Advanced Research and Invention Agency Bill

Theresa May Excerpts

Report stage & 3rd reading
Monday 7th June 2021 Commons Chamber

[Mr Deputy Speaker (Mr Nigel Evans)]

May I reiterate again that anybody who wishes to withdraw from the debate—we have had 35 people withdraw already—should please do so through the Speaker’s Office? If you are on the call list, please do not assume that the people above you have not withdrawn. The chances are that they have.

[Mrs Theresa May (Maidenhead) (Con)]

Mr Deputy Speaker, I am not sure whether your reiteration just before I stood up to speak, that you hope that anybody who wants to withdraw will do so, was a hint. When I put in to speak in the debate, I had intended to speak on a new clause that has not been selected, but after looking at the other amendments and new clauses, there is one aspect that I want to speak on briefly.

I apologise to those Members of the House who were on the Committee, because I can see that there was quite an exchange on these matters in Committee, but I want to pick up on an issue that was raised by the hon. Member for Aberdeen South (Stephen Flynn), who talked about the need for a mission and, in a sense, to restrict this organisation’s mission. He spoke particularly about climate change, which I know is a key issue. I was the Prime Minister who put the 2050 net zero emissions target into legislation, and the UK can be very proud of having been the first major country to do that.

An enormous amount of work needs to be done to ensure that we can take the decisions individually, as businesses and as a Government that will lead to net zero. Part of that will be about research, but as my hon. Friend the Member for North East Bedfordshire (Richard Fuller) said, there are enormous numbers of people out there doing research and companies looking for products to sell that will help to get us to that position. It seems to me that we should not restrict the mission of ARIA. It is important to give this organisation the freedom to look widely. I say that not just in a blue skies thinking way, but also because I had some interaction with the American equivalent of ARIA, on which ARIA is based, when I was Home Secretary because it was doing some really interesting research and innovative work on issues of security.

In evidence to the Committee, Professor Bond suggested that ARIA should be about

“radical innovation, which is different from grand missions and grand challenges.”––[Official Report, Advanced Research and Invention Agency Public Bill Committee, 14 April 2021; c. 20, Q16.]

That reference to “grand challenges” was, I am sure, a reference to the modern industrial strategy, sadly now cast aside, which set out grand challenges but also set out the aim for the UK to be the most innovative economy, and ARIA can have a real impact in that area.

The challenge for ARIA is that it needs to be truly innovative, it needs to have blue skies thinking and it needs to be doing what other people are not doing, but it has to have a purpose in doing that. What I hope we will not see is an organisation where lots of scientists and people get together, think lots of wild thoughts, enjoy talking about them and possibly publish a few papers, but at the end of the day, there is no practical difference to people’s lives as a result of that. The aim of this is to do that innovative thinking but, in due course, for that innovative thinking—whether it is taken up by other scientists, business or whoever—to lead to a real improvement in people’s lives.

[Graham Stringer (Blackley and Broughton) (Lab)]

I agree with the line that the right hon. Lady is taking, but she is missing out one really important factor in achieving the desirable objectives she has listed, which is that ARIA must be prepared to fail on a number of occasions and take high risks. Does she agree with that?

[Mrs May]

I do agree with that. Indeed, at the risk of scratching a sore for the Government, I would add that the modern industrial strategy made the point that, in terms of Government support for different areas of research and development, we must be willing to see some fail, because we cannot possibly know from the beginning everything that will be a success. That is important, but of course, I hope that ARIA will not be an organisation for which everything fails. It has to be prepared to have some failures, but obviously what we want to see is some really positive work coming out of this that can be of real benefit.

[Dawn Butler (Brent Central) (Lab)]

I absolutely agree with the right hon. Lady about wanting to see ARIA be successful. She talked about scientists sitting around, having a chat and producing some papers but having no real impact. Does she agree that, given the way in which ARIA is currently set up, without any freedom of information requests being allowable, that could be the reality?

[Mrs May]

No, I do not agree that there is a natural causal relationship between the two. We will see whether ARIA is successful by what actually comes out, because at some point these ideas will come out. I recognise that there are issues for scientists who are really treading new ground, to ensure that they are able to do so with freedom—without that ability being taken away by others. That will be important for this organisation.

It is exciting that this agency is being set up. With the right people, it can do really good things, but it should not be restricted to a particular area of mission. When it does that blue skies thinking, we should ensure that the aim—the reason that the Government are setting it up—is to improve people’s lives in this country. That is what we all want to do and it is what the organisation should be about.

Budget Resolutions and Economic Situation

Theresa May Excerpts

Tuesday 9th March 2021 Commons Chamber

[The Secretary of State for Business, Energy and Industrial Strategy (Kwasi Kwarteng)]

It is a real pleasure for me to open today’s debate on the Budget that my right hon. Friend the Chancellor the Exchequer brought before the House last week. It is a Budget that meets the needs of the moment. It delivers support to all corners of our United Kingdom. It shores up our defences against the ravaging impact of the pandemic while laying a clear path for our journey out of the crisis and into a brighter future. As the Chancellor himself acknowledged last week, it is a path that we are only able to take because of the incredible efforts of our frontline health workers who have vaccinated more than 20 million people across the United Kingdom, and the researchers and manufacturers who have managed to produce effective vaccines in such a short space of time. I am sure I speak on behalf of the entire House when I express the deepest gratitude to everyone involved in this heroic national effort.

[Mrs Theresa May (Maidenhead) (Con)]

My right hon. Friend makes some very important points about our health staff and the vaccination programme, which has been absolutely superb in this country. Does he recognise that the creation of a new vaccine centre and medicines manufacturing centre were part of the life sciences deals that were enabled by the modern industrial strategy? Will he welcome the modern industrial strategy?

[Kwasi Kwarteng]

I have not come here to defend or rebut any of the wonderful measures that we took under my right hon. Friend’s leadership. I am very conscious of the fact that many people want to take part in this debate, and I am afraid that I have to press on.

The researchers and manufacturers have done an extremely good job, as my right hon. Friend says, in shoring up our response to the crisis. The Budget provides an additional £65 billion of measures in response to covid, designed to support the economy this year. It covers an extension of the furlough scheme, which has already supported 1.3 million employers and more than 11 million jobs, providing vital funds to households and communities throughout our country. It has added to the near £20 billion of support that the Treasury has paid out to support 2.7 million self-employed people.

The Budget presents a dynamic and generous plan to help businesses to get up to speed. We are providing restart grants of up to £18,000 to more than 680,000 business premises. We are also providing further support for hospitality and retail businesses who may be more affected by restrictions when they reopen. While our plan for jobs has been given a £126 million boost supporting 40,000 more traineeships and doubling the cash incentive for firms taking on new apprentices, the Budget ensures that more people are able to access secure, skilled work.

Of course, there can be no denial that the jobs market has changed profoundly over the past year.

--- Later in debate ---

[Mrs Theresa May (Maidenhead) (Con)]

I refer the House to my entry in the Register of Members’ Financial Interests.

In unprecedented times, I commend my right hon. Friend the Chancellor for recognising the need to combine continued support for people in jobs, even as we see the light at the end of the tunnel of this pandemic, with the need to restore our public finances and to set us on the path of growth for recovery in the future. I will not dwell on the first of those, but I welcome specifically the funding for tackling domestic abuse, focused as it will be on the perpetrator programmes often overlooked in the past. However, I continue to fail to understand why the Treasury, and, I fear, the Department for Business, Energy and Industrial Strategy, seem institutionally incapable of understanding the significance of the aviation sector for jobs and for our economy.

On other specific issues, I wish to refer to one group who are badly affected by the impact of dealing with the pandemic: women. There is evidence to show that lockdown measures have been particularly difficult for women, and that there are women who have abandoned their careers because they have found it impossible to juggle the requirements of lockdown, with home schooling and so forth, with their careers. We need those women in the workplace. We need those female entrepreneurs for our future. I urge the Government to look actively at what they can do to deal with that issue and to encourage women entrepreneurs.

Another group badly affected by the pandemic is young people, with the hospitality sector being a case in point. The intergenerational divide between young and old has been exacerbated by the measures taken to deal with the pandemic, so it is absolutely right that we take measures to restore our public finances and do not simply land the bill on young people and future generations. I know there are those, including some of my colleagues, who will say, “You don’t need to do anything to taxes. You just need to have growth”, but one worry from this Budget must be the OBR forecast for growth. It is forecast in the medium term not to return to the pre-financial crisis level of an average annual rate of 2.5%, but to be around the pre-covid rate of 1.5%. There is no doubt that the pandemic has had an impact, but pre-covid the uncertainty around Brexit was also having an impact on our economy. Of course there is every prospect that Brexit will have a continued impact in reducing the size of our economy into the future. So we need to focus on growth, and I will say a little more specifically about that in a moment.

I am concerned that the Government have simply adopted the Treasury orthodoxy that if we wish to encourage investment by business, all we do are capital allowances. I can tell my right hon. Friend the Business Secretary that year after year that is the answer the Treasury comes up with. If we want an innovation economy, we need to invest and support investment in areas that encourage growth and innovation, and that means research and development. We are to see another consultation on R&D tax credits—I believe it is the third in three years. I have to say to him: stop consulting, just get on and do something. We could extend the definition of R&D expenditure or increase the rate, but we must act. We need investment in innovation, not in chief executives’ Jacuzzis.

Another area I want to emphasise for my right hon. Friend is that there is a lot of talk from Government—we all do it and we have done it in the past—about capital spending, and infrastructure is always what we reach for. We must never forget, however, that human capital is increasingly what we must be investing in. We should be ensuring that there is effort and funding available for the skills White Paper and for the response to the Augar review. What we need to build back better is a plan that transforms the economy: ideas and an innovation economy; people investing in skills; upgrading infrastructure; and making this the best place to grow and start a business. That was the modern industrial strategy.

The Government say they need a new framework. My right hon. Friend has said that that framework builds on the industrial strategy, but it does not. There are two reasons this is the wrong approach. First, we need a long-term strategy. We cannot just magic a plan out of thin air and expect it to work in a year or so—we need something that will work longer term. We should make changes where necessary, not just for the sake of making a change.

Secondly, a huge amount of effort went in, with Government working with the private sector, to develop that modern industrial strategy. The private sector welcomed it, because it was not about picking winners. This is where I depart from the former Leader of the Opposition, the right hon. Member for Doncaster North (Edward Miliband), because Labour’s answer was always to pick winners; we agreed with business the sectors that needed to be strengthened and in which we were strong, and let the market decide the companies that were going to be the winners. We need to continue with that effort. The industrial strategy was welcomed by the private sector and it was recognised internationally. Do not abandon it. Build on it, for the sake of all our futures.

[Mr Deputy Speaker (Mr Nigel Evans)]

It was like a blast from the past there, momentarily.

Company Transparency (Carbon in Supply Chains) Bill

Theresa May Excerpts

2nd reading & 2nd reading: House of Commons
Friday 16th October 2020 Commons Chamber

[Karen Bradley]

I think it has begun to make a difference, but the measure was only introduced in 2015. It applies only to large companies with a turnover of over £36 million, and we have only just begun to see it being used. I know from friends I used to work with when I was employed as a chartered accountant that they are taking this matter seriously. In fact, my right hon. Friend the Member for Maidenhead and I were on a panel only yesterday—this Sunday is Anti-slavery Day—discussing exactly that point and the measures that businesses are taking to identify slavery in their supply chains. It is making a difference. More can be done, and I am pleased that the Home Office has taken more steps in that direction, but it is making a difference.

[Mrs Theresa May (Maidenhead) (Con)]

May I say through my right hon. Friend to our hon. Friend the Member for Christchurch (Sir Christopher Chope) that if he wants to know what companies are doing he should look at company reports and accounts, and he will see that real action has been taken by companies, who have explored their supply chains, ensuring that there is no modern slavery in them.

[Karen Bradley]

My right hon. Friend is absolutely right. I can tell my hon. Friend the Member for Christchurch with absolute conviction that companies and boards are taking this matter seriously. Would anybody wish to be a board director signing off a report saying that they had taken no steps to eradicate modern slavery in their supply chain? I do not think any of us would want that.

I was thinking about what I could do usefully to assist the Government in dealing with carbon, because it is very easy for businesses to offshore carbon. I am not suggesting that UK businesses do that or choose to have products manufactured in high carbon-emitting countries to avoid carbon emission restrictions in the UK. It is absolutely right that this country was the first to legislate for net zero by 2050. That is fantastic, and this country should be incredibly proud of it. We are also hosting COP26, which again gives the UK an opportunity to show global leadership. The Prime Minister, in his recent address to the United Nations, said:

“we have a responsibility to our planet to lead in this way and to do this.”

I say to my right hon. Friend the Minister that this is a simple measure that companies understand. It would allow us to shine a light through supply chains and see what carbon emissions companies are offshoring and what they are doing to bring products for sale in the UK without giving proper regard to carbon emissions.

Now, I am a realist as well as a former Whip—