PARLIAMENTARY DEBATE
Topical Questions - 12 June 2025 (Commons/Commons Chamber)

Since our last oral question time, we have secured three major trade agreements to boost British exports and drive growth across the UK. This Government are delivering trade deals that benefit businesses and put money in workers’ pockets, and are securing deals that other Governments promised, but failed to deliver. We have an agreement with our largest trading partner, with the biggest economy in the world, and with the fastest-growing big economy in the world. As we have heard, the India deal alone will boost wages by £2.2 billion a year when fully operational. Our new strategic partnership with the EU could add nearly £9 billion to our economy by 2040, and the UK was of course the first country to secure a deal with President Trump. I can also confirm that in the past week, we have hosted delegations from the US and China, in order to assist them in their negotiations with each other. As I have always said, under this Government, the UK will be the most open and best-connected economy in the world.

I congratulate the Secretary of State on his excellent work. The Government’s decision to suspend their trade negotiations with the Israeli Government last month was absolutely the right one, but some constituents have been in touch in confusion after trade envoy Ian Austin’s visit still went ahead. Can the Secretary of State affirm that this Government’s position is that we will not be deepening our trade ties with the Israeli Government while the situation in Gaza and the west bank remains so appalling?

I am grateful to my hon. Friend for that question. Yes, I can reaffirm that position. As she says, the Foreign Secretary announced on 20 May that we have suspended negotiations on an upgraded free trade agreement with Israel in response to the egregious actions of the Netanyahu Government in Gaza and the west bank. Of course, the UK has existing business relationships with Israel that are not affected by that decision, and we maintain trade envoys with both Israel and the Palestinian territories. What we all want is peace, a two-state solution and a strong UK relationship with both states.

I call the shadow Minister.

Postmasters who were hit by the Horizon scandal will be concerned to hear Sir Alan Bates describe the compensation process as a “quasi-kangaroo court”. Can the Minister reassure postmasters about the redress that they are due, and reassure taxpayers about the redress that he is seeking from Fujitsu?

I thank the hon. Lady for her question, and she is absolutely right to draw attention to the continuing need to speed up compensation to sub-postmasters. Since we came into government, we have increased fourfold the amount of compensation paid to sub-postmasters, but there is an awful lot more to do. On the issues that Sir Alan Bates raised, the hon. Lady will know that under the group litigation order scheme, through which his compensation issues are being addressed, there are various independent points on the journey at which to consider the offer—

Order. If Ministers do not want Members to get in, please will they say so, because they are taking all the time from Back Benchers, which is really unfair to them? Back Benchers have put forward their names and come here to ask questions, and Ministers are just enjoying themselves too much.

I completely agree with my hon. Friend. I know that he will do what he can to promote his constituency, and the extra funding for the British Business Bank will really support his area.

I understand the prominence of the issue in the right hon. Member’s constituency. We already import a significant amount of ethanol from the US: 860,000 tonnes of bioethanol. We recognise the competitive pressures that the US trade deal will bring—it is obviously not yet in operation—and have met the companies affected and continue to negotiate with them. They are already very distressed and lose significant amounts of money, so what they really need are regulatory changes from the Department for Transport for the market as a whole. I can assure him that we are working on that.

I thank my hon. Friend for his question. Through our small business strategy, we will set out very shortly further plans to support businesses to get on the high street. The increase in money in the British Business Bank, announced yesterday by the Chancellor, will also significantly increase access to finance for such businesses.

I call Sarah Pochin—not here.

I thank my hon. Friend for her question; she is absolutely right to raise it. UK product safety law is clear: all products must be safe before they are placed on the market. As she sets out, goods sold via online marketplaces are becoming a significant problem. That is why we introduced the Product Regulation and Metrology Bill, which will allow the introduction of clear obligations for e-commerce businesses, in order to ensure consumer safety and a level playing field. We intend to consult on product safety requirements for online marketplaces very shortly after Royal Assent.

I absolutely accept that invitation, and I can tell the hon. Gentleman that we are already extremely involved, as is the Minister for Industry. We welcome what has happened with Airbus, but we are focusing a great deal on the RemainCo and the issues there.

Last year, the Secretary of State joined me on a visit to our vibrant high street in Pangbourne. I recently met the owner of one of those businesses, Nino’s, a fantastic trattoria and deli. One issue that Nino raised with me was the regulatory burden on his business. How will the Government’s small business strategy deal with that key challenge, and how will it support small businesses like Nino’s, so that they can continue to thrive?

We had a wonderful visit about a year ago, and I hope the Pangbourne Cheese Shop is still going strong. Yes, the regulatory burden on small business is a huge area of attention for this Department; there is the business growth service, our action on late payment, and our incentivising of digitisation and e-invoicing.

Our farmers and growers can survive only if there is a functioning supply chain, but since the creation of the Groceries Code Adjudicator, they complain bitterly about continuing poor practice and the risk of de-listing. Does the Minister not agree that it is time to beef up this organisation, and to amalgamate it with the Agricultural Supply Chain Adjudicator?

We had a Westminster Hall debate last week in which a number of these issues were raised. The hon. Gentleman will know that we are undertaking our fourth review of the GCA. I encourage him and other hon. Members to contribute to it. We are considering the points made in that debate, and we will welcome any comments in the review.

I call the Chair of the Select Committee.

I very much welcome yesterday’s investment in UK energy abundance, but as our Committee pointed out on Friday, the success of the industrial strategy will depend on a plan to cut industrial energy costs now. When the industrial strategy is published, will the Secretary of State reassure us that there will be a plan to ensure that UK energy prices are internationally competitive?

I thank my right hon. Friend and the Select Committee for all their work in this area. He knows my view from the evidence that I have given. The significant increase in industrial energy prices under the previous Government is a significant issue for our competitiveness—and yes, that is something that we seek to address.

When it comes to bus manufacturer Alexander Dennis and the jobs at risk there, there is not an elephant in the room—there is a Chinese dragon. The company is in competition not with commercial organisations from China, but with entities of the Chinese state. What representations will the Secretary of State make to the Prime Minister in an attempt to level a playing field that is currently about as flat as the Galloway hills?

I firmly agree with the hon. Gentleman that a level playing field is not just an economic necessity, but a matter of economic security and production in western economies like our own. Of course, if a company has a specific case to make, it should make the representation to the Trade Remedies Authority directly—I have that power, but it would usually come from industry. If the company has a specific case to make, the hon. Gentleman should encourage it to make that representation.

It was fantastic to hear the Government’s commitment yesterday to making the UK a defence industrial superpower. At its peak, Stocksbridge Speciality Steels, in my constituency, produced 15% of global defence and aerospace steel, which is essential to our national security. What work is the Secretary of State doing to secure Stocksbridge Speciality Steels so that this valuable steel asset can be used to maintain our national security?

My hon. Friend knows that I believe the workers at that mill in her constituency are a national asset and that I want them to have a strong future as part of our overall steel strategy. We are closely monitoring the specific situation there, which colleagues will be aware of, and are determined to find the outcome that she and I would want to see.

The Prime Minister routinely states his unwavering support for Ukraine, yet as a result of UK Government inaction, British businesses continue to bankroll Putin’s brutal war on a colossal scale. Since the beginning of Russia’s full-scale invasion in 2022, a whopping £205 billion of Russian fossil fuel exports have been shipped by our own UK-based maritime companies or by ships with our own UK-issued insurance. Astonishingly, one company, Seapeak, has carried almost a quarter of Russia’s liquefied natural gas exports. Can the Secretary of State give us an update on what the Government are doing, and deal with this immediately?

I am concerned by the figures the hon. Gentleman raises; if he writes to me, I will look into that immediately. We have taken extensive action to sanction not just individuals, but the shadow fleet, as it is described, transporting Russian fossil fuels, and are willing to take any action necessary.

I am sorry that I was not able to meet the Dad Shift campaigners yesterday, although I have met them previously. I can assure them and the House that the Government are committed to ensuring that parents receive the best possible support to balance their work and home lives, and we recognise that parental leave and pay entitlements play a key role in that. We know that the leave system needs improving, which is why we are committed to conducting a review, which will look at paternity leave and pay and the length of leave available to fathers and partners. More detail on the review will be set out before the summer recess.

The chief executive of UKHospitality estimates that there will be an extra £1 billion of costs on employers for new workers—774,000 of them—coming in to the national insurance contributions regime, on top of £2.4 billion in other costs. If, by the next Budget, it turns out that the previous Budget is crushing the hospitality sector, will the Government consider tax reliefs in order to power our hospitality industry?

The hon. Gentleman knows the Government, and the Treasury in particular, monitor the impact of all taxation. I have to be frank with colleagues: I have no idea what the Conservatives are trying to tell us today. They seem to want more spending and lower taxes—it seems like Liz Truss is still hanging around the party, to be honest. I have to ask Members on the Opposition Benches: what is your policy towards national insurance?

I welcome the UK-India trade deal, which is good for salmon and good for whisky. Will the Secretary of State use his muscle to ensure that a chain of small distilleries in my constituency and across Scotland can sell a wee dram to India, as well as the big brands?

Mr Speaker, I would like to draw the House’s attention to reports of a crash on take-off of a London-bound Air India flight from India today, and allow the Secretary of State to express our concern.

It is very important, and I think the Leader of the House will make reference to it when we get to business questions—if we get there.

I am extremely grateful to my hon. Friend for updating the House on that matter. He will know that one of the brilliant things about the UK-India deal is that it is not just for the higher-value, iconic products we are all familiar with; for bulk, there is no minimum price in the deal. The deal is incredibly strong for every bit of the whisky—and gin—industry in the United Kingdom.

I am alert to the news my hon. Friend has just shared, and colleagues will update the House.

Greenergy, a company based in Immingham, has been forced to shut down and review some of its operations in the UK. In part, that is due to an influx of heavily subsidised hydro-treated vegetable oil from the US. Will the Secretary of State bear this in mind when he has trade negotiations with the US with a view to easing the situation?

I shall of course take that up with the hon. Member. I have spent a fair bit of time in his constituency, as he knows, on one matter or another. On fair trade and level playing fields, colleagues can direct their industries to the Trade Remedies Authority if they have specific concerns, but, of course, we monitor those matters at a departmental level as well.

Since the global financial crisis, listing on the London Stock Exchange has fallen by 40%, posing a significant barrier to growth, as liquidity and investor activity decline. What steps is my right hon. Friend taking to ensure that more British businesses are listed on the London Stock Exchange and that the UK remains a leading global financial sector?

That is an area of concern to us all. We support and continue to implement some of the listing rules and prospective changes of the previous Government, but the bigger change from this Government is to liquidity, particularly around pensions reforms. None the less, this remains an issue of key competitiveness for the United Kingdom.

I call Josh Babarinde for the final question.

Eastbourne businesses Qualisea, Gianni’s and Gr/eat are up in arms, as I am, that East Sussex county council’s shambolic management of the Victoria Place pedestrianisation means that works will now fall in the summer, their busiest trading period. What provision will Ministers make to ensure that businesses hit by such disruption can be properly compensated?

The hon. Gentleman will understand that I do not have the details of that specific case, but if he wants to write to me I will happily look into it.

That completes questions. We will now let the Front Benchers change over.