Oral Answers to Questions

Liz Saville Roberts Excerpts

Tuesday 29th September 2020 Commons Chamber

[Nadhim Zahawi]

My right hon. Friend the Secretary of State addressed refreshing the industrial strategy, and, of course, manufacturing absolutely remains central to our industrial strategy. Some 65% of research and development is delivered by manufacturing in the UK. We remain the ninth largest manufacturer in the world, so manufacturing will be front and centre of our long-term investment in our green, sustainable recovery.

[Liz Saville Roberts (Dwyfor Meirionnydd) (PC)]

What recent assessment he has made of the effectiveness of the use of state aid by the Government.

[The Secretary of State for Business, Energy and Industrial Strategy (Alok Sharma)]

Government Departments consider the impact of any support they provide and the Government’s recent covid-19 measures have been hugely welcomed by businesses. Our upcoming consultation on subsidy control will allow us to gather views on how to ensure those measures continue to be effective in achieving our economic objectives.

[Liz Saville Roberts]

Putting the covid period to one side, it is worth remembering that in 2018 the UK spent only 0.38% of GDP on state aid. France spent twice as much and Germany four times more. With the United Kingdom Internal Market Bill, the Government will centralise state aid decision making in London. When will his Government lift the arbitrary borrowing cap on the Welsh Government to enable Wales to invest in Welsh infrastructure and thus boost Welsh productivity?

[Alok Sharma]

We have had this debate, of course, during the passage of the United Kingdom Internal Market Bill over the past few days. Subsidy control has never been a devolved matter. The right hon. Lady is absolutely right. We have always been clear that the regulation of subsidy control is a reserved matter. There will be a consultation, but ultimately we want to promote a competitive and dynamic economy throughout the whole of the United Kingdom.