Lord Taylor of Warwick

My Rt Hon Friends the Chancellor of the Exchequer and the Secretary of State for Business and Trade are responsible for this Government’s priority of growth and advancing opportunities for investment across the country.

The Prime Minister has been clear that the UK’s economic regulators, including the Competition and Markets Authority, “the CMA”, have a vital role to play in delivering the Government’s growth mission. The Government will soon publish a new growth focused Strategic Steer to the CMA.

Over the last 20 years the UK (£720 billion) has attracted more Greenfield FDI than Germany (£305 billion) and France (£205 billion) combined. My department will continue to work with the Department for Science, Innovation and Technology and the Office for Investment to support significant overseas companies to invest and expand their footprint in the UK, and ensure that local communities benefit from the digital industrial revolution.

As set out in the AI Opportunities Action Plan presented earlier this month, AI Growth Zones will be established across the UK. Government will support these dedicated hotbeds of development to build the infrastructure needed to power and train cutting-edge AI. By partnering with the private sector, we will create vibrant hubs that attract investment, support new jobs, and rejuvenate communities.

The UK-US partnership is a cornerstone of the transatlantic alliance and we look forward to working with President Trump in the coming years. Our trading relationship with the US is worth around £300 billion and we have over £1.2 trillion invested in each other’s economies. We will explore various avenues to strengthen UK-US trade and support economic growth, alongside the development of our Industrial and Trade Strategies.

The Government views effective competition regulation as a key driver for growth of UK businesses. As outlined in the Industrial Strategy Green Paper, effective competition drives innovation and boosts productivity, enabling businesses to thrive. The Competition and Markets Authority (CMA) is the UK’s primary consumer and competition authority. The CMA has returned over £23 in savings to consumers for every £1 spent by UK taxpayers over the last 3 years.

A secure supply of critical minerals is vital for the UK's economic growth and security, industrial strategy, and clean energy transition. The government is developing a new Critical Minerals Strategy which will be more targeted towards the delivery of our industrial strategy and its eight core growth sectors. This new Critical Minerals Strategy will help secure our supply chains for the long term and drive forward the green industries of the future.

Economic growth is the number one mission of this Government. In November we published our Industrial Strategy Green Paper, which set out that Sector Plans will be designed in partnership with business, devolved governments, regions and other stakeholders. Sector Plans will identify key barriers to growth and describe how Government and industry intend to achieve long-term growth and create more good jobs in every part of the country.

In addition, the Government will continue to monitor carefully the impacts of the National Minimum Wage and National Living Wage on the economy. The Government's remit to the Low Pay Commission's (LPC) asked the LPC to take into account the impact on business, competitiveness, the labour market, and the wider economy when recommending rates.

The Department for Business and Trade sponsors two voluntary and business-led initiatives: the FTSE Women Leaders Review and the Parker Review on ethnic minority leadership. Both reviews encourage companies to achieve voluntary targets - 40% representation of women on boards and in senior management, and at least one ethnic minority director on company boards.

The 2024 report showed that 42.1% of the FTSE 350 board members were women behind only France who has adopted a quota approach to diversity and ahead of other countries with quotas. The 2024 Parker review reported that 77% of boards FTSE 350 boards had met their target.

Growth is the number one mission of the government. To encourage expansions, investment and recruitment, we are beginning to tackle barriers to investment, like skills, international talent, data, R&D, technology adoption, access to finance, competition, regulation, energy prices, grid connections, infrastructure, and planning – through a new Industrial Strategy that will support growth sectors to create more high-quality, well-paid jobs across the country, backed by employment rights fit for a modern economy.

The EU and the US are two of our largest trading markets, together accounting for over 64% of total UK trade. We are committed to strengthening our trade and investment relationships with both the EU and US and to working together to remove unnecessary barriers to trade

As set out by the Chancellor, we recognise that our markets are highly interconnected. This government’s main priority is growing the UK economy – strengthened trade with our most economically important partners is a major part of that.

Start-ups play a crucial role in fostering competition, inducing innovation and supporting the emergence of brand new sectors. The number of UK business births has fallen by 6%, to around 316,000 in 2023.

ONS UK Business Demography 2023, published 18 November 2024.

The Government is committed to hardwiring the voice of small business into everything we do. Our Small Business Strategy next year will set out our vision for all small businesses from tackling the scourge of late payments, tailored Business Support Advice, Access to finance, and Local Growth Hubs Networks, providing a strong business environment to drive economic growth in the UK.

The Government is creating a fairer business rate system by introducing permanently lower tax rates for retail, hospitality, and leisure businesses from 2026-27 and extending the current relief for 1 year at 40%. From 2026-27 the Government intends to introduce permanently lower tax rates for retail, hospitality and leisure properties with rateable values less than £500,000, which will be funded by the introduction of a Large Business Multiplier from 2026-27 on properties with a rateable value of £500,000 and above (less than 1% of all properties.)

The Government recognises the need to protect the smallest employers which is why we have more than doubled the Employment Allowance to £10,500, meaning more than half of businesses with NICs liabilities either gain or see no change next year. Businesses will still be able to claim employer NICs reliefs including those for under 21s and under 25 apprentices, where eligible. We will transform the apprenticeship levy into a more flexible growth and skills levy to support business and boost opportunity.

We are working further with the Hospitality Sector Council to address other strategic issues such as high street regeneration, skills, sustainability, and productivity.

The Government has developed a number of initiatives to increase the number of workers with AI-driven skills.

DBT’s Global Talent Network AI Futures programme attracts top young AI talents to the UK by focusing on exceptional international early to mid-career AI researchers, engineers, and entrepreneurs which will support the upskilling of our domestic workforce.

Skills England will build the highly trained workforce needed to deliver the national, regional and local skills needs of the next decade by setting both young people and adults up to succeed in an increasingly technology-driven world.

The AI Action Plan, commissioned by the Technology Secretary and drafted by the tech entrepreneur Matt Clifford, will set out, in part, the steps needed to equip our workforce with the right skills to support the AI sector’s growth.

.

Stellantis announced a strategic review of the UK operations this July. We have regularly engaged with the company throughout and stand ready to help following its conclusion. Stellantis transformed their plant at Ellesmere Port to solely produce electric vans from 2023 following a £100m investment that was secured with HMG support. Stellantis also announced that they will make small volumes of the larger electric vans at their plant at Luton.

This Government is focused on its five-point plan to breathe life back into Britain’s high streets. We understand how important the high street is to our businesses which is why our plans include tackling retail crime, ensuring a level playing field between online and high street businesses, stamping out late payments and ending the blight of empty spaces. This work will ensure that our high streets are great places for our businesses, supporting economic growth across the UK.

I am looking forward to working with the Sector Councils for Retail and Hospitality on the strategic issues facing the sectors, including high street regeneration and investment, labour and retail careers, sustainability and supply chain resilience.

Steel is vital for a vibrant, secure economy. This Government is working in partnership with trade unions and industry to secure a green steel transition that’s both right for the workforce and delivers economic growth.

We have already agreed a better deal for steelworkers at Tata Steel and are continuing negotiations with British Steel. However, we are clear we need long-term jobs, not short-term subsidies.

We will publish a steel strategy in spring. This will guide our commitment to invest £2.5 billion in partnership with the private sector as part of our wider commitment to invest in jobs and boost growth across the UK.

We are committed to ensuring the UK remains a leading destination for companies to invest and do business. The International Investment Summit in October will showcase our commitment to partnering with global businesses to secure the investment we need for growth. We are answering investors’ calls for stability and predictability with our new Industrial Strategy, providing long-term confidence to invest. The National Wealth Fund will bring together key institutions to offer compelling propositions to investors.

We recognise that recent times have been challenging for business. The Government is committed to support small businesses. Our Plan for Small Business set out nine pledges, including a pledge to reduce the cost of energy bills. We will be setting out further detail over the coming months.

Total UK imports from Germany amounted to £89 billion in the 12 months to March 2024, a 6% increase in current prices (compared to the previous 12 months). The largest increase was for machinery and transport equipment up £5bn (13%), in particular cars up £4bn (22%) and aircraft up £1bn (153%).

This Government is committed to resetting our relationship with our European partners. The Secretary of State for Business and Trade has already met his German counterpart, Vice Chancellor Habeck, and discussed how we can grow trade further with Germany to support sustainable growth for our businesses, workers and consumers.

The first mission of this Government is to drive economic growth. As part of delivering that mission, the Government will publish a trade strategy, aligned with our industrial strategy, to support jobs and communities in every part of the UK. Free Trade Agreements have a critical role to play in delivering this.

The Government has set out its intention to deliver trade negotiations with key trading partners including the GCC and India. Our trade programme, which is driven by engagement with businesses and stakeholders, will play to the UK’s strengths, boost trade, and strengthen our ties with our international partners.

Through the Plan to Make Work Pay we will deliver a new deal for working people. A number of these measures already have strong support from businesses, and we will consult with them as we put these plans into practice to ensure they are as effective as possible. We also expect that stronger employment practices could aid recruitment and retention, and ultimately save business costs.

The Department for Business and Trade wants to reset our relationship with the EU and deepen ties with our European neighbours.

The Department will work to improve the UK's trade and investment relationship by tearing down unnecessary barriers to trade.

The Department will seek to negotiate a veterinary agreement to prevent unnecessary border checks, to help touring artists, and to secure mutual recognition for professional qualifications to open up priority markets for service exporters.

The Secretary of State has already held positive discussions with his European Commission counterpart Valdis Dombrovskis and has met with German Vice-Chancellor Robert Habeck to discuss UK-German shared trade interests.

Electricity imports enhance security of supply by providing access to a more diverse generation pool that complements our domestic energy mix. They provide system flexibility by responding to changes in supply and demand, which is vital as we continue to integrate more renewable energy sources with intermittent generation.

In their Winter Outlook, the National Energy System Operator expects full interconnector availability for most of this winter, with 6.6GW of capacity obliged to import if needed through the Capacity Market. This is up 1.5GW from last winter and underpinned by comprehensive legal and treaty protections to ensure the market remains open.

Winter Outlook | National Energy System Operator

As the first step towards the Warm Homes Plan, the Government has committed an initial £3.4 billion over the next 3 years towards heat decarbonisation and household energy efficiency, with £1bn of this allocated to next year. Additional funding will be considered in Phase 2 of the Spending Review, as the Warm Homes Plan is further developed.

In addition to the £3.4 billion of direct capital spend, the Government is ensuring continued further investment of up to £1.4bn through the supplier obligation schemes in 2025/26: the Energy Company Obligation (ECO4) and Great British Insulation Scheme (GBIS) which we are now reforming to improve delivery and ensure consumers save more on their energy bills.

Accelerating to net zero will unlock a range of benefits for businesses, including new market opportunities, access to green finance and reduced energy bills.

Climate Change Agreements provide tax discounts for businesses reducing their emissions, and the Industrial Energy Transformation Fund supports industrial sites with high energy use to transition.

We are currently running a pilot in the West Midlands, providing energy audits and grants to small and medium businesses to support them in decarbonising.

Small and medium-sized businesses can visit the UK Business Climate Hub, which is run in partnership with government, for advice and sources of finance or support on reducing emissions.

There are different levels of smart meter penetration across Great Britain. The Department collects and publishes annual statistics on electricity smart meter installation progress at a regional level.

The latest regional statistics show that at the end of March 2024, 64% of domestic electricity meters across Great Britain were smart.

Local Authorities with the highest number of smart meters (74% - 75%) are in the East Midlands, North East, and Yorkshire and The Humber. London and Scotland have experienced slower progress to date, where 54% and 51% of meters were smart respectively.

The Government is interested in opportunities to reduce decommissioning costs in the North Sea/UK Continental Shelf. We work closely with the North Sea Transition Authority, Oil and Gas industry partners, and those working on new and emerging technologies in support of this aim.

The Government is committed to transforming Britain into a clean energy superpower and is working closely with Ofgem; to ensure energy is fair and affordable for consumers now and in the future.

Ofgem already regulate the cost of the transmission network, which safely and efficiently transports gas across GB, and under the current price cap represents an average annual cost of £7 per consumer.

Capacity of GB’s gas storage is not regulated by Ofgem however analysis published the Energy Security Plan Update in December 2023 shows we have sufficient and flexible gas storage to meet peak gas demand on any given day.

The Government will continue to deliver the Warm Home Discount, which provides a £150 rebate off energy bills for eligible low-income households. We expect around 3 million households to receive this support this winter.

My Hon. Friend the Minister for Energy Consumers has met with energy suppliers on several occasions and encouraged them to build on the Voluntary Debt Commitment for this winter, and we are continuing to work with suppliers to ensure consumers are supported.

The Government has announced work to strengthen cooperation on energy as per the joint-statement between the Prime Minister and the President of the European Commission at her visit to the UK in early October.

They agreed to work closely to address global challenges including, among others, climate change and energy prices.