Oral Answers to Questions

Douglas Alexander Excerpts

Thursday 1st May 2025 Commons Chamber

[Graeme Downie (Dunfermline and Dollar) (Lab)]

3. What steps his Department is taking to help support trade with European countries.

[The Minister for Trade Policy and Economic Security (Mr Douglas Alexander)]

As we have just been discussing, increasing trade with European countries is and has been a focus of discussion between Ministers in the Department for Business and Trade and their EU counterparts. I recently met Ministers from Spain, France, Denmark, Poland and Germany, and work is under way on the first UK-EU summit, scheduled to take place on 19 May; trade and the economy will form one element of a broader agenda about our strategic partnership. Across wider Europe, we are negotiating an enhanced free trade agreement with Switzerland, which we hope will strengthen our trading relationship there.

[Graeme Downie]

The UK’s economic relationship with Sweden is among the most important of our economic relationships with our European partners, particularly with Sweden having recently joined NATO. As the Minister will know, Babcock is pursuing a partnership with Saab to build four Luleå-class corvettes for Sweden. That would involve significant work at Rosyth dockyard and secure thousands of jobs in my constituency. This would be a joint export product, bringing considerable further value to the UK. Given the significance of this deal to my constituency and shipbuilding in the UK, will the Minister confirm its importance to our relationship with Sweden, and do all that he can to support and champion this vital defence industrial partnership?

[Mr Alexander]

Having worked so closely with former Prime Minister Gordon Brown over a number of years, I am probably the last person in this Chamber who needs to be convinced of the economic significance of the Rosyth dockyard. As my hon. Friend knows, I have recently had meetings with Babcock’s executive team, both in London and abroad. Due to commercial sensitivities, I cannot discuss details of the deal to which he has referred. I am grateful for his recent letter to the Secretary of State on this matter; a response was issued yesterday. He can be fully assured that the Government value the defence relationship with Sweden and fully recognise the importance of defence industrial partnerships between the United Kingdom and Swedish companies. They contribute greatly to our defence and growth objectives.

[Chris Law (Dundee Central) (SNP)]

Food and drink is one of Scotland’s most successful industries, and it is worth £15 billion to the economy. Over the coming months, the UK Government face a choice in their trade talks with the EU and US: do we align our food and farming standards with those in the EU, or reduce our quality standards at the behest of the United States? Will the Secretary of State guarantee that Scotland’s food and drink industry will not be jeopardised through desperation to satisfy the demands of, and secure a deal with, Donald Trump?

[Mr Alexander]

At exactly this point tomorrow morning, I will be visiting a farm in East Lothian, so I can assure the hon. Gentleman that I am fully aware of the importance of food and agriculture to the Scottish economy and, more broadly, to the UK economy. I also respectfully refer him to the Labour manifesto at the last general election, which made very clear our commitment to maintaining important standards.

[Mr Speaker]

I call the shadow Minister.

[Dame Harriett Baldwin (West Worcestershire) (Con)]

The Product Regulation and Metrology Bill, which is about to start its Committee stage in the House, may sound a little dry, but it would give the Secretary of State unfettered power to sign up to dynamic alignment with the European Union at the 19th summit. Given that voters are going to the polls today, will the Minister take the opportunity at the Dispatch Box to rule out the UK becoming an EU rule-taker?

[Mr Alexander]

I am slightly worried that the question adds two and two and gets about 97. The Bill recognises that we have to find a way forward on standards with the European Union, but to try to overlay what is, as the shadow Minister says, a necessary and somewhat dry technical piece of legislation with the policy agenda that she alludes to is simply wrong.

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[James MacCleary (Lewes) (LD)]

8. What steps his Department is taking to help increase exports to the EU.

[The Minister for Trade Policy and Economic Security (Mr Douglas Alexander)]

Three of our five largest trading partners are in the European Union. Indeed, 46% of UK trade is with our friends, neighbours and partners in the EU. The Department for Business and Trade, along with other Departments across Government— I hope in a co-ordinated way—have been contributing to the resetting of our relationship with the EU, and is fully engaged ahead of the first UK-EU summit scheduled to take place on 19 May. Among the broad spectrum of policy areas, we aim to make progress on tackling barriers to trade and securing outcomes that will help more businesses across the UK export to our European neighbours.

[James MacCleary]

This is a moment for Britain to show that it is serious about forging a renewed and reinvigorated relationship with the EU, which is still our largest trading partner. If the forthcoming summit ends up as another in a long line of missed opportunities, there is a real danger that Brussels will just move on to other priorities. What concrete measures can businesses expect to come out of the summit to cut red tape and the barriers holding back British growth and prosperity?

[Mr Alexander]

I would be inclined to wait for the summit before declaiming it as a disaster—I think, in the trade, that is called prebuttal. However, the hon. Gentleman’s point about the seriousness of the summit is a fair one, and I recognise it. When I saw those images of the Prime Minister sitting with President Trump in the Oval Office, or indeed with President Macron or President von der Leyen of the European Commission, I felt a genuine sense of relief that we have a serious Prime Minister for these serious times. That serious Prime Minister is intent on, first, rebuilding personal relationships across Europe and, secondly, looking to identify the areas that are transparently win-win between ourselves and our friends, neighbours and partners in the European Union. I assure the hon. Gentleman that there is an ambitious agenda for the summit on the 19th.

[Mr Speaker]

I call the Liberal Democrat spokesperson.

[Clive Jones (Wokingham) (LD)]

The Government need to deliver measures that will cut red tape for businesses in Wokingham and across the country who want to sell their goods to our largest trading partner, the European Union. Since Brexit, over 2 billion pieces of paperwork have been added to UK exporters—enough paper to wrap around the world nearly 15 times. Does the Minister recognise the scale of that figure? How will he ensure that Conservative-imposed red tape for business with Europe is cut down?

[Mr Alexander]

We are consciously pursuing a trade agenda based on data, not on post-imperial delusion. Regrettably, the data is pretty devastating on the damage done by how Brexit was implemented by our predecessors. If one wants to look at academic research, the latest publications from Aston University indicate that a number of small and medium-sized businesses, about which we have heard a lot today from Opposition Members, were buried under red tape. It is not only those businesses that have been buried under red tape; we have seen an increase in the number of civil servants across the United Kingdom by more than 100,000 in recent years. That is partly why the Chancellor of the Duchy of Lancaster in the Cabinet Office is leading our work on rethinking the size and shape of the British state. The hon. Gentleman is absolutely right in recognising that we have a responsibility to try and clean up the mess. That is what we are doing.

[James Wild (North West Norfolk) (Con)]

9. What steps he is taking to help support high street businesses.

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[Olly Glover (Didcot and Wantage) (LD)]

T7. Enersys ABSL is a space battery manufacturer based at the Culham campus in my Oxfordshire constituency. The Minister will be aware that Culham has been designated as an AI growth zone by the Government. It applied for an export licence last August but got an outcome only last week, which meant the contract was nearly lost to a French competitor. What steps is the Minister taking to improve the process for granting export licences, so that companies are not subject to this kind of last-minute jeopardy?

[The Minister for Trade Policy and Economic Security (Mr Douglas Alexander)]

I am unfamiliar with the particular case but concerned by that description. We inherited the export licensing system, and we are reviewing it as part of our ongoing work looking at all aspects of the Government’s work. If the hon. Member writes to me, I will certainly take a personal interest in the matter and write back to him.

[Tony Vaughan (Folkestone and Hythe) (Lab)]

T4. Folkestone and Hythe has a long history as a thriving tourist destination, but in recent years, with Brexit and rising costs, things are getting harder for businesses in our coastal communities. What steps is the Department taking to support the growth of the tourism and hospitality industry in Kent?

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[Sir Desmond Swayne (New Forest West) (Con)]

Arrangements at the border are disadvantaging companies on both sides of the channel, so there are mutual advantages to be had in negotiations without feeling the need to make any major concessions, aren’t there?

[Mr Alexander]

I am not entirely convinced that the previous Government are a compass by which to navigate the next set of negotiations with the European Union. The right hon. Gentleman is entirely right that there is a whole series of unnecessary barriers to trade between ourselves and the European Union that were put in place as a direct consequence of the failure of the negotiations led by the previous Government. He is right to recognise that that is affecting directly a whole number of businesses on both sides of the channel. As the Secretary of State said, there is politics on both sides of the channel, but we are working very hard for British business in that context.

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[Sarah Olney (Richmond Park) (LD)]

Sheen Uncovered is a clothing business in my constituency that the Secretary of State is welcome to visit any time. It has been significantly affected by the need to pay import duty up front, thanks to the Conservatives’ terrible Brexit deal, and that duty ranges between 6% and 12% and greatly impacts its cash flow. What are the Government doing to support businesses such as Sheen Uncovered to reduce the challenge of import costs?

[Mr Alexander]

I assure the hon. Lady that we are looking at how we can improve that relationship, and she is right to recognise that a whole number of barriers were created as a consequence of choices made previously, which are causing significant challenges to businesses small, medium and large. As the Secretary of State made clear, we cannot give a running commentary on discussions that are under way, but I assure her that the needs and concerns of British business are uppermost in our minds in those discussions.

[Euan Stainbank (Falkirk) (Lab)]

On the day of the Government’s necessary action to save British Steel, I sent the Secretary of State a letter requesting a meeting to discuss what further we need to do for Grangemouth, where hundreds of jobs have been lost this week when Petroineos decided to cease refining operations, and where thousands of further jobs are at risk. Will he commit to meeting me to discuss the urgent actions that we need to take to secure accelerated investment in Grangemouth’s industrial future?

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[Chris Law (Dundee Central) (SNP)]

Modelling by the Scottish Government has shown that Brexit-made barriers are likely to have reduced Scottish exports by £3 billion, compared with continued EU membership. Greater co-operation and a closer relationship with the EU will always be encouraged by SNP Members, but does the Secretary of State recognise that anything short of full single market and customs union membership continues to damage Scotland’s economy?

[Mr Alexander]

In substantive terms, the hon. Gentleman’s point is important: we should be looking to reduce unnecessary barriers to trade between the United Kingdom and our friends, neighbours and partners in the European Union. However, on a political level, it is worth recognising that, had Scotland voted in 2014 to leave the United Kingdom, it would also have left the European Union. There is a certain irony in being told that a politics of flags, borders and manufactured grievances are wrong in one context, when his party continues to argue for them in another.

[Nick Timothy (West Suffolk) (Con)]

According to reports in The Guardian, Government sources have said that issues around visas have been resolved as part of the Government’s free trade agreement negotiations with India. Will the Secretary of State rule out visa liberalisation as part of those negotiations?