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 net zero targets on the car industry in the UK, particularly in relation to new vehicle manufacturing.
Answered by Baroness Jones of Whitchurch - Baroness in Waiting (HM Household) (Whip)
The Secretary of State and Minister Sarah Jones speak to the automotive industry regularly, so we know targets are important for certainty. We also need to ensure the transition to Zero Emission vehicles works for industry. That is why the Department for Transport has recently sought views from industry on how Government can best support it to meet the targets in the Zero Emission Vehicle mandate. The response will be published in the near future.
This Government has also committed over £2 billion of funding to 2030 for zero emission vehicle manufacturing and supply chains. This support will be crucial for scaling up green technologies - supporting growth across the UK.
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 statement by the British Retail Consortium that 160,000 part-time retail jobs may be at risk as a result of regulatory changes and increased employer costs.
Answered by Baroness Jones of Whitchurch - Baroness in Waiting (HM Household) (Whip)
The Government is creating a fairer business rate system and transforming the apprenticeship levy to support business and boost opportunities.
Delivering on our plan to Make Work Pay is a core part of the Government's Plan for Change, supporting the mission to grow the economy, raise living standards and create opportunities for all. The Department has published a set of Impact Assessments that provide a comprehensive analysis on the potential impact of the Employment Rights Bill. This analysis includes consideration of increases in labour costs for businesses and the subsequent effects. This analysis is available at: https://www.gov.uk/guidance/employment-rights-bill-impact-assessments.
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 ensure that the Department for Business and Trade has sufficient resources to attract inward investment into the UK.
Answered by Baroness Gustafsson - Minister of State (Department for Business and Trade)
We are expanding the Office for Investment to ensure it is fit for purpose and has the capability needed to continue to showcase the UK as the first choice for investment and the best place in the world to do business. The enhanced OfI will originate and execute major deals, develop commercially attractive investment propositions, market the UK to investors globally, and coordinate investment activity across Government. This will ensure that the UK continues to be a world leader for attracting international investment which is central to our mission to drive growth, job creation and productivity across the UK.
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 UK's trade relations with the EU could harm the UK's trade relations with the United States.
Answered by Baroness Jones of Whitchurch - Baroness in Waiting (HM Household) (Whip)
The Prime Minister has made clear that the UK is not choosing between the US and the EU. As set out by the Chancellor, we recognise that our markets are highly interconnected. This government's main priority is growing the UK economy - strengthening trade with our most economically important markets is a major part of that.
We are committed to continuing our work with both the US and the EU to remove barriers to trade and help UK businesses grow.
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 enhance productivity in the UK; and whether artificial intelligence has a role to play in achieving this.
Answered by Baroness Jones of Whitchurch - Baroness in Waiting (HM Household) (Whip)
The UK Government is committed to building a world-leading Artificial Intelligence (AI) sector, encouraging investment, and enabling adoption across the economy. Our ambition is to shape the AI revolution on principles of shared economic prosperity, improved public services and increased personal opportunities.
On 13 January, the Prime Minister announced the AI Opportunities Action Plan.
This Government is committed to implementing all 50 recommendations outlined in the Plan. Delivering the Plan will lay the foundations for AI growth, drive adoption across the economy and build UK capability.
The Technology Adoption Review will also provide practical recommendations on how the Government can work with businesses to address barriers they face when adopting both established and novel technologies, with a focus on the 8 growth-driving sectors identified in the Industrial Strategy green paper.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government, in view of the 12 per cent fall in vehicle manufacturing in the United Kingdom between 2023 and 2024, what plans they have to support that industry.
Answered by Baroness Jones of Whitchurch - Baroness in Waiting (HM Household) (Whip)
Our automotive industry directly supports over 150,000 jobs and contributes £19.4 billion to the economy - it is a growth sector. Production did dip last year, due in part to weaker global demand, but also because factories are retooling to build Electric Vehicles - so, we remain confident in the sector.
That is why the Budget included a £2 billion commitment to build on previous innovation programmes that have leveraged over £6bn of investment from the private sector. Just last month, this government, Nissan and JATCO (a component manufacturer) secured a £50 million deal to establish JATCO's first European manufacturing site in Sunderland.
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 effectiveness of remote working and its impact on productivity levels.
Answered by Baroness Jones of Whitchurch - Baroness in Waiting (HM Household) (Whip)
The government continues to monitor the impact of flexible working.
According to recent ONS data, the trend in working only from home has fallen since 2021, and a hybrid working model has become the ‘new normal’ for around a quarter of workers.
Reported benefits of remote working include improved recruitment, inclusivity, wellbeing, and productivity, and reduced employer overheads. Furthermore, the ONS’ Business Insights and Conditions Survey covering 18 November to 1 December 2024 found that, of those that have adopted or extended homeworking, 43% reported that this was due to increased productivity.
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 risk that increased labour costs could cause firms (1) to hire fewer workers, and (2) to replace jobs with robots and artificial intelligence technologies.
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.
My department has published a set of Impact Assessments that provide a comprehensive analysis on the potential impact of the Employment Rights Bill. This analysis includes consideration of increases in labour costs for businesses and the subsequent effects. This analysis is available at: https://www.gov.uk/guidance/employment-rights-bill-impact-assessments
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 ensure the UK remains the largest market for international investment in Europe, and whether the artificial intelligence sector can play a role in achieving this.
Answered by Baroness Gustafsson - Minister of State (Department for Business and Trade)
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.
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 merits of increasing trade relations with the EU, particularly by joining the European Union Customs Union.
Answered by Baroness Gustafsson - Minister of State (Department for Business and Trade)
This government is committed to trade policy that is based on data, and the evidence is clear that better trading relations with the EU are crucial to the overarching goal of better economic growth.
However, as Minister Nick Thomas-Symonds said at the Business and Trade Select Committee on 21 January, we have a democratic mandate, as set out in our manifesto, not to return to the single market or join the Customs Union.