Young People and Work: Milburn Interim Report
I wonder if the hon. Gentleman might remind the House how much employer national insurance contributions are for an under 21-year-old earning less than £50,000 a year.
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Young People and Work: Milburn Interim Report
Nearly a million young people are outside education, employment or training. We call them NEETs, but we should consign that term to history as it defines them entirely by what they are not, and it tells us nothing about what they can do or how they can get there. I have been spending a lot of time in Selly Oak. Earlier this year, I brought local employers together to talk about what they were seeing. They told me that too many young people were reaching them without the confidence or basic communication skills needed to get into work. Some of those problems start exceptionally early: at 10 to 16, not 16 to 24. I have spoken before about boys and young men. Just 62% of boys are school-ready, compared with 75% of girls, and they fall further behind through school. The NEET rate nearly trebles at 18, when the statutory participation age ends. If school has not worked for them and there is no obvious next step, it is disappointingly easy to drift out of sight. I am convinced that we need employers’ involvement much earlier with work exposure to inspire, embolden and enlighten, and to close the gap between expectation and reality across the job market. The Government should be obsessed with closing that gap. As we invest in rebuilding British industrial capacity, we need to think about where the workforce will come from. If a company is expanding a factory with public support, who are we training to work there? If the company knows it will need technicians in five years, it should be working with schools and colleges much earlier. An apprenticeship will not be the immediate answer for everyone, as some young people will need help before they are ready or before an employer is willing to give them their first experience of work. The youth guarantee needs to reach those people. Alan Milburn estimates the annual cost of youth inactivity at £125 billion, which is an extraordinary amount of money. Minister, are we working across the Department for Education, the Department of Health and DWP? Are we working earlier with 10 to 16-year-olds? Are we closing the gap between expectations and the reality of the job market? We should be much better at bringing employers and education together, and in doing so we should consign the term “NEETs” to history.
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Budget Resolutions
There has been quite a lot of chat about future generations throughout this Budget debate. I feel like I have aged a lot over the last four months in this place, but I want to speak today on behalf of a younger generation and, more importantly, the young people who live in my constituency. Although he is not in his place any more, I would like the Secretary of State to put himself in the shoes of a young person in my constituency—a young person who has come to me in the last few days to tell me that since the Chancellor’s announcements last week, they are feeling not hopeful, but fearful. I would like the Secretary of State to imagine that he is a young person who has been to university, worked hard and made personal sacrifices to do everything that he was told he was supposed to do. I would like the Secretary of State to understand what it feels like to be a 21-year-old today, and to try to see how much breathing space there really is for entire generations of young people, who feel more hopeless than ever before, who have been let down time and again by successive UK Governments, and who, in my constituency, despite Scotland voting overwhelmingly to remain in the EU, were dragged out against their will, and so have come of age in broken Brexit Britain. Let us imagine that this young person in my constituency studied for their undergraduate degree in an English or Welsh university and took out the standard tuition and maintenance loan. This young person might now have £60,000 of debt—an amount that they will watch rise year on year, even after they start paying it off, because this Government have changed the terms of a contract that young people signed in good faith. Because the Chancellor has failed to reverse the cruel repayment threshold freeze implemented by his predecessor, young people face the reality of paying off their student loans for the entirety of their working life. Many young people, my peers included, have said that they feel that they will never be debt-free, and I want the Secretary of State to understand how it feels to be a young person at the beginning of their career, staring at that much insecurity and financial instability. In Scotland, we do not punish people for pursuing higher education, but our young people who choose to study elsewhere in the UK face consequences that were previously unimaginable. Debts have moved past stifling, and are now simply oppressive. To me, that speaks of a Government who are comfortable targeting low-income graduates for tax revenue, squeezing young people’s disposable income and making it impossible for them to save. If this young person finds a job—perhaps in hospitality, for which Labour has refused to cut VAT—and they are paid the minimum wage, they will earn enough to make student loan repayments, at 9% of their earnings. Given the ever-rising cost of living, there is almost no chance that they will be able to make savings. They likely find it near impossible to get to the end of every month in credit. Because of Labour’s personal allowance freeze, that young person will see a larger chunk of their income eaten by taxes, without gaining any purchasing power. I want the Secretary of State to imagine how it feels to be a young person who, on payday, instead of feeling financially secure, feels despair. Many young people across Scotland and my constituency, and further afield, cannot rely on financial support from their family. If that young person is renting a flat, they are likely to see their energy bills increase again in January, taking the total to more than £1,000 more than Labour initially promised, and dwarfing any minuscule changes made by announcements last week. In Scotland, that young person might be one of the 800,000 Scots now paying higher gas bills to subsidise English taxpayers, or one of the 150,000 Scots relying on heating oil who receive no support at all for that—this Labour Government so often forget about rural communities. That young person will be watching as the Resolution Foundation predicts that the disposable income of the average household is set to fall by £1,000. For a young person who is already struggling to put fuel in their car, that is a terrifying concept. For a young person on the cusp of their adult life, who has done nothing but work hard, but who is staring in the face of job insecurity, the fear of never receiving a state pension, and the certainty that they will never be able to afford a house, and who has lifelong student debt hanging over their head and monthly costs that completely consume their earnings, the Budget is cold, hard confirmation that the new iteration of a Labour Government is no better than the last. Young people in Scotland deserve to feel hopeful, and to have ample opportunities to learn, save and work. That is not what they get from this Labour Budget.
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Public Services and Economic Growth: Scotland
Economic growth in the north-east of Scotland and our green transition rely on the carbon capture and storage project at Peterhead. Would the Minister make clear what assessment the UK Government have made of whether it will still go ahead, given their massive cuts to the project?
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Poundland
The news that Poundland has filed a notice of intention to enter administration will cause deep concern to the many thousands of employees whose jobs are in jeopardy and the millions of customers who rely on its low prices. With almost 50 stores in Scotland, including the Poundland in my city of Dundee, my thoughts are with the many families who are now worried about jobs and livelihoods at the worst possible time, the run-up to Christmas. Given that discount retailers would normally be expected to perform strongly during a cost of living crisis, does the Minister recognise that Poundland’s potential administration is yet another damning failure of this UK Government to improve consumer confidence and the health of UK high streets, and to alleviate the financial pressures facing low-income households?
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Budget Resolutions
My right hon. Friend is making a very powerful speech. Does he share my disappointment and dismay with this fact—that, for every young Brit who is hired today, 27 young foreign workers are hired? Young people are being locked out of the labour market because of mass immigration.
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Budget Resolutions
One million—that is the number of young people who are not in education, employment or training. Youth unemployment stands at 14%. That is a scandal and a crisis. Far from giving young people hope, this Budget throws them under a bus, frankly, because it is fundamentally unfair. We are losing a generation. This Budget is unfair to the 16-year-old who has finished their GCSEs and wants to start working, but who faces zero opportunities to find an apprenticeship or learn a skill. It is unfair and offers no hope to the 21-year-old who has done the right thing and studied for a degree, but who has come out with a qualification that is not opening any doors and has instead saddled them with crippling debt and directed them to the welfare office to claim out-of-work benefits. This Budget is also unfair to the British taxpayer, who currently lays out £22 billion a year in student loan payments. That is a taxpayer who will see hundreds of billions of pounds never repaid; a taxpayer who faces chronic shortages in our labour market, particularly in the NHS, construction and hospitality. We have a lost generation, and this Budget does nothing for our young people.
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Budget Resolutions
The right hon. Gentleman is absolutely right. That is exactly the point that I am about to make. How did we get to this youth unemployment crisis? For the past 30 years, starting with Tony Blair, we have sold one promise to young people: that they need to get a degree, regardless of what it is or where it is from, and they will be set up for life. However, for so many young people today, that has been exposed as a lie. We have 700,000 graduates currently unemployed, some 400,000 of whom are claiming welfare. Average graduate debt stands at £50,000, average graduate salaries are falling, and graduate hiring is disappearing. For many of those young people, it is not so much that they have taken out a student loan; they have been saddled with a life sentence. It is no wonder they cannot start saving, buy a house, get married or think of starting a family. They are being crippled by the system, and this Budget does nothing to support them.
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Budget Resolutions
I am afraid that is just a drop in the ocean compared with the enormity of the challenge we face. I will come on to skills and apprenticeships in one minute, but I will dwell on how we got to this great university scam, as I call it. We have some of the best universities in the country, and I will always defend them, but our universities are failing many of our young people and offering awful value for money. Some of the courses are not worth the paper they are written on. Is it really right that vice-chancellors are earning huge salaries but offering awful job prospects? Do some of them really deserve their £200,000 or £300,000 salaries when their institutions are offering job prospects for only 40% of their graduates? No. Do we really need courses in politics, sexuality and gender, with a vice-chancellor on more than £200,000? No. That is all while we have gaps in our NHS, construction and hospitality. That is why a Reform Government would deal with this issue. We would reduce the student loan budget by 20% and invest the billions saved into helping our country. We would train up British doctors and nurses and scrap the arbitrary cap on medical training places. Let me say a word about immigration, because it has been a big factor. Many universities have got fat on foreign students. I am afraid that I have to say it: the last Conservative Government opened the floodgates to international students. It is something that I started to reverse when I was Home Secretary. As a result, universities have been selling immigration, not education. As a consequence—as I said earlier—for every young Brit who is employed in this country, 27 young foreign workers are also employed.
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Budget Resolutions
I am sorry, but I do not have much time. I will try to come back to the hon. Lady. What I have described is locking our young people out of the labour market. A Reform Government would put British workers at the front of the queue for British jobs. That used to be common sense, but today it is controversial. Moving on to apprenticeships and skills, I am afraid that this Budget is conspicuously silent on investing in skills, apprenticeships and the vocational trades. The number of apprenticeships has almost halved over the past decade, particularly among small and medium-sized businesses and for entry-level positions.
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Budget Resolutions
The reality is that £100 million is a small amount compared to the enormity of the challenge that we are required to face, as I said to the hon. Gentleman’s colleague, the hon. Member for Mid Derbyshire (Jonathan Davies). Employers are not taking on young people—that is a fact and it is borne out by the statistics. Employers are not taking on apprentices, because it has become too expensive for them. It has become heavily regulated and bureaucratic, and the training requirements are now too rigid.
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Budget Resolutions
The hon. Lady is on a weak point there, because it was the last Conservative Government who started the apprenticeship movement, and apprenticeships peaked at around 600,000 in 2016. I was very pleased to champion apprenticeships in my constituency, and thousands of young people in Fareham and Waterlooville have taken them up, but that number has been halved—we are now at about 300,000 apprentices. A Reform UK Government would introduce an apprenticeship wage credit. We would pay small and medium-sized enterprises 30% of an apprentice’s salary to help them with the cost of taking on a new person, investing in our future and in young people. I want to live in a country where a young person is able to enjoy opportunities to prosper, work hard and thrive in their life, regardless of where they come from, what their parents did or the kind of school they went to. I am afraid that this Budget offers precious little to our young people and zero hope to the next generation, and is a real disappointment for our young people, who are crying out for hope and opportunity. That is why I will be voting against it tonight.
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Advanced Manufacturing
The Parliamentary Secretary to the Treasury, the hon. Member for Swansea West (Torsten Bell), and the Chancellor have both inadvertently misled the House by saying that Government borrowing is coming down. It is not: in the Budget, borrowing for this year will be almost £20 billion higher than at the March OBR forecast; and for the lifetime of the Budget book, it will be £65 billion higher.
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Poundland
Today the Tory party has shamefully said that it does not give two hoots about 12,000 workers, including dozens in my constituency. What is going on here is that the management of Poundland are very concerned that the owners of Poundland are looking to abuse the insolvency process to maximise their financial returns, not giving two hoots about 12,000 workers. Will the Minister confirm that the Government will do everything they can to ensure that Gordon Brothers will not act as a rogue owner by abusing the insolvency process?
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Government Borrowing: Economic Impact
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Government Borrowing: Economic Impact
Does the Minister understand just how devastating the effects of his Government’s spending, taxing and borrowing policies are for my constituents in Romford? Does he recall that the last time we had a Prime Minister who understood that we need low taxes, a smaller state and lower borrowing was in 1990? Then the national debt was 21% of GDP; now it is heading for 100%. Will he please reduce the size of the state, cut taxes for hard-working people and start to live within our means?
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Advanced Manufacturing
Around 5,000 people in my constituency work in the hospitality sector, which is a vital part of the Welsh economy. While hospitality businesses across much of the European Union benefit from reduced VAT rates, our pubs, hotels and restaurants are stuck paying 20%. Why did the Chancellor decide not to prioritise that sector in last week’s Budget?
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Young People and Work: Milburn Interim Report
Diolch yn fawr, Gadeirydd. It is a pleasure to serve under your chairmanship. Let me start by saying that I do not like the phrase “not in education, employment or training”, or NEET; I much prefer LEET, because most young people are looking for employment, education or training. The NEET phrase makes people feel as if they are not trying hard enough, which could not be further from the truth. Young people are hard-working and passionate, and they want to contribute their skills to the workforce, but our system does not set them up for success. Many have not yet found the opportunities or pathways that allow them the space to figure out and find their niche. Everyone is good at something, but too many young people are not afforded the opportunity to figure out what that may be. The most recent data shows that 14.6% of young people aged 16 to 24 in Wales are not in education, employment or training to the year ending June 2026. That is an unacceptable figure. Nearly one sixth of our talented young people in Wales have not been given the opportunity to thrive and find their place. One thing that stood out to me from Milburn’s interim report was the impact on place of the levels of young people not in education, employment or training. In rural Wales, barriers to obtaining a driving licence or having access to a car makes that a very visible problem. Young people facing financial constraints are more likely to struggle as a result of those barriers. If we are serious about widening opportunity, tackling child poverty must be a priority. With that in mind, can the Minister confirm whether the Welsh Cynnal payment will be disregarded for benefit purposes? I have met so many fabulous young people since becoming the Member of Parliament for Caerfyrddin, and I am really proud to be their MP. Minister, what steps are the Government taking to ensure that every young person, no matter their postcode or financial background, has the same chance to succeed?
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Budget Resolutions
Can the right hon. and learned Lady remind us of what her Government did, and what she did when she was in government, to increase apprenticeships?
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Budget Resolutions
I would like to address the barriers that businesses are facing right now that make them not so hopeful about the future. The south-west is home to many innovative businesses that employ local people and generate growth across the region, such as Drift Energy and Luthmore. Based in Bath, Drift Energy is developing a first-of-its-kind sailing vessel that harvests wind energy on the move. This groundbreaking innovator would reduce UK reliance on imported fossil fuels, increase domestic green hydrogen capacity and open new manufacturing and maritime innovation opportunities. CBI Economics has estimated that by 2032, Drift Energy could deliver nearly £200 million in growth through operations in the south-west alone. Luthmore is a south-west business that has developed a first-of-its-kind battery-enabled alternative to the gas combi boiler. It currently employs 42 people—a figure that is forecast to double to 80 within the next nine months, making it a significant local employer. With the right support and conditions, these businesses could generate real growth in postcodes across the south-west. The Government say that they will cut business costs and support innovation, but the measures in this Budget do not go anywhere near far enough in addressing the financial challenges that these businesses face. The Budget fails to address a significant funding gap—the gap between the points at which seed investment funds and venture funds respectively feel comfortable enough to begin investing in a business. As the financial markets continue to suffer, the risk appetite of venture funds decreases, which means that companies must reach a significantly greater maturity before they can be funded from these sources. The innovation loan and grant schemes, which have been separated into regional districts, and agencies such as the clean growth fund were meant to plug that this gap, but they are now approaching investments in a similar vein to commercial venture capital: they are looking for greater and greater reduction of risk. That forces innovative businesses that develop first-of-its-kind technology to seek funds from international sources, often with a requirement for operations to be moved away from the original region. These businesses want to employ local people, but the Budget does not address the failure of Government policy to support businesses to mass-manufacture in Britain. There are no local incentives that would reduce costs and enable them to compete with international manufacturers. British businesses moving abroad is not good growth in every postcode. The Budget leaves the future uncertain for those businesses, making it harder to employ local people, harder to trade with local businesses, and easier to move abroad and ultimately prevent the growth that we all want. I also want to address, very briefly, the unwelcome and short-sighted cuts in the warm homes plan and the boiler upgrade scheme. This decision is of profound concern in respect of not only our climate commitments but the basic health, security and wellbeing of many households across the country. As fossil fuel prices surge, the boiler upgrade scheme is cutting bills for people across the country, employing thousands, and improving the resilience of homes by breaking the link with oil and gas. The boiler upgrade scheme is more than a grant to help households; it is creating a UK industry that can deliver cheaper heating, skilled jobs, greater energy independence—and, yes, growth. I urge the Government to reverse this disastrous decision and immediately restore full funding to our warm home commitments. We all want growth. I have drawn attention to a few things that make growth very difficult for businesses across the south-west and across the country, and I hope that the Government will consider them.
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Budget Resolutions
Given that the Minister has just said that the Government want to support households but also move away from expensive fossil fuels, why make cuts to the boiler upgrade scheme and the warm homes plan?
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Budget Resolutions
Britain needed a much bolder Budget for growth—one for families and businesses, and to boost our economy. For families, heating—or even cooling—our homes, getting around and feeding the family are all costs that continue to rise. The energy price cap is set to rise again in January, and 1.4 million low-income households in higher council tax bands will miss out under this Budget. However, our Lib Dem essential energy guarantee would take £100 off the average bill for everyone, paid for by clawing back excess profits made by monopoly energy operators. We would also cut rail fares by 10%, bus fares to £1 and fuel duty by 10p, paid for by the Treasury’s fuel price windfall. For most businesses, rent, rates, energy and hiring costs are going up. At DJ’s Play Zone in my local area, Mark says that his rates bill has gone up by 52%, from £21,000 to £32,000 a year, on top of the national insurance jobs tax and rising wages. He is running a small business in a big building, so small business relief never reaches him. The Chancellor’s new £18,000 threshold changes nothing for him and many other businesses that slip under the net.
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Budget Resolutions
Absolutely. That is why we need wholesale reform, looking at how we are supporting the businesses that need it and at the broken business rates system. Charlotte from Berkhamsted Bookshop tells me that the average independent bookshop will need to sell over 1,000 more books a year just to cover rising costs. Christopher, who runs a small martial arts academy in Tring, tells me that rising rent and service charges threaten his future, with almost no protection for small commercial tenants. Liberal Democrats have repeatedly called for more to be done to help our local businesses, including replacing business rates with a commercial landowner levy and cutting VAT on hospitality by 5p.
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Budget Resolutions
I could not have put it better myself. On top of that there is the cost of hiring, as has been mentioned again and again. The Government have to tackle that for businesses. If we truly want fresh hope for the future and for our wider economy, we need bold action. Supporting our entrepreneurs is key, and as Lib Dems who have pushed for a type of young entrepreneurs allowance for almost a decade, we are pleased to see that proposal and look forward to hearing more details. I would also push the Government to look at further work to support start-ups and scale-ups, including reviewing the seed enterprise investment scheme, tax on SEIS, tax credits and relief so that they work for businesses. As for the founders’ relief, I ask the Government to work with the industry to ensure that it works. One founder said to me that they felt that if they stood on one leg and turned around enough times they might just about get close to getting some of it. On incentivising innovation, the Government must take spin-outs from our world-leading universities across the UK more seriously. We are calling for the Government to quintuple proof-of-concept funding, create regional innovation centres and introduce standardised frameworks for negotiating intellectual property across the sector. As regards innovative spending, the extra £120 million for the Sovereign AI fund pales in comparison to the nearly £8 billion of active contracts with US tech giants or the billions spent on procurement. We call for a proper digital sovereign strategy to back our British businesses and to look at increasing research and development spending, so that we do not have to make decisions over Jodrell Bank, for example, and how that is impacting innovation. Finally, we need a bold plan on Europe. We are calling for a growth and defence partnership with Europe, rejoining the single market and customs union. Not only can we cut taxes for families with that growth dividend, but inject real growth into our economy for families, businesses and our future.
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Community Transport Services: Minibus Drivers
I am a massive supporter of Mendip Community Transport. In fact, my village has a community transport minibus, which is an absolutely essential lifeline, particularly in such a rural area where we have no buses. What does my hon. Friend think about the fact that if someone wants to undertake a minibus driving test in my area, they must travel some long distance and the test can cost up to £2,000, which seems extraordinarily expensive?
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Community Transport Services: Minibus Drivers
I thank my hon. Friend for giving way for a second time. I would like to point out that a number of community minibuses are electric vehicles, and their batteries make them very much heavier, which, along with accessibility equipment such as wheelchair lifts, automatically take their weight way over the 3.5 tonne limit.
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Young People and Work: Milburn Interim Report
UKHospitality highlights that over 100,000 jobs have been lost in the hospitality sector, particularly in areas such as Torbay where hospitality can be the first rung of employment. Does my hon. Friend agree that we are seeing a crisis of opportunity for young people, rather than a NEET crisis?
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Train Services: Extreme Weather
It is a pleasure to serve under your chairmanship, Ms Jardine. I congratulate the hon. Member for Cannock Chase (Josh Newbury) on landing this really important debate. Climate change is the real enemy we are facing, whether in the form of extreme heat or storms. Twelve years ago, the storm at Dawlish ripped away the sea wall, leaving it looking almost like a railway line somewhere in South America after a big storm. It resulted in eight weeks of closure down to the south-west of England—eight weeks that massively impacted us. One estimate suggested that the economic impact was around £1.2 billion. I remember getting on trains at Paddington that were usually busy but felt more like the Mary Celeste. It was incredible. There were five parts to the puzzle of sorting the rail line out, as part of the south-west resilience programme. The fifth and final part remains outstanding, which is extremely worrying. Most of us enjoyed the really good summer we just had—some of us endured it—but the other side of the coin is much wetter winters, which could massively impact the cliffs at Dawlish. The cliffs are the enemy now, rather than the sea, as they could collapse. Work on that is unfunded, and we desperately need the funding. I hope the Minister will reflect on that in his comments. Further up the line from Dawlish is Powderham, often a place for events. The challenge there concerns the Environment Agency’s choice of a managed retreat from Dawlish Warren, such that the warren, which currently acts as a protector to the estuary, could break and open up the railway line at Powderham to attack by storms and the sea. We need investment to protect that rail line, after we have achieved the success at Dawlish that we are hoping for from the Minister. I want to reflect on where we are with the heat. In Devon and Cornwall, we have really poor-quality local rolling stock, which is almost life-expired. The perverse thing is that although they are new to us, the trains are third or fourth hand-me-downs from elsewhere in the country. The class 175s were handed down from south Wales, and they have not quite been got running, so even the hand-me-downs do not work. In the north of England, there has been investment in quality rail solutions for the trans-Pennine railways—partly electrification and partly battery. We should have a similarly futuristic rail service for Devon and Cornwall, which would not only be a lot more sustainable in our changing world, but would ensure that we tackle climate change by taking the carbon out of travel on our railway. A specific challenge facing trains in the south-west is the lack of moisture in the soil, which means that they have to travel particularly slowly. We need to be alive to that issue, as well as to buckling rails. I speak to hoteliers such as the owner of the Berburry hotel, which is quite close to Torquay rail station. She gets international visitors, whose experience on the continent, sadly, is often of a much better-quality rail service. After decades of under-investment, we really need that investment. I look forward to the Minister’s reflections on the fifth and final piece of the Dawlish puzzle, on how we protect Powderham in the light of the threat I highlighted, and on investment in quality rolling stock for Devon and Cornwall, so that we can face the future with confidence.
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Train Services: Extreme Weather
A few months ago, Network Rail met me and other south-west MPs who are here today and told us that it is occasionally acceptable to close the Dawlish rail line. Does the Minister believe that it is acceptable?
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Budget Resolutions
I refer the House to my entry in the Register of Members’ Financial Interests, as a former county councillor. It is safe to say that I have not been inundated with emails praising this Budget or crediting it for tackling the thorny issues that my constituents face. Those eligible will welcome the £100 energy bill payment going towards their soaring bills, but the more than 10,000 of my constituents reliant on heating oil will wonder where they are going to find the rest of what has often been a £500 price hike on their oil bills. They will also be asking why the Government have cut VAT for those who rely solely on electricity but are happy to rake in double the VAT receipts from others who face those soaring bills. Removing VAT on those bills would put another £50 back in the pockets of those who have to fill a 1,000 litre tank. The Government are benefiting from a VAT windfall, and it is time that they gave that back to the people suffering from these higher costs. Rural communities in general are struggling as a result of this Budget. In particular, schools are close to their crisis point in too many villages in North Norfolk. Earlier this year, Corpusty primary shut its school gates for the last time. It was heartbreaking for the families affected, and for the children, who were losing the only school that most of them had ever known. We fought tooth and nail against that closure—unlike, I should say, either the Conservative or Reform administrations at County Hall, who stood idly by. I warned anyone who would listen that Corpusty was the canary in the coalmine. Its fundamental challenges were not unique, and it was an indicator of a worrying trend that needs to change. I am deeply fearful of what comes next, because more school leaders and parents are telling me their concerns about their local schools. For all their best efforts, headteachers just cannot make the books balance. It is not their fault; they are being failed by a funding formula that simply does not appreciate the realities of rural life and the importance of rural schools to their communities. In places where there is a fall in the number of children and young people, schools are crying out for a funding package that can help them stay afloat and adapt to a difficult financial and demographic environment. They should feel reassured by the falling rolls funding mechanism, which triggers a £140,000 payout to local authorities through the dedicated schools grant whenever there is a drop of 10%, year on year, in an area’s pupil census. Despite that drop being the reason why that money is coming forward, there is no requirement for it to be spent on those schools, or the issue of falling rolls. It is clear that both sides need to change their processes. The Government need to be more prescriptive about ringfencing, and I will argue that it is not an outlandish ask for falling rolls funding to be dedicated to falling rolls. On their side, the local authority cannot just use this as another sticking plaster to cover educational funding crises. If we do not get a grip on the schools crisis, we face challenging times in our rural communities. If we lose the schools, we lose the working-age population. If we do not fund rural schools properly, whole communities suffer. If there is no local school, the area is not a viable place for a young family to live. That means no one of working age to do the inherently rural jobs in farming, or in the energy industry or defence. In a community without working-age people, there is no one to staff the doctor’s surgery, provide care or even pour a cup of coffee on a Monday morning. We must act now if we want our cherished rural and coastal communities to flourish, and if there is to be good growth in every postcode, there must be cross-governmental support for small rural schools. The Government’s goals—not just for education and economic growth, but for transport, housing, climate change, food security and even defence—all depend on a vibrant future for our rural communities, yet this Budget’s measures are just another example of the Government working in silos, which is not working for our rural areas. It is time to re-establish hope for rural communities by backing small schools.
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Advanced Manufacturing
The Treasury Committee’s recent report on student loan repayments said that the Government have a “moral obligation” to reverse their decision to freeze the threshold at which student loans are repaid. Will the Chancellor set out his timeline for when he will end the repayment threshold freeze?
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Poundland
The news about Poundland will be deeply worrying for its 12,000 staff members and their families, for the 30,000 staff overall when we include the supply chain—as the Chair of the Select Committee has said—and for the communities in which its stores are located. As Poundland’s founder, Steve Smith, has said: “Once these jobs are lost, they are lost”. For many families, Poundland is one of the few affordable options left. People are already struggling with an unsustainably high cost of living, and they now face losing somewhere that they rely on to make their money go further. The fall of Poundland raises bigger questions about our high streets. Its troubles show how much pressure both shoppers and high street businesses are under. The Prime Minister has set out his ambition to revive the high street, but the collapse of one of the UK’s most well-known and affordable retailers highlights the extent to which our high streets are struggling. The business rates system puts our high street shops at an unfair disadvantage compared with online retail giants, and the national insurance hike imposed by this Government is unfair and counterproductive. With unemployment levels already alarmingly high, will the Minister now listen to the Liberal Democrats’ calls to properly overhaul the broken business rates system and scrap the unfair jobs tax—at the very least, for part-time workers?
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Child Trust Funds
As a YMCA parliamentary patron, I visited the YMCA’s home in Glastonbury, which works alongside Street Foyer to support young people, including care leavers. Many care leavers had child trust funds opened by the state but have no parent or guardian to tell them that the money exists. They need it the most. What is the Minister doing to ensure that every care leaver receives the savings that are rightfully theirs?
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Train Services: Extreme Weather
It is good to see you in the Chair, Ms Jardine. I congratulate the hon. Member for Cannock Chase (Josh Newbury) on securing this debate. It is one that I have tried to secure on a number of occasions, because the west of England line runs through my constituency, passing through the towns of Axminster, Honiton and Feniton. I was struck a moment ago by my hon. Friend the Member for Chichester (Jess Brown-Fuller) describing how extreme weather has become, simply, weather. That was very well put. In this debate, we could talk about not extreme weather but the impact of climate change on our transport infrastructure. It is good to see the Minister for Local Transport in his place, because he has been fantastic at securing new railway stations for mid-Devon and Somerset at Cullompton and Wellington, respectively. He does an excellent job in his role, and that is why I am pleased to have the opportunity to talk about Liberal Democrat policy as well as the west of England line. The line connects Exeter with London Waterloo and goes via Salisbury. Much of that line, certainly west of Salisbury, is single track. When there is a disruption or delay, that means that the whole timetable gets thrown. Understandably, a lot of residents in east Devon have contacted me about that in the dry hot summers that we have had in the last two years. South Western Railway describes the main consequences of that dry weather as “soil moisture deficit”, which is a euphemism for embankments that are dry. That is largely due to the route sitting on clay. When prolonged heat and drought remove moisture from the soil, the clay shrinks, the embankments move and the track moves, too. In those conditions, it would be dangerous to carry on as normal. Speed restrictions have to be imposed. We saw the consequences of extreme weather on a railway line that does not have any disruption to the schedule in Lewes earlier this year, when a Southern train derailed. The problem in that case was “track geometry irregularity”, which I think is a euphemism for rails that have bent. In seriousness, I accept that safety has to come first. But we have to acknowledge that while safety is a priority, it is having severe consequences on the people we represent. I want to consider young people who are trying to build their futures. One person from Awliscombe wrote to me to say that his 17-year-old daughter could no longer get to her apprenticeship for 8 o’clock in the morning, because the only train reaching Exeter at that time had been cancelled. Without any replacement bus service, he and his wife are having to make a 40-mile round trip by car to get their daughter to work. That is not an isolated incident: roughly 550 college students travel on the west of England line to Exeter college. A father from Offwell told me that his daughter, who has just started, is subjected to train cancellations and delays, and often spends two to three hours every day waiting for a train home from Exeter. A mother from Honiton explained how, since both the 7.30 am train and 7.45 am bus have been cancelled, there is no way for students to arrive on time for their 9.45 lectures. Students are relying on the service to access their further education, but it is also affecting working people. Shelby Gittens is a dental hygienist from All Saints near Axminster. She has been prevented from reaching Exeter reliably before the start of her working day. Due to the delays, her office has had to reschedule her 9 o’clock patients indefinitely until the matter is resolved. Given that Devon is one of the UK’s foremost dental deserts, that is quite a serious consequence for people trying to get dental work in Devon.
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Train Services: Extreme Weather
My hon. Friend makes a good point. Time is not wasted on a delayed train if there is a good wi-fi connection for the workers onboard, so I recommend that investment in the main line. On the west of England line, which is the poor relation to Great Western, I have heard from constituents who have been trying to get to colleges, schools and businesses, and from patients and families, about the effect it is having on the local economy. Those disruptions often hit the most vulnerable in our society the hardest. Kathryn Wilkerson from Sidmouth told me that over the course of six journeys to London for work that she made in the summer heat, only one featured working air conditioning. She explained that on multiple occasions when she was on packed trains, she had to pause her journey and get off the train due to dizziness and to avoid fainting from heat exhaustion. Kathryn pointed out that this means that train travel in the heat can be dangerous, and that the rolling stock needs to be updated to adapt to the climate change that we all see. Students, workers and the vulnerable all tell the same story. People I represent are right to ask why a line of such importance for the network as a whole remains so vulnerable. People can accept that temporary measures may be required because of soil moisture deficit, but this is no longer a temporary measure—it is the second year in a row that a schedule has been introduced for months at a time meaning that trains are only running once every two hours. Weather-related delays across the country have cost around £370 million over three years from 2023-24, but that is just the narrow economic consequence on the railways, not the wider consequences for all those people whose anecdotes I have described. The Liberal Democrats believe that passengers deserve railways that withstand the climate conditions that we are set to face. Too much of our infrastructure, particularly in the west country, still relies on Victorian earthworks and drainage systems and assets that were not designed for today’s climate—and of course they have been subject to the Beeching cuts. Instead of bringing those facilities into the 21st century, the last Conservative Government left behind a legacy of underinvestment and crumbling infrastructure. I have corresponded with Ministers in the Department for Transport, not least with Lord Hendy in the other place, about the west of England line. The specific thing that I have sought from Ministers is investment into passing loops on the line. To make an analogy with the road, passing loops are like pulling over to allow an oncoming vehicle to come the other way. I understand from Lord Hendy that if we were to make the case for investment in passing loops in control period 8—the period of 2029 to 2034—we could potentially see them developed at Tisbury, Feniton, Whimple and other places on the west of England line, to enable trains to pull over and to run on a more frequent basis, even when experiencing soil moisture deficit. What further can the Minister recommend that we do to secure those passing loops in control period 8? More generally, how will the Government accelerate investment in climate resilience so that we can get ahead of the changes we know are coming down the track and make sure that our students, workers and most vulnerable members of society get the transport links they deserve?
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High Streets and Town Centres
While the Budget provides some welcome support for high streets, so many businesses in Tiverton and Minehead tell me that excessive costs, regulation and red tape remain a drag on growth. Does the Minister agree that lasting economic growth will require not just short-term support but fundamental reform of business rates and tax administration so that businesses can invest, expand and create jobs with confidence?
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Budget Resolutions
I am delighted to hear that the hon. Gentleman, a medical professional, recognises the importance of primary care. We spend a fraction of what the NHS spends on chronic care on primary care. Just last night, I hosted a reception for the Independent Pharmacies Association, which I know will be grateful for his words.
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Train Services: Extreme Weather
I thank the hon. Member for introducing this debate. Like him, I have surveyed my commuting constituents; as a result, I regularly complain about the unreliability of South Western Railway. It is particularly unreliable whenever there is hot or cold weather. Does he agree that the Government should deliver an investment plan to improve our railway network so that it can adapt to climate change, including by introducing air conditioning on all train services?
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Cost of Living
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Cost of Living
Yesterday, Trussell and the Joseph Rowntree Foundation wrote to the Prime Minister criticising the Government for freezing local housing allowance, saying that it will not help people with the cost of living and will critically undermine plans to end rough sleeping. Does the Chancellor agree with those national charities and Citizens Advice in my Woking constituency that rent support must be tied to actual rent levels?