Harland & Wolff

Nusrat Ghani Excerpts

Thursday 19th December 2024 Commons Chamber

[The Secretary of State for Business and Trade (Jonathan Reynolds)]

With your permission, Madam Deputy Speaker, I shall make a statement on the UK shipbuilding firm Harland & Wolff. I am pleased to inform the House that, subject to approvals, a commercial deal has been reached that will protect jobs, drive investment and secure the future of the workforce. The deal will see Navantia UK, a specialist in shipbuilding, purchase all of Harland & Wolff’s shipyards.

As right hon. and hon. Members will know, Harland & Wolff is a major employer in Belfast, with additional important yards at Arnish and Methil in Scotland and Appledore in Devon. For more than 150 years, the firm has built famous vessels for notable shipping organisations and companies, including the Royal Navy, the Royal Mail and the White Star Line. This industry-led deal, which we expect to complete shortly, will secure all four of Harland & Wolff’s shipyards, protecting around 1,000 jobs right across the UK. I hope that this announcement will come as some relief to Harland & Wolff’s employees. I realise that this has been a deeply worrying time for them, and for everyone affected by the continued speculation over the firm’s future. I welcome Navantia UK’s intention to work closely with the relevant unions to protect workers’ existing terms and conditions. That is important for the hard-working employees and communities who have served the firm over many years.

I was first informed that Harland & Wolff was in serious financial difficulty on day one of the new Government. As the previous Government had open-book arrangements with the company, it was clear that the firm had significant and unsustainable debts. Members will be aware that, at that point, Harland & Wolff was seeking a Government guarantee or liquidity loan. Had that occurred, the British taxpayer would have been put at significant risk of losing millions of pounds, without the safeguarding of any yards, jobs or ships. I believe that the possibility of the Government providing such a guarantee or loan, which was much speculated on in the press, was preventing a market-based solution. The former Government’s inability to make a decision left the yards and the workforce in limbo. That is why I made it clear in my first weeks in this job that no taxpayer guarantee or loan would be provided. I was dismayed that when I did so Conservative Members opposed that, knowing as they did that with a guarantee or loan there stood a significant risk of losing an eye-watering amount of taxpayers’ money. That was deeply irresponsible.

Crucially, the deal that has been agreed will secure the delivery of the fleet solid support contract of the Ministry of Defence. The Government have worked closely with Navantia UK on the future of the FSS programme. We have agreed the absolute minimum of changes to the contract to ensure its continued delivery. Navantia UK is the prime contractor of the Team Resolute consortium, which is charged with building three logistics support vessels for the Royal Navy, and it will maintain the required portion of UK-only build as part of this deal. It is also worth saying that FSS is a vital component of the UK carrier strike capability, providing munitions, spares and stores. At a time when strategic alignment with our NATO allies is more critical than ever, the Government fully endorse this deal, which will also see Navantia UK invest significantly on commercial terms in Harland & Wolff shipyards.

Anyone familiar with Navantia UK will know that the firm boasts strong expertise in naval shipbuilding. I am pleased that, thanks to this agreement, it will continue to bring the next generation of technology to its operations here in the UK. This is quite simply a good deal for the Harland & Wolff shipyards, a good deal for its employees, and a good deal for British shipbuilding. It provides the best opportunity to sustain our essential sovereign shipbuilding capacity and capability, now and over the long term. Defence is at the heart of the industrial strategy that we have identified. Defence is one of our eight growth-driving sectors of the UK economy. That industrial strategy is unreservedly and unashamedly pro-business, engaging on complex issues that are currently barriers to growth and investment. National security is one of the foundations of our plan for change. Without it, we cannot deliver on our milestones to raise living standards across the UK, with good, skilled, productive jobs like those at Harland & Wolff.

UK shipbuilding alone supports some 42,500 jobs nationwide and adds £2.4 billion to the economy every single year. We recognise how important it is, as a vital pillar of our civil and defence industrial base. That is why my Department, together with the Ministry of Defence and the National Shipbuilding Office, is doing everything that we can to bolster our world-class shipbuilding industry. That includes the significant progress that we are making on key procurement programmes. We have a major contract with BAE Systems, which has increased the order from three to eight Type 26 anti-submarine warfare frigates on the Clyde, and a contract with Babcock for five Type 31 general purpose frigates at Rosyth. Those projects have already brought significant recapitalisation investment to shipyards throughout the UK, and there are further procurements to be won, ranging from Border Force and local councils to marine in-port service vessels at His Majesty’s naval bases.

The Government are absolutely committed to supporting vibrant, growing and successful shipbuilding and fabrication industries across the country, and I pay tribute to the skilled, diligent workforces who have made these industries what they are today. Thanks to the deal that has been announced, workers in Belfast, Arnish, Methil, Appledore and right across the country can be confident that the Government are squarely behind them, that UK ship- building is secure, and that together, as a United Kingdom, we will lead the sector into a better future. I hope that all workers in all four yards are now able to enjoy this Christmas with their families, as they should. I commend this statement to the House.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the shadow Secretary of State.

[Andrew Griffith (Arundel and South Downs) (Con)]

I thank the Secretary of State for an advance copy of his statement. The famous yellow gantry of Harland & Wolff stands tall, not only on the skyline of Belfast but in the history of our nation. It is difficult to overstate what Harland & Wolff means to people in the communities of Belfast, Appledore, Arnish and Methil. Extended families across the country will welcome today’s confirmation that the shipbuilding contract that we awarded in government will now proceed. There remain, however, many unanswered questions, which I would be grateful if the Secretary of State could answer. If he cannot answer them at the Dispatch Box today, I would be grateful if he or the Defence Secretary would write in the coming days.

First, at a time of enormous geopolitical uncertainty, can the Secretary of State confirm that there will be no change to the in-service date of the three fleet solid support ships, with the first ship entering service as expected in the fourth quarter of 2028? Secondly, what funding or commitment, if any, has been provided by any part of the Government to Navantia to secure this finalised deal? If so, which budget will that be appropriated from? Has he received state aid clearance for the transaction and, if not, could he clarify the process by which that will now be obtained?

The Secretary of State said in his statement that the Department has agreed the

“absolute minimum of changes to the contract,”

but the statement provides absolutely nothing whatsoever as to what that actually conceals. Can he guarantee, as Navantia promised as part of its original bid for the contract, that no less than 60% of the whole supply chain activity will take place in the UK? Will he confirm that there are no additional work packages beyond those originally envisaged moving from Belfast or anywhere in the UK to Puerto Real in Cádiz? Above all, will he assure the workers and their families who are watching that the final assembly and systems integration, which is where much of the high-value work sits for all three of those vital ships, will take place in Belfast, rather than in Navantia’s parent shipyards in Spain?

The Secretary of State will appreciate that it is sometimes hard, though one tries, to take him at his word after the number of impacts on business over the past few months. The wider context—though welcome in respect of this particular contract and these defence jobs—is the large-scale uncertainty that our defence companies, contractors, workers and employees face about the timetable for the Government to reach 2.5% on defence spending. They do not have the certainty that Harland & Wolff workers now do this Christmas. We do not even have a timeline for a timeline as to when that 2.5% will be hit, and we have seen a degree of equivocation on exactly when the strategic defence review will be published. Again, I would be grateful if the Secretary of State clarified that or if a colleague wrote to me.

It is, at the end of the day, action not words. We welcome this deal for Harland & Wolff and the certainty that it will provide to workers and their families, and I thank the Department officials for their work on that, but there are still many questions to be answered.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the Secretary of State. Having served in his Department, I too will be paying close attention to the answer.

[Jonathan Reynolds]

I agree with the shadow Secretary of State on the iconic nature of this business; its role in British history and in the community, particularly in Belfast; and the esteem in which it is held. I do feel he could have thanked us for cleaning up another mess that the previous Government left us, although perhaps that is too much to ask. After all, they could have made the decisions to allow the market-based solution with support from Government that we have been able to achieve. Despite those caveats, I welcome the fact that he welcomed the news and recognised it as a substantial good news story for many workers as we go into Christmas and for the next years.

I turn to the hon. Gentleman’s specific questions. On the delivery of the fleet solid support contract, the issues that the previous Government left us may have some material impact, although there is no large, foreseen delay to the delivery of the project at this stage. On the support to the business, there is no support going directly from Government to the business to subsidise the transaction. There have been amendments to the contracts supported by my Department and the Ministry of Defence. He asked for the details. I will not reveal it in the House because of the commercial sensitivity, but I will find out whether there is a way to share that with him. On whether the deal is compliant with the Windsor framework and our commitments as a country under those arrangements, I am satisfied with all that. Despite the fact that we will always respect those arrangements, we are the UK Government and we make decisions for every part of the UK, with the regulatory approvals, and I seek no one’s permission to be the Secretary of State for Business and Trade across all the UK.

On additional work packages, there are no additional promises from the Government, although he will know that there is a 30-year supply pipeline for shipbuilding in the UK and many opportunities, particularly in sectors such as energy, maintenance and fabrication, and a whole range of functions where Members across the House would want to have a strong, diverse and competitive shipbuilding and maintenance sector.

Finally, on defence spending, the hon. Gentleman had a bit of a try-on. He asked what assurances the sector can have. The biggest assurance I can give is that we only ever hit that 2.5% under Labour Governments. The fact is that we have a Labour Government with that commitment to the defence sector and its role—the ability to deliver maximum economic benefits for the UK, as well as that vibrant and important defence role—and we will continue to deliver on the way to that.

[Madam Deputy Speaker]

I call the Chair of the Business and Trade Committee.

[Liam Byrne (Birmingham Hodge Hill and Solihull North) (Lab)]

Congratulations to the Secretary of State. This is excellent news for the people of Appledore and of Northern Ireland and for workers across the Harland & Wolff supply chain. He might want to confirm that the peril of providing a Government guarantee was the possibility of entailing a huge payout to a US-based hedge fund, which was the largest creditor for Harland & Wolff. What is happening to the contract value for the FSS deal? It was priced at about £1.6 billion. Has that contract value now gone up? Crucially, what does the Secretary of State envisage for Harland & Wolff after that enormous contract is safely and soundly delivered?

[Jonathan Reynolds]

I thank the Select Committee Chair for his kind words. I am delighted that we have been able to secure this future for Harland & Wolff. His assessment is right that the largest creditor to Harland & Wolff when we took office was Riverstone, a significant US hedge fund. He is right to say that had we gone ahead with that Government guarantee or loan, there would likely have been no real return to the taxpayer—no guarantee of jobs, shipyards or ships being built. That money would have gone to the creditors. Actually, in the commercial market-based solution that we have been able to broker, all creditors have behaved responsibly, but, understandably, if anyone thinks the Government will come along and give them free money, they will hold out for that option. That was why it was so important to make that decision early on to secure this far better outcome.

On the specific question, and I should have directed my answer to the shadow Secretary of State, the hon. Member for Arundel and South Downs (Andrew Griffith), there is no change to the UK-based content of the contract. As I said in the statement, there have been some changes on commercial terms, although they are relatively minor based on the overall value of the contract.

On the future, I can tell the right hon. Member for Birmingham Hodge Hill and Solihull North (Liam Byrne) that the deal we have brokered guarantees not only all four yards, but the jobs in the Belfast yard for three years and jobs in the three other yards for two years. We therefore have a chance not just for new investment coming into those yards, but for the long-term future to be secured for a pipeline of work and energy and defence contracts, which is a vibrant and successful opportunity for the future.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the Liberal Democrat spokesperson, who has up to two minutes.

[Steve Darling (Torbay) (LD)]

This is an outstanding Christmas present for the 1,000 employees from Devon to the Isle of Lewis who will benefit from this decision and the deal that has been pulled off by the Government. In the west country, we have a low-wage economy, and in the Appledore dockyard, which is not too far from my constituency of Torbay, this will go down extremely well, so congratulations are in order. That is in sharp contrast with the failure of the previous Administration on implementing an industrial strategy, supporting our shipping industry and growing our economy over many years. The position that the Conservatives are taking now is utterly shameful. How can we hardwire that long-term support for our shipping industry so that we see growth in this area and support for industries such as steel manufacturing?

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[Sir Bernard Jenkin (Harwich and North Essex) (Con)]

I add my congratulations to the Government for getting this agreement over the line, but when will we get their defence industrial strategy? So far we have had only a rather lengthy statement of intent. We need to reindustrialise our defence industrial base in order to face modern challenges, and that is particularly essential given the threats we face from the east of Europe at this time. That is very difficult to do in government, because the Treasury hates his stuff, as the Secretary of State may already have discovered, but we will hold him to account on what he described as leading this sector into future growth, and indeed on reindustrialising our steel industrial base and so on, so that we have the self-sufficiency that is vital for the defence of the country.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I encourage the Secretary of State to be brave in responding to the point about the Treasury.

[Jonathan Reynolds]

Absolutely, Madam Deputy Speaker. I very much welcome the question and would like to put on the record that I have only good things to say about His Majesty’s Treasury at all times. [Laughter.] It is true; I mean that. The hon. Gentleman is absolutely right to say that there is great imperative—with a particular degree of responsibility in the defence part of the industrial strategy—in the challenges we face. It is imperative not just that we work closely with colleagues in the Ministry of Defence on procurement issues and Government-to-Government sales, in which my Department plays a major role, but that we address wider regulatory issues.

As the hon. Gentleman may know, the Department recently did work on environmental, social and governance criteria to ensure that they do not prevent investment into defence companies. There are issues with small and medium-sized enterprises in the defence sector struggling to access bank accounts—not through a prohibition on defence, but perhaps because of a lack of understanding about such commercial contracts being different from those in other parts of the economy. There are a whole range of issues that we must get right, but I think that, in the main, Members across the House share his aspirations and objectives. He has been a voice of expertise and authority on these issues throughout my time in Parliament, and I am grateful for his engagement on them.

[Jonathan Reynolds]

I recognise the role that shipbuilding has played in my hon. Friend’s city. I grew up in Sunderland —part of what was once one of the major civil shipbuilding locations in the world—and I recognise the identity and pride that comes with that industrial heritage. In many cases, people feel that it is something of the past, but in this statement we are stressing exactly what she said about the contemporary contribution and the opportunities for the future, about which we should be excited. There are a whole range of increasing needs to shipbuilding expertise, particularly in the energy sector—offshore wind, for example, creates a range of demand for different types of maintenance and supply vessels—so this should be an optimistic story for the future. Sometimes I feel that the wider British public perhaps do not understand the number of jobs or the economic benefit that come from such a sector, so it is always good to make that case from the Dispatch Box—as my hon. Friend does every day from the Back Benches.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call John Cooper, a member of the Business and Trade Committee.

[John Cooper (Dumfries and Galloway) (Con)]

I congratulate this Front-Bench team and the wider Government on landing this deal in the face of what the Secretary of State has euphemistically called the “headwinds” —I would call them a full-force gale—created by the Budget. Did Navantia raise concerns about the forthcoming Employment Rights Bill? It swings the pendulum very much in favour of trade unions, which, as we know, are very often red in tooth and claw. Was that an issue in landing the deal?

--- Later in debate ---

[Jonathan Reynolds]

I am grateful to my hon. Friend for his comments on the deal and for his observations about the questions from the Opposition Front-Bench spokesman about the 2.5% target. On the modern industrial strategy that we are creating, we have had an incredible response to our Green Paper—some 22,000 individual answers to the questions it asked—showing that there is a huge appetite from industry across the board, both in the UK and abroad, to engage with what the Government are seeking to do. Again, I stress that that should always be on a cross-party basis; there is nothing in that Green Paper that anyone of any political stripe should be able to oppose. It is based on our national interest and the goal of being more competitive and business-friendly, succeeding to a greater degree on the world stage.

This week, we had our first meeting of the Industrial Strategy Advisory Council, with some tremendous representatives with expertise across the board—UK industry, academics and business figures. It is an incredibly exciting time. This is just one component of our growth mission, but clearly an important one, alongside areas of work for me such as the small business plan that we are putting together. I genuinely believe that everyone should be excited about the future.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call Alison Griffiths, a member of the Select Committee.

[Alison Griffiths (Bognor Regis and Littlehampton) (Con)]

Madam Deputy Speaker, I am sure you will have noticed that the Secretary of State did not answer one question, which was whether he would clarify that the final assembly and systems integration will take place in Belfast, rather than in the Navantia shipyards in Spain.

Future of the Post Office

Nusrat Ghani Excerpts

Wednesday 13th November 2024 Commons Chamber

[The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)]

With permission, I will make a statement on the Post Office. Frankly, the Government inherited a Post Office that is simply not fit for purpose, following disinterest from the previous Government, a toxic culture in head office and years of under-investment.

Our top priority remains delivering redress to those affected by the Horizon scandal. We have already taken significant steps to increase the payment of redress, which has nearly doubled under this Government. Let me be clear with the House, though. There are still complex cases to resolve, and we have identified gaps in the compensation process, but we are beginning to make progress. As of 31 October, £438 million has been paid to over 3,100 claimants. In July, we launched the new Horizon convictions redress scheme for victims whose convictions were overturned by legislation, and we have announced our intention to set up an appeals system for the much-criticised Horizon shortfall scheme.

We were clear in our manifesto that we will work to strengthen the post office network in consultation with postmasters, trade unions and customers. The post office network provides critical services that are valued by communities across the whole of the UK. Their essential services go beyond post; they provide access to cash, banking and other financial services too. This Government recognise that access to cash remains particularly important to millions of people across the UK. Through its network of 11,500 branches across the UK, the Post Office continues to provide vital banking services to communities and businesses alike through the banking framework, and to protect access to cash.

I know how highly this House rightly values postmasters and what they provide day in and day out to the communities they serve, but we have to recognise that the Post Office is far from perfect. We have seen this from the evidence given at the inquiry. It is clear that there needs to be a significant cultural change at the Post Office to ensure that it genuinely prioritises the needs of postmasters and delivers customers’ needs far into the future. It is also clear that more needs to be done to rebuild trust within the business and with the public who depend on its services. It is also no secret that the business is facing commercial challenges. Nearly half of its branches are not profitable or only make a small profit from the Post Office business, postmaster pay has not increased materially for a decade, and the company has a high cost base and needs to transform its IT system.

Earlier today, Nigel Railton set out his ambition for the future of the Post Office, in his role as its chair. Postmasters have to be placed front and centre of the Post Office, and we agree that the culture of Post Office headquarters, in particular, needs to change fundamentally to deliver that. As part of this, the Post Office plans to reduce central costs and look seriously at other ways to deliver efficiencies, which should enable real-terms increases in postmaster pay.

Mr Railton’s ambitions are a new deal for postmasters that puts postmasters at the heart of the Post Office. There will be stronger postmaster engagement in the running of the business. As part of this, a new postmaster panel will be established to enable current postmasters to work with the company to improve the support and training provided to postmasters. The Post Office will also set up a new consultative council that will work with the Post Office’s senior management on how these new plans are taken forward, to provide genuine challenge and maintain focus on the needs of postmasters. Mr Railton’s plan seeks to makes changes to the business, with the ambition of significantly increasing postmaster remuneration, and it sets out an intention to transform the service and support that postmasters receive from the Post Office.

No decisions to close any or all of the remaining directly managed branches have been taken. The Post Office will continue to deliver on the 11,500 minimum branches requirement set by Government. We have made it clear to the Post Office that we expect it to consult postmasters, trade unions and other stakeholders before any individual decisions are taken. Aspects of the plans are also subject to Government funding and the outcomes of the upcoming spending review.

Lastly, we have already set out our plan to publish a Green Paper to consult the public on the long-term future of the Post Office, not least on how it should be governed after a decade of decline. Doing nothing at the Post Office is simply not an option. There is more work to be done, but there has to be change. I commend this statement to the House.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the shadow Minister.

--- Later in debate ---

[Gareth Thomas]

I am grateful to the shadow Minister for some of his comments. I am happy to confirm that I will keep the House updated on work around the future of the Post Office, as well as, even more importantly, on the work to ensure that all those sub-postmasters who were the victims of the Horizon scandal get full and fair redress. On that point, I should say at the outset that I have met a series of sub-postmasters who were victims of the Horizon scandal, and each of them certainly left their mark on me. Their stories will stay with me for a very long time, and in that regard I am sure that I speak for the whole House, given the conversations that Members have had with individual sub-postmasters in their constituencies. I am therefore acutely aware of my responsibility, and the Government’s responsibility more generally, to follow through on our commitment to speed up redress.

The number of cases that have been settled with full and fair compensation has nearly doubled in the four months since we came into government, compared with the four months before. We have taken a series of additional steps to try to make it easier for sub-postmasters who were the victims of the scandal to get full and fair redress quickly, not least by fixing some payments for those applying under the Horizon shortfall scheme and similarly fixing some payments under the Horizon convictions redress scheme, which we launched back in July.

The hon. Gentleman’s wider point about the Budget’s impact on the high street sounded like he was replaying his lines from last week’s Budget debate. I recall him being the right-hand man to Kwasi Kwarteng, who helped to do huge damage to businesses up and down the country and helped to drive interest rates to a 16-year high, so I gently suggest that he has more work to do to be convincing on his support for businesses.

I hope the hon. Gentleman is willing to take responsibility for another impact, because more than 9,500 bank branches have closed over the past 14 years, which has had a considerable impact on the future of the high street. With Nigel Railton, our plan is to improve banking services and to roll out banking hubs, which I hope will make a significant difference.

On the Budget more generally, given the financial mess in which the Conservatives left the country and given the lack of money set aside for Horizon compensation, I think the hon. Gentleman should be a little more honest to this House about his responsibility for the scale of the mess we inherited.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the Chair of the Business and Trade Committee.

[Liam Byrne (Birmingham Hodge Hill and Solihull North) (Lab)]

Today is the last day of the Horizon inquiry. I look forward to working with you, Madam Deputy Speaker, and with colleagues across the House to explore appropriate sanctions for those who clearly misled us as the scandal unfolded. I look forward to seeing the Minister and the Minister of State, Ministry of Justice, my hon. Friend the Member for Swindon South (Heidi Alexander), before the Committee on Tuesday 19 November to explore how redress payments can be paid faster.

It is surely right that we aim to grow the top line of Post Office businesses, which has to mean that high street banks contribute more to the core business. What steps can the Minister take to ensure this happens?

--- Later in debate ---

[Gareth Thomas]

I welcome that the Committee’s first act is to look at redress for sub-postmasters who were victims of the Horizon scandal. I will happily appear next week to talk through where we are on compensation payments.

My right hon. Friend is right to say that one of the bright spots in the Post Office’s future lies in banking, and the continuing commitment of its sub-postmasters is the brightest spot. With the right support from the financial services industry, there is clearly more that the Post Office could offer on the high street through banking hubs and the post office network. We will work with the Post Office, and the banks have a particular responsibility, given how many bank branches have closed, to work constructively with the Post Office to improve the banking offer on the high street.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the Liberal Democrat spokesperson.

[Sarah Gibson (Chippenham) (LD)]

I also thank the Minister for his statement.

Post Office branches across the UK are a vital part of our local communities and high streets, with millions of people depending on them, especially in more rural areas of the south-west, such as my constituency. The news that 115 branches and around 1,000 jobs could be at risk is extremely concerning. I am pleased to hear the Minister’s reassurances, but the organisation needs reform. Local communities cannot be left without the essential services that post offices offer, especially as we see high street banks disappear. The Government must guarantee that local services and post office jobs are protected.

We also urge the Government to take action to set the Post Office on a sustainable footing for the long term. The Liberal Democrats have put forward a proposal for mutualisation of the Post Office, which would give sub-postmasters more independence and control. We should encourage post offices to play a more active role in our local economies, acting, as Members have mentioned previously, as community banking hubs and Government services hubs.

These post offices are often the only non-digital places where a local community can access Driver and Vehicle Licensing Agency services and passport services, or to prepay for their utility bills. These post offices are essential for some of our more elderly and vulnerable residents.

The Government have announced that they are looking into broader reform of the organisation, and they will produce a Green Paper next year. Will the Minister assure the House that these proposals, including mutualisation and strengthening the services provided by post offices, will be properly considered so that we can ensure post offices are fit for the future?

Madam Deputy Speaker, I have a final quick point—

[Madam Deputy Speaker (Ms Nusrat Ghani)]

Order. You only have two minutes.

[Gareth Thomas]

I underline that no decision has been taken on any or all the directly managed branches. However, these branches cost significantly more to run than those run by franchisees. We have made it clear to the Post Office that, as it reviews these costs, it must talk to sub-postmasters, trade unions and other stakeholders.

The more general point about ensuring that people in rural areas can access a post office branch is well understood within the Department and across Government. There has been no decision to change the commitment to run 11,500 branches or to change the level of Government funding provided to run the network across the country.

I agree with the hon. Member for Chippenham (Sarah Gibson) that the Post Office can do more. That is one reason why we committed in opposition—and are delivering in government—to rolling out more banking hubs, which will be run by the Post Office. She made an interesting point about digital exclusion and the Post Office’s potential to do more in that regard.

Lastly, given my background, I am interested in mutualisation, but I hope the hon. Lady will recognise that there are significant challenges in determining whether mutualisation is a realistic possibility at this stage. One reason for our commitment to publishing a Green Paper next year is to explore these issues in more detail.

--- Later in debate ---

[Gareth Thomas]

I am acutely aware of the responsibility of Government to ensure that every community has access to a post office branch. That is why we are continuing to provide a £50 million subsidy to the Post Office to maintain the network going forward. It is also why we think the Post Office should do more when it comes to providing banking services—it is one of the potential areas for it to grow its business. In that regard, given the retreat of bank branches from constituencies such as my hon. Friend’s, we absolutely think that the banks should work directly with the Post Office to improve the banking offer in all our communities.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

It would help if the Minister occasionally looked at the Chair and kept his answers short so that we can get everybody in.

[Sir Gavin Williamson (Stone, Great Wyrley and Penkridge) (Con)]

In my constituency, there is real concern about the loss of more rural and village branches. Can the Minister give us some assurance that he will do everything that he can to preserve this vital link and that he will look at how the Post Office can operate more like a commercial franchise operator, which would support and help postmasters to really maximise their business?

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[Gareth Thomas]

The situation the hon. Lady describes is exactly why I welcome the fact that the new management of the Post Office is putting the issue of sub-postmaster pay front and centre in its thinking. If we do not do something to shift sub-postmaster pay upwards, we will see more sub-postmasters making the sorts of decisions that she describes. We must do something urgently to address this. The Post Office management and chair are rightly homing in on that question as fundamental to the future of the Post Office. As I have underlined, I think there is more that the Post Office could do on banking; that view is certainly shared by the Post Office senior management team, and we are working directly with them to see what more can be done.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

If everybody gives short questions—and short answers, Minister—we can get this done in the next 15 minutes.

[Peter Swallow (Bracknell) (Lab)]

My constituents in Crowthorne are rightly proud of our high street, but as there is no direct access on that street to banking services or a post office branch, they struggle to access vital services. Does the Minister agree that today’s announcement highlights the need to roll out more banking hubs, while setting out a viable future for post offices, so that communities such as mine can access the vital services they need?

Pubs Code: Guest Beers

Nusrat Ghani Excerpts

Tuesday 12th November 2024 Commons Chamber

[Ms Minns]

I agree with my hon. Friend. From March next year, pub tenants just 700 yards from my constituency will be able to open up a direct relationship with local breweries such as those that my hon. Friend referred to and have beer from small independent breweries served to their customers. The Scottish pubs code, championed by the Labour MSP for West Scotland, who brought it forward as a Member’s Bill, is due to be introduced in 2025. It is similar in many respects to our own pubs code, which governs England and Wales, but for one crucial element. In regulating the relationship between tied pub landlords and tenants, it aims to promote fairness and equitable treatment within tied pub lease agreements. It also allows Scottish pub tenants to enter into a guest beer agreement whereby the tenant can sell at least one beer in any format—including cask and keg —chosen by them at a price they determine. They can change that as frequently as they wish. The beer must be of a brand where less than 5,000 hectolitres—I am reliably told that is about 875,000 pints—was produced in the previous production year. That means that it is beer from small local breweries that qualifies and not that from the larger breweries.

That will empower tenants, allowing them to respond to their customers’ requests, and support small local breweries. Introducing a guest beer agreement in the rest of the UK could be worth £28 million to local breweries. It would widen consumer choice, help landlords and support small local businesses, so I am delighted that the Chancellor and Ministers have been watching developments in Scotland closely and promised in the Budget last month a consultation on ways to encourage small breweries to retain and expand their access to UK pubs. The consultation provides an opportunity to maximise consumer choice and support local businesses by enabling more guest beers. It is an important development, and it shows that the Government want local community businesses to have the opportunity to compete, grow and expand.

As we have heard, 78% of the beer sold in our pubs comes from just five global brewing companies. In comparison, our 1,700 small breweries represent only about 6% of the market. That needs to be urgently reviewed to ensure that there is a level playing field where small businesses can compete fully.

On that point, I congratulate the Society of Independent Brewers and Associates on the launch of its new “indie beer” campaign, which seeks to make it easier for beer drinkers to identify beer from independent breweries in pubs, bars and shops as demand for local beer rises across the UK. Research shows that most beer drinkers are unaware that the mass-marketed craft beer brands that we see in our pubs across the UK are in fact owned by global brewers. A good example of that from my own county is Wainwright beer. Inspired by the chronicler of our famous Cumbrian fells, the name Wainwright is synonymous with the county of Cumbria, and that leads many visitors to believe that they are sampling a locally brewed beer when they come to Cumbria; in fact, it is just one of a range of beers produced by the global beer company Carlsberg. The majority of beer consumers say that they want to buy beer from genuinely independent local breweries. I believe that SIBA’s campaign will help many more do just that.

These issues are wider than just the tenanted pub market, with small breweries facing restrictions in the leased, managed and free house pub markets as well. Perversely, many free houses are not free at all when it comes to beer. Sole supply contracts with global breweries are prevalent, restricting and determining what beers can be sold. Increasingly, these global breweries are also using proprietary equipment in pubs, which prevents a local brewery from even being able to connect their casks to the pub and offer their products to the landlord at all.

Publicans, brewers and beer consumers in my constituency hope that the Minister will be able to start the consultation process as soon as possible. I wonder whether the Minister may be able to offer some clarity on when that might commence, so that all interested parties can have the opportunity to provide their insights and experiences. It would also be appreciated if he could confirm that this will include issues experienced right across the UK, including in England, Wales, Scotland and Northern Ireland. Will it also look at the whole pub market, including tenanted, leased, managed and free houses? Will it include both keg and cask draught beer, which is predominately sold in our pubs?

Finally, will the Minister look closely at the Scottish guest beer agreement to see whether its provisions could be included in our own pubs code for England and Wales, perhaps as part of the statutory review of the pubs code, which I understand is due next year? Should the Minister ever find time in his busy diary, I would like to invite him to visit my constituency to meet some of my local breweries and to join me for a drink—albeit not a locally brewed one—in the Border Reiver, the last pub in Britain to have been designed, funded and built by the UK Government.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

Before I call the Minister, I have been updated on the recent wedding this weekend of the hon. Member for Inverclyde and Renfrewshire West (Martin McCluskey). I congratulate him, and I understand that his husband Ben has been waiting quite some time to see his new husband. That is some pressure for the Minister.

Budget Resolutions

Nusrat Ghani Excerpts

Wednesday 6th November 2024 Commons Chamber

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call Dame Caroline Dinenage.

--- Later in debate ---

[Dr Opher]

I understand that it will be mitigated through funding. I am not exactly sure how, but I have no doubt—[Interruption.] That is because I have not been informed, but I have no doubt that it will be coped with. I know that this Government will rebuild general practice, just as the Conservative party trashed it and broke the back of it. I am not taking any criticism from any of you about the NHS.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

Order. Please be seated. You are not taking any criticism from me. You said “you”. Please do not refer to colleagues as “you”.

[Dr Opher]

Sorry. I did get rather angry there, and I shall not get angry any more.

Let me talk about GP access. We need to get doctors, not receptionists or 111, to perform triage, and we need to start thinking in a different way. We do not want a protocol-driven NHS; what we need is a genuine doctor-patient relationship. We also need to develop neighbourhood—

[Graham Stuart]

On a point of order, Madam Deputy Speaker.

[Madam Deputy Speaker]

Is it a relevant point of order?

[Graham Stuart]

It is.

[Madam Deputy Speaker]

Can the point of order not wait, Mr Stuart?

[Graham Stuart]

No, it is relevant here. I wonder whether it is in order for the hon. Gentleman to have been given assurances by the Government that funding will be put in place to mitigate the impact on GPs, because that information has repeatedly been refused to this House. I know, Madam Deputy Speaker that you represent all Back Benchers, like me, in making sure the truth is out.

[Madam Deputy Speaker]

You can definitely raise that in your contribution later. It is not a point of order for the Chair, but no doubt the Minister and Front Benchers have heard and can respond accordingly.

Dr Opher, you will shortly run out of time, so I would be quick.

[Dr Opher]

Okay. I worked in general practice for 30 years. There is always mitigation for tax changes, and I have no doubt that the Government will look after GPs.

--- Later in debate ---

[Ben Maguire]

Bank shares are soaring following this Budget. Does my hon. Friend agree that the Liberal Democrat proposal to reverse the Conservative Government’s cut to the big bank levy, raising around £4 billion a year, would mean that we would not need the GP tax, the family farm tax or the winter fuel cut and that we could fund upgrades to the Treliske, Derriford and North Devon hospitals—

[Madam Deputy Speaker (Ms Nusrat Ghani)]

Order. This is too long an intervention.

[Martin Wrigley]

My hon. Friend is absolutely right: there are other ways that this money could have been found. The Liberal Democrats have long been saying that we should be looking to the banks, the big oil companies and the big international tech companies to pay their fair share, and that is where money should be sought.

There is nothing in the Budget for Devon’s essential transport. Last year’s pothole fund was a “drop in the ocean”, according to Devon County Council, and the 50% increase in this Budget still leaves a big hole. Not even mentioned in the Budget is the completion of the Dawlish rail resilience project, which is key to connecting the south-west. Without funding, the design team will soon be redeployed and all the progress to date will be lost. This project will cost millions more if it is not done now, and I urge the Minister to meet us to get it funded. Growth in the economy in Devon and Cornwall is heavily dependent on fast, reliable train services, and we saw what happened with Dawlish.

The Budget also mentioned housing and local government. Until July, I was leader of my district council, and I am proud that the Lib Dem administration started building council homes—the first in 30 years. They were cheap to rent and cheap to heat because they were well insulated and powered by air source heat pumps and solar power. Additional capital for social homes is welcome, but the frozen local housing allowance hampers housing associations that have already scaled back their plans for development, and commercial developers will still try to cut affordable homes from section 106 responsibilities.

The Budget also offers 300 new planning officers, but those are spread very thinly over the 326 planning authorities. Newton Abbot’s social housing need has increased by 50%. In my constituency—like in Ely—the average house price is 11 times the average earnings and rents have soared. The broken housing market is failing Newton Abbot, and the proposed changes to the planning rules are insufficient to fix it. Homes are unreachable for too many families. People are being denied the right to a safe and secure place to call home.

I welcome the multi-year settlements for councils and the removal of the “Hunger Games”-style bidding for grants involving huge amounts of wasted efforts writing bids and unachievable timeframes. We cannot let that centralised control continue. We need real devolution, but devolution is not just reorganisation—

[Madam Deputy Speaker (Ms Nusrat Ghani)]

Order. I call Rosie Wrighting.

[Rosie Wrighting (Kettering) (Lab)]

Like many of my hon. Friends, I have spent my career in business—specifically, in retail head offices—so I am proud to be a part of a Government that is pro-business and pro-worker. The last time a Labour Government delivered a Budget in this House, I was 12 years old. That Labour Government looked after our public services, focused on cutting crime, were ambitious about our education and invested in our NHS. It is because of those decisions that I had the opportunities that I did and that I am standing in this House today. Since then, those priorities have been forgotten and our constituents have had to bear the brunt.

People in my constituency of Kettering know all too well the price they have paid for the last 14 years of Tory failure: crumbling hospitals and schools, rising crime and a crisis in SEND. Working people in this country have not had a Government who have worked for them for 14 years. It is shameful that the previous Conservative Government promised funding that simply did not exist. They let our communities think that they were going to receive money, knowing that it was not there and that it would be someone else’s problem after the election.

We now finally have a Labour Government and a truly Labour Budget that prioritises working people. It is incredible to be the youngest woman in the House today, but it is even more incredible to have watched the first female Chancellor deliver the first Labour Budget in 14 years. It shows me and many young women that there is no limit to our ambitions. Regardless of what the Leader of the Opposition thinks, this was a glass ceiling shattered.

There are some hugely important measures in this Budget for the people of Kettering. Our public services deserve better than the treatment they have had for the last 14 years, and I am proud to be part of a Labour Government who are fixing the foundations and rebuilding Britain. People all over the country are waiting to see what this Government will deliver and, thanks to this Budget, we can give them hope that they will have an NHS fit for the future and a country that invites investment, without barriers to opportunity, and in which working people are at the heart of everything we do.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call Charlie Maynard. Not present.

--- Later in debate ---

[Madam Deputy Speaker (Ms Nusrat Ghani)]

Order. To ensure that I can get in as many people as possible, there should be no further interventions.

--- Later in debate ---

[Catherine Atkinson (Derby North) (Lab)]

My constituents go to work to make trains, planes and automobiles at Alstom, Rolls-Royce and Toyota, and they work in their supply chains. This Budget delivers ambitious plans for rail infrastructure, nearly £100 million in R&D funding for aerospace, and £2 billion to support the automotive sector. To get to work, many of my constituents commute; 1.2 billion vehicle miles were travelled on Derby’s roads last year. The fuel duty freeze and the extra half a billion pounds to fix potholes are hugely welcome.

My constituents teach and learn at our great university and schools. They treat others and are treated at the Royal Derby hospital. They work in our shops and restaurants, and on the building sites where the regeneration of our city is taking shape. We in Derby are laying the foundations for growth—literally. Building is under way on a new university business school, a new mental health unit at Kingsway and a new performance venue at Becketwell. At Friar Gate goods yard, which has stood derelict for over 50 years, new homes and businesses are being built. There is also investment in our theatres—£20 million of funding that this Budget underwrites.

We needed and got a Budget that supported our ambitions. Last week, I went from the Budget statement to a meeting of small businesses in my constituency, which was organised by the Federation of Small Businesses. We discussed how this Budget will grow the cake, from investment in skills and reform of business rates to the approval of the east midlands investment zone and start-up loans. This is a Budget that is, at last, honest about the public finances being in a mess, and we have made tough decisions so that our businesses can have the stability and certainty they need.

To rebuild Britain, however, we also need to reset the broken contract with working people. For 14 years, in Budget after Budget, from austerity to Liz Truss’s mini-Budget, working people were barely offered crumbs from the table, while productivity and growth flatlined—but no more. Working people now have a proper seat at the table. The minimum wage will increase from £11.44 to £12.21 an hour next April, which will affect one in 10 Derby North workers. For 18 to 20-year-olds, there will be a 16% increase to £10 an hour. Derby has the second highest average salaries outside London, so for those moving on with their careers, there will be a rise in the income tax and national insurance contributions thresholds from 2028-29. Finally, investment—

[Madam Deputy Speaker]

Order. I call Sam Rushworth.

[Sam Rushworth (Bishop Auckland) (Lab)]

The Conservative party was keen for us all to declare our membership of trade unions in the debate on the Employment Rights Bill, so we should probably all declare that most of us received funding from businesses during the general election campaign. I certainly did, and I pay tribute to the small businesses in my constituency. Some 89% of them are considered microbusinesses with fewer than 10 employees, so the majority will pay less national insurance under this Budget. I thank the Chancellor for protecting working people and small businesses.

Listening to Conservative Members, as we have been doing for the past five hours, it seems that many of them see the business community as caring about nothing but quick profits and avoiding tax, but the local businesses that I speak to are proud not only to deliver quality products and services, but to create good jobs and strengthen the local economy. They have been doing that in trying circumstances, and many of them have supported Labour candidates at this election because they want a Government who match their ambition. When I ask them what they want to see from Government, they say they want not only a fair tax system but investment, and that is what this Budget delivers. They want a secure power supply. They also want faster planning decisions, including the young farmer who came to see me because he has been pushed back for two years now in his attempt to just build some pig pens.

The biggest barrier, however, is that businesses cannot get the staff, and this is true from manufacturing to hospitality. Britain is held back by a skills shortage, so I welcome a Budget that will invest in Britain’s most precious, productive asset: her people. When we invest in faster NHS appointments, in emergency dentistry, in mental health, in SEND provision, in specialist teachers in STEM subjects and in childcare, we invest in business too, because these are the people who will rebuild Britain.

The people of Durham have been held back for too long. In the past 14 years, our life expectancy has fallen behind. Our children are shorter, and the number of children in care has increased by 250%, so we can see the impact of austerity in people’s bodies and family life. I welcome a Budget that has brought the end of austerity and begun the long, hard job of rebuilding this country. I also welcome a Budget that has put more money in people’s pockets, including by honouring the triple lock, which the Conservatives failed to do in 2022, costing pensioners in my constituency £488.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

We come to the final Back-Bench speaker, Patrick Hurley.

[Patrick Hurley (Southport) (Lab)]

When I stand to speak in this House, I often criticise the former Government, and to be fair, there was a lot to criticise, but Liz Truss at least got one thing right. She claimed to make economic growth the driving force behind her plans, but while Truss took a reckless big-bang approach to tackling the stagnation that this country has experienced since 2010, our focus is on long-term investment, not short-term tax cuts. This speaks to one of many big problems with recent Tory Governments—a problem that any business owner in this country could tell you about. It is all about return on investment. Over the last 14 years, there has been too little return because there has been too little investment. To combat that, we have secured £63 billion in private investment, and we have put £2 billion into electric vehicle development. I note, too, that the UK Space Agency says that the space industry is worth £17 billion a year to our economy. It is no doubt helping to ensure that we get early warning of any new super-massive black holes we might not be aware of.

This Budget is the beginning of the change our country voted for. It will make Britain better off; there will be more money in people’s pockets, an NHS that is there when people need it, businesses creating wealth and opportunity for all, the house building that we need, the transport infrastructure that we are crying out for, wages that make work pay, and a state pension that is uprated as it should have been all along. This is a Budget of change, a Budget of investment and growth, a Budget to put more money in working people’s pockets, and a Budget to get our public services back on their feet. It is the most welcome Budget for many years—a Budget in line with the values of the British people. I am proud to support this Labour Budget.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the shadow Minister.

--- Later in debate ---

[Tulip Siddiq]

The right hon. Gentleman has intervened 18 times. I shall not give him another chance.

Let me continue. That is the only way that we can really fix the foundations. Of course, that involves taking tough decisions, particularly on spending and taxation, but I will take no lectures from those who were content to levy a £22 billion pound tax on this country’s future, and, through their unfunded spending commitments, attempt to undemocratically bind the hands of a future Government. Well, guess what? This Government will do things differently. While the previous Government allowed investment in our country to fall to its lowest level on record, this Government will put investment at the heart of everything that we do.

That is why we held the international investment summit in October—to show firms at home and abroad that Britain is open for business once more. That is why we have introduced a new fiscal rule—the investment rule—which, alongside appropriate guardrails provided by the OBR and our new stability rule, means that this Government can meaningfully invest in our country’s future.

Of course, investment means taking a long-term view. As anyone who has bought a property, built a business or raised a family will know, the early days are always the hardest. But if they take the hard calls now, in time they will get back far more than they put in. I pick those examples deliberately, but with regret. The sad truth is that, for working people—particularly young people—up and down the country, home ownership, entrepreneurship and starting a family have never been more distant. This Budget will start to change that.

Our manifesto made a clear commitment to get Britain building again. This Budget puts the first shovels in the ground, with a commitment to spend an average of 2.6% of GDP on public sector net investment over the course of this Parliament. This will include an additional £500 million in new funding for social and affordable homes, which brings total investment in housing supply to more than £5 billion and supports the delivery of tens of thousands of new homes.

We will build more than just homes; we need to build communities. Infrastructure is key to tying those communities together while ensuring that they plug into the wider economy. [Interruption.] The shadow Foreign Secretary asks how. If she listens, she will learn, so she should pay attention. Getting our country moving again will be key to growing the economy. [Interruption.] She should not chunter from the Front Bench. She needs to listen, because our commitment to infrastructure investment will help us to do so—by, for instance, increasing local roads investment by £500 million in 2024-25. These are the things that the previous Government failed to do, but we will deliver for our country. For working families, that means less time wasted dodging potholes and more time for the things that actually matter. Of course, infrastructure helps not just families but firms. In an increasingly volatile world, Government should play an important role in securing our energy supply so that firms can price that into their business plan.

We heard powerful and authentic maiden speeches today from my hon. Friends the Members for North Ayrshire and Arran (Irene Campbell), for Stoke-on-Trent North (David Williams) and for Sherwood Forest (Michelle Welsh). We will see them as huge assets to Parliament. Some of them mentioned that their families did not think that they would get here; I am really pleased that their families were wrong.

I will finish by echoing something that the shadow Minister, the hon. Member for North Bedfordshire (Richard Fuller), said. It is not often that I agree with him, but he said that we had choices. The truth is that we did have choices, and guess what? We chose to act. In 10 years’ time, the country will look back on this Budget as the moment when we got Britain’s future back. In the future, the economy will have grown because at this moment we chose to prioritise a healthy workforce; we will have record levels of investment because we prioritised fiscal and economic responsibility; and people will have more money in their pockets because we prioritised protecting hard-working people’s payslips. The merry-go-round of austerity and economic irresponsibility is over. We made a choice—a choice to rebuild Britain.

Question put and agreed to.

Resolved,

That income tax is charged for the tax year 2025-26.

And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

Let me explain what will happen next. I am now required under Standing Order No. 51(3) to put successively, without further debate, the Question on each of the Ways and Means motions numbered 2 to 62, and the money motion on which the Finance Bill is to be brought in. These motions are set out in a separate paper distributed with today’s Order Paper.

The Deputy Speaker put forthwith the Questions necessary to dispose of the motions made in the name of the Chancellor of the Exchequer (Standing Order No. 51(3)).

2. Income tax (main rates)

Resolved,

That for the tax year 2025-26 the main rates of income tax are as follows—

(a) the basic rate is 20%,

(b) the higher rate is 40%, and

(c) the additional rate is 45%.

And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.

3. Income tax (default and savings rates)

Resolved,

That—

(1) For the tax year 2025-26 the default rates of income tax are as follows—

(a) the default basic rate is 20%,

(b) the default higher rate is 40%, and

(c) the default additional rate is 45%.

(2) For the tax year 2025-26 the savings rates of income tax are as follows—

(a) the savings basic rate is 20%,

(b) the savings higher rate is 40%, and

(c) the savings additional rate is 45%.

And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.

4. Income tax (starting rate limit for savings)

Resolved,

That—

(1) For the tax year 2025-26 the amount specified in section 12(3) of the Income Tax Act 2007 (the starting rate limit for savings) is “£5,000”.

(2) Accordingly, section 21 of that Act (indexation) does not apply in relation to the starting rate limit for savings for that tax year.

And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.

5. Income tax (appropriate percentage for cars)

Resolved,

That (notwithstanding anything to the contrary in the practice of the House relating to the matters that may be included in Finance Bills) provision may be made taking effect in a future year increasing the appropriate percentages mentioned in sections 139 to 142 of the Income Tax (Earnings and Pensions) Act 2003.

6. Capital gains tax (the main rates)

Question put,

That—

(1) In section 1H of the Taxation of Chargeable Gains Act 1992 (the main rates of CGT)—

(a) omit subsection (1A) (which sets out the rates for residential property gains accruing to individuals),

(b) in subsection (3) (which sets out the rates for gains accruing to individuals that are not residential property gains or carried interest gains)—

(i) for “10%” substitute “18%”, and

(ii) for “20%” substitute “24%”,

(c) omit subsection (4A) (which sets out the rates for residential property gains accruing to personal representatives),

(d) in subsection (6) (which sets out the rates for gains accruing to personal representatives that are not residential property gains or carried interest gains), for “20%” substitute “24%”,

(e) omit subsection (7) (which sets out the rates for residential property gains accruing to trustees), and

(f) in subsection (8) (which sets out the rates for gains accruing to trustees that are not residential property gains or carried interest gains)—

(i) omit “Other”, and

(ii) for “20%” substitute “24%”.

(2) The amendments made by this Resolution have effect in relation to disposals made on or after 30 October 2024.

(3) If an asset is transferred on or after 30 October 2024 under an unconditional contract made before that date, the disposal is, despite section 28(1) of the Taxation of Chargeable Gains Act 1992, to be treated for the purposes of the amendments made by this Resolution as taking place at the time the asset is transferred (rather than at the time the contract is made) unless the contract is an excluded contract.

(4) A contract is an excluded contract if—

(a) obtaining an advantage by reason of the application of section 28(1) of the Taxation of Chargeable Gains Act 1992 was no purpose of entering into the contract, and

(b) where the parties to the contract are connected persons, the contract was entered into wholly for commercial reasons.

(5) A contract is not to be regarded as an excluded contract unless the person making the transfer makes a claim which includes a statement that the contract meets the conditions to be an excluded contract.

(6) But no claim is required if the total amount of—

(a) the chargeable gain accruing on the disposal, and

(b) the chargeable gains accruing on all other disposals made under excluded contracts, does not exceed £100,000.

(7) For this purpose the amount of any gain accruing on a qualifying business disposal is to be taken to be the amount of the gain under section 169N(2) of the Taxation of Chargeable Gains Act 1992.

(8) If the person making the transfer makes—

(a) a claim under section 169M of the Taxation of Chargeable Gains Act 1992 in relation to a qualifying business disposal (business asset disposal relief), or

(b) a claim under section 169VM of that Act (investors’ relief) in relation to a disposal, section 169M(2) and (3) of that Act, or (as the case may be) section 169VM(1) and (2) of that Act, apply to a claim under paragraph (5) in relation to the disposal as they apply to a claim under the section concerned.

(9) In this Resolution “qualifying business disposal” has the meaning given by Chapter 3 of Part 5 of the Taxation of Chargeable Gains Act 1992.

(10) In this Resolution any reference to the transfer of an asset includes its conveyance.

And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.

Post Office Horizon: Redress

Nusrat Ghani Excerpts

Monday 9th September 2024 Commons Chamber

[The Secretary of State for Business and Trade (Jonathan Reynolds)]

With your permission, Madam Deputy Speaker, I would like to update the House on the Government’s response to the Horizon scandal. How appropriate it is to see you, a former Business and Trade Minister, in the Chair.

My priority as the new Secretary of State is to ensure that victims of the scandal receive the redress that they deserve. Over the past few weeks, I have begun meeting with some of the postmasters whose lives have been so badly damaged by those events. Their stories are harrowing, but their resilience and steadfastness in seeking justice are inspiring. I am also grateful for their candour in sharing insights on how the various compensation schemes can be improved.

May I make a personal point, Madam Deputy Speaker? I know I speak for hon. Members across the House when I say that it fills me with sadness to have to stand here today and address such a significant failure of the state. The role of Government must be to do right, seek justice and defend the oppressed, yet Governments have too often had to be forced into action by brave, tireless and resilient campaigning. Once again, I pay tribute to the Justice for Subpostmasters Alliance, and to campaigners such as Jo Hamilton, Lee Castleton and Sir Alan Bates—incidentally, I add my personal congratulations to Sir Alan on his recent wedding. Without their tireless efforts, justice may well never have been done in this case. As we stand here today, in the shadow not just of this scandal but those of Grenfell, infected blood and several more, I know that it is the firm conviction of everyone in this House that we must do better. This is an issue not of politics but of justice.

In that spirit, I cannot speak of the new Government’s work to address this wrong without again acknowledging and appreciating the work of Lord Arbuthnot and the new Lord Beamish—formerly the Member for North Durham—as well as that of my friend the hon. Member for Thirsk and Malton (Kevin Hollinrake) as Minister. The announcements that we make today are built on their efforts to hasten redress payments and quash wrongful convictions.

Earlier in the summer, the new Government announced the launch of the Horizon conviction redress scheme. I am pleased to report that the first payments have been issued and good progress made on processing the claims received to date. As was the case for the group litigation order compensation scheme, the Department will be setting a target to make, within 40 working days, the first offer to 90% of those who have submitted a full claim. Additionally, the Post Office has now settled over 50% of cases on the overturned convictions scheme, with 57 out of 111 cases fully settled. The Department has also now received over 50% of GLO claims and settled over 200 of them.

Progress has also been made on implementing the £75,000 fixed-sum awards on the Horizon shortfall scheme. As of 30 August, over 1,350 claimants who had previously settled below the £75,000 threshold have been offered top-ups to bring them to that amount, and the Post Office will shortly begin making fixed-sum offers to new claimants. Those interventions will have a significant impact on ensuring that postmasters can access redress swiftly and simply. However, we recognise that this option will not suit everyone and does not address all the concerns raised by postmasters and their representatives. That is why we are taking further action today.

The Horizon compensation advisory board recommended last year that we introduce an independent appeals process for the Horizon shortfall scheme. Today I am pleased to announce that we have accepted that recommendation. That appeals process will enable claimants who have settled their claim under the HSS to have their case reassessed, with the benefit of any new information that they were not able to include in the original application. It will be delivered in-house by my Department, and we will apply the lessons learned from redress schemes to date to ensure that the process is easy for postmasters to engage with and that outcomes are delivered at pace. We will announce further details in the coming months.

There will be no obligation for postmasters to appeal their settlement, and no doubt many will be content that their claims have been resolved fairly. I know that financial redress will never fully compensate victims for their suffering, but we want to help bring some closure to postmasters as soon as we can, which is why we will establish the new appeals process as quickly as possible.

In summary, the new Government will do everything in our power to deliver justice for postmasters, to bring them closure and to ensure that such a national tragedy is never allowed to happen again. I commend this statement to the House.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

No doubt that statement will mean a lot to many constituents, including those in my constituency of Sussex Weald. I call the shadow Secretary of State.

--- Later in debate ---

[Jonathan Reynolds]

I am grateful to the hon. Member for his response, and for the tone and collaboration that we tried to model when we were sitting in opposite places in this Chamber. I believe that helped advance what was a difficult piece of legislation to put on the statute book, particularly during a wash-up process, but was the only real vehicle for delivering what we all wanted to see. He has asked me a number of questions; all are absolutely reasonable, and I am happy to respond to them.

In a situation where someone has already received a top-up to £75,000, the hon. Member is right to say that the appeals scheme would not be available. It is a choice between the two best methods of redress and satisfaction for the postmaster. I recognise what the hon. Member has said—that, given the issues with the speed of delivering redress, having that system clogged up would not be satisfactory to anyone—but I think that both options represent reasonable ways forward for people who are in that position.

The hon. Member asked specifically about the remit of the appeals scheme, and I have listened to what he said. The reason we are announcing today that we will take this scheme forward, but will then consult with postmasters to make sure the eligibility criteria are correct—he asked about the timeline, which is just a matter of months—is to make sure that we do not have to revisit the scheme, and can all be satisfied that crucially, postmasters themselves have confidence in it. That is the intention, so I am grateful to the hon. Member for his comments about the remit of the scheme.

The hon. Member asked about legal representation. Yes, that is part of the scheme, again learning lessons from where we have been in the past. As he knows, most of the schemes have now been adjusted to reflect that, but I absolutely take his point about new announcements.

I want to be clear about the difficulty that has existed with the Horizon convictions redress scheme. To update the House, I will give the hon. Member the figures: so far, 180 letters have gone out from the Ministry of Justice. Including those letters and the people who have registered with the Government who perhaps have not all received a letter yet, there are now 276 claimants. I will make the appeal again: while we are doing everything we can with Ministry of Justice colleagues to make sure those letters go out, people can proactively register with the Government. To be frank, this has been a frustration. When the hon. Member and I were having our conversations when we sat in different places in the Chamber, neither of us perhaps knew the state of the database and the records, and—having passed the legislation—the frustrations we would face in getting to people. However, doing so is clearly integral to sorting this out.

Finally, the hon. Member asked about the scheme reviewer. If I may, I will come back to him on that; I will write to him to tell him the up-to-date situation.

In summary, I say again that we will work with all parties and all postmasters to get redress at pace, and to learn the lessons from where things have not gone well in the past, to make sure new announcements carry the confidence of the people who really need to have confidence in them.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

Members should continue to bob if they want to be called. I am going to call everybody, as I know the Secretary of State also wants to respond to everybody. I call the previous Chair of the Business and Trade Committee.

[Liam Byrne (Birmingham Hodge Hill and Solihull North) (Lab)]

I add my congratulations to Sir Alan Bates and Lady Suzanne on what looked like a very happy day.

I welcome what the Secretary of State has set out for the House this afternoon. When our Select Committee reported back in March, we said that trust in the Post Office was fundamentally broken and that the appeals scheme needed to be independent. This is an important step in that direction, but sub-postmasters have told me this morning that there is still a problem with the time it takes to get offers back when an offer is contested. The claimant’s lawyers have a fixed amount of time to put in a claim; when that claim is contested, it is taking far too long for Addleshaws, in particular, to come back and provide a second offer. What comfort can sub-postmasters take from the Secretary of State’s announcement today? This whole House agrees that justice delayed is justice denied.

[Jonathan Reynolds]

I am grateful to my right hon. Friend, who will, I hope, see his work as Chair of the Select Committee reflected in this announcement—specifically, that we are setting the target to issue initial offers to 90% of claims within 40 working days of receiving a full claim. On the point of how that is defined, a full claim is one where, following legal assessment, it is deemed that it does not require any further evidence to assess the claim further. Once that is in, the targets, which his Select Committee rightly called for to make sure redress is delivered at speed, are part of this process.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the Liberal Democrats spokesperson.

[Tim Farron (Westmorland and Lonsdale) (LD)]

I thank the Secretary of State for sight of the statement and, indeed, for his decision to come to the House at this early stage to update us on progress.

I think it is worth saying that we are dealing with a catastrophic injustice that has affected hundreds upon hundreds of families—people who have paid with their livelihoods and, in some cases, tragically, with their lives. There is a complete lack of trust in Government, of whatever political colour, over the last 20 or so years because of this. That is why his answer to the questions raised already about the number of sub-postmasters who have been paid interim payments—only six, on the last data available, under the Horizon convictions redress scheme—is such a key issue. Likewise, as we have heard, the latest data show that fewer than one in six wrongly accused sub-postmasters have received letters confirming the quashing of their convictions.

Given this lack of trust—this mistrust—in Governments of whatever kind and in the Post Office management as a whole, would the Secretary of State also turn his thoughts to rebuilding trust in the Post Office management and in the network in the long term? In the eyes of the public, the brand of the post office is solid, but in the eyes of those who work in the industry and those who may come in as sub-postmasters, it is far less so. We were delighted in my constituency recently to see the reopening of post offices in Shap and Kirby Stephen. It was wonderful to see those two reopenings, but in Grasmere, Hawkshead and Stavely we are without post offices. In all three of those cases, it is in part because the former sub-postmaster, while not always directly affected by the Horizon scandal, but with disgust at the Post Office management, has left the industry and left those villages without a post office.

What can the Secretary of State say to this House and to the current cadre of sub-postmasters, and those who may want to join that cadre, to encourage them? Will he focus on pastoral care, financial support and other things that will bring about a package of inducements and enticements, so that those people who have felt let down so badly by Post Office Ltd management over the last 20 years will feel that the Post Office is something they can commit their lives to for the good of our communities and country as a whole?

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.

--- Later in debate ---

[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.

Oral Answers to Questions

Nusrat Ghani Excerpts

Thursday 25th January 2024 Commons Chamber

[George Freeman (Mid Norfolk) (Con)]

2. What steps she is taking with the Secretary of State for Science, Innovation and Technology to help increase inward investment into the science and technology sector.

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

My Secretary of State was so savvy that she brought in a science Minister and now, under her stewardship, science and technology is booming in the Department for Business and Trade. The UK has the No. 1 tech ecosystem in Europe, raising more venture capital than France and Germany combined. Science and tech is not just for fans; we have now mainstreamed it with the Office for Investment, which is reaching out to companies around the world to highlight the advantages of investing in the UK, bringing in over £5 billion of investment, as was announced at the global investment summit just last year.

[George Freeman]

Mr Speaker, you can see that I am using my freedom on the Back Benches to improve my fitness and to make myself as fit as the Department.

May I take this opportunity to thank and congratulate the Secretary of State and the team at the Department for Business and Trade on the work they are doing, particularly with the global investment summit? There is a wall of money out there globally to invest in UK science and tech—in life science, quantum, fusion and agritech—and we are beginning, finally, to attract that money. What plans does the Department have to make it easier for global investors to deploy money at scale in UK clusters?

[Ms Ghani]

My hon. Friend will know more than most, having had this brief previously. Of course, we are out there sourcing investment for the UK and, as I mentioned, we are already beating France and Germany. Further afield, the UK is the third country, behind the US and China, to reach the landmark of $1 trillion in value. We have the concierge service with the Office for Investment. We have also recently secured £4.5 billion through the advanced manufacturing plan. That, coupled with the research and development budget of around £39.8 billion between 2022-25, shows that we are ready to enable investment in the UK and to manufacture products in this area.

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

Will the Secretary of State and her team pay much more attention to the science and innovation possibilities in the hydrogen sector—that is, hydrogen energy and power? This is something we are good at, and the research is there. We need to be there quickly before the Chinese dominate the market.

[Ms Ghani]

I gently say that the hon. Gentleman should pay attention to the hydrogen strategy, which shows we are leaning forward and ensuring that we can capture the investment, de-risk any of the testing and ensure that intellectual property can be commercialised here in the UK. We of course see hydrogen in the mix in our future energy spectrum.

[Christine Jardine (Edinburgh West) (LD)]

3. What assessment her Department has made of the implications for her policies of trends in the level of operating costs for small and medium-sized enterprises.

--- Later in debate ---

[Nicola Richards (West Bromwich East) (Con)]

18. What steps her Department is taking to help protect supply chains in the context of the disruption to trade in the Red sea.

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

More than 15% of global shipping traffic passes through the Red sea, making it one of the most important strategic waterways in the world. Overall, a whopping 12% of global trade volumes use this trade route and my Department is monitoring the impact of events in the Red sea closely. I was previously the shipping Minister and now I am the Minister for advanced manufacturing, so I know that this is important to industry.

We are working to equip UK businesses with the tools they need to deal with global supply chain issues. Just last week, I published the world’s first ever critical imports and supply chains strategy in collaboration with industry. The strategy includes making the UK Government the centre of excellence for supply chain analysis and risk assessment, supporting our status as the world’s eighth largest manufacturer. This will help UK business to build secure and reliable supply chains, which are vital to the UK’s economy, national security and the delivery of our essential services.

[Mr Speaker]

I am sure the hon. Gentleman does not need to ask a question now, with all you have read out. Come on, Sir Michael!

[Michael Fabricant]

I will think of one, Mr Speaker. As my hon. Friend has said, we are the eighth largest manufacturer in the world—and where is the centre of manufacturing? It is, of course, the west midlands. What advice is my hon. Friend giving to people such as Andy Street about what can be done to support businesses in the west midlands to overcome what I hope is a temporary difficulty?

[Ms Ghani]

My hon. Friend has hit so many markers in that question. He is absolutely right that the west midlands, and Birmingham in particular, are the heart of advanced manufacturing. I suggest that the Mayor catches up on supply chain reporting. I am more than happy to sit down and talk to him about that. We have worked with industry, including in the automotive sector, to ensure that supply chains can be as flexible and resilient as possible. Of course there are concerns about extended routes from that part of the world into Europe, but, as I mentioned earlier, we are the first country in the world to produce a strategy, working with industry to ensure that the UK continues to provide the data that it needs—

[Mr Speaker]

Order. Come on! I call Nicola Richards.

[Nicola Richards]

At a time when we are beginning to see inflation fall, recent developments in the Red sea are extremely concerning, not just in terms of security, but because of the huge cost to shipping. My constituents do not want an increase in prices as a result of the terror attacks. Can the Minister build on the excellent answer she gave to my hon. Friend the Member for Lichfield (Michael Fabricant) by reassuring businesses in my constituency that we will do all we can to maintain the flow of goods to and from the UK?

[Ms Ghani]

Absolutely. The UK will always stand up for the freedom of navigation and the free flow of trade. We take threats to shipping vessels in the Red sea extremely seriously. My hon. Friend is right to note that, fundamentally, there has been an increase in cost potential, including a 124% increase in freight rates, which is why we have produced a strategy and why we have a council that will continue to work with industry to ensure that supply chains are resilient and the situation has the smallest possible impact on our economy.

[Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)]

6. What steps her Department is taking to support businesses in rural areas.

--- Later in debate ---

[Stephen Kinnock (Aberavon) (Lab)]

14. Whether she has had recent discussions with the Chancellor of the Exchequer on taking fiscal steps to help support the steel industry.

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

The Chancellor and I meet regularly, and obviously we know and recognise the importance of the steel sector in the UK economy. Our commitment to the sector is clear, and we will be investing more than £500 million in the Port Talbot site to ensure that steelmaking continues in the UK. Without that investment, the 8,000 jobs at the port and the 12,500 jobs in the supply chain would have been at risk.

We are working with Tata, and we have set up a transition board—the hon. Gentleman knows about that because we both serve on it—and we have provided more than £100 million of support for affected employees and the local economy. Last Friday, Tata announced that it will provide an additional £130 million of support for employees facing redundancy. The option was steel- making no longer continuing at Port Talbot, or the investment that we have provided.

[Stephen Kinnock]

Ministers keep spinning this line that Tata Steel was threatening to close down the Port Talbot works and walk away, but they know that was an empty bluff, because the costs of dismantling and remediating the Port Talbot steelworks were vast and utterly prohibitive. Against that backdrop, let us be clear: is it the case that no strings were attached to the £500 million of taxpayers’ money that has been given to Tata Steel? Was that £500 million given by the Prime Minister to Tata Steel with a green light to make 2,800 steelworkers redundant?

[Ms Ghani]

I would not want steelworkers to think that we are not working together, and the hon. Member and I work together and will be working together to ensure that steelworkers are protected as much as possible. I think it is extraordinary that the position he is now putting forward is that it would have been better to risk the absolute loss of steelmaking in the UK and then allow the taxpayer to pick up the cost to manage the site.

[Stephen Kinnock]

It was a bluff.

[Ms Ghani]

I believe it far more preferential that we made the largest investment ever in steelmaking to protect more than 5,000 jobs at Port Talbot and the 12,500 jobs in the supply chain—[Interruption.] Fundamentally, we have steelmaking—

[Mr Speaker]

Order. It might be better that that conversation is carried on outside, rather than going on across the Benches while the Minister is replying.

[Ms Ghani]

At the heart of our decision was two things: continued steelmaking at Port Talbot and protecting steelworkers.

[Holly Mumby-Croft (Scunthorpe) (Con)]

We have recently heard from my right hon. Friend the Secretary of State for Defence how the west is facing “a pre-war world”. Will the Minister ensure in her conversations with the Treasury that it understands the vital strategic importance of a virgin steelmaking capability here in the UK?

[Ms Ghani]

My hon. Friend has a huge amount of knowledge of the steel sector and is a huge champion for Scunthorpe. She knows that we are working incredibly hard with the company in her constituency, and we are waiting for it to respond to the business plans going forward. We know how important virgin steelmaking is, and we accept, because technology has moved on, that going forward 90% of all steel can be made in electric arc furnaces.

[Mr Speaker]

I call the shadow Minister.

[Sarah Jones (Croydon Central) (Lab)]

Mr Speaker:

“The UK steel industry, the trade unions, and Labour are…proposing an industrial policy worthy of a serious industrial country.”

Those are not my words but those of the world economic editor of The Daily Telegraph writing yesterday. He also said that

“the Government’s minimalist plan…does just half the job, leaving the UK with a stunted second-tier industrial base, the only G20 country lacking a sovereign capability in ‘weapons grade’ primary steel.”

He is right, isn’t he?

[Ms Ghani]

The £28 billion that Labour is proposing has no plan behind it, and we are not told what hard workers across the country would have to pay to fill that black hole. Labour has asked for a transition to green steel. It would want us to protect steelworkers and obviously would want to protect advanced manufacturing in the UK. Customers want cleaner steel. Port Talbot could no longer function with its ageing blast furnaces, and our package will save 5,000 jobs at Port Talbot.

[Rachael Maskell (York Central) (Lab/Co-op)]

15. What steps she is taking to help support the growth of co-operatives and social enterprises.

--- Later in debate ---

[Cherilyn Mackrory (Truro and Falmouth) (Con)]

Mining is coming back to Cornwall. This week, as chair of the all-party parliamentary group for critical minerals, I met industry leaders from around the country at a roundtable here in this place to talk about the challenges the critical minerals industry is facing. Will the Minister agree to come to a meeting to discuss the challenges facing the industry? Demand is going up exponentially, but it is a high risk industry and it needs her help.

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

Obviously it is important to secure investment in mining in Cornwall, particularly the mining of lithium, which will be critical for our car batteries. I certainly agree to be interrogated by the APPG, of which my hon. Friend is a powerful leader, and I congratulate her on securing that investment in Cornwall.

[Dr Rupa Huq (Ealing Central and Acton) (Lab)]

T6. Could Ministers fix the illogical loophole faced by Pixipixel, a lighting and camera hire firm in Acton? It supplied the equipment for the first two series of a popular ITV drama called “Grace”, which is set in Brighton, but because of Ofcom rules about the imposing of regional spending on public service broadcasters, it has now been banned and gazumped by a company in Manchester. Can this be sorted out, because—

--- Later in debate ---

[Kenny MacAskill (East Lothian) (Alba)]

T7. Ferguson Marine, the last remaining shipyard on the lower Clyde, is threatened by the way in which its current work is configured. It badly requires an order from CalMac for seven small island ferries. The issue of procurement is one for the Scottish Government and their agencies, but will the Minister ensure that no impediment, no obstacle and no rules that are under her control will prevent the order from being given directly by the Scottish Government to Ferguson Marine if they so wish?

[Ms Ghani]

I am more than happy to sit down with the hon. Member to discuss furthering his case, but the overriding fact, which he mentioned, is that the decision sits with the Scottish Government. In the UK we have the National Shipbuilding Office, which provides a wraparound service not only to secure contracts but to ensure that ships are built in UK shipyards.

[Helen Morgan (North Shropshire) (LD)]

T9. Importers of short-life items in my constituency, such as seed potatoes and chilled equine semen, are worried about impending import controls. Will the Minister meet me, and business leaders in North Shropshire, to discuss how they can continue their businesses in the face of these imminent problematic controls?

Oral Answers to Questions

Nusrat Ghani Excerpts

Thursday 30th November 2023 Commons Chamber

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

The Government are clear that violent and abusive behaviour towards any public-facing worker is never acceptable, and we recognise the implications that such incidents can have on businesses as well as victims. On 23 October, the Government launched a retail crime action plan, which includes a commitment to prioritise police attendance at the scene where violence has been used towards shop staff, where an offender has been detained by store security or where evidence needs to be secured by police personnel. The Government also launched Project Pegasus, a unique private-public partnership that will radically improve the way retailers are able to share intelligence with the police.

[Daniel Zeichner]

In recent weeks, I, like many colleagues, have visited shops in my constituency as part of USDAW’s—the Union of Shop, Distributive and Allied Workers—Freedom from Fear campaign. I have heard from staff about the daily levels of verbal and sometimes physical abuse they face, and the huge losses from theft. Will the Minister say more about what the Government are doing to stem that tide of lawlessness, particularly for independent retailers who may not be part of the Pegasus Project? Will she also say how much is being lost to theft, because that costs all of us as customers, as well as costing retailers?

[Ms Ghani]

The hon. Gentleman makes an important point. This is not a victimless crime; it impacts shops, workers and customers. Credit is due to the hon. Gentleman for visiting the shops in his constituency. Overall crime is down by 54% since 2010, and down by 10% since last year. However, he is right that shoplifting is up, which is why the action plan is so important. The action plan works for our high streets because it is about ensuring that the police are determined to collect evidence and to go after repeat offenders and organised gangs.

Project Pegasus is key because it is a public-private partnership. We have created an extra offence, with a longer sentence, for those who are violent towards a shop worker. With those extra programmes of work and evidence collection, more people will be convicted, so those who are involved in crime against shops will spend some time in prison.

[John Penrose (Weston-super-Mare) (Con)]

8. If she will make a comparative assessment of the adequacy of the number of statutory duties of the Competition and Markets Authority and other regulators reporting to her Department.

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

The Government recognise the vital role of the steel sector, and are working with the sector to achieve a sustainable future. We have announced £500 million of support towards a joint £1.25 billion investment with Tata Steel to achieve the transformation of Port Talbot, and we are also in talks with British Steel. We have provided the steel sector with £730 million in energy costs relief since 2013, and announced the British industry supercharger—decisive measures to reduce energy costs for energy-intensive industries.

[Tonia Antoniazzi]

In communities across the country—particularly in Wales through Port Talbot—steel has created high-paying, productive jobs for generations, but we are the only G7 country with a steel industry in decline. Thousands of jobs are being lost. What we need is a long-term plan that supports steelworkers and their communities to maintain those good jobs into the future and transition to net zero, so why is the Minister making short-term decisions instead of delivering on the long-term industrial strategy that communities such as mine, and our steel industry and workers, desperately need?

[Ms Ghani]

That is just not correct, especially the comparisons to the G7. The decisions over Port Talbot have been hanging around for quite some time, and we were able to work with Tata Steel to ensure that jobs were confirmed long into the future. Tata Steel employs more than 8,000 people, and that was under serious threat until the investment was secured. Now consultation is taking place with the unions, and the reality is, as the media have noted, that the unions themselves are not sure how they want to take this forward. We were absolutely sure that we wanted steelmaking in that area and that jobs should be secured. That is why we offered the support that we did.

[Holly Mumby-Croft (Scunthorpe) (Con)]

I have written again to the Secretary of State to seek specific confirmation of the Government’s position on a virgin steelmaking sovereign capability in this country. Will she ensure that that specific question is addressed when I receive a response?

[Ms Ghani]

My hon. Friend is first and foremost an advocate for the steelworks and steelworkers in her constituency. Obviously that letter will be on its way, and I thank her so much for raising it.

[Sarah Jones (Croydon Central) (Lab)]

We are used to this Government flip-flopping all over the place. It would be funny if it were not so serious for business, exports and jobs. So when we heard the Treasury telling everyone who would listen that the Government’s response to the carbon border adjustment mechanism would be in the autumn statement, we were not surprised that it was not. The future of steel investment and growth relies on a clear and certain path from Government. We cannot have our business disadvantaged any more, so what is the decision on the CBAM? If this Government cannot decide, is it not time to make way for one who can?

[Ms Ghani]

Decisions have to be taken while responding to the consultations that take place. We have been absolutely determined to ensure that steelmaking will remain competitive in the UK, which is why we have been able to support the steel sector with high energy costs and put over £1 billion in place to deal with decarbonisation technology. When it comes to Tata, the support we have pledged involves an investment of over £1 billion to ensure that jobs remain secure in the future, and negotiations continue with British Steel as well. That is the support that we have provided and will continue to provide for steel in the UK.

[Matt Vickers (Stockton South) (Con)]

T1. If she will make a statement on her departmental responsibilities.

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[Sir Edward Leigh (Gainsborough) (Con)]

On Scunthorpe, what major economy does not have a blast furnace and the ability to make virgin steel?

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

Almost all the G20 countries have operational blast furnaces, and a number of those are transitioning to electric arc furnaces as well. We know the importance of Scunthorpe, which is a key driver of economic growth. British Steel provides a third of all domestic production supplied to the construction and rail industries. We continue to be in negotiations to make sure that we secure the best deal, and one that is good value for taxpayers, when it comes to Scunthorpe.

[Liam Byrne (Birmingham, Hodge Hill) (Lab)]

On Tuesday, we finally had answers from Lisa Wilkinson about the mistakes that led to the collapse of that much-loved firm, but Ms Wilkinson was not able to answer why 70% of the profits in the last four years were paid out in dividends to family trusts while the deficit in the pension fund amounted to now £50 million. Will the Secretary of State ensure that regulators explore every option to claw back those dividends so that Wilko pensioners are not short-changed?

Oral Answers to Questions

Nusrat Ghani Excerpts

Thursday 14th September 2023 Commons Chamber

[Holly Mumby-Croft (Scunthorpe) (Con)]

2. What steps her Department is taking to support the steel industry.

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

I am in constant conversations with specific companies to do with steel, including British Steel in my hon. Friend’s constituency, but of course those conversations are often commercially sensitive. I was delighted to speak at the event she hosted in Parliament to celebrate the launch of the Government’s updated steel procurement policy note, which will help to make opportunities more visible and maintain a level playing field for UK steel producers. In the financial year 2021-22, relevant public procurers bought around £365 million-worth of UK produced steel. Furthermore, the Government have provided around £730 million in energy costs relief to the sector since 2013.

[Holly Mumby-Croft]

Can my hon. Friend set out specifically what is being done to ensure the continued production of virgin steel in the UK?

[Ms Ghani]

Steel is vital to the UK, but we know that the industry needs to decarbonise for a sustainable future. The Paris agreement made it clear that the sector had to reduce its global emissions by 93% by 2050. The Government are actively engaging with the sector on how best to achieve that, but decarbonisation pathways for specific sites will be commercial decisions for individual companies. Industrial sectors, including steel companies, can bid into Government funds worth hundreds of millions of pounds to help them go green. As I mentioned, we have done a huge amount to support energy intensive industries.

[Bill Esterson (Sefton Central) (Lab)]

The UK is the only major steel-producing nation where production is falling, but the Minister and her colleagues have been telling us for months that they cannot guarantee the use of UK-made steel in Government contracts, especially in the military. The thing is that the steel producers say that they can make whatever their customer asks by changing the production line. Will the Minister confirm that the reason we have a problem with steel in this country is the Government’s refusal to view it as a strategically important industry? The Conservatives’ sticking-plaster politics have failed steelworkers, as we have seen at Port Talbot.

[Ms Ghani]

I fundamentally disagree with the question—well, it was more of a statement. I made it clear when I took on this role that we would assess the level of steel in procurement contracts, and we have put together the steel procurement policy note, which will address how much steel is being procured in our contracts in the UK. We are doing a huge amount to ensure that the different types of steel that are needed are produced. We know how valuable the sector is, which is why we provided support with high energy costs and why we have a decarbonisation budget that the industry can link into. I fundamentally disagree with the hon. Gentleman’s proposition.

[Mr Speaker]

I call shadow Minister Sarah Jones and welcome her to her new position.

[Sarah Jones (Croydon Central) (Lab)]

In Wales, it is reported that this Government will spend half a billion pounds to make thousands of Port Talbot steelworkers redundant. Head north to Derby to a train assembly plant, where thousands more jobs are under threat because this Government bungled High Speed 2. Head around the UK coastline and the Government have managed to misjudge industry so much that they secured zero offshore wind contracts. That is a UK tour of almighty Conservative incompetence. Labour will harness this country’s talent. Will the Minister explain how many jobs the Government are losing us at Tata Steel, how many jobs they are losing us in Derby, how many jobs they are losing us in offshore wind, and why they are so intent on levelling down our great British industries?

[Ms Ghani]

I welcome the hon. Member to her post, but I suggest that leading on stories in the paper is not a good way forward. That is all speculation; we do not comment on commercial decisions. The reality is that there is £730 million in support with energy costs and more than £1 billion of support with decarbonisation. She talks about plans. Well, I am not sure if the Labour party’s plan stands for anything because it flip-flops so often. It is not just me who says that; let us reflect on a statement made by a union leader. They said that Labour was not only just an ’80s tribute act, but that it tends to sit on a “wobbly fence”. Who knows what Labour will say tomorrow after a statement made today?

[Peter Aldous (Waveney) (Con)]

3. What steps her Department is taking to support the shipbuilding sector.

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

My hon. Friend asks a timely question, because this is London International Shipping Week, and I have engaged with the UK Chamber of Shipping and Maritime UK. This week, I was at the International Maritime Organisation, which was hosting an exhibition called “Rewriting women into maritime history”, sponsored by the Lloyd’s Register Foundation—I mention in particular Nicola Good and Erne Janine, who made me this scarf reflecting on women in maritime. We are doing a huge amount, including launching the shipbuilding credit guarantee scheme to support our shipyards here in the UK.

[Peter Aldous]

I am most grateful to my hon. Friend for that answer. The disappointing outcome of last week’s contracts for difference auction in respect of offshore wind was a wake-up call that clear strategies are required if we are to retain our position as a global leader in that industry. That includes support for the supply chain, of which service operation vessels are a vital component. Can she confirm that the national shipbuilding strategy will be reviewed to fully take into account this great opportunity?

[Ms Ghani]

We are proud of the UK’s reputation as a leader in the offshore wind sector. Together with industry, we have delivered the four largest operational wind farms in the world. The National Shipbuilding Office has done a huge amount of work in that area and will do even more with the new shipbuilding guarantee scheme. I think my hon. Friend’s other question relates to the Department for Energy Security and Net Zero. This is London International Shipping Week, and our offshore wind farms and all our vessels are being promoted heavily.

[John Spellar (Warley) (Lab)]

May I draw the Minister’s attention to the fact that the three fleet solid support vessels for the Royal Navy are massive—equivalent to two aircraft carriers? Has she discussed with the Ministry of Defence why they will be built mostly in Spanish shipyards, rather than in British shipyards by British workers to sustain our shipbuilding industry? Does she know of any other shipbuilding country that behaves like this?

[Ms Ghani]

I have indeed discussed it with the Ministry of Defence and the National Shipbuilding Office. We want to make sure not only that the contracts for the work are managed here in the UK, but that we are using UK steel.

[Dame Andrea Leadsom (South Northamptonshire) (Con)]

4. What steps she is taking with Cabinet colleagues to help increase international investment in Northern Ireland.

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[Andrew Jones (Harrogate and Knaresborough) (Con)]

12. What steps her Department is taking to support business exports.

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

Businesses are at the heart of the Government’s export strategy, “Made in the UK, Sold to the World”, and of our shared ambition to reach £1 trillion in annual exports by 2030. In the past year, the UK has become the fifth largest exporter of goods and services in the world. Just last week, I personally led a delegation of 20 businesses to the Three Seas summit in Romania, connecting with over 1,500 representatives to help secure contracts, work and export opportunities in the region’s 13 member states.

[Andrew Selous]

In my constituency, companies such as EyeOL, Lindal Valve, Peli BioThermal, Friction and Signature Flatbreads all export globally, along with 198 smaller businesses that export through Amazon, yet apparently only 10% of companies export. What more can we do to get businesses to export, not just to Europe but globally? Apparently, businesses that export pay higher wages, so this is part of levelling up, too.

[Ms Ghani]

My hon. Friend is a great champion for his businesses and helping them to export. He is absolutely right that free trade agreements and memorandums of understanding are opening up new markets for us, but of course we want to make sure that everyone makes the most of those opportunities. That is why we are ensuring that UK exporters have the skills they need through our innovative export academy; the information they need to capitalise on new deals through the FTA utilisation strategy; the advice they need through the export support service; and the financial backing they need through UK Export Finance. My hon. Friend also made the very powerful point that companies that export pay higher wages.

[Virginia Crosbie]

Anglesey’s freeport is a fantastic opportunity to boost the economic prosperity of my constituency of Ynys Môn. Working with the Institute of Export and International Trade, Bangor University and Grŵp Llandrillo Menai, our Anglesey freeport is set to create the first Welsh trade centre of excellence. Does the Minister agree that that trade centre is central to local people having the skills to take advantage of the high-skill, high-wage employment opportunities that the freeport will deliver, and that it will be the start of Anglesey’s economic renaissance?

[Ms Ghani]

I think we can all agree that my hon. Friend has campaigned powerfully to secure that freeport and the opportunities it will create for many of her constituents. Good news is already coming in, with Westinghouse saying that it will headquarter there, creating jobs and opportunities. Of course, we are looking forward to getting more details and ensuring that the trade centre for excellence is located there too, which will provide another win for my hon. Friend.

[Andrew Jones]

I ran export programmes in my business career before coming to this place, and I always talk to the companies I meet about whether they are exporting and what more can be done.

[Ms Ghani]

rose—

[Andrew Jones]

Steady—I haven’t asked my question yet! The message from that experience is that perceived barriers can deter activity—perhaps perceived risk or complexity. What more can be done to link potential exporters with mentors who can share their experience, overcome those perceptions and get more companies exporting?

[Ms Ghani]

My hon. Friend has a huge amount of experience in this area, and I am very grateful for all the advice he provides. He makes a very good point. That is why our campaign, “Made in the UK, Sold to the World”, uses localised marketing for small businesses across the country to help them make the best of their abilities. To my hon. Friend’s point, we have a growing cohort of over 360 successful champions across the UK—entrepreneurs and business leaders who can share their experience and inspire new firms to become exporters.

[Liam Byrne (Birmingham, Hodge Hill) (Lab)]

New analysis from the House of Commons Library that I am publishing today shows that since 2010 our trade with dictatorships has grown by over £135 billion and that it is growing twice as fast as our trade with the free world. Trade dependence on dictatorships is a risk, so when will the Minister set out a plan to define and de-risk our critical supply chains and begin growing our trade with nations that are free?

[Ms Ghani]

I am responsible for supply chains and critical minerals too; several months ago, I refreshed our critical minerals strategy. We are looking at how we ensure that we are building resilience and ensuring that our supply chains are stable.

I am also working with a number of industry representatives to put in place an import supply chain strategy as well. We know that there are kinks in supply chains and that there are issues of economic coercion around the world. We want to ensure that we have stable supply chains to protect our advanced manufacturing sector. [Interruption.] From a sedentary position, my right hon. Friend the Secretary of State points out that I am also the sanctions Minister. We are ensuring that that work is now co-ordinated, not only across Whitehall but internationally.

[Andy McDonald (Middlesbrough) (Lab)]

Those of us on the Business and Trade Committee are very much aware of the sterling work done by officials in furtherance of the trade deal with India. However, in the revelation at the G20 summit of the Partnership for Global Infrastructure Investment—the counter to China’s belt and road project through a US-backed trade corridor to speed up links between Europe, the middle east and India—there was no mention of the UK. Did our Government decline to be involved or were we not invited?

[Ms Ghani]

I was in front of the Select Committee; that session would have been afterwards. I have just been informed that the Prime Minister is very much focused on securing a trade deal and on the other details that the hon. Gentleman raised. Because it is a Select Committee issue, I will make sure that he gets all the details in writing.

[Richard Foord (Tiverton and Honiton) (LD)]

During the recess, I visited Heathcoat Fabrics, an innovative export business in Tiverton; its achievements include selling to NASA a device that helped land the Mars rover on the surface of Mars. Earlier this year, HMRC rejected Heathcoat’s research and development claim without so much as a meeting. Will the Minister talk with colleagues at the Treasury to establish why Heathcoat Fabrics and other innovative export businesses are having R&D claims rejected this year?

[Ms Ghani]

I say simply that yes, I will.

[Mr Speaker]

We now come to the shadow Minister.

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

According to the International Monetary Fund, British exports to France and Germany since 2019 are down—by 14% to France and 17% to Germany. US exports to both are up by 20%; Canada’s are up by 23% and Italy’s are up by 29%. Ministers will not back an industrial strategy, have cut funding to get businesses to trade shows and will not negotiate a veterinary agreement. Why does this Minister think that everyone else has got so much better recently at selling things to our nearest neighbours?

[Ms Ghani]

Members choose which numbers they want to throw out, but those do not necessarily reflect reality. I thought it was fantastic that we are now the eighth largest manufacturer in the world; I believe that we leap-frogged France—leap-frogging the French is always good to get on the record.

Actually, exports are most definitely up. In the 12 months to June 2023, UK exports rose by £139 billion, an increase of 8% once adjusted for inflation. In the same period, goods exports reached £428 billion, an 11% increase when adjusted for inflation. Perhaps we should reflect on the opportunities for all the businesses in our constituencies.

[Kenny MacAskill (East Lothian) (Alba)]

7. What recent discussions she has had with (a) NGOs and (b) charities on the inclusion of human rights considerations in trade negotiations.

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[Patrick Grady (Glasgow North) (SNP)]

9. What recent assessment she has made of the impact of her trade policies on the cost of food.

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

Food prices are driven by many pressures, including the global economic climate. We recognise the important role that trade can play in improving food security through diversification of supply chains. Our programme of free trade agreements is securing access to global supply chains, removing barriers and lowering costs for traders. Furthermore, in 2022, 84% of agricultural and food imports entered the UK tariff-free. By delivering trade deals and working with international partners, we are ensuring that British consumers have access to good-quality and good-value food.

[Patrick Grady]

Will the Minister explain how the Government’s plans for a £43 inspection fee on each consignment of food imported from the European Union represent barrier-free trade? Can she tell small food retailers, restaurants and their customers in Glasgow North when or whether they will have to pay this Brexit tax and the higher prices it will lead to? Can she also remind the House whether higher food prices as a result of Brexit were part of the Leave campaign prospectus?

[Ms Ghani]

I know the hon. Member wants to put all these anxieties on Brexit and forget about all the opportunities we are securing with trade agreements around the world. The issue he raises fundamentally sits at the doorstep of the Cabinet Office and the Department for Environment, Food and Rural Affairs, and we are working very closely with them to resolve it.

[Mr Speaker]

I call the Scottish National party spokesperson.

[Richard Thomson (Gordon) (SNP)]

As if the future stoking of inflation through extra Brexit red tape was not bad enough, businesses are already having to cope with uncertainty, the lack of a level playing field and the threat to our own food safety and security through the failure to introduce checks of our own. Given that Ministers were saying as recently as April that those checks will begin on 31 March, can the Minister explain how businesses are expected to get to grips with all this turmoil in Government policy given their tendency to keep kicking the can down the road over border checks?

[Ms Ghani]

Food inflation is a global issue: it is not a problem just here in the UK. Many factors influence food prices globally, notably energy costs. Global wholesale food prices have been falling since March and sometimes that can take time to reach consumers. In July, UK food inflation was just over 14%, down from 17%. The hon. Gentleman did not specify which issue he was touching on, but if it was to do with sanitary and phytosanitary controls for goods from the EU, that will be introduced and in place by 31 January 2024.

[Richard Thomson]

The Government could stop making existing global problems even worse when they apply to the UK—I was following up on the question from my hon. Friend the Member for Glasgow North (Patrick Grady) about the cost of checks on imported food—but the only thing worse than bad border checks is no border checks at all. We are no longer imposing SPS checks on food coming in from the EU. Is the Minister proud that, under the guise of taking back control, she is part of a Government who have given away control instead?

[Ms Ghani]

I referenced in my previous response the SPS controls; they were not in place when we were in the EU so I am not sure exactly what the hon. Gentleman’s anxiety is.

[John McDonnell (Hayes and Harlington) (Lab)]

10. What plans she has for accession to the comprehensive and progressive agreement for trans-Pacific partnership.

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[Jeff Smith (Manchester, Withington) (Lab)]

13. What steps she is taking to increase trade with European countries.

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

Europe remains a vital destination for British exports. UK businesses exported more than £416 billion in the year to March 2023, up 24% in current prices on the previous year. We are engaging extensively with key European partners. This weekend, my right hon. Friend the Trade Secretary will attend the annual UK-Italy bilateral conference to advance the landmark ministerial dialogue on export and investment promotion launched in February, the first agreed between the UK and any EU country.

[Jeff Smith]

Here is an issue that could be discussed at that meeting: the youth group travel sector is worth £28 billion to the UK economy, but that two-way trade has collapsed since Brexit. The Prime Minister made a vague commitment in March that there would be an agreement for French school groups to visit the UK. We have heard no more details, and anyway we need a wider agreement to include other countries. When will the Government sort out this problem?

[Ms Ghani]

I think this matter sits not just with our Department, but with the Department for Education. If the hon. Gentleman will allow, I will write to him formally and make sure he gets an update on this issue.

[Deidre Brock (Edinburgh North and Leith) (SNP)]

14. Whether she has had recent discussions with (a) Cabinet colleagues and (b) the Scottish Government on support for Scotland’s hospitality sector.

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[Dr Luke Evans (Bosworth) (Con)]

In August, I was lucky to be invited to the 70th anniversary of Caterpillar being founded in my constituency. It was the first place outside the US it set up a base in, and it now employs 1,300 people, making things such as the electric backhoe loader. Will my hon. Friend congratulate Caterpillar on its investment here, from where it exports across the world? Would she like to come and see exactly what it does in Bosworth?

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

I join my hon. Friend, a great champion of Bosworth, in congratulating Caterpillar on 70 years and 1,300 employees. That is fantastic. I look forward to going along and having a go on the electric diggers.

[Judith Cummins (Bradford South) (Lab)]

T5. The loss of Wilko is devastating, in particular for the thousands of workers who will lose their livelihoods. Will the Secretary of State confirm that she will seek answers from Wilko management about why clear warnings were ignored and the business was driven into the ground, at the same time that shareholders collected hundreds of millions in dividends? Will she meet me and the GMB trade union to assure us that those basic failures will not be repeated?

--- Later in debate ---

[Kerry McCarthy (Bristol East) (Lab)]

Over the recess, I had the pleasure of visiting the historic Harland & Wolff shipyard in north Devon, where we talked about the potential for UK shipbuilding jobs linked to the offshore renewables sector. Given last week’s disappointing auction round, to put it mildly, what can the Minister say to convince the shipbuilding industry that there is a future for it in making those service vessels?

[Ms Ghani]

I was with Harland & Wolff just last night for London International Shipping Week, and the firm is really excited about the shipbuilding credit guarantee scheme, which provides Government-backed loans of up to £500 million to ensure that shipbuilding continues to thrive in the UK. That is a product for which the industry has been asking for many years, and we have been able to deliver it this year.

[Patrick Grady (Glasgow North) (SNP)]

Ministers have spent the past hour or so telling us, in the face of overwhelmingly contrary evidence, that Brexit is just the most wonderfullest thing ever to have happened in the history of the entire universe. Will the Secretary of State level up with us for a minute and tell us whether there is anything at all about Brexit that she finds regrettable, disappointing or frustrating?

Oral Answers to Questions

Nusrat Ghani Excerpts

Thursday 29th June 2023 Commons Chamber

[Stephen Kinnock (Aberavon) (Lab)]

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

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

The Paris agreement made clear that the steel industry needs to cut emissions by 93% by 2050, and the Government recognise the vital role that the steel sector plays in our economy. The 2021 net zero strategy sets out our aim to make the transition to a low-carbon economy, and reaffirms our commitment to continuing to work with the steel industry on decarbonisation.

[Stephen Kinnock]

Hundreds of steelworkers gathered in Westminster yesterday to make absolutely clear their feeling that the Government are not doing enough, particularly in comparison with competitor nations, when it comes to investment in the transition to decarbonised steel. The numbers do not lie. The Government are also worryingly slow in introducing a carbon border adjustment mechanism. UK Steel has estimated that nearly 23 million tonnes of non-EU steel could flood the UK market if the UK fails to introduce its own carbon border adjustment mechanism at the same time as the EU in 2026. When will we see the Government stepping up and investing in green steel as is being done in competitor countries, and when can we expect the introduction of a British CBAM?

[Ms Ghani]

We have been supporting the steel industry, with more than £1 billion available in grants to help decarbonise the sector and the provision of more than £730 million to cover energy costs since 2013. The CBAM is clearly an issue for many countries, not just ours. We have just finished one consultation, and will produce a response in due course. A transitional reporting phase is due to start in October, with full introduction in 2026. The EU is still developing details about CBAM implementation, and has a consultation open on proposed reporting requirements until 11 July. I know that the hon. Member chairs the all-party parliamentary group for steel and metal related industries, and I urge him to ensure that all businesses express their views as strongly as possible. I think we are meeting on Monday to make sure that we can provide a substantial response.

[Mr Speaker]

I call the shadow Minister.

[Bill Esterson (Sefton Central) (Lab)]

The Minister said that she recognises the vital role that steel plays in this country, but the UK is the only country in the G20 where steel production is falling. It is also the only G7 country whose Government do not insist on using domestically produced steel in defence contracts. Meanwhile, UK steel producers pay 62% more than their German counterparts for electricity. Labour’s £3 billion green steel plan will give our industry the bright future that other countries are offering their steel sectors. Labour believes in our steel; why do this Government not?

[Ms Ghani]

I am not sure where Labour Members will get the money to fund that programme of work. I have not even got to the end of reading this paper but they will probably U-turn by the time I do, so I am not sure how sensible it is going to be. We have provided more than £1 billion for decarbonisation, unprecedented support to help with energy costs, and just recently, there was fantastic news from Celsa, when it was able to repay a Government loan of £30 million that we provided to them, sensibly spending taxpayers’ money. There is and always has been support available. When it comes to procurement, it is absolutely right that we do everything we can to make sure that we have UK firms procuring UK steel.

[Martyn Day (Linlithgow and East Falkirk) (SNP)]

3. What recent assessment she has made of the potential impact of her Department’s trade policies on food prices.

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[Neale Hanvey (Kirkcaldy and Cowdenbeath) (Alba)]

8. What recent assessment her Department has made of the potential effect of the UK’s withdrawal from the European single market on business and trade.

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

Having regained our regulatory sovereignty now that we have left the European Union, we are now able to ensure that our regulation is tailored to the UK economy, supports our businesses and protects our consumers. Having left the single market, we can focus on UK trade with the world, where total trade is up 24%, so the answer to his question is that the effect is that total trade is up.

[Neale Hanvey]

Resilient and effective routes to market are essential for trade. The congestion that is currently being experienced at Dover is a significant barrier to effective trade. We can add to that the HGV miles from Scotland to the south-east and the impact on the quantities carried, on perishables and on costs, never mind the environmental impact. Will the Minister meet me to discuss how we reintroduce direct links from Scotland to mainland Europe and ensure trade is friction-free from Scotland?

[Ms Ghani]

I do not think the hon. Member heard my answer: trade is up. The reality is that this scaremongering just has to stop. The scaremongering is basically a cover for petty nationalism, and I would ask him to be passionate about the market that matters, which is between Scotland and England.

[Neale Hanvey]

rose—

[Ms Ghani]

If the hon. Member was passionate about Scottish businesses and Scottish jobs, he would be passionate about the single market that matters.

[Luke Hall (Thornbury and Yate) (Con)]

9. What steps she is taking to implement the Neonatal Care (Leave and Pay) Act 2023.

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[Jessica Morden (Newport East) (Lab)]

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

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

The Government are actively engaging with the steel industry for a sustainable future, and my right hon. Friend the Business Secretary recently visited Tata and British Steel to see work that is under way. Since 2020 the Government have provided some £35 million in direct funding to support steel producers, on top of the hundreds of millions of pounds in energy price relief for the sector since 2013.

[Jessica Morden]

I echo the earlier comments of my hon. Friend the Member for Aberavon (Stephen Kinnock) on the greater need for support to help our steel sector decarbonise. Steelworkers from my constituency rallied in Parliament Square yesterday, calling for the Government to support our steel sector, yet they will have heard the Prime Minister’s poor response to my hon. Friend the Member for Ogmore (Chris Elmore) at Prime Minister’s questions, when he merely referred to pre-existing packages of support and funding that was not exclusive to steel in the first place. When will the Government accept the scale of the challenge and commit to helping?

[Ms Ghani]

We accept the scale of the challenge; it is a global challenge to decarbonise the sector and many countries are feeling it. However, a potential £1 billion in support is not a small measure—it is a large measure. Dealing with the procurement process to ensure that we have UK contractors securing UK steel in their programmes of work is not a small task, nor is dealing with energy prices. We have provided more than £730 million. When the sector needs support and we know it is a valid use of taxpayers’ money, we have stepped in, such as with the more than £30 million in Government loans to Celsa Steel in 2020. That secured 1,800 jobs, and the money has been returned to the taxpayer. We are more than happy to work with the hon. Lady and all Members who have steel firms in their constituencies, but we are going to provide steady support for the long term.

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

16. What steps her Department is taking to help reduce potential barriers to trade for Cornish businesses.

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

We are targeting a global hit list of barriers whose removal will deliver massive new opportunities for UK businesses throughout the country, including in Cornwall. It is estimated that that will be worth more than £20 billion over five years. The Government are working to open up new markets, including for Cornish farmers. British lamb is now being exported to America for the first time in over 20 years, and British beef is being sent to the Philippines.

[Mrs Murray]

Many of the businesses in my constituency pay an additional tax by way of a toll to cross the Tamar, which can run into many thousands of pounds for them. What representations has the Department made to the Department for Transport to have that additional tax, which can make it harder to compete with firms in the rest of the UK, removed?

[Ms Ghani]

I thank my hon. Friend for bringing that to my attention. She is such a powerful voice for Cornwall. I am surprised that the Department for Transport has not yet buckled, because I know what a champion she is for her constituency and the region. I will ask my team to engage on this matter with their counterparts at the DFT and the Department for Levelling Up, Housing and Communities. I know that she will not stop until she gets what she deserves for her constituents, so I am more than happy to give the strength to her elbow.

[Dr Luke Evans (Bosworth) (Con)]

17. How many trade deals have been agreed since 2019.

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[Siobhan Baillie (Stroud) (Con)]

I am concerned that the UK is being left behind on hydrogen internal combustion engines. The EU and the USA are now recognising hydrogen combustion engines as zero emission, but the UK is refusing, which means that the automotive transformation fund for industrialising the technology is not available. I am working with brilliant companies such as BorgWarner in Stonehouse and the Renewable Hydrogen Alliance to raise this issue. I have spoken to the Secretary of State for Transport and I am raising it with the Prime Minister; I hope that my right hon. Friend the Secretary of State for Business and Trade will use her brilliant brains on this matter too.

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

I hope that my hon. Friend will allow me to use my brain to help unlock this with the Department for Transport. We have the automotive transformation fund and the Advanced Propulsion Centre, so we are doing a huge amount of work in this space to ensure that we are not only on the cutting edge of electric zero-emission vehicles, but looking at what the opportunities are for hydrogen. We do not want to be left behind anywhere in this space, but we do need to align ourselves with the rest of our Departments, and I will do so.

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

T2. The Fresh Produce Consortium, which represents 70% of the UK’s fresh produce supply chain, recently warned that post-Brexit import charges will hit small and medium-sized enterprises the hardest. Does the Minister accept that the post-Brexit trade deals are driving up already soaring food prices, as well as hitting small food producers at a time when they are facing real difficulties as a result of increased operating costs?

[Richard Graham (Gloucester) (Con)]

Over a third of the value of every Airbus sold in the world comes from the United Kingdom’s aerospace manufacturing—whether it is wings, engines, landing gear or other avionics—but all of the Airbus sales are recorded in international statistics as exports from France because the final take-off is from Toulouse. What can the Department do to try to make sure that the value of these exports, especially to the fast-growing Asia-Pacific region, is recognised as being partly from the UK?

[Ms Ghani]

This is a great opportunity to talk about Airbus’s 500-plane deal with Indian airline IndiGo. It is the largest aviation deal in history, and it has been done on our watch. We are providing the certainty that businesses need in order to go out and confidently secure such contracts. A lot of the jobs will be in the UK, but I will take away what my hon. Friend said, because we want to be able to show precisely the level of investment in the UK and the number of jobs that are created by this deal.

[Mr Speaker]

Order. I remind Ministers that they should be speaking to me, not to the Back Benches.

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[Tim Farron (Westmorland and Lonsdale) (LD)]

How does it help UK Steel to decarbonise, or help the UK to reclaim its position of global leadership in reducing climate emissions, to support the opening of a sure-to-be-doomed new coalmine in west Cumbria?

[Ms Ghani]

I do not think the hon. Gentleman has ever had a positive story to tell about his region, let alone his constituency. We have a positive story on steel, and we have the same challenges as most countries in trying to deal with decarbonisation. We have issues around energy costs that we have been providing all our advanced manufacturing sectors with, and we want to ensure that we diversify our access to different forms of energy.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

Going back to Brexit, can the Secretary of State name one Scottish sheep farmer who is happy with the Brexit deal, or any seafood producers and exporters that she spoke to who are happy with Brexit? Can she name any Scottish farming sectors that are happy with Brexit?

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[Mr Speaker]

Order. I do not know whether the Minister wants to respond.

[Ms Ghani]

indicated dissent.

[Mr Speaker]

If not, there was nothing disorderly, and I cannot continue the debate. What I can say is that the hon. Member has certainly put his view on the record.