Industry and Exports (Financial Assistance) Bill

Judith Cummins Excerpts

2nd reading
Monday 15th December 2025 Commons Chamber

[Chris Bryant]

Well, I hope that I can find the right hon. Gentleman’s sweet spot, as he is such a dedicated follower of fashion. He has made a very fair point. This is the classic problem for Governments when it comes to any industrial support, whether it is a loan or a grant: if the business is so successful, why does it need additional financial support? That is why, because of the structure that we have created through those two Acts, UK Export Finance actually makes money for the British Government. It is based on loans being made at normal rates, and sometimes it manages to lever in retail finance as well, which is a particularly important part of its work. However, when we provide a grant we have to ensure that it is intended to achieve a set series of aims. For instance, the £128 million—I think—that has been given to BioNTech is specifically designed to develop two new R&D hubs producing 400 new highly paid jobs in the life sciences sector, and also, incidentally, to tackle skin conditions and melanoma, which are among the subjects on which it is working.

The right hon. Gentleman is right to say that a difficult moment often arises, but one of the complaints I have received from quite a few sectors is that the UK can be a bit slow about deciding when we are going to support someone, and I want to be able to speed up that process as much as possible. As I said to the hon. Member for Strangford (Jim Shannon) and the hon. and learned Member for North Antrim (Jim Allister), I think the key to much of what we are trying to do involves supporting SMEs. Of course there will be massive contracts, such as the $3.5 billion expression of interest that we have allowed for the building of the new Dubai airport so that British businesses will be able to put in for some of the ensuing tenders—perhaps for hangar doors, the building of additional facilities, maintenance services or architectural designs. However, 88% of what we are talking about in respect of UK Export Finance is for SMEs.

I will make two more points, and then I will come to a close. Through existing provisions in the Industrial Development Act, the British Business Bank’s northern powerhouse investment fund II has directly invested £115 million in more than 300 small businesses. Similarly, in the midlands, the midlands engine investment fund II has launched a £400 million fund to drive sustainable economic growth by supporting innovation and creating local opportunity for new and growing businesses.

I am getting a feeling from the Chamber that everyone will be supporting the Bill. I think that, broadly speaking, it has cross-party support, and I think it important that we get it on the statute book soon enough to be able to provide that support for the businesses in the UK in the next financial year, so that we can prosper, grow the economy and protect jobs.

[Madam Deputy Speaker (Judith Cummins)]

I call the shadow Minister.

--- Later in debate ---

[Mr Calvin Bailey (Leyton and Wanstead) (Lab)]

This is an important Bill, not only for the agenda of increasing trade and therefore economic growth, but for our entire foreign policy in this chaotic and insecure international environment. My work over the past year as trade envoy to southern Africa has shown me just how important joined-up trade finance is to our diplomacy and to securing UK interests around the world, particularly, as my hon. Friend the Member for Middlesbrough South and East Cleveland (Luke Myer) said, in the steel industry. In many contexts, but particularly in Africa, economic diplomacy that centres trade and investment is what our partners want from us, and this is reflected in the new UK-Africa approach that was launched earlier today. Unless we have the means to commit financially and an anchor to bring together UK businesses and investors, there will be many serious challenges that we cannot overcome.

We need to build partnerships on critical minerals that protect our economy from the weaponisation of supply chains, particularly by China, and to implement the new critical minerals strategy. We need to create deeper economic ties with fast-growing countries and regions, including many of our partners in Africa, because we have been losing out on serious growth opportunities for the lack of a focused, strategic approach over the past decade and a half. We need to show our partners that we have a modern approach to international development that recognises and works with their own strategies and ambitions and therefore puts economic transformation at its heart. This requires us to be much more joined up across Government, and to do more with the resources available.

I want to ask the Minister how the changes in the Bill will complement UK Export Finance’s update of its own strategy. How will we enable organisations with a very long-term focus, including not only UKEF but British International Investment, to be more nimble and more ambitious in working together with our diplomats? As the Minister knows, I firmly believe that what our partners want from the UK is the exercise of cohering power: not providing the whole solution to our shared challenges, but being more willing to step forward and play a leading role in building that solution. Within this, our institutions could provide a bigger economic impact and secure far more UK influence if they worked more in collaboration on larger projects such as infrastructure, trade corridors, energy grid developments and critical minerals processing. This includes working together with close partner institutions, such as those of Japan and Canada, as well as with our EU partners.

The Minister will have read my views on these matters. It is clear that the UK is viewed as a cohering partner in sub-Saharan Africa, and I hope that UKEF being front and centre of that cohering international co-operation will help to address Chinese influence in the region. How does he think we can more effectively support UKEF and others to do that, given that it may require a more nimble and flexible approach than the UK institutions are used to? Today’s Africa approach rightly highlights the UK’s support for the African continental free trade area, but promoting intra-Africa trade and the critical agenda to move up the value chain often requires us to look across borders and apply a regional lens when we assess which projects to support. Can the Minister tell us how UKEF will do this?

Finally, I note that resource constraints are inevitably a threat to the implementation of the Africa approach, the critical minerals strategy and trade growth more widely. I have seen some innovative approaches across the continent that we can learn lessons from, including greater use of chambers of commerce to ensure that country and regional expertise on UK trade and investment relationships is preserved. I want to pour praise on the ambassadors in Mozambique, Zambia, Gabon, the Democratic Republic of the Congo and Angola, who have all demonstrated exceptional approaches to trade creation and innovation. I wish to ensure that they have the Minister’s support in the retention of those posts and our diplomatic network. Will the Minister set out how UKEF and our other key public institutions will work seamlessly across all mechanisms of government to ensure that we get the greatest value for public money, even when resources are tight?

Expanded trade finance through UKEF is an essential tool for putting these strategies into practice and making our country and our partners more prosperous and secure. The Bill takes welcome steps in fixing the framework governing UKEF and making that progress possible. I thank the Minister and his Government colleagues for their engagement with me on these issues over the past months, and I look forward to playing my part in driving this shared agenda forward.

[Madam Deputy Speaker (Judith Cummins)]

To wind up, with the leave of the House, I call the shadow Minister.

[Dame Harriett Baldwin]

I would like to pick up on some of the points made in today’s interesting debate and to reiterate that, as Conservatives, we have always stood shoulder to shoulder with Britain’s businesses and great exporters. In my opening remarks, I asked some questions of the Minister, and I look forward to hearing his replies. I thank my hon. Friend the Member for Chelsea and Fulham (Ben Coleman) and the hon. Member for Leyton and Wanstead (Mr Bailey) for all the work they are doing as trade envoys to the west and south of Africa. I remember when I was Africa Minister thinking how enormous the potential is for us to do more business with these nations, so it is interesting to hear how that work is moving forward.

A number of Members highlighted the excellent export work done by small and medium-sized businesses, and we heard some excellent examples from the north-east in particular. We also heard the case made by the hon. Member for Maidenhead (Mr Reynolds) for the importance of small and medium-sized businesses. I reiterate to the Minister, so that he is aware, the importance for the House of this money not just getting swallowed up by some of the larger household names, such as Rolls-Royce, Airbus and BAE Systems, but it giving that fighting chance to some of the smaller exporters.

I want to pick up on the point that the hon. Member for Maidenhead made about the customs union. The House will recognise how much work was put in to getting landmark trade agreements with 70 countries that give UK exporters preferential access to markets worth trillions of pounds. It is work that the Minister continues energetically around the world, and he will no doubt in his closing remarks point to the India and US free trade deals, which are important pieces of work that he has been involved in. Those free trade agreements that the UK has managed to negotiate would not be possible if we were in the European Union customs union. I challenge the hon. Member to point to where the research is on this fabled £25 billion.

In conclusion, the words of Ronald Reagan keep popping into my head during debates in this Parliament. He famously said:

“If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.”

I hope to hear from the Minister at the Dispatch Box how he will ensure that this additional money is used in the way that I said in my opening remarks, where it crowds in private sector investment and is there as a last resort to get a deal over the line, rather than crowding out private sector funding that would have been there were it not for the Government funds. Without further ado, having got my favourite Reagan quote about this Government on the record, I can assure the House that we will not be opposing the Bill.

[Madam Deputy Speaker (Judith Cummins)]

With the leave of the House, I call the Minister.