UK Trade Performance

Debate between Lord Offord of Garvel and Earl of Effingham

Tuesday 7th May 2024 Lords Chamber

[Lord Offord of Garvel (Con)]

I thank the noble Lord for those comments. On the border target operating model and the new checks coming in, as part of Brexit, which the UK voted for, we need to protect our borders in all respects. As we have said before, we need border checks, especially when it comes to SPS. There will be costs to bear, but they will be outweighed by the benefits and the farming community has been very vocal in support of that measure. Let us remind ourselves of the costs if things go wrong: foot and mouth cost us £13 billion. So it is obvious that we need to do this and do it in a light-touch manner.

On stakeholder associations, I absolutely agree. I have regular dialogue with all the names given. We are in a bit of a transition with these organisations after having 50 years of being very focused on Europe. There is now a need for us to raise our sights, and there is a need for those organisations to go more global—no question about it. I am staggered as I go to our embassies and commissions around the world to find the strength in depth that we have in terms of trade teams in-country. We need to get them more joined up with stakeholder organisations. I will be happy to take that initiative forward in my portfolio.

[The Earl of Effingham (Con)]

My Lords, the Statement refers to our exporters “firing on all cylinders”, but according to the CBI and the British Exporters Association, less than 10% of UK businesses export. The Statement also refers to Unilever and Shell choosing London as their corporate headquarters, but Unilever is currently debating whether to list its ice cream business in London or Amsterdam, and Shell has made press comments about having a location that clearly seems to be undervalued, prompting concern that the company may move its listing to the US in future. My noble friend has already answered the question about how the Government will help more of our firms to export, but what will the Government do to assist and maintain UK stock market listings, not just in the FTSE 100 but, equally importantly, in the small cap index?

[Lord Offord of Garvel (Con)]

When it comes to stock market listings and the operation of stock markets, that is, by definition, capitalism in the private sector, and the Government should not get involved in that particular exchange. However, the previous lord mayor led a very interesting initiative which identified that our pension funds are not investing enough in UK equities, so there is now an interesting scheme going on whereby we can see whether we can get 5% of UK pension funds invested in UK equities, which I think is a very worthwhile initiative.

When it comes to headquarters, et cetera, a number of studies have been put out recently by PwC, EY and Boston Consulting Group which have done surveys with CEOs who indicate that they still believe that the UK is one of the best places to locate their head office in Europe. Therefore, we do not see any diminution in that. Foreign direct investment into the UK now is greater than into France, Germany and Italy combined. The market, the money, talks. The money is coming in—my noble friend Lord Johnson is doing a sterling job on that. We have a strong, good economy. Foreign investment is coming in. There is dislocation of stock markets, but initiatives are being taken to alleviate that concern.