Oral Answers to Questions

Chris McDonald Excerpts

Thursday 21st May 2026 Commons Chamber

[Chris Hinchliff (North East Hertfordshire) (Lab)]

4. What steps he is taking to develop an industrial strategy.

[The Parliamentary Under-Secretary of State for Business and Trade (Chris McDonald)]

We have just heard from the Secretary of State about our active industrial strategy. This question is timely, because we are one year on from setting out our industrial strategy. We have announced our British industrial competitiveness scheme, expanding its scope to support 10,000 businesses with their energy costs, a £500 million sovereign AI fund, and the creation of 19 new technical excellence colleges, giving opportunities for young people across the country.

[Chris Hinchliff]

If climate breakdown accelerates, many of the international supply chains that we have relied upon for essential goods and resources for far too long will cease to exist. We are sleepwalking towards a situation in which this country can no longer guarantee the basic needs of its people. At that point, no amount of AI slop or casino capitalism will be an alternative to actually making things. Before ecological collapse makes it too late, will Ministers use their industrial strategy to pivot our economy back to producing more of the essentials that we use in our daily lives?

[Chris McDonald]

My hon. Friend knows that when he talks about reindustrialisation and improving the manufacturing base of this economy he finds a very sympathetic ear in me. Certainly, we have all seen over the course of the past few years, through multiple crises, how the resilience of global supply chains has been reduced. Increasing the share of our economy that is dedicated to manufacturing will serve the ecological aims that he has mentioned, improve our national resilience and provide good, well-paid and high-productivity manufacturing jobs in our industrial heartlands across the whole of the country.

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

The largest sector of the manufacturing base is food manufacturing, but it was deliberately left out of the industrial strategy. As a consequence, food manufacturing is now facing rising input costs, especially from energy, and is unable to get the assistance that the Minister just referred to. The Food and Drink Federation thinks that food price inflation could get to 9% or 10% this year. With the benefit of hindsight, do the Government think that it was possibly a mistake to exclude food manufacturing from the industrial strategy?

[Chris McDonald]

At the time that the industrial strategy was established, the Government carefully selected those sectors that had the greatest growth potential for the economy, but we were also extremely clear in communicating that that does not mean that sectors that were not identified as having high growth potential were not important—quite the contrary. Our food manufacturing sector is incredibly important, and the Government are acutely aware of the issues around food prices. I believe that the Chancellor of the Exchequer may well have more to say on that subject in a statement later today.

[Sarah Coombes (West Bromwich) (Lab)]

The future of the car industry is in electric and automated vehicles, and the west midlands and the UK have always been leaders in car manufacturing across the world. Can the Minister say more about what we are doing to protect the industry and ensure that its future lies in the UK?

[Chris McDonald]

My hon. Friend is right that automotive manufacturing is a key part of our advanced manufacturing sector, and she has done a huge amount here in the House to champion the sector in her area nationally. One area we are focusing on is supporting the sector with the development of new technology, such as autonomous vehicles; last week, the Secretary of State signed a memorandum of understanding with Wayve. We are determined that the UK will become Europe’s first market for digital driving services, driving the market and driving our automotive industry.

[Sarah Pochin (Runcorn and Helsby) (Reform)]

In my constituency, I have one of the last remaining chlorine production sites, Vynova. On a recent visit, I was told that its future is uncertain because of production costs—it is a highly energy-intensive industry. Does the Minister agree that it is strategically critical that the UK has its own chlorine production, and will he meet me to discuss the future of the site?

[Chris McDonald]

I commend the hon. Lady for championing the chemicals sector in the House. I am extremely concerned about the sector, including chlorine, because it is vital to the UK economy, as she says. This Government are taking action through our industrial strategy to focus on heavy industry and energy-intensive industries. I might have an opportunity to speak with her later today, if that would be of interest.

[Mr Speaker]

I call the shadow Minister.

[Gareth Davies (Grantham and Bourne) (Con)]

The Government’s industrial strategy rightly states that improving skills in the construction sector is essential to keeping our country building. In fact, on page 44, there is a commitment to invest

“£625 million to train…60,000 more skilled workers”.

It has been one year since publication, so how many more skilled workers have entered the construction workforce as a result of that commitment?

[Chris McDonald]

The hon. Gentleman is right to point out the importance of construction skills. In fact, on a recent visit to a construction skills academy in east London, I had the opportunity to do a bit of tiling myself—that has come in quite handy at home, actually—and to talk to some of the young people, who realise that they are developing skills for life. The Government are incredibly committed to that. The hon. Gentleman may have missed it, but he will be pleased to know that the Government have announced five new technical excellence colleges to help young people to get those skills for life in the construction sector.

[Gareth Davies]

I am grateful for the update on the Minister’s tiling skills, but I did not hear a number showing how he is making progress on the £625 million commitment. Perhaps he can write to me on how they are making progress. One of the existing schemes that supports training is the Construction Industry Training Board, but many industry leaders believe that it is no longer working or delivering. Construction firms are facing significant bills as a direct result of the levy, all while the CITB is reducing training provision. What is the Minister’s view of the CITB, and has he engaged with the construction industry to discuss it?

[Chris McDonald]

Yes, indeed. I engage with the construction industry extremely regularly as the co-chair of the Construction Leadership Council, and skills, along with health and safety, are absolutely at the top of our agenda. The views of the construction industry on the Construction Industry Training Board are discussed there and decided there by the industry.

[Mr Speaker]

I call the Liberal Democrat spokesperson.

[Sarah Olney (Richmond Park) (LD)]

The Government announced their intention in the industrial strategy to use their procurement power to shape markets for innovation in the longer term. Tech start-ups in my constituency complain that the process of getting Government contracts is slow, risk-averse and structurally biased in its financial viability tests and paperwork requirements towards incumbents and US suppliers. As one of them put it to me, no one gets sacked for buying IBM. That surely prevents the Government from achieving their goal of greater innovation. What conversations is the Minister having with his Cabinet Office counterparts to ensure that our ambitious home-grown small and medium-sized enterprises are not being squeezed out of the competition for public contracts that could provide these firms with valuable growth opportunities and the innovation that our economy and public services so badly need?

[Chris McDonald]

The hon. Member raises an extremely important point: Government procurement can, of course, be an important lever for growing our economy. Whereas previous Governments used the fig leaf of being in the EU as an excuse to buy things from overseas simply because they were a penny cheaper, this Government are committed to ensuring that as much as possible of UK taxpayers’ money is spent in the UK.

The hon. Member asks what discussions I am having with Cabinet Office colleagues. I am having discussions with colleagues in the Cabinet Office, the Home Department, the Ministry of Defence and across Government, because there is a commitment among Ministers to ensure that Government procurement is targeted at British companies. My right hon. Friend the Secretary of State has made a strong commitment to reduce regulation and bureaucracy, so we can ensure that these contracts are awarded more efficiently and more easily to small businesses in the UK.

[Jerome Mayhew (Broadland and Fakenham) (Con)]

5. What steps he is taking to support pubs in Broadland and Fakenham constituency.

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[Cat Eccles (Stourbridge) (Lab)]

16. What progress he has made on implementing the steel strategy.

[The Parliamentary Under-Secretary of State for Business and Trade (Chris McDonald)]

Since publishing our steel strategy on 19 March, we have published provisional product scope and quota volumes for the new steel trade measures; further reduced electricity prices for steel companies from 1 April through our network charging compensation scheme uplift; confirmed that some steel companies will be part of the British industrial competitiveness scheme; announced new transparency requirements on the origin of steel in public procurement; set up a cross-Government working group on scrap; and introduced—today—the Steel Industry (Nationalisation) Bill.

[Mr Barros-Curtis]

Last week, Sev.en Global Investments announced a £100 million investment into 7 Steel UK in Cardiff, a site that I have recently visited. Do the Government agree that that investment shows our plan to prioritise a modern steel strategy is paying off for jobs and growth while putting working people in Wales and the rest of the UK first?

[Chris McDonald]

I do indeed agree. The £100 million investment in 7 Steel UK is welcome news, but I met the owners of the business, and they told me that they were able to release that investment only because of the confidence they had in the Government’s approach following the publication of our steel strategy. That is a direct correlation between Government action and £100 million-worth of investment in Cardiff.

I know that my hon. Friend has been a strong advocate of the steel industry. There is an opportunity later today for Members of the House to decide whether they are on the side of the steel industry or not. I encourage the Opposition to put their ideology aside just for a moment and get behind the steel industry this afternoon— I know that is difficult when a Bill has the word “nationalisation” in its title.

[Cat Eccles]

May I put on record my thanks to Ministers and the Department for their ongoing excellent engagement with me and my local businesses on the steel strategy? Many of the downstream businesses in my Stourbridge constituency currently import products—including zero-carbon steel—that are not produced in the UK. What steps is the Minister taking to ensure that businesses like those in my constituency are not unfairly disadvantaged by the quotas and tariffs being introduced under the steel strategy in a few weeks’ time?

[Chris McDonald]

I thank my hon. Friend for raising issues with businesses in Stourbridge when we met earlier this week; I am happy to continue to work with her. The measures we have introduced, which are primarily to protect the UK steel industry, are targeted at steels that are made or can be made in the UK. There are sometimes difficulties where a product code covers multiple steel grades, but that is what the quota system is intended to deal with, and of course there will be a review in 12 months’ time.

[Kit Malthouse (North West Hampshire) (Con)]

Further to the question from the hon. Member for Stourbridge (Cat Eccles) and my question to the Prime Minister yesterday, I am sure the Minister is aware that lots of manufacturing businesses are, frankly, screaming about the damage that the tariffs are going to do in five weeks’ time. Will he please consider an extension of the transition period to two years to allow three things to happen? First, it would allow UK steel capacity to grow in order to cover the gap. Secondly, it would allow quotas to be set correctly, so that UK businesses are not disadvantaged in the absence of UK production capacity. Thirdly, it would allow us to work out how it can be fair that somebody importing steel into the UK to produce a product pays tariffs, but somebody importing a finished product from overseas that is made from the self-same steel does not face tariffs.

[Chris McDonald]

I thank the right hon. Gentleman for his comments. I believe we have had representation from Stannah, the stairlift company based in his constituency. It is important to say that the Government take action like this reluctantly, but ultimately there are distortions in the market around steel. The EU taking action itself would lead to the UK becoming a dumping ground for cheap steel flooding in from overseas. We have taken a very carefully balanced approach and consulted carefully with the industry. I continue to receive representations, and, as I said, there is an opportunity for a review of the measures in 12 months’ time.

[Victoria Collins (Harpenden and Berkhamsted) (LD)]

May I gently but urgently reiterate the previous two questions? Sam, one of my constituents, has raised Dynamic Metals, an independent British supplier working on specialised steel and metals for aerospace and motorsports. We have to champion those industries in this country. From 1 July, his business will see import tariffs go from zero to more than £3 million. That is pretty much insurmountable, and this policy could have an awful impact on industries that we must champion. Will the Minister consider the points raised in the previous two questions, as well as extending the deadline and meeting my constituents and those of many others in order to understand the full impact? That way, we can stand up for our industries and support our steel partners.

[Chris McDonald]

I am not familiar with the situation with Dynamic Metals. I was just having a discussion on the Front Bench with the Minister for Trade, my hon. Friend the Member for Rhondda and Ogmore (Chris Bryant), and if the hon. Lady writes to him, he will look carefully at the matter she has raised.

[Mr Speaker]

I call the shadow Minister.

[Dame Harriett Baldwin (West Worcestershire) (Con)]

I will carry on with the same theme, because it is clear from all sides that there are real issues with the element of the steel strategy that imposes a 50% tariff on 1 July. It is affecting manufacturing businesses up and down this country, and it is being done in a way that not only threatens manufacturing jobs, but increases inflationary pressures. Can the Minister tell the House what impact assessment he has done on the effect of these measures on inflation and on jobs?

[Chris McDonald]

I reiterate the point that the action that the Government have taken has been to correct an issue in the market. We have taken wide representation. In fact, we amended the list as a result of some of that representation. The shadow Minister’s point about inflation goes exactly back to the point that I made earlier. This country cannot be in a position where we say that we are prepared to buy the cheapest thing, wherever it is made in the world, to the sacrifice of our own industry. We cannot allow foreign Governments’ industrial policies to drive our own industrial policy. That is why we have taken this action—similar action to that taken by the EU. It comes down to a question of whose side are you on. Are you on the side of British industry, like the Government, or are you on the side of overseas industry? That seems to be the case being prosecuted by the Opposition.

[Bradley Thomas (Bromsgrove) (Con)]

11. What steps he is taking to support pubs in Bromsgrove constituency.

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[Jayne Kirkham (Truro and Falmouth) (Lab/Co-op)]

Cornwall has so much to offer the UK—critical minerals, floating offshore wind in the Celtic sea, defence, geothermal energy—but infrastructure, particularly ports and rail, will be critical to enable growth. Cornwall is a perfect place to designate as an industrial strategy zone. Will the Minister agree to meet me and Cornish colleagues to discuss this?

[The Parliamentary Under-Secretary of State for Business and Trade (Chris McDonald)]

My hon. Friend is absolutely right about the potential in Cornwall, which is a unique and distinctive part of the country. It powered our industrial past and it will power our industrial future. I am happy to meet her and colleagues to talk more about the opportunities in Cornwall.

[Lincoln Jopp (Spelthorne) (Con)]

The pubs in Spelthorne are under the cosh. The Minister, in answer to my hon. Friend the Member for Broadland and Fakenham (Jerome Mayhew), said that a review of pubs and how they are valued for business rates purposes is ongoing. She will know that the review will not be relevant until 2029. Pubs are closing today. Young people are losing their jobs today. Will those on the Government Front Bench please do more to lobby the Treasury for our pubs?

--- Later in debate ---

[Leigh Ingham (Stafford) (Lab)]

In my constituency we are seeing good growth in our large employers and a great skills pipeline coming through from our advanced technical college, but we need a little support for our SMEs. Will the Minister say what targeted support is available for SMEs in towns like Stafford?

[Chris McDonald]

My hon. Friend raises an important point about support for small businesses. It is important that their cash flow is protected and that they are paid on time—hopefully my hon. Friend will have noticed the announcement of the Commercial Payments Bill in the King’s Speech, which will give us the strongest legal framework in the G7.

[Euan Stainbank (Falkirk) (Lab)]

Fifteen months on from the £200 million pledged for Grangemouth, and five months on from the Minister’s confirmation that prospective projects were being examined and shortlisted, what progress is being made to deliver new industry and jobs for Grangemouth?

[Chris McDonald]

My hon. Friend is right: £200 million is available for such projects. The initial £14.5 million of funding that was announced will help businesses to test the feasibility of their project ideas in order to secure long-term funding from the National Wealth Fund.

[Sarah Bool (South Northamptonshire) (Con)]

Back to the 1 July tariffs: the quotas are too small and the commodity codes are too broad. The steel required for aerospace can come only from, I think, SSUK, which is currently in liquidation. That grade of steel cannot be produced elsewhere—that is for commercial steel. Businesses will be bankrupted within six months—12 months is far too long. Will those on the Front Bench please listen to industry on this?

[Lillian Jones (Kilmarnock and Loudoun) (Lab)]

Does the Minister agree that expanding the use of home-grown timber in construction and manufacturing would not only support UK forestry and small businesses, but strengthen supply chain resilience and reduce our reliance on imports, which currently make up 80% of the timber we use? What specific measures will the Government introduce to support this sector as a strategic national asset?

[Chris McDonald]

My hon. Friend knows that I am a strong advocate of steel in construction, but she is right: there has been a missed opportunity on timber, particularly as many of our hardwood forests are coming to maturity, which means we will have a real surplus of hardwood in the UK. Something we will suffer from, though, is downstream processing of timber, so we need to look at how we can encourage more investment in the sawmills and downstream processing industry.

[Mr Speaker]

Order. I want to let Members know that Harriet Cross had the first topical question on the Order Paper, but she had withdrawn it. I want to reassure the House that that was a mistake, and we were following the agenda. Hopefully that will not be repeated by the Table Office.