EU Trading Relationship

Liam Byrne Excerpts

Thursday 24th April 2025 Westminster Hall

[Liam Byrne (Birmingham Hodge Hill and Solihull North) (Lab)]

I congratulate my hon. Friend the Member for Welwyn Hatfield (Andrew Lewin) on securing this debate, on his superb speech and on the impact that he has made in this House.

We are all history’s witnesses to a radical reshaping of the western alliance. Yesterday, the United States Treasury Secretary said:

“‘America First’ does not mean America alone.”

But if we look beyond the rhetoric to the reality, it is very clear that what Churchill called the sinews of peace are now under tremendous strain. America is now exiting the multilateral alliances that it created under Presidents Roosevelt, Truman and Eisenhower between 1944 and 1960. What some have called Amexit must now force us to rethink Brexit. We have to look again at resetting our alliance with our closest neighbour.

I draw the House’s attention to the draft Green Paper that we think the Government should have published: the report published by the Business and Trade Committee on 4 April, which sets out 20 ways in which we think we can reset our relationship with our closest neighbour, spanning defence, regulation, energy co-operation, services and innovation. There are 20 measures across that space that could give us as big an economic boost as is needed to offset the cut from tariffs. They include an EU-UK defence pact, a shared industrial policy, a joint plan to defend critical national infrastructure and deeper co-operation to defend ourselves against economic threats; an ambitious sanitary and phytosanitary agreement, the mutual recognition of customs schemes and of conformity assessments, streamlining customs declarations at the border, enhancing co-operation at our ports and rejoining the pan-Euro-Mediterranean convention; and making sure that we have long-term regulatory road maps to maximise the alignment between sectors in our economy and in the EU. We found that there is widespread support for that across the business community in the UK, and in the European Union too.

The fourth big area is energy, which is one of the biggest opportunities for deeper co-operation between the UK and the EU. We need to avoid the cliff edge that may come when the carbon border adjustment mechanism is introduced in this country and Europe. We should join together to create a single CBAM. We should be linking our emissions trading schemes and reconnecting our electricity markets because that will ultimately help to drive down electricity costs in this country.

In the fifth area—services and innovation—it is clear that we have to secure a new data adequacy agreement. We have to advance co-operation in financial services and research, including by restoring mutual recognition of qualifications with a new road map that might actually make some progress. We have to strike a fair deal for our touring artists, and I absolutely agree with my hon. Friend about the need for a visa-based, time-limited and number-capped scheme for youth mobility—that is also in our mutual interest.

What surprised us most is that it was not difficult to find 20 different measures across those five areas of co-operation where we can deepen our future relationship. That reset is now imperative if we are to reset the UK’s power in the world and, crucially, deliver prosperity for the people we came here to serve.

US Steel Import Tariffs

Liam Byrne Excerpts

Tuesday 11th February 2025 Commons Chamber

[Mr Speaker]

I call the Chair of the Business and Trade Committee.

[Liam Byrne (Birmingham Hodge Hill and Solihull North) (Lab)]

What is essential now is that this does not escalate. Widespread duties on UK exports to the US would be devastating for economic growth, bad for inflation and bad for interest rates. The whole House ought to wish His Majesty’s new ambassador, Lord Mandelson, the very best of luck in the conduct of his new tasks in Washington. What flexibility will the Minister allow on increasing funding to UK steelmakers through the steel strategy if they confirm that that is essential to maintain a sovereign capability in this country?

[Mr Alexander]

I am grateful to my right hon. Friend for his generous words about the incoming UK ambassador to Washington, who—notwithstanding his commitment at the weekend to fly under the radar—is already in post and is making necessary calls. He is but one of the key interlocutors we have established with the incoming Administration, and—reflecting the earlier questions that we were asked—we are already actively engaged with the US Administration.

More broadly on the approach to the UK steel industry, my friend and colleague the Minister of State for Industry is this afternoon meeting representatives of the steelmaking trade unions and representatives of the principal steel companies in the United Kingdom. The Secretary of State will further that dialogue in the next 24 hours. There has already been outreach to the UK Steel trade body. In relation to the commitment for the steel strategy that we are due to unveil in the spring, I can assure my right hon. Friend that there is already a very active dialogue that will incorporate issues related not just to potential tariffs but to the risks of trade diversion, and to the substantive issues that he raises.

UK-EU Relations

Liam Byrne Excerpts

Thursday 6th February 2025 Commons Chamber

[Madam Deputy Speaker (Caroline Nokes)]

I call the Chair of the Business and Trade Committee.

[Liam Byrne (Birmingham Hodge Hill and Solihull North) (Lab)]

I very much welcome the statement from my right hon. Friend, but the reality is that he has inherited a deal with the European Union that has knocked about 4% to 5% off our economic output each year. Certainly, the Business and Trade Committee heard in Brussels last week a clear message from the business community that we need to be as specific and as ambitious as we can be ahead of the reset summit with the President of the European Commission. What plans does the Paymaster General have to bring together the British business community and, indeed, the trade union community so that the Prime Minister can go into his summit with President von der Leyen clear-minded about just how ambitious our wealth creators want him to be?

[Nick Thomas-Symonds]

The Chair of the Select Committee is entirely right about the involvement of civil society, trade unions and businesses. I am sure that he will have seen the comments of the managing director of food at Marks & Spencer only today, who said:

“We wholeheartedly support the Government’s plan to negotiate a Veterinary Agreement; the benefits would be significant, there is no discernible downside, and we will offer whatever help we can to aid the negotiations.”

There was a time when the Conservative party was on the side of business—clearly no more.

G20 and COP29 Summits

Liam Byrne Excerpts

Thursday 21st November 2024 Commons Chamber

[Liam Byrne (Birmingham Hodge Hill and Solihull North) (Lab)]

I congratulate the Prime Minister on the restoration of UK leadership. Lord Prescott, who did so much to lead on Kyoto, would be truly proud of my right hon. Friend’s work and that of his Cabinet. I was very proud to lead the UK Inter-Parliamentary Union delegation to Baku this weekend, where we heard loud and clear a report from finance experts who say that we need $1 trillion a year in climate finance between now and 2030. The UK has led from the front, but the reality is that we cannot hit that target without building a bigger World Bank. We could lead that charge by recycling some of the £3 billion we get back from the European Investment Bank. Is that an initiative the Prime Minister could look into?

[The Prime Minister]

I thank my right hon. Friend for his question. On UK leadership, we are back leading on the stage. The sentiment among other leaders is that they are glad to see the UK back, leading on these issues. Their words to me are that they feel there has been an absence under the previous Government. On finance, this is really important. There are a number of ways we should and can leverage private money to meet very important challenges, whether the global climate challenge or other challenges. We took steps at COP to set out how those mechanisms could be improved.

NATO and European Political Community Meetings

Liam Byrne Excerpts

Monday 22nd July 2024 Commons Chamber

[The Prime Minister]

I thank the Leader of the Opposition for his welcome comments in relation to President Biden, which I am sure will be well received, and for what he said about the consensus on foreign policy in relation to NATO and the EPC. That is important, and I am glad that we have managed to get that consensus over recent years, because we are in a more volatile world, and the world is looking in to see unity in the United Kingdom, particularly in relation to Ukraine. I have commended the role of the previous Government in relation to Ukraine, and I do so again. I took the deliberate decision when I was Leader of the Opposition not to depart on Ukraine, because I took, and continue to take, the view that the only winner in that circumstance is Putin, who wants to see division. It is very important for Ukraine to see that continued unity across this House.

We will of course work with others. In relation to the point made by the Prime Minister—[Interruption.] Old habits die hard. On the point made by the Leader of the Opposition about security and co-operation with our EU allies, I do believe that is to our mutual benefit, but I can assure him and the House that it does not cut across, or come at the cost of, other alliances. We are fully committed to AUKUS—as I made clear in opposition, and I take this early opportunity to affirm it in government—because it is an area on which there is an important consistency across the House.

In relation to the conflict in Gaza, the more that we in this House can be united, the better. It is an issue of great complexity, but the approach that has been shown is the right one, and we take it forward in that spirit.

[Liam Byrne (Birmingham Hodge Hill and Solihull North) (Lab)]

I congratulate the Prime Minister on his flying start on the world stage, and on his determination to build not simply a rules-based order, but a rights-based order rooted in what Churchill called the great charter and we call the European convention on human rights. We want its freedoms and liberties to be enjoyed by the people of Ukraine, but that will take victory over Russia. It will need more than courage; it will need resources. Did he discuss with international colleagues the need not simply to freeze Russian assets, but to seize and put them to work in defeating once and for all the tyranny of President Putin?

[The Prime Minister]

I thank my right hon. Friend for that question on the centrality of the Ukraine issue. Yes, of course, that requires resource and more pressure in relation to sanctions, but it also requires resolve. A key issue coming out of the NATO council in Washington was the real sense, particularly in relation to Ukraine, of a bigger NATO—with more countries than ever at the council—a stronger NATO, and a unity of resolve in standing up to Russian aggression, particularly in Ukraine. Resources and sanctions were central to the agenda there.

Protecting Steel in the UK

Liam Byrne Excerpts

Tuesday 23rd January 2024 Commons Chamber

[Ms Ghani]

The technology has moved on. Although 90% of everything that we need can be made from recycled steel, there is a gap, and Scunthorpe is obviously filling that gap at the moment.

My hon. Friend also made an important point about the Opposition, who are talking about potential job losses. In 1997, 70,000 people worked in the steel industry; by 2010, that number had fallen to 30,600—a fall of 40,000 jobs or 56%. The Labour leader between 2010 and 2015 did not mention the steel industry once in Parliament. Our investment at Port Talbot is the largest that has been made for a substantial period, and although the situation is challenging, without that support there was a massive risk that Tata would have left Port Talbot.

[Liam Byrne (Birmingham, Hodge Hill) (Lab)]

rose—

[Ms Ghani]

I give way to the Chair of the Select Committee.

[Liam Byrne]

I just want to pin something down, because that was an important intervention. On 8 November the Minister said, in reply to a question from the hon. Member for Scunthorpe (Holly Mumby-Croft), that she thought it was vital to our economic security for these islands to retain their virgin steel-making capability. I put that position to the Secretary of State this morning, and she refused to confirm it. Will the Minister tell the House today whether it is her position that this country needs the capability to make virgin steel—yes or no?

[Ms Ghani]

I did follow the debate in the Select Committee, and I think the Secretary of State said that these decisions are commercial but that we will do everything that we can, and that our fundamental priority is to ensure that steelmaking continues in the UK.

Tata Steel’s decision has not been taken lightly. This consultation comes against the backdrop of a decade of losses, which were ignored by the Labour party when it was in power. Indeed, Tata’s managing director confirmed over the weekend that, as I mentioned earlier, the Port Talbot plant has been bleeding £1.5 million a day. Its decision also comes with a growing awareness that the UK steel industry has to modernise, because that is what customers want and the technology now exists. In those circumstances, businesses are compelled to make difficult decisions and tough changes. In fact, without the opportunity to install a modern electric arc furnace, the future of the plant would have been under serious threat.

--- Later in debate ---

[Liam Byrne (Birmingham, Hodge Hill) (Lab)]

I add my voice to the chorus asking the Minister to rethink the strategy and this deal comprehensively. At the heart of this debate is a simple truth: what the Government have offered us is a half-measure, and it is a half-measure that now threatens job security, economic security and climate security. Frankly, that is a price not worth paying.

The threat to job security has been well laid out by hon. Members this afternoon. It is not just 2,800 jobs at the steelworks itself; three times as many jobs will be lost because of the economic shock to the community. Here we have a situation where £500 million of taxpayers’ money is being forked out and up to 12,000 people are going to be thrown out of work.

The second point, which we must not let the Minister elude this afternoon, is that there has clearly been a change of Government policy on whether this country needs its own sovereign capability to make virgin steel. The hon. Member for Scunthorpe (Holly Mumby-Croft) spoke brilliantly and eloquently about precisely why we need to keep that capability in this country, and she was right to say that, in response to her urgent question in November last year, the Minister gave the House the very clear impression that she would defend a policy of His Majesty’s Government that we will retain sovereign capability for virgin steelmaking in this country.

However, when I asked the Secretary of State not once, but three times today whether it was the policy of His Majesty’s Government to keep that capability in this country, she declined to answer on all three occasions. She said that that was not a decision for Government to make, but a decision for industry—and, in her words, we might as well be trying to encourage people to keep typewriters. I do not think that is an appropriate response to a fundamental question of economic security.

The third point, of course, is on climate security, as my hon. Friend the Member for Aberavon (Stephen Kinnock) laid out very clearly. Tata has been very clear that it will honour its contract by importing steel from India. We know that that is 40% more carbon-intensive than steel made in this country and that other imports may now come in from China, where about 70% of the power is from dirty coal. That is bad for job security, it is bad for economic security and it is bad for climate security.

At the very least, we could have expected the Government to lay out a better plan that dealt with questions such as how we will guarantee the scrap supply, given that we now export 77% of our scrap and do not have a strategy to ensure that it is kept here in the event that the future is indeed in electric arc furnaces. We have not had a strategy on how to keep direct reduced iron technology here, and Tata is proposing to build that capability in Holland. So £500 million goes out the door, job security goes down, technology goes to Holland and dirty steel comes in. That is a bad deal and it needs rethinking.

British Steel

Liam Byrne Excerpts

Wednesday 8th November 2023 Commons Chamber

[Mr Speaker]

I call the Chair of the Business and Trade Committee.

[Liam Byrne (Birmingham, Hodge Hill) (Lab)]

I am grateful to the hon. Member for Scunthorpe (Holly Mumby-Croft) for securing this urgent question. The Minister is in peril of presiding over the end of primary steelmaking in this country and the curtain falling on 300 years of Britain’s industrial history. The announcement comes at a time when an analysis shows that the Department’s budget is set for a 16% real-terms cut in the years ahead. Is it the policy of His Majesty’s Government that blast furnaces will stay in operation in our country and that we will not be dependent on imports of primary steel? When can we expect a conclusion to the negotiations and some safeguarding of the vital industry either at Tata or at British Steel?

[Ms Ghani]

I congratulate the new Chair of the Business and Trade Committee, of which I was previously a member. As I have made clear, these are commercial negotiations and they are ongoing. When the decision was taken on Port Talbot, discussions had taken place for several years—even decades. This will not take that long, but my point is that many Ministers have stood at the Dispatch Box talking about steel and doing what can be done to protect and promote the steel sector in the UK. The negotiations are ongoing.

British Steel’s statement on Monday contained proposals and a plan—nothing is concluded yet. My focus, as our focus has always been, is on protecting the steel sector in the UK, protecting steel jobs in the UK and doing everything we can to procure more British steel in UK manufacturing. Of course, that continues. These are commercial decisions about how companies wish to continue their business going forward. I have made it clear that fundamentally there needs to be a mix of steel produced in the UK in the steel market, but the reality is this. First, steel produced in electric arc furnaces is far more nimble because of the technology, and it can be used for many more materials in advanced manufacturing than previously—that is a fact. Secondly, manufacturers, customers and consumers fundamentally want a cleaner, greener steel package. It is not just me saying that at the Dispatch Box; it is also the UK steel industry representatives who have put together a net zero strategy and are talking about having cleaner, greener steel going forward. We have a lot of scrap steel in the UK that can be recycled, and we have far more capacity to recycle that than we have for that steel to be used in UK manufacturing, but, fundamentally, we need to have a mix. I believe that that mix will continue as long as it can and should, but these are commercial decisions. We continue to negotiate with British Steel.

Israel and Gaza

Liam Byrne Excerpts

Monday 23rd October 2023 Commons Chamber

[The Prime Minister]

I thank my hon. Friend for all that she does to champion the Jewish community. I met most recently with Ministers, police chiefs and the Community Security Trust in Downing Street to discuss how we can better protect the British Jewish community at this difficult time, as well as additional funding. I have been clear that there is zero tolerance in our country for antisemitism. What we have seen recently is unacceptable and it should be met with the full force of the law.

[Liam Byrne (Birmingham, Hodge Hill) (Lab)]

Hamas’s crime was not just what was once called “the banality of evil”; it was the calculation of evil, which is why Hamas must be defeated. The Prime Minister is right that a humanitarian disaster is unfolding in Gaza. That is why he is right to say that we need a constant stream of aid pouring in. The UN Secretary-General is very clear that only a binding-on-all-sides negotiated cessation of hostilities will allow that aid to pour in as the Prime Minister said. Is the UN Secretary-General wrong, and if he is not what will the Prime Minister do at the United Nations to bring about that binding-on-all-sides negotiated ceasefire so that aid can flow and lives can be saved?

[The Prime Minister]

Aid is already flowing into Gaza as a result of the diplomatic efforts of many, including the UK, and now we are providing further not just financial but logistical support to increase the supply of that aid. We will continue to do so. It is vital that we get it in, and we are working very closely, as I said, with the head of the UN’s humanitarian agency, who is in constant contact with the Development Minister.

UK Automotive Industry

Liam Byrne Excerpts

Monday 18th September 2023 Commons Chamber

[Ms Ghani]

The hon. Lady started off appropriately by talking about how we work collectively on this issue. The rules of origin and tariffs were not just negotiated by us—there was another party at the table. The tariffs, if they are implemented, will impact not only on the UK car manufacturing sector but on manufacturers in Europe. As there are more cars imported from Europe into the UK, the burden will be far greater on those countries. The negotiation took place pre-covid and before Russia’s invasion of Ukraine. Of course, there is now a tight deadline, but negotiations with Brussels always go to the wire.

The important thing is this: we are negotiating hard for the UK automotive sector. Those manufacturers in Europe were also desperately trying to negotiate hard, because this impacts them just as much. Just as we have the Society of Motor Manufacturers and Traders—the automotive sector’s umbrella group—campaigning, they have groups campaigning in Europe. Just last week, there was a huge amount of news coverage about how Europe is now incredibly concerned about the flood of cheaper electric vehicles into its market. The argument we are making should definitely be taken to the EU, because the tariffs would impact car manufacturing in mainland Europe, too.

[Liam Byrne (Birmingham, Hodge Hill) (Lab)]

The truth is that while gigafactories are now being built right the way across Europe, we need at least eight gigafactories with about 15 GW of capacity in the UK—including, I might say, one in the heart of the west midlands, which is home to about a third of UK automotive production. In the last Metro Mayor election, both the Conservative Mayor, Andy Street, and I promised that we would get that gigafactory built; it is still a large open space. When does the Minister anticipate those eight gigafactories being built in the UK? When does she anticipate a gigafactory coming to the Coventry airport site? If we fail, our automotive industry will be hit with tariffs soon and we will put 114,000 jobs in jeopardy.

[Ms Ghani]

The Tata gigafactory announcement ensures that we are front-footed when it comes to gigafactories—it will be one of the largest factories in Europe. The right hon. Member and the Labour party are obsessed with us needing five or eight gigafactories, but it is about capacity. It has been noted that we need, I believe, 89 GW by 2030, and with both Tata and Envision we are two thirds of the way there. That is how we need to compare with the rest of Europe: it is not about the number of factories; it is about the level of capacity that they provide. Even though we have those two in place, we are not complacent and will continue to do everything we can to secure further investment.

The right hon. Member talked about a particular site. Obviously, that will have to go through two funds within my Department, but we will always look at solid investment for even more gigafactory capacity in the UK.

[Liam Byrne]

I am grateful for that reassurance, because this is one question on which both the Conservative Mayor and I would be happy to come and lobby on behalf of the west midlands. The point is that we are told that we need 130 GW of capacity in the UK by 2040. Now, that may be eight sites or it may be more or fewer, but the key thing is that we cannot see a plan for the UK getting that capacity in place, unless the Minister gets up and tell us that there is a plan that she is about to reveal.

[Ms Ghani]

The right hon. Member and, of course, the Mayor for the West Midlands lobby incredibly hard—as they should, because they have fantastic sites for potential gigafactories—and those negotiations will continue. I always used to say at the Dispatch Box that we needed 100 GW of capacity, but the figure is now 89 GW. Envision and Tata provide us with a solid footing to get up to the capacity that we need, but we will not be complacent; we will continue our work.

As hon. Members will hear throughout my speech, over the summer we put in place a consultation on a battery strategy. I believe that, outside Norway, no other European country has such a strategy. We are working to produce a strategy to ensure that we have substantial capacity in the UK. The Tata commitment is huge, and I will allude to that as well. I mentioned Stellantis, which has started electric van production in its Vauxhall plant in Ellesmere Port. That transformation is also historic, as it makes the plant the first all-EV facility in the UK and one of the first in Europe.

I turn to gigafactories, the favourite topic of the right hon. Member for Birmingham, Hodge Hill (Liam Byrne). In the summer, we also helped to secure more than £4 billion of investment from Tata for a new gigafactory. At 40 GW, it will be one of the largest battery plants in Europe, equivalent to the size of almost 65 football pitches. It will create up to 4,000 highly skilled jobs as well as thousands of further jobs in the wider supply chain for battery materials and critical raw minerals. Most importantly, the investment helps to turbocharge our switch to zero-emission vehicles by providing almost half the battery production needed by 2030. It is not that we need 12, 15 or five; it is about the capacity we need. Tata takes us two thirds of the way there and Envision is on top of that.

The announcements are the most recent in a line of investment decisions over the last couple of years. In 2021, Nissan and Envision announced a £1 billion investment to create an EV manufacturing hub in Sunderland. Ford joined the line-up in 2021 with a £227 million investment in Halewood to make the company’s first EV components site in Europe, and increased its investment in the plant to £380 million in 2022. Last year, we saw Bentley commit more than £2.5 billion to transition its Crewe plant to zero emission vehicles, with the first EV model to roll off the production lines around 2025.

Jaguar Land Rover has also announced that it will invest £15 billion over five years into its industrial footprint as part of its move towards electrification. That is great news for the west midlands and Halewood, where Jaguar Land Rover has production sites, research and development facilities and its headquarters. These investment decisions are votes of confidence from a highly productive and innovative sector, showcasing that the UK has the best to offer when it comes to green manufacturing and new and future technologies.

--- Later in debate ---

[Ms Ghani]

I hear my hon. Friend. With up-to-date policymaking, we ensure that consumers and taxpayers get the best possible option of modern auto transportation.

As recent investment decisions suggest, our message—I keep reiterating it as co-chair of our industry-Government forum, the Automotive Council—that the Government have the automotive sector’s back, was heard loud and clear. In that regard, we do not shy away from the challenges the industry has been facing: rising costs because of Putin’s horrific war in Ukraine; supply chains disrupted by covid aftershocks; and a fierce international competition for green manufacturing investment, rooted in an economic security concern, leading to countries choosing protectionist tools and consequently threatening the hugely important global supply chains that rely on cross-border collaboration. Those are all serious challenges for the UK automotive sector.

Those issues, however, are not unique to us. Countries across the globe face similar challenges and provide different responses. Some feel that the best way to reach pole position in the race to secure green manufacturing is to spend incredible, eye-watering amounts of their taxpayers’ money. We have taken a different approach and concentrate on the best way to encourage investment with targeted support. We have more than a chequebook to attract companies to these shores. Our highly productive and skilled workforce, focus on innovation and ease of doing business are key factors in a company’s decision to base itself in the UK. We do not need more evidence of that than the three recent announcements I mentioned earlier.

As co-chair of the Automotive Council, I consult regularly with representatives of auto companies and listen to their views on how the UK can raise its international competitiveness. Our competitive business environment and regulatory system evidently continues to stimulate investment in the UK, but that can only come from a fruitful exchange with industry and by addressing concerns raised. For example, in February, we announced the British Industry Supercharger, a range of targeted measures to ensure electricity prices for key energy-intensive industries, including battery manufacturing, are in line with major economies around the world. An issue raised by many colleagues on both sides of the House is skills. We understand automotive companies need highly skilled individuals across the entirety of their business. One reason the UK is attractive is our world-leading universities, with four UK institutions in the global top 10, according to the QS world university rankings. But that is not all. We support the auto sector through the apprenticeships levy, with £2.7 billion in funding by the 2024-25 financial year. That will support apprenticeships in non-levy employers, often small and medium-sized enterprises, where the Government will continue to pay 95% of apprentice training costs.

We also recognise the importance of a level playing field. That is why, at spring Budget, the Chancellor launched a new capital allowances offer. Businesses will now benefit from full expensing, which offers 100% first-year relief to companies on qualifying new main rate plant and machinery investments from April 2023 until March 2026; the 50% first-year allowance for expenditure by companies on new special rate, including long life assets until 31 March 2026; and the annual investment allowance, providing 100% first-year relief for plant and machinery investments up to £1 million.

One issue that has already been touched on is our relationship and tariffs with Europe. To support our industry through the transition, we must also address any and all barriers to trade with partners and markets all over the world. Our closest trading partner is the EU, with whom we share not only climate goals and a trajectory towards electrification, but deeply integrated supply chains. Over 50% of cars manufactured in the UK and exported are destined for EU consumers.

For those reasons, we are working closely with industry to address its concerns about planned changes to the rules of origin for electric vehicles in the trade and co-operation agreement between the UK and the EU. Since signing a deal, unforeseen and shared supply chain shocks have hit the auto industry hard. That has driven up the cost of raw materials and battery components, making it harder to meet the changing rules. That risks industry in the UK and the EU facing tariffs on electric vehicles at a crucial time in the transition to electrification. I and the Government are determined to seek a solution to that shared problem and to work with the EU to fix it for 2024.

[Liam Byrne]

There are, of course, proposals by Chinese battery makers to consider investing in the UK. Can the Minister tell the House whether, if investments are made by those Chinese firms, the cars we make with those products will still be allowed to be exported tariff-free and will not get caught by new tariffs because of the amount of foreign content they might contain?

[Ms Ghani]

The right hon. Gentleman raises a valuable point. We need to ensure not only that we support UK manufacturers, but that new investors and entrants into the market are treated equitably. We know that, because of the negotiations taking place on rules of origin, there has been a consultation taking place in Europe on its anxiety about the market being flooded by cheaper EVs. Obviously, we need to allow customers to make a choice, but we have to ensure that UK manufacturers are not dealt a blow by any new Chinese entrants into the market. He knows my history when it comes to dealing with China and sanctioning. That is why I have been doing so much work not only to support our UK manufacturers, but to ensure our supply chain is resilient. I hope that will give him some confidence on this issue.

As I mentioned to the hon. Member for Luton South (Rachel Hopkins), this will impact EU manufacturers just as much as it impacts UK manufacturers; because they import more into our economy, it will be a heavier burden for them.

G20 Summit

Liam Byrne Excerpts

Monday 11th September 2023 Commons Chamber

[The Prime Minister]

My right hon. Friend has focused on the issue of maritime security in the Black sea for some time, and he has been correct to do so. We are talking and working with partners, allies and, indeed, Ukraine in considering all the different ways in which we could ensure the safe exit of and access to grain from Ukraine, and will continue to do so.

As for the global food summit that we will host in London, it will focus on four themes: creating new approaches to ending the preventable deaths of children, building a climate-resilient food system, anticipating and preventing famine and food security crises, and using science and technology to boost food security and nutrition. We are also working to deliver the food summit in combination with partners including the United States and Somalia.

[Liam Byrne (Birmingham, Hodge Hill) (Lab)]

May I first associate myself with the sympathies extended to the people of Morocco?

I welcome the language in paragraph 50 of the G20 communiqué about building a bigger World Bank. The truth is that we need to triple the lending of multilateral development banks if we are to mobilise the climate finance that the world now needs, and we cannot do that simply by building a better World Bank; we need to build a bigger World Bank. In the United States, President Biden is asking Congress to support a capital call and boost the balance sheet of the World Bank. Why is the UK, one of the founders of the World Bank, not leading the same argument? We could even use the money we are getting back from the European Investment Bank, and the Prime Minister, if he so chose, could call it a Brexit dividend. The world leads a bigger World Bank now, and the UK should be leading the case.