Forced Labour: Product Ban
(Rutland and Melton)
(Con)
1. If she will introduce legislative proposals to ban products
from UK markets that are made with or transported using forced
labour.(902612)
The Parliamentary Under-Secretary of State for Business and Trade
()
The Government recognise the importance of ensuring that UK
businesses respect human rights throughout their operations. We
continue to keep this area under review and will work with our
international partners to understand the most effective ways of
tackling forced labour in supply chains.
I thank my hon. Friend for his answer. However, companies with
well-documented links to Uyghur slave labour are dumping their
goods here in the UK. That is because the United States has
introduced the Uyghur Forced Labour Prevention Act and the EU has
acted similarly. Last month, I, along with 43 Members of this
House and 32 human rights organisations, wrote a joint statement
calling for import controls on solar panels. Will the Minister
agree to meet me to discuss that and to finally bring forward
measures to clean up our supply chains?
The Government are clear that British businesses and solar
developers should not stand for receiving solar panels from
companies linked to forced labour. We have already taken steps to
address the issue through the Procurement Act 2023 and the Modern
Slavery Act 2015. In addition, the forthcoming UK solar road map
will outline a clear path to reaching our solar deployment
ambitions, including on energy security. I reassure my hon.
Friend that sustainable solar supply chains will form a central
chapter of that road map, and I would be happy to either arrange
or have a meeting with her.
Horizon: Northern Ireland Postmasters
(Strangford) (DUP)
2. What steps her Department is taking to support postmasters
affected by errors in the Horizon IT system in Northern
Ireland.(902613)
The Minister of State, Department for Business and Trade ()
On Monday, the House agreed a Government amendment to the Horizon
exoneration Bill—the Post Office (Horizon System) Offences
Bill—to include convictions in Northern Ireland. The Northern
Ireland Executive faced unique challenges in delivering their own
legislation in a timely manner. Including Northern Ireland in the
Bill ensures that postmasters there are not left behind, and
receive exoneration and access to compensation on a UK-wide
basis.
First, let me put on record my thanks to the Minister, who has
been an industrious, assiduous and great champion for the
postmasters and postmistresses across this United Kingdom. There
is not a person in the House who does not have great respect for
him.
Further to Monday's business in the House regarding that Northern
Ireland provision in the Horizon Bill, which was brought forward
by my hon. Friend the Member for North Antrim () and my right hon. Friend the Member for East Antrim
(), will the Minister outline a
timeline so that postmasters and postmistresses across all of
Northern Ireland can see an end to the reputational and financial
damage, and the heartache caused by the disgraceful operation of
the Horizon scheme?
I thank the hon. Gentleman for his kinds words. It is always a
pleasure to work with him and his colleagues. It is our intention
that the legislation will clear both Houses by July, although
obviously not all of these things are within our gift. Should
that be the case, as we fully expect it to be, the convictions
will be quashed in July and compensation redress will be paid
from August.
Export Target
Sir (New Forest West) (Con)
3. What progress she has made on helping businesses to reach her
target level of exports.(902614)
(Harrogate and Knaresborough)
(Con)
12. What progress she has made on supporting businesses to reach
£1 trillion in annual exports.(902625)
The Secretary of State for Business and Trade ()
UK exports were £862 billion in the 12 months to February. UK
services exports reached a record £472 billion in the same
period, which is an increase of 10%—they went up by £42 billion.
Businesses, including small and medium-sized enterprises, can
access my Department's wealth of export support at great.gov.uk.
That support includes the UK Export Academy, which has had more
than 18,000 registrations; our 160 international trade advisers,
who help about 6,000 SMEs each year; and 388 export champions,
across every part of the UK.
Sir
Are we really the fourth largest exporter in the world?
I am pleased to tell my right hon. Friend that we are. There are
many, many more good statistics, which he will find in the
publication my Department produced at the end of January; it
contains further good news stories on UK exports. The UK is a
global exporting superpower and the world's second biggest
services exporter. Services exports to the European Union are at
a record high and have increased by 36% since 2018.
My right hon. Friend has just detailed very encouraging data,
much of which results from the hard work of SMEs. Will she give a
bit more information about what support is available specifically
to SMEs to help them grow and export more of their products and
services?
The Department has declared this year the year of the SME. People
often hear news that sounds as though it is just about big
business, but SMEs employ most of the people in the UK. We have a
network of 160 international trade advisers and our export
support services. We have also put in place schemes such as a
Help to Grow management course, which 5,290 participants had
completed by November. We also have a business support service,
which provides support to about 30,000 people in England every
year.
(Merthyr Tydfil and Rhymney)
(Lab)
Further to those comments about SMEs, in the light of the
termination of the trade show access programme, which supported
SMEs in gaining international market exposure, what is the
Government's strategy to provide equivalent or enhanced support
to ensure UK food products remain competitive within EU
markets?
We know that a lot of people are disappointed that we closed the
trade show programme, but it was a pilot programme and it did not
yield the business successes that we had hoped. We are investing
in those things that are providing success and demonstrating real
benefits. The UK Export Academy is one of them, along with the
export support service, as I mentioned, and the international
trade advisers. Many of them will have expertise in food and
drink. If the hon. Gentleman writes to us with a specific case,
we will be happy to help.
Mr Speaker
I call the shadow Minister.
(Harrow West) (Lab/Co-op)
Unfortunately for Government Members, and more importantly for
the country, the Office for Budget Responsibility's recent
figures, which I know the Secretary of State struggles with, show
that exports have dropped on her watch and are set to have
declined again this year. If she has a moment to spare from her
leadership campaign, she might read the landmark report published
by Aston University last week on the significant boost for
British exports that a veterinary agreement could deliver through
British farmers and the agrifood industry. Why will she not
pursue an agreement that is so obviously in Britain's national
interest?
The OBR puts out lots of figures and the Opposition cherry-pick
the ones they think will be most helpful, thinking that we have
not done our homework. I encourage the hon. Member to look at the
OBR forecasts for growth for this country, which are very high,
and I ask him which specific period he is referring to. He should
look at what has happened to exports overall, not just periods
including covid, which explain why we have had some drops in food
exports.
I asked the Secretary of State about the veterinary agreement; I
suspect no one on the Opposition Benches will be surprised that
she has not shown any interest in a trade agreement that would
help British farmers. According to the House of Commons Library,
under the last Labour Government exports rose by 55%, but since
then exports have risen by only 32%. Is the truth not that
British exporters always do better under a Labour Government?
That is absolute rubbish. It is not true. The veterinary
agreement that he is talking about would create dynamic alignment
with the EU, which is not what this country voted for in 2016. We
are delivering what the people voted for. Yes, there will be
difficulties—we are sorting them out. It is time that the
Opposition moved on and accepted the will of the people.
South Korea: FTA Negotiations
Sir (Maldon) (Con)
5. What recent progress her Department has made on negotiating a
free trade agreement with South Korea.(902616)
The Minister for Trade Policy ()
I thank my right hon. Friend for the valuable work he is doing as
the Prime Minister's trade envoy to the Republic of Korea. I look
forward to his upcoming visit there. He is famous for his timely
interventions. Detailed round 2 discussions on an upgraded FTA
took place in London from 18 to 22 March, which provided an
opportunity to conclude the exploratory phase of negotiations. We
now look forward to text-based negotiations in round 3, which is
due to take place in Seoul from 24 June.
Sir
I thank my right hon. Friend for his answer ahead of my visit to
Korea next week. Does he agree that the Indo-Pacific region
offers huge opportunities for global growth, particularly as it
will be home to something like half the world's middle-class
consumers over the coming decades, and therefore that upgrading
this agreement is likely to bring huge benefits to the UK?
My right hon. Friend is absolutely right. The Indo-Pacific is a
vital part of the world for the UK and forms the centrepiece of
our strategy going forward diplomatically and on trading ties. He
is right that the Republic of Korea will play a vital role in
that. The recently signed Downing Street accord with Korea
outlines the breadth and depth of the ongoing relationship. We
look forward to the comprehensive and progressive agreement for
trans-Pacific partnership coming into effect later this year, and
we look forward to seeing if the Republic of Korea will
apply.
(Cardiff West) (Lab)
I am sure the right hon. Member for Maldon (Sir ) does a very effective
job in South Korea. I visited myself with the Digital, Culture,
Media and Sport Committee a couple of years ago and saw those
opportunities. However, there is some concern about transparency
around the use of trade envoys. Will the Minister confirm to the
House that under this Government no trade envoy has ever demanded
and been given the use of a house for their exclusive use?
The hon. Gentleman has slightly jumped the gun, as the next
question on the Order Paper relates to trade envoys. May I say
how proud we are of the cross-party trade envoy programme, which
I think he will hear about in a moment? We think they do an
excellent, good value-for-money job for the United Kingdom in
promoting trade in a number of key markets.
Parliamentary Trade Envoys
Sir (Rhondda) (Lab)
6. What the travel costs of parliamentary trade envoys were in
each of the last three years.(902617)
The Minister for Trade Policy ()
The Prime Minister's trade envoys provide invaluable support in
progressing the UK's trade and investment agenda in 61 markets
across the world. The travel costs incurred by the Prime
Minister's trade envoys were: £63,566 for the financial year
2021-22; £226,014 for 2022-23; and £232,325 for 2023-24. These
costs were for flights, for accommodation when the official
British residence was unavailable and for other sundry
expenses.
Sir
There is a great deal of murkiness about the trade envoys. I note
that, in answer to my hon. Friend the Member for Cardiff West
(), the Minister point blank
refused to deny that at least one trade envoy has explicitly
asked for the exclusive use of a house while acting as a trade
envoy. The Minister has point blank refused to publish the
breakdown of all the trade envoys and their costs for absolutely
spurious reasons. If a Select Committee visits South Korea, for
instance, all the details of the costs are published, but not if
a trade envoy goes. How can we possibly judge whether the
£750,000 that has been spent so far in the past three years has
been well spent? Is there any accountability whatsoever, or is
this really just a means of providing sinecures for people who
are liked in Government?
Well, there is a lot of bluster there and not a few accusations.
The hon. Gentleman may wish to try to stack these things up a
bit. It is a cross-party programme, not a Government-only
programme. Many Labour MPs, Labour peers and others are members
of the programme. Gifts and hospitality are already published in
departmental registers. If I may say so, Mr Speaker, two
qualifications for this cross-party role are diplomacy and
discretion, which might explain why not everybody has been asked
to do it.
Scottish Products: Overseas Promotion
(Kirkcaldy and Cowdenbeath)
(Alba)
7. What recent discussions she has had with the Scottish
Government on the promotion of Scottish products in overseas
markets.(902619)
The Secretary of State for Business and Trade ()
My Department works closely with the Scottish Government and
their agencies to promote Scottish products in overseas markets.
We have recently delivered our Made in Scotland, Sold to the
World exporter roadshow in Glasgow. On top of that, I am pleased
to say that the PG Paper Company, a brilliant Scottish business,
has just received an award in this year's Made in the UK, Sold to
the World awards.
The value of Scotland's oil exports to the EU reached £9.4
billion in 2023, with total oil exports up 14.7%, so the value of
oil as an export commodity cannot be overstated. Those billions
of pounds in exports can be balanced against the modest £80
million investment that would increase Grangemouth's
profitability threefold, secure its long-term future and save
Grangemouth from closure. Does the Secretary of State accept that
it would be absurd for Scotland to be the only major
oil-producing nation without a refinery capacity, and will she
agree to meet me to discuss this matter further, given that the
Scottish Government are otherwise occupied?
The hon. Gentleman is right to raise this issue. It is something
that we are concerned about and the UK and Scottish Governments
are working together to understand all the options for the future
of the refinery, and working closely on the issue through forums
such as the Grangemouth Future Industry Board. I am very happy to
meet him—as are other Ministers—to discuss this matter
further.
(Dumfriesshire, Clydesdale
and Tweeddale) (Con)
Does the Secretary of State agree that, while there has been
great progress in promoting and increasing the export of
traditional Scottish products, such as whisky, we also need to
support new businesses, such as one in South Lanarkshire that is
keen to expand electronic vehicle infrastructure into the United
States?
Yes, my right hon. Friend is quite right: our exports need to be
about the future, not just about the traditional industries, such
as Scottish whisky, which are the pride of Scotland and of the
UK. Electric vehicles are one way that we will hit our net zero
target, and this is an area that the Department for Energy
Security and Net Zero is focused on and that I support in
Business and Trade. If there is anything specific that we can
look into for his constituency, we would be very happy to
help.
Steel Supply Chain Jobs
(Aberavon) (Lab)
8. What steps she is taking to support jobs in steel supply
chains.(902620)
The Parliamentary Under-Secretary of State for Business and Trade
()
The UK Government's £500 million grant will safeguard steelmaking
in Port Talbot, 5,000 jobs in the company and thousands more in
supply chains across the UK that would otherwise have been under
serious threat. The transition board, with a further £100 million
of funding—£80 million from the UK Government and £20 million
from Tata—will also support those affected. That funding will
help supply chain businesses to strengthen and diversify their
customer base, creating sustainable jobs and business
opportunities in Port Talbot and the wider region.
When it is finally introduced, the carbon border adjustment
mechanism will provide a vital tool to ensure that British
steelworkers have a level playing field so that they can compete
against heavily polluting steel industries in other parts of the
world, but recent media reports have indicated that India is
lobbying No. 10 for an exemption from the UK CBAM. Does the
Minister recognise that CBAMs work only if they are comprehensive
across all countries and sectors, and if we start giving
exemptions here or there the entire policy will unravel? That is
particularly important given that Tata's plan for Port Talbot is
based on importing millions of tonnes of semi-finished product
steel from India, a country that produces its steel with
significantly higher carbon intensity. Will the Minister confirm
that under no circumstances will India be given an exemption from
the UK carbon border adjustment mechanism? A yes or no answer
will suffice.
I was pleased to visit the hon. Gentleman's constituency as part
of my first round of visits in this new role. I look forward to
meeting him again later this month. He is right that the
Government are committed to ensuring that UK decarbonisation
efforts lead to a true reduction in global emissions. The CBAM
policy is still being designed. The consultation is ongoing, and
I recommend that he contributes to it.
(Scunthorpe) (Con)
Residents in Scunthorpe are particularly concerned about steel
supply chain jobs related to virgin steelmaking. My hon. Friend's
predecessor, my hon. Friend the Member for Wealden (Ms Ghani),
was very clear from the Dispatch Box that we obviously need a
place for virgin steelmaking in the UK, and that that place is
Scunthorpe. Will he confirm that he agrees with her, and that
nothing is off the table in his negotiations with British
Steel?
I was pleased to visit my hon. Friend's constituency to meet
steelworkers and British Steel management during my visits last
month. I know that she is a passionate and dedicated champion for
her community and for steelworkers there. I look forward to
meeting her again next week ahead of the visit of the Secretary
of State to her constituency, and to discussing these matters and
others.
Mr Speaker
I call the shadow Minister.
(Croydon Central) (Lab)
No commitment to virgin steel from the Minister, then—what a
shame. I welcome him to his place, and note that he visited Port
Talbot steelworks last week, but he failed to meet any actual
steelworkers of course. Instead of avoiding discussing the
Government's plans for £500 million of taxpayers' money for the
loss of nearly 3,000 jobs, will he please commit to meeting some
Port Talbot steelworkers, and will he publish his economic
assessment of the impact of the UK losing its capacity to make
virgin steel—or is his actual plan to just keep his head down
until the Prime Minister finally has the guts to call a general
election and leave all these problems piling up for somebody
else?
This Conservative Government have given more support to the steel
sector than any Government before us. When I went to Port Talbot,
I was pleased to meet steelworkers, and I will continue to do so.
I also sit on the transition board. I will continue to support
steel in south Wales and all the opportunities that the sector
will bring.
Caribbean Community: Trade
(Shrewsbury and Atcham)
(Con)
9. What recent progress she has made on increasing levels of
trade with Caribbean Community member states.(902621)
The Minister for Trade Policy ()
My hon. Friend is a great champion of international trade, as the
Prime Minister's trade envoy for Mongolia. He will be pleased to
know that annual trade between the UK and the Caribbean economic
community, CARICOM, in 2023 was £5.1 billion—up 11% in current
prices on the previous year. In December 2023, I represented the
UK at the inaugural joint council of our economic partnership
agreement, where I met representatives of CARICOM and the
Dominican Republic, collectively known as CARIFORUM, underlining
the importance of our trading relationship and exploring
opportunities to further boost trade.
I speak as the chairman of the all-party parliamentary groups on
St Kitts and Nevis, Guyana and the Caribbean. It is an extremely
important region for the United Kingdom, one of the largest
concentrations of British overseas territories and Commonwealth
nations in the world, with historic links with the United
Kingdom, but the copy-and-paste trade deals that we have with
them, carried over from the European Union, are not sufficient.
We need a more tailor-made, specific trade agreement between the
United Kingdom and the Caribbean Community to ensure that some of
those protectionist measures that the European Union imposed on
our CARICOM friends can be rescinded. When will that happen?
I thank my hon. Friend for his engagement in the region, in St
Kitts, the Caribbean as a whole and Guyana, which remains in all
our minds at the moment given the situation on its borders. He is
right to highlight the CARIFORUM trade deal; it is a deal that
the UK values, and I mentioned that we have had the inaugural
meeting of the body designed to ensure that the deal has good
effects on our trade with the Caribbean. I might suggest
arranging a meeting between my hon. Friend and the trade
commissioner Jonathan Knott, who I am sure would be delighted to
meet him to discuss Caribbean trade possibilities still
further.
Small Businesses: Non-financial Reporting Requirements
(Aylesbury) (Con)
10. What steps her Department is taking to reduce non-financial
reporting requirements for small businesses. (902622)
The Minister of State, Department for Business and Trade ()
I thank my hon. Friend for his question and for his work as one
of our trade envoys to the Kingdom of Morocco—I know he is a true
diplomat and the soul of discretion. We recently announced that
we were raising the monetary thresholds that determine company
size, reducing burdens on smaller businesses and removing
low-value and overlapping reporting requirements. Around 13,000
medium-sized companies will be reclassified as small companies,
and 100,000 small companies will be reclassified as
micro-companies. This will save small and medium-sized companies
around £145 million a year.
I visit many small businesses in my Aylesbury constituency, and I
am always incredibly impressed by their spirit of
entrepreneurship and the huge effort and hard work that they put
in to succeed. They want to be able to devote as much of their
skill and time as possible to finding new customers, selling more
of their products and creating jobs, not to bureaucracy, admin
and onerous regulation. As the true party of business, our
Government have already made great progress supporting business,
as the Minister has just outlined, but what more can his
Department do to help the small and micro-firms that are the
engine of our economy?
My hon. Friend is a real champion of small business, and we meet
often talk about these matters. This Government's policies have
pushed the UK to third place in the OECD rankings for
start-ups—third out of 39 countries—and we have a suite of
programmes to help small businesses. Most importantly, we offer
access to finance, with our Start-Up Loans Company, growth
guarantee scheme and equity investment schemes, the seed
enterprise investment scheme and the enterprise investment
scheme. We offer supportive advice through our Help to Grow
management suite, including our newly launched “Help to Grow:
Management Essentials” course, which is two hours' free online
training for small businesses. We are also removing barriers
through non-financial reporting. As well as the monetary size
thresholds, we are consulting on increasing the employee size
thresholds from 250 employees for a medium-sized company to 500,
which will save medium-sized companies a further £150 million a
year.
Mr Speaker
I call the shadow Minister.
Mr (Slough) (Lab)
Alongside the despair and financial pressures faced by small
businesses, the British Poultry Council recently reported that
unreciprocated EU border checks have unfairly saddled UK
exporters with £55 million a year in extra costs, while their EU
counterparts pay absolutely nothing. Does the Minister agree that
this Government's failure to negotiate a fair sanitary and
phytosanitary agreement with the EU has directly undermined
British businesses and exposed our exporters to severe
competitive disadvantages?
I am surprised that the hon. Gentleman's question is put that
way. We are trying to make sure that we have a fair and level
playing field for UK exporters and EU exporters. Of course we
need checks on the borders on that basis—it would not be fair to
UK producers if that was not the case—but what he is pushing for
in a sanitary and phytosanitary agreement is what his hon. Friend
the hon. Member for Harrow West () was pushing for: dynamic
alignment with the EU, which would lock us into EU rules
permanently. We do not believe in that. We believe we have a
bright future outside the European Union. He would lock us back
into the customs union and the single market.
Manufacturing Sector
Dr (Bridgend) (Con)
11. What recent assessment she has made of the contribution of
the manufacturing sector to the economy. (902623)
The Parliamentary Under-Secretary of State for Business and Trade
()
The UK is a global hub for advanced manufacturing, and according
to the OECD, the UK's manufacturing sector has had the fastest
growth in the G7 since 2010. The importance of the sector was
highlighted in the Manufacturing Technologies Association's
recent “The true impact of UK manufacturing” report.
Manufacturing contributed £217 billion gross value added to the
UK economy in 2023, and plays an outsized role in the key drivers
of growth, including by accounting for over 40% of UK
exports.
Dr Wallis
The UK leads the way in areas such as artificial intelligence,
robotics and the internet of things, which are important for our
future, especially in manufacturing. How is that strengthening
British businesses and the British economy?
It is well known across the House that my hon. Friend is a strong
champion for manufacturing and advanced technologies. The
Government are also strongly committed to supporting research and
development and innovation, because they contribute significantly
to our economic growth. In particular, industrial technologies
such as robotics and AI are supporting manufacturing businesses
to be more productive and sustainable. That is why the Government
have increased R&D investment to £20 billion a year, and are
expanding Made Smarter, our highly successful industrial
digitisation programme for small and medium-sized
enterprises.
(North West Leicestershire)
(Ind)
Mainly because of this House's worship of the false idol of net
zero, electricity costs to businesses in the UK are four and a
half times higher than those in China and three times higher than
those in India. Can the Minister explain how manufacturing
businesses in the UK can compete with that on world markets?
I hope that the hon. Gentleman will join me in welcoming the
introduction of the British industry supercharger, which reduces
electricity costs for major energy-intensive industries. I hope
that it will benefit businesses in his constituency and across
the country.
Mr Speaker
I call the SNP spokesperson.
(Gordon) (SNP)
A key sector of the manufacturing economy is the plastics
industry, which employs 155,000 people and has an annual turnover
of £28.7 billion. In July 2023, the UK Government began a
consultation on the plastic packaging tax and the methodology
behind it. In February, some 14 organisations signed a joint
letter to the Government urging the swift publication of that
consultation. When exactly do the Government expect to be able to
respond to that long-overdue consultation?
The hon. Gentleman is right: the UK plastics industry is highly
important and contributed £8.2 billion to the economy last year.
I am aware of the consultation, which is led by the Treasury, and
I will ensure that he gets a reply.
United States: Trade
(Buckingham) (Con)
13. What recent progress she has made on increasing levels of
trade with the United States. (902627)
The Secretary of State for Business and Trade ()
Over the past two years, UK-US trade has grown 35% from £230
billion to £311 billion, while shared investment between our two
nations now totals over £1.1 trillion. In March, following the
excellent work of our trade envoy, my right hon. Friend the
Member for Bournemouth West (Sir ), I signed a state-level
arrangement with Texas. That means that UK businesses now have
memorandums of understanding with eight US states with a combined
GDP equivalent to a quarter of the whole US economy.
I am delighted to report that US motorsport giant Andretti has
shown a massive vote of confidence in the UK by taking 40,000
square feet of facilities in Buckinghamshire, with another 70,000
square feet on order, and is already employing over 100 people
locally in high-tech jobs. That clearly opens up huge
opportunities for automotive and motorsport supply-chain
businesses on both sides of the pond, including General Motors.
Will my right hon. Friend join me in welcoming Andretti to the UK
in its bid to get on to the Formula 1 grid, and what more can she
do to ensure that automotive and motorsport supply chains can
operate on both sides of the Atlantic?
I was delighted to see my hon. Friend visit the opening of
Andretti Global's new facility in Silverstone last month. I wish
it luck as it continues its preparations to enter Formula 1. That
investment is another vote of confidence in the world-leading
innovation that the UK has to offer. Andretti Global will also
specifically benefit from the MOU that we have signed with
Indiana, which will enhance our trade relationship in key areas,
including advanced manufacturing.
Wine: Pint Measures
(Glasgow North) (SNP)
14. Whether UK wine companies have sought advice from her
Department on preparations for producing wine in pint measures
under the Weights and Measures (Intoxicating Liquor) (Amendment)
Regulations 2024. (902628)
The Minister of State, Department for Business and Trade ()
The 568 ml pint quantity is one of several changes to pre-packed
wine sizes that are expected to come into force on 19 September
2024, supporting the thriving UK wine sector by providing
opportunities for innovation and greater choice. In light of
those changes, Wine GB—which represents producers—said:
“We welcome the chance to be able to harmonise still and
sparkling bottle sizes and we are happy to raise a glass to the
greater choice that allows UK producers for domestic sales.”
That answer is nowhere near as definitive as the press release
that the Minister's Department put out on 27 December last
year—which is still on the Government website—with the
headline
“‘Pints' of wine stocked on Britain's shelves for the first time
ever”.
That headline did not say “will be stocked”, “might be stocked”
“could be stocked”, or “to be stocked”; it implied that pints of
wine were, and are, available to buy right now in shops across
the UK. Will the Government admit that the reality is that there
has been little to no demand for, or interest in, that supposedly
glorious Brexit benefit, and that in fact it is entirely possible
that pints of wine will never be stocked on UK shelves?
It is never difficult to distinguish the hon. Gentleman from a
ray of sunshine, is it? Our wine industry is thriving, with over
900 vineyards across Great Britain. The UK wine industry produced
12.2 million bottles of wine in 2022, and our new post-Brexit
powers provide us with new options. Those include new legislation
that aligns existing sizes across still and sparking pre-packed
wine so that both can be sold in 200 ml and 500 ml quantities,
for which we know there is good demand.
New Zealand FTA: Environment
(Bath) (LD)
16. Whether she has made an assessment of the potential impact of
New Zealand's proposed Fast-track Approvals Bill on its
obligations under the UK-New Zealand free trade agreement
environment chapter. (902634)
The Minister for Trade Policy ()
In March, the UK and New Zealand highlighted the importance of
our environmental commitments at the first ever environment
committee under our new free trade agreement. We continue to
engage with New Zealand on implementing the environmental
chapter, and will monitor the proposed Bill that the hon. Lady
mentioned during its passage through New Zealand's
Parliament.
The New Zealand FTA entered into force on 31 May 2023. It
contains a commitment in article 22 that each party will not
“waive or otherwise derogate from, or offer to waive or otherwise
derogate from, its environmental laws in a manner that weakens or
reduces the protection afforded in that law”.
Is there not a danger that the fast-track approvals will erode
those protections? What steps will the Government take to ensure
that New Zealand absolutely upholds its commitments under the
FTA?
As I said, we will continue to monitor the passage of that
proposed legislation, but the hon. Lady must recognise that the
UK and New Zealand are incredibly like-minded in these areas—on
climate, the environment and clean growth. The environment
chapter in our free trade agreement is one of the most ambitious
in any FTA anywhere in the world. It breaks new ground for both
the UK and New Zealand in supporting our shared climate and
environmental goals, clean growth, and the transition to a net
zero economy.
Topical Questions
(Glasgow North) (SNP)
T1. If she will make a statement on her departmental
responsibilities.(902639)
The Secretary of State for Business and Trade ()
Post Office governance is a priority for the Government, and I
have said many times that it is vital that we have the right
people leading that organisation. I am therefore pleased to tell
the House that, on Wednesday, I announced the appointment of
Nigel Railton as its interim chair. Having previously been chief
executive of Camelot, Nigel brings a wealth of experience of
transforming organisations, and I am confident that he is the
right person to lead the Post Office through this period. Nigel
Railton will take up his post as soon as possible, and will be
invited to give Ministers his views on the future direction of
the Post Office in due course.
When will the Government admit that their Brexit dream of people
quaffing pints of wine and invoking the spirit of Churchill was
always a fantasy, and that the reality is, in fact, a Brexit
nightmare of border checks, reduced consumer choice and business
closures?
It is nonsense to say that this reduces consumer choice; it
actually increases consumer choice. I cannot imagine why anyone
would be complaining about the sale of pints of wine. If the hon.
Gentleman does not like them, he does not have to buy them.
Dr Thérèse Coffey (Suffolk Coastal) (Con)
T4. I know that my right hon. and hon. Friends in the Department
have been looking into the closure of Kelsale post office, an
outreach service in my constituency. Very recently, we voted
through more money to subsidise the Post Office, including £50
million for rural branches. Will my right hon. Friend the
Secretary of State make sure that that money is allocated? I know
that the Post Office is trying to cut costs, but that should not
be at the expense of customers in Kelsale.(902643)
The Minister of State, Department for Business and Trade ()
I thank my right hon. Friend for her work on this, and she raised
this important matter with me at meetings last month. We allocate
£50 million for the uncommercial part of the network, and part of
that should help the services in her constituency. I know she is
disappointed at the closure of the outreach service in Kelsale,
but there is an alternative permanent post office branch in
Saxmundham, 1.3 miles away. I am happy to continue the
conversation between her and the post office to make sure that
she gets the services she needs in her constituency.
Mr Speaker
I call the shadow Minister.
(Bethnal Green and Bow)
(Lab)
Shoplifting cost UK retailers £1.8 billion in 2023, the highest
figure on record. The Government's £200 shoplifting threshold has
effectively decriminalised this offence, which is costing
businesses dear. What discussions has the Minister had with the
Home Secretary about scrapping it, as Labour plans to do, so
retailers and customers are protected and high street businesses
can thrive?
It is not true to say that we have decriminalised thefts under
£200. The hon. lady needs to speak to police officers and her
local chief constable to make sure she understands how this
works. I have worked very closely with the Home Office and the
Policing Minister to make sure we have a retail crime action
plan, which includes a vexatious offence with more severe
sentences for people who assault shop workers. We have got an
action plan together and it is working well with retailers, and I
am very keen to see her support that plan.
Well, it is not working, and the Minister and the Secretary of
State should take this seriously, because it is damaging our high
streets and causing huge concern up and down the country. He and
the Secretary of State should go and meet those businesses, and
hear from them directly.
Turning to another issue, we have seen 14 years of Conservative
under-investment in public infrastructure, a failure to provide
certainty and a failure to get a grip on the economy. Business
investment has also suffered. Had it matched the average
investment levels of France, Germany and the US, our GDP would be
nearly 4% higher today, and wages would have been boosted by
£1,250 a year. Can the Secretary of State outline how she plans
to fix this crippling investment gap, and what will she do to
make sure businesses get the support they need so that we can get
the economic growth this country desperately needs after 14 years
of under-investment?
I remember a time when Labour Members were telling everyone that
we should not invest in nuclear, and it is under this
Conservative Government that we are investing in nuclear
infrastructure. That has only happened under Conservative
Governments. The hon. Lady asks about the plan. I would remind
her about the global investment summit we had in November, which
raised nearly £30 billion in one day. No one is better than our
current Prime Minister at delivering inward investment for this
country. Business investment is rising, and it is rising because
of the policies that he and the Chancellor have put in place,
such as capital expensing.
(Buckingham) (Con)
T5. Yesterday, I was pleased to meet a number of UK aerospace
businesses demonstrating and showcasing extraordinary innovation
right here in the United Kingdom, including Safran, which has a
significant base in Pitstone in my constituency. Can I ask my
hon. Friend what the Department has done to ensure that we can
increase aerospace exports?(902644)
The Parliamentary Under-Secretary of State for Business and Trade
()
I thank my hon. Friend, who I know is a strong champion of
aerospace exports in this House. Last year's autumn statement
extended the aerospace technology programme budget by a further
five years, with an additional £975 million of new R&D
funding from 2025 through to 2030. As part of this vote of
confidence in the UK civil space sector, our trade missions and
trade promotion activities by my Department and our embassies
around the world continue to help companies with export contracts
worth millions of pounds.
Mr Speaker
I call the SNP spokesperson.
(Gordon) (SNP)
In 2017, claimed the UK was “first in
line” for a post-Brexit trade deal with the United States. While
negotiations opened in May 2020, no progress has been made since
October of that year. When does the Secretary of State expect to
be able to deliver this alleged Brexit benefit, and what does she
think will arrive first—a trade deal with the US or pints of
champagne to toast it with?
As everyone on the Government Benches knows, even if we had a
trade deal with the US, the hon. Member would be standing there
telling us how he would be voting against it. The fact of the
matter is that the US is not carrying out any free trade
agreements with any country. There is nothing we can do about
that, so instead we have been negotiating deals with states at an
individual level, as I mentioned. For the last one, the governor
of Texas came to the UK to sign a trade deal memorandum of
understanding between Texas and the United Kingdom. Our
relationship with the US is going well. I spoke about exports
increasing, and our trade increasing to £311 billion. Trade with
the US is going well. We will continue to pursue a free trade
agreement, but trade requires two parties in order to
deliver.
(Dumfriesshire, Clydesdale
and Tweeddale) (Con)
Are Ministers as concerned as I am about continued reports that
Royal Mail is determined to move away from a six-day service? In
a large rural constituency such as mine, with an older
population, people continue to rely on the Royal Mail for
important communications. Can the Minister make clear that that
is not the direction of travel the Government want Royal Mail to
go in?
We absolutely agree with that point, and we have been clear with
Royal Mail and the regulator Ofcom that we want a continued
six-day service. Royal Mail and hopefully Ofcom will have heard
what my right hon. Friend and I are saying today: the six-day
service must continue.
(Strangford) (DUP)
T2. Further to the question from my hon. Friend the Member for
Upper Bann () to the Prime Minister
yesterday, with the Republic of Ireland now employing a form of
border control, seemingly reinstating a hard border, what
discussions have taken place regarding the ability for business
vehicles to pass through the border, with delays due to onerous
checks by Garda Síochána and Republic of Ireland and EU border
staff?(902640)
The Minister for Trade Policy ()
Of course the Government as a whole are monitoring this situation
very closely. We have very good relations with the Government of
the Republic of Ireland, and I will pass on the hon. Member's
comments to the Cabinet Office and the Foreign Office.
(Scunthorpe) (Con)
Would it be acceptable if the UK became the only country in the
G7 that could not make its own virgin steel?
My hon. Friend will know how committed this Government are to the
steel industry, but at the moment it is going through a
transition. We care about having primary steel-making capacity in
this country—that is something we want to do and to keep, but as
she knows, even now we still import ore. I know she is concerned
about British Steel and its future. I will be visiting her
constituency in Scunthorpe and we will be able to discuss those
matters further.
(Aberavon) (Lab)
T3. Yesterday, the BBC reported on expert analysis that has been
submitted to the transition board, indicating that cutting 2,800
directly employed Tata Steel employees could lead to up to 9,500
additional job losses, due to the huge number of contractors and
sub-contractors who are indirectly employed by Tata. When the
Government handed £500 million of taxpayers' money to Tata to do
that deal, had they made a full assessment of the job losses: not
just those directly employed by Tata who would lose their jobs,
but the vast number of jobs that will be lost through the supply
chains and contractors?(902642)
The hon. Gentleman and I both sit on the Tata transition board,
which has a dedicated group to look at the welfare of contractors
and supply chain partners. We will ensure that we support those
people as much as the direct employees of Tata.
(Aylesbury) (Con)
One of the many benefits of Brexit has been our ability to take
back control of our trade negotiations. The comprehensive and
progressive agreement for trans-Pacific partnership is one of the
most exciting, so will the Minister provide an update on the
status of our accession to CPTPP?
I am delighted to be able to do so, and delighted to have such an
enthusiastic supporter of CPTPP, which is an enormous benefit to
this country. The UK joining will take its share of global GDP
from around 11% to just over 15%. The UK will be the first
country ever to accede to CPTPP, which includes most of the
fastest growing markets in the Asia-Pacific region: the UK
joining shows that it goes beyond the region. On accession, we
are delighted that Royal Assent has been given to our Trade
(Comprehensive and Progressive Agreement for Trans-Pacific
Partnership) Act 2024, and we are looking forward to UK
ratification in the coming weeks. Three of the 11 parties have
ratified so far—Japan, Chile and Singapore—and we look forward to
further parties ratifying it in the coming weeks, to make
progress on this extraordinary opportunity for this country.
(Bath) (LD)
T6. Last year, the Environment, Food and Rural Affairs Committee
heard that the lack of a coherent agritrade policy, together with
a complex set of import and export certification rules, is
preventing rural businesses, particularly food producers, from
trading outside the UK. How will the Department support UK
producers to deal with complex trade red tape?(902646)
I gave evidence in front of the EFRA Committee just last week on
this very issue with our Minister for Food, Farming and
Fisheries, my right hon. Friend the Member for Sherwood (Sir
). We put in a huge amount of
resources. We have a number of commissioners and trade support
people around European Union countries and around the world
promoting agrifood exports. I add that we also have a record
level of services and exports to the EU, some of which will be in
the agriculture sector. We have, contrary to the constant doom
and gloom that the hon. Lady brings to this question time every
five weeks, a very good story to tell about the successes of the
United Kingdom when it comes to trade.
(Angus) (SNP)
Scottish salmon is just one of the Scottish businesses that serve
to prop up the failing UK economy, yet trade organisation Salmon
Scotland revealed recently that the salmon industry in Scotland
is losing £100 million a year in trade with the EU. Since 2019,
that has amounted to a 17% drop in trade. What message does the
Secretary of State have for this business in Scotland, where all
businesses and two thirds of the electorate rejected this hard
Tory Brexit?
We hear this from the Scottish National party all the time,
opposing everything in terms of UK trade agreements. It is
actually Scottish goods that benefit from so many of these trade
agreements that we have negotiated, such as whisky when it comes
to the Australian and New Zealand deals and the coming deal we
hope to do with India. All these deals benefit Scottish goods in
particular, yet the SNP has opposed or abstained on every single
trade deal that has ever been done by either this country or by
the European Union. [Interruption.] The hon. Gentleman knows it
is true. The SNP has abstained on Japan and on Singapore; it is
against Canada, against South Africa, against Korea, against
Australia and against New Zealand; and its Members even failed to
show up on the Ukraine agreement. It is a woeful record when it
comes to supporting Scotland from the SNP.
(Harrogate and Knaresborough)
(Con)
What action are the Government taking to strengthen critical
supply chains?
The Government launched our critical imports and supply chain
strategy earlier this year, and I chaired the Critical Imports
Council last month. We are bringing together 23 organisations to
make sure that our supply chains are robust, and I look forward
to my hon. Friend's input into that.
(Edinburgh West) (LD)
The village of Kirkliston in my community recently became the
latest to lose its post office—there have been a whole series of
closures. That community is not isolated, but it is not in the
centre of Edinburgh, and there is no alternative. As I say, it is
one of a series, so can the Minister tell us what the Government
are going to try to do to halt this decline in post offices?
As I said in response to an earlier question, we put in £50
million to support the uncommercial parts of the network. I am
sorry that the post office that the hon. Lady mentions has
closed. I am happy to meet her to see what we can do to ensure
that there is a local post office. There are network access
requirements on the Post Office, and 99% of the population must
be within 3 miles of a post office. If that is not the case in
her area, I am happy to do what I can to ensure that that is
rectified.
(Cardiff West) (Lab)
When the Minister for Trade Policy, the right hon. Member for
Chelsea and Fulham (), bragged to my hon. Friend the
Member for Rhondda (Sir ) earlier that his trade envoys
had to have a qualification of “diplomacy and discretion”, did he
have in mind the former trade envoy to Colombia, the hon. Member
for Fylde ()?
If the Opposition want to make an accusation, they should go
ahead and do so, rather than this playground game that they are
playing, which is insulting to every trade envoy, on both sides
of the House, who is delivering for this country.
(Tiverton and Honiton)
(LD)
Green Resource Engineering Ltd, a highly successful company in
Willand, already exports £1 million of engineering business to
South Korea every year and has done so for the last six years.
The managing director, Richard Booth, let me know that exporting
to Korea is already straightforward; by contrast, getting parts
in from Europe has become a real headache. Rather than fretting
about a free trade agreement with Korea, how are the Government
monitoring additional red tape after having left the European
single market?
We have the most comprehensive free trade agreement with the
EU—more than with any other country in the world—so that should
not be the reason for difficulties in bringing in components. If
the hon. Member has something specific that we can look at, I
will be happy to take a look, but we have been doing everything
to ensure that trade—in auto in particular—continues to boom, and
it is booming. We were able to stop the issue with rules of
origin, which was going to have a deadline at the end of this
year. In terms of specific components that are having trouble
getting across the border, I will need a bit more detail to
provide him with an answer, but that is not about leaving the
EU.
(Ayr, Carrick and Cumnock)
(SNP)
India is the second largest market for Scottish whisky in the
world, making it an extremely important market for the Scottish
economy. Currently, whisky exported to India has a 150% import
tariff placed on it. What steps is the Secretary of State taking
to ensure that, in any trade deal signed with India, that tariff
is reduced?
We are engaged in a live negotiation with India at the moment and
the hon. Member would not expect me to comment on the progress of
a live negotiation. India is obviously in a pre-election period
as well. However, I can tell him that Scotch whisky tariffs are
very much part of that negotiation; everybody knows that that is
one of the key UK objectives. May I perhaps add that, if we do
get a good deal on Scotch whisky, I will look forward to the SNP
for the first time actually voting for a trade deal with
India?
Sir (Northampton North) (Con)
Does my right hon. Friend agree that it would be odd and
inappropriate for the United Kingdom to impose any form of arms
embargo against Israel when His Majesty's armed forces are in the
region and working with Israel to provide humanitarian support,
and the UK would expect Israel to help in the protection of His
Majesty's forces?
My right hon. and learned Friend makes a good point. The Prime
Minister addressed this issue yesterday. I know that there is a
lot of interest in arms exports to Israel, and yesterday my
entire Department was blockaded by protesters, meaning that civil
servants who needed to get to work could not do so. The
Government continue to monitor closely the situation in Israel
and the Occupied Palestinian Territories. All export licence
applications are assessed on a case-by-case basis against the
strategic export licensing criteria. The Government take their
defence export responsibilities extremely seriously and operate
some of the most robust export controls in the world.
Mrs (Mid Derbyshire) (Con)
Could the Secretary of State explain what she is doing to help
businesses in my constituency that have difficulties because we
do not have the skills to increase the business—they cannot
expand because they lack some skills? Could she explain what she
is doing to help with that skills shortage?
I thank my hon. Friend for championing businesses in her
constituency. We are putting £3.8 billion into skills training
for people who work for businesses, which is important. We are
also improving skills for entrepreneurs and business owners
through our help to grow management programme—it can be found on
the help to grow webpage—a 12-week mini-MBA, which is 90% funded
by the Government. We also have “Help to Grow: Management
Essentials”, which offers two hours of totally free online
training for aspirant new business owners.
(Blaenau Gwent) (Lab)
Can the Secretary of State tell us about the UK's supply of
cyber-security professionals and whether a lot of that work is
now being offshored?
I am afraid that I do not have the details to answer that
question. On the face of it, given the information I have, it is
not something I have heard before, but we can write back with
more information. However, it does not sound like that is the
case.
(Gower) (Lab)
In my constituency we have the fantastic company Selwyn's, whose
seafood is first class. It exports a lot; what is the
Government's current assessment of the export of cockles and
other seafood in the Welsh market?
I thank the hon. Lady for her question and her interest in this
important sector. We regularly meet the UK seafood sector, which
can often be subject to very high tariffs from foreign markets,
but the UK's quality shines through. It is a key part of many of
our current trade negotiations. I urge her to watch this space.
We are always happy to meet the company concerned, but I can
reassure her that when it comes to seafood exports, the
Department is constantly engaged both in trade policy and in the
support we give our exporters.
