Oral Answers to Questions

Peter Kyle Excerpts

Thursday 12th March 2026 Commons Chamber

[Lloyd Hatton (South Dorset) (Lab)]

11. What steps he is taking to support the creation of well-paid jobs.

[The Secretary of State for Business and Trade (Peter Kyle)]

The industrial strategy focuses on business investment and creating high-quality jobs. We back our strengths and are unblocking barriers, including through £1.2 billion of skills investment by 2028-29. This Labour Government are investing in skills, in jobs, and in creating wealth and opportunity across the United Kingdom.

[David Pinto-Duschinsky]

I thank the Secretary of State for his answer. Communities like mine in Hendon were let down by 14 years of economic instability and the lack of a strategic approach to driving growth under the Conservative party. Will the Secretary of State set out how our modern industrial strategy will help to accelerate growth in places like Hendon?

[Peter Kyle]

I absolutely will. First, Hendon has a champion in you—I mean my hon. Friend—and that counts for a lot. It also has a champion in you, Mr Speaker, as you make sure that we get through these questions so swiftly and efficiently. I can assure the House that the industrial strategy has delivered, on average, over £7,900 more in wages in the sectors that we are supporting through it. Over 50,000 jobs have been supported through investment commitments made to the industrial strategy’s eight sectors in the last quarter alone. This Government are attracting investment, spending it wisely and making sure that all communities, including Hendon, benefit from it.

[Lloyd Hatton]

It is no secret that clean energy is creating the next generation of well-paid jobs, and it is essential that South Dorset gets its fair share of them. The development of offshore wind at Portland, including the exciting Morwind and PortWind projects, would certainly help to create much-needed maritime, engineering and construction jobs for local people. With that in mind, will the Minister work with me, the Department for Energy Security and Net Zero, and the Crown Estate to support the development of offshore wind off the coast of Portland?

[Peter Kyle]

It would be a pleasure to work with my hon. Friend to unlock more investment in offshore wind in South Dorset. Dorset council and the Crown Estate have already committed up to £1 million to support a feasibility study for a £500 million clean energy port facility adjacent to Portland port that has been proposed by energy developer Morwind. Clean energy industries are expected to support 860,000 jobs across the UK by 2030, including up to 100,000 direct and indirect jobs in offshore wind. Thanks to the work that my hon. Friend is putting in, I am sure that South Dorset will benefit from this incredible and growing British industry.

[Mr Speaker]

I call the shadow Minister.

[Dame Harriett Baldwin (West Worcestershire) (Con)]

Of course, there are lots of well-paid jobs in the steel sector. In fact, the taxpayer is now subsidising every job at British Steel to the tune of £110,000. Can the Secretary of State update the House on how his negotiations are going with Jingye, and on when he will finally publish his long-awaited steel strategy?

[Peter Kyle]

I am very grateful for the hon. Lady’s question. Of course, after 14 years of the Conservatives running the steel industry, we have landed in a place where this Government are having to sort it out. I can reassure her that the negotiations with Jingye are well under way. I will update the House shortly on progress and, of course, on the strategy that I have been working very hard on, with colleagues, on behalf of the steel industry.

[Mr Speaker]

I call the Liberal Democrat spokesperson.

[Sarah Olney (Richmond Park) (LD)]

Research from the Entrepreneurs Network shows that 54% of Britain’s 100 fastest growing companies have a foreign-born founder or co-founder. International entrepreneurs play a vital role in driving innovation, investment and job creation across the UK, yet this Government are recklessly introducing unworkable visa regulations for those very people. Since the Budget in October 2024, 110,000 jobs have been lost in the hospitality sector and 74,000 in retail, and 700,000 graduates are currently unemployed. Youth unemployment has just hit 16%. What impact assessment have the Government undertaken on the impact of their proposed changes to indefinite leave to remain on job creation, and what conversations has the Minister had with the Home Secretary regarding this damaging disincentive to those looking to build their businesses and create jobs here in the UK?

[Peter Kyle]

I am afraid that the hon. Lady describes the doom-laden Lib Dem world that she inhabits, not the real world that is inhabited by entrepreneurs and businesses right across the country. The reality is that 381,000 more people are in work since the start of 2025 because of this Labour Government. She may have missed the fact that my Department, under my leadership and this team, has set up the global talent taskforce, accompanied by a global talent visa. Around the world, we are out there hunting down the best talent, attracting people to the UK and aligning this endeavour with investment, making the UK the best place to invest, to grow and to scale a business anywhere in the world.

[Rosie Wrighting (Kettering) (Lab)]

6. What steps he is taking to help start-ups and scale-ups access new markets.

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[James Asser (West Ham and Beckton) (Lab)]

14. What steps he is taking to increase trade ties with Europe.

[The Secretary of State for Business and Trade (Peter Kyle)]

UK-EU collaboration is vital for growth and security, with 46% of the UK’s total trade, after all, with the EU. In recent weeks, I have gone to Brussels and signed a new competition co-operation agreement, furthering the partnership between our two territories in the interests of businesses. I had constructive meetings with Commissioners Ribera, Mînzatu and Virkkunen.

[Tom Rutland]

After years of the Conservatives and Reform trying their best to ruin our relationship with our nearest neighbours, and damaging business exports, this Labour Government have been working hard to ensure that my constituents feel the benefit of our renewed relationship with the European Union. Will my right hon. Friend update the House on the work he is doing to ensure that businesses like Worthing’s very own musical instrument business Hobgoblin Music can benefit from the reset in relations we have had with our European neighbours?

[Peter Kyle]

I am grateful to my hon. Friend and constituency neighbour down in sunny Sussex for that question. The reset relationship with the EU has been fundamental and has delivered for businesses right across Britain, including Hobgoblin in Worthing on the sunny south coast of England. We are tackling the barriers to trade. The dialogue we have with the EU on business mobility and recognition of professional services will unlock opportunities into the future. Where working with the EU delivers for Britain, we will do so enthusiastically.

[James Asser]

I put on record my role as chair of the all-party parliamentary group for Bulgaria. The APPG recently visited Sofia, where we met businesses that are keen to build their trade relationships with this country, particularly in the energy and tech sectors. We also saw the good work being done by our embassy in partnership with the UK-Bulgarian chamber of commerce. Does the Secretary of State agree that we need to look at trading with many of the newer markets in eastern Europe, which are keen to create trade, particularly when we have active business communities from those countries in the UK that are keen to build a partnership that will benefit both our country and theirs?

[Peter Kyle]

My hon. Friend is absolutely right, and his work in this area is incredibly important. Our trade with every one of the newer EU member states has increased over the 12 months to September 2025, and I can give some examples of the kind of work we are engaged in. We are supporting Rolls-Royce, which is planning to build up to six small modular reactor units in the Czech Republic. One of the EU’s fastest growing economies in Europe is, in fact, Poland, and we won Polish Airlines’ first order of 40 Airbus aircrafts, which will benefit the British economy. We have also agreed to start trade policy dialogue with Norway, and we are negotiating a trade agreement with Switzerland to boost trade services. Non-EU countries of course play a vital role in that tapestry as well.

[Vikki Slade (Mid Dorset and North Poole) (LD)]

A sector in need of urgent attention is road haulage—moving not only goods but people across Europe for the purposes of tourism and education but also, importantly, film, TV, sport and music. My constituent Cameron works mainly in the music sector, supporting European tours and festivals. He tells me that the 90/180-day rule is leading to cancelled events and job losses, with some firms only employing dual nationals, using European firms rather than British ones or flying drivers home to swap out on longer journeys to avoid breaching the rules. Although the rules have existed since 2021, as the Secretary of State has told me, they have not been fully enforced. As part of the UK-EU reset, will he look at finding a way to help professional drivers keep the show on the road?

[Peter Kyle]

The hon. Member points to one of the areas where the Brexit deal negotiated by the Conservative party let down Britain. We are aware of those issues, and they are part of our negotiations. We will see what we can do for the sector into the future.

[Clive Jones (Wokingham) (LD)]

I have heard from so many businesses in Wokingham that have suffered post Brexit with masses of red tape limiting their exports. Losing key trade relationships in Europe has meant that many local businesses have seen their profits evaporate. What are the Government doing to develop and strengthen trade with Europe, so that businesses in Wokingham can start to grow again? Agreeing a bespoke customs union would be a really good start.

[Peter Kyle]

The area over which we have the most agency is regulation in this country, and this Government are pledging to reduce the burden on business by 25%. We are very aware of the issue of regulation and barriers to trade, and I mentioned it in my meetings with three EU commissioners just in the last fortnight. Part of the reset is aimed at reducing the burdens on business.

It is good to see that Members from many parties in this House have a real interest in engaging in debate about healing our relationship with the EU and creating new opportunities with our biggest trading partner—with the exception of one party opposite, whose Members are all sitting there, silent. I wonder why.

[Daniel Francis (Bexleyheath and Crayford) (Lab)]

10. What steps he is taking to support micropubs in Bexleyheath and Crayford constituency.

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[The Secretary of State for Business and Trade (Peter Kyle)]

In the face of global uncertainty, the Government are acting with boldness, creativity and urgency to back British business. We will soon publish our steel strategy to secure an internationally competitive, investible and sustainable future for British-made steel. We are making highly significant interventions on energy. The supercharger discount will increase next month, further cutting costs for around 500 of the most energy-intensive businesses. The British industrial competitiveness scheme will slash electricity bills for 7,000 businesses by up to 25% from 2027.

We are helping businesses to scale and grow, with the British Business Bank making the largest ever equity investments and UK Export Finance working with banks to generate £11 billion-worth of support for small businesses to export. We are opening new markets, with the India free trade arrangement now through both Houses of Parliament. Just last week, I was in Brussels to sign a new competition co-operation agreement. I expect my Department to match the dynamism of the best of British entrepreneurs, and I am proud to report that with this Labour Government, it is.

[Jayne Kirkham]

Soul Farm, which delivers organic and sustainable food, is an example of a co-operative business in my constituency that benefits its community. I also have the “Save the Stag” campaign in Ponsanooth, which is trying to take over and run the local pub, as has already been done at the Ship Inn at Portloe. Setting up or transitioning to a co-op model can be difficult. Will the Minister update me on what support the Government are providing to help new co-ops to start up and existing businesses to transition to employee ownership?

[Peter Kyle]

I am grateful for my hon. Friend’s important question. She will know that our manifesto committed to double the size of the co-op and mutual sector, and we are well on the way to doing so. She will also know that a consultation on this issue closed very recently. We are analysing the results and we will make further statements very soon.

[Mr Speaker]

I call the shadow Secretary of State.

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

The Government do not create jobs; business does. With unemployment rising, this is the last chance to ask the Secretary of State a question ahead of the start of April when a tsunami of business rate rises will hit. Shops and restaurants will see a 50% increase on average and the business rates of hotels will double. He and I both represent wonderful Sussex constituencies full of hospitality, high street and tourism businesses, but young people need those jobs. For their sake and for others, will he finally postpone his business rate rise?

[Peter Kyle]

I enjoy these exchanges with the shadow Secretary of State. I note that Reform’s self-styled shadow Secretary of State—or, as I call him, the shadowy Secretary of State—is not in his place, despite being just next door in the Tea Room a few minutes ago. I think that speaks volumes.

The shadow Secretary of State knows that the private sector has created 380,000 jobs under this Government. We will continue to grow the economy and the number of people in work, and make sure that people benefit from all the rights we are delivering, which are pro-business and pro-worker. He spent 14 years letting down Britain. Now he has spent 18 months talking it down.

[Andrew Griffith]

The Secretary of State forgets that I have not even been here for 14 years. Some days it feels like that, but I can assure him that it is not the case. There was no answer to that question, so let me try another. Does he agree that there is something pretty badly wrong with employment law in this country when Peter Mandelson, the friend of a convicted paedophile and leaker of classified Government documents, walks away with a £75,000 pay-off? The permanent secretary thinks that is good value for money. Will the Secretary of State review Labour’s policy of uncapping employment tribunal payouts for the highest earners?

[Peter Kyle]

As is so often the case when we have these exchanges, the shadow Secretary of State spends a lot of his time slagging off his own record in office. The Conservatives had 14 years to reform tribunal rights—they did not even touch it. They had 14 years to update workers’ rights and employment status in this country—they did not do it. The economy moved forward; they failed to move forward.

Turning to the issue of Peter Mandelson, I start by recognising that there are victims at the heart of this debate and the issues surrounding it. Those victims are in my mind today as I answer this question, and they have been all the way through. We will make sure that those victims get the justice they deserve. When it comes to the issues surrounding Peter Mandelson, there are multiple inquiries under way. Thames Valley police is leading on a criminal inquiry, and I will leave it at that.

[Tracy Gilbert (Edinburgh North and Leith) (Lab)]

T3. I refer Members to my declaration of interest as a former employee of USDAW. The new rights of trade union access in the Employment Rights Act 2025 could be game changing, but there is a proposal to cap fines for breaking new rules at £75,000, which is loose change for union-busting employees like Amazon. Will my hon. Friend consider setting fines at a percentage of global turnover, as is the case for GDPR breaches and ticket touting websites?

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[Tom Tugendhat (Tonbridge) (Con)]

T7. Would the Secretary of State care to join me for a pint of Larkins in Kent, where we can discuss the effect of his business rate relief on small businesses? The high streets in Tonbridge, Edenbridge and Borough Green are doing as well as they can, but they are struggling, and one of the reasons why is the hit on hospitality industries. It has already cost The Man of Kent in East Peckham, but perhaps we could meet at another pub and the Secretary of State could hear about the impact from the publican themselves?

[Peter Kyle]

I am always grateful for invitations to drinks with the right hon. Gentleman. I might well ask him to come to Hove, though; I have been to his constituency a number of times over the years and it is about time he visited mine. When he is there, he will see a thriving hospitality sector, but one that does need support to meet its full potential. We accept that, which is why we have introduced so many support packages since we came into office. What the hospitality sector needs is what every other sector in the economy needs: a stable industrial strategy—

[Mr Speaker]

Order. Secretary of State, we have a lot of Back-Benchers who are desperate to get in and who want to hear from you.

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[Sally Jameson (Doncaster Central) (Lab/Co-op)]

From Kingswood accountants to Automated Analytics and our young traders market, Doncaster is home to many businesses run by ambitious entrepreneurs. Will the Minister update the House on how Government support, such as the start-up loan scheme and the growth guarantee scheme, are helping young entrepreneurs and start-ups, and on what more we can do in this policy area?

[Peter Kyle]

I am grateful for my hon. Friend’s advocacy on this issue. Britain is the start-up capital of Europe. We are doubling down to ensure that once businesses are started up, they can scale up, stay and build their innovation here, which is why we are also the unicorn capital of Europe. We will double down and make sure that all that innovation, job creation and wealth creation remain here benefiting Britain, including my hon. Friend’s constituency.

[Mr Gagan Mohindra (South West Hertfordshire) (Con)]

Anchor Sound and Security, based in Kings Langley, explained to me how it is disincentivised to hire more employees due to rising compliance costs and regulatory uncertainty. What is the Minister doing to stop regulations stifling small business growth and destroying the strong relationships between employer and employees?

[Peter Kyle]

The Government have a commitment to reduce the regulatory burden on business by 25%. My Department led on almost £1 billion of regulatory reform for company reporting in just the first weeks of our taking office. The small business plan and strategy will deliver for small businesses, on top of the industrial strategy, of course, which is getting our economy facing the future and into solid growth for now and the future.

[Lauren Edwards (Rochester and Strood) (Lab)]

I add my voice to that of my hon. Friend the Member for Bexleyheath and Crayford (Daniel Francis) in calling on the Government to publish the review of market access for small breweries as soon as possible. I was delighted that Moot Brew brewery from Halling in my constituency produced the guest ale for the Strangers’ Bar in the House of Commons before Christmas. Will the Secretary of State support a national guest beer agreement policy, so that more fantastic local brewers such as Moot are represented in my local pubs?

[Sir Iain Duncan Smith (Chingford and Woodford Green) (Con)]

Small-volume business manufacturers in the automotive sector are having a terrible time at the moment. They rely on exports, and exports to the US are critical. Although I welcome the agreement the Government struck, costs are still four times what they were before President Trump introduced his tariffs, and those businesses are also being squeezed by business rates and national insurance at home. Will the Secretary of State make urgent representations to the Chancellor? The market is very delicate, and something must be done to reduce costs.

[Peter Kyle]

The right hon. Gentleman raises an issue that is close to my heart. The Government and I care deeply about the future of the automotive sector. Exports are incredibly important to it, but so is the security of supply chains. I have raised this issue not only with our US counterparts and other export markets but with the EU, to protect supply chains. My ministerial colleague chaired the Automotive Council just yesterday; we are listening, gauging and acting on behalf of the sector. Automotive production fell by 50% when the Conservatives were running the country. We are trying to get it back up to where it deserves to be.

[Mr Speaker]

I call the Chair of the Business and Trade Committee.

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[Martin Vickers (Brigg and Immingham) (Con)]

Since part of Grimsby falls in my constituency, I join my Member of Parliament, the hon. Member for Great Grimsby and Cleethorpes (Melanie Onn), in celebrating Great Grimsby Day. I recently attended a meeting with the hon. Member for Scunthorpe (Sir Nicholas Dakin) and a group of potential investors in the steel industry, who I know have made approaches to the Secretary of State. Can he give me an assurance that all potential private sector investments in the industry will be given serious consideration?

[Peter Kyle]

I congratulate the hon. Member on Great Grimsby Day, and I can give him that assurance.

[Alison Taylor (Paisley and Renfrewshire North) (Lab)]

I thank the Minister for speaking to me about the poor postal service in Dargavel Village in Bishopton. I know he is working hard to resolve matters and answer questions and had meetings yesterday, and I thank him for that. However, as he will appreciate, this matter is of particular importance in Scotland due to the elections on 7 May, because postal votes will be issued soon. In Scotland we have an NHS with significant waiting lists, and we cannot have people missing medical appointments, so on behalf of residents of Bishopton in particular, may I stress the urgency of this matter?

[Dr Al Pinkerton (Surrey Heath) (LD)]

Yesterday I met representatives of the British Chambers of Commerce, who relayed the profound concerns of the UK automative industry that it might be excluded from the European Union’s proposed industrial accelerator Act. Nissan and Honda have already broken cover to say that their futures may be uncertain unless they are included in the “made in Europe” rules. What is the Secretary of State doing, with his Front-Bench team and across Government, to ensure that the UK automotive sector is not placed at a competitive disadvantage as a consequence of those measures?

[Peter Kyle]

The hon. Member’s question is incredibly important. He will know that my ministerial team and I have been very active on this issue. Just a couple of weeks ago in Brussels I raised it directly with Commissioners. He will also know that in the proposed Act, which has not yet been introduced, there are potential challenges for the automotive sector. We are working with our EU colleagues to make sure that voices of the business community are being heard loud and clear and that the automotive sector—in which 86% of the components assembled in this country come from EU countries—is respected, valued, and secure in the future.

[Brian Leishman (Alloa and Grangemouth) (Lab)]

The sudden shift in steel import policy has created uncertainty for firms that have invested heavily in expanding their operations based on previously stable trading conditions. Will the Secretary of State commit to working with affected businesses in Scotland, including Central Rebar in Alloa, and provide clarity to prevent further disruption and to ensure that companies vital to the Scottish industrial base are not placed at a competitive disadvantage?

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[Euan Stainbank (Falkirk) (Lab)]

Given the global energy crisis, manufacturers reliant on gas will struggle with the recent spikes in energy costs. Will the Secretary of State confirm whether his Department is considering a transitional dual fuel discount, alongside the British industrial competitiveness scheme, for industries that will continue to use gas for the foreseeable future?

[Peter Kyle]

My hon. Friend will know that the impact of BICS is essential, and it will be fundamental in getting growth into the economy and sustainable businesses into the future. We are looking carefully at how the learning from that can be applied in other areas.