Oral Answers to Questions

Jonathan Reynolds Excerpts

Thursday 17th July 2025 Commons Chamber

[Andrew Ranger (Wrexham) (Lab)]

3. What assessment he has made of the potential impact of the industrial strategy on north Wales.

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

I am delighted by the hugely positive response that the industrial strategy has received. It is a plan to lift every part of the country, making it easier and quicker to do business and to invest. For north Wales, with its formidable prowess in advanced manufacturing, it is a very significant set of proposals. The same is true for Wales as a whole, as I demonstrated on Monday at Port Talbot at the groundbreaking of the new electric arc furnace, which will get the enhanced supercharger discounted energy price.

[Andrew Ranger]

I totally agree with my right hon. Friend; this Government’s industrial strategy backs businesses in Wales not just with words, but with action and billions of pounds of investment over the next decade. In Wrexham, we are fortunate to have fantastic businesses, such as Kellogg’s and Hydro Aluminium among others, which have exciting ambitions for high-tech expansion. One barrier that needs to be overcome is sufficient power supply to the industrial and trading estates where they are based. Will the Secretary of State please update me on how the strategic sites accelerator will support them in doing so and the proposed timeline for its implementation?

[Jonathan Reynolds]

I thank my hon. Friend warmly for his question. I am excited about this. The strategic sites accelerator will prepare and accelerate sites for development by using Government tools, such as land acquisition, planning certainty and infrastructure support, to overcome existing barriers to investment on sites. It is designed to create jobs, to attract investment and to support our industrial and net zero priorities. It will work alongside other initiatives such as the connections accelerator service, which will streamline grid connections for major investment projects. It is about going faster, being bigger and being more ambitious for new investments, such as those that could come to my hon. Friend’s area. I can tell him that the Office for Investment is working jointly with the Ministry of Housing, Communities and Local Government and Ofgem to take this vital work forward. I expect capital to be deployed initially under this programme in 2026-27.

[Charlie Maynard (Witney) (LD)]

4. If he will suspend the export of UK-produced F-35 components to Israel.

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[Luke Myer (Middlesbrough South and East Cleveland) (Lab)]

5. What assessment he has made of the potential impact of the industrial strategy on Teesside.

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

My hon. Friend’s area is one of the most exciting investment locations in the world—in clean energy opportunities, carbon capture and storage, and offshore wind, but also in creative and digital investment, chemicals production and steel. Specific interventions for the Tees Valley include recommitting £160 million for its investment zone, enhanced support for the Teesside freeport for clean energy industries, and a lot of money for transport for city regions funding. Of particular interest to businesses in his area will be the new British industrial competitiveness scheme, which will reduce electricity costs by £35 to £40 per megawatt-hour for many businesses in Teesside.

[Luke Myer]

I am pleased that the Government have been listening to us and backing Teesside businesses with serious investment—I have been pushing for investment in clean power and advanced manufacturing. Last year, the 2024 UK tech jobs report named Middlesbrough as the UK’s fastest-growing tech destination. Will Ministers work with me to bring in investment in frontier technologies such as artificial intelligence to our region as well?

[Jonathan Reynolds]

My hon. Friend and his colleagues are incredible champions for bringing investment into the area, and I recognise and thank him for that support. He is right to say that some of the perhaps more traditional industries, though very exciting for the future, are not just the only story in his area. He has mentioned tech and the creative industries too, and I would say they are huge opportunities. Specifically, our investment in skills to make sure that there is a pipeline of talent in every part of the country is a formidable and significant contribution to delivering on those opportunities. I look forward to continuing to work with him on these issues.

[Emma Foody (Cramlington and Killingworth) (Lab/Co-op)]

6. What recent steps he has taken to support postmasters seeking redress for harm caused by faulty IT systems.

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[Perran Moon (Camborne and Redruth) (Lab)]

10. What assessment he has made of the potential impact of the industrial strategy on Cornwall.

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

As we have heard, the industrial strategy is a plan to lift every part of the country, and it specifically recognises clean energy opportunities for offshore wind and nuclear in the great south-west. The strategy also highlights foundational industries relevant to its eight sectors’ supply chains, including spotlighting critical minerals clusters in Cornwall. It included the launch of a new UK Export Finance loan guarantee scheme for domestic suppliers selling critical minerals to UK exporters. The upcoming 2025 critical minerals strategy will aim to secure a steady supply of minerals, optimising domestic resources and enhancing international collaboration.

[Perran Moon]

As the Secretary of State mentions, with its vast renewable energy and critical mineral resources, Cornwall is uniquely positioned to become a key driver of UK economic growth. Although the industrial strategy emphasises the role of mayoral strategic authorities and city regions, particularly in the north and midlands, does the Secretary of State agree that Cornwall’s immense industrial potential must not be overlooked, and can he reassure me that unleashing the Cornish Celtic tiger with the economic investment that we need is not contingent on joining a mayoral combined authority?

[Jonathan Reynolds]

I can give my hon. Friend that assurance. I was dismayed this morning to wake up and hear the Reform party actively arguing for less investment in Britain and telling businesses they should not invest in the UK. I find that absolutely absurd. There are a whole range of tools for local areas to shape their economies in the industrial strategy. Some relate to mayors, but many do not. It has the mix of tools that is required to unleash the potential of every part of the country, including his own.

[Andrew George (St Ives) (LD)]

Further to that very encouraging response from the Secretary of State, does he acknowledge that Cornwall is the poorest region in the United Kingdom? It has great opportunities, as the hon. Member for Camborne and Redruth (Perran Moon) pointed out, but it has been hampered since losing the highest level of EU structural aid. If we are going to take the opportunities and overcome the challenges that Cornwall faces, would the Secretary of State be prepared to meet the hon. Member for Camborne and Redruth, me and other Cornish Members to establish a bespoke strategy for Cornwall to drive the private and public investment needed?

[Jonathan Reynolds]

First, let me say that, as someone who used to spend their family holidays in Cornwall, I must protest: I have had two questions from Cornish colleagues and not a single invite to visit Cornwall over the summer holidays. I really think that is unacceptable.

The economic history of Cornwall is particularly interesting—I have had this discussion with my hon. Friend the Member for Camborne and Redruth (Perran Moon)—and I recognise some of the specific issues that the hon. Member for St Ives (Andrew George) has identified there. Of course, I am always willing to meet him, either in Cornwall or here in Parliament, to have that discussion. I believe there are key parts of the industrial strategy that will deliver the opportunities and the tools required to unleash what both colleagues are trying to achieve.

[Lee Barron (Corby and East Northamptonshire) (Lab)]

11. What steps he is taking to support independent retailers.

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

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

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

This has been a year of real achievement for the Department for Business and Trade. From holding our record-breaking international investment summit, which saw £63 billion committed to the UK, to intervening decisively to save British Steel’s Scunthorpe site and all the shipyards at Harland and Wolff, we have safeguarded thousands of jobs. We have reformed the Competition and Markets Authority, changed the zero emission vehicle mandate, altered the remit of the Low Pay Commission and introduced the Employment Rights Bill.

We have quadrupled compensation payments to victims of the Horizon scandal. We have agreed trade deals with India, the EU and the US and published a comprehensive trade strategy to help us to secure greater access to global markets for British business. We have brought forward our industrial strategy, and last week a survey by Deloitte found that Britain has become the most attractive place to invest in the world. We are delivering this Government’s plan for change, putting money into people’s pockets, driving growth and kickstarting a decade of national renewal.

[Martin Vickers]

The Secretary of State has tried to paint a glowing picture of what is happening, but I can tell him that in northern Lincolnshire there are growing concerns. There have been a number of business failures in the last few weeks in the Grimsby and Immingham areas, and he will be aware of the threat to hundreds of jobs at the Prax oil refinery. All that makes it even more important that the Scunthorpe steelworks has a long-term future. Can he update the House on the state of things at Scunthorpe?

[Jonathan Reynolds]

I am always keen to update the hon. Member and colleagues on the situation with British Steel. We have cancelled the redundancy consultation and removed the immediate risk to 2,700 jobs. We have taken on new apprentices and invested significantly in improving health and safety on the site. We have provided significant working capital—that does not take into account yet the future revenue that will come. I am sure he will have been pleased to see that Network Rail has awarded British Steel a contract worth £500 million. We will continue to ensure that there is a long-term future for British Steel, and we will keep the House and himself updated to that effect.

[Callum Anderson (Buckingham and Bletchley) (Lab)]

T2. The Government’s £500 million investment to support under-represented entrepreneurs was hugely welcomed by business leaders in my constituency, but access to capital is only part of the challenge. Many still face entrenched barriers around networks, mentoring and market access. Will the Minister set out the steps that the Government are taking to ensure that that investment is complemented by wider reforms to break down any structural obstacles to scaling businesses in Milton Keynes and Buckinghamshire?

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[Andrew Griffith (Arundel and South Downs) (Con)]

May I start by paying tribute to Norman Tebbit? He was a former Secretary of State for Trade and Industry and a great reformer who did a great deal to unleash growth in this country.

The only thing growing under this Government are the unemployment queues. Today, the Office for National Statistics revealed that the number of payrolled employees has fallen by 180,000 over the last year and 40,000 in the last month alone. Unemployment has been higher in every month since the Chancellor has been in office. In the last hour, we have heard news of another 500 job losses at Jaguar Land Rover. This is a great country with great people. When the Secretary of State talks to businesses, what reason do they give to him for unemployment rising?

[Jonathan Reynolds]

It is always nice to hear from the shadow Secretary of State. First, as he knows, the Office for National Statistics workforce survey shows that the overall number of jobs is higher after a year of this Government than it would have been if the Conservatives had remained in government—there are 380,000 additional jobs. He mentioned payroll jobs. Of course, they are important; they are one key factor, as is wages, which, as he knows, have risen faster in the first 10 months of this Government than they did in the first 10 years of the previous Government. Our productivity figures have also risen, and of course, we closely monitor the impacts of technology.

The shadow Secretary of State asked what businesses say to me. They say that this Government have brought stability after the mini-Budget disaster, which he was a key part of. They say that we have brought openness to the world and are navigating a difficult trading environment better than anyone else, and they recognise that our pro-business, pro-growth measures are delivering. There was nothing like the list I just gave of problems after 14 years of the previous Government.

[Andrew Griffith]

That answer was complacent and unsympathetic. It is the most vulnerable—those looking for their first shot, their first chance—who pay the price of unemployment.

Let us start again. Last night in the other place, the unemployment Bill was improved with sensible amendments to probation periods, a definition of seasonal workers that protects hospitality and agriculture, and provision for a consultation about the impact on the smallest businesses. Those measures have been proposed by employers, and by independent business groups such as the Confederation of British Industry, Make UK and the Federation of Small Businesses, who say that the Bill in its current form is deeply damaging. If the Secretary of State will not shelve the Bill entirely, will he at least commit to accepting those entirely reasonable amendments?

[Jonathan Reynolds]

The shadow Secretary of State talks about vulnerable people. Which Government left one in eight young people not in education, employment or training, while net immigration hit 1 million? It was absolutely shameful, and we will take no lessons from Conservative Members. He talks about tackling barriers; who gave us the highest industrial energy prices in the developed world? The Conservative party. Who is dealing with that? Who has put millions into skills and training, finance, and the tools that local areas need? Those are the things that businesses want.

The shadow Secretary of State also talks about the Employment Rights Bill. I regret the Conservatives’ knee-jerk ideological opposition to it; they could have been pragmatic. The Bill was a manifesto commitment, and we will deliver our manifesto commitments in full. There are issues on which we have to get the balance right, such as probation periods and the future monitoring of zero-hours contracts, and the commitment is of course real. Pragmatic engagement would have been a more constructive way forward than this knee-jerk ideological opposition.

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

The Business and Trade Committee’s inquiry on small business is still open for evidence from Members from across the House. On Tuesday, we took evidence from the chief executive of Ofgem, who made it perfectly clear that a complete collapse of regulation in the years after covid led to thousands of businesses across our country paying higher energy bills than they needed to. Can the Secretary of State assure the House that the small business strategy, when published, will contain a strategy for bearing down on the energy rip-off that is challenging small businesses across our country?

[Jonathan Reynolds]

I am always grateful to the Chair of the Select Committee for his helpful and pragmatic work and engagement. I recognise the issue that he has highlighted. A lot of small businesses were locked into uncompetitive contracts after covid, and the legacy of that has been very difficult. Of course, we will always look at measures to address that. Fundamentally, we must break the link that means that gas sets the price of electricity in the UK. There are no shortcuts to that; we have to get enough clean energy on to the system to make that possible, which is exactly what the Government are doing.

[John Glen (Salisbury) (Con)]

T3. On Monday, Tina McKenzie, the policy chair of the Federation of Small Businesses, said: “For the first time in the history of the Small Business Index more small businesses are predicting they will shrink than expand, meaning that as a country we are potentially facing a very dangerous situation.” I have listened carefully to what the Economic Secretary to the Treasury has said about the concierge service, which I welcome, and have seen the Leeds reforms this week, much of which I welcome. However, will the Minister respond to that stark warning from a very credible source of information?

[Gregor Poynton (Livingston) (Lab)]

Does the Secretary of State agree that the UK Labour Government are getting on with the serious business of delivering an industrial strategy that will support jobs in my Livingston constituency? That is in sharp contrast to the failing SNP Government, who have no industrial strategy, no plan for workers, and no plan to support Scotland’s key sectors.

[Jonathan Reynolds]

I very much agree with my hon. Friend. Nationalism is fundamentally a creed based on grievance, rather than real solutions, and that stands in contrast to our approach. There are specific instances where we could deliver billions of pounds of investment to Scotland if there was a change in policy from the Scottish Government, be it on new nuclear in places where Scotland could benefit from small modular reactors, or on the recent decision to pull support for the Rolls-Royce-led plan for a welding centre for apprentices in the defence sector, which would enable them to support the maintenance of Royal Navy submarines. The SNP Government are actively making decisions that get in the way of that investment. If we cannot change their policy, let us change the Scottish Government.

[Josh Babarinde (Eastbourne) (LD)]

T4.  Eastbourne’s posties are legends, including Manuel, who covers my patch. Upstream issues in the Royal Mail, however, mean that constituents like Michaele are not receiving letters for medical appointments until after the appointment time has passed. Will the Minister meet me to discuss these appalling delays, and the urgent action that must be taken to ensure that our residents get their post on time?

[Dame Chi Onwurah (Newcastle upon Tyne Central and West) (Lab)]

On Friday, the Select Committee on Science, Innovation and Technology published its report on social media algorithms, following the Southport riots. Indeed, there is a Select Committee statement on the report this afternoon. Stakeholders have expressed concern that ongoing trade negotiations with the United States might prevent the Government from responding to the report’s recommendations, holding social media companies to account and keeping the public safe online. Can the Minister reassure us that that is not the case?

[Jonathan Reynolds]

I can reassure my hon. Friend and all colleagues that those decisions will always be in the domain of this Government and this Parliament in the UK. There has been a lot of speculation, during the trade negotiations, about what may or may not be involved, but we have shown that we deliver on jobs, goods and services, and that is the basis of sound trade negotiations.

[Ben Maguire (North Cornwall) (LD)]

T6. My constituents, Mr and Mrs Greathead, supply specialist industrial products to businesses across the UK and Europe. Since Brexit, they have faced many extra layers of difficulty, delays and costs, and they are in the middle of a three-year battle with His Majesty’s Revenue and Customs to ensure that correct tariffs are charged. Will the Minister please look into the barriers that my constituents face when trading with Europe, and ensure that excessive red tape does not hold them back?

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[Ben Goldsborough (South Norfolk) (Lab)]

The over 1,000 employees at the Lotus plant in South Norfolk and Norwich North are the pride of our constituencies, and I thank the Secretary of State for his support in recent weeks. May I ask for a meeting with him and my hon. Friend the Member for Norwich North (Alice Macdonald), so that we can talk about our discussions with local employees?

[Jonathan Reynolds]

I can absolutely guarantee my hon. Friend that we will have that meeting. I appreciate the work that we have been able to do together, reacting to the media reports that initially surfaced. There is some clarity from the company, but not the full degree of clarity that we need. I will make sure that we get that meeting set up for him and his colleagues.

[Bobby Dean (Carshalton and Wallington) (LD)]

We have just had our fifth consecutive month of job losses announced, and research shows that as many as 17% of companies are considering redundancies. What is the Government’s analysis of why this is happening?