Levelling Up Jon Trickett (Hemsworth) (Lab) 1. What assessment she
has made of the adequacy of her Department’s implementation of
policies supporting levelling up.(906364) The Secretary of State
for Business and Trade (Kemi Badenoch) I warmly welcome the new
shadow ministerial team—it is a slimmed-down team from what we have
been used to, but I welcome them all. My Department is focused on
growing the economy by attracting global investment,
promoting...Request free trial
Levelling Up
(Hemsworth) (Lab)
1. What assessment she has made of the adequacy of her
Department’s implementation of policies supporting levelling
up.(906364)
The Secretary of State for Business and Trade ()
I warmly welcome the new shadow ministerial team—it is a
slimmed-down team from what we have been used to, but I welcome
them all. My Department is focused on growing the economy by
attracting global investment, promoting exports and creating the
right regulatory business environment. Over the past five years
we have supported more than 6,000 foreign direct investment
projects, creating more than 280,000 new jobs across the UK. Just
last week, the Department for Business and Trade supported
Stellantis’s £100 million investment in an electric vehicle
production plant in Ellesmere Port, showing the direct role we
play in helping to level up across the regions and nations of the
UK.
Like many hon. Members, during the recess I visited various sites
in my constituency, including Langthwaite business park, which is
an immensely successful business park with more than 50
businesses now employing almost 2,000 people. It is adjacent to
two former pit villages, South Elmsall and South Kirkby, where
deprivation is still deeply rooted. The people who live in those
villages are not able to take advantage of the jobs created by
Wakefield Council, Mohan De Silva and Karen Harrison. What
Government programmes has the Secretary of State put in place, or
can she put in place, to ensure there is a linkage between areas
of deprivation and new jobs?
Mr Speaker
I think you need an Adjournment debate.
There is a lot that we are doing, and I am sorry to hear that the
hon. Gentleman feels that villages in his constituency still are
not able to access much of what we have given. The West Yorkshire
devolution deal provided about £1.14 billion of investment and we
also had a shared prosperity fund across West Yorkshire. I urge
him to speak to his local council, because that is the vehicle
through which many of these opportunities will be provided, but
if he has a specific business issue that he thinks is affecting
those companies and those villages, we are happy to look at it in
more detail.
Mr Speaker
I call the shadow Minister.
(Manchester, Gorton) (Lab)
My home city of Manchester was built on export and trade, but, as
a result of the Tories’ mismanagement of the economy, apathy
towards the export industries and neglect of everywhere outside
the M25, the value of exports from London is more than three
times that of the north-west. Does the Secretary of State
honestly believe that she and her colleagues are committed to
levelling up the whole of the UK, or will she admit that the
Tories do not care about the benefits of trade reaching everyone
in the United Kingdom?
I fundamentally disagree with the hon. Gentleman. He mentions
Manchester; since October 2022 we have invested £2.6 billion into
projects across England and agreed landmark devolution deals for
Greater Manchester. He should be speaking to the Mayor of Greater
Manchester to find out exactly why all that we are doing is not
reaching the people in his constituency.
Steel Industry
(Scunthorpe) (Con)
2. What steps her Department is taking to support the steel
industry.(906365)
The Minister for Industry and Economic Security ( )
I am in constant conversations with specific companies to do with
steel, including British Steel in my hon. Friend’s constituency,
but of course those conversations are often commercially
sensitive. I was delighted to speak at the event she hosted in
Parliament to celebrate the launch of the Government’s updated
steel procurement policy note, which will help to make
opportunities more visible and maintain a level playing field for
UK steel producers. In the financial year 2021-22, relevant
public procurers bought around £365 million-worth of UK produced
steel. Furthermore, the Government have provided around £730
million in energy costs relief to the sector since 2013.
Can my hon. Friend set out specifically what is being done to
ensure the continued production of virgin steel in the UK?
Ms Ghani
Steel is vital to the UK, but we know that the industry needs to
decarbonise for a sustainable future. The Paris agreement made it
clear that the sector had to reduce its global emissions by 93%
by 2050. The Government are actively engaging with the sector on
how best to achieve that, but decarbonisation pathways for
specific sites will be commercial decisions for individual
companies. Industrial sectors, including steel companies, can bid
into Government funds worth hundreds of millions of pounds to
help them go green. As I mentioned, we have done a huge amount to
support energy intensive industries.
(Sefton Central) (Lab)
The UK is the only major steel-producing nation where production
is falling, but the Minister and her colleagues have been telling
us for months that they cannot guarantee the use of UK-made steel
in Government contracts, especially in the military. The thing is
that the steel producers say that they can make whatever their
customer asks by changing the production line. Will the Minister
confirm that the reason we have a problem with steel in this
country is the Government’s refusal to view it as a strategically
important industry? The Conservatives’ sticking-plaster politics
have failed steelworkers, as we have seen at Port Talbot.
Ms Ghani
I fundamentally disagree with the question—well, it was more of a
statement. I made it clear when I took on this role that we would
assess the level of steel in procurement contracts, and we have
put together the steel procurement policy note, which will
address how much steel is being procured in our contracts in the
UK. We are doing a huge amount to ensure that the different types
of steel that are needed are produced. We know how valuable the
sector is, which is why we provided support with high energy
costs and why we have a decarbonisation budget that the industry
can link into. I fundamentally disagree with the hon. Gentleman’s
proposition.
Mr Speaker
I call shadow Minister and welcome her to her new
position.
(Croydon Central) (Lab)
In Wales, it is reported that this Government will spend half a
billion pounds to make thousands of Port Talbot steelworkers
redundant. Head north to Derby to a train assembly plant, where
thousands more jobs are under threat because this Government
bungled High Speed 2. Head around the UK coastline and the
Government have managed to misjudge industry so much that they
secured zero offshore wind contracts. That is a UK tour of
almighty Conservative incompetence. Labour will harness this
country’s talent. Will the Minister explain how many jobs the
Government are losing us at Tata Steel, how many jobs they are
losing us in Derby, how many jobs they are losing us in offshore
wind, and why they are so intent on levelling down our great
British industries?
Ms Ghani
I welcome the hon. Member to her post, but I suggest that leading
on stories in the paper is not a good way forward. That is all
speculation; we do not comment on commercial decisions. The
reality is that there is £730 million in support with energy
costs and more than £1 billion of support with decarbonisation.
She talks about plans. Well, I am not sure if the Labour party’s
plan stands for anything because it flip-flops so often. It is
not just me who says that; let us reflect on a statement made by
a union leader. They said that Labour was not only just an ’80s
tribute act, but that it tends to sit on a “wobbly fence”. Who
knows what Labour will say tomorrow after a statement made
today?
Shipbuilding
(Waveney) (Con)
3. What steps her Department is taking to support the
shipbuilding sector.(906367)
The Minister for Industry and Economic Security ( )
My hon. Friend asks a timely question, because this is London
International Shipping Week, and I have engaged with the UK
Chamber of Shipping and Maritime UK. This week, I was at the
International Maritime Organisation, which was hosting an
exhibition called “Rewriting women into maritime history”,
sponsored by the Lloyd’s Register Foundation—I mention in
particular Nicola Good and Erne Janine, who made me this scarf
reflecting on women in maritime. We are doing a huge amount,
including launching the shipbuilding credit guarantee scheme to
support our shipyards here in the UK.
I am most grateful to my hon. Friend for that answer. The
disappointing outcome of last week’s contracts for difference
auction in respect of offshore wind was a wake-up call that clear
strategies are required if we are to retain our position as a
global leader in that industry. That includes support for the
supply chain, of which service operation vessels are a vital
component. Can she confirm that the national shipbuilding
strategy will be reviewed to fully take into account this great
opportunity?
Ms Ghani
We are proud of the UK’s reputation as a leader in the offshore
wind sector. Together with industry, we have delivered the four
largest operational wind farms in the world. The National
Shipbuilding Office has done a huge amount of work in that area
and will do even more with the new shipbuilding guarantee scheme.
I think my hon. Friend’s other question relates to the Department
for Energy Security and Net Zero. This is London International
Shipping Week, and our offshore wind farms and all our vessels
are being promoted heavily.
(Warley) (Lab)
May I draw the Minister’s attention to the fact that the three
fleet solid support vessels for the Royal Navy are
massive—equivalent to two aircraft carriers? Has she discussed
with the Ministry of Defence why they will be built mostly in
Spanish shipyards, rather than in British shipyards by British
workers to sustain our shipbuilding industry? Does she know of
any other shipbuilding country that behaves like this?
Ms Ghani
I have indeed discussed it with the Ministry of Defence and the
National Shipbuilding Office. We want to make sure not only that
the contracts for the work are managed here in the UK, but that
we are using UK steel.
International Investment in Northern Ireland
Dame (South Northamptonshire)
(Con)
4. What steps she is taking with Cabinet colleagues to help
increase international investment in Northern
Ireland.(906368)
The Secretary of State for Business and Trade ()
Just yesterday I was in Belfast, where my Department delivered
the Northern Ireland investment summit in partnership with the
Northern Ireland Office and Invest Northern Ireland. I would like
to take the opportunity to thank the Secretaries of State for
Levelling Up, Housing and Communities and for Northern Ireland
for their support in making it a success. Five hundred delegates,
including investors from 24 countries around the world, attended
to see at first hand the unique opportunities for inward
investment in Northern Ireland across a range of sectors,
including life sciences and advanced manufacturing.
Dame
What consideration has my right hon. Friend given to creating an
investment zone that covers the whole of Northern Ireland to
bring much needed investment to that much loved part of the
United Kingdom?
It is a very interesting idea. Investment zone policy is owned by
the Department for Levelling Up, Housing and Communities, so I
will raise it with the Secretary of State there and the Secretary
of State for Northern Ireland. Officials from the UK Government
and the Northern Ireland civil service continue to work closely
to explore developing investment zone policy in the country. The
lack of a functioning Executive there has, of course, limited the
scope and nature of engagement on investment zones. If the
Executive is restored, we will work together to progress an
investment zone at pace, and if it is not formed, we will set out
different plans in due course.
(Strangford) (DUP)
First, I thank the Secretary of State and the Government for the
investment conference they held in Belfast over the last two
days. It clearly shows a commitment to Northern Ireland, and I am
very pleased to see that. When it comes to international
investment, we are happy to see in Northern Ireland that Harland
& Wolff, which has specialised in ship repair and
shipbuilding for some years, has recruited almost 1,000 people in
the last few months. What discussions has the Secretary of State
had with the relevant Department back home to ensure that
Northern Ireland can play its part in the UK shipbuilding
industry and therefore benefit from that investment?
The hon. Gentleman is quite right: this is an area where Northern
Ireland has a comparative advantage. As we hosted the summit, we
all looked out on the docks, and we could see that shipbuilding
is integral to the country. UK Export Finance is supporting many
of the companies that build ships and want to export this
magnificent UK product all across the world. My hon. Friend the
Minister for Industry and Economic Security spoke about the UK
shipbuilding guarantee. We have been talking about this all week.
Maritime investment is key, and if the hon. Gentleman would like
further details on what we are doing that has an impact on his
constituency, we can provide him with that information.
Mr Speaker
I welcome the shadow Minister to her new position.
(Bethnal Green and Bow)
(Lab)
Thank you, Mr Speaker. Business investment is lower in the UK
than in any other G7 country and we rank 27th out of 30 OECD
countries, ahead of only Poland, Luxembourg and Greece. More than
half a trillion pounds-worth of under-investment by Government
and business has left our economy trapped in a growth doom loop.
What is the Secretary of State doing to undo this damage?
What the hon. Lady did not say is that business investment is
increasing at a faster rate than in other countries. She is right
that investment has been lower here, but that is why the
Chancellor brought in policies such as full expensing to tackle
this issue. She also did not mention the fact that we are the top
destination for investment across financial services and many
other areas. The UK is actually doing very well when it comes to
inward investment, and we will continue to create policies that
ensure we stay at the top of the pack.
Regulatory Reform
(Chipping Barnet)
(Con)
5. What recent progress she has made on regulatory
reform.(906371)
The Parliamentary Under-Secretary of State for Business and Trade
()
My Department is making it easier to do business every single
day. Our smarter regulation programme—which includes
implementation of the reforms recommended in the report by the
taskforce on innovation, growth and regulatory reform,
co-authored by my right hon. Friend the Member for Chipping
Barnet ()—is reducing regulatory
burdens for business and reducing costs for consumers. We have
announced reforms to employment law, wine regulation and product
safety regulations, and further reforms will be announced
soon.
I thank the Minister for his answer, but can we have more urgency
across Departments on regulatory reform? Using our Brexit
freedoms to modernise our regulation is a key way to grow the
economy and raise living standards, so can we see more progress
on reforming regulation in areas such as personal data, clinical
trials, agri-tech and satellites?
My right hon. Friend the Member for Chipping Barnet is absolutely
right to push us on this issue. We are working across Government
to implement reforms. So far, we have delivered 10 of the 69
recommendations identified in the TIGRR report, in areas such as
offshore wind and reforms to the Medicines and Healthcare
products Regulatory Agency. Delivery of a further 49 is ongoing,
in high-profile areas such as artificial intelligence reform,
easing clinical trials, pensions, the ability to invest in
venture capital, the General Data Protection Regulation and the
seed enterprise investment scheme, all of which is saving
businesses billions of pounds. My right hon. Friend the Secretary
of State will shortly write to my right hon. Friend the Member
for Chipping Barnet to confirm all those points.
Business Exports
(South West Bedfordshire)
(Con)
6. What steps her Department is taking to support business
exports.(906372)
(Ynys Môn) (Con)
8. What steps her Department is taking to support business
exports.(906374)
(Harrogate and Knaresborough)
(Con)
12. What steps her Department is taking to support business
exports.(906380)
The Minister for Industry and Economic Security ( )
Businesses are at the heart of the Government’s export strategy,
“Made in the UK, Sold to the World”, and of our shared ambition
to reach £1 trillion in annual exports by 2030. In the past year,
the UK has become the fifth largest exporter of goods and
services in the world. Just last week, I personally led a
delegation of 20 businesses to the Three Seas summit in Romania,
connecting with over 1,500 representatives to help secure
contracts, work and export opportunities in the region’s 13
member states.
In my constituency, companies such as EyeOL, Lindal Valve, Peli
BioThermal, Friction and Signature Flatbreads all export
globally, along with 198 smaller businesses that export through
Amazon, yet apparently only 10% of companies export. What more
can we do to get businesses to export, not just to Europe but
globally? Apparently, businesses that export pay higher wages, so
this is part of levelling up, too.
Ms Ghani
My hon. Friend is a great champion for his businesses and helping
them to export. He is absolutely right that free trade agreements
and memorandums of understanding are opening up new markets for
us, but of course we want to make sure that everyone makes the
most of those opportunities. That is why we are ensuring that UK
exporters have the skills they need through our innovative export
academy; the information they need to capitalise on new deals
through the FTA utilisation strategy; the advice they need
through the export support service; and the financial backing
they need through UK Export Finance. My hon. Friend also made the
very powerful point that companies that export pay higher
wages.
Anglesey’s freeport is a fantastic opportunity to boost the
economic prosperity of my constituency of Ynys Môn. Working with
the Institute of Export and International Trade, Bangor
University and Grŵp Llandrillo Menai, our Anglesey freeport is
set to create the first Welsh trade centre of excellence. Does
the Minister agree that that trade centre is central to local
people having the skills to take advantage of the high-skill,
high-wage employment opportunities that the freeport will
deliver, and that it will be the start of Anglesey’s economic
renaissance?
Ms Ghani
I think we can all agree that my hon. Friend has campaigned
powerfully to secure that freeport and the opportunities it will
create for many of her constituents. Good news is already coming
in, with Westinghouse saying that it will headquarter there,
creating jobs and opportunities. Of course, we are looking
forward to getting more details and ensuring that the trade
centre for excellence is located there too, which will provide
another win for my hon. Friend.
I ran export programmes in my business career before coming to
this place, and I always talk to the companies I meet about
whether they are exporting and what more can be done.
[Ms
Ghani](/search/MemberContributions?house=Commons&memberId=4460)
rose—
Steady—I haven’t asked my question yet! The message from that
experience is that perceived barriers can deter activity—perhaps
perceived risk or complexity. What more can be done to link
potential exporters with mentors who can share their experience,
overcome those perceptions and get more companies exporting?
Ms Ghani
My hon. Friend has a huge amount of experience in this area, and
I am very grateful for all the advice he provides. He makes a
very good point. That is why our campaign, “Made in the UK, Sold
to the World”, uses localised marketing for small businesses
across the country to help them make the best of their abilities.
To my hon. Friend’s point, we have a growing cohort of over 360
successful champions across the UK—entrepreneurs and business
leaders who can share their experience and inspire new firms to
become exporters.
(Birmingham, Hodge Hill)
(Lab)
New analysis from the House of Commons Library that I am
publishing today shows that since 2010 our trade with
dictatorships has grown by over £135 billion and that it is
growing twice as fast as our trade with the free world. Trade
dependence on dictatorships is a risk, so when will the Minister
set out a plan to define and de-risk our critical supply chains
and begin growing our trade with nations that are free?
Ms Ghani
I am responsible for supply chains and critical minerals too;
several months ago, I refreshed our critical minerals strategy.
We are looking at how we ensure that we are building resilience
and ensuring that our supply chains are stable.
I am also working with a number of industry representatives to
put in place an import supply chain strategy as well. We know
that there are kinks in supply chains and that there are issues
of economic coercion around the world. We want to ensure that we
have stable supply chains to protect our advanced manufacturing
sector. [Interruption.] From a sedentary position, my right hon.
Friend the Secretary of State points out that I am also the
sanctions Minister. We are ensuring that that work is now
co-ordinated, not only across Whitehall but internationally.
(Middlesbrough) (Lab)
Those of us on the Business and Trade Committee are very much
aware of the sterling work done by officials in furtherance of
the trade deal with India. However, in the revelation at the G20
summit of the Partnership for Global Infrastructure
Investment—the counter to China’s belt and road project through a
US-backed trade corridor to speed up links between Europe, the
middle east and India—there was no mention of the UK. Did our
Government decline to be involved or were we not invited?
Ms Ghani
I was in front of the Select Committee; that session would have
been afterwards. I have just been informed that the Prime
Minister is very much focused on securing a trade deal and on the
other details that the hon. Gentleman raised. Because it is a
Select Committee issue, I will make sure that he gets all the
details in writing.
(Tiverton and Honiton)
(LD)
During the recess, I visited Heathcoat Fabrics, an innovative
export business in Tiverton; its achievements include selling to
NASA a device that helped land the Mars rover on the surface of
Mars. Earlier this year, HMRC rejected Heathcoat’s research and
development claim without so much as a meeting. Will the Minister
talk with colleagues at the Treasury to establish why Heathcoat
Fabrics and other innovative export businesses are having R&D
claims rejected this year?
Ms Ghani
I say simply that yes, I will.
Mr Speaker
We now come to the shadow Minister.
(Harrow West) (Lab/Co-op)
According to the International Monetary Fund, British exports to
France and Germany since 2019 are down—by 14% to France and 17%
to Germany. US exports to both are up by 20%; Canada’s are up by
23% and Italy’s are up by 29%. Ministers will not back an
industrial strategy, have cut funding to get businesses to trade
shows and will not negotiate a veterinary agreement. Why does
this Minister think that everyone else has got so much better
recently at selling things to our nearest neighbours?
Ms Ghani
Members choose which numbers they want to throw out, but those do
not necessarily reflect reality. I thought it was fantastic that
we are now the eighth largest manufacturer in the world; I
believe that we leap-frogged France—leap-frogging the French is
always good to get on the record.
Actually, exports are most definitely up. In the 12 months to
June 2023, UK exports rose by £139 billion, an increase of 8%
once adjusted for inflation. In the same period, goods exports
reached £428 billion, an 11% increase when adjusted for
inflation. Perhaps we should reflect on the opportunities for all
the businesses in our constituencies.
Trade Negotiations: Human Rights
(East Lothian) (Alba)
7. What recent discussions she has had with (a) NGOs and (b)
charities on the inclusion of human rights considerations in
trade negotiations.(906373)
The Parliamentary Under-Secretary of State for Business and Trade
()
The Government are committed to universal human rights, the rule
of law, free speech and fairness. Those values guide all aspects
of our international policy, including our approach to trade.
As trade talks continue with many countries that have deplorable
human rights records and as discussions continue with India, will
the Minister ensure that we receive binding commitments on human
rights—particularly in relation to labour practices—rather than
simply warm words, and that discussions continue with NGOs, which
are well placed, and often better placed than the Foreign,
Commonwealth and Development Office, on what is going on?
I thank the hon. Gentleman for his question. The UK will continue
to show global leadership in encouraging all states to uphold
international human rights obligations and to hold those who
violate or abuse human rights to account. The UK has successfully
included labour, environment and gender provisions in the free
trade agreements that we have signed—with Australia and New
Zealand, for example. Those both contained dedicated chapters on
trade, gender equality, labour and the environment. They uphold
human rights but, crucially, also level the playing field for our
UK businesses.
Trade Policies: Cost of Food
(Glasgow North) (SNP)
9. What recent assessment she has made of the impact of her trade
policies on the cost of food. (906376)
The Minister for Industry and Economic Security ( )
Food prices are driven by many pressures, including the global
economic climate. We recognise the important role that trade can
play in improving food security through diversification of supply
chains. Our programme of free trade agreements is securing access
to global supply chains, removing barriers and lowering costs for
traders. Furthermore, in 2022, 84% of agricultural and food
imports entered the UK tariff-free. By delivering trade deals and
working with international partners, we are ensuring that British
consumers have access to good-quality and good-value food.
Will the Minister explain how the Government’s plans for a £43
inspection fee on each consignment of food imported from the
European Union represent barrier-free trade? Can she tell small
food retailers, restaurants and their customers in Glasgow North
when or whether they will have to pay this Brexit tax and the
higher prices it will lead to? Can she also remind the House
whether higher food prices as a result of Brexit were part of the
Leave campaign prospectus?
Ms Ghani
I know the hon. Member wants to put all these anxieties on Brexit
and forget about all the opportunities we are securing with trade
agreements around the world. The issue he raises fundamentally
sits at the doorstep of the Cabinet Office and the Department for
Environment, Food and Rural Affairs, and we are working very
closely with them to resolve it.
Mr Speaker
I call the Scottish National party spokesperson.
(Gordon) (SNP)
As if the future stoking of inflation through extra Brexit red
tape was not bad enough, businesses are already having to cope
with uncertainty, the lack of a level playing field and the
threat to our own food safety and security through the failure to
introduce checks of our own. Given that Ministers were saying as
recently as April that those checks will begin on 31 March, can
the Minister explain how businesses are expected to get to grips
with all this turmoil in Government policy given their tendency
to keep kicking the can down the road over border checks?
Ms Ghani
Food inflation is a global issue: it is not a problem just here
in the UK. Many factors influence food prices globally, notably
energy costs. Global wholesale food prices have been falling
since March and sometimes that can take time to reach consumers.
In July, UK food inflation was just over 14%, down from 17%. The
hon. Gentleman did not specify which issue he was touching on,
but if it was to do with sanitary and phytosanitary controls for
goods from the EU, that will be introduced and in place by 31
January 2024.
The Government could stop making existing global problems even
worse when they apply to the UK—I was following up on the
question from my hon. Friend the Member for Glasgow North () about the cost of checks on
imported food—but the only thing worse than bad border checks is
no border checks at all. We are no longer imposing SPS checks on
food coming in from the EU. Is the Minister proud that, under the
guise of taking back control, she is part of a Government who
have given away control instead?
Ms Ghani
I referenced in my previous response the SPS controls; they were
not in place when we were in the EU so I am not sure exactly what
the hon. Gentleman’s anxiety is.
Comprehensive and Progressive Agreement for Trans-Pacific
Partnership
(Hayes and Harlington)
(Lab)
10. What plans she has for accession to the comprehensive and
progressive agreement for trans-Pacific partnership. (906377)
The Secretary of State for Business and Trade ()
I signed the UK’s accession protocol to the CPTPP in New Zealand
in July. We are now taking the necessary steps to ratify our
accession agreement at the earliest opportunity. We expect it to
enter into force in the second half of next year.
I thank the Secretary of State for her response. The CPTPP
contains investor-state dispute settlement provisions which allow
corporations, as she knows, to sue national Governments through a
largely secretive parallel legal system if they consider that
Government policies threaten their future profits. Of the new
agreement member states, Canadian countries have used the ISDS
particularly aggressively, bringing 65 cases, the majority of
which have been brought by mining and fossil fuel firms against
the energy and environmental policies of various Governments.
Will the Government consider negotiating a side letter with
Canada, as they already have with New Zealand and Australia, to
disapply the ISDS provisions in order to ensure the UK
Government’s right to regulate is not constrained by powerful
investors and corporations?
We have passed the stage where we will be making any changes; we
are now trying to ratify the protocol. But the right hon.
Gentleman should be reassured: the Government have always been
clear that when we negotiate investment protection we do so in a
way that does not hinder our right to regulate in the public
interest. The UK already has investment agreements containing
ISDS provisions with seven of the 11 CPTPP countries and we have
never received a successful claim from any investors of CPTPP
countries, or in fact investors of any other country with which
we have ISDS commitments.
(Cleethorpes) (Con)
I congratulate my right hon. Friend on the progress made with
CPTPP. Can she outline what plans the Department has to make UK
companies aware of the opportunities that the agreement opens up
for them?
My hon. Friend raises an important point, because most of the
time, people ask me what CPTPP stands for, let alone what it is
and how they can use it—[Interruption.] Well, not my hon. Friend
the Member for Lichfield (). We would like to make
sure that people are aware of it, so they can utilise this free
trade agreement as soon as it is on our statute book and ratified
across the 11 countries. That is something that our export
commission and support service in the Department for Business and
Trade will be carrying out, and we will also be supporting MPs in
their constituencies during International Trade Week to highlight
opportunities that come from all our free trade agreements.
Business Exports: US
(Lichfield) (Con)
11. What steps her Department is taking to support business
exports to the US. (906378)
The Secretary of State for Business and Trade ()
[Interruption.] Pardon me for one second; there is a technical
failure. The US is our largest trading partner, with trade
reaching more than £290 billion. We have already succeeded in
agreeing a solution to the section 232 tariffs on UK steel and
aluminium and removed the long-standing US ban on UK lamb. In
fact, just yesterday, I was speaking to President Biden’s special
envoy Joe Kennedy about how we can increase trade and investment
in Northern Ireland. We also have an SME dialogue next month
between our two countries, supporting UK and US businesses to
find export opportunities in each other’s markets.
That is really good news, actually. In other good news, I learned
this morning that Britain has overtaken France as a manufacturing
country. In order to take full advantage of that, how can we use
the nine trade representatives in the United States at our
embassy and our consulates even more to encourage bilateral
trade?
My hon. Friend is right. We have trade ambassadors and trade
envoys working to ensure that we are fully utilising the
opportunities that exist across our relationship with the US. In
fact, our envoy to the US has been helping and supporting with a
memorandum of understanding with Florida, which we are hoping to
conclude shortly. If there are specific things he thinks we can
do to assist, I would be happy to meet him and organise even more
engagement that will help facilitate UK-US trade.
Trade: Europe
(Manchester, Withington)
(Lab)
13. What steps she is taking to increase trade with European
countries. (906381)
The Minister for Industry and Economic Security ( )
Europe remains a vital destination for British exports. UK
businesses exported more than £416 billion in the year to March
2023, up 24% in current prices on the previous year. We are
engaging extensively with key European partners. This weekend, my
right hon. Friend the Trade Secretary will attend the annual
UK-Italy bilateral conference to advance the landmark ministerial
dialogue on export and investment promotion launched in February,
the first agreed between the UK and any EU country.
Here is an issue that could be discussed at that meeting: the
youth group travel sector is worth £28 billion to the UK economy,
but that two-way trade has collapsed since Brexit. The Prime
Minister made a vague commitment in March that there would be an
agreement for French school groups to visit the UK. We have heard
no more details, and anyway we need a wider agreement to include
other countries. When will the Government sort out this
problem?
Ms Ghani
I think this matter sits not just with our Department, but with
the Department for Education. If the hon. Gentleman will allow, I
will write to him formally and make sure he gets an update on
this issue.
Hospitality Sector: Scotland
(Edinburgh North and Leith)
(SNP)
14. Whether she has had recent discussions with (a) Cabinet
colleagues and (b) the Scottish Government on support for
Scotland’s hospitality sector. (906384)
The Parliamentary Under-Secretary of State for Business and Trade
()
As the hon. Member will be aware, hospitality support is
devolved. We continue to provide energy support via the energy
bills discount scheme, benefiting hospitality businesses across
the UK. I would be happy to meet her and any of her colleagues to
see how we can help hospitality businesses across the whole
UK.
That is excellent to hear, because the hospitality sector plays a
crucial role in Scotland’s economy, but it has consistently been
let down by the UK Government, who repeatedly fail to support the
industry with the unique challenges it faces. Businesses across
Scotland are grappling with inflationary pressures, labour and
skill shortages and the ever-increasing complexity of trading
rules with 27 countries we once traded with freely. Why will the
Minister not accept that Brexit lies at the heart of these
problems?
If the hon. Lady looks again, she will find that the Scottish
Government lie at the heart of these problems. In England, all
eligible businesses can get 75% relief on their rates, subject to
a cap of £110,000, while in Scotland, rates relief is available
only to small businesses and could be as low as between 25% and
0% for individual properties with rateable values from £15,000.
There is far more support available for English businesses than
for Scottish businesses. I think she should go back and look
again at the facts.
Courier Services: Rural Areas
(Carmarthen East and
Dinefwr) (Ind)
15. Whether she has had discussions with courier services on
deliveries to isolated rural areas. (906385)
The Parliamentary Under-Secretary of State for Business and Trade
()
I appreciate the hon. Member’s interest in ensuring a fair deal
for his constituents. The Government’s universal service
obligation on Royal Mail guarantees delivery of parcels at
uniform rates throughout the UK, without any geographical
restrictions. Where other courier businesses decide to serve
should be a commercial decision for them.
A constituent who visited my surgery recently complained that one
courier service in particular would not deliver to his isolated
rural property. The choice of courier is, of course, currently a
matter for retailers. Do the Government agree, though, that there
is a case for saying that large retailers could offer the
consumer the choice of which courier service should be used? That
would empower consumers and hopefully improve performance via
competition.
The hon. Member raises a very important point. Competition plays
a role in this, of course. It is absolutely right that retail
business should look at this and try to get the lowest cost for
their customers in terms of courier charges. It is, as he
acknowledges, a commercial decision for individual retailers, but
I absolutely applaud the points he raises. These businesses
should be aware of those costs, because they can add
significantly to the costs of the products they are selling.
Topical Questions
(Newcastle upon Tyne Central) (Lab)
T1. If she will make a statement on her departmental
responsibilities. (906388)
The Secretary of State for Business and Trade ()
The Windows update is now complete at the Dispatch Box, Mr
Speaker!
As Secretary of State for Business and Trade, my priority is to
support inward investment into all regions and nations of the UK.
This week the Department for Business and Trade, in partnership
with the Northern Ireland Office and Invest Northern Ireland,
delivered the investment summit, which I referred to earlier.
This momentous event showcased to more than 200 international
investors the wealth of opportunities and talent that exist
across the breadth of Northern Ireland. A young and talented
workforce, competitive operating costs and unparalleled access to
global economies make it an exceptional place to grow a
successful business. I met representatives from US-owned
aerospace manufacturer Spirit and several financial services
companies that have established a base there. From
Derry/Londonderry-based tech firms to Belfast budding creative
companies, we boast a thriving ecosystem of world-class
businesses across numerous sectors.
This weekend, like most weekends, I will visit Wilko in Newcastle
city centre. Should I explain to the fantastic staff there and
their appreciative customers that mass redundancies and empty
shopfronts is what the Conservatives mean by levelling up?
We are all very sad that a well-known business such as Wilko,
with a strong presence on many high streets across our
constituencies, has had to enter administration, and my thoughts
are with employees who have been made redundant. Our Department
has been not just supporting the business but discussing the best
way forward with unions. We have been supporting by helping to
find bidders. The fact is that sometimes these things do happen.
It is not a reflection of the Government. In fact, making sure
that people have somewhere to go to is how this Government are
providing support.
Dame (South Northamptonshire)
(Con)
T2. Do Ministers agree that delegates to the Parliamentary
Partnership Assembly, which was set up under the trade and
co-operation agreement with the EU, should be there to promote
Britain’s interests overseas, and that those who do not want to
do so and who simply want to be apologists for Brexit and to act
against the UK’s interests should leave the PPA? (906389)
The Parliamentary Under-Secretary of State for Business and Trade
()
My right hon. Friend raises an important point. The Parliamentary
Partnership Assembly created under the trade and co-operation
agreement is a parliamentary body independent of Government. The
Government value its work and its role supporting a mature and
constructive relationship with the EU, rooted in shared values
and delivering on shared interests. She is right that we should
look forward, not backwards.
Mr Speaker
I call the shadow Secretary of State.
(Stalybridge and Hyde)
(Lab/Co-op)
The loss of Wilko is a significant blow to the nation’s high
streets. However, more concerning is that no rescue has proved
possible because several bidders have said that town centre
retail is no longer a viable business model. In the light of
that, do the Government really believe that their current policy
environment is sufficient for British high streets to thrive?
We are very concerned for the families affected by Wilko’s
demise. The world of retail is a very competitive marketplace. I
do not accept the hon. Gentleman’s premise that the high street
is dead—not at all. It is reshaping itself, and while it does so
we will help it, such as with the £13.6 billion of rates relief
over the next five years.
Ministers’ answers do not match the scale of the problem; 12,500
Wilko workers alone are at risk of redundancy. Labour’s plans for
the high street are about reforming business rates, tackling late
payment, cracking down on antisocial behaviour and stopping
premises being left empty, with councils having more powers. The
problem demands a response from Ministers. Based on their answers
today, this Government have simply given up on the British high
street.
That is complete nonsense. This week, I met Helen Dickenson from
the Retail Sector Council to discuss this matter closely. There
are certain situations in certain companies of course. I guard
the hon. Gentleman against political opportunism on the back of
those 12,500 jobs, many of which have been picked up by other
retailers such as Poundland in rescues of stores. On his point
about business rates, which I hear time and again, all the Labour
party has done is say that it will cancel £22 billion of business
rates, without saying how it will replace those taxation
receipts. Where is the money coming from?
(Harrow East) (Con)
T4. The Secretary of State and the Prime Minister have both been
in India recently and had the opportunity to negotiate further on
the wonderful trade deal that we wish to do. Her predecessor but
one or two promised a trade deal with India by Diwali. Of course,
they did not mention which year. Diwali this year is later than
normal; what confidence does she have that we will have it in
place by Diwali this year?(906391)
Mr Speaker
With a question that long, we will be celebrating the next
one.
My hon. Friend is keen for a deal by Diwali, but as the Prime
Minister and I have been at pains to say, it is about the deal,
not the day. We are working as much as we can to get a deal, but
we will not do so by sacrificing British interests. The deal has
to work for both the UK and India. I met the Indian Commerce and
Finance Ministers to ensure that we create a mutually beneficial
deal.
(Edinburgh North and Leith)
(SNP)
T3. Recent figures show that small businesses in the UK are owed
more than £32 billion in late payments. When coupled with a 40%
rise in energy costs and other inflationary pressures that I
mentioned before, that is making running small businesses in my
constituency impossible. On Tuesday, the EU set out its SME
relief package, which will help to tackle the problem. What is
the Minister doing to combat late payments for SMEs?(906390)
The hon. Lady raises an important point. That is why we launched
a payment and cash flow review earlier this year, which is due to
report very shortly. We are ambitious to make sure that small
businesses get paid more quickly through putting more pressure on
larger companies, the results of which will be announced very
shortly.
(Bosworth) (Con)
In August, I was lucky to be invited to the 70th anniversary of
Caterpillar being founded in my constituency. It was the first
place outside the US it set up a base in, and it now employs
1,300 people, making things such as the electric backhoe loader.
Will my hon. Friend congratulate Caterpillar on its investment
here, from where it exports across the world? Would she like to
come and see exactly what it does in Bosworth?
The Minister for Industry and Economic Security ( )
I join my hon. Friend, a great champion of Bosworth, in
congratulating Caterpillar on 70 years and 1,300 employees. That
is fantastic. I look forward to going along and having a go on
the electric diggers.
(Bradford South) (Lab)
T5. The loss of Wilko is devastating, in particular for the
thousands of workers who will lose their livelihoods. Will the
Secretary of State confirm that she will seek answers from Wilko
management about why clear warnings were ignored and the business
was driven into the ground, at the same time that shareholders
collected hundreds of millions in dividends? Will she meet me and
the GMB trade union to assure us that those basic failures will
not be repeated?(906392)
The hon. Member raises an important point. There is certainly, as
part of the administration process, an obligation on the
administrators to look at the circumstances that led to the
demise of that company and report to the Insolvency Service. I am
sure that she, like I, will be very interested in the outcome of
that investigation.
(Chipping Barnet)
(Con)
As chair of the all-party parliamentary group for events, can I
highlight the huge benefits the sector brings us in promoting
trade, exports and inward investment? Will the Department do more
to promote the UK worldwide as a great place to bring
international events, business meetings and conferences?
My right hon. Friend raises a good point. The events industry is
often overlooked, yet it is a great export opportunity. Those are
some of the things I am going to raise with the Board of Trade,
which is meeting next week. It is about promoting the best of
British internationally. Events is one of the areas we can take a
closer look at.
Ms Anum Qaisar (Airdrie and Shotts) (SNP)
T6. Airdrie and Shotts is home to some fantastic local
businesses. Recently, I had the pleasure of visiting Christie’s
bakery and sampling some of its delicious domino cake. I also met
Angela from Gin Blossoms, a florist on Alexander Street. Small
businesses across Scotland play a vital role in the local
economy, yet many are feeling the brunt of the rise in prices of
raw materials caused by increasing import-export costs. To be
frank, this is another direct impact of Brexit that Scotland did
not vote for. Can the Minister outline how the UK Government will
compensate businesses for the damaging losses that Brexit
continues to cause? (906393)
The hon. Member raises an important point about the cost of
living impact on businesses. These are global issues, not
domestic issues, and she should be clear on that with her
businesses. As I said in response to the question from her hon.
Friend, the hon. Member for Edinburgh North and Leith (), the Scottish Government
might look at increasing the generosity of the business rates
relief scheme, as the rest of the UK has.
(Waveney) (Con)
In the period leading up to 2021, sector deals were a very
effective means of boosting productivity, innovation and skills
in such sectors as aerospace, AI and offshore wind. What plans
are there to review, revitalise and extend those effective
public-private sector partnerships?
My hon. Friend raises a good point. Those sectors are critical
for the UK economy. While we did have plans around sector deals,
I would focus on the Chancellor’s five sectors that he thinks
will drive growth in the UK. I am happy to write to my hon.
Friend specifically about what impact those sectors will have in
his constituency.
(Paisley and Renfrewshire
North) (SNP)
T7. We know that phoenixing, unpaid-for services rendered,
puts a burden on legitimate SMEs, but it also puts a burden on
the taxpayer through unpaid taxes. That is acutely felt by all
hard-pressed local authorities which have significant
unrecoverable debt owed. Given that the Minister did not accept
my amendment to the Economic Crime and Transparency Bill, can he
explain what the Government are actually doing to prevent this
practice?(906395)
I am happy to engage with the hon. Member. I missed the earliest
part of his question, but we are providing an awful lot of
support for small businesses in various ways. I cannot remember
his amendment to the Bill, but I am happy to engage with him to
see what we can do to help.
(South West Bedfordshire)
(Con)
May we have an update on our proposals for a carbon border
adjustment mechanism?
The Treasury published a consultation in March on a range of
measures to mitigate carbon leakage. Potential policies include a
carbon adjustment mechanism on managing product standards. I am
sure it will report shortly.
(Manchester, Withington)
(Lab)
T8. Yesterday, I joined my hon. Friend the Member for
Cardiff West () on the all-party
parliamentary group on music for the launch of UK Music’s
impressive “Manifesto for Music”. The opportunities and risks of
AI are a key issue for the industry. Will the Government commit
to musicians having a voice and a place at the table for the AI
summit in November? (906396)
That is certainly something we can look to do. There are many
concerns about what will happen to copyright and intellectual
property once AI continues to advance in this area. The hon.
Member raises an important point. If he writes to me
specifically, I will make sure that the Secretary of State for
Science, Innovation and Technology gets to see that so we can
incorporate it.
(Lichfield) (Con)
I notice, by the way, that the Americans refer to it as the
trans-Pacific partnership, which I think is actually a lot
shorter and better than what we call it. Have there been any
discussions at all with the United States Administration to ask
whether they might eventually rejoin the partnership?
My hon. Friend is right. It used to be called the TPP, and it was
the Canadians who added the “comprehensive and progressive” to
make it quite a mouthful. The question of what the US wants to do
on trade deals comes up time and again. The US has said that it
will not sign any free trade agreements even though it was
initially considering the TPP. That is why the announcement of
the Atlantic declaration by the Prime Minister and President
Biden is key. That is our new vehicle to form a trade
partnership, and my Department is working actively across
Government and with our counterparts in the US to make sure that
that delivers for the UK.
(Denton and Reddish)
(Lab)
Many small businesses, particularly in the retail and hospitality
sectors, still rely on high street banking. Earlier this month,
the last bank in Denton town centre—the Halifax—closed. It was
not just the last one in Denton but the last one in the Denton
and Reddish parliamentary constituency, leaving small businesses
without access to high street banking. It is not good enough, is
it?
The hon. Gentleman makes an important point, and we urge banks to
listen to their customers about keeping their doors open. Of
course, we have the banking framework relationship with the post
office network, which provides deposit and cash facilities for
small businesses on high streets in Denton and other parts of the
country. We are determined to make that relationship more
generous to the Post Office to ensure the sustainability of the
post office network.
(Bristol East) (Lab)
Over the recess, I had the pleasure of visiting the historic
Harland & Wolff shipyard in north Devon, where we talked
about the potential for UK shipbuilding jobs linked to the
offshore renewables sector. Given last week’s disappointing
auction round, to put it mildly, what can the Minister say to
convince the shipbuilding industry that there is a future for it
in making those service vessels?
Ms Ghani
I was with Harland & Wolff just last night for London
International Shipping Week, and the firm is really excited about
the shipbuilding credit guarantee scheme, which provides
Government-backed loans of up to £500 million to ensure that
shipbuilding continues to thrive in the UK. That is a product for
which the industry has been asking for many years, and we have
been able to deliver it this year.
(Glasgow North) (SNP)
Ministers have spent the past hour or so telling us, in the face
of overwhelmingly contrary evidence, that Brexit is just the most
wonderfullest thing ever to have happened in the history of the
entire universe. Will the Secretary of State level up with us for
a minute and tell us whether there is anything at all about
Brexit that she finds regrettable, disappointing or
frustrating?
The hon. Gentleman is right—there is one thing that I find
regrettable, and it is the fact that he continues to bang on and
on about this even after the rest of the world has moved on post
the referendum. The fact is that we have left the EU and we are
not going back into it—certainly not under the terms that would
require us to do so. He should be focusing on the benefits of
Brexit, such as having more control over our laws, our borders
and our money, as well as being able to deregulate, including
through our smarter regulation programme. If he looked at that,
there might be opportunities he could deliver for the people of
Scotland.
(Middlesbrough) (Lab)
As the UK automotive industry wrestles with the looming increase
in the rules of origin thresholds, European Commission President
Ursula von der Leyen has just announced a probe into the flood of
cheaper Chinese electric cars coming into the market. Although
there has undoubtedly been much for the UK to welcome, with
announcements from Jaguar Land Rover and BMW, what additional
measures are the Government taking to ameliorate the impact of
cheaper and heavily subsidised Chinese imports?
That is an excellent question, because it raises something
fundamental. The transition to net zero will change the nature of
the UK supply chain and, as I said earlier this week, China poses
a systemic challenge here. The path to net zero creates a risk of
even greater reliance on China, especially when it comes to the
battery manufacturing needed for zero emission vehicles. We
cannot be naive about that. That is why I am working hard to
ensure not only that business competitiveness is at the heart of
our transition, but that British national interests come first.
We cannot depend on a single country. We must protect our
national security, so we are working with like-minded allies. My
hon. Friend the Minister for Industry and Economic Security has
spoken about our critical minerals strategy and we are working to
diversify and build those supply chains. That is what the
Atlantic declaration, which I mentioned earlier, is also about.
We are very aware of this point, but I think it is important to
reinforce it.
(Strangford) (DUP)
I thank the Secretary of State very much for the encouraging
positivity of her answers—[Interruption.] At least, most of us
are encouraged.
Great Britain is Northern Ireland’s main export market for
agricultural goods, accounting for some 64.1% of all exports.
What discussions has the Secretary of State had with the
Department of Agriculture, Environment and Rural Affairs back in
Northern Ireland to ensure consistent, free-flowing agri-trade,
given the complications caused by the Northern Ireland
protocol?
The hon. Gentleman is right. The first thing we want to see is
the restoration of the Executive. When I was in Belfast this
week, I spoke to Members of the Legislative Assembly from across
the parties, and this is something they repeatedly raise.
Businesses are telling us that the Windsor framework is helping,
and we are working closely with the ones that still have issues.
Such discussions facilitate business conversations and encourage
the restoration of the Executive, which would help to drive the
changes the hon. Gentleman wants to see.
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