Oral Answers to Questions

Peter Kyle Excerpts

Thursday 21st May 2026 Commons Chamber

[Gurinder Singh Josan (Smethwick) (Lab)]

1. What assessment he has made of the potential merits of introducing digital ID for businesses.

[The Secretary of State for Business and Trade (Peter Kyle)]

It is going to be a busy day for the Department for Business and Trade team. We are going to be spending a lot of time together today, Mr Speaker, and I very much look forward to it.

We are improving how businesses find, log into and use digital Government services. Better digital services—increasingly joined-up services—can reduce administrative burdens and save businesses time and money. That is why we have pledged to reduce the administrative burdens on business by 25%, and digital will play a key role in that.

[Gurinder Singh Josan]

Small businesses are the backbone of our economy, yet research shows that the average small business cannot start its real work until 2.36 pm on a Wednesday because of the time lost to administrative tasks. My own experience is that business owners need to engage regularly with various departments and agencies for all manner of reasons, and proving their identity can be a time-consuming task, so will the Secretary of State consider introducing a unique business passport—effectively, a unique digital ID for businesses—to cut administrative burdens and free up small businesses to deliver growth?

[Peter Kyle]

My hon. Friend and I share a zeal for using digital to transform the relationship between Government and those who use services. When I was the Secretary of State for Science, Innovation and Technology, I was very proud to work with the Government Digital Service team and see how they are transforming the ability of individuals to interact with Government. We need to have the same zeal for transforming how businesses interact with Government, and I can assure him that a programme of work is going on with my Department to make sure that that is the case.

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[Mrs Elsie Blundell (Heywood and Middleton North) (Lab)]

3. What recent discussions he has had with Royal Mail on the adequacy of its service levels in Greater Manchester.

[The Secretary of State for Business and Trade (Peter Kyle)]

The Minister responsible for small business and economic transformation, the Under-Secretary of State for Business and Trade my hon. Friend the Member for East Renfrewshire (Blair McDougall), met Royal Mail’s chief executive on 12 May to discuss its service improvement plan. I know that my hon. Friend has been campaigning on these issues in her constituency vigorously and that has been heard loud and clear. Royal Mail has told my Department that Middleton delivery office in my hon. Friend’s constituency is fully staffed and delivers to most addresses six days a week. I know that she will be scrutinising that and might well have a bit more to say on that now.

[Mrs Blundell]

Last week, I held a meeting at the fantastic Burnside community centre in Langley with representatives from Royal Mail and constituents, including those who have had to deal with a substandard postal service resulting in crucial correspondence arriving weeks late, if at all. To many people in Heywood and Middleton North, that is a direct result of a national asset being sold off to a private company focused on profit rather than quality of service. If that level of service continues, what further options is the Secretary of State considering to hold Royal Mail to account, and where necessary will the Government step in and force the changes that my constituents need to see?

[Peter Kyle]

I said that my hon. Friend was a great advocate for her residents on this issue; she is proving so once again. I can reassure her that the Government have secured a commitment from Royal Mail’s owners to prevent the payment of dividends until service levels improve. That will be a tangible impact on the business unless service levels improve. I have also been involved in discussions with Royal Mail’s owners and the Communication Workers Union to get a deal that can start work on the universal service offering and modernisation reform package for the company, as well as one that tackles pay equalisation. They have reached a deal and it is now out to CWU members. I hope that that will be the foundation for real improvement into the long term. It shows this Government’s active industrial strategy that get things done.

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[Tessa Munt (Wells and Mendip Hills) (LD)]

7. What steps his Department is taking to support small and microbusinesses in rural areas.

[The Secretary of State for Business and Trade (Peter Kyle)]

Ensuring that business support takes account of rural needs is incredibly important for this Government. Around one in six people live in rural areas in England, with over 520,000 businesses contributing £259 billion to the English economy.

[Tessa Munt]

My constituent Jason runs The Cider Barn in the village of Draycott just outside Cheddar, a fantastic local venue that hosts live music and serves, unsurprisingly, really good local cider and ales. Jason was rocked by this year’s massive increase in business rates, which have jumped from £100 a month to £600 a month. I should not have to explain that that meant a significant rise in his operating costs. This kind of shock makes it so hard for micro and small businesses to survive, let alone to thrive. Given how important The Cider Barn is to the local community, what can the Minister say—and, importantly, do—to assure small businesses like Jason’s that they will be supported by this Government?

[Peter Kyle]

The fact that the hon. Lady’s constituent works in the hospitality sector and is located in a rural area means that he requires multiple types of support from this Government, which he is getting. We have permanently lowered the business rates multiplier for eligible retail, hospitality and leisure properties. That is worth nearly £1 billion and benefits over 750,000 businesses. I imagine that his business will fall within the definition of a small business. Just this week, we have introduced legislation to tackle late payments for small businesses, which will inject another £11 billion into the economy. This Government are on the side of businesses, whether they are in urban or rural areas and whether they are large or small.

[Mr Speaker]

I call Perran Moon.

[Peter Kyle]

My hon. Friend is describing businesses that are the lifeblood of the British economy, and the innovation that flows from them is vital. The Department for Environment, Food and Rural Affairs’ rural taskforce is taking a strategic view of the challenges faced by businesses in rural areas, and I imagine that the one that he mentions will be in scope. The business growth service also includes growth hubs across the UK, which are supporting businesses in rural areas so that they can get the growth they need into their businesses.

[Sir Julian Smith (Skipton and Ripon) (Con)]

8. When he plans to publish his Department’s review of and consultation on the opt-out collective actions regime.

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[Jerome Mayhew (Broadland and Fakenham) (Con)]

T2. If he will make a statement on his departmental responsibilities.

[The Secretary of State for Business and Trade (Peter Kyle)]

I am grateful to the hon. Gentleman for not ruining my moment to shine.

I told the House that I would be an activist, interventionist champion for business. I am very pleased to say that later today, the Chancellor will announce funding for two of our foundational sectors: ceramics and chemicals. She will set out more detail to the House shortly, but I can say that we are working with industry and experts to provide the targeted intervention that those sectors need. Today’s business tells the story: this Government stand with British business when it comes to creating the resilient and growing economy that this country deserves.

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

First, I congratulate the Government on securing the Gulf Co-operation Council deal. Success has many authors, and Members on both sides of the House have been part of these negotiations as Ministers, but a win is a win. These are—[Interruption.] These are our historical friends and allies, and this is part of a growth agenda.

Summer is approaching and young people are graduating. The Office for National Statistics reported this week that, as a direct result of this Government’s choices, one in six young people is looking for a job, but cannot find one. Sectors like retail and hospitality are shedding jobs by the thousands. Will the Secretary of State finally accept that, well-intentioned or otherwise, the Government have got it wrong?

[Peter Kyle]

It speaks for itself when the Opposition try to take credit for the Government’s achievements. It shows just how good this Government actually are. However, I am grateful for the hon. Member’s warm words about the GCC deal. A lot of work went into it, but of course when we came into office, we were practically on the starting line; we were so close to it at that moment.

I will be really up front about youth unemployment. This issue faces most communities in our country, and we should have much more cross-party support on it. In the interests of offering an olive branch, let me say that as someone who had a challenging pathway through education into employment, I recognise the issue. However, the Opposition must admit that, in the three years before they left office, youth unemployment went up by 250,000. Yes, we will work together, but it does—

[Mr Speaker]

Order. Secretary of State, my words apply to you as well as to Back Benchers, because I am trying to help your Back Benchers get their questions in. We will now hear a very quick question from the shadow Secretary of State.

[Andrew Griffith]

I thank the Secretary of State for his answer. I hope he would agree, cross-party, with the Tony Blair Institute, which has said that the UK must restore “dynamism” to its labour market, rather than imposing restrictions such as the Employment Rights Act 2025. Could the Secretary of State, who is a good man, at least promise me that, if he gets to serve as Chancellor in a Government led by his friend, the right hon. Member for Ilford North (Wes Streeting), he will use that chance to change the Government’s approach?

[Peter Kyle]

Dynamism is increasing in our economy, and that is why we have so much growth—growth that the Conservatives failed to deliver in their 14 years. As for young people, we have the youth guarantee, which includes a six-month funded programme placement that provides a rich environment for kids who were put out of work—a lot of the time, by the Conservatives when they were in government. It gets kids back into work, and does so sustainably.

[Imran Hussain (Bradford East) (Lab)]

T5.  Bradford is a proud multicultural city, and we celebrate all the good that diversity brings. We speak over 100 languages, and I am sure you will agree, Mr Speaker, that we have the best cuisine in the country. We hosted amazing events as the city of culture last year. We have one of the youngest populations in the country, and one of the highest business start-up rates. What further steps will this Government take to boost our economic growth, and provide support for our young people and, in particular, business start-ups?

[Peter Kyle]

Just last year, I was in my hon. Friend’s neck of the woods for the investment summit, unleashing further billions into his part of the country. I know that the automotive sector is incredibly important to him, and we are pledged to getting back to the level of automotive output we had before the Tories halved it. When we get back to that point, he will see a flourishing, booming industry, with the jobs that follow.

[Mr Speaker]

I call the Liberal Democrat spokesperson.

[Sarah Olney (Richmond Park) (LD)]

According to reports in both the Financial Times and The Times, the Government have asked supermarket retailers to reduce the price of essential food items, such as milk, bread and eggs. The chief executive officer of Marks & Spencer has described the proposals as “completely preposterous”. Can the Secretary of State confirm that instead of trying to impose price controls on private businesses, his Department will look to reduce the cost of Government-imposed burdens on retailers, such as business rates, national insurance contributions and energy costs?

[Peter Kyle]

There will be no price cap and there will be no price controls, but I am not going to apologise for throwing everything and the kitchen sink at the cost of living challenges that we inherited, along with an economy that was broken.

[Chris Webb (Blackpool South) (Lab)]

T6.  I was delighted recently to host the hospitality Minister, the Under-Secretary of State for Business and Trade, my hon. Friend the Member for Halifax (Kate Dearden), at the top of our iconic Blackpool tower, alongside our tourism CEO Kate Shane, to discuss the opportunities and challenges facing our visitor economy. Our tourism sector supports thousands of jobs, yet local small and medium-sized enterprises are being hit hard by rising costs and the pressure of a seasonal economy. But Blackpool comes to the Government not with problems alone, but with a clear credible plan. Does the Secretary of State agree that coastal towns require targeted economic support, and will he back our proposal to pilot a new tourism zone?

[Peter Kyle]

I am very grateful for my hon. Friend’s question. Yes, I can say that Little Layton in his constituency is one of the 379 communities across the UK that will receive Pride in Place funding, just one of the cross-departmental packages of support that his constituency will benefit from. We will not forget. We will keep on supporting him all the way.

[Sir Julian Smith (Skipton and Ripon) (Con)]

T3.   JB Springs in Skipton has been in touch on the issue of quotas. It imports steel and is worried about the cost of steel and the future of the company. Personally, I do not have an issue with many aspects of the Steel Industry (Nationalisation) Bill, but the quota issue is really causing problems. Is there a structure enabling colleagues to meet people from the Department, so that businesses can communicate their worries? Will the Minister keep an open mind about the quotas and review them in less than 12 months?

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[Mr Speaker]

Order. Please, come on! Tell me who you don’t want me to get in, because that is what happens when we do this.

[Peter Kyle]

My hon. Friend raises an incredibly important point. The UK Government have a support package for England, with £4.3 billion to protect ratepayers. The Barnett consequentials provide support for Scotland, but where the UK Government are supporting businesses, the SNP is choking off investment and risking jobs.

[Bradley Thomas (Bromsgrove) (Con)]

T8. The Government’s new steel tariff and quota regime, due to come in in a few weeks, means that many businesses face a cliff edge. One in my constituency recently got in touch to tell me that it faces either a slow death or a swift death, and that it faces calling in the administrators before Christmas. Will the Minister keep an open mind about extending the transitional period, and will he agree to meet me and a very small number of my constituents who will be affected?

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

The Committee is meeting steel makers later today and will supply the Government with its advice from that, but I want to raise the automotive sector. We are not going to double automotive production in the way the Secretary of State wants unless we fundamentally reform the zero emission vehicle mandate. Auto makers are subsidising sales by £5 billion a year. They are transferring money to state-subsidised players, such as BYD, and battery costs have not fallen. Will the Secretary of State bring forward a whole-market review and reform the ZEV mandate for good?

[Peter Kyle]

My right hon. Friend, as always, gives great voice to the automotive sector. I have listened closely to the voices of the sector in relation to the ZEV mandate—it is important that we do that. It is also important that, when setting such targets, we take into account consumer demand. That is something I am very aware of and having conversations about with colleagues across Government.

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[Adam Jogee (Newcastle-under-Lyme) (Lab)]

I am delighted that the Government have listened to my calls, and those of my neighbours in Stoke-on-Trent, to finally act to support the ceramics industry—calls so loud that my hon. Friend the Member for Stoke-on-Trent Central (Gareth Snell) has lost his voice. While we await the detail, will the Secretary of State come to North Staffordshire to meet the ceramics businesses that he and this Government are helping today?

[Peter Kyle]

I am grateful to my hon. Friend for his comments. The package that we are announcing today will be significant. I will not say any more, because the Chancellor will be making that announcement later. I can say, however, that the boldness of the package is a direct consequence of the voices that we have heard from MPs, including from my hon. Friend and others in Stoke—whether losing their voice or not. Those voices have been profoundly important to the scope, scale and boldness of what will be announced today.

[Wendy Chamberlain (North East Fife) (LD)]

Hospitality businesses in North East Fife support the Lib Dem call for a VAT cut for hospitality, but the Government do not seem to be moving on it. Will the Minister consult with businesses on a lower national insurance contribution band for part-time workers? Part-time opportunities are so important to hospitality and for getting younger people into work.

[Rachael Maskell (York Central) (Lab/Co-op)]

In October, Nestlé announced 16,000 job losses, including 450 in the UK. In the light of the significant impact that this will have in York, will the Secretary of State ensure that meaningful consultation happens with the trade unions, and will he meet them to save those jobs?

[Peter Kyle]

Yes, of course I will.

[Olly Glover (Didcot and Wantage) (LD)]

Small businesses in Didcot’s Broadway are struggling with energy and staff costs, business rates and a rising tax burden, and the older town centre would benefit from investment and rejuvenation. For areas, such as Didcot, that did not receive Pride in Place funding, what suggestions does the Secretary of State have for funding or other forms of support?

[Peter Kyle]

What businesses in Didcot and right across the country need is a fast-growing economy, and that is what we are delivering.

[Leigh Ingham (Stafford) (Lab)]

In my constituency we are seeing good growth in our large employers and a great skills pipeline coming through from our advanced technical college, but we need a little support for our SMEs. Will the Minister say what targeted support is available for SMEs in towns like Stafford?