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Calum Miller (Bicester and Woodstock) (LD)
The Parliamentary Under-Secretary of State for Business and Trade (Kate Dearden)
As this is my first time at the Dispatch Box, if I may I would like to thank my predecessor, my hon. Friend the Member for Ellesmere Port and Bromborough (Justin Madders). It is an honour to build on his work, particularly on employment rights and championing fairness and dignity at work.
Hospitality businesses, including those in the constituency of the hon. Member for Bicester and Woodstock (Calum Miller), are vital to the UK economy, driving growth, creating jobs, and strengthening our communities. The Government are delivering targeted support under the small and medium-sized enterprises strategy to boost productivity, cut red tape and revitalise our high streets. Our £1.5 million hospitality scheme aims to help businesses boost productivity and adapt to local needs, while the licensing taskforce seeks to address unnecessary barriers that hospitality businesses face. Furthermore, we plan to permanently reduce business rates for eligible retail, hospitality and leisure properties.
Several hon. Members rose—
Mr Speaker
Order. Just to help Members, this question is purely about Bicester and Woodstock.
Calum Miller
I wish all the questions were just about Bicester and Woodstock.
I welcome the Minister to her place. Becky, who runs the Red Lion in Eynsham, and Donna, who runs the Oxfordshire Yeoman in Freeland, tell me that they are working upwards of 80 hours a week just to keep their pubs open. Despite loyal customers and rising turnover, they are struggling to meet soaring bills from employment costs, food, energy, business rates and a tied tenancy, which means that prices are over £100 more per barrel. In small villages across my constituency, pubs are the lifeblood and fabric of the community. Will the Minister meet Becky, Donna and me to discuss what more the Government can do to support the vital village pub?
Kate Dearden
I agree with the hon. Member that pubs are the lifeblood of our local communities. We recognise the challenges facing the hospitality sector, particularly our pubs. They play such an important role in our local communities as places where people can come together to celebrate, connect and build communities, and that is especially true of the pubs that he mentioned in his constituency. I would of course be happy to meet him and his pub managers to celebrate their contribution to his constituency. We continue to work closely with the Hospitality Sector Council and industry leaders across the country to understand the pressures facing pubs, and to co-create solutions for the long-term stability and local economic growth that are vital for our communities and our country.
Martin Rhodes (Glasgow North) (Lab)
The Secretary of State for Business and Trade (Peter Kyle)
It is good to be before you in a new role, Mr Speaker. In fact, even though I might not look it, we have an entirely fresh ministerial team before the House today. With your forbearance, may I offer the House’s congratulations to my hon. Friend the Member for Penistone and Stocksbridge (Dr Tidball) on becoming parliamentarian of the year at The Spectator awards yesterday. I reap the benefits of her as a Parliamentary Private Secretary, and I am very grateful for it.
This Government are committed to harnessing the insight of a range of stakeholders in delivering the review into responsible business conduct, announced in the trade strategy. That includes producer countries and experts from the global south. As chair of the all-party parliamentary group on Fairtrade, my hon. Friend will be pleased to know that my officials have already held discussions with Fairtrade tea experts from India and Kenya. The Minister for Trade is also engaging with businesses, civil society and trade unions.
Martin Rhodes
I recently met a campaigner from south-east Asia who is involved in freedom of association and independent trade union repression in the garment sector. With that in mind, and given that trade and business are facilitated through relationships, from national Governments to businesses to workers and their trade union representatives, does the Secretary of State agree that it is essential to involve stakeholders at every level of the supply chain, including those representing workers and unions in the global south, when informing the review of the UK and how we promote responsible business practices?
Peter Kyle
I am grateful for my hon. Friend’s work in this area, the conversations that he has and the insight that he shares with the House, as recently as today in his contribution. The responsible business conduct review will be critical to ensuring that businesses respect human rights, labour rights, the environment and anti-corruption measures across their operations and supply chains. I reassure him that, in the conversations that I have already had with international counterparts in the few short weeks that I have been in this job, these issues, including forced labour situations and workers’ rights, are raised. British values and the expectations we have as a country are raised with our international partners in trade talks.
Terry Jermy (South West Norfolk) (Lab)
Sarah Hall (Warrington South) (Lab/Co-op)
Dr Scott Arthur (Edinburgh South West) (Lab)
The Secretary of State for Business and Trade (Peter Kyle)
We are delivering bold action to drive investment and growth nationwide. Our modern industrial strategy is cutting red tape, saving businesses nearly £6 billion a year, and unlocking quicker, simpler ways to do business. We are investing £6.6 billion through the British Business Bank to help innovative firms scale, and we are rebuilding our infrastructure with a 10-year strategy, backed by at least £725 billion-worth of Government capital, providing the certainty needed to boost productivity, secure growth and jobs, and deliver sustainable growth right around the United Kingdom.
Terry Jermy
A report by the Rural Coalition highlights that with the right policy framework, the rural economy could increase productivity, leading to an additional £19 billion a year. Will the Secretary of State outline what steps the Department is taking to help to support businesses in rural areas, such as my constituency, to unlock that growth potential?
Peter Kyle
I am grateful to my hon. Friend not just for his contribution, but for his advocacy for the rural economy. This Government are committed to supporting businesses, including those in rural areas such as South West Norfolk, to thrive and grow. We know that rural areas offer significant growth potential, contributing £259 billion to England’s gross value added in 2023. My Department provides support through the Help to Grow: Management business support service and the New Anglia Growth Hub. Our plan for small businesses will hardwire small business voices into Government to boost growth. On top of that and underpinning all of it is the modern industrial strategy, which provides stability into the long term—stability for which the business community right across the United Kingdom has been crying out for too long.
Sarah Hall
In Warrington, Platform is transforming the former Unilever site where Surf and Persil were once produced into a next-generation modular data centre that will provide the capacity, resilience and connectivity needed to power the UK’s AI revolution. From Persil to pixels, Platform is taking a brownfield industrial site with more than a century of manufacturing heritage and bringing it into the 21st-century economy. Will the Secretary of State set out what more the Department can do to support home-grown, local companies such as Platform to deliver projects of this kind, which combine cutting-edge AI infrastructure, data sovereignty, regional growth and high-value skills for the future workforce?
Peter Kyle
Warrington has been at the centre of previous industrial revolutions, and we are determined that it will be at the forefront of the industrial revolution that is unfolding, with a wave of digital technology and AI flowing across the world. We will use all the agency of this Government to ensure that all parts of the United Kingdom benefit equally from that. My hon. Friend will know that work such as that by Platform on the transformation of the Unilever site in Warrington is exactly the kind of bold, future-facing investment that we want to enable. That is why we delivered the AI opportunities action plan so swiftly. We will create AI growth zones across the United Kingdom to create the infrastructure in which new businesses and businesses that are transforming places and communities such as Warrington will be at the forefront and able to grasp the very best of the global economy in the regions and nations of every part of the United Kingdom.
Dr Arthur
One of the great things about Edinburgh South West is that it has a flourishing renewables sector, which I think is reaching critical mass. A few weeks ago, I attended a fantastic roundtable that demonstrated the industry’s desire to work with the UK Government to make their industrial strategy a complete success. Will the Secretary of State commit to meeting organisations in Edinburgh South West to discuss how we can ensure that our industrial strategy brings as many jobs as possible to Scotland’s capital?
Peter Kyle
Again, my hon. Friend is a great advocate for the community that he represents in Parliament. I am very excited to meet the businesses that he references. We hit a milestone in the second quarter of this year, because the UK started to produce more than 50% of its energy using renewables. His community as well as other communities around the UK will benefit from the transition to renewables. This is an exciting time to do business, and this is an exciting sector of our economy; it is one of the fastest growing sectors in the global economy, and right here in the UK we are benefiting the most from it.
David Mundell (Dumfriesshire, Clydesdale and Tweeddale) (Con)
A major lodge development at Irvine House near Canonbie, and the potential for a Center Parcs in the borders, show that there is still great potential for jobs in the tourism industry my constituency. Will the Secretary of State encourage the Chancellor to follow the advice of the Scottish Hospitality Group and give hospitality a fair deal in the Budget, rather than clobbering it as she did last time?
Peter Kyle
I assure the right hon. Gentleman that every sector of our economy is at the forefront of the Chancellor’s mind as she stabilises and recovers our economy from the 14 years of chaos and confusion wrought by the Conservative party. I also assure him that there will be no repeat of the mini-Budget that the Conservatives inflicted on our economy, the consequences of which we are still suffering today, which the right hon. Gentleman voted for and supported. We inherited a growth emergency because of the decisions taken by the Conservative party in government. We will recover from it; we will build back better; and we will make sure that every sector, including hospitality, benefits from the great economy we are moving towards.
Wera Hobhouse (Bath) (LD)
One change that would encourage significant investment is UK participation in the EU’s internal electricity market. Energy trading with our closest neighbour is currently hugely inefficient, which only adds to the burden of energy costs that our businesses face. Will the Government put real pressure behind the negotiations that are ongoing with the EU to reinstate our internal energy trading with the EU?
Peter Kyle
As the hon. Lady knows, we have put a lot of effort into the reset with the EU. We have built new opportunities for British people and British business, and we will continue to do so.
Nick Timothy (West Suffolk) (Con)
Every Labour Government in history have ended their time in office with unemployment higher than when they started, and this Government have made a record-breaking start. Businesses large and small in West Suffolk are putting off investment decisions, freezing recruitment and laying off staff because of the burdens already imposed on them by this Government—business property relief, the family farms tax, national insurance contributions, and the employment rights legislation. After the last Budget, the Chancellor told the Confederation of British Industry that she was not going to “come back for more”, so will the Secretary of State take this opportunity to end the uncertainty and tell business very clearly that there are going to be no more tax rises on business in the Budget?
Peter Kyle
I reassure the hon. Gentleman that the industrial strategy gives clarity on policy for 10 years into the future, which has been welcomed by businesses large and small. I also reassure him and the businesses in his community that there will be no repeat of the mini-Budget that the Conservatives inflicted on our country, for which we are still paying the price. Finally, I reassure him that we have a Chancellor who puts first and foremost the primary mission of this Government, which is economic growth—the kind of growth that is delivering record investment in our economy, from which every business, large and small, is benefiting equally right around the United Kingdom.
Dame Harriett Baldwin (West Worcestershire) (Con)
I welcome the all-new ministerial team to their positions. They have inherited a crisis, because business confidence has plunged to a record low since the Chancellor’s Halloween budget a year ago today. Will the Business Secretary assure this House that he will find and demonstrate his backbone, stand up to the Chancellor, and encourage business investment by following Conservative plans to reduce welfare spending so that we can scrap the family business tax and cut small business rates?
Peter Kyle
I am very grateful to the hon. Lady for welcoming me to the Dispatch Box. We are very aware that we inherited a crisis—a crisis created by the Conservative party, including the state in which they left our global relations, the lack of growth in the economy and the effects of the mini-Budget. The reputation of our country was in tatters as a result and our public services were on their knees, but all of those things are being turned around because of the decisions taken by this Chancellor. The Conservatives should be celebrating the fact that we had the fastest growing economy in the G7 for the first six months of this year, because these are the kinds of actions that show we are getting growth and stability back into our economy, and give businesses the predictability upon which to build future success and prosperity and the creation of jobs. The Conservatives should be celebrating that, not talking our country down.
Henry Tufnell (Mid and South Pembrokeshire) (Lab)
Noah Law (St Austell and Newquay) (Lab)
Euan Stainbank (Falkirk) (Lab)
The Parliamentary Under-Secretary of State for Business and Trade (Blair McDougall)
The whole of Government are focused on delivering the industrial strategy, and significant progress has already been made. This month, we published our new quarterly update, which reports on the key economic indicators for growth-driving sectors, delivery milestones and major investments. With over £250 billion of investment committed and over 45,000 jobs supported since July, we are delivering on that vision.
Henry Tufnell
Mid and South Pembrokeshire plays a vital role in the UK’s energy sector, supplying 20% of the UK’s energy. This Government have recognised that the future of Britain’s energy security depends on Pembrokeshire, identifying us as a key growth region and investing in our workforce with an £800,000 skills pilot. Will the Minister set out how the industrial strategy will help empower communities from Pembroke Dock to Milford Haven to continue to lead the way in our energy security and help generate local economic growth?
Blair McDougall
My hon. Friend has been a constant advocate for the energy potential of Pembrokeshire. That is why the industrial strategy supported south-west Wales’s clean energy potential through targeted investment in infrastructure and workforce development. The strategy will build on that using the potential of the port of Milford Haven, floating offshore wind in the Celtic sea and carbon capture technologies. The £800,000 skills pilot that he refers to underpins that clean energy industries sector plan. The National Wealth Fund will also benefit Wales, as it will invest in the sectors he mentions that are prevalent in that area.
Noah Law
Cornwall has a huge role to play in making Britain a clean energy superpower. As Ministers will be aware, much thought has already gone into the making of an industrial strategy for Cornwall. The crucial piece now is to unlock the funding needed for industrial and economic development, particularly in the wake of the shared prosperity fund coming to an end. What discussions has the Minister had with colleagues in the Ministry for Housing, Communities and Local Government about the prospect of a set of investment measures to replace shared prosperity funding and ensure the realisation of Cornwall’s unique industrial potential?
Blair McDougall
I know from holidaying in my hon. Friend’s constituency that it is a place of incredible beauty, but I know from his constant advocacy that it is also a place of huge industrial potential. Cornwall will benefit from access to the £200 million investment fund, which provides debt and equity finance of up to £5 million for businesses in the south-west. That has already delivered £51.8 million of direct investment, leveraging an additional £48.1 million. I know he has big plans for industry in Cornwall, and we will work with him, especially on access to finance, to ensure that we can unlock that potential. We will of course work with our colleagues in MHCLG.
Euan Stainbank (Falkirk) (Lab)
I declare an interest as co-chair of the all-party parliamentary group for British buses. Our bus manufacturing industry supports thousands of jobs across the country, but faces an existential challenge from China. Market share has increased rapidly, and the Scottish National party’s disastrous ScotZEB 2 scheme sent less than 20% of orders to Scotland’s sole manufacturer, which directly jeopardised 400 jobs earlier this year. What urgent interventions are Ministers considering to contend with the rise in Chinese market share? Has the Minister discussed this issue with colleagues in the Department for Transport prior to the publication of the 10-year bus pipeline next month? Record bus funding should not be a shopping list for China.
Blair McDougall
I share my hon. Friend’s frustration at the lack of an industrial strategy from the SNP Government in Edinburgh. It has meant that workers at Alexander Dennis in his constituency are on furlough rather than doing what they do best: making world-class buses for public transport. For our part, we are supporting combined mayoral authorities to co-ordinate the procurement of buses through a Crown Commercial Service commercial agreement, and we are publishing a 10-year pipeline of future bus orders to provide the much-needed certainty that the sector requires. That includes providing advice on using social value criteria that suppliers such as Alexander Dennis are well placed to meet when procuring new buses, such as creating and retaining jobs in a way that respects our legal obligations. I pay tribute to my hon. Friend for keeping this issue on the agenda.
Mr Speaker
It is no use the Secretary State looking at me with a grin as though I am out of order. We are still only on the second question and I have to get some other Members in—that is all I am bothered about. It will get worse shortly—I have got Jim to come! I call Robin Swann.
Robin Swann (South Antrim) (UUP)
I will not take the dig about being short personally, Mr Speaker.
The industrial strategy and the strategic defence review both offer great opportunities to the entire United Kingdom. Can I seek reassurances from the Minister that he will work with the Northern Ireland Executive to ensure that Northern Ireland and Northern Ireland businesses get benefit out of both?
Blair McDougall
I can absolutely give the hon. Member that reassurance. I have already met with my opposite number in the Northern Ireland Executive. The hon. Member mentions defence industries in particular, and it feels like every single month there is a significant defence order as part of the industrial strategy. It shows that these are not just words on paper, but that we are delivering within the real economy.
Jim Shannon (Strangford) (DUP)
I welcome the Minister and, indeed, the whole Front-Bench team to their places—well done!
On the industrial strategy, what steps have been taken to fund high-quality workforce apprenticeships in sectors such as technology, manufacturing and hospitality, to provide young people with opportunities for employment and lives in those industries? Will the Minister undertake to discuss these matters with the relevant Minister at the Northern Ireland Assembly?
Blair McDougall
As I said to the hon. Member for South Antrim (Robin Swann) a moment ago, we have already met with the Northern Ireland Executive on these issues. Skills are an essential part of the industrial strategy because we see, again and again, industries around the country that are desperate to grow, and have the orders, but are unable to create the high-paying jobs that we need. That is an absolute priority for us as we implement the industrial strategy.
Gareth Davies (Grantham and Bourne) (Con)
Labour’s industrial strategy recognises that housing and infrastructure are vital to driving regional investment. But as I hope the Minister will know, across the road, the Treasury has been quietly consulting on changes to the landfill tax, ending the decades-long exemption for quarries. That change would add millions of pounds on to infra- structure projects and increase tax costs for construction businesses across the country. How would such a move help grow our economy and build the homes and infra- structure that we need?
Blair McDougall
We are fast approaching the time of year when I have to tell my children that they will have to wait until Christmas to find out what their presents are. The hon. Gentleman knows that he has to wait until the Budget to find out what is in the Budget. He mentioned planning. We have made huge changes to planning rules, which have resulted in a saving of about £272 million in red-tape costs for business, so we are ensuring that that sector, in particular, has the environment it needs to contribute to growth.
Gareth Davies
I am afraid that is not good enough. The industry is facing deep uncertainty around the kite flying going on across the road at the Treasury. I realise that he is not responsible for that, but he needs a better answer for the construction industry. The Construction Products Association has just cut its growth forecast for the sector to barely 1% next year, warning that the uncertainty over new taxes is choking investment. I will ask the Minister again: how on earth will adding £28,000 to the cost of a new home, or 25% to road construction costs, through a new builders tax do anything other than cement the slowdown that Labour is overseeing in our economy?
Blair McDougall
To stand up and raise uncertainty, and then complain about it, is quite something. The shadow Minister said that we are slowing growth; we were the fastest-growing economy in the G7 in the first half of 2025. We are now the fourth-largest exporter in the world, and we have had five interest-rate cuts in a row—
Mr Speaker
Order. Mr Timothy, you used to be an adviser who specialised in not answering questions; we do not need any help! [Laughter.]
Blair McDougall
Thank you, Mr Speaker. I am glad that those on the Opposition Benches recognise excellence when they see it.
Sarah Olney (Richmond Park) (LD)
I also welcome the ministerial Front Benchers to their new roles. The Liberal Democrats have long championed an industrial strategy. In government, we created the Green Investment Bank, the British Business Bank and the regional growth fund, and we opposed the Conservative Government’s damaging decision to scrap the industrial plan. We welcome the industrial strategy’s return, especially its focus on investing in skills.
However, businesses know that the apprenticeship levy does not work: funding is hard to access and millions go unspent. We welcomed the pledge in June to replace it with a more flexible growth and skills levy, but firms and young people are still awaiting details. Will the Minister provide details of what training this will fund, so that businesses and young people can plan ahead with certainty?
Blair McDougall
I thank the hon. Lady for her kind words on my new appointment. I will not get ahead of announcements on that, but given the importance of skills to the industrial strategy, we are not waiting for those announcements. We have had TechFirst, a £187 million investment in secondary school pupils, undergraduates, PhD students, entrepreneurs and businesses, to help them get ahead on that. We have the engineering package of over £100 million, and the defence package of £182 million. We are making those investments now to ensure that the pipeline is there for those industries, which are the priority within the industrial strategy.
Sally Jameson (Doncaster Central) (Lab/Co-op)
Jo Platt (Leigh and Atherton) (Lab/Co-op)
The Parliamentary Under-Secretary of State for Business and Trade (Blair McDougall)
The Government have launched our small business plan, which my predecessor, my hon. Friend the Member for Harrow West (Gareth Thomas), did so much great work on. “Backing your Business” outlines how we will make thriving small and medium-sized businesses a reality across the UK. We are unlocking billions of pounds in finance to support businesses, including through the most significant reforms to tackle late payments in 25 years. We will support businesses further by revitalising high streets and delivering growth-boosting support for digital adoption through a new online business growth service.
Sally Jameson
For British Beauty Week last week, I visited the award-winning Doncaster salon Beauty Lounge in Armthorpe. The British beauty industry is a massive success story for business. What will the Minister do in his new role to support the industry and salons across the country?
Blair McDougall
As ever, my hon. Friend is a great advocate for all things Doncaster. The beauty sector is a vital driver of innovation, sustainability and wellbeing across the economy, but also locally, through businesses like the Beauty Lounge. That is why we are backing small businesses through the small business plan, as I just set out, but we are also reforming business rates and have increased the employment allowance, enabling employers to hire up to four full-time workers without paying national insurance contributions. I am always told on social media that I am in need of a glow-up—perhaps the next time I am in Doncaster, the Beauty Lounge can help me out.
Jo Platt
Leigh and Atherton has many exceptional SMEs that are driving local growth, particularly in manufacturing, engineering and construction. What steps is the Minister taking to make sure that SMEs in areas like mine receive targeted support as part of efforts to address regional imbalance and reduce reliance on our major metropolitan centres?
Blair McDougall
I know my hon. Friend is a great believer in Leigh and Atherton’s untapped potential, and so are we. We have launched the small business strategy, with action on late payments, action to unlock access to finance, and better, simpler support through the business growth hub. In addition to that, Leigh will receive £20 million through the pride in place programme. I know my hon. Friend fought hard for that on her community’s behalf.
Peter Fortune (Bromley and Biggin Hill) (Con)
My constituency has nearly 5,000 SMEs, all of which are facing increasing business rates and taxes, threatening jobs and growth. Will the Minister signal his support for SMEs by following the Conservative party’s lead and completely abolishing business rates for pubs and restaurants on the high street?
Blair McDougall
I gently say to the hon. Member that he did not do that in 14 years in government. Indeed, the Conservatives were set to remove the reliefs on small businesses. Rather than repeating the mistakes of the Liz Truss Budget with unfunded tax commitments, we are giving real support to businesses now, including by increasing the employment allowance so that more and more of the small businesses that he describes do not pay national insurance contributions at all.
John Glen (Salisbury) (Con)
I recently met with Discover Adventure, a small business in Coombe Bissett which is genuinely struggling to engage with Government over the recent package travel regulations. It sits ambiguously between DBT, the Department for Transport and the Department for Culture, Media and Sport; indeed, a question was thrown back today, having been tabled in the Table Office. May I sincerely ask the Minister to help me locate the correct Minister to deal with the Association of Independent Tour Operators? This is a vital small business sector in this country, and it needs someone to engage with in Government over these regulations.
Blair McDougall
I thank the right hon. Gentleman for his constructive question; I am very happy to pursue that within Government. The wider point is that both the small business strategy and the industrial strategy are important because they are cross-Government strategies, as lots of sectors and individual businesses are facing challenges that are not just the responsibility of one Minister. I will certainly follow up on that.
Dame Harriett Baldwin (West Worcestershire) (Con)
I associate myself with the remarks about British Beauty Week. In addition to beauty businesses, one of the key ingredients for growth on our high streets is having a post office in the mix. As Post Office Minister, he has inherited a network of 11,500 post offices across the country and a consultation on the size of that network. Can he echo what his predecessor said at the Dispatch Box, and commit to supporting our high streets by maintaining the scale of the post office network throughout this Parliament?
Blair McDougall
I thank the shadow Minister for her welcome. She is absolutely right about the anchoring effect of post offices on high streets all over the country. We know not just that, as we mentioned in the Green Paper, if people go to their post office they are likely to spend money in local shops, but that post offices are essential—as I found out during a visit to one the day before yesterday—in giving small businesses somewhere to take their takings. The Green Paper set out the options for maintenance of the post office network, and it is certainly our intention to maintain it.
Alex Sobel (Leeds Central and Headingley) (Lab/Co-op)
The Secretary of State for Business and Trade (Peter Kyle)
I regularly engage with my right hon. Friend the Work and Pensions Secretary, as my hon. Friend would expect. We share the importance of increasing the uptake of the excellent cars built across the United Kingdom. The Motability scheme supports those in receipt of a qualifying mobility allowance, and the Government will continue to work with Motability to ensure that the scheme meets the transport needs of disabled people.
Alex Sobel
One in five new cars is now purchased through the Motability Scheme. This presents an unprecedented opportunity for the British car industry, as the scheme stipulates what cars its users can buy. Has the Secretary of State considered that we could hugely increase the sales of British cars by stipulating that only British-built cars can be bought—and this is public money—by Motability users, which would not just safeguard thousands of British jobs, but create a world-leading industry in accessible vehicles?
Peter Kyle
That was a very thoughtful contribution, and I am very grateful for it. The Motability Foundation is an independent charity and is regulated by the Charity Commission, but it does engage fully with the Government in the most respectful way. As my hon. Friend would imagine, I have instructed my officials to work with those in the Department for Work and Pensions to see how we can make recommendations and certainly to support the take-up of British cars as much as possible. This Government are of course committed to the growth of the automotive sector. We are providing support through programmes such as DRIVE35, the electric car grant, which will invest up to £2.5 billion of support into zero emission manufacturing across the UK.
Andy McDonald (Middlesbrough and Thornaby East) (Lab)
The Parliamentary Under-Secretary of State for Business and Trade (Kate Dearden)
I thank my hon. Friend for his long-standing advocacy in this area. We want to work constructively with unions, employers and stakeholders to build on the Employment Rights Bill. Our first priority for a fair pay agreement is adult social care, a large and complex sector with over 19,000 providers and 1.5 million dedicated workers. As such, our priority is ensuring that this process works effectively, which is why I am delighted that the Government have announced a £500 million investment in the first ever fair pay agreement in the social care sector. We will use what we learn to consider where fair pay agreements can offer similar benefits across other sectors.
Andy McDonald
I thank the Minister for her response, but with the cost of living pressures continuing, it is clear that delivering increased real incomes and better living standards is our No. 1 priority. Can the Minister say a little more about which further sectors are most ready for fair pay agreements, and what steps the Department is taking to meet the UK’s obligations, as a member of the International Labour Organisation, to extend sectoral collective bargaining as a means to raise pay and improve living standards?
Kate Dearden
I welcome my hon. Friend’s support for sectoral collective bargaining and collective agreements as a key steer for improving living standards across workplaces in the country. As he knows, we are demonstrating our commitment to sectoral collective bargaining with the social care and school support staff sectors. The UK is committed to working internationally to strengthen workers’ rights and enhance Labour standards globally. We fully support the work of the International Labour Organisation and will continue to meet our obligations under the ILO.
Torcuil Crichton (Na h-Eileanan an Iar) (Lab)
The Secretary of State for Business and Trade (Peter Kyle)
This Government wasted no time when it came to trade deals—not just talking about them, but delivering them. We have already secured trade deals with the biggest economy in the world, one of the fastest-growing economies in the world, and our biggest trading market. The Government’s clear principle is to deliver for British businesses and the British people. That is why in the first month of my new role I travelled to three continents to further strengthen UK trade and investment.
Torcuil Crichton
I welcome the Secretary of State to his place and invite him to Benbecula Distillery in my place. It is a dramatic lighthouse distillery, and a great addition to the landscape. It recently secured £1.5 million from the British Business Bank’s investment fund. Benbecula’s distillery is one of a chain of small distilleries across the Western Isles and other islands. I had a wee dram in Raasay, where that distillery has revived the island as much as its product revived me. What is the Secretary of State doing to make sure that this new wave of small Scottish distilleries will be part of the next round of trade deals?
Peter Kyle
I am extremely grateful for the invitation. I can reassure my hon. Friend that when we have the opportunity to take delegations abroad, the Scotch Whisky Association and representatives of those distilleries are always with us. We fight hard for the Scotch whisky business. We know how important it is right across the United Kingdom and to the UK’s economy overall. The week before last I was in India with the Prime Minister where we were furthering the trade deal we have secured and making sure that we exploit all the opportunities that these trade deals present. It is important to not only secure trade deals but make sure that we exploit all the opportunities right across the economy. That deal alone will unleash over £1 billion-worth of opportunities for the Scotch whisky industry, and that is something we should all celebrate.
Chris Law (Dundee Central) (SNP)
In taking steps to improve our trading relationship with other countries, I welcome the new sanctions announced by the UK and the US targeting Russia’s two largest oil companies: Rosneft and Lukoil. However, despite pointing out to Ministers on several occasions that hundreds of billions of pounds have been generated for Russia as a result of oil and gas being shipped under British companies with British insurance, no action has been taken to stop this. Given that every vessel transporting Russian liquefied natural gas is financing the destruction of Ukrainian villages, towns and cities and the deaths of Ukrainian soldiers and civilians, when will this Government act to end the complicity of UK companies in this?
Peter Kyle
The hon. Member will know that the Prime Minister and this Government stand shoulder to shoulder with Ukraine, and we have since the moment we came into office. We are highly aware of the risks that Russia poses, not just to Ukraine but to the continent of Europe. We are also aware of the constant attacks this country undergoes from cyber-security threats via Russia and Russia-sponsored activity. I can assure the hon. Member, from conversations I constantly have across Government and the forums across Government I am part of, that we are very aware of this threat and act constantly against it.
Mr Alistair Carmichael (Orkney and Shetland) (LD)
The Secretary of State for Business and Trade (Peter Kyle)
I am grateful to the right hon. Member for his question. The UK was the first country to secure such an agreement with the US—one which will save thousands of jobs, protect key British industries and farmers, and drive economic growth. People said that it would be impossible to deliver such a deal without compromising on food standards, but we have proven them wrong. This Government have delivered a deal that protects our high food standards while giving British farmers access to a market of 340 million people where they can sell their high-quality beef.
Mr Carmichael
The Secretary of State is right that any threat of an imminent increase in US beef imports in particular is clearly not the problem, but it has not gone away either. The US Department of Agriculture has a foreign agricultural service with 100 different offices, embassies and trade missions. They work with US farming groups around the world to promote their product, and they are not spending that money just to stand still. What will the Secretary of State be doing to ensure that our farmers have the same opportunities, so that they can see free trade agreements not just as threats but opportunities too?
Peter Kyle
I am grateful for the right hon. Member’s insightful and thoughtful contribution. As I said, striking trade deals is vital. That is why we put so much energy into it and have had so much success, and there will be more to come. It is very important that the whole British economy and Government make sure that we exploit the full opportunities that all these agreements offer. The Department for Business and Trade has embedded highly talented trade experts right across the world, and they are trying to do just that on the frontline of all the economic opportunities we perceive around the world, and that includes agriculture. If there are specific areas where the right hon. Member perceives that the agricultural sector, either in his patch or across the United Kingdom, has an opportunity that is not yet being exploited, I want to hear from and work with him to make sure that British farmers benefit.
Oliver Ryan (Burnley) (Lab/Co-op)
The Parliamentary Under-Secretary of State for Business and Trade (Chris McDonald)
All Jaguar Land Rover’s UK factories have restarted and the company is offering a financing scheme to qualifying suppliers. UK Export Finance has also provided a partial guarantee for a £1.5 billion loan from commercial lenders to help JLR manage its businesses and pay its suppliers. I am grateful for my hon. Friend’s continued advocacy for the Jaguar Land Rover supply chain, in particular small businesses in the Burnley constituency. I understand that small businesses are now receiving support through the scheme, although more work needs to be done.
Oliver Ryan
I thank the Minister for that answer, for his work thus far, and for his extensive correspondence with me and the industry during this crisis. Local suppliers, such as the brilliant BCW in Burnley, have told me that the finance just is not getting to suppliers and that some of them are going to the wall or cutting jobs. JLR is not doing enough to avoid widespread supply chain job losses. This is affecting the entire British car industry through contagion effects, and suppliers are telling me that they are not out of the woods yet. What more can he do to get more support for our suppliers, such as BCW?
Chris McDonald
BCW in my hon. Friend’s constituency is an extremely important engineering firm not only for Jaguar Land Rover, but for our manufacturing supply chains. The concerns he has raised about access to finance for companies lower down in the supply chain are ones that I have raised with both Jaguar Land Rover and banks—I had with a meeting with most of the lenders. However, I commend the work of the Confederation of British Metalforming, which works with the supply chain. I understand that it had positive meetings with Jaguar Land Rover recently, although of course there is a cash financing issue as factories come up to speed. I will be paying close attention to that in the coming weeks.
Ben Obese-Jecty (Huntingdon) (Con)
The Secretary of State for Business and Trade (Peter Kyle)
The growth emergency we inherited from the previous Government demands a proportionate response. That means an unrelenting focus on pro-business policies. It means harnessing investment in our high growth sectors and tirelessly implementing our modern industrial strategy. It means shaking up our entire regulatory system. The Department for Business and Trade is stripping out the rules, regulations and red tape that are holding business back. We are helping reduce the regulatory burden by 25%, cutting out 200 hours of needless paperwork for companies so far. We are simplifying rules around company reporting, saving firms £230 million. We are bringing in a strengthened growth duty for regulators and launching a new performance dashboard, injecting agility into our regulatory regime. Where regulators are doubling up, we are streamlining them. We are abolishing the British Hallmarking Council, transferring functions to the Department. This is a new ministerial team acting with urgency. We are using every lever we have to grow the economy and to deliver for this Government’s plan for change.
Ben Obese-Jecty
On Tuesday, the Ministry of Defence announced the launch of Project Fairfax, which will see a defence technology cluster established on surplus MOD land at RAF Wyton in Huntingdon. This is a hugely exciting opportunity for both Huntingdon and the MOD, as we seek to create a defence ecosystem in sites we have identified across Huntingdonshire. With a decision yet to be made about identifying investible sites, and regarding the £600 million fund available through the strategic sites accelerator programme, will the Secretary of State meet me and the chief executive of my local council to discuss the inclusion of potential defence sites in Huntingdon?
Peter Kyle
I am grateful for the hon. Gentleman’s question, and I know that his community will be grateful for his question, too. I can assure him that we are working to mobilise the strategic sites accelerator, which will operate across the nation. We expect to communicate how and when the programme will deploy in the coming period into spring. As he knows, RAF Wyton is a key site for cyber and specialist operations command. It is an important asset for our nation. I, or the relevant Minister, will of course meet him to discuss how we can better support that site going forward, but already within Government it is a very highly valued asset.
Michael Payne (Gedling) (Lab)
The Parliamentary Under-Secretary of State for Business and Trade (Chris McDonald)
I was pleased to address a meeting of Hydrogen UK just last week, where I reaffirmed Government support for the sector, which we have recognised through our industrial strategy and the clean energy industries sector plan. I would be happy to meet my hon. Friend to discuss in particular Luxfer’s ambitions to invest more in the UK.
Andrew Griffith (Arundel and South Downs) (Con)
I welcome the team to their significant roles for the United Kingdom.
This week, the other place voted for five reasonable amendments to the Employment Rights Bill, representing a meaningful compromise with cross-party support to mitigate some of the worst of the damage caused by the Bill. As the Office for Budget Responsibility now scores the impact of that legislation, this is one of the last chances to avoid the costs, taxes and spending cuts that will result from it. Will the Secretary of State now put country before party, do the right thing by British business and accept those compromise amendments?
Peter Kyle
I am grateful for the shadow Secretary of State’s warm words. He shadowed me when I first went into my role at the Department for Science, Innovation and Technology; he was then moved here before me, so I have followed him to this role. I watch with trepidation the next reshuffle on his Benches.
The shadow Secretary of State mentions the workers’ rights Bill, which is still between the two Houses; I hope we will be reconciled as soon as possible so that it can get Royal Assent and benefit workers and businesses right across the nation. Once the Bill passes, we will, of course, undertake a period of implementation. My predecessor and the previous Deputy Prime Minister, who championed this legislation, were clear from the outset that the Bill will modernise the British workplace so that it is beneficial for businesses and for the people who work in them.
The modern economy has changed; it is different from 20 years ago. The Conservatives had the time to modernise the economy and the relationships within workplaces, and they chose not to take that—
Mr Speaker
Order. I don’t want to do this, but this is topicals, and all these Members need to get in. We did not get through the list already. You have to help me to help them.
Andrew Griffith
I will save time, Mr Speaker, by not mentioning the 13 leading business organisations that have all called for certainty now—not well-intentioned future consultations on implementation, but certainty now, because jobs and the economy are bleeding out. The Secretary of State will know that even the Resolution Foundation—that wonderful finishing school for aspiring Labour Ministers—said this week that some of the measures in the Bill should not be proceeded with.
Peter Kyle
Again, the Conservatives had 14 years in which the economy was changing. They had the chance to tackle zero-hours contracts, and what did they do? Nothing. They had the chance to tackle fire and rehire, and they did nothing. They had the chance to tackle the challenges of being an app-based employee, and they chose to do nothing. We are acting to modernise the economy and the relationship out there between businesses and workers because that is what is needed. It is what workers and businesses need, and it is what this Government are delivering.
Peter Swallow (Bracknell) (Lab)
The Parliamentary Under-Secretary of State for Business and Trade (Blair McDougall)
My hon. Friend is a dynamic advocate for a dynamic part of the country in the Thames valley. The industrial strategy and its sector plans highlight the strengths in his area, especially in tech and life sciences. Alongside the national package to grow the sector, specific interventions in the south-east include an AI growth zone in Culham, support for the Solent freeport, expanding the British Business Bank’s nations and regions investment fund and major projects backing the Oxford to Cambridge growth corridor. We will keep working with my hon. Friend to unlock the potential across the south-east.
Sarah Olney (Richmond Park) (LD)
Businesses across the country are struggling with unaffordable energy costs. The burden of this Government’s national insurance contributions rise and uncertainty over the Employment Rights Bill are compounded by the immense struggle caused by sky-high energy bills. I urge the Government to act with more urgency in addressing energy costs for businesses, including through accelerating the launch of the industrial competitiveness scheme, the consultation for which is not even due to be launched until the end of the year. What discussions has the Minister had with the Secretary of State for Energy Security and Net Zero to cut operating costs for businesses, and will the Government consider Liberal Democrat proposals to break the link between gas and energy prices, halving bills within a decade and easing pressures?
Peter Kyle
I can assure the hon. Lady that we are in constant contact with the Energy Secretary. When I was at DSIT, we co-chaired the AI energy council, and we are working together to get the transition to renewable power done as swiftly as possible, generating the wealth that our country needs from the transition period. Also, we are lowering bills and, through some targeted interventions, ensuring that those key businesses get the support they need on the challenges with energy prices and supply that we inherited when we came into office.
Phil Brickell (Bolton West) (Lab)
Peter Kyle
I am grateful for my hon. Friend’s passionate question. As he will know, we have struck a trade deal with the EU and reset the relationship with it. We will continue to build on that to deliver for all parts of our economy.
Graham Stuart (Beverley and Holderness) (Con)
Mr Speaker
Order. Mr Stuart, please—we do not read out the phone directory, and trying to do so in a topical does not work for you or me.
Blair McDougall
As I said to the hon. Member for West Worcestershire (Dame Harriett Baldwin), we are committed to ensuring not just that we work to maintain the post office network, but that we deal with some of those long-standing issues about the viability of the business going forward—issues that the Conservatives had 14 years to fix and did not.
Dame Nia Griffith (Llanelli) (Lab)
Workers at Tata’s Trostre site in my constituency have been hard hit by the five-week annual stoppage, leaving them short of money over Christmas. Despite reassurances from Tata, the Minister will understand that they are worried that this is a sign of worse to come. What is he doing to bring down energy prices, negotiate preferential treatment for our products to access the EU, and ensure that we strengthen our protections against cheap imports—all vital to the future of our steel industry?
Chris McDonald
We recognise the importance of the steel industry in Wales and of Trostre in particular, which has more than 70 years of tinplate production and is the only tinning line in the UK. I met the chief executive of Tata Steel this week to discuss this very issue. He referred to a softening in market demand, but fundamentally, this Government are committed to creating a better business environment for steel in the UK, so that it can compete with Europe, including on energy prices.
Claire Young (Thornbury and Yate) (LD)
Blair McDougall
The hon. Member raises an important point, particularly for small businesses, which rely on those schemes. I pay tribute to the Royal Mail for the speed at which it reacted to those de minimis changes to ensure that businesses were able to continue. We keep working with Royal Mail as well to ensure that that is possible.
Ben Goldsborough (South Norfolk) (Lab)
In rural constituencies like South Norfolk, I can think of no better place for employment than our pubs. From the Wheel of Fortune in Alpington to the Angel Inn in Loddon, these pubs are not just vital hubs of our communities but drivers of economic growth. In fact, Mr Speaker, you are more than welcome to join my Christmas pub team on 13 December. What support are the Government putting in place to help those businesses provide decent employment?
Peter Kyle
I am grateful for my hon. Friend’s question— I am glad he got in today. I can assure him that we are working closely with pubs. We want pubs to be at the beating heart of communities up and down the country. We know we have inherited a challenging environment for pubs. We listen to them and will be acting.
Gareth Bacon (Orpington) (Con)
Peter Kyle
You would have thought, Mr Speaker, that the hon. Gentleman might say a good word about our British automotive sector. The trade deal that we struck with America—the first and the best such trade deal—protected 44,000 jobs from the tariff challenges being felt around the world. We are creating new opportunities and investing. As the House saw, the Government acted at speed to protect Jaguar Land Rover and its entire supply chain in its hour of need. This Government act when we need to and create opportunities wherever we can, and we will continue to do so.
Gareth Snell (Stoke-on-Trent Central) (Lab/Co-op)
To make steel in this country, we need ceramics. To build houses in this country, we need ceramics. Five of the eight industrial strategy growth sectors require ceramics. Ahead of the launch of the British industrial competitiveness scheme, might there be any interim relief from energy prices for energy-intensive industries?
Chris McDonald
My hon. Friend is a fantastic champion for ceramics. This is only my second time at the Dispatch Box, but it is also the second time that he has asked me about this. He and I have already met to discuss it, and I am happy to have further conversations with him and industry about everything we can do, as soon as possible, to support the sector with its energy costs.
Vikki Slade (Mid Dorset and North Poole) (LD)
I launched my “Pub of the Year” award at the Goods Yard in Broadstone last week. Fifty-four pubs and two breweries in Mid Dorset and North Poole support 1,600 jobs and underpin the vibrancy of our towns and villages, but two thirds of them have had to cut jobs or hours since the damaging jobs tax. Hospitality venues typically operate seven days a week, and sometimes more than 12 hours a day, so they need many part-time workers. Will the Government consult on a new lower rate of employer national insurance for workers earning £5,000 to £9,100, to support the employment of part-time workers and drive growth?
The Parliamentary Under-Secretary of State for Business and Trade (Kate Dearden)
I come from a small business family in the hospitality sector, so I completely understand how important the sector is for local economies and jobs—especially pubs, which are the backbone of our high streets and important for pride in our local economies and communities. We are helping pubs through our £1.5 million hospitality support scheme, and through brilliant initiatives such as Pub is The Hub, for which £440,000 was recently announced. More will be announced soon.
Dr Rupa Huq (Ealing Central and Acton) (Lab)
As of tomorrow, the Lending Standards Board will be no more, because its funders—the banks—have pulled out. Will Minister meet me urgently to take forward the good work that the board was doing, particularly on the ethnicity code? That work exposed the fact that only 19% of minority businesses achieve loans, whereas 58% of standard applications do.
Blair McDougall
Businesses led by entrepreneurs from ethnic minority backgrounds make a huge contribution to all our constituencies. Indeed, I met two such remarkable business people in Acton a couple of days ago. My hon. Friend is right to mention that finance is a barrier for under-represented groups, including ethnic minorities. Dealing with that is a key part of the small business strategy, and it is why we have put billions more into the British Business Bank. She has led on these issues, and I am of course happy to meet her to discuss the future of the programme that she mentions.
James Wild (North West Norfolk) (Con)
To show his deregulatory zeal, the Business Secretary just boasted about scrapping the British Hallmarking Council, which has one part-time employee. Given that every £1 of regulatory costs has the same impact on investment as £1 taken in tax, why are the Government proceeding with their unemployment Bill and proposing a £5 billion a year tax on British businesses?
Peter Kyle
It is quite extraordinary; after just a couple of weeks in the job, I have announced £230 million of deregulation every year—£1 billion-worth between now and the next general election—and what do the Conservatives do? They say that we are not going far enough. They had 14 years; I have had a couple of weeks! It is about time they started coming up with better questions, and stopped criticising a Government who act where they failed to.
Perran Moon (Camborne and Redruth) (Lab)
Meur ras, Mr Speaker. Spinning out of the industrial strategy is the eagerly awaited critical minerals strategy, the launch of which will happen in due course—or dreckly, as we say in Cornwall. It is of particular interest to my constituency. Canada, the US and Australia have already established new mineral exploration funds. Such funds support junior exploration companies in building up energy security and contributing to export-led growth. Is the Department considering such a fund as part of the critical minerals strategy?
Chris McDonald
I thank my hon. Friend for his continued advocacy for the Cornish critical minerals industry—in fact, I thank all our fantastic Cornish MPs. He knows that the critical minerals strategy is eagerly anticipated in Cornwall and across the UK. The minerals in Cornwall are crucial to the future of our critical minerals industry and the security of the UK. We have the largest lithium deposits in Europe; we need to take advantage of that. We will look at all options to ensure that we get the financing to exploit those minerals.
Josh Babarinde (Eastbourne) (LD)
Many small businesses rely on Facebook advertising to reach customers, but too many find that if they get hacked, it takes too long for Meta to let them back into their account. That has been the case for Andy Campbell, who runs ATR Carpet Cleaning. Will the Minister advise on how we can get the likes of Meta to reconnect these people with their accounts, because Meta is not doing that for us?
Blair McDougall
The hon. Gentleman makes an important point. One of my constituents is in a similar case, and it is devastating. For a large business, fraud and economic crime is an inconvenience; for a small business, it can be existential. That is one of the reasons why, this week, we are communicating with small businesses to ensure that they up their cyber-security. I am happy to meet the hon. Gentleman on this issue.
Sonia Kumar (Dudley) (Lab)
What steps is the Department taking to improve access to finance for UK start-ups seeking to scale up, given that only 1% of UK start-ups raise equity of more than £100 million? By comparison, in the US, 6% of start-ups do so. Furthermore, how can we ensure that women get a fair share of access to finance?
Peter Kyle
My hon. Friend asks exactly the right questions, which I am extremely grateful for, because they are central to the programme of economic reform that this Government are undertaking. She will know from the Mansion House reforms that we are unlocking capital into our economy via the pensions reforms being undertaken. We are making sure, right from the start, that women have a voice. I did the same in my role in the Department for Science, Innovation and Technology, and in this role, I will continue to ensure that women are championed right across the economy, that we get capital where it needs to be, and that we accept that we have brilliant businesses that need targeted intervention, which we will provide to make sure that scale-ups happen.
Grahame Morris (Easington) (Lab)
Power Roll in my constituency has pioneered a world-beating, flexible, lightweight solar panel module. The next four weeks are a critical period for the company; a £5 million investment is needed to keep production and jobs in the north-east. Will my hon. and right hon. Friends on the Front Bench work with me to help secure this Great British innovation’s future in east Durham?
Chris McDonald
I am familiar with Power Roll. I have met the chief executive, and my hon. Friend has advocated extremely well for the company. I have also met potential investors in the business. I am happy to discuss that further with him after questions today.
Amanda Hack (North West Leicestershire) (Lab)
In recent years, imported bricks have made up nearly 20% of the UK brick market, yet I know that organisations such as Ibstock Brick in North West Leicestershire can supply the bricks for the homes that we need. How do we make sure that UK brick manufacturers can maximise investment, employ local people and deliver the bricks that we need for the future?
Chris McDonald
I am determined that this Government’s grand ambition for building will ensure that we supply more UK bricks, have fewer imports, and increase the productivity of our brick kilns around the country, including at Ibstock. The key is getting energy prices down, and that is what we are working on for our industrial strategy.