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BUSINESS, INNOVATION AND SKILLS
03 May 2016
Lead MP
Paula Sherriff
Debate Type
General Debate
Tags
EconomyTaxationEmploymentBrexitForeign AffairsCulture, Media & SportEnergyBusiness & TradeBenefits & Welfare
Other Contributors: 88
At a Glance
Paula Sherriff 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
Asked about the adequacy of broadband availability for businesses in Yorkshire and the Humber, highlighting concerns that Ofcom predicts by 2017 many SMEs will lack superfast broadband.
Julie Elliott
Lab
Q3
Asked about the adequacy of broadband availability for businesses in the north-east and questioned if Government plans show ambition.
Sajid Javid
Con
Responded that business broadband coverage has increased significantly, with 90% now covered, aiming for 95% by 2017. Mentioned the Department's joint review and stated higher than EU-recommended USO.
Paula Sherriff
Lab
Q1
Questioned why many businesses are left behind despite meeting targets, citing Ofcom analysis predicting that 18% of SMEs will lack superfast broadband by 2017.
Julie Elliott
Lab
Q3
Asked how the Government plans to provide physical infrastructure for digital innovation and reiterated concerns about provision for SMEs.
Kevin Hollinrake
Con
Thirsk and Malton
Inquired about BT's compliance with opening up access to its ducts and poles, as recommended by Ofcom.
James Morris
Lab
Q2
Asked about recent steps taken to promote regional growth and create a midlands engine.
Congratulated Leicester City football club on winning the Premier League, highlighting its potential economic benefits for the Midlands region.
Amanda Milling
Con
Discussed issues of access to finance for SMEs in her constituency and asked about measures taken by the Government.
Asked if more could be done on infrastructure investment, noting disparities between London and other regions.
Praised the work of local enterprise partnerships in promoting the economy of the west midlands and questioned roles of LEPs versus the midlands engine.
Discussed concerns over job losses at British Gas Oldbury site, questioning whether BIS is fulfilling its assurance to provide assistance.
Colleen Fletcher
Lab
Q4
Asked about the Department's strategy for funding adult skills provision in FE colleges until 2020.
Nicholas Boles
Con
Wellingborough
Highlighted the age inclusivity of apprenticeships, noting it can be a valuable opportunity for women returning to work or changing careers.
Nicholas Dakin
Lab
Scunthorpe
Asked when guidelines will be published on devolving skills budgets where possible.
Nicholas Boles
Con
Wellingborough
Replied that the timing of guideline publication depends on the progress of devolution deals in respective areas, emphasising local commissioning by authorities for adult skills provision.
Andrew Bridgen
Con
Warwicks N & CVL
Noted that while budget enhancements are welcome, funds should be targeted effectively, suggesting targeting young adults, the low-skilled, and those actively seeking work.
Nicholas Boles
Con
Wellingborough
Agreed with the hon. Member's suggestion but emphasised that local combined authorities are best placed to identify specific needs within their areas.
Asked if further education colleges in Scotland will be exempt from the apprenticeship levy, considering they are major providers of apprenticeships.
Nicholas Boles
Con
Wellingborough
Responded that the apprenticeship levy applies to all UK employers with a payroll bill over £3 million; Scotland's colleges can still press for increased investment in apprenticeships locally.
Critiqued government funding cuts, questioning the paradox of enhancing young people’s English and maths skills while reducing adult basic skills funding. Mentioned a £360 million cut over 2017-2020.
Nicholas Boles
Con
Wellingborough
Clarified the government's position on funding, stating that overall further education funding is being increased by 40% in cash terms, despite last year’s adjustments.
Inquired about steps to encourage businesses to take on apprentices.
Nicholas Boles
Con
Wellingborough
Outlined measures such as removing employer NI contributions for under-25s and introducing an apprenticeship levy, which will increase training budget funding in 2019-20 to £2.5 billion.
Highlighted Silentnight's successful apprenticeship scheme as an example of how companies can benefit from hiring young workers.
Nicholas Boles
Con
Wellingborough
Emphasised that apprenticeships are beneficial not just for the training they receive but also because they add value to employers by bringing energy and innovation.
Expressed concerns about readiness of systems for the apprenticeship levy, with calls from her party and others for a delay or review before implementation.
Nicholas Boles
Con
Wellingborough
Stated that delays are not an option as previous governments failed to address skills investment issues; detailed guidance has been published recently, and the levy will proceed in April 2017.
Congratulated on the success of the Care Academy in his constituency for providing apprenticeships for health professions.
Nicholas Boles
Con
Wellingborough
Welcomed the initiative and encouraged more similar programmes to address skills shortages in sectors like care and healthcare.
Questioned about staff reductions at BIS working on the apprenticeship programme, asking for an assessment of capacity to meet targets.
Nicholas Boles
Con
Wellingborough
Explained that staff numbers will decrease as a new independent institute is set up under employer control to manage the levy and its operations.
Praised local businesses for taking on apprentices, suggesting more cultural change is needed to encourage even greater uptake among older individuals.
Nicholas Boles
Con
Wellingborough
Agreed that there's a misconception about apprenticeships only being suitable for school leavers; they offer opportunities at all stages of life and career.
Asked about discussions on support and guidance for businesses to employ people with autism, and inquired about specific programmes to reduce the employment gap for autistic individuals.
George Freeman
Con
Mid Norfolk
Responded affirmatively, noting substantial investment through the Disability Confident campaign and over £100 million annual spend on Access to Work scheme. Discussed engagement with employers and meetings with organisations like Autism UK.
Further questioned about specific programmes for closing the employment gap for autistic individuals, requesting disaggregated data on progress.
George Freeman
Con
Mid Norfolk
Acknowledged the importance of closing the gap, continuing to invest in this area and promoting access to work through the Disability Confident campaign without setting quotas.
Proposed working with ministers on coding initiatives within Cornwall for people suffering from autism, highlighting suitability for computer programming roles.
George Freeman
Con
Mid Norfolk
Agreed to work collaboratively and commended the hon. Member’s initiative in promoting skill-based employment opportunities for those with autism.
George Freeman
Con
Mid Norfolk
Stated that the Government invest £100 million annually in Access to Work scheme, supporting 36,000 people with disabilities. Emphasised commitment to giving opportunities for individuals on the autism spectrum.
Discussed The Economist's article about wasted talents of people on the autistic spectrum and proposed meeting a cross-party delegation to discuss how businesses can mark the number of people on the autism spectrum.
Nick Brown
Q7
Asked for an assessment of the potential effect of UK withdrawal from the EU on digital industries, highlighting 25,000 jobs directly involved in the sector.
Asserted that leaving the EU would be disastrous for Britain’s digital industries and stressed the importance of staying part of the digital single market.
Critiqued the remain campaign's fear-based message as damaging to investment and questioned if the leave campaign was justified in their fears about EU membership.
Chi Onwurah
Lab
Newcastle upon Tyne Central
Highlighted recent EU measures benefiting British businesses and queried how long it would take to renegotiate international digital agreements post-Brexit.
Asked for assessment of threats to UK steel industry, particularly regarding the timing of potential sales and buyer considerations.
Sajid Javid
Department for Business, Energy and Industrial Strategy
Agreed with the hon. Gentleman's view on steelmaking in Wales and mentioned that management buyout proposals are under careful consideration. He also stated that procurement rules have been changed to take economic and social factors into account, making government contracts more visible to SMEs.
Mike Wood
Con
Kingswinford and South Staffordshire
Asked what action the Government is taking to help UK steel suppliers win government contracts and ensure that small and medium-sized enterprises in the supply chain benefit from these opportunities.
Critiqued the belated support from the UK Government for Welsh steelmaking, questioning whether Tata's intention is genuinely to be responsible given the time frame proposed. He also mentioned Carwyn Jones' immediate package of support in Wales following Tata’s announcement.
Wendy Morton
Con
Aldridge-Brownhills
Asked about steps being taken by the Department to support people who want to start their own businesses, specifically mentioning local success stories but also questioning the challenges in the early years of running a business.
Discussed initiatives such as the Start-up Loans scheme and cuts in business rates aimed at supporting new and small businesses. She mentioned that over 37,000 loans worth more than £210 million have been provided through the Start-up Loans scheme.
Alison McGovern
Lab
Birkenhead
Asked who should be blamed for the dereliction in her constituency's high street, questioning whether it was Tory Ministers who withdrew from regeneration or absentee landlords who purchased property but are now nowhere to be seen.
Vicky Foxcroft
Lab
Lewisham North
Inquired about steps the Government is taking to increase take-up of apprenticeships among people with disabilities, care leavers and other disadvantaged groups.
Asked if the Secretary of State was aware that the Construction Industry Training Board (CITB) based in Bircham Newton has been excellent at encouraging people with disabilities to take up apprenticeships, and questioned whether the CITB will have sufficient funding when the apprenticeship levy is introduced.
Ruth Cadbury
Lab
Brentford and Isleworth
Asked what discussions had been held about the effect on small and medium-sized enterprises of proposed changes to filing tax returns, expressing concerns raised by a constituent over increased work, expense and worry for no benefit.
Kit Malthouse
Con
North West Hampshire
Suggested that introducing the digital system on a voluntary basis might be sensible due to 60% of small businesses not currently operating digital accounting systems.
Bill Esterson
Lab
Sefton Central
Stated that the Minister has failed to explain how the change will help businesses, arguing that the requirement for a summary of income and expenses each quarter represents an increase in bureaucracy and costs.
Stressed the importance of weekly accounts for self-employed individuals and supported the change to annual returns as a way to ensure businesses stay up-to-date with their financial situation.
Q13
Asked about steps being taken to reduce business regulation. Raised concerns about EU regulations costing British business £22 billion annually and suggested leaving the EU as a solution.
Sajid Javid
Con
Announced commitment to cut £10 billion of business red tape through the business impact target. Addressed concerns about EU regulation costs and emphasised benefits of single market membership. Discussed efforts to improve access to finance for small businesses and provided updates on departmental responsibilities.
Andrew Gwynne
Ind
Gorton and Denton
Asked what more the Government is doing to ensure small businesses have a range of financial products to support their operations. Highlighted issues with small businesses only applying for finance once and often not seeking alternative lenders.
Q15
Asked about recent assessments on productivity levels and criticised the Government's record on productivity, suggesting it has been one of failure despite launching a 'deeply underwhelming' plan last July.
QT1
Asked if remaining in the EU is vital for British trade, particularly in automotive and aerospace industries. Questioned whether Brexit would impact business opportunities negatively.
QT6
Supported proposals to allow waiters and waitresses to receive tips directly rather than through restaurant owners, suggesting the House of Commons should also lead by example in its own practices.
Angela Eagle
Lab
Wallasey
Critiqued Sir Philip Green's stewardship of BHS and questioned the fairness of pension fund liability. Raised concerns about the collapse of BHS and asked for a public policy review into responsible ownership.
QT10
Asked what measures are being taken to encourage British scientists in tackling diseases such as dementia through innovative research.
Expressed concern over Government guidance on the use of Government-funded research for lobbying and asked for clarification on grants exempt from anti-lobbying clauses.
Kelly Tolhurst
Con
Rochester and Strood
She is proud of the large number of apprenticeships in her constituency, specifically mentioning BAE Systems' commitment to higher level apprenticeships.
He praised Kelly Tolhurst's constituency for its remarkable performance and informed that there are grants available for smaller employers offering their first five apprenticeships.
Diana R. Johnson
Lab
Kingston upon Hull North
She raised concerns about the BHS situation, similar to Comet four years ago, asking for a report on Comet and its scandal to be published.
He acknowledged Diana Johnson's question and stated he would look into it closely.
Seema Kennedy
Con
Wythenshawe and Sale East
She inquired about the potential withdrawal of accreditation for Persian GCSE and A-level, given new trade links with Iran, to which Sajid Javid responded positively.
Mike Kane
Lab
Wythenshawe and Sale East
He welcomed BHS administrators entering consultation and questioned if there should be enhanced employee rights in companies law.
He advised against jumping to conclusions about the pension fund deficit and said independent regulators would take a look at it.
Andrea Jenkyns
Con
Thirsk and Malton
She asked what the Department is doing to support leading professions in working with schools and universities for social mobility.
He informed that they have established a Careers & Enterprise Company, provide students more information on course choices, introduced degree apprenticeships and are focusing on access to top professions in work with universities.
Liz McInnes
Lab
Blackpool North and Cleveleys
She questioned the responsibility for filling BHS pension fund black hole, whether it should be taxpayers or company owners who received dividends while the pension fund was in trouble.
He mentioned the Pension Protection Fund and stated that independent regulators would examine why a pension fund may need recourse to the PPF.
Martin Vickers
Con
Brigg and Immingham
He invited the Secretary of State or Skills Minister to visit HCF CATCH training facility in his constituency, which has provided 800 apprenticeships over ten years.
He accepted Martin Vickers' invitation and mentioned that he would be visiting the training facility.
Angela Rayner
Lab
Ashton-under-Lyne
She raised concerns about Tata's outsourcing of jobs from British Airways, affecting national security and asking if the Government will intervene to protect jobs.
He offered to look into the matter closely if she provided more detailed information.
David Nuttall
Con
Bury North
He questioned why 100% of British businesses have to comply with EU regulations when less than 10% export to the EU.
He highlighted the importance of the single market, which is the largest in the world and brings benefits for growth and jobs.
Yasmin Qureshi
Lab
Bolton South East
She asked Sajid Javid to reconsider scrapping bursaries for nurses and mentioned the impact it would have on mature students, BAME communities, and disadvantaged groups.
He agreed with Yasmin Qureshi's concerns regarding nurse training and discussed a new nursing apprenticeship being developed to offer people qualification while working and earning.
Richard Fuller
Con
North East Bedfordshire
He inquired about the responsibilities of advisers in company transactions after BHS was sold, asking for templates and responsibilities to be looked at carefully.
He reassured Richard Fuller that he would look into it closely and mentioned an investigation by the Insolvency Service starting today.
Government Response
EconomyTaxationEmploymentBrexitForeign AffairsCulture, Media & SportEnergyBusiness & TradeBenefits & Welfare
Government Response
Responded to queries on broadband coverage, progress of growth deals and midlands engine investment, job support efforts, and infrastructure plans. Addressed concerns about UK steel industry's challenges due to global overproduction and reduced demand. Discussed measures taken by the Government such as lowering electricity prices, tackling unfair trade practices, updating procurement guidance, and introducing flexibility in emissions regulations. Government committed to cut £10 billion of business red tape through the business impact target. Addressed concerns about EU regulation costs, emphasised benefits of single market membership, and discussed efforts to improve access to finance for small businesses. The Secretary of State provided responses to multiple questions, emphasising the importance of apprenticeships, regulatory oversight for pensions, support for social mobility initiatives, addressing concerns about outsourcing and trade with Iran.
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