Oral Answers to Questions

Debate between Jo Swinson and Philip Hollobone

Thursday 26th February 2015 Commons Chamber

[Jo Swinson]

The Government’s position is not to support that particular Bill, but we are encouraging much more transparency through the Think, Act, Report initiative, to which more than 270 employers, covering 2.5 million employees, have signed up. Nearly half of them have done an equal pay audit in the last year and two thirds are publishing more information on gender equality. I agree that this is a hugely important issue on which we need to make more progress, and we are committed to doing so.

[Mr Philip Hollobone (Kettering) (Con)]

Which employment sector has the greatest gender pay gap, which has the least and what is the Minister doing to get representatives of the one to talk to the other?

[Jo Swinson]

That is a fantastic question, and I shall write to the hon. Gentleman with the specific statistics for different sectors. Sectoral differences are a significant part of the gender pay gap. We know that occupational segregation—the congregation of women in much lower paying sectors—is a significant driver of about one third of the pay gap, which is why the initiatives to get more girls studying STEM subjects are so important.

Post Office

Debate between Jo Swinson and Philip Hollobone

Wednesday 27th November 2013 Commons Chamber

[Jo Swinson]

The hon. Lady makes a genuine point, and it is important, depending on what the transaction is, that appropriate privacy can be given. At the same time, the old model of the post office with a sort of fortress that had to be built in, seemed outdated to many people, putting a barrier between the customer service assistant and the customer. It also added a huge amount of cost to the way in which the network was run. It is important that retailers and sub-postmasters providing services can take into account the needs of all their customers, and if the hon. Lady has concerns about what is happening in a particular post office, I am certainly happy to look at that.

[Mr Philip Hollobone (Kettering) (Con)]

May I welcome this massive new investment in sub-post offices? Many sub-post offices that were much loved and well used in my Kettering constituency were closed under the Labour Government. I congratulate the coalition Government on lifting the long, deep, dark shadow of closure that has hung over local sub-post offices for so long.

Social Enterprise: Wider UK Economy

Debate between Jo Swinson and Philip Hollobone

Tuesday 3rd September 2013 Westminster Hall

[The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Jo Swinson)]

I am grateful to my hon. Friend the Member for Warwick and Leamington (Chris White) for securing this debate on the important issue of social enterprise. I start by paying tribute to the work that my hon. Friend has done and will continue to do on the matter, in his role as social value ambassador and as chair of the all-party group on social enterprise. He raised several important issues in his speech, which I look forward to debating. As a Minister with a keen interest in social enterprise, I look forward to working with him in future, because we must drive progress and help social enterprises not only to become successful in themselves but to develop into an attractive model for other organisations to adopt.

My hon. Friend described the numerous advantages that flow from social enterprise as a business model, including resilience in tough times, increased turnover and improved diversity in comparison with more traditional business models. He focused, importantly, on the fact that social enterprise is a new model of business, which offers an exciting opportunity. The financial crisis of 2008 was a huge shock to our economy. We all want our economy to grow, to recover and to get back on to a sure footing, but simply to return to business as usual in exactly the same way as we did before the downturn would be a mistake and a wasted opportunity. We have an obvious opportunity to consider new ways of doing business that might better serve not only our economy but our communities and our society. Business is inextricably linked with the communities and societies in which it operates, because its customers and staff are based in that society. Many more enlightened businesses recognise the need to hold on to that.

It was also right to highlight that growth should help to lead to higher profits, which can increase wealth and improve living standards. However, it is also important to ensure that, as businesses grow, they can, as my hon. Friend said, reinvest in the community in which they operate. Many MPs on both sides of the House are interested in supporting local businesses in their areas so that more of the money spent in the local economy can stay there and help local people to thrive. There is also the issue of the investment organisations make in their people.

Social enterprise is a good model from a business and a productivity point of view. As my hon. Friend said, however, it is also often one way of doing the right thing. He highlighted the fact that customers and investors are more and more interested in the way in which businesses operate. The issue is not just the return businesses provide or the price people pay at the till, but the way in which businesses operate in wider society. Through the Trading for Good website, my Department has been supporting initiatives to enable small businesses to showcase the great things they are doing, such as employing apprentices and dealing with youth employment in their area, as well as their environmental credentials and their support for fair trade and developing countries—there is a whole range of ways in which small businesses take their responsibilities seriously. There is, therefore, an increasing appetite for a different approach.

That very much dovetails with an issue I have championed in the House for many years. Before I was a Minister, I was a co-founder of the all-party group on wellbeing economics, which recognises my hon. Friend’s point about how we see the importance of growth. Is GDP the be-all and end-all? If we ask most people what they want from life, they will talk about the health and happiness of themselves and those close to them, but we have a system that has until now deified the pursuit of GDP growth above all else. That is why I was pleased to see the Government working with the Office for National Statistics on measuring national well-being so that we can assess policies and the impact of Government decisions against a much wider range of metrics than purely GDP. Although GDP remains an important tool, we should also be able to analyse social and environmental impacts, which might even lead to some more innovative policy proposals. That is an important approach in business, as well as in Government policy making.

While it is important to extol the benefits and virtues of social enterprise, it is worth noting in passing that businesses can use different models in taking their responsibilities seriously. Many businesses out there may not meet the definition of a social enterprise in terms of where their profits go and what their prime purpose is, but they none the less take great pride in conducting their affairs with a degree of responsibility we would want others to copy.

We want not only to promote social enterprise, but to encourage other business models to embrace corporate responsibility. Indeed, as part of a consultation, a call for views is currently ongoing on how to develop a corporate responsibility framework so that businesses representing a range of different models can showcase what they are doing on corporate responsibility. I encourage interested hon. Members to contribute to that call for views before it closes later this month. Indeed, for the benefit of those watching on BBC Parliament or reading the record of our proceedings in Hansard, I should say that that offer is open not only to MPs.

It is vital to recognise the clear benefit of social enterprise to our economy. While it puts social and environmental concerns before profit, it also plays a significant role in our economy. In 2012, the BIS small business survey found that there were 70,000 SME social enterprise employers. The figure is as high as 283,000 if we include sole traders, and it is even higher if we include larger companies. Many of the 1,700 registered housing associations are social enterprises, and they spend £13 billion a year in the UK. Social enterprise creates employment for about 1 million people in the UK economy, and it makes an overall contribution of £18 billion, so it already plays an important role across the wider economy.

Through public sector contracts, we need to improve the way in which smaller social enterprises can win business, and there is an opportunity to enhance further the role social enterprise plays. However, we would not be doing social enterprise justice if we viewed it purely through the lens of the role it can play in public sector contracts, because it also plays a vibrant role in the private sector, and its main source of income is trade with the general public.

My hon. Friend was absolutely right when he made the key point that BIS has a key interest in this area. Like him, I do not want social enterprise just to be lumped in with charities and civil society, important though they are. This is a business issue, so BIS is rightly involved. Back in June, we reaffirmed our commitment to helping SMEs succeed, and we will launch a strategy on that in the autumn. One of the key stakeholders we will be working with in developing it is Social Enterprise UK, because social enterprises are an important part of the SME sector.

I would like to outline a few of the ways in which the Government are supporting social enterprise. Community interest companies were mentioned, and they are a new and exciting way of forming a company. As my hon. Friend said, they are covered by my Department. Such companies are the world’s first legal form for social enterprises, so we are pioneering on this matter, which is the right place for Britain to be. That model is very helpful.

We also have the regional growth fund, which will provide £60 million of funding over six years for lending to small and micro-businesses that create or safeguard jobs, with a significant impact in communities in parts of the country that most need that funding, some of which goes to social enterprises.

There is also the European regional development fund. We secured £3 million, which increases to £6 million with match funding, to support the work of social enterprises in Yorkshire and the Humber. We hope to continue the programmes under that fund.

It is important to talk about the social investment market, which has now passed the £200 million mark, so it is rapidly growing. That figure is up from £150 million just three years ago, and we want to grow the market further so that it is measured in billions, not millions. The proposal for tax relief on social investment, which my hon. Friend mentioned, is a key part of that. The Prime Minister launched it at the G8 social impact investment conference on 6 June. Again, I encourage people to send their views into the consultation on this issue.

My hon. Friend encouraged me to ensure the Treasury did the right thing, and I am flattered by his view that I have the power to require it to do anything. However, I know my Treasury colleagues are also committed to this issue, and the intention is that we will introduce tax relief in 2014. The consultation is open until Friday, and I hope my hon. Friend will contribute; the more voices there are encouraging the Treasury, the better. The proposal will be an important part of the Government’s support for social enterprises, and it will complement initiatives that are already in place, such as Big Society Capital—the world’s first social investment bank—and social impact bonds.

I could not finish without touching on the Public Services (Social Value) Act 2012, which I am sure my hon. Friend is proud to have introduced in the House. Not every MP gets to take legislation through the House, and it is not easy to do, so I congratulate him on his success. The Act means public sector organisations must take account of economic, social and environmental well-being in connection with public services and contracts, which should be good news for social enterprise.

I hope I have outlined the Government’s support for social enterprise, as well as how significant social enterprise is to the UK economy more widely. Social enterprise adds vitality and challenge to the vibrant mix of business models in the UK economy. The goal is to look beyond simple measures of GDP, which do not capture everything that determines society’s well-being. As we still come to terms with the financial crisis of 2008, the contribution of social enterprises will no doubt be more important than ever. I hope today’s debate has encouraged us all to think more carefully about what more the Government can usefully do to support this important sector.

[Mr Philip Hollobone (in the Chair)]

Perfect to the second.

Post Office - Horizon System

Debate between Jo Swinson and Philip Hollobone

Tuesday 9th July 2013 Commons Chamber

[Jo Swinson]

I am always keen to be concise. I think I did answer the question earlier. I pointed out that the transformation programme is an important part of the Post Office’s future. We are making sure that we look at how it will be delivered with the new strategy for the Post Office that will published, and we are working closely with all the stakeholders to ensure we can do that. What is important is that whatever the future system looks like, there will be a choice for sub-postmasters, rather than forcing them down a particular route.

[Mr Philip Hollobone (Kettering) (Con)]

Being a sub-postmaster is a very worthy profession, at the heart of many local communities and helping highly vulnerable people. With respect, I think the Minister dismisses too lightly the devastating impact that the Horizon system has had on a small number of people. The very least that Post Office Ltd should be doing is setting up a legal fund to review each case, because many will have pleaded guilty to false accounting, given the situation with the system and the legal advice they received at the time.

[Jo Swinson]

I absolutely recognise that the impact on individuals has been intensive and considerable, and I think I have made that point to other Members who have raised this issue. Constituency MPs are absolutely representing their constituents in taking forward these proposals, but I think there is a distinction to be drawn before assuming that convictions are therefore unsafe. It is important that we draw that distinction and that we are careful about what we say, particularly when it comes to legal proceedings that have taken place outside this House—and rightly independently of this House—and where people have entered a particular plea.

If individuals are concerned about the quality of the legal advice they received at the time, there are routes for them to challenge that, such as the Legal Services Commission. If evidence comes to light that materially affects the conviction, that would also need to be looked at by Post Office Ltd as the prosecuting authority, as I have said. However, that is not where we are yet. We will of course remain open minded about that as the review process continues. So far, only four of the 47 cases have been looked at in detail. Therefore, we await to see what more will come out of the review.

Oral Answers to Questions

Debate between Jo Swinson and Philip Hollobone

Thursday 18th April 2013 Commons Chamber

[Jo Swinson]

Clearly, we want to increase the number of organisations signed up to “Think, Act, Report”, but we have also been focusing on those that employ the largest number of workers. The current figures show that more than 80 organisations and large-scale employers have signed up, which represents 1.3 million employees. I think that is a key figure, because 1.3 million employees are now protected by companies that are ensuring that they not only consider what they need to do to tackle the pay gap, but act on it and, importantly, through transparency, report on what they have been doing.

[Mr Philip Hollobone (Kettering) (Con)]

Section 78 of the Equality Act 2010 requires businesses that employ more than 250 people to measure and publish their gender pay gap figures. Will the Government implement that and, if not, what is the problem with doing so?

[Jo Swinson]

When the Government launched the “Think, Act, Report” initiative, we set out the fact that we believed it would be helpful if companies took a voluntary approach in pursuing this matter. Of course, we have not ruled out commencing that part of the 2010 Act at some future point, and we have also brought forward legislation—this measure is set out in the Enterprise and Regulatory Reform Bill—that will force organisations found guilty of breaching equal pay laws to conduct equal pay audits. I think that there is a clear message to be sent to employers: they should get their house in order on equal pay, or the equal pay audits will be coming down the track.

Economy (North-East)

Debate between Jo Swinson and Philip Hollobone

Tuesday 13th November 2012 Westminster Hall

[Jo Swinson]

I have a lot to get through if I am to answer as many points as possible, so I hope the hon. Lady will understand why I want to continue.

The right hon. Gentleman is absolutely right that the partnership between the private and public sectors is important. That is why we are developing an industrial strategy to make sure that businesses, investors and the public can have more clarity about the long-term direction. We are planning for the long term, but initially focusing on five areas: sectors, technologies, skills, access to finance and procurement. The hon. Member for Newcastle upon Tyne North (Catherine McKinnell) mentioned the Heseltine review, which has made 89 recommendations, to which the Government will respond in due course. However, the industrial strategy and the approach the Government are taking go with grain of the overall approach in the Heseltine review.

The regional growth fund has been able to invest a significant amount as part of the partnership between the private and public sectors. It has invested £2.4 billion, of which £280 million has been offered to projects across the north-east. There was some criticism of the speed with which the money has gone out, but it is obviously important that the Government do due diligence, and I think people would recognise that. It is also important to note that certainty of public funding sometimes means that a project can go ahead once the funding has been allocated, even if the funding does not come until a later phase of the project. In addition, there is the Growing Places fund, which will help to unblock stalled local infrastructure projects. North East LEP has received £25 million from it, and Tees Valley has received £8.5 million. It is also important to remember that, in the north of England, £1 billion of European regional development funds were awarded in the most recent finance round.

The right hon. Gentleman and others raised the important issue of youth unemployment, and we all share the absolute desire to make sure that a generation is not left behind. We know the long-term scarring effect that unemployment has when young people are unemployed. I know the right hon. Gentleman has been in discussions with my right hon. Friend the Deputy Prime Minister, and I know the work he has been doing on the issue. He makes various critiques of the Government’s approach in the youth contract, but it is important to recognise that, for example, enabling young people to take up work experience placements without losing access to benefits, as happened under the previous Labour Government, means that people can get out of the trap of not having experience and therefore not being able to get job, but not being able to get the experience because they would lose their benefits. That is an important part of the youth contract. Although the right hon. Gentleman is rather dismissive of wage subsidies, they will deliver private sector, lasting jobs, in contrast to the schemes that were in place under the Labour Government.

Of course, not all apprenticeships are for young people, but 51% of them were last year, and they are an important part of the solution to youth unemployment. We are not complacent, and we recognise that there is a lot more to be done. Overall youth unemployment figures are coming down, which is good news, but we are absolutely committed to keeping a very close eye on the issue.

The right hon. Gentleman’s fifth point was about finance for innovation. The Technology Strategy Board, and particularly the new network of Catapults—technology and innovation centres—are a really important part of how we can develop technologies for the future and grow our economy.

A wide range of points were made by other Members; I will not get to them all now, but I have made a note of them, and I will endeavour to write to Members about them. I would, however, like to mention the city deals, which my hon. Friend the Member for Stockton South (James Wharton) referred to. Obviously, the Newcastle city deal is excellent news for the city, and it will unlock £1 billion of extra investment and create 13,000 jobs; indeed, wave 2 could have benefits for other parts of the north-east.

I welcome the comments by the hon. Member for Blyth Valley (Mr Campbell) about the fantastic innovation going on at Narec. I appreciate he is unhappy with the 14 hectares of enterprise zone, but he has campaigned hard to get the enterprise zone, and I am glad that he at least acknowledged that the Treasury listened and granted the request.

The hon. Member for Hartlepool (Mr Wright) talked about how we can make sure we get engineering skills, and the employee-owner pilots, which are putting funds in the hands of local employers to work out how best to get the skills they need, are an important part of that. I also welcomed the hon. Gentleman’s comments about girls studying science. That is important, and the Inspiring the Future project, which I would encourage Members to become involved in, will help to build on the links between businesses and schools, and indeed the experience that Members of Parliament may be able to bring to schools.

I appreciate that I will not be able to get round to the rest of the points that have been made, but I welcome hon. Members’ contributions.

[Mr Philip Hollobone (in the Chair)]

I thank all those who have taken part in the debate, and I would ask them to leave quickly and quietly if they are not staying for the new debate.