Oral Answers to Questions

Kemi Badenoch Excerpts

Thursday 14th September 2023 Commons Chamber

[Jon Trickett (Hemsworth) (Lab)]

1. What assessment she has made of the adequacy of her Department’s implementation of policies supporting levelling up.

[The Secretary of State for Business and Trade (Kemi Badenoch)]

I warmly welcome the new shadow ministerial team—it is a slimmed-down team from what we have been used to, but I welcome them all. My Department is focused on growing the economy by attracting global investment, promoting exports and creating the right regulatory business environment. Over the past five years we have supported more than 6,000 foreign direct investment projects, creating more than 280,000 new jobs across the UK. Just last week, the Department for Business and Trade supported Stellantis’s £100 million investment in an electric vehicle production plant in Ellesmere Port, showing the direct role we play in helping to level up across the regions and nations of the UK.

[Jon Trickett]

Like many hon. Members, during the recess I visited various sites in my constituency, including Langthwaite business park, which is an immensely successful business park with more than 50 businesses now employing almost 2,000 people. It is adjacent to two former pit villages, South Elmsall and South Kirkby, where deprivation is still deeply rooted. The people who live in those villages are not able to take advantage of the jobs created by Wakefield Council, Mohan De Silva and Karen Harrison. What Government programmes has the Secretary of State put in place, or can she put in place, to ensure there is a linkage between areas of deprivation and new jobs?

[Mr Speaker]

I think you need an Adjournment debate.

[Kemi Badenoch]

There is a lot that we are doing, and I am sorry to hear that the hon. Gentleman feels that villages in his constituency still are not able to access much of what we have given. The West Yorkshire devolution deal provided about £1.14 billion of investment and we also had a shared prosperity fund across West Yorkshire. I urge him to speak to his local council, because that is the vehicle through which many of these opportunities will be provided, but if he has a specific business issue that he thinks is affecting those companies and those villages, we are happy to look at it in more detail.

[Mr Speaker]

I call the shadow Minister.

[Afzal Khan (Manchester, Gorton) (Lab)]

My home city of Manchester was built on export and trade, but, as a result of the Tories’ mismanagement of the economy, apathy towards the export industries and neglect of everywhere outside the M25, the value of exports from London is more than three times that of the north-west. Does the Secretary of State honestly believe that she and her colleagues are committed to levelling up the whole of the UK, or will she admit that the Tories do not care about the benefits of trade reaching everyone in the United Kingdom?

[Kemi Badenoch]

I fundamentally disagree with the hon. Gentleman. He mentions Manchester; since October 2022 we have invested £2.6 billion into projects across England and agreed landmark devolution deals for Greater Manchester. He should be speaking to the Mayor of Greater Manchester to find out exactly why all that we are doing is not reaching the people in his constituency.

[Holly Mumby-Croft (Scunthorpe) (Con)]

2. What steps her Department is taking to support the steel industry.

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[Dame Andrea Leadsom (South Northamptonshire) (Con)]

4. What steps she is taking with Cabinet colleagues to help increase international investment in Northern Ireland.

[The Secretary of State for Business and Trade (Kemi Badenoch)]

Just yesterday I was in Belfast, where my Department delivered the Northern Ireland investment summit in partnership with the Northern Ireland Office and Invest Northern Ireland. I would like to take the opportunity to thank the Secretaries of State for Levelling Up, Housing and Communities and for Northern Ireland for their support in making it a success. Five hundred delegates, including investors from 24 countries around the world, attended to see at first hand the unique opportunities for inward investment in Northern Ireland across a range of sectors, including life sciences and advanced manufacturing.

[Dame Andrea Leadsom]

What consideration has my right hon. Friend given to creating an investment zone that covers the whole of Northern Ireland to bring much needed investment to that much loved part of the United Kingdom?

[Kemi Badenoch]

It is a very interesting idea. Investment zone policy is owned by the Department for Levelling Up, Housing and Communities, so I will raise it with the Secretary of State there and the Secretary of State for Northern Ireland. Officials from the UK Government and the Northern Ireland civil service continue to work closely to explore developing investment zone policy in the country. The lack of a functioning Executive there has, of course, limited the scope and nature of engagement on investment zones. If the Executive is restored, we will work together to progress an investment zone at pace, and if it is not formed, we will set out different plans in due course.

[Jim Shannon (Strangford) (DUP)]

First, I thank the Secretary of State and the Government for the investment conference they held in Belfast over the last two days. It clearly shows a commitment to Northern Ireland, and I am very pleased to see that. When it comes to international investment, we are happy to see in Northern Ireland that Harland & Wolff, which has specialised in ship repair and shipbuilding for some years, has recruited almost 1,000 people in the last few months. What discussions has the Secretary of State had with the relevant Department back home to ensure that Northern Ireland can play its part in the UK shipbuilding industry and therefore benefit from that investment?

[Kemi Badenoch]

The hon. Gentleman is quite right: this is an area where Northern Ireland has a comparative advantage. As we hosted the summit, we all looked out on the docks, and we could see that shipbuilding is integral to the country. UK Export Finance is supporting many of the companies that build ships and want to export this magnificent UK product all across the world. My hon. Friend the Minister for Industry and Economic Security spoke about the UK shipbuilding guarantee. We have been talking about this all week. Maritime investment is key, and if the hon. Gentleman would like further details on what we are doing that has an impact on his constituency, we can provide him with that information.

[Mr Speaker]

I welcome the shadow Minister to her new position.

[Rushanara Ali (Bethnal Green and Bow) (Lab)]

Thank you, Mr Speaker. Business investment is lower in the UK than in any other G7 country and we rank 27th out of 30 OECD countries, ahead of only Poland, Luxembourg and Greece. More than half a trillion pounds-worth of under-investment by Government and business has left our economy trapped in a growth doom loop. What is the Secretary of State doing to undo this damage?

[Kemi Badenoch]

What the hon. Lady did not say is that business investment is increasing at a faster rate than in other countries. She is right that investment has been lower here, but that is why the Chancellor brought in policies such as full expensing to tackle this issue. She also did not mention the fact that we are the top destination for investment across financial services and many other areas. The UK is actually doing very well when it comes to inward investment, and we will continue to create policies that ensure we stay at the top of the pack.

[Theresa Villiers (Chipping Barnet) (Con)]

5. What recent progress she has made on regulatory reform.

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[John McDonnell (Hayes and Harlington) (Lab)]

10. What plans she has for accession to the comprehensive and progressive agreement for trans-Pacific partnership.

[The Secretary of State for Business and Trade (Kemi Badenoch)]

I signed the UK’s accession protocol to the CPTPP in New Zealand in July. We are now taking the necessary steps to ratify our accession agreement at the earliest opportunity. We expect it to enter into force in the second half of next year.

[John McDonnell]

I thank the Secretary of State for her response. The CPTPP contains investor-state dispute settlement provisions which allow corporations, as she knows, to sue national Governments through a largely secretive parallel legal system if they consider that Government policies threaten their future profits. Of the new agreement member states, Canadian countries have used the ISDS particularly aggressively, bringing 65 cases, the majority of which have been brought by mining and fossil fuel firms against the energy and environmental policies of various Governments. Will the Government consider negotiating a side letter with Canada, as they already have with New Zealand and Australia, to disapply the ISDS provisions in order to ensure the UK Government’s right to regulate is not constrained by powerful investors and corporations?

[Kemi Badenoch]

We have passed the stage where we will be making any changes; we are now trying to ratify the protocol. But the right hon. Gentleman should be reassured: the Government have always been clear that when we negotiate investment protection we do so in a way that does not hinder our right to regulate in the public interest. The UK already has investment agreements containing ISDS provisions with seven of the 11 CPTPP countries and we have never received a successful claim from any investors of CPTPP countries, or in fact investors of any other country with which we have ISDS commitments.

[Martin Vickers (Cleethorpes) (Con)]

I congratulate my right hon. Friend on the progress made with CPTPP. Can she outline what plans the Department has to make UK companies aware of the opportunities that the agreement opens up for them?

[Kemi Badenoch]

My hon. Friend raises an important point, because most of the time, people ask me what CPTPP stands for, let alone what it is and how they can use it—[Interruption.] Well, not my hon. Friend the Member for Lichfield (Michael Fabricant). We would like to make sure that people are aware of it, so they can utilise this free trade agreement as soon as it is on our statute book and ratified across the 11 countries. That is something that our export commission and support service in the Department for Business and Trade will be carrying out, and we will also be supporting MPs in their constituencies during International Trade Week to highlight opportunities that come from all our free trade agreements.

[Michael Fabricant (Lichfield) (Con)]

11. What steps her Department is taking to support business exports to the US.

[The Secretary of State for Business and Trade (Kemi Badenoch)]

[Interruption.] Pardon me for one second; there is a technical failure. The US is our largest trading partner, with trade reaching more than £290 billion. We have already succeeded in agreeing a solution to the section 232 tariffs on UK steel and aluminium and removed the long-standing US ban on UK lamb. In fact, just yesterday, I was speaking to President Biden’s special envoy Joe Kennedy about how we can increase trade and investment in Northern Ireland. We also have an SME dialogue next month between our two countries, supporting UK and US businesses to find export opportunities in each other’s markets.

[Michael Fabricant]

That is really good news, actually. In other good news, I learned this morning that Britain has overtaken France as a manufacturing country. In order to take full advantage of that, how can we use the nine trade representatives in the United States at our embassy and our consulates even more to encourage bilateral trade?

[Kemi Badenoch]

My hon. Friend is right. We have trade ambassadors and trade envoys working to ensure that we are fully utilising the opportunities that exist across our relationship with the US. In fact, our envoy to the US has been helping and supporting with a memorandum of understanding with Florida, which we are hoping to conclude shortly. If there are specific things he thinks we can do to assist, I would be happy to meet him and organise even more engagement that will help facilitate UK-US trade.

[Jeff Smith (Manchester, Withington) (Lab)]

13. What steps she is taking to increase trade with European countries.

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[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

T1. If she will make a statement on her departmental responsibilities.

[The Secretary of State for Business and Trade (Kemi Badenoch)]

The Windows update is now complete at the Dispatch Box, Mr Speaker!

As Secretary of State for Business and Trade, my priority is to support inward investment into all regions and nations of the UK. This week the Department for Business and Trade, in partnership with the Northern Ireland Office and Invest Northern Ireland, delivered the investment summit, which I referred to earlier. This momentous event showcased to more than 200 international investors the wealth of opportunities and talent that exist across the breadth of Northern Ireland. A young and talented workforce, competitive operating costs and unparalleled access to global economies make it an exceptional place to grow a successful business. I met representatives from US-owned aerospace manufacturer Spirit and several financial services companies that have established a base there. From Derry/Londonderry-based tech firms to Belfast budding creative companies, we boast a thriving ecosystem of world-class businesses across numerous sectors.

[Chi Onwurah]

This weekend, like most weekends, I will visit Wilko in Newcastle city centre. Should I explain to the fantastic staff there and their appreciative customers that mass redundancies and empty shopfronts is what the Conservatives mean by levelling up?

[Kemi Badenoch]

We are all very sad that a well-known business such as Wilko, with a strong presence on many high streets across our constituencies, has had to enter administration, and my thoughts are with employees who have been made redundant. Our Department has been not just supporting the business but discussing the best way forward with unions. We have been supporting by helping to find bidders. The fact is that sometimes these things do happen. It is not a reflection of the Government. In fact, making sure that people have somewhere to go to is how this Government are providing support.

[Dame Andrea Leadsom (South Northamptonshire) (Con)]

T2. Do Ministers agree that delegates to the Parliamentary Partnership Assembly, which was set up under the trade and co-operation agreement with the EU, should be there to promote Britain’s interests overseas, and that those who do not want to do so and who simply want to be apologists for Brexit and to act against the UK’s interests should leave the PPA?

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[Mr Speaker]

With a question that long, we will be celebrating the next one.

[Kemi Badenoch]

My hon. Friend is keen for a deal by Diwali, but as the Prime Minister and I have been at pains to say, it is about the deal, not the day. We are working as much as we can to get a deal, but we will not do so by sacrificing British interests. The deal has to work for both the UK and India. I met the Indian Commerce and Finance Ministers to ensure that we create a mutually beneficial deal.

[Deidre Brock (Edinburgh North and Leith) (SNP)]

T3. Recent figures show that small businesses in the UK are owed more than £32 billion in late payments. When coupled with a 40% rise in energy costs and other inflationary pressures that I mentioned before, that is making running small businesses in my constituency impossible. On Tuesday, the EU set out its SME relief package, which will help to tackle the problem. What is the Minister doing to combat late payments for SMEs?

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[Theresa Villiers (Chipping Barnet) (Con)]

As chair of the all-party parliamentary group for events, can I highlight the huge benefits the sector brings us in promoting trade, exports and inward investment? Will the Department do more to promote the UK worldwide as a great place to bring international events, business meetings and conferences?

[Kemi Badenoch]

My right hon. Friend raises a good point. The events industry is often overlooked, yet it is a great export opportunity. Those are some of the things I am going to raise with the Board of Trade, which is meeting next week. It is about promoting the best of British internationally. Events is one of the areas we can take a closer look at.

[Ms Anum Qaisar (Airdrie and Shotts) (SNP)]

T6. Airdrie and Shotts is home to some fantastic local businesses. Recently, I had the pleasure of visiting Christie’s bakery and sampling some of its delicious domino cake. I also met Angela from Gin Blossoms, a florist on Alexander Street. Small businesses across Scotland play a vital role in the local economy, yet many are feeling the brunt of the rise in prices of raw materials caused by increasing import-export costs. To be frank, this is another direct impact of Brexit that Scotland did not vote for. Can the Minister outline how the UK Government will compensate businesses for the damaging losses that Brexit continues to cause?

[Peter Aldous (Waveney) (Con)]

In the period leading up to 2021, sector deals were a very effective means of boosting productivity, innovation and skills in such sectors as aerospace, AI and offshore wind. What plans are there to review, revitalise and extend those effective public-private sector partnerships?

[Kemi Badenoch]

My hon. Friend raises a good point. Those sectors are critical for the UK economy. While we did have plans around sector deals, I would focus on the Chancellor’s five sectors that he thinks will drive growth in the UK. I am happy to write to my hon. Friend specifically about what impact those sectors will have in his constituency.

[Gavin Newlands (Paisley and Renfrewshire North) (SNP)]

T7. We know that phoenixing, unpaid-for services rendered, puts a burden on legitimate SMEs, but it also puts a burden on the taxpayer through unpaid taxes. That is acutely felt by all hard-pressed local authorities which have significant unrecoverable debt owed. Given that the Minister did not accept my amendment to the Economic Crime and Transparency Bill, can he explain what the Government are actually doing to prevent this practice?

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[Jeff Smith (Manchester, Withington) (Lab)]

T8. Yesterday, I joined my hon. Friend the Member for Cardiff West (Kevin Brennan) on the all-party parliamentary group on music for the launch of UK Music’s impressive “Manifesto for Music”. The opportunities and risks of AI are a key issue for the industry. Will the Government commit to musicians having a voice and a place at the table for the AI summit in November?

[Kemi Badenoch]

That is certainly something we can look to do. There are many concerns about what will happen to copyright and intellectual property once AI continues to advance in this area. The hon. Member raises an important point. If he writes to me specifically, I will make sure that the Secretary of State for Science, Innovation and Technology gets to see that so we can incorporate it.

[Michael Fabricant (Lichfield) (Con)]

I notice, by the way, that the Americans refer to it as the trans-Pacific partnership, which I think is actually a lot shorter and better than what we call it. Have there been any discussions at all with the United States Administration to ask whether they might eventually rejoin the partnership?

[Kemi Badenoch]

My hon. Friend is right. It used to be called the TPP, and it was the Canadians who added the “comprehensive and progressive” to make it quite a mouthful. The question of what the US wants to do on trade deals comes up time and again. The US has said that it will not sign any free trade agreements even though it was initially considering the TPP. That is why the announcement of the Atlantic declaration by the Prime Minister and President Biden is key. That is our new vehicle to form a trade partnership, and my Department is working actively across Government and with our counterparts in the US to make sure that that delivers for the UK.

[Andrew Gwynne (Denton and Reddish) (Lab)]

Many small businesses, particularly in the retail and hospitality sectors, still rely on high street banking. Earlier this month, the last bank in Denton town centre—the Halifax—closed. It was not just the last one in Denton but the last one in the Denton and Reddish parliamentary constituency, leaving small businesses without access to high street banking. It is not good enough, is it?

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[Patrick Grady (Glasgow North) (SNP)]

Ministers have spent the past hour or so telling us, in the face of overwhelmingly contrary evidence, that Brexit is just the most wonderfullest thing ever to have happened in the history of the entire universe. Will the Secretary of State level up with us for a minute and tell us whether there is anything at all about Brexit that she finds regrettable, disappointing or frustrating?

[Kemi Badenoch]

The hon. Gentleman is right—there is one thing that I find regrettable, and it is the fact that he continues to bang on and on about this even after the rest of the world has moved on post the referendum. The fact is that we have left the EU and we are not going back into it—certainly not under the terms that would require us to do so. He should be focusing on the benefits of Brexit, such as having more control over our laws, our borders and our money, as well as being able to deregulate, including through our smarter regulation programme. If he looked at that, there might be opportunities he could deliver for the people of Scotland.

[Andy McDonald (Middlesbrough) (Lab)]

As the UK automotive industry wrestles with the looming increase in the rules of origin thresholds, European Commission President Ursula von der Leyen has just announced a probe into the flood of cheaper Chinese electric cars coming into the market. Although there has undoubtedly been much for the UK to welcome, with announcements from Jaguar Land Rover and BMW, what additional measures are the Government taking to ameliorate the impact of cheaper and heavily subsidised Chinese imports?

[Kemi Badenoch]

That is an excellent question, because it raises something fundamental. The transition to net zero will change the nature of the UK supply chain and, as I said earlier this week, China poses a systemic challenge here. The path to net zero creates a risk of even greater reliance on China, especially when it comes to the battery manufacturing needed for zero emission vehicles. We cannot be naive about that. That is why I am working hard to ensure not only that business competitiveness is at the heart of our transition, but that British national interests come first. We cannot depend on a single country. We must protect our national security, so we are working with like-minded allies. My hon. Friend the Minister for Industry and Economic Security has spoken about our critical minerals strategy and we are working to diversify and build those supply chains. That is what the Atlantic declaration, which I mentioned earlier, is also about. We are very aware of this point, but I think it is important to reinforce it.

[Jim Shannon (Strangford) (DUP)]

I thank the Secretary of State very much for the encouraging positivity of her answers—[Interruption.] At least, most of us are encouraged.

Great Britain is Northern Ireland’s main export market for agricultural goods, accounting for some 64.1% of all exports. What discussions has the Secretary of State had with the Department of Agriculture, Environment and Rural Affairs back in Northern Ireland to ensure consistent, free-flowing agri-trade, given the complications caused by the Northern Ireland protocol?

[Kemi Badenoch]

The hon. Gentleman is right. The first thing we want to see is the restoration of the Executive. When I was in Belfast this week, I spoke to Members of the Legislative Assembly from across the parties, and this is something they repeatedly raise. Businesses are telling us that the Windsor framework is helping, and we are working closely with the ones that still have issues. Such discussions facilitate business conversations and encourage the restoration of the Executive, which would help to drive the changes the hon. Gentleman wants to see.