Department for Business and Trade

John Cooper Excerpts

Wednesday 5th March 2025 Commons Chamber

[John Cooper (Dumfries and Galloway) (Con)]

I, too, am a member of the Select Committee.

Perhaps no other Department has an impact on the lives of so many Britons. The economy affects each and every one of us, and when the Government’s No. 1 priority is the fastest sustained economic growth in the G7, then—to use football parlance—the Chancellor is the midfield general and the Department for Business and Trade is the big striker in the opposition box. The rest of us—all of us—have a spot on the terraces, but oh dear! We have barely kicked off, and we are pinned in our own half.

Where is business confidence, given that less than a quarter of the businesses that cheered Labour on, signing a letter ahead of the election, are still waving their red scarves? One said that it now feels “duped”. What of the financial back-up? The eye-catching headline figure in the supplementary estimates is that the Department has been allocated a total funding increase of £1.8 billion, yet that money is largely earmarked for Post Office compensation. It is absolutely right and proper that the victims be compensated quickly, but there should be no pretence that the money is a shot in the arm for DBT.

Although the extra £440 million for the British Business Bank is good news, is it enough? This country lacks not for start-ups but for scale-ups, and we hear time and again that a lack of finance from risk-averse banks is the block. Scale matters. The Business and Trade Committee heard only yesterday that although work by the previous Government had created an ideal environment for the emerging technology of quantum computing, Britain has earmarked a few billion pounds for the sector—impressive, until one hears that the United States is injecting over $50 billion. The US’s R&D spend alone is perhaps seven times our total budget in this field.

No Government are ever in full control of events, and the storms of war are howling. Even as this Government’s industrial strategy is being shaped, defence is now the utmost priority. If we as a nation are not secure, we are not a nation. Wars are fought in trenches and on myriad battlefields, but they are won in boardrooms and on the shop floors and shipyards of industry. Economic growth, then, is a key arrow in the British quiver. But do these estimates give us hope for growth? Rather than confidently striking out for new global deals, Britain today looks like a cork in a storm-tossed sea—at the mercy of events, and not their master.

On a Business and Trade Committee visit to Brussels, we explored what the Government might expect of their much-vaunted reset of relations. Troublingly, Britain lacks for any clear definition of its ask beyond warm words about defence and security, yet the EU, being made up of good protectionists, already has an invoice drawn up.

We have acceded to the comprehensive and progressive agreement for trans-Pacific partnership—that is not easy to say, especially with these teeth. It covers a bloc of over 500 million people and includes countries such as Australia, Canada, Japan and Singapore, and economies that are ripe to bloom, such as Vietnam and Malaysia, in contrast to the sunset economies of Europe, which have sclerotic growth. Yet we are told that trade deals take up British GDP only marginally. We lack ambition.

[Alison Griffiths]

I want to follow up on my hon. Friend’s comment on international trade. Does he agree that the Government currently lack the capability to support businesses appropriately in international trade?

[John Cooper]

I completely agree that much more needs to be done on international trade. As I said, we lack ambition in this field, because we base so much of what we expect on previous deals. Frankly, there has never been a deal like CPTPP, the putative deal with India and the dripping roast that is a free trade deal with the US.

The Department for Business and Trade needs to step up, not be beaten before we even start. Growth is the destination that we in this House should all agree on; the path there is where the disputes lie. We are in an economic relegation zone after a dud Budget. Can the Department for Business and Trade help pull off the shock result that we all need? Britain’s got talent, and the Department for Business and Trade can boost it.