UK Modern Industrial Strategy

Debate between Baroness Neville-Rolfe and Lord Leong

Monday 30th June 2025 Lords Chamber

[Lord Leong (Lab)]

I thank the Lord for that question. He makes several very interesting observations. The reason we have published this industrial strategy is what I mentioned earlier about the global trading environment, but we also have a very clear goal. We want to drive growth. I know many noble Lords have mentioned it, but it is still the number one mission of this Government, and we can achieve that only by better and increased investment. The noble Lord is right. Previous Governments have published investment strategies, but why is this investment strategy different? Past growth plans have often been felt by businesses as being done for them, so it looks as though government knows better and this is what the industrial strategy is for, whereas with this industrial strategy, we work with businesses every step of the way. We have meetings with business representative organisations—in fact, I have learned a new word, “BROs”; we work with trade unions and investors so that this strategy is not only a government strategy but a whole-of-business strategy. That is the first difference. The second difference is that we have listened to the needs of businesses, the need for long-term certainty. Every business that I have spoken to wants three things: certainty, stability and less regulation. That is what the Government are trying to solve through their strategy to reduce regulation by 25%. This is still very much a work in progress, but it is what we are aiming for. We hope that this strategy is different from previous strategies.

[Baroness Neville-Rolfe (Con)]

My Lords, I want to ask the Minister about the apparently “Cinderella” areas of retail, hospitality and tourism, which have all been hit terribly hard by the Chancellor’s NICs hikes, especially the reduction in the NICs threshold to £5,000, which has led to shop and cafe closures in my home area of Wiltshire. There is barely a reference to their contribution in the industrial strategy, yet in the Conservative and Blair years there was an understanding of the innovation, growth and jobs for which retail, hospitality and tourism were responsible, with minimal cost to the Exchequer. Can the Minister explain why they have been abandoned?

[Lord Leong (Lab)]

We are not abandoning any industry or sector. This strategy identifies the top-growing sectors, the IS-8 as we call them, which make up 30% of the total business sector in this country but contribute some 60% of the national economy. Obviously, it is the Government’s position to support them. As for retail, hospitality and others, we have other support plans in place; for example, the business rates scheme.

Let us not beat around the bush: the high street is changing and people’s shopping habits have changed but, at the same time, we need to revitalise the high street. Hopefully, when we publish the small business strategy in due course, it will cover how we will revitalise the high street. In other parts of the hospitality sector, be it cafés, restaurants or pubs, it is a very mixed picture. Some pubs are closing down, but not because we have come into government; they were closing down way before then. In the case of the pub in my village—a very small village pub—a year ago it seemed only a matter of time before it closed down. It was sold to a young couple, they changed it and now it is flourishing; you cannot even get a table there. So, pubs need to change.

Audit, Reporting and Governance Authority

Debate between Baroness Neville-Rolfe and Lord Leong

Monday 31st March 2025 Lords Chamber

[Lord Leong (Lab)]

I thank my noble friend for that question and for all the work he has done in the actuarial sector itself. Let us not get ahead of ourselves. The Government are committed to publishing a draft Bill in this Session of Parliament. Until such time, it is important that we do not pre-empt the contents of the Bill.

[Baroness Neville-Rolfe (Con)]

My Lords, the Chancellor has written to other regulators encouraging them to look at ways to help the economy to grow and be more competitive. What are the plans in this area for encouraging growth and competitiveness?

[Lord Leong (Lab)]

The noble Baroness makes a very good point. It is important that, whichever regulator we have, it is effective. Currently, the regulator has some weaknesses in its powers; the new regulator will, I hope, address those weaknesses. It is important that, when anyone looks at the accounts, investors have confidence to make investment decisions. That will drive business and growth.

UK Entrepreneurs

Debate between Baroness Neville-Rolfe and Lord Leong

Wednesday 4th December 2024 Lords Chamber

[Lord Leong (Lab)]

My Lords, I thank the noble Lord for his question. The Government are committed to attracting investment. That was illustrated in our recent International Investment Summit, where £65 billion was pledged in this country, showing confidence in the Government. I remind noble Lords that in the past few years, FTSE 100 companies have been sitting on a gross cash pile of close to £160 billion, with pre-tax profits ranging from £500,000 to around £2 billion. Shareholders’ dividends have been rising three times faster than wages. We should pay staff well and pay suppliers on time. If more money is spent, companies will make bigger profits—it is a win-win situation.

[Baroness Neville-Rolfe (Con)]

I have listened to the Minister. Does he acknowledge that the measures announced in the Budget, such as the increase in capital gains tax, make the UK look like a less attractive place for entrepreneurship?