Oral Answers to Questions

Kevin Hollinrake Excerpts

Thursday 14th September 2023 Commons Chamber

[Theresa Villiers (Chipping Barnet) (Con)]

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

[The Parliamentary Under-Secretary of State for Business and Trade (Kevin Hollinrake)]

My Department is making it easier to do business every single day. Our smarter regulation programme—which includes implementation of the reforms recommended in the report by the taskforce on innovation, growth and regulatory reform, co-authored by my right hon. Friend the Member for Chipping Barnet (Theresa Villiers)—is reducing regulatory burdens for business and reducing costs for consumers. We have announced reforms to employment law, wine regulation and product safety regulations, and further reforms will be announced soon.

[Theresa Villiers]

I thank the Minister for his answer, but can we have more urgency across Departments on regulatory reform? Using our Brexit freedoms to modernise our regulation is a key way to grow the economy and raise living standards, so can we see more progress on reforming regulation in areas such as personal data, clinical trials, agri-tech and satellites?

[Kevin Hollinrake]

My right hon. Friend the Member for Chipping Barnet is absolutely right to push us on this issue. We are working across Government to implement reforms. So far, we have delivered 10 of the 69 recommendations identified in the TIGRR report, in areas such as offshore wind and reforms to the Medicines and Healthcare products Regulatory Agency. Delivery of a further 49 is ongoing, in high-profile areas such as artificial intelligence reform, easing clinical trials, pensions, the ability to invest in venture capital, the General Data Protection Regulation and the seed enterprise investment scheme, all of which is saving businesses billions of pounds. My right hon. Friend the Secretary of State will shortly write to my right hon. Friend the Member for Chipping Barnet to confirm all those points.

[Andrew Selous (South West Bedfordshire) (Con)]

6. What steps her Department is taking to support business exports.

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[Kenny MacAskill (East Lothian) (Alba)]

7. What recent discussions she has had with (a) NGOs and (b) charities on the inclusion of human rights considerations in trade negotiations.

[The Parliamentary Under-Secretary of State for Business and Trade (Kevin Hollinrake)]

The Government are committed to universal human rights, the rule of law, free speech and fairness. Those values guide all aspects of our international policy, including our approach to trade.

[Kenny MacAskill]

As trade talks continue with many countries that have deplorable human rights records and as discussions continue with India, will the Minister ensure that we receive binding commitments on human rights—particularly in relation to labour practices—rather than simply warm words, and that discussions continue with NGOs, which are well placed, and often better placed than the Foreign, Commonwealth and Development Office, on what is going on?

[Kevin Hollinrake]

I thank the hon. Gentleman for his question. The UK will continue to show global leadership in encouraging all states to uphold international human rights obligations and to hold those who violate or abuse human rights to account. The UK has successfully included labour, environment and gender provisions in the free trade agreements that we have signed—with Australia and New Zealand, for example. Those both contained dedicated chapters on trade, gender equality, labour and the environment. They uphold human rights but, crucially, also level the playing field for our UK businesses.

[Patrick Grady (Glasgow North) (SNP)]

9. What recent assessment she has made of the impact of her trade policies on the cost of food.

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

14. Whether she has had recent discussions with (a) Cabinet colleagues and (b) the Scottish Government on support for Scotland’s hospitality sector.

[The Parliamentary Under-Secretary of State for Business and Trade (Kevin Hollinrake)]

As the hon. Member will be aware, hospitality support is devolved. We continue to provide energy support via the energy bills discount scheme, benefiting hospitality businesses across the UK. I would be happy to meet her and any of her colleagues to see how we can help hospitality businesses across the whole UK.

[Deidre Brock]

That is excellent to hear, because the hospitality sector plays a crucial role in Scotland’s economy, but it has consistently been let down by the UK Government, who repeatedly fail to support the industry with the unique challenges it faces. Businesses across Scotland are grappling with inflationary pressures, labour and skill shortages and the ever-increasing complexity of trading rules with 27 countries we once traded with freely. Why will the Minister not accept that Brexit lies at the heart of these problems?

[Kevin Hollinrake]

If the hon. Lady looks again, she will find that the Scottish Government lie at the heart of these problems. In England, all eligible businesses can get 75% relief on their rates, subject to a cap of £110,000, while in Scotland, rates relief is available only to small businesses and could be as low as between 25% and 0% for individual properties with rateable values from £15,000. There is far more support available for English businesses than for Scottish businesses. I think she should go back and look again at the facts.

[Jonathan Edwards (Carmarthen East and Dinefwr) (Ind)]

15. Whether she has had discussions with courier services on deliveries to isolated rural areas.

[The Parliamentary Under-Secretary of State for Business and Trade (Kevin Hollinrake)]

I appreciate the hon. Member’s interest in ensuring a fair deal for his constituents. The Government’s universal service obligation on Royal Mail guarantees delivery of parcels at uniform rates throughout the UK, without any geographical restrictions. Where other courier businesses decide to serve should be a commercial decision for them.

[Jonathan Edwards]

A constituent who visited my surgery recently complained that one courier service in particular would not deliver to his isolated rural property. The choice of courier is, of course, currently a matter for retailers. Do the Government agree, though, that there is a case for saying that large retailers could offer the consumer the choice of which courier service should be used? That would empower consumers and hopefully improve performance via competition.

[Kevin Hollinrake]

The hon. Member raises a very important point. Competition plays a role in this, of course. It is absolutely right that retail business should look at this and try to get the lowest cost for their customers in terms of courier charges. It is, as he acknowledges, a commercial decision for individual retailers, but I absolutely applaud the points he raises. These businesses should be aware of those costs, because they can add significantly to the costs of the products they are selling.

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

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

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

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

[The Parliamentary Under-Secretary of State for Business and Trade (Kevin Hollinrake)]

My right hon. Friend raises an important point. The Parliamentary Partnership Assembly created under the trade and co-operation agreement is a parliamentary body independent of Government. The Government value its work and its role supporting a mature and constructive relationship with the EU, rooted in shared values and delivering on shared interests. She is right that we should look forward, not backwards.

[Mr Speaker]

I call the shadow Secretary of State.

[Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)]

The loss of Wilko is a significant blow to the nation’s high streets. However, more concerning is that no rescue has proved possible because several bidders have said that town centre retail is no longer a viable business model. In the light of that, do the Government really believe that their current policy environment is sufficient for British high streets to thrive?

[Kevin Hollinrake]

We are very concerned for the families affected by Wilko’s demise. The world of retail is a very competitive marketplace. I do not accept the hon. Gentleman’s premise that the high street is dead—not at all. It is reshaping itself, and while it does so we will help it, such as with the £13.6 billion of rates relief over the next five years.

[Jonathan Reynolds]

Ministers’ answers do not match the scale of the problem; 12,500 Wilko workers alone are at risk of redundancy. Labour’s plans for the high street are about reforming business rates, tackling late payment, cracking down on antisocial behaviour and stopping premises being left empty, with councils having more powers. The problem demands a response from Ministers. Based on their answers today, this Government have simply given up on the British high street.

[Kevin Hollinrake]

That is complete nonsense. This week, I met Helen Dickenson from the Retail Sector Council to discuss this matter closely. There are certain situations in certain companies of course. I guard the hon. Gentleman against political opportunism on the back of those 12,500 jobs, many of which have been picked up by other retailers such as Poundland in rescues of stores. On his point about business rates, which I hear time and again, all the Labour party has done is say that it will cancel £22 billion of business rates, without saying how it will replace those taxation receipts. Where is the money coming from?

[Bob Blackman (Harrow East) (Con)]

T4. The Secretary of State and the Prime Minister have both been in India recently and had the opportunity to negotiate further on the wonderful trade deal that we wish to do. Her predecessor but one or two promised a trade deal with India by Diwali. Of course, they did not mention which year. Diwali this year is later than normal; what confidence does she have that we will have it in place by Diwali this year?

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

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

[Kevin Hollinrake]

The hon. Lady raises an important point. That is why we launched a payment and cash flow review earlier this year, which is due to report very shortly. We are ambitious to make sure that small businesses get paid more quickly through putting more pressure on larger companies, the results of which will be announced very shortly.

[Dr Luke Evans (Bosworth) (Con)]

In August, I was lucky to be invited to the 70th anniversary of Caterpillar being founded in my constituency. It was the first place outside the US it set up a base in, and it now employs 1,300 people, making things such as the electric backhoe loader. Will my hon. Friend congratulate Caterpillar on its investment here, from where it exports across the world? Would she like to come and see exactly what it does in Bosworth?

[Judith Cummins (Bradford South) (Lab)]

T5. The loss of Wilko is devastating, in particular for the thousands of workers who will lose their livelihoods. Will the Secretary of State confirm that she will seek answers from Wilko management about why clear warnings were ignored and the business was driven into the ground, at the same time that shareholders collected hundreds of millions in dividends? Will she meet me and the GMB trade union to assure us that those basic failures will not be repeated?

[Kevin Hollinrake]

The hon. Member raises an important point. There is certainly, as part of the administration process, an obligation on the administrators to look at the circumstances that led to the demise of that company and report to the Insolvency Service. I am sure that she, like I, will be very interested in the outcome of that investigation.

[Theresa Villiers (Chipping Barnet) (Con)]

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

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

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

[Kevin Hollinrake]

The hon. Member raises an important point about the cost of living impact on businesses. These are global issues, not domestic issues, and she should be clear on that with her businesses. As I said in response to the question from her hon. Friend, the hon. Member for Edinburgh North and Leith (Deidre Brock), the Scottish Government might look at increasing the generosity of the business rates relief scheme, as the rest of the UK has.

[Peter Aldous (Waveney) (Con)]

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

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

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

[Kevin Hollinrake]

I am happy to engage with the hon. Member. I missed the earliest part of his question, but we are providing an awful lot of support for small businesses in various ways. I cannot remember his amendment to the Bill, but I am happy to engage with him to see what we can do to help.

[Andrew Selous (South West Bedfordshire) (Con)]

May we have an update on our proposals for a carbon border adjustment mechanism?

[Kevin Hollinrake]

The Treasury published a consultation in March on a range of measures to mitigate carbon leakage. Potential policies include a carbon adjustment mechanism on managing product standards. I am sure it will report shortly.

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

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

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

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

[Kevin Hollinrake]

The hon. Gentleman makes an important point, and we urge banks to listen to their customers about keeping their doors open. Of course, we have the banking framework relationship with the post office network, which provides deposit and cash facilities for small businesses on high streets in Denton and other parts of the country. We are determined to make that relationship more generous to the Post Office to ensure the sustainability of the post office network.

[Kerry McCarthy (Bristol East) (Lab)]

Over the recess, I had the pleasure of visiting the historic Harland & Wolff shipyard in north Devon, where we talked about the potential for UK shipbuilding jobs linked to the offshore renewables sector. Given last week’s disappointing auction round, to put it mildly, what can the Minister say to convince the shipbuilding industry that there is a future for it in making those service vessels?