Oral Answers to Questions

Peter Kyle Excerpts

Thursday 2nd July 2026 Commons Chamber

[Dr Zubir Ahmed (Glasgow South West) (Lab)]

4. What recent steps his Department has taken to support the advanced manufacturing sector.

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

Strong delivery of the 10-year modern industrial strategy is ongoing, including the investment in the British industrial competitiveness scheme—the long-term industrial intervention to address energy costs. We also have the advanced manufacturing sector plan, which includes sector specific cross-cutting measures to support manufacturers right across the United Kingdom.

[Dr Ahmed]

The Secretary of State will know very well that Glasgow South West is home to a storied, nationally significant collection of advanced manufacturing, from Type 26 frigate construction at BAE Systems, to small satellites at Craft Prospect, to the maritime supply chain at the Malin Group. What conversations is the Secretary of State having with businesses in Glasgow and Glasgow South West specifically about how we can grow this advanced manufacturing base, so that Glasgow can play its full part in Britain’s reindustrialisation?

[Peter Kyle]

I am really grateful to my hon. Friend for highlighting the extraordinary achievements of our country that have stemmed from his constituency. As he knows, on the Clyde they have adapted from manufacturing the Dreadnought through to the frigates that he mentioned. We are in another era of change, and the Government are on their side in this latest transformation. They will have access to a range of sector-focused interventions from the industrial plan, as well as support for access to finance, innovation and tech adaptation. He will also be aware that the Glasgow city region will receive £50 million through the local innovation partnerships fund—a fund that I launched when I was in my previous job at the Department for Science, Innovation and Technology. I am pleased to see it being put to good use in his constituency.

[Mr Will Forster (Woking) (LD)]

The largest employer in Woking is McLaren. It sells around half of its cars to the US, which, needless to say, has not been easy since Donald Trump took office. What are the Secretary of State and his Department doing to work with the US to lower trade barriers, so that we can continue to have high-quality advanced manufacturing jobs in Woking?

[Peter Kyle]

I am grateful to the hon. Member for championing what is an extraordinary company. I met the chief executive of McLaren just in the last week, and I will be meeting him again in the next couple of weeks. This is a Government who are on its side—of course, we got tariffs reduced to 10% for 100,000 cars. I have spoken to my counterpart in the United States, the Commerce Secretary, numerous times about the fantastic cars produced in our country, both the high-volume mainstream products and these high-value precision products that do our country proud. I can tell the hon. Member that the deal we have struck with America does those businesses proud too.

[Mr Speaker]

I call the shadow Secretary of State.

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

This week, our hard-pressed automotive industry has sounded the alarm: under the zero emission vehicle rules, British car makers are being fined for making precisely the type of cars people want to buy. That is costing them £5 billion a year, denying consumer choice, damaging British jobs and putting automotive firms at risk. Like me, the Secretary of State met with car makers earlier this week, so will he listen to them, adopt the Conservative policy of scrapping these rules and support our great British automotive industry?

[Peter Kyle]

I am very grateful for the hon. Member’s question because he raises important points. First, we are a listening Government, which is why we have acted to tackle the energy costs faced by the automotive sector—of course, we inherited those energy costs from the Tory Government. The BICS will lower the cost of producing cars in this country.

The hon. Member mentioned the ZEV mandate. I am listening very closely to him on that. In general terms, when it comes to environmental regulations across the piece, it is really important that we deliver net zero targets and get to that destination. We need to be creative in how we get to that destination, and I speak in general terms. He spoke to the automotive sector earlier this week, as I did. I was very honest about these issues. He should have been honest, too: his party brought in the rules in the first place—he should have apologised for them if he does not like them.

[Richard Baker (Glenrothes and Mid Fife) (Lab)]

5. What steps his Department is taking to increase trade with Europe.

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

We are investing £2.5 billion over the next three years in tackling the issues around youth unemployment. That will include new initiatives, such as a further 19 technical excellence colleges to provide high-quality training for jobs in key sectors.

[Mr Mohindra]

I recently met people from Mission Employable, an incredible charity based in Chorleywood, which offers supported internships for young people with special educational needs and disabilities. It was deeply concerning to hear that in England only 6% of adults with learning disabilities are in paid work. Will the Secretary of State outline how he is working with other Departments to ensure that the youth jobs grant does not disincentive employers in hiring people from supported internship backgrounds who are not claiming universal credit?

[Peter Kyle]

The hon. Gentleman raises an incredibly important issue. It sounds as if the charity that he references is doing incredibly important work locally. We want to support that work. It is a shame that in the years running up to coming into office, apprenticeship starts had fallen by 40%. We are reinvesting in apprenticeship starts and ensuring that they are available to everyone, from every background and with every ability.

[John Cooper]

While still at school, I played my part in the creative industries by playing in bands with names as louche as Street Lethal and Cheap Sweeties. It was very lucrative.

[John Cooper]

I’ve got it! In the modern era, that all important first job is increasingly hard to find because of the Chancellor’s jobs tax and the massive 330-page Employment Rights Act 2025. Will the Secretary of State go to the new northern powerhouse Cabinet and impress upon the Chancellor the need to save our summer jobs and cut the burden on industry?

[Peter Kyle]

I am glad to hear about the hon. Gentleman’s childhood experiences. In retirement, perhaps we will see him in the musical “Mama Mia!”. My first job was on a battery chicken farm collecting eggs, so I hope that I can take a different path when I move away from the current profession. I assure him that not only are we are investing £2.5 billion but we are working across Departments to ensure that 400,000 students in disadvantaged schools will take up AI and tech skills through the tech first programme. These are the kinds of initiatives that we are wrapping around young people so that they get support for the age in which we are living. Extending the hours for 13-year-olds is not a serious solution to the challenges we face, but that is the only answer that we have heard from Members on the Conservative Benches in recent times.

[Callum Anderson (Buckingham and Bletchley) (Lab)]

Small and medium-sized enterprises are often best placed to kick-start a young person’s career, but when I met a group of small business owners at the Crown pub in Granborough, many told me that the up-front costs of training and supervision often act as a barrier to taking on young people. Will the Secretary of State update the House on what support the Government are providing to incentivise small and microbusinesses in helping to give opportunities to young people?

[Peter Kyle]

My hon. Friend makes a really important point. We have created a specific fund to support SMEs and young people to start up businesses. It is incredibly important that people from all backgrounds get to explore their entrepreneurial talents, and that is exactly what this Government are doing to make that happen.

[Melanie Onn (Great Grimsby and Cleethorpes) (Lab)]

8. What steps his Department is taking to support the creation of well-paid jobs in Great Grimsby and Cleethorpes constituency.

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

We are investing £720 million in the greater Lincolnshire investment fund over the next 30 years as part of our devolved funding and support for areas just like my hon. Friend’s.

[Melanie Onn]

News of apprenticeship incentives, the youth jobs grant and the jobs guarantee will provide a welcome boost for my brilliant young people in Great Grimsby and Cleethorpes, but they and other jobseekers will want to know what permanent jobs they can move into. We have huge opportunities and experience in new clean energy and the supply chain. What action is the Secretary of State taking to expand existing businesses and attract new investment in this sector to deliver jobs for my hard-working constituents?

[Peter Kyle]

My hon. Friend is right that her constituents are hard-working and they deserve to have a Government on their side: in this Government, they have that. We have invested £140 million in a pilot with the mayoral strategic authorities that will benefit her area. That will connect 16 to 24-year-olds who are not in education, employment or training to local apprenticeship opportunities in her area. We are also investing £2.5 billion in the youth guarantee and the growth and skills levy over the next three years. NEETs rose by 250,000 under the Tories and we are doing everything we can to get that down, including in her area by providing specialist advice via the Business Lincolnshire growth hub.

[Chris Vince (Harlow) (Lab/Co-op)]

9. What steps his Department is taking to help support unpaid carers in the workplace.

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

T1. If he will make a statement on his departmental responsibilities.

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

I am grateful for the opportunity to say that one year ago we published our industrial strategy. Since publication, work driven by the industrial strategy has secured around £360 billion of private investment into the eight industrial strategy sectors and £33 billion-worth of export announcements, supporting up to 120,000 jobs. We are backing winners and giving our sectors with the highest potential everything they need to succeed, and in year two we will go further. We will be cutting energy costs for 10,000-plus manufacturing firms, working with businesses to create jobs for those eight sectors—the IS-8—to secure the workforce of the future, and cutting regulatory burdens to unlock investment. In just under two weeks, on 15 July, our trade deal with India will enter into force. India has never implemented a deal of this size, which could boost UK GDP by £4.8 billion every year in the long run. That is just the start. We will continue to drive delivery to secure investment and good high-paying jobs into year two and beyond.

[Mr Mohindra]

Micklefield Hall in Sarratt is a great example of a small business that has survived covid, only to be repeatedly hit by this Labour Government. Its representatives have contacted me to say that they are keen to borrow money for long-term investment, but fearful of yet more taxes on business. What reassurances can the Secretary of State give to small businesses that want to invest for future growth, such as Micklefield Hall?

[Peter Kyle]

It is good to see the hon. Gentleman again in the same session—I suggest that he buy a lottery ticket tonight, because he is certainly having a lot of success in the draw. I can assure him that we are investing in small and medium-sized enterprises, and we have funding targeted at helping young people to start their own businesses. He lists some of the perceived challenges in the economy at the minute. Do not forget that youth unemployment went up by 250,000 in the years leading up to the general election without all the things that the Conservatives keep mentioning we are doing, such as giving rights and delivering investment into the economy.

[Ian Lavery (Blyth and Ashington) (Lab)]

T2. A small coach operator in my constituency of Blyth and Ashington has local authority school contracts, and he has seen the price that he pays for fuel increase by 38% per month, without any additional support from the council. What assessment has the Secretary of State made of the potential to extend schemes that support other fuel-intensive businesses to those tasked with getting our children to school?

[Peter Kyle]

I pay tribute to the business in my hon. Friend’s constituency that he advocates for. Businesses around the country are paying the price of, and having to adapt to the challenges posed by, the Iran war. It is a good job that we have a Prime Minister who kept us out of the war—those on the Conservative Benches would have plunged us into it and made things even more difficult for businesses in my hon. Friend’s constituency and across the country. On his specific question, I can tell him that we are engaging regularly with refiners, importers and distributors to ensure that any emerging risks are identified and managed properly.

[Mr Speaker]

I call the shadow Minister.

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

There is a bit of an end-of-term feel in the House at the moment. I heard the Secretary of State set out his answer to his essay question, but I point out that UK business confidence is at a four-year low, unemployment is up, millionaires are fleeing, and the Department’s own figures show inward investment falling by 26% this year to the lowest level in over a decade. I would say that is a failing mark. What does the Secretary of State plan to do differently when the new headteacher arrives?

[Peter Kyle]

I always look forward to the hon. Lady’s questions. The fundamentals of running our economy are going in the right direction. Growth is up, and inflation is down. These are things that the Conservatives never achieved when they were in government, but we have achieved them in two years. We have got more growth into our economy in the last two years than they achieved in multiple years leading up to the election.

[Dame Harriett Baldwin]

I do not know about you, Mr Speaker, but I did not hear a plan for improvement in that answer. I am afraid the mark is “must do better”.

Let us turn to another bit of the Secretary of State’s coursework in this failing end-of-term report. Will he agree today to compensate all the Horizon victims, and to get Fujitsu to pay towards it, by the end of the year?

[Peter Kyle]

I can assure the hon. Lady that the Minister responsible, my hon. Friend the Member for East Renfrewshire (Blair McDougall), has met victims regularly. We are accelerating the compensation and the justice from what we inherited, because it was going too slow to deliver the justice that people required. When it comes to Horizon, we will deliver the justice and compensation that people require.

On the plan, our industrial strategy is crowding £360 billion of private investment into key sectors of our economy. We are lowering energy prices for manufacturers. Through plan after plan after plan, we are delivering the change that business is calling for and needs.

[Martin Rhodes (Glasgow North) (Lab)]

T3. How are the Government working with trade unions to support workers in understanding and claiming their new rights under the Employment Rights Act 2025?

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[Douglas Lumsden (Aberdeen South) (Con)]

In Aberdeen South, there is a jobs emergency, with 1,000 jobs a month being lost from the oil and gas sector. So will the Government ditch their damaging policies that are destroying the oil and gas industry and destroying jobs in Aberdeen South?

[Peter Kyle]

This Government are investing record amounts in the transition to renewable energy. We need to break the dependence on fossil fuels that our country has been forced into by the Conservative party. We will do so by creating wealth, jobs and businesses in the meantime.

[Leigh Ingham (Stafford) (Lab)]

T4. In Stafford, Eccleshall and the villages, 12.6% of the workforce, which is nearly 5,000 people, work in logistics and contribute about £400 million to our national economy. However, with over 85% of UK fulfilment warehouses expected to be automated by 2030, many of these jobs will face significant changes. Please can the Secretary of State tell me what assessment the Government have made of the impact of automation on working communities, and what support will be available to help communities such as mine?

[Peter Kyle]

I am extremely grateful for my hon. Friend’s really important question. As I have said throughout this session, we are investing in young people and people in work, so they can adapt to the changes happening in the economy because of the transition to digital technology, particularly with AI. We are providing flexible support through bursaries for younger learners and learner support funding for adults. Do not forget the work that Business and Trade Ministers are doing jointly with the Secretary of State for Science, Innovation and Technology to ensure that people in the workplace are trained and have all the skills they need to thrive in the digital age.

[Dr Ellie Chowns (North Herefordshire) (Green)]

Small rural businesses in villages such as Pembridge in my constituency tell me that the combination of high business and VAT rates and rising national insurance contributions means they are facing a struggle for survival. Small rural businesses face greater pressure than their urban counterparts, with lower footfall and seasonal fluctuations in trade, so they operate with very tight margins. Does the Minister recognise the additional pressures faced by such businesses and that existing support schemes simply are not enough, and what more will he do to support businesses in constituencies such as mine?

[Paul Davies (Colne Valley) (Lab)]

T5. Kirklees college provides the training and qualifications needed to kick-start a wide range of careers for many young people in my constituency. However, all too often many from deprived backgrounds struggle to access such education. Will the Secretary of State outline what steps the Department is taking to improve accessibility to further education for people from more deprived backgrounds?

[Peter Kyle]

I can provide all the reassurances my hon. Friend seeks. We are of course investing in the new technical colleges, as I have outlined. We are investing in young people so that they have the skills to transition from education into the workplace. We know that young people face challenges in this era because of not only the legacy of the last Government but the transition towards an AI future, which is disrupting the workforce. We are focused on training people, and we are working very closely with Alan Milburn, who brought consensus to the diagnosis of the challenges facing young people, and I hope will now bring consensus across the House to how we grab this issue once and for all.

[Alicia Kearns (Rutland and Stamford) (Con)]

In early 2025, Rutland police caught a local shop owner red-handed with a carload of illegal fake cigarettes. Since then, I have reported this to His Majesty’s Revenue and Customs, the police and trading standards, and nothing has happened. Will the Minister please haul in trading standards, because this individual runs two shops in my constituency, which are both still open, attracting in children and encouraging the sale of vapes? That is wrong, and such shops are clearly part of the black economy.

[Lloyd Hatton (South Dorset) (Lab)]

T6. The Dorset Innovation Park already has a growing ecosystem of defence companies, including BattleLab and a proposed factory, which are developing cutting edge drone technology. The opportunities are truly immense. Will the Minister commit to working alongside DSIT and the Ministry of Defence to help establish the park as a hub for defence firms looking to develop the very next generation of drone technology?

[Peter Kyle]

I am already working with DSIT on these issues, but because of my hon. Friend’s informed question and the imploration for me to do more I will double down on that. He is giving real voice to an incredibly important part of the defence technology sector which we need to foster. The defence investment plan invests much more in drone technology. We will be investing more than £5 billion in drones over the next four years, and that his constituency will be playing a very key role in that.

[Peter Swallow (Bracknell) (Lab)]

T7. Bracknell residents are concerned that two vital local post offices, in Crown Wood and in Bracknell town centre, are at risk of closure because of the travails of their host stores, Morrisons Daily and TGJones. That follows the recent closure of a post office in Easthampstead. Will the Minister please set out what work the Government are doing to protect these vital local services?

[John Glen (Salisbury) (Con)]

I welcome the appointment of Parminder Kohli as the chief executive officer of the Office for Investment. He is a personal friend of mine, and he will bring 30 years of experience in the oil industry. Will the Secretary of State set out what measures of success Parminder will face, so we can judge what impact the Office for Investment makes and what role he will play?

[Peter Kyle]

I am grateful to the right hon. Gentleman for his informed question. I, too, celebrate this important appointment and the Office for Investment is doing great work. The criteria for success that I see are how Britain can get more scale-up investment into companies, so they do not have to go elsewhere around the world to find the capital they need to grow, and how more people can start, build and scale right here in the UK. I often ask myself why the continent of Europe does not have a single trillion-dollar company. The Office for Investment, working with the Government, can start to answer that question.

[John Slinger (Rugby) (Lab)]

When I visited NDT Equipment Ltd in my constituency, the director Dan Lenton showed me the ultrasonic test calibration blocks and reference pieces that it uses and supplies to manufacturers in a wide range of sectors in the UK and abroad. This steel is not manufactured in the UK; it is imported and is high grade. I know Ministers are being flexible and talking to hon. Members. Will the Minister please consider the grade of steel that the company uses, which I believe is EN3B, and exempt it from the tariffs?

[Mr Will Forster (Woking) (LD)]

Last night this House debated the extended producer responsibility, which is seeing breweries, pubs and other businesses pay twice to recycle glass bottles. What meetings has the Department for Business and Trade had with the Department for Environment, Food and Rural Affairs to raise the economically damaging nature of this tax? If it has not raised concerns, will it?

[Peter Kyle]

I can assure the hon. Gentleman that we are having conversations with DEFRA over these issues. We want to ensure that regulation is right. We need to incentivise the right behaviour and the circular economy, but we need to do so in a responsible way. We are always engaged with the sectors that are impacted, not just because of regulatory measures but because of external measures facing our economy.

[Jayne Kirkham (Truro and Falmouth) (Lab/Co-op)]

The Government’s critical minerals strategy was a fantastic achievement, with clear targets, and it will kick-start a nascent industry. To take the next step to get the sector up on its feet and to a more competitive place, will the Minister support a Government price certainty mechanism for lithium?

[Tom Gordon (Harrogate and Knaresborough) (LD)]

I recently visited Envirovent, a manufacturer and supplier of sustainable ventilation products just outside Harrogate. It was recognised in The Sunday Times’ best places to work 2026 and recently produced its three-millionth ventilation fan unit. Will the Minister join me in congratulating Envirovent on those achievements, and perhaps visit to see the fantastic work it does for the people of Harrogate and North Yorkshire?

[Peter Kyle]

I certainly join the hon. Member in celebrating the success of that business—and businesses across the country that are doing such great work for the people who work in them and our overall economy. I would like to hear more about the business, and if I get the opportunity, visiting would be a pleasure.

[Mr Speaker]

I call the Chair of the Business and Trade Committee.

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

I know the Secretary of State will join me in wishing the United States a very happy 250th birthday on Saturday. It was John Pym and Members of this House four centuries ago who helped found the American economy, and I know the whole House will wish the young republic well. But it is the Republic of France that I want to ask the Secretary of State about.

Today, I am publishing correspondence between the Committee and the Port of Dover, warning that we will have, without doubt, a critical incident at the border unless France is persuaded to suspend the entry and exit system. The modelling has been done, and we know the chaos that will follow, so what will the Secretary of State do to ensure that we avoid this peril?

[Peter Kyle]

I am grateful for my right hon. Friend’s advocacy, and I share in his birthday message to the people of the United States of America. The Department for Transport is engaged with the Port of Dover, and thanks to the functional and productive relations we have with the EU, we are working with it on those issues to ensure that the worst-case scenario my right hon. Friend outlines does not come to pass,

[Max Wilkinson (Cheltenham) (LD)]

The Secretary of State is aware of the importance of Cheltenham’s cyber-security industry, which is a key part of this nation’s defence efforts. I have good news for him: we are about to break ground on the Golden Valley development, bringing 12,000 jobs in cyber and tech to my town, as well as much-needed new homes. Would the Secretary of State and his colleagues like to come and visit this success story in due course, not for the ground breaking next week, but in the future? It will be popular with the incoming Prime Minister.

[Peter Kyle]

The hon. Member’s enthusiasm is infectious. He came to meet me when I was Secretary of State at the Department for Science, Innovation and Technology to talk about the Golden Valley, and we spoke about our shared ambition in that area for the clustering of expertise that having GCHQ and others brings to the community he represents. I share in the hon. Member’s celebration and hope that I get to visit at some point soon.

[Ms Julie Minns (Carlisle) (Lab)]

The owner of Palace Cycles recently told me that while explaining to a customer that he would not service the illegally modified e-bike that had been brought into his shop, the bike shot across the shop of its own accord. When will the Government regulate to ban the sale of dodgy, illegal, unsafe e-bikes and the kits that create them?