Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government what steps they are taking to support small businesses with receiving payments owed to them and to encourage the prompt repayment of invoices.
Answered by Baroness Jones of Whitchurch - Baroness in Waiting (HM Household) (Whip)
Late payments are one of the biggest problems facing small businesses and the self-employed.
In September 2024 we announced a package of new measures aimed at tackling late payments and supporting small businesses, these included:
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government what assessment they have made of the impact of energy costs on factory activity in the UK.
Answered by Baroness Gustafsson - Minister of State (Department for Business and Trade)
The Government recognises that high energy costs impact factory activity and undermine investment in manufacturing. Therefore, we announced in the Industrial Strategy the British Industrial Competitiveness Scheme, to reduce industrial electricity prices by around 20-25% from 2027. This new scheme could benefit over 7,000 manufacturing businesses, including those in automotive and defence sectors. We will consult on precise eligibility shortly.
For existing Supercharger recipients, we will also increase Network Charging Compensation from 60% to 90%, saving eligible energy intensive industries a further £10 per megawatt-hour.
We are also continuing compensation of indirect carbon costs from electricity generation for eligible sectors.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government what assessment they have made of the amount of capital in the United Kingdom being invested overseas, particularly in the United States of America; and whether they intend to introduce measures to encourage greater investment within the United Kingdom.
Answered by Baroness Gustafsson - Minister of State (Department for Business and Trade)
The total stock of UK assets invested abroad was £13.4 trillion in 2023 according to the ONS Pink Book of this £4.7 trillion was invested in the United States. While the total stock of foreign investment in the UK was £14.1 trillion in 2023. The UK government promotes and facilitates inward foreign direct investment in the UK through the newly expanded Office for Investment (OFI), FDI leads to direct economic benefits for the UK. The UK allows free movement of international capital, both inward and outward investment can lead to business opportunities, higher economic growth and higher investment returns.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government what assessment they have made of how the US–UK Economic Prosperity Deal will affect the development of trade agreements with other countries.
Answered by Baroness Gustafsson - Minister of State (Department for Business and Trade)
The UK-US Economic Prosperity Deal is separate to our negotiations with other countries. We are working to improve our trading relationships with other nations alongside our work with the US. For example, the UK concluded a landmark trade deal with India on 6 May, and on 19 May the Prime Minister confirmed a new agreement with the European Union which will deliver on his core mission to grow the economy, back British jobs and put more money in people’s pockets.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government what assessment they have made of the reports that foreign direct investment in the United Kingdom has declined in the past year, and what steps they are taking to reverse any decline.
Answered by Baroness Gustafsson - Minister of State (Department for Business and Trade)
The latest PwC survey of Global CEOs showed the UK is now the second most important destination for international investment after the US – beating Germany, China and India [1]. The FT Report 2025 also reaffirmed our status as the leading destination in Europe for Greenfield FDI in 2024, marking the UK’s second-highest recorded investment level.
Additionally, the Department for Business and Trade has been working at pace to develop an Industrial Strategy based on businesses’ responses to the Invest 2035 Green Paper and ongoing engagement with industry. This strategy builds on the government’s commitment to unleash the full potential of UK cities and regions by attracting investment and fostering an environment where businesses can thrive.
[1] https://www.pwc.co.uk/press-room/press-releases/research-commentary/2024/global-ceos-rank-uk-most-important-market-after-us---pwc-s-28th-.html
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government what assessment they have made of potential for trade agreements with African countries, and which sectors they are prioritising for such agreements.
Answered by Baroness Gustafsson - Minister of State (Department for Business and Trade)
The UK has nine trade agreements with 18 countries across Africa, including three association agreements covering Egypt, Morocco, and Tunisia in North Africa and six development-focussed Economic Partnership Agreements (EPAs) in sub-Saharan Africa. UK-African agreements focus on trade in goods. In addition, the UK has a unilateral trade preference scheme, called the Developing Country Trading Scheme, which offers 37 African countries generous preferential access to the UK market, with most countries eligible for tariff-free and duty-free access on all products, excluding arms and ammunition.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government what steps they are taking to support high street shops and to prevent further closures following the rise in National Insurance contributions.
Answered by Baroness Jones of Whitchurch - Baroness in Waiting (HM Household) (Whip)
We intend to introduce permanently lower tax rates for retail, hospitality, and leisure (RHL) properties, including those on the high street, from 2026-27. Ahead of these changes being made, we have prevented RHL relief from ending in April 2025 by extending it for one year at 40 per cent up to a cash cap of £110,000 per business and frozen the small business multiplier.
The government is protecting the smallest businesses from changes to Employer National Insurance Contributions (NICs) by increasing the Employment Allowance to £10,500. This means that in 2025-26, 865,000 employers (43%) will pay no NICs at all.
Later this year we will publish our Small Business Strategy which will focus on, amongst other issues, what more we can do to support high streets.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government what assessment they have made of the survey by the British Retail Consortium on 29 April, particularly the finding that 52 per cent of human resources directors surveyed suggested the Employment Rights Bill would reduce staffing levels.
Answered by Baroness Jones of Whitchurch - Baroness in Waiting (HM Household) (Whip)
Delivering on our plan to Make Work Pay is a core part of the mission to grow the economy, raise living standards and create opportunities for all. We are committed to working in partnership with businesses to realise that ambition, enabling businesses and workers to thrive.
The Government has consulted with stakeholders extensively. We have collaborated directly with over 170 stakeholders, working in partnership to deliver on our Plan to Make Work Pay. Many of these conversations touch on research undertaken by external organisations.
My department has published a set of Impact Assessments that provide a comprehensive analysis on the potential impact of the Employment Rights Bill. This initial analysis includes consideration of the potential effects on employment; the risk is currently deemed low. This analysis is available at: Employment Rights Bill: impact assessments - GOV.UK. This represents the best estimate for the likely impacts given the current stage of policy development. We plan to refine our analysis as policy development continues, working closely with external experts, businesses and trade unions.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government what steps they are taking to encourage more investment into British publicly traded companies.
Answered by Baroness Gustafsson - Minister of State (Department for Business and Trade)
The UK government has been taking action to boost investment in British publicly traded companies by promoting stability and delivering the reforms needed to support growth as set out in the Chancellor’s Mansion House speech last year.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government what assessment they have made of the 10 percent tariffs that the United States of America has placed on United Kingdom imports; and how will this affect United Kingdom manufacturing and exports.
Answered by Baroness Jones of Whitchurch - Baroness in Waiting (HM Household) (Whip)
The Government is disappointed by the announcement of an increase in tariffs, which are not in the UK’s national interest, and we understand businesses are concerned.
That is why the government has been focused on negotiating an economic deal with the United States, and we will continue to engage with the US to understand the details of how these tariffs will be implemented.
We remain resolute in our support for UK industry across the board. We have already heard from a number of business organisations including the CBI and the British Chamber of Commerce, that they support our approach and want us to continue working to secure an economic deal with the US. Ministers and officials will continue to meet with impacted stakeholders from a range of sectors.