Department for Business and Trade

Caroline Nokes Excerpts

Wednesday 5th March 2025 Commons Chamber

[Liam Byrne]

My hon. Friend is right, but we have to look to the future. We have to understand how Government will connect together and ensure a transformation in regional transport and connectivity. So many parts of our country are bedevilled by a lack of internet connectivity, so they cannot access the kind of applications that might give them access to artificial intelligence, for example, or to international markets. They cannot get access to the internet full stop. We have to think boldly about how we join Government together in a revolutionary way.

Finally, I wanted to mention the Post Office. When we look at these accounts in the round, we see a 44.8% increase in the amount allocated, taking the figure up to nearly £6 billion a year. That is partly driven by £444 million for the British Business Bank, but it is overwhelmingly driven by about £1.3 billion extra for the Post Office. The good step has been taken of increasing funding for the Post Office compensation scheme, but that money is still not going out the door fast enough. I accept that that has improved, but the Committee will return with some tougher questions for Ministers in the light of their response to our recent report.

My final point, which I urge on both the Minister and his colleagues in the Treasury, is that we cannot transform the Post Office into the organisation it could be by drip-drip-dripping the funding for modernisation through to it. The Post Office needs a proper five-year to 10-year funding plan so that it can genuinely become the organisation that it could be. When these accounts were published by the Department, they were qualified and late. I know that civil servants have to work hard to iron out a number of problems, and we have asked the permanent secretary for monthly updates on how he is doing in bringing the kind of clarity that this House should expect. I thank the civil servants and the Department for the extraordinary work that they do; they are absolutely mission-critical to the hopes of so many of us in this country and to our becoming the fastest-growing economy in the G7.

[Madam Deputy Speaker (Caroline Nokes)]

I will have to put Back-Bench Members on an immediate five-minute time limit, which may well go down in due course.

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[Gregor Poynton]

I am afraid the hon. Member often falls into the trap of thinking that being just a little bit better than the Tories is good enough for Scotland. I see Scotland as much more than that.

While this Government are providing businesses with the certainty that they need to plan for the future, the SNP has been content to manage decline without a plan to stimulate growth or attract investment. It failed on delivering green jobs, despite grand promises on renewable energy that never materialised, and failed to support manufacturing, leaving companies without backing. Contrast that with the UK Labour Government’s crucial action to protect jobs and investment at Grangemouth, a site of huge economic importance to Scotland. The Prime Minister’s announcement of £200 million from the national wealth fund represents a clear and unequivocal commitment to ensuring that Grangemouth remains a hub of economic and industrial activity. This investment will not only safeguard existing jobs but unlock new opportunities in green energy and advanced manufacturing.

That is Government working in the interests of business, workers and our long-term prosperity. It is in that spirit that I hope and believe that Grangemouth will become a central part in DBT’s industrial strategy and its thinking and work for years to come. The SNP Scottish Government and previous Tory Governments had years to act but failed to do so. They have squandered opportunities and failed to plan for Grangemouth or for Scotland’s economic future. This Labour Government have stepped up and secured a future for Grangemouth workers, providing them with a training guarantee and working with industry partners to build long-term resilience for the site. The contrast could not be sharper.

I look forward to working with my dedicated and talented collegiate Committee colleagues from all parties as we continue to scrutinise the work of the Department. This Government are committed to driving growth and building an economy that works for everyone. The opportunity to get ahead is what everyone wants for their family. That is why I am in politics, driven to ensure that no one in this country is held back by their circumstances. A modern industrial strategy is key to making that happen.

[Madam Deputy Speaker (Caroline Nokes)]

I will now reduce the time limit to four minutes.

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[Several hon. Members rose—]

[Madam Deputy Speaker (Caroline Nokes)]

Order. There is now a three-minute time limit.

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[Cameron Thomas (Tewkesbury) (LD)]

I hope the hon. Member for Portsmouth North (Amanda Martin) will pass on my thanks to her son for his service. I do wonder how Lord Nelson would feel about the increasing necessity for us to align with our English channel neighbours.

Labour’s national insurance hike will hit small businesses, social care providers and local GP services across the country. This rise will have dire consequences for the many historic villages and towns of my rural constituency. In recent years, small businesses have increasingly been forced out of our historic high streets and replaced by soulless international chain stores and restaurants with the resources to cope with inflation. Over time, our high streets are losing their unique character.

Among the small businesses that will suffer are pubs and breweries, which generate approximately £15 billion of tax revenues each year. According to UKHospitality, the economic value of the hospitality industry in Tewkesbury is £67 million a year. Last month, I visited the Plough in Prestbury, where I spoke with the landlord, Emma, who told me that this one establishment is worth £100,000 a year to HMRC. Having diversified and restructured to the nth degree, she is now accumulating debt to stay solvent. The pub is also her home. How do the Government expect to accrue revenue if they tax such businesses into oblivion?

Small local businesses are vital to the unique identities of rural high streets across the country. They are often the backbone of local economies, and it is important that we do not inadvertently force them to the wall. This single policy will have such an outsized impact—I hope the Government will review this decision with economic growth in mind.

[Madam Deputy Speaker (Caroline Nokes)]

To wind up for the Liberal Democrats, I call Clive Jones.

[Clive Jones (Wokingham) (LD)]

I offer my thanks to the Chair of the Business and Trade Committee, the right hon. Member for Birmingham Hodge Hill and Solihull North (Liam Byrne), for delivering a powerful opening speech and for securing this important debate. I absolutely agree that public procurement should be more focused on buying British, and that access to finance needs to be improved sooner rather than later, so that our defence industries can upskill and respond to what is going to be a growing need. The Department for Business and Trade is synonymous with what Britain truly needs. Britain needs growth—most of us in this Chamber will agree with that. Businesses need confidence in the UK as a place to invest.

We have a Government who are staring stagnation in the face and failing to learn the lessons from the Conservative party’s economic vandalism, which stretched household finances to the brink. Businesses are now left bracing for further pain once the Chancellor’s job tax comes into force. Like many others, I am particularly concerned about the impact it will have on the hospitality sector and the great British pub. Last Saturday, I visited the Station Tap in my constituency, which has been a pub for 150 years. While I pulled one of the worst pints of my life, the owners shared their concerns about the Budget. The rise in national insurance contributions for just this one pub will add £12,000 to its business costs every year. It is no wonder that in a survey by the British Chambers of Commerce, 82% of firms said that the rise in national insurance contributions will impact their business, forcing them to change their plans, make redundancies and stop investing in people and in growth.

Changes to NICs were not the only issue with the Budget that the Station Tap’s owners raised with me. It is overwhelmingly obvious that business rates are broken. They asked me to give a clear message to the Minister that business rates are outdated and need meaningful reform—most importantly, sooner rather than later. We would not be in a position where I seemingly have a new business raising this matter with me every week if the Government were getting on with the work quickly. The owners are especially concerned about the planned reduction in relief for hospitality, which could cost independent publicans £3,000 to £5,000 a year.

Other businesses in Wokingham warned that the loss of the relief could see their businesses pushed to the brink. Wokingham has some of the best pubs in the country—The Queen’s Head, the Queen’s Oak, the Duke’s Head and the Walter Arms, to name just a few. The Government should be championing those pubs. What steps are they taking to monitor the impact of the reduction in business rates relief, and the rise in national insurance contributions on pubs? If the Minister’s monitoring reveals that this Government’s policies are leading to a higher rate of business closures or are deterring investment, will he implore the Treasury to reverse the taxes and, instead, tax the big banks, implement a proper tax on the super-profits of oil and gas companies and tackle tax avoidance by properly investing in His Majesty’s Revenue and Customs?

People across the UK are watching with concern as the United States engages in economic sabotage of the global economy. In the UK, Britain’s steel sector is bracing itself for the pain of Trump’s tariffs, which are set to be applied next week. This will negatively impact our manufacturers, forcing price rises or reduced sales to the United States. Will the Minister urgently update the House on his Department’s efforts to ensure that the UK is excluded from the steel and aluminium tariffs?

It would also be helpful to understand what retaliatory action the Government would take if these tariffs were applied and whether it would include some action against Elon Musk’s Tesla. Nobody wants a trade war. It is bad for business, bad for consumers and bad for diplomatic relations. However, if we are to be attacked, we must ensure that we simply do not take it on the chin. That is why I admire the confidence of our great Commonwealth and NATO ally, Canada.

Donald Trump is trying to undo our western alliance, threatening to annex a nation that shares our King, and seeking to weaken its economy as a staging ground for that proposed takeover. The Canadian Prime Minister and the Leader of His Majesty’s Opposition in Canada are united in wanting to be at the negotiating table to get the deal done with the UK as soon as possible. As for Canada becoming the 51st state of the USA, I do not know any Canadians who are interested in that.

[Madam Deputy Speaker (Caroline Nokes)]

Order. I remind the Liberal Democrat spokesman to bring his remarks to a close so that we have time to hear from the Minister and the shadow Minister.

[Clive Jones]

Thank you, Madam Deputy Speaker.

We need to take action to deepen bilateral trade with Canada. Does the Minister share Canada’s sentiment about strengthening our economies? Does he agree that we need to take tougher action to stand up for our Canadian friends? Will the UK return to the negotiating table and start working on a trade deal with Canada as soon as possible?

[Madam Deputy Speaker]

I call the shadow Minister.