Oral Answers to Questions

Chris McDonald Excerpts

Thursday 29th January 2026 Commons Chamber

[Nick Smith (Blaenau Gwent and Rhymney) (Lab)]

1. What steps he is taking to help reduce industrial energy costs.

[The Parliamentary Under-Secretary of State for Business and Trade (Chris McDonald)]

The Government recognise the challenge of high industrial energy costs. From April we will raise the discount on electricity network charges from 60% to 90% under the network charging compensation scheme, supporting around 550 electricity-intensive businesses. This year we also plan to review eligibility for the British industry supercharger and the energy-intensive industries compensation scheme. From 2027 the British industrial competitiveness scheme will cut electricity costs by around £35 to £40 per MWh for around 7,000 manufacturing businesses.

[Nick Smith]

Under the last Conservative Government we had soaring energy costs and the highest industrial energy bills in Europe. Now, under Labour, manufacturers, including those in Blaenau Gwent and Rhymney, have seen costly levies taken out. Will the Minister please outline what else the Government can do to bring energy bills down further for UK industry?

[Chris McDonald]

I thank my hon. Friend for championing the businesses in his constituency. One such business, GS Yuasa Battery Manufacturing in Gwent, is receiving support from the supercharger, exempting it from several renewables levies and electricity network usage costs. This is all part of the Government’s clean energy superpower mission, which will cut costs, boost energy security and accelerate grid connections.

[Sir Alec Shelbrooke (Wetherby and Easingwold) (Con)]

I have a fantastic Yorkshire brick company in my constituency. Unfortunately it had to go into administration, but it was rescued. As welcome as the supercharger scheme is, the problem was that the company did not qualify because it did not meet the business level test, so it did not get any Government support. Can the Government engage directly with ceramics manufacturers, which are huge users of electricity, gas and various other products, because if we export products to be made elsewhere, the carbon footprint is often much bigger than if we had made them locally?

[Chris McDonald]

The right hon. Gentleman knows that I share his concerns about the ceramics industry. He is quite right that many ceramics companies failed to qualify for the supercharger. There will be a review of the supercharger this year, and I have asked officials to look very carefully at the potential to include ceramics companies in it. I discussed that with the ceramics industry at an event in Parliament this week, which the right hon. Member attended—as, I think, did the Yorkshire brick company that he mentioned. I can also inform him that I and my hon. Friend the Minister for Trade will meet ceramics industries in the near future.

[Mr Andrew Snowden (Fylde) (Con)]

2. What steps his Department is taking to support pubs in Fylde constituency.

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[Lizzi Collinge (Morecambe and Lunesdale) (Lab)]

9. What steps his Department is taking to help increase economic growth in Morecambe and Lunesdale constituency.

[The Parliamentary Under-Secretary of State for Business and Trade (Chris McDonald)]

The Department is driving economic growth by delivering the long-term certainty that businesses need and by supporting the growth of businesses across the UK, including in Lancashire, where the Lancashire business growth hub is ensuring that businesses in Morecambe and Lunesdale have the advice to grow, to scale up and to succeed.

[Lizzi Collinge]

In my constituency of Morecambe and Lunesdale, we have the Electech innovation cluster, which is a growing group of small and medium-sized firms, many of which supply specialist components into the clean energy sector, particularly nuclear, and into the vital defence sector. The Minister would be welcome to visit them. How is the Department supporting SMEs, such as those in the Electech innovation cluster, and how will they benefit from the Government’s investment in industry?

[Chris McDonald]

I thank my hon. Friend for her work in championing small businesses in her constituency, particularly the Electech cluster, where businesses such as Teleplan Forsberg, Like Technologies and Mazuma are working in the clean energy sector. Our clean energy industry sector plan focuses on capitalising on the strengths of these businesses and doubling investment levels across our frontier industries to more than £30 billion a year by 2035. That will directly support businesses in that cluster. I would of course be delighted to come and visit.

[Peter Swallow (Bracknell) (Lab)]

11. What steps he is taking to improve workers’ rights in Bracknell Forest.

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[Emma Foody (Cramlington and Killingworth) (Lab/Co-op)]

T5. The north-east has one of the largest pharmaceutical clusters, identified in the north-east growth plan as a key growth sector. My constituency has some of the leading companies, such as Organon and Sterling Pharma, who are providing good-quality jobs and exporting around the world. How are the Government backing our pharmaceutical sector, and supporting the north-east to secure and expand opportunities in this area?

[The Parliamentary Under-Secretary of State for Business and Trade (Chris McDonald)]

I thank my hon. Friend for the work she is doing to highlight the north-east’s role as a key part of our life sciences and pharmaceutical industries. She mentions Organon in her constituency. Its Cramlington site was singled out by the leadership of that business at the J. P. Morgan healthcare conference in San Francisco recently. In two weeks’ time, I will be opening Fujifilm’s biotechnology factory in Billingham in my own constituency—a £400 million investment in north-east biosciences. Our life sciences sector plan is backing the pharmaceutical manufacturing industry with £2 billion of investment and our UK-US deal is delivering zero-tariff access for UK pharmaceutical exports.

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[Shockat Adam (Leicester South) (Ind)]

When will the Government announce the results of their British industrial competitiveness scheme consultation, and provide the fabulous manufacturing industry in my constituency with some much-needed help towards its energy costs?

[Chris McDonald]

The hon. Gentleman is right to point out that the British industrial competitiveness scheme will provide a significant discount to up to 7,000 manufacturing businesses of up to 25% of their energy costs. It will certainly help manufacturing businesses in his constituency and across the whole UK. I encourage businesses in the hon. Gentleman’s constituency to contribute to the consultation, the results of which we will announce in due course.

[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?

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[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?

[Chris McDonald]

I am grateful to my hon. Friend for so clearly representing the importance of the ceramics firms in his constituency. I heard the message loud and clear from the ceramics industry this week about the impact of energy costs and, as I mentioned earlier, in the review of the supercharger scheme, I have asked my officials to look carefully at the opportunities for including the ceramics sector.

[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?

[Martin Vickers (Brigg and Immingham) (Con)]

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?

[Chris McDonald]

I thank the hon. Gentleman for his positive and constructive engagement on this issue. I do understand the concerns of the steelworkers in Scunthorpe. I know precisely the projects he is referring to; they were not procured under public procurement rules, and the developers and tier 1 contractors involved have followed their own rules and commitments. However, it is the case that this Government want to see more British steel used in both public and other projects around the country, which is a matter both for developing steel capability and, potentially, for reviewing our procurement rules.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

For the final question, I call David Mundell.