British Steel: Negotiations

Mark Pawsey Excerpts

Thursday 2nd February 2023 Commons Chamber

[Ms Ghani]

Because we have invested so much in renewables, we know that there will be better energy costs coming down the line, but we have had £800 million for the steel sector since 2013. We know that policy is being reviewed, and we are going to make sure that support is just as substantial going forward. The UK offers a great place to have a steel sector, and we know that there are opportunities for growth. We know there is going to be a 20% increase in UK contracts, we are looking at procurement and we have a fantastic skilled workforce. There is support to help decarbonise and take away some of the costs of emissions, too. Support has been available—up to £800 million—and support will continue to be available.

[Mark Pawsey (Rugby) (Con)]

In the BEIS Committee report the Minister referred to, we recognised that the ability to produce steel is fundamental to the existence of UK manufacturing, and it was good to hear the Minister’s commitments. We know that, in part, the future will be about making more use of recycling of previously used steel in electric arc furnaces, but could she say a bit more about the discussions that have taken place with the broader industry to secure its future here in the UK?

[Ms Ghani]

My hon. Friend was my neighbour when I was on the BEIS Committee: we sat next to each other every Tuesday morning for two years, so I saw more of him than I did of my husband. I take care of manufacturing and advanced manufacturing too, so conversations are taking place across the sector. My attention since being in post has fundamentally been on steel, on ensuring that we can get these negotiations over the line, and on how we can take the sector forward and ensure it is as competitive as it can be, in particular by looking at procurement and ensuring that the £1.5 billion fund is actually used by the steel sector, that it comes forward and tries to get hold of as much of that money as possible.

Oral Answers to Questions

Mark Pawsey Excerpts

Tuesday 17th January 2023 Commons Chamber

[Mark Pawsey (Rugby) (Con)]

9. What steps his Department is taking to support the advanced manufacturing sector.

[The Minister for Industry and Investment Security (Ms Nusrat Ghani)]

The Government support advanced manufacturing through programmes in strategically important manufacturing sectors such as aerospace, automotives and life sciences. We have committed nearly £650 million to high-value manufacturing Catapult centres, and £200 million to the Made Smarter programme.

[Mark Pawsey]

Pramac Generac recently acquired Off Grid Energy Ltd, a highly innovative SME based in my constituency which makes high-tech power storage solutions to reduce fuel consumption and carbon emissions. Will the Minister join me in welcoming the high-quality advanced manufacturing jobs that it is providing, and may I invite her to visit Rugby to see the work that it is doing to provide more resilient, sustainable, efficient energy supplies?

[Ms Ghani]

I welcome the invitation, and it would be remiss of me not to wish my hon. Friend a happy birthday for yesterday.

We salute the great work that is being done in this firm and others throughout the country, and welcome the jobs that they provide. This is exactly why the Government’s £1.2 billion investment was set up for high-value manufacturing centres, to help manufacturers to bring advanced technologies such as these to the market. I look forward to visiting my hon. Friend’s constituency.

Oral Answers to Questions

Mark Pawsey Excerpts

Tuesday 29th November 2022 Commons Chamber

[Kevin Hollinrake]

I am grateful for the hon. Gentleman’s correspondence on this matter, and I look forward to meeting him on 7 December.

The prompt payment code, which we introduced and which we reviewed recently, will be out for consultation very shortly, and I am keen to learn from best practice how we can make it more effective. The hon. Gentleman is right to say that there are many issues facing businesses today, and we are keen to help them get through the difficulties that will no doubt continue over the next few months, but in my experience of business our best years come after our worst years, and I think we can be confident when looking ahead while also recognising that there will be difficult times in the short term.

[Mark Pawsey (Rugby) (Con)]

There are many SMEs in the retail and hospital sector. It is a sector that does well in the run-up to Christmas, which gives those businesses the opportunity to make some money. What impact does the Minister think the rail strikes that are planned for next week will have on their ability to recruit more staff?

[Kevin Hollinrake]

It is, of course, right that we look after the interests of business and consumers. There is no doubt that the strikes will have an impact on both parts of that sector, and it is also right for us to prioritise the needs of all consumers, not just those who are seeking to take industrial action. We urge all parties to get round the negotiating table as quickly as possible and try to reach a sensible agreement.

Energy Bill Relief Scheme Pass-through Requirement (Heat Suppliers) (England and Wales and Scotland) Regulations 2022 Energy Bills Support Scheme and Energy Price Guarantee Pass-through Requirement (England and Wales and Scotland) Regulations 2022 Energy Bill Relief Scheme Pass-through Requirement (England and Wales and Scotland) Regulations 2022 Energy Bill Relief Scheme Pass-through Requirement (Heat Suppliers) (Northern Ireland) Regulations 2022 Energy Bill Relief Scheme and Energy Price Guarantee Pass-through Requirement and Miscellaneous Amendments 2022

Mark Pawsey Excerpts

Monday 21st November 2022 General Committees

[Kevin Hollinrake]

My right hon. Friend makes the exact point. It may not just be the fact that the rent now charged reflects the increased cost of energy and the Government subsidy. It may also reflect that rents have changed in the area. They may have gone up or down. All these things are subject to market forces. The only way we can practicably deal with this is to require landlords, park home owners, or people who look after care homes to be just and reasonable in passing on the support to the individuals concerned.

[Mark Pawsey (Rugby) (Con)]

There is one thing that the Minister may not have considered so far. The park home owner has 60 days to pass the money on to the park home residents. What would happen in a circumstance where the park home owner’s business went into liquidation and they had already received the funding support for Government but not yet passed it on to the tenant? Is there some comfort that the tenant might have in those circumstances?

[Kevin Hollinrake]

My hon. Friend raises an interesting additional complexity, which I am not sure is dealt with in the regulations. However, again, there will still be a requirement for the administrator to pass on the benefit in that circumstance, I guess. That might be something I can discuss with officials and write to my hon. Friend about, if he is sufficiently concerned.

My right hon. and learned Friend the Member for North East Hertfordshire made a point about engagement with landlords. As I have said, we have done that, and we are certainly very concerned about the passing-through in all these schemes, particularly to the vulnerable. That is why we are working with organisations such as Step Up, Citizens Advice, charitable groups and food banks to make sure those people are sufficiently supported and that benefit is passed on to individual residents.

Newport Wafer Fab

Mark Pawsey Excerpts

Monday 21st November 2022 Commons Chamber

[Grant Shapps]

We do not agree with the hon. Gentleman’s characterisation. Private businesses run these operations and 100 different companies have invested in semiconductor devices. Five thousand UK companies, 90% of which are small and medium-sized enterprises, are designing and making electronic components, devices, systems and products. I know that there are still some Opposition Members who think that the Government should take the lot over, but that is not a sensible way to go about doing business. I have already explained how the Government not only invested in what happened in south Wales but are investing more, based on the autumn statement that we heard from the Dispatch Box on Thursday. Be assured that more money is coming, but, in the end, it is for the private sector to decide how to invest it.

[Mark Pawsey (Rugby) (Con)]

There is no overestimating the importance of the semiconductor industry and, although the UK has only a small proportion of global turnover, it is worth £8 billion to the UK and we have leading capabilities in intellectual property, research and development, and particular leadership in compound semiconductors. That is why any acquisition or sale in the sector must be closely looked at. Does the Secretary of State agree it is important that we control access to the high-tech sector knowhow we have developed, retain that expertise in the UK and take appropriate action to protect UK interests?

[Grant Shapps]

My hon. Friend is absolutely right—it is about protecting UK interests. I know he has great expertise on the issue from the Business, Energy and Industrial Strategy Committee, so he understands what he is talking about. It is very important, for example, that the critical mineral strategy is supporting throughout, including with semiconductors. In the end—I think the whole House will agree with this—if there is a trigger that requires us to take national security measures, and if we judge that the bar has been hit and we are concerned enough, not to take remedying action would clearly be a dereliction of duty. That is the reason we have stepped in and acted. All the other points are right. We want to see the continuation of semiconductor production, but we must take national security first. My hon. Friend is absolutely right about that.

Energy Prices: Support for Business

Mark Pawsey Excerpts

Thursday 22nd September 2022 Commons Chamber

[Mr Rees-Mogg]

The businesses that write can implement their own energy-efficiency measures—that is what businesses do. It is a sensible investment for them, because if they become more energy-efficient, they will save cash on their energy bills. We also need more secure and cheaper supplies of gas, which is why we are going to issue more licences and why we are looking at shale gas. It is really important that people have confidence that gas will flow through the pipes and into their boilers so that they can heat their homes during this and succeeding winters.

[Mark Pawsey (Rugby) (Con)]

At a time when they are facing substantial increases in a key cost of operating, businesses across the UK have welcomed the measures and, in particular, the speed with which the Government have responded. Did the Secretary of State see the remarks made by Kate Nicholls of UKHospitality, who praised the inclusiveness of this scheme, with it bringing in both small and large companies, and drew attention to how this is going to secure jobs in the long term?

[Mr Rees-Mogg]

I am grateful to my hon. Friend for his question. It is fundamentally important that we have a rapid scheme that protects as many businesses as possible, because the increase is so extreme that, on an immediate view of it, it was hard to see any business that would find conditions easy. Therefore, we had to act quickly and universally, and I am grateful for his support and that of the hospitality industry.

Energy Update

Mark Pawsey Excerpts

Monday 5th September 2022 Commons Chamber

[Greg Hands]

The closure was a commercial decision, made by Centrica, not a decision made by the Government.

[Mark Pawsey (Rugby) (Con)]

The Energy Minister has a well-deserved reputation for getting things done, and I thank him for the prompt responses he has given to inquiries that I have made to his office, especially in respect of businesses. I sense that he understands the challenges, such as for the small engineering business I visited last week whose energy bill is £13,000 a year currently, and which has had a range of quotes between £37,000 and £68,000 for the renewal of its contract. The staff tell me that means that in the coming year they may not be able to replace a machine or take on a couple of apprentices as they would like to do. He has told us about the details that will be coming on short-term support—I am sure businesses will welcome that when it arrives—but I wonder whether he would say a little more about the long-term proposals to decouple the electricity bills from the gas price.

[Greg Hands]

I thank my hon. Friend for that question. He is truly a champion of businesses in his constituency and across the country; I know the important work he does on the Select Committee on Business, Energy and Industrial Strategy, for example. He is right, in that most of the energy of businesses in this country is dealt with through long-term contracts. That is an advantage in giving certainty, but when it is time for the long-term contract to be extended or renewed that can lead to a very concerning rise in the price of that contract. The Government are keenly aware of that and it is absolutely something that our new Prime Minister and the team overall will be looking at.

Energy Security Strategy

Mark Pawsey Excerpts

Tuesday 19th April 2022 Commons Chamber

[Kwasi Kwarteng]

We have done more than many in driving onshore wind. The hon. Lady will know that we suspended the pot 1 auction and have brought it back, that we have more onshore wind than pretty much any other country in northern Europe, and that we continue aggressively and passionately to promote onshore wind.

[Mark Pawsey (Rugby) (Con)]

The retail energy market saw the big six suppliers increase to 90. Several were granted licences despite being undercapitalised, which caused them to fail and placed a burden on all consumers. We know that competition in the market is vital; what steps will the Secretary of State will be taking to make it effective?

[Kwasi Kwarteng]

In partnership with Ofgem, we have discussed trying to secure a much more resilient energy retail market, with financial covenants involving much more financial discipline and financial disclosure, as well as other ways in which we can ensure that what happened last winter does not happen again.

Business to Business Selling

Mark Pawsey Excerpts

Tuesday 19th April 2022 Westminster Hall

[Sir Mark Hendrick (in the Chair)]

I will call Mark Pawsey to move the motion and then I will call the Minister to respond. As is the convention for 30-minute debates, there will not be an opportunity for the Member in charge to wind up.

[Mark Pawsey (Rugby) (Con)]

I beg to move,

That this House has considered business to business selling and encouraging jobs and growth.

It is a pleasure to serve under your chairmanship, Sir Mark. I am delighted to have finally secured this important debate to consider the importance of business-to-business selling, which I will refer to as B2B; why there needs to be a selling revolution; and what needs to be done to upskill the B2B sales workforce—particularly in small and medium-sized enterprises—and to encourage more people to train in B2B selling. Finally, I will set out some measures that the Government could take to encourage professional sales both at home and abroad.

This debate was prompted by my chairmanship of the all-party parliamentary group for professional sales and by my 25 years’ experience of selling. Like most people who end up in sales, I had no intention of becoming a salesperson. Few people set out to make that their career path, but they end up there through other routes. As a business-to-business salesperson, I spent 25 years driving the motorways of Britain to talk to my customers and understand their needs. As a manager of B2B salespeople, I helped my sales team to win business, grow the business I was working for and drive prosperity.

It is with the benefit of that personal experience that I argue that the UK would not function without business-to-business selling. It is a huge and important part of the economy. In many businesses there is a saying: “Nothing gets made until a salesperson has taken an order.” That is the importance of the sector. Since I left the profession to come to Westminster 12 years ago, the job has become more demanding: it requires deep product knowledge but always with a high need for customer insight, empathy, communication skills, collaborative working, strategy and critical thinking.

Why is selling to business important? It is important to the economy and to create wealth, and it supports 10 million jobs. It is skilled work, and it was recently re-categorised as a profession by the Office for National Statistics. That upgrade in status was based on evidence that the majority of B2B sales job postings call for a degree and five years’ experience. It is an important fact that 80% of UK businesses make part or all of their turnover from selling to other businesses.

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Gentleman on bringing forward this debate. As a salesman in my father’s shop way back in the very early ’70s, and then with Henry Denny, a pork products firm in Portadown, I fell into sales by accident, perhaps, but I recognise its importance. Does the hon. Gentleman agree that with trade deals across the world potentially coming through, there is a greater need for more salespeople to push buyers and achieve greater economic growth for all of the United Kingdom of Great Britain and Northern Ireland—always better together?

--- Later in debate ---

[Mark Pawsey]

The hon. Gentleman anticipates many of the points I will make, and he draws attention to the distinction between retail sales and business-to-business sales. I note that he did not set out to go into sales—as I mentioned, few people do.

Business-to-business sales are believed to be 44% of the UK’s gross value added—economic output—worth an estimated £1.7 trillion. Companies involved in B2B pay nearly £22 billion in corporation tax and, as I said, employ more than 10 million people. Looking ahead, as the hon. Gentleman mentioned, the UK will rely on a massive amount of business-to-business selling overseas, to take advantage of the opportunities that we have, having left the European Union, in the development of new markets.

One concern is that there seem to be too few statistics collected about business-to-business sales. There is some confusion between retail sales and B2B sales, despite business-to-business sales being about four times more valuable. When official statistics are collected, no distinction is made between retail sales—what we would call consumer shopping or business-to-consumer sales—and business-to-business selling. That hampers understanding, as the two sectors are very different. Being an effective B2B seller takes skill and experience, whereas a retail sale is often a quick transaction.

Selling to another business is typically a lengthy and complex activity with many people involved on each side, and deals can have multiple stakeholders. For example, if we consider the arrangement of a business-to- business contract for the just-in-time supply of components to an automotive manufacturer, or to supply financial technology to a multinational bank, the salesperson involved will need extensive market insight, an under-standing of the customer’s needs, good negotiating skills, and often the ability to find solutions to legal and logistical problems. Consider the examples I have just given: B2B sales can be very high when compared with retail sales, and strategic outsourcing contracts can run into billions of pounds and take many years to negotiate. For those reasons, B2B selling requires a professional level of proficiency.

The impact of the pandemic has made it more important for policy makers to distinguish between retail and B2B. We know that jobs in retail are disappearing as consumers move to digital self-service; by contrast, the number of B2B selling roles is steadily growing. Unfortunately, however, many of those posts are hard to fill, and the sector suffers from a skills shortage. We need more and better salespeople to enable us to recover from recession and boost overseas trade. The CBI anticipates that if the UK can achieve its upskilling and retraining needs, that will boost the economy by between £150 billion and £190 billion a year by 2030.

I referred earlier to the all-party parliamentary group for professional sales, and I want to talk about some of the work that we have done. The group was founded in 2018 by Stephen Kerr, who was then the MP for Stirling and is now a Member of the Scottish Parliament. The mission of the all-party group is to

“improve the global recognition of the importance of sales and its impact on the UK economy; to promote and advance the sales profession and boost the success of British industry, especially in international trade.”

That is what I am hoping to achieve through this debate. I mentioned that my background led me to become a founding member of the APPG, and as its chairman, I am proud of the work that we have done. In particular, I am proud of two recent policy reports.

The APPG’s first inquiry, in 2019, looked at why so many small and medium-sized enterprises were under-performing at this essential business activity. In our report, “The Missing Link: Inquiry into the role of sales in increasing the productivity of small and medium-sized enterprises,” we highlighted how many small businesses had too few B2B sales, we mentioned the lack of status of the salesperson within the organisation, and we commented on how slow SMEs in particular were at taking in new technology. We felt that the status issue was stopping good recruits coming into the profession, and we concluded that if we were able to fix some of those problems, it would assist the economy in enjoying significant growth. We stated:

“Our report identifies a critical shortage of professional salespeople that affects every business, but SMEs in particular. It also highlights a negative attitude in Britain towards selling that is holding the economy back. The government needs to intervene to close the skills gap, and to promote a more businesslike attitude towards selling.”

I mentioned the impact of the pandemic; shortly after that report was published, covid-19 hit, and it caused a revolution in the way that people sell. Our second report, which we published in March 2021, was entitled, “Supercharging Sales: Investing in B2B selling for jobs and growth,” and it looked at the changes that had arisen as a consequence of the pandemic and the lessons that needed to be learned. It made three recommendations—about the need to recognise the importance of B2B selling to the economy, to encourage more entrants into the sales profession at SME level, and to promote better sales skills and greater uptake of digital sales technology.

In our report, we found that the owners of SMEs would need to learn to sell in a new way; no longer would it be suitable to charge up and down the motorway for personal visits. We have seen the adoption of digital technology, but in many cases B2B salespeople have been slow to adapt to that technology. They need to be upskilled, and more of them need to be trained. As an APPG, we called for the Government to tackle the skills shortage; we know that would have a positive impact on the economy.

If businesses embrace a digital landscape and enter a selling revolution, we can grow the economy. We know that digital methods will be important, but when it comes to selling there remains a wide gap between the digital haves—usually big businesses and growth-orientated SMEs—and the digital have-nots, which are usually smaller businesses.

As I have mentioned, SME salespeople have struggled with obstacles that have hindered them from switching smoothly to the digital marketplace. Those obstacles include, in the first instance, a lack of sales skills. Before the pandemic, skilled B2B sellers were in short supply; from March to September 2020, there were 197,000 job postings for B2B sellers, in a profession that numbers only about 540,000 people. We found that the skills deficit was greatest for SMEs, which often do not train their staff.

The second major obstacle to growth was the shortage of management skills. Covid-19 made it urgent for businesses to adjust their sales model, but many business owners were too busy and needed help developing a strategy. The majority of SME owners are yet to adopt efficiency-oriented management practices and do not use customer relationship management software. The software exists, and it needs to be used. In addition, a lack of understanding of sales often leads SME owners to make mistakes when hiring salespeople, because the business owners themselves do not understand the sales process fully.

The third major obstacle that we identified was a shortage of digital skills. We know that the UK is only 12th among OECD member countries for technology adoption. We also know that covid-19 has spurred many salespeople to use more digital tools. However, SMEs have stopped evolving their tech use, while larger companies have carried on. SMEs will not adopt the next wave of sales technology if they do not first adopt the basics, which are about having a good online presence and using cloud computing and CRM software.

We know that jobs and skills are challenges for the UK economy as we exit the pandemic. New skills will help Britain to commercialise its research and development innovations. We know that we are an innovative country and new skills will facilitate overseas trade. However, we have struggled to recruit and train the B2B salespeople that the economy needs, and we need support from the Government in promoting awareness of and respect for business-to-business selling, and in stimulating demand for sales learning. Such Government support would be very welcome in the sector.

Members of the APPG believe that sales should, at some point, be referenced in the curriculum at school, college and university. There should be more work-based qualifications to create pathways into the profession, and the professional body, the Institute of Sales Professionals, has an aspiration to see a chartered professional body. We would like to see B2B given a higher priority by policy makers in skills and education. There are few Government-supported educational programmes for building commercial sales skills for those entering the workforce, and I am afraid that there is little or no discussion of sales in the MBA courses that are run in this country. That contrasts strongly with US universities that provide the same qualification.

We want the Government to use what influence they have to promote awareness of business-to-business selling and stimulate demand for sales learning, and I have a number of asks for the Minister, which I hope he will respond to in his remarks. The all-party group would like to see more on-the-job learning, and more courses and qualifications in professional sales, which could be backed by the Department for Education—I know that the Minister here today is a Business, Energy and Industrial Strategy Minister. We think courses should be eligible for funding under the lifetime skills guarantee. We would like more teachers of sales skills in our further education colleges, and more such teaching in the growth hubs, wherever possible supported by professional people who are actually doing the job. Perhaps there could be more mentoring and support for businesses that are involved in business-to-business sales. Perhaps representatives of the profession could participate in Government and industry advisory groups, as the salesperson is often overlooked.

The all-party group would like to see more apprenticeships. We would like to see the bureaucracy of the Education and Skills Funding Agency cut, with growth hubs offering support to SME owners. We think the Government could also help by setting national targets for the adoption of proven digital technology by SMEs, including cloud computing and customer relationship management software. Let us provide an incentive for businesses to take on that new technology. SMEs will need some support in funding their training needs. We would be happy for there to be financial incentives for SMEs to do that, and we would like to see extra funding for growth hubs to carry out sales courses and peer networking.

My remarks so far have focused primarily on the domestic need for business-to-business selling, but we must also consider the role that professional sales can play in the international landscape. The Government have an export strategy, which was published by the Department for International Trade on 17 November. Its 12-point plan mentions sales five times, and professional sales are involved in almost all of the 12 points. Approximately one third of the UK economy is international trade, and that is about business-to-business commerce. To be successful on the world stage, we need experts who can compete with salespeople from other countries to ensure that our goods and services are bought in preference to others’.

In the aftermath of the UK’s leaving the EU, we have the freedom to trade on our own and in new territories. I know from my business career that new business is not easy to secure, and that certainly is not possible without a competent and skilled team of salespeople. Fulfilling the ambitious trade deals that the Government have put in place will not be possible without those skills. A trade deal is a listing—an entitlement to deal with somebody—but we now need skilled salespeople out in those markets to take advantage of those deals.

As the Government’s priorities shift away from job retention and towards retraining people for the skilled jobs of the future, B2B sales must be a top priority for the UK. There will be massive benefits if we can ensure that SMEs adopt digital sales technology and gain professional skills. The pandemic has presented us with an opportunity to look afresh at difficult economic problems. Much of the cost of upskilling can be borne by employers, but I reiterate our ask for Government action to encourage that training by signalling the importance of sales skills.

Many positive benefits will flow to the UK if we can get businesses to adopt these new skills and gain new abilities. If we can turn around our attitudes and upskill our workforce, business-to-business selling will be a major force enabling us to grow our economy, create jobs and build new markets overseas. The cry should be: “Let’s get out there, and let’s get selling.” I look forward to hearing the Minister’s response.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Lee Rowley)]

It is a pleasure to serve under your chairmanship, Sir Mark. I am grateful for the opportunity to respond. I am also grateful to my hon. Friend the Member for Rugby (Mark Pawsey) for securing this debate so that we can highlight the fantastic work that British industry and businesses do every day throughout the year. The ability to talk about that even for a few minutes is a great opportunity to celebrate their fantastic work.

I congratulate the APPG and my hon. Friend the Member for Rugby, who chairs it, on the work done under his chairmanship and under the chairmanship of the much-missed former Member for Stirling, who we all wish was still in his place. I was at the initial APPG meeting. I admit this was not an area of huge knowledge to me, but the former Member for Stirling was looking for Members to attend and managed to achieve quite a large number at the initial meeting. That was a testament to the former Member’s powers of persuasion and to the continuing ability of my hon. Friend to highlight this important issue.

I was involved in business for most of my career prior to coming to this place five years ago, so I have a little bit of experience in business-to-business selling. I used to be a management consultant and I would try to find somebody else who could do the business-to-business sales because I was not particularly good at it. I also worked in a bank for several years, building processes so that we could sell financial products to businesses. That brought home to me the importance of capable and competent individuals—and they were not easy to find, as my hon. Friend the Member for Rugby has correctly indicated. They have an incredibly difficult skillset, and I am in awe of those people who can walk into a room and sell at the level of technicality, competence and ability that so many B2B and professional salesmen have.

Such a skill takes many years to hone. We have an understanding in government that that skill is difficult to procure and not easily taught. It is often learnt on the job, but it is hugely important. My hon. Friend pointed out the difference between retail sales and business-to-business sales, which are often merged together but should be considered separately because they have very different skillsets. From a BEIS perspective, I assure my hon. Friend that the Department absolutely recognises the importance and value of business-to-business selling in the UK.

We know that the sector has been through a significant challenge, as every sector has, over the past couple of years. The pandemic has brought many difficulties for businesses and sectors all around the country, so I will take this opportunity to thank the sector for its work, its efforts and its contribution to the UK during that difficult time. I affirm that the Government value and wish to continue to support the sector where they can.

We have near full employment and lots of vacancies, but there are challenges regarding the skills that are more difficult to procure and create in the type of selling that we are talking about. In the past couple of years, gaps have appeared or been exacerbated. Covid has taught us that many business activities can be conducted successfully anywhere and that technology can allow us to get past geographical barriers, but ultimately it is the sales and the techniques that are hugely important.

My hon. Friend the Member for Rugby highlighted the international opportunities to go out and sell UK plc if we have the right skillsets in UK businesses to do so. We are proud to have already delivered a trade agreement with the EU, which came into force last year and has been debated many times in this place and beyond. It is the first that the EU has signed that grants tariff-free and quota-free access to its market, ensuring that British businesses can continue to have a strong trading relationship with our European neighbours and build on the skills that we have been talking about. It is the most liberal market access that either party grants to any trading partner, and gives us opportunities to sign new trade deals—the first opportunity in 50 years.

We have already signed trade deals with Japan, Australia and New Zealand, and this gives us the opportunity to use the skills already in place in UK plc and to seek new opportunities as we build that skillset even further. We will continue to support British businesses to be able to make that case all around the world—not just in the EU, but in all the new markets that are opening—through measures such as the 12-point plan, which will support SMEs to manage import controls, and the export support service, which provides a single point of entry and support for businesses exporting to Europe.

We have included a chapter dedicated to protecting the interests of SMEs in the trade and co-operation agreement, and have various helplines for customs and international trade. All those measures seek to give our businesses and salespeople, and the B2B people who are selling in and around these markets, the tools and the ability to help them with the knowledge and expertise to do what they do best—to find business and help UK businesses grow.

I turn to the importance of skills and productivity in sales. My hon. Friend the Member for Rugby is right to highlight the maxim that nothing gets made until a salesperson ultimately takes an order. There is the challenge of building skills in those who are just coming into the workforce, and of augmenting skills for those who are already there.

B2B sales can be a dynamic and lucrative business activity, which can attract young talent. It is for employers, ultimately, to convey the benefits of those roles for prospective workers. The Government are keen to highlight the opportunities in the B2B market, and the abilities and fantastic capabilities in UK plc. As Minister for industry, I look forward to doing more where I can, and I know that my colleagues elsewhere, in BEIS and beyond, are also keen to do so.

[Mark Pawsey]

Does the Minister think that having a chartered status for sales professionals would raise the esteem of the sector, and encourage more bright and capable people to consider it as a career option?

[Lee Rowley]

That is an interesting question, and one that many industries are debating. There is huge value in chartered status and the accreditation that it provides. At the same time, we must ensure that in creating those things—I am sure it will not be the case in this sector—barriers to entry are not raised at the same time, as that could exacerbate some of the challenges that my hon. Friend has rightly highlighted throughout the debate.

In the few moments I have left, I will touch on productivity and highlight the importance of the schemes already in place, such as Help to Grow: Digital and Help to Grow: Management. Help to Grow: Digital provides businesses with free, impartial online support and guidance on how the digital technology that my hon. Friend rightly highlights can boost their performance. Up to 100,000 eligible businesses can take advantage of discounts of up to 50%, worth up to £5,000, to buy some of the basic productivity-enhancing tools highlighted by my hon. Friend, such as customer relationship management and accountancy software.

On top of that, Help to Grow: Digital enables people to consider the best way, from an e-commerce perspective, to help businesses make the best of selling online. That will be useful for many people, but does not take away from the important point—highlighted by my hon. Friend the Member for Rugby, and the hon. Member for Strangford (Jim Shannon)—about people understanding what they are selling and having the capability, competence and technical knowledge to do so.

This has been a hugely important, if quick, debate. I am grateful to my hon. Friend the Member for Rugby and the APPG for continuing their important work in this sector. There are parts of commerce that do not often speak as loudly as others; they just get on with the job and do brilliant work, day in and day out. This is one of those examples—people who are really pushing UK plc to do more. They are working through how we can grow, do better, and collectively take on more jobs. I congratulate the sector on all the work it has quietly done over so many years; as the Minister for industry, I offer my personal support.

If it is helpful to my hon. Friend, I am happy to talk to the APPG on a different occasion, in more detail, about how we can work together on this issue. I am keen, if we can, to do a visit—or something along those lines—so that we can see, publicise and highlight all the great work in this sector, which has done so much over recent years to put UK plc in such a good position, and will continue to do so in the years ahead.

Question put and agreed to.

Oral Answers to Questions

Mark Pawsey Excerpts

Tuesday 29th March 2022 Commons Chamber

[Lee Rowley]

The hon. Lady is right to highlight the importance of a strong manufacturing base, which is one reason why we have spent so much time supporting and having active discussions with manufacturing. The challenges around Liberty are well known, and I have also visited Liberty sites in recent weeks and months. I am happy to meet her to talk further.

[Mark Pawsey (Rugby) (Con)]

Manufacturers will open their factory doors on 7 July in a UK-wide open house, which is an opportunity to showcase the diversity of the sector, the range of highly skilled jobs on offer and the amazing opportunities for reskilling and career development within UK manufacturing. Will the Minister join me in supporting National Manufacturing Day 2022?

[Lee Rowley]

I could hardly say no. I look forward to doing that and visiting many great manufacturers across the country. We are highlighting the brilliant work of the sector, and we continue to champion it as a vital part of the UK economy.