Oral Answers to Questions

Kevin Hollinrake Excerpts

Thursday 29th June 2023 Commons Chamber

[Luke Hall (Thornbury and Yate) (Con)]

9. What steps she is taking to implement the Neonatal Care (Leave and Pay) Act 2023.

[The Parliamentary Under-Secretary of State for Business and Trade (Kevin Hollinrake)]

I thank my hon. Friend for being the foremost parliamentary champion for this important cause. The Neonatal Care (Leave and Pay) Act 2023 will give eligible employed parents up to 12 weeks of extra paid leave if their new baby is admitted to neonatal care, providing extra support at a very worrying time. We are keen to introduce the new entitlements as quickly as possible.

[Luke Hall]

I thank the Minister for that answer and his Department for its work on delivering the Neonatal Care (Leave and Pay) Act. It is fantastic news for so many parents across the country. We all want to see this entitlement delivered as quickly as possible. It really should be possible for the Department to deliver it for April next year, as there is time to deliver the required statutory instruments and guidance. There are examples of where His Majesty’s Revenue and Customs has been able to move forward quickly to deliver such changes. Will the Minister update the House on his work to drive through this important change, so that parents do not have to wait a second longer than necessary for this entitlement, which will support them during the most difficult and dark times in their life?

[Kevin Hollinrake]

My hon. Friend is absolutely right to press us on this. We need to do this as quickly as possible and we are keen, as I have said, to do that. Similar work does require updating HMRC IT systems and parliamentary consideration is, of course, required for secondary legislation. There are seven pieces of secondary legislation, and support is needed for employers and payroll providers to implement the changes. We cannot introduce this mid-year; it has to be at the start of the year. I therefore think it very unlikely that we will be able to do that before April 2025.

[Ian Levy (Blyth Valley) (Con)]

10. What steps her Department is taking to support the battery sector.

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[Mr Philip Hollobone (Kettering) (Con)]

11. What the value of exports to the EU was in (a) 2016, (b) 2019 and (c) the last year for which data is available.

[The Parliamentary Under-Secretary of State for Business and Trade (Kevin Hollinrake)]

The value of UK exports, measured in current prices, to the EU—including goods and services—was £247 billion in 2016, £298 billion in 2019, and £340 billion in 2022. The EU remains the UK’s largest export market, receiving 42% of UK exports in 2022.

[Mr Hollobone]

That is all very interesting, because, during the Brexit referendum, “Project Fear” told us that if we left the EU, millions of people would lose their jobs, our exports would collapse, and the economy would go into freefall. Here in 2023, with us outside the European Union, employment is at record highs and unemployment at record lows, the eurozone is in recession and we are not, and our exports to the EU are at record levels. Is it not now demonstrably true that we are always going to be better off out?

[Kevin Hollinrake]

As Churchill once said, the pessimist sees a crisis in every opportunity, but the optimist, which my hon. Friend is, sees an opportunity in every crisis. The UK’s total exports have recovered to pre-pandemic levels measured against 2018. In 2022 UK exports were £815 billion, up 21% in current prices and up 0.5% once adjusted for inflation. There is no doubt that UK exports are excelling and will continue to do so.

[Mr Speaker]

I call the shadow Minister.

[Seema Malhotra (Feltham and Heston) (Lab/Co-op)]

The truth is that in the year stated, exports to the EU fell as a proportion of total trade. Last month it was not inflation that halved, but exports of fruit to the EU. The British Chambers of Commerce has reported that more small and medium-sized enterprises are seeing exports falling than rising, and Britain has the lowest export rates in the G7. When a business tells me that it used to take three days for its products to reach shelves in Germany and now it takes 30, is it not fair to conclude that the Government have failed on the economy, have no plan to make Brexit work and are making businesses pay the price?

[Kevin Hollinrake]

That backs up my comment on pessimism; the hon. Lady is cherry-picking the worst possible figures she can find. In my conversations this week at the OECD conference on SMEs, nations around the world were crying out to do business with the UK, and indeed are doing so. Of course we are trying to tackle market barriers where they exist. We are leading a whole-of-Government effort to remove a hit list of 100 market access barriers, including those arising in Europe, to open up opportunity to UK exporters worth more than £20 billion. The most recent statistics, for the year ending March 2023, show that 45 barriers were resolved in Europe in that year, compared with 41 in the previous year.

[Amy Callaghan (East Dunbartonshire) (SNP)]

13. What recent assessment her Department has made of trends in the level of goods exports since the UK’s withdrawal from the EU.

[The Parliamentary Under-Secretary of State for Business and Trade (Kevin Hollinrake)]

On a similar theme to my previous answer, the UK’s total exports have recovered to pre-pandemic levels measured against 2018. In 2022, UK exports were £815 billion, up 21% in current prices and by 0.5% once adjusted for inflation.

[Amy Callaghan]

I thank the Minister for that answer. However, since the UK left the European Union its trade surplus with the rest of the world has declined from £46 billion to £5 billion. Was it this Government’s goal to wipe out the UK’s trade surplus when they committed to leaving the European Union?

[Kevin Hollinrake]

I say again that UK trade with the EU has recovered to pre-pandemic levels when measured in current prices, worth £772 billion in 2022, 14% higher in current prices than in 2018. We are making significant progress, not just with the European Union but with the rest of the world. We see our place in the world as being able to trade with the entire world, not just focusing entirely on the EU.

[Jessica Morden (Newport East) (Lab)]

15. What steps she is taking to help support the steel industry.

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[Jeff Smith (Manchester, Withington) (Lab)]

18. What steps she is taking to increase trade with European countries.

[The Parliamentary Under-Secretary of State for Business and Trade (Kevin Hollinrake)]

Europe remains a vital export destination for British businesses, with exports of £401 billion in 2022, an increase of 26% on the previous year in current prices. Only this week, I attended the OECD small and medium-sized enterprise conference, which dealt largely with international barriers to trade. We are determined to remove market barriers to make it easier, particularly for SMEs, to trade across borders.

[Jeff Smith]

On the subject of barriers to trade, not only is our world-leading cultural sector valuable in itself for our soft power, but it is an important part of our export trade. But our musicians face unnecessary red tape when trying to tour Europe. We need an EU-wide visa waiver for touring artists. The Secretary of State said earlier that her Department “works closely with musicians”, so what is it actually doing to resolve this problem?

[Kevin Hollinrake]

I know that my colleagues at the Department for Culture, Media and Sport are working hard with our European counterparts to try to ease the difficulties in that area—we recognise it as a problem. Many positive things are happening in current trade with the EU. Indeed, in 2022, the north-west—the hon. Gentleman’s region—exported £33 billion-worth of goods and £24.5 billion-worth of services, which is the area he is referring to. The north-west is the third largest area in the country for services exported to the EU.

[Mr Tanmanjeet Singh Dhesi (Slough) (Lab)]

19. What progress she has made on improving market access to the US.

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[Mr Speaker]

Can I say to the Front Benchers that a lot of Members are standing? These are topical questions, which are meant to be short. If you want a long question, come in early, please. Help me to help our Back Benchers.

[The Parliamentary Under-Secretary of State for Business and Trade (Kevin Hollinrake)]

We do support reform and are keen to take forward primary legislation when parliamentary time allows. In the meantime, there are measures that we can take through secondary legislation, which we are taking forward. We are also looking to take forward insolvency reform, which is something else that we committed to do.

[Greg Smith (Buckingham) (Con)]

T4.   The Abraham accords have ushered in unparalleled opportunities by lowering trade barriers in the middle east, so how can my hon. Friend maximise the trade potential of the 2030 road map for UK-Israel bilateral relations by engaging with the wider region?

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[Chris Stephens (Glasgow South West) (SNP)]

T5. I welcome the Scottish Government’s recent announcement that workers’ rights will be a key element of a written constitution when Scotland becomes an independent nation. That is in stark contrast to this place, where this Government have legislated for only seven of the 53 recommendations of the Taylor review. When will they legislate for the other 46?

[Kevin Hollinrake]

We are taking forward a number of reforms, as the hon. Member is aware. There is a private Member’s Bill, the Employment Relations (Flexible Working) Bill, which includes a day-one right to request flexible working, as well as the right to request predictable terms and conditions, which is one of the recommendations of the Taylor review. I think he should welcome those kinds of measures.

[Mr Philip Hollobone (Kettering) (Con)]

Kettering is the beating heart of the east midlands economy, especially in bespoke gentlemen’s footwear, with superb firms such as Loake, Cheaney, and Gaziano & Girling. Will the Government confirm that their free trade agreements and their efforts to reduce international trade barriers will help the local shoe industry in Kettering get on the front foot and take great strides forward?

[Kevin Hollinrake]

I was delighted to attend my hon. Friend’s business conference in north Northamptonshire. As part of that, we passed the Loake shop in Kettering, which is a world leader in shoes—in fact, I am wearing a pair today—and he offered to try to get me a pair at a discounted price, which I very much look forward to. There are great export opportunities through that.

[Mr Speaker]

I call the Chair of the Business and Trade Committee.