Oral Answers to Questions

Nusrat Ghani Excerpts

Thursday 7th March 2024 Commons Chamber

[Feryal Clark (Enfield North) (Lab)]

6. What steps she is taking to support small and medium-sized businesses to export.

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

My Department continues to help small and medium-sized enterprises to grow overseas and export to the world, especially this year—the year of the SME. Businesses can access a digital self-serve offer and a wide network of support, including trade advisers, export champions, the UK Export Academy, our international markets network and UK Export Finance. Last year, UK Export Finance provided £6.5 billion to exporters of all sizes, with SMEs comprising a record 84% of those supported directly with a product.

[Gerald Jones]

SMEs in Merthyr Tydfil and Rhymney tell me of their frustrations around exporting goods and now the Government have scrapped the trade show programme, which was set up to support British businesses to attend events and win overseas orders. Will the Minister tell the House and the thousands of businesses that rely on that vital support when there will be a replacement?

[Ms Ghani]

UK exports are increasing. Using current prices, they are up by £21 billion compared with 2023. The UK trade show was a pilot programme that did not yield the successes we thought it would, so we have other schemes in place, including the UK Export Academy, international trade advisers, Help to Grow and the export support service. Focusing on Wales, we will soon be appointing a new international trade adviser to help SMEs.

[Feryal Clark]

We are lucky that Enfield North has quite a lot of small and medium-sized businesses, but they are suffering because of the cost of spiralling bills and no Government support. Does the Minister think it is the lack of a Government industrial strategy or the lack of individual support for exporters that is most holding our businesses back?

[Ms Ghani]

That is an extraordinary statement, because in the hon. Lady’s constituency the greatest level of exports is from professional and business services, and those exports are increasing not only to the EU but to countries outside the EU. That is the reality on the ground, so our strategy is working. UK exports were £859 billion in 2023—a figure that has gone up, not down, by £21 billion. The UK is the second biggest services exporter in the world—she should be proud of that because many such businesses are in her constituency. Those exports have increased to 54% from 48%, so there is good news, but we are keen to do more.

[Mr Speaker]

I call the shadow Minister.

[Gareth Thomas (Harrow West) (Lab/Co-op)]

The Office for Budget Responsibility said yesterday that exports, including from SMEs, will fall even more than expected this year; growth in exports will be less than 1% in each of the next three years; and other countries will not be hit the same way. There have been cuts in the funding to help businesses start exporting and there has been no deal with the United States, no Diwali deal with India, and no veterinary agreement with the EU to cut red tape and slash costs. What does the Minister think is the best explanation for the Government’s dismal performance on exports so far?

[Ms Ghani]

We can get the best explanation from looking at the data behind what the hon. Gentleman set out. He obviously omitted the international reality. In the same report, the OBR referenced the “sluggish growth” in “global economies” and mentioned that British goods and services will outperform, on average, G7 countries. Those are the facts on the ground. When it comes to exports, we are exporting not only into the EU but outside the EU. As I said earlier, professional and business services are increasing outside the EU by 19%. We have substantial programmes in place to help small and medium-sized enterprises. We are keen to learn and do as much work as we can. There will be far more work coming through as this is the year of the SME.

[Mr Speaker]

I call the SNP spokesperson.

[Ms Ghani]

There has not really been a loss in the market share. I have talked about what is happening internationally. We appreciate that small and medium-sized enterprises may not have the resources they need to export into new markets. That is why we have the UK Export Academy, international trade advisers, Help to Grow and the export support service. We are also looking at what trade barriers we can break down and bust to make it even easier for SMEs to access new markets through the trade deals secured by the Secretary of State.

[Alex Cunningham (Stockton North) (Lab)]

2. What steps she is taking to help support the steel industry.

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

Our commitment to the UK steel sector is clear. The Government are contributing up to £500 million in a joint investment with Tata Steel. We are in talks with British Steel following our generous offers of support. We have delivered more than £730 million in energy costs relief since 2013, and the British industry supercharger is coming soon. We updated our procurement policy note to ensure we are procuring more in the UK, and we are trying to do everything we can to continue to support the steel sector.

[Alex Cunningham]

We are all disappointed that the Government, having abandoned Teesside steel several years ago, are now ready to give up on primary steelmaking in the UK and to rely on recycled material utilising electric arc furnaces. I am pleased to hear that Teesside is pencilled in for one of them, but not so pleased that there have been attempts locally to circumvent proper procedures to secure planning consent. Will the Minister look into that? More importantly, will she confirm that the Government have a final copper-bottomed agreement with the industry that the furnace will definitely be built on Teesside?

[Ms Ghani]

A number of the issues that the hon. Gentleman raises are fundamentally locally. We work closely with Mayor Ben Houchen, who has done a remarkable amount of work for his part of the country. The reality is that the steel sector was placed in an area of uncertainty for some time. We were able to provide support for Tata, which has ensured that the steelworks continue at Port Talbot. We provided the largest grant ever made available to steel, and we are now in conversation with British Steel. That is what it means to have a long- term steel strategy to ensure that steelmaking continues here in the UK.

[Craig Tracey (North Warwickshire) (Con)]

3. What steps her Department is taking to support small and medium-sized enterprises through the Small Business Council.

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[Graham Stringer (Blackley and Broughton) (Lab)]

13. If she will make an assessment of the potential impact of infrastructure on levels of business investment.

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

High-quality infrastructure is crucial for delivering economic growth. To quote a previous Prime Minister:

“You and I come by road and rail, but economists travel on infrastructure.”

We know how important investment is. The whole House will agree that the UK is the leading light when it comes to offshore wind farms, where we are already securing investment.

Let me point to a few examples of further investment: Nissan is investing £2 billion in new electric car models in the UK, Microsoft and Google have announced data centres worth over £3 billion, and my Secretary of State oversaw the global investment summit, unlocking £30 billion of investment. In fact, since 2010 we have secured more inward investment than any other country in Europe. Over the last few years, we have received the third highest amount in the world, after the United States and China. I could go on, Mr Speaker, but I might test your patience.

[Matt Western]

That is all very well, but the Government’s decision to defer the banning of petrol and diesel vehicles until 2035 has led to huge uncertainty among consumers and investors, as the Minister well knows. Compared with other countries, it seems that the Government lack ambition when it comes to investment in electric vehicle infrastructure. France, for example, will have something like 400,000 installations by 2030—50% more than the UK. What plans does the Minister have to ensure that the UK’s investment keeps up with our competitors and meets the growing demand for electric vehicles?

[Ms Ghani]

As the Minister for the auto sector, I am very keen to ensure that we are breaking bad memes around the electric vehicle sector. We are doing a huge amount of work in this space. At the moment, we have 53,600 public charge points. We have a rapid charging fund and a local electric vehicle infrastructure fund— I am sure that the hon. Gentleman’s local authority will want to tap into those. The Department for Transport is working with local authorities to ensure that they have charging strategies. We have a £381 million local EV infrastructure fund, which will deliver tens of thousands more charging points and support for on-street residential charge points, too. It is really important that local authorities are aware of the funds available, and I suggest that the hon. Gentleman get in touch with the DFT to support the installation of charging points in his constituency.

[Graham Stringer]

I do not think that any hon. or right hon. Member could disagree in general terms with the Minister’s reply. It would have been a more interesting reply if she had made an assessment of the reduction in investment since the cancellation of High Speed 2, because there is no doubt, as she said, that investment in rail infrastructure leads to business investment all along the route. We can see that in Birmingham and Manchester, and we can now see the lack of new investment because of the cancellation. Was it not a mistake to swap that investment, which would have led to many new high-technology jobs, for money to replace what has been taken from local government to fill potholes?

[Ms Ghani]

In my previous response, I wanted to expose the opportunities and grants that are available to ensure that charging points are criss-crossing the country. Often parliamentarians are not aware of all the great work we are doing.

On HS2, just last week we announced the extra support that will be made available for local transport plans, which cover everything including rail, road and even buses and, of course, potholes. Network Rail has received £36 billion from the Government to improve transport in every region of the UK. Just last week, we announced an extra £4.7 billion of additional funding for local transport authorities in the north and midlands. We want to make sure that decisions on transport are made locally and that the infrastructure is needed and wanted by local communities, which is why we are making sure that the funds from HS2 are being made available.

--- Later in debate ---

[Sir John Whittingdale (Maldon) (Con)]

T2. May I commend to my right hon. Friend the recent paper on industrial policy by Policy Exchange and its conclusion that we should avoid entering a subsidy race and should instead concentrate on broad, long-term measures supporting investment right across all industries?

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

I am grateful to my right hon. Friend for highlighting the Policy Exchange report, and I agree that the UK should not enter a subsidy race with other industrial nations. We already have our advanced manufacturing plan, which, obviously, focuses on advanced manufacturing, and the Chancellor is also looking at green industries, life sciences, creative industries and digital technology. Those are all areas in which we know we can grow as well. I have spoken about the record levels of investment we get into the UK. Last autumn, when the Chancellor announced full expensing, more than 200 business leaders and the CBI said that that was a game changer and the single most transformative thing we could do to fire up the British economy. We will continue to be competitive and ensure that we continue to be the third country, after the USA and China, in securing inward investment—of course, beating our European counterparts.

[Mr Speaker]

I call the shadow Secretary of State.

--- Later in debate ---

[Stephen Kinnock (Aberavon) (Lab)]

I have repeatedly asked Ministers whether any strings were attached to the £500 million of taxpayers’ money that was given to Tata Steel, particularly with regard to job guarantees. I have not had a straight answer, so I will try again today. Can the Secretary of State please confirm whether any conditionality was attached to the £500 million, or did the Government simply buy Tata Steel’s bluff about closure, and give it £500 million so that we could make 2,800 people redundant?

[Ms Ghani]

The hon. Gentleman attends the transition board meetings, so he knows that his question is not really relevant to what he is trying to get to the bottom of. We provided £500 million to ensure that steel making continues in Port Talbot. Tata made it clear that it was uneconomic and unsustainable to continue with steel making, so the support that we have given will ensure that north of 5,000 jobs will continue in Port Talbot, and it will support supply chains. On top of that, £100 million has been provided to the transition board, so that its members, including the hon. Gentleman, the unions and all the local representatives, can ensure that local people who need to go through transition get the support that they need. Without that support, there would not be any future steel making at Port Talbot.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

When will the Secretary of State wake up to the huge potential of universities to tackle all the problems in society, including climate change? Will she come to Huddersfield, which has one of the best universities in the country? It is working with local businesses to make the future safe for our country.