Asked by: Blake Stephenson (Conservative - Mid Bedfordshire)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, pursuant to the Answer of 22 May 2025 to Question 52390 on Motor Vehicles: Carbon Emissions, how many automotive manufacturing businesses are operating in the sector.
Answered by Sarah Jones - Minister of State (Department for Energy Security and Net Zero)
In 2024, there were 3,570 businesses operating across UK automotive, of which the vast majority are small and medium sized businesses. Our Industrial Strategy aims to significantly increase investment and jobs in eight high-growth sectors - including automotive - by capturing a greater share of internationally mobile capital, encouraging domestic businesses to scale up, and creating resilient supply chains.
Asked by: Blake Stephenson (Conservative - Mid Bedfordshire)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, pursuant to Answer of 22 May 2025 to Question 52390 on Motor Vehicles: Carbon Emissions, how many people are employed in the automotive industry.
Answered by Sarah Jones - Minister of State (Department for Energy Security and Net Zero)
132,000 people were employed in automotive manufacturing in the UK in 2024, 5.1% of total UK manufacturing employment, around half in manufacturing finished vehicles and half in manufacturing car bodies, parts and accessories. In addition, a further 263,000 jobs are estimated to be supported by the industry in the wider economy through its purchases of goods and services such as sales and maintenance, machinery and materials and financial services.
Asked by: Blake Stephenson (Conservative - Mid Bedfordshire)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, what assessment he has made of the potential impact of the cost of energy on automotive manufacturers.
Answered by Sarah Jones - Minister of State (Department for Energy Security and Net Zero)
We speak regularly to all major UK automotive stakeholders to understand the health of the sector and factors that impact competitiveness. Our modern Industrial Strategy will focus on tackling barriers to growth in areas important for automotive companies to grow and invest in the UK. The Strategy will build on existing support for the automotive sector, including the Budget commitment of over £2 billion of funding to 2030 for zero emission vehicle manufacturing.
Asked by: Blake Stephenson (Conservative - Mid Bedfordshire)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, if he will make a comparative assessment of US tariffs on the UK (a) in July 2024 and (b) under the new UK-US trade deal.
Answered by Douglas Alexander - Minister of State (Cabinet Office)
On 8 May, we concluded a landmark economic deal with the US. We’re the first country to secure a deal with the US which gives our companies a preferential tariff rate. Lowering or removing tariffs across a range of sectors will help to ease the burden on businesses by reducing costs and making them more competitive, which in the long run will help to secure jobs and avoid businesses closing.
We are continuing talks on a wider UK-US Economic Deal which will look at increasing digital trade, enhancing access for our world-leading services industries and improving supply chains.
Asked by: Blake Stephenson (Conservative - Mid Bedfordshire)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, what steps he is taking to help reduce employment costs for the automotive industry.
Answered by Sarah Jones - Minister of State (Department for Energy Security and Net Zero)
Jobs will be at the heart of our modern Industrial Strategy, which will focus on tackling barriers to growth, creating the right conditions for increased investment, high-quality jobs and ensuring tangible impact in communities right across the UK. The strategy will build on existing support for the sector, including the Budget commitment of over £2 billion of funding to 2030 for zero emission vehicle manufacturing.
We have also made significant changes to the ZEV Mandate to help drive investment and support the transition. Additionally, we speak regularly to all major UK automotive stakeholders to understand the health of the sector and factors that impact competitiveness.
Asked by: Blake Stephenson (Conservative - Mid Bedfordshire)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, what steps he is taking to support the beer and pub sector.
Answered by Gareth Thomas - Parliamentary Under Secretary of State (Department for Business and Trade)
Pubs and the beer sector are central to our communities and vital to economic growth. I regularly meet with sector representatives. To understand their challenges. We are also supporting initiatives like Pub is The Hub to encourage local investment. Additionally, we have launched a licensing taskforce to cut red tape and remove barriers to business growth.
We also plan to introduce permanently lower business rates for retail, hospitality, and leisure properties with a rateable value under £500,000 and are reducing alcohol duty on qualifying draught products, saving the sector over £85 million annually.
Asked by: Blake Stephenson (Conservative - Mid Bedfordshire)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, if he will make it his policy to include the beer and pub sector in his Department's forthcoming industrial strategy.
Answered by Sarah Jones - Minister of State (Department for Energy Security and Net Zero)
The Industrial Strategy Green Paper identified eight growth-driving sectors: Advanced Manufacturing, Clean Energy Industries, Creative Industries, Defence, Digital and Technologies, Financial Services, Life Sciences and Professional and Business Services.
Sector Plans for the eight growth-driving sectors will be published alongside the Industrial Strategy in Spring 2025, aligned with the multi-year Spending Review. The Sector Plans will set out the specific sub-sectors of focus, identify key barriers to growth, and describe how government and industry intend to achieve long-term growth for the sector.
All sectors will benefit from wider policy reform through the Industrial Strategy’s cross-cutting policies alongside the broader Growth Mission. This will create the pro-business environment for all businesses to invest and employ, and consumers to spend with confidence.
Asked by: Blake Stephenson (Conservative - Mid Bedfordshire)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, if she will make an assessment of the potential impact of the Zero Emission Vehicle mandate on employment in the automotive industry in (a) Bedfordshire and (b) the UK.
Answered by Sarah Jones - Minister of State (Department for Energy Security and Net Zero)
In 2024, 132,000 people were employed in automotive manufacturing in the UK, and 3,570 businesses were operating across the sector. While the government does not hold data on how the Zero Emissions Vehicle Mandate has affected automotive employment in Bedfordshire or the UK more widely, we speak regularly to all the major UK automotive stakeholders to understand the health of the sector and factors impacting competitiveness. Government is committed to ensuring the transition to zero emissions works for industry. That is why we introduced significant changes to the Mandate, allowing for greater flexibility in meeting ZEV targets and extending the sale of hybrid vehicles.
Asked by: Blake Stephenson (Conservative - Mid Bedfordshire)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, if he will make an assessment of the potential impact of the UK leaving the EU on the level of tariffs applied to the UK by the US.
Answered by Douglas Alexander - Minister of State (Cabinet Office)
The UK has a strong and balanced trading relationship with the US worth £315 billion. Investment supports around 2.5 million jobs across both countries. Trade is second only to the EU where our trading relationship is worth £813 billion. The level of tariff applied to any country, including the UK, by the US is determined by the US government.
On 8 May, the UK government announced a landmark economic deal with the US, making the UK the first country to reach an agreement with President Trump. This deal protects jobs in the automotive, steel, aluminium, pharmaceutical and aerospace sectors - sectors that employ over 320,000 people across the UK.
Asked by: Blake Stephenson (Conservative - Mid Bedfordshire)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, what assessment he has made of the potential impact of the target to reach net zero on the number of imports of electric vehicles from China in each of the next ten years.
Answered by Sarah Jones - Minister of State (Department for Energy Security and Net Zero)
The Secretary of State and I regularly meet stakeholders from the Auto sector to discuss net zero related issues, including imports of electric vehicles from China. China has rapidly become a major automotive manufacturer and brings competitive challenges for the sector. Government is closely monitoring the monthly data and analysing how this impacts the UK automotive sector, especially given our ambitious policies on Zero Emission Vehicles.
To ease the transition to Electric Vehicles, we announced significant changes to the Zero Emission Vehicle Mandate on 7 April, allowing for greater flexibility in meeting ZEV targets and extending the sale of hybrid vehicles.