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Employment, Universities and Skills and Housing

The development of the skills funding agency will give us a more flexible vehicle for delivering policies that we have already announced. Earlier in the autumn, in setting out the priorities for skills funding, I was able to say that we wanted greater flexibility for colleges to deliver courses below level 2. We will introduce further flexibilities in Train to Gain for those with older qualifications that need to be refreshed. While the Queen's Speech is essentially about structure, we are moving the skills funding system towards greater flexibility, which brings greater professional autonomy to college managers. That is a process that will develop over time, but I am sure that it will help to tackle the important problem that my hon. Friend identified and which we need to address. Our investment in higher education is not only a sound investment for the future but it enables universities and higher education institutions to offer immediate and practical help to businesses and individuals in the downturn. I commend to the House the document produced last week by Universities UK, GuildHE and the Higher Education Funding Council. It gave a business contact for every single higher education institution, and it set out the practical support available from our universities. The ProfitNet programme introduced by the university of Brighton brings together 500 companies across Sussex, and it has helped create supply chains, new processes and joint ventures. The business evolution service provided by the university of Staffordshire supports skills development and training at different levels, depending on employer requirements. Changes to the rate of VAT mean that universities, like other registered charities, will benefit financially for the 13 months in which the lower rate remains in force. Both Brighton and Staffordshire universities have said that the VAT cut will help them to step up their efforts on behalf of their local communities, and I very much welcome that.