Oral Answers to Questions
Nusrat Ghani Excerpts(1 month, 3 weeks ago)
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Feryal Clark (Enfield North) (Lab)
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.
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.
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)
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)
Graham Stringer (Blackley and Broughton) (Lab)
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.
Sir John Whittingdale (Maldon) (Con)
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.
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(3 months ago)
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George Freeman (Mid Norfolk) (Con)
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)
Nicola Richards (West Bromwich East) (Con)
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—
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)
Stephen Kinnock (Aberavon) (Lab)
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.
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.
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)
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)
Kenny MacAskill (East Lothian) (Alba)
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)
Oral Answers to Questions
Nusrat Ghani Excerpts(4 months, 4 weeks ago)
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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)
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)
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(7 months, 2 weeks ago)
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Holly Mumby-Croft (Scunthorpe) (Con)
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)
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)
Andrew Jones (Harrogate and Knaresborough) (Con)
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.
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?
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)
Patrick Grady (Glasgow North) (SNP)
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.
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)
Jeff Smith (Manchester, Withington) (Lab)
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)
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)
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(10 months ago)
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Stephen Kinnock (Aberavon) (Lab)
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.
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)
Neale Hanvey (Kirkcaldy and Cowdenbeath) (Alba)
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.
Luke Hall (Thornbury and Yate) (Con)
Jessica Morden (Newport East) (Lab)
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)
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)
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)
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.
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?
Mr Speaker
Order. I do not know whether the Minister wants to respond.
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.
Oral Answers to Questions
Nusrat Ghani Excerpts(11 months, 2 weeks ago)
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Andrew Selous (South West Bedfordshire) (Con)
The Minister of State, Department for Business and Trade (Ms Nusrat Ghani)
As part of the UK’s strategy to secure a resilient supply of critical minerals, we are accelerating domestic capabilities along the whole critical minerals value chain, from mining to manufacturing. Our support for businesses such as Cornish Lithium and Green Lithium shows our support for these industries. Just in March, we published a refreshed delivery approach to the critical minerals strategy, including the establishment of a new industry taskforce on critical minerals that will investigate the critical mineral dependencies and vulnerabilities faced by UK industry and help it to mitigate risks.
Andrew Selous
I thank the Minister for that answer. She will know well that demand for graphite, lithium and cobalt is expected to quadruple by the 2040s. With supply currently dominated by China, what can the Government do to extract rapidly the deposits identified in all four nations of the United Kingdom so that we can gain a climate action dividend and level up the United Kingdom?
Ms Ghani
My hon. Friend is right. One reason why I came back into government was to ensure that we were not reliant on one country, China. We need more lithium, cobalt and graphite, as does everybody else, to make batteries for electric cars, and we need silicon and tin for electronics. We welcome the Critical Minerals Intelligence Centre’s report, “Potential for Critical Raw Material Prospectivity in the UK”, which we commissioned. We are working with the British Geological Survey on next steps. Through the strategy, we are funding projects such as Cornish Lithium and Green Lithium, which build innovative, resilient value chains here in the UK.
Clive Efford (Eltham) (Lab)
Many are clamouring for the rights for deep-sea mining to extract critical minerals, but we know little about the seabed and the knock-on effects there could be on the environment and ecology of the deep sea and the wider oceans. Will the Minister continue to support a moratorium on deep-sea mining through the International Seabed Authority until we have a better understanding of those environmental impacts?
Ms Ghani
There is no deep-sea mining currently happening in areas beyond national jurisdictions. The UK has committed not to sponsor or support the issue of any exploitation licences for deep-sea mining projects unless and until there is significant scientific evidence about the potential impact on deep-sea ecosystems.
James Wild (North West Norfolk) (Con)
Geraint Davies (Swansea West) (Lab/Co-op)
The Minister of State, Department for Business and Trade (Ms Nusrat Ghani)
It is clear that we live in dangerous times. Autocracies are behaving in a way that many of us have not seen in our lifetimes. The UK stands at a crossroads of this geopolitical stand-off between international rules-based systems as we know them and the system that autocratic leaders would like them to become. Trade and investment are at the very heart of that crossroads. The UK has long supported the promotion of our values globally, which will continue as an independent trading nation. By growing our trading relationships, the UK can increase its influence, which helps us to open conversations bilaterally with partners on a range of issues.
Geraint Davies
The Minister knows that I am trade rapporteur to the Council of Europe. My report, which has been agreed by 46 member states, calls for due diligence on the border to protect supply chains from human rights abuse and deforestation, and more clout for the environment vis-à-vis the interests of energy companies, in particular in dispute mechanisms. Will she meet me about taking forward those proposals so that trade agreements green rather than blacken our planet and uphold rather than diminish our fundamental rights?
Ms Ghani
I have read the hon. Member’s report, because he sent it to me. I have lost many hours of my life, but I have read it and I enjoyed it. It would be remiss of me not to thank my hon. Friend the Member for Henley (John Howell), the Conservative leader of the UK parliamentary delegation to the Council of Europe, for all his work. There is lots of really good stuff. [Interruption.] He leads the delegation, but the hon. Member wrote the report, which I have read. There are some good points, especially on China’s emissions, which are greater than USA and the EU combined.
The UK works with allies and partners through multilateral systems to promote our values globally. Multilateral forums include the UN, the World Trade Organisation, the Organisation for Security and Co-operation in Europe and the Council of Europe. I will sit down and work through the hon. Member’s report with him.
Dame Nia Griffith (Llanelli) (Lab)
I congratulate my hon. Friend the Member for Swansea West (Geraint Davies) on his work on this report, which includes calling out the energy charter treaty used by fossil fuel companies to sue Governments for introducing climate policies. It is now nearly a year since the Minister’s colleague, the right hon. Member for Chelsea and Fulham (Greg Hands), said:
“The UK cannot support an outdated treaty which holds back investment in clean energy and puts British taxpayers at increased risk from costly legal challenges”.
Can the Minister tell us when the Government will follow the example of other major European countries and commit to withdrawing from the energy charter treaty?
Ms Ghani
The energy charter treaty, which is under review, falls under the responsibilities of the Department for Energy Security and Net Zero, which has been formed from half of my previous Department. In their negotiations to modernise the ECT, the former Departments for International Trade and for Business, Energy and Industrial Strategy worked in close collaboration and DIT led on the investment provisions, so there is no doubt that the hon. Lady’s question would be better focused at the other Department.
Tim Loughton (East Worthing and Shoreham) (Con)
Dave Doogan (Angus) (SNP)
The Minister of State, Department for Business and Trade (Ms Nusrat Ghani)
The UK’s total exports have now recovered to pre-pandemic levels, measured against 2018. In 2022, UK exports were £815 billion, up by 21% in current prices compared with 2018, and up by 0.5% once adjusted for inflation. The latest data shows Scotland is the third highest exporting nation or region in both goods and services. In 2022 Scottish exports of goods totalled £35.7 billion, up by 23.5% in current prices from the previous year.
Dave Doogan
I know just what a favourable position Scotland is in, in terms of its trade exports. We do very well, even though we are held back by the constraints of this Union. The Office for National Statistics figures show that UK exports are lagging behind other G7 countries. Before the Minister tells us that this is because of the war in Ukraine and covid, let me point out that all our G7 partners have faced those headwinds as well, but only the United Kingdom, sadly including Scotland, faces the English Brexit chaos that is damaging our trade. What discussions has she had to apologise to the Scottish Government and to Scottish businesses for the drag she places on Scottish trade?
Ms Ghani
The hon. Gentleman started so positively. If he is against Brexit, then he is against every trade deal, and he is against the most integrated single market in the world, which is Scotland and England. All he wants to do is to split, split, split. I have already told him the good news that the total amount of exports in pounds is up. There is also fantastic news about whisky—surely that can raise a smile from the hon. Gentleman—and about services: in 2022, UK services were up by 24% in current prices, and by 4% when the figure was adjusted for inflation. I know it is difficult for the hon. Gentleman to accept good news from the Government Benches, but it is good for his constituents, so he should welcome it.
Nick Thomas-Symonds (Torfaen) (Lab)
I am afraid the independent Office for Budget Responsibility does not share the Minister’s optimism about exports. The analysis that accompanied the spring Budget forecast that the UK would face a 6.6% fall in exports this year. That is equivalent to a fall of over £51 billion, and would represent an average hit of over £186,000 to the more than 273,000 UK exporters. It will have a devastating impact, and is it any wonder that the UK is predicted to have the worst growth in the G7? Surely, if Ministers recognised the scale of these projected losses, they would be taking urgent steps to support our exporters now.
Ms Ghani
There will always be data, forecasts, and the evaluation and re-evaluation of those data and forecasts. It is important for the House to know about all the good news that was missing from the right hon. Gentleman’s question. According to a PwC report, the UK will continue to be the fastest growing G7 economy until 2050. That is indeed good news. [Interruption.] It is a forecast. The right hon. Gentleman himself mentioned an OBR forecast.
Exports are up, including business services exports, and we are on track to reach our target of £1 trillion by 2030—and before the right hon. Gentleman jumps to his feet, let me add that 2030 is several years away, and I look forward to being on the Government Benches on this side of the House telling him, on that side of the House, how close we are to that target.
Tommy Sheppard (Edinburgh East) (SNP)
Carol Monaghan (Glasgow North West) (SNP)
UK semiconductor businesses have been crying out for the semiconductor strategy. I have asked a number of questions about this, and two weeks ago the Minister for Science, Research and Innovation told me it would be published in “a matter of days”. The Secretary of State loves a doughty champion; can she be a doughty champion for the semiconductor industry and speak to colleagues in the Department for Science, Innovation and Technology to get the strategy published?
The Minister of State, Department for Business and Trade (Ms Nusrat Ghani)
I do not need any excuse to chase up the Department on the semiconductor strategy, and I will do so. As the hon. Lady knows, it does not sit within our remit, but with DSIT. In this Department, we are making sure that the critical minerals needed to put semiconductors together are in the supply chain and that we can get hold of them, but I am more than happy to chase up that strategy.
Margaret Ferrier (Rutherglen and Hamilton West) (Ind)
Large global car makers have warned that the UK’s transition to electric vehicles will be impeded if the UK Government and the EU do not delay the stricter rules of origin, which could add tariffs on car exports. Will Ministers negotiate on the issue to safeguard the UK’s automotive industry?
Oral Answers to Questions
Nusrat Ghani Excerpts(1 year, 1 month ago)
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Mrs Sheryll Murray (South East Cornwall) (Con)
The Minister of State, Department for Business and Trade (Ms Nusrat Ghani)
I wish everybody a happy Ramadan on our first day of fasting.
We are moving towards a world powered by critical minerals. We need lithium, cobalt and graphite to make batteries for electric cars, and we need silicon and tin for our electronics. I am pleased that we recently published our “Critical Minerals Refresh.” This strategy will accelerate the growth of UK capabilities, collaborate with international partners and enhance international markets.
Mrs Murray
Cornwall is known for its mining—some people even define a mine as a hole in the ground with a Cornishman at the bottom. What efforts is the Department making to ensure that we make the most of our home-grown mineral security?
Ms Ghani
I am so grateful to my hon. Friend for reminding the House of Cornwall’s mining heritage and the world-renowned Camborne School of Mines. This is why we are backing Cornish lithium and geothermal engineering, through the Getting Building fund and the automotive transformation fund, which are collaborating to build a zero-carbon lithium extraction plant at an existing site in Cornwall. I very much look forward to visiting it in the near future.
Darren Jones (Bristol North West) (Lab)
The Minister knows that the steel industry is an important customer for critical minerals in this country, so will she confirm for the House the status of the Steel Council in her Department and whether it is actively meeting?
Ms Ghani
I served with the hon. Gentleman on the Business, Energy and Industrial Strategy Committee for many years. He will be very familiar with the fact that I meet the steel sector and the unions, and I have all the regular meetings, including those with the all-party parliamentary group for steel and metal related industries, which is chaired by the hon. Member for Aberavon (Stephen Kinnock). The meetings are most definitely taking place.
Nick Thomas-Symonds (Torfaen) (Lab)
I join the Minister in wishing the whole House a happy Ramadan.
It is great finally to see the critical minerals strategy, but, as the Minister indicated in her answer, long-term, durable access to minerals is also dependent on our wider strategic trade policy. The Government have failed in their objective of ensuring that 80% of our trade is conducted under free trade agreements. In addition, the Office for Budget Responsibility says that our exports are projected to fall by 6.6% next year. How does she propose to integrate her critical minerals strategy with our wider trade policy? How much will that 6.6% fall in exports cost the UK economy in cash terms?
Ms Ghani
I only recently published the critical minerals refresh and I was expecting some sort of positive response, given how it is integrated internationally; it deals with the threats of China and works with the Inflation Reduction Act 2022 in the United States. But of course the Opposition use any reason to dampen a positive step forward for all of our manufacturing sector across the country. UK exports to Europe amounted to £386.9 billion in the four quarters to the end of 2022, which was an increase of 25%—I think that is an increase, not a decrease.
Mick Whitley (Birkenhead) (Lab)
The Minister of State, Department for Business and Trade (Ms Nusrat Ghani)
The Prime Minister has made it clear that growing the economy and creating better-paid jobs is one of our top priorities, and the Government are working with industry across the UK to achieve that. We have set out clear plans for prioritising technology sectors, advanced manufacturing, financial services and creative industries, and this includes our investor road maps. In particular, the Chancellor has announced 12 investment zones across the UK, which could benefit from £80 million of interventions over the next five years.
Mary Glindon
The Government have not published an industrial strategy since 2017 and, as a result, the UK now has the lowest level of business investment in the G7. So what is the Minister’s plan to encourage business investment in the UK, given that the Government have not even published an industrial strategy?
Ms Ghani
I think the hon. Lady has misunderstood exactly what we are doing. We have industrial strategies, be it for the automotive sector, the aviation sector, the maritime sector, or science and tech—that one was published just yesterday. This is not just about publishing strategies; it is also about delivering, which is what we are cracking on with and doing. As for UK investment, we are the leading country for start-up capital outside the United States, and just a few weeks ago we attracted £20 billion into tech—this is twice as much as France and Germany.
Mick Whitley
While the EU and the US are investing billions in accelerating their transition to net zero, including through the Inflation Reduction Act, the lack of a robust green industrial strategy in Britain is leaving us stranded at the back of the pack. Does the Minister share my frustration that the Chancellor’s Budget did so little to set out a convincing strategy for green growth? Do the Government intend to make the public wait for Labour to win the next general election before a world-leading green industrial strategy that drives private investment in green industries and establishes the UK as a clean energy superpower is brought before this House?
Ms Ghani
I am sorry to dampen the hon. Gentleman’s ambitions about winning the next general election, but we do indeed have a strategy to deal with decarbonising our economy. We are supporting research and development to help decrease our reliance on gas and electricity and deal with long-term energy security: we have £380 million for the offshore wind sector, £385 million for nuclear R&D, and £120 million for future nuclear enabling. We have a green industrial strategy and we are keen to ensure that we deliver it right across the country, for all of our communities.
Bill Esterson (Sefton Central) (Lab)
People in Scunthorpe, Rotherham and Port Talbot know how important steel is for their communities. We Labour Members understand how important it is, for communities and for the green transition. The UK is the only G20 country in which steel production is falling, but when asked about the survival of this strategically important sector, the Business Secretary said:
“Nothing is ever a given.”
Is that because the British steel industry is not safe in her hands?
Ms Ghani
I do not know where the hon. Member got that quote from, but the British steel industry is very safe in our hands. Let me explain why. There has been over £800 million of support for energy costs, and over £1.5 billion to support competitive funds to ensure that the sector can decarbonise. We have done a huge amount of work with our steel sector. Colleagues from across the House will agree that in every meeting, whether it is with the unions or the sector, we are on the side of the steel sector and steelworkers, including when challenging commercial decisions are taken.
Marion Fellows (Motherwell and Wishaw) (SNP)
David Duguid (Banff and Buchan) (Con)
The Minister of State, Department for Business and Trade (Ms Nusrat Ghani)
There has been support to the value of about £18 billion for businesses to help them with their energy bills, and we are determined to secure the future for our energy-intensive industries and to protect jobs. To support those most at risk of carbon leakage, the Government have announced the British industry supercharger, to support those most exposed to the cost of electricity. Those measures will bring the energy costs of the UK’s energy-intensive industries in line with those charged across the world’s major economies.
Scott Benton
Many of the tourism and leisure businesses in Blackpool are energy-intensive, not least the world-famous illuminations and pleasure beach, which now pay hundreds of thousands of pounds more for their energy than previously. Will the Minister meet me to discuss the specific challenges around energy consumption facing the tourism industry, ahead of a busy summer season?
Ms Ghani
Once again, my hon. Friend is a stout campaigner for his constituency, and for the tourism and leisure businesses in Blackpool. He will know that the decision about which businesses fall within the EII scheme is for the Treasury; I am not sure whether the £63 million for leisure centres falls within that catchment or not, so of course, I will meet with my hon. Friend to make sure he has the absolute clarity that he needs. The EII relief scheme is in place to support the most energy-intensive industries, but let me sit down with him and work out whether that industry falls within that category.
David Duguid
The Government’s support for the energy costs of businesses in my constituency has been most welcome. As the Minister will know, fishing is a key industry there, so I am particularly pleased that the processing and preserving of fish, crustaceans and molluscs is included in the energy and trade intensive industries scheme. Representatives of the Scotch Whisky Association tell me that they are surprised not to be included in that scheme—especially as manufacturers of wine, cider and beer are—despite falling within the top 20% of sectors by energy intensity and the top 40% by trade intensity. Will the Minister meet me and representatives of that industry to discuss this apparent anomaly?
Ms Ghani
My hon. Friend raises the fishing industry. There are two Back-Bench colleagues present who are huge champions of that industry—I dare not say anything further—and I know that my hon. Friend is a huge promoter of Scottish products, including Scottish whisky. I look forward to a tour post Ramadan at some point soon.
The decision about who falls within the EII scheme was taken by the Treasury. I have been reading about the work that my hon. Friend has been doing on behalf of the sector, and I counter-propose a meeting that involves Treasury officials and Ministers. If my hon. Friend is happy with that, I am more than happy to set it up.
Stephen Kinnock (Aberavon) (Lab)
I am honoured to be the chair of the all-party parliamentary group for steel and metal related industries, and I thank the Secretary of State to agreeing to come and meet us—I am very much looking forward to that discussion. However, may I raise again the issue of her Sky interview in which she said, or certainly strongly implied, that it is not a given that we should have a steel industry in this country? Given the rise of authoritarian regimes around the world, the massive role that steel plays in providing good jobs that people can raise a family on and the vital role it plays in the transition to a decarbonised economy, may I invite the Secretary of State to come to the Dispatch Box and clarify her position—that steel is, in fact, a given in the United Kingdom?
Ms Ghani
Unfortunately, I have to come to the Dispatch Box—that is just the way it works—so I disappoint the hon. Member by not being the Secretary of State. However, he knows that steel is absolutely key to our sovereignty and security and for the resilience of all our sectors. The Secretary of State has mentioned repeatedly that the quotes that are being repeated in the Chamber are a misrepresentation. The commitment to the sector continues. It was in place for years: it is why we had £800 million of support for the energy sector, and it is why we have a £1.5 billion competitive fund to help the sector decarbonise.
David Linden (Glasgow East) (SNP)
Small businesses such as coffee shops and cafés in our high streets are the lifeblood of a local economy—one example would be Jeanie’s Coffee Shop in Baillieston. Running a kitchen all day is an incredibly intensive process for energy, and John Devaney was telling me last week how that business’s energy bills have gone up. As the Minister is being so generous with other meetings, would she be willing to meet me to look at how we can support businesses such as Jeanie’s in Baillieston to ensure that they get through the cost of living crisis?
Ms Ghani
I will be full of meetings, but I defer to the Minister with responsibility for small businesses, who is more than happy to have that meeting. We have provided billions of pounds of support for businesses to deal with their energy costs, and we have the new supercharger in place. We lobby the Treasury long and hard, and we are more than happy to represent businesses small and large.
Sir Desmond Swayne (New Forest West) (Con)
The Minister of State, Department for Business and Trade (Ms Nusrat Ghani)
The UK is the most internationally connected financial centre in the world. We continue to attract some of the most innovative and largest companies. More than £17 billion of capital was raised for firms in the UK—a 15-year high—with over 120 deals completed. The UK is taking forward ambitious reforms to rules governing its capital markets, building on our continued success as Europe’s leading—globally, the second largest—hub for investment.
Sir Desmond Swayne
Is Government debt crowding out productive investment?
Ms Ghani
My right hon. Friend is always so succinct in his questions, and there is often a huge amount of sense behind it. I fundamentally agree that we need to collaborate with business and industry. [Interruption.] Forgive me, Mr Speaker. The response I want to give to my right hon. Friend’s very good question is that, as he will be pleased to know, there is the Lord Hill listing review and the Sir Douglas Flint review, and in particular the Edinburgh reforms, which will be considering competitiveness and will, I think, provide some sort of answer to his question. It would be remiss of me—because I know that he is particularly interested in this—not to mention that it is 50 years since women were first admitted to the floor of the New York stock exchange after 170 years of just men.
Dr Lisa Cameron (East Kilbride, Strathaven and Lesmahagow) (SNP)
Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)
The automotive industry is a jewel in the crown of British manufacturing, but to keep that jewel we need to be building batteries for electric vehicles in the UK. So far we have one gigafactory up and running, while Germany already has 10 times our capacity. Alarm bells are ringing across the sector, and we recently had disappointing news with Ford announcing job cuts in Essex. The Faraday Institution estimates that the UK needs 10 battery factories by 2040 to retain our car industry. Does the Secretary of State agree with that assessment? If she does, how and when will she publish a clear plan for how the Government intend to hit that target?
The Minister of State, Department for Business and Trade (Ms Nusrat Ghani)
We have a strategy in place to support the automotive industry, with £1.3 billion of innovative projects, including the Faraday factory challenge —[Interruption.] I have a response to the question. The hon. Gentleman will be pleased to know that we have investment in place, so let me continue. With a budget of £544 million, the Driving the Electric Revolution scheme includes nearly £80 million of Government investment through the Innovate UK programme. I suggest that the Opposition Front Benchers flick through my “Critical Minerals Refresh” document, because there is a fantastic page on UK battery supply chains—not just the automotive transformation fund but the Envision AESC announcement, which is worth £1 billion for the north-east electric vehicle hub. Perhaps they will read it before the next Question Time, so that they have a tricker question for us to deal with.
Mrs Sheryll Murray (South East Cornwall) (Con)
Oral Answers to Questions
Nusrat Ghani Excerpts(1 year, 2 months ago)
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Mark Eastwood (Dewsbury) (Con)
The Minister of State, Department for Business and Trade (Ms Nusrat Ghani)
UK exports have grown by 24% year on year, and our landmark 12-point export strategy will challenge Government and the private sector to reach £1 trillion-worth of exports a year. As part of that strategy, we created the export support service, which has brought together helplines and services across Government to build a one-stop shop for UK exporters facing challenges in exporting to the EU. We are also delivering for businesses through our dedicated team of international trade advisers, reinforced by Department for International Trade events and programmes such as the UK Export Academy.
Mark Eastwood
Last month, I was delighted to co-host my first successful export academy at Kirklees College in association with the Department for International Trade and UK Export Finance. Will the Minister outline how local DIT officers and UKEF can assist SMEs to export their goods and services across the world?
Ms Ghani
Mr Speaker, may I first thank you for your leadership in hosting President Zelensky yesterday? It really was a humbling moment for us all. My hon. Friend the Member for Dewsbury (Mark Eastwood), with his can-do attitude, is constantly championing everybody in Dewsbury. As he may know, UK Export Finance offers a range of trade, finance and insurance products to help small and medium-sized businesses fulfil export contracts. It works with more than 100 private sector partners, including all major UK banks. UKEF support is underpinned by the innovative general export facility, a product designed to give SME exporters more flexibility when accessing trade finance. It unlocked almost £250 million of working capital loans in the last financial year. Local trade has obviously helped strengthen the “Made in the UK” branding, which provides export support to SMEs across the country. Face-to-face support for exporters in England is delivered via a network of around 200 international trade advisers. There is so much to say, but I think I should stop there.
Matt Western (Warwick and Leamington) (Lab)
SMEs in my area have been doing a huge amount of business internationally. One such company has been exporting 80% of its business for decades. In recent years, it has been challenged by China, and has had intellectual property issues; its IP has been stolen. I am afraid to say that it felt unsupported by the Department for International Trade. It faces an issue in Germany. Will the Minister meet me to help this business with the challenge that it faces in those countries?
Ms Ghani
The beauty of having former business Ministers in the new Department is that we are across most of these issues, including the issue of IP. I am more than happy to sit down with the hon. Gentleman, or to make sure that the right Minister does, because we need to protect our IP.
Mrs Sheryll Murray (South East Cornwall) (Con)
Robbie Moore (Keighley) (Con)
The Minister of State, Department for Business and Trade (Ms Nusrat Ghani)
The UK’s total inward investment stock is the second highest in the world, having recently passed £2 trillion. As the Secretary of State outlined, we want to make the UK the undisputed top investment destination in Europe, attracting high-impact, high-value investment into our strategically important sectors which will make a real difference to the UK economy. We are facilitating both Government-to-Government and industry investment. The UK-UAE sovereign investment partnership will bring £10 billion to key UK sectors. Likewise, the Moderna partnership will support our research and clinical trials infrastructure, building a state-of-the-art vaccine manufacturing centre and creating over 150 highly skilled jobs in the UK. Compared to 2020-21, last year —2021-22—the estimated economic impact of foreign direct investment projects supported by the Department for International Trade increased by 82% and the number of new jobs by 53%.
Mr Speaker
Minister, why are the answers so long? We have not heard the rest of the questions yet. I have a big list.
Antony Higginbotham
Burnley and Padiham are already home to some brilliant international businesses, such as Safran Nacelles, Paradigm Precision and Futaba Manufacturing among many, many more. Together, they support thousands of local jobs. To make our area even better, we want to attract more investment, helping businesses already here to grow and attracting new ones in. Will the Minister agree to meet me to talk through how we can make Burnley the best place to invest in Britain?
Ms Ghani
I think my hon. Friend, in promoting Burnley so much, has already made it the best place to be doing business. Burnley has a global reputation for manufacturing excellence. The companies that he references demonstrate the attractiveness of his constituency to investors across the globe, and the free trade agreements make it easier for investors to bring capital and create jobs in Burnley. And, of course, we would be delighted to meet him.
Daniel Zeichner
The Minister references the life sciences sector, which is so important for future prosperity, particularly in and around Cambridge. We are in danger of falling behind in the race for international investment, as evidenced by the fact that since 2018 we have fallen from fourth to 10th in hosting late-phase clinical trials. What are the Government doing to address that issue?
Ms Ghani
On clinical trials specifically, when I was life science Minister we commissioned a review of clinical trials—we knew that was a blockage—but I do not think the data he presents reflects the £1 billion Moderna deal we have just secured, including the deal with biotech. The fact that we have life science missions will enable us to attract more attention and work to the ecosystems we have here in the UK, including in the hon. Gentleman’s constituency. I am more than happy to work with him, because life science is one of our key exports of expertise.
Robbie Moore
I recently had the honour of welcoming the Prime Minister to Keighley, where he had the opportunity to visit Teconnex, a global leader in clamp technology that also provides battery storage to help commercial and industrial facilities to become more energy-independent. What steps is my hon. Friend taking to ensure that with businesses such as Teconnex in my constituency and other world-leading businesses right here in the UK, we can be seen as a more attractive place for foreign investment?
Ms Ghani
My hon. Friend proudly represents Teconnex as a firm in his constituency. The Department is keen to support all businesses that seek to invest or expand in the UK, particularly those that can help to spread jobs and opportunities across the UK and help us to deliver net zero. The Department is working across Government; we have previous Business Ministers here, and we are very close to the automotive sector and the supply chain. The new Department will ensure that there is a single, coherent voice for business inside Government to help my hon. Friend to represent business in his constituency.
Andrew Gwynne (Denton and Reddish) (Lab)
The investment in Moderna will not be worth anything if we do not have the precision temperature-calibrated machinery to help with that development. SK Wiring in Denton is the UK’s only manufacturer of that high-tech wiring. It stayed open during the pandemic, even though it lost 70% of its industrial trade, to keep the covid vaccine going and keep the NHS going. It is now at risk of closure. Can we have an urgent meeting so that we can keep this critical national infrastructure developed in Britain?
Ms Ghani
Within the life sciences missions, manufacturing is a key point. I was at the life sciences conference in San Francisco when we finalised the deal with Moderna. Of course this is not about playing politics; I am more than happy to meet the firm in the hon. Gentleman’s constituency, because vaccine manufacturing will be a key growth area for us.
Wera Hobhouse (Bath) (LD)
Mr Philip Hollobone (Kettering) (Con)
The Minister of State, Department for Business and Trade (Ms Nusrat Ghani)
More global multinationals have set up subsidiaries in the UK than in any country other than the United States. This is the best place in Europe in which to raise capital. Between April 2016 and the end of March 2022, the Department assisted more than 8,700 foreign direct investment projects in the UK, which have created about 348,000 new jobs across the United Kingdom.
Mr Hollobone
The UK has had a great track record of attracting foreign direct investment since we voted to leave the European Union. The figures given by the Minister will include the £200 million investment by Ball Corporation in the United States in the UK’s largest and Europe’s most advanced can manufacturing plant, in Burton Latimer. How does the UK’s record of attracting foreign direct investment compare with those of our major EU competitors?
Ms Ghani
My hon. Friend has given a fantastic example of the opportunities that have been created. The UK is a highly attractive destination for FDI, and has been among the top recipients in Europe over the last decade. According to the Financial Times and the United Nations Conference on Trade and Development, the UK has the highest market share of greenfield FDI capital expenditure in Europe, at 20%—almost double that of Spain, which is in second place with 12%. It also has the highest levels of Food and Drug Administration stock in Europe, second only to the United States globally. It is remarkable how far we have progressed in such a short time.
Kerry McCarthy (Bristol East) (Lab)
The Biden Administration’s Inflation Reduction Act 2022 makes investing in the US very attractive, particularly for innovative green technology. How are we going to compete?
Ms Ghani
In my previous role I was dealing with the impacts of the Inflation Reduction Act, and I hope I will continue to do so, because so many business representatives whom I have met have raised it as a concern. The hon. Lady has referred to green technology. A great deal of work has already been done to promote all our expertise, especially in relation to hydrogen, but there is a huge amount of investment in the UK’s green technology sector and technology in general, and we are also a leading light when it comes to lithium. I was recently in Cape Town with our Green Lithium firm, which wanted to negotiate on how it could do more work in the United States. That is exactly what we are here to do—to facilitate collaboration of that kind.
Giles Watling (Clacton) (Con)
Rachel Hopkins (Luton South) (Lab)
The Minister of State, Department for Business and Trade (Ms Nusrat Ghani)
The Department is working across Whitehall and with industry to secure export-led investment as the sector makes the transition to zero-emission vehicles, including new electric vehicle models, along with battery gigafactories and the electric vehicle supply chain. We have a dedicated export support system throughout the UK in the shape of our international trade advisers, ensuring that the automotive industry is the country’s biggest single exporter of goods, exporting nearly 80% of vehicle production—about 6% of the UK’s total exported goods.
Rachel Hopkins
If we are to continue to drive British automotive exports, it is critical that automotive businesses such as Vauxhall in Luton can make the transition to manufacturing electric vehicles effectively. The rules of origin from 2024 onwards highlight the need to attract the wider electrified supply chain to the UK as soon as possible. How is the Minister working with the automotive sector to expand our domestic electric vehicle supply chain—especially in respect of batteries—to avoid any future tariffs when rules of origin come into effect?
Ms Ghani
The hon. Lady will hopefully find some comfort in the fact that I have many meetings with the Society of Motor Manufacturers and Traders and have met the automotive sector multiple times to deal with this issue. We are very much aware of the rules-of-origin issue, which is why we are investing so much in batteries. In particular, the Faraday battery challenge is a £541 million project to help us to develop new battery technologies. I have mentioned already that I was in Cape Town to deal with the diversification of access to critical minerals in supply chains to ensure that we can process them and manufacture here.
Mr Richard Bacon (South Norfolk) (Con)
Would the Minister like to congratulate Group Lotus in my constituency, which exports more than 70% of its car production? Would she like to take the opportunity to come to Hethel to see the new Lotus Evija supercar, which can do nought to 180 mph in nine seconds?
Ms Ghani
I am not sure that I can speak as far as that car goes, but I am more than happy to come to Hethel to visit Group Lotus. The amount of progress that has been made by experts, academics and scientists when it comes not only to zero emission vehicles but to speed is remarkable.
Gareth Bacon (Orpington) (Con)
The Minister of State, Department for Business and Trade (Ms Nusrat Ghani)
My hon. Friend once again promotes a fantastic business in his constituency. The UK tech and digital sectors are key for us and are our greatest success stories, with a total valuation in excess of £1 trillion in 2022. The UK tech sector retains the No. 1 spot in Europe and is No. 3 in the world, as the sector’s resilience brings continued growth. On tech within life sciences, we are one of the top countries in the world to be seen collaborating and investing with.
Nick Thomas-Symonds (Torfaen) (Lab)
I thank you, Mr Speaker, and all House staff for the work on President Zelensky’s visit. I also welcome the Ministers to their rearranged places, but I do not think it is a surprise that the Prime Minister has decided to shuffle the deckchairs on this particular ship. We had a Department for Business, Energy and Industrial Strategy with no industrial strategy and we had a Department for International Trade delivering either no deals or bad deals. In an assessment of the Conservatives’ 13 years in office, can the Minister inform the House when they expect to hit the target of £1 trillion- worth of exports, which David Cameron promised by 2020?
Ms Ghani
What a blow to one’s ego to know that one’s Department is such a disappointment, but we are working so closely with our colleagues to drive investment, represent businesses and focus on trade that it makes absolute sense for us to be here. I know that I am new to this business, but I thought that the £1-trillion target was for 2030. If that is the case, we have seven years to go, so I suggest that the right hon. Gentleman be a little patient. In seven years’ time, he will be there, on the Opposition Benches, and we will be here, on the Government Benches, ready to update him.
Nick Thomas-Symonds
David Cameron promised it by 2020; the last Prime Minister but one promised it by 2030; and, as the Department for International Trade set out in a written response, the Office for Budget Responsibility said that the target will not be met until 2035—15 years late. Is that any surprise? The Government have delivered no trade deal with the US, no trade deal with India, and an ongoing impasse on the Northern Ireland protocol, and the current Prime Minister said that the deals that they have delivered, such as the Australia deal, were “one sided”. The truth is that they can swap around Ministers and departmental names, but at the heart of it is a failing Government who are out of ideas.
Ms Ghani
I completely understand why the right hon. Member may be confused. We on the Conservative Benches represent business, and I know that the Labour party was stopping people from doing their business by backing the strikes. We on this side of the House represent trade, but I cannot think of a single trade deal that he was proud to support. I can understand the level of complete confusion, but I do not understand some of the figures that he cites.
There is such fantastic news out there. We have talked about the fact that we have attracted £20 billion in tech. Why would the right hon. Member not be proud of that? If he wants to talk about reports, just last night I read the PricewaterhouseCoopers report, which said that the UK would be the fastest growing G7 economy by 2050, and will outgrow Germany, France and Italy. That is good news. I thought Thursday mornings were about promoting Great Britain—
Mr Speaker
And topical questions are meant to be short and brief. I call Philip Hollobone to set the example.
Mark Eastwood (Dewsbury) (Con)
What action does my hon. Friend intend to take to reduce tariff barriers with developing countries, such as Pakistan?
Ms Ghani
I believe that my hon. Friend is the trade envoy to Pakistan, and I look forward to collaborating with him. Pakistan already has a preferential trading relationship with the UK through our generalised scheme of preferences. This will be replaced by the developing countries trading scheme, and Pakistan will continue to benefit from duty-free exports to the UK and the removal of tariffs on 156 products. I look forward to working with my hon. Friend.
Alison Thewliss (Glasgow Central) (SNP)
Edusport Academy, based in my constituency, was set up in 2011 and had a thriving business prior to Brexit. It brings young sports people over to Scotland, combining sport and English language training. Since Brexit, Edusport has struggled to make the business work due to restrictions put in place by the Home Office. Will the Minister meet me and Edusport to discuss how we can make this business work and continue to thrive?
Jim Shannon (Strangford) (DUP)
The fairness of imports and exports in Northern Ireland is hindered by the impacts of the Northern Ireland protocol. What steps are being taken to ensure that the Northern Ireland Protocol Bill, which is sitting in the House of Lords like the Mary Celeste, as others have said, passes smoothly and efficiently to reinforce trading fairness for businesses in Northern Ireland?
Ms Ghani
Northern Ireland plays a full part in all our trading agreements, and I believe that a Northern Irish machinery exporter is involved in the Australia deal. My hon. Friend and I have spoken quite a bit about the Northern Ireland protocol in respect of the Bill I took through recently, and he will be aware of the sensitive discussions that have taken place with the Administration to ensure everything can be as smooth as possible. If needed, I will always be available to meet my hon. Friend.
Mr Speaker
I will have to suspend the House until 10.30. I am sorry nobody else wanted to come in.