Oral Answers to Questions Debate
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Lindsay Hoyle
Main Page: Lindsay Hoyle (Speaker - Chorley)Department Debates - View all Lindsay Hoyle's debates with the Department for Business and Trade
(2 months, 1 week ago)
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Jonathan Reynolds
I thank my hon. Friend for raising that important matter. Given the sums of money involved, I can understand why that is a substantial issue for businesses in her constituency. It relates to the duties that were charged at a time of significant political uncertainty. This is a Treasury issue relating to taxation, but I promise we will get her the meeting she needs, and work with her to ensure that she gets the answers she requests for her constituents.
Greg Smith (Mid Buckinghamshire) (Con)
There is no clearer pointer on business confidence than the Bank of England’s recent survey on employers’ responses to the Budget. Some 59% expect lower profit margins; 54% expect to raise prices; 54% expect lower employment; and 38% expect to pay lower wages than they otherwise would have. Now City AM reports that Labour has carelessly lost all its business backers. Will the Secretary of State show any contrition, admit that business confidence is through the floor, and start standing up for business, rather than the Treasury?
Jonathan Reynolds
If the hon. Gentleman googles that statistic, he will find that it is not actually true, but I appreciate that it is demanding being in opposition, and that there may not always be the capacity and resources required. As we heard on the excellent Second Reading of that legislation, the vast majority of employers in the UK already operate to a higher standard than the level to which the floor is being raised in the Employment Rights Bill. I do not in any way pull back from saying that some of the most vulnerable, insecure and low paid members of our society will benefit from the Bill; that is exactly what it is about. Those people may have given up on politics or think that the mainstream political system will not deliver for them. I reject the claim that certain industries require a supply of labour from jobs that do not give people the security and dignity that they need. This is a set of proportionate, reasonable reforms that will make a difference—
Jonathan Reynolds
I have absolutely no doubt that the Government’s agenda is one for employment, business investment and growth. Some of the things that this country needs the most could only have been delivered by a change of Government. I simply do not believe that the Conservative party is capable of reforming the planning system or having a long-term industrial strategy, fixing our relationship with the European Union, and all the rest of it. Yes, there have been challenges, but the Conservatives know what they left behind. They knew what they were doing. There is a reason the Conservative party had no spending plans for the next financial year. We have had to confront that reality, but we cannot have the kind of success that this country needs unless we are willing to fix the foundations and focus on the long term. The Chancellor did that in the Budget, and the agenda of the Department for Business and Trade is extremely attractive for the future.
Dame Harriett Baldwin (West Worcestershire) (Con)
Some of the most successful small and medium-sized businesses, which truly think long term, are owned by families, so why does the Secretary of State think that it will help his long-term growth mission for the Government to start taxing those businesses when they get passed on to the next generation?
Jonathan Reynolds
With respect, I hear a lot of calls from the Conservatives to cut taxes and increase spending, but still no account of how they would do that. I appreciate that sometimes the initial transfer into opposition can feel exhilarating, but there is a responsibility that comes with it. I would like to see an account from the Conservatives of how they would pay for it.
For all tax changes across the board, we can still say with real confidence that the UK has a competitive tax system—benchmark our corporation tax, and the allowances on it, our capital gains taxes and, in this case, our inheritance taxes. The mistake that the Conservatives make is that they forget that the adjustments to specific reliefs for businesses and agricultural property are on top of the existing inheritance tax thresholds. Frankly, a little less scaremongering from the Opposition and a bit of focus on what is really at stake would be welcome.
Sarah Gibson (Chippenham) (LD)
Small businesses are at the heart of our local communities. Firms such as Carbon ThreeSixty in my constituency are cutting-edge manufacturers of carbon fibre products. However, its growth as a small business is seriously affected by its ability to attract and retain quality staff, predominantly because of the poor public transport and completely non-existent cycle routes. These issues cut right across Departments. I would therefore be grateful if the Secretary of State could confirm what discussions he has had with ministerial colleagues in other Departments about how rural transport infrastructure would greatly support small and medium-sized businesses.
Tonia Antoniazzi
Northern Ireland businesses, large and small, received just 0.6% of what the Government spent with UK defence companies between 2018 and 2023, compared with 25% in the south-east of England. As my Committee heard when we visited Northern Ireland last week, Spirit AeroSystems, which works on high-value defence and other aerospace contracts, faces an uncertain future, as half of its 3,600-strong workforce in Belfast wait to find out whether their jobs are safe following Boeing’s buy-out of the company and the subsequent takeover by Airbus of only 50% of the work at its site in the city. We all know what happens to supply chains, communities and individuals in these circumstances, so what discussions are Ministers having with Cabinet colleagues, with Airbus, and with other interested parties to safeguard those jobs at Spirit now and to increase Government spend with Northern Ireland defence companies in the future? [Interruption.] Thank you, Mr Speaker.
Sarah Jones
We love a long question, and it was a good one. My hon. Friend is absolutely right to raise this issue, one that we are all of course concerned about. My right hon. Friend the Secretary of State met the global chief executive officer of Airbus last week, and I have met representatives of Airbus, Boeing and Spirit AeroSystems and talked about this issue. We care about those jobs and about the future of our defence industry in the UK—it is incredibly important to us for many reasons—so we are doing what we can to make sure there is a good outcome.
Jim Shannon (Strangford) (DUP)
Challenged already!
In the short time that the Minister has been in her role, she has shown quite clearly that she has a deep interest in Northern Ireland. Defence, light engineering and cyber-security are all vital to jobs and the economy in Northern Ireland, but what assessment has been made of the sustainability and efficiency of Northern Ireland’s agrifood sector, and will the Minister commit to promote the productivity of that industry across the United Kingdom and, indeed, across the world? That is as short as I can make it, Mr Speaker.
Gareth Thomas
I commend my hon. Friend on her work with the Ramsgate empty shops action group. Her experience on her high street is sadly echoed up and down the country—under the Conservative party, vacancy rates on our high streets shot up. High street rental auctions, which are the new powers that my hon. Friend alludes to, will help local councils to bring vacant units back into use, working with local communities. That will hopefully help to drive co-operation between landlords and councils and make town centre tenancies more accessible and affordable. We are encouraging local authorities to take advantage of those powers. As I suspect my hon. Friend already knows, colleagues in the Ministry of Housing, Communities and Local Government are looking to do further work in this space.
Sir Oliver Dowden
I did not realise you had grouped them, Mr Speaker. Forgive me—a schoolboy error.
What advice would the Minister give struggling businesses in my constituency who are trying to work out how to absorb Labour’s national insurance hike? Would he advise them to increase their prices, to squeeze wages or to cut investment, and can he explain to those businesses how that fits with the Government’s promises to increase growth?
Gareth Thomas
Despite the considerable cold, I very much enjoyed my recent visit to Gateshead town centre, and I was impressed by the dynamism of the businesses that he and I met at his instigation in the railway quarter. One of the things we are determined to do is to increase access to finance for small businesses up and down the country. That is why we have provided over £1 billion across this year and next year for the British Business Bank, particularly to drive access to finance for small businesses such as the ones to which he introduced me.
Dame Harriett Baldwin (West Worcestershire) (Con)
One of the ingredients for a successful high street is having a post office in the mix. The Government have inherited a network of 11,500 post offices, and that number has been stable since 2010. Will the Minister commit to supporting high streets by maintaining the scale of the post office network in this Parliament?
The Secretary of State for Business and Trade (Jonathan Reynolds)
It has been a hugely significant six months for the Department for Business and Trade. After our record-breaking international investment summit and our industrial strategy Green Paper publication, my Department has been engaging with businesses big and small to drive growth. Just this week we have helped to land a £500 million train-building deal with Hitachi, securing hundreds of jobs in the north-east—another promise fulfilled from the election campaign. For smaller businesses we are reforming business rates to breathe new life into our high streets, while launching a new fair payment code, tackling late payments to SMEs, and supporting new high street rental auctions to improve town centres. As we have heard, our brand new business growth service will streamline SME support on everything from finance to exports.
We are also tackling the challenges that we inherited, negotiating a better deal for Tata Steel employees in Port Talbot, while progressing a UK-wide steel strategy. Our Horizon convictions redress scheme shows that we are righting the wrongs of the past for victims of the Post Office scandal. I look forward to working with all hon. Members in the new year, delivering on our plan for change, going for growth, and realising a decade of national renewal. In addition, Mr Speaker, I would like to wish you, all hon. Members, and businesses across the UK a very merry Christmas.
Alex Baker
My constituents still mourn the loss of our M&S outlet in 2015, but we are delighted that Superbowl UK has just opened in Aldershot. These anchor retail and leisure tenants are so vital for our town centres, so what can the Government do to assist communities such as mine to ensure that we can encourage businesses to be the cornerstone and footfall drivers of our town centres?
Jonathan Reynolds
I very much agree and welcome the question from my hon. Friend. I certainly recognise that high streets are going through a transition from being primarily retail centres to now having much more of a mix of retail, hospitality and leisure, and I am delighted to hear about Superbowl’s investment in Aldershot. I am not nostalgic for a town centre or a high street that has passed; it is about how we do that transition into the future. There is great practice around the country, whether in Aldershot or in Walthamstow, where I was recently, and the Government’s agenda is committed to delivering that.
Mr Speaker
I remind the Secretary of State that these are topical questions, and contributions should be short. I come to the shadow Secretary of State for a good example.
Andrew Griffith (Arundel and South Downs) (Con)
One of the great British innovations is the gift of free trade, lifting billions out of poverty abroad and increasing prosperity at home. Thanks to the Conservatives, this week the UK proudly joined the comprehensive and progressive agreement for trans-Pacific partnership, a bloc that includes some of the world’s fastest-growing economies, as well as major trading partners and investors, such as Japan and Canada. With the Government having precious little else to show on growth so far, will the Secretary of State update the House on when he expects to conclude free trade deals with the Gulf, with India and with the US?
Jonathan Reynolds
At least we have some things we can agree on there, which is a nice start to the Christmas period. I agree that the UK has always been and must be a champion of free trade in a world where trade issues will be politically significant in 2025. We can work together on that future. We believe that we have progressed the Gulf Co-operation Council trade deal significantly. The shadow Secretary of State will know that there were some problems between the previous Government and some countries in the GCC, particularly the UAE, where the relationship had unfortunately got into a difficult place. We have repaired that and the talks are going well. It is always a mistake to put a deadline on those, because it can limit our negotiating potential. When it comes to the US, we will see what happens with the President-elect, but I am looking forward to negotiation and discussion about that.
Andrew Griffith
The Secretary of State can count on our support to bring those deals forward. It pains me to say it, but as we have heard today, business confidence is at an all-time low, bar the pandemic. Hiring is collapsing and companies are fleeing. Labour has talked growth, but it has delivered decline. The one game changer now would be a US trade deal. Will the Secretary of State urge the Prime Minister to stop obsessing about going backwards into the EU and agree with me at this Christmas time that the best gift for British business would be for the Prime Minister to get on a plane to Washington and talk trade with President Trump?
Jonathan Reynolds
I might be biased, but I thought that the international investment summit that we held was the best day of this year. That was not just because of the investment and the real tangible jobs that came from it, but because of the clear, simple message that we could put out there: stability, openness and improving the investment environment. I am delighted to hear the news from Wales. Not only will we support that, but I appreciate the strong working relationship we have on such issues as Port Talbot and getting a better deal for that community and the workforce. We have worked hand in glove with the Welsh Labour Government, and it strengthens the things we are able to do together.
Sarah Gibson (Chippenham) (LD)
Tomorrow—on Friday the 13th—the EU’s general product safety regulation comes into effect. Businesses are telling me that the additional costs will mean that they can no longer sell to the EU and to Northern Ireland. What steps is the Department taking to ensure that small businesses are supported as the regulation comes into effect?