Department for Business and Trade

Clive Jones Excerpts

Wednesday 5th March 2025 Commons Chamber

[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 They asked me to give a clear message to the Minister that business rates are outdated and need meaningful reform—most importantly, sooner rather than later.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.