(10 years, 10 months ago)
Commons ChamberI thank the Minister for advance sight of his statement. It is now twice in two days that he has come to the House to make a statement. Tomorrow he will make it a hat-trick with his final Cabinet Office Questions. Clearly, he wants to see as much of us all as possible before he retires from this House.
I pay tribute to the Minister for his work in the past five years as the Minister for the Cabinet Office and in the many years he has served the public as a Member of this House. There are many things on which we disagree, for example how we should use digital government to empower people rather than cutting them off from services, but no one can doubt his dedication to public service. Nor can we doubt the dedication of those who work so hard to protect us, our nation, its citizens and businesses from cyber-attacks. I, too, would like to put on record my praise for the work done by the security services, the police and all civil servants who work in this area. They do a vital job day in, day out to protect our cyber-infrastructure and digital footprints, and I commend their work.
I am sure the Minister agrees with that sentiment. I hope, therefore, that the Government will clarify how those who protect us in cyberspace will continue to do so when the Chancellor is bent on reducing public sector spending to levels not seen since the 1930s, before there was even an NHS or a GCHQ. It is clear from the Office for Budget Responsibility and the Institute for Fiscal Studies that, after the Chancellor’s Budget last week, unprotected Departments face huge cuts to meet his spending plans and unfunded tax cuts. The Ministry of Defence, the police and social care services are under threat. Can the Minister confirm whether the budget for cyber-security will be protected, or are we to assume that because the Cabinet Office is an unprotected Department that this will not be the case?
I welcome the new Cyber First pilot. Indeed, I was privileged to launch the UK’s first MBA in cyber-security with Coventry university. The demand for cyber-security experts is growing at 12 times the rate of the overall job market, so it is vital that we train and equip more people with cyber-skills. Small firms are the victims of three quarters of all successful data breaches and are the most likely to suffer from a lack of cyber-skills. However, just as the Minister came late to the digital inclusion agenda and then chose a strategy that excludes 10% of our fellow citizens, he has come late to—indeed, neglected—cyber-security for small businesses. According to the Institution of Engineering and Technology, half of all small and medium-sized enterprises have not even heard of the Government’s cyber-security efforts. What is the Minister doing to change that and to make small businesses more cyber-aware?
Crime is changing. It increasingly happens online, but the Government do not have a strategy to tackle it. The cyber-security budget is overwhelmingly going to cyber-security and big businesses, leaving consumers to fend for themselves. The majority of the cyber-security budget goes into the single intelligence account, with the police left a tiny amount to tackle a growing tide of online crime with an overall £2 billion cut in funding. The Home Affairs Committee highlighted the black hole where low-level e-crime is committed with impunity. What is the Minister doing to ensure that the police have the resources they need in this area?
I welcome the announcement of a new contractual framework for Gov.uk Verify. However, it was only in October that the Government were predicting that hundreds of thousands would be verified by now. In fact, only 50% of people are successful the first time they use the service. The Minister says that details will be announced “shortly”. Given that there are only a few days left before Parliament is dissolved, will he tell us exactly when he plans to announce the details? Specifically, will it include a public sector provider of identity assurance, so that people can choose a provider they trust?
Finally, the statement makes no mention whatever of mobile. It has taken the Government five years not to eradicate not spots, and they have ignored the gaping hole in cyber-security which is mobile device security, particularly in the era of “bring your own” device. What is the Minister doing specifically on mobile?
I could not help but notice that the statement was somewhat light on actual policy announcements. A cynic might think that the Minister was rushing out a half-baked announcement to use up time. It is almost as if the Government are scrambling around for something to say to give the impression that they have made real progress in rising to what is one of the greatest challenges of the digital era and one of the greatest opportunities for UK business. The UK can lead in cyber-security as we do in online commerce, but it will take skills for the many—small businesses and citizens, as well as big businesses—not the few. It will take a Labour Government to ensure we have that.
Mr Maude
I am extremely grateful to the hon. Lady for her very warm words at the beginning of her response, which I enormously appreciate. Parting is indeed such sweet sorrow, but there is life beyond.
I am afraid it tailed off a little bit after that. The hon. Lady talked about cuts and the potential for continued funding for cyber-security in the next Parliament. She made the slightly odd suggestion that the trajectory of public spending would be at a level last seen in the 1930s. A little further research shows that the last time this level of spending was seen was in 1999-2000 under a Labour Government.
So far as funding for cyber-security is concerned, that will be dealt with in the context of the spending review that will take place after the election, but I do not know anybody who believes there is any possibility that there will not continue to be very significant funding for cyber-security. We are acknowledged across the world as being in the lead in this area. There is always a danger when one says that of being thought to be complacent. We are not remotely complacent. This is a very fast-moving set of threats and we have to move equally fast to keep up with it. We need to be on the case all the time.
The hon. Lady talked about the resources being devoted to tackling cybercrime. The Under-Secretary of State for the Home Department, my hon. Friend the Member for Staffordshire Moorlands (Karen Bradley) who has responsibility for tackling cybercrime is in her place on the Front Bench. She takes this matter immensely seriously. The national cyber crime unit is based in the National Crime Agency. A good proportion of the cyber-security programme is funding for the law enforcement agencies, which do fantastic work. I obviously echo her enthusiastic support for those who work to protect and preserve our national security, and I include in that those in our armed forces active in this field.
The hon. Lady talked about digital inclusion, which she knows the Government take extremely seriously. We support the huge amount of work being done by businesses, particularly Barclays and other companies, on digital activity to enable people currently excluded to be active online, and that will continue to be the case. She also asked about mobile security on mobile devices, which is obviously a serious matter. So far as the Government are concerned, CESG, part of GCHQ, provides good guidance and is reckoned to be world leading on smart devices.
So far as citizens and consumers are concerned, she will be aware of our Cyber Streetwise campaign and Get Safe Online, which are about making sure people know the risks. GCHQ estimates that 80% of successful cyber-attacks could be thwarted or mitigated by basic internet hygiene, and for that awareness is important. I am less concerned about whether SMEs are aware of what the Government are doing; I am more concerned that they are aware of what they need to do, which is to take basic steps on internet hygiene.
There is much more to do, and there will never be any scope for a Government or businesses to rest on their laurels. I found the hon. Lady’s objection that my statement was light on policy slightly startling. Quite rightly, the Government have elevated cyber-security to one of the four tier 1 national security threats, so we take it enormously seriously. At a time when we had to cut public spending, because of the appalling public deficit inherited from the last Government, this was one of the very few areas that we decided was sufficiently important to invest further money in, and we will continue to do that.
(11 years ago)
Commons Chamber
Mr Maude
We have already saved a great deal of money and improved services for citizens, and we are beginning to roll out much better technology in government, so that civil servants are helped by the technology they have rather than hindered by it. There is much more to do. We inherited some extremely expensive, cumbersome and unwieldy IT contracts, and for one of them the Department had to pay £30,000 to change one word on a website. That is not acceptable; it is no way to treat taxpayers’ money; and it is going to change.
The Government Digital Service is a very talented group within the Cabinet Office and is internationally recognised, so it is unfortunate that the Minister has prevented the group from working with local government. On Monday, the Minister for Culture and the Digital Economy said that he agreed with me and Labour’s independent digital government review that this expertise should not be barred from working with local authorities. Will the Minister now concede that GDS should be allowed and encouraged to work more closely with councils, so that we have digital services that work for everyone—locally and nationally?
Mr Maude
The hon. Lady is completely right to flag up the huge scope for improvement in online services in local government. GDS’s focus has had to be on central Government, but in the document on efficiency and reform that we published at the time of the autumn statement, we flagged up that we expect this to be available across the wider public sector. The focus for the time being has to be on finishing the job in central Government, but helping to build an equivalent to support local government is a very high priority for us.
It is difficult to answer the Father of the House without a long, historical exegesis, but I would argue that, when it comes to Ukraine, it does matter on our continent of Europe that we do not reward aggression and brutality with appeasement; that would be wrong. That is why it is right to have the sanctions in place, right to keep the European Union and America together on the issue, and right to stand up to President Putin. On Greece, of course there is a British interest, which is that we want stability and growth on the continent of Europe. The eurozone crisis has held that growth and stability back; we want those concerned to come to a reasonable agreement so that Europe can move forward. It is good that the British economy is growing and jobs are being generated, but we have to recognise that our largest market at the moment is still relatively stagnant, and the situation in Greece does not help that.
Q12. There are adverts in Newcastle exhorting my constituents to report benefit fraudsters. May I ask the Prime Minister why he does not feel as strongly about tax avoidance? Will he report whether he had a conversation with Lord Green about tax avoidance?
I do feel strongly about tax evasion and aggressive tax avoidance. Let me tell you, when it comes to income tax, some of the things people used to get away with. Under Labour, people avoided paying tax by calling their salary from their company a loan: allowed under Labour, banned under the Tories. Businesses could avoid paying tax by paying employees through trusts: allowed by Labour, banned by the Tories. Time and time again, it is this Government who have come along and cracked down on tax evasion.
(11 years, 1 month ago)
Commons Chamber
Mr Maude
Britain already has a high level of digital inclusion, and it is rising, but we are determined to go further and get more people online. We are working closely with almost 70 organisations from the private and voluntary sectors that are signed up to our digital inclusion charter. I have no details of exactly what is going on in my hon. Friend’s constituency, but I would happily share them with him.
Digitising public services creates vast amounts of data that can be used further to improve services and accountability, transforming the relationship between citizens and Government—a subject dear to your heart, Mr Speaker. However, each Government Department has a different approach to handling data, and there is total chaos among officials and Ministers about what is allowed, with, consequently, deep distrust among the public. In government, we will instigate a review to set out a coherent and ethical approach to data sharing. Will the Minister join us in committing to the principle that people own their own data and it is for them to say what happens to it?
Mr Maude
I am happy to welcome the hon. Lady to the movement for open data. Under the coalition, the UK Government have become the world leader in open data. There is more that can be done with sharing data, but it is very sensitive and difficult. We are determined not to make the mistake that her party made in government when it had a train wreck in trying to move data sharing too fast. We have a lot of ongoing work on this, and I would be very happy to share the thinking with her.
My hon. Friend is a real champion for north Lincolnshire and for Humberside in general. We are determined that this recovery is going to be different from previous recoveries and that we are going to see growth in jobs and investment right across our country. That is why he and others with me have been working hard to bring investment to the Humber, including of course the vital Siemens plant, and why we have seen employment go up and unemployment come down. Because of the local growth deals agreed in July, the Humber local enterprise partnership has over £100 million for local projects, which should create up to 9,000 jobs and allow more than 5,000 homes to be built, so we are determined to see recovery embedded right across the country.
Q9. I am proud of the NHS in the north-east, but not one hospital trust is meeting the Government’s own scaled back targets for treatment in A and E—not one—yet the Prime Minister prefers to focus on a top-down reorganisation of the NHS, breaking it up for the benefit of his buddies and putting competition before care and profit before people. Does he really imagine we will trust him with our NHS?
Let me tell the hon. Lady what is actually happening in the NHS in Newcastle. Since 2010, there are 191 more doctors and 698 more nurses. Last week over 3,000 patients went to A and E, and all but 190 were seen within four hours. If getting rid of the bureaucracy in the NHS, which we did in England, was such a bad idea, why is the NHS in England performing better than other parts of the country that did not take those steps?
(11 years, 2 months ago)
Commons Chamber
Mr Maude
It can take many forms, but the point is that the service is provided or the transaction is conducted digitally—it is conducted online—although not necessarily by the citizen themselves. For example, it could be done in a library, where someone sits alongside the citizen to help them to input data or conduct the transaction, or it could be done on the telephone, with someone on the other end to put data into the web service. There are a lot of different ways of providing it, and they will be fashioned around the needs of the user, not the convenience of the Government.
In the spring, the Minister announced his digital inclusion strategy to exclude 5 million people. In the summer, he told pensioners to get online or lose access to Government services. In the autumn, farmers found that they needed a credit reference from Experian to apply for common agricultural policy grants. The list of people he is excluding grows day by day. Next week, a report for the Labour party will highlight the impact of his policies on the most vulnerable, and how a Labour Government will change that. How many more people does he intend to exclude from public services before he is voted out of office?
Mr Maude
I invite the hon. Lady to dream on, on that front. Her party is ill-equipped to criticise us. The last Labour Government’s definition of an online service was enabling people to download a form from the web, print it off, fill it in by hand and send it off by post. They regarded that as an online transaction—they were not quite in the modern world. We are glad that she is catching up, but she still has a long way to go.
(11 years, 5 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
It is a pleasure to serve under your chairmanship, Mr Havard—particularly in this debate. I congratulate and thank my right hon. Friend the Member for Salford and Eccles (Hazel Blears) who secured this important debate and has worked hard to push the agenda forward so constructively.
The debate has indeed been constructive so far, and there have been passionate speeches on both sides, from the former Minister, the hon. Member for Ruislip, Northwood and Pinner (Mr Hurd), the hon. Member for Warwick and Leamington (Chris White), my hon. Friend the Member for Huddersfield (Mr Sheerman) and my right hon. Friend the Member for Salford and Eccles. I shall try to maintain that constructive manner, but I do not guarantee that I shall succeed as well as my right hon. Friend did.
We recently witnessed one of the biggest crises of capitalism that the world has seen. Many ordinary people are still coping with its consequences, particularly for the cost of living. Yet with any crisis comes an opportunity, and in this case it is the opportunity to rebuild the economy into one that is more focused on long-termism and value creation, with social enterprise and social value at its heart. Some in the Government may be keen to get back to a business-as-usual approach to the economy, but the Labour party wants social enterprise and a social economy to be at the heart of things. Social enterprises help to build and sustain communities, and their hearts beat to the same pulse as that of the Labour movement’s founders—namely voluntarism and collective action, as my hon. Friend the Member for Huddersfield eloquently described.
We in the Labour party believe that genuine social enterprises can offer examples and incentives to both the private and public sectors. They can offer improvements in the delivery of some public services. Unlike some large contractors such as Serco and G4S, social enterprises are embedded in the heart of their communities, and as small organisations they can pilot and test small-scale incremental innovations in service delivery while developing new skills in the communities where they are based. By being strongly rooted in communities, enterprising and properly regulated, social enterprises can identify new and more socially effective ways of delivering public services, thus providing an example to Government. Indeed, they can be the innovative front line of the public sector.
The leader of the Labour party, my right hon. Friend the Member for Doncaster North (Edward Miliband), was, in government, the Third Sector Minister. He championed the transformative potential of social enterprises and began putting in place the infrastructure to enable them to thrive. That included the legislation for the foundation of Big Society Capital. I am pleased that the present Government have carried some of that work forward, although not surprisingly they are not doing so with the same scope and ambition that I would hope for.
Building and supporting the social economy is not something we can do overnight. It takes hard work. I thank all the organisations that have been involved in generating ideas and pushing them forward to Parliament and the public. We all know how much work that takes, including talking to different people and groups—the social economy is a broad church—to develop positive and constructive ideas. Indeed, we are going through that process now, and I welcome the input being given.
Despite the time at my disposal, I cannot respond in detail to every point made by my right hon. Friend the Member for Salford and Eccles; many ideas are currently being considered as part of our policy review. However, I shall touch on as many as I can. My right hon. Friend spoke of establishing a social sector with a clear corporate identity. I share that aim. One of the things that has surprised me about the sector is the way it has been able to defy definition for so long. If we want to promote the role of social enterprises—and that will be a key aim of the next Labour Government—we need to understand what they are, and ensure that they have the skills to take up their role in a new economy, which they champion.
For example, we must not allow what I would call para-third sector organisations to brand themselves as social enterprises to win more contracts or qualify for incentives. It is unfortunate that the Government have so far been seen to load the procurement playing field very much against genuine social enterprises in favour of private sector companies that often parade as social enterprises.
We have heard about social value in procurement, reporting and standards, and the Public Services (Social Value) Act 2012. I echo the tribute paid by my right hon. Friend the Member for Salford and Eccles to the hon. Member for Warwick and Leamington for his work on that important measure. The 2012 Act builds on many achievements of the previous Government and, in fairness, earlier Administrations. It is a real and symbolic step forward, and an important one, despite the fact that many worthy provisions were removed from it. We would have gone further with it; we tabled amendments to improve it. Both the former Minister, the hon. Member for Ruislip, Northwood and Pinner, and the hon. Member for Warwick and Leamington have spoken about the compromises necessary to get a private Member’s Bill passed. We would look to build on and extend the Act.
At £86.8 billion a year, the public sector’s overall procurement spending power rivals its legislative power. The Labour party recognises the power of Government spending and procurement in creating and sustaining social value. We have already announced that we will require suppliers to offer apprenticeship opportunities on all public contracts of more than £1 million. We have also said that private companies that win public sector contracts will have to be more transparent.
Hazel Blears
I am hanging on my hon. Friend’s every word; no doubt many social organisations want to know where we will be going with our manifestos, as that is the period we are in. She has talked about extending the 2012 Act, and that is welcome. I want to ask about extending it to infrastructure and goods. There are now many housing organisations—such as City West in Salford—that are renewing their whole housing stock and want to put social clauses into their infrastructure expenditure. City West has created social enterprises such as Gardening Guerrillas and Pirate Painters and a handyman service, and it is running sweat equity programmes. It is incredibly innovative, and housing associations throughout the country are doing similar things. Is my hon. Friend saying that we will extend the Act to goods and infrastructure as well as services?
I thank my right hon. Friend for that intervention and the examples of the many ways in which social enterprises can contribute to their communities. I will have to disappoint her as I am not in a position to give manifesto commitments in this debate, but we are looking closely at the measures taken out of the Public Services (Social Value) Act 2012, as it made its way through Parliament, for ways to ensure that social enterprises can contribute to local communities more extensively than is currently allowed. I am afraid that she will have to be content with that limited answer.
Across central and local government, contracts are often offered on a scale that squeezes out social enterprises and charity providers, which means that, effectively, only established, vested interests can bid. That may drive down costs in the short term, but, in the long term, the number of providers dwindles, as value is extracted from communities and new burdens on the taxpayer are created elsewhere.
Government needs to be working as a whole towards delivering social good through public services and not simply shifting burdens around by cost-cutting in one area while creating new needs in another. Successive Governments have sought to support social enterprise in public service delivery, yet public procurement remains a significant and growing concern. At the round tables and meetings I have held throughout the country on social enterprise, access to public procurement has remained the No. 1 concern.
Many public service sectors are now dominated by what I would call private sector oligopolies: often large multinational corporations that are well versed in winning public sector contracts. They have become so large and complex that, like the big banks before them, the Government cannot afford to let them fail. In my city of Newcastle, the council is supporting local businesses and small and medium-sized enterprises by awarding contracts tendered below a certain threshold to local businesses. In nearby Sunderland—our arch-rivals in some respects, but here we are working to the same aim—the council has a similar system and, as a result, north-east businesses account for 68% of such third party spend overall.
We want to draw on the benefits and innovation of social enterprises in public services, which is why last month I announced that a Labour Government in 2015 will enable Departments and local authorities to offer some contracts exclusively to social enterprises and organisations with a public service mission. The social enterprises will have to demonstrate how they can add value and display the management skills in innovation that we expect from the private sector, so, to that end, we will explore the establishment of a centre of excellence to support social enterprises as contractors. The infrastructure necessary to support social enterprises is probably the second biggest issue I come across in my conversations with social enterprises: skills, governance, back-office, computing and IT all need further support.
I turn briefly to social investment. My hon. Friend the Member for Huddersfield set out eloquently the potential for crowd sourcing as well as the importance of the social investment sector and how the UK leads the world in social innovation. We are looking at ways in which we can further support social investment. We want to see a comprehensive change in the social enterprise landscape, with services being less transactional, more focused on individuals and delivered at the most local level possible. We are looking to social enterprises to support that aim.
Social enterprise has the potential to be the innovative front line of both market competition and public service delivery, delivering social value and adapting to a world in which there is more emphasis on social value creation and retention. We look forward to working with social enterprises to enable that and, as part of that, I look forward to the first Social Saturday.
The Minister for Civil Society (Mr Brooks Newmark)
I am pleased to have the opportunity to serve under your chairmanship, Mr Havard. I congratulate the right hon. Member for Salford and Eccles (Hazel Blears) on securing this important debate, which is my first of the new parliamentary term and only my second as the Minister for Civil Society. I also pay tribute to my predecessor, my hon. Friend the Member for Ruislip, Northwood and Pinner (Mr Hurd), for his brilliant leadership when he was in this role. I have large shoes to fill, but I will do my best.
I cannot think of a more exciting subject with which to begin, because Britain’s social economy is indeed thriving. We have got to this point through the hard work and commitment to support the sector provided by successive Governments, including that of the right hon. Member for Salford and Eccles. She continues to be a champion of charities and social enterprises as a member of the all-party group on social enterprise and shows commitment to ensuring that the Public Services (Social Value) Act 2012 achieves its full potential.
I take on board the right hon. Lady’s point about the importance of having measurables and consistency. Thinking about how to extend the social economy to infrastructure is a great idea. The hon. Member for Newcastle upon Tyne Central (Chi Onwurah) was absolutely right to say that, with £86 billion of public procurement, there is much scope for social enterprises to take advantage of what is out there. As the new Minister, I hope that I can try to facilitate that.
I omitted to welcome the Minister to his position, but I would like to do so now. If he is going to carry on saying that I am absolutely right, long may he remain in his position.
Mr Newmark
The hon. Lady represents Newcastle, which is the home of my football team, so she can do little wrong in terms of representing that exciting city—it is second only to Braintree, of course.
I also pay tribute to the right hon. Member for Salford and Eccles for her support of Big Society Capital through her role on its advisory board and her regular public appearances, as well as for her support for mutuals. Such contributions have been invaluable to a growing economy that includes organisations, entrepreneurs, innovators and investors who are committed to supporting positive social change.
I am grateful for the bipartisan approach to this issue and to the right hon. Lady for regularly reminding us how this work transcends party differences. It is about supporting those charities and enterprises who work tirelessly to improve people’s lives and communities. Members of all parties have the same agenda: we want to improve people’s lives, and the voluntary and charitable sector leads on that objective.
I think the right hon. Lady said that medium-sized social enterprises employ more than 1 million people; in fact, they employ 2 million people and contribute more than £55 billion to the UK economy each year—an enormous amount. The UK already has one of the most developed social investment sectors in the world and it is growing all the time. A few weeks ago, I visited the Repair Academy in Wiltshire, which transforms unwanted household goods into marketable, new products: upcycling as well us recycling. It is not only doing that to make a quick buck; it is equipping the young people who work for it with the skills they need for the world of work and working to change public attitudes to waste and recycling.
So yes, there is a business mentality, but it is also about public and social good. Too often, we think of those things as being mutually exclusive; allied together, they can be a truly powerful force, strengthening communities and changing lives, developing new solutions to seemingly intractable social problems and transforming the way we deliver public services to this country.
The right hon. Lady also mentioned three other great examples, including Place2Be and—was it Born Back?
(11 years, 6 months ago)
Commons ChamberMy hon. Friend is absolutely right. To be fair, President Obama has been very clear that what has happened in Ukraine is unacceptable. He has been working hard to try to keep the United States and the European Union working together, because, obviously, if we can list the same people, take sanctions against the same banks, take sanctions against the same airlines and look at a third tier of sanctions in the same way at similar times, we will maximise the impact of what we do.
Parts of St James’s park have been turned into a shrine of flowers and footballing memorabilia as a mark of respect for my constituent Liam Sweeney and John Alder, who died following the team they loved. Does the Prime Minister agree that the contrast between that and the total lack of respect shown for the victims’ bodies and remains at the crash site itself is totally unacceptable? When does he think the bodies will be brought home, and what is he doing to support the victims’ families in the meantime?
The hon. Lady is absolutely right: this is a question of basic decent humanity. Anyone who saw on their television screens the thuggish separatists wandering around and fiddling with people’s personal belongings will agree that that was a deeply unpleasant thing to have to see. I cannot give the hon. Lady an answer about when the bodies will come home. Many of them are on the refrigerated train, and negotiations and discussions are under way right now about trying to get that to leave to go to a Ukrainian city. I will try to keep the House and the country updated.
(11 years, 7 months ago)
Commons Chamber
Mr Maude
The practices to which the right hon. Gentleman refers date from contracts let by the previous Government, and those malpractices had been going on for many years. It is because the quality of contract management in Government is at last beginning to improve that those malpractices came to light at all. Therefore, the taxpayer was able to be recompensed for the money that had been wrongly pumped out of the door during that time. We are making progress on this, but again there is more to be done.
The Minister boasts that his efficiency agenda is cutting hundreds of millions of pounds from Government IT spend, but figures that we have seen show that IT spend is flat overall, and has in his Department and others, including the universal credit maxed out Department for Work and Pensions, risen massively between 30% and 70%. Will the Minister confirm that IT spend is not falling, and accept that it is his lack of leadership in allowing continuing turf wars between the Department for Business, Innovation and Skills, the Cabinet Office and DWP that is preventing the IT transformation that we need?
Mr Maude
The hon. Lady is completely right that we need an ICT transformation. What we inherited—the legacy—was a series of extremely expensive, opaque IT contracts. The Government did not even know what they were getting for what they were spending. We need to reform that. We must wait for some of these contracts, which were excessively long, to come to an end. That process is beginning. The British Government were spending more on IT per capita than any other Government in the world, yet our rankings, until recently, were falling. There is much to be done, but she is in no position from where she sits to be lecturing this Government, who are grappling with the issue.
(11 years, 9 months ago)
Commons Chamber
Mr Maude
We have made considerable progress. In the civil service alone, some £30 million of taxpayers’ money was being spent on subsidising union representation. That is perfectly proper if duties relate to employment, but this was going way, way beyond. We have reduced significantly the number of full-time representatives. There were 250 in central Government. That is now down by nearly 170.
Following the launch of Labour’s digital government review, which is focused on empowering people, and after four years of this “digital by default” Government, with 16 million UK citizens lacking basic digital skills, the Minister has finally announced a digital inclusion strategy. The digitally excluded are vulnerable to cybercrime, but are punished by this Government for not using their digital services. Will the Minister explain why his inclusion strategy excludes 7 million of our fellow citizens from the digital future?
Mr Maude
I am sorry that the hon. Lady takes that view. For one digital service that we provide—the lasting power of attorney—the assisted digital for those who are not online is provided by a number of groups that specifically help elderly people. Where there is a digital service, we are insistent that there is an assisted digital service for those who are not currently online. We want to do much more to increase digital inclusion, so that more people are online.
(12 years ago)
Commons ChamberRarely have we debated a Bill that is so long and so broad and yet so ineffectual, given what it purportedly seeks to achieve. In true “Yes Minister” style, when faced with the important and necessary challenge of deregulation, the Government have decided to deal with the difficult bit in the Bill’s title and do very little about it in the text.
Mr Letwin
I am grateful to the hon. Lady for giving way, and I assure her that I shall not seek to intervene on her on a regular basis. If the task of deregulation is so necessary—a proposition I fully agree with—why were no such steps taken during the many years of the Labour Government?
I find it hard to believe that the Minister has intervened to make a point for which he has so little evidence. During the last Labour Government, we deregulated to bring benefits to business of £3 billion a year. This Government’s record is in no way comparable with that.
The hon. Lady might wish to reconsider those remarks. When we checked with the House of Commons Library, we found that, during the last Parliament under the Labour Government, the equivalent of six new regulations were introduced every working day. Does she deny that?
The figures that I gave were accurate. Speaking of the regulations that we brought in, was the hon. Gentleman against the minimum wage? I know that he voted against it. Was he against every aspect of the legislation that we brought in?
The hon. Gentleman would be pleased if his Government had our record on growth and business starts.
We now know where the Minister without Portfolio, the right hon. and learned Member for Rushcliffe (Mr Clarke) has been hiding for the past year. He has been off with the Minister for Government Policy tackling big issues such as deregulating the sale of knitting yarn, freeing our children to buy their own chocolate liqueurs and decriminalising household waste. When the Prime Minister told people suffering from high energy bills to put on a jumper, the Minister sprang into action by making it easier for them to knit their own.
My right hon. Friend the Minister for Government Policy made the point that there is a lot of regulation that we can do nothing about because of EU regulation. If the hon. Lady cares so much about regulation, why will she not support the European Union (Referendum) Bill?
I know that the Government face a real challenge in keeping their Members off the subject of Europe, but perhaps in this debate on deregulation, they will understand that we are not here to discuss the potential of a referendum. I will come on later to talk about the relevance of Europe to the matter under discussion. Europe is not the issue that confronts my constituents today. My constituents are being hit by the cost of living crisis and the measures that this Government, not Europe, have brought in to ensure that their wages do not rise at the same rate as prices.
It is nice to know that when the Secretary of State for Communities and Local Government spoke eloquently about every Englishman’s right to have the remnants of their tikka masala collected promptly, the Minister boldly made sure that they would not face prosecution if they placed it in the wrong receptacle. It is all in this Bill—farriers, road humps and late-night takeaways. This is the Christmas tree Bill to end all Christmas tree Bills. In fact, Christmas trees are one of the few things that are not covered by this Bill.
It appears that the hon. Lady is going to oppose every measure in this Bill. Is that the case?
There are some measures in this rag, tag hotch-potch of a Bill that are welcome and that we do not oppose. What we oppose is the approach of this Government to a cost of living crisis, which is to attack the rights of ordinary working people.
By my count, the 69 clauses and 17 schedules cover at least 12 Whitehall Departments. As I have said, although there are many parts of the Bill that we support or do not oppose, there are some very disturbing proposals hidden beneath the knitting yarn, which we will vigorously oppose. There are fresh attacks on employment rights, with the removal of yet more powers from employment tribunals. Those are measures that the Government’s own impact assessment claims will have a negligible effect on businesses or even cost them money. We will not support any new attacks on working people.
Does the hon. Lady not agree that the cumulative effect of the Government’s reforms of small business red tape and regulation have made it easier for those businesses to create jobs and growth and provide the results that we all want, which is our constituents in work?
We all know that small businesses need a cut in business rates, as we have proposed, and then a freeze. We will also freeze their energy bills, which will save an average of £1,800 a year. At the same time, we would change the economy so that it delivers secure employment, which would benefit businesses large and small.
We want this Government to acknowledge, once and for all, that it was not working people’s job security that caused the global financial crash and that preventing employers from discriminating against pregnant women is not the root cause of the cost of living crisis. This Government are so out of touch that they not only do not understand the challenge they face—the need for an economy that works for all, delivering good, well-paid jobs—but fail to understand the real solutions to the problems that they do see.
The hon. Lady talks about preventing mythical attacks on working people. Does she concede that under the policies of this Government more than 1 million more people are in work in this country?
I know that almost 1 million young people are unemployed and that 1.3 million people in part-time work are seeking full-time work. I also know, because I speak to these people in my constituency, that some people who are supposedly in jobs with zero-hours contracts are getting no work, cannot make any plans and cannot go out and spend money. That is the working environment that this Government support and that the next Labour Government will change.
Let us turn to the first, and most worrying, part of the Bill—the general measures affecting business. Exempting self-employed people in certain industries will create confusion about who is covered and who is not. The Institution of Occupational Safety and Health, the chartered body of health and safety practitioners and the world’s largest health and safety professional membership organisation, is opposed to that, calling it
“a very short-sighted and misleading move”,
and saying that
“it won’t actually help anyone; it won’t support business; but it will cause general confusion.”
Even the Federation of Small Businesses, which supports the change in principle, says that the implications are not well understood and it is particularly concerned about the unintended consequences for insurance, which will need to be considered further in Committee if the Bill gets there.
The Bill will also remove employment tribunals’ power to make wider recommendations to employers who have been judged to have discriminated against someone unlawfully. Such recommendations are only advisory—they are not mandatory and they promote good working practice. Why are the Government trying to prescribe the ability of tribunals to make observations? What are they afraid of? The Prime Minister says that we are in a global race, but that race cannot be won by attacking employment rights at every opportunity. The Opposition will not support a race to the bottom.
The House of Commons Library considered the impact assessment for that measure and found that despite the Minister labelling it deregulatory and counting it as an out under the Government’s arbitrary one in, two out system, business will incur a cost as a result of the removal of the power. Only this Government could propose a supposedly deregulatory measure that costs business money. Those on the Front Bench look slightly puzzled; this is work by the House of Commons Library.
I am not sure how often the hon. Lady talks to business, but perhaps she saw the submission from the British Chambers of Commerce, which said:
“The BCC supports the thrust of this Bill. The BCC welcomes measures to reduce unnecessary health and safety regulations on the self-employed”.
She should talk to business more before she comes to this House.
I have just quoted the FSB, which stands for the Federation of Small Businesses—I hope that the hon. Gentleman is aware of that. I talk to business regularly and if he disagrees with the FSB, we would be pleased to hear the evidence on which that is based.
The Government sacked hundreds of staff at great expense several years ago, and they are now seeking to re-employ them through a recruitment firm, hiring at least half of them. I have seen the job advert, and apparently they will work on the Government’s red tape challenge and deregulation programme. [Interruption.] Well, it is certainly true that the Government need all the help that they can get, but I hope that they will succeed—
Order. Mr Maynard, I do not need comments like that. We are listening to a debate. I know that it is not normal for everyone to agree with every word, but we have had enough of comments being shouted across the Chamber.
It is very gallant of the hon. Gentleman to offer that information. I will say to him as well that, although his hon. Friend has also been making comments across the Floor of the House, I hope that it will stop now.
Thank you, Madam Deputy Speaker.
I hope that the new employees will succeed in making the Minister understand that we do not build an economy that works for working people by attacking their rights.
Does the hon. Lady welcome the shared parental leave that the Government have introduced as part of trying to make things easier for couples who want to work and share parental leave during the course of their professional life?
The Labour Government did more to support working families and working parents than any Government before, and of course we support that measure.
I shall try to make progress and speak to my experience with business. Before entering the House, I worked for many years in telecoms in the private sector in the United States, the United Kingdom, France, Nigeria and many other countries around the world; I worked in companies large and small. I then worked for the industry regulator in this country, Ofcom, for six years, so I have seen regulation from many different viewpoints, and I am familiar with the impact that it can have on businesses of all sizes. I recognise the burden that it can represent, particularly on small businesses.
The Opposition believe that Government must seek to reduce unnecessary regulation at every opportunity, but unfortunately, this Government’s debate on regulation is stale and simplistic. Smart regulation underpins fair markets, and can level the playing field for small firms and new entrants—the very people and businesses that create new jobs and prosperity. Smart regulation saves lives. It is a matter of great pride for all of us, I hope, that the 2012 Olympic infrastructure was built without the loss of one life. We can certainly be sure that regulation played a part in that. The men and women working on those construction sites know the value of having clear health and safety laws in place, and I only wish that were the case for Government Members.
Smart regulation can help to drive innovation and growth. Labour’s zero carbon policy helped to make this country a world leader in low-carbon technology and architecture. Yes, regulation—
I am going to make progress, as many Members wish to speak.
Regulation is a concern for some businesses, but business people understand that rules are needed to protect people’s safety and rights, promote competition and prevent employers from being undercut by those who do not play by the rules. As the Federation of Small Businesses has noted, the concerns of business are often about how regulations are developed and introduced, how they are enforced, and the duplication and overlapping rules that waste their time. The Government’s rather crude “one in, two out” approach fails to recognise that sensible and proportionate regulation introduced and implemented properly can promote healthy, competitive markets. The issue is more complex than the number of rules coming in and out.
We believe it is essential to take a fresh look at existing regulation, how it is implemented, and how—in response to the right hon. Member for Wokingham (Mr Redwood)—it is translated from European directives. Regulation protects consumers’ and employees’ rights, ensures that our industries play their part in moving to a green and sustainable future, and keeps citizens safe; it has saved many lives. It is important that it is effective and enforceable. Challenges arise when ill-thought-through regulation has unforeseen consequences or is interpreted bureaucratically and inflexibly. Some regulation can certainly represent an unnecessary burden on businesses, particularly small and medium-sized enterprises that may not have access to legal advice to interpret regulation accurately or the resources to implement it fully.
When in power, Labour sought to reduce regulation by introducing the Better Regulation Commission and the ongoing better regulation programme, and made a number of legislative changes to reduce the cost of regulation. Our programmes for simplifying regulation delivered—[Interruption.] Our programmes delivered— I would have thought this figure would be of some interest to Government Members—£3 billion of savings to business per year. In contrast, the impact statement for the draft Bill—Ministers have not dared to produce a comprehensive summary for the current Bill—estimated that it would save business and civil society £10 million over 10 years. So we have savings of £10 million or £3 billion; I think the Minister can do the maths. The figures underline that while we all agree unnecessary regulation can be a burden on business, a sensible approach to deregulation is about more than repealing statutes.
In government, we introduced legislative reform orders to help Ministers to get unnecessary burdens on business off the statute book. However, as the Regulatory Reform Committee has noted, instead of using those 11 procedures already available to Government for deregulating, Ministers chose to invent a new one. We also set up the primary authority scheme and the Regulatory Policy Committee, as well as a Cabinet Sub-Committee to focus minds at the very top of Government. That was our record in government.
Building on Labour’s progress in government, the Bill seeks to introduce a growth duty on regulators, as the Minister explained. This duty will compel them to have regard to the promotion of economic growth when carrying out their functions and to carry them out in a necessary and proportionate way. We support the aims behind the duty and, clearly, the principle that regulators should go about their business in a proportionate way, but we must ensure that the duty does not inhibit or contradict the primary function of any regulator.
The crude proposals in the Bill do not fit into an overall strategy or vision for this country. They show no recognition of why growth is important to deliver good, sustainable jobs, to help people’s incomes rise faster than costs, and to ensure that we become richer as a nation. They do not mention long-term or sustainable growth—they refer simply to growth—and they fail to recognise that good regulation is necessary to protect jobs and growth. Is it right that a housing bubble or a casino-capitalism-fuelled, short-term growth spurt should be a primary consideration for the Office for Nuclear Regulation? I hope we all recognise that markets need to be regulated in order to protect growth and jobs, or are the Government suggesting that the underlying cause of the global financial crisis was too much regulation?
I am sorry to put the hon. Lady out of her stride, but I have slightly lost her point; I will be replying to this debate, so I just want to follow her argument. She has said that she is in favour of regulators paying regard to the aim of getting growth in the economy and of their regulations being proportionate to the risks they guard against, but now she appears to be speaking against that. I do not follow her argument: is she proposing to vote against the regulators being asked to have regard to the growth of the economy and against their regulations being proportionate? If so, I have not followed her logic. How on earth would our proposed measures produce a casino-like growth bubble? We are simply proposing a sensible constraint on regulators to make sure that they remain proportionate and do not do out-of-proportion economic damage.
I thank the Minister for his intervention, which, I regret to say, illustrates that this Government still do not understand the driving forces behind the global financial crisis.
Although we want regulators to have regard to the impact of their regulations, we do not agree that one of their primary objectives should be to support or promote short-term growth. There is a list of regulators. Should short-term growth be a priority for the human rights regulator? Either the Bill should be amended or the impact of the proposals should be clarified, so as to ensure that we do not find ourselves in a situation whereby all the regulators seek to promote short-term growth spurts, regardless of the consequences elsewhere. I hope that explanation has offered clarification, at least to a certain extent, and that Government Members will find it easy to discuss.
We have concerns about other parts of the Bill. Housing is a critical part of the cost of living crisis for families up and down the country, so should there not be a coherent, long-term approach, rather than ad hoc tinkering? Will not reducing the right-to-buy qualifying time hamper the ability of councils to build more homes at a time when they are needed more than ever? We will certainly seek proof that that will not happen. We will also seek clarification and reassurances on some of the measures affecting transport, licensing and local authorities, among others.
The decriminalisation of waste will, apparently, reduce the regulatory burden on households, but it should be remembered that in 1991 a then Tory Minister said something similar about the decriminalisation of parking offences. I doubt that many car owners feel that parking is less of a burden as a result, but it is certainly the case that it opened up new avenues of revenue for hard-pressed councils.
The proposals on justice are interesting. I imagine that the Minister without Portfolio, the right hon. and learned Member for Rushcliffe (Mr Clarke), approached the Lord Chancellor, who had just taken his job, and asked him what regulations he would like to get rid of, and that he came back with the idea of stripping away safeguards on the seizure of evidence from journalists, although we hear that that was not the intention, and a proposal to remove parliamentary scrutiny when he wants to close prisons. In answer to one of my parliamentary questions, the Ministry of Justice has revealed that, since 2010, it has yet to repeal any regulations, but has introduced eight. If those are the sorts of ideas that it has come up with, perhaps it is a good thing that we have been spared any deregulation by the Ministry of Justice during the past three and a half years.
Some measures in the Bill are welcome. Although those affecting businesses will have only a small impact on a small number of them, they are welcome, as are those on child trust funds. The measures on rights of way are also good news, provided that the full package agreed with the stakeholder working group is passed.
I pay tribute to the hard work of the Joint Committee on the draft Deregulation Bill, chaired by my noble Friend Lord Rooker. Although it was not given the time it felt appropriate, thanks to the Joint Committee the Bill is in a slightly better state than it was last July, but it is fair to say that the Government have not responded to many of its criticisms.
It is also fair to say that the overall reaction to the Bill has been underwhelming—lukewarm at best. Ministers are delighted with it, but reading the Bill, I realised that that is because it seems to be about removing burdens as much on Ministers as on business. By my count, half the proposals in the Bill will take away burdens from Ministers and the Government, while less than half will remove them from business. This is more doublespeak: deregulation is apparently about deregulating Whitehall, not small business. For some reason, that reminds me of the Localism Act 2011, which has somehow resulted in hundreds of powers being localised in Whitehall.
That explains why the expected impact of the Bill is rather low, and underlines why it is a rather simplistic tool for a multifaceted challenge. All Governments say that they want to reduce regulation—I am sure that every Byzantine emperor came to power on the promise of reduced regulation—but getting regulation right is much more about working behind the scenes with business and interested parties than about bluster and press releases.
I am just finishing.
Once again, this Government’s rhetoric extends far beyond their reach. The Opposition will seek to remove or amend the iniquitous clauses if the Bill is committed, and we believe that the remaining clauses will have a very limited, if welcome, impact.
(12 years ago)
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I congratulate the hon. Member for North Thanet (Sir Roger Gale) on securing this important, if difficult, debate. It is important because of the critical work that St John Ambulance does throughout the country, and I would like to echo the words of Members from all parties who have praised that work. Its volunteers are often literally the difference between life and death.
In my constituency, St John Ambulance volunteers are at St James’s Park—for those not fortunate enough to be supporters of Newcastle United, that is the home of football—for every home game, and they were also there for the Olympics. They are out in Newcastle every weekend supporting the ambulance service’s mobile treatment centre, the “booze bus,” so that our young people can enjoy themselves in relative safety and security. They also do vital work, as we have already heard, in educating and training young people in schools across the city.
The hon. Member for North Thanet raised some specific points that I will address in time, but I want to start by raising a few broader points to which the Minister can respond. As we have heard, like many charities, St John Ambulance has recently restructured. The hon. Member for Braintree (Mr Newmark) emphasised the fact that the recession has hit the voluntary and charity sector hard. Last year, 58% of charities reported that Government measures had had a negative impact on levels of funding, and half had taken steps to reduce wages and salary costs.
A survey by The Guardian’s voluntary sector network found that nearly one in 10 charities fear that they will not exist in five years’ time. In its report on the impact of welfare reform in Newcastle, published in November, called “The Big Squeeze”—I have a copy here for the Minister—Newcastle council for voluntary service found that, in the north-east, 30% of charities, rather than one in 10, fear that they will not exist in five years’ time. Nevertheless, year on year, demand for services continues to rise. In Newcastle, 62% of charities experienced an increase in demand for services last year, and 52% were using their reserves simply to survive. Newcastle CVS said in its report that, as a result, charities and voluntary organisations are all having to think differently and change their organisational culture in an attempt to be more resilient. We have heard some of the consequences of that in the case of St John Ambulance.
Sir Stuart Etherington, chief executive of the National Council for Voluntary Organisations, has said:
“The combination of increasing demand, rising costs and income levels that are often static or falling means that many charities are under unprecedented pressure at the moment.”
My hon. Friend the Member for Batley and Spen (Mike Wood) alluded to the fact that that pressure is being felt most in our most deprived communities, where charities are often most concentrated. The Civil Exchange think-tank has said:
“Millions of people, especially those who might need it most, are being excluded from the big society as cuts hit them hardest.”
That has put increasing demand on charities, and the issue is not just funding cuts. Welfare changes, such as the bedroom tax, and the reorganisation of the NHS, are putting more pressure on charities. At the beginning of the year it was reported that St John Ambulance is being sent to 999 calls as NHS paramedics are being driven to “breaking point”. It is not surprising, therefore, that charities are finding ways to adapt and survive in a climate of near permanent austerity.
The hon. Member for North Wiltshire (Mr Gray) emphasised that charities are not an arm of the state. We must regulate the sector to ensure that donors know that their money is not being spent fraudulently, but charities are not under the direct control of Parliament. Nevertheless, we must remember the pressures under which charities such as St John Ambulance operate when we criticise their response to those pressures.
While they are facing such serious and sustained financial challenges, charities also find themselves under attack from Ministers in the form of the Transparency of Lobbying, Non-party Campaigning and Trade Union Administration Bill, which is being debated on the Floor of the House as we speak. Ministers seem keen to return to some Victorian vision of society where charities provide welfare and services but do not have a say in policy. I hope that the Minister will respond to that point.
It is in such a climate that we must understand the operation of the Charity Commission. It has recently been criticised by the Public Accounts Committee for its failure in tackling fraudulent charities. The Cabinet Office is currently consulting on whether to extend the commission’s powers to act where there is abuse of a charity or non-compliance with charity law. When the Minister responds, will he tell us whether he feels that the commission is able fully to discharge its duties, and the proposed new duties, given the 30% cut it is operating under? Given that its board is picked by Ministers, will the Minister clarify the independence of the commission, which we have debated, and its role in policy making?
We recently learned that the Charity Commission wrote to Lords ahead of their consideration of key amendments to the Transparency of Lobbying, Non-party Campaigning and Trade Union Administration Bill, effectively “torpedoing” amendments to exempt charities from the Bill, as one charity head of policy put it. It is a strange situation wherein the charity regulator—a public sector organisation—is lobbying for a gag on charity campaigning. Will the Minister explain exactly what he sees the commission’s role as and how it can carry that out given its tight budget?
Finally, we have heard much about the concerns regarding the specifics of the St John Ambulance restructuring, particularly the impact in Kent, but also elsewhere. The restructuring of a shared service—on a shared ambulance basis—has apparently undermined local pride and support for the services on which so many depend. That seems to speak to a desire to ape what is all too often the private sector approach to public sector service delivery. However, the strength of charities is in their local communities, something emphasised by the Government’s talk of big society and localism.
Nevertheless, we all too often see priority given to big national players when it comes to public sector contracts. I hope the Minister will give his views on the importance specifically of local, social and community assets in carrying on the good work of so many in the third sector.