UK Modern Industrial Strategy

Sarah Olney Excerpts

Monday 23rd June 2025 Commons Chamber

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the Liberal Democrat spokesperson.

[Sarah Olney (Richmond Park) (LD)]

The Liberal Democrats have long been champions of the industrial strategy. We are proud that the strategy we introduced in government set out the Green Investment Bank, the British Business Bank and the regional growth fund, and we strongly opposed the Conservative Government’s damaging decision to scrap our country’s industrial plan. We therefore welcome the re-establishment of the industrial strategy and the fact that it focuses on many of the sectors we prioritised in government, including life sciences, professional services and clean energy.

On energy, measures to bring down some of the highest industrial prices in the world will be welcome news for our manufacturers and energy-intensive firms, but we cannot forget that businesses across our entire economy struggle with high energy prices, not least our hospitality businesses and small and medium-sized enterprises. What steps is the Secretary of State taking to ensure that small businesses across sectors have access to better energy deals? Will he look to bring forward the industrial competitiveness scheme from its current two-year horizon?

On skills, while today’s announcement comes with a welcome funding boost, it stops well short of the fundamental reform that we need, so will the Secretary of State accelerate the reform of apprenticeships and empower Skills England to act as a properly independent body with employers at its heart? One key omission from the strategy is our world-leading agrifood industry, which has been relegated from being a priority sector to receiving only a handful of mentions in the entire document. I hope that the Secretary of State will admit that our farmers and rural communities deserve far better. On trade, if the Government are truly serious about backing British business and going for growth, will they show more ambition on trade with Europe and look to negotiate a new UK-EU customs union, which could put rocket boosters under UK plc?

In the extra time that you have kindly granted me, Madam Deputy Speaker, I want to ask the Secretary of State about access to finance and about addressing inequalities in particular. As chairman of the all-party parliamentary group on ethnic minority business owners, I have seen for myself the data on how much more difficult it is for those businesses to access finance, and similar data exists for women entrepreneurs. Addressing those inequalities would add a great deal to growth. Finally, when will we see more details about the National Wealth Fund?

[Jonathan Reynolds]

I warmly welcome the hon. Lady’s support. That section of the Liberal Democrat manifesto was very well written, whoever was responsible for it. There was much that we can all get behind, and it very much made the case.

The hon. Lady is right to say that the Liberal Democrats in government supported the approach we are taking. By the way, I have talked to nearly every one of my living predecessors across the political divide—not all of them, but the ones who have done this kind of work and made a difference. There are some new things in the sectors that we have picked. The creative industries are a brilliant economic, soft power and cultural strength of this country, so it is great to see them included.

On the timescale for energy policy changes, I know that the people who recognise the burden want to see action quickly. I want to see action as quickly as possible. I can make changes to the supercharger scheme and the generosity of it more quickly because it is an existing scheme and the intensity threshold is already in place, but the industrial competitiveness scheme will require legislation to implement it, and that will take more time, depending on how co-operative colleagues are across the House.

I welcome what the hon. Lady said on skills. Skills will always be the No. 1 issue that any business raises with its Member of Parliament. I recognise the case she makes about a fundamental reform. Since the apprenticeship levy was introduced, employer investment in skills has gone down, and that is not what any of us want to see. We will ask Skills England and the industrial strategy council to work more closely on what businesses need to invest in more, and we will ask them to report by the Budget to see whether we can take forward a more comprehensive set of changes. The Department for Education owns that part of the policy, of course, but this is a cross-Government industrial strategy, as it should be. On agrifood, it is a subsector of advanced manufacturing, so the hon. Lady should not worry, because it is included.

The only item of disagreement is trade. I would say that this Government are managing the pressures of international trade better than any other country in the world. The customs union that the hon. Lady proposes would mean that we could not have the trade deal with India, which has brought down tariffs on salmon, Scotch whisky and automotive vehicles. It would mean that we could not have the agreement with the US, which has saved tens of thousands of jobs, so I cannot agree with her on that point. I think we should have closer trade with Europe, the US and the rest of the world.

Finally, I thoroughly agree with the hon. Lady on access to finance, and I appreciate that point. This is a core business and economic issue for the UK, not a minor issue. The level of finance that is going to female entrepreneurs, for instance, is not sufficient. We have already explicitly backed some significant campaigns through the British Business Bank and I stand ready to do more. I recognise the important case she makes.