Oral Answers to Questions

Nusrat Ghani Excerpts

Thursday 15th October 2026 Commons Chamber

[Jonathan Reynolds]

Obviously, the immediate activity is supporting the affected employees throughout the consultation period. My hon. Friend will know that the use of the powers of Government—the powers of the state —to make sites available quickly for inward investment to the UK has always been a priority of mine. He is right to say that the National Wealth Fund has already made a nominal allocation to Grangemouth. Other programmes in the industrial strategy, such as the strategic sites accelerator, are all about trying to improve the pace at which we can take advantage of the investment opportunities the UK is presented with. I promise him that I will remain in close consultation with him, and of course with the Secretary of State for Energy and Net Zero.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the acting shadow Secretary of State.

[Julia Lopez (Hornchurch and Upminster) (Con)]

It is British Beauty Week—I can see you have been celebrating, Madam Deputy Speaker, and I am sure the Secretary of State has been, too—but it is tough out there for our salons. The industry lost one in five employees last year, which is the largest loss of any job type in the UK. Many will have been young people starting their careers in the industry, and few salons can afford to employ and train them because they are getting hammered by the jobs tax, soaring business rates and higher utility bills. What hope is the Prime Minister offering them?

[Jonathan Reynolds]

I notice the hon. Lady did not go first on British Beauty Week to me, but to you, Madam Deputy Speaker, and that is fair. British Beauty Week is an important moment, not least to celebrate the contribution of the sector and the, I believe, over 5,000 new apprentices starting in the sector in every corner of the UK this year.

The hon. Lady in effect asks what the big economic story in the UK is, and I would say that the hope comes from the fact that, despite the challenges that exist in the global economy around the world, the economy under this Government is clearly performing more strongly than it did for 14 years under the Tories. My proof points for that are that wages are rising faster than prices and, crucially, that GDP is rising not just overall, but per head, as opposed to the modest increases under the Conservatives, which were really from population increases and large-scale immigration. An economy performing more strongly is in the interests of every business. On the opportunities for young people, there are the tax and fiscal incentives I have mentioned, with the further agenda coming through the Milburn review.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the Liberal Democrat spokesperson.

[Sarah Olney (Richmond Park) (LD)]

Youth unemployment stands at 15%, and in London that figure is 25%, while 700,000 graduates are out of work. Retail and hospitality are cornerstones of the everyday economy, providing vital employment, driving local growth and creating thriving town centres. However, average employment costs have increased by 11% since Labour took office, which disproportionately affects sectors that traditionally offer entry level jobs. Policy decisions taken by this Government are making it impossibly hard for businesses to provide young people with their first foot on the career ladder. Will the Secretary of State acknowledge the damage being done to young people, and will Ministers ensure that, as they implement secondary legislation under the Employment Rights Act 2025, they balance the rights of employees fairly with the needs of businesses to provide jobs for young people?

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[Several hon. Members rose—]

[Madam Deputy Speaker (Ms Nusrat Ghani)]

Order. Back-Bench MPs can only come in if the question is about Jodrell Bank observatory. [Interruption.] I call the shadow Minister.

[Peter Fortune (Bromley and Biggin Hill) (Con)]

Thank you, Madam Deputy Speaker—the renationalisation of the railways is not working. [Laughter.]

The Drayson partitions exist to ensure that costs which the UK must meet and cannot change, such as international subscriptions that give us access to scientific facilities, are treated separately to costs that we have control over, such as grants funding. With the Science and Technology Facilities Council given a flat cash settlement, but with international subscriptions rising with inflation, the STFC now has less money to spend on actual research, leading to world-leading scientific research being dropped and to the closure of facilities such as Jodrell Bank. Can I ask the Secretary of State who made the decision to disregard the Drayson partitions?

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[Chris McDonald]

I agree with the hon. Member’s point about the need for Britain’s discoveries to be scaled at home rather than abroad. I am taking an end-to-end approach on that, starting with scientific discovery and hopefully ending with large companies listed on the London stock exchange, supporting businesses throughout that process. UKRI and Innovate UK are doing great work in that area, supported by the increased role of the British Business Bank.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the Chair of the Science, Innovation and Technology Committee.

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

I welcome the Minister to his new role as well as this Government’s emphasis on driving growth through innovation in every region of our country, as recommended by my Committee’s recent report, “Flying Blind”. It was called that because it identified a lack of data and information about the factors that drive growth and how to measure success in our regions and across clusters. The report called for a dashboard. Will the Minister tell me what progress has been made on that dashboard, and has he looked at the Cambridge x Manchester Partnership baseline report, which identified a number of indicators, including company stock, funded count, and disclosed funding by employee band?

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[Jonathan Reynolds]

Everything the hon. Gentleman has said sounds hugely attractive to me. He has clearly already engaged with Government to some degree, but I will follow up on his question and see what we can do to support his local area.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the shadow Minister.

[Mark Garnier (Wyre Forest) (Con)]

May I start by thanking the Secretary of State for his very measured and intelligent thoughts about the GDP growth rate? I lament that some others in his Government seem almost complacent about the International Monetary Fund’s increasing GDP growth expectations from 1% to just 1.3%, putting us second in the G7. Does that not show a certain lack of reality in the Government? What we should be looking for is GDP growth of more like 2.5%. The G20 is averaging 3.1%, and we are 14th in the G20. Does the Secretary of State recognise that over-regulating, over-taxing and charging too much for energy is holding back our great entrepreneurs and businesses, who could be delivering the GDP growth that this country really needs?

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[The Minister for the Future of Work (Kate Dearden)]

I know all too well the devastating impact that rogue traders can have on constituents, having had similar discussions in my own constituency and with many colleagues across the House too. That is why my Department supported the independent furniture and home improvement ombudsman’s new approved code and payment protection scheme, backed by independent dispute resolution, to help hard-working families identify trusted traders and ensure that people can spend their money with greater confidence and security.

We remain committed to supporting the Competition and Markets Authority and local trading standards in their ability to impose penalties via the courts. This Labour Government are delivering everyday fixes to protect families and give them room to breathe.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

Order. We need to move a bit faster, so questions and answers must be shorter.

[Bill Esterson]

My constituent Joanne paid £11,000 for a new kitchen. Her house was left in a terrible state and she was unable to get the builder to return to rectify the substandard work. It also turned out that he was associated with 21 other companies mostly in the building trade, many of which have been dissolved. The Minister mentioned quite rightly the new code for the home improvement sector, which will give confidence to consumers and support to reputable traders. Is more not needed to go after the cowboy builders to ensure that constituents such as Joanne can get the remedy that they so need?

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[Kate Dearden]

My heart sank when I heard the news, and I pay tribute to my hon. Friend, not only for raising this today, but for all his work in the sector on behalf of his constituents since first coming to this House. I spoke with the chief executive of Carlsberg Britvic yesterday, and I know that the proposal to close the brewery has not been made lightly. He reassured me that the team at Burton have shown exceptional commitment, skill and professionalism, and have made an enormous contribution to Burton upon Trent’s proud brewing tradition. This proposal is not a reflection on them or the quality of their work. Consumer tastes are constantly evolving, and this proposal reflects the particular long-term challenges relating to cask ale, which I have spoken to my hon. Friend about, and on which I will continue to work with him closely. I know that this will be a concerning time for workers at Marston’s. We recognise the impact that these proposals may have on those workers, their families and the local community as the company begins consulting, and I look forward to discussing this further with him.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the shadow Minister.

[Bradley Thomas (Bromsgrove) (Con)]

The hospitality sector provides around 300,000 jobs for young people every year and contributes £96 billion annually to the economy. Despite that, the Government continue to hammer it with a series of blows, to the extent that the sector has the highest effective tax rate of any sector in the economy, paying the equivalent of 82p in taxes for every £1 of pre-tax profit made. That eclipses the 50p average rate across our economy’s 11 main sectors. What steps are the Government taking to tangibly lower business costs, so that hospitality businesses can employ more young people?

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[Alex McIntyre (Gloucester) (Lab)]

T5. Yesterday, I met the chief executive of Ofcom with colleagues from this House to discuss our frustration about the lack of effectiveness of its enforcement action in improving Royal Mail services in my constituency. In Gloucester, we are getting post every couple of weeks at best. People are missing hospital appointments and important legal deadlines, and quite frankly, they are wondering whether they should put their Christmas cards in the post this week, so that they might arrive in time for 25 December. How can we ensure that Ofcom has the power to effectively enforce the universal service obligation, so that Royal Mail services actually improve in my constituency?

[Madam Deputy Speaker (Ms Nusrat Ghani)]

Questions should be really on point.

[The Minister for the Future of Work (Kate Dearden)]

I thank my hon. Friend and Labour colleagues for their work on this. I agree that the Royal Mail service has been unacceptable for too long, and that the pace of improvement must increase, and my constituents share exactly the same frustrations. The Government expect Ofcom to use its full range of existing tools to secure better outcomes for postal users, and I will continue to work closely with it and with colleagues in the House to deliver that.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the shadow Secretary of State.

[Julia Lopez (Hornchurch and Upminster) (Con)]

The Secretary of State confessed last month that business leaders have urged him not to return to the political uncertainty around our relationship with the EU. The Prime Minister has now completely ignored him, and them, and says that the UK could pursue a customs union or a single market, or go all the way back in. He clearly was not in the 2017 to 2019 Parliament; he has barely been in this one. Will the Secretary of State tell businesses what the Prime Minister’s preferred option is?

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[Jonathan Reynolds]

I recognise the specific issues in Brighton, and what the closure of R-Bar and Charles Street Tap will mean for Brighton’s LGBTQ+ community. The Government recognise the needs of hospitality. We have talked in this Question Time about lower business rates, and about the doubling of the employment allowance. Of course I want to work with my hon. Friend, and I am grateful to him for raising this issue directly with me. No one ever turns down a visit to Brighton, so we will see if we can get that sorted.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the Liberal Democrat spokesperson.

[Sarah Olney (Richmond Park) (LD)]

On Monday, the Prime Minister joined the Liberal Democrats in acknowledging that refusing to countenance closer UK relations with the EU would be a “dereliction of duty”, yet the Government remain committed to their red lines. Joining the single market and a new UK-EU customs union could boost UK GDP by at least 3.6% and result in around £27 billion a year in extra tax revenue. Does the Secretary of State agree that refusing to cross those red lines, while knowing the damage that Brexit continues to cause businesses up and down the country, is in fact a dereliction of duty?

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[Jonathan Reynolds]

Those are obviously dramatic figures —I assume that they have happened through revaluation. I will endeavour to get the hon. Lady in contact perhaps with the Treasury, rather than this Department, to support her constituency.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the Chair of the Select Committee.

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

On Tuesday, the head of MI5 warned that AI could help terrorists to develop bioweapons. In the Select Committee, OpenAI and Anthropic told us that statutory AI safety controls are now essential. We are blessed to have the AI Security Institute in this country, but it is no longer enough. Will Ministers confirm that we will have Government amendments on Report of the Cyber Security and Resilience (Network and Information Systems) Bill to ensure that we have statutory AI protections to keep this country safe?