British Industrial Competitiveness Scheme

Debate between Catherine Atkinson and Peter Kyle

Thursday 16th April 2026 Commons Chamber

[Peter Kyle]

I am grateful to the shadowy Business Minister for his greatest hits performance for the House today. He says that supporting 10,000 businesses is nothing. I can tell him that it means a hell of a lot for those businesses getting that support, because it will mean a 25% reduction in their energy costs. It is being paid for, of course, by reducing some of the tariff charges and by some of the other Government schemes that offer relief. It is also paid for partly by the Exchequer, which is funded by people who pay their taxes.

[Catherine Atkinson (Derby North) (Lab)]

I hosted a meeting of small and medium-sized manufacturers in Derby about the challenges of energy costs as part of a manufacturing commission inquiry on SMEs and growth. I welcome the expansion of Government support for British business in energy-intensive sectors by slashing their electricity charges. Can the Business Secretary assure us that the scheme will support smaller manufacturers as well as the largest, and can he tell us more about how this Government will continue to work proactively, hand in hand, with businesses to meet challenges, rather than sitting on their hands like the last Government?

[Peter Kyle]

I am extremely grateful for my hon. Friend’s representations and reflections. I can assure her that the BIC scheme is being calculated on the electricity intensity threshold. It is for those manufacturing businesses that have electricity as a significant part of their costs of doing business. In the summer, we will announce an eligibility checker so that every business can go and check their own eligibility for the scheme going forward. I am keen to stay in touch with her because her area around Derby, of course, is part of the manufacturing renaissance, creating great opportunities for not just her region, but the whole country.

Artificial Intelligence Opportunities Action Plan

Debate between Catherine Atkinson and Peter Kyle

Monday 13th January 2025 Commons Chamber

[Peter Kyle]

I will make the basic point again, because I think the hon. Gentleman needs to hear it again: I could not cut something that did not exist. I have extended the life of the existing supercomputer for another year, so that people have the reassurance that the capabilities needed are there, via the University of Edinburgh. In that time, I have been working on a strategy that will have resilience because it will be fully costed, fully planned and fully funded, so that from spring, when the strategy will be released, those who need to know the strategic opportunities in our country will have the certainty that they need, now and for the long term.

[Catherine Atkinson (Derby North) (Lab)]

A barrier to the growth of data centres for AI is their need for power. Rolls-Royce in Derby is at the forefront of small modular reactors and micro-reactors. SMRs are small enough to be on or next to data centre sites, and micro-reactors are the size of a shipping container. Co-location would mean less vulnerability to grid failure and cyber-attacks. Will the Secretary of State work with the Department for Energy Security and Net Zero to explore whether this could be the clean energy solution needed to support sovereign AI capabilities?

[Peter Kyle]

I am grateful for my hon. Friend’s very pertinent question. Investment is going into new sources of energy from investors around the world. I am really pleased that we have Rolls-Royce, which I visited just before the election, up in Coventry. I saw some of Rolls-Royce’s capabilities and heard some of its ambitions. I assure her that the AI Energy Council, which I chair jointly with the Energy Secretary, will take into consideration these sorts of issues, and ensure that the Government engage with those innovations. We want to ensure that we are at the forefront of not just data infrastructure but all the related industries from which our country can benefit.