Oral Answers to Questions

Blair McDougall Excerpts

Thursday 30th October 2025 Commons Chamber

[Euan Stainbank (Falkirk) (Lab)]

14. What recent progress he has made on implementing the industrial strategy.

[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.

[Mr Speaker]

I call the shadow Minister.

[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—

[Nick Timothy (West Suffolk) (Con)]

Do you even know what the question was?

[Hon. Members]

More!

[Blair McDougall]

Thank you, Mr Speaker. I am glad that those on the Opposition Benches recognise excellence when they see it.

[Mr Speaker]

I call the Liberal Democrat spokesperson.

[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)]

6. What steps he is taking to help support business growth through his Department’s plan for small and medium-sized businesses.

[Jo Platt (Leigh and Atherton) (Lab/Co-op)]

11. What steps he is taking to help support business growth through his Department’s plan for small and medium-sized businesses.

[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.

[Mr Speaker]

I call the shadow Minister.

[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)]

8. Whether he has had recent discussions with the Secretary of State for Work and Pensions on increasing the use of British-built cars by Motability Operations.

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[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.

[Mr Speaker]

I call the Liberal Democrat spokesperson.

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[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?

[Claire Young (Thornbury and Yate) (LD)]

T5. Small and medium-sized businesses in my constituency have told me about the impact that Trump’s trade war is having on their ability to export to the United States. What is the Secretary of State doing to support these vital job creators and ensure that British goods can continue to be sold worldwide?

[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?

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[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?

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[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?