Oral Answers to Questions

Kwasi Kwarteng Excerpts

Tuesday 9th February 2021 Commons Chamber

[Mr Speaker]

I call the Secretary of State—and congratulations.

[The Secretary of State for Business, Energy and Industrial Strategy (Kwasi Kwarteng)]

Thank you very much, Mr Speaker.

We announced at the spending review an investment of £14.6 billion in R&D for 2021-22. This will no doubt cement our status as a science superpower here in the UK. We are taking forward the ambitious commitments in the R&D road map, which was published only last year, and we are of course continuing co-operation with the EU through association with the Horizon Europe programme.

[Jack Lopresti [V]]

Apprentices have played a key role throughout this pandemic, including working on the Oxford-AstraZeneca vaccine, which is helping the country overcome this virus. Can my right hon. Friend confirm that, in National Apprenticeship Week, he will be working with and encouraging more R&D-based businesses to provide apprenticeship opportunities so that more young people can gain the skills they need to progress in this field?

[Kwasi Kwarteng]

Absolutely. I thank my hon. Friend for the great work he is doing as co-chair of the all-party parliamentary group on apprenticeships. He will know that apprenticeships are a key part of this Government’s plan for jobs as we build back better from the pandemic, and that is why we are offering employers cash payments of up to £2,000 when they hire a new apprentice, until 31 March this year.

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

We are all grateful to Britain’s world-leading scientists for blazing a trail of hope in this terrible pandemic, but how are Government protecting science’s future? Medical charity research is predicted to fall by over £4 billion after Government refused support. University research has only been offered loans to cover losses from international students, while 90% of UK researchers are excluded from support, even though the virus prevents them from finishing their research. Postgraduate research students from the nine doctoral training programmes have written to demand action, given the escalating scale of the crisis, and there is a massive reduction in funding for early career researchers. Why are Government not protecting the future of the science that is protecting us?

[Kwasi Kwarteng]

The hon. Lady seems to be living in a parallel universe. If we look at the vaccine roll-out—we have seen 12.3 million, or nearly 12.3 million, people vaccinated as of this morning—we can see that the strength of the UK science base is really impressive. It is looked on throughout the world as something to aspire to. We are a world-leading science power—a science superpower. I have already mentioned the £14.6 billion that we have committed to R&D, and this is an area where we are confident and world-beating.

[David Mundell (Dumfriesshire, Clydesdale and Tweeddale) (Con)]

What assessment his Department has made of the effect of the closure of post offices operated by CJ Lang & Son Ltd on the post office network in Scotland.

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[Patrick Grady (Glasgow North) (SNP)]

What discussions he has had with the Chancellor of the Exchequer on increasing support to businesses affected by the covid-19 outbreak.

[The Secretary of State for Business, Energy and Industrial Strategy (Kwasi Kwarteng)]

It is well known that we spent over £280 billion on an unprecedented package of support for businesses, including the job retention scheme, support grants and Government-backed loans. I speak regularly with my right hon. Friend the Chancellor of the Exchequer on all the support measures available for businesses, including in the next stage when we try to lead and help them through the pandemic and towards recovery.

[Jason McCartney [V]]

Hundreds of my local hospitality businesses are extremely grateful for the Government support grants they have received. As the success of the vaccine roll-out allows those businesses to start planning reopening, will my right hon. Friend continue to speak with the Chancellor about helping hospitality businesses, including the wedding industry, as they get back on their feet, perhaps by extending help with VAT and business rates?

[Kwasi Kwarteng]

As my hon. Friend knows, we speak all the time not only to my right hon. Friend the Chancellor of the Exchequer but to the sector; indeed, ministerial colleagues spoke to the sector just yesterday and I have dipped in on roundtables as well. We are very concerned about this; we fully recognise the great efforts my hon. Friend is making on behalf of his constituents, but we are in regular contact with our colleagues in the Treasury.

[David Linden]

Almost 24,000 retail, hospitality and leisure businesses in Scotland are currently supported by 100% rates relief. That support has been extended until the end of July, but the Scottish Government want to go further and Scottish businesses need us to go further. However, due to borrowing constraints placed on Scotland’s Parliament, the funding necessary to extend further can only come from the UK Government, so does the Secretary of State agree that his Government should step up and fund this relief for another year?

[Kwasi Kwarteng]

What I do agree with is the fact that we have extended an unprecedented range of support and measures. I am in regular contact with my right hon. Friend the Chancellor; he has taken a nimble approach, and I look forward to engaging with him on what further support we can supply.

[Selaine Saxby [V]]

The hospitality supply chain has remained open despite a significant loss of earnings to continue supplying the NHS and schools that have to be open. Here in North Devon, Philip Dennis and Savona delivered to people’s homes and operated pop-up click and collect venues when many vulnerable households struggled for supermarkets slots. However, these companies are not eligible for the same support as the hospitality businesses they normally service; will my right hon. Friend ensure that they have the support they need so they are still trading when our hospitality sector reopens?

[Kwasi Kwarteng]

As my hon. Friend knows, in January the Chancellor announced an additional £500 million in grant funding to local authorities for the additional restrictions; this discretionary funding enables local authorities to support businesses, including, as she pointed out, those in supply chains that have been adversely impacted by restrictions but are ineligible for other measures. This funding comes on top of the £1.1 billion allocated in November 2020.

[Allan Dorans [V]]

If the furlough scheme is not extended beyond April, Scotland, like the rest of the UK, will face mass unemployment, with the consequent damage to businesses, communities, families and the mental health of hundreds of thousands of people. Will the Secretary of State therefore urge the Chancellor to take urgent action to ensure that this is avoided by extending furlough?

[Kwasi Kwarteng]

I am absolutely mindful of the immense pressures our businesses right across the UK are suffering under at the moment. I am in regular contact with my right hon. Friend the Chancellor, who has acted in an unprecedented way; as I have said, he has put £280 billion into the economy to help our struggling businesses. But of course we are looking at the situation as it evolves, and we are very keen to help our economy through this.

[Joy Morrissey [V]]

May I congratulate my right hon. Friend again on his new position and on behalf of the 3,700 businesses across Beaconsfield that have benefited from the £200 million-worth of Government-backed loans since the start of the pandemic? Will he join me in paying tribute to Buckinghamshire Council for its excellent work in ensuring that businesses are supported during the pandemic, and confirm that he will continue to offer all the support he can to protect jobs and keep businesses afloat so that we can look to not only restart our economy but build back better from the pandemic?

[Kwasi Kwarteng]

Throughout this crisis, as I am sure my hon. Friend is aware, the Government have stood by businesses, as she mentioned, and worked tirelessly to protect people’s jobs and livelihoods across the entirety of our country. As we emerge from the pandemic, we will ensure that we seize the initiative, as she put it, to build back better, greener and faster from this pandemic.

[Patrick Grady]

Does the Secretary of State not accept that, if people who are excluded from support packages are forced to wind up their businesses and move to universal credit or social security, that is more costly to the Government and damaging to the economy in the long run? Surely it is better to bring the excluded in from the cold now than to pay the long-term costs of exclusion in the future.

[Kwasi Kwarteng]

I fully appreciate—this is our key message as a Government—that jobs and employment are a No. 1 priority. That is exactly why my right hon. Friend the Chancellor extended the furlough scheme. I am in constant conversation with him about how better to provide support for our economy under this distress.

[Edward Miliband (Doncaster North) (Lab)]

Businesses are facing a £50 billion bombshell in less than two months as Government support packages are due to end, and there is still no clarity about the future. The Secretary of State must realise that the Budget is too late. Businesses are making decisions now about their future and that of their workers. The CBI director general said a week ago:

“Businesses are currently completely in the dark when planning for the weeks and months ahead and this is hindering investment.”

The Secretary of State’s job is to stand up for our businesses, so can he explain to them why, yet again, they are being left completely in the dark?

[Kwasi Kwarteng]

What I will explain is the fact that, in four weeks in the job, I have seen 200 business leaders. I meet the BROs—the business representative organisations —constantly, and I am in constant dialogue with them to ensure that the Government provide the support. We have provided £280 billion so far, which is beyond any precedent that we have seen. We are in constant conversation not only with our stakeholders but with the Chancellor of the Exchequer.

[Edward Miliband]

Excuses are no substitute for a plan. Businesses need clarity and certainty, and they are not getting it from the Government. Let me turn to another critical issue facing them. We want them to succeed in our new trading relationship with the EU, but according to Make UK, 60% of manufacturers are experiencing disruption, the fashion industry says it faces “decimation”, and hauliers are warning of a permanent reduction in trade. What personal, tangible action is the Business Secretary taking to get a grip and deal with the mountains of red tape now facing our businesses?

[Kwasi Kwarteng]

Of course, Mr Speaker, you will remember that, ahead of the Brexit deal, we were told that there was never going to be a deal and that we were going to crash out with no deal. We were told all sorts of scare stories about what would happen with Brexit. I fully accept that there are issues on the border, and I fully accept that many of the business leaders I have spoken to have raised issues, but I think the situation is far better with a deal—ask Nissan in Sunderland—than was the case, certainly, only three months ago.

[Stephen Flynn (Aberdeen South) (SNP) [V]]

I have been listening closely, and so far the Secretary of State has failed to give a long-term commitment to the furlough scheme, he has failed to provide any certainty whatsoever on business rates, and he has failed to back support for the excluded. As was just referred to, businesses are not just dealing with the damage caused by the pandemic; they are also facing the chaos of Brexit. Exports from the UK to the EU are reportedly down by 68%, and just 10,000 out of 50,000 customs agents are in place. Can the Secretary of State confirm just how bad things need to be before his Government set aside their dogma and instead ask the EU for a grace period in order to protect Scottish businesses?

[Kwasi Kwarteng]

I remind the hon. Gentleman that the Brexit debate is over; he, for his own purposes, wants to rekindle this. The business leaders I have spoken to have been extremely grateful for the fact that we got a deal, which he and others opposed—they also predicted that we would not get one. We are moving forward with an active plan and active engagement with the economy. Some £280 billion has been proffered so far. That is a picture that he fails to recognise.

[Stephen Flynn]

It is probably helpful to advise the Secretary of State that in Scotland the Brexit debate is far from over—in fact, we are just getting started. But I will take it from his answer that there will not be any grace period for Scottish businesses. However, there is one area where I hope he can provide some positive news: in relation to the North sea transition deal. The perfect storm of the pandemic and price crashes has seen 12,000 jobs associated with the North sea go already—and sadly, more are expected to follow. Can the Secretary of State confirm that he still expects the deal to be signed by the end of March, as his predecessor stated in the House? Will he agree to meet me and my colleagues in the city to discuss this hugely important matter?

[Kwasi Kwarteng]

The hon. Gentleman is quite right. He will be courteous enough to acknowledge that, as Energy Minister, I was directly involved in the conversations ahead of the North sea transition deal. I was very much in favour of bringing forward the completion of the deal. I am hopeful that we can manage to reach a really good deal, in which the sector accepts the need for decarbonisation very quickly.

[Christine Jardine (Edinburgh West) (LD) [V]]

The UK is a key player in supporting the research happening in developing countries that will be essential to putting an end to the pandemic and allowing our businesses to recover. Is the Secretary of State aware of the devastating blow that overseas development aid cuts will be to businesses and could be to our position as a global science leader, sending a message that the UK is not a reliable partner in long-term science advancement and business across the world?

[Kwasi Kwarteng]

I do not accept that any change in overseas development aid money will undermine our position as a global science superpower. As I said earlier, the science community around the world has been extremely impressed with how we are proceeding with the vaccine roll-out and the great innovation that takes place in this country.

[Rachel Hopkins (Luton South) (Lab)]

What steps his Department is taking to support the hospitality industry during the covid-19 outbreak.

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[Justin Madders (Ellesmere Port and Neston) (Lab)]

What recent discussions he has had with representatives of the automotive sector on the adequacy of Government fiscal support for that sector.

[The Secretary of State for Business, Energy and Industrial Strategy (Kwasi Kwarteng)]

Since becoming Secretary of State, I have met a number of representatives of our highly successful automotive sector to discuss future opportunities for the UK and to emphasise our Government’s commitment to the continued growth of the sector.

[Justin Madders]

As the Secretary of State will know, a decision is due soon on whether a new vehicle will be built at Vauxhall Motors in Ellesmere Port. Does he agree that if the Government are truly ambitious about investment in the post-Brexit world, securing green growth and the levelling-up agenda, they will do everything in their power to make sure that we get the right decision for the Ellesmere Port plant?

[Kwasi Kwarteng]

I recognise the importance of the Ellesmere Port plant locally and fully appreciate the work that the hon. Gentleman has done to keep it open. I want to see its future secured. We are committed to ensuring that the UK continues to be one of the best global locations for automotive manufacturing. I am happy to meet the hon. Gentleman, should he wish, and I have met representatives from Vauxhall as well.

[Mrs Pauline Latham (Mid Derbyshire) (Con)]

What steps his Department is taking to help businesses support victims of domestic abuse.

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[Saqib Bhatti (Meriden) (Con)]

If he will make a statement on his departmental responsibilities.

[The Secretary of State for Business, Energy and Industrial Strategy (Kwasi Kwarteng)]

In my first four weeks as Secretary of State, I have met with more than 100 businesses —virtually, of course—up and down the country. I have been hugely impressed by the positivity, determination and sheer grit that our businesses have shown in spite of the immense challenges they are facing. I am pleased that we can now offer lateral flow testing to businesses with 50 or more employees, providing new support to small and medium-sized enterprises across the UK. As we have seen with the vaccine roll-out, it is thanks to our brilliant scientists and our brilliant science base that more than 12 million people have now received their first dose of a covid vaccine.

[Saqib Bhatti [V]]

In recent years, the Greater Birmingham and Solihull area has seen the setting up of the highest number of start-ups in the country outside London. Will my right hon. Friend set out his plans to support start-ups in my constituency of Meriden, so that they can continue to set up, thrive and survive after covid?

[Kwasi Kwarteng]

My hon. Friend is utterly committed to supporting growth and entrepreneurship in his area. I am fully aware that he was a director of business support for four years for the Greater Birmingham and Solihull local enterprise partnership. He will know that our Government continue to back growth and recovery across the UK. I think, in his own constituency of Meriden, we have done this through £90.9 million of covid loan scheme support.

[Lucy Powell (Manchester Central) (Lab/Co-op) [V]]

Well, I have listened to the Secretary of State’s answers so far, and I am afraid that he is all mouth and no trousers. Let’s try again, shall we? Businesses face a £50 billion bombshell in April, yet many in hospitality, retail and services will not even be open by then. Councils are sending out business rates bills as we speak and difficult decisions are being made now. Does the Minister agree personally with Labour’s plan to extend the business rates holiday for at least six months as well as the furlough while public health measures remain, in order to deal with this bombshell before it blows a big hole in our economy?

[Darren Henry (Broxtowe) (Con)]

With local authorities such as that in Broxtowe responsible for distributing grants to struggling businesses, will my hon. Friend tell me what flexibility can be provided to allow grants underspent in one area of business support to be used for support in other areas?

[Kwasi Kwarteng]

Local authorities, as my hon. Friend knows, receive funding to support closed businesses through grants of up to £3,000 for each four-week period of closure. In addition, closed businesses can receive up to an extra £9,000 as a one-off payment for the current period of national lockdown. Local authorities, as I am sure he is aware, are also in receipt of discretionary funding, sharing £1.6 billion of the additional restrictions grant.

[Dan Carden (Liverpool, Walton) (Lab)]

British Gas engineers and staff are key workers who, in addition to their responsibilities heating people’s homes, have been delivering food and essentials during the pandemic. Ministers have said that fire and rehire is unacceptable, so will the Secretary of State call on Centrica and Mr O’Shea to stop the bullying tactics of trying to force new contracts on to their workers cutting pay, terms and conditions, and ask them to get round the negotiating table with the union, GMB?

[Kwasi Kwarteng]

I am very pleased to announce that I and my ministerial colleagues have stated again and again that fire and rehire is completely unacceptable. I was in regular contact with British Gas—Centrica, as it is now called—as Energy Minister, and I have impressed upon it the need to engage with its workforce and treat them with utter integrity and fairness.

[Andrea Leadsom (South Northamptonshire) (Con)]

May I start by congratulating my right hon. Friend on his new job? I very much enjoyed working with him in what is now his Department, and I wish him well. I have constituents who run a very successful hotel business. They have appreciated all the support given to them by the Government, but they recognise that they are still using every last penny of their reserves to keep their golf course maintained, keep the swimming pool clean and keep the place secure, and they have no income. So can my right hon. Friend tell me, when they ask their bank, as they have, to provide them with rolled-over quarterly interest and the bank says, “We’ll do it, but we need to put you under forbearance”, is that a regulatory requirement or is it the bank making it even more difficult for them to recover once lockdown ends?

[Kwasi Kwarteng]

I am very pleased to be responding to my right hon. Friend. I very much enjoyed working with her in the Department and I am pleased that she is taking such an interest in our activities. In answer to her question, I would suggest that this is about policy, not regulation. The Government expect lenders to be constructive in their dealings with businesses in difficulty. I am glad to hear that in this instance her constituents are getting the support that they need from the bank, but bank regulations on forbearance are a matter for the independent Financial Conduct Authority.

[John Spellar (Warley) (Lab)]

When asset-stripper Melrose was allowed to take over GKN, the then Secretary of State said that Melrose had to honour its commitments to stay UK-based. Now that it has torn that up with its disgraceful behaviour and decision to close Birmingham’s GKN Driveline, with the loss of 500 skilled engineering jobs, what is the Secretary of State going to do about it?

[Kwasi Kwarteng]

As the right hon. Gentleman well knows, my door is always open, and I am very happy to meet him to discuss this issue. I recall that when my right hon. Friend the Member for Tunbridge Wells (Greg Clark) was in my place, it was a very delicate situation, but I am happy to discuss with the right hon. Gentleman ideas on how we can ameliorate it.

[Kevin Hollinrake (Thirsk and Malton) (Con) [V]]

I draw the House’s attention to my entry in the Register of Members’ Financial Interests. In my parliamentary work I have seen a number of examples of council landlords being unreasonable with tenants who are facing eviction or, potentially, insolvency when the right of forfeiture is restored on 31 March. Will my right hon. Friend set out his plans for this, but also send a message to local authorities that they should set a good example when it comes to helping businesses through this crisis?

[Carol Monaghan (Glasgow North West) (SNP) [V]]

Since the US imposed tariffs on single malt whisky, the loss of exports has cost the industry more than £500 million. Will the Secretary of State detail the discussions that have taken place with the new Administration and update the House on the progress of those talks?

[Kwasi Kwarteng]

The hon. Lady is absolutely right: we have to look after the interests of our whisky exporters. It is a key interest. I have spoken to Karen Betts I think twice in my first month precisely on that issue, and I am very hopeful that we can get it resolved.

[Marco Longhi (Dudley North) (Con) [V]]

  Vaccinating our most vulnerable first, and as quickly as possible, is clearly the right strategy. My wife and I volunteered throughout the weekend and witnessed an amazing effort at the Black Country Living Museum, but does my right hon. Friend agree that having secured 400 million doses nationally puts us in a strong position to save the most lives and will, with workplace testing, save our economy from a longer recovery period?

[Kwasi Kwarteng]

Dare I say it, that was an excellent question, which goes to the heart of what this whole period has taught us. The fact that we managed to procure, develop and distribute so many vaccines has been a great story for not only our science base, but UK innovation. I am sure that it will be studied in years, even decades, to come. Finally, my hon. Friend is absolutely right to say that the surest way of helping our businesses is to ensure that we can reopen our economy in a safe way.

[Julie Elliott (Sunderland Central) (Lab) [V]]

Hand hygiene and mask wearing are most effective when accompanied by surface disinfection, especially in shared work spaces. Recent changes to the Health and Safety Executive guidance are welcome, but the Secretary of State’s Department’s guidance needs to be radically updated to provide specific guidance on the EN standard of disinfectants needed, and on the frequency of surface disinfection. Can he commit to doing that as a matter of urgency?

[Caroline Ansell (Eastbourne) (Con) [V]]

The Government have provided life support to the hospitality sector, but my hoteliers are flagging that we are moving into a potential perfect storm of deferred payments coming into focus and the support scheme set to close. The weekend’s announcement on bounce-back loans has been met with huge relief in my constituency for the 1,800 businesses that are in that place. I ask the Minister to look also at extending the 5% VAT rate, furlough and the business rates holiday, so that the hospitality sector in my constituency of Eastbourne, and across the country, can come back all the stronger.

[Kwasi Kwarteng]

My hon. Friend is right, and I fully appreciate how key the hospitality sector is to her constituency of Eastbourne, which I have visited many times, even before I was elected to this place. The Government have introduced pay as you go measures, as I am sure she is aware, which give borrowers flexibility when repaying their bounce-back loans. In terms of the other measures that she mentions, I am in constant dialogue with the Chancellor. We are looking at the economy and the situation as it evolves daily—minute by minute, almost—and we hope that we can provide the flexible support that we have in the last year.

[Dan Jarvis (Barnsley Central) (Lab) [V]]

Here in South Yorkshire, we used the local growth fund to create 2,800 jobs and attract £92 million of investment from world-leading businesses such as Boeing and McLaren. Now that funding has ended, will the Secretary of State work with us on our plan to create 6,000 new jobs and attract £600 million of investment over the next two years? [R]

[Kwasi Kwarteng]

I am absolutely open and prepared to work with the hon. Member. I have visited him in my capacity as Under-Secretary of State in the Department for Exiting the European Union. I think we also met when I was Minister of State. I am very happy to work with him and discuss his ideas about regeneration and growth.

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

The Climate Change Committee says that the UK’s contribution to international aviation and shipping emissions should be included in our carbon budgets. As hosts of COP 26 later this year, would this not be a good time to set an example to the international community by doing so?

[Kwasi Kwarteng]

I am absolutely aware of that issue. It is almost inevitable that we will be asked by the CCC to include those contributions in our budgets. As COP26 hosts, we will obviously want to hold ourselves to the highest standards, in terms of carbon emissions.

[Mr Speaker]

I am suspending the House for a few minutes to enable the necessary arrangements for the next business to be made.