British Steel: Negotiations

Holly Mumby-Croft Excerpts

Thursday 2nd February 2023 Commons Chamber

[Holly Mumby-Croft (Scunthorpe) (Con)]

(Urgent Question): To ask the Secretary of State for Business, Energy and Industrial Strategy if he will make a statement on negotiations between the Government and British Steel.

[The Minister for Industry and Investment Security (Ms Nusrat Ghani)]

First, let me begin by saying I understand that this must be a very concerning time for British Steel employees, following the discussions that took place between the company and union representatives yesterday. Of course, these are commercial decisions taken privately by the firm, and conversations with the unions are private.

We all recognise that Putin’s illegal invasion of Ukraine has created challenging global trading conditions for steel, but it is very disappointing that British Steel has chosen to take this step for its employees while negotiations with the Government are ongoing. The Business Secretary and I have always been clear that the success of the UK steel industry is a priority. We have worked intensively with British Steel on support to help safeguard and unlock shareholder investment and will continue to do so. Steel is important for our economy, supporting local jobs and economic growth. We are committed to securing a sustainable and competitive future for the steel sector. I must put on record my thanks to my hon. Friend the Member for Scunthorpe (Holly Mumby-Croft) for all the insight and advice she provides to me as the Minister.

We have already taken action to protect the steel industry from unfair trade and reduce the burden of energy costs, including £800 million in relief for electricity costs since 2013. That is on top of a range of other support funds worth £1.5 billion to support efforts to cut emissions and become more energy efficient across the sector. It is firmly in the interests of the sector that we continue our engagement. We want British steel production to continue in the United Kingdom, to protect our steel sovereignty as a nation and build a stable, decarbonised and competitive industry. It is in the interests of employees, their communities and all areas of the UK that benefit from the UK steel supply chain, and I encourage the company to continue discussions with us to reach a solution.

I can confirm that the Government have put forward a generous package of support, which we believe, combined with shareholder action, would put British Steel on a sustainable and decarbonised footing. My officials are helping British Steel to understand that package in more depth, and I am hopeful that together we will find a solution that protects jobs while setting British Steel up for success. Obviously, decisions that the company takes are its commercial decisions, but I will continue to work with colleagues across Government to ensure that a strong package of support is available, including Jobcentre Plus and the rapid response service, if needed. Members across the House should be in no doubt of the Government’s determination to continue support for the UK steel industry, and I urge British Steel to continue discussions to help us secure its future in the UK.

[Holly Mumby-Croft]

As my hon. Friend has set out, in the midst of these negotiations with Government, involving hundreds of millions of pounds of further support on top of what she has listed, Jingye sat down yesterday with the unions and talked about laying off 800 British Steel workers. I do not want to break down my communications with British Steel, because I will fight for these jobs and continue to talk to it. Accordingly, I will temper my language today, but I want to be clear that I cannot and will not defend this decision, which is unacceptable in every possible way for my constituents. This is not a way to behave. It sends entirely the wrong message and breaches the spirit of negotiations, which I believe are the result of a level of Government focus on steel and its wider issues, including energy and carbon costs, that are genuinely encouraging for the industry.

Hundreds of families in Scunthorpe are worried sick, wondering if and when they will lose their jobs. I want to add that I am very capable of challenging the Government if I do not think they are going far enough on steel, but that is not what is happening here, and I hold the company entirely responsible for how it decided to act yesterday.

I ask the Minister to do three things, please. First, will she challenge the company on whether it is actually credible to run its operations with 800 fewer people? I have been told that it would not be possible to safely run the blast furnaces if that many team members were lost. Secondly, will she express in the strongest terms that this is not a way to do business and ask the company to immediately reconsider these potential redundancies? It is in its gift to do that, and if it publicly halted these redundancies, that would send a welcome and strong message to the community of which it is a part.

Thirdly, will the Minister reiterate this Government’s support for the thousands of world-class steelmakers in my patch, who are decent, hard-working, skilled members of our community? Will she tell them again today that we value their skills, we understand the importance of steel, we understand that we need it for every single thing we do in this country—from defence to growth—and that we are determined to do whatever it takes to make sure we do not become the only country in the G20 that cannot make its own steel?

[Ms Ghani]

Our lady of steel basically sums up the whole argument in her two minutes, and I do not disagree with much of what she has said. The decision to hold this meeting is a commercial one, but I agree with my hon. Friend that it is a peculiar way to do business, while we are in the middle of negotiations that will involve substantial amounts of Government support, which I will go on to describe.

I put on record, agreeing with my hon. Friend, that we make the finest steel in the world, and the steelworkers in the UK are the most skilled in the world. British Steel manufacturing is vital, and it cuts across everything we do, as well as issues around supply chain resilience brought on by Russia’s illegal invasion of Ukraine and issues around Chinese steel dumping. Steel is vital for our national security, just as it is for every sector involved in manufacturing and production. The Government are absolutely committed to the steel industry, and I will go on to describe that.

I make it clear that any decision that Jingye makes is a commercial decision, but it is our duty to make sure that if support is needed, we make it available, so our thoughts are first and foremost with employees and their families. We will work across Whitehall, whether that is standing up the Department for Work and Pensions rapid response service to support employees, working with the MoneyHelper scheme or working with the Department for Education’s National Careers Service.

I will spend a moment to explain the level of support that British Steel has already had. We have offered £120 million in grant funding through the exceptional regional growth fund to ensure that it can continue to work in the area. We have offered UK export finance to help it with new export contracts. In June, we extended UK Steel’s safeguards to protect domestic production. It has benefited from Government electricity price compensation for energy-intensive industries and the energy relief scheme for business. As I have mentioned, £800 million has been provided across the sector since 2013. It can also apply for help with energy efficiency, decarbonisation, low-carbon infrastructure, and research and development, where more than £1 billion is available in competitive funding for industry. The support is strategic and long term.

My hon. Friend the Member for Scunthorpe raised three points. She asked me to challenge the company on the number of employees it needs to continue functioning in a safe and stable way. Of course, we will drive that message home, and we will make it clear in the strongest terms that this is not the way to do business. She knows that I was on the Business, Energy and Industrial Strategy Committee for a few years, and we wrote a report on steel. Perhaps my language then was a little freer than I can be at the Dispatch Box. It is peculiar for this conversation to take place while we are in the middle of good negotiations, since the negotiations involve substantial taxpayer money. Obviously, these are sensitive negotiations, but I do not think that it is inappropriate for me to say that the Government want some assurances and guarantees linked to jobs. The message I want to send today is that we will continue to be available to ensure that discussions and negotiations continue.

I listed the huge support that the Government have already put in place for steel. If I may, I would like to share some of the other support available for the region in and around Scunthorpe. More than £20 million was given to Scunthorpe through the towns fund, and more than £10 million through the future high streets fund. More than £25 million in seed capital was given towards the Humber freeport, and more than £5 million to north Lincolnshire from the UK shared prosperity fund. I must put on record my thanks to my hon. Friend the Member for Scunthorpe for being such a fantastic campaigner and for securing that funding for her constituency.

These are ongoing, sensitive negotiations. I hope everybody across the House, regardless of what they think of the Government’s record, will send the shared message that negotiations and discussions should continue. It is appropriate that within those discussions we should expect some assurances on job security.

Steel Industry: Contribution to the UK Economy

Holly Mumby-Croft Excerpts

Wednesday 25th January 2023 Westminster Hall

[Holly Mumby-Croft (Scunthorpe) (Con)]

It is a pleasure to serve under your chairmanship, Mr Pritchard. I thank the hon. Member for Newport East (Jessica Morden) for securing the debate. I know from our work together on the APPG for steel and metal related industries that we agree on many things and have the interests of the steel industry jointly at heart. I also thank my hon. Friend the Minister for the level of focus that the steel industry is receiving at the moment. I am heartened by that and want to put my thanks on the record.

Steel is something that I never tire of mentioning in Parliament. My home town of Scunthorpe has one of the biggest steelworks in the country. I care about the local jobs because I understand the impact that it would have on our local community and on individuals and families were those jobs to be lost, but we can never say enough times the impact that it would also have on us as a nation and our position in the world were we ever to lose our ability to make our own steel.

Not only does the steelworks provide thousands of jobs that pay roughly 45% more than the average job in Yorkshire and Humberside, but its impact ripples throughout our entire local economy, supporting an ecosystem of businesses that sustain countless livelihoods. I have been told that it supports 20,000 jobs in our area, and I believe that to be the case. People who work in the steelworks in Scunthorpe are people I went to school with. They are people whose children went to school with my daughter. They are my neighbours. They are members of my family—my granddad made his living and raised his family through his work at the steelworks. It is a source of great pride to him and to many people in Scunthorpe and the surrounding area that the work our town has put in has helped to build this country.

We heard figures from the hon. Member for Newport East on the value of the output of steelmakers here in Britain, but it is almost impossible to truly quantify the impact that steel has throughout the wider economy and every sector and, just as importantly, the loss we would face were we not able to produce our own steel.

[Jack Brereton (Stoke-on-Trent South) (Con)]

I congratulate the hon. Member for Newport East (Jessica Morden) on securing this debate, which is very important for not just steel but ceramics. Refractory ceramics are vital for the steelmaking industry, and particularly energy-intensive industries such as steel and ceramics need additional support to transition and invest in energy efficiency measures. Does my hon. Friend agree that we need additional support from the Government that is easier to access so that these industries can invest in energy efficiency measures?

[Holly Mumby-Croft]

My hon. Friend is absolutely right. He and I have worked together on many of the issues that affect energy-intensive industries. Ceramics play a crucial role in the steel industry, lining the blast furnaces that we use to make steel and, of course, we like to have a cup of tea in a ceramic mug as well.

I cannot say enough times how important it is that we never, ever become the only country in the G20 that is not able to make its own steel. That would leave us at the mercy of steel producers around the world, who would be in full knowledge that we were not able to make our own steel, with the prices and challenges that would come with that. I hope the Minister agrees that steel truly is a vital strategic industry. Nobody can go a single day in their lives, from the moment they get up to the moment they go to bed, without needing to use steel.

A dependable supply of high-quality steel—that is a crucial point: in this country we make some of the finest steel money can buy anywhere in the world—will underpin our every endeavour as we tackle the problems of the 21st century and the issues that we grapple with in this place. It is vital for everything from growth to defence, and Russia’s invasion of Ukraine has served only to highlight the challenges and the importance of that. I truly believe that the public have a fantastic understanding of how important this is and instinctively know it is crucial that we are always able to make our own steel.

I have seen the support in recent years, including the £800 million of energy support and the two occasions when the Government took the brave step of extending the steel safeguards. That was a challenging time for us, so I congratulate the Government on doing that, because it was really important. Had we not done that, I am not sure we would be here now having this conversation—it was absolutely right. In Scunthorpe, we remember how the Government paid workers’ wages in 2019 and into early 2020 when the buy-out happened.

We have all seen the press reports about British Steel and Tata negotiating with the Government. I know that is a live negotiation and we cannot talk about it, but I will do everything I can, as I know other Members will, to help and assist all parties involved to reach a good outcome and secure the future of steelmaking in Scunthorpe. My own view is that, should a deal be reached, we must look at this as a pivotal moment. We must get a deal done and then the next day wake up and start straight away with the steps we need to take to allow steel to thrive into the future. We must immediately start discussions at pace about carbon border adjustments, so that we do not find ourselves falling behind the EU. We must look at the emissions trading scheme and the perverse incentive that it is possible to create whereby we can see loss-making production—carbon-producing production—incentivised by a scheme initially designed to prevent excess carbon production. We must also address all the issues relating to energy costs.

I urge the Government to go as far and as fast as they can on those issues, and to do everything they can to give the industry confidence that ours really is the Government that will put in place the measures that will secure the future of the steel industry. I believe they are, and I urge the Government to give the steel industry that confidence.

--- Later in debate ---

[Stephen Crabb]

I accept that point. I remember bringing representatives of Celsa Steel from the constituency of the hon. Member for Cardiff South and Penarth (Stephen Doughty) to meet various Ministers at different points during that period of government. Celsa was incredibly open about opening its books and showing costs to Ministers. The point that Celsa made, when we put in place the support scheme for energy-intensive users, was about the disparity with competitor countries. That is a valid point that the Government should address. We are in an intensely competitive steel-production environment.

I come back to my point. Some Opposition Members hope to be in Government in a couple of years’ time as Ministers. They will have a string of companies knocking on their doors continuously asking for support and help. The trade-offs they will need to make, with regard to responsibility to taxpayers and the public finances, will be difficult. Difficult decisions need to be made. In the case of steel, at times the global challenges have felt so big that the amount of support being sought was almost unlimited. Ministers need to make difficult decisions, but I accept the point made by the hon. Member for Newport East that we need to look at the disparity with international competitors.

[Holly Mumby-Croft]

My right hon. Friend is making an interesting speech. He reflected on previous Governments’ approach to steel. He knows, as we all do, that under the last Labour Government steel jobs and steel production halved. The point he makes about fairness is an important one, and I thank him for making it.

[Stephen Crabb]

I thank my hon. Friend for that contribution. My other argument is about looking forward. I reiterate my remarks about the importance of new green technologies and green industries for the UK economy in the years and decades ahead. British steel has a crucial role to play in that, but that will not happen by accident; it will require deliberate choices on the part of Ministers. We will not capture the full economic value of these new industries by accident. To ensure that we maximise local domestic content and supply chains will require a plan and deliberate choices by Ministers. To that end, I want to talk about the bid by Port Talbot, one of the UK’s most important steelmaking communities.

There is a joint bid by Port Talbot and Milford Haven in my constituency for a freeport—a Celtic freeport that will be used as a platform to help launch a new industry of floating offshore wind. We hope that Welsh Steel will play a key part in the supply chain. I do not expect the Minister to comment on a live bidding process, but I wanted to put that on record. If the hon. Member for Aberavon (Stephen Kinnock) were here, I know he would make the same point. That is a very exciting freeport proposal, with real projects and economics behind it, and I hope the Government will look favourably on it.

Oral Answers to Questions

Holly Mumby-Croft Excerpts

Tuesday 17th January 2023 Commons Chamber

[Kevin Hollinrake]

The Royal Mail is facing a difficult year—there is no doubt about it. One reason quoted in the update from the Regulatory News Service—this is a regulator-issued news bulletin, so it has to be accurate—on why the company has gone from a profit to a loss was the industrial action by the Communication Workers Union, which is putting tremendous strain on the Royal Mail and its customers, many of whom are going elsewhere, and indeed on the post office network. Will the hon. Lady condemn the fact that this is causing extra difficulties for the Royal Mail and some of these financial problems?

[Holly Mumby-Croft (Scunthorpe) (Con)]

T1. If he will make a statement on his departmental responsibilities.

[The Secretary of State for Business, Energy and Industrial Strategy (Grant Shapps)]

On Thursday, I will be flying our flag on the global stage for the CBI in Davos, making sure the world knows that Britain is the place to invest. At the World Economic Forum, I will be setting out a bold vision to scale up Britain, backing British business, empowering our entrepreneurs and driving disruption.

[Holly Mumby-Croft]

Will my right hon. Friend give further detail on whether the Government think that the non-domestic energy support package will help to provide a level playing field for British steelmakers?

[Grant Shapps]

My hon. Friend, who has done more than many others to fight for and support steel in her constituency, is right to highlight the energy bills discount scheme, but other schemes, including the one I was talking about, the energy-intensive industries scheme, where we have the consultation to take the level up to 100%, may in the end be much more meaningful. I want to assure her, Opposition Members and the whole House that the Government are very focused on this issue.

Britain’s Industrial Future

Holly Mumby-Croft Excerpts

Tuesday 15th November 2022 Commons Chamber

[Bill Esterson]

Unfortunately, the hon. Gentleman does not understand that 12 years of low growth, low investment and low productivity mean that places like Stoke-on-Trent have been hit very badly by this Conservative Government.

Where has 12 years of Conservative Government left British industry, not least in places such as Stoke-on-Trent? Manufacturing has seen the worst output over three months since the 1980s. Anyone who genuinely wants to turn around the UK’s poor economic performance cannot discount the role of industry in our economic growth. It is not a question of being either a service-led or a manufacturing-led economy. Successful economies are a combination, and successful industries are a combination, too. Good manufacturing depends on the services that support production.

Labour knows the value and understands the crucial role of our industrial base in delivering economic growth, which is why we have outlined our industrial strategy to give businesses certainty that they can invest alongside Government to safeguard our world-class industries. Economic strength needs partnership between Government and market, and between business and worker. Our new industrial strategy has partnership at its core, because partnership is how we ensure strong, secure growth and a fairer, greener future.

Our plans for a national wealth fund to invest in our great industries will play a crucial role, alongside businesses and trade unions, in delivering the certainty that investors and workers need. Labour’s plan will bring businesses, workers and trade unions together to safeguard the future of an industry that is the pride of communities across the country. I am talking, of course, about steel.

What we need is not crunch crisis talks and random nationalisations but investment in our great industries, with a real plan to secure our steelmaking future through a partnership to invest in the technology that our steelmakers need to export green steel around the world. But for 12 years the Conservatives have failed to back Britain’s steel industry. The Government have let the industry decline, with jobs offshored and communities damaged. While Governments around the world have been committed to their domestic industries, with long-term strategic investment in green steel production, the Conservatives have failed to invest in the transition, have attempted to weaken safeguards that protected our steelmakers from being undercut by cheap steel imports and have splashed tens of millions of pounds on imported steel to build British schools and hospitals.

Labour will make different choices. We will put UK steel at the heart of our wider industrial policy, building British wind turbines and railways, and investing in carbon capture and storage, and hydrogen infrastructure. I wrote to the Secretary of State two weeks ago about the concerns of the steel industry in this country. As he has not replied to my letter, perhaps the Minister winding up this debate will tell us what action the Government are taking to support this core industry.

[Holly Mumby-Croft (Scunthorpe) (Con)]

Would a Labour Government be looking to support the steel industry in the same way as Labour did between 1997 and 2010: by halving the number of workers in the industry?

[Bill Esterson]

The hon. Lady should perhaps take more care about how the Chinese are threatening to pull the plug on steel production in her constituency right now.

--- Later in debate ---

[Bill Esterson]

My hon. Friend is absolutely right about that, and I suspect that even if Ministers will not admit it publicly, they would say so privately too. I mentioned that I wrote to the Secretary of State two weeks ago. I am disappointed that I have not had an answer sooner, given the scale of the challenge and the emergency facing so many parts of the steel industry.

[Holly Mumby-Croft]

The hon. Gentleman mentions the letter that he wrote two weeks ago. I am grateful to have that support even if it is only a letter and very late in the day. Can he set out in a little more detail what else he has done? In particular, can he say what he did to help with the two extensions of the safeguard, because I do not remember discussing that with him at the time?

[Bill Esterson]

I would have hoped that, as a Conservative MP, the hon. Lady would have been talking to her own colleagues. I hope that her ministerial colleague will have heard what she said, and that she will join me in calling on him to respond to the requests of the steel industry. [Interruption.] The hon. Member for Stoke-on-Trent North (Jonathan Gullis) can sit there and heckle all day—he does quite a lot of that—but the honest truth is that we do need cross-party working to deliver for steelworkers. I am happy to support the call of the hon. Lady, as I am the calls of my colleagues who have spoken in this debate.

On the automotive sector, it must make sense for the Government to support workers at one of the most productive car plants in Europe. That is why the Government should be working with BMW at Cowley to give it assurances that they support electric car production in the UK. They should be working with the car industry to support the transition to electric vehicles, not sitting on the sidelines while our great automotive sector falls behind our European competitors. While we have one gigafactory in operation, Germany has five, with a further four in construction. France and Italy are set to have twice as many jobs in battery manufacturing as us by 2030. The precarious future of Britishvolt is incredibly worrying for the local economy, risking up to 8,000 jobs, but it also further jeopardises our gigafactory capacity as a country. As part of our plans for a national wealth fund, Labour will part-finance the creation of three new additional gigafactories by 2025, with a target of eight by 2030.

Turning to shipbuilding, a successful strategy means making and buying more ships here in Britain, such as the Fleet Solid Support Ships, rather than seeing lucrative defence contracts built abroad. It is, of course, a very important way of supporting our steel industry. Investing in sovereign defence capability is a matter of national security as well as being good for jobs, 6,000 of which are at the UK’s high quality shipyards from the Fleet Solid Support Ship contract alone.

A hallmark of each iteration of this Conservative Government has been to act in the heat of the moment and lurch from crisis to crisis. The revolving door of Ministers, the seemingly endless soap opera, the unedifying sight of Conservative MPs eating bugs in the jungle mask a much deeper problem. The Conservatives are unable to offer British industry the bedrock on which it needs to grow. They do not have an industrial strategy that can last the term of a Minister let alone the turn of the century. Whether that is ideological opposition—the mistaken belief that Government should get out of the way—or pure incompetence, it is clear that the Conservatives are failing British industry.

--- Later in debate ---

[Holly Mumby-Croft (Scunthorpe) (Con)]

It will come as no surprise that I want to concentrate on steel, not just because it is an important employer in my constituency, but because I recognise, like many hon. Members here today, that it is a truly crucial foundation industry. From the wire in our tyres to the rails under our trains, we rely on steel in every element of our life; from the skyscrapers around us to the knives and forks we eat our meals with, it has a huge impact on us all. That is why countries all around the world find ways to support and protect their steel industries, why a free market for steel does not actually exist, and why we must always do everything we can to ensure that our nation can make its own steel.

I am grateful for the opportunity to speak in this debate. I agree with parts of the Opposition’s motion. They are right that steelworks provide high-quality, highly paid, skilled jobs. I also agree that the steel industry is crucial to meeting net zero targets: steel is irreplaceable, and if we are to have any realistic chance of meeting our goals, we need to see it not as part of the problem but as a way to find solutions. However, that is probably as far as my agreement goes.

The motion does not recognise the work that the Government have done to support the steel industry. In the past three years alone, I have seen with my own eyes how Conservative Governments have been paying workers’ wages in Scunthorpe. They have twice taken the step of extending the steel safeguards. They have helped with energy costs: since 2013, Conservative Governments have provided more than £800 million in support to the steel industry with energy costs alone. I say that not as a Tory MP, but as somebody born in Scunthorpe who comes from a steel family and understands the importance of the industry to our area.

Anyone who has stood inside an industrial cathedral like our steelworks in Scunthorpe, who has felt the heat on their face and who has felt the ground move as the metal is tapped will feel as proud as I do of the contribution that the industry makes to our nation. Of course there are many challenges, from the frankly crackers emissions trading scheme, which risks incentivising companies’ excess production to protect future carbon allocations, to the price of energy, which under Governments of both parties has historically been higher in this country than in the EU. That is unfair, and it makes it difficult for our world-class steelmakers to hold their own.

On our task of decarbonising steel, I agree with many of the points that my right hon. Friend the Member for Wokingham (John Redwood) raised. I want to be clear that we must not fall into the trap of lowering our own emissions simply by shipping them abroad. Our usage of steel will remain, as it should and must, and we must not create an environment in which we damage our capacity or close down our steelworks and end up importing steel. Our climate targets are important, but we all live in one world. I am not interested in any version of net zero that enhances our credentials by offshoring the issues.

We need to take steelworks with us on this journey. I hope the Government will be very firm. As a nation we need to use steel, and we will continue to need to use it. Hammering our own industry and adding the emissions of shipping in order to improve our face-value environmental credentials would be unconscionable and completely pointless.

I welcome the opportunity to raise these challenges—I never like to miss an opportunity to talk about steel—and I know that the Government are not blind to them, because I discuss them regularly with the Government. Many people, locally and in the House, will know that British Steel is also having talks with the Government, and I am very pleased that the Government are engaged in those talks. We need to understand the best way forward, and I hope the Minister will agree with me that we need to find a solution and protect our steel industry.

--- Later in debate ---

[Rachel Hopkins (Luton South) (Lab)]

This Conservative Government are incapable of fixing the structural problems at the heart of our economy. Just look at the past 12 years, when we had six different growth plans. In the past six years, we have had five Prime Ministers and, just this year, we have had four Chancellors. Where is the stability? Where is the consistent plan? Instead, there is a track record of wasted opportunities and mistakes. There has been chaos under the Conservatives, who crashed the economy.

Our growth rate since 2010 has been only 1.4%—lower than the OECD average and behind the USA, Canada and Germany. The country faces the lowest growth in the OECD over the next two years, behind countries including Italy and Greece. The Tories have dismantled our economy by entrenching low growth, low productivity and declining living standards. Working people are expected to pay the price of Tory failure.

For too long, industrial policy in the UK has been plagued by short-termism and its vulnerability to political changes. The British public need a fresh start and part of that is reaching a collaborative settlement with the European Union. Many of us voted to leave the European Union to see a strong, democratic sovereign state working in the interests of the British public: a state that works with business to grow the economy, create good jobs and deliver public infrastructure and projects. Essential to that is an ambitious, Government-driven industrial strategy. We need to rebuild British industry and deliver growth that makes all parts of our country better off.

A recent Rebuild Britain article stated that our country needs

“greater self-reliance with jobs, skills, industries and technologies rooted in local areas serving the needs of localities and the wider nation”,

as my hon. Friend the Member for St Helens South and Whiston (Ms Rimmer) outlined so well.

A modern industrial strategy requires building a partnership between the public and private sectors to meet the immense challenges we face. Let us take the automotive industry, which employs 780,000 people in our country and accounts for 10% of total UK exports. Car and van manufacturing can be found in every region of the UK, from the north-east to the east of England, and particularly in my constituency of Luton South, which is incredibly proud of its historical ties to the industry through the local Vauxhall plant.

Despite the Minister’s rhetoric, with the fast approaching 2030 deadline prohibiting the sale of new petrol and diesel cars, unless Britain secures domestic gigafactories for manufacturing batteries, manufacturers will move elsewhere to build their future electric models. Building gigafactories would contribute to meeting net zero, distributing growth across the country and helping to expand automotive exports. It is a win-win-win. However, I heard little about gigafactories from the Minister. Government inaction already means that the UK is far behind other European countries.

The UK has one gigafactory in operation, whereas Germany has five and a further four in construction, not to mention France and Italy, which are set to have twice as many battery manufacturing jobs as us by 2030. Manufacturers such as Vauxhall in Luton need certainty. They need a Government prepared to shape a competitive environment. A consistent policy framework, which businesses can trust, will encourage increased investment over the long term.

As part of our green prosperity plan’s national wealth fund, a Labour Government would part-finance the creation of three new, additional gigafactories by 2025, and we have a target of eight by 2030. Our plan delivers the certainty needed for automotive manufacturers to upscale their operations, in the knowledge that the Government have made a long-term commitment to the industry.

For the automotive sector and many others, we must safeguard the UK’s domestic steel production. While Governments around the world are committing to their domestic industries with long-term strategic investment in green steel production, the Conservatives have failed to invest in the transition, instead attempting to weaken safeguards that protected our steelmakers from being undercut by cheap steel imports and splashing tens of millions on imported steel to build British schools and hospitals.

[Holly Mumby-Croft]

Will the hon. Lady give way?

[Rachel Hopkins]

No; I am sorry.

Leaving the European Union enables us to increase strategic investment in our key domestic industries; it should not mean stripping back regulations and leaving them exposed to the global market. Labour understands that, and in government we will invest up to £3 billion over the coming decade to green the steel industry. Labour will end the short-termism through our green prosperity plan and by introducing the industrial strategy council, placed on a statutory footing. Labour will work in partnership with business to tackle some of society’s biggest challenges. We are ready to rebuild the country fit for a fairer, greener future. It is time for a fresh start.

Energy Prices: Support for Business

Holly Mumby-Croft Excerpts

Thursday 22nd September 2022 Commons Chamber

[Mr Rees-Mogg]

What was it that P.G. Wodehouse said about it not being too difficult to discern the difference between a Scotsman with a grievance and a ray of sunshine? So often SNP Members come here on Thursday mornings with a grievance. It is rather like old times, is it not, Mr Speaker, when I would have an hour on Thursday mornings to discourse with the Scottish nationalists about their general grumpiness. I see that that is one of the constants of British politics. The hon. Gentleman referred to rubbish in the streets of Westminster; let me point out to him that as soon as an administration turns from Conservative to socialist, the rubbish piles up in the streets—as I think it has also been doing under the SNP in Edinburgh.

This scheme is fair to taxpayers and will provide support across the country. As I said, there will be a review in three months to ensure that that support goes to the people who need it most.

[Holly Mumby-Croft (Scunthorpe) (Con)]

I thank my right hon. Friend for the discussions that he and I have already had about steel. He clearly understands the industry extremely well, and I am very grateful to him. Can he confirm that energy-intensive industries will be at the forefront of the Government’s mind when we reach that point of review?

[Mr Rees-Mogg]

Yes, indeed. We are having meetings with British Steel, which will be a beneficiary of the scheme. It is important that we do not burden business in this country in a way in which it is not burdened overseas: we must support great British businesses.

Oral Answers to Questions

Holly Mumby-Croft Excerpts

Tuesday 7th June 2022 Commons Chamber

[George Freeman]

The hon. Lady makes an important point about social enterprises being mainstreamed in the business community. She may have seen the recent report by the all-party parliamentary group for social enterprise, of which I have long been a supporter, that argued that we should mainstream social enterprise in the BEIS policy framework, which is an interesting proposal. We have just announced the biggest increase in research and development and innovation funding—an increase of £25 billion over the next three years. I have asked UK Research and Innovation to focus on that incubation hub infrastructure around the country, so that we can continue to support the university and small business networks that create the opportunities for tomorrow.

[Holly Mumby-Croft (Scunthorpe) (Con)]

13. What steps he is taking to support manufacturers.

[Kate Griffiths (Burton) (Con)]

16. What steps he is taking to support the manufacturing sector.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Lee Rowley)]

Manufacturing —from the heaviest of our industries to our most modern fourth industrial revolution factory—is the bedrock of our country’s resilience, and we are committed to supporting it. This year, we will launch a new manufacturing investment prospectus to promote the UK as the destination of choice for investment, and to signpost the support available to businesses.

[Holly Mumby-Croft]

Decarbonisation and the production of green steel represent a huge opportunity for steelmakers such as British Steel in Scunthorpe. Steelmakers are raring to go, but they need further policy guidance before they invest. Can my hon. Friend reassure me that he will continue to work closely, in the excellent way that he has done, with steelmakers to ensure that they have the guidance they need to reach those goals?

[Lee Rowley]

I can absolutely reassure my hon. Friend that we want to continue to work with British Steel, and with her—she is a champion for Scunthorpe and the surrounding communities—to ensure that it has a strong future, and to plot a pathway to treading more lightly on the earth.

Oral Answers to Questions

Holly Mumby-Croft Excerpts

Tuesday 29th March 2022 Commons Chamber

[Paul Scully]

We are looking at a range of methods of reforming Companies House, including unscrupulous behaviour by directors. It will be the biggest upheaval of companies law for the last 150 years, and we will legislate for new powers in the economic crime Bill when parliamentary time allows.

[Holly Mumby-Croft (Scunthorpe) (Con)]

My right hon. Friend will know that there is a distinct difference between the current energy price spikes and the long-standing unfairness that UK steel makers face when it comes to the charges and levies they pay on their energy costs. Does he agree that, when the energy strategy that the Prime Minister promised comes out, it must address both these distinct and separate issues?

Support for New Adoptive Parents

Holly Mumby-Croft Excerpts

Monday 21st March 2022 Westminster Hall

[Holly Mumby-Croft (Scunthorpe) (Con)]

It is a pleasure to serve under your chairmanship, Ms Ghani. I thank my hon. Friend the Member for Carshalton and Wallington (Elliot Colburn) for opening the debate. He made a cracking speech, and I agree with pretty much everything he said. I join him in thanking the Petitions Committee for its work on this issue and, of course, I thank the families who have contributed to this discussion and the petition, as their work is incredibly important.

Adoption is very close to my heart and, like many people across this country, my own family understands it well. Whether or not adoption is part of our family, I think we all have an instinctive understanding of the value of adoption to our society. Before this debate, I was contacted on this incredibly important issue by many people in my Scunthorpe constituency—some who have adopted children, and some who have not. I thank all those who took the time to raise it with me and to share their experiences and views. I have constituents sitting in the Public Gallery today, and I thank them for taking the time.

I was surprised to learn that self-employed parents are not able to access statutory adoption pay. We all know, as do all the petitioners, that employed adoptive parents are able to access adoption leave. This is a fantastic system that provides the same access and rights as maternity leave and puts adoption on exactly the same footing as other ways of building a family. That is exactly as it should be, and it is right that the Government support parents who adopt.

The benefits of taking adoption leave are huge. It gives time for a new family to settle in and bond, as we have heard today. Especially for new-borns, the developmental benefits of the family being able to take that time off are invaluable.

I was shocked when I started to look into this issue after it was brought to my attention, because it seemed like the most obvious thing in the world. Why would self-employed people not be able to access statutory adoption pay? The benefits to new families that I have just described are reason enough to extend statutory adoption pay, as the petitioners have asked. I support them in their desire to see statutory adoption pay extended. Beyond that, we should be helping prospective parents to adopt. We should be making it as easy as possible for the right people to do so, regardless of their financial situation.

As my hon. Friend the Member for Carshalton and Wallington mentioned, 1,870 children in England are waiting to meet their family, and more than half have been waiting for longer than 18 months. We have a shortage of adoptive parents. Not having access to statutory adoption pay is a potential barrier to self-employed future parents. Without it, people face a considerable time away from work. If they are the only person driving their business, this is a massive financial hit that not all families are able to absorb on their own. I worry that any self-employed person who wants to adopt may not be able to do so, simply because they cannot afford to take time away from work. If that applies to just one person, it is one too many.

I am not under the illusion that lifting this barrier will mean that every single child who needs a family will get one. However, making adoption a viable option for more self-employed people will help some of the children who are waiting to find their family, which should be our priority. This ultimately boils down to fairness; we should provide the exact same support to all adoptive parents, regardless of their employment status.

I know, from raising it with the Government, that this situation is not intentional. The system was not actively designed to favour one set of parents over another. It is an anomaly, and I welcome the commitment to review this situation. Similarly, I know that some local authorities, as we have heard, are able to make discretionary payments to support adoptive parents. We have a very good local authority in North Lincolnshire Council, but parents should be sure of getting the same support, regardless of whether they live in Scunthorpe or Southport.

I want to highlight an incredibly important issue that we must keep in mind, because many families are not publicly visible and are not able to fight on this issue. We understand the reasons for that difficulty, which makes it even more important that we do all we can to give a voice to those who, through no fault of their own, are not able to shout as loudly as they would like for their families. I spoke to a woman in my constituency just a couple of weeks ago—the mum to a gorgeous little boy—and she made that point to me. I am mindful of her words as I speak today.

Support that is provided to one parent must be made available to another; there should be no anomaly because of how the person became a parent. In the reply I received from the Government, I was told they are fully aware of the issue and are considering what options are available for equalising rights and entitlements given to adoptive parents, and I am very encouraged by that.

I hope the Minister will commit to looking again at this issue and to considering how we can extend statutory adoption pay to all eligible families who adopt a child, and show that the Government stand behind families and are committed to helping children who have sometimes had a very difficult start in life. I hope the Minister will strongly consider the requests in the petition, the strength of feeling on the subject and the support for it that I believe will be forthcoming in all our communities.

Oral Answers to Questions

Holly Mumby-Croft Excerpts

Tuesday 11th January 2022 Commons Chamber

[Lee Rowley]

As the hon. Lady will know, because we have talked about it in other debates, the Government continue to look at options on this. We have very regular engagement and interaction with the steel industry, including the Steel Council, and other meetings, including ones just in the last few days. It is important to note the extensive support and help that has been given to energy-intensive industries, including the steel sector, since 2013 and beyond.

[Holly Mumby-Croft (Scunthorpe) (Con)]

I thank my hon. Friend for work that he has done for steel. He will know that the Prime Minister himself has stood in this Chamber and spoken about the unfair historical energy costs that steel industries have faced in this country. What conversations need to take place between BEIS, the Treasury and No. 10 to bring forward a solution so that my world-class steelmakers can get on a fair footing?

[Lee Rowley]

My hon. Friend is an absolute champion for her constituents in Scunthorpe and for the continuing success of the steel industry in that area. We continue to work very closely with our colleagues across Government to determine how we can provide support and look at options around the temporary issues that have been caused in the past year or so and then the longer-term issues. I would be happy to talk to her further.

Energy-intensive Industries

Holly Mumby-Croft Excerpts

Wednesday 24th November 2021 Westminster Hall

[Holly Mumby-Croft (Scunthorpe) (Con)]

It is a pleasure to serve under your chairmanship on this debate, Ms Nokes. I also thank my hon. Friend the Member for Stoke-on-Trent South (Jack Brereton) for securing the debate. I know he is as passionate about the ceramics industry as I am about the steel industry.

I want to lay my cards on the table and make three clear points. First, steel uses a lot of energy; we understand that. That means we are on the frontline of the energy price rises. Secondly, we will never not need steel. I am sorry to anyone who has heard me say this a hundred times already, but no one in this country can go a single day without steel. We need it for everything we do, from infrastructure to defence and from healthcare to the wire in the tyres of my trusty old Škoda parked underneath Parliament. Thirdly, of course we must find ways to make steel that consider the environment, but we must never completely rely on other countries to make steel for us. We will have no control over the quality or the environmental issues that come with that, and it would be foolish and immoral to ship steel from other countries.

Between 5 o’clock and 6 o’clock last Monday, steelmakers in Scunthorpe paid an eye-watering £2,080 for a megawatt-hour of electricity. The average cost of electricity prices in 2020 was £35 per megawatt-hour. That volatility is crippling our daily operations. Site managers have to shut down or delay key processes to cope with the spikes in energy prices. It is unfortunate and I know this is a collective challenge for energy-intensive industries, but the cost of energy is now higher than the cost of labour and this is not merely a market blip that will come and go.

I recognise that this is in great part caused by global circumstances beyond our direct control. I believe in a free market, but when it comes to steel a free market does not really exist. Steel is made in every G7 country and, quite bluntly, one way or another those countries have consistently found creative measures to support their steelworks because they want to maintain a steel-making capacity. We were already at a disadvantage when the energy price spikes hit us and that has highlighted the extent of other nations’ support for their energy- intensive industries.

I also want to directly challenge anyone who has the incorrect view that steelworks constantly need bailing out. They do not; they need a level playing field, but it could not be any more firmly the other way round. Steelmakers in Scunthorpe are survivors and thanks to our local talent, we have kept our heads above water for decades. We need to be on a fair footing with our European competitors and we will thrive. The Treasury has said it wants

“an attractive and internationally recognised ecosystem across both regulation and tax”

for financial services. I want the same for steel. That is why I was delighted to hear the Prime Minister in his speech on Monday acknowledging that we must end the unfairness that UK energy-intensive manufacturing pays so much more than our competitors overseas. The Prime Minister has historically been supportive of steel. I know for a fact that he has a keen understanding of the industry and clearly understands the threat of high industrial energy costs and the burden of the incredibly high policy costs that UK energy-intensive industries continue to face. So I ask the Government and my hon. Friend the Minister to continue the conversations they are having with the steel industry in these really tricky times, to help it to step forward into a greener and more sustainable future.

I know that since taking over his brief my hon. Friend the Minister has engaged regularly with our steelworks, which I thank him for, and I also know that he has been assiduous in understanding this issue. So I hope that he will agree with me that as a sovereign nation we have the ability to legislate and support our steel industry in a number of ways. Our neighbours and competitors in Europe have started taking action. As the hon. Member for Aberavon (Stephen Kinnock) outlined, in Italy the Government are temporarily removing renewable levies; in Spain, the Government have suspended power generation and consumption-related taxes; and in Portugal, the Government have put forward a minimum reduction in energy charges.

Meanwhile, our policy and network charges still continue to be much higher than those of our main competitors, so I urge the Minister to look urgently into abolishing the carbon price support mechanism, which is a tax that is not faced by our competitors; cutting down the network costs and capacity market fees; providing support for emissions trading scheme costs; and reassessing existing renewable levies applicable to steel. I understand that the renewable levies are there to encourage businesses to move towards environmentally friendly practices, and to some extent they have succeeded, but the cure should not be worse than the disease. Of course, we also need a green steel deal, as businesses transition to better, greener technologies, and British Steel has laid its cards on the table with its low-carbon road map announcement. I remain hopeful that my hon. Friend the Minister and the Business Secretary will be the ones to seal that historic deal.

There are few industries in this country that are more closely associated with an area than ceramics is with Stoke and steel with Scunthorpe. As fellow MPs in manufacturing constituencies, I am sure that many of my regional colleagues share the sense of duty to protect those industries and the communities built around them. I genuinely hope that my hon. Friend the Minister will be able to make some progress on this issue.

--- Later in debate ---

[Lee Rowley]

I am grateful for the hon. Gentleman’s intervention. I do acknowledge the challenge of the Grangemouth plant and the excellent work that goes on there. I have spoken to INEOS on several occasions since taking up my post. He and his colleagues have contributed to the carbon capture and storage debate actively and noisily over the past few weeks. He knows that an initial two sites have been announced and the intention is to have four by 2030. The Minister of State, Department for Business, Energy and Industrial Strategy, my right hon. Friend the Member for Chelsea and Fulham (Greg Hands) has articulated that we want to continue to work with the Scottish cluster to see what is possible there.

I want to touch on a number of points that individual Members made. My hon. Friend the Member for Stoke-on-Trent South rightly highlighted—along with many Members—the challenge of energy prices. We acknowledge and accept there are challenges with energy prices. My hon. Friend the Member for Scunthorpe highlighted price spikes noted in just the past few days. From conversations I have had, this debate and wider discussion within industry, we know that there are challenges. I thank colleagues, unions, industries and trade bodies for articulating that in recent months.

There is significant price volatility, which it is important to acknowledge. Prices have spiked and started to float down over recent weeks. I hope all Members would accept that in the past two years alone we have had very low prices and very high prices. We are at a particular place in the market at the moment.

[Holly Mumby-Croft]

Will my hon. Friend comment a little more on those lower prices? Although we might have seen lower prices, we are still at a significant disadvantage in the steel industry compared with competitors in the EU. Although he has made an important point, it does not negate the issue we are talking about.

[Lee Rowley]

I am grateful to my hon. Friend for her intervention. She is right to point out that there two factors here. One is the volatility and how the price has moved and the second is the compactor. The latter point is well made by colleagues from all parties. I know hon. Members will acknowledge that we have provided more than £2 billion of support in under a decade in price-release schemes for energy-intensive industries. I accept that there are significant concerns about the position we are in and where we are seeking to go. I hope that that will be acknowledged and contextualised within that reality.

When formulating where we do or do not go in future, I hope hon. Members will accept that the situation is extremely complicated. We have a very diverse group of energy-intensive industries—more than 70 sectors—as the hon. Member for Southampton, Test highlighted. We have a range of exposures, challenges around efficiencies and hedging strategies. My hon. Friend the Member for Stoke-on-Trent North (Jonathan Gullis) pointed out the challenge of hedging strategies in recent months. Other forms of mitigation might be possible.