Draft National Minimum Wage (Amendment) Regulations 2023

Kevin Hollinrake Excerpts

Monday 6th March 2023 General Committees

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

I beg to move,

That the Committee has considered the draft National Minimum Wage (Amendment) Regulations 2023.

It is a pleasure to speak with you in the Chair, Mr Hollobone. The regulations will raise the national living wage and the national minimum wage on 1 April 2023. We remain proud of the strength of the UK labour market. There are now 1 million more people on payrolls compared with pre-pandemic levels, and demand for workers remains close to record levels. However, we recognise the continued impact of the cost of living pressures, which is why the Government have taken, and will continue to take, robust action to protect the most vulnerable in society.

The national living wage and the national minimum wage act to put more money in the pockets of the lowest-paid workers. This year will be no different, with the largest cash increase in the 24-year history of the minimum wage. We are also increasing benefit payments by 10.1%, in line with September’s consumer prices index inflation rate. Almost 12 million pensioners will benefit from the triple lock, as the state pension will also increase by 10.1%.

Our package of measures includes the energy price guarantee, which has saved a typical UK household around £900 since its introduction in October, and a series of cost of living payments worth hundreds of pounds for millions of eligible households on a means-tested basis. Our commitment to a high-skilled, high-productivity, high-wage economy will further address the cost of living, as well as level up every part of the UK and hasten the transition to net zero.

The regulations will increase the national living wage and national minimum wage rates and will come into force on 1 April. Following a comprehensive impact assessment, we estimate that they will give a pay rise to 2.9 million workers across the United Kingdom. I am pleased to confirm that the Government have accepted all the rate recommendations made by the Low Pay Commission in October. I place on the record my gratitude to the commission; I also gave my thanks personally in a meeting last week. As ever, it has worked tirelessly to bring together the views of business and worker stakeholders and remaining informed by expert research and analysis.

The regulations will increase the national living wage for those aged 23 or over by 9.7% to £10.42 an hour, which is an increase of 92p. After this year’s rise, the national living wage will have increased more than twice as fast as inflation since its introduction. The regulations will also increase the national minimum wage rates for younger workers and apprentices, as well as the accommodation offset. Workers aged 21 and 22 will receive an increase of £1, or 10.9%, to a minimum hourly rate of £10.18. Workers aged between 18 and 20 will now be entitled to an extra 66p an hour, taking their rate to £7.49, while the rate for under 18s will reach £5.28, which is a rise of 47p an hour. Those changes represent an increase of 9.7%.

Apprentices aged under 19 or those in the first year of their apprenticeship will also receive an increase of 9.7%, as their rate rises from £4.81 to £5.28. Meanwhile, the accommodation offset, which is the maximum daily amount that an employer can charge a worker for accommodation without it affecting their pay for minimum wage purposes, will increase by 4.6%, from £8.70 to £9.10.

The Government have continued to take action to fulfil their manifesto commitment to enhance the rights of workers and support people to stay in work. We are backing six private Members’ Bills in this Session to deliver on our commitments. Once passed, those measures will ensure that all tips, gratuities and service charges are allocated to workers; create a statutory entitlement to neonatal care leave for workers with caring responsibilities; protect workers from redundancy during or after maternity; and grant workers the right to request flexible working from day one.

[Andy McDonald (Middlesbrough) (Lab)]

On the right to request flexible working, what happens when the employer says no?

[Kevin Hollinrake]

The employer can say no when they have considered the request properly, and they need to set out their reasons. It is important to note that there are eight different business reasons. We want to ensure that businesses can also cope with the six new key measures, as well as the £2.5 billion of extra cost for business organisations throughout the country, of the national living wage increases. We want to ensure that any burdens that we place on businesses are proportionate, and a right to request delivers that balance.

[Andy McDonald]

If the answer is no because the business is exempt through the various ways to get out of it, what is the cost?

[Kevin Hollinrake]

I do not quite follow the hon. Gentleman, but according to our research 83% of flexible working requests are granted. The right to request flexible working, which is not related to the regulations, creates the opportunity for a conversation between an employer and worker about flexible working. That is its purpose. I understand that the hon. Gentleman would want to put a burden on business—I suppose he is saying there should be a right to insist—but we think that would go too far.

We are also looking to grant workers, including agency workers, the right to request more predictable terms and conditions of work. The private Members’ Bills will further strengthen our flexible and dynamic labour market and ensure that businesses have the confidence to create jobs and invest in their workforce, which will allow them to generate long-term prosperity and growth.

The Government set the ambitious target for the national living wage to equal two thirds of median earnings by 2024, provided that economic conditions allow. We remain committed to that target, and this year’s increases keep us on course to reach it. We also aim to further reduce the age threshold for the national living wage so that it will apply to those aged 21 and over by 2024.

We recognise that this is a difficult time for many businesses, workers and consumers, and we know that sustainable rises in the minimum wage rates depend on the wider economy. In making its recommendations, the Low Pay Commission will continue to take the wider picture into account, alongside extensive stakeholder engagement. I thank the commission for making additional recommendations relating to the accommodation offset in its recent report. We are considering them carefully and will respond in due course.

The regulations aim to protect the lowest-paid workers across all sectors and regions and reward them for their contribution to our economy. I commend them to the Committee.

--- Later in debate ---

[Kevin Hollinrake]

I thank hon. Members for their valuable contributions during today’s debate. As has been pointed out, these rises are more important than ever in the context of the continued high inflation and cost of living pressures. I am glad to see cross-party agreement—largely—on the issue.

A number of points were raised, principally by the shadow Minister, the hon. Member for Ellesmere Port and Neston. When the Low Pay Commission made the recommendation of 9.7%, which we fully accepted, inflation was at 8.9%, so the rise was greater in most cases than inflation at the time. As the hon Member for Ellesmere Port and Neston knows, this Government are committed to halving inflation by the end of the year, so lots of people who received those high pay increases, in percentage terms, will benefit even more as a result of reduced inflation and a growing economy. Creating more jobs is very important and eventually leads to high wages, as my hon. Friend the Member for Basildon and Billericay pointed out.

[Justin Madders]

I am grateful to the Minister for explaining that the Low Pay Commission recommended an above-inflation pay rate. We often hear from Ministers that one reason that they cannot accede to pay demands from various public sector unions is that anything approaching the inflation rate would boost inflation even higher. Does that not apply in this situation?

[Kevin Hollinrake]

No, because this applies to a much smaller cohort. If the hon. Gentleman is proposing that we pay everyone across the public sector an inflation pay increase, which I guess he is from his comment, he has to explain to the taxpayer how we will raise that £28 billion a year, because that is what it would cost. Obviously, the Low Pay Commission works with employer groups, but it also works with business groups, other stakeholders and other employers to try to strike a balance between what is affordable for employers and what is an appropriate rise for those at the bottom of the income scales.

The hon. Gentleman asked about our ambition to get to two thirds of the median salary by 2024. That is certainly what we believe to be attainable, and it remains our target. With the growing economy that we expect to see by the end of the year, the economic context will be a lot brighter than it has been over the last few months.

On age limits, the hon. Gentleman is right; our ambition is to lower the age limit in terms of access to the national living wage, as we did from 25 to 23 in 2021, based on the Low Pay Commission’s recommendation. We are hoping to lower it to 21 by 2024. Part of the reason that it is lower—other Members asked the same question—is that there is no doubt that there is a greater vulnerability for young people. Unemployment levels tend to be higher in these lower age groups and it is important that we do not price people of low age out of the market. That is probably why Labour had different rates for 18 to 21-year-olds when it introduced some of these provisions when it was in government.

Let me turn to zero-hours contracts. Only 3% of the population is on a zero-hours contract. Sixty-four per cent. of those people do not want more hours, so the contracts kind of work for both sides, but we recognise that there is an issue with exploitation in some situations and we are trying to create the conditions for a conversation between employers and employees while not putting too great a burden on employers. That is why we are legislating for a right to request predictable hours. We have already legislated for things such as exclusivity clauses, which are not allowed for zero-hours contracts. For those below the lower-earnings limit, there cannot be an exclusivity clause in a zero-hours contract.

On compliance, the hon. Gentleman was absolutely right. It is very important to us, which is why we have doubled enforcement since 2015. I have met His Majesty’s Revenue and Customs team to discuss that. I welcome the fact that they have put £100 million back in the pockets of lower-income workers since 2015 through their excellent work. The care sector is one of the sectors they look at all the time, and there was no differential between it and any other sector. As far as employment law is concerned, travel time to appointments should be covered within employment law when it comes to calculating the national minimum wage or national living wage.

We believe that internships should be paid positions and should be subject to the national minimum wage or national living wage, and that trial shifts should be no more than a few hours.

[Andy McDonald]

I did not quite catch what the Minister said about travel time. Is he saying that care workers should be paid the same hourly rate when they are travelling between domiciliary appointments—paid at the full rate, effectively? Is that his position?

[Kevin Hollinrake]

Travel to appointments certainly should be calculated under national minimum wage levels. That is our position under employment regulations.

The hon. Member for Ellesmere Port and Neston was right to point out that we have not named and shamed for some time. I am very keen—I have had conversations about it today—to do that as soon as possible. We hope to have some news very shortly about a list of people who have not adhered to our national living wage requirements.

We are still looking at the best way to create a single enforcement body and whether it is right to do so given parliamentary time. We also do not want to increase the costs of enforcement. I work closely with the director of labour market enforcement to ensure that she has all the measures at her disposal and that there are no gaps in enforcement between different areas.

My hon. Friend the Member for Basildon and Billericay is right that research and development leads to higher productivity, higher wages and higher growth. I support that 100%. He was the only speaker other than me to point out the cost to business of these measures, and it is disappointing that the contributions of Opposition Members did not point out that business has to bear this cost, which is about £2.5 billion for employers annually. He also raised the very important point about corporation tax. Under the new rules, 70% of businesses will not pay additional corporation tax, because there is a small profits rate. Indeed, in my 30 years in business, when corporation tax was at similar levels, I cannot think of a time when our boardroom considered not investing. Given a higher level of corporation tax than we see today, we still felt that we could invest. I understand my hon. Friend’s points, and I am sure that he will make them to the relevant Department, which is of course the Treasury.

The hon. Member for Glasgow North talked about whether the rise is sufficient for low-paid workers, and I understand his point. I urge him, as I said before, also to consider employers in this conversation. We have to ensure that we do not raise the national living wage too quickly, which would cause problems for employers. That could be detrimental to the labour market generally and could have difficult consequences for some people who work in these kinds of jobs.

I am a big fan of the Living Wage Foundation, and it is absolutely right that we want the national living wage to increase. The gap between the Living Wage Foundation level and the national living wage is narrowing, and the Living Wage Foundation has always been keen to point out that its campaign for the national living wage is about trying to encourage employers to pay higher wages on a voluntary rather than a coercive basis.

From April, a full-time worker on the national living wage will earn over £6,700 more before tax than in 2015, when the policy was introduced, while younger workers and apprentices will also benefit from large rate increases across the board. This package of measures will have a huge, positive impact on the lives of millions of people. It should also serve as a reminder of the progress that can be made when Members across this House work together. I commend the regulations to the Committee.

Question put and agreed to.

Resolved,

That the Committee has considered the draft National Minimum Wage (Amendment) Regulations 2023.

Employment Relations (Flexible Working) Bill

Kevin Hollinrake Excerpts

3rd reading
Friday 24th February 2023 Commons Chamber

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

I thank the shadow Minister for her very positive comments at the end of her remarks. I shall pick up one or two of the other points, if I can, as I go through my remarks.

First, let me thank the hon. Member for Bolton South East (Yasmin Qureshi) for all her hard work and engagement in bringing forward this important legislation at this time. It has been a pleasure to work with her. It is always a pleasure and an honour to introduce a private Member’s Bill. I have had that opportunity twice—both were successful—in my career as a Back Bencher. I know that she will feel a great deal of pride at today’s events.

The Government have been very pleased to support the Employment Relations (Flexible Working) Bill through its various stages, and, of course, that will continue today. It has been heartening to observe the support for the Bill across the House, and I was pleased to hear that reflected in this debate.

The ability to vary the time, hours and place of work is an important element of the flexible labour market in Great Britain. Having access to flexible working arrangements enables employees to participate in the labour market in a way that suits their circumstances. Indeed, it brings people back into the workplace. Let me illustrate that point. There are more than 8 million people working part-time in the UK. For many of those people, such flexibility is a need rather than a choice.

The shadow Minister raised the fact that we want to attract more women back into the workplace, and I absolutely support that aim. I reiterate that this is one of six private Members’ Bills that the Government are supporting and those include some very important other measures, such as carer’s leave, neonatal leave, and pregnancy and return to work protections, to make sure that women feel more comfortable and protected in the workplace.

Crucially, for businesses, this Bill supports a diverse range of work arrangements, which can be key in retaining people and keeping them productive. We know that one key challenge for business is finding and retaining the right people. Crucially, the Bill provides a right to request, not a right to insist. I, too, was a little confused about Labour’s position, because the Bill provides a right to request, which is a right to be granted flexible working subject to reasonable measures; there are eight grounds on which a request could be refused. Crucially—I was pleased that my Conservative colleagues were keen to point this out—this is not a right to impose flexible working on businesses, as that would be the wrong thing to do. We know that there are many burdens on businesses at the moment, not least some of the challenges associated with the cost of living, and adding further burdens would be a mistake if they would be an imposition.

The post-implementation review of the Flexible Working Regulations 2014 found that employers have seen improvements in staff motivation and employee relations because of flexible working. That point was made clearly by the hon. Member for Bolton South East. Reduced absenteeism and lower staff turnover was also found. Research indicates that flexible working can unlock opportunities for growth and, indeed, access to the station platform, as was pointed out by my hon. Friend the Member for Buckingham (Greg Smith). It suggests that in the absence of suitable working hours or locations, groups of people are not employed, have retired early or are working below their potential. Some 500,000 people of working age have left the workplace since the start of the pandemic and it is crucial that we bring them back into the workplace, as was mentioned by the hon. Member for Bolton South East and by my hon. Friend the Member for Orpington (Gareth Bacon). He rightly pointed out that the costs and burdens of these measures are relatively limited, at about £2 million. It is always right to look at the cost to business of these kinds of measures.

These measures are supported by a recent Office for National Statistics study, which showed flexible working hours to be the most important factor in determining whether older workers who have left the workplace since the start of the pandemic will return to the labour market. Again, that point was made succinctly by my hon. Friends the Members for Aylesbury (Rob Butler) and for Newcastle-under-Lyme (Aaron Bell), who talked about a lady of 82 returning to the workplace, which was very impressive. Sadly, my mum passed away when she was 84, but she was proud to work every single day until then. He also talked about the stores of wisdom of people who have left the workplace but whom we are trying to attract back into it, and I could not agree more with that position.

From running my own business, I know that accommodating a particular working pattern can often be the difference between losing and retaining a valued member of staff. The right to request flexible working is very good enabling legislation. It acknowledges that there is no one-size-fits-all approach to working arrangements, as was pointed out by my hon. Friend the Member for Stoke-on-Trent Central (Jo Gideon). It is designed to help employees and employers find arrangements that work for both sides, and it is functioning well. The post-implementation review of the legislation found that in 83% of workplaces where a request is made the request is granted, with only 9% of workplaces reporting turning down such a request. That is why our 2019 manifesto committed to consult on ways to improve access to flexible working. That consultation was primarily focused on adjustments to the right to request flexible working. We published our response to that consultation at the end of last year and I am pleased that the measures in this Bill reflect what we set out in our response; most importantly, this becomes a day one right. I wish to pick up on the comments made by my hon. Friend the Member for Watford (Dean Russell), who did such fine work in Committee and as my predecessor in this role. That day one right did not come as a result of the amendment, which was withdrawn in Committee; we made the commitment, in consultation, that that was our intention and it was what we confirmed later that week.

These important changes will facilitate better access to all forms of flexible working, whether it relates to when, where or how people work. My hon. Friend the Member for Buckingham and the shadow Minister both mentioned the importance of childcare to getting people back to work. One note of caution, of course, is that childcare is very expensive for the taxpayer, around £3.5 billion a year. We would all like to expand childcare provision, but all hon. Members, certainly on my side of the political divide, are keen to ensure that taxpayers’ money is spent wisely.

[Greg Smith]

I reassure the Minister that my point was less about needing more taxpayer subsidy than about ensuring that all employers are aware of the needs of working parents so that their businesses and enterprises are able to gain their skillset, for their own good and that of the wider economy, by allowing them to work flexible hours.

[Kevin Hollinrake]

My hon. Friend makes a very good point, and I agree entirely. As an employer, we were very keen to get people back to the workplace who had gone off on maternity leave, and we would be as flexible as possible in facilitating that. I think all good employers do, as indicated by the fact that 83% of employers agree to requests for flexible working.

The consultation requirements will mean that employers and employees are encouraged to have a broad conversation about what flexible working arrangements may be workable. This will avoid the scenario in which an employer rejects a specific request out of hand, as my hon. Friend the Member for Watford explained very well.

My hon. Friend the Member for Bury North (James Daly) asked what “consultation” means, which is a good question. ACAS will update its code of practice to make sure that employers are clear on the requirements. The current code of practice requires only a discussion, which could be over the telephone or face to face, and the update will explain what it means in practice.

Allowing employees to make two statutory requests in 12 months will mean that legislation is better able to respond to changing needs and requirements; reducing the timeframe within which employers must respond to requests will speed up the whole process; and removing the requirement for an employee to set out the impact of their requested change will level the playing field and remove red tape from the process.

I thank my predecessors, my hon. Friends the Members for Watford, for Loughborough (Jane Hunt) and for Sutton and Cheam (Paul Scully). I also thank the civil servants in my private office who do such a fine job and who have done so much legislation in recent weeks and months with such great care and expertise: Matthew Wootton, Tony Mulcahy, Roxana Bakharia, Jayne McCann, Ana Pollard, Bryan Halka, Dan Spillman and Cora Sweet.

Supporting this Bill is in line with the Government’s ongoing commitment to building a strong and flexible labour market that supports participation and economic growth. Our 2019 Conservative manifesto committed to encouraging flexible working, and this Bill is a positive development for individuals and businesses alike. I wholly support the passage of this Bill as it moves to the other place, and I commend it to the House.

Draft Radio Equipment (Amendment) (Northern Ireland) Regulations 2023

Kevin Hollinrake Excerpts

Wednesday 22nd February 2023 General Committees

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

I beg to move,

That the Committee has considered the draft Radio Equipment (Amendment) (Northern Ireland) Regulations 2023.

It is a pleasure to serve under your chairmanship, Dame Maria. The purpose of the instrument is to give effect to Commission delegated regulation (EU) 2019/320 in Northern Ireland and enable it to be legally enforced. The radio equipment directive is an EU directive that requires that radio equipment placed on to the EU market or put into service in the EU must meet specified essential requirements. The directive also allows the Commission to put additional essential requirements on manufacturers of radio equipment.

Radio equipment is defined as any electrical product that emits or receives radio waves for the purposes of radio communication. That includes products such as mobile phones and smartphones. The UK’s Radio Equipment Regulations 2017 implemented the radio equipment directive in UK law, and they have been amended to reflect the fact that we have left the European Union. The Radio Equipment Regulations 2017 apply across the UK, but some of the provisions apply differently in Northern Ireland because, as we know, it remains subject to EU law for radio equipment under the terms of the Northern Ireland protocol.

In December 2018, the Commission issued delegated regulation (EU) 2019/320, which added to the essential requirements in the directive and required that smartphones must be able to transmit their location data in calls to emergency services. The instrument will therefore put in place the additional requirement for smartphones, as required under the delegated regulation in Northern Ireland, and enable it to be legally enforced there. The amendment is required under the terms of the protocol.

I will explain what the SI does in more detail. It adds the caller location requirements of EU regulation 2019/320 to the essential requirements in the Radio Equipment Regulations 2017 as they apply to Northern Ireland. The essential requirements set the overall objectives for how radio equipment must be constructed before it can be placed on the market. Because the SI adds to the essential requirements, it extends the scope of an existing offence in the Radio Equipment Regulations for manufacturers in relation to non-compliance with the essential requirements when placing products on the market.

Failure to comply with the new regulatory requirement will be a criminal offence in Northern Ireland. However, we envisage that it will be only in very rare circumstances. Enforcement authorities will continue to take a proportionate approach to compliance and enforcement activities. They will prioritise working with businesses to help them understand their obligations and support them to comply.

The European Commission’s assessment in its explanatory memorandum published in 2018 was that a technical solution incorporating global navigation satellite systems, or GNSS, and wi-fi signal-based information has already been anticipated by the market, and is now available in over 95% of all smartphones. The Commission’s assessment was that the impact on smartphone manufacturers was therefore anticipated to be minimal, as nearly all new smartphones have the required capability. The EU Commission engaged with industry during the development of the regulation. It has been adopted by the EU since 2019, and we are not aware of any concerns from smartphone manufacturers in relation to these regulations.

My excellent officials in the Office for Product Safety and Standards will be providing online industry guidance to ensure businesses have all the information they need on how to comply with the regulations. They are also liaising with the Northern Ireland district councils that are responsible for enforcing the Radio Equipment Regulations there, and ensuring they have all the necessary information to do so.

We are not currently considering introducing a similar requirement for Great Britain, for two main reasons. First, as the European Commission’s assessment for the regulation shows, nearly all new smartphones currently on the market already have the technical capabilities that it requires. Given the existing widespread adoption, we see no reason to mandate this requirement through legislation. Secondly, now that we have left the European Union, we will make our decisions on product safety regulations based on what is in the best interests of the UK.

We note that the Commission’s policy for this regulation is to provide better information to the EU’s emergency services and to promote the EU’s global navigation satellite system. Given that, we do not think there are strong policy reasons for implementing this change across Great Britain, but we will keep this position under review.

The UK is required to implement this regulation in Northern Ireland under the current terms of the Northern Ireland protocol. The SI does that by amending the UK’s Radio Equipment Regulations 2017 and enabling it to be legally enforced, so I urge the Committee to approve the SI.

--- Later in debate ---

[Chi Onwurah]

I am glad to see that the hon. Member for Lichfield is as amusing as he always is—even if he is not as accurate as he should be.

The debate has been much livelier than was anticipated—

[Kevin Hollinrake]

And longer.

--- Later in debate ---

[Kevin Hollinrake]

I will try to go through the points raised as quickly as possible. The hon. Member for Newcastle upon Tyne Central asked whether Government Members consider “regulation” to be a dirty word. The answer is absolutely not. What we do believe, though, is that we should regulate and intervene in markets only when absolutely necessary. That is our position. The rest of the time, the best thing we can do for consumers is allow business to deliver solutions. Competition is the best thing for consumers.

On the incremental increase in cost and the 95% to 100%, I do not know the figure.

I am happy to speak to the OPSS to see whether we have a number. Of course we will keep it under review, as I said in my opening speech.

The principal point raised by the hon. Lady related to resilience, and my hon. Friend the Member for Lichfield also made some points. In addition to the EU’s Galileo system, the other main global navigation satellite systems are the United States global positioning system, Russia’s GLONASS and China’s BeiDou navigation satellite system—GNSS is a generic term—so there is resilience. Whenever we in this place are spending taxpayers’ money or deciding whether we should do so, we need to be very careful. Any duplication of spend is an unnecessary and inappropriate way of spending taxpayers’ money. We believe that there is resilience in the system and that manufacturers are already providing a solution in terms of the 95% already covered.

The hon. Member for Newcastle upon Tyne Central asked why this has been delayed. She will have noticed that quite a lot of legislation has been brought to this place over the past few years, and there are other factors, not least parliamentary drafting time, that have delayed some of the issues we would like to bring forward. But we are here now—that is the important thing.

To respond to the hon. Member for Weaver Vale, the maximum penalty is three months in jail. He asked about exceptional circumstances. This is about consumer detriment and I think that those are the kinds of serious concerns that could be raised. As I have said, we expect enforcement agencies to deal with those in a proportionate manner. It is very difficult to specify the exact situations in which a case may be brought forward, but I think that such cases would be very serious and very rare and that they would relate to consumer detriment.

If the hon. Member for Newcastle upon Tyne Central does not mind, I will not be drawn on the Northern Ireland protocol, other than to say that we need to make sure that we maintain the delicate political balance in Northern Ireland, about which there are concerns, as she knows.

[Chi Onwurah]

Will the Minister give way?

--- Later in debate ---

[Kevin Hollinrake]

I will not, because I am going to conclude.

I thank the Committee for its consideration of this SI and the very valuable contributions to the debate. I commend the SI to the Committee.

Question put and agreed to.

Oral Answers to Questions

Kevin Hollinrake Excerpts

Thursday 9th February 2023 Commons Chamber

[Mrs Sheryll Murray (South East Cornwall) (Con)]

4. What recent progress her Department has made on tackling export barriers for food and farming businesses.

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

May I also pay tribute to you for the way that you welcomed President Zelensky here yesterday, Mr Speaker? The occasion made us even more proud to be British.

Over the financial year up to March 2022, we did away with 192 barriers across 79 countries, including by opening up markets for UK poultry meat in Japan, and for UK pork in Mexico—a market that will be worth £50 million to UK pork producers in the first five years of trade. Of course, Cornwall is home to fantastic British produce, such as Cornish yarg and clotted cream, which are promoted and recognised around the globe through the GREAT Britain and Northern Ireland campaign, and at home through our “Made in the UK, sold to the world” marketing strategy.

[Mrs Murray]

I have to mention Cornish blue and Cornish Gouda, which are made in my constituency. South East Cornwall farmers are rightly proud of their excellent produce. What more can the Department do to help these small businesses access the widest possible market?

[Kevin Hollinrake]

My hon. Friend is absolutely right: we should be very proud of the food and drink sector. It is our largest manufacturing sector—larger than automotive and aerospace put together. Our Export Academy delivers specialist food and drink modules to get companies started, and our Export Support Service can answer questions on export markets in Europe. Companies can access our network of international trade advisers across England, and the Department has teams in Scotland, Wales and Northern Ireland.

[Mr Speaker]

I call shadow Minister Dame Nia Griffith.

[Dame Nia Griffith (Llanelli) (Lab)]

It is over a year since the announcement of eight additional agrifood and drink attachés. Given that there was yet another gloomy report from the British Chambers of Commerce last month, which said that three quarters of SMEs anticipated zero or negative export growth this year, help is certainly needed. Will the Minister tell us what specialist training the attachés have completed on food and drink regulation in the relevant countries? How many UK SMEs have they helped to find new markets, and what is the value of any new exports that they have secured?

[Kevin Hollinrake]

I am very happy to engage with the hon. Lady on that question, which had a number of other questions within it. As she knows, we have staff in more than 100 markets, and are building our existing attaché roles in China, Japan and the Gulf region. The Government are placing eight new dedicated UK agriculture, food and drink attachés in growth markets such as the US, Canada, Africa, India, South America, Brazil and Mexico.

[Gerald Jones (Merthyr Tydfil and Rhymney) (Lab)]

5. What steps her Department is taking to help small and medium-sized businesses export products and services to new markets.

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

The Department is opening new markets and creating new opportunities for exporters by agreeing new trade agreements and tackling market access barriers in countries around the world. Indeed, recently a deal was struck, worth up to £20 million, that allows Welsh lamb exports to the US.

[Gerald Jones]

The 2019 Conservative manifesto committed to 80% of UK trade being done under free trade terms by the end of 2022. The Government have clearly failed in their commitment to deliver free trade agreements. Does the Minister believe that free trade deals with the USA and India would help more small and medium-sized businesses to export? If so, would he care to apologise to businesses for over-promising and under-delivering yet again when it comes to these deals?

[Kevin Hollinrake]

Trade agreements are clearly very important, which is why we have struck 71 agreements with countries around the world, as well as with the European Union. It would be a good thing if the Opposition were to support those free trade agreements. I just reassure the hon. Gentleman that trade with the EU, for example, is now at record levels. Last year, exports to the EU were £330 billion, compared to £298 billion in 2019.

[David Duguid (Banff and Buchan) (Con)]

Small and medium-sized businesses make up a large part of the huge food and drink export sector that the Minister has already discussed. Tomorrow, the Scotch whisky industry will announce full-year export results for 2022. Significant growth is expected, particularly in India, even with 150% tariffs. Will the Minister update the House on negotiations with India? Does he agree that a deal to reduce tariffs on Scotch whisky would be good not only for the distillers of Scotch whisky in Scotland but for the wider supply chain right across the UK?

[Kevin Hollinrake]

I know my hon. Friend is visiting one of his distilleries next week. I agree with him that opening new markets to our whisky exporters is one of the great opportunities open to us in a post-Brexit Britain. As he knows, whisky is one of the UK’s largest food and drink exports, with £4.6 billion in 2021. We have an ambitious programme of free trade agreement negotiations to break down barriers. We are now in our sixth round of negotiations with India this very week.

[Antony Higginbotham (Burnley) (Con)]

6. What steps her Department is taking to help secure more inward investment into the UK.

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[Gareth Bacon (Orpington) (Con)]

11. What recent discussions her Department has had with Metro Mayors on attracting more foreign direct investment.

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

I met Andy Street this week to talk about foreign direct investment, and Lord Johnson will meet the 10 Metro Mayors today and look to discuss how we can attract more investment into mayoral combined authorities and how the Department can connect strategic regional opportunities to major international capital, such as the sovereign investment partnerships that have been established over the past 18 months by the Department and the Office for Investment.

[Gareth Bacon]

I chair the all-party parliamentary group for London as a global city, and last year we published our first report, which featured analysis of the London-plus effect, a term coined by the London & Partners agency to show that our capital is the gateway to the world and that companies that first invest in London go on to contribute £7.6 billion and create 40,000 jobs throughout the country. Is my hon. Friend’s Department willing to consider convening roundtables with the Metro Mayors on how to maximise the potential benefit to the UK of the London-plus effect?

[Kevin Hollinrake]

My hon. Friend is absolutely right. Andy Street was very clear about the importance of London to regional development in the west midlands. The Department convenes roundtable joint sessions with the M10 Metro Mayors twice every year, in additional to ongoing ministerial-mayoral bilaterals and official-level engagement. Such meetings include the discussion of shared priorities in respect of international trade and investment and of greater collaboration throughout all regions to increase foreign direct investment from new and existing investors.

[Chris Elmore (Ogmore) (Lab)]

The Minister will know that there are no Metro Mayors in Wales, but there are city deals and leaders that link across the south-west of England into Bristol and across the south Wales belt. Will the Minister set out what he is doing to work with local government leaders in Wales to ensure that investment is brought into Welsh constituencies as well as those throughout England?

[Kevin Hollinrake]

The hon. Gentleman is absolutely right. We are pleased that across York and North Yorkshire we are about to get our own Metro Mayor; I am sure he is working hard to bring that kind of governance to his area too, because it clearly delivers opportunity right across the country. As he knows, the FDI stock in the UK is worth £2 trillion, which is the second highest amount in the world. I am sure the opportunities would be beneficial to the hon. Gentleman’s constituents should he strike that kind of deal.

[Mrs Emma Lewell-Buck (South Shields) (Lab)]

12. What recent progress she has made on a free trade agreement with the US.

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[Selaine Saxby (North Devon) (Con)]

16. What steps her Department is taking to help increase trade opportunities for the green industrial sector.

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

Green trade is a foundational building block of sustainable growth, helping to protect our environment and our energy security, and future-proof UK jobs. In the two years to October 2022, the Government have supported £20 billion of net zero-related inward investment to help grow our green industries.

[Selaine Saxby]

Does my hon. Friend agree that, if we drag our feet developing new renewable energy industries, foreign investment will go overseas?

[Kevin Hollinrake]

I agree with my hon. Friend and thank her for her incredible work on the Celtic sea initiative. I attended her reception in Parliament, which was very well attended indeed and very optimistic about the potential for the Celtic sea.

We know that the net zero transition will create new industries worth around $10 trillion to the global economy by 2050. We recognise that the international landscape is becoming increasingly competitive as a result, but we are not dragging our feet. Securing inward investment to the UK’s green economy is a top priority for the Government, and the Department will be working closely with the Department for Energy Security and Net Zero, UK Export Finance and the Office for Investment, using all the levers at our disposal to promote the UK offer overseas.

[Liz Twist (Blaydon) (Lab)]

18. What steps she is taking to support effective parliamentary scrutiny of new free trade agreements.

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[Mr Philip Hollobone (Kettering) (Con)]

T6.   Excitement is building in Kettering ahead of the visit by the Minister with responsibility for small business, my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake), to the North Northants Business Network on Friday 10 March. One hundred representatives from local small businesses are really keen to meet him. Will he be kind enough to give us a taster of the optimistic message that he will bring to small businesses in Kettering?

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

Excitement is also building in me ahead of my visit to Kettering. I am a proud champion of small businesses, which, as we all know, are the engine room of growth in our economy. That growth has been good over the past 12 years—the third fastest in the G7—but we want it to be faster. I am very keen to engage with my hon. Friend to see how we can help small and medium-sized enterprises to do that.

[Liz Twist (Blaydon) (Lab)]

T2.   Now that the Trade Remedies Authority has been in operation for almost two years and has produced its decision, can the Minister tell me what plans there are, if any, to review how it operates and the guidelines to which it works?

[Antony Higginbotham (Burnley) (Con)]

T7. It is brilliant to see that state-level memorandums of understanding are being signed in the US, but with only three so far, it is clear that we can go further to cement that important trading relationship. What progress are we making with other states, and when can we expect further MOUs to be signed?

[Kevin Hollinrake]

Absolutely. We have agreed MOUs with Indiana, North Carolina and, most recently, South Carolina, as my hon. Friend sets out. We are actively engaging with other states, including Oklahoma, Utah, Texas and California, and I look forward to updating the House on further progress.

[Kate Osamor (Edmonton) (Lab/Co-op)]

T3. I understand that the Government are set to undertake a second round of trade negotiations with Israel in the spring. Israel applies our current agreement to the Occupied Palestinian Territories, against the EU negotiator’s original intentions. Have the Government considered how they will go about preventing any repeat of that situation and preventing illegal settlements from benefiting from the prospective deal?

[Greg Smith (Buckingham) (Con)]

The global dairy market is forecast to be growing in the region of 2%, so can my hon. Friend outline what steps his Department is taking to ensure that our world-class British dairy products are at the front of the queue to benefit from that growth?

[Kevin Hollinrake]

My hon. Friend is absolutely right. As I said earlier, food and drink is our largest manufacturing sector—larger than aerospace and automotive put together. He is right to point out the opportunities for dairy in our free-trade negotiations, and that will be taken forward as the negotiations progress.

[Mrs Emma Lewell-Buck (South Shields) (Lab)]

T5.   Banks and insurers are using environmental, social and governance criteria to block companies that work in the defence industry, stifling jobs, skills, innovation and UK exports. Why have the Government done nothing about that?