Oral Answers to Questions

Nusrat Ghani Excerpts

Thursday 23rd March 2023 Commons Chamber

[Mrs Sheryll Murray (South East Cornwall) (Con)]

3. What steps her Department is taking to help protect critical minerals supply chains.

[The Minister of State, Department for Business and Trade (Ms Nusrat Ghani)]

I wish everybody a happy Ramadan on our first day of fasting.

We are moving towards a world powered by critical minerals. We need lithium, cobalt and graphite to make batteries for electric cars, and we need silicon and tin for our electronics. I am pleased that we recently published our “Critical Minerals Refresh.” This strategy will accelerate the growth of UK capabilities, collaborate with international partners and enhance international markets.

[Mrs Murray]

Cornwall is known for its mining—some people even define a mine as a hole in the ground with a Cornishman at the bottom. What efforts is the Department making to ensure that we make the most of our home-grown mineral security?

[Ms Ghani]

I am so grateful to my hon. Friend for reminding the House of Cornwall’s mining heritage and the world-renowned Camborne School of Mines. This is why we are backing Cornish lithium and geothermal engineering, through the Getting Building fund and the automotive transformation fund, which are collaborating to build a zero-carbon lithium extraction plant at an existing site in Cornwall. I very much look forward to visiting it in the near future.

[Mr Speaker]

I call the Chair of the Select Committee.

[Darren Jones (Bristol North West) (Lab)]

The Minister knows that the steel industry is an important customer for critical minerals in this country, so will she confirm for the House the status of the Steel Council in her Department and whether it is actively meeting?

[Ms Ghani]

I served with the hon. Gentleman on the Business, Energy and Industrial Strategy Committee for many years. He will be very familiar with the fact that I meet the steel sector and the unions, and I have all the regular meetings, including those with the all-party parliamentary group for steel and metal related industries, which is chaired by the hon. Member for Aberavon (Stephen Kinnock). The meetings are most definitely taking place.

[Mr Speaker]

I call the shadow Minister.

[Nick Thomas-Symonds (Torfaen) (Lab)]

I join the Minister in wishing the whole House a happy Ramadan.

It is great finally to see the critical minerals strategy, but, as the Minister indicated in her answer, long-term, durable access to minerals is also dependent on our wider strategic trade policy. The Government have failed in their objective of ensuring that 80% of our trade is conducted under free trade agreements. In addition, the Office for Budget Responsibility says that our exports are projected to fall by 6.6% next year. How does she propose to integrate her critical minerals strategy with our wider trade policy? How much will that 6.6% fall in exports cost the UK economy in cash terms?

[Ms Ghani]

I only recently published the critical minerals refresh and I was expecting some sort of positive response, given how it is integrated internationally; it deals with the threats of China and works with the Inflation Reduction Act 2022 in the United States. But of course the Opposition use any reason to dampen a positive step forward for all of our manufacturing sector across the country. UK exports to Europe amounted to £386.9 billion in the four quarters to the end of 2022, which was an increase of 25%—I think that is an increase, not a decrease.

[Mick Whitley (Birkenhead) (Lab)]

14. If she will take steps to publish a new industrial strategy.

[The Minister of State, Department for Business and Trade (Ms Nusrat Ghani)]

The Prime Minister has made it clear that growing the economy and creating better-paid jobs is one of our top priorities, and the Government are working with industry across the UK to achieve that. We have set out clear plans for prioritising technology sectors, advanced manufacturing, financial services and creative industries, and this includes our investor road maps. In particular, the Chancellor has announced 12 investment zones across the UK, which could benefit from £80 million of interventions over the next five years.

[Mary Glindon]

The Government have not published an industrial strategy since 2017 and, as a result, the UK now has the lowest level of business investment in the G7. So what is the Minister’s plan to encourage business investment in the UK, given that the Government have not even published an industrial strategy?

[Ms Ghani]

I think the hon. Lady has misunderstood exactly what we are doing. We have industrial strategies, be it for the automotive sector, the aviation sector, the maritime sector, or science and tech—that one was published just yesterday. This is not just about publishing strategies; it is also about delivering, which is what we are cracking on with and doing. As for UK investment, we are the leading country for start-up capital outside the United States, and just a few weeks ago we attracted £20 billion into tech—this is twice as much as France and Germany.

[Mick Whitley]

While the EU and the US are investing billions in accelerating their transition to net zero, including through the Inflation Reduction Act, the lack of a robust green industrial strategy in Britain is leaving us stranded at the back of the pack. Does the Minister share my frustration that the Chancellor’s Budget did so little to set out a convincing strategy for green growth? Do the Government intend to make the public wait for Labour to win the next general election before a world-leading green industrial strategy that drives private investment in green industries and establishes the UK as a clean energy superpower is brought before this House?

[Ms Ghani]

I am sorry to dampen the hon. Gentleman’s ambitions about winning the next general election, but we do indeed have a strategy to deal with decarbonising our economy. We are supporting research and development to help decrease our reliance on gas and electricity and deal with long-term energy security: we have £380 million for the offshore wind sector, £385 million for nuclear R&D, and £120 million for future nuclear enabling. We have a green industrial strategy and we are keen to ensure that we deliver it right across the country, for all of our communities.

[Mr Speaker]

I call the shadow Minister.

[Bill Esterson (Sefton Central) (Lab)]

People in Scunthorpe, Rotherham and Port Talbot know how important steel is for their communities. We Labour Members understand how important it is, for communities and for the green transition. The UK is the only G20 country in which steel production is falling, but when asked about the survival of this strategically important sector, the Business Secretary said:

“Nothing is ever a given.”

Is that because the British steel industry is not safe in her hands?

[Ms Ghani]

I do not know where the hon. Member got that quote from, but the British steel industry is very safe in our hands. Let me explain why. There has been over £800 million of support for energy costs, and over £1.5 billion to support competitive funds to ensure that the sector can decarbonise. We have done a huge amount of work with our steel sector. Colleagues from across the House will agree that in every meeting, whether it is with the unions or the sector, we are on the side of the steel sector and steelworkers, including when challenging commercial decisions are taken.

[Marion Fellows (Motherwell and Wishaw) (SNP)]

5. What steps she is taking to support the post office network.

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[David Duguid (Banff and Buchan) (Con)]

13. What steps she is taking with Cabinet colleagues to help support energy-intensive industries.

[The Minister of State, Department for Business and Trade (Ms Nusrat Ghani)]

There has been support to the value of about £18 billion for businesses to help them with their energy bills, and we are determined to secure the future for our energy-intensive industries and to protect jobs. To support those most at risk of carbon leakage, the Government have announced the British industry supercharger, to support those most exposed to the cost of electricity. Those measures will bring the energy costs of the UK’s energy-intensive industries in line with those charged across the world’s major economies.

[Scott Benton]

Many of the tourism and leisure businesses in Blackpool are energy-intensive, not least the world-famous illuminations and pleasure beach, which now pay hundreds of thousands of pounds more for their energy than previously. Will the Minister meet me to discuss the specific challenges around energy consumption facing the tourism industry, ahead of a busy summer season?

[Ms Ghani]

Once again, my hon. Friend is a stout campaigner for his constituency, and for the tourism and leisure businesses in Blackpool. He will know that the decision about which businesses fall within the EII scheme is for the Treasury; I am not sure whether the £63 million for leisure centres falls within that catchment or not, so of course, I will meet with my hon. Friend to make sure he has the absolute clarity that he needs. The EII relief scheme is in place to support the most energy-intensive industries, but let me sit down with him and work out whether that industry falls within that category.

[David Duguid]

The Government’s support for the energy costs of businesses in my constituency has been most welcome. As the Minister will know, fishing is a key industry there, so I am particularly pleased that the processing and preserving of fish, crustaceans and molluscs is included in the energy and trade intensive industries scheme. Representatives of the Scotch Whisky Association tell me that they are surprised not to be included in that scheme—especially as manufacturers of wine, cider and beer are—despite falling within the top 20% of sectors by energy intensity and the top 40% by trade intensity. Will the Minister meet me and representatives of that industry to discuss this apparent anomaly?

[Ms Ghani]

My hon. Friend raises the fishing industry. There are two Back-Bench colleagues present who are huge champions of that industry—I dare not say anything further—and I know that my hon. Friend is a huge promoter of Scottish products, including Scottish whisky. I look forward to a tour post Ramadan at some point soon.

The decision about who falls within the EII scheme was taken by the Treasury. I have been reading about the work that my hon. Friend has been doing on behalf of the sector, and I counter-propose a meeting that involves Treasury officials and Ministers. If my hon. Friend is happy with that, I am more than happy to set it up.

[Stephen Kinnock (Aberavon) (Lab)]

I am honoured to be the chair of the all-party parliamentary group for steel and metal related industries, and I thank the Secretary of State to agreeing to come and meet us—I am very much looking forward to that discussion. However, may I raise again the issue of her Sky interview in which she said, or certainly strongly implied, that it is not a given that we should have a steel industry in this country? Given the rise of authoritarian regimes around the world, the massive role that steel plays in providing good jobs that people can raise a family on and the vital role it plays in the transition to a decarbonised economy, may I invite the Secretary of State to come to the Dispatch Box and clarify her position—that steel is, in fact, a given in the United Kingdom?

[Ms Ghani]

Unfortunately, I have to come to the Dispatch Box—that is just the way it works—so I disappoint the hon. Member by not being the Secretary of State. However, he knows that steel is absolutely key to our sovereignty and security and for the resilience of all our sectors. The Secretary of State has mentioned repeatedly that the quotes that are being repeated in the Chamber are a misrepresentation. The commitment to the sector continues. It was in place for years: it is why we had £800 million of support for the energy sector, and it is why we have a £1.5 billion competitive fund to help the sector decarbonise.

[David Linden (Glasgow East) (SNP)]

Small businesses such as coffee shops and cafés in our high streets are the lifeblood of a local economy—one example would be Jeanie’s Coffee Shop in Baillieston. Running a kitchen all day is an incredibly intensive process for energy, and John Devaney was telling me last week how that business’s energy bills have gone up. As the Minister is being so generous with other meetings, would she be willing to meet me to look at how we can support businesses such as Jeanie’s in Baillieston to ensure that they get through the cost of living crisis?

[Ms Ghani]

I will be full of meetings, but I defer to the Minister with responsibility for small businesses, who is more than happy to have that meeting. We have provided billions of pounds of support for businesses to deal with their energy costs, and we have the new supercharger in place. We lobby the Treasury long and hard, and we are more than happy to represent businesses small and large.

[Sir Desmond Swayne (New Forest West) (Con)]

12. If she will make an estimate of the number of UK businesses that chose to list on the New York stock exchange in the last three years.

[The Minister of State, Department for Business and Trade (Ms Nusrat Ghani)]

The UK is the most internationally connected financial centre in the world. We continue to attract some of the most innovative and largest companies. More than £17 billion of capital was raised for firms in the UK—a 15-year high—with over 120 deals completed. The UK is taking forward ambitious reforms to rules governing its capital markets, building on our continued success as Europe’s leading—globally, the second largest—hub for investment.

[Sir Desmond Swayne]

Is Government debt crowding out productive investment?

[Ms Ghani]

My right hon. Friend is always so succinct in his questions, and there is often a huge amount of sense behind it. I fundamentally agree that we need to collaborate with business and industry. [Interruption.] Forgive me, Mr Speaker. The response I want to give to my right hon. Friend’s very good question is that, as he will be pleased to know, there is the Lord Hill listing review and the Sir Douglas Flint review, and in particular the Edinburgh reforms, which will be considering competitiveness and will, I think, provide some sort of answer to his question. It would be remiss of me—because I know that he is particularly interested in this—not to mention that it is 50 years since women were first admitted to the floor of the New York stock exchange after 170 years of just men.

[Dr Lisa Cameron (East Kilbride, Strathaven and Lesmahagow) (SNP)]

15. What steps her Department is taking to help support the fashion and textile industry. [R]

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[Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)]

The automotive industry is a jewel in the crown of British manufacturing, but to keep that jewel we need to be building batteries for electric vehicles in the UK. So far we have one gigafactory up and running, while Germany already has 10 times our capacity. Alarm bells are ringing across the sector, and we recently had disappointing news with Ford announcing job cuts in Essex. The Faraday Institution estimates that the UK needs 10 battery factories by 2040 to retain our car industry. Does the Secretary of State agree with that assessment? If she does, how and when will she publish a clear plan for how the Government intend to hit that target?

[The Minister of State, Department for Business and Trade (Ms Nusrat Ghani)]

We have a strategy in place to support the automotive industry, with £1.3 billion of innovative projects, including the Faraday factory challenge —[Interruption.] I have a response to the question. The hon. Gentleman will be pleased to know that we have investment in place, so let me continue. With a budget of £544 million, the Driving the Electric Revolution scheme includes nearly £80 million of Government investment through the Innovate UK programme. I suggest that the Opposition Front Benchers flick through my “Critical Minerals Refresh” document, because there is a fantastic page on UK battery supply chains—not just the automotive transformation fund but the Envision AESC announcement, which is worth £1 billion for the north-east electric vehicle hub. Perhaps they will read it before the next Question Time, so that they have a tricker question for us to deal with.

[Mrs Sheryll Murray (South East Cornwall) (Con)]

T2. One up-and-coming internet provider in my constituency understands from Building Digital UK that the next roll-out will create a single cross-Devon and Cornwall procurement contract. That will be available only to companies that already have massive turnover, thereby blocking smaller, more agile companies that may be able to deliver contracts faster. Will the Minister review that urgently, if necessary working with others?