Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of private sector productivity, and what assessment they have made of how private sector productivity affects economic growth.

Answered by Lord Livermore - Financial Secretary (HM Treasury)

Like many advanced economies, the UK has experienced a slowdown in productivity growth rates since the global financial crisis, but this has been sharper than our peers. UK productivity growth fell to the second slowest in the G7 under the previous government at an average of 0.6 per cent a year - lower than France, Germany and the US. Low investment and falling growth in total factor productivity (TFP) were key factors in this slowdown.

Increasing productivity is vital in driving economic growth. That is why growth is the priority mission of this Government and why we continue to take steps to boost productivity, including through boosting TFP.

This includes increasing the capital envelope by over £100 billion at the Budget in October and a further £13 billion at Spring Statement 2025 compared to the plans set out at Spring Budget 2024. We are also catalysing over £70 billion in private investment through the creation of the National Wealth Fund, removing barriers to investment through ambitious planning reforms, and championing growth-enhancing sectors through our modern Industrial Strategy.

Question to the Department for Science, Innovation & Technology:

To ask His Majesty's Government what steps they are taking to implement regulation on the use of facial recognition technology aided by artificial intelligence.

Answered by Lord Vallance of Balham - Minister of State (Department for Science, Innovation and Technology)

The Government believes that the vast majority of AI systems should be regulated at the point of use and that our existing expert regulators are best placed to do this. Oversight of this technology is distributed across several sectoral regulators and departments, including the Information Commissioner's Office, who ensure its compliance with data protection law. Through delivery of the AI Opportunities Action Plan, we are making sure regulation is well-designed and implemented, to fuel fast, wide and safe development and adoption of AI.

Question to the Department for Energy Security & Net Zero:

To ask His Majesty's Government what steps they are taking to ensure the UK achieves its target of 43 to 50 gigawatts of offshore wind capacity by 2030.

Answered by Lord Wilson of Sedgefield - Lord in Waiting (HM Household) (Whip)

This Government has been clear that the answers to the challenges around energy security, affordability and sustainability point in the same direction – clean energy. The Government has launched its Clean Power 2030 Action Plan setting out a detailed plan for achieving the target of clean power by 2030. The plan includes a bold set of measures focused on delivering a once-in-a-generation upgrade to Britain’s energy infrastructure, including cleaning up the queue to connect the right projects in the right place, fixing the planning system to fast-track critical clean energy infrastructure, and reforming our renewables auctions to secure a strong pipeline of technologies including offshore wind.

Question to the Department for Education:

To ask His Majesty's Government what assessment they have made of the capacity of UK universities to meet increased demand for science and engineering degree programmes, and what steps they are taking to ensure that the availability of university places aligns with demand.

Answered by Baroness Smith of Malvern - Minister of State (Minister for Women and Equalities)

Universities are autonomous institutions and are therefore responsible for curriculum development and capacity planning. It is primarily for individual institutions to assess and manage their capacity to meet student demand for specific programmes, including those in science and engineering.

The government recognises the critical importance of science and engineering degree programmes in driving the UK's innovation and economic growth. We have recently announced that for the 2025/26 financial year we will be investing £845 million via the Strategic Priorities Grant in high-cost subject funding, which supports universities to deliver courses in various priority subjects, including science and engineering.

Skills England is the new national body for skills and it will play a crucial role in identifying skills needs and meeting those to support economic growth. Skills England will work closely with the higher education sector to identify and address local, regional and national skills priorities, including the science and engineering provision that is strategically important for our country.

Question to the Department for Energy Security & Net Zero:

To ask His Majesty's Government what assessment they have made of the impact of high energy costs on energy-intensive sectors, and what steps they are taking to reduce energy costs for those industries.

Answered by Lord Wilson of Sedgefield - Lord in Waiting (HM Household) (Whip)

This Government recognises high energy prices are a key challenge for UK businesses, including those in energy-intensive sectors. We are working closely with businesses and industry to consider actions needed to support key sectors and address the challenges they currently face.

Our Clean Power 2030 target is the key to long-term sustainable price reductions. Our mission is for clean power by 2030 because clean, homegrown energy is the best way to protect billpayers and boost Britain's energy independence. We are also already bringing energy costs for UK industries closer in line with other major economies through the British Industry Supercharger. This fully exempts eligible firms from certain costs linked to renewable energy policies, particularly those exposed to the high cost of electricity. Government will always keep support under review based on the needs of industry.

Question to the Department for Business and Trade:

To ask His Majesty's Government what assessment they have made of the amount of capital in the United Kingdom being invested overseas, particularly in the United States of America; and whether they intend to introduce measures to encourage greater investment within the United Kingdom.

Answered by Baroness Gustafsson - Minister of State (Department for Business and Trade)

The total stock of UK assets invested abroad was £13.4 trillion in 2023 according to the ONS Pink Book of this £4.7 trillion was invested in the United States. While the total stock of foreign investment in the UK was £14.1 trillion in 2023. The UK government promotes and facilitates inward foreign direct investment in the UK through the newly expanded Office for Investment (OFI), FDI leads to direct economic benefits for the UK. The UK allows free movement of international capital, both inward and outward investment can lead to business opportunities, higher economic growth and higher investment returns.

Question to the Department for Environment, Food and Rural Affairs:

To ask His Majesty's Government what steps they are taking to ensure the UK’s food security remains intact, and what estimate they have made of the number animals which are physically checked when imported.

Answered by Baroness Hayman of Ullock - Parliamentary Under-Secretary (Department for Environment, Food and Rural Affairs)

The UK has a resilient food supply chain and is equipped to deal with situations with the potential to cause disruption.

Food security is built on supply from diverse sources, strong domestic production as well as imports through stable trade routes.

UK consumers have access through international trade to food products that cannot be produced here, or at least not on a year-round basis. This supplements domestic production and also ensures that any disruption from risks such as adverse weather or disease does not affect the UK's overall security of supply.

Defra works with industry and across Government to monitor risks that may arise. This includes extensive, regular and ongoing engagement in preparedness for, and response to, issues with the potential to cause disruption to food supply chains.

The UK Agriculture Market Monitoring Group monitors UK agricultural markets including price, supply, inputs, trade, and recent developments.

Our systems record by consignments and depending on species there may be multiple animals within a consignment. In 2024, the number of physical checks undertaken on live animal consignments being imported into the UK was 15,030.

Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the impact of business tax rates on small businesses; and what plans they have to adjust these rates to better support small enterprises.

Answered by Lord Livermore - Financial Secretary (HM Treasury)

The Government has carefully considered the impact of business tax rates on businesses, within the context of the difficult fiscal inheritance and the need for businesses to help contribute to fixing the foundation and repair our crucial public services.

The Government recognises the vital role that small businesses play in supporting the economy and local communities.

At the Budget in October the Chancellor introduced a range of measures to support small businesses. These included:

• More than doubling the Employment Allowance to £10,500. This means more than half of businesses with NICs liabilities will either gain or see no change this year.
• Maintaining the Small Profits Rate and marginal relief at their current rates and thresholds, as well as maintaining the £1 million Annual Investment Allowance; and
• Freezing the small business multiplier for 2025/26 meaning that, taken together with Small Business Rate Relief, over a million properties are protected from inflationary bill increases.

Looking forward on business rates, we intend to introduce permanently lower tax rates for retail, hospitality & leisure properties with rateable values under £500,000, including those on the high street, from April 2026.

The Government keeps all areas of the tax system under review. Any changes to the tax system are announced as part of the annual Budget process.

Question to the Department of Health and Social Care:

To ask His Majesty's Government what steps they are taking to bring forward reforms to improve NHS efficiency.

Answered by Baroness Merron - Parliamentary Under-Secretary (Department of Health and Social Care)

The merger of NHS England and the Department will lead to a smaller, leaner and more agile department. Alongside this, the restructuring of integrated care systems and commissioning support units is set to reduce running costs and NHS England is also tackling corporate cost growth in providers. These ongoing reforms will transform the way the centre and the National Health service works, prioritise resources for the front line and deliver significant efficiency savings. NHS efficiencies also include more effective use of medicines, commercial levers, automation, shared corporate services and reduced use of agency staff.

Looking forward, the funding provided at the recent Spending Review will enable the NHS to achieve 2% productivity growth each year, and we will shortly be publishing the 10-Year Health Plan that will set out the wider reform agenda.

Question to the Department of Health and Social Care:

To ask His Majesty's Government what assessment they have made of the use of artificial intelligence in the identification of patients with prostate cancer who would benefit most from treatment with abiraterone.

Answered by Baroness Merron - Parliamentary Under-Secretary (Department of Health and Social Care)

We are committed to transforming diagnostic services and will support the National Health Service to increase capacity to meet the demand for diagnostic services through investment in new capacity, including artificial intelligence (AI) where it is beneficial to do so.

AI can be used to accelerate the diagnosis and treatment of a number of diseases, including prostate cancer. This technology enables patients to be seen more quickly, which increases their likelihood of a successful outcome whilst simultaneously being more cost effective.

Through the AI in Health and Care Award, the Department has provided £113 million to test and evaluate AI technologies in crucial areas. Two of the tools funded by the AI award are Ibex Medical Analytics’ AI System and Paige Prostate Cancer Detection Tool. Both of these tools help with the early detection and grading of prostate cancer. Funding from the AI award helps to generate the evidence needed to deploy effective AI tools across the NHS and improve the lives and health outcomes of our population.

Question to the Department for Science, Innovation & Technology:

To ask His Majesty's Government what assessment they have made of the need to regulate the artificial intelligence sector, and what assessment they have made of the potential risks of harm if such technology is left unregulated.

Answered by Lord Vallance of Balham - Minister of State (Department for Science, Innovation and Technology)

AI is not unregulated in the UK. A range of existing rules already apply such as data protection, competition, equality legislation and other forms of sector regulation.

The vast majority of AI systems should be regulated at point of use by existing regulators. In response to the AI Action Plan, the Government committed to identifying capability needs for regulators to mitigate AI risks and drive growth. Advanced AI systems pose distinct opportunities and risks, and we are developing legislative proposals to allow us to safely realise the benefits of these systems. We will launch a public consultation in due course.

Question to the Department for Science, Innovation & Technology:

To ask His Majesty's Government what steps they are taking to support the development of artificial intelligence growth zones across the UK, and to ensure those zones are spread throughout the country.

Answered by Lord Vallance of Balham - Minister of State (Department for Science, Innovation and Technology)

The AI Opportunities Action Plan set out the governments ambition to deliver AI Growth Zones (AIGZs) to accelerate the development and deployment of large-scale AI infrastructure. These zones will fast-track planning processes and unlock access to critical energy and land resources.

Following an Expressions of Interest exercise earlier this year, the government has now launched a formal qualification process to identify suitable AIGZs. The government is working closely with devolved governments and local authorities to progress potential AI Growth Zones across the country.

Question to the Department for Science, Innovation & Technology:

To ask His Majesty's Government what steps they are taking to encourage the development of artificial intelligence in the UK and to ensure that the sector retains a strong base in the UK.

Answered by Lord Vallance of Balham - Minister of State (Department for Science, Innovation and Technology)

The Prime Minister launched the AI Opportunities Action Plan in January. It sets out 50 far reaching actions needed to drive up the development and deployment of AI. Government accepted all 50 recommendations.

Progress has been made across a range of actions, including holding the first AI Energy Council meeting, signing an MOU with Anthropic, and opening the formal AI Growth Zone application process. The Spending Review 2025 will further cement the UK’s leadership in AI, driving economic growth and fostering a safer, healthier, and more prosperous society.

The Government is driving forward AI development and adoption through the AI Opportunities Action Plan - taking decisive steps to position the UK as a global AI maker, not just a taker.

Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of levels of consumer confidence and whether they plan to implement measures to increase it.

Answered by Lord Livermore - Financial Secretary (HM Treasury)

Consumer confidence, as measured by the commonly used GfK survey, rose by 3 points in May 2025, with all sub-components recording an improvement in sentiment. The Government monitors consumer confidence alongside other relevant economic indicators for understanding developments in the UK economy.

Consumer confidence is intrinsically linked to household finances and the broader economic outlook. The Government is delivering on its commitments in the Plan for Change to raise growth and living standards. This is already delivering for working people, with three new trade deals protecting jobs, boosting investment and cutting prices, a pay rise for three million workers through the National Living Wage, and real wages rising by more since the election than in the first ten years of the previous Government.

Question to the Department for Science, Innovation & Technology:

To ask His Majesty's Government what steps they are taking to ensure that the United Kingdom remains an attractive destination for foreign investment in the technology sector, particularly in artificial intelligence infrastructure.

Answered by Baroness Jones of Whitchurch - Baroness in Waiting (HM Household) (Whip)

The UK is a global leader in technology and artificial intelligence, offering world-class talent, pro-innovation regulation, and leading research institutions. To strengthen our position, we have developed a new Digital and Tech Sector Plan, which will follow publication of the Industrial Strategy, to drive growth and innovation. We are also unlocking investment through wider reforms like the Mansion House Accord, British Growth Partnership, and National Wealth Fund—mobilising over £100 billion of additional capital. Our AI Opportunities Action Plan sets out how we will build AI infrastructure, including through AI Growth Zones, ensuring the UK remains an attractive destination for AI investment and development.

Question to the Department for Energy Security & Net Zero:

To ask His Majesty's Government what steps they are taking to invest in increased energy storage solutions to reduce the cost of turning off wind farms and sourcing alternative energy sources.

Answered by Lord Wilson of Sedgefield - Lord in Waiting (HM Household) (Whip)

The Clean Power Action Plan was launched in December 2024 and sets out a pathway towards deploying more low carbon flexible technologies. The Clean Power Action Plan suggests we could need 4-6GW of Long Duration Electricity Storage (LDES) by 2030, up from 2.8GW today, and also outlines plans for the deployment of grid scale battery storage.

The Government and Ofgem are supporting the development of the next generation of LDES facilities with a cap and floor investment support scheme. We are also streamlining planning processes for storage projects to help reduce system constraint costs across the electricity network.

Question to the Department for Science, Innovation & Technology:

To ask His Majesty's Government what assessment they have made of further integrating artificial intelligence into the civil service, following the recent Government-led trial of artificial intelligence software.

Answered by Lord Vallance of Balham - Minister of State (Department for Science, Innovation and Technology)

As referenced in the GDS Digital Government Blueprint, AI Opportunities Action Plan, and more recently, the Spending Review, integrating Artificial Intelligence (AI) into the civil service is a core priority of this government, with the goal of delivering a lean and agile state, where expenditure is focussed towards services on which the public rely.

The model for delivering AI into the civil service includes both central focus from GDS, and also dispersed expertise within departments who understand the complex landscape of public service delivery. Tools are also being trialled across GDS, as well as within departments such as MHCLG, Home Office, HMRC, DHSC and MoJ. Many of these trials are underpinned by technology and tools created by the government's incubator for Artificial Intelligence (i.AI).