Oral Answers to Questions

Lindsay Hoyle Excerpts

Thursday 13th March 2025 Commons Chamber

[Jamie Stone]

In conversation this morning with Trudy Morris, the CEO of the Caithness chamber of commerce, she outlined the sheer importance of tourism businesses to the local economy and the farmers in Scotland. The concern expressed to me is on the rate of VAT on tourism and similar businesses, and although we do not know whether the Highland council will impose a tourism levy, that could be a double whammy. I do not expect for one instant hon. Members on the Front Bench to say, “Jamie, you can have a cut in the rate of VAT”—well, I dream sometimes—but I would be grateful for a meeting to discuss the nature of the problem and how we could possibly tackle it.

[Mr Speaker]

You might get a chocolate biscuit these days.

[Gareth Thomas]

I apologise to the hon. Gentleman, as I cannot fulfil his dreams right now. However, I am happy to meet him to talk about that issue. I recognise that there is considerable interest in that question from the hospitality industry, so I am happy to meet to hear, in a bit more detail, the particular concerns expressed to him.

[Mr Speaker]

I call the shadow Minister.

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[Gareth Thomas]

I say gently to the right hon. Gentleman and his Conservative colleagues that we had to take the difficult decisions in the Budget to increase employer national insurance contributions because of the mess that their party left the country in. The shadow Secretary of State for Business and Trade, the hon. Member for Arundel and South Downs (Andrew Griffith), helped to write the Liz Truss Budget that did so much damage to our country—we are trying to sort out the mess. The shadow Secretary of State still has not apologised for his part in that fiasco. He should take the opportunity to do so during these questions.

[Mr Speaker]

I call the shadow Minister.

[Greg Smith (Mid Buckinghamshire) (Con)]

Yesterday, the owner of the hugely popular Rumsey’s, which is celebrating 21 years on Wendover high street in my constituency, emailed me to say:

“We estimate the changes coming in April will add 15% to our staff costs that we simply don’t have. Therefore we have had to sadly make redundancies, put in a recruitment freeze and implement staff hour cuts to offset this.”

With real-world testimony like that replicated up and down the country, will the Minister finally acknowledge that an urgent change of course is needed to support high streets, scrap the employer NI rise, save jobs and protect communities?

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[Justin Madders]

The hon. Member could not have put it better. He has explained the benefits of trade union membership, which is something that Members on the Conservative Benches clearly do not understand.

[Mr Speaker]

I call the Father of the House.

[Sir Edward Leigh (Gainsborough) (Con)]

10. What steps he is taking to support the hospitality industry.

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[Mr Speaker]

I call the shadow Minister.

[Dame Harriett Baldwin (West Worcestershire) (Con)]

The Business Secretary met recently in Japan with Fujitsu, which developed the Horizon system and has offered to contribute to the compensation for victims. Can the Minister tell the House how much the Secretary of State has asked it to contribute, so that taxpayers are not on the hook for £1 billion?

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[Jonathan Reynolds]

I thank the hon. Member for her question, and I thank Alison and Kevin for their important work. We already talked about the difficult choices that the Government faced and the unenviable choices that had to be made. Health and social care was a beneficiary of the additional revenue that needed to be raised to meet some of the challenges we face, but we are not casual about the impact of that, and we recognise the pressures that come from that. I would say that I do not agree. Taxes have to apply to every sector, and we cannot carve out certain sectors. However, I appreciate the pressures that she articulates. That is why the rest of the Government’s agenda is set to address all those factors.

[Mr Speaker]

I call the Liberal Democrat spokesperson.

[Clive Jones (Wokingham) (LD)]

Small businesses are the backbone of the British economy. Up and down the country, we have success stories of innovative start-ups and family-run businesses that should be part of the Government’s plan to get Britain growing again. Under the Conservatives, the number of small businesses in my constituency decreased by 360 between 2021 and 2024. The Tories messed up our national and local economy. Is the Minister concerned that his Government’s national insurance rises will damage the economy, just as the Conservatives did?

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[Jonathan Reynolds]

I would say that businesses in the hon. Lady’s constituency should contact their local Conservative MP and say, “What was your plan?” because I think we have had three oral question sessions where this has broadly been the only thing that the Conservatives have to say. I genuinely want to know: what was the plan to pay for Post Office compensation? What was the plan to pay for the steel industry? When the Conservatives commissioned the public sector pay bodies with the remit that they were given, got the findings back, hid them and did not tell the British people during the general election campaign, what was the plan? How would they have reconciled that? The small business leaders, and businesses of every size, in the hon. Lady’s constituency know how to make difficult decisions. What—

[Mr Speaker]

Order. Look, this is getting ridiculous. We are on topicals, and that is the worst example I have seen of an answer to a topical.

[Steve Race (Exeter) (Lab)]

T2. The south-west has a huge number of innovative start-up and scale-up businesses, but we attract only about 3% of private equity and venture capital funding per year. What is the Department doing to ensure that foreign direct investors are aware of, and have access to, the fantastic business infrastructure opportunities that we have in Exeter and across the south-west?

[Mr Speaker]

I call the shadow Secretary of State.

[Andrew Griffith (Arundel and South Downs) (Con)]

How have we got to this point? After 35 weeks as Trade Secretary, 18 weeks since the US election, and an entire month since steel and aluminium tariffs were first announced, the Secretary of State is only now going to sit down with the Secretary of Commerce of our closest ally. While he has been correcting his CV, steelworkers and businesses are hurting today. This is a colossal failure of trade policy on his watch. Why has it taken so long, and when can we expect an agreement?

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[The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)]

My hon. Friend is a great champion of the social enterprise sector. She will know that we are committed to doubling the size of the co-op and mutuals sector. We recently met the recently launched mutuals and co-op business council to begin working with businesses on our plans to expand the co-op and mutuals sector. She may also be aware that our social enterprise boost fund is currently spending some £4 million on helping to support social enterprises that are already up and running.

[Mr Speaker]

I call the Liberal Democrats spokesperson.

[Jonathan Reynolds]

We reserve the right to take any action in response to any changes to our trading relationships, but I do think we can look to the opportunity for the UK, which is greater than for any other country, to get to an agreement that improves our terms of trade with the US. I reserve the right to take any action, but I think we can look forward in a positive way to improving that trading relationship, and that right now is my message and focus.

[Mr Speaker]

I call Chris Bloore.

[Chris Bloore (Redditch) (Lab)]

rose—

[Chris Law (Dundee Central) (SNP)]

rose—

[Mr Speaker]

I call Chris Bloore. [Laughter.]

[Chris Bloore (Redditch) (Lab)]

T6. Thank you, Mr Speaker. Fly by Nite haulage, based in Redditch, is trusted to deliver by the biggest names in music, TV and theatre. However, post-Brexit rules on visa and work permits are damaging the creative industries’ opportunities on the continent. Would the Minister agree to meet me to discuss how we can break the logjam and support British success stories such as Fly by Nite?

[Mr Speaker]

It was Chris Bloore’s turn. I am following the Order Paper, but I am going from side to side. Chris Law will come afterwards; he was not next.

[Jonathan Reynolds]

There are many Members called Chris.

I thank my hon. Friend for his question. As he will know, the creative industries are part of our industrial strategy. We are hugely proud of their soft power and economic impact, and of course we will get him the meeting he requests.

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[The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)]

I thank my hon. Friend for her question. The Groceries Code Adjudicator’s annual survey shows high levels of compliance by the supermarkets. However, a statutory review will actually commence next month, and I would encourage her and all stakeholders to contribute to it.

[Mr Speaker]

Now it is Chris Law’s turn.

[Chris Law (Dundee Central) (SNP)]

T5. Thank you, Mr Speaker. The US President said that the EU was created to “screw over the US”. However, while the EU stood up for its economy and imposed a $28 billion counter-tariff, the UK is being screwed by the US, which has made it clear that the UK will not be an exception to its levies, despite the Prime Minister’s pleading. Will the Secretary of State tell me whether the Government are content to remain a bridge between the EU and the US if it is a bridge that the US continues to walk all over, risking the UK economy with every single step?

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[Gareth Thomas]

We know that rural businesses want to see more investment in bus services and better transport infrastructure. My hon. Friend will appreciate that the Chancellor announced in the Budget some £650 million-plus in funding for local transport, which is designed to support everyday journeys and improve transport connections. I am sure, too, that she will welcome the better buses Bill, which is coming in to give local authorities—

[Mr Speaker]

Order. I call Seamus Logan.

[Seamus Logan (Aberdeenshire North and Moray East) (SNP)]

T9. Scotland’s goods exports to the US were worth over £3.7 billion last year, and scotch whisky exports were £971 million—the largest slice by value. If the Prime Minister cannot protect the UK and Scottish steel industries, how can Scottish people be sure that he will be able to protect our whisky industry from malicious US tariffs?

[The Minister for Trade Policy and Economic Security (Mr Douglas Alexander)]

I can assure the House that we are in regular touch with the Scotch Whisky Association. We fully appreciate the significance and importance of that industry not just to Scotland but to the UK. As my right hon. Friend the Secretary of State said, we are well served by a serious Prime Minister in these serious times, which affords us the opportunity for a dialogue in trade frankly not available to other countries.

[Mr Speaker]

I call the Chair of the Select Committee, Liam Byrne.

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

President Trump’s new tariffs are double trouble for Britain’s steel and aluminium suppliers. They will dent £350 million of sales, but they also risk swamping the UK with over-subsidised Chinese steel diverted from America. What is the Secretary of State’s game plan now to redouble defences for our UK metal makers?