(11 months ago)
Commons ChamberThe technology has moved on. Although 90% of everything that we need can be made from recycled steel, there is a gap, and Scunthorpe is obviously filling that gap at the moment.
My hon. Friend also made an important point about the Opposition, who are talking about potential job losses. In 1997, 70,000 people worked in the steel industry; by 2010, that number had fallen to 30,600—a fall of 40,000 jobs or 56%. The Labour leader between 2010 and 2015 did not mention the steel industry once in Parliament. Our investment at Port Talbot is the largest that has been made for a substantial period, and although the situation is challenging, without that support there was a massive risk that Tata would have left Port Talbot.
I just want to pin something down, because that was an important intervention. On 8 November the Minister said, in reply to a question from the hon. Member for Scunthorpe (Holly Mumby-Croft), that she thought it was vital to our economic security for these islands to retain their virgin steel-making capability. I put that position to the Secretary of State this morning, and she refused to confirm it. Will the Minister tell the House today whether it is her position that this country needs the capability to make virgin steel—yes or no?
I did follow the debate in the Select Committee, and I think the Secretary of State said that these decisions are commercial but that we will do everything that we can, and that our fundamental priority is to ensure that steelmaking continues in the UK.
Tata Steel’s decision has not been taken lightly. This consultation comes against the backdrop of a decade of losses, which were ignored by the Labour party when it was in power. Indeed, Tata’s managing director confirmed over the weekend that, as I mentioned earlier, the Port Talbot plant has been bleeding £1.5 million a day. Its decision also comes with a growing awareness that the UK steel industry has to modernise, because that is what customers want and the technology now exists. In those circumstances, businesses are compelled to make difficult decisions and tough changes. In fact, without the opportunity to install a modern electric arc furnace, the future of the plant would have been under serious threat.
I add my voice to the chorus asking the Minister to rethink the strategy and this deal comprehensively. At the heart of this debate is a simple truth: what the Government have offered us is a half-measure, and it is a half-measure that now threatens job security, economic security and climate security. Frankly, that is a price not worth paying.
The threat to job security has been well laid out by hon. Members this afternoon. It is not just 2,800 jobs at the steelworks itself; three times as many jobs will be lost because of the economic shock to the community. Here we have a situation where £500 million of taxpayers’ money is being forked out and up to 12,000 people are going to be thrown out of work.
The second point, which we must not let the Minister elude this afternoon, is that there has clearly been a change of Government policy on whether this country needs its own sovereign capability to make virgin steel. The hon. Member for Scunthorpe (Holly Mumby-Croft) spoke brilliantly and eloquently about precisely why we need to keep that capability in this country, and she was right to say that, in response to her urgent question in November last year, the Minister gave the House the very clear impression that she would defend a policy of His Majesty’s Government that we will retain sovereign capability for virgin steelmaking in this country.
However, when I asked the Secretary of State not once, but three times today whether it was the policy of His Majesty’s Government to keep that capability in this country, she declined to answer on all three occasions. She said that that was not a decision for Government to make, but a decision for industry—and, in her words, we might as well be trying to encourage people to keep typewriters. I do not think that is an appropriate response to a fundamental question of economic security.
The third point, of course, is on climate security, as my hon. Friend the Member for Aberavon (Stephen Kinnock) laid out very clearly. Tata has been very clear that it will honour its contract by importing steel from India. We know that that is 40% more carbon-intensive than steel made in this country and that other imports may now come in from China, where about 70% of the power is from dirty coal. That is bad for job security, it is bad for economic security and it is bad for climate security.
At the very least, we could have expected the Government to lay out a better plan that dealt with questions such as how we will guarantee the scrap supply, given that we now export 77% of our scrap and do not have a strategy to ensure that it is kept here in the event that the future is indeed in electric arc furnaces. We have not had a strategy on how to keep direct reduced iron technology here, and Tata is proposing to build that capability in Holland. So £500 million goes out the door, job security goes down, technology goes to Holland and dirty steel comes in. That is a bad deal and it needs rethinking.
(1 year, 1 month ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
I am grateful to the hon. Member for Scunthorpe (Holly Mumby-Croft) for securing this urgent question. The Minister is in peril of presiding over the end of primary steelmaking in this country and the curtain falling on 300 years of Britain’s industrial history. The announcement comes at a time when an analysis shows that the Department’s budget is set for a 16% real-terms cut in the years ahead. Is it the policy of His Majesty’s Government that blast furnaces will stay in operation in our country and that we will not be dependent on imports of primary steel? When can we expect a conclusion to the negotiations and some safeguarding of the vital industry either at Tata or at British Steel?
I congratulate the new Chair of the Business and Trade Committee, of which I was previously a member. As I have made clear, these are commercial negotiations and they are ongoing. When the decision was taken on Port Talbot, discussions had taken place for several years—even decades. This will not take that long, but my point is that many Ministers have stood at the Dispatch Box talking about steel and doing what can be done to protect and promote the steel sector in the UK. The negotiations are ongoing.
British Steel’s statement on Monday contained proposals and a plan—nothing is concluded yet. My focus, as our focus has always been, is on protecting the steel sector in the UK, protecting steel jobs in the UK and doing everything we can to procure more British steel in UK manufacturing. Of course, that continues. These are commercial decisions about how companies wish to continue their business going forward. I have made it clear that fundamentally there needs to be a mix of steel produced in the UK in the steel market, but the reality is this. First, steel produced in electric arc furnaces is far more nimble because of the technology, and it can be used for many more materials in advanced manufacturing than previously—that is a fact. Secondly, manufacturers, customers and consumers fundamentally want a cleaner, greener steel package. It is not just me saying that at the Dispatch Box; it is also the UK steel industry representatives who have put together a net zero strategy and are talking about having cleaner, greener steel going forward. We have a lot of scrap steel in the UK that can be recycled, and we have far more capacity to recycle that than we have for that steel to be used in UK manufacturing, but, fundamentally, we need to have a mix. I believe that that mix will continue as long as it can and should, but these are commercial decisions. We continue to negotiate with British Steel.
(1 year, 2 months ago)
Commons ChamberI thank my hon. Friend for all that she does to champion the Jewish community. I met most recently with Ministers, police chiefs and the Community Security Trust in Downing Street to discuss how we can better protect the British Jewish community at this difficult time, as well as additional funding. I have been clear that there is zero tolerance in our country for antisemitism. What we have seen recently is unacceptable and it should be met with the full force of the law.
Hamas’s crime was not just what was once called “the banality of evil”; it was the calculation of evil, which is why Hamas must be defeated. The Prime Minister is right that a humanitarian disaster is unfolding in Gaza. That is why he is right to say that we need a constant stream of aid pouring in. The UN Secretary-General is very clear that only a binding-on-all-sides negotiated cessation of hostilities will allow that aid to pour in as the Prime Minister said. Is the UN Secretary-General wrong, and if he is not what will the Prime Minister do at the United Nations to bring about that binding-on-all-sides negotiated ceasefire so that aid can flow and lives can be saved?
Aid is already flowing into Gaza as a result of the diplomatic efforts of many, including the UK, and now we are providing further not just financial but logistical support to increase the supply of that aid. We will continue to do so. It is vital that we get it in, and we are working very closely, as I said, with the head of the UN’s humanitarian agency, who is in constant contact with the Development Minister.
(1 year, 3 months ago)
Commons ChamberThe hon. Lady started off appropriately by talking about how we work collectively on this issue. The rules of origin and tariffs were not just negotiated by us—there was another party at the table. The tariffs, if they are implemented, will impact not only on the UK car manufacturing sector but on manufacturers in Europe. As there are more cars imported from Europe into the UK, the burden will be far greater on those countries. The negotiation took place pre-covid and before Russia’s invasion of Ukraine. Of course, there is now a tight deadline, but negotiations with Brussels always go to the wire.
The important thing is this: we are negotiating hard for the UK automotive sector. Those manufacturers in Europe were also desperately trying to negotiate hard, because this impacts them just as much. Just as we have the Society of Motor Manufacturers and Traders—the automotive sector’s umbrella group—campaigning, they have groups campaigning in Europe. Just last week, there was a huge amount of news coverage about how Europe is now incredibly concerned about the flood of cheaper electric vehicles into its market. The argument we are making should definitely be taken to the EU, because the tariffs would impact car manufacturing in mainland Europe, too.
The truth is that while gigafactories are now being built right the way across Europe, we need at least eight gigafactories with about 15 GW of capacity in the UK—including, I might say, one in the heart of the west midlands, which is home to about a third of UK automotive production. In the last Metro Mayor election, both the Conservative Mayor, Andy Street, and I promised that we would get that gigafactory built; it is still a large open space. When does the Minister anticipate those eight gigafactories being built in the UK? When does she anticipate a gigafactory coming to the Coventry airport site? If we fail, our automotive industry will be hit with tariffs soon and we will put 114,000 jobs in jeopardy.
The Tata gigafactory announcement ensures that we are front-footed when it comes to gigafactories—it will be one of the largest factories in Europe. The right hon. Member and the Labour party are obsessed with us needing five or eight gigafactories, but it is about capacity. It has been noted that we need, I believe, 89 GW by 2030, and with both Tata and Envision we are two thirds of the way there. That is how we need to compare with the rest of Europe: it is not about the number of factories; it is about the level of capacity that they provide. Even though we have those two in place, we are not complacent and will continue to do everything we can to secure further investment.
The right hon. Member talked about a particular site. Obviously, that will have to go through two funds within my Department, but we will always look at solid investment for even more gigafactory capacity in the UK.
I am grateful for that reassurance, because this is one question on which both the Conservative Mayor and I would be happy to come and lobby on behalf of the west midlands. The point is that we are told that we need 130 GW of capacity in the UK by 2040. Now, that may be eight sites or it may be more or fewer, but the key thing is that we cannot see a plan for the UK getting that capacity in place, unless the Minister gets up and tell us that there is a plan that she is about to reveal.
The right hon. Member and, of course, the Mayor for the West Midlands lobby incredibly hard—as they should, because they have fantastic sites for potential gigafactories—and those negotiations will continue. I always used to say at the Dispatch Box that we needed 100 GW of capacity, but the figure is now 89 GW. Envision and Tata provide us with a solid footing to get up to the capacity that we need, but we will not be complacent; we will continue our work.
As hon. Members will hear throughout my speech, over the summer we put in place a consultation on a battery strategy. I believe that, outside Norway, no other European country has such a strategy. We are working to produce a strategy to ensure that we have substantial capacity in the UK. The Tata commitment is huge, and I will allude to that as well. I mentioned Stellantis, which has started electric van production in its Vauxhall plant in Ellesmere Port. That transformation is also historic, as it makes the plant the first all-EV facility in the UK and one of the first in Europe.
I turn to gigafactories, the favourite topic of the right hon. Member for Birmingham, Hodge Hill (Liam Byrne). In the summer, we also helped to secure more than £4 billion of investment from Tata for a new gigafactory. At 40 GW, it will be one of the largest battery plants in Europe, equivalent to the size of almost 65 football pitches. It will create up to 4,000 highly skilled jobs as well as thousands of further jobs in the wider supply chain for battery materials and critical raw minerals. Most importantly, the investment helps to turbocharge our switch to zero-emission vehicles by providing almost half the battery production needed by 2030. It is not that we need 12, 15 or five; it is about the capacity we need. Tata takes us two thirds of the way there and Envision is on top of that.
The announcements are the most recent in a line of investment decisions over the last couple of years. In 2021, Nissan and Envision announced a £1 billion investment to create an EV manufacturing hub in Sunderland. Ford joined the line-up in 2021 with a £227 million investment in Halewood to make the company’s first EV components site in Europe, and increased its investment in the plant to £380 million in 2022. Last year, we saw Bentley commit more than £2.5 billion to transition its Crewe plant to zero emission vehicles, with the first EV model to roll off the production lines around 2025.
Jaguar Land Rover has also announced that it will invest £15 billion over five years into its industrial footprint as part of its move towards electrification. That is great news for the west midlands and Halewood, where Jaguar Land Rover has production sites, research and development facilities and its headquarters. These investment decisions are votes of confidence from a highly productive and innovative sector, showcasing that the UK has the best to offer when it comes to green manufacturing and new and future technologies.
I hear my hon. Friend. With up-to-date policymaking, we ensure that consumers and taxpayers get the best possible option of modern auto transportation.
As recent investment decisions suggest, our message—I keep reiterating it as co-chair of our industry-Government forum, the Automotive Council—that the Government have the automotive sector’s back, was heard loud and clear. In that regard, we do not shy away from the challenges the industry has been facing: rising costs because of Putin’s horrific war in Ukraine; supply chains disrupted by covid aftershocks; and a fierce international competition for green manufacturing investment, rooted in an economic security concern, leading to countries choosing protectionist tools and consequently threatening the hugely important global supply chains that rely on cross-border collaboration. Those are all serious challenges for the UK automotive sector.
Those issues, however, are not unique to us. Countries across the globe face similar challenges and provide different responses. Some feel that the best way to reach pole position in the race to secure green manufacturing is to spend incredible, eye-watering amounts of their taxpayers’ money. We have taken a different approach and concentrate on the best way to encourage investment with targeted support. We have more than a chequebook to attract companies to these shores. Our highly productive and skilled workforce, focus on innovation and ease of doing business are key factors in a company’s decision to base itself in the UK. We do not need more evidence of that than the three recent announcements I mentioned earlier.
As co-chair of the Automotive Council, I consult regularly with representatives of auto companies and listen to their views on how the UK can raise its international competitiveness. Our competitive business environment and regulatory system evidently continues to stimulate investment in the UK, but that can only come from a fruitful exchange with industry and by addressing concerns raised. For example, in February, we announced the British Industry Supercharger, a range of targeted measures to ensure electricity prices for key energy-intensive industries, including battery manufacturing, are in line with major economies around the world. An issue raised by many colleagues on both sides of the House is skills. We understand automotive companies need highly skilled individuals across the entirety of their business. One reason the UK is attractive is our world-leading universities, with four UK institutions in the global top 10, according to the QS world university rankings. But that is not all. We support the auto sector through the apprenticeships levy, with £2.7 billion in funding by the 2024-25 financial year. That will support apprenticeships in non-levy employers, often small and medium-sized enterprises, where the Government will continue to pay 95% of apprentice training costs.
We also recognise the importance of a level playing field. That is why, at spring Budget, the Chancellor launched a new capital allowances offer. Businesses will now benefit from full expensing, which offers 100% first-year relief to companies on qualifying new main rate plant and machinery investments from April 2023 until March 2026; the 50% first-year allowance for expenditure by companies on new special rate, including long life assets until 31 March 2026; and the annual investment allowance, providing 100% first-year relief for plant and machinery investments up to £1 million.
One issue that has already been touched on is our relationship and tariffs with Europe. To support our industry through the transition, we must also address any and all barriers to trade with partners and markets all over the world. Our closest trading partner is the EU, with whom we share not only climate goals and a trajectory towards electrification, but deeply integrated supply chains. Over 50% of cars manufactured in the UK and exported are destined for EU consumers.
For those reasons, we are working closely with industry to address its concerns about planned changes to the rules of origin for electric vehicles in the trade and co-operation agreement between the UK and the EU. Since signing a deal, unforeseen and shared supply chain shocks have hit the auto industry hard. That has driven up the cost of raw materials and battery components, making it harder to meet the changing rules. That risks industry in the UK and the EU facing tariffs on electric vehicles at a crucial time in the transition to electrification. I and the Government are determined to seek a solution to that shared problem and to work with the EU to fix it for 2024.
There are, of course, proposals by Chinese battery makers to consider investing in the UK. Can the Minister tell the House whether, if investments are made by those Chinese firms, the cars we make with those products will still be allowed to be exported tariff-free and will not get caught by new tariffs because of the amount of foreign content they might contain?
The right hon. Gentleman raises a valuable point. We need to ensure not only that we support UK manufacturers, but that new investors and entrants into the market are treated equitably. We know that, because of the negotiations taking place on rules of origin, there has been a consultation taking place in Europe on its anxiety about the market being flooded by cheaper EVs. Obviously, we need to allow customers to make a choice, but we have to ensure that UK manufacturers are not dealt a blow by any new Chinese entrants into the market. He knows my history when it comes to dealing with China and sanctioning. That is why I have been doing so much work not only to support our UK manufacturers, but to ensure our supply chain is resilient. I hope that will give him some confidence on this issue.
As I mentioned to the hon. Member for Luton South (Rachel Hopkins), this will impact EU manufacturers just as much as it impacts UK manufacturers; because they import more into our economy, it will be a heavier burden for them.
(1 year, 3 months ago)
Commons ChamberMy right hon. Friend has focused on the issue of maritime security in the Black sea for some time, and he has been correct to do so. We are talking and working with partners, allies and, indeed, Ukraine in considering all the different ways in which we could ensure the safe exit of and access to grain from Ukraine, and will continue to do so.
As for the global food summit that we will host in London, it will focus on four themes: creating new approaches to ending the preventable deaths of children, building a climate-resilient food system, anticipating and preventing famine and food security crises, and using science and technology to boost food security and nutrition. We are also working to deliver the food summit in combination with partners including the United States and Somalia.
May I first associate myself with the sympathies extended to the people of Morocco?
I welcome the language in paragraph 50 of the G20 communiqué about building a bigger World Bank. The truth is that we need to triple the lending of multilateral development banks if we are to mobilise the climate finance that the world now needs, and we cannot do that simply by building a better World Bank; we need to build a bigger World Bank. In the United States, President Biden is asking Congress to support a capital call and boost the balance sheet of the World Bank. Why is the UK, one of the founders of the World Bank, not leading the same argument? We could even use the money we are getting back from the European Investment Bank, and the Prime Minister, if he so chose, could call it a Brexit dividend. The world leads a bigger World Bank now, and the UK should be leading the case.
(1 year, 5 months ago)
Commons ChamberI thank my hon. Friend for his question. In the interests of time, I might point him in the direction of the Secretary-General’s press conference from the day before yesterday, which explained—in more detail than I have time for now—the process and how this has been done previously. As he pointed out, accession to NATO has never been a question of timing; it has always been a question of conditions and circumstances. My hon. Friend will be familiar with the fact that there is an ongoing conflict. There are also requirements on all NATO members when it comes to areas such as modernisation, governance and interoperability, which Ukraine is now firmly on the path towards fulfilling, not least because of the help and support that we have provided over the past year.
I agree with my hon. Friend that history will judge this to be one of the most significant NATO summits. There was the significant change in the defence investment pledge, so 2% is now firmly established as a floor, not a ceiling. There was the most comprehensive update to NATO’s war fighting plans in decades, if not since the end of the cold war, and they are remarkable in their breadth and significance. There was the accession of new members—Finland, and Sweden to follow. Lastly, there was the move on membership for Ukraine. Taken together, that represents a significant set of NATO achievements, sitting alongside the multilateral security guarantees. As my hon. Friend says, it has been an historic and very important couple of days.
I hope that in his reply the Prime Minister will help clarify that it is we who owe gratitude to Ukraine, not the other way round. Will he update the House on plans not simply to help Ukraine win the war, but to win the peace? The reconstruction of Ukraine will cost at least $400 billion, and Russia should be helping to foot the bill. That means we need new laws to seize, not simply freeze, assets. It means we need action at the United Nations to change the norms around immunity of central banks. Crucially, it means we need to start prosecuting Russia for the crime of aggression. That will require us to mobilise not simply a military NATO, but an economic NATO. Will the Prime Minister update us on the conversations that he has had to make that a reality?
As the right hon. Gentleman knows, we have recently hosted the Ukraine recovery conference, for which the Ukrainian Government and people are extremely grateful. It was the most successful conference of its ilk that has happened, raising more than $60 billion for Ukraine’s reconstruction and mobilising private sector capital, as is necessary. It was seen as a significant achievement and the UK leading from the front. With regard to assets, I point him to a good couple of paragraphs in the NATO communiqué. All allies are taking steps, as are we, to legally freeze assets until suitable reparations from Russia have been put in place for reconstruction. He will understand that the international framework for doing so is untested and novel. It requires co-operation among allies, and that co-operation and work is happening.
(1 year, 7 months ago)
Commons ChamberI thank my hon. Friend for all her work in this area previously. She will be proud, as I am, that the Foreign Secretary launched the women and girls strategy in March, and one particular thing in that was to continue putting women and girls at the heart of everything to do with education. UK aid has supported 8 million girls to gain a decent education, which is part of our pledge to enable all girls to have access to 12 years of high quality education. That is something we will continue to champion in all international fora.
I declare an interest as chair of the international Parliamentary Network on the World Bank & International Monetary Fund. I also welcome the commitment in paragraph 10 of the G7 communiqué to enhance development finance, tackle the imminent debt crisis, tackle climate change, and advance progress towards the sustainable development goals. Would that be an awful lot easier if the UK stepped up and met the African Development Bank’s calls for hybrid capital, matched Japan’s commitment to share 40% of the new special drawing rights, and used the €3.5 billion that we get back from the European Investment Bank to help build a bigger World Bank? At a stroke, that would help to restore the global leadership and development that we have so needlessly and dangerously squandered.
(2 years, 1 month ago)
Commons ChamberMy hon. Friend puts it very well. He is right about the importance of CPTPP, not only for its very significant economic benefits but for the strategic benefits to the United Kingdom of being an engaged member of the Indo-Pacific community. I discussed this with the Prime Ministers of Australia, Japan and Canada, and there is incredible excitement about our joining. We will continue to conclude those negotiations as quickly as possible.
The Prime Minister will know that the last G20 summit agreed to on-lend $100 billion of IMF special drawing rights to help tackle the crisis of food fragility and climate finance in the global south. To date, we have agreed to share much less of our entitlement than both France and China. The crisis is now. Will the Prime Minister look again at how we can increase our on-lending to this multilateral effort, not least to make good the appalling decision to slash our aid budget?
As Chancellor, I was pleased to usher through the special drawing rights allocation at the IMF, which is providing enormous relief to countries around the world. I met the IMF’s managing director to discuss how we can do more, but remember that the SDR allocation is just one part of our effort to support people around the world. I was recently pleased to announce our £1 billion commitment to the Global Fund, which was warmly welcomed, especially by countries in Africa.
(2 years, 5 months ago)
Commons ChamberI really do not have time.
It was the Prime Minister’s personal intervention—he sent back early drafts of the roll-out strategy—that brought together the NHS, the armed forces and the private sector to get vaccines out quicker than other large countries did.
We can be proud that when Russian troops invaded one of our European partners, our Prime Minister did so much to lead international support for Ukraine. It is simply not credible to imagine that Britain would have stood as firmly against Russian aggression if it had been led by a man whose response to an assassination attempt on the streets of Salisbury was to demand that evidence be sent to Moscow.
Was it the right response to that poisoning to fix a meeting with a former intelligence agent of the KGB—a meeting without officials, minutes, or any report to this House of what the hell happened?
I will tell the right hon. Gentleman what the right response was: it was to co-ordinate the biggest diplomatic response since the end of the cold war. The Prime Minister, then Foreign Secretary, got more diplomatic responses than have been seen in decades. The Prime Minister has many achievements of which he should be proud. His successor will have a strong foundation to build on, thanks to the decisions that he has taken over the past three years.
(2 years, 5 months ago)
Commons ChamberMy hon. Friend speaks wisely on this matter, which he knows very well. We keep the actual numbers under constant review. The most important thing is that our troops are the best in the world but they also have to have the best equipment in the world, and that is what we are paying for.
I was relieved to see the G7 recognise that 200 million people now face starvation around the world, along with the pledge to mobilise £100 billion in IMF special drawing rights to help to alleviate the crisis. Last week, however, the Foreign Secretary could not tell us how much the UK has been given in special drawing rights nor what her target was for sharing them back—presumably because it was not on Instagram—so can the Prime Minister help us? Can he reassure us that all £19 billion of the UK’s new special drawing rights will be shared to help with this crisis in order to set a good example to the rest of the world?
The right hon. Gentleman is absolutely right to draw attention to the use of special drawing rights. We are supportive of using those for the benefit of people around the world who are currently finding things very tough.