Andrew Griffith Portrait Andrew Griffith (Arundel and South Downs) (Con)
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I thank the Secretary of State for taking the time to brief me last night ahead of today’s sitting, and for advance sight of his speech.

To fail to prepare is to prepare to fail. What a way to proceed: recalling Parliament for only the sixth occasion since the end of the second world war to debate a Bill published only 90 minutes ago. This would be conduct unbecoming of a parish council. Our country, our economy and this Parliament all deserve better. That is why the amendment in my name would at least put a sunset on the Bill, and I hope the Government will accept it.

Today is not a failure by the steelworkers of Scunthorpe and elsewhere, their families or the community. They have toiled for generations to ensure that we have the primary steel we need for our structures, our safety and our security. This is a failure on the Government’s watch. Let us be crystal clear what today means: we are entering a tunnel with only one exit. This is a botched nationalisation plan, revealing that the Government have no plan.

In government, we acted to secure Port Talbot and we were negotiating a plan, including British Steel’s preferred option of an electric arc furnace on Teesside, which would have limited job losses and kept Scunthorpe running in transition. Once again, when Labour negotiates, Britain loses—the Chagos islands, US tariffs, the train drivers and now this latest crisis. A bad toolmaker blames his tools, but this time the Government have only themselves to blame.

Matt Western Portrait Matt Western (Warwick and Leamington) (Lab)
- Hansard - - - Excerpts

Does the hon. Gentleman not accept that, in the years between 2010 and 2023, steel production in this country fell by 50% —40% to 50%—and does that not underline the lack of strategy under the previous Government?

Andrew Griffith Portrait Andrew Griffith
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I will talk about the difficulties facing steel around the world, but let us just be clear what is happening today: the British people must not have lost their winter fuel allowance and their disability benefits in order that China can walk away from its liabilities, leaving British taxpayers to pick up the bills.

Steel needs energy, and energy needs steel. No one denies that steelmaking has been difficult for some time, but Scunthorpe is the victim of a dishonesty that pretends it is better for the environment to ship coke halfway around the planet than from down the road, and of an energy policy that has driven costs higher than in any competing nation. No one is more responsible for this than the Energy Secretary and the Prime Minister who appointed him.

Graham Stuart Portrait Graham Stuart
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Will my hon. Friend give way? [Interruption.]

Graham Stuart Portrait Graham Stuart
- Hansard - - - Excerpts

I assume that applies after the warning, Mr Speaker.

We have a Government who, I believe, are shipping coking coal just off the Lincolnshire coast today from Japan, when it was perfectly possible to have the world’s greenest production of coking coal in Cumbria, with thousands of jobs. Is it not a disgrace that this Government turned their back on jobs in Cumbria and, indeed, in the North sea because they put ideology ahead of practicality and even ahead of the environment?

Andrew Griffith Portrait Andrew Griffith
- Hansard - -

My right hon. Friend is absolutely right. It is sad to say that Scunthorpe is the victim of exactly that policy: putting ideology before British interests.

None Portrait Several hon. Members rose—
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Andrew Griffith Portrait Andrew Griffith
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I will make some progress.

Millions of other businesses are also struggling with their energy bills, which is why the Chancellor’s tax choices have been so devastating. Steel may be the first domino to topple, but glass, chemicals, cars and concrete are other industries at risk. Does the Prime Minister envisage a whole series of Saturday sittings, or will he change course today and cut energy costs now, and not in 10 years’ time when it is too late?

Wera Hobhouse Portrait Wera Hobhouse (Bath) (LD)
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We are hearing about the previous Government’s efforts to save British Steel, and we have heard a somewhat confusing account of the deal that the now Leader of the Opposition negotiated. If such a deal existed, can we see a record of it?

Andrew Griffith Portrait Andrew Griffith
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My right hon. Friend the Leader of the Opposition has made it extremely clear that the deal was being negotiated, and the point about it being negotiated is that it would have been concluded after the election.

None Portrait Several hon. Members rose—
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Andrew Griffith Portrait Andrew Griffith
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I will make some progress.

It did not need to be this way. My hon. Friend the Member for Brigg and Immingham (Martin Vickers) has been warning of a growing threat since last September. The Mayor of Tees Valley has been asking the Government to present their plan for steel for months. Rob Waltham, the leader of North Lincolnshire council, has done all he can to support steelmaking in Scunthorpe. And, on 4 April, Ed Conway of Sky News showed the world that we were just days away from the risk of the furnaces shutting down. But the Government did not listen and they did not act.

It has been almost 10 days since Parliament last debated substantive Government business. Rather than this rushed, one minute to midnight Bill, we could have used that time for proper debate, proper process and proper scrutiny. This is indefensible incompetence. Despite years to prepare, it is clear that the Government came into office with no plan. There is no steel strategy, there is no industrial strategy, there is no export strategy, and now we have this botched nationalisation.

The Secretary of State says that his preference is to find a commercial partner, but let us be serious. Do the Government think that is likely, after attacking business with a £25 billion jobs tax and his Bill to create the most hostile environment for employers since the 1970s? On the Chancellor’s watch, in case she has not noticed, all the flow is of investors leaving this country.

Dawn Butler Portrait Dawn Butler
- Hansard - - - Excerpts

I am still a little confused about the deal negotiated by the last Government. As the Leader of the Opposition did not answer, could the hon. Gentleman please clarify the situation for the House?

Andrew Griffith Portrait Andrew Griffith
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I am not surprised that the hon. Lady is a little confused; as I said, the Government have failed to lay out their plan and to afford this House the opportunity to debate it. Everything that we have heard this morning says that the Government have not really thought this through. Steelmaking is complex, intense and highly operational. Iron ore has to reach thousands of degrees to become molten iron. It is a dangerous process that poses a serious risk to health. In Birmingham, Labour struggle to collect the bins—

None Portrait Several hon. Members rose—
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--- Later in debate ---
Andrew Griffith Portrait Andrew Griffith
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Sit down. From midnight, the Chancellor will be standing behind the payroll, settling every bill with every supplier, even if they are in arrears. If these decisions no longer sit with the plant owner, where does the buck stop? Old Admiralty Building? The Treasury? No. 10? How can other steel providers have any confidence in the impartiality of the Government’s steel strategy if the umpire is now on the pitch? What assessment have the Government made of the impact of the Bill on public finances? There is no impact assessment.

The Government have been talking to British Steel for nine months. They have put at least £500 million of taxpayers’ money on the table. Surely by now, the Business Secretary and his officials have a comprehensive understanding of the cost of the actions that he is asking us to vote for. What disrespect it shows to this House for the Government to come along today, having recalled Parliament, after nine months of failing to land a deal, and ask us for a blank cheque. That is no way to run a corner shop, let alone the country. Has anyone in Government asked the Office for National Statistics—

None Portrait Several hon. Members rose—
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Andrew Griffith Portrait Andrew Griffith
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If they sit down, they might learn something.

Lindsay Hoyle Portrait Mr Speaker
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You will sit down, actually. It is the hon. Gentleman’s choice whether he gives way, so Members should stop hanging around.

Andrew Griffith Portrait Andrew Griffith
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I will take an intervention if someone wants to answer this question: has anyone in Government asked the ONS whether, as a result of the powers that are being taken in this Bill, from today British Steel will be classified as publicly owned, whether it has been formally nationalised or not? No answers.

Andrew Griffith Portrait Andrew Griffith
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That is a bit slow. [Interruption.] Go on then.

Bill Esterson Portrait Bill Esterson
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That is a relevant question, given that the hon. Gentleman was Boris Johnson’s business adviser when the Jingye deal was being negotiated. What advice did he give Boris Johnson about whether to accept that deal?

Andrew Griffith Portrait Andrew Griffith
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Disappointingly, there was no answer to my important question about the ONS and whether this asset will sit on the Government’s balance sheet. Perhaps when the Minister winds up, he will provide an answer to that important question that affects the nation’s finances.

The markets know, the world knows and we know that the Chancellor’s headroom was inadequate from the very moment that she sat down after her last emergency Budget. Only this week, the Bank of England took the unprecedented step of cancelling the planned sale of Government bonds. Today’s botched nationalisation will further unsettle international markets. When will the Chancellor be presenting her next emergency Budget, and what are her plans to update the markets?

There we are: a disrespect of this House; the Government treating Parliament with disdain; nine months of dither and delay; and a botched nationalisation of steelmaking, with the British taxpayer on the hook. It is crystal clear that when Labour negotiates, Britain loses. This is not a serious Government. It is a Government shaped by events, not in control of them. It is government by sulky teenager—not sharing their plans, not answering the question, and when it goes wrong, it is everyone’s fault but theirs.

Lindsay Hoyle Portrait Mr Speaker
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I call the Chair of the Business and Trade Committee.

UK-US Trade and Tariffs

Andrew Griffith Excerpts
Thursday 3rd April 2025

(1 week, 6 days ago)

Commons Chamber
Read Full debate Read Hansard Text Watch Debate Read Debate Ministerial Extracts
Andrew Griffith Portrait Andrew Griffith (Arundel and South Downs) (Con)
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I thank the Secretary of State for advance sight of his statement.

Businesses, workers and their families woke up this morning with greater fear and more uncertainty about their future. Tariffs make us all poorer by pushing up costs, suppressing demand and making the pound in our pocket buy less of the things we need. It is free trade to which we owe our past prosperity, and free trade that has lifted billions out of poverty since the second world war.

This is a moment for calm words and cool heads, and we will support the Government when they do sensible things to reverse the impacts on our already fragile economy. I am glad they have recommitted to reaching a deal with our closest ally and largest single country trading partner. However, this is also a moment for honesty and telling the truth. The Government, sadly, got no special favours from the White House last night. The Secretary of State refers to vindication. This is no vindication at all. We are in precisely the same band as the Congo, Costa Rica, Kosovo and Christmas Island. In fact, I can count more than 125 countries and territories that have the same US tariff levels as we now do—not that special.

Our automotive manufacturers face unchanged tariffs of 25% on around £8 billion-worth of cars and auto parts exports. Steel and aluminium exports remain at 25% and, on a volume-weighted basis, our exports face an average tariff of closer to 13%.

Above all, last night was a vindication of those who were pilloried and abused for wanting our country to have the freedom to decide our own trade policy. If Labour and the Liberal Democrats had their way, we would still be in the EU. As the Prime Minister acknowledged this morning, thousands of British jobs have been saved today as the result. I hope that he and his colleagues had the decency to regret the 48 times that they voted to stay in Europe, and to thank us for getting Brexit done.

Last week, the OBR warned that these tariffs could knock up to 1% off GDP. We are already in a per capita recession and markets are falling this morning. It is businesses that create jobs and grow our economy, yet, at every turn, the Government have piled on headwinds when they need our support. They put a tax on jobs, more than doubled business rates for many, introduced the family business death tax and are barrelling ahead with flawed recycling charges. No wonder business confidence remains at rock bottom.

To help British exporters survive, the Government must urgently tackle our sky-high energy costs. A business in Birmingham, west midlands, faces energy costs that are four times those of its competitors in Birmingham, Alabama in the US. That dwarfs the impact of tariffs and is no basis on which to compete.

The Secretary of State was responsible for the Employment Rights Bill, which will hit businesses so hard that the OBR has not even begun to assess how much it will hurt the economy. Now is the time, today is the day for the Secretary of State to walk back to his Department and, in the national interest, instruct his officials to shelve the Employment Rights Bill. He should put ideology aside, put the unions on hold and put the Government on the side of British business. The cost of failure is too high, the burdens on business are too great and time is too precious, the Secretary of State must act and act fast.

Let me conclude with some questions for the Secretary of State on behalf of all our constituents. Will he publish an urgent assessment of the impact of today’s tariffs on the UK economy so that the markets can see whether the Chancellor’s emergency Budget sums still add up, or whether she will be back for more taxes? When will he give the car makers the clarity they need on the ZEV—zero emission vehicle—mandate? Will he undertake to keep Parliament informed and to publish the UK’s broader objectives—not its negotiating strategy, but the broader objectives—in these trade negotiations with the UK, precisely as the previous Government did in March 2020? Will he assure us that any deal will back British farmers and food producers and uphold our high environmental protection and animal welfare standards, which we have enhanced and upheld in the agreements that we have reached since leaving the EU?

Will the Secretary of State now surge additional resources for exporters, reallocating resources across Government to fund a new version of the UK trade show programme and enlarge the GREAT campaign? What consideration are the Government giving to the special situation of Northern Ireland? Will he guarantee that all claims under the duty reimbursement scheme for Northern Ireland will be paid promptly and the Government will commit additional resources when required? Can he reassure us that, in the event the UK did see a major trade distortion in Northern Ireland, the Government would be prepared, if necessary, to trigger article 16 of the Windsor framework? Will he reassure the House that any concessions to UK tech giants on the digital services tax will not simply shift the burden to the United Kingdom’s small businesses?

The Conservatives are on the side of business and Britain. We understand the gravity of the situation, and we will support the Government where they act in the national interest. I hope that they will take this moment seriously, get back around the table with their US counter- parts and involve the House in their deliberations.

Jonathan Reynolds Portrait Jonathan Reynolds
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I thank the shadow Secretary of State for his response and his tone in responding. I recognise his commitment to free trade and the case he has made for it. I believe it is something we broadly share. He asks for honesty—that is always good in Parliament—but he is a little bit flippant about the position we find ourselves in today. He mentions a series of countries—Christmas Island, Kosovo—that do not have the kind of complex trading relationship that we have with the United States.

The shadow Secretary of State can see from my tone, presentation and words that I am disappointed that we are in this position, but I look at the EU, facing a tariff of 20%; at Japan with 24%; at India with 26%; and at Canada and Mexico with 25% tariffs already in place. Yes, we are in a more favourable position compared with those key friends and allies, but we must go further, especially in relation to the tariffs on the automotive sector, which is a particular concern for me.

The shadow Secretary of State again brings up Brexit, which was perhaps not the Conservative party’s finest hour in preparing the state for large trade shocks, but let us pass over that. As the President of the Board of Trade, I am of the view that it is good that we can set our own trade policy, but I say to him and to all colleagues: is it not time that we try to unite the country for the future, rather than keep on harking back to the past? Is that not how we will find our way through this? Half the country voted one way, and half voted the other way, but let us build together and look to the future. It is the right way forward. My next point is very important: it is false to see this as a choice between working with the US and working with the EU. We can work in a way that is consistent with both, and we should all be committed to that.

The shadow Secretary of State also asked about the implications for the United Kingdom. Broadly, he asked me to reverse a series of policy choices made in the last 14 years; I will go through all of those. In relation to the spring statement, the Chancellor had already rebuilt the headroom substantially higher, due to the global turbulence, than that bequeathed her by the Conservative party.

On the Conservatives’ spending plans, they left no business rates relief whatever: it was a one-year relief, rolled over, that never had any longevity. I have not yet received any credible proposals on how their spending plans would be paid for, but I am always available to receive those in writing.

The shadow Secretary of State asks for reassurance, which we are always happy to provide on domestic policy changes. On things like the ZEV mandate for the automative sector, we are more pragmatic than the Conservative party was when in office. As he knows, the Department for Transport leads on that policy, but our response to the consultation on potential changes will be published soon. As colleagues would expect, I will not comment on the details of any negotiations with the US.

In our manifesto, we committed to the UK’s sanitary, phytosanitary and food safety standards system. Of course the Government will adhere to that. The shadow Secretary of State also knows that we are imminently preparing to publish our trade strategy, which covers a lot of these issues, particularly around support for exporters that we want to proceed with.

Northern Ireland is an incredibly important issue for all colleagues. The potential for a differential response from the European Union could lead to a difficult situation in Northern Ireland. As the Secretary of State highlights, the key policy is the duty reimbursement scheme, because goods entering Northern Ireland from the US that will not go into the wider single market are subject to the reimbursement programme. We must make sure that that works well. I recognise the points that he has made on it, and I will continue to update the House and all colleagues on our work in this area. I recognise how important and relevant it is to all our constituents, so we will endeavour to keep all colleagues updated on progress.

Andrew Griffith Portrait Andrew Griffith (Arundel and South Downs) (Con)
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I beg to move an amendment, to leave out from “That” to the end of the Question and add:

“this House declines to give a Second Reading to the Product Regulation and Metrology Bill [Lords] because it will provide for regulatory alignment with the European Union, and it has been condemned three times by the House of Lords Delegated Powers and Regulatory Reform Committee as a skeleton Bill which provides, without justification, inappropriately wide powers for Ministers to re-write the regulatory regimes for product safety and the weights and measures of goods by regulations.”

Too often when the public think of Parliament, they think of out-of-touch power and bad laws. The Bill is the archetype of everything that is wrong with Westminster. There should be an unwritten rule in this postcode: never trust a Bill with a convoluted name. This Bill is no exception.

Although it professes to simplify our regulatory framework, the reality is that this is an EU Trojan horse of a Bill, which will sabotage our Brexit freedoms, undermine the integrity of the United Kingdom, disrespect Parliament, befuddle British business with uncertainty and take us back to being a Brussels rule-taker—all from a party that voted 48 times to overturn the will of the British people.

Jonathan Reynolds Portrait Jonathan Reynolds
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Will the hon. Member give way?

Andrew Griffith Portrait Andrew Griffith
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I will not, but before I get into further—[Interruption.] I will say something nice about the right hon. Gentleman in a minute.

Before I get into detail, let me welcome the Government’s U-turn on their plan to scrap the great British pint. Let us hope that that is the first of many. When I raised that on 26 February, Labour Members described it as “a conspiracy theory”. The hon. Member for St Albans (Daisy Cooper) said it was “scaremongering”, and the Exchequer Secretary to the Treasury, the hon. Member for Ealing North (James Murray), said that an amendment was no more needed than a

“law to say that the sun must rise in the morning.”—[Official Report, 26 February 2025; Vol. 762, c. 812.]

The truth is that the Government were caught red-handed trying to ditch our British pint by this back-door Bill. Had the Opposition not fought back, the power to crush the British pint would have rested on the whim of a Minister’s pen. Welcome though that U-turn is, let us not ignore the fact that the Labour Government wanted to give themselves the power in the first place.

Andrew Griffith Portrait Andrew Griffith
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I will give way to the hon. Member for Birmingham Northfield (Laurence Turner).

Laurence Turner Portrait Laurence Turner
- Hansard - - - Excerpts

I thank the shadow Minister for giving way, and I hope he will also give way to my right hon. Friend on the Front Bench. Will he tell the House what possible motive he thinks a Labour Government would have for scrapping the pint?

Andrew Griffith Portrait Andrew Griffith
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The Labour motive is all too plain to see. This is a Labour party that voted 48 times to reject the will of the British people, led by the Prime Minister, who sought a second referendum to overturn that will. I accept that the hon. Member for Birmingham Northfield was not in the House at the time, but he might want to spend some time with his colleagues in the Tea Room and hear precisely what happened.

Adam Thompson Portrait Adam Thompson
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Will the hon. Member give way?

Andrew Griffith Portrait Andrew Griffith
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No, I will make some progress.

The anti-pub, anti-hospitality agenda goes far beyond this Bill. The jobs tax, the threshold change, the attack on seasonal and flexible working, the more than doubling of business rates, the war on pub banter and the garden smoking ban are all from this Government. Our hospitality industry—the Secretary of State is smirking—deserves infinitely better than this from this Government.

Jonathan Reynolds Portrait Jonathan Reynolds
- Hansard - - - Excerpts

Will the hon. Member give way?

Andrew Griffith Portrait Andrew Griffith
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I am happy to give way if the right hon. Gentleman talks about what he will do to repeal the Employment Rights Bill.

Jonathan Reynolds Portrait Jonathan Reynolds
- Hansard - - - Excerpts

The hon. Member was a senior member of the previous Government and played a well-known role in the mini Budget, as well as a number of other things that that Government did. Will he confirm that they were planning exactly the same piece of legislation because of an absence in the statute book?

Andrew Griffith Portrait Andrew Griffith
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Once again, the Secretary of State has failed to engage on the key issue, which is that British businesses—[Interruption.] It is not funny. British businesses are bleeding out, business confidence is at a record low, unemployment is rising, and all the Government have to talk about is the past, not what they are currently delivering.

Iain Duncan Smith Portrait Sir Iain Duncan Smith
- Hansard - - - Excerpts

My hon. Friend was asked just now whether the previous Government were likely to have introduced this legislation. May I set the record straight? Had we done so, the Secretary of State would have voted against it.

Andrew Griffith Portrait Andrew Griffith
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My right hon. Friend has great wisdom on these matters.

Jonathan Reynolds Portrait Jonathan Reynolds
- Hansard - - - Excerpts

Will the hon. Member give way?

Andrew Griffith Portrait Andrew Griffith
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Let me move on. The biggest flaw of many in this Bill is that, as the hon. Member for Blackley and Middleton South (Graham Stringer) and my right hon. Friend the Member for Beverley and Holderness (Graham Stuart) have both identified, it hands over too much power with too little accountability. There is

“a real need to consider the balance between primary and secondary legislation, which in recent years has weighed too heavily in favour of delegated powers…excessive reliance on delegated powers, Henry VIII clauses, or skeleton legislation—”

such as this Bill—

“upsets the proper balance between Parliament and the executive.”

Those are not my words, but those of the Attorney General. They are taken from a speech that he made in October, while in government, about the importance of restoring parliamentary sovereignty. No one who considered that speech could fail to agree.

The Lords’ Delegated Powers and Regulatory Reform Committee has slammed the Bill not once, not twice, but three times, including after the Government’s changes were made. To put this into context, the wide powers contained in this 15-page Bill will allow Ministers unilaterally to amend product safety regulation, impose obligations on online marketplaces, meddle with standards for weights and measures or entirely align British regulatory standards with the European Union, posing a threat to the integrity of the UK internal market. It is 15 pages of the most egregious Whitehall overreach.

Esther McVey Portrait Esther McVey (Tatton) (Con)
- Hansard - - - Excerpts

Does my hon. Friend agree that this is yet another hammer blow to British businesses? We have had the Labour Government introducing £25 billion of tax with the employers’ national insurance contribution, £5 billion of costs with workers’ rights and a never-ending increase in energy bills as they drive forward on their net zero fantasy. Now they will be able to change regulation more or less on a whim, whenever they feel like it, destroying certainty and confidence for British businesses.

Andrew Griffith Portrait Andrew Griffith
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My right hon. Friend makes a serious and important point. I take the Secretary of State in good faith when he says that he desires for his Government to grow the economy—every Government should, and I believe that this Government should as well—but he must recognise that every single action he takes will take us further away from that goal by piling on the red tape and increasing the level of tax. The regulatory jeopardy in this Bill will do the same, by simply making it impossible to know what product regulations will look like. How can any business plan for the future when the powers offered up by the Bill introduce such a prospect of unpredictable regulatory change?

Christine Jardine Portrait Christine Jardine (Edinburgh West) (LD)
- Hansard - - - Excerpts

Does the hon. Gentleman not agree that someone sitting at home watching this will be worried by the argument that it is more important to stick to some anti-EU dogma than it is to protect their children from dangerous products, or to keep dangerous electric bikes off the market and regulate for their safety?

Andrew Griffith Portrait Andrew Griffith
- Hansard - -

With the very best will in the world, I think the hon. Lady can do a great deal better than that. As hon. Members have said, this House can legislate. If there are dangerous products, bring those use cases here, and I believe that across the House we will legislate rapidly to protect our constituents’ safety. However, our constituents did not send us here to pass a 15-page Bill full of skeleton powers to give the Secretary of State an unlimited ability to regulate without having to consult this place.

Stella Creasy Portrait Ms Stella Creasy (Walthamstow) (Lab/Co-op)
- Hansard - - - Excerpts

The challenge for many of us who were here during the previous Parliament, when the hon. Member was in office and had the power to diverge, is that we watched what happened and we saw the cost to British business. That is why the previous Government decided in the end to abandon the British charter mark, is it not? Would he care to tell the House how much proceeding with his plans would have cost British business? It was £1.6 billion, in case he does not know. British businesses need to hear that we get it. They do not want more paperwork; they want less.

Andrew Griffith Portrait Andrew Griffith
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I am genuinely intrigued, and I shall sit here and listen to the hon. Lady’s speech later on. Does she want divergence? Does she want us to use our Brexit freedoms, or does she seek to go back to being a rule taker and converge?

We have not heard a compelling argument from the Secretary of State today as to why these powers should be granted. It is right that we in this House adopt the precautionary principle, and if the Secretary of State, or the Minister in winding up, can give us some more compelling use cases, I am sure we would consider that.

Edward Leigh Portrait Sir Edward Leigh (Gainsborough) (Con)
- Hansard - - - Excerpts

This is all very important. There has been some merriment about the pint, but in the novel “Nineteen Eighty-Four” by George Orwell, the hero goes into a pub, and somebody there laments the fact that the despotic regime has just abolished the pint and forced people to drink litres. The road to serfdom is paved by many steps such as this. By the way, when I was Minister for consumer affairs many years ago, we regularly banned things. We did not need this Bill.

Andrew Griffith Portrait Andrew Griffith
- Hansard - -

My right hon. Friend makes the perfect point that this is precisely what the road to serfdom looks like, whether it is serfdom to an individual Minister at a moment in time or serfdom to an unelected Brussels bureaucratic elite. Why would we give up the powers of this House, the reason why we are sent here, and the ability to hold the Government to account?

Andrew Murrison Portrait Dr Murrison
- Hansard - - - Excerpts

The hon. Member described the Bill as a Trojan horse—it is more like a Trojan donkey. Does he agree that clause 2(7) is a particular problem, because it appears to take European Union regulations as the baseline for determining safety? To many of us, the assumption that European Union regulations should be the starting point for any safety regulations that we might want to make seems somewhat bizarre.

Andrew Griffith Portrait Andrew Griffith
- Hansard - -

The right hon. Gentleman is exactly right, and we can contrast the number of references to the European Union throughout the Bill with, for example, our biggest single country trading partner—the United States.

Jonathan Reynolds Portrait Jonathan Reynolds
- Hansard - - - Excerpts

I want to directly answer the point made by the right hon. Member for South West Wiltshire (Dr Murrison) and provide clarification that I have just sought. Clause 2(7)(a) is not about alignment; it is about recognition. We already recognise certain EU product requirements on a mutual recognition basis, and where it is of benefit to do so, that is what the clause allows. Rather than take European standards as the basis for our own and align with them, it enables that where it is recognised that we have the interest. I can write to him in detail if he wishes.

Andrew Griffith Portrait Andrew Griffith
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On behalf of my right hon. Friend the Member for South West Wiltshire (Dr Murrison), I thank the Secretary of State for intervening. It is important that we legislate with full understanding of what the law says, but the point still stands on the overweighting of references to EU standards versus comparable standards from the United States and Commonwealth friends of this great nation.

John Hayes Portrait Sir John Hayes
- Hansard - - - Excerpts

On that note, the point is the one I made to the Secretary of State: where, as the impact assessment suggests, regulations are moving at pace—the Secretary of State repeated that—we will default to a European set of standards. That is the problem, and that is certainly implied in the Bill’s impact assessment. I sought the Secretary of State’s assurance that that will not happen. If it does not happen, will there be no rules or regulations? How will that work in practice?

Andrew Griffith Portrait Andrew Griffith
- Hansard - -

We are having the proper debate through these interventions that perhaps we should have had when the Secretary of State was introducing the Bill. That illustrates the point about putting a vast amount of ambiguity—even if it is well intentioned—into the law and how things will operate, and for a reason of which we know not. If there are instances of, for example, e-scooters catching fire in people’s halls, this House has the ability to legislate, and legislate fast where necessary, against those particular harms at that particular moment in time. My right hon. Friend, with his many years of experience in this House, understands that point, and I think that was what he was saying.

Sammy Wilson Portrait Sammy Wilson
- Hansard - - - Excerpts

Although Opposition Members will perhaps deliberately choose to believe that the words and assurances given are ambiguous, does the hon. Member accept that even Government Members in the House of Lords believe there is an ambiguity that needs to be cleared up? One comment was:

“The question of dynamic alignment with the EU remains unanswered yet ever more topical.”—[Official Report, House of Lords, 12 March 2025; Vol. 844, c. 712.]

Andrew Griffith Portrait Andrew Griffith
- Hansard - -

The hon. Member makes exactly the right point. This is a blank cheque Bill and a Trojan horse Bill. It is simply not clear under this Secretary of State, or any Secretary of State in the future once these powers have been ceded by this place, how they will be implemented. There is a real asymmetry in the constant litany of references to the European Union—a valued trading partners of ours, but only one valued trading partner of ours, as I hope the Secretary of State is about to reveal over the coming days. Tomorrow we understand that tariffs will be imposed by the United States on British exporters. If that is the case, that would be the worst failure of trade policy for a generation. It is businesses, jobs and our economy that will all pay the price. The Chancellor’s emergency Budget will not have lasted a single week because she made no provision for the imposition of tariffs—if that is indeed what is to come.

It is frankly outrageous that the Government have failed to make a statement about where we are, despite the Prime Minister’s official spokesman briefing the Lobby, and the Business and Trade Secretary himself finding time this morning to conduct a round of media interviews. If the Secretary of State would like to comment on the progress of US talks, I will happily give way.

Jonathan Reynolds Portrait Jonathan Reynolds
- Hansard - - - Excerpts

This is a little off-topic for a Second Reading, but the hon. Gentleman could have just listened to the “Today” programme this morning. He would have heard me articulate those concerns. We are engaged with our US counterparts, more so than any other country, in those negotiations. He will know that I will not share the content or detail of those talks. The policy originates with the President of the United States and we are responding to and engaging with it. The hon. Gentleman will understand that it comes from the mandate and the agenda of the US Administration.

Caroline Nokes Portrait Madam Deputy Speaker (Caroline Nokes)
- Hansard - - - Excerpts

Order. I remind the Secretary of State and the shadow Secretary of State that we are debating the Second Reading of the Product Regulation and Metrology Bill, and not necessarily tariffs.

Andrew Griffith Portrait Andrew Griffith
- Hansard - -

Of course, Madam Deputy Speaker. I am nearing a conclusion in any case. However, I do think that the issue of product safety—the rules and regulations that govern our economy, as the Secretary of State himself said—is intrinsically linked with trade, mutual recognition and growing the economy by removing trade frictions and barriers rather than erecting them and subjecting businesses to the tyranny of simply not understanding the corpus of rules and regulations.

Graham Stuart Portrait Graham Stuart
- Hansard - - - Excerpts

My hon. Friend is making a powerful speech. Does he, like me, hope that the Liberal Democrats, despite their hobby-horse love of the EU, do not allow the EU flavouring of the Bill to blind them to the frankly illiberal Executive-enhancing, legislature-diminishing aspect of the Bill? If they genuinely aspire to being His Majesty’s Opposition, they will join us this evening in voting against Second Reading.

Andrew Griffith Portrait Andrew Griffith
- Hansard - -

My right hon. Friend makes an important point. I hope, as the Secretary of State slightly alluded to in his remarks about the ability of a country to make its own rules and regulations, that we will soon be back in the House with a Government statement at which we can celebrate the mother of all Brexit benefits: securing the ability to conduct our own trade. I look forward to hearing from the Liberal Democrats exactly how much they welcome that ability on behalf of their constituents.

Christine Jardine Portrait Christine Jardine
- Hansard - - - Excerpts

Although I cannot speak immediately for all Liberal Democrats, it puzzles us that the official Opposition do not seem to recognise that if they had legislated properly when we left the European Union, this legislation would not be necessary. Do they not accept any responsibility for where we are today?

Andrew Griffith Portrait Andrew Griffith
- Hansard - -

We will not accept any lessons from the Liberal Democrats about what it takes to Brexit successfully and go back to being an independent nation, but if that is what the hon. Lady will speak about, I look forward to hearing it.

To conclude, the Bill is flawed in so many ways. With the best will in the world, Ministers should not be proposing it, particularly given their failure so far to protect us from US tariffs. It is a bad Bill from a Government who are already failing. It is a travesty for anyone who cares about respect for parliamentary democracy and the role of this House versus Ministers. It is, as I said, a Trojan horse Bill that will sabotage our Brexit freedoms and take us back to being an EU rule taker, which the British people had long put behind us. I urge the House to back our reasoned amendment and end this terrible Bill.

Oral Answers to Questions

Andrew Griffith Excerpts
Thursday 13th March 2025

(1 month ago)

Commons Chamber
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Lindsay Hoyle Portrait Mr Speaker
- Hansard - - - Excerpts

I call the shadow Secretary of State.

Andrew Griffith Portrait Andrew Griffith (Arundel and South Downs) (Con)
- View Speech - Hansard - -

How have we got to this point? After 35 weeks as Trade Secretary, 18 weeks since the US election, and an entire month since steel and aluminium tariffs were first announced, the Secretary of State is only now going to sit down with the Secretary of Commerce of our closest ally. While he has been correcting his CV, steelworkers and businesses are hurting today. This is a colossal failure of trade policy on his watch. Why has it taken so long, and when can we expect an agreement?

Jonathan Reynolds Portrait Jonathan Reynolds
- View Speech - Hansard - - - Excerpts

The hon. Gentleman may have not seen the news recently, but the UK, led by our Prime Minister, has had the best engagement of any country with the new US Administration. Is it not good to see again a British Prime Minister who is respected on the world stage and delivering for Britain? We have had tremendous engagement with the new US Administration, and I am looking forward to meeting them in person next week.

Andrew Griffith Portrait Andrew Griffith
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Once again, no answers come there forth. Over 1 million jobs in this country depend on trade with the United States, including thousands of jobs in our steel industry. The Secretary of State does not know when he is going to get a deal. Will he publish his red lines for that deal, his objectives and what he hopes to achieve from meetings next week?

Jonathan Reynolds Portrait Jonathan Reynolds
- View Speech - Hansard - - - Excerpts

On steel and aluminium tariffs, the US Administration’s position is that there are no exemptions for anybody—that is across the board. I think they recognise the very strong case that we have, but that is their position.

No, I will not publish my negotiating red lines before a negotiation. Frankly, that is the worst advice I have ever heard in the House of Commons. The Conservative party fell out with the EU, would not deal with China and could not do a deal with India. It fell out with the United Arab Emirates and could not do a deal with the Gulf. It got nothing out of the US. It did deals with Australia and New Zealand, then disowned them. We will take no lessons from the Conservatives.

Andrew Griffith Portrait Andrew Griffith (Arundel and South Downs) (Con)
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Before I summarise the Opposition’s view on the Bill, I pay tribute to those on the Conservative Benches who contributed during its passage. My hon. Friend the Member for Mid Buckinghamshire (Greg Smith) has held the Government to account with forensic skill on Report and in Committee. He was joined in the Bill Committee by my hon. Friends the Members for West Suffolk (Nick Timothy), for Bridgwater (Sir Ashley Fox) and for Mid Leicestershire (Mr Bedford), and my hon. Friends the Members for Bognor Regis and Littlehampton (Alison Griffiths) and for Dumfries and Galloway (John Cooper) performed great service as members of the Select Committee. I also acknowledge the work of officials in the Department and in Parliament. Their job cannot have been easy, given the indecent haste with which the Bill has been produced.

We disagree on much, but it would be churlish of me not to recognise that today represents a personal victory for the Deputy Prime Minister, the right hon. Member for Ashton-under-Lyne (Angela Rayner). While the Secretary of State for Business and Trade, the right hon. Member for Stalybridge and Hyde (Jonathan Reynolds) and the Chancellor of the Exchequer, the right hon. Member for Leeds West and Pudsey (Rachel Reeves) lie low, there is no doubt who has been in the driving seat. [Interruption.] Well, he is now. He’s here now. It is very—[Interruption.]

Andrew Griffith Portrait Andrew Griffith
- Hansard - -

We welcome him to his place.

At least the Deputy Prime Minister is honest in her unwavering support for the trade union agenda. She is proud to walk in the footsteps of Neil Kinnock, Michael Foot and the right hon. Member for Islington North (Jeremy Corbyn), a conviction politician in the proper sense of the word, not a politician with convictions like the Labour Member for Runcorn and Helsby (Mike Amesbury). It makes a welcome change—[Interruption.] Well, he’s going. It makes a welcome change from a Prime Minister who pretends the Bill is about growth.

It is not easy for the right hon. Lady. It is always awkward being at odds with your boss: he says grow, you say slow; he wants fewer regulators, you create new ones. We all remember how in 2021 she herself was a victim of fire and rehire by a bad boss. Just wait until he sees the higher unemployment, higher prices and lower growth that the Bill will bring. [Interruption.]

Andrew Griffith Portrait Andrew Griffith
- Hansard - -

I’ll do that again: higher unemployment, higher prices and lower growth. No wonder the right hon. Lady is in favour of making it harder to be sacked.

This is a sad day for business and a bad day for Parliament. Business will have watched the last two days with dismay—[Interruption.] They will watch this with dismay as well, Madam Deputy Speaker. As they struggle with the Chancellor’s job tax and with the business rates hike about to hit next month, they see hundreds of pages of red tape heading their way. They will have seen the Minister yesterday, asked to name a single small business who supports the Bill, reel off the names of three large ones, two of which turned out not to support it anyway and the third was a quote from the chief inclusion officer at the Co-op. My right hon. Friend the Member for Wetherby and Easingwold (Sir Alec Shelbrooke) put it well yesterday when he said the Government plan to increase the number of small businesses by starting with large ones and making them smaller.

No one who cares about Parliament legislating well can be proud of how we have got here: a rushed Bill which was introduced at half the length to which it has now grown; an impact assessment which the Regulatory Policy Committee described as not fit for purpose; over 260 pages of amendments, few of which were scrutinized in Committee; and speeches in favour that have leaned heavily in support of the trade unions who stand to gain so much financially from the Bill.

But my final word goes to the real—[Interruption.] I can do some more. The final word goes to the real victims—[Interruption.] They do not want to hear it, Madam Deputy Speaker. The final word goes to the real victims of this Bill. Faced with this legislation, employers will take fewer risks on new employees. As a result, this Bill will hit young people disproportionately hard. They do not have the track record to rely on someone giving them the chance, a first step into the world of work.

Unlike so many Labour Members, whose first job was at a comfortable desk in TUC Congress House, my first job was at a supermarket. That company was able to take a risk on a young Andrew Griffith with no career experience; it was able to take that chance because it knew that I could not start work in the morning and then file an employment tribunal claim in the afternoon.

I know that for many Labour Cabinet members career experience on their CV is a sensitive topic, but that does not excuse what is a vindictive attack on the next generation. The truth is that Labour do not understand business. They do not understand what it takes to grow; they never have and they never will. Every Labour Government have left office with unemployment higher than when they started, and that is why we cannot support this terrible Bill.

Question put, That the Bill be now read the Third time.

Department for Business and Trade

Andrew Griffith Excerpts
Wednesday 5th March 2025

(1 month, 1 week ago)

Commons Chamber
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Liam Byrne Portrait Liam Byrne
- Hansard - - - Excerpts

Well, there was an awful lot more money than there is now. We certainly did not have a debt interest bill of £100 billion a year, which is what the bill has risen to, and why so many difficult choices are having to be taken. At that time, we were beginning genuinely to consider how to create single, pooled funds that came together from different Government Departments. A challenge for us in the House is that we have to reflect on the fact that we reinforce silos in Government, and do not reinforce joined-up Government. This estimates debate is a good example: we are considering the accounts of the Department for Business and Trade, but in an ideal world we would also have here Ministers from the Department for Science, Innovation and Technology, the Treasury, the Department for Environment, Food and Rural Affairs and a couple of other Departments, and we would ask those Ministers how they were working together to deliver a joined-up offer to our business community, because businesses have not got time to muck around and deal with all the red tape; they are trying to build a business.

Closure of High Street Services: Rural Areas

Andrew Griffith Excerpts
Wednesday 5th February 2025

(2 months, 1 week ago)

Westminster Hall
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Westminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.

Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.

This information is provided by Parallel Parliament and does not comprise part of the offical record

Andrew Griffith Portrait Andrew Griffith (Arundel and South Downs) (Con)
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It is a pleasure to serve under your chairmanship, Ms Furniss. I congratulate the hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone) on securing this important debate. We have had a delightful virtual tour of every one of the nations around our United Kingdom this morning.

I speak not only as the shadow Secretary of State for Business and Trade but as the MP for rural Arundel and South Downs in West Sussex. The vast majority of my constituents live in rural areas. They rely on small high street businesses and services, including pharmacies, post offices and local banks, for all aspects of their lives—to access cash, to put food on their table, to pour their pints and to provide the products they need to care for themselves and their families. Local high streets are the heart of our communities, and we are talking today about a fragile ecosystem—an ecosystem that is facing extinction.

The choices that the Government made in the autumn statement will be terminal for thousands of businesses on our high streets across the country. It is difficult to overstate the headwinds that the Government have placed upon those businesses. The jobs tax—the increase in national insurance contributions and reduction in the threshold—means that employers will be forced to pay more and will leave shopkeepers, hairdressers, postmasters and publicans wondering how they will keep staff on their payroll this year. It is a highly regressive measure that will hit the low paid and part time the most. The chief executive officer of UKHospitality, Kate Nicholls, has said that the increase in NICs will cost the hospitality industry more than £1 billion, and predicts business closures and job losses within the year. Not a single pub, café or restaurant on our rural high streets will go untouched.

The Government’s decision to restrict flexible employment contracts will predictably leave high street businesses, which rely on flexible staff, in an impossible situation, without any hope of staffing for seasonal peaks and troughs. The British Institute of Innkeeping has warned that the Budget will cause 75% of pubs to cut their hours, 40% to reduce further their opening times, and one in three to make staff redundant. That was always a predictable outcome.

The cancellation of the community ownership fund has removed a potential safety net for communities. For business owners who have built a legacy, taking risks and employing local people over the course of their career, there is a real question mark over what will happen to their enterprise following the Government’s vindictive family business death tax. The Farm Retail Association said yesterday that as many as one in two farm shops could be forced to close their doors in the coming years. Farm shops are being hit by one aspect of the Budget, and local farmers who supply produce by another.

A number of Members rightly spoke about the importance of local post offices and banking hubs. They are absolutely right that they are a crucial lifeline for isolated communities, and I know from personal experience that they have been forced to overcome challenges in recent years. Banking hubs are important not just for access to cash, but to support the growing elderly proportion of our population. They are also vital in enabling high street traders to deposit their takings so that they can continue to take cash. As the responsible Minister at the time, I opened some of the earliest banking hubs. The Minister has continued to pursue that agenda, and I hope he will confirm today that the target of 500 banking hubs—one for almost every constituency—by 2030 remains.

The official Opposition will not apologise for standing up for small businesses. I believe that the Minister is a good man, but he should admit the truth that he will not speak: the Treasury does not have businesses’ back. Unless rapidly reversed, the measures in the Budget will devastate access to rural services and ruin our rural high streets. People will lose their jobs, and shutters will close forever.

Oral Answers to Questions

Andrew Griffith Excerpts
Thursday 30th January 2025

(2 months, 2 weeks ago)

Commons Chamber
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Nusrat Ghani Portrait Madam Deputy Speaker (Ms Nusrat Ghani)
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I call the shadow Secretary of State.

Andrew Griffith Portrait Andrew Griffith (Arundel and South Downs) (Con)
- View Speech - Hansard - -

In the week of Labour’s latest reset, how does the Minister reconcile imposing an additional £5 billion of costs on business—on the Government’s own figures—with growing the economy? What was it about the breakfast with the Prime Minister that saw bosses laying off more workers 24 hours later?

--- Later in debate ---
Sarah Jones Portrait Sarah Jones
- View Speech - Hansard - - - Excerpts

The chemical industry has been suffering for many years because of the previous Government’s economic policies, crashing the economy under Liz Truss and failing to deal with energy prices over multiple years. I have met the chemical industry. It is an important part of our economy, and we need to do what we can to protect it. I am having conversations, and we are building our energy policies. We are building our industrial strategy.

Sarah Jones Portrait Sarah Jones
- Hansard - - - Excerpts

Word salad? Gosh. That abuse from the Opposition Front Bench has cut me to the core. The industrial strategy has set out eight sectors that will turbocharge the economy. Across all those sectors lie our foundational sectors, of which the chemical industry is one. We will support that industry in a way that his Government failed to do.

--- Later in debate ---
Nusrat Ghani Portrait Madam Deputy Speaker (Ms Nusrat Ghani)
- Hansard - - - Excerpts

I call the shadow Secretary of State.

Andrew Griffith Portrait Andrew Griffith (Arundel and South Downs) (Con)
- View Speech - Hansard - -

Next week, members of the Public and Commercial Services Union in the Department for Business and Trade are once again out on strike. Does the Minister consider the union’s demands to be reasonable? Will Ministers cross picket lines to return to work?

Sarah Jones Portrait Sarah Jones
- View Speech - Hansard - - - Excerpts

The shadow Secretary of State shows a new-found respect for the trade unions, after the previous Government’s failure to engage with them caused multiple strikes and huge amounts of wasted money. The contract is not directly with the Department, but obviously we work with PCS and all our trade unions. I regularly meet our trade unions to make sure that we have good workers’ rights.

Competition and Markets Authority Chairman

Andrew Griffith Excerpts
Wednesday 22nd January 2025

(2 months, 3 weeks ago)

Commons Chamber
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Urgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.

Each Urgent Question requires a Government Minister to give a response on the debate topic.

This information is provided by Parallel Parliament and does not comprise part of the offical record

Andrew Griffith Portrait Andrew Griffith (Arundel and South Downs) (Con)
- View Speech - Hansard - -

(Urgent Question): To ask the Secretary of State for Business and Trade if he will make a statement on the position of the chairman of the Competition and Markets Authority.

Justin Madders Portrait The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)
- View Speech - Hansard - - - Excerpts

Following the resignation of the chair of the Competition and Markets Authority, Marcus Bokkerink, the Secretary of State has appointed Doug Gurr as the interim chair for a period of up to 18 months while our new permanent chair is appointed. The Secretary of State has expressed his gratitude for Marcus’s leadership of the board of the CMA since his appointment in September 2022, and for the work of the CMA in that time, particularly in response to cost of living pressures.

As the Prime Minister set out in his speech at the international investment summit, this Government will ensure that every regulator in the UK focuses on growth. Given Doug Gurr’s background and experience as an entrepreneur and business leader, and his clear under-standing of the importance of new and developing technologies such as artificial intelligence, he will bring the necessary strategic leadership to the CMA to enable it to promote growth for the benefit of businesses and consumers. As set out in the industrial strategy Green Paper, the Government will shortly be consulting on a new growth-focused strategic steer for the CMA. While respecting the independence of the CMA and the decision making of its panel members, the steer will be clear about the Government’s expectations of the CMA in supporting growth across the economy.

Lindsay Hoyle Portrait Mr Speaker
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I call the shadow Secretary of State.

Andrew Griffith Portrait Andrew Griffith
- View Speech - Hansard - -

Thank you for granting this important urgent question, Mr Speaker.

What a desperate state we are in when the Business Secretary has to phone up the regulators to beg them for ideas to fix the lack of growth that his own Government’s policies have created. I hope that when the regulators attended the roundtable last week, including the chairman of the CMA, they had the courage to put at the top of their list scrapping the Business Secretary’s 150-page, job-destroying and trade union-inspired Employment Rights Bill; or to point out the jobs tax in the Chancellor’s Budget, Labour’s socialist attacks on inheritance and non-doms, and the family business death tax that is causing one wealth creator to leave this country every 45 minutes; or even to point out that one of the best opportunities that this country has for growth would be to get on a plane to our closest trading partner, the United States, and secure a trade deal, rather than lob juvenile insults at President Trump or fail to invite Elon Musk to the Government’s UK investment summit.

It is certainly the case that, while regulators have a role, they generally depress growth and drive risk aversion, bureaucracy and slow decision making. Asking regulators to boost growth is a bit like asking the village speed watch to organise the next British grand prix. I am a fan of speed watch.

The Conservative party is under new management, and we are unafraid to back wealth creators and risk takers. We are unashamed to say that we need fewer civil servants and arm’s length regulators so that our businesses carry less dead weight in the global race to be competitive, but dismissing the non-executive, part-time chair of the CMA seems a curious place to start. He is not responsible for day-to-day decision making at the CMA; that is the job of the chief executive. Did they aim and miss? Can the Minister confirm whether there are plans to change the Government’s view on the CMA’s remit, to play the ball and not the man? What evaluation has there been of all regulators as part of this process, and when will the Government publish it?

Justin Madders Portrait Justin Madders
- View Speech - Hansard - - - Excerpts

I think there were a couple of questions in there about the role of the CMA chair. Of course, he did not get sacked; he resigned. A new strategic steer for the CMA will be coming out in due course. The hon. Gentleman’s tirade of criticisms of this Government was a bit rich coming from a man who was in the Treasury when the last Government crashed the economy. I would point out that PwC announced only this week that we were the second most attractive country in the world to invest in, and that the International Monetary Fund last week upgraded our growth predictions for this year. We are going to be the highest-growing major economy in Europe this year, and that shows our determination to get the growth going, which was something that his Government failed completely on.

Harland & Wolff

Andrew Griffith Excerpts
Thursday 19th December 2024

(3 months, 4 weeks ago)

Commons Chamber
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Andrew Griffith Portrait Andrew Griffith (Arundel and South Downs) (Con)
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I thank the Secretary of State for an advance copy of his statement. The famous yellow gantry of Harland & Wolff stands tall, not only on the skyline of Belfast but in the history of our nation. It is difficult to overstate what Harland & Wolff means to people in the communities of Belfast, Appledore, Arnish and Methil. Extended families across the country will welcome today’s confirmation that the shipbuilding contract that we awarded in government will now proceed. There remain, however, many unanswered questions, which I would be grateful if the Secretary of State could answer. If he cannot answer them at the Dispatch Box today, I would be grateful if he or the Defence Secretary would write in the coming days.

First, at a time of enormous geopolitical uncertainty, can the Secretary of State confirm that there will be no change to the in-service date of the three fleet solid support ships, with the first ship entering service as expected in the fourth quarter of 2028? Secondly, what funding or commitment, if any, has been provided by any part of the Government to Navantia to secure this finalised deal? If so, which budget will that be appropriated from? Has he received state aid clearance for the transaction and, if not, could he clarify the process by which that will now be obtained?

The Secretary of State said in his statement that the Department has agreed the

“absolute minimum of changes to the contract,”

but the statement provides absolutely nothing whatsoever as to what that actually conceals. Can he guarantee, as Navantia promised as part of its original bid for the contract, that no less than 60% of the whole supply chain activity will take place in the UK? Will he confirm that there are no additional work packages beyond those originally envisaged moving from Belfast or anywhere in the UK to Puerto Real in Cádiz? Above all, will he assure the workers and their families who are watching that the final assembly and systems integration, which is where much of the high-value work sits for all three of those vital ships, will take place in Belfast, rather than in Navantia’s parent shipyards in Spain?

The Secretary of State will appreciate that it is sometimes hard, though one tries, to take him at his word after the number of impacts on business over the past few months. The wider context—though welcome in respect of this particular contract and these defence jobs—is the large-scale uncertainty that our defence companies, contractors, workers and employees face about the timetable for the Government to reach 2.5% on defence spending. They do not have the certainty that Harland & Wolff workers now do this Christmas. We do not even have a timeline for a timeline as to when that 2.5% will be hit, and we have seen a degree of equivocation on exactly when the strategic defence review will be published. Again, I would be grateful if the Secretary of State clarified that or if a colleague wrote to me.

It is, at the end of the day, action not words. We welcome this deal for Harland & Wolff and the certainty that it will provide to workers and their families, and I thank the Department officials for their work on that, but there are still many questions to be answered.

Nusrat Ghani Portrait Madam Deputy Speaker (Ms Nusrat Ghani)
- View Speech - Hansard - - - Excerpts

I call the Secretary of State. Having served in his Department, I too will be paying close attention to the answer.