Technical and Further Education Bill

Debate between Kelvin Hopkins and Simon Hoare

Money resolution: House of Commons & 2nd reading: House of Commons & Programme motion: House of Commons & Ways and Means resolution: House of Commons
Monday 14th November 2016 Commons Chamber

[Kelvin Hopkins]

There is another story, which may not be true, about what happened when incorporation was introduced in 1993. When the legislation was going through, the then Education Secretary was asked what was going to happen to sixth-form colleges and he said, “Oh, shall we put them in the FE sector?” It was a last-minute thought just to drop them into that sector. Sixth-form colleges are really schools and had they stayed with the local education authorities, we would by now have a lot more of them because LEAs would never have given away all the sixth-forms from their schools to create new sixth-form colleges because they were a different, independent sector.

Unfortunately, LEAs, and indeed, councillors are possessive about their institutions and do not want to give them away. I have experience of that, because when I was chair of governors of the Luton College of Higher Education, we had a battle royal to get that college into the higher education sector—out of LEA control and into the Polytechnics and Colleges Funding Council. The chief education officer threatened to sack the college principal for pursuing that avenue, and I had to intervene to say to the CEO publicly, “If you sack the principal, you will have me to contend with and I will fight you all the way.” He backed off and we got what became the University of Luton and, subsequently, the University of Bedfordshire. LEAs are, understandably, possessive and they are not going to give away their sixth-forms to move towards sixth-form colleges. Had they done that, our education system would be much better, but that is another story.

[Simon Hoare (North Dorset) (Con)]

The hon. Gentleman makes an important point about people’s understanding or experience of the FE sector, but may I just invite him to reflect on the statement he made a moment or so ago? He said that the Conservative Benches are full of posh boys and girls who went to posh schools. A good four or five of us sitting on the Parliamentary Private Secretary Bench this afternoon paid no fees at all for our education and are products of state school, hard work and good teachers.

[Kelvin Hopkins]

I thank the hon. gentleman for his intervention, but I think the majority of Members, probably on both sides of this House, have not gone through the further education sector. A small number have, and they understand this, but a high proportion are not very familiar with FE and the vast contribution it makes to our society, in all sorts of ways.

National Insurance Contributions (Rate Ceilings) Bill

Debate between Kelvin Hopkins and Simon Hoare

Tuesday 15th September 2015 Commons Chamber

[Kelvin Hopkins]

I thank the hon. Gentleman for that intervention, but the fact is that successive Governments have failed to ensure that the rich pay their taxes properly. We have a tax gap of £120 billion a year. The fact that fewer people might fiddle their finances is not an argument for reducing the top rate of tax. We ought to have a proper regime for enforcing tax payment by those who get away with it: the corporates and the billionaires who manage to avoid and evade tax on a massive scale. If we collected only a third of what is fiddled every year, we would have another £40 billion a year to spend. I think that we have failed on that because all Governments have opted for a light touch on the rich. That is the truth.

[Simon Hoare]

The hon. Gentleman obviously has the inside track on the voice of the City—he has referenced lunches he has had in the square mile—so could he illume the House on what the City’s view is on the new policies of his right hon. Friends who now occupy the Opposition Front Bench?

[Kelvin Hopkins]

I must say that I have not had lunch in the City recently. Indeed, my contacts with City people have not been of the highest order since 1998. I once had lunch with the Governor of the Bank of England, shortly after being elected, and very enjoyable it was too. That was when “steady Eddie” was in charge—he was a splendid Governor and I am sorry that he is no longer with us.

I believe that there are ways of ensuring that we collect the taxes that are due from the rich. Personally, I believe that I should pay more income tax, along with everyone else on my kind of salary—I earn £74,000 a year. Indeed, the majority of the population have said that they would be happy to pay a little more tax in order to help our health service, which is still seriously underfunded.

I believe that national insurance contributions set at a modest level are an important part of our tax and revenue-colleting system. It gives us all a sense of collectivity, which I think is right. We call that the contributory principle. It means that we have a sense of duty in paying taxes as well as a sense of entitlement in receiving what they pay for. I agree with my hon. Friend the Member for Bishop Auckland, who is no longer in her place, on the upper earnings limits.

VAT is a regressive tax. It was noticeable that Gordon Brown, when Prime Minister, cut VAT from 17.5% to 15%, which boosted demand at the moment that was needed and, together with a substantial depreciation of sterling, helped to keep the economy relatively stronger than some other economies. We have since survived, but I think that we are now making a mistake in allowing sterling to appreciate. It has moderated a bit in recent weeks, but it is still far too high, and manufacturing is suffering as a result.

I understand that the Opposition are going to acquiesce in what the Government are proposing today, but I agree entirely with the view put forward by my hon. Friend the Member for Bishop Auckland. I look forward to my party coming into government next time around with our new leader committed to ensuring that the rich, the corporates and those who have been getting away with it for years pay their taxes so that we can build a decent society on the revenues that they should provide.