UK-US Trade and Tariffs

Luke Murphy Excerpts

Thursday 3rd April 2025 Commons Chamber

[Jonathan Reynolds]

I am grateful for that question. Again, the right hon. Lady can see that no one in this Government is fawning over the relative position we find ourselves in. That is why we are so determined to find a better way through. She is right to say that the announcement on steel and aluminium is a real danger to us, particularly the potential for derivative tariffs—that is, on a product that is not the raw steel or aluminium but is produced from them. That is why we are taking this so seriously.

We have an ambitious commitment to the EU reset. We need a partner on the other side. There has been some relative political instability in some key European partners, and they have to be in a position to have that conversation. But I say again that this is not a choice between the US and the EU—we can tackle this together. We can improve our trading relationship with both partners and with India, the Gulf and other parts of the world, and it is the commitment of this Government to do so.

[Luke Murphy (Basingstoke) (Lab)]

In January 2017, the then Conservative Foreign Secretary claimed that the UK would be “first in line” for a US trade deal; 2,722 days later, when the Conservatives left office, precisely nothing had been achieved. Incidentally, that is 37 times longer than the 73 days President Trump has been in power for his second term. Does the Business Secretary agree that it is hard to take the Conservative party’s criticisms of our trade approach seriously, given its appalling record on meeting its claims to be able to achieve trade deals? I urge him to continue with his calm approach to this, in the interests of businesses in Basingstoke and across the country, and to take those decisions in the national interest.

[Jonathan Reynolds]

I am grateful for my hon. Friend’s support. There was no real progress on a federal level with the US under the previous Government. The former President made the decision that he would not pursue trade deals, so there was perhaps not much they could do on that, but I do sometimes reflect that the Conservative Government broke our relationship with our nearest and most important trading partner, which is the European Union; they then fell out with countries in the Gulf and could not do that deal; they could not do the deal with India; and they would not engage with China. For a global Britain policy, there is not much of the globe left if we find ourselves in that position. That is not best practice for us to follow, but we welcome Conservative Members’ support for our approach if it exists and continue to say that this is surely the right way forward for all our constituents.

Oral Answers to Questions

Luke Murphy Excerpts

Thursday 30th January 2025 Commons Chamber

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

No.

[Luke Murphy (Basingstoke) (Lab)]

T4.  Basingstoke is a digital powerhouse, once dubbed the “silicon suburb”. It is home to over a thousand tech companies and thousands of high-quality tech jobs. Will the Minister set out what the Government are doing to support high productivity digital hubs, like Basingstoke, to scale, secure investment and contribute towards the Government’s national growth mission?

[Sarah Jones]

My hon. Friend is right that there is a lot of expertise and a lot of tech companies in his patch, and we want to see them thrive. It is for the Government to support that growth, to listen to what the barriers to growth are and to tackle them. Our digital development strategy, the UK’s digital strategy and our AI strategy, which the Prime Minister launched, are all vehicles to support these brilliant industries that we want to encourage. I am always happy to talk to my hon. Friend about what more we can do to encourage more of them on to his patch.

Critical Minerals: Domestic Production

Luke Murphy Excerpts

Tuesday 3rd December 2024 Westminster Hall

[Perran Moon]

It is essential that there is an ongoing dialogue about the critical minerals list. I attended a conference yesterday with the British Geological Survey, at which it explained how it came up with the critical minerals list. My hon. Friend is absolutely right that we need to focus on those minerals that are crucial to the development of our economy. Those minerals are essential for our batteries, cars, wires, consumer devices and defence applications.

To be clear, critical minerals are the cornerstone of the clean energy revolution—the lifeblood of electric vehicles, wind turbines, solar panels and cutting-edge electronics. In a world where demand for technology grows ever stronger, critical minerals stand as both our greatest challenge and our most brilliant opportunity. Demand is set to massively increase over the next few years and decades, as more consumers buy electric vehicles powered by renewable energy.

I have framed critical minerals as a great challenge as well as an opportunity. That challenge arises because at the moment the UK imports almost all of its critical mineral demand. A number of countries dominate the upstream supply chains, with the top three nations dominating well over three quarters of global output, according to the International Energy Agency. That concentration of production is even higher when it comes to refining operations, where China dominates. By 2030, 85% of lithium will be refined in just three countries. That level of supply chain domination is distinctly undesirable for our decarbonising economy and is much higher than the production concentrations of fossil fuels.

We must diversify our supply chains to achieve greater resource security, including the development of domestic production capabilities. Other large economies such as the US, Canada, Australia, and the EU are working to secure their own critical mineral supply chains, and we must not be left behind in the race to supply security.

[Luke Murphy (Basingstoke) (Lab)]

I apologise for being late, and I congratulate my hon. Friend on securing this important debate. I agree that the market of critical minerals is intensely concentrated in China. Therefore, for security reasons, for economic opportunities and to achieve net zero, it is vital to secure the domestic supply chain. Does he welcome, as I do, the recent memorandum of understanding between Cornish Lithium and LevertonHELM, which produces speciality lithium chemicals, in my constituency? That will help to secure a domestic supply of lithium to support the development of the UK’s battery sector, which in turn will help to maintain the competitiveness of our automotive sector.

[Perran Moon]

I thank my hon. Friend for that intervention and wholeheartedly agree with him. As I will mention later, although I am Cornish and focus on Cornwall, there are benefits to be had throughout the United Kingdom.

Relying unreservedly on international supply chains increases our global carbon emissions and means we cannot ensure a higher level of environmental care and social standards in the extraction and processing of these materials. To mitigate that dependency and build secure localised supply chains, including for electric vehicle batteries, investment in domestic extraction and processing is essential. Establishing our domestic industry would also aid our export capabilities.

Our significant lithium reserves could be upstream of a developed battery industry, in turn feeding into the demand for electric vehicles, which is predicted to increase by 30 times up to 2050. The EU is the main export market for UK cars. In 2027, EU rules of origin will come into force, mandating that 65% of the value of a battery must originate in the EU or UK, or there will be significant additional costs. Developing domestic industry will keep our exports compliant with those rules and will keep us protected against any other rules on environmental credentials.

Let us consider the critical mineral resources that the UK possesses. From my own constituency in the heart of Cornwall to Pembrokeshire in Wales, County Durham, Cumbria, County Tyrone in Northern Ireland and the central highlands of Aberdeenshire, the UK is littered with critical mineral potential. Most significantly for the green transition, we find reserves of lithium, tin and tungsten in economically viable quantities.

We should also appreciate that those key areas have been mined historically and are all areas of significant socioeconomic deprivation. If we can create an environment for a domestic industry, there is significant potential for wealth to be held in those communities in the form of good, well-paid jobs. I would like to discuss the particular opportunities in Cornwall, with which I am most familiar.