(1 day, 9 hours ago)
Commons ChamberRead Hansard Text Read Debate Ministerial Extracts
Aphra Brandreth (Chester South and Eddisbury) (Con)
Joe Robertson (Isle of Wight East) (Con)
The Secretary of State for Business, Innovation, Science and Trade (Jonathan Reynolds)
Everything my Department does—from industrial strategy, small business support, trade and exports to innovation and science—has the creation of good jobs at the heart of it. In the UK, there are challenges around jobs for young people, no doubt, but youth unemployment has shown to be outperforming that of comparable economies such as France and Italy, and the Government have a further agenda in this area.
Aphra Brandreth
The wonderful family-run Ice Cream Farm in Tattenhall is one of our region’s largest youth employers, giving many young people their very first job, but the current rules limit children below school-leaving age to just two hours’ work on Sundays, even during school holidays. For businesses in rural areas, where parents often have to drive considerable distances to get their kids to work, this simply is not practical. Will the Secretary of State review the restriction while maintaining important safeguards, so that businesses such as the Ice Cream Farm can offer more young people vital first work experience?
Jonathan Reynolds
I appreciate the hon. Lady’s question. This subject has come up with me before, both on a constituency basis and as the Secretary of State. There is the potential to look at the regulations in this area. I do not think it is about exploitation; it is about providing reasonable opportunities that young people desire. I promise that I will go away and look at this issue, and write to the hon. Lady with further information.
Joe Robertson
Jobs and opportunities for young people have dried up over the last two years because the Government have made it more expensive to employ them. On the Isle of Wight, this has compounded our pre-existing structural problems. Will the Government now do the right thing and halve national insurance contributions for employing under-25s, to help grow more opportunities and jobs for young people?
Jonathan Reynolds
No one in this Government is complacent about the challenges of youth unemployment, but there has been no spike in the figures since 2024. The rise has been consistent since 2022, in an entirely linear fashion. The hon. Gentleman will know that employers do not pay national insurance for under-21s, or for apprentices under the age of 25—it is important to be clear about how the system works. On the challenges in his constituency, there is a further agenda coming in this area through the Milburn review. It has an exciting set of proposals that I believe employers in the hon. Gentleman’s area will get behind, if we make them a substantial offer.
Amanda Hack (North West Leicestershire) (Lab)
It was my pleasure to host the British Retail Consortium in Parliament for its announcement of Opening Shift, a partnership between Government and 40 retailers, providing over 11,000 work placements to help support young people who are not in education, training or employment into work. Could the Secretary of State update me on what progress has been made on getting other retailers involved, but also on how we could extend Opening Shift to ensure that semi-rural constituencies like mine can benefit?
Jonathan Reynolds
I commend my hon. Friend for the work she is doing. One of my first jobs as a young person was in Foster Menswear in Sunderland city centre—my performance was mixed, to be honest, but it was an important set of skills to learn. The retail sector is known for the opportunities it provides for young people. My hon. Friend will know that there is already a set of proposals from the Government on not just national insurance, but incentives to take young people into employment if they have been out of work for a period of time, or into apprenticeships if they are in that age cohort. There is more we can do in this area, but there is an offer there and she is doing the right thing by highlighting that to businesses in her constituency.
Brian Leishman (Alloa and Grangemouth) (Lab)
Syngenta in Grangemouth recently announced 377 redundancies. Along with the recent closures of Versalis, Fujifilm and, of course, the Grangemouth oil refinery, this means a real reduction in positive destinations for local young people. What can the UK Government do to accelerate the readiness of sites in Grangemouth in order to unlock the £200 million from the National Wealth Fund, so that we can build Grangemouth and Scotland’s industrial future?
Jonathan Reynolds
Obviously, the immediate activity is supporting the affected employees throughout the consultation period. My hon. Friend will know that the use of the powers of Government—the powers of the state —to make sites available quickly for inward investment to the UK has always been a priority of mine. He is right to say that the National Wealth Fund has already made a nominal allocation to Grangemouth. Other programmes in the industrial strategy, such as the strategic sites accelerator, are all about trying to improve the pace at which we can take advantage of the investment opportunities the UK is presented with. I promise him that I will remain in close consultation with him, and of course with the Secretary of State for Energy and Net Zero.
Madam Deputy Speaker (Ms Nusrat Ghani)
I call the acting shadow Secretary of State.
Julia Lopez (Hornchurch and Upminster) (Con)
It is British Beauty Week—I can see you have been celebrating, Madam Deputy Speaker, and I am sure the Secretary of State has been, too—but it is tough out there for our salons. The industry lost one in five employees last year, which is the largest loss of any job type in the UK. Many will have been young people starting their careers in the industry, and few salons can afford to employ and train them because they are getting hammered by the jobs tax, soaring business rates and higher utility bills. What hope is the Prime Minister offering them?
Jonathan Reynolds
I notice the hon. Lady did not go first on British Beauty Week to me, but to you, Madam Deputy Speaker, and that is fair. British Beauty Week is an important moment, not least to celebrate the contribution of the sector and the, I believe, over 5,000 new apprentices starting in the sector in every corner of the UK this year.
The hon. Lady in effect asks what the big economic story in the UK is, and I would say that the hope comes from the fact that, despite the challenges that exist in the global economy around the world, the economy under this Government is clearly performing more strongly than it did for 14 years under the Tories. My proof points for that are that wages are rising faster than prices and, crucially, that GDP is rising not just overall, but per head, as opposed to the modest increases under the Conservatives, which were really from population increases and large-scale immigration. An economy performing more strongly is in the interests of every business. On the opportunities for young people, there are the tax and fiscal incentives I have mentioned, with the further agenda coming through the Milburn review.
Madam Deputy Speaker (Ms Nusrat Ghani)
I call the Liberal Democrat spokesperson.
Sarah Olney (Richmond Park) (LD)
Youth unemployment stands at 15%, and in London that figure is 25%, while 700,000 graduates are out of work. Retail and hospitality are cornerstones of the everyday economy, providing vital employment, driving local growth and creating thriving town centres. However, average employment costs have increased by 11% since Labour took office, which disproportionately affects sectors that traditionally offer entry level jobs. Policy decisions taken by this Government are making it impossibly hard for businesses to provide young people with their first foot on the career ladder. Will the Secretary of State acknowledge the damage being done to young people, and will Ministers ensure that, as they implement secondary legislation under the Employment Rights Act 2025, they balance the rights of employees fairly with the needs of businesses to provide jobs for young people?
Jonathan Reynolds
The Lib Dem spokesperson raises a few issues, but I would say first that doing a job like this, or any job in government, means acknowledging the trade-offs. The simple truth is that the things we will be talking about during this session and that everyone in the House wants to see funded were not funded in the plans that we inherited. Yes, it is always difficult to raise the tax burden on anyone in the UK, but priorities promised to the British people—for this successor Department, the money for the Port Talbot steelworks transformation and the compensation for the post office sub-postmasters—were not funded, so the Chancellor at the time did have to raise or find the money to fulfil the existing pledges that had been made.
However, I promise the hon. Member that the aggregate impact or the balance for business—whether it is on employment rights or on taxation—is something this Department always fights very hard for in Government, because we are aware that the only way to fulfil the true ambitions of the British people is with an economy that is performing strongly, employing more people, and giving them hope and opportunity for the future. I do believe that this new Department, with the extra things that have come into it, has a genuinely exciting opportunity to bring a more coherent story to these interventions from Government, and that is the best way to a stronger economy.
Hannah Spencer (Gorton and Denton) (Green)
The Secretary of State for Business, Innovation, Science and Trade (Jonathan Reynolds)
I welcome this question from my constituency neighbour, and I am grateful to her for raising it. The Prime Minister and I have been clear that Jodrell Bank has a secure future. Just to be clear with the House about what is happening, the primary radio astronomy project will move from the e-MERLIN radio telescope to the Square Kilometre Array observatory in March 2028. That was a science-based decision, but we are exploring the long-term options for the sustainability of Jodrell Bank.
Hannah Spencer
Funding for the e-MERLIN radio telescope network is due to end in 2028, putting Jodrell Bank’s future at risk. People across Gorton and Denton have made clear to me the vital role the observatory plays in opening science up to people of all ages. Many of us went there on school trips as kids. The Prime Minister assured us that his Government will find a funding solution, so will the Secretary of State explain how the Government intend to honour that heartfelt commitment and secure Jodrell Bank’s long-term future as an active sovereign scientific facility?
Jonathan Reynolds
I am grateful to the hon. Lady for raising this issue. I recognise the strength of feeling that she talked about in her question. She will know that, on a clear day, you can see Jodrell Bank from Matley Lane in Tameside and it is a wonderful sight. It is important, given that we have a very significant research and development budget in the UK, that scientific decisions are made on the basis of the science, but that still does not mean there is no future for Jodrell Bank as an asset. That is consistent with making sure that we are making science-based decisions on the prioritisation of that funding. I met the University of Manchester just a few days ago on this issue, and the local MPs for the area have been incredibly supportive in finding a solution. I hope to have more to say on that soon.
Several hon. Members rose—
Madam Deputy Speaker (Ms Nusrat Ghani)
Order. Back-Bench MPs can only come in if the question is about Jodrell Bank observatory. [Interruption.] I call the shadow Minister.
Peter Fortune (Bromley and Biggin Hill) (Con)
Thank you, Madam Deputy Speaker—the renationalisation of the railways is not working. [Laughter.]
The Drayson partitions exist to ensure that costs which the UK must meet and cannot change, such as international subscriptions that give us access to scientific facilities, are treated separately to costs that we have control over, such as grants funding. With the Science and Technology Facilities Council given a flat cash settlement, but with international subscriptions rising with inflation, the STFC now has less money to spend on actual research, leading to world-leading scientific research being dropped and to the closure of facilities such as Jodrell Bank. Can I ask the Secretary of State who made the decision to disregard the Drayson partitions?
Jonathan Reynolds
It is good to see the shadow Minister and I thank him for his question.
Let me be clear with the House. If we take the UKRI budget in aggregate for the spending review period, it is nearly £39 billion. If we take the overall R&D budget for the UK in the spending review period, it is £86 billion —record levels of funding making a difference. It is absolutely crucial within that that we make sure the decisions on the prioritisation of funding are science-based. The issue the hon. Gentleman identifies, the tension between research projects and subscription projects and their funding, is one I am familiar with, and he is making a serious point that has to be explored. As for who made the decision, the process runs through, I think, 30 different meetings of the research council. It has a process where submissions are taken from a very wide range of areas. There will always be more people wanting more funding than is available, no matter how big I make the spending pot, but as a House we should be clear that we want these decisions to be made primarily on a scientific basis.
Adam Thompson (Erewash) (Lab)
The Minister for Science, Innovation and Investment (Chris McDonald)
As this is my first run-out in my new brief, I thought it might be nice to just take a moment to recognise the work of Lord Vallance as Science Minister and Lord Stockwood as Investment Minister, and thank them very much for their work.
As we have just heard from the Secretary of State, the Government are making record investments in science and technology to keep the UK at the forefront of global research and innovation. We are committing £86 billion to R&D between 2026-27 and 2029-30, including £38.6 billion for UK research and innovation. These investments are translating into jobs, innovation and economic opportunity across the UK, including in the east midlands.
Adam Thompson
I welcome the new Minister to his new place. Despite the Government’s significant funding increases to science generally, the Science and Technology Facilities Council is facing significant cost pressures. I met recently with some STFC-funded former colleagues who fear an exodus of professional talent from the UK because of those pressures. Given the importance of STFC-funded facilities in the UK’s scientific capability, will the Minister set out what he is doing to ensure that the council’s financial position is put on a sustainable footing, without undermining the long-term pipeline of researchers and the UK’s ability to participate in major international science programmes?
Chris McDonald
It is important to recognise that the changes have an impact on the staff that work for the STFC. I have been in the unfortunate position of working in a company undertaking such a restructure—and of having to do such restructures in the past—and I appreciate how difficult that is for staff. I have spoken to the executive chair of STFC, and at the core of the programme —exactly as my hon. Friend has described—is a desire to get STFC into a position where it has appropriate financial management, while also increasing productivity and modernising in response to new technology. The Government are supporting that with an increase in STFC’s funding to £842 million by 2029-30, from the £835 million of 2025-26.
Victoria Collins (Harpenden and Berkhamsted) (LD)
Harpenden is home to Rothamsted Research and our universities lead the world, yet too much of that brilliance never leaves the lab. Will the Minister look at Lib Dem proposals to bring in a standard national framework for spin-out IP, and quintuple proof-of-concept funding, so Britain’s discoveries scale here and not abroad?
Chris McDonald
I agree with the hon. Member’s point about the need for Britain’s discoveries to be scaled at home rather than abroad. I am taking an end-to-end approach on that, starting with scientific discovery and hopefully ending with large companies listed on the London stock exchange, supporting businesses throughout that process. UKRI and Innovate UK are doing great work in that area, supported by the increased role of the British Business Bank.
Madam Deputy Speaker (Ms Nusrat Ghani)
I call the Chair of the Science, Innovation and Technology Committee.
Dame Chi Onwurah (Newcastle upon Tyne Central and West) (Lab)
I welcome the Minister to his new role as well as this Government’s emphasis on driving growth through innovation in every region of our country, as recommended by my Committee’s recent report, “Flying Blind”. It was called that because it identified a lack of data and information about the factors that drive growth and how to measure success in our regions and across clusters. The report called for a dashboard. Will the Minister tell me what progress has been made on that dashboard, and has he looked at the Cambridge x Manchester Partnership baseline report, which identified a number of indicators, including company stock, funded count, and disclosed funding by employee band?
Chris McDonald
My hon. Friend and I share a great confidence in data and a desire to make decisions based on it. With the regional disparities that she is describing, I have looked at the data and there is a clear distinction between the proportion of UKRI funding and UKRI spin-outs, for instance, and then the ability of those companies to attract investment. In fact, the level of funding they received is based on their proximity to London. I share her concern, we are looking at the data on that, and I am happy to work with her and the Committee on how we ensure that regional funding is more appropriately spread.
Alison Bennett (Mid Sussex) (LD)
Universal Quantum, born out of the University of Sussex, is based in my constituency. It is developing a unique trapped-ion modular technology for quantum computing at scale. It received $77 million from the German Government in 2022, and last week secured $100 million of Series A funding from investors, including the Singaporean Government. However, it has been unsuccessful in getting any funding from our own Government. Can the Minister explain how that tallies with their Department’s commitment to investing in exceptional home-grown companies?
Chris McDonald
The situation that the hon. Member described about the loss of UK quantum companies, largely under the previous Government, is exactly why my predecessor was determined to set up the ProQure programme, to ensure that the UK is leading the procurement of quantum computing and enabling the growth of UK businesses to do that. In March 2026, the Government announced a landmark commitment of up to £2 billion for the next stage of the national programme, and our ambition is to see UK quantum companies scale and stay in the UK.
Dr Peter Prinsley (Bury St Edmunds and Stowmarket) (Lab)
The Minister for the Future of Work (Kate Dearden)
My hon. Friend’s question addresses a key aspect of our recent consultations, which proposed a duty for online marketplaces to take due care to identify, prevent and remove unsafe goods from their sites. The consultation package also proposed a modernised enforcement toolkit, and my intention is that future regulations will set out strong new duties on online marketplaces, backed by appropriate sanctions.
Dr Prinsley
Residents of Bury St Edmunds and Stowmarket, like millions of us across the country, increasingly rely on online marketplaces for everyday purchases. However, the consumer magazine Which? continues to uncover dangerous products being sold on those platforms. Will the Minister ensure that forthcoming regulations place a clear legal duty on online marketplaces to identify and remove unsafe products, backed by meaningful penalties for those that fail to protect consumers?
Kate Dearden
I thank my hon. Friend for bringing this important issue to the House today, reflecting the changes in preferences of both his constituents and those across the country in how they buy products online and interact with online marketplaces. I also want to take this opportunity to thank Which? for the brilliant work it does in this space. Our recent consultations on modernising the product safety framework included proposals for clear duties on online marketplaces, including a clear duty to take due care to identify, prevent and remove unsafe goods from their sites. We also proposed a modernised enforcement toolkit, including civil monetary penalties to complement the existing criminal sanctions; fines would be set proportionally to risk and respond to an offence appropriately. We are also considering bespoke enforcement measures to ensure that online and international supply chain actors can be effectively addressed. We will respond to these consultations in due course, and I thank my hon. Friend for his engagement in this space.
Vikki Slade (Mid Dorset and North Poole) (LD)
Countless constituents have written to me about their concerns over the proliferation of high-powered e-bikes and e-scooters and conversion kits, many of which are bought online. I have been liaising with Currys, which is being as proactive as it can in making it clear to people through its point-of-sale material what the law is when people buy them in a shop; online, however, it is a wild west. Given the failures in the police cracking down on these vehicles where they are not permitted, will the Government consider limiting their online sales using the Product Regulation and Metrology Act 2025?
Kate Dearden
I thank the hon. Lady for raising this issue. I know that she and colleagues across the House have campaigned on this, and I share their concerns. In our recent consultation on reforming the product safety framework, we sought views on additional measures and responsibilities that are needed to improve the safety of products sold online, which included lithium-ion batteries and their use in consumer goods such as e-bikes. I would be happy to keep the hon. Lady updated on the progress on this work when we respond in due course.
Patrick Hurley (Southport) (Lab)
The Secretary of State for Business, Innovation, Science and Trade (Jonathan Reynolds)
As we have heard, this new Department brings together a range of essential policy areas to back industries, technologies and jobs that will power future growth. For me, sustained economic growth can come only through greater private investment and private capital. The business investment figures for the UK are encouraging, with our industrial strategy using the policy tools at its disposal to attract more than £390 billion of private investment commitments since it came into force.
Patrick Hurley
I welcome the GDP figures that have been published this morning, but if we are serious about growth, we need to ramp up our manufacturing capacity and ensure that GDP growth is matched with jobs growth. Will the Secretary of State therefore consider setting an ambition of 1 million new manufacturing jobs in the next decade, putting reindustrialisation at the heart of the Government’s growth strategy?
Jonathan Reynolds
I warmly welcome my hon. Friend’s question on reindustrialisation, which is an essential part of the Government’s programme. Backing reindustrialisation does not mean that we do not recognise the tremendous contribution of services, and it is not nostalgia—it is about looking at the brilliant innovation that we have in the UK and seeing it scaled up. Doing so requires policy intervention, and I am extremely pleased that the British industrial competitiveness scheme will shortly come online, bringing down our energy and electricity prices for 10,000 British manufacturers and ending the situation we inherited from the Tories where we had the highest energy prices of any industrialised major nation. We do have to look at targets, and I will look at the one my hon. Friend has proposed, but I also think there are other areas we have to include in that to get the holistic impact that we need.
Max Wilkinson (Cheltenham) (LD)
The Golden Valley development in west Cheltenham enjoys the support of this Government—I can see the Minister smiling, because I have spoken to him about it a lot—and enjoyed the support of the previous Government, too. It is driven locally by the local council, and supported by businesses like the developer, HBD. It will generate 12,000 jobs and close to £1 billion of investment supporting our cyber and tech industry, and will crucially support the work of GCHQ. However, to really unlock the success of the development, we need to be given designated area status so that the local council can then start to reinvest in the local business community, as it has done so far at the development. Will the Secretary of State have a word with the Chancellor, ahead of the Budget, to see if we can bring about success in that bid?
Jonathan Reynolds
Everything the hon. Gentleman has said sounds hugely attractive to me. He has clearly already engaged with Government to some degree, but I will follow up on his question and see what we can do to support his local area.
Mark Garnier (Wyre Forest) (Con)
May I start by thanking the Secretary of State for his very measured and intelligent thoughts about the GDP growth rate? I lament that some others in his Government seem almost complacent about the International Monetary Fund’s increasing GDP growth expectations from 1% to just 1.3%, putting us second in the G7. Does that not show a certain lack of reality in the Government? What we should be looking for is GDP growth of more like 2.5%. The G20 is averaging 3.1%, and we are 14th in the G20. Does the Secretary of State recognise that over-regulating, over-taxing and charging too much for energy is holding back our great entrepreneurs and businesses, who could be delivering the GDP growth that this country really needs?
Jonathan Reynolds
I believe that the figures show a level of resilience in an extraordinarily difficult global climate. In terms of our ambitions, I am pleased that we are turning around the underperformance of the 14 years of Conservative government, but I want more, and I am ambitious and hungry for that.
In order to achieve that, the Government have already committed to certain interventions. Going back to my previous point, we inherited the highest industrial electricity prices of any developed nation, but we are bringing those down by a quarter for 10,000 British businesses. I want more progress in that space, and I will be speaking to the Chancellor about further work on that agenda.
We are bringing down the costs for business, giving them new markets through the success we have had with our trade deals, and ensuring that the regulatory system supports those objectives. All of that contributes to what I believe is a set of tremendous opportunities for the UK because of the assets that we have. We should be ambitious for the future.
Cat Eccles (Stourbridge) (Lab)
The Parliamentary Under-Secretary of State for Business, Innovation, Science and Trade (Blair McDougall)
The Government are determined to tackle the scourge of late payments, which causes the closure of 14,000 businesses and costs the UK economy almost £11 billion a year. The Commercial Payments Bill currently progressing through Parliament will give the UK the strongest laws in the G7 and represents the most significant reform of payment practices in over 25 years. The Bill will ensure that small businesses spend more time on growing, investing and creating jobs and less time on chasing late payments.
Cat Eccles
Late payment destroys thousands of viable small firms each year, and poor practices have seen large firms using small suppliers as a free overdraft. In my constituency, the impact is felt by manufacturers and fabricators, with local metalwork and transport supply sectors facing the longest payment delays in the UK. How is the Minister ensuring that there is a change in payment culture and lifting that burden from small businesses?
Blair McDougall
My hon. Friend is absolutely right; I know from personal experience how frustrating it is to have large firms use small firms as a source of free finance. The Commercial Payments Bill will clamp down on late payments by introducing maximum payment terms, providing stronger rights to interest and strengthening the powers of the Small Business Commissioner. She is right about the need for a culture change. The message from Government is that this legislation and this change is coming, and large companies should get their payment practices in order right now.
Jim Shannon (Strangford) (DUP)
Rising business rates, wages going up, energy prices rising, national insurance contributions—all those things have an impact on small businesses. My small businesses talk to me about the very issue that the hon. Lady referred to: those who do not pay on time. What can be done to help firms who are not getting the money from the suppliers? Is there somewhere that they can refer to for help?
Blair McDougall
The hon. Gentleman is right to raise the issue. I know it is a huge problem in Northern Ireland, as it is in the rest of the UK. One of the great problems with the current system is that a small business has to be aggressive towards its own customers to chase those late payments. The Commercial Payments Bill will turn that power relationship on its head, and people will expect to be paid on time. If they are not, there will be mandatory interest on that.
Bill Esterson (Sefton Central) (Lab)
The Minister for the Future of Work (Kate Dearden)
I know all too well the devastating impact that rogue traders can have on constituents, having had similar discussions in my own constituency and with many colleagues across the House too. That is why my Department supported the independent furniture and home improvement ombudsman’s new approved code and payment protection scheme, backed by independent dispute resolution, to help hard-working families identify trusted traders and ensure that people can spend their money with greater confidence and security.
We remain committed to supporting the Competition and Markets Authority and local trading standards in their ability to impose penalties via the courts. This Labour Government are delivering everyday fixes to protect families and give them room to breathe.
Madam Deputy Speaker (Ms Nusrat Ghani)
Order. We need to move a bit faster, so questions and answers must be shorter.
Bill Esterson
My constituent Joanne paid £11,000 for a new kitchen. Her house was left in a terrible state and she was unable to get the builder to return to rectify the substandard work. It also turned out that he was associated with 21 other companies mostly in the building trade, many of which have been dissolved. The Minister mentioned quite rightly the new code for the home improvement sector, which will give confidence to consumers and support to reputable traders. Is more not needed to go after the cowboy builders to ensure that constituents such as Joanne can get the remedy that they so need?
Kate Dearden
I am sorry about that incident with my hon. Friend’s constituent. The damaging impact that that can have, making people who have saved their entire lives for home improvements feel robbed and unsafe in their homes, is dreadful. That is why we are taking action, starting with the backing of the furniture and home improvement ombudsman scheme. I am not complacent in this space: we are determined to ensure that customers know what protections are available and that they can use them with confidence. I look forward to working further in this area.
Sir Christopher Chope (Christchurch) (Con)
Rogue traders operate with impunity in the park homes sector, yet the Government have refused to supply sufficient money to National Trading Standards to enable it to carry out a national investigation and bring those rogues to book. What is the Minister going to do about it?
Kate Dearden
Regrettably, trading standards has faced a real-terms funding cut of more than 50% since 2010, under the previous Government. The system is therefore under severe strain. I back the incredible work that it does across the country and know how much support it needs. That is why we are committed to backing it and those longer-terms plans to overhaul the wider consumer protection landscape and particularly trading standards to help it continue cracking on with its brilliant job.
Caroline Voaden (South Devon) (LD)
The Minister for Artificial Intelligence (Kanishka Narayan)
We work closely with the Department for Environment, Food and Rural Affairs, the Department for Energy Security and Net Zero and Departments across Government to ensure that critical infrastructure developments are sustainable for local resource capacity. The planning system takes into account a number of those questions and ought to account for the long-term implications for water and wider resource supply. We have specifically designed our AI growth zones to be investments in areas where there is sufficient energy capacity and where infrastructure can be enhanced.
Caroline Voaden
Water UK says data centres in England are using about 6.6 million litres of drinking water a day and that is set to triple by 2030. Meanwhile, households in Devon and Cornwall have been under a hosepipe ban since August and businesses are now facing water restrictions. Given the dry weather that we have had and the fact there is probably a lot more to come, have the Government considered legislating to require new data centres to operate with low water dependency, particularly when they are being built in the south of England where water shortages will become even more pressing?
Kanishka Narayan
Let me say three things. First, it is important to be clear on the data. The estimates that we have at the moment suggest data centres account for approximately 0.2% of non-household water usage in England. Secondly, when people build data centres here, we want them to build in the light of our values and what local communities need. That, in turn, means investing, alongside technology infrastructure, in clean energy infrastructure and in wider resourcing locally. Thirdly, I am always keen on ideas for how further improvements and demand flexibility for both energy and water resources can be supported by data centres. I will continue to look at the ideas the hon. Lady has proposed.
Neil Duncan-Jordan (Poole) (Lab)
There are environmental consequences caused by the emergence of data centres. There are also overblown claims as to their ability to create large numbers of jobs. The biggest concern, however, is in whose interests they will operate. What steps are the Government taking to ensure that AI works for the people, not just for big tech companies?
Kanishka Narayan
I thank my hon. Friend, whose question is one we have discussed at length. The central point is that in the last wave of technology, we built neither public trust nor British technology. In this wave of AI, we are focused on building both trust and technology so we can have sovereign control over what we are building here.
Richard Quigley (Isle of Wight West) (Lab)
The Parliamentary Under-Secretary of State for Business, Innovation, Science and Trade (Blair McDougall)
The industrial strategy sets out the Government’s long-term approach to boosting investment, productivity and growth, building on the UK’s industrial strengths, including advanced manufacturing. Through the complementary advanced manufacturing sector plan, backed by £4.3 billion of Government funding, we are helping manufacturers to grow and thrive.
Richard Quigley
May I say how shocked I am that the hon. Member for Hornchurch and Upminster (Julia Lopez) suggested that your appearance needed any augmentation, Madam Deputy Speaker? On the Isle of Wight, we are incredibly proud of our advanced manufacturing sector and, for an area of its size, the island has one of the biggest concentrations of advanced manufacturing and high-tech engineering jobs in the country. Employers on my side of the island are racing to employ under 25s. We always want to do more, so will the Minister set out how the Government’s drive to buy British, alongside their renewed commitment to strengthening our defence capabilities, will create new opportunities for island manufacturers to secure contracts, invest in growth and create the next generation of skilled jobs on the Isle of Wight?
Blair McDougall
My hon. Friend is absolutely right to highlight the huge opportunities for manufacturers on the Isle of Wight. We are determined to use procurement strategically, as other nations do, to back British industry. It is particularly important with shipbuilding. We are expanding the role of the National Shipbuilding Office to oversee that. The renewed investment in defence and shipbuilding will create opportunities across the maritime supply chain, including for the Wight Shipyard Co. and other island manufacturers.
Paula Barker (Liverpool Wavertree) (Lab)
The Minister for the Future of Work (Kate Dearden)
The Government are clear that Royal Mail’s quality of service has been unacceptable for too long. Royal Mail published a plan to improve reliability, and I have been frank in my conversations with the CEO that it now needs to increase the pace of improvement and deliver on that plan. I understand that there have been operational challenges in the Lark Lane and Liverpool North delivery offices, and I urge Royal Mail to improve its services for local people. It must do better.
Paula Barker
Royal Mail has failed to meet Ofcom delivery targets for first-class mail since 2017, yet over that time, Ofcom has allowed the price of a first-class stamp to increase by 166% and has relaxed targets. Royal Mail’s continual failure affects the most vulnerable groups in our society—those who receive letters about hospital appointments, court dates or social security decisions. These are arriving late. Much of the bulk mail lies outside the universal service obligation. Will the Government review both that and Ofcom’s remit, to ensure that Royal Mail provides a timely, affordable service for all post—one that does not prioritise parcels—and that failure is not rewarded?
Kate Dearden
I thank my hon. Friend for raising this issue in the House on behalf of her constituents and constituents across the country. Royal Mail’s service must improve quickly. Customers, particularly the most vulnerable, are being let down, and delayed letters, such as legal correspondence and hospital appointment letters, can have serious consequences. When people are paying more for postal services, they rightly expect reliable and timely delivery. The Government have been clear that Ofcom should carefully consider the role of bulk mail and whether additional regulatory measures are needed to secure high standards of reliability for all postal customers. Much of the correspondence that people rely on falls outside the current quality-of-service targets. We will continue to press for a reliable postal service that meets the needs of all users.
Mike Martin (Tunbridge Wells) (LD)
My question relates to the Tonbridge and Cranbrook delivery offices, which I know also deliver to your constituency, Madam Deputy Speaker. I ran a survey recently: 85% of people have experienced delays, 25% have missed a deadline or an appointment and, extraordinarily, 20% have experienced a three-week gap between postal deliveries. That is obviously totally unacceptable. Have the Government had conversations with Royal Mail specifically about the TN postcodes?
Kate Dearden
I thank the hon. Member for raising this issue on behalf of his constituents, and I share his concerns; I know from my own inbox, as a constituency MP, the challenges that arise when people do not receive their post on time and there are significant delays. I have been frank in my conversations with the CEO of Royal Mail that its service has been unacceptable for too long and that the pace of improvement must improve. The public and his constituents deserve a reliable postal service, and they are right to expect better. If he wants to share those data with me and with Royal Mail, and add to that pressure, I would welcome that.
Noah Law (St Austell and Newquay) (Lab)
The Parliamentary Under-Secretary of State for Business, Innovation, Science and Trade (Blair McDougall)
Place is central to the industrial strategy. We have been working with Plymouth and the south-west peninsula to support the development of distinctive nationally significant clusters. I visited Plymouth and Cornwall earlier this year to meet the freeport, understand the opportunities around marine autonomy and see for myself Cornwall’s incredible critical mineral potential.
Noah Law
As you know, Madam Deputy Speaker, in Cornwall we have a resurgent minerals industry, which can make our country and our communities wealthy once again, but we can only do that if we process what we dig out of the ground. Having strong supply chains is therefore imperative from a national security and a resilience perspective. What steps is the Minister taking, together with No. 10 North, the Treasury and other Departments, to ensure that the key investment case for our area—including the missing midstream, which is battery active material production—will prevent us from having to ship that wealth abroad and will ensure that we create Cornish jobs back home?
Blair McDougall
My hon. Friend and the other Cornish Labour MPs are incredible advocates for critical minerals and their potential in the UK. Projects in that part of the world are essential to our ambitions. We are supporting lithium projects in Cornwall, including through an offer in principle of £9.8 million through DRIVE35 for Geothermal Engineering Ltd, as well as a £31 million equity investment in Cornish lithium through the National Wealth Fund. We will continue to work to ensure that we keep more of that value in the UK.
Rachael Maskell (York Central) (Lab/Co-op)
The Minister for the Future of Work (Kate Dearden)
The Government recognise the vital role that post offices play in communities across the UK. We have committed to maintaining the 11,500 national minimum branch requirement, and the Government’s set access criteria, including the requirement that for 90% of the population, their nearest post office should be within one mile of where they live. We are backing this with up to £180 million in network subsidy funding over the next three years to support the cost of meeting those policy requirements, protecting access to crucial services.
Rachael Maskell
When York’s Crown post office closed after 138 years, we were given assurances that through WHSmith, we would have a sustained solution. However, Modella Capital, which has taken over WHSmith, closed the post office yesterday. We only have a teeny weeny post office in the city centre. Businesses, residents and tourists are dependent on it—we need a solution. I have met the Post Office; it says that it will take six months to get a solution. I need a solution now. What steps will the Minister take to ensure that we have a temporary solution before we get our sustained outcome?
Kate Dearden
I recognise my hon. Friend’s concerns about the availability of post office services in York city centre in the coming months. The Post Office has confirmed that it remains committed to providing a replacement branch, and it has received interest from several potential applicants. While these are operational matters for the Post Office, I will ask it to consider capacity concerns. I will keep my hon. Friend updated, and will ask officials to work with her and the Post Office on finding the temporary solution that she rightly mentions.
Olly Glover (Didcot and Wantage) (LD)
The Minister for Artificial Intelligence (Kanishka Narayan)
We already have a series of areas of regulatory focus for artificial intelligence—data protection, competition policy, equality legislation and online safety. I was particularly proud that we were one of the first countries to ensure that the egregious impacts of AI chatbots on our children were mitigated. As I mentioned earlier in the week, I am looking forward to working right across the House on any further regulatory measures required to tackle any harms from artificial intelligence.
Olly Glover
AI has the potential to transform science and research, including on campuses such as Harwell and Culham in my Oxfordshire constituency. However, those benefits will be realised only if the risks of AI are taken seriously. Will the Minister support the call of over 85 parliamentarians for the Government to use our 2027 G20 presidency to champion an international agreement to properly regulate AI and prohibit super-intelligent AI development?
Kanishka Narayan
I thank the hon. Member for raising the advances of Culham in particular. I visited the site; I take great pride in it, as a national asset when it comes to nuclear fusion and the combination of AI and energy innovation. On his point about the G20, I am proud that the Prime Minister has set out that AI will be top of the agenda. We will look to play a leadership role in ensuring that we arrive at a global code and principles for safe AI.
Sir Julian Smith (Skipton and Ripon) (Con)
The Minister for the Future of Work (Kate Dearden)
Hospitality businesses are at the heart of our high streets, communities and local economies, supporting jobs and growth across the UK, and we recognise the pressures that many continue to face. That is why we are providing targeted support for pubs, clubs and live music venues, including 15% business rates relief in 2026-27, and an additional 20% discount from April next year, while reviewing pub and hotel valuations to help ensure a fairer and more predictable business rates system. We are also investing £10 million through a new hospitality grant scheme to support growth, create jobs and strengthen local economies.
Sir Julian Smith
As the Minister knows, in areas like mine, the hospitality sector provides the bulk of employment for young people. Can I urge her to look at the Opposition Front Benchers’ proposals, and proposals from UKHospitality, for a lower NICs rate to be provided at the upcoming Budget, to allow those businesses to employ more young people?
Kate Dearden
I thank the right hon. Member for raising this. Hospitality, as he mentioned, is an absolute key employer of young people in the economy, providing rewarding routes into work. It is a critical sector to help us resolve the NEETs—not in education, employment or training—crisis. That is a key priority for this Government, and we want to work closely with the sector on providing those solutions. I am sure that he will welcome the announcement today of our significant intervention and partnership with the hospitality sector; we are working closely with UKHospitality. We are working on providing job opportunities and new work experience programmes to turn this around, and hospitality is key to that.
Jacob Collier (Burton and Uttoxeter) (Lab)
I thank Ministers for their engagement following Carlsberg’s devastating news about the closure of Marston’s brewery next year, which risks 310 jobs and the future of heritage ales from Burton, such as Pedigree and Bass. Hospitality relies on brewing, but brewing was left out of the industrial strategy and industrial energy schemes. Will that now be changed?
Kate Dearden
My heart sank when I heard the news, and I pay tribute to my hon. Friend, not only for raising this today, but for all his work in the sector on behalf of his constituents since first coming to this House. I spoke with the chief executive of Carlsberg Britvic yesterday, and I know that the proposal to close the brewery has not been made lightly. He reassured me that the team at Burton have shown exceptional commitment, skill and professionalism, and have made an enormous contribution to Burton upon Trent’s proud brewing tradition. This proposal is not a reflection on them or the quality of their work. Consumer tastes are constantly evolving, and this proposal reflects the particular long-term challenges relating to cask ale, which I have spoken to my hon. Friend about, and on which I will continue to work with him closely. I know that this will be a concerning time for workers at Marston’s. We recognise the impact that these proposals may have on those workers, their families and the local community as the company begins consulting, and I look forward to discussing this further with him.
Bradley Thomas (Bromsgrove) (Con)
The hospitality sector provides around 300,000 jobs for young people every year and contributes £96 billion annually to the economy. Despite that, the Government continue to hammer it with a series of blows, to the extent that the sector has the highest effective tax rate of any sector in the economy, paying the equivalent of 82p in taxes for every £1 of pre-tax profit made. That eclipses the 50p average rate across our economy’s 11 main sectors. What steps are the Government taking to tangibly lower business costs, so that hospitality businesses can employ more young people?
Kate Dearden
My first job was in hospitality; I remember it fondly. It has given me skills that I have used throughout my career and life, and it supported my family when we really needed it. I absolutely know the significance and importance of this sector to our economy, and the difference that it can make to people’s lives. It is a key employer of young people across the country—in the hon. Member’s constituency, in mine and in the constituencies of colleagues across the House. It provides a rewarding route into work and is a critical sector to resolving the NEETs crisis and many challenges that we face across the country.
As we grow our economy, we want to grow the hospitality sector. I work really closely with the sector and the Hospitality Sector Council to ensure that we look at all the challenges, and at how we can work together to provide more opportunities and jobs and grow the sector in every constituency across this country. I am determined to deliver that.
Freddie van Mierlo (Henley and Thame) (LD)
The Secretary of State for Business, Innovation, Science and Trade (Jonathan Reynolds)
I have just led one of the largest trade missions we have ever sent to India, which is the fastest-growing economy in the G20. I was joined by northern mayors, the Environment Secretary, the Scotland Secretary and a Great North delegation of more than 200 businesses. We announced over £1 billion-worth of new deals, benefiting a host of British firms, including Menzies Aviation, Panakeia and Oxford Nanopore Technologies. Since our trade agreement was signed, £12 billion in new business has been announced, supporting thousands of jobs and driving good growth in every postcode of our country.
During the visit, I co-chaired the Joint Economic and Trade Committee with Minister Goyal on tackling any remaining trade barriers. With our northern mayors, we also launched the UK-Maharashtra growth partnership, to foster closer regional ties and drive the creation of high-value jobs in both our countries. This is just the start. Our free trade agreement is forecast to boost bilateral trade by over £25 billion a year. We have opened the door, and businesses are walking through it, with Government backing them every step of the way.
Freddie van Mierlo
The Diamond Light Source facility and ISIS Neutron and Muon Source facility neighbour my constituency of Henley and Thame. They are on the frontline of cuts to the Science and Technology Facilities Council, and now there are concerns that further savings may be required. Can the Minister confirm to the House today that those facilities will remain open and operational to the end of the financial year, and through to 2028?
Jonathan Reynolds
I am grateful for the hon. Member’s championing of science. I revert to the comments I made about the scale of investment this Government are making in science and research and development, and the prioritisation of funding, which comes from a science-based assessment. There is an element of funding for the defence package that we had to find from the former Department for Science, Innovation and Technology budget. I will write to him about any concerns he has, but I reiterate that this is a Government and a country that are committed to science.
Alex McIntyre (Gloucester) (Lab)
Madam Deputy Speaker (Ms Nusrat Ghani)
Questions should be really on point.
The Minister for the Future of Work (Kate Dearden)
I thank my hon. Friend and Labour colleagues for their work on this. I agree that the Royal Mail service has been unacceptable for too long, and that the pace of improvement must increase, and my constituents share exactly the same frustrations. The Government expect Ofcom to use its full range of existing tools to secure better outcomes for postal users, and I will continue to work closely with it and with colleagues in the House to deliver that.
Madam Deputy Speaker (Ms Nusrat Ghani)
I call the shadow Secretary of State.
Julia Lopez (Hornchurch and Upminster) (Con)
The Secretary of State confessed last month that business leaders have urged him not to return to the political uncertainty around our relationship with the EU. The Prime Minister has now completely ignored him, and them, and says that the UK could pursue a customs union or a single market, or go all the way back in. He clearly was not in the 2017 to 2019 Parliament; he has barely been in this one. Will the Secretary of State tell businesses what the Prime Minister’s preferred option is?
Jonathan Reynolds
I am grateful for that question. I am proud of the trade deals that this Government have done with the rest of the world—we have talked about India, the Gulf, South Korea and Switzerland—and we have retained membership of the comprehensive and progressive agreement for trans-Pacific partnership. However, there is uncertainty from action taken on the European side; that is the Prime Minister’s point. The “Made in Europe” agenda is one of great uncertainty for UK businesses. It is primarily about automative and aerospace at this stage, but it runs through some 50 different bits of EU legislation. The Prime Minister is right to have the aspiration for a closer trading relationship with the EU—I support that entirely—that is consistent with our work with the rest of the world. We must get to a point where we remove uncertainty by getting clarity on what this will mean for the long-term future of our relationship with the European Union.
Julia Lopez
The Secretary of State could not say what the Prime Minister’s preferred relationship is, and I think that is because the Prime Minister himself does not actually have a clue. Today, the Business Secretary trumpeted the free trade agreement struck with India; he took northern mayors, and a rep from Man City, on his trip this week to expand that. Sir Keir Starmer spoke about his pride and relief at telling Jaguar Land Rover workers that he had struck a trade deal on cars with America that would save their jobs. Those deals are possible because we are not in the EU. Can the Secretary of State guarantee that in the UK-EU trade talks that are under way, the Prime Minister will offer no concessions that could jeopardise our non-EU trade deals?
Jonathan Reynolds
First, we took 200 businesses to India; the mayors took their own delegation. The Manchester City representative came with the Mayor of Greater Manchester, rather than with me. I wish to put that on the record to avoid any lack of clarity. A lot of what the Conservative Government promised on trade but were not able to deliver has been delivered by this Government, and of course I am proud of that. The fact is that the Prime Minister is right to have that aspiration for a closer trading relationship—seven of our top-10 trading partners are other EU member states—and to seek clarity for the future. That is what he is doing, and I support him in that.
Chris Ward (Brighton Kemptown and Peacehaven) (Lab)
Jonathan Reynolds
I recognise the specific issues in Brighton, and what the closure of R-Bar and Charles Street Tap will mean for Brighton’s LGBTQ+ community. The Government recognise the needs of hospitality. We have talked in this Question Time about lower business rates, and about the doubling of the employment allowance. Of course I want to work with my hon. Friend, and I am grateful to him for raising this issue directly with me. No one ever turns down a visit to Brighton, so we will see if we can get that sorted.
Madam Deputy Speaker (Ms Nusrat Ghani)
I call the Liberal Democrat spokesperson.
Sarah Olney (Richmond Park) (LD)
On Monday, the Prime Minister joined the Liberal Democrats in acknowledging that refusing to countenance closer UK relations with the EU would be a “dereliction of duty”, yet the Government remain committed to their red lines. Joining the single market and a new UK-EU customs union could boost UK GDP by at least 3.6% and result in around £27 billion a year in extra tax revenue. Does the Secretary of State agree that refusing to cross those red lines, while knowing the damage that Brexit continues to cause businesses up and down the country, is in fact a dereliction of duty?
Jonathan Reynolds
In my first year doing this job, after the election, there was some mixed advice from Liberal Democrats on trade at various times, particularly on our engagement with the US and the EU. I believe that our package of measures that forms the basis of the UK-EU reset is ambitious. As for what the sanitary and phytosanitary agreement would mean for small businesses in the hon. Lady’s constituency, and for us all, it would make a fundamental difference. Of course we are right to recognise that the situation has been very hard for business, and there is more red tape for people exporting to our major export market, but at times I get frustrated when people do not acknowledge that the things that already form part of those negotiations would make a difference to British businesses. We will have more ambitions, and our own views on how things should go, but there is an ambitious package that we should all get behind.
Callum Anderson (Buckingham and Bletchley) (Lab)
The Minister for Science, Innovation and Investment (Chris McDonald)
I commend my hon. Friend on the work of the Bletchley investment taskforce and I thank him for the many letters that he has sent me updating me on its work. I have learned about Bletchley’s strengths in innovation, advanced manufacturing and digital technologies, which are all aligned with our industrial strategy, so of course I would be keen to come and meet the investment taskforce. Perhaps we can talk about how the work of the Oxford-Cambridge growth corridor can link in and bring more investment to Bletchley too.
Martin Vickers (Brigg and Immingham) (Con)
The Parliamentary Under-Secretary of State for Business, Innovation, Science and Trade (Blair McDougall)
I, too, was in Scunthorpe recently meeting British Steel management and the unions. The positive news we can give them is that Alan Lovell is now in place as chair, and he is working hard to stabilise operations, improve health and safety, and develop the long-term plan that the hon. Gentleman has worked so hard on with to achieve.
Daniel Francis (Bexleyheath and Crayford) (Lab)
Over the past year, I have also had countless constituents contact me about the adequacy of postal delivery services across Bexleyheath and Crayford. Along with colleagues, I met the chief executive of Ofcom yesterday to look at what more it can do, but will the Minister outline what assessment has been made of the adequacy of services across Bexleyheath and Crayford and set out what more the Government can do to help my constituents?
Kate Dearden
I thank my hon. Friend for raising this matter on behalf of his constituents. I know that he shares their frustrations. I have been clear with Royal Mail that the quality of its service has been unacceptable for too long. I understand that the concerns in his constituency relate to the Bexleyheath delivery office and I know that he met Royal Mail representatives this summer. I encourage all Members to raise their concerns directly with Royal Mail management and similarly hold the company to account, as I will continue to do. His constituents deserve a reliable postal service, and they are right that they deserve better.
Robert Jenrick (Newark) (Reform)
Sean Egan from Morrisons in Walsall, Gary MacArthur from Sainsbury’s in Wickham and Jorge Costa from Sainsbury’s in Hertford are all workers who were sacked by their employers for confronting shoplifters. In Gary’s case, that happened just hours after he had applied CPR to the store’s only security guard, who would otherwise have died. Does the Secretary of State agree with me that those workers deserve their jobs back, and that we need greater protection for workers who just do the right thing and confront shoplifters?
Jonathan Reynolds
I am more than happy to look into the cases that the right hon. Gentleman raises, and we will be in touch with him about them.
Josh Newbury (Cannock Chase) (Lab)
When I visited Alpro and Navara Oat Milling over the summer, I heard how rising energy costs are putting pressure on food manufacturers, with knock-on effects for their supply chain and, ultimately, food inflation. Given the importance of these energy-intensive industries to our economy, how is the Department helping British manufacturers remain competitive, attract investment and mitigate rising food production costs?
Blair McDougall
My hon. Friend is a great champion for that sector. The British industrial competitiveness scheme is now open. In addition, we will be reviewing the British industry supercharger later in the year and we will be working closely with the food manufacturing sector as we do that.
Chris Law (Dundee Central) (SNP)
As well as breaking the UK’s legally binding climate commitments and contributing to a global climate disaster, the approval of Rosebank will result in the UK continuing to facilitate illegal Israeli settlements in Palestine and being complicit in breaches of international law. Israeli energy company Delek Group, which owns Ithaca Energy, has been named in the United Nations list of businesses whose activities in the west bank have raised particular human rights concerns, and it has received over £200 million in revenue from the Rosebank field. Given that Norway’s sovereign wealth fund and largest pension fund have already divested from Delek, will the Secretary of State confirm that Delek Group Ltd will be one of the companies sanctioned for its role in illegal settlement expansion?
Jonathan Reynolds
The hon. Gentleman knows that the licensing of North sea oilfields is a matter for the Energy Secretary. In relation to his point about our announcement on sanctions for illegal Israeli settlements, we have made a clear and consistent stand. We have talked about how the legal regime for that will be the SAMLA—Sanctions and Anti-Money Laundering Act 2018—regime. That will provide more certainty and it will have real consequences—it is not just a symbolic gesture. I will not comment on any individual company, but if the hon. Gentleman’s intentions and aspirations are for strong action in this area, this Government are providing it.
Henry Tufnell (Mid and South Pembrokeshire) (Lab)
I welcome the Government’s support for British industry, including through the British industrial competitiveness scheme. However, the fact that the oil refinery sector is not included in that scheme threatens thousands of jobs and our national energy security. Will the Secretary of State consider expanding the scope of the scheme and reviewing its broader eligibility requirements?
Blair McDougall
I thank my hon. Friend for his consistent support for the refining industry. I have been meeting with the industry this week to discuss issues such as the energy issues that he mentions. We recognise that the sector faces real challenges. The work to consider the impacts and the feasibility of bringing refined products, for example, into the scope of the UK carbon border adjustment mechanism is ongoing, and we will certainly continue to engage with him on energy costs and other issues.
Tessa Munt (Wells and Mendip Hills) (LD)
I have been contacted by Petruth Paddocks, a family-run camping business on the outskirts of Cheddar, which welcomes more than 20,000 visitors a year and supports more than 50 jobs. Its business rates liability this year has increased by almost 2,700%, from £1,070 per annum to £28,820 per annum, with no meaningful warning and no chance to plan for this catastrophic hike. Will a Minister or the Secretary of State meet me to discuss what can be done in rural Somerset, where so many businesses depend on hospitality and tourism? They really cannot take this kind of kicking.
Jonathan Reynolds
Those are obviously dramatic figures —I assume that they have happened through revaluation. I will endeavour to get the hon. Lady in contact perhaps with the Treasury, rather than this Department, to support her constituency.
Madam Deputy Speaker (Ms Nusrat Ghani)
I call the Chair of the Select Committee.
Liam Byrne (Birmingham Hodge Hill and Solihull North) (Lab)
On Tuesday, the head of MI5 warned that AI could help terrorists to develop bioweapons. In the Select Committee, OpenAI and Anthropic told us that statutory AI safety controls are now essential. We are blessed to have the AI Security Institute in this country, but it is no longer enough. Will Ministers confirm that we will have Government amendments on Report of the Cyber Security and Resilience (Network and Information Systems) Bill to ensure that we have statutory AI protections to keep this country safe?
The Minister for Artificial Intelligence (Kanishka Narayan)
I thank my right hon. Friend for his advocacy and leadership on this matter over the course of the last many weeks. I have mentioned already this week that I want to work with parliamentarians across the House, including him and members of his Committee, on ideas for the Cyber Security and Resilience (Network and Information Systems) Bill, looking in particular at AI security protections.
Christine Jardine (Edinburgh West) (LD)
A lot of work is being done in Scotland—in Edinburgh, Glasgow and elsewhere—to develop a space culture, with space technology and satellite technology. With the controversy this week about potential interference in the Ukrainian war effort using satellite technology, do the Government intend to step up investment and support for research and development in this area, in the interests of our own national security?
Jonathan Reynolds
I was very much hoping for a space question, so I am very grateful to the hon. Lady. Space technology is one of the most exciting and fundamental horizontal technologies for our economy; I recently attended the International Space Summit in Paris to hear about that. We have launched our space strategy, and Scotland is key to that. She will know about the SaxaVord launch capacity investment. I assure her that we will keep her involved in the progress of this successful strategy.
Leigh Ingham (Stafford) (Lab)
It will surprise no one in this House to hear that I believe growth in every postcode should start in our towns. Will the Minister tell me what we are doing to support brilliant businesses such as Hill Helicopters in my constituency to grow, thrive and export?
Blair McDougall
I spent a fantastic day with the aerospace industry last week. Over and over again, they spoke so enthusiastically about the Aerospace Technology Institute and the investment that we are putting into the sector. I pay tribute to the company that my hon. Friend mentions in her constituency. Advanced manufacturing of all sorts is one of the things that we are really great at in this country, which is why we are backing it with the industrial strategy.
Mr Will Forster (Woking) (LD)
Last month, McLaren announced a £500 million investment, which will create 1,000 jobs. That is particularly beneficial in my constituency, and I know that the Secretary of State visited the constituency to share in that good news. What steps are he and the Government taking to ensure that McLaren and other businesses can expand in that way?
Jonathan Reynolds
It is always a pleasure to visit McLaren, and I was delighted that it was part of an investment in the automotive sector in this month alone of £850 million. Those incredibly strong and supportive investments reflect the incentives we have put in place in the industrial strategy. I know that there is a specific issue locally with ensuring that that investment happens, and we will talk to the company about that. Our trade, innovation and wider business agenda is all about supporting successful businesses.
Markus Campbell-Savours (Penrith and Solway) (Lab)
Will the Secretary of State join me in congratulating Malcolm Wilson OBE and the team at M-Sport in Dovenby on re-securing the Ford world rally car championship programme, creating new skilled jobs for Cumbria? Can he also tell us what support the Department can provide to help high-performance automotive firms such as M-Sport create skilled apprenticeships for our young people?
Jonathan Reynolds
I thoroughly endorse what my hon. Friend has said—I believe that he and I once campaigned quite close to where that business is based. It is brilliant news, and reflects the tremendous industrial heritage of Cumbria.
Susan Murray (Mid Dunbartonshire) (LD)
I suspect I am going to add to the Secretary of State’s frustration when I ask on behalf of Scottish food and drink exporters, who still face paperwork and border checks that did not exist before breakfast—before Brexit—[Laughter.]
Susan Murray
Hungry, yes. If growth is the mission, will the Secretary of State open talks on a customs union with the EU?
Jonathan Reynolds
We can all go for breakfast soon. Of course, I understand the hon. Lady’s point, particularly on food and agriculture—addressing that is part of the EU-UK reset. I would also point her to, for instance, the tremendous opportunities we have created, such as reducing the tariff on Scottish whisky in India from 150% to 75% and then 40% in time. Scottish salmon is also part of that, so I promise the hon. Lady that we are always championing the interests of her constituents in every market.
Alison Hume (Scarborough and Whitby) (Lab)
Boulby underground laboratory in North Yorkshire is competing to host XLZD, a prestigious physics experiment that could deliver Nobel prize-winning discoveries in the UK. In the light of the Science and Technology Facilities Council cuts, can the Minister reaffirm the Government’s commitment to securing the XLZD dark matter experiment for the UK?
Chris McDonald
It is quite a number of years since I was underground at Boulby, but I do remember the experience and how important that dark matter laboratory is. The particular issue at the Boulby mine is that it has increased its capacity, so its rental charges have gone up, and within the scope of its existing budget, that means about half a million pounds of its £1 million operating budget has been taken forward into the £4 million overall budget it has. The Government have funded the development of the laboratory that my hon. Friend describes until 2027-28; if the UK is successful, though, that would require additional funding above and beyond existing budgets.
Ms Julie Minns (Carlisle) (Lab)
There is much interest from aerospace companies in the 1950s Blue Streak launch facilities at RAF Spadeadam in my constituency. What assessment has been made of the potential of UK sites for developing heavy-lift rocket testing in the UK, and will the Minister meet me to discuss the potential of Spadeadam?
Chris McDonald
Spadeadam is, of course, another amazing facility that I have visited in recent years. My hon. Friend is quite right: there is the potential there, and I agree that a full assessment of that potential must be made, alongside that of our other launch facility in the Shetland Islands.
Euan Stainbank (Falkirk) (Lab)
With Syngenta ending its Grangemouth operations despite the Government’s substantial offer to intervene, we have a narrow window to avoid this incredibly well-positioned site lying vacant. What interventions are the Government prepared to make to seriously secure new industry and new jobs for this site and, more broadly, the Grangemouth industrial complex this side of 2030?
Blair McDougall
My hon. Friend is a constant advocate for the Grangemouth site. Last night, I and my officials met representatives of the National Wealth Fund and the Office for Investment to push forward on this. We have a taskforce meeting on Monday at which, among other things, we will be pushing for faster action to prepare the groundwork for investment, so that we can deploy the £200 million from the National Wealth Fund that we have set aside.
Jayne Kirkham (Truro and Falmouth) (Lab/Co-op)
Truro lost its post office last week as well, without a temporary alternative. Will the Minister consider consulting with the Post Office on alternatives when this happens in main cities and looking again at the franchise model, which seems to leave post office branches very vulnerable?
Kate Dearden
I thank my hon. Friend for bringing this matter to my attention, and I would be more than happy to meet her to discuss it further.
Perran Moon (Camborne and Redruth) (Lab)
Plans to revive Cornish tin and tungsten mining are well advanced with the support of the National Wealth Fund. However, if tin or tungsten were to be brought to the surface today, it would have to be shipped to the other side of the world for refining and processing, with only a fraction coming back to the UK at seriously increased cost. When Cornish MPs meet the Minister next week, can we discuss plans from Government to invest in domestic refinement of tin and tungsten?
Blair McDougall
We will absolutely discuss that. As my hon. Friend knows—because he talks to me about this issue at every available opportunity—we are determined to make sure that more of the value of that entire process remains in the UK, which is why we are putting £50 million on the table for exactly that sort of development work.
Ian Lavery (Blyth and Ashington) (Lab)
The Royal Mail sorting offices in my patch are in absolute chaos—they are in meltdown—and I am really concerned that someone will end up in a tragic situation because of the lack of service. I have met Royal Mail on numerous occasions and there has been no change whatsoever—in fact, the service is getting worse. What can the Minister do to remedy the situation before somebody needs to be held accountable for a very serious situation?
Kate Dearden
I share my hon. Friend’s frustrations and concerns. Whether it is the biggest issue in my inbox and my constituency or from what I have heard from colleagues across the House, it is clear that Royal Mail has to do better, and I have been frank in my discussions with Royal Mail’s chief executive officer that it must deliver improvements at a much quicker pace. I will continue working with my hon. Friend to ensure that we can deliver for his constituents and those across the country who need a reliable postal service.