Family Businesses: Contribution to Local Communities

John Stevenson Excerpts

Tuesday 20th December 2022 Westminster Hall

[Mr Laurence Robertson (in the Chair)]

Good morning. It is quite warm in here, so if Members wish to remove their jackets, they are free to do so. I remind Members that if they wish to speak they need to stand in order to catch my eye. I call John Stevenson to move the motion.

[John Stevenson (Carlisle) (Con)]

I beg to move,

That this House has considered the contribution of family businesses to local communities in the UK.

It is a pleasure to serve under your chairmanship, Mr Robertson. I am grateful to have the opportunity to debate the importance of family businesses and their contribution to our national economy, our local economy and our communities up and down the country. I appreciate that this might not be the best week for this debate, given that we are approaching Christmas, but this is a really important time of the year for many businesses, particularly in the hospitality industry, and an important time of the year for family businesses to succeed.

I want to put on the record my thanks to the Institute for Family Business for its support and the research that it has carried out into the success of family businesses and also the challenges that many of them face. The institute is the secretariat to the all-party parliamentary group for family business, which I chair, and it has been very supportive for all the time that I have been chairing that APPG.

I want to start the debate with a simple question: what exactly is a family business? There are many different definitions and people will have their own interpretations. The Institute for Family Business set out its own definition in its most recent report, but for me it is quite simply the involvement of family in a business. This can be a sole practitioner—an individual who has set up their own business and is effectively a one-man band. It could be a husband and wife team. The wider family and children could be involved. It could involve other members of the family such as cousins, and of course it could involve different generations. But it is also about the level of control.

When we look at a corporation, we look at the shareholding of that company—how many shares are owned by the family and how many are external. We look at who effectively controls that business. A family business might not always be run by members of the family. It might have independent management or a mixture of family members and outsiders. Each can be equally successful. They all have their own challenges, but that does not detract from the fact that they can be just as successful as a purely family-run business, or as a mixture or with outside control.

The real challenges come when there is third or fourth generation involvement in a family business. They all present different concerns. There are intergenerational matters, and shareholding or ownership of a business can be widely spread among many members of the same family.

What about the sector that the business is involved in? It is estimated that there are around 5 million businesses in the United Kingdom, all of varying sizes. Family businesses make up 85% of that 5 million, so effectively our economy is dominated by such businesses both at the national and local level. I will come specifically to the local level in due course.

The size of the businesses varies enormously. Most are microbusinesses—small one-man bands or small family units. Equally, there are some enormous businesses that have grown from small start-ups. Warburtons is a good example. Historically we could look at Mr Barclay or Sainsbury’s as examples of small businesses many years ago that became huge conglomerates and very large and successful businesses.

[Dr Lisa Cameron (East Kilbride, Strathaven and Lesmahagow) (SNP)]

I thank the hon. Gentleman for securing this extremely important debate, because family businesses are the bedrock of our local economies. In my own constituency, Glencairn Crystal started as a local family business. It won the Queen’s Award and went on to develop the iconic Glencairn Crystal whisky glass, which is now internationally renowned. Does he agree that, with the correct package of support, financial innovation, contribution and development from Government, family businesses can become iconic and international successes?

[John Stevenson]

The hon. Lady is right. It is always lovely to hear Members promoting family businesses and demonstrating their success. She also highlights an issue that I will come to about how we can ensure they get the support that they need to be successful.

I have talked about family businesses being small or large, but we must also remember that there are some huge international businesses, including Mars and McCain. An interesting general observation is that many large, international family businesses are invariably owned from North America. That indicates that family businesses are not just part of our economy but part of international economies across the world.

Family businesses are involved in all sectors. The obvious one is transport, with large transport businesses up and down the country displaying their logos. They are also in retail and manufacturing. One particular area that features a lot of family businesses is the food and drink sector. That is a very popular sector in which to set up and grow a family business. That has a knock-on impact on the hospitality industry, which has a large number of small family businesses.

[Margaret Ferrier (Rutherglen and Hamilton West) (Ind)]

Last week I went to the opening of a state-of-the-art factory by Equi’s Ice Cream in my constituency. That business has been around for a century, with its ice cream sold locally as well as in a number of supermarkets such as Morrisons, Co-op and Asda, and even as far away as Texas. Does the hon. Gentleman agree that such family-owned businesses not only contribute to our communities but are great ambassadors for them?

--- Later in debate ---

[John Stevenson]

Absolutely. It is always lovely to hear individual businesses being highlighted by Members of Parliament. That demonstrates that family businesses are not just in one constituency but spread across the whole country. We need to be behind them in our local communities as well as nationally.

From our perspective as Members of Parliament, the importance and contribution of family businesses should not be underestimated. They matter to our national economy. Family businesses employ nearly 14 million people; over 50% of all private sector employment is in family businesses, so the majority of people are employed by a family business. It is estimated that they account for 44% of our GDP. Just think of their contribution to the Treasury, which is vital for our public services.

Family businesses are clearly the backbone of local economies up and down the country as well as nationally. Think of a small family business and the contribution it makes to the Exchequer. If it employs five people, that means five families supported by that business. The contribution goes beyond that, with the payment of national insurance for those five employees, and of corporation tax. It will probably collect VAT for the Exchequer and pay business rates at the local level. It makes a vast contribution, not just to the local but to the national economy. That is replicated up and down the country.

Carlisle is a good example as the home of national and international businesses which employ a lot of people and make headlines locally because of the number they employ and their brand names, such as Nestlé and Pirelli. But drilling down, what matters in many respects is the local family businesses. Story Construction is a first-generation business now moving into the second generation, employing in the region of 500 people. It was set up in the last 30 to 40 years and makes a significant contribution to local construction and to the rail construction industry. Pioneer Foods, a food hospitality business, is into its third generation of making a contribution to Carlisle’s economy. Thomas Graham is in its fifth generation of local leadership.

We have those international brands and companies, but I have just highlighted three individual businesses at the heart of our local economy that employ a lot of people making a vital contribution. They are now into their second, third and fifth generations. The individuals who lead those businesses are also vital to our local communities. They provide leadership. They are often respected, and local people will look up to them and may aspire to be similar to them, and to set up their own businesses in due course.

[Wendy Morton (Aldridge-Brownhills) (Con)]

My hon. Friend mentions the contribution of small businesses to the local community. What I often see is something that is almost invisible. Does my hon. Friend agree that business owners often support community events, such as the recent Christmas tree festival in Aldridge?

[John Stevenson]

My right hon. Friend is getting ahead of me. She is absolutely right, and I will come to the contribution that such businesses make to local communities. There are, of course, similar factors for family businesses at the national and local level: the high employment levels in family businesses, the investment that we want to see, and the tax contribution that they make both locally and nationally, which I have already highlighted. I have set out what I think is a powerful demonstration of the importance of family businesses; however, some people would ask what the difference is between a family business and other corporations. Are they not in many respects just the same? I accept and recognise that they face many similar issues.

At present, energy costs are obviously affecting many businesses, both those that are family run and those that have other structures. It is a serious issue right now. On taxation rates, what corporation tax is set at matters to both family businesses and others, although dividend tax and capital gains tax can have a particular influence on family businesses, because of the way they structure themselves and the way the families take profits out of the business. Skills matter to any corporation, as does getting the right staff and ensuring that the right training is in place. That also matters to a family business, which needs to recruit in exactly the same way as any other. Regulation affects different sectors in different ways. I have already highlighted the importance of the food and drink sector, on which regulation clearly has a huge impact.

There are, however, a number of issues that in my view are unique to family businesses. The obvious one is succession. Passing the business on to the next generation, or indeed between families, can be a challenge. Who should inherit? Who takes over? Can the older generation let go and allow the next generation to take the reins of the business? If there are cousins, or two or three generations, involved, how is that dealt with? Those are some of the principal challenges for family businesses, and the Institute for Family Business spends quite a bit of time helping to support family businesses with them.

There are additional challenges with financing and growing family businesses. How do we ensure that a family business can grow in exactly the same way as other corporations? In my view, family businesses have a real strength, in that they can draw financial support from members of the family, which can help with that growth. It can also be a weakness, because they need to attract external finance to grow. Family businesses must be willing to accept outside help and allow external influences to support the business in its attempt to grow. Families have to accept the risk that they may be taken over, or that their influence in the business will be diluted by external investment from other parties.

Family businesses also have some key strengths, such as resilience. They often deal with recessions better than most other businesses. They are flexible and more adaptable in terms of hours of work. A person is more likely to want to work longer hours in their family business to ensure that it will cope with any bumps on the road. Family businesses also take the long view. It is not just about the next set of financial figures; it is about the next generation. That can lead to long-term investment, rather than a short-term view about making profits here and now. The stats suggest that often staff are loyal, and remain with such businesses for far longer than they would otherwise. Also, family businesses are invariably very loyal to their staff, who in many cases have worked for them for many years. That creates a real element of stability.

[Kevin Foster (Torbay) (Con)]

Does my hon. Friend agree that family businesses showed that loyalty to staff during the pandemic? For example, a number of tourism businesses in Torbay decided that the family would take no wages to ensure that staff could be paid, which we would not see in many other corporations.

[John Stevenson]

My hon. Friend makes a valid point. We saw that in the pandemic, and we often see it in recessions as well. Family businesses are more resilient and stay loyal to their staff, and that gets them through in a way that many other businesses would not necessarily tolerate. Another interesting aspect of the research from the Institute for Family Business is that there is more female involvement in family businesses than in general in business; we should research more why that is the case.

Family businesses are often the start of something. They start as very small businesses, then continue within the family, or at least owned or controlled by the family, but with external management; or they dilute and float on the market. I do not think that selling out is a negative, as the business—what the family have created—is successful and can continue to thrive but in a different environment and under a different structure. Life does move on.

I am a solicitor, and work in a practice that was set up in 1805. Until 1916, three generations of the family were involved. Since then, there has been no family involvement, but the business is still going strong today and it had that family involvement for those three generations.

Where I think family businesses provide an extra layer of benefit is in terms not of the economy but of the community. Family businesses are often embedded in their community. The children go to local schools. The business employs local people. The families want the local area to succeed because they live in it and socialise in it—they are part of it. They often get involved, as school governors and in charities and other community organisations. If they are brave, they may even get involved in local politics; they may get involved in other things, such as the local enterprise partnership or the chamber of commerce. They are invariably respected leaders in the community—people want to emulate them. That support to their local areas is a real strength of family businesses and the leaders within them; that element does not show up in national statistics, but it is vital to the success of our communities up and down the community.

I am very conscious of the lack of Government recognition for the importance of family businesses. I think everybody here would recognise that they are the backbone of our economy and a source of strength for our communities. Is there more that the Government could do, on the growing of these businesses, and in understanding their nature, the challenges they face and how we can ensure the investment and finance for them so that they will grow, expand and become the big corporations of tomorrow?

There is also the skills agenda. Training opportunities can be difficult, as many of these businesses are small or micro businesses that find it challenging to train staff and to get the skills they need. What can the Government do to support them?

There is also a need for general advice, for not just financial but succession planning. Quite often, family businesses feel they are operating in isolation. That is why organisations such as the Institute for Family Business are so important, because they help with that sort of advice, but many businesses do not get it. I wonder whether the Government could do more to help.

There is also the issue of profile. Leaders in the community, as I have already said, often come from family businesses. Some, though not many, have a national presence. Sadly, trust in business is at a low ebb right now, but family businesses often have a far better reputation. It may be that the Government should be seeking to exploit that in a positive way. We need businesses to succeed. We should celebrate their successes. I think people often feel more comfortable celebrating the success of a family business than the success of what they perceive as a faceless corporation. Maybe the Government need to associate business more with the family side of things, demonstrating the importance and the vital contribution family businesses make to our society, as well as to our economy.

In society, families really do matter. In business, family businesses are absolutely vital. Let us celebrate their success, but let us help them more than we do to ensure that they continue to be the backbone of our country and central to our communities.

[Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)]

It is a pleasure to serve under your chairmanship, Mr Robertson.

As a Scot myself, let me say that it is a pleasure to hear a canny Scot—the hon. Member for Carlisle (John Stevenson)—taking us through this important subject; I always think a gentleman from Aberdeen would have a particularly good grasp on the vital need to make ends meet and run a tight ship.

I ran my family business for eight years, and my brother runs it now. It was a cheesemaking business that grew out of small dairy farm on the shores of the north Firth. For eight years, I had to juggle the profit and loss account and know how to do a VAT return—I had to do all that stuff, and it was invaluable experience. I will not go any further, because I cannot plug a family business too hard, but my brother continues in the same vein and I am very proud of him.

Let me expand on the points made by the hon. Member for Carlisle. The local contribution of family businesses is crucial. They tend to use the local bank: businesses in my constituency deposit large amounts of money in the local branch and help keep it open. They mostly use a local solicitor, and that equates to jobs in the local area. They use a local estate agent if the need arises, and local shops. They rely on their reputation, as the hon. Gentleman hinted at; local businesses do not want to make a mess of things locally, because it is on their own doorstep. Those are the key things they bring to their areas.

No local business will survive if it cannot balance the books and get it to work. That expertise, as the hon. Gentleman said, makes a huge local contribution, in terms of the chamber of commerce, local government and so on. As a passing aside—this is as much about my party as any other party in this place—we could do with more local businessmen in the House of Commons. If we go back 100 years, there was a time when many Members of the House of Commons had made their fortune and knew what they were talking about when it came to the big issues. That would be no bad thing. But that criticism is not directed at any one party; it includes mine.

[John Stevenson]

The hon. Gentleman makes a really interesting point about getting people with business experience here. Does he agree that, although traditionally important local businesspeople became members of the council, we do not see that today, and that is a big loss to us all?

[Jamie Stone]

That is a very apt point. I was elected to Ross and Cromarty District Council in 1986, which was a long time ago, and I have seen the sort of people who become members change dramatically in my lifetime. When it comes to local government finance, to have hard heads on the finance committee does not half help things.

Nurturing local businesses sits within a wider framework, which the hon. Gentleman touched on. He mentioned advice and access to finance as and when needed. Many of us feel that the day of the local bank manager has gone—the man or woman who could talk to the businessman and say, “Okay, that is a good idea. I’m willing to offer the following finance.”

In my part of the UK—my very far north constituency—a local business will do well and thrive if it has the support to which I alluded. We have an organisation called Highlands and Islands Enterprise, which was conceived by the Wilson Government in the 1960s, and did much good work over the years. I am sad to say that it is not what it was all those years ago. It is weaker, through no fault of its own; it is a small organisation and does not have the ability to offer advice and target finance as and when necessary. A lot of other infrastructure is required in our constituencies—in my own case, an airport, rail links and road links. A hardy perennial is the NHS, and I often raise the issue of maternity services. If any one of those vital key support networks is not up to standard, that sadly makes life harder for local businesses, particularly when it comes to recruitment or expansion.

I will close with an example. In Caithness we have an engineering firm called JGC Engineering, which is owned by the Campbell family. It is a third-generation firm that grew out of a blacksmith business, and it makes clever stainless steel stuff for the nuclear industry, Dounreay and others. As right hon. and hon. Members know, I have often talked about the potential of a space launch coming to my constituency—and I think it is just around the corner. A company such as JGC Engineering can use that but, if it does not have the infrastructure links, the back-up and so on, it will be harder for the company when the big day comes and it can go for those contracts. It is a basic point, and I make no apology for emphasising it again and again.

It remains only for me to wish all right hon. and hon. Members the compliments of the season, a very happy Christmas and a prosperous—in the business sense—new year.

--- Later in debate ---

[John Stevenson]

I thank the Minister for his contribution. He is a very unusual Minister in Government terms, in that he is a round peg in a round hole.

I also thank all colleagues for their contributions. It has been very interesting to hear about the significant contribution that family businesses make not only to local economies but—and this is equally important—to local communities up and down the country. Some 85% of all businesses are family businesses, and if I were to give one challenge to the Government on growing the economy, it would be to recognise that it is absolutely vital that those family businesses grow, expand and become much bigger, such that they contribute not just locally but nationally. That is how we will grow our economy. There needs to be greater recognition of the importance of family businesses, and we need to ensure that they grow, expand and receive support.

Finally, I follow the Minister in wishing everybody a merry Christmas and a happy new year. I hope that 2023 will not be as exciting as 2022.

[Mr Laurence Robertson (in the Chair)]

I also wish everyone a happy Christmas and a very peaceful new year.

Question put and agreed to.

Resolved,

That this House has considered the contribution of family businesses to local communities in the UK.

Oral Answers to Questions

John Stevenson Excerpts

Tuesday 29th November 2022 Commons Chamber

[George Freeman]

Even better than that, I can make sure that the energy Minister, my right hon. Friend the Member for Beverley and Holderness (Graham Stuart), meets the hon. Gentleman. We are aware of this problem and we are actively working on it.

[John Stevenson (Carlisle) (Con)]

12. What recent assessment he has made of the efficiency and effectiveness of his Department’s capital spending.

[The Minister of State, Department for Business, Energy and Industrial Strategy (George Freeman)]

As the Department for science, research and innovation, with the historic uplift in public R&D announced in the comprehensive spending review 2021 and the autumn statement 2022, and the Department for net zero, BEIS secured the highest increase in capital budgets at the last spending review, growing at 8.3% per annum over the spending review period.

[John Stevenson]

As we know, capital expenditure spent effectively drives economic growth. To this end, would the Minister agree that capital projects such as those in my constituency that will clearly help economic growth and can start in the next 12 months will be prioritised, and that additional support will be given where they have shortfalls due to rising costs?

[George Freeman]

My hon. Friend has put his powerful point on record. I can assure him that the Department is actively working with the Treasury to make sure that those sorts of schemes are accelerated.

Small Modular Reactors

John Stevenson Excerpts

Wednesday 20th February 2019 Westminster Hall

[Trudy Harrison]

I absolutely agree. It will be no surprise that I commend Goodwin International for the work it does in the defence industry. This is all about ensuring that British companies can contribute and can benefit companies in the supply chain, which provide components and, most importantly, jobs and apprenticeships. I understand that 125 new apprenticeships are coming from Goodwin, and there will be many more in the future.

[John Stevenson (Carlisle) (Con)]

I congratulate my hon. Friend on securing this debate, which is important for not just our country but our county. She talks about the private sector. Does she agree that there is a role for the Government, who should make a real commitment to supporting the SMR sector? That may include a financial contribution.

[Trudy Harrison]

I thank my hon. Friend for that important reminder that we cannot do this without Government support. We have the capability and the demonstrable need. The industry is desperate to be part of the solution, but we must have the Government’s financial policy and industrial support to take this forward.

From light water reactors to heavy water reactors, and molten salt to sodium cooled, the innovation in fission technology is most certainly alive and kicking. Some of our greatest, most innovative companies are now interested in building small reactors in the UK. Moltex, Atkins, NuScale, EDF, DBD, U-Battery Developments, Westinghouse, Sheffield Forgemasters and Rolls-Royce—these companies and hundreds of others involved with their supply chains, such as Goodwin, need our political, financial and industrial support.

Today, there are about 50 civil small modular reactors at various stages of research and development across the world. Fleet build is widely anticipated to bring a swifter return on investment, with lower barriers to entry and standardisation. As politicians, it is surely our job to ensure that policy takes possibility towards probability. Constructing single or incremental small modular reactors on nuclear-licensed sites, where the existing industrial power requirement is currently dependent on fossil fuel, is surely a credible, sensible and more sustainable way to power the UK and beyond.

There is one such location on the outskirts of the Sellafield site in Copeland. Fellside is a combined heat and power plant with a capability of about 170 MW, but it is due to come out of service later this year. It is outwith the nuclear licensed site boundary, but it has the benefit of the Civil Nuclear Constabulary for security, and obviously has a huge adjacent industrial power requirement, which is currently dependent on gas. Will the Minister consider Fellside a suitable, if not perfect, site for a future small modular reactor, and value the huge potential for further advanced manufacturing facilities in Copeland?

This is not just about being the first, although we do have an impressive track record of firsts: the first civil nuclear reactor, the first Magnox reprocessing plant and the first thermal oxide reprocessing plant. In the words of my Prospect union rep:

“With the most experienced workforce in the nuclear industry, West Cumbrians do it best”—

and we want to keep doing it.

I hope the Minister will tell me and the other Members in this debate who share my passion for nuclear how his Department will create the right market conditions to enable developers to bring new reactors to market and to create national and international markets. Grasping the opportunity to meet our domestic power requirements and capitalising on the early-adopter benefits of a multi- billion-pound, global export market while tackling the energy trilemma of security, affordability and environmental sustainability will mean that Cumbria continues to be the centre of nuclear excellence.

This is not rocket science—although we do a bit of that at the National Nuclear Laboratory—but a case of multiples: the more we build, the cheaper things get. Many of the UK’s 15 nuclear reactors will come to the end of their long-serving lives by 2030, leaving us perilously vulnerable and dependent on fossil fuels. We must get serious about meeting the world need for affordable and reliable electricity, while slowing down global warming before it is too late.

Thank you, Mr Paisley, for listening most intently. I look forward to a robust debate and to the Minister’s considered response to the points that I have made and that other Members will no doubt make as well.

--- Later in debate ---

[John Stevenson (Carlisle) (Con)]

I reiterate my congratulations to my hon. Friend the Member for Copeland (Trudy Harrison) on securing the debate and, more importantly, on being a real advocate for Copeland and the nuclear industry. I have played a secondary role to her and have held a couple of nuclear conferences in my constituency. I am grateful to the Minister for attending the one I held last year.

I am disappointed that the original development at Moorside did not go ahead. NuGen did a huge amount of work and it is to be congratulated on that effort. I pay tribute to Tom Samson and his team for the work they did. It is a disappointment that the development did not go ahead. The investment would have helped to transform Cumbria—not just west Cumbria but the whole county—and brought tremendous economic benefits. In addition, it would have provided 7% of our national energy needs and made a significant contribution to the low-carbon economy.

I believe the Government could and should take a proactive interest in the nuclear industry, including by investing directly in it. None the less, Moorside did not happen, so I look to how Cumbria’s strengths can be used in the future, particularly with regard to the possibilities of SMRs. Cumbria has two unique selling points: tourism and the nuclear industry, which employs a huge number of people. Some 10,000-plus are employed at Sellafield, we have the National Nuclear Laboratory and the Low Level Waste Repository, and there is a highly skilled supply chain. The industry’s impact on the area is significant in terms of employment, apprentices, graduates, research and skills. We must use the opportunities and skills we have to ensure that Cumbria exploits the alternatives that are available in the nuclear industry.

I have talked about the local interest but, as I say, there is also a national interest. We are moving to a low-carbon world. How will we achieve that? Renewables undoubtedly will be a significant element, and I am a big supporter of solar, but nuclear clearly has its place in the energy mix. I have supported large nuclear plants, but clearly we need to get behind the development of SMRs, which may well be the future for our country. They offer greater flexibility, many commercial opportunities and a real chance for the UK to rediscover its nuclear development expertise.

I believe that if we do that, Cumbria will play a central part. As I have already said, we have the skills and the expertise, the research facilities and the land, but probably most importantly, we have a population that supports the nuclear industry. Our people want to get behind the industry, in the interests of Cumbria and our national economy.

Honda in Swindon

John Stevenson Excerpts

Tuesday 19th February 2019 Commons Chamber

[Greg Clark]

As my hon. Friend the Member for Chelmsford (Vicky Ford) said earlier, we are the second country in the EU in terms of take-up of electric vehicles. I do not think the hon. Lady will find anyone in the industry who doubts the commitment my colleagues and I make to our industrial strategy and advancing that leadership. That is noted not just in this country, but around the world. As I said earlier, it is frustrating that the timing of this decision by Honda does not allow it to avail itself of some of the fruits of that strategy.

[John Stevenson (Carlisle) (Con)]

Manufacturing represents about 20% of the Carlisle economy, which is twice the national figure, and many of those businesses export to Europe and to the rest of the world. Probably most important of all, they provide jobs, security and livelihoods for thousands of people who live in my constituency. Does the Secretary of State agree that we must do nothing that endangers that success? Does he further agree that he must ensure we continue to have access to our biggest export market, as well as a domestic environment that is stable and certain?

[Greg Clark]

I agree with every part of what my hon. Friend says. At a time of change and challenge for the industry, this is just the time to provide the certainty, commitment and enthusiasm about the future that will retain and attract investment from this country and around the world.

Oral Answers to Questions

John Stevenson Excerpts

Tuesday 12th February 2019 Commons Chamber

[Claire Perry]

I agree entirely with the hon. Lady about this being an important part of our energy market, which is why I am so proud that 99% of our solar installations have happened since a Conservative-led Government have been in power. I frequently meet the Solar Trade Association, which is always a pleasure. I encourage her to look beyond a regime of subsidy for delivering renewable energy, as the evidence of the numbers suggests that there are 2.3 GW of solar projects in the pipeline that already have or are awaiting planning permission and that could be delivered without subsidy. We are moving rapidly to a subsidy-free world for solar generation. [Interruption.] The hon. Lady shakes her head, but it is true. It is important that we do not equate subsidy with output, and with actually delivering the power we want.

[John Stevenson (Carlisle) (Con)]

Does the Minister agree that making solar power compulsory for all new builds would be beneficial for the homeowner, would remove any need for subsidy and would cost the taxpayer nothing?

[Claire Perry]

My hon. Friend raises an excellent point. He will know that building regulations now set minimum energy standards, couched in performance terms rather than being prescriptivist about the types of technology that should be used. Builders are increasingly adding renewable energy systems, but I am always interested to see what more we can do to bring forward such a good way of lowering bills and CO₂ emissions.

Oral Answers to Questions

John Stevenson Excerpts

Tuesday 20th November 2018 Commons Chamber

[Greg Clark]

I am delighted that the hon. Gentleman takes such an interest in this. He will know that the nuclear sector deal provides for training, new institutions and new apprenticeship and scholarship opportunities for nuclear engineers in both the civil and defence sectors. This is all part of an agreement across the industry with Government to ensure that the next generation of nuclear power is supported by new-generation nuclear engineers and technicians.

[John Stevenson (Carlisle) (Con)]

The Government were very keen to emphasise that the Toshiba-Korea Electric Power Corporation negotiations over NuGen were a commercial matter. If the Chinese nuclear company CGN—China General Nuclear Power Group—agrees to develop Moorside on a commercial basis, with no Government subsidy, would the Government support it?

[Greg Clark]

As my hon. Friend knows, in each case the proposals are developer-led, so it is for proponents to come forward. As I have said to our hon. Friend the Member for Copeland (Trudy Harrison), I am very happy, with my officials, to meet anyone who has an interest in doing so.

Nuclear Power: Toshiba

John Stevenson Excerpts

Monday 12th November 2018 Commons Chamber

[Greg Clark]

There is no one more committed than I am to the role of renewables in decarbonising our electricity supply. In fact, I am proud that the UK has delivered the fastest rate of decarbonisation in the G20 in the last years. We have created more than 400,000 jobs —many of them in Scotland—in low-carbon businesses and the supply chain. Renewable capacity in this country has quadrupled since 2010, and 30% of our electricity comes from renewables. Our record on renewables stands comparison with that of anyone else in the world.

However, my belief is that we should have a mix of low-carbon energy sources, and it is important that we should have low-carbon power from nuclear as part of that mix. I am surprised that the hon. Gentleman does not recognise and pay tribute to Scotland’s proud nuclear tradition. Many people are employed now, and have been employed in the past, in nuclear—at Chapelcross, Dounreay, Hunterston and Torness. The former leader of the hon. Gentleman’s party actually wrote to EDF to request and support the extension of the life of Hunterston and Torness well into the 2020s, so that they could continue to provide those jobs and that power. The hon. Gentleman talks a different game from his party’s correspondence.

[John Stevenson (Carlisle) (Con)]

From where I am standing, it appears the Government do not have a coherent energy policy, particularly with regard to nuclear, and that has clearly had an impact on the Cumbrian economy. Given what has happened at Moorside, what does the Minister intend to do to support the Cumbrian economy?

[Greg Clark]

My hon. Friend is a great champion of the nuclear sector in Cumbria. It has a bright future. As he knows from the sector deal, there is investment in the supply chain and in reducing the cost of new nuclear, which will be essential if it is to compete with other sources of power. There are also great opportunities through decommissioning, not just in this country, but in selling expertise around the world. Cumbria is the centre of that expertise; it has a strong strategic role in our economy; and we will back it all the way.

Oral Answers to Questions

John Stevenson Excerpts

Tuesday 16th October 2018 Commons Chamber

[Greg Clark]

The hon. Gentleman raises a very important question. The essence of the CMA investigation is to see whether there could be—not just nationally, but in particular places—any diminution of competition. If the CMA thinks that that is in prospect, it has the powers to block the merger or to place conditions on it, such as requiring the sale of businesses to a competitor.

[John Stevenson (Carlisle) (Con)]

4. What steps he is taking to tackle rising energy prices.

[The Minister for Energy and Clean Growth (Claire Perry)]

My hon. Friend’s constituents are keen to invest in the energy transition, as well as to ensure that their bills do not go up. Earlier this year, we brought forward the price cap Bill, which received strong cross-party support, and we are looking forward to those provisions coming into place by the end of the year. We estimate that my hon. Friend’s constituents on the most expensive tariffs will save around £120. All the other steps that we are taking, including the roll-out of smart meters, the warm home discount, the energy company obligation—which is now focused on the most fuel-poor households—and our work with Citizens Advice and the Energy Saving Trust are helping to keep bills down.

[John Stevenson]

I thank the Minister for that positive response. Given that we as a society want carbon-free energy but also low energy costs, does she agree that requiring all newly built residential properties to incorporate solar panels would be a step in the right direction, and will she ask her Department to consider that initiative?

[Claire Perry]

My hon. Friend is quite right that solar PV has an important role to play in the energy system. It might be ideal on some existing or new build homes. What I hate to see is the tokenistic solar panel that some developers pop up on roofs. Obviously, there may well be more effective and expansive measures to reduce running costs and cut emissions. When the Prime Minister launched her buildings mission as part of the industrial strategy earlier this year, she targeted the measure of overall energy. We want to halve the energy consumption of all new buildings by 2030 and we are working closely with the construction sector to deliver that goal.

Draft Business Contract Terms (Assignment of Receivables) Regulations 2018

John Stevenson Excerpts

Monday 10th September 2018 General Committees

[Fiona Bruce (Congleton) (Con)]

On a point of order, Mr Sharma. Having heard the introduction to the debate, I draw hon. Members’ attention to my entry in the Register of Members’ Financial Interests. I am a member of an SME LLP firm, but it has had no involvement with invoice finance in relation to its own contracts during the whole of its existence.

[John Stevenson (Carlisle) (Con)]

Further to that point of order, Mr Sharma. I am also a partner in an LLP, but we are not involved in the discussions that the Committee is considering. I refer hon. Members to my entry in the Register of Members’ Financial Interests.

[The Chair]

Thank you very much.

Nuclear Sector Deal

John Stevenson Excerpts

Wednesday 11th July 2018 Westminster Hall

[John Stevenson (Carlisle) (Con)]

I congratulate my hon. Friend the Member for Copeland (Trudy Harrison) on securing the debate on an issue that is important nationally, regionally and of course to her constituency.

I welcome the nuclear sector deal. Clearly, it is not a panacea, but it is an important and significant deal which will undoubtedly help the sector—in many respects it is a signpost for the industry. The implications will not only be positive and raise the profile of the sector, but demonstrate to a wider audience the worth of the nuclear industry and its significance.

A key part of the Government’s industrial strategy has, without doubt, to relate to energy: energy is vital to ensure that the industrial strategy works for the country. It also relates to energy security, and importantly, to ensuring that we have a proper base supply of nuclear energy, but with the right price so that the industry can be competitive and residential users can benefit.

The central parts of the nuclear sector deal that I think are important for my constituents relate to skills, R&D and the supply chain, so I will be a little parochial and touch on Cumbria. In many respects, Cumbria has two USPs—unique selling points—tourism and the nuclear industry. They are of similar economic value to the county, at about £3 billion each. The real challenge for Cumbria is to ensure that the nuclear deal benefits not just one part but the whole of the county. That is why research and development is so important—we can be a world leader, and already have many innovations and developments in Cumbria. Sellafield is at the forefront of decommissioning, and the skills that come from that are so important, not only to Cumbria but to the wider industry. We must not forget the importance of the defence industry and BAE Systems down in Barrow, which demonstrates that Cumbria is home to the whole spectrum of the nuclear industry. The third element is new build, and we would like to see NuGen get on with developing the new power station in Cumbria, which will directly benefit the whole country as well as the county.

The nuclear sector deal must be looked at not in isolation, but in terms of its importance for the wider economy. It can influence the supply chain, and in my constituency we have a couple of examples: Bendalls Engineering, a significant supply chain enterprise for Sellafield, and Clark Doors Ltd, which innovates in door technology and has built a relationship with Sellafield and the nuclear industry. There is also the benefit of employment opportunities, which go beyond nuclear and into professional services and the supply chain. Importantly for Cumbria and the national economy, we must maximise the nuclear pound in our communities, and recognise nuclear as a catalyst for economic development and economic growth. I very much support the Government’s initiatives. Nuclear must not be looked at in isolation but as part of the wider economy, and it therefore needs to work with local enterprise partnerships, councils and, clearly, the private sector.

I have some direct questions for the Minister. Will he confirm his support for NuGen and the development of a new build in Cumbria? Will he indicate when legislation on the RAB will be introduced? My hon. Friend the Member for Copeland mentioned the RAB and its importance for nuclear development. She also highlighted the importance of changing the role of the NDA, which should be about development, not just decommissioning. Finally, I thank the Minister for agreeing to come to the second Cumbria nuclear conference, and I very much look forward to seeing him there.

[Several hon. Members rose—]

--- Later in debate ---

[John Woodcock (Barrow and Furness) (Ind)]

It is a pleasure to serve with you in the Chair, Mr Owen, and to follow such a well-considered speech by the hon. Member for Stoke-on-Trent South (Jack Brereton). I thank him for what he said about Barrow, and for the components that his constituents so expertly make. I also thank him for the adept way in which he raised the need and the opportunities for deeper collaboration between the military and civil nuclear sectors. That is the only way I can excuse the hon. Member for Carlisle (John Stevenson) for what seemed like the appalling omission of Barrow shipyard from his roll-call of the fantastic components of Cumbria’s economy.

I congratulate the hon. Member for Copeland (Trudy Harrison) on securing this debate. I have worked closely with her on the collaboration between military and civil nuclear, and I associate myself with all the points that she made in her excellent speech. We want to ensure that south and west Cumbria becomes a global hub of civil and military nuclear excellence. We have world-class skills at Sellafield and Barrow shipyard, and we will have them in time with NuGen—I will say more about that in a moment. We are determined that the area should do more to promote itself as one travel-to-work area, look outwards to the world and give a joint message about what we can do together.

We need support from the Government to do that. It is great to see the Minister here, not least because the debate gives him the opportunity to answer questions that he was unable to answer last week, when he was not in the House for my urgent question on the nuclear sector deal. In that urgent question, I raised our need for support from the Department for Business, Energy and Industrial Strategy for our bid to better connect south and west Cumbria, not simply metaphorically but literally and physically. We need the support of BEIS in order to persuade the Department for Transport that the transport links in our area, notably the A595 along the Cumbria coastline, which is in an appalling state, need to be addressed.

[John Stevenson]

Does the hon. Gentleman agree that it is important to have joined-up thinking within Government in this area? Yes, this is the nuclear sector deal, but it goes beyond nuclear. We need to get the Department for Transport, the Treasury and BEIS involved, so that we address issues such as the A595, which he rightly points out is badly in need of improvement.

[John Woodcock]

The hon. Gentleman is absolutely right, and I thank him for his continued support on the campaign to get the A595 to work. The Department for Education needs to be part of that joined-up thinking, because one of our other big challenges—the deal touches on this, but it is felt particularly acutely in south and west Cumbria—is raising our school standards. We have some of the most advanced jobs it is possible to have, certainly in the large-scale manufacturing projects in Barrow shipyard, yet we have school leavers with lower than average numeracy and literacy. That cannot be right, and we all need to work together to raise those standards, so that the workers we will need in future are capable of doing the tasks we need them to do from the moment they leave school.

Finally, the Minister needs to answer vital questions about the future of the Moorside development in west Cumbria. It would be unconscionable if that development did not go ahead. What the hon. Member for Copeland said about the regulated asset base is absolutely right, but this is a perilous moment for the NuGen deal. We need to hear from the Government that they will stand by the development come what may, be it with a regulated asset base or something else, and that they will not allow Moorside to stall, given the many thousands of jobs and the energy security it would bring, which are crucial to the nation. The Minister can give that message today, and we in Cumbria need to hear it.