Andrea Leadsom: Further and faster please, Greg Clark, on bank account number portability

Andrea Leadsom is the Member of Parliament for South Northamptonshire. Follow Andrea on Twitter.

I couldn’t agree more with Greg Clark’s ConservativeHome column this week. It’s imperative that we re-establish the UK as the global leader in financial services. I’m therefore right behind everything Greg is proposing. My only plea is that he should go further and faster.

Specifically, I urge him to introduce full bank account number portability in the Bank Reform Bill. Doing this would mean bank customers could instantly switch between banks and if they wanted they could take their bank account number with them. Like when you change mobile phone provider, and take the telephone number with you, you shouldn’t have to face the hassle of changing bank details when you move. Bank account number portability would radically improve choice for customers, force banks to give better service, and encourage new entrants to the market.

I agree with the Minister that our financial services industry is critical to our economy; he is right to legislate to create a stringent supervisory regime so that banks can no longer look to the taxpayer to bail them out; he is correct that banks need to act in the best interest of consumers; we should have greater competition in the sector; and we should lead the world with our consumer financial services – but I think a real game changer would be bank account number portability.

One of the most striking aspects of the financial crisis, and more recent scandals such as LIBOR rigging, was the lack of choice that ordinary people felt when faced with a tableau of institutional failure. Much has been made of the regulatory shortcomings that contributed to these problems, and public opinion often reflects on the actions of government and regulators. However, not nearly enough attention has yet been directed at the competitive environment itself. And a competitive market is one of the best ways to ensure these problems are not repeated.

Andrea Leadsom MP: It is not "anti-European" to seek repatriation of powers

Andrea Leadsom is the Member of Parliament for South Northamptonshire. Follow Andrea on Twitter.

As the debate over the UK’s future relationship with the EU rages on, a worrying and false dichotomy is developing. Labour Ministers, and others, are attempting to argue that to talk of reform of Europe is 'pro-European', while to talk of repatriating powers to Member States is 'anti-European'. This entirely misses the point. Europe needs reforming, it is happening anyway, and returning powers to Member States is simply one of many tools of effective reform.

The Fresh Start Project, of which I am a co-founder, outlined in its ‘Manifesto for Change’ the powers that we would like to see repatriated to Member States. These include Social and Employment Law, Regional Policy, Fisheries Policy and Energy Policy. The Manifesto also makes the case for the UK to regain full competence in Policy and Criminal Justice. Importantly, significant reforms, that do not include repatriating powers, are also outlined in Agriculture, in Financial Services, in Immigration, in Defence, and in the EU Budget and institutional framework.  The Manifesto also calls for the EU to go further in terms of trade liberalisation, both within and outside of the EU, and for a new Freedom of Information directive to improve transparency and accountability.  This is a comprehensive proposal for reform, of which repatriation must inevitable form a part.

Labour's position on EU reform is simply incomprehensible. During the general debate on Europe in the House last week, the Shadow Home Secretary said “reform rather than repatriation is how to achieve the change in Europe we want”. He then went on to endorse the principles as set out by the Prime Minister, saying “The principles are competitiveness, flexibility, that power must be able to flow back to member states and not just away from them, democratic accountability and fairness. As I have said, the Opposition agree with those principles.”  So how on earth do they propose to achieve reform but at the same time reject repatriation of powers?

Damian Hinds MP and Andrea Leadsom MP: New Tory thinking on social reform

Andrea and Damian outline some of the ideas starting to emerge from the 2020 Conservatives’ Opportunity Society project.

Andrea Leadsom is the Member of Parliament for South Northamptonshire. Follow Andrea on Twitter.

Damian Hinds is Member of Parliament for East Hampshire.  Follow Damian on Twitter.

The arrival of David Cameron as party leader marked a new optimistic, compassionate Conservatism.  The election of 2010 gave the party half a chance to show what that means.  Only half a chance – because of the overwhelming priority of the fiscal emergency and the realities of coalition.

The social – as well as the economic – challenges for the next generation are huge and coming closer to 2015 the party needs to present its distinctively Conservative policies for dealing with these issues.  Conservatives need to paint a picture of the sort of society we want to see and believe can, in time, be achieved.

There are five big challenges.

As Conservatives we believe strong families are the fundamental building block of society.  Support for families should be explicitly at the heart of any Conservative programme.

We need to be ambitious for everyone.  We must widen opportunity, boosting social mobility, even in the face of new pressures from international competition and the ‘hollowing out’ of the labour market.  The ‘global race’ that the Prime Minister speaks of is the context of all policy: we owe it to the next generation to equip them to compete against the new economic superpowers – even as those countries continue to raise the bar.

Andrea Leadsom: Banking Union may not be sexy, but it is important

Andrea Leadsom is the Member of Parliament for South Northamptonshire. Follow Andrea on Twitter.

After the bruising debate on the EU budget last week, all eyes now turn to today's debate on European Banking Union. Make no mistake, this matters. Though it may not seem as exciting, or as easy to comprehend, as the Budget, European Banking Union will have a much more profound effect on the UK. Financial Services are a vital and essential part of the UK economy. We must use the development of Banking Union not merely to safeguard but also to advance this sector.

The government may be nervous about an amendment proposed by Bill Cash MP, Chairman of the European Scrutiny Committee, but in it Bill raises two very important points that the government should welcome. First that safeguards need to be in place, and second, that the current proposals are probably illegal unless accompanied by treaty change. This gives the UK the chance not only to secure safeguards, but also to go further and secure real advancement for UK interests in the financial services sector.

The current proposals for banking union involve the creation of a Single Supervisory Mechanism (SSM) within the European Central Bank (ECB) which would take over many supervisory tasks from national banking supervisors (all eurozone countries, plus those non-eurozone Member States that chose to join--the UK will not be one of them). Through the SSM, eurozone countries would have an automatic majority in the European Banking Authority (EBA) and could therefore dominate decision making, which would then also apply to the UK. The government will be rightly opposed to this unless adequate safeguards are achieved, and the first part of the amendment deals with this issue.

Andrea Leadsom MP: The Reckless Amendment is not in Britain's best interests

Andrea Leadsom is the Member of Parliament for South Northamptonshire. Follow Andrea on Twitter.

It’s a sad day when I have to disagree with Eurosceptic Colleagues — my personal views on Europe are more often in step with theirs — but I think the Reckless Amendment is wrong for Britain. It won’t produce the reform that British voters are looking for, and it could ironically result in higher cost to Britain’s taxpayers, while damaging our scope for negotiations on the direction of expenditure.

The next Multiannual Financial Framework (MFF) — the subject of tomorrow’s vote — sets the maximum spend for the European Union from 2014-2020.  It is surely the expenditure limits within that MFF, however, which are ripe for radical overhaul, and where the focus for reform should be. By far the largest spending items are Structural Funds (regional spending) and the CAP, together accounting for over 75% of the EU budget.  Spending on trade and services, on the other hand, is only around 2%.

Andrea Leadsom MP: The British option for EU reform can be based on trade and less interference

Andrea Leadsom is the Member of Parliament for South Northamptonshire. Follow Andrea on Twitter.

There is no doubt that change is needed. EU legislation and regulation impacts on almost every aspect of life in the UK. The British public are demanding a change. A recent YouGov survey (July 2012) shows that two-thirds want a referendum on or before the General Election in 2015. And almost half - 48 per cent - would pull out if given a choice today, versus 31 per cent who want to stay in. However, as I hear from my own constituents, most people in the UK want a renegotiated relationship with the EU rather than a simple in-out choice. The same YouGov poll suggests that if the UK were to renegotiate a new deal to protect Britain's interests in the EU, 42 per cent would vote in a referendum to stay in, and 34 per cent to leave. And that is why I am working so hard on the Fresh Start Project, to set out the options for renegotiation, and then build support for making it happen.

Whether we like it or not, change is coming. In the foreword to the recently published Fresh Start Project Green Paper: Options for Change, the Foreign Secretary wrote:

“The eurozone crisis is setting in train what may well be profound changes in the structure of the European Union. These will pose very important choices for every country in the European Union, inside the eurozone or out.”

Andrea Leadsom MP: Better early years intervention can help create a generation of emotionally secure children

Andrea Leadsom is the Member of Parliament for South Northamptonshire. Follow Andrea on Twitter.

In the aftermath of the 2011 riots David Cameron was quoted as said "we’ve got to get out there and make a positive difference to the way families work." The anniversary has just passed, and much consternation remains about the so-called troubled families at the centre of the disturbances.

The worst of the rioters are charged with being void of respect and values. It is a fair accusation, but this is not simply learned behaviour from TV shows or the selfish aspects of our social culture.  It's far deeper rooted than that.  In fact, from the first day of a baby's life, the quality of the affection and attention he or she receives from their adult carer (usually Mum) literally shapes the way the brain develops, with profound consequences for how they will develop later in life.

It was striking and disappointing that few recommendations of the Riots, Communities and Victims Panel proposed any antidote to what they identified as the primary cause of the riots: "poor parenting". Louise Casey, who leads the Government's excellent initiative to try and turn around "troubled families" acknowledged when I met her that in an ideal world, we would have a far greater focus on prevention to try and avoid the chaos caused by young people who themselves have suffered a lack of loving attention.

The fact is that an insecure parent-infant relationship can lead to many emotional and social difficulties later in life, so correcting this should be a top priority for any government. Called "bonding" or "attachment" between parent and baby, this critical development point in a baby's young life will predetermine his or her lifelong outlook.

Andrea Leadsom MP, Chris Heaton-Harris MP and George Eustice MP: Regional policy, employment law, energy policy...We want a fundamental renegotiation of the UK's relationship with the EU

Andrea Leadsom is MP for South Northamptonshire. Follow Andrea on Twitter. Chris Heaton-Harris is Member of Parliament for Daventry.  Follow Chris on Twitter.  George Eustice is MP Member of Parliament for Camborne, Redruth and Hayle.

Events in Europe guarantee that the way the EU works is going to change significantly over the coming years. This is a golden opportunity for the UK finally to stand up for its own interests. We set up the Fresh Start Project to enable the Government to get the best possible deal for the British people.

Whatever happens to the Eurozone, the UK's relationship with the EU will change in years ahead. The UK must be clear about the future that it wants, and stand up for its national interest. The Fresh Start Project’s aim has been to research and propose a new relationship for the UK with the EU that will better meet the interests and aspirations of the British people.

At this time of existential crisis for the Eurozone countries, EU leaders need to understand that the UK has its own national interest. It is the sole responsibility of the UK government to promote and fight for this interest and we must do so with our European partners. Eurozone members must give serious consideration to the likelihood that non-euro members will need a different relationship with the EU.

Andrea Leadsom MP: We must defend our financial services like Merkel protects Germany's automotive industry and Sarkozy protects French farmers

Andrea Leadsom is MP for South Northamptonshire. Follow Andrea on Twitter.

Last week the Fresh Start Project published the second chapter of its green paper on EU Reform. This one is on financial services. The project, led by me - together with Chris Heaton Harris MP and George Eustice MP - was set up to look in detail at how the UK can achieve a better relationship with the European Union that works in Britain's national interest.  Over 100 Conservative MPs have given their support to the project.

It's clear that financial services, for understandable  reasons, is a widely despised industry in Britain today. But it's vital to remember that this unpopular industry is not just a bunch of wealthy investment bankers – in fact it employs over a million people in Britain, over 200,000 in Birmingham alone.  Not only that but financial services generates over 10% of all tax receipts each year and makes a massive contribution to our balance of trade.

Within the EU, the UK dominates the financial services sector, representing 36% of the EU’s financial wholesale markets and 61 per cent of its net exports in financial services.

In short, in terms of contribution to GDP, financial services matter as much to Britain as the automotive sector matters to the Germans and more than agriculture matters to the French. That is why we must stand up for the industry no matter how unloved it may be at times.

Andrea Leadsom MP: Apprenticeships have a huge role to play in getting the unemployed into the workplace, education or training

Andrea Leadsom is MP for South Northamptonshire.
Follow Andrea on Twitter.

The state of the economy means many people are nervous about the future. This is especially true of young adults. Not only could they be saddled with the huge public debt they did nothing to create, but also job prospects are tough, particularly for those with no previous work experience. The latest figures show that youth unemployment that rose so fast under the last government remains depressingly high.

The Coalition is absolutely right to take tough decisions now to tackle the deficit. Anything else would be disastrous for Britain ’s economy and our prospects of recovery. But action is also essential at an individual level - young people must be given a chance. One of the best ways to do that is through apprenticeships.

I am delighted that the coalition is taking apprenticeships so seriously. In the last academic year almost 443,000 people started an apprenticeship in England and there has been an increase of around ten per cent in the number of apprentices under 19. Skills Minister John Hayes has said that all apprenticeships for under-19s must last for at least a year if employers are to receive training subsidies – this is not a tick-box exercise but a genuine effort to bring about change. It is money well spent too: it is estimated that every £1 of government money spent on apprenticeships generates up to £40 for the economy.

Andrea Leadsom MP: You should be able to switch your bank account at the touch of a button

Andrea Leadsom is MP for South Northamptonshire.

Earlier this week I attended the launch of Virgin Money, which has bought Northern Rock from the taxpayer. Its current accounts will go live next year and it targets doubling the number of current account customers within 5 years. This is a thoroughly welcome development. High street banking is a sector that has long seen a major lack of competition – four banks enjoy more than 70 per cent share of the market - so it is hardly surprising that it has seen such complacency and incompetence in recent years.

Virgin has been criticised for proposing customers should pay £60 for a current account. But I say good on them!  The concept of "free banking while in credit" is a massive con that certainly doesn’t mean free banking at all.  In fact what happens is that banks keep the interest on our credit balances (where we have them) and charge often usurious fees to those who go overdrawn.  So the poorer are subsidizing the wealthier bank account holders, but in truth, none of us are getting free banking.  

Andrea Leadsom MP: The Prime Minister was right to stand against Brussels, and he might need to again

Andrea Leadsom is MP for South Northamptonshire.

Contrary to much of last week's media, the prime minister did not return from the latest EU summit in shame. As sensible Labour MPs like Kate Hoey made clear, there is nothing shameful about standing up for important British interests. And there is no doubt that, while it may not be popular, financial services is a core industry that is vital to our economy.

The sector employs almost two million people, is this country's most successful export, and is worth around £50 billion to the Exchequer - some 11 per cent of total tax take. Chancellor Merkel would rightly be pilloried if she stood by while the EU carried out an assault on the automotive industry. If David Cameron had any concerns about standing alone, he shouldn't have - he was right to use his veto and in his position, any decent political leader would have done the same.

It has been pointed out that the UK can exercise a veto on the imposition of a Financial Transactions Tax. First, that is no cause for complacency. We thought we had an opt-out from the Working Time Directive but it was imposed on us via health and safety legislation - so there is much to be said for drawing a line in the sand.  And anyway, the FTT is just one proposal of many. Another, astonishingly, is a proposal that trade in euro-denominated products should be relocated to the eurozone - blatant in its attempt to steal business from London...

In fact there are now 49 directives and measures coming from the EU that are principally focused on restricting or even banning financial activity rather than smart regulation. These measures would seriously harm Britain's current interests, but would also restrict our ability to compete in the fast growing markets in Brazil, India, China and elsewhere in Asia.  It is in these markets that our growth prospects lie, and we cannot afford to let poor EU legislation hold us back.

Andrea Leadsom: It's vital that the Prime Minister protects the UK's financial services industry at this week's summit

Andrea Leadsom is the Member of Parliament for South Northamptonshire and a member of the Treasury Select Committee. 

Ahead of the crucial European Council meetings, I agree with the Prime Minister's statements that the primary needs are to reach agreement to restore stability in the Eurozone and to defend and promote the UK’s national interest. Stability in the Eurozone is clearly in the UK’s national interest, as are protecting access to the single market and defending the financial services industry in the UK.

Although unpopular with voters for understandable reasons, the financial services industry employs nearly two million people, accounts for 10% of GDP, and generates over £50 billion in tax receipts annually in the UK. It is a vital national interest that must be protected. The UK is a gateway to the EU for financial services, but it is important that we also look to the faster growing markets of the BRIC countries and others around the world. We must not get tied down by EU legislation that would prevent our businesses accessing these markets.

Up until the credit crunch of 2008, EU policy on financial services was generally helpful to the City of London, expanding market access and liberalising financial markets across Europe. London was rightly seen by EU policy makers as a leader in the field and an asset to Europe. Since the crash, the response from UK and EU policy makers has been markedly different. EU policy is generally to restrict the activity of financial markets—the default reaction appears to be: if you don’t like it, ban it. UK policy is to improve regulation and supervision, going further in some cases, such as the Vickers report on banking, than currently allowed under EU law.

Andrea Leadsom MP: The work has begun on how we might repatriate powers from the EU

Andrea Leadsom is MP for South Northamptonshire. Elected yesterday as joint Chairman of the new All-Party Parliamentary Group for European Reform she reviews yesterday's first meeting and its focus on repatriating social policies.
Follow Andrea on Twitter.

At a time of existential crisis in the Eurozone, it may seem harsh to some that a new All Party Group was set up yesterday to begin analysis of what and how powers may be repatriated to Britain from the EU.  Eurozone leaders urgently need to shore up their currency with a substantial and solid financial underwriting.  But while they focus on how to rescue their currency, it is vital that we don’t ‘down tools’ in looking at how Britain can get a better deal out of our EU membership.

Europe may not score highly when voters are asked to list their primary concerns, but most understand that the EU impacts on jobs, financial services, healthcare, working practices and immigration, to name but a few.  In fact, the EU colours almost everything and at a time when its future is under the spotlight, it is vital that we are not simply passengers in a journey towards a Eurozone fiscal union, but that we also take a long hard look at what Britain wants out of the almost inevitable treaty changes that lie ahead.

The Government, through the Coalition Agreement, is committed to a number of potential changes, including examining the balance of the EU’s competences, limiting the application of the Working Time Directive and focusing on defending the UK’s interests in EU budget negotiations.

Andrea Leadsom MP: Is a two speed Europe back on the agenda?

Andrea Leadsom is MP for South Northamptonshire and a member of the Treasury Select Committee.
Follow Andrea on Twitter.

The Eurozone crisis seems to be reaching the beginning of the end phase....for too long we’ve limped on with this pretence from European leaders that Greece can somehow survive intact. The reality is that Greece is uncompetitive and has been fiscally utterly irresponsible - Greece does not have the infrastructure to enforce taxes; their retirement age is too young; their public sector is too powerful, and from the action on the streets they don’t in any case have the public appetite for the severe austerity that could save their economy.

I think it’s inevitable that Greece will default. What Greece should do, and what it should have done 18 months ago, is to leave the Euro and renegotiate its debt. The markets can cope with sovereign default - there have been many over the years; what they cannot cope with is uncertainty and lack of transparency.