The Secretary of State for Business and Trade (Kemi Badenoch) With
permission, I would like to make a statement on the UK's trade
performance. When I am overseas, as Secretary of State for Business
and Trade, other countries speak with nothing but admiration and
respect for what we are achieving in Britain. As the chief
executive officer of Nissan Global recently remarked: “It is
surprising to hear people asking why they should choose the UK”—
because, in...Request free trial
The Secretary of State for Business and Trade ()
With permission, I would like to make a statement on the UK's
trade performance.
When I am overseas, as Secretary of State for Business and Trade,
other countries speak with nothing but admiration and respect for
what we are achieving in Britain. As the chief executive officer
of Nissan Global recently remarked:
“It is surprising to hear people asking why they should choose
the UK”—
because, in his words,
“we have both great people and great talent here.”
Certainly, in the firms that I have visited up and down this
country, I am proud to see our employers and exporters firing on
all cylinders. Yet, when I return to Westminster, some people
seem unaware of the progress that we have made as an independent
trading nation. Today, I want to put that right.
The latest trade data, published by the Office for National
Statistics and also by the United Nations Conference on Trade and
Development, should give everyone in this House cause for
celebration and renewed pride in our country. They confirmed that
the strategy the public voted for on 23 June 2016 is delivering.
Leaving the European Union was a vote of confidence in the
project of the United Kingdom, and we are seeing results. Since
that referendum, the UK economy has grown faster than that of
Germany, Italy and Japan, and contrary to gloomy predictions, our
manufacturing productivity has grown more than that of Germany,
France, Italy and the USA.
According to the latest UN statistics, the UK, outside the EU,
became the world's fourth biggest exporter in 2022, overtaking
Japan, the Netherlands and France. The value of UK exports was
£862 billion in the 12 months to February 2024. That builds on
progress we have made in growing our exports outside the confines
of the EU. Exports are now 2% above 2018 when adjusted for
inflation. Services exports are at an all-time high. A summary of
these figures, along with the most recent business and labour
statistics, were published on gov.uk in April. Together, they
definitively disprove the claims of those who prophesied a
catastrophic economic collapse when we left the EU to become a
sovereign nation.
Today, we are selling not only more services to EU countries than
ever before, but record amounts of services to the rest of the
world, too. We are the largest net exporter of financial and
insurance services in the world. Far from an exodus of businesses
out of the UK, European firms have doubled down on their
commitments to the UK. In 2020, Unilever chose to headquarter
exclusively in London over Rotterdam. Since 2022, Cadbury has
brought more chocolate production back to the UK from Germany. In
the same year, Shell moved its
headquarters out of the Netherlands and into the UK.
We are tearing down the barriers to trade. Since the start of
2022, we have resolved barriers all over the world, estimated to
be worth more than £15 billion to UK businesses over a five-year
period. In 2023, this was equivalent to removing around £1
million-worth of trade barriers every single hour. British pork
farmers are benefiting from newly agreed access to the Mexican
market, which is worth £80 million over the same period. Our work
on bottle labelling for UK gin and whisky has driven up exports
to Chile by tonnes. We have ended the US ban on British beef and
lamb.
We are working to deliver a strategy on a situation that faces
the whole world, not just our friends and neighbours in Europe.
This is crucial if we are to lock Britain into the future of
where global growth will be. In 2022, the EU took more than 60%
of UK goods exports. In 2023, this was 47%, because UK goods
exports to the EU remained broadly flat, while exports to non-EU
countries rose by around 70% in real terms.
We are going further to seize the benefits of an independent
trade policy. We have deals with 73 countries around the world,
with more to come under this Government, plus the most
comprehensive trade deal to which the EU has ever agreed. Later
this year, we will join the Comprehensive and Progressive
Agreement for Trans-Pacific Partnership, one of the world's
biggest trading blocs. This will mean that more than 99% of UK
goods will be eligible for zero tariffs in some of the Asia
Pacific's most dynamic economies. British business is set to
benefit.
As well as service exports, where Britain excels, our top goods
sales were in cars, mechanical-powered generators, medicines,
pharmaceutical products and aircraft components. We have one of
the world's largest manufacturing sectors. Productivity in our
manufacturing industry has grown faster than in every other G7
nation since 2010. Hundreds of businesses in steel, chemicals and
other sectors stand to benefit from the newly introduced British
industry supercharger, which is bringing energy costs down for
key industries. Our £4.5 billion advanced manufacturing plan is
opening new markets and removing obstacles to growth while
helping to crowd in new funding for plants and factories
throughout the UK. Every penny the UK Government spend on
manufacturing is matched fivefold by the growth creators of the
private sector. This pro-investment approach is working: the UK's
automotive sector attracted £3.7 billion-worth of greenfield
foreign investment in 2022 alone.
The Labour party will remember Mr Alastair Campbell, who asserted
during the referendum that if we leave the EU, Nissan will leave.
Nissan is still here. The two new 100% electric models are set to
be built at its Sunderland this year. More Minis are rolling off
production lines in Oxfordshire today, thanks to a £600 million
investment from BMW. These are firms that look for opportunities
the world over and decide that the UK is the place to be.
Listening to some of the remarks made in this House and
elsewhere, people would think that our country was not worth
investing in at all. Let us be clear: the British ingenuity and
industry that made this country prosper in the past still exists
today, and even if those on the Opposition Benches cannot see it,
international investors certainly can.
The statistics published by my Department show that the UK's
inward FDI stock has reached more than £2 trillion. Our FDI stock
is the highest in Europe—more than Germany, France and Italy
combined. The most recent OECD data show that our employment rate
is higher than that of the US, France and Italy.
The regulatory freedoms that we gained by leaving the EU have
allowed our smarter regulation programme to cut the red tape that
has been holding them back. We have already reformed the working
time directive reporting requirements, saving businesses up to £1
billion per year. We recently announced that we will raise the
thresholds that determine company size, reducing burdens on
smaller businesses, and remove low-value and overlapping
reporting requirements.
Those changes will make reporting simpler and deliver savings of
around £150 million per year to UK companies, with small and
medium-sized companies benefiting by around £145 million. It is
no surprise that the most recent NatWest SME business activity
index shows that output is increasing strongly, driven by renewed
manufacturing sector expansion, and companies' activity
expectations remain upbeat. These things do not happen by
accident, and I hope that hon. Members on both sides of the House
will welcome those figures.
I have no doubt that this statement will disappoint some people,
as it does not align with the story that they want to tell of a
nation riven by injustice and economic stagnation, clinging to
Europe for any hope for the future. That is not to say that
everything is perfect—of course there is still more to do—but we
are not alone in our problems. Ministers in other countries are
quick to remind me about supply-chain issues affecting everything
from getting car components to stocking supermarket shelves. They
tell me about how they are coping with problems in the jobs
market, as societies from Germany to Japan get older.
Only when I am back in the UK am I told that all these issues are
down to Brexit. Far from it. Our plans are working, and Britain
is thriving as an independent sovereign home of free enterprise
and free trade. That is what the recent figures published by my
Department, by the ONS, and by the UN tell me. It is what our
businesses, exporters, employers and investors all tell me, and I
hope that hon. Members present can see it too. I commend this
statement to the House.
Madam Deputy Speaker (Dame )
I call the shadow Minister.
1.41pm
(Harrow West) (Lab/Co-op)
As usual, I am grateful to the Secretary of State for advance
sight of her statement. I am always pleased to hear any positive
news on trade and investment, but she appears, presumably
inadvertently, to have missed out one or two facts and issues in
her statement.
Under the Conservative party, business has suffered from endless
U-turns and policy changes that undermine investment. There have
been constant changes on policies, from net zero to corporate
governance. The Government's failure to address the big
challenges facing business, such as skills shortages,
infrastructure issues and net zero, have undermined business
confidence. Foreign direct investment figures are down nearly 30%
since 2016-17, according to the Government's own figures. Without
an industrial strategy, and with constant policy uncertainty,
more businesses will not have the confidence to invest in the
UK.
Specifically on trade, British exports in the past decade have
grown slower than those of any other member of the G7 besides
Japan. According to the Office for Budget Responsibility, since
the Secretary of State was appointed, British exports have
dropped and are expected to decline again this year, with at best
anaemic growth in each of the next three years. Ministers have
cut funding to help small businesses get to the international
trade shows that they need to attend in order to find new export
markets, and have cut funding to allow business groups to lead
their own trade missions to win vital new orders for British
business.
Farmers and Conservative members think that the Government's
record on trade negotiations is one of giving away far too much
for far too little in return. Ministers delivered a poor trade
deal with Europe that has put up barriers to trade, raised costs
for businesses and helped to drive up prices, and there is no
sign of any plan to use next year's review of the trade and
co-operation agreement to try to address at least some of those
issues. Then there is the Conservatives' failure to deliver on
the promises in their manifesto at the last general election to
have trade agreements in place with at least 80% of the world,
and to have a trade deal with the United States. The target to
deliver £1 trillion of exports has been moved many times, and
will at best be delivered 15 years late.
Perhaps the right hon. Lady could answer the following questions.
Last week, we heard about the impact that the Government's
constant flip-flopping is having on the automotive sector, with
Stellantis airing serious warnings. What discussions has she had
with the Transport Secretary to try to mitigate the impact of the
Conservative party's chaos? As the devastating news from south
Wales continues to come, we have heard next to nothing from the
Secretary of State on the damage that she has allowed to our
steel industry. Does she still think that spending millions of
pounds of taxpayers' money to make thousands of people redundant
and leave us as the first developed country with no primary
steelmaking capacity was “a great deal”, as she said at the
time?
Given that this House has repeatedly been promised an amazing
trade deal with India, usually by Diwali, will the right hon.
Lady update the House on the state of free trade agreement
negotiations with India? Lastly, given the media reports at the
weekend, which have caused concern, will she update the House on
whether FTA negotiations with the Gulf Co-operation Council are
still ongoing or have stalled?
I thank the hon. Gentleman for his questions. I could see that it
was very difficult for him to find things to pick at in the
statement, so I broadly welcome some of what he said, which
implied that the good news is true.
The hon. Gentleman started with the OBR. He picked that statistic
very selectively. Of course exports fell during covid; exports
overall have grown. Many Opposition Members will say, “Oh, it's
just services.” That is because they do not understand the UK
economy. The UK economy is 80% services, so it is good that
services exports are going up. That is what we mainly do in this
country.
The hon. Gentleman asked about Stellantis, and talked about
U-turns. I remind him that the whole House voted for the net zero
by 2050 target. It happened under a previous Conservative
Government, but with the consent of the whole House. When
business talks, we listen. The Opposition criticised us for
making the changes that Stellantis asked for, so why is he now
raising those comments? The Transport Secretary, the Prime
Minister and I had a discussion—we do have discussions—and we
extended the zero-emission vehicle mandate to ensure that we were
not imposing undue costs on people if they were not ready to take
up electric vehicles. We listen; the Opposition do not. Look at
their plans for net zero. I assure the hon. Gentleman that
businesses are absolutely terrified about what Labour would do
with its new green deal, and all the measures that would just put
costs on businesses and consumers.
The hon. Gentleman asked about steel. I am afraid that I need to
correct several points. We saved jobs in Port Talbot—8,000 jobs
were going to be lost, and we saved 5,000. If we want a net zero
transition, we will have to move to electric arc furnaces, which
require fewer staff. The Opposition cannot blame the Government
for that while demanding a transition to net zero. We saved 5,000
jobs in Port Talbot. We invested £500 million out of a total £2
billion investment made with Tata. It is wrong to say that the
Government are not saving steel; we are the only ones who have a
plan for steel. The Opposition have no plan. We have a great
plan, which will transform and regenerate south Wales.
The other thing that the hon. Gentleman said that was incorrect
was about us having no primary steel production. We still have
British Steel in Scunthorpe. There may be changes in Port Talbot
around moving to electric arc furnaces, but he needs to remember
that even the steel production that we have there relies on
imports. We do not have iron ore here, so I recommend that he
gets a briefing on exactly what is going on with steel production
in the UK.
On India, the hon. Gentleman is right that a deal was promised by
Diwali under a previous Prime Minister, but as soon as I became
Trade Secretary, I said in this House over and over that it is
about the deal, not the day. We do not sign trade deals that will
not make businesses happy. We are keen to ensure that whatever we
do will do right by our farmers. The Opposition laughed when I
paused the FTA discussions with Canada. That was because what the
Canadians were offering was not going to be good. The industry
there is complaining that the UK got too good a deal from the
CPTPP, but the Opposition do not talk about that. We are
negotiating great deals for this country. I am very proud of the
work that my Ministers and my Department are doing. I thank the
hon. Gentleman for his questions.
Sir (Wokingham) (Con)
I am grateful for the statement. It is wonderful news on exports;
it shows that all the pessimism at the time of the referendum was
completely wrong. I fully support the approach of the Secretary
of State in delaying the target for battery vehicles, because
people are not buying them in enough quantities, but will she add
to that by adopting the advice of Stellantis not to fine motor
manufacturers here for producing good petrol and diesel cars
before people are ready to buy electric ones, because that is
putting off investors?
I understand the point that my right hon. Friend makes. This is
something that we have heard from some bodies in industry. The
auto sector is giving us two different messages. Some people want
us to bring the mandate forward and make the change faster;
others want us to delay it. It is a very tricky balance. We
understand the concerns. We do not want to put additional burdens
on business, so he is right to make that point. I have made
representations to the Transport Secretary, but this is his
policy area, and he will make the ultimate decision.
Madam Deputy Speaker (Dame )
I call the SNP spokesperson.
(Kilmarnock and Loudoun)
(SNP)
With these selective statistics, the Secretary of State would
clearly make a good cherry-picker, while clutching at straws at
the same time. The reality is that we still have a cost of living
crisis, and I would welcome her to my constituency to tell people
there how rosy things apparently are in the UK. Real GDP growth
in the UK—growth since before the pandemic—is just 1%. That is
one third of the EU average figure, and one eighth of US
growth.
The here and now figures are even worse. The UK economy shrank in
2023, whereas there was significant growth in the G7 and the OECD
average. Now is probably the only time in living history that the
UK economy has been on a par with Germany's—but sadly that is
because Germany is also an international outlier in lacking
economic growth. Volumes of UK goods imports and exports are 7.4%
smaller than in 2018—the biggest five-year decline for which
comparative records exist.
The Secretary of State is right that exports to the EU are up,
but imports from the EU are also up, so the trading deficit with
the EU has increased by more than 5%. Allianz Trade has estimated
that the introduction yesterday of new customs and checks
procedures on animal and plant products and goods entering the UK
will cost British business £2 billion a year. UK Energy also
estimates that energy bills are £1 billion a year higher due to
post-Brexit trading arrangements.
Instead of talking up the minimal savings from what the Secretary
of State calls “cutting red tape”, I wish she would tell the
truth about the trading cost increases resulting from Brexit red
tape for businesses in the UK, not to mention the impact of
labour shortages. This Parliament is set to break a lot of
records: we have the biggest drop in living standards, the
longest decline in GDP per capita, the steepest five-year decline
in volume of trade, and the stock market shrinking at its fastest
pace in history. Which of these record-breaking achievements for
broken Britain is she most proud of?
It was very interesting to hear the hon. Gentleman talk about his
constituents. What he should tell them—certainly what I would, if
I was there—is that under the seven-year Administration of First
Minister , the SNP welfare economy
grew at half the growth rate of England's economy. If the SNP had
achieved growth in line with England, it could have increased
Scotland's economy by £15 billion. Instead, that welfare economy
means no growth, because of Scotland having the highest income
tax rates in the UK, and higher wages in the public sector than
in the private sector. The SNP's policies are not helping.
The hon. Gentleman asks questions—[Interruption.] He does not
want to hear the facts, but I will give him the facts. He talks
about the real, pre-pandemic GDP figure. Of course the pandemic
had an impact; we cannot stand here and pretend that it did not.
Even the statistics I am quoting showed that covid had a far
bigger impact than leaving the EU ever will, just as Russia's war
in Ukraine will have a far bigger impact than leaving the EU. He
talks about international outliers, which shows that he is the
one who is cherry-picking. We have to look at our peer countries,
because we will not grow as quickly as developing countries. It
is astonishing that he is also complaining that imports from the
EU are up. That shows that, despite our leaving the European
Union, trade is doing well and things are going well. If his
Scottish Government took some lessons from the UK Government,
they would see much better things happening for their
constituents.
(Bolton North East) (Con)
I welcome the Secretary of State's statement, and especially the
fact that Japan was mentioned on, I think, five or six occasions.
The latest statistics show there has been a £777 million increase
in total trade between our two countries, which works out at an
increase of 2.9%. I would also welcome her to an event that we
are hosting with Baker McKenzie in the first week of June,
launching Baker McKenzie's UK Japan Connect, which seeks to
foster business and trade between our countries.
I thank my hon. Friend for the question; I will check my diary to
see if I am available for the event, but I am glad that he raises
the issue of trade with Japan. We signed an upgraded FTA with
Japan after leaving the EU, so these roll-over deals are no
longer roll-over deals, because we are adding more into them,
especially the digital trade chapters. These are deals fit for
the 21st century—the age we live in—rather than the 20th
century.
Madam Deputy Speaker (Dame )
I call the Chair of the Business and Trade Committee.
(Birmingham, Hodge Hill)
(Lab)
It is good to see the Secretary of State in the House again. I
know she has a difference of opinion sometimes with the Office
for Budget Responsibility, but can she confirm that the OBR's
figures for March 2024 show that the UK has the lowest trade
intensity in the G7? There was important progress, as she has
reported today, but much of it rests on progress in our services
trade, which provokes the question of why we are not pursuing
services-only trade agreements in a more expansive way, not least
as the Minister for Trade Policy was unable to confirm whether
any comprehensive free trade deals would be signed before the
election when he came before the Committee yesterday. He said
that services-only deals were not allowed under World Trade
Organisation rules, which of course is flat-out wrong.
The question I want to put to the Secretary of State is about our
goods trade. The Office for National Statistics figures show that
our goods exports have fallen by about £31 billion over a year.
The risk is that that number will be hit even harder by the chaos
at the border. The new border operating model involves data that
is submitted by traders, but then not shared with ports;
sometimes two hours' notice is needed for a journey that only
takes 90 minutes; there is no standardisation of inspection
charges; and British Chambers of Commerce says that many
businesses will be hit by thousands of pounds-worth of customs
bills that they did not know they were on the hook for.
The question is this: did the Secretary of State warn her
colleagues in Cabinet that there would be complete chaos, and
that the EU checks that we are introducing would be a disaster?
That is what small business is saying to me, and I know it is
what small business is saying to her.
I thank the right hon. Gentleman for his questions. He asks why
we are not pursuing services-only deals. We have done two of
those: one with Singapore and one with Ukraine about digital
trade exclusively. However, it is an area where we need both
sides to agree, and most countries still want a goods deal; for
many of the countries that we are negotiating with, goods are
still the larger part of their economy. We have to bear that in
mind, because trade deals are not a one-way story.
I am glad that the right hon. Gentleman welcomes my statement. He
will of course know that I am not somebody who pretends that
everything is perfect and nothing could be better. I do think
things could be improved, but one thing we have to acknowledge,
in reference to his comments about the border operating model, is
that the people voted to leave the European Union. There will be
opportunities and there will be costs. Farmers regularly tell us
that they want better food standard checks and other checks at
the border. That will impose a cost. We have done everything we
can to minimise those costs—we have even found cost savings in
doing so. I have heard many scare stories about what businesses
will see at the border, but not all of them will apply. We are
doing everything we can to minimise the burden, but the fact is
that the EU imposed the same measures on the other side, and we
need to give our producers a level playing field.
(Hertford and Stortford)
(Con)
It is a pleasure to follow the Chairman of the Business and Trade
Committee. I am a relatively new member of the Committee; I
joined this year. I recall my first meeting, at which we heard
that the UK has had the third-highest foreign direct investment
over the past years; we are behind only the US and China. This
week, at our meeting with the Minister for Trade Policy, we heard
about our trade deals with over 70 countries, including the
landmark CPTPP. Does my right hon. Friend the Secretary of State
agree that that track record of success contrasts starkly with
Labour's track record? Under Labour, the UK's share of global
trade declined. Does she agree that, just perhaps, aside from the
Chairman of the Select Committee, there is not a single Labour
Back Bencher in the Chamber who wants to hear about that track
record of success, because they do not have a leg to stand
on?
I thank my hon. Friend for the question. She is right, and I am
sure that the hon. Member for Harrow West (), who was a Labour Trade
Minister, could verify those figures about our trade
dropping.
indicated dissent.
He is shaking his head. In answer to my hon. Friend's question,
we were often told that we would never be able to get those 73
trade deals—we were mocked—and that nobody would sign any deals
with the UK that were like what we had in the EU. We got 73 done,
and many of them we have actually improved on. We in this House
must remind people that we have done much good; they may forget.
People live in the moment, and we have to remind them of our
record—and this is a record we should be proud of.
(South Antrim) (DUP)
As much as we welcome the good figures that have been produced,
Northern Ireland still suffers from not having full access to the
trade deals that the United Kingdom has struck throughout the
world with 70 countries. What measures would ensure that we can
take advantage of those deals and get rid of the injustice of the
protocol and the difficulties that it causes businesses in
Northern Ireland?
We have been doing a lot in Northern Ireland to increase
investment and make up for any shortfall, whether through our
trade deals or otherwise. The Windsor framework, for example, is
one thing that the Prime Minister has worked on to iron out some
of those issues. We are looking at where Northern Ireland can
exploit the benefits of being part of both the EU single market
and the UK single market, which is a unique position. We know
that there are some areas in which things are not exactly the
same as in GB, but we can look individually in specific trade
deals at what we can do. In services, for example, that should
not be an issue; we really see the difference in goods. We can do
a lot more and we continue to work on that.
Sir (New Forest East) (Con)
Does the Secretary of State agree that, if we cast our minds back
to the time of covid, when we were spending hundreds of billions
of pounds just to keep the country functioning, none of us could
have imagined sets of statistics as positive as those that she
has given us? May I re-emphasise a point that has already been
made in slightly different terms? There appear to be eight times
as many people sitting on the Conservative Front Bench as there
are on the entirety of the Labour Back Benches. Does she take
that as a vote of confidence in the Government's positive
message?
My right hon. Friend is absolutely right. It is clear that Labour
does not like good news. As soon as there is any, Labour Members
exit the Chamber unless they absolutely have to be here. It is
disgraceful that there is not a single Back-Bench Labour Member,
other than the Chair of the Business and Trade Committee, the
right hon. Member for Birmingham, Hodge Hill (). The shadow Minister, the hon.
Member for Bethnal Green and Bow (), is blushing because she
knows that it is true. That is one reason why it is important for
us not to assume that people see these statistics. If we do not
talk about them, nobody else will. Enough people out
there—certainly on the Labour Benches—will tell us how terrible
everything is, but we need to remind people about the good that
is happening.
(Bath) (LD)
In complete contrast to the rosy picture that the Government are
trying to paint, there are some inconvenient truths that have
been left out. From this week, new checks on food imports from
the EU will see costs for importers rise by 60%, which will have
a severe impact on small businesses and consumers alike. Will the
Secretary of State take this opportunity to lay out how consumers
and small businesses will be protected from those severe new
costs?
I seem to remember a time when some Liberal Democrats were
complaining that we did not have any checks at the border, and
that that showed that standards in this country were low. If we
do something, they immediately make the opposite argument—there
is no consistency whatsoever. I explained in response to an
earlier question why we are doing this and how it is of benefit.
It is about maintaining standards. The other thing that the hon.
Lady should realise is that we have been able to reduce tariffs
on loads of products—thousands of products—from across the world,
which also helps to reduce prices and tackle inflation.
(Stafford) (Con)
I welcome this statement on the Government's progress on business
and trade. It is fantastic news to hear that the UK has been the
fourth biggest exporter in the world. As the Prime Minister's
trade envoy to Kenya, I have been meeting British businesses
regularly to better understand how the Government can help them
to export to that key market. During my most recent visit to
Nairobi, I have been focused on delivering the UK's flagship
projects, including Nairobi Railway City and the High Grand Falls
dam. Will my right hon. Friend continue to remove barriers for
British businesses to ensure that they can grow their exports to
key markets such as Kenya?
First, I thank my hon. Friend for all her work as the Prime
Minister's trade envoy to Kenya. She will know that officials
have been engaging with their Kenyan counterparts to progress
work on market access barriers, including working closely with UK
industry and Kenya's Anti-Counterfeit Authority to address the
issues facing British exporters. We are doing a lot of work to
deepen collaboration between the UK and Kenya, which wants our
expertise, especially in important sectors such as healthcare and
financial services. I hope that I will be able to work further
with my hon. Friend to deliver more trade between the two
countries.
(Strangford) (DUP)
I thank the Secretary of State very much for her positivity,
which is encouraging for the House, for the country and for this
United Kingdom of Great Britain and Northern Ireland, and I ask
this question constructively. Figures have shown that from 2021
to 2023 there was a slight decrease in the number of new jobs
created in the United Kingdom. What discussions has she had with
the Department for the Economy, and the NI Assembly, about
Northern Ireland's contribution to creating new employment in
2024-25, so that the figures can remain on the increase, as they
did in the years prior to 2021?
I think the point that the hon. Gentleman is making is that we
cannot be complacent about what is happening in either country.
Even as we talk about good news, we need to continue working to
ensure that those things do not disappear. He is right that we
should do as much as we can with the Department for the Economy.
Now that a Minister is in place, it will be a lot easier for us
to co-ordinate and see how we can work together to increase
employment and improve wages and productivity in both
regions.
(Cleethorpes) (Con)
I welcome the Secretary of State's statement. It was particularly
encouraging to hear the news about the manufacturing sector.
However, as she will be aware, if growth in that sector is to be
maintained, continued Government support will be needed. Will it
be forthcoming?
We have put in place a £4.5 billion advanced manufacturing plan
for the manufacturing sector. Firms will need to ensure that they
qualify for that funding. We are also doing what we can to bring
in investment—especially foreign investment—which will help to
drive productivity. It is good to see that business and investors
globally want to invest all across the UK, not just in London,
and not just in financial services but in manufacturing,
certainly, and in our green industries of offshore and
renewables. There is so much that we can do that will create
industries and companies fit for the future.
(Aylesbury) (Con)
I congratulate my right hon. Friend on ensuring that these superb
trade figures are brought to the attention of Parliament. Trade
between the UK and Morocco has grown consistently since the entry
into force of the UK-Morocco association agreement just last
month. A UK consortium won the tender to design the Casablanca
stadium for the 2030 World cup, which will be the second largest
stadium in the world by seating capacity. Does she agree that it
is thanks to Brexit that we can forge such one-to-one trade
agreements that are of real benefit to British businesses, and
does she share my view, as the Prime Minister's trade envoy to
Morocco, that we should continue to prioritise work with Morocco,
which is a dynamic and growing trade partner?
My hon. Friend is absolutely right. We should continue to
prioritise trade with Morocco and countries like it. I remember
that when we had a tomato shortage in western Europe, Morocco was
one of the countries that had cheaper supplies, and we can drop
tariffs on such products when shortages are affecting all of
western Europe, not just the UK. So much flexibility comes of
being able to have our own independent trade policy. I pay
tribute to him for his work as trade envoy to Morocco, as I
should have done to my hon. Friend the Member for Cleethorpes
() for his work as trade envoy
to the western Balkans. There are so many trade envoys in the
Chamber today, and I am grateful for all their work to support
our Department and deliver the good news stories that we are
talking about today.
(Great Grimsby) (Con)
I welcome my right hon. Friend's statement, particularly with
regards to growth in manufacturing and exporting. Great Grimsby
has a huge amount of opportunity in carbon capture and storage,
as well as in our UK seafood processing industry, which is the
biggest such cluster in the country. Does she attribute some of
the developing growth to UK freeports, one of which is in
Grimsby? I look forward to welcoming her very soon.
Yes, freeports are another policy that has come about from our
ability to leave the European Union. We are doing everything we
can to bring in that investment. Carbon capture and storage is
one area in which we think the UK can lead. We have the expertise
and a lot of the talent and skills. Many of the people who want
to understand that technology are coming to the UK. I hope that
we can do more for my hon. Friend and her constituents in Great
Grimsby, and I will look into what we can do to ensure that I or
another Minister comes to see the good work taking place
there.
Dr (Vale of Clwyd) (Con)
I hugely welcome the upbeat nature of this statement and the
Secretary of State's reference to Britain joining CPTPP.
Snowdonia Cheese, which is based in my constituency, also looks
forward to the UK's accession to CPTPP and the generous,
tariff-free access to the Canadian and Mexican markets that it
will bring. It is understood that that access may be available as
soon as later this year, so would my right hon. Friend kindly ask
one of her officials to get in touch with that company to keep it
updated on progress?
I am very happy to do so. My hon. Friend is right that our
accession to CPTPP is carrying on: as he knows, we have ratified
the Bill in Parliament, and three of the CPTPP countries have
completed their own processes—there are only a handful to go—so I
do think this is something that will be possible. I will arrange
for officials to meet representatives of the business in my hon.
Friend's constituency to have that conversation.
(North East Bedfordshire)
(Con)
We are in the Chamber to talk about the progress of British
business, so it is telling that Labour MPs have not bothered to
show up. If today's Financial Times is to be believed, that is
because they are desperately trying to find businesses to talk
about the latest reversal of Labour party policy, which is on
Labour's very damaging approach to the labour market. Its
approach would place additional laws on business that would
stifle enterprise and hand out more bungs to its paymasters in
the trade unions, so does my right hon. Friend agree that the
right way to back British business is to get the right
regulation, not the stifling legislation that the Labour party
would put in place?
I absolutely agree with my hon. Friend. We are doing so much to
get our regulatory environment right, and I thank my hon. Friend
for all the work he has done in this area. I know it is something
that he cares about, and I thank him for many of the suggestions
and much of the advice that he has provided to me.
The right regulatory environment can and will deliver growth. I
am terrified by some of the things that I see the Labour party
putting forward, and businesses do not like them either. Those
flexible rights from day one would mean that if a business
employs someone and they do not turn up to work on their first
day, that business could not sack them, which would be a
disaster. We have done so much on labour rights, but it is not
the area that is going to deliver growth, certainly not with the
policies that Labour is putting forward.
(Stoke-on-Trent North)
(Con)
I warmly welcome the Secretary of State's statement, particularly
when it comes to manufacturing and exports. I thank her
personally for the time she took yesterday to meet Johnson Tiles,
Churchill China and Steelite—great manufacturers of ceramics in
Stoke-on-Trent North, Kidsgrove and Talke—as well as , the chief executive officer of Ceramics UK. Despite
what has been a very challenging time for the industry,
particularly due to the rise in energy prices sparked by Vladimir
Putin's illegal and immoral war in Ukraine, can the Secretary of
State assure me that the ceramics industry will be able to take
part fully and play a big role in ensuring that we export the
very best of Britain around the world, particularly through
future free trade agreements with countries such as India?
Yes, that is right. With our FTAs, we are trying to ensure that
we deliver for businesses; if businesses are not happy, those
FTAs will not work. The FTAs are going to be used by businesses,
not by politicians—it is not about the photos that are taken.
I thank my hon. Friend for the meeting he organised yesterday
with representatives of the ceramics industry and ceramics
producers in his constituency. We understand the difficulties
that they face, with energy costs having risen following the war
in Ukraine, and we are doing everything we can; I talked about
the supercharger, which should help to deliver for those who are
electricity users. We understand the changes and burdens that net
zero is placing on those businesses, and are doing everything we
can to mitigate them as we try to deliver that target.
(Penistone and Stocksbridge)
(Con)
Like all of my colleagues, I warmly welcome my right hon.
Friend's statement, and very much welcome her focus on the
balance of trade. We do not talk enough about that; we forget
that until 1997, this country had a broadly neutral or positive
balance of trade, but between 1997 and 2010, that balance went
very negative. We have struggled to restore that balance, which
has made us dependent on foreign debt and our economy fragile, so
I very much welcome these figures—it looks like we are turning
the tide.
I also welcome my right hon. Friend's focus on manufacturing,
which has a very important part to play in our balance of trade,
but we must not forget about the small manufacturers. She has
rightly focused on the larger ones, but nearly 6,000 jobs in my
constituency are dependent on export. What help is available from
the Government to help smaller manufacturers, which often face
more barriers to exporting, to also be part of this excellent
recovery?
My hon. Friend makes a very good point. Through our export
strategy, we are doing a lot to provide support for businesses
that may not be familiar with exporting or that need additional
help. We do that work with our trade commissioners in every
region around the world, as well as with international posts.
One thing we have said in the Department for Business and Trade
is that this is the year of the small and medium-sized
enterprise. Quite a lot of the time, the news that we give is
about the big billions for the FTSE 100 companies, but most
people who work in this country work for small and medium-sized
businesses. That is one reason why we want to reduce the
threshold at which they count for the purposes of corporate
reporting and regulations, which should make their lives easier
and give them fewer barriers to trade. It will help them to
improve their exports, as well.
|
