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Dr Marie Tidball (Penistone and Stocksbridge) (Lab)
The Minister for Industry (Sarah Jones)
The steel industry has been in decline, and we intend to turn this around. That is why we are developing a steel strategy, investing up to £2.5 billion and working at pace. The steel sector in South Yorkshire and across the UK has been neglected for too long, and we intend to change that.
Dr Tidball
Stocksbridge Speciality Steels in my constituency is a world-leading plant, with specialist capability to produce cleaner and stronger high-grade steel for our aerospace industry. The plant supports hundreds of jobs and has an exceptional on-site skills training centre, with links to local universities. Will the Secretary of State meet me to discuss the future strategic significance of Stocksbridge Speciality Steels and its fundamental importance to our national steel industry?
Sarah Jones
I thank my hon. Friend for her question, and for championing her constituency and its industries. She makes a very good point, and I recently met her to talk about this. This week, I met Community trade union representatives from the steel sector in her area as well. I am always happy to meet again to see what we can do.
Martin Vickers (Brigg and Immingham) (Con)
As the Minister knows, it is not just South Yorkshire that is facing difficult decisions about the steel industry. I thank her for our recent meeting about the future of Scunthorpe. Is she able to add anything on when we might expect an announcement? As she will appreciate, particularly at this time of year, there is growing anxiety among the workforce.
Sarah Jones
I thank the hon. Gentleman for his question, and for his interest in his constituents and their jobs in the steel industry. As he says, we have met to talk about this, and I have nothing new to add today, other than that we continue with our conversations with British Steel. We are working as fast as we can. Obviously, it is ultimately up to British Steel to decide what it wants to do and take forward, but we stand ready to support and work with it.
Alex Baker (Aldershot) (Lab)
The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)
We recently launched Unlock Europe, a new export programme designed to help UK businesses build stronger relationships with European customers. Last month, in Manchester, my right hon. Friend the Secretary of State launched a new pilot scheme, alongside the mayor and his team, that offers businesses in the north-west more support in selling their products and services overseas. We are determined to do more, and will bring forward further plans in due course.
Alex Baker
Exports from our aerospace, defence, security and space sectors contribute around £40 billion to our economy, but without additional support, many of the small businesses I speak to in Aldershot and Farnborough are limited in their ability to export. What can Ministers do to help them, and will the Government consider reinstating the trade show access programme, closed down by the Conservatives, to help more small and medium-sized enterprises trade around the world?
Gareth Thomas
My hon. Friend is absolutely right that we have to do more to help small businesses in particular, and businesses in general, to export more overseas. That is one of the key, but often understated, ways in which we can deliver growth for this country. As part of our work on a new trade strategy and a small business strategy, we are looking at further proposals to help our businesses export more.
Richard Foord (Honiton and Sidmouth) (LD)
The Italian press has been reporting that the global combat air programme consortium, involving the UK, Italy and Japan, might be extended to include Saudi Arabia. Can the Minister confirm this press report? How would that affect any future decision to suspend licences to export arms to Saudi Arabia, as the Government decided to in 2019?
Gareth Thomas
We are looking at working with other GCAP partners. I was in Italy last month to discuss the further potential of GCAP, and other work that we can do with the Italians in this space, but that will not affect the issue about which the hon. Gentleman is specifically concerned.
Dr Neil Shastri-Hurst (Solihull West and Shirley) (Con)
The Secretary of State for Business and Trade (Jonathan Reynolds)
The Government were forced to make difficult choices in the Budget, but the fundamentals of doing business in the UK remain strong. The Government’s agenda of creating an industrial strategy, getting people back to work, reforming our planning system, rebuilding our relationship with the EU, pensions reform and more, is entirely focused on improving the long-term business environment across the UK.
Dr Shastri-Hurst
In the aftermath of the Budget, I spoke with many business leaders in my constituency of Solihull West and Shirley. Invariably, they told me that they are pausing recruitment and freezing their growth plans as a direct consequence of the decisions made around taxation and the Employment Rights Bill. What does the Secretary of State say to those businesses in my constituency that no longer have confidence in the Government and feel abandoned by their policies?
Jonathan Reynolds
I say that the Budget was seven weeks ago, so if the Conservative party, which did not tell us how it would pay for the promises it made when it was in government, now has a plan to pay for those promises, I would welcome receiving it in writing, or hearing it here at oral questions or in a statement. The raw reality is that the Conservative party made promises that it had no intention of keeping. We are not going to do that; we will fix the foundations and do what we say. The reason this Government will succeed on growth and business investment in a way that the previous Government did not has to do with the fundamentals: the return to political stability in the UK; an openness to the rest of the world, including the EU—a difficult subject for Conservative Members, I know—which is still our major trading partner; and the willingness of this Government to use their mandate to improve the business and investor environment. Those fundamentals mean that the future of the UK is very promising.
Sarah Coombes (West Bromwich) (Lab)
Steel manufacturing is a vital west midlands industry, but business confidence is being dented by retrospective charging of steel safeguarding duties by His Majesty’s Revenue and Customs. Companies that are affected in my constituency and elsewhere feel that such duties were unfairly and wrongly imposed on them during the chaotic Brexit transition period. They tried to work with the last Government, but got nowhere. Given the importance of the steel sector to British industry, will the Minister work with the Treasury to resolve the issue, and ensure that these vital businesses are protected from hefty bills that they should never have been sent in the first place?
Jonathan Reynolds
I thank my hon. Friend for raising that important matter. Given the sums of money involved, I can understand why that is a substantial issue for businesses in her constituency. It relates to the duties that were charged at a time of significant political uncertainty. This is a Treasury issue relating to taxation, but I promise we will get her the meeting she needs, and work with her to ensure that she gets the answers she requests for her constituents.
Greg Smith (Mid Buckinghamshire) (Con)
There is no clearer pointer on business confidence than the Bank of England’s recent survey on employers’ responses to the Budget. Some 59% expect lower profit margins; 54% expect to raise prices; 54% expect lower employment; and 38% expect to pay lower wages than they otherwise would have. Now City AM reports that Labour has carelessly lost all its business backers. Will the Secretary of State show any contrition, admit that business confidence is through the floor, and start standing up for business, rather than the Treasury?
Jonathan Reynolds
Well, what can I say? Was it the Conservative party that increased corporation tax from 19% to 25% in one Budget, and that crashed business investment and confidence because of the way it mishandled Brexit, failing to prepare for either outcome of a yes/no referendum? And which Opposition Front Benchers played a role in the mini-Budget? Frankly, it was all of them. With respect to the hon. Gentleman, I will not take advice from him. Since the Budget, I have heard repeatedly from Conservative colleagues that they want to lower taxes and increase spending, even though they cannot account for the promises that they made when in government. That is not credible unless they engage with reality, as this Government are doing. Whether it is the response to the Chancellor’s speech at Mansion House or finally sorting out Marks & Spencer this week, this Government are getting on with the job and looking to the future.
Greg Smith
Sorry seems to be the hardest word. [Interruption.] I am talking about the Government’s Budget. Further proof of how low business confidence is getting under this Government was given in evidence to the Employment Rights Bill Committee. Jane Gratton of the British Chamber of Commerce predicted
“a reduced hiring appetite were this legislation to come in, and that”
their members
“would be less likely to recruit new employees due to the risk and difficulty, particularly under the day one rights”.––[Official Report, Employment Rights Public Bill Committee, 26 November 2024; c. 8, Q2.]
If business confidence is low, employment goes down. We already know that every Labour Government leave unemployment higher than when they took office, but is it not a bit extreme for this Labour Government to legislate for that outcome?
Jonathan Reynolds
If the hon. Gentleman googles that statistic, he will find that it is not actually true, but I appreciate that it is demanding being in opposition, and that there may not always be the capacity and resources required. As we heard on the excellent Second Reading of that legislation, the vast majority of employers in the UK already operate to a higher standard than the level to which the floor is being raised in the Employment Rights Bill. I do not in any way pull back from saying that some of the most vulnerable, insecure and low paid members of our society will benefit from the Bill; that is exactly what it is about. Those people may have given up on politics or think that the mainstream political system will not deliver for them. I reject the claim that certain industries require a supply of labour from jobs that do not give people the security and dignity that they need. This is a set of proportionate, reasonable reforms that will make a difference—
Munira Wilson (Twickenham) (LD)
The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)
We recognise the vital role that kinship carers play in caring for vulnerable children, and the challenges that many face in balancing that care with employment. We recently announced the largest ever investment in support for kinship carers: £40 million to trial a kinship allowance in up to 10 local authorities. We will also review the parental leave system to ensure that it best supports all working families, and work is already under way to plan for that delivery.
Munira Wilson
I am sure the Minister will agree that kinship carers are unsung heroes, who often step up at a moment’s notice to look after a child whose parents cannot, but four in 10 are forced to give up work to do so, which means they often struggle to pay the bills or put food on the table. Will the Minister look to right that wrong through the Employment Rights Bill, and introduce a right to paid employment leave for kinship carers, given the savings to the public purse and the better outcomes for children that arise from kinship care?
Justin Madders
I met a kinship carer in my constituency recently who told me about the challenges the hon. Lady has articulated. The carer said that the most important thing to her was getting respite care—a point that we can all recognise. We are looking at how the trial pans out. I have spoken in detail to my hon. Friend the Member for Great Grimsby and Cleethorpes (Melanie Onn) about the proposals coming forward, but we think it is best to see how the trial works, and to look at the wider review of the parental leave system.
Rebecca Paul (Reigate) (Con)
Sir John Whittingdale (Maldon) (Con)
The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)
Hospitality businesses are at the heart of our communities and are vital for economic growth. The Government are creating a fairer business rates system, reducing alcohol duty on qualifying draught products and reforming the apprenticeship levy to support businesses and boost opportunities. We are addressing strategic issues for the hospitality sector relating to high-street regeneration, skills, sustainability and productivity, and that work will be supported by the publication of the small business strategy Command Paper next year.
Rebecca Paul
In Reigate, Redhill, Banstead and our villages, we have many amazing pubs that contribute hugely to the economy, such as the Garibaldi community pub in Redhill. For those businesses to thrive, reform of the unfair business rates system by 2026 is critical. Will the Minister commit to the proposed 20p reduction to the small business rate multiplier, which is the absolute minimum reduction needed for the long-term sustainability of the pub sector?
Gareth Thomas
The hon. Lady will know that the Chancellor of the Exchequer committed in the recent Budget to a series of reforms to business rates, including permanently lower business rates for hospitality businesses from 2026-27. I welcome the hon. Lady’s support for that measure.
Sir John Whittingdale
UKHospitality has estimated that the Budget measures will increase the cost of employing one employee by £2,500. Shops, pubs and restaurants across my constituency have said that that will lead to higher prices or fewer jobs. Will the Minister at least consider delaying the implementation of the national insurance contribution increase to 2026-27, when the planned realignment of business rates is due to come in?
Gareth Thomas
I am sure that the right hon. Gentleman will have noticed that in the Budget, the Chancellor more than doubled the employment allowance to £10,500. That will mean that more than a million small businesses, many of them hospitality businesses, will see no increase in their national insurance liabilities next year.
Dr Danny Chambers (Winchester) (LD)
The Minister for Trade Policy and Economic Security (Mr Douglas Alexander)
Our approach to trade deals considers the impact on and opportunities for the agricultural sector, along with other sectors of the economy, and, of course, our growth mission. The Government will publish impact assessments to aid the ratification process for new free trade agreements.
Dr Chambers
I worked with farmers for many years as a veterinary surgeon, and now I meet them regularly as an MP, so I am aware that farmers in Hampshire and the rest of the country were hugely disappointed when the previous Conservative Government signed trade deals that undermined our high animal welfare standards. What steps is the Minister taking to ensure that after future trade deals, British farmers will not have to compete with products produced to lower animal welfare standards—for example, battery hens, or products that involve the indiscriminate use of antibiotics, which is also a public health issue? It is not only vets and farmers who are proud of our high animal welfare standards, but the British public, so will the Minister confirm that he does not want to compromise on those standards?
Mr Alexander
I am grateful to the hon. Gentleman for bringing his considerable expertise in veterinary science to the Chamber today. We will not compromise on animal welfare standards as we take forward our programme of free trade agreements. Although we might well have approached the negotiations that the previous Government undertook in a different manner, reopening them would certainly create uncertainty, which we genuinely believe would hurt UK business. We are not seeing Australian or New Zealand beef and lamb flood the UK market, and we will continue to monitor trade flows under both those free trade agreements. He makes a very fair and important point about the need to maintain welfare standards.
Alice Macdonald (Norwich North) (Lab/Co-op)
Darren Paffey (Southampton Itchen) (Lab)
The Secretary of State for Business and Trade (Jonathan Reynolds)
Small businesses are the beating heart of our high streets and communities, and are essential to our economic success. That is why, on Small Business Saturday, I announced the business growth service, which will ensure that businesses across the UK get quicker and easier support and advice from Government. Further announcements include the disability finance code for entrepreneurship to improve access to capital and tackle inequality for disabled entrepreneurs. A new fair payment code was launched by the Office of the Small Business Commissioner to help address late payments. Next year, as my hon. Friend has said, the small business strategy will be published to create thriving high streets, easier access to finance, open overseas and domestic markets and enhanced business capability.
Alice Macdonald
Small and medium-sized businesses come in many forms, from microbusinesses to community interest companies and co-operatives. Often, co-operative and mutual business models are overlooked. Norwich has a proud history of co-operatives. Will the Secretary of State reassure me that co-operative and mutual business models will be properly included in this Government’s much-needed push to support small and medium-sized businesses?
Jonathan Reynolds
I very much welcome my hon. Friend’s question. My area on the eastern side of Greater Manchester has, like hers, a huge history of co-operatives and mutuals. The diversity in business models that they bring is a huge strength; they bring different things to the market and different ways of doing business. The resilience in co-operative models is particularly attractive. I can assure her that they form part of the Government’s wider strategy. Our ambition is to double mutuals’ size in the economy. The Under-Secretary of State for Business and Trade, my hon. Friend the Member for Harrow West (Gareth Thomas), the small business Minister, is leading on that work, and I would love my hon. Friend and businesses from her area to be involved in it.
Darren Paffey
Last week, I had the pleasure of visiting the winners of my first Small Business Saturday awards in Southampton Itchen. They were Riann Care, The Bunker, Miss Ellie’s Café and Julie’s Dance Studio. Will the Secretary of State join me in congratulating them on their role in ensuring a thriving local economy? What assurances he can offer them that this Government have the back of small businesses?
Jonathan Reynolds
I am extremely grateful to my hon. Friend for his question. I certainly join him in congratulating those local businesses on their work and, indeed, all Members of Parliament on the work that they do on their constituency days to champion and support local businesses. The Government’s agenda includes long-term reform of business rates to create permanently low business rates for retail, hospitality and leisure. The launch of high-street rental auctions, getting rid of derelict property in town centres, is also hugely exciting. The business growth service is predominantly about recognising that although the Government do a lot, businesses can often find it hard to access exactly what they need. I have looked around the world—to the US and its Small Business Administration, and to Singapore and its Enterprise Singapore, for example—to discover the best models. That is what we will take forward in 2025, and I find it a hugely exciting agenda.
Wendy Morton (Aldridge-Brownhills) (Con)
Last Saturday was indeed Small Business Saturday. It was an opportunity for us to celebrate and support the many small businesses in our constituencies. However, too many of them are really worried about the increase in national insurance contributions—the £25 billion jobs tax—and there is simply no easy answer for them. They cannot just put up their prices, so they are looking at staffing levels. Why are the Government so against aspiration, and how do they think they will improve productivity and deliver growth in the economy?
Jonathan Reynolds
Conservative Members know what they left behind, and I have not heard any of them offer an alternative. The specific answer to the right hon. Member’s question is that employment allowance was doubled in the Budget and the threshold was taken off. That is why 1 million, mainly smaller, businesses are paying less or the same in national insurance contributions as they were before the Budget. She should tell the House how the Conservative party would pay for the infected blood scandal—the victims of which we are all committed to compensating—Post Office compensation, support for the steel industry, and the advanced manufacturing plan that we inherited, because none of that was in our departmental budget. We are fixing the foundations with long-term public investment and an agenda based on higher business investment and better, stronger economic growth in every part of the UK.
Sir Ashley Fox (Bridgwater) (Con)
The Government have raised national insurance charges on employers and introduced a family farm and a family business tax. The Employment Rights Bill will raise business costs by £5 billion, predominantly for small businesses. As a result of those changes, does the Secretary of State believe that SMEs will employer more or fewer people?
Jonathan Reynolds
I have absolutely no doubt that the Government’s agenda is one for employment, business investment and growth. Some of the things that this country needs the most could only have been delivered by a change of Government. I simply do not believe that the Conservative party is capable of reforming the planning system or having a long-term industrial strategy, fixing our relationship with the European Union, and all the rest of it. Yes, there have been challenges, but the Conservatives know what they left behind. They knew what they were doing. There is a reason the Conservative party had no spending plans for the next financial year. We have had to confront that reality, but we cannot have the kind of success that this country needs unless we are willing to fix the foundations and focus on the long term. The Chancellor did that in the Budget, and the agenda of the Department for Business and Trade is extremely attractive for the future.
Dame Harriett Baldwin (West Worcestershire) (Con)
Some of the most successful small and medium-sized businesses, which truly think long term, are owned by families, so why does the Secretary of State think that it will help his long-term growth mission for the Government to start taxing those businesses when they get passed on to the next generation?
Jonathan Reynolds
With respect, I hear a lot of calls from the Conservatives to cut taxes and increase spending, but still no account of how they would do that. I appreciate that sometimes the initial transfer into opposition can feel exhilarating, but there is a responsibility that comes with it. I would like to see an account from the Conservatives of how they would pay for it.
For all tax changes across the board, we can still say with real confidence that the UK has a competitive tax system—benchmark our corporation tax, and the allowances on it, our capital gains taxes and, in this case, our inheritance taxes. The mistake that the Conservatives make is that they forget that the adjustments to specific reliefs for businesses and agricultural property are on top of the existing inheritance tax thresholds. Frankly, a little less scaremongering from the Opposition and a bit of focus on what is really at stake would be welcome.
Sarah Gibson (Chippenham) (LD)
Small businesses are at the heart of our local communities. Firms such as Carbon ThreeSixty in my constituency are cutting-edge manufacturers of carbon fibre products. However, its growth as a small business is seriously affected by its ability to attract and retain quality staff, predominantly because of the poor public transport and completely non-existent cycle routes. These issues cut right across Departments. I would therefore be grateful if the Secretary of State could confirm what discussions he has had with ministerial colleagues in other Departments about how rural transport infrastructure would greatly support small and medium-sized businesses.
Jonathan Reynolds
I welcome the hon. Member’s question. She is right that some of the issues that most affect businesses in our constituencies often sit in other Departments. The role of my Department is to focus on and champion those issues across all of Government, whether they sit neatly in the Department or not. She correctly highlights the incredible and important role that rural businesses play, and their social as well as economic benefits. Her points about transport were well made. One of the big changes in the Budget was the ability to focus on long-term investments, which was recognised by the Office for Budget Responsibility in its assessment that the productive potential of the UK will grow significantly over the next decade because of that increased focus—investment, investment, investment. Transport is a great element of that, whether in my constituency or in hers. I assure her that the needs that she articulates are considered at the highest levels of Government.
Callum Anderson (Buckingham and Bletchley) (Lab)
Mr Luke Charters (York Outer) (Lab)
The Minister for Industry (Sarah Jones)
Growth is the Government’s No. 1 mission and, in her Mansion House speech, the Chancellor announced a package of reforms to drive growth and investment across the UK. I have lost count of the number of times I have had conversations with businesses where they talked about how our appetite for risk is not in the right place, and we are looking to reform that. Here in DBT, we are driving change through our new industrial strategy working across Departments, which we will publish in the spring.
Callum Anderson
High-growth companies across Buckingham and Bletchley rely on foreign direct investment for their growth and innovation. Will the Minister set out the steps her Department and the Minister for Investment are taking to ensure that the Office for Investment can attract more foreign private investment to help the high- potential industries in which Britain excels?
Sarah Jones
We have an expanded Office for Investment, which brings together the Department for Business and Trade, No. 10 and the Treasury. Our Investment Minister is working at pace travelling around the world to bring in investment. I met her and the Office for Investment this week, and we are in constant dialogue about how we can bring more foreign direct investment into the country, building on the £63 billion announced at the investment summit, and how we can kick-start the economy after 14 years of failure.
Mr Charters
The Chancellor of the Exchequer mentioned growth over 40 times in her superb Mansion House speech. York, Leeds and beyond will benefit from that. How will my hon. Friend ensure that the industrial strategy delivers for financial services so that we can achieve the growth this country desperately needs?
Sarah Jones
My hon. Friend is absolutely right to highlight the UK’s world-leading financial services sector. Through the Treasury, we are developing a 10-year financial services strategy and, of course, financial services is one of the pillars of our industry strategy, which we will publish in the spring. We cannot take the UK’s status as a global financial centre for granted. In a highly competitive world, we need to earn that status and work to keep it, and that is what we intend to do.
Patrick Hurley (Southport) (Lab)
The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)
The Government are committed to doubling the size of the mutuals and co-op sector. The creation of Great British Energy will help drive a significant expansion in the number of energy co-operatives, while work to modernise co-op, credit union and mutual law to drive expansion was recently announced by Treasury colleagues. We will work particularly closely with the recently established mutual and co-operative business council on this agenda. We will bring forward further proposals in due course.
Patrick Hurley
Co-operative businesses can be the life- blood of our towns and communities. In my constituency, I have been working with stakeholders and interested parties to bring about a community co-operative bookshop, following the closure of independent bookshops in Southport in recent years due to the cost of living. May I take this opportunity to encourage new expressions of interest in the bookshop, and to ask the Minister to confirm what more support the Government can provide for our co-operative sector, so that towns like mine can see a thriving high street built around our community?
Gareth Thomas
My hon. Friend is absolutely right to underline the positive community impacts that co-operatives, mutual businesses and social enterprises can have not only on our high streets, but in our communities more generally. We recently announced a significant increase in the capital available to the British Business Bank, and that has enabled us to give £150 million of additional support to community banks, or community development finance institutions, as they are officially known. That will help drive more lending to community businesses, potentially including the one he set out, but if there is anything I can do to support the initiative, I would be happy to meet him to discuss it.
Tonia Antoniazzi (Gower) (Lab)
The Minister for Industry (Sarah Jones)
Businesses in Northern Ireland, like businesses across the UK, are crying out for stability, open trade and an environment in which we can break down barriers to growth and investment, and that is what the Government are working across the board to deliver. My Department has a team in Belfast to help stay close to businesses in Northern Ireland and to understand what they need. Of course, we also work closely with Invest Northern Ireland, the Department for the Economy and other key partners. I have spoken with Northern Ireland businesses during my short time in office, and I am encouraged by their passion and resilience.
Tonia Antoniazzi
Northern Ireland businesses, large and small, received just 0.6% of what the Government spent with UK defence companies between 2018 and 2023, compared with 25% in the south-east of England. As my Committee heard when we visited Northern Ireland last week, Spirit AeroSystems, which works on high-value defence and other aerospace contracts, faces an uncertain future, as half of its 3,600-strong workforce in Belfast wait to find out whether their jobs are safe following Boeing’s buy-out of the company and the subsequent takeover by Airbus of only 50% of the work at its site in the city. We all know what happens to supply chains, communities and individuals in these circumstances, so what discussions are Ministers having with Cabinet colleagues, with Airbus, and with other interested parties to safeguard those jobs at Spirit now and to increase Government spend with Northern Ireland defence companies in the future? [Interruption.] Thank you, Mr Speaker.
Sarah Jones
We love a long question, and it was a good one. My hon. Friend is absolutely right to raise this issue, one that we are all of course concerned about. My right hon. Friend the Secretary of State met the global chief executive officer of Airbus last week, and I have met representatives of Airbus, Boeing and Spirit AeroSystems and talked about this issue. We care about those jobs and about the future of our defence industry in the UK—it is incredibly important to us for many reasons—so we are doing what we can to make sure there is a good outcome.
Mr Speaker
This will be a good example of a short question. I call Jim Shannon.
Jim Shannon (Strangford) (DUP)
Challenged already!
In the short time that the Minister has been in her role, she has shown quite clearly that she has a deep interest in Northern Ireland. Defence, light engineering and cyber-security are all vital to jobs and the economy in Northern Ireland, but what assessment has been made of the sustainability and efficiency of Northern Ireland’s agrifood sector, and will the Minister commit to promote the productivity of that industry across the United Kingdom and, indeed, across the world? That is as short as I can make it, Mr Speaker.
Sarah Jones
The agrifood sector is incredibly important —I meet representatives of the sector, and I will do all I can. As always, I am very keen to talk to the hon. Gentleman about what more we as a Government can do to support the sector.
Ms Polly Billington (East Thanet) (Lab)
Sir Oliver Dowden (Hertsmere) (Con)
Baggy Shanker (Derby South) (Lab/Co-op)
Mark Ferguson (Gateshead Central and Whickham) (Lab)
The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)
Working across government with mayors, local authorities and—crucially—local communities, we are beginning to tackle antisocial behaviour and crime, reforming business rates, working with the banking industry to roll out 350 banking hubs, stamping out late payments, empowering communities to make the most of vacant properties, strengthening the post office network and reforming the apprenticeship levy.
Ms Billington
I welcome the new powers delegated to local authorities, enabling them to tackle the blight of empty shop fronts and rejuvenate our local high streets. This will be particularly welcome in East Thanet, where the Ramsgate empty shops action group has been a powerful advocate for addressing this issue. We have a 24% vacancy rate on Ramsgate high street, so what steps are the Government taking to support and encourage local businesses and community projects to take over those vacant properties?
Gareth Thomas
I commend my hon. Friend on her work with the Ramsgate empty shops action group. Her experience on her high street is sadly echoed up and down the country—under the Conservative party, vacancy rates on our high streets shot up. High street rental auctions, which are the new powers that my hon. Friend alludes to, will help local councils to bring vacant units back into use, working with local communities. That will hopefully help to drive co-operation between landlords and councils and make town centre tenancies more accessible and affordable. We are encouraging local authorities to take advantage of those powers. As I suspect my hon. Friend already knows, colleagues in the Ministry of Housing, Communities and Local Government are looking to do further work in this space.
Sir Oliver Dowden
I did not realise you had grouped them, Mr Speaker. Forgive me—a schoolboy error.
What advice would the Minister give struggling businesses in my constituency who are trying to work out how to absorb Labour’s national insurance hike? Would he advise them to increase their prices, to squeeze wages or to cut investment, and can he explain to those businesses how that fits with the Government’s promises to increase growth?
Gareth Thomas
I think the best advice I could give to businesses in the right hon. Member’s constituency is to never vote Conservative again. His and his party’s idea of good economics in Government seems to be to create a huge fiscal hole and leave it to the next Administration to fix it. We are working at pace to try to tackle the difficult economic inheritance that he and his colleagues in Government helped to create. Measures such as the industrial strategy and the decisions we have taken in the Budget—albeit some are difficult—will help to bring back economic stability to this country. In the long run, that will help businesses in his constituency and, indeed, in constituencies up and down the country.
Baggy Shanker
On Small Business Saturday recently, I had the pleasure of visiting Derby’s small businesses of various types, which are the beating heart of our city. However, as our planned city centre regeneration project recognises, empty shops on our high street do not reflect the high-performing, high-technology economy that we are so proud to have in Derby. Building on the new community right to buy, what more can the Department do to ensure that community groups receive the correct business advice and support to use this new right and to breathe new life and vibrancy into our high streets?
Gareth Thomas
I commend my hon. Friend not only for his work recently on Small Business Saturday, but as the leader of Derby council in driving the town centre regeneration work that he mentioned. We are determined to establish a small business growth service to provide better support and information to small businesses so that entrepreneurs in this country can take advantage of new powers to set up small businesses on the high street, perhaps capitalising on the high-tech, high-growth sectors of the economy to which Derby has access, and in that way making sure that we see benefits from the industrial strategy not just for bigger businesses, but for smaller businesses.
Mark Ferguson
My hon. Friend will know from his visit to Gateshead this week some of the fantastic small businesses we have on our high street, but also some of the incredible challenges faced by so many high streets and town centres. With that in mind, will he tell us what the Government are doing on access to finance for small businesses?
Gareth Thomas
Despite the considerable cold, I very much enjoyed my recent visit to Gateshead town centre, and I was impressed by the dynamism of the businesses that he and I met at his instigation in the railway quarter. One of the things we are determined to do is to increase access to finance for small businesses up and down the country. That is why we have provided over £1 billion across this year and next year for the British Business Bank, particularly to drive access to finance for small businesses such as the ones to which he introduced me.
Dame Harriett Baldwin (West Worcestershire) (Con)
One of the ingredients for a successful high street is having a post office in the mix. The Government have inherited a network of 11,500 post offices, and that number has been stable since 2010. Will the Minister commit to supporting high streets by maintaining the scale of the post office network in this Parliament?
Gareth Thomas
Yes, we are determined to maintain and, indeed, strengthen the post office network. I suspect that the hon. Member will recognise that we inherited a Post Office with huge problems, which we are working with the new leadership of the Post Office to begin to tackle. We are looking at what new commercial opportunities there may be for the Post Office, and banking appears to be the most significant one. We are also working with the Post Office to identify some of its infrastructure problems, not least in developing a replacement for the Horizon scheme.
Christine Jardine (Edinburgh West) (LD)
The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)
The parental rights survey 2019 found that 89% of employee mothers took maternity leave and 70% of employee fathers took paternity leave, but take-up of shared parental leave is much lower. In fact, it is disappointingly low, which is why we are committed to a review of the parental leave system. Work is under way to deliver on that, and I will provide an update in due course.
Christine Jardine
I agree with the Minister: it is very disappointing. For many parents, current maternity pay is too low, and the leave system is not flexible enough. A recent report by the BBC said that almost half of new fathers were unaware of what was available to them. The system is skewed, and the take-up is lower among lower earning families. That is particularly important—this was pointed out to me by a constituent in Edinburgh West—for those with multiple births who need not only more time but more financial support during maternity leave. Does the Minister agree that maternity pay levels need to be increased, and that the flexibility of the scheme needs to be improved, as does public awareness?
Justin Madders
The hon. Member makes a number of points, which I am sure we will consider as part of the review we are undertaking. The Employment Rights Bill has a number of important measures to support working families, bringing 1.5 million parents into scope for parental leave and another 32,000 into scope for paternity leave. We are keen to build on that and we want to support families who are in work.
Tristan Osborne (Chatham and Aylesford) (Lab)
The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)
The creative industries are a huge force for good in our country. They were responsible for 2.4 million jobs last year, and more than £124 billion for our GDP in 2022. They are one of eight growth sectors in our industrial strategy. We are working closely with the Department for Culture, Media and Sport, and across Government, to identify what more we can do to draw out even more of the potential growth that Britain’s creative businesses can offer.
Tristan Osborne
As we all settle down for Christmas, we will be watching “Mission: Impossible”, “James Bond”, “Ironclad”, and perhaps even “Call the Midwife”, which were all filmed in Medway—[Interruption.] And also “The Great Escape”, which was not filmed in Medway, unfortunately. How can we make “Mission: Impossible” possible across our country when it comes to new films?
Gareth Thomas
I cannot follow the impressive nature of that question, but I can tell my hon. Friend that in the Budget my right hon. Friend the Chancellor confirmed a new independent film tax credit, which will help to enable the successes that he has alluded to in his constituency and the surrounding area to be spread, potentially, across the country. That will allow more businesses to set up and generate growth and wealth for our country.
Luke Akehurst (North Durham) (Lab)
The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)
No decisions have been taken on the future of any directly managed branches, including in Chester-le-Street in my hon. Friend’s constituency. The Post Office continues to work with local communities, and others, to consider how best to meet the need for post office services in a local area. The Government set minimum access criteria to ensure that 99% of the UK population live within 3 miles of a post office, and those Government-set access criteria ensure that, regardless of changes, services remain within reach of all citizens.
Luke Akehurst
The post office in Chester-le-Street has been at the heart of the community in North Durham since 1936, and offers vital services to my constituents. Does the Minister agree that keeping those services accessible is vital to keeping footfall on our high streets and encouraging other businesses to locate themselves there?
Gareth Thomas
I recognise the significance of the post office in my hon. Friend’s constituency, as indeed I recognise the significance of post offices in my constituency and across the UK. It is important to maintain access to post office services as they play a crucial role in the high street. That is why we are determined to work with the Post Office to strengthen the network, as I alluded to earlier.
Alex Baker (Aldershot) (Lab)
The Secretary of State for Business and Trade (Jonathan Reynolds)
It has been a hugely significant six months for the Department for Business and Trade. After our record-breaking international investment summit and our industrial strategy Green Paper publication, my Department has been engaging with businesses big and small to drive growth. Just this week we have helped to land a £500 million train-building deal with Hitachi, securing hundreds of jobs in the north-east—another promise fulfilled from the election campaign. For smaller businesses we are reforming business rates to breathe new life into our high streets, while launching a new fair payment code, tackling late payments to SMEs, and supporting new high street rental auctions to improve town centres. As we have heard, our brand new business growth service will streamline SME support on everything from finance to exports.
We are also tackling the challenges that we inherited, negotiating a better deal for Tata Steel employees in Port Talbot, while progressing a UK-wide steel strategy. Our Horizon convictions redress scheme shows that we are righting the wrongs of the past for victims of the Post Office scandal. I look forward to working with all hon. Members in the new year, delivering on our plan for change, going for growth, and realising a decade of national renewal. In addition, Mr Speaker, I would like to wish you, all hon. Members, and businesses across the UK a very merry Christmas.
Alex Baker
My constituents still mourn the loss of our M&S outlet in 2015, but we are delighted that Superbowl UK has just opened in Aldershot. These anchor retail and leisure tenants are so vital for our town centres, so what can the Government do to assist communities such as mine to ensure that we can encourage businesses to be the cornerstone and footfall drivers of our town centres?
Jonathan Reynolds
I very much agree and welcome the question from my hon. Friend. I certainly recognise that high streets are going through a transition from being primarily retail centres to now having much more of a mix of retail, hospitality and leisure, and I am delighted to hear about Superbowl’s investment in Aldershot. I am not nostalgic for a town centre or a high street that has passed; it is about how we do that transition into the future. There is great practice around the country, whether in Aldershot or in Walthamstow, where I was recently, and the Government’s agenda is committed to delivering that.
Mr Speaker
I remind the Secretary of State that these are topical questions, and contributions should be short. I come to the shadow Secretary of State for a good example.
Andrew Griffith (Arundel and South Downs) (Con)
One of the great British innovations is the gift of free trade, lifting billions out of poverty abroad and increasing prosperity at home. Thanks to the Conservatives, this week the UK proudly joined the comprehensive and progressive agreement for trans-Pacific partnership, a bloc that includes some of the world’s fastest-growing economies, as well as major trading partners and investors, such as Japan and Canada. With the Government having precious little else to show on growth so far, will the Secretary of State update the House on when he expects to conclude free trade deals with the Gulf, with India and with the US?
Jonathan Reynolds
At least we have some things we can agree on there, which is a nice start to the Christmas period. I agree that the UK has always been and must be a champion of free trade in a world where trade issues will be politically significant in 2025. We can work together on that future. We believe that we have progressed the Gulf Co-operation Council trade deal significantly. The shadow Secretary of State will know that there were some problems between the previous Government and some countries in the GCC, particularly the UAE, where the relationship had unfortunately got into a difficult place. We have repaired that and the talks are going well. It is always a mistake to put a deadline on those, because it can limit our negotiating potential. When it comes to the US, we will see what happens with the President-elect, but I am looking forward to negotiation and discussion about that.
Andrew Griffith
The Secretary of State can count on our support to bring those deals forward. It pains me to say it, but as we have heard today, business confidence is at an all-time low, bar the pandemic. Hiring is collapsing and companies are fleeing. Labour has talked growth, but it has delivered decline. The one game changer now would be a US trade deal. Will the Secretary of State urge the Prime Minister to stop obsessing about going backwards into the EU and agree with me at this Christmas time that the best gift for British business would be for the Prime Minister to get on a plane to Washington and talk trade with President Trump?
Jonathan Reynolds
I am afraid that the shadow Secretary of State’s analysis is too simplistic. The US is a major trade partner and always will be, but he will know that so is the European Union and another area is our trade with China. The future for the UK is being positioned to get the maximum benefit from all those key markets. The kind of agreement that he puts forward would have major ramifications for British agriculture in particular, and he knows the issues associated with that. We cannot consider one of those trade negotiations without considering the impact on all those key trading relationships. I ask him to consider the issue in a more holistic and complete way.
Mr Alex Barros-Curtis (Cardiff West) (Lab)
Jonathan Reynolds
I might be biased, but I thought that the international investment summit that we held was the best day of this year. That was not just because of the investment and the real tangible jobs that came from it, but because of the clear, simple message that we could put out there: stability, openness and improving the investment environment. I am delighted to hear the news from Wales. Not only will we support that, but I appreciate the strong working relationship we have on such issues as Port Talbot and getting a better deal for that community and the workforce. We have worked hand in glove with the Welsh Labour Government, and it strengthens the things we are able to do together.
Sarah Gibson (Chippenham) (LD)
Tomorrow—on Friday the 13th—the EU’s general product safety regulation comes into effect. Businesses are telling me that the additional costs will mean that they can no longer sell to the EU and to Northern Ireland. What steps is the Department taking to ensure that small businesses are supported as the regulation comes into effect?
Justin Madders
As the hon. Lady rightly pointed out, the regulation comes into force tomorrow. Actually, it covers things that most businesses are doing already, but we have provided guidance for businesses, including online marketplaces, on how the regulation will apply in Northern Ireland. We will continue to engage with businesses and online marketplaces to ensure that we are supporting them in dealing with this new regulation.
Perran Moon (Camborne and Redruth) (Lab)
Jonathan Reynolds
I welcome my hon. Friend’s question, and I welcomed the time we spent together at South Crofty tin mine, which was also one of my favourite visits of the year. This is a hugely exciting area, and the opportunities for his area are particularly exciting. What we need is an open, transparent trading system where these products will have the certainty of access to markets, which will unlock the ability to use those deposits to our and our allies’ mutual interests.
Calum Miller (Bicester and Woodstock) (LD)
The Minister for Trade Policy and Economic Security (Mr Douglas Alexander)
There is an established process in taking forward the Government’s discussions in relation to the mandate. On animal welfare standards, the Secretary of State has already alluded to how there was clearly considerable divergence during the previous attempts to conclude a free trade agreement with the United States. I assure the House that we as a new Government continue to take issues of animal welfare extremely seriously.
Alice Macdonald (Norwich North) (Lab/Co-op)
Jonathan Reynolds
I recognise what my hon. Friend is saying in her question, which is that skills will be one of the biggest, if not the biggest issue for businesses going forward. Of course, that sits in the Department for Education and we work closely with colleagues on that. We have the creation of Skills England and the reforms to the apprenticeship levy to create the growth and skills levy. Indeed, I think that my CEO call next week—I do those regularly—will be with the Secretary of State for education, where we will discuss this problem. Businesses from her constituency would be welcome to join that.
Alison Bennett (Mid Sussex) (LD)
Jonathan Reynolds
The hon. Member’s question is perhaps more for the Secretary of State for Transport, but she skilfully put that to me. I assure her that I will work with the Secretary of State for Transport to do that. How we assemble investment sites is a huge issue, and how we can work better across Government with local partners is also a key issue for us.
Chi Onwurah (Newcastle upon Tyne Central and West) (Lab)
The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)
My hon. Friend will be aware that the Chancellor of the Exchequer recently announced £20.4 billion in investment for research and development for the next year, which will help to drive even more of the type of technological investment that she rightly champions. We are also working with small businesses to encourage them to adopt more digital technologies through the digital adoption taskforce.
Alison Griffiths (Bognor Regis and Littlehampton) (Con)
Businesses in Bognor Regis and Littlehampton are at the sharp end of the Bank of England’s business confidence survey. Unlike the Chancellor and the Secretary of State, they know that her Budget and the Employment Rights Bill are a recipe for higher prices, higher inflation, higher interest rates and higher unemployment. Is that the growth that the Secretary of State had in mind?
Jonathan Reynolds
We have had seven or eight of the same question from the Opposition Benches, and not a single answer to how they would pay for the promises that they make. We are getting on with fixing the foundations, looking to the future and improving the business environment across the board. That is why businesses in the hon. Lady’s area and mine should look to 2025 with real confidence.
Euan Stainbank (Falkirk) (Lab)
I declare an interest as co-chair of the all-party parliamentary group on British buses. The Secretary of State will be aware of the consultation on 160 jobs at Alexander Dennis in my constituency. In September, it cited an increasingly unlevel playing field over a number of years for domestic bus manufacturers. That shows the requirement for a clear industrial strategy. What assurances can the Minister give me, as part of implementing the industrial strategy, that the Labour Government are working to level the playing field for domestic manufacturers?
Jonathan Reynolds
I recognise the issue and I welcome my hon. Friend’s raising it at the annual dinner of the Society for Motor Manufacturers and Traders. It matters to this Government that we make these products in the UK. There have been specific procurement issues, mainly with local areas. I promise him the meeting that he needs to take that forward, but I assure him that the industrial strategy will cover this issue.
Lisa Smart (Hazel Grove) (LD)
My constituent Kirsty is self-employed and is looking to adopt a child, but she does not qualify for adoption leave or adoption pay and, because she is not having her child biologically, she does not qualify for maternity allowance. Would the Government support changing that, whether through the Employment Rights Bill or otherwise, so that brilliant future parents are not put off from adopting because they cannot afford it?
Justin Madders
That is an interesting question. There is a great interplay with rights for self-employed people. We are committing to a review on that in due course, together with a wider look at the parental leave system. We will get back to the hon. Lady on that.
Sam Rushworth (Bishop Auckland) (Lab)
I welcome this Government’s commitment to getting more disposable income in the pockets of working people. At Christmas time a lot of people will want to buy concert tickets; what conversations is the Minister having with Cabinet colleagues on reforming the secondary ticketing market?
Justin Madders
Hopefully, we will make an announcement very shortly about plans in that area.