Asked by: Daisy Cooper (Liberal Democrat - St Albans)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, if she will make an assessment of the potential merits of requiring manufacturers to provide information to consumers of (a) cars and (b) other high value products on the extent to which repairs for those products are reliant on critical metals that are affected by supply-side disruption as a result of the war in Ukraine.
Answered by Alan Mak - Minister of State (Department for Business and Trade) (jointly with the Cabinet Office)
Currently manufacturers are only legally required to provide consumers with information on fuel consumption and CO2 emissions, for new cars and vans at the point of sale. There are no obligations on manufacturers to provide information on where the materials are sourced and no assessment has been made of the potential merits of doing so. The UK Critical Minerals Strategy, published in July 2022, sets out steps for ensuring the long-term security of critical minerals like those needed for electric vehicle batteries.
The Government understands the concerns of the automotive industry regarding the potential impact of the invasion on its business operations and supply chains worldwide. We are in regular dialogue with UK auto manufacturers and business representative bodies to understand any direct and indirect impacts on UK operations, including trade related issues.
Asked by: Lord Wigley (Plaid Cymru - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government what assessment they have made of the deposits of lithium in Wales and Scotland; and whether they will ensure that all such is conveyed to the respective devolved authorities.
Answered by Lord Johnson of Lainston - Minister of State (Department for Business and Trade)
The Critical Minerals Strategy committed to collate UK geoscientific data and identify areas of geological potential for critical mineral extraction. The Department for Business and Trade commissioned the British Geological Survey to undertake the study, “Potential for Critical Raw Material Prospectivity in the UK”, delivered by the Critical Minerals Intelligence Centre (CMIC) and was published in 2023. It is a preliminary assessment of geological factors only, and its findings do not mean prospective areas identified will necessarily be targeted for exploration and mining. Mineral planning policy is also a devolved matter.
Areas of potential geological prospectivity for critical minerals were identified in both Scotland and Wales. Regarding the geological prospectivity for lithium, the report identified two areas in Scotland and no areas in Wales.
Asked by: Lord Wigley (Plaid Cymru - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government what assessment they have made of deposits of lithium in Wales and Scotland, and what discussions they have had with the respective devolved administrations to ensure they are aware of such information.
Answered by Lord Johnson of Lainston - Minister of State (Department for Business and Trade)
The Critical Minerals Strategy committed to collate UK geoscientific data and identify areas of geological potential for critical mineral extraction. The Department for Business and Trade commissioned the British Geological Survey to undertake the study, “Potential for Critical Raw Material Prospectivity in the UK”, delivered by the Critical Minerals Intelligence Centre (CMIC) and was published in 2023. It is a preliminary assessment of geological factors only, and its findings do not mean prospective areas identified will necessarily be targeted for exploration and mining. Mineral planning policy is also a devolved matter.
Areas of potential geological prospectivity for critical minerals were identified in both Scotland and Wales. Regarding the geological prospectivity for lithium, the report identified two areas in Scotland and no areas in Wales.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government, further to the recent survey conducted by Boston Consulting Group, what steps they are taking to address the chief concerns identified by businesses, such as (1) high energy prices, and (2) taxation.
Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)
The Government is backing British business, pursuing an ambitious policy agenda to boost growth and productivity. The OBR expects that policies announced at Spring Budget 2024 and in the previous two fiscal events will increase the size of the economy by 0.7% by 2028-29. This is through increasing total hours worked by the equivalent of more than 300,000 full-time workers and boosting business investment by £14 billion.
The Government provided an unprecedented package of support for businesses with energy costs through the Energy Bill Relief Scheme (EBRS) and the Energy Bill Discount Scheme. Together these schemes have provided around £7.5 billion to businesses for energy costs. In addition, the British Industry Supercharger, announced in February 2023, will significantly reduce electricity costs for key energy intensive industries such as steel, mining, batteries, and critical minerals.
On taxation, at Autumn Statement 2023 the Government made full expensing permanent, representing a tax cut to companies of over £10bn a year, and ensuring the UK has one of the most generous capital allowances regimes in the world. The Government also abolished the obligation to pay Class 2 self-employed NICs. Both announcements demonstrate the Government’s ongoing commitment to tax simplification.
In addition, the Government recognises that accounting for VAT can be a burden on small businesses. This is why we announced at Spring Budget 2024 that the VAT threshold will be raised from £85,000 to £90,000 from 1 April 2024. At £90,000, the UK has a higher VAT registration threshold than any EU Member State and the joint highest in the OECD. This keeps the majority UK businesses out of VAT altogether.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government what steps they are taking to support the manufacturing sector in the light of increased inflationary pressure as a result of supply disruptions in the Red Sea.
Answered by Lord Johnson of Lainston - Minister of State (Department for Business and Trade)
The Department is monitoring the situation closely, engaging with businesses, stakeholders and across government to identify and mitigate supply chain issues.
In November 2023 my department published our Advanced Manufacturing Plan which included measures to support the resilience of the UK’s manufacturing supply chain. More recently we published our Critical Import and Supply Chain Strategy, which will help build secure and reliable supply chains vital to the UK economy – including in advanced manufacturing. The Advanced Manufacturing Plan and our Critical Import and Supply Chain Strategy also build on our semiconductor, battery and critical minerals strategies.
Asked by: Scott Benton (Independent - Blackpool South)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, what steps she is taking to increase trade with Saudi Arabia.
Answered by Nusrat Ghani - Minister of State (Minister for Europe)
The Government is currently negotiating an ambitious UK-Gulf Cooperation Council (GCC) Free Trade Agreement (FTA) to boost trade with the region by cutting tariffs and removing red tape. The ongoing FTA negotiations with the GCC show our commitment to move towards a strengthened and more formalised trade relationship with Saudi Arabia.
Bilaterally, the UK and Saudi Arabia engage together as part of the Strategic Partnership Council to underpin bilateral relations, bolster mutually beneficial trade and investment, and develop partnerships between UK and Saudi giga-projects. I also recently travelled to Saudi Arabia to represent the UK at the Future Minerals Forum, one of the world’s largest critical mineral events.
The Government is also supporting British businesses operating in Saudi Arabia through our extensive market access work, which aims to reduce or remove regulatory or administrative restrictions that can impede a business exporting or investing overseas.
Asked by: Patrick Grady (Scottish National Party - Glasgow North)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, what steps she is taking to ensure that (a) human rights and (b) environmental protections are incorporated in the critical minerals supply chain strategy.
Answered by Nusrat Ghani - Minister of State (Minister for Europe)
Last year my Department published the UK's Critical Minerals Strategy to accelerate domestic production, collaborate with international partners, and enhance international markets to strengthen supply chains.
The Strategy commits to boost global environmental, social and governance (ESG) performance to support a more transparent, responsible, and sustainable critical minerals and mining industry. The UK is playing a leading role in international efforts to drive up ESG performance through its bilateral and multilateral engagements, including the Minerals Security Partnership. The UK is also a strong supporter and implementing country of the Extractive Industries Transparency Initiative.
Further, we will ensure UK domestic mining complies with permitting and planning regulations that protect the interests of communities and our natural environment.
Asked by: Baroness Bennett of Manor Castle (Green Party - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government what steps they are taking to strengthen the environmental duties and responsibilities of British mining companies operating overseas.
Answered by Lord Offord of Garvel - Parliamentary Under Secretary of State (Department for Business and Trade)
Last year my Department published the UK’s Critical Minerals Strategy to accelerate domestic production, collaborate with international partners, and enhance international markets to strengthen supply chains.
The Strategy commits to boost global environmental, social and governance (ESG) performance to support a more transparent, responsible, and sustainable critical minerals and mining industry. The UK is playing a leading role in international efforts to drive up ESG performance through its bilateral and multilateral engagements, including the Minerals Security Partnership and Sustainable Critical Minerals Alliance.
The UK has re-affirmed its commitment as a member of the Extractives Industries Transparency Initiative (EITI), advocating for better governance of the extractives and critical minerals sectors. At COP 15 the UK, along with Australia, Canada, France, Germany, Japan and the United States, signed up to the Canada-led Sustainable Critical Minerals Alliance, committing to promote high environmental, social and governance (ESG) standards and net zero mining practices, employing a nature forward approach.
The UK Government is supporting the International Organization for Standardization (ISO) to rationalise the range of existing mining sustainability standards and bring them together.
Asked by: Liam Byrne (Labour - Birmingham, Hodge Hill)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, what her Department's definition of a critical supply chain is; and which supply chains meet that definition.
Answered by Nusrat Ghani - Minister of State (Minister for Europe)
The government defines a critical supply chain as one that is vital to the UK’s economy, national security, or essential services. This covers a range of supply chains from critical minerals to essential medicines.
The government does not publish details on which supply chains are critical due to the sensitive nature of this information. My department will shortly be publishing a Critical Imports and Supply Chains Strategy, which will outline the steps that the UK has taken and will be taking to enhance critical imports and supply chain resilience.
Asked by: Jim Shannon (Democratic Unionist Party - Strangford)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, whether she has held recent discussions with the lithium battery manufacture industry on support for Cornwall Lithium.
Answered by Nusrat Ghani - Minister of State (Minister for Europe)
To accelerate the growth of domestic capabilities, government has supported several critical mineral projects. Funding has been targeted towards projects that actively build innovative, resilient value chains in the UK and contribute to our clean energy transition.
Cornish Lithium have received support via the government’s Automotive Transformation Fund (ATF). Government has also backed British Lithium through the ATF, which on 29 June announced a joint venture with Imerys to mine lithium in Cornwall.
Additionally, UK Infrastructure Bank recently announced an equity investment of approximately £24 million to support Cornish Lithium in the development of the UK’s critical minerals supply chain.