UK Export Performance

Debate between Gareth Thomas and Aaron Bell

Monday 18th September 2023 Commons Chamber

[Gareth Thomas (Harrow West) (Lab/Co-op)]

This debate takes place 12 months on from the last Prime Minister’s kamikaze Budget, which was cheered by so many Members on the Conservative Benches. It made the cost of living crisis much worse, biting into the pockets of every family in Britain, and made tough conditions to do business even tougher. That Budget was not a one-off; we have now had 13 years of economic failure, five Prime Ministers, seven Chancellors, each one worse than the last, with the business environment getting harder, barriers to trade going up, increasing red tape and the driving up of costs, and cuts in business support making it tougher for Britain’s exporters. Indeed, the former exports Minister, the hon. Member for Finchley and Golders Green (Mike Freer), said just last summer that Ministers were not doing enough to help firms to send goods overseas.

In 2012, the Conservative party pledged to reach £1 trillion-worth of exports by 2020. It has not happened yet, and it does not look like it is going to happen in the next five years either. Indeed the Office for Budget Responsibility thinks it will not happen until 2035, 15 years late.

As my right hon. and learned Friend the Leader of the Opposition has repeatedly underlined, growing our economy is crucial to ending one of the bleakest periods in our country’s recent economic history and to delivering again the hope of a decent job and better prospects for all those wanting to work and their families. Exports are fundamental to that mission. Jobs linked to exports pay on average higher than average wages in the UK. So I welcome this debate, even if the analysis the Minister set out bears little resemblance to the frustrations countless business leaders have shared with us on this side of the House about the record of recent Ministers on exports.

The OBR, the Bank of England and the National Institute of Economic and Social Research have all predicted that exports will drop this year. I hope they are wrong because, when exports decline, jobs, investment and wages all decline too. If— Labour is determined to deliver this—we want the highest sustained growth in the G7, accelerating growth in our exports is fundamental. However, in the 13 years since 2010, British export performance has been outperformed by every member of the G7 apart from Japan. Figures from the House of Commons Library and from the United Nations—specifically, the United Nations Conference on Trade and Development—show that Canada saw a 10% growth in its exports of goods and services from 2012 to 2021, the last decade-worth of figures that are available, while the US saw growth in its exports over that period of almost 14%, Italy almost 16%, France over 16% and Germany almost 23%—but Britain, just 6%. Over the same decade, the EU as a whole saw growth in its exports of goods and services of almost 30%. Perhaps the Minister winding up this debate will tell the House why he thinks other countries of similar wealth and status have been doing better at exporting their goods and services than us. One of last year’s Prime Ministers, Boris Johnson, thought poor export figures were down to a lack of ambition from businesses themselves; I hope the Minister does not share that view.

Hidden deep in the last White Paper on trade was the admission that, while the share of global goods exports has dropped for most G7 countries, the UK share appeared to have declined faster than most. What was striking about that admission is that Ministers offered no explanation for it, and the situation does not appear to have got any better. Figures compiled in the UK by our own Office for National Statistics reveal that, since just before the general election, UK goods exports to some of our biggest markets have dropped significantly: to Germany, our second biggest market, exports of goods have dropped by 7.5%; to France, our nearest neighbour—our fifth most important market—our goods exports are down over 6% since the election; goods exports to Spain have seen a 9% drop; and to Sweden a 5% drop. There certainly does not seem to have been any attempt across Government to understand why others are doing better than us at exporting.

International Monetary Fund data suggests that, since the last election, every other member of the G7, in sales to key export markets near to us, is performing better. British exports of goods and services to Germany are down by 17% since May 2019. To France, they are down by 14% since May 2019. American, Canadian and Italian exports to France and Germany are all up by over 20%. Even Japan is doing better than we are at selling goods and services to France and Germany since the general election.

But it is trade with India that perhaps most tellingly lays bare the steady relative decline in Britain’s trading performance. Despite better figures on services, our exports of goods to India actually declined over the last decade. This is a country where Britain has a long and deep history. There are many barriers to trade, but it is extraordinary that other countries have been able to increase their exports of goods while Britain has not.

These figures make it all the more surprising that Ministers cut support to help businesses get to trade shows, find new markets and win their first export contracts. The Government cut support in recent years to trade bodies wanting to run their own trade missions, and they cut direct support, too. The trade show access programme—the key support for businesses new to exporting—had its funding cut so much that only 10% of the number of businesses that were helped by the programme under the last Labour Government appear to be getting help from this Secretary of State’s trade show access programme.

At the last general election, exporters and the wider British public were promised by the Conservatives that 80% of all trade would be conducted under the free trade agreements that Ministers would have signed by now, and that a trade deal with the US, our biggest market for goods and services, was going to happen by the end of last year. Neither has happened. We were promised a deal with India last year by Diwali. Will there be one by Diwali this year? Indeed, most of the deals that have been signed by Ministers were roll-over deals—cut-and-paste jobs. Ministers have routinely exaggerated the benefits of the trade deals they have negotiated for exporters.

While the deals that Britain has signed with Japan, Australia and New Zealand are welcome, particularly for geopolitical reasons, the quality of the negotiating effort by Ministers has hardly been inspirational. The deal with Japan, according to the impact assessment, appears set to benefit its exporters four times more than British exporters. The former Environment Secretary, the right hon. Member for Camborne and Redruth (George Eustice), admitted that he thought that Britain, when negotiating the trade deal with Australia,

“gave away far too much for far too little in return”.—[Official Report, 14 November 2022; Vol. 722, c. 424.]

While any increased opportunities for trade are welcome, at just 0.07%, 0.08% and 0.02%, the new trade deals with Japan, Australia and New Zealand will not lead to huge boosts to Britain’s economic growth or to great surges in exports. Even the CPTPP will only boost exports enough to see a 0.08% increase in our GDP.

Talking to businesses and their representatives, there is widespread frustration with the trade deal that the Conservatives negotiated with the European Union. The Institute of Directors underlined that almost 50% of its members found the UK’s trading relationship with the EU challenging. The British Chambers of Commerce, Make UK and the Federation of Small Businesses all highlight the real difficulties that their businesses are still having in getting their goods and services into European markets. Without changes, the trading arrangement with Europe will continue to compound the challenges our exporters face and risk cementing further the Government’s record of low growth and higher taxes. Ministers have been too slow to recognise the problems in the trade and co-operation agreement, and far too slow in trying to address them. The failure to sort the rules of origin issue for our car manufacturers, which the previous debate addressed, is just the most pressing example.

We on the Opposition Benches are determined to improve conditions for trade with Europe to make Brexit work. We will not rejoin the single market or the customs union, but we will use the 2025 review of the trade and co-operation agreement to push for better terms of trade.

[Aaron Bell]

I am interested to hear what the shadow Minister has to say about the Brexit situation and renegotiating with the EU, because in the Financial Times at the weekend, we see that “Keir Starmer pledges to seek major rewrite of Brexit deal”, when in 2020, The Guardian’s headline was, “Labour will not seek major changes to UK’s relationship with the EU”. Which is it? Why is the Leader of the Opposition proposing to extend further uncertainty on British businesses, who are busy getting on with exporting around the world?

[Gareth Thomas]

I am not sure whether that was one of the questions that the Whips gave out to the hon. Gentleman, but I have made it clear that we will not rejoin the single market or the customs union, but we will seek to use the 2025 review to push for better terms of trade. We will seek to negotiate a veterinary agreement with the EU to help in particular hard-pressed food, farming and fishing businesses. We will accelerate efforts to secure mutual recognition agreements to make it easier for our professionals to work in EU markets.

Specifically on Europe, many businesses are concerned by Ministers’ plans to unilaterally extend a Windsor framework requirement for food and drink to be labelled “not for EU” this time next year when goods are sold across England, Scotland and Wales. They are particularly concerned because many say that they were not consulted. This measure will apply to a large share of food products in shops, including meat, dairy, pet food, fish and fruit and veg. Given that businesses are warning that this could increase costs, as they will not be able to supply identical products for sale in both EU markets and the UK, it would be good to know which businesses and business groups were consulted, and what their views were.

The biggest challenge and opportunity that Britain faces is climate change. British businesses could be at the heart of the race to net zero. Indeed, the global transition to green technologies is projected to create new industries worth £1 trillion by the end of this decade alone. However, when the Secretary of State called net zero targets “arbitrary” and “unilateral economic disarmament” only last year and could not deliver even one new offshore wind farm in last week’s energy auction, we are not exactly in the best place to take the climate science innovation of British businesses, universities and other innovators and export them to the rest of the world. We on the Opposition Benches would create a nationwide network of climate export hubs to support every region in the country to secure new skilled jobs and opportunities from green trade. In particular, we need to make sure of help for trade and exporters in every region of the UK. Only 1.4% of exporters are from the north-east and less than 5% are from the midlands.

There is remarkable talent in every part of our country, yet wages here no longer keep pace with the hopes and dreams of the British people. The Government are delivering one of the worst rates of economic growth of any country in the G7. Their own Ministers believe they are failing British exporters. It does not have to be this way. Our ambition on the Opposition Benches is for a dynamic trading Britain, where businesses are not held back by Government negotiating failure or a lack of support at key moments. There are exceptional businesses in this country, and they deserve better than what Ministers are offering. Instead of pushing up trade barriers and pushing away investment, and instead of cutting support to businesses to export, we on the Opposition Benches will back British exporters. We will have the back of British exporters.

NHS Workforce Expansion

Debate between Gareth Thomas and Aaron Bell

Tuesday 28th February 2023 Commons Chamber

[Aaron Bell]

I welcome the hon. Lady to her place and congratulate her on her recent election. I believe that her predecessor, Rosie Cooper, is now responsible for the issue that she has just raised, so perhaps she will have some luck if she speaks to her about that—[Interruption.] Have I got that wrong? I do apologise. By the way, I would like to pay tribute to Rosie Cooper, because I did not have the chance to do so when she left. She handled herself with great dignity in the face of some very unacceptable circumstances, and I pay tribute to her. I see several by-election victors on the Opposition Benches and I congratulate them all. I cannot speak exactly to the hon. Lady’s NHS trust. I am sure that if she writes the Minister or speaks to the NHS trust directly, she might get some answers as to what is going on in Southport, but if she will forgive me, I represent North Staffordshire.

Before I detail the work that the Government are doing, I would like to praise the work of everybody in the NHS—as the Opposition Front Benchers did—and particularly those in North Staffordshire who working in our hospitals and GP surgeries, our health visitors and clinical staff, and those who support those people. It has been a difficult winter—after a difficult few years—with covid and flu peaking simultaneously in December. I am pleased to report that the most recent figures from the integrated care board for Stoke and Staffordshire show that ambulance handovers hugely improved in February, compared with where they were in January, which was unacceptable, as I said in the House at the time. There has been an 8% increase in primary care appointments, compared with a year ago, with 73% delivered face to face—higher than the national average—and waiting times for surgery are falling, including for cancer treatment at the Royal Stoke Hospital. I pay tribute to everybody working at the coalface in the NHS, because I know what difficult work it is and we are all extremely grateful.

Turning to NHS workforce expansion, this Conservative Government are strengthening the NHS workforce. In hospitals we have 5,000 more doctors and 10,500 more nurses compared with October 2021. Compared with 2010, when the last Labour Government left office, we have 37,000 more doctors and 45,000 more nurses in our hospitals. We are also building up the workforce in primary care, recruiting 26,000 more primary care staff by March 2024—a target that is on track, unlike the target in Scotland. In Newcastle-under-Lyme, the number of doctors, nurses and other clinical staff based in GP surgeries has increased by 46% since September 2019. That is 55 additional full-time equivalent people. So we are seeing a growth in Newcastle-under-Lyme as well.

Workforce expansion is also about retention, as the Minister said. Times are tough for everybody, given what Putin’s war in Ukraine has done to inflation, but we have always prioritised NHS workers, especially those earning the least. A million workers received at least an additional £1,400 in their pay packets in the last year, and we accepted the independent pay review in full. During covid in 2021, we protected healthcare workers, giving them a pay rise during a wider public sector pay freeze and when private sector wages were falling. The full-time basic salary of a newly qualified junior nurse at the bottom of band 5 is now over £27,000, and experienced nurses or midwives at the top of band 6 are earning £40,588. On top of that, they get excellent pension provision, so we are looking after our NHS staff by paying them and retaining them.

More generally, we are also increasing the number of beds across the hospital estate. A new ward with 28 beds recently opened at the Royal Stoke University Hospital, but I know Tracy Bullock wants more, and I will speak to the Minister about that. We will need more beds for next winter, because the Royal Stoke is under incredible pressure, not least because of the burden of the New Labour private finance initiative contract that costs them a fortune to maintain. A previous Health Secretary ranked the worst 10 PFI contracts, and I believe that we were 11th or 12th at the time. The hospital has to live with that burden, and I raise it again with the Minister today; we want what went wrong before to be put right.

[Gareth Thomas (Harrow West) (Lab/Co-op)]

I hope the hon. Gentleman will not mind my encouraging the Minister to look, in addition to the case for more investment in his local hospital, at investing more in Northwick Park Hospital, which serves my constituents. It needs a 60-bed intensive care unit to improve the quality of critical care and, crucially, to help attract more critical care nurses and other medical staff.

[Aaron Bell]

I thank the hon. Gentleman for his point; I am sure the Minister has heard it. I will not say any more about that specific case, because I do not know his constituency that well—although I did work in Harrow once upon a time.

We had 120,000 more GP appointments every day in January ’23 compared with January ’22, and we are delivering the biggest ever catch-up—it is a necessary catch-up—over the next three years, with an extra £45.6 billion in funding to help us recover from covid. That will mean 9 million more scans, 9 million more checks and 9 million more procedures for the people who need them.

We know what Labour would do. It claims to have a plan funded through non-dom status, but I doubt that would raise the money, not only for the reasons I gave in the Opposition day debate at the end of January, but because it has already committed that money to breakfast clubs and various other things. There is a never-ending magic money tree that pays for all Labour’s commitments —[Interruption.] I know that the shadow Health Secretary and others have made many unfunded spending commitments. Labour’s answer is always more money, and the answer to how that will be funded is always a non-dom tax, which would not even raise the money Labour claims, as Ed Balls said, as Alastair Darling said, and as Gordon Brown found out for himself.