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I think that is the kindest thing that anybody has ever said to me.
The Secretary of State fully appreciates that uncertainty lasting for months and years will drain business investment away from Britain. In our Select Committee this morning, Funding Circle told us that an £100 million investment deal with a European consortium will now not go ahead—it has been pulled, and it will not be the only one. Today’s round table is a welcome gesture, but in the face of the current unprecedented uncertainty, what tangible actions is the Secretary of State putting in place to maintain and stimulate inward investment, maintain that funding gap, and steady business nerves?
I think that is the kindest thing that anybody has ever said to me.
The Secretary of State fully appreciates that uncertainty lasting for months and years will drain business investment away from Britain. In our Select Committee this morning, Funding Circle told us that an £100 million investment deal with a European consortium will now not go ahead—it has been pulled, and it will not be the only one. Today’s round table is a welcome gesture, but in the face of the current unprecedented uncertainty, what tangible actions is the Secretary of State putting in place to maintain and stimulate inward investment, maintain that funding gap, and steady business nerves?
It is good to see some leadership on business issues on the Labour Benches. The hon. Gentleman makes an important point. Today’s round table is not a gesture; it is about genuinely listening to businesses and businessmen and women about the issues that they face, and about how to take advantage of the opportunities that will be created. He will know that nothing changes for at least a couple of years, which will give us time to plan for the future, including for inward investment opportunities and new trade opportunities. I would be happy to meet him and discuss that issue further.
I thank the Secretary of State for attending the Thursday sitting of the Select Committee, which is conducting an inquiry on steel. He may recall that I asked him about the maintaining of confidence. There is growing concern that firms are not supplying to Tata facilities because they fear that the steel business may go into administration and they will not be paid, and credit insurance is being withdrawn. Businesses that supplied SSI do not want to get their fingers burnt twice, and customers, especially those with long-term horizons, are looking to Tata’s competitors for alternative provision. What further firm steps will the Government take on the matter of credit insurance to ensure that word goes out, loudly and with clarity, that this is a viable operation and firms can supply to and buy from Tata with confidence?
I thank the Secretary of State for attending the Thursday sitting of the Select Committee, which is conducting an inquiry on steel. He may recall that I asked him about the maintaining of confidence. There is growing concern that firms are not supplying to Tata facilities because they fear that the steel business may go into administration and they will not be paid, and credit insurance is being withdrawn. Businesses that supplied SSI do not want to get their fingers burnt twice, and customers, especially those with long-term horizons, are looking to Tata’s competitors for alternative provision. What further firm steps will the Government take on the matter of credit insurance to ensure that word goes out, loudly and with clarity, that this is a viable operation and firms can supply to and buy from Tata with confidence?
I thank the hon. Gentleman for his Committee’s work on this matter, which is helpful to the debate and enables us to look more closely at the position. As for the question of suppliers to Tata, and, indeed, large customers, I have already written to, or asked officials to write to, all the suppliers and customers of Tata Steel strip products. We have contacted the largest suppliers and the largest customers, as has Tata, which has given its reassurance on this point as well. However, I think that the main reassurance I can give relates to the approach of the Government, who are doing all that they can to secure a long-term, viable future for the business.
I welcome National Apprenticeship Week, which gives us a great opportunity to praise all apprentices, and to promote apprenticeships as a means of securing training skills and jobs for the future.
In a statement on apprentices last Thursday, the Minister of State said:
“We do not expect all companies that pay the levy to use up all the money in their digital accounts”.—[Official Report, 10 March 2016; Vol. 607, c. 454.]
What does that mean in practice? Can large and small companies take up any unspent levy? What estimate have the Government made of the number of companies involved, and of the proportion and value of the levy that will not be used by larger firms?
I welcome National Apprenticeship Week, which gives us a great opportunity to praise all apprentices, and to promote apprenticeships as a means of securing training skills and jobs for the future.
In a statement on apprentices last Thursday, the Minister of State said:
“We do not expect all companies that pay the levy to use up all the money in their digital accounts”.—[Official Report, 10 March 2016; Vol. 607, c. 454.]
What does that mean in practice? Can large and small companies take up any unspent levy? What estimate have the Government made of the number of companies involved, and of the proportion and value of the levy that will not be used by larger firms?
As ever, the Chair of the Select Committee has asked some penetratingly good questions, but I fear that I must ask him to wait until tomorrow, when he will hear more, as he will during the next few weeks.
To ask the Secretary of State for Business, Innovation and Skills, what assessment his Department has made of the effect of the apprenticeship levy on the training requirements of small and medium-sized firms unable to access the levy.
To ask the Secretary of State for Business, Innovation and Skills, what assessment his Department has made of the effect of the apprenticeship levy on the training requirements of small and medium-sized firms unable to access the levy.
When the apprenticeships levy is introduced in April 2017, small and medium sized employers will continue to have access to government funding to support apprenticeships. We will provide further details on the support available later this year.
To ask the Secretary of State for Business, Innovation and Skills, what the estimated (a) cost of establishing and (b) annual running cost of the Institute of Apprenticeships is; whether his Department has made an assessment of the effects of funding that institute on his Department's annual programme budget; and...
To ask the Secretary of State for Business, Innovation and Skills, what the estimated (a) cost of establishing and (b) annual running cost of the Institute of Apprenticeships is; whether his Department has made an assessment of the effects of funding that institute on his Department's annual programme budget; and...
The final size and structure of the Institute for Apprenticeships will be determined by the shadow chair and CEO later in the spring and this will then determine its final running cost. The body will be funded by Government using public funds, as the rest of the governance system is, and it is expected that some funding will be freed up from savings across the Department.
To ask the Secretary of State for Business, Innovation and Skills, what assessment his Department has made of the effect of the apprenticeship levy on training and skills funding for people aged over 21.
To ask the Secretary of State for Business, Innovation and Skills, what assessment his Department has made of the effect of the apprenticeship levy on training and skills funding for people aged over 21.
The combination of the apprenticeship levy, the protection of the Adult Education Budget and the extension of loans mean that by 2019-20 the total spending power of the FE sector to support participation will be £3.41bn, an increase in cash terms of 40% compared with 2015-16.
To ask the Secretary of State for Business, Innovation and Skills, whether his Department intends to cease any existing or planned business support mechanisms in order to implement the apprenticeship levy.
To ask the Secretary of State for Business, Innovation and Skills, whether his Department intends to cease any existing or planned business support mechanisms in order to implement the apprenticeship levy.
We are not cutting business support mechanisms to implement the levy. We are improving our business services by developing the Digital Apprenticeship Service.
Through this online mechanism employers will have access to a number of services to help them choose and pay for apprenticeship training in a simple way.
To ask the Secretary of State for Business, Innovation and Skills, if he will publish his Department's impact assessment of the apprenticeship levy.
To ask the Secretary of State for Business, Innovation and Skills, if he will publish his Department's impact assessment of the apprenticeship levy.
HM Treasury published a Tax Information and Impact Note on 4 February 2016 at
https://www.gov.uk/government/publications/apprenticeship-levy/apprenticeship-levy.
In her letter to me about procurement associated with Hinkley Point C, the Minister said that
“there are few companies globally that have the capacity to make the ultra-large forgings required for nuclear power plants. It is widely understood and accepted in the nuclear industries that the UK does not have the capacity.”
Given that Sheffield Forgemasters says that it does have that capacity, and that it has supplied such forgings to nuclear plants elsewhere in the world, has the Secretary of State asked the Minister what evidence was used to make that statement? Does he think it appropriate to scrutinise the rationale behind such a sweeping statement that dismisses world-class British steel manufacturers?
In her letter to me about procurement associated with Hinkley Point C, the Minister said that
“there are few companies globally that have the capacity to make the ultra-large forgings required for nuclear power plants. It is widely understood and accepted in the nuclear industries that the UK does not have the capacity.”
Given that Sheffield Forgemasters says that it does have that capacity, and that it has supplied such forgings to nuclear plants elsewhere in the world, has the Secretary of State asked the Minister what evidence was used to make that statement? Does he think it appropriate to scrutinise the rationale behind such a sweeping statement that dismisses world-class British steel manufacturers?
I do not think the hon. Gentleman is up to date on his information, and if he were to speak to Forgemasters—I am sure it would be more than happy to speak to the Chair of the Business, Innovation and Skills Committee—it would admit that it has challenges meeting all orders for different types of steel. The important point that we all agree on is that wherever possible, when steel can be supplied by British companies, that is exactly what we should use.
To ask the Secretary of State for Business, Innovation and Skills, what the budget for the Trade Show Access Programme will be in financial year (a) 2016-17, (b) 2017-18 and (c) 2018-19; and if he will make a statement.
To ask the Secretary of State for Business, Innovation and Skills, what the budget for the Trade Show Access Programme will be in financial year (a) 2016-17, (b) 2017-18 and (c) 2018-19; and if he will make a statement.
For 2016/17 and beyond, UKTI will be reviewing how the Tradeshow Access Programme is aligned with other Export Services as part of the Comprehensive Spending Review settlement. It is therefore not possible to confirm the budget at this stage
To ask the Secretary of State for Business, Innovation and Skills, what estimate he has made of the costs of implementing the Teaching Excellence Framework.
To ask the Secretary of State for Business, Innovation and Skills, what estimate he has made of the costs of implementing the Teaching Excellence Framework.
We recently published the Green Paper: “Fulfilling our potential: Teaching Excellence, Social Mobility and Student Choice,” which sets out our proposals for delivering the Teaching Excellence Framework.
Once we have considered the consultation responses, and are in a position to publish our final proposals, we will publish a Regulatory Impact Assessment which will set out the costs of implementation.
The Secretary of State mentioned simplifying and clarifying the business environment in this country, as well as paring back bureaucracy and identifying a further £10 billion reduction in red tape over this Parliament. Why did the autumn statement propose that small businesses should file tax returns four times a year, rather than annually? Will the Secretary of State outline how that helps small businesses to reduce their costs and burdens? To keep the “Star Wars” quotes going, “I’ve got a bad feeling about this.”
The Secretary of State mentioned simplifying and clarifying the business environment in this country, as well as paring back bureaucracy and identifying a further £10 billion reduction in red tape over this Parliament. Why did the autumn statement propose that small businesses should file tax returns four times a year, rather than annually? Will the Secretary of State outline how that helps small businesses to reduce their costs and burdens? To keep the “Star Wars” quotes going, “I’ve got a bad feeling about this.”
I have not heard that quote from “Star Wars”. [Interruption.] It is really important that we keep deregulating for small businesses, and that was achieved during the previous Parliament. As Chair of the Business, Innovation and Skills Committee, the hon. Gentleman knows that that measure is a net target, and because of the Enterprise Bill, and many other measures, I am confident that we will see huge net deregulation, running into the billions, for businesses over the lifetime of this Parliament.
To ask the Secretary of State for Business, Innovation and Skills, how many times the working groups on (a) public procurement, (b) international comparisons and (c) competitiveness and productivity have met since the Steel Summit on 16 October 2015; and what the actions and outcomes of each of those groups...
To ask the Secretary of State for Business, Innovation and Skills, how many times the working groups on (a) public procurement, (b) international comparisons and (c) competitiveness and productivity have met since the Steel Summit on 16 October 2015; and what the actions and outcomes of each of those groups...
There have been three meetings of the International Comparisons Working Group, which has been examining the application of EU state aid rules in other EU member states and the issue of dumping of steel into the EU. A review of how other EU countries support their steel sectors showed that the UK was not missing an opportunity to provide assistance within the existing rules. It has also helped strengthen the partnership between industry and government, including on the evidence base on dumping of steel.
The Competitiveness and Productivity Working Group, which has met twice under the chairmanship of my Noble Friend Lord O’Neill of Gatley, has held discussions with steel industry representatives on the regulatory regime, energy costs and business taxation issues, as well as looking at broader issues around the future competitiveness of the steel industry. My Rt Hon Friend the Prime Minister has already announced on 28th October during Prime Ministers Questions that we are, subject to state aid clearance, bringing forward compensation for the costs of Renewables Obligation for Energy Intensive Industries and have confirmed the steel industry will be able to take advantage of the available flexibilities under the Industrial Emissions Directive.
The Steel Procurement Working Group, chaired by my Rt Hon Friend the Minister for the Cabinet Office, has met twice, looking at how better to take account of socio-economic considerations in procurement, at achieving better transparency of the pipeline of steel needs in future infrastructure projects, and at steel standards. Following the first meeting, the Government published on 30 October new guidelines for departments to apply on major projects when sourcing and buying steel. The new instructions will help steel suppliers compete on a level playing field with international suppliers for major government projects.
The Secretary of State talks a good game, but the fact is that apprenticeship starts have dropped in every single year since 2011-12. The ambition for 3 million new apprenticeship starts is commendable, but would he concede that, in the light of the uncertainty surrounding key policy aspects such as the apprenticeship levy, he is going to struggle to hit that target?
The Secretary of State talks a good game, but the fact is that apprenticeship starts have dropped in every single year since 2011-12. The ambition for 3 million new apprenticeship starts is commendable, but would he concede that, in the light of the uncertainty surrounding key policy aspects such as the apprenticeship levy, he is going to struggle to hit that target?
First, I must point out that there were more than 492,000 apprenticeship starts in 2014-15, which was up 50,000 on the previous year. The hon. Gentleman mentioned the apprenticeship levy, and I know that he and his Select Committee have done some work on this. I hope that he will acknowledge that that will be a way of ensuring proper funding for apprenticeships, not just for the quality but for the quantity too.
To ask the Secretary of State for Business, Innovation and Skills, when he plans to publish the Government response to the Industry Training Boards review, announced on 23 September 2013; and if he will make a statement.
To ask the Secretary of State for Business, Innovation and Skills, when he plans to publish the Government response to the Industry Training Boards review, announced on 23 September 2013; and if he will make a statement.
The Triennial Review of the Construction Industry Training Board (CITB), Engineering Construction Industry Training Board (ECITB) and Film Industry Training Board (FITB) took place under the Coalition Government. However it was not possible to publish the report before the May 2015 general election.
In the Budget on 8 July 2015, the new Government announced that it will introduce a levy on large UK employers to fund post-16 apprenticeships. The Government is now consulting on how the levy should be implemented, including its interaction with the existing sector levies.
“Given these skills funding policy changes, there have been delays in publication as we consider how the sector levies interact with the apprenticeship levy.”
In his written statement of 20 July, the Minister of State for Skills announced that the aim of area-based reviews of post-16 provision would be to create “fewer, larger” providers, and that colleges would remain “independent institutions.” Will the Minister explain how those two statements demonstrate policy coherence or indeed any logic at all? Will he confirm that the only means by which he can reconcile those statements is by cutting off funds to starve colleges into submission. Is that what he will do?
In his written statement of 20 July, the Minister of State for Skills announced that the aim of area-based reviews of post-16 provision would be to create “fewer, larger” providers, and that colleges would remain “independent institutions.” Will the Minister explain how those two statements demonstrate policy coherence or indeed any logic at all? Will he confirm that the only means by which he can reconcile those statements is by cutting off funds to starve colleges into submission. Is that what he will do?
I am slightly surprised at the hon. Gentleman who is a great man and a great Chair of the Business, Innovation and Skills Committee. He knows full well that it has required no arm twisting or strong arming by Government to encourage lots of colleges to combine with each other to form very successful groups. Manchester College and others are great examples of it. It is that kind of sensible consolidation to increase the strength of the college system that we will be encouraging through the area reviews.
To ask the Secretary of State for Business, Innovation and Skills, with reference to his statement on 25 June 2015, HCWS54 on the Green Investment Bank, what the intended timescale is for moving the bank into private ownership.
To ask the Secretary of State for Business, Innovation and Skills, with reference to his statement on 25 June 2015, HCWS54 on the Green Investment Bank, what the intended timescale is for moving the bank into private ownership.
Timing of a sale is dependent on the outcome of discussions with potential investors. We are keen to make progress but would not want to commit to a particular timetable at this stage. We need the flexibility to do a deal when we are satisfied the time and the terms are right. We will only proceed once satisfied we are able to achieve best value for money for the taxpayer.
To ask the Secretary of State for Business, Innovation and Skills, with reference to his statement on 25 June 2015, HCWS54 on the Green Investment Bank, what percentage stake in the bank he will seek to maintain following a move into private ownership.
To ask the Secretary of State for Business, Innovation and Skills, with reference to his statement on 25 June 2015, HCWS54 on the Green Investment Bank, what percentage stake in the bank he will seek to maintain following a move into private ownership.
Decisions on this will depend on the outcome of discussions with potential investors and will be driven by what best achieves value for money for the UK taxpayer. Our aim is that a majority of shares in UK Green Investment Bank plc would come to be held by private investors.
To ask the Secretary of State for Business, Innovation and Skills, with reference to his statement on 25 June 2015, HCWS54 on the Green Investment Bank, what discussions he plans to have with (a) business organisations, (b) green investors and (c) environmental groups before making a final decision to move...
To ask the Secretary of State for Business, Innovation and Skills, with reference to his statement on 25 June 2015, HCWS54 on the Green Investment Bank, what discussions he plans to have with (a) business organisations, (b) green investors and (c) environmental groups before making a final decision to move...
I appreciate there is widespread interest in the future of UK Green Investment Bank plc. Both the Government and the company will continue to be as transparent as possible about plans for the company’s future.
To ask the Secretary of State for Business, Innovation and Skills, with reference to his statement on 25 June 2015, HCWS54 on the Green Investment Bank, what control the Government will retain over the (i) appointment of the Chair of the Bank and (ii) strategic direction of the bank's activities...
To ask the Secretary of State for Business, Innovation and Skills, with reference to his statement on 25 June 2015, HCWS54 on the Green Investment Bank, what control the Government will retain over the (i) appointment of the Chair of the Bank and (ii) strategic direction of the bank's activities...
Our aim is that bringing private ownership in to UK Green Investment Bank plc (GIB) should free the company from Government control with decisions about operational and strategic matters being a matter for the company, its board and its shareholders. As we move towards introducing private investors, we will be exploring how to ensure GIB continues to invest in accordance with its green principles.