British Industrial Competitiveness Scheme

Justin Madders Excerpts

Thursday 16th April 2026 Commons Chamber

[Peter Kyle]

I could have listened to the hon. Lady for much longer, because she is listing important areas across the sector. I am very aware of the challenges and opportunities in an economy that is full of great enterprise and a lot of highly profitable businesses doing great things with great entrepreneurs. Listening to her, we would think that the economy was not full of people and businesses that are thriving. She only focuses on the challenges.

Let me be clear on how BICS happened. It came about through consultation with the very businesses that the hon. Lady is asking us to listen to. They have been part of designing the system. We will release and implement a targeted scheme that will have maximum benefit. We will announce over the summer an eligibility checker, so that businesses can see their eligibility for the scheme. Of course, as we move forward, we will make payments for costs that may have been incurred this year.

Let me be really clear, however, about how those businesses are working. Most of the businesses—I include the business that was on the Radio 4 “Today” programme this morning; Sharon from Tees Components up in Teesside was on the programme—have entered into a contract with fixed prices for the coming year. Most companies in the categories that we are targeting, which have manufacturing processes in which electricity is a high-component cost, are either hedging, or are in contracts, so that they have some stability into the future. We have designed a scheme that takes that into account, will be there when they need it, and supplies support for costs that they would have had this year.

On CO₂ and the issues that are in the news, six months ago, within days of becoming Secretary of State, I mothballed Ensus up in Teesside—a fantastic company. I have had to un-mothball it, and I did so in the first couple of days of the strikes in Iran to ensure resilience in key parts of our economy. That was leaked; we do not normally comment on leaks, but that is out there now. These are the things that I am doing. I am being bold and creative, and am acting in the interests of the whole of society and the economy to make sure that we have the resilience to carry on doing business, and come out of this with growth in our economy.

[Justin Madders (Ellesmere Port and Bromborough) (Lab)]

We will not prosper as a nation without a lot of support for the manufacturing sector—vital for our security and our resilience—so I welcome today’s statement. I notice with some irony that the fertiliser sector is included. A producer in my constituency closed under the previous Government, and as the Secretary of State has already referred to, several hundred million pounds have already been spent correcting the failure to foresee the risks of such a move.

It is good to see that a number of sectors in my constituency are covered by the scheme, including automotive. The Secretary of State will be aware that the automotive sector faces multifaceted issues, not least on the supply side, but also to do with competition and European proposals. Will he say a little bit more about what else he can do to support the wider challenges facing automotive and manufacturing more generally?

[Peter Kyle]

I am grateful to my hon. Friend for his work when he was in my Department, upon which I seek to continue. He is right to point to the closure of the fertiliser plant in, I believe, 2023. Those are the sorts of things that have stripped out resilience from our economy and society and which I have sought to rebuild in turbulent times. The automotive sector will qualify for the BIC scheme and other high energy- intensive industries outside automotive will also benefit from the supercharger before it does. I regularly meet automotive industry figures, and the Department is deeply engaged with the sector. He will know some of the outcomes of those conversations and that it is a sector that has this Government and me on its side.