Exports: Small and Medium-sized Businesses
(Merthyr Tydfil and Rhymney)
(Lab)
1. What steps she is taking to support small and medium-sized
businesses to export.(901845)
(Enfield North) (Lab)
6. What steps she is taking to support small and medium-sized
businesses to export.(901851)
The Minister for Industry and Economic Security ( )
My Department continues to help small and medium-sized
enterprises to grow overseas and export to the world, especially
this year—the year of the SME. Businesses can access a digital
self-serve offer and a wide network of support, including trade
advisers, export champions, the UK Export Academy, our
international markets network and UK Export Finance. Last year,
UK Export Finance provided £6.5 billion to exporters of all
sizes, with SMEs comprising a record 84% of those supported
directly with a product.
SMEs in Merthyr Tydfil and Rhymney tell me of their frustrations
around exporting goods and now the Government have scrapped the
trade show programme, which was set up to support British
businesses to attend events and win overseas orders. Will the
Minister tell the House and the thousands of businesses that rely
on that vital support when there will be a replacement?
Ms Ghani
UK exports are increasing. Using current prices, they are up by
£21 billion compared with 2023. The UK trade show was a pilot
programme that did not yield the successes we thought it would,
so we have other schemes in place, including the UK Export
Academy, international trade advisers, Help to Grow and the
export support service. Focusing on Wales, we will soon be
appointing a new international trade adviser to help SMEs.
We are lucky that Enfield North has quite a lot of small and
medium-sized businesses, but they are suffering because of the
cost of spiralling bills and no Government support. Does the
Minister think it is the lack of a Government industrial strategy
or the lack of individual support for exporters that is most
holding our businesses back?
Ms Ghani
That is an extraordinary statement, because in the hon. Lady’s
constituency the greatest level of exports is from professional
and business services, and those exports are increasing not only
to the EU but to countries outside the EU. That is the reality on
the ground, so our strategy is working. UK exports were £859
billion in 2023—a figure that has gone up, not down, by £21
billion. The UK is the second biggest services exporter in the
world—she should be proud of that because many such businesses
are in her constituency. Those exports have increased to 54% from
48%, so there is good news, but we are keen to do more.
Mr Speaker
I call the shadow Minister.
(Harrow West) (Lab/Co-op)
The Office for Budget Responsibility said yesterday that exports,
including from SMEs, will fall even more than expected this year;
growth in exports will be less than 1% in each of the next three
years; and other countries will not be hit the same way. There
have been cuts in the funding to help businesses start exporting
and there has been no deal with the United States, no Diwali deal
with India, and no veterinary agreement with the EU to cut red
tape and slash costs. What does the Minister think is the best
explanation for the Government’s dismal performance on exports so
far?
Ms Ghani
We can get the best explanation from looking at the data behind
what the hon. Gentleman set out. He obviously omitted the
international reality. In the same report, the OBR referenced the
“sluggish growth” in “global economies” and mentioned that
British goods and services will outperform, on average, G7
countries. Those are the facts on the ground. When it comes to
exports, we are exporting not only into the EU but outside the
EU. As I said earlier, professional and business services are
increasing outside the EU by 19%. We have substantial programmes
in place to help small and medium-sized enterprises. We are keen
to learn and do as much work as we can. There will be far more
work coming through as this is the year of the SME.
Mr Speaker
I call the SNP spokesperson.
(Gordon) (SNP)
The trade and co-operation agreement has hit small and
medium-sized exporters the hardest, as most do not individually
have the capacity to deal with the additional bureaucracy and
paperwork created by that trade deal. Does the Minister recognise
that the TCA has disproportionately damaged the competitiveness
of SMEs? What support can the Government offer SMEs to recapture
the market share they have lost in Europe since then?
Ms Ghani
There has not really been a loss in the market share. I have
talked about what is happening internationally. We appreciate
that small and medium-sized enterprises may not have the
resources they need to export into new markets. That is why we
have the UK Export Academy, international trade advisers, Help to
Grow and the export support service. We are also looking at what
trade barriers we can break down and bust to make it even easier
for SMEs to access new markets through the trade deals secured by
the Secretary of State.
Steel Industry
(Stockton North) (Lab)
2. What steps she is taking to help support the steel
industry.(901847)
The Minister for Industry and Economic Security ( )
Our commitment to the UK steel sector is clear. The Government
are contributing up to £500 million in a joint investment with
Tata Steel. We are in talks with British Steel following our
generous offers of support. We have delivered more than £730
million in energy costs relief since 2013, and the British
industry supercharger is coming soon. We updated our procurement
policy note to ensure we are procuring more in the UK, and we are
trying to do everything we can to continue to support the steel
sector.
We are all disappointed that the Government, having abandoned
Teesside steel several years ago, are now ready to give up on
primary steelmaking in the UK and to rely on recycled material
utilising electric arc furnaces. I am pleased to hear that
Teesside is pencilled in for one of them, but not so pleased that
there have been attempts locally to circumvent proper procedures
to secure planning consent. Will the Minister look into that?
More importantly, will she confirm that the Government have a
final copper-bottomed agreement with the industry that the
furnace will definitely be built on Teesside?
Ms Ghani
A number of the issues that the hon. Gentleman raises are
fundamentally locally. We work closely with Mayor , who has done a remarkable
amount of work for his part of the country. The reality is that
the steel sector was placed in an area of uncertainty for some
time. We were able to provide support for Tata, which has ensured
that the steelworks continue at Port Talbot. We provided the
largest grant ever made available to steel, and we are now in
conversation with British Steel. That is what it means to have a
long- term steel strategy to ensure that steelmaking continues
here in the UK.
Small Business Council
(North Warwickshire)
(Con)
3. What steps her Department is taking to support small and
medium-sized enterprises through the Small Business
Council.(901848)
The Parliamentary Under-Secretary of State for Business and Trade
()
On 1 February, the Government reaffirmed our commitment to all
the UK’s 5.5 million small businesses with the creation of the
new Small Business Council, which is looking at key areas, such
as improving business support, access to finance, support and
advice, and breaking down barriers, including barriers to female
entrepreneurship.
As chair of the women and enterprise all-party parliamentary
group, it has been fantastic to see the boom in female-led
businesses over the past few years. We now want to see
consideration of how some of them can grow. Can the Minister set
out how the new Small Business Council can help them to do
that?
I thank my hon. Friend for his question and for all he does for
women in entrepreneurship and on the APPG, on which he has worked
for many years. The Small Business Council has excellent
entrepreneurs on it, such as Emma Heal from Lucky Saint and
Julianne Ponan from Creative Nature, who we rely on for expert
advice. We also have the investing in women taskforce, which has
helped to increase the number of female entrepreneur businesses
from 56,000 in 2018 to 150,000 in 2022. The investing in women
code has 240 signatories. We are keen to do more and to work
alongside my hon. Friend to ensure that the world of
entrepreneurship is as friendly as possible to female
entrepreneurs.
(Huddersfield)
(Lab/Co-op)
Will the Minister ask the Small Business Council to wake up to
the opportunities in the hydrogen sector, not only in terms of
the engineering that supplies that sector, the coming replacement
of batteries and all that transportation stuff, but in the
infrastructure of our country? We have great engineering that is
ready to go with a hydrogen future. When will he wake up to that
opportunity?
We already have woken up to that opportunity. As the hon.
Gentleman knows, we have great opportunities in hydrogen in
Teesside and in Yorkshire, with the Humber hydrogen cluster. It
is something we are keen to support as a Government, and I would
appreciate it if he offered his support, too.
Mr Speaker
I call the shadow Minister.
(Bethnal Green and Bow)
(Lab)
The perfect storm of rising borrowing, rent and labour costs is
continuing to cripple businesses, and the UK small business index
fell 78 points last December, according to Xero Small Business
Insights, to the lowest reading since the middle of the pandemic
in August 2020. The Government have had 14 years to tackle the
barriers facing SMEs. What specifically will the Small Business
Council do, and what will Ministers do to halt the alarming trend
of more businesses closing than opening?
I am sorry that the shadow Minister is so pessimistic about the
world of business. We have spoken at events together many times,
and she hears the mood in those audiences, which is far more
positive than she sets out. We are active in many areas, as she
knows. At the event we both spoke at this week, I talked about
access to finance, support and advice, and removing barriers.
Access to finance has been key, with £1 billion of Start Up loans
having been made to 100,000 businesses. If she listened to the
Budget yesterday, she will have heard about the rise in the VAT
threshold and the growth guarantee scheme. There are many
opportunities for small businesses. We will have 200,000 more
workers coming back into the workplace, tackling another barrier
for businesses. Get with the programme; it is much more exciting
than she thinks.
Free Trade Agreement Negotiations: Israel
(West Bromwich East)
(Con)
4. What recent progress her Department has made on negotiating a
free trade agreement with Israel.(901849)
(Harrow East) (Con)
16. What recent progress her Department has made on negotiating a
free trade agreement with Israel.(901868)
The Secretary of State for Business and Trade ()
Israel remains a part of the FTA programme, and negotiations
continue. I had a productive meeting with Israel’s Minister of
Economy, Nir Barkat, last week in Abu Dhabi, where we discussed
our existing trading relationship as well as how Israel is
managing the challenges of working on an FTA while fighting a
war.
Israel is facing immense challenges in its war with Hamas, but it
is known around the world as a start-up nation thanks to its
extraordinary tech sector, which Brits benefit from every day.
Given the enormous opportunities that a bespoke free trade
agreement with Israel offers to the UK, will my right hon. Friend
update the House on what steps she is taking to advance
negotiations?
My hon. Friend will be pleased to know that we held a virtual
negotiating round with Israel in February, focused primarily on
services. That is one of the things that we are doing to move the
FTA forward, and we will update Parliament shortly in the usual
way via a written ministerial statement.
My hon. Friend is right to highlight Israel’s world-leading tech
sector, which is a reason why we want to modernise and upgrade
our relations with Israel. Our current FTA was signed in 1995—it
is a roll-over from the one we had with the EU—and technical
collaboration, which Israel specialises in, will be made easier
through an enhanced FTA.
Mr Speaker
I call . Not here.
(Orkney and Shetland)
(LD)
Can the Secretary of State give me some assurance that any free
trade agreement with Israel will not allow the importation of
goods produced in settlements on the west bank?
Yes, I can give the right hon. Member that assurance. We are
clear under our existing UK-Israel trade and partnership
agreement that Israeli goods originating from the State of Israel
receive tariff preferences. We also have a separate interim
agreement between the UK and the Palestinian Authority. I confirm
that that will continue to be the case with an upgraded FTA with
Israel. We will not compromise our long-standing positions on the
middle east process throughout this negotiation, including with
respect to settlements.
Trade with Commonwealth Countries
(Romford) (Con)
5. What steps she is taking to increase trade with Commonwealth
countries.(901850)
The Minister for Trade Policy ()
The United Kingdom has trade deals with 33 Commonwealth
countries, and our new developing countries trading scheme offers
more generous tariffs, rules of origin and trading conditions to
developing countries, including 19 Commonwealth countries. The
UK-Australia FTA has seen sharp rises in many UK export sectors,
including furniture tripling year on year and car exports
doubling. Meanwhile, of the 11 parties to the comprehensive and
progressive agreement for trans-Pacific partnership, six are
Commonwealth countries, and that agreement gives us new or
improved access to those important markets.
Mr Speaker, I know that you will be celebrating Commonwealth day
on Monday with the raising of the Commonwealth flag. Will the
Minister take this opportunity to expand our trading relations
with the Commonwealth and look at the idea of an opt-in, opt-out
WTO-style organisation involving all Commonwealth countries?
Surely this is a great opportunity to expand our trade with some
of the world’s emerging economic powerhouses.
I thank my hon. Friend for that question and his commitment to
the Commonwealth. As a constituency MP with a huge Commonwealth
diaspora in Chelsea and Fulham, I totally understand his
sympathies and look forward to celebrating Commonwealth day with
him and others next week. He knows that the Commonwealth does not
make trade rules, nor is it a trade agreement body like the Gulf
Co-operation Council, the European Free Trade Association or the
CPTPP. We think that the better course at present is to ratify
our CPTPP membership and continue to have reduced tariffs under
our developing countries trading scheme. However, we are always
open to new ideas at the Department for Business and Trade and I
am happy to meet my hon. Friend to discuss this further.
(Strangford) (DUP)
I thank the Minister very much for a positive response. The
Commonwealth is important for all of us. The value of UK exports
to the Commonwealth increased by 23% in cash terms between 2021
and 2022, while the value of imports from the Commonwealth
increased by some 30%. We can clearly benefit each other. How can
we ensure that Northern Ireland companies benefit fully from this
enhanced trading partnership?
Of course, Northern Ireland benefits from all our free trade
agreements. I very much look forward to putting the case for
Northern Irish goods and services in the months ahead. We have
economic partnership agreements with 27 Commonwealth countries.
We also have the Commonwealth Heads of Government meeting in
October to look forward to, where we can ensure that the export
of Northern Irish goods and services, as well as those from the
whole of the UK, takes centre stage.
EU Withdrawal: Impact on Businesses
(Cleethorpes) (Con)
7. What assessment she has made of the impact of the UK’s
withdrawal from the EU on businesses.(901852)
The Secretary of State for Business and Trade ()
Since we left the EU, we have used our new freedoms to secure
free trade deals with 73 countries, including EU partners, and
that accounted for £1.1 trillion of UK trade in 2022. We have
simplified import tariffs to lower costs for businesses and
households. We plan to remove over 50% of inherited EU
regulations by 2026. Our reforms to employment laws could save UK
businesses up to £1 billion a year, ensuring that the UK is the
best place in the world to start up and grow a business.
I thank my right hon. Friend for her reply. Measured by tonnage,
the port of Immingham in my constituency is the largest port in
the country, with almost 50 million tonnes of cargo each year. It
is also a vital part of the renewable energy sector. Immingham is
surely an example of the fact that not only EU trade but
worldwide trade is important to the UK. If my right hon. Friend
were able to visit at some time, she would be able to see that
for herself.
As ever, my hon. Friend is a great advocate for his Cleethorpes
constituency. He is right that Immingham is the No. 1 port in
terms of tonnage and is vital to our trade with the EU and the
rest of the world. If our diaries allow, I or one of my Ministers
will be delighted to visit and see at first hand the vital role
Immingham plays in the transition to renewable energy.
(East Renfrewshire)
(SNP)
In December, the British Chambers of Commerce found that a
staggering 97% of surveyed businesses continued to face
difficulties using the trade and co-operation agreement. Despite
the TCA being introduced over three years ago, businesses are
still struggling to deal with the added headache that the
regulations have created. If 97% of businesses still face
difficulties after three years, how many years is it anticipated
that it will take for these issues to be resolved?
I thank the hon. Lady for her question. Many of the issues that
businesses have been raising with us are specific not to the TCA
but to member countries. That is why Ministers and I, along with
officials, go to all these countries, and we have removed many of
the market access barriers, which are not specific to the TCA.
The hon. Lady will know that the TCA will be up for review. If
she has specific things she would like us to take to EU Trade
Commissioners, we are very happy to do so.
(Slough) (Lab)
This week, the Financial Times reported the most significant
decline in UK trade volumes since 1997. It is clearer than ever
that this Government’s hard Brexit policy has exacerbated
challenges for British businesses. With a 7.4% drop in trade
since 2018 and exports down by 12.4%, we are starkly lagging
behind our G7 peers. Can the Secretary of State explain how 14
years of Conservative rule have prepared British businesses for
their despair around extra red tape and the chaos unleashed by
this Tory hard Brexit policy?
I think the hon. Gentleman has just time-travelled from 2018 or
2019—it has been a long time since I have heard the phrase “hard
Brexit”. He will of course know that we left the European Union
with a deal, so he needs to catch up with what has actually
happened. It is also interesting that he talked about an FT
report from 1997; I should let him know that we have not been in
government since 1997—we have been in government since 2010. Many
of the things he is pointing out are things we have said will
occur as trade flows move away from the European Union to the
Indo-Pacific. That is why we have left; that is why we are
trading with the rest of the world. The hon. Gentleman should
also know that our economy is 80% services, so most of the things
he is talking about will not impact on the vast majority of the
economy. Services exports are booming, and we are doing well
since leaving the EU.
Free Trade Agreement Negotiations: South Korea
Sir (Maldon) (Con)
8. What recent progress she has made on negotiating a free trade
agreement with South Korea.(901854)
The Minister for Trade Policy ()
We have excellent relations with South Korea, as my right hon.
Friend will know as the Prime Minister’s trade envoy there.
Bilateral trade totalled £16 billion in the 12 months to
September 2023. Negotiations to upgrade our FTA with South Korea
were launched as part of President Yoon’s state visit in
November. Round 1 of the talks has already taken place, and round
2 will take place later this month here in London.
Sir
On Tuesday, in my capacity as trade envoy, I attended the Korean
embassy for the signing of a memorandum of understanding on the
joint development of a small modular nuclear reactor—just one
area in which the business between our two countries is growing
ever stronger. Will my right hon. Friend press ahead with the
enhanced free trade agreement, which will offer huge
opportunities to build on the existing £17 billion trade
relationship?
My right hon. Friend is absolutely right. In the UK, of course,
we have our own, superb Rolls-Royce model of small modular
reactor as well. He is right about the importance of our growing
trading relationship with Korea. As a former Secretary of State
for Culture, Media and Sport, he will also know that 71% of our
services trade with Korea last year was delivered digitally. We
need to upgrade the deal to make sure that it reflects modern,
digital trade as well. Both countries are making good progress in
the negotiations.
Trade with Zimbabwe
(Tewkesbury) (Con)
9. What steps she is taking to increase trade with Zimbabwe. [R]
(901855)
The Minister for Trade Policy ()
The Government were pleased that my hon. Friend, who is the Prime
Minister’s trade envoy to Angola, Zambia and Ethiopia, and
members of the Westminster Africa Business Group visited Zimbabwe
on the group’s inaugural trade mission. That is part of the
Government’s work to promote opportunities for UK companies,
particularly in critical minerals, renewable energy and
sustainable agriculture.
Mr Robertson
I am grateful to the Minister for that response. On my visit to
Zimbabwe in January, I met the President and a number of other
Ministers. They made it very clear that they wanted to draw a
line under the past, move forward and increase friendship—and,
indeed, trade links—with this country. What more can the
Government do to enlighten companies and businesses in the UK
about the many opportunities in Zimbabwe?
I thank my hon. Friend for his report and letter to me all about
that. I am pleased with the high-level meetings he had on his
recent visit and a lot of the media coverage. Our embassy is
following up by preparing for the Zimbabwe international trade
fair in April, and it is expecting a strong UK presence. My hon.
Friend’s return visit in April will be a perfect chance to
progress the deals that we have and boost British investment for
this year and beyond.
Trade Agreements: Environmental Protections
(Cambridge) (Lab)
10. What steps she is taking to ensure future trade agreements
include environmental protections. (901856)
The Minister for Trade Policy ()
The Government are committed to pursuing environmental provisions
in our trade agreements and to using our multilateral trade
policy, diplomatic efforts and trade promotion activity, all of
which support our green objectives.
The Government boast about the trade deals they have done and the
environmental protections they have secured, so presumably they
have had the chance to analyse the impact. Will the Minister tell
the House whether the deals secured so far have improved or
degraded our environment? What lessons have been learned for
negotiating future deals?
The hon. Gentleman raises an interesting point. Many of the
agreements have actually, for the first time, included
environmental provisions. If I recall correctly, he did not like
the Australia trade deal, but it is the first time Australia has
committed in a trade agreement to the Paris agreement and so on.
When it comes to the impact of our trading policy over the last
14 years, he will also find, for example, that 86% of UK imports
of palm oil—a key interest for environmentalists—are certified as
sustainable, up from 16% in 2010. Again, we are seeing real
results of UK trade policy moving in a much more environmentally
friendly direction.
Kinship Carers: Employment Leave
(Twickenham) (LD)
11. If she will make an assessment with the Secretary of State
for Education on the potential merits of introducing a right to
paid employment leave for kinship carers. (901858)
The Parliamentary Under-Secretary of State for Business and Trade
()
Some 130,000 children are in the care of close family members in
England alone. We recognise the vital role that kinship carers
play in looking after children who cannot live with their
parents. Last year, the Government published the national kinship
care strategy and announced a £20 million package of support for
kinship carers in 2024-25.
The Minister just referenced the Government’s kinship strategy,
which was published in December. Their own strategy has
recognised that kinship carers in employment often report the
need to give up work or reduce their hours to be able to care for
the children they support; it cites a survey revealing that 45%
of kinship carers give up work and a similar number have to
reduce their hours permanently. Given the Minister’s desire to
drive up employment and the fact that kinship carers stepping up
overnight to look after children saves the taxpayer a huge amount
of money in comparison with when children go into local authority
care, why are the Government not making paid employment leave a
statutory right and only publishing guidance?
The hon. Lady raises a very important point. We call on local
authorities to be considerate to people who are in employment
when they take on a child to look after in a kinship care
situation. We think that employers are the right people to make
sure that any provision we provide is a floor, not a ceiling.
Companies such as John Lewis take a very considerate approach to
people in that situation. We urge them to do so, but we also
encourage local authorities, which have budgets allocated to this
particular issue, to provide support where they can.
Infrastructure: Impact on Business Investment
(Warwick and Leamington)
(Lab)
12. If she will make an assessment of the potential impact of
infrastructure on levels of business investment. (901861)
(Blackley and Broughton)
(Lab)
13. If she will make an assessment of the potential impact of
infrastructure on levels of business investment. (901862)
The Minister for Industry and Economic Security ( )
High-quality infrastructure is crucial for delivering economic
growth. To quote a previous Prime Minister:
“You and I come by road and rail, but economists travel on
infrastructure.”
We know how important investment is. The whole House will agree
that the UK is the leading light when it comes to offshore wind
farms, where we are already securing investment.
Let me point to a few examples of further investment: Nissan is
investing £2 billion in new electric car models in the UK,
Microsoft and Google have announced data centres worth over £3
billion, and my Secretary of State oversaw the global investment
summit, unlocking £30 billion of investment. In fact, since 2010
we have secured more inward investment than any other country in
Europe. Over the last few years, we have received the third
highest amount in the world, after the United States and China. I
could go on, Mr Speaker, but I might test your patience.
That is all very well, but the Government’s decision to defer the
banning of petrol and diesel vehicles until 2035 has led to huge
uncertainty among consumers and investors, as the Minister well
knows. Compared with other countries, it seems that the
Government lack ambition when it comes to investment in electric
vehicle infrastructure. France, for example, will have something
like 400,000 installations by 2030—50% more than the UK. What
plans does the Minister have to ensure that the UK’s investment
keeps up with our competitors and meets the growing demand for
electric vehicles?
Ms Ghani
As the Minister for the auto sector, I am very keen to ensure
that we are breaking bad memes around the electric vehicle
sector. We are doing a huge amount of work in this space. At the
moment, we have 53,600 public charge points. We have a rapid
charging fund and a local electric vehicle infrastructure fund— I
am sure that the hon. Gentleman’s local authority will want to
tap into those. The Department for Transport is working with
local authorities to ensure that they have charging strategies.
We have a £381 million local EV infrastructure fund, which will
deliver tens of thousands more charging points and support for
on-street residential charge points, too. It is really important
that local authorities are aware of the funds available, and I
suggest that the hon. Gentleman get in touch with the DFT to
support the installation of charging points in his
constituency.
I do not think that any hon. or right hon. Member could disagree
in general terms with the Minister’s reply. It would have been a
more interesting reply if she had made an assessment of the
reduction in investment since the cancellation of High Speed 2,
because there is no doubt, as she said, that investment in rail
infrastructure leads to business investment all along the route.
We can see that in Birmingham and Manchester, and we can now see
the lack of new investment because of the cancellation. Was it
not a mistake to swap that investment, which would have led to
many new high-technology jobs, for money to replace what has been
taken from local government to fill potholes?
Ms Ghani
In my previous response, I wanted to expose the opportunities and
grants that are available to ensure that charging points are
criss-crossing the country. Often parliamentarians are not aware
of all the great work we are doing.
On HS2, just last week we announced the extra support that will
be made available for local transport plans, which cover
everything including rail, road and even buses and, of course,
potholes. Network Rail has received £36 billion from the
Government to improve transport in every region of the UK. Just
last week, we announced an extra £4.7 billion of additional
funding for local transport authorities in the north and
midlands. We want to make sure that decisions on transport are
made locally and that the infrastructure is needed and wanted by
local communities, which is why we are making sure that the funds
from HS2 are being made available.
Regulatory Costs: Small and Medium-sized Enterprises
(Edinburgh West) (LD)
14. If she will make an assessment of the potential impact of
regulatory costs on small and medium-sized enterprises.
(901864)
The Parliamentary Under-Secretary of State for Business and Trade
()
We are hacking through the red tape, not least with our smarter
regulation programme. We have announced reforms to employment law
and the recording requirements of the working time directive,
which will save UK businesses up to £1 billion, particularly
benefiting SMEs.
I note that the Minister welcomed yesterday’s Budget as helping
small businesses, particularly in the hospitality sector, which
is very hard hit in my constituency. One of the problems that
many businesses tell us about is the business rates system. More
businesses have failed in the past two and a half years than have
been established. In Scotland, we often find that while the
downsides of this Government’s policy are happily passed on by
the Scottish Government, any benefits are not. We would like to
see complete reform of the rating system—not tinkering but
reform. Can the Minister tell us whether widespread reform is
planned? How would he plan to do it? How could businesses in
Scotland also benefit?
The hon. Lady is absolutely right to point to some of the
difficulties in the hospitality sector. I speak to hospitality
entrepreneurs in my constituency and across the country who are
finding it difficult, which is why we stepped in with, first, a
package of about £13 billion of business rates support, and there
was £4.3 billion of business rates support last autumn. We passed
the equivalent moneys on to the Scottish Government to pass on to
their hospitality venues, but they passed on none of it.
A typical pub in Scotland is £15,000 worse off than a typical pub
in England, and a typical guest house is £30,000 worse off. That
is why Scotland has a 30% higher failure rate than England.
Similarly, a typical pub in Labour-run Wales is £6,000 worse off
and a typical guest house is £12,000 worse off, and there is a
19% higher failure rate. It is critical that the benefits are
passed on to those businesses, and that we look for structural
reform. Anyone who wants to scrap business rates needs to show
where the £22.5 billion of income will come from, rather than
simply saying that they will scrap them without announcing a
replacement.
National Minimum Wage Enforcement
(Bury South) (Lab)
15. What assessment she has made of the effectiveness of publicly
naming employers for the enforcement of the national minimum
wage. (901866)
The Parliamentary Under-Secretary of State for Business and Trade
()
Since 2011, we have published 20 press releases and named around
3,200 employers that have, in total, repaid over £41 million in
arrears to over 460,000 workers. We have recently had round 20 of
the scheme.
Naming and shaming serves as a deterrent, but should we not go
further against persistent offenders? Paying the minimum wage is
not an opt-out; it is a law that no company is above. Stronger
penalties, including fines proportionate to the severity of the
violation, to ensure that no employer can exploit its workers
with impunity, would level the balance between employers and
employees. Will the Minister commit to exploring these measures
to safeguard the rights and the dignity of workers?
The hon. Gentleman is right to point to this measure. We know
that naming and shaming is a significant deterrent against
underpayment of the national minimum wage, and we are very keen
to ensure that naming continues. Alas, in the most recent naming
and shaming round, 2,800 minimum wage investigations returned
more than £16.3 million in arrears to over 120,000 workers. His
Majesty’s Revenue and Customs issued businesses with nearly 700
fines, totalling £13.2 million. As the hon. Gentleman recognises,
naming and shaming alone is a significant deterrent and we intend
to continue doing it.
Mr Speaker
I call the shadow Minister.
(Ellesmere Port and Neston)
(Lab)
My hon. Friend the Member for Bury South () is right that too many
employers still think they can opt out of paying the minimum
wage. Earlier this week, the Low Pay Commission published its
2023 report, which said that non-compliance “appears persistent”
in the social care sector. I have heard a range of evidence
citing problems with record keeping, exploitation of migrant
workers, and workers routinely not being paid for travel
time.
It is clear that the social care sector has a real issue with the
minimum wage but, when browsing through the latest naming and
shaming list published by the Department a couple of week ago, I
found only 17 employers classed as being within the social care
sector, which is less than 0.1% of the total number of employers
in the sector. What will the Minister do to ensure that everyone
working in the social care sector gets at least the minimum
wage?
The hon. Gentleman is right to raise this issue, on which we do
much. For example, we make sure that people can anonymously
report the underpayment of the national living wage through
either His Majesty’s Revenue and Customs or ACAS. It is really
important that we do that. We have labour market enforcement
undertakings and orders, and we provide the tools for serious
cases. As of April 2022, 40 employers were on labour market
enforcement undertakings and 18 employers have been prosecuted.
The message should be loud and clear to employers that if they do
not comply with the law, we will take action.
Smart Data Road Map
(Weston-super-Mare) (Con)
17. When she plans to publish the smart data road map.
(901869)
The Parliamentary Under-Secretary of State for Business and Trade
()
My officials are co-ordinating and leading on the drafting of the
road map, which will set out the Government’s ambition for future
smart data scheme development across seven different sectors. We
will publish that very shortly.
I am delighted to hear that the road map is coming very shortly.
My hon. Friend will recall that I asked this question just before
Christmas and he said it would be out in January. We were then
hoping it might be coming out in yesterday’s otherwise excellent
Budget, but it did not. Other countries are coming up on the
rails and trying to overtake us. The noise of the approaching
herd is growing in our ears, so can we please move as fast as
possible on this?
My hon. Friend is right to hold our feet to the fire on this. We
are pressing forward and we are determined to get it right, not
just out quickly. He rightly said that I set the ambition to get
it out in January, and that has put officials’ feet to the fire
as well in getting it out. I signed off the road map yesterday,
so it should be out very shortly. I do not agree that other
nations are hot on our heels on this issue, as we are way ahead.
There are billions of calls in open banking every month, and
millions are using this every day without even knowing it. We are
going to extend those opportunities to energy, telecoms and,
crucially, small and medium-sized enterprise finance, making the
journey for SMEs to get business finance far easier.
Topical Questions
(Easington) (Lab)
T1. If she will make a statement on her departmental
responsibilities.(901870)
The Secretary of State for Business and Trade ()
Last week, I travelled to Abu Dhabi for the 13th World Trade
Organisation ministerial conference, where I met counterparts
from many countries, including Australia, New Zealand, Canada and
South Africa, along with trade representatives from the United
States, European Union and the Gulf Co-operation Council.
Alongside WTO members, we negotiated real outcomes for the UK and
important agreements with our trading partners. We delivered for
British business through the renewal of the e-commerce
moratorium, a global agreement to avoid taxes on online
transactions, from emails to movies and music. Building on the
momentum from the 13th ministerial conference, we will continue
to champion free, fair, open trade at every opportunity,
recognising its potential to lower costs and increase prosperity,
both here in the UK and around the world.
I thank the Minister for that statement.
We are no longer constrained by European competition law. The
German Government are providing at least €6 billion in support
for their steel industry. Given the very credible plan put
forward by my union, Unite the union, to protect jobs and expand
production at the steel plant at Port Talbot, why are the UK
Government not investing more to create a viable future for our
steel?
I am disappointed that the hon. Gentleman feels that we have not
been investing as much as we should. What we have done in Port
Talbot is the biggest investment that Government has ever made in
steel. We are turning Port Talbot around; it is going to be
regenerated. We are replacing high carbon emitting blast furnaces
with electric arc furnaces to help reduce emissions, which his
party and all of us across the House signed up to when we made
the commitment to net zero. He may have specific things he thinks
we can do on the transition, so I can tell him that we have a
transition board to help those whose jobs are not going to be
there with electric arc furnaces. However, we have done a
significant amount for Port Talbot.
Sir (Maldon) (Con)
T2. May I commend to my right hon. Friend the recent paper on
industrial policy by Policy Exchange and its conclusion that we
should avoid entering a subsidy race and should instead
concentrate on broad, long-term measures supporting investment
right across all industries?(901871)
The Minister for Industry and Economic Security ( )
I am grateful to my right hon. Friend for highlighting the Policy
Exchange report, and I agree that the UK should not enter a
subsidy race with other industrial nations. We already have our
advanced manufacturing plan, which, obviously, focuses on
advanced manufacturing, and the Chancellor is also looking at
green industries, life sciences, creative industries and digital
technology. Those are all areas in which we know we can grow as
well. I have spoken about the record levels of investment we get
into the UK. Last autumn, when the Chancellor announced full
expensing, more than 200 business leaders and the CBI said that
that was a game changer and the single most transformative thing
we could do to fire up the British economy. We will continue to
be competitive and ensure that we continue to be the third
country, after the USA and China, in securing inward
investment—of course, beating our European counterparts.
Mr Speaker
I call the shadow Secretary of State.
(Stalybridge and Hyde)
(Lab/Co-op)
Last month, the Secretary of State said at the Dispatch Box that
she could state explicitly that trade talks with Canada had not
broken down. However, the Canadian high commission has since
contradicted that in writing, saying that neither negotiations
nor technical discussions with respect to any of the outstanding
issues have occurred since the UK unilaterally broke them off on
25 January. Mr Speaker, I just want to know who is telling the
truth.
I am very happy to expand on what I said last time I was at the
Dispatch Box on this topic. I repeat that our engagement with
Canada on trade issues has been extensive across multiple
Departments covering the free trade agreement, cheese quotas and
rules of origin. On 25 January, the UK confirmed to Canada that
we would pause FTA talks on the basis that cheese access had been
removed and that Canada had signalled that rules of origin
provisions would not be extended. That is how negotiations
work.
I can tell the hon. Member that there was a meeting on 8 February
between the Foreign Secretary and his Canadian counterpart where
the cheese issue was discussed, and I raised cheese and rules of
origin directly with the Canadians in Abu Dhabi last week. I must
say to the hon. Member that chasing headlines based on things he
has been told by the people with whom we are negotiating is not
helpful to achieving the outcomes that our businesses, farmers
and auto industry want to see.
That was a lot of words for the Secretary of State to use to say
that she believes the Canadian high commission was correct in the
answer that it gave.
May I ask an important question about the proposed UK carbon
border adjustment mechanism? Labour very much supports the
introduction of a UK CBAM, but we are concerned that the
Government will do so a year after the EU, resulting in the UK
potentially being flooded with carbon-intensive products
originally destined for Europe, including steel, cement and
fertiliser. Do the Government recognise that danger? If they do,
what is their plan?
Just on the first point, if the hon. Member still wants to
believe Canada before the UK, that is his business, but we on the
Conservative Benches know who we are working for, and we are
working for British businesses.
On the hon. Member’s second point, carbon leakage is a global
problem facing all countries that are ambitious in tackling
climate change, and we are working with international partners on
how we tackle it together. We are following developments on the
EU CBAM closely, and we are engaging with the European Commission
to discuss technical considerations relevant to UK manufacturers.
We share its concerns on carbon leakage, but we need to make sure
that the UK response, whatever it is, is tailored to what the UK
needs, not just a copying and pasting of what others are
doing.
Mr Philip Hollobone (Kettering) (Con)
T4. Kettering is the beating heart of the east midlands economy,
so will the Secretary of State be kind enough to facilitate a
visit from her ministerial team to Ball Corporation in Burton
Latimer? It has the newest, largest and most modern aluminium can
manufacturing plant in Europe and a fantastic example of the very
best of successful foreign direct investment into the UK
economy.(901873)
I commend the Ball Corporation in Burton Latimer for all it is
doing. I also thank my hon. Friend for what he is doing to
promote inward investment, which supported more than 2,800 jobs
across the east midlands in 2023. He has spoken to me before
about the importance of the Ball Corporation to Kettering, and I
am happy to confirm that either myself or one of my Ministers
would be delighted to visit when diaries allow.
Mr Speaker
I call the SNP spokesperson.
(Gordon) (SNP)
While the UK Government struggle to support small and
medium-sized enterprises exporting to Europe, they are providing
a £600 million export guarantee to Ineos so
that it can build the largest chemical plant in Europe for 30
years in Antwerp, Belgium. Why can the UK Government find £600
million to support that investment, but not match the £500
million that the Scottish Government are investing in domestic
energy transition at home?
UK Export Finance does not give the money; it provides guarantees
to loans that are being provided by banks. There is quite a
significant distinction: we have not given that money; we have
guaranteed a loan. The reason why we provide those guarantees is
that they guarantee jobs to British businesses. There is a big
difference between a loan guarantee and giving money. If he would
like more of an explanation on that, we are happy to provide one
to him.
(Romford) (Con)
T5. As chair of the British-Switzerland all-party parliamentary
group, I am delighted to commend the Government on the
forthcoming new trade agreement with Switzerland, but will the
Secretary of State please update the House on progress?
Particularly, will she tell us which of the 20-plus working
groups the Government intend to prioritise as part of the
negotiations?(901874)
The Minister for Trade Policy ()
I thank my hon. Friend, who is a leading member of the
British-Switzerland APPG, for his interest. Both the Secretary of
State and I met the Swiss Trade Minister in Abu Dhabi last week.
The trade talks are progressing well. We are seeking
high-ambition outcomes in all areas, including services and
investment, mobility, digital, and the environment, which are not
covered by our existing FTA. In short, there are a large number
of high-priority areas for us, building on the agreement that we
did on financial services in Bern at the end of last year, to
ensure that this UK-Switzerland FTA really takes forward the
bilateral trade relationship. The fourth round of negotiations is
taking place in Bern this week.
(Battersea) (Lab)
T3. We know the impact that mandatory pay gap reporting can have
on tackling low pay and in-work poverty, but little progress is
being made on tackling the disability pay gap, which is higher
now than it was a decade ago, with disabled people earning on
average £3,400 less—effectively working for 47 days for free.
When will the Government introduce mandatory disability pay gap
reporting, and what steps is the Secretary of State taking to
close the gap?(901872)
The hon. Lady raises a significant issue around ensuring that
disabled people are able to access employment and are paid
properly. We have no plans to introduce mandatory disability pay
gap reporting—no plans to introduce disability pay gap reporting
at all. Unlike gender pay gap reporting, which is very simple,
binary and easy to execute, disability pay gap reporting, like
ethnicity pay gap reporting, is very complex. There are a range
of disabilities that could not be easily monitored, so I would
like to work with her on other areas where we can help to improve
the lives of disabled people at work. We do not believe that
disability pay gap reporting is the answer.
(Buckingham) (Con)
T6. [R] Israel is one of the United Kingdom’s most dynamic
trading partners, so does my right hon. Friend agree that
prioritising a free trade deal with Israel will complement the
good work that the Government are doing to defeat the haters as
part of the Economic Activity of Public Bodies (Overseas Matters)
Bill, and send an unmistakeable message that the UK stands ready
to strengthen our unbreakable friendship with Israel?(901875)
My hon. Friend is right. Israel’s current relationship with the
UK is worth about £6.4 billion, but our FTA is a roll-over of the
one that Israel signed in 1995 with the EU. It does not take into
account services, digital, artificial intelligence or genome
sequencing. There is a lot that we can do. That is why we are
working on this FTA. It is a priority for us. As I said earlier,
we face many challenges in carrying on negotiations with a
country that is at war, but we are working to overcome them.
(Twickenham) (LD)
T8. Quarter 4 of 2023 was the 10th quarter in a row in which more
British businesses closed their doors than opened up. Just
yesterday, a small business owner in Twickenham contacted me to
tell me that his business was on the brink. If the Secretary of
State will not consider business rate reform, as my hon. Friend
the Member for Edinburgh West () suggested, what is she
doing to help our small and medium-sized businesses, and to stem
the tide of insolvencies?(901878)
The Parliamentary Under-Secretary of State for Business and Trade
()
The hon. Lady raises an important point. We do not shy away from
the fact that things have been difficult for businesses, with the
covid crisis, of course, followed by the cost of doing business
crisis. That is why we stepped in to support businesses, with a
£4.3 billion package for rates last autumn, which has helped many
businesses to get through a difficult time. Unfortunately, that
support has not been passed on in Scotland and Wales, but it
certainly has in England. I am very happy to meet with her to
discuss her particular business problem.
(Tewkesbury) (Con)
T7. Because of its very large population and economic activity,
Nigeria offers many opportunities for British businesses. I
understand that there was a recent ministerial visit to that
country. Could we have a brief report of the outcome of that
visit?(901877)
My hon. Friend is right. I signed the enhanced trade and
investment partnership in Nigeria, alongside my counterpart, Dr
Doris Uzoka-Anite, on Tuesday 13 February this year. It was the
first of its kind in terms of the UK’s trade commitments across
the region. The partnership aims to remove market access barriers
and promote technical co-operation in areas such as financial and
professional services. The UK and Nigeria have co-created a
partnership that tackles issues that businesses face, and this is
the first step in a significant relationship and an already
strong trading partnership worth a total of £6.7 billion in the
12 months to September.
(Blaydon) (Lab)
T9. Last week, Carl Cresswell, director of business resilience in
the Department for Business and Trade, told the Select Committee
that he personally thinks that we will end up spending more money
on Horizon compensation overall than that £1 billion currently
allocated by the Treasury, but we did not hear anything about
that in yesterday’s Budget. Does the Secretary of State share
that view?(901879)
We have always been clear that the £1 billion is not a cap.
Clearly, the amount of compensation that needs to be paid for
redress is to get people back to where they were before the
scandal took place. At the moment, we are not nearing that £1
billion, but I think that over time we will be. As I say, it is
not a cap; if we need to raise the amount, we will.
(Harrow East) (Con)
I understand that another round of negotiations is about to start
in India on our long-promised trade deal. The original proposal
was to complete the trade deal by Diwali. This year, Diwali is on
1 November, so will the Secretary of State give us an update on
negotiations and agree that we should conclude the deal by 1
November?
I thank my hon. Friend for that question and for his continual
interest in us getting a high-quality trade deal with India, for
which he has long been a passionate advocate. Of course, the most
important thing is what is in the deal, rather than the date that
it is delivered. We remain in round 14 and we recently welcomed
Government of India negotiators to London. The prize remains
large—with tariffs as high as 150% for whisky and 125% for
autos—and we want to ensure that we get our key service sectors
able to export into a market of 1.4 billion people.
Mr Speaker
I call the Chair of the Business and Trade Committee.
(Birmingham, Hodge Hill)
(Lab)
The Secretary of State will have seen the recommendations that
our Committee set out this morning for ending the circus of the
Post Office administration of the redress schemes for victims of
the Horizon scandal. I know that she takes this incredibly
seriously and so I know that she will study our cross-party
recommendations for the new legislation that she is about to
bring before the House. The question for today is this: if we put
all the ongoing investigations to one side, on the basis of the
facts as they are known today, does she still have full
confidence in Nick Read as the chief executive of the Post Office
to run the redress schemes currently under way?
We thank the right hon. Gentleman for his work. I have taken a
quick look at the report, although it was only issued this
morning. All the recommendations he makes in that report we have
either fixed or are fixing with the assistance of the Horizon
compensation advisory board. We agree with him that we need to
bring the compensation schemes in house. The GLO—group litigation
order—scheme is already being delivered by the Department for
Business and Trade. We believe that further compensation will
flow from our overturning of convictions. We will be overturning
hundreds of convictions through legislation in this House very
shortly, as quickly as possible, and that will provide a flow of
hundreds of millions of pounds in compensation for those
individuals. That will be done by the Department for Business and
Trade.
(Cleethorpes) (Con)
As the trade envoy to the western Balkans, the issue of
Government-to-Government agreements is raised with me frequently.
There is no doubt that if they were available, more deals could
be done with the Balkan countries. Will the Minister give an
update on the Government’s position, please?
I thank my hon. Friend, in particular for his brilliant work as a
trade envoy. He covers more markets than any of our other trade
envoys with great skill and dexterity. Back in 2017, this
Department and I were pioneers in putting in place a G-to-G
agreement with Peru for the UK to be the delivery partner for the
2019 Pan American games. A great deal of business with and in
Peru has resulted since. We remain open to future G-to-G
agreements on a case-by-case basis. I am happy to meet him to
discuss what specific things he has in mind that would work in
the western Balkans.
(Aberavon) (Lab)
I have repeatedly asked Ministers whether any strings were
attached to the £500 million of taxpayers’ money that was given
to Tata Steel, particularly with regard to job guarantees. I have
not had a straight answer, so I will try again today. Can the
Secretary of State please confirm whether any conditionality was
attached to the £500 million, or did the Government simply buy
Tata Steel’s bluff about closure, and give it £500 million so
that we could make 2,800 people redundant?
Ms Ghani
The hon. Gentleman attends the transition board meetings, so he
knows that his question is not really relevant to what he is
trying to get to the bottom of. We provided £500 million to
ensure that steel making continues in Port Talbot. Tata made it
clear that it was uneconomic and unsustainable to continue with
steel making, so the support that we have given will ensure that
north of 5,000 jobs will continue in Port Talbot, and it will
support supply chains. On top of that, £100 million has been
provided to the transition board, so that its members, including
the hon. Gentleman, the unions and all the local representatives,
can ensure that local people who need to go through transition
get the support that they need. Without that support, there would
not be any future steel making at Port Talbot.
(Huddersfield)
(Lab/Co-op)
When will the Secretary of State wake up to the huge potential of
universities to tackle all the problems in society, including
climate change? Will she come to Huddersfield, which has one of
the best universities in the country? It is working with local
businesses to make the future safe for our country.
If the hon. Gentleman sent a proposal to my office about what we
could do on a visit to the University of Huddersfield, I would be
very keen to take a look. We support our universities. If he has
a specific business and trade angle in mind, we will see what we
can do, if diaries allow.
(Tiverton and Honiton)
(LD)
Mr Hussein from east Devon, whom I represent, has effectively
been robbed of £100,000, given that £40,000 of sub-standard
building work has to be levelled and destroyed. The Federation of
Master Builders has campaigned for a compulsory licence scheme
for construction companies. The Domestic Buildings Works
(Consumer Protection) Bill would outlaw cowboy builders, provide
compensation for consumers and ensure that reputable builders
were not undercut by unlicensed rogues. Will the Minister take a
fresh look at that Bill?
The hon. Gentleman raises an important point. Some of the most
frequent correspondence that I get from colleagues from across
the House relates to rogue builders. We are determined to ensure
that this does not happen to our constituents. We advise them to
use builders registered with TrustMark, which is a trusted
scheme, to ensure that work is done properly. I would be very
happy to meet him to discuss that potential legislation.
(East Renfrewshire)
(SNP)
Goldman Sachs has found that Brexit Britain has significantly
underperformed compared with other advanced economies; the result
is that UK GDP is 5% lower than it would have been had we not
left the European Union. Does the Secretary of State appreciate
that best way to grow the economy, boost business confidence and
reduce trade barriers is to rejoin to the EU?
I recommend to the hon. Lady the report produced by my Department
on 31 January about the benefits of Brexit. It explains exactly
what is happening with the UK economy. Claiming that GDP would
have been 5% higher when we are outperforming our G7 partners is
simply not credible. She wants to take us back to square one, but
that is exactly the reason why people need to stick with the
Conservative plan.
(Strangford) (DUP)
I am very encouraged by the Secretary of State’s comments about
the free trade deal with Israel. The UK is a friend of Israel,
and Israel is a friend of the UK, so what more can we do to
increase trade between us? More importantly—and very regionally
—how can the Secretary of State ensure that Northern Ireland is
very much part of that trade deal, so that companies in
Strangford and across Northern Ireland also feel the benefit?
The hon. Gentleman will remember that we had the Northern Ireland
investment summit, at which we talked about bringing more
investment into Northern Ireland. He will know that around 500
Israeli firms operate in the United Kingdom. That investment from
overseas is creating thousands of jobs in high-value sectors, and
a free trade agreement will help to increase the investment. That
will benefit businesses in Northern Ireland, too.
