Jade Botterill (Ossett and Denby Dale) (Lab)
The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)
Small businesses are critical to our economy and to the future of all our communities. We will bring forward our small business strategy later this year to improve the environment for small businesses to grow. As part of that work, we are consulting widely with small businesses and other stakeholders on the design of the business growth service, which we will launch later this year.
Jade Botterill
Before Christmas, I was pleased to meet some of the many microbusinesses operating in Osset and Denby Dale. They told me that they previously felt that they had fallen through the cracks of Government policy and economic ambition. How will the Minister’s business growth service assist those microbusinesses, as well as broader measures that the Government are taking to help smaller organisations to grow?
Gareth Thomas
I commend my hon. Friend on her support for the microbusinesses in her constituency. We want to get behind all those who are willing to take the risk to set up their own business. They help to make our communities more vibrant, they create jobs, and they generate the tax revenues that make our country stronger. The business growth service will be designed to get businesses quicker access to the support they need from the Government, such as applying for a start-up loan, access to training and management support and help with exports.
Jim Shannon (Strangford) (DUP)
I thank the Minister for his positive response to that question. In Strangford, small businesses are the backbone of the community, and many people in those businesses work from home. The business growth policy may be specific to England, but what discussions has the Minister had with the Department for Business and Trade in Northern Ireland to ensure that we benefit?
Gareth Thomas
The hon. Gentleman has always been a great champion of small businesses in his constituency and in Northern Ireland more generally. We want the business growth service to complement the support that the Northern Ireland Executive and the Welsh and Scottish Governments already give their businesses, to improve the quality of advice and support available to all businesses in all parts of the UK.
Jerome Mayhew (Broadland and Fakenham) (Con)
The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)
The Government are pursuing the reforms needed to deliver sustained long-term growth. Developed and delivered in partnership with business, we have taken significant steps, including launching a consultation on the modern industrial strategy, establishing the national wealth fund, transforming our planning rules, committing to a 10-year infrastructure strategy and introducing the Employment Rights Bill to boost productivity. We have also added extra protections for small businesses by increasing the employment allowance and freezing the small business rate multiplier.
Jerome Mayhew
I think the Minister may have misunderstood my question; I asked how he would reduce employment costs. The president of the Confederation of British Industry recently said that, because of things like the Employment Rights Bill, employers will be laying people off and will be less likely to employ, and that is before the national insurance tax on employment imposed by this Government. Does the Minister accept responsibility for the increase in unemployment that we are already seeing?
Justin Madders
I think it is something of a stretch to say that a Bill that is not even law yet, most of the provisions of which will not come into force until next year, is driving unemployment already. I quote back to him what the head of the CBI said yesterday about our growth plan. He said:
“This positive leadership and a…vision to kickstart the economy and boost productivity is welcome.”
Madam Deputy Speaker (Ms Nusrat Ghani)
I call the shadow Secretary of State.
Justin Madders
I thank the shadow Secretary of State for his question. We believe that a 0.4% increase in the overall pay bill, which is what we have estimated the Employment Rights Bill will mean for businesses, is actually a fantastic return for greater security at work, greater pay, better staff retention, increased productivity, making jobs more secure and family friendly, banning exploitative zero-hour contracts, supporting women in work in every stage of life, providing a genuine living wage, turning the page on industrial relations, and bringing an end to fire and rehire. This is a pro-business, pro-growth, pro-worker agenda from the Government, and we are determined to deliver it.
Sarah Owen (Luton North) (Lab)
The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)
The Government understand the effects that fireworks can have on animals and vulnerable individuals. Consumer fireworks have a 120 dB noise limit, but numerous low-noise options are available on the market at around 90 dB or below. This year’s fireworks public information campaign has highlighted low-noise fireworks and the importance of considerate use. Additionally, I am meeting businesses, consumer groups and charities at the conclusion of the fireworks season in the next coming week or two to discuss their concerns.
Sarah Owen
Antisocial fireworks keep our constituents awake, cause alarm for pets, and seriously affect people with post-traumatic stress disorder or special educational needs. I know the Minister heard extensively from colleagues, campaigners and charities on this during the Westminster Hall debate on my Bill. Will he meet me to discuss the implementation of the common-sense measures presented in my Fireworks Bill, including lowering the noise limit on fireworks sold to the public, closing the licensing loophole and reviewing social media and online sales?
Justin Madders
It is always a pleasure to meet my hon. Friend and I am happy to do so. Indeed, we will see whether we can get her to come along to some of the other meetings that we are holding with interested groups, some of which she has mentioned.
Mr Gagan Mohindra (South West Hertfordshire) (Con)
May I wish a belated happy Chinese new year to all those who were celebrating yesterday? One beauty of our great country is its diversity, but with that comes causes for celebration throughout the year. My own community in South West Hertfordshire celebrates Diwali, Eid, Christmas, Chinese new year and other events, which often entails the use of fireworks. There is an expectation of fireworks and the noise associated with them at the main events of Christmas and new year, so pet owners inevitably take safeguarding measures then, but given the likelihood of fireworks throughout the year, may I urge the Minister to get on to this Bill quickly, ensuring that we do not stifle the celebrations, but that we do protect our animals and those vulnerable children who may be affected by noise?
Justin Madders
I thank the hon. Member for his question. He is right to recognise that fireworks are used at a number of events throughout the year, but it would be wrong to characterise that as people having to expect that there will be noise. There is now a sufficient number of lower-decibel products on the market for everyone to act more responsibly, and we will be exploring that in our meetings over the coming weeks.
Alan Strickland (Newton Aycliffe and Spennymoor) (Lab)
Paul Waugh (Rochdale) (Lab/Co-op)
The Minister for Industry (Sarah Jones)
This Department and, indeed, Departments across Government are working extensively on developing our industrial strategy, which the Conservative party opposes, but which business and industry welcome. Last month, we launched the Industrial Strategy Advisory Council, comprising a very impressive group of the UK’s top business leaders, policy experts and trade union leaders. My right hon. Friends the Chancellor and the Secretary of State for Business and Trade attended the council’s inaugural meeting on 17 December. In addition, we are currently analysing more than 3,000 responses to the Industrial Strategy Green Paper from businesses, academics, think-tanks and unions, and their insights and feedback are incredibly valuable as we develop the strategy.
Alan Strickland
I strongly welcome the inclusion of defence in the draft industrial strategy and was pleased yesterday to host a roundtable in Sedgefield with the Minister for Defence Procurement and Industry. Many of the innovative small and medium-sized enterprises that we talked to spoke of the struggles that they have with red tape, bureaucracy and contracting with Departments across Whitehall. How will Ministers grab the opportunity of the industrial strategy to remove this red tape, which too often can thwart SME growth?
Sarah Jones
I am really pleased my hon. Friend held that roundtable. It is quite a turning point to have an industrial strategy with defence as one of the sectors; building new relationships across Departments with colleagues who work in defence is a really powerful and important thing to do. He speaks to a wider problem face by a lot of industry when it comes to dealing with Government agencies and Departments. We are working hard to make these things easier, because growth is our priority and we have to break down those barriers.
Tracy Gilbert
It is essential that the Government’s industrial strategy creates manufacturing jobs across the country, including in my constituency. The RenewableUK offshore wind industrial growth plan shows the UK can be a global technology leader in advanced turbine tech, foundations, electrical systems and cables. Will my hon. Friend commit to using our industrial strategy to ensure there is growth in these areas to put British manufacturing at the heart of the clean energy transition?
Sarah Jones
I thank my hon. Friend for her question, for her defence of her constituency and for her ambitions, which we share. I believe the report she refers to came out before this Labour Government came to power. With our new policies and the new drive and ambition from our Secretaries of State for Business and Trade and for Energy Security and Net Zero, we are powering forward with our renewable agenda, and we will make sure that all of our growth driving sectors speak to my hon. Friend’s area and everyone’s area of the country and drive growth across the board.
Sarah Coombes
Manufacturers in my constituency are really excited about the upcoming industrial strategy and all the growth that will bring. However, steel and aluminium businesses in particular are concerned about the upcoming carbon border adjustment mechanism, the gap with the EU, and whether the whole system will be ready for implementation. If we do not get it right, the CBAM will have a big impact on our ability to trade and on growth, so can the Minister assure me she is going to be working with the Treasury to ensure we get this right and that it supports manufacturers in the west midlands?
Sarah Jones
I know my hon. Friend will hold this Government to account on what we are doing and how we are going, and she will push, and already has done, to make sure we are doing everything we can for the industries in her area. The CBAM will be introduced in 2027, and she speaks to concerns that I have heard in conversations around steel in particular, which is very important to this country. That is why we are developing a steel strategy, which will set a future direction of travel for steel, but we are working with the EU and with industry here to make sure the CBAM works and does what it is supposed to do.
Paul Waugh
Andy Burnham’s Atom Valley mayoral development zone is creating a world-class supercluster for advanced manufacturing right across 70 million square feet in Rochdale, Oldham, Bury and Middleton. Rochdale’s Kingsway business park will be home to the SMMC—the sustainable materials and manufacturing centre—a world-class cutting-edge research centre. Will the Minister join me in supporting the SMMC, and perhaps arrange a visit either by herself or the Secretary of State to see what is happening with the jobs of the future in Rochdale?
Sarah Jones
I thank my hon. Friend for bringing to the House the work that is going on for the Atom Valley development zone, which is incredibly important and exactly what we want to see. The Mayor of Greater Manchester is to be congratulated for his leadership in this space as well. I am very interested in the work my hon. Friend refers to, not least because of the critical minerals strategy we are developing and the graphene work that I know will be under way in the manufacturing centre hub, so I very much look forward to talking further to him about what is happening and how we can help.
Sir Desmond Swayne (New Forest West) (Con)
Why is it that the Government’s energy policy is driving uncompetitive energy costs in absolutely the wrong direction? Sir Jim Ratcliffe has pointed out that the principal threat to any strategy is actually the uncompetitive costs for those enterprises that will have to populate it.
Sarah Jones
This Government inherited very high energy costs from the previous Government, who had taken no action to make our country more energy secure. We are powering through to have clean, green, home-grown energy that will bring costs down and make sure we are secure as a country and not reliant on the whims of global leaders and the price of oil and gas. We will bring those costs down and we will support our industry, which I am afraid the previous Government failed to do.
Chris Law (Dundee Central) (SNP)
Over the past week, the UK Government have committed to support a runway in London, a football stadium in Manchester and a science corridor for Oxford and Cambridge, yet for the past year, Conservative and Labour Governments have failed to act to secure the long-term future of Grangemouth, after INEOS announced the closure of the oil refinery. Despite general election promises to step in and save the plant, why are the Labour Government willing to jeopardise jobs at Grangemouth, the country’s energy security, which the Minister has just spoken passionately about the need to secure, and the wider industrial strategy through this inaction?
Sarah Jones
The hon. Member will be pleased to hear that we have re- established a working group with the Scottish First Minister and the Welsh and Northern Irish leaderships to make sure we are working collectively, because we do not want to take a party political approach to the growth of all our nations. We are collaborating well with the Scottish Government on Grangemouth, where we are working at pace and putting in investment and support. We are working to transition people from North sea oil and gas into the new energies of the future. There is the passport that we published, and we have set up Great British Energy, which will be headquartered in Aberdeen. A lot of work is going on, and we need the Scottish Government to support us in that work. We will work in partnership, because that is what will create good jobs.
Sir Gavin Williamson (Stone, Great Wyrley and Penkridge) (Con)
The chemical industry is an important employer in my constituency, with the HEX Group and SI Group employing many people. As mentioned, Sir Jim Ratcliffe is already highlighting the extinction of the British chemical industry. My chemical manufacturers need to ensure that they are buying energy at the same price as manufacturers in Germany, the Netherlands and France. When will they be able to do that?
Sarah Jones
The chemical industry has been suffering for many years because of the previous Government’s economic policies, crashing the economy under Liz Truss and failing to deal with energy prices over multiple years. I have met the chemical industry. It is an important part of our economy, and we need to do what we can to protect it. I am having conversations, and we are building our energy policies. We are building our industrial strategy.
Sarah Jones
Word salad? Gosh. That abuse from the Opposition Front Bench has cut me to the core. The industrial strategy has set out eight sectors that will turbocharge the economy. Across all those sectors lie our foundational sectors, of which the chemical industry is one. We will support that industry in a way that his Government failed to do.
Dame Harriett Baldwin (West Worcestershire) (Con)
I will try to avoid a word salad. We have heard from various different industrial sectors how important it is to have stable and predictable energy costs. This month has seen little sun and only intermittent wind, so we have been heavily dependent on imported oil and gas. Are Ministers in the Department for Business and Trade challenging the Energy Secretary over his policies?
Sarah Jones
I am disappointed by the hon. Lady’s approach to this matter, and I am disappointed by the Conservative party’s overall abandonment of previously strongly held views about the need to balance climate change with our economy. It is a fact that we are moving faster towards renewable energy. Last year, 50% of our energy came from renewables for the first time. We are growing them at pace because they are cheaper. Onshore wind is the cheapest form of energy we have, solar is very cheap and floating offshore wind brings us huge opportunities. Renewables will bring our costs down and make sure we are energy secure, and they go hand in glove with growth, as the Chancellor set out in her speech yesterday.
Dame Harriett Baldwin
The Minister’s Government have changed policy to not issue any new licences for domestic oil and gas, so we will become more dependent on imports at times when solar and wind are not working, unless we can increase nuclear generation. It is Nuclear Week in Parliament, so what pressure is she putting on the Energy Secretary to make new nuclear an important part of our industrial strategy?
Sarah Jones
I sit jointly in the Department for Business and Trade and the Department for Energy Security and Net Zero, so the hon. Lady can be reassured that I talk to my colleagues and am working with them. Indeed, I am leading on hydrogen and carbon capture, which is an important part of the mix. We are clear that nuclear is an important part of our future and that the strongest approach to deliver energy security and bring prices down is to have all the opportunities available to us and to build at pace. That is why we are trebling our solar, doubling our wind and supporting big nuclear as well as small modular reactors. She can be reassured that we are putting a strategy in place, which the previous Government failed to do.
Mrs Sureena Brackenridge (Wolverhampton North East) (Lab)
The Minister for Industry (Sarah Jones)
I delighted to tell my hon. Friend that we are working hard on our steel strategy. Immediately after we have finished these questions, I will be going to Sheffield to talk to the industry about future demand. Steel is an important industry for our future, to which we have made a £2.5 billion commitment. We will ensure that we turn around the decline we saw under the previous Government and deliver a steel industry fit for the future.
Mrs Sureena Brackenridge (Wolverhampton North East) (Lab)
The steel industry is an important part of Wolverhampton North East’s heritage and must remain a part of our future. Will my hon. Friend outline how the £2.5 billion UK steel strategy and the new steel council will boost competitiveness and secure jobs at Tata’s Steelpark in Wednesfield, which is the UK’s largest processing and distribution centre?
Sarah Jones
I thank my hon. Friend for standing up for her community and protecting her industry. I would be happy to have a conversation with her about the changes she thinks we need to make.
Steel output in the UK fell by 49% in 2021, by 30% in 2022 and by 11% in 2023—what an awful thing to have happened to our industry. We need to turn that around. We do not underestimate how hard that will be, but we are putting in place the money, the policies and the Government dedication to ensure that we support a thriving steel industry.
Bradley Thomas (Bromsgrove) (Con)
Sarah Bool (South Northamptonshire) (Con)
The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)
We are continuing to work with colleagues across Government to develop a programme that will revitalise the nation’s high streets and support businesses. We will publish a small business strategy later this year, and high streets will be a key pillar of that. We have already committed to continuing funding for business growth programmes such as the growth hub network and announced plans for a new business growth service.
Bradley Thomas
Yesterday, Bromsgrove received the devastating news that it is about to lose both its Lloyds and Halifax bank branches in the town centre. Those banks are a lifeline to many small businesses, particularly those run by independent small entrepreneurs, as well as many residents who use their banking facilities on probably a weekly or daily basis. Does the Minister agree that banking hubs can be part of an ongoing solution to retain banking services in our towns? Will he support my campaign for a banking hub in Bromsgrove? Will he meet me to make that a reality?
Gareth Thomas
I recognise that there will be a lot of concern in the hon. Member’s constituency following that news yesterday. I agree that banking hubs can make a significant difference, which is why we have been quick to roll out more than 100 of them. Plans for another 76 have already been developed and we are committed to rolling out 350 in total. In the spirit of one Thomas trying to help another Thomas, I am happy to meet him.
Sarah Bool
Our small businesses are the lifeblood of our high street and often give young students their first opportunity for a job on a Saturday or in the holidays. However, one of my local small business owners says that she can no longer afford such roles because of the increase in employer national insurance contributions and changes to business rates, among other things. What will the Government do to support our young people into jobs when small businesses are left in that awful position?
Gareth Thomas
The hon. Lady might want to check again with the business she refers to, because, in the most recent Budget, the employment allowance was raised to some £10,500, which will help every small employer’s national insurance bill every year, and should ensure that more than 1 million firms benefit. That is a very practical measure; more broadly, on the point about national insurance contributions, she will know that Labour inherited a very difficult financial situation because of mistakes made by the Conservatives, and difficult decisions have had to be taken.
Brian Leishman (Alloa and Grangemouth) (Lab)
Small local businesses in Grangemouth such as pubs, restaurants, cafes, hairdressers and garages all rely on the custom that they receive from the workers of the Grangemouth refinery, but the Government have been very passive in allowing the refinery to close, thus impoverishing the local community. What message do the Government have, first for the refinery workers who face redundancy, and secondly for the small local businesses that rely on their custom?
Gareth Thomas
In her speech yesterday, my right hon. Friend the Chancellor set out a series of measures that the Government want to take to boost growth across the country and benefit every part of the UK, from investing in modern road and rail systems to expanding airport capacity, rebalancing the planning system and driving investment in cheaper renewable energy, and by creating a national wealth fund that can back the new technologies of the future. I would be happy to meet my hon. Friend to discuss the specific concerns he has mentioned, if he thinks that would be useful.
Euan Stainbank (Falkirk) (Lab)
Falkirk High Street is the beating heart of our district, with recent additions including Barracuda chippy, El Toro Gaucho steakhouse, Greek Theory restaurant and Rock Bottom beer hall. Many Falkirk town centre businesses still raise with me the hardship they have faced because of cost rises and utility, rent and parking increases over a number of years, as well as rental value threshold changes by the Scottish Government, which have contributed to decreased footfall and failing business over a number of years. While I welcome the Government’s commitment to shifting the burden away from the high street, will the Minister outline what further steps he is taking to support my high street, and what engagement he has had with the Scottish Government to support shifting the rate burden away from Falkirk High Street taxpayers?
Gareth Thomas
I referred to the establishment of the business growth service in answer to an earlier question. We are working with the Scottish Government to begin to think through how that service can support businesses in Scotland and complement the support already provided by the Scottish Government. We are clear on the need to reform business rates to support retail, hospitality and leisure businesses on the high street. I am very happy to meet my hon. Friend if he thinks there are further initiatives we can take to help small businesses in Falkirk.
Madam Deputy Speaker (Ms Nusrat Ghani)
I call the Liberal Democrat spokesperson.
Clive Jones (Wokingham) (LD)
R Young Art Gallery is the last art gallery in Wokingham town centre and a proud feature of our high street. However, political inactivity on business rates reform means that it is on the precipice of closing. I was shocked to learn that it is the impending cuts to business rate relief, with no measures in the short term to provide financial support, that have led the owner to fear for the survival of his business. High streets across the country continue to struggle. What is the Minister doing to ensure that small, independent businesses such as R Young Art Gallery are supported?
Gareth Thomas
One reason why the Conservatives lost the confidence of the British business community was that despite repeated promises to reform business rates, they took no steps to do so. We announced plans in the Budget, back in October, to reform business rates and introduce permanently lower rates for retail, hospitality and leisure businesses. The Conservatives were going to end business rates relief for retail, hospitality and leisure; we have chosen to extend it. We also announced in the Budget that we were looking at what further steps we could take on business rates reform.
Mohammad Yasin (Bedford) (Lab)
Steve Race (Exeter) (Lab)
The Minister for Industry (Sarah Jones)
Through increased inward investment, we can innovate, create jobs and deliver on our growth mission to become the fastest-growing nation in the G7. We have wasted no time: on top of the £63 billion raised at our international investment summit, our new national wealth fund has already leveraged £1.6 billion of private sector investment, and we have outlined ambitious plans for planning reform alongside a modern industrial strategy to secure record levels of investment.
Mohammad Yasin
I am honoured to have been appointed as the UK trade envoy to Pakistan. Given the growing financial pressure on UK universities, with several leading institutions announcing job cuts amid the deepening funding crisis, what steps is the Department taking to foster stronger educational partnerships with Pakistan to help alleviate financial pressures in the sector in the UK, while supporting Pakistan’s educational goals?
Sarah Jones
I congratulate my hon. Friend on his appointment as the trade envoy to Pakistan. I can think of no one better, and I know he will make a big difference in that role. The Government took the decision to reappoint Professor Sir Steve Smith as our international education champion to ensure that the UK-Pakistan education partnership’s work continues as part of the international education strategy, which is now jointly led by the Foreign, Commonwealth and Development Office, the Department for Education and the Department for Business and Trade. Led by Sir Steve, the UK has worked closely with the Pakistan Higher Education Commission on revising Pakistan’s new transnational education policy. That work will continue, and I am sure my hon. Friend will bring great help to it.
Steve Race
The south-west is home to an incredibly important economy based on defence, food security, space, maritime, and, in Exeter, life sciences and climate tech and research. We are also home to huge green energy potential, utilising floating offshore wind. However, we currently need investment in our port facilities so that the new green jobs will be based in the south-west, not in France or elsewhere. Will the Minister meet me, along with colleagues and the sector, to discuss to the future of green energy generation in the south-west?
Sarah Jones
I thank my hon. Friend for his question. I saw the talent and potential for myself when I visited Exeter in September for Great South West’s annual conference. I am visiting the region again in a few weeks, because there is huge potential, huge excitement and huge opportunities to grow. As he knows, there is £1.8 billion from the national wealth fund to invest in our ports. I am very happy to meet him and others to see what potential we can discuss.
Madam Deputy Speaker (Ms Nusrat Ghani)
I call the Liberal Democrat spokesperson.
Clive Jones (Wokingham) (LD)
I declare an interest: a family member has shares in a medical company.
In the United States, President Trump created chaos by freezing funding for the National Institutes of Health, and his nominee for US Health Secretary is an anti-vaccine conspiracy theorist. The United Kingdom has the perfect opportunity to seize this moment and make ourselves a beacon for global research investment. Already, Wokingham has many pharmaceutical businesses, such as Becton Dickinson and Hollister. What steps is the Minister taking to ensure we attract global life sciences sectors to the UK?
Sarah Jones
I was in Davos last week meeting representatives from the life sciences industry and talking about the huge potential for growth that we have in the UK. One of the eight sectors we have identified as part of the industrial strategy, is life sciences, where we have huge talent and huge skills. We need to build on that and be really ambitious in what we can deliver. Through the industrial strategy and the work with the brilliant industries we have in this country, we can do just that.
Sir John Whittingdale (Maldon) (Con)
The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)
As the Chancellor of the Exchequer said only yesterday, we are driving forward planning reforms, boosting capital investment by over £100 billion over the next five years, and creating the national wealth fund. We are launching the business growth service and will soon publish our modern industrial strategy, which will be unreservedly pro-business. Business leaders, not surprisingly, have backed those measures.
Sir John Whittingdale
But the Minister will be aware that in the last few weeks the CBI, the Institute of Directors and the London chamber of commerce have all said that business confidence is plummeting. Given the tsunami of national insurance contribution increases, business rates increases and employment cost rises, is it not hardly surprising that confidence is being destroyed? Are the Government, rather than promoting growth, not actually destroying it?
Gareth Thomas
I think the right hon. Gentleman needs to check his sources for comments from business leaders. Only yesterday the British Chambers of Commerce, the CBI and the Federation of Small Businesses were making very positive comments about our plans for growth, and last week, interestingly, PwC published its annual survey of global CEOs to reveal that Britain was the second most attractive country in the world in which to invest. That is something that I do not think the party opposite ever achieved.
Catherine Atkinson (Derby North) (Lab)
Business confidence increases when businesses know that they have the skilled workforce they need in order to grow. We have just had Nuclear Week in Parliament, and it was a pleasure to host Rolls-Royce and its apprentices. Its nuclear skills academy is providing a pipeline of talent, and the same is needed across other industries—from technical skills to creative skills, and from multinationals to small businesses. What cross-departmental discussions have Ministers had about helping businesses of all sizes to provide skills opportunities for our future workforce?
Gareth Thomas
I pay tribute to my hon. Friend for her support for Rolls-Royce, which is one of our great British companies leading the way in many export markets across the world. Only yesterday I was discussing with the Minister for Skills our plans to reform the growth and skills levy to make it easier for businesses such as Rolls-Royce to recruit apprentices and find the talent that they need to continue to be successful.
Greg Smith (Mid Buckinghamshire) (Con)
I begin by drawing attention to my entry in the Register of Members’ Financial Interests.
When consumer confidence is low, business confidence is low, and nowhere is that more visible than in our automotive sector, with UK car production slumping to its lowest level since 1954. Autocar magazine warned today that the zero emission vehicle mandate
“is currently the industry’s biggest headache, as…consumer demand is not there to meet the stringent regulations which are increasing each year.”
When policy fails, it is sensible to admit it and change course. Will the Minister accept that the ZEV mandate flies in the face of what consumers actually want, and that a radically different path is required to boost business confidence in our automotive sector?
Gareth Thomas
No, I do not accept that, and I would gently remind the hon. Gentleman that the policy to which he has referred was introduced by his party. I recognise that there are many aspects of the Conservative party’s record about which he and his colleagues are probably embarrassed. The Liz Truss Budget—which the shadow Secretary of State, the hon. Member for Arundel and South Downs (Andrew Griffith), helped to write—did huge damage to our country and to consumer confidence. The measures that the Chancellor announced yesterday, for example, will drive growth forward, and that is one of the reasons why businesses backed them so strongly yesterday.
Greg Smith
It normally takes longer than six months for a Government to drift that far from reality. The Society of Motor Manufacturers and Traders has predicted that just 775,000 cars will roll off production lines in 2025, compared to 1.3 million in 2019. Today’s edition of The Telegraph reports:
“The slump has been accelerated by a slowdown in demand across Europe, particularly by drivers shunning new electric vehicles”.
Why does the Minister persist in a policy to undermine our automotive businesses by forcing them to make a product that people just do not want to buy? Is it not time to get the state out of the way, let our innovators innovate, and boost automotive businesses’ confidence by letting them deliver to actual consumer demand?
Gareth Thomas
The hon. Gentleman seems to have forgotten the extra investment that Nissan has announced, and the extra investment that has been announced by a number of other car manufacturers. He and his colleagues were very clear in opposing the measures that we took in the Budget, including measures that backed investment in the automotive sector, and they set out no plans to pay for that investment. I gently encourage him to reflect a little further on the mistakes that his party made in government, which have caused some of the problems that we are having to sort out now.
Rebecca Smith (South West Devon) (Con)
The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)
The Post Office has the freedom to operate the branch network within the parameters set by the Government. We protect the network by setting minimum access criteria so that, in urban and rural areas, everyone has easy access to their nearest post office. Those criteria ensure that however the network changes, services remain within local reach of all citizens.
Rebecca Smith
The community of Plymstock in my constituency saw its main post office close in September 2021, when Morrisons closed more than 80 of its newsagents across the country; the post offices were essentially collateral damage. Despite the best efforts of the community, my predecessor and councillors—including me, at the time—since the Post Office has downgraded the franchise on offer from main branch to post office local, it has been impossible to secure an operator due to the financial unviability of the model. Yesterday, the final local branch announced that it will close later in the year. What is the Minister doing to ensure that sustainable joint post office and banking services replace closing branches in constituencies like mine?
Gareth Thomas
We have supported the Post Office in taking measures to increase sub-postmaster pay, to make it a more attractive profession to come into, in order to deal with precisely the issues that the hon. Member set out. She will understand that I do not have specific knowledge of the issues around the post office in her constituency, but I am always happy to challenge the Post Office on constituency issues, so if she would like to write or speak to me about this afterwards, I would be happy to look at the issue in more detail.
Bob Blackman (Harrow East) (Con)
The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)
As the Chancellor announced yesterday, the Secretary of State will travel to Delhi in February to relaunch trade talks with India. Work is under way across Government to prepare for those negotiations as we seek a deal that drives economic growth. An agreement with India, projected to be the fourth-largest global importer by 2035, could provide further opportunities for businesses across the UK and further unlock growth.
Bob Blackman
I thank my constituency neighbour for that update. The previous Government had more than 15 rounds of trade talks with India before the general election, in both India and the UK. Will the Government ensure that we in the UK gain access to the services market in India, which has previously been denied to UK firms? That is the key issue in our negotiations.
Gareth Thomas
If I remember rightly, the hon. Member and I were probably the two most enthusiastic Members of this House for a trade deal with India—me slightly more than him, I think. We are determined to do everything we can to secure a trade deal with India. He will forgive me, I am sure, if I do not give a running commentary on our priorities for those trade talks with India, but they represent a significant prize for the UK if we can reach an agreement. The Secretary of State and the Minister for Trade Policy and Economic Security are determined to work extremely hard and do everything they can to reach an agreement.
Douglas McAllister (West Dunbartonshire) (Lab)
Although it is appreciated that a new trade deal with India could support jobs and prosperity in the UK and thus drive growth, will the Minister ensure that the talks include discussion of an agreement to the immediate release of my constituent Jagtar Singh Johal from arbitrary detention in India before any trade deal is concluded?
Gareth Thomas
I recognise that this is a significant issue for my hon. Friend. We remain committed to encouraging the Government of India to make faster progress on resolving this case. My right hon. and learned Friend the Prime Minister raised this case with Prime Minister Modi on 18 November, and we have made clear the need for faster progress towards a resolution.
Lewis Cocking (Broxbourne) (Con)
The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)
The Government continue to support entrepreneurs through, for example, start-up loans via the British Business Bank. We will publish our small business strategy later this year, which will signal a clear, overarching ambition to promote entrepreneurship, and will articulate a new vision for business support, built around the new business growth service that I have alluded to.
Lewis Cocking
Economies grow and jobs are created when individuals are able to take risks and invest in their ideas, so what have the Government done specifically since the general election to help more people in my constituency of Broxbourne become entrepreneurs?
Gareth Thomas
One thing we need to continue to do is make it easier for entrepreneurs in the hon. Member’s constituency and across the UK to access the finance that they need to set up their business. We have given an extra £250 million to the British Business Bank, which will help to ensure that more people have access to finance across the country, including in his constituency. We will publish our small business strategy later this year, in which he will see further measures to support entrepreneurs in Broxbourne and across the UK.
Melanie Onn (Great Grimsby and Cleethorpes) (Lab)
What specific support is being provided for women entrepreneurs? They are the driving force behind small businesses in my Great Grimsby and Cleethorpes constituency, and deserve all the support that they can get.
Gareth Thomas
I strongly support my hon. Friend’s substantive point. We are backing the Invest in Women taskforce, which was set up to increase the number of female-powered businesses. We are looking at how to increase significantly the proportion of investment going to all-female founding teams; it has been stuck at just 2% of equity investment in the last decade. That is one example of the things we need to change to help women-led businesses realise their full potential.
Ian Lavery (Blyth and Ashington) (Lab)
The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)
The Government are investing £1.4 billion, with the North East combined authority, to deliver our shared objectives of economic growth and business support. That includes the development of the local part of the industrial strategy, guiding investment to deliver sustainable economic growth, and delivering support to grow all businesses. In 2023-24, there was £420,000-worth of direct support given to the North East Growth Hub, which provides businesses across the area with practical advice and support to grow and thrive.
Ian Lavery
Yesterday saw full-throated Government support for projects across the UK, but not so much for the north-east. The region was decimated by 14 years of Tory Government, and that cannot be repeated. I accept what the Minister says about what has happened, but what will the Government do to ensure that businesses in my Blyth and Ashington constituency can play their part in the cutting-edge technologies of the future and, crucially, see improved investment, which will create much- needed jobs with good wages and terms and conditions?
Justin Madders
I am at one with my hon. Friend in wanting all parts of the country, especially the north-west and the north-east, to have high-paid, well-skilled, good jobs, in tech sectors in particular, but also in other areas where we can see great advantage for the economy. The local skills improvement plan for the north-east will help, and the excellent facilities at Blyth’s Energy Central Learning Hub are supported by over £6 million of Government funding. That is already developing sector skills in a real-world port setting. With the reopening of the Northumberland line, we have reconnected towns in south-east Northumberland with Tyneside, improving links and opportunities across the area.
Rachel Taylor (North Warwickshire and Bedworth) (Lab)
The Minister for Industry (Sarah Jones)
As we have already discussed, the automotive sector is absolutely vital to the Government’s plans for green economic growth, and for growing the economy more widely. That is why, at the Budget, my right hon. Friend the Chancellor committed to ensuring over £2 billion of capital and research and development funding before 2030 for zero emission vehicle manufacturing and its supply chains. We are also consulting the industry to make sure that the zero emissions transition works for the UK’s car industry, and working with the automotive transformation fund and the Advanced Propulsion Centre to make sure that we carry on innovating and seeing the growth of the automotive sector in the UK.
Rachel Taylor
Around 3,000 of my constituents in North Warwickshire and Bedworth work in the automotive sector. I have met representatives of many small and medium-sized businesses that provide engineering and manufacturing services for the sector, as well as Jaguar Land Rover, which has a battery assembly centre in my constituency. A career in the automotive industry should be an attractive prospect to many young people in my constituency. What is the Minister doing to support the sector in upskilling its workforce and providing apprenticeship schemes, so that companies are not left relying on immigration to fill skills gaps?
Sarah Jones
My hon. Friend makes a really good point. There is a lot of work under way to look at skills across the board, because thus far no Government have had a proper strategy on the skills that we need, and on how we make sure that we train our own people, so that we do not have to rely on immigration. There are examples in the automotive sector of absolutely brilliant apprenticeship schemes that other industries can learn from, and we are working with Skills England. I have regular meetings with colleagues in the Department for Education, the Home Office and the Department for Work and Pensions to make sure that we crack this nut and encourage people to go into good, well-paid jobs.
Sally Jameson (Doncaster Central) (Lab/Co-op)
The Minister for Industry (Sarah Jones)
The Secretary of State and the Minister for Trade Policy and Economic Security are at the funeral of the late, great John Prescott. In this place, we remember him.
Yesterday, the Chancellor set out this Government’s plan for growth, our vision for the country and our path to putting more money in people’s pockets, reviving our high streets and supporting thriving businesses that create wealth, jobs and new opportunities. I was in Davos last week with the Chancellor and the Business Secretary, and there was enthusiasm about investing in a country that believes in open and free trade, that is resetting its relationship with the EU, that is forging new free trade agreements and that is creating stability here in the UK economy. It is little surprise that the UK has just been ranked by PwC as the second most attractive country in the world for investment.
We recognise that growth will not come without a fight, which is why we are pressing ahead with our industrial strategy, and channelling support for eight growth-driving sectors of our economy. It is why we are developing our small business strategy and working across all Government Departments to deliver the growth we need. We are supporting the Prime Minister’s plan for change, putting more money into people’s pockets and realising a new decade of national renewal.
Sally Jameson
Yesterday, the Chancellor announced that the Government will work with Mayor Ros Jones and the Mayor of South Yorkshire to reopen Doncaster airport, so will the Minister meet Doncaster MPs to discuss how the Department can meaningfully help? Will she also acknowledge that the growth agenda will be a success only if areas like Doncaster, South Yorkshire and the north are a critical part of it?
Sarah Jones
My hon. Friend makes a good point, and I would be happy to meet a group of MPs from her area. The ambition on airport expansion was very clear in the Chancellor’s speech yesterday. We are hungry for growth; we set that need alongside the need to decarbonise our airspace. Yesterday, I chaired a meeting of industry experts looking at how we can turbocharge our decarbonisation of aviation.
I would be pleased to meet my hon. Friend the Member for Doncaster Central (Sally Jameson), and I agree that we need to grow all parts of the UK to make this work.
Madam Deputy Speaker (Ms Nusrat Ghani)
I call the shadow Secretary of State.
Andrew Griffith (Arundel and South Downs) (Con)
Next week, members of the Public and Commercial Services Union in the Department for Business and Trade are once again out on strike. Does the Minister consider the union’s demands to be reasonable? Will Ministers cross picket lines to return to work?
Sarah Jones
The shadow Secretary of State shows a new-found respect for the trade unions, after the previous Government’s failure to engage with them caused multiple strikes and huge amounts of wasted money. The contract is not directly with the Department, but obviously we work with PCS and all our trade unions. I regularly meet our trade unions to make sure that we have good workers’ rights.
Several hon. Members rose—
Alison Hume (Scarborough and Whitby) (Lab)
Sarah Jones
I met Anglo American to talk about Woodsmith just a couple of weeks ago when I was in Saudi Arabia, and it is an important site. I promised to go and see it, so perhaps I can go with my hon. Friend. It is important that the critical minerals strategy we are developing marks a step change from the previous Government’s strategy, which just looked at a moment in time and said, “We need to do a bit more of this, that and the other.” We will have targets, will be driving forward, and will look at our future demand. We are going to look at the eight sectors that we want to grow, consider what critical minerals we need, and think about how to ensure that we have the supply chains to get it right.
Mr Joshua Reynolds (Maidenhead) (LD)
Luke Murphy (Basingstoke) (Lab)
Sarah Jones
My hon. Friend is right that there is a lot of expertise and a lot of tech companies in his patch, and we want to see them thrive. It is for the Government to support that growth, to listen to what the barriers to growth are and to tackle them. Our digital development strategy, the UK’s digital strategy and our AI strategy, which the Prime Minister launched, are all vehicles to support these brilliant industries that we want to encourage. I am always happy to talk to my hon. Friend about what more we can do to encourage more of them on to his patch.
Max Wilkinson (Cheltenham) (LD)
The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)
I commend Charlotte on her business. We recognise that we need to do more to help businesses like hers to be able to export more easily to Europe. That is why the Prime Minister has set out our determination to reset the relationship with Europe. We have made clear our plans to negotiate a phytosanitary agreement with the EU, which may or may not make an immediate difference for Charlotte, but there are other aspects of our plans to reset the relationship with Europe that I hope will help.
Sarah Owen (Luton North) (Lab)
Sarah Jones
I thank my hon. Friend for her work supporting workers at Stellantis. I met several of her colleagues and representatives from Stellantis this week, who I meet regularly. We stand ready to talk to them about whatever they need to remain. The consultation finished on 24 January and we await the final decision. She makes a good point about Luton airport, which I use very often because there are very good train links from Croydon to Luton. I should say that there are also good train links from Croydon to Gatwick. We know that the Secretary of State will be making a decision in due course, but the direction of travel on growth and breaking down barriers was clear in the Chancellor’s speech yesterday.
Sir John Whittingdale (Maldon) (Con)
Justin Madders
I can give the right hon. Member that reassurance. The independence of the CMA is very important. That will remain in place and a new strategic steer will be issued shortly that will reaffirm that independence.
Johanna Baxter (Paisley and Renfrewshire South) (Lab)
Justin Madders
The experience of the pandemic really brought home that millions of people in this country do not qualify for statutory sick pay. We are determined to deal with that and I am happy to meet my hon. Friend to discuss the issue in more detail.
David Mundell (Dumfriesshire, Clydesdale and Tweeddale) (Con)
Yesterday, out of the blue, Bank of Scotland announced that it will close five branches in my constituency, leaving hundreds of square miles of the rural south of Scotland without a single bank branch. While we must work with Link and others to ensure access to cash in those communities, does the Minister share my concern not only that this will leave empty premises prominent on the high street, but that it sends a message that the banks are giving up on rural areas and on those who do not bank online?
Gareth Thomas
I recognise that the right hon. Gentleman’s constituents will be concerned about the Bank of Scotland’s decision. He may know that more than 9,500 bank branches closed between 2010 and 2023. That is why the Government are determined to ensure the much more widespread roll-out of banking hubs, with a commitment to roll out 350 banking hubs. I strongly suggest to the right hon. Gentleman that he get in contact with Link and Cash Access UK to make the case for a banking hub in his constituency. If I can help in any way, I will be happy to consider doing so.
Ian Lavery (Blyth and Ashington) (Lab)
Sarah Jones
My hon. Friend and I have previously talked about this great opportunity. The rapid development and breakthrough of new AI models such as DeepSeek tell us that we need to go further and faster to remove barriers to innovation and make Britain the most competitive market. We need to be developing the technology ourselves. That is why we have set out our new AI strategy and why we are scaling up our capacity, creating AI growth zones and putting in place every vehicle we can to support the growth of technology innovation in our country, because we will need it in future.
Josh Babarinde (Eastbourne) (LD)
Our precious high street in Eastbourne is blighted by the dilapidated Debenhams building on Terminus Road, whose owner has left it empty for years, attracting antisocial behaviour and crime. Will the Minister meet me or support me to meet his colleagues from the Ministry of Housing, Communities and Local Government and Eastbourne borough council to discuss how we can use the new high street rental auction powers to force the owner to make that unit occupied again, so that we can regenerate our high street in the sunniest town in the UK?
Gareth Thomas
I have already met the hon. Gentleman to discuss some of the issues facing the high streets in his constituency. If he thinks I am the most appropriate Minister for that discussion, I am happy to make sure that it happens. He may actually want to discuss this particular issue with colleagues in MHCLG, whose attention I will draw to the question, because they and their officials are working much more closely on the implementation of the powers he mentions.