Department for Business and Trade

Harriett Baldwin Excerpts

Wednesday 5th March 2025 Commons Chamber

[Dame Harriett Baldwin (West Worcestershire) (Con)]

I shall try to make my speech short and snappy, Madam Deputy Speaker. I congratulate the right hon. Member for Birmingham Hodge Hill and Solihull North (Liam Byrne) on securing this afternoon’s debate, which has allowed many Members to articulate the concerns that they are hearing from businesses in their constituencies and enabled them to talk about the great importance of growth.

Growth is essential. We talk about the importance of defence and of increasing spending on it from 2.5% to 2.7% and then up to 3%, but of course we want the economy to grow at the same time. In the estimates before us today, the Secretary of State has laid out his ambitious goals for his Department. First, on the aim of delivering a comprehensive industrial strategy, I simply ask, eight months in, when will businesses see that. Secondly, on a plan to provide small businesses with tools and support, I simply ask, eight months in, when will small businesses see that. Thirdly, on a trade strategy that recognises that high-quality trade deals are necessary to give businesses access to international markets to boost jobs and deliver economic growth here, I simply ask when businesses will see a change on that front. Fourthly, on delivering sweeping changes to employment law, I have to say that, sadly, businesses have seen that. They have seen that the sweeping changes outlined in the Employment Rights Bill, which we will be scrutinising next week, will take us back to 1970s-style employment laws, adding £1 billion in costs just to the Government’s cost base alone. I wonder, Madam Deputy Speaker, whether at the end of the debate you might share a few words on whether it would have been appropriate for those hon. Members who receive contributions from unions to have declared them in the debate. We have had an excellent debate, but I did not hear any declarations of interest.

I heard excellent contributions from those on the Conservative Benches—from my hon. Friends the Members for Bognor Regis and Littlehampton (Alison Griffiths), for Bromley and Biggin Hill (Peter Fortune), for Dumfries and Galloway (John Cooper) and for Bridgwater (Sir Ashley Fox). They outlined and summarised the challenges that businesses face up and down the country. In contributions from the hon. Members for Tamworth (Sarah Edwards), for Dudley (Sonia Kumar), for Livingston (Gregor Poynton), for Portsmouth North (Amanda Marton), for Dundee Central (Chris Law), for Tewkesbury (Cameron Thomas) and for Wokingham (Clive Jones), we heard a range of concerns felt by real businesses that create the wealth of this country.

I turn to trade. I note that, in the supplementary estimates, the Department marks an increase under sub-head A4, the account that includes first and foremost the trade policy implementation and negotiations group. The note explains that the increase is owing to

“An international reorganisation within DBT which has brought our International Strategy and Development teams into this group from Strategy and Investment.”

Strategy and investment, meanwhile, have been cut by almost the same amount that this account has been increased by. I wonder whether there is a little bit of smoke and mirrors going on when it comes to the amount dedicated to increasing trade.

Increasing trade is one of the key routes to economic growth. Businesses in our constituencies would really benefit from further opening up of free trade. I note the welcome news that the Prime Minister talked to the President of America about a free trade agreement last week, but as of the end of January, no official or Minister from the Department had made any attempt to engage with the US Administration on trade. The Department has chosen to abandon the position of chief trade negotiator, which is either deliberate self-harm or wilful incompetence.

There was almost no public recognition by the Department or its Ministers of the UK’s accession to the comprehensive and progressive agreement for trans-Pacific partnership, which does indeed trip off the tongue. There is growing evidence that instead of investing in opportunities for trade with the US, Canada and the fast-growing markets of Asia, the Government are reverting to their ideological safeguard, relying on Brussels, and developing a Trojan horse strategy to realign the UK with the European Union.

Is the Department actually being given the tools that it needs to deliver on trade deals? If the Government claim to have set their sights higher, should not the resources reflect that? I worry that we are seeing a classic example of big words, big ambitions and Ministers just saying the word “growth”, but nothing taking place that actually delivers growth. It is eight months to the day since those on the Labour Benches entered Government. How many businesses in this country can say that things have got better for them in the last eight months? How many are more confident? How many can say that they expect the trade situation facing the United Kingdom to improve?