Oral Answers to Questions

Robert Jenrick Excerpts

Tuesday 9th April 2019 Commons Chamber

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

2. What recent assessment the Government have made of trends in the level of manufacturing output.

[The Exchequer Secretary to the Treasury (Robert Jenrick)]

Manufacturing output has grown by 8.3% since the start of 2010, having fallen sharply as a result of the financial crisis. The manufacturing sector has seen productivity increase more than three times faster than the UK economy as a whole over the past 10 years. It accounts for almost half of UK exports, and directly employs 2.6 million people.

[Chi Onwurah]

According to Make UK, we now have the highest level of manufacturing stockpiling of any country in the G7 ever. The chamber of commerce tells me that, in the north-east, stockpiling is putting huge pressure on warehousing and cash flow. That is a direct consequence of Brexit uncertainty. What additional support will the Minister offer to manufacturers? I asked a similar question of the Brexit Minister last week, and he did not seem to know what I was talking about. Will the Minister acknowledge the link between manufacturing output, stockpiling, cash flow and financial viability?

[Robert Jenrick]

My right hon. Friend the Chancellor and other Treasury Ministers are working with the banks, which tell us that they are making funds available to businesses that need support as their cash flow is under pressure and need working capital in the months ahead. Of course, the best service that any of us in this House can do for manufacturers and businesses across the United Kingdom is to support a negotiated exit from the European Union as soon as possible.

[Sir Gary Streeter (South West Devon) (Con)]

Building on the previous question, I am told that manufacturing output in Plymouth is holding up well, but that is partly due to customers purchasing to stockpile because of Brexit uncertainty. That may result in a lack of demand once we get Brexit over the line, if we ever do so. Have the Government given any thought to supporting manufacturing businesses through any short-term downturn that paradoxically might occur once we get Brexit over the line?

[Robert Jenrick]

The Treasury and other Departments have advanced plans to support the manufacturing sector should that be required in the event of a no-deal exit. The evidence we see shows that, if we can secure a negotiated exit, there is a great deal of business investment waiting to go back into the economy. This year could turn out to be a strong one for the British economy, if only we can secure the deal.

[Sir Vince Cable (Twickenham) (LD)]

Does the Treasury acknowledge the wisdom in the letter that the Engineering Employers’ Federation, which represents 20,000 companies and 1 million workers, sent to the Prime Minister yesterday? It spoke of the renaissance of manufacturing in the earlier part of the decade, but is now expressing despair and is asking simply for the revocation of article 50.

[Robert Jenrick]

If the right hon. Gentleman wants to support this country’s manufacturing sector, he and his colleagues should support a deal so we can leave the European Union in an orderly fashion. We are taking a number of important steps to support manufacturing, including increasing the annual investment allowance from £200,000 a year to £1 million, making research and development tax credits more generous, and backing schemes such as “Make Smarter”, which help the manufacturing sector to embrace automation and digital technology and move forward with confidence.

[Mr Philip Hollobone (Kettering) (Con)]

Can the Minister confirm that, despite the Brexit uncertainty, Britain remains the second best country in the whole world for foreign direct investment?

[Robert Jenrick]

I can confirm that. The UK remains the European leader for foreign direct investment, venture capital investment and tech investment. Even in manufacturing, which is under a certain degree of strain, the UK remains the ninth largest manufacturing nation in the world.

[Peter Dowd (Bootle) (Lab)]

“Strain” is not the word. In the real world, production and manufacturing output remained 6.8% and 2.7% lower respectively in the three months to January 2019, compared with pre-downturn GDP in the first quarter of 2008. After nine years of policy failure, should the Chancellor and his team not stop throwing spanners in the manufacturing works and instead oil the machine?

[Robert Jenrick]

Not at all. Manufacturing exports are up 35% since 2010. We are investing in the manufacturing sector through our industrial strategy. We are creating a tax system that is pro-business. We are reducing corporate taxes to amongst the lowest in the developed world. The hon. Gentleman would do the opposite and reverse that. The very clear message that businesses give us, particularly international investors in this country, is that the threat of a hard left Labour Government dwarfs the risk of a Brexit outcome. We want to secure the future of the British economy in a resolutely pro-enterprise country.

[Peter Dowd]

What can I say? That old chestnut—and the Leader of the Opposition will be in No. 10 today as well. Anyway, I admire the Chancellor’s perseverance in trying to get the Prime Minister to grasp the concept of compromise—a challenging task, I have to say. Perhaps a less onerous task would be to sort out the problem with production. In the three months to January 2019, it fell by 1% compared with the same period last year, driven by a significant fall of 1.5% in manufacturing, which, of course, includes the beleaguered automotive sector. If the Government were a car, it would fail its MOT. The Chancellor has been putting manufacturing into reverse gear. Isn’t it time for a new car with a new driver?

[Robert Jenrick]

The British economy is remarkably robust in its present state. We are seeing continued economic growth, record levels of employment and record low levels of unemployment. Businesspeople, investors and entrepreneurs the length and breadth of the country know that the greatest threat to our prosperity is a hard left Labour Government.

[Kerry McCarthy (Bristol East) (Lab)]

3. What recent assessment the Government have made of trends in the level of public funding for renewable energy since 2010.

[Afzal Khan (Manchester, Gorton) (Lab)]

13. What recent assessment the Government have made of trends in the level of public funding for renewable energy since 2010.

[The Exchequer Secretary to the Treasury (Robert Jenrick)]

The Government have increased support for low-carbon electricity generation through consumer-funded levies, from £1.3 billion in 2010 to over £7.3 billion today, spending £30.7 billion since 2010. This support has enabled the UK to become a world leader in clean growth, and the private sector has invested more than £92 billion in clean energy since 2010.

[Kerry McCarthy]

I think that is quite a selective answer. A coalition of 20 community energy projects and affiliated groups has warned that the Government’s decision to axe the feed-in tariff incentive scheme could prove the final nail in the coffin for the sector. Since that warning was issued in February, at least 30 planned community energy projects have stalled. So what conversations has the Minister had with his colleagues in the Department for Business, Energy and Industrial Strategy to give proper support to community energy projects?

[Robert Jenrick]

I thank the hon. Lady for that question, but that is not our experience. The investment that I have just described that is going into the sector is very considerable. Renewable capacity has quadrupled since 2010. Renewables’ share of electricity generation increased to 33% last year—a record high. The UK is decarbonising and we are meeting our climate change targets.

[Afzal Khan]

Members across the House recognise the importance of funding renewable energy policies to tackle climate change and improve air quality, but that does not go far enough. In Manchester, 126,600 children are growing up in an area with an unsafe level of air pollution. As the Mayor of Greater Manchester highlighted, further investment is needed to tackle the scale of the problem and protect the health of the most vulnerable—our children. Will the Chancellor commit to providing the wider resources needed to protect our children from toxic air?

[Robert Jenrick]

The Mayor of Greater Manchester has the resources that he requires. The Government are supporting Mayors and urban areas across the country to take action on air quality, and we are providing money from national Government, for example through the £2.6 billion transforming cities fund, of which Greater Manchester has a significant share, to invest in the transport solutions of the future.

[Rebecca Pow (Taunton Deane) (Con)]

Although there is clearly more to do on climate change, surely action taken by this Government since 2010—we have reduced greenhouse gases, we have got more low-carbon jobs, especially in my constituency, and we are investing billions in renewables—must show our commitment.

[Robert Jenrick]

My hon. Friend is absolutely right. Last month, in the spring statement, my right hon. Friend the Chancellor was able to add to those policies by announcing a scheme to help small and medium-sized enterprises to reduce their carbon footprint; a new marine zone around Ascension Island; support for the renewables sector; the new future homes standard, to ensure that from 2025 homes are built with low-carbon heating and high levels of energy efficiency; and many other policies.

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

Tidal energy projects are powering ahead in Scotland and show substantial export potential. The Scottish Government recently announced support funding of up to £10 million to assist in commercialising its use. What support will the UK Government give the industry?

[Robert Jenrick]

The UK Government are supporting tidal energy. We have looked at any schemes that have become available to us. We have to balance the interests of the ratepayer, the taxpayer, to ensure that the schemes that we do support are the right strategic technology and the right value for money for the UK.

[Clive Lewis (Norwich South) (Lab)]

Will the Minister join me in paying tribute to one of this country’s most successful publicly funded renewable energy programmes ever? I am of course talking about the last Labour Government’s export tariff, the feed-in tariff scheme, the biggest single democratisation of energy that the UK has ever seen, cutting 700,000 tonnes of carbon. This month, however, in an act of supreme national and international self-harm, the Government killed it off—kaput, finito, game over. In the real world, how can anyone, anywhere believe that this Government take their climate change obligations seriously?

[Robert Jenrick]

The facts speak for themselves. The UK is on track to over-deliver comfortably on the first three carbon budgets out to 2022. The clean growth strategy sets out how we will meet our fourth and fifth carbon budgets, which take us to 2032, while keeping down costs for consumers, creating good jobs in the clean energy market and growing the economy.

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[Mr Virendra Sharma (Ealing, Southall) (Lab)]

19. What recent assessment his Department has made of trends in the level of productivity since 2010.

[The Exchequer Secretary to the Treasury (Robert Jenrick)]

Since 2010, UK labour productivity has grown by 3.9%, leaving it 1.9% above its pre-crisis peak. Slow productivity growth since the crisis is not a phenomenon exclusive to the UK, but is common across the G7. We have created the £37 billion national productivity investment fund to tackle it.

[Mr Sharma]

The UK’s productivity remains weaker than most other advanced economies. Does the Chancellor agree that the Government should lead the way in tackling the productivity crisis, starting with getting rid of the haphazard Transport Secretary?

[Robert Jenrick]

No. We are taking a range of interventions, including investing £600 billion in our national economic infrastructure. Over the course of this Parliament, investment in transport and other forms of infrastructure will be £460 million a week in real terms higher than under the previous Labour Government.

[Janet Daby (Lewisham East) (Lab)]

21. Whether he plans to allocate funding for the provision of sanitary products beyond secondary schools and colleges.

--- Later in debate ---

[Jeremy Lefroy (Stafford) (Con)]

What plans are the Government making for a UK investment bank to take over the role of the European Investment Bank in the UK economy?

[The Exchequer Secretary to the Treasury (Robert Jenrick)]

In the spring statement, my right hon. Friend the Chancellor launched a review of our infrastructure financing, which includes that question on whether the UK would benefit from institutional arrangements. We have also made significant funds available to ensure that there is no shortfall for businesses that rely on the EIB.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

T4.   Last month’s Office for National Statistics figures show that life expectancy for the poorest has fallen whereas for the rich, it has increased. Analysis into the key drivers of that, including Public Health England’s investigations, shows that it is the result of cumulative tax and social security changes. I therefore ask the Chancellor, once again, what will he do about that, and particularly, will he stop immediately the benefit freeze that has such a devastating effect on people’s lives?