Oral Answers to Questions

Matt Western Excerpts

Tuesday 11th February 2020 Commons Chamber

The Chancellor of the Exchequer was asked—

[Matt Western (Warwick and Leamington) (Lab)]

1. What assessment the Government have made of the potential effect on the (a) manufacturing sector and (b) economy of the UK not having access to the EU single market.

[The Chancellor of the Exchequer (Sajid Javid)]

We want a relationship with the EU that is based on friendly co-operation between sovereign equals and is centred on free trade. The economy has grown every year since 2010. Employment is at a record high and wage growth has outpaced inflation for 17 consecutive months. The upcoming Budget will set out ambitious plans to level up across the UK and usher in a decade of renewal.

[Matt Western]

The Chancellor will be aware that the CBI has spoken out and claimed that business is not ready for Brexit, which has already cost businesses billions of pounds in planning. But the advice is unclear. I spoke to the Federation of Small Businesses and to several small businesses last night, and they are extremely concerned that neither the infrastructure nor the advice is in place.

[Sajid Javid]

I can assure the hon. Gentleman that we are working very closely with individual businesses and their representative groups. The one thing they have certainly welcomed in the past few weeks is that we have ended the uncertainty around Brexit by actually leaving the European Union, as we said we would. We will be working very closely with business as we forge that new free trade agreement, which I know we will do.

--- Later in debate ---

[Sajid Javid]

My hon. Friend is right to raise this matter. The Government have already put in place the gigabit broadband voucher scheme and the rural gigabit connectivity scheme, which is available to small and medium-sized enterprises and gives support of up to £3,500 per company. She will also be pleased to know that the Government have committed £5 billion to invest in new infrastructure to ensure that every part of our country has the best possible broadband.

[Matt Western (Warwick and Leamington) (Lab)]

T8. Will the Chancellor ensure, in the Budget in March, that the automotive manufacturing sector gets the support it requires? He will know that there was a decline of 14% in our manufacturing production last year, which represents a big hit to the Treasury. Will he put in place the support to ensure a transition from fossil fuels, so that we can still produce vehicles such as diesel-powered units in good numbers while supporting the switch to electric vehicles?

[Mr Simon Clarke]

I thank the hon. Gentleman for his question. Tomorrow I am attending a roundtable at 11 Downing Street with representatives of the advanced manufacturing industry, and we are determined to take their views into account as we make this transition. We are supporting the industry through initiatives such as the Advanced Propulsion Centre and the Faraday battery challenge, and we are determined to ensure that the sector evolves in a way that boosts our growth prospects as we decarbonise.