Industry and Exports (Financial Assistance) Bill

Harriett Baldwin Excerpts

2nd reading
Monday 15th December 2025 Commons Chamber

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

I am delighted to respond on behalf of the Conservatives, who have always championed British businesses. We believe very much in the ingenuity of our entrepreneurs, the skill of our engineers and the global reputation of our exporters. The Bill amends Acts dating from 1982 and 1991, and we believe that, time and again, our companies have shown that, with the right conditions, they can compete and win on the world stage. Updating those Acts will ensure that the Government have the tools to support our industries and exporters.

We should take pride in the extraordinary success of British exporters. The latest UK Export Finance annual report shows the scale of their achievements. Rolls-Royce and Airbus have together secured guarantees worth £165 million for supplying Ethiopian Airlines, £102 million for Avolon in Ireland and £66 million for Emirates in Dubai. That gives the House a flavour of the kind of deals supported through this finance. Defence exports remain significant too, with BAE Systems and MBDA receiving over £120 million per major contract, including support for the very important air defence systems in Poland. These figures demonstrate the global demand for British engineering, aerospace and defence expertise.

However, as the Minister pointed out in his opening remarks, beyond the headline numbers, 80% of firms supported by UK Export Finance are small and medium-sized businesses, which often supply the more global contracts. With their innovation and resilience, they are the backbone of our export economy, and they also deserve support and visibility.

The UK has a leading export and finance sector, and it can usually cover the commercial risks involved in exports, so UK export finance should be deployed only when no private sector solution is available. Generally, we are in favour of reducing subsidies, rather than increasing them, so we do not support additional taxpayer funding for the industrial strategy until the Government get the fundamentals of energy prices, tax and regulation right. Without tackling those basics, no amount of subsidy will ever deliver the competitiveness that our businesses need.

I have a few questions for the Minister. Can he assure the House that UK Export Finance will continue to be deployed only where no private sector funding can be secured? If this Bill is to meet its aims, export assistance must be spread across the regions. We saw from the autumn “Santander Trade Barometer” that three quarters of businesses that want targeted export support are beyond our capital. Optimism is high in sectors such as technology and media, but firms in Scotland and energy, construction and engineering companies are much more cautious. So there are regional disparities in economic outlook that the Government must address.

UK Export Finance is there to guarantee exports when the private sector cannot, and we would expect it to focus on countries where credit risks are higher. What new markets is the funding likely to be used for, and will some of the additional capacity be reserved for small and medium-sized businesses? Can the Minister reassure the House that none of this finance would ever be used to support exports to countries that could allow such goods to get around the sanctions on Russia, and that they are not used to export to any country that would wish us harm? Can he also reassure the House that, as the Foreign Office undergoes a restructuring, our fine network of embassies and high commissions are made aware of this so that we make the most of this export finance opportunity and have the right teams in place to support UK plc? Those are my opening questions for the Minister.

--- Later in debate ---

[Dame Harriett Baldwin]

I would like to pick up on some of the points made in today’s interesting debate and to reiterate that, as Conservatives, we have always stood shoulder to shoulder with Britain’s businesses and great exporters. In my opening remarks, I asked some questions of the Minister, and I look forward to hearing his replies. I thank my hon. Friend the Member for Chelsea and Fulham (Ben Coleman) and the hon. Member for Leyton and Wanstead (Mr Bailey) for all the work they are doing as trade envoys to the west and south of Africa. I remember when I was Africa Minister thinking how enormous the potential is for us to do more business with these nations, so it is interesting to hear how that work is moving forward.

A number of Members highlighted the excellent export work done by small and medium-sized businesses, and we heard some excellent examples from the north-east in particular. We also heard the case made by the hon. Member for Maidenhead (Mr Reynolds) for the importance of small and medium-sized businesses. I reiterate to the Minister, so that he is aware, the importance for the House of this money not just getting swallowed up by some of the larger household names, such as Rolls-Royce, Airbus and BAE Systems, but it giving that fighting chance to some of the smaller exporters.

I want to pick up on the point that the hon. Member for Maidenhead made about the customs union. The House will recognise how much work was put in to getting landmark trade agreements with 70 countries that give UK exporters preferential access to markets worth trillions of pounds. It is work that the Minister continues energetically around the world, and he will no doubt in his closing remarks point to the India and US free trade deals, which are important pieces of work that he has been involved in. Those free trade agreements that the UK has managed to negotiate would not be possible if we were in the European Union customs union. I challenge the hon. Member to point to where the research is on this fabled £25 billion.

In conclusion, the words of Ronald Reagan keep popping into my head during debates in this Parliament. He famously said:

“If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.”

I hope to hear from the Minister at the Dispatch Box how he will ensure that this additional money is used in the way that I said in my opening remarks, where it crowds in private sector investment and is there as a last resort to get a deal over the line, rather than crowding out private sector funding that would have been there were it not for the Government funds. Without further ado, having got my favourite Reagan quote about this Government on the record, I can assure the House that we will not be opposing the Bill.

[Madam Deputy Speaker (Judith Cummins)]

With the leave of the House, I call the Minister.