(1 day, 9 hours ago)
Commons ChamberRead Hansard Text Watch Debate Read Debate Ministerial Extracts
Laura Kyrke-Smith (Aylesbury) (Lab)
Sarah Russell (Congleton) (Lab)
Josh Newbury (Cannock Chase) (Lab)
The Parliamentary Under-Secretary of State for Business and Trade (Kate Dearden)
This Government are committed to strengthening rights for parents. In April, we are introducing bereaved partner’s paternity leave and making unpaid parental leave and paternity leave day one rights, bringing more than 1 million parents into scope. Next year, we will further improve protections for pregnant women and those returning from maternity leave, and the parental leave and pay review will conclude, giving us recommendations and informing our next steps.
Laura Kyrke-Smith
The Government are making great strides in improving parental rights at work, but for kinship carers it is still tough. In Aylesbury, I met a wonderful lady who has become the kinship carer for her baby grandson, but she was given only 10 days of paid leave from work. She now has to take unpaid leave to care for him, which is causing serious financial strain. Will the Minister join me in paying tribute to all our kinship carers for their remarkable work and outline what discussions she is having across Government to ensure that kinship carers get the support that they deserve?
Kate Dearden
I recognise the enormous contribution that kinship carers such as my hon. Friend’s constituent make to the lives of children. The Government are committed to helping more children grow up in safe, stable and loving homes in their family network, whenever it is in the children’s best interests. I acknowledge the incredible commitment and generosity of kinship carers in opening up their hearts and homes to our most vulnerable children. Kinship carers are absolutely transforming young lives, and we should not underestimate the life-changing difference that they make every single day. Our parental leave and pay review is considering the needs of all working families who do not qualify for existing leave and pay entitlements, including kinship carers.
Sarah Russell
Since 2004, the limit on relief for small employers at which they can reclaim statutory maternity pay has been set at £45,000. Small and medium-sized enterprises want to support working parents, but they need our help to do so. Will the Minister confirm whether that will be looked at as part of the parental leave review?
Kate Dearden
I thank my hon. Friend for her advocacy on this issue. The Government acknowledge that the class 1 national insurance contributions threshold used to determine eligibility for small employers’ relief on statutory parental pay has remained unchanged for several years. Part of the relief is an additional compensation payment, known as small employers’ compensation. Last April, the Government increased the SEC rate from 3% to 8.5%, and we will increase it to 9% from 6 April 2026. The Government keep all eligibility criteria under review while balancing the needs of business and the Exchequer.
Josh Newbury
Many of us on the Labour Benches have long argued for a boost to paternity leave, which is one of the proudest achievements of the last Labour Government, but one group being let down badly is self-employed dads. Just one in six of them take leave after their children are born, and it is unpaid leave, meaning that they face a drop in income of more than £1,000 just for taking a couple of weeks off. Introducing paid paternity leave for self-employed dads would cost £38 million at most, and possibly as little as £13 million, but it would be a huge win for dads, mums and their babies. Will the Minister consider that as part of the ongoing parental leave review?
Kate Dearden
I thank my hon. Friend for his campaigning on this issue. As I have mentioned, the Government’s parental leave and pay review is under way and will conclude in early 2027. We know that the parental leave system needs to be improved and recognise that the current system does not do enough to support the many dads and partners who want to be hands-on and actively involved in caring for their children. That is why the review is so important. It will consider all current and upcoming parental leave and pay entitlements, looking at options to improve the support available to British working families and whether the support available meets the needs of working families who do not qualify for the entitlements, such as self-employed parents, as was outlined by my hon. Friend.
Jess Brown-Fuller (Chichester) (LD)
I refer Members to my entry in the Register of Members’ Financial Interests; I am the chair of the all-party parliamentary group for infant feeding and inequalities. One of the key barriers to women returning to the workplace occurs if they continue to breastfeed their children. A lot of workplaces do not provide facilities for expressing and storing breast milk. Will the Minister update the House on what the Department is doing to support women back into the workplace when they are still breastfeeding their children?
Kate Dearden
I thank the hon. Member for raising this important question in the House today. We are committed to ensuring that every parent feels secure at work, particularly breastfeeding mums when they are returning to the workplace. She will know of the different bits of legislation we are introducing through the Employment Rights Act 2025 to help women back into work, whether that is making it more unlawful to dismiss pregnant women and mothers on maternity leave or making it easier for people to work flexibly and for employers to make those provisions in the workplace. I would be keen to hear more about the work that the hon. Member and other Members from across the House are doing on the APPG.
Jim Shannon (Strangford) (DUP)
I thank the Minister for that very positive answer. There is nobody in this House or further afield who does not welcome the improvement of parental rights at work. I had a chance to speak to the Minister beforehand, so she will know where my question is coming from—I ask it on behalf of the small and medium-sized businesses that may find it difficult to cover those who are on parental leave. Has anything been done to help businesses, especially the small ones, that might find it difficult to put someone in place to cover those people’s jobs when they are off?
Kate Dearden
I agree with the hon. Gentleman that family-friendly workplaces strengthen our workforce and our economy, and are important in reducing the turnover of staff and retaining high-quality staff. That is why it is really important that we are working with businesses, small and large, on our wider parental pay and leave review. In every area of my work, I am very conscious of the need to work closely with businesses in different areas, recognising that we share the same goal of keeping people in work, and especially of supporting parents and making sure that workplaces are much more family-friendly.
Callum Anderson (Buckingham and Bletchley) (Lab)
The Parliamentary Under-Secretary of State for Business and Trade (Chris McDonald)
We are supporting private sector investment in Buckingham and Bletchley by working with partners across the Oxford-Cambridge growth corridor to find new opportunities for businesses. I acknowledge the work of my hon. Friend in launching the Bletchley investment taskforce, which is bringing together private capital and local partners, using infrastructure such as East West Rail to improve connectivity, and working with OxCam partners so that local businesses benefit from innovation, skills and inward investment.
Callum Anderson
As the Minister says, I launched the Bletchley investment taskforce last year to attract the businesses, investments, jobs and apprenticeships that local people need, and we are developing an investment prospectus to deliver that end. Will the Minister meet me and taskforce members to ensure that the Government are working hand in hand with local partners?
Chris McDonald
I congratulate my hon. Friend on his work with the Bletchley investment taskforce. I know that businesses in his constituency, such as Envisics, Carnot and Pulsar, have benefited from the work he has done, and I would be very happy to ensure that he gets a meeting with the relevant Minister.
Frank McNally (Coatbridge and Bellshill) (Lab)
The Minister for Trade (Chris Bryant)
Promoting Scottish industry overseas is one of our prime objectives. Whether it is opening up new markets such as India for Scotch whisky, securing new beef opportunities in the United States of America, securing contracts for Scottish steel in new bridges in Ukraine, or promoting financial services around the world, we are on the case. I have even seen Tunnock’s Caramels in LuLu in Doha.
Frank McNally
With up to £8.2 billion of private investment, the Lanarkshire AI growth zone delivered by this Labour Government represents one of the largest industrial investments in the history of Scotland. At its heart is a partnership between Lanarkshire’s own DataVita and the American cloud computing company CoreWeave. Such partnerships are critical to supporting the industries of the future, so what further steps can my hon. Friend take to promote Scottish companies overseas to secure such high-quality jobs and deliver even stronger growth?
Chris Bryant
I pay tribute to my hon. Friend for the work he has done to make sure that the UK Government have delivered in his constituency. I am glad that he has raised the Lanarkshire AI growth zone, because it is really important in trying to make sure that the industries of the future are at the heart of the jobs of the future in Scotland. I look forward to the SNP welcoming this in the next few moments.
Chris Law (Dundee Central) (SNP)
Thank you, Mr Speaker. Of course, I will always welcome the fact that Scotland punches above its weight, whether it be industries abroad or investment in Scotland. Indeed, under the SNP, foreign direct investment has been higher in Scotland over the last 10 years than anywhere else in the UK outside of London—something I would expect the UK Government to also celebrate. Instead, we learned through a leaked memo this week that the Prime Minister told senior Ministers of the Government to go against the wishes of the Scottish Government when taking decisions. Does the Secretary of State agree with the Prime Minister? Does he not agree that Scotland makes the best decisions when it is the people of Scotland who make those decisions, which will happen only when it becomes independent?
Chris Bryant
It is like an open goal, isn’t it, Mr Speaker? Sorry—you do not have a view.
I believe that we achieve far more by our common endeavour than by going it alone. That is why I am a passionate supporter of the Union. Of course there are specific things about the Scottish economy that we want to drive forward. For instance, 54% of Scottish exports go into the European Union. If we manage to secure the sanitary and phytosanitary deal that we are trying to negotiate with the EU at the moment, that will pay enormous dividends to Scotland that it would never secure were it entirely on its own. Separatism never works.
Dave Robertson (Lichfield) (Lab)
The Parliamentary Under-Secretary of State for Business and Trade (Chris McDonald)
I thank my hon. Friend, who is an advocate and champion of businesses in Lichfield. As I am sure he is aware, we are making sure that the UK is the best place in the world to invest by backing priority sectors through our industrial strategy. The advanced manufacturing sector plan will strengthen UK supply chains in sectors such as automotive, aerospace and clean energy industries, ensuring that businesses in Lichfield, such as its manufacturing and logistics businesses, get the skills, technology and new commercial opportunities that they need.
Dave Robertson
The quantum technology sector is hugely important for the UK. We have world-leading researchers and businesses innovating in healthcare, defence and many more industries, but quantum firms tell me that as they grow, they find it harder and harder to secure the investment that they need to commercialise their exceptional ideas. The risk that we face is that they will take their businesses out of the UK in order to seek that investment. That is why I recently established the all-party parliamentary group on quantum technologies to help Members of both Houses to understand this rapidly evolving sector. What can the Government do to ensure that our quantum businesses get the investment that they need to grow here in the UK?
Chris McDonald
I thank my hon. Friend for his work in establishing the all-party parliamentary group on quantum technologies. He is right to identify these technologies as very important for the future, and to put his finger on the particular problem that we have in the UK: while we are brilliant at innovating and investing in research, we have historically struggled with scale-up. That is not something that this Government are prepared to accept. Just as we are investing in critical minerals and automotive connected mobility technologies, we are investing in this area. The British Business Bank is doubling its annual investments to ensure that we can support scale-up and bring forward at least 10 new-to-market growth-stage funds so that we can leverage pension investments and help British businesses to stay and grow in the UK.
Dr Andrew Murrison (South West Wiltshire) (Con)
An increase in private sector investment is being seriously held back by the failure of the Government to publish their defence investment plan. Has the Minister any idea when this much-awaited document will hit the streets?
Chris McDonald
The Government recognise the importance of the defence industrial plan, which will be brought to the House as soon as it can be. On private sector investment, £10 billion of investment came in from the regional summits, and £79 billion of investment was identified in the last industrial strategy quarterly report. Investors are voting with their money, and they are investing in the UK.
Dame Harriett Baldwin (West Worcestershire) (Con)
There was a new private sector investor in the Royal Mail last year. As we heard yesterday in the House, the regulator has let the universal service obligation slip, so will the Minister update the House on how his colleague’s meeting with the regulator went yesterday?
Chris McDonald
The Minister responsible for the Post Office and the Royal Mail, my hon. Friend the Member for East Renfrewshire (Blair McDougall), is sitting beside me. Just yesterday, he spent 90 minutes in the House answering questions from Members who have had problems with the service across the whole of the country; I have seen such problems in my constituency as well. The Government are clearly not happy with the level of service from the Royal Mail, and the shadow Minister will hear a full response to Question 15, when my hon. Friend will stand at the Dispatch Box and tell her everything that she needs to know about that particular meeting.
David Pinto-Duschinsky (Hendon) (Lab)
Lloyd Hatton (South Dorset) (Lab)
The Secretary of State for Business and Trade (Peter Kyle)
The industrial strategy focuses on business investment and creating high-quality jobs. We back our strengths and are unblocking barriers, including through £1.2 billion of skills investment by 2028-29. This Labour Government are investing in skills, in jobs, and in creating wealth and opportunity across the United Kingdom.
David Pinto-Duschinsky
I thank the Secretary of State for his answer. Communities like mine in Hendon were let down by 14 years of economic instability and the lack of a strategic approach to driving growth under the Conservative party. Will the Secretary of State set out how our modern industrial strategy will help to accelerate growth in places like Hendon?
Peter Kyle
I absolutely will. First, Hendon has a champion in you—I mean my hon. Friend—and that counts for a lot. It also has a champion in you, Mr Speaker, as you make sure that we get through these questions so swiftly and efficiently. I can assure the House that the industrial strategy has delivered, on average, over £7,900 more in wages in the sectors that we are supporting through it. Over 50,000 jobs have been supported through investment commitments made to the industrial strategy’s eight sectors in the last quarter alone. This Government are attracting investment, spending it wisely and making sure that all communities, including Hendon, benefit from it.
Lloyd Hatton
It is no secret that clean energy is creating the next generation of well-paid jobs, and it is essential that South Dorset gets its fair share of them. The development of offshore wind at Portland, including the exciting Morwind and PortWind projects, would certainly help to create much-needed maritime, engineering and construction jobs for local people. With that in mind, will the Minister work with me, the Department for Energy Security and Net Zero, and the Crown Estate to support the development of offshore wind off the coast of Portland?
Peter Kyle
It would be a pleasure to work with my hon. Friend to unlock more investment in offshore wind in South Dorset. Dorset council and the Crown Estate have already committed up to £1 million to support a feasibility study for a £500 million clean energy port facility adjacent to Portland port that has been proposed by energy developer Morwind. Clean energy industries are expected to support 860,000 jobs across the UK by 2030, including up to 100,000 direct and indirect jobs in offshore wind. Thanks to the work that my hon. Friend is putting in, I am sure that South Dorset will benefit from this incredible and growing British industry.
Dame Harriett Baldwin (West Worcestershire) (Con)
Of course, there are lots of well-paid jobs in the steel sector. In fact, the taxpayer is now subsidising every job at British Steel to the tune of £110,000. Can the Secretary of State update the House on how his negotiations are going with Jingye, and on when he will finally publish his long-awaited steel strategy?
Peter Kyle
I am very grateful for the hon. Lady’s question. Of course, after 14 years of the Conservatives running the steel industry, we have landed in a place where this Government are having to sort it out. I can reassure her that the negotiations with Jingye are well under way. I will update the House shortly on progress and, of course, on the strategy that I have been working very hard on, with colleagues, on behalf of the steel industry.
Sarah Olney (Richmond Park) (LD)
Research from the Entrepreneurs Network shows that 54% of Britain’s 100 fastest growing companies have a foreign-born founder or co-founder. International entrepreneurs play a vital role in driving innovation, investment and job creation across the UK, yet this Government are recklessly introducing unworkable visa regulations for those very people. Since the Budget in October 2024, 110,000 jobs have been lost in the hospitality sector and 74,000 in retail, and 700,000 graduates are currently unemployed. Youth unemployment has just hit 16%. What impact assessment have the Government undertaken on the impact of their proposed changes to indefinite leave to remain on job creation, and what conversations has the Minister had with the Home Secretary regarding this damaging disincentive to those looking to build their businesses and create jobs here in the UK?
Peter Kyle
I am afraid that the hon. Lady describes the doom-laden Lib Dem world that she inhabits, not the real world that is inhabited by entrepreneurs and businesses right across the country. The reality is that 381,000 more people are in work since the start of 2025 because of this Labour Government. She may have missed the fact that my Department, under my leadership and this team, has set up the global talent taskforce, accompanied by a global talent visa. Around the world, we are out there hunting down the best talent, attracting people to the UK and aligning this endeavour with investment, making the UK the best place to invest, to grow and to scale a business anywhere in the world.
Rosie Wrighting (Kettering) (Lab)
The Minister for Trade (Chris Bryant)
We want to build new opportunities for start-ups and scale-ups to export around the world. That is why we are providing tailored market advice, free training through our business academy, export finance and support on the ground in international markets.
Rosie Wrighting
British fashion is recognised globally for its creativity. At the London Fashion Week just gone, designers such as Erdem, Tolu Coker and Simone Rocha showcased the very best of British talent. With international buyers up by 17%, we showed that we have not only the raw talent here, but the business minds to commercialise it internationally. What steps is the Department taking to help emerging British fashion brands translate that creativity into export growth and scale internationally?
Chris Bryant
My hon. Friend makes a really good point by raising th4e example of London Fashion Week. She is quite right that lots of businesses in Northamptonshire are working in this field. One key thing we do through NEWGEN is to provide support to people—including, in fact, some of those she mentioned, such as Erdem and Simone Rocha—to start finding new export markets overseas. We send people to Paris Fashion Week and to Pitti Uomo, and our creative industries are a really important part of how we intend to build on that in the future. To use the name of another business in her constituency, I think Weetabix is based there—and we want everybody to have three Weetabix for breakfast so we can really export around the world.
Rishi Sunak (Richmond and Northallerton) (Con)
At the recent India AI summit, I was delighted to participate in an event, with the Deputy Prime Minister, highlighting the opportunities for British and Indian growing technology companies to do more in each other’s markets. I am looking forward to another such event in London in the coming weeks. Will the Minister join me in commending both our high commissioners—Their Excellencies Lindy Cameron and Vikram Doraiswami—for their steadfast commitment to strengthening the links between our two fantastic technology sectors?
Chris Bryant
The right hon. Gentleman makes a really good point. I noticed that he was commending the Government for securing the free trade agreement with India, which previous Governments were not able to secure, and he did so generously. Mr Speaker, I may have misled the House previously by suggesting that the India free trade agreement would enter into force this summer, because I am very hopeful that it will actually enter into force this spring.
The key thing is not just to have a free trade agreement, but to deploy it and make sure that businesses take advantage of that opportunity. Our two high commissioners—both in India and here—are absolutely essential to making that happen. I look forward to working with the right hon. Gentleman to do that not only in India, but in Ukraine, as I note he has been appointed to help Zelensky’s Government with reconstruction in Ukraine. I am the Minister for Ukraine reconstruction, and I hope we can work together to achieve that, too.
Gareth Davies (Grantham and Bourne) (Con)
We all want innovative British companies not just to start up in Britain, but to scale up in Britain, too. I welcome the Minister’s previous comments, and actually his enthusiasm, for our most innovative companies. However, he will know that the Chancellor’s decision to cut venture capital trust rate relief will be very damaging. How does he explain the disconnect between his Department’s words and what the Chancellor is doing?
Chris Bryant
We are trying very much to focus on the key sectors where we know we can really deliver, which is precisely what bringing together the trade strategy, the small business strategy and the industrial strategy is designed to do. I was delighted to be at the security and policing trade event down in Farnborough yesterday, and it was fascinating to see the small companies—SMEs make up a lot of that sector—that have really been supported by different Departments, including the Home Office, the Department for Business and Trade, and the Treasury, to scale up and take their product to market. I think I was able to persuade the Malaysian Government to secure quite a few contracts with British businesses as well.
Gareth Davies
I am grateful to the Minister for that answer, but I asked specifically about VCT rate relief. The last time that rate relief was cut, under the last Labour Government, fundraising was cut by two thirds and it took a decade for that to recover in the sector. Specifically on VCT rate relief, which has been cut from 30% to 20%, will he commit to meeting the Venture Capital Trust Association, the industry body, and will he take its concerns to the Chancellor and ask her to reverse course?
Chris Bryant
Of course, I am happy to meet the industry body and listen to its concerns, as we do all the time. However, I just want to make the point that at the moment the DBT is concentrating on taking what we do well in this country and really ensuring we have an opportunity to do it even better. That focus is a key part of what our trade strategy, our small business strategy and our industrial strategy are all about.
David Mundell (Dumfriesshire, Clydesdale and Tweeddale) (Con)
Sir Gavin Williamson (Stone, Great Wyrley and Penkridge) (Con)
Jerome Mayhew (Broadland and Fakenham) (Con)
The Parliamentary Under-Secretary of State for Business and Trade (Kate Dearden)
The Government recognise the central role the hospitality sector plays in supporting jobs, sustaining high streets and strengthening community life. That is why we have significantly increased the hospitality support fund, providing £10 million over three years to help hospitality businesses become more resilient, allowing them to thrive. We have permanently reduced business rates for eligible retail, hospitality and leisure properties, benefiting 750,000 properties. We are also beginning cross-Government work on a high streets strategy, developed with businesses and representatives, to be published later this year.
David Mundell
Energy costs are obviously a huge issue for hospitality businesses in a large rural constituency such as Dumfriesshire, Clydesdale and Tweeddale, but they are also an issue for hospitality business customers, because generally people travel to those businesses using their cars. Will the Minister and her colleagues in the Department lobby the Prime Minister and the Chancellor to ensure that the proposed rise in fuel duty does not go ahead in September?
Kate Dearden
I recognise that energy costs remain one of the biggest pressures facing hospitality businesses. I meet them regularly—including just this week—to make sure I am aware of their concerns and experiences on the ground. The real risk to businesses is dependence on volatile international gas markets, which we have, of course, seen; we have been left exposed to global energy shocks. The Government are prioritising on having more of our own power here in Britain. We are focusing on that to tackle the root cause of unstable energy markets. We are working closely with businesses, and across the sector, to understand the pressures, and we will continue to do so in a responsible way.
Sir Gavin Williamson
I am deeply concerned, as I am sure the Minister is, about the rising rate of youth unemployment, which is currently standing at 15%. One of the key employers of young people is the hospitality sector, as well as the retail sector. When I speak to businesses in my constituency of Stone, Great Wyrley and Penkridge, so many of them reference the fact that they have been hit by business rates and the impact of national insurance. That is discouraging investment and reducing job opportunities for young people. What action is the Minister taking to reverse that trend?
Kate Dearden
I agree that hospitality provides first jobs and career pathways for young people—a really important opportunity. As I have said many times in the House, it was my experience into employment, as I am sure it was for many other colleagues. Young people absolutely deserve that opportunity, which is why our focus is on skills and training, and getting young people into work. We will continue to back employers who take on apprentices and provide those opportunities, whether providing full training costs for young apprentices aged 16 to 21, or through employers not being required to pay national insurance contributions for all apprentices under the age of 25.
Under the previous Government, the number of youth apprenticeships was cut by 40%, and they presided over a massive increase in young people not in education, employment and training. I recognise what we are working with, but we want to provide opportunities for young people. We will not leave an entire generation of young people behind. We are looking to our £820 million youth guarantee and so much more to provide that employment support and to give them a guaranteed job, recognising the sector is vital.
Jerome Mayhew
Six hospitality venues are closing every single day under this Government. If the Government actually asked the sector why, businesses would tell them: it is because of the jobs-killing national insurance tax rises—literally a tax on jobs—as well as the red tape and additional costs of the Employment Rights Act 2025. When are the Government finally going to realise that those job losses and business closures are not happening despite the work of the Government, they are happening because of it?
Kate Dearden
The Conservative party left deep economic scars on our economy: weak growth, insecure work and a fragile labour market. This Government are restoring stability and rebuilding opportunity for people. Hospitality in particular is a vital sector for our high streets and for people. It thrives when the economy grows, wages rise, and people have more money to spend. We will always support our hospitality businesses, but do so responsibly and sustainably. They are at the heart of our high streets and community, and that is why we are backing them. We are reforming the broken system of business rates that the Conservatives left and did nothing about, and building a better support system for businesses, so they can thrive and support all employment, particularly for our young people.
Sarah Coombes (West Bromwich) (Lab)
Drivers looking for refreshment on the motorway have regular signs to point them to the available hospitality, but it is less easy for drivers of electric vehicles to see where they can get a coffee and a charge because of arcane rules that prevent EV signage on motorways. This is also a problem on A roads—one charge company told me it was quoted £150,000 to put up two signs on an A road. Given that many hospitality businesses have partnerships with EV charge providers, will the Minister work with the Department for Transport to change these mad signage rules and support hospitality and EV charging?
Kate Dearden
I thank my hon. Friend for bringing this issue to the House today. We are working closely with industry to promote consumer confidence in electric vehicles and their charging infrastructure. As at the end of February 2026, the Government and industry have supported the installation of more than 118,000 public chargers. In a move to help EV drivers to plug in to the rapidly expanding charging network, the Government are also modernising EV charging signage on major A roads, with changes allowing larger EV charging hubs to be signposted from major A roads, too. We are working with local authorities to make it easier to provide that signage to charging facilities on local roads.
Ms Julie Minns (Carlisle) (Lab)
For almost a year, the constituents of my friend and neighbour, the right hon. Member for Dumfriesshire, Clydesdale and Tweeddale (David Mundell), have enjoyed the benefits of the guest beer agreement. Given that the Society of Independent Brewers believes that a right to buy a guest beer drives customers into pubs, can the Minister update the House on when she expects to announce the results of the beer market review and the merits of introducing a guest beer agreement in England?
Kate Dearden
My hon. Friend and I have discussed this matter at length. She champions the pubs in her constituency, and I thank her for it. We recognise the importance of independent breweries and pubs, and remain committed to ensuring that the beer and pub sector remains diverse, competitive and rooted in local communities. We have reviewed the beer market to assess any barriers facing small breweries and will announce the outcome in due course.
Sarah Olney (Richmond Park) (LD)
In the Q4 2025 quarterly economic survey, 52% of businesses reported utility costs as a pressure that is driving them to raise prices, and there is a particular impact on the hospitality sector. Recent research by the British Chambers of Commerce shows that more than a quarter of businesses will struggle to pay their energy bills over the next 12 months, and this survey was conducted before the recent escalation in the middle east. Last week’s forecast by the Office for Budget Responsibility also did not take into account any potential impact from the jump in oil prices triggered by the strikes in Iran. The fuel duty hike in September is already expected to hit families and small businesses hard, so will the Secretary of State speak to the Chancellor now about scrapping this damaging policy?
Kate Dearden
The hon. Lady will have heard in my earlier remarks that I absolutely recognise those pressures and meet hospitality businesses regularly to hear their concerns; energy costs have, of course, come up as one of the biggest pressures facing them. I recognise the concerns those businesses will have when looking at the Gulf conflict and its possible impacts. As the hon. Lady will have heard in my earlier answer, the real risk to businesses is dependence on the volatile international gas markets, which has left us exposed. She will know the work that we are doing in different Departments to recognise that and to tackle that root cause in order to provide better support for businesses. We are looking at the unstable energy markets that have left us exposed and trying to ensure that we have more power here in Britain; we will work with the sector closely and across Government on that.
Tom Rutland (East Worthing and Shoreham) (Lab)
James Asser (West Ham and Beckton) (Lab)
The Secretary of State for Business and Trade (Peter Kyle)
UK-EU collaboration is vital for growth and security, with 46% of the UK’s total trade, after all, with the EU. In recent weeks, I have gone to Brussels and signed a new competition co-operation agreement, furthering the partnership between our two territories in the interests of businesses. I had constructive meetings with Commissioners Ribera, Mînzatu and Virkkunen.
Tom Rutland
After years of the Conservatives and Reform trying their best to ruin our relationship with our nearest neighbours, and damaging business exports, this Labour Government have been working hard to ensure that my constituents feel the benefit of our renewed relationship with the European Union. Will my right hon. Friend update the House on the work he is doing to ensure that businesses like Worthing’s very own musical instrument business Hobgoblin Music can benefit from the reset in relations we have had with our European neighbours?
Peter Kyle
I am grateful to my hon. Friend and constituency neighbour down in sunny Sussex for that question. The reset relationship with the EU has been fundamental and has delivered for businesses right across Britain, including Hobgoblin in Worthing on the sunny south coast of England. We are tackling the barriers to trade. The dialogue we have with the EU on business mobility and recognition of professional services will unlock opportunities into the future. Where working with the EU delivers for Britain, we will do so enthusiastically.
James Asser
I put on record my role as chair of the all-party parliamentary group for Bulgaria. The APPG recently visited Sofia, where we met businesses that are keen to build their trade relationships with this country, particularly in the energy and tech sectors. We also saw the good work being done by our embassy in partnership with the UK-Bulgarian chamber of commerce. Does the Secretary of State agree that we need to look at trading with many of the newer markets in eastern Europe, which are keen to create trade, particularly when we have active business communities from those countries in the UK that are keen to build a partnership that will benefit both our country and theirs?
Peter Kyle
My hon. Friend is absolutely right, and his work in this area is incredibly important. Our trade with every one of the newer EU member states has increased over the 12 months to September 2025, and I can give some examples of the kind of work we are engaged in. We are supporting Rolls-Royce, which is planning to build up to six small modular reactor units in the Czech Republic. One of the EU’s fastest growing economies in Europe is, in fact, Poland, and we won Polish Airlines’ first order of 40 Airbus aircrafts, which will benefit the British economy. We have also agreed to start trade policy dialogue with Norway, and we are negotiating a trade agreement with Switzerland to boost trade services. Non-EU countries of course play a vital role in that tapestry as well.
Vikki Slade (Mid Dorset and North Poole) (LD)
A sector in need of urgent attention is road haulage—moving not only goods but people across Europe for the purposes of tourism and education but also, importantly, film, TV, sport and music. My constituent Cameron works mainly in the music sector, supporting European tours and festivals. He tells me that the 90/180-day rule is leading to cancelled events and job losses, with some firms only employing dual nationals, using European firms rather than British ones or flying drivers home to swap out on longer journeys to avoid breaching the rules. Although the rules have existed since 2021, as the Secretary of State has told me, they have not been fully enforced. As part of the UK-EU reset, will he look at finding a way to help professional drivers keep the show on the road?
Peter Kyle
The hon. Member points to one of the areas where the Brexit deal negotiated by the Conservative party let down Britain. We are aware of those issues, and they are part of our negotiations. We will see what we can do for the sector into the future.
Clive Jones (Wokingham) (LD)
I have heard from so many businesses in Wokingham that have suffered post Brexit with masses of red tape limiting their exports. Losing key trade relationships in Europe has meant that many local businesses have seen their profits evaporate. What are the Government doing to develop and strengthen trade with Europe, so that businesses in Wokingham can start to grow again? Agreeing a bespoke customs union would be a really good start.
Peter Kyle
The area over which we have the most agency is regulation in this country, and this Government are pledging to reduce the burden on business by 25%. We are very aware of the issue of regulation and barriers to trade, and I mentioned it in my meetings with three EU commissioners just in the last fortnight. Part of the reset is aimed at reducing the burdens on business.
It is good to see that Members from many parties in this House have a real interest in engaging in debate about healing our relationship with the EU and creating new opportunities with our biggest trading partner—with the exception of one party opposite, whose Members are all sitting there, silent. I wonder why.
Daniel Francis (Bexleyheath and Crayford) (Lab)
The Parliamentary Under-Secretary of State for Business and Trade (Kate Dearden)
Pubs and micropubs like the ones in my hon. Friend’s constituency are at the heart of all our communities. From April, every pub will receive a 15% reduction on its business rates bill, with bills then frozen in real terms for a further two years. Three quarters of pubs will see their bills stay the same or fall, saving the average pub around £1,650 next year. We are also launching a review of how pubs are valued for business rates and investing £10 million through the hospitality support fund to help pubs diversify and to improve productivity across the sector.
Daniel Francis
I recently visited the Bird & Barrel micropub in Barnehurst, which also operates the Bexley Brewery in Slade Green in my constituency. They informed me that, due to the number of tied tenants in the constituency, they have access to less than 8% of the local pub market across Bexleyheath and Crayford. They are pressing me, and I will be pressing, like my hon. Friend the Member for Carlisle (Ms Minns), to see the pubs code updated to support micropubs and breweries. Will my hon. Friend give some more detail about when we may see some more progress on that matter?
Kate Dearden
What a champion my hon. Friend is for micropubs in his constituency. From Anchor Bay to Bakewell Tart Stout, Bexley Brewery showcases an excellent range of beers, and small brewers and micropubs such as the Bird & Barrel play a vital role in supporting local communities and economies. Alongside the beer market review, the Government are carrying out a statutory review of the pubs code and the Pubs Code Adjudicator, as well as a post-implementation review to assess the code’s impact since 2016. The Government’s report covering that work will be published as soon as practicable.
John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)
The Parliamentary Under-Secretary of State for Business and Trade (Kate Dearden)
The Government closely monitor business confidence across the hospitality sector and recognise that businesses face real and sustained pressures. That is why we have announced targeted support measures to help the sector remain resilient. They include: permanently lower business rates for eligible retail, hospitality and leisure properties; a significant increase to the hospitality support fund; and action to reduce regulatory burdens by pressing ahead with licensing reform for a new national licensing policy framework to provide greater flexibility for pubs and hospitality venues, allowing them to thrive.
John Lamont
Hospitality businesses in the Scottish borders are being squeezed by rising energy costs and wage and supply bills. Does the Minister think that this Labour Government’s jobs tax has helped or hindered the hospitality sector?
Kate Dearden
Business confidence depends on economic stability, and that is exactly what this Government are delivering: a stable economy where businesses can invest in growth. The hon. Member will have heard my commitment to the hospitality sector—both my personal investment and my absolute determination to work closely with the sector so that we can build stronger local economies with stronger high streets and thriving businesses. Businesses will see that stronger demand, especially when working people have more money to spend, and we are focused on building that stability for our local communities and for businesses to benefit too.
Lee Barron (Corby and East Northamptonshire) (Lab)
The Parliamentary Under-Secretary of State for Business and Trade (Blair McDougall)
It was worth waiting for. We are clear that Royal Mail’s service performance has not been good enough. I met the sector’s independent regulator Ofcom yesterday to stress the widespread concerns among hon. Members about service standards. My hon. Friend has deep experience in this area, and I welcome his engagement with the main delivery office in Corby, where Royal Mail tells me that it is recruiting nine new postal workers to support the timeliness and quality of its postal services.
Lee Barron
Quality of service in the Royal Mail has been at shocking levels over recent years. Considering that Royal Mail is legally obliged to deliver a universal service and keep our communities connected, will the Minister join me in calling on Royal Mail’s owners to honour their agreement, end the two-tier workforce, and bring new entrants’ terms and conditions up to the same standard as those of substantive Royal Mail employees? Fifty per cent of new entrants are leaving the service within a year, which is leading to a decimation in the quality of service.
Blair McDougall
My hon. Friend is correct to highlight that the service quality issues are linked directly to workers’ terms and conditions. It is precisely because we take that connection so seriously that the Secretary of State convened the meeting between the unions and the owners of Royal Mail. Ofcom made it clear in our meeting yesterday that it expects the plan for improvements in quality of service to be in place within days of an agreement being reached with the unions, and we will certainly hold Royal Mail to that.
Ian Roome (North Devon) (LD)
Does the Minister agree that by being asked to focus on parcels over letters, and having overtime hours for deliveries restricted, many hard-working postal workers will feel that public trust in Royal Mail is being undermined?
Blair McDougall
I discussed the prioritisation of parcels with Ofcom yesterday. It had previously investigated the matter, and it is fair to say that it has heard the widespread concern around the House. If Ofcom continues to be concerned, it will not hesitate to investigate again.
Jayne Kirkham (Truro and Falmouth) (Lab/Co-op)
The Secretary of State for Business and Trade (Peter Kyle)
In the face of global uncertainty, the Government are acting with boldness, creativity and urgency to back British business. We will soon publish our steel strategy to secure an internationally competitive, investible and sustainable future for British-made steel. We are making highly significant interventions on energy. The supercharger discount will increase next month, further cutting costs for around 500 of the most energy-intensive businesses. The British industrial competitiveness scheme will slash electricity bills for 7,000 businesses by up to 25% from 2027.
We are helping businesses to scale and grow, with the British Business Bank making the largest ever equity investments and UK Export Finance working with banks to generate £11 billion-worth of support for small businesses to export. We are opening new markets, with the India free trade arrangement now through both Houses of Parliament. Just last week, I was in Brussels to sign a new competition co-operation agreement. I expect my Department to match the dynamism of the best of British entrepreneurs, and I am proud to report that with this Labour Government, it is.
Jayne Kirkham
Soul Farm, which delivers organic and sustainable food, is an example of a co-operative business in my constituency that benefits its community. I also have the “Save the Stag” campaign in Ponsanooth, which is trying to take over and run the local pub, as has already been done at the Ship Inn at Portloe. Setting up or transitioning to a co-op model can be difficult. Will the Minister update me on what support the Government are providing to help new co-ops to start up and existing businesses to transition to employee ownership?
Peter Kyle
I am grateful for my hon. Friend’s important question. She will know that our manifesto committed to double the size of the co-op and mutual sector, and we are well on the way to doing so. She will also know that a consultation on this issue closed very recently. We are analysing the results and we will make further statements very soon.
Andrew Griffith (Arundel and South Downs) (Con)
The Government do not create jobs; business does. With unemployment rising, this is the last chance to ask the Secretary of State a question ahead of the start of April when a tsunami of business rate rises will hit. Shops and restaurants will see a 50% increase on average and the business rates of hotels will double. He and I both represent wonderful Sussex constituencies full of hospitality, high street and tourism businesses, but young people need those jobs. For their sake and for others, will he finally postpone his business rate rise?
Peter Kyle
I enjoy these exchanges with the shadow Secretary of State. I note that Reform’s self-styled shadow Secretary of State—or, as I call him, the shadowy Secretary of State—is not in his place, despite being just next door in the Tea Room a few minutes ago. I think that speaks volumes.
The shadow Secretary of State knows that the private sector has created 380,000 jobs under this Government. We will continue to grow the economy and the number of people in work, and make sure that people benefit from all the rights we are delivering, which are pro-business and pro-worker. He spent 14 years letting down Britain. Now he has spent 18 months talking it down.
Andrew Griffith
The Secretary of State forgets that I have not even been here for 14 years. Some days it feels like that, but I can assure him that it is not the case. There was no answer to that question, so let me try another. Does he agree that there is something pretty badly wrong with employment law in this country when Peter Mandelson, the friend of a convicted paedophile and leaker of classified Government documents, walks away with a £75,000 pay-off? The permanent secretary thinks that is good value for money. Will the Secretary of State review Labour’s policy of uncapping employment tribunal payouts for the highest earners?
Peter Kyle
As is so often the case when we have these exchanges, the shadow Secretary of State spends a lot of his time slagging off his own record in office. The Conservatives had 14 years to reform tribunal rights—they did not even touch it. They had 14 years to update workers’ rights and employment status in this country—they did not do it. The economy moved forward; they failed to move forward.
Turning to the issue of Peter Mandelson, I start by recognising that there are victims at the heart of this debate and the issues surrounding it. Those victims are in my mind today as I answer this question, and they have been all the way through. We will make sure that those victims get the justice they deserve. When it comes to the issues surrounding Peter Mandelson, there are multiple inquiries under way. Thames Valley police is leading on a criminal inquiry, and I will leave it at that.
Tracy Gilbert (Edinburgh North and Leith) (Lab)
The Parliamentary Under-Secretary of State for Business and Trade (Kate Dearden)
I thank my hon. Friend for her work in this area. The Government believe that trade unions are absolutely essential for tackling insecurity, inequality, discrimination, enforcement and low pay. We are providing a legal framework for businesses and unions to negotiate access to the workplace. We recognise that for the framework to effectively facilitate that access, it has to be supported. That is why we are consulting on this. Officials are reviewing those responses, and we will publish a response in due course.
Sir Ashley Fox (Bridgwater) (Con)
The Parliamentary Under-Secretary of State for Business and Trade (Blair McDougall)
Fuel duty is currently frozen. The key thing we can do to make sure we deal with this instability in energy prices is de-escalate in the region. I remind the hon. Member that his party has been calling for us to join the war.
Emma Foody (Cramlington and Killingworth) (Lab/Co-op)
Blair McDougall
My hon. Friend is absolutely right. Co-operatives create a really important sense of connection at a time when people feel disconnected, but co-ops and mutuals are also more resilient and more productive. That is why we have made the commitment she references. Our call for evidence has closed, and we are working on the proposals that will flow out of that. I really welcome the news this morning that the John Lewis bonus is returning and congratulate it on its results.
Ian Roome (North Devon) (LD)
Blair McDougall
Our small business strategy sets out the range of measures we are taking to support small businesses. That includes an increase of £4 billion in the finance available to businesses, so that they can invest to take advantage of those opportunities. We will also bring forward the strongest proposals on late payments, to improve cash flow to small businesses, as well as cutting red tape, so that they can take advantage of the opportunities the hon. Member describes.
Melanie Onn (Great Grimsby and Cleethorpes) (Lab)
The Minister for Trade (Chris Bryant)
I thank my hon. Friend for standing up for the business in her constituency, and she is absolutely right. The Trade Remedies Authority is investigating, as she knows, and I urge industry to participate in that, although I cannot comment on the precise details of the investigation because it might eventually come to my desk. Importantly, we need to make sure that dumping is not acceptable, because it makes it impossible for British businesses to prosper. We will do everything in our power to make sure that we use the remedies available to us to protect British businesses.
Tom Tugendhat (Tonbridge) (Con)
Peter Kyle
I am always grateful for invitations to drinks with the right hon. Gentleman. I might well ask him to come to Hove, though; I have been to his constituency a number of times over the years and it is about time he visited mine. When he is there, he will see a thriving hospitality sector, but one that does need support to meet its full potential. We accept that, which is why we have introduced so many support packages since we came into office. What the hospitality sector needs is what every other sector in the economy needs: a stable industrial strategy—
Mr Speaker
Order. Secretary of State, we have a lot of Back-Benchers who are desperate to get in and who want to hear from you.
Douglas McAllister (West Dunbartonshire) (Lab)
For years scotch whisky has faced sky-high import tariffs in India—as high as 150%. The Scotch Whisky Association has described the tariff cuts as “transformational”, and the Scotch whisky industry supports thousands of jobs in my constituency. Does the Minister agree that the increased bilateral trade with India is set to grow the Scottish economy by £190 million a year and is a massive win for the whisky industry, West Dunbartonshire and Scotland?
Chris Bryant
My hon. Friend is absolutely right, and I commend him for supporting his constituents. Equally importantly, there are many Scottish products in respect of which we need to ensure that British businesses can take the opportunities the India FTA affords, and build on those so that we can build strong British businesses. We also have geographical identification for Scotch whisky in Argentina. We need to build on these gains around the world.
Liz Jarvis (Eastleigh) (LD)
I recently had the pleasure of visiting Ionoptika, a fantastic local employer in Chandler’s Ford. It told me that UK small and medium-sized enterprises are being impacted by export licence turnaround times, which are taking up to six months for non-controlled goods. Will the Minister confirm when we will see a significant improvement in turnaround times?
Chris Bryant
I am happy to meet the hon. Member if she wants to take me through some of the specific issues in her constituency; I have done that for several hon. Members, and we had a roundtable last week to try to get the timelines down. Sometimes it is difficult. The median time in which we sort them out is 14 days, but if the hon. Member has problems, I am happy to tackle them with her.
Sally Jameson (Doncaster Central) (Lab/Co-op)
From Kingswood accountants to Automated Analytics and our young traders market, Doncaster is home to many businesses run by ambitious entrepreneurs. Will the Minister update the House on how Government support, such as the start-up loan scheme and the growth guarantee scheme, are helping young entrepreneurs and start-ups, and on what more we can do in this policy area?
Peter Kyle
I am grateful for my hon. Friend’s advocacy on this issue. Britain is the start-up capital of Europe. We are doubling down to ensure that once businesses are started up, they can scale up, stay and build their innovation here, which is why we are also the unicorn capital of Europe. We will double down and make sure that all that innovation, job creation and wealth creation remain here benefiting Britain, including my hon. Friend’s constituency.
Mr Gagan Mohindra (South West Hertfordshire) (Con)
Anchor Sound and Security, based in Kings Langley, explained to me how it is disincentivised to hire more employees due to rising compliance costs and regulatory uncertainty. What is the Minister doing to stop regulations stifling small business growth and destroying the strong relationships between employer and employees?
Peter Kyle
The Government have a commitment to reduce the regulatory burden on business by 25%. My Department led on almost £1 billion of regulatory reform for company reporting in just the first weeks of our taking office. The small business plan and strategy will deliver for small businesses, on top of the industrial strategy, of course, which is getting our economy facing the future and into solid growth for now and the future.
Lauren Edwards (Rochester and Strood) (Lab)
I add my voice to that of my hon. Friend the Member for Bexleyheath and Crayford (Daniel Francis) in calling on the Government to publish the review of market access for small breweries as soon as possible. I was delighted that Moot Brew brewery from Halling in my constituency produced the guest ale for the Strangers’ Bar in the House of Commons before Christmas. Will the Secretary of State support a national guest beer agreement policy, so that more fantastic local brewers such as Moot are represented in my local pubs?
Kate Dearden
My hon. Friend is a real champion for her local breweries, especially Moot Brew in Halling, which produces excellent beer—I know she visits regularly. We recognise the importance of independent breweries and pubs, and we are of course committed to ensuring that the sector remains diverse, competitive and rooted in local communities. We have reviewed the beer market to assess any barriers, and I will keep my hon. Friend updated.
Sir Iain Duncan Smith (Chingford and Woodford Green) (Con)
Small-volume business manufacturers in the automotive sector are having a terrible time at the moment. They rely on exports, and exports to the US are critical. Although I welcome the agreement the Government struck, costs are still four times what they were before President Trump introduced his tariffs, and those businesses are also being squeezed by business rates and national insurance at home. Will the Secretary of State make urgent representations to the Chancellor? The market is very delicate, and something must be done to reduce costs.
Peter Kyle
The right hon. Gentleman raises an issue that is close to my heart. The Government and I care deeply about the future of the automotive sector. Exports are incredibly important to it, but so is the security of supply chains. I have raised this issue not only with our US counterparts and other export markets but with the EU, to protect supply chains. My ministerial colleague chaired the Automotive Council just yesterday; we are listening, gauging and acting on behalf of the sector. Automotive production fell by 50% when the Conservatives were running the country. We are trying to get it back up to where it deserves to be.
Liam Byrne (Birmingham Hodge Hill and Solihull North) (Lab)
The Select Committee recently flagged that small businesses in our country now face pandemic-level pressures. In April, standing charges for energy are set to rise by 60%, with no price cap protection. Now, soaring oil and gas prices threaten to be the final straw for thousands of SMEs. Will the Secretary of State make an urgent assessment of the risk of soaring energy prices, and give a clear account of how we will keep the SMEs that keep this country running in business?
Blair McDougall
My right hon. Friend is absolutely right. We have taken action through the British industrial competitiveness scheme, which is a downpayment on exactly the sort of support he describes. We are constantly working on ways to cut costs for small businesses, and I am sure we will work with the Select Committee on that.
Tessa Munt (Wells and Mendip Hills) (LD)
Last time we were here for Business and Trade questions, I asked about exports of paraquat—the use of which is forbidden here—to other countries, and I live in hope that I will get an answer to that question. To update the ministerial team, Syngenta—the company that makes paraquat—put out a press release on 3 March to say that it would stop production this year. May I therefore expand my previous question to ensure that the response includes the export of pesticides and other products whose use is banned in the UK?
Perran Moon (Camborne and Redruth) (Lab)
The UK economy needs more and more critical minerals, and in Cornwall we have loads of them. Private capital has flown into the duchy on the back of the Labour Government’s investments of about £100 million through the national wealth fund and the Kernow industrial growth fund, but will the Minister update the House on Government plans to unlock more private investment in our critical minerals sector to unleash the Cornish Celtic tiger?
The Parliamentary Under-Secretary of State for Business and Trade (Chris McDonald)
My hon. Friend is right: Cornwall has loads of critical minerals. They will be beneficial in driving not only the UK economy but great businesses and export opportunities. As we have said before, we want companies to scale and grow in the UK, to be headquartered and listed in the UK, and to provide great jobs in the UK. That is why I am working with my hon. Friend and his Cornish Labour colleagues, and with the industry and capital markets in the UK, to corral capital into Cornish critical minerals.
Martin Vickers (Brigg and Immingham) (Con)
Since part of Grimsby falls in my constituency, I join my Member of Parliament, the hon. Member for Great Grimsby and Cleethorpes (Melanie Onn), in celebrating Great Grimsby Day. I recently attended a meeting with the hon. Member for Scunthorpe (Sir Nicholas Dakin) and a group of potential investors in the steel industry, who I know have made approaches to the Secretary of State. Can he give me an assurance that all potential private sector investments in the industry will be given serious consideration?
Peter Kyle
I congratulate the hon. Member on Great Grimsby Day, and I can give him that assurance.
Alison Taylor (Paisley and Renfrewshire North) (Lab)
I thank the Minister for speaking to me about the poor postal service in Dargavel Village in Bishopton. I know he is working hard to resolve matters and answer questions and had meetings yesterday, and I thank him for that. However, as he will appreciate, this matter is of particular importance in Scotland due to the elections on 7 May, because postal votes will be issued soon. In Scotland we have an NHS with significant waiting lists, and we cannot have people missing medical appointments, so on behalf of residents of Bishopton in particular, may I stress the urgency of this matter?
Blair McDougall
My office manager lives in Dargavel Village, so I have a person incentive to ensure that the service improves in the area my hon. Friend represents. We spoke about it yesterday; we have called in Royal Mail, we have brought together unions and management and we had a meeting yesterday with Ofcom to stress that things have to improve. Specific meetings are taking place on postal votes in Scotland, and we have sought assurances that they will not be impacted by the problems with the quality of service.
Dr Al Pinkerton (Surrey Heath) (LD)
Yesterday I met representatives of the British Chambers of Commerce, who relayed the profound concerns of the UK automative industry that it might be excluded from the European Union’s proposed industrial accelerator Act. Nissan and Honda have already broken cover to say that their futures may be uncertain unless they are included in the “made in Europe” rules. What is the Secretary of State doing, with his Front-Bench team and across Government, to ensure that the UK automotive sector is not placed at a competitive disadvantage as a consequence of those measures?
Peter Kyle
The hon. Member’s question is incredibly important. He will know that my ministerial team and I have been very active on this issue. Just a couple of weeks ago in Brussels I raised it directly with Commissioners. He will also know that in the proposed Act, which has not yet been introduced, there are potential challenges for the automotive sector. We are working with our EU colleagues to make sure that voices of the business community are being heard loud and clear and that the automotive sector—in which 86% of the components assembled in this country come from EU countries—is respected, valued, and secure in the future.
Brian Leishman (Alloa and Grangemouth) (Lab)
The sudden shift in steel import policy has created uncertainty for firms that have invested heavily in expanding their operations based on previously stable trading conditions. Will the Secretary of State commit to working with affected businesses in Scotland, including Central Rebar in Alloa, and provide clarity to prevent further disruption and to ensure that companies vital to the Scottish industrial base are not placed at a competitive disadvantage?
Chris McDonald
The Government are incredibly concerned about the gradual erosion of UK domestic steel production compared with imports. I ask my hon. Friend to wait a very short time until the steel strategy is published, and after that he might like a further discussion with me.
Max Wilkinson (Cheltenham) (LD)
High streets are a key concern for us all in this House. On the Promenade in Cheltenham we have Cavendish House, which was a cherished retail centre for 200 years. [Interruption.] The hon. Member for Rhondda and Ogmore (Chris Bryant) remembers it. Now it is empty; Mike Ashley’s Sports Direct left and now we have a big, empty building owned by Canada Life. Does the Minister agree that the big pension and investment companies need to pay more respect to our high streets and bring forward planning applications to redevelop and regenerate as soon as they possibly can? We should not be left waiting for as long as we have been.
Blair McDougall
My hon. Friend the Member for Halifax (Kate Dearden) mentioned a moment ago that we are working on a new high street strategy, which will seek to deal with some of the issues the hon. Member mentioned. We want investors to step up, but we also have a responsibility, through planning reform, to make it easier to regenerate the types of areas he described.
Euan Stainbank (Falkirk) (Lab)
Given the global energy crisis, manufacturers reliant on gas will struggle with the recent spikes in energy costs. Will the Secretary of State confirm whether his Department is considering a transitional dual fuel discount, alongside the British industrial competitiveness scheme, for industries that will continue to use gas for the foreseeable future?
Peter Kyle
My hon. Friend will know that the impact of BICS is essential, and it will be fundamental in getting growth into the economy and sustainable businesses into the future. We are looking carefully at how the learning from that can be applied in other areas.