PARLIAMENTARY DEBATE
Topical Questions - 17 July 2025 (Commons/Commons Chamber)

This has been a year of real achievement for the Department for Business and Trade. From holding our record-breaking international investment summit, which saw £63 billion committed to the UK, to intervening decisively to save British Steel’s Scunthorpe site and all the shipyards at Harland and Wolff, we have safeguarded thousands of jobs. We have reformed the Competition and Markets Authority, changed the zero emission vehicle mandate, altered the remit of the Low Pay Commission and introduced the Employment Rights Bill.

We have quadrupled compensation payments to victims of the Horizon scandal. We have agreed trade deals with India, the EU and the US and published a comprehensive trade strategy to help us to secure greater access to global markets for British business. We have brought forward our industrial strategy, and last week a survey by Deloitte found that Britain has become the most attractive place to invest in the world. We are delivering this Government’s plan for change, putting money into people’s pockets, driving growth and kickstarting a decade of national renewal.

The Secretary of State has tried to paint a glowing picture of what is happening, but I can tell him that in northern Lincolnshire there are growing concerns. There have been a number of business failures in the last few weeks in the Grimsby and Immingham areas, and he will be aware of the threat to hundreds of jobs at the Prax oil refinery. All that makes it even more important that the Scunthorpe steelworks has a long-term future. Can he update the House on the state of things at Scunthorpe?

I am always keen to update the hon. Member and colleagues on the situation with British Steel. We have cancelled the redundancy consultation and removed the immediate risk to 2,700 jobs. We have taken on new apprentices and invested significantly in improving health and safety on the site. We have provided significant working capital—that does not take into account yet the future revenue that will come. I am sure he will have been pleased to see that Network Rail has awarded British Steel a contract worth £500 million. We will continue to ensure that there is a long-term future for British Steel, and we will keep the House and himself updated to that effect.

The Government-backed invest in women taskforce is addressing many of these issues through its ecosystem working group, which promotes better access to networks, to support and to procurement opportunities. My hon. Friend is absolutely right, though, to say that we need to go further. The small business strategy will set out a range of further measures in that regard.

I call the shadow Secretary of State.

May I start by paying tribute to Norman Tebbit? He was a former Secretary of State for Trade and Industry and a great reformer who did a great deal to unleash growth in this country.

The only thing growing under this Government are the unemployment queues. Today, the Office for National Statistics revealed that the number of payrolled employees has fallen by 180,000 over the last year and 40,000 in the last month alone. Unemployment has been higher in every month since the Chancellor has been in office. In the last hour, we have heard news of another 500 job losses at Jaguar Land Rover. This is a great country with great people. When the Secretary of State talks to businesses, what reason do they give to him for unemployment rising?

It is always nice to hear from the shadow Secretary of State. First, as he knows, the Office for National Statistics workforce survey shows that the overall number of jobs is higher after a year of this Government than it would have been if the Conservatives had remained in government—there are 380,000 additional jobs. He mentioned payroll jobs. Of course, they are important; they are one key factor, as is wages, which, as he knows, have risen faster in the first 10 months of this Government than they did in the first 10 years of the previous Government. Our productivity figures have also risen, and of course, we closely monitor the impacts of technology.

The shadow Secretary of State asked what businesses say to me. They say that this Government have brought stability after the mini-Budget disaster, which he was a key part of. They say that we have brought openness to the world and are navigating a difficult trading environment better than anyone else, and they recognise that our pro-business, pro-growth measures are delivering. There was nothing like the list I just gave of problems after 14 years of the previous Government.

That answer was complacent and unsympathetic. It is the most vulnerable—those looking for their first shot, their first chance—who pay the price of unemployment.

Let us start again. Last night in the other place, the unemployment Bill was improved with sensible amendments to probation periods, a definition of seasonal workers that protects hospitality and agriculture, and provision for a consultation about the impact on the smallest businesses. Those measures have been proposed by employers, and by independent business groups such as the Confederation of British Industry, Make UK and the Federation of Small Businesses, who say that the Bill in its current form is deeply damaging. If the Secretary of State will not shelve the Bill entirely, will he at least commit to accepting those entirely reasonable amendments?

The shadow Secretary of State talks about vulnerable people. Which Government left one in eight young people not in education, employment or training, while net immigration hit 1 million? It was absolutely shameful, and we will take no lessons from Conservative Members. He talks about tackling barriers; who gave us the highest industrial energy prices in the developed world? The Conservative party. Who is dealing with that? Who has put millions into skills and training, finance, and the tools that local areas need? Those are the things that businesses want.

The shadow Secretary of State also talks about the Employment Rights Bill. I regret the Conservatives’ knee-jerk ideological opposition to it; they could have been pragmatic. The Bill was a manifesto commitment, and we will deliver our manifesto commitments in full. There are issues on which we have to get the balance right, such as probation periods and the future monitoring of zero-hours contracts, and the commitment is of course real. Pragmatic engagement would have been a more constructive way forward than this knee-jerk ideological opposition.

The Business and Trade Committee’s inquiry on small business is still open for evidence from Members from across the House. On Tuesday, we took evidence from the chief executive of Ofgem, who made it perfectly clear that a complete collapse of regulation in the years after covid led to thousands of businesses across our country paying higher energy bills than they needed to. Can the Secretary of State assure the House that the small business strategy, when published, will contain a strategy for bearing down on the energy rip-off that is challenging small businesses across our country?

I am always grateful to the Chair of the Select Committee for his helpful and pragmatic work and engagement. I recognise the issue that he has highlighted. A lot of small businesses were locked into uncompetitive contracts after covid, and the legacy of that has been very difficult. Of course, we will always look at measures to address that. Fundamentally, we must break the link that means that gas sets the price of electricity in the UK. There are no shortcuts to that; we have to get enough clean energy on to the system to make that possible, which is exactly what the Government are doing.

I have a high regard for Tina McKenzie and the Federation of Small Businesses more generally, and we have been working extremely closely with them on thinking through what measures should be in the small business strategy to help businesses start up, scale up and thrive more generally. I gently point the right hon. Gentleman to the slightly more positive picture painted by the fact that the bosses of small and medium-sized enterprises have more confidence. We will continue to talk to the Federation of Small Businesses, and will do so in a lot more detail.

Does the Secretary of State agree that the UK Labour Government are getting on with the serious business of delivering an industrial strategy that will support jobs in my Livingston constituency? That is in sharp contrast to the failing SNP Government, who have no industrial strategy, no plan for workers, and no plan to support Scotland’s key sectors.

I very much agree with my hon. Friend. Nationalism is fundamentally a creed based on grievance, rather than real solutions, and that stands in contrast to our approach. There are specific instances where we could deliver billions of pounds of investment to Scotland if there was a change in policy from the Scottish Government, be it on new nuclear in places where Scotland could benefit from small modular reactors, or on the recent decision to pull support for the Rolls-Royce-led plan for a welding centre for apprentices in the defence sector, which would enable them to support the maintenance of Royal Navy submarines. The SNP Government are actively making decisions that get in the way of that investment. If we cannot change their policy, let us change the Scottish Government.

The hon. Member is right to pay tribute to the tremendous work that posties do up and down the country, rain or shine, to deliver the mail. There have, of course, been issues with performance in the Royal Mail. I am happy to discuss that further with him, and to make sure, with the help of Ofcom, that we get the service that everyone deserves.

On Friday, the Select Committee on Science, Innovation and Technology published its report on social media algorithms, following the Southport riots. Indeed, there is a Select Committee statement on the report this afternoon. Stakeholders have expressed concern that ongoing trade negotiations with the United States might prevent the Government from responding to the report’s recommendations, holding social media companies to account and keeping the public safe online. Can the Minister reassure us that that is not the case?

I can reassure my hon. Friend and all colleagues that those decisions will always be in the domain of this Government and this Parliament in the UK. There has been a lot of speculation, during the trade negotiations, about what may or may not be involved, but we have shown that we deliver on jobs, goods and services, and that is the basis of sound trade negotiations.

I sympathise with the hon. Member’s constituents on the difficulties that they face. On the challenges that he says they face with HMRC, he may want to get in contact with my colleague, the Exchequer Secretary to the Treasury, who has responsibility for HMRC.

At a panel discussion earlier this year, I joined a group of leading women in the hospitality sector, who repeatedly highlighted that the lack of female representation in leadership roles and ownership is a persistent barrier to progress in the sector. What steps is the Minister taking to support women in the hospitality industry into leadership and ownership roles?

This is an important issue. The Invest in Women taskforce is looking at some of the very real barriers that women entrepreneurs face, both in hospitality and more generally. Access to finance is one of the challenges that we have heard back about. A fund is being put together to help women entrepreneurs with that, but we need to do more, and our SMEs strategy will set out our plans in that regard.

We have heard this morning that the review of the UK Internal Market Act 2020 somehow tramples on Holyrood, but in fact, the Government say:

“Devolved Governments will have greater flexibility to set rules”.

Is there not a danger that this invites the SNP Government to introduce change for the sake of change, and divergence for the sake of divergence, thus damaging trade right across the country?

Well, if I am simultaneously being criticised by the SNP and the Conservative party, I am pretty sure that we have got the balance right. The UK Internal Market Act seeks to strike the appropriate balance between giving devolved Governments flexibility on policy and avoiding unnecessary barriers for UK businesses. I believe we have got that balance exactly right.

The over 1,000 employees at the Lotus plant in South Norfolk and Norwich North are the pride of our constituencies, and I thank the Secretary of State for his support in recent weeks. May I ask for a meeting with him and my hon. Friend the Member for Norwich North (Alice Macdonald), so that we can talk about our discussions with local employees?

I can absolutely guarantee my hon. Friend that we will have that meeting. I appreciate the work that we have been able to do together, reacting to the media reports that initially surfaced. There is some clarity from the company, but not the full degree of clarity that we need. I will make sure that we get that meeting set up for him and his colleagues.

I gently say to the hon. Gentleman that we have had four interest rate cuts, almost 400,000 jobs have been created, our industrial strategy has been hugely welcomed, and we have had three deals, so it is perhaps not a surprise that recent surveys point to a nine-year high in business confidence.