Oral Answers to Questions

Sarah Jones Excerpts

Thursday 31st October 2024 Commons Chamber

[Joe Morris (Hexham) (Lab)]

4. What recent progress he has made on developing a new industrial strategy.

[The Minister for Industry (Sarah Jones)]

We have made significant progress in developing a new industrial strategy and I am delighted to report to the House that we published a Green Paper on 14 October, setting out our plans for a modern industrial strategy. We have set our sights higher than the previous Government, we have thrown off their ideological shackles and we have worked in partnership with business and our colleagues across the nations and regions to set us on a path to a credible 10-year plan, delivering the certainty, drive and ambition that businesses need to invest in the UK.

[Joe Morris]

For 14 years, businesses in rural communities such as my constituency were ignored and neglected by the Conservatives in government. Will the Minister elaborate on how the industrial strategy will allow rural communities to share in the proceeds of growth?

[Sarah Jones]

The difference between a Labour Government and a Conservative Government is that we believe that growth needs to be felt in our communities, not just measured on a spreadsheet. I know that my hon. Friend is working hard in his constituency and is already campaigning on issues such as banking services, which are so important for our rural communities. He is right: the industrial strategy needs to be designed and implemented in lockstep with local leaders, mayors and devolved leaders across the country, alongside our wider plans for housing and skills, which of course will be part of the picture. I look forward to working with him on identifying the barriers to growth in rural communities so that we can break them down.

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

The development of marine renewable energy is getting close to commercial deployment. If we are able to get it across the line, it will bring with it a supply chain that we can build and hold in this country, with a view to exports across the world. That would surely be a great result for any industrial strategy. What will the Government do to ensure that their industrial strategy helps marine renewables reach full commercial deployment?

[Sarah Jones]

The right hon. Gentleman makes a really good point, and I would be happy to have a proper conversation with him about it. Marine renewables are a huge opportunity for us. We can build the supply chains across the country and, of course, Scotland is uniquely placed to take advantage of that. I would love to have a conversation about it.

[Greg Smith (Mid Buckinghamshire) (Con)]

When it comes to an industrial strategy, in the Labour Government’s first few months they have effectively shut down UK virgin steelmaking capacity, with no commitments to primary steel in yesterday’s Budget of broken promises. Unlike the United States and the European Union, the Government have failed to protect our car manufacturers against Chinese state aid. They have massively increased the costs to the very drivers of industry—real businesses—of employing people. Should the Government not call it their deindustrialisation strategy?

[Sarah Jones]

The challenge we have is that we have inherited the worst living standards growth during a Parliament in modern history. We have inherited huge challenges that we have to overcome, but we are looking to the long-term with our industrial strategy—[Interruption.]

[Mr Speaker]

Order. I do not need any more. Do we understand each other?

[Sarah Jones]

I do not know whether the hon. Member for Mid Buckinghamshire (Greg Smith) has been paying attention, but we are developing a steel strategy, which the previous Government failed to do, with £2.5 billion of funding. We put a boost of £2 billion into our car industry only yesterday in the Budget, alongside £1 billion for the automotive sector and money for life sciences. We are developing an industrial strategy for the long term for the first time and we will not follow the Conservative party, which let our industries suffer and get to the crisis point that we are now having to deal with.

[Greg Smith]

The Minister mentions the car industry. Yesterday, after the Budget of broken promises, talking about the industrial strategy, Mike Hawes of the Society of Motor Manufacturers and Traders said:

“Delivering that strategy depends on the UK being globally competitive. Additional National Insurance Contributions will put massive pressure on the automotive supply chain which is predominantly SMEs.”

He described the lack of substantive measures to support the new car market as “hugely disappointing”, concluding that,

“the cost will soon be felt in reduced UK investment, economic growth and jobs.”

With such dire warnings so early on, is this not more evidence that Labour just does not get business and that its industrial strategy is in tatters before it has even begun?

[Sarah Jones]

For a Government who do not get business, it is surprising, is it not, that we got £63 billion of investment through the international investment summit—twice what the previous Government managed after two years of planning it? The Government are working very closely with the automotive industry. We know that the global situation is very difficult and I talk to Mike Hawes very often, which is why we put £2 billion of funding into the Budget yesterday. It is also why we are working very closely with the sector to create the conditions we need to transition to electric vehicles and to protect our industry in a way that the previous Government, frankly, failed to do.

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

5. What recent steps he has taken to help prevent e-bike battery fires.

--- Later in debate ---

[The Minister for Industry (Sarah Jones)]

We held, as we have said, an international investment summit on 14 October, 100 days after we formed the new Government. We secured £63 billion of investment, which is twice the level of the previous Government’s investment summit. The investment will create high-quality, high-skilled, well-paid jobs across the country, and represents a huge vote of confidence in this new Government.

[Bill Esterson]

As my hon. Friend quite rightly said, the Labour party is now the party of business without any question. Does she agree that the measures committed to in yesterday’s Budget on clean energy, carbon capture and storage and hydrogen—which were backed up, by the way, with a commitment from a Canadian investor of another £1.8 billion in offshore wind—show how much this Government are in tune with the business community? We are attracting investment and building on the investment summit, and we will deliver jobs for our constituents and our communities up and down the country.

[Sarah Jones]

I agree wholeheartedly with my hon. Friend. I also agree with the former Chancellor, Kwasi Kwarteng, in his article yesterday. I quote:

“Conservatives, like myself, should be honest”

and

“Reeves is cleaning up our mess”.

[Mr Paul Kohler (Wimbledon) (LD) [R]]

9. What steps he is taking to support the night-time economy. [R]

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[Bell Ribeiro-Addy (Clapham and Brixton Hill) (Lab)]

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

[The Minister for Industry (Sarah Jones)]

In little more than 100 days in government, this Department and its Secretary of State, who is flying to Doha today, have set about delivering on the promises made in our manifesto. We have turned up the dial on growth and published our Green Paper on the modern industrial strategy, which will channel support to key sectors, work across our nations and regions with the private sector, and deliver the conditions for investment and good jobs. We have delivered a huge vote of confidence in the UK by securing £63 billion of investment at our international investment summit, boosted by investment ploughing into our aerospace, automotive and life sciences sectors, as announced in yesterday’s Budget. We have also kept our promises by publishing the Employment Rights Bill, which represents the biggest upgrade in workers’ rights in a generation. We are a pro-innovation, pro-worker and pro-wealth creation Government, and are investing all our time in growing the economy for the long term and turning round 14 years of failure.

[Bell Ribeiro-Addy]

A four-day week with no loss of pay has proven to have benefits for employers and employees alike, and a recent report by the Autonomy Institute and Alda suggests that it can have a hugely positive impact on the economy. The report concludes that Iceland’s economy has outperformed most of Europe since adopting a shorter working week, and now has one of the lowest unemployment rates. With even more UK businesses beginning a four-day week trial on Monday as part of the 4 Day Week Campaign’s autumn pilot, what assessment has the Department made of the Icelandic report and of the potential impact that a four-day week could have on UK businesses and our economy?

[Sarah Jones]

The Government have no plans to undertake any trials on a four-day week for five days of pay. It is for employers and employees to reach agreements that fit their specific circumstances, but we want to get the balance right and make sure that we work with employers and employees. That is why the Employment Rights Bill will support both parties to reach agreements, where they are feasible.

[Mr Speaker]

I call the shadow Secretary of State.

[Sarah Jones]

The hon. Gentleman oversaw the worst Parliament for living standards in modern history. We did not choose that inheritance, and we have made choices. Would he rather we did not compensate for the infected blood scandal? Would he rather we did not compensate the Horizon victims, for whom there was no money in the Budget, on his watch? Would he rather we did not invest in the health service? Would he rather we did not increase the minimum wage? Would he rather we did not support carers? Would he rather we made the choices that he made, such as cutting national insurance for workers when there was no budget for that? This Government are fixing the foundations, so that we can have a bright future for all our country.

[Kevin Hollinrake]

The Government’s choice was to hit businesses, and that is because there is not an ounce of business experience among them. Labour’s death taxes will hit farms and businesses. Families with a typical farm will have to find hundreds of thousands of pounds or see their farms broken up and sold. The Environment Secretary said 10 months ago that he had no intentions of putting death taxes on businesses. That was a broken promise, was it not?

[Sarah Jones]

I will not take any lectures from the Opposition, who said “eff business”. Conservative Members have some cheek to come at us when we are clearing up the £22 billion black hole that we inherited, and setting in train stability. I spent quite a lot of yesterday, as the hon. Gentleman would expect, talking to and having meetings with businesses about the Budget and its implications. We talked about the potential for growth, long-term stability, and changes that this Labour Government are making.

[Steve Witherden (Montgomeryshire and Glyndŵr) (Lab)]

T3. A study published by the Disability Policy Centre this week suggests that improving support to get disabled people, those with long-term health conditions and unpaid carers into work, and keeping them in employment, could save the Treasury £38 billion. Paying a higher rate of sick pay has been shown to increase employee retention and is key to reducing economic inactivity. What assessment has the Minister made of the impact of the current rate of statutory sick pay on employee retention?

--- Later in debate ---

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

Although yesterday’s announcements may dampen businesses’ expansion plans, many businesses in my constituency and elsewhere find it difficult to expand because of national grid connections. What are Ministers doing to engage with the Department for Energy Security and Net Zero and National Grid to ensure that connections are available?

[Sarah Jones]

I am glad that the hon. Gentleman asks what we are doing to engage with the Department for Energy Security and Net Zero, because I sit across that Department and the Department for Business and Trade. The entire point of my role is to make sure that we join up the two Departments, so that we can crack some of these problems. The grid is No. 1 on our list.

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

T5. I warmly welcome the £10 billion investment in a data centre in Cambois in my constituency, but I share the concerns of many residents who believe that it is fast becoming a plug-in centre for huge infrastructure programmes. Does my hon. Friend agree that when we have huge infrastructure programmes in certain constituencies, residents should benefit from local jobs and community facilities?

[Sarah Jones]

I agree with my hon. Friend. It is essential that local communities see the benefits of landmark investments. I am pleased that Blackstone is investing £110 million in a fund to support local skills training and transport infrastructure. I am happy to have a conversation with my hon. Friend about what more can be done.

[David Mundell (Dumfriesshire, Clydesdale and Tweeddale) (Con)]

Farming and agricultural businesses employ thousands of people in my constituency, and they make a huge contribution to the local economy. Can the Minister set out exactly how yesterday’s Budget will help them to develop and grow?

[Becky Gittins (Clwyd East) (Lab)]

T6. Business owners in Clwyd East, in north Wales, want a Government who are serious about getting long-term, sustainable jobs into our economy—a process that we started yesterday. Our unique geography sees us lead on wind power and carbon capture, and we have a proud manufacturing base, which is already benefiting from our two Governments working together, and from a long-term sustainable plan for the future. Will the Minister work with me to ensure that businesses are well placed to invest in north Wales, both now and in the future?

[Sarah Jones]

Yes, I will work with my hon. Friend. We are delighted with the £1 billion investment secured to transform the Shotton mill site. I think that a Labour Government in Westminster and a Labour Government in Wales can work together to deliver great things.

[Josh Babarinde (Eastbourne) (LD)]

Some 29% of jobs in Eastbourne, the sunniest town in the UK, are connected to the hospitality sector, but many businesses in that sector have expressed concerns about yesterday’s Budget, which UK Hospitality has described as the “latest blow for hospitality”. Will the Minister meet me and local hospitality businesses to discuss those concerns? I declare an interest as the patron of the Eastbourne Hospitality Association.

--- Later in debate ---

[Lincoln Jopp (Spelthorne) (Con)]

We have an anomalous situation in Spelthorne whereby people can use an oyster card to pay for six different red buses, but not the train. That is crippling small businesses and people going into London. Will Ministers in the Department use their combined might to lobby on my behalf and get me a meeting with the Minister for Rail, so that we can get Spelthorne into the correct zone?

[Sarah Jones]

I admire the hon. Gentleman’s ability to shoehorn in a question on a subject that is not in the Department for Business and Trade’s remit, but we are of course happy to help with his endeavours to talk to Ministers in the Department for Transport.

[Marsha De Cordova (Battersea) (Lab)]

T8.   The all-party parliamentary group on eye health and visual impairment, which I chair, recently published its report, “Changing Attitudes, Changing Lives”, looking at employer attitudes towards blind and partially sighted people. We found that nearly half of employers do not have accessible recruitment processes, which means that they miss out on a wealth of talent. Will the Minister meet me to discuss how we can create a step change in employer attitudes towards blind and partially sighted people?

--- Later in debate ---

[Kit Malthouse (North West Hampshire) (Con)]

We should all welcome the work of both Governments that resulted in the announcement of £63 billion of inward investment into the UK. However, since then, as a number of Members have pointed out, we have had significant new regulation in the labour market and massive new taxes on businesses. If any of those investors now change their minds, will the Secretary of State come to the House and inform us, please?

[Sarah Jones]

We will of course keep the House updated on the results of the investment summit, but the £63 billion, as I said earlier, was a massive show of confidence in this new Government.

[Torcuil Crichton (Na h-Eileanan an Iar) (Lab)]

I am grateful to the Minister and the Secretary of State for the work that they have put in to secure a future for the Harland & Wolff yard at Arnish in my constituency, and indeed at Methil, Appledore and Belfast. I understand that talks are commercially sensitive, but, as workers are anxious about their future, can the Minister update us on how the talks are going?

[Sarah Jones]

I thank my hon. Friend for his question and for the work that he is doing to represent his community. We are working extensively with all parties to find an outcome for Harland & Wolff that delivers shipbuilding and manufacturing in Belfast, Scotland and Appledore in Devon. I cannot comment further, as he says, due to commercial sensitivities, but we are working extensively with everyone to get the right deal.

[Chris Law (Dundee Central) (SNP)]

The International Court of Justice judgment from 19 July this year ruled that it is the duty of third-party states not to aid or assist Israel’s “unlawful occupation” of Palestinian territory. In the light of this, will the Minister tell us whether the Department for Business and Trade has obtained legal advice, or whether it is in the process of doing so, on the legality of the UK’s existing trade relations with Israel, and if it has, will he share it with the House, please?

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

Will the Minister meet me to discuss how the Government could further develop an industrial strategy to bring up to 10,000 jobs in the offshore wind supply chain over the next 10 years?

[Sarah Jones]

I would be delighted to meet my hon. Friend often and regularly, as we do, to talk about these matters. Of course, the offshore wind supply chain is incredibly important. We have two big announcements to that end, which she mentioned, in relation to Orsted and Greenvolt, and there is much more that we can do through the industrial strategy to keep that area growing.

[Jim Shannon (Strangford) (DUP)]

What discussions have there been with Invest NI in relation to supporting small Northern Ireland businesses in the digital evolution, to help them adapt and make improvements with digital technology to ensure the smooth running of their businesses?

--- Later in debate ---

[Sarah Jones]

Yes, indeed. I can reassure my hon. Friend that, on this Front Bench, there are Members, including me, who do have private sector experience, and who have run businesses. Of course we have had very strong relationships with businesses, both in the run-up to the election and now, and we will continue to build on those strong relationships for the benefit of all the people across our country.