Stellantis Luton

Debate between Jonathan Reynolds and Richard Holden

Wednesday 27th November 2024 Commons Chamber

[Jonathan Reynolds]

I assure the hon. Member that I will do everything I can to bolster consumer confidence. I say all the time that products made in the United Kingdom are great. If people are unaware of just how great they are, they should book themselves a test drive, or visit the production lines and see how brilliant they are. The Agratas factory is an incredible investment and will be significant. I have always said that for the long-term future of this sector we must make batteries in the United Kingdom. Over the long term, vehicles will be made where the batteries are made, and that is a key part of the industrial strategy for the sector.

I cannot make an announcement on the plug-in grant as that is not covered by the Department for Business and Trade, but I confirm to the hon. Member that across the Government, whether in the Treasury, the Department for Transport or the Department for Energy Security and Net Zero, we are all united in wanting to make the transition a success, and we are willing to listen to hon. Members like herself and to industry about the policies that are necessary to do that.

[Mr Richard Holden (Basildon and Billericay) (Con)]

In his statement, the Secretary of State mentioned the job losses at Ford in Dunton in my constituency, and I thank the Minister for Industry for speaking to me on the phone earlier this week about that. I welcome the fast track of the review that the Secretary of State is putting forward. I agree with my right hon. Friend the Member for Rayleigh and Wickford (Mr Francois) and the Chair of the Business and Trade Committee, and I have spoken to manufacturers about potential Chinese electric car dumping in the UK. Will the Secretary of State comment on that? Concerns have also been raised with me by local car manufacturers about the increase in vehicle excise duty on some models in the Budget. Is there any possibility that some of those measures could be looked at again, as they are having an impact on the demand for such vehicles in the UK?

[Jonathan Reynolds]

I am grateful that we have been able to get the right hon. Gentleman some time with Ministers regarding the serious situation affecting his constituents. Members of this Government will always take that seriously, as I believe Ministers did under the previous Administration. Vehicle excise duty is a question for the Treasury and the Chancellor, but the differential that exists from changes in the Budget between internal combustion engines and electric vehicles is one of the demand incentives that now exist within the system. Everyone would recognise that the Government should do everything they can to support industry during the transition, and such measures are part of the answer. If the right hon. Gentleman has specific concerns, we will always be willing to listen to those.

Reducing Costs for Businesses

Debate between Jonathan Reynolds and Richard Holden

Tuesday 11th January 2022 Commons Chamber

[Jonathan Reynolds]

My hon. Friend is right. There is already a cost of living crisis gripping the country, and it has been brought on by the frightening increases in energy costs and inflation following a decade of poor Government decisions.

It is obvious that this requires a response from the Government. Surely they cannot be considering allowing the average energy bill to hit £2,000. Surely they cannot be willing to see industry halt production or to have inflation hit double-digit figures. Frankly, it has all gone a bit Ted Heath. Where are the Government?

In contrast, we have made it very clear how Labour would act. We would take VAT off fuel bills. We would take off the supplier of last resort costs, too, and we would increase both the amount and the eligibility for the warm homes discount. I regret that Conservative Members have said they cannot vote for that, because Labour’s plan would have saved the average household £200 and the worst-hit households £600. The Government have already rejected that plan today, so please let us hear the alternative. It feels like the Government are asleep at the wheel, or perhaps they are just too bogged down in constant crisis and scandal to get the grip our economy needs.

[Mr Richard Holden (North West Durham) (Con)]

The hon. Gentleman is setting out a case, but the crucial thing is that the Government have a plan and he has not set out an alternative. So far the alternative sounds to me like extra borrowing. If it is not extra borrowing, where will he get the money to do everything he proposes today?

[Jonathan Reynolds]

The hon. Gentleman is more astute than that. He will have seen the plan to take revenue from the Exchequer windfall and the VAT receipts the Government have already received. We will increase money coming from the North sea oilfield with a windfall tax. He will know the North sea is one of the world’s most profitable jurisdictions in which to extract oil and gas.

There is something else the hon. Gentleman is not telling the House. If the Government allow the national insurance rise to go ahead, that alone is estimated to put two additional percentage points on inflation. He knows that will trigger a range of further Government expenditure, as well as causing major pain to households. With respect, I do not think he has a case.

The businesses I have spoken to this week are understandably worried that a squeeze on households of this scale will adversely affect consumer spending. In addition, as we have heard, businesses are directly affected.