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BUSINESS, INNOVATION AND SKILLS
02 February 2016
Lead MP
John Pugh
Debate Type
General Debate
Tags
EconomyTaxationEnergyBusiness & Trade
Other Contributors: 114
At a Glance
John Pugh raised concerns about business, innovation and skills in the House of Commons. A government minister responded. Other MPs also contributed.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
Opened the debate
The UK automotive industry needs specific encouragement and incentives for hydrogen fuel cells in addition to the focus on driverless cars. What steps are being taken to ensure that British car manufacturers do not engage in practices like those seen with Volkswagen, particularly concerning emissions testing?
Sajid Javid
Con
Q1
The UK automotive industry is committed to developing next-generation technologies and the Government is providing almost £1 billion in funding. Specific initiatives include £20 million for driverless car projects, support for green energy and greener cars, and collaboration with European Commission for real emissions testing.
Philip Hollobone
Con
Q20
Foreign direct investment in the British automotive industry has been at record levels since 2013 despite concerns over EU membership. The auto industry had a record year with more than £64 billion of turnover and 80% of cars being exported.
Geraint Davies
Lab
Q9
The UK Government should ensure that manufacturers do not install defeat devices to cheat emissions testing. The Secretary of State is working with European Union colleagues to introduce real emissions testing and crack down on bad practices.
Q10
The UK automotive industry should support the development of autonomous-drive cars, as Nissan in Paddington, Jaguar Land Rover, and Toyota are leading in this technology. The Government is funding research and development projects for driverless car technology.
Rachael Maskell
Lab Co-op
York Central
The recent floods have a significant impact on the entire local business community, which requires a comprehensive recovery package including support to maintain customer base and trade expediently. The Secretary of State should attend a roundtable with flood victims.
John Stevenson
Con
Q15
The floods have affected not just businesses but also community organisations such as sports clubs in Carlisle. Local authorities should provide support for both businesses and other organisations impacted by the floods.
Bill Esterson
Lab
Sefton Central
Many businesses are struggling to receive promised flood recovery funds, with average payouts well below the expected £5,000. The Secretary of State should ensure that all affected businesses receive adequate support from insurance companies.
Nigel Adams
Con
Q19
Lessees in flooded properties face challenges due to landlords' disinterest in engaging with government support systems. Businesses should be eligible for grants and business rate holidays regardless of ownership status.
Fiona Bruce
Con
Q3
The Government's start-up loans scheme has provided more than 35,000 loans worth over £192 million. Growth hubs are a key part of the support network for small businesses.
Derek Twigg
Lab
Widnes and Halewood
Smaller firms with fewer than 50 employees, including start-ups, struggle to secure long-term loans from banks. The Minister should discuss better lending practices for these smaller businesses.
Q27
Small businesses in rural areas require improved broadband connections for online marketing and business operations. The Government is coordinating efforts with the Department for Culture, Media and Sport to ensure superfast broadband access.
Lisa Cameron
Edinburgh East
Lab
Asked for additional funding and support for persons with disabilities to start small business enterprises. Sought a meeting with the Minister.
Anna Soubry
Louth and Horncastle
Con
Agreed to meet the all-party parliamentary group for disability to discuss better funding for disabled entrepreneurs to start businesses.
Kit Malthouse
North West Hampshire
Con
Asked the Minister to seek in her Budget submission to lift restrictions on family investment in companies under the enterprise investment scheme and the seed enterprise investment scheme.
Anna Soubry
Louth and Horncastle
Con
Acknowledged that many small business owners rely on support from their parents or other family members, but did not commit to changing the rules.
Alison McGovern
Wirral South
Lab
Noted that start-up businesses in Merseyside often face high business rates and asked for representations made to the Treasury ahead of the Budget for relief on these costs.
Anna Soubry
Louth and Horncastle
Con
Confirmed a full review of business rates is underway, emphasising that views about business rates are consistently communicated to the Treasury.
Angela Smith
Penistone and Stocksbridge
Lab
Inquired about recent steps taken by the government to support the steel industry.
Stephen Doughty
Cardiff South and Penarth
Lab/Co-op
Asked for information on recent steps taken by the government to support the steel industry.
Sajid Javid
Bromsgrove
Con
Provided details of several actions being taken to help the steel industry, including cutting energy costs and updating procurement guidance.
Angela Smith
Penistone and Stocksbridge
Lab
Questioned the Secretary of State's commitment in light of previous statements made by the Foreign Office on China's status as a market economy and MoD’s record-keeping practices.
Sajid Javid
Bromsgrove
Con
Responded that an emergency meeting at the European Council was called to address unfair trade issues and that a proposal on market economy status would be carefully scrutinised.
Stephen Doughty
Cardiff South and Penarth
Lab/Co-op
Expressed concern over lack of record-keeping practices in the Ministry of Defence regarding steel procurement.
Sajid Javid
Bromsgrove
Con
Defended new procurement rules that allow for greater use of British steel, referencing examples such as Queen Elizabeth-class aircraft carriers and Crossrail project usage.
David Davies
Monmouth
Con
Noted the high energy taxes paid by steel companies which are used to subsidise wind farms made from imported steel. Suggested policy changes.
Sajid Javid
Bromsgrove
Con
Agreed on the importance of reducing energy costs for steel companies and mentioned a full exemption had been implemented following industry feedback.
Iain Wright
Hartlepool
Lab/Co-op
Questioned information provided by the Minister regarding Sheffield Forgemasters' capacity to supply components necessary for nuclear power plants.
Sajid Javid
Bromsgrove
Con
Clarified that Forgemasters faces challenges meeting all orders for different types of steel and encouraged further dialogue with the company.
Hannah Bardell
Livingston
SNP
Pressed the government to produce a coherent strategy for an industrial plan regarding manufacturing sector, referencing recent job losses at Tata Steel in Scotland.
Sajid Javid
Bromsgrove
Con
Confirmed strategies and actions taken by the government, including cutting energy costs and providing flexibility on EU emissions regulations for steel industry support.
Kevin Brennan
Cardiff West
Lab
Asked for clarification regarding Sheffield Forgemasters' capacity to supply components necessary for nuclear power plants, questioning previous statements made by the Small Business Minister.
Sajid Javid
Bromsgrove
Con
Stated that the Small Business Minister was accurate in her statement and encouraged further dialogue with Forgemasters to address concerns.
Jim Cunningham
Coventry South
Lab
Asked for an estimate of likely change in number of adult learners between 2016-2020, and sought reassurances about funding cuts affecting local colleges.
Nicholas Boles
Wellingborough
Con
Reported that overall funding for adult learners will increase by 30% in real terms between 2016-2020 and reiterated that the Chancellor increased, rather than cut, funds.
Jim Cunningham
Coventry South
Lab
Expressed concerns over budget cuts affecting local colleges and requested assurances on funding maintenance.
Nicholas Boles
Wellingborough
Con
Reassured that funds for adult learners were not cut in the spending review, instead being increased to its highest level ever recorded.
Kevin Foster
Torbay
Con
Emphasised the need to understand local needs such as industry demands when planning skills provision and employment opportunities.
Nicholas Boles
Wellingborough
Con
Agreed with the importance of understanding local needs, mentioning plans for greater local involvement in commissioning adult skills provision.
Steve McCabe
Birmingham Selly Oak
Lab
Asked about the government's response to a 2014 Foresight report on lifelong learning and continuous training by Dr Martin Hyde and Professor Chris Phillipson.
Gordon Marsden
Lab
The position for non-apprenticeships in higher education and further education is not looking good. The number of adult learners in HE has decreased by 42%, and scrapping maintenance grants will impact them negatively. There are no concrete measures to address this decline.
Nicholas Boles
Con
Disagrees with the concern over non-apprenticeships, emphasising that apprenticeships provide opportunities for adult learners and the extension of student finance to part-time learners. Apprenticeships offer better alternatives than any other option.
Stephen Metcalfe
Con
Asks about steps being taken to increase participation in STEM subjects in higher education.
Matt Warman
Con
Also asks about steps being taken to increase the number of students studying STEM subjects in higher education.
Jo Johnson
Con
Record numbers of students are securing places on science, technology, engineering and maths courses this year at universities. The decision to end student number controls means there is no longer any cap on the number of people wishing to study STEM subjects.
Stephen Metcalfe
Con
Celebrates the work and role science and discovery centres play in inspiring young scientists and engineers. Asks about plans to improve their reach, raise awareness of their existence, and support their important work.
Jo Johnson
Con
Announces a £30 million Inspiring Science capital fund in partnership with the Wellcome Trust. This will allow science centres to make big investments in cutting edge exhibitions and education spaces, reaching all sorts of people who think science is not for them.
Matt Warman
Con
Many small businesses need STEM graduates and asks how the Government are connecting these graduates with small businesses and encouraging entrepreneurship.
Jo Johnson
Con
Supports degree apprenticeships, particularly in STEM occupations. The productivity plan aims to increase collaboration between universities and business, with 60% of work placements for students on STEM courses being in small businesses.
Debbie Abrahams
Lab
Oldham East and Saddleworth
Concerned about cuts to the disabled student’s allowance and asks what is the estimate of the reduction in the number of disabled students doing STEM subjects due to this cut.
Jo Johnson
Con
The disabled student’s allowance continues to exist, available to all students who need it. Universities must step up under the Equality Act 2010 to make their learning environments fit for disabled students.
Yvonne Fovargue
Lab
Concerned about a proposed annual charge of £1,000 for every skilled worker brought into the UK from outside Europe and asks what effect this would have on the science community and high-tech businesses.
Jo Johnson
Con
Through tier 1 exceptional talent visa, highly talented scientists are provided many opportunities to work in the UK and contribute to the economy.
Carol Monaghan
SNP
Asks what discussions have been had with the Scottish Government on implementation of the apprenticeship levy.
Nicholas Boles
Con
A working group was set up last October to plan for the apprenticeship levy, and a meeting will take place in Edinburgh this Thursday with Scottish Finance Ministers to discuss implementation details.
Carol Monaghan
SNP
Asks how Scotland’s share of funds raised from the apprenticeship levy will be calculated.
Nicholas Boles
Con
The system of Barnett consequentials will ensure that Scotland receives a share of tax raised across the UK to support apprenticeships, among other policies the Scottish Government want.
Stephen Timms
Lab
East Ham
Noting the Minister has underlined the advantages of apprenticeships for older people but is concerned that younger people are taking up fewer apprenticeships now compared to three years previously. Asks what measures are being taken to draw young people’s attention to the benefits of apprenticeships.
Nicholas Boles
Con
While apprenticeships offer fantastic opportunities for young people, employers may not always feel comfortable taking on a 16-year-old. Ensuring young people get an education in college that enables them to make the best of an apprenticeship whenever they do one is important.
Margaret Ritchie
SDLP
Concerned about a dearth of apprenticeships in the catering industry and asks how the apprenticeship levy will assist recruitment in this sector.
Nicholas Boles
Con
Larger employers in the catering industry paying the levy have an incentive to spend the money on apprenticeships. Piloting an apprenticeship lasting 12 months out of, say, 15 or 16 months is being considered for industries with seasonal work.
Hannah Bardell
SNP
Concerned about the impact of the apprenticeship levy on oil and gas industry businesses that are already paying levies to training bodies. Asks for a commitment to provide information by a set date.
Nicholas Boles
Con
Meets regularly with business groups, including major oil and gas companies, to discuss the apprenticeship levy. Will meet the hon. Lady and industry representatives in March to reassure them that the apprenticeship levy is an opportunity not a threat.
Asks about recent steps taken to promote regional growth, particularly in the midlands.
Sajid Javid
Con
Launched the midlands engine prospectus setting out a programme of action aiming to add an extra £34 billion to the midlands economy by 2030. The first-ever midlands business trade delegation overseas will be led later this year.
Requests more support for manufacturing businesses in his constituency, such as Invotec, to export better abroad.
Sajid Javid
Con
UK Trade & Investment has provided support for 250 businesses in his hon. Friend’s constituency, including Invotec. A whole-of-government approach to exports will be taken and a midlands business trade delegation overseas led.
Tristram Hunt
Lab
Stretford and Urmston
A key driver of any midlands engine will be Goodwin Engineering in my constituency. This is a world-class steel foundry business hit hard by the Government’s massive incompetence over steel policy. It is very keen for a swift decision to be made on the Swansea bay tidal lagoon. Can we have news on that decision and, more broadly, something approaching an industrial policy?
Sajid Javid
Con
Brentford and Isleworth
The hon. Gentleman can have news—but not today. These are the sort of decisions that we need to consider carefully. When it comes to major infrastructure, he will be pleased to know that the Government’s infrastructure plan involves over £90 billion and that we are going ahead with it.
Edward Argar
Con
Melton
One of the key drivers of regional growth in the midlands has been the success of new small businesses, which rely on getting access to telecommunications as swiftly as possible. Does my right hon. Friend share my concern about the potential impact on midlands growth due to the length of time some businesses have to wait for telecoms companies to connect them? Will he press those companies to sharpen up and speed up their act?
Valerie Vaz
Lab
Walsall North
One hundred and twenty thousand companies in the west midlands are linked to the steel industry. Will the right hon. Gentleman say what steps he is taking to preserve those skills for future growth?
Andrew Bridgen
Con
North West Leicestershire
I can assure the House that the midlands engine is firing on all cylinders, but it does need fuel in the tank. Will the Secretary of State confirm that more than £2 billion was raised in venture capital in the UK last year, which was up 50% on the year before?
Rob Marris
Lab
Wolverhampton South West
The hon. Member for Tamworth (Christopher Pincher) asked about the creation of a midlands engine. I can assure the Minister that thousands of such engines are being built by Jaguar Land Rover in Wolverhampton, just outside my constituency. The apprenticeship levy is very welcome, although there are still some kinks to be ironed out.
Barry Sheerman
Lab
Huddersfield
What steps he is taking to support start-up manufacturing businesses.
George Freeman
Con
Mid Norfolk
As my right hon. Friend the Chancellor has made clear, the Government continue to turn around the historic decline in manufacturing that took place under the last Labour Government. In the autumn statement and in the speech that my right hon. Friend is making today, we are setting out our commitment to manufacturing.
Sammy Wilson
DUP
East Antrim
Many barriers, including energy costs and regulatory burdens, prevent manufacturing businesses from starting up. What discussions has the Minister had with the Chancellor about his policy of requiring businesses to return information about taxes to HMRC four times a year?
Jack Lopresti
Con
Filton and Bradley Stoke
What steps he is taking to raise the status of apprenticeships among employers.
Nicholas Boles
Con
Wellingborough
We are giving employers the opportunity to design high-quality apprenticeships that meet their needs, and more than 1,300 employers are already involved. We are also establishing the employer-led Institute for Apprenticeships to improve standards and safeguard quality.
James Berry
Con
Kingston and Surbiton
Does my hon. Friend the Minister welcome the 2,580 apprentices that have been started in my constituency since 2015, and will he join me in welcoming the “100 in 100” campaign of my hon. Friend the Member for Stratford-on-Avon (Nadhim Zahawi), which encourages MPs to go out to their employers in their constituencies and get them to take on apprentices?
Scott Mann
Con
Teignbridge
The six Cornish MPs are also leading on this and my hon. Friend the Member for Truro and Falmouth (Sarah Newton) will be launching the “100 in 100” campaign in Cornwall.
Rishi Sunak
Con
Richmond and Northallerton
Proposes a UCAS for apprenticeships pilot in his constituency to make it easy for small businesses to take on school-leavers, aiming to end the divide between university applicants and those seeking apprenticeships.
Supports Rishi Sunak's initiative, praising the MP for creating this scheme shortly after joining Parliament and indicating a willingness to monitor its success before considering national rollout.
Carolyn Harris
Lab
Neath and Swansea East
Asks about recent discussions with shop workers on Sunday trading laws; expresses concern that small traders and USDAW shop-floor workers might be negatively impacted by changes in these laws.
States officials met USDAW, the TUC, and GMB in August regarding Sunday trading laws. Supports devolving power to local authorities for decision-making based on their specific needs, highlighting that many Labour councils welcome this approach.
Suggests relaxing Sunday trading laws quickly given previous relaxation ahead of the Olympics and lack of negative consequences in Scotland without such restrictions.
Asks for a statement on Sajid Javid's departmental responsibilities regarding high-end manufacturing, growth figures, and employment opportunities.
Highlights Britain’s success in high-end manufacturing with record aircraft deliveries, increased car production by Jaguar Land Rover, and growing manufacturing output. Discusses Lord Heseltine's work on regenerating the redundant SSI steelworks site and mentions his constituency's reduction in unemployment.
Andrew Murrison
Con
South West Wiltshire
Expresses frustration with poor broadband speeds affecting small businesses, particularly in rural areas, and suggests Ofcom might need to look into splitting BT and Openreach or referring the matter to CMA.
Angela Eagle
Lab
Wallasey
Questions whether Google tax deal reached by Chancellor is fair and proportionate. Criticises deal's impact on small businesses and its perceived unfairness.
Inquires about specific steps the Government is taking to ensure the future sustainability of Tata Steel plant at Port Talbot, emphasising the importance of Welsh steel in government projects.
Newcastle upon Tyne North
Questions how delaying a decision on UK airport capacity supports the Government's target to treble exports by 2020.
Asks about support given to small businesses across the north-west, highlighting their significance in the economy.
Nicholas Dakin
Lab
Scunthorpe
Questions the Government's plans for ensuring procurement guidelines impact is properly delivered and followed by all Departments and contractors.
Suella Braverman
Con
Fareham and Waterlooville
More than 4,000 people have started an apprenticeship since 2010 in Fareham. Will the Secretary of State join me in congratulating my hon. Friend the Member for Stratford-on-Avon on his work in this area and in encouraging people from Fareham to attend my apprenticeships fair on 12 February at Fareham College?
I would spend every day at an apprenticeships fair. I was in Carlisle last week with my hon. Friend the Member for Carlisle (John Stevenson) and urge everyone in Fareham to attend the one set up by my hon. Friend the Member for Fareham.
Carolyn Harris
Lab
Neath and Swansea East
Tidal lagoons present a crucial industrial opportunity for the Northern Powerhouse, says Yorkshire’s Allerton Steel. Port Talbot’s Fairwood Fabrications Ltd says rare opportunities to redeploy skills should be seized before being lost. Does the Minister agree that when British steel industry identifies new market around recovery, it is time the Government sat up and listened?
Five asks were made for steel industry and we have delivered on four of those with fifth under review. More jobs lost under Labour Administrations than Conservative Governments.
Oliver Dowden
Con
Hertsmere
Proposed tube strike this weekend will add misery to Monday morning commute based on mandate from June 2015. Should not be possible to call a strike on the basis of an out-of-date mandate.
We are legislating to stop strikes based on outdated mandates. Labour wants to oppose this measure and support tube strikes that will prevent people from getting to work over weekend.
Chris Stephens
11:30:00
Q8
Will Ministers confirm recent meetings with devolved Administrations on proposed anti-Trade Union Bill? Can they confirm proposals, particularly those on facility time and check-off, have no support across public sector?
Sorry to see another party standing up for illegitimate strikes. Conservatives will be standing up for working people.
Richard Fuller
Con
North Bedfordshire
Despite Government’s excellent record on apprentices, disabled people still face significant barriers. Alliance for Inclusive Education has raised concerns about requirements for maths and English. Will Minister review these concerns?
Invite my hon. Friend to meet me along with the people who have such concerns. It is important that we get this right.
Andrew Gwynne
Ind
Gorton and Denton
Report from Centre for Cities shows large number of Britain’s towns and cities are low-skill, low-wage economies. What is Secretary doing to ensure there is joined-up thinking across Government on tackling education, skills and transport links?
Skills are key issue in helping create jobs and increase productivity. Introduced apprenticeship levy and putting forward plans.
Nadhim Zahawi
11:30:00
Thank Minister for Skills supporting the apprenticeship awards at Grosvenor House last week. We gave out awards to small and large businesses and brilliant apprentices. Next year, public sector could show support with permanent secretaries at next year’s awards.
Mr Speaker, you will have noticed that my hon. Friend has a badge shaped like a capital A on his lapel, which stands for apprenticeship ambassador.
David Simpson
11:30:00
Does the Minister agree that practice of cash retention, especially within construction industry, should cease?
We are having a review and I have undertaken to do everything I can to bring it forward. He knows that we need to take a modern look at an outdated practice.
Robert Jenrick
Reform
Newark
With US presidential elections exciting audiences, transatlantic free trade deal unlikely under Obama Administration. Talks with EU and India resumed after being stalled for two years. Will Minister welcome resumption of talks and do everything to secure a deal this year?
George Freeman
Con
Mid Norfolk
My hon. Friend makes an excellent point. TTIP deal worth £10 billion to economy, surprising that Opposition are not supporting it more loudly.
Tom Blenkinsop
11:30:00
With multiple job losses in Hartlepool and Teesside, may I ask Minister to meet me and other Tees MPs to discuss future of SSI site? Between 1987 and 1992, Tory party sacked 20,000 steel workers.
Sajid Javid
11:30:00
More than happy to meet the hon. Gentleman and colleagues. We have taken all action to help steel industry. Production halved under Labour, number of employees fell by thousands.
Louise Haigh
Lab
Sheffield Heeley
Will Secretary confirm that in a briefing on Friday to BIS workers whose jobs are at risk in Sheffield, main reason given for closing office was 'because phones and computers don’t work'? Is he seriously saying Department responsible for sending people to space cannot find a way to communicate properly? Lack of empathy shown.
Sajid Javid
11:30:00
No one takes these decisions lightly. Of course, families are affected and we need to do everything possible to help. We have obligation to taxpayers to spend money wisely.
Government Response
The UK automotive industry has been supported through various initiatives including £1 billion in funding, support for driverless car projects, collaboration with the EU on emissions testing, and record levels of foreign investment. Flood recovery efforts include a £50 million fund to assist affected businesses across England. Provided details of several actions being taken to help the steel industry, including cutting energy costs, tackling unfair trade, updating procurement guidance, introducing flexibility in emissions regulations, reviewing business rates. The hon. Lady is right to raise the issue of skills in that industry. The first thing is to do everything we can to help it. Of course, the crisis has inevitably led to job losses, but the measures I referred to earlier will help to protect some of those jobs. We are also talking to a number of companies in the supply chain to see what we can do with skills training to ensure that those skills are transferable. Responds to various queries, highlighting government initiatives in manufacturing growth, broadband speeds, Google tax deal fairness, steel industry support, airport capacity decision, and SME assistance. Government is legislating to stop strikes based on outdated mandates. Standing up for working people.
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