Parliamentary Debates (Hansard)

Tuesday Volume 543 24 April 2012 No. 293 HOUSE OF COMMONS OFFICIAL REPORT PARLIAMENTARY DEBATES (HANSARD) Tuesday 24 April 2012 £5·00 © Parliamentary Copyright House of Commons 2012 This publication may be reproduced under the terms of the Parliamentary Click-Use Licence, available online through The National Archives website at www.nationalarchives.gov.uk/information-management/our-services/parliamentary-licence-information.htm Enquiries to The National Archives, Kew, Richmond, Surrey TW9 4DU; e-mail: [email protected] 791 24 APRIL 2012 792 Mr Hoban: We have heard the same old stuff from House of Commons the hon. Gentleman for the last 42 years. Perhaps it is time for him to help youth unemployment by creating a Tuesday 24 April 2012 vacancy. We are providing young people with more help to get into work, with an extra quarter of a million apprenticeship places. I would have thought he would The House met at half-past Two o’clock have welcomed the fact that the city of Sheffield enterprise zone is at Markham vale in his constituency. That is the PRAYERS sort of practical action this Government are taking to ensure that jobs are being created. [MR SPEAKER in the Chair] Harriett Baldwin (West Worcestershire) (Con): Will the Minister explain to employers—in Bolsover and BUSINESS BEFORE QUESTIONS elsewhere—that as of this month there is a youth contract that will pay them to take on unemployed young people? TRANSPORT FOR LONDON (SUPPLEMENTAL TOLL PROVISIONS)BILL [LORDS](BY ORDER) Mr Hoban: My hon. Friend is absolutely right. Some Second Reading opposed and deferred until Tuesday 1 May 160,000 wage incentives, worth up to £2,775 each, are (Standing Order No. 20.) available for employers who recruit an 18 to 24-year-old through the Work programme. LONDON LOCAL AUTHORITIES AND TRANSPORT FOR LONDON (NO.2)BILL [LORDS] Rachel Reeves (Leeds West) (Lab): Can the Minister Motion made, tell us how many young people have now been out of That the promoters of the London Local Authorities and work for more than six months, and how that compares Transport for London (No. 2) Bill [Lords], which was originally with the figure of a year ago? introduced in the House of Lords in Session 2007-08 on 22 January 2008, should have leave to suspend any further proceedings on the Mr Hoban: I would have thought the shadow Chief bill in order to proceed with it, if they think fit, in the next Session Secretary would have welcomed the fact that youth of Parliament according to the provisions of Standing Order unemployment fell last month. That demonstrates that 188A (Suspension of bills.)—(The Chairman of Ways and Means.) the Government are taking action to tackle the scourge of youth unemployment—a problem that did not emerge Hon. Members: Object. under this Government, as youth unemployment also To be considered on Tuesday 1 May. rose when her party was in government. Rachel Reeves: The Minister failed to answer my Oral Answers to Questions question, so let me tell the House that 170,000 young people have been out of work for more than six months. That is an increase of 114% since just a year ago. Does the Minister think it is fair that families with children TREASURY are being asked to pay a higher price for deficit reduction than the banks, and if not, will he reconsider reinstating The Chancellor of the Exchequer was asked— the bank bonus tax to support young people back to work—especially as his Budget has given a tax cut Bank Bonus Tax worth £40,000 to 14,000 millionaires? 1. Mr Dennis Skinner (Bolsover) (Lab): If he will Mr Hoban: I just point out to the hon. Lady that the consider imposing a further bonus tax on banks to fund last Labour Government ruled out introducing a bank job creation for young people who are unemployed. levy. That levy is raising £2.5 billion, and it will raise [104789] £10 billion over the lifetime of this Parliament. I think it is right that banks should pay a fair contribution for the The Financial Secretary to the Treasury (Mr Mark risks they have posed for the UK economy, and I would Hoban): The bank payroll tax is a one-off measure, but have thought she would have welcomed both the bank the Government have gone further by imposing a levy and the fall in youth unemployment last month. permanent bank levy that will raise £10 billion over the course of this Parliament. Those funds will help to pay Duncan Hames (Chippenham) (LD): Youthunemployment for the youth contract, introduced this month, which is clearly more acute in some parts of the country than will provide up to 500,000 young people with new in others. Why does the Minister think it has fallen in education and employment opportunities. over a third of the country, including Bolsover, but not in some constituencies, such as Bradford West, where it Mr Skinner: So the answer is no: they are not going to has increased by 500? introduce a bank bonus tax that could provide jobs for 100,000 young people and still leave money to spend on Mr Hoban: My hon. Friend makes the important providing a training facility at Markham vale, which point that the pattern of youth unemployment varies would serve all the constituencies of south Yorkshire across the country. It is important that the necessary and the north midlands. What an opportunity! If this support is in place to help young people looking for posh, arrogant Government will not do that, the next work, and the Work programme is likely to help 100,000 Labour Government will do it for them. young people this year. That is just one of the practical 793 Oral Answers24 APRIL 2012 Oral Answers 794 measures we are taking to tackle the problem of youth increase in capital allowances, rather than cuts and cuts unemployment—which, as the right hon. Member for in corporation tax. Why do the Government not do South Shields (David Miliband) said, started under the this? last Labour Government. Danny Alexander: The hon. Gentleman will know Mr Iain McKenzie (Inverclyde) (Lab): With the disgrace that we have put in place enhanced capital allowances in of having more than a million young people unemployed a number of enterprise zones around the country, up and down this country, does the Minister not now particularly to focus investment in plant and equipment regret scrapping the future jobs fund during the first in such areas. We announced in the autumn statement few months after coming to power? improvements to the short-life capital allowances regime, which had been a major request by manufacturing and, Mr Hoban: It was clear that the future jobs fund was in particular, the engineering sector. I would have thought not cost-effective in helping young people, and we have that he would have welcomed those changes. found that the work experience programme is 20 times more effective. We have introduced a range of measures Mr Andrew Tyrie (Chichester) (Con): The Budget to help young people find work. We have already talked identified a number of sectors for fiscal support. All about the increase in the number of apprenticeship Departments and all of us can think of deserving cases, places, the number of people being helped by the Work particularly in our constituencies, but is it not the programme and the number of wage incentives in place Treasury’s job to hold the line on industrial policy, through the youth contract. We are going to see more remove the implicit subsidy from banking and other voluntary work taking place and more job experience. industries, and ensure that economic resources, through, Those are the practical measures needed to tackle youth for example, corporation tax cuts, flow to businesses unemployment. that can succeed without state support? Manufacturing Sector Danny Alexander: I agree with my hon. Friend. I am sure that he would agree with me that the Vickers report on the banking sector does precisely the first thing he 2. Tom Brake (Carshalton and Wallington) (LD): mentioned, and that our approach to corporation tax— What fiscal steps he is taking to encourage investment reducing headline rates year by year to the lowest level and growth in the manufacturing sector. [104790] in the G7 and one of the lowest levels in the G20—precisely achieves the objective that he set out. The Chief Secretary to the Treasury (Danny Alexander): The Government have taken a number of steps to Mr David Hanson (Delyn) (Lab): Will the Chief Secretary support manufacturing industry, including: reducing tell the House whether he read the explanatory notes on corporation tax rates, with the main rate falling to his VAT on caravans proposal? If he did read them, why 22% by 2014, which is the lowest in the G7; introducing on earth did he support a proposal that reduces demand a new above-the-line credit to support research and in manufacturing by 30% and hits tourist industries, development in the UK; and introducing the patent box such as those in my area, 100%? Will he now review it? to reduce tax on profits from patents. Danny Alexander: Of course I did read the explanatory Tom Brake: Was the Chief Secretary as shocked as I notes. The right hon. Gentleman will know that we have was to hear the shadow Chief Secretary say on “Newsnight” listened to the representations in favour of extending that she opposed the coalition Government’s corporation the consultation period and have extended the deadline tax cuts? Will he set out what particular measures could to 18 May to enable individuals such as him, and his help businesses such as Monument Tools, a manufacturer constituents, to make representations as part of that of tools in my constituency that is able to compete with consultation.

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