(1 day, 19 hours ago)
Commons ChamberRead Hansard Text Watch Debate Read Debate Ministerial Extracts
Wera Hobhouse (Bath) (LD)
The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)
Small and medium-sized bicycle manufacturers are important for our green growth ambitions. Through the Government’s industrial and trade strategies, we are backing innovation, sustainability and skills development to help businesses, including cycle manufacturers, to scale up so that they can compete globally and continue driving forward the UK’s cycling economy.
Wera Hobhouse
I, too, wish Robert a happy next new adventure, Mr Speaker, and I wish Her Majesty the Queen a happy birthday.
The removal of anti-dumping duties on e-bikes from China has raised serious concerns for UK cycle manufacturers, which are mainly small and medium-sized businesses. With similar duties on standard bikes and parts now under review, many UK manufacturers are worried about navigating the complex trade investigation process. Will the Minister meet industry representatives to ensure that the voices of our small and medium-sized British cycling manufacturers are heard?
Gareth Thomas
I associate myself with your statement, Mr Speaker, and with the comments of the hon. Lady.
I recognise that there is concern about this issue among cycle manufacturers. The hon. Lady may be aware that some anti-dumping measures have been extended until 2029, but some have been lifted as a result of the work of the Trade Remedies Authority. We are always happy to meet cycle manufacturers to discuss their concerns—whether it is with the hon. Lady or directly with industry, I am very happy to ensure that such a meeting takes place.
Dame Harriett Baldwin (West Worcestershire) (Con)
It is not just cycle manufacturers that are having to pedal hard to survive under this Government. With business survey after business survey stating that tax is the biggest worry for business, will the Minister take this opportunity to assure businesses that the Chancellor will not be coming back to burden them with more in her Budget this autumn?
Gareth Thomas
First, I commend the hon. Lady for the humour in her question. As she will recognise, this is Business and Trade Question Time, not Treasury Question Time, where tax measures are usually dealt with, but I am sure that the Treasury will note her comments. I should perhaps point her to recent surveys of business confidence: the Lloyds Bank business barometer pointed out that business confidence is at a nine-year high. I am sure she will be delighted by that news.
Dame Harriett Baldwin
Well, except for the fact that the whole House will have heard that the Government are not prepared to rule out saddling cycle manufacturers and other businesses with more taxes this autumn. Will the Minister at the very least assure the House that he and his fellow Business Ministers are making representations to the Treasury that businesses really cannot take any more tax rises?
Gareth Thomas
I am grateful to the hon. Lady for her suspicion that I have considerable influence with the Treasury. We are always in discussions with Treasury colleagues, and indeed colleagues across Government, about what more we can do to support business. Another indicator of improving business confidence is a survey by the American Express business barometer, which pointed out that almost three quarters of small and medium-sized enterprise bosses are confident about the future—again, up from last year.
Mr Connor Rand (Altrincham and Sale West) (Lab)
The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)
Through our landmark Employment Rights Bill, we are making paternity leave and unpaid parental leave day one rights. This aligns then with maternity and adoption leave. But we are going further. We have launched the parental leave review, fulfilling our manifesto commitment. The review will explore how the system can support working families and our modern economy. It will assess the system against four key goals: supporting maternal health; boosting economic growth through increased labour market participation; enabling flexible, balanced childcare choices; and, of course, ensuring the best start in life for our children.
Mr Rand
Improving our paternity leave offer will be good for parents, good for children and good for our economy. I recently organised an event with Labour colleagues, the Union of Shop, Distributive and Allied Workers, and Dad Shift, where we heard from Tesco about the benefits that six weeks of fully paid paternity leave had brought to its business. As part of the parental leave review, which I warmly welcome, will the Minister proactively reach out to businesses, such as Tesco, that are leading the way on paternity leave?
Justin Madders
I thank my hon. Friend for his efforts in this area, and indeed for highlighting the excellent work that some businesses are already doing, going further than the statutory minimum. As we know, when it comes to supporting working parents, every little helps. This review will be evidence based. It will reflect and consider the views and experiences of those who engage with the parental leave and pay system. I encourage all businesses to contribute to the call for evidence, which was launched earlier this month. I can assure my hon. Friend that I plan to engage constructively with businesses, including Tesco and business representatives, throughout the period of the review.
Robin Swann (South Antrim) (UUP)
Hugh’s law would have brought in job protection and financial support for parents of children aged between 29 days and 16 years and guaranteed parental leave while those children were receiving palliative care. The Government voted down an amendment last night to the Employment Rights Bill that would have brought that in. This campaign has been fought by Ceri and Frances Menai-Davis, and many Government Back-Bench MPs have stood side by side with them through that campaign. Why has the Minister turned his back on those parents and those children?
Justin Madders
We are not turning our back on parents or children. We are actually having the biggest expansion in workers’ rights and family-friendly policies that we have seen in a generation. Clearly, we will not be able to satisfy every issue in this area, but that is the point of the review. We are looking at the system in the round. It needs improving and modernising and that is what we intend to do.
Andrew Ranger (Wrexham) (Lab)
The Secretary of State for Business and Trade (Jonathan Reynolds)
I am delighted by the hugely positive response that the industrial strategy has received. It is a plan to lift every part of the country, making it easier and quicker to do business and to invest. For north Wales, with its formidable prowess in advanced manufacturing, it is a very significant set of proposals. The same is true for Wales as a whole, as I demonstrated on Monday at Port Talbot at the groundbreaking of the new electric arc furnace, which will get the enhanced supercharger discounted energy price.
Andrew Ranger
I totally agree with my right hon. Friend; this Government’s industrial strategy backs businesses in Wales not just with words, but with action and billions of pounds of investment over the next decade. In Wrexham, we are fortunate to have fantastic businesses, such as Kellogg’s and Hydro Aluminium among others, which have exciting ambitions for high-tech expansion. One barrier that needs to be overcome is sufficient power supply to the industrial and trading estates where they are based. Will the Secretary of State please update me on how the strategic sites accelerator will support them in doing so and the proposed timeline for its implementation?
Jonathan Reynolds
I thank my hon. Friend warmly for his question. I am excited about this. The strategic sites accelerator will prepare and accelerate sites for development by using Government tools, such as land acquisition, planning certainty and infrastructure support, to overcome existing barriers to investment on sites. It is designed to create jobs, to attract investment and to support our industrial and net zero priorities. It will work alongside other initiatives such as the connections accelerator service, which will streamline grid connections for major investment projects. It is about going faster, being bigger and being more ambitious for new investments, such as those that could come to my hon. Friend’s area. I can tell him that the Office for Investment is working jointly with the Ministry of Housing, Communities and Local Government and Ofgem to take this vital work forward. I expect capital to be deployed initially under this programme in 2026-27.
Charlie Maynard (Witney) (LD)
The Minister for Trade Policy and Economic Security (Mr Douglas Alexander)
I am conscious of the hon. Member’s long-standing interest in these matters. I can assure him that exports of F-35 components directly to Israel are already suspended where they are for use by Israel and not for re-export to other countries.
Charlie Maynard
Our strategic export licensing criteria state specifically that licences should not be granted where there is
“a clear risk that the items might be used to commit or facilitate a serious violation of international humanitarian law.”
Given that the courts have sent this question back to Parliament, does the Minister accept that Israel is committing breaches of international humanitarian law; does he accept that the export of F-35 components is aiding in the commission of these wrongful acts; and if he maintains that we are not in breach of our own arms export laws, will he explain on the Floor of this House the basis for how he thinks we are compliant with our own laws?
Mr Alexander
The F-35 programme is the largest international collaborative defence programme in the world. The hon. Gentleman refers to the recent High Court judgment, and as the High Court itself noted, the UK cannot make changes to the F-35 programme unilaterally—that requires agreement across all the partner nations and the availability of a workable programme-level change to isolate end users across thousands of different components.
Luke Myer (Middlesbrough South and East Cleveland) (Lab)
The Secretary of State for Business and Trade (Jonathan Reynolds)
My hon. Friend’s area is one of the most exciting investment locations in the world—in clean energy opportunities, carbon capture and storage, and offshore wind, but also in creative and digital investment, chemicals production and steel. Specific interventions for the Tees Valley include recommitting £160 million for its investment zone, enhanced support for the Teesside freeport for clean energy industries, and a lot of money for transport for city regions funding. Of particular interest to businesses in his area will be the new British industrial competitiveness scheme, which will reduce electricity costs by £35 to £40 per megawatt-hour for many businesses in Teesside.
Luke Myer
I am pleased that the Government have been listening to us and backing Teesside businesses with serious investment—I have been pushing for investment in clean power and advanced manufacturing. Last year, the 2024 UK tech jobs report named Middlesbrough as the UK’s fastest-growing tech destination. Will Ministers work with me to bring in investment in frontier technologies such as artificial intelligence to our region as well?
Jonathan Reynolds
My hon. Friend and his colleagues are incredible champions for bringing investment into the area, and I recognise and thank him for that support. He is right to say that some of the perhaps more traditional industries, though very exciting for the future, are not just the only story in his area. He has mentioned tech and the creative industries too, and I would say they are huge opportunities. Specifically, our investment in skills to make sure that there is a pipeline of talent in every part of the country is a formidable and significant contribution to delivering on those opportunities. I look forward to continuing to work with him on these issues.
Emma Foody (Cramlington and Killingworth) (Lab/Co-op)
The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)
By the end of last month, approximately £1.1 billion had been paid in total redress to almost 8,000 claimants. This represents a fourfold increase over the past 12 months, with more than 5,000 victims receiving compensation for the first time. We have also committed to extending redress to family members. As the House knows, there is still much left to do, and we are considering carefully the recommendations that Sir Wyn Williams made last week in this regard.
Emma Foody
I thank the Minister for his answer. He will be aware of a Northumberland constituent of mine who was a victim of the faulty Horizon system, leading to her losing her job and her business and becoming a victim of abuse in her own community. Despite my assistance, my constituent remains without an outcome to her claim. Will the Minister please look into this case and ensure that her claim is progressed as quickly as possible, so that she can receive justice?
Gareth Thomas
My hon. Friend describes just one example of the terrible human impact that the Post Office scandal has had on many good people up and down our country who served their communities and who were treated unbelievably badly by the Post Office. I will of course look into the case that my hon. Friend has raised. We are determined to do more to help not just her constituent but all those who are still waiting for compensation.
Jim Shannon (Strangford) (DUP)
I thank the Minister and the Government for all they are doing in this area. The frustration is that those who deserve compensation, having been traumatised physically, emotionally and financially, have waited many years for the redress that they should be getting. There seems to be a delay for some who should be receiving the moneys now. Indeed, they are now being told that it could be another three years before they will receive any money. I genuinely urge the Minister and Government to make sure that people get the money ASAP—in other words, let us get it done this year.
Gareth Thomas
I, and I suspect the whole House, share the hon. Gentleman’s frustration. There were many opportunities to stop the Post Office scandal, and compensation should have been paid out to all the victims a long time ago. We have quadrupled the amount of compensation paid out in the past 12 months, and 5,000 victims who had not received compensation 12 months ago have now done so. Is that good enough? Of course not; there is a lot more to do, and the recommendations that Sir Wyn Williams made last week are helpful in that regard.
Ben Coleman (Chelsea and Fulham) (Lab)
The Minister for Trade Policy and Economic Security (Mr Douglas Alexander)
The UK continues to make progress across its trade agreements programme to bring prosperity to communities across the country. On 30 June, for the US, we implemented legislation creating two new quotas for imports of beef and ethanol, and the US removed tariffs on UK civilian aerospace goods and reduced tariffs on UK auto as agreed in the UK-US economic deal that we announced back in May.
Ben Coleman
One of the businesses that stands to benefit from the EU trade agreement is a butcher and deli in my constituency that imports a lot of its products from Spain. At the moment, its shelves are unfortunately half-empty because its small Spanish supplier—effectively a man with a van—says he simply cannot cope with all the Brexit form filling. However, he has said that he expects things to get better from later this year thanks to the Government’s deal with the EU, which is great news. Will the Minister set out what steps are being taken to implement the removal of the Brexit red tape of sanitary and phytosanitary checks, including the likely timetable?
Mr Alexander
I thank my hon. Friend for his question. I express my regret that that business, like so many across the country, finds itself buried in red tape as a consequence of the implementation of Brexit by the Conservative party. There are technical aspects of our agreement with the European Union that need to be worked through, but businesses across the country, such as the butchers and deli he described, will be willing us on in that endeavour.
Bradley Thomas (Bromsgrove) (Con)
When is a trade deal not a trade deal? It has been nine weeks since the Prime Minister announced a deal to protect steel from US tariffs, and 10 weeks since the Secretary of State said that the India deal was “signed, sealed and delivered.” Will the Secretary of State publish the details of these important deals without delay before recess, or will he apologise for misleading the House?
Madam Deputy Speaker (Ms Nusrat Ghani)
Order. We do not accuse other Members of misleading the House. A little word before that—“inadvertently”—would support that question. No doubt the hon. Member will wish to withdraw that.
Mr Alexander
Thank you, Madam Deputy Speaker. I am struggling to keep up with the Conservative party’s position as to whether deals have been done. As I recollect, 34,000 workers in Jaguar Land Rover know exactly the difference that a Labour Government are making, given the challenge they would have faced with more than 25% tariffs had it not been for the work of the Prime Minister and the Business Secretary. But that is only one sector of the economy. In relation to steel and aluminium, of which the hon. Member spoke, we are continuing to work with the United States to ensure that the agreement to remove 25% tariffs on UK steel and aluminium can be implemented as soon as possible, but we are unique in the level of tariffs set compared with every other country in the world.
Dr Allison Gardner (Stoke-on-Trent South) (Lab)
May I thank the Secretary of State for meeting regularly with me and my colleagues regarding the challenges facing the ceramics industry? I look forward to continuing to work with him to seek solutions for the challenges we face. What assessment has the Department made of the potential impact of its trade strategy on British businesses, and in particular the ceramics industry?
Mr Alexander
I saw that the general secretary of the GMB was focused on exactly those issues in relation to the ceramics industry this week, and I applaud the concern he has shown for a key part of many local economies across the country. I assure my hon. Friend that we have given regard to every sector of the UK economy when negotiating the three trade deals secured by the Government—with the United States, as we just discussed, as well as with the European Union and, critically, with India.
Chris Law (Dundee Central) (SNP)
The United Kingdom Internal Market Act 2020 is a restrictive piece of legislation that centralises power to the UK Government and allows them to override the Scottish Parliament. Yesterday, the Labour Government confirmed they would not repeal or amend that Tory Act. Indeed, the Secretary of State for Scotland previously said that the Act was “bad and damaging” and undermined devolution, and the Business and Trade Secretary voted against it when in opposition. Will the Business and Trade Secretary confirm whether he would vote against it again now? Does he agree with the Secretary of State for Scotland that this Tory Act is an attack on the integrity of the Scottish Parliament?
Mr Alexander
Well, well, well; the grievance machine is being fired up again by the Scottish National party, even at the last Business and Trade questions. The reality is that the changes made to the United Kingdom Internal Market Act are proportionate, targeted and focused critically on supporting the many Scottish businesses that contributed to the consultation. I respectfully suggest to the hon. Gentleman that he should listen to Scottish business, which disproportionately benefits from the removal of barriers and the avoidance of new barriers going up in the critical single market that is the United Kingdom.
Sarah Hall (Warrington South) (Lab/Co-op)
Liz Twist (Blaydon and Consett) (Lab)
Lewis Atkinson (Sunderland Central) (Lab)
The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)
To breathe life back into Britain’s high streets, we are addressing antisocial behaviour and crime, rolling out banking hubs, stamping out late payments, establishing a licensing taskforce, empowering communities to fill vacant properties and reforming the business rates system. There is more to do and our forthcoming small and medium enterprise strategy will set out further steps.
Sarah Hall
Warrington South is home to brilliant businesses such as Gourmand!, an award-winning French café, Mamars, a wonderful artisan bakery and deli, Hideout, which serves the best piña colada in Warrington —apparently—and the soon-to-open Zak’s Shack, a new parent and child-focused café in Stockton Heath. Such businesses are the beating heart of our town, built by local entrepreneurs who serve the community they love. However, set-up costs, business rates and other barriers make it harder for them to operate. Will the Minister outline how the Department specifically supports the independent hospitality and food retail sector?
Gareth Thomas
My hon. Friend makes Warrington sound like a particularly attractive place for a Business Minister to visit, so if she does not mind, I will add that to the list of places that I am keen to visit. Independent businesses, as she rightly says, play an important role in supporting local growth and community cohesion. We plan to introduce permanently lower business rates for retail hospitality and leisure properties with a rateable value of under £500,000 and we have introduced a hospitality support scheme to co-fund projects that aim to help those furthest from the job market into employment and to boost productivity. I think that will help many of the businesses in her constituency.
Liz Twist
When I am out and about in my constituency, I am always impressed by the dedication of staff and small business owners who bring our high streets to life. Places such as Blaydon’s Precinct and Consett’s Middle Street are at the heart of local pride and identity, but after years of austerity and a cost of living crisis, empty shops and the loss of vital amenities such as banks have taken a toll, especially in the north-east. What are the Government doing to support local businesses and revitalise high streets such as those?
Gareth Thomas
Before I had heard about the attractions of Warrington, I had heard about those of Consett. I was pleased to visit my hon. Friend’s constituency and meet many of the great businesses there just before Christmas.
We have introduced measures to fill empty properties, including high-street rental auction powers for councils, which can free up space for new businesses. We are also protecting vital services on the high street through the roll-out of banking hubs, with 170 opened so far. This week, we published our Green Paper on the future of the Post Office, which sets out our plans to do even more to provide banking services on high streets, which, again, I hope will help to bring more footfall on to the high street and help businesses such as the ones that she knows only too well.
Lewis Atkinson
In the last Budget, the Government committed to a fairer business rates system that protects the high street. Making sure online retailers pay a fair share of rates will help support businesses on the high street in Sunderland. Will the Minister update the House on the engagement and design work that his Department are carrying out so that that new fairer system can be announced in the Budget?
Gareth Thomas
The Chancellor announced last year that from the next financial year, 2026-27, we intend to introduce permanently lower tax rates for retail hospitality and leisure properties. A permanent tax cut will ensure that those businesses will benefit from much-needed certainty and support. Treasury colleagues have been engaging businesses on their proposals for a fairer business rates system. The Government plan to publish an interim report on their work and more detail will also be set out in the Budget in the autumn.
Mr Gagan Mohindra (South West Hertfordshire) (Con)
Small independent businesses like Kitchen Croxley in my constituency have suggested that, to counter this Government’s national insurance contribution increases, they will need to serve cold coffee and replace staff with touchscreens just to afford to stay open. What will the Minister do to ensure that small businesses are encouraged to grow, rather than being punished for being entrepreneurial, so that local bakeries like Kitchen Croxley can keep serving us cake and coffee?
Gareth Thomas
We have taken a range of measures to support businesses such as the one the hon. Gentleman mentions. My right hon. Friend the Secretary of State announced our plans for a business growth service to make it much easier for businesses to get the advice they need on how they can start up and scale up. The Chancellor set out in the spending review a two-thirds increase in the capacity of the British Business Bank, which will make it a lot easier for businesses to access the finance they need to start up and scale up. As many hospitality businesses continue to point out the significant crime and antisocial behaviour in town centres, the extra police officers that we have recruited, and our commitment to recruit still more, will make it easier to bear down on shoplifting and other antisocial behaviour.
Nick Timothy (West Suffolk) (Con)
Labour-led West Suffolk district council now charges cafés and restaurants £500 for pavement licences for tables and chairs in front of their premises. Their justification for the cost is that the process for granting a pavement licence is more complex than it may initially appear as it involves a number of checks with highways authorities, the police and counter-terrorism advisers. Will the Minister look at pavement licences as an example of where we can deregulate?
Gareth Thomas
The hon. Gentleman makes an interesting point about what further measures we can take to bear down on the cost of regulation for small businesses. It is one reason the Chancellor set up a licensing taskforce that has brought forward a series of recommendations and will shortly publish its conclusions, which the Government will respond to quickly. We are absolutely determined to do what we can to bear down on the cost of regulation for SMEs.
Shockat Adam (Leicester South) (Ind)
I refer the House to my registered interest as a small business owner. Retailers in my constituency, including city centre retailers, tell me that they are on their knees, crippled by soaring costs, rising national insurance contributions, rising antisocial behaviour, expensive and poor parking, and a lack of any city centre regeneration. These long-standing independent businesses—the lifeblood of our community—are now considering closure. Has the Minister considered their clear ask, which is reducing or freezing business rates, and having affordable and accessible parking and community-focused events to revive our high streets?
Gareth Thomas
One measure that the hon. Gentleman referenced was business rates. As I said in answer to previous questions, we are determined to introduce permanently lower business rates for the retail sector for businesses with properties under a value of £500,000. I hope that will make a difference to businesses not only in Leicester in his constituency, but more generally across the country.
Greg Smith (Mid Buckinghamshire) (Con)
At the heart of every high street are wonderful hospitality SMEs—pubs, cafés, restaurants, bars and coffee shops—yet the 2024 Budget was a hammer blow to them. With £3.4 billion of extra costs, one in 10 restaurants faces closure this year. Indeed, Labour’s Budget has already cost hospitality 69,000 jobs. For context, in the same period the previous year, hospitality created 18,000 new jobs. Can the Minister assure the House that businesses that are hanging on by a thread will not face a hard landing this winter?
Gareth Thomas
The hon. Gentleman is one of those Conservative Front Benchers who have yet to tell us, if they do not like the increase in national insurance contributions, how they would pay for the extra investment in hospitals, schools and our police force. I gently say that the difficult decisions the Chancellor of the Exchequer had to take in the Budget last year were a direct result of the £22 billion black hole left to us by the Conservatives. Our small business strategy will set out further measures that we will take to have the back of British entrepreneurs.
Greg Smith
That answer is simply not good enough for the 63% of employees in the hospitality sector whose jobs are on the line. Yet we now read in the press that the Government appear set on forcing restaurateurs to monitor customers’ calorie consumption—another crippling blow of red tape on top of national insurance hikes, minimum wage hikes and the regulatory firestorm of the Employment Rights Bill. Jeremy Clarkson is not wrong when he says that the Chancellor is
“using a machine gun on publicans.”
Can the Minister really look hospitality SMEs on our high streets and beyond in the eye and say that this is somehow good for business?
Gareth Thomas
One reason the hon. Gentleman’s party lost the confidence of business is that it promised many, many times that it would reform business rates and never did. The Chancellor of the Exchequer has set out our commitment to permanently lower business rates for the hospitality sector—we have already taken steps in that regard—and she will set out our plans to do even more. That is one way in which we are backing up our commitment to SMEs in the hospitality sector and more generally.
Callum Anderson (Buckingham and Bletchley) (Lab)
The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)
On 26 June, the Department published our trade strategy, announcing the expansion of UK Export Finance’s capacity to £80 billion. We also announced measures to give smaller firms, including those in Buckingham and Bletchley, better access to export protection insurance. The significant increase in the capacity of the British Business Bank will also help to improve access to capital for SMEs, including, potentially, in my hon. Friend’s constituency.
Callum Anderson
Innovative high-growth companies, such as Envisics in Bletchley, are developing and exporting world-leading technology-driven products but face difficulties securing the domestic capital needed to scale up. Too often, overseas investors and, sometimes, Governments, offer both finance and other incentives for them to relocate. Will the Minister set out in more detail how his Department is working across Whitehall to ensure that domestic financial institutions, including Government-backed entities, are helping companies like Envisics to firmly anchor their innovations here in the UK?
Gareth Thomas
We heard during our SME consultation that one of the biggest issues facing small and medium-sized businesses that want to scale up relates to access to finance. Indeed, since 2011, the stock of bank lending to SMEs relative to GDP has fallen by around 50%, which graphically demonstrates the significance of my hon. Friend’s point. We have been working closely with Treasury colleagues in particular, and when we launched the industrial strategy, we also launched a funding arrangement for the British Business Bank that will provide £4 billion of capital to our high-growth innovative businesses to ensure that they remain anchored in the UK and are able to scale up here.
Perran Moon (Camborne and Redruth) (Lab)
The Secretary of State for Business and Trade (Jonathan Reynolds)
As we have heard, the industrial strategy is a plan to lift every part of the country, and it specifically recognises clean energy opportunities for offshore wind and nuclear in the great south-west. The strategy also highlights foundational industries relevant to its eight sectors’ supply chains, including spotlighting critical minerals clusters in Cornwall. It included the launch of a new UK Export Finance loan guarantee scheme for domestic suppliers selling critical minerals to UK exporters. The upcoming 2025 critical minerals strategy will aim to secure a steady supply of minerals, optimising domestic resources and enhancing international collaboration.
Perran Moon
As the Secretary of State mentions, with its vast renewable energy and critical mineral resources, Cornwall is uniquely positioned to become a key driver of UK economic growth. Although the industrial strategy emphasises the role of mayoral strategic authorities and city regions, particularly in the north and midlands, does the Secretary of State agree that Cornwall’s immense industrial potential must not be overlooked, and can he reassure me that unleashing the Cornish Celtic tiger with the economic investment that we need is not contingent on joining a mayoral combined authority?
Jonathan Reynolds
I can give my hon. Friend that assurance. I was dismayed this morning to wake up and hear the Reform party actively arguing for less investment in Britain and telling businesses they should not invest in the UK. I find that absolutely absurd. There are a whole range of tools for local areas to shape their economies in the industrial strategy. Some relate to mayors, but many do not. It has the mix of tools that is required to unleash the potential of every part of the country, including his own.
Andrew George (St Ives) (LD)
Further to that very encouraging response from the Secretary of State, does he acknowledge that Cornwall is the poorest region in the United Kingdom? It has great opportunities, as the hon. Member for Camborne and Redruth (Perran Moon) pointed out, but it has been hampered since losing the highest level of EU structural aid. If we are going to take the opportunities and overcome the challenges that Cornwall faces, would the Secretary of State be prepared to meet the hon. Member for Camborne and Redruth, me and other Cornish Members to establish a bespoke strategy for Cornwall to drive the private and public investment needed?
Jonathan Reynolds
First, let me say that, as someone who used to spend their family holidays in Cornwall, I must protest: I have had two questions from Cornish colleagues and not a single invite to visit Cornwall over the summer holidays. I really think that is unacceptable.
The economic history of Cornwall is particularly interesting—I have had this discussion with my hon. Friend the Member for Camborne and Redruth (Perran Moon)—and I recognise some of the specific issues that the hon. Member for St Ives (Andrew George) has identified there. Of course, I am always willing to meet him, either in Cornwall or here in Parliament, to have that discussion. I believe there are key parts of the industrial strategy that will deliver the opportunities and the tools required to unleash what both colleagues are trying to achieve.
Lee Barron (Corby and East Northamptonshire) (Lab)
The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)
We have frozen the small business multiplier for 2025-26, protecting over 1 million ratepayers from bill increases, and we are creating a fairer business rates system that protects the high street and supports investment. Our forthcoming SME strategy will set out further plans to help businesses on the high street and beyond.
Lee Barron
In Corby and East Northamptonshire, retail and wholesale jobs account for the largest share of employment, supporting thousands of jobs. Will the Minister confirm that, unlike the last Tory Government, which promised to reform business rates but did absolutely nothing, this Labour Government are committed to delivering a fairer business rates system to support the vibrant high streets that our communities deserve?
Gareth Thomas
I know that Northamptonshire has a thriving retail and wholesale sector, and I commend my hon. Friend for championing the jobs and businesses in his constituency. He rightly says that the Conservatives promised to reform business rates. What he did not say was that they promised many times to reform business rates and never did so. We have committed to permanently lower business rates for retail, hospitality and leisure businesses. The Government are committed to publishing soon an interim report that sets out further details on the direction of travel, and confirmation of our plans will come at the autumn Budget.
Robbie Moore (Keighley and Ilkley) (Con)
I recently met the owners of Bababing in my constituency, who have opened up new premises in Keighley. They want to grow and expand as quickly as possible, but they told me that this Government are stifling business growth for not only Bababing but many other SMEs across the country due to the decisions they made in the Budget last year to increase employer national insurance and the minimum wage, and the Employment Rights Bill, which is coming down the line. Do the Government recognise that they are stifling growth, and if so, what are they doing about it?
Gareth Thomas
I welcome the establishment of Bababing in the hon. Member’s constituency. I recognise that difficult decisions had to be taken in the Budget. I am sure he has pointed out to the owners of Bababing that those difficult decisions were taken as a direct result of the £22 billion black hole that his party left us to tackle. Our small business strategy will set out a range of measures we are taking to support businesses, which I hope will help Bababing and other businesses in his constituency.
Tom Gordon (Harrogate and Knaresborough) (LD)
Christine Jardine (Edinburgh West) (LD)
The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)
We recognise the vital role hospitality plays in driving growth and strengthening all our communities. That is why we have committed to permanently lower business rates for the sector from 2026-27 and announced a hospitality fund to co-invest in projects that boost productivity and help community pubs adapt to local needs. It is also why we have launched an industry-led licensing taskforce to reduce red tape and other barriers.
Tom Gordon
I regularly meet the Harrogate business improvement district and the chamber of commerce, and we have a thriving hospitality and tourism sector in Harrogate and Knaresborough. I recently met Alison, a constituent who runs a number of local bars and restaurants, and she is worried that with the increase in employer NICs, rising energy costs and the other pressures that this Government are not getting to grips with, businesses like hers will not be there to see the benefits of business rates reform. What is the Minister doing with Treasury colleagues to support local hospitality?
Gareth Thomas
One of the most important measures that will help the hospitality sector is business rates reform. We have set out our commitment to do that, and we are working with all the different parts of the business community, including the hospitality sector, to get our reform proposals right. As I alluded to in a previous answer, we will publish an interim report giving more detail of our thinking on business rates reform, and the Chancellor of the Exchequer will confirm our plans in the Budget later this year.
Christine Jardine
I hope the Minister will join me in thanking all the hard-working hospitality staff who are about to have a very busy summer, particularly in Edinburgh West, where they are about to be immersed in the Edinburgh international festival, to which the Minister and the Secretary of State—all the Ministers, in fact—are, of course, invited. We are very hospitable in Edinburgh.
The hospitality industry is worth £198 million to my constituency, but businesses are suffering because of the national insurance changes, and in Scotland we will not benefit from business rates reform. With the national insurance changes and the impacts of Brexit and covid, it is a very uncertain time. What else will the Minister do to help businesses across Scotland that will not have the benefit of business rates reform?
Gareth Thomas
I thank the hon. Lady for her kind invitation. It is possible that I will be darkening the door of businesses in her constituency this summer.
We are determined to continue working with hospitality businesses, whether in Scotland or in the rest of the country. As I said in an earlier answer, we have set out plans for a licensing taskforce to look at what else we can do to lower the cost of red tape and regulation. As the hon. Lady rightly says, we are taking measures to reform business rates, and perhaps the Scottish Government might like to follow our example.
Matt Western (Warwick and Leamington) (Lab)
In my constituency, Lydia and Frankie both run businesses that employ around 50 individuals. They both have covid loans and energy loans on top of the usual business pressures they suffer. Beyond maintaining the current discount on business rates, may I urge the Government urgently to review business rates reform, which is so desperately needed?
Gareth Thomas
I recognise that my hon. Friend is a great champion of businesses in his constituency, and I was pleased to meet one of them when I was there recently. I absolutely recognise the significance of business rates reform. The Chancellor has been very clear that she is committed to business rates reform, and we will set out further detail on our plans in the Budget later this year.
Euan Stainbank (Falkirk) (Lab)
Despite public transport linking people from the Braes, Bonnybridge, Bainsford and beyond to Falkirk, the high street has been dwindling over the past 20 years. SNP and Tory councillors decided to cut the “free after 3” parking scheme for Falkirk town centre businesses and further drive footfall away from our high street restaurants, cafés and pubs. In the forthcoming small business strategy, will the Minister consider looking at how this Labour Government can support accessible and cheap parking in Scottish town centres?
Gareth Thomas
I very much sympathise with my hon. Friend’s frustration about what both the SNP and the Conservatives have done to free parking in his constituency. I sympathise because the Tory-run council in my constituency has taken similar steps to curtail free parking, which has undoubtedly had an impact on the town centre. I hope that the concerns my hon. Friend has articulated today will be heard loud and clear in his constituency, and that action will be taken. Our SME strategy will set out a range of steps that we are determined to take to back small businesses and help entrepreneurs across Britain.
Madam Deputy Speaker (Ms Nusrat Ghani)
I call the Liberal Democrat spokesperson.
Sarah Olney (Richmond Park) (LD)
The value that hospitality businesses bring to their local communities goes far beyond their economic contributions: they also provide a vital social value and essential entry-level jobs. Flexible hours and conditions in the sector help those with other responsibilities, such as carers and new parents, to access work, while also offering many young people their first jobs. However, retail and hospitality businesses have been hit hard by tax changes in the October Budget, and they are reporting reduced hours, cancelled investment and closures; there have been nearly 70,000 hospitality job losses just since October. As economic strategies are rolled out, what steps is the Minister taking to ensure that Department for Work and Pensions goals to get people back to work are not being undermined by policies that shrink job opportunities in these sectors?
Gareth Thomas
I completely agree with the hon. Lady about the huge importance of hospitality to all our communities and to helping many people who have difficult routes into employment to get their first steps back into a job. One of the steps we have taken is to set up our hospitality fund, working with the great organisation Pub is The Hub, to help landlords to diversify what they offer and drive more footfall into the pub. The fund also supports charities that are working with those furthest away from the jobs market to get into jobs. It is strongly supported by hospitality businesses through the Hospitality Sector Council. As I have said, we have a commitment to a small business strategy and we will set out further measures to help hospitality in that regard.
Susan Murray (Mid Dunbartonshire) (LD)
Gareth Thomas (Harrow West) (Lab/Co-op)
Over the past five years, SMEs have faced a challenging operating environment because of the consequences of the Liz Truss Budget, the poorly negotiated trade deal with Europe, covid and increasing global uncertainty. Interest rates have come down four times under this Government, we have negotiated a new trade deal with Europe and, complementing our industrial and trade strategies, we will bring forward an SME strategy to put in place further long-term support to help SMEs start up and expand.
Susan Murray
In my constituency and across Scotland, small and medium-sized businesses have taken blow after blow. The Conservatives bungled Brexit, increasing import costs, and energy costs are soaring. Most recently, the hike in national insurance contributions is decimating job opportunities in small and medium-sized businesses. What are the Government doing to support SMEs, which are at the heart of our economic growth, and to get people off benefits and back into work?
Gareth Thomas
Yes, Madam Deputy Speaker. I gently say to the hon. Lady that in a recent survey almost three quarters of SME businesses were confident about the future. She is right to challenge us to go further in increasing support for SMEs. One of the ways that we are doing that is by increasing access to finance for SMEs, through the significant expansion in the capacity of the British Business Bank.
Bill Esterson (Sefton Central) (Lab)
SME manufacturers are a key part of the planned renaissance in manufacturing in this country. Some of them are raising concerns about a lack of involvement in the Industrial Strategy Advisory Council. Will the Minister confirm that they are very much involved and have an important role to play in developing the SME strategy that he referred to?
Gareth Thomas
Absolutely. We want to hear from businesses up and down the UK, across different sectors, about the practical measures that we can take to support them and their plans to grow and develop. If my hon. Friend has particular examples of businesses that want to make representations, I am sure that we as a ministerial team would want to hear from them.
Madam Deputy Speaker (Ms Nusrat Ghani)
I call the Liberal Democrat spokesperson.
Sarah Olney (Richmond Park) (LD)
The Liberal Democrats welcome the plans in the recently announced industrial strategy to reduce some of the world’s highest industrial energy prices. However, businesses across the UK, especially in hospitality and on our high streets, are still struggling with unaffordable energy costs. What steps is the Secretary of State taking to ensure that small businesses can benefit from more sustainable pricing? Will he encourage his Cabinet colleagues to consider proposals set out by the Liberal Democrats yesterday to break the link between gas prices and energy costs, which would halve energy bills in a decade, so that people and businesses across the country can enjoy the true benefits of cheap, clean and renewable power?
Gareth Thomas
I have to apologise to the hon. Lady, because I have not yet seen the Liberal Democrats’ policy proposals, but I look forward to that treat over the summer. I am grateful to her for backing our plans on energy costs. We are supporting a pilot in the west midlands to help SMEs to reduce their energy costs. It offers full energy audits and funding to implement measures that can bring down energy costs. The scheme seems to be working well, and we have recently extended it.
Martin Vickers (Brigg and Immingham) (Con)
The Secretary of State for Business and Trade (Jonathan Reynolds)
This has been a year of real achievement for the Department for Business and Trade. From holding our record-breaking international investment summit, which saw £63 billion committed to the UK, to intervening decisively to save British Steel’s Scunthorpe site and all the shipyards at Harland and Wolff, we have safeguarded thousands of jobs. We have reformed the Competition and Markets Authority, changed the zero emission vehicle mandate, altered the remit of the Low Pay Commission and introduced the Employment Rights Bill.
We have quadrupled compensation payments to victims of the Horizon scandal. We have agreed trade deals with India, the EU and the US and published a comprehensive trade strategy to help us to secure greater access to global markets for British business. We have brought forward our industrial strategy, and last week a survey by Deloitte found that Britain has become the most attractive place to invest in the world. We are delivering this Government’s plan for change, putting money into people’s pockets, driving growth and kickstarting a decade of national renewal.
Martin Vickers
The Secretary of State has tried to paint a glowing picture of what is happening, but I can tell him that in northern Lincolnshire there are growing concerns. There have been a number of business failures in the last few weeks in the Grimsby and Immingham areas, and he will be aware of the threat to hundreds of jobs at the Prax oil refinery. All that makes it even more important that the Scunthorpe steelworks has a long-term future. Can he update the House on the state of things at Scunthorpe?
Jonathan Reynolds
I am always keen to update the hon. Member and colleagues on the situation with British Steel. We have cancelled the redundancy consultation and removed the immediate risk to 2,700 jobs. We have taken on new apprentices and invested significantly in improving health and safety on the site. We have provided significant working capital—that does not take into account yet the future revenue that will come. I am sure he will have been pleased to see that Network Rail has awarded British Steel a contract worth £500 million. We will continue to ensure that there is a long-term future for British Steel, and we will keep the House and himself updated to that effect.
Callum Anderson (Buckingham and Bletchley) (Lab)
The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)
The Government-backed invest in women taskforce is addressing many of these issues through its ecosystem working group, which promotes better access to networks, to support and to procurement opportunities. My hon. Friend is absolutely right, though, to say that we need to go further. The small business strategy will set out a range of further measures in that regard.
Madam Deputy Speaker (Ms Nusrat Ghani)
I call the shadow Secretary of State.
Andrew Griffith (Arundel and South Downs) (Con)
May I start by paying tribute to Norman Tebbit? He was a former Secretary of State for Trade and Industry and a great reformer who did a great deal to unleash growth in this country.
The only thing growing under this Government are the unemployment queues. Today, the Office for National Statistics revealed that the number of payrolled employees has fallen by 180,000 over the last year and 40,000 in the last month alone. Unemployment has been higher in every month since the Chancellor has been in office. In the last hour, we have heard news of another 500 job losses at Jaguar Land Rover. This is a great country with great people. When the Secretary of State talks to businesses, what reason do they give to him for unemployment rising?
Jonathan Reynolds
It is always nice to hear from the shadow Secretary of State. First, as he knows, the Office for National Statistics workforce survey shows that the overall number of jobs is higher after a year of this Government than it would have been if the Conservatives had remained in government—there are 380,000 additional jobs. He mentioned payroll jobs. Of course, they are important; they are one key factor, as is wages, which, as he knows, have risen faster in the first 10 months of this Government than they did in the first 10 years of the previous Government. Our productivity figures have also risen, and of course, we closely monitor the impacts of technology.
The shadow Secretary of State asked what businesses say to me. They say that this Government have brought stability after the mini-Budget disaster, which he was a key part of. They say that we have brought openness to the world and are navigating a difficult trading environment better than anyone else, and they recognise that our pro-business, pro-growth measures are delivering. There was nothing like the list I just gave of problems after 14 years of the previous Government.
Andrew Griffith
That answer was complacent and unsympathetic. It is the most vulnerable—those looking for their first shot, their first chance—who pay the price of unemployment.
Let us start again. Last night in the other place, the unemployment Bill was improved with sensible amendments to probation periods, a definition of seasonal workers that protects hospitality and agriculture, and provision for a consultation about the impact on the smallest businesses. Those measures have been proposed by employers, and by independent business groups such as the Confederation of British Industry, Make UK and the Federation of Small Businesses, who say that the Bill in its current form is deeply damaging. If the Secretary of State will not shelve the Bill entirely, will he at least commit to accepting those entirely reasonable amendments?
Jonathan Reynolds
The shadow Secretary of State talks about vulnerable people. Which Government left one in eight young people not in education, employment or training, while net immigration hit 1 million? It was absolutely shameful, and we will take no lessons from Conservative Members. He talks about tackling barriers; who gave us the highest industrial energy prices in the developed world? The Conservative party. Who is dealing with that? Who has put millions into skills and training, finance, and the tools that local areas need? Those are the things that businesses want.
The shadow Secretary of State also talks about the Employment Rights Bill. I regret the Conservatives’ knee-jerk ideological opposition to it; they could have been pragmatic. The Bill was a manifesto commitment, and we will deliver our manifesto commitments in full. There are issues on which we have to get the balance right, such as probation periods and the future monitoring of zero-hours contracts, and the commitment is of course real. Pragmatic engagement would have been a more constructive way forward than this knee-jerk ideological opposition.
Liam Byrne (Birmingham Hodge Hill and Solihull North) (Lab)
The Business and Trade Committee’s inquiry on small business is still open for evidence from Members from across the House. On Tuesday, we took evidence from the chief executive of Ofgem, who made it perfectly clear that a complete collapse of regulation in the years after covid led to thousands of businesses across our country paying higher energy bills than they needed to. Can the Secretary of State assure the House that the small business strategy, when published, will contain a strategy for bearing down on the energy rip-off that is challenging small businesses across our country?
Jonathan Reynolds
I am always grateful to the Chair of the Select Committee for his helpful and pragmatic work and engagement. I recognise the issue that he has highlighted. A lot of small businesses were locked into uncompetitive contracts after covid, and the legacy of that has been very difficult. Of course, we will always look at measures to address that. Fundamentally, we must break the link that means that gas sets the price of electricity in the UK. There are no shortcuts to that; we have to get enough clean energy on to the system to make that possible, which is exactly what the Government are doing.
John Glen (Salisbury) (Con)
Gareth Thomas
I have a high regard for Tina McKenzie and the Federation of Small Businesses more generally, and we have been working extremely closely with them on thinking through what measures should be in the small business strategy to help businesses start up, scale up and thrive more generally. I gently point the right hon. Gentleman to the slightly more positive picture painted by the fact that the bosses of small and medium-sized enterprises have more confidence. We will continue to talk to the Federation of Small Businesses, and will do so in a lot more detail.
Gregor Poynton (Livingston) (Lab)
Does the Secretary of State agree that the UK Labour Government are getting on with the serious business of delivering an industrial strategy that will support jobs in my Livingston constituency? That is in sharp contrast to the failing SNP Government, who have no industrial strategy, no plan for workers, and no plan to support Scotland’s key sectors.
Jonathan Reynolds
I very much agree with my hon. Friend. Nationalism is fundamentally a creed based on grievance, rather than real solutions, and that stands in contrast to our approach. There are specific instances where we could deliver billions of pounds of investment to Scotland if there was a change in policy from the Scottish Government, be it on new nuclear in places where Scotland could benefit from small modular reactors, or on the recent decision to pull support for the Rolls-Royce-led plan for a welding centre for apprentices in the defence sector, which would enable them to support the maintenance of Royal Navy submarines. The SNP Government are actively making decisions that get in the way of that investment. If we cannot change their policy, let us change the Scottish Government.
Josh Babarinde (Eastbourne) (LD)
The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)
The hon. Member is right to pay tribute to the tremendous work that posties do up and down the country, rain or shine, to deliver the mail. There have, of course, been issues with performance in the Royal Mail. I am happy to discuss that further with him, and to make sure, with the help of Ofcom, that we get the service that everyone deserves.
Dame Chi Onwurah (Newcastle upon Tyne Central and West) (Lab)
On Friday, the Select Committee on Science, Innovation and Technology published its report on social media algorithms, following the Southport riots. Indeed, there is a Select Committee statement on the report this afternoon. Stakeholders have expressed concern that ongoing trade negotiations with the United States might prevent the Government from responding to the report’s recommendations, holding social media companies to account and keeping the public safe online. Can the Minister reassure us that that is not the case?
Jonathan Reynolds
I can reassure my hon. Friend and all colleagues that those decisions will always be in the domain of this Government and this Parliament in the UK. There has been a lot of speculation, during the trade negotiations, about what may or may not be involved, but we have shown that we deliver on jobs, goods and services, and that is the basis of sound trade negotiations.
Ben Maguire (North Cornwall) (LD)
Gareth Thomas
I sympathise with the hon. Member’s constituents on the difficulties that they face. On the challenges that he says they face with HMRC, he may want to get in contact with my colleague, the Exchequer Secretary to the Treasury, who has responsibility for HMRC.
Amanda Hack (North West Leicestershire) (Lab)
At a panel discussion earlier this year, I joined a group of leading women in the hospitality sector, who repeatedly highlighted that the lack of female representation in leadership roles and ownership is a persistent barrier to progress in the sector. What steps is the Minister taking to support women in the hospitality industry into leadership and ownership roles?
Gareth Thomas
This is an important issue. The Invest in Women taskforce is looking at some of the very real barriers that women entrepreneurs face, both in hospitality and more generally. Access to finance is one of the challenges that we have heard back about. A fund is being put together to help women entrepreneurs with that, but we need to do more, and our SMEs strategy will set out our plans in that regard.
John Cooper (Dumfries and Galloway) (Con)
We have heard this morning that the review of the UK Internal Market Act 2020 somehow tramples on Holyrood, but in fact, the Government say:
“Devolved Governments will have greater flexibility to set rules”.
Is there not a danger that this invites the SNP Government to introduce change for the sake of change, and divergence for the sake of divergence, thus damaging trade right across the country?
The Minister for Trade Policy and Economic Security (Mr Douglas Alexander)
Well, if I am simultaneously being criticised by the SNP and the Conservative party, I am pretty sure that we have got the balance right. The UK Internal Market Act seeks to strike the appropriate balance between giving devolved Governments flexibility on policy and avoiding unnecessary barriers for UK businesses. I believe we have got that balance exactly right.
Ben Goldsborough (South Norfolk) (Lab)
The over 1,000 employees at the Lotus plant in South Norfolk and Norwich North are the pride of our constituencies, and I thank the Secretary of State for his support in recent weeks. May I ask for a meeting with him and my hon. Friend the Member for Norwich North (Alice Macdonald), so that we can talk about our discussions with local employees?
Jonathan Reynolds
I can absolutely guarantee my hon. Friend that we will have that meeting. I appreciate the work that we have been able to do together, reacting to the media reports that initially surfaced. There is some clarity from the company, but not the full degree of clarity that we need. I will make sure that we get that meeting set up for him and his colleagues.
Bobby Dean (Carshalton and Wallington) (LD)
We have just had our fifth consecutive month of job losses announced, and research shows that as many as 17% of companies are considering redundancies. What is the Government’s analysis of why this is happening?
Gareth Thomas
I gently say to the hon. Gentleman that we have had four interest rate cuts, almost 400,000 jobs have been created, our industrial strategy has been hugely welcomed, and we have had three deals, so it is perhaps not a surprise that recent surveys point to a nine-year high in business confidence.