Oral Answers to Questions Debate
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Main Page: Chris Bryant (Labour - Rhondda and Ogmore)Department Debates - View all Chris Bryant's debates with the Department for Business and Trade
(1 day, 6 hours ago)
Commons Chamber
Mr Andrew Snowden (Fylde) (Con)
From April, every pub and live music venue will get 15% off its new business rates bill, on top of the £4.3 billion of support announced in the Budget. Bills will then be frozen in real terms for a further two years. We have also raised the employment allowance from £5,000 to £10,500, meaning that 865,000 employers will pay no national insurance contributions this year. We are also going to allow pubs to open later in England and Scotland during the world cup, because they have already qualified, and I hope that Wales will also qualify so that we will be able to do the same for Wales.
Mr Snowden
From the Queens in Lytham to the Hop Shoppe in St Annes, the Hand & Dagger in Treales and the Thatched House in Poulton, Fylde is blessed with many wonderful pubs, but they were hit very hard by the changes to national insurance, and the looming business rates changes that will hit them hard have many of them worried. Some of the changes that have been announced are welcome but will not go as far as mitigating all the cost increases that pubs are facing. What more plans do the Government have to support such pubs?
I note the hon. Gentleman’s support for pubs in his constituency. It is obviously intense—he basically took us on a pub crawl there. If he is looking for a Valentine’s day dinner, perhaps with his wife, the Coach & Horses in Freckleton is offering two mains and two drinks for £25.99. But we will keep it quiet so that it is a surprise for his wife—or whoever else he takes. [Laughter.]
Maybe you will be taking his wife to the Coach & Horses, Mr Speaker—who knows?
On a serious point, we are fully aware of the problems that pubs and live music venues have been facing for a considerable period of time. For live music venues, we have been trying to encourage arena tickets to put an extra £1 on the ticket, on a voluntary basis, so as to be able to support live music venues. I am conscious that over the years many pubs have closed. The hon. Gentleman was not in the House under the previous Administration, but some 7,000 pubs closed in those 14 years, which is something like one every 14 hours. We are conscious of the problems, and we want to do everything we can to help.
Rachel Blake (Cities of London and Westminster) (Lab/Co-op)
Some 46% of the UK’s trade is with the EU, but we want to do far better, achieving trade with the EU that is as frictionless as possible. We are in the process of fine tuning the deal that we reached last year on food and drink, and negotiating on joining the single electricity market. We want to improve business mobility and secure the mutual recognition of professional qualifications. We have just appointed three new trade envoys—one for France, one for Germany and one for Italy—as part of our exports drive.
Rachel Blake
I listened carefully to the Minister’s response and am encouraged by the progress that is being made. When does he expect the UK-EU summit to take place? Is he expecting a completion of the negotiations on a sanitary and phytosanitary agreement and the youth experience scheme? Will he also update us on the approach to touring artists, to help ensure that they can access EU markets? That would make such a difference to the thriving cultural scene in the west end.
On touring artists, we are absolutely determined to secure that—not least because I have personally promised Elton John that we will, as has the Prime Minister. [Interruption.] I see the right hon. Member for The Wrekin (Mark Pritchard) chuntering. I think he is bidding to be a trade envoy for some country. If he would like to come and talk to me later, we can have a discussion about it.
The truth of the matter is that we had a terrible deal with the European Union. We need to improve it, and we are working at pace to try and deliver that. I want British businesses to be able to export without friction into the European market, because we know that is good for them.
Max Wilkinson (Cheltenham) (LD)
The Business Secretary raised some eyebrows at the weekend by suggesting that MPs’ pay should be linked to economic growth. Who does the Trade Minister think should get the biggest pay rise? Is it the Conservatives and Reform, who have probably knocked up to 8% off our GDP; Labour MPs, who are contributing to as much as 0.5% with all their accumulated trade deals, including with the EU; or Lib Dem MPs, who are suggesting a customs union that could put 2.2%—
Liberal Democrats are calling for a new UK-EU customs union—
Still! That would cut red tape for businesses across the country, boost growth by more than 2.2% and raise at least £25 billion a year in tax revenue. The Prime Minister’s chief economic adviser has recommended a customs union with the EU as one of the most effective ways of generating growth, the Health Secretary has talked up the benefits of a customs union and the Deputy Prime Minister has also suggested that countries within a customs union tend to see stronger economic growth. However, the Secretary of State for Business and Trade told the Financial Times last week that negotiating a customs union would be “foolish”. Will the Minister please explain how the Secretary of State plans to deliver growth without a customs union?
The hon. Lady knows that I think Brexit was a terrible, self-inflicted mistake. We need to make sure that we achieve what was promised by the Brexiteers, some of whom are sitting on the Conservative Benches, when they said we would achieve frictionless trade with the European Union as a result of our deal. I think that we can, first, do that on food and when we secure our SPS deal. We are working on the electricity market as well. Then we need to proceed with trying to ensure business mobility so that people can travel across the European Union and, as I said, we need to make sure that British artists and performers can perform across the whole of the European Union.
I have to say that it feels—I hate to use the term “groundhog day” in relation to the Lib Dems, but I can remember when they were in government. O Lord.
No, well quite. This is the problem: the Lib Dems never remember when they were in government and they landed us with half the problems that we are trying to sort out today.
Jessica Toale (Bournemouth West) (Lab)
Jayne Kirkham (Truro and Falmouth) (Lab/Co-op)
The UK is the fourth largest exporter in the world and the second largest in services, but we want to do even better, which is why we are pushing forward our new trade deals to cut barriers for UK businesses, strengthening UK Export Finance, providing tailored market advice and targeting resources so that businesses can take advantage of those deals.
Jayne Kirkham
I am grateful to the Minister for last week meeting me and a representative of Watson-Marlow, a business in my constituency, to discuss barriers to export. Many businesses I have spoken to have been frustrated about the difficulty of moving people, goods and equipment to Europe post Brexit, and they face significant additional costs and admin. Fugro and Pendennis yachts have raised with me issues they have experienced with securing visas for their staff on short-term offshore projects. What steps can the Minister take with colleagues at the Home Office to ensure that some of those barriers are reduced?
First, it was great that my hon. Friend and other MPs brought individual constituency businesses along, because one of the things I want to do as Minister for Trade is try to persuade all 650 colleagues to come along with individual businesses so we can work out where there are barriers to export and try to encourage export growth. If we could release all the MPs, who probably know the businesses in their constituencies far better than the Department does, we would drive forward export growth. She is absolutely right that there are issues with visas and business mobility that we need to address. It is one of the things that the Home Office and the Department are discussing with our European allies. We need to do better on this, and we also need to get to a place where we have mutual recognition of professional qualifications so that people can simply transact their business more effectively.
With reference to what the Minister said earlier about trade and investment envoys, I remind him that I was a trade and investment envoy to Georgia and Armenia some years ago. The problem is that the trade and investment envoys are now pretty much all Labour, whereas previously, under all Prime Ministers, they were cross-party. Can I suggest that the Government revisit the strength of having a cross-party approach? That might help business exports. I think he publicly offered—unless I misheard—for me to become a trade envoy again; if I was approached, I might do that. On a serious point, on UK Export Finance in high-risk investment areas, such as rebuilding Syria by getting jobs and investment into that country quickly, can I ask that UK Export Finance underwrites with insurance those high-risk investments?
I noted that there was another application, but just because the right hon. Gentleman has applied for the job, it does not necessarily mean that he will get it. He makes a good point about UK Export Finance, particularly in war-torn and other difficult areas. It is why we set aside a specific amount of money for Ukraine. I was delighted to be in Kyiv the best part of 10 days ago, where the Russian Government are, I would argue, engaging in war crimes by deliberately targeting the heating systems in the city—many elderly and vulnerable people have no heating, electricity or access to water. I was very proud to see Scottish steel and British architects designing the bridges that are helping Ukrainians to get to work again after the original bridges were blown up when the Russians tried to invade as part of their full-scale invasion. He makes a good point about export finance. I have also had discussions about how we can roll that out in relation to Syria.
Ms Julie Minns (Carlisle) (Lab)
Last week I visited the brilliant family-run Clark Door company in my Carlisle constituency. Clark Door designs, manufactures and exports right across the globe, and supplies venues such as the Tate Modern, the Qatar national centre and, topically as we approach next weekend’s super bowl, the National Football League media centre in New York. What support can the Government give to exporters such as Clark Door so that their pioneering research and development ensures their continued export success, and will the Minister visit Carlisle to take a look behind the—Clark—door?
We are doing well on UK exports, which were up to £929 billion in the 12 months ending November 2025—up 4% on the year before. I am happy to consider ensuring that UK Research and Innovation, which is part of the Department for Science, Innovation and Technology, provides R&D support. Getting all our different strategies working together—the trade, business and industrial strategies—combined with UKRI, will drive exports forward. I cannot promise a visit, because I seem to be sent abroad a lot.
Lincoln Jopp (Spelthorne) (Con)
Defence and aerospace make up a huge element of our export business. As the Minister knows, plans without resources are hallucinations. The defence investment plan was promised to us in the autumn, and then by the end of the year, but it is still not there. When will the Government get their act together and stop dithering over the defence investment plan so that we can fuel our export economy?
Defence is an important part of both our industrial strategy and our export strategy. We are running a series of export campaigns, which are either titled “platinum” or “gold”, and several of them relate to defence expenditure. For instance, when I was in New Zealand just before Christmas, we talked about the potential for the UK to build a new dry dock and provide frigates for the New Zealand navy. I will ensure that the hon. Gentleman, who makes a fair point, gets an answer from the Ministry of Defence, which has primary responsibility for that area.
We know that some British businesses are put off exporting by the costs, particularly the cost of cross-border payments. One solution is the adoption of innovative digital payment methods, which is why I warmly welcomed the Government’s announcement of the transatlantic taskforce for markets of the future. However, since its announcement last September, we have not had a great deal of detail on it from the Government, so will the Minister provide an update on the status of the taskforce and what he hopes it will achieve for our exporters?
I will certainly write to the shadow Minister about that. Electronic commerce generally is one thing that we will need to address at the World Trade Organisation ministerial conference in Cameroon at the end of March. There has been a moratorium on tax in relation to that, and we would like to make it permanent—we are discussing that with our international allies.
On exports, I was at Fever-Tree on Monday morning. Its adverts used to say, “If three quarters of your gin and tonic is the tonic, why on earth do you not care about the tonic?” [Interruption.] I note that several Members are querying whether three quarters of their gin and tonic is the tonic—it might be 50:50, or even the other way around. The point is that many really successful businesses in this country, including Fever-Tree, know that three quarters of their business can be exports. That is what we need to drive up.
I thank the Minister for that response. This is an area that we genuinely agree on. Digital payment technology will genuinely provide an opportunity for British exporters, so I gently ask the Minister to get on top of the detail on that taskforce and provide an update as soon as he can. We asked DBT Ministers last June exactly what the Government’s strategy on digital payment technology was. We were promised that it would be part of the industrial strategy, but it was missing. Can he explain why?
The Under-Secretary of State for Business and Trade, my hon. Friend the Member for East Renfrewshire (Blair McDougall), has just whispered in my ear that he met the main providers in this area only a couple of weeks ago. As I say, I will write to the hon. Member with some more detail. Some of these issues are difficult to land because of the international co-operation needed. I am pleased that in some of our trade deals we are talking about not just goods and services but ensuring a digital element, because that is where a lot of our economic future lies.
Mr Jonathan Brash (Hartlepool) (Lab)
Iqbal Mohamed (Dewsbury and Batley) (Ind)
We regularly assess Israel’s compliance with, and commitment to, international humanitarian law. It was those assessments that led us in September 2024 to suspend licences where the items might be used in military operations in Gaza. Most of the licences suspended at that time have since expired, but we have continued to refuse licence applications on the same basis.
Iqbal Mohamed
The Secretary of State said that revisiting the pause on arms export licences to Israel was “intrinsically linked” to movement towards a so-called sustainable peace. Since then, during the so-called ceasefire, Israeli forces have killed over 481 Palestinians in Gaza, struck defenceless tents housing cowering families and bombed to kingdom come schools used as civilian shelters. What they have not done is allow the flow of humanitarian aid; instead, 37 international non-governmental organisations have been suspended. Yet this Government continue with a business-as-usual approach to arms trade with Israel. How can the Government justify revisiting the decision to pause arms export licences, rather than suspending arms exports altogether, to pressure Israel to comply with international law?
I agree with one part of what the hon. Member said, which is that we do want to see humanitarian aid get to the people who need it, and we need to see a proper, lasting peace, based on peace and justice, working together, and that is our commitment. He is, however, completely wrong to suggest that it is business as usual. We have suspended some licences, in particular where we think that because of Israel’s failure to comply with international humanitarian law they might be used in relation to operations in Gaza. Export licences are required only in relation to military and dual-use equipment, and some of that dual-use equipment is used by non-governmental organisations—armour for journalists and things like that—so of course it is right that we adopt a case-by-case approach. As I say, we have suspended a series of licences where we think that there is a threat to Gaza, but we maintain the export licence criteria that were laid out in Parliament.
Joe Robertson (Isle of Wight East) (Con)
Chris Vince (Harlow) (Lab/Co-op)
The Secretary of State has asked me to reply, because he is in China with the Prime Minister. In the last few weeks, our Department has concluded an enhanced trade deal with the Republic of Korea, published a critical minerals strategy and secured the Employment Rights Act 2025, which will see the biggest improvement in employment rights in a generation. At home and abroad, we are resolutely on the side of business, tackling barriers to trade, improving productivity, driving up growth and winning business for Britain. Growth is up, productivity is up and business confidence is up.
Chris Vince
Last weekend, I had the pleasure of visiting the Advanced Aquarium Consultancy in my constituency of Harlow, where they breed, grow and sell coral. I am not going to make any coral jokes, which will be a reef to everybody. [Hon. Members: “Oh!”] What is unique about Advanced Aquarium Consultancy is the amount of energy it needs to use. What are the Government doing to support such businesses to bring down energy costs?
I was told that my hon. Friend was going to ask a question about choral farms; I was wondering how one farmed tenors, altos and contraltos. He makes a very fair point. As the Under-Secretary of State for Business and Trade, my hon. Friend the Member for Stockton North (Chris McDonald), said earlier, there is a whole series of industries for which the cost of energy is a significant part of the problems they face. That is precisely the kind of work that we are engaged in as a Department and as a whole Government, and why it is so important that my hon. Friend is in two Departments and therefore able to bridge these issues.
Yet again, the Business Secretary is not here for his departmental questions. This time, he is in China, trying to sort out the mess that is British steel strategy. He is burning through £2 million a day of taxpayers’ money keeping the Scunthorpe furnace going, the Chinese owners are asking for £1 billion in compensation, and decommissioning could cost more than £2 billion. His steel strategy is literally melting before its long-awaited publication. Given that when the Prime Minister negotiates, Britain loses, what is a good outcome here?
Honestly! [Laughter.] Sometimes my heart wants to fall through my body when I hear Conservative Members, who seem to have completely and utterly lost the plot, whether it is enormous, multibillion-pound demands for extra cash they are making or anything else. As I understand it, the hon. Member for Arundel and South Downs (Andrew Griffith) is a chartered accountant, but he does not seem to be able to count, while the hon. Member for West Worcestershire (Dame Harriett Baldwin) seems to forget that when she was in government, the previous Prime Minister refused even to visit any of the steel companies in this country. We are determined to get a good outcome.
The hon. Member for West Worcestershire attacks the Business Secretary for going to China, but it is important that we engage with all the big economies in the world. China is our fourth biggest export market, and there are lots of businesses doing trade with China. She is absolutely right that we have to get a good set of outcomes for steel, which is why we will soon produce a steel strategy that will answer all her questions. At a previous session of Business and Trade questions, I said that we wanted to publish soon what we will do with our steel trade tariffs after July.
Madam Deputy Speaker, you can see why the Business Secretary needs to be here to answer questions, because I did not hear an answer to my question. I will try a different topic, which is also really important to our constituents. Sixteen million of them got their Royal Mail parcels and letters late this Christmas—my constituents have made many, many complaints. What has the Minister done to hold Royal Mail to account for its unacceptable level of service?
I think every single Member has heard similar complaints about service delivery. I am aware of people in my constituency receiving letters for NHS appointments after the appointment itself. The Under-Secretary of State for Business and Trade, my hon. Friend the Member for East Renfrewshire (Blair McDougall), is meeting Royal Mail next week. We really need to ensure we get a better service across the whole country, and that is something we are absolutely focused on achieving.
Graham Leadbitter (Moray West, Nairn and Strathspey) (SNP)
We have been working hard to secure good outcomes for many businesses in the hon. Gentleman’s constituency. Walker’s Shortbread is doing a phenomenal job of exporting around the world. I know that because I have seen them in supermarkets in Auckland, Melbourne, Dubai and all over the place. Similarly, we are trying to get a good deal with the United States on whisky. We already have a good deal with India on whisky, and the Prime Minister and others will be talking about whisky in China over the next few days. I do wish the hon. Gentleman would be a bit cheerier. He has one of the most beautiful constituencies in the land. Whether it is the Lairig Ghru, the Rothiemurchus estate, the ospreys in Loch Garten, or Loch an Eilein, it is absolutely beautiful. He could just be a bit cheerier!
Emma Foody (Cramlington and Killingworth) (Lab/Co-op)
Rebecca Smith (South West Devon) (Con)
We have already had quite a bit of a discussion on business rates and I do not have much to add to that. I will just say that the health and beauty sector is not only a sector in the UK, but one that is vital to our new exports. I am sure the hon. Lady is aware of this, but because we managed to get tariffs down on beauty products in our free trade agreement with India, we have been facilitating lots of businesses going out to India as part of a trade fair to drive up our exports around the world. The whole of the sector has an opportunity to prosper when we manage to secure better free trade agreements.
Josh Fenton-Glynn (Calder Valley) (Lab)
Almost one in three pubs in this country is a tied pub. In Calder Valley, one such pub saw its payments to Stonegate jump from £800 to £1,700 a week, just days after the six-month probationary period ended. I welcome the Government’s support for pubs, but that pub will still be paying 17 times more to Stonegate each year than it will in business rates. Will the Minister look at those unfair charges, and what can be done in regulation?
Catherine Fookes (Monmouthshire) (Lab)
Recently I met with employees and union reps from SYNLAB, a thriving pathology laboratory in Abergavenny. It has been taken over, and now more than 30 jobs are at risk, meaning that these highly skilled opportunities in science, technology, engineering and maths could move out of my constituency. I thank the Under-Secretary of State for Business and Trade, my hon. Friend the Member for Halifax (Kate Dearden), for meeting me earlier this week, but would she meet with colleagues in the Welsh Government and myself to discuss how we ensure that we keep these kinds of high-tech jobs in Wales, as it should not just be big cities that benefit from these STEM opportunities?
I pay tribute to my hon. Friend; it is great that she is a Member of this House because we hear her unambiguous support for small businesses up and down her constituency—not just in the big towns, but in the small villages, as she says. She is right that Wales is a good place for high tech. I am delighted that £1.4 billion of additional investment was announced at the Welsh investment summit in December, taking the total linked investment since the summit was launched to £16 billion. I am sure that that is going to deliver more jobs across south Wales in precisely the way that my hon. Friend asks for.
While I always enjoy the soliloquies of the Minister of State, it might be an opportunity for the Minister who has responsibility for Royal Mail and postal services to answer this question, given that I wrote to his office about the catastrophic failure of the letter delivery service throughout Shropshire. Would he agree to meet with me and my hon. Friend the Member for South Shropshire (Stuart Anderson) to discuss resolving that issue?
Jayne Kirkham (Truro and Falmouth) (Lab/Co-op)
The Minister mentioned the music venue levy earlier. He knows that my constituency has amazing music venues, so when will the first payment from that levy be made to those smaller venues?
I am afraid that I have changed job since I was pushing that levy very hard. The intention was for those payments to be happening fairly soon. I will ensure that the Minister for Creative Industries, Media and Arts responds directly to my hon. Friend. The levy is a really important opportunity. Every time someone goes to a big arena gig, there should be a £1 levy on their ticket. I urge all promoters, artists and concert arrangers to ensure that that money gets to small music venues.
Tessa Munt (Wells and Mendip Hills) (LD)
The use of the toxic chemical paraquat was banned in the UK by the previous Labour Government in 2007. It is associated with the development of Parkinson’s and is deemed too dangerous for use on our own soil, but continues to be produced here and sent elsewhere, perpetuating harms that would not be tolerated at home. What is the policy on exporting UK-manufactured products such as paraquat to other countries?
Dave Robertson (Lichfield) (Lab)
I thank the Minister for Industry for his engagement with Ceramics UK this week, meeting the organisation and ceramics companies from across Staffordshire, Stoke-on-Trent, the west midlands and further afield. He will have heard from them about the importance of getting ceramics firms into the super- charger scheme. I was pleased to hear what he said about trying to extend eligibility, so could he give us an idea of when we might hear some positive news on that front?
Ben Obese-Jecty (Huntingdon) (Con)
The Ajax armoured vehicle programme is currently under threat, but work is due to be completed at the Merthyr Tydfil factory next summer. Could the Minister confirm whether there are any conversations through the UK Defence and Security Exports office around securing an export package for the Ajax vehicle and guaranteeing work at the factory going forwards?
Obviously we would like to do so. As the MP for the next-door constituency, and having visited the factory myself, I am keen to ensure that we do so. A large part of this programme is a Ministry of Defence responsibility, and I will make sure that the MOD writes to the hon. Gentleman.
I return again to the steel industry, and thank the steel Minister for the meeting we held a few weeks ago. I was contacted by a couple of employers in Scunthorpe last week who expressed concern about recent reports of publicly funded contracts using foreign-produced steel. Could the Minister give an assurance that British-produced steel will take priority in such cases?
As co-chair of the all-party parliamentary group on Latin America, I was interested to note that, after 25 years of negotiations, the EU has announced a trade deal with the Mercosur South American trading group. What is the position of the UK Government on a trading agreement with Mercosur?
It is certainly true that now that the EU has secured a Mercosur deal, having taken 25 years to do so, there is a danger that British business will be left out and excluded because there will be preferential rates for European businesses. It is something we are looking at very closely, and I hope to be able to update the right hon. Gentleman very soon. As he knows, I am passionate about trying to increase our exports to Latin America. I would just note that some companies, such as Inca Kola, were created by British firms.