Business and the Economy

Jim Shannon Excerpts

Wednesday 21st May 2025 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

When it comes to business and the economy, we want to ensure that every region in the United Kingdom of Great Britain and Northern Ireland can benefit. Northern Ireland is the UK’s smallest region by GDP, but it has higher GDP per head of the population than some regions. It is really important that Northern Ireland has the same advantages and opportunities, and to be fair, I think the Minister is committed to that. Would the hon. Gentleman agree that, when it comes to improving business and the economy, my young people in Strangford deserve the same opportunity as those in his constituency or, indeed, in Scotland, Wales or wherever it may be?

[Andrew Griffith]

The hon. Member is exactly right. When I describe my constituency as “South Downs”, people occasionally assume that it is in Northern Ireland, but all of our young people deserve the best opportunities. We know that the best outcomes for young people are when they can enter the workforce, and that if, when they graduate from school, college or an apprenticeship, those young people cannot immediately find productive work, the scarring impact of that can run through the entirety of their adult life and they never catch up with their peers’ earnings. That is why it is so important that we have a healthy labour market, and a healthy labour market relies on the ability of employers to feel that they can take a chance, give people opportunities and benefit from that.

I want to make some progress, which I suspect may be popular. There are many Members on the Opposition side; sadly, there are disappointingly few on the Government side. Given the paucity of business experience on that side, it is probably appropriate for there to be more listening than talking on the Government Benches.

Let us imagine—and, Madam Deputy Speaker, you will know this from your wonderful constituency—that despite all the headwinds this Government have imposed on business, an entrepreneur does well, grows their business into a successful operation and wants to hand it down to the next generation after they are gone. Those people, who have taken risks to create something good for society, are now at a competitive disadvantage as a result of the family business death tax. They will be forced to carve up, slice up, or close up shop forever to meet the demands for business property relief and inheritance tax.

Analysis from CBI Economics for Family Business UK estimates that this measure alone will result in 208,000 job losses and a £2 billion net loss to the Treasury. Again, I hope the Minister will address that directly when he responds. Family Business UK’s chief executive, Neil Davy, says that “far from stimulating economic growth” this policy “will achieve exactly the opposite.” He is right. To illustrate just how ridiculously flawed this policy is, it applies to families here in the United Kingdom, but it does not apply to overseas businesses that operate here, or to those owned by private equity or foreign corporate owners.

Labour has stolen any incentive for success from a generation of home-grown entrepreneurs. We really cannot go on like this. The gulf between those who create wealth and those who govern us has never been larger. Only one Cabinet Minister, the Secretary of State for Scotland, has any real experience of running a business. Trying to find business experience among those on the Labour Benches is like trying to find a tax the Deputy Prime Minister does not think needs to be raised. It is no surprise that, according to the Institute of Directors, over two thirds of businesses are now pessimistic about the future of the economy.

Carer’s Leave

Jim Shannon Excerpts

Wednesday 14th May 2025 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

It is a pleasure to serve under your chairship, Mr Stringer. I commend the hon. Member for North East Fife (Wendy Chamberlain) for leading the debate. It is a real pleasure to see her back in Westminster Hall leading a debate. Party Whips sometimes do not get an opportunity to do things, so well done to her for making time for this, even though she does not have much time. I congratulate the hon. Lady in all her endeavours in supporting this subject matter. Even among the Government, there is sympathy, compassion and understanding of why this matter is so important, because every one of us deals with these issues every day of the week.

The most recent statistics show that there are some 5.7 million unpaid carers across the United Kingdom of Great Britain and Northern Ireland. That represents around 9% of the population, so industrious elected representatives, which we all are, will deal with those people every day of their week and understand the circumstances. They will also understand the commitment and time that those people give voluntarily, without any idea of what it will cost them—they just do it because, as the story the hon. Member for Glastonbury and Somerton (Sarah Dyke) told shows, they love the people they care for. That is surely what it is all about. Their work and determination to care for a loved one does not go unnoticed, and it is extremely important that we do all we can to support them.

The pending Employment Rights Bill sets out the case for paid carer’s leave for Northern Ireland. The stats back home are quite worrying—I think they are similar to those in Wales, although the hon. Member for Brecon, Radnor and Cwm Tawe (David Chadwick) said that they are probably higher. One in three people in Northern Ireland have had to give up employment because of their caring responsibilities. Shockingly, 44% of carers in Northern Ireland have lost out on as much as £1,000 a month in wages due to leaving work or reducing their hours.

The hon. Member for West Dorset (Edward Morello) told the story of Sarah. He said that it was not unique, and it is not—it is a story that is replicated every day in my constituency and, I believe, in the constituency of every Member who is here and of every Member who is not here. Every week in my office I meet those volunteers —those family members—who give their all. Their commitment drains them emotionally and physically. Sometimes, when it comes to filling out benefit forms, I see the difficulties that they have and I sometimes wonder how on earth they are able to look after anybody with all their complex health issues.

The hon. Member for Harlow (Chris Vince) is no longer in his place, but he mentioned young carers. I know that that has been one of his passions in this Chamber. It is also something that I deal with, although maybe not as much as I used to—I have a girl in the office now who does almost all the DWP and benefit issues. She tells me that young carers are often not acknowledged in the way that they should be. They do it because they love their mums and dads—that is what it is all about.

Carers UK has estimated that providing five days of fully paid carer’s leave for employees in Northern Ireland could cost the Northern Ireland Executive between £10.3 million and £15.2 million a year. However, that could still save the Northern Ireland Executive some £4.3 million a year in carer’s allowance payments. What carers do, and the cost factor for them, can never be overstated. In terms of that large cost to the Executive, there is a give and take. There is no doubt that that could be a beneficial step to take to support those with caring responsibilities.

The whole thrust of this debate, put forward by the hon. Member for North East Fife, is about how we can help carers the most. We all like the Minister, not just because of his role, but because he is always amenable and personable when we propose things to him, and I hope that he can give us and our constituents some encouragement.

A crucial point is that the proposed PIP changes will impact those who receive carer’s allowance. If a claimant no longer qualifies for the daily living component when the new guidelines come into force, they will also lose their direct access to carer’s allowance. That loss could be as much as £10,000, and will change the whole scenario for the carer and the family—the impact will be incredible.

I know what the Government are doing, but they have to look at things and make some changes. My fear has always been that the people they will hurt the most will be the people who can least accept it. I am interested in hearing the Minister’s thoughts on what benefits the proposed changes to PIP will bring about. Those who will suffer will be not only PIP claimants, but carers and, ultimately, families.

We must do better for our constituents who sacrifice to help others. As a representative for Strangford, in Northern Ireland, I know the impact on my constituency and right across the Province, where there is currently no carer’s leave legislation. I look to the Minister in a beseeching way, and because, as a Minister, he has all the answers—so no pressure at all—on the matters on which we need some succour and support. I hope he will engage with his counterparts back home in the Northern Ireland Assembly and with Government colleagues to discuss what more can be done to support our carers. That is why we are here: to support our constituents and do our best for them. If that is something that we can do better after today, this will have been a debate well worth having.

Venture Capital: Access

Jim Shannon Excerpts

Tuesday 13th May 2025 Westminster Hall

[Sarah Olney (Richmond Park) (LD)]

I beg to move,

That this House has considered access to venture capital for people from ethnic minority and other underrepresented backgrounds.

It is a pleasure to serve under your chairmanship, Sir Jeremy. Venture capital in the United Kingdom is a unique and valuable industry that supports many smaller innovating companies with high growth potential. Our VC market accounted for £8 billion of investment in 2023. It is the largest VC market in the world after the US and China, and the largest in Europe by a considerable margin. As the CEO of the UK’s trade body for venture capital, the British Private Equity and Venture Capital Association, eloquently put it:

“Venture investment helps turn ideas, research and development into thriving businesses, generating economic growth, stimulating innovation and creating jobs and opportunities across all nations and regions in the UK.”

However, while our VC market is growing and strong, it is highly inequitable. For ethnic minorities, women and many other communities which there is either insufficient data or insufficient time to discuss today, our system of venture capital does not work. Businesses with founders from those communities receive a disproportionately lower percentage of VC deals and of total VC funding. With their priority of growth, the Government must do more to ensure that the venture capital market in the UK is inclusive and accessible.

[Jim Shannon (Strangford) (DUP)]

I commend the hon. Lady for securing this debate. In Northern Ireland we have the Minorities Recognition Awards, which launched the innovators grant competition for ethnic minorities in Northern Ireland. It has been a successful collaboration that offers entrepreneurial individuals from ethnic minority backgrounds who are resident in Northern Ireland and have a novel business idea a choice to apply for a grant of some £10,000 to further develop their ideas. But to make it go further and work better, does the hon. Lady agree that the devolved institutions could benefit from further funding for the likes of these grants to potentially bridge funding gaps and ensure that people from all backgrounds can have the opportunity to succeed? I believe that many people have that ability.

[Sarah Olney]

I entirely agree that we need to do more to bridge that gap. I am delighted to hear about some of the efforts already being made towards that goal in Northern Ireland.

In 2022, 10% of first-time equity deals went to all-ethnic minority teams, with 19% of total investment value. However, while I welcome the broadly representative nature of these first-time equity deals, they are unequally distributed within ethnic minority communities, with only 0.24% of venture capital funding between 2009 and 2019 going to black founders. On a similar note, all-white teams accessed a mean investment of £224,000, whereas teams with one or more ethnic minority founders received an average of £49,000. All-ethnic minority teams received an average of £94,000—less than half of what all-white teams received.

I am proud to be a member and former chair of the all-party parliamentary group for ethnic minority business owners, which has not only supported ethnic minority business owners, but considered the intersection of diverse characteristics, including gender and ethnicity, on access to finance, which I will come on to later. I am proud to welcome Diana Chrouch, who provides the secretariat for the APPG and does amazing work on behalf of ethnic minority founders.

I am pleased to note the recent successes in the financial industry. In particular, I welcome the work of the Lending Standards Board on creating their access to financial services for ethnic minority-led businesses code. While that was an important and significant step towards greater equality, the Lending Standards Board does not directly cover venture capital, instead covering other financial instruments for investment. With the LSB acting as living proof that positive change can happen, and given the statistics I have mentioned, it is time for the Government to step up and ensure that that success is replicated in venture capital, and that we can tackle the inequality within VC.

Lack of equality for venture capital investments is not only an issue in relation to ethnic minority communities; female founders are also far less likely to secure this kind of investment. In 2022, a report by the British Business Bank found that only 13% of first-time equity deals went to all-female founder teams, representing 6% of total investment value, and that there had been no statistically significant improvement in this during the past decade. The data is even more worrying for women from ethnic minorities: only 0.02% of the total amount invested through VC went to black women entrepreneurs. One of the most damning statistics of the inequality within the venture capital system is outlined in a 2023 British Business Bank report: only 3% of individuals in senior investment and non-investment positions were women from ethnic minority backgrounds, and concerningly, zero black women were found in positions of seniority in VC firms at the time of the study.

I am sure that many of us are aware of this as an issue affecting founders and business owners across the country. However, this inequality was highlighted to me by a constituent of mine in Richmond Park, who is the founder of Parli-Training, a business that has supported the Northern Irish and Scottish devolved Governments, NATO and even parliamentary offices in this very House. In the years leading up to and including 2024, it employed 170 people and, at its peak, generated a £250,000 in turnover. Despite that strong performance over many years, my constituent, who is a woman from an ethnic minority community, was recently denied investment from the Greater London Investment Fund. In her correspondence with the fund manager, she was told that the fund would not be viable for someone like her because she would be viewed as a risk, that those who access the funds usually come from wealthy backgrounds, and that the only funds available to female-led businesses in London usually take the guise of a grant. My constituent was told that she should try to find a grant that suited her business, or start a GoFundMe. Clearly, something has gone wrong.

Of course, a long discourse on the issue at hand can only go so far. What entrepreneurs from affected communities need is for the Government to take meaningful action to ensure that the UK’s venture capital industry is accessible and inclusive. The first thing we need is greater transparency in the reporting and recording of data, particularly for venture capital deals. That has been championed by many leading voices in the venture capital sector and by the APPG for ethnic minority business owners.

Ladi Greenstreet, CEO of Diversity VC, has said:

“There is a significant amount of power in reporting. Simply measuring the problem creates momentum for change”,

whilst the July 2023 British Business Bank report stated:

“Venture capital firms should participate in industry-wide surveys and make D&I data on their investments public”—

an effective action to improve diversity.

Furthermore, a November 2023 report by the British Business Bank in collaboration with other leading trade bodies outlined the

“scarcity of comprehensive data on ethnic minorities particularly at the intersection of gender and ethnicity.”

One measure that I hope the Government will consider is integrating the reporting of diversity data within venture capital tax reliefs. As recommended by the Treasury Committee’s 2023 report, provision of diversity statistics as a requirement for eligibility to receive the enterprise investment scheme or the seed enterprise investment scheme tax reliefs and the venture capital trust tax reliefs may be an effective way to improve reporting statistics, and to push companies to act on this important issue.

Secondly, I urge the Government to take more robust action to support women in finance and venture capital, including through the Treasury’s women in finance charter and the British Business Bank’s investing in women code. Despite their success, the schemes continue to be voluntary initiatives with relatively low levels of uptake, meaning that their progress in improving diversity in venture capital is too slow and restricted. For instance, the women in finance charter is currently signed by 400 companies covering 1.3 million employees, but there are more than 80,000 companies and 2.5 million employees in the UK’s financial services industry. On the other hand, signatories to the British Business Bank’s investing in women code accounted for 47% of venture capital deals, meaning that over half of VC deals would not fall under the code. Therefore, I echo the calls made by the Treasury Committee in 2023: will the Government consider mandating the Treasury and the British Business Bank to adopt a “comply or explain” policy with regard to both the WFC and the IWC?

I should note that the Treasury Committee also outlined that, should diversity statistics and reporting not improve quickly enough, it would be wise to consider calling for compulsory membership instead. With these changes, the Government can strengthen existing processes to ensure that women are not negatively impacted.

Another key call from groups including the British Business Bank concerns diversity at the top, referring to the lack of diversity in key bodies, including investment committees, which often have ultimate decision making on where capital is allocated. Too often, investment committees are made up of members with similar characteristics and backgrounds, leading to groupthink and the preservation of the status quo—a status quo that we know is inequitable.

In its July 2023 report, the British Business Bank recommended pushes for greater diversity in these leading committees as a crucial opportunity for greater accessibility and inclusion, with a correlation between diverse investing groups and diverse investment recipients. As recommended by the APPG for ethnic minority business owners, would the Minister consider requiring VC firms to adopt and implement a strategic investment inclusion framework, modelled after the Lending Standards Board framework, to dismantle structural barriers?

In conclusion, the Government have said that their priority in this Parliament is growth, but what good is growth if it is not accessible to all our communities? We are cutting ourselves off from a key source of that growth if we continue to enable barriers to accessing investment for all the excluded groups I have mentioned. The Government are committed to supporting businesses, but what good is that commitment if a number of businesses are excluded, whether deliberately or not, from finance and investment?

Our venture capital system continues to be unrepresentative of our communities, and the Government must do better to tackle the issue. The Government have long championed themselves as a Government of change, but many entrepreneurs looking for venture capital have so far seen more of the same from this Government. I hope that the Minister has heard the points made in this debate and takes meaningful steps to resolve the injustice we see in our venture capital industry, which hinders businesses, damages growth and continues a legacy of inequality.

US-UK Trade Deal: Northern Ireland

Jim Shannon Excerpts

Monday 12th May 2025 Commons Chamber

[Madam Deputy Speaker (Caroline Nokes)]

With what I am sure will be a pithy final question, I call Jim Shannon.

[Jim Shannon (Strangford) (DUP)]

You have set me a challenge, Madam Deputy Speaker. I thank the hon. and learned Member for North Antrim (Jim Allister) for securing this urgent question. It is so important to talk about this issue in this place. It has caused considerable problems for my Strangford constituents. In particular, I mention three distilleries—Echlinville, Rademon and the Hinch—but many other businesses are affected, too. How does the Minister plan to address the tariff differentials that may arise for Northern Ireland following the UK-US trade deal? It may see any EU retaliatory tariffs on US goods being applied to US goods entering Northern Ireland, potentially creating an Irish sea border for US goods.

[Jonathan Reynolds]

There is only one Member for Strangford, and no one could mistake him for anybody else in asking a question of that sort. He asks about the definition of whether goods are at risk of entering the single market when they come into Northern Ireland. That is based on a percentage differential in the tariff between the United Kingdom tariff rate for a good or tariff line and that for the EU. I believe that a 3% differential puts a good coming into Northern Ireland potentially at risk and therefore considered for the higher tariff up front. In this case, that would be the EU one, and it would then be reimbursed. I understand that it is a more complex position for businesses in his constituency than for many other things, but we have to make this work. We have to be committed to working with businesses in his area, in Northern Ireland and in the wider United Kingdom, and specifically with political leaders, to ensure that we are getting this right. I am hearing, and I have heard many times, about how we can make that system smoother, more reliable and more efficient. We will take that away and work with our colleagues to do that.

However, the system in place is balancing many different competing pressures, and there are no obvious or easy solutions. I was a parliamentarian when we went through all the potential outcomes when a different party was in charge. Let us make it work. Let us listen where we need to improve things, but let us recognise that this agreement fundamentally addresses some of the core problems that existed when this country chose to leave the European Union.

Automotive Manufacturing: Employment

Jim Shannon Excerpts

Wednesday 7th May 2025 Westminster Hall

[Rebecca Paul (Reigate) (Con)]

I beg to move,

That this House has considered Government support for employment in the automotive manufacturing sector.

It is a pleasure to serve under your chairmanship, Sir John. The automotive industry is an important part of the UK economy, contributing £93 billion in turnover and £22 billion in value added. It invests around £4 billion each year in research and development and employs around 0.8 million people across the wider industry. Many of these are high-skilled, high-paid jobs, of which a considerable proportion are outside London and the south-east, but I am pleased to say that some of these high-value jobs are in the south-east, in places like my constituency of Reigate.

In Burgh Heath, just down the road from Epsom, we find the UK headquarters of Toyota. It is not only one of the biggest employers in the local area; it is also an eco-HQ. In a project that started in 2014, Toyota partnered with Kew royal botanic gardens and the Surrey Wildlife Trust to create a landscaped oasis full of native species from the surrounding countryside, complete with an orchard and meadow. It is wonderful to see a business taking the time and energy to ensure its HQ fits into our special corner of Surrey.

And it does not stop there. Outside the site, Toyota has supported many local initiatives, from providing rooms for community meetings to providing buses for local groups and charities. In 2024, more than £40,000 in grants were given to support the work of local groups, including, to name just a few: the Brigitte Trust; Home-Start Epsom, Ewell and Banstead; St Catherine’s hospice; and Warren Mead school parents and friends association. Before I talk more broadly about the automotive industry, I want to take the opportunity to thank Toyota GB for its significant contribution to the Banstead, Burgh Heath and Epsom area.

The automotive industry is important to this country and our economy, and it is vital that it is not smothered by over-regulation, over-taxation and green initiatives. Only by creating an environment that is conducive to growth will we see the creation of more high-quality jobs. UK car and commercial vehicle production saw a significant decline of 11.6% in February 2025. Worryingly, that marks the 12th consecutive month of declining car production. This must be an important wake-up call. More must be done to protect the automotive industry we already have, to help it grow and to encourage inward investment in new plants and new technologies. It can only continue to create new jobs and innovative technologies with growth-supporting policies.

The automotive industry accounts for over 12% of total UK goods exports, generating £115 billion of trade in total automotive imports and exports. Eight out of 10 cars produced in the UK are exported overseas to 140 different countries, but automotive manufacturers now face additional US tariff costs of around £1.9 billion, which will have a significant and detrimental impact on the industry. The USA is the UK’s second largest car export market after the EU, with exports of over 101,000 units in 2024. These tariffs have material implications for competitiveness, investment and export potential, and it is vital that the Government’s policymaking reflects this new protectionist and uncertain environment. With this massive setback to the industry, it is now even more important that we get things right domestically, to create an environment that stimulates growth for this important industry. I want to raise some of the biggest challenges here in the UK, and I ask the Minister to confirm her plans to address them.

In simple terms, for an industry to thrive, it needs to be able to manufacture products at competitive cost, employ people with the skills it needs, have free access to a market for its products without barriers or restrictions, and not be taxed to high heaven, so that it can reinvest in innovation and growth. A good product will always do well. If it is something someone needs, if it provides value for money and if it makes their life easier, they will buy it—it really is that straightforward—so let us talk about the zero emission vehicle mandate challenge first.

The ZEV mandate sets out the proportion of new zero emission cars and vans that manufacturers are required to produce each year up to 2030: 80% of new cars and 70% of new vans sold in Great Britain must be electric vehicles by 2030, increasing to 100% by 2035. Part of the reason for introducing this policy was to provide investment certainty for the charging sector to expand the network, given that lack of charging points is one of the things that puts consumers off buying an electric car. There can be no doubt that it is a well-intentioned policy, but as the old saying goes, the road to hell is paved with good intentions.

Notably, the moving of goalposts by Governments of various colours in recent years has been deeply unhelpful. The previous Government made the decision to delay the ban on new diesel and petrol cars by five years, from 2030 to 2035, whereas the new Government have reversed that. Putting aside the question of which position is the correct one, such chopping and changing is not fair on the automotive industry, which needs certainty and consistency so that it can deliver what is expected of it while still growing its businesses.

I do, however, recognise the Government’s recent announcement about increasing the flexibility of the ZEV mandate, which is welcomed by the industry and shows that the Government are listening. In particular, I welcome the reduction in fines for missing targets and the allowance for all forms of hybrid cars until 2035. However, I would suggest that the whole approach in this area needs to be reconsidered as a priority. Tinkering is not enough.

The ZEV mandate targets are incredibly challenging for businesses to meet. It makes no sense to expect businesses to dictate what products their customers should buy, when we all know that consumer preference and need should drive the products that a business sells, and rightly so. In 2025, ZEV sales will need to increase by 43% for cars and 171% for vans for automotive businesses to achieve the mandate targets. That is not achievable, and a fine of £12,000 per vehicle is levied on those businesses for every missed EV sale.

The automotive industry cannot win on this one. Consumers are not ready to buy EVs yet, because of the lack of charging infrastructure, the battery range issues and the cost, but the automotive businesses will be held responsible and expected to pay the price. If we continue in that way, we will see contraction of the industry, plant closures and job losses, all in the name of net zero. That has already started, with Vauxhall owner Stellantis announcing plans to close a van factory in Luton that employs around 1,100 people.

The industry has already invested billions in bringing more than 130 ZEV models to market. Despite spending some £4.5 billion in market support for EVs in 2024, it still missed last year’s target by some way. Such a level of support from industry is unsustainable and is diverting resources away from investment in new technology, models, plants, and research and development. I urge the Government to take responsibility for their role in delivering charging infrastructure and lowering energy costs, rather than beating businesses over the head for their own failings.

I also urge the Minister to review the mandate targets as soon as possible and to consider other, more effective ways of driving growth in EV take-up. It would make much more sense to incentivise consumers, rather than penalising businesses. The ZEV mandate targets cannot magically drive demand out of thin air. What we need is more carrot and less stick.

Has the Minister considered such alternative options as reducing the VAT on EV sales and public charging, or offering plug-in grants for cars? Those could be straightforward and effective ways of boosting consumer demand. If the Government are wedded to the current draconian ZEV mandate approach, the fair thing would be for them to commit to delivering public charging infrastructure on equivalent targets.

For example, in 2025 the target is for 28% of new car sales to be electric, so the Government must ensure there are sufficient public charging points across the UK to serve those new EVs by the end of 2025. If the Government fail to do that, the shortfall should be offset against the fines levied on the automotive industry, reducing what it has to pay. Surely that is fairer. The Government need to play their role and must also be held to account when they do not deliver.

Before moving on, I want to touch on domestic energy prices, which apply to all manufacturing industries, not just automotive.

[Jim Shannon (Strangford) (DUP)]

I commend the hon. Lady for securing the debate. I did some research on the industry back home in Northern Ireland, and I am sorry that I cannot make a speech because I have sponsored an event at 10 am, and it cannot happen if I am not there.

We have a vibrant automotive sector in Northern Ireland that provides some 11% of employment and 13% of gross value added. That is down not just to Wrightbus, which has great sales across the United Kingdom and further afield, but to the rest of the automotive industry in Northern Ireland. Does the hon. Lady agree that the Government need to step up in supporting businesses and helping research and development? We have the skills, but we need the support, and today’s debate is a significant step forward for the industry across this great United Kingdom. Research and development is on the mainland, yes, but it is also in Northern Ireland. The Minister knows that already and, I suspect, is already on it.

[Rebecca Paul]

I agree with the hon. Member on the importance of supporting businesses. We must make sure that we remove obstacles and barriers that hinder growth. I hope that conversation starts today and that we can get to a better place where we support our amazing automotive industry, which delivers so much for this country, including Northern Ireland.

Energy costs must come down. The industry cannot manufacture at a competitive cost with energy costs being so high compared with what other countries pay. We must not shoot ourselves in the foot with a net zero obsession. We must make sensible decisions on the energy mix to ensure energy security and value for money so that our manufacturing industry can compete on the global stage. That means investing in nuclear and not making the mistake of thinking that solar and wind are a silver bullet.

I urge the Minister to share her views on how she intends to reduce energy costs for manufacturing industries in the short to long term so that they are better able to compete. I recognise that some of this goes across many briefs, so I appreciate that this is not something over which she has full control.

Another important challenge is ensuring that we have a skilled workforce. Research by the Institute of the Motor Industry suggests that around 107,000 additional technicians will be needed by 2030. That is an amazing opportunity for this country. The more the industry grows, the more jobs and opportunity there will be, but we must ensure that we have people here with the skills to take up the jobs to ensure the industry’s success.

That is why it is so important to support apprenticeships, which are a great way for young people to gain the skills they need while working. A survey from the Society of Motor Manufacturers and Traders in February 2025 found that the UK automotive sector will increase apprenticeship numbers by 16% in 2025, with opportunities spanning manufacturing, supply chain logistics and vehicle maintenance. The most in-demand roles are design and development engineers, EV technicians and specialists in batteries and power electronics. That equates to over 700 new apprenticeships available among UK automakers.

I want to take this opportunity to mention East Surrey college in my constituency, which offers full-time and part-time qualifications in vehicle technology, maintenance and electric/hybrid vehicles. I recently visited and was impressed by the expert teachers, the well-equipped workshops with industry standard equipment, and the very talented and engaged students. We must ensure that we provide the right courses so that people with the right skills will be available to fill job opportunities in the industry. East Surrey college is certainly playing its part.

I ask the Minister to clarify what the impact of abolishing level 7 apprenticeships will be on the automotive industry and how she plans to mitigate any detriment. Additionally, I urge her to consider how the new Government’s Employment Rights Bill will impact on the automotive industry. In February 2025, a Motor Ombudsman survey found that 58% of businesses reported difficulty in recruiting qualified technicians to meet growing workload, and that those difficulties would be made worse by the Employment Rights Bill, which is causing businesses to re-evaluate their hiring strategies.

It is vital that the UK remains competitive and that the industry is not further burdened when it already faces so many challenges. It is clear that the rise in employer national insurance contributions is putting additional pressure on the automotive industry, with a cost of £200 million. The increased cost of doing business in the UK will reduce inward investment, economic growth and ultimately jobs. The Institute of the Motor Industry stated:

“These changes are likely to have a significant impact on costs for small businesses that operate in the automotive sector, which is already facing a skills gap of 20,000+ vacancies.”

It went on to say that the additional costs will

“dampen investment in training and continuous professional development”.

If the Government are really committed to boosting job opportunities and growth in the automotive sector, they need to reflect on some of their recent policies. Just saying that growth is a priority does not make it so. They need policies that do not put obstacles in the way.

Lastly, I want to raise the challenge of taxation. In the interests of time I will not speak in detail, but the automotive industry has raised concerns about recent announcements on proposals to ban employee car ownership schemes and changes to capital allowances and benefit-in-kind treatment for double-cab pick-up vehicles. The SMMT is concerned that those changes will

“undermine the market, hit profitability and viability and have serious consequences for UK tax returns, automotive OEMs and their employees, and sole trader/small business operations.”

Will the Minister confirm whether there are any plans to remove or adjust the vehicle excise duty expensive car supplement?

That is enough from me for now. I will bring my comments to a close so that anyone else who wishes to contribute has the time to do so. I thank all hon. Members for attending the debate and showing their support for the automotive industry.

Energy Prices: Energy-intensive Industries

Jim Shannon Excerpts

Thursday 1st May 2025 Commons Chamber

[Sarah Jones]

There was no coherence under the previous Government, and there will be coherence under this Government. We are developing our plan of support for our foundational industries in the industrial strategy. I know that the Opposition are very keen to see what the industrial strategy will contain. They will have to wait a few weeks for its publication, but all will be revealed in due course.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister very much for her answers. Manufacturing currently represents less than 10% of the UK economy, but in Northern Ireland it represents 16% of the economy and about one in four families in Northern Ireland are dependent on manufacturing. It is clear that, as energy prices rise, so do the concerns for such industries. How can the Government and the Minister offer support to those industries to retain their viability while the Government are finding an energy solution?

[Sarah Jones]

The hon. Member is right to raise this issue, and the figure for manufacturing in Northern Ireland of 15% or 16% is high. Yesterday, I was with trade unionists from Shorts Brothers—Spirit AeroSystems —to talk about the importance of manufacturing there and the importance of retaining those jobs. They made the point that these good jobs have helped not just with people’s lives, but with the sectarian divides. Bringing people out of poverty and giving them good, well-paid jobs is an incredibly important part of the history of Northern Ireland and of what we need to preserve there. I will continue to work with him to make sure we protect that manufacturing base. We of course had huge support in the Budget, with the £2 billion for the automotive sector and the £1 billion for the aerospace sector to support exactly that manufacturing industry.

Oral Answers to Questions

Jim Shannon Excerpts

Thursday 1st May 2025 Commons Chamber

[Sarah Jones]

I do not want to underestimate the challenges that the chemical sector faces. Between 2021 and 2024, UK chemicals manufacturing fell in real terms by about a third. We are working to improve the UK’s trade and investment relationship with the EU. We want to build exports and investment opportunities and reduce barriers to trade. Conversations are at an early stage, so I will not go into specifics, but we are certainly working to help the chemicals industry.

[Jim Shannon (Strangford) (DUP)]

What assessment has the Minister made of the benefits that inclusion of the chemicals sector among the eight sectors could bring for our national security and our pharmaceutical sector? How can all regions of the United Kingdom of Great Britain and Northern Ireland benefit from this sector?

[Sarah Jones]

When we look at the eight sectors that we are trying to turbocharge through the industrial strategy, we see that the chemicals sector underpins so many other sectors. We need to make sure that we protect it. As I have just said, chemicals manufacturing has fallen by nearly a third over the past three years; we need to turn that around. We are looking at what we can do to break down barriers and make improvements—for example, on the cost of energy. That is part of the mix when it comes to making sure that we are secure in the future.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)]

I had to wait 50 minutes for a question, Mr Speaker, but this is an important one and I share the hon. Member’s concerns. We regularly meet Ofcom to discuss the performance of Royal Mail, and I will certainly write to him about the discussions we have in respect of his constituency.

[Jim Shannon (Strangford) (DUP)]

What discussions has the Minister had with his counterpart in Northern Ireland about encouraging young people into casual hospitality employment, to teach them about the benefits of work and the importance of managing money?

[Jonathan Reynolds]

I am always grateful to the hon. Gentleman for his questions. We always seek to keep colleagues in Northern Ireland well briefed on a range of issues, particularly some of the complexities around trade that have come out of the Windsor agreement and need to be managed carefully. I do not think I have had a specific conversation about the matter he raises, but this is a good opportunity to say that I think I should, and I will. I am grateful to him for getting that on the record.

Hair and Beauty Sector: Government Policy

Jim Shannon Excerpts

Wednesday 23rd April 2025 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

It is a pleasure to serve under your chairship, Ms McVey. I commend the hon. Member for Hornchurch and Upminster (Julia Lopez) for securing this debate. If you looked at me, Ms McVey, you would say that a beauty person could be working all day on that guy without making much difference. There is nothing on the top of my head, so when it comes to going to the barber’s it does not take me too long. I say that in jest: I am speaking in this debate on behalf of the constituents who have contacted me.

As the hon. Member for Hornchurch and Upminster and others mentioned, we are inundated by messages from local businesses and the consumers that they provide services to. According to the National Hair and Beauty Federation, there were more than 61,000 hair and beauty businesses operating in the United Kingdom in 2023. The hair and beauty industry is largely represented by small businesses. Those small businesses have mostly female owners, operators and workers, but not all. Three quarters of businesses employ fewer than five people, while 95% employ fewer than 10. Of people working in the beauty and hairdressing industry, 60.5% are self-employed—it is a specific group of people. There is also a downward trend: the industry has declined by 7%. Apprentices have also declined, as the hon. Member for Hornchurch and Upminster referred to, and some businesses are not taking apprentices on. Those are the issues.

The personal care and beauty industry as a whole grew its contribution to the UK economy by 11% in 2023, so there has been an upward trend in the businesses and what they do. Beauty and hairdressing is worth £5.8 billion, and it makes up a considerable chunk of the sector’s overall contribution to the economy. People tell me that it should be noticed that, for the large majority of hair and beauty businesses, turnover is less than £100,000. In its September 2024 industry survey, the NHBF found that 46% of salons and barbers surveyed made a profit, 41% made none—they broke even—and the rest just weren’t doing.

Those are not healthy statistics. The hon. Member for Hornchurch and Upminster was absolutely spot on when she outlined that business owners are facing a perfect storm of rising costs, including the withdrawal of business rates relief, the increase to employer national insurance contributions and higher minimum wages. Although people are happy to spend their hard-earned money on self-care, the industry struggles with profitability and needs more support. I look forward to what the Minister will say, because it is important we get this right.

The rise in the national minimum wage, the rise in national insurance contributions and increases in the goods supply price are leaving the industry with profit margins of a mere 2% to 3%. That is unsustainable. We need to correct it and offer support to small businesses and microbusinesses. I look to the Minister to see how we can help keep our beauty and hair businesses thriving, keep people in employment and keep people feeling good about themselves. That can be done only with greater support than is available right now. My wife says that when she goes to the hairdressers, she comes out and feels like a million dollars. I would say that she always looks like a million dollars, but that is just me.

[Esther McVey (in the Chair)]

You sweet-talking devil.

British Steel

Jim Shannon Excerpts

Tuesday 22nd April 2025 Commons Chamber

[Madam Deputy Speaker (Judith Cummins)]

I call Jim Shannon to ask the final question from the Back Benches.

[Jim Shannon (Strangford) (DUP)]

Thank you very much, Madam Deputy Speaker. I thank the Minister for all her hard work, and I thank the Secretary of State, the Prime Minister and the Labour Government for their commitment to, and for saving, British Steel. There is no one in this great nation of the United Kingdom of Great Britain and Northern Ireland who is not aware of that and does not welcome it, so well done.

I welcome the Minister’s statement, but can she confirm that developers and those in the construction sector in Northern Ireland, where steel is really important, will be able to secure steel as a certainty, and at a reasonable price? Can she confirm that they will not be tempted to outsource for fear that orders will not be fulfilled, because British steel will be accessible, viable, ready and available to those in Northern Ireland who wish to use it?

[Sarah Jones]

I thank the hon. Gentleman for his words of appreciation. The construction sector is incredibly important when it comes to steel. We are looking at every measure we can take to ensure that people can buy British steel in a way that is competitive and useful for them. We are looking at procurement and at other measures to make the sector more competitive, but the hon. Gentleman is absolutely right that British Steel provides huge amounts of steel for the construction sector, and we want that to continue.

Horizon Redress and Post Office Update

Jim Shannon Excerpts

Tuesday 8th April 2025 Commons Chamber

[Gareth Thomas]

I recognise that my hon. Friend has been campaigning hard to save Morley post office; he has certainly made clear representations to me about it. The starting point for discussions about the future of postal services, in Morley as elsewhere, is that post offices will be replaced by a main post office offering Government services as well as traditional post office services. If he has particular concerns about the way the transition is happening, he is welcome to get back in contact with me.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister for his answers and commitment to addressing these issues. The Post Office Horizon scheme was deeply flawed from the outset, and we cannot trust Horizon to provide evidence for postmasters or postmistresses when the entire scandal is based on Horizon’s unreliability. Does the Minister not agree that we have no option other than to trust the people, not the computer, and that we must do the right thing by the people who have been vilified?

[Gareth Thomas]

I absolutely pay tribute to the journalists and campaigners who exposed the Post Office scandal, and who continue to campaign for those who have not yet received redress. I had the privilege of meeting a number of sub-postmasters who were very badly affected by the scandal, and those conversations will stay with me for a very long time, and I suspect that the same is true for other Members who have had similar conversations. They are powerful, motivating conversations that will help this to get sorted out.