Oral Answers to Questions

Jonathan Reynolds Excerpts

Thursday 12th June 2025 Commons Chamber

[The Secretary of State for Business and Trade (Jonathan Reynolds)]

This trade agreement is a huge economic win for the UK—the biggest trade deal since Brexit and the best deal that India has ever offered. As we have heard, it is estimated to increase bilateral trade by £25.5 billion, UK GDP by £4.8 billion and wages by £2.2 billion each year in the long run. It will mean new opportunities for businesses in every part of the United Kingdom.

[Alan Gemmell]

I draw the House’s attention to my entry in the Register of Members’ Financial Interests. I am having some import-export issues myself, as my first book, a provocative and racy thriller, is being published in India in July.

[Alan Gemmell]

It is called “30th State”.

May I congratulate the Secretary of State and former colleagues on this deal, which is great for whisky distilleries such as Lochlea in my constituency. When I was trade commissioner, Conservative Ministers were clamouring for a trade deal with India. Will my right hon. Friend tell the House how he has managed to do it one year after they failed miserably?

[Jonathan Reynolds]

I am extremely grateful for that question. I acknowledge my hon. Friend’s considerable expertise and service to this country through his commendable work as trade commissioner. I hope that he will advise us all on how to get a copy of his book—perhaps a copy could be placed in the Library. He is right to say that this is a great deal for every part of the UK. It is particularly strong for Scotland, given the iconic reduction in the tariff on Scotch whisky for the Lochlea distillery, and it is strong on Scottish salmon and services. These deals come down to a lot of work not just from the ministerial team but from the whole departmental team. I pay tribute to them and my officials for all their important work in this matter.

[Gurinder Singh Josan]

Last week I had the privilege of visiting A&M Pure Precision, a long-established local firm in my Smethwick constituency that specialises in designing, developing, testing and machining complex precision components in a range of materials for sectors including aerospace, automotive, motorsport, space and unmanned aerial vehicle engine systems. Given the importance of advanced manufacturing to the local economy, what assessment has the Secretary of State made of how the UK-India free trade agreement—and indeed other agreements—could create new opportunity for such firms and support wider economic growth in the west midlands?

[Jonathan Reynolds]

What a privilege it must be for my hon. Friend to represent a constituency with so many essential businesses doing such brilliant work for this country. On advanced manufacturing, he is right to say that a set of advantageous positions has been agreed, putting this country at a genuine competitive advantage, particularly in relation to sectors such as automotive and machinery, which I would expect his constituency to benefit from. India is traditionally a very protectionist economy, and it is the world’s fastest growing big economy. Whether it is for goods or services, A&M Pure Precision or the west midlands as a whole, there is so much good stuff here to celebrate.

[Jim Shannon (Strangford) (DUP)]

The Minister can expect an autographed copy of the book by the hon. Member for Central Ayrshire (Alan Gemmell) to be spinning its way towards his office as we speak.

I very much welcome the UK-India free trade agreement. It is good news, but Northern Ireland has a particular protocol issue. I know that the Minister is keen— I know it for a fact, because his answers are always good—that Northern Ireland can receive the same benefits as the rest of the United Kingdom: England, Scotland and Wales. Can he assure us that we in Northern Ireland will also be benefactors?

[Jonathan Reynolds]

I appreciate the hon. Member’s kind words. He will know that ensuring that everything my Department does works for Northern Ireland is a personal priority for me and for the ministerial team. In relation to exports, I can assure him that Northern Ireland will benefit from the advantageous position that the whole United Kingdom is in. We do have issues in making sure the more complex regulatory position from the protocol in Northern Ireland is working in the best possible way. There are very strong reasons for making that work better, if we can do so, and he has my commitment that we will seek to do that.

[Mr Richard Quigley (Isle of Wight West) (Lab)]

3. What steps his Department is taking to support entrepreneurs.

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[Laura Kyrke-Smith (Aylesbury) (Lab)]

T1.  If he will make a statement on his departmental responsibilities.

[The Secretary of State for Business and Trade (Jonathan Reynolds)]

Since our last oral question time, we have secured three major trade agreements to boost British exports and drive growth across the UK. This Government are delivering trade deals that benefit businesses and put money in workers’ pockets, and are securing deals that other Governments promised, but failed to deliver. We have an agreement with our largest trading partner, with the biggest economy in the world, and with the fastest-growing big economy in the world. As we have heard, the India deal alone will boost wages by £2.2 billion a year when fully operational. Our new strategic partnership with the EU could add nearly £9 billion to our economy by 2040, and the UK was of course the first country to secure a deal with President Trump. I can also confirm that in the past week, we have hosted delegations from the US and China, in order to assist them in their negotiations with each other. As I have always said, under this Government, the UK will be the most open and best-connected economy in the world.

[Laura Kyrke-Smith]

I congratulate the Secretary of State on his excellent work. The Government’s decision to suspend their trade negotiations with the Israeli Government last month was absolutely the right one, but some constituents have been in touch in confusion after trade envoy Ian Austin’s visit still went ahead. Can the Secretary of State affirm that this Government’s position is that we will not be deepening our trade ties with the Israeli Government while the situation in Gaza and the west bank remains so appalling?

[Jonathan Reynolds]

I am grateful to my hon. Friend for that question. Yes, I can reaffirm that position. As she says, the Foreign Secretary announced on 20 May that we have suspended negotiations on an upgraded free trade agreement with Israel in response to the egregious actions of the Netanyahu Government in Gaza and the west bank. Of course, the UK has existing business relationships with Israel that are not affected by that decision, and we maintain trade envoys with both Israel and the Palestinian territories. What we all want is peace, a two-state solution and a strong UK relationship with both states.

[Mr Speaker]

I call the shadow Minister.

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[Graham Stuart (Beverley and Holderness) (Con)]

T3. In the US trade agreement, the Prime Minister gave access to the UK market for 1.4 billion litres of US bioethanol. The Secretary of State will know that that is the entire size of the UK market. Yesterday, apprentices came here from Vivergo in my constituency. The hundreds of people directly employed there, and the thousands in the supply chain, wonder how this Government, on the verge of producing an industrial strategy, can want to abandon the nascent bioethanol industry in this country entirely. What will he do to stop that?

[Jonathan Reynolds]

I understand the prominence of the issue in the right hon. Member’s constituency. We already import a significant amount of ethanol from the US: 860,000 tonnes of bioethanol. We recognise the competitive pressures that the US trade deal will bring—it is obviously not yet in operation—and have met the companies affected and continue to negotiate with them. They are already very distressed and lose significant amounts of money, so what they really need are regulatory changes from the Department for Transport for the market as a whole. I can assure him that we are working on that.

[Chris Bloore (Redditch) (Lab)]

T5.   Rusty’s Collectables is a great new addition to Redditch high street, offering unique items such as Pokémon and Marvel collectables. Owners Russell and Amee have successfully moved from online to the high street. Can the Minister explain how the Government will help more entrepreneurs like them to turn great ideas into high-street businesses?

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[Jonathan Reynolds]

I absolutely accept that invitation, and I can tell the hon. Gentleman that we are already extremely involved, as is the Minister for Industry. We welcome what has happened with Airbus, but we are focusing a great deal on the RemainCo and the issues there.

[Olivia Bailey (Reading West and Mid Berkshire) (Lab)]

Last year, the Secretary of State joined me on a visit to our vibrant high street in Pangbourne. I recently met the owner of one of those businesses, Nino’s, a fantastic trattoria and deli. One issue that Nino raised with me was the regulatory burden on his business. How will the Government’s small business strategy deal with that key challenge, and how will it support small businesses like Nino’s, so that they can continue to thrive?

[Jonathan Reynolds]

We had a wonderful visit about a year ago, and I hope the Pangbourne Cheese Shop is still going strong. Yes, the regulatory burden on small business is a huge area of attention for this Department; there is the business growth service, our action on late payment, and our incentivising of digitisation and e-invoicing.

[Andrew George (St Ives) (LD)]

Our farmers and growers can survive only if there is a functioning supply chain, but since the creation of the Groceries Code Adjudicator, they complain bitterly about continuing poor practice and the risk of de-listing. Does the Minister not agree that it is time to beef up this organisation, and to amalgamate it with the Agricultural Supply Chain Adjudicator?

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[Liam Byrne (Birmingham Hodge Hill and Solihull North) (Lab)]

I very much welcome yesterday’s investment in UK energy abundance, but as our Committee pointed out on Friday, the success of the industrial strategy will depend on a plan to cut industrial energy costs now. When the industrial strategy is published, will the Secretary of State reassure us that there will be a plan to ensure that UK energy prices are internationally competitive?

[Jonathan Reynolds]

I thank my right hon. Friend and the Select Committee for all their work in this area. He knows my view from the evidence that I have given. The significant increase in industrial energy prices under the previous Government is a significant issue for our competitiveness—and yes, that is something that we seek to address.

[John Cooper (Dumfries and Galloway) (Con)]

When it comes to bus manufacturer Alexander Dennis and the jobs at risk there, there is not an elephant in the room—there is a Chinese dragon. The company is in competition not with commercial organisations from China, but with entities of the Chinese state. What representations will the Secretary of State make to the Prime Minister in an attempt to level a playing field that is currently about as flat as the Galloway hills?

[Jonathan Reynolds]

I firmly agree with the hon. Gentleman that a level playing field is not just an economic necessity, but a matter of economic security and production in western economies like our own. Of course, if a company has a specific case to make, it should make the representation to the Trade Remedies Authority directly—I have that power, but it would usually come from industry. If the company has a specific case to make, the hon. Gentleman should encourage it to make that representation.

[Dr Marie Tidball (Penistone and Stocksbridge) (Lab)]

It was fantastic to hear the Government’s commitment yesterday to making the UK a defence industrial superpower. At its peak, Stocksbridge Speciality Steels, in my constituency, produced 15% of global defence and aerospace steel, which is essential to our national security. What work is the Secretary of State doing to secure Stocksbridge Speciality Steels so that this valuable steel asset can be used to maintain our national security?

[Jonathan Reynolds]

My hon. Friend knows that I believe the workers at that mill in her constituency are a national asset and that I want them to have a strong future as part of our overall steel strategy. We are closely monitoring the specific situation there, which colleagues will be aware of, and are determined to find the outcome that she and I would want to see.

[Chris Law (Dundee Central) (SNP)]

The Prime Minister routinely states his unwavering support for Ukraine, yet as a result of UK Government inaction, British businesses continue to bankroll Putin’s brutal war on a colossal scale. Since the beginning of Russia’s full-scale invasion in 2022, a whopping £205 billion of Russian fossil fuel exports have been shipped by our own UK-based maritime companies or by ships with our own UK-issued insurance. Astonishingly, one company, Seapeak, has carried almost a quarter of Russia’s liquefied natural gas exports. Can the Secretary of State give us an update on what the Government are doing, and deal with this immediately?

[Jonathan Reynolds]

I am concerned by the figures the hon. Gentleman raises; if he writes to me, I will look into that immediately. We have taken extensive action to sanction not just individuals, but the shadow fleet, as it is described, transporting Russian fossil fuels, and are willing to take any action necessary.

[Kirith Entwistle (Bolton North East) (Lab)]

Yesterday, the Dad Shift campaign organised hundreds of dads to come to Parliament to campaign for better paternity leave. Does the Secretary of State agree that better paternity leave can give dads more security to spend more time with their babies, support the development of children and help gender balance in the workplace? Will he tell the House whether the issue will be covered in the upcoming parental leave review?

[Joe Robertson (Isle of Wight East) (Con)]

The chief executive of UKHospitality estimates that there will be an extra £1 billion of costs on employers for new workers—774,000 of them—coming in to the national insurance contributions regime, on top of £2.4 billion in other costs. If, by the next Budget, it turns out that the previous Budget is crushing the hospitality sector, will the Government consider tax reliefs in order to power our hospitality industry?

[Jonathan Reynolds]

The hon. Gentleman knows the Government, and the Treasury in particular, monitor the impact of all taxation. I have to be frank with colleagues: I have no idea what the Conservatives are trying to tell us today. They seem to want more spending and lower taxes—it seems like Liz Truss is still hanging around the party, to be honest. I have to ask Members on the Opposition Benches: what is your policy towards national insurance?

[Torcuil Crichton (Na h-Eileanan an Iar) (Lab)]

I welcome the UK-India trade deal, which is good for salmon and good for whisky. Will the Secretary of State use his muscle to ensure that a chain of small distilleries in my constituency and across Scotland can sell a wee dram to India, as well as the big brands?

Mr Speaker, I would like to draw the House’s attention to reports of a crash on take-off of a London-bound Air India flight from India today, and allow the Secretary of State to express our concern.

[Mr Speaker]

It is very important, and I think the Leader of the House will make reference to it when we get to business questions—if we get there.

[Jonathan Reynolds]

I am extremely grateful to my hon. Friend for updating the House on that matter. He will know that one of the brilliant things about the UK-India deal is that it is not just for the higher-value, iconic products we are all familiar with; for bulk, there is no minimum price in the deal. The deal is incredibly strong for every bit of the whisky—and gin—industry in the United Kingdom.

I am alert to the news my hon. Friend has just shared, and colleagues will update the House.

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

Greenergy, a company based in Immingham, has been forced to shut down and review some of its operations in the UK. In part, that is due to an influx of heavily subsidised hydro-treated vegetable oil from the US. Will the Secretary of State bear this in mind when he has trade negotiations with the US with a view to easing the situation?

[Jonathan Reynolds]

I shall of course take that up with the hon. Member. I have spent a fair bit of time in his constituency, as he knows, on one matter or another. On fair trade and level playing fields, colleagues can direct their industries to the Trade Remedies Authority if they have specific concerns, but, of course, we monitor those matters at a departmental level as well.

[Sonia Kumar (Dudley) (Lab)]

Since the global financial crisis, listing on the London Stock Exchange has fallen by 40%, posing a significant barrier to growth, as liquidity and investor activity decline. What steps is my right hon. Friend taking to ensure that more British businesses are listed on the London Stock Exchange and that the UK remains a leading global financial sector?

[Jonathan Reynolds]

That is an area of concern to us all. We support and continue to implement some of the listing rules and prospective changes of the previous Government, but the bigger change from this Government is to liquidity, particularly around pensions reforms. None the less, this remains an issue of key competitiveness for the United Kingdom.

[Mr Speaker]

I call Josh Babarinde for the final question.