The Secretary of State for Business and Trade (Jonathan Reynolds)
With permission, I will make a statement on how this Government are backing British business and British workers through the launch of the UK’s modern industrial strategy. At the outset, I wish to thank Dame Clare Barclay, all members of the Industrial Strategy Advisory Council and my officials for their outstanding work in preparing for the launch of the strategy today.
In an uncertain world, stability, clarity and consistency are needed more than ever. The challenges we face require nothing less than a Government who are on the pitch and clearing the way for private enterprise, and doing so in the best interests of working people. That is what this pro-business, pro-worker Government are going to deliver.
Today I launch a strategy to make Britain the best place in the world to start and grow a business, based on a fundamentally new economic approach from what we have had in the past—a break from the declinism, the dither and the disinterest that defined the last Conservative Government. The strategy speaks to the strength and breadth of our economy, be it building strong industrial foundations, powering frontier technologies, or supporting our world-leading services sector to innovate and thrive. It brings together every bit of Government to drive investment, improving the total business environment by drawing on every Department’s expertise. It is a plan to rebuild Britain through new jobs, new industries and new investments; a plan to launch thousands of new careers in engineering, life sciences, professional services and more; and a plan in which Britain’s future is designed and built in Britain.
I accept that until this Government came to power, British business was treated to a merry-go-round of policy changes that was matched only by the shuffling of successive Business Secretaries. We are now providing the stability that is at such a premium across the world. Make UK has long called for
“a funded and joined-up long-term vision as a matter of urgency for stability and investment”—
I could not have put it better myself. From the moment we took office, we said that we would pursue a new economic approach in which industrial policy would be done with business, not to business, and we are fulfilling that commitment today. I place on record my thanks to the thousands of businesses that engaged in the process and designed the strategy with us. It is not a document that will be printed and then forgotten; we will put the Industrial Strategy Advisory Council and the industrial strategy on a statutory footing to hardwire the changes for the long term.
This Government have brought stability, openness and a pro-growth agenda, but as I have told the House previously, working people must feel the benefits of economic growth. We must go further and faster if we want to achieve the kind of economic growth that the public should expect, see in their public services and feel in their pay packets. Business leaders have provided a wealth of testimony and evidence on the areas that they see as holding them back, and there are no surprises on the list. It starts with energy, because we have among the highest industrial electricity prices in the developed world at present. They went up 50% in real terms under the previous Government. Second on the list is skills, because when we have vacancies at the same time as one in eight young people are not in education, employment or training, and net immigration is at 1 million, as it was when we took office, something has gone badly wrong. Thirdly, there is place, because too much of the country has been held back by crumbling infrastructure and a lack of investment due to the north-south divide—and that ends now. We will make the bold choices to ensure every region and every nation can play to their strengths. Finally, there is access to finance, because without access to capital we will always have a ceiling on ambition. Today, we have smashed through these barriers.
Let me take each of those four in turn, starting with energy. Today, we have announced that we will slash electricity costs by between 20% and 25% through a new British industrial competitiveness scheme. This will bring our prices more closely in line with those in Europe, and it will be a game changer. We will also put in place the reforms we need for businesses to get the much faster connections to the grid that they need. That means companies in sectors such as car making and chemicals will see their electricity costs cut. The scheme could benefit over 7,000 businesses with high electricity usage in industrial strategy foundational industries and high-growth manufacturing sectors, which collectively employ over 300,000 skilled workers.
We will also launch an expanded version of the supercharger scheme, so that some of our largest companies in electricity-intensive sectors—including investments of the future such as the new steelworks’ electric arc furnace at Port Talbot and the Agratas gigafactory in Somerset—will see their network charging exemptions rise from 60% to 90%, cutting their electricity bills and again making them more competitive than our European neighbours. Although the previous Government promised that to business, they again failed to deliver. I confirm that this will all be done without adding a penny to consumer bills or those of any other business.
Secondly, we are shaking up the skills system to prioritise digital, engineering and defence skills, so British workers can secure good, secure jobs in tomorrow’s economy. Our industrial strategy sectors are already on track to create 1.1 million new good, well-paying jobs with the help of this industrial strategy, and we want those opportunities to benefit all our constituents. That is why we are investing over £275 million in our engineering skills package and the skills mission fund to deliver training and new technical excellence colleges as part of our wider skills offer. Through our global talent visa reforms and the global talent taskforce, we are also ensuring that UK businesses can recruit the best of the best from here and abroad.
Thirdly, the issue of place—the economic geography of the UK—means a great deal to me and many of my colleagues, who listened to the grand plans to level up that turned into a few extra flowerpots and empty promises. I want to be clear that this strategy is unashamedly ambitious. It chooses to back places where there are clusters of high-growth sectors, and it will work with devolved Governments, Mayors and local leaders to boost that growth.
We are making it easier to get money to places and turn investment into spades in the ground and cranes in the sky through industrial strategy zones, which will bring together our existing network of freeports and investment zones. We will also, for the first time, include a new programme identifying investible sites where we will fast-track development, similar to the approach taken in France. However, our infrastructure must match our ambition, so we will strengthen connections between city regions and clusters through the Oxford-Cambridge growth corridor, the growth corridor across our northern city regions, the Edinburgh-Glasgow central belt and rail enhancements in Wales.
Finally, we will unlock billions of pounds in business finance, with the National Wealth Fund supporting our growth sectors, an expanded role for UK Export Finance and £4 billion growth capital for start-ups and scale-ups through a larger British Business Bank, addressing at scale the key stage that we know is the most challenging. This growth capital will catalyse £12 billion of private capital across the eight growth-driving sectors and deliver around £30 billion of additional gross value added to the UK economy.
These measures, alongside our transformative sector plans, are how we can realise the untapped potential in key parts of our economy. For instance, by 2035 we aim to double business investment in advanced manufacturing, increasing the volume of vehicles produced in the UK to 1.3 million, while creating the first European market for self-driving vehicles. We are turbocharging our clean energy mission with investment in offshore wind, small modular reactors, carbon capture, green hydrogen, gigafactories, ports and green steel. We will make our United Kingdom one of the top three places in the world for creating and scaling digital and technology business. That means training 1 million young people in tech skills and expanding our Al research resource by at least twentyfold by 2030. We will significantly increase business investment in our world-leading creative industries sector to £31 billion, cementing our position as one of the great creative exporters in the world. For our life sciences sector, our ambition is that the UK will be, by 2030, the leading life sciences economy in Europe, and, by 2035, the third most important life sciences economy globally, after the US and China.
At the same time, we plan to double business investment in professional and business services to £61 billion, ensuring the continued growth in a powerhouse industry that accounts for millions of jobs in the UK, the vast majority outside London. We have already announced the largest increase in defence spending since the cold war and will use this to transform the UK into a defence industrial superpower by 2035, leading Europe in defence exports and closing the gap with the US by half in venture capital investment in defence. For our financial services, the heart of business investment and stability, we will harness opportunities as markets digitise and adopt new technologies, and ensure the whole economy feels the benefits of increased investment.
The industrial strategy also ensures that places and sectors can take full advantage of the UK’s position as a global hub for trade. The UK has long been and will remain a champion of free trade, which is why, under this Government, we have delivered trade agreements with our biggest trading partner in the world, the biggest economy in the world and the fastest growing economy in the world, making the UK the best connected market in the world. Through this industrial strategy, we are reaffirming our commitment to free and fair resilient trade, while shielding businesses from supply chain disruption and market-distorting practices. We will leverage our relationships with Europe, the US, China, the Gulf and beyond, so that businesses can make the UK their base to connect with global markets. It will work hand-in-glove with the trade strategy, which my Department will publish later this week, to help British companies break into new markets, export more and grow more.
This is a watershed moment. For too long, Governments have been a source of problems for British business, not a path to solutions. The result, in parts of the country where I and many of us here grew up, was that we watched yards and factories close, along with the door to opportunity. There was a sense that we were losing the past, but we had no bridge to the future. That also ends now, because our plan for change is backing this country’s greatest assets and frontier industries to put more money into people’s pockets, raise living standards and unleash a decade of national renewal. I welcome Make UK’s comments that
“Today is one of the most important days for British industry in a generation.”
We are creating a prosperous, proud and outward-facing but self-reliant, independent and high-skilled nation; a country where opportunity, skills and wealth are spread fairly, and where every person and every business have the chance to flourish. That is what our modern industrial strategy will deliver. Our future, in our hands, built in Britain: that is what the strategy will achieve. I commend this statement to the House.
Several hon. Members rose—
Andrew Griffith (Arundel and South Downs) (Con)
I thank the Secretary of State for advance sight of his statement.
It is always a good day when we can talk about our wonderful and innovative British businesses, but, sad to say, this strategy has taken the best part of 12 months to appear. That is how long British industry has had to wait for this cut and paste industrial strategy; 158 pages mostly copied and pasted from previous sector strategies and the science and technology framework, which do nothing to alleviate the pain and turmoil that Labour has already inflicted. In those 12 months, Labour has crashed the economy—[Laughter.] Labour Members are laughing, but unemployment has been up in every one of the nine months of this Government, with hiring and investment down. I understand that this document is printed on 40% recycled paper—very much like its content.
Yet there is no respite for businesses from the decisions that have been taken. The Secretary of State talks about restoring stability, and that may well be what was written for him, but he, like me, listens to businesses, so he cannot possibly believe that. The Government have hiked taxes by £40 billion when they promised not to, and gilt rates are higher today than after the mini-Budget; they fiddled the fiscal rules and are now running out of headroom, all while setting up state investment banks in a repeat of the previous Labour Government’s private finance initiative. Higher taxes, higher energy costs and more red tape on employment—the proposals set out in this document are simply insufficient at a time when businesses need far greater measures to defend them from the minefield that Labour has left out.
There are many elements of this strategy that we do welcome. I am pleased that the Government have continued the work the former Chancellor and I undertook on access to capital, and it is good to see an emphasis on trade and international co-operation, particularly with the document’s focus on Japan and Saudi Arabia. I am glad that the Government are implementing the O’Shaughnessy reforms and turning the NHS into a global platform health data research service.
It is encouraging to see the weight given to autonomous cars, although it is curious that there is no mention of the opportunity of driverless trains. I am disappointed that the life sciences and engineering biology receive relatively modest mentions. There is a minor mention of skills reform, but there is no mention of real deregulation to our labour market and a near absence of references to small businesses, which account for the majority of businesses and employment in this country.
The big miss, however, is on energy. We welcomed the Prime Minister’s epiphany this weekend when he announced he would slash green levies on a certain number of businesses. However, the industrial strategy still talks about accelerating to net zero at a time when British business needs the opposite. It is simply mad. Rather than the Business and Trade Secretary—sitting next to the Energy Secretary on the Front Bench—addressing the root causes of high energy costs, this Government seem intent on adding to the web of complexity of taxes, levies and subsidies. There is nothing in the strategy about reopening the North sea—the energy reserves that lie under our own secure feet. It even compounds the problem by imposing further self-harm through a carbon border adjustment mechanism—a tariff by another name—which will cost businesses and consumers in this country dear.
How can anyone outside this postcode running a business believe that Labour intends to cut the regulatory burden when it has set up new quangos at the rate of one every two weeks, including in the Business Secretary’s own Department? How can anyone outside Whitehall looking at the regulations take seriously the commitments in this document, when the Secretary of State’s own Department is guiding through the House 300 pages of trade union-written employment law, which will force employers to cut hiring and jobs?
I will conclude with a number of questions. If the Secretary of State cannot answer today, perhaps he would be so kind as to write with a reply. The small business strategy was promised for the spring, but the summer solstice is now behind us. Can he tell the millions of businesses when it is coming?
There are a number of live situations that the Secretary of State will be aware of, including the bioethanol plan in Saltend Chemicals Park in Hull, Syngenta moving its precision wheat breeding programme to France, and the Government equivocating over supporting the stake in the vital low Earth orbit satellite operator OneWeb. Does the Secretary of State agree that it is actions, not words, that count, and will he impress that on his Treasury colleagues?
Finally, the strategy does talk about reducing the number of regulators, which is wholly welcome, as we need a marked cull in the number of regulators and their scope and size. Will the Secretary of State commit to publishing an annual statement showing the progress his Government are making on that, and will he start today by agreeing not to create any new ones?
Jonathan Reynolds
So fuelled by optimism am I today that even the shadow Secretary of State cannot bring me down. Having been in opposition for some time, I can say that, “This document is all rubbish and I welcome most of it,” is quite an exciting take on a response. The Conservative party has managed to oppose almost everything that the Government have done in their first year, including, in my Department, the Product Regulation and Metrology Bill, which the previous Government were planning to introduce had they remained in office, and the India trade deal, which they were negotiating but could not get across the line, so I welcome the small bits of positivity in his response.
Everyone across the House should support the strategy. It is based on things that will not be secrets to hon. Members who spend time with businesses on constituency Fridays and at weekends. They will be told about skills, energy, access to finance and how local areas should have the powers to address the needs in their local economies. I hope that the shadow Secretary of State would recognise, in good spirit, that many of the problems that need to be addressed grew under the Conservative Government. For example, the fact that energy bills became so uncompetitive was a result of actions and decisions of the Conservative Government. We are fixing that problem, in order to make a difference.
On skills, one in eight young people are not in education, employment or training, while net immigration is at 1 million. That is not a policy success. It needed to be addressed. We needed to address, too, the failures on the funding of courses such as engineering. That was such an obvious need for our sectors. Finance is one of the longest-running problems; we are all familiar with it.
The shadow Secretary of State asked a number of questions, and I am more than happy to answer them. On small businesses, if he reads more of the detail when he has a bit more time, he will see that small and medium-sized enterprises play a vital role in the creative industries and defence sector plans. To anyone who asks, “What’s the message to businesses that are not in sectors covered by the industrial strategy?” I say that they will benefit from people having good jobs and high incomes. Whether they are in hospitality, retail or leisure, they will see a direct benefit from the strategy. The small business plan will come out in July, and it will deal with issues such as late payment, business support and access to the kinds of tools—rental auctions and so forth—that will make a difference on the high street.
The shadow Secretary of State attacked net zero. That is a mistake. Why would we turn our back on billions of pounds of investment and all the benefits it could bring? In particular, becoming a country that is not so reliant on volatile foreign gas prices is an obvious thing that we would not want to turn our back on. He seemed to announce a new Conservative position of opposing CBAMs, which deal with carbon leakage and create a level playing field. I am surprised by that, because the previous Conservative Government were strong advocates of them.
On the bioethanol industry, talks continue with the two plants most directly affected. Of course, they were in a challenging position before the US trade deal; the deal was not in itself the cause of that. They were losing money. If I intervene, I must have a route to profitability, and that is the basis of those conversations. We are committed to precision breeding. Businesses that moved to France would find a more restrictive environment there because of EU regulation, so I would not recommend that.
On OneWeb, there are some specific issues, about which I would be more than happy to talk to the shadow Secretary of State. On regulation, we have already taken decisive action, for example with a strategic steer to the Competition and Markets Authority, which has been warmly welcomed by businesspeople. They ask me for more of that, and that is exactly what we intend to bring forward.
Finally, let me say, because I know that this is so important to colleagues, that I am more than happy to offer a briefing to any Front-Bench spokesperson or group of colleagues across the House. There is so much in the strategy that will make a difference and so much detail worth sharing, and I would be more than happy to do so with colleagues. Let us all get behind the strategy and get behind British industry.
Madam Deputy Speaker (Ms Nusrat Ghani)
I call the Chair of the Business and Trade Committee.
Liam Byrne (Birmingham Hodge Hill and Solihull North) (Lab)
I congratulate my right hon. Friend on the biggest remaking of the relationship between the public and private sectors for a generation. The business community in this country will be stronger and better for the measures that he has announced today. Business will welcome in particular the huge investment in skills, access to research and development, and access to capital, but the game changer is the investment in energy that he has announced. Cutting industrial energy prices is a way to get rid of the albatross around the neck of British business. It is a big promise; can he assure the House that there is both the plan and the pound notes to deliver on it?
Jonathan Reynolds
I warmly welcome those words from the Chair of the Select Committee. I absolutely agree with him. There is so much in the strategy, but we were so uncompetitive on energy that whether action could be taken had become a test of credibility from business. The kinds of changes we are talking about—a reduction of £35 to £40 per megawatt-hour by exempting eligible businesses from payments for the renewables obligation, feed-in tariffs and the capacity market—will make a real difference. We are talking about going from being the absolute outlier to, today, being cheaper than Italy and the Czech Republic and on a par with Germany. That is a game changer, and it has been welcomed. We will obviously have to consult; we can make the changes to the supercharger more quickly than we can introduce that support. Of course, we will have to set a threshold intensity test and make sure it goes to the sectors in most need of it, but we expect those to include the core foundational sectors as well as aerospace, automotive and all the areas where the competitive pressure is most acute. I am incredibly excited by that.
Madam Deputy Speaker (Ms Nusrat Ghani)
I call the Liberal Democrat spokesperson.
Sarah Olney (Richmond Park) (LD)
The Liberal Democrats have long been champions of the industrial strategy. We are proud that the strategy we introduced in government set out the Green Investment Bank, the British Business Bank and the regional growth fund, and we strongly opposed the Conservative Government’s damaging decision to scrap our country’s industrial plan. We therefore welcome the re-establishment of the industrial strategy and the fact that it focuses on many of the sectors we prioritised in government, including life sciences, professional services and clean energy.
On energy, measures to bring down some of the highest industrial prices in the world will be welcome news for our manufacturers and energy-intensive firms, but we cannot forget that businesses across our entire economy struggle with high energy prices, not least our hospitality businesses and small and medium-sized enterprises. What steps is the Secretary of State taking to ensure that small businesses across sectors have access to better energy deals? Will he look to bring forward the industrial competitiveness scheme from its current two-year horizon?
On skills, while today’s announcement comes with a welcome funding boost, it stops well short of the fundamental reform that we need, so will the Secretary of State accelerate the reform of apprenticeships and empower Skills England to act as a properly independent body with employers at its heart? One key omission from the strategy is our world-leading agrifood industry, which has been relegated from being a priority sector to receiving only a handful of mentions in the entire document. I hope that the Secretary of State will admit that our farmers and rural communities deserve far better. On trade, if the Government are truly serious about backing British business and going for growth, will they show more ambition on trade with Europe and look to negotiate a new UK-EU customs union, which could put rocket boosters under UK plc?
In the extra time that you have kindly granted me, Madam Deputy Speaker, I want to ask the Secretary of State about access to finance and about addressing inequalities in particular. As chairman of the all-party parliamentary group on ethnic minority business owners, I have seen for myself the data on how much more difficult it is for those businesses to access finance, and similar data exists for women entrepreneurs. Addressing those inequalities would add a great deal to growth. Finally, when will we see more details about the National Wealth Fund?
Jonathan Reynolds
I warmly welcome the hon. Lady’s support. That section of the Liberal Democrat manifesto was very well written, whoever was responsible for it. There was much that we can all get behind, and it very much made the case.
The hon. Lady is right to say that the Liberal Democrats in government supported the approach we are taking. By the way, I have talked to nearly every one of my living predecessors across the political divide—not all of them, but the ones who have done this kind of work and made a difference. There are some new things in the sectors that we have picked. The creative industries are a brilliant economic, soft power and cultural strength of this country, so it is great to see them included.
On the timescale for energy policy changes, I know that the people who recognise the burden want to see action quickly. I want to see action as quickly as possible. I can make changes to the supercharger scheme and the generosity of it more quickly because it is an existing scheme and the intensity threshold is already in place, but the industrial competitiveness scheme will require legislation to implement it, and that will take more time, depending on how co-operative colleagues are across the House.
I welcome what the hon. Lady said on skills. Skills will always be the No. 1 issue that any business raises with its Member of Parliament. I recognise the case she makes about a fundamental reform. Since the apprenticeship levy was introduced, employer investment in skills has gone down, and that is not what any of us want to see. We will ask Skills England and the industrial strategy council to work more closely on what businesses need to invest in more, and we will ask them to report by the Budget to see whether we can take forward a more comprehensive set of changes. The Department for Education owns that part of the policy, of course, but this is a cross-Government industrial strategy, as it should be. On agrifood, it is a subsector of advanced manufacturing, so the hon. Lady should not worry, because it is included.
The only item of disagreement is trade. I would say that this Government are managing the pressures of international trade better than any other country in the world. The customs union that the hon. Lady proposes would mean that we could not have the trade deal with India, which has brought down tariffs on salmon, Scotch whisky and automotive vehicles. It would mean that we could not have the agreement with the US, which has saved tens of thousands of jobs, so I cannot agree with her on that point. I think we should have closer trade with Europe, the US and the rest of the world.
Finally, I thoroughly agree with the hon. Lady on access to finance, and I appreciate that point. This is a core business and economic issue for the UK, not a minor issue. The level of finance that is going to female entrepreneurs, for instance, is not sufficient. We have already explicitly backed some significant campaigns through the British Business Bank and I stand ready to do more. I recognise the important case she makes.
David Williams (Stoke-on-Trent North) (Lab)
I welcome this incredibly positive industrial strategy that will help us to harness Britain’s potential. The strategy rightly recognises that Stoke-on-Trent has been at the heart of the ceramics industry for centuries. Therefore, will the Secretary of State outline what the industrial strategy means for both our traditional ceramics companies, which produce the finest tableware, and for advanced ceramics with a view to the future?
Jonathan Reynolds
I very much welcome my hon. Friend’s comments in welcoming the strategy. There is a great deal that I could go through. I would get in trouble with you, Madam Deputy Speaker, if I mentioned the benefits for every sector in the document, but I think we would all recognise the pressure on the ceramics sector through energy prices—much of the industry is gas-intensive, and there are not policy tools for dealing with that in the same way. Only a small number of ceramics businesses currently benefit from the supercharger—I think only eight in total—which is why the test for the British industrial competitiveness programme is a different one. There will be a proper process to assess thresholds and eligibility, but it is designed in such a way that foundation sectors—ceramics is very much included in the material side of that—would get the benefit of the programme.
Martin Vickers (Brigg and Immingham) (Con)
Belated though it is, the announcement about energy costs is obviously vital to the steel sector. The Secretary of State is well aware of the situation in Scunthorpe. Will he give an assurance that, for the foreseeable future, production of virgin steel will continue in Scunthorpe? Will he work with North Lincolnshire council, which has plans for redeveloping the redundant parts of the site, particularly in respect of an AI growth zone?
Jonathan Reynolds
I thank the hon. Member very much for his work. I think the whole House knows of my personal interest in steel and the measures we have taken, including the recall of Parliament and the passing of the Steel Industry (Special Measures) Act 2025 that was required to save his constituents’ jobs. He is right that the investment required in some of the most electricity-intensive opportunities of the future—electric arc furnaces, for instance, were we to go down that route at Scunthorpe —requires the kind of programme that the enhanced supercharger level will get to because of the measures outlined in the strategy.
There is not yet a plan for transition at Scunthorpe. As the hon. Member knows, we have taken control, but we need to resolve the issue of ownership. We continue to run the plant in a way that minimises losses to the taxpayer. That has meant putting more money in up front to run it at full capacity, which I think he will very much support. We will continue to work with anyone in the local area, including him and my hon. Friend the Member for Scunthorpe (Sir Nicholas Dakin), to ensure that there is a bright future for the steel sector. I believe that will be possible based on the policy environment we are putting in place.
Dame Chi Onwurah (Newcastle upon Tyne Central and West) (Lab)
As Chair of the Science, Innovation and Technology Committee,, I really welcome this modern industrial strategy because it delivers on the promise Labour made in opposition to put science, innovation and technology and the skills they require at the heart of the drive for growth and industrialisation. I also welcome the strategy as a north-east MP because of the emphasis on regional growth and regional strengths.
My Committee found that one of the major barriers to regional growth and innovation was access to capital. The industrial strategy commits to doubling business investment by 2035. Will the Secretary of State say a little about how the north-east—just for example—might benefit from that?
Jonathan Reynolds
First, let me congratulate my hon. Friend on her recent honour. [Hon. Members: “Hear, hear!”] I know that she is not one for a fuss, but it is inspiring, and it is great to see that recognition.
My hon. Friend is right that access to finance is a pillar of the industrial strategy. For instance, in the spending review, the British Business Bank’s capacity was increased to up to £4 billion, and the maximum ticket it could write was increased to £60 million as part of that. We also had a huge increase in the capacity of UK Export Finance in the spending review—as my hon. Friend knows, the north-east is a huge exporting region and has the most positive balance of payments of any English region—and its direct lending capacity has increased as well.
We now have a story on finance from UKRI and Innovate UK for innovative start-ups, to the British Business Bank for scale up and maturity, going to the National Wealth Fund, and UK Export Finance supporting every part of that journey. That comprehensive offer is detailed in this strategy document, and it will benefit all parts of the UK, including of course the north-east of England.
Rebecca Smith (South West Devon) (Con)
I welcome the announcement of Plymouth’s defence cluster and the national centre for marine autonomy. I am proud that much of this work is being done in my constituency at Turnchapel Wharf and soon at Langage in the Plymouth and South Devon freeport, and that it includes Smart Sound, all of which were supported by the last Conservative Government. Indeed, this did not really need a special name as it was already happening. The Chancellor’s spending review speech initially included mention of £4 billion for autonomous systems split between three locations including Plymouth yet, when checked against delivery, this element was missing. Please can the Minister clarify what funding is available for these autonomous systems’ development in the strategy, in addition to the money announced for the submarine and continuous at sea deterrence programme at His Majesty’s naval base Devonport?
Jonathan Reynolds
Well, I think that was a positive response to the industrial strategy. It certainly sounded like there were some positive themes there. The hon. Member asks a reasonable, specific question about her constituency, and I will check that with officials and write to her so that she has the correct information. If she has had a chance to look at it, she will see that the strategy includes big commitments to the advanced manufacturing R&D budget for a whole range of sectors. We are putting in the money that perhaps was not as firm as it is now in the national finances, but we also have long-term plans in many of those sectors around quantum, advanced manufacturing and aerospace 10-year settlements, for example, to give the kind of assurance and consistency we really need, but I will get her the specific answer she needs.
Antonia Bance (Tipton and Wednesbury) (Lab)
Representing Tipton, the birthplace of the first industrial revolution, I hugely welcome this industrial strategy and its 1.1 million good jobs. I am particularly pleased to see the Black Country singled out as a centre of clean-energy industries. We recently welcomed £45 million of investment in Eku Energy’s new battery energy storage system at Ocker Hill in my constituency. The action on high energy prices is especially welcome, and I wonder if my right hon. Friend could give us more details about how soon we can expect it to make a difference to businesses in our constituencies.
Jonathan Reynolds
The birthplace of the industrial revolution is somewhat contested by several of us Labour MPs, but we do not need a vote on that. My hon. Friend’s constituency certainly has a rich history and a great future for her constituents, who have been well represented by her since the election. On energy prices, we all want action sooner rather than later. There are some parts of the programme that I can implement more quickly than others, and I have to do this in the proper way and let people consult on the threshold. In my Department, we are often dealing with big inward investment decisions or existing domestic business investment decisions, and if they can have certainty as to where they will get to in a short space of time—many of these are investments that pay back over not just years but decades—that will make the difference. I believe that the benefits can be felt even sooner than the programme can be put in place, but I promise I will stretch every sinew to get it in place as soon as we can.
Mr Joshua Reynolds (Maidenhead) (LD)
Businesses have told me how important it is to have a front door for public finance. The strategy references Innovate UK, the British Business Bank, the National Wealth Fund, UK Export Finance, Invest Northern Ireland, the Scottish National Investment Bank, the Development Bank of Wales, Great British Energy and the Office for Investment, so does the Secretary State believe that businesses know where public finance’s front door is, and that this is as simple as it could possibly be?
Jonathan Reynolds
I welcome the question from my honourable namesake. I hope he is not still getting my emails; I get a few of his, and I try and help out where I can on those local issues. He is right: we have inherited a lot, and there is a devolved landscape to this as well. People often ask—we had a conversation in the Select Committee about this—why we do not bring them all into one organisation. It is important to understand that they play key different roles. I cannot remember what page of the industrial strategy it is on, but the different parts of the journey those different organisations represent are specifically addressed. They are there to do different things.
Of huge interest to me is the scale-up point—the serious business-to-consumer point. I think people recognise that there is a lot of capital in the world, but the question is whether it matches the risk profile and opportunities of businesses in the UK. We all recognise the tremendous innovation in this country, but do we always get the long-term benefits of that scale-up happening in the UK rather than going abroad? We do not, and that is what we are seeking to fix. That is the fundamental mission that we are all united behind.
Mr Luke Charters (York Outer) (Lab)
My hon. Friend the Member for Aldershot (Alex Baker) and I have published a report highlighting the persistent scale-up gap for defence SMEs. I welcome the increase in funds for nationally significant infrastructure projects, but red tape is holding back investment in British single-use military technology, so will my right hon. Friend look at clearing up some of that red tape in order to supercharge investment in British defence SMEs?
Jonathan Reynolds
I very much welcome the question and the work that my hon. Friend has done. He has been an ally in ensuring that there are no problems around the defence sector being seen as a legitimate source of business investment and economic activity. We recognise why we need that in the national interest, but we should not in any way be squeamish about the contribution that defence makes because the deterrence value is a fundamental contribution to peace, as well as to economic security.
I can tell my hon. Friend that the strategy commits us to double the amount of the defence budget that goes specifically to SMEs, rising to £2.5 billion a year. SMEs, in diversifying the defence supply chain and creating those opportunities, are absolutely a part of this strategy, and if he has any red tape to show me that we need to get rid of, let’s work together to get rid of it.
Kit Malthouse (North West Hampshire) (Con)
I draw attention to my entry in the Register of Members’ Financial Interests. This is the sixth industrial strategy announced from that Dispatch Box since “New Industry, New Jobs” by Gordon Brown in 2009. While they have all been filled with a box of chocolates selected by the Secretary of State, with his or her preference often underpinned by a huge subsidy, not a single one of them has made any significant difference to the UK’s growth rate, and that is because they all miss a particular piece of the jigsaw. I urge the Secretary of State to recognise that the Government can build as many roads and bridges as they want, train as many young people as they like, pump as much money into the British Business Bank as they want, but unless they can find individuals to take a risk with their own capital, they will not get any investment. Unless these individuals can see a return on that capital, they will not invest. I urge him, as we move towards a Budget in November, to work with the Chancellor of the Exchequer to increase entrepreneurs’ relief, cut capital gains tax, and reduce the taxation on dividends so investors can see a return on their risk.
Jonathan Reynolds
I hesitate to say this, but I think the right hon. Gentleman underestimates the number of strategies there have been in recent years. It is certainly more than six; we are at 11 in the past decade, or something like that. There have been six Business Secretaries in five years, which is certainly far too many. I think we can all agree that we need some long-term consistency in that area alone.
I agree with the right hon. Gentleman’s point on risk. That is one of the more thoughtful contributions I have heard on the low economic growth, mainly under a Conservative Government, since the financial crisis. We have to consider that attitude to risk in terms of regulation. Maybe our role as parliamentarians, when we ask regulators to fix every problem and stop every bad thing happening, is to ask ourselves whether that is the right balance, whether that is a reasonable request, or should it be—of course, with that in mind—proportionate to the performance of the economy.
The right hon. Gentleman mentions some specific measures. We have the lowest corporation tax in the G7 and a competitive tax rate overall, but we are always seeking to improve that. We need supply side tools, fiscal changes and a consistent long-term environment. That is what we seek to put in place.
Rachel Taylor (North Warwickshire and Bedworth) (Lab)
This morning, I visited Horiba Mira, which employs thousands of people across the west midlands. It was a privilege to visit with the Prime Minister, the Secretary of State and the Chancellor. I am sure that the Secretary of State will agree that one of the highlights of that visit was the excitement on the apprentices’ faces. After 14 years of low investment in the west midlands under the Conservatives, does he agree that this industrial strategy will deliver opportunities for young people and the manufacturing industries in North Warwickshire and Bedworth?
Jonathan Reynolds
It was a pleasure to see my hon. Friend this morning with my right hon. Friends the Prime Minister and the Chancellor. I was absolutely blown away by that facility, not just by the obvious “big name” investment from the companies there, but by the young people in particular. Of course, we are trying to deliver a strategy for business, and that requires businesses to have access to the pipeline of people, talent and skills that they need. Within that story, there are so many opportunities and careers for young people. I find that absolutely inspiring. Having an offer for the kind of apprentices and advanced manufacturing we saw today, alongside pride in our service and creative sectors and what we are doing on defence, is all key to ensuring that there are not just the things we need as an economy, but equities and opportunities for young people, as there should be in every part of the UK, to get the lives that they deserve.
Graham Leadbitter (Moray West, Nairn and Strathspey) (SNP)
While the UK Government announced a strategy that, as usual, barely gives Scotland any news, the Scottish Government under the SNP have just secured Scotland’s position as the highest ranking destination for foreign investment outside of London and the south-east for the 10th year in a row. While the UK Government refuse to see Scotland’s potential, the rest of the world are lining up to invest in us—think of what we will achieve when we are independent. Does the Minister accept that the only obstacle to Scotland’s success is the continuing devastation of a Brexit that we did not vote for and a UK Government that stubbornly refuse to see Scotland’s potential?
Jonathan Reynolds
Well, you can’t please everyone, can you? I am depressed just from listening to that question.
On the substance of the hon. Member’s question, he is categorically wrong. Look at what we are proposing for clean energy and what that means for Scotland. Look at the new supercomputer in Edinburgh and what that means for tech and digital. Look at the creative industries and the brilliant opportunities there. Look at the ambition on net zero and all the opportunities for investment in Scotland while cutting industrial energy bills.
Of course, there are parts of the strategy that respect the devolution settlement, as we would expect. Skills is something we can only address in England. The money has gone to the Scottish Government for whatever they want to do to take that forward. That is just the nature of a national industrial strategy that respects the devolved settlement. Independence would be ruinous for the economy. It would shed Scotland’s renewable energy potential from the customer base in England. I believe that at the time of the independence referendum, the SNP wanted a UK energy market anyway. If the hon. Member was being honest and candid, he would recognise that there are things that come from the massive strengths of the Union, come what may. This is a strategy that speaks to building on those opportunities for every bit of the United Kingdom, especially Scotland. Scotland’s economy could be described by the eight high-potential industrial strategy sectors in this document, so let’s have a bit of optimism and hope for Scotland.
Johanna Baxter (Paisley and Renfrewshire South) (Lab)
I welcome my right hon. Friend’s statement and the doubling of business investment by 2035. I particularly welcome the £4.3 billion of funding for the advanced manufacturing sector, which will directly benefit the AMIDS—advanced manufacturing innovation district Scotland—factory in Renfrewshire, which is in Scotland. Can the Minister say more about how he will work hand in hand with the devolved Administration in Holyrood to ensure that the delivery of the strategy is tailored to local strengths?
Jonathan Reynolds
There is the true voice of Scotland—it is fantastic to hear that optimism and pride for the future.
My hon. Friend is right that there are huge advantages for her constituents in this strategy, which commits the kind of quantum of funding on a long-term, committed basis on R&D, which cuts industrial energy prices and does things across the board. There is so much that is part of the strategy. If I were to break down each of those sectors, I could be here for hours. You would probably get upset with me, Madam Deputy Speaker, if I read out each of the measures that are part of the strategy.
As I said in answer to the previous question, when we are doing a national industrial strategy, we—entirely rightly—have to respect the devolution settlement, and there are some supply-side areas of industrial strategy that I as the UK Secretary of State do not have control over. It is right to reflect that, to build on that where we can and to work in partnership where we can. There are things I would like of the Scottish Government. If we think of Scotland’s tremendous pedigree in civil nuclear power, all that investment is denied to Scotland because of the policies of the Scottish Government. I have my frustrations, but I will work together where we are able to do so to produce the best outcome for Scotland.
Madam Deputy Speaker (Ms Nusrat Ghani)
I call Select Committee Member Charlie Maynard.
Charlie Maynard (Witney) (LD)
The Secretary of State said,
“The UK has long been and will remain a champion of free trade”
—if only! It is not on the big stuff or the important stuff. Leaving the EU’s customs union and single market has reduced UK GDP by between 2% and 4%. The deal with India is good news, but according to the UK Government’s own estimate, it adds 0.1% in the long term—that is, 20 to 40 times smaller. UK exports are down 13% since the trading co-operation agreement took effect. That impacts people in my constituency and all hon. Members’ constituencies. When will the Government move faster to repair the enormous economic damage of a hard Brexit?
Jonathan Reynolds
I understand the point that the hon. Gentleman makes. This was the question that faced the nation at the time of the referendum. If a country leaves a single market and customs union, there will of course be economic consequences, particularly when there is the free movement of people, but that is the decision the country took. Let’s look to the future, not the past. We could have this argument forever. We would have a situation where the business uncertainty created by never fundamentally coming to a settlement on Brexit would in itself become as big a problem as the impact of leaving the single market that he talks about.
Of course, if we were in a customs union without being part of the EU, could a G7 economy subcontract that area of policy entirely to other countries and not have control of a key aspect of our economy? Honestly, I do not think that is reasonable. I appreciate the Liberal position is almost certainly to go back into the European Union—there is consistency there—but I say again that doing so would mean, for instance, denying us the benefits of the India trade deal and services access to India, the reduction of tariffs on agriculture, whisky and cars, and the benefits of the US agreement, which has saved tens of thousands of jobs.
Rachel Hopkins (Luton South and South Bedfordshire) (Lab)
I welcome the ambition behind the Government’s industrial strategy, a bold 10-year plan to unlock Britain’s potential. Will the Minister outline how the strategy will align skills provision, particularly vocational and technical training, with the needs of our high-growth sectors such as advanced manufacturing and clean energy?
Jonathan Reynolds
I am getting the impression that you would like more brevity from the Front Bench, Madam Deputy Speaker, so I will just say that the skills packages will put more funding into courses, and the flexibilities required on those courses that matter, with more capital funding for technical excellence colleges, while ensuring that that is available to every part of the UK.
David Reed (Exmouth and Exeter East) (Con)
I was glad to hear defence running through the Business Secretary’s statement. Will he tell us how much equity the authors of the strategic defence review had in the compilation of the UK modern industrial strategy?
Jonathan Reynolds
I very much welcome that question. The Ministry of Defence has been a partner in the defence industrial strategy, which mirrors and is closely aligned with, as one would expect, the strategic defence review and the big increase in spending under this Government.
Sonia Kumar (Dudley) (Lab)
I warmly welcome the statement. Will the Secretary of State outline what measures are being taken to ensure that towns like Dudley—which is actually the birthplace of the industrial revolution—receive their fair share of economic regeneration and job creation, and that the current infrastructure in cities is further invested in to generate growth?
Jonathan Reynolds
I very much appreciate my hon. Friend’s question. She will see a whole range of tools in the place section that are available to both mayoral and non-mayoral areas, which will help to shape local economic plans. She will also see measures to attract inward investment and to strengthen its voice in all the regions, and a whole range of policies that speak directly to business. We are building on the tremendous history and expertise in her area; it will be good news across the board.
Mr Gregory Campbell (East Londonderry) (DUP)
The Secretary of State will be aware of the future towns funds, one of which is in Coleraine in my constituency. I want to see many more apprenticeships created through that fund. Will the modern industrial strategy that he has unveiled today be flexible enough to allow funds like that to utilise it to get additional resources, to make them even more successful than they have been so far?
Jonathan Reynolds
There are parts of the skills package that allow for short courses, more flexibility and more foundational apprenticeships, which I think speaks exactly to the challenge the hon. Gentleman puts. If he writes to me on any specific issues relating to the towns fund in his constituency, I will get those answers.
Anneliese Dodds (Oxford East) (Lab/Co-op)
I welcome my right hon. Friend’s determination to reduce energy costs. He has heard about the need for that from me, from many other colleagues and from industry, and he has acted. The previous Government did not act; he has gripped on to this. I welcome that, because it will level the playing field for UK automotive, including for BMW Cowley. Of course, we also need action to incentivise domestic electric vehicle production, rather than the purchase of foreign-made electric vehicles. Will that be included in the ZEV—zero emission vehicle—mandate refresh that is referred to in the strategy?
Jonathan Reynolds
I thoroughly welcome my right hon. Friend’s question and thank her for all her support for our determination to make sure we have the competitive automotive sector that we all want. She is right that the changes to the ZEV mandate are part of this. They were brought forward because of the pressing urgency—I was not happy with the situation that I inherited from the Conservative party. We closely review the level of consumer demand in the sector and are always willing to work with her and the tremendous businesses in her constituency to make sure we are getting this country’s markets to where they need to be.
Alison Bennett (Mid Sussex) (LD)
Consort Frozen Foods, which is based partly in Burgess Hill in my constituency, distribute ice creams across the UK. It does some distribution overseas as well, but I met its representatives recently because they really wanted to understand how best to access more markets. What advice does the Secretary of State have for Consort Frozen Foods?
Given the comments of the hon. Member for Arundel and South Downs (Andrew Griffith), I also wonder whether the Secretary of State would like to reflect on the fact that the hon. Member’s first role after being elected was as Boris Johnson’s net zero business champion.
Jonathan Reynolds
Well, I think there is no comment I can make on that.
I would say, first, that I imagine that that business has been doing very well in the last few days—anyone selling ice creams has probably seen a pretty solid demand for their products. The hon. Member makes a really good point, though; there is a lot of support for exporting, and businesses do not always know where to find it. The business growth service, which will be part of the small business plan, is an attempt by Government to bring together a single portal of information—to digitise, with a single digital login ideally, all the interactions that businesses have with the UK state. I want to bring together our considerable export offer, along with the export academy and the expertise that we have in markets, to make things very clear, so that a Member of Parliament like her visiting a business can simply say, “This is where you need to go. This is all the resource available, and I can raise any other issues with the Secretary of State.”
Ruth Jones (Newport West and Islwyn) (Lab)
As chair of the all-party parliamentary group for semiconductors, I welcome the formal recognition of this valuable sector in the new industrial strategy. I also welcome the plans for the future development of the sector, but as always the devil will be in the detail. I look forward to working with the Secretary of State to ensure that the UK semiconductor sector develops to its maximum potential in the next few years, as the essential foundation of so many of our vital industries, like automotive, aviation and cyber-security. Will he commit to regular, ongoing discussions with the leaders of the semiconductor sector?
Jonathan Reynolds
I thank my hon. Friend for her question and for her championing of that sector, which is significant for her constituency. Part of the approach in the industrial strategy is to recognise eight sectors that are very important—those that have an analytical base—and focusing some attention on them, but it covers those foundational sectors as well. As she has said, other sectors would include steel, chemicals, critical minerals, composite materials, electricity networks, ports and construction. We need the foundations in place if we are to have the kind of success that we are looking at, and I look forward to continuing to work with her on that.
Richard Tice (Boston and Skegness) (Reform)
This 138-page industrial strategy highlights the key problem facing British industry: high energy prices. The Secretary of State is putting in place some measures to reduce them, but surely he could do that earlier than 2027 by removing some of the green levies of net stupid zero sooner. When will energy prices come down for all of British industry?
Jonathan Reynolds
I almost thought the hon. Gentleman welcomed part of the strategy there. That took me a little by surprise. Yes, we are going to take decisive actions to reduce the cost of industrial energy prices. As I said earlier, there are some things I can do quicker than others—the supercharger scheme can be made more generous in the short term—but others require a longer process. I will work as hard as I can to deliver that, but I hope he recognises that the core reason why we are such an outlier is our exposure to fossil fuel prices, including gas, for both heating and electricity prices. To be frank, instead of us going down a route where we will be exposed to that in the long term, without the kind of ambition we need to make sure we have secure, clean supplies of energy in the UK, I think the hon. Gentleman should listen to businesses a bit more. They would tell him everything he needs to address this problem.
Louise Jones (North East Derbyshire) (Lab)
Businesses in my constituency are heavily reliant on great connections and making sure that our young people can access the skills they need, so I really welcome this industrial strategy, which recognises the many different aspects that go into supporting our local economy. Can the Secretary of State expand further on what we can do to support better transport connections and a better skills pipeline for the young people in my constituency?
Jonathan Reynolds
I welcome my hon. Friend’s question, which speaks directly to the challenges we are facing. As well as the action on energy bills, we will make sure there is a priority service for businesses to get the grid connections they need—one of the biggest barriers to investment—along with investment in skills. Something that I am particularly excited about is that we are going to spend £41 million to make sure that there is decent wi-fi on every mainline train service by using the latest satellite technology. If I was coming to Parliament just to announce that, I would be quite happy, if I am being honest.
Madam Deputy Speaker (Ms Nusrat Ghani)
Hopefully the rail line that takes me into my constituency will be the first on the list.
Mike Martin (Tunbridge Wells) (LD)
There is much to like in the statement. I particularly like the reduction in energy costs of between 20% and 25%, but I would like to push the Secretary of State a little on that; so that industry can plan, when does he think those 25% reductions are going to happen?
Jonathan Reynolds
Madam Deputy Speaker, my hon. Friend the Minister for Data Protection and Telecoms has just told me that it is £141 million, not £41 million, to put wi-fi on the trains. It has been quite an exciting day, but it is important that I put that on the record.
Energy prices are one of the fundamental parts of the strategy. As I say, the supercharger can be put in place by the financial year 2026-27; the British industrial competitiveness scheme will have to follow a longer process, including a legislative process, so that would happen in the financial year after that. I know how important this is, but once those plans are in place, businesses will have the certainty that that is the cost that they will face, and they can make their business plans and any investment decisions based on that.
Rosie Wrighting (Kettering) (Lab)
I welcome the Government’s ambition to double business investment by 2035, but on the Business and Trade Committee we have heard time and again from businesses that they face barriers in unlocking the investment they need to scale up. Can the Minister set out how the Government intend to support access to scale-up finance so that our economy benefits from our innovation?
Jonathan Reynolds
I thank my hon. Friend for her work on the Business and Trade Committee; I always enjoy my sessions there, as do my ministerial team. She is right that finance is a huge issue and scale-up finance is a particular challenge. We intend to use the British Business Bank, as I have said, with much greater financial capacity to work directly with fund managers focused on the scale-up part of the finance journey. I know how big a problem this is. There is a lot of capital in the world and we have got to address this particular stage, and these are real measures that seek to do that.
Victoria Collins (Harpenden and Berkhamsted) (LD)
I welcome that we finally have an industrial strategy for this country; that is very exciting. On driving innovation, I absolutely support that larger British Business Bank and making sure we invest in scale-ups, although we need to make sure that it is about long-term investment and that there are incentives to de-risk investment. I really want to focus, though, on digital and technology businesses. As much as I welcome training 1 million young people, it is not just about young people. I have businesses like BT, Sage and Xero saying they work with small businesses that need to improve their AI and tech adoption, so what are the Government doing to support them and people of all ages?
Jonathan Reynolds
I thoroughly agree. It is an exciting day and the challenge is long-term consistency and reliability—which, frankly, this Parliament and previous Governments have not supplied. There is a key voice from business to us that we need to address. Digital and tech skills are one of the prominent features of the skills interventions in the industrial strategy in order to do what the hon. Lady says. It is a significant funding package and a significant partnership with businesses, who are telling us they want to work with Government and with young people and that they want to reskill people. I think there is more we can do, but this is the start. I am keen to work with the hon. Lady and any colleague who sees the urgency of this work and the benefits it could bring.
Madam Deputy Speaker
Questions are far too long and the Secretary of State is far too generous with his responses. Let’s try to nip that in the bud.
Jonathan Reynolds
I am tremendously excited by the opportunity my hon. Friend outlines. There are many tools she will recognise in the strategy, including the funding for innovation and for local economic development, and particularly the new strategic sites accelerator—for the first time, land assembly, getting the grid and planning in place—so we have these opportunities for the kind of inward investment offers that we receive. My hon. Friend has a very exciting local proposition, and I am looking forward to working with her on it, but we need more of them.
Carla Denyer (Bristol Central) (Green)
I welcome the investment in skills announced today. What seems to be missing, though, is a commitment to give wraparound support to the 3 million workers in the UK currently in high-carbon industries, who will need reskilling and retraining in order to make the most of the green jobs boom. Can the Secretary of State give us any information on what is planned for those workers specifically, and does he agree that the fossil fuel giants should be the ones shouldering the cost of that support?
Jonathan Reynolds
I thank the hon. Lady for the slightly positive tone of her question. I believe that the skills challenge for the UK is about not just making sure that there are opportunities for young people, but reskilling people too. We have taken forward some interesting measures inherited from the previous Government that will allow us to do it.
I would just say to the hon. Lady that when she condemns people who work in what she calls fossil fuel industries—[Interruption.] Well, perhaps “condemns” is too strong a word, but I ask her to recognise that we have sectors of our own economy that are, relative to other parts of our own economy, high-emissions industries, but on an international basis they are very competitive. It would not be appropriate to simply outsource those emissions to other parts of the world and import those products. There is a lot of Green policy that, frankly, does propose that we do that, but that is not the approach that the Government are taking. We are ambitious about those sectors for the transition and this industrial strategy is key to making it happen.
Pamela Nash (Motherwell, Wishaw and Carluke) (Lab)
I warmly welcome this ambitious and exciting industrial strategy from my right hon. Friend. Aligning vocational and technical training to the skills our industries need is plain common sense. However, in my constituency businesses often tell me that they cannot access the skills and workers they need, and young people and those retraining tell me that they cannot access the courses they need. Has the Department spoken with the Scottish Government in preparation for launching the strategy today?
Jonathan Reynolds
Yes, our officials are in close contact with all our partners in all the devolved Governments. We respect policy differences through devolution, but the kinds of things we are addressing are of interest to every part of the UK.
Max Wilkinson (Cheltenham) (LD)
I congratulate the Business Secretary, the Secretary of State for Science, Innovation and Technology, and the Minister for AI and Digital, the hon. Member for Enfield North (Feryal Clark), on listening to me over the last 11 and a half months and including in the sector plan for digital and technologies the Golden Valley development at west Cheltenham. It will unlock £1 billion-worth of investment in cyber-security and defence, which is crucial to our nation. Will Ministers monitor progress in planning and make sure that if a little extra support is needed to get the infrastructure over the line to deliver that growth, it will happen?
Jonathan Reynolds
I welcome the hon. Gentleman’s support and the contribution his local area can make. In some areas, we have a lot of good things going on, but it needs to happen faster and we have to make sure that we execute the plans we have in place. That sounds like exactly the sort of challenge in this area that we should commit to.
Gareth Snell (Stoke-on-Trent Central) (Lab/Co-op)
Ceramics UK has described today’s modern industrial strategy as disappointing and, candidly, I share the sector’s disappointment. The one reference to ceramics in the strategy is historical and geographic, with nothing about industry. For months, I and my hon. Friends the Members for Stoke-on-Trent North (David Williams) and for Stoke-on-Trent South (Dr Gardner) have been pointing out the immediate needs of a sector that employs thousands of people in our city, yet today there is nothing on gas pricing, nothing on electricity pricing and no access to the supercharger scheme. Instead, we are given an IOU for 2027. What message can I take home to those in Stoke-on-Trent this week about what in this industrial strategy will give them the help and the support that they need today, rather than having to wait for an IOU post-dated to the year after next?
Jonathan Reynolds
I say to my hon. Friend that I think Ceramics UK is misplaced in that criticism. Ceramics is recognised as a foundational sector: it is part of the materials foundational sector in the strategy. Its principal request is about energy prices. There are some ceramics businesses—I accept not that many—that get the supercharger and that will get the more generous rate. But fundamentally, the costs of a lot of those businesses do not match the intensity test, which the supercharger is based on—a sectoral and then an individual business test. That is exactly why the British industrial competitiveness scheme has been designed in such a way that they will benefit from it, and that will be a game-changer for them. There are not the same policy tools around gas prices, but of course we can see that gas prices are projected to fall from the very significant level that they have been at for future financial years.
Llinos Medi (Ynys Môn) (PC)
The industrial strategy has a commitment to increase R&D to drive growth. However, Wales has consistently missed out on its population share of UK R&D funding for years, receiving around 2% rather than the 5% we should be receiving. What are the Government doing to ensure that Wales gets its fair share under this strategy, given that research and development is vital for Welsh business to grow?
Jonathan Reynolds
I absolutely recognise that, in all the initiatives we are putting forward today that apply across the UK, every area deserves its fair share of the funding. Of course, many of the policies that I and the Department are responsible for disproportionately benefit Wales. Under the clean steel fund, the money going to Port Talbot is much more than would be allocated to it by population share. That is because there are brilliant strengths in Wales that I want to support. In this strategy —whether around aerospace and Airbus, or automotive and Toyota, or the creative industries, professional and business services, or financial services—there is so much that will benefit Wales because of the brilliant strengths in Wales. That is something to be very optimistic about, and I would be very confident about what this strategy means for Wales, while, of course, respecting the devolution settlement.
Tim Roca (Macclesfield) (Lab)
I congratulate my right hon. Friend. With over 5,000 Macclesfield jobs dependent on AstraZeneca, I welcome the health data research centre, the slashing of trial times and the focus on life sciences. Will he set out how he is supporting Department of Health and Social Care colleagues to further deliver for life sciences by finalising a realistic settlement on the commercial agreement over the pricing of medicine, and VPAG—the voluntary scheme for branded medicines pricing, access and growth—in particular, as that is very important to my constituents?
Jonathan Reynolds
I welcome my hon. Friend’s question; he is right that VPAG is significant to the life sciences sector plan and that the industry is looking for resolution on it. The life sciences sector plan will be formally launched by Cabinet colleagues to coincide with the anniversary of the foundation of the NHS. Talks with industry are ongoing and we are trying to find a settlement, which I believe is possible. We should all recognise the economic benefits of the sector for his constituency, which he carefully outlined.
Tom Gordon (Harrogate and Knaresborough) (LD)
I welcome the industrial strategy, but I want to push the Secretary of State on skills. Harrogate college often tells me that it struggles to access funding for technical and vocational training that meets the needs of local business. In the next academic year—in just a couple of months—it will face a £90,000 reduction in the devolved adult skills budget from the new Labour mayor. Will the Secretary of State clarify how the skills mission fund will work in practice for towns like mine, and whether it will be genuinely led by local economic need, not Westminster targets?
Jonathan Reynolds
I recognise the case that the hon. Gentleman makes. Some of the courses that we need and that are central to our economy—engineering is a good example—are more expensive to put on and need greater capacity. When I talk about a funding package, it is to deliver the business-led, needs-led courses to which he refers, and I would expect Harrogate college to feel the benefits of that.
Paul Waugh (Rochdale) (Lab/Co-op)
Rochdale Training provides local apprenticeships in engineering and other skills that we desperately need, and works with local employers to deliver that. Its chief executive, Jill Nagy, told me that today’s announcement of £1.2 billion in extra funding for training is warmly welcomed, as are the new foundation apprenticeships. Will the Secretary of State join me in praising the work of Rochdale Training? May I urge him to look closely at Hopwood Hall college’s bid to be one of the north-west’s technical colleges of excellence for construction?
Jonathan Reynolds
Further education has had a difficult time over the past few years and we are starting to see the kind of investment that will make a difference. We need more business input into skills’ policy, which I think is the kind of work that my hon. Friend was talking about. I am more than happy to come up the road from Stalybridge to Rochdale one Friday, and we can have that conversation in person. There will be many bids from Greater Manchester for the capital that we are putting forward, and I look forward to looking at the bid that he mentions.
David Chadwick (Brecon, Radnor and Cwm Tawe) (LD)
I commend the Government on reintroducing an industrial strategy, which is crucial for spreading out good jobs across the United Kingdom. In my constituency, the hospitality industry is crucial to our local economy as it boosts tourism, creates jobs and helps with rural regeneration, but it is struggling with sky-high energy costs. What is the Secretary of State doing to ensure that SMEs in all sectors of our economy, particularly pubs and restaurants, receive better support with their energy costs?
Jonathan Reynolds
This industrial strategy seeks to deliver more inward investment. For example, Universal is making an incredible investment in Bedfordshire, where is seeks to deliver the biggest theme park in Europe, creating 8,000 jobs in hospitality. People should recognise that there is a direct relationship between what we are doing here, what we are trying to get more of and the kind of benefits that the hon. Gentleman talks about. We have set a target of 50 million visitors by 2030, so such issues are represented in the strategy and, as I say, some of the issues that are not covered will be in the small business plan, which will come out imminently next month.
Noah Law (St Austell and Newquay) (Lab)
As the chair of the all-party parliamentary group on critical minerals, I have an interest that I know you share, Madam Deputy Speaker, in critical minerals. I welcome the strategy’s recognition of the role that regional clusters, like that in Cornwall, can play. Given Cornwall’s resurgent critical minerals ecosystem, what steps is the Secretary of State taking to ensure that the region is at the forefront of secure domestic supply chains, and that we benefit directly from that growth in green industrial jobs?
Jonathan Reynolds
That is a great question. I remember our conversations about critical minerals, Madam Deputy Speaker. They are a key enabler and they will be even more important in the future. My hon. Friend will know that some of the National Wealth Fund’s initial investments have been into different critical minerals businesses in his region, because of the importance of that part of the UK to this strategy. We need more international co-operation on critical minerals as well, but he should rest assured that the British Business Bank and the National Wealth Fund are focused on this area because it is so important, and there will be big benefits to his area from that.
Samantha Niblett (South Derbyshire) (Lab)
As the founder of Labour: Women in Tech, I wholeheartedly welcome the industrial strategy’s ambitious goals to scale our tech sector and workforce. On 15 July in Parliament, I am hosting WeAreTechWomen and Oliver Wyman for the launch of the Lovelace report. The report has identified that between 40,000 and 60,000 female professionals are leaving the tech sector annually or seeking advancement opportunities elsewhere, which represents well over £1 billion of economic opportunity that could be unlocked by better supporting our existing skilled workforce. Does the Secretary of State agree that both inspiring new talent and supporting great existing talent and diverse teams, across all demographics, is fundamental to maximising returns on our industrial strategy investments and securing the UK’s position as a world-leading technology nation?
Jonathan Reynolds
I thoroughly agree with my hon. Friend. It is brilliant to see her in Parliament as she has been a trailblazer on these issues, and I recognise the case that she has put forward extremely well. I recognise that this is a core economic priority for the United Kingdom, and it is great to see her as an advocate for that on the Government Benches.
Tom Hayes (Bournemouth East) (Lab)
The CBI says that our net zero economy grew by 9% in 2023, and that it was 40% more productive and wages in the sector were 15% higher than the UK average, so I am pleased to say that this industrial strategy is betting on a winner with clean energy. I am also pleased to hear the announcement that the Government will be slashing the cost of energy for industry, but will the Secretary of State tell me, my constituents in Bournemouth and people across the south-west what the industrial strategy will do for the south-west?
Jonathan Reynolds
I am more than happy to tell my hon. Friend. We have breakdowns for every region going to every colleague; there is so much for each part of the UK that I could not possibly do it justice from the Dispatch Box. On his point about clean energy, there is so much money coming into the UK—and more in future—that it would be crazy to turn our backs on that. This is a major economic opportunity, as well as being about a safe, reliable, clean supply of energy for the UK, which is the basis of all economic activity. We can provide that while reducing energy bills for industry, so that is exactly the kind of consistent approach that this country has needed for some time.
Madam Deputy Speaker
With my apologies for not calling him earlier, I now call Jim Shannon.
Jim Shannon
You are very kind, Madam Deputy Speaker—we got there in the end.
I thank the Secretary of State for his statement, which is full of positivity. Everyone here welcomes it deep down, and if they do not, then they should: well done, Minister, and well done this Government. While I welcome the news that more than 7,000 British businesses are set to see their electricity bills slashed by up to 25% by 2027, it is clear that much more support is needed, such as a reduction in corporation tax, especially for businesses in Northern Ireland, which borders the Republic of Ireland where the corporation tax rate is half of our rate at 12.5%. Will the Secretary of State discuss that with his Cabinet colleagues in order to provide greater support for our industries in Northern Ireland?
Jonathan Reynolds
I appreciate the hon. Gentleman’s support and kind words. There is a great deal in the strategy that will benefit every part of the UK. He knows that I take my responsibilities for Northern Ireland very seriously, particularly given the complexities of trade policy, the Windsor agreement and how that has to work for the benefit of everyone in Northern Ireland. He will know that the UK has the lowest corporation tax of any G7 country, so it is quite an ask to reduce it still further. However, I understand the genuine competitive pressures of being in business in Northern Ireland for people who are close to the border, and how they are affected by the mobility of capital and talent. We all have a responsibility to work with our colleagues in the Northern Ireland Executive to ensure UK Government policy works to the maximum, and provides consistent and co-ordinated benefits. I am regularly in touch with my colleagues in Northern Ireland and regularly visit. I am planning a visit right now—I might even look up the hon. Gentleman and make a visit to his constituency to address some of these issues.
Luke Myer (Middlesbrough South and East Cleveland) (Lab)
I welcome the focus in this industrial strategy on the Tees Valley region and, in particular, our clean energy sector, which represents some 8,800 jobs today and will scale up dramatically into the future. As I said in September, this will only work if we have alignment on skills. When do we expect to see the clean energy workforce strategy? What steps will the Government take to align skills into the future?
Jonathan Reynolds
It is important for colleagues to understand that the modern industrial strategy published today provides a tool through which other non-economic Government Departments can filter their own policy decisions, in a way that is consistent and to the benefit of UK business. For instance, the Home Office will publish its exemptions to the more restrictive skilled worker visa in relation to what the sectors set out in the strategy need and, for the first time, decisions will be made through that lens. My hon. Friend mentions a specific piece of work by colleagues in the Department for Energy Security and Net Zero on the workforce strategy, to which they are committed. I do not have a timescale for that, so I will ensure that I or colleagues write to him about it. The prize here is genuinely joined-up Government. To be frank, the preparation of the strategy has not always been easy, but it is the kind of consistent approach to policy, competition and competitiveness in the UK that is very important.
Joani Reid (East Kilbride and Strathaven) (Lab)
I welcome this ambitious industrial strategy and commend the Secretary of State on the long-term thinking, which is something we did not see under the previous Government. East Kilbride in my constituency, Scotland’s first new town, was born out of an effective post-war industrial strategy, but over recent years my constituents have been given false hope by both the SNP and Tory Governments, with big promises and little delivery. Will the Secretary of State give my constituents reassurance that this time, the strategy will deliver and we will get growth and jobs?
Jonathan Reynolds
I will be frank with my hon. Friend’s constituents. In the past, Governments have produced documents that do not have much longevity but have a lot of analysis without necessarily having real measures behind them. That is why we have launched this strategy on energy, finance and skills, on the powers that local areas need and how those programmes will work consistently across Government. This is always about creating the conditions for the private sector to thrive in, but anyone looking at the big challenges facing UK industry will see them addressed in this document.
Catherine Atkinson (Derby North) (Lab)
Worryingly, only 9% of secondary vocational learners are studying engineering, manufacturing and construction compared with the OECD average of 32%, so I warmly welcome that this industrial strategy confirms a £100 million investment to support engineering skills in England. Will the Secretary of State outline how that funding will help to meet skills shortages and deliver growth across the country, including in engineering cities such as Derby?
Jonathan Reynolds
Derby has an incredible pedigree in engineering skills. I agree with the case that my hon. Friend has made so strongly. I have added some funding from my own Department to that from the Department for Education around engineering, because the shortages are so acute and the opportunities so great. These are great jobs, careers and lives for young people or anyone transferring into that sector, with more funding for the courses, more flexibility in the courses that can be run and more capacity in technical excellence colleges. Although it is also about availability in all parts of the country, we could not get a better pedigree than my hon. Friend has in Derby, which is a great success story for this country and for her local area.
Amanda Martin (Portsmouth North) (Lab)
I warmly welcome the comprehensive and business-friendly UK modern industrial strategy; it is an investment in Britain, British people and British businesses. As home to the world-class and innovative defence cluster, Portsmouth has strength in maritime, space, drones, autonomous systems and assets such as QinetiQ, Airbus, His Majesty’s Royal Navy base, Griffon Marine, Portsmouth Aviation and Solent freeport. I could continue the list with many more brilliant businesses in my city, but time does not allow. Will my right hon. Friend say how “Invest 2035” can work alongside future devolution and local government reorganisation to help unlock growth, investment, skills and jobs for Portsmouth businesses and residents?
Jonathan Reynolds
It is very important that we show the British people that the added investment and huge increase in defence spending from this Government will see real economic benefits for them and opportunities for their families, as well as fulfilling the core function of national security. My hon. Friend mentions devolution. We have measures in the strategy for local areas, whether or not they have mayoral leads on innovation and mayoral growth funds, many of which build on the very successful work of Andy Burnham, my Labour mayor in Greater Manchester, and Richard Parker in the west midlands, who have done brilliant things. Those are the most developed and mature mayoral areas. We can see what has worked in those places, and it really is starting to work. Let us have more of that across every bit of the UK, tailored for local needs and with the right tools that those political leaders need.
Alan Strickland (Newton Aycliffe and Spennymoor) (Lab)
I welcome this incredibly ambitious industrial strategy. I will ask specifically about our high-tech SMEs. At NETPark in Sedgefield, we have a cluster of more than 40 businesses making satellite components, medical imaging equipment and other high-tech products. However, as the Secretary of State knows, too often they struggle to get private finance, and they have struggled in the past to get Government innovation funding. How will this strategy really put the rocket boosters behind high-tech SMEs in regions such as the north-east?
Jonathan Reynolds
I always take a close interest in success stories from the north-east of England, and what my hon. Friend outlines is incredibly exciting. The high-tech SME cluster that he talks about will benefit in many ways from each of the sector plans, whether they are in advanced manufacturing, creative industries or defence. There are provisions on access to finance for them in this strategy and the dedication of resources from the defence budget, for instance, for that sector. Those businesses are set to fly, and with this industrial strategy my hon. Friend has a real chance to build and communicate the opportunities for them over the next few years.
Melanie Ward (Cowdenbeath and Kirkcaldy) (Lab)
I really warmly welcome the modern industrial strategy, particularly all that it has to offer for Scotland. I also welcome the Business Secretary’s personal enthusiasm and energy about the potential for growth in Scotland—what a contrast with the SNP, which cannot help but talk Scotland down. I particularly welcome the good news for skills and innovation, which will benefit Scotland, and for reduced energy costs, particularly electricity costs, for our key manufacturing sites in Scotland. As I have discussed with my right hon. Friend, the ethylene plant at Mossmorran is a large employer in my constituency, supporting hundreds of high-skilled, well-paid jobs in Fife. Will the Business Secretary outline how this industrial strategy and other Government action will back the chemicals industry and the jobs it supports?
Jonathan Reynolds
I think it was about a year ago when my hon. Friend and I were on the campaign trail in her constituency and visited businesses with the message that we would implement a strategy of this kind. I think that the Scottish economy, when mapped against our eight industrial strategy sectors, could be a description of Scottish success, and we should be excited about that. The ethylene cracker at Mossmorran is a very important facility. As my hon. Friend will know, high gas prices across Europe mean that all the crackers across Europe are under some degree of distress. I have been in conversations with my right hon. Friend the Secretary of State for Scotland about that and other crackers in Scotland that are affected by those high gas prices, and we continue that work. More generally, the chemicals sector is recognised as a key foundational sector in this strategy. It has had a lot of pressure in recent years, and we are seeking to improve that business environment.
Lola McEvoy (Darlington) (Lab)
This is mint for British industry. In my region, we have a proud history of making world-class products and exports. We make trains, and this Government have secured the future of Hitachi at Aycliffe. We make cars, and this Government have negotiated a tariff deal to protect the Nissan plant in Sunderland. We make hugely advanced bioindustry products, such as the covid-19 vaccine, at the Centre for Process Innovation in my constituency in Darlington. As the chair of the APPG on industrial strategy, I know that the finance solutions and energy subsidies will be roundly welcomed by business up and down the country. Will the Secretary of State outline how this strategy will lead to more highly paid, highly skilled job opportunities for workers in constituencies such as mine who have seen more plants shut than saved over the last 14 years?
Jonathan Reynolds
I thoroughly thank my hon. Friend for her question and for all her work in her role in Parliament advocating for these issues. There is a huge amount in this strategy for the sectors that she outlines. I was very proud of the work that we did with Hitachi. On cars, it is about the tariffs, the Drive 35 programme, energy costs and the ZEV mandate, and we will make any changes that we need for a competitive position. This is fundamentally about what business needs, but it is also about better-paying jobs in every part of the UK. My hon. Friend’s part of the world in particular will stand to benefit considerably from this programme.
Alex Baker (Aldershot) (Lab)
I congratulate the Secretary of State on the ambition of this industrial strategy and invite him to visit Cody technology park in Farnborough, which is home to world-class defence and aerospace innovation, from QinetiQ’s development of DragonFire to one of only two commercial wind tunnels in the world. What role does he see for places such as Cody, which are already contributing but have the potential to do even more to help to create jobs and fire up our industrial base?
Jonathan Reynolds
It is brilliant to hear from my hon. Friend; she has so much to be proud of in her constituency. I have visited Farnborough on several occasions, and it has a range of things that are directly represented in this strategy. I also thank her for being a huge ally on the work that we have done on access to finance for the defence sector, which has been an important message for us to send out about national security and the huge economic opportunities that rightly should come from the increase in defence spending that this Government have committed to already.
Sarah Coombes (West Bromwich) (Lab)
The Black Country has been an industrial powerhouse for hundreds of years; it is famous for making everything from the glass in the White House to the Big Ben clocktower and the chemical odorant that people will smell when they turn on the gas hob. Will the Secretary of State set out how this 10-year plan for industry will support Black Country manufacturing businesses with lower energy prices and upskill the next generation of people for these highly skilled, well-paid jobs? Would he like to visit one of my brilliant businesses in West Bromwich?
Jonathan Reynolds
I certainly would love to visit—I am happy to commit to that. I am surprised that my hon. Friend did not claim her constituency to be the birthplace of the industrial revolution, because I think a few colleagues have gone there, and she has a claim to it as well. Whether it is funding for lower energy costs, skills in the pipeline for young people, access to finance, a regulatory environment that fosters growth or expanding Made Smarter, which is a fantastic programme that we will have more of, there is so much in this strategy that will make a difference to her area. Perhaps we will go and visit some businesses together and take that message to them.
Dr Allison Gardner (Stoke-on-Trent South) (Lab)
The industrial strategy rightly recognises the role of ceramics as a key foundational industry and, of course, the central role of Stoke-on-Trent not just historically but in the exciting new world of advanced ceramics—providing parts for wind turbines and even small modular reactors, if we get the investment our way. As the Secretary of State has mentioned, ceramics has the additional challenge of being a gas-intensive industry. As such, I welcome the Government’s commitment to the energy-intensive industries compensation scheme—a snappier name would be nicer—particularly in supporting decarbonisation and technological innovation. May I ask the Secretary of State what specific support is planned to aid the ceramics industry, not only in managing its energy costs but in supporting its decarbonisation?
Jonathan Reynolds
I thank my hon. Friend for her question. She has already heard me outline the eligibility, and the foundational role that ceramics plays in the strategy and the support it can receive. She is also right that we have committed to the energy-intensive industries compensation scheme review that the industry wanted. We should all recognise that the ceramics sector faces more challenges with decarbonisation than some other sectors, and we have to be a supportive partner in that, particularly by recognising some of the technological limitations that currently exist. As I said in answer to a previous question, we have to look at where we are—perhaps we have higher emissions from a sector, but where is that sector internationally? Would it be in our interest to see those emissions exported abroad and emissions as a whole go up? I do not think it would. That is the approach I will always take to the ceramics sector or any other sector to ensure that we are doing the right thing, both for the climate and for British jobs and British industry.
Madam Deputy Speaker (Ms Nusrat Ghani)
I call Jacob Collier. [Interruption.] I call Scott Arthur.
Dr Scott Arthur (Edinburgh South West) (Lab)
Thank you, Madam Deputy Speaker. The hon. Member and I must look alike.
I refer Members to my entry in the Register of Members’ Financial Interests. Not that long ago, we had a Scottish Government in which some Cabinet members did not even believe in economic growth, so the contrast with what we have heard today could not be starker. There are 16 mentions of Scotland’s capital city in the industrial strategy, and a key one for Edinburgh South West is Heriot-Watt University’s national robotarium—the birthplace of robotics, as far as I am concerned—but it would be interesting to understand where the Secretary of State thinks universities fit into the industrial strategy, given the pressures that they face in England and the many universities in crisis in Scotland.
Jonathan Reynolds
My hon. Friend raises some very important and serious questions. Universities play a huge role in innovation and are a vital part of the clusters we are creating, but in themselves, they are something of which we should be incredibly proud. We have a world-class university sector, and every parliamentarian should be prouder of that. I do not have time to go into the detail that I would like, but universities are at the heart of our approach to innovation and economic success across the UK.
Jacob Collier (Burton and Uttoxeter) (Lab)
My constituency boasts some of the nation’s most energy-intensive industries, from manufacturing to being the home of UK brewing. As such, I welcome the news that there will be energy subsidies for energy-intensive industries, which will support those industries and local jobs in my constituency. Can the Secretary of State say more about how he will work across Government to ensure that manufacturers and brewers will not be paying champagne prices for power?
Jonathan Reynolds
I recognise that there are some regulatory issues that my hon. Friend was probably asking about, particularly in relation to the lead that the Department for Environment, Food and Rural Affairs would have on extended producer responsibility and some other aspects. I am always keen to work with colleagues across Government, and I will ensure that my hon. Friend gets the answers to his questions that he needs, but he is right to say that there are many opportunities for businesses—big and small—and for his constituents in this plan.
Tom Collins (Worcester) (Lab)
As an engineer, I am incredibly excited by the vision of engineering, industrial and innovation renewal that the Secretary of State is describing. In Worcester, we have a mission to make ourselves the best city in the best country in the world to start and grow a business. Time and again, though, the funds and research facilities intended to support innovation have not worked for our local businesses, and there has been a lack of support for mid-technology readiness level technologies. How will this strategy help businesses across the country to bridge the valley of death and grow in this decade of renewal?
Jonathan Reynolds
I thank my hon. Friend for his question, which I greatly appreciate. Worcester plays a wonderful role in our economy, and it is great to hear about that level of local ambition from him and other local leaders. There are specific funds to support innovation: £500 million has been allocated for innovation, which will be split among areas up and down the country. The access to finance provisions will also apply to his constituency, whether that is the British Business Bank having more firepower and more ability to support the kind of items that he has in his constituency, the beefed-up capacity for UK export finance, or the National Wealth Fund working hand in hand with the private sector. The brilliance that my hon. Friend has in Worcester is exactly the kind of platform that stands to benefit greatly from the measures in the industrial strategy.