Department for Business and Trade

Debate between Gareth Snell and Liam Byrne

Wednesday 5th March 2025 Commons Chamber

[Liam Byrne]

My hon. Friend is 100% right. We heard businesses say to us loud and clear that they wanted radical and bold changes in the way that the skills levy was organised. The Government have moved to introduce flexibilities, and business want them to go further, faster.

We also heard business say that there is a good environment when it comes to start-up finance, but a terrible environment in this country for scale-up finance—I will return to that in a moment. People want much stronger relationships between universities and businesses, and we in this country still do not have something like the Fraunhofer institutes in Germany, which have as their slogan that they are the research and development departments for the Mittelstand. Where those knowledge transfer partnerships work, they are good, but they need to be far more prevalent. Finally, we heard businesses say loud and clear that the planning system needs a complete overhaul. The infrastructure in this country is terrible, and we must drive down energy prices; right now, many businesses are being priced out of doing business because our energy prices are sky high.

For all our differences, there are important points on which we can agree. We on the Business and Trade Committee will continue to judge Ministers against many of the things that we heard from the business community as we travelled up and down the country, and I will flag up two or three points that we want to zero in on.

[Gareth Snell (Stoke-on-Trent Central) (Lab/Co-op)]

My right hon. Friend’s point about energy costs and opening markets chimes with everything that the ceramics industry is telling me about what it is facing. He is right about the need for growth, and as well as being a wonderful Chair of the Committee, he is a doughty campaigner against inequality and inequity. I am sure that he will agree that we need to ensure that the benefits of growth are felt in every community, be it in Birmingham or Stoke-on-Trent, and particularly in those communities that sadly, under the last Government, did not get the benefits they deserved.

[Liam Byrne]

My hon. Friend is an extraordinary champion for the city he represents, and for the industry that has made that city great over the centuries. He is absolutely right: when the industrial strategy is published, we must understand whether it is driving growth and better wages, and whether it is transforming people’s ability to earn a good life in every corner of the country. We cannot again have the situation that we had over the past 10 to 15 years, where 70% of the growth and wealth in our country has been concentrated in London and the south-east. We must genuinely level-up this country and pull together a cross-party consensus, to the extent that we can, on the changes that are needed. Why? Because if we can get that cross-party consensus, we can redesign the economic institutions in our country in a way that is sustainable for the long term.

I wish to flag three issues that pose questions to the Minister who is asking us to agree the estimates today. First, there is a real worry in the small business community about whether it will be adequately supported by some of the changes that the Minister is helping to drive through. We all know that what has bedevilled our economy for a long time is a long tail of underproductive, often smaller, firms. If we are to raise wages, raise the rate of economic growth, and become the fastest growing economy in the G7, we must transform the productivity rate of a lot of our small firms. How will new technology be diffused through supply chains? How can we ensure that small and medium-sized businesses have support in deploying new technology that could change their business?