CPTPP: Small and Medium-sized Enterprises
(Cleethorpes) (Con)
1. What assessment she has made of the potential impact of the
comprehensive and progressive agreement for trans-Pacific
partnership on small and medium-sized enterprises in the UK.
(900367)
The Secretary of State for Business and Trade ()
The CPTPP is one of the major benefits of Brexit. It has the
potential to deliver billions of pounds to our economy and
benefits small businesses across the UK. The deal delivers lower
tariffs, reduced red tape, and cutting-edge digital provisions
that directly support small businesses to trade more. It has an
SME chapter committing all countries to make the agreement
accessible for SMEs. I know that will be welcome news for my hon.
Friend ahead of Small Business Saturday.
I thank the Secretary of State for her answer. It is great news
that we are progressing membership of CPTPP and I welcome what
she says about SMEs. Many SMEs will be new to exporting and need
expert advice. Will she outline what particular plans there are
to help small businesses?
We will ensure that our support offer for SMEs will help firms
build their capability to import and export under our free trade
agreements. We have started preparing for CPTPP entering into
force. We will be producing written guidance on gov.uk to ensure
businesses are equipped with the knowledge they need to access
those opportunities. Specifically, our export support service,
network of international trade advisers, export academy, and
in-market support services will also help businesses to access
opportunities in CPTPP markets.
(Strangford) (DUP)
In my constituency of Strangford SMEs are an integral, core part
of creating jobs, putting wages into pockets, and ensuring that
people can progress and learn more trades. We want to be part of
the United Kingdom of Great Britain and Northern Ireland pushing
for the CPTPP. What can the Secretary of State do to help me and
my businesses in Strangford to be a part of that and to move
forward?
The hon. Gentleman will know that we had the Northern Ireland
investment summit a few months ago. We met lots of businesses and
investors who talked about how they want to take advantage of
these markets. In fact, we have had one of the first big
investors into a factory in Belfast. What I can do is help him
with some of the materials we have around the export academy and
the export support service, which he can hand out to businesses
in his constituency who want to find out more.
Mr Speaker
I call the shadow Minister.
(Slough) (Lab)
For UK businesses to benefit from agreements like the CPTPP, we
must have a clear plan to boost small business exports. Labour
has a plan to remove export barriers, with clear information and
support. That is in stark contrast to the Government’s approach,
which has been a catalogue of failures, including the recent
fiasco with the Government’s export website, which was so
deficient that firms were forced to seek essential information
from foreign Government websites. What immediate steps will the
Department take to provide some stability and ensure UK
businesses can excel in exporting?
I think the hon. Gentleman might be talking about something that
happened three years ago, which we fixed. He talks about the
export support service website. Businesses have actually been
praising it. [Interruption.]Businesses have been praising it;
they very much have been. We have an expert toolkit, which has
been developed by business and trade officials. What is
interesting is that all he says is that Labour has a plan to
remove export barriers. We have actually been removing export
barriers. Labour talks about a plan with no detail. No one is
taking it seriously at all. The Conservative party is the party
that represents business in the House of Commons.
Audit and Corporate Governance Reform
(Edinburgh North and Leith)
(SNP)
2. What recent progress her Department has made on bringing
forward legislative proposals on reform of audit and corporate
governance. (900368)
The Parliamentary Under-Secretary of State for Business and Trade
()
We remain committed to reform. Significant reforms have already
been delivered to the Financial Reporting Council to strengthen
its capabilities and drive up audit quality.
The Institute of Chartered Accountants of Scotland has branded
the Government’s decision to leave the audit and governance
reform Bill out of the King’s Speech as a lost opportunity and a
huge blow to the interests of UK businesses and the public. The
Government have been promising the Bill since 2021. Will they
reconsider that backward step and make the UK’s corporate
regulatory framework fit for purpose in the 21st century?
Time and again, Opposition parties seek to wrap businesses up in
red tape, whereas Conservatives are keen to cut red tape.
Consultation with businesses revealed concerns about imposing
additional reporting requirements, while the Government are
looking to simplify and streamline existing requirements.
(Rugby) (Con)
This week, the Business and Trade Committee took evidence from
Wilko. Business collapses such as that of Wilko, Carillion,
Thomas Cook and Patisserie Valerie have been a consequence of
failures in the audit process, costing people their jobs and
hurting investors and suppliers. Audit reform was recommended by
the then Business, Energy and Industrial Strategy Committee in
2019, and the Government offered to bring forward a draft Bill. I
know the Minister wants to reduce red tape, but does he agree
that some form of action is now pretty urgent?
I was delighted to give the Select Committee evidence on Wilko.
The administration report on Wilko is continuing and clearly we
need to see the findings, but investigations so far have not
shown that director misconduct played an instrumental part in
Wilko’s failure, although I think it is clear to all concerned
that there were failures in management that led to the company’s
demise.
Mr Speaker
I call the Scottish National party spokes- person.
(Gordon) (SNP)
How strange the change from minor to major in that response.
Financial transparency and accountability are essential
components of economic stability. For three years now, the
Government have been promising legislation and improved checks on
company finances, but they have repeatedly failed to deliver. How
can the Minister justify leaving the audit and governance Bill
out of the King’s Speech, when it is supported by businesses,
regulators and auditors alike?
We work very closely with the Financial Reporting Council. No one
can deny that the FRC has changed its approach completely and is
now a much more effective regulator. Sir did a fantastic job when he was there, and the
current chief executive, Richard Moriarty, and chair, Jan du
Plessis, are following his work. We are confident that the FRC
can make sure that the UK’s corporate regime works effectively,
without tying businesses up in red tape.
Fire and Rehire
Dame (Llanelli) (Lab)
3. What steps she is taking to prevent the use of fire and rehire
practices. (900369)
(Birkenhead) (Lab)
17. What steps she is taking to prevent the use of fire and
rehire practices. (900385)
The Parliamentary Under-Secretary of State for Business and Trade
()
The Government consulted on a draft statutory code of practice on
fire and rehire earlier this year. The Government response and
the final version of the code will be published in spring next
year. The code sets out employers’ responsibilities when seeking
to change contractual terms and conditions of employment, and is
designed to ensure that dismissal and re-engagement is used only
as the last resort.
Dame
The very fact that only last week P&O Cruises felt able to
say it would impose new contractual terms on workers through fire
and rehire tactics shows that some employers still feel that they
can use these tactics with impunity, in spite of the Government’s
promise to clamp down on them. I thank the Minister for his
answer, but is there any way he could bring in the legislation
more urgently, so that we can protect our workers properly?
I agree with the sentiment behind the hon. Lady’s question in
terms of bringing legislation forward as quickly as possible. Of
course, we have to get this right. I have to say that P&O was
not a fire and rehire situation; it was a fire-only situation,
which was strongly condemned by this Government and by many other
stakeholders, and a civil investigation is ongoing into the
matters surrounding that case. But yes, the hon. Lady is right,
and we are keen to get the new statutory code of practice in
place as soon as possible. We expect that to be in spring next
year, and once it is in force, the employment tribunal can
increase employees’ compensation by up to 25% when an employer
fails unreasonably to comply with the code.
Last week, concerns were raised that the Carnival group was
making provision to fire and rehire hundreds of staff working on
P&O Cruises and Cunard Line, reviving memories of last year,
when P&O Ferries sacked over 800 of its employees and
replaced them with agency labour, while the Government sat back
and let it happen. Does the Minister agree that the only way to
provide workers with the security they deserve is by legislating
to outlaw fire and rehire tactics once and for all? If not, it is
time the Government came clean with the British public and
admitted that they will always side with bad bosses.
That is not the case at all. We take these matters very
seriously, but we do not think that completely banning fire and
rehire is the right thing to do because there are some situations
in which companies need to restructure quickly. We think that
employees’ proper consultation rights should be observed. Where
they are not observed and where an employer does not follow the
statutory code of practice, employment tribunals can impose a
significant uplift on redundancy payments. We think that is the
best way to deal with this, by striking a balance between
companies and their workers.
Mr Speaker
I call the shadow Minister.
(Ellesmere Port and Neston)
(Lab)
Fire and rehire is rife in this country. Research published by
the Chartered Institute of Personnel and Development found that,
between March 2020 and July 2021, 43,000 employers changed their
employees’ contracts through fire and rehire techniques. The
Government promised in March 2022 that they would take action
following the P&O scandal, and we now learn that it will be a
full two years since that time before anything actually changes.
Given the propensity for using fire and rehire tactics, can the
Minister tell us how many employees he estimates will have had
their contract changed through fire and rehire in that two-year
period?
I do not have that number to hand. We want to strike a balance
between employers and their workforces. We condemn what P&O
did. We need to bring in new measures on fire and rehire, and we
have committed to do that. A consultation is clearly needed to
make sure those provisions are fair on both businesses and
workers. That is what we are doing right now, and we intend to
bring those provisions before the House next spring.
High Street Outlets
(Mid Bedfordshire)
(Lab)
4. What steps she is taking to encourage businesses to open
outlets on high streets. (900371)
(Ealing Central and Acton)
(Lab)
7. What steps she is taking to encourage businesses to open
outlets on high streets. (900374)
The Parliamentary Under-Secretary of State for Business and Trade
()
In addition to small business rate relief, under which businesses
with a rateable value of less than £12,000 pay no business rates
whatsoever, in his autumn statement the Chancellor announced a
further business rate support package, worth £4.3 billion over
the next five years, to support small businesses and the high
street.
My constituents in Flitwick have been dismayed over the past few
years as their high street has been gradually hollowed out,
losing much-loved businesses and, recently, both their post
office and banking facilities. Sadly, that is far too familiar
for people in towns and villages across my constituency, where
businesses are weighed down by high cost pressures and a business
rate system that no longer seems fit for purpose or fair. When
will the Government commit to bringing forward the comprehensive
business rates reform that my businesses are crying out for, so
that we can get back to revitalised, much-loved high streets?
I thank the hon. Gentleman for his question and welcome him to
his place in the House.
Of course, we are very concerned about the high street. The
pressures on the high street are largely caused by changing
consumer habits, but the Government have stepped in to ease
pressures, such as through the £20 billion energy bill support
scheme and the £17 billion business rate package.
The hon. Gentleman talks about completely scrapping the current
business rate system, which Labour has committed to do, but it is
incumbent on Labour to set out how it will replace the £25
billion that business rates currently add to the Exchequer. What
is the solution? It is not right for him or others simply to say
they will scrap that £25 billion without setting out how they
will replace it.
Dr Huq
The vanishing of Debenhams, Wilko and Paperchase has left huge
holes in our town centres— I have lost a Wilko in both Ealing and
Acton. Analysis shows that the incentivisation of out-of-town
retail is the culprit. Labour has a five-point plan to revive our
high streets, putting communities first. What are the Government
doing about all this?
I do not accept that, although out- of-town shopping can put
pressure on the high street. Local authorities have to be very
careful when they give planning consent for out-of-town shopping
centres that could put pressure on the high street. That is
clearly an important part of the planning process, but it is not
the responsibility of central Government, of course. I would be
interested to see that five-point plan, but if it includes the
scrapping of business rates, which raise £25 billion, I ask the
Labour Front Bench team once again—I have yet to receive an
answer—where is that money coming from?
(Elmet and Rothwell)
(Con)
Labour-run Leeds City Council has decided that it wants to bring
parking charges to my market town of Wetherby—it currently has no
parking charges. Does my hon. Friend agree that the investments
we are making are all very well, but if local authorities make it
harder for shoppers by increasing their costs, that will choke
off the high street rather than help it?
I thank my right hon. Friend for his question and he is
absolutely right to say that some local authorities see parking
charges as potential revenue raisers, but this is in effect a tax
on business. Local authorities can, of course, make charges where
appropriate, but they should only cover the cost of maintaining
those car parks; they should not be a punitive tax on
businesses.
(New Forest West) (Con)
There are streets in the west end of this city, important to our
economy, that would certainly benefit from the ability of
tourists to reclaim VAT, aren’t there?
My right hon. Friend raises an important point that this
Department has looked at carefully. We are concerned about the
impact of the withdrawal of that tax concession on businesses,
not just for these businesses themselves, but for the other
businesses that rely on foreign visitors—I am talking about
hoteliers, restauranteurs and so on. We are keen to look at this
matter. The Chancellor committed in his autumn statement to
review the evidence to see what impact this was having. We will
look at that with great interest and make our views known
strongly to the Exchequer.
Exports: Small and Medium-sized Businesses
(West Lancashire) (Lab)
5. What steps she is taking to help small and medium-sized
businesses to export. (900372)
(Bedford) (Lab)
19. What steps she is taking to help small and medium-sized
businesses to export. (900388)
The Minister of State, Department for Business and Trade ()
The Government’s export support for SMEs includes the export
support service; the export academy; more than 400 export
champions; our network of nearly 200 trade advisers; and support
provided around the world through the international market
service. Just last week, my noble Friend the Minister with
responsibility for exports announced that UK Export Finance is
introducing more flexible fast-track financing for SMEs, making
it easier than ever for UK firms to sell into international
markets.
Last week, I welcomed the Duke of Gloucester to my constituency
to award local SME GaraDry the King’s award for enterprise for
its innovation in international trade. How can such businesses
have confidence in the Government’s support for SMEs when
Britain’s export growth is among the worst of the G7 economies
and is forecast to be falling?
I certainly welcome the royal visit that the hon. Lady had in her
constituency; it is always fantastic to see that support,
particularly for exporters. However, I think she is a bit off on
the data. When we look at export data, we see that we had £877
billion-worth of exports in the 12 months to the end of September
2023. We are heading towards the £1 trillion export target, and
that figure is up by almost £200 billion—or 29%—on the figure
from five years ago, which was before Brexit.
In 2021, the Government launched a rebranded trade show programme
pilot to great fanfare, but between November 2021 and March 2022
only two businesses in the UK were funded under the programme. We
now hear that the scheme has been shelved. Will the Minister
explain what has happened to that initiative, which has launched
a number of household British fashion brands abroad and which
served as a vital gateway under the last Labour Government for
SMEs to access new markets?
The last Labour Government were, of course, in office rather a
long time ago. It is not always incumbent on successive
Governments more than a decade later to keep previous Labour
Government schemes going. The scheme to which the hon. Gentleman
refers was a pilot, which did not yield the successes that we
might have hoped. However, I will take no criticism from him and
the Labour party for the support we are giving to exporters. We
are spending £200 million over this spending review period to
support SMEs to grow and succeed internationally, and we have a
record to be commended.
(Stafford) (Con)
As the Prime Minister’s trade envoy to Kenya, may I welcome the
fact that this week the Government held the successful global
investment summit and are taking steps to help British businesses
to export? I recently returned from Nairobi, where I visited some
of the UK’s flagship investments, including in infrastructure and
clean energy. Will the Minister provide an update on the Africa
investment summit next year? I also ask that the UK continues to
bang the drum for British businesses to export to Kenya, the
gateway to east Africa.
First, let me commend my hon. Friend for winning “Speech of the
Year” at last night’s The Spectator parliamentary awards. She has
continued her fine form today. She does an amazing job for the
country as the Prime Minister’s trade envoy to Kenya, and her
recent visit in September was a big success, particularly on the
infrastructure side of things. She has already referred to
railways and other infrastructure. She mentioned the UK-Africa
investment summit, which will take place in London next year and
will further our engagement with Kenya and other African
countries, fostering modern partnerships in trade and investment
in areas such as resilient infrastructure, clean technologies and
renewable energy.
(Vale of Glamorgan) (Con)
I welcome my right hon. Friend back to his post. I pay tribute to
him and to the Secretary of State for the international trade
deals that they have struck during their period in office. The UK
has strategic relationships with a number of Gulf nations. What
progress is being made on a free trade agreement with the Gulf
Cooperation Council? If it is more challenging to strike a deal
across all nations, what bilateral trade agreements can we
explore in order to exploit the opportunity for those nations to
invest significantly in the UK?
I am excited by the prospect of the deal with the Gulf
Cooperation Council, with which the Secretary of State is very
much engaged, and I am looking forward to being re-engaged with
it. It is a huge opportunity for us, as the latest figures show
that total trade between the UK and the Gulf is worth more than
£60 billion. We are looking forward to moving the negotiation
forward and getting a very good deal for the UK.
Mr Deputy Speaker ( )
I call the shadow Minister.
(Harrow West) (Lab/Co-op)
I welcome the Minister back to the Department for Business and
Trade, and I look forward to helping him hopefully to do better
this time around. According to the International Monetary Fund,
over the past decade British food and drink exports, including
from SMEs, rose by just 3%, which was the lowest growth of any G7
country. The US, Canada, Italy and Japan all saw their exports
grow by between 30% and 95%. Government Ministers will not
negotiate a veterinary agreement with the EU, which would help,
they have cut funding for trade missions, and now the Secretary
of State has cut funding to go to trade shows too. Why will
Ministers not share our ambitions for Britain to have the fastest
export growth rate of any G7 country?
Of course, the hon. Gentleman and I have been around in these
jobs for a while. He was possibly the last Trade Minister under
the last Labour Government, so I will not be taking any lectures
from him on how to improve UK exports. We have been financing
dozens of global trade missions and we are spending £200 million
over the spending review period on exports in general. On the
export figures, he neglected to mention services exports, which
totalled £463 billion in the 12 months to September 2023. That is
a huge increase of 42% on our performance in 2018, before
Brexit.
Retail Crime
(Cambridge) (Lab)
6. What assessment she has made with Cabinet colleagues of the
potential impact of retail crime on high street
businesses.(900373)
The Minister for Industry and Economic Security ( )
The Government are clear that violent and abusive behaviour
towards any public-facing worker is never acceptable, and we
recognise the implications that such incidents can have on
businesses as well as victims. On 23 October, the Government
launched a retail crime action plan, which includes a commitment
to prioritise police attendance at the scene where violence has
been used towards shop staff, where an offender has been detained
by store security or where evidence needs to be secured by police
personnel. The Government also launched Project Pegasus, a unique
private-public partnership that will radically improve the way
retailers are able to share intelligence with the police.
In recent weeks, I, like many colleagues, have visited shops in
my constituency as part of USDAW’s—the Union of Shop,
Distributive and Allied Workers—Freedom from Fear campaign. I
have heard from staff about the daily levels of verbal and
sometimes physical abuse they face, and the huge losses from
theft. Will the Minister say more about what the Government are
doing to stem that tide of lawlessness, particularly for
independent retailers who may not be part of the Pegasus Project?
Will she also say how much is being lost to theft, because that
costs all of us as customers, as well as costing retailers?
Ms Ghani
The hon. Gentleman makes an important point. This is not a
victimless crime; it impacts shops, workers and customers. Credit
is due to the hon. Gentleman for visiting the shops in his
constituency. Overall crime is down by 54% since 2010, and down
by 10% since last year. However, he is right that shoplifting is
up, which is why the action plan is so important. The action plan
works for our high streets because it is about ensuring that the
police are determined to collect evidence and to go after repeat
offenders and organised gangs.
Project Pegasus is key because it is a public-private
partnership. We have created an extra offence, with a longer
sentence, for those who are violent towards a shop worker. With
those extra programmes of work and evidence collection, more
people will be convicted, so those who are involved in crime
against shops will spend some time in prison.
Regulators: Statutory Duties
(Weston-super-Mare) (Con)
8. If she will make a comparative assessment of the adequacy of
the number of statutory duties of the Competition and Markets
Authority and other regulators reporting to her
Department.(900376)
The Parliamentary Under-Secretary of State for Business and Trade
()
The CMA has a primary statutory duty to promote competition both
inside and outside the UK for the benefit of consumers, which
provides the CMA with a clear, strong focus on delivering for
consumers. In our recent steer to the CMA, we did point out how
very important it is that it focuses also on economic growth.
Regulators such as the CMA have huge powers, so Parliament must
give clear instructions about how those powers should and should
not be used. Does the Minister agree that the CMA’s instruction
is a model of the kind of clear and strong legal duty that leaves
no doubt in regulators’ minds about the job that Parliament has
asked them to do. Will he join me in pushing for equally clear
and focused duties for other economic regulators where, sadly,
the same cannot currently be said?
I thank my hon. Friend for his question and for his very
important work in this area. I know that reducing the regulatory
burden is a cause that is very close to his heart, and to the
hearts of those in the Chamber today who supported his amendment
in the recent Digital Markets, Competition and Consumers Bill.
That view is also shared by myself and by the Secretary of State.
We are very keen to make sure that, as well as ensuring that
sectors are well regulated, our economic regulators focus on
competition and economic growth.
(North West Leicestershire)
(Reclaim)
I disagree. The Competition and Markets Authority is not only the
dog that does not bark, but the dog that does not bite. We see
multinational corporations and investment funds of such a size
that they have more power than a sovereign Government. When will
the Government give the CMA the powers and authority needed to
tackle the corporate monopolies and cartels that have so much
sway over our lives?
The hon. Member raises an important matter. That is why the
Government are legislating in this space, through the Digital
Markets, Competition and Consumers Bill, which gives the CMA huge
new powers, particularly over some of our largest online
platforms—platforms that have what we describe as strategic
market status. This is world-leading legislation that will tackle
many of the examples of detriment that he will be aware of and
that he raises in his question today.
High Street Postal Services
(Vauxhall)
(Lab/Co-op)
9. What steps she is taking to maintain access to high street
postal services.(900377)
The Parliamentary Under-Secretary of State for Business and Trade
()
The Government protect the post office branch network by setting
access criteria and minimum service levels to be provided by
branches across the country. More post offices have opened this
year than have closed. The network is as large today as it has
been for five years, with around 11,700 branches open, above the
11,500 target that we set for the Post Office.
The Minister mentioned that more post offices are opening.
Actually, they are closing. The Clapham Common post office in my
Vauxhall constituency has been earmarked for closure and there
are no current plans to replace it. I am fighting this closure,
along with my hon. Friend the Member for Streatham () and local ward
councillors in the Communications Workers Union. This is a
pattern that we are seeing across the country. It has been
identified that 260 postal shopfronts have closed across the
country in the past 10 years. With those closures, we are seeing
elderly and vulnerable people—people who need their post offices
on the high street—having to travel further. Will the Minister
tell me what more he and the Government are doing to protect
these vital services?
The hon. Member is absolutely right to raise this issue. The Post
Office has launched a public consultation regarding the Clapham
Common post office. The Post Office maintains that locals will
continue to have good access to services. There is a post office
within a mile of the Clapham Road branch, and three further
branches within two miles. Nevertheless, the Government support
the post office network with a significant amount of financial
support—£2.5 billion over the past 10 years—so we do continue to
support post offices. We know how important they are to
constituents and other colleagues in this House. I am very happy
to meet her to discuss this particular case.
CPTPP: Ratification
(Hayes and Harlington)
(Lab)
10. What her planned timetable is for the ratification of the
comprehensive and progressive agreement for trans-Pacific
partnership.(900378)
The Minister of State, Department for Business and Trade ()
We are working at pace to ratify the CPTPP, which we hope to
bring into force next year. We are the first European country to
join the CPTPP, and I know how powerful it will be for British
businesses and consumers, which is why this Government are
progressing legislation as quickly as possible, with Second
Reading of the Bill having taken place in the other place on 21
November. We are already playing our part as the second largest
economy in the agreement. The Secretary of State met other CPTPP
Ministers two weeks ago in San Francisco to discuss the
blossoming future of the agreement.
Across the House, over a period of time, Members working with
organisations such as the Trade Justice Movement have expressed
concern about the inclusion of investor-state dispute settlement
procedures within treaties, because they restrict our own
country’s ability to regulate. I raised that issue in September
and suggested that, as the Government have done with Australia
and New Zealand, we agree in a separate letter that the
settlement procedure will not be included in this treaty. I was
then told—rather curtly—that it was too late. Actually, it is not
too late. There is the potential to do a side letter, as we have
with other countries, to exclude an investor-state dispute
settlement procedure. In the light of the Government’s
negotiating remit for the free trade agreement with Canada, the
Government are specifically seeking to exclude that procedure. I
wonder whether the Government might think again.
It is good to be sparring with the right hon. Gentleman again
from the Dispatch Box—we have both had a few ups and downs since
we last went head to head. CPTPP does not compromise the UK’s
right to regulate at all; it expressly preserves the rights of
states to regulate proportionately, fairly and in the public
interest. It is worth reminding the House that the UK has never
lost an ISDS case. Such procedures actually help to protect UK
investments abroad. British investments in Canada totalled £40.6
billion in 2020-21, which will be covered for the first time by
these protections. As I say, if we cannot trust Canada in
international affairs, who can we trust? I assure the right hon.
Gentleman that the deal cannot be ratified until the legislation
has been approved by Parliament and the deal has completed the
Constitutional Reform and Governance Act process.
Business Exports
(South West Bedfordshire)
(Con)
11. What steps she is taking to help increase the number of
businesses that export.(900379)
The Minister of State, Department for Business and Trade ()
The Government’s published export strategy focuses on addressing
the challenges that UK businesses face when exporting. The
Government continue to promote exporting, and to support
companies through our network of international trade advisers,
sector specialists, and the export support service. All our
services can be accessed on great.gov.uk.
In my constituency I have companies such as EyeOL, Lindal Valve,
Peli Biothermal, Friction Marketing, Signature Flatbreads and 198
smaller businesses, all of which export globally. The smaller
businesses export through Amazon. That is fantastic, as there is
evidence that businesses that export can pay their staff more,
but what is the best way to get businesses that have not yet
realised that the world is their marketplace exporting not just
to Europe but around the whole world?
I commend my hon. Friend for being a long-standing champion of
his constituency exporters. As the Prime Minister’s trade envoy
to South Africa and Mauritius, he knows only too well the
importance of exports. The Government’s export strategy is clear.
We have a clear programme to assist small and medium-sized
enterprises, particularly first-time exporters. All of our
services can be accessed via great.gov.uk, and we have a network
of international trade advisers locally for Bedfordshire who are
able to help as well.
Business in Essex: Exports
(Witham) (Con)
12. What steps she is taking to help support businesses in Essex
to export.(900380)
The Secretary of State for Business and Trade ()
As a fellow Essex MP, I can assure my right hon. Friend that this
matter is close to my heart. Businesses can access support
through great.gov.uk, including our self-serve digital offer, the
export support service, international trade advisers and UK
Export Finance. My Department is helping Essex companies such as
Icon LifeSaver in Colchester to secure potential sales of over
£10 million in the US, Colombia and Estonia. Kestrel Liner
Agencies, which is headquartered in my constituency and last year
received its third Queen’s Award for international trade, has
also benefited. We are focused on priority trade barriers in
particular, which could boost UK exports by around £20 billion
over five years.
The Secretary of State will know inside out what the wonderful
county of Essex has to offer when it comes to business exports.
We have companies such as Wilkin & Sons and Wicks Manor, and
many other producers who will sell the produce that households
across the country will enjoy this Christmas, at home and abroad.
Will the Secretary of State highlight how she is working across
Government with other Departments to reduce the barriers to
export that cover, for example, produce, manufacturing costs,
energy costs, and even the processing of animals?
Removing barriers to trade is one of this Government’s top
priorities. My right hon. Friend will know many of the things
that the Government have been doing, including subsidising energy
bills, because we recognise the difficulties that manufacturers
and processing plants face. At the moment I am particularly
focused on resolving trade barriers. We have resolved 178 trade
barriers worth more than £6.5 billion to businesses, including
those in Essex, over the next five years. Food producers in her
constituency specifically will be pleased to know that just last
month, when I was in Japan for the G7, we resolved a barrier
restricting exports of cooked poultry from the UK to Japan, which
I think will provide a festive boost to UK exporters worth an
estimated £10 million over five years.
Arms Export Licences: Israel
(Edinburgh South West)
(SNP)
13. Whether she has made an assessment of the potential merits of
revoking arms export licences to Israel.(900381)
(Coatbridge, Chryston and
Bellshill) (SNP)
15. Whether she has made an assessment of the potential merits of
revoking arms export licenses to Israel.(900383)
The Secretary of State for Business and Trade ()
Since the barbaric terrorist acts by Hamas against Israel on 7
October and the subsequent conflict in the region, the Government
have been monitoring the situation very closely. The UK supports
Israel’s legitimate right to defend itself and take action
against terrorism, provided that that is within the bounds of
international humanitarian law. Export licences are kept under
careful and continual review as standard, and we are able to
amend licences or refuse new licence applications if they are
inconsistent with the strategic export licensing criteria.
No one is suggesting that Israel does not have the right to
defend itself—but, as the Secretary of State says and we agree,
within the bounds of international law. The mass killing of
civilians in Gaza should concern us all. Without resorting to
platitudes about the relative toughness of the UK’s arms export
controls, could she please identify which arms export licences
are currently in force, including open licences for end use by
the Israeli defence and security forces, and provide details of
them to the House?
I do not believe that is something that I am able to do or should
do. I can tell the hon. and learned Lady that last year we
granted 114 standard individual export licences for military
goods valued at £42 million to Israel. If there is a specific
issue that she would like to highlight, we are prepared to look
at it, but she will know that security and defence exports are
not necessarily best discussed on the Floor of the House or in
public, for obvious reasons.
A state that supplies military equipment that is used in the
commission of violations of international humanitarian law is at
risk of complicity in a humanitarian catastrophe. In continuing
with those licences and supplying UK arms to Israel, what
assessment does the Secretary of State make of the potential for
UK Government complicity, if Israel is found to have committed
war crimes in Gaza by the ongoing International Criminal Court
investigation?
I am quite surprised that there is not a word of condemnation,
and the implication that the UK is complicit is really not the
sort of thing we would expect from a British Member of Parliament
in this House. I completely disagree with the premise of the hon.
Gentleman’s question. The Government take our defence export
responsibilities extremely seriously and operate some of the most
robust and transparent export controls in the world.
India Trade Deal
(Haltemprice and Howden)
(Con)
14. What recent progress she has made on negotiating a trade deal
with India.(900382)
The Minister of State, Department for Business and Trade ()
I am pleased to confirm that advanced talks with India are
ongoing. We are in round 13, with discussions currently focused
on goods, market access, services and investment. We remain clear
that we will not sign until we have a free trade agreement that
fully benefits the UK people and economy. We are focused on the
deal, not the date.
Mr Davis
Total trade in goods and services between the UK and India was
£36.3 billion in the year to March 2023. An FTA with the
fifth-largest economy in the world, and one of the
fastest-growing, would be a massive boost to the UK economy and
put UK businesses at the front of the queue to supply India’s
growing middle class, which is expected to be a quarter of a
billion consumers by 2050. This is an important exploitation of
Brexit, so will the Minister do all he can to bring this deal
over the line as soon as possible for Britain?
My right hon. Friend of course has a lot of experience in complex
negotiations and I can say that we, like him, will not be
satisfied until we have the right deal. He is right that a deal
with India would be a big step forward in the UK’s post-Brexit
strategy to refocus UK trade on the Indo-Pacific region, which
represents one third of global GDP. My negotiators and I continue
to work at pace and we will negotiate until we have secured the
right deal. I warmly welcome his interest in doing more trade
with India.
Steel Industry
(Gower) (Lab)
16. What steps she is taking to help support the steel industry.
(900384)
The Minister for Industry and Economic Security ( )
The Government recognise the vital role of the steel sector, and
are working with the sector to achieve a sustainable future. We
have announced £500 million of support towards a joint £1.25
billion investment with Tata Steel to achieve the transformation
of Port Talbot, and we are also in talks with British Steel. We
have provided the steel sector with £730 million in energy costs
relief since 2013, and announced the British industry
supercharger—decisive measures to reduce energy costs for
energy-intensive industries.
In communities across the country—particularly in Wales through
Port Talbot—steel has created high-paying, productive jobs for
generations, but we are the only G7 country with a steel industry
in decline. Thousands of jobs are being lost. What we need is a
long-term plan that supports steelworkers and their communities
to maintain those good jobs into the future and transition to net
zero, so why is the Minister making short-term decisions instead
of delivering on the long-term industrial strategy that
communities such as mine, and our steel industry and workers,
desperately need?
Ms Ghani
That is just not correct, especially the comparisons to the G7.
The decisions over Port Talbot have been hanging around for quite
some time, and we were able to work with Tata Steel to ensure
that jobs were confirmed long into the future. Tata Steel employs
more than 8,000 people, and that was under serious threat until
the investment was secured. Now consultation is taking place with
the unions, and the reality is, as the media have noted, that the
unions themselves are not sure how they want to take this
forward. We were absolutely sure that we wanted steelmaking in
that area and that jobs should be secured. That is why we offered
the support that we did.
(Scunthorpe) (Con)
I have written again to the Secretary of State to seek specific
confirmation of the Government’s position on a virgin steelmaking
sovereign capability in this country. Will she ensure that that
specific question is addressed when I receive a response?
Ms Ghani
My hon. Friend is first and foremost an advocate for the
steelworks and steelworkers in her constituency. Obviously that
letter will be on its way, and I thank her so much for raising
it.
(Croydon Central) (Lab)
We are used to this Government flip-flopping all over the place.
It would be funny if it were not so serious for business, exports
and jobs. So when we heard the Treasury telling everyone who
would listen that the Government’s response to the carbon border
adjustment mechanism would be in the autumn statement, we were
not surprised that it was not. The future of steel investment and
growth relies on a clear and certain path from Government. We
cannot have our business disadvantaged any more, so what is the
decision on the CBAM? If this Government cannot decide, is it not
time to make way for one who can?
Ms Ghani
Decisions have to be taken while responding to the consultations
that take place. We have been absolutely determined to ensure
that steelmaking will remain competitive in the UK, which is why
we have been able to support the steel sector with high energy
costs and put over £1 billion in place to deal with
decarbonisation technology. When it comes to Tata, the support we
have pledged involves an investment of over £1 billion to ensure
that jobs remain secure in the future, and negotiations continue
with British Steel as well. That is the support that we have
provided and will continue to provide for steel in the UK.
Topical Questions
(Stockton South) (Con)
T1. If she will make a statement on her departmental
responsibilities.(900391)
The Secretary of State for Business and Trade ()
This week, I hosted more than 200 global CEOs and investors at
the UK global investment summit, which was an extraordinary
success. The Prime Minister set a £9.5 billion target to beat,
and we tripled it, securing £29.5 billion of investment and more
than 12,000 jobs. The success of the GIS is a vote of confidence
in the UK. My Department’s work, supported by the £20 billion
business tax cut in the autumn statement, is securing our country
as a world-leading business and investment destination.
Many people are aware of the incredible story of the Redcar
steelworks site being reborn as Teesworks, creating 20,000 jobs
and unlocking £2 billion in private investment. Fewer people are
aware that Stockton’s very own freeport business park is being
built at the airport. Does my right hon. Friend agree that
Teesside, as the home of the UK’s first and biggest freeport,
offers a unique opportunity to those investing in the industries
of the future?
I do agree, and my hon. Friend is quite right to praise the
progress that has been made on delivering Teesside freeport. The
freeport has already been successful in securing several landmark
investments, including from SeAH Wind, which is investing £650
million in building an offshore wind manufacturing facility. That
will create around 750 high-skilled jobs and builds on the
measures announced in the autumn statement last week to further
strengthen the offer of UK freeports. My Department will continue
to work with freeports, in Teesside and elsewhere, on securing
high-value investment.
(Stalybridge and Hyde)
(Lab/Co-op)
This is the Department in charge of growth, investment and
exports. In the latest figures, following the autumn statement,
growth has been downgraded. Business investment is still forecast
to be the lowest in the G7, and goods exports have declined, both
to the EU and to non-EU countries. Given that there are so many
amazing businesses and sectors in the UK, how do the Government
account for their poor performance?
I will not allow the hon. Gentleman to spin his way out of what
is actually a very good news story for the Government. The fact
is that the UK has overtaken France to become the world’s
eighth-largest manufacturing nation. We are the world’s
fifth-largest exporter. We are growing faster than Germany and
France, and have received more investment than them combined. We
are the top investment destination, certainly for financial
services. We are doing well. Perhaps this is the moment for me to
tell him what businesses told me at the global investment summit:
that they were unimpressed by the Labour shadow Ministers they
had met; that their offer was unimaginative; and that they were
repetitive, and had no vision for the future of business in the
UK.
We follow the Secretary of State’s Twitter feed, and quite
simply, we do not believe her.
I want to ask the Secretary of State about late payment. In the
nine years that the Government have spent consulting on late
payments, 450,000 businesses have gone under while waiting to be
paid. Why do the Government’s new plans on late payment apply
only to firms contracting with the Government? Why do they not
rather follow our proposal to make sure that all public companies
disclose their payment practices?
I have been working with the Federation of Small Businesses and
others on late payments. The hon. Gentleman will have heard the
measures announced in the autumn statement; this is an issue that
the Government take very seriously. I disagree that we are
implementing our plans in a partial way. We will resolve this
issue, but I am afraid that I completely disagree with the
Opposition: have done quite a lot on this, and many businesses
have praised the measures that we announced in the autumn
statement.
(Haltemprice and Howden)
(Con)
T4. On 14 November, the Government signed a memorandum of
understanding with the US state of Florida. This is the seventh
such agreement that the Government have signed with a state in
the US, and I understand that there are ongoing discussions with
other states. Obviously, that is welcome. Will the Secretary of
State give us an assessment of the effect of this approach, and
tell us what the next steps are to getting a more general trade
agreement with the United States?(900394)
We are ready to have a free trade agreement with the US, but it
is not undertaking free trade agreements with any country. That
is, of course, disappointing, but it knows that we stand ready.
That is why we have the state MOU programme. The latest figures
show that UK-US trade has reached £310 billion. We are the
biggest investor in Florida. I was pleased to meet Governor
DeSantis earlier this month, and I also met the California
Governor, Gavin Newsom, who wanted to be even faster in signing
an MOU with the UK. They believe that this country has a lot of
opportunity, and they want to do business with us.
(Gordon) (SNP)
Import tariffs on egg products allow us to recognise the higher
cost of UK egg production because of safety, welfare and
environmental considerations. Can the Secretary of State give an
assurance that eggs and egg products will be afforded sensitive
product status by the UK in future free trade agreement
negotiations, and that import tariffs will remain in place on
those products?
The Minister of State, Department for Business and Trade ()
It is difficult to comment on tariffs in live negotiations, but I
would say two things to the hon. Gentleman: first, this country
imports very few eggs from abroad, and secondly, anything that
happens with imported eggs would not change our standards on food
imports, food safety and animal welfare in this country.
(Weston-super-Mare) (Con)
T7. In yesterday’s data Bill debate, Ministers gave clear and
positive replies about the importance of interoperable data
standards, and the need for an investable timetable of which
sectors will get smart data and when. However, they were much
less clear—one might even call it bashful—about giving a date for
when that timetable will be published. Is my hon. Friend the
Minister willing to be a little less coy this
morning?(900400)
The Parliamentary Under-Secretary of State for Business and Trade
()
I am not known for my coyness. My hon. Friend has done very
important work in this space, and we share his ambition: I chair
the Smart Data Council, and we are planning to open up databases
right across our economy to allow for more competition in the
worlds of energy, telecoms, and buying and selling houses. He has
been a great champion of all those measures. I am very keen to
bring forward the roadmap that my hon. Friend has referred to,
hopefully as early as January next year.
(Gower) (Lab)
T2. At their busiest time of year, British cheese exporters are
warning of damaging losses as the Government continue to fail to
reach a deal that ensures access to the Canadian market. Every
day that the Government fail, companies such as the Snowdonia
Cheese Company in north Wales lose contracts, and they cannot
make plans with the looming deadline of 31 December a matter of
weeks away. Can the Minister update the House on the negotiations
to extend the deadline for cheese tariff quotas between the UK
and Canada?(900392)
We are aware of the situation, and are working on it—negotiations
to resolve it are actively ongoing. UK cheese is in increasing
demand in Canada, and exports of UK cheese benefit businesses on
both sides of the Atlantic. The UK has made continued and
repeated efforts to find a solution since negotiations began,
including by seeking an extension to the current arrangements,
and we are clear that the UK is rightly entitled to ongoing
access to Canada’s World Trade Organisation cheese tariff quota
under our rights and obligations at the WTO.
(Dudley North) (Con)
As the Prime Minister’s trade envoy to Brazil, I know that the
best way of supporting exports from my Dudley businesses is to
remove barriers to trade. That is why I was absolutely delighted
when both our countries signed a double taxation agreement, in
good faith and to the highest possible standards. There appear to
be complications in Brazil at the moment with ratifying that
agreement through Congress, as we have ratified it through our
Parliament. What more can Ministers—the Chancellor of the
Exchequer, perhaps—do to try to persuade Brazil that it is indeed
a very good deal for itself as well?
First, I praise my hon. Friend for the amazing job he does as the
Prime Minister’s trade envoy to Brazil. Partly due to his
efforts, UK-Brazil trade has increased by 33% in the past year
alone, so we are doing a very good job there. The UK-Brazil
double taxation agreement was passed into UK law in June, and is
estimated to be worth hundreds of millions of pounds to the UK. I
hope that Brazil ratifies the agreement soon: it is very much in
its own interests as well. As my hon. Friend knows, the
Chancellor has made very strong representations to that effect,
and we look forward to strengthening our trade relationship at
the next UK-Brazil joint economic and trade committee next
year.
(Vauxhall)
(Lab/Co-op)
T5. Under current laws, unions are required to use electronic
means to communicate with their members about matters relating to
work, yet are prevented from using the very same electronic
methods when balloting their members for industrial action. Does
the Minister accept that it should be possible to ballot trade
union members on industrial action electronically?(900395)
The hon. Lady raises an important point. That is something we are
looking at; we have been looking at it for some time, and are
keen to bring forward the results of our deliberations very
shortly.
(Tewkesbury) (Con)
May I ask the Trade Minister, whom I welcome back to his
position, what efforts the Government are making to raise
awareness of the developing countries trading scheme,
particularly among African countries? What encouragement is he
giving those countries to take advantage of that scheme, which
would benefit them and us?
Again, we have almost a full turnout of the Prime Minister’s
trade envoys in the House this morning, and I commend my hon.
Friend for the work he does as the Prime Minister’s trade envoy
not just to one country, but to three—Angola, Zambia and
Ethiopia. He rightly takes a strong interest in the UK’s
forward-leaning and exemplary developing countries trading
scheme. The scheme was launched on 19 June by my predecessor, my
hon. Friend the Member for Mid Worcestershire (), who is now the Financial
Secretary to the Treasury, and provides duty-free or nearly
duty-free access to goods to 37 African countries. The scheme was
launched to significant media attention in Ethiopia, and there
was a series of events in more than 10 countries.
I agree with my hon. Friend the Member for Tewkesbury (Mr
Robertson): the onus is on all of us in this House to continue to
extol the virtues and the benefits of the UK’s developing
countries trade scheme. We have taken the EU scheme and gone
significantly further, making it more generous for developing
countries. We should all be united in extolling the virtues of
the UK’s scheme, and of the brilliant job the UK is doing to
promote goods access to developing countries.
(Edinburgh South West)
(SNP)
T6. Could I revisit my earlier question to the Secretary of
State about arms export licences to Israel? I and many others do
not agree with her secrecy approach, and I and many others
believe that Members of Parliament are entitled to this
information, so I will try another approach. Could she detail the
classification and description of the goods, the stated end use
and the licence type, including direct transfers and those via
third countries, and could she place that information in the
Library for Members of Parliament?(900396)
I believe there is a quarterly register that may contain some of
the information the hon. and learned Member is asking for, but I
am not able or going to list every single export decision that
has been made by the export control joint unit. I will see what I
can do to get her a fuller answer, but she will know that this is
a very sensitive issue. I have a quasi-judicial role, and I must
be seen to be impartial at all times. I will do what I can to
provide the information she wants, but I do not have a list to
provide her with this morning, and certainly not on the Floor of
the House.
(Gainsborough) (Con)
On Scunthorpe, what major economy does not have a blast furnace
and the ability to make virgin steel?
The Minister for Industry and Economic Security ( )
Almost all the G20 countries have operational blast furnaces, and
a number of those are transitioning to electric arc furnaces as
well. We know the importance of Scunthorpe, which is a key driver
of economic growth. British Steel provides a third of all
domestic production supplied to the construction and rail
industries. We continue to be in negotiations to make sure that
we secure the best deal, and one that is good value for
taxpayers, when it comes to Scunthorpe.
(Birmingham, Hodge Hill)
(Lab)
On Tuesday, we finally had answers from Lisa Wilkinson about the
mistakes that led to the collapse of that much-loved firm, but Ms
Wilkinson was not able to answer why 70% of the profits in the
last four years were paid out in dividends to family trusts while
the deficit in the pension fund amounted to now £50 million. Will
the Secretary of State ensure that regulators explore every
option to claw back those dividends so that Wilko pensioners are
not short-changed?
The right hon. Member raises a very important point. He has
looked at this matter very carefully, including on the Business
and Trade Committee, and I thank him for his work. I was pleased
to give evidence to his Committee on Tuesday. Clearly, the
Insolvency Service is looking at this. It is looking at the
directors’ conduct report from PricewaterhouseCoopers, the
administrator, which it needs to look at very carefully. It is
clear from that report so far that there is no evidence of
director misconduct, but further work is ongoing. The Insolvency
Service is due to meet the administrator, PwC, in January, and we
will look at the situation as it unfolds.
(Barrow and Furness) (Con)
One of the most effective ways we could strengthen both the
public sector and the private sector is the creation of an office
of the whistleblower, as long championed by my hon. Friend the
Member for Cheadle (). That would strengthen
corporate governance, empower those who see wrongdoing to come
forward and protect them from intimidation, and strengthen the UK
as a place to do business. Given that this week is Whistleblowing
Awareness Week, could I encourage Ministers to bring forward
proposals to support this important initiative?
I thank my hon. Friend for his question and his work in this
area, in which he has great expertise. I met my hon. Friend the
Member for Cheadle () yesterday to discuss this
very matter. She has set out some key proposals in this area. We
are currently undertaking a review of whistleblowing, and we hope
to report to the House very shortly.
