(3 weeks ago)
Commons ChamberRead Hansard Text Read Debate Ministerial Extracts
Abtisam Mohamed (Sheffield Central) (Lab)
Sojan Joseph (Ashford) (Lab)
David Pinto-Duschinsky (Hendon) (Lab)
The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)
Revitalising our high streets is a priority for this Government, and I and the Secretary of State have spoken to colleagues across Whitehall to ensure that we are working together to create better conditions over the long term for high street businesses to thrive. That means addressing antisocial behaviour and crime, rolling out banking hubs, stamping out late payments, empowering communities to make the most of vacant properties, strengthening the post office network, reforming the apprenticeship levy and, as the Chancellor confirmed yesterday, reforming business rates.
Abtisam Mohamed
There are just short of 5,500 businesses in Sheffield Central, and more than 80% of them are micro-businesses employing fewer than 10 employees. These are the engines of local economic growth in our area, and they provide vital services in our community. Many businesses in my constituency welcome yesterday’s announcement of permanently lower business rates for hospitality, retail and leisure properties from 2026-27. Will the Minister outline what further steps he is taking with the Chancellor to create a fairer business rates system, so we can ensure that our high streets thrive permanently?
Gareth Thomas
I am grateful to my hon. Friend for her question, and I think this is the first time I have had the chance to congratulate her on her election to this House. She is absolutely right that if we are to see our high streets thrive, we need to ensure there is a genuinely level playing field for businesses online and those on the high street. As the Chancellor announced yesterday, to deliver that pledge we intend to introduce permanently lower tax rates for retail, hospitality and leisure properties from 2026-27. To fund that, we intend to introduce a large business multiplier from 2026-27, which will apply a higher rate on the most valuable properties. That will capture the majority of large distribution warehouses, including those used by the online giants. However, we want to go further, so the Chancellor published a discussion paper yesterday asking businesses for further ideas on the reform of business rates.
Sojan Joseph
Small and independent shops are the lifeblood of our high streets, and they make the communities in my Ashford constituency special. Far too many high street businesses have been feeling the squeeze over recent years, which has led to empty units being an all too familiar sight. I welcome the measures announced in yesterday’s Budget, particularly the reform of business rates. Will my hon. Friend update the House on what the Government are doing to empower local communities to acquire empty units?
Gareth Thomas
Again, I congratulate my hon. Friend on his election to this House. Colleagues across Whitehall are bringing forward plans to introduce high street rental auctions, which will bring vacant units back into use. That should make town centres more accessible and affordable for tenants. We will also take steps to crack down on antisocial behaviour. We saw a huge increase in antisocial behaviour and crime in our high streets under the Conservative party, and we are determined to take steps to crack down on that.
David Pinto-Duschinsky
I thank my hon. Friend for his previous answers. We are blessed with some fantastic high streets in Hendon, such as Mill Hill Broadway, Station Road and the High Street in Edgware, Watling Avenue in Burnt Oak, Brent Street in Hendon and Vivian Avenue in West Hendon. However, when I talk to business owners, they all too often tell me that they are struggling to find and retain the staff they need to grow successfully. What steps is the Department taking to make sure small businesses can get the skilled staff they need not just to survive, but to thrive?
Gareth Thomas
I welcome my hon. Friend’s question, and I know the high streets in his constituency that he mentioned, as they are very close to Britain’s greatest constituency. He will be aware that we have already taken steps to help businesses recruit more skilled staff. It is one of the reasons why we have established Skills England. We have also taken steps to reform the apprenticeship levy, and earlier this week the Prime Minister brought forward plans to help people get back to work.
Mims Davies (East Grinstead and Uckfield) (Con)
The anti-growth coalition on Mid Sussex district council, led by the Lib Dems, Labour, independents and Greens, is bringing in Sunday, bank holiday and evening town centre parking charges on top of a 30% rise, and there is the sword of Damocles of possible village car parking charges. Will the Minister reiterate to councils that are determined to derail his growth mission that such draconian measures on our high streets will do exactly the opposite of what he and his Budget are apparently looking to achieve, and will he perhaps meet them?
Gareth Thomas
I gently suggest to the hon. Lady that those making up the anti-growth coalition are sat on her side of the House, and I gently point out to her that the highest number of businesses to go bust for 30 years was under the Conservative party last year. I would also happily ask her to use her influence with the Conservative-led council in my constituency, which is bringing in parking charges that will certainly damage the night-time economy.
Jim Shannon (Strangford) (DUP)
I welcome some things that the Minister has referred to regarding high street businesses, and I thank him for that, but there are many other matters. For example, in Newtownards family businesses make up a great many of the attractive high street businesses, such as Wardens, Knotts Bakery and the family butcher, and they are important, as they are in Ballynahinch. Has the Minister had the opportunity to talk to the chamber of trade in Newtownards, which is working well? Other chambers of trade in my constituency can also contribute, so has there been an opportunity to speak to them to get their ideas about the way forward?
Gareth Thomas
The hon. Gentleman is an assiduous champion for his constituency in this House. If he wants to bring his chamber of commerce to meet me to discuss issues in his constituency in more detail, I will happily make time to meet him and them.
Mr Speaker
We are 10 minutes gone and still on Question 1. We need to speed up a little bit. If the Minister could look at me, that would be helpful, so that we are going through the third person. I know that Mr Shannon is popular, but even so, it should go through me. I call the Liberal Democrat spokesperson.
Clive Jones (Wokingham) (LD)
In my constituency, the number of people shopping on our high streets has not returned to pre-covid levels, and we have lost anchor stores such as Marks & Spencer, and several banks. The Government urgently need to save our high streets, but the reduction in retail, hospitality and leisure business rates relief from 75% to 40% will come as bad news for thousands of businesses. When will the Government deliver a fundamental reform of business rates to save our high streets and end the penalising of productive investment?
Gareth Thomas
I am grateful for your guidance, Mr Speaker. While the hon. Member for Strangford (Jim Shannon) is popular, you are much more important.
I gently point out to the hon. Member for Wokingham (Clive Jones) that we have started the process of reforming business rates. We are introducing permanently lower rates for retail, hospitality and leisure from 2026-27. We have listened to businesses and kept business rates relief, and we are opening up opportunities for businesses to come forward with ideas for future reform of business rates.
Ian Lavery (Blyth and Ashington) (Lab)
The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)
The Government are committed to strengthening the collective voices of workers and restoring the principle that work should always pay. That is why we introduced the Employment Rights Bill, which will restore the school support staff negotiating body and introduce a framework for a fair pay agreement in adult social care. Combined with other measures in the Bill, that will empower workers, unions and employers to come together to negotiate fair pay, terms and conditions.
Ian Lavery
I thank the Minister for that answer. It was fantastic of the Labour Government to bring in the Employment Rights Bill within their first 100 days—an absolutely brilliant achievement. Experts say that sectoral bargaining is a force to be reckoned with for both employees and employers, so what plans might the Government have to extend sectoral collective bargaining in other sectors of the economy?
Justin Madders
My hon. Friend is right to say that there is plenty of evidence worldwide that collective bargaining improves terms and conditions and the overall vitality of the economy, but we must start somewhere. About 5% of the entire working population are employed in adult social care, and with a 25% turnover rate and rampant abuse of zero-hours contracts and the minimum wage laws, we felt that that sector needed the most attention first. We must make a concerted effort to drive up working conditions, because those who work in that area have been undervalued and underappreciated for far too long, and that has to change. We must focus on getting it right in adult social care, and we will see where that takes us.
John Cooper (Dumfries and Galloway) (Con)
Undoubtedly, Government legislation is empowering the unions—we saw that this week when the Secretary of State for Scotland was unable to meet CBI Scotland, an important body, because he could not enter his own building because of a picket line. We read in the papers this morning that ASLEF, a rail union, insists on using fax machines and will not allow its members to use email. How is that helping collective bargaining?
Justin Madders
I have to educate the hon. Member on what trade unions do. ASLEF is not a union in the adult social care sector, which is what we are talking about here. We want to work on a tripartite basis—business and workers, together with the Government—to get terms and conditions right. Given that we had the lowest increase in living standards on record under the Conservative Government, I would have thought that he would want to support that too.
Gareth Bacon (Orpington) (Con)
The Government’s impact assessment for the adult social care sector confirmed that collective bargaining will be very costly for business. If pay awards match those of junior doctors, the cost of the increased wage bill will be £5.8 billion, driving up business rates, reducing employment or hours, and imposing further costs on business. Can the Minister confirm when further collective bargaining will be rolled out, to which sectors, and by how much those businesses can expect to be clobbered?
Justin Madders
If the shadow Minister is complaining about the state of the adult social care sector, he should look to his own party and how the sector was left to rot for 14 years. The impact assessment says that the overall cost to employers will be 0.4% overall and, as the economic analysis says, the make work pay package will help to raise living standards across the country and create opportunities for all. I think 0.4% is a fantastic achievement to get such a deal. If he does not want to support improved working conditions for people, an end to fire and rehire and better maternity protections, he should continue to vote against the Employment Rights Bill, but I do not think his constituents will thank him for that.
Joe Morris (Hexham) (Lab)
The Minister for Industry (Sarah Jones)
We have made significant progress in developing a new industrial strategy and I am delighted to report to the House that we published a Green Paper on 14 October, setting out our plans for a modern industrial strategy. We have set our sights higher than the previous Government, we have thrown off their ideological shackles and we have worked in partnership with business and our colleagues across the nations and regions to set us on a path to a credible 10-year plan, delivering the certainty, drive and ambition that businesses need to invest in the UK.
Joe Morris
For 14 years, businesses in rural communities such as my constituency were ignored and neglected by the Conservatives in government. Will the Minister elaborate on how the industrial strategy will allow rural communities to share in the proceeds of growth?
Sarah Jones
The difference between a Labour Government and a Conservative Government is that we believe that growth needs to be felt in our communities, not just measured on a spreadsheet. I know that my hon. Friend is working hard in his constituency and is already campaigning on issues such as banking services, which are so important for our rural communities. He is right: the industrial strategy needs to be designed and implemented in lockstep with local leaders, mayors and devolved leaders across the country, alongside our wider plans for housing and skills, which of course will be part of the picture. I look forward to working with him on identifying the barriers to growth in rural communities so that we can break them down.
Mr Alistair Carmichael (Orkney and Shetland) (LD)
The development of marine renewable energy is getting close to commercial deployment. If we are able to get it across the line, it will bring with it a supply chain that we can build and hold in this country, with a view to exports across the world. That would surely be a great result for any industrial strategy. What will the Government do to ensure that their industrial strategy helps marine renewables reach full commercial deployment?
Sarah Jones
The right hon. Gentleman makes a really good point, and I would be happy to have a proper conversation with him about it. Marine renewables are a huge opportunity for us. We can build the supply chains across the country and, of course, Scotland is uniquely placed to take advantage of that. I would love to have a conversation about it.
Greg Smith (Mid Buckinghamshire) (Con)
When it comes to an industrial strategy, in the Labour Government’s first few months they have effectively shut down UK virgin steelmaking capacity, with no commitments to primary steel in yesterday’s Budget of broken promises. Unlike the United States and the European Union, the Government have failed to protect our car manufacturers against Chinese state aid. They have massively increased the costs to the very drivers of industry—real businesses—of employing people. Should the Government not call it their deindustrialisation strategy?
Sarah Jones
The challenge we have is that we have inherited the worst living standards growth during a Parliament in modern history. We have inherited huge challenges that we have to overcome, but we are looking to the long-term with our industrial strategy—[Interruption.]
Sarah Jones
I do not know whether the hon. Member for Mid Buckinghamshire (Greg Smith) has been paying attention, but we are developing a steel strategy, which the previous Government failed to do, with £2.5 billion of funding. We put a boost of £2 billion into our car industry only yesterday in the Budget, alongside £1 billion for the automotive sector and money for life sciences. We are developing an industrial strategy for the long term for the first time and we will not follow the Conservative party, which let our industries suffer and get to the crisis point that we are now having to deal with.
Greg Smith
The Minister mentions the car industry. Yesterday, after the Budget of broken promises, talking about the industrial strategy, Mike Hawes of the Society of Motor Manufacturers and Traders said:
“Delivering that strategy depends on the UK being globally competitive. Additional National Insurance Contributions will put massive pressure on the automotive supply chain which is predominantly SMEs.”
He described the lack of substantive measures to support the new car market as “hugely disappointing”, concluding that,
“the cost will soon be felt in reduced UK investment, economic growth and jobs.”
With such dire warnings so early on, is this not more evidence that Labour just does not get business and that its industrial strategy is in tatters before it has even begun?
Sarah Jones
For a Government who do not get business, it is surprising, is it not, that we got £63 billion of investment through the international investment summit—twice what the previous Government managed after two years of planning it? The Government are working very closely with the automotive industry. We know that the global situation is very difficult and I talk to Mike Hawes very often, which is why we put £2 billion of funding into the Budget yesterday. It is also why we are working very closely with the sector to create the conditions we need to transition to electric vehicles and to protect our industry in a way that the previous Government, frankly, failed to do.
James Asser (West Ham and Beckton) (Lab)
The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)
The Office for Product Safety and Standards within my Department has been working across Government and industry to protect consumers and understand the causes of any safety issues. That has included giving consumers clear information that enables them to purchase, use and charge products safely; assessing the compliance of manufacturers and importers to ensure that products are safe when placed on the market; and a programme of work to address the sale of non-compliant products available through online marketplaces, including e-bikes and their batteries. Last week, I visited the OPSS’s Teddington laboratories, where we launched the Department’s new “Buy Safe, Be Safe” consumer campaign.
James Asser
Two weeks ago, there was a fire in a 10th floor flat in Plaistow in my constituency. Thankfully, the quick reaction of the residents and neighbours and the good work of the London Fire Brigade meant that they were all able to be evacuated quickly and there were no serious injuries. Clearly, this could have been worse. Does the Minister agree that it is a perfect example of why we need to continue to work to make these batteries safer and run awareness campaigns, so that residents understand the safety issues and how they can be mitigated, and how the batteries can be disposed of if they need to get rid of them?
Justin Madders
My hon. Friend is absolutely right. Manufacturers must already ensure that products are safe and provide instructions for safe use, including safe charging. I pay tribute to the London Fire Brigade for the work it is doing on this issue. Unfortunately, as we have heard, there are far too many fires. That is why we launched our awareness campaign last week. We are hoping, through the Product Regulation and Metrology Bill, to make sure we have powers to keep up with technological developments and ensure that e-bikes can be sold safely to consumers in the UK.
Matt Turmaine (Watford) (Lab)
The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)
As the Chancellor announced yesterday, the national living wage will rise to £12.21 an hour, meaning that a full-time worker can earn an extra £1,400 a year. We have also announced the stopping of the use of minimum service levels and tackled late payments for the self-employed. Of course, we have now introduced the Employment Rights Bill, which will raise living standards across the country and provide better support for businesses engaged in good practice. It also makes good on our promise to the British people that we will now make work pay.
Matt Turmaine
I thank the Minister for his answer. In my constituency of Watford, many people are employed in the hospitality, retail and construction sectors and, with a big hospital, in the health and social sector. Will the Minister confirm that the Government’s Make Work Pay plan will bring long-lasting benefits to them and to other workers?
Justin Madders
Absolutely. We are determined to ensure that the particular sectors that my hon. Friend mentioned, where low pay and insecurity are rife, will benefit. We are working closely with businesses and employers across the spectrum to ensure that we get the proposals right because, for too long, insecurity and low pay have been rife in the UK economy. That has to change.
Jerome Mayhew (Broadland and Fakenham) (Con)
After receiving millions from the trade union paymasters for its election, Labour is rewarding them with a package of 1970s, French-style workplace regulations, which will increase the cost of doing business in the UK to the tune of £5 billion a year, disproportionately falling on SMEs. That is before the £25 billion body blow to business delivered by the Chancellor yesterday in her anti-business Budget of broken promises. Does the Minister agree with the Office for Budget Responsibility that this Government’s decisions will make workers poorer, not richer, as increased employment taxes are passed on in lower wages, and that business investment will fall, not rise, as a direct result of this Government?
Justin Madders
I find it incredible that the Opposition quote French-style labour laws, because when they introduced the minimum services legislation, they always held up France as the example of where that works already. I wish they would make their minds up. The implication behind the question about trade union funding says rather more about their attitude to how legislation is made in this country than ours. We do things because we believe in them. If he looks carefully at what the OBR is saying, £1,400 into people’s pockets as a result of the national living wage increase is a fantastic achievement that we should all be proud of.
Tony Vaughan (Folkestone and Hythe) (Lab)
Anna Dixon (Shipley) (Lab)
The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)
Our plan for small businesses will help them to scale up and increase productivity and growth. We are doing that by creating opportunities for businesses to compete and access the finance they need to scale, export and break into new markets. Furthermore, at yesterday’s Budget, we announced a small business Command Paper next year, which will set out more detail on how we will support small businesses.
Tony Vaughan
I welcome the Minister’s answer. One way that we can support small businesses to scale up is through infrastructure investment, so that businesses can get their goods to market more quickly. Will the Department support my campaign to shift more freight from trucks to trains, starting with the channel tunnel in my constituency, where only 10% of its freight capacity is being used at present?
Gareth Thomas
Let me take the opportunity to congratulate my hon. Friend on his election to this House. I remember well, as I am sure he does, the problems that the people and businesses of Kent had to endure when the M20 became a lorry park, thanks to a combination of poor planning by the last Government and the poor-quality trade deal they negotiated with Brussels. We certainly support the expansion of rail freight, not least as it helps to build the resilience of supply chains. I would be happy to meet him or facilitate a meeting for him with Transport Ministers, to hear more about his campaign.
Anna Dixon
Small businesses such as the Greek Corner in Shipley have benefited from Bradford council’s business growth programme, funded by the towns fund, which provides capital assistance for businesses to create new jobs. The support measures announced yesterday in the Chancellor’s Budget for local authorities and small businesses will be vital to revitalising our high streets. Does the Minister agree that local authorities working with local communities are best placed to direct investment, to help SMEs grow?
Gareth Thomas
Let me take this opportunity to congratulate my hon. Friend on her election, too. I agree that local authorities working with local communities are fundamental to supporting SMEs in local economies. That is one reason why, as well as backing local authorities in yesterday’s Budget, we are backing Tracy Brabin, the excellent Mayor of West Yorkshire, with funding to support the priorities of local communities in constituencies such as that of my hon. Friend. It is also why we are introducing measures such as high street rental auctions and a powerful community right to buy, so that local communities can start the process of reviving their high streets.
Kit Malthouse (North West Hampshire) (Con)
I draw the attention of the House to my entry in the Register of Members’ Financial Interests. The Minister mentioned that access to finance is vital for small business, but I hope he knows that the past few days have seen chaos in the motor finance market, with a number of major lenders suspending lending entirely in response to a judgment in the appeal court. This has caused consternation across the entire business lending sector. Can the Minister reassure us that the Government are fully engaged with the industry and the Financial Conduct Authority in sorting out an issue that could have a very, very significant impact on the entire sector and its supply chain?
Gareth Thomas
We are certainly looking at the issues that have arisen for the industry from the judgment. More generally on access to finance, I am sure the right hon. Gentleman will welcome our launch, at the investment summit referenced by the Under-Secretary of State for Business and Trade, my hon. Friend the Member for Ellesmere Port and Bromborough (Justin Madders), of the British Growth Partnership, which is aimed at unlocking investment in businesses that want to scale up.
Richard Foord (Honiton and Sidmouth) (LD)
Economic growth happens when micro-sized businesses become small businesses. We learned yesterday that micro-businesses that employ up to four full-time workers on the national living wage will be exempt from employers’ national insurance. Yet small businesses that employ five workers or more will be subject to employers’ national insurance. How will that measure help small businesses in the south-west to scale up and bring economic growth to the region?
Gareth Thomas
I am glad that the hon. Gentleman welcomes, I think, the measures we took in the Budget to raise employment allowance to help the very smallest firms. The Federation of Small Businesses said yesterday that it will be a very big help for small firms. On his wider point about the Budget, I gently say to him, as I am sure he knows only too well, that the economic inheritance the Government face has led to our having to make some very tough decisions. If he does not support the measures we have set out in the Budget, he needs to say how he would finance the extra investment in the NHS and in industry that we have set out.
Clive Jones (Wokingham) (LD)
Wokingham has one of the highest rates of business survival when compared with the averages for the south-east and Berkshire, but yesterday’s announcement that the Government will raise employers’ national insurance throws that into doubt. The hike is, plain and simple, a tax on jobs that will deal a hammer blow to our small businesses. What will the Government do to mitigate the impact on small businesses in my constituency and across the country?
Gareth Thomas
I say very gently to the hon. Gentleman that if he and his party are determined to oppose the measures we took in the Budget, including on employers’ national insurance contributions, they need to set out how they would fund the extra investment in the NHS, the investment in the automotive and aerospace sectors, and the measures to protect and raise living standards.
Bill Esterson (Sefton Central) (Lab)
The Minister for Industry (Sarah Jones)
We held, as we have said, an international investment summit on 14 October, 100 days after we formed the new Government. We secured £63 billion of investment, which is twice the level of the previous Government’s investment summit. The investment will create high-quality, high-skilled, well-paid jobs across the country, and represents a huge vote of confidence in this new Government.
Bill Esterson
As my hon. Friend quite rightly said, the Labour party is now the party of business without any question. Does she agree that the measures committed to in yesterday’s Budget on clean energy, carbon capture and storage and hydrogen—which were backed up, by the way, with a commitment from a Canadian investor of another £1.8 billion in offshore wind—show how much this Government are in tune with the business community? We are attracting investment and building on the investment summit, and we will deliver jobs for our constituents and our communities up and down the country.
Sarah Jones
I agree wholeheartedly with my hon. Friend. I also agree with the former Chancellor, Kwasi Kwarteng, in his article yesterday. I quote:
“Conservatives, like myself, should be honest”
and
“Reeves is cleaning up our mess”.
Mr Paul Kohler (Wimbledon) (LD) [R]
The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)
We recognise the important role that night-time economy businesses play in supporting local economies and communities. Healthy night-time economy businesses not only support our creative industries, including musicians, DJs and performance artists, but bolster tourism and day-economy businesses. We are focused on our five-point plan to breathe life back into Britain’s high streets. That work will ensure that our high streets are great places for our businesses, supporting economic growth across the UK, including in the night-time economy.
Mr Kohler
I refer the House to my entry in the Register of Members’ Financial Interests. The hospitality industry is a crucial aspect of the night-time economy. It already faces an existential crisis, with post-Brexit labour shortages, covid debt and wage and commodity inflation. What advice would the Minister give to the hospitality industry and businesses that now face a hike in national insurance costs and, despite the headlines, a more than doubling in last year’s business rates?
Gareth Thomas
I would gently point businesses in the night-time economy to a series of measures that we took in yesterday’s Budget, including to reform business rates for the long term, from 2026-27. We listened to businesses, including those in the night-time economy, and did not abolish the business rates relief. Under the measures that we have taken, for example, the average pub with a rateable value of almost £17,000 will save over £3,300 next year.
Rachael Maskell (York Central) (Lab/Co-op)
Last Saturday night I had the opportunity to go out in York with the police. It was incredibly interesting and I am so grateful for the work that they do, and it gave me an opportunity to speak to employers. We know that, as employers, our traditional pubs are really struggling because the pubs code is not working properly. Will the Minister meet me and the Campaign for Pubs to discuss how we can improve things for those businesses?
Gareth Thomas
I will be very happy to meet my hon. Friend. I know from talking to pubs that they are also very worried about the rise in antisocial behaviour and crime in our high streets and town centres. She and the pubs and other members of the night-time economy that she works with will, I hope, be reassured by some of the measures that we have taken in the Budget to begin the process of cracking down on antisocial behaviour.
Sam Rushworth (Bishop Auckland) (Lab)
The Minister for Trade Policy and Economic Security (Mr Douglas Alexander)
I can assure my hon. Friend that the United Kingdom is committed to advancing both free and fair trade around the world that is inclusive, sustainable and seeks to reduce poverty. The UK’s aid-for-trade programmes, including the new Trade Centre of Expertise announced by the Prime Minister on 24 October, build the capacity of producers, businesses and Governments in developing countries to participate in, and prosper from, global trade. I can assure my hon. Friend that the UK is committed to making the world a safe and more prosperous place through strengthening our international development work, as set out in our recent manifesto.
Sam Rushworth
Children from Timothy Hackworth primary school in Shildon wrote to ask me to raise fair trade with the Minister as part of their fair trade week. They included Ashton, who reminded me of the privilege that we have to serve in this place. They would also like to know whether the Minister has met representatives of the Fair Trade Foundation since his appointment, and whether he considers that Britain’s leadership on fair trade policies can make a meaningful contribution to reducing poverty in sub-Saharan Africa.
Mr Alexander
First, let me commend my hon. Friend for his work with the local primary school. I know how assiduous he is in advancing the interests of his constituents. I can assure him that we fully understand the importance of fair trade. I have met a representative of the Fair Trade Foundation in recent weeks, and I pay particular tribute to the work that Fairtrade is doing with the Co-op. Thousands of farmers producing goods such as tea, coffee, sugar and flowers are helped by Co-ops in our high streets across the country. It is now the UK’s largest seller of fair trade products, and it deserves our commendation too.
John Grady (Glasgow East) (Lab)
The Minister for Trade Policy and Economic Security (Mr Douglas Alexander)
The international investment summit, about which we just heard, secured more than £63 billion, including for two significant projects in Scotland. Scottish Power, owned by Iberdrola, committed £24 billion to upgrade the UK’s energy infrastructure over the next five years. Floating offshore wind developer Green Volt has selected Aberdeen for its headquarters and plans to invest £2.5 billion. That, of course, comes on top of this Government’s establishment of GB Energy.
John Grady
I thank my right hon. Friend for his answer. Yesterday saw the largest Budget settlement for the Scottish Government in devolution’s history. The Labour party’s commitment to Scotland runs through this Government. Last week, the highly respected Strathclyde University’s Fraser of Allander institute reported that only 9% of Scottish businesses agree that the Scottish Government understand the business environment in Scotland. Does my right hon. Friend agree that Government understanding of business is crucial in driving investment and growth in Scotland, and that it is critical that the Scottish Government improve their understanding of the business environment?
Mr Alexander
Frankly, businesses in Scotland have been let down by two failed Governments. We have had a decade of division and decay in Scotland, and I am glad to see that we now have political stability, with Labour having a majority in Scotland, Wales and England. At the same time, we are committed to genuine partnership and working with the Scottish Government. I know that my hon. Friend has particular expertise in energy policy, given his past professional work. Tomorrow I will be in Torness, in my constituency, to meet EDF Energy—just one example of a business that, frankly, is being held back by the policy and approach of the present Scottish Government.
Chris Law (Dundee Central) (SNP)
I am not surprised in the slightest to hear the disparaging comments from those on the Government Benches about business in Scotland, so I will bring the House up to speed. For the ninth consecutive year, Scotland, under the SNP Scottish Government, is the UK’s top-performing area outside London for foreign direct investment, yet Brexit has reduced the attractiveness of the UK as a base for exporting to EU markets, resulting in its being overtaken by France as the leading destination for foreign direct investment in Europe. Does the Minister recognise that reversing what he seems to be married to at the moment—the Tories’ hard Brexit—is the most significant step that this Government could take to increase inward investment and boost growth in Scotland?
Mr Alexander
As I was saying, let me deal with both the failed Governments who have been letting Scotland down in the last decade. Frankly, if the hon. Gentleman wants to advance the case that there has been a decade of prosperity in Scotland, good luck to him. The reality is that it is very hard to think of a single aspect of Scottish public life that has improved over the last 10 years. Take the case of ferries. Take the case of hospitals. Take the case of our schools or, indeed, the broader business environment.
On Brexit, I recognise that there is a need for a fundamental reset with the European Union, and in recent days I have been taking forward that work. I welcome the work that the Prime Minister has been undertaking, but that is the task of a Labour Government. As so often on so many issues, the SNP talks and Labour delivers.
Bell Ribeiro-Addy (Clapham and Brixton Hill) (Lab)
The Minister for Industry (Sarah Jones)
In little more than 100 days in government, this Department and its Secretary of State, who is flying to Doha today, have set about delivering on the promises made in our manifesto. We have turned up the dial on growth and published our Green Paper on the modern industrial strategy, which will channel support to key sectors, work across our nations and regions with the private sector, and deliver the conditions for investment and good jobs. We have delivered a huge vote of confidence in the UK by securing £63 billion of investment at our international investment summit, boosted by investment ploughing into our aerospace, automotive and life sciences sectors, as announced in yesterday’s Budget. We have also kept our promises by publishing the Employment Rights Bill, which represents the biggest upgrade in workers’ rights in a generation. We are a pro-innovation, pro-worker and pro-wealth creation Government, and are investing all our time in growing the economy for the long term and turning round 14 years of failure.
Bell Ribeiro-Addy
A four-day week with no loss of pay has proven to have benefits for employers and employees alike, and a recent report by the Autonomy Institute and Alda suggests that it can have a hugely positive impact on the economy. The report concludes that Iceland’s economy has outperformed most of Europe since adopting a shorter working week, and now has one of the lowest unemployment rates. With even more UK businesses beginning a four-day week trial on Monday as part of the 4 Day Week Campaign’s autumn pilot, what assessment has the Department made of the Icelandic report and of the potential impact that a four-day week could have on UK businesses and our economy?
Sarah Jones
The Government have no plans to undertake any trials on a four-day week for five days of pay. It is for employers and employees to reach agreements that fit their specific circumstances, but we want to get the balance right and make sure that we work with employers and employees. That is why the Employment Rights Bill will support both parties to reach agreements, where they are feasible.
Kevin Hollinrake (Thirsk and Malton) (Con)
If Labour Members going back to their seat this weekend were thinking of going to a local pub for a pint and a chat with local farmers, I would think again. A publican with a mid-sized pub contacted me last night to say that because of yesterday’s changes, he would be £120,000 a year worse off, moving him from profit to loss. Labour said that its plans were fully costed and fully funded. Yesterday was a massive broken promise, was it not?
Sarah Jones
The hon. Gentleman oversaw the worst Parliament for living standards in modern history. We did not choose that inheritance, and we have made choices. Would he rather we did not compensate for the infected blood scandal? Would he rather we did not compensate the Horizon victims, for whom there was no money in the Budget, on his watch? Would he rather we did not invest in the health service? Would he rather we did not increase the minimum wage? Would he rather we did not support carers? Would he rather we made the choices that he made, such as cutting national insurance for workers when there was no budget for that? This Government are fixing the foundations, so that we can have a bright future for all our country.
Kevin Hollinrake
The Government’s choice was to hit businesses, and that is because there is not an ounce of business experience among them. Labour’s death taxes will hit farms and businesses. Families with a typical farm will have to find hundreds of thousands of pounds or see their farms broken up and sold. The Environment Secretary said 10 months ago that he had no intentions of putting death taxes on businesses. That was a broken promise, was it not?
Sarah Jones
I will not take any lectures from the Opposition, who said “eff business”. Conservative Members have some cheek to come at us when we are clearing up the £22 billion black hole that we inherited, and setting in train stability. I spent quite a lot of yesterday, as the hon. Gentleman would expect, talking to and having meetings with businesses about the Budget and its implications. We talked about the potential for growth, long-term stability, and changes that this Labour Government are making.
Steve Witherden (Montgomeryshire and Glyndŵr) (Lab)
The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)
My hon. Friend is absolutely right that we need to get more people back into work, and need to support them to return. In the Employment Rights Bill, we are looking to increase the scope of sick pay to include people below the lower earnings limit, and to introduce payments from day one. We have no plans to increase the rate of statutory sick pay, but when we get the reforms through, we will no doubt look at how we can reform it for the better. My Department for Work and Pensions colleagues will consider that in due course.
Dr Luke Evans (Hinckley and Bosworth) (Con)
The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)
No. I gently point out to the hon. Gentleman the difficult economic inheritance that his party left this Government to sort out. We are determined to walk towards all the tough decisions his party refused to face up to in government. If he is against the increase in employers’ national insurance contributions, he needs to say how he will fund the investment we announced yesterday in the aerospace and automotive sectors, and how he would fund the extra investment that we will make in the NHS and other public services.
John Slinger (Rugby) (Lab)
Mr Speaker
Order. These are topical questions, and they are meant to be short and punchy, not speeches. I am sure we can find time for an Adjournment debate for the hon. Gentleman.
Gareth Thomas
Given that almost 9,500 bank branches closed over the past 14 years, on the Conservative party’s watch, it has increasingly been left to the Post Office to provide vital banking services on the high street. I am sure the banking industry recognises its responsibility to work with us to ensure that sub-postmasters, whose pay has not increased for a decade, and the Post Office have what they need to help meet the critical cash and banking needs of all our constituents.
Martin Vickers (Brigg and Immingham) (Con)
Although yesterday’s announcements may dampen businesses’ expansion plans, many businesses in my constituency and elsewhere find it difficult to expand because of national grid connections. What are Ministers doing to engage with the Department for Energy Security and Net Zero and National Grid to ensure that connections are available?
Sarah Jones
I am glad that the hon. Gentleman asks what we are doing to engage with the Department for Energy Security and Net Zero, because I sit across that Department and the Department for Business and Trade. The entire point of my role is to make sure that we join up the two Departments, so that we can crack some of these problems. The grid is No. 1 on our list.
Ian Lavery (Blyth and Ashington) (Lab)
Sarah Jones
I agree with my hon. Friend. It is essential that local communities see the benefits of landmark investments. I am pleased that Blackstone is investing £110 million in a fund to support local skills training and transport infrastructure. I am happy to have a conversation with my hon. Friend about what more can be done.
David Mundell (Dumfriesshire, Clydesdale and Tweeddale) (Con)
Farming and agricultural businesses employ thousands of people in my constituency, and they make a huge contribution to the local economy. Can the Minister set out exactly how yesterday’s Budget will help them to develop and grow?
The Minister for Trade Policy and Economic Security (Mr Douglas Alexander)
Farmers, like any other business people, need the stability that will be delivered as a consequence of our fixing the foundations, as we set out yesterday. I too represent a constituency with a number of farmers, and I am aware of the concerns that have been raised about inheritance tax, but, frankly, difficult choices had to be made yesterday because of choices that were not made by the Government in which the right hon. Gentleman served.
Becky Gittins (Clwyd East) (Lab)
Sarah Jones
Yes, I will work with my hon. Friend. We are delighted with the £1 billion investment secured to transform the Shotton mill site. I think that a Labour Government in Westminster and a Labour Government in Wales can work together to deliver great things.
Josh Babarinde (Eastbourne) (LD)
Some 29% of jobs in Eastbourne, the sunniest town in the UK, are connected to the hospitality sector, but many businesses in that sector have expressed concerns about yesterday’s Budget, which UK Hospitality has described as the “latest blow for hospitality”. Will the Minister meet me and local hospitality businesses to discuss those concerns? I declare an interest as the patron of the Eastbourne Hospitality Association.
Gareth Thomas
I would be very happy to meet the hon. Gentleman and the Eastbourne Hospitality Association to discuss the concerns that he has articulated. I gently say to him, as other Ministers have pointed out, that we faced a tough economic inheritance, and had to make very difficult decisions in the Budget yesterday.
Mr Tanmanjeet Singh Dhesi (Slough) (Lab)
Gareth Thomas
When we were in opposition, we set out a five-point plan to help with the revival of high streets. We are working to bring forward that plan. My hon. Friend will see more detail in the small business strategy Command Paper that we are committed to publishing next year.
Lincoln Jopp (Spelthorne) (Con)
We have an anomalous situation in Spelthorne whereby people can use an oyster card to pay for six different red buses, but not the train. That is crippling small businesses and people going into London. Will Ministers in the Department use their combined might to lobby on my behalf and get me a meeting with the Minister for Rail, so that we can get Spelthorne into the correct zone?
Sarah Jones
I admire the hon. Gentleman’s ability to shoehorn in a question on a subject that is not in the Department for Business and Trade’s remit, but we are of course happy to help with his endeavours to talk to Ministers in the Department for Transport.
Marsha De Cordova (Battersea) (Lab)
Justin Madders
I would be delighted to meet my hon. Friend. Under the “Get Britain Working” plan, more disabled people and people with health conditions will be supported to enter and stay in work, and I am happy to discuss with her how we can achieve that aim.
Alison Griffiths (Bognor Regis and Littlehampton) (Con)
The Government’s own impact assessment suggests that measures in the Employment Rights Bill could cost businesses up to £4.5 billion annually and increase the number of strikes by 54%. Does the Minister expect that legislation to enhance or undermine investor confidence?
Justin Madders
I gently point out to the hon. Lady that that represents a 0.4% increase on businesses’ total costs—a small price to pay for what the impact assessment says
“will strengthen working conditions for the lowest-paid and most vulnerable in the labour market, increasing fairness and equality across Britain. It will have significant positive impacts on workers who are trapped in insecure work, face discrimination, or suffer from unscrupulous employer behaviour like ‘fire and refire’ practices”.
If the hon. Lady does not support that, I am sure that she can talk to her constituents about why.
Liam Byrne (Birmingham Hodge Hill and Solihull North) (Lab)
On Tuesday, we will hear from Sir Alan Bates and other victims of the Horizon scandal, which continues to deepen. In September, we learned that there will be 100 more convictions quashed than we originally thought, and yesterday the bill for redress went up by half a billion pounds. Have all the victims now come forward, and are there any gaps left in the schemes for redress?
Gareth Thomas
I welcome the decision by my right hon. Friend’s Select Committee to take a further look at the issue. It is a priority for the Department to speed up the compensation process. Victims are still coming forward, and we are actively looking at whether all those who come forward are covered by the compensation schemes. We have asked the Post Office to write to all those sub-postmasters who have not yet come forward to see if they are eligible for compensation.
Kit Malthouse (North West Hampshire) (Con)
We should all welcome the work of both Governments that resulted in the announcement of £63 billion of inward investment into the UK. However, since then, as a number of Members have pointed out, we have had significant new regulation in the labour market and massive new taxes on businesses. If any of those investors now change their minds, will the Secretary of State come to the House and inform us, please?
Sarah Jones
We will of course keep the House updated on the results of the investment summit, but the £63 billion, as I said earlier, was a massive show of confidence in this new Government.
Torcuil Crichton (Na h-Eileanan an Iar) (Lab)
I am grateful to the Minister and the Secretary of State for the work that they have put in to secure a future for the Harland & Wolff yard at Arnish in my constituency, and indeed at Methil, Appledore and Belfast. I understand that talks are commercially sensitive, but, as workers are anxious about their future, can the Minister update us on how the talks are going?
Sarah Jones
I thank my hon. Friend for his question and for the work that he is doing to represent his community. We are working extensively with all parties to find an outcome for Harland & Wolff that delivers shipbuilding and manufacturing in Belfast, Scotland and Appledore in Devon. I cannot comment further, as he says, due to commercial sensitivities, but we are working extensively with everyone to get the right deal.
Chris Law (Dundee Central) (SNP)
The International Court of Justice judgment from 19 July this year ruled that it is the duty of third-party states not to aid or assist Israel’s “unlawful occupation” of Palestinian territory. In the light of this, will the Minister tell us whether the Department for Business and Trade has obtained legal advice, or whether it is in the process of doing so, on the legality of the UK’s existing trade relations with Israel, and if it has, will he share it with the House, please?
Mr Douglas Alexander
I can assure the hon. Gentleman that we work closely with our colleagues in the Foreign, Commonwealth and Development Office who are responsible for the international humanitarian law assessment. My good and right hon. Friend the Foreign Secretary has updated the House on the changed advice received by the Government, and I think that I should leave it there.
Melanie Onn (Great Grimsby and Cleethorpes) (Lab)
Will the Minister meet me to discuss how the Government could further develop an industrial strategy to bring up to 10,000 jobs in the offshore wind supply chain over the next 10 years?
Sarah Jones
I would be delighted to meet my hon. Friend often and regularly, as we do, to talk about these matters. Of course, the offshore wind supply chain is incredibly important. We have two big announcements to that end, which she mentioned, in relation to Orsted and Greenvolt, and there is much more that we can do through the industrial strategy to keep that area growing.
Jim Shannon (Strangford) (DUP)
What discussions have there been with Invest NI in relation to supporting small Northern Ireland businesses in the digital evolution, to help them adapt and make improvements with digital technology to ensure the smooth running of their businesses?
Gareth Thomas
We have held discussions with a range of organisations on exactly that issue. I promised the hon. Gentleman earlier that I would meet him. If he wants to add that to the list of subjects that we talk about, I am happy for him to do so.
Sally Jameson (Doncaster Central) (Lab/Co-op)
In Doncaster, we have an innovative chamber of commerce and a fantastic set of local businesses. As well as the much-needed upgrade to workers’ rights, can the Minister update the House on what we are doing to kickstart a skills revolution for businesses in Doncaster and across the country? Can he also update the House on what he is doing to work across Departments to ensure that happens?
Gareth Thomas
As others across Whitehall have already set out, we have established Skills England and begun the process of reforming the apprenticeship levy to help businesses get better access to the skills they need.
Perran Moon (Camborne and Redruth) (Lab)
I have more than 30 years of business experience, so the Conservative party’s claims that there is no business experience on the Government Benches carries about as much weight as their industrial strategy. Can the Minister confirm that prior to the election there were extensive consultations with business experts, which I bet the Conservative party wished they had done over the past 14 years.
Sarah Jones
Yes, indeed. I can reassure my hon. Friend that, on this Front Bench, there are Members, including me, who do have private sector experience, and who have run businesses. Of course we have had very strong relationships with businesses, both in the run-up to the election and now, and we will continue to build on those strong relationships for the benefit of all the people across our country.