(2 weeks, 1 day ago)
Commons Chamber
Irene Campbell (North Ayrshire and Arran) (Lab)
After the damage wrought by successive Conservative Governments, we have successfully reset relations with the devolved Governments. Thanks to the hard work of Eluned Morgan, Anas Sarwar and our brilliant Welsh and Scottish Labour MPs, we have provided the largest uplifts to their budgets since devolution began.
I very much welcome the additional £505 million of investment that the Chancellor announced in last week’s Budget through the Barnett formula, building on the biggest settlement since devolution. Does my right hon. Friend agree that this is another example of two Labour Governments working together for the benefit of the people of Wales, which is in complete contrast to how we were treated by the Conservatives?
I agree that this is but one fantastic example of two Labour Governments working together to deliver for the people of Wales, in stark contrast with 14 years of Conservative Governments ignoring Welsh leaders in the Senedd. Just the other week, we announced two AI growth zones and the UK’s first small modular reactor in Anglesey, alongside historic investment in Welsh rail earlier this year. Through that, we are creating 11,000 new jobs across Wales. That is thanks, again, to two Labour Governments working together for the people of Wales.
Katrina Murray
Does the Minister agree that in my constituency, where people are struggling to access healthcare, it is vital that the SNP Government make effective use of the recent funding uplift to finally deliver the long-promised elective treatment and diagnostic centre in Cumbernauld, so that we can cut waiting lists and get my constituents the care they need?
My hon. Friend will know that it was Nicola Sturgeon, campaigning less than a month before the 2021 Scottish Parliament election, who promised a new elective treatment and diagnostic centre for the people of Cumbernauld. Four and a half years later, my hon. Friend’s constituents are still waiting, and the SNP Government have admitted that they will not be building it any time soon. This Labour Government have committed billions of pounds in extra funding for Scottish public services, but voters in Cumbernauld and across Scotland will rightly be asking the SNP Government the question, “Where’s the money gone, John?”
Irene Campbell
Does the Minister agree that with a Labour Government at Holyrood working with a UK Labour Government, constituencies like North Ayrshire and Arran could be much better off, because nuclear policy in Scotland could change and sites like Hunterston, which is currently blocked from investment by SNP policy, could be developed to support small modular reactors, bringing good jobs to the community and playing a key part in our energy supply?
In England and Wales, Labour Governments are investing billions of pounds to deliver a new generation of clean, safe nuclear power. Hunterston, in my hon. Friend’s constituency, is just one of the communities in Scotland that could benefit from this investment, if it was not for the SNP Government’s outdated and ideological ban on nuclear power. Their student politics approach is holding Scotland back. Only a vote for Scottish Labour and Anas Sarwar next May will deliver the jobs and growth that nuclear power could offer Scotland.
Despite the Government’s assurances, they and the Scottish Government fail to communicate in many ways. As a Scottish MP, I am used to the frustrating process of being sent from one to another, with nobody taking responsibility. Access for All is a great example. The new ramp at Leuchars station, which serves St Andrews, could provide effective step-free access, but nobody knows when the new scheme is coming and how it will be administered in Scotland. Can I get an assurance that conversations are taking place about the scheme?
I can confirm that Ministers across Government, including myself, the Prime Minister and others in relevant Departments, engage with our counterparts in the Scottish Government frequently, and we wish to unblock problems to improve delivery for the people of Scotland. If the hon. Lady writes to me on the particular issue that she raises, I will ensure that it is taken into account. Perhaps next time, SNP Members might come to oral questions to hear about the issues directly.
The Minister is a gentleman—that is never in question. What steps will be taken to respect the principle of devolution and avoid legislating on behalf of the Northern Ireland Assembly without genuine necessity? I ask everyone to cast their minds back to 2019, when the Conservative Government brought in abortion legislation in Northern Ireland against the will of the Northern Ireland Assembly and against the will of the people of Northern Ireland. This House endorsed it. Mr Speaker, what can be done to ensure that that never, ever happens again?
I think it comes from mutual respect and dialogue, which this Government have exhibited since we have come into office. That is in stark contrast to the relationship over the previous 14 years. The Northern Ireland Secretary and I, alongside the Prime Minister, engage with the Deputy First Minister and the First Minister on these issues routinely, and we will continue to try to provide the best answers for the people of Northern Ireland.
Alex Brewer (North East Hampshire) (LD)
Dr Al Pinkerton (Surrey Heath) (LD)
Since coming to office, the Government have secured a new strategic partnership with the EU to deliver on jobs, bills and borders. We are repairing the damage inflicted by the Conservatives’ botched Brexit deal, which left food businesses paying £200 on paperwork for every single consignment shipped in from the EU. We have made significant progress since our historic May summit, including negotiations on a food and drink deal, which will slash red tape for businesses and bring down prices for consumers.
Alex Brewer
Given that Brexit has left a £90 billion hole in the UK’s tax revenues and that small business owners in my constituency of North East Hampshire are telling me that the last two Budgets have been “catastrophic” for them, why are the Government not pursuing a bespoke UK-EU customs union to cut red tape, boost economic growth and support British businesses?
The Prime Minister was very clear in the House yesterday that we will be honouring our manifesto commitments on a single market and a customs union—we will not be rejoining those institutions. However, there is a great deal of work that can be done between the botched deal we inherited from the Conservatives—from their acrimonious relationship, when Britain and the European Union refused to talk to each other in the interests of either of them—and the new relationship that the Prime Minister has built with his counterparts in Europe to deliver for the people of the United Kingdom.
Andrew Cooper
Recent efforts to secure UK participation in the EU’s Security Action for Europe initiative, which aims to strengthen defence capacity across the continent in response to escalating Russian threats, appear to have come to an end without agreement. While it is right that the UK only enters agreements that clearly support our national interest and represent value for money, we must continue to play a leading role in European security. Will the Minister outline how the Government intend to build momentum for renewed UK-EU co-operation in this area?
I thank my hon. Friend for his important question. The United Kingdom remains committed to our role in European security in the face of rising threats. As the House will know, the Prime Minister has led the coalition of the willing to combat Vladimir Putin’s aggression in Ukraine and has worked tirelessly to strengthen our relationships with our allies, including across Europe. We are working quickly with the EU to implement our ambitious security and defence partnership, and have already stepped up our co-operation on key issues such as tackling hybrid threats and our collective support to Ukraine.
Dr Pinkerton
On “The News Agents” podcast yesterday evening, the Deputy Prime Minister, when asked about a UK-EU customs arrangement, said
“that journey of travel…is self-evident”.
Given that the botched Brexit deal is costing the UK Exchequer £90 billion a year, can I ask what that self-evident journey means for the Government’s own red lines? Will the Government take the opportunity to take a giant leap on that journey by supporting my ten-minute rule Bill next Tuesday?
I have to confess that I have not listened to “The News Agents” podcast that the hon. Member refers to, but I know you will be pleased to hear, Mr Speaker, that what is self-evident is what is said in this House, not on podcasts. The Prime Minister was very clear yesterday on the position the Government hold in relation to a single market and a customs union, while also improving our trading and security relationships, which is what we will continue to deliver on.
Luke Myer (Middlesbrough South and East Cleveland) (Lab)
The agreement in May included the restoration of the UK’s country-specific steel quota, but in October we saw new steel protection measures from the EU. Do the Government expect the article 28 GATT––general agreement on tariffs and trade—process to be honoured for those quotas, and will trade measures be set out prior to the steel strategy?
I thank my hon. Friend for his question. As he will understand, my right hon. Friend the Minister for the Cabinet Office is in discussions with counterparts in the European Union about the changing global landscape for steel. This Government are very clear that we should protect British steel and our capabilities to produce steel in the UK, while supporting exports and making sure that British steel is not undercut by cheap global imports from around the world.
I am sure people will be pleased to hear that the Labour party is going to honour some of its manifesto commitments.
Last week, it was announced that the Government’s attempt to join the new EU defence fund had failed. This is a major setback for our relationship with the EU, and it is a major embarrassment for the Government. Since that time, no Minister has come to the House to explain what on earth has gone so horribly wrong, so perhaps the Chancellor of the Duchy of Lancaster can tell us: what has gone so horribly wrong?
First, regardless of the negotiation on SAFE, our collaboration with European partners is stronger than ever on defence and defence procurement. In relation to SAFE in particular, about which the hon. Member asked, this was always going to be a negotiation between the EU and the UK, and the UK Government rightly have to consider value for money considerations in return for how much access British industry has to the contracts being negotiated in Europe. Irrespective of the position on SAFE, I can confirm to the House that UK companies will still be able to take part in European procurement for defence equipment, with an up to 35% allowance for British components in those manufactured goods.
I admire the Chancellor of the Duchy of Lancaster’s chutzpah in answering. He pretends that this was in some way not a defeat, but a victory—many more such victories, and we are lost.
The House will remember that in May, No. 10 trumpeted a new agreement with the EU, which gave the EU privileged access to our fishing waters for 12 years—12 years—to
“pave the way for the UK defence industry to participate in the EU’s proposed new…defence fund”.
Now that the EU has killed off that deal with what the Chancellor of the Duchy of Lancaster rightly describes as an unreasonable demand for £5 billion, are we going to get our fish back?
The hon. Member will know that the agreement with the European Union was not just on one particular issue; it was a package of improvements in the relationship between the UK and the EU. He might want to welcome the agreement on food and drink regulation reforms, so we can get prices down on the shelves in British supermarkets, after they went through the roof under the last Conservative Administration.
Lisa Smart (Hazel Grove) (LD)
Following threats from Donald Trump, earlier this week the Government announced that between £3 billion and £6 billion each year will be diverted from our NHS services into the pockets of pharmaceutical giants. The American Health Secretary, Robert F. Kennedy Jr., said the agreement shows Trump’s
“courage and leadership in demanding these reforms”
and that he puts Americans first. That will give no comfort to my Hazel Grove constituents, who rightly value our NHS and want to see it thrive. Does the Chancellor of the Duchy of Lancaster agree that we are more isolated from our European allies following Brexit, making us far too vulnerable to the threat of American tariffs? What will it take for the Government to rethink their red lines and protect the British people from further bullying from the White House, by agreeing a bespoke UK-EU customs union with our European neighbours?
The agreement reached on pharmaceuticals is a win for the United Kingdom. We have an enormously important sector for pharmaceutical research and development and production in the United Kingdom, which exports many of its products to the American market, so to have agreed the tariff arrangements with the United States is a win for UK pharma and the people who work in it. I would just point to the fact that the UK’s relationship with the United States, thanks to our Prime Minister, has been one of the most productive relationships in the world in securing trade and security agreements both for the UK and to support our allies around the world.
Lisa Smart
I note the right hon. Gentleman’s response. It may well be good for the pharma industry; my question was whether it is good for the NHS. Just four days ago, the Prime Minister said that the Brexit deal “significantly hurt our economy” and that we have to keep moving towards a closer relationship with the EU. I agree with the Prime Minister. A clear and welcome step for jobs and growth would be to create a bespoke customs union with the EU. The Liberal Democrats want to cut unnecessary red tape, support British businesses and deliver sustainable long-term economic growth. I am sure the Chancellor of the Duchy of Lancaster does, too. I agree with his earlier comment that what happens in this House matters, so will he at least agree not to block his colleagues on the Government Benches from backing the ten-minute rule Bill that my hon. Friend the Member for Surrey Heath (Dr Pinkerton) will move next Wednesday, which sets a path towards a bespoke EU-UK customs union—
Mr Speaker, there is obviously a great deal of interest on the Liberal Democrat Benches in their ten-minute rule Bill, which I look forward to reading in due course.
Kenneth Stevenson (Airdrie and Shotts) (Lab)
Since I last addressed the House, the Prime Minister announced the new Office for the Impact Economy, based in the Cabinet Office. From building affordable homes to giving children up and down the country the best start in life, social enterprises and community foundations are fundamental to delivering the change that this Government were elected to deliver. Changing lives for the better happens from the ground up, as well as from the top down. The Office for the Impact Economy will allow those organisations to engage with Government directly to get the support they need, and it will help public funding work harder by bringing philanthropists and other social investors together with communities that need investment. I look forward to updating the House further on this issue in due course.
Kenneth Stevenson
While passengers are experiencing short-term pain of long waits as the EU entry-exit system becomes fully operational, can the Minister confirm his Department is working to ensure that the agreement obtained by this Labour Government to allow British access to e-gates will, in the long term, cut queues and improve the travelling experience for my constituents in Airdrie and Shotts and other Members’ constituents?
British passport holders will be able to use e-gates across Europe, allowing for more time to be spent on holiday and less time spent held up in queues. This is a positive step forward in expanding our access across the EU. The Paymaster General and Minister for the Cabinet Office is working with individual member states to make this happen as soon as possible.
A few weeks ago I wrote to the Chancellor of the Duchy of Lancaster about Chinese ownership of critical national infrastructure, including the possible acquisition of Thames Water. I have not had a reply, but since then The Telegraph has been briefed by the Government that the Chancellor of the Duchy of Lancaster would block such an acquisition. Can he confirm to the House that he will use his powers under the National Security and Investment Act 2021 to launch an investigation before any Chinese acquisition of Thames Water is allowed to proceed?
The House will know that because of the quasi-judicial powers I have under the National Security and Investment Act 2021, I cannot comment on individual transactions. I can assure the hon. Gentleman that we are always willing to use those powers to protect the national interests and national security of this country. I do not recognise that briefing to The Telegraph, but I will ensure that he gets an answer to his correspondence shortly.
Well, someone was briefing in the right hon. Gentleman’s name. I thank him for his answer, but on the same theme, the electricity distribution network for London and much of the south-east, as well as the gas distribution network for about 5 million people in our country and the water supply for about another 3 million, are currently under Chinese ownership. That includes the power supply for the Palace of Westminster, Whitehall and many security capabilities. Will the Chancellor of the Duchy of Lancaster tell us whether he has reviewed the national security implications of these legacy acquisitions? If not, will he commit to doing so?
I can reassure the hon. Member and the House that we constantly keep critical national infrastructure risks under review and will take interventions as required to protect the national interest and national security of the United Kingdom.
Joe Powell (Kensington and Bayswater) (Lab)
Sarah Bool (South Northamptonshire) (Con)
We will always negotiate in Britain’s interest and ensure value for money for the taxpayer and benefit for the UK economy. I can confirm that not only has the Paymaster General agreed to meet with the Chair of the EFRA Committee, but the relevant Minister from the Department for Environment, Food and Rural Affairs will be appearing to give evidence in the normal way.
Sean Woodcock (Banbury) (Lab)
Bradley Thomas (Bromsgrove) (Con)
Rachel Taylor (North Warwickshire and Bedworth) (Lab)
Callum Anderson (Buckingham and Bletchley) (Lab)
I congratulate my hon. Friend on securing so much investment in his constituency. The Office for the Impact Economy will be working with philanthropists and social investors, as well as corporate givers and others, to support programmes led by the Government, such as Pride in Place and other public investments, to deliver a better bang for our buck and the renewal of communities across the country, including in Bletchley. I look forward to working with my hon. Friend to deliver on that promise of change.
The Cabinet Office has an important role to play in publishing data to enable the public to track the Government’s performance. Does the Chief Secretary to the Prime Minister agree that it would be helpful to have data on the number of prisoners wrongly released every day by the Justice Secretary?
I will ensure that my right hon. Friend the Secretary of State for Justice receives the hon. Gentleman’s question, which he can maybe raise again in Justice questions when they come round.
Charlie Dewhirst (Bridlington and The Wolds) (Con)
Tomorrow will mark a year to the day since the Government launched the plan for change, to great fanfare, with its milestones, its mission boards, and its dashboards that never materialised. We have now found out that the five mission boards have been deleted from the latest list of Cabinet Committees. Has there been any change at all from the plan for change?
I welcome the introduction of the plan for change to the debate today, and the hon. Gentleman will be as excited as I am about the promise of change being delivered: five interest rate cuts; mortgage rates coming down; wages growing faster than the cost of living; NHS waiting lists down not by 2 million, 3 million or 4 million, but by 5 million appointments; a better start in life for young people across the country—
Joe Robertson (Isle of Wight East) (Con)
The Minister does not know who in the Labour party signed off on Lord Alli’s pass to No. 10. It is an important question. Please could he find out and write to me and tell me who?
Further to the question from the hon. Member for Cambridge (Daniel Zeichner), most food insecurity in Northern Ireland comes from a lack of money, not a lack of food. What discussions has the Minister had with his counterparts in Northern Ireland on improving the root causes of food insecurity among all our constituents?
I know that through the finance interministerial and the interministerial standing committee, leaders and relevant Ministers discuss a whole range of issues relevant to Northern Ireland, including this, with colleagues from the Department for Environment, Food and Rural Affairs and others. I am always happy to have those conversations with the First Minister and the Deputy First Minister, if that is of help.
(1 month, 1 week ago)
Written StatementsThe social impact investment advisory group’s final report was published on 3 November 2025 and sets out recommendations on how the Government could better partner with the impact economy to contribute billions to national priorities, such as supporting early years and health. A key recommendation from the report was to create an office at the heart of Government to drive this change.
In response to the social impact investment advisory group’s final report, the Government are launching the Office for the Impact Economy. Strategically housed within the Cabinet Office, this new team will report to me, as Chief Secretary to the Prime Minister, as I serve as the ministerial lead.
The Office will function as a clear front door to enable the Government to partner more strategically and effectively with the impact economy, including philanthropists, social and impact investors, purpose-driven business and civil society. The office will help ensure that every pound of public funding works harder, and that impact capital and purpose-driven business are harnessed and grown in support of national renewal.
The Office for the Impact Economy will employ a hub-and-spoke operating model to facilitate cross-governmental collaboration. The office will bring together Departments across Government, including the Department for Culture, Media and Sport, HM Treasury, the No. 10 partnerships unit, and the Department for Business and Trade, all of which will continue to hold their established policy and delivery relationships. The Office for the Impact Economy will work closely with the Office for Investment, which works with large pools of impact aligned investment and with the Office for Responsible Business Conduct.
[HCWS1041]
(1 month, 3 weeks ago)
Commons Chamber
Mrs Elsie Blundell (Heywood and Middleton North) (Lab)
The Prime Minister has asked me to help drive the Government’s delivery of the public’s priorities: boosting living standards, fixing our NHS and securing our borders. I and the team are focused on changing how Government works, to build the foundations of a modern British state that delivers for the British people, using modern technology with more accountability and by breaking down silos and outdated hierarchy.
Lewis Atkinson
Could my right hon. Friend outline what role he thinks digital ID could play in supporting public sector reform?
I thank my right hon. Friend the Secretary of State for Science, Innovation and Technology for her dedicated work on the Prime Minister’s recent announcement on digital identity. As of today, the Cabinet Office has responsibility for the policy, legislation and strategic oversight of the digital ID programme, with the Department for Science, Innovation and Technology leading on technical design, build and delivery. Together, we will work to build the foundations of a modern British state that delivers better public services for people across the country, and digital ID will play a part in that work.
Mrs Blundell
The last Government left the public services on which our constituents rely on their knees, with many just about keeping their head above water, and the Probation Service is no different. Since being elected, I have come to understand the dire ramifications of what can go wrong when local probation services are not performing to the standard that local people should expect, especially when it comes to the suitable placement and proper monitoring of serious offenders post release. What engagement is taking place between the Cabinet Office and the Ministry of Justice to ensure that when errors are made by local probation delivery units, there is proper accountability and corrective measures are taken to protect our constituents from those who could still cause them harm?
I know that my hon. Friend has been a vocal campaigner for her constituents in relation to the injustice experienced through the Probation Service in and around her constituency. Public protection is, of course, a key priority for this Government, and serious further offences, although rare, are devastating for victims and their families. The Ministry of Justice and His Majesty’s Prison and Probation Service take learnings from serious further offence reviews, inspectorate of probation reports and internal audits to identify opportunities for improvement, and the Cabinet Office supports those Departments in these endeavours.
In my constituency, organisations such as Just the Job, Yatton House, Northdale and Chopsticks provide valuable services for adults with complex disabilities and learning difficulties, so will the Minister join me in commending them? May I urge him to continue the work that I know his Department is doing on exploring where local voluntary and charitable organisations can play an effective and efficient role in delivering public services for local communities?
May I join the right hon. Member in celebrating the success of the organisations in his constituency? He and the House will know that when the Government talk about delivery, we are really talking about those organisations that deliver real change for people’s lives, not about processes in Whitehall. It is organisations in the voluntary sector, as well as Whitehall Departments, local authorities and private sector businesses, that help us deliver that change across the country.
I thank the Minister for his very positive answers. What steps have been taken to improve community healthcare services, to ease the pressures on our hospitals and encourage more care in local areas?
The hon. Member will no doubt have heard from the Health Secretary in Health questions and subsequent statements about the NHS 10-year plan, which is moving the delivery of services from hospitals into the community. We know that too many patients end up in A&E, for example, making hospital delivery very difficult, because they cannot access support and care in the community. That is why the Department of Health and Social Care has been setting out its plans for supporting the delivery of care services in the local community, where local people are.
Michelle Scrogham (Barrow and Furness) (Lab)
Kenneth Stevenson (Airdrie and Shotts) (Lab)
The Prime Minister has asked me to help to drive forward delivery of the public’s priorities. In Scotland, we have delivered more money for public services than at any point since devolution began—an extra £9.1 billion over the next three years. I know that my hon. Friend and his constituents in Airdrie and Shotts will expect to see that money invested in Scotland’s NHS, schools and frontline policing, instead of being frittered away by the SNP.
Kenneth Stevenson
In less than 18 months, this Government have delivered defence contracts that will support Scottish jobs for years to come; invested in the pride of place scheme, which will see Scottish town centres rejuvenated, including those in North Lanarkshire; and committed record funding to the Scottish Parliament to invest in Scottish public services. Does my right hon. Friend agree that that stands in stark contrast to the priorities of the SNP in government in Holyrood, which has just wasted more taxpayers’ money on producing yet another tired paper on independence, while one in six Scots wait on NHS waiting lists?
My hon. Friend rightly recognises the defence dividend that Labour has delivered for Scotland, including the recent £10 billion frigate deal with Norway. As my hon. Friend’s constituents will know only too well, more people have waited over two years for NHS treatment in Lanarkshire alone compared with the whole of England—that is a remarkable stat. Next year, voters in Airdrie and Shotts and across Scotland will look at that record and have the chance to vote out the tired SNP Government, who are failing to deliver on public services in Scotland, and choose a new direction with Anas Sarwar and Scottish Labour.
Josh Babarinde (Eastbourne) (LD)
The Cabinet Office co-chairs the flood resilience taskforce in order to deliver on its priority to bolster flood defences, but residents in Eastbourne at this very point in time on Wartling Road, Seaside and Whitley Road—and, earlier this week, on Macmillan Drive—have to wade through canals created by flooding brought about by adverse weather. The work being done to protect against flooding is not enough. Will the Minister meet with me and other stakeholders to figure out how we can best protect residents, businesses and schools such as Motcombe school from the flood risk?
I am sorry to hear about the situation in the hon. Gentleman’s constituency. He knows that the Government take flood risk very seriously, and it is a key risk in our national risk register. That is why the Government have increased spending on flood defences significantly in the recent Budget and spending review, but I absolutely recognise that there is more to do. I will ensure that we look at the specific circumstances in his constituency and help him to understand when funding will come to support his constituents.
Lisa Smart (Hazel Grove) (LD)
I think the Government are right to identify economic growth as a key priority. I also agree with the Chancellor, who this week identified Brexit as one of the reasons that they are finding growth tough to find. Brexit red tape is a millstone around the neck of our economy; it has added 2 billion pieces of extra business paperwork, piled on costs and stifled innovation. Businesses in my constituency tell me they have stopped selling to our nearest neighbours in the world’s largest trading bloc altogether. Does the Minister agree that if the Government are serious about growing our economy, they should unleash trade by joining a bespoke customs union with the European Union?
May I welcome the hon. Lady to her new spokesperson role? We recognise the impact that Brexit has had on the UK economy, which is why we have entered into a new trade deal in our first year in government with the European Union. A very key part of that is the sanitary and phytosanitary agreement for food and drink trade, which my right hon. Friend the Member for Torfaen (Nick Thomas-Symonds) is working on with European counterparts at the moment. Once that is implemented, we look forward to seeing trade improve, growth increasing and prices coming down on the shelves in supermarkets across the United Kingdom.
Mr Bayo Alaba (Southend East and Rochford) (Lab)
Jessica Toale (Bournemouth West) (Lab)
Keeping our country and our citizens safe is the first duty of this Government, and the Cabinet Office plays a central role in that endeavour. My right hon. Friend the Security Minister and I regularly bring Ministers together from across Government to take decisions that strengthen our country’s national security. Recently, my Department published the resilience action plan, and we are now implementing the national security strategy, which sharpens our efforts to improve national security.
Jessica Toale
Later today, my hon. Friend the Member for South Dorset (Lloyd Hatton) and I will meet small and medium-sized enterprises in the defence sector and skills training providers to discuss how we in Dorset can benefit from the Government’s defence industrial strategy. Can the Chancellor of the Duchy of Lancaster tell me how this Government’s commitment to increasing defence spending to 2.5% by 2027 will create jobs and growth in my constituency of Bournemouth West?
I thank my hon. Friend for her question, and welcome the companies from her and her colleague’s constituencies to Parliament today. As she knows, this Labour Government are committed to the largest sustained increase in defence spending since the end of the cold war. Our strategic defence review and defence industrial strategy will also make defence an engine for economic growth, creating jobs and driving innovation in every nation and region. I particularly thank institutions such as Bournemouth and Poole college and Bournemouth University for their important work, and for their focus on developing defence skills for the future and creating jobs for young people in my hon. Friend’s constituency.
Nick Timothy (West Suffolk) (Con)
There are reports that Jonathan Powell wrote a box note to the Prime Minister on the China spy trial. When No. 10 was asked about this, the official spokesman said that it was for the Cabinet Office to answer, and as Chief Secretary to the Prime Minister and Chancellor of the Duchy of Lancaster, the right hon. Gentleman is uniquely placed to tell us. Did Powell write a box note to the Prime Minister —yes or no?
Liz Jarvis (Eastleigh) (LD)
Martin Rhodes (Glasgow North) (Lab)
In May, we committed to strengthening our presence in Scotland and across the UK, ensuring that talent from across the country can have a full career in the civil service without having to move to London. My first visit as Chief Secretary to the Prime Minister and Minister for intergovernmental relations was to Scotland, and I was delighted to visit the Cabinet Office’s second headquarters —based in my hon. Friend’s constituency of Glasgow North—which will continue to offer more careers and opportunities in the civil service.
Martin Rhodes
Does the Minister agree that having different roles and different levels of positions within the civil service in Glasgow and in Scotland is important so that people can progress their careers while remaining in Glasgow or in Scotland?
I absolutely agree with my hon. Friend. We want senior roles in locations across the country and not just in London. That is why we have committed to ensuring that 50% of UK-based senior civil service jobs are located outside London by 2030. I should add that on my visit to the Cabinet Office headquarters in my hon. Friend’s constituency, we met senior civil servants there, and we look forward to returning again in the months ahead.
This is my first appearance at the Dispatch Box as Chief Secretary to the Prime Minister. In this role, I have been tasked with modernising the state to build a system that will better deliver the public’s priorities and better communicate the changes we are making across the country. Sadly, too many political parties today wish to tear down our institutions and the public services we all rely on as the solution to the public’s frustration with a legacy system that struggles to deliver change, but there is an alternative. This Government are committed to renewal and delivering on the promise of change. We will build a modern state and better public services that are there when people need them. We will lead the way to a Britain renewed.
With your permission, Mr Speaker, I will just answer the question from the official Opposition that I could not answer in substantive questions about when I was informed of the Crown Prosecution Service decision to not proceed with the case. I was informed of this decision after the Prime Minister. I should also inform the House that I look forward to answering more questions before the Joint Committee on the National Security Strategy on Wednesday next week.
Shaun Davies
Transforming Britain’s public services will be a mammoth task, but while the white heat of artificial intelligence and digital technology offer a revolutionary opportunity to improve performance and value for money in healthcare, tax services and everything in between, will the Government seize this opportunity to modernise our public services, working with the brightest and best industries across Britain?
The answer is absolutely yes. All our constituents know from their experiences at home, whether they are trying to do their banking, do their shopping or book a holiday, that they have the power to do it, when they want to do it, how they want to do it, on their phone, with services delivered in the way they want. That is in complete contrast to a number of our public services, and the public rightly expect, when they are paying tax money for public services, that we catch up with the private sector and deliver better public services that work in the way they want.
I thank the Chancellor of the Duchy of Lancaster for giving us a degree more clarity. Perhaps he will give us a degree more clarity again. Was he told that the alleged case of spying against Members of Parliament was due to collapse before the information became public and, if so, who told him?
I believe the right hon. Gentleman, but I find that answer extraordinary, and I think he should find it extraordinary, too. As we have already said, the right hon. Gentleman chairs the National Security Council. He oversees the Cabinet Office’s national security secretariat. The Prime Minister knew, the Home Secretary knew, the Cabinet Secretary knew, the chief of MI5 knew, the Attorney General’s Office knew, but the Chief Secretary to the Prime Minister did not. Has he asked why he was not told, and what answer was he given?
The hon. Member seems to be confused by his list of institutions. The only relevant institution in this case is the Crown Prosecution Service. It is the CPS that independently decides whether to bring forward these cases, and it was the independent decision of the Crown Prosecution Service not to proceed. Might I just point out that the Opposition’s arguments over the last few weeks have been quite bemusing? They started with an accusation that there was political interference in a Crown Prosecution Service case. That was proven not to be the case, so they changed their argument and are now asking, “Why did you not politically interfere, because that is the way we do things in this country?”
Ms Julie Minns (Carlisle) (Lab)
The Government take seriously the risk of climate change and the risk it poses to national security. That is why we are taking action to mitigate that risk and to reduce our carbon emissions. As the hon. Lady will know, we publish the outcomes of routine assessments done by the Government in relation to the national risk register on gov.uk, and that will continue to be the case.
Gurinder Singh Josan (Smethwick) (Lab)
Bradley Thomas (Bromsgrove) (Con)
The Government agree with the principle of the hon. Member’s question. As I said to the House earlier, we want to reduce the layers of bureaucracy and to be able to deliver more action and fewer words. That is why we are taking action to close arm’s length bodies and other institutions. Most significantly, we have announced that we will close NHS England and bring decisions back into the Department for Health and Social Care for Ministers to make.
Patrick Hurley (Southport) (Lab)
Ben Maguire (North Cornwall) (LD)
Residents in a housing development in my constituency are facing a number of issues after yet another developer has gone bust. Parts of the shared communal land have reverted back to the ownership of the Duchy of Cornwall, rather than to the residents themselves, who have to purchase the land back and cover the duchy’s legal costs. The Chancellor of the Duchy of Lancaster, quite rightly, has Cabinet oversight, but who does the Duchy of Cornwall answer to and what recourse do my constituents now have in this case?
If the hon. Member writes to me with his constituency case, I will make sure that the Duchy of Cornwall looks at it in due course.
Josh Babarinde (Eastbourne) (LD)
Eastbourne is benefiting from some coastal defence scheme funding, the flood defence grant-in-aid, but it leaves heritage assets behind. Only residents and businesses currently qualify, which is leaving Eastbourne’s historic bandstand at risk of severe flooding. Will the Minister meet me and colleagues across the Department for Culture, Media and Sport and the Department for Environment, Food and Rural Affairs to review the loophole that leaves our bandstand behind?
I recognise the problem. The decision was to use the budget available to protect people’s homes and that has left other buildings at comparable risk. The relevant DEFRA Minister is working with DCMS on this issue. I will ensure that a conversation can take place.
On the infected blood compensation scheme in Northern Ireland, as of 21 February, 149 people had started the process, with 38 offers made totalling some £48 million. What assessment has been made of the time taken from when an application is made to when a payment actually arrives through the door?
Mr Andrew Snowden (Fylde) (Con)
The Minister was earlier asked about the ever-growing size of the civil service and the Cabinet Office under this Government and whether we would see those numbers coming down, not going up, next year. Instead of answering the question about the future, they talked about the past. Let me ask the question again, but from a different angle: when are this Government going to take ownership of the fact that they are in government now, and these are their problems that they need to resolve?
I am very happy to take ownership of the fact that we are in government, and very happy to confirm that the Conservatives are in opposition.
(2 years, 7 months ago)
Commons ChamberThe story overnight came from written submissions to my Committee’s inquiry on the future of battery manufacturing in the UK. Stellantis will be here in Parliament next Tuesday to give further evidence. The Minister will know two things: that she and her departmental officials are in ongoing negotiations with other car manufacturers in the UK beyond Stellantis, and that all the car companies are raising exactly the same issues and are asking for a step up in activity from the Government and an end-to-end industrial strategy to show that the UK is serious about the future of UK production of electric vehicles. Will the Minister confirm for the record that those assertions—that the Department is in negotiations right now with other car manufacturing companies and that they are raising exactly the same issues as Stellantis—are indeed correct?
I am grateful to the Chair of the Select Committee for being here. I was once on his Committee. Overnight, I went through the transcript and some of the submissions to that inquiry, and I noticed the submission from Nissan. I know that nobody wants to pick out all the positive things that were said, but there was a great point on page 4:
“The UK has strong promise as an EV battery production location due to strong demand, a skilled workforce, and attractive manufacturing sites.”
We somehow seem to be forgetting all the positive things that are said in submissions by the automotive sector.
We are working with those in the sector, as I have said. I meet them regularly and was with them just this week to deal with a number of challenges, whether to do with the Inflation Reduction Act or gigafactories. I can, of course, confirm that we are working with industry to do everything we can to ensure that there is greater commitment to gigafactories here in the UK.
(2 years, 7 months ago)
Commons ChamberI beg to move,
That this House has considered international trade and geopolitics.
I thank right hon. and hon. Members from across the House, and the Backbench Business Committee for granting the debate today. I declare my interests as set out in the Register of Members’ Financial Interests.
I applied for this debate because I am concerned about Britain’s standing in a world that is changing more quickly than we appear to be responding. From trade and industrial policy to innovation and skills, we have just sticking-plaster policies and no long-term economic plan. There is no strategy for UK plc that shows the path to prosperity, and I hope this debate may trigger some answers from the Government on their plan to drive economic growth within the UK and through exports abroad.
The era of increasing globalisation that we have come to know over the past decades is coming to an end. We are now in an era of economic retrenchment, higher levels of state subsidy and new forms of partnership between the public and business, but how is the UK responding? Ministers are merely saying to competitor countries, “This is not how you’re supposed to play the game,” but they are not listening, and we are losing. There are several factors underpinning these changes: geopolitical competition between China and the United States; war in Europe and security tensions in Asia; the need for democratic nations to show their people that our system of government can deliver good jobs, good pay and prosperity; the net zero transition; and the technological arms race in both its military and civilian contexts.
Based on current data, our direction of travel as a country is not a good one. Only this morning, the Government announced that the UK fell from being the fifth largest exporter of goods and services in the world in 2020, to seventh in 2021. Our trade deficit has ballooned from £2.3 billion to £23.5 billion, meaning that we are exporting fewer goods and services, while being increasingly dependent on other countries for our own supplies. According to the International Monetary Fund only last week, the UK is set to have one of the worst economic growth projections of the seven most advanced economies. Even Russia, to our shame, is projected to experience better economic growth than we are.
Our drop in exports to the European Union, coupled with the Government’s deeply short-sighted decision to agree a trade deal that blocks the sale of most UK-based services to the EU, while allowing the EU to sell services to us, has been a structural blow to the UK economy. In that context, our high levels of national debt, which have increased year on year since the Conservatives came to power in 2010, have put us in a fiscally precarious position. The Government should be ashamed of their record on UK national debt. We all remember David Cameron and George Osborne telling us that the Conservatives would fix the roof while the sun was shining. But what do we have now, 13 years after those promises to the country? A national debt that is projected to be larger than the entire size of the UK economy. A national debt that has increased year on year—yes, in response to covid and the energy crisis, but it was also increasing year on year before those crises.
It is a great pleasure to be part of this debate and to listen to the hon. Gentleman, and I hope he will not mind me picking him up on this point. He kindly acknowledged that the sizeable increase in UK debt is due to the response to covid, and I do not think he has concerns about the major schemes that comprised that. He also talks about the increase in debt that occurred in the intervening years. Will he accept that for each of those intervening years, the Labour party was calling for more expenditure and more debt?
The hon. Gentleman and I, perhaps surprisingly, share something in common, in that we would like to get the national debt under control. He will recognise that his party was in government for each of those years from 2010 when debt increased, year after year. The Opposition can come forward with policy proposals, but he must take some responsibility for the fact that the Conservative party was in government, taking decisions that resulted in a significant amount of national debt before covid and the energy crisis, due to the mishandling of Brexit, the inadequate trade deal with the EU and to the failure of austerity economics, which cut our public services back to the bone without adequate investment to create opportunities for economic growth in the future.
One might have assumed that in that context, the latest form of Conservative Government would wish to do everything they can to underpin, support and incentivise growth in the UK economy. Their most whizzy recent announcement has been the UK’s entry to the comprehensive and progressive agreement for trans-Pacific partnership for trade in Asia—a trade arrangement that is estimated to grow the national wealth by only 0.08%. It is a trade arrangement with 11 countries, nine of which we already have a trade deal with, and one that will pose due political challenges to the UK as China seeks to join it too.
My hon. Friend is making an extremely powerful case. Does he agree that geography still matters when it comes to trade, and if we as a country choose to make our trading arrangements with our biggest trading partner, which is still the European Union, more difficult, more costly and more bureaucratic, that is bound to have an adverse effect on the British economy?
I think everybody recognises that that is completely right, and my right hon. Friend recognises that with both the European Union and the United States, the bulk of our trade exists in this bit of the planet in which we find ourselves. Trade with Asia is welcome, but it will not be able to deliver larger economic opportunities for the UK than trading with our closest partners. Our arrangement with the CPTPP could cause conflicts in future trading negotiations with the European Union because of issues such as embedded carbon in the case of imported goods. Although we might want to do more trade with the European Union in line with our net zero targets, that might cause difficulty with imports from parts of Asia.
Margaret Ferrier (Rutherglen and Hamilton West) (Ind)
China’s growing assertiveness on the international stage is rightly cause for concern, and the CPTPP is an example of where the Government need to be cautious. If China is successful in joining, it could block Taiwan’s application in the face of growing tensions between the two. Does the hon. Gentleman believe that the UK Government should formally acknowledge Taiwan’s sovereignty?
I thank the hon. Lady for giving that suggestion to those on the Treasury Bench, and perhaps the Minister can answer when she responds to the debate.
I have two examples that are relevant to intervention of the hon. Member for Rutherglen and Hamilton West (Margaret Ferrier), but I will give way one more time, for old times’ sake.
It’s not that old-time! As the hon. Gentleman will realise, the Benches are not replete with Members for his debate, so I hope he will continue to be generous.
The hon. Gentleman has put his finger on an important issue, and this could be an informative debate on both sides. He has just mentioned one potential conflict between this country’s trade engagements and those of others, regarding our engagement with the European Union and with CPTPP, and different paces of change when dealing with net zero. As Chair of the Business, Energy and Industrial Strategy Committee, will he give the House a little more detail on his thoughts about what this country’s pace should be, and in particular his views on the carbon border tax?
I will do so briefly so that I do not test the patience of the Chair too much, given the number of pages I have left to read before the end of my speech. My initial observations are that it is in the UK’s interest to be a global leader on the net zero transition, both because that is the right thing to do and because it is a significant industrial opportunity, and that we should be partnering with the European Union to do so through our trade deal. In my view—I have not taken evidence on this; it is just my view—that would generate a larger rate of return for the British economy and British people than some of the other opportunities that have been presented.
Does my hon. Friend share my concern that in pursuance of net zero and the decarbonisation agenda, the automotive industry, for example, faces significant challenges in ensuring not only that we have a self-contained supply chain, but that we can engage with the European Union on our doorstep given restrictions on rules of origin? Will that present a difficulty, and is there an opportunity with the review of the trade and co-operation agreement to address that issue once and for all?
My hon. Friend is exactly right, and electric vehicles are a prime example. He and I were in Sweden last week on a Select Committee visit to look at how its electric vehicle battery manufacturing looks in comparison with the UK. If we are to continue to export cars to the European Union, we will have to hit the so-called rules of origin requirements where the components come from local or regional sources. Eventually they will have carbon embedded within them, in order to meet carbon border adjustment mechanisms and net zero targets. It is therefore crucial that the UK Government work with the private sector successfully to deliver that industrial policy outcome, or I fear we will see the near total decline of car manufacturing in the UK. While it is not for me as Chair of the Business, Energy and Industrial Strategy Committee to prejudge the conclusion of its inquiry into this issue, the contrast between what we saw in Europe last week, and what is happening in the UK, was stark.
May I cast the hon. Gentleman’s mind back to his comments about the CPTPP? The Northern Ireland constituency that I represent has a large farming and agricultural manufacturing sector, and we export right across the world. Businesses in my constituency tell me that they are looking forward to opportunities that will potentially arrive from the far east. Does the hon. Gentleman recognise that farming in Northern Ireland has the potential to grow more, and that part of that growth will be in the far east through the CPTPP? If that grows, there will be extra jobs, extra opportunity, and real growth in my constituency and across Northern Ireland.
I have to take the hon. Gentleman’s suggestion at his word as he knows much more about his constituency and farming than I do. If there are export opportunities that is great, but the question is whether that will deliver the wholesale economic growth that we need across the whole UK economy. It will be an important piece of the puzzle, but my proposition is that there is a much broader area where there are problems, and where Government policy is lacking.
In Sweden last week, we learnt about the sheer complexity of delivering a so-called gigafactory for electric vehicle battery manufacturing. We held in our hands, physically, fossil fuel-free iron made using hydrogen, which was being turned into low-carbon steel. I finally saw, after years, a carbon capture facility working, plugged in and capturing carbon in real life. Here in the UK, we just have ministerial statements setting out our intention to be world leading, without anything real or tangible to show for it. The British people will soon realise, if they have not already, that at the end of this yellow brick road set out by the Government there are just Conservative Ministers blowing smoke. The tragedy is that this is not just a dream: it is 13 years of Conservative economic mismanagement that will take years to clean up.
This sorry story is not just about what is happening in the European Union; it is about what is happening in the United States, too. During our Committee visits last year, it quickly became clear that the US is doing what Europe is doing, but on steroids. The Inflation Reduction Act, which is really a green new deal for the United States, sets long-term, multi-decade, easy-to-access tax incentives, grants, loans and market-setting standards to not only drive the net zero agenda but reinvest in the industrial capacity of the United States. This $500 billion multi-decade initiative is acting like a magnet, pulling investment, jobs and businesses into the American economy. Access to those tax incentives, grants and state-level support is predicated on agreements to train and employ Americans in areas that have been crying out for investment for years. In some circumstances, it is even predicated on business owners investing in childcare to help optimise the economic activity of the American labour market, including women.
Was my hon. Friend not struck by the stark report on Sky News, I think from Ed Conway, from AMTE Power in Thurso, one of the British manufacturers of car batteries? It was indeed attracted by the Inflation Reduction Act, so much so that we risk that factory—a gigafactory we do have—being relocated to the United States. Should that not be sending a signal warning to the Government that time is not on our side?
Once again, my hon. Friend is absolutely right. That is why the European Union has responded to what is happening in America, but what do we have here in the United Kingdom? I tried to be generous to the Government in a collegiate fashion, but the only thing I could find that allowed me to give the Government credit was the recent establishment of the Office for Investment, whose job it is to secure inward investment to the UK. But it has no budget.
As I understand it, when two American businesses looked at the UK as an investment destination, they did not know who to contact. Was it the Department for International Trade, the Department for Business, the Department for Transport, the Treasury, the regional mayor or the local council? The Germans, meanwhile, put together an inward investment package with significant incentives and the Americans presented a map with different options in different states, topped up with significant federal incentives. In the UK, we have an Office for Investment whose job it is to go around Whitehall, cap in hand, trying to put together an offer within existing budgets. The tragedy is that the reason those companies were looking at the UK in the first place was that we have great natural resources: huge potential for low-carbon fuel energy supplies, great industrial clusters, world-leading research and development, and great pools of highly skilled labour. But we just did not compete and we lost out on both investments.
Let me take another example, which we have already talked about: the semiconductor industry. The United States is securing multibillion dollar inward investments, as too are the Europeans. As my Committee concluded in its recent report, while we will never have end-to-end supply chains in the UK, we should be collaborating with our American and European allies to agree that the UK invests in the parts of the supply chain where we excel: chip design and advanced compound semi- conductors. Britain can play a crucial exporting role within a multinational supply chain. So when the Government take decisions to decline or unwind Chinese-linked investments, such as Newport Wafer Fab, they must follow through with finding new investment and new owners. Instead, we have a semiconductor strategy that is now even more delayed than it was already because, as it was reported, Ministers cannot decide who is going to announce it. Meanwhile, other countries are racing ahead of us.
It seems to me that we have Ministers stuck in the headlights of a changing world, convinced that the best thing to do is for the state to get out of the way and let the free market fix our problems, praying that someone, somewhere might find the sunlit uplands of post-Brexit Britain that Conservative Prime Minsters promised to deliver—while our competitors race ahead of us. The question, therefore, is what should we do about it? Beyond the obvious points of having a proper industrial policy, ideally a stable Government, a stable economy and a stable policy framework; beyond the obvious point that we continue to fail to highlight the importance and value of the service economy to our exports—we are the largest exporter of services in the world after the United States—and beyond the obvious point that we must improve our trade deal with the EU, what can we do that is new, global and in Britain’s interests?
We should be leading the debate about a new model of multilateral co-operation between democracies. We clearly already collaborate on defence matters, but what we define as critical supply chains or as critical national infrastructure, what we think resilient supply chains should look like to create economic security for our countries, and how we collaborate as allies and partners to show that democracies will continue to prevail over authoritarian regimes—those issues warrant a new partnership, a new model of multilateral working. It is in Britain’s interest to lead that debate and to play a central role in it.
Some will understandably say that there is a risk of decoupling the existing post-war institutional frameworks. My response is that this is already happening and that Britain can do little to stop it. That does not mean walking away from the UN, the World Trade Organisation or the G7—of course not. And it certainly does not mean Britain should play fast and loose in breach of agreed global rules. But it does mean that we must respond to lead and to influence what happens next.
If this Government had a real mission-led approach to the UK economy, we would see co-ordinated strategic action from No. 10, the Treasury, the Foreign Office, the Department for Business and Trade, the Department for Science, Innovation and Technology, and others. But we do not. We do not see that because the Prime Minister does not have an answer. He cannot tell us what our path to prosperity is, what he thinks our unique selling points as a country are, or how Britain will maintain its standing as one of the largest, most advanced economies on the planet.
I have had the good fortune, over the past few years, of being able to represent our Parliament in many countries. From Brussels to Washington, Sydney to Tokyo and elsewhere, I keep being asked, “Are you guys okay? What’s happening to the UK?” It is embarrassing and it must stop.
It is a factual statement. The hon. Member is chuntering from a sedentary position, as I think we say in this House, but I can assure him and the House that on many occasions that is the exact conversation people have had with me.
I hope that the Minister, when she responds, will be able to inform the House, on behalf of the Prime Minister, how this latest round of Conservative Ministers are going to clear up the mess of all the former ones over the past 13 years. The Minister and I know that the opportunities for the UK are there to be taken; that the British people have within them the drive, energy and potential; that our islands and our seas give us the potential not just to lead the net zero transition at home, but to export it abroad too; and that our greatest minds, entrepreneurs and universities mean we can ride the wave of the technological revolution in the interests of the British economy and the British people. We can achieve all those things, but only if Britain has a Government with the leadership, the ideas and the energy to start delivering. I look forward to the Minister’s response.
It is a great pleasure to have listened to the contributions so far, not least the contribution just made by the hon. Member for Liverpool, Walton (Dan Carden). I echo his words about the opportunity to strengthen connections, particularly for our young people, between our country and countries in Latin and South America. The area is often overlooked by Government and it is not high on the list for teachers or in what is learned in schools. His calls on the issue are very welcome. On Monday, at the University of Cambridge, I had the opportunity to talk to a group of Argentinian politicians. From their country’s perspective, I know that is something they would welcome as well.
Madam Deputy Speaker, here is my point: it is an afternoon, we have plenty of time, it is an incredibly interesting and broad debate, and it will not have escaped your attention that the Government Benches are not crowded with participants. Therefore, I beg the indulgence of Opposition Members to make a number of points on a series of areas. [Interruption.] The Minister is asking that they be quality contributions, so I shall therefore make my speech even longer.
I will start by addressing some of the points made by the Chair of the Business, Energy and Industrial Strategy Committee, the hon. Member for Bristol North West (Darren Jones), who I think is one of the most talented Members of this Parliament. He and I do have some strong disagreements, sometimes on principle and sometimes on practice. Let me start with two words that encompass the fundamental disagreement we have: industrial strategy.
To the Chair of the Select Committee, industrial strategy is the elixir that somehow unlocks the growth in our economy that proves elusive to all others. Not only that, it is industrial strategy as conceived by the Labour party that somehow has the unique ability to generate growth that perhaps could not be accomplished in other ways. I have always found that intellectual position interesting. When I went to business school and we were given a chance to give three words to describe ourselves to other students, I decided to call myself “arrogant”, because actually at that age—I know it is hard to believe now—I was quite arrogant. But I would never have the arrogance to think that my unique perception of an industrial strategy was the right way to galvanise growth in this country. On that issue, the Chair of the Select Committee and I differ. I would like to hear what he has to say.
The hon. Gentleman is generous in giving way, but as he has put words into my mouth on the record, I ought to correct him, if I may. From our Select Committee’s work on industrial policy and from my comments on that work, it should be clear that I am not somebody who believes that the state is where wealth is created or that the state is in the driving seat of a growing economy. However, when the private sector, which creates wealth, is driving down the road at speed and trying to win the race for workers, customers and shareholders, I recognise that somebody needs to build the public infrastructure for it to succeed if the road runs out.
That opportunity for the state to play an important role in partnership with business is what I refer to as industrial policy. Might I say that it is why so many businesses are talking to the Labour party right now? They are asking for such a partnership with the Government, as opposed to having a Government who stand out of the way and hope the free market will solve all the problems.
The hon. Gentleman reinforces my point. He is suggesting that if a company chooses to use its shareholders’ money to drive down a road that runs out, somehow taxpayers should pay for the extension of the road. The whole point of capitalist markets is that it is a business’s responsibility if it makes incorrect allocations of capital and its shareholders lose money. It is the job of business and business leadership to have the insight to understand how best to create value for shareholders in the long term.
Businesses are now coming to smart Labour Members—who are desperate to show that after years of hating business the Labour party now thinks prawn cocktails are a nice idea—and saying, “Can you spare us a few bob, mate? We’d like to support your party and we’ve got this really sexy thing we want to do, but frankly we don’t want to use our own capital because we know that the Labour party in government will be suckers enough to use taxpayers’ money to pay for it.”
The hon. Lady is right that businesses like certainty—that is absolutely true. Setting a direction, inasmuch as it creates certainty, is useful; more than that, it is a strong part of the foundations. If we go on to talk about climate change in this debate, it may be that questions about national and international strategies and about what our response should be to issues among British businesses, businesses in other countries and multinationals will drive us apart again.
May I invite the hon. Gentleman to reflect, for the benefit of the House, on his recent involvement in the Conservative report on the reform of economic regulators? I was afforded the courtesy of being shown the embargoed report, but I am not sure whether the embargo has now been lifted and I can talk about the report directly.
Oh, I can. Very good. The report recognises—I invite the hon. Gentleman to confirm or contest this point—that industrial policy is not just about money, but about policy direction, about regulation by economic regulators and about creating the conditions for business to prosper, for entrepreneurs to create businesses and for innovators to innovate. Industrial policy, as I refer to it, is not about somebody in the Treasury writing a cheque for businesses that should get their money from elsewhere, as the hon. Gentleman suggests; it is about the broader competitive market that needs to be created. Of course the Government and Parliament have a role in creating optimal circumstances for businesses to succeed. Does the hon. Gentleman recognise that?
I do. Again, the hon. Gentleman is showing that there are a number of areas in which we can find agreement on the details.
Let me focus on the point about regulatory policy, because it is an important one. A group of Conservative MPs have put together a report calling on the Government to look at how we deal with the stock of regulation, the process of making regulation and my particular area of interest, the accountability of regulators for performance. As Chair of the Select Committee, the hon. Gentleman will be well aware of our interactions with our regulators. Effective regulation, by which I mean regulation that is regularly, systematically and rationally appraised, plays a role in the competitive advantage of the United Kingdom. It is an area that we have locked away, saying, “It’s not nationalisation, it’s not the free market—it’ll do okay.” Those days need to come to an end, because too much of our economic output happens in sectors that are subject to regulators whose performance directly affects the ability of our country to compete.
The Chair of the Select Committee nods. It is nice to have an area of agreement.
Let me move on to the second area about which the hon. Gentleman spoke: the Inflation Reduction Act and the associated EU measures. As he well knows, that Act represents a $370 billion commitment of US federal funds, or their equivalent in tax credits. It followed the Infrastructure Investment and Jobs Act of 2021, which meant $1 trillion of investment, not only in infrastructure but in green energy. By purchasing power parity, the US economy is approximately six times the size of the UK’s. An equivalent response, which is what the hon. Gentleman says we need, would essentially require writing a cheque for £40 billion, £50 billion or £60 billion. If industrial strategy is not about expenditure, what are we supposed to be doing to compete, other than putting in that amount of money? There seems to be a part missing.
The hon. Gentleman also spoke about inward investment and said that we should be sharpening up our act. He is absolutely right. In countries such as Germany, which he mentioned, the package on offer to those who are interested in investing is not just a financial package, but a coherent one. When someone looks into making an inward investment, there are people to sort out all the Government intricacies for them at a single point on day one. That is how the UK did it when Margaret Thatcher was leading efforts with Lord Young, but over the intervening years we have made things a little too complicated and we have not found our way. I would be interested to hear the Minister address that point; it may not be directly in her remit, but it would be interesting for all hon. Members present to know the Government’s view. What are the Government doing to make sure people know that the UK can take a foreign company from thinking it wants to invest in this country to actually getting going and investing in this country, whether that involves, say, bricks and mortar or servers? What can we do to make that easier?
I know this sounds as though I am picking the hon. Gentleman’s speech apart. I am not picking it apart but asking questions about it, and I trust he is happy with that. He talked about economic security and collaboration. I think the short-term version of that is called friendshoring, which essentially means saying, “Let us conduct a geopolitical review of important strategic supply chains, and then let us be smart and make sure we are doing business with countries that are our allies.” That is a massive change, because there is no clarity about what the extent of friendshoring areas should be. Does this apply only to strategic industries determined by the United Kingdom, or is it imposed on the United Kingdom because other friends think we should be doing business with someone else? Are we prepared as a country to outsource the way in which British companies do business to the Government of the United States?
Obviously not with Russia. We have already imposed substantial trade sanctions on Russia, and I think there is consensus in the House about what our response should be when one country invades another. However, to conflate Russia with China, which has not, as far as I know, invaded another country, is to move into a different area. My point is philosophical: the United Kingdom’s history of success has been as an open trading nation, and the current push, in this country and others, for us to engage in friendshoring strikes me as a significant change from the way in which, historically, we have created wealth.
The point I made in my opening remarks was that we should recognise, with some humility, that Britain can have only so much influence on these global trends. The hon. Gentleman is inviting us to conclude that were we to do more deals with our friends and allies, as I have suggested, those arrangements would be dictated by other countries; I think he was alluding to the United States of America. My response to that is that Britain should therefore lead the debate, and be involved in how this is developing across the world. If we just sit back and wait to see what happens, we will end up having no influence over the way these things are being designed, which, by definition, will be dictated by others who are leading the global debate. I am suggesting that we, as a smaller country, have global clout, and should be convening and leading that debate.
That is a brilliant point well made, and characteristic of the hon. Gentleman’s understanding and grasp of these issues. He has put his finger on it. I, for my part, am merely raising questions and concerns about the perils of doing something that others may see as somehow buttressing our national security and doing what is right by us. This is not a road we can go down without trade-offs, and there will be some significant trade-offs if we take that road. However, I think the suggestion that we should be an active participant while those discussions are going on is very sensible.
Let me return to the question of money, and the current issues involving the so-called Inflation Reduction Act and the EU. A significant proportion of the funds spent by other countries are being spent on what I would term competitive discovery, which means looking at possible solutions when we do not yet have the solution to a problem. I would place that at the higher end of the risk investment spectrum, and would therefore approach it with caution. It is like dotcom for the green era—not in all sectors, and not all the money is being used for that purpose, but a considerable amount of what we need to do if we are to achieve net zero will require money to be spent on the discovery of solutions.
I am leery of the idea that British taxpayers’ money should be stacked up in competition with taxpayers’ money from EU member states and from the United States. Let me use that dotcom analogy again. When there is a big rush of substantial amounts of funds into discovery on a global scale, yes, there are winners, but an enormous amount of capital is wasted on losers. We have heard, in other debates, Members pushing us to do what President Biden is doing, or saying that we should be doing the same as the EU. Politicians need to remember that that means taking taxpayers’ money which could be spent on education or healthcare, and putting it in the casino of winners and losers in the green tech revolution. We need to be very cautious about spending money in that way.
I thank Members for their interventions, contributions and—dare I say—compliments, for which I was very grateful. I think we all agree that the world has changed. The question is: what next for Britain? From empire, to Europe, to what? A new chapter in our long history. Clearly, there is disagreement on both sides of the House about the state of the UK economy, but the Labour party knows that the data shows 13 years of economic decline, and that that must change. That change will come, we hope, with a new Labour Government.
Question put and agreed to.
Resolved,
That this House has considered international trade and geopolitics.
(2 years, 8 months ago)
Commons ChamberI rise today to give a statement on behalf of the Business, Energy and Industrial Strategy Committee in respect of our memorandum of understanding with the Government on scrutiny of the use of powers contained in the National Security and Investment Act 2021. I am grateful to the Backbench Business Committee for giving me the time to do so.
As the House knows, the National Security and Investment Act established a new statutory regime for Government scrutiny of, and intervention in, investments for the purposes of protecting national security. The Act applies to a wide range of sectors, which themselves are broadly defined, and—unlike in other countries—covers all transactions, not just those involving foreign investment. The investment security unit was then established within the Department for Business, Energy and Industrial Strategy to operationalise the Act. At that stage, the Secretary of State for Business, Energy and Industrial Strategy was the decision maker.
When the Bill was going through the House, the Government confirmed their preference that scrutiny of the use of these powers should be done by my Committee. There was a debate in this House and in the other place about whether a departmental Select Committee had sufficient processes, people and protections in place to scrutinise secret information, and right hon. Members from the Intelligence and Security Committee understandably argued that their Committee was best placed to do that work. However, the Government were not minded to accept amendments for a statutory regime of scrutiny in the Bill, nor to change their position on which Committee should have oversight of the regime. As such, Ministers committed to entering into a memorandum of understanding with my Committee to set out how information would be made available to allow us to do our work.
While negotiating that memorandum, my Committee established a new National Security and Investment Sub-Committee and appointed special advisers. We are also grateful to the House for providing us with national security subject specialist staff with relevant levels of security clearance. In addition, we undertook a short study visit to the United States to understand how congressional oversight of that country’s equivalent regime is conducted.
I am pleased to inform the House that the memorandum of understanding between the Government and my Committee has now been agreed, and that we have published it today in our report. I will not test the patience of the House by reading out the whole memorandum, but I will just make two points. First, it has been agreed that scrutiny will largely be done in private and, in so far as it relates to individual transactions, will be done retrospectively following any appeal or legal challenge. This was agreed to prevent actual or perceived political interference in quasi-judicial decision making, and means that we operate in line with our counterparts in the United States. Secondly, the bulk of our work will focus on the effect of the legislation on investment in the United Kingdom and the effectiveness of Government operations.
When the Committee decides that it wants to understand individual transactions in more detail, we will be able to request information from the Government via a private explanatory memorandum, which we will not publish. If the Committee wishes to see more sensitive information that is not contained in the explanatory memorandum, I as Chair of the Committee will be able to request access to such information, and will be briefed on equivalent to Privy Council terms or by notification under the Official Secrets Act. Lastly, while the recent machinery of Government changes have resulted in the investment security unit moving to the Cabinet Office and the decision maker now being the Chancellor of the Duchy of Lancaster, the Government have confirmed that they still intend for scrutiny of the Act to be undertaken by my Committee and, soon, its successor Committee on the basis set out in today’s report and the letter from the Minister received by other relevant Committees.
I welcome this report, especially paragraph 11. We have always welcomed scrutiny of our decisions. As the hon. Member rightfully pointed out, the investment security unit has left the Department for Business, Innovation and Skills, but I am still responsible and we now sit in the Cabinet Office. Obviously, we want to support businesses to ensure that investment in the UK continues, while also protecting our national security.
I wondered whether the hon. Member could reflect on the fact that the NSI Act is a leading investment screening regime, and that we have good relationships with like-minded partners through which we share best practice and help other countries with similar regimes. Perhaps he could also comment on when I will be in front of him and his Select Committee, because we do not shy away from scrutiny. Finally, perhaps he would like to indulge the House and thank all of the investment security unit staff who worked with us on the unit and on securing this MOU.
I thank the Minister for her question. Of course, for a long time, she was a member of my Committee. She pushed me quite hard to ensure that we got very effective scrutiny of this legislation, so I look forward to working with her collaboratively on the exchange of information as it relates to our interests as a Select Committee.
The Minister invites me to thank her officials, as well as my Clerks on the Select Committee, and I should do so. It took, I think, nearly 13 months to get to this point, sometimes with some frustration, but we got there. However, much of the work has been done and much of the detail has been agreed at length by our officials and Clerks, and we are very grateful to them for their contributions.
As for when the Minister will be summoned to my Select Committee, it is unusual that people are keen to come and be cross-examined by me and my colleagues on the Committee, but we look forward to welcoming her in due course.
Can I thank my hon. Friend for his statement, but also say how disappointed I am with it—not from his point of view, but from the Government’s? The Intelligence and Security Committee, which I sit on, is the only Committee that can look at the highest classification of information. My hon. Friend even admits that, under this process, he might be able to be given some information, but not all. It would be down to the Secretary of State. The memorandum says that the ISU is going to the Cabinet Office. Has he had an indication or clarification of which bit of the Cabinet Office? If it is the National Security Secretariat, that is already under the remit of the Intelligence and Security Committee.
I am in the unusual circumstance, as a member of the Opposition, of having to put the Government line to my right hon. Friend. I merely recognise, as he will know from our extensive conversations, that it has always been the case, in line with the Osmotherly rules for Select Committees, that we do not have a statutory power to summon information, as he does on the Intelligence and Security Committee, but that there is a presumption that information will be shared with us. He will know that, if that information is not exchanged in a timely and ready fashion for us to do our work, the Committee will escalate those issues via the Committee, the usual channels or on the Floor of the House. As to my right hon. Friend’s question on where the unit resides, it resides in the Cabinet Office. I assume it is within the National Security Secretariat. I think he is therefore suggesting that that means the ISC has oversight. I know full well that he and his colleagues will make use of their powers to try to request information from the Government in their work.
I thank the hon. Gentleman for his statement and recognise that a huge amount of work has gone into it, including with the Government. I thank him for the engagement he has had with my right hon. Friend the Member for New Forest East (Sir Julian Lewis), the Chairman of the ISC, of which I, too, am a member. I know that my right hon. Friend would be here if he could be.
If I may, I will put to the hon. Gentleman what the problem with the arrangement might be. He has said already that arrangements are to be made for the viewing of material that would normally be at a higher classification than members of his Committee would be able to see, but those arrangements as set out in the memorandum are clearly described as “exceptional”. Is it not the case that the sub-committee of his Committee that he will set up to deal with this material is likely to deal with that sort of classified material on a routine basis? Is there not an advantage in having staff and members of a committee who are used to dealing with this type of material? Through no fault of their own, neither his Committee nor its staff will be used to that.
There is an interesting question there, to which none of us knows the answer: how routine will it be for us to have to look at either commercially sensitive or national security-sensitive information about individual transactions? From our study visit to the United States, it seemed that most of the transactions were operationalised, and had not become political or been escalated to a committee level, because the issues were seen to be sensible, small or below de minimis thresholds.
There will be examples where there is more political interest in a particular transaction. In the past year, for example, where the 2021 Act has been operational, the vast majority of the notifications that my Committee has received have not warranted our having to look at the national security information. For some cases, such as Newport Wafer Fab, the industrial implications of that decision will warrant our looking at that information in more detail. Under this memorandum of understanding, we will request that information when we are permitted to do so—after the period of judicial review and appeal has closed—so that we may understand whether the Act is being used in the way it is supposed to be used, without deterring investment in the interests of workers and business in this country.
The right hon. and learned Gentleman refers to staff. As I said in my statement, the House has kindly provided the Committee with additional staff, who are national security specialists and have a range of security clearances. In the MOU, there are procedures and processes for the handling, holding, storage and use of information, both between my Committee and my Clerks, but also where necessary within Government facilities.
Just to endorse the comments of my right hon. and learned Friend the Member for Kenilworth and Southam (Sir Jeremy Wright), I know that the hon. Member for Bristol North West (Darren Jones) has behaved in an admirably collegiate manner throughout. On the issue of exceptional access to highly sensitive information, the MOU makes clear that members of the Committee may have sight of that information, but they will not be able to retain it or analyse it, and the Committee will not have staff who can keep that information, report back on it and advise the Committee’s members once they have been able to analyse it. That is in contrast to the ISC, is it not, which has all those things. Is that really appropriate? How does he feel he will navigate that paradox?
We have to give the MOU a whirl and see how it works. I understand the right hon. Member’s concerns. My only point is that I am not sure there will be lots of documents we will want to host in a safe special location for us to keep returning to. Our job broadly is to look at the implications for investment and for business in the UK. When something is escalated from a transactional basis to a political level, we need to understand why Ministers have made their decisions.
As much as I would like it to be the case, it is not for the Committee to be the Government, and it is not for us to make different decisions from Ministers. Ministers—the right hon. Member’s colleagues—are empowered to make the decisions they make. It is for my Committee merely to have oversight and scrutiny of how they have come to those decisions and to recommend improvements, should the Committee see fit to do so. While the right hon. Gentleman’s point is correct factually—the ISC has a whole range of assets and processes and people who are not available to my Committee—I am not sure in practice how much of that information would need to be processed in that way for us to do an effective job of scrutinising the use of the legislation.
I welcome the work that has been done to get the MOU agreed. I am sure the hon. Gentleman’s Committee will do important work in this space, but like my fellow members of the Intelligence and Security Committee, I think this is frankly an unsatisfactory situation. I hope the Government will listen to the points that have been made today. Will the Chair of the Select Committee be willing to report back to the House on how these processes are operating? For the reasons given, it seems impractical for his Committee to give the detailed scrutiny that is needed.
I hope the right hon. Member recognises that, albeit I have been in the House for the short period of six years, I am not a timid politician. If I am blocked or prevented from doing the work I have been asked to do by the House, I will make it clear that is the case. I am happy to come back to the House as and when appropriate to report on the scrutiny of the Committee. As the Bill was passing through the House, I and my Committee were, to be honest, fairly ambivalent about which Committees did the work and on what basis. We were open to other Committees and colleagues making their case, but ultimately the Government have made the decision, and we have responded to that and set up our processes in the best possible way. I reassure her that if they do not work well enough, I will certainly be back here to make that case.
I thank the Chair of the Select Committee for his statement.
(3 years, 11 months ago)
Commons ChamberThe COP President has not set out which countries are his priority for enhanced nationally determined contributions in the run-up to COP27; will he do so?
As the Chair of the Business, Energy and Industrial Strategy Committee knows, all countries have committed to come back to their 2030 emissions-reduction targets by 2022, if necessary. Of course, the G20 is responsible for 80% of global emissions and will have to lead the way.
(4 years, 1 month ago)
Commons Chamber
The Prime Minister
My right hon. Friend makes an excellent point. I think that that was one of the most important defining characteristics of this COP, and the role of business is now seen to be critical by partners around the world. The new country platforms that we are creating will only be possible with the help of the trillions of private sector investment.
Will the Prime Minister take this opportunity to show that Britain leads by her actions, not by her words, and reopen the UK-Australia trade deal, which notoriously relegated climate commitments to get the deal over the line?
The Prime Minister
Australia has made its first ever commitment to net zero, and if you want to look at UK leadership, Madam Deputy Speaker, ours was the first country—the first major economy—to commit itself to net zero. Now, 90% of the world is committed to it. It is pretty clear, even from the grudging, mealy-mouthed words we have heard from the Opposition, that the overwhelming impression, even on the Opposition Benches, is that COP26 in Glasgow was a considerable success.
(4 years, 1 month ago)
Commons ChamberReaffirmed by our 25-year environmental plan and our fisheries White Paper, the Government are committed to sustainable fishing and the principle of maximum sustainable yield. My hon. Friend will be pleased to know that we are also committed to helping industry to reduce the adverse impacts on the marine environment and to adapt to climate change.
Only 13 of the G20 nations have committed to net zero by law. Does the COP President expect all G20 nations to commit to net zero by law at COP26?
I would like every country to step forward with a net zero target. When we started, it was 30% of the world economy; it is now 80%. Of course, we also need those nationally determined contributions to come forward before COP.
(4 years, 4 months ago)
Commons ChamberFirst, I put it on record that I have had many emails and messages from my constituents, expressing their distress at the events in Afghanistan, not least in respect of women, girls and LGBT people, as well as their wish that Britain plays a full part in evacuating not just British citizens and Afghans who supported our work, but other Afghan refugees who trusted the promise by western nations to make the Taliban part of their past, not their future. Bristol is a city of sanctuary and we stand ready to assist.
Many urgent and worthy issues have been debated today, but I want to focus on just one point. I fear that events in Afghanistan could be the symbolic end of the period when the UK has been able to exert influence in securing a cohesive western approach in the world. The way in which the withdrawal from Afghanistan took place represented a United States primarily concerned about its own situation, failing to step up and play an important role in the world as a torchbearer of democracy, pursuant to its status as a democratic superpower. It represented a NATO that was hamstrung by the position of the United States, and European nations, including ours, incapable of changing course. Perhaps most important for our purposes in a post-Brexit world, where the UK-US special relationship is at the heart of our assumed projection of power and influence, I am left wondering what power and influence Britain alone actually has.
For the many champions of democracy around the world, including in Taiwan, events have already created a sense of unease about the willingness of the world’s democracies to support each other when our way of life is challenged and put at risk. The Taliban have been celebrating their victory over the militarily superior nations with China and Russia, which maintain their position in Afghanistan and form relationships with the Taliban—collaborative and celebratory relationships between authoritarian nations against the free and liberal democracies of the world.
My heart goes out to the Afghan people. As a Member of this House, I feel deeply sorry for the events that have unfolded. I, too, pay tribute to the many servicemen and women who have served. We all expect Ministers to put significant energy into our efforts in Afghanistan on evacuation, asylum, aid and international diplomacy. I also expect Ministers, not least our Prime Minister and Foreign Secretary, to wake up to Britain’s quickly declining influence in the world and the risk that that poses to our country. That can be turned around, but it will require renewed effort and statesmanslike leadership that befits Britain’s historical status in the world. I sincerely hope that the Government have it in them.