Budget Resolutions

Jonathan Reynolds Excerpts

Wednesday 6th November 2024 Commons Chamber

[The Secretary of State for Business and Trade (Jonathan Reynolds)]

It is a pleasure to open this final day of the debate on the Chancellor’s growth Budget. Can I welcome the new shadow team? It is lovely to see them in place. I think many of us on this side would admit that we were shadow Ministers for longer than we ideally would have been, and I know that it is a tough and thankless job at times. On a personal level, I wish them well for the future.

As the Chancellor rightly stated, growth is our only path to prosperity, to increasing living standards and to delivering the change that the British people voted for so decisively over the summer, and we on these Benches recognise that we cannot have growth without investment. Growth demands investment in our infrastructure, into our public services, into the cities and regions that have gone overlooked and under-invested in by past Administrations, and that is what this Budget chooses. It chooses investment over decline, with more than £100 billion of public investment into our roads and our railways, our parks and our playgrounds, our schools and our surgeries—all the things upon which a successful economy and a healthy society depend.

This was a Budget for affordable homes, for the NHS, for the school rebuilding programme and—a personal priority for me as MP for Stalybridge and Hyde—for the trans-Pennine route upgrade, including a new station at Mossley, which is something I am sure the whole House can be excited about and get behind. This is literally rebuilding Britain in action, and make no mistake, businesses need that public investment too, because it creates the right environment for them to thrive now and long into the future. That is why the Office for Budget Responsibility says that our increases in spending will drive up the long-term increase in GDP by up to 1.4%.

[Kit Malthouse (North West Hampshire) (Con)]

The Secretary of State makes much of growth. Of course we all want growth, but the OBR report actually says that growth in real GDP will start to slow over the next three years and that in years four and five of the Parliament it will go negative. It is telling us that the Government’s Budget is actually going to result in a smaller private sector, not a larger one. How is he going to explain that to business?

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[Jonathan Reynolds]

That is not what it says. First, on the figures, we cannot make a like-for-like comparison because we know that the information provided by the previous Government in their financial information was erroneous. They did not square their own spending pledges with what was in those documents. The analysis by the OBR shows that long-term improvement in GDP growth is vital, but the right hon. Gentleman will recognise that it cannot model some of the wider parts of the Government’s agenda. It cannot model those changes in the planning system that are so important to the Government. It cannot model the changes involved in having a long-term industrial strategy. It cannot model our changes to trade policy.

I recognise that there is more to do to prove the case of the Government’s overall commitment, but I can tell the right hon. Gentleman that fundamentally fixing the foundations, honesty and stability in the public finances, and a focus on long-term public investment are essential to the long-term growth of the country. Also, one thing that has not had sufficient recognition is that many of the real benefits of greater public investment do not accrue in this Parliament; they accrue beyond it, and it is about time we had some long-term focus again in this country. Not before time, if I may say so.

[Graham Stuart (Beverley and Holderness) (Con)]

The right hon. Gentleman will, I hope, be aware that the long-term economic growth of this country relies not primarily on public investment or indeed public infrastructure, but on a healthy private sector—the wealth creators from whom we can take the funding to deliver into those goods that he talks about and that are part of a balanced and successful society. This Budget does not help them. It does the opposite.

[Jonathan Reynolds]

I am sorry but, again, the right hon. Gentleman is wrong. I agree with part of his assessment, such as that a strong and thriving private sector is crucial to growth, but I find his analysis a little simplistic. Private firms will say that they also need skilled workers, and that they need a decent transport system so they can get to work.

Under the last Government, I would often get up in the morning and check my phone for updates from people using the trans-Pennine line I just mentioned—the one we are upgrading—and it would be full of people saying, “I cannot get to work.” I need the right hon. Gentleman to make a slightly broader analysis.

Despite the previous Government leaving us with a raging skip fire in many areas—we have to raise money, not to deliver our pledges but to deliver their pledges that they did not properly fund—we have had a regard and a heed for the level of competitiveness in the UK economy. For instance, on the rise in employers’ national insurance contributions, over half of all firms with national insurance liabilities will actually pay less or the same, not only because of the changes to the employment allowance but because of how we have removed the threshold so that all firms now qualify.

Despite the frankly terrible inheritance bequeathed to us, we have done our best to meet those needs and to deliver a long-term focus on the future.

[Jim Shannon (Strangford) (DUP)]

Will the Minister give way?

[Jonathan Reynolds]

I was going to move on, but I cannot resist the hon. Gentleman.

[Jim Shannon]

I hope the Minister will not be disappointed.

There are many good things in what the Government have brought forward, but what is missing, unfortunately, is support for farmers on inheritance tax. Farmers are the backbone of Britain, and they produce almost all the food we eat across this United Kingdom of Great Britain and Northern Ireland. Farmers will be impacted greatly.

I declare an interest as a member of the Ulster Farmers Union and the National Farmers’ Union, and all the farmers I talk to in Northern Ireland have indicated that every farmer in Northern Ireland will be affected by inheritance tax. If the Government want to get it right, the threshold needs to be raised, and it is not too late. Raise the threshold to £4 million or £5 million so that family farms, the backbone of Britain, can continue.

[Jonathan Reynolds]

I always listen to the hon. Gentleman because he is genuine and conscientious in representing his constituency’s interests. I will always listen to what he has to say. We can judge the exact impact of these changes by looking at the value of claims to date. The Conservative party’s analysis has forgotten to aggregate the impact of the changes to those allowances, such as agricultural property relief, alongside the existing nil-rate band and the ability to transfer the allowances between spouses in all cases. The total number of farms across the UK that will be affected by this change is actually only 500 for the 2026-27 financial year. That has been missed, and I remind colleagues that any inheritance tax liability has a 10-year, interest-free payment period. To be frank, there has been some scaremongering from the Opposition, and we have to be clear with people.

We have had to restore economic stability to deliver that investment, and we should not shy away from explaining why this has been so necessary. The previous Government’s scattergun approach to growth left our country starved of investment, economically divided and struggling to maintain a competitive edge in the global economy.

The previous Government’s claim to have delivered the fastest-growing economy in the G7, based on its performance in the first half of this year, is laughably false. I believe that The Sunday Times likened it to someone walking a marathon in six hours but, because they ran the last 100 yards, claiming to be the fastest runner in the world. The truth is that consistency and stability have been sorely lacking. We have had seven growth strategies since 2010 and 11 Business Secretaries in as many years, to say nothing of the UK’s revolving door of Prime Ministers.

[Graham Stuart]

Will the Minister give way?

[Jonathan Reynolds]

I have already given the right hon. Gentleman a go. I will make a little progress, and we will see whether he can do a better one next time.

The result was a protracted period of anaemic growth. Had our economy grown at the average rate of other OECD countries over this period, it would have been £171 billion larger. Imagine the difference that would have made to all of our communities and to today’s Budget debate. British firms, facing such uncertainty, have not seen investing domestically as a sufficiently attractive proposition. They have been reluctant to adopt new technology, to upskill their employees or to plough money into research and development. We have even heard that, in any given year, roughly 40% of UK firms choose not to invest at all. We want to change that for good. We want to give businesses certainty, confidence and stability so that they can make decisions for the long term.

That is why, at the Budget, the Chancellor reaffirmed our new modern industrial strategy. Invest 2035 will be a central pillar of our growth mission. The strategy will allow businesses to plan not just for the next 10 months, but for the next 10 years. It has already won the backing of Make UK, which has told us that businesses will no longer have to

“fear the constant chop and change in policy we have seen over the last decade.”

Instead, they can focus on the long term.

Our industrial strategy will create a strong pro-business environment, making it simpler and cheaper for companies to scale up and invest. It will unleash the potential of our high-productivity services and industries, because our recent economic history has taught us that we have to play to our strengths. Over the last 25 years, high-productivity sectors were responsible for roughly 60% of our economy’s entire productivity growth. Looking at the figures since 1990, over half of the UK economy’s GDP growth has come from just three sectors—information and communications technology, financial and professional services, and advanced manufacturing.

That is why our industrial strategy will channel support to eight key growth-driving sectors, those in which the UK services sector will excel both today and tomorrow—the services and industries that present the greatest opportunity for output and productivity growth over the long term.

[Charlie Maynard (Witney) (LD)]

How does that all gel with the fact that the OBR is saying that business investment will fall by 0.6%, as a share of GDP, by 2029? It sounds great, but it does not add up in the OBR’s eyes. Will the Minister please elaborate?

[Jonathan Reynolds]

We have a similar question. The Government’s wider pro-business changes cannot be modelled by the OBR, and we know that we have to prove them. There is simply no way that we will get to the higher business investment, the higher productivity growth and the stronger economic growth that we need in all parts of the country unless we are honest, robust and responsible with the public finances, as this Budget is and the previous Government were not. If the Budget does not set the trajectory for strong long-term public investment, to leverage in that degree of private investment, we will not have the foundations to succeed. I am so excited by this Budget because it gives us those strong foundations for the future.

[Dr Andrew Murrison (South West Wiltshire) (Con)]

The problem with our economy is that, too often, people build small businesses and then sell them off. They do not sit and develop them before potentially handing them on. Can the Minister explain how the proposed inheritance tax changes will encourage people to take risks in nurturing and growing their businesses in order to pass them on to succeeding generations? Plainly, his suggestion will have the reverse effect and will, therefore, make the situation worse, which will damage growth.

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[Jonathan Reynolds]

I ask the right hon. Gentleman to look at the detail of our plans. From the data held by the Treasury, we can plan for how many firms will be affected, and it is a very small number. In most cases, given the existing inheritance tax nil-rate band, especially where property is involved or where there is a transfer from one spouse to another in the inheritance chain, the allowance is so great that it is already considerably in excess of the average claim for relief in this area.

The right hon. Gentleman is talking about a very small number of firms at the very large end. I think the revenue can be raised in a way that protects the kind of family firms he and I want to see continue to thrive. We all know there are cases where, for instance, people advertise the sale of agricultural land or certain types of investments specifically to avoid inheritance tax, which is not right. That is not good for business. We have to recognise that these fair and proportionate changes will pay for the last Government’s spending commitments. The changes will always have a benchmark for international competitiveness, in a way that the right hon. Gentleman should recognise rather than scaremonger.

At the Budget, as a statement of intent for our new industrial strategy, we saw the Chancellor make the first of many down payments with multi-year funding commitments for these areas of our economy. There will be significant tax relief for our world-leading creative industries, up to £0.5 billion for a brand-new life sciences innovative manufacturing fund, and nearly £1 billion for our aerospace sector to fund vital research and development into jet zero technology, which will boost industries in the east midlands, the south-west and Scotland. There is also £2 billion for our automotive sector, ensuring that the next generation of electric vehicles are designed, developed and built right here in the UK.

At the same time, we recognise that our industrial strategy’s success rests upon working in partnership with mayors and multinationals, councils and CEOs, unions and academics. That is why this Government are championing local growth plans—growth plans for the long term—to be delivered by strong local political leadership, which will work together with the Government to create the right conditions for success.

Crucially, our new industrial strategy will be international from the start, taking learnings from the best of what has been achieved globally so that we enable businesses of all sizes and sectors to thrive in our market. To that end, it will work in lockstep with our trade strategy and our twin-track approach to trade, acceding to the comprehensive and progressive agreement for trans-Pacific partnership and negotiating deals with the Gulf Co-operation Council and India, all to the benefit of British business.

Unlike the previous Administration, we are also making it much easier for UK firms to do business in and with Europe. Although the Opposition might not want to hear it, the EU is not just our closest trading partner but is still our largest trading partner, by quite some margin, yet the previous Government’s adversarial approach to working with the EU—all that incendiary rhetoric—was not conducive to good business. We are changing course, aiming to remove unnecessary barriers to trade, so that British companies will be able to operate more easily in France, Germany, Italy and across Europe.

We are making real progress. Earlier this month, the Prime Minister and the President of the European Commission issued a joint statement to deepen our co-operation on the economy, energy and security. We have agreed to regular EU-UK summits to strengthen our connections in all those areas, including the close business and investment ties that connect our economies.

[Mr Gregory Campbell (East Londonderry) (DUP)]

On the sectors that will benefit, does the Secretary of State agree that the hospitality sector would benefit more from some honesty and openness? The Government announced a 6% increase for people on the minimum wage, many of whom are employed in the private hospitality sector, but while our constituents will pay for that, the Treasury will benefit by hundreds of millions of pounds, because almost all those minimum wage earners will become taxpayers overnight.

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[Jonathan Reynolds]

rose—

[Andrew Griffith]

I will happily give way to the Secretary of State if he wants to explain why he no longer deems it important to invest in these crucial parts of the economy.

[Jonathan Reynolds]

Let us reflect on where we are today—the first day of the constructive Opposition. The new Leader of the Conservative party stood at the Dispatch Box two hours ago and called for both tax cuts and massive public spending on defence. How are you going to pay for projects that you promised but never delivered, and that you knew you could never pay for?

[Madam Deputy Speaker (Caroline Nokes)]

Order. The Secretary of State knows better than to say “you”.

Regulatory Partnership for Growth Fund

Jonathan Reynolds Excerpts

Wednesday 23rd October 2024 Written Statements

[The Secretary of State for Business and Trade (Jonathan Reynolds)]

Today I am announcing a new £2.3 million regulatory partnership for growth fund (RPGF), which will help to unlock export opportunities worth nearly £5 billion for UK companies over five years.

The RPGF will help UK regulators work with international partners to remove trade barriers and shape markets in various growing sectors. The Department for Business and Trade will offer grant funding agreements to UK regulators and standard setting bodies in order to undertake targeted, specific interventions to unlock regulatory market access barriers.

The fund builds on the Prime Minister’s call at the international investment summit last week for UK regulators to support the Government’s growth mission, keep pace with emerging industries and upgrade the regulatory regime to make it fit for the modern age.

This will see UK businesses, including in growth-driving sectors, benefit from almost £5 billion of new export opportunities over five years, with trade barriers worth £300 million being targeted within the first 12 months—equivalent to an average of £135 in exports per £1 invested.

For example, the fund will generate new opportunities for the UK offshore wind supply chain to export their products and services globally; enable the UK’s pharmaceutical industry to more easily sell medicines in markets around the world; and improve the process for accreditation of UK education providers to sell their services abroad.

List of organisations to receive funding

Architects Registration Board (ARB)

Operators of UK National Information Centre for global qualifications and skills (Ecctis)

The Food Standards Agency (FSA)

The Law Society of England and Wales

The National Institute of Health and Care Excellence (NICE)

Offshore Renewable Energy Catapult (OREC)

Quality Assurance Agency for Higher Education (QAA)

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Making Work Pay

Jonathan Reynolds Excerpts

Monday 21st October 2024 Written Statements

[The Secretary of State for Business and Trade (Jonathan Reynolds)]

The Government’s plan to make work pay is a core part of our mission to grow the economy, raise living standards across the country and create opportunities for all. It will tackle the low pay, the poor working conditions and the poor job security that have been holding our economy back. The landmark Employment Rights Bill will benefit more than 10 million workers in every corner of the country.

We have committed to working with all stakeholders on how best to put these measures into practice. As trailed in the Government’s “Next Steps to Make Work Pay” document, published on 10 October, the Deputy Prime Minister, the Work and Pensions secretary and I are today launching four six-week consultations. Subject to the outcome of these consultations, we will consider whether there is a need for any Government amendments to the Employment Rights Bill.

Consultation 1: The application of zero-hours contracts measures to agency workers

The Employment Rights Bill includes measures to deliver our commitments to end exploitative zero-hours contracts by introducing:

A right to a contract with guaranteed hours that reflects the number of hours regularly worked, based on a 12-week reference period; and

a right to reasonable notice of shifts, and proportionate payment for short-notice shift cancellations and curtailment.

The Government believe that all workers, including agency workers, should have the right to guaranteed hours that reflect the hours they regularly work. The Government’s intention is that agency workers should also have a right to reasonable notice of shifts and receive payment for shifts that are cancelled or curtailed at short notice. The unique tripartite relationship between agency workers, employment agencies and hirers makes the application of these measures to them particularly complex. The zero-hours contract measures create new responsibilities for employers. For agency workers we need to decide whether these responsibilities sit with the employment agency, the end hirer or both. The first consultation being launched today seeks to understand how these measures can best apply to agency workers.

Consultation 2: Creating a modern framework for industrial relations

The Government are committed to a new partnership approach of co-operation and negotiation that sees employers and trade unions working with Government to tackle the challenges affecting our economy. Workplaces and working practices have changed significantly over the last decade and the trade union legislation that underpins industrial relations is in need of modernisation. Poor industrial relations have held the UK back from reaching its potential. In 2022, 2.5 million working days were lost due to strikes in the UK. In 2023 it was close to 2.7 million—the most in any year since 1989.

We are committed to developing a framework for industrial relations that will stand the test of time. This consultation is taking those first steps forward, to help us build a positive, modern framework for our industrial relations.

The Government are seeking views on a number of changes to modernise and hardwire negotiation, engagement and dispute resolution into industrial relations. The consultation includes proposals on: simplifying the amount of information that unions are required to provide in industrial action notices; strengthening provisions to prevent unfair practices during the trade union recognition process; securing a mandate for negotiation and dispute resolution; requirements on political funds; extending the expiry of the strike mandate; reducing the industrial action notice period; updating the law on repudiation and prior call; and seeking views on the enforcement mechanism for right of access.

Consultation 3: Strengthening remedies against abuse of rules on collective redundancy and fire and rehire

The Employment Rights Bill expands protections for employees in fire and rehire and collective redundancy scenarios. It does this by banning fire and rehire practices other than when the employer genuinely has no alternative and by ensuring that the right to collective consultation is determined by the number of people impacted across the entire business, rather than in one workplace.

The Government are also committed to reforming the law to provide effective remedies against abuse of the rules on fire and rehire and collective redundancy. The third consultation being launched today seeks views on doing that by increasing the maximum period for the protective award for scenarios where employers have not complied with their collective redundancy obligations, and adding interim relief to collective redundancies and unfair dismissals in fire and rehire scenarios.

Consultation 4: Strengthening statutory sick pay

The Employment Rights Bill includes measures to strengthen statutory sick pay for those who need it most, by removing the existing requirements to serve waiting days and extending eligibility to those earning below the lower earnings limit. The Department for Work and Pensions is therefore launching a consultation to support this ambition, and to ensure that the safety net of sick pay is available for those who need it most.

The changes introduced within the Bill will mean that for some lower earners, including those earning below the lower earnings limit, their rate of statutory sick pay will be calculated as a percentage of their earnings instead of the flat weekly rate. This consultation is seeking views on what this percentage should be, to ensure that it provides a fair earnings replacement when these employees need to take time off work. A copy of the relevant equality impact assessment will be deposited in the Library of the House once available.

Next steps for consultation

This package represents the first phase of formal consultations on how best to put our plans into practice.

As is typical with employment legislation, further detail on many of the policies in the Employment Rights Bill will be provided through regulations, and in some cases codes of practice, after Royal Assent. We expect to begin further consultations on these reforms in 2025, seeking significant input from all stakeholders, and anticipate that most reforms will take effect no earlier than 2026.

As outlined in “Next Steps to Make Work Pay”, there are also commitments in the plan to make work pay that we will deliver via existing powers and non-legislative routes, as well as those which will take longer to undertake and implement. We will begin consulting on some of these measures before the end of the year, including launching a call for evidence on tightening the ban on unpaid internships. The Government continue to work closely with stakeholders to ensure that they can plan their contributions to calls for evidence and consultations as they arise.

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The UK’s Modern Industrial Strategy

Jonathan Reynolds Excerpts

Monday 14th October 2024 Written Statements

[The Secretary of State for Business and Trade (Jonathan Reynolds)]

I am pleased to announce that today, 14 October, I have published a Green Paper setting out our plans to deliver “Invest 2035: The UK’s Modern Industrial Strategy”.

Growth is the No. 1 mission of this Government. Our vision for a modern industrial strategy is for a credible, 10-year plan to drive sustainable, inclusive and resilient growth and deliver the certainty and stability businesses need to invest across the UK. This is the only way to boost our productivity, reinvest in our public services, create high-quality jobs and ensure tangible impact in communities right across the UK.

The industrial strategy will ensure we can build on our significant and historic strengths—which are the foundations of a vibrant, global economy and position us well to seize the economic opportunities of the coming decade.

To unlock this growth, the strategy will focus on tackling barriers in our highest potential growth-driving sectors. In doing so, the industrial strategy will create a pro-business environment and support high-potential clusters across the country. It will also support our net zero, regional, and economic resilience and security aims. We are prepared to tackle the critical issues head-on and make the choices required to kickstart investment.

We must create a strong pro-business environment that supports businesses to thrive and grow. This industrial strategy will bring forward co-ordinated, sector-specific and cross-cutting policies that support businesses to overcome barriers and make it simpler and cheaper for companies to scale up and invest. These will be founded on four principles: long-term stability, renewing our commitment to free and fair trade, easing the investor journey, and being a strategic, growth-focused state. By considering and listening to businesses and experts, we can identify the most effective levers for our sectors—and clusters—across the country. These policy areas include people and skills, innovation, energy and infrastructure, the regulatory environment, crowding in investment, and international partnerships and trade.

Jobs will also be at the heart of our modern industrial strategy, supporting growth sectors to create high-quality, well paid jobs across the country, backed by employment rights fit for a modern economy. We must also be clear-eyed about the sectors which offer the highest growth opportunity for the economy and businesses, including where the UK has existing and nascent strengths. Our strategy will be ambitious and targeted, taking advantage of the UK’s unique strengths and untapped potential, enabling our world-leading sectors to adapt and grow, and seizing opportunities to lead in new sectors.

Over the last 25 years, roughly 60% of our productivity growth was generated by just 30% of our most productive industries. That is why our industrial strategy has identified eight key growth-driving sectors—advanced manufacturing, creative industries, clean energy industries, defence, digital and technologies, financial services, life sciences, and professional and business services—in which the UK excels today and will excel tomorrow. In the next stage of development of the industrial strategy, we will prioritise sub-sectors within these broad sectors that meet our objectives.

We must also ensure our growth unlocks the economic potential of the UK’s cities and regions, by tailoring policy to specific place-based constraints and opportunities. We will give mayors in England the tools they need to grow their economies and develop ambitious 10-year local growth plans. We will also work in partnership with the devolved Governments to make this industrial strategy a UK-wide effort. In doing so, we will explore how the industrial strategy can identify, select and intervene in the most important industrial sites and sectoral clusters across the UK, making them magnets for globally mobile investment.

But this strategy—and our ambitions—can only be realised in partnership. Too often, the impact of industrial strategies has been concentrated in certain regions and not shared across communities. Businesses tell us that past plans have been short-lived, and often business have felt they were done to, rather than with, them. We will engage widely through the development of this strategy, engaging businesses, trade unions, local and devolved leaders, academics, and international partners.

To underscore this approach, I am also very pleased to announce that we are launching the industrial strategy advisory council, and have appointed Clare Barclay, CEO of Microsoft UK, as chair. Ms Barclay brings a wealth of leadership experience at top-flight UK businesses across technology, innovation and artificial intelligence. Further members will be confirmed in due course, drawn from across business, academia and trade unions to provide a broad range of skills and expertise.

Through the Green Paper, the Government are seeking the views of businesses, stakeholders and parliamentarians to inform the continued development of our industrial strategy and ensure it delivers for people and communities across the UK. I would welcome your analysis and insight, as well as the views of businesses and others in your constituencies.

The industrial strategy and growth-driving sector plans will be published in spring 2025. I will keep Parliament informed as the industrial strategy, and industrial strategy advisory council, continue to develop. I am placing copies of the Green Paper in the Libraries of both Houses.

Reforms to company law

The UK has always been a great place for overseas companies to invest and do business. The Government are committed to taking steps to make the UK a place where foreign companies can easily relocate their incorporation. A UK re-domiciliation regime would increase the ease with which companies could move their place of incorporation to the UK, minimising costs and risks that could otherwise arise from the alternative routes and ensuring that the UK remains internationally competitive. Today, we have published a report by the independent expert panel on corporate re-domiciliation, established to consider how best to implement a framework in the UK. The Government welcome the panel’s report and intend to consult in due course on a proposed regime design. A copy of the report will be placed in the Libraries of both Houses.

I can confirm that my Department will lay legislation by the end of the year that will save companies £240 million per year by removing redundant reporting requirements and uplifting the monetary size thresholds for micro-entities and small and medium-sized companies, as well as making technical fixes to the UK’s audit framework. The changes will benefit up to 132,000 companies who will move to a smaller size category, with lighter-touch accounting and reporting requirements more proportionate to their size. These changes are the first step toward modernising the UK’s reporting framework, so it is simpler and better for business, supporting the Government’s aim of having the highest sustained growth in the G7. My Department will also launch an ambitious consultation next year aimed at simplifying and modernising the UK’s non-financial reporting framework. Efforts to modernise will also include examining the potential for updating shareholder communication in line with technology and clarifying the law in relation to virtual annual general meetings.

The Government are also announcing their commitment to speeding up the process for raising share capital. The “Financing Growth” paper committed the Government to implementing the outstanding recommendations from the “Secondary Capital Raising Review”, published in 2022. The changes will be welcomed by business and shareholders and will speed up and simplify the process for companies raising new share capital, for example by reducing from 10 to seven working days the minimum time in which a company must offer new shares to existing shareholders before offering them to the wider market.

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Plan to Make Work Pay and Employment Rights Bill

Jonathan Reynolds Excerpts

Thursday 10th October 2024 Written Statements

[The Secretary of State for Business and Trade (Jonathan Reynolds)]

Delivering the Government’s Plan to Make Work Pay—Introduction of the Employment Rights Bill

The plan to make work pay sets out a significant and ambitious agenda to ensure workplace rights are fit for a modern economy, empower working people, and contribute to economic growth. Today, the Government are fulfilling the manifesto commitment to bring forward legislation within 100 days of entering office by introducing the Employment Rights Bill.

Upgrading the UK labour market so it is fit for our modern economy is a key step to kickstarting economic growth, alongside other planks of our modern supply side approach, including planning reform, kickstarting a skills revolution, a modern industrial strategy and a plan to tackle inactivity. The Bill will support the Government’s mission to increase productivity and create the right conditions for long-term sustainable, inclusive, and secure economic growth by giving the British public the work, wages, prosperity, security, dignity, and the living standards that everyone in Britain needs and deserves. This is a comprehensive Bill which, once implemented, will represent the biggest upgrade in employment rights for a generation. It will raise the minimum floor of employment rights, raise living standards across the country and provide better support for those businesses who are engaged in good practices.

Benefits of the Employment Rights Bill

This is a pro-worker, pro-business plan. The Government will tackle head-on the issues within the UK labour market that are holding Britain back. The plan to make work pay sets out a vision for modern and fair employment protections that will set the country up for the future.

Supporting families

Many businesses already provide good, family-friendly conditions for their workers because they know that doing so improves productivity, morale, and retention. This Bill will increase the baseline set of rights for employees with parental or other caring responsibilities, enabling more working parents to get on at work, and achieve a better work-life balance—whether that is raising children, improving their own wellbeing, or looking after a loved one with a long-term health condition. Businesses will gain too where this boosts increased workforce participation, helping employers fill vacancies. Measures will increase the likelihood of a request for flexible working arrangements to be granted, introduce day one entitlement to paternity leave and unpaid parental leave, and introduce a statutory entitlement to bereavement leave.

Despite existing protections, we know it is not always a level playing field, and too many women are being held back at work. By expanding gender pay gap reporting requirements, requiring large employers to produce action plans on how to address their gender pay gaps and support employees through the menopause, and strengthening rights for pregnant workers and new mothers, this Bill will put gender equality front and centre of our employment legislation. These measures will support women’s employment participation and tackle the gender pay gap.

Improving rights and addressing one-sided flexibility

Too many workers experience low-paid, insecure and poor-quality work. This Government believe that all workers should be able to enjoy fair rights, benefits and security in the workplace, no matter who they work for. The Government intend to support businesses so they are no longer undercut by those with low standards. By introducing day one protection from unfair dismissal (while allowing employers to operate probation periods), increasing protection from sexual harassment in the workplace, ending unscrupulous fire and rehire and fire and replace practices, strengthening rights and requirements for collective redundancy consultation, and banning exploitative zero hours contracts, we will raise the bar for workers and provide a baseline of security in work. The plan to make work pay sets out a vision for better, modernised, and fairer employment protections that will set the country up for the future.

Improving take home pay and conditions at work

We have already made progress in championing fair pay by changing the Low Pay Commission’s remit to take into account the cost of living for the first time. The Bill will go further, introducing powers to create a fair pay agreement in the adult social care sector, and reinstating the School Support Staff Negotiating Body. We will also be reinstating and strengthening the two-tier code for public sector contracts, helping ensure that employees working on outsourced contracts will be offered terms and conditions no less favourable to those transferred from the public sector. We will strengthen statutory sick pay, removing the lower earnings limit to make it available to all employees, and removing the waiting period so that SSP is paid from the first day of sickness absence.

A better enforcement system

While the vast majority of employers champion the spirit of good business and workers’ rights, some fall short. By bringing together the various agencies and enforcement bodies that enforce employment rights into the new Fair Work Agency, we will ensure that where employers are not doing what is right, a simplified and strengthened enforcement system will protect workers and ensure justice in the workplace.

Voice at work

This Government believe that workers should have a voice at work, and trade unions are essential for tackling insecurity, inequality, and low pay. That is why this Bill will focus on strengthening the rights of trade union representatives and bring archaic and prohibitive trade union legislation into the 21st century. We are bringing forward multiple measures to protect workers from dismissal and blacklisting for trade union activity, ensure workers understand their right to join a trade union, to simplify the statutory recognition process, and to bring in a new right of access for union officials to meet, represent, recruit, and organise members in workplaces. As previously announced, we will repeal the Strikes (Minimum Service Levels) Act 2023 and the Trade Union Act 2016.

The plan to make work pay was developed through close engagement with business and trade unions, and we are committed to continuing with this approach through full and comprehensive consultation on the implementation of the plan.

Next steps to make work pay

The Government are committed to implementing their plan to make work pay in full. Not all the commitments within make work pay require primary legislation to implement; in many areas the Government have existing powers to deliver on commitments through secondary legislation and non-legislative means. In addition, the Government have been clear that some parts of the plan will take longer to review and implement. In order to provide Parliament, workers and business clarity on how Government intend on delivering on the plan, we are today publishing the “Next Steps to Make Work Pay” paper. This sets direction and gives businesses and workers confidence in our long-term programme of work. Work is already under way to prepare consultations on several aspects of the plan.

As is typical with employment legislation, further detail on many of the policies in the Bill will be provided through regulations after Royal Assent. We expect to begin consulting on these reforms in 2025, seeking significant input from all stakeholders, and anticipate this meaning that the majority of reforms will take effect no earlier than 2026. Reforms of unfair dismissal will take effect no sooner than autumn 2026. We will continue working with partners right up to implementation. Advice and support will be available to businesses to support this.

The Government will continue to work hand in hand on these changes with business, trade unions and civil society in a spirit of partnership to get Britain moving again.

[HCWS117]

Office of Trade Sanctions Implementation

Jonathan Reynolds Excerpts

Thursday 10th October 2024 Written Statements

[The Secretary of State for Business and Trade (Jonathan Reynolds)]

Today, the Department for Business and Trade launches the Office of Trade Sanctions Implementation. OTSI is a new unit equipped with enhanced powers to strengthen the implementation and enforcement of trade sanctions. Following Russia’s full-scale invasion of Ukraine, the UK imposed sanctions against Russia on an unprecedented scale. These sanctions have deprived Russia of more than $400 billion since February 2022. On one estimate, that is equivalent to four more years of funding for the invasion. The creation of OTSI will help ensure that the UK’s trade sanctions regimes have maximum impact.

The Trade, Aircraft and Shipping Sanctions (Civil Enforcement) Regulations 2024, which come into force on 10 October 2024, grant OTSI new civil enforcement powers, which complement His Majesty’s Revenue and Customs’ existing powers to enforce trade sanctions. While HMRC continues to be responsible for enforcement in relation to goods and technology that cross the UK border, OTSI will lead on the enforcement of:



the provision or procurement of sanctioned services;

moving, making available, or acquiring sanctioned goods outside the UK (where a UK person is involved);

transferring, making available or acquiring sanctioned technology outside the UK (where a UK person is involved);

providing ancillary services to the movement, making available or acquisition of sanctioned goods outside the UK (where a UK person is involved); and

providing ancillary services to the transfer, making available or acquisition of sanctioned technology outside the UK (where a UK person is involved).

The Office of Financial Sanctions Implementation in HM Treasury remains responsible for enforcement of the oil price cap, alongside its implementation of financial sanctions.

With this new enforcement toolkit, OTSI can impose civil monetary penalties and has powers to request, share, and publish information about sanctions breaches. There are also new reporting obligations for financial services, money services businesses and legal service providers. These will help OTSI to detect and investigate suspected breaches.

A key part of ensuring UK sanctions are effective is improving compliance. As well as tackling breaches when they occur, OTSI is being established to help UK businesses comply with their obligations under UK trade sanctions, through engagement with industry and by providing information and guidance. OTSI will also deliver the sanctions licensing function for stand-alone services, including professional and business services.

The Department for Transport will lead on civil enforcement in relation to aircraft and shipping sanctions. The Trade, Aircraft and Shipping Sanctions (Civil Enforcement) Regulations 2024 also confer powers on the Secretary of State for Transport to request and share information, impose a civil monetary penalty, and to publish information about a breach of aircraft or shipping sanctions where a penalty has, or could have been, imposed. The legislation also places obligations on certain persons to report known or suspected breaches to DFT.

The UK’s sanctions framework was severely tested by the unprecedented scale and scope of the sanctions we have imposed on Russia since 2022. This step change in how we use sanctions revealed areas which required further strengthening, including the need for civil enforcement powers for certain trade sanctions breaches. This Government are committed to maximising the effectiveness of UK sanctions, including through significantly strengthening our sanctions enforcement tools. Launching OTSI and equipping it, and DFT, with an enhanced enforcement toolkit demonstrates that commitment.

[HCWS121]

Late Payments and Long Payment Terms

Jonathan Reynolds Excerpts

Monday 7th October 2024 Written Statements

[The Secretary of State for Business and Trade (Jonathan Reynolds)]

Late payments and long payment terms continue to be a significant issue for small businesses and the self-employed across the UK. In 2022, small businesses were owed on average an estimated £22,000 in late payments from the businesses they supply. As well as the direct costs to businesses through lost and late revenue, there are also indirect costs, which include a reduction in productivity through lost time chasing late payments and forgoing investment and growth opportunities. We are determined to foster a strong payment culture in the UK by bringing the payment performance and behaviour of large companies more clearly into focus.

Therefore, we are announcing that we will lay secondary legislation in this parliamentary Session to make it a requirement for large companies to include information about their payment performance in their annual reports.

This measure will help increase transparency around the payment practices of large businesses and bring them into focus for boards and investors.

Introducing secondary legislation however only represents our first step. The Department for Business and Trade will also launch a public consultation within months on additional legislative measures to address late payments and long payment terms. We will take action as needed to ensure improvements in payment times, especially for small businesses and the self-employed.

We will also be launching a new fair payment code to be overseen by the Small Business Commissioner—a voluntary code of best practice for companies committed to fair and fast payments. This will replace the existing Prompt Payment Code, with a clearer and more measurable set of ambitious commitments and will be a further lever to improve the UK’s business payment culture by shining a light on the best performers.

Secondary legislation has also been laid today to amend the Reporting on Payment Practices and Performance Regulations 2017 and the Limited Liability Partnerships (Reporting on Payment Practices and Performance) Regulations 2017, to require qualifying companies and LLPs to publish certain information on their practices, policies and performance with respect to retention clauses in any qualifying construction contracts with suppliers. This measure will help increase transparency around retention policies and performance, and encourage improved payment practices.

This package demonstrates this Government’s determination to tackle the scourge of late payments, meeting the commitments laid out in our manifesto and plan for small business.

These initiatives will ensure more businesses are paid on time—ultimately increasing productivity, improving cash flow and driving growth.

[HCWS106]

Port Talbot Transition Project

Jonathan Reynolds Excerpts

Wednesday 11th September 2024 Commons Chamber

[The Secretary of State for Business and Trade (Jonathan Reynolds)]

With your permission, Mr Speaker, I would like to update the House on the improved deal that this Labour Government have secured for the workers of Tata Steel, specifically as it relates to its plant in Port Talbot. As well as setting out the details of this improved deal, I am also announcing today our ambition for a new UK-wide steel strategy—one that equips our steelmaking industry with the right support not just to adapt but to thrive in the new green economy. But before I do so, I want to address the situation we have inherited.

Since becoming Secretary of State two months ago, I have had to respond to a series of challenges, not just with the steel industry but in shipping—such as at Harland & Wolff—and in other areas where the previous Government had simply ceased to make decisions and decided to leave them for us to deal with. That was a dereliction of duty and it has left the steel industry in particular in an extremely perilous position. The previous Government had been promising a plan for the steel industry for years. With what I am able to announce today—with the signing of a legally binding deal that enables Tata to order its electric arc furnace as part of a significantly improved package—this Government have made more progress in two months than they made over the previous Parliament. But if we had started these negotiations even a year ago—never mind years ago as they had the opportunity to do—I have no doubt that we would have secured an even better deal for the community.

So I start with an apology to the people of Port Talbot, because they were let down by the previous Government. While this deal is much improved, I acknowledge that it falls short of what would be my ideal. I have, however, been to Port Talbot several times and met the workforce there, along with the reps and the generations of families who have literally forged Port Talbot as we know it. That is why, when Tata first announced that it would be closing the blast furnaces, resulting in some 2,800 job losses, I knew that the workforce deserved so much better. I warned my predecessor not to proceed with what they had negotiated. Why? Because I was confident that the Government could secure a better deal: a better deal for Tata’s workers and a better deal for the people of Port Talbot. And I am able to announce today that this Government have secured that better deal, but I reiterate that if we had had the opportunity that the previous Government had over so many years we could have done more.

The key features are as follows. First, we have agreed a process with Tata to assess investment opportunities for new, additional capabilities that will deliver more secure, long-term jobs than the deal we inherited. This is on top of the plans for the instalment of the electric arc furnace. We have agreed a process with Tata to take this forward, and I will report back to the House on that progress. But this is the most important element, so I am announcing the deal now, rather than after the process is complete, because for Tata to secure the build slot for the electric arc furnace, that element needs to be sorted now. Further delays would put the whole project at risk and could lead to a much worse outcome.

Secondly, in every conversation I have had with Tata’s directors, I have stressed the need to avoid compulsory redundancies wherever possible. I have asked them to channel their efforts instead into job matching and retraining so that the steelworkers of Port Talbot, who have dedicated so much to the industry in the past, can now help shape its future as they will be able to transition and move within the business. As well as that, Tata is agreeing to offer a comprehensive training programme for any employee as an alternative for those at risk of compulsory redundancy. This would be on full pay for one month, then £27,000 a year per employee for 11 months. Tata will fund all those costs. Employees will be able to choose from recognised qualifications to develop sought-after skills that will be in high demand in the local economy now and long into the future. We know, too, that Tata expects that during the construction of the electric arc furnace at least 500 new jobs could be created, which will tap into the local labour market wherever possible.

Thirdly, where we cannot secure new jobs or training, working closely with the unions we have helped to secure improved terms on redundancies. Tata’s employees are now able to express an interest in the most generous voluntary redundancy package the company has ever offered for a restructuring of this size. Employees will now be paid 2.8 weeks of earnings for each year of service up to a maximum of 25 years. At the same time, we are ensuring that there is a minimum redundancy payment—£15,000 pro rata—and a retention payment of £5,000 for employees leaving the business because of these closures. Over 2,000 members of staff have expressed an interest in voluntary redundancy who will be eligible on these terms.

Fourthly, as part of the deal the company will also be releasing 385 acres of its site for sale or transfer. This is valuable real estate which will help bring in more companies and more employers not just from the steel sector but from a whole host of other industries too, helping to diversify the workforce at Port Talbot.

While Conservative Members told us that there was no alternative to the original proposal, we knew that there was, and we have bargained hard for it. And we are putting in watertight conditions within our grant funding agreement for job guarantees to claw back investment if these jobs do not materialise. For example, there is now an improved grant repayment of £40,000 for every job that is not retained post transformation. This money will be repaid directly to the Government and is a powerful incentive for Tata to deliver the 5,000 UK jobs target.

But our ambition for steel is so much bigger and broader than one single company: it is about the whole sector. The UK has always been a proud steelmaking nation, with a rich heritage stretching back to the industrial revolution. From cars to cranes to ships and scaffolding, British steel has been, and is still, used the world over, embodying our industrial might and innovation. Yet for years steel has been a neglected industry in this country. Crude steel production has declined by more than 50% in the last 10 years. Indeed, some proclaimed the industry’s decline would be inevitable in the 21st century—that it was somehow a sunset industry—but those people are wrong: we on this side of the House have never believed that decline is inevitable and while the industry faces challenges today we want to do everything we can to ensure that it can adapt and grow tomorrow.

That is why I am pleased to announce that we will introduce our new steel strategy. As hon. Members know, our manifesto included plans to make available £2.5 billion for steel, on top of the £500 million transformation of Port Talbot. Our intention is to increase our UK capabilities, something the previous Government never attempted, so that we can create a more vibrant and competitive steel sector in the UK.

As part of our steel strategy, this Government will look seriously at options to improve steel capabilities across the supply chain, including in primary steelmaking. We are clear that we cannot prioritise short-term subsidies over long-term jobs, which is why, with the help of independent experts, we will review the viability of technologies for production of primary steel, possibly including direct reduced iron.

Steel is essential to delivering on our net zero goals and building the next generation of green infrastructure, and I know that Labour Members are passionate about that. That is why, under our steel strategy, we intend to use the Procurement Act 2023 to drive economic growth and account for social value in the things that the Government buy and the projects we commission. Work is already under way to increase the role of steel as we build our manufacturing base.

We recognise that, for far too long, Britain’s energy-intensive industries, including the steel sector, have been held back by high electricity costs. More often than not, this has made the UK less attractive to international investors, but we will take action on that. Our clean energy mission will ensure that we are no longer exposed to the kinds of gas price shocks that we have seen in recent years, and that will help British businesses to compete and win in the global market. In support of that ambition, we are working with like-minded nations to tackle global trade distortions, including through our chairing of the global forum on steel excess capacity this year.

Our steel strategy will be developed and delivered in partnership with the steel sector and trade unions, and it will work in lockstep with the Government’s industrial strategy, which will set out our ambition to ramp up investment, strengthen our supply chains and create more well-paid jobs in the places where they are needed most. In order to drive forward our partnership on the steel strategy, I will shortly meet industry experts and interested parties for discussion on the industry’s future. We intend to publish the steel strategy in the spring of next year.

The Government care about steel and the communities it supports, and recognise steel’s fundamental importance to the economy. Supporting steel in this country is about being involved in the detail and shepherding individual plants into the future while protecting the people in them, but it is also about providing a direction of travel, an inspiration for investment and a cause for confidence, so that the sector can play its part in the next 10 years and beyond.

We are not naive about the scale of the challenge before us. Although the situation is still challenging, this is a better deal for Port Talbot than was on the table, and it is the maximum improvement we could make in two months. It represents a better destination and a better transition to the bright future that steel will have under this Government. I commend the statement to the House.

[Mr Speaker]

I call the shadow Minister.

[Greg Smith (Mid Buckinghamshire) (Con)]

I thank the Secretary of State for giving me advance sight of his statement. I wish I could say that I am surprised by any of its content, but the media and the press have, of course, been relentlessly briefed on it over the last couple of days.

It is also no surprise that, once again, Labour is presiding over the demise of our steel sector. Output fell by 47% under the last Labour Government, and 56% of jobs were lost. Today’s deal means that 100% of output will go at Port Talbot. An electric arc furnace will take five years at best to get up and running; some suggest that it will be eight to nine years before a single new job is created, if we see any new jobs at all. As the statement says, this is a transition, but it is a heartbreaking transition for thousands of people—a transition from being in work to being out of work. In his discussions with Tata, why did the Secretary of State not take steps to ensure that the blast furnace will not be closed before the new electric arc furnace opens? Is this not the New Labour playbook—scrap jobs, scrap production and become reliant on higher-polluting countries for imports? That is not what I call decarbonisation. I must say, I feel a little sorry for the Secretary of State, who has been dispatched here to announce these spending decisions just a day after Labour’s day of shame on winter fuel cuts for pensioners.

In government, the Conservatives provided a grant of £500 million towards the £1.25 billion invested by Tata Steel, one of the largest support packages in the government’s history. At the time of the last Government’s announcement, that support was expected to save at least 5,000 jobs in the company. We worked with the Welsh Government and Tata Steel to establish a dedicated transition board to support affected employees and the local economy, backed by £100 million in total. Will the Secretary of State provide an update on any of those job projections?

Today’s announcement is notable for the absence of any reassurance or plans for the thousands of steelworkers in Scunthorpe who may not have jobs by Christmas. Equally notable is the Government’s failure, once again, to provide any detail on the domestic production of virgin steel. The Secretary of State says that we will have a steel strategy in the spring, but thousands of jobs, along with production capacity, have been scrapped today.

It was no surprise that last week, during the urgent question on steel, four times, the Minister for Industry failed to commit to safeguarding the future of virgin steel production in this country. I am sure that the Secretary of State does not need reminding that if he allows the Scunthorpe works to close, too, we will be the only G7 country unable to produce virgin steel. That leaves us open and vulnerable to cheap foreign imports, particularly from China. To his credit, he has always argued against offshoring our steel industry. He conceded once that it would be a “fundamental political mistake”. What conversations has he had with the Secretaries of State for Transport and for Defence about the impact of the Government’s new steel policy on our national security and ability to deliver infrastructure? Will he assure the House that he is doing everything in his power to ensure that we do not lose virgin steel manufacturing in the United Kingdom?

For the benefit of new colleagues, the Government, when in opposition, were committed to £28 billion a year of borrowing to fund their decarbonisation plans—a price tag that has magically disappeared, although the target has not. The Secretary of State made promises about that to the steel industry, but where are those promises now? Where is that money? Is he still battling the Chancellor? We know that Labour’s unions are quite successful in squeezing money from the Treasury, so maybe he can send them to stand up to the Chancellor if he is having problems.

The Government have our support in ensuring that the future of steelmaking in this country is sustainable. That goes beyond Tata and South Wales. Only in Labour’s world can the word “improved” mean fewer jobs and higher-polluting imports. When he returns to the Dispatch Box, I hope the Secretary of State will do better for UK steelmaking.

[Jonathan Reynolds]

I have been a Member of Parliament for 14 years, in which I have seen some interesting political events, but I do not think I have ever heard a contribution with such brass neck. That is quite something, because there is quite a menu to choose from.

Let me explain what I was doing during polling week, in the lead up to 4 July. Parliament was not sitting, and I was shadow Secretary of State. I was going between key seats, as would be expected, negotiating with unions, Tata, my colleagues in the Welsh Government and every relevant body to prevent action that would have resulted in the entire closure of the Port Talbot works on polling day. It was as though the Government had already gone; they were not on the pitch. The first thing I had to do, before I even became Secretary of State, was ensure that there was something there to save, because it would have gone under the Conservative party. [Interruption.] Conservative Members really need to listen, because my contributions are factually accurate, and I will help them to understand the real situation.

The point of the new investment is to save jobs. There will be better terms for the people who are unable to get the new jobs, including better cushioning during their retraining for entry into the rest of the economy. I have explained why it is a better deal, as I hope the shadow Minister has seen. He mentioned media reports; they have not come from my Department, but I appreciate that there were lots of interested parties. The unions and the Welsh Labour Government recognise that this is a better deal. I hope that the Conservative party recognises, on taking a step back from the statement, why the deal will make such a difference.

The shadow Minister mentioned virgin steel. Let me talk about my frustration about that. He will understand that the two blast furnace sites, Scunthorpe and Port Talbot, lose a great deal of money every day. The managers are so fed up with the lack of action under the last Government that they have put timescales on their closure. The simple truth is that I do not have the timeframe that was available to the Conservative party. Moreover, when it comes to Scunthorpe, I do not yet have the carbon capture infrastructure in place that will be necessary for the ideal solution. I would love to be a position to look at the hybrid solution that the shadow Minister put forward—keeping the blast furnaces open while we bring the electric arc furnaces online—but all the time that could have been used to work on that was during the Conservative Government, and they did not do that work. There are therefore far fewer options available to us, and the situation is far more challenging.

Since I became Secretary of State, I have had many meetings with the UK management about Scunthorpe, and have had three meetings, I believe, with Mr Li, the principal shareholder. I also met him when I was shadow Secretary of State. We have been clear that we want a transition in Scunthorpe, and want to put up Government money alongside what the company may offer, but that has to be part of a transition to the future. The workforce and the route that is offered to them has to be part of that.

Even if we are successful in doing that, my frustration is that the options available are very difficult for the area. The solution I would ideally deliver, which could have been delivered by the Conservatives in those 14 long years, is not available. When Conservative Members leave the Chamber today, I hope they reflect on the mistakes they made, their lack of action, the legacy they bequeathed us and, fundamentally, the improvements we have been able to make in such a short time.

[Mr Speaker]

I call the Chair of the Business and Trade Committee.

[Mr Speaker]

Order. May I say to Members, especially senior Members, that when they speak facing the opposite direction from where I am sitting, I cannot hear what they say? Please, speak towards the Chair. That is how we keep neutrality working as well.

[Jonathan Reynolds]

My right hon. Friend is absolutely right. We are not just seeking to deliver new, improved transition deals for the key sites, but want to improve the overall business and investor environment for steel in the UK. I believe that can be done. The kind of investments in core capacities that we are thinking about could be very successful in the United Kingdom. Obviously, two months is insufficient for the due diligence that is required on some of the elaborate and considered business cases necessary, but the process is about delivering that. We can turn this into an extremely positive story for UK steel.

--- Later in debate ---

[Sarah Olney (Richmond Park) (LD)]

Steelmaking is of vital strategic importance to the UK. We need it to build the crucial infrastructure necessary to generate sustainable growth and safeguard our national security. The neglect of the steel industry in recent years is just another part of the previous Government’s disastrous legacy.

Today’s announcement is a welcome sign of change. The steps the Government have outlined to help protect jobs and, crucially, to develop a steel strategy are long overdue. We need to finally move on from a patchwork of last-minute rescues to a long-term plan that will set the industry on a sustainable footing. This is true of the steel industry and across our economy. We desperately need a real industrial strategy that works in tandem with this plan for steel.

Will the Secretary of State assure us that his steel strategy will be fully aligned with a wider industrial strategy, and will take a view on steel’s importance to our economy and society as a whole? Will it aim to balance the need for infrastructure, national security and net zero commitments? Will he assure us that he will bring the strategy to this House by spring next year for scrutiny and debate, so that the industry can finally move on with certainty?

[Jonathan Reynolds]

I very much welcome the hon. Member’s words and her recognition of the improvements that we have made with this deal. Fundamentally, we have recognised the need for a better business environment, moving away from relatively short-term responses to that much better, more secure long-term framework. She will understand that the significant increase in investment that this new Government are willing to make can make a substantial difference. However, the emphasis must be on long-term investments for the future, so that we can secure those long-term secure jobs. There are several different ways that we can do that. I absolutely agree that our method should be aligned with the industrial strategy, and we will be able to make some announcements on that in the near future, leading up to the launch of the steel strategy next year.

[Mr Speaker]

I call the other potential Chair of the Select Committee.

[Matt Western (Warwick and Leamington) (Lab)]

That is incredibly gracious of you, Mr Speaker. [Laughter.] I think your words were heard across the Chamber.

May I welcome the Secretary of State to his place, and underline the importance of his commitment and the strength of his negotiation? I add my voice to those who talk about the importance of public procurement, but may I draw his attention to the carbon border adjustment mechanism? As I understand it, we have a disadvantage in this area because of how the mechanism was established in the UK. It is due to be introduced on 1 January 2027, which is later than in the EU, clearly disadvantaging our UK producers. Will he update the House on what he plans to do in that area?

[Jonathan Reynolds]

I am grateful to my hon. Friend for his question and to you, Mr Speaker, for your very skilful introduction. He is right to talk about that wider business environment, and specifically asks about the carbon border adjustment mechanism. We have inherited this situation of the UK being out of line with the EU. Obviously, because our carbon prices are lower, there is a potential carbon barrier to UK exports to the single market. I can tell him that we are looking at that. The carbon border adjustment mechanism is a key part of a wider policy environment that must deliver decarbonisation, which is not deindustrialisation. We must recognise that the current policy environment is not doing that in the way that any of us would want.

[Priti Patel (Witham) (Con)]

I listened to the statement from the Secretary of State with interest. Will he specifically say, first, when the strategy will be published and brought to this House? Secondly, what level of Government investment will be behind the strategy? Thirdly, what assurances can he give to steelworkers across England—at Port Talbot and Scunthorpe in particular—that their jobs will not be put at risk because of steel being dumped in the UK from China?

[Jonathan Reynolds]

I am grateful to the right hon. Member for her questions. We will see the strategy in spring next year and the resources behind it, including the existing Government allocation for Port Talbot and the new money that the Government will put in. It is a £3 billion clean steel fund, so it is a significant investment. Obviously, I want a certain amount of return from that. I want to work with private sector partners. The kind of capital expenditure that is involved in the transition to green steel requires very significant partners who can deliver. It is not just a question of the Government doing this alone, and I think hon. Members recognise that. Steel safeguards are important. The right hon. Lady will know that steel is a significant part of the existing Trade Remedies Authority protections, many of which relate to China, but not exclusively so, and we keep them under regular review.

[Catherine Fookes (Monmouthshire) (Lab)]

I thank my right hon. Friend for today’s announcement and for reminding us of the role that steel plays in our green transition. He has done more in two months than the Conservatives did in 14 years. Many of my constituents in Monmouthshire, especially in Caldicot and Chepstow, work in the steel supply chain and in steel. Does he recognise that his announcement today has ramifications for the whole of south Wales?

[Jonathan Reynolds]

I thank my hon. Friend very much for her question. Let me say again that I wish that we were in a position to do even more, but I can tell hon. Members that this is the maximum improvement that was possible within two months. I know that in constituencies such as my hon. Friend’s people are seeking more than anything else a recognition that steel is not a sunset industry. It is vital to the future; it is not the case that it should be in inevitable decline in the UK. Indeed, we are an outlier in terms of the size of our steel industry among comparable G7 and OECD countries. This could be and should be a very positive story, and I am honestly confident that we can deliver that in future.

[Bob Blackman (Harrow East) (Con)]

The right hon. Gentleman mentions procurement, and over countless years we have had statements and new strategies for steelmaking. Will he set out his plans to secure a long-term order book for steelmaking in this country, so that investors can make sure that they get value for money as well as the taxpayer? Equally, how will he endeavour to use the public purse to purchase British steel, while at the same time encouraging the export of British steel to other parts of the world?

[Jonathan Reynolds]

I am grateful to the hon. Member for his question and very much agree with him. As the shadow Secretary of State, I avidly read the statistics that the Department published about UK content in domestic steel procurement. We must recognise that it is usually relatively high, but only in the sectors where we are producing particular grades of steel. Part of the strategy has to look at future demand, not just for what we already produce, but in terms of gaps and business opportunities. If we are improving the business environment, we need not just to help incumbent producers in the United Kingdom transition, but bring in new entrants, creating more competition in the market. I can see that there is significant demand in the market. It is the market that is driving the demand for green steel. I have no concerns about the future order book; it is the business environment taking advantage of that demand that this strategy needs to address.

[Torsten Bell (Swansea West) (Lab)]

I thank the Secretary of State for his statement and for all his hard work in recent months. It is clear that the delays in the negotiations have had a very real cost. When I was visiting Port Talbot on Friday, what the workers and the management wanted to know was whether those delays had now come to an end. Can he reassure the House that we will do everything we can to make sure that the construction does now get going on the future of this plant?

[Jonathan Reynolds]

I thank my hon. Friend for his question and for recently visiting the site to speak to management and the workforce. He is right about the understandable level of concern in the workforce. Obviously, that is often speculated on in the media, and there is a huge amount of interest in it. I made this statement today because of the need to proceed with part of the plan, and not to lose everything entirely. I also wanted to be able to answer questions such as his and to make it clear that the Government’s manifesto commitment to the steel transition fund forms part of a wider ambition, a coherent strategy, for the future of steel across every part of the UK.

[Llinos Medi (Ynys Môn) (PC)]

The loss of virgin steel production in Wales is a serious economic blunder that will devastate the community of Port Talbot. Unions have previously called for additional investment of £683 million in Port Talbot to save jobs. Meanwhile, Germany has invested €1.3 billion in decarbonising steel in one region alone this year. Can the Secretary of State explain why he will not match the ambition of the workers here and Governments of other countries to save Welsh steel?

[Jonathan Reynolds]

The levels of ambition and resource that we have as a new Government are actually greater than the figures that the hon. Lady has just given. To do the work that she describes requires a private sector partner. The Government cannot alone meet the capital expenditure needs. Indeed, to be successful it is better to work with a private sector partner to deliver that. Having a partner to retain virgin steel production is part of what the strategy will be able to address. If I had a partner willing to keep blast furnaces open, I would be very interested in that. However, I do not want to spend this very large sum of money in our clean steel fund on subsidising operating losses for one or two years, which would eat up most of that £3 billion and leave us with nothing at the end of it. I want to co-invest with the private sector for good, secure, long-term jobs, which are much in demand. She is right to say that other European countries have been way ahead of the UK in the past few years, but the level of ambition from this Government not only matches that among some of those European competitors but exceeds it.

[Steve Witherden (Montgomeryshire and Glyndŵr) (Lab)]

What discussions has the Secretary of State had with the workforce and their unions about this improved deal?

[Jonathan Reynolds]

The answer is a great many, as my hon. Friend will understand. I have always been conscious not just of the specific impact on the workforce at Port Talbot, but of the fact that some of the big industrial transitions of the past in the United Kingdom, in the north-east of England where I grew up, were not handled well. I think people recognise that. I thought that the previous Government’s levelling-up strategy was a recognition of the long-term damage that was done in the late ’80s and early ’90s by that transition. Getting that right, and showing the workforce that this is a Government who care, have always been paramount. I have been to Port Talbot several times. I last met the community reps a week ago, and was able to have frank conversations with them. In everything that I have said, and will continue to say, I recognise that we wish that we were in a position to do more, but within the parameters of what we had and where we almost were, in terms of the entire loss of the site, I am confident that this is the biggest improvement that was possible in two months. We will always work with them to ensure that we are getting everything that we can for the site.

[Dr Andrew Murrison (South West Wiltshire) (Con)]

The wholesale price of electricity in this country is already pretty much the highest in Europe, and it will probably get worse as we shift towards renewables, with the possibility of outages and intermittency. That means that electric arc furnaces will become more expensive. What is the Secretary of State doing to ensure that suppliers do not, perfectly legitimately, turn to China for its virgin steel, produced in dirty blast furnaces?

[Jonathan Reynolds]

The right hon. Gentleman will know that this has long been a campaigning issue of mine. I have talked repeatedly about the relationship between decarbonisation and the potential for deindustrialisation, and the policy environment in this country not being fit for purpose to deliver that. On the wholesale electricity prices of energy-intensive industries, for most of the time under the previous Government the UK’s prices were wildly uncompetitive. There was some movement, as he knows, with the supercharger policy near the end. More can be done, and there is an even more exciting longer-term position that we could get to. He will have to wait for the Budget, and maybe the spending review, for some more detail on that, but this issue has to be an essential priority for the competitiveness of the UK. We have to recognise that a lot of the industries that we will transition to are very heavy users of electricity—not just clean steel, but for instance gigafactories. This will be a key tool in the future that we have to do better on than we have in the past 14 years.

[Bill Esterson (Sefton Central) (Lab)]

I congratulate my right hon. Friend on securing this improved deal. I know how hard he has worked over many years, not just in the short term before and since the election, as he referred to in his answer to the shadow Minister, the hon. Member for Mid Buckinghamshire (Greg Smith). On procurement, will there be a presumption in favour of using British-produced steel both in nationally significant projects in green energy and in defence? That would be in stark contrast to what the previous Government did, in particular with the fleet solid support contract.

[Jonathan Reynolds]

I thank my hon. Friend for all his support during our years in opposition, when we tackled many of these issues. He asks about procurement. Of course, anything that we do as a Government will be consistent with international trade rules and our commitment to open markets and multilateralism. There is a legitimate way in which social value can be considered in Government procurement. Given the value and quality of what we produce in the UK, I am very confident in procurement playing a bigger part in the future of the steel industry. On defence and the blast furnaces, he will know that neither Scunthorpe nor Port Talbot plays a direct role in some of the key Ministry of Defence contracts. Sheffield Forgemasters plays more of a role in that. There are more capacities and capabilities that we can look to as a country for opportunities in the future.

[Richard Tice (Boston and Skegness) (Reform)]

The truth is—and the country needs to know this—that the thousands of jobs and the loss of the blast furnaces announced today is because of both main parties’ obsession with net zero. The reality is that blast furnaces have been losing money because of high energy costs caused by very expensive renewable energy, but we are where we are. In the event that Tata does not build the electric arc furnaces that are being promised, will the Secretary of State guarantee the House that the taxpayers’ money will be returned to the taxpayer?

[Jonathan Reynolds]

I am afraid that the hon. Member is misinformed as to what this is about. The issue is that these sites lose approximately £1 million a day. They have done so for a long time, and the owners are fed up and want to know that there will be a plan for the future. The role of the Government is to make that future better than it would otherwise be were we not on the pitch delivering it. There are issues around the competitive cost of industrial electricity in the UK, but they are not the issues that he says.

On the guarantee that he seeks, he will have heard my statement. The contractual terms of the grant funding arrangement include that clawback capacity, not just for the overall project but even down to the number of jobs retained. Those are the kind of job guarantees that I want in the public-private relationship going forward.

[Luke Myer (Middlesbrough South and East Cleveland) (Lab)]

I welcome my right hon. Friend’s commitment to introducing a new steel strategy. Steel is not a sunset industry; it is critical for our economy and national security. I know that he is a friend of Teesside. Will he give us some clarity on the status of discussions around investment in steel in Teesside at the moment?

[Jonathan Reynolds]

My hon. Friend is right to make that point. We cannot say enough that this is not a sunset industry; it should have a bright future. We can get this right. On the negotiations, my hon. Friend will know what I have already said about the conversations with British Steel. It is a very challenging issue. We have made it clear that the Government are there to play a part, and we obviously want that to be part of a transition. We have made that as clear as can be. As soon as I have further information, I will update the House.

[Nick Timothy (West Suffolk) (Con)]

I thank the Secretary of State for his statement. As a supporter of industrial strategy, I welcome the idea of a steel strategy in the future, but I will ask a couple of specific questions on the detail. First, is it the Government’s policy that the domestic manufacture of primary steel is a strategic industry that must be protected and guaranteed? What do the Government intend to do about the sourcing, either domestically or through the import of coking coal? Earlier, he seemed to suggest that he would not intervene to support British Steel in Scunthorpe. Can he confirm that, if we lose that capacity, we may go five, six or seven years without steel manufacture in this country?

[Jonathan Reynolds]

I welcome the hon. Gentleman’s support for industrial strategy. I have said many times that there should be, as there is in many countries, cross-party agreement—perhaps not on the detail, but on the premise and what we are trying to achieve. He asks about domestic manufacture and the blast furnaces remaining open. That is of course my preference, but I need a business partner—a company that is willing to do that. I do not think that it would be reasonable to spend the very considerable sum of money that we have pledged on subsidising short-term losses rather than on the ability to deliver new things. He also asks about coking coal. Obviously, that depends on the long-term future of the blast furnaces. That is what they need.

In relation to British Steel, I want a transition plan. My comments earlier were about my frustration that, for me, the ideal deal in a place like Scunthorpe would have been to build the future alongside operating what we currently have. That was available to the last Government; they did not proceed with it. The kind of infrastructure needed for the long-term future of operating blast furnaces would require carbon capture and storage. It was cancelled many times by the previous Government, and is not there. I am heavily constrained in my options, but I am still doing everything that I can to get a deal for the workforce, and to ensure that there is a business there that commands the support of its customers to transition in the future.

[Pamela Nash (Motherwell, Wishaw and Carluke) (Lab)]

I congratulate the Secretary of State on announcing the steel strategy after such a short period in office. The industry has been crying out for it for a very long time. The Conservative party failed the industry by not producing it. Will he say a bit more about what he hopes the strategy can achieve for the steel industry throughout the UK, in particular in Motherwell in my constituency?

[Jonathan Reynolds]

There are future opportunities, particularly from renewables, some of the steels that will be necessary in the automotive sector, and some of the new technologies that are being taken up around other European countries. There is particular excitement about direct reduced iron. How we deliver the business environment, hopefully with new and existing partners, is absolutely key. I hope that that is what the strategy will deliver.

[Jessica Morden (Newport East) (Lab)]

I thank the Secretary of State for his statement, which shows the priority that the Government are giving steel, in direct contrast with the previous Government, who had absolutely no industrial strategy—it was a real cheek of the shadow Minister to suggest otherwise earlier. Will the Secretary of State say a little more about the plans for Llanwern? Its dedicated workforce has been through hard times recently. With support, Llanwern can turn into the finest automotive finishing line in the world. Will he commit to developing that and to safeguarding the future of the plant?

[Jonathan Reynolds]

I say again that had the election not been called, a statement such as this would not have been not possible. It would have passed us by; that was the situation that we faced. My hon. Friend rightly talks with pride about her constituents at Llanwern, which is an incredibly important and successful part of the industrial supply chain in the United Kingdom. I will ensure, as part of the transition, that the downstream functions, which are so valuable and praised, and which carry such respect in the industry, are protected, and that the transition plan does not disrupt the business model, which is, again, proof of the sector’s success and of future opportunities.

[Jim Shannon (Strangford) (DUP)]

I thank the Secretary of State very much for his statement, and I welcome his endeavours, which I think we all recognise, to create firm foundations for the sector as it moves forward. I also recognise his commitment to Harland & Wolff, to which he referred. That is indeed great news, not just for workers but for the construction sector in Northern Ireland. However, the steel industry faces the problem of affordable energy, which he mentioned in his introduction. Will he safeguard the long-term sustainability of that and other industries by immediately addressing the energy price crisis and implementing the necessary long-term green energy fixes?

[Jonathan Reynolds]

I am extremely grateful to the hon. Member for his support for what we have announced. Having a competitive environment is an absolutely key issue. I am already having extensive conversations with the Chancellor and key Cabinet colleagues, including the Secretary of State for Energy Security and Net Zero, about the way to do that not just in the short term but in the longer term, when we will clearly have a significant renewable energy base. There are a lot of exciting options available, including in how we use some of that capacity in areas of low consumer demand. I can tell him that that is a key priority for getting this right in future.

[Alan Gemmell (Central Ayrshire) (Lab)]

I congratulate my right hon. Friend on the deal that he has announced. As a former British trade commissioner to India, I assure him that it is a better deal from a better and more serious Government than the Conservative Government. Will he tell the House what direct conversations he has had with Tata about future investments in the UK?

[Jonathan Reynolds]

I am grateful to my hon. Friend. Although I know that the workforce has, at times, been frustrated by Tata’s plans, I understand why Tata itself was frustrated by the previous Government and how long it took to do the deal. In opposition, I had extensive conversations with Tata to build the kind of relationship that has been necessary to deliver something like this. I met executive chair Chandra at Davos and then flew to Mumbai, as colleagues may remember, to build that relationship. I also saw him yesterday, alongside the Prime Minister and the Chancellor, because he was in the United Kingdom. We are continuing those conversations and working with all partners to deliver the kind of opportunities that we think will be available in the UK in future.

Tata Steel and UK Steel Strategy

Jonathan Reynolds Excerpts

Wednesday 11th September 2024 Written Statements

[The Secretary of State for Business and Trade (Jonathan Reynolds)]

The Government have secured an improved deal for the workers impacted by the transformation plans of Tata Steel and are setting out their ambition for a new UK-wide steel strategy, one which equips our steel-making industry with the right support to adapt and thrive in the new green economy.

I can announce today that we have agreed a process with Tata to assess investment opportunities for new capabilities that will deliver more, secure, long-term jobs than the deal that we inherited. I will report back to the House on progress.

Tata Steel has agreed to offer a comprehensive training programme for up to 500 employees as an alternative for those at risk of compulsory redundancy. This would be on full pay for one month, then £27,000 per annum per employee for 11 months. Tata will fund those costs. Employees will be able to choose from recognised qualifications to develop sought-after skills which will be in high demand in the local economy now and long into the future.

Tata also expects that at least 500 new jobs could be created during the construction of the electric arc furnace, which will tap into the local labour market wherever possible.

The Government have helped to secure improved terms for those at risk of redundancy by working closely with unions.

Tata Steel’s employees are now able set out their expression of interest in the most generous voluntary redundancy package the company has ever offered for a restructuring of this size. Employees will now be paid 2.8 weeks of earnings for each year of service up to a maximum of 25 years.

There is also a minimum redundancy payment of £15,000 pro-rata and a “retention” payment of £5,000 for employees leaving the business because of these closures. Over 2,000 employees have expressed interest in voluntary redundancy on these terms.

As part of the deal, the company will also be releasing 385 acres of their site for sale or transfer. This is valuable real estate which will help bring in more companies and more employers not just from the steel sector but from a whole host of other industries too.

Taxpayers should know the improved terms for workforce are not dependent on additional money.

Strong conditions are included within the grant funding agreement to claw back investment if Tata Steel reneges on its promises or fails to keep its end of the bargain. For example, there is now an improved grant repayment of £40,000 for every job Tata Steel does not retain post transformation. It was £30,000 per job under the previous deal. In the event of this condition being enacted, this money will be repaid directly to the Government—a powerful incentive to ensure Tata Steel meet its 5,000 UK jobs target.

The Government know this is the start of a journey towards a greener future for the steelworks in Port Talbot—reducing the site’s carbon emissions by as much as 85% a year. However, decarbonisation should not mean deindustrialisation. As part of the agreement the Government will be working with Tata Steel over the coming weeks and months to consider business cases for further investment and job creation opportunities.

However, the Government’s ambition for steel is so much bigger and broader than one single company. It is about the whole sector. The UK has always been a proud steelmaking nation, with a rich heritage stretching back to the industrial revolution. From cars to cranes, ships and scaffolding, British steel has been and is still used the world over, embodying our industrial might and innovation. For years, steel has been a neglected industry in this country. Crude steel production has declined by more than 50% in the last 10 years. Some proclaimed the industry’s decline to be inevitable in the 21st century, but this Government do not believe that decline is inevitable. While the industry faces challenges today, we want to do everything we can to ensure that it can adapt and grow tomorrow.

That is why I am pleased to announce that the Government will introduce a new steel strategy, which will be published in spring 2025.

Our manifesto announced £2.5 billion for steel, on top of the £500 million for this transformation at Port Talbot. Our intention is to use the money we are investing to increase our UK capabilities so that we can create a more vibrant, competitive steel sector in the UK.

As part of our steel strategy, this Government will look seriously at the options to improve steel capabilities across the whole supply chain, including for primary steelmaking in the UK. We are also clear that we will not be able to prioritise short-term subsidies over long-term jobs. That is why with the help of independent experts, we will also be reviewing the viability of direct reduced iron in the UK.

Steel is essential to delivering on our net zero goals and building the next generation of green infrastructure, which Members know this Government are passionate about. It is why, as part of our steel strategy, we intend to use the new procurement Act to drive economic growth and account for social value in the things Government buy and the projects we commission. This work is already under way to increase the role of steel as we build our manufacturing base.

This Government also recognise that for far too long British energy-intensive industries, including the steel sector, have been held back by high electricity costs. More often than not, this has made the UK less attractive to international investors. The Government’s clean energy mission will ensure we are no longer exposed to the kinds of gas price shocks we have seen in recent years, helping British businesses to compete and win in the global market. To support that ambition, we are also working with like-minded nations to tackle global trade distortions, including through our chairing of the Global Forum on Steel Excess Capacity this year.

The steel strategy will be developed and delivered in partnership with the steel sector and trade unions, and it will work in lockstep with the Government’s industrial strategy. The Government’s ambition is to ramp up investment, strengthen our supply chains and create more well-paid jobs in the places where they are most needed.

To drive our partnership on the steel strategy forward, the Secretary of State for Business and Trade will shortly meet with industry experts and interested parties to discuss the future of the industry.

This Government care about steel, the communities it supports and recognise its fundamental importance to the economy.

And supporting steel in this country is about being involved in the detail, shepherding individual plants into the future while protecting the people in them. But it is also about providing a direction of travel. An inspiration for investment and a cause for confidence, so that the sector can play its part in the next 10 years and beyond.

[HCWS87]

Post Office Horizon: Redress

Jonathan Reynolds Excerpts

Monday 9th September 2024 Commons Chamber

[The Secretary of State for Business and Trade (Jonathan Reynolds)]

With your permission, Madam Deputy Speaker, I would like to update the House on the Government’s response to the Horizon scandal. How appropriate it is to see you, a former Business and Trade Minister, in the Chair.

My priority as the new Secretary of State is to ensure that victims of the scandal receive the redress that they deserve. Over the past few weeks, I have begun meeting with some of the postmasters whose lives have been so badly damaged by those events. Their stories are harrowing, but their resilience and steadfastness in seeking justice are inspiring. I am also grateful for their candour in sharing insights on how the various compensation schemes can be improved.

May I make a personal point, Madam Deputy Speaker? I know I speak for hon. Members across the House when I say that it fills me with sadness to have to stand here today and address such a significant failure of the state. The role of Government must be to do right, seek justice and defend the oppressed, yet Governments have too often had to be forced into action by brave, tireless and resilient campaigning. Once again, I pay tribute to the Justice for Subpostmasters Alliance, and to campaigners such as Jo Hamilton, Lee Castleton and Sir Alan Bates—incidentally, I add my personal congratulations to Sir Alan on his recent wedding. Without their tireless efforts, justice may well never have been done in this case. As we stand here today, in the shadow not just of this scandal but those of Grenfell, infected blood and several more, I know that it is the firm conviction of everyone in this House that we must do better. This is an issue not of politics but of justice.

In that spirit, I cannot speak of the new Government’s work to address this wrong without again acknowledging and appreciating the work of Lord Arbuthnot and the new Lord Beamish—formerly the Member for North Durham—as well as that of my friend the hon. Member for Thirsk and Malton (Kevin Hollinrake) as Minister. The announcements that we make today are built on their efforts to hasten redress payments and quash wrongful convictions.

Earlier in the summer, the new Government announced the launch of the Horizon conviction redress scheme. I am pleased to report that the first payments have been issued and good progress made on processing the claims received to date. As was the case for the group litigation order compensation scheme, the Department will be setting a target to make, within 40 working days, the first offer to 90% of those who have submitted a full claim. Additionally, the Post Office has now settled over 50% of cases on the overturned convictions scheme, with 57 out of 111 cases fully settled. The Department has also now received over 50% of GLO claims and settled over 200 of them.

Progress has also been made on implementing the £75,000 fixed-sum awards on the Horizon shortfall scheme. As of 30 August, over 1,350 claimants who had previously settled below the £75,000 threshold have been offered top-ups to bring them to that amount, and the Post Office will shortly begin making fixed-sum offers to new claimants. Those interventions will have a significant impact on ensuring that postmasters can access redress swiftly and simply. However, we recognise that this option will not suit everyone and does not address all the concerns raised by postmasters and their representatives. That is why we are taking further action today.

The Horizon compensation advisory board recommended last year that we introduce an independent appeals process for the Horizon shortfall scheme. Today I am pleased to announce that we have accepted that recommendation. That appeals process will enable claimants who have settled their claim under the HSS to have their case reassessed, with the benefit of any new information that they were not able to include in the original application. It will be delivered in-house by my Department, and we will apply the lessons learned from redress schemes to date to ensure that the process is easy for postmasters to engage with and that outcomes are delivered at pace. We will announce further details in the coming months.

There will be no obligation for postmasters to appeal their settlement, and no doubt many will be content that their claims have been resolved fairly. I know that financial redress will never fully compensate victims for their suffering, but we want to help bring some closure to postmasters as soon as we can, which is why we will establish the new appeals process as quickly as possible.

In summary, the new Government will do everything in our power to deliver justice for postmasters, to bring them closure and to ensure that such a national tragedy is never allowed to happen again. I commend this statement to the House.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

No doubt that statement will mean a lot to many constituents, including those in my constituency of Sussex Weald. I call the shadow Secretary of State.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

I thank the Secretary of State for advance sight of his statement and for his kind words. I assure him that we will continue to work collaboratively to put the interests of postmasters first. I also associate myself with the congratulations offered by the Secretary of State to Sir Alan Bates and Lady Suzanne Bates, and the recognition of their contribution and that of others.

As the Opposition promised during the very first urgent question of this Parliament, Ministers know that they will receive our full support to deliver compensation swiftly and quash the convictions of those wronged by this terrible tragedy. In his statement, the Secretary of State has set out a new appeals process for those who have already settled their claim under the Horizon shortfall scheme. I welcome that step. I know that the Department is implementing the work of the Horizon compensation advisory board, which was instrumental during my time in office, and will no doubt be supporting the new Government.

However, I have some questions about the Secretary of State’s statement. First, he confirmed that the appeals process will be open for claimants who have settled their claim under the HSS, but it is restricted to those who have new evidence to support their case. In the same breath, he recognised lessons learned from redress schemes to date, indicating that his Department is aware of the flaws in the scheme, which I also acknowledge. Crucially, will the appeals process also be available, as it should be, to all claimants, not just those with new information? Given the accepted flaws in the scheme, it would be wrong to leave individuals without the opportunity to appeal. If people choose the £75,000 top-up, will they be entitled to appeal? If so, there is a risk that for those wanting to go through the appeal process it will be a slower process because of the number of people seeking to appeal.

Secondly, the Secretary of State says that the appeals process will be up and running as soon as possible. Can he set out a specific timeline? Finally, on appeals, can he tell the House whether these individuals will be entitled to legal representation, as is the case in the GLO process?

Could I also ask the Secretary of State some questions about the broader compensation schemes? Some £289 million has been paid to over 2,800 claimants across four schemes. I was alarmed to find, however, that only six claims have been offered redress through the Horizon convictions redress scheme, and no full and final settlements have yet been made through that scheme. Can he explain those numbers?

I was also concerned to hear the Secretary of State say last week that only 130 letters have been written to postmasters who have had convictions quashed—I think there are 700 such postmasters—and that this was a matter for the Ministry of Justice, rather than his office. I am sure he realises that finger-pointing within Government will not wash with the people who have been through these difficulties and this horrendous scandal, so I must therefore push him on what steps he has taken to mitigate the delays in sending out letters to those affected.

Finally, delay in all the schemes is at least partially the result of an adversarial process of lawyers arguing with lawyers. As a remedy, we were working very hard for Sir Gary Hickinbottom, scheme reviewer in the overturned convictions scheme, to be appointed across all three schemes to expedite claims. Can the Secretary of State confirm that that vital appointment has now been made?

[Jonathan Reynolds]

I am grateful to the hon. Member for his response, and for the tone and collaboration that we tried to model when we were sitting in opposite places in this Chamber. I believe that helped advance what was a difficult piece of legislation to put on the statute book, particularly during a wash-up process, but was the only real vehicle for delivering what we all wanted to see. He has asked me a number of questions; all are absolutely reasonable, and I am happy to respond to them.

In a situation where someone has already received a top-up to £75,000, the hon. Member is right to say that the appeals scheme would not be available. It is a choice between the two best methods of redress and satisfaction for the postmaster. I recognise what the hon. Member has said—that, given the issues with the speed of delivering redress, having that system clogged up would not be satisfactory to anyone—but I think that both options represent reasonable ways forward for people who are in that position.

The hon. Member asked specifically about the remit of the appeals scheme, and I have listened to what he said. The reason we are announcing today that we will take this scheme forward, but will then consult with postmasters to make sure the eligibility criteria are correct—he asked about the timeline, which is just a matter of months—is to make sure that we do not have to revisit the scheme, and can all be satisfied that crucially, postmasters themselves have confidence in it. That is the intention, so I am grateful to the hon. Member for his comments about the remit of the scheme.

The hon. Member asked about legal representation. Yes, that is part of the scheme, again learning lessons from where we have been in the past. As he knows, most of the schemes have now been adjusted to reflect that, but I absolutely take his point about new announcements.

I want to be clear about the difficulty that has existed with the Horizon convictions redress scheme. To update the House, I will give the hon. Member the figures: so far, 180 letters have gone out from the Ministry of Justice. Including those letters and the people who have registered with the Government who perhaps have not all received a letter yet, there are now 276 claimants. I will make the appeal again: while we are doing everything we can with Ministry of Justice colleagues to make sure those letters go out, people can proactively register with the Government. To be frank, this has been a frustration. When the hon. Member and I were having our conversations when we sat in different places in the Chamber, neither of us perhaps knew the state of the database and the records, and—having passed the legislation—the frustrations we would face in getting to people. However, doing so is clearly integral to sorting this out.

Finally, the hon. Member asked about the scheme reviewer. If I may, I will come back to him on that; I will write to him to tell him the up-to-date situation.

In summary, I say again that we will work with all parties and all postmasters to get redress at pace, and to learn the lessons from where things have not gone well in the past, to make sure new announcements carry the confidence of the people who really need to have confidence in them.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

Members should continue to bob if they want to be called. I am going to call everybody, as I know the Secretary of State also wants to respond to everybody. I call the previous Chair of the Business and Trade Committee.

[Liam Byrne (Birmingham Hodge Hill and Solihull North) (Lab)]

I add my congratulations to Sir Alan Bates and Lady Suzanne on what looked like a very happy day.

I welcome what the Secretary of State has set out for the House this afternoon. When our Select Committee reported back in March, we said that trust in the Post Office was fundamentally broken and that the appeals scheme needed to be independent. This is an important step in that direction, but sub-postmasters have told me this morning that there is still a problem with the time it takes to get offers back when an offer is contested. The claimant’s lawyers have a fixed amount of time to put in a claim; when that claim is contested, it is taking far too long for Addleshaws, in particular, to come back and provide a second offer. What comfort can sub-postmasters take from the Secretary of State’s announcement today? This whole House agrees that justice delayed is justice denied.

[Jonathan Reynolds]

I am grateful to my right hon. Friend, who will, I hope, see his work as Chair of the Select Committee reflected in this announcement—specifically, that we are setting the target to issue initial offers to 90% of claims within 40 working days of receiving a full claim. On the point of how that is defined, a full claim is one where, following legal assessment, it is deemed that it does not require any further evidence to assess the claim further. Once that is in, the targets, which his Select Committee rightly called for to make sure redress is delivered at speed, are part of this process.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the Liberal Democrats spokesperson.

[Tim Farron (Westmorland and Lonsdale) (LD)]

I thank the Secretary of State for sight of the statement and, indeed, for his decision to come to the House at this early stage to update us on progress.

I think it is worth saying that we are dealing with a catastrophic injustice that has affected hundreds upon hundreds of families—people who have paid with their livelihoods and, in some cases, tragically, with their lives. There is a complete lack of trust in Government, of whatever political colour, over the last 20 or so years because of this. That is why his answer to the questions raised already about the number of sub-postmasters who have been paid interim payments—only six, on the last data available, under the Horizon convictions redress scheme—is such a key issue. Likewise, as we have heard, the latest data show that fewer than one in six wrongly accused sub-postmasters have received letters confirming the quashing of their convictions.

Given this lack of trust—this mistrust—in Governments of whatever kind and in the Post Office management as a whole, would the Secretary of State also turn his thoughts to rebuilding trust in the Post Office management and in the network in the long term? In the eyes of the public, the brand of the post office is solid, but in the eyes of those who work in the industry and those who may come in as sub-postmasters, it is far less so. We were delighted in my constituency recently to see the reopening of post offices in Shap and Kirby Stephen. It was wonderful to see those two reopenings, but in Grasmere, Hawkshead and Stavely we are without post offices. In all three of those cases, it is in part because the former sub-postmaster, while not always directly affected by the Horizon scandal, but with disgust at the Post Office management, has left the industry and left those villages without a post office.

What can the Secretary of State say to this House and to the current cadre of sub-postmasters, and those who may want to join that cadre, to encourage them? Will he focus on pastoral care, financial support and other things that will bring about a package of inducements and enticements, so that those people who have felt let down so badly by Post Office Ltd management over the last 20 years will feel that the Post Office is something they can commit their lives to for the good of our communities and country as a whole?

[Jonathan Reynolds]

I am grateful to the hon. Member for that question. Specifically on the figures for the Horizon convictions redress scheme, he is right to say that there are only six claims where interim payments have been made so far, but I can assure him that I would expect that to rise rapidly following the announcement we have made, and I will keep the House informed as to all of that. I agree when he says that redress of this scandal has to link to the future of the Post Office itself. I think he is absolutely right. I mentioned in oral questions last week that I will appear before the inquiry. It is about not just an assurance on the lessons that will be learnt from the inquiry, but how that will affect decisions going forward.

Like the hon. Member, I have seen the post office network change a lot in my constituency. I was at the new banking hub in Stalybridge on Friday. I think the public support for the brand and for the people on the frontline is very strong, but the business model, as it stands, is not fit for purpose. Postmasters deliver essential services, but they do not make enough money from those essential services. I think too much of the money they make goes into the centre and does not return to the frontline in a way that is a viable business model for all of our constituencies. The issue of how the Post Office functions as an organisation has to be tied not just culturally to the reforms and redress we are all seeking to deliver, but to the business model.

[Kate Osborne (Jarrow and Gateshead East) (Lab)]

I welcome today’s statement on the appeals process, and thank Ministers for their engagement with me on this issue and in advance of the meetings we will have later this week. Horizon victims are understandably wary of Post Office involvement in the compensation schemes, so can the Secretary of State confirm that the appeals process he has announced today will be completely independent of the Post Office? As well as pushing for Horizon victims finally to get full compensation, what work is the Department undertaking to ensure that people are held to account for their roles in this scandal?

[Jonathan Reynolds]

I thank my hon. Friend for her question and recognise her contribution on this issue over many years. She is right to say that the appeals process I am announcing today will be run in-house by the Department for Business and Trade. Obviously, information will need to be provided by the Post Office, but an in-house scheme will be delivered. On redress, we are all following Sir Wyn William’s inquiry closely. We will need that to conclude and essential information will come out of it. After that, there will need to be a way to ensure that those findings, whatever they may be, are honoured in full and that we learn from them. In a number of cases, there is a need to hold people to account for their actions throughout the scandal.

[Liz Saville Roberts (Dwyfor Meirionnydd) (PC)]

Dewi Lewis of Penrhyndeudraeth is a former sub-postmaster who endured four months of imprisonment and had to wear a tag for another four months for a crime he never committed. He has not wanted me to raise his case in the Chamber before, because he said that to have his hopes raised and then dashed would destroy him: two weeks ago, he got a letter, I am glad to say, to say that his convictions were quashed. But the damage that has been done to the reputation of the Post Office in rural Wales is now so immense that people are no longer prepared to work in post offices. I welcome that the Secretary of State says that he believes the business model is no longer fit for purpose, but how can we be sure that we will have strategic planning to serve those communities that were once served so well by people like Dewi Lewis?

[Jonathan Reynolds]

I recognise very much what the right hon. Member is saying. I have had personal friends who were directly affected by this issue. Even though I was their MP as well as their friend, they did not feel able to tell me about it because they were so concerned about the impact on their reputation—they could not even tell a friend who was a Member of Parliament, even though the issue was clearly affecting their lives very significantly. I am sure that, like me, she has had situations where there is one provider of postal services in a relatively rural area—I represent Greater Manchester as it gets out towards rural Derbyshire—and people want the service to continue, but for various business reasons the provider is moving on. It is sometimes hard to find someone willing to take that business on, not just because of the scandal, but because of the business model. I assure her that the work we are already doing is about the future and recognising that, and making sure we have people in charge who recognise that that has to change. It is going to be a substantial piece of work for me and the Minister, but it is essential. We could not just provide redress for this scandal, without looking to the future and making sure we get this right.

[Grahame Morris (Easington) (Lab)]

I thank the Secretary of State for this statement. I also have constituents who are affected and I am grateful for the information about the appeals system. What steps are Ministers in the Department taking to secure the future of the Post Office network, and to reassure people who are considering becoming postmasters that they will not face the same unacceptable culture pervading Post Office senior management that was highlighted by the Business and Trade Select Committee, and that led to the Horizon scandal happening in the first place?

[Jonathan Reynolds]

As I have said in previous answers, we have to understand that that scepticism and concern is valid. The scale of this scandal is so large that people will challenge their Members of Parliament on how they feel about what they may be asked to do, and the risk that that poses to what is still an essential business and provider of services to all our constituents. That is key. I seek to reassure them by recognising the steps and commitment that we have to address, but also the future of a business model that delivers the kind of remuneration and operates in a way that recognises the scale of the failure in the past. If I was a postmaster, I would welcome those words, but I would want to see action. That is the only way we will be able to do that.

[Mims Davies (East Grinstead and Uckfield) (Con)]

I welcome the update to the House today. We saw through the ITV series that Lord Arbuthnot, like many, was an exemplary constituency MP and something for us to all aspire to. Many campaigned for so long in this place to recognise this scandal. I congratulate Sir Alan Bates and Lady Bates on their nuptials. Can the Secretary of State assure the House that full engagement is being undertaken with the MOJ, that the learnings are being understood and that those expecting their convictions to be quashed will hear imminently, as all our constituents will want to see justice?

--- Later in debate ---

[Jonathan Reynolds]

I very much echo the hon. Lady’s point that, if there is one bit where our political system operated well in this, it is the constituency link and the classic Member of Parliament’s surgery, although the story as a whole is clearly unsatisfactory. I recognise her words on Lord Arbuthnot and the cross-party campaign that came about. The Ministry of Justice issue is paramount and frustrating. The state of the records has delayed the process, and that is a real frustration, but she will understand that, following so much failure, if a case emerged where a letter was sent out incorrectly after all that people have been through, that would clearly be outrageous. Given I am now accountable for the scheme, I absolutely cannot have that. I could talk about some of the things we have inherited, but I do not think that is particularly helpful. I will simply give the hon. Lady the assurance that she rightly seeks: this issue is of maximum importance and we are working at pace with Ministry of Justice colleagues and the devolved authorities in relation to justice systems around the United Kingdom.

[Clive Efford (Eltham and Chislehurst) (Lab)]

I welcome the Secretary of State’s statement. I heard what he had to say about the involvement of the Post Office in the appeals process, but may I press him a little further? Given the mistrust in the Post Office that has built up over many years, even though the Post Office may only be providing information to the Department, is his Department satisfied with how the Post Office is providing that information? Have there been any occasions where the Secretary of State has had to challenge the Post Office? That is the degree to which people mistrust the Post Office in this process, and that has been the case for many years.

[Jonathan Reynolds]

I think my hon. Friend will have heard in my earlier answers that we have chosen to deliver this scheme in-house in the Department for Business and Trade, reflecting the concerns he is reasonably expressing. To command people’s confidence, they want to see the schemes not only set up, but delivering. That is why the updates to the House on how we are progressing under each scheme are so important, and I commit to doing them regularly.

[Gregory Stafford (Farnham and Bordon) (Con)]

I associate myself with the comments made on Lord Arbuthnot, who is a predecessor but one for part of my constituency. The Secretary of State has spoken about the letters quashing convictions, but does he not understand how important it is that those waiting for the letters get them swiftly? Will the Lord Chancellor come to the House to give us an update on the progress being made with those letters?

[Jonathan Reynolds]

The hon. Gentleman will have heard my answers. He would surely agree that to get things wrong with these cases would be a terrible problem. Some of the errors and the problems that have been caused have been a frustration, but I want to assure him. I think it is better, in matters relating to this scandal, that it is the Department for Business and Trade, given the interests of Members, that provides the updates on these matters. However, I can assure him that work is proceeding at pace, and people can proactively register their credentials to ensure that there is no delay if they are in a position where they know they are one of the wronged parties.

[Natasha Irons (Croydon East) (Lab)]

I thank the Secretary of State for the update today. My constituent Mahesh, who visited me at our surgery on Friday, told us that he had been assured that his conviction would be overturned—he was wrongfully convicted under the Horizon scandal—but he is frustrated by the length of time it has taken for it to be quashed. It is preventing him from moving on with his life. Can the Secretary of State update us on what work is going on to speed up the process to quash these convictions, so that people like Mahesh in my constituency can move on with their lives?

[Jonathan Reynolds]

I very much recognise the conversation that my hon. Friend has had with her constituent, and her need and desire to progress that claim. The issue is about ensuring that the records are accurate. Cross-referencing between Ministry of Justice databases and court documents is proceeding apace. If her constituent has not yet had a letter and needs to register their credentials, they can do so, but I assure my hon. Friend that this is of maximum priority.

[Graham Leadbitter (Moray West, Nairn and Strathspey) (SNP)]

I thank the Secretary of State for the statement. It is welcome that the appeals process has been set out. I pay tribute to my SNP colleague and former MP, Marion Fellows, who, as many Members will know, put considerable effort into the issue. She has provided me with wise counsel on it. How satisfied is the Secretary of State with take-up so far—there is obviously some helpful detail in the statement—and what awareness campaigns are planned? There may still be people out there who are not aware that they can claim compensation. It is important that as many methods as possible are used to get to them.

There have recently been complaints, even from legal experts, that the application form for redress is overly complex, and that even experts would struggle to fill it in. Can the Secretary of State look to simplify it, obviously without our getting away from the key points, and bearing in mind the data that need to be collected?

Finally, I associate myself with the comments made about the wider impact. It is only a week since the Grenfell report’s publication, and mention was made during the previous statement about the covid contracts. These issues go right to the heart of trust in the Government, which is a really important point to address.

[Jonathan Reynolds]

I echo the hon. Gentleman’s comments about Marion Fellows and her contribution to the scheme. He asks how satisfied I am. I will not be satisfied until everyone has had redress; it is as straightforward as that. There was a group of about 2,417 claimants under the Horizon shortfall scheme, but following the television drama, a whole range of people who were not aware that they were eligible came forward, which was incredibly positive. I think that over 1,500 people came forward. Indeed, Members may still be finding people who are coming forward because of the awareness that raised. We should be thankful for the power of the arts to get a message out to people. Given the situation, none of us can be satisfied until we can be sure that we have got redress to everyone. That is what this Parliament collectively has to commit to.

[Markus Campbell-Savours (Penrith and Solway) (Lab)]

Will the Secretary of State outline what the Government are doing to investigate the predecessor Capture system?

[Jonathan Reynolds]

Members may know that Capture was the precursor to the Horizon software. It is of concern to us, and we are investigating. The forensic accountants appointed to look into the issue are due to report fairly soon, and as soon as we have their findings, we will be able to update the House on steps that may be necessary.

[Jim Shannon (Strangford) (DUP)]

I thank the Secretary of State very much for the statement, and for the clear commitment to closure for all those affected. He said that the role of Government is to do right, to seek justice and to defend the oppressed. I say amen to that; that is exactly the Government’s role. It is past time that our handling of the scheme came to an end, but that can happen only when every affected postmaster and postmistress has been restored reputationally and financially, and when lessons have been learned to ensure that our reliance on computers is never again the vehicle of persecution. Will the Secretary of State assure me and the House that that has been done, and is in place right now?

[Jonathan Reynolds]

I thought that the hon. Member might recognise the words from Isiah that I used in the statement. The failure that goes to the heart of what we are talking about today is not just about the reliance on computer systems over the testimony of people on the frontline; it is also about the culture of organisations and how government operates. We will definitely turn a page on all of that, but there are Members in the Chamber who, like me, have been here not just for infected blood and the Grenfell statement last week, but for Hillsborough and Bloody Sunday.

We must reflect on what has been a very difficult set of findings. I think that we can commit to making sure that we learn the lessons from them, and take them forward. That is the challenge for all of us who believe that we are here to do good, and to do as I said in the statement. There is more to do on that, but we can move in the right direction, and that is certainly what I and my Government Ministers will do.

[Ms Polly Billington (East Thanet) (Lab)]

As my right hon. Friend will be aware, sub-postmasters such as my constituent have experienced an enormous amount of devastation without even having been convicted—30 years of reputation absolutely destroyed. Although he has had some compensation, he still does not know whether he has had the right amount of money, and whether he is paying the right amount of tax, and he still does not have an admission of responsibility and failings from the Post Office. How much of that will be dealt with by this redress scheme?

[Jonathan Reynolds]

I understand the situation, and the need to have different redress schemes to correct specific problems. I understand the constituent’s sentiments, as described by my hon. Friend. I would like to make sure that we are doing everything we can to provide the answers in every case. If she writes to me about that case, I will look into it personally and advise her, so that she can advise her constituent to make sure that, as far as possible, we give the right advice.

[Rupert Lowe (Great Yarmouth) (Reform)]

I am delighted to hear from the Secretary of State that progress is being made. Recompense, apology and all the things that should go with that cannot come too soon. This House needs to remember that but for the tenacity and the persistence of Sir Alan Bates, this issue may never have come to light. This is an issue of the state versus the individual. Given the loss of confidence in the state, it is essential that the House reassures individuals that the state will not bully them. That means a full investigation, and people who brought arguably malicious prosecutions must be brought to book. I would like his reassurance that that will happen.

[Jonathan Reynolds]

I very much agree. This is a major scandal, and we must ensure that the wider lessons and the wider lack of trust, which he correctly mentioned, are addressed in our response. That is fundamental. I have said many times that we might never have discovered the scale of this injustice were it not for the campaigners. That is shocking, and we must all reflect very deeply on that.

[Blair McDougall (East Renfrewshire) (Lab)]

I thank the Secretary of State for his comments, and for his recognition that the issue is about more than redress; it is about the restoration of trust. It has cast a long shadow in constituencies across the country. In my constituency, after years of sub-postmasters desperately trying to keep post offices open in the face of programmes of closures, we now face a challenge to get people to go into them. What is his message to those people, and those wondering whether the culture has changed? What lessons are the new Government drawing, across the public sector, to ensure candour, and to make sure that the culture that we saw in the Post Office is not replicated anywhere else?

[Jonathan Reynolds]

I recognise very much what my hon. Friend says. As I said in my earlier answers, there is an absolute need to not just provide redress but learn lessons for the future of the Post Office and all institutions of the state. Crucially, we must ensure that a business model is in place that rewards postmasters with a decent return for providing an essential service, in an organisation that supports their frontline activities and gives them the income and the prosperity that they deserve for that.

[Robin Swann (South Antrim) (UUP)]

The Secretary of State knows that 26 postmasters in Northern Ireland were wrongly convicted. I thank him for his work with the Northern Ireland Executive to bring forward the necessary legislative process. I seek his reassurance that the redress scheme will be equally open to Northern Ireland postmasters who were wrongly convicted because of a UK-wide issue. Will the redress scheme apply to them as well?

[Jonathan Reynolds]

People are aware that it is fairly challenging to have a situation in which justice is devolved across the United Kingdom. At times that has very much affected the debate in this House. I believe that what the hon. Gentleman says is the case, but I will write to him about the Northern Irish situation to give him the information that he needs.

[Jim Allister (North Antrim) (TUV)]

I welcome the Secretary of State’s announcement and look forward to things proceeding to the necessary conclusion. Redress is about righting wrongs, but there was more than one wrongdoer—there was also Fujitsu. Last week, the Prime Minister told us that firms that had fallen short in relation to Grenfell would be removed from Government contracts. Bearing in mind Fujitsu’s actions and that there was at least one suicide, will it be treated in the same way? Will there be redress against its unlawful actions as well?

[Jonathan Reynolds]

I agree with the hon. Member. That is a crucial and important question. I welcome Fujitsu acknowledging its moral responsibility in relation to these matters. I understand that it is participating fully with the Sir Wyn Williams inquiry. We will need that inquiry to conclude. We should not pre-empt that in any way and take any decisions before that process has been gone through properly, given that we all support it. Accountability will flow from the inquiry. It will be an important step and it will affect many, many organisations that have been part of this story. Fujitsu will clearly be one of them.