Oral Answers to Questions

Christine Jardine Excerpts

Thursday 25th January 2024 Commons Chamber

[Ms Ghani]

I gently say that the hon. Gentleman should pay attention to the hydrogen strategy, which shows we are leaning forward and ensuring that we can capture the investment, de-risk any of the testing and ensure that intellectual property can be commercialised here in the UK. We of course see hydrogen in the mix in our future energy spectrum.

[Christine Jardine (Edinburgh West) (LD)]

3. What assessment her Department has made of the implications for her policies of trends in the level of operating costs for small and medium-sized enterprises.

[The Parliamentary Under-Secretary of State for Business and Trade (Kevin Hollinrake)]

The Government have taken action to help SMEs deal with cost of living pressures, including freezing fuel duty, maintaining the 5p cut for a further year, introducing the energy bills discount scheme and reversing the national insurance rise. In the autumn statement, the Chancellor announced a substantial business rates package to support the UK’s small businesses worth £4.3 billion over the next five years.

[Christine Jardine]

Notwithstanding what the Minister says, I am still frequently being approached by small and medium-sized enterprises in Edinburgh West that are struggling to meet soaring energy costs, stave off inflation and deal with Brexit red tape. The number of Scottish SMEs in financial distress is up 10%, according to research, and those were formerly strong, stable and well-managed businesses. They have a huge impact on employment in tourism, which is one of our main industries. Will the Minister tell me what more the Department will do to reassure businesses in my constituency and elsewhere, and whether he will ask the Chancellor to do more in the forthcoming Budget to help them?

[Kevin Hollinrake]

The hon. Lady raises important points. Of course, the Chancellor can do nothing if the Scottish Government do not pass on our support to Scotland, which they have not done for business rates. I know that that is out of her hands, but it is a point she may want to raise with the Scottish Government. The average pub in Scotland is £15,000 worse off a year than its English counterpart because they have not passed through that rates support. The average restaurant or guest house is £30,000 worse off than its English counterpart, and closure rates in Scotland are 30% higher than in England.

--- Later in debate ---

[Kevin Hollinrake]

My hon. Friend raises an very interesting point. We have looked at this particular situation with interest and will continue to monitor it. Clearly, Asda is a private company and it is up to it to decide how best to deploy its workforce, but I am very happy to continue our conversation and I appreciate her engagement on this issue.

[Christine Jardine (Edinburgh West) (LD)]

T4. A lot of concern has already been expressed in the House this week about the steel industry. With the expansion of renewables across Scotland and the rest of the UK, there will be demand for the vital materials required to build more wind turbines, which may now need to be sourced from abroad. Will the Secretary of State tell us what steps will be taken to try to provide the vital materials for an important industry?

[Kemi Badenoch]

It is really important for us to not misrepresent what is happening on steel. Our steel industry is not disappearing; our steel industry is evolving. We will continue to have significant steelmaking capability in the UK, including producing materials for the industries the hon. Lady talks about. But we should also remember that the changes to Port Talbot are part of the decarbonisation that all Opposition Members have been asking for. This is the biggest single emitter of carbon in the UK and this House voted to reach net zero by 2050. Everything we are doing is to ensure that we do that in a sustainable and sensible way.