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.
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 the increase in minimum wage on 1 April on the number of job vacancies.
Answered by Baroness Jones of Whitchurch - Baroness in Waiting (HM Household) (Whip)
As set out in the Impact Assessment accompanying the 2025 National Minimum Wage and National Living Wage (NLW) rates, the economic literature to date shows that increases to the NLW have had a limited impact on labour demand.
There were around 816,000 vacancies in December 2024 to February 2025, broadly unchanged on the quarter, based on the latest official data.
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 (1) the introduction of 25 per cent tariffs on European car imports to the United States, and (2) the impact of those tariffs on UK car exports.
Answered by Baroness Gustafsson - Minister of State (Department for Business and Trade)
We’re disappointed by the decision to impose global tariffs of 25% on the auto imports and know this will be deeply concerning for our automotive sector. We support our automotive industry, and in the first instance we will continue to pursue a deal that works for both us and the US.
We have backed the auto sector with £2 billion to support the transition of domestic manufacturing and £300 million announced in the Budget to drive uptake of electric vehicles. We will also use our Industrial Strategy to strengthen UK automotive competitiveness.
This government is clear that we will always do what is necessary to defend the UK’s national interest. This is why the government has launched a request for input from businesses to help shape our response to US tariffs.
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 strengthen trade relations with the United States of America, particularly in the technology and digital sectors.
Answered by Baroness Jones of Whitchurch - Baroness in Waiting (HM Household) (Whip)
The UK-US relationship is already very strong, with trade worth £315 billion in 2024, and shared investment of over £1.2 trillion at the end of 2023.
As you will be aware, on Tuesday 18 March, the Secretary of State for Business and Trade met with US Commerce Secretary Howard Lutnick, US Trade Representative Jamieson Greer and the Special Envoy to the UK Mark Burnett in Washington DC. The meeting followed last month’s agreement between the Prime Minister and President Trump that teams would start working together on an Economic Prosperity Deal, building on our shared strengths and commitment to economic security.