The Parliamentary Secretary, His Majesty’s Treasury (Emma Reynolds)
I beg to move,
That this House has considered the International Investment Summit.
I am delighted to open this debate on the Government’s inaugural international investment summit, which we hosted at the Guildhall in London on Monday. Leaders of the world’s biggest companies, from Alphabet and BlackRock to Goldman Sachs and Novo Nordisk, came from all corners of the globe to meet Government Ministers and to listen to what our new Government had to say. Our message at the summit was clear: the UK is open for business once again. We have turned the page on the stagnation and instability of the previous Government, and in just over 100 days, this Government have put growth front and centre of our agenda and reassured investors that we will create the very best conditions for them to invest and to grow their businesses, restoring the economic stability and confidence for which businesses have been crying out for too long.
The Prime Minister and the Chancellor made it clear that the UK has an enormous amount to offer, as did all the high-profile investors who spoke at the summit, including esteemed business figures such as Larry Fink, Eric Swartz, Ruth Porat and more. We have made clear our commitment to growth and restored economic stability, and we have given businesses the confidence that they need for the long term. Businesses are safe in the knowledge that the UK at last has a Government whose central mission is to grow the economy and stimulate private investment, thereby ending the chaos and churn of the last 14 years.
As both the Prime Minister and the Chancellor have set out, increasing investment into the UK is the Government’s No. 1 priority to drive growth. Our mission-driven approach allows us to think in terms of years, not weeks, and to commit to the hard yards required to break down the silos that have too often prevented effective government and got in the way of real growth-driving change.
This is about ambitious policymaking for the long term, not sticking-plaster politics. As the Chancellor said earlier this week:
“If the challenge is growth, investment is the solution.”
I am delighted to say that, as a result of the stability dividend introduced by this Government, we announced a record-breaking £63 billion of shovel-ready investments across the country—more than at any previous summit, and more than double the total of last year’s summit—from global companies such as Eli Lilly, ServiceNow, Holtec and many others.
Dr Luke Evans (Hinckley and Bosworth) (Con)
I welcome the Government’s success. Could the Minister tell us the proportion of that investment that came into play before the election?
Emma Reynolds
The agreements were reached in the lead-up to the summit and at the summit itself. I am glad that the hon. Gentleman joins us in congratulating the new Government on securing £63 billion of shovel-ready investment. I lost count of the number of Prime Ministers, Chancellors and Home Secretaries we had under his Government. I was working in the private sector at the time, and I often heard from businesses that said they did not have the stability, or even the predictability, of Government policymaking.
Emma Reynolds
I will not have a cross-Chamber discussion with the hon. Gentleman. I am sure he will make a contribution to the debate.
This Government are determined to increase the number of good, well-skilled jobs, to embrace the opportunities of technology and innovation, and to improve productivity across the country. At the international investment summit, we demonstrated that the UK has tremendous strengths. We have a dynamic, ambitious and globally connected economy that has long been at the forefront of global exploration, invention and innovation. We have a global language, a central time zone and a renowned legal system. We have a high-spending consumer market that benefits from an open economy. We have trade deals with over 70 countries, and we have world-class talent supported by our globally recognised higher education system, with four of the world’s top 10 universities.
One of my favourite moments of the summit was a panel chaired by our fantastic Secretary of State for Culture, Media and Sport on the creative industries and sport. I was delighted to have a photograph with Gareth Southgate, which I showed to my boys when I got home. In all seriousness, Gareth Southgate talked about how the Premier League was once just an idea and how it has been built and marketed into a world leader, creating great investment into our economy. I am sure the whole House will support that sentiment—
Emma Reynolds
The shadow Secretary of State is demonstrating that from a sedentary position—it is the first time I have said that in a debate for some time.
When we took over from the last Government, we recognised that there were issues we needed to address to improve the UK’s competitiveness. That is why we have already announced a series of steps to improve our business environment, such as driving through planning reform to get Britain building, removing the ban on onshore wind farms and giving the green light to key solar and data centre projects. We are also undertaking a pensions investment review, which the Chancellor has asked me to lead, to harness the potential of our £2 trillion pension industry to unlock new capital for our innovative businesses, to drive growth and to improve outcomes for future pensioners.
We have launched Skills England to boost the nation’s skills and fill job vacancies by bringing together businesses, trade unions, mayors, universities, colleges and training providers. We are also resetting our relationship with our closest partners in the European Union.
Liam Byrne (Birmingham Hodge Hill and Solihull North) (Lab)
I, too, congratulate the Government on an extraordinary achievement in securing £63 billion-worth of investment, which is a tremendous vote of confidence not only in this Government but in this country. My hon. Friend is right to say that a big part of this is the stability dividend, but she is also right to say that resetting our relationship with our closest neighbours in Europe must also be a big source of appeal. Did she hear that feedback at the investment summit?
Emma Reynolds
Indeed, I did. Business wants the Government to take a pragmatic approach, not an ideological approach, to our relationships with our main trading partners, and that is exactly what our new Government are doing.
I am pleased to report that we are not resting on our laurels; far from it. On Sunday, the Business Secretary announced the launch of an industrial strategy advisory council, which will be chaired by Clare Barclay, the CEO of Microsoft UK. The Business Secretary also announced our modern industrial strategy Green Paper, setting out eight growth-driving sectors: advanced manufacturing; clean energy industries; creative industries; defence; digital and technology; financial services; life sciences; and professional and business services. This is not about picking winners; it is about building on the UK’s unique strengths and untapped potential to enable our already world-leading services and manufacturing industries to adapt, grow and seize the opportunities to lead in new and emerging industries.
At the summit, the Prime Minister set out the Government’s commitment to a pro-growth approach to competition and regulation, to create a dynamic business environment that will strengthen our foundations and help deliver our growth mission and industrial strategy. As investors made clear, they have a choice of where to invest. We must not rest on our laurels; we must make sure that we forge ahead with these policies, because we need investors to make a positive choice to invest in our country. As one private sector speaker said at the summit, we do not want investors just to invest; we want them to place a big bet on investing in the UK.
The Chancellor also confirmed two new innovative measures to ensure that our public finance institutions can better catalyse billions of pounds in private investment. We turbocharged the UK Infrastructure Bank to become the national wealth fund, which will have £27.8 billion to catalyse investment that would not have otherwise taken place. We have also launched the British Business Bank’s new pathfinder British growth partnership, a vehicle to crowd pension fund investment and other institutional investment into venture capital funds and innovative businesses.
We have committed to bringing forward a tax road map, long demanded by businesses across the economy, at the Budget. This will give businesses the certainty and predictability to plan for the future. As the Chancellor has already made clear, we will cap the rate of corporation tax at 25% for the duration of this Parliament. Gone are the days when a Government—the previous Government —would announce a decrease in corporation tax, then announce an increase and then, months later, reverse the decision again at the next fiscal statement. We want to ensure that businesses have predictability. We have also said that we will maintain our capital allowances offer, with full expensing and a £1 million annual investment allowance.
We will also reform and turbocharge the Office for Investment, which will sit under our new joint Treasury-Department for Business and Trade Investment Minister, Poppy Gustafsson, the founder and former CEO of Darktrace. This is a clear demonstration of the Government’s commitment to better serving the needs of investors and breaking down the silos between Departments, which have too often prevented transformative Government policy.
We are determined to drive the transformational investments that the country so desperately needs to fulfil its economic potential. Such measures, introduced within just 100 days, show that this Government are not just about warm words; we mean business, in every sense of the phrase.
This week’s summit was a major vote of confidence in the UK’s economic future and in this Government’s commitment to realising it. The investments and partnerships forged at the summit will have lasting impacts, driving growth, innovation and sustainability for years to come. It was not just a one-off event; it was a first milestone in our ongoing work to build a deep and meaningful partnership with business, drive economic growth and create good jobs for working people up and down this country at all levels of society. As we move forward, let us work together across the House to ensure that the benefits of these investments are felt by all our citizens across every region of our great nation.
Before I finish, I want to say that the particular highlight of the summit for me was the evening reception at St Paul’s, at which His Majesty the King was present and at which many of us were delighted to hear Elton John, who had some very warm words to say about our new Government. He said something like, “We’ve been in the doldrums for the last few years, but now we have a new Government under the leadership of a new Prime Minister and things are looking up.”
As the Chancellor made clear in her closing speech at the summit, since taking power this Government have put unlocking private investment at the heart of everything we do. Our investment summit demonstrated our commitment to growth and that the UK is once again open for business.
Madam Deputy Speaker (Judith Cummins)
I call the shadow Secretary of State.
Kevin Hollinrake
There is no doubt that we have been through a difficult time, given the effect of covid and the cost of living crisis on a services economy, but the right hon. Gentleman will acknowledge that back in 2010 the deficit was more than 10%, whereas today it is only 4%. In real terms, adjusted for inflation, that is a difference of about £160 billion, the equivalent of the health budget. The inheritance left for the present Government is much better than the one we received in 2010.
Emma Reynolds
The shadow Secretary of State is being generous to a point. I suggest kindly that in 2010 the outgoing Labour Government did not leave a £22 billion in-year hole in the public finances, as the Conservative Government bequeathed to us.
Kevin Hollinrake
The Minister is a very sensible person with experience both in the private sector and in politics, so I am surprised that she mentions that figure. Of the £22 billion, £9 billion was a result of her Government’s actions in lifting public sector pay without any commensurate productivity improvements and in scrapping the Rwanda scheme. It is fake news to say that there is a £22 billion black hole, I am afraid, and the Minister absolutely knows it.
There is no doubt that there are tough spending decisions and tough choices to be made, but it is very disappointing that one of the Government’s tough choices has been to scrap the winter fuel allowance. Let us see what their other choices will be.
Emma Reynolds
I wonder whether she would be tempted to tell us about her favourite pub in Bournemouth—or whether there are any bears around.
Jessica Toale
There are no bears, I am afraid, but I will get to that.
Bournemouth will benefit massively from the innovation and investments that the investment summit has brought in. I know that my constituents will be keen to hear how our local businesses and our high street, and even their bills, will benefit from the summit.
I want to take the opportunity to pay tribute to my predecessor, Sir Conor Burns. He served the constituency for 14 years, making it his home following his election in 2010. As well as serving as a Minister, Sir Conor was passionately dedicated to our local schools, bringing in investment for their improvement and improving opportunities for local young people—a tradition I am keen to continue. Many hon. Members will also know that Sir Conor was proudly devoted to the late Mrs Thatcher. In his own maiden speech, he stood in the same place that Mrs Thatcher stood to give hers, so perhaps the greatest tribute I can pay to him would be to continue that tradition in the same place here. I wish him all the best of luck in his onward endeavours. While he and I may have differed drastically in many of our views, we are here to provide a voice for the people of Bournemouth West in Parliament, and that is a role I will continue. I want to put on record my thanks to the great people of Bournemouth West for giving me that opportunity to do so under a Labour Government.
Bournemouth is not natural Labour territory, and I am really honoured to have won the trust of the people of Bournemouth in becoming not just its first Labour MP, but its first female MP. That is a monumental sign of the real changes we have seen in the constituency that are affecting it now and shaping its future. Yes, we are a beautiful seaside town, with white sand beaches and picturesque parks—and our hotels, hospitality and cultural venues, and English language schools have attracted people for generations to visit, but also to seek a better quality of life—but there is so much more.
Bournemouth is a relatively new town, but parts of my constituency such as Kinson were mentioned in the Domesday book. Scratch the surface just a little bit, and you will find a growing and vibrant community of innovators and creatives. We have world-leading graphic effects and post-production companies. We have a vibrant community of small businesses and vibrant high streets in Winton and Westbourne, with businesses that are integrating sustainability and also community into their business models. We have a burgeoning tech sector, with leadership in fintech, gaming and active travel. We have two world-leading universities and an excellent further education college, feeding that ecosystem and making sure our young people are equipped with the digital and creative skills they need to succeed in the 21st century—and I could go on.
Of course, there are challenges. Like all seaside towns, we have seen our town centre decline. More than a decade of cuts to public services has meant that people now struggle to get an NHS dentist. Crime and antisocial behaviour are at the forefront of people’s minds as, for me, are parents who will not let their daughters go into the town centre at night. Knife crime has destroyed lives, the housing market too often locks out young people and young families, and do not even get me started on sewage.
But I feel hopeful about the future, and I feel hopeful because of the collective spirit that I see every day in my constituency, with people such as Fran and Jesse at the Henry Brown centre and Kerry and her team at the Bourne community hub working against the odds to build their communities and transform lives in neighbourhoods such as West Howe and Alderney; all the community groups and resident groups fighting hard to improve their local areas and campaigning to protect our ancient heathland and our precious coastline; and, of course, all of the businesses giving it a go, getting into our high streets and the town centre, breathing life back into empty shops and revitalising our heritage buildings.
This is all really exciting stuff and I know that, with a new mission-led Government, our town can and will be the safe and thriving hub it once was. I know that kids in West Howe can and will have the same opportunities that our young people in Talbot Woods do to get a world-class education in their schools, colleges and universities. I want graduates who fall in love with Bournemouth to find great jobs and affordable housing so that they stay and build their lives there. I want all of our businesses to thrive in the vibrant ecosystems that we are now developing, and families in Wallisdown to get the support they need in their schools and not to worry about getting a dentist or a doctor. All of our residents, regardless of age or income, should feel proud of their town and their local neighbourhoods.
Three out of four people in my constituency at this general election voted for change. They did not all vote for me, but delivering that change is a responsibility I now embrace. I want to use it to build a better politics and a fairer future where everyone feels like they have a stake. So I am very excited and looking forward to working with the brilliant people of Bournemouth West and our mission-led Government to build the shared future and reignite this sense of hope not only in our special seaside town, but across the whole country.
The Minister for Industry (Sarah Jones)
The hon. Member for Grantham and Bourne (Gareth Davies) was doing so well. [Laughter.] He was doing so well in the first half of his comments and then he returned to the same old tired lines that got the Conservatives defeated in the general election.
I am so pleased to be closing this debate today, which in a parliamentary context draws to a close a hugely positive and successful week for the United Kingdom. I thank all hon. Members who contributed to the debate. I am disappointed that only one Conservative MP managed to make it here to speak in the Chamber and that nobody from the SNP managed to come. I am surprised that they are not here to welcome the week we have had so far.
The Prime Minister made this Government’s guiding mission clear from day one: we will go for growth at every opportunity, and we are doing that in spades. A week ago today, we launched our landmark Employment Rights Bill to create more secure employment and a happier and more productive workforce. On Monday, we launched our industrial strategy Green Paper, something business has been crying out for, which lays strong foundations for 10 years of growth and investment in our most important sectors. Also on Monday, the Prime Minister hosted some of the world’s biggest investors to show them why, under this growth-driven Government, UK plc will be a blue-chip company that they should invest in. As was mentioned, Elton John was there to speak. I should tell the House that he took no fee—he took no fee. He wanted to come and celebrate with us the commitment of companies from across the world coming to the UK.
Before I talk a bit more about the investment summit, I want to pay tribute to the Members who spoke today, in particular those who made their maiden speeches. As someone who wells up quite often and quite easily, this was a difficult debate for me. There were many moments when we looked up at the Gallery and saw parents and other family members wiping tears from their eyes. It was lovely to see.
I loved the motto of my hon. Friend the Member for Ossett and Denby Dale (Jade Botterill). Working hard and talking straight is a great motto for this new Government.
My hon. Friend the Member for Congleton (Mrs Russell) gave us a wonderful tale of her constituency and its people, including a slightly odd story, I have a say, about Beartown. [Laughter.] But there we go; that’s Congleton!
My hon. Friend the Member for Buckingham and Bletchley (Callum Anderson) gave a great speech, telling us about the importance of Bletchley Park and its influence not just in world war two but on the technical age we are in today, and talking about the advanced manufacturing in his constituency.
My hon. Friend the Member for Banbury (Sean Woodcock) was a Labour Student. I do not know how many members of the Cabinet were Labour Students —I was not—but it is quite a good stomping ground for future Cabinet members. He paid wonderful homage to the people and the place of Banbury.
Diolch to my hon. Friend the Member for Bangor Aberconwy (Claire Hughes) for an incredibly beautiful speech about her constituency, its proud industrial history, and the ingenuity and innovation that it still shows.
My hon. Friend the Member for Bournemouth West (Jessica Toale) spoke without notes and made a really impressive speech. The passion with which she wants to reignite pride in her town and in our country was very well understood.
My hon. Friend the Member for Earley and Woodley (Yuan Yang), who has incredible experience, not least working at the Financial Times, talked about the life sciences in her constituency and how important they are. I look forward to meeting her next week to talk about that more.
My hon. Friend the Member for Vale of Glamorgan (Kanishka Narayan) also spoke without notes. He spoke lovely words about his predecessor, told a lovely story about the history and beauty of his constituency, and paid tribute to his constituents. Many of us have spent many happy days in Barry island—I certainly have.
At the investment summit, £63 billion of investment was announced, more than double what was raised at the Opposition’s summit last year. Iberdrola doubled its wind energy investment in the UK from £12 billion to £24 billion; there was £10.5 billion from Orsted and Greenvolt, and more than £200 million from SeAH Wind. There was £8 billion for carbon capture, which will create 4,000 jobs and support 50,000; £2 billion from Octopus Energy and £1.3 billion from Macquarie for solar projects; £6 billion of new money for data centres, on top of the £10 billion recently committed by Blackstone and £8 billion from Amazon; £1 billion for DP World’s London Gateway, and £200 million for a new freight ferry terminal at the Port of Immingham; more than £300 million for Holtec’s advanced engineering plant in South Yorkshire; £500 million from BMW Group for battery energy storage; more than £2 billion for rail and air projects from Network Rail and Manchester Airports Group respectively; and £400 million for life sciences and healthcare innovation. Moreover, our fantastic Imperial College London will put £150 million into a new R&D campus.
On top of these transformational investments, we have proved our credentials as a pro-business Government. Thanks to the Chancellor’s announcement that the UK Infrastructure Bank would be turned into the national wealth fund, we are catalysing tens of billions of pounds of private investment into the UK’s clean energy and growth industries, including green hydrogen, carbon capture and gigafactories. We are establishing an industrial strategy advisory council, led by Clare Barclay, to help deliver the pro-business environment on which our industrial strategy will depend. We are creating a British growth fund that will fuse pension investments and venture capital markets. We are expanding the Office for Investment to ensure that international investors receive the information and guidance they need to invest in Britain, and we are cutting red tape to remove redundant reporting requirements, while making it easier for companies to re-domicile themselves in the UK—and all this within 100 days of our taking office.
From more rights for a more productive workforce, to a pioneering industrial strategy for our sectors of the future, to scores of investments worth tens of billions of pounds, this Government are delivering change. The last Government’s scattergun approach to growth left our country starved of investment, economically divided and struggling to maintain our competitive edge in the global economy. Growth was anaemic; wage growth flatlined on their watch. Productivity was down; the gap between France, Germany and the United States doubled since 2008. We saw the lowest investment share as a percentage of GDP in the G7, and we ranked 27th out of 30 in the OECD last year. That is on top of the state of the public finances that the Conservatives left us, with public services starved of investment, millions of days of work lost to strike action, and rocketing debt.
However, in just 100 days this Government have already laid down the blueprint for 10 years of growth through our biggest and most innovative sectors; secured £63 billion in new investments that underline our potential as a world leader in renewable energy, life sciences, technology and clean growth; and brought forward a raft of reforms to create a happier, more secure and more productive workforce.
Adam Jogee (Newcastle-under-Lyme) (Lab)
The Minister is making a very interesting and important speech, and she has set out exactly what this Government are doing to benefit my constituents. Could she find some time to meet me so that we can discuss how together we can ensure that the people of Newcastle-under-Lyme and Staffordshire more widely can benefit from the investment secured at the summit this week?
Sarah Jones
I am always happy to meet and to talk about what more we can do in our next 100 days, and indeed—we hope—our next five to 10 years in government.
Some Conservative Members have questioned whether some of these investments were teed up under the last Government. They know perfectly well that business confidence can rapidly change investment decisions. All the announcements included are of new, firm commitments being made by companies to invest in the UK either when final investment decisions have been taken or when announcements have been accelerated or unlocked because of actions taken and support provided by this Government.
I am sure that Conservative Members will have seen the letter, published in The Times at the start of the week, from five of the world’s biggest banks, joined by private equity firms, insurers and tech giants, saying that it was
“time to invest in Britain”,
and that Britain’s “greater stability” had increased its attractiveness to investment, which was of course a reference to Labour’s decisions when we took office. They concluded:
“We are optimistic about the future of the economy, and believe it is time to invest in Britain.”
The fact that scores of investors attended our summit on Monday, with tens of billions of pounds being firmly committed to new projects, shows that under this Labour Government, business and investors have a great deal of confidence in our growth mission.
Kevin Hollinrake
The Minister is talking about confidence, but if confidence is rising, can she explain why the Institute of Directors has stated that confidence has gone from plus 30 in June to minus 7 today?
Sarah Jones
The shadow Minister knows that we are working very closely with businesses, business organisations and others to ensure that the changes we bring in grow our economy. We have huge confidence from a raft of people. For every quote the hon. Gentleman can find, I can find 10 that say the opposite. He can pick on one if he wants to, but I suggest that £63 billion does not lie. Let us not forget that our summit on Monday was organised in a matter of weeks. The Conservative party had two years between their investment summits, yet we secured double the amount of investment compared with its summit last year.
To respond to a couple of other points, the Lib Dem spokesperson, the hon. Member for St Albans (Daisy Cooper), rightly mentioned business rates. We are looking at that and will deliver on the commitments in our manifesto. She was right to raise skills, which are a huge challenge for us. We see huge opportunities for growth across the entire country but we must ensure that we have the skills landscape, which is why we are setting up Skills England. She also talked about the national wealth fund and its ability to crowd in funding for the green sector and green technologies; it absolutely will do that.
To summarise, across the House we are united in the belief that Britain needs to facilitate growth. Let us face it, we have been severely starved of it. Only through growth can we keep taxes lower for working people, invest in our public services and create secure, well-paid, high-skilled jobs. Of course, this is against a backdrop of the poor economic inheritance left by the Conservative party, who lurched repeatedly from Prime Minister to Prime Minister, gave us seven growth plans in 14 years, made millions of people pay the price of a Trussonomics Budget and saddled the people of Britain with a low-growth, low-productivity, low-investment economy. The steps that this Labour Government have taken in just 100 days show that we are overturning the Conservatives’ legacy of inaction, stagnation and deterioration, and creating a country of stability, innovation and prosperity.
Question put and agreed to.
Resolved,
That this House has considered the International Investment Summit.