Pub and Hospitality Sector

James McMurdock Excerpts

Tuesday 22nd October 2024 Westminster Hall

[James McMurdock (South Basildon and East Thurrock) (Reform)]

I thank the hon. Member for Mid Leicestershire (Mr Bedford) for bringing this debate about a very valid and appreciated topic.

It is fortunate that the specifics have already been set out today, because that allows me to keep things at a high level. I would like to ask the Minister to hear the kind of rallying cries that I am hearing from my constituents, which are: “Save the local pub” and “Save the family breweries”.

There are two things I would like to ask the Minister to focus on. One is to avoid the pitfalls that come with the counter-intuitiveness of the situation he is in and to recognise that, by increasing tax burdens even further, he would actually end up generating less revenue for the Treasury.

In my constituency of South Basildon and East Thurrock, we only have 23 pubs remaining. We have already touched on the alarming rates at which pubs are closing. One example in my constituency, very close to where I grew up, was The Barge, a 200-year-old pub. It is now gone and it will not come back. Those 23 pubs are raising more than £33 million in revenue for the economy, £10 million of which is going in tax. If the Government keeps burdening them, those pubs will close and the Treasury will receive less money.

Furthermore, people who do want to drink and do want to smoke will continue to do so. The hon. Member for Dumfries and Galloway (John Cooper) touched on minimum pricing, but what we are seeing is actually a decrease in people’s health. I would like the Minister to be conscious of the dangers of accidentally worsening the situation in terms of both tax and people’s health. People will drink if they want to and they will smoke if they want to, but in places where they are not regulated, where it is less safe and where no tax will be generated. We must be mindful of that. I will finish by thanking everyone and saying: save our local pubs.

Steel Industry

James McMurdock Excerpts

Wednesday 16th October 2024 Westminster Hall

[The Minister for Industry (Sarah Jones)]

It is a pleasure to serve under your chairmanship, Mrs Harris. I congratulate the hon. Member for Boston and Skegness (Richard Tice) on securing this important debate, which I am glad that we are having. Let me be clear at the outset: the new Government were elected on a mandate to invest in the UK steel industry and turn around its decline, and that is exactly what we will do.

As Members on both sides of the Chamber have echoed, the UK has always been a proud steelmaking nation; it has a rich heritage stretching back to the industrial revolution. My grandad worked in the tinplate factory fed by the steelworks of Port Talbot, and I think most of us in this place have connections, one way or another, to steel manufacturing. Yet, as has been said, steel has been a neglected industry for many years, with crude steel production declining by more than 50% in the last decade alone. Of course, that decline was brought into sharp focus when it was announced under the last Government that the blast furnaces would be closed at Port Talbot.

This Government do not believe that decline is inevitable. The decline we have seen in recent years has been due to a lack of care from previous Governments, who did the bare minimum only when it was too late. We saw the insolvency of SSI—Sahaviriya Steel Industries—steelworks in Redcar in 2015 and the insolvency of British Steel in Scunthorpe in 2019, and we saw how close Tata came to closing its UK steel operations. That pathway risked jobs and emissions being offshored for the long term and risked making us heavily dependent on steel imports for our vital infrastructure and our energy and manufacturing sectors.

This Government are taking a very different approach. This week, we launched a Green Paper on our industrial strategy. For that to have the greatest impact, we must be clear-eyed about the sectors that offer the highest growth opportunities for the economy and businesses, but steel is a foundational industry for practically every other important industry, from energy to infrastructure. We know that it is a vital component of our economy and our ambitions for growth, which is why we also need a steel strategy to determine the best steps forward to rebuild this hugely important industry.

We need to lay out long-term policies and plans to ensure that the UK steel industry is not left behind as the world decarbonises, so last month the Government announced that we will bring forward a new steel strategy next spring. I hear the House’s impatience for that strategy and I understand it: there has been a long period of decline, and we need to turn that around. Given the £2.5-billion investment that we have committed to the strategy, however, it is right that we talk to experts and to politicians around the country, particularly those who have steel in their areas.

[James McMurdock (South Basildon and East Thurrock) (Reform)]

I thank my hon. Friend the Member for Boston and Skegness (Richard Tice) for securing this debate. If I may, I will read a message that I received from someone I know:

“This Westminster Hall debate in infuriating. Talk is cheap!”

I highlight that because we all seem to agree how important the steel industry is. I acknowledge the past and that not all of that lies squarely on the Minister’s shoulders. I ask her to include in her response the steps that the Government will take to secure that future.

As the hon. Member for Newport East (Jessica Morden) eloquently put it, there are advantages to the more advanced technologies, but, as clearly laid out by my hon. Friend the Member for Boston and Skegness, there are practical reasons why they may not become reality—and we need to deal with reality. We all seem to accept and agree—

[Carolyn Harris (in the Chair)]

Order. May I remind Members that interventions are meant to be short and to the point?

[James McMurdock]

Apologies. We all agree that this is vital; will the Minister please lay out how it will become practical?

[Sarah Jones]

I thank the hon. Gentleman for his intervention and for reading out a message from somebody watching the debate. We all agree that it is time for action and that is exactly what the Government seek.

I will expand on our plans. The steel strategy will be developed and delivered in partnership with the steel sector and the trade unions, of course. It will work in lockstep with the Government’s industrial strategy. Our intention is to increase our UK capabilities, so that we can create a more vibrant, competitive steel sector. That will turn around the situation we inherited, where— I want to emphasise this—under-investment had resulted in dated infrastructure.

My hon. Friend the Member for Stockton North (Chris McDonald), who knows so much about the steel industry, made the point about the efficiency and economy of the new technologies, and why blast furnaces have struggled to make money for the businesses that own them in this country. British Steel’s blast furnaces were built in 1938 and 1954. Both the blast furnaces at Port Talbot were built in the 1950s. They have become incredibly unproductive because they have not been invested in. The new technologies are simply more productive. If we do not keep up with what the rest of the world is doing, we simply will not be able to compete in the market.

We inherited an industry on the brink. Nevertheless, within 10 weeks of coming into Government, we negotiated a better deal with Tata with better safeguards for workers and more money invested in their future. Our £2.5-billion fund for steel will ensure that we have a steel industry for the future. The Government’s ambition is to ramp up investment, strengthen our supply chains and create more well-paid jobs in the places they are needed.

We talk of primary steel. With the help of experts, we will review the viability of technologies for the production of primary steel, including direct reduced iron.

Business Confidence

James McMurdock Excerpts

Tuesday 15th October 2024 Westminster Hall

[James McMurdock (South Basildon and East Thurrock) (Reform)]

It is a privilege to serve under your chairmanship, Mrs Harris, particularly on this topic of business confidence. My constituency of South Basildon and East Thurrock is rich with potential. Basildon is the industrial powerhouse of Essex, and Thurrock commands a prime location on the Thames. That is not to say that both spots are without their challenges. Basildon faces a significant housing crisis, and the high street is suffering, as many high streets are. But with that comes a desire to improve things, and to improve things we need businesses to invest. It goes without saying that those businesses must have the confidence to do so.

Thurrock was unfortunately embroiled in an investment scandal to the tune of £1.5 billion and is in a very difficult situation. The interest servicing that debt alone is approximately 40% of its operating budget, so one can imagine the challenges it faces. That is exactly why we need investment and growth and business confidence. Some specific figures have been given on the dip in confidence, which I would say is—to put it lightly—unfortunate.

It would also be putting it lightly to say that I was somewhat dismayed to hear of decisions made in the past few weeks that will directly impact my constituency, such as the delaying—again—of the lower Thames crossing. I have spoken against the lower Thames crossing because I do not feel it is ambitious enough. Given the 15 years and £800 million spent on its planning, to be in approximately the same state of overextension in our road capacity in just a decade’s time—just five years after its completion—does not seem to be a good use of £9 billion of taxpayers’ money. That said, the decision taken was not to scrap the plan or not go ahead with it; the decision was to delay it, which I might consider to be uncertainty.

Furthermore, as we have seen in the papers, I was somewhat taken by surprise—that is also putting it gently—by the language used to respond to a business that does something legal, but which some people may not like, which was akin to language used in my university days. I am referring to the £1 billion project, relating to DP World, that was jeopardised. DP World is an extremely important business for not just my constituency but our country. It is the only operator with two deep-sea access area ports, and has direct freight to distribute goods across our country that come in from all over the world. It is essential. Whether people have workers’ rights in mind or not, for it to be treated with a slight lack of the professionalism that we might expect from those in high office was a shock to me, and to local businesses as well.

I conclude by saying that my constituency wants to enrich this country. My constituents want to work hard and to invest and they want their businesses to flourish, and they are willing to put in the time and effort to achieve that. We have all the ingredients to do those things. However, just this month alone, we have seen two projects totalling £10 billion very literally jeopardised. Does the Minister agree that that is not good enough, and that, going forward, more considered and professional language must be used when communicating with or about our major industries and businesses? Will the Minister also consider the approach to major infrastructure projects and how delaying them impacts not just residents but local businesses? There are knock-on effects of such delays—we have building projects right now that are literally dependent on the lower Thames crossing, which has been delayed.