UK Trade: Aviation
Henry Smith Excerpts(6 months, 3 weeks ago)
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Henry Smith (Crawley) (Con)
I thank Mr Speaker for granting me this debate on the importance of aviation to UK trade and to the future of our nation’s economy more generally. Let me start by declaring my interest as the founder and current chair of the all-party parliamentary group for the future of aviation.
I believe that aviation is a strategic enabler of the kind of export-led, high-growth economy that Members on both sides of the House want to see. Research being prepared by Manchester Airports Group and WPI Economics, of which I have been given advance sight, shows not only the potential for the UK to become a services sector superpower but the way in which we, as an island trading nation, are disproportionately reliant on aviation in comparison with similar economies. My argument this afternoon is that we should recognise that the UK aviation network—the third largest in the world—is a vital asset and a key component in the economy that we are seeking to build further, and that we therefore need the right kind of supportive policy environment to help it to flourish. That includes leaning into the benefits and opportunities on offer from decarbonising aviation for the sake of environmental protection, going faster and further than other countries precisely because of how much we have to gain economically from the sector, including the great British exporting businesses that rely on aviation for their own success.
Figures published recently by the Office for National Statistics show a 63% real-terms growth in the export of services in the 14 years to the end of 2023. As for goods, the UK air freight contribution across all sectors of the economy is more than £87 billion.
Against that backdrop and given that the UK is already the second largest exporter of services after the United States, respected think-tanks such as the Resolution Foundation are saying that the path to transformative economic growth for the country lies in its becoming a services sector superpower, and striking up new services trade agreements with countries such as Singapore, Japan and Australia.
Sir Robert Syms (Poole) (Con)
The World Bank recently conducted a survey in which it looked at the future of world trade. It said that services were the area in which trade was mostly likely to grow and that Britain was very well placed to take advantage of that, especially in the light of all the trade deals that we are doing.
Henry Smith
My hon. Friend is entirely right. The United Kingdom has a strong record of being a services economy, and we could go still further now that we have left the European Union and are realising those trade deals, both trans-Pacific and involving other parts of the globe.
The UK should be selling more high-value services in areas such as banking and architecture, in which we have a competitive advantage, to boost productivity and tax revenues and raise the trend rate of growth. In the light of that, Manchester Airports Group has commissioned WPI Economics to study the export growth potential of key sectors such as technology and financial and professional services, in which—as my hon. Friend has just pointed out—we clearly have great strengths. Given the UK’s status as an island trading nation and our distance from some of the key export markets that we need to target, the research is also exploring the importance of aviation and international connectivity to the growth and trade prospects of British businesses in those sectors. The research findings will be published later this month and its publication will be marked by an event here in Parliament, but I am pleased to be able to share a few of the key headlines with the House today.
The sectors in the economy that are most reliant on air travel, from real estate to finance and insurance, create or induce some £1.5 trillion of gross value added—or economic contribution—for the United Kingdom. Key growth sectors of vital importance to the economy and reliant on air travel, such as financial services, creative industries and real estate, are projected to grow by 54%, 25% and 54% respectively in the period to 2033. In 2023 the UK was ranked fourth out of 132 countries in the global innovation index, and the researchers have found that innovation and international connectivity are positively correlated. If the UK wants to grow an innovation-based economy with a concentration of knowledge-intensive industries, it must maintain and grow its direct connections with the outside world. The UK has been ranked fourth in the global knowledge index—the global economy would lose almost 1% of GDP were the UK not to send business travellers abroad—and in respect of the total value of exports, adding more than £900 billion to the British economy and supporting hundreds of thousands of UK businesses.
Having more direct flights from the UK regions to international destinations could help to boost investment, trade, tourism and education opportunities as local businesses seek to leverage the additional connectivity at their disposal. In the north of England, for example, that could play a supportive role in the Government’s levelling-up policy. As for London and south-east England, Gatwick airport’s northern runway proposals would support more long-haul services, enabling increased volumes of cargo and services trade to and from key destinations such as north America, the middle east and Asia. London’s Heathrow airport accounted for more than £200 billion in UK trade passing through in 2022, delivering a positive trade balance of more than £300 billion.
Businesses in these sectors have been interviewed and have set out the role that international connectivity plays, and will continue to play, across a range of key activities: securing investment, clinching deals, building, maintaining and inspecting global supply chains, and promoting knowledge transfer. If we accept that business travel and a healthy, growing aviation sector are preconditions for the type of services-led economic growth that experts say the country should be going after, we need to be clear-eyed about the No. 1 strategic challenge that it faces, namely the achievement of net zero in carbon emissions by 2050 that is the Government’s ambition.
As the UK is disproportionately reliant on aviation to support growth, given its status as an island nation, we should lean into the economic benefits available from its decarbonisation, going further and faster than other countries. The key technology to decarbonise aviation in the medium term is SAF, or sustainable aviation fuels, which can reduce lifecycle emissions by 70% in comparison with conventional jet fuel. The choice for this country is between importing SAF from other countries to decarbonise UK aviation and reach net zero by 2050 and investing in our own domestic sector, which provides a secure, home-grown supply of low-carbon jet fuel to build resilience into the economy and generate thousands of skilled jobs in the process. If we end up importing SAF, we will be at the mercy of volatile international energy markets and, in the event of global scarcity of supply, it will push up airfares, which in turn will push up the cost of doing business for precisely those companies identified in the research I referred to—companies that UK business needs to be travelling and exporting more to grow our economy.
It has to be said that last week the Government made a very positive announcement about measures concerning SAF. First, they are enshrining a sustainable aviation fuel mandate, which means that 10% of all jet fuel needs to come from low-carbon fuels by 2030. Secondly, they are consulting on a revenue certainty mechanism, which could help to incentivise and encourage the building of SAF plants and infrastructure here in the UK. However, a wider package of policy support is needed to create the right environment for this industry to take off, and for the UK to become a global leader. For example, the Department for Environment, Food and Rural Affairs’ waste hierarchy needs to be amended to secure domestic—or “black bin bag”—waste as a viable feedstock or input into making sustainable aviation fuels.
Using household waste to make green jet fuel is not just important because of the way it protects and helps to sustain a strategic enabler in aviation; research from transport sustainability experts ICF shows that using such waste to make SAF, instead of its current use in incineration to produce electricity, would help cut UK carbon emissions too. Indeed, the reduction in carbon emissions would be at least five times greater, not least because nearly half of all electricity in the UK already comes from renewable sources—again, thanks to the great strides that have been made over the last decade by this Government.
A cross-departmental plan is needed across Whitehall to recognise aviation’s role in our make-up as an island trading nation, and in the type of economy we need to grow to become even more competitive. My suggestion to the Minister is that the Department for Business and Trade has a critical role to play in this plan because of the sector’s role in underpinning the success of services exports on which this country’s future prosperity relies.
The UK does not have to choose between growing our economy through international travel, or travelling less and protecting our environment. By innovating and being global leaders in new sustainable aviation fuels technology, we can increase our services and goods sectors, and be at the forefront of new green technologies. We have some iconic British brands that have already demonstrated this. Last November I experienced the first transatlantic flight to use 100% sustainable aviation fuel when Virgin Atlantic, headquartered in my constituency, flew from London Heathrow to John F. Kennedy airport in New York, powered by Rolls-Royce Trent 1000 engines using sustainable aviation fuels. I believe that we should be optimistic about our future economy and our environmental protection, with Britain a global leader in both.
Oral Answers to Questions
Henry Smith Excerpts(7 months, 1 week ago)
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Dame Nia Griffith (Llanelli) (Lab)
Henry Smith (Crawley) (Con)
The Secretary of State for Science, Innovation and Technology (Michelle Donelan)
In our White Paper on AI regulation we set out our ambitious pro-regulation, pro-innovation framework, outlining five cross-sectoral principles to be applied by existing regulators. In February we published our response, setting out how we are supporting regulators to deliver the framework and strengthen our global AI leadership. That includes new funding and guidance for our regulators, and we have established a central risk function to support.
Michelle Donelan
The hon. Member is getting confused between regulation and legislation. We already have a plethora of regulation and world-leading regulators that we are supporting. We were clear in our White Paper response that we will legislate—as will every nation around the world—but we want to get that legislation right. She commented on the US’s approach. We are working hand in glove with the US, and I signed the world’s first memorandum of understanding on AI institutes just a few weeks ago.
Henry Smith
What assessments have the Government made of the United Nation’s plans to internationally regulate artificial intelligence? What are the implications for UK sovereign security?
Michelle Donelan
The UK Government are committed to unlocking the opportunities of AI, while mitigating the risks. That requires both domestic and international action. The UK is a leading voice internationally, having hosted the AI Safety Summit, which delivered the world-first Bletchley declaration, as well as actively participating at the UN. That includes our proactive role shaping UNESCO recommendations on AI ethics.
Defending the UK and Allies
Henry Smith Excerpts(10 months, 1 week ago)
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The Prime Minister
I thank the hon. Gentleman for his support. On its merits, as I said, our initial assessment is that we have been successful in destroying the specific targets that were selected, but that remains an initial assessment. We want to see what he spoke about: a return of safe shipping to the region. The Transport Secretary is engaging regularly with companies about their passage, and we will continue to do everything we can, working together with our allies, to ensure that safe passage through the region.
Henry Smith (Crawley) (Con)
The Iranian-backed Houthis are a terrorist group who have killed hundreds of thousands of Yemenis and are fighting the internationally recognised Government in Yemen. The action that the UK took with allies last week was absolutely correct. What further efforts are the Government making to augment the already impressive international coalition, with more countries stepping up and playing their part, to ensure freedom of navigation, which is so important for global free trade?
The Prime Minister
My hon. Friend is absolutely right, and we will continue to engage diplomatically to broaden that coalition. As he knows, 14 countries have signed the statement—the UN Security Council resolution—but ultimately everybody is impacted when freedom of navigation is imperilled as it is, not just through the security of their citizens, but because of the shock to their domestic economies from higher inflation. So I am confident that we will continue to have a broad coalition for condemning what the Houthis are doing and calling on them to desist.
Israel and Gaza
Henry Smith Excerpts(1 year, 1 month ago)
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The Prime Minister
I believe that we must absolutely support Israel’s right to defend itself and to ensure that attacks like this cannot happen again, but as a friend, we will continue to call on Israel to take every precaution to avoid harming civilians, and we will provide humanitarian support.
Henry Smith (Crawley) (Con)
This morning, I was contacted by a constituent who, on visiting London on Saturday, was deeply disturbed by the pro-Hamas chants that were being shouted, the destruction of national monuments, the fact that the main stage for the protest was right next to the Cenotaph, and media reports of somebody with a Union Jack being detained and led away. What representations are going to be made to the Mayor of London and the Metropolitan police so that future protests are policed appropriately?
The Prime Minister
We have ensured that the police have the tools, powers and guidance they need to police these protests appropriately. Obviously, this is a difficult situation. I am thankful to them for what they did over the weekend: they have made, I think, over 20 arrests, and as I said, they are currently reviewing footage of some of the things we have seen after the fact. Where they can, they will make further arrests, but we are clear: people may be free to express their views, but where they are inciting racial or religious hatred, that is against the law and they will meet the full force of the law as a result.
Oral Answers to Questions
Henry Smith Excerpts(1 year, 4 months ago)
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The Deputy Prime Minister
The hon. Lady will know from our conversations when I was Digital Secretary that I share her concerns about gambling inducements. Indeed, I pay tribute to her for her campaigning on this issue. I think we have a very good set of proposals in the gambling White Paper. That sits alongside the 2019 “NHS Long Term Plan” which committed to 15 specialist units across England by 2024 to support those with gambling addiction. I think we have good proposals in place.
Henry Smith (Crawley) (Con)
May I draw the House’s attention to the fact that we have the Chief Minister of His Majesty’s Government of Gibraltar in the Gallery, Fabian Picardo? May I seek an assurance from the Deputy Prime Minister that, as the UK-EU negotiations on the border between Gibraltar and Spain continue, the sovereign, freely expressed opinions of the Gibraltarian people to remain British will be protected, as well as their security and economic interests?
Oral Answers to Questions
Henry Smith Excerpts(1 year, 5 months ago)
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The Prime Minister
We are investing record sums in NHS capital; I can tell the hon. Gentleman that we are putting more money into mental health services and taking more action than any previous Government. At the heart of the NHS long-term plan is the largest expansion of mental health services in a generation. I will ensure that the appropriate Minister writes to him with an update on the conversations with his trust about its local capital plan.
Henry Smith (Crawley) (Con)
What assessment has the Prime Minister made of the eurozone being in recession and the UK economy experiencing growth?
The Prime Minister
As we have seen recently, it is not just the Office for Budget Responsibility but the OECD, the Bank of England and the International Monetary Fund that have all upgraded the growth forecasts for the UK economy. While the Opposition may want to talk that down, it is the Conservatives that are delivering.
G7 Summit
Henry Smith Excerpts(1 year, 6 months ago)
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The Prime Minister
As I have said, the G7 allies are working in tandem to intensify diplomatic engagement with third-country partners to highlight potential sanction circumvention risks. We also, as I have said, are investing £50 million in a new economic deterrence initiative, which will back up our own sanctions implementation and enforcement.
Henry Smith (Crawley) (Con)
I commend my right hon. Friend the Prime Minister for leading discussions at the G7 in Hiroshima on countering and guarding against the national security threats that are coming from China. In that vein, will he consider blocking companies such as BGI that are harvesting genomic data—as they have done in the United States and in academia in Canada—from activities in this country?
The Prime Minister
Our new National Security and Investment Act 2021 gives us the powers to block hostile investment into sensitive sectors. My hon. Friend will know that we have used those powers to block Chinese investment in Newport Wafer Fab, for example. We obviously look at every transaction on a case-by-case basis, but we now have one of the most robust frameworks anywhere in the world for protecting our companies and our intellectual property from foreign interference and theft.
Tributes to Her Late Majesty the Queen
Henry Smith Excerpts(2 years, 2 months ago)
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Henry Smith (Crawley) (Con)
Thank you, Madam Deputy Speaker, for allowing me this opportunity to express respect, sorrow and thanks to Her late Majesty Queen Elizabeth II on behalf of my constituents in Crawley, myself and my family. Since we heard the news that we all feared on Thursday with her passing away, much has been said about how she had been a constant presence in our lives personally and nationally. Few people alive today had known any monarch but Her late Majesty.
On the Queen passing away, my thoughts went to the first time I ever saw her. I was born and spent my early formative years in the Epsom area of Surrey and, when I was a young child, my late mum took my brother and I up to the Derby at Epsom. Much has been said about Her late Majesty’s great love of horse-racing; she attended the Derby virtually every year of her reign. We positioned ourselves about half a mile down the road, where we knew her official car would be leaving after the race. I remember waving my Union Jack—I have had a passion for flags ever since as a vexillologist—and, as her car passed, she was wearing those vivid, bright colours that she always did so that people at public events could see her. I was amazed when she waved back.
More than three decades later, I had the distinct honour and privilege of officially greeting Her late Majesty the Queen when she visited Crawley. At the time, I was the leader of West Sussex County Council, and one of her duties that day was to open Thomas Bennett Community College: a school that had been rebuilt. With great nervousness and excitement, I met our monarch and, as she did for all functions and occasions, she carried out her duties in a way that put people at ease and allowed our whole community to celebrate.
Her late Majesty had visited my Crawley constituency on five previous occasions in an official capacity. First, in 1950, when she was the Princess Elizabeth, she came to open what is now one of the largest industrial estates in the country. Apparently, she had looked over the old tithe maps of where it was to be located and named it Manor Royal.
In 1958, as our sovereign, Her late Majesty came back to my constituency to officially open Gatwick airport: the world’s busiest single-runway airport and a great driver of the local economy. Her next visit was in 1969—the year I was born—when she came to officially open Holy Trinity school, which is soon to be rebuilt. Her next visit was in 1982, to lay the foundation stone of St Catherine’s Hospice. In 1988, she went back to Gatwick airport to open the north terminal.
We all feel that we have lost somebody to whom we have a personal connection, even though she was a mother not only to this United Kingdom, but to the Commonwealth, and was recognised and respected throughout the world. That was typified on 11 September 2001, when she spoke about grief being the price we pay for love after the attacks in the United States. That is so true.
With great respect and interest, I watched His Majesty’s address last night from Buckingham Palace. I am grateful for the message that the service that we had from the Queen will be continued in the reign of Charles III. We in this country are fortunate to have a constitutional monarchy, and long may that continue. May God rest the soul of Her late Majesty Queen Elizabeth II. May God give wisdom to His Majesty King Charles III. God save the King.
Oral Answers to Questions
Henry Smith Excerpts(2 years, 5 months ago)
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The Prime Minister
We cut fuel duty for everybody across the country by record sums. The right hon. Gentleman talks about pensioners; we are giving £850 more to every pensioner across the country. He talks about the cost of energy; everybody is going to get another £400 to help them with the costs of energy.
The blissful fact about the Liberal Democrats is that people do not actually know what their policies are. They are able to go around the country bamboozling the rural communities—not revealing that they are, in fact, in favour of massive new green taxes, which is what they want, and not revealing that they would like to go back, straightaway, into the common agricultural policy, with all the bureaucracy and all the costs that that entails. They do not say that on the doorstep.
Henry Smith (Crawley) (Con)
The Prime Minister
My hon. Friend is completely right. We encourage the use of suitable brownfield land, and our policy is brownfield first, everywhere and always.
Living with Covid-19
Henry Smith Excerpts(2 years, 9 months ago)
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The Prime Minister
The hon. Lady is absolutely right to mention the problem of long covid. We have invested £224 million in expanding NHS treatment of long covid and we are putting another £50 million into researching that syndrome.
Henry Smith (Crawley) (Con)
I very much welcome the Prime Minister’s statement today: a return to liberty, so we can further grow our economy and tackle other health conditions. Can he say a little more about what targeted support will be provided to those who are immunosuppressed and immune-compromised, such as those with blood cancer?
The Prime Minister
As I told the House, we have secured supplies of monoclonal antibodies in record numbers. We will also ensure that those who are immunosuppressed have access to testing to see whether they need the therapeutics.