Dormant Assets Funding: Community Wealth Funds

Jack Brereton Excerpts

Tuesday 6th December 2022 Westminster Hall

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

It is a pleasure to serve under your chairmanship, Ms Harris. I congratulate my hon. Friend and constituency neighbour the Member for Stoke-on-Trent Central (Jo Gideon) on securing this important debate. I add my full support to the creation of a community wealth fund, with funding from dormant assets, focused on those areas identified by the all-party parliamentary group for ‘left behind’ neighbourhoods. Those areas have so much to give but need more support to unlock that potential. They need this investment most, having suffered from a lack of investment for decades.

In my constituency, they are the wards of Blurton West, Newstead, Mere South and Mere North. The Mere North ward is particularly deprived, identified by the APPG as the sixth most deprived left-behind community in the whole country. I am determined to play my part wherever I can to help improve the situation. That includes transport schemes; my sponsorship of the scheme to reopen Mere railway station, which has advanced to the later stages of the Department for Transport’s restoring your railway programme, is part of that. When delivered, it will significantly address the shocking levels of transport deprivation in Mere North and the most deprived parts of Mere South.

In Mere North, the lack of effective public transport and very low car ownership—40% of households there do not own a car—exacerbate the challenges experienced in accessing work and further education. The station has considerable local support, and I have been struck by the level of community engagement. That shows that communities that are deprived, where engagement is usually low, can be enthused by identifiable projects and clear paths to improving the quality of life.

Much more can be done. Stoke-on-Trent has always had huge potential just waiting to be unleashed. Projects that deliver truly meaningful changes to the social and economic outcomes of our deprived communities will be those that tackle the underlying barriers to progress. Those can only be known locally, which is why inspiring community engagement in the process of delivery is so important.

I am pleased to have worked closely recently with the Coalfields Regeneration Trust in Mere, where we have launched the “Engage Mere” project. That pilot project is focused on working collaboratively to support local people to overcome some of the deeper-seated employment and health barriers many face, and delivering long-term improvements to quality of life. We need to see more support for projects like that.

This is the main thing I want to contribute to today’s debate, because it can be overlooked. There is a need for oversight and democratic accountability in allocating some of these funds. The best way to achieve that is through requiring project sponsorship of local MPs, as is already the case with local bids for national funding through the restoring your railway fund, led by the Department for Transport, and through the levelling-up fund, where local MPs rank priorities. That has been done because MPs are likely to back schemes that generally have wider community support. We are, of course, democratically accountable for our sponsorship decisions. MPs’ sponsorship would ensure that we do not see projects coming forward that do not align with local priorities and do not have local community support.

There are certainly many groups in my constituency that I am keep to support and promote, with the longer-term interests of the community in mind. I would happily sponsor community wealth fund projects that have achieved goals. I know that the local community shares and can deliver the long-lasting improvements needed. I am sure I am not alone in that. Community wealth funds have a vital role to play in ensuring we achieve the mission of levelling up for every part of the UK. As MPs, we must play our full part in realising those benefits.

Australia-UK Free Trade Agreement: Scrutiny

Jack Brereton Excerpts

Tuesday 19th July 2022 Commons Chamber

[Mr Jayawardena]

I do not think that seven months is rushing anything. This agreement can be ratified only once Parliament has scrutinised and passed the implementing legislation in the usual way.

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

There are huge opportunities from the Australia trade agreement for the ceramics industry in Stoke-on-Trent. Does my hon. Friend agree that it is vital that we get on with delivering that and delivering the jobs and opportunities for industries in the midlands and the north?

[Mr Jayawardena]

My hon. Friend has done great work at the Department for International Trade and I am delighted that he has championed the Potteries today. The wider region and the west midlands as a whole make £37 million-worth of exports to Australia. He is absolutely right that this deal, unlocking the benefits of Brexit, will secure new opportunities for businesses across his region and beyond.

UK-Japan Comprehensive Economic Partnership Agreement

Jack Brereton Excerpts

Wednesday 25th November 2020 Commons Chamber

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

Thank you, Madam Deputy Speaker. It is a pleasure to follow my hon. Friend the Member for Stoke-on-Trent Central (Jo Gideon).

Like the UK, Japan is an island nation—a maritime trading nation. We have shared values: it is a strong voice for free trade and the rules-based international order, as many hon. Members have already said. It was hugely welcome that Japan was one of the first nations to announce that it would seek a mutually improved trading future with a post-Brexit UK. As our partnership deepens, I want more of that investment to come to Stoke-on-Trent, and for Japanese tourists and buyers to come to enjoy the authentic world capital of ceramics.

Like the Japanese, we are keen on tea and fine ceramics—or should I say porcelain?—so at the top, or high-value, end of the market for exceptional ceramics, it is no surprise to find a fusion of Japanese and Stoke-on-Trent expertise and artistry. The British-Japanese ceramicist Reiko Kaneko, whom I was delighted to visit in my constituency, has her studio locally. There is also Hitomi Hosono—sorry for my pronunciation—who trained in Japan, Copenhagen and London, but it was at Wedgwood in my constituency that she really made her mark. She is now its artist in residence, and one of the few who has actually exhibited while still alive at the British Museum and the Victoria & Albert Museum. This is what Stoke-on-Trent can offer to global Britain: local expertise and local passion at the very top of the world class.

However, it is not just about those artists; we are also keen to ensure that earthenware, ceramics, tiles and tableware are increasing their exports to Japan. The UK lags behind EU competitors such as France and Portugal, and we can do a lot better than that. We want to make sure that we are increasing our exports into the Japanese market, and this trade agreement will allow us to do that. It is also about ensuring that we secure not just market access, but greater market presence, and a specialist DIT adviser for ceramics based in Stoke-on-Trent could be just the way of achieving that. Ceramics manufacturers have certainly welcomed the partnership with Japan, which is their fourth largest export market. I hope we can agree that Stoke-on-Trent ceramics are an iconic good that we must continue to push locally.

I would like to thank the Secretary of State and the Ministers for all they have been doing to push ceramics. They never fail to mention ceramics in the many trade agreements we are seeking to secure. It fits very much as well with the recent work of VisitBritain, which shows that this is a place that the Japanese see as the world’s best destination for revisiting places of nostalgic importance. That is very much about the ceramics industry and the ceramics that we want to see very much pushed with further trade agreements.

Continuity Trade Agreements: Parliamentary Scrutiny

Jack Brereton Excerpts

Tuesday 17th November 2020 Commons Chamber

[Greg Hands]

I think the hon. Member’s phrase was “abject ministerial failure”. We are working hard to roll over all these agreements. I just remind him that these are all agreements that were opposed by the SNP in the first place. It abstained on EU-Japan and EU-Singapore, and it was against EU-Canada, against EU-South Africa and against EU-Korea. He ought to be celebrating the fact that these agreements are not being rolled over, to be consistent with his previous position. We are working hard to make sure that they are rolled over.

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

Does my right hon. Friend agree that we should continue to follow the significant headway we have been making on a number of these trade agreements, and that we should help great British businesses, such as those in Stoke-on-Trent, to grow jobs by making the most of these agreements?

[Greg Hands]

My hon. Friend is quite right. Both the Secretary of State and I have enjoyed meeting businesses in his constituency—particularly those in ceramics—and right the way across the city of Stoke. We have them on our minds in all our trade negotiations, to ensure that we get new opportunities for the ceramics industry in the Potteries and elsewhere.

UK-US Trade Deal

Jack Brereton Excerpts

Monday 2nd March 2020 Commons Chamber

[Elizabeth Truss]

I can confirm that we stand by our online harms commitment, and nothing in the US trade deal will affect that.

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

I particularly thank the Secretary of State for mentioning the ceramics industry in Stoke-on-Trent. Does she agree that this has huge potential to give access to markets in the US for a number of ceramics firms, but also for a number of other industries right across Stoke-on-Trent, and to help to level up the opportunities for the people I represent in Stoke-on-Trent South?

[Elizabeth Truss]

I thank my hon. Friend. I enjoyed visiting his constituency and meeting some of the fantastic companies there, including Walker’s Nonsuch Toffee, for which I also want to secure a tariff reduction.

Oral Answers to Questions

Jack Brereton Excerpts

Thursday 23rd January 2020 Commons Chamber

[Elizabeth Truss]

I am pleased to tell the hon. Gentleman that there will be a ministerial forum this afternoon to talk about that issue. We will make sure that Northern Ireland is completely involved in our agenda, because we want our independent trade policy, our tariff policy and our trade remedies policy to follow the priorities across the United Kingdom.

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

I join my hon. Friend the Member for Newcastle-under-Lyme (Aaron Bell) in thanking the Secretary of State for visiting Stoke-on-Trent last week. Does she agree that for industries such as ceramics, it is essential that we have a robust regime of tariffs to make sure that we guard against countries who want to undermine the rules-based system?

UK Trade and Investment Strategy

Jack Brereton Excerpts

Tuesday 23rd July 2019 Westminster Hall

[Peter Grant]

The hon. Gentleman knows perfectly well that the NHS in Scotland, like the NHS throughout the United Kingdom, has a serious shortage of expert, professional specialist staff. Part of the reason for that is that his Government are making the United Kingdom a less attractive place for people to come and work. They have created a hostile environment. The hon. Gentleman can snigger up his sleeve behind me, but I have cases in my constituency where a healthcare provider had to terminate the contracts of two professionally qualified healthcare specialists because they did not meet the United Kingdom Government’s salary level requirements to be allowed to stay.

If those specialists had worked in London, where everything—prices, rents, wages—is higher, they would have met the threshold. The same provider is allowed to provide services to people in London, but the people providing services to my constituents had their contracts terminated and had to leave the United Kingdom. That is not the fault of the Scottish Government or the European Union; it is the fault of an immigration service that is based on numbers, not on human beings or the need to continue to attract the best talent and the best people we can into our NHS. It is a simple fact that there are aspects of the NHS in some parts of the United Kingdom that are run for profit that, under the policy of the Scottish Government, will not be allowed to run for profit. They will be owned directly and provided for by the public sector.

We can all have different opinions about the best way to run a health service, but it would be utterly unacceptable for a United Kingdom Government or a Scottish Government to impose a way of doing things on health authorities in England that they believed was not in the best interests of their people. It would be equally unacceptable for any Government of the United Kingdom to enter into a trade deal, without the consent of the Government of one of the devolved nations, that would undermine the devolved authority that those nations have. I have not yet heard a categorical, cast-iron guarantee, so I will give the Minister another chance to give an absolute guarantee in his summing-up that there will be nothing outsourced in Scotland’s NHS without the explicit consent of the Government and Parliament of Scotland.

One of the arguments used for our leaving the European Union—I am pleased that the hon. Member for Hornchurch and Upminster did not use it today, because it is completely ridiculous—was the claim that, as the United Kingdom has a trade deficit with the European Union and a trade surplus with the rest of the world, the answer was to leave the European Union and only trade with the bits of the rest of the world that we have a trade surplus with. If we only trade with people who we have a trade surplus with, the only people who are going to trade with us are those who have a trade surplus with us, so nobody can trade and it does not get us any further forward.

That argument also completely fails to recognise why it is that, particularly in manufactured goods, the United Kingdom has struggled to trade as an equal competitor with the rest of the European Union. It is because other parts of the European Union take the profits of their industry and put them back into the industry, to make it more efficient, cost-effective and competitive. For too long in the United Kingdom, the profits of industry have disappeared to a tax haven somewhere in the Caribbean or Mediterranean. Because of the way that United Kingdom businesses have run their businesses, they have not kept up.

If we look at the productivity of businesses in the United Kingdom compared with their equivalent direct competitors in parts of the United Kingdom, there is nothing in European legislation that means that Europeans sell more stuff and more profitably than the equivalent companies in the United Kingdom. That happens because they can often do it more efficiently and reliably, sometimes even in industries where the UK previously had a record as one of the best in the world.

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

In fact, we have seen significant manufacturing growth in this country in the past few years under Conservative rule. We saw rapid decline of manufacturing industries under the Blair and Brown Governments, but under the Conservatives we have seen significant growth in the manufacturing industries in this country.

[Peter Grant]

The fact remains that industry in the United Kingdom is not nearly competitive enough compared with industry in some of the countries that we should regard ourselves as seeking to match. I will not get into an argument about whether the previous Labour Government or the current Conservative Government are more disastrous for the people of Scotland, because frankly neither have delivered any of the things they promised to Scotland. I am aware that the hon. Member for Strangford wanted to intervene; I apologise for forgetting and I am happy to give way to him now.

--- Later in debate ---

[Graham Stuart]

The overall stock fell. The hon. Gentleman is talking about flows; he should try and get to grips with this. Maybe this will be a useful seminar for him to do so.

If the hon. Gentleman looks at the stock line for Europe, which is the accumulated level—not at the flow line, as flows go up and down year by year and are essentially volatile; they always have been and I project they always will be—he will find that it fell in Europe too. The net amount fell; there was net disinvestment in Europe and in the world. What happened in the UK? It went up again, but not quite as quickly as it did before. It is the global context. By every possible measure—flow, stock, greenfield, mergers and acquisitions—we lead Europe.

We have strengthened our position in Europe. Why has that happened? It is because of the business-friendly policies that we have put in place. As the shadow Minister is feeling so aggressive, I put it to him: in what possible parallel universe in which there is increasing competition for mobile global investment, with the massive number of jobs and the prosperity that brings, would jacking up corporation tax rates lead to more jobs, more opportunities and more prosperity for people in this country? That is the trade and investment strategy of Labour.

We do not need to think just about what Labour’s current policies will do; we can look back at every previous Labour Government. By the end of the 2000s, France was just about overtaking the UK; now we have more than twice as much as France. Just think of the hundreds and hundreds of thousands of jobs—I am most interested in that number. While the hon. Gentleman and his party play politics, we deliver the investments that lead to prosperity and jobs. If he is interested in going further into the subject, he should look at Ernst & Young and the pattern over the last few years. What have we seen? We have seen an increase in investments outside London and the south-east, and an increase in the share of the FDI going into manufacturing, which has been maintained and strengthened in this country.

That is the exact opposite of the picture that the hon. Gentleman tried to lay out. It is there in every figure—from the OECD, UNCTAD, the Economist Intelligence Unit, Deloitte and fDi Markets. That is a fascinating one. Some people say, “If you include mergers and acquisitions, and you include intra-company transfers, that is not real FDI. We should look at greenfield and new start-ups, not someone buying a factory. What difference does that make? What about creating a new one? Let’s look at that.” Who looks at that? That would be fDi Markets. What did it show last year? From memory, it showed that the UK got 1,268 projects, that France temporarily overtook Germany, with 580 projects—well done President Macron, who has put a lot of work into that—and that Germany had 560 projects. In other words, despite Brexit uncertainty, in 2018 the UK had more greenfield investment projects than Germany and France combined. On what basis would anyone other than the most devout and misguided socialist try to suggest that those figures are not good?

[Jack Brereton]

Does my hon. Friend agree that the manufacturing figures referred to demonstrate exactly the picture of this Government and show the investment in exports that is going on? In the Blair and Brown years we saw a dramatic decline, with factories in manufacturing industries closing up and down the country. Under the Conservatives, we have seen a massive growth in manufacturing industries, clearly in part because of the exporting success and the support for exporting in this country.

[Graham Stuart]

My hon. Friend is a particular champion of industries in his area, not least ceramics in Stoke. I thank him for speaking in my constituency last Friday and talking about the success that has come from the effort put into that local economy to help to turn it around and strengthen it.

Since 2010, we have been working to turn around the toxic economy legacy bequeathed by the last Labour Government and to support the pioneering, innovative, entrepreneurial brilliance of British business once again. Success has come from policies designed to promote the dynamism, openness and flexibility of our economy. A further important step was taken by the Prime Minister when she established a dedicated trade Department for the first time in British political history. The Department for International Trade has just celebrated its third birthday and is crucial to the delivery of trade and investment success.

Given that this could be a valedictory performance by me, as we get a new Prime Minister later, I pay tribute to the Secretary of State for International Trade and President of the Board of Trade, my right hon. Friend the Member for North Somerset (Dr Fox), for the brilliant work he has done leading and establishing this Department of State. Its work will become even more vital after we leave the European Union. We must build a global, outward-looking Britain that is a dynamic and independent champion of free, fair, rules-based international trade.

Our trade and investment strategy seeks three basic things: higher exports, greater foreign and outward investment, and reduced trade barriers. Contrary to what we have heard, exports are booming. Total UK exports now stand at a record high of £647 billion, bearing out exactly what my hon. Friend the Member for Stoke-on-Trent South (Jack Brereton) just said. They are up in real terms—[Interruption.] Maybe the shadow Minister only looks at numbers that suit his narrative? They are up 25% in real terms.

In 2017-18 alone, the Department for International Trade helped UK businesses to export goods and services worth around £30.5 billion, which is a year-on-year increase of 4%. We are proud of our work in encouraging more companies to export, as my hon. Friend the Member for Hornchurch and Upminster said in her excellent opening speech. A lot of the difficulty is in overcoming the timidity and the concerns that companies have in exporting. Nearly 111,000 firms exported goods in the first quarter of 2019, which is 5,000 more than in the same period last year.

I have talked about the foreign direct investment numbers, but the latest figures from UNCTAD show that the UK hit a record high of almost £1.5 trillion in FDI stock by the end of last year, which is more than Germany and France combined, creating 76,000 new jobs and safeguarding 15,000 more. That was in one year and in marked contrast to 2010, when France was close to overtaking us.

To put the FDI numbers into further context, UNCTAD’s figures show that FDI flows—flows not stocks; I hope the hon. Member for Sefton Central (Bill Esterson) knows the difference—fell by 19% globally in 2018. [Interruption.] I am now talking about flows as opposed to stocks, so it is repetition, but about a different aspect of something that I hope the hon. Gentleman would take an interest in. FDI flows fell by 19% globally and by 73% in continental Europe. What happened to FDI into the UK? The flows increased by 20%. So much for the negative effects of Brexit uncertainty.[Official Report, 3 September 2019, Vol. 664, c. 2MC.]

The pace of change in the global economy is increasing but, for the agile, opportunities abound. The Department for International Trade provides the platform to give the UK a unique trade advantage, by locating export promotion, trade finance, trade remedies, export licensing and international negotiations all in a single Government Department.

I want to respond to some points made by my hon. Friend the Member for Hornchurch and Upminster. She asked about the 100 days. We will continue to prepare for no deal to be the outcome, which is not the avowed intent of either of the leadership contenders for the Conservative party. We prepared and were in a good position ahead of 29 March, and we are working with the Department for Business, Energy and Industrial Strategy to be able to meet questions coming in from businesses. We are ready to meet any surge in demand at that level.

My hon. Friend asked about state-level engagement with the US. The Secretary of State and I met with Senators from Florida and Texas the other day. As we expand and strengthen the Department’s reach, we recognise that it is not all about working at the national and federal level, whether in the US or elsewhere, such as in Brazil. I was pleased to meet the Governor of São Paulo, which itself has more than 30% of the GDP of Brazil. There is a lot more to be done at that more granular level in order to identify barriers and overcome them.

My hon. Friend made an interesting point about language. Given our national weaknesses on foreign languages, I hope that officials may be able to follow up on that point. She also touched on the DIT working more closely with the FCO and DFID. We are absolutely trying to do that. I am delighted that we are becoming an official development assistance Department. We have to bring trade and development together. That is how people get out of poverty. This involves so many countries. There is now the Ghana Beyond Aid initiative; I visited Ghana’s investment conference in London last year. These countries do not want to be seen primarily as aid recipients. They want to be seen as countries with great entrepreneurs, great technology and great capability. That is why, after the Prime Minister’s speech last year in Cape Town, I am helping to organise the Africa investment summit on 20 January 2020. It is precisely to ensure that, cross-Government, we are able to support increased investment in Africa and take advantage of the opportunities there.

My hon. Friend touched on the subject of regulators. Whether further changes are required in their missions as defined by Government is something that I will leave for others to wrestle with, but I can say that our regulators really are stepping up to the mark. The Financial Conduct Authority, with whose representatives I have met, is making a major difference. People can look at our FinTech bridges. We lead the world on FinTech—financial technology. It is enormously valuable, and we are creating FinTech bridges with a number of other countries. For instance, we are deepening our engagement with Hong Kong and Australia. In both cases, the FCA has been a fundamental part of the team as we try to ensure that start-ups there can more easily come to the UK, and vice versa. It is precisely that kind of opening up of markets that is so important.

I am not sure that I have ever given a speech from my iPad before. When the screen goes blank—

Oral Answers to Questions

Jack Brereton Excerpts

Thursday 11th July 2019 Commons Chamber

[Dr Fox]

I had a number of discussions in the United States about that issue this week, as the hon. Gentleman may have guessed. It is likely that tariffs will be applied following the WTO determination of the level of tariffs that the US is allowed by law to set following the judgment on Airbus. Of course, the judgment on Boeing, to which he alluded, is also coming. At some point, we must ensure that both European countries and the United States are able to give appropriate support to their aircraft industries, because the alternative will be market access for China, which will be in the interests of neither.

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

T4. As South Korea is the third largest export market for ceramics, does the Secretary of State agree that the recently signed outline free trade agreement with South Korea is a huge boost for the ceramics industry?

[George Hollingbery]

The transition agreement will replicate the effects of the preferential market access in the existing EU-South Korea FTA, providing certainty for businesses and allowing them to continue trading on preferential terms. It will provide a firm basis for the further strengthening of our ambitious trade and investment relationship as we work together in future.

Small Business Exports

Jack Brereton Excerpts

Wednesday 20th March 2019 Commons Chamber

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

What I want to explore in this debate is how, where and with what resources the Department for International Trade is taking action to connect businesses, especially small businesses, with the Government’s export strategy. Small businesses account for more than 99% of UK private sector businesses; there are some 5.6 million of them. These are the innovators, and they have huge potential to export more, but not enough of them export outside the UK. The Federation of Small Businesses reckons that only about a fifth of its members are exporters, despite the expertise on offer from the FSB itself. One thing that has struck me is that a great deal of information, advice and assistance is available to potential exporters but the question remains: how can we ensure it is hitting home? How can we persuade and facilitate more small businesses to become exporters?

I welcome the announcement in last week’s spring statement that UK Export Finance will introduce a new general export facility and launch a consultation on UK Export Finance’s foreign content policy. It will be encouraging to small business that the proposed changes will recognise the full contribution of the UK supply chain and that a wider range of exporters will gain access to UK Export Finance support, but I hope the Treasury will look even more favourably on the Department for International Trade at the next spending review. It is vital that the resources are there to engage the local businesses of global Britain in the dynamic potential of the United Kingdom to be a great trading nation of the 21st century outside the EU.

The rewards from increasing our export success are such that a bit more spending—rigorously targeted, of course—will soon more than pay for itself through duties if more firms become confident exporters.

[Jim Shannon (Strangford) (DUP)]

I spoke to the hon. Gentleman beforehand to clarify the matter that I have a deep concern about—indeed, the Minister is probably aware of it as well. I have major issues with the changes for those exporting their goods to Europe and globally, because of the lack of clarity over food stamping and packaging and whether things can be accepted with dual stamps. That affects not only the export businesses but the packaging companies in my constituency, which have not received orders from local businesses and will not be able to process the huge order that will be coming when clarity eventually arrives. The Department of Agriculture, Environment and Rural Affairs and Department for Environment, Food and Rural Affairs do not seem to have got their act together on this yet. Does the hon. Gentleman agree that this lack of clarity affects not simply export businesses, but the subsidiary businesses, such as the packaging firm in my constituency that depends on them? This must be seen as a departmental priority.

[Jack Brereton]

I thank the hon. Gentleman for the points he has made, and I know the Department will be looking into these issues.

It is essential that we seek to open markets up, and the ambitious free trade agreements that the Department for International Trade will deliver are a key part of that. Indeed, what would be the point of delivering those free trade agreements if we did not have exporters eager to target and take advantage of them? I have read the Government’s export strategy, which is an excellent and comprehensive document—one that I am sure will be drawn on in the Minister’s reply, to the benefit of the House. It would be helpful for there to be an MP’s guide to signposting business to export support programmes, because that is certainly an issue that all colleagues will be keen to engage with at a constituency level.

[Gareth Snell (Stoke-on-Trent Central) (Lab/Co-op)]

I thank the hon. Gentleman for securing this debate. Like him, I understand the nature of exports, particularly in respect of cities such as Stoke-on-Trent. On the point about MPs’ support, will he join me in congratulating the Staffordshire chamber of commerce on the work it does through its export surgeries, where it helps businesses with the import and export paperwork and walks them through, step by step, with a hand-holding exercise that allows them to open up their own domestic products to the global market?

[Jack Brereton]

I thank my parliamentary neighbour for making that point. He is absolutely right about Staffordshire chamber of commerce, which offers some incredible, fantastic services for local businesses in Stoke-on-Trent and Staffordshire more widely. Many businesses would not be able to go without those services.

The strategy to which I just referred is subtitled “supporting and connecting businesses to grow on the world stage”. I am confident that that is the right ambition, and one challenge for us all in this House will be to ensure that our local businesses are connected to it. The Government promise that they will

“encourage and inspire businesses that can export but have not started or are just beginning; placing a particular focus on peer-to-peer learning…inform businesses by providing information, advice and practical assistance on exporting…connect UK businesses to overseas buyers, markets and each other, using our sector expertise and our networks in the UK and overseas”

and, finally,

“place finance at the heart of our offer”.

That is a positive statement to read, and it is in that spirit of positive engagement that I want to raise generally the remaining barriers to small-business exports.

[Craig Mackinlay (South Thanet) (Con)]

My hon. Friend talks about a spirit of working together; has he considered whether the good plan for the future that the Department for International Trade is pursuing should include the opportunity for increased exports to our close Commonwealth friends and neighbours? That trade can work both ways. Those countries are growing markets with a third of the world’s population, and they are where Britain should be looking for reciprocal trade.

[Jack Brereton]

My hon. Friend is absolutely right that we need to strengthen those links with Commonwealth countries around the world. It is important that we support those strong growing markets, in which we can trade more of the fantastic products that we make right up and down this country, especially those products made in cities like Stoke-on-Trent.

As a city we are proud of the world-class goods that we make, most famously in the ceramics industry, of course, but also in many other areas of contemporary manufacturing, from the traditional toffees of Walker’s Nonsuch in my constituency, to the cutting-edge technology of Goodwin International. They are UK export success stories. I know from Walker’s that the increase in the capital allowance to £1 million has been vital to the affordability of investment in its factory and in the latest industrial capital goods that it wants to produce.

Let me turn to the small businesses that are not engaged either in exporting or in the programmes available to encourage and help them. The Federation of Small Businesses has on its website an eye-opening article, “Breaking New Ground”, which explores what is holding back potential exporters and, crucially, what they are missing out on. It quotes a report by WorldFirst that found that the typical UK small business exporter generates more than £287,000 per year from exports. It further notes research by the Chartered Institute of Marketing and PricewaterhouseCoopers that found that of those small firms currently exporting, 70% expect to increase exports over the next three years.

Despite the evident value in exporting, less than a fifth of British small firms export anything. Why? According to the CIM and PWC study, 33% lack the confidence to approach new markets, while many see it as too great a challenge. Sixty-nine per cent. of small companies reported significant hurdles to exporting in the 2017 Hitachi Capital British business barometer. The key barriers identified in the FSB article are: insufficient resources, whether staff, time, cash or product; unfamiliar local customs, culture and language; shipping issues; handling, clearing and agency charges; exchange rate fluctuations; legislative difficulties overseas; opaque international tax rules; uncertain immigration employment laws; certificates of origin; and other red-tape issues. As Peter Sewell, regional director at Crown World Mobility, puts it:

“Understanding it all takes more than a Google search.”

It is easy to see how, for sole traders and small partnerships, exporting might be daunting even to consider. Larger companies have the capacity to employ staff in export markets, and if based in the region, they can better overcome many of the challenges I have listed. For smaller companies, though, that is often just not possible and would amount to a significant proportion of their revenues.

I wish to highlight some specific issues that were raised with me on visits to local businesses in Stoke-on-Trent. I have already mentioned Staffordshire chamber of commerce, the local exports team of which, under Rob Lawley, does a great job, and Stoke-on-Trent is one of the cities that is on the up. When it comes to exports, however, the city continues to underperform against midlands cities of comparable size, such as Coventry. That is, I think, a product of Stoke-on-Trent’s business base being far more reliant on small enterprises, and it means that the local team needs more resources to keep the momentum up and fully realise our potential.

We also have unique and specialist sectors, most importantly our ceramics industry. The British Ceramic Confederation is very keen to see a Department for International Trade ceramics expert based in Stoke-on-Trent to meet the very specific needs of the industry. Preferably, they would be based at the new ceramic research park that we hope to see developed as part of the sector deal that the ceramics industry is pursuing with the Department for Business, Energy and Industrial Strategy.

I know that the Department is well versed in the issues facing the ceramics industry after Brexit and the need to continue combating unfair trade practices from countries that do not respect the rules-based international trade system. Indeed, the Minister of State for Trade Policy was a very welcome guest to a roundtable that I hosted recently with local ceramics firms at Valentine Clays in Stoke-on-Trent South. I am also pleased to report that Heraldic Pottery, which he also visited on his trip to Stoke-on-Trent, has expanded further by buying the significant and historic Duchess China Works in Longton in a supply-chain takeover.

Ceramics is undergoing a hugely welcome renaissance in its authentic home of the Potteries, and the export success for businesses large and small will add to the mood of economic optimism in the city. The touring exports hub that joined the Minister on his visit to Valentine Clays is an important part of the engagement that business needs.

I am delighted that the Department has listened to the concerns that I and others have raised about the need to continue anti-dumping measures post Brexit. Most recently, the Secretary of State confirmed that measures to prevent unfair dumping practices that threaten our ceramics industry from artificially cheap imports would be rolled over when we leave the EU. It is also incredibly reassuring for the industry that, under a no-deal Brexit, tariffs would continue to apply to certain ceramic products.

It is essential that, as a Government, we continue to champion measures that support smaller businesses to create more job opportunities, particularly more skilled jobs, which attract a higher salary. In January, the Under-Secretary of State for Business, Energy and Industrial Strategy, my hon. Friend the Member for Rochester and Strood (Kelly Tolhurst), joined me on a visit to Park Hall Business Village. The village, which has expanded in phases, currently now houses more than 100 small businesses, employs more than 1,000 people and occupies over 250,000 square feet of commercial space. It verifies the growing economic success that has been seen and has increased the demand for additional commercial space. There we met: Deck Joint Ltd, which engineers and manufactures “leave in place” formwork for the construction industry; Eden Holistic Pet Foods, a rapidly growing business that supplies grain and gluten-free pet foods; and Fifteen Group, which provides IT services. We have many other smaller businesses that are expanding and have huge potential to export more of their products and services.

One of the issues that is raised most often with me locally is the need to widen awareness of the export finance that is available. Far too few have a good awareness of the support available to finance growing exports or enter new markets. It can sometimes come as a pleasant surprise to small businesses when they find out quite how supportive the Government are in de-risking the considerable financial outlay for first-time exporters—though, of course, more resources, more reliefs and so on will always be welcome in persuading small businesses to take that final step into being an export supplier, especially of goods and services, which are more complicated in their logistics than putting a parcel in the mail after an order on the internet.

Plenty of advice and information is available to small businesses that are looking to export. A great deal of it is free of charge or comes in premium form with membership of one of the trade groups or small business forums that do such excellent work. What I ask of the Government is that the exports strategy be fully resourced to maximise its positive effect. Global Britain’s success will be built on the success of local businesses, many of which have never exported before. Crucially, we need to have increased expert support in export markets to allow small businesses to penetrate those markets. I hope that those small businesses in particular will be the focus of the Government’s efforts to support and connect businesses to grow on the world stage.

Trade Remedy Measures: UK Interests

Jack Brereton Excerpts

Monday 25th February 2019 Commons Chamber

[Dr Fox]

I find it bizarre that what I interpret as the position of the Labour Front Bench today is to maintain trade remedies where there is no UK producer interest. It does not comply with WTO law, but even if it did, it would make no economic sense whatsoever to apply increased cost to the United Kingdom unnecessarily. I think that that shows how utterly confused, and confusing, Labour’s policy in this area is.

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

I thank my right hon. Friend for his statement, and particularly for his reference to the ceramics industry. Does he agree that it is essential for the ceramics industry in Stoke-on-Trent that we maintain the level playing field in trade against those unfair practices, and prevent those who want to flood the UK market with low-value goods from doing so and threatening British manufacturers?

[Dr Fox]

One of the reasons I looked forward to making my statement was that I would be protected from the persistent but not unwelcome badgering of my hon. Friend about ceramics in his constituency. In recent months, he has made the point forcefully and frequently in every corner of the building in Whitehall. Yes, I do agree with him: while we want our imports to fall given the cost to consumers, protection is necessary when countries are following policies that are designed to undermine the concepts of international trading law. We will resist those. We are rolling over the protections for the ceramics industry today because it is very vulnerable to the practices of dumping, overproduction and subsidy which we so deprecate.