Asked by: Gareth Davies (Conservative - Grantham and Bourne)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, what assessment he has made of the implications for his Department's policies of the response by the British Chambers of Commerce to the Milburn Review.
Answered by Kate Dearden - Parliamentary Under Secretary of State (Department for Business and Trade)
I welcome Milburn’s clear diagnosis and the British Chambers of Commerce’s endorsement. This is not a temporary problem and partnerships between employers and education providers are critical. We will consider Alan Milburn’s full recommendations in the autumn as we shape the next phase of reform.
The Employment Rights Act will improve job security, quality and fair pay, with young workers among the largest beneficiaries. The Industrial Strategy, commits £1.2bn each year for skills by 2028-29 to deliver more opportunities in high-growth sectors.
We are working with DWP to ensure every young person can access work, training and apprenticeship opportunities through the Youth Guarantee.
Asked by: Gareth Davies (Conservative - Grantham and Bourne)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, what steps he is taking to support SMEs in (a) Lincolnshire and (b) other rural areas with changes in (i) employment and (ii) energy costs.
Answered by Blair McDougall - Parliamentary Under Secretary of State (Department for Business and Trade)
The government is supporting small businesses, including those in Lincolnshire and rural areas, to start, scale and grow as part of the Plan for Small Businesses.
We are delivering our Plan to Make Work Pay by extending the protections already offered by many British employers to millions more workers across the country. We provide practical guidance and support for businesses and workers, alongside wider engagement and educational activity.
Government monitors the impact of international energy markets on businesses and stands ready to respond. The Chancellor recently announced that from 2027, the British Industrial Competitiveness Scheme will cut energy bills by up to 25% for over 10,000 manufacturers.
Asked by: Gareth Davies (Conservative - Grantham and Bourne)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, what assessment he has made of the potential impact of business energy costs on private sector activity.
Answered by Chris McDonald - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The Government recognises that electricity prices are an important factor in private sector activity of UK-based businesses and is dedicated to bringing electricity costs for recipients closer in line with those charged in competitor countries. We engage regularly with industry and monitor evidence on the impact of energy costs.
Through our Industrial Strategy we are taking action to address these challenges, including through the British Industrial Competitiveness Scheme, which reduce electricity costs by up to £40/MWh for eligible businesses.
The Network Charging Compensation scheme was uplifted from 60% to 90% relief from 1s April 2026. This raised total support from the Supercharger to approximately £65-87/MWh.
Asked by: Gareth Davies (Conservative - Grantham and Bourne)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, what assessment he has made of the potential implications for his policies of the Confederation of British Industry's Growth Indicator forecast that private sector activity will fall by a net balance of 24 per cent in the three months to August 2026.
Answered by Chris McDonald - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
We know many businesses are facing difficulties and the situation in the Middle East is adding to their costs. We continue to promote growth through our Industrial Strategy, regulatory reform and other steps to ensure the UK remains competitive and its economic fundamentals remain strong.
Government is working closely with business groups and industry leaders to understand the pressures facing industry and develop measures to support. For example, the British Industrial Competitiveness Scheme will reduce costs for over 10,000 businesses. We are also putting in place safeguards and unlocking opportunities through international collaboration, as we have done with our FTAs in India and the GCC.
The UK had the fastest growing economy in the G7 in Q1 2026, and the IMF recently upgraded its UK growth forecast for 2026 and 2027, placing the UK 3rd in the G7 for both.
Asked by: Gareth Davies (Conservative - Grantham and Bourne)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, what assessment he has made of the Institute of Directors' finding that 75 per cent of businesses cite UK economic conditions as a negative factor affecting their organisation.
Answered by Chris McDonald - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
We know many businesses are facing difficulties and the situation in the Middle East is adding to their costs. We continue to promote growth through our Industrial Strategy, regulatory reform and other steps to ensure the UK remains competitive and its economic fundamentals remain strong.
Government is working closely with business groups and industry leaders to understand the pressures facing industry and develop measures to support. For example, the British Industrial Competitiveness Scheme will reduce costs for over 10,000 businesses. We are also putting in place safeguards and unlocking opportunities through international collaboration, as we have done with our FTAs in India and the GCC.
The UK had the fastest growing economy in the G7 in Q1 2026, and the IMF recently upgraded its UK growth forecast for 2026 and 2027, placing the UK 3rd in the G7 for both.
Asked by: Gareth Davies (Conservative - Grantham and Bourne)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, whether his Department has made an assessment of the potential merits of including commercial laundry services within wider sector support for hospitality.
Answered by Kate Dearden - Parliamentary Under Secretary of State (Department for Business and Trade)
The Department has not made a specific assessment of the case for including commercial laundry services within hospitality sector support. Our support for hospitality is focused on businesses directly operating within that sector, including through measures such as business rates relief and wider cross‑economy support. Businesses providing services to hospitality can benefit from broader schemes available to all sectors, including access to finance and business support programmes.
Asked by: Gareth Davies (Conservative - Grantham and Bourne)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, why commercial laundrettes, such as Johnsons in the Grantham and Bourne constituency, are not included in the Energy Intensive Industry Scheme.
Answered by Chris McDonald - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The British Industry Supercharger supports businesses by relieving them of certain electricity policy and network costs. The list of eligible sectors is based on European Commission guidelines, since eligibility was established when the UK was an EU Member State. The scheme currently targets businesses in sectors like steel and chemicals who are at the highest risk of carbon leakage and who meet specific trade and electricity intensity thresholds. The Government intends to review the scheme this year and interested stakeholders can engage with the associated public consultation. Any amendments to the policy are subject to ministerial and UK Parliament approval.
Asked by: Gareth Davies (Conservative - Grantham and Bourne)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, what steps his Department is taking to improve domestic manufacturing supply chains for the car industry.
Answered by Chris McDonald - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The Government is supporting investment into the transformation of our supply chains through DRIVE35, a £4 billion programme to 2035 funding the R&D, commercial scale-up and industrialisation of zero emission vehicle manufacturing in the UK.
This in addition to wider interventions to improve competitiveness and attract investment across the sector, including up to £100m under DRIVE35 for two EV manufacturing clusters in the North-East and the West Midlands.
We have also established a Supply Chain Centre within DBT to improve data on risks and strengthen the resilience of critical manufacturing supply chains.
Asked by: Gareth Davies (Conservative - Grantham and Bourne)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, what assessment his Department has made of the potential impact of the (a) European Union’s Industrial Accelerator Act and (b) ‘Made in Europe’ rules on the car and vehicle manufacturing sector.
Answered by Chris Bryant - Minister of State (Department for Business and Trade)
The EU’s Industrial Accelerator Act, as currently drafted, could disadvantage both the UK’s automotive sector and the UK-EU integrated automotive supply chains, which is why the Secretary of State and I have raised concerns with EU member states, Commission counterparts, and MEPs.
The current proposals are draft measures which are going through the EU legislative process for amendments. We are working with like-minded partners across the EU to ensure the final outcome guarantees growth across Europe’s complex supply chains.
Asked by: Gareth Davies (Conservative - Grantham and Bourne)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, whether his Department would consider the potential merits of including commercial laundry services within the Government’s Industrial Strategy.
Answered by Blair McDougall - Parliamentary Under Secretary of State (Department for Business and Trade)
The Government recognises that commercial laundry services provide an essential service, supporting the daily operations of key sectors such as hospitality and tourism. The Department for Business and Trade has not made a formal assessment of the sector’s contribution to the economy, and there are currently no plans to do so.
The Industrial Strategy focuses on driving growth through priority sectors and cross-economy policies. The Government continues to engage with businesses to understand the interdependencies between service providers and the wider economy.