UK-India: Comprehensive Economic and Trade Agreement

Debate between Lord Fox and Lord Stockwood

Wednesday 4th March 2026 Grand Committee

[The Minister of State, Department for Business and Trade and HM Treasury (Lord Stockwood) (Lab)]

My Lords, I am pleased to respond for the Government. I am grateful to my noble and learned friend Lord Goldsmith and the International Agreements Committee for securing the debate today. I am pleased to echo the comments made about my noble and learned friend’s exemplary work as chair of the IAC. I also acknowledge the important work that went into the considered, robust recommendations of this report and the many comments that have encouraged the quality of that work by the team here today.

I begin my remarks by advising noble Lords, having spoken with the officials who negotiated this agreement, that now that they are leading its entry into force the focus has decisively shifted from signing to delivery, and that work is progressing apace. With that in mind, I should like to talk about why the deal discussed today is so important, and, more broadly, why the UK-India economic and trade relationship is so valuable, as many noble Lords have mentioned.

The UK did £47.2 billion in trade with India in the past year. That was up 15%, year on year, and India is now our 11th-largest trading partner. However, as many noble Lords mentioned, it is India’s future potential as an economic partner that stands out. India has the highest growth rate in the G20. It is likely to become the third-largest economy in the world by 2029 and, by 2050, it will be home to more than a quarter of a billion high-income consumers.

Demand for imports is due to grow as well, reaching £2.8 trillion by 2050. Assuming global FDI into India continues on its recent trajectory, it could grow to be worth £1 trillion by 2033. Noble Lords will understand why this has a particular resonance for me as the Minister for Investment. I thank the noble Lord, Lord Kerr, for referencing investment, and express my delight that investment sentiment has already increased since the deal was signed. However, the opportunity runs far deeper than statistics.

The United Kingdom and India share a unique historic relationship that many noble Lords have referenced—one built not only on institutions and commerce but on people, ideas and innovation. The Indian diaspora, as my noble friend Lady Gill mentioned, is one of the UK’s greatest strengths. It is a true living bridge that shapes our economy, public services and universities, and the character of modern Britain. Despite the strength of that relationship India’s market, as my noble and learned friend Lord Goldsmith rightly noted in his opening remarks, is also behind some of the highest barriers to trade in the world. In 2024, India was ranked by the OECD as the eighth most restricted service market and it has some of the highest tariff rates in the G20. Gin and whisky tariffs are at 150%, cars 110%, cosmetics 22%, and soft drinks, lamb, fish, chocolate and biscuits are all at 33%. That sounds like a menu in the Stockwood household, but I wanted to quote some of those tariffs.

It is worth noting that India’s protectionism is not just a matter of policy; it runs deep in its national story. At independence, the burning of foreign cloth became a symbol of economic self-determination. So, when India agrees a deal of this depth, it is not just a small adjustment; it is a significant shift marking progress in the relationship between our two countries. It is in this context that the agreement secured by this Government should be viewed as a momentous achievement. Others had been trying to get a deal like this one for years and failed, but this Prime Minister, along with the then Business Secretary and Trade Minister, has literally brought home the goods.

The agreement goes well beyond India’s precedent, opening the door for UK businesses. The Commons Business and Trade Select Committee said in its report that this deal

“is the UK’s most economically significant bilateral free trade agreement since leaving the European Union”.

It will boost UK GDP by £4.8 billion—approximately 0.13%—and wages by £2.2 billion and is predicted to boost bilateral trade by £25.5 billion by 2040. For those who says that 0.13% sounds modest, I simply ask: what other single, practical step on the table today could bring the same level of economic development?

I ask noble Lords to bear with me for a second as I have lost my place; as a technology entrepreneur trying to use technology, the irony here is not lost on me.

India will drop tariffs on 90% of its lines, covering 92% of current UK exports, giving the UK tariff savings of £400 million per year immediately on entry into force. This will rise to £900 million per year 10 years from now, even if there is no increase in trade. India’s average tariff will fall from 15% to 3%. Further, I emphasise that every region and nation will benefit from this deal, including a £210 million boost for the north-west, driven by aerospace and automotive wins, a £190 million boost for Scotland, supported by cuts on whisky and satellite tariffs, as well as financial services access, a £190 million boost for the east of England, generated through tariff cuts and improved rules for medical devices and clean energy products and a £50 million boost for Northern Ireland, supported by a reduction in the tariffs on industrial products for aerospace, medical technologies and electronics.

Of course, the deal will deliver these benefits only if it is used by UK businesses. This point was made by many noble Lords. We know that it will not always be plain sailing, thanks to varying rules in different states and provinces. The staging of tariff liberalisation will need some explaining, and non-tariff barriers can be just as important. This was alluded to by my noble friend Lord Sikka. That is why we are matching the agreement with practical export support, including stepped-up advice in market and the full range of UK Export Finance backing, so that firms—especially SMEs, which were mentioned—can turn preferential access into signed contracts.

I saw this at first hand during the trade visit with the Prime Minister in October, when we took a number of businesses—120 CEOs—to India. Two deals that had not been made previously were struck in negotiations during that week. A noble Lord committed on the impact on climate. One of those deals was on accessing technologies in the UK that could accelerate the climate transition for India.

Our department is committed to ensuring that businesses have all the support they need, which is why we have protected the DBT team in India. It is also why we have already engaged with more than 5,000 UK businesses through guidance, events and roadshows on how to exploit the CETA. Once we get to entry into force, we will monitor the operation of the CETA’s provisions, including through the regular reviews and the Joint Economic and Trade Committee—the JETCO —that are built into the agreement.

We will also try to resolve other market access barriers that are not covered in this FTA—many of them have been mentioned today—including legal services, recognition of qualifications and specific state-level barriers. The UK is clearly open to continuing negotiations on a bilateral investment treaty, as long as it works for UK businesses. As many noble Lords have said, this is the floor, not the ceiling. We will keep improving how the agreement works based on real feedback from UK firms.

This negotiation has never been about just the economic uplift that it delivers, substantial and important though that is. At a time when our global norms are under pressure, the UK is choosing to lead and to stand for open, fair and rules-based international trade. Agreements such as this are how we build resilience and prosperity for not just ourselves but our partners. This is how we build trusted economic relationships in a world that is changing fast, as evidenced by the past week’s circumstances.

The world is not the same as it was a decade ago—in fact, it is not the same as it was last week. In this new global order, strong bilateral partnerships that are rooted in shared interests and delivered through serious, detailed agreements are how we secure our long-term position. This is a proper, thorough, detailed, old-fashioned treaty. It has hundreds of pages—as we saw on the desk of the noble Lord, Lord Hunt, earlier today—with commitments negotiated line by line. It is real, serious work that shows that the UK is a credible partner on the world stage. It reflects this Labour Government’s approach more broadly: being committed to the hard graft needed to get these deals done.

As previously mentioned, this deal is more about shaping the standards of the future, building trusted economic relationships and ensuring that countries that believe in openness and fair competition can work together. We have secured India’s first ever chapters on anti-corruption, consumer protections, labour rights, gender and development. The agreement also includes the strongest environmental commitments that India has ever made in an FTA. As the noble Baroness, Lady Bennett, referenced in her remarks, this is the start of a conversation, and we need to go further. I also take this opportunity to flag that the deal was negotiated by two formidable female chief negotiators, Kate Thornley and Nidhi Tripathi, showing both side’s commitment to putting women at the top table.

In response to my noble friend Lord Sikka’s points on corruption, the deal includes an anti-corruption chapter that has obligations to maintain measures on the criminalisation of bribery and prohibiting fraudulent book-keeping practices; the prohibition of facilitation payments; the criminalisation of embezzlement and money laundering; and whistleblowing protections—all things that we take incredibly seriously. In drawing attention to these crucial social chapters, I am keen to emphasise the importance of these agreements in strengthening real partnerships between nations and facilitating important, frank conversation in matters beyond the economic things set out in an agreement.

Turning to the European Union, we understand that it has now reached a political agreement on its own FTA with India, as many noble Lords have mentioned, where it seems that the UK deal was used as a baseline. We should in fact take this as a massive compliment, and we will be going through that agreement line by line to check the mark-ups later on.

Crucially, the UK retains a first-mover advantage. I am hopeful that the deal will enter into force before the end of spring so that UK businesses can start exploiting these reduced tariffs this year, while the EU will take some time to achieve ratification. Only the UK has secured access to India’s £38 billion federal procurement market, as the noble Lord, Lord Frost, rightly acknowledged. I repeat that for impact: we are the only country in the world to secure that access. This is undeniably significant and a huge opportunity to a market that is growing at the rate India is growing.

[Lord Fox (LD)]

I really welcome the fact that the noble Lord’s department is doing that analysis. Can he undertake to publish it so that we can see what the comparisons are?

[Lord Stockwood (Lab)]

I thank the noble Lord; I was going to come on to that, but we can agree to that.

My noble and learned friend Lord Goldsmith, my noble friend Lord Anderson and the noble Lords, Lord Hunt and Lord Frost, all made reference to the EU-India deal. As champions of free trade, we welcome this agreement. In answer to the contention of the noble Lord, Lord Frost, that the EU secured a better deal—as well as the interest of the noble Lord, Lord Fox, in that question, as he just noted—I will push back and note that we struck the deal that was designed to be in the best interests of the UK, built on UK business priorities. However, we will come back and comment on the comparison between the deals as well.

As well as its unique procurement process and access, the UK secured proportionally better access to the cars market as compared to production levels. We also kept CBAM out of the deal, while the EU made a £500 million commitment on climate financing over the next two years. Further, the deal also has a mechanism to help us keep pace if India gives more to other partners.

I hope that noble Lords will agree that the CETA is a good deal for the UK. I am grateful for the contributions made in today’s debate. Before closing, I shall take the opportunity to respond to the outstanding points and questions that I have not mentioned already. I will be pleased to follow up with noble Lords after the debate on the specific questions asked and any areas that I miss.

My noble and learned friend Lord Goldsmith, the noble Lords, Lord Hunt, Lord Hannay and Lord Howell, and my noble friends Lord Anderson and Lady Gill rightly noted that the deal is a long-term strategic investment—a start, not an end. The Government strongly agree with this view and the need to energetically pursue the opportunities the deal presents. As I mentioned, we have already engaged nearly 6,000 businesses on the deal and are putting out guidance to SMEs, and we are already preparing for our first Joint Economic and Trade Committee and the multiple technical working groups that sit underneath it.

On the points raised about services, modelling estimates that, in the long term, services exports should increase by over £1.6 billion every year because of this deal. The deal binds in access to over 43 sectors, and key UK services firms such as EY and PwC have come out in support of the FTA.

The noble Lord, Lord Ahmad, asked about professional qualifications. I can tell him that the regulators will be supported by a professional services working group that will support engagement between the UK and Indian bodies. That work is already under way.

On specific sectors, the noble Lords, Lord Howell and Lord Kerr, and my noble friend Lord Anderson noted the importance of legal services. As already mentioned, it is worth recognising that the UK treats the law as a noble profession, making access incredibly difficult. Through the negotiations, we have strengthened our ties with India’s legal system, and we will continue to support British lawyers and law firms seeking to operate in the Indian market. As the deal progresses, we hope to enter into further negotiations about access, particularly around legal services, but we recognise that this is the start of the deal rather than the conclusion.

My noble friend Lady Gill and the noble Lord, Lord Johnson, rightly mentioned the importance of using this deal as a platform for innovation. We have set up an innovation working group, which will bring together government, business, research institutions and academia to ensure that this framework of trade is fit for the future and supports the commercialisation of new technologies, which India excels at, as well as our own reputation globally. This will cover numerous sectors, including AI, quantum, advanced manufacturing and many others as we develop and progress. Indeed, on my trip in October, I found the energy and innovation sectors incredibly impressive. Where India is leading in many of these sectors, we need to be a partner.

The noble Baroness, Lady Prashar, the noble Earl, Lord Dundee, and my noble friend Lord Stevenson raised India’s non-tariff barriers. We have addressed non-tariff barriers in the agreements, from frameworks for mutual recognition of conformity assessments right down to the practical benefits, such as streamlined labelling requirements and the use of stickers—something that businesses regularly raised. Again, this will be a work in progress, and we recognise that there is some way to go.

As mentioned by my noble and learned friend Lord Goldsmith and the noble Lord, Lord Fox, India has recently rescinded on a large number of quality control orders in the industrial space. We are keen to build on the momentum and are actively encouraging India to review its trade-restrictive barriers on other products, both bilaterally and through work at the WTO. As the noble Lord, Lord Fox, suggested, we will continue to work to reduce these barriers, at both federal and state level, within and outwith the FTA.

Turning to goods, the noble Lord, Lord, Fox, raised dairy. All our current food standard protections remain in place. India does not have an approved veterinary residue plan for dairy, so any dairy products originating in India cannot be imported. I thank the noble Lord for his points on agriculture across the FTAs more widely. I commit to taking them to my colleagues in Defra and will write to him on some of the specifics that he raised.

On protecting the goods industry more generally, this deal includes a bilateral safeguard mechanism that allows us to temporarily suspend or increase tariff concessions if an industry is suffering or facing the threat of serious injury because of reduced duties in the CETA.

The noble Lords, Lord Ahmad and Lord Fox, asked whether we could have secured a quicker and more balanced trade liberalisation. As I noted earlier, the UK maintains a significant first-mover advantage, and we have secured a greater share of tariffs eliminated on day one of our agreement than the EU—64% compared with 49.6% of tariff lines, as we currently understand it. We expect the deal to increase UK exports to nearly 60%, with imports expected to increase by only 25%.

I will address the points made about human rights by the noble Earl, Lord Dundee. The UK is clearly a leading advocate for human rights around the world and, as I mentioned earlier, having secure and growing trading relationships benefits the UK’s ability to influence our partners and helps us to have open and frank conversations on a range of issues, including human rights. We are hopeful that the trade deal we have set out here allows us to encourage those conversations.

With reference to the DCC and the IAC’s request for an impact assessment, I again thank the noble Lord, Lord Johnson, for advance sight of this question. Foremost, the net impact on the Exchequer and the British economy of this agreement is significantly positive. The Office for Budget Responsibility will certify the impact of the CETA, including the DCC, in the usual way at the next fiscal event, once the deals have been finalised and ratified. We believe this is sufficient in reviewing the economic impacts of this convention.

The noble and learned Lord, Lord Goldsmith, asked about the impact on developing countries. I draw his attention to the trade and development co-operation chapter, which includes a commitment to monitoring the effects of trade agreements on developing countries, allowing risks to be identified and opportunities for development to be supported. Long-term analysis set out by the UK Department for Business and Trade’s Global Trade Outlook still shows that we expect growth in countries across south Asia and the region.

The noble Lord, Lord Howell, asked about climate and emissions. I answer by saying that UK businesses have a lot to offer through trade, innovation and procurement, and the access secured in the FTA, to assist in the transition to a greener economy. I saw this first-hand, as I mentioned, in a couple of innovative businesses that we took out to India, generating contracts that can significantly impact the transmission profile of India itself.

I come now to the parliamentary scrutiny process of FTAs, raised by the noble Lord, Lord Hannay, and others. I note that, alongside updates to the House after negotiating rounds, DBT regularly updated both committees privately to ensure that they were fully appraised of the sensitive negotiations. We take the feedback on the robustness of that process seriously and will debate some of the considerations further in the coming weeks. I note that the FTA and its impact assessment were published in full and laid in the House on the day of its signature in July last year. We also provided extensive evidence to the BTC and IAC to inform their committee reports and we published our Section 42 report in November.

Furthermore, we proactively sought a debate in both Houses on this deal to recognise the relevant committees’ respective inquiries and our commitment to transparency. As one of the Ministers accountable, I can firmly commit to taking the feedback and enhancing that process as we go further as well.

I want to respond on the geopolitical points raised by several noble Lords this afternoon, which are particularly salient considering the events of the last few days. We continue to see unprecedented turbulence and challenges to economic growth, alongside wider systemic issues, both domestically and internationally. We need to go back to growth and, to do so, businesses need certainty and stability. As part of this Government’s commitment to growth, we published our trade, industrial and small businesses strategies last year. We set out a broader vision and need to keep strengthening our trade partnerships and ensure the agreements that we have signed deliver clear economic benefits. That is one of the reasons I came into government: signing the India deal is only the start. We now need to make sure that it delivers.

In conclusion, this is a historic agreement that marks a major milestone in the UK-India relationship economically, strategically and geopolitically. It demonstrates that, when the UK engages with its partners, we engage seriously with credibility, detail and respect. It builds on the unique historic relationship between our two countries, showing how we can move forward together rapidly in an ever-changing world.

I am particularly grateful to the noble Lord, Lord Bates, for his contribution about the story of Dr Mahalanabis —my apologies if I got that name wrong. In closing, I make the point that I agree wholeheartedly that the dominant human trait that drives our species is indeed optimism. While there is much work to do in making this deal work for the UK, there is much reason to be optimistic about it in its current form. I look forward to continuing constructive engagement as we move forward towards entry in force, hopefully in the spring.

Digital Markets, Competition and Consumers Act 2024 (Alternative Dispute Resolution) (Conferral of Functions) Regulations 2026

Debate between Lord Fox and Lord Stockwood

Wednesday 25th February 2026 Grand Committee

[Lord Stockwood (Lab)]

I thank noble Lords for their contributions to the debate. As I stated in opening, the purpose of these instruments is to place the UK’s ADR framework on a stronger footing and to provide a more effective service for consumers and businesses alike. This feeds into the broader work of the DMCCA to bring greater fairness to digital markets and to bolster consumer protections.

I will try to respond to the questions raised by noble Lords today. The most important question, raised by the noble Lords, Lord Stevenson and Lord Sharpe, was about durable mediums. I am reliably informed that this includes digital. We do not have to go as far as stone tablets, as the noble Lord, Lord Fox, suggested. The digital medium is included in that, so that is the acceptable format.

The noble Lord, Lord Stevenson, raised an important question around extra burdens on consumers. Accredited ADR providers can charge a fee only if provisions for doing so are agreed by the CTSI and published. The purpose is to limit fees that consumers may be charged, thereby incentivising the use of ADR. At the same time, this is intended to discourage frivolous claims. Those fees should be up front and should be clear. There is a balance to be struck between ensuring that consumers have adequate access to ADR and that the core costs of the service are covered. We hope that this addresses that balance.

The noble Lord, Lord Stevenson, also mentioned reviewing the regulations. The Government have no specific plans to conduct a post-implementation review of this instrument or the reforms to which it relates, but we will continue to monitor and evaluate the operation of the system of ADR accreditation under the 2024 Act and the provision of the quality of ADR carried out in the UK through the quarterly and annual reports that this instrument requires the CTSI to provide.

The noble Lord, Lord Fox, asked about the capacity of the CTSI, the number of practitioners, how many will have to reregister, the processes and the costs. Those currently registered will go through a light-touch process to transfer their original registration across to the new system. We recognise that this transition period will place some burden on the ADR providers and aim to minimise this. The transition period will be in the region of six months, when ADR providers can continue to operate without the accreditation. In part, this will ensure that current providers and cases can continue without disruption. It will also give the CTSI time to manage the transition. We recognise that this will cause some extra elements of burden, but this seems like the lightest-touch way of transitioning to the improved system.

The noble Lord, Lord Fox, also asked about the CTSI register and about promoting the process. The CTSI currently hosts a list of accredited providers on its website. This will be maintained under the new regime so will remain in place. On the question about how the CTSI is monitored, it is required to provide reports to the DBT SoS on a quarterly and an annual basis. We hope that will be sufficient, but we will be happy to review that if it proves not to be an adequate way of keeping an eye on how things are going.

To conclude, I am grateful for the Committee’s support for this instrument. I beg to move.

[Lord Fox (LD)]

Before the Minister sits down, perhaps he could take this away: simply putting something up on the website—the “If we build it, they will come” approach—is probably not the best way for consumers to know that they have this service. You have to know it exists before you can find it. I suggest that the Minister takes away and discusses with the CTSI and others whether there is some sort of consumer marketing process that can follow once the capacity for ADR is there, so that people actually know it exists. I suspect that nobody knows the organisation exists—or very few people do—and certainly very few people know that ADR is a service on which they can call.

[Lord Stockwood (Lab)]

The noble Lord makes a really important point. Let me take that away and consult with the team and I will come back to him with a response on that.

US Tariffs

Debate between Lord Fox and Lord Stockwood

Monday 23rd February 2026 Lords Chamber

[Lord Stockwood (Lab)]

As a Minister only six months into the job, I have uncertainty in my own mind sometimes; I am certainly not going to comment on the US President. What I can say is that we remain the only country that has secured a 10% tariff on auto, securing hundreds of thousands of jobs; we are the only country in the world with a 0% tariff on pharmaceuticals; and we are the only country in the world to benefit from a 25% tariff on steel, aluminium and other derivatives. We believe that we will retain those competitive positions, but our position is to control the controllables that we have today and negotiate to retain those benefits for UK businesses.

[Lord Fox (LD)]

My Lords, I am sure that industry is grateful for the sympathy the Minister has expressed from the Dispatch Box, and we are all encouraged by the hopes that the Government have expressed. But we all know that the opinions of trade officials often differ from those of the President. The uncertainty that is now surrounding all of British manufacturing is huge. What advice are the Government now giving to manufacturing businesses? What conversations have been had with the manufacturers, and how should they behave in the light of this huge uncertainty?

[Lord Stockwood (Lab)]

The question of certainty, raised by the noble Lords, Lord Lamont and Lord Fox, is critical to business. We live in a world that is changing rapidly and evolving minute by minute—I just checked my BBC feed on my way into the Chamber this afternoon. What I can say is that this Government have a plan: for the first time since the 1960s, we have an industrial strategy that focuses on our competitive advantage in automotive, technology and pharmaceuticals. It remains important to have clarity on our comparative advantage, and we remain in negotiation with all those key sectors; indeed, the pharmaceutical sector has the most preferential deal globally. I was due to have a meeting at 3 pm today with the pharmaceutical sector, and this has overridden that. These are fast-moving events. We remain cool-headed, trying to negotiate on behalf of UK businesses, and we are confident that our preferential relationship with the US will bear dividends as things develop this week.

Land Covenants: Supermarket Chains

Debate between Lord Fox and Lord Stockwood

Wednesday 4th February 2026 Lords Chamber

[Lord Stockwood (Lab)]

I am assuming from the noble Lord’s question that he does not have Aldi and Lidl advantage cards as well. Just to acknowledge, the CMA is currently doing its work, including on a consultation to get feedback on how Aldi and Lidl should be treated. We acknowledge that the argument for exemption does distort the market, but the independence of the CMA must be respected. I share the noble Lord’s views that it seems right on face value that Aldi and Lidl should be brought into that same regime.

[Lord Fox (LD)]

My Lords, as well as the issue of Aldi and Lidl, there is also the issue of almost complete non-compliance with the 2010 order system. The CMA has identified multiple repeated breaches across all of the seven majors, as mentioned by the noble Lord. So, in addition to having this system, it is entirely unenforceable because the CMA has no legal powers to fine on this issue. The whole thing is being brought into disrepute by the absence of any real enforcement. Can the Minister confirm that the digital markets Act gives powers that could be taken by the CMA to fine on this issue, and will that be one of the issues that the CMA will be reviewing?

[Lord Stockwood (Lab)]

The CMA has a broad primary and competition regulatory framework. It is equipped with the powers to investigate and to act against anti-competitive conduct. On the specific question about the digital Bill, I will have to consult with colleagues and come back to the noble Lord; I am not familiar with it.

Hospitality Businesses

Debate between Lord Fox and Lord Stockwood

Tuesday 27th January 2026 Lords Chamber

[Lord Stockwood (Lab)]

Business rate reform has been on the agenda for the last number of Parliaments and this Government have taken it on. Since I came into government six months ago, I have been proud that our overall objectives have been about stability in our economy, bringing down inflation—it is on target for next year—and making sure that consumers have more money that they can spend in the hospitality industry. Alongside that, the review of overall business rates and the commitment of £4.3 billion mean that over a third of businesses will pay no business rates, over half of ratepayers will see no increases and 23% will see their bills going down. This is funded by targeting those with higher rateable values. Overall, while the main thing is bringing stability to the economy and bringing inflation down to make sure that consumers are spending, reform of revaluation is increasingly important as well.

[Lord Fox (LD)]

My Lords, while, of course, there is a need for holistic reform of business rates—the Liberal Democrats have long proposed a commercial land- owner levy—in the short term, just as the noble Lord, Lord Sharpe, suggested, reducing the retail, hospitality and leisure multiplier by 20p, as opposed to the Government’s 5p, would make a big difference. The whole retail and high street sector has been hit by this—not just pubs or hospitality—so does the Minister recognise that the current proposals, while welcome, are too small and narrow to help our high streets?

[Lord Stockwood (Lab)]

I clearly acknowledge that there are challenges in the economy that are not of the making of the last 18 months alone. Changing consumer behaviours post Covid are a challenge for our overall economy. However, to restate what I said before, we need to get the economy back on track overall and ensure that we have fiscal responsibility. This package alone will cost us £4.3 billion. The additional announcements today on pubs and live music venues take that even further. On average, that relief will be more than £1,600 per pub. We have to do all that while balancing the overall needs of the economy with fiscal responsibility, which the Government set out as major proposals.

Trade Act 2021 (Power to Implement International Trade Agreements) (Extension to Expiry) Regulations 2025

Debate between Lord Fox and Lord Stockwood

Monday 10th November 2025 Grand Committee

[Lord Stockwood (Lab)]

I am very grateful to noble Lords for their generous welcome and continued acknowledgement of my novice status in quite a technical debate, alongside the comments and questions they have put to the Government. To reiterate, these regulations are crucial to the Government’s trade agenda. We anticipate that we will be required to domestically implement deals currently under negotiation that will greatly benefit UK consumers and businesses.

I turn to answer the questions raised in the debate, starting with the noble Lord, Lord Lansley, who asked about the necessity of the Trade Act powers in today’s legislative context, with regard to live negotiations. The question was whether the powers in the Trade Act are still necessary. The answer is that negotiations with partner countries are ongoing, and I would not like to pre-empt any future talks that may take place. The powers in Section 2 have been used for statutory instruments relating to procurement, but also for free trade agreement implementation—for example, the mutual recognition agreements—as well as for the Trade (Mobile Roaming) Regulations and the Chemicals (Health and Safety) Trade and Miscellaneous Amendments Regulations. We therefore believe that the ongoing management of our trade agreements justifies extending the power.

I should have said upfront, by the way, that if I do not go into enough detail I am happy to write rather beyond the narrow range of this debate. I look forward to having broader conversations outside the Room as well.

The second question was from the noble Baroness, Lady Bennett, about protections for phytosanitary standards in future trade agreements. During the passage of the Trade Act, my party worked hard to ensure the inclusion of robust safeguards in Section 2. These guardrails require that any regulations made under Section 2 must uphold existing UK statutory protections in key areas, including environmental protection. A full list of these guardrails can be found in Section 2(5) and 2(7). Preserving our world-class standards is a priority and we will not compromise on any of them for our trade policy.

A number of noble Lords raised a secondary question about future plans for democratic scrutiny of trade deals. We believe that the current statutory and non-statutory commitments governing the scrutiny of free trade agreements are robust and fitting for a country with our constitutional make-up. Our scrutiny arrangements are similar to and, in some areas, better than other Westminster-style systems, such as Australia, New Zealand and Canada, but our non-statutory commitments include, for new FTA negotiations, that the Government will undertake a public consultation or a call for input. Should a relevant Select Committee publish a report on these objectives and, should it request one, we will facilitate a debate, subject to parliamentary time.

Furthermore, during negotiations, the Government will publish regular updates and provide regular open briefings for all MPs and Peers. Post signature, the Government will—

[Lord Fox (LD)]

I am sorry—I can at least intervene at this point. The point that the Minister has made on a couple of occasions is not exactly right. The report that the International Agreements Committee put forward says that the idea that the way in which our democratic process is organised somehow means that countries that are like ours are the same as us is fundamentally not true. The evidence is laid out in the report that I mentioned in my speech. I ask the Minister to go and read it, and perhaps discuss it with his department.

On the subject of parliamentary time, without getting into too much detail on CRaG, the only way in which a trade deal can be delayed is by the Commons having a parliamentary debate, and the only way in which the Commons can have a parliamentary debate is by the Government granting them one. The evidence suggests that that does not happen, so it is a deeply flawed relief valve in the system and something that would, again, merit reconsideration.

[Lord Stockwood (Lab)]

I thank the noble Lord for his follow-up question. This Government are trying to go beyond the statutory requirements.

The noble Lord, Lord Fox, asked this question earlier: is CRaG inadequate in the modern context? I will go away and read the report so that I have a further written answer for him, but I come back to the idea that CRaG provides an effective and robust framework for the scrutiny of treaties that require ratification, including free trade agreements. Although it was formally legislated for in 2010 under the previous Labour Government, its origins date back more than 100 years. Under CRaG, the Government must lay relevant treaties before Parliament for 21 sitting days before it can ratify them. Parliament has the power to prevent ratification; in the case of the House of Commons, it can do so indefinitely.

In line with the Government’s commitment to transparency, we have gone well beyond the statutory requirements for CRaG and provided comprehensive information to Parliament to support its scrutiny of our trade policy approach. In addition, no trade agreement can in itself alter our domestic legislation, and any changes to our UK legislation that are required for trade agreements will need to be scrutinised and passed by Parliament in the usual way. However, I take the noble Lord’s comments on board; we will come back with a fuller answer.

On the noble Lord’s other points, which were about protections in trade agreements for human rights, animal welfare and the NHS, as I have said, preserving our world-class standards is a priority. We will not compromise them in our trade policy. Regulations 2, 5 and 7 contain safeguards in the areas mentioned by the noble Lord, Lord Fox; we will ensure that they are upheld. None of our FTAs, which are not covered by this power, has undermined our NHS or domestic standards. Parliament has debated this matter at length in its debates on the Australian FTA, the New Zealand FTA and our ascension to the CPTPP. Both required primary legislation.

The noble Lord, Lord Hunt, asked a question about devolution. DBT Ministers wrote to their counterparts in the devolved Governments on 11 August 2025 to inform them of our intention to lay this SI before Parliament. In keeping with our commitment to transparency, we also shared a draft version of the SI for comment. In addition, we committed to maintaining the safeguards around the Section 21 power, as laid down in the Trade Act 2021.

On the question about the use of this SI’s power, before laying the SI, the Government reviewed whether the circumstances were such that the power in Section 2(1) ought to be extended; this provided an opportunity for the power in Section 2(1) to be reviewed. It was HMG’s conclusion that an extension to the power would be necessary. It is possible that the power in Section 2(1) may be relied on to enable the effective domestic implementation of major forthcoming trade agreements with key partners, such as Switzerland and Turkey, but also for the ongoing maintenance of existing agreements.

[Lord Lansley (Con)]

The Minister has again referenced Switzerland and Turkey. Let us leave Switzerland to one side because there is a pretty comprehensive continuity agreement between the European Union and Switzerland, which we have replicated.

Where Turkey is concerned, I want to stick with the question of mutual recognition agreement on conformity assessments. As I understand it, the European Union’s agreement with Turkey does not include a mutual recognition agreement on conformity assessment, although the negotiations between the United Kingdom and Turkey around an extension of a free trade agreement in future might include such a thing; we do not have to decide whether it would or would not. If such an agreement were entered into with Turkey, that would create an agreement with Turkey beyond the scope of the agreement that constituted the continuity agreement because it would include something that was not in the original continuity agreement with the European Union. My question is, therefore, very simple. The Minister does not have to answer it now; he can take it away and have a think about it. If we were to agree with Turkey something that was not in the European Union-Turkey agreement and, hence, not in the continuity agreement that we signed way back in 2021, could it be implemented under the Trade Act 2021 or would that require additional primary legislation?

[Lord Fox (LD)]

We could extend the same question to the situation with Korea, where my understanding is that the current continuity agreement is being rolled over again prior to the negotiation of a new deal. Were a new Korea deal to be negotiated, the question would be the same as the one put by the noble Lord, Lord Lansley.

[Lord Stockwood (Lab)]

I thank noble Lords for those follow-up questions. I am reliably informed that both of those negotiations are under way at the moment, so I will come back with a full answer in writing, if that is okay. I am grateful for the support across the Committee for these draft regulations.

Steel Industry (Special Measures) Act 2025

Debate between Lord Fox and Lord Stockwood

Thursday 23rd October 2025 Lords Chamber

[The Minister of State, Department for Business and Trade and HM Treasury (Lord Stockwood) (Lab) (Maiden Speech)]

My Lords, I am pleased to respond for the Government and I am grateful to my noble friend Lady Lloyd for initiating this debate. Based on the comments, it seems I am the only one who has not worked with her in a previous life, so I look forward to working alongside her in both the Department for Business and Trade and this House over the coming months.

I begin by thanking my noble friends Lord Glasman and Lord Kennedy for the generous introduction to the House and recognising the warmth and generosity of spirit with which my fellow Members and staff have welcomed me. It is the greatest honour of my life to take my seat among you. Honour is the right word because I know that, from where I come from, there are very few people who get to sit with noble Lords. As was mentioned, I grew up in Grimsby, after the Cod Wars of the 1970s. It was an industrial town like so many others and, as happened to so much in that generation, globalisation and international politics created unforeseen consequences for the town that I love.

My mum and my grandmother raised me and my three brothers alone. It is a strange synchronicity that she passed three years ago and it is her birthday today, which I only found out when my brother texted me this morning. Growing up, I never knew my dad. We grew up in a council house and, while we did not go hungry, there was a constant stream of red late-payment reminders coming through our letterbox. I remember often feeling cold and seeing frost on the inside of our windows in winter—in fact, I am still paranoid about the thermostat in my own home today, which drives my family mental.

Knowing what I know now, I realise these circumstances do not often lead to prosperity, yet here I am among noble Lords in the House of Lords. If noble Lords will indulge me briefly, I think it is important for me to pay tribute to the support that got me here today: my mother and grandmother, who in challenging circumstances always did their best for us; my three brothers, for keeping me grounded and connected to the town that I love; my wife and children for their love, laughter and security, which allowed me to go out in the world and be myself; importantly, the innumerable people who took a chance on me and backed me to succeed; and, finally, our welfare state, without which I would not be on this earth, let alone in this House.

It is because of those people and institutions—and, let us be honest, a little bit of luck as well—I was able to succeed in business, taking my life and career from the docks in Grimsby to call centres, eventually to the world of entrepreneurship, and even today I own a stake in my boyhood club, Grimsby Town FC. Incidentally, it gave me the previous greatest honour of my life when we beat Manchester United, which the noble Lord, Lord Rook, mentioned—I know the noble Lord, Lord Lamont, a fellow Grimsby Town fan, will appreciate that.

It is very fitting for me personally to be giving my maiden speech in a debate about steel. Just half an hour away from Grimsby lies Scunthorpe—our great football rivals, not least because of our similarities. We are both industrial towns but, while Grimsby’s economy struggled for decades to weather the shift in geopolitics and trade dynamics, Scunthorpe has a chance now to succeed, thanks to this Government’s intervention—not only Scunthorpe, but the region, which, thanks to the incredible work being done locally, is poised to capitalise on the opportunity of the clean-energy transition and the investment and good jobs that this transition will create. I understand our accomplishments are not a cure-all. There is still much work to do to ensure a bright future for our steel industry, but had we not undertaken those steps six months ago, the road ahead would look very different.

I had the privilege to be in the room in Scunthorpe with friends and the PM on the day the announcement was made, and the community was given a lifeline and a chance to begin their own renewal. If the people of those steel towns need hope for the future, they should look no further than Grimsby, which has begun its own renewal, at the centre of the nation’s offshore wind industry, which is bringing in good, well-paying jobs and raising living standards in the town. If there is one lesson from Grimsby’s renewal, it is this: progress is possible, but only when people come together, shoulder to shoulder, to play their part.

Before I come on to the comments about the steel industry in this debate, it would be remiss of me in my new role as Minister for Investment not to respond to the comments from the noble Lord, Lord Hunt, about disincentivising foreign direct investment. The recent evidence demonstrates that, even in the eight weeks I have been in the role, the UK investment environment is thriving. We are committed to a 10-year industrial strategy as a party. As an entrepreneur, I believe that we are in a situation for turnaround. We have a clear plan, we recognise the problem and now we need to execute. I am happy to have a follow-up conversation with the noble Lord on that matter, but it would be remiss of me not to mention that before I start.

I now turn to some specific points made in the debate. I want to start by recognising all the personal connections in the comments of those who spoke, particularly the noble Lords, Lord Mohammed and Lord Prior, and the noble Baroness, Lady Bloomfield, whose parents worked in the industry. As this is my first time addressing this House, I trust noble Lords will forgive me for oversights or questions unanswered. I appreciate the noble Lords, Lord Fox and Lord Sharpe, giving me the opportunity to reply to detailed questions in writing, which I will take them up on, so thank you for that.

As for when the steel strategy is coming, and the delay to the September steel council, raised by the noble Baronesses, Lady Hunter and Lady Smith, the noble Lords, Lord Hunt, Lord Mohammed, Lord Bilimoria, Lord Liddle and Lord Prior, and the noble Viscount, Lord Eccles, the Government are very clear that there is a future for steel-making in this country. That is why we intervened in April to keep Scunthorpe’s blast furnaces lit. The company is now hard at work to secure the future of British Steel.

This will not be without its challenges. Noble Lords will recall that Jingye acquired British Steel in 2010 at a time when the business was already in distress. Since then, it has faced persistent difficulty in market conditions, and regrettably, the company has not yet succeeded in returning the business to profitability. I support the comments recognising the incredible work of the management in this intervening and difficult period.

The support for British Steel has been mentioned. Although no long-term decisions have been made and taken in respect of the Scunthorpe site, I reassure the House that discussions with the owner are ongoing, and our policy and strategy work continues at pace to develop the optimal approach. This Government remain steadfast in their commitment to economic growth in north Lincolnshire.

For the avoidance of doubt, British Steel belongs to Jingye. The actions taken by His Majesty’s Government to date, including under those provisions of the special measures Act, do not constitute nationalisation. Rather, they represent a temporary, targeted intervention, designed to ensure the uninterrupted production of British steel.

That said, we have been very clear that securing the long-term future of steel-making in Scunthorpe will require significant investment. Such investment will support modernisation and decarbonisation, protect skilled jobs and safeguard the interests of the taxpayer.

On the question raised by the noble Lords, Lord Hunt and Lord Mohammed, on the sunset clause and the future of the special measures Act, noble Lords will recall that during the emergency debates on the special measures Bill, there were calls for a sunset clause in the proposed legislation to limit the duration of the Government’s powers to intervene in the steel industry. I recognise the ongoing desire for clarity regarding the future of the Steel Industry (Special Measures) Act.

As promised, the Government have been updating both Houses regularly on the powers in the Act and how they are being used. I further assure the House that once directions to British Steel are terminated, we will update Parliament on the repeal of the special measures Act.

On Tata Steel, raised by the noble Lords, Lord Hunt, Lord Bilimoria and Lord Murphy, and the noble Baronesses, Lady Bloomfield and Lady Smith, the decision to close the blast furnaces at Port Talbot was a commercial one, taken by Tata Steel in January 2024 under the previous Conservative Administration. By the time this Government took office, the process was already well advanced. Noble Lords will be aware that the first furnace ceased operations in June 2024 and the second followed in September.

However, we negotiated an improved deal with Tata after just 10 weeks in office, with better support and protections for workers, including the most generous voluntary redundancy package Tata has ever offered. We have since fully allocated the UK Government’s £80 million contribution to the Tata Steel/Port Talbot Transition Board to help people learn new skills, support the supply chain and protect people’s mental health. That this funding has been delivered in under a year is a testament to this Government’s commitment to the community impacted by Tata Steel’s UK transition to greener steel-making.

The electric arc furnace’s groundbreaking in July and the start of the work on the new pickle line in September are pivotal milestones demonstrating practical delivery of this complex project. These developments not only secure the future of steel production in Port Talbot but position the UK at the forefront of sustainable industrial transformation. At this point I would like to recognise the noble Baroness, Lady Smith, for her passion about her community and for her questions, which I deeply appreciate.

The topic of industrial energy prices came up often, raised by the noble Lords, Lord Hunt, Lord Mohammed, Lord Bilimoria, Lord Murphy and Lord Hannan. Since the 2010s, these prices have risen by more than 50% in the UK. Today, UK industrial energy costs are approximately 30% higher than those in Germany, 50% higher than those in France and more than four times those of the most competitive states in the United States.

Energy-intensive industries, including foundational sectors such as steel and metals production in Port Talbot and Scunthorpe, and vital industries such as glass, cement, steel and chemicals, are the backbone of our manufacturing economy. Due to their high-grade electricity usage, these sectors are particularly sensitive to increases in electricity prices. They employ around 400,000 workers and contributed £30 billion in gross added value in 2019, representing 1.5% of our national economy.

These businesses are indispensable to maintaining a resilient manufacturing base across the UK, which is why the Government provide relief to over 500 companies in these industries, supporting them with increasing industrial electricity prices due to the increased renewable policy costs. We do this through two key mechanisms: the British industry supercharger and the EII compensation scheme. These programmes ensure that our energy policy does not deter investment or production in the United Kingdom. They keep electricity prices competitive compared with international competitors and ensure that thousands of British jobs are safeguarded.

As part of our modern industrial strategy—

[Lord Fox (LD)]

My Lords—

[Lord Stockwood (Lab)]

I am aware that there are many questions; I guarantee that we will respond to them in full in writing.

As part of our modern industrial strategy, the Government have proposed deepening the support provided by our British industry supercharger by increasing the level of network charging compensation from 60% to 90% by 2026. We have consulted on this proposal and will respond in more detail in due course. This Government remain steadfast in their commitment to ensure that our energy-intensive industries are not disadvantaged by our transition to net zero. We will continue to support these sectors, which are vital not only to our economy but to our national resilience and prosperity.

I turn to the questions about global excess capacity and market-distorting practices by China, raised by the noble Lords, Lord Hunt, Lord Mohammed, Lord Bilimoria and Lord Liddle. As my noble friend Lady Lloyd of Effra set out in her remarks, we are calling out the practice of some countries that are choosing to flood the market with cheap steel in a bid to quash healthy competition. She joined Ministers from partner countries at the global forum on steel excess capacity in South Africa earlier this month, and the UK has lobbied hard to develop a comprehensive framework for joint action to redress global steel excess capacity by June of next year. The noble Lord, Lord Hunt, asked specifically about discussions with the WTO, and the UK regularly challenges China’s market-distorting practices during bilateral meetings, at the WTO’s subsidies committee and in other settings.

I turn to the topic of EU and US tariffs, raised by the noble Lords, Lord Bilimoria, Lord Murphy and Lord Liddle. The Government want to do everything they can to mitigate the impacts of tariffs raised by international partners. The UK will always defend its critical steel industry where required, and we will continue to explore stronger trade measures to protect UK steel producers from unfair behaviours.

On the recent announcement by the EU on proposed new steel trade measures on imports to replace the current steel safeguard, we are in close contact with the European Commission to understand the details of this proposal. This decision was not targeted to the UK but would be highly concerning for many steel producers and their workers, so we have been meeting with the steel industry to understand its impacts. As ever, this Government are committed to defending our critical steel industry.

Moreover, thanks to the strength of the UK-US partnership, the UK remains the only country to benefit from a preferential 25% tariff on steel and aluminium on all our exports to the US, avoiding the global tariff of 50%. That has reinforced the UK’s position as a trusted source of high-quality steel and aluminium. We have already committed up to £2.5 billion of investment, including through the National Wealth Fund, to rebuild the steel industry and continue to explore stronger trade measures to protect UK steel producers.

The UK has a robust trade defence system in place, including the UK’s existing steel safeguard measures. While the UK steel safeguard will expire in June 2026, in line with the WTO rules, we held a call for evidence from 26 June to 7 August to gather stakeholder views on the future policy options, and we are keeping all options under review to defend our critical industry. As set out in the trade strategy, the international trading landscape has rapidly changed, and we are sharpening our toolkit to respond to these increased threats.

To some of the points that the noble Lord, Lord Fox, made—I will have to write to him personally on many of them—I concur with his views on the fact that our families and communities should be at the heart of this debate. I remind the House that at present there are proposals and that we will not be drawn on the UK’s response to EU tariffs, but we will continue to take a cool-headed approach.

The UK Steel Council has met on three occasions, in January, April and July, and the next meeting is scheduled for 4 November.

On the question of our relationship with Jingye, the Government are engaged in a constructive dialogue with Jingye, in line with our commitment to a pragmatic commercial solution.

In closing, I just want to reiterate my thanks to all noble Lords who spoke in today’s debate. I want to convey my appreciation for their valuable contribution of insights and thank them for their generosity in allowing me to give written responses to many of the questions, particularly those asked at the end. I guarantee that we will provide written answers to anything I have missed.

My noble friend Lady Lloyd and I have set out the Government’s long-term vision for a strong, resilient, productive steel industry in this country that is primed for long-term success, driving growth in the communities that depend on our steel industry and help build it—the same communities that I spoke about in my opening remarks. The Government want them to feel and see the benefits of our plan for change and the decade of national renewal that we promised, and I look forward to working with noble Lords in that ambition.