By Matthew Barrett
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Following on from the last few days' rolling blogs, I have below a final list of the MPs (and Baroness Warsi) appointed as Ministers for each department. I have put new appointments in bold.
Department for Business, Innovation and Skills
Department for Communities and Local Government
By Matthew Barrett
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Of the Parliamentary groupings founded by MPs after the 2010 general election, the 2020 group is perhaps the least understood. Channel 4's Michael Crick and the FT (£) covered its launch during conference last year. Those two reports implied the 2020 group was a centre-left grouping pre-occupied with "countering the rise of the right". The 2020 is not about bashing the right. It's about upholding the ideas and optimism of the Cameron leadership era, and ensuring they can help inspire a majority Conservative government. In this profile, I will take a closer look at the 2020, its aims, role, and plans for the future.
Origins of the Group:
The 2020 was founded in Autumn 2011 by Greg Barker, the Minister of State for Climate Change, Nadhim Zahawi (Stratford-upon-Avon), and George Freeman (Mid Norfolk), with Claire Perry (Devizes) joining soon after. It was launched at conference last year.
Members of the group (see below) are drawn from across the ideological spectrum (one member told me the 2020 tries to "reject the stale orthodoxies and dogmas of the old left versus right split in the Tory Party"), but members are united in wanting to develop conservatism and what the Party might look like in 2020. Founder George Freeman said: "The 2020 was set up as a forum to help the new Conservative generation define a modern progressive Conservatism for our times. What is the DNA that unites this diverse new generation? What are the long term social, economic, and technological changes that will shape our world? By tackling these and related questions we hope to help Conservatives define and dominate the radical centre ground of British politics."
Fellow founder Greg Barker explained another aspect of 2020's mission: "There's a strong strain of optimism that ran through the early Cameron message, and that message of change, hope and optimism, sometimes because of austerity, gets overshadowed, and we see ourselves as the guardians of that message".
By Tim Montgomerie
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Yesterday on ConservativeHome Ruth Lea questioned the continuation of UK aid to India. Her sceptical position is shared by most Britons. By 60% to 14% voters told YouGov that aid spending should be switched to countries with greater needs.
In a letter to The Telegraph Tory MPs Bob Blackman, William Cash, Stephen Hammond, Richard Harrington, Pauline Latham and Jeremy Lefroy have come to its defence (my emphasis):
"SIR – In the debate about British aid to India, we believe our programme in India is helping to rebuild lives and is also in Britain’s long-term interest. While it is true that India is a growing economic force, it is also home to a third of the world’s very poorest people. It is right for Britain to work with the Indian government to help tackle this dire poverty.
It is also right to ensure that our aid is targeted effectively. We welcome the Coalition Government’s radical overhaul of the Department for International Development’s aid programme to India: freezing the amount spent and targeting it at three of the poorest states. India is a vital strategic ally with whom we share extensive connections; more than 1.6 million British Indians live here. With India we share democracy, the English language and trade links that amount to billions of pounds. India will be an essential partner if we are to rebalance our economy and improve human rights around the globe.
Providing short-term support to ensure people in India can eat and live should not be contentious. We do not believe our aid programme should continue indefinitely, but now isn’t the time to turn our backs."
I certainly agree. DFID notes that "a third of the world's poorest people (living on less than 80p a day) live in India – more than in sub-Saharan Africa". Just because the Indian government has the wrong spending priorities, the poor citizens of its country should not suffer.
Other signatories include a number of business people plus Lord Popat of Conservative Friends of India and Baroness Jenkin of Conservative Friends of International Development.
by Paul Goodman
Stephen Hammond (Wimbledon) returned to Labour's debt legacy -
"The shadow Chancellor was wrong blindly to dismiss what is happening in the gilt markets. I read the yield curve this morning, just as he did, and it is clear that 10-year gilts yields are low at the moment. If the market believed that the Government’s debt reduction plan was going to change, those yields would undoubtedly rise and the cost of borrowing would rise substantially from £120 million a day, ruling out any prospect of more of the things that we really want to spend public money on. Labour Members shouted out, “Too fast, too deep,” yesterday, but they should remember that there are risks involved, and that theirs is an equally dogmatic strategy.
The shadow Chancellor, in contending today that the changes were too fast and too deep, once again relied on the Keynesian multiplier. He is an eminent economist, and he should know better than to rely too heavily on that mechanism. It has traditionally held out the prospect that public sector investment has an impact on the private sector, so there could be an element of crowding out and of limiting of growth potential. If the right hon. Gentleman has read the recent academic research, however, he will also know that the size of the multiplier in the growth phase of an economy is about a third of the size of the multiplier when an economy is going into recession. To rely on that thesis is therefore to rely on a very weak economic mechanism."
Sam Gyimah (East Surrey) drew on his business experience -
The hon. Member for Coventry North West (Mr Robinson) mentioned bank lending, but fast-growing companies’ revenues are often volatile and their cash flows can be unpredictable. Banks do not want to lend to them, so we need to be able to create an environment for equity lending. One thing we know in the UK is that, if people want to raise amounts below £2 million, they find it incredibly difficult to do so. Such risk capital, however, encourages businesses to take a risk—to take on the new plant, to hire new staff—so it is great that there are so many changes to the enterprise investment scheme in “The Plan for Growth”.
Increasing relief to 30% means that someone who is going to invest in a business knows that they can offset 30% of their investment against tax. It will encourage people to take sensible risks and invest in those companies that will drive growth. Raising the relevant annual limit to £1 million and to £10 million per company means that companies can seek capital from high net-worth and private individuals, not just from institutions. Anybody who is involved in small businesses knows that people often rely on friends and family to support their business in its early stages, so it is good to see the Government backing those who are ready and willing to take such risks.
Raising the limit on qualifying companies to 250 employees means that the measure will apply not just to start-up companies, where the failure rate can be quite high, but to well-established companies that need capital to grow. I would like to see what more the Government can do to allow connected persons to enjoy such tax reliefs, because connected persons—directors—cannot enjoy them at the moment, and that is where businesses get much of the expertise that they need. By making investment in small businesses easier, the Budget recognises and encourages people who are willing to take risks."
And Julian Smith (Skipton and Ripon) also spoke about business -
"The most exciting aspect of yesterday’s Budget was the direction of travel the Chancellor set in respect of the conditions for business that he wants in Britain, because growth will ultimately be achieved through the individual efforts of business leaders, not through Government. The 2% cut in corporation tax signals to companies that Britain is once again open for business. It is now clear to every potential investor, in the UK and overseas, that this Government are committed to putting in place the best corporation tax rates in the G20 by the end of this Parliament. Overnight, global companies such as WPP have said that that will make a difference to their decisions on where to invest. That is great news.
The Budget also encourages those who want to set up a business to go for it. It contains a big nudge from the Government for people to give entrepreneurship a go. There is a golden carrot to dangle before those thinking of taking a risk: a 10% capital gains tax rate up to £10 million. The profit motive is a motivator, and the Budget clearly says, “If you believe in your business, take the risks and are successful, you will be much better off financially.” Therefore the message is, “Unless you’re a cracking singer or can dance like the Business Secretary, forget `The X Factor’ and `Strictly’; this Budget gives you a golden ticket to join start-up Britain.”
The moratorium on new legislation for small businesses with fewer than 10 employees will be a big relief for entrepreneurs, who need to be fully focused on jobs and growth rather than the latest wheeze from Whitehall. When I was a small business owner, dealing with employment law took more time than any other management responsibility. Employment laws and regulations have been piled on British business since 1997."
Michael Fallon (Sevenoaks), a Party Deputy Chairman and Select Committee member, decided to make constituency points to illustrate his general ones -
I am struck in my constituency by how many companies succeeded in growing even under the previous Government, without direct subsidy or specific grants. I visited three recently. The Sevenoaks energy academy, which I had the honour of opening last year, trains hundreds of engineers in renewable energies, providing courses in fitting solar panels, rainwater harvesting and so on. One of Sevenoaks's most dynamic business women, Julie Walker, made a £1.5 million investment in that academy, and I welcome that.
Michael Fallon: I will not, if the hon. Gentleman will excuse me. Secondly, Vine Publishing is a new media company in my constituency, which is heavily involved in all kinds of print and digital work. Its turnover now approaches more than £3.25 million and it employs 12 people. It was founded by three entrepreneurs, who dropped out of university because they preferred to go into business.
Thirdly, I attended the opening of the Ideal Waste Paper Company this month. It has built a major new recycling facility at Swanley-a £14 million investment, creating 60 new jobs and recycling more than 250,000 tonnes a year.
Those are examples of companies of the future, in the new technologies, the new energies and the new media. We should all ask ourselves how we get more of them. Of course, getting the long-term climate is right, but we must also address how to make it easier for people to set up such companies."
As did Jessica Lee (Erewash) -
"I was particularly delighted to hear the announcement about the establishment of an enterprise zone for Derbyshire and Nottinghamshire. My constituency is right in the heart of that area, and I will do my best to ensure that we are its beating heart; I will fight for an appropriate level of investment. We also have some of the centres of innovative manufacturing that were announced yesterday, at Loughborough university and the university of Nottingham. Again, many young people in my constituency could benefit from that training and help, and I will do all I can to make those facilities available to them.
The enterprise zones will follow the structure set out in the local enterprise partnerships. We were lucky to have a strong LEP application for Derbyshire and Nottinghamshire from the outset, and it was one of the first to be accepted. That group is already taking great steps towards being up and running, so that it can take in bids and bring in investment and jobs. I think that the enterprise zone will assist in that even further.
Finally, the freezing of council tax will benefit hard-working families in my constituency. We are lucky in Erewash because this is the second year running in which the borough council has frozen council tax. That will really help people."
The 82-day summer parliamentary recess means that ministers cannot be held accountable by MPs for their actions until October. It also means that ministers can avoid making announcements to Parliament on account of the fact Parliament is not sitting (although their record at doing so even when it is sitting is hardly exemplary).
Yesterday saw the first complaint of the recess from the Opposition front bench with shadow transport minister Stephen Hammond writing to the Speaker complaining about the Government's announcement about the electrification of a major rail line just two days after the Commons began its recess.
Here's the letter Mr Hammond has sent to the Speaker:
Dear Mr Speaker,
I write to protest about the discourtesy shown to the House today by the Secretary of State for Transport.
This morning, merely two days after the House rose for the summer recess, Lord Adonis made a major announcement on the UK national rail network – with significant implications for public spending. The announcement to electrify the main rail route between London and Swansea was made on the morning BBC broadcast.
Yesterday saw questions to Transport ministers.
Congleton's Ann Winterton (right) - who is an assiduous attendee of oral questions - asked about rail prices:
"What recent assessment he has made of levels of rail fares. 
The Secretary of State for Transport (Mr. Geoffrey Hoon): We continue to regulate rail fares to balance the protection for passengers and taxpayers while allowing significant investment in rail. We have made it clear that the average cap—usually the retail prices index plus 1 per cent.—will be applied next year even if RPI is negative, leading to lower regulated fares in January 2010. From January 2010, the cap will also apply generally to individual regulated fares.
Ann Winterton: The Secretary of State will be aware of the horror expressed by commuters and passengers about the huge hike of more than 6 per cent.—the figure is much higher in some areas—in rail fares this year. I welcome his reaffirmation on behalf of the Government that fares next year will be pegged to the standard formula, but will he also assure us that rail companies will not cut services?
Mr. Hoon: The hon. Lady refers to regulated fares. To deal with her last point first, the services are governed by the franchise agreement entered into by the train operating companies. Of course, we will not allow those agreements to be changed without a clear, good reason. To deal with the generality of her observation, support for railways comes from two sources: fare-paying passengers and taxpayers. If we are to maintain the level of investment in our railways that I think we should have, we have a clear choice. We can either allow fares to be increased according to the consistent arrangements that have operated for many years, or we can increase the subsidy from the taxpayer. If she is unhappy about the balance that we have struck, she needs to say so, as does her party. Instead of simply making generalised complaints, I want to hear what specific proposals the Conservative party would make about fares and the level of taxpayers’ subsidy."
Shadow Transport Minister Stephen Hammond posed a follow-up question on the same subject:
"The facts show that the Passenger Focus report published in February this year highlighted value for money as the most serious concern for passengers. The facts also show that the most packed trains are running at more than 170 per cent. capacity and that, since 2003, regulated and unregulated fares have risen by a third. Do not the facts show that after a decade of Labour control, the story is one of overcrowded trains, value for money falling, and the taxpayer having to pick up the tab?
I would not want the Conservative party to feel that I was letting it off the hook after the comments that I made about the Liberal Democrats. If the hon. Gentleman gets his way and eventually ends up on the Government Benches taking the decisions, he will have £840 million less to spend on the railways and on transport in general than has been spent by this Government. He and his party have to explain how they will manage to continue with investment in much-needed projects such as Crossrail at the same time as cutting the railway budget."