Industry and Exports (Financial Assistance) Bill

David Reed Excerpts

2nd reading
Monday 15th December 2025 Commons Chamber

[Chris Bryant]

I thank colleagues for everything that they have had to say. I am not sure whether it was Reagan or Bush, but one of them went to France and said that the trouble with the French economy was that there was no French word for “entrepreneur”. It was repeated by a Conservative Secretary of State for Wales, who went to Wales and said that there is no word in Welsh for “entrepreneur”—that was a bit ironic.

I will try to do something extraordinary, Madam Deputy Speaker, by answering the questions that have been put to the Government. [Hon. Members: “Hear, hear!”] I don’t think it will catch on. I will start with the questions put by the shadow Minister, the hon. Member for West Worcestershire (Dame Harriett Baldwin). Her first question was about whether I can guarantee that no commercial finance will ever be used where UKEF finance is involved. The strict answer to that is no. However, UKEF’s mission is

“to ensure that no viable UK export should fail for lack of finance or insurance from the private sector.”

My hon. Friend the Member for Leyton and Wanstead (Mr Bailey) made the key point about cohering power. That is precisely what UKEF is able to provide. Sometimes, particularly under export development guarantees, UKEF funding can help to extend capacity or terms—that is an important part of what it does. It is not that there will never, ever be commercial finance and UKEF funding, but obviously we are not trying to supplant commercial funding. We are also aware, of course, that financial services are one of the key things that we do around the world. We are trying to shift our FTAs towards dealing not just with goods but with services, because that is where some of the added value is for the UK.

Several hon. Members have asked about regional disparities. Those are one of the key things we have charged UKEF with, and I know that it is keen to address them. I have a long list in my briefing notes of different parts of the country in which UKEF funding has been supportive or where there have been grants, but I will not lay them all out now.

The shadow Minister asked about new markets. That is often precisely what we are looking for: new markets for individual exporters and new markets for the UK in general. One area in which we have set aside money was specifically in relation to Ukraine, where the reconstruction will be one of the most important things for UK businesses to be involved in over future years. It will be difficult to get the insurance necessary to be able to provide that simply on the open market, which is why UKEF funding is particularly important.

The shadow Minister said that we should not export to companies that could do us harm. She is absolutely right about the side-stepping of sanctions on Russia. We have frequent discussions about that, and UKEF is particularly keen on carrying out due diligence on it. It is why we must constantly revise how we implement our sanctions regime, to ensure that it is doing damage to the Russian Federation’s economic advances.

[David Reed (Exmouth and Exeter East) (Con)]

Will the Minister give way?

[Chris Bryant]

Yes, but I am not sure that the hon. Gentleman was here for the rest of the debate. [Interruption.] Oh, he was sitting on the Front Bench—I do apologise.

[David Reed]

I thank the Minister. Just on a point of clarification—I am sure that this will be hammered out in Committee—we have heard about the assistance that the Government have given over the past 15 months to UK Steel, Jaguar Land Rover and others, but it is important to talk about the significant cyber element. Jaguar Land Rover was hit by a big cyber-attack, and we saw a step change when the Government stepped in and essentially made British taxpayers the insurance company. Does the Minister see any risk in the Bill, and what message does it send to adversaries such as Russia, which he just mentioned?

[Chris Bryant]

On cyber, financing and JLR, I might have to correct myself in writing to the hon. Gentleman if I get what I say wrong, but as far as I am aware, I am not sure that JLR has drawn down any of the finances from UKEF that we made available. We thought it was important to ensure that the guarantee was there so that the company was able to proceed. That would be of assistance not only to JLR, but to the extended supply chain, much of which needed to deliver precisely on time, because of the way the automative industry now works, and they did not have large stocks of things that they were keeping against the day when they might be called up by JLR.

We certainly do not want to be the insurer of last resort for everybody who gets into a cyber-security problem. That is why the Government have a cyber-strategy, and we are keen to ensure that businesses take that part of their responsibility seriously. We have seen the dramatic effects that it can have on the UK economy when that goes wrong; this is a serious point. I have seen no evidence that what happened at JLR was specifically related to Russia, but we must maintain vigilance on all these matters.

The shadow Minister’s final question—I am not leaving any of them out—was about how we make sure that posts know about UKEF. We have heard already from two of our trade envoys that posts are extremely well aware of the existence of UKEF, and of how completely transformative that can be when a business is seeking to expand into a particular market. I would say that the problem is that sometimes not enough businesses in the UK are aware of UKEF, which is one of the things I have been talking through with UKEF senior management.

I know that my hon. Friend the Member for Chelsea and Fulham (Ben Coleman) has been doing a magnificent job, because I have seen video footage of him on the “News at 10” in Togo, speaking in French. We are glad that we have such a linguist in our team, and he is right to raise some of the issues in relation to the EU. We want frictionless trade. That is what we were promised, and we are going to try to achieve it as far as we possibly can. Sometimes that will mean that we align as much as possible with the European Union, rather than diverge for the sake of divergence. Of course it means that we need to get more mutual recognition agreements in place. There is a series of industries where I would like to achieve that, not least architecture.

The hon. Member for Maidenhead (Mr Reynolds) gave the traditional single transferable EU speech from the Liberal Democrats. I agree with large chunks of what he was saying, but not with his final premise. As I say, within the parameters of what we have, we want to deliver frictionless trade as much as possible. Everybody in my Department laughs at me, but I often refer to floristry. There are florists in every constituency in this land, and if it costs more to bring flowers in from Europe than it did in the past, that is a problem for lots of small family businesses up and down the land. That is why sorting out sanitary and phytosanitary measures over the next few months is an important priority for the Government. He asked whether the target of 1,000 SMEs is ours or that of the previous Government—it is our target as well. We want to be ambitious about that.

The hon. Gentleman asked about spending decisions and accountability. If only he knew somebody on the Business and Trade Committee to whom he could talk about questions of UKEF. Oh no, he’s on it—I’d completely forgotten, Madam Deputy Speaker! I am sure there are plenty of means for him, but I gently say to him that in my experience, the whole system of accountability of expenditure in the House is pretty shabby. It is not my job to write how we should change that in the future, but he might come up with some suggestions and put them to others.

My hon. Friend the Member for Middlesbrough South and East Cleveland (Luke Myer) said that I had not aged a day since I was last a Minister under Queen Victoria, but I think he inadvertently misled the House; I hope at some time that he will be able to correct the record. He is absolutely right about arbitrary figures. There are arbitrary figures, and previous Acts of Parliament did not allow us to amend them to update them sufficiently in line with inflation—we need this primary legislation to do that.

My hon. Friend is also right about the steel industry. I assure him that our steel strategy will come out in the new year. It will be very clear about how important we think the steel industry is to the UK, and about having a sovereign capacity in the UK for a variety of different forms of steel manufacture. As I told the House last Thursday, I was in Brussels last Wednesday to meet Commissioner Šefčovič to talk about the EU steel safeguards, and to make sure it is understood that we are not the problem for the EU and the EU is not the problem for us, so we ought to be able to come to some agreement in that space. We know that our steel safeguard runs out at the end of June. We need to make sure that we have adequate measures in place thereafter, and we will do so.

My hon. Friend the Member for Newton Aycliffe and Spennymoor (Alan Strickland) talked about the importance of exports, in particular for businesses in his own region. To give cite just one statistic, UKEF provided a £590 million loan for SeAH Wind UK, which is building an offshore wind factory in Teesside. It will create 750 jobs by 2027 and will assist the UK steel industry, so my hon. Friend is absolutely right and I agree with him.

My hon. Friend the Member for Leyton and Wanstead, who is another of our magnificent trade envoys, asked more questions than the shadow Minister—I am not sure whether he is auditioning for some other post. He is absolutely right about the importance of our critical minerals strategy. Our relationship with Africa will be essential to deliver on that; other countries are seeking to make inroads there, and we cannot leave that be. He asked how the updated UKEF strategy fitted with what we are doing today. Well, the new strategy simply cannot exist without the extension of the financial provisions that we are introducing through the Bill.

My hon. Friend also talked about the cohering power, which is very important. He said that I could read his views—I know can, because he gave me a letter only 10 days ago, which I have read and officials in the Department are reading as well. I am enormously grateful to our trade envoys, in particular those who provide clear reports when they come back from visits about the things that we have achieved. They are achieving those things as part of the UK team. In the new year, I want to vitalise the whole House so that all Members, who often know the businesses in their communities better than anybody else—certainly better than any Government Department—bring people to us who might be thinking about exporting in the future, so that we can strengthen that opportunity.

This Bill is about enabling Scottish indie acts like corto.alto and Young Fathers, and Wales’s the Bug Club, to tour the world. It is about funding low-carbon hydrogen production. It is about helping Superior Wellness to sell hot tubs and spas around the world. It is about enabling 3TOP Aviation to expand its sustainable aircraft services into new markets. It is about helping SRT Marine Systems to sell its maritime surveillance in Indonesia and Kuwait. It is about enabling UK businesses to get contracts to help build the new Dubai airport. It is about enabling BioNTech to open two new research and development hubs. It is about helping Kindeva in Loughborough and Clitheroe to develop new respiratory inhalers. It is about enabling a new multibillion-pound car battery factory, creating 4,000 jobs. It is about Scotch whisky and salmon, and Welsh whisky; aircraft engines and wings; life sciences and advanced manufacturing. It is about jobs and our prosperity, so I hope that all right hon. and hon. Members will support the Bill tonight.

Question put and agreed to.

Bill accordingly read a Second time.

Industry and Exports (Financial Assistance) Bill (Programme)

Motion made, and Question put forthwith (Standing Order No. 83A(7)),

That the following provisions shall apply to the Industry and Exports (Financial Assistance) Bill:

Committal

(1) The Bill shall be committed to a Committee of the whole House.

Proceedings in Committee, on Consideration and on Third Reading

(2) Proceedings in Committee shall (so far as not previously concluded) be brought to a conclusion two hours after their commencement.

(3) Any proceedings on Consideration and proceedings on Third Reading shall (so far as not previously concluded) be brought to a conclusion three hours after the commencement of proceedings in Committee of the whole House.

(4) Standing Order No. 83B (Programming committees) shall not apply to proceedings in Committee of the whole House, to any proceedings on Consideration or to proceedings on Third Reading.

Other proceedings

(5) Any other proceedings on the Bill may be programmed.—(Jake Richards.)

Question put and agreed to.

Industry and Exports (Financial Assistance) Bill (Money)

King’s recommendation signified.

Motion made, and Question put forthwith (Standing Order No. 52(1)(a)),

That, for the purposes of any Act resulting from the Industry and Exports (Financial Assistance) Bill, it is expedient to authorise the payment out of money provided by Parliament of any increase attributable to the Act in the sums payable under or by virtue of the Industrial Development Act 1982 or the Export and Investment Guarantees Act 1991 out of money so provided.—(Jake Richards.)

Question put and agreed to.