Customs (Tariff and Miscellaneous Amendments) (No. 4) Regulations 2026 Debate
Full Debate: Read Full DebateRobbie Moore
Main Page: Robbie Moore (Conservative - Keighley and Ilkley)Department Debates - View all Robbie Moore's debates with the HM Treasury
(1 month, 2 weeks ago)
General CommitteesIt is a pleasure to serve under your chairmanship, Mrs Barker. My Keighley and Ilkley constituency is home to several businesses that have major concerns about the impact of this statutory instrument on them and their employees. Airedale Springs, Olicana Products and GESIPA have all been in contact with me about the proposed new tariffs, by which they have been completely blindsided. One of the team at GESIPA described the impact of the tariffs as “devastating”. The managing director of Olicana Products has warned that if this heavy-handed legislation passes unchanged, it will trigger a catastrophic chain reaction across every single UK industry that is reliant on these metals.
Those businesses and business leaders have contacted me and many of my Conservative colleagues as they are deeply concerned about the steel industry. In their correspondence with me, they have been crystal clear that these measures, should they go ahead, will increase costs, reduce supply, weaken competitiveness and directly threaten thousands of manufacturing jobs, while doing little to increase domestic steel production. They are also concerned that the legislation is being rushed. They have had no time to adjust to the mechanisms that have been brought through, which will have severe cash-flow implications for their businesses.
Let me read out directly some of the emails that have been sent to me. Olicana Products said:
“We all want a thriving, strong UK steel sector. However, this poorly planned law will achieve the exact opposite. By choking off essential products”—
and imports that are coming in to their business—
“it will decimate our business and furthermore cause domestic steel consumption to plummet.
We need to act immediately to force a government U-turn before irreplaceable damage is done to our business, our livelihoods and our economy.”
Those are not my words. They are the words of a managing director who employs many of my Keighley and Ilkley constituents.
Diana Scholefield, the managing director of GESIPA—a business that has been running in my constituency for 52 years—contacted me because she is deeply worried about cash-flow challenges. The company tells me that, despite the increase in employer national insurance and minimum wage having a direct impact on its cash flow, this is the biggest challenge that it has faced in the 52 years it has been running. That will potentially have a direct impact on employment levels across my constituency.
In another email, Sean Parkinson, the managing partner of Airedale Springs, reiterated to me that:
“Our steel material suppliers consider that UK steel production capacity does not exist to replace many of the products being restricted”,
and that
“these measures will increase costs, reduce supply, weaken competitiveness and directly threaten thousands of UK manufacturing jobs”.
I say to the Minister—and all the Labour MPs sat opposite who seem to be more interested in looking at their mobile phones than at the detail of this legislation—that the explanatory memorandum states specifically that this delegated legislation is expected to have
“negative impacts on downstream businesses that use steel.”
It also states that
“the amendments in this instrument are likely to result in higher prices for steel products and an increase in costs for user industries”
and that:
“Outside of the steel and fabricated metals industries, there are likely to be impacts on the machinery and electrical equipment, aerospace, and automotive sectors. The largest user of steel, the construction industry, could also face an increase in costs.”
The memorandum also states that the instrument is most likely to impact “small and micro businesses”.
As we prepare to vote on this key piece of delegated legislation, which is due to come into force on 1 July, let me ask the Minister and Labour MPs a question. If they have read the impact assessment, as I assume they have—there is no costed impact assessment associated with the regulations, which is, I suspect, because the Government do not know what the consequences will be and do not want to put that into the public domain—why on earth are they comfortable voting for this legislation when they know its negative implications for many constituents employed in the manufacturing sector and for UK jobs? I certainly will not be supporting it.
Dan Tomlinson
I thank Members for their contributions and questions in this debate on an important statutory instrument. It is right and proper that the Opposition have the chance to question and interrogate the Government’s decision making on the significant change that we are bringing forward.
It is worth understanding that the Government have been engaging in detail with industry on this since the announcement in March. My understanding is that a number of codes—nine, I think—have been changed since that announcement. That is as a result of engagement and meetings with industry—with those downstream sectors—by the Minister for Trade, my hon. Friend the Member for Rhondda and Ogmore (Chris Bryant), and others on whether or not it is possible for them to access UK-produced steel.
The shadow Exchequer Secretary, the hon. Member for North West Norfolk, asked me about codes 14 and 27, which are of particular relevance to the aerospace and defence industries. The Under-Secretary of State for Business and Trade, my hon. Friend the Member for Stockton North (Chris McDonald), was asked about that earlier today. He has been meeting with that sector today, I believe, to talk about the impact on them and to consider what the Government can do.
The shadow Exchequer Secretary also asked about a review. It is the Government’s intention to keep this under review, with a formal review point after 12 months, as he noted. On the quota levels, I take the point that there is uncertainty at the moment, given that we are approaching 1 July. I hope that, in line with good policymaking principles, we will be able to set out that detail as soon as possible for the businesses affected.
The hon. Member for Keighley and Ilkley is always good at representing the businesses in his constituency and making his points clearly and forcefully. I commend him for his remarks today.
Could the Minister explain, not only to me but to the businesses in my constituency of Keighley and Ilkley, why, if the explanatory memorandum accompanying the legislation clearly states that these regulations are
“expected to have negative impacts on downstream businesses that use steel”,
he and his Labour party are comfortable introducing it?
Dan Tomlinson
I was just coming to that point. As the hon. Gentleman and the shadow Exchequer Secretary have pointed out, the Government are not hiding from the impacts of the measures on some downstream sectors and businesses. He has just read out the explanatory memorandum that the Government themselves produced. The Government have taken a strategic view: in the end, we need a tariff and quota system that protects domestic steel so that, if the worst happens and we need to ensure that we have domestic supply in times of crisis for vital production here in the UK, we have it. Hon. Members know that we have seen a significant reduction in steel production in the UK—I believe a reduction of 50% over the past 10 years—and the representations that the hon. Member for Keighley and Ilkley, and individual businesses and business groups have made to Ministers over recent months have of course been taken into account and considered, but on balance the Government’s view on this strategic assessment is that, in the end, strong production and a strong downstream sector go hand in hand.