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House of Commons

Thursday 5 December 2013

The House met at half-past Nine o’clock


[Mr Speaker in the Chair]

Oral Answers to Questions

Business, Innovation and Skills

The Secretary of State was asked—

Retail Sector

1. Ann Coffey (Stockport) (Lab): What recent meetings he has had with representatives of the retail sector. [901443]

The Minister of State, Department for Business, Innovation and Skills (Michael Fallon): I regularly meet representatives of the retail sector. I attend the retail policy forum, which meets three times a year, and I recently spoke at the Association of Convenience Stores’ heart of the community conference. As part of small business Saturday, I will visit independent shops in Westerham this weekend and I encourage all colleagues to support this hugely important campaign.

Ann Coffey: The rise in e-commerce and online sales is changing our shopping habits and impacting on our high streets. What more can the Minister do to encourage co-operation between big retailers, independent retailers and councils to take advantage of the opportunities offered by developing technology to transform our high streets into exciting community spaces for the 21st century?

Michael Fallon: I agree with the hon. Lady about the huge opportunity here. We are keen to help small businesses in particular to trade online. With the help of my Department, Go ON UK is piloting a programme to help to provide businesses with the skills to transact online, including using mobile technologies to exploit the increasing use of smartphones in e-commerce. That will roll out nationally next spring. The Technology Strategy Board carried out a successful digital high street pilot last year in Hereford and it is currently exploring how to build on that.

Mr James Gray (North Wiltshire) (Con): I, too, will be out and about in Calne, Royal Wotton Bassett and Malmesbury on small business Saturday, supporting our small retailers. Does the Minister agree that one of the biggest burdens I will hear about as I wander around will be the overwhelming burden of business rates on small businesses? What action can he take now to lessen that appalling burden?

Michael Fallon: My hon. Friend will know that we have doubled small business rate relief and have already extended it until 2014. On our plans after that, I must ask him to be patient a little longer.

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Stephen Mosley (City of Chester) (Con): Chester has been a fantastic shopping centre for centuries, but it faces increased competition from online shopping and out-of-town shopping centres. Does my right hon. Friend agree that these days we have to make shopping an entertainment experience, with cafés, bars and on-street entertainment to drag people back on to the high street?

Michael Fallon: Yes, I do agree. As the hon. Member for Stockport (Ann Coffey) put it, we have to make high streets community spaces again that are not simply for transactional shopping. There are a number of ways in which high streets can respond to the challenge of e-commerce and the Government are here to help.

Small Business Sector

2. Mr Henry Bellingham (North West Norfolk) (Con): If he will meet representatives of the small business sector to discuss the removal of unnecessary regulation. [901444]

The Minister for Skills and Enterprise (Matthew Hancock): I am very happy to meet small business representatives. We actively listen to feedback on regulation, including through the red tape challenge, but we do not just meet representatives—we act. For instance, we are freeing about 1 million self-employed people from health and safety law where their work poses no harm to others.

Mr Bellingham: I am grateful to the Minister for that reply. Is he aware that King’s Lynn and west Norfolk has an incredibly diverse economy? Experts tell me that since 2010, 1,000 new small businesses have been set up. Will he tell the House that he is as determined as ever to go on championing the cause of removing unnecessary burdens on business, and does he agree that small businesses will be the major exporters of the future? What will he be doing on Saturday to champion wealth creation and enterprise?

Matthew Hancock: Like my hon. Friend and many Members across the House, I will be celebrating small business Saturday this weekend. We are constantly vigilant and listening to small businesses to make sure that their task is made easier and the burdens we place on them made smaller.

Mr Barry Sheerman (Huddersfield) (Lab/Co-op): If the Minister is in listening mode and cares so much about regulation, will he look very carefully at the threat to crowdfunding, which is a real alternative for small business and community group start-ups? The Financial Conduct Authority is conducting an inquiry and consultation. If we get this wrong and implement inappropriate regulation, it will kill something wonderful that can regenerate communities and business.

Matthew Hancock: I agree with every word that the hon. Gentleman says. We are supporting crowdfunding on financial terms, not least through the new business bank, but we are also making sure that it can operate in a high-quality framework. The fact that there will be a regulatory framework around crowd-sourced funding

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has been welcomed by the sector. We have to get it right, and I will meet Martin Wheatley of the FCA to make sure that we get the details right.

Mr David Nuttall (Bury North) (Con): Some of the most burdensome regulations on manufacturing companies in my constituency are the registration, evaluation and authorisation of chemicals regulations imposed by Brussels. Will the Minister undertake to work across Government to do all he can to reduce the burden of these REACH regulations?

Matthew Hancock: Yes, the REACH regulations are among the 30 recently highlighted by the EU business taskforce. As my hon. Friend knows, we are working hard to reduce the burden of those regulations.

Small Businesses

3. Miss Anne McIntosh (Thirsk and Malton) (Con): What steps he is taking to support small businesses. [901445]

4. John Howell (Henley) (Con): What steps he is taking to support small businesses. [901446]

7. Jason McCartney (Colne Valley) (Con): What steps he is taking to support small businesses. [901451]

The Secretary of State for Business, Innovation and Skills (Vince Cable): We are doing more than ever to support small business. More than 10,000 StartUp loans have been drawn down since the scheme’s launch in September 2012. Over the past year, UK Trade & Investment has helped 32,000 businesses to export, the growth accelerator scheme has supported 10,000 small businesses and the regional growth fund has helped a further 3,200.

Miss McIntosh: I shall support small businesses in Helmsley this Saturday. Will the Secretary of State use his good offices to encourage the local enterprise partnership for North Yorkshire to make funds available to improve the A64 corridor, because its safety record and its terrible congestion are holding back growth for all businesses along its route?

Vince Cable: I will certainly make sure that the local enterprise partnership is aware of my hon. Friend’s priorities. In relation to small business Saturday, I praise the activities that she is undertaking in Helmsley. That council is one of 25 that will offer free parking that day, and I hope that a few more will sign up to that in the next 48 hours. I shall be in Twickenham to support my small businesses.

John Howell: I will support small business Saturday by literally putting small businesses in my constituency on the map on my website. What will the Secretary of State do to improve access to finance and mentoring to ensure that Oxfordshire businesses continue to thrive?

Vince Cable: I think we all agree that small business Saturday is a positive, cross-party initiative, and hon. Members on both sides of the House will be out there backing it. I praise the originality of my hon. Friend’s approach.

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On small business funding—I am sure this issue will be raised many times—I have drawn attention to the StartUp loans scheme that is helping large numbers of start-ups to get going, and the business bank is supporting both new and original forms of funding, as well as a rapid expansion of guarantees for existing companies.

Jason McCartney: I, too, will support small business Saturday, as I have done in the build-up to this weekend. Will my right hon. Friend join me in congratulating the Holmfirth Hullabaloo and Totally Locally Slaithwaite campaigns, which have engaged local shopkeepers with innovative reward and prize schemes to encourage local communities to shop locally?

Vince Cable: I do not know what those exciting schemes involve, but they sound fun. The basic underlying theme is that we are all being urged to support our local shops and to shop locally. I am sure that is a very good theme around which we can all unite.

Mr Andy Slaughter (Hammersmith) (Lab): Across my constituency, small businesses are being forced out by big developers who want to redevelop them for luxury flats. The local council is supporting that, and in the case of Shepherd’s Bush market, has even issued compulsory purchase orders to drive out small businesses. The Tory party will always prefer big business over small business. What will the Secretary of State do about this situation?

Vince Cable: This distinction between big business and small business is seriously unhelpful—most big businesses have supply chains—and we should support both.

Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op): Many small and medium-sized enterprises in my constituency—including in Shoreditch, which the Prime Minister calls tech city—are keen to bid for Government contracts, thereby growing, employing more people and becoming larger businesses. What is the Department doing to support them, because they face many hurdles in trying to become Government contractors?

Vince Cable: The hon. Lady will find that the trend in Government procurement is very much on track to meet the 25% target for small business. It is much more difficult with devolved bodies, such as health authorities and local government, but we are working on that with the relevant Departments.

Mr David Hanson (Delyn) (Lab): Less than seven days ago, the Secretary of State said to a small business forum in Bath that solar energy

“had a part to play in powering the nation”.

Will he tell me whether Government is actually joined up, given that small businesses in my constituency are complaining to me about the cuts announced yesterday?

Vince Cable: Enormous numbers of homes use solar power. The major technological advances in that area are driving down costs. We need to see that happen across renewable energy. The Government of course had to cut the subsidy when it became clear that the industry was more sustainable.

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Toby Perkins (Chesterfield) (Lab): Without wishing to show off, I am going to 20 small businesses on Saturday across Chesterfield and Staveley—my wife is bringing her purse.

The urgency of small business Saturday seems all the more serious after a recent report by the Association of Convenience Stores which shows that 55% of its owner members earn less than the minimum wage on an hourly basis. Is the Secretary of State really telling those people that further cuts to corporation tax for big companies are a higher priority than cutting their business rates, which are the most expensive commercial property tax in Europe?

Vince Cable: I am very sympathetic to the business groups that have consistently made representations over the past few months to say that business rates are a major burden. This Department has certainly made it clear that we regard it as a major issue. The hon. Gentleman will have to wait for an hour or so to find out what the Chancellor is doing about it.

Small Business Regulation

5. Mr Philip Hollobone (Kettering) (Con): How many regulations affecting small businesses the Government have (a) introduced and (b) removed since May 2010. [901448]

The Minister of State, Department for Business, Innovation and Skills (Michael Fallon): The statement of new regulation, which we publish every six months, shows that since January 2011 we have introduced 57 regulatory measures, 135 deregulatory measures and 108 measures that have no net cost to business, many of which are deregulatory. That is saving British businesses nearly £1 billion a year. Small businesses, which account for 99% of all businesses, benefit in particular from the one in, one out rule—it is now the one in, two out rule—that drives this deregulation.

Mr Hollobone: I congratulate the Minister on his efforts to secure an exemption for micro-businesses from specific EU regulations. That will help small businesses in Kettering and across the country. What further efforts does he intend to make to secure more exemptions from harsh EU rules?

Michael Fallon: The EU business taskforce, which I chair, identified 30 regulations that should be repealed. We continue to press the Commission to lighten the rules for small businesses and to exempt the very smallest businesses altogether.

Apprenticeship Minimum Wage

6. Graeme Morrice (Livingston) (Lab): What recent estimate he has made of the number of apprentices being paid below the apprenticeship minimum wage. [901449]

The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Jo Swinson): The Government have overseen one of the most successful expansions of apprenticeships, with about 1.5 million apprenticeship starts since 2010. However, we are concerned that the level of non-compliance with national minimum wage rules, which the 2012 apprenticeships survey shows to

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be 27%, remains too high. The Government have zero tolerance for employers who break the law. That is why we have introduced a range of enhanced enforcement measures to crack down on such rogue employers.

Graeme Morrice: I thank the Minister for her answer. It is certainly worrying that the proportion of apprentices who are not receiving the apprenticeship minimum wage has increased and that one in four apprentices do not receive it. What firm and decisive action is she taking to clamp down on the rising non-compliance of employers with the apprenticeship minimum wage, especially given that the number of young people aged 16 to 18 who are starting apprenticeships has fallen?

Jo Swinson: The hon. Gentleman raises an issue that the Government are concerned about and are acting on. From 1 July, Her Majesty’s Revenue and Customs has prioritised complaints about the apprenticeship minimum wage to ensure that it brings proper enforcement against employers who are not paying it. Further, we have made it much easier to name and shame employers who do not pay the minimum wage. We have also announced that we will increase the maximum penalty fine to £20,000. That tough programme of enforcement action should help to ensure that businesses pay their workers properly. That is what the public expect and it is what most responsible businesses already do.

Robert Halfon (Harlow) (Con): Is my hon. Friend aware that the number of apprenticeships in my constituency of Harlow has increased by more than 80% in the past year? Will she congratulate the Harlow and district chamber of commerce and the businesses who are hiring apprentices and paying them proper apprenticeship wages? Will she also welcome the new university technical school, which is, in essence, a pre-apprentice school that will provide young people with skills?

Jo Swinson: I happily offer those congratulations, and I add to them my congratulations to my hon. Friend for the unfailing way in which he has championed apprenticeships, not just in his constituency, but in this House by encouraging many Members to take on apprentices in their offices. It is important to ensure that young people have such opportunities. That is why the Government have invested significantly in expanding apprenticeships so much.

Mr Ronnie Campbell (Blyth Valley) (Lab): Does the Minister accept that companies such as Wetherspoon, which will open shortly in my constituency, are taking on young people on zero-hours contracts?

Jo Swinson: The hon. Gentleman is right that many workers are employed on zero-hours contracts. In some cases those can work well, but in other cases there are concerns about abuse. That is why the Department has undertaken a fact-finding exercise, and we will shortly launch a consultation on what action can be taken to ensure that such contracts are not abused.


8. Nigel Mills (Amber Valley) (Con): What steps he is taking to encourage more people to become engineers. [901452]

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17. Neil Carmichael (Stroud) (Con): What steps he is taking to promote engineering as a career. [901462]

The Minister for Universities and Science (Mr David Willetts): In September the Government announced a £400 million boost for science, technology, engineering and maths teaching. Last month we launched the first annual Tomorrow’s Engineers week, during which the Government worked with more than 70 partners. Our recently published Perkins review of engineering skills calls for action from employers, educators and the profession to work with us to inspire young people to become engineers.

Nigel Mills: Does the Minister agree with the importance of getting local engineering employers to work closely with skills providers to inspire young people to go into engineering, and will he join me in welcoming the soon-to-open Heanor studio college, which will do exactly that?

Mr Willetts: We strongly support such initiatives, which are absolutely what is required to ensure that employers get the skilled engineers they need.

Neil Carmichael: Now that the Government’s economic plan is delivering the rebalanced economy we need, we also need engineers, as the Minister just said. Does he agree that one way forward is to encourage engineering in schools, and to ensure that it is considered a protected profession?

Mr Willetts: I certainly agree that we need to encourage engineering in schools. “Engineer” is not a restricted term, but we support professional titles such as “chartered engineer” or “engineering technician”, which are regulated, and we aim to register 100,000 apprenticeships with EngTech status by 2018.

Lilian Greenwood (Nottingham South) (Lab): Does the Minister agree that investing in fundamental research is vital to inspire the next generation of scientists and engineers and to create conditions for the serendipitous discoveries of the future?

Mr Willetts: I completely agree with the hon. Lady, which is why the Government support fundamental research. Only last week I went to the launch of £250 million of public money for centres of doctoral training run by the Engineering and Physical Sciences Research Council.

Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op): One of the biggest engineering projects this country has ever seen will be High Speed 2. What specific steps is the Department for Business, Innovation and Skills taking in conjunction with the Department for Transport to ensure that engineering opportunities are available to businesses throughout the entire country, not just firms adjacent to the route?

Mr Willetts: We are already working with the current largest infrastructure plan, Crossrail, to ensure that skills are available and that we take the opportunity to build up skills in crucial techniques such as tunnelling. We will take the same approach to HS2.

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Mr Mark Spencer (Sherwood) (Con): I recently visited Fairfield Control Systems in my constituency, which is a small engineering company responsible not only for moving the roof at Wimbledon, but for the Division bells in the House of Commons. One of its main concerns was the Government’s encouragement of STEM subjects by the Department for Education. Has the Minister spoken with that Department about how we can encourage the teaching of STEM subjects within the school system?

Mr Willetts: STEMnet ambassadors are doing a fantastic job of going to schools to encourage young people to study those subjects. There is a surge in the number of young people taking A-levels in subjects such as maths and physics, which are often a requirement for going on to engineering.

IT Skills

9. Harriett Baldwin (West Worcestershire) (Con): What assessment he has made of the ability of businesses to recruit staff with appropriate IT skills. [901453]

The Minister for Universities and Science (Mr David Willetts): Our recent information economy strategy shows that employers find it hard to get people with the right IT skills, yet there is also relatively high unemployment among computer science graduates. That is why I recently convened a round-table with vice-chancellors and employers to tackle that mismatch. I know that issue is vital in the Malvern cyber-valley that my hon. Friend does so much to support.

Harriett Baldwin: Indeed, cyber-security IT skills are vital for the online world. Will the Minister welcome the initiative by private sector firms in my constituency to set up a cyber-skills training centre, and may I invite him, once again, to visit?

Mr Willetts: I do support that initiative and I hope it will be possible to visit my hon. Friend’s constituency, because I know how much she does to support the Malvern cluster, which will soon be rivalling the Cambridge cluster and tech city.

Offshore Wind Turbines

10. Mr Charles Kennedy (Ross, Skye and Lochaber) (LD): What assessment he has made of the potential opportunities for manufacturers in onshore construction of offshore wind turbines. [901454]

The Secretary of State for Business, Innovation and Skills (Vince Cable): In August the Government launched their offshore wind industrial strategy, which aims to build a thriving UK supply chain. Currently, there are 1,375 offshore wind turbines operational or under construction and, on average, half of the capital value of those projects comes from other parts of the supply chain in which the UK has leading expertise. Yesterday’s announcement on the electricity market reform makes clear the Government’s commitment to developing offshore wind in the UK.

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Mr Kennedy: I thank my right hon. Friend for that detailed reply, and I too welcome yesterday’s news, not least given the market uncertainty recently when RWE was forced, for geological reasons, to pull out of the proposed £4 billion north Devon offshore wind farm. The Minister of State, Department for Business, Innovation and Skills, the right hon. Member for Sevenoaks (Michael Fallon), knows that I have raised the potential of the Kishorn site on the west coast of my constituency previously and yesterday’s news will give added confidence to those who are looking at the potential there, but what forms of further support might such a site be able to attract? Given the weather today, I cannot repeat my invitation to my right hon. Friend to visit, but I hope to do so in future, more clement times.

Vince Cable: I would be delighted to visit the site, and the mountains, in my right hon. Friend’s constituency. The site to which he refers is extraordinary and in its prime, in the North sea oil boom, it built the largest mobile structure on the planet at 600,000 tonnes. It has great potential, and if this supply chain development takes place, 2,500 new jobs will be created. We want to do everything we can to make that possible, and the announcement yesterday certainly helps. He will know that the Catapult in Glasgow is working on the technology behind offshore wind developments, and we will do everything we possibly can to make sure that Kishorn and other UK ports develop on the back of that rapidly growing industry.

Barry Gardiner (Brent North) (Lab): The Secretary of State speaks of a rapidly growing industry, but the commitment by the Government three years ago was to 40GW of offshore by 2020. The commitment yesterday was for 10GW. Why has that commitment shrunk to 25% of what it was?

Vince Cable: The hon. Gentleman seems to have forgotten that Britain has by far the largest offshore wind industry in the world, and under the guarantees that we gave yesterday it now has the incentive to expand—and will do so, both onshore through the supply chain and offshore in the wind farms.

Business Bank

11. Stephen Timms (East Ham) (Lab): What progress he has made in setting up a business bank operating regionally and locally. [901455]

The Secretary of State for Business, Innovation and Skills (Vince Cable): The British business bank is being established to increase the supply of capital to smaller businesses throughout the UK, resulting in increased competition in the banking sector from alternative lenders, such as peer-to-peer lenders and challenger banks. It is being established with £1 billion of new capital, with another £250 million announced on Monday for new small business programmes.

Stephen Timms: The Secretary of State will know that Bank of England figures show that small business lending fell by £1.5 billion over the past quarter. Can he reassure us that this new institution will be more than simply rebranding the previous schemes that have proved so unsuccessful?

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Vince Cable: The right hon. Gentleman is right that there is a negative trend in net lending. It has been sustained and is worrying, although gross lending is now beginning to recover quite rapidly. The interventions of the business bank will do two things. They will support existing schemes—in fact the take-up under the guarantee schemes has risen by 85% over the last year since they came under the business bank—and they will provide new funding. He will know that, under agreements we have already reached, new debt funds have been supported, and those will find their way into support for small businesses in his and other constituencies.

John Stevenson (Carlisle) (Con): In north Cumbria, we already have the very successful Cumberland building society. Does the Secretary of State agree that such societies should be supported and, most importantly, smaller financial organisations should not be overburdened by regulation?

Vince Cable: The hon. Gentleman is right that the building societies have a crucial role, primarily of course in mortgage lending, which is their traditional business, but some of them are moving into small business lending and that is very welcome. One of the reasons why the Chancellor and I did not support the recommendations of the parliamentary commission on leverage ratios was to protect building societies and enable them to expand.

Mr Adrian Bailey (West Bromwich West) (Lab/Co-op): Given the failure of successive well-intentioned but ineffective Government schemes to boost lending for small businesses, including £78 million of unallocated resources for the funding for lending scheme, will the Secretary of State outline what extra measures he will take to ensure that the business bank succeeds where other schemes have failed?

Vince Cable: The bank is already succeeding. As I said to the right hon. Member for East Ham (Stephen Timms), there has been a very big increase in the lending being made available under the existing schemes and a big growth in equity-related activity. I think he will find that, as the business bank moves forward, we will use the £1.25 billion of new capital from the Treasury to do exactly what it was designed to achieve. I am very positive about the bank’s future.

Stella Creasy (Walthamstow) (Lab/Co-op): The Secretary of State admits that there have been problems with the Government’s plans. One area of lending at a local level that has been picking up the pieces and expanding is payday lending to businesses. Does the Secretary of State now accept that his Department was wrong to oppose capping the cost of credit, given that businesses have been ripped off by legal loan sharks as much as consumers?

Vince Cable: The evidence from Bristol university among others, which we support, suggested genuine potential problems with a cap on interest rates, but we have been persuaded, on the balance of evidence, that we should do it. There are good experiences, in places such as Florida in the United States, that we will now seek to apply in the UK. I congratulate the hon. Lady and others on their persistent campaigning on this subject. I think we have now achieved a good outcome.

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Workplace Insecurity

12. John Cryer (Leyton and Wanstead) (Lab): If his Department will make an assessment of the main causes of insecurity in the workplace. [901456]

The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Jo Swinson): The 2011 workplace employment relations study found that employees’ feelings of job insecurity were related to three factors: whether their workplace had been subject to any recent redundancies; the perception among managers of the effect of the recent recession; and the number of changes at work experienced by employees.

John Cryer: An increasing proportion of the work force is subject to zero-hours contracts. Does the Minister think that they have anything to do with job insecurity? Do they contribute to insecurity or do they contribute to security?

Jo Swinson: We have of course been looking at these issues and there is a range of evidence out there. The hon. Gentleman might be interested in the survey published last week by the Chartered Institute of Personnel and Development, which found there was no difference in the level of job security experienced by zero-hours workers compared with the average employee. We have looked at a range of problems that have been identified, such as exclusivity, the information available and the uncertainty over earnings. We will be publishing a consultation shortly.

Sir Tony Baldry (Banbury) (Con): Is not the greatest cause of insecurity for those in work the nightmare prospect of the shadow Chancellor ever getting anywhere near the door of No. 11 Downing street, given that he has been proved wrong in every single economic prediction he has made?

Jo Swinson: My hon. Friend makes an important and powerful point. We want to ensure job security by having falling unemployment and a growing economy. That is exactly what the Government are delivering. [Interruption.]

Mr Speaker: Order. It is a bit unsatisfactory if one Minister is heckling another. You yourself, Mr Hancock, are undergoing an apprenticeship to become a statesman, but I think there are some years to run.

20. [901465] Alex Cunningham (Stockton North) (Lab): Hundreds of workers across north-east England joined the millions across the country in fearing for their future when npower decided last week to export hundreds of jobs to India and force Thornaby-based workers to travel to a new location nearly an hour away. Does the Minister now understand why half the working population fear for their jobs and feel insecure? What is she going to do about it?

Jo Swinson: The hon. Gentleman understandably raises a constituency case, and I am sure the whole House feels for people in that position. Insecurity in that kind of circumstance, where jobs are lost or people fear for their jobs, is something we all understand. The best way to deliver the security that everybody wants to

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see for their constituents in work is to continue the recovery that the Government have started, ensure that we keep interest rates low, have a thriving economy and support the small businesses up and down the country that are the engine of growth. That is what the Government’s plan for recovery is delivering.

Ian Murray (Edinburgh South) (Lab): One of the main contributors to the rise in the number of people feeling insecure at work is their inability to seek justice through the employment tribunals system. Data announced last week by solicitors Pinsent Masons showed that in some regions the number of employment tribunal claims had fallen by almost 80% since the introduction of fees, despite the Government’s impact assessment measuring it at just 20%. In the light of these figures, does the Minister agree that the level of fees is fundamentally restricting access to justice, and does she agree with the Scottish Women’s Convention that fees are disproportionately affecting women and they are discriminated against in the workplace?

Jo Swinson: The hon. Gentleman needs to be careful with his use of statistics, because we have introduced a range of changes to the tribunals system aimed at getting employers and employees to resolve disputes outside the tribunals system, which I would have thought everybody would welcome, given that tribunals are costly in terms of time, stress and money for everybody involved on both sides of the dispute. Our proposals, which we are implementing, on early conciliation and making it easier for disputes to be resolved should be working to reduce the number of tribunals, but the Ministry of Justice has committed to keeping these issues under review, particularly the equality aspects and whether there is any disproportionate effect on one particular group.

Higher Education

14. Caroline Lucas (Brighton, Pavilion) (Green): If he will make it his policy to increase investment in higher education. [901458]

The Minister for Universities and Science (Mr David Willetts): That is already our policy. Higher education is vital to our future productivity and economic growth. That is why we have reformed university finance and protected research spending. As a result of our reforms, total university income for teaching will rise from £7.2 billion in 2011-12 to £9.1 billion in 2014-15.

Caroline Lucas: The Minister will know that spending on higher education remains lower than the OECD average, yet higher education makes a huge contribution to the national economy, as I know from the two excellent universities in Brighton and Hove, so will he do even more to address this gap please? Will he also make an assessment of the University and College Union proposal to fund our knowledge economy via an increase in corporation tax for the richest 4% of our corporations, rather than by relying on tuition fees that unfairly fixate on the individual benefit of students going to university?

Mr Willetts: We have a fair and sustainable way of financing higher education. It is right to expect graduates to pay back the cost of their higher education if they are earning more than £21,000. That has enabled us to see more students going to university and increases in

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funding for teaching at universities, even while we have been tackling the budget deficit we inherited from the previous Government.

Mr Liam Byrne (Birmingham, Hodge Hill) (Lab): As you know, Mr Speaker, while the Minister was batting for Britain in Kazakhstan last week, the National Audit Office was battering his handling of the student loans system. We look forward to the hearings at the Public Accounts Committee, but in the meantime would he mind telling the House how late he discovered that students at private higher education institutions were soaking up public subsidies at such a rate that there was an overspend of hundreds of millions of pounds? How did he lose control so spectacularly?

Mr Willetts: Let us be clear: these students are studying for HNCs and HNDs, which are all legitimate and valuable qualifications. Whereas under the right hon. Gentleman’s Government there was no control whatsoever of the designation of alternative providers, we have introduced controls. The number of students going to alternative providers has increased dramatically, and in order to maintain budgetary controls, we have introduced further limits on the numbers, but these are worthwhile courses that we should support.

Zero-hours Contracts

15. Julie Elliott (Sunderland Central) (Lab): What progress he has made on his review of zero-hours contracts. [901459]

The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Jo Swinson): During the summer, the Department undertook a fact-finding exercise to explore how these contracts are used and to identify the issues involved. We found that this type of contract worked well in some circumstances, but could be open to abuse. As a result, we have committed to publishing a consultation seeking views on zero-hours contracts and proposals to address the concerns raised. It will be published shortly.

Julie Elliott: Does the Minister accept that job insecurity has nearly doubled since 2010 and will she support Labour’s policy, which would stop zero-hours contracts that require workers to work exclusively for one business and end the misuse of zero-hours contracts where employees are, in practice, working regular hours over a sustained period?

Jo Swinson: I commend the hon. Lady for her consistency on his issue and for raising this concern on behalf of her constituents and others. Exclusivity was one of the issues we found in the fact-finding exercise over the summer to be of real concern, so that will be one of the issues that we will look at further in the consultation. We will also consider whether the transparency of information can be improved between employers and employees, so that there is a bit more certainty about what is expected on both sides of the contract. Used well, these contracts should provide flexibility in our labour market that can benefit both employers and employees.

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Andrew George (St Ives) (LD): I am grateful to the Minister for her written replies to my questions of 21 November, but will she ensure that the consultation addresses the parallel abuses where employees appear to be engaged as subcontractors as a way of masking the fact that they are being paid below the national minimum wage so that Her Majesty’s Revenue and Customs find it difficult to enforce the national minimum wage regulations?

Jo Swinson: My hon. Friend raises an issue about subcontractors. Clearly, we have robust enforcement processes in place for the national minimum wage, but I know that there are concerns in some industries about false self-employment as well. The Government are well aware of that. I hope that my hon. Friend will have just a little more patience before hearing more about what we might do about that. I definitely agree that we must ensure that people are not exploited in the labour market by being forced on to contracts that deny them their basic employment rights.

Small Businesses

16. Chi Onwurah (Newcastle upon Tyne Central) (Lab): What steps he is taking to support small businesses in Newcastle upon Tyne Central constituency. [901461]

The Minister for Skills and Enterprise (Matthew Hancock): The regional growth fund has allocated £40 million-worth of funding to Newcastle, more than £4.7 million has been offered to local businesses under the enterprise finance guarantee, and there have been 85 start-up loans, totalling £414,000. UK Trade & Investment has supported 292 small and medium-sized businesses in Newcastle to export.

Chi Onwurah: I will celebrate small business Saturday with retailers and traders in Newcastle’s vibrant High Bridge quarter and fantastic Grainger market. I am glad that so many Members are supporting this Labour initiative. Does the Minister agree that the best news I could give these hard-working businesses would be that he is going to support another of the shadow Business Secretary’s proposals—to cut business rates and then freeze them?

Matthew Hancock: I am delighted that the hon. Lady is supporting the cross-party small business Saturday—an idea that we got from the real Barack Obama—and I hear her intervention on business rates. I recall, however, that the Labour Government legislated to double them for the smallest businesses. Of course we listen to small businesses about the business rates, but not to those who wanted to put up taxes for them.

Machinery Directive (Disabled People)

18. Mrs Mary Glindon (North Tyneside) (Lab): If he will bring forward legislative proposals for regulations under the EU machinery directive to protect disabled people. [901463]

The Minister of State, Department for Business, Innovation and Skills (Michael Fallon): The EU machinery directive was transposed into UK legislation by the Supply of

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Machinery (Safety) Regulations 2008. These require products placed on the market to be safe when used for their intended use and are applicable to all relevant people. When used by persons with disabilities, the products must be just as safe for them as they are for able-bodied people.

Mrs Glindon: My disabled constituent Mr Harding, about whom I wrote to the Minister, has experienced recurring problems with his lift appliance, narrowly escaping injury on a number of occasions. Will the Minister say how Mr Harding and other disabled people can ever feel confident about using such equipment if it is not subject to specific legislation and if they have no recourse legally if an accident occurred?

Michael Fallon: I am sorry that Mr Terry Harding has had these difficulties over a long period with a number of products, but I am pleased that he has now been supplied with a new product—thanks, I think, to the intervention of the trading standards officers of North Tyneside council. I would be happy to discuss with the hon. Lady what further steps she thinks might be necessary and to look at the legislation again with her.


19. Simon Hughes (Bermondsey and Old Southwark) (LD): What steps he is taking to encourage exports. [901464]

The Minister for Skills and Enterprise (Matthew Hancock): The Government are significantly increasing support for exporters by helping more small businesses on overseas tradeshows. As the right hon. Gentleman will well know, the Prime Minister has just led the largest-ever trade mission to China, but missions to smaller countries across the world are also vital to our economic future.

Simon Hughes: We have heard a lot about small business Saturday, and we will all be doing our bit—yours truly included. Let me pick up the Minister’s commitment to ensuring that we do not do export drives only to China, India and the big countries, but particularly to small Commonwealth countries. I ask him to look at the potential for expanding our exports to the Caribbean countries, which feel that they have been slightly neglected in recent years.

Matthew Hancock: Absolutely. I agree that we need to expand our trade to the whole world, including the smaller Caribbean countries. I hope that the right hon. Gentleman will be here later this morning, when the Chancellor speaks.

Topical Questions

T1. [901468] Julian Sturdy (York Outer) (Con): If he will make a statement on his departmental responsibilities.

The Secretary of State for Business, Innovation and Skills (Vince Cable): My Department plays a key role in supporting the rebalancing of the economy through business to deliver growth while increasing skills and learning.

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Julian Sturdy: Portakabin, the world-class modular building company which is based in my constituency, has raised the possibility of supporting British exports through assistance with the translation of foreign regulations. What steps is the Secretary of State taking to deliver that vital service, which could break down barriers to trade and boost United Kingdom exports?

Vince Cable: I know that the Prime Minister visited the hon. Gentleman’s constituency recently and was very impressed by the Portakabin initiative. We have a concrete proposal for the establishment of a single market centre to help companies to negotiate overlapping regulations, particularly those relating to export controls. Translating regulations into a common language would make the process easier.

Mr Chuka Umunna (Streatham) (Lab): We had black Friday last week and cyber Monday at the beginning of this week, but, as many Members have already pointed out, the only day that really matters is small business Saturday. I am sure that you will be visiting small independent local shops in Buckingham this weekend, Mr Speaker. Will the Business Secretary join me in thanking the huge coalition—including organisations representing more than 1 million businesses, AmEx, the Ingenious Britain campaign, and, above all, the national campaign co-ordinator for small business Saturday, Michelle Ovens—that has made this day possible?

Vince Cable: I am happy to do that, and to acknowledge the collegiate, cross-party approach adopted by the hon. Gentleman. Small business Saturday is a very good initiative, and we should support and sustain it as much as we can.

Mr Umunna: The owners of the businesses to which I referred will have heard about the Tomlinson report, which accuses RBS of artificially distressing successful businesses in order to seize assets and make a profit. That is a very serious allegation about a bank that we, of course, own. Tomlinson says:

“Banks must ensure…that robust processes are in place to…avoid conflicts of interest.”

It has transpired, however, that he is an RBS customer, and that he has a complaint about the bank pending. Was the Secretary of State aware of that before he allowed the report to be published, and does it not call the report’s independence into question? It is not independent, is it?

Vince Cable: I was well aware that Mr Tomlinson was an RBS customer. He has been very public in his comments about the bank for a long time. He was appointed as entrepreneur in residence at my Department —we seem to have a team of entrepreneurs—and has contributed valuable insights. I have referred his report to the regulator and the bank. Crucially, his accusations are echoed in the report published by Sir Andrew Large, who was appointed by RBS.

There are serious problems in the banking system, and in RBS in particular. Those problems need to be investigated, and I think that Mr Tomlinson has performed a useful service in making them public.

T4. [901471] Andrew George (St Ives) (LD): I am grateful to my hon. Friend the Under-Secretary of State for her earlier reply in respect of the review of

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zero-hours contracts, but does she agree that driving out shady employment practices and improving wages, including the national minimum wage, would have the additional advantage of reducing the welfare benefits budget?

The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Jo Swinson): My hon. Friend is right. That is one of the reasons why my right hon. Friend the Business Secretary asked the Low Pay Commission to identify the conditions that are necessary for an increase in the minimum wage. I think that we would all like wages to increase: things have been very difficult for households over the last few years following the economic crisis, and encouraging businesses to pay good wages encourages staff loyalty, motivation and productivity. It is, of course, important to balance that with the fear of unemployment, which we want to keep down.

T2. [901469] Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op): On Monday the Government announced substantial changes in the ECO energy efficiency scheme, including significant scaling back of the component that insulates solid walls. Most of the large-scale local authority and social landlord energy efficiency schemes depend on that component, and there will obviously be a correspondingly negative impact on the insulation industry. What discussions is the Department having with the industry about the likely number of job losses, and what are they doing to mitigate it?

The Minister of State, Department for Business, Innovation and Skills (Michael Fallon): I do not recognise the impact that the hon. Gentleman suggests. The energy company obligation scheme is being extended over a further two years, until 2015, and it is being focused better on those households that need it most.

Greg Mulholland (Leeds North West) (LD): Two hundred and three MPs across this House now back the solution proposed by the Select Committee on Business, Innovation and Skills to pubco overcharging: the market rent only option. Will the Department do the right thing this time, back the Select Committee, deal with this crony capitalism and listen to the voice of small business? Both the Federation of Small Businesses and the Forum of Private Business support our approach.

Jo Swinson: My hon. Friend has been a stalwart campaigner on this issue, which, as he rightly points out, is of great interest to Members on both sides of the House and to the Select Committee. He will be aware that we undertook a consultation earlier this year, and we are reviewing the responses. He is also right to highlight the important contribution that organisations such as the Federation of Small Businesses have been able to make in putting forward further research reports. We hope to be able to publish that kind of information very shortly so that more people will be able to look at the responses.

T3. [901470] Rushanara Ali (Bethnal Green and Bow) (Lab): In the light of the revelation that the Government have failed to act to close a tax loophole that has cost the public some £500 million a year,

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what discussions has the Secretary of State had with Treasury Ministers about the concern that some large firms are failing to pay the correct amount of tax while smaller ones are making their contribution?

Vince Cable: There is a general concern about tax avoidance and there are some very public issues relating to certain companies. However, as the hon. Lady knows, in an hour’s time the Chancellor will be making the autumn statement, and I would be very surprised if a substantial part of that were not devoted to the issue of tax avoidance.

Mr David Heath (Somerton and Frome) (LD): The Gangmasters Licensing Authority does terrific work in dealing with one particular vulnerable group of employees. Is there any scope for extending that way of working to protect other sectors, such as the care and hospitality sectors, in which there is at least the implication of abuse of employees and very low wages?

Jo Swinson: My hon. Friend is right to point out the importance of protecting vulnerable workers. Her Majesty’s Revenue and Customs has recently carried out a two-year investigation into practices in the social care sector, particularly in respect of payment of the national minimum wage, where some non-compliance was found and was absolutely acted on. We need to ensure that such behaviour is cracked down on, which is why we are delighted to be able to put more resources into cracking down on abuse of the national minimum wage, increasing the maximum penalty fines and making it much easier to name and shame employers who deliberately do not pay their workers the right amount. That is the right approach.

T5. [901472] Andy Sawford (Corby) (Lab/Co-op): Is the Secretary of State aware of the latest scam hitting agency workers in my constituency and around the country, whereby £2.50 a week is deducted for personal accident insurance, even though the cost to the agency is a fraction of that and the worker is already covered by employer’s liability insurance? Will he look into that and put a stop to it?

Jo Swinson: The hon. Gentleman has raised issues relating to agency workers on a number of occasions, and I know that in his constituency there is a particular concentration of them. We are always happy to look at whether workers are treated as they should be. I am happy to look into the specific issue he raises and get back to him.

Mr David Nuttall (Bury North) (Con): One of the biggest and most important decisions that any sole trader has to make is whether and when to take on their first employee. Will the Secretary of State set out what steps his Department is taking to make that process as easy as possible?

The Minister for Skills and Enterprise (Matthew Hancock): My hon. Friend is right to identify that moment in the life of a small business. By reducing the amount of national insurance paid, by introducing the employer allowance of £2,000 from April and by setting out that a company cannot be taken to a tribunal for two years, we are hoping to make it much easier to employ people and for small businesses to expand.

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T6. [901473] Stephen Timms (East Ham) (Lab): Work programme providers say that their participants can hardly ever get on to an apprenticeship, and that surely cannot be right. It may partly explain why the Work programme has been so disappointing. Does the Minister agree that more should be done to open up apprenticeships to unemployed people?

Matthew Hancock: A huge proportion of apprenticeships are undertaken by people who were previously unemployed. Of course, every apprenticeship is a job, and in order to get a job someone needs to have an employer willing to take them on. There are many other schemes, such as the traineeships, that Work programme providers work with in order to prepare people for getting a job. Ultimately, an apprenticeship is a job and is therefore a successful outcome for a Work programme person.

Simon Hughes (Bermondsey and Old Southwark) (LD): May I ask the Minister for Universities and Science what progress has been made in expanding the scholarship scheme for university students, particularly to help with the cost of living rather than the cost of fees?

The Minister for Universities and Science (Mr David Willetts): We continue to provide support to students. The national scholarship programme has been shown to have less effect on young people choosing to go to university than some of the other support that is available through maintenance and student access programmes. We continue to work on the agenda set out by my right hon. Friend, ensuring that as many young people as possible from disadvantaged backgrounds apply to university.

T7. [901474] Debbie Abrahams (Oldham East and Saddleworth) (Lab): The Government have consistently been on the back foot when it comes to addressing the issue of late payments to small businesses. In the review of that, how will they address the central issue that late payment is a cultural and leadership issue, and needs to be seen as unethical as tax evasion?

Matthew Hancock: Late payment is indeed a cultural and leadership issue. I held a meeting in the Department last week with all those concerned. As the hon. Lady well knows, we will be publishing a consultation paper very shortly. I commend her for her continued action and pressing on this issue.

Stephen Mosley (City of Chester) (Con): Small business in Chester is really getting behind small business Saturday this weekend. I have delivered more than 400 packs to businesses telling them what it is all about. Will the Minister commit to making an assessment of the success of the first small business Saturday, so that we can improve and help small business in future?

Matthew Hancock: I am sure that we can make a commitment right now to assess the success of small business Saturday, which will be celebrated across this House and across the country. This is the first one this year—it has been going on for some years in the United States—and I hope that it grows and grows.

T8. [901475] Chris Ruane (Vale of Clwyd) (Lab): The number of workers who feel insecure in the workplace has gone up from 6.5 million to 12 million since this

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Government came to power. That has a knock-on effect on the physical and mental health and productivity of workers. Will the Minister make an assessment and do some research into the effects of insecurity on the work force?

Jo Swinson: The hon. Gentleman is right to highlight the downsides of job insecurity. We already have robust data from the workplace employment relations study, which gives us a strong base of research on which to draw to understand those issues. However, I gently point out to him that an increase in job insecurity is related to the fact that we had a massive economic shock on his party’s watch in government. High unemployment and unfortunate economic circumstances are the price that everyone is paying. The least his party can do is apologise.

Dr Julian Huppert (Cambridge) (LD): For many years, Mill Road winter fair has celebrated one of the most diverse shopping areas in Cambridge. This year the fair coincides with small business Saturday. Will the Government congratulate those who have been running the fair and encourage its spread so that we can see real diversity? We also want a road closure so that people can walk easily to the shops.

Matthew Hancock: I congratulate Cambridge on what it is doing for small business Saturday. I am sure that it will be a great success.

T9. [901476] Caroline Lucas (Brighton, Pavilion) (Green): The Secretary of State will be aware of the mechanism in the transatlantic trade and investment partnership that will allow global corporations to sue Governments before secretive arbitration panels that bypass domestic courts. As his own Department’s research says that nothing would insulate the UK from becoming subject to costly and controversial arbitration claims in the future, will he work to ensure that investor-to-state dispute settlements are removed from that agreement?

Vince Cable: The overall context is that the transatlantic agreement between the European Union and the United States, if it materialises, would be of enormous economic benefit. We realise that there are some tricky negotiating issues, and the hon. Lady has highlighted one of them. We will try to ensure that the interests of our economy are properly protected.

Mary Macleod (Brentford and Isleworth) (Con): Will my hon. Friend keep pushing for the teaching of enterprise in our schools, so that we can inspire a whole new generation of entrepreneurs?

Matthew Hancock: Yes, I will, and I pay tribute to my hon. Friend’s work, especially in her constituency where new academies that link the world of work and the world of enterprise are springing up with her support.

T10. [901477] Paul Blomfield (Sheffield Central) (Lab): May I press the Minister for Universities and Science further on why he repeatedly rejected warnings on uncontrolled financial support to students in private higher education colleges? In March, he argued that the policy was important to enable private providers to continue with their expansion, but now that he is faced with a growing black hole in the BIS budget, he has

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reversed the policy. Will he explain why and will he guarantee no further cuts to student support to pay for his mistake?

Mr Willetts: Let us be clear, we inherited from the previous Government a complete rubber-stamping exercise under which there was no control whatsoever over alternative providers. We introduced controls. For example, in the last year, out of 87 applications from alternative providers, 18 were approved and 69 were rejected. That was effective quality control and we have taken further steps to ensure that the Department can remain within its budget.

Mark Reckless (Rochester and Strood) (Con): Our plans predate small business Saturday, but this weekend in Rochester we have a Christmas fair and also a Dickens weekend. They attract many thousands of people to Rochester, which has, almost entirely, independent small businesses. Will the Minister join me in welcoming that?

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Vince Cable: The hon. Gentleman is adding his name to the roll call. Perhaps we could simplify this process, whereby if everybody in the House who does not support small business Saturday puts up their hands.

Bill Esterson (Sefton Central) (Lab): I shall enjoy supporting small business Saturday, too. Many young people take their first job in retail and gain vital experience and training that stands them in good stead for the rest of their working lives. Given the problems that retail faces, what steps will the Government take to support retail, especially to deal with the scourge of youth unemployment?

Matthew Hancock: We support the national skills academy for retail, and I recently opened its new premises. It is a great supporter, ensuring that people in retail have the right skills to do the job and to progress.

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Business of the House

10.31 am

Ms Angela Eagle (Wallasey) (Lab): Will the Leader of the House give us the business for next week?

The Leader of the House of Commons (Mr Andrew Lansley): The business for the next week is as follows:

Monday 9 December—Second Reading of the Intellectual Property Bill [Lords], followed by a motion to approve a statutory instrument relating to terrorism, followed by a general debate on rural communities. The subject for this debate was determined by the Backbench Business Committee.

Tuesday 10 December—Remaining stages of the National Insurance Contributions Bill, followed by: the Chairman of Ways and Means has named opposed private business for consideration.

Wednesday 11 December—Motion to approve a Ways and Means resolution relating to the Financial Services (Banking Reform) Bill, followed by a motion to approve a money resolution relating to the Financial Services (Banking Reform) Bill, followed by consideration of Lords amendments to the Financial Services (Banking Reform) Bill.

Thursday 12 December—Select Committee statement on the publication of the first report from the Liaison Committee entitled “Civil Service: Lacking Capacity”, followed by a general debate on the fishing industry, followed by a debate on a motion relating to Ford and Visteon UK Ltd pensioners. The subjects for both debates were determined by the Backbench Business Committee.

Friday 13 December—The House will not be sitting.

The provisional business for the week commencing 16 December will include:

Monday 16 December—Second Reading of the Care Bill [Lords].

Tuesday 17 December—Remaining stages of the Local Audit and Accountability Bill [Lords].

Wednesday 18 December—Opposition day (15th allotted day). There will be a debate on accident and emergency services, followed by a debate on food banks. Both debates will arise on an official Opposition motion.

Thursday 19 December—Business to be nominated by the Backbench Business Committee.

Friday 20 December—The House will not be sitting.

I should also like to inform the House that the business in Westminster Hall for 16 January will be:

Thursday 16 January—A combined debate on the second report from the Justice Committee on “Women Offenders: After the Corston Report” and the fifth report on older prisoners.

Ms Eagle: I thank the Leader of the House for announcing next week’s business.

The right hon. Member for North West Hampshire (Sir George Young) announced this week that after a good innings in Parliament he will declare on 41 not out. I am sure that everyone will join me in paying tribute to one of the longest serving Members of the House, and I wish him all the best in his next choice of career. I will not predict a swift return this time, but may

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I suggest that his local party needs to incorporate an IQ test as part of the selection process for his successor to stop the Mayor of London sniffing around?

I note that on the Order Paper today there is a written ministerial statement on the progress of universal credit—a major announcement about a flagship Government policy that as recently as last month the Work and Pensions Secretary guaranteed would be delivered on time. The statement was slipped out just two hours before the autumn statement, and made available to the media before it was made available to the House. It announces major delays and the complete upheaval of the universal credit scheme, which affects millions of people. Despite the importance of the announcement, there is very little detail about what is actually going on. This is a contemptible way to treat Parliament.

When the Work and Pensions Secretary’s delusions about the practicality of his grand reforms collide with reality, he should be forced to come to this House in person to account for himself. Will the Leader of the House now guarantee that the Secretary of State will explain himself to the House at the earliest opportunity?

The Prime Minister’s unlikely infatuation with the Chinese Communist party continued apace this week, as he skipped Prime Minister’s questions again, postponed the autumn statement until today and flew to Beijing to deliver a framed photograph of himself and a biography of Margaret Thatcher. After being in the diplomatic deep freeze for three years, the Prime Minister took his re-initiation like a man and ended up feasting on bamboo fungus in the spectacular surroundings of the great hall of the people—and to think he was the one who accused my right hon. Friend the Member for Oldham West and Royton (Mr Meacher) of taking mind-altering substances. It is clear that the Prime Minister has been getting into bad habits, too; his press conference with the Chinese Premier consisted of two long statements, no questions, and concluded to rapturous applause from the journalists who had the honour to be present. I think the Lobby had better watch out.

The Prime Minister has been on more foreign junkets in three short years than there are Lib Dem betrayals, but the trade deficit has got worse this year, so may we have a statement on the value for money that these spectacularly expensive, taxpayer-funded PR opportunities represent?

There is less than an hour to go before the Chancellor gets to his feet to deliver the delayed autumn statement. We have had the usual raft of selected leaks to the press and Government pre-statement announcements. The Chancellor was even tweeting bits of it last night. He’s got form. In the 2012 Budget, we had tax U-turns on pasties, charities and caravans, and the word “omnishambles” entered the Oxford English Dictionary. In last year’s autumn statement, the Chancellor’s flagship Swiss tax deal and the 4G auction both raised less than a third of what he had scored in the Red Book, and large chunks of the last Budget were published before he even got to the House.

This year, the Chancellor has been busy getting his U-turns in first. He has been getting more incoherent by the day. He thinks it is Marxist to cap energy prices but positively Thatcherite to cap payday loans. He has been so panicked by the popularity of our energy price freeze that he has persuaded the Energy Secretary to claim that a £70 increase in bills is actually a cut. When will he

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realise that, on energy, only a price freeze will do? And while he is at it, will he realise that after the record £1.4 billion Euro-fine of banks involved in the Euribor and LIBOR fixing yesterday, he should accept the Lords amendments to the banking reform Bill that create a licensing regime for senior bankers? Will the Leader of the House confirm that he is planning to do that?

Despite the welcome news that our economy is growing again, growth is only a third of what the Chancellor predicted it would be in 2010 and we have the slowest recovery for 100 years. All the Chancellor has delivered is a recovery that helps a few at the top and leaves ordinary people hurting. That is this Chancellor all over—tax cuts for millionaires and a living standards crisis for everybody else.

Mr Lansley: I am grateful to the shadow Leader of the House for her response to the future business and especially for her very kind words about the Parliamentary Secretary to the Treasury, my right hon. Friend the Member for North West Hampshire (Sir George Young). The House will have an opportunity, which I look forward to, to express its full appreciation of my right hon. Friend—[Interruption.] There is plenty of time yet. You never know with my right hon. Friend quite what is going to happen, because he has a habit of re-emerging in different guises. He has had more regenerations than Dr Who.

The hon. Lady asked about the written statement by my right hon. Friend the Secretary of State for Work and Pensions, in which he set out the further steps we have been taking to trial, learn, implement and put in place an effective online digital system. [Interruption.] It is perfectly reasonable to tell the House about steps that are being taken in line with the policy to deliver universal credit on time and on budget, and my right hon. Friend has done it by way of a written statement to the House.

The hon. Lady asked about the Prime Minister not being here for Prime Minister’s questions yesterday. As it happens, and as she knows, the Prime Minister has been here to answer questions at least as often as his predecessors. In particular, he has made more statements to the House than any of his predecessors. What the hon. Lady said was wrong in relation to where the Prime Minister’s priorities should lie. He has, among many other things, been a leader in going around the world winning business for this country, and for him to be in China winning £1 billion of business will enable us, having almost doubled exports to China under this Government, to do more in the future. It is extremely important that we do so.

The hon. Lady asked the Financial Services (Banking Reform) Bill. I announced that the House would consider amendments from the Lords during our debates next Wednesday. If I may, I will leave that debate until next Wednesday, rather than pre-empt it now. The Bill will enable us to put in place effective banking regulation for the future, after the failure of the tripartite system that was put in place by the shadow Chancellor when he was the financial services Minister.

Speaking of the shadow Chancellor, we are all looking for him. We could not find him when the national infrastructure plan was being reported to the House yesterday, so we look forward to having him here today.

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I am sort of sorry that, in the business announced, the Opposition did not use their opportunity of an Opposition day before Christmas to debate the economy, as we could have discussed the long-term plan of this Government, which is clearly demonstrating that we are turning the corner and building a strong and sustainable recovery. After the small hors d’oeuvre of business questions, I look forward to a satisfying main course when the Chancellor makes his statement.

An Opposition day debate before Christmas would enable us to contrast what we are doing and what the Chancellor will say in his statement with the absence of any plan now from the Opposition. They had plan B. That seems to have disappeared, along with the prospects of the shadow Chancellor. Such a debate would enable us to recall, in a compare and contrast way, what the Leader of the Opposition had to say when President Hollande was elected, which I always rather relish. He said that what President Hollande was going to do for France, Labour was going to do for Britain. In truth, that is a contrast that, like their plan B, the Opposition now do not want to talk about.

Several hon. Members rose

Mr Speaker: Order. As always, many right hon. and hon. Members are seeking to catch my eye, but time is especially constrained today as the autumn statement will begin at 11.15. As a consequence, there is a premium on brevity from Back and Front Benches alike, beginning with Mr Nigel Evans.

Mr Nigel Evans (Ribble Valley) (Ind): Some 44 million people worldwide suffer with Alzheimer’s disease and it is estimated that the number will treble by 2050. May we have a debate on dementia to see what more we can do to help carers, those who have a loved one suffering with Alzheimer’s, and research and development in order to give hope to people suffering with Alzheimer’s?

Mr Lansley: Members across the House will share with my hon. Friend a sense of the importance that we attach to making further progress in the research into the causes of dementia and its treatment, and the way in which we as a society respond to those with dementia. I was very pleased that the Backbench Business Committee was able to schedule a debate before the G8 summit next Wednesday. I hope that with the progress we are making in research on dementia and its treatment, there may be further opportunities in the new year.

Andrew Miller (Ellesmere Port and Neston) (Lab): May we have an urgent debate on the Government’s policy to exacerbate the north-south divide following the announcement, which advantages the Leader of the House’s constituency, that the A14 will not be tolled but the Mersey Gateway will?

Mr Lansley: I do not know whether the hon. Gentleman was here yesterday, but the Chief Secretary to the Treasury was perfectly clear that it is entirely normal to toll estuarial crossings. If the A14, which passes through my constituency, had been tolled, it would have been the only main route tolled in circumstances where there was no viable alternative.

Mr Alan Reid (Argyll and Bute) (LD): My constituent William Irving, a former soldier, has been held in prison in India for more than seven weeks without charge,

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along with five other British citizens. May we have a statement from the Foreign Office on what efforts are being made to try to secure the release of Mr Irving and his fellow prisoners and to look after their health and welfare, bearing in mind that he has been ill with dysentery?

Mr Lansley: I completely understand why my hon. Friend raises this importance issue for his constituents—other Members of the House are in a similar situation. Consular officials have been providing assistance since the men were detained, liaising closely with the Estonian and Ukrainian embassies, as nationals of those countries are also involved. They have visited them four times to confirm their welfare and ensure that they have access to legal representation. We are also providing ongoing support to their families in the UK.

Kate Hoey (Vauxhall) (Lab): The Leader of the House will know that the chairman of the BBC Trust, Lord Patten, refuses to appear before the European Scrutiny Committee. May we have a debate or a discussion on how we can ensure that he is not abusing his position as a Lord to avoid appearing before the Committee, which wishes to talk about scrutiny in relation to European elections and BBC bias?

Mr Lansley: I am aware of what the hon. Lady is talking about. I note from Lord Patten’s correspondence with the Chair of the European Scrutiny Committee that he expressly did not rely on the fact that he is a Member of the House of Lords in this regard. I will have conversations with the Committee’s Chair and the BBC on the matter, because there is a difference between independence for the BBC, which we absolutely must respect, and accountability, which should enable this House to ask reasonable questions.

Mr Speaker: I must say that anybody who is invited to appear before a Committee of this House should do so. No one, however senior, should imagine him or herself above such scrutiny. That is a very important principle.

Conor Burns (Bournemouth West) (Con): My right hon. Friend will be aware of a proposal for a large offshore wind farm by the Navitus Bay company off the coast of Bournemouth. In the light of the Government’s announcement this week on onshore and offshore wind farm subsidy, my constituents are profoundly concerned that the development could go ahead. It has been shown that a third of summertime visitors would not return during the five-year period of construction and that 14% would never return. Will he provide an opportunity for the Government to reassure my constituents that some offshore wind farms are, and remain, as inappropriate as some onshore ones?

Mr Lansley: My hon. Friend makes his point straightforwardly and forcefully. I will talk with my right hon. and hon. Friends at the Department for Communities and Local Government about that, particularly the extent to which the points he raises are material considerations in relation to planning.

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Mr Barry Sheerman (Huddersfield) (Lab/Co-op): I am sure that the Leader of the House will have seen that Huddersfield university won the university of the year award last Friday, and, indeed, that last year it was the entrepreneurial university of the year. May we have a debate on student loans and the fact that the sell-off of student loans will be a very hard lesson for those people who owe money and will now be chased by some of the hard men of the loan business?

Mr Lansley: I gladly join the hon. Gentleman in congratulating Huddersfield university—as the Member of Parliament who represents Cambridge university, I am glad to do so. On his other point, I remind him that, notwithstanding the sale of the student loan book, the regulations and provisions that apply to the recovery of student loans will be no different for any future owner than they are for the Government now.

Oliver Colvile (Plymouth, Sutton and Devonport) (Con): May I congratulate the Government on their announcement this week about keeping energy prices down and South West Water on its announcement that it will freeze water prices for the next two years? Unfortunately, Labour-controlled Plymouth city council is considering putting up council tax next year despite the Chancellor’s announcement that that does not need to happen. May we have a debate on this before the budgets are set by local authorities such as Plymouth?

Mr Lansley: My hon. Friend, like me, might have been surprised that when Labour Members responded to a statement on water bills they appeared completely to ignore the fact that this Government had taken steps to ensure that water bills in the south-west were kept down through substantial support to the local water company. This Government have enabled council tax to be frozen right through this Parliament. That is very significant, as is the fact that council tax doubled under the previous Labour Government. However, this is of course something that local authorities have to take up.

Sammy Wilson (East Antrim) (DUP): This week millions of Royal Bank of Scotland customers suffered inconvenience and embarrassment when they could not use their bank cards. The week before, it was revealed that businesses have been forced into bankruptcy so that RBS could seize their assets. May we have a debate on what is happening in this state-owned bank?

Mr Lansley: The hon. Gentleman will understand that I cannot offer a debate at the moment, but he will appreciate that during next Wednesday’s debate on banking reform issues may well arise relating to banking standards and the performance of the banks, including those in which the public sector—the Government—has a substantial stake, and he may wish to use that opportunity to discuss them.

Mr Peter Bone (Wellingborough) (Con): In about 34 minutes we will hear the autumn statement for the second time. I am sure the Leader of the House is as horrified as other Members about how much of it has already been leaked. Previously, the Government have said that this has been due to Liberal Democrat Ministers leaking the information. May we have a statement next week on this very serious matter?

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Mr Lansley: My hon. Friend will understand that, in so far as he is surmising anything, he is in fact speculating. We have not heard the statement yet, so let us hear it. I am sure that the recommendations set out in the Macpherson review back in July have been adhered to by the Chancellor and the Treasury. I hope that is helpful to my hon. Friend.

Chris Bryant (Rhondda) (Lab): How can it possibly be right for the Secretary of State for Work and Pensions to announce a complete restructuring of universal credit by means of a written statement and give it to the press two hours before he gives it to us, and to answer questions from the press before we are able to ask questions? Does not the Leader of the House understand the fundamental principle of his job, which is to make sure that we are able to ask questions? For instance, we would like to ask whether, when the Secretary of State says in his written ministerial statement that the majority of the legacy cases will be moving to universal credit in 2016 and ’17—the majority, note, not all—he really means that he would like to apologise to the House because he got it wrong two weeks ago when he said that this was on budget and on time?

Mr Lansley: I will be responsible for discharging my responsibility to the House and the hon. Gentleman can be in charge of his. It is important for the House to recognise two things. First, putting a written ministerial statement before the House is announcing something to the House; it should not be disregarded. Secondly, on the day of the autumn statement it is perfectly reasonable for the Secretary of State for Work and Pensions, who will be seeing the Select Committee on Monday, not to be making an oral statement.

Glyn Davies (Montgomeryshire) (Con): The most effective way of reducing incidents of stroke disease is by identifying and treating atrial fibulation. May we have a debate on improving access to and take-up of newly developed National Institute for Health and Care Excellence-approved drug treatments?

Mr Lansley: I cannot promise a debate immediately, but this is an important issue. My hon. Friend will appreciate that during my several years as chair of the all-party group on stroke, it was one of the issues that emerged. We are making progress on a wide front in relation to the improvement of stroke services and on fast identification and treatment of stroke. On prevention, I hope that what my hon. Friend says about AF will be emphasised in our discussions about improving stroke services for the future.

Thomas Docherty (Dunfermline and West Fife) (Lab): The overseas territories joint ministerial council took place last week and covered a huge number of issues that are of mutual interest to the UK Government, this Parliament and the overseas territories. Could a Foreign Office Minister be asked to come to the House to give a full statement so that we can hold them to account?

Mr Lansley: The hon. Gentleman will know that the second joint ministerial council took place in London on 26 November and that its overall theme was jobs and growth. The meeting covered a range of subjects and an ambitious communiqué outlining the commitments made was issued at its conclusion. The United Kingdom’s

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relationship with the overseas territories is a very important one. The Government would welcome any proposal for a debate on the progress made at the council. The hon. Gentleman may wish to encourage colleagues to go before the Backbench Business Committee at some point to seek time for a debate on the subject in Westminster Hall.

Robert Halfon (Harlow) (Con): Has my right hon. Friend seen my early-day motion 845 on the future of the Harlow respite care centre for children with special needs?

[That this House acknowledges that the Maples children’s respite centre in Harlow is an integral part of the community that provides comfort and security to families and children with special needs; notes that Councillor Madden, Cabinet member for Essex County Council, has said that no final decision about the centre’s future will be taken unless alternative services that meet local needs are in place; strongly believes however that the Maples respite centre should be kept open as it is unlikely that similar alternative provisions will be found and that its closure would be detrimental to its hard-working staff, volunteers, parents and children for which the Maples acts as a lifeline; commends the petition (www.change.org/en-GB/petitions/essex-county-council-ensure-the-future-of-the-maples-respite-centre) that has been signed by 1,076 people; and urges Essex County Council to take note of the strong feelings of Harlow residents.]

May we have a statement on the future of the Maples home in Harlow, which provides respite for children with special needs and their families? Essex county council is currently consulting on the future of the centre and possible closure. Will my right hon. Friend urge the Minister responsible to look into the matter and see what support is available for the centre?

Mr Lansley: Once again my hon. Friend raises an issue of importance to his constituents, as evidenced by the number of signatories to the petition. He will know that short-break services are a priority for this Government. We know how they support children with disabilities and their families, which is why £800 million has been made available to local authorities for short breaks and why we have introduced a short-breaks duty requiring all local authorities to provide such services for disabled children and young people. As my hon. Friend will know, it is for local authorities to decide, in collaboration with local health services, the level and type of support they will make available. It is encouraging that the cabinet member for Essex county council has given assurances that no final decision about the centre’s future will be taken unless alternative services are available that meet families’ needs. I hope that is of some reassurance to my hon. Friend.

Yvonne Fovargue (Makerfield) (Lab): May we have a debate on the complete disarray in NHS England, which is causing ever-lengthening delays and increasing concerns about the future of two greatly needed health centres in Orrell and Ashton?

Mr Lansley: I am sorry, but I do not accept remotely the premise of the hon. Lady’s question. Given that NHS England formally started its work in April this year, I think that she and Members across the House should support it in its difficult tasks.

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Tessa Munt (Wells) (LD): One of my constituents was forced to spend six months on unemployment benefit while he waited for the Driver and Vehicle Licensing Agency to process his medical, after which his large goods vehicle licence was returned to him. May we have a debate on the way in which the DVLA’s administration could be streamlined so that constituents like mine do not have to wait unnecessarily for extended periods at vast cost to the taxpayer?

Mr Lansley: I understand what my hon. Friend is saying, not least because I have a constituent who was in a similar position. If I may, I will ask my colleagues at the Department for Transport if they will look at the issue, because it is very difficult for those with medical conditions who have their driving licence suspended. If they recover, the failure to process the reacquisition of their driving licence quickly can, at the very least, be of considerable and serious inconvenience to them and potentially costly.

Alison McGovern (Wirral South) (Lab): Minister after Minister has come to the Dispatch Box and trumpeted the number of new jobs, but they are not able to say how many of them are part time or short hours, whether they arise from public sector reclassification or are zero-hours contracts. May we have a statement to clear this mess up?

Mr Lansley: On the contrary, I have heard my hon. Friends making it very clear that there are statistics relating to the number of those in part-time employment. The Chartered Institute of Personnel and Development and others have definitions of things such as zero-hours contracts. There were never statistics under the previous Government. I am not sure why the hon. Lady imagines it is a fault on the part of this Government that we do not have those defined statistics, but she is right to say that we come to this Dispatch Box to trumpet the number of new jobs: there are 1.4 million more private sector jobs under this Government.

Dr Thérèse Coffey (Suffolk Coastal) (Con): A few weeks ago, St Jude’s storm resulted in several thousand households in Suffolk being disconnected from electricity. The storm that is gathering in Scotland today is coming to Suffolk, with the entire coastline under a severe flood warning. I know that the Prime Minister has asked the Secretary of State for Environment, Food and Rural Affairs to chair a Cobra meeting. When will the Secretary of State be able to come to the House to make a statement?

Mr Lansley: The Prime Minister, the Secretary of State for Environment, Food and Rural Affairs and other Ministers are very aware of the risk associated with a surge tide and the risk that the current storm presents to my hon. Friend’s constituency and others. Many Scottish Members’ constituents are already experiencing the effects of the storm. I cannot at this stage say when the Secretary of State may be able to update the House. At the moment, he is engaged in considering precisely how every measure that might be taken is taken to help support those who may be affected.

Andy McDonald (Middlesbrough) (Lab): If we cannot have a statement on the universal credit debacle, may we please have one on exemption from the bedroom tax?

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Last week, the Prime Minister claimed that disabled people are exempt, although the Leader of the House mischievously did his best to attribute to him words that he never uttered. In reality, they are not exempt, and the extra money put into discretionary housing payments is nowhere near enough to make up the shortfall.

Mr Lansley: I have heard Work and Pensions Ministers repeatedly respond extremely well to issues of the kind raised by the hon. Gentleman, in response not only to questions but to debates initiated by the Opposition.

Mary Macleod (Brentford and Isleworth) (Con): The Airports Commission under Howard Davies is due to report this month on a shortlist of options in relation to the future of aviation capacity across the UK. Will my right hon. Friend consider holding a debate on that in the new year, because it affects all regional airports as well as London?

Mr Lansley: We are anticipating the publication of Howard Davies’s interim report, and I am sure that the House will want to consider it. May I, however, gently remind my hon. Friend and other hon. Members that following the establishment of the Backbench Business Committee, issues that they consider priorities can be debated by the House through an application to that Committee?

Nic Dakin (Scunthorpe) (Lab): Conservative North Lincolnshire council has said that it will not support people hit by the bedroom tax who smoke. May we have a debate in the House about how local authorities are or are not supporting people hit by the bedroom tax with discretionary housing payments?

Mr Lansley: The hon. Gentleman will know, because I have heard my right hon. Friend the Secretary of State for Work and Pensions say this in the House, that additional resources have been made available to local authorities to help those with specific additional needs as a result of the spare room subsidy. In relation to precisely what local authorities are doing, I was not aware of the North Lincolnshire example, but I will of course speak to my hon. Friends at the Department for Work and Pensions about whether they are aware of it and can respond to him.

Mr David Heath (Somerton and Frome) (LD): I have absolutely no requirement for assistance with payment protection insurance, insulating my property or making a claim for an accident that was not my fault, yet I am inundated with phone calls offering me such assistance, as are people up and down the country. In the light of the publication today of a report by the Culture, Media and Sport Committee and of the sterling work by my hon. Friend the Member for Edinburgh West (Mike Crockart) to get a debate in Back-Bench time, will the Leader of the House arrange for a Minister to report on how we can deal with nuisance calls?

Mr Lansley: It may be little comfort to my hon. Friend to know that he is not alone, but I hope that it may be some comfort to know that tackling unsolicited marketing or nuisance calls is being addressed through the measures in the Department for Culture, Media and Sport strategy paper that was published on 30 July, as

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he will recall. An action plan will be published shortly to set out future plans. I hope that it will be possible for Ministers to update the House during the type of debate that he mentioned.

Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op): Foreign students who get places at British universities but do not have good enough maths and English get extra coaching, but British students who are predicted to get good A-level grades but have grade C in GCSE maths do not receive the same support. Given the Government’s professed support for social mobility, will the Leader of the House ask a Minister to come to the House to make sure that that anomaly is dealt with?

Mr Lansley: The hon. Lady raises an interesting point. When I was at my old university in Exeter recently, I saw the substantial facility that it has to provide additional support to those whose first language is not English. If I may, I will ask my right hon. Friend the Minister for Universities and Science to respond to her on the point that she raises.

Mark Reckless (Rochester and Strood) (Con): Why are the remaining stages of the Immigration Bill being delayed? It would surely make sense for the House to vote on whether to extend the immigration restrictions for Bulgaria and Romania in advance of their being lifted on 1 January.

Mr Lansley: I assure my hon. Friend that the Immigration Bill is not being delayed; it is simply that there is a lot of legislation before the House. In the future business before Christmas, I have announced progress on five Government Bills. Let me also explain to him that if there was a debate on the Immigration Bill in this House before Christmas, it would not necessarily have an impact on the timing of Royal Assent, because this is the first House that the Bill must pass through, not the second. My right hon. Friend the Home Secretary announced important measures on this matter last week. I am therefore hopeful that regulations will be laid before the House shortly.

Jonathan Edwards (Carmarthen East and Dinefwr) (PC): I was visited recently by a constituent who has terminal cancer. His condition will not lead to immediate death and he wishes to visit family and friends in Spain. However, he is unable to obtain affordable travel insurance. May we have a statement on what help the Government can offer to bring down the cost of travel insurance for individuals who find themselves in that situation?

Mr Lansley: That sounds as though it is a particularly difficult and distressing situation for the hon. Gentleman’s constituent. If I may, I will talk to my right hon. and hon. Friends at the Department of Health and the Foreign and Commonwealth Office to see whether they can help.

Dr Julian Huppert (Cambridge) (LD): Isa Muazu has been held for months in Harmondsworth detention centre and has been on hunger strike for more than 100 days. He is ill and cannot stand or see properly. The Home Secretary tried to deport him nonetheless, but the plane had to fly back from Nigeria. May we have a debate on why the Home Secretary has spent well over £100,000 on trying to deport a seriously ill man?

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Mr Lansley: I will, if I may, ask the Home Secretary to respond to my hon. Friend on that specific case. Generally speaking, it is her responsibility to enforce the law, including immigration law, and she does that robustly.

Ian Murray (Edinburgh South) (Lab): I do not know whether the Leader of the House is a reader of fiction, but if he is I recommend that over the Christmas period, he read the Scottish Government’s White Paper on independence. Once he has read that paper, I urge him to come back and offer some time for a debate on it in this House.

Mr Lansley: As it happens, I have read the Scottish White Paper. Having read it, I was surprised to find that assumptions within it were overturned within hours. The House might want to seek an opportunity to debate that paper, not least through the Backbench Business Committee, because it is important to Members across the House.

Bob Blackman (Harrow East) (Con): In Harrow, reported crime is down by 10%, the clear-up rate is up by 22% and the number of police on our streets will be at record levels next March. May we have a debate on crime and policing so that we can proclaim the good news?

Mr Lansley: I am grateful to my hon. Friend, as I am sure the Home Secretary and other Home Office Ministers will be. I cannot promise a debate straight away because the amount of legislation is putting such pressure on Government time that it is precluding us from debating the many successes of this Government, of which the reduction in crime is an important one.

Richard Burden (Birmingham, Northfield) (Lab): Hundreds of thousands of people will have to use food banks this Christmas, so I welcome the fact that there will be a debate on them. Will the Leader of the House ask the Prime Minister to attend that debate? To support the case for that, perhaps he could use today’s Daily Mirror, in which Sara Broadbent, who has just had her hours cut from 16 to five, says:

“David Cameron lives just down the road and he could do a lot more for us… I’d like to be able to look after my own kids and have food in the cupboards but there are times…when you just can’t do it.”

Should the Prime Minister not account for the cost of living crisis over which he is presiding?

Mr Lansley: As the hon. Gentleman noted, the Opposition have chosen that subject for debate and Ministers will respond. In that context, I think Members across the House will support food banks and charities that support others who are in need this Christmas, and rightly so. Last Saturday, along with many others in my constituency I participated in a food collection at Tesco to support the Cambridge food bank.

Jason McCartney (Colne Valley) (Con): May we have a debate on transparency in local government? In the past week, Labour councillors voted en bloc in Kirklees to approve a supermarket in Slaithwaite, despite local concerns and a last-minute plea from 39 local businesses. Members in this House are held accountable in a transparent way for how they vote. Does my right hon.

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Friend agree that local councillors should be held accountable for the way they vote and decisions they make on behalf of our local communities?

Mr Lansley: My hon. Friend is absolutely right. Councillors should be accountable for the decisions they make—[Interruption.] Opposition Members are helpfully making the point that if Labour councillors are making decisions that are contrary to the views and interests of my hon. Friend’s constituents, come the next election those constituents will have an opportunity to do something about it.

Debbie Abrahams (Oldham East and Saddleworth) (Lab): This week 100,000 people signed a petition calling for a cumulative impact assessment on the effects of the Welfare Reform Act 2012 on sick and disabled people. Will the Leader of the House agree to a debate in this Chamber on that cumulative impact assessment?

Mr Lansley: I did, of course, write to the Chair of the Backbench Business Committee noting that that petition had passed the point of 100,000 signatures. At the meeting on Tuesday that Committee received a submission from Members about a debate on that subject. It is now not for me but for the Backbench Business Committee to decide whether a debate should be timetabled.

Greg Mulholland (Leeds North West) (LD): Members across the House are helping constituent businesses with issues of bank bullying—I currently have cases involving Barclays, Lloyds and Yorkshire Bank. In the light of the Tomlinson report, may we have a debate on how we deal with that issue, which is high on the agenda of our constituents?

Mr Lansley: My hon. Friend makes an important point that, I reiterate, is germane to the debate on the Financial Services (Banking Reform) Bill. Lords amendments to that Bill will be debated in this House on Wednesday, I hope the important issue my hon. Friend raises may form part of that debate.

Albert Owen (Ynys Môn) (Lab): Many thousands of households in Wales and England are concerned about the recent registration of manorial rights, including 4,000 households in Ynys Môn. May we have a debate

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on that issue, and will the Government give reassurance and information so that we protect the rights of ordinary people in Anglesey and beyond?

Mr Lansley: The hon. Gentleman will know that registration of notice of manorial rights at the Land Registry is not related to rights relating to shale gas or oil. The Petroleum Act 1988 vests all rights to the nation’s petroleum resources in the Crown. Manorial rights have a distinct legal history, but can be legitimately bought and sold in the same way as other property rights. The registration of notice of manorial rights records existing rights so that people know they exist; it does not create new rights although it does, of course, help prospective buyers avoid what would otherwise be hidden rights. The hon. Gentleman will appreciate that property owners who were unaware of existing mining rights when the notices arrived may have been alarmed by that, but I recommend they obtain legal advice, which should reassure them. If Members of the House have evidence of problems, my hon. Friends at the Ministry of Justice will be happy to help.

Stephen Mosley (City of Chester) (Con): May we have a debate on the effectiveness of the shadow Chancellor? After all, he claimed we are entering a triple-dip recession, that we should model our economy on that of France, and that we can reduce debt by borrowing more.

Mr Lansley: I am grateful to my hon. Friend. It was in fact not just the shadow Chancellor but the Leader of the Opposition who, as I recall, said that what President Hollande is going to do for France, Labour would do for Britain. We are looking forward to a demonstration of the increasingly disappearing shadow Chancellor and his plan B.

Tom Blenkinsop (Middlesbrough South and East Cleveland) (Lab): Average weekly gross pay for women in my constituency has fallen by £12.30 since 2010, while long-term female unemployment has risen by 144% since May 2010—[Interruption.] May we have a debate on why the Government do not have one wise man, let alone three?

Mr Lansley: I am sorry that I did not hear all that the hon. Gentleman had to say, but I remind him that we have record employment for women, and 1.5 million women on low earnings are out of tax all together as a consequence of the increases in the personal allowances under the coalition Government.

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Autumn Statement

11.15 am

The Chancellor of the Exchequer (Mr George Osborne): Britain’s economic plan is working, but the job is not done. We need to secure the economy for the long term, and the biggest risk to that comes from those who would abandon the plan. We seek a responsible recovery, one in which we do not squander the gains we have made, but go on taking the difficult decisions, and one in which we do not repeat the mistakes of the past, but this time spot the debt bubbles before they threaten financial stability. We seek a responsible recovery, in which we do not pretend we can make this nation better off by writing cheques to ourselves, and instead make the hard choices. We need a Government who live within their means, in a country that pays its way in the world.

Three and a half years ago, I set out our long-term economic plan in the emergency Budget. That plan restored stability in a fiscal crisis, but it was also designed to address the deep-seated problems of unsustainable spending, uncompetitive taxes and unreformed public services for which there are no quick fixes. Over the last three years we have stuck to our guns and worked through the plan. We have done so in the face of a sovereign debt crisis abroad, and at home in the face of opposition from those who got Britain into this mess in the first place and have resisted every cut, every reform, and every effort to get us out of that mess. We have held our nerve while those who predicted there would be no growth until we turned the spending taps back on have been proved comprehensively wrong.

Thanks to the sacrifice and endeavour of the British people, I can today report the hard evidence that shows our economic plan is working, but I also report the hard truth that the job is not yet done. Yes, the deficit is down, but it is still far too high, and today we take more difficult decisions. Yes, the forecasts show that growth is up, but the same forecasts show growth in productivity is still too low, and today we set out further economic reforms. Yes, jobs are up and unemployment is down, but too many of our young people lack the skills to fill those jobs and the opportunities to acquire them, so now we take bold steps to remove that cap on aspiration. Yes, businesses are expanding, but business taxes are still too high and exports are too low and we must address that. And yes, real household disposable income is rising, but the effects of the financial crash on family budgets and the cost of living are still being felt. So where we can afford to help hardworking families, we will continue to do so—[Interruption.]

Mr Speaker: Order. Mr Ruane, calm yourself, man. Your bellicose barracking is detectable several miles away.

Mr Osborne: The hard work of the British people is paying off, and we will not squander their efforts. We will secure the economy for the long term, and this statement sets out how.

Let me turn to the report from the Office for Budget Responsibility. Again, I thank Robert Chote and his team for their rigorous and independent work. The

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OBR report notes that the Office for National Statistics has reassessed the depth of the great recession. The fall in GDP from peak to trough between 2008 and 2009 was not 6.3% as previously thought, but was instead an even more staggering 7.2%; £112 billion was wiped off our economy—about £3,000 for every household in this country—in one of the sharpest falls in the national income of any economy in the world. That is a reminder of the economic calamity that befell Britain and of the simple fact that our country remains poorer as a result of it. A lot of work still remains to be done to put that right. The data revisions also showed something else: there was no double-dip recession.

Let me turn to the future. At the time of the Budget in March, the OBR forecast that growth this year would be 0.6%. Today, it more than doubles that forecast and the estimate for growth will be 1.4%. Next year, instead of growth of 1.8%, it is now forecasting 2.4%. Faster growth now means that it has revised the following four years to 2.2%, 2.6%, 2.7% and 2.7%, so growth over the forecast period is significantly up. It is still not as strong as we would like it to be, but this is the largest improvement to current year economic forecasts at any Budget or autumn statement for 14 years. I can report that Britain is currently growing faster than any other major advanced economy: faster than France, which is contracting; faster than Germany; and faster even than America. That contrast itself points to the risks that remain for the UK from abroad, and the weakness of many of our main trading partners.

The first risk the OBR identified to our economic recovery is a recurrence of the damaging instability in the eurozone. Even with the relative calm of recent months, the OBR still forecasts that the euro area as a whole will shrink by 0.4% this year. Its growth forecasts for the US and emerging markets have also been revised down, and world trade has been weaker than it expected in March. While our exports are growing, they are not growing as fast as we would like. That is because we are too dependent on markets in Europe and north America. The Prime Minister’s visit to China this week is the latest step in the Government’s determined plan to increase British exports to the faster growing emerging markets, something our country should have done many years ago. Today, I am doubling to £50 billion the export finance capacity available to support British businesses, expanding the help available to firms in these emerging markets and ensuring that our excellent new trade Minister, Lord Livingston, has all the firepower he needs.

Let me turn to the forecast for employment. Today in Britain, employment is at an all-time high and the OBR has revised up its forecast for the future. It was expecting jobs to stay flat over the year, but it now expects the total number of jobs to rise by 400,000 this year. This is being felt right across the country. Since 2010, the number of jobs in Carlisle and on the Wirral, and from Selby to south Tyneside, has grown faster than in London. Meanwhile, the number of people claiming unemployment benefit has fallen by more than 200,000 in the past six months—the largest such fall for 16 years. Unemployment is also lower than in 2010, and is forecast to fall further from 7.6% this year to 7% in 2015, before falling even further to 5.6% by 2018. We have the lowest proportion of workless households for 17 years.

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There were those who said it was a “fantasy” to believe that businesses could create jobs more quickly than the public sector would have to lose them. What they should have said was that it would be fantastic if it happened. So I have good news for them. Businesses have already created three jobs for every one lost in the public sector, and the OBR report today forecasts that this will continue, with 3.1 million more jobs being created by businesses by 2019, which, in its words, “more than offsets” the million or so reduction in the public sector headcount. Far from the mass unemployment predicted, we have a record number of people in work, hundreds of thousands fewer on welfare, and unemployment lower than when we came to office, and we will have 2 million more jobs than in 2010—an economic plan that is working and a Government who are seeking a job-rich recovery for all.

Let me turn now to the forecasts for Government borrowing and debt. When this Government came into office, the deficit was 11% of GDP. That was the highest level in our peacetime history. One pound in every four was being borrowed, and a former Chancellor and a former Prime Minister have now joined the consensus that spending was too high. The borrowing posed a huge risk to the economic stability and credibility of the United Kingdom, and we have taken many difficult decisions to bring that deficit down—every one contested and opposed.

I can report today, however, that the effort is paying off. The OBR uses a measure of what it calls “underlying public sector net borrowing”, which excludes the impact of the Royal Mail pension scheme and asset purchase facility transfers. I can tell the House that this underlying measure of the deficit, like the other deficit measure, has been revised down substantially since March. From the 11% back in 2010, the underlying deficit now falls to 6.8% this year, instead of the 7.5% the OBR forecast back in March. It then falls to 5.6% next year, then 4.4%, 2.7% and, in 2017-18, 1.2%. By 2018-19, on this measure, the OBR does not expect a deficit at all. Instead, it expects Britain to run a small surplus. These numbers mean that the Government will meet their fiscal mandate to bring the structural current budget into balance and meet it one year early.

Let me turn to the forecasts for cash borrowing on this same underlying basis. At the autumn statement last year, there were repeated predictions that borrowing would go up. Instead, borrowing is down—and down significantly more than was forecast. In their last year in office, the previous Government borrowed £158 billion. This year, we will borrow £111 billion, which is £9 billion less than was feared in March. That falls next year to £96 billion, then down to £79 billion in 2015-16, £51 billion the year after and £23 billion the year after that. So we are set to borrow £73 billion less over the period than was forecast in March. That means that we are borrowing the equivalent of £2,500 less for every household in this country.

In 2018-19, on this cash measure too, the OBR forecasts that the Government will not have to borrow anything at all. Instead, we will run a small cash surplus. Of course, this will only happen if we go on working through our long-term plan, delivering the reductions in the deficit we plan this year, next year and in the three

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years after. If we gave up on the plan now, we would be saddled with a deficit still among the highest in Europe, and the Government side of the House is not prepared to take that risk.

While the deficit remains, it adds to our national debt every year. The OBR today expects debt this year to come in at 75.5% of GDP, which is £18 billion lower than was forecast in March. It rises to 78.3% next year, before peaking at 80% the next year—5% lower than forecast at the Budget. In 2016-17, it then falls, albeit slightly, to 79.9%; then falls again to 78.4% and then to 75.9%. By 2017-18, debt is over £80 billion pounds lower than forecast in March. The supplementary debt target is for debt to be falling in 2015-16. At the Budget, the OBR forecast debt to be falling in 2017-18. It is now forecast to fall in 2016-17, which is one year earlier.

But let me enter this note of caution. The OBR is clear that this is a cyclical improvement. The forecast for the continuing fall in the structural deficit has not improved. The structural deficit is the borrowing that stays behind even when the economy improves. Thanks to our actions, it has fallen from the 8.7% we inherited to 4.4% today—more than in any other major advanced economy. It goes on falling, but no faster than was previously expected because, as we have always argued, the central task of reforming government and controlling spending does not simply dissolve when growth returns. It supports the case we have made all along that economic growth alone was never going to be enough to repair Britain’s broken public finances. An improving economy does not let us off the hook for taking the difficult decisions to make sure that the Government live within their means.

The single most important economic judgement I make today is this: we will not let up in dealing with our country’s debts; we will not spend the money from lower borrowing; we will not squander the hard-earned gains of the British people. The stability and low mortgage rates, the lower deficit and falling borrowing have been hard won by this country, but let us be clear that they could easily be lost. That is why we must work through our plan to secure the British economy for the long term.

So this autumn statement is fiscally neutral across the period. Indeed, I can announce today that we will take three new steps to entrench Britain’s commitment to sound public finances. First, we will bring forward next year an updated charter for budget responsibility and ask Parliament to support it. I can say today that both parties of the coalition have agreed that we must ensure that debt continues to fall as a percentage of GDP, including using surpluses in good years, for this purpose. In other words, this time we will fix the roof when the sun is shining.

We will look to see whether the five-year time horizon of the fiscal mandate could be shorter and even more binding now that the public finances are closer to balance, and we will see how fiscal credibility could be further enhanced by a stronger parliamentary commitment to the path of consolidation already agreed for 2016-17 and 2017-18. The answers will be written into an updated charter for budget responsibility, which will be presented to Parliament a year from now and voted upon.

The second step we take today to entrench Britain’s commitment to sound public finances is this: we will cap overall welfare spending. Welfare budgets were

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completely out of control when we came to office and the number of households where no one had ever worked nearly doubled. We have taken very difficult decisions to bring benefit bills down; we have saved £19 billion a year for the taxpayer. We need to maintain that discipline. The percentage of spending in the UK subject to fixed spending controls is very low by international standards—at just 50%. So from next year, we will introduce a new cap on total welfare spending.

I have had representations that the basic state pension should be included within that cap, but that would mean cutting pensions for those who have worked hard all their lives because the costs on, say, housing benefit for young people had got out of control. That is not fair, so we will not include the state pension, which is better controlled over a longer period. We will also exclude from the cap the most cyclical of benefits for jobseekers. All other benefits—from tax credits to income support to the vast majority of housing benefit—will be included in the cap.

At the beginning of each Parliament, the Chancellor of the day will set the welfare cap for the coming years, and will ask the House of Commons for its support. If the cap is breached, the Chancellor will have to explain why, and hold a vote in the House. The principle is clear: the Government have a responsibility to taxpayers to control their spending on welfare, and Parliament has a responsibility to the country to hold the Government to account for it.

That brings me to our third step. Ultimately, the test of fiscal credibility is whether you are prepared actually to make the difficult decisions that will keep spending under control. Tight discipline means that most Departments are now living well within their set budgets. This year they are expected to underspend by £7 billion, which is testimony to good financial management. We can therefore be confident in reducing the contingency reserve by £1 billion this year, and reducing departmental budgets by a similar amount in the next two years. That will save a further £3 billion in total. The protections for the NHS and schools will apply, and the security and intelligence agencies and Her Majesty’s Revenue and Customs will be exempt. The Barnett formula means that over the next two years, the budgets for Scotland, Northern Ireland and Wales will see a net increase. We will not apply those additional savings to local authorities, because we expect them to freeze council tax next year.

This year, Britain becomes the first G8 country to meet our promise to the poorest in the world to spend 0.7% of our national income on development., but we do not have to increase the budget of the Department for International Development further in order to do that. The effectiveness of the British Government’s aid effort in the Philippines, matched by the generosity of the British public, is a reminder of what marks us out as a nation, and we in this country can be very proud of it.

We are also immeasurably proud of the work of Britain’s armed forces. As they wind down their operations in Afghanistan, the budget that we spend there is also falling fast, so we can reduce the military special reserve by a further £900 million this year while still funding all operational costs. To reflect our society’s debt of gratitude to our servicemen and women and their families, I want to make a further £100 million of LIBOR fines available to our brilliant military charities, and to extend that

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support to those who care for the work of our police, fire and ambulance services. I think the whole House will agree that the terrible events in Glasgow this weekend, and the work that those services are doing right now to cope with the adverse weather conditions, remind us how much we owe to them.

Discipline with the public finances means more than just words. It means making difficult decisions, and being prepared to stick to them. It means using surpluses in good years to keep debt falling, so that we fix that roof when the sun is shining. It means capping welfare to keep it under control, and, when we do want to spend more money, it means finding extra ways in which to pay for it.

One of the biggest single items of Government spending is the basic state pension. I am proud to be in a Government who have introduced a triple lock that ensures a fair and generous increase in the state pension every year for those who have worked hard all their lives. I can confirm that next April the state pension will rise by a further £2.95 a week. That increase, and the other increases that have been made under this Government, mean that pensioners will be more than £800 better off every year. I can announce that we are also going to offer current pensioners an opportunity to make voluntary national insurance contributions to boost their income in retirement, and that we will extend that opportunity to those who reach pension age before the introduction of the single-tier pension. That will help those who have not built up much entitlement to the additional state pension, especially women and the self-employed.

However, we must also guarantee that the basic state pension is affordable in the future, even as people live longer and our society grows older, and the only way in which to do that is to ensure that the pension age keeps pace with life expectancy. The Pensions Bill, which is currently going through Parliament, puts in place reviews of the pension age every five years. We have set the principle that will underpin those reviews. We think that a fair principle is that, as now, people should expect to spend up to a third of their adult lives in retirement. Based on the latest life expectancy figures, applying that principle would mean an increase in the state pension age to 68 in the mid-2030s and to 69 in the late 2040s. The exact dates will be set by the future statutory reviews and in line with the most up-to-date demographic data, of which the next update is published next week. This is one of those difficult decisions that Governments have to take if they are serious about controlling the public finances. Future taxpayers will be saved around £500 billion. Young people will know that our country can afford to give them a proper pension when they retire. That is this generation fulfilling its obligations for fiscal responsibility to the next generation, not saddling them with the debts and the decisions we were not prepared to deal with ourselves.