(2 days, 16 hours ago)
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Katrina Murray (Cumbernauld and Kirkintilloch) (Lab)
Elaine Stewart (Ayr, Carrick and Cumnock) (Lab)
The Minister for Trade Policy and Economic Security (Mr Douglas Alexander)
The UK’s recent trade agreements with India, the United States and the European Union confirm that, under this Government, Britain is back and open for business. These deals open markets and cut tariffs and will contribute to growth across the United Kingdom. For example, our deal with the EU—our closest and largest trading partner—contributes to our promise to reset our relations with our friends and neighbours in Europe. The sanitary and phytosanitary measures and the emissions trading system measures announced at the summit could increase UK GDP by nearly £9 billion by 2040.
Katrina Murray
Cumbernauld is fast becoming a centre for advanced manufacturing, with too many companies to name basing themselves there. Will the Minister set out how the UK’s trade agreements are helping such companies to expand into new markets, creating growth and jobs in places such as Cumbernauld? What steps are being taken to ensure that more Scottish manufacturers can take advantage of these deals?
Mr Alexander
I pay tribute to Cumbernauld’s advanced manufacturing capability. It is estimated that the UK-India free trade agreement will boost the whole UK economy by £4.8 billion and grow trade with India by over £25 billion annually. The Scotch Whisky Association forecasts £1 billion in extra exports and 1,200 new jobs. For Irn-Bru, which I understand is headquartered in my hon. Friend’s constituency, the agreement also removes India’s 33% tariffs on UK soft drinks. This India deal was delivered in the UK as a result of the hard work of our negotiators and the leadership of the Secretary of State, and it will benefit exporters and advanced manufacturers right across our country.
Elaine Stewart
Luxury knitwear products from Alex Begg, based in my Ayr, Carrick and Cumnock constituency, are a great example of quality Scottish exports, and it has a great reputation in leading fashion houses across the world. Like many businesses, Alex Begg is happy to see that good UK trade deals are back in fashion. Will the Minister join me in visiting Alex Begg in Ayr to hear about the importance of trade deals to local businesses with global ambitions?
Mr Alexander
I pay tribute to the craftsmanship and global ambitions of Alex Begg in Ayr. My mother’s side of the family are all from Ayrshire, so it would be a personal pleasure to visit Ayrshire, as my hon. Friend suggests. I would suggest that we could visit Alex Begg during the summer recess, but then again, as Billy Connolly once observed:
“There are two seasons in Scotland: June and winter.”
Clive Jones (Wokingham) (LD)
Yesterday the Chancellor championed the Government’s supposed trade deal with the United States, but that trade deal is not yet complete. We know that because no impact assessment has been published. Why are the Government popping the champagne prematurely, and have they done an impact assessment on any of the ongoing negotiations?
Mr Alexander
I am grateful that at least one of the Opposition parties accepts that there is a deal. The hon. Member is right to recognise that the implementation phase is what we are now relentlessly focused on. I am sure the House will be aware of the statement issued overnight by US Commerce Secretary Howard Lutnick, confirming that the US will expedite the agreed quota for car exports to the United States, reducing tariffs from 27.5% to 10%. The Government continue to work on this important deal.
Ellie Chowns (North Herefordshire) (Green)
The UK has a trade agreement with Israel that permits the import of goods produced in illegal settlements. Such goods are effectively proceeds of crime, given that settlements constitute illegal expropriation of Palestinian land. How can the UK justify this complicity in trade of illegally produced goods, and when will we finally see a ban on the import of any settlement goods?
Mr Alexander
The hon. Lady raises a critical issue. The British Government have a long-standing opposition to the illegal occupation of lands in the Palestinian territories, principally in the west bank. We have been clear and consistent that, on the grounds of international law, the responsibility lies with the Israelis to resolve these issues. On the points she raised, it is a significant and contentious enough issue. I will be happy to write to her, but it has been clear for many years that we oppose the settlements and continue to do so.
Dame Harriett Baldwin (West Worcestershire) (Con)
The gov.uk website, which has not been updated since 8 May, states that the Prime Minister negotiated the 25% steel tariff down to zero, but that is not right, is it? Steel faces a tariff of 25% today and runs the risk of a 50% tariff being imposed next month. Will the Minister take this opportunity to commit to updating the website, updating this House and updating steelworkers on the state of the negotiations?
Mr Alexander
I am very happy to consider the issues that the hon. Lady raises in relation to the website, but I can assure her that, whether it is the Minister for Industry or the Secretary of State for Business and Trade, the Government are in constant dialogue with the British steel industry. We will introduce a steel strategy, unlike her predecessors, and we have put serious money behind it. Thanks to the economic prosperity deal with the United States, the UK was the only country to be made exempt from the 50% tariffs on steel and aluminium that other countries around the world now face.
Sarah Olney (Richmond Park) (LD)
The Liberal Democrats have long called for a closer trading relationship with Europe after the disastrous negotiations by the previous Conservative Government. We welcomed last month’s new trade agreement, including an agrifood deal establishing a UK-EU sanitary and phytosanitary zone. The EU is our largest agrifood market, but since Brexit exports are down by 21% and imports are down by 7%. The introduction of an SPS agreement will provide welcome relief to many businesses by reducing costs through the removal of border checks and reducing many certificate requirements, such as for export health certificates. However, businesses and producers cannot plan without clarity, so will the Minister set out a timeline on when we can expect the SPS deal to be implemented?
Mr Alexander
I sympathise with a lot of what the hon. Lady has said. She is right to recognise that post Brexit we have broadly overperformed in services, relative to expectations, but significantly underperformed in terms of goods exports. That was in no small measure because a number of food and agriculture producers were buried in red tape and new paperwork. That is exactly why, as she suggests, the SPS deal is critical. Again, I welcome the fact that, for the second time today, we are being challenged to go further and faster on deals that we have delivered. I can assure her that, as I have said in relation to the United States, we take seriously our responsibilities on the implementation of SPS, but that places responsibilities on the British Government and, in this case, on the European Commission.
Alan Gemmell (Central Ayrshire) (Lab)
Gurinder Singh Josan (Smethwick) (Lab)
The Secretary of State for Business and Trade (Jonathan Reynolds)
This trade agreement is a huge economic win for the UK—the biggest trade deal since Brexit and the best deal that India has ever offered. As we have heard, it is estimated to increase bilateral trade by £25.5 billion, UK GDP by £4.8 billion and wages by £2.2 billion each year in the long run. It will mean new opportunities for businesses in every part of the United Kingdom.
Alan Gemmell
I draw the House’s attention to my entry in the Register of Members’ Financial Interests. I am having some import-export issues myself, as my first book, a provocative and racy thriller, is being published in India in July.
Alan Gemmell
It is called “30th State”.
May I congratulate the Secretary of State and former colleagues on this deal, which is great for whisky distilleries such as Lochlea in my constituency. When I was trade commissioner, Conservative Ministers were clamouring for a trade deal with India. Will my right hon. Friend tell the House how he has managed to do it one year after they failed miserably?
Jonathan Reynolds
I am extremely grateful for that question. I acknowledge my hon. Friend’s considerable expertise and service to this country through his commendable work as trade commissioner. I hope that he will advise us all on how to get a copy of his book—perhaps a copy could be placed in the Library. He is right to say that this is a great deal for every part of the UK. It is particularly strong for Scotland, given the iconic reduction in the tariff on Scotch whisky for the Lochlea distillery, and it is strong on Scottish salmon and services. These deals come down to a lot of work not just from the ministerial team but from the whole departmental team. I pay tribute to them and my officials for all their important work in this matter.
Gurinder Singh Josan
Last week I had the privilege of visiting A&M Pure Precision, a long-established local firm in my Smethwick constituency that specialises in designing, developing, testing and machining complex precision components in a range of materials for sectors including aerospace, automotive, motorsport, space and unmanned aerial vehicle engine systems. Given the importance of advanced manufacturing to the local economy, what assessment has the Secretary of State made of how the UK-India free trade agreement—and indeed other agreements—could create new opportunity for such firms and support wider economic growth in the west midlands?
Jonathan Reynolds
What a privilege it must be for my hon. Friend to represent a constituency with so many essential businesses doing such brilliant work for this country. On advanced manufacturing, he is right to say that a set of advantageous positions has been agreed, putting this country at a genuine competitive advantage, particularly in relation to sectors such as automotive and machinery, which I would expect his constituency to benefit from. India is traditionally a very protectionist economy, and it is the world’s fastest growing big economy. Whether it is for goods or services, A&M Pure Precision or the west midlands as a whole, there is so much good stuff here to celebrate.
Jim Shannon (Strangford) (DUP)
The Minister can expect an autographed copy of the book by the hon. Member for Central Ayrshire (Alan Gemmell) to be spinning its way towards his office as we speak.
I very much welcome the UK-India free trade agreement. It is good news, but Northern Ireland has a particular protocol issue. I know that the Minister is keen— I know it for a fact, because his answers are always good—that Northern Ireland can receive the same benefits as the rest of the United Kingdom: England, Scotland and Wales. Can he assure us that we in Northern Ireland will also be benefactors?
Jonathan Reynolds
I appreciate the hon. Member’s kind words. He will know that ensuring that everything my Department does works for Northern Ireland is a personal priority for me and for the ministerial team. In relation to exports, I can assure him that Northern Ireland will benefit from the advantageous position that the whole United Kingdom is in. We do have issues in making sure the more complex regulatory position from the protocol in Northern Ireland is working in the best possible way. There are very strong reasons for making that work better, if we can do so, and he has my commitment that we will seek to do that.
Mr Richard Quigley (Isle of Wight West) (Lab)
John Slinger (Rugby) (Lab)
The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)
The Government continue to support entrepreneurs through start-up loans via the British Business Bank and through programmes such as growth hubs in England and “Help to Grow: Management” training across the UK. Later this year we will publish our small and medium-sized enterprise strategy, one key element of which will be to signal our determination to do even more to champion our entrepreneurs, including through a new vision for business support, built around the coming business growth service.
Mr Quigley
You will be pleased to know that I do not have a book coming out, Mr Speaker. I am reading the one that my hon. Friend the Member for Central Ayrshire (Alan Gemmell) has written, and it is excellent, but I should probably say on his behalf that any likeness to characters in this place is entirely coincidental.
I thank the Minister for his response. I have seen at first hand his commitment to supporting Britain’s entrepreneurial spirit, but I worry that on the Isle of Wight unreliable cross-Solent transport is holding back entrepreneurs. Local businesses do not lack ambition; they lack a dependable link to their supply chains. Some are even considering leaving the island. Will the Minister meet me to discuss a long-term solution to cross-Solent travel that supports, rather than punishes, island businesses?
Gareth Thomas
I welcome my hon. Friend’s commitment to championing entrepreneurs on the Isle of Wight. We know that there is huge untapped potential in the entrepreneurial talent across the UK, and we are determined to do even more to unlock it, including on the Isle of Wight. As he will know, the Department for Transport, which leads on cross-Solent travel, has been clear that ferry services to and from the Isle of Wight are vital for islanders and for business. I know he has already had some contact with ministerial colleagues at the Department for Transport to discuss these issues, but if he thinks I can be helpful, I will be happy to meet him.
John Slinger
Towns like Rugby have a proud industrial heritage and an exciting present, and we are building a dynamic and sustainable business and industrial future. It was very welcome that the Chancellor revised the Green Book to make sure that investment and economic growth are spread more fairly across the country, beyond the major city regions. Can my hon. Friend set out what support may be available for towns like Rugby to attract and encourage people to start and grow their own businesses—for example, entrepreneurship hubs in towns rather than cities, so that they can play a role, and targeted tax reliefs for firms setting up in places like Rugby?
Gareth Thomas
I welcome my hon. Friend’s commitment to championing entrepreneurs in his constituency. He may know that we already have some 41 growth hubs across England, including the Coventry and Warwickshire growth hub, which provides a bespoke service for first-time entrepreneurs, tailored advice and support to start-ups and those wanting to scale up a business. We are determined to do more to help entrepreneurs and will set out our plans in our SME strategy, which is due to be published relatively shortly.
Mr Peter Bedford (Mid Leicestershire) (Con)
I recently met a load of entrepreneurs and small businesses in Mid Leicestershire who all have the same concern about the low VAT registration threshold of just £90,000. That is stifling their growth, because it adds a lot of bureaucracy and cost. What representations will the Minister make to the Chancellor to ensure that those small businesses can flourish?
Gareth Thomas
The hon. Gentleman will not be surprised to know that we receive representations on the VAT threshold from a number of small businesses, and we ensure that they are heard by Treasury colleagues. He will recognise that VAT raises a significant sum of money for the public finances, and given the mess that we inherited, we had to take some difficult decisions about those public finances to protect funding for hospitals in his constituency, and indeed other public services across the country.
Caroline Voaden (South Devon) (LD)
Recently imposed general product safety regulations have added yet another layer of cost and complexity to exports to the European Union. That is particularly hitting entrepreneurs and microbusinesses, many of which have had to end exports to their EU customers. Did the Department have any discussions with its EU counterparts during recent trade negotiations about exempting small and microbusinesses from those rules? If not, is it doing any work to support small businesses in particular, which have had to end exports to EU customers because of the new regulations?
Gareth Thomas
We have been talking to businesses about what they can do in the light of the new regulations, and we are in the process of improving significantly the range of support available to businesses online. The Secretary of State recently set out our plans for a new business growth service, which will significantly improve the speed and quality of advice that businesses can get from the Government.
Harriet Cross (Gordon and Buchan) (Con)
Jerome Mayhew (Broadland and Fakenham) (Con)
The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)
The Employment Rights Bill is the next phase of delivering our plan to make work pay. The Bill is both pro-worker and pro-business, and will see significant benefits for employers. For example, increased worker wellbeing could be worth billions of pounds a year. The Bill will also reduce workplace conflict, which, according to a report published by ACAS in 2021, costs employers around £30 billion a year. The Bill will level the playing field so that those employers who are engaged in good business practice are not forced into a race to the bottom.
Harriet Cross
Yesterday, Scotbeef announced the closure of its abattoir in Inverurie in my Gordon and Buchan constituency, with 90 job losses and another blow to agriculture in north-east Scotland. It blamed rising costs. In April the increase to national insurance contributions came in—a huge tax rise on businesses—and the Office for Budget Responsibility has shown that 109,000 jobs were lost in May, which was the highest monthly figure in five years. It cannot be a coincidence that that happened the month after the NICs increase. How is the Minister’s Department supporting businesses and jobs in sectors such as agriculture, which are having to deal with huge cost increases because of his Government’s decisions?
Justin Madders
I am very sorry to hear the news from the hon. Lady’s constituency. It is the case that 667,000 more people are in work compared with this time last year, and 300,000 fewer people are economically inactive. I am rather surprised that she mentions the national insurance hike, because the Leader of the Opposition was on the radio this morning and was repeatedly asked to confirm whether that hike would be reversed. She failed to do so, and it seems to me that the Opposition are in opposition to themselves.
Jerome Mayhew (Broadland and Fakenham) (Con)
The Minister seems to be in denial. As a former entrepreneur, I visit lots of businesses in my constituency, and I talk to them about their fears. Not a single one has anything positive to say about the Employment Rights Bill—indeed, they are concerned that it will reduce employment, not increase it, and it has been estimated that it will increase costs by more than £5 billion. The Minister has been asked this before, so he has had a lot of time to think about it: can he name a single business that publicly supports the Employment Rights Bill?
Justin Madders
I can certainly name a number. I also refer the hon. Member to Hansard on Tuesday 11 March, column 953, where I named a small business. A number of other businesses have been in support: Centrica, Co-op, Richer Sounds, Nationwide, Adept, One+All, Pedal Me, Inkwell—there are many businesses that we talk to on a regular basis and that understand that treating staff well is a good thing for those businesses. It is a pro-growth, pro-worker measure.
Luke Myer (Middlesbrough South and East Cleveland) (Lab)
On 12 June 1996, a Conservative Minister stood at the Government Dispatch Box and said:
“Labour’s minimum wage would cost hundreds of thousands of jobs”.—[Official Report, 12 June 1996; Vol. 279, c. 248.]
They were wrong then and they are wrong now. With particular focus on the Teesside region, what steps are the Government taking to bring more well-paid jobs to people to make sure they can spend more in our local economy?
Justin Madders
My hon. Friend is absolutely right: there are so many echoes of the minimum wage debate, it is uncanny. As time has shown, the minimum wage has raised living standards in this country and it is something we are very proud to have implemented. We are looking to bring more investment across the economy. Recent surveys have shown that business confidence is increasing as a result of decisions made by this Labour Government.
Greg Smith (Mid Buckinghamshire) (Con)
As my hon. Friend the Member for Gordon and Buchan (Harriet Cross) made clear earlier, the ONS statistics are very clear: 109,000 fewer on payroll in May alone and 276,000 fewer since the autumn Budget. As UKHospitality points out, the NICs changes were
“felt most intensely by foundational sectors like hospitality,”
which “necessitates an urgent review”.
My question to the Minister is simple: where will his red line sit? How many more jobs have to come off payroll before the Department for Business and Trade will stand up to the Treasury on this? Another 100,000? A million? Where is the line?
Justin Madders
Again, it is interesting that those on the Conservative Front Bench do not seem to be in agreement with their own leader any more about the national insurance hikes. I will just point out some statistics to the hon. Member: the International Monetary Fund has predicted that growth will increase this year and the Lloyds business barometer found that business confidence was up. We are putting money back into people’s pockets and investing in this country. We are doing things that the Conservatives failed to do for 14 years and that is why they are out of power.
Liz Twist (Blaydon and Consett) (Lab)
The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)
Just last month, we relaunched the Board of Trade to focus on the targeted support and help that small businesses need to take up opportunities from the UK’s free trade agreements. The recent trade deals with India, the United States and the European Union aim to reduce red tape, improve customs processes, slash tariffs and open new markets for small exporters up and down the UK.
Liz Twist
Small businesses—like Rezon in my constituency, which makes groundbreaking brain protection sports headwear—are working hard to grow and export, but it is often hard to know where to get the right advice. What practical support are the Government giving to small businesses to help them export and take full advantage of those trade deals?
Gareth Thomas
I thank my hon. Friend for her question and for the opportunity to attend a wide-ranging roundtable with local businesses in her constituency, at the end of last year. Our new workshop, “Introduction to Export”, is in collaboration with the North East combined authority, and is aimed specifically at helping local small businesses that are thinking about exporting to new markets for the first time. A range of other support is available on the Government website, and that will be significantly improved as a result of the coming business growth service.
Aphra Brandreth (Chester South and Eddisbury) (Con)
The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)
We have announced plans to reform business rates, launched high street rental auction powers for councils that will help businesses to access currently vacant properties, worked with industry to open over 150 banking hubs, and introduced the Crime and Policing Bill to provide retailers with greater protections from assault and shoplifting. Our forthcoming small and medium-sized enterprise strategy will set out our further plans to help businesses on the high street and beyond.
Aphra Brandreth
Chester South and Eddisbury is home to some truly special high streets, lined with independent shops and pubs that play a vital role in the life of our communities. I have spoken to local business owners, especially in hospitality, who are already feeling the pressure. Following the spending review, the chief executive of UKHospitality said that
“the overwhelming challenge holding back hospitality from meeting its potential is the current tax burden”.
Does the Minister accept that unless action is taken to ease the burden on high street businesses, especially in hospitality, the Government risk undermining the very communities they claim to support?
Gareth Thomas
I say gently to the hon. Lady that when she had the conversations that she says she had with businesses in her constituency, I am sure she pointed out the huge economic mess that this Government inherited and the £22 billion black hole in public finances. That is why the Chancellor of the Exchequer had to make some very difficult decisions in last year’s Budget. We have set out a series of plans that will make a genuine difference on our high streets, including new opportunities to persuade landlords to open up premises for rent. We will set out further plans in the coming small business strategy, and our industrial strategy will also help to generate growth in high streets and beyond.
Dave Robertson (Lichfield) (Lab)
The town of Burntwood in my constituency has a high street that has been struggling after 14 years of neglect by the Conservatives. One of the things holding Burntwood back is the lack of access to high street banks. Will the Minister update us on what the Department is doing to support access to banking in our high streets as a key pillar of driving the regeneration of high streets like the one in Burntwood?
Gareth Thomas
My hon. Friend is absolutely right to focus on the need for face-to-face banking in communities and high streets up and down the country. We are committed to working with the banks to roll out 350 banking hubs by the end of this Parliament, but we also think that the Post Office can do more to help to improve access to banking services. On the particular issue in his constituency, if it would be helpful, I would be very happy to sit down and talk to him about what else he might be able to do to secure a banking hub for his constituents.
Greg Smith (Mid Buckinghamshire) (Con)
The Retail Jobs Alliance is very clear in its warning that the Government’s changes to business rates will
“accelerate the decline of high streets, reducing footfall…and creating a cycle of economic downturn.”
That letter was also signed by the Union of Shop, Distributive and Allied Workers—a Labour-affiliated trade union. Once again, the Minister and the Department for Business and Trade have a choice. Will they stand up for high street retailers, actual employers and even their own affiliated trade union, or will they just go along with Treasury diktat?
Gareth Thomas
Once upon a time, the Conservatives supported business rates reform to help the high street; the hon. Gentleman now seems to be shifting his party’s policy. Indeed, time after time his Government promised that they would reform business rates, but one of the reasons they lost the confidence of British business at the last election was because they did not act to reform business rates. We have said that we will introduce permanently lower business rates for retail, hospitality and leisure. The Chancellor of the Exchequer set out our initial thoughts on that in the Budget in October, and we will publish an update on where we are on that issue in the coming months.
Greg Smith
We support business rates reform, but when Labour’s own trade union says that its plan is not going to work, Ministers should really sit up and listen.
Let me turn to another issue affecting our high streets: shoplifting—which continues to devastate many high street retailers. I see that in my own constituency in high streets in Princes Risborough, Wendover and Great Missenden. How is the Minister actively engaging with the Home Office, police and crime commissioners and police forces to move shoplifting up the agenda across the board, just as my home force of Thames Valley has done with its Disc scheme? Before he comes back with police numbers, let me tell him that there are more police in Thames Valley than ever before, let alone since 2010. Just talking the talk on numbers is not enough. What is he going to do proactively to make this issue go up the agenda?
Gareth Thomas
I think the hon. Gentleman, in his own way, is congratulating the Government on increasing police numbers in his constituency, and he is certainly right to do so. We have committed to an extra 3,000 police officers over the course of this financial year and a total of an extra 13,000 by the end of this Parliament. We are also taking action to end the immunity that his party introduced for shoplifters and taking steps to increase the powers that the police have to take action when shoplifters and others are violent against retail staff.
Laura Kyrke-Smith (Aylesbury) (Lab)
Joe Powell (Kensington and Bayswater) (Lab)
Melanie Onn (Great Grimsby and Cleethorpes) (Lab)
The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)
Our small business strategy will be published later this year and will set out our plans to champion entrepreneurs, improve access to finance and help small and medium-sized enterprises to reach more markets and adopt new technology. As I alluded to earlier, we are developing our plans for our new business growth service, simplifying access to support and advice for small businesses. We are also tackling the challenge of late payments, including the introduction of a new fair payment code and upcoming legislation requiring large companies to report annually on their payment performance.
Laura Kyrke-Smith
In Aylesbury town centre, we have some fantastic businesses, from Darlington’s to the Rockwood pub and Nafees bakery. They provide an amazing service to the community, but with issues such as traffic, parking and antisocial behaviour, they can struggle to get customers into town and through their doors. I congratulate the Minister on the work he is doing, but can he tell us more about how his small business strategy will support our high streets and town centres, like Aylesbury, to thrive?
Gareth Thomas
I very much enjoyed my visit to my hon. Friend’s constituency and the roundtable we had with some of the fantastic businesses there. I very much hope that Conservative-controlled Buckinghamshire council will finally get its act together and sort out some of the traffic and parking issues she mentioned. We will set out our plans to do more to help small businesses across the country, including in Aylesbury, in our SME strategy. One particular measure that we will be able to take action on is to improve access to finance for small businesses, following the Chancellor of the Exchequer’s significant increase in the capacity of the British Business Bank yesterday.
Joe Powell
Small businesses on our high streets across my constituency, from Earl’s Court Road to Queensway, Notting Hill Gate and Portobello Road, are fed up of being blighted by candy shops, low-grade souvenir shops, Harry Potter shops and even barbershops, with accusations of VAT and business rates evasion and even links to money laundering and serious organised crime. Can the Minister outline what steps the Department is taking, in conjunction with the Minister responsible for high streets, His Majesty’s Revenue and Customs and the National Crime Agency, to crack down on these operations and create a legitimate level playing field for our small businesses?
Gareth Thomas
I recognise that my hon. Friend has been very persistent on this issue, and he is entirely right to be so. We have been working with colleagues in the Home Office and the National Crime Agency to take action to crack down on illegitimate businesses that threaten to undermine the legitimate ones that exist on all of our high streets. In March, the National Economic Crime Centre co-ordinated a three-week crackdown on barbershops and other cash-intensive businesses where there were concerns, visiting almost 400 premises and securing freezing orders over a series of bank accounts totalling more than £1 million.
Melanie Onn
I thank the Minister for his answer, but I really do need to press him, because my constituents in Great Grimsby and Cleethorpes are as fed up as those of my hon. Friend the Member for Kensington and Bayswater (Joe Powell) with seeing high streets dominated by dodgy vape shops and unlicensed barbers. While some of those businesses are legitimate, a recent BBC investigative report shows that many are involved in money laundering and organised crime. Obviously, the Minister is aware of the situation, but is he working closely with the Home Office to try to tackle this blight? We probably need a national strategy, not a three-week operation.
Gareth Thomas
My hon. Friend is right to say that this is not just an issue for our high streets, such as those mentioned by our hon. Friend the Member for Kensington and Bayswater (Joe Powell), but a concern up and down the country. The National Crime Agency and Home Office colleagues are seeking to take action against illegitimate businesses, and my hon. Friend will recognise that the announcement in yesterday’s spending review of additional police officers, with more to come over the spending review period, will help us with that activity.
Graham Stuart (Beverley and Holderness) (Con)
If the book that the hon. Member for Central Ayrshire (Alan Gemmell) has written is a political thriller about fighting for small business, I am sure it features five heroes on the Government Front Bench doing everything they can to promote small business. But readers will ask, “Who is the villain of the piece?” Is it not obvious that it is the Chancellor of the Exchequer, who is doing everything possible to undermine business, with 276,000 people having lost work since the autumn statement, and 109,000 in the month of May alone? When will the Ministers—the heroes of this story—fight against the Chancellor, who is getting so much so wrong?
Gareth Thomas
It is a little while since I have been called a hero by the right hon. Gentleman, but I am glad that I have finally had some recognition from him. I do not think that the Chancellor of the Exchequer is a villain at all; indeed, I think the spending review she announced yesterday will help to unlock investment in our high streets and our small businesses up and down the country. The record investment in research and development and in infrastructure, and the additional capacity for the British Business Bank, will help to unlock billions of pounds of new investment and many more job opportunities across the country.
Victoria Collins (Harpenden and Berkhamsted) (LD)
Charlotte from Harpenden and her family run Gatwards, one of the oldest family-run jewellers in the UK. It is a small business that has been there for so many years, but it has been hit by the rise in national insurance contributions and changes to business property relief and inheritance tax, meaning that it will shelve plans to hire staff and the premises are in peril. Will the Minister work with the Treasury to review the impact of these policies on small businesses and our high streets?
Gareth Thomas
We will always work across Government with the Treasury to look at issues that affect businesses, whether on the high street or beyond. In the discussions the hon. Member has had with the particular businesses in her constituency, I am sure she will have noted our plans to reform business rates, which will help many businesses in the retail, hospitality and leisure sector. She will also have noted that more than 40% of businesses will pay no business rates in the coming year.
Lincoln Jopp (Spelthorne) (Con)
Lky7 Sports is a small cycle and nutrition business in Ashford in my constituency. It has been hammered by the loss of small business rate relief, and wrote to me yesterday saying:
“The Government say that they are helping small business, but this is a joke when our business rates have gone from nothing to £1,800. We are seriously considering closing the shop down.”
What advice does the Minister have for that boss?
Gareth Thomas
I am sure that the hon. Gentleman— I say this gently to him—will have explained to that particular business that we inherited a very difficult economic situation because of the decisions that his party took, including on tax, but our small business strategy will set out more plans to help small businesses, such as the one in his constituency. Our business rates relief package will make a significant difference for retail, hospitality and leisure. [Interruption.] He asks when we will publish the small business strategy—it will be shortly.
Alison Hume (Scarborough and Whitby) (Lab)
Kenneth Stevenson (Airdrie and Shotts) (Lab)
The Minister for Industry (Sarah Jones)
The Department is making good progress developing our industrial strategy—a strategy that has been called for by industry for many years and opposed by the Conservatives for ideological reasons. We have launched our consultation, we have met industry and thousands of businesses across the land, and we are finalising our report, which we will be publishing shortly. The spending review announcements yesterday on investment will add to the business growth in the country that we all want to see.
Alison Hume
British bus manufacturer Alexander Dennis announced yesterday that it is consolidating its operations in the UK to its Scarborough facility, placing 400 jobs in Falkirk at risk. The company is warning about competitive imbalance, the increasing market share of Chinese bus manufacturers and an absence of incentives for British-built vehicles. How are the Government planning to support British bus manufacturers as part of our industrial strategy?
Sarah Jones
This is a challenging and difficult time for the workers and their families at Alexander Dennis, as well as for the local area. As Members would expect, I have engaged extensively with ADL’s senior executives alongside the Secretary of State for Scotland, the Department for Transport and the First Minister of Scotland to discuss what we can do to support. We wrote jointly to the company, offering to support it in any way we can. There are many issues that we tried to talk through with its representatives. Bus manufacturing sits with the Department for Transport, so it is taking the lead, but we are working together to do what we can.
Kenneth Stevenson
Do the Secretary of State and the Minister agree that the industrial towns and villages that make up Lanarkshire must be central to any modern industrial strategy? Will they meet me, potentially in Airdrie and Shotts, to hear more about the excellent skills and potential that exist throughout the constituency that could undoubtedly contribute to their and this Government’s ambitious work?
Sarah Jones
Of course, our industrial strategy will speak to the whole country about the way that we are supporting businesses to grow and thrive. We have identified eight growth-driving sectors as the arrowheads of growth, but there are also policies that we believe will lift the whole country. I would be delighted to meet my hon. Friend. I congratulate him on the support that the local community showed in the recent Hamilton by-election, and look forward to talking to him further.
Sir Ashley Fox (Bridgwater) (Con)
As part of the Government’s industrial strategy, will the Minister and her colleagues in the Department for Science, Innovation and Technology carefully consider Somerset’s bid for an artificial intelligence growth zone? Its unique advantages—the Gravity local development order, and its existing connections to the grid—make it an ideal location to boost jobs and growth.
Sarah Jones
We have very big ambitions for AI and growth across the country, and I am very happy to talk to the hon. Gentleman about his proposals. I am sure that he has already talked to colleagues in DSIT, but I am very happy to take this matter further.
Max Wilkinson (Cheltenham) (LD)
Cyber-security will be a key pillar in the industrial strategy. That is welcome news in my constituency of Cheltenham, which is already a centre of excellence in the sector. We are on the cusp of unlocking £1 billion-worth of investment at the Golden Valley development in west Cheltenham. I know Ministers are aware of that, as are their colleagues in many other Departments. A planning application is expected very soon. Will Ministers join me in urging the two councils—the borough council and the county council—to get on with it and unlock that investment, which will bring growth to Cheltenham and the nation and, crucially, support defence as well?
Sarah Jones
As the hon. Gentleman will know, we are doing what we can to unlock the planning challenges that people have faced for many years in a whole range of areas. We are introducing legislation to do that, and making several changes. I obviously cannot comment on specific planning proposals in his area, but he should be reassured that we are doing what we can to encourage growth.
Dame Harriett Baldwin (West Worcestershire) (Con)
We have been promised a modern industrial strategy for nearly a year. First, it was going to be with us in the spring; then it was going to be published at the spending review; and now it will be here “shortly”. The industrial strategy seems to be a strategy to clobber industry with higher taxes and higher business rates. Will the modern industrial strategy have greater longevity than the Office for Investment? It was announced in October, and we were not given an update until last Thursday, when it launched. Yesterday, we were told in the spending review that it is now being restructured. What is the future for the Office for Investment?
Sarah Jones
I can guarantee the hon. Lady that our industrial strategy will have a longer shelf life than hers did; I think it lasted 18 months—I am not entirely sure. We forget, because it did not have much of an impact. We have worked with all industries across the country to put together a comprehensive package that will make it easier to do business in the UK, and support our city regions and clusters across the country, where we have excellent industry. It will turbocharge the eight growth sectors, and it will make the Government more agile in interacting with business. That is why we are reforming the Office for Investment, as we have always said we will. It is now a significantly more substantial organisation, and will give significantly more support. The hon. Lady should look at—
Mr Speaker
Order. I am really bothered, because we have only got to question 8, and I still need to call the Liberal Democrat spokesperson.
Sarah Olney (Richmond Park) (LD)
The Liberal Democrats welcome yesterday’s announcements from the Chancellor on investment in public infrastructure projects. However, the general secretary of the Prospect trade union has warned that the UK lacks the skilled workers required for the new defence and nuclear projects outlined by the Chancellor. Similarly, Make UK and the Federation of Small Businesses have highlighted that a shortage of skilled workers would be a critical stumbling block for growth. As we continue to await the much-anticipated industrial strategy, why are the Government moving funding away from level 7 apprenticeships, when we know that they support social mobility? More broadly, why did they not seize the opportunity in yesterday’s statement to commit to fixing the apprenticeship levy, to ensure that money is invested in skills and training?
Sarah Jones
Forgive me for my long answers, Mr Speaker, but there is a lot to talk about in the industrial strategy, and I like to talk about it. The hon. Lady raises an important point. There is a significant skills challenge, and we will not shy away from it. Yesterday, £1.2 billion for skills was announced in the spending review. We have announced £600 million for construction skills, because that is a big issue for building the infrastructure that we need. We know we need to go further, and we are working closely with industry on how we can use the resources we have to recruit the welders, engineers—
Mr Speaker
Order. If there is so much to say, the Minister should bring forward a statement, or let us have a debate on this very important subject. I do not know how she will explain to MPs that they will not get in, because I am now going to topicals.
Laura Kyrke-Smith (Aylesbury) (Lab)
The Secretary of State for Business and Trade (Jonathan Reynolds)
Since our last oral question time, we have secured three major trade agreements to boost British exports and drive growth across the UK. This Government are delivering trade deals that benefit businesses and put money in workers’ pockets, and are securing deals that other Governments promised, but failed to deliver. We have an agreement with our largest trading partner, with the biggest economy in the world, and with the fastest-growing big economy in the world. As we have heard, the India deal alone will boost wages by £2.2 billion a year when fully operational. Our new strategic partnership with the EU could add nearly £9 billion to our economy by 2040, and the UK was of course the first country to secure a deal with President Trump. I can also confirm that in the past week, we have hosted delegations from the US and China, in order to assist them in their negotiations with each other. As I have always said, under this Government, the UK will be the most open and best-connected economy in the world.
Laura Kyrke-Smith
I congratulate the Secretary of State on his excellent work. The Government’s decision to suspend their trade negotiations with the Israeli Government last month was absolutely the right one, but some constituents have been in touch in confusion after trade envoy Ian Austin’s visit still went ahead. Can the Secretary of State affirm that this Government’s position is that we will not be deepening our trade ties with the Israeli Government while the situation in Gaza and the west bank remains so appalling?
Jonathan Reynolds
I am grateful to my hon. Friend for that question. Yes, I can reaffirm that position. As she says, the Foreign Secretary announced on 20 May that we have suspended negotiations on an upgraded free trade agreement with Israel in response to the egregious actions of the Netanyahu Government in Gaza and the west bank. Of course, the UK has existing business relationships with Israel that are not affected by that decision, and we maintain trade envoys with both Israel and the Palestinian territories. What we all want is peace, a two-state solution and a strong UK relationship with both states.
Dame Harriett Baldwin (West Worcestershire) (Con)
Postmasters who were hit by the Horizon scandal will be concerned to hear Sir Alan Bates describe the compensation process as a “quasi-kangaroo court”. Can the Minister reassure postmasters about the redress that they are due, and reassure taxpayers about the redress that he is seeking from Fujitsu?
The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)
I thank the hon. Lady for her question, and she is absolutely right to draw attention to the continuing need to speed up compensation to sub-postmasters. Since we came into government, we have increased fourfold the amount of compensation paid to sub-postmasters, but there is an awful lot more to do. On the issues that Sir Alan Bates raised, the hon. Lady will know that under the group litigation order scheme, through which his compensation issues are being addressed, there are various independent points on the journey at which to consider the offer—
Mr Speaker
Order. If Ministers do not want Members to get in, please will they say so, because they are taking all the time from Back Benchers, which is really unfair to them? Back Benchers have put forward their names and come here to ask questions, and Ministers are just enjoying themselves too much.
Mark Ferguson (Gateshead Central and Whickham) (Lab)
The Minister for Industry (Sarah Jones)
I completely agree with my hon. Friend. I know that he will do what he can to promote his constituency, and the extra funding for the British Business Bank will really support his area.
Graham Stuart (Beverley and Holderness) (Con)
Jonathan Reynolds
I understand the prominence of the issue in the right hon. Member’s constituency. We already import a significant amount of ethanol from the US: 860,000 tonnes of bioethanol. We recognise the competitive pressures that the US trade deal will bring—it is obviously not yet in operation—and have met the companies affected and continue to negotiate with them. They are already very distressed and lose significant amounts of money, so what they really need are regulatory changes from the Department for Transport for the market as a whole. I can assure him that we are working on that.
Chris Bloore (Redditch) (Lab)
Gareth Thomas
I thank my hon. Friend for his question. Through our small business strategy, we will set out very shortly further plans to support businesses to get on the high street. The increase in money in the British Business Bank, announced yesterday by the Chancellor, will also significantly increase access to finance for such businesses.
Jessica Toale (Bournemouth West) (Lab)
The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)
I thank my hon. Friend for her question; she is absolutely right to raise it. UK product safety law is clear: all products must be safe before they are placed on the market. As she sets out, goods sold via online marketplaces are becoming a significant problem. That is why we introduced the Product Regulation and Metrology Bill, which will allow the introduction of clear obligations for e-commerce businesses, in order to ensure consumer safety and a level playing field. We intend to consult on product safety requirements for online marketplaces very shortly after Royal Assent.
Jim Shannon (Strangford) (DUP)
Jonathan Reynolds
I absolutely accept that invitation, and I can tell the hon. Gentleman that we are already extremely involved, as is the Minister for Industry. We welcome what has happened with Airbus, but we are focusing a great deal on the RemainCo and the issues there.
Olivia Bailey (Reading West and Mid Berkshire) (Lab)
Last year, the Secretary of State joined me on a visit to our vibrant high street in Pangbourne. I recently met the owner of one of those businesses, Nino’s, a fantastic trattoria and deli. One issue that Nino raised with me was the regulatory burden on his business. How will the Government’s small business strategy deal with that key challenge, and how will it support small businesses like Nino’s, so that they can continue to thrive?
Jonathan Reynolds
We had a wonderful visit about a year ago, and I hope the Pangbourne Cheese Shop is still going strong. Yes, the regulatory burden on small business is a huge area of attention for this Department; there is the business growth service, our action on late payment, and our incentivising of digitisation and e-invoicing.
Andrew George (St Ives) (LD)
Our farmers and growers can survive only if there is a functioning supply chain, but since the creation of the Groceries Code Adjudicator, they complain bitterly about continuing poor practice and the risk of de-listing. Does the Minister not agree that it is time to beef up this organisation, and to amalgamate it with the Agricultural Supply Chain Adjudicator?
Justin Madders
We had a Westminster Hall debate last week in which a number of these issues were raised. The hon. Gentleman will know that we are undertaking our fourth review of the GCA. I encourage him and other hon. Members to contribute to it. We are considering the points made in that debate, and we will welcome any comments in the review.
Liam Byrne (Birmingham Hodge Hill and Solihull North) (Lab)
I very much welcome yesterday’s investment in UK energy abundance, but as our Committee pointed out on Friday, the success of the industrial strategy will depend on a plan to cut industrial energy costs now. When the industrial strategy is published, will the Secretary of State reassure us that there will be a plan to ensure that UK energy prices are internationally competitive?
Jonathan Reynolds
I thank my right hon. Friend and the Select Committee for all their work in this area. He knows my view from the evidence that I have given. The significant increase in industrial energy prices under the previous Government is a significant issue for our competitiveness—and yes, that is something that we seek to address.
John Cooper (Dumfries and Galloway) (Con)
When it comes to bus manufacturer Alexander Dennis and the jobs at risk there, there is not an elephant in the room—there is a Chinese dragon. The company is in competition not with commercial organisations from China, but with entities of the Chinese state. What representations will the Secretary of State make to the Prime Minister in an attempt to level a playing field that is currently about as flat as the Galloway hills?
Jonathan Reynolds
I firmly agree with the hon. Gentleman that a level playing field is not just an economic necessity, but a matter of economic security and production in western economies like our own. Of course, if a company has a specific case to make, it should make the representation to the Trade Remedies Authority directly—I have that power, but it would usually come from industry. If the company has a specific case to make, the hon. Gentleman should encourage it to make that representation.
Dr Marie Tidball (Penistone and Stocksbridge) (Lab)
It was fantastic to hear the Government’s commitment yesterday to making the UK a defence industrial superpower. At its peak, Stocksbridge Speciality Steels, in my constituency, produced 15% of global defence and aerospace steel, which is essential to our national security. What work is the Secretary of State doing to secure Stocksbridge Speciality Steels so that this valuable steel asset can be used to maintain our national security?
Jonathan Reynolds
My hon. Friend knows that I believe the workers at that mill in her constituency are a national asset and that I want them to have a strong future as part of our overall steel strategy. We are closely monitoring the specific situation there, which colleagues will be aware of, and are determined to find the outcome that she and I would want to see.
Chris Law (Dundee Central) (SNP)
The Prime Minister routinely states his unwavering support for Ukraine, yet as a result of UK Government inaction, British businesses continue to bankroll Putin’s brutal war on a colossal scale. Since the beginning of Russia’s full-scale invasion in 2022, a whopping £205 billion of Russian fossil fuel exports have been shipped by our own UK-based maritime companies or by ships with our own UK-issued insurance. Astonishingly, one company, Seapeak, has carried almost a quarter of Russia’s liquefied natural gas exports. Can the Secretary of State give us an update on what the Government are doing, and deal with this immediately?
Jonathan Reynolds
I am concerned by the figures the hon. Gentleman raises; if he writes to me, I will look into that immediately. We have taken extensive action to sanction not just individuals, but the shadow fleet, as it is described, transporting Russian fossil fuels, and are willing to take any action necessary.
Kirith Entwistle (Bolton North East) (Lab)
Yesterday, the Dad Shift campaign organised hundreds of dads to come to Parliament to campaign for better paternity leave. Does the Secretary of State agree that better paternity leave can give dads more security to spend more time with their babies, support the development of children and help gender balance in the workplace? Will he tell the House whether the issue will be covered in the upcoming parental leave review?
Justin Madders
I am sorry that I was not able to meet the Dad Shift campaigners yesterday, although I have met them previously. I can assure them and the House that the Government are committed to ensuring that parents receive the best possible support to balance their work and home lives, and we recognise that parental leave and pay entitlements play a key role in that. We know that the leave system needs improving, which is why we are committed to conducting a review, which will look at paternity leave and pay and the length of leave available to fathers and partners. More detail on the review will be set out before the summer recess.
Joe Robertson (Isle of Wight East) (Con)
The chief executive of UKHospitality estimates that there will be an extra £1 billion of costs on employers for new workers—774,000 of them—coming in to the national insurance contributions regime, on top of £2.4 billion in other costs. If, by the next Budget, it turns out that the previous Budget is crushing the hospitality sector, will the Government consider tax reliefs in order to power our hospitality industry?
Jonathan Reynolds
The hon. Gentleman knows the Government, and the Treasury in particular, monitor the impact of all taxation. I have to be frank with colleagues: I have no idea what the Conservatives are trying to tell us today. They seem to want more spending and lower taxes—it seems like Liz Truss is still hanging around the party, to be honest. I have to ask Members on the Opposition Benches: what is your policy towards national insurance?
Torcuil Crichton (Na h-Eileanan an Iar) (Lab)
I welcome the UK-India trade deal, which is good for salmon and good for whisky. Will the Secretary of State use his muscle to ensure that a chain of small distilleries in my constituency and across Scotland can sell a wee dram to India, as well as the big brands?
Mr Speaker, I would like to draw the House’s attention to reports of a crash on take-off of a London-bound Air India flight from India today, and allow the Secretary of State to express our concern.
Mr Speaker
It is very important, and I think the Leader of the House will make reference to it when we get to business questions—if we get there.
Jonathan Reynolds
I am extremely grateful to my hon. Friend for updating the House on that matter. He will know that one of the brilliant things about the UK-India deal is that it is not just for the higher-value, iconic products we are all familiar with; for bulk, there is no minimum price in the deal. The deal is incredibly strong for every bit of the whisky—and gin—industry in the United Kingdom.
I am alert to the news my hon. Friend has just shared, and colleagues will update the House.
Martin Vickers (Brigg and Immingham) (Con)
Greenergy, a company based in Immingham, has been forced to shut down and review some of its operations in the UK. In part, that is due to an influx of heavily subsidised hydro-treated vegetable oil from the US. Will the Secretary of State bear this in mind when he has trade negotiations with the US with a view to easing the situation?
Jonathan Reynolds
I shall of course take that up with the hon. Member. I have spent a fair bit of time in his constituency, as he knows, on one matter or another. On fair trade and level playing fields, colleagues can direct their industries to the Trade Remedies Authority if they have specific concerns, but, of course, we monitor those matters at a departmental level as well.
Sonia Kumar (Dudley) (Lab)
Since the global financial crisis, listing on the London Stock Exchange has fallen by 40%, posing a significant barrier to growth, as liquidity and investor activity decline. What steps is my right hon. Friend taking to ensure that more British businesses are listed on the London Stock Exchange and that the UK remains a leading global financial sector?
Jonathan Reynolds
That is an area of concern to us all. We support and continue to implement some of the listing rules and prospective changes of the previous Government, but the bigger change from this Government is to liquidity, particularly around pensions reforms. None the less, this remains an issue of key competitiveness for the United Kingdom.
Josh Babarinde (Eastbourne) (LD)
Eastbourne businesses Qualisea, Gianni’s and Gr/eat are up in arms, as I am, that East Sussex county council’s shambolic management of the Victoria Place pedestrianisation means that works will now fall in the summer, their busiest trading period. What provision will Ministers make to ensure that businesses hit by such disruption can be properly compensated?
Gareth Thomas
The hon. Gentleman will understand that I do not have the details of that specific case, but if he wants to write to me I will happily look into it.
Mr Speaker
That completes questions. We will now let the Front Benchers change over.