Backing Business to Create Economic Growth
Debate between Judith Cummins and Frank McNally(3 weeks, 3 days ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Frank McNally (Coatbridge and Bellshill) (Lab)
I welcome the King’s Speech last week. In a volatile world, the question of domestic economic resilience is paramount. Whether it is the conflict in the middle east driving energy price instability, supply chain disruption or a rise in global uncertainty, Britain cannot afford inaction or simply to hope that global shocks will be contained or pass us by. We need an active concordat between Government, business and communities to strengthen our resilience and ensure our prosperity.
The King’s Speech set out an agenda focused on growth, investment, infrastructure, innovation and economic security. Crucially, it recognised that growth must exist not just in Whitehall spreadsheets or the boardrooms of financial institutions in the City; it must be felt in communities like Coatbridge and Bellshill. For decades, businesses—particularly small and medium-sized ones—have felt that the Government work around them rather than with them, so one of the most important measures announced in the King’s Speech was the small business protections Bill on late payments.
For too long, businesses have been pushed to the brink because they completed work and paid wages and suppliers, but waited months to be paid themselves. According to the Small Business Commissioner, late payments cost the UK economy £11 billion annually, with small business owners spending around 86 hours each year chasing unpaid invoices. That is time that is not spent innovating, hiring, exporting or growing. The proposed reforms include stronger powers for the Small Business Commissioner, mandatory interest on late payments and maximum payment terms, and they all represent a positive step.
I also welcome the regulating for growth Bill and the plans being put in place to place a greater emphasis on innovation. That is particularly important for emerging sectors like AI, clean energy, advanced manufacturing and defence technologies. I certainly hope that the Government look to prioritise some of the R&D on clinical research for motor neurone disease—an issue that is very close to my heart.
Innovation matters greatly for post-industrial communities in North Lanarkshire, Scotland’s fastest-growing economy. We are already seeing there the potential of advanced industry and digital infrastructure, with Scotland’s first AI growth zone and companies like Cairnhill Structures in my constituency, which is rebuilding bridges in Ukraine that have been destroyed by Russian forces.
I welcome the support for clean energy investment and for securing domestic steel production, which reflects an understanding that modern economies cannot grow on weak foundations. Recent global events have exposed the dangers of over-reliance on volatile international energy markets, so expanding home-grown clean energy and supporting a new generation of nuclear power is not just sound environmental policy but sound economic security policy. Certainly in Scotland, the SNP should end its decades-long dogmatic opposition to new nuclear.
Growth is strongest and most sustainable when working people are secure, skilled and fairly paid. We have made great progress through the Employment Rights Act and the uplifts to the national and living wages, but we must go further, particularly on apprenticeships. It is a national scandal that apprenticeship starts for advanced manufacturing dropped by 40% under the previous Tory Government and by 30% in Scotland under the SNP. We have to redouble our efforts to end the erosion we have seen under Opposition parties, but we also have a moral obligation to support the 1 million young people who are not in education, training or work to reach their potential. That will be a critical act for transforming our economy.
This King’s Speech recognises that economic security, national resilience and living standards are deeply intertwined. It recognises that Governments have a responsibility not merely to observe the economy but to help to shape the conditions for growth, innovation and long-term prosperity. In a world that is becoming more uncertain by the day, that approach is not ideological—it is necessary.
