PARLIAMENTARY DEBATE
Industrial Strategy - 31 October 2024 (Commons/Commons Chamber)

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.

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.

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?

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.

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?

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.]

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

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.

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?

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.