Business and Trade
Kemi Badenoch Excerpts(1 year, 3 months ago)
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Kemi Badenoch
I do not think we need an audit. China is our fourth largest export market, and we are aware of the economic challenge that it poses across the world. We work with countries across the world, but we have a pragmatic relationship with China. We need to use our influence to help them get to a better place, but I take the hon. Gentleman’s point.
[Official Report, 29 June 2023, Vol. 735, c. 420.]
Letter of correction from the Secretary of State for Business and Trade, the right hon. Member for Saffron Walden (Kemi Badenoch):
An error has been identified in my response to the hon. Member for Huddersfield (Mr Sheerman).
The correct response should have been:
Kemi Badenoch
I do not think we need an audit. China is our fourth largest trading partner and seventh largest export market, and we are aware of the economic challenge that it poses across the world. We work with countries across the world, but we have a pragmatic relationship with China. We need to use our influence to help them get to a better place, but I take the hon. Gentleman’s point.
Departmental Update
Kemi Badenoch Excerpts(1 year, 5 months ago)
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The Secretary of State for Business and Trade (Kemi Badenoch)
I am pleased to provide the House with the following updates from the Department for Business and Trade today.
United Kingdom Internal Market Act 2020 (Services Exclusions) Regulations 2023 in accordance with section 18(10) of the United Kingdom Internal Market Act 2020
This statement is made in accordance with section 18(10)[1] of the United Kingdom Internal Market Act 2020 (“the UKIM Act”). The United Kingdom Internal Market Act 2020 (Services Exclusions) Regulations 2023 (“the regulations”) amend the list of services contained in schedule 2 to that Act to which the market access principles in part 2 of the UKIM Act do not apply.
The changes to the services exclusions under schedule 2 are being made following a public consultation held in February to May 2021. In line with section 18(8) of the UKIM Act, consent of the Scottish Ministers, the Welsh Ministers, and the Department for the Economy in Northern Ireland to the making of the regulations has been sought. If that consent is not given within one month of the request, the regulations may be made without that consent, in accordance with section 18(9).
One month has passed and I have not received consent from all the devolved Administrations, although Welsh Ministers have consented to the making of these regulations. These regulations are important to ensuring that the scope of application of the market access principles in part 2 of the UKIM Act better reflects how services are currently regulated across the UK. I therefore intend to proceed with making the United Kingdom Internal Market Act 2020 (Services Exclusions) Regulations 2023. My officials have worked closely with their counterparts in the devolved Administrations throughout this process.
[1] Regulation 18(10) states that “if regulations are made in reliance on subsection (9), the Secretary of State must publish a statement explaining why the Secretary of State decided to make the regulations without the consent of the authority or authorities concerned.”
Canada trade negotiations update
The sixth round of UK-Canada free trade agreement (FTA) negotiations began on 26 June and concluded on 30 June. Similar to previous rounds, this was conducted in a hybrid fashion with some UK officials travelling to Ottawa for negotiations and others attending virtually.
Technical discussions were held across 26 policy areas over 78 separate sessions. They included detailed discussions on treaty text.
Both parties built on the momentum from agreeing in principle UK accession to the comprehensive and progressive agreement for trans-Pacific partnership in March 2023. The negotiations continue to reflect our shared ambition to secure progressive deal which strengthens our existing trading relationship, already worth over £24.8 billion in the year to Q3 2022.
The Government remain clear that any deal we sign will be in the best interests of the British people and the United Kingdom economy. We will not compromise on our high environmental, public health, animal welfare and food standards, and we will maintain our right to regulate in the public interest. We are also clear that during these negotiations, the national health service and the services it provides are not on the table.
The Government will continue to keep Parliament updated as these negotiations progress.
Contingencies Fund advance
The Economic Crime and Corporate Transparency Bill will reform the operations of Companies House by setting out new objectives for the Registrar of Companies, including additional powers to query and amend the register where it is suspected that there is fraud or error, as well as scope to proactively share intelligence on criminal activity across Government to combat economic crime. These provisions will help Companies House do more to tackle criminals, terrorists and corruption, strengthening the UK’s reputation as a place where legitimate business can thrive, whilst driving dirty money out of the country.
The legislation enables further investigation and enforcement activity to be undertaken against corporate entities. In readiness for this responsibility we propose to ensure we have the right staff and systems in place to deliver the registrar’s new powers.
Parliamentary approval for additional resource of £1,100,000 and capital of £1,781,000 for this new service will be sought in a supplementary estimate for the Department for Business and Trade. Pending that approval, urgent expenditure estimated at £2,881,000 will be met by repayable cash advances from the Contingencies Fund.
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Departmental Update
Kemi Badenoch Excerpts(1 year, 5 months ago)
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The Secretary of State for Business and Trade (Kemi Badenoch)
I am pleased to provide the House with the following updates from the Department for Business and Trade today.
Tata Group gigafactory investment
I am delighted that Tata Group, the owner of JLR, has today announced that it has chosen the UK as the site of its first gigafactory outside of India, creating thousands of jobs. This is one of the largest ever investments in the UK’s automotive sector and has been secured following in-depth engagement across Government and Tata over the last two years.
The multi-billion pound investment represents an historic moment for the UK’s growing electric vehicles industry and the new gigafactory will supply all JLR’s future battery electric models, including the Range Rover, Defender, Discovery and Jaguar brands, with the potential to also supply other car manufacturers.
The new gigafactory will create up to 4,000 highly skilled direct jobs and thousands of further jobs in the wider supply chain for battery materials and critical raw minerals, helping to grow the economy and moving the UK forward in the race to net zero.
The Government have engaged closely with Tata to demonstrate our commitment and support for this investment. The decision to build in the UK is a testament to this strong relationship and the new gigafactory secures a great future for our automotive sector, while supporting Tata’s ambitions to be a leader in zero emission vehicles.
The new gigafactory will be one of the largest in Europe and will be crucial to boosting the UK’s battery manufacturing capacity needed to support the electric vehicle industry in the long term. Initial production of 40GWh will mean it will provide almost half of the battery production that the Faraday Institution estimates the UK will need by 2030.
The location of the facility will be confirmed by Tata following the finalisation of due diligence, with battery production expected to start in 2026. When built, it will become one of the largest buildings in the UK at the size of almost 65 football pitches.
The automotive industry is a vital part of the UK economy, and it is integral to delivering on levelling up, net zero and helping to drive economic growth. The Government are committed to making the UK one of the best places in the world for automotive investment, evidenced by the automotive transformation fund, the British industry supercharger scheme and our strong programme of support for research and development.
We are working alongside industry to unlock private investment in our EV supply chain and have long-standing and comprehensive programmes of support for the automotive sector including the automotive transformation fund, the Advanced Propulsion Centre and the Faraday battery challenge. The automotive transformation fund was instrumental in securing this investment and supports the development of a high-value end-to-end electrified automotive supply chain and is enabling a UK-made transition to net zero.
The strength of the UK’s automotive R&D is also evidenced by the welcome decision by Tata that it will also create two R&D innovation hubs, one in India and one in the UK. Supported by leading academia, these hubs will focus on next-generation battery cell technologies.
The UK has a proud automotive heritage. Today’s investment is a major vote of confidence in its bright future too. I look forward to continuing to work closely with the automotive sector to ensure that we take the necessary steps to put the UK at the forefront in the transition to zero emission vehicles.
Statutory review of the Groceries Code Adjudicator
I am today publishing and laying before Parliament the report on the third statutory review of the Groceries Code Adjudicator (the GCA).
The GCA was established by the Groceries Code Adjudicator Act 2013 (the Act). Its role is to monitor and enforce the Groceries Supply Code of Practice (the code), which the UK’s designated large grocery retailers must comply with when dealing with their direct suppliers.
Section 15 of the Act requires the Government to review periodically the performance of the GCA. The first review covered the period from the creation of the GCA, in June 2013, to 31 March 2016 and the second review covered the period from 1 April 2016 to 31 March 2019.
The statutory review is not a review of the code or of the remit of the GCA. The code is a competition measure owned by the Competition and Markets Authority (CMA) as the UK’s independent competition authority.
The third review (the review) considered the effectiveness of the GCA in enforcing the code over the period 1 April 2019 to 31 March 2022. A public consultation was held from 19 July to 11 October 2022 to meet the requirements of the Act for the Secretary of State to consult those with an interest in the code. Responses to the consultation and evidence from the GCA annual supplier survey and annual reports enabled the Secretary of State to make an assessment of the performance of the GCA against the measures set out in the Act. These measures were explained in the terms of reference which are included in the report on the review and in the consultation document which was placed in the Libraries of both Houses of Parliament on 19 July 2022.
The review has found the GCA to be a highly effective regulator that made good use of its powers to take a balanced and collaborative approach that usually resolved issues before the need for an arbitration or investigation and was valued throughout the sector.
The review also found no evidence to support the need to change the permitted maximum financial penalty the adjudicator can impose following an investigation into non-compliance. It also concluded that the information which the GCA may consider when deciding whether to launch a formal investigation into non-compliance should not be restricted.
The Government took the decision not to transfer the GCA functions to the CMA or another public body but that we should explore with the GCA and the CMA ways to work together to realise efficiencies around staffing and expertise. The review also concluded that there is not any evidence to suggest that the GCA should be abolished.
The report on the third statutory review of the GCA has today been placed in the Libraries of both Houses of Parliament.
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Comprehensive and Progressive Agreement for Trans-Pacific Partnership: Accession Protocol
Kemi Badenoch Excerpts(1 year, 5 months ago)
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The Secretary of State for Business and Trade (Kemi Badenoch)
Introduction
The UK officially signed its accession protocol to the comprehensive and progressive agreement for trans-pacific partnership (CPTPP) on 16 July 2023. This trade agreement contains some of the world’s largest and most dynamic economies. Our membership will take the agreement from 11 to 12 members and represents the first expansion of this high-standards trade agreement.
The agreement will act as a gateway to the wider Indo- Pacific and Americas region, bringing new opportunities for British businesses, supporting jobs across the whole UK and shaping the future of international trading rules.
The Indo-Pacific region will account for the majority of global growth in coming decades and be home to around half the world’s middle-class consumers. On the UK joining, the CPTPP membership will account for around £12 trillion in GDP, a number which will grow as new members join. Economies including Costa Rica, Uruguay and Ecuador have formally applied, and the Republic of Korea, Thailand and the Philippines have expressed an interest in doing so. As the first acceding country, we have placed ourselves in an ideal position to benefit from future expansion of the agreement.
Geopolitical benefits
Accession to the agreement will send a powerful signal that the UK is using our post-Brexit freedoms to boost the economy. It will secure our place as the second largest economy in a trade grouping dedicated to free and rules-based trade while taking a larger role in setting standards for the global economy.
Becoming a member will see us deepening our multilateral relations and strengthening our trading links in the Indo-Pacific region. We will work closely with our partners to develop the agreement, creating further benefits for all its members.
As CPTPP grows, the UK will help shape its development to fight unfair and coercive trading practices that threaten the future of international trade. British businesses will benefit from enhanced access to more markets while trading under fair rules that allow them to compete and thrive on the global stage.
Our status as an independent trading nation is putting the UK in an enviable position. Membership of this agreement will be a welcome addition to our bilateral free trade agreements with over 70 countries.
Gains for businesses and consumers
In an historic first, joining CPTPP will mean that the UK and Malaysia are in a free trade agreement together for the first time, giving British business better access to a market worth £330 billion. Manufacturers of key UK exports will be able to make the most of tariff reductions to this thriving market. Tariffs of around 80% on whisky will be eliminated within 10 years and tariffs of 30% on cars will be eliminated within seven years.
In addition, over 99% of current UK goods exports to economies in the agreement will be eligible for zero tariff trade. The agreement’s provisions will also help facilitate trade by ensuring that customs procedures of CPTPP parties are efficient, consistent, transparent and predictable.
Beyond goods exports, the UK’s world-leading services firms will benefit from modern rules which ensure non-discriminatory treatment and greater levels of transparency. In key sectors, UK companies will not be required to establish or maintain a representative office in a CPTPP territory. This will make it easier for them to provide services to consumers in other CPTPP countries.
The deal we have struck will also open up new opportunities in the Government procurement markets of CPTPP members, including in Malaysia, Singapore and Japan.
Business travel will be easier under the agreement. Britons travelling to CPTPP members for work purposes will enjoy greater certainty on trips for short-term work meetings. Professionals going to Peru and Vietnam for short-term business will be able to stay for six months. That is double the amount of time for previous agreements.
UK consumers are also set to benefit from tariff reductions on imports. These tariff reductions could lead to cheaper prices, better choice and higher quality. Products such as fruit juices from Chile and Peru, and Mexican honey and chocolate, to name but a few, could all cost less.
Defending UK interests in negotiations
We have ensured that joining will not compromise our high animal and plant health, food safety or animal welfare standards. We have also maintained our right to regulate in the public interest, including in areas such as the environment and labour standards. Furthermore, we ensured that the NHS was kept off the table throughout the course of discussions, as in all of our free trade agreement negotiations. We have also ensured that UK producers will be protected. We have reduced import tariffs in proportion to the market access we have received and kept safeguards where necessary. Market access increases will be staged over time for certain products, ensuring that farmers have time to adjust to new trade flows. Permanent limits on tariff-free volumes have been agreed on some of the most sensitive products that can be exported to the UK. This includes on beef and pork.
Conclusion and next steps
Following signature, the Government will now take the necessary steps to ratify the agreement. The Secretary of State will write to the Trade and Agriculture Commission to commission its advice on the agreement.
The Government have now published the accession protocol and related market access schedules, as well as relevant side letters, an impact assessment and a draft explanatory memorandum. With the publication of the accession protocol, the agreement text has now been presented to Parliament, but the Government will not commence the pre-ratification scrutiny process under the Constitutional Reform and Governance Act 2010 for a period of at least three months. This will ensure there is appropriate time for the relevant Select Committees to consider the agreement in advance. Legislation necessary to implement the agreement will be brought forward, and duly scrutinised by Parliament, when parliamentary time allows.
Joining CPTPP marks a key step in the development of the UK’s independent trade policy. It will deepen our relations with a strategically vital region and offer exciting new opportunities for British businesses and consumers.
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Oral Answers to Questions
Kemi Badenoch Excerpts(1 year, 5 months ago)
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Patrick Grady (Glasgow North) (SNP)
The Secretary of State for Business and Trade (Kemi Badenoch)
I regularly discuss with my Cabinet colleagues promoting trade in Scotland as well as the United Kingdom as a whole. Just this week I chaired a meeting of the Board of Trade that focused on trade promotion across the nations, and held discussions, alongside the Secretary of State for Scotland, on ensuring that the Department’s work delivers for the whole UK.
Patrick Grady
That sounds just wonderful, but I would like to know how the Secretary of State thinks ending freedom of movement has helped to promote Scottish trade and culture overseas. Does she think it is a good thing that musicians in Glasgow North now find it much more difficult to tour in Europe—one of the most important markets for traditional Scottish music nowadays —and that their merchandise can no longer be manufactured in Scotland but must be manufactured in the countries to which they are travelling because the customs costs have become so prohibitive?
Kemi Badenoch
I welcome the hon. Gentleman’s early-morning snarkiness as he asks about what we are doing for Scotland. We understand that there are issues that people have across borders, and my Department works closely with musicians and with all those who trade across borders to see what we can do to resolve those issues. If there are specific cases in the hon. Gentleman’s constituency, the Department is well placed to help his constituents with the issues he has described.
Nick Thomas-Symonds (Torfaen) (Lab)
Scotch whisky is an iconic Scottish export, and it is also hugely important strategically to the whole UK. Had Ministers completed the free trade agreement with India by Diwali last year, as was promised, the 150% tariff that producers of Scotch face when exporting to India could have been eliminated. Given that the 10th round of talks has recently ended, with an 11th planned soon, can the Secretary of State tell us whether the free trade agreement will be completed by Diwali this year?
Kemi Badenoch
I have said repeatedly that it is about the deal and not the day. Every single trade agreement that we negotiate is bespoke to the specific country and tailored to its economy, to ensure that it benefits both the UK and the counterpart country. I am happy to say that the Scotch Whisky Association is very pleased with what it has been hearing about negotiations from its Indian counterparts, and we are working hard to make sure that the industry is successful.
Richard Thomson (Gordon) (SNP)
The Scottish seafood industry has been hit with an estimated 50% increase in the cost of packaging owing to the requirement—thanks to the form of Brexit chosen by this Government—for export health certificates with every consignment. Does the Secretary of State accept that the form of Brexit that was chosen, and in particular the failure to align in respect of sanitary and phytosanitary matters, is adding costs to Scotland’s iconic seafood sector at a time when it can barely afford to absorb such costs?
Kemi Badenoch
No, I do not accept that at all. If anything, what is increasing the costs is what the Scottish Government have been doing in relation to the deposit return scheme. While complaining about our divergence between here and the EU, they are trying to split the UK single market, and we are not going to let them do that.
Stephen Kinnock (Aberavon) (Lab)
The Secretary of State for Business and Trade (Kemi Badenoch)
The CPTPP will be benefiting every nation and region of our country. In particular, UK firms will enjoy enhanced access to Malaysia for the first time, including a reduction on tariffs on whisky sales to Malaysia of 80% within 10 years, improving prospects for trade and opening up opportunities in an economy worth £330 billion.
Richard Graham
We should all congratulate the Secretary of State and her team on concluding the CPTPP negotiations, and it should be ratified any time now in New Zealand. Of course the most important new element of the trans-Pacific partnership is this first ever free trade agreement with our long-term friend and ally, Malaysia. Whether in cars, cyber, chocolates, vaccines or legal and other services, the opportunities for British exporters are considerable and, of course, the dividends from our investment there, such as the new Smith & Nephew plant, will also help our balance of payments. Does my right hon. Friend therefore agree that there is a great opportunity for us and Malaysia to work together on spreading the word, through our regional offices, the UK-ASEAN Business Council and every other means possible, to make sure that businesses in both countries are absolutely aware of the opportunities that the deal offers?
Kemi Badenoch
I thank my hon. Friend for his question. He will be pleased to know that Ministers in the Department met their counterpart, the Malaysian export Minister, this very week. A lot is going on between our two countries. The Department works closely with the UK-ASEAN Business Council, and our first bilateral joint economic trade committee with Malaysia is expected later this year. It will help promote the bilateral trade and investment and economic co-operation that he rightly champions as the trade envoy to that country. He will know that I will be signing the CPTPP agreement next month in New Zealand.
Ruth Cadbury (Brentford and Isleworth) (Lab)
Clearly, it is vital that British businesses that want to export can access the benefits of trade deals. However, the Government admitted to me in a written answer that they have not modelled the benefits of the CPTPP for our hard-pressed manufacturing businesses, so will the Minister tell me how many UK manufacturers will benefit from the rules of origin requirements under the CPTPP?
Kemi Badenoch
The hon. Lady will know that we do not count the number of companies specifically in our modelling. The modelling happens at a very high level—it is macro-level modelling. What she should know is that rules of origin will benefit people who export to that region, particularly auto manufacturers, who are very pleased about the deal.
Alan Brown (Kilmarnock and Loudoun) (SNP)
Ian Levy (Blyth Valley) (Con)
The Secretary of State for Business and Trade (Kemi Badenoch)
I recently visited Williams Advanced Engineering, an excellent example of British engineers working at the cutting edge of battery technology, including on projects benefiting from the Faraday battery challenge. The Government’s £541 million Faraday battery challenge has supported more than 140 organisations working across the UK, attracting over £400 million in co-investment, and enabled 500 researchers across more than 25 universities to improve and develop battery technologies.
Ian Levy
We know that the United Kingdom needs more battery production facilities in order to achieve net zero and build an automotive industry that is fit for the future. On the Blyth estuary, we have the best site in the UK for high-volume battery manufacturing, with green power supplies, a deep-water port, and a talented and willing workforce. Does the Minister agree that it is vital that this Government grasp the opportunity and do all that they can to bring much-needed new green jobs to south-east Northumberland?
Kemi Badenoch
Yes, of course, I do agree with my hon. Friend. I know that Blyth has an excellent location for a gigafactory. I just want him to know, as he represents that constituency, that we continue to work closely with the local authority to secure the best outcome for that site.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
Will the Secretary of State be slightly cautious about a battery-driven future? I recently visited JCB, which has developed a hydrogen combustion engine that is working well with heavy vehicles. Hydrogen is moving very fast indeed. Will she encourage the production of hydrogen and visit JCB just to see the really innovative work that it is doing? Will she stop the Transport Minister in the House of Lords dissing hydrogen as ineffective?
Kemi Badenoch
Far be it from me to stop our noble Friends in the other place from doing what they think is right. None the less, I do agree with the hon. Gentleman. My view is, let a thousand flowers bloom. Hydrogen is one of the viable ways of helping us to get to net zero, and the Government are looking at all possible options to make sure that we support the cutting-edge technology that will get us to our green transition.
Mr Philip Hollobone (Kettering) (Con)
The Secretary of State for Business and Trade (Kemi Badenoch)
We have secured trade deals with 70 countries, including the EU, since 2019—partners that accounted for £1.1 trillion of UK bilateral trade in 2022. As I mentioned earlier, in March we concluded negotiations with the comprehensive and progressive agreement for trans-Pacific partnership, the UK’s biggest trade deal since Brexit. In addition, we have signed five new comprehensive trade deals tailored to the UK—those with Japan, Australia and New Zealand; a groundbreaking digital economy agreement with Singapore, and a digital trade agreement with Ukraine—as well as the programme of 63 non-EU continuity agreements.
Dr Evans
The post-Brexit developing countries trading scheme, which was alluded to in earlier questions, covers 65 developing countries and 3.3 billion people. Will my right hon. Friend spell out exactly what the benefits are for businesses and consumers in Hinckley and Bosworth, and the UK, and can she confirm that that is a more generous scheme than the EU scheme that we left?
Kemi Badenoch
I can confirm that our offer is now more generous than what the EU offers in terms of market access—for example, we allow the least developed countries to source raw materials from other markets and still import goods tariff-free. Overall, my hon. Friend’s constituents will be pleased to know that the trade preferences in the developing countries trading scheme reduce import costs by more than £770 million a year. That is key because it helps to reduce prices and increase choice for UK businesses and consumers, and to tackle inflation, particularly for the highest-sold items such as clothes and food.
Jeff Smith (Manchester, Withington) (Lab)
Mr Tanmanjeet Singh Dhesi (Slough) (Lab)
The Secretary of State for Business and Trade (Kemi Badenoch)
As part of the Atlantic declaration, we launched negotiations on a critical minerals agreement with the US, which will secure market access for a strategically important sector of the UK economy. My Department has secured tariff-free imports of UK steel and aluminium into the US, supporting 80,000 jobs in UK supply chains. We have removed the 25-year US ban on UK lamb, opening the market to 300 million US customers, and have signed five trade and economic development memorandums of understanding with individual US states, which imported £4.6 billion-worth of goods from the UK in 2022, most recently last week with Utah.
Mr Dhesi
In their 2019 election manifesto, the Conservatives declared to the British people:
“Our goals for British trade are… ambitious. We aim to have 80 per cent of UK trade covered by free trade agreements within the next three years, starting with the USA”.
However, there has been abject failure, with a free trade agreement nowhere in sight, and instead of coming clean on their incompetence, laughingly, Tories are now lining up to blame the Biden Administration for the lack of progress. Will the Secretary of State concede that the Government’s failure to negotiate an FTA with the USA has potentially locked out British businesses from vital new markets created by the US Inflation Reduction Act?
Kemi Badenoch
I am afraid that is not the case at all. If the hon. Gentleman looks at the detail of the Atlantic declaration, he will see that we are co-operating very closely with the US. On his point about our 2019 manifesto, we did say that that was what we were going to do, because the Administration at the time were willing. This Administration are not. It has nothing to do with the UK. They are not negotiating any FTAs with any countries. That is what the US trade representative has said to me in many meetings, and they have said that to EU counterparts.
If what the hon. Gentleman suggests is true, he is basically saying that every Government should be bound by their predecessor, in which case, should anything happen, he is saying that he agrees with everything this Government are doing and nothing should change. What we have negotiated with the Atlantic declaration is a success, and he should be praising this Government for achieving something so monumental.
Sir Conor Burns (Bournemouth West) (Con)
I draw the House’s attention to my interest as the Prime Minister’s trade envoy to the United States for regional trade and investment. Our programme of MOUs with states in the United States is a major driver of improving market access and trade between the UK and the US. As I embark on a visit to Florida to advance our objectives there, will my right hon. Friend use this opportunity to reaffirm not just that we want to enter into multiple MOUs with states in the United States, but that we want British businesses to step up to the opportunities they create and we want to create the mechanisms to allow business-to-business delivery?
Kemi Badenoch
Absolutely, I can affirm that. My right hon. Friend makes a very good point about the MOUs. The Opposition would like to present a false story about us not getting along with our US counterparts. The fact that so many states, knowing that their Federal Government are not negotiating an FTA, have decided to step up and negotiate MOUs with us shows that this country is still attracting a large amount of investment and co-operation from our international partners. We want British businesses to be able to take part in that, and we are doing everything we can to help them use the MOUs.
Nadia Whittome (Nottingham East) (Lab)
The Secretary of State for Business and Trade (Kemi Badenoch)
Last week, I was pleased to lead discussions with international partners and businesses at the Ukraine recovery conference and welcomed the Prime Minister of Ukraine and First Deputy Prime Minister to Mansion House, alongside over 150 companies, showcasing how UK companies in our private sector can use their ingenuity and expertise to support the reconstruction of Ukraine.
I was very proud to announce that the UK Government have backed a £26.3 million equivalent loan, which is an unprecedented transaction; the Business Bridge Ukraine platform, matching Ukrainian businesses with complementary partners; the UK-Ukraine tech bridge, to bring together UK and Ukrainian tech businesses to harness opportunities for innovation and collaboration; and the London conference framework on war risk insurance.
Nadia Whittome
Recent research by a former chief competition economist to the European Commission—shared with me by Unite the union—estimates that average UK mobile phone bills could rise by up to £300 a year in the case of a merger between Three and Vodafone. Is the Secretary of State aware of that risk, and will her Department be taking any action to prevent such a merger, which would be disastrous for competition in the mobile network operator sector?
Kemi Badenoch
The hon. Lady will know that we have an independent regulator, the Competition and Markets Authority, which would look at cases such as the one she raises and make a call on whether it would be harmful or beneficial to the UK economy. I trust the CMA—it has been doing a good job so far—and I look forward to seeing its read-outs on forthcoming mergers and proposals by large businesses in our country.
Mr Laurence Robertson (Tewkesbury) (Con)
Richard Thomson (Gordon) (SNP)
This week, the European Council adopted the EU’s free trade agreement with New Zealand, which includes dedicated sustainable food systems chapters, a dedicated trade and gender equality article, and a provision on trade and fossil fuel subsidies reforms. Can the Secretary of State explain why our trade deal with New Zealand, if it is so good, fell so far short on those issues?
Kemi Badenoch
I think the hon. Gentleman will find that, actually, the trade deal we negotiated with New Zealand makes things cheaper for our consumers, not more expensive, it is less protectionist and it is helping to improve relations between us and New Zealand. I disagree with his assessment of the EU-New Zealand free trade agreement: we looked at it and were actually quite pleased with what we got.
Siobhan Baillie (Stroud) (Con)
I am concerned that the UK is being left behind on hydrogen internal combustion engines. The EU and the USA are now recognising hydrogen combustion engines as zero emission, but the UK is refusing, which means that the automotive transformation fund for industrialising the technology is not available. I am working with brilliant companies such as BorgWarner in Stonehouse and the Renewable Hydrogen Alliance to raise this issue. I have spoken to the Secretary of State for Transport and I am raising it with the Prime Minister; I hope that my right hon. Friend the Secretary of State for Business and Trade will use her brilliant brains on this matter too.
Kemi Badenoch
The hon. Gentleman raises a very good point. He is right that we need to make sure there is resilience across the sector, and I think our regulators are best placed to do that. They are carrying out a number of reviews at the moment, and I and colleagues across Government are working closely with them.
Patrick Grady (Glasgow North) (SNP)
The Secretary of State earlier told my hon. Friend the Member for Gordon (Richard Thomson) that she did not accept that Brexit was having a negative impact on the Scottish seafood industry. It is a bit like saying she does not accept that the earth is round—although, admittedly, sometimes people on her Back Benches need to be persuaded of that. If she does not think that Brexit is having a negative impact on the Scottish seafood industry, does she think it has been positive, or does she think there has not been any change at all?
Kemi Badenoch
The hon. Gentleman is entitled to his opinion, as I am entitled to mine. He has done absolutely nothing except try to re-litigate Brexit over and over again. The fact is that we are not going back into the EU. We are using our independent trade policy, negotiating with countries around the world and delivering more for the UK as well as for Scotland. Scottish businesses are happy with what we are doing, and in particular they are happy that the grown-ups in Westminster have stopped them making the catastrophic decisions that are destroying the internal market.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
Is the Secretary of State aware of just how much influence the Chinese Government and Chinese companies have on our economy? Is she aware that many times I have asked for an audit of how big that influence is? Does she share the concern of many businesses in our country that the Chinese Government are using subterfuge and espionage to further their interests?
Kemi Badenoch
I do not think we need an audit. China is our fourth largest export market, and we are aware of the economic challenge that it poses across the world. We work with countries across the world, but we have a pragmatic relationship with China. We need to use our influence to help them get to a better place, but I take the hon. Gentleman’s point.
Tim Farron (Westmorland and Lonsdale) (LD)
How does it help UK Steel to decarbonise, or help the UK to reclaim its position of global leadership in reducing climate emissions, to support the opening of a sure-to-be-doomed new coalmine in west Cumbria?
Alan Brown (Kilmarnock and Loudoun) (SNP)
Going back to Brexit, can the Secretary of State name one Scottish sheep farmer who is happy with the Brexit deal, or any seafood producers and exporters that she spoke to who are happy with Brexit? Can she name any Scottish farming sectors that are happy with Brexit?
Kemi Badenoch
It is not my job to memorise names of Scottish businesses, and just as I said in response to a previous question, SNP Members are not serious. Perhaps if they stood up and actually represented their businesses in trying to make use of all the opportunities we have, they would be in a better place.
Jim Shannon (Strangford) (DUP)
When it comes to increasing trade with African countries, what steps are being taken to ensure that increased trade is carried out with companies that take human rights seriously and are ethically aware in the treatment of their workers?
UK-Switzerland Agreement on Recognition of Professional Qualifications
Kemi Badenoch Excerpts(1 year, 6 months ago)
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The Secretary of State for Business and Trade (Kemi Badenoch)
On 14 June 2023 the UK and Switzerland signed the UK-Switzerland agreement on the recognition of professional qualifications (RPQ).
The UK and Switzerland are two global leaders in services trade with deep links between our economies. In 2022, Switzerland was the UK’s third largest partner for services trade, with £23.7 billion in total services trade (imports and exports).
Interim arrangements on RPQ were concluded with Switzerland ahead of EU exit. The “UK- Switzerland citizens’ rights agreement” among other things rolled over the existing (EU-based) processes for recognising, qualifications until 2024.
Given the strength of both our services economies, and the importance of the RPQ in facilitating trade, it is vital that we establish longer-term arrangements for such recognition to replace these interim arrangements when they expire. Professional services businesses and stakeholders have also made clear the value that they place on smooth and transparent processes for RPQ with Switzerland.
This agreement provides such arrangements, establishing long-term:
Easier access for UK qualified professionals who want to practise in Switzerland, requiring regulators to provide a route to recognition.
Smoother processes for assessing applications—requiring reasonable decision times, reasonable application fees, and clear and transparent guidance on requirements.
Bespoke access for the world-leading UK legal profession, an important export market adding £29 billion gross value to the economy annually.
This agreement will provide certainty for UK and Swiss professionals regarding the arrangements for recognition of their professional qualifications. It will bring tangible, long-term benefits to the UK, simplifying processes for UK professional services businesses that trade in Switzerland.
The agreement also safeguards regulators’ autonomy to set and maintain professional standards, to assess against these, and to decide who is fit to practise the profession.
Securing this agreement is an important step in establishing a new long-term trading relationship with Switzerland, alongside the UK-Swiss FTA negotiations which I launched with my Swiss counterpart last month.
The ambition is for this agreement to enter into force on 1 January 2025, following the completion of domestic processes by both parties.
[HCWS850]
Oral Answers to Questions
Kemi Badenoch Excerpts(1 year, 7 months ago)
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Layla Moran (Oxford West and Abingdon) (LD)
The Secretary of State for Business and Trade (Kemi Badenoch)
Non-disclosure agreements can be used legitimately by employers—for example, to protect commercially sensitive information. The Government understand concerns about the use of NDAs to silence victims of sexual misconduct. We have legislated to prevent higher education providers using NDAs in cases of sexual abuse, harassment or misconduct and other forms of bullying or harassment.
Layla Moran
Imagine, Mr Speaker, that you are a victim of bullying, misconduct or sexual harassment at work, and your employer pushes you to sign a gagging clause preventing you from publicly disclosing what happened to you; this sits over you in perpetuity, reminding you of the trauma you experienced. The campaign group Can’t Buy My Silence will soon be launching a business pledge to commit to ending this practice in businesses for good. Will the Secretary of State consider meeting me to discuss this forthcoming pledge, and does she back a ban on the use of NDAs in these specific cases?
Kemi Badenoch
I am aware that the hon. Member had a private Member’s Bill on this very issue. The Government are supportive of preventing harassment in the workplace, and we supported the Worker Protection (Amendment of Equality Act 2010) Bill. We believe that NDAs have a place, but she has raised specific circumstances where they are inappropriate, so I am happy to discuss with her what we can do to stop this problem from continuing.
Nadhim Zahawi (Stratford-on-Avon) (Con)
Holly Mumby-Croft (Scunthorpe) (Con)
The Secretary of State for Business and Trade (Kemi Badenoch)
We are actively engaging with the steel industry to secure a positive and sustainable future. Alongside that, my Department announced the British Industry Supercharger in February—a decisive and necessary intervention that will help to reduce energy costs for energy intensive industries such as steel.
Jessica Morden
As the Minister knows, the key issues facing the steel industry are energy prices—we are still paying much more than our European competitors—and decarbonisation. There are 23 clean steel projects in Europe, but none here. In reply the Secretary of State will quote support that is historic, too little, or too late. Labour Members have a plan for steel, where is the Government’s?
Kemi Badenoch
I visited the Port Talbot steelworks, and no one there is talking about Labour’s plan; they are talking about what the Government have been doing, and they have been grateful for the support we have provided. It is misleading to call that “historic” when we have been showing continued support for the steel sector. The Government continue to provide that significant financial support, and the steel industry has been able to bid into Government funds worth more than £1 billion to support energy efficiency and decarbonisation.
Holly Mumby-Croft
I thank the Secretary of State for her visit to Scunthorpe steelworks. She knows well the challenges that the steel industry is facing. While the British Industry Supercharger was a welcome announcement that I hope will go a long way to putting us on a fairer footing, I am concerned that some of that support might not be fully in place until 2025. Given current concerns, can she do anything to speed that up?
Kemi Badenoch
I thank my hon. Friend for her question and for accompanying me on my visit to British Steel last week. We are moving quickly to deliver the supercharger policy. It will reduce energy costs to energy intensive industries, including steel, by around £20 per megawatt hour. She mentioned speed, and we will consult on the capacity market exemption shortly. We intend to bring forward secondary legislation on all three measures around renewable energy obligations and capacity market costs. I will do everything I can to ensure that businesses get the support they need as quickly as they can.
Marco Longhi (Dudley North) (Con)
The Secretary of State for Business and Trade (Kemi Badenoch)
We have secured a deal that offers brilliant new opportunities for British businesses by getting an agreement in principle to the comprehensive and progressive agreement for trans-Pacific partnership. Our exporters will have greater opportunities to sell their excellent products to some of the world’s biggest markets in the Americas and Asia-Pacific, with the bloc set to account for 15% of global GDP once the UK joins. It will be easier and less expensive to trade physical products between our countries, and more than 99% of current UK goods exports to CPTPP will be eligible for tariff-free trade.
Marco Longhi
I congratulate the Secretary of State on the CPTPP agreement, which, among other things, will be a wonderful vehicle to foster better relationships within the Indo-Pacific, as well as being a key region for UK trade. Another key area for trade for the United Kingdom is Latin America, and as the Prime Minister’s trade envoy to Brazil, and having lived and worked there for five years, I have seen first hand the wonderful opportunities available there. Will the Secretary of State update the House on what her Department is doing to build on that trading relationship with Brazil?
Kemi Badenoch
I thank my hon. Friend for his outstanding commitment to improving our trade relationship with Brazil in his work as trade envoy, and I wish him well on his upcoming trip to the country. Our bilateral trade with Brazil increased to £7.7 billion in the 12 months ending December 2022, and the signing of the UK-Brazil double taxation agreement in November represents a significant step in enhancing trade across all sectors. There is much we can do with Brazil—I intend to visit the country, hopefully later this year—especially around critical minerals. I look forward to working with the Brazilian Government in due course.
Dan Carden (Liverpool, Walton) (Lab)
As the UK crafts deeper and more comprehensive trade relations across Latin America, it is important to capture not just economic benefits but cultural benefits. In fact, student and language exchanges are a vital precursor to trade as they enable young people in both the UK and Latin America to have the mobility and skills to create those relationships and build businesses. Today, a major barrier preventing UK university students from studying in Latin America is the lack of mutual recognition agreements on qualifications. What assessment has the Secretary of State made of the merits of integrating mutual recognition of higher education qualifications into trade negotiations?
Kemi Badenoch
I thank the hon. Gentleman for his question, for the work that he does as the chair of the all-party parliamentary group on Mexico and for his interest in the region. We do look at mutual recognition for qualifications in trade deals, but most of the time they tend to be in separate agreements. Because of the nature of how free trade agreements are structured, we try to ensure that they are focused specifically on trade. We have an upcoming upgrade to our trade deal with Mexico, as we do with several other countries. If he has specific areas that he would like us to highlight, now is the time to tell us which qualifications in particular we should focus on.
Gareth Thomas (Harrow West) (Lab/Co-op)
While Labour Members recognise the diplomatic and security benefits of closer ties with the Indo-Pacific, Ministers’ negotiating skills are clearly not improved if Britain’s joining the CPTPP will lift economic growth here by only 0.08%. Will the Secretary of State tell the House why, in the accession talks, she was not able to resist giving some overseas corporate giants the right to access secret courts that could override the will of the British people, bypass Parliament and cost British taxpayers significant sums of money?
Kemi Badenoch
I believe that the hon. Gentleman is referring to investor dispute settlement mechanisms. We have used them in this country for many years, and that has protected British companies. He is wrong about the CPTPP not bringing much economic growth to the country—it will bring billions. We have repeatedly explained that the statistic he quoted is being misused. It does not take into account the growth of the bloc or the future GDP growth of those countries. We should be congratulating all our officials for the hard work they did in negotiating the agreements rather than criticising them.
Andrew Selous (South West Bedfordshire) (Con)
Peter Aldous (Waveney) (Con)
The Secretary of State for Business and Trade (Kemi Badenoch)
As Secretary of State for Business and Trade, my priority is to support UK companies to thrive at home and abroad, which is why this week I launched negotiations for an enhanced UK-Swiss free trade agreement alongside my counterpart, Federal Councillor Guy Parmelin. Trade between us is worth almost £53 billion and, as two service economies, a modernised agreement presents huge opportunities for the UK and Switzerland. I met representatives from SIX Swiss Exchange, the backbone of Swiss financial services, and several innovative start-ups at the fintech accelerator Tenity.
Peter Aldous
Fish and chip shops have been part of the fabric of British life for generations and should be the cornerstone of a revived domestic fishing industry. However, shops in the Lowestoft and Waveney area continue to face an ongoing triple whammy of high energy costs, high fish prices and the high cost of cooking oil. Will my right hon. Friend work proactively with the sector to agree a strategy that ensures the survival and subsequent flourishing of fish and chip shops?
Kemi Badenoch
My hon. Friend is a doughty champion for his local fish and chip shops. We recognise the importance of fish and chip shops to local communities and the challenges they face. We have introduced a range of support measures to address the specific issues he raises, including changes to business rates that, across the country, are worth a total of £13.6 billion in lower bills. We are also supporting non-domestic energy customers through the energy bill relief scheme, and we recently introduced the energy bills discount scheme, which runs until March 2024. We will keep working closely with the sector as part of the Hospitality Sector Council to improve the resilience of businesses, including the fish and chip shops in Lowestoft.
Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)
It has now been 100 days since we first welcomed the right hon. Lady to her new post. In that time, we have seen steel production fall to record lows; the automotive sector has issued warning cry after warning cry that Government policy risks shipping jobs overseas; and the US has seen incredible sums invested under the Inflation Reduction Act and the EU has put forward its own significant response. Meanwhile, the UK remains trapped in the Conservatives’ low growth, high tax loop, with the lowest business investment in the G7. This morning, three of her predecessors, each from a different political party, have said that the Government need an explicit industrial strategy. Does the current Business Secretary agree with them?
Kemi Badenoch
I thank the shadow Minister for highlighting that we have had 100 days as the Department for Business and Trade, during which we have been able to launch the biggest free trade agreement that the UK has seen since we left the EU and since the trade and co-operation agreement. He also mentions a lot of systemic issues, which have been faced globally. He rightly talks about the US IRA and the EU green deal industrial plan, but it is good for me to mention that we are doing a lot in this space. For example, the issue that the automotive industries are talking about relates to rules of origin. This is something that the EU is also worried out, because the costs of the components have risen. This is not to do with Brexit; it is to do with supply chain issues following the pandemic and the war between Russia and Ukraine. I have had meetings with my EU trade counterpart; we are discussing these things and looking at how we can review them, especially as the TCA will be coming into review soon.
Mr Philip Hollobone (Kettering) (Con)
What would have been the answer to Question 19? How many businesses were supported by grant funding in North Northamptonshire during the pandemic?
James Wild (North West Norfolk) (Con)
UK Export Finance plays a vital role in supporting export opportunities, but a company in my constituency is having difficulties landing support to secure a contract based in one of our Trans-Pacific Partnership area countries. Will my right hon. Friend meet me to discuss this and how we can support that business?
Kemi Badenoch
I thank my hon. Friend for raising that. I will see whether I can get a meeting with him, but, if not, I will make sure that one of my officials is able to look into this issue specifically for him.
Dr Rupa Huq (Ealing Central and Acton) (Lab)
Kemi Badenoch
I thank the hon. Lady for raising that issue. As I said earlier in reply to a question about energy support for small businesses, we do know that businesses are facing high energy costs. The Government are currently paying about half of everyone’s energy bills. I talked about the energy bill relief scheme and the energy bills discount scheme. We are doing everything we can to support businesses in the hospitality sector, but if there is something that is specific outside that, I ask her to please write to us and we will see whether there is any further support that can be offered.
Richard Foord (Tiverton and Honiton) (LD)
Stephen Kinnock (Aberavon) (Lab)
I am honoured to chair the all-party group on steel, and, as such, I have invited the Secretary of State to meet us, as all four of her predecessors have agreed to do. I am very disappointed that she has declined to do so. I urge her to reconsider that position.
The US is investing $282 billion in green manufacturing. The Spanish and German Governments are each investing £1 billion in the decarbonisation of their steel industries. Labour would match that opportunity with a £3 billion clean steel fund, but the Government’s response to date has been woefully inadequate. When will the Secretary of State bring forward a steel transition strategy that matches up with what our competitors are doing and that matches the ambition of our professional and dedicated steelworkers?
Kemi Badenoch
I have not declined to meet the all-party group on steel; I just said that it was subject to diary requirements. Where I have been is in the hon. Gentleman’s constituency, visiting the steelworks. I did notify him before we went there, but he showed absolutely no interest in accompanying me to visit the steelworks in his constituency. We are spending quite a lot of money on supporting the steel industry. We look at what has happened at Teesside and how we have regenerated the former steelworks. Those on his side of the House, however, have spent most of their time smearing the Mayor of Teesside and making it very difficult for the businesses there to continue to make the investment they need in order to help turn the sector around.
Judith Cummins (Bradford South) (Lab)
Marshalls Bakery, a small business in my constituency, has just closed its doors after 43 years of trading. The owners told me that they were unable to withstand the combined pressures of covid, rising wheat and container charges and high energy costs. They feel let down and are angry at the lack of Government support for businesses such as theirs. Can the Minister tell me what further steps he is taking to ensure that other small businesses can survive in this challenging climate to provide the certainty from Government that they so desperately need?
Margaret Ferrier (Rutherglen and Hamilton West) (Ind)
Large global car makers have warned that the UK’s transition to electric vehicles will be impeded if the UK Government and the EU do not delay the stricter rules of origin, which could add tariffs on car exports. Will Ministers negotiate on the issue to safeguard the UK’s automotive industry?
Kemi Badenoch
The answer is yes; we are actively working on the issue, and we are not the only country impacted by it. Just yesterday, officials from Germany were talking about how they needed to look into it. It is due to the rising cost of components, which we will look at as part of our trade and co-operation agreement, but it is something that both sides are interested in resolving, so I assure the hon. Lady that we are actively working on it.
Alison Thewliss (Glasgow Central) (SNP)
Businesses and organisations in my constituency, and no doubt beyond, have ended up marooned on exceptionally high energy tariffs because they were forced to sign contracts at the height of the crisis. What conversations have Ministers had with Ofgem and with the energy companies to see what can be done to support those businesses, as those tariffs will be a drag on their future growth and development, and in some cases threaten their very survival?
Mr Speaker
First of all, that is a point of correction rather than a point of order, but if somebody has made a mistake in the information given to the House, it must be corrected. I will leave that to whoever is right or wrong, and I am not going to make a judgment.
Kemi Badenoch
Further to that point of order, Mr Speaker. I will write to the hon. Gentleman. I do not believe that what he has said is the case, but I will check the records and make sure that he gets a response to the correction he has made.
Mr Speaker
Thank you, Secretary of State. Please check, but please also correct the matter in writing for the record of the House—if that was the case, may I add?
Switzerland Trade Negotiations Launch
Kemi Badenoch Excerpts(1 year, 7 months ago)
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The Secretary of State for Business and Trade (Kemi Badenoch)
Today the Department for Business and Trade will launch negotiations for an enhanced and upgraded free trade agreement (FTA) with Switzerland, with the first round of negotiations to be held in London this May.
In line with the Government’s commitments to transparency and scrutiny, more information on these negotiations will be published and placed in the House Libraries. This will include:
The strategic case for an upgraded UK-Switzerland trade agreement.
Our objectives for the negotiations.
A scoping assessment, providing a preliminary economic assessment of the potential impact of the agreement.
A summary of the responses to the call for input on trade with Switzerland held in April 2022. This took views from consumers, businesses, and other interested stakeholders across the UK on their priorities for enhancing our existing trading relationship with Switzerland.
Switzerland is already one of the UK’s most important trading partners and a key market for UK businesses of all sizes. Total trade between the UK and Switzerland has quadrupled over the last 20 years to reach £52.8 billion in 2022. Switzerland is the UK’s 10th largest trading partner worldwide and our second largest non-EU trading partner in services.
Building on our long history of close relations and shared values, an enhanced UK-Switzerland FTA will modernise and improve on our current agreement, signed in February 2019. This is a continuity deal based on a more than 50-year-old agreement between Switzerland and the EU and does not contain any commitments on services, investment or digital trade, despite these accounting for roughly half of our economic relationship.
A new agreement presents opportunities to secure long-term certainty on current arrangements and upgrade these to boost bilateral trade and investment. It will benefit crucial UK sectors such as financial and professional services, as well as businesses exporting digitally delivered services. It is also an opportunity to reduce or remove burdensome tariffs and quotas on agricultural goods. In terms of mobility, we will seek to provide long-term certainty, building on the outcomes of the recently extended services mobility agreement.
The UK and Switzerland’s shared values also provide potential for greater co-operation in areas of mutual interest that trade can support, such as innovative research and development, and on our shared ambitions for tackling climate change. Negotiations provide an opportunity for both sides to defend free trade and showcase the best of European co-operation, demonstrating what two like-minded European nations can achieve outside of the European Union.
A comprehensive agreement with Switzerland is a key part of the UK’s strategy to secure advanced modern agreements with new international partners and upgrade existing continuity agreements to better suit the UK economy. It will provide opportunities for businesses big and small across the UK, unlocking trade and investment and opening up new exciting opportunities for growth in all regions.
The Government remain clear that any deal with Switzerland will be in the best interests of the British people and the UK economy. We will not compromise on our high environmental and labour protections, public health, animal welfare and food standards, and we will maintain our right to regulate in the public interest. We are also clear that during these negotiations the NHS and the services it provides are not on the table.
The Government will continue to keep Parliament updated as negotiations progress, including close engagement with the relevant parliamentary Committees.
[HCWS770]
Retained EU Law (Revocation and Reform) Bill
Kemi Badenoch Excerpts(1 year, 7 months ago)
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Sir William Cash (Stone) (Con)
(Urgent Question): To ask the Secretary of State for Business and Trade if she will make a statement on her failure to come to the House before she made the written ministerial statement on the Retained EU Law (Revocation and Reform) Bill and the article today in The Telegraph?
The Secretary of State for Business and Trade (Kemi Badenoch)
I am very sorry, Mr Speaker, that the sequencing that we chose was not to your satisfaction. I was—
Mr Speaker
Who do you think you are speaking to, Secretary of State? I think we need to understand each other. I am the defender of this House and these Benches on both sides. I am not going to be spoken to by a Secretary of State who is absolutely not accepting my ruling. Take it with good grace and accept it that Members should hear it first, not through a WMS or what you decide. These Members have been elected by their constituents and they have the right to hear it first. It is time this Government recognised that we are all elected—we are all Members of Parliament—and used the correct manners.
Kemi Badenoch
Mr Speaker, I apologise. What I was trying to say was that I am very sorry that I did not meet the standards that you expect of Secretaries of State. Forgive my language. I have been trying to make sure that I provide as much clarity as possible, so I am actually very pleased to have come to the House to speak on this issue.
I have published a written ministerial statement to explain that yesterday we tabled an amendment to the Retained EU Law (Revocation and Reform) Bill that amends the operation of the sunset in clause 1. It is a technical change that introduces to the Bill a schedule of retained EU law that will be revoked on 31 December 2023. The schedule includes around 600 pieces of legislation provided by nearly all Departments, and spans a huge number policy areas. We tabled the amendment in response to concerns raised in this House, and it will provide the legal clarity and certainty that has been called for.
I reassure my hon. Friend the Chair of the European Scrutiny Committee that the 600 pieces of legislation in the schedule are not the limit of our ambition—neither the beginning nor the end—but over the past year, as Whitehall Departments have been working hard to identify retained EU law to preserve, reform or revoke, it has become clear that time constraints have led to the programme becoming more about preserving EU laws than prioritising meaningful reform. That is why we are proposing a new approach. Had I known the intense excitement that the House would feel about this issue, I would have come running to make sure that the technical details could be investigated by all and sundry.
As I have said, we are proposing a new approach, one that will ensure that Ministers and officials are enabled to focus more on reforming retained EU law and doing so faster. I am pleased to say that the Government have already reformed or revoked more than 1,000 pieces of REUL. In addition to the list of about 600 revocations in the schedule to the retained EU law Bill, about 500 further pieces of REUL will be repealed by the Financial Services and Markets Bill and the Procurement Bill, which means that we will have repealed not 600 but more than 2,000 pieces of REUL by the end of the year.
We are committed to lightening the regulatory burden on businesses and helping to spur economic growth, and our Edinburgh reforms of UK financial services include more than 30 regulatory reforms to unlock investment and boost growth in towns and cities across the UK. Our regulatory reform announcement yesterday set out a long-term plan to improve UK regulation over the coming months. As a down-payment on that commitment, we announced changes that will reduce disproportionate EU-derived reporting requirements and could save businesses about £1 billion a year. That is just the first in a series of announcements that the Government will be making on reforming regulations to drive growth, and in addition to the schedule the powers in the Bill will still enable us to revoke, replace and reform any outdated EU laws that remain on our statute book by 2026. This new approach will provide space for longer-term and more ambitious reforms. Members will no doubt be pleased to hear that it will also mean that fewer statutory instruments will be required to preserve EU laws that are deemed appropriate to be maintained.
I want to reassure my hon. Friend that we will still fully take back control of our laws and end the supremacy and the special status of retained EU law by the end of 2023. That will ensure that we are ending the shadow statute book and the inappropriate entrenchment of EU law concepts in domestic statute.
Sir William Cash
Under the Standing Orders of this House, the European Scrutiny Committee is specifically charged with examining the legal and political consequences of EU legislation. The Committee reported on 21 July 2022 after a five-month inquiry in support of the Bill, which was passed unamended by a large majority in this elected House and by the Public Bill Committee, all of which endorsed the Government’s policy on the Bill.
Since February, the Secretary of State has been asked three times, formally and personally, to appear before the European Scrutiny Committee. Why has she failed to do so? The amendments published today are not accompanied by any explanation to the House—apart from her very short written ministerial statement yesterday and her article in the press today—despite the utter reversal in vital respects of the Bill as passed by this elected House. Why not? The amendments have not been subjected to any analysis or questioning by this House, which is now essential given the fundamental change in Government policy. The House is being treated in a manner that is plainly inconsistent with clear promises already made.
Will my right hon. Friend specifically seek and make arrangements for the immediate deferral of the Bill’s Report stage in the unelected House of Lords, which is due to take place on the 15th and 17th of this month, so that she can come to the European Scrutiny Committee next week and answer our questions—as provided for by Standing Orders—and produce a Command Paper before that Report stage to explain the reasons for these fundamental questions of constitutional importance, which affect all our constituents, all our voters, and the coherence of our statute book and our legal system?
Kemi Badenoch
My hon. Friend has asked many questions, and I will endeavour to answer them. I think he knows that he has heard the answers before, but I am nevertheless happy to respond on the Floor of the House.
My hon. Friend and I have had many private conversations in which we have discussed retained EU law. He wrote to me about attending the European Scrutiny Committee, and I replied that until the policy was settled I could not attend the Committee but instead could have engagement with colleagues, which is what I have done. I should, of course, be delighted to attend the European Scrutiny Committee. I attend numerous Select Committees in my role not just as Secretary of State for Business and Trade but as Minister for Women and Equalities, and I should be very happy to speak to the Committee, but—no doubt you will sympathise with this, Mr Speaker— there is no point having to talk about policy on the Floor of the House before we know exactly what is settled.
My hon. Friend claims that this is a change of policy, but it is a change of approach. The policy is still the same: we are ending EU supremacy, and we are ending interpretive effects. What we are changing is the way in which we are doing that. We could have ended up with a programme of 450 statutory instruments to preserve EU law. What I have done is respond to businesses in particular, but also to the parliamentarians—including many of those who are chuntering on the Opposition Benches—who have raised concerns with me about how we can have clarity and some transparency. I have shown exactly what we are doing. I have listed all the laws that we are removing. There is a key point to make here. We left the European Union not just to delete EU law from the statute book, but to make our economy better. To do that, we have to reform the laws. If we delete the laws from the statute book, we will be starting from scratch in bringing in the reforming primary legislation. This is a better approach. It was my suggestion to the Prime Minister. I am very pleased that he accepted it. I am very proud to be standing at the Dispatch Box showing that those of us who are Brexiteers can be pragmatic and do what is right for the British people. That is why I am very pleased to be explaining this change on the Floor of the House today.
Justin Madders (Ellesmere Port and Neston) (Lab)
What an absolute shambles. I think that the Secretary of State is the sixth different Government representative at the Dispatch Box on this Bill, and unfortunately for her she is the one who will have to hear from us the words that no Government Minister wants to hear: we told you so. We did, repeatedly, as did the Institute of Directors, the TUC, the Bar Council and a host of other organisations.
It has to be asked: why did not the Government listen to those experts in the first place? It was completely unrealistic, reckless and frankly arrogant to think that they could strike 4,000 laws from the statute book in the timescale set out in the Bill. It is no use blaming the blob, the anti-growth coalition or the BBC. This humiliating U-turn is completely down to Government hubris that has found them crashing up against reality, so will the Secretary of State apologise to the entire House, and to all the trade unions and business, legal and environmental groups that were told by the Government that they were wrong?
Will the Secretary of State also apologise for announcing this policy change not to the House but to her friends—or should I say now her former friends—in the European Research Group and to the press? Can she tell us at what point the Government decided on this change of course and on what basis they have chosen the 600 regulations to be removed—or is it 2,000 now, because she mentioned that in her statement as well?
Although we welcome the humiliating climbdown that sees the cliff edge go, the Bill still gives enormous powers to Ministers and at last the cat is out of the bag about what they want to do with them. We are concerned that, although the mode of delivery has changed, the destination has remained the same. That is revealed in the “Smarter regulation to grow the economy” paper released yesterday, which contains a clear plan to water down TUPE and working time rights. We have warned time and again of the threat to workers’ rights in the Bill and in response the Minister said:
“The Government have no intention of abandoning our strong record on workers’ rights, having raised domestic standards over recent years to make them some of the highest in the world.”––[Official Report, Retained EU Law (Revocation and Reform) Public Bill Committee, 22 November 2022; c. 144.]
Well, we can strike that from the record, as we can strike the Secretary of State’s leadership hopes. How can a Government elected on a manifesto promise to
“build on existing employment law”
justify an approach that will water down workers’ protections? It just goes to show that you cannot trust the Tories with workers’ rights.
Kemi Badenoch
One of the things that I have found most illuminating about this process is how little those on the Opposition Front Bench understand what we are doing. They simply stand up and repeat their usual talking lines. We have made repeated commitments that we are not watering down workers’ rights in this House. If the hon. Gentleman actually read and understood what we have written, he would understand that we are maintaining workers’ rights but reducing the bureaucracy. That would save £1 billion and is something that both workers and employers want. I know that it is really tough and there are lots of words in it, but the truth is, I say to those on the Opposition Benches, that I can explain it but I cannot understand it for them.
This is a very simple change in approach. We are having the exact same effect that we were always going to have. We are removing more than 2,000 pieces of EU legislation. It is delightful to see those on the Labour Front Bench and the ERG on the same side for once, as they claim to be. If I am upsetting people on both sides, I am probably taking the pragmatic middle ground and I am pleased to be doing so.
There is so much opportunity we can take on EU law reform and that is what this programme is about.
Sir Peter Bottomley (Worthing West) (Con)
May I say to my right hon. Friend the Secretary of State that I am not upset? Her description of this change of approach is useful, and it meets many of the criticisms of the unamended Bill. I hope it is successful, and I hope people on both sides of the House and in industry make sure we keep the right bits and drop the bits that are useless.
Kemi Badenoch
I completely agree with my hon. Friend. We are taking an approach that works for everybody, not just for a particular group. We have to do what is right for business, we have to do what is right for consumers and we have to do what is right for the entire country. I voted to leave, and this is exactly the sort of reform I thought we would make when we left the European Union. I am very pleased to be able to take this through the House.
Alyn Smith (Stirling) (SNP)
I confess to being a wee bit conflicted this morning. I led for the SNP during our consideration of the Bill, and my key phrase was, “If you must do this damn silly thing, don’t do it in this damn silly way.” I am at least glad to see that we are doing this in a less damn silly way than we were, although I still disagree with it.
I share the anger that we have heard from Conservative Members. I respect their principle, even though I disagree with it. I do not like what the Bill is trying to do. I voted to remain, I enthusiastically committed to Scotland’s path back into the European Union and I want to see the UK have a close relationship with the EU, but I accept the majority view of this House. The Prime Minister made this commitment and he has questions to answer, because to describe this as a change of direction and a minor technical thing is to miss the point. This is a gross betrayal of the promises made to secure his election, and it is a key part of his personal manifesto. I do not think that betrayal should pass without consequence.
I am glad to see the end of sunsetting, which is a pragmatic change about which I should be glad, but I still do not like the Bill. It can still overrule the Holyrood Parliament on retained EU law, which is democratically offensive. We should also consider the costs of this exercise. What assessment have the Government made of the direct cost to the taxpayer of the work done thus far and now abandoned? I will be tabling parliamentary questions on this, but what wider assessment has been made of the costs to organisations such as the National Farmers Union of Scotland and others in dealing with this uncertainty?
Kemi Badenoch
Again, I think Opposition Members are very confused about what this change is trying to do. [Interruption.] They are confused. The hon. Member for Stirling (Alyn Smith) talks about certainty, and this is the certainty for which people asked. He talks about a change and a betrayal, and I do not understand where that emotional language is coming from. No work has been wasted. It is the efforts of civil servants that have identified which bits of law need to be repealed and which need to be reformed. There is not enough parliamentary time, given that we have only one full Session, to carry out all the reforms we would like to carry out. If we are to do that, we need to truncate the process to make it about repeal and reform, not about preservation. The Bill, which was meant to be about reform, has turned into a preservation exercise. [Interruption.] I can see the hon. Member for Stirling squinting and looking confused, so I am happy to give him a private briefing. This process is technical and complex. I picked up this task in February, and I buried myself in the detail. This will deliver on the Prime Minister’s promises and make sure that we generate the benefits of Brexit.
Mr Mark Francois (Rayleigh and Wickford) (Con)
Well said earlier, Mr Speaker.
I have checked Hansard, and the Bill passed Second Reading in the Commons on 25 October 2022 with a Government majority of 56, and with not a single Tory MP voting against it.
Mr Francois
No one voted against it, Bob. Not even you.
On 18 January 2023, the Bill passed Third Reading with a Government majority of 59, and again not a single Tory MP voted against it. The Bill unified the Conservative parliamentary party on an admittedly controversial issue. It left this House without a single Tory MP opposing it. Why, after it has gone to the House of Lords, have the Government performed a massive climbdown on their own Bill, despite having such strong support from their own Back Benchers? Secretary of State, what on earth are you playing at?
Kemi Badenoch
I have already explained the reasons why we have changed the approach and I am happy to repeat them for my right hon. Friend. He should know that I am not somebody who gets pushed around lightly. The fact is that I went in, looked at the detail and decided that this was the best way to deliver this. I stress again that this was not the Prime Minister’s decision. As a Secretary of State, I have to be responsible and look at what we can make sure is deliverable. This is the best way to get my right hon. Friend the Member for Rayleigh and Wickford (Mr Francois) what he wants. It may be different from what was put on the Floor of the House, but if he wants what I want, which is ending EU interpretative effects by the end of this year, ending the supremacy of EU law by the end of this year—[Interruption.] He is not in the room. He is very welcome to send me the list of things that he wants repealed, but this is the way to get it done.
Stella Creasy (Walthamstow) (Lab/Co-op)
The biggest problem with this Bill is not the haste and chaos that has come with it, the failure to be able to identify what is EU retained regulation or the fact that it risks the Windsor agreement; it is that even with the changes the Secretary of State is now proposing, the Government are giving themselves power over 4,000 areas of public policy and taking back control from MPs over what happens next on them—that has not changed. The Secretary of State says that she is across the detail. Given the attitude that she has expressed today towards this Chamber, the process and the role of MPs, if she is serious about scrutiny and democracy, will she accept the amendment standing in the names of Lord Hope, Lord Anderson, Lord Hamilton, who is a strong Brexiteer, and Lord Hodgson, also a Brexiteer, that will give this place the ability to have the final say, whether laws are being revoked, rewritten or reformed? Will the Secretary of State accept that amendment—yes or no?
Kemi Badenoch
We can always discuss amendments. The ones I am supporting are the Government amendments, which provide the certainty and clarity that Members in both Houses have asked for. What I am doing is a more transparent process that provides a lot more clarity. The fact that everyone can now see all the laws on the dashboards and the things that we are removing shows that we are coming to this process in good faith. I would appreciate Opposition Members doing the same.
Mr Speaker
I call the Chair of the Public Administration and Constitutional Affairs Committee.
Mr William Wragg (Hazel Grove) (Con)
This is very bracing for a Thursday morning, and there is nothing I enjoy more than a good bunfight with a Secretary of State. I say gently that although many of us would have a great deal of sympathy with what the Secretary of State has outlined, it is important to make the point that the manner, tone and approach taken not just by her at the Dispatch Box now, but generally, is much improved, and the House tends to be much more receptive to it, when proper processes are followed and invitations to attend Select Committee are readily accepted. I urge that gently as a lesson that might be drawn from this. If she was at all concerned by the volume of statutory instruments that might be descending upon us, the attendance this morning proves that there are plenty of willing volunteers for such Committees.
Kemi Badenoch
I do not disagree with that, but the statutory instruments that I would want us to be focused on in this House should be the ones that are repealing EU law; all those hundreds of statutory instruments that would have come through were for retaining and preserving EU law. That is not what we said we were going to do, which is why this approach is better. It is faster and it accelerates us towards reform. I do not think anyone in this House can accuse me of shying away from Select Committees, questions or the Dispatch Box. I am always happy, no matter how difficult the questions are, to take the questions here.
Mr Speaker
In fairness, I have had to put the urgent question on.
Daisy Cooper (St Albans) (LD)
Despite this screeching U-turn, the Bill still includes a power grab over environmental protections. Living in a nature-depleted country, it really concerns me that the Secretary of State can still change thousands of environmental laws at will, through secondary legislation, without scrutiny. Many of those laws relate to sewage that can be dumped into our rivers and chalk streams and on to our beaches. Will she make a firm commitment at the Dispatch Box today that the Government will not repeal or change any environmental law without due scrutiny by this House?
Kemi Badenoch
Again, these questions worry me, because they show that the process we are changing is not fully understood by the House. [Interruption.] It is certainly not understood by the hon. Lady. I can tell that many others do understand this. The regulations that are being repealed are going on the schedule. If she has a specific one on that schedule that she thinks is environmental and should not be repealed, she should say so. Instead, she is speaking in hypotheticals. She should look at the amendments and what they are doing, and if there are specific things she has concerns about, she can write to me. Claiming that things are being removed without looking at the schedule shows that she does not understand what we are doing.
Mr Jacob Rees-Mogg (North East Somerset) (Con)
Will my right hon. Friend explain whether this abdication to the House of Lords has come about because of civil service idleness or a lack of ministerial drive?
Kemi Badenoch
No, I do not think that it has come out of any idleness. If anything, I would say that the civil servants have been working feverishly on this, and what they have been doing is preserving, not repealing and certainly not getting the reforms that we want. This approach means that they can now do that. I know that it is disappointing, because it is not what my right hon. Friend had wanted; it was not his approach. I have spoken to him about it and explained my reasoning. I do not think that we will come to an agreement on this, but I would like him to understand that I am doing this because I genuinely think that this is the best way to deliver what those of us on the Conservative Benches voted for.
Karin Smyth (Bristol South) (Lab)
The Secretary of State seems to say that we have intense excitement about being here today and she is surprised. Our law is the basis of our democracy, and the flippant and ill-prepared way in which this has been brought forward is a disgrace; it is not worthy of our Parliament or, indeed, of our country. In the Public Administration and Constitutional Affairs Committee, we are currently looking at international treaties. It is clear that our system for reviewing and monitoring international treaties per se is not up to scratch, and I hope that the Secretary of State will engage with that process. [Interruption.] She says that there is no time. She is in control of the time in this place as a member of the Government. It is not for me to speak for those on the Labour Front Bench, but I am sure that if there were discussions about giving the decision more time and perhaps to bringing it back, given the changes that are being made, that would be met favourably by Members on the Labour Benches. What lessons is she learning about the involvement of this place in the scrutiny of these treaties?
Kemi Badenoch
It is very surprising to hear the hon. Lady criticise the scrutiny process given that it was brought in by a Labour Government under the Constitutional Reform and Governance Act 2010. The CRaG process on international treaties, which is what she is talking about, was brought in, as I have said, not by a Conservative Government, but by a Labour Government. We are carrying out this process using parliamentary procedure and Government amendments in the House of Lords; we are doing things on the Floor of the House. We are making sure that Parliamentarians have transparency. That is the right way to do it and I will not apologise for that.
Dominic Raab (Esher and Walton) (Con)
I thank my hon. Friend the Member for Stone (Sir William Cash) for his question and the Secretary of State for her response. I recognise the balance that she is trying to strike within the timeframe. There is a very large number of EU regulations at the Ministry of Justice, and yet we managed to identify more than 60% that could be either repealed or substantially revised within the timeframe. May I gently suggest to her that it would help the House with its scrutiny if a Department-by-Department analysis of what has been identified so far is published? May I also gently suggest that she resist the resistance in Whitehall that suggests it cannot be done. If it can be done at the MOJ, I am pretty confident that it can be done elsewhere.
Kemi Badenoch
That is right. I have published the dashboard that shows all of the laws that have been identified. Some are still, even as we speak, being identified now. The MOJ has done a good job in identifying those that are likely to be on the schedule—the ones that my right hon. Friend is referring to specifically. This is a pragmatic and balanced approach. I urge Members across the House to look for the opportunities for reform. We can hear those on the Labour Front Bench chuntering, but they do not have any ideas. They do not know what they want to do. All they want to do is sit down and complain about what we are doing. They are completely bereft of imagination and any sort of direction or approach. We are the only ones who have a way of delivering for this country, and we will continue to do so.
Kirsten Oswald (East Renfrewshire) (SNP)
What a guddle! This Government amendment does absolutely nothing to address the powers in the Bill for UK Ministers to act in areas that are devolved to Scottish Ministers without consent or scrutiny by the Scottish Parliament. The Scottish Parliament has made its views clear on the Retained EU Law (Revocation and Reform) Bill. It has already voted in favour of a motion calling on the UK Government to withdraw it. That is the only way to deal with all of the risks that this damaging, anti-democratic legislation poses. Does the Secretary of State see that, and does she see why it is ever clearer that an independent Scotland in the EU is the only way to secure the best future for Scotland?
Kemi Badenoch
I am trying really hard not to laugh at what the hon. Lady has said. She is in a party that cannot even decide who paid for a caravan and is falling into a complete shambles. How will it in any way be able to do the sort of technical work we are doing? I am working with—[Interruption.] The SNP makes a lot of noise, but the way it is running Scotland shows that Bills such as this are best left in the hands of UK Government Ministers to stop the SNP making a shambles of everything.
Sir Desmond Swayne (New Forest West) (Con)
The advantage of a sunset is that it provides a sense of urgency. Now there is not one, is there?
Kemi Badenoch
There is still a sunset, and it will end the interpretive effects of the supremacy of EU law. The same number of measures that we were likely to revoke by the sunset will be in the schedule. As I said, the process had turned from one where we were reforming, to one where we were retaining—I know that is what the Bill literally says, but its purpose had been subverted because of the approach originally taken, which these amendments should address.
Clive Efford (Eltham) (Lab)
There is only one reason the Secretary of State is here: because she was brought here by an urgent question. The idea she is open to scrutiny is for the birds. There is also only one reason she tried to avoid it: because her Back Benchers are so angry. She has managed to divide her party again over the issue of Europe. This change is not taking back sovereignty to this Parliament, which those in favour of Brexit spoke about; it is a power grab by the Executive, allowing them to make decisions on 4,000 pieces of legislation. What will she do to ensure that her proposal has proper scrutiny through Committees and on the Floor of the House?
Kemi Badenoch
The point that the laws that we are not having on the schedule will either be kept or reformed—the reform process will be scrutinised in the House—is one that I have explained before. I am happy to make it again a thousand times if necessary for Opposition Members who clearly had scripted questions, which they have not been able to adapt to the comments made on the Floor of the House. This is a pragmatic approach that brings together people not just across the House but across the country; it delivers on the promises that we made, and I stand by them.
Mr David Jones (Clwyd West) (Con)
As my hon. Friend the Member for Stone (Sir William Cash) has pointed out, the Secretary of State has been invited on three separate occasions to appear before the European Scrutiny Committee, but for whatever reason has failed to do so. Given the seriousness of the volte-face she has now performed, will she accept the invitation of the Chairman, made this morning, and appear before the Committee next week? If not, why not?
Kemi Badenoch
Because I am in Switzerland next week and in the middle east the week after. As I said to the Chair of the European Scrutiny Committee, I am happy to appear in front of the Committee, and now that we have a settled policy I will do so.
Fleur Anderson (Putney) (Lab)
As my hon. Friend the Member for Ellesmere Port and Neston (Justin Madders) said, this Bill is a shambles and it is felt to be so by my constituents in Putney, for whom this is having real-world effects. Businesses in Putney have seen rising costs and less investment because of the threat of the sunset clause and still not knowing what will be in it. The Government have left businesses across the country high and dry and the Bill is far from oven ready. Can the Secretary of State explain how the £1 billion figure for business savings has been estimated—or is that more pie in the sky?
Kemi Badenoch
You can see a classic example of what I am talking about, Mr Speaker. The hon. Lady complains that the sunset would not allow her constituents to know what is being repealed, but the whole purpose of the amendment is for people to be able to see what is being repealed in the schedule. I ask Opposition Members to please read the amendment and wait until the schedule arrives. On what we want to do and reform, the £1 billion savings have been calculated not just by the Department for Business and Trade, but by multiple external organisations that have raised with the Department how the working time regulations could be improved. Those are the benefits we can get from Brexit to make things better, and we will continue to do so.
Sir Robert Neill (Bromley and Chislehurst) (Con)
Replacing retained EU law is both inevitable and necessary now that we have left the European Union, but does my right hon. Friend accept that it is critical that we do so in a way that preserves legal clarity and certainty, which are vital for business confidence? Does she accept that some of us deliberately did not vote for the Second Reading of the Bill because of a flaw in its drafting that did not identify that which was to be revoked, and would have created precisely that uncertainty? Does she accept that some of us are better placed to support the Bill now that that gap is being sensibly and pragmatically filled in—if I may say—a very Conservative and pro-business fashion?
Kemi Badenoch
I completely agree with my hon. Friend. He is absolutely right: the Bill provides business certainty and legal certainty and removes interpretive effects and the supremacy of EU law, and it will do so by the sunset. Most importantly, it gives us the space to focus on the reform programme, which we announced yesterday and which will deliver the benefits of Brexit.
Carol Monaghan (Glasgow North West) (SNP)
The Secretary of State has explained that the issue is not her U-turn, but that silly MPs on both sides of the Chamber have not properly understood the legislation. Can she explain to this silly MP, in her wonderfully patronising manner, which she has used many times this morning, what would prevent her from making a U-turn on workers’ rights, including holiday and maternity pay?
Kemi Badenoch
The hon. Lady calls herself a silly MP; it is not my place to disagree. She asks about the changes to holiday pay. We are just making the bureaucracy easier; we are not taking away any workers’ rights—we have repeatedly committed on the Floor of the House to not doing so. What Opposition Members are afraid of is reform and any sort of change. They cannot envision a world in which anything could possibly be better than the status quo. We are different; we believe in the aspirational approach and ambition for this country. They just want to stay the same and ossify. I will not stand at the Dispatch Box and allow that to happen. We are making changes that will benefit the British economy, British businesses and British workers.
Michael Fabricant (Lichfield) (Con)
I am less concerned with process, and I am quite for pragmatism, but my right hon. Friend has shown a tin ear if she thought for one moment that these changes would not arouse interest in the House of Commons. It needed a UQ to bring her here this morning. Nevertheless, my key question is this: is she convinced that, by this new methodology, the same number of laws will be repealed in the same time as if the pragmatic change had not been made?
Kemi Badenoch
The answer is yes. I wrote back to and engaged with all the Members who wrote to me about this issue as soon as I became Business Secretary. The response had been so quiet that it felt to me very much like a technical change, which is what it is. I am very happy to explain as much as possible on the Floor of the House. But I emphasise that this was my decision; it was not that of the Prime Minister or civil servants. It was me looking at the detail and deciding that this was the best approach because it is how we will get to that number but create more time for reform. It is about accelerating the process. I do not think anyone in this House can claim that I am not a Brexiteer. I stood here less than a month ago talking about how we had successfully negotiated the comprehensive and progressive agreement for trans-Pacific partnership, the biggest trade deal that we have ever done in this country since we left the EU. That is a benefit of Brexit. I am very proud to continue to do that. This is the best way for us to deliver more benefit over and over again rather than spend our time on parliamentary procedure, which does not mean much to people on the doorstep.
Alison Thewliss (Glasgow Central) (SNP)
As chair of the all-party parliamentary group on working at height, I have been trying to get clarity for some time on the very specific Work at Height Regulations 2005. Can the Secretary of State tell me whether those regulations will be included or protected? The assurances that I have had so far have not provided the clarity that the sector needs.
Kemi Badenoch
The hon. Lady will know that I was not privy to those conversations. If she writes to me with the specifics, I should be able to provide an answer. What we have talked about changing is the bureaucracy around reporting, and that does not sound like what she raised.
Martin Vickers (Cleethorpes) (Con)
As a committed Brexiteer, and having voted in the 1975 referendum to leave the European Economic Community, as it then was, I want to see the benefits of Brexit delivered as soon as possible. But I do recognise the concerns that have been expressed to me by businesses in my constituency, and I think the approach being taken by the Secretary of State is the best one. Could she give an assurance that if I or any Member bring forward recommendations for measures to include in the list, she will make those changes as quickly as can be arranged?
Kemi Badenoch
I thank my hon. Friend for his comments. That is exactly what this approach is trying to generate. We need to find the things that we know are holding Britain back, rather than just delete things because no one has found a reason to keep them. I think that if he speaks to businesses in his constituency, he will have many suggestions for measures that may require not complete revocation but reform, and if they are going to be reformed, we need to first keep them and then reform them, rather than first delete them then try to reform them. That is what this approach does.
Pete Wishart (Perth and North Perthshire) (SNP)
The right hon. Lady is doing herself no favours at all this morning with her patronising and arrogant manner, not just to Opposition Members but also to her hon. Friends. I am all for upsetting her hon. Friends, and it looks like in the eternal struggle between the blob and the Mogg, the blob has prevailed. Is it not the case that, in their haste to create this hard Brexit utopia, reality has finally caught up with them? Does it not look like the Conservative party—this fragile Brexit coalition—is now starting to fragment into its constituent parts?
Kemi Badenoch
No, that is complete nonsense. The hon. Gentleman is talking about what he hopes and wishes would happen, rather than the reality.
Greg Smith (Buckingham) (Con)
I respectfully disagree with my right hon. Friend that this is a technical change, given the different status that retained EU law has in our system, but I look forward to discussing that further with her when she appears before us at the European Scrutiny Committee. In the meantime, can she give the House an assurance that not one jot of the concessions given in the House of Lords over this Bill are anything to do with upholding any commitment made in the negotiation of the Windsor framework?
Kemi Badenoch
I am very happy to say that. I was not involved in negotiations on the Windsor framework, and I have said repeatedly that this is my plan. It is not the Prime Minister’s plan, and it is not the civil servants’ plan—it is my plan. This is me going into the detail and deciding that this is the best way to deliver it. What my hon. Friend says about the special status of EU law is right. That is one of the things that is not changing; that is still ending. The sunset is still there for interpretive effects—for the supremacy of EU law—by the end of this year, which is the big thing we are trying to deliver, rather than lots of redundant regulations, many of which we have already got rid of. I re-emphasise that we will get rid of about 2,000 pieces of legislation in total by the end of this year. The schedule is just the final 600, and another 200 commencement regulations go with them. I think he will be very pleased with the result.
Christine Jardine (Edinburgh West) (LD)
May I respectfully say to the Secretary of State that I do understand the amendment, and I believe colleagues on both sides of the House understand it? We simply do not agree, and it is an important component of democracy that we respect one another’s right to disagree. If there is any confusion and uncertainty today, it has been caused by the chaotic manner in which this has been done and the fact that the House feels the Secretary of State has had to be dragged here to explain it to us. Does she agree that a situation where the House feels that there will not be an opportunity to debate something as important as this and scrutinise it properly is unacceptable?
Kemi Badenoch
I disagree, because we have debated it. The only change is the use of a schedule. The hon. Lady claims that she disagrees with the Bill. The Bill passed through the House. All that is changing is how we are listing the regulations. The intent has not changed. Of course, I respect her right to disagree, but she is still claiming that the amendment does something it does not, which is why I keep emphasising that I am not sure Opposition Members understand it.
Dr Luke Evans (Bosworth) (Con)
I had the privilege of PPS-ing the Bill when it was in Committee, so I have seen the complexities, the ideologies on both sides of the argument, and the difficulties inherent in trying to get the Bill through. What my constituents and people up and down the country—the vast majority of whom did vote for Brexit—want to know is what the message is for them, as they now have concerns that this could be reneged on.
Kemi Badenoch
I have a very strong message for them. My hon. Friend can tell his constituents that the Prime Minister is a committed Brexiteer, the Secretary of State for Business and Trade is a committed Brexiteer, and we are making sure that we can deliver this on time but actually show the benefits of Brexit, not just parliamentary procedure and legislative activity. That is not the outcome that is going to be delivered for the country, it is the process. This urgent question has shown that quite often, we spend too much time on process and not enough on outcomes. This is an outcomes-focused Government, and that is why I have made this change and why I will deliver for my hon. Friend’s constituents.
Jim Shannon (Strangford) (DUP)
It would seem that there can be movement regarding decisions on EU laws when this Government see fit. Can the Secretary of State outline whether this symbolises a change in policy that will enable the final work on getting the protocol solutions finalised, in order to enable business and trade and allow everyone in Northern Ireland—Unionists as well as nationalists—to operate on an equal footing with those on the UK mainland?
Kemi Badenoch
I can reassure the hon. Gentleman that this is not a change in policy: it is a change in approach, using a schedule to list exactly what we are removing. The purpose of the Bill was to remove EU law, and as the process was changing to one of preservation, we have just changed the approach slightly to make sure that we can conclude when we want to conclude, which is at the end of this year, and focus on reform. We are very pragmatic; we continue to listen to voices across the House and across the country. Many of the questions that the hon. Gentleman has raised are for my colleague the Secretary of State for Northern Ireland, but he will know that if he comes to me with a problem, I will always endeavour to solve it.
Bob Blackman (Harrow East) (Con)
Between 2016 and 2019, the Procedure Committee heard regularly about the thousands of statutory instruments that either had to be translated into UK law, repealed, or reformed in some way. The problem that the Secretary of State now has is that by taking the pressure off that timetable, there will be a concern among Members on all Benches as to what happens, after the sunset clause kicks in, to the statutory instruments and other laws that we would like to see repealed or amended. What is the timetable, and how will it work?
Kemi Badenoch
The hon. Gentleman will be pleased to know that this change in approach actually helps with that. It allows us to continue beyond the end of this year, whereas the Bill as originally drafted meant that if we had not found things, they would just end up in UK statute with no mechanism to change that. I have now created a mechanism for us to continue, but I have also made sure that the time we spend in this House is about reforming and improving, not preservation, because that would just have swallowed up so much time and not delivered for our constituents.
Mr Deputy Speaker (Mr Nigel Evans)
I thank the Secretary of State for responding to questions for over 45 minutes.
India Trade Negotiations
Kemi Badenoch Excerpts(1 year, 7 months ago)
Written StatementsRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Secretary of State for Business and Trade (Kemi Badenoch)
The eighth round UK-India free trade agreement (FTA) negotiations took place from 20-31 March. The ninth round took place shortly afterwards, from 24-28 April. As with previous rounds, these rounds were conducted in a hybrid fashion, a number of officials travelled to each other’s nations for negotiations and others attended virtually. Detailed talks took place across a range of policy areas.
The UK-India trade relationship was worth £36 billion in 2022. A deal which respects the domestic sensitives of both sides will strengthen the economic links between the UK and India, boosting the UK economy and bringing benefits to UK businesses, families and consumers.
In this negotiation, as with all our FTA negotiations, the NHS and the services it provides is not on the table. This Government will continue to work towards a high level of protection of the environment in new trade agreements.
We have provisionally closed 17 chapters across the FTA, and both sides continue to work towards a modern and comprehensive agreement. We will only sign a deal that is fair, balanced and ultimately in the best interests of the UK.
The 10th round of negotiations is due to take place in the coming months.
The Government will continue to keep Parliament updated as these negotiations progress.
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