are encouraging those companies to develop, and they are working on developing, an apprenticeship standard to include the whole of the rest of the training, which will of course receive substantial support from the taxpayer and from the apprenticeship levy.
Mr Geoffrey Robinson (Coventry North West) (Lab)
13. When he plans to bring forward proposals to improve access to finance for (a) the smallest businesses and (b) people who are self-employed.
The Minister for Small Business, Industry and Enterprise (Anna Soubry)
According to the latest SME Finance Monitor survey, net lending to smaller businesses has recovered substantially since 2014 and businesses are increasingly finding that banks are more willing to lend. In relation to Government assistance, we have provided finance help to small businesses—for example, through 32,800 start-up loans worth £176 million. Turning to the self-employed, Julie Deane, the founder of the Cambridge Satchel Company, is currently carrying out an independent review of self-employment, and I am sure we will welcome her recommendations. We of course need to do more to make sure that everybody knows about the brilliance of the financial tech sector.
Mr Robinson
I thank the Minister for that detailed answer. On small businesses, she will be aware that the Secretary of State visited the west midlands last Friday, accompanied by the Coventry and Warwickshire growth hub. He visited a small company near his constituency, Ricor Ltd—a company that is indicative of why the Government should maintain their positive support for business. Will she assure me, and the business hubs that provide such a good link with those businesses, that that will be the case?
Anna Soubry
I understand from the Secretary of State that that is an excellent company. I agree that these things are really important. It is also incredibly important that we encourage small businesses to consider alternative sources of funding. That is why the FinTech sector is doing so well. We need to get out information about crowdfunding, peer-to-peer, angels and so on, especially at a local level.
Kevin Foster (Torbay) (Con)
The Minister will be aware that in my constituency, many people go into self-employment and start a small business as one of their first steps into employment. That means that they are unlikely to be familiar with the system. What steps will she take to ensure that people are aware of the options open to them, particularly once the review of self-employment funding finance is completed?
Anna Soubry
Of course, we offer people information. The British Business Bank puts together the various funds that are available to small businesses. One reason why I am in favour of the great devolution deals is that they take that sort of activity right down to the local level. The coming together of local authorities, businesses and local enterprise partnerships enables us to get this sort of information out. The Federation of Small Businesses and the chambers of commerce also have a huge role to play, because they do excellent work, often at a local level.
Julie Elliott (Sunderland Central) (Lab)
15. What recent discussions he has had with the Foreign Secretary on the effect on businesses of the UK’s membership of the EU.
The Secretary of State for Business, Innovation and Skills and President of the Board of Trade (Sajid Javid)
I work closely with the Foreign Secretary, particularly through the exports taskforce, which I chair, to deliver growth for British business. UK businesses send 45% of their exports to the EU and benefit from the single market. The reforms that we are pursuing are good for the EU, good for the UK and good for British business.
Julie Elliott
Some 160,000 jobs in the north-east rely on trade with the EU. We are the only region in the country consistently to deliver a trade surplus. What assurances can the Secretary of State give my constituents, many of whom are understandably concerned about what an isolated Britain on the fringes of Europe might mean for their jobs and livelihoods? Will he vote to stay in the EU and stand up for British jobs?
Sajid Javid
The hon. Lady has some excellent manufacturers and other companies in her constituency, including Nissan, which recently announced a huge investment. What business wants in respect of the EU is more certainty and reform, so it welcomes the reforms that we are fighting for, and the certainty that the referendum will bring.
Mr David Nuttall (Bury North) (Con)
One of the biggest impacts on UK businesses comes from the EU social chapter. As recently as 2010, the Conservative manifesto said that we would “negotiate the return” of power over “employment legislation”. Is that still going to happen, or have we gone backwards in our ambition?
Sajid Javid
We have set out our priorities in respect of making the whole EU, not just Britain, more competitive. They include cutting red tape and having more free trade agreements. We have set out those priorities in detail. I listened carefully to what my hon. Friend had to say and will reflect on it.
Nigel Mills (Amber Valley) (Con)
T1. If he will make a statement on his departmental responsibilities.
The Secretary of State for Business, Innovation and Skills and President of the Board of Trade (Sajid Javid)
My first and foremost priority in recent weeks has been to do what I can to help the steel industry. I pushed for and was granted an emergency meeting of the Council of Ministers, which took place in Brussels yesterday and led to a number of actions being agreed. I reiterate our support for the people in Redcar, Scunthorpe, Lanarkshire and elsewhere who have lost their jobs recently. This is an extremely difficult time for all who are affected. I say to them: we are resolutely on your side.
Nigel Mills
Many businesses in the construction sector in my constituency are still suffering from excessive levels of retention being taken by prime contractors. What more can the Secretary of State do to encourage the phasing out of retention before the 2025 deadline?
Sajid Javid
My hon. Friend raises an important point that a number of people have made to me recently. Cash retention is a common practice that can provide insurance for customers against poor workmanship. However, the scope for misuse is clear. That is why the Government have commissioned a review of the practice. We will see what action we can take.
Mr Gordon Marsden (Blackpool South) (Lab)
Further education has already been weakened by five years of Government funding cuts, so why are Ministers having hasty, half-cocked area reviews that threaten forced course and college closures? Figures released by the Library today suggest that the Chancellor is demanding at least £1.6 billion in FE cuts, and a new Green Paper proposes free-for-all providers that would threaten colleges’ higher education teaching. Are Ministers doing anything to stop FE being the spending review’s whipping boy?
Sajid Javid
We have discussed this issue previously. As I have said, we want an even stronger FE sector that provides even more opportunities across the country, and local area reviews are essential for that. We need to understand local needs much more carefully, and local reviews will achieve that. We will then be able to offer more opportunities.
Chris Heaton-Harris (Daventry) (Con)
T3. Many English Members of the House, while unable to recall individual results in the tournament, were extremely proud that England hosted the rugby world cup this year. What does my right hon. Friend estimate is the positive economic impact of hosting the rugby world cup?
The Minister for Small Business, Industry and Enterprise (Anna Soubry)
Independent consultants—EY, the old Ernst & Young—estimated pre-tournament that the rugby world cup would attract more than 460,000 international visitors to England and Wales, which is the highest ever number for a world cup. That, apparently, would add up to £1 billion to the United Kingdom’s GDP, which is excellent, and we will know whether that figure was accurate sometime in May, when the impact statement has been done. By way of an anecdote, my hon. Friend the Member for Rugby (Mark Pawsey), who represents the birthplace of this great game, says that one business in his constituency reported a 250% increase in turnover, purely as a result of this great tournament.
Diana Johnson (Kingston upon Hull North) (Lab)
T2. Wyke sixth-form college in Hull does a vital job for young people in a city that has struggled with educational attainment, and the FE colleges and other post-16 provision in Hull are deemed to be either good or outstanding. Will the Minister guarantee that that vital provision in developing the skills agenda in the city will be protected, and not decimated by the cuts that his Government are likely to propose?
The Minister for Skills (Nick Boles)
We all share a sense of the importance of sixth-form and further education colleges to all our communities, and we all rely on and value those institutions. We need them to be stronger, however, and the area reviews are about enabling those institutions to form arrangements with each other that strengthen them for the future. This will be of less relevance for sixth-form colleges, but for further education colleges, the funding going into apprenticeship training is growing fast. Those colleges have a great opportunity to win a lot of that funding for the future.
Bob Blackman (Harrow East) (Con)
T4. I wish a happy Diwali to you, Mr Speaker, and to everyone celebrating it. Given Narendra Modi’s visit this week, will my right hon. Friend describe the various trade, educational and bilateral arrangements that will be announced, and say what Narendra Modi is looking forward to seeing during this visit?
Sajid Javid
I commend the work that my hon. Friend has done over many years to boost ties between India and Great Britain. A number of commercial announcements will be made during the visit of the Indian Prime Minister. Those will demonstrate the full breadth of the relationship between us and India, and will cover healthcare, energy, financial services and creative industries. That will help to boost both of our economies. Later next month, I will lead a trade mission to boost education exports alongside the Minister for Universities and Science.
Bridget Phillipson (Houghton and Sunderland South) (Lab)
T6. In his Green Paper, the Minister says that he wants to improve access to higher education for the most disadvantaged students. Will he match that rhetoric with action and protect the student opportunity fund, which does so much to support young people from across the country in realising their full potential?
The Minister for Universities and Science (Joseph Johnson)
Yes, indeed. In the Green Paper, we set out various proposals on which we want to consult with the sector. I have also announced the creation of a social mobility taskforce, which is to report back to me by Christmas with proposals on how to meet the Prime Minister’s ambitious target of doubling the proportion of people from disadvantaged backgrounds who attend university by 2020.
Marcus Fysh (Yeovil) (Con)
T7. The Government are making large infrastructure investments in my area, through projects such as the dualling of the A303 and Hinkley Point. I am trying to encourage large-scale inward investment. How can my hon. Friend help us to build on local skills and research and development?
Nick Boles
Through our growth deal with the Heart of the South West local enterprise partnership, we have invested £6.5 million in the Hinkley Point training agency. Yeovil college and its partners can bid for that funding to build capacity and deliver skills training for Hinkley Point. The LEP is leading work with partners, including Yeovil college, to develop an action plan to deliver the construction skills that the area will need.
Alex Cunningham (Stockton North) (Lab)
T9. The Minister appears to be a little shy about telling us exactly when the compensation scheme for energy-intensive industries such as steel is likely to be introduced, or whether it will be ahead of the original planned date. While she is thinking about that, will she also give thought to other industries, such as chemicals, ceramics, paper and cement, with a view to providing sufficient compensation for them? They face greater competition, uniquely, because of the high cost of additional UK Government energy and climate change electricity taxes.
Anna Soubry
At yesterday’s excellent meeting held by the Secretary of State in Brussels, the presidency agreed that this matter should be prioritised. We are now waiting for the European Union to sign off on it, and we are told that it will be in a matter of weeks. We are doing everything we can to advance that.
Rishi Sunak (Richmond (Yorks)) (Con)
T10. I welcome the Government’s ambition for 3 million apprenticeship starts in this Parliament—three times the number under the last Labour Administration. As the numbers rise, will the Minister ensure that those apprenticeships provide the high-quality skills that our young people deserve and our employers demand?
Nick Boles
Absolutely. There is no point having 3 million apprenticeships unless they are high quality and add to the skills of the people who take them up. That is why we are introducing new trailblazer standards, developed by employers: apprenticeships have to last at least a year and involve 20% formal off-the-job training. We are also introducing higher-level and degree apprenticeships.
Valerie Vaz (Walsall South) (Lab)
I was at Caparo Atlas Fastenings in my constituency talking to the administrators last Friday. I am sure that the whole House will send their condolences to the Paul family. Will the Minister say what specific steps can be taken to preserve those skilled jobs for the future, given that infrastructure projects are coming up in the west midlands?
Anna Soubry
Of course we always listen to what the local enterprise partnerships are asking us to do, if they need any additional support. As the hon. Lady knows, in relation to steelworkers who have unfortunately been made redundant—notably at Redcar, but with more fears for Scunthorpe and Rotherham—we have put in substantial amounts of public money, specifically to ensure that those highly skilled workers get all the opportunities they need to retrain. The amount for Redcar is £16.5 million, and for Scunthorpe it will start at £3 million. We have already started to work with Rotherham and, if we get more bad news, money will be available for that area.
Nigel Huddleston (Mid Worcestershire) (Con)
The issue of switching suppliers is particularly acute in the mobile phone space, where just 6% of users change contracts each year, and many people find it difficult to find the best deals. What plans do the Government have to improve switching and price transparency in the mobile sector?
Nick Boles
The Government are determined to encourage more consumers to vote with their feet in key markets such as energy, banking and mobile phones. We are currently conducting a call for evidence on a set of six switching principles that will make the process quicker and easier for consumers. My hon. Friend the Minister for Culture and the Digital Economy—for digital everything—and I will shortly write to the chief executives of mobile telephone companies to encourage them to co-operate fully with those new principles.
Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)
The Caparo group, which has its headquarters in my constituency and is currently in administration, provides high-quality steel products to the supply chains for both the motor industry and civil aviation. Those products are difficult to source from elsewhere. What will the Minister do to ensure that those companies survive?
Anna Soubry
May I first apologise, because I should have added my condolences to the Paul family on their loss yesterday?
The difficulties in Caparo are not as simple as those involved in the decline in the steel industry, with which we are all familiar. One of the difficulties at the Hartlepool plant, for example, was the decline in oil and gas. We will work with the LEPs—we will work with anyone—to make sure that workers who need extra skills to transfer into new jobs have that opportunity.
Jo Churchill (Bury St Edmunds) (Con)
What steps will the Minister take to promote reform of the EU regulations specifically on biotechnology and life science?
The Parliamentary Under-Secretary of State for Life Sciences (George Freeman)
My hon. Friend raises an excellent point. I was yesterday in Brussels with my right hon. Friend the Secretary of State to convene a summit with European leaders on biosciences. We are pushing for an enlightened regulatory framework to support EU and UK leadership in the fields of food, medicine and energy for global benefit.
John Pugh (Southport) (LD)
May I ask the Minister why his Department is keeping further education and skills out of the Liverpool city region deal? They are crucial to the Liverpool city region.
Nick Boles
I am not directly responsible for city deals, but there are many such deals around the country that have specifically majored on the inclusion of skills—Manchester and elsewhere. I am happy to look into it, but I am sure it was not because we resisted. Frankly, we are very keen for local authorities and local enterprise partnerships to take a bigger role.
Martin Vickers (Cleethorpes) (Con)
May I refer the Minister back to his earlier answer regarding the shortage of heavy goods vehicle drivers? Only last Saturday, my surgery was attended by someone who wanted to establish themselves as a trainer for HGV drivers. Will my hon. Friend look again at the support that such people receive, as it could go a long way to more drivers becoming available?
Nick Boles
When there is an apprenticeship standard for HGV drivers, the company in my hon. Friend’s constituency will be able to offer training to employers for that apprenticeship, and to secure the funding that the Government will provide through the apprenticeship levy and other public resources.
Mr David Lammy (Tottenham) (Lab)
I welcome the decision the Department has made on name-blind applications to university, but the Minister will know that this does little to deal with prejudices of class and race. Postcode, school and being first in the family to go to university are just as important. What progress is being made on contextual data?
Joseph Johnson
It is a priority for the Government to increase the proportion of disadvantaged people going to university. We have brought forward proposals for UCAS to look at, so that for the 2017 admission cycle, we can introduce name-blind applications—an important step to ensuring that application and admission to university is on the basis of merit.
Several hon. Members rose—
Mr Speaker
A dazzling array of eager beavers on both sides of the House. I call Mr Robert Jenrick.
Robert Jenrick (Newark) (Con)
For British businesses operating in highly regulated sectors such as the legal sector, India remains an incredibly restricted market to break into—in many respects, even more so than China. Will the Secretary of State use this week’s visit as a catalyst to move forward long-standing discussions on the service sector?
Sajid Javid
My hon. Friend is absolutely right to raise this issue. Britain and India do a lot of trade together, and there is a lot more we can do if we put our minds to it. These are exactly the kinds of issues we look forward to raising this week.
Anna Turley (Redcar) (Lab/Co-op)
As has been well documented in this House, Ministers promised £80 million for retraining and economic development in Redcar. We know now that only £30 million of that will be saved for pension payments. Less than £10 million has been paid out already, and more than 90% of people have received their payments. Will the Minister promise the people of Redcar that what is not spent on redundancies and final salaries will stay in the region and go to the people of Redcar, not be sucked back up to the Treasury?
Anna Soubry
I can absolutely assure the hon. Lady, who rightly fights very hard for her constituents, that only today I met again with my officials and said that I wanted the remaining money to go in tranches to Redcar, so that people there can determine how it will be spent for the benefit of her constituents.
Amanda Milling (Cannock Chase) (Con)
Will the Minister join me in congratulating Jack Hammond and Ashley Churchman, two inspiring apprentices who addressed a joint Education and Business, Innovation and Skills Committee seminar last week? Does he agree that apprentices sharing their experiences in this way can demonstrate to businesses the real value of employing apprentices?
Nick Boles
I certainly would like to congratulate my hon. Friend’s constituents. As she says, there are no better advocates for apprenticeships than those who have completed them—not a bunch of middle-aged people like us—who can go to their schools and preach the virtues of apprenticeships.
Stewart Malcolm McDonald (Glasgow South) (SNP)
In the Scottish Government’s programme earlier this year, the First Minister announced three new innovation centres for Scotland across Europe, one of which will be based here, in the great European capital city of London. How do the Government plan to support that centre, to ensure that Scottish businesses compete on the world stage?
Joseph Johnson
We continue to support innovation across the UK. I was pleased to be in Glasgow 10 days ago, laying the turf for a new innovation centre, the Imaging Centre of Excellence, in the University of Glasgow. Scotland punches above its weight with regard to research funding—it has an 11% share of it, whereas it has an 8% share of the population—and I hope it continues to do so.