Vaccine Taskforce

Lord Sharma Excerpts

Monday 20th July 2020 Written Statements

[The Secretary of State for Business, Energy and Industrial Strategy (Alok Sharma)]

I am today updating Parliament on the work of the Vaccine Taskforce in securing a vaccine against covid-19.

Tackling this virus is the biggest challenge that this country has faced in peacetime history. Today I am announcing the recent steps that the Vaccines Taskforce has taken towards making a successful covid-19 vaccine available as soon as possible to the UK population and the wider world.

I can inform the House that we have signed agreements with the BioNTech/Pfizer alliance and Valneva to purchase their vaccines. This is part of our strategy to procure a portfolio of promising vaccine candidates, giving us the best chance of securing a successful one at the earliest opportunity. Demand for a successful vaccine will be high and placing these orders early will give us access to the doses we need if and when any of these candidates prove to be safe and effective in clinical trials and receive regulatory approval.

I am also announcing that the Government have issued a letter of intent in advance of entering an agreement to secure an antibody that may be used as a therapeutic treatment in support of the wider vaccination programme. The antibody, manufactured by AstraZeneca, is currently in clinical trials and could be available for use by the second quarter of 2021, if those trials are successful.

Clinical trials play a vital part in the vaccine development process. Today, the Government are also launching the NHS covid-19 vaccine research registry. This new website will enable people in the UK to volunteer for future vaccine studies planned in the UK, playing their part in our national effort to ensure a covid-19 vaccine is available as soon as possible.

[HCWS387]

UK Internal Market: White Paper

Lord Sharma Excerpts

Thursday 16th July 2020 Commons Chamber

[The Secretary of State for Business, Energy and Industrial Strategy (Alok Sharma)]

For centuries, the United Kingdom’s internal market has been the bedrock of our shared prosperity, with people, products, ideas and investment moving seamlessly between our nations, safeguarding livelihoods and businesses and demonstrating that, as a union, our country is greater than the sum of its parts.

Today, I am publishing a White Paper on the Government’s plans to preserve the UK internal market after the transition period. Since the Acts of Union, the UK internal market has been the source of unhindered and open trade across the country, one which pulls us together as a united country. I know that the right hon. Member for Doncaster North (Edward Miliband) cares as much about our precious union as I do.

Since 1973, EU law has acted as the cohering force for the UK internal market. In 2016, the British people voted to repeal this legislation, allowing us now to articulate the continued functioning of the internal market. The Union’s economic strength is unrivalled. Since the Acts of Union, the size of our economy has multiplied over 170-fold. Successive UK Governments have legislated to share this prosperity and protect workers’ rights—for example, through the introduction of the national minimum wage and now the national living wage, and by providing for more generous holiday and maternity leave than required by the EU. Today we are announcing plans to continue this hugely successful economic Union. We will legislate for an internal market in UK law, as we leave the transition period and the EU’s single market. Our approach will give businesses the regulatory clarity and certainty they want. It will ensure that the cost of doing business in the UK stays as low as possible.

But let me be clear: preserving the coherence of the UK internal market will be done in a manner that respects and upholds the devolution settlements. On 1 January 2021, hundreds of powers previously held by the EU will rightly flow directly back to devolved Administrations in the United Kingdom. For the first time, because of our approach, the devolved Administrations will be able to legislate on a whole range of policy areas. Each nation that makes up our United Kingdom will hold an unprecedented level of powers after the transition period.

To respect devolution and uphold our internal market, we propose to legislate this year. Businesses across the UK will be given a market access commitment. That will be underpinned by the principles of mutual recognition and non-discrimination, which will guarantee that goods and services from one part of the United Kingdom can always be sold into another. The simple principle at the heart of this approach is a continuation of our centuries-old position that there should be no economic barriers to trading within the United Kingdom.

The economies of our four nations, within one United Kingdom, are strongly integrated. At the time of the last census, 170,000 workers commuted daily from one part of the UK to another. Scotland makes over £50 billion of sales per year to the rest of the UK, accounting for over 60% of all exports. Indeed, Scotland sells three times as much to the rest of the UK than to the whole EU put together. About 50% of Northern Ireland’s sales are to Great Britain, and 75% of exports of Welsh final goods and services are consumed in other parts of the UK. In some parts of Wales, over a quarter of workers commute across the border. It is in the clear economic interest of the whole United Kingdom that its internal market continues to function successfully and seamlessly, as it has done for centuries.

As part of our proposals, we will also clarify in law the position that subsidy control is a reserved matter for the whole United Kingdom. This has never been a devolved matter. The Government have been clear that, after the end of the transition period, the UK will have its own domestic subsidy control regime. We will develop our policy proposals on this in due course, consulting widely.

We will only recover from covid by working together. Just over two weeks ago, the Prime Minister set out how we would strengthen the incredible partnership between England, Scotland, Wales and Northern Ireland through our economic recovery. That will be underpinned by a strong UK internal market and avoid the damaging uncertainty for businesses of a fractured economy. It will provide the unquestionable advantages of continued open trade. It will benefit businesses, workers and consumers across the country through lowering trading costs and allowing different regions to specialise in sectors where they enjoy a comparative advantage.

Our proposals are designed for co-operation between all four nations. We invite all devolved Administrations to work together and to agree common approaches to cross-cutting issues such as regulatory standards.

The UK economy has some of the highest standards in the world. We go beyond EU rules in many areas, including health and safety in the workplace, workers’ rights, food, health and animal welfare, consumer protections, household goods, net zero and the environment. We will maintain our commitment to high standards, as we negotiate trade agreements that will provide jobs and growth to the United Kingdom. Through our common frameworks approach, we will support regulatory consistency across our internal market, so if the devolved Administrations seek to agree standards across the UK economy, I say simply this: come and work with us.

The UK internal market is a historic achievement for the United Kingdom, which for 300 years has supported unrivalled economic growth and innovation within our great Union. That has underpinned the best of our United Kingdom’s innovation and prosperity: the Scottish enlightenment, the steam engine, the world’s first vaccine, the telephone, the electric tramway, penicillin, radar, pneumatic tyres, the breaking of the Enigma code, the sequencing of DNA, and the world wide web. As we rebuild and recover from covid, we will work together as one United Kingdom to support jobs and livelihoods across our whole country. We will maintain high standards for consumers, and deliver our commitment to devolution by giving more power to the devolved legislatures. I commend this statement to the House.

[Edward Miliband (Doncaster North) (Lab)]

I thank the Secretary of State for his statement. We support the principle of maintaining the UK’s internal market, which is vital for trade, jobs, and prosperity across the whole United Kingdom. The way the Government go about that has profound implications for whether we drive up standards across the UK, or drive them down, and for whether that issue becomes a source of tension across the four nations of the UK. We believe in our United Kingdom, and there is a big responsibility on the Government to seek to build consensus, and ensure that we do not drive a wedge between our nations or give an excuse to those who wish to do so.

By those standards, there are significant problems in the announcement. On the process, for example, the Welsh Government were promised a draft of this White Paper last March, yet when I talked to the Welsh First Minister yesterday afternoon, the Government had still not shared it with him. That approach does the Secretary of State and the Government no good. On the substance, we should be honest that there is a real challenge regarding how we maintain an internal market without barriers in the UK as we leave the European Union, while at the same time respecting devolution when issues such as food standards and labelling, animal welfare, and other important environmental issues are devolved.

For the past 40 years, including 20 years of devolution, that has been achieved by the EU setting minimum standards, which all four nations had to abide by. The crucial question is not whether we have an internal market, which we need, but how we now set minimum standards to ensure that each nation has a proper voice in doing so, and a means of resolving any disputes that arise. By answering those questions, we can do what we need to do, which is both keep the internal market and respect devolution. Unfortunately, despite the warm words from the Secretary of State, the approach of the White Paper as presented for England, Scotland and Wales appears to be simply to legislate that the lowest standard chosen by one Parliament must become the minimum standard for all.

The risk is that one legislature would be able to lower its food safety standards and animal welfare standards, and force the other nations, which would have no recourse, to accept goods and services produced on that basis— in other words, a race to the bottom. The Secretary of State talks about levelling up, but there is a real risk of levelling down. That is not in the interests of consumers, workers or businesses, and it does not adequately respect devolution. For Northern Ireland, if standards in the UK diverge significantly below those of the EU, there is a real risk that checks on food and other products going from Great Britain to Northern Ireland would increase in parallel.

The Secretary of State must, in the course of this consultation, provide better answers for how we avoid that race to the bottom, so let me ask him four specific questions. First, will he explain what is the mechanism, if any, by which the four nations of the UK will agree minimum standards that respect the voice of each nation? He mentions the common frameworks process and an ongoing process of dialogue, but he must realise that that is superseded by the White Paper, which simply states that the lowest standard among the nations wins. If the framework process is to prevent that danger, how will it be incorporated into legislation?

Secondly, there needs to be a means of resolving disputes that can command confidence. The White Paper states:

“The Government will consider tasking an independent, advisory body to report to the UK Parliament”.

That is far too weak. Surely the Secretary of State must recognise that any independent body, if it is to respect devolution, must be accountable to all four nations, with its functions agreed by all four nations.

Thirdly, the Secretary of State must understand that the anxiety caused by the White Paper is partly due to the gap between the Government’s warm words about raising standards—we heard them again today—and their deeds. They had a chance in the Agriculture Bill to agree that no trade deal would be signed that lowered animal welfare, environmental protection or food safety standards, through an amendment tabled by their own side, but they refused to do so. The spectre of a Trump trade deal that would drive down standards and be imposed on the whole of the UK hangs over this White Paper. For years they have denied that their real agenda is a bonfire of much-needed standards. Great, but if they do not plan to lower standards, why cannot the Secretary of State agree to legally binding commitments?

Fourthly, the state aid rules need to be in place in just five months’ time, but even after this White Paper we still do not know any details about how they will work. Will the Secretary of State tell us when we will get the Government’s plans?

I want to end by saying to the right hon. Gentleman that we absolutely need to maintain the internal market from 1 January, but it is time the Government showed—in deeds, not just in words—their commitment to levelling up, not levelling down. It is time, too, that they showed a desire to build constitutional consensus, rather than risking constitutional conflict, and the White Paper is not a good start. The Secretary of State and the Government must do better in the weeks and months ahead.

[Alok Sharma]

I thank the right hon. Gentleman for his comments and for his support for the principle of the UK internal market. I hope that that is something we will hear echoed across the House as we open up to questions. Let me address some of the points that he has raised. The first thing worth noting is that he talked about anxiety. The real issue at the moment is giving certainty to businesses, so that they know from day one that they are able to operate as they do now within a coherent, seamless internal market. That is what this White Paper proposal absolutely gives them. I have spoken, as I am sure he will have done, to business representatives and organisations over the last 24 hours, and they have told me that this is one big issue off the risk register of companies.

The right hon. Gentleman talked about standards. I would point out to him once again that the UK has some of the highest standards in the world across a whole range of areas. I have listed issues around maternity and paternity pay, around the exclusions and around zero-hour contracts. I say to him once again—I am sure that this issue will be raised by others as well—that we are not going to be compromising our high environmental standards, our high animal welfare standards or, indeed, our high food safety standards in the deals that we do.

The right hon. Gentleman then raised the issue about working together. He will know that the common frameworks programme has been running for some time, and we have had consultations and discussions around that. If colleagues in the devolved Administrations want to have a discussion about standards, that is absolutely the right forum in which to do it. He also mentioned the state aid rules. I know that he will understand the reason that we want to continue to have this as a reserved matter. We want to ensure that there is effectively equality across the whole of the UK and that there are no distortions. I understand his desire for us to set out the details on this, and that will come.

In conclusion, the White Paper gives certainty to businesses. It is about protecting jobs and livelihoods, and about supporting businesses in making their investment decisions. That is good for consumers as well. It is about underpinning our recovery from covid as we seek to work together. I say to all colleagues that this is about businesses and people, not about politicians, and I hope that that is the spirit in which we will conduct the rest of this debate.

[Cherilyn Mackrory (Truro and Falmouth) (Con)]

Nothing is currently more important for our whole United Kingdom than the protection of public health and the support of our economic recovery. Does my right hon. Friend agree that the proposals in the White Paper will ensure that all four nations—indeed, all four corners—of our United Kingdom can overcome this crisis by working together and promoting good co-operation between Westminster and the devolved Administrations?

[Alok Sharma]

My hon. Friend is absolutely right: that is precisely what I want to do. This is a consultation; we are consulting and we want to get people’s views. My door is very much open to having a dialogue and discussion with anyone who wants to come forward.

[Ian Blackford (Ross, Skye and Lochaber) (SNP)]

I thank the Secretary of State for his statement.

What we have seen put forward by the Tory Government is the biggest assault on devolution since the Scottish Parliament reconvened in 1999. It is clear that the Government either do not get Scotland or cannot even be bothered to get it, so let me remind those on the Government Benches that in 1997 more than 75% of Scots voted to establish the Scottish Parliament. The Tories at the time were hostile to the establishment of that Scottish Parliament; they were out of step with Scotland. Plus ça change. Today, the Tories want to strip our Scottish Parliament of its powers.

Let us myth-bust some of the lies that have been circulated this morning. Scotland is not getting 70 new powers. The UK Government say that new powers are coming on animal welfare, energy efficiency and land use; has the Secretary of State not heard? The Scottish Parliament already has those powers: just last month the Scottish Parliament passed a Bill on animal welfare; last year, the Scottish Parliament passed a Bill on forestry; and energy efficiency was part of the Climate Change (Scotland Bill) in 2009, more than a decade ago. We have these powers.

The Secretary of State’s proposal will impose what is being called a mutual recognition regime. The only recognition here is that it is a plan for a race to the bottom on standards. It will mean a reduction in standards in one part of the UK driving down standards elsewhere, even if that is in direct contradiction of the devolved Administrations and their rights and powers.

We all know how desperate this Tory Government are to sell out food standards in return for a US trade deal. There we have it: no new powers and a plan to destroy Scotland’s world-class food and drink standards—not a Parliament in Edinburgh of equals, but one where we legislate only with the approval of Westminster. I have to say to the Secretary of State: this is not a good look. Will he guarantee to the House that these plans will not be imposed on Scotland and that he and his Government will respect, as the Prime Minister often says, the Scottish Parliament’s decisions on them as an equal?

[Alok Sharma]

The right hon. Gentleman talks about understanding Scotland; the one thing that is clear from the statements he has just made is that he certainly does not understand business in Scotland and he certainly does not understand the people of Scotland on this issue. The UK internal market—[Interruption.] The UK internal market is about—[Interruption.]

[Mr Deputy Speaker (Mr Nigel Evans)]

Order. Mr Blackford, I can hear what you are shouting. Please, desist.

[Alok Sharma]

The UK internal market is about preserving jobs across the United Kingdom. It is about making sure that investment can come in, confident in the knowledge that we have a level playing field—an internal market in which businesses can sell services and products across the United Kingdom.

The right hon. Gentleman talks about the powers that will be coming back at the end of this year—at the end of the transition period. It will be the biggest transfer of powers in the history of devolution. I do, though, agree with him that it is not going to be 70 powers coming back to Scotland; I think it is closer to 111. His colleagues in the Scottish Parliament will have an opportunity to set rules and regulations. The problem, of course, is that SNP Members are not interested in that—they are not interested in taking control; they are interested in being ruled by the European Union. The right hon. Gentleman should spend more time talking to businesses and to people whose jobs would be at risk if we did not have this seamless internal market in the United Kingdom.

Finally, the right hon. Gentleman talks about standards. I have already explained to the right hon. Member for Doncaster North (Edward Miliband) that we have some of the highest standards in the world, and we are not going to compromise on that. The right hon. Member for Ross, Skye and Lochaber (Ian Blackford) talks about wanting to have a dialogue. I respectfully remind him that it was the Scottish Government who walked away from the discussion that we were having on the UK internal market last year, so, in the spirit of co-operation, I hold out my hand to him and say, “Let us talk. Let us continue the discussion. Come back to us on the consultation and continue to work with us on the common frameworks programme.”

[Sara Britcliffe (Hyndburn) (Con)]

Will my right hon. Friend assure me that Scotland, England, Wales and Northern Ireland will also see more powers coming back to them as a result of these proposals when the transition period ends?

[Alok Sharma]

Yes, indeed. My hon. Friend is absolutely right: powers will flow back to all the devolved Administrations—around 70 to Wales and around 150 to Northern Ireland.

[Sarah Olney (Richmond Park) (LD)]

This talk of powers being returned disguises the fact that the Government are denying us all here a much more important power—that of scrutinising the trade deals that are struck in our name. The British people used to have this power through their elected representatives in Brussels, but the Trade Bill comes back to the House on Monday and there is no provision in it for this Parliament to have scrutiny of the trade deals that are being struck in our name. Will the Secretary of State accept that trade flows throughout the United Kingdom can best be secured by instituting a robust and respected dispute resolution process, and will he confirm that implementing such a mechanism will be a priority as he progresses his plans?

[Alok Sharma]

I say respectfully to the hon. Lady that she needs to move on. The British people decided that we were leaving the European Union in 2016 and we are implementing that vote.

[Matt Vickers (Stockton South) (Con)]

Scotland sells more to the rest of the UK than it does to the entire rest of the world put together. Does my right hon. Friend agree that preserving the UK’s internal market is vital to protecting jobs, businesses and livelihoods in all four nations of the UK?

[Alok Sharma]

I could not agree more. Modelling shows that Scotland would suffer a GDP loss of four times higher than the UK as a whole from unmitigated differences in regulations.

[Wes Streeting (Ilford North) (Lab)]

When the UK Government seek to strike trade deals with the rest of the world, they need to be able to speak with one voice for the whole United Kingdom, so will the Secretary of State commit in the Bill that he brings forward to making sure that arrangements are in place for proper consultation with all the devolved Administrations and proper scrutiny by this Parliament and the elected representatives of the British people?

[Alok Sharma]

I have just said that the White Paper is indeed a consultation and he, along with everyone else in our country, is able to set out his views.

[Andrew Selous (South West Bedfordshire) (Con)]

On 17 March, the Chancellor said that companies such as Square One in Leighton Buzzard in the events industry

“that have business properties will be eligible”—[Official Report, 17 March 2020; Vol. 673, c. 964.]—

for business rates relief. Local authorities do not seem to have got that message, so will the Business Secretary stick up for the events industry and make sure that what the Chancellor said should happen will happen?

[Alok Sharma]

I thank my hon. Friend for that question. I know that this is a very difficult time for very many businesses up and down the country, and that is why we have supported them with a whole range of measures, including grants and loans that they have been able to get. He will also know that I set out a £617 million discretionary grant fund for local authorities. I hope that local authorities will have used that discretion to support local businesses, but I am happy to take up that individual case if he would like.

[Chris Bryant (Rhondda) (Lab)]

The thing is that there are lots of people who have been excluded from all those. There are about 3 million people who have recently become self-employed or are company directors of small limited companies—people who have not received a single penny from the Government—and their business has really suffered. I just hope that the Government still have something more to say about those people because they are in real financial trouble and they need support now. My local authority still needs £2.5 million to make sure that Tylorstown tip does not fall further into the river, and that is the responsibility of the Westminster Government. Will he please guarantee that that money happens now?

[Alok Sharma]

I completely understand that, as my hon. Friend the Member for South West Bedfordshire (Andrew Selous) and the hon. Gentleman have said, some businesses and individuals are facing real difficulties at this point. We have provided £160 billion-worth of support in the past few months and the Chancellor announced another £30 billion. I say to the hon. Gentleman that through the self-employed scheme we have supported about 2.6 million individuals, and of course businesses are able to get bounce-back loans, more than 1 million of which have been approved. Again, if he has individual cases to raise, I am happy to look at them.

[Mark Menzies (Fylde) (Con) [V]]

I welcome the Secretary of State’s statement on the internal market, but may I press him to ensure that the interests of small food producers, particularly those in Lancashire, are given equal weighting to all these additional powers that have been given to the Scottish Parliament, because we do not want any part of the United Kingdom to be left behind?

[Alok Sharma]

My hon. Friend is right to say that we do not want any part of the UK, or indeed any business across the UK, to be left behind, which is precisely why we have set out our proposals on mutual recognition and non-discrimination.

[Kenny MacAskill (East Lothian) (SNP) [V]]

Words such as “mutual recognition regime” sound benign, yet some 1 million people have signed a National Farmers Union petition and organisations such as the Royal Society for the Prevention of Cruelty to Animals and Compassion in World Farming have expressed their fears, so why should my constituents believe the Minister’s promises of munificence? To paraphrase the old adage, should we beware this time not of Greeks but of the British bearing gifts, less than a Trojan horse but this time for Trump’s America?

[Alok Sharma]

I am not sure how I respond to all that, except to say that the proposal we are putting forward is about protecting businesses and jobs across the whole UK.

[Ms Nusrat Ghani (Wealden) (Con)]

I welcome the Minister’s statement. Does he agree that these proposals will maintain current economic freedoms, which are vital to ensure that all of our nations survive and thrive post covid? This is good news for business and for job security, and, fundamentally, it enables us to level up across our great United Kingdom.

--- Later in debate ---

[Alok Sharma]

Absolutely. As ever, my hon. Friend speaks a great deal of sense. This is about levelling up and making sure there is an equal opportunity for businesses across our country to be able to sell and trade.

[Zarah Sultana (Coventry South) (Lab)]

The Secretary of State talked about the economic recovery after coronavirus, about which my constituents and I have immediate concerns. In the past week alone, more than 8,000 jobs have been lost in the west midlands, manufacturing and higher education sectors have been particularly hit, and in Coventry we fear an unemployment tsunami when the furlough scheme ends. Will the Government extend the furlough scheme on a sectoral basis, invest in green manufacturing in the west midlands, and provide a plan for higher education that protects jobs and funding?

[Alok Sharma]

The Chancellor set out the position on the furlough scheme clearly. As the hon. Lady knows, he announced the job retention bonus. On green jobs, she will also know that in his summer statement he announced an extra £3 billion for energy efficiency in homes and in public buildings, and that will support about 140,000 green jobs.

[Chris Loder (West Dorset) (Con)]

This White Paper, in ensuring the seamless internal market within the UK that this Government are delivering, is an excellent thing, particularly given that we are delivering the democratic will of the people in leaving the EU. Does my right hon. Friend agree that it is particularly good for small and microbusinesses in vast rural constituencies such as mine, where 97% of businesses are small or micro-sized?

[Alok Sharma]

Yes, indeed, because if there were regulatory barriers, for instance, if there were even small differences on things such as food labelling requirements, costs would of course be raised for small businesses, which they ultimately may pass on to consumers. Therefore what we are proposing is good not only for businesses of all sizes, but for consumers.

[John Spellar (Warley) (Lab)]

These structural arrangements are enormously important, but they only go so far because so are political culture and drive to ensure that we get Britain back to work. Yet Government purchasing rules and practice still grovel to so-called EU rules—unlike, incidentally, most other EU countries. Now the Government are free of those rules, when are they going to actively back British business and British workers in England, Scotland, Wales and Northern Ireland? There are no more EU excuses. Act now!

[Alok Sharma]

The right hon. Gentleman, for whom I have enormous respect, as ever makes his case very forcefully. He talks about public procurement, and I look forward to his thoughts as part of the consultation.

[Fay Jones (Brecon and Radnorshire) (Con)]

I warmly welcome my right hon. Friend’s statement. The internal market could not be more important to my constituents. Their businesses and jobs and, crucially, our economic recovery from covid depend on seamless trade throughout the UK, particularly because of the border we share with England. Will my right hon. Friend ignore any hysteria from the Labour party in Wales and press full steam ahead with the Bill, because my constituents will welcome it?

[Alok Sharma]

I thank my hon. Friend for her question. She will also know that almost three times as many intermediate inputs used by businesses in Wales come from the rest of the UK than from the rest of the world put together. That is why it is important that we continue with a seamless internal market, which is good news for her constituents. I would just say to her that I am not prone to hysteria.

[Alyn Smith (Stirling) (SNP)]

The European Parliament, the Court of Justice and the European Commission have 60 years of jurisprudence for how to deal with these issues. The reality is that under the proposals every single power, budget and competence, not just of the Scottish and Welsh Parliaments and the Northern Ireland Assembly but of local government in each of those countries, will be subject to a politically appointed panel that has no jurisprudence whatever. What will be the rights of the Scottish Parliament, the Welsh Parliament and the Northern Ireland Assembly to input people on to that panel, and what dispute resolution mechanisms will they use? If this is not a fair and impartial arbiter, it is a power grab over every single competence that we have.

[Alok Sharma]

Perhaps I can clarify once more, in case it has not been clear enough, that there is no power grab; this is a power surge. We are ensuring that all devolved policy areas stay devolved, and additional powers are returning to the devolved Administrations.

[Craig Williams (Montgomeryshire) (Con)]

I thank my right hon. Friend for his statement and welcome the White Paper. Like thousands of my constituents, my dad and brother work in the building sector and travel to their jobs in England every day. I implore my right hon. Friend to ignore the attempts by the Welsh Labour Government to hold our Union and constitution to hostage over political points, and to crack on with building the single market that is essential to my Welsh constituency.

[Alok Sharma]

My hon. Friend speaks a great deal of sense. As I said at the start of the statement, I want to work co-operatively with colleagues across the devolved Administrations. That is precisely what we have been seeking to do over the past period, and we will continue to do that. I look forward to their representations as part of the consultation.

[Alex Davies-Jones (Pontypridd) (Lab)]

It has been eight weeks since the Prime Minister of this country has bothered to contact the First Minister of Wales—eight weeks during a global pandemic that for many has felt like a lifetime. It has been a lifetime for the hundreds of workers at General Electric in Nantgarw in my constituency, who have just been served redundancy notices due to the lack of support from this UK Tory Government. The 2019 Conservative and Unionist party manifesto stated that the Conservatives were committed to strengthening the Union between all four nations of the UK, but we have actually seen this UK Tory Government completely ride roughshod through devolution. The White Paper is yet another assault on Welsh powers. Could the Secretary of State tell the House precisely when the White Paper was presented to the Welsh First Minister?

[Alok Sharma]

May I just say to the hon. Lady that I want to work collaboratively with all colleagues across all the devolved Administrations? She talks about the First Minister of Wales, and I can tell her that the Secretary of State for Wales has tried on two occasions recently to get a meeting. I think that one was due to take place in the last 24 hours, which unfortunately did not. There may be perfectly good reasons why that did not happen, but my commitment is to speak to my counterparts in Wales, for us from a UK Government perspective to speak to our counterparts and there is a consultation. The hon. Lady should look at the document and then respond.

[Ben Everitt (Milton Keynes North) (Con)]

For centuries, the internal market has ensured that the British people have the right to sell their wares and move freely between any nation in our United Kingdom. Does my right hon. Friend agree with me that we must do everything in our power to protect the status quo and those ancient rights? There must be no border at Berwick. Welsh lamb should be sold in Scotland. English barley should supply Scotch whisky.

[Alok Sharma]

Quite simply, yes. My hon. Friend is absolutely right, and that is why we are putting forward proposals to ensure that we continue with our seamless internal market in the United Kingdom.

[Rachel Hopkins (Luton South) (Lab)]

Since I was elected, many of my constituents have written to me about their concerns for food standards, whether they are people who eat food or even the 20 or so members of the National Farmers Union in my constituency who produce it. In the White Paper, the Government make several references to past action on standards, but the future-focused language is extremely weak. Will the Secretary of State commit to minimum standards, which people can improve on but not go below?

[Alok Sharma]

As I have noted, and as a matter of fact, we have had very high standards when it comes to food safety and animal welfare in the United Kingdom. The best way to ensure that we have the same standards across the United Kingdom is to work together to the common frameworks programme, which is what I would like us all to do.

[Bim Afolami (Hitchin and Harpenden) (Con)]

In this Chamber over the past few weeks, I have heard Members on both sides talking about the need to preserve and create jobs as we recover from covid. There are financial barriers, but there are also regulatory barriers, and these proposals ensure that they do not arise as a result of our leaving the European Union. Does the Business Secretary agree that his proposals will help to preserve jobs throughout every nation in the United Kingdom, and any approach that seeks to fragment our internal market—largely due to ideological obsessions of members of the Scottish National party—would make our jobs recovery after covid harder, not easier?

--- Later in debate ---

[Alok Sharma]

My hon. Friend is right. This is not about ideology; it is about pragmatism and about supporting businesses, supporting jobs and supporting livelihoods. That is why we have put forward these proposals.

[Clive Efford (Eltham) (Lab)]

Many of us are alarmed at the prospect of standards being lowered to allow things such as chlorine-washed chicken to come into our market, particularly as the requirement to wash chicken in chlorine comes from the fact that sometimes the meat is marinated in the animal’s own guano. Some of us would rather avoid the risk of buying such products, so will the Secretary of State ensure that the devolved powers include the right to label food so that we can be warned about the prospects of buying those sorts of products?

[Alok Sharma]

Let me address the point that the hon. Gentleman raises about chicken. He refers to chlorine-washed chicken: as he knows, it is illegal in the United Kingdom, and as a Government—as I have said earlier—we have been very clear that we will not sign up to trade deals that would compromise our high environmental protection, animal welfare and food safety standards. We are a world leader in those areas, and that is not going to change.

[Andrew Griffith (Arundel and South Downs) (Con)]

Does the Secretary of State agree that uncertainty is the enemy of investment, of employment and of consumer confidence? He should like to know that the businesswomen and men that I have been speaking to today have welcomed today’s certainty that goods and services from one part of the kingdom can continue to be sold in another and that employers in one part can continue to provide jobs to residents in another.

[Alok Sharma]

My hon. Friend has had a glittering career in business, and more than some Opposition Members, he understands what uncertainty means for businesses. It means that they do not employ people and they do not invest, and at the end of the day that impacts on the growth of our economy. What these proposals give is that certainty and clarity that businesses want.

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

The unelected body that the UK Government plan to establish will determine whether Bills passed in the Scottish Parliament meet a new test before they can be considered competent. The Minister has described this, in Orwellian fashion, as a devolved power surge. Had this situation existed earlier, it would have prevented Scotland’s smoking ban, minimum unit pricing of alcohol and free tuition. Can he explain why he thinks it is a good idea for a Government who Scotland has rejected to seek to diminish the powers of Scotland’s democratically elected Parliament?

[Alok Sharma]

Let me emphasise once more that all devolved policy areas are going to stay devolved. What is going to happen at the end of this year—the end of the transition period—is that powers will flow back to the devolved Administrations. The hon. Lady talks about minimum alcohol pricing. She will know that the Scottish Government had to fight in the courts to get that through. Under our proposals, they would have been able to make that change.

[Sarah Owen (Luton North) (Lab) [V]]

Vauxhall in Luton proudly produces one of the best-selling vans in all regions and nations in the UK. This is part of the £10.5 billion-worth of goods that are imported into Northern Ireland from Great Britain each year. All this is reliant on frictionless trade. Does the Secretary of State agree that the commitment to frictionless trade across the UK, as set out in the White Paper, is essentially meaningless given that the Government have admitted that the protocol will introduce new requirements on trade between Great Britain and Northern Ireland?

[Alok Sharma]

We published our Command Paper in May, as the hon. Lady knows, and we said in that that there will be unfettered access for goods from Northern Ireland to GB. Certainly, the discussions that I have had suggest that businesses understand that the proposals in the White Paper give them further certainty.

[Mr William Wragg (Hazel Grove) (Con)]

I welcome my right hon. Friend’s statement. It is patently obvious that a Unionist and a nationalist cannot agree on a constitutional settlement, but it is none the less perfectly possible to have constructive conversations and good working relationships through proper channels. With that in mind, will he undertake to speak to his Cabinet colleagues to ensure that Lord Dunlop’s review is published?

[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, 20 July 2020, Vol. 678, c. 11MC.]

[Robert Largan (High Peak) (Con)]

The internal market has long been a cornerstone of our shared prosperity. Does the Secretary of State agree that we are stronger together and that we need to take steps to ensure that Peak district hill farmers can still sell their world-class lamb to all four corners of the United Kingdom?

[Alok Sharma]

I thank my hon. Friend, who speaks up at all times for businesses in his constituency. I agree with him: we are absolutely stronger together as one United Kingdom.

[Charlotte Nichols (Warrington North) (Lab)]

The White Paper states the Government’s intention to develop a replacement for the EU state aid regime. Can the Secretary of State confirm when legislation will be brought forward with regard to state aid, and whether it will be primary or secondary legislation? Does he accept that this needs to provide confidence to the devolved nations by being administered through an independent body as opposed to his own Department?

[Alok Sharma]

I can confirm to the hon. Lady that the new domestic subsidy control regime will be a modern system that will be there to support British businesses in a way that benefits all within the United Kingdom. I know that she is interested in further details on this, and we will share those in due course.

[Dr Ben Spencer (Runnymede and Weybridge) (Con)]

Businesses in Runnymede and Weybridge benefit from access to across the UK by plane, road and rail. Does my right hon. Friend agree that while much focus is given to international trade, seamless internal trade is crucial for our ongoing prosperity across all four nations of the UK?

[Alok Sharma]

My hon. Friend is absolutely right. When companies are looking to invest in the United Kingdom, the fact that we will continue with a seamless UK internal market will give them significant confidence.

[Martyn Day (Linlithgow and East Falkirk) (SNP) [V]]

The 70 so-called new powers for Scotland are in areas that are already devolved. They include matters such as food safety, public procurement and environmental standards, all of which are at the very core of devolution. With Scottish Parliament elections scheduled for next year, does the Secretary of State not agree that it would be a democratic abomination for Scots to have to vote for parties whose policies could only be enacted subject to the provisions of the latest UK race-to-the-bottom trade deal?

[Alok Sharma]

I really do suggest that the hon. Gentleman gets out and talks more to businesses in his constituency. I think that they will tell him that having a unified coherent UK internal market is good news for them and good news for their workers.

[Elliot Colburn (Carshalton and Wallington) (Con)]

I warmly welcome the White Paper. The self-employed are some of the main drivers of economic growth in the United Kingdom, including in Carshalton and Wallington. Some, such as directors of small limited companies, have had concerns throughout the pandemic. What assurances can my right hon. Friend give that the self-employed will continue to be able to thrive and drive economic growth in the internal market?

[Alok Sharma]

As I said in response to an earlier question, we have provided support to 2.6 million people through the self-employment income support scheme, and businesses have been able to make use of the bounce-back loan scheme and the other loan schemes the Government have made available. Small businesses have also been able to take advantage of the £10,000 to £25,000 grants that have been put forward.

[Stephanie Peacock (Barnsley East) (Lab)]

South Yorkshire has nearly 1.5 million residents, so what discussions have taken place with local and regional leaders across England to ensure their concerns about covid-19 support are addressed?

[Alok Sharma]

I do not know whether the hon. Lady asks that in relation to the White Paper we have put forward, but as she will know we have been speaking informally to businesses for a period about the UK internal market. Of course, there is now an opportunity for people to respond more formally to the consultation.

[Kate Griffiths (Burton) (Con) [V]]

I welcome my right hon. Friend’s announcement. Does he agree that stimulating growth and development across our regions is vital to a well-functioning, highly productive economy? Will he work with me and others to see how a north midlands manufacturing corridor could be established to bring the region together and to open up greater opportunities for businesses?

[Alok Sharma]

I would be very happy to meet my hon. Friend and other colleagues in the region to discuss how her region can benefit from the support that the Government have to offer.

[Christine Jardine (Edinburgh West) (LD)]

As Liberal Democrats, we welcome the announcement about internal trade and protecting the market and protecting those who survive in that internal market. However, I ask the Secretary of State to be sure that there is consultation with each of the devolved Administrations and that we have a dispute resolution mechanism for when there cannot be agreement. More than anything else, however, may I please caution the Government that any mistake on this, any suggestion that this is being imposed on the devolved Administrations, will be seized on by our colleagues on the nationalist Benches? That will do damage to the Union, rather than protect and strengthen it, so will he please bear that in mind?

[Alok Sharma]

I hope that the proposals we are putting forward will strengthen the Union and strengthen support for business across the United Kingdom. The hon. Lady talks about consultation. The White Paper is of course a consultation document and I would welcome her thoughts.

[Nickie Aiken (Cities of London and Westminster) (Con)]

I welcome the White Paper. As my right hon. Friend said, our internal markets, which have existed for hundreds of years, support countless jobs across the four nations. Financial services and professional services are a very important sector in my constituency. How does my right hon. Friend see the City of London, in particular, being able to support millions of jobs across the four nations within the internal market?

[Alok Sharma]

My hon. Friend will know that professional qualifications will be covered under mutual recognition, which is good news for service sectors across the United Kingdom, but particularly in the City of London.

[Hywel Williams (Arfon) (PC) [V]]

Thirty-five years ago, in 1985, the then Tory European Commissioner’s White Paper detailed 300 legislative proposals to complete the European single market, and that was with a seven-year deadline. On the UK internal market, this Tory Government are giving a four-week consultation over the summer. That is persuasive evidence, were it needed, that the UK internal market is first and foremost a convenient headline—a veneer lacking detail or a legal basis. Will the Secretary of State concede that the only certainty is that this Bill is a power grab retaining—yes, retaining—vast powers over devolved areas to Tory Ministers?

[Alok Sharma]

No, this is not a power grab. As I have said, this is a power surge to the devolved Administrations. The hon. Gentleman talks about the consultation. I can tell him that the consultation follows the principles for a Government consultation. Yes, it is for a four-week period, but very many people and, in particular, businesses do not routinely close down over the summer. I would say to him that there is an opportunity for him and others to feed in to this consultation. I know this will be important for him and he will do it in a far shorter period time than four weeks.

[Douglas Ross (Moray) (Con)]

Does the Secretary of State agree with me that the nationalist narrative of a power grab has been well and truly burst when not a single nationalist can name a single power that Scotland will lose as a result of this? Indeed, hundreds—more than 100—powers will flow to Scotland on day one. Therefore, does the Business Secretary agree that this is not a constitutional issue, but an economic issue, and anyone standing in the way of this legislation is risking jobs, harming businesses and threatening the economy of our country?

[Alok Sharma]

I could not have put it better myself. My hon. Friend is absolutely right. This is about protecting jobs, protecting businesses and, ultimately, protecting livelihoods. That is why businesses across our country—across the United Kingdom—will welcome these proposals.

[Mr Deputy Speaker (Mr Nigel Evans)]

I would like to thank the Secretary of State for his statement.

Contingencies Fund Advance: Vaccines Programme

Lord Sharma Excerpts

Thursday 9th July 2020 Written Statements

[The Secretary of State for Business, Energy and Industrial Strategy (Alok Sharma)]

I hereby give notice of the Department for Business, Energy and Industrial Strategy’s intention to seek an advance from the contingencies fund totalling £3,360,000 to enable expenditure on the covid-19 vaccines programme to be spent ahead of the passage of the Supply and Appropriation Act.

The funding is urgently required for HM Government to secure manufacturing capability for a possible antibody treatment.

Parliamentary approval for additional resources of £3,360,000 for this new expenditure will be sought in a main estimate for the Department for Business, Energy and Industrial Strategy. Pending that approval, urgent expenditure estimated at £3,360,000 will be met by repayable cash advances from the contingencies fund.

The cash advances will be repaid upon receiving Royal Assent on the Supply and Appropriation Bill.

[HCWS354]

Industrial Development Act 1982: Coronavirus-related Assistance

Lord Sharma Excerpts

Thursday 9th July 2020 Written Statements

[The Secretary of State for Business, Energy and Industrial Strategy (Alok Sharma)]

I am tabling this statement for the benefit of Hon. and Right Hon. Members to bring to their attention spend under the Industrial Development Act 1982. In addition to the obligation to report on spend under the Industrial Development Act annually, the Coronavirus Act 2020 created a new quarterly reporting requirement for spend which has been designated as addressing the effects of coronavirus. This statement is intended to fulfil that purpose.

This report reflects the first quarter of 2020, covering the period from the introduction of the Coronavirus Act 2020 on 25 March 2020 to 31 March 2020.

Spend under the Coronavirus Act2020

Under the Coronavirus Act 2020, there is a requirement to lay before Parliament details of the amount of coronavirus-related designated assistance provided in each relevant quarter.

In the period to 31 March 2020 (from the Act’s introduction on 25 March 2020 to 31 March 2020) 983 loans worth £90.5 million were committed for covid-related purposes by lenders accredited to deliver the coronavirus business interruption loan scheme. Under this scheme, BEIS through the British Business Bank provides an 80% guarantee. The contingent liability incurred was therefore £72.4 million. The actual expenditure to 31 March 2020 was zero.

Actual expenditure of assistance provided by the Secretary of State from 25 March 2020 to 31 March 2020 = £0

All expenditure of assistance provided by the Secretary of State from 25 March 2020 to 31 March 2020 = £0

Contingent liability of assistance provided by the Secretary of State from 25 March 2020 to 31 March 2020 = £72.4 million

All contingent liability of assistance provided by the Secretary of State from 25 March 2020 to 31 March 2020 = £72.4 million

[HCWS351]

Celsa Steel

Lord Sharma Excerpts

Thursday 2nd July 2020 Written Statements

[The Secretary of State for Business, Energy and Industrial Strategy (Alok Sharma)]

I would like to update the House on a commercial agreement that the Government has concluded with Celsa Steel (UK) Ltd.

Since the start of the covid-19 pandemic, the Government have set out a far-reaching package of support to protect jobs and the UK economy. However, in exceptional circumstances, where a viable company of strategic importance has exhausted all other options available to it, the Government has said that we will consider bespoke support on a “last resort” basis.

There is an extremely high bar for making use of taxpayers’ money in this way, and any companies seeking support from the Government should do so only as an absolute last resort.

Such circumstances applied to Celsa, which is a key supplier to the construction industry.

While commercial confidentiality prevents me from setting out detail, I can assure the House that the Government have agreed terms that will protect taxpayers’ money and ensure that the financial burden is shared with the company’s shareholders and lenders.

The Government have agreed legally binding contractual conditions with Celsa on employment, climate change and tax. We have also put in place legally binding conditions on corporate governance, including restraints on executive pay and bonuses. We would expect any company seeking such support from the taxpayer to play their role in our society’s shared endeavours and challenges in the same way.

More broadly, the Government have already taken wide-ranging actions to support the UK steel industry, including more than £300 million in relief for electricity costs since 2013. We have also created public procurement guidelines with annual reports on the proportion of public sector steel bought from British companies, and details of a steel pipeline on national infrastructure projects worth around £500 million over the next decade.

This agreement achieves a positive outcome and secures over 1,000 jobs, including more than 800 positions at the company’s main sites in South Wales.

We want to praise the commitment of Celsa’s workforce and management. Our focus is now on working with all parties to secure the company’s future success, as well as ensuring that the loan is repaid and Celsa continue to deliver employment, climate change, corporate governance and tax commitments.

[HCWS332]

UK Research and Development Roadmap

Lord Sharma Excerpts

Wednesday 1st July 2020 Written Statements

[The Secretary of State for Business, Energy and Industrial Strategy (Alok Sharma)]

Today, the Government are publishing the “UK Research and Development Roadmap”.



The roadmap sets out the Government’s vision and ambition to bolster the UK’s world-class credentials in research and development.



The Government’s long-term objectives for R&D are clear: to be a science superpower and invest in the science and research that will deliver economic growth and societal benefits across the UK for decades to come and to build the foundations for the new industries of tomorrow.



This was supported by the unprecedented commitment at the March 2020 Budget to increase public investment in R&D to £22 billion by 2024-25. This followed the Queen’s Speech, where the Government committed to “making the UK a global science superpower that attracts brilliant people and businesses from across the world”.



Research and development will be critical to a swift economic and social recovery from the impacts of covid-19, for a greener, healthier and more resilient UK. Our goal is to further strengthen science, research and innovation across the UK, making them central to tackling the major challenges we face, including achieving net zero carbon emissions, building resilience to the impacts of climate change, closing the productivity gap and embracing the transformative potential of new technologies to improve the quality of life.



We can only make the most of the UK’s science superpower strengths by working with partners in government, academia, industry and charities across the UK. The roadmap marks the start of a conversation on what actions need to be taken and how to ensure our R&D system is fit for purpose now and for the future.



We are engaging with the devolved Administrations and other Departments to ensure this is a cross-government and UK-wide discussion and will be undertaking a broader programme of engagement in the run-up to the spending review this autumn.



The “UK Research and Development Roadmap” document will be placed in the Libraries of both Houses.

[HCWS326]

Business and Planning Bill

Lord Sharma Excerpts

2nd reading & 2nd reading: House of Commons
Monday 29th June 2020 Commons Chamber

[The Secretary of State for Business, Energy and Industrial Strategy (Alok Sharma)]

I beg to move, That the Bill be now read a Second time.

Covid-19 has had a profound impact across the economy. It required many businesses to shut their doors on 23 March, and they have taken a significant economic hit to protect the public’s health, so it was vitally important, at the start of this pandemic, that we put our arms around businesses to provide them with support to protect our people’s livelihoods at the same time as we protected our nation’s health.

So far, the job retention scheme has supported over 9 million jobs; 2.6 million people have been helped by the self-employment scheme; over 850,000 small businesses have benefited from around £10.5 billion in grants; and over £40 billion of Government-backed loans have been made to over 970,000 businesses. Every one of these interventions has helped individual families in each of our constituencies, but we are now reopening the economy in a cautious and phased manner, and the measures in the Bill are designed to provide a boost to businesses to help them as they look to bounce back from a period of enforced hibernation.

On 25 June, the Corporate Insolvency and Governance Bill received Royal Assent, and I thank the right hon. Member for Doncaster North (Edward Miliband) and all colleagues for their support in an expeditious passage for that Bill. Similarly, I hope we will be able to expedite the passage of the Business and Planning Bill. I acknowledge the very constructive discussions that we have had on the individual measures in the Bill with the shadow Secretary of State and, indeed, all shadow Ministers.

The overall aim of the Bill is to provide an adrenaline boost to key sectors of our economy. We want to support the hospitality sector by allowing outdoor dining and off-premises sale of alcohol, helping the sector back on its feet with the promise of al fresco dining for all this summer.

[Jonathan Gullis (Stoke-on-Trent North) (Con)]

Does my right hon. Friend agree that the measures allowing al fresco dining are essential to allowing the food and hospitality sector to bounce back following lockdown, and will he encourage all those businesses to go and update their ceramics and buy purely from Stoke-on-Trent?

[Alok Sharma]

My hon. Friend makes a compelling case for his constituency, and he makes an equally important point that this is an opportunity to get businesses going—up and running—after a period of enforced hibernation.

[Sir Edward Leigh (Gainsborough) (Con)]

We are all very grateful for my right hon. Friend’s efforts, particularly to help small businesses. I have noticed in Lincolnshire that small businesses and shops seem to have done better during the lockdown, as people have wanted to shop locally. As we are helping small business, would it not be a retrograde step if we were to reopen Sunday trading laws, since it is our present Sunday trading laws that do so much to protect small shops and businesses from large businesses and supermarkets?

--- Later in debate ---

[Alok Sharma]

As my right hon. Friend will know, measures related to Sunday trading are not in the Bill, but of course Sunday trading has been temporarily relaxed in the past, during the Olympics, and that was about ensuring support for businesses and consumers. But as I said, that is not in the Bill.

Through this Bill, we also want to support the construction sector to get Britain building again by enabling the extension of site operating hours and extending until 1 April 2021 planning permissions that have lapsed or will lapse between 23 March and 31 December.

[Katherine Fletcher (South Ribble) (Con)]

Does my right hon. Friend agree that construction is vital to getting our economy going, including in South Ribble, where my constituents are looking forward to the new Tesco’s in Penwortham? For that reason, I welcome these measures. Does he agree that they are vital to supporting growth as we come out of lockdown?

[Alok Sharma]

My hon. Friend makes an important point. I know she is working incredibly hard to support businesses in South Ribble, and I am sure she is looking forward to going to the Tesco’s once it is up and running.

We also want to support the transport sector by enabling shorter-term licences for drivers of heavy goods vehicles and passenger carrying vehicles and allowing for the risk-based testing of HGVs and public service vehicles. These measures will allow goods and public transport to keep moving. We want to continue to support small and medium-sized enterprises through the quicker delivery of bounce-back loans, which have provided a financial lifeline for more than 920,000 small businesses so far. This measure is retrospective and will disapply elements of consumer credit law.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

I speak as co-chair of the all-party group on fair business banking and support the suspension of the Consumer Credit Act 1974 with regard to bounce-back loans due to affordability issues, but does the Secretary of State agree that it is vital that lenders still comply with the requirement to treat customers fairly in the collection process or if there are debt issues later on and that forbearance is applied?

[Alok Sharma]

As ever, my hon. Friend raises an incredibly important point. Yes, forbearance is part of these measures, and we would expect that very much to apply.

Before I turn to the detail of the Bill, I want to thank all those across industry and both Houses who have engaged with the Government to help develop the measures in the Bill. I also thank the Local Government Association, the National Police Chiefs’ Council, the Home Builders Federation and the British Property Federation for sharing their expertise. I am pleased to say that the measures in the Bill enjoy wide stakeholder support. The LGA, the Federation of Small Businesses, the British Beer and Pub Association, UKHospitality, the Freight Transport Association, the Road Haulage Association, the Royal Town Planning Institute, the British Property Federation and UK Finance have all expressed their support.

[Huw Merriman (Bexhill and Battle) (Con)]

I add my name to that long list, but can my right hon. Friend give some confidence to local authorities? There are a lot of planning rules and regulations, and some of our planning officers are quite conservative in their interpretation. Where there is discretion, can we send the message out from this place that decisions must be decided in favour of business and of opening up?

[Alok Sharma]

Of course we want to make sure that businesses open up, and we want local authorities to help local businesses do that, which is precisely the reason for these measures. We will publish guidance alongside the measures in the Bill, and I would ask local authorities to adhere to it. If my hon. Friend has any specific suggestions, I would be very happy to hear from him, as would my right hon. Friend the Secretary of State for Housing, Communities and Local Government, who will wind up this debate.

[Greg Clark (Tunbridge Wells) (Con)]

My right hon. Friend is making a compelling case for giving a boost to many sectors of the economy, but will he reflect on the fact that some sectors will not be able to reopen because of the necessary rules? I am thinking of theatres, concert venues and other music venues. Given the need to adhere to the rules, will he make special provision for those that cannot trade their way out of difficulty?

On the point that my hon. Friend the Member for Bexhill and Battle (Huw Merriman) made, it would be very unfortunate if any of these venues, theatres or concert halls fell into insolvency, and we hope to avoid that, but in doing so we should guard against granting planning permissions that take them immediately out of those very valued uses. Will my right hon. Friend reflect on both during the passage of this Bill?

[Alok Sharma]

My right hon. Friend, who has previously served as Business Secretary with great distinction, raises a number of important points. On insolvency, he will know that with the support of both Houses, we passed the Corporate Insolvency and Governance Act 2020, which came into effect on 25 June. When it comes to providing support to businesses, I think the best thing we can possibly do is to open them up, and I know that that is a sentiment that he will appreciate as a former Business Secretary. I would love to be able to have the whole economy operating and opening up, but we all understand why we are taking a phased and cautious approach: we want to continue to meet our five tests, and we want to ensure that the R value stays below one. In the tourism sector and the theatre sector, which he mentioned, ministerial colleagues are working closely on these issues.

I turn first to the temporary measures in the Bill to step up the recovery of our hospitality sector. Our 127,000 pubs, restaurants and cafés, which employ around 2 million people, are the lifeblood of our high streets and town centres. Social distancing guidelines significantly affect their capacity to accommodate customers, and food and beverage service activity has fallen by nearly 90% in the last quarter. The Bill introduces a temporary fast-track process for pubs, cafés and restaurants to obtain local council permission to place tables and chairs on the pavement outside their premises.

[Anthony Mangnall (Totnes) (Con)]

I spent my weekend in Dartmouth speaking to some of those businesses in the hospitality and tourism trade. May I associate myself with the words of my hon. Friend the Member for Bexhill and Battle (Huw Merriman) about making sure that councils are not over-zealous in their approach to allowing businesses to adopt the measures in the Bill for outdoor dining? I think it is very important that we can give those businesses reassurance.

[Alok Sharma]

Of course my hon. Friend makes an important point, but I think local authorities will understand that it is in their self-interest to ensure that businesses can open and that high streets flourish. I certainly encourage businesses to look at the guidance and adhere to it.

[Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)]

In my borough, licensed premises are a very important part of the local economy, and we work with local residents to support them. This measure, with seven days’ notice, allows an enormous amount of off-sales, which are already causing havoc in my constituency with people defecating, urinating and leaving problems in parks. People are talking about fake Glastonbury. This is going to cost my borough a lot of money to police. We are not party poopers, but we do not want the other sort of pooping, either. Will the Secretary of State make provision to allow councils some discretion where there is a particular problem with a licensed premises causing antisocial behaviour?

[Alok Sharma]

Ultimately, it is possible to revoke these permissions, and expedited processes have been put in place. Nobody wants to see bad behaviour, but this is a 10-day process, and there is an opportunity in the first five working days for anyone to put in their views to the local authority. Ultimately, the local authority decides. There is also a clear requirement that a legible notice is put up at the premises, so anyone who is in the locality will be able to see it when they pass by, and they can make representations if they wish. These new measures will cut the time to receive approval for this licence from an average of 42 working days to just 10 working days, and the application fee is capped at £100.

Public safety and access for disabled people using pavements is of course absolutely vital, so I can confirm that local authorities will be able to refuse or revoke licences where appropriate. The Government will be publishing minimum requirements and guidance for footway widths and distances required for access by disabled people.

[Matt Western (Warwick and Leamington) (Lab)]

The Secretary of State spoke earlier about the organisations that he has consulted. Has he engaged with, say, the Guide Dogs for the Blind Association to understand the sorts of risks and challenges that people with sight loss face? We have a centre for guide dogs in my constituency. This is a real issue for these organisations.

[Alok Sharma]

I can confirm that we have engaged with disability groups in the preparation of the clauses in this Bill.

We will also be making changes to alcohol licensing. Currently, any licensee wishing to add off-the-premises sales permission has to apply for a licence variation. This takes time, with a 28-day notice period, adverts placed, and sometimes a hearing. Ordinarily, of course, that is necessary. However, hospitality businesses are not operating in ordinary economic times, as we all acknowledge, so the Government are temporarily changing the process. Under the measures in this Bill, most licences will automatically and temporarily be extended to include off-the-premises sales. However, there are safeguards in place. The extension will not include premises that have been denied off-sales permission or had it removed within the past three years. Taken together, these measures will help our hospitality industry to get back to business over the busy summer months.

[Meg Hillier]

Has the right hon. Gentleman given any thought to allowing a review of this Bill, because—I am particularly talking about the hospitality industry—it will be coming into operation over a busy summer period, and we will see the effects of that? If he were to agree to a three-month review period where we, as a House, can see the evidence and then, if necessary, amend legislation, that would be a welcome step.

[Alok Sharma]

First, these are of course temporary measures. A 90-day rolling review, which I think the hon. Lady is proposing, would undermine the certainty that we are giving businesses in terms of these particular measures. She will know, however, that should the Government wish to extend any of the measures, they will be subject to made affirmative or draft affirmative procedures, so they will come before the House before there is any opportunity to extend them further.

I now return to the issue of trying to get the construction sector moving. In 2018, this sector represented almost 9% of our GDP. Lockdown has had a profound impact on construction sites across the country. We estimate that almost 1,200 unimplemented major residential planning permissions, with capacity to deliver over 60,000 homes, have lapsed or will lapse between the start of lockdown on 23 March and 31 December this year. Therefore, the Bill introduces powers to extend these planning permissions and listed building consents to 1 April 2021. This will be automatic for permissions that have not lapsed at the point that these measures come into force. Lapsed permissions can be reinstated and can benefit from the same extension, but subject to necessary environmental approvals.

We will also make it quicker for developers to apply for longer construction site working hours. This will help to facilitate safe working—for example, by staggering workers’ hours—and to make up for lost progress. Applications will be concluded within 14 days. This measure does not apply to applications from individual householders. Local authorities retain discretion and can refuse applications where there would be an unacceptable impact. Again, this is a temporary measure. Extended hours can only last up until 1 April 2021, unless extended by secondary legislation.

[Richard Fuller (North East Bedfordshire) (Con)]

Across my constituency, there is already tremendous local sensitivity about excessive developments, the planning process and some of the procedures for public participation in the process being curtailed—there are virtual meetings and sometimes council executives make decisions on their own. Will the Secretary of State assure me that the Bill will not limit public participation in anything that might be the result of an extension or expansion of existing planning permission or indeed a new planning permission?

[Alok Sharma]

No, it will not. I will talk a bit about hybrid appeal proceedings, and I think my hon. Friend will find that helpful.

There are two further planning measures that relate to the new spatial development strategy for London and hybrid appeal proceedings. The Mayor of London will shortly publish the new spatial development strategy, setting out plans for new homes for London. The Bill temporarily removes, until 31 December, the requirement for the strategy to be available for physical inspection and to provide hard copies on request. That ask from the Mayor of London will help to address practical challenges from social distancing.

Social distancing has also constrained the Planning Inspectorate’s ability to conduct hearings and inquires, and a backlog has been growing. Through the Bill, we will enable the inspectorate to combine written representations, hearings and inquiries when dealing with appeals. That change was recommended by the independent Rosewell review. A recent pilot undertaken on the review measures reduced average decision-making time from 47 weeks to 23 weeks.

[Jim Shannon (Strangford) (DUP)]

The Secretary of State mentioned 60,000 houses that big companies will be able to build, but does he recognise that small and medium-sized companies that do refurbishments, extensions and small works are critical to the core of the economy? Will he ensure that they can also progress their applications through councils for approval? They may be sitting on the line where that may not happen.

[Alok Sharma]

As I said, these measures will not relate to residential applications that have been made. The whole point is to get the construction sector moving. I have talked about a range of measures that we have set out for the sector, and I hope that more SME builders will be able to take advantage of them.

The Bill will enable lenders to continue issuing bounce-back loans quickly and at scale. It will retrospectively disapply the unfair relationships provisions in the Consumer Credit Act 1974 for lending made under the scheme. Reflecting current circumstances, the bounce-back loan scheme allows lenders to rely on self-certification from the business that it meets the eligibility criteria for the scheme and can afford to pay back the loan. It also provides for simpler information disclosure requirements to the borrowers. That will ensure that small businesses can continue to access the financial support that they need without undue delay.

[Richard Fuller]

I am very grateful to the Secretary of State for giving way. I want to take him back to the point about public participation, because it is such a sensitive area. He said that in clause 20, the procedures for planning proceedings can be altered. Either now or in Committee, can he clarify who will be making those decisions and what impact that will have on public participation in relation to housing developments that might have a dramatic impact in the area? I want to be clear about whether the Bill will affect that dramatically.

--- Later in debate ---

[Alok Sharma]

The Minister for Housing, my right hon. Friend the Member for Tamworth (Christopher Pincher), will deal with the details of that. The point of these measures is to get the economy going, which my hon. Friend the Member for North East Bedfordshire (Richard Fuller) is keen to do. I understand his point, and we will address it in Committee.

The Bill temporarily allows the issuing of one-year lorry or bus driving licence renewals, rather than the standard five years. Shorter renewals will be allowed if an applicant is otherwise healthy but unable to obtain the medical report required for a five-year licence. That will relieve pressure on GPs and allow drivers to continue to work. The Bill also reforms powers to exempt temporarily goods vehicles, buses and coaches from roadworthiness testing. That will allow the high demand for heavy-vehicle testing, which restarts from 4 July, to be managed in a manner that prioritises road safety by targeting higher-risk vehicles or operators.

In conclusion, the Government have stood shoulder to shoulder with businesses throughout the covid-19 emergency and now, as we emerge from this pandemic, we need to support our economic recovery and help businesses with more flexible ways of working. The great British economy, helped by a willing public, is reawakening from its enforced slumber. Taken together, the measures in the Bill are designed to provide a much-needed economic boost, and I commend it to the House.

Business Update

Lord Sharma Excerpts

Monday 29th June 2020 Written Statements

[The Secretary of State for Business, Energy and Industrial Strategy (Alok Sharma)]

The UK’s world-class research and researchers play a vital role in delivering local and national economic prosperity but we recognise that some of that research is at risk from a range of income losses as a result of covid-19. That is why the Government are announcing today a package to support universities to continue research and innovation activities.

First, around £280 million of Government funding will be made available to universities and research organisations impacted by coronavirus for grant extensions. The first amounts will be made immediately available and will provide additional resource and flexibility to sustain grants funded through UK research and innovation (UKRI) and the national academies and affected by the covid-19 pandemic, allowing them to continue developing existing ambitious and innovative research projects. This funding includes supporting researchers’ salaries and other research costs such as laboratory equipment and fieldwork. UKRI will contact universities and research organisations with details of their grant extension allocation shortly.

Secondly, from the autumn, the Government will demonstrate their commitment to research by providing a package of support to research-active universities, consisting of low-interest loans with long pay-back periods, supplemented by a small amount of Government grants. In sharing responsibility for the future of science and research with our world-leading university system the Government will cover up to 80% of a university’s income losses from international students for the academic year 20-21, up to the value of non-publicly funded research activity in that university.

We expect the level of support being provided to go a significant way to addressing reductions in research income. The second part of this package will be targeted towards sustaining research and innovation activity and capacity in universities across the UK. Universities will need to demonstrate that funding is being spent on research activity and on sustaining high quality research capacity and capability, with a particular emphasis on STEM research and areas of research typically funded by charities and businesses. This funding will be available to bolster those universities who are taking their own steps to make efficiencies, in line with the rest of the economy, to protect their research bases.

We recognise that universities will want to use this funding to protect areas of medical research that have been developed in part with support of charities. Charity-funded research has been a distinctive feature of the UK research system and a successful partnership with Government through the charity element of QR. Now is the time to align that partnership as a more sustainable element of the research system.

The support made available to individual institutions through the second part of this package is subject to the conditions set out in the explanatory notes on gov.uk and the final details of the proposal will be subject to business case approval. Government will develop the details of this support package, including further conditions, working with the sector over the weeks ahead.

Our research base helps to deliver higher levels of productivity and anchor research and development-intensive companies to the UK, and we will continue to be a welcoming and world class destination for international students and researchers, now and into the future. Government have already undertaken communications activity to promote UK higher education to international students, appointed Sir Steve Smith as the international education champion and introduced a range of visa flexibilities for current and prospective international students. This is all with a view to ensuring we maintain the UK’s ability to attract students from all around the world.

Alongside this, DFE is continuing to work with BEIS, HMT and other Government Departments to develop a process through which higher education providers at risk of closure will be able to apply to Government to access a restructuring regime as a last resort. Government will review providers’ circumstances and assess the need for restructuring where there is a case to do so. Where action is required, this will come with attached conditions. The Government will work with the devolved Administrations on this approach. More detail will be made available in due course.

[HCWS322]

Business Update

Lord Sharma Excerpts

Monday 22nd June 2020 Written Statements

[The Secretary of State for Business, Energy and Industrial Strategy (Alok Sharma)]

Today, the Government will lay two separate pieces of secondary legislation to amend the Enterprise Act 2002. The first will allow the Government to intervene in qualifying mergers, including acquisitions, to maintain UK capability to combat and mitigate the impact of public health emergencies.

The second will lower the thresholds for intervention in mergers on public interest grounds for three sensitive sectors of the economy, intended to address any national security risks that may arise related to these sectors.

The Enterprise Act 2002 (Specification of Additional Section 58 Consideration) Order 2020

The Enterprise Act 2002 (Specification of Additional Section 58 Consideration) Order 2020 introduces a new public interest consideration for Government intervention in mergers and acquisitions. This new public interest consideration allows the Government to intervene in mergers involving businesses with a role in combating or mitigating the impacts of public health emergencies, such as the current COVID-19 pandemic.

The economic disruption caused by the pandemic may mean that some businesses with critical capabilities are more susceptible to takeovers—either from outwardly hostile approaches, or financially distressed companies being sold to malicious parties.

These new powers will enable the Government to intervene if a business that is directly involved in a pandemic response, for example, a vaccine research company or personal protective equipment manufacturer, finds itself the target of a takeover.

As this instrument is subject to the made affirmative procedure it has been made today and will come into effect tomorrow.

The draft Enterprise Act 2002 (Share of Supply Test) (Amendment) Order 2020

The draft Enterprise Act 2002 (Share of Supply Test) (Amendment) Order 2020 will amend the Secretary of State’s powers to scrutinise mergers in three sensitive sectors of the economy on public interest grounds: artificial intelligence, cryptographic authentication technology and advanced materials. These changes are intended to address any national security risks that may arise relating to these sectors. The Government made similar changes in 2018 for three other critical sectors: military/dual-use technologies, computing hardware and quantum technology.

Separately, the Government will lay an accompanying instrument, the Enterprise Act 2002 (Turnover Test) (Amendment) Order 2020, which will be subject to the negative resolution procedure. Together, these two instruments will add the enterprise categories to a list of ‘relevant enterprises’ which are subject to lower intervention thresholds. The turnover test for intervention in these sectors will be lowered to £1 million; and the ‘share of supply’ will be met where an enterprise supplies at least one quarter of all goods of a particular description and there is no longer a requirement for a merger to increase the share of supply.

These orders will therefore allow the Government to intervene on public interest grounds when smaller companies in these critical sectors might be vulnerable as a consequence of a merger or takeover. They will send an important signal to those seeking to take advantage of those struggling as a result of the pandemic that the UK Government are prepared to act where necessary to protect our national security.

I will also be placing copies of the non-statutory guidance relating to these amendments in the House Libraries.

[HCWS305]

Oral Answers to Questions

Lord Sharma Excerpts

Tuesday 16th June 2020 Commons Chamber

[Aaron Bell (Newcastle-under-Lyme) (Con)]

What steps his Department is taking to support businesses facing insolvency.

[The Secretary of State for Business, Energy and Industrial Strategy (Alok Sharma)]

Mr Speaker, may I join you in your words about our former colleague, Jo Cox?

We have introduced the Corporate Insolvency and Governance Bill to help companies maximise their chances of survival. The Bill introduces new corporate restructuring tools and temporarily suspends part of insolvency law to help businesses keep trading.

[Chris Clarkson]

I thank my right hon. Friend for that answer. I was proud to make my maiden speech on Second Reading of that very important Bill, which will provide vital safeguards during the coronavirus pandemic. Can he tell me what benefits it will have for businesses, not just in my constituency of Heywood and Middleton and across the north-west but in the wider country?

[Alok Sharma]

My hon. Friend is proving to be a real champion for businesses in his constituency, and he raises an incredibly important point. The impact assessment of the Bill’s measures suggests that the three permanent changes to the UK insolvency framework will result in net benefits to business of over £1.9 billion in today’s prices, which is a much needed boost for businesses at this uncertain time.

[Aaron Bell]

I welcome the Secretary of State back to the Dispatch Box after his recent illness. Businesses in Newcastle-under-Lyme and across the country face the risk of insolvency, especially those with business models that are dependent on socialising. In addition to what he has set out, which I welcome, can he tell us what Companies House proposes to do to support businesses at threat of insolvency?

[Alok Sharma]

My hon. Friend raises an important point, and this is part of the Bill. While Companies House has extended the period for filing accounts, we will give businesses the maximum period available under the powers in the Corporate Insolvency and Governance Bill for filing their accounts, confirmation statements and event-driven updates. At a time when many companies are focused on surviving, that will be very welcome respite.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

Mr Speaker, may I echo your sentiments on the tragic loss of Jo Cox?

Businesses facing insolvency will be under further pressure with the premature end to the furlough and self-employed schemes, and loan schemes are of little help, because they simply add to a pile of debt. Does the Secretary of State agree that the sectors hit hardest by covid-19 need long-term support to survive and rebuild, which means extending the furlough scheme and support loans being written off or converted to equity?

[Alok Sharma]

The level of support we have provided across the economy is incredibly favourable by any international comparison. The furlough scheme will be in place for a full eight months. That is precisely the support that we have been very keen to give to businesses.

[Drew Hendry]

Tourism is worth £10.5 billion to the Scottish economy, and before the pandemic it provided 8% of jobs. While some businesses will soon be able to reopen outside areas, vital public health rules and consumer sentiment will mean that most activity is subdued. Will the Secretary of State follow the Scottish Government by setting up a tourism taskforce and use his Government’s reserve powers to cut VAT for tourism and other sectors, to help firms that are at risk of insolvency?

[Alok Sharma]

As I am sure the hon. Gentleman will know, my right hon. Friend the Secretary of State for Digital, Culture, Media and Sport is working with the tourism sector, and there is regular dialogue with it. I recognise the concerns that he has raised about this sector, which is closed, but that is why we have provided particular support through a rates holiday for hospitality businesses.

[Ian Paisley (North Antrim) (DUP)]

What steps he is taking to develop hydrogen technology in the UK.

--- Later in debate ---

[Jeremy Wright (Kenilworth and Southam) (Con)]

What steps his Department is taking to support businesses during the covid-19 outbreak.

[The Secretary of State for Business, Energy and Industrial Strategy (Alok Sharma)]

The Government have introduced an unprecedented package of support. This includes grants for small businesses, a rates holiday for businesses operating in the retail, leisure and hospitality sector, a range of loan schemes covering all sides of businesses, the furlough scheme, the self-employment scheme, and a range of tax deferral schemes, all designed to help businesses through this very challenging time.

[Chris Green]

I thank my right hon. Friend for his answer. Brian and Karen Tinniswood run the Provenance restaurant in Westhoughton, but they have a deep concern about social distancing, which makes it impossible to reopen their restaurant. What consideration has my right hon. Friend given to reducing social distancing from 6 feet to 3 feet, then getting rid of it altogether?

[Alok Sharma]

The issue that my hon. Friend raises is raised with me regularly by businesses, and I completely understand the economic rationale that his constituents have outlined to him. As he will know, a review is taking place, and we will wait to see its results.

[Douglas Chapman [V]]

The OECD predicts that the UK recession will be the worst in the developed world. The Federation of Small Businesses in Scotland has issued a similarly depressing assessment. In terms of supporting Scottish business, what have been the key asks of the Department from the Secretary of State for Scotland?

[Alok Sharma]

I have detailed discussions with all Cabinet and ministerial colleagues. I recognise the challenge ahead of us—there is no doubt about that—but we have provided a significant amount of support for the UK economy, and if that had not been put in place a range of independent commentators have made it clear that we would be in a far worse position.

[Dr Wallis]

The automotive sector is important to my constituency of Bridgend, as it is to the whole UK economy. Will my right hon. Friend outline what the Government are doing to help businesses in that sector recover from the impact of covid-19?

[Alok Sharma]

I have set out the full range of support available to all sectors across the economy, and the automotive sector can take full advantage of that. I would point out that the job retention scheme has been widely utilised by the automotive sector, with a recent survey by the Society of Motor Manufacturers and Traders showing that the scheme has been accessed for over 60% of full-time workers in the auto sector.

[Alison Thewliss]

A number of businesses in my Glasgow Central constituency find themselves blocked from claiming under the job retention scheme as a result of the deficiencies of Her Majesty’s Revenue and Customs uploading real-time information before the outbreak. Will the Secretary of State take up that matter with HMRC and the Treasury, ask for discretion, and make sure that no business that would otherwise be eligible has to lay off valued staff or, worse, go bust, as businesses in my constituency cannot wait any longer?

[Alok Sharma]

We want to support businesses, and I have set out a range of measures that we have put in place. The hon. Lady referred to a matter that ultimately is for HMRC and Her Majesty’s Treasury, but I am happy to have a discussion with her after questions.

[Tom Randall]

A few weeks ago, I was pleased to visit Arnold market in my constituency and it was great to see that it was operating very well under the new guidelines. As the wider high street is now beginning to reopen, can my right hon Friend tell me what support his Department will be giving to shops as they reopen?

[Alok Sharma]

I thank my hon. Friend for doing his bit to support businesses in his constituency. In coming up with the workplace guidance, which has allowed businesses to open safely, we have worked closely with businesses, business representative organisations and trade unions. I have already outlined the support that we have provided for the sector, but what we all need to do is to get out there to support businesses that are now opening. We owe that to them and to the economy to get it going again.

[Sir Desmond Swayne]

What is available for those fast-growing firms that rely on equity finance and for which loans and grants have not been a good fit?

[Alok Sharma]

What an intelligent question. On 20 April, my right hon. Friend the Chancellor announced a package of support worth £1.25 billion for fast-growing innovative companies and that, of course, included £750 million in grants and loans delivered through Innovate UK, and a £500 million future fund, through which the Government will invest up to £5 million per company, matched by the private sector.

[Jeremy Wright]

As my right hon. Friend adapts support for businesses, will he keep very much in mind those important sectors of the economy such as tourism and the creative industries that will need longer to recover and more notice of guidance changes? Will he recognise, as I am sure the Under-Secretary of State for Business, Energy and Industrial Strategy, my hon. Friend the Member for Stratford-on-Avon (Nadhim Zahawi), will have told him, that in places such as Warwickshire those sectors are mutually reinforcing and very important not just to the local economy, but to the income of local authorities?

[Alok Sharma]

My right hon. Friend, I know, has been engaging with businesses through virtual networks across Warwickshire, and I thank him for the work that he is doing locally. What I would say to him is that, of course, we have ensured that loan schemes are available across the economy. Smaller businesses in hospitality, leisure and retail have been able to access a £25,000 grant. The key issue is to have a safe and phased reopening of the economy to get it going again, which is what we are currently undertaking.

[Edward Miliband (Doncaster North) (Lab)]

I join you today, Mr Speaker, in both mourning and remembering Jo Cox.

I welcome much of the help that the Government have provided, but, according to Make UK, we could see the loss of 170,000 manufacturing jobs this year. In France, steel got loans within 10 days of applying for them, and aerospace is benefiting from billions of pounds of support, including for low-carbon engines. Here, three months after the crisis began, 60% of companies that have applied for large loans are still waiting and there has been no targeted help for our manufacturers. Will the Secretary of State tell us when specific help will actually materialise for sectors such as steel and aerospace?

[Alok Sharma]

I do welcome the constructive tone in which we have approached our exchanges over the past few weeks, but what I would just say to the right hon. Gentleman is that if he looks at the sum total of what this Government are providing, he will find that it is significant and incredibly favourable when compared with international comparators. On loans, as he knows, we have increased the coronavirus business interruption loan scheme to allow up to £200 million to be made available, and we will continue to support businesses. He will also know that in certain cases we do have individual discussions going on with businesses.

[Edward Miliband]

I urge the right hon. Gentleman to get a move on when it comes to those sectors, because they really need the help. I want to ask him additionally about sectors such as hospitality, tourism and the creative industries, which have just been raised. They will take longer to reopen and recover because of public health measures, and I want to ask him about the impact on them of the one-size-fits-all winding down of the furlough. Can he explain to thousands of pubs across the country how they are supposed to find an employer contribution for furloughed employees from August when they are struggling even to survive? Is not the risk of that approach, and we have seen the jobless figures this morning, that hundreds of thousands more workers will lose their jobs, and all of us will end up paying the costs in higher benefit bills and a weaker economy? Would it not be better to have a different approach for those at-risk sectors?

[Alok Sharma]

We have taken a whole-economy approach, as he knows, and I have set out the measures that we have put in place. With regard to the retail and hospitality sectors, we have provided specific support for them in the one-year rates holiday, as well as the additional support that is available, but the key issue here is the safe reopening of the economy, and that is what we want to continue with over the coming weeks.

[Chris Loder (West Dorset) (Con)]

What steps he is taking to support the recovery of businesses in (a) rural areas and (b) market towns during the covid-19 outbreak.

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[Scott Mann (North Cornwall) (Con)]

What steps his Department is taking to support vaccine manufacturing and the UK life sciences sector.

[The Secretary of State for Business, Energy and Industrial Strategy (Alok Sharma)]

We have set up a vaccines taskforce to lead and co-ordinate all the Government’s activities to develop and manufacture a coronavirus vaccine. As part of that, we are investing £93 million in a vaccine manufacturing innovation centre, which will be completed 12 months ahead of schedule, by summer 2021. We are also funding a rapid deployment facility, which will be able to begin manufacturing vaccines at scale from August this year.

[Scott Mann]

Ultimately, throughout this process, we are in the hands of our brilliant scientists. I welcome the Secretary of State’s statement on what he is doing to accelerate opening the vaccine manufacturing innovation centre by next summer, but what more can be done to ensure that we get on top of this disease and address it as early as we possibly can?

[Alok Sharma]

Of course, my hon. Friend will know that we are providing direct support to the vaccines being developed at Oxford University and Imperial College London. He may also be aware that the Imperial vaccine is now set to enter clinical human trials. We are also leading international efforts to support vaccine discovery and deployment.

[Mr Speaker]

I call the Chair of the Business, Energy and Industrial Strategy Committee, Darren Jones.

[Darren Jones (Bristol North West) (Lab)]

UK-EU research collaboration contributes £2 billion to British research and development and accounts for at least 5,000 researchers in British universities, as well as its contributions to covid research and vaccination research. Will the Secretary of State make a commitment that, irrespective of the free trade agreement negotiations with the EU, the UK will seek third country full associate membership of Horizon Europe to keep that money coming into British R&D?

[Alok Sharma]

The hon. Gentleman will know that we are committed to being a science and R&D superpower, which is why we have committed to spending £22 billion a year by 2024-25 and to reaching 2.4% of GDP by 2027. The discussions with the EU are ongoing, and we will see what they lead to.

[Gill Furniss (Sheffield, Brightside and Hillsborough) (Lab)]

What recent discussions he has had with representatives from the hospitality sector on the effect of the covid-19 outbreak on that sector.

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[Alexander Stafford (Rother Valley) (Con)]

If he will make a statement on his departmental responsibilities.

[The Secretary of State for Business, Energy and Industrial Strategy (Alok Sharma)]

My Department, together with Her Majesty’s Treasury, is at the forefront of supporting businesses during these unprecedented times. More than £10.3 billion has been paid out to businesses to date by direct grant and an additional £38.2 billion through the major loan schemes. The Government have supported 9.1 million jobs through the coronavirus job retention scheme and 2.6 million claims have been made through the self-employed income support scheme.

In the past week, I have led five businesses taskforces to listen to and work with the business community and academic experts as we consider the measures needed to support our economy bouncing back. We want to create a cleaner, greener and more resilient economy and the output from those taskforces will feed directly into the Government’s work on the economic recovery.

[Alexander Stafford]

The Secretary of State will know that the UK has an opportunity to lead the world in hydrogen technology, which will create thousands of green jobs, cut emissions, unlock private investment and increase our energy security. Just as we lagged behind with battery technology, we risk missing the boat on hydrogen as other nations set multibillion-pound hydrogen strategies. The UK needs a hydrogen strategy. Will the Secretary of State meet me and other colleagues from across the House who share my belief in hydrogen to discuss how we can place hydrogen at the forefront of our green recovery?

[Alok Sharma]

As my hon. Friend will have heard in the earlier answer from the Energy Minister, we are committed to developing hydrogen as a strategic decarbonised energy carrier. We are investing in the value chain and both the Energy Minister and I will be happy to meet him.

[Andy McDonald (Middlesbrough) (Lab) [V]]

I associate myself with your remarks, Mr Speaker, and those of other Members, about our much-missed colleague, Jo Cox.

There is a clear racial and class dynamic in the covid-19 death rate, with those in working-class jobs, such as carers, taxi drivers, security guards and retail assistants, who are disproportionately black, Asian or minority ethnic, more likely to die from the virus. Throughout the pandemic, insecure employment practices have left millions without protections at work or the financial support they need to safeguard their income and allow them to self-isolate. Will the Secretary of State as a first step recognise that insecure employment practices are directly responsible for worsening inequalities, including structural racism and discrimination?

[Alok Sharma]

I add my deepest condolences to the families and loved ones of everyone who has lost their lives in this pandemic.

We are providing support across the piece for all individuals. The hon. Gentleman talks about people from ethnic minority backgrounds. He will know that we hold regular roundtables to ensure that we are addressing individuals in all sorts of groups that have protected characteristics.

[Mark Jenkinson (Workington) (Con)]

My constituency has nearly 30 miles of coastline from Workington to Bowness-on-Solway, with some of the highest tidal ranges in the UK. What assessment has my right hon. Friend made of the potential benefits of tidal range barrages along the Cumbrian coast—not only the benefits to energy production security but the wider socioeconomic benefits that integrated infra- structure might bring?

[Owen Thompson (Midlothian) (SNP)]

The coronavirus business interruption loan scheme—CBILS —was supposed to offer a lifeline of support to struggling businesses, but it is not reaching those who need it the most. Sky-high interest rates are now being offered by some lenders, and that is making it less of a lifeline and more like picking the bones off desperate smaller firms. Will the Secretary of State press the Chancellor to take action now to stop this unfair profiteering and ensure that businesses pay no more than 2.5% interest, in line with the bounce-back scheme?

[Alok Sharma]

As the hon. Member will know, the latest figures show that over 49,000 loans have been approved, to the value of more than £10 billion. There is a significant number of lenders attached to the CBIL scheme, but if he has specific cases, he should definitely come and talk to me.

[Ms Nusrat Ghani (Wealden) (Con)]

I would like to put on record my remembrance of my good friend, Jo Cox. In the Business, Energy and Industrial Strategy Committee, we are undertaking an inquiry into the impact of covid on our major industries. All of them rely on our maritime and ports sector to keep the supply chain going. Of the £22 billion—a vast sum of money—that is being put together for research and development, how much will be allocated to maritime innovation and tech?

[Alok Sharma]

I pay tribute to my hon. Friend for all the work that she did as shipping Minister. We have made the commitment to £22 billion a year by 2025. That is the biggest increase in public funding of R&D, and no doubt, as projects come forward from that sector, we will look at them.

[Stephen Kinnock (Aberavon) (Lab)]

I had the pleasure and privilege of sharing an office with Jo Cox for almost a year before she was so brutally taken from us, and our thoughts are with Brendan and the family today. On the issue of steel, the Secretary of State will be aware that the French and German steel industries received vital Government-backed loans within 10 days of their respective lockdowns starting. Here, months since the start of ours, the British steel industry has yet to receive a penny. Does the Secretary of State think that that is acceptable?

[Alok Sharma]

We are working with the steel sector, as the hon. Member will know, and we continue to work closely with it. Of course I absolutely remain committed to supporting a sustainable UK steel sector. We have increased the amount of borrowing that can take place under the larger CBIL scheme but, as I said to the right hon. Member for Doncaster North (Edward Miliband) in answer to an earlier question, when individual companies approach us, we will of course enter into direct discussions with them.

[Bob Blackman (Harrow East) (Con)]

It is good news that our shops are gradually reopening across England, but they are in a delicate economic position. The good old British compromise of our Sunday trading laws allows a balance between the larger stores, the smaller shops, the interests of consumers and the interests of staff working in those shops. Does my right hon. Friend agree that the very last thing we should be doing is disturbing that compromise and potentially placing at risk the jobs and economic capabilities of our small shopkeepers across England?

[Alok Sharma]

Of course we keep all these matters under review, and I know that there is a range of views on this matter. I would just point out that we did temporarily relax Sunday trading during the London Olympics. That was to support consumers and, of course, the economy as well.

[Vicky Foxcroft (Lewisham, Deptford) (Lab) [V]]

As businesses go back to work, what support are the Government giving to disabled people to ensure that they are able to return safely or to continue to work from home? Will the Secretary of State consider a tailored furlough scheme for disabled and shielded people who cannot return to their workplace?

[Alok Sharma]

The obligations on employers to take care of disabled employees have not changed. In the guidance that we have provided we make reference to the fact that employers need to take particular care of employees with particular protected characteristics.

[James Sunderland (Bracknell) (Con)]

  Yesterday morning, I had the pleasure of visiting the excellent Lexicon shopping centre in Bracknell, where I saw busy shops, happy shoppers and dedicated staff who had done everything possible to keep customers safe. Does the Minister agree that it is now time to revise social distancing measures to below 2 metres, not least to give our high streets a big boost?

[Alok Sharma]

I again thank my hon. Friend for all he is doing to support local businesses in Bracknell—more power to his elbow. I am sure all of us will do the same in our constituencies over the coming days and weeks. As I said in response to an earlier question, we are reviewing the social distancing rule.

[Mr Stephen Morgan (Portsmouth South) (Lab)]

One in four pubs do not have enough space to reopen and comply with the 2 metre rule and 82% of those that could reopen would have to operate at less than half capacity, putting pubs including many in Portsmouth at risk. With reopening fast looming, on what specific date will the Minister provide guidance to British pubs?

[Alok Sharma]

The hon. Gentleman will know that we have worked collaboratively with employers, employee representative organisations and trade unions in producing the guidance that we have put out so far. We continue to have a good dialogue with individual sectors, and once we have concluded that, we will of course make that guidance available.

[David Mundell (Dumfriesshire, Clydesdale and Tweeddale) (Con)]

May I begin by saying that my thoughts and prayers are with the hon. Member for East Dunbartonshire (Amy Callaghan) and her family at this time? Although a political opponent, she is, like Jo Cox was, a lovely person. Will the Minister, given the recent major policy change, ensure that contracts for difference—

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[Ruth Cadbury (Brentford and Isleworth) (Lab)]

I also concur with the remarks made about my friend and colleague Jo Cox. We remember her today and what she stood for. As a member of the Transport Committee, I stand by our description of British Airways as a “national disgrace” for the way it has effectively fired most of its staff and will rehire some of them on vastly cut pay and conditions. BA has done that under the cloak of the pandemic and gone way beyond any other major employer. The aviation sector will take longer to recover. When that does happen, I hope the Government will step in to support the sector. When they do so, will they ensure that employers cannot get away with the tactics of British Airways and also commit to delivering on climate change?

[Alok Sharma]

We appreciate that announcements about redundancies for British Airways staff have been incredibly distressing for the employees and their families. At the end of the day, the use of the Government’s job retention schemes is preferable to making redundancies. That is why we made them available. What I would say in this case is that it is a commercial decision. We expect British Airways and, indeed, all employers to treat employees fairly and in the spirit of partnership.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

I draw the House’s attention to my declaration in the Register of Members’ Financial Interests. It is right that the Government are requiring landlords to show forbearance to commercial tenants, but that is shifting some of the burden from the tenants to the landlords, many of whom are small and medium-sized enterprises, yet the banks are not providing a full payment holiday as they are for residential and buy-to-let. It is simply a capital repayment holiday, which is a small part of the payment. Will my right hon. Friend see what he can do about that?

[Alok Sharma]

My hon. Friend, as ever, raises an important issue. It is why both the CBILS and the bounce-back loans have a 12-month period during which interest is paid on behalf of the business. I would expect lenders to apply similar forbearance where needed in the case of existing commercial loans.

[Steve McCabe (Birmingham, Selly Oak) (Lab)]

My thoughts are also with Jo’s family. Let me acknowledge the basic decency of the furlough scheme. However, with vacancies plunging and the spectre of unemployment rising—youth unemployment in Birmingham is now at 18%—is it time for a jobs and training package, so that we avoid a return to 1980s unemployment levels for young people, when many from black and minority ethnic backgrounds simply felt written off?

[Alok Sharma]

The hon. Gentleman raises an important point. As we look to see how we can restart the economy and the whole process of recovery, we will, of course, look at skills as well.

[Lee Anderson (Ashfield) (Con)]

  Many constituents, from right across Ashfield, have been in touch with me as they are very concerned that they will be made redundant by Rolls-Royce. With Rolls-Royce announcing last week the locations of its first 3,000 redundancies in the UK, what more can my right hon. Friend say to reassure my constituents that the Government are doing everything they can to ensure that they are supporting the employees affected, as these are the people who have worked so hard to establish the company’s world-leading position? If any of these highly-skilled and professional workers are made redundant, what are the Government’s plans to ensure that their skills are repurposed to other projects?