Energy Tariff Cap: Effective Competition Decision
Lord Sharma Excerpts(4 years, 2 months ago)
Written StatementsRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Secretary of State for Business, Energy and Industrial Strategy (Alok Sharma)
I am today announcing that the price cap on standard variable and default energy tariffs will remain in place for 2021.
The independent energy regulator, Ofgem, has carried out an assessment into whether the conditions are in place for effective competition in domestic supply contracts. Ofgem have been transparent in how they made their assessment. As required by the legislation, Ofgem have made a recommendation as to whether the price cap should be extended. The Government value the expertise and insight of Ofgem, and I have considered that report and recommendation in reaching my decision.
As set out in the relevant legislation, the price cap can be extended for a year at a time up to the end of 2023 at the latest.
While there have been some improvements across the market in recent years, such as increased consumer engagement, rising switching levels and progress with the smart meter rollout, there is still more to do to ensure consumers will not face unfair prices in its absence.
More than half of energy consumers are still on standard variable or default tariffs, where in the absence of the cap they would likely be paying excessive charges for their energy use.
Extending the cap means that 11 million households will continue to be protected from overcharging in the energy market. The cap will continue to safeguard these consumers, while other initiatives such as faster switching, the smart meter rollout and consumer engagement programs continue to contribute to a more competitive market.
[HCWS524]
Covid-19 Vaccine
Lord Sharma Excerpts(4 years, 2 months ago)
Written StatementsRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Secretary of State for Business, Energy and Industrial Strategy (Alok Sharma)
Today, I am announcing new initiatives the vaccine taskforce has invested in to ensure that a successful covid-19 vaccine is available as soon as possible.
I can inform the House that we are establishing human challenge trials for possible covid-19 vaccines in the UK.
In human challenge studies, the vaccine is given to a small number of healthy adult volunteers, who are then exposed to the virus. Medics and scientists then closely monitor the effect to see exactly how the vaccine works and identify any side effects. These studies are conducted under strict health and safety conditions—the safety of all volunteers is paramount.
The first stage of this project will be delivered by a partnership between Imperial College London, the Royal Free London Hospital’s specialist and secure research unit in London and industry-leading clinical company hVIVO, which has pioneered viral human challenge models. The aim will be to discover the smallest amount of virus it takes to cause a person to develop covid-19. This is known as a virus characterisation study and will be backed by £33.6 million of Government investment. If approved by regulators and the ethics committee, the studies would start in January with results expected by May 2021.
I can also announce that the Government are investing £19.7 million in Public Health England (PHE) to expand their state-of-the art laboratories at Porton Down.
This will allow PHE to run crucial tests on blood samples taken from participants of the covid-19 vaccine clinical trials to monitor the effectiveness of the vaccines. These tests are essential in supporting the development and regulatory approval of vaccine candidates. Scientists at PHE’s laboratory in Porton Down have been working on developing this testing capability since the start of the pandemic. The investment in these world-leading facilities and expertise will enable scientists to provide critical testing support for vaccine trials taking place in the UK. It will also ensure that the UK has access to a centralised laboratory to test the samples. This will give us a greater understanding of how potential vaccines work and compare against one another.
The funding announced today for these ground-breaking studies marks an important next step in building on our understanding of the virus and accelerating the development of our most promising vaccines.
[HCWS528]
CCC Report on Reducing UK Emissions: Government Response
Lord Sharma Excerpts(4 years, 2 months ago)
Written StatementsRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Secretary of State for Business, Energy and Industrial Strategy (Alok Sharma)
I wish to inform the House of the laying of the Government response to the Committee on Climate Change (CCC) 2020 report on reducing UK emissions.
While covid-19 has presented immense challenges for businesses and Governments, the need for action on climate change has not diminished. The Government have been clear that we owe it to future generations to build back better and support the creation of a fairer, greener, and more resilient global economy.
The UK has already taken huge strides in bringing forward ambitious net zero policies across all sectors of the economy. We have reduced emissions faster than any other G7 nation since 1990, and in 2019, we became the first major economy to legislate to achieve net zero greenhouse gas emissions.
We welcome the CCC’s report and are pleased that the committee has recognised the progress we have made over the last year in establishing an appropriate policy framework to deliver our net zero ambitions.
Our response sets out the progress and the further actions we will take to deliver net zero and meet our carbon budgets. We provide specific responses to each of the CCC’s recommendations outlining how each Government Department intends to put clean growth and net zero at the heart of the economic recovery.
We will publish a comprehensive net zero strategy ahead of COP26 setting out the UK’s plan to work towards becoming carbon neutral by 2050. This will outline our vision for transitioning to a net zero economy, making the most of new growth and employment opportunities across the UK. This will build on the tens of billions of pounds that this Government have already committed to tackling climate change.
Just since March, we have announced over £3 billion to reduce emissions from the UK’s buildings; £250 million for an emergency active travel fund as part of a £2 billion package for cycling and walking within plans to boost greener, active transport; £191 million into a sustainable innovation fund; and £100 million into research, development and demonstration of direct air capture technologies, alongside £350 million into cutting emissions in heavy industry.
On 6 October, the Prime Minister announced that £160 million will be made available to increase our offshore wind capacity in order to meet the Government’s updated ambition of generating 40GW through offshore wind by 2030. This is an increase from the previous 30GW target, which means that offshore wind could produce enough electricity to power every home in the country by 2030.
Our response also includes a new commitment to develop and publish a new cross-Government biomass strategy by 2022.
The significant challenges of tackling climate change will require collaboration across Government, business and civil society. We would like to reiterate our thanks to the CCC for their report and we are also grateful to the devolved Administrations for their input in outlining the actions being taken across the United Kingdom to achieve net zero.
2021 marks a hugely significant year for both domestic and global climate action. Through our COP26 and G7 presidencies, the UK will drive international co-operation in the year ahead and we will continue to press countries for more ambition to reduce emissions, build resilience, and support each other.
We will continue to work closely with the CCC, businesses, and others, to unite in delivering our ambitious economic strategy for the UK to build back better and transition to net zero by 2050.
[HCWS517]
International Vaccines Procurement Initiative (COVAX): UK Participation
Lord Sharma Excerpts(4 years, 2 months ago)
Written StatementsRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Secretary of State for Business, Energy and Industrial Strategy (Alok Sharma)
I am confirming that the United Kingdom has joined the global COVAX initiative to expedite the discovery, manufacture, and fair distribution of an effective coronavirus vaccine to 1 billion people globally.
The UK is a strong supporter and champion of COVAX and its mission to deliver fair and equitable access to covid-19 vaccines around the world. We are pleased that over 170 countries and territories have announced their intention to join COVAX. Through this initiative, countries are pooling resources to support “at risk” investment in manufacturing and secure advance purchase agreements with manufacturers for the supply of their vaccines. COVAX will procure vaccines for both high-income and lower-income countries and will distribute vaccines equitably.
The COVAX facility is being run by the vaccines alliance (Gavi), with the support of the World Health Organisation (WHO) and the Coalition for Epidemic Preparedness Innovations (CEPI). It has two parts:
a self-financing facility to allow upper-middle and high-income countries to pool investments in candidates in exchange for early access to vaccines; and
the advance market commitment (AMC) fund, to support 92 low and lower-middle income countries to buy vaccines.
We have contributed £71 million to the self-financing facility. This will give us an option to buy vaccines available through COVAX for up to 20% of the UK population (13.5 million people). Any vaccines secured through COVAX will be complementary to those the UK has already secured through its agreements with vaccine developers.
The Prime Minister announced at the United Nations General Assembly (UNGA) that the UK will allocate £500 million of ODA funding for the procurement and delivery of covid-19 vaccines in low and lower middle-income countries. This is in addition to the £48 million we allocated to the AMC at the global vaccine summit in June 2020.
This new funding includes a commitment to match £1 for every $4 committed by others, up to £250 million, encouraging other countries to fund the global effort to fairly distribute vaccines across the globe and leverage an additional $1 billion for the AMC. Canada, Germany, Sweden and Japan have all made commitments of over $422 million. This means we have, so far, matched almost £106 million of this funding.
In addition, the UK has worked with the World Bank to develop an ambitious $12 billion proposal for vaccine financing, which was also announced at UNGA. The World Bank will make up to $6 billion of its financing available to middle-income countries and $6 billion to low and lower middle-income countries, to help them secure access to covid-19 vaccines.
[HCWS511]
Renewable Energy
Lord Sharma Excerpts(4 years, 2 months ago)
Written StatementsRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Secretary of State for Business, Energy and Industrial Strategy (Alok Sharma)
Today, the Prime Minister announced new investment of £160 million to support offshore wind, and a new level of ambition for the next round of the renewable contracts for difference energy auction.
This funding will support major new port-side manufacturing hubs, so that the UK can host the factories making the next generation of offshore wind equipment.
The Government also confirmed a boost to their previous target to deliver up to 30GW of offshore wind to delivering 40GW by 2030.
The Government also announced a new ambition for 1GW of the new 40GW by 2030 target to come from floating offshore wind—a brand new technology allowing windfarms to be built further out to sea in deeper waters, boosting capacity even further. This will put the UK at the forefront of the next generation of clean energy.
Together with planned stringent requirements on supporting UK manufacturers in Government-backed renewables projects, these measures will help the industry to reach its target of 60% of offshore wind farm content coming from the UK, helping to also boost lower carbon supply chains.
To help deliver these ambitious targets and accelerate the country’s progress towards net zero emissions by 2050, the Government have confirmed that the next round of the renewable energy auction will open in late 2021 and aim to deliver up to twice the capacity of last year’s successful round—potentially providing enough clean energy for up to 10 million homes.
Today’s announcement marks the latest stage of the Government’s support for renewable energy and acceleration of the transition to net zero. The Prime Minister has set out new plans to build back better and build back greener by making the UK the world leader in clean wind energy—creating jobs, reducing carbon emissions and boosting exports.
[HCWS491]
Oral Answers to Questions
Lord Sharma Excerpts(4 years, 2 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Grahame Morris (Easington) (Lab)
The Secretary of State for Business, Energy and Industrial Strategy (Alok Sharma)
In July, the Government published their ambitious R&D road map, reaffirming our commitment to cement the UKs position as a science superpower. We will revitalise our whole system of science, research and innovation to release its potential, and our investment in multiple disciplines and methodologies will be guided by expert researchers.
Grahame Morris
I thank the Secretary of State for that answer. A successful transition to new approach methodologies requires the support of Government- backed infrastructure, a strategic allocation of funding, improved education, multidisciplinary collaboration between universities and industry, and close collaboration with the regulators. Will he undertake to prioritise the opportunities offered by human-relevant methods, so that the UK does not risk losing its position as a global leader in biomedical research and innovation?
Alok Sharma
I know that the hon. Gentleman cares deeply about this issue and launched a white paper on it earlier this year; I welcome the contribution of that report. The use of animals in research is carefully regulated and remains important in ensuring that new medicines and treatments are safe. However, the Government are committed to reducing and replacing the use of animal research, and we have invested £67 million to support the development of new techniques that will help to achieve that.
Dr James Davies (Vale of Clwyd) (Con)
The Secretary of State for Business, Energy and Industrial Strategy (Alok Sharma)
My Department has delivered a wide range of measures as part of the Government’s unprecedented support package. That includes £11 billion in grants supporting almost 900,000 business premises and over £57 billion in loan guarantees to over 1 million businesses across the UK. We have also extended the deadline for the loan schemes to the end of November, ensuring that there is further support for those who need it.
Craig Williams
I thank the Secretary of State for that answer and for the support to date. When we emerge from the current crisis, we must build back in an environmentally sustainable way and ensure that we are on track to meet our net zero target. What is he doing to deliver carbon capture and storage across the UK, to ensure that manufacturing and agricultural businesses have certainty, with net zero in mind?
Alok Sharma
I agree with my hon. Friend: we need to build back better and build back greener. CCS will be an essential part of the transformation to a low-carbon economy, and it presents an opportunity for the creation of high-value jobs, which we want to see in our country. We have already announced a CCS infrastructure fund of £800 million to deploy carbon capture and storage in at least two industrial clusters over the next decade.
Dr Davies
Many businesses in the Vale of Clwyd welcome the measures that the Chancellor announced last week, but some local and regional employers of all sizes still face significant challenges—none more so than Airbus. Will my right hon. Friend recommit to doing all he can to support Airbus and its highly skilled staff at this particularly uncertain time?
Alok Sharma
My hon. Friend and other Members are champions for the businesses in their constituencies. Airbus has been discussed with me and other ministerial colleagues. Of course, Airbus is a vital part of UK aerospace. We are currently providing the aerospace and aviation sector with over £8.5 billion of support through the covid corporate financing facility, R&D grants, loan guarantees and export support. We are in regular dialogue with Airbus, to see how we can assist it and its employees.
Edward Miliband (Doncaster North) (Lab)
Over 1 million people are employed in sectors that are currently shut down, including weddings, events and nightclubs. The Chancellor last week refused to support them because he said they are not “viable”, but those businesses are shut because they are rightly following the Government’s public health guidance to help tackle the virus. As the person responsible for standing up for the businesses of this country, does the Business Secretary not think it is wrong, insulting and terrible for our long-term economic future as a country to write off as unviable these businesses and jobs that provide livelihoods for so many people in our country?
Alok Sharma
As the right hon. Gentleman knows, I talk to businesses every day, as he does, and I know it is very difficult for many of them right now. The job support scheme announced by the Chancellor provides targeted support for jobs and business facing lower demand over the coming months. He will also know that the measures have been welcomed by business groups and, indeed, trade unions. The TUC said:
“the Chancellor has listened and done the right thing.”
In addition to the JSS, there are other measures available to support all businesses across the country.
Edward Miliband
The Secretary of State did not answer my question about these businesses that are currently shut down and that are doing the right thing. Many of them have no income coming in, they are excluded from the JSS and they are already loaded up with debt, yet they have rent to pay and overheads to cover, and the Government are just leaving them out in the cold. I believe these were good, viable businesses before the pandemic. They were good enough for the Government to support them back in March, and we need them for our economy after the crisis is over. Will he stand up for these businesses that need help and give them the support they need to help at least survive the crisis?
Alok Sharma
Let me assure the right hon. Gentleman that this Department does stand up for businesses. We have a very regular dialogue with sectors on an ongoing basis. As I said, I acknowledge that some of them are facing particular difficulties. As he himself knows from his time in government, we are not going to be able to protect every single job—very, very sadly—but that is why we are providing extra support in the welfare system but also, really importantly, in support with skills and, indeed, apprenticeships and the kickstart scheme for young people, so that we can help people into better jobs.
Darren Jones (Bristol North West) (Lab)
It has been confirmed that the Secretary of State is due to rewrite the industrial strategy this autumn. Given the concern from businesses that the Department is the voice of Government to business, as opposed to the voice of business to Government, could the Secretary of State confirm how businesses will be engaged in the drafting of the new industrial strategy?
Alok Sharma
The Chairman of the Business, Energy and Industrial Strategy Committee of course raises an important point, and he will know that I have come to the House on previous occasions and outlined the detailed discussions we have. I set up a range of taskforces, where we had discussions on issues around the industrial strategy back in June, and we converse on a daily basis with sectors across the country.
Kerry McCarthy (Bristol East) (Lab)
I was really disappointed by the answers the Business Secretary gave to my right hon. Friend the Member for Doncaster North (Edward Miliband). I have global exhibition companies in my constituency that are on the verge of going bust. They do not need to be told about the kickstart scheme or apprenticeships, or to be told that universal credit is available for them. These companies are calling for an extension of business rate relief and a new grant scheme, bearing in mind that many of them were not eligible for the retail, hospitality and leisure grant. Will the Secretary of State consider this, and commit to publishing a provisional date when conferences and exhibition events can reopen, as has been happening in parts of Europe? Will he also agree to meet the sector? I have tried lobbying the Department for Digital, Culture, Media and Sport on this, and I am getting nowhere. Will he pay attention to this sector?
Alok Sharma
As the hon. Lady outlines, this particular sector is the responsibility of the Department for Digital, Culture, Media and Sport. However, I have been talking to representatives of the sector, as have my ministerial team and, as I have said, we will continue to have such conversations. As I have also said, the Chancellor set out a significant package of support since the start of this pandemic, and people are still able to make use of that support.
David Mundell (Dumfriesshire, Clydesdale and Tweeddale) (Con)
Paul Blomfield (Sheffield Central) (Lab)
The Secretary of State for Business, Energy and Industrial Strategy (Alok Sharma)
Some 9.6 million jobs have been supported through the coronavirus job retention scheme and millions of people have now moved off furlough and back into work. The job support scheme and other measures, such as the extension of our temporary VAT cut for the hospitality and tourism sectors, demonstrate our commitment to supporting businesses and workers.
Paul Blomfield
May I return to a theme that has been raised by other Members without success in terms of answers? Sheffield City Region Music Board wrote to the Culture Secretary with local Members over six weeks ago about the problems facing the music industry. We have had no reply. The new job support scheme offers nothing to businesses that are unable to open, such as many of Sheffield’s iconic music venues, with impacts on jobs right across the sector. One constituent said to me yesterday that by declaring most music businesses not viable, the Government have basically hung everyone out to dry. Ministers did not address this issue in their earlier answers, so will the Secretary of State recognise the problem and spell out what action the Government will take to protect jobs in the music, events and creative industries?
Alok Sharma
I completely understand the concerns that colleagues have about the sectors that are not open. I can only reiterate, without going into full details, that we continue to have discussions with those sectors. The hon. Gentleman talks about the particular sector that he knows, which is the responsibility of another Secretary of State, but I have spoken to my right hon. Friend the Secretary of State for Digital, Culture, Media and Sport about those issues in the past day or two. We will continue to have discussions.
I say to the hon. Gentleman that we are trying to make sure that the economy stays open, and the vast majority of the economy is open, but we need to do that in a safe way. If we all play our part, we will be in a position where we can reopen the rest of the economy and move to some sense of normality.
Mike Hill (Hartlepool) (Lab)
Liz Saville Roberts (Dwyfor Meirionnydd) (PC)
The Secretary of State for Business, Energy and Industrial Strategy (Alok Sharma)
Government Departments consider the impact of any support they provide and the Government’s recent covid-19 measures have been hugely welcomed by businesses. Our upcoming consultation on subsidy control will allow us to gather views on how to ensure those measures continue to be effective in achieving our economic objectives.
Liz Saville Roberts
Putting the covid period to one side, it is worth remembering that in 2018 the UK spent only 0.38% of GDP on state aid. France spent twice as much and Germany four times more. With the United Kingdom Internal Market Bill, the Government will centralise state aid decision making in London. When will his Government lift the arbitrary borrowing cap on the Welsh Government to enable Wales to invest in Welsh infrastructure and thus boost Welsh productivity?
Alok Sharma
We have had this debate, of course, during the passage of the United Kingdom Internal Market Bill over the past few days. Subsidy control has never been a devolved matter. The right hon. Lady is absolutely right. We have always been clear that the regulation of subsidy control is a reserved matter. There will be a consultation, but ultimately we want to promote a competitive and dynamic economy throughout the whole of the United Kingdom.
Anthony Mangnall (Totnes) (Con)
Mohammad Yasin (Bedford) (Lab)
The Secretary of State for Business, Energy and Industrial Strategy (Alok Sharma)
I know that the plight of sub-postmasters involved in the Horizon IT scandal has rightly concerned many hon. and right hon. Members. There have been repeated calls for a judge-led inquiry into this matter. I can confirm that former High Court judge Sir Wyn Williams will chair the Government’s inquiry, which begins this week. The terms of reference have been expanded following feedback from former postmasters and hon. Members. The Under-Secretary of State for Business, Energy and Industrial Strategy, my hon. Friend the Member for Sutton and Cheam (Paul Scully), who is leading this work in my Department, will be pleased to update colleagues.
Mohammad Yasin
The landlord of the Burnaby Arms pub in Bedford has three staff on zero-hours contracts. One is currently on flexible furlough, working reduced hours. The other two are still on furlough and have been informed that they will lose their jobs when furlough ends unless the situation for wet-led pubs changes. How does the job support scheme—which actually costs this and many other businesses in my constituency more money to keep staff—prevent mass job losses?
Alok Sharma
The best thing we can do to continue to keep the hospitality sector open is to ensure that we get the virus and the infections under control, and that is precisely what we are doing with the proportionate measures that the Government are taking.
Cherilyn Mackrory (Truro and Falmouth) (Con)
Chi Onwurah
What is the Government’s strategy for the British sat-nav system?
Alok Sharma
I think the hon. Lady is making reference to the UN global navigation satellite systems programme. It is not being closed; due to the importance of the Government’s ambitions for the space sector, the programme is being reset and its remit widened.
Shaun Bailey (West Bromwich West) (Con)
Alok Sharma
We are indeed refreshing the 2017 industrial strategy to reflect the Government’s priorities, which are putting the UK at the forefront of technological opportunities, boosting growth and productivity across our country, and supporting a green recovery. I would be happy to meet my hon. Friend to discuss the black country industrial strategy.
David Mundell (Dumfriesshire, Clydesdale and Tweeddale) (Con)
Alok Sharma
I recognise the historic significance and role of the post office in Sanquhar, and I thank all the staff who have kept it running over the years, particularly most recently through the covid pandemic. I very much hope that a long-term future for that post office can be secured.
Matt Western (Warwick and Leamington) (Lab)
Alok Sharma
As the hon. Gentleman knows, we are supporting the hospitality sector. Business rates are not required to be paid for the full year, and other support is available across the economy. If we want to get back to normality, we must get this infection under control, and we all have a part to play in that.
Mr Philip Hollobone (Kettering) (Con)
Alok Sharma
My hon. Friend may know that we have funded Citizens Advice to provide local advice during this crisis, and we have negotiated a voluntary agreement with energy suppliers to support households impacted by covid-19. I also commend the Money Advice Service for developing the money advice tool, which gives people important practical support in managing their finances.
Grahame Morris (Easington) (Lab)
Christian Wakeford (Bury South) (Con)
Alok Sharma
The Vaccine Taskforce, which is part of my Department, has made incredible progress in securing access to the most promising vaccine candidates. We have invested to build our manufacturing capacity in Oxford, Essex, Scotland and north Wales, and we will continue to work with the UK bioindustry to determine how further to develop our vaccine capabilities across the whole country.
Alan Brown (Kilmarnock and Loudoun) (SNP)
Andrew Jones (Harrogate and Knaresborough) (Con)
Alok Sharma
The Government of course recognise the challenges facing the industry. My hon. Friend is right, and I have also heard directly from representatives of the National Exhibition Centre about these challenges. Conference and events businesses can draw on the Government’s current support package, but I know that my right hon. Friend the Secretary of State for Digital, Culture, Media and Sport, who has responsibility for the sector, will continue to work closely with them.
Nadia Whittome (Nottingham East) (Lab)
Alok Sharma
We currently have a close to half a million green jobs in this country. We want to create another 2 million. The hon. Lady will also know that the Chancellor announced the green homes grant package, which will support more than 100,000 green jobs.
Aaron Bell (Newcastle-under-Lyme) (Con)
Alok Sharma
I am pleased that my hon. Friend welcomes our jobs package. The Government continue to provide a full range of measures to protect jobs, businesses and livelihoods. Of course, I want this sector—indeed, every sector—to return to normal as soon as possible, but that will require scientific evidence to show that it is safe to do so.
Caroline Lucas (Brighton, Pavilion) (Green)
Alok Sharma
I had the honour and pleasure of being questioned by the hon. Lady at a Select Committee in recent days. I repeat what I said then—that we are asking all countries to come forward with ambitious NDCs, and that I completely understand that there will be a requirement on the UK as well.
Chris Clarkson (Heywood and Middleton) (Con)
Alok Sharma
I am absolutely delighted to offer my congratulations to Heywood Magic Market, and everyone involved with this initiative, on demonstrating such innovation. As my hon. Friend knows, in May I announced the discretionary grant scheme to support market traders. We absolutely back entrepreneurs and innovators in Heywood and Middleton and across the country. The Conservative party has always been the party of business, and we will always continue to be the party of business.
Subsidy Control Regime
Lord Sharma Excerpts(4 years, 3 months ago)
Written StatementsRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Secretary of State for Business, Energy and Industrial Strategy (Alok Sharma)
I am today updating Parliament on Government plans for a subsidy control regime to replace the EU state aid rules at the end of the transition period on 31 December this year.
From 1 January, the Government will follow the World Trade Organisation rules for subsidy control. These are the internationally recognised common standard for subsidies. The rules apply to goods, not services. They ban subsidies that are dependent on either how much a company exports to other countries or the use of domestic goods over imports. For all other subsidies, they provide a mechanism to resolve disputes between countries. These rules are designed to facilitate an effective international trading system and are followed by the vast majority of countries.
Before the end of this year, the Government will publish guidance for UK public authorities to explain these rules and any related commitments the Government have agreed in free trade agreements.
The Government will also publish a consultation in the coming months on whether we should go further than those existing commitments, including whether legislation is necessary. As our approach will affect businesses and all public authorities that grant subsidies with taxpayers’ money, including the devolved Administrations, we will take the necessary time to listen closely to all those voices and to create a system that promotes a competitive and dynamic economy throughout the UK.
We will shortly lay secondary legislation to remove redundant EU state aid rules from the domestic statute book at the end of the transition period. This will provide the necessary legal certainty for businesses.
The UK Internal Market Bill, which I am introducing into Parliament today, will set out that the UK Parliament alone should legislate for the regulation of subsidies, and will ensure that there is no confusion or ambiguity in UK law about the interpretation of the state aid elements in the Northern Ireland protocol.
As regards this Government substantive approach, one of the benefits of having left the EU is that we have the opportunity to design our own subsidy control regime, in a way that works for the UK economy. The EU’s state aid system is designed for the particular circumstances of the EU, in which it is the responsibility of the Commission, as an independent authority, to police against subsidies distorting competition between EU member states within the single market. This approach is not suitable for the UK in the future and indeed their particular approach has not been followed in other advanced economies.
We are very clear nevertheless that we do not intend to return to the 1970s approach of Government trying to run the economy or bailing out unsustainable companies. We do not believe that the Government of a modern, competitive market economy should stand in the way or prevent adjustment to underlying market conditions. That is and will remain our guiding philosophy.
Equally, just as other countries do, the UK will need a modern system for supporting businesses to grow and thrive in a way that suits our interests and is consistent with a dynamic and competitive economy. As we rebuild and recover from covid, and given the broader uncertainty in the economic environment as a result, we must also maintain flexibility to support and bolster the UK’s strategic interests, and to be able to intervene faster and more easily when it is necessary to do so.
Subsidy control is an important issue in the negotiations on our future relationship with the EU. The Government have always been clear about its position: we are seeking a precedented trade deal, similar to those the EU has previously agreed with countries like Canada. Such free trade agreements do not prescribe the specifics of either party’s subsidy control arrangements, but instead provide for transparency in subsidies granted and for appropriate means of settling disputes between them. We have proposed such arrangements to the EU and we believe this is the right way forward. We will not give away our ability to determine our laws and funding arrangements in this area in an international treaty: the UK’s subsidy arrangements are a matter for people across the UK and Parliament, now and in the future.
[HCWS443]
Business, Energy and Industrial Strategy
Lord Sharma Excerpts(4 years, 3 months ago)
Ministerial CorrectionsRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Alok Sharma
My hon. Friend will know that we have supported over 9 million jobs through the job retention scheme, 2.7 million people have benefited from the self-employment support scheme and around 870,000 small businesses have benefited from grants. The Chancellor set out his plan for jobs a few days ago. The key now is to get the economy up and running, so that businesses can trade.
[Official Report, 21 July 2020, Vol. 678, c. 1979.]
Letter of correction from the Secretary of State for Business, Energy and Industrial Strategy, the right hon. Member for Reading West (Alok Sharma):
An error has been identified in the response I gave to my hon. Friend the Member for Penrith and The Border (Dr Hudson).
The correct response should have been:
Alok Sharma
My hon. Friend will know that we have supported over 9 million jobs through the job retention scheme, 2.7 million people have benefited from the self-employment support scheme and over 870,000 small businesses have benefited from grants. The Chancellor set out his plan for jobs a few days ago. The key now is to get the economy up and running, so that businesses can trade.
Oral Answers to Questions
Lord Sharma Excerpts(4 years, 5 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Andy Carter (Warrington South) (Con)
The Secretary of State for Business, Energy and Industrial Strategy (Alok Sharma)
Since the start of the covid-19 outbreak, the Government have provided £160 billion of support through a range of schemes to protect jobs and help businesses keep going. We have also provided support to businesses through measures in the Corporate Insolvency and Governance Act 2020 and the Business and Planning Bill. Working with business and trade unions, my Department has published detailed guidance to help businesses reopen safely.
Dr Hudson [V]
The Government’s support for people and businesses during the covid crisis has been fantastic and has helped countless constituents in Penrith and The Border and across the UK. Unfortunately, many have still not been able to access support, such as the newly self-employed, limited company directors, freelancers, new starters and those who fall on the wrong side of the eligibility criteria. Will my right hon. Friend work with the Treasury to see whether those hard-working people can be helped with some emergency financial support?
Alok Sharma
My hon. Friend will know that we have supported over 9 million jobs through the job retention scheme, 2.7 million people have benefited from the self- employment support scheme and around 870,000 small businesses have benefited from grants. The Chancellor set out his plan for jobs a few days ago. The key now is to get the economy up and running, so that businesses can trade.[Official Report, 1 September 2020, Vol. 679, c. 2MC.]
Ben Everitt
That is absolutely right, but it is not just about bouncing back; it is also about levelling up. Will the Secretary of State join my hon. Friend the Universities Minister in giving his backing in the spending review to the shovel-ready MK:U—a much needed technical university in Milton Keynes which will deliver cutting-edge science, technology and engineering jobs and skills for local employers?
Alok Sharma
As my hon. Friend would expect, the MK:U proposal will be judged objectively on its merits. More generally, I can confirm that the Government recognise the significant potential of the Oxford-Cambridge arc and the important role of Milton Keynes in achieving that potential.
Andy Carter
Airline pilots working for easyJet took an unprecedented decision on Friday to declare no confidence in their senior management. I have heard from many constituents who work at the airline in Liverpool and Manchester who are worried about the company’s approach of “fire and rehire on different terms”. Does my right hon. Friend agree that safety in the airline industry must always be paramount and that negotiations about future job losses should be respectful and in good faith?
Alok Sharma
My hon. Friend highlights an important point. Throughout the covid-19 period, the Government have provided unprecedented support for employment and worked in close partnership with the business community. I understand that it continues to be a difficult time for many businesses, but as he highlights, in that spirit of partnership, we expect all employers to treat their employees fairly and follow the rules.
Edward Miliband (Doncaster North) (Lab)
I want to return the Secretary of State to the question asked by the hon. Member for Penrith and The Border (Dr Hudson) about the many businesses that are part of the 3 million ExcludedUK group. They include over 2 million people who are essentially self-employed but have been disqualified from help under the self-employment scheme for various—often arbitrary—reasons. In many cases, this is not simply rough justice but deep unfairness. Many of these individuals are not high earners. Will the Secretary of State give an indication that he recognises that this is an injustice, and can he tell us how he plans to address it?
Alok Sharma
The right hon. Gentleman will also acknowledge that the Government have provided unprecedented support to businesses across the whole economy. As I said, the key right now is to support businesses to open, to get the economy up and running. That is the best way that we can support businesses across the United Kingdom.
Edward Miliband
This issue of 3 million people being excluded is not going away. Let me ask him about the winding down of the furlough scheme. Yesterday, Make UK, the manufacturers’ organisation, said that a furlough extension was vital to prevent a “jobs bloodbath” in aerospace and automotive. We see the looming threat too in sectors that have not yet reopened, such as events and exhibitions, and those operating well below capacity, such as hospitality. Yet from next week, the Government are insisting that every single employer, whatever their industry, will have to start contributing to the furlough. Does the Secretary of State not recognise that this decision to phase out the furlough, irrespective of circumstances, risks handing a P45 to hundreds of thousands of workers?
Alok Sharma
The furlough scheme will have been up and running for a full eight months, providing a huge amount of support for more than 9 million jobs. It is becoming more flexible and allowing people to return to work part time. The right hon. Gentleman will know that the Chancellor has also set out the job retention bonus which, if it is taken up by all employers, will represent a £9 billion boost for the economy. I say to him again that the key is to get the economy up and running and to get businesses trading.
Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)
As we have heard, many businesses, sole traders, freelancers and others have been left without support throughout this health emergency. They are on their knees and they are still getting no support. How can they rebuild their trade when the Secretary of State’s Government will not help them? If his Government will not help them, why have they refused to allow simple adjustments to Scotland’s borrowing rules so that the Scottish Government can step in?
Alok Sharma
The hon. Gentleman talks about support in Scotland; like many colleagues in the House, I believe in the Union, and we must work together to support workers across the United Kingdom. More than 730,000 jobs have been protected in Scotland through the furlough scheme. The hon. Gentleman will know that, as a result of the additional moneys that the Chancellor announced at the summer statement, the total additional Barnett funding to Scotland since March is £4.6 billion.
Drew Hendry
Oh how the broad shoulders of the Union slump when asked a difficult question. The Institute for Fiscal Studies has exposed how the promised £800 million of consequentials for Scotland from the Chancellor’s job package is in fact only £21 million. Will the Secretary of State now do the right thing by Scotland’s businesses and urge the Chancellor to replace the missing £779 million—or has he also bought into the Prime Minister’s stated view that a pound spent in Croydon is of more value than a pound spent in Scotland?
Alok Sharma
The hon. Gentleman talks about supporting businesses in Scotland; perhaps he will come forward and give his support to the UK internal market White Paper that we have published.
Kate Osborne (Jarrow) (Lab)
Suzanne Webb (Stourbridge) (Con)
The Secretary of State for Business, Energy and Industrial Strategy (Alok Sharma)
Through the Business and Planning Bill, we are simplifying reliefs and the costs to cafés, pubs and restaurants of obtaining a licence to allow for outdoor dining. The Chancellor has also announced a six-month temporary VAT rate reduction from 20% to 5% for the hospitality, accommodation and attraction sectors. Both these measures should help to provide a welcome boost for business.
Suzanne Webb
My constituency is known for its culinary delights such as the fantastic Butterfingers Deli, and Balti Bazaar in Lye, not forgetting its equally fantastic independent local pubs. Does my right hon. Friend agree that it is crucial that we encourage customers to get back to our pubs and restaurants to support our local economies and get our economic engines firing again?
Alok Sharma
My hon. Friend is absolutely right. We need to get out there supporting our pubs and restaurants. The Eat Out to Help Out scheme operating during August is another great incentive to support participating restaurants, cafés, pubs and other food establishments. Al fresco dining midweek in balmy August weather should be a must for all of us.
Darren Jones (Bristol North West) (Lab)
Hospitality workers who, in normal times, rely on tips as a significant part of their income have been especially hit, not just because their workplaces have been shut but because furlough payments have not recognised tip-based income. The Government have committed to bringing forward legislation to ensure that hospitality staff can keep their tips; indeed, it was a Conservative party manifesto commitment. When will that legislation be brought to the House?
Alok Sharma
The Chairman of the Select Committee raises a very important point. As he knows, we have had to bring forward a number of emergency Bills. However, I recognise the point he is making, and we will look to see the earliest point at which we might be able to bring that forward.
Tom Randall (Gedling) (Con)
Mary Robinson (Cheadle) (Con)
The Secretary of State for Business, Energy and Industrial Strategy (Alok Sharma)
The Government are investing £93 million to set up the UK’s first dedicated Vaccines Manufacturing and Innovation Centre in Harwell. We are also investing £38 million in a rapid deployment facility, which will allow vaccine manufacturing at scale to commence from later this year.
Simon Fell
The Government have stated that they are interested in creating a sovereign manufacturing capability in the north. An opportunity exists in Ulverston in my constituency to build a bioscience cluster, with deep collaboration with local universities. Using this site for therapeutic vaccine manufacturing would enable partnership with GlaxoSmithKline, which is already based in Furness, and it would preserve and create local jobs and skills, and be a great result for the north and the UK as a whole. Would my right hon. Friend meet the key partners to this project to see whether we might be able to take it forward?
Alok Sharma
I want to confirm that the Government of course continue to consider the options to ensure that we have sufficient vaccine manufacturing capacity in the UK. I will ask the vaccine taskforce to follow up on that issue with my hon. Friend.
Mary Robinson
For many of my constituents who work in Greater Manchester life sciences and in the Cheshire life sciences corridor, the Government’s drive to increase research and development into vaccines is really important. Recognising the importance of this to our local economy, what are the Government doing to increase and develop the strengths of life sciences in the Greater Manchester area?
Alok Sharma
I can confirm to my hon. Friend that, of course, the Government strongly support the growth of the life sciences sector in the north-west, which employs about 26,000 people. We have made a significant strategic investment in the Medicines Discovery Catapult at Alderley Edge to boost R&D.
Sir David Evennett (Bexleyheath and Crayford) (Con)
The Secretary of State for Business, Energy and Industrial Strategy (Alok Sharma)
In consultation with businesses, business representative groups, trade unions, Public Health England and the Health and Safety Executive, my Department has published comprehensive workplace guidance to ensure businesses can operate in a covid-secure manner, keeping both their workers and customers as safe as possible.
Sir David Evennett [V]
I thank my right hon. Friend for his reply, and welcome the work that he and his Department are doing to help businesses during this challenging time. However, what support is being given to the self-employed across the country?
Alok Sharma
As my right hon. Friend will know, 2.7 million self-employed people have accessed over £7.8 billion of grants from self-employed income support scheme. The scheme has been extended, and individuals will be able to claim a second and final grant when the scheme reopens for applications on 17 August.
Harriett Baldwin
I thank the Secretary of State for finding a way to reopen the beauty sector, which employs so many women across the country. When I paid a visit to the Malvern Spa to celebrate its reopening last weekend, I was told that it has capacity now for only 15 spa days, rather than 40, because of the square footage rules that his Department has set out. Will he look urgently at reviewing those, because it is a very spacious premises?
Alok Sharma
I thank my hon. Friend for her acknowledgement of the work we have been doing. The key has been to open businesses safely and securely in a cautious and phased manner, and we will continue to do that.
John Spellar (Warley) (Lab)
The Secretary of State for Business, Energy and Industrial Strategy (Alok Sharma)
The coronavirus vaccine taskforce set up in my Department under the excellent leadership of its chair, Kate Bingham, has been making good progress. The Government have supported the vaccines being developed at Oxford University and Imperial College and have now secured access to three different vaccine classes, as well as a treatment containing covid-19 neutralising antibodies. We are also investing, as I said earlier, in vaccine manufacturing capacity in the UK, and the taskforce is doing all it can to ensure that the United Kingdom gets access to a safe and effective vaccine as soon as possible.
John Spellar
Well, that is a very welcome announcement, but I draw the Secretary of State’s attention to the tsunami of job losses now facing us. What industry needs right now is orders to get the lines running. That is not just for the big companies, but the whole supply chain. Does he accept the role of Government, not just as regulator and funder, but also as customer? Too often, the public sector, the civil service, local government and the police, fire and ambulance have, frankly, let British industry and British workers down, claiming they are bound by so-called EU rules. Now we are coming out of the EU, will he get going, shake up the civil service, put British industry first, get the orders out there and get the production lines moving?
Alok Sharma
I do not think there is much more to say. The right hon. Gentleman has made a powerful point.
Paul Howell (Sedgefield) (Con)
Andy McDonald (Middlesbrough) (Lab)
The non-payment of the national minimum wage in Leicester garment factories was shocking, but unfortunately unsurprising. Exploitation in the garment industry has been extensively reported for years, including in a 2019 Environmental Audit Committee report. The cases we know about are likely to be the tip of the iceberg. Given that these abusive working practices are not only criminal, but a threat to public health, will the Secretary of State tell the House what steps he has taken to escalate enforcement in light of the covid-19 pandemic?
Alok Sharma
The hon. Gentleman raises an incredibly important point, and I think we have all been appalled by what we have read and heard. He will know that the National Crime Agency is leading investigations right now into the current set of allegations. He will also know that a pilot operation was run in autumn 2018, bringing together a whole range of agencies. In the past 18 months, there have been more than 200 investigations. I confirm to him that the enforcement of the minimum wage is something that HMRC investigates, and in 2019-20 it has issued across the country 1,000 penalty notices.
Chris Green (Bolton West) (Con)
Jessica Morden (Newport East) (Lab)
Alok Sharma
Bounce-back loans have been a big success; more than 1 million have been approved for businesses. If the hon. Lady has specific issues that she wishes to raise about businesses in her constituency, she should write to me.
Scott Benton (Blackpool South) (Con)
Selaine Saxby (North Devon) (Con)
Alok Sharma
I already have one week of holiday plans and not in her constituency, sadly, but we all need to get out there to visit pubs and restaurants and cafés, which are the heart of our communities. From what I have seen, they are very much adhering to the covid-secure guidance, and that is how we will all enjoy summer safely.
Chris Elmore (Ogmore) (Lab)
Alok Sharma
As the hon. Gentleman will know, we have been supporting the economy across the United Kingdom, to the tune of £160 billion of additional funding announced by the Chancellor. If the hon. Gentleman would like to engage with my ministerial team on particular issues, I would be very happy about that.
James Sunderland (Bracknell) (Con)
Alok Sharma
Like my hon. Friend, I am a firm believer in the Union—in one United Kingdom. The proposals we set out in the UK Internal Market White Paper are all about supporting jobs, protecting businesses and livelihoods, and encouraging investment across the whole UK. I hope that all colleagues across the House will write in support of that as part of the consultation.
Mr Speaker
In order to allow the safe exit of hon. Members participating in this item of business and the safe arrival of those participating in the next, I am suspending the House for three minutes.
Business, Energy and Industrial Strategy
Lord Sharma Excerpts(4 years, 5 months ago)
Ministerial CorrectionsRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Alok Sharma
My hon. Friend raises an important point. The review conducted by Lord Dunlop is, I understand, set to come to the Prime Minister in the autumn. I am sure that we will review it and look forward to it with some interest.
[Official Report, 16 July 2020, Vol. 678, c. 1712.]
Letter of correction from the Secretary of State for Business, Energy and Industrial Strategy, the right hon. Member for Reading West (Alok Sharma):
An error has been identified in the response I gave to the hon. Member for Hazel Grove (Mr Wragg) on 16 July 2020.
The correct response should have been:
Alok Sharma
My hon. Friend raises an important point. The review conducted by Lord Dunlop was, I understand, received by the Prime Minister in the autumn. The Government will be responding in due course.