Oral Answers to Questions

Sarah Jones Excerpts

Thursday 12th June 2025 Commons Chamber

[Kenneth Stevenson (Airdrie and Shotts) (Lab)]

15. What progress his Department has made on developing an industrial strategy.

[The Minister for Industry (Sarah Jones)]

The Department is making good progress developing our industrial strategy—a strategy that has been called for by industry for many years and opposed by the Conservatives for ideological reasons. We have launched our consultation, we have met industry and thousands of businesses across the land, and we are finalising our report, which we will be publishing shortly. The spending review announcements yesterday on investment will add to the business growth in the country that we all want to see.

[Alison Hume]

British bus manufacturer Alexander Dennis announced yesterday that it is consolidating its operations in the UK to its Scarborough facility, placing 400 jobs in Falkirk at risk. The company is warning about competitive imbalance, the increasing market share of Chinese bus manufacturers and an absence of incentives for British-built vehicles. How are the Government planning to support British bus manufacturers as part of our industrial strategy?

[Sarah Jones]

This is a challenging and difficult time for the workers and their families at Alexander Dennis, as well as for the local area. As Members would expect, I have engaged extensively with ADL’s senior executives alongside the Secretary of State for Scotland, the Department for Transport and the First Minister of Scotland to discuss what we can do to support. We wrote jointly to the company, offering to support it in any way we can. There are many issues that we tried to talk through with its representatives. Bus manufacturing sits with the Department for Transport, so it is taking the lead, but we are working together to do what we can.

[Kenneth Stevenson]

Do the Secretary of State and the Minister agree that the industrial towns and villages that make up Lanarkshire must be central to any modern industrial strategy? Will they meet me, potentially in Airdrie and Shotts, to hear more about the excellent skills and potential that exist throughout the constituency that could undoubtedly contribute to their and this Government’s ambitious work?

[Sarah Jones]

Of course, our industrial strategy will speak to the whole country about the way that we are supporting businesses to grow and thrive. We have identified eight growth-driving sectors as the arrowheads of growth, but there are also policies that we believe will lift the whole country. I would be delighted to meet my hon. Friend. I congratulate him on the support that the local community showed in the recent Hamilton by-election, and look forward to talking to him further.

[Sir Ashley Fox (Bridgwater) (Con)]

As part of the Government’s industrial strategy, will the Minister and her colleagues in the Department for Science, Innovation and Technology carefully consider Somerset’s bid for an artificial intelligence growth zone? Its unique advantages—the Gravity local development order, and its existing connections to the grid—make it an ideal location to boost jobs and growth.

[Sarah Jones]

We have very big ambitions for AI and growth across the country, and I am very happy to talk to the hon. Gentleman about his proposals. I am sure that he has already talked to colleagues in DSIT, but I am very happy to take this matter further.

[Max Wilkinson (Cheltenham) (LD)]

Cyber-security will be a key pillar in the industrial strategy. That is welcome news in my constituency of Cheltenham, which is already a centre of excellence in the sector. We are on the cusp of unlocking £1 billion-worth of investment at the Golden Valley development in west Cheltenham. I know Ministers are aware of that, as are their colleagues in many other Departments. A planning application is expected very soon. Will Ministers join me in urging the two councils—the borough council and the county council—to get on with it and unlock that investment, which will bring growth to Cheltenham and the nation and, crucially, support defence as well?

[Sarah Jones]

As the hon. Gentleman will know, we are doing what we can to unlock the planning challenges that people have faced for many years in a whole range of areas. We are introducing legislation to do that, and making several changes. I obviously cannot comment on specific planning proposals in his area, but he should be reassured that we are doing what we can to encourage growth.

[Mr Speaker]

I call the shadow Minister.

[Dame Harriett Baldwin (West Worcestershire) (Con)]

We have been promised a modern industrial strategy for nearly a year. First, it was going to be with us in the spring; then it was going to be published at the spending review; and now it will be here “shortly”. The industrial strategy seems to be a strategy to clobber industry with higher taxes and higher business rates. Will the modern industrial strategy have greater longevity than the Office for Investment? It was announced in October, and we were not given an update until last Thursday, when it launched. Yesterday, we were told in the spending review that it is now being restructured. What is the future for the Office for Investment?

[Sarah Jones]

I can guarantee the hon. Lady that our industrial strategy will have a longer shelf life than hers did; I think it lasted 18 months—I am not entirely sure. We forget, because it did not have much of an impact. We have worked with all industries across the country to put together a comprehensive package that will make it easier to do business in the UK, and support our city regions and clusters across the country, where we have excellent industry. It will turbocharge the eight growth sectors, and it will make the Government more agile in interacting with business. That is why we are reforming the Office for Investment, as we have always said we will. It is now a significantly more substantial organisation, and will give significantly more support. The hon. Lady should look at—

[Mr Speaker]

Order. I am really bothered, because we have only got to question 8, and I still need to call the Liberal Democrat spokesperson.

[Sarah Olney (Richmond Park) (LD)]

The Liberal Democrats welcome yesterday’s announcements from the Chancellor on investment in public infrastructure projects. However, the general secretary of the Prospect trade union has warned that the UK lacks the skilled workers required for the new defence and nuclear projects outlined by the Chancellor. Similarly, Make UK and the Federation of Small Businesses have highlighted that a shortage of skilled workers would be a critical stumbling block for growth. As we continue to await the much-anticipated industrial strategy, why are the Government moving funding away from level 7 apprenticeships, when we know that they support social mobility? More broadly, why did they not seize the opportunity in yesterday’s statement to commit to fixing the apprenticeship levy, to ensure that money is invested in skills and training?

[Sarah Jones]

Forgive me for my long answers, Mr Speaker, but there is a lot to talk about in the industrial strategy, and I like to talk about it. The hon. Lady raises an important point. There is a significant skills challenge, and we will not shy away from it. Yesterday, £1.2 billion for skills was announced in the spending review. We have announced £600 million for construction skills, because that is a big issue for building the infrastructure that we need. We know we need to go further, and we are working closely with industry on how we can use the resources we have to recruit the welders, engineers—

[Mr Speaker]

Order. If there is so much to say, the Minister should bring forward a statement, or let us have a debate on this very important subject. I do not know how she will explain to MPs that they will not get in, because I am now going to topicals.

--- Later in debate ---

[Mark Ferguson (Gateshead Central and Whickham) (Lab)]

T2. This week, the Government have announced £86 billion for research and development. Recently, I visited PROTO and Digital Catapult in my constituency. Does the Minister agree with me that this sort of investment is exactly what Gateshead, the north-east and our country need?

[The Minister for Industry (Sarah Jones)]

I completely agree with my hon. Friend. I know that he will do what he can to promote his constituency, and the extra funding for the British Business Bank will really support his area.

[Graham Stuart (Beverley and Holderness) (Con)]

T3. In the US trade agreement, the Prime Minister gave access to the UK market for 1.4 billion litres of US bioethanol. The Secretary of State will know that that is the entire size of the UK market. Yesterday, apprentices came here from Vivergo in my constituency. The hundreds of people directly employed there, and the thousands in the supply chain, wonder how this Government, on the verge of producing an industrial strategy, can want to abandon the nascent bioethanol industry in this country entirely. What will he do to stop that?