(3 months, 3 weeks ago)
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David Burton-Sampson (Southend West and Leigh) (Lab)
Alex Baker (Aldershot) (Lab)
Ashley Dalton (West Lancashire) (Lab)
The Secretary of State for Business and Trade (Jonathan Reynolds)
small businesses are the beating heart of our high streets and communities, and they are essential to economic success and our growth mission. We want growth in every part of the UK, and small businesses have an enormous role to play in that.
David Burton-Sampson
In Southend and Leigh, there are over 7,100 small and medium-sized enterprises, and in areas like Leigh Road, the Broadway and London Road, very few units are empty. Will my right hon. Friend meet me and representatives of the local business community to understand the challenges they face, and to discover some of the opportunities that businesses have taken to really capture the market?
Jonathan Reynolds
I welcome my hon. Friend to his place. I have always enjoyed my visits to his constituency, particularly enjoying an ice cream at Rossi’s ice cream parlour. Those visits had a serious purpose: they helped us to build our programme for small business, which recognises not only issues such as late payments, which this Department will deal with, but the need for the whole Government to tackle access to finance and retail crime—the things that make a difference. I will be delighted to make sure that my hon. Friend gets the meeting that he requests with my officials, so we can continue to do that important work.
Alex Baker
Small businesses in my constituency are keen to play their part in the Government’s growth agenda, but they tell me that they have been priced out of trading in Farnborough town centre because of rising costs. Will the Secretary of State join me in congratulating the Federation of Small Businesses, which this September celebrates its 50th year of supporting small businesses in the UK? What is his Department doing to ensure that small businesses that want to trade on the high street are supported to do so?
Jonathan Reynolds
I also welcome my hon. Friend to her place. I was pleased to meet her at the Farnborough air show, of which I am sure her community is extremely proud. I also extend birthday wishes to the Federation of Small Businesses, with which we work very closely, particularly on policies on issues such as late payments. I am always aware of the FSB’s incredible coverage; it has over 150,000 members across the country. Of course, the FSB began in Blackpool, so it is another great thing that the north-west of England has given this country.
Ashley Dalton
West Lancashire is rich in small and medium-sized enterprises and boasts several markets, but local business owners and market traders tell me that a lack of access to cash banking services is a major obstacle to growing their businesses and is placing additional costs on trading. How are the Government planning to support SMEs’ access to cash banking services, especially in rural areas?
Jonathan Reynolds
This issue is important to Members in all parts of the country, but I recognise my hon. Friend’s particular point about prosperous rural economies. Access to banking and financial services is a prime example of the fact that the Government will work across every Department to make sure we are giving businesses what they need. I am not nostalgic, and I understand that banking has changed, but small businesses need to be able to deposit cash on the high street. The key policy in this area will be run by the Treasury, but this is about changing the eligibility for banking hubs, so that we have more of them. We will see at least an additional 350 in this Parliament, including in my constituency; tomorrow, I will take a sneak peek at the new banking hub in Stalybridge.
Mr Louie French (Old Bexley and Sidcup) (Con)
Under the Labour Mayor of London’s proposals, many small businesses that drive vans via the Blackwall tunnel will soon have to pay charges of up to £40 a day—the congestion charge, the ultra low emission zone charge, and the Mayor’s new tunnel tax. Do the Government agree that this is neither fair nor good for economic growth?
Jonathan Reynolds
I thank the hon. Member for raising a matter that is important to his constituency. My Department works very closely with a range of devolved arrangements around the UK, and it is important to work with them with respect and good faith. This question is clearly for the Mayor of London, but I recognise the hon. Member’s point. We always take heed of the aggregate impact on business of everything at every level of government, which is why having an industrial strategy and a small business plan is key.
Sarah Dyke (Glastonbury and Somerton) (LD)
Small businesses in the south-west have a huge role to play in growing the economy. However, the latest south-west small business index score, which measures the confidence of small businesses, has declined by 23%—there has been a fall of 30 points since the last quarter. Will the Minister meet me to discuss how we can support small businesses across the south-west?
Jonathan Reynolds
Business confidence was strengthened considerably across the United Kingdom as a whole following the general election and the return to some political stability, which businesses of every size have sorely missed over recent years. However, I hear the hon. Lady’s point about her area and region, which is an important priority for me. I will ensure she gets the meeting she needs, so we can have a conversation about how we can work together to give people in her area a platform for success.
Mr Peter Bedford (Mid Leicestershire) (Con)
What action is the Government taking to support small and medium-sized businesses in getting access to finance, so that they can grow for the future?
Jonathan Reynolds
I thank the hon. Member for that question. That is a key issue. There have been positive developments in recent years, particularly through the work of the British Business Bank. The Government feel that the landscape for public finance institutions is now quite busy. The key policy is to ensure that the national wealth fund aligns with priorities in this area, expands the work that has been done, and ensures consistency, so there is a ready way for businesses to understand what can sometimes be a confusing landscape. Also, policies such as that on growth hubs will continue, so the interface for businesses is straightforward and simple, and, fundamentally, the product to access finance will be there when they need it.
Sarah Olney (Richmond Park) (LD)
It is a pleasure to see the Secretary of State at the Dispatch Box. Recent years have seen our SMEs struggling with reams of red tape when they attempt to trade with the rest of the world. Reporting this week has detailed the chaos and extortionate expense that small businesses in the agrifood industries have been dealing with since April’s introduction of the common user charge. I appreciate that this is yet another occasion on which the Government must deal with a mess not of their making, but what concrete steps is the Minister taking to support and empower our small businesses to trade internationally?
Jonathan Reynolds
I thank the hon. Lady for her kind words. I recognise that the Liberal Democrat manifesto shows that we have many common areas of interest, particularly on industrial strategy and trade. Under this Government, trade policy will match our domestic, economic and business priorities. We will be able to reset our relationship with the European Union because, to be frank, we are unencumbered by some of the internal politics of the last Government. We believe that we can make the most of opportunities around the world. Businesses tell me, as I am sure they tell every hon. Member here, that for many years, politics has been driving the agenda, rather than what businesses need. That will change, and has already begun to change. We will work with anyone in the House who is keen to provide a platform for success on knocking down barriers and getting businesses what they need.
Sarah Coombes (West Bromwich) (Lab)
Luke Myer (Middlesbrough South and East Cleveland) (Lab)
Melanie Onn (Great Grimsby and Cleethorpes) (Lab)
Lauren Edwards (Rochester and Strood) (Lab)
Anneliese Midgley (Knowsley) (Lab)
Rachel Hopkins (Luton South and South Bedfordshire) (Lab)
The Secretary of State for Business and Trade (Jonathan Reynolds)
It is lovely to see you in the Chair, Madam Deputy Speaker, and it is great to see so much interest in the industrial strategy from my hon. Friends. However, I believe Members in all parts of the House can and should support the strategy, and we will seek to make cross-party arrangements. The need is great. We must improve on the UK’s poor business investment performance, which has been the lowest in the G7 for some time. We must recognise that so much chopping and changing of policy in recent years has been to our detriment. That will come to an end under this Government and this industrial strategy.
Sarah Coombes
The Black Country has long been a manufacturing heartland, home to numerous businesses, large and small, that support thousands of good-quality local jobs. Given the Government’s commitment to supporting British manufacturing, will the Minister set out how the upcoming industrial strategy will support manufacturing businesses in the west midlands?
Jonathan Reynolds
It is wonderful to hear a strong and authentic voice from the Black Country making a charge for industrial strategy; I thank my hon. Friend for her comments. The purpose of the industrial strategy is to capture a much greater share of the big international investment cycles, to explain straightforwardly to investors what those are, to provide consistency and to choose sectors. That does not mean the sectors that are not part of the strategy are not important, but is simply because the strategy must have priorities in it. I think my hon. Friend will support our choices, which will be revealed in the forthcoming weeks. Her area will play a major role in the success of the strategy for the whole of the country.
Luke Myer
A key plank of our industrial strategy must be green jobs, which Teesside is perfectly positioned to deliver. Inward investment is important—I had a positive meeting this week with a company that wants to invest millions in green fuel—as is backing British manufacturers, which will require the development of the country’s skills base. Will the Minister provide assurances about his work with the Department for Education to ensure vocational education is protected, and British manufacturing is protected as well?
Jonathan Reynolds
I thank my hon. Friend for his question. Teesside is a hugely exciting part of the country. There is so much to be proud of there, and so much to be excited about for the future, because of its advantages and the offer that it can make. He asks about green jobs. I have said many times that decarbonisation cannot be deindustrialisation; that is very important. We must recognise that the policy mix that we have inherited is not the right one for delivering decarbonisation, so changes will have to be made. For any business at any level, skills and access to talent in the labour market will always be the foundational issue. We work very closely with our colleagues in the Department for Education. The creation of Skills England and a better link between the skills system and immigration are key parts of that. Moreover, changing the apprenticeship levy to the growth and skills levy, which we co-designed with business, shows that we are addressing this agenda in a comprehensive way for the step change that is required to make our policy a success.
Melanie Onn
The Secretary of State will be aware of Air Products, which intends to invest £2 billion in northern Lincolnshire and green hydrogen projects. Does he agree that that investment would not only transform the south bank of the Humber, including my constituency of Great Grimsby and Cleethorpes, bringing 1,400 new jobs, but be an ideal project to include in the global investment summit? Perhaps he would be interested in meeting representatives of Air Products and me at some point.
Jonathan Reynolds
Let me say how wonderful it is to see my hon. Friend back in her place, representing her community and bringing with her even more expertise from the roles that she has held and the work that she has done in her time outside Parliament. It is a key priority for me to ensure that good jobs in the supply chain come with the transition that we all now support. I can tell her not only that we are interested in Air Products, but that my colleague, the Minister of State for Industry, already has a meeting with it scheduled in the next few days, and we look forward to working with my hon. Friend not just on that, but on many issues in the weeks and months to come.
Lauren Edwards
The voluntary sector had a strong voice under the previous Labour Government, and partnership with it was key to our achievements in office. How will my right hon. Friend ensure that the voluntary sector has a strong voice once again under Labour, so that we can deliver the Government’s industrial strategy, particularly as it relates to the creative industries and the mission to ensure high-quality care for all?
Jonathan Reynolds
It is also great to see my hon. Friend in her place. I enjoyed working with her in her previous role in local government, and she brings all that expertise and achievement with her to this House.
I wish to embed our industrial strategy for the long term. I want to focus it on long-term, sustainable, inclusive and secure growth that will cover many sectors of the economy, as my hon. Friend has mentioned. That will mean the Government having to work in partnership not just with business, but with civil society, trade unions and local and regional leaders in a way, to be frank, that we have not been doing for some years. We will make sure, as she requests, that that is a priority, and is visible in the work that we do.
Anneliese Midgley
A Labour Government brought secure, well-paid working-class jobs to Knowsley with Ford Halewood. My dad getting a job there changed my family’s life and lifted us out of poverty. It did the same for thousands of families like ours. Does the Secretary of State agree that any successful industrial strategy must provide good-quality, unionised jobs to lift living standards in areas such as mine?
Jonathan Reynolds
It is also a pleasure to welcome my hon. Friend to her place, and I thank her for those comments, with which I thoroughly agree. This is what it is all about—good work and good wages in every part of the country. I will work with anyone to deliver that. Her personal story shows the difference that such a policy can make. I often reference, for instance, the difference that Nissan’s investment made to communities in Sunderland. When such investment is made and got right, it delivers long-term benefits for communities and for the UK—more so perhaps than any other policy area. If we want to address, as I do, the UK’s profound regional inequality, policies such as these are so important, so I thoroughly endorse her comments. The industrial strategy is only one part of the growth mission, but it is at the heart of the pro-worker, pro-business agenda not just of my Department, but of the whole Government.
Rachel Hopkins
I welcome our Labour Government’s commitment to decarbonisation, particularly for Britain’s automotive industry. It is a vital step in securing the sector’s future and safeguarding high-quality jobs, which are critical for the Vauxhall plant in my constituency of Luton South and South Bedfordshire. Will the Secretary of State update the House on how his Department is working across Government, including with the Treasury and the Department for Energy Security and Net Zero, to drive innovative decarbonisation solutions, to ensure the success of our growth mission?
Jonathan Reynolds
My hon. Friend is not a new colleague, and her advocacy of the automotive sector, particularly given her constituency interest in Stellantis, is well known and welcome. This was a challenging area, particularly for her constituency, that we inherited. The previous Government had neglected engagement with the business. Since we took office, we have had extensive engagement with Carlos Tavares and the Stellantis team. The journey that the automotive sector has to go on for decarbonisation presents challenges, and there is a challenging picture across all of Europe, but the neglect of the previous Government has ended. Not only am I closely engaged on the issue, as are my ministerial team, but so is the Secretary of State for Transport, particularly in relation to the zero emission vehicle mandate—a key area of policy for the business. We will continue that work, and I will continue to keep my hon. Friend, and any other local MPs, updated, as we have done to date.
George Freeman (Mid Norfolk) (Con)
I welcome the Secretary of State and his team to what I think is one of the most important Departments in Government. As a sometimes lonely voice on the Conservative Benches advocating for industrial strategy, I signal support for his intention. I am sure that he agrees that the big challenge is to convert our phenomenal science and technology leadership into sovereign industrial supply chain leadership around this country. Having led the strategy for life sciences—quantum, engineering biology, fusion—may I ask whether he agrees that the key to this is cross-departmental Whitehall work, and ensuring that we do not end up with endless earnest, well-intended committees, but actually engage the small businesses, entrepreneurs and investors who are driving these sectors of tomorrow?
Jonathan Reynolds
I genuinely thank the hon. Member for those comments, because I am serious when I say that I believe that industrial strategy should command support across the political spectrum. That is the norm in a lot of comparable countries to ours. I recognise not just the work that he did, but the number of times he did it; he was called back repeatedly by the last Government to do that work. I am often struck by the comments that Lord Willetts made in the Policy Exchange pamphlet about the lack of a supply chain for offshore wind really benefiting Scandinavian economies, rather than ours.
There are common areas of interest, and to make this industrial strategy more successful than the very credible approach taken by the Conservative Government when Theresa May was Prime Minister, we need it to last longer, and for it to have consistency and permanence. I know that the advocates and designers of that policy wanted the chance to do that. The strategy must also be cross-departmental. It will be led by my Department, but it cannot be solely my Department that is engaged. I can tell the hon. Member that all my Cabinet colleagues share our objectives and a keenness to make this work. We do not just want strategies put on the shelf for the short or long term; we want the strategy to make a difference in the communities that everyone in the Chamber represents. I welcome that cross-party support.
Tim Farron (Westmorland and Lonsdale) (LD)
A successful industrial strategy obviously has to include a wise workforce strategy. In the lakes and dales of Westmorland, the workforce is far too small for our needs and is sadly shrinking—66% of hospitality and tourism businesses in the second busiest visitor destination in the country are working below capacity because they do not have enough staff. There are two main issues: a lack of affordable places for people to live, and an inability to bring people in from overseas. Will the Secretary of State support the extension of housing grants to build more social rented homes in Westmorland, and a youth mobility visa deal with the European Union, which would allow us to bring in people to supplement our far-too-small workforce?
Jonathan Reynolds
The hon. Member makes a really important point. We all have common areas of concern about the United Kingdom economy as a whole—the poor productivity since the financial crisis, the level of growth not delivering the living standards and public services that we want, and the low investment figure—but there are also specific challenges in each part of the country. The relationship between national policy, local policy and local leadership is the way to address those issues.
The hon. Member is an extremely skilled parliamentarian, and he added on a couple of issues that are clearly beyond the remit of the Department for Business and Trade—he did it very well. On the reset of the relationship with the European Union, there are practical, pragmatic measures that I will ask all Members to support, particularly on the recognition of professional qualifications, which I think could have been part of the deal, and what we are planning for food and agricultural products, if we can be successful in that negotiation. Those are our asks. There will be asks from the other side, and we will have to work with our partners to negotiate these things, but I recognise the hon. Member’s key point: yes, there are UK-wide needs, but there are specific needs in each area, and we have to get them right—for his area, for mine, and for everyone’s present.
Martin Vickers (Brigg and Immingham) (Con)
Further to the question about Air Products asked by the hon. Member for Great Grimsby and Cleethorpes (Melanie Onn), she and I met the company last night; as is often the case, business wants to move faster than the Government. Will the Secretary of State give an assurance that he will do his very best to ensure that his Department meets the deadlines that Air Products hopes for? In a wider context, as the hon. Lady said, northern Lincolnshire is a prime area for the renewables sector, and the Air Products development is key to that.
Jonathan Reynolds
The hon. Gentleman is right to say that business is often frustrated by the pace at which the Government can go. We are doing a considerable amount of work on how business interfaces with the Government as a whole, how that is managed as a relationship, and how we can assemble the different parts of the state in the way needed to respond to some of our big investment opportunities.
Frankly, in the past, we have often seen the UK miss out, particularly to, for instance, the French. The “Choose France” policy has been fairly successful from their point of view by taking some investments that I believe should have come to the UK. They have got ahead of us. We have to understand that the competitive environment that we are now in is extremely challenging and we have missed out on things. We have to change and get it right and better. I will work with the hon. Gentleman— I have already highlighted the meeting scheduled with my Minister of State—and he makes a fair point that we all recognise has to be addressed.
Jim Shannon (Strangford) (DUP)
I welcome the Secretary of State to his place and wish him well in the position he now controls. In Northern Ireland we have many businesses that can excel, but when it comes to an industrial strategy I particularly highlight the defence sector and the cyber-security sector. Just last Friday, my right hon. Friend the Member for Belfast East (Gavin Robinson) and I had a chance to visit Thales in east Belfast. Staff there explained to us that they employ almost 700 people on the site, and they also have an apprenticeships plan that is in action and are taking on another 25 apprenticeships. When it comes to expertise, they have the skills, experience and success, but they do not have the defence contracts, as they have in the rest of the United Kingdom. Will the Secretary of State say some words into the ear of the Secretary of State for Defence to ensure that Northern Ireland can play a bigger part when it comes to accessing those contracts?
Jonathan Reynolds
I absolutely agree with the strengths that the hon. Gentleman identified; he will know that I visited Northern Ireland as the shadow Secretary of State, partly to make that point. We are responsible for the promotion of the defence trade, so the relationship with the Ministry of Defence and the Secretary of State for Defence is very strong. I will absolutely do as the hon. Gentleman requests.
Gareth Bacon (Orpington) (Con)
The Government have repeatedly stated that securing economic growth is their fundamental mission, and that is, of course, an entirely laudable aim, but the fact is that more red tape will have the opposite effect. In the light of the right hon. Gentleman’s plans to introduce radical new labour laws, what would he say in response to the Federation of Small Businesses, which has made it clear that firms are increasingly worried about the Government’s proposals, fearing that they will drive up the costs and risks of doing business and thereby reduce their competitiveness and financial stability?
Jonathan Reynolds
I welcome the hon. Gentleman and the new shadow ministerial team to their posts. I have sat on those Benches in many questions sessions and understand how it can be at times.
Businesses of all sizes overwhelmingly supported the Labour party at the general election. How we behave in government will be exactly how we behaved in opposition, and we will co-design policy to ensure that. There is nothing in what we call the plan to make work pay—the new deal for working people—that is not already in the public domain. We had a manifesto with all that in it.
It is important to recognise—[Interruption.] There is a bit of chuntering coming from the Opposition Front Bench; again, something that I am not unfamiliar with. Look at the success of businesses in this area. Look at the businesses that already recognise trade unions and that already pay the living wage—look at that success. We are going to raise the employment floor, but it will be to a level above which many UK businesses are already operating. It is important to talk about the really successful things that businesses are doing to make sure that their workforces are treated with dignity and respect and get the living standards and prosperity that Members on this side of the House are all about delivering more of.
Alistair Strathern (Hitchin) (Lab)
The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)
The decline of too many high street businesses was one powerful example of the failure of the last Government’s economic record and the cost of living crisis they caused. Working with business and others, we are determined to breathe new life into our high streets. In particular, we will stamp out late payments, tackle soaring levels of retail crime and create a fairer business rates system.
Alistair Strathern
High street businesses such as Rose’s café in Shefford and Jamie’s Shoe Repairs in Hitchin do so much to bring joy and life to their high streets and make the towns and villages in my constituency so special, but far too many high street businesses right across my constituency have been feeling the squeeze over recent years and just did not feel that the previous Government had their back. What will we be doing differently to make sure that we will always be on the side of the high street businesses that make our communities such fantastic places to live?
Gareth Thomas
First, let me take this opportunity to say how much of a pleasure it is to see my hon. Friend back in this House; I went up to his constituency during the by-election campaign, and his result was one of many on election night that brought us all great pleasure.
We set out a five-point plan when we were in opposition to support businesses on high streets. At the heart of that was a plan to introduce a fairer business rates system, which I know colleagues in the Treasury are working very hard on. We also want to tackle the high levels of retail crime that scar too many of our high streets, and we will be bringing forward proposals on that in due course too.
Josh Babarinde (Eastbourne) (LD)
To grow, high street businesses in Eastbourne are relying on Government investment through initiatives such as the towns fund, of which my town was selected to be a beneficiary. Our towns fund board is fired up and ready to go, but still awaiting further instructions from Government on how to proceed. Will the Secretary of State, working with his Ministry of Housing, Communities and Local Government colleagues, urgently update me on whether Eastbourne’s high street businesses can still expect to benefit from the £20 million towns fund investment that they need and deserve?
Gareth Thomas
As the hon. Gentleman may know, the towns fund is the responsibility of colleagues in MHCLG. I will happily draw his comments to the attention of the Minister who has responsibility for it. But we are determined to work across Government to breathe new life into our high streets, and I am sure that the Minister will be very interested to meet the hon. Gentleman and take forward his concerns.
Gareth Snell (Stoke-on-Trent Central) (Lab/Co-op)
Whether it is better buses, more policing or city centre living, support for our high streets ought to be a cross-Government approach, because of the many levers that are available. Can the Minister say a bit more about what conversations he is having with other Departments to ensure that support for high streets stretches across every facet of this new Labour Government?
Gareth Thomas
My hon. Friend is absolutely right to say that there are policies across the whole of Government that impact on small businesses and particularly on high street businesses. One of the most significant issues is the need to see a fairer business rates system that creates better incentives for businesses to invest in the high street, in comparison with the competition from online giants, so we are working with colleagues in the Treasury on that. We are working with colleagues in the Home Office to address retail crime—there has been a huge surge in shoplifting—which my hon. Friend knows has scarred too many high streets. We are also working with other colleagues, as I referenced in response to the previous question, to try to bring forward a stronger offer to small businesses.
Sir Ashley Fox (Bridgwater) (Con)
Small and medium-sized enterprises are the lifeblood of our high streets, and there are many such businesses in my constituency of Bridgwater. I understand, though, that SMEs now face paying thousands of pounds in fines if they do not uphold the Government’s new French-style employment reforms. Will the Minister consider exempting SMEs from any financial sanctions by the new fair work agency?
Gareth Thomas
I congratulate the hon. Gentleman on his election to this House. I gently say that he will have heard from my right hon. Friend the Secretary of State that we have already consulted widely with the business community about our plans to improve rights for employees. We did that when we were in opposition and we have continued to do it in government. I am struck by the support that our plans have from small businesses and high street businesses, but we will continue to work with small businesses on the details of those plans.
Madam Deputy Speaker (Judith Cummins)
I call the Liberal Democrat spokesperson.
Sarah Olney (Richmond Park) (LD)
For too long, our high streets have been hostages to an outdated and damaging business rates system. Empty shopfronts and shuttered windows should never become the norm in our town centres. Small businesses in desperate need of a helping hand will have been deeply concerned not to see any mention of business rates system reform in the King’s Speech. Can the Minister assure us that business rates system reform is coming soon and that, when it does, it will be a comprehensive replacement of that damaging system?
Gareth Thomas
As I have said in response to previous questions, we are looking at that with Treasury colleagues. In opposition, we made commitments to introduce a fairer business rates system. Work on that is being led by Treasury colleagues, who will bring forward proposals in due course.
Helen Hayes (Dulwich and West Norwood) (Lab)
Becky Gittins (Clwyd East) (Lab)
The Minister for Trade Policy and Economic Security (Mr Douglas Alexander)
Forty-seven per cent of the United Kingdom’s total trade is with the European Union, and improving trade is a central part of the Government’s ambition to reset our relationship with Europe. Ministers have already been engaging positively on trade issues with our EU and member state counterparts, including EU Executive Vice-President Dombrovskis, German Vice-Chancellor Habeck and Italian Minister Tajani. The Government are seeking the practical changes needed to ensure smoother trade between the United Kingdom and Europe—for example, on mutual recognition of professional qualifications, which have already been mentioned.
Helen Hayes
Goods exports to the European Union are still 11% lower than in 2019, before the Brexit agreement took effect. Can the Minister confirm that, in seeking to grow the UK economy, the Government will take an evidence-based approach to the UK’s trading relationship with our nearest neighbours, and will take all possible measures to remove the barriers to trade that are holding our country back?
Mr Alexander
I thank my hon. Friend for her question and her observation on the character of trade in recent years. There has been better performance on services than on goods, but she is absolutely right to recognise the fall in goods trade with the European Union. Overall trade since 2018 has essentially flatlined. That is why the Government are determined to reset our relationship with the European Union more broadly. Within that broader objective, we will look specifically at the border in order to achieve less friction for trade.
Becky Gittins
Farmers in Clwyd East continue to raise concerns with me about trading barriers with the EU. They feel that the current arrangements disadvantage them, and that not enough has been done since we left the EU to facilitate trade between British farmers and EU countries. Will the Minister outline what steps his Department is taking to remove those barriers and get a better deal for the farming community of Clwyd East?
Mr Alexander
My hon. Friend is already establishing herself as a powerful voice for all constituency interests in Clwyd East. Alas, the concerns that she raises are not limited to that constituency. That is why, as part of the broader resetting of our relationship with the European Union, we are determined to tackle barriers to trade such as those she describes in relation to farmers, including through the negotiation of a UK-EU veterinary agreement that will help to reduce unnecessary border checks.
Mike Wood (Kingswinford and South Staffordshire) (Con)
I welcome the Minister back to the House and back to the Government Front Bench. On the final sitting day before recess, the Secretary of State slipped out an announcement that he expected trade talks to begin with a number of countries this autumn, and the Minister has just confirmed the intention to open talks with the European Union. When can we expect the Government to publish their negotiating objectives for scrutiny by the House ahead of those talks, as demanded by the Select Committee and committed to by the previous Government?
Mr Alexander
I am grateful to the hon. Gentleman for his kind words of welcome both to this House and to the Dispatch Box. I hope that we will be able to exchange in exactly this kind of constructive dialogue in the months and years ahead. Clearly, we inherited a number of open negotiating mandates from the previous Government—not least in relation to the Gulf Co-operation Council and to India—and we are carefully reviewing those mandates, but we have already been clear that, as well as resetting the relationship with the European Union, we are keen to pursue essentially a twin-track strategy, whereby we take forward the work in relation to those free trade agreements.
Yuan Yang (Earley and Woodley) (Lab)
The Minister for Industry (Sarah Jones)
I thank my hon. Friend for her question, and welcome her and her expertise to this House. As she knows, investment by private corporations was the lowest in the G7 for almost all of the last Parliament, and the new Government are determined to reverse that decline. That begins with economic stability, something every business we talk to is crying out for. It involves the development of our industrial strategy, the levers to encourage investment, the national wealth fund, the British jobs bonus and the Industrial Strategy Council, which will provide the infrastructure that investors can understand and deal with. Next month, we will host the international investment summit with 300 industry leaders, demonstrating our mission of long-term growth, and because there is not a moment to lose, I am going to Italy tomorrow to meet key Italian investors to the UK and show that Britain is back.
Yuan Yang
I thank the Minister for her remarks, and wish her the best of success on her trip tomorrow. One of Europe’s best-performing sites for foreign direct investment in the life sciences is the Thames valley, including my constituency of Earley and Woodley, and our local hospital trust—the Royal Berkshire NHS foundation trust—recently became the first in the country to be awarded for world-class excellence in its clinical research. Will the Minister meet with me, local life science businesses and hospital staff to discuss how to accelerate investment in our life sciences industrial cluster?
Sarah Jones
I thank my hon. Friend for championing such a vital sector—our most recent data shows that UK life sciences employs over 300,000 people, generating a turnover of over £100 billion. With the NHS back on its feet under this new Government, working hand in hand with life sciences, research institutions and others, we can drive the development of new treatments and help grow our industries. Of course, I would love to meet with my hon. Friend.
Robin Swann (South Antrim) (UUP)
The Minister has expressed the importance of life sciences. Can I seek her assurance that Northern Ireland is part of that trade mission as well, especially as it relates to my constituency? Also, regarding the Minister for Trade Policy and Economic Security’s statement about removing barriers to trade, can I ask this Government to ensure that there are no EU barriers to trade when it comes to promoting businesses in Northern Ireland? Those businesses want to thrive, flourish, and be part of this United Kingdom’s outreach in regards to business and investment across the United Kingdom and, indeed, the world.
Sarah Jones
Of course, Northern Ireland is incredibly important to our plans and to us. In opposition, many of us went to Northern Ireland and met with businesses. I certainly did: I met with the Chamber of Commerce and talked about the opportunities for the future in Northern Ireland. I will meet with the Secretary of State for Northern Ireland next week to talk about some of these issues, and I hope the hon. Gentleman will be reassured that we will do what we can to grow jobs, skills and investment and make sure there are no barriers to trade.
Adam Jogee (Newcastle-under-Lyme) (Lab)
The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)
We have already taken a number of steps to improve employment rights in this country. We have written to the Low Pay Commission to ask it to end the discriminatory age bands, so that all adults will be paid the same minimum wage rates. We have also asked it to look at including the cost of living when setting future wage rates, and have announced that we will repeal the unconscionable and unworkable Strikes (Minimum Service Levels) Act 2023, but there will be more. We will transform workers’ rights in this country, and will introduce the employment rights Bill within 100 days of taking office, as we promised.
Adam Jogee
I thank the Minister for setting out just how much this Government are on the side of workers in our country. Can I ask him to gently remind the Secretary of State that there is a pint waiting for him at the Bridge Street Ale House in Newcastle-under-Lyme from the owner, Grum Newbury? The people of Newcastle-under-Lyme believe in hard work, decency, respect and dignity at work, so can the Minister set out what this new Government are doing to end the exploitative use of zero-hours contracts in north Staffordshire and across our country?
Justin Madders
My hon. Friend is right: the explosion of zero-hours contracts in this country has been shameful. Over 1 million people are now on zero-hours contracts, and one in five of those people report that they would like to be able to get more hours of work, so we are going to end the uncertainty of zero-hours contracts. We are going to make sure that work pays, and we are going to give those people a legal right to a contract that reflects the number of hours they regularly work over a 12-week period.
Madam Deputy Speaker (Judith Cummins)
I call the shadow Secretary of State.
Kevin Hollinrake (Thirsk and Malton) (Con)
I welcome the Secretary of State and his Ministers to their places. The Secretary of State seems to imply that businesses are comfortable with his changes to the workplace, but this morning I and my fellow shadow Ministers met business representative organisations that are far from comfortable with the changes he is making, such as day one employment rights, a four-day week, a right to switch off and a higher and broader national living wage, as well as changes to business taxes, including in relation to business property relief, and the fair work agency. Does he not realise—do his Ministers not realise—that until he brings forward the detail on these plans, businesses’ recruitment and investment plans are completely on hold? When will he bring forward those plans?
Justin Madders
I thank the shadow Secretary of State for his question. I just remind him that he has to direct the question to the Minister responding—I am sure we will get there in the end.
I also remind the shadow Secretary of State that during the general election, the front page of The Times had 120 businesses supporting the Labour party in full knowledge of our plans to make work pay. We are consulting regularly and frequently—almost on a daily basis—with businesses about how the plans will work. I am afraid that the shadow Secretary of State has spent the summer putting out scaremongering statements about what this all means. In fact, the only statement he made over the summer on which I agreed with him was that his party deserved to lose the general election.
Kevin Hollinrake
The Minister talks about statements, so I will read him some. The Federation of Small Businesses says its members view these measures with “trepidation”. The Institute of Directors says that confidence is fizzling out, with the biggest one-month drop on record. The Recruitment and Employment Confederation says that these changes
“risked fuelling long, complex litigation”
for businesses defending themselves at employment tribunals. Will he—and the Secretary of State—at least consider exempting small and medium-sized enterprises from these ruinous, French-style regulations?
Justin Madders
Again, I have to point out that I am not the Secretary of State—perhaps one day.
We heard all these arguments 20 years ago with the minimum wage. Conservative Members were wrong about that, and they are wrong about this. I just hope they are a bit quicker to come round to realising that this country is going to prosper with improved workers’ rights, working in partnership with businesses to improve the economy for the benefit of everyone.
Gregory Stafford (Farnham and Bordon) (Con)
The Minister for Industry (Sarah Jones)
China’s role in the automotive industry is growing, and that invites risks and opportunities. We are working closely with other Government Departments, as the hon. Gentleman would expect, to analyse how this impacts the UK. Where we need to act, we will do so, and any action taken on Chinese electric vehicles has to be the right one, including for our UK industry.
Gregory Stafford
I thank the Minister for her response, but could she outline the Department’s wider strategy on challenging China’s global monopoly on critical minerals, including lithium, much of which is extracted by forced labour?
Sarah Jones
I thank the hon. Gentleman for his supplementary question. As I said, we are working closely with our colleagues across Government to make sure we have the right intelligence and can make the right decisions where we need to act. He will be aware that other countries are introducing tariffs and taking a range of measures. Our sectors are very different from those of other countries—we are not the same as the US or the EU—and we need to respond in the right way when it comes to electric vehicles. For example, 80% of the vehicles we manufacture in the UK are exported, so our challenges are different.
However, the hon. Gentleman is right to raise these important issues, including the need to look at critical minerals and supply chains, and at how we can ensure we are getting as many parts as possible from countries with which we want to have a different relationship. That is why we have set up things such as the solar taskforce to ensure that when it comes to solar panels, for example, we are using the supply chains as best we can to make sure there is not a global monopoly and that we are economically secure as a country.
Greg Smith (Mid Buckinghamshire) (Con)
What we have this morning is another chapter in the growing theme of what the Government said before the election and what they are doing after the election being entirely different things. The Chancellor of the Exchequer talked in May about reliance on Chinese EVs undercutting British workers and leaving us exposed, but by July she was talking about the benefits of trade with China. What we have seen in this Chamber this morning is that, while the rest of the world—the United States, Canada, the European Union—is acting on Chinese dominance in the EV market, the United Kingdom Government continue to dither. What is it to be: clear action on behalf of the UK automotive sector, or continued dither and failing to make a decision?
Sarah Jones
I do not know whether the hon. Gentleman is aware that until recently his party was in government, and inward investment from China grew over four times since 2014, so I will take no lessons from him on these issues. The automotive industry, which I work with closely and meet regularly, has not asked for what he suggested—
Sarah Jones
No, it has not. The hon. Gentleman is chuntering again from a sedentary position. It has not asked for that. This is something we are monitoring. We will work closely with the industry and do the right thing, and if we need to intervene we will intervene. As I said, the UK’s economy and industry differ very much from those of other countries, and 80% of UK auto production is exported. It is not that we have the risk of EVs in the other direction. The hon. Member for Mid Buckinghamshire (Greg Smith) needs to recognise the part that his Government played in the development of these matters over many years, and be reassured that we are working closely with our colleagues to make sure we do the right thing.
Patrick Hurley (Southport) (Lab)
The Secretary of State for Business and Trade (Jonathan Reynolds)
My Department’s four priorities are to reset our trade relations, deliver a new deal for working people, support small business and implement a mission-focused industrial strategy. In just a few short weeks, we have begun preparing no fewer than four Bills for the King’s Speech. I have attended the G7 trade summit, and set up the Horizon convictions redress scheme. We have ensured UK Export Finance support for the defence of Ukraine, changed the remit of the Low Pay Commission and organised an international investment summit for 14 October. I have spoken to my international counterparts, to all my colleagues in the devolved Administrations and to several hundred business leaders. That is how we will build the pro-innovation, pro-worker, pro-business economy that the British people voted for.
Patrick Hurley
I thank my right hon. Friend for that reply. This Government were elected on a platform to embed economic growth and break down barriers to opportunity. In the past couple of weeks, I have spoken to colleges and businesses across my Southport constituency, including our rightly famous Silcock’s family entertainment centre, to see how we can develop our skills policy to ensure that for towns such as Southport, the best days lie ahead. How will the Department work to support the next generation of entrepreneurs to ensure that our economic mission is furthered?
Jonathan Reynolds
I hope you will allow me, Madam Deputy Speaker, to pay tribute to my hon. Friend after what his community has been through, and the incredible way that he stepped up to represent that community. That is something we would all like to acknowledge.
The points that my hon. Friend makes are right: small businesses, entrepreneurs and start-ups are essential to our economic success, in Southport and in every part of the UK, and the support we will give them covers advice, guidance and training. On his point about skills, that is why we have established Skills England. If we want entrepreneurs to take real risks with their own property and income, we must give them stability. We cannot change policy every year; we cannot elect Liz Truss as Prime Minister and expect people to take those risks. The stability and consistency we will bring is as important as the policy environment we will create to do exactly what my hon. Friend says.
Jerome Mayhew (Broadland and Fakenham) (Con)
When dealing with the Post Office Horizon scandal, does the Secretary of State understand that by sitting on the letters informing Horizon victims that their convictions have been quashed, the Department is exacerbating the trauma of this terrible injustice? After two months in office, I understand that fewer than one in six letters have been sent. When does he plan to get a grip on the situation?
Jonathan Reynolds
I welcome the hon. Gentleman to his place. We have been in office for two months, and we have already set up the Horizon convictions redress scheme. Indeed, I was pleased to work with the former Minister, the hon. Member for Thirsk and Malton (Kevin Hollinrake), on creating the legal environment necessary to do that. The letters are an issue for the Ministry of Justice and its database. We have not sat on anything, and we have moved at pace to give people the compensation they deserve. We will continue to do that, and to work with those on the Opposition Front Bench to deliver what we all want to see.
David Pinto-Duschinsky (Hendon) (Lab)
The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)
The introduction of the minimum wage was one of the proudest achievements of the last Labour Government, but for too long the UK’s labour market enforcement system has been fragmented and ineffective. That is bad for workers and bad for the majority of businesses that want do to the right thing and comply with the law. That is why we will create a fair work agency to bring together employment rights enforcement, including of the minimum wage.
Madam Deputy Speaker (Judith Cummins)
I remind Members that these are topical questions, so can we have short questions and short answers?
Sir David Davis (Goole and Pocklington) (Con)
Jonathan Reynolds
I thank the right hon. Member for his role, which I have referred to in the past and has been important in these matters. I am not passing the buck to anyone; I am simply saying that it is the Ministry of Justice, rather than me, that sends those letters out. As of 30 August, 130 letters have been sent out, quashing more than 370 convictions. I think that is real progress since the election. It is not fast enough for me, and we will continue to push that. We are working closely with the Northern Irish and Scottish Administrations, because of the devolved nature of justice, exactly as he would expect. I can assure him that this matter was a priority for me in opposition, and it will continue to be a priority for me in government.
Mike Amesbury (Runcorn and Helsby) (Lab)
The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)
I would be happy to meet my hon. Friend to discuss the question about a banking hub in his constituency. As he will have heard in answers that I gave earlier, reform of the business rates system to tackle some of the egregious disincentives in respect of the need to invest in our high streets and the competition from online giants is something we took seriously in opposition and continue to take seriously in government. Colleagues in the Treasury are working hard to bring forward proposals to reform the business rates system.
Madam Deputy Speaker (Judith Cummins)
I remind Members to speak through the Chair.
Helen Morgan (North Shropshire) (LD)
The Minister for Trade Policy and Economic Security (Mr Douglas Alexander)
I assure the hon. Lady that the SPS agreement—the veterinary agreement, as it is called—is one of the priorities we are pursuing. That matter is being led by the Cabinet Office, as is the reset with the European Union. I assure her that dialogue is under way between the Department for Business and Trade, the Cabinet Office and the Department for Environment, Food and Rural Affairs. It is a priority. It will take time to reset, but I assure her that we are fully aware of the urgency.
Melanie Onn (Great Grimsby and Cleethorpes) (Lab)
Jonathan Reynolds
Good product regulation and public confidence in our system are important across the board for every sector of the economy. My hon. Friend will have seen the Product Regulation and Metrology Bill in the King’s Speech. It will give powers to the UK Government to regulate in a range of fields. What she raises is exactly the kind of area we will be able to consider and debate in more detail.
Dr Neil Shastri-Hurst (Solihull West and Shirley) (Con)
Jonathan Reynolds
I thank the hon. Member for his interest in this incredibly important issue and the work, which he will be aware of, that ensured that we got to this point. I think this is the biggest miscarriage of justice in British history, and the moves to provide some form of redress are extremely important.
We have moved at pace to put the scheme in place. We were able to do so because of the legislation we got through in the wash-up at the end of the last Parliament. The hon. Member will have heard what I said about the letters that we got out to get that information to people. [Interruption.] What was that? We will take that up offline. I welcome his interest and will continue to work with him on it.
Joe Powell (Kensington and Bayswater) (Lab)
Mr Douglas Alexander
The reset, of which we have spoken today, is fundamentally about turning the page and reinvigorating our alliance with our friends, neighbours and partners in the European Union. As well as securing a broad-based security pact and tackling barriers to trade, we aim to build stronger and wider co-operation in a whole range of areas including foreign and defence policy, irregular migration, law enforcement and judicial co-operation, while promoting climate, energy and economic security.
Sir Iain Duncan Smith (Chingford and Woodford Green) (Con)
I ask this question on the basis that I am sanctioned by the Chinese Government for having raised the evidence of genocide and slave labour in Xinjiang. We know that the vast majority of polysilicon is now produced in Xinjiang using slave labour. Will the Secretary of State give the undertaking that, as required under section 54(11) of the Modern Slavery Act 2015, there will be no use of any solar arrays that have polysilicon in them made under slave labour in Xinjiang?
Jonathan Reynolds
I give the right hon. Gentleman an absolute assurance that I would expect and demand there to be no modern slavery in any part of a supply chain that affects products or goods sold in the UK. He is right to say that under the Modern Slavery Act, which was put in place by a previous Conservative Government, any business with a turnover above £36 million needs to have a reporting regime around that. I promise him that, where there are specific allegations, I will look at those to ensure that. It is an area where we have existing legislation, and indeed we would go further if that was required.
Paul Waugh (Rochdale) (Lab/Co-op)
Jonathan Reynolds
I am grateful to my hon. Friend for that question. I meet businesses every day, and my most recent engagement was the breakfast we did on our plans to make work pay, where businesses themselves were pointing out the things they are doing because they value and care for their workforce and will invest in them. The issue in Rochdale he refers to is close to my heart as a Member of Parliament from just down the road in Tameside. I will of course have that meeting with him and continue to work closely with him to deliver on his objectives.
Sammy Wilson (East Antrim) (DUP)
As part of the Government’s net zero strategy, car manufacturers are expected to produce 22% of their cars as electric vehicles and face a £15,000 penalty for every car by which they fall short of that. The target is expected to be missed by 100,000 cars this year because of consumer resistance. The effect on the car industry is that producers are restricting supplies of petrol cars to retailers, and some are threatening to pull out of the UK market altogether. In the light of consumer resistance, will the Secretary of State look again at the target set, since consumers are clearly not going to be forced to purchase cars they do not want, and producers will be forced to try to get rid of cars they cannot sell?
Jonathan Reynolds
I am grateful to the right hon. Member for that question. The policy to which he refers—the zero emission vehicle mandate—and its penalties as we ramp up to the phasing out of petrol and diesel vehicles is actually a Department for Transport policy of the previous Government. We supported it, because there is no point in having an objective to phase out petrol and diesel vehicles without a corresponding ramping up of regulation to do that.
There is an issue with consumer demand, which affects all of Europe. We are working closely on that. Under the policies of the last Government, there are flexibilities—things that can be transferred from one financial year to the next. We keep everything under close review, but we are committed to the transition. That is essential to industry and consumer confidence and making sure that that happens. Every country in the world has similar policies. This is an ongoing transition, and we are absolutely going to make it work for British industry.
Dan Carden (Liverpool Walton) (Lab)
Jonathan Reynolds
I thank my hon. Friend for his question and for hosting me when I visited after the riots. I extend all my sympathies to the businesses affected. There is no excuse under any circumstances for looting shops, or in this case burning down a library. I was very much affected by my visit. He knows that we work very much in collaboration with the Association of British Insurers to ensure that claims are processed quickly. By now, I hope that businesses are aware that if they are underinsured or uninsured, help is still available to them under the Riot Compensation Act 2016, the details of which are on the gov.uk website.
Munira Wilson (Twickenham) (LD)
One Air is a small and growing cargo airline based in my constituency, which is having to deal with huge amounts of additional red tape and costs as a result of the Brexit deal and the end of reciprocal arrangements with the EU. Can the Secretary of State give an assurance that, when Ministers negotiate mutual recognition of professional qualifications, the aviation sector will be included?
Jonathan Reynolds
I can give the hon. Lady that reassurance. The aviation sector often complains about the lack of recognition, particularly relating to pilots. There is mutual interest in this area, and it could be a solid basis for negotiation. We can never promise the outcome of negotiations, but I can promise her that it is a priority for us.
Chris Vince (Harlow) (Lab/Co-op)
I welcome my right hon. Friend to his place. Before the election I met fruit growers in Nazeing and more recently farmers in Hatfield Broad Oak, both in my constituency, who raised concerns about hiring seasonal workers caused by Britain’s exit from the EU. What can his Department do to address that issue?
Jonathan Reynolds
I recognise the point that my hon. Friend raises. Our reforms to zero-hours contracts will not affect seasonal labour—we recognise that it is an important part of the labour market. Additional burdens have been placed on businesses because of Brexit, as he outlined. We do not want to relitigate the arguments of the past, but we believe that we can make tangible improvements for businesses in his area and for everyone.
Antonia Bance (Tipton and Wednesbury) (Lab)
My right hon. Friend will be aware of the disgraceful union-busting tactics and intimidation employed by Amazon against GMB members seeking union recognition at the Amazon warehouse in Coventry. Despite more than 1,000 votes in favour, union recognition was lost by just 28 votes. What steps is he taking to ensure that workers, such as the brave and determined GMB activists at Amazon, can more easily win union recognition?
Justin Madders
I draw the House’s attention to my proud membership of the GMB trade union. We believe that businesses work best when they give workers a voice through a recognised trade union. I would be very interested to hear more about what has happened at the Amazon warehouse in Coventry. The Government will look closely at that as part of our plan to make work pay. We will simplify the process and laws around statutory recognition.
Matt Western (Warwick and Leamington) (Lab)
Last weekend, hundreds of thousands of Oasis fans were left angered by the notion of dynamic pricing—a concern that we are seeing across the wider economy. Does the Minister agree that we need an urgent review of such price gouging systems?
Justin Madders
That certainly took the nation’s interest in more than one way. The Department for Culture, Media and Sport has already announced a review into it, and we will look at secondary pricing. The whole system needs urgent reconsideration, and we understand that the Competition and Markets Authority is looking into the matter, too.
Liam Byrne (Birmingham Hodge Hill and Solihull North) (Lab)
What thought has the Secretary of State given to attending the Williams inquiry? The Post Office scandal is unfinished business. It is now vital that we not only learn the lessons, but accelerate redress for the innocent and, crucially, punish the guilty fast.
Jonathan Reynolds
I am very grateful to my right hon. Friend for that question. As a new Secretary of State, the inquiry and the whole issue has affected deeply how I believe accountability and power should be considered in the roles we have as Ministers. It comes on the back of what we heard about Grenfell yesterday, and what we have heard about Bloody Sunday and Hillsborough. I believe that, although this is essentially a legacy issue, it is exactly the agenda that we have on coming into these jobs. The future of the Post Office must be linked to the inquiry not just in terms of redress, but in how the business model works better for sub-postmasters. I do not believe that this has been put into the public domain yet, but I have received a request to attend the inquiry. I will, of course, do so, and believe it is an essential way to put across what we will take from that inquiry and our plans for long-term reform in the future.