Peter Aldous welcomes the Government’s consideration of the case to fill the funding gap in the stalled Lowestoft Tidal Barrier project which will protect property and unleash the provision of new homes and business opportunities and seeks assurance from the Secretary of State that he will leave no stone unturned in working across Government so that the project can restart.
Peter Aldous (Waveney) (Con)
T5. Lowestoft is the largest town in the UK without formal flood defences, with the tidal barrier project on hold due to cost increases. I am most grateful to Ministers for considering the compelling case to fill the funding gap that would enable a scheme to proceed that will protect property and unleash the provision of new homes and business opportunities. Will the Secretary of State assure me that he will leave no stone unturned in working across Government so that the project can restart ? (901999)
The Secretary of State for Environment, Food and Rural Affairs (Steve Barclay)
I pay tribute to the amazing campaign led by my hon. Friend on behalf of those in his constituency. Already, £80 million of support has been secured from the Department for Environment, Food and Rural Affairs for that scheme. He will be aware that the local authority has changed the scope and driven the cost, so there is a question as to what contributions are made by partners, but he is a formidable champion of the scheme and £80 million has already been allocated.
Peter Aldous backs the Government’s plan to halve inflation, grow the economy and reduce debt but highlight the need for investment in skills and infrastructure and raises concerns about extending the sunset clause on the energy profits levy which could deter investment in important local growth industries such as offshore wind, and about the impact of the abolition of the furnished letting concession in areas where holiday lets do not distort the local property market but are vital to the local economy.
Peter Aldous (Waveney) (Con)
My right hon. Friend the Chancellor of the Exchequer is quite right to focus on improving the UK’s economic activity, where, as we have heard, we should be doing much better. We have a flexible labour market, and it is vital that we do not imperil it, but we also need a long-term strategy for investments in skills and infrastructure so that our economy can move into top gear, we can compete globally with the highest-performing economies, and we can bring prosperity to all corners of the United Kingdom.
There are measures in this Budget that are particularly welcome and which will help improve our economic performance. The 2p reduction in national insurance contributions and the increase in the child benefit threshold remove barriers to work. It is also vital that we secure investment for the businesses of tomorrow. The £1 billion for the renewable electricity auction allocation round 6, the £270 million combined Government and industry investment into research and development projects in the automotive and aerospace industries, and the £120 million for the green industries growth accelerator will all help to achieve this.
In almost every Budget, it is important to be wary of and to guard against unintended consequences, and there are two that I will briefly highlight from last Wednesday. First, I understand the rationale for extending the sunset clause on the energy profits levy, but there is real concern that this will deflect and deter investment for the industries of tomorrow: offshore wind, carbon capture, and hydrogen. These industries are vital to enhancing our energy security, bringing jobs to coastal communities and delivering our net zero targets, and I am concerned that, as the levy proposals stand, they could deter that vital investment. For my part, I shall be studying closely the provisions of the spring Finance Bill, and I would urge the Government to re-engage with industry at every opportunity.
Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)
The hon. Member’s point about offshore renewables is very important. Does he agree that we must ensure, as a nation, that we construct those floating wind turbines in the UK rather than overseas?
Peter Aldous
Yes. If we look at the offshore wind sector deal that was signed in 2019, we can see progress in building local supply chains, but I share the hon. Gentleman’s doubt to a degree. There is still a lot more work to do, and on the manufacturing side of things I would agree with him that that could take longer than for other aspects of those local supply chains.
Secondly, I likewise acknowledge why the decision has been made to abolish the furnished letting concession. There are areas of the country where holiday lets are badly distorting the local property market, as we heard from my hon. Friend the Member for Cities of London and Westminster (Nickie Aiken), who is no longer in her place. She made that point clearly, but there are many other areas of the country where holiday lets are not distorting the local property market. They are a vital part of those local economies, which are often in rural areas where there are limited other job-creating opportunities, and restrictions and limitations on the opportunity to diversify a business. Many such properties are also subject to planning conditions that prevent them from becoming available for full-time occupation on the open market. It is therefore important to be cognisant of the full impact of this proposal before proceeding. I see that the Financial Secretary to the Treasury, my hon. Friend the Member for Mid Worcestershire (Nigel Huddleston) is listening. We need a full impact assessment of that proposal before it advances.
To remove the stubborn productivity gap, it is vital to invest in skills and infrastructure. With such initiatives as the local skills improvement plans and lifelong learning, the Government have rightly recognised the importance of providing people of all ages with the opportunity to acquire the skills that are needed for the many new and emerging industries that are coming forward. Further education colleges and trainers currently face obstacles in recruiting staff, recovering VAT and supporting those who need to catch up on their learning following covid. It is therefore disappointing that no measures to address these challenges were announced last week.
Investment in infrastructure is vital if the east of England is to realise its full potential. It is therefore vital that funds are made available straightaway so that work on the Ely and Haughley junction rail improvement can begin without further delay. There were welcome announcements on this in the autumn statement, but there is local concern that the Government might be reverse ferreting on this issue. I hope that my concerns can be allayed.
This winter, the Norfolk and Suffolk coast has taken a battering that it has not seen for a very long time. In my constituency, in Lowestoft, Pakefield and Kessingland, this has undermined investment in the town centres, the ports and the tourism industry, including its vital leisure parks and caravan parks. Schemes have been prepared to protect these people and their property, and it is vital that they get under way as quickly as possible.
The Government are right to stick to the plan to halve inflation, to grow the economy and to reduce debt. As I have said, I believe that the Budget’s welcome initiatives will help to achieve those goals, but all around the UK, and particularly in East Anglia, we need to press ahead with strategic investment in both people and infrastructure—in flesh and blood and in concrete and steel.
Peter Aldous makes interventions in a Westminster Hall debate to highlight the fact that is already accepted by the Parliamentary and Health Service Ombudsman that women were not properly advised and informed and to call on Parliament to make recommendations to Government when the ombudsman’s final report is published.
Peter Aldous (Waveney) (Con)
I thank the hon. Member for securing the debate and for the great work he is doing. Unfortunately, Sir Gary, I have to leave early, so I will not be making a speech. The hon. Member said that the so-called WASPI women “argue” that they were not properly advised and informed, but the stage 1 report produced by the Parliamentary and Health Service Ombudsman actually confirmed that they were not properly advised and informed.
Jim Shannon (Strangford) (DUP)
I thank the hon. Gentleman for that, and he is absolutely right. I will come to that point and confirm it. The issue is all about fairness and equality, but, with respect to the Minister and the Government, they have fallen down on that.
Peter Aldous
I apologise. I was hesitating before saying anything because I did not want to stop the hon. Gentleman in his flow setting out what Government need to do. Does he recognise that there is a vital and pivotal role for Parliament to play when we receive the ombudsman’s final report in considering it and making recommendations to Government, which the Government should then properly and fully respond to so as to uphold the office of the ombudsman?
Jim Shannon
I had not finished; I was giving way to the hon. Gentleman. I am almost there, by the way. I will keep to your timescale, Sir Gary, simply because everyone here deserves to give their input. I told you I would do that and I will do that.
Compensating those 3.8 million women is recognition of the place in history held by that wonderful post-war generation. I say that again because that is why I am here: to speak for those ladies who contact me in my office all the time. Those are the women who have collectively and individually played a pivotal role in shaping and inspiring change in society. We salute those women for what they have done over the years. They have contributed to the workforce and society throughout their lives, and they deserve to retire with dignity and financial security.
Peter Aldous flags up concerns that the current maths and English functional skills requirement is an obstacle to a wider range of employers taking on apprentices, and calls on the Government to consider embedding English and maths elements into the apprenticeships standards.
Peter Aldous (Waveney) (Con)
18. What steps her Department is taking to help increase the number of occupations for which apprenticeships are available. (901915)
The Secretary of State for Education (Gillian Keegan)
I join you in your comments, Mr Speaker. My thoughts are with the family of Tommy McAvoy.
Thanks to this Conservative Government, nearly 70% of all occupations are accessible via an apprenticeship. That is a far greater reach than countries admired for their technical education such as Germany and Switzerland. I am sure that many Members joined the Prime Minister, the Chancellor and more than 60 ministerial colleagues out and about during National Apprenticeship Week. I was delighted to join Harry, Chloe and other EDF Energy apprentices off the coast of Blyth, as well as apprentices who are launching exciting careers at J.P. Morgan in the City. Apprenticeships are the route to a successful career, no matter where apprentices live or what they want to do.
...
Peter Aldous
I am most grateful to my right hon. Friend for those answers. Progress is being made, though the feedback that I am receiving is that the current maths and English functional skills requirement is an obstacle to a wider range of employers taking on apprentices. To remove that barrier, will my right hon. Friend consider embedding English and maths elements into the apprenticeships standards, so that they are relevant to the job role and employers can be confident that apprentices are acquiring the skills that they need to succeed?
Gillian Keegan
The Institute for Apprenticeships and Technical Education works closely with employers to ensure that all essential skills, including English, maths and digital, are embedded into apprenticeship standards, and it will continue to do so. We are also increasing funding by 50% to help more apprentices achieve up to a level 2 English or maths qualification alongside their apprenticeship if they do not already hold one, to help them get on in work and in life.
Peter Aldous highlights the challenges facing social care in places like Suffolk, where the population is increasingly elderly, and calls on the Government to commission a long-term workforce plan for adult social care equivalent to that for the NHS.
Social Care
Peter Aldous (Waveney) (Con)
3. What progress her Department has made on reforming social care. (901797)
The Minister for Social Care (Helen Whately)
We are making great progress on our 10-year vision for adult social care reform. We have introduced the first ever national career structure for care workers, and we have introduced new assessments by the Care Quality Commission, which will shine a light on how well councils are delivering their social care duties.
Peter Aldous
I am most grateful to my hon. Friend for that reply. In Suffolk, where the population is increasingly elderly, social care is under enormous pressure, and it is a significant challenge to recruit carers, pay them fairly and provide them with a proper career path. Therefore, I heard what my hon. Friend said, but will she consider commissioning a long-term workforce plan for adult social care equivalent to that for the NHS?
Helen Whately
My hon. Friend is right about the importance of the social care workforce: social care is its workforce. I can assure him that we already have a plan for the care workforce, set out in the “People at the Heart of Care” White Paper, and now we are putting it into practice. Our care workforce pathway is already being implemented, our new accredited qualification for care workers will be launched later this year, and we are backing social care with up to £8.6 billion in extra available funding.
Peter Aldous co-signs a letter from MPs calling on the Chancellor to increase funding to enable local councils to provide quality special educational needs and disabilities (SEND) support.
Peter said:
"It is really important that local authorities have the resources they need to be able to provide quality SEND support in our schools. I have no hesitation in supporting calls for the Chancellor to increase SEND funding in the Budget."
Peter Aldous leads a debate on Colleges Week to celebrate the great work that colleges do, highlight where Government policy and support are working and examine the areas where more work and attention are required so that colleges can realise their full potential for the benefit of the people and the communities they serve.
Peter Aldous (Waveney) (Con)
I beg to move,
That this House has considered Colleges Week 2024.
It is a pleasure to serve with you in the Chair, Sir Robert, and I thank the Backbench Business Committee for granting this debate during Colleges Week, which runs from Monday until tomorrow. I should also point out that I chair the all-party parliamentary group for further education and lifelong learning, the secretariat for which is provided by the Association of Colleges, to which I am grateful, among others, for the briefings and support they have provided ahead of the debate.
This debate essentially falls into three parts: first, celebrating the great work that colleges do all around the country; secondly, highlighting where Government policy and support are working; and thirdly, pointing out the areas where more work and attention are required so that colleges can realise their full potential for the benefit of the people and the communities they serve.
It is important, first, to celebrate the great work that colleges are doing. All around the UK, they are an essential part of our education system. They are firmly embedded in their local communities, where they are fully cognisant of the opportunities and challenges and the strengths and weaknesses of their local economies. They enable people of all ages and backgrounds to realise their full potential. They are key players in boosting local regeneration and levelling up and in eliminating the gaps in skills and productivity, which are in danger of ever widening. They also play a vital role in preparing people for the jobs of tomorrow, which, all of a sudden, are with us today in areas such as digital, artificial intelligence and the low-carbon fields.
Colleges touch all our lives. English colleges educate 1.6 million students every year and employ approximately 103,000 full-time equivalent staff. Some 925,000 adults study or train in colleges, and 608,000 16 to 18-year-olds study in colleges. The average college trains 950 apprentices, and 100,000 people study higher education in a college. Twenty-three per cent of 16 to 18-year-olds and 27% of adult students are from minority ethnic backgrounds. Twenty-six per cent of 16 to 18-year-olds in colleges have a learning difficulty or a disability, and 58,000 college students are aged 60 and over. In summary, colleges do their job very well. Ninety-two per cent of colleges were judged to be “good” or “outstanding” for overall effectiveness at their most recent inspections. At times, however, colleges feel that they are doing their job with one arm behind their backs, and I shall touch upon that shortly.
I will briefly highlight the great work that East Coast College does in Waveney. It now operates from two campuses, in Lowestoft in my constituency and in Great Yarmouth in the constituency of my right hon. Friend the Member for Great Yarmouth (Sir Brandon Lewis). It fully understands the challenges of coastal communities, the communities in which it is deeply immersed, and works very closely with local authorities, local businesses, the James Paget University Hospital, CEFAS—the Centre for Environment, Fisheries and Aquaculture Science, where the Government’s marine scientists are based in Pakefield next to Lowestoft—and the two universities that cover the area, the University of East Anglia in Norwich and the University of Suffolk, which has its headquarters in Ipswich but operates across Suffolk.
In Lowestoft, East Coast College is an active member of the place board, of which I am also a member, which has overseen the projects carried out as part of the town deal. Its work focuses on two areas: first, the need in the health and care sector to support an ever growing elderly population. It has put in place the Apollo project —not a journey to the moon, but a two-year workforce programme designed to address recruitment and retention challenges in the health and social care sector. Secondly, opportunities are emerging in the energy sector. Among other projects, there are the offshore wind farms anchored off the East Anglian coast and the Sizewell C nuclear power project just down the coast.
In recent years, significant capital improvements have been carried out at East Coast College. Those include the Energy Skills Centre in Lowestoft and the eastern civil engineering and construction campus at Lound, midway between Lowestoft and Great Yarmouth. At present, the college’s challenges centre more on revenue funding, and its needs mirror those of the rest of the sector, to which I shall now turn.
The good news is that, in recent years, there has been a realisation of the vital role that colleges play in providing people with the skills they need to realise their full potential, to address regional inequalities and to ensure that the economy fires on all cylinders. Some good initiatives have been put in place, such as the lifelong learning entitlement, and funding has improved, albeit from a low base. That said, significant challenges remain; some are structural and long term, and others derive from the cost of living crisis and the long and sharp tail of covid.
The Local Government Association points out that
“the national employment and skills system is too centralised”,
“short-term” in outlook, and that
“no single organisation is responsible or accountable for coordinating programmes nationally or locally. This makes it difficult to plan, target and join-up provision.”
It also identified that
“poor-quality, insufficient and fragmented CEIAG”—
careers education, information advice and guidance—
“is a persistent and key barrier to youth employment”,
notwithstanding the introduction, finally, of the Baker clause in the Skills and Post-16 Education Act 2022.
The Edge Foundation focuses on the problem that is all around us: the skills shortages that are getting worse. The shortages are numerous and have grown significantly. The rate of skills investment is in decline, and skills shortages have significant costs for UK businesses, the economy and the environment. The engineering sector is important to me locally, as engineering skills will be much in need to fuel the transition to a low-carbon economy. EngineeringUK, in its “Fit for the future” engineering apprenticeships inquiry, has highlighted the variability and quality of training provision and the problems in recruiting teachers and trainers.
Colleges Week normally takes place in the autumn. This year, however, for good reason, it has been brought forward to the spring—not only so that it takes place in advance of the general election campaign, to provide the sector with every opportunity to set out its stall, but so that urgent representations can be made ahead of next week’s Budget to meet many of the challenges that I have highlighted.
I confess that I was expecting the Minister for Skills, Apprenticeships and Higher Education, my right hon. Friend the Member for Harlow (Robert Halfon), to be here, but it is great to see the Minister for Schools in his place, because he and I have discussed this issue a great deal. I would be most grateful if he conveyed some of these asks to my right hon. Friend the Chancellor of the Exchequer in advance of his Budget statement next Wednesday.
As I have mentioned, there are skill gaps across the country in all sectors of the economy. To eliminate those gaps, I urge the Government to invest the extra money raised from the immigration skills charge to enable colleges to tackle the urgent priorities identified by employers in the local skills improvement plans that are now being rolled out across the country and those that are found in relation to the increased number of skills shortage vacancies revealed in the latest Department for Education employer skills survey.
At the Conservative party conference in Manchester in October, my right hon. Friend the Prime Minister rightly announced a 10-year plan to give young people a better start in life through the advanced British standard, with more hours, a broader curriculum, and extra help for those who have struggled up to the age of 16. Those ambitions are the right ones, but if they are to be achieved —if there is to be any chance of having the teachers, the trainers and the facilities in place to deliver them—we must start investing now. To do that, three issues need to be addressed.
First, the pay gap between those teaching in colleges and those teaching in schools must be closed. It has been widening in recent years and now stands at £9,000 per annum. That pay gap cannot persist if the advanced British standard is to be a success.
Secondly, colleges are disadvantaged when it comes to VAT. Unlike for schools, VAT is not reimbursed for colleges—it cannot be recovered. Colleges in England were reclassified as public sector organisations back in 2022 and are now subject to all the controls that apply to academies, but, unlike academies and schools, they are unable to reclaim VAT under the refund scheme in section 33 of the Value Added Tax Act 1994. That could be addressed by amending that Act. The funds that would be released, totalling around £210 million, could then be reinvested, helping colleges to deliver the improvements to the school system that the Government seek.
Thirdly, as I mentioned, covid has had a long and sharp tail, impacting harshly on young people’s education. The Government recognise that and are providing funding for tuition support to help those with the greatest need to obtain the necessary grounding in English and maths and to catch up on the vocational courses where assessments were deferred. That is good news, but the indications are that the demand for those lessons and courses is still growing. It is estimated that approximately 40,000 more students than last year need to resit their English GCSEs, with 20,000 needing to resit maths. I therefore urge the Minister to do all he can to ensure that the funding for that tuition support is extended.
I am reaching my conclusion, Sir Robert. I am sure that others in this debate will refer to FE and colleges as being the Cinderella of the education system. Indeed, that was right in the past, but my sense is that all parties across the House have recognised the error and folly of that. We are now, after a long time, travelling down the right road, with the importance of vocational learning as provided by colleges being acknowledged and accepted by all. However, we are driving down this road in third gear and we now need Government to provide resources, support and more policies so that we can quickly and seamlessly move into top gear. If we do that, we shall provide opportunity for many and eliminate all those stubborn gaps that I have referred to a great deal during this speech.
Peter Aldous
I am a shade disappointed, not by the quality of the debate but because there was high demand to take part and we have not had as many colleagues as I would have hoped for. There are loads of demands on people’s time. However, what we have lacked in quantity, we have made up for in quality. I am the odd person out in this debate; I am the only participant who has not had a Front-Bench role, so it has been interesting to hear the views of those on the frontline.
The three of us on the Government Benches—I, my right hon. Friend the Member for East Hampshire (Damian Hinds) and my hon. Friend the Member for Harrogate and Knaresborough (Andrew Jones)—have all been here since 2010. Colleges are in a better place, generally speaking, than in 2010, particularly in terms of the quality of their estate. That has certainly improved, but we need to move on. While the shiny new buildings are important, we need the teachers and trainers to be able to help with the learning in those colleges. That is where we have a particular problem. Look at the energy sector that East Coast College is having to deal with: we have a crying need for welders and fabricators, but there is a real challenge in getting those teachers and trainers.
Lord Baker fought for the Baker clause for years. He took too long to get it, but he got it. At some stage, I would welcome some information on how it is going down in practice, because when I go around the community I represent, I cannot say, “Ah! That is a result of the Baker clause.” If we pull a lever in this place, it does not automatically lead to a gear change in the rest of the country.
The one disagreement we have had is on the issue of apprentices. If one looks at where we were in 2010 and where we are today, we are generally in a better place, but the journey has not been smooth—there have been ebbs and flows along the way. I am slightly confused by some of the statistics. It may be that we were in a better place two or three years ago than today. One of the challenges is to get SMEs properly involved in the apprenticeship system.
That brings us on to the levy. The levy is a great idea, and the Government were right to introduce it, but there have been teething difficulties and challenges with money being returned to the Treasury. The Opposition spokesperson, the hon. Member for Feltham and Heston (Seema Malhotra), and I have been in events where I have said that we need to press ahead with a review now, rather than waiting for next year after all the hullabaloo of the election. It must take place now, so that we can iron it out and get it on the right journey.
Finally, here are my funding asks of the Chancellor. This is ultimately about ensuring a level playing field. Colleges are not on a level playing field with schools and academies when it comes to VAT. They are not on a level playing field when it comes to what teachers are paid.
At the beginning of the time that I have spent in this place, there was the problem of colleges having to pick up the pieces for young people who, for whatever reason, had not acquired basic literacy and numeracy skills in secondary education. That situation has improved dramatically, but covid has thrown a big spanner in the works and the colleges are having to work very hard to address that. It is not going to go away immediately, and that is why they need those funds to be extended.
Sir Robert, thank you for bearing with me for a few extra minutes. It has been a good debate.
Peter Aldous questions the Government about improving access to public sector procurement processes for small and medium-sized businesses and, specifically, if the new online platform is on schedule for operation in October.
SMEs: Public Sector Procurement
Peter Aldous (Waveney) (Con)
12. What steps his Department is taking to improve access to public sector procurement processes for small and medium-sized businesses. (901724)
The Parliamentary Secretary, Cabinet Office (Alex Burghart)
The landmark Procurement Act 2023, which this Government passed last year, will deliver simpler and more effective public sector procurement and help small and medium-sized enterprises across the country secure a greater share of that expenditure, which totals approximately £300 billion every year. The Act includes a new duty on contracting authorities to have regard for the particular barriers faced by SMEs and consider what can be done to overcome them.
Peter Aldous
As my hon. Friend has said in his reply, the Procurement Act is I hope the solution to many of these problems, but it is not due to come into force until the beginning of October. Can he confirm that it will definitely come into force then, and that the necessary secondary legislation is in hand?
Alex Burghart
I am pleased to be able to report that, despite the fact that this is complex legislation that requires workstreams in a number of areas—not just secondary legislation, but learning and development for those working for contracting authorities, and a new online platform that will make procurement much easier and better for both those supplying services and those procuring them—we are on track to meet our targets.
Peter Aldous seeks assurance from the Government that it is committed to the collaborative partnership needed between the private and public sectors to ensure the transition of offshore energy from fossil-based fuels to renewables brings investment and jobs to communities all around the UK.
Peter Aldous (Waveney) (Con)
T9. Offshore Energies UK’s industry manifesto highlights the once- in-a-lifetime opportunity that a home-grown energy transition provides to bring investment and jobs to communities all around the UK. This requires close collaboration between the private and public sectors. Can Ministers confirm that the Government are absolutely committed to such a partnership? (901693)
The Minister for Energy Security and Net Zero (Graham Stuart)
I can. What the sector does not need, of course, as OEUK has itself set out, is the tens of thousands of job losses that would be driven by the ideological and climate-damaging obsession of the right hon. Member for Doncaster North (Edward Miliband) with ending new UK oil and gas licensing.
Peter Aldous calls on the Government to take into account the severe unintended impact on the funding of horseracing if the affordability checks designed to protect vulnerable online gamblers go forward in their existing form.
Peter Aldous (Waveney) (Con)
It is a pleasure to serve with you in the Chair, Sir George.
I congratulate the hon. Member for Neath (Christina Rees) on leading this debate. She and I usually have discussions about squash, but I am here to talk about another of my hobbies: horseracing. I have a lifelong interest in and passion for racing. In the past, I have owned legs and hairs of racehorses—not very successfully. At the moment on the farm at home we have a brood mare and we have youngstock, and my ambition—as crazy as it may sound—is to get those horses on to the racecourse. At the moment, the greater problem than affordability checks is dealing with mud fever, but affordability checks are very important. Like everyone else, I know that problem gambling is a major problem, but there is concern that there will be a severe unintended impact on the funding of horseracing if the affordability checks go forward in their existing form.
Horseracing is largely funded through the levy. In recent years additional funding has come in through media rights and sponsorship, but largely it comes from the horserace betting levy, which came in in the early 1960s. I personally think that the Government went down the wrong road with horseracing. It would have been better if we had what is known as a parimutuel form of gambling. As we heard from my hon. Friend the Member for Tewkesbury (Mr Robertson), that is why the prize money is so much higher in places like Hong Kong and Japan, which have incredibly well-regulated industries too.
Horseracing depends to a dramatic extent on the levy. It is quite clear from what I see and the feedback I get that the affordability checks in their current form will have a serious impact on the takings from the levy. Looking at the prize money, horseracing and its funding is facing a real crisis in the UK. My hon. Friend the Member for Shipley (Philip Davies) said that we have the best horseracing in the world, and we do, but that is increasing in risk and becoming an anachronism. There is a real worry that if we let this go on horseracing, will wither on the vine in this country.
Look at the horses in training sales from Tattersalls at Newmarket last autumn. A lot of those horses would have traditionally come out of flat racing, gone into national hunt racing and remained in the UK for racing. They are now going all around the world, to the US or Australia, and there are emerging new industries—in Dubai with the Meydan, and in places such as Bahrain and Saudi Arabia, which are making a real impact. A lot of horses are going to those places and a lot of British owners are racing out there. Members may have watched the racing on Saturday afternoon. The very well-known racing figure Sir Alex Ferguson—where was he? He was at Meydan, not watching his horses run at Kempton. I am worried that that is where we may be heading.
We have heard great stories today; everyone has plugged the racecourses we have all around the UK, and we have heard how important they are for their local economies. That is very true, but there is one point I would highlight, which I picked up in the Racing Post over the weekend. An article said that the Grand National meeting every year puts more money into the Liverpool economy than the Eurovision song contest did last year. We see that repeated at Cheltenham, York and Goodwood and at the festivals that take place all around the country. That is at risk.
The racing supply chain extends far beyond that. It extends into the training centres and into the countryside and on to the studs. There are places where horses are pre-trained, and, importantly, there are places where horses are retrained. When horses have finished their racing lives, they are retrained for alternative uses and activities. The tentacles of racing extend a long way, not just into the countryside but into the towns and the licensed betting offices on the high street. I know that the hon. Member for Swansea East (Carolyn Harris) has a concern about those, but certainly in the town that I represent, there has not been a dramatic increase in LBOs. They are a very important part—
Carolyn Harris
No, I do not.
Peter Aldous
If I have misinterpreted the hon. Lady, I apologise profusely. LBOs are very important on the high streets. They also tend to have a family feel about them in that the staff, many of whom now are women, have a good family relationship with the punters. If people start getting out of control, they very quickly say, “Hang on, do you know where you are going on that?” There is a long supply chain.
We have also heard about unintrusive and frictionless checks. The feedback that I get is that they are very difficult to put into practice. We will either see the rise of the black market—the large article on the front of the Racing Post indicates that that is a reality—or a lot of small punters will say, “Well, I give up. I’m not going to do it.” That then impacts on the levy and it spirals down to the impact on racing.
Finally, there is an element of hypocrisy about this in that the lottery is not included. The lottery is great and it is probably one of the best legacies of the Major Government. Its impact has been profound and positive. When I was growing up, very rarely did we win Olympic gold medals. I remember listening to David Hemery when he won in 1968 in Mexico. We now win in so many different sports, and that is the direct result of the lottery. The lottery is a great thing, but it is a game of chance rather than a game of skill. It is random betting and it can take over people’s lives. I remember one statistic put to me that if I gambled on the national lottery every year since Moses was pulled out of the bulrushes, I still would not have won. We need to look at all forms of gambling and betting together.
In conclusion, I was reading the Racing Post a few months ago. One of its leading journalists, Chris Cook, son of the former Labour Foreign Secretary Robin Cook, made a comment that left me thinking. He said that you would not have expected a Conservative Government to do this to horseracing. I agree with him. On that point, I urge the Minister, who is listening very intently to the great speeches that we have had—
Wera Hobhouse
I have followed the whole of the debate, and I want to say quickly that this is not a party political issue. It is an issue for all those who feel that horseracing gives us so much across all communities. I sincerely hope that the Minister believes it is a cross-party issue that we all must address.
Peter Aldous
The hon. Lady is right that it is not party political, but it is a point that Chris Cook made. If we look back, we all remember seeing Robin Cook at the racecourse in his Barbour jacket, down by the final fence. Alex Salmond is actually a great punter as well. It is not party political but at the moment, we have a Conservative Government, so I urge the Minister to take on board what he is hearing this afternoon.