Coalition outlines higher education funding priorities for 2015/16

The Department for Business, Innovation & Skills has today issued its annual Grant Letter to the Higher Education Funding Council for England (HEFCE) – confirming that the total funding available to universities is expected to rise, as planned, from £11.1 billion to £12.1 billion in 2015/2016.

The letter, asks HEFCE to continue to pursue priorities for supporting high quality science, technology, engineering and maths (STEM) provision, widening participation in higher education and recognising the needs of small and specialist institutions. The letter highlights the themes of the Science and Innovation Strategy in recognising the importance of excellence, collaboration, agility, place and openness.

In addition to outlining spending priorities, ministers use the letter to express their support for the work universities are doing to encourage diversity, and believe more work can be done at university boardroom level. Currently only around 19 per cent of Vice Chancellors are female.

Business Secretary Vince Cable said: "Universities are now well funded for the long term which means better facilities, better quality teaching and a better student experience. This is a record we can be proud of. Many universities have also taken some steps to address diversity in their senior management teams, but with only one in five female Vice-Chancellors there is definitely room for improvement. I encourage them to continue their work in this area to mirror the excellent progress that has been made in the FTSE 100 boardrooms.”

Ministers request the Council to work with higher and further education institutions to develop innovative curricula that will help advance science, technology, engineering and maths skills and meet employer needs for recruits with greater technical expertise. The call comes as the cap on the number of students higher education institutions can recruit is removed from the 2015/2016 academic year.

Minister for Universities, Science and Cities, Greg Clark said: "Our universities are among our most vital assets with a worldwide reputation for excellence. By reforming the system of university finance we have allowed universities to grow even at a time of public spending constraints, permitting the historic step to abolish the cap on student numbers which had previously kept some talented people out of higher education. We have further to go, but last year’s 11 per cent increase in the entry rate of young people from the most disadvantaged backgrounds shows the momentum is now established. Investing in our universities and in our students is an investment in the future strength and prosperity of the country and this funding letter demonstrates our unswerving commitment to supporting higher education."

In the letter ministers also welcome HEFCE's roll-out of the National Networks for Collaborative Outreach, and the results of their innovative work on higher education cold spots. Both of these have an important role to play in increasing access to university and will ensure the benefits can be felt across the whole of the UK.

Fines for supermarkets who treat suppliers badly announces Cable

Measures to grant the Groceries Code Adjudicator (GCA) powers to fine UK supermarkets have been laid in Parliament, Liberal Democrat Business Secretary Vince Cable has announced. The Adjudicator will be able to impose penalties on large retailers of up to one per cent of a companies’ annual UK turnover, dependant on the seriousness of the breach of the Code. 

It comes despite Tory opposition to grant the watchdog the powers it needed to do its job. The GCA has published guidance on the principles that will be used to calculate the level of any fine. The Code imposes on the supermarkets an overarching principle of fair dealing with their direct suppliers, including farmers.

It includes specific provisions governing terms of supply, timing of payments, marketing and promotional costs, and payments as a condition of being a supplier. The Code does not govern issues relating to pricing. These new measures will add to existing powers to issue supermarkets with recommendations as to their future conduct, and to ‘name and shame’ those that have breached the Code.

Liberal Democrat Business Secretary Vince Cable said: “The Groceries Code Adjudicator is a Liberal Democrat idea and was designed to make sure suppliers, such as farmers and small businesses, are given a fair deal by supermarket giants. Despite Tory opposition this important final step will give the GCA the power it needs to address the issues in the supply chain, between grocery retailers and their direct suppliers." 

"I am pleased today to be giving the Adjudicator the final element in a set of powers that will give this new body all the tools it needs to succeed in this challenging and important role." Dr Cable added

Taskforce to assess judgment in holiday pay ruling

Business Secretary Vince Cable has today announced he is setting up a taskforce to assess the possible impact of the ruling on holiday pay from the Employment Appeal Tribunal. The taskforce will consist of a selection of Government departments and business representative groups. The taskforce will provide a forum to discuss how the impact on business can be limited. 

Business Secretary Vince Cable said: "Government will review the judgment in detail as a matter of urgency. To properly understand the financial exposure employers face, we have set up a taskforce of representatives from Government and business to discuss how we can limit the impact on business. The group will convene shortly to discuss the judgment. “Employers and workers can also contact the ACAS helpline for free and confidential advice.”

In today’s judgment the UK Employment Appeal Tribunal decided that holiday pay should reflect non-guaranteed overtime. John Cridland, CBI Director-General, said: “This is a real blow to UK businesses now facing the prospect of punitive costs potentially running into billions of pounds – and not all will survive, which could mean significant job losses. These cases are creating major uncertainty for businesses and impacting on investment and resourcing decisions. This judgment must be challenged. We need the UK Government to step up its defence of the current UK law, and use its powers to limit any retrospective liability that firms may face.”

Also commenting on the ruling TUC General Secretary Frances O'Grady said: “Failing to count overtime when calculating holiday pay is quite simply wrong. This ruling marks a victory for people who work long and hard to make a living, and who deserve to be properly paid when they take their well-earned leave. “Scaremongering about the possible impact of this ruling is irresponsible. British business is far more robust than some of its spokespeople would admit. It's worth remembering that in 1999 a change in the law meant that six million people gained more holiday entitlements, and businesses easily absorbed the increase and employment continued to rise."

Margot Parker MEP, UKIP's Small Business spokesman: “Today’s ruling from the Employment Tribunal is simply outrageous. Thousands of companies could be hit with retrospective claims, some dating as far back as 1998, that would cripple them and put them out of business. It cannot be right that businesses that acted in good faith could now be subject to massive payouts that may well bankrupt them, putting many people out of work. The European Working Time Directive is a wolf in sheep’s clothing for thousands of businesses up and down the country. It may look like a good thing for workers, but the reality is that it hits the small and medium sized enterprises that are the backbone of our economy, hard. The gold plating of it by our institutions is abominable."

Vince Cable to clarify and enhance workforce rights

A major review aimed at shoring up workers’ rights has been launched by Liberal Democrat Business Secretary Vince Cable. The aim is to make sure people understand their employment rights, as well as ensuring bosses know what their staff are entitled to. The review could help strengthen the employment status of up to one million British workers.

Vince Cable said: “Workers should not be finding out that they are not protected by law once they get to employment tribunal. Businesses should feel more confident knowing what type of contracts to hire staff on. As the economy recovers, it is right to give a silent minority of workers, who currently have fewer employment rights, the security enjoyed by a majority of employees. The Liberal Democrats will ensure we will get a system that is fair, simple and transparent.”

The news follows a recent review into zero hours contracts, which revealed some workers could be missing out on basic rights such as maternity leave or unfair dismissal. Vince Cable said in many cases workers are not aware of their employment status and what rights they are entitled.

Employers may also run the risk of a legal challenge because they may be unaware of rights they should give to their staff. Business department officials expect to present interim findings by the end of the year, and hope to submit recommendations for next steps to ministers by March.

Vince Cable has also announced a ‘one stop shop’ for workers’ rights enforcement, which will go forward to the Lib Dem manifesto in 2015. The new Workers’ Rights Agency, which would streamline the work of four existing bodies, will revamp efforts to enforce employment law and tackle the exploitation of workers.

It will include the national minimum wage enforcement section at HM Revenue and Customs, the working time directive section at the Health and Safety Executive, the Employment Agency Standards inspectorate, and the Gangmaster Licensing Authority.

Vince Cable added: “A joined up enforcement approach will ensure the minority of unscrupulous employers who break the law do not get away with undercutting other employers who play by the rules.”

Commenting Katja Hall, CBI deputy director-general said: "Business wants to see that we maintain a flexible labour market that delivers for both employees and firms because it creates new jobs and helps people get into work. Companies and workers value the range of flexible employment practices on offer and we should seek to preserve this, but both parties should be clear about their rights under the terms of contract and any examples of poor practice should rightly be rooted out."

Vince Cable to bolster apprenticeship pay

Plans to boost pay for thousands of apprentices have been unveiled by Liberal Democrat business secretary Vince Cable. A proposal to create a single national minimum wage for 16 to 17-year-olds in work and first year of apprentices will be presented to the Low Pay Commission (LPC). It would mean around 31,000 apprentices in the first year of their programme will benefit from a pay rise of more than £1 an hour. Vince Cable hoped the move would encourage more young people to take up an apprenticeship.

He is expected to say: "The National Minimum Wage has successfully protected the incomes and jobs of the lowest paid workers in the UK. This year it will see the first above inflation rise in the minimum wage since the recession. Thanks to the Lib Dems, apprenticeships are helping to create a stronger economy and opportunities for young people. I want the minimum pay for apprentices boosted by £1 an hour."

The proposal to the LPC would see wages will rise from £2.73 to £3.79 an hour on current rates. This will also help employers by simplifying pay structures. In June 2014, Vince asked the LPC to consider whether the structure of the apprentice rate could be simplified to ensure apprentices get paid the right wage. The LPC will make their recommendations, alongside the 2015 national minimum wage rates, in the Spring of 2015. Government will then decide on any changes to the structure, based on the LPC’s recommendations.

Liam Byrne MP, Labour's Shadow Minister for Universities, Science and Skills, responding to Vince Cable's announcement, said: "You can't trust a word the Lib Dems say. Under this Government the number of young people taking apprenticeships is falling while more than a quarter of apprentices are not receiving the apprentice minimum wage. Ministers need to get a grip and ensure the rules are properly enforced. The Tories and Lib Dems have failed to back Labour's plans for a more ambitious target for the National Minimum Wage and for better enforcement by giving local authorities new powers and introducing heftier penalties for employers who break the rules."

Commenting on a rise in the National Minimum Wage Rate for apprentices Katja Hall, CBI deputy director-general said: "Apprenticeships are a vital route for young people to get a step on the career ladder and are part of the answer to solving the UK's skills crisis. Yet too few apprenticeships at the moment go to the young and relatively unskilled. Companies already pay their share into training, so raising the cost of taking these young people on would be unwise and put off many smaller firms from getting involved."

Also responding to Vince Cable's announcement the TUC General Secretary Frances O’Grady said: "This is the right thing to do for both young workers and the economy and will help encourage more young people into apprenticeships. We also need to crack down on those employers responsible for illegally underpaying more than a quarter of apprentices and must raise the quality of apprenticeships to make them higher skilled. The TUC has been calling for a review of bogus self-employment and the abuse of employment contracts for many years. This review is welcome, if long overdue, but it will need teeth to crack down on the widespread abuse of many vulnerable workers and achieve real reform."

Vince Cable visits Emmerdale set to launch apprenticeship campaign

Vince Cable has today visited companies across Leeds to celebrate the launch of the Government’s new campaign calling on young people to “Get In, Go Far” by choosing an apprenticeship. The campaign, which is being supported by top employers, coincides with the introduction of 40 new employer-designed apprenticeships in sectors including engineering, hospitality and the legal profession. To celebrate the launch of the campaign, Business Secretary Vince Cable visited ITV studios in Leeds to meet apprentices gaining hands-on experience while working towards a nationally recognised qualification. There he was given a behind these scenes tour of the set of ITV’s long running soap Emmerdale to see how apprentices bring one of the nations most watched shows to life.

Speaking at the set of Emmerdale, Vince Cable said: "For too long there has been a divide between university and vocational education which has been damaging for both employers and young people. Placing university degrees and apprenticeships on an equal footing will help to break down barriers and better meet the needs of business. Since I became Secretary of State we have expanded apprenticeship numbers greatly, particularly higher apprenticeships. The reforms to apprenticeships enable employers to design and deliver apprenticeships that meet their needs, giving young people valuable qualifications and helping them to build successful careers from television production to advanced manufacturing.”

Later on today, Vince Cable will move on to visit Siemens Mechanical Drives and Arla Foods before rounding off the trip with a visit to translating company thebigword’s HQ in Leeds. At Siemens Mechanical Drives the Business Secretary was able to meet some of the apprentices working in the company’s Leeds factory. Siemens currently employs 200 apprentices on its highly successful scheme and is in the process of creating at least 150 more places this year. The company has recently been working with Kodak, Grant Thornton and Leeds City Council to submit plans to the Government for Leeds’ first university technical college that will specialise in advanced manufacturing and engineering.

Vince Cable added: "Engineering is central to Britain’s economic future and as the economy recovers the need for more skilled engineers across all the regions of the UK will continue to grow. It is therefore extremely welcome that such an important business hub as Leeds is playing a part. This university technical college will not only provide young people with a structured and supported technical education, but with the support of companies such as Kodak, Siemens and Unilever it will play a pivotal role in furnishing this great city with its next generation of engineers. This is good news for Leeds and great news for the wider economy.”

It was then the turn of apprentices working at global dairy company and cooperative Arla Foods to show off their hard work and give the Business Secretary a tour of their dairy laboratories. Home to some of the UK’s leading dairy brands, including Cravendale, Anchor and Lurpak, Arla Foods is one of a number of dairy companies who work with the National Skills Academy for Food and Drink to deliver the Eden Engineering Apprenticeship scheme. The scheme brings together employers from across the industry to provide an advanced apprenticeship for maintenance technicians and engineers, helping to produce world class staff for tomorrow’s dairy industry.

The final stop on the tour was to the Leeds headquarters of the big word, one of the world’s top-20 translating and interpreting company that has 11 global offices and nearly 500 employees working with more than 8,000 linguists worldwide. More than 120 apprentices have been through thebigword’s programme since its launch in 2011 with almost 65 per cent moving in to full-time jobs with the company. Last year, thebigword won ‘Large Employer of the Year’ in the Leeds City Council Apprenticeship Awards and was named a ‘Top 100 Apprentice Employer’ nationally.

The Government’s new apprenticeship campaign showcases the variety and quality on offer. The campaign, with the strapline ‘Get In, Go Far’ features real apprentices in varied sectors giving their own thoughts on their experiences. The apprentices, shown in the adverts taking selfies in their places of work, will appear on TV, posters, digital channels and in print media. The new apprenticeships which have been launched are from a broad range of industries and include roles such as, a land-based service engineer, senior culinary chef, solicitor, journalist and a dental practise manager. Throughout the process over 200 employers and training providers were involved in designing the 40 new apprenticeship standards that have been approved.

This forms part of the apprenticeship trailblazer project which was launched in October 2013, the second phase of which was launched during National Apprenticeship Week in March. It aims to ensure every apprentice in England is enrolled on a scheme which has been designed and approved by employers by 2016/17. Apprenticeships are already proving to be a successful and viable option as opposed to going to university. Since 2010, there have been over 1.8 million apprentices in England and this number continues to grow. Research has also shown that 86 per cent of those who did an apprenticeship stayed in work afterwards, 67 per cent with the same employer. A survey with employers also found that 96 per cent of businesses which have taken on an apprentice believe their company has benefitted.

For more information on apprenticeships and the apprentices that are being featured in the campaign, visit www.apprenticeships.gov.uk

Lib Dems promise law to 'lift the lid' on gender pay gap

Large companies will be legally required to publish the difference between what they pay men and women under manifesto plans set out by the Liberal Democrats today. The plan would see companies employing over 250 people required by law to publish the average pay of their male and female employees - creating pressure from staff and customers to account for and close any gap that exists.

The plan was announced by Liberal Democrat Leader and Deputy Prime Minister Nick Clegg, Minister for Women and Equalities Jo Swinson and the Business Secretary, Vince Cable.

The Liberal Democrats will put into force Section 78 of the Equalities Act, which was drafted but not implemented by the previous Labour Government. The Coalition Government has encouraged leading employers to publish pay gap information on a voluntary basis but the Liberal Democrats believe that it is time to go further. The Liberal Democrats are the first major party to commit to enforcing gender pay transparency by law.

Commenting, Nick Clegg said: "Forty years after the Equal Pay Act was passed it is utterly unacceptable that women are not being equally rewarded in the workplace - with women paid, on average, 20% less than men. Real equality means fair pay. It's time to accept that the voluntary approach does not go far or fast enough. We need to lift the lid on what big companies pay the men and women they employ, with that information there for every employee and customer to see."

Jo Swinson added: "The Liberal Democrats have fought for shared parental leave, extra childcare, a new right to request flexible working, and we are determined to tackle the issue of gender pay. If women in the workplace are to have the same opportunities and choices as men, they must be properly rewarded for their talents and skills - it's as simple as that."

Vince Cable commenting said: "We're consulting with business to make sure we get the detail right, but ultimately this is a good step for our companies. We've already seen some of our biggest firms lead the way on publishing pay gap information. They know that their staff will appreciate real openness about the way men and women are paid and real effort to close any gap that exists."

Cable announces £100m to support domestic supply chains and bring manufacturing back to the UK

The Business Secretary, Vince Cable, has announced that companies can now bid for a share of £100 million from a Government scheme to help them strengthen their domestic supply chains and help bring manufacturing back to the UK. The funding will provide research and development support, skills training, investment capital and encourage major new suppliers to ‘reshore’ in the UK. It comes from the Advanced Manufacturing Supply Chain Initiative (AMSCI).

Five previous rounds of AMSCI funding have secured nearly half a billion pounds of public-private investment for 44 projects in the UK.

Business Secretary, Vince Cable said: “A strong manufacturing sector is vital to a balanced economic recovery, and I want to ensure that Britain’s supply chains are up to the task of supporting the sector in the long term. Our industrial strategy, which has given business the confidence to invest, is paying dividends in the reshoring we have seen so far. We will continue to support businesses to secure more highly skilled jobs and a stronger economy.”

Previous recipients of AMSCI funding have included technology for increasing the scale of 3D printing of metals; and reshoring the manufacture of cats’ eyes from overseas to the UK. It has also included the creation of a ‘National Aerospace Technology Exploitation Programme’ led by the Aerospace Growth Partnership to address skills shortages and improve R&D collaboration in the aerospace sector. The £35 million project aims to create nearly 5,000 jobs in the supply chain.

Terry Scuoler, Chief Executive at EEF, the manufacturers’ organisation, said:  “This is another welcome boost for British manufacturing, which will have a positive impact on he wider economy. Our own research shows that in the last three years, one in six companies have re-shored production back to the UK with many turning to a UK-based supply chain for parts and components. High value manufacturing creates jobs and wealth here so I’m delighted to see the Government getting behind it.”

The manufacturing sector supports two and a half million jobs and contributes almost £140 billion a year to the UK.

PM unveils new £10m business support scheme

Prime Minister David Cameron has unveiled a new £10m business support scheme to help flood-affected businesses get back on their feet. As part of the Government’s ongoing work to deal with the floods, the Prime Minister has today set out further support for businesses in areas affected by flooding. Building on last week’s package of support for businesses and households, the Prime Minister announced:

• A new Business Support Scheme worth up to £10million to provide hardship funding for SME businesses in areas affected by the floods. Both businesses that have been flooded, and businesses that are in affected areas and have suffered significant loss of trade, will be able to apply for support. Eligible businesses will be able to claim for funding for things like immediate clean-up costs, materials, and exceptional costs to help them continue trading.
• Extra time for businesses to file accounts without any penalties. If any affected company is unable to file accounts or other documents on time as a direct result of the floods, Companies House will agree an extension and not collect the penalties which apply for late filings.
• A Government Business Support Helpline is providing comprehensive advice and support to businesses affected by floods. The Helpline will offer a free one hour call with a dedicated Business Support Adviser to help businesses get back on their feet. The helpline number is 0300 456 3565 and can take calls from flood affected businesses now.

Alongside this Government action, the Government also welcomes the initiative from Enterprise Nation to bring together big business offers of assistance to small firms affected by the floods. These offer of assistance include:

• Regus, the global workspace provider with 220 business centres across the UK, is coming to the aid of businesses by offering free workspace to workers affected by the floods. Those who cannot work in their normal location – whether that’s an office or their home – will be given free access to the business lounge within any Regus centre, providing professional workspace, wifi and complementary refreshments.
• Citrix has pledged to support small businesses affected by the floods by letting them use GoToMeeting free on a trial basis for up to 3 months (90 days) for quick and easy online meetings with employees and customers. GoToMeeting is quick to install and allows you to connect face-to-face and work with people important to your business via a mobile, tablet or PC wherever you or they happen to be.

Prime Minister David Cameron said: “The Government is taking action across the board to deal with the clear-up and help hard-working people affected by the floods. Today I am announcing further support for businesses hit to help them get back on their feet. Dealing with these floods will be a long haul, requiring a stepped-up national effort with the whole country pulling together. We will continue to help the people who need help and protect the communities that need protecting.”

Business Secretary Vince Cable said: "It is vital that small businesses affected by the flooding get assistance as quickly as possible. We know the insurance companies are working to process claims as quickly as possible and we will inform local authorities of their allocations from the Business Support Scheme on Thursday to assist businesses with clean-up costs or help them to continue trading. I encourage all businesses affected by flooding to get in touch with their local authority or contact the Business Support Helpline, where our team of advisers will be able to direct people to a wide range of practical help and advice."

Minimum wage: £20,000. fines for rogue employers

Rogue employers who do not pay their workers the National Minimum Wage (NMW) will face an increased penalty of up to £20,000 as part of Government’s crackdown on employers who break the law. Currently employers that break NMW law must pay the unpaid wages plus a financial penalty calculated as 50 per cent of the total underpayment for all workers found to be underpaid. The maximum penalty an employer can face is £5,000.

Following an announcement by the Prime Minister before Christmas, the Government will increase the financial penalty percentage from 50 per cent to 100 per cent of the unpaid wages owed to workers. The maximum penalty will increase from £5,000 to £20,000. Regulations introducing these new limits are subject to Parliamentary approval and are expected to be in force in February 2014. The Government also wants to go further and will bring in legislation at the earliest opportunity so that the maximum £20,000 penalty can apply to each underpaid worker.

Business Secretary Vince Cable said:“Anyone entitled to the National Minimum Wage should receive it. Paying anything less than this is unacceptable, illegal and will be punished by law. So we are bringing in tougher financial penalties to crackdown on those who do not play by the rules. The message is clear – if you break the law, you will face action.

“As well as higher penalties, we have made it easier to name and shame employers who fail to pay their workers what they are due. We are working with HM Revenue and Customs to investigate non-compliance and facilitate prosecutions in the most serious of cases. We also make sure that every complaint made to the free and confidential Pay and Work Rights Helpline is looked at. The National Minimum Wage plays an important role in supporting low-paid workers whilst making sure they can still find work. Enforcing this is a key to fairness in our workforce.”

The intention is to penalise those with the highest levels of arrears. Employers who are found to have made underpayments of more than £20,000 to any worker after the new laws come into force will not only pay the new higher level of penalties but will face this penalty for each such worker. Where the underpayment for any individual worker or group of workers exceeds £20,000 the penalty will be restricted to £20,000 in relation to that worker or group.

The Unite Union responded to the proposals by business secretary Vince Cable to quadruple the fines on employers to £20,000 would make little difference and left exploited workers valued less than the penalty for touts selling dodgy football shirts. Unite assistant general secretary Steve Turner said: “The problem of low pay is hitting millions of working people struggling to make ends meet. However, raising the maximum fine to £20,000 is simply not enough of a deterrent for employers who are making big profits by exploiting workers.

“Enforcement of the NMW is a shambles and average fines are a disgrace. This needs to be addressed and an active policy of ‘naming and shaming’ bad bosses should be introduced, so their local communities know the hard, ugly truth. This con trick needs to be exposed - the fine is fixed at 50 per cent of the unpaid wages - it is not a fixed £20,000. Further, the £20,000 per employee proposal is only for each employee underpaid by £20,000 - to put it in perspective you will have had to be unpaid (no wages) and working 40 hours a week for over 18 months for this to kick in.

“It’s a joke, leaving workers valued less than a counterfeit football shirt and insulting to hardworking people struggling to get by. We also have a situation where HMRC, which is meant to enforce the NMW, has suffered ongoing cuts under the coalition leaving it unable to tackle the billions in tax avoidance, let alone non-payment of the NMW.”

Unite has repeatedly called for the NMW, currently £6.31 an hour for adults, to be increased by £1.50 an hour, so that purchasing power is put into the pockets of the UK’s low paid.

Cable: Government "wont achieve" immigration target

The Business Secretary Dr Vince Cable has told the BBC's Political Editor Nick Robinson that the government ‘certainly won’t achieve’ its target of reducing UK net migration to below 100,000 before the next election in 2015. The comments were made in an interview to be broadcast as part of the upcoming BBC Two documentary ‘The Truth About Immigration’ which airs at 21:30 on BBC Two on Tuesday 7th January.

A transcript is below.

Nick Robinson: "So that target, is it in any sense achievable?"

Vince Cable: "In our view, certainly the Liberal Democrats view, it’s not sensible to have an arbitrary cap because most of the things under it can’t be controlled. So it involves British people emigrating - you can't control that. It involves free movement within the European Union - in and out. It involves British people coming back from overseas, who are not immigrants but who are counted in the numbers. So setting an arbitrary cap is not helpful, it almost certainly won’t achieve the below 100,000 level the Conservatives have set anyway, so let’s be practical about it."

Nick Robinson: "The government’s target is a bit of a nonsense, then, isn’t it?"

Vince Cable: "I wouldn’t use the words nonsense, but the idea it should come down to 100,000 is something the Liberal Democrats have never signed up to because we simply regard it as impractical."

Shadow Immigration Minister, David Hanson, responding to Vince Cable's comments on immigration, said: "Vince Cable is right to say that the Prime Minister's net migration measure is actually rising and not falling to the tens of thousands as he promised. He could also point out that the Home Office's obsession with the net migration target ignores illegal immigration and is actually pushing migration into less controlled routes. This gap between the Government's rhetoric and reality on immigration is continuing to undermine public confidence.

"As Business Secretary Vince Cable could also be making the changes we have called for and need now. He could be working on improving enforcement of the minimum wage, tightening recruitment agencies recruiting solely from abroad, stopping them paying less and extending gangmaster legislation to new areas - all of which are issues of basic fairness but which would also make sure that local workers are not excluded from job opportunities and that migrants are not unfairly exploited in a race to the bottom. However he and this Government have so far refused to act on any of these areas in any meaningful way."

Coalition publishes review into RBS and the case for a Bad Bank

The government is today publishing its review entitled, "RBS and the case for a bad bank: the Government's Review", which the Chancellor announced in June 2013. RBS has also published its latest set of results today, in which the bank sets out a new direction that will lead it to being a boost to the British economy instead of a burden.

RBS has announced that a bad bank will be created to separate and wind down RBS's poorly-performing and high-risk assets that are a legacy of what went wrong in its past, enabling RBS to look to the future. But instead of an 'external' bad bank that would require more taxpayers' support, this will be an 'internal' bad bank funded by RBS itself. RBS has announced a renewed focus on its core British business, supporting British families and companies, withan ambitious goal to become the best small business bank in Britain from which, in time, the British taxpayer can start getting its money back.

As a result of the measures announced today, the Bank of England has confirmed that the taxpayers' contingent exposure to the banking system has been reduced by a further £8bn with the removal of the Contingent Capital Facility one year early. When the Dividend Access Share (DAS) is retired - on which the Treasury and RBS are now in advanced negotiations with the European Commission - this should also make RBS shares more attractive to external investors and bring forward the day when taxpayers can get their money back.

The Chancellor of the Exchequer, George Osborne, said: "Today RBS sets out a new direction - a new direction that will lead it to being a boost tothe British economy instead of a burden. This is part of our economic plan for sustaining the economic recovery and creating a banking system that works for Britain. Under this new direction RBS will deal decisively with the problems of the past by separating out the good from the bad, and putting the bad loans in a bad bank. Our independent analysis shows that the bad bank should be an internal one, funded by RBS, rather than an external one funded by the taxpayer.

"RBS will focus on its core British business, supporting British families and companies. It will sell off more of its overseas operations and go on shrinking its investment bank, so it has more capital to support lending to the British economy. RBS is also committing today to the ambitious goal of becoming the best small business bank in Britain. The new direction for RBS is supported wholeheartedly by the management and Board of RBS, the Bank of England, the Government and UK Financial Investments (UKFI). The authorities look forward to supporting Ross McEwan and his team in implementing this plan. It means less exposure for the British taxpayer and more help for the British economy. That is why it's good for Britain."

Secretary of State for Business, Vince Cable, said: "I welcome the announcement today that RBS will be creating a new internal bad bank & selling its US bank. This will enable it to focus on business lending in the UK. It is clear that for many years RBS has handicapped our recovery by failing to provide the credit that businesses need. As Sir Andrew Large demonstrates, its SME lending practices are badly designed for supporting small businesses. After these changes good British companies, especially SMEs, should expect a more positive approach."

The publication of RBS's plan and announcement of an internal bad bank today follows the conclusion of the government review, announced by the Chancellor in June, into the case for a so-called bad bank to hold and manage RBS's legacy assets. This review was conducted by the Treasury with expert help from Blackrock Solutions and Rothschild, whose key advice includes:

• [BlackRock Solutions] "RBS has demonstrated a strong track record for effectively managing down its non-core assets. We believe that that these skills combined with RBS plan for setting up an internal bad bank offers the most efficient route to resolve the identified assets."
• [Rothschild] "the new strategy announced by RBS should over time address many of the bank's challenges and areas of investor concern, which in the longer term should be reflected in an improved valuation and improve the prospects for an earlier return of RBS ownership to the private sector."

The Shadow Chancellor, Ed Balls, responding to announcements about the future of RBS, said: "After the firesales of Royal Mail and Northern Rock, we will scrutinise George Osborne's plans for the future of RBS very carefully. As we argued when, earlier this year, the Chancellor flirted with the idea of a quick sale of RBS to a political timetable, the taxpayer interest must come first. The tests for these changes at RBS are whether they see the taxpayer ultimately get its money back and whether they actually boost business lending and radically transform this bank to put an end to business as usual."

Continuing Mr Balls said: "On the banking system more widely, business and the public are right to be concerned that lending to business is still falling while the radical reforms we need are being watered down. For example, he is still refusing to implement the Parliamentary Commission's call for a backstop power that would allow for full separation of all the banks, not just one or two, if ring-fencing proves ineffective and does not deliver the cultural change we need."

Jaguar Land Rover announce 800 new jobs in Solihull

Jaguar Land Rover (JLR) has announced that it is creating 800 production jobs at its plant in Solihull. Commenting on the news the Business Secretary Vince Cable said:

"Jaguar Land Rover’s creation of 800 new jobs in Solihull to support new product development is a welcome boost for the UK automotive industry. The company’s investment of £2 billion this year and 8,000 new jobs over the last two years shows how JLR goes from strength to strength. With support from the Government’s Regional Growth Fund, it’s a clear demonstration of where the Government working in partnership with the private sector can make a real difference to the UK economy.”

Lorely Burt the Liberal Democrat MP for Solihull has also welcomed Jaguar Land Rover’s announcement of a 30% rise in global sales. This sales record is also twinned with the announcement of 800 new jobs for JLR’s Solihull site. Commenting on the news, Ms Burt said:

“The announcement of 800 new jobs in Solihull is fantastic news. In the last year we have seen a consistent decline in unemployment in Solihull and the creation of 800 new jobs will ensure that unemployment remains low. JLR has continued to grow and succeed in the last few years and it is for this reason that these impressive sales figures come as no surprise to me.  Last year JLR received funding from the Government’s Regional Growth Fund and it is figures such as these that show that Government initiatives are working to help rebalance the UK economy.”

Compared with 2011, Jaguar Land Rover delivered a record breaking global sales performance in 2012, selling almost 360,000 vehicles across 177 markets worldwide. Significantly Land Rover in the UK delivered a record performance, up by 24%.

Comment piece: The party conference season

By Louise Illman

For the last few weeks it has been a busy time in the politics calendar. Conference season has been in full swing, and it has been a time filled with surprises, some predictabilities and lots of ridiculous things going on. Today, around a week on, I'm going to be discussing all 3 of the major parties conferences, with a sprinkling of the other parties where possible too. 

Starting off with the first main one in the calendar, the Liberal Democrats conference. I could discuss all the policies discussed and debated during this one, and I shall in a bit. However for now the thing I cannot miss is Clegg's apology. Is there any better way to start off a conference than with your leader against a beige wall apologising for making pledges he cannot keep? Probably, however that's not the point- in the end it would seem everything worked out well anyway- The Poke did a remix which Nick Clegg and co fell over- unfortunately they don't seem to get that these sorts of things are not meant to be endorsed by Clegg, they're meant to be a way of rebelling against the power, and by Clegg saying yes (even in the name of charity) it did lessen the want for it on your Itunes. (Other media players are available)

The ideas, policies, and speeches at that conference were quite forgettable really. Maybe that’s just me, but certainly three weeks later I have not got much to use against them. Obviously, the Mansion tax is one of their more memorable policies, and in fact one of the very few I agree with can see the reasons for. As per usual this is the policy which George Osborne decided against almost immediately; even the Lord’s Reform was toyed over for a longer period of time than the mansion tax, which was terminated as an idea because you could even type one ironic tweet on the Lib Dems failing to get yet another idea through. 

The speeches from the Lib Dem conference meanwhile were slightly more memorable. Saying that, Danny Alexander, Vince Cable and Nick Clegg’s are the only three I can cite now and even that is only to call them upon their pathetic jokes. If I was to host one of those late night E4 countdown shows, I would award Clegg the gong for worst joke. Admittedly, I cannot joke with ease either, but given a long period of time to write something even I can conjure something more than” “To make blue go green you have to add yellow “-Is that a joke? The people attending the conference seemed to think it was, though really it’s just a basic statement of fact- anyone could do that surely? Close runners up are Cable’s pleb gag and Danny Alexander entire speech which I would include but it would take me far too long. When Danny wasn’t attempting jokes he did make a point on tax avoiders, however couldn’t help but make that humorous too by adding a booming Big Brother style ‘WE’RE COMING TO GET YOU’ to proceedings. 

Clegg’S speech (apart from the few jokes just mentioned) meanwhile was more serious, and had some good points- he didn’t close off any coalition opportunities, and spoke clearly and with a good strategy. On the other hand though it was ultimately forgettable and didn’t really provide a different view. For someone such as me who feels like Clegg has broken so many promises now that he has no credibility, it didn’t do anything to get me back on side.

The Labour Conference was one I was definitely looking forward to more than the Liberal Democrats one. As someone whose political views tend to slide towards Labour, however would like more from them in policies and image it was always going to be an interesting and revealing affair which I looked forward to. It didn't disappoint, in the end, though with quite a few hiccups along the way. The beginning wasn't too great it must be said; it's hard to explain now but at the time it did feel a bit of a slow starter, and received a more negative reaction than expected. The overall mood stayed cheerful however, and in the end it did catch up to speed and impress me.  

I suppose you could say optimism is a theme running throughout all conferences; in other years (by which I mean last year, seeing as two years ago I was more interested in watching four adult judges fight like children on X Factor than lots of adult politicians fighting in their packs) I've noticed much more doom and gloom in the form of glum politicians standing my plant pots on the news and lots of awkward silences, however this time everyone seemed to be much cheerier, even Nick Clegg who is normally in a permanent state of drab and dreariness was caught smiling a few times- I thought my laptop screen would break, but it actually didn’t- that was the biggest shock of all for me.

Moving back to Labour’s Conference, the main attraction of course was Ed Miliband and his speech. Ed may not be the most popular leader Labour have ever had, and it is slightly disheartening that David Miliband is still regularly being voted as the better leader two years later, however I personally am willing to give Ed a chance and actually think he’s doing pretty well at the moment; I do acknowledge that’s an unpopular thing to admit though.

Notably for his speech, Ed performed it without any notes, which he used as a way to showcase how much he cared about the words he spoke. I personally thought his speech was great in general anyway; maybe I'm biased seeing as I’ve always had a soft spot for Miliband and spend my day’s bewildered by people calling him out on how pathetic he is as leader, but I thought he really reached into the heart and spoke lots of truth. His phrase of choice this time is ‘One Nation’ which some have compared to the infamous ‘We’re All in This Together’ line which has been trotted out again and again, but seems to have been finally retired lately. I personally don’t think One Nation is a bad line; it’s certainly not as cheesy as we’re all in this together, and has no relations with a dramatic American movie for children. Whether it delivers or not depends on if it is used against Labour in future, only time will tell.

Of course, there's always room for improvement in Ed’s speech; some more coverage on how he and Ed Balls will tackle the deficit would have been perfect, however we still have a long time to go yet before election time and as long as either Ed gives us a solid plan soon I think they could be onto a winner. Other improvements could include discussing green issues more; something largely ignored by all three major parties really, plus there was one bit where Ed said that every millionaire will receive a tax cut, when it was more specific than that if memory serves me correct. All in all though it was strong, and hopefully has done some good to Miliband’s image, and not just to the betting odds.

Two people whose speeches I did really enjoy were Harriet Harman and Yvette Cooper’s. I have no qualms with either of their speeches except to say that they raised lots of good points and were clear in direction.

Apart from the speeches, what else went on during the Labour Conference? A school girl was heckled in a moment which I have no wishes to defend; whoever did try and spoil her moments with a thoughtless comment deserved to be berated for it, and was- it would be wrong to assume all Labour members look down on people from more privileged backgrounds or from private schools because this is simply not the case- the person who sent out the heckle was dealt with accordingly from what I’ve read about it. Altogether it was definitely a good conference for me to watch, maybe not the most exciting but certainly very interesting throughout.

The final of the main parties' conferences is the Conservative Conference. Admittedly I'm not a supporter of the Conservatives, however on the whole it wasn't a total disaster. The two speeches I remember clearest from this conference are George Osborne and David Cameron’s. Starting with Osborne, his plan to let workers trade rights for shares is just ridiculously flawed, and to be honest his whole speech to me read like a manual on how to cause Twitter to explode with rage.

Cameron’s was an improvement; for his audience I’m pretty sure it will have been very warmly received, and whilst it didn’t work for me, just like I suspect Miliband’s didn’t for others, I can acknowledge his message was loud and confident. My main problem with it however has got to be the content. It’s all very well being professional and clear, but if I disagree with what you’re actually preaching chances are you can’t win my support, and nor would want to. For example, Cameron failed to mention the police even once, and didn’t even attempt to justify the NHS reforms. 

Whilst I’m on the subject of speeches, I just have to discuss Boris Johnson. Certainly one of the most recognizable political figures, his speech was always going to be a bit of light relief, even if it is surrounded with political meaning. I have to be honest and admit not to be a fan of Boris; his bouffant can be described as ‘quite nice’ on a good day, and he does have some good one liners but I can’t help but think what lies underneath is a very heavily right wing Conservative with horrible views, hiding under this ‘mask’ to get people’s support.  His speech was more cheerful than Cameron’s and (according to my notes anyway) largely involved him shoehorning dancing to the woeful (yet catchy) Gangnam Style in, though I suspect he used it more so as a perfect opportunity to lie the Cameron VS Johnson rumours to bed than because he actually liked the song. He also at one stage got a One Direction reference in, to do with a squirrel attacking one of them in one way. I do admit defeat on that one; I suspect he knows more than One Direction than me, though I’m quite happy in my One Direction ignorance filled world for now.

In more general conference on-goings, Andrew Mitchell did not attend in the end because of the controversy over his alleged Pleb remarks which he may or may not have lied about. This story has been around a while now and whilst not particularly relevant to the conference has still been frequently mentioned throughout. Grant Shapps meanwhile attended countless events at the conference in his new role as Chairman and has arguably been the biggest rise to fame in the last month or so; it’s quite strange to think just over a month ago I had little interest in who he is, and now I have a whole virtual database on all the mistakes he’s done at some point so far. (Well, him or Michael Green, it does depend)

I don't wish to totally bypass the other conferences but in SNPs case I have to seeing as at the time of writing it has not occurred yet. I only really remember vague details on the UKIP and Green conferences now, however I shall list them for your benefit. One thing I do recall about the UKIP conference is Nigel Farage’s speech. I’m not a fan of Nigel or the UKIP in general, however his speech was fascinating in the fact it talked about a possible deal that UKIP could go in with the Conservatives. It was played down in the end, however still does seem to be an outsider possibility. The Green Party meanwhile introduced their new promising leader, Natalie Bennett, who in turn used her speech to accuse Labour of being a failing alternative. So far I am quite a fan of Natalie despite her disapproval of Labour, whether that will change in future weeks I am not sure but at the current point in time I think she seems to be promising something unique. That is certainly unusual for me- I rarely wish well on politicians, but I do really hope she sparkles more in the coming months.

To conclude, has conference season changed much? Probably not. I very much doubt it will change many people's minds on which party to support, nor will it affect the polls too much in the long run once the initial ups and downs have been steadied. However the conference's do work as a way for parties to gather together, discus ideas, meet some future friends and for politicians reassure their members they haven't totally gone cuckoo over their extravagant holidays in places like France, Spain, Italy, Cornwall, wherever else. I certainly enjoyed them all, even the parties I don’t support are still intriguing to watch to see if they mess up or do something ridiculous. (HINT: they almost always do) I hope you’ve enjoyed this and it covered all the basics without going on too much; it has been a pleasure to write.

Harman: Labour is now in with a "fighing chance"

Harriet Harman closing Labour's autumn conference in Manchester

Labour is now in with a "fighting chance" of winning the next election after Ed Miliband's conference speech fired the "starting gun" of the campaign, Harriet Harman claimed. Closing the five-day conference in Manchester, Ms Harman said it had been a "special" game-changing gathering that had emboldened the party.But she warned there must be "no no-go areas" when it comes to campaigning in the run-up to the expected 2015 vote and called on members to work as a team to fight the Tories and Liberal Democrats.

Harriet Harman who has become Shadow Culture Secretary since the last Labour party conference said: "In my new role as Shadow Culture Secretary, I'm always asked what I'm reading. And just the other week, I had an awkward moment when a journalist asked me if I'd read "that" book. Women here will know the one...The one about a sado-masochistic relationship - you know...…with a dominant superior controlling a naive submissive... And I said: "don't be silly - of course I've read the coalition agreement."

Turning from the Coalition to the Labour party: "This week has been special, this week the game has changed. We know we have big challenges ahead but we leave Manchester emboldened, enthused, with a strong sense of purpose. We have grown in confidence, we have grown in self-belief. This country needs a government of and for all its people, not a coalition that plays divide and rule. This country needs a One Nation Labour Party and a One Nation Labour government." 

She added: "It's been a great week for the Labour Party and it's been a great week for Ed Miliband. Ed, we all know you love baseball, of course, you're a Red Sox fan. So, can I just say to you...You knocked the ball right out of the park".

Ms Harman also rounded on the Liberal Democrats for backing tax cuts for millionaires and accused Deputy Prime Minister Nick Clegg of propping up a "miserable Tory government". The deputy leader also launched a direct attack on Business Secretary "saint" Vince Cable after speculation that Labour would find it easier to work with the left-leaning cabinet minister in a coalition after the next election. 

She said: "People say you get the politicians you deserve but no-one deserves Nick Clegg. Calamity Clegg who has propped up this miserable Tory Government every step of the way. It's no wonder Vince Cable is on manoeuvres." But added "don't bother to text Ed Vince - he's changed his number"

Bank of Vince will require EU approval to proceed

In his keynote speech at the Liberal Democrat conference, in Brighton, the Business Secretary Vince Cable announced a new British Business Bank to boost lending to companies.

Mr Cable told Lib Dem delegates that: “For decades British industry has lacked the sort of diverse, long-term finance that is quite normal elsewhere” he said. “I am working with the chancellor to develop a state-backed institution that will combine up to a billion pounds of new government capital with a larger private sector contribution. This will then apply further leverage through guarantees to support up to £10bn of finance to SMEs and mid-sized business a significant portion of all the lending available.

To that end, I believe we need an industrial strategy a positive and ambitious vision, built around long-term investment and innovation, in skills and science. We are so good at so many things in this country but for too long the mirage of growth based on property speculation and financial gambling has hidden the harder virtues of making things productively. We must get behind successful British-based firms in vehicles, aerospace, life sciences and creative industries and our world-class scientists and universities. There are some common threads: understanding that markets fail and that governments can sensibly intervene and support enterprise; and a will to fight the British curse of short-termism both in the corporate world and government.”

However, Shadow Business Secretary Chuka Umunna responded to Vince Cable's announcement by saying that: "Labour has led calls for the creation of a British Investment Bank, but it is far from clear that the business bank Vince Cable envisages is the kind of institution that will get credit to successful firms who can’t currently access the finance they need.Vince Cable will not be able to set up a business bank without the unequivocal backing of George Osborne, and already the Treasury is briefing that this bank is a non-starter. 

This is yet another Government policy thrown into uncertainty by bickering in Government before it has even got off the ground. A major problem with the Government’s previous failed schemes to get lending going to businesses, including Project Merlin and credit easing, was that they relied on the banks themselves getting money out of the door, without any real safeguards to ensure this happened. It is far from clear that Vince Cable’s business bank will be immune from these shortcomings".

However aids close to Vince Cable have confirmed that approval from the European Union will be required to ensure that the state intervention rules aren't breached if the "business bank" is put into place. The bank wont be in place for around eighteen months, it it happens at all.

Nigel Farage: UKIP would "consider" election deal

UKIP Leader Nigel Farage delivering his keynote address to his party conference

UK Independence Party (UKIP) leader Nigel Farage said he is ready to do an electoral deal with the Conservatives in return for a promise "written in blood" of an in/out referendum on British membership of the European Union. Mr Farage denied reports that he was offering the Tories a deal under which Ukip would give Conservative candidates a clear run at the 2015 election in return for a referendum pledge, and promised members that he would not "sell short" the party. But in his keynote speech to the UKIP annual conference in Birmingham, he said it would be "silly" of UKIP not to consider any offers made by the Conservatives - or even Labour.

He predicted the Deputy Prime Minister Nick Clegg would be appointed a European Commissioner ahead of the election, leaving the Tories facing a possible coalition between Labour and the Liberal Democrats under a more left-wing leader like Vince Cable or Tim Farron, and in need of allies. 

Mr Farage told UKIP delegates: "If an opportunity came which meant that we could get this country closer to walking through a door marked `UK independence', if we had an opportunity to do something that was in our national interest, it would be silly not at least to consider it. "Is that going to happen? I don't know. As the general election approaches, people will be looking for supporters. It could be Labour - more likely, perhaps, it will be the Conservatives.

"But all this talk of a deal with the Conservatives hasn't come from me. It has come from members of the Conservative Party saying to David Cameron `Look, the Lib Dems are going to get rid of Clegg, because you are going to make him the European Commissioner in November 2014 to replace Baroness Ashton, and the Lib Dems under Vince Cable or Tim Farron will look to do a deal with Labour, and if Ukip are on 10% or more in the polls, you must look to do a deal with UKIP'. "That's where this whole supposed negotiation comes from."

Mr Farage insisted that UKIP will remain an independent and distinctive political party, fighting elections for police commissioners later this year, as well as parliamentary by-elections, county council elections and the 2014 European Parliament elections, when observers believe the eurosceptic party could finish second or even first. He said that he might not even be willing to accept the promise of a referendum, recalling that Mr Cameron offered a "cast-iron guarantee" of a national vote on the Lisbon Treaty before the 2010 election.

PA