PARLIAMENTARY DEBATE
Topical Questions - 21 May 2026 (Commons/Commons Chamber)

I call Harriet Cross—not here.

I am grateful to the hon. Gentleman for not ruining my moment to shine.

I told the House that I would be an activist, interventionist champion for business. I am very pleased to say that later today, the Chancellor will announce funding for two of our foundational sectors: ceramics and chemicals. She will set out more detail to the House shortly, but I can say that we are working with industry and experts to provide the targeted intervention that those sectors need. Today’s business tells the story: this Government stand with British business when it comes to creating the resilient and growing economy that this country deserves.

Our economy needs access to oil. Last October, the Government announced that they were going to sanction Russian oil and jet fuel. Yesterday, they decided not to do so, on the same day that they banned new drilling in the North sea. Why do the Government support Putin’s Russian oil, but not our UK oil?

The thing about a Labrador is that when it has got hold of the wrong end of the stick, it is very difficult to get that stick back. A lot of hon. Members have got the wrong end of the stick about what we are doing. We are increasing the sanctions on Russian oil. Up until now, it has been perfectly possible to bring Russian oil products into the UK if they are processed elsewhere, without any impediment whatsoever. It is absolutely right that we are bringing that to an end.

Order. We are on topicals, and I have to get other Members in. I am sure the Minister will have got it.

We recognise the vital contribution of hospitality businesses in the UK, including pubs in Carlisle, to supporting local employment and sustaining high streets and communities. They play a really important role in the cultural and social fabric of communities. I am always delighted to meet my hon. Friend.

I call the shadow Secretary of State.

First, I congratulate the Government on securing the Gulf Co-operation Council deal. Success has many authors, and Members on both sides of the House have been part of these negotiations as Ministers, but a win is a win. These are—[Interruption.] These are our historical friends and allies, and this is part of a growth agenda.

Summer is approaching and young people are graduating. The Office for National Statistics reported this week that, as a direct result of this Government’s choices, one in six young people is looking for a job, but cannot find one. Sectors like retail and hospitality are shedding jobs by the thousands. Will the Secretary of State finally accept that, well-intentioned or otherwise, the Government have got it wrong?

It speaks for itself when the Opposition try to take credit for the Government’s achievements. It shows just how good this Government actually are. However, I am grateful for the hon. Member’s warm words about the GCC deal. A lot of work went into it, but of course when we came into office, we were practically on the starting line; we were so close to it at that moment.

I will be really up front about youth unemployment. This issue faces most communities in our country, and we should have much more cross-party support on it. In the interests of offering an olive branch, let me say that as someone who had a challenging pathway through education into employment, I recognise the issue. However, the Opposition must admit that, in the three years before they left office, youth unemployment went up by 250,000. Yes, we will work together, but it does—

Order. Secretary of State, my words apply to you as well as to Back Benchers, because I am trying to help your Back Benchers get their questions in. We will now hear a very quick question from the shadow Secretary of State.

I thank the Secretary of State for his answer. I hope he would agree, cross-party, with the Tony Blair Institute, which has said that the UK must restore “dynamism” to its labour market, rather than imposing restrictions such as the Employment Rights Act 2025. Could the Secretary of State, who is a good man, at least promise me that, if he gets to serve as Chancellor in a Government led by his friend, the right hon. Member for Ilford North (Wes Streeting), he will use that chance to change the Government’s approach?

Dynamism is increasing in our economy, and that is why we have so much growth—growth that the Conservatives failed to deliver in their 14 years. As for young people, we have the youth guarantee, which includes a six-month funded programme placement that provides a rich environment for kids who were put out of work—a lot of the time, by the Conservatives when they were in government. It gets kids back into work, and does so sustainably.

Just last year, I was in my hon. Friend’s neck of the woods for the investment summit, unleashing further billions into his part of the country. I know that the automotive sector is incredibly important to him, and we are pledged to getting back to the level of automotive output we had before the Tories halved it. When we get back to that point, he will see a flourishing, booming industry, with the jobs that follow.

I call the Liberal Democrat spokesperson.

According to reports in both the Financial Times and The Times, the Government have asked supermarket retailers to reduce the price of essential food items, such as milk, bread and eggs. The chief executive officer of Marks & Spencer has described the proposals as “completely preposterous”. Can the Secretary of State confirm that instead of trying to impose price controls on private businesses, his Department will look to reduce the cost of Government-imposed burdens on retailers, such as business rates, national insurance contributions and energy costs?

There will be no price cap and there will be no price controls, but I am not going to apologise for throwing everything and the kitchen sink at the cost of living challenges that we inherited, along with an economy that was broken.

I am very grateful for my hon. Friend’s question. Yes, I can say that Little Layton in his constituency is one of the 379 communities across the UK that will receive Pride in Place funding, just one of the cross-departmental packages of support that his constituency will benefit from. We will not forget. We will keep on supporting him all the way.

I am very happy to meet the company, and the right hon. Gentleman if he want to come and see me, to talk through all those issues. It is really important, if we are to have a steel production sector in this country, to ensure that it has an opportunity to compete with unfair competition around the rest of the world. That is why we are taking the action that we are. The Under-Secretary of State for Business and Trade, my hon. Friend the Member for Stockton North (Chris McDonald), made the point earlier that if we do not take this action on quotas and tariffs, we will be dumped on, because every other equivalent major economy to ours is taking that action, but I am very happy to look at the precise details with the company, and with him.

Order. Please, come on! Tell me who you don’t want me to get in, because that is what happens when we do this.

My hon. Friend raises an incredibly important point. The UK Government have a support package for England, with £4.3 billion to protect ratepayers. The Barnett consequentials provide support for Scotland, but where the UK Government are supporting businesses, the SNP is choking off investment and risking jobs.

Of course I am happy to meet. Maybe we should organise a meeting for several companies and several hon. Members. I am very happy to do that as soon as possible. I do not want to extend the transition period, for the simple reason that the EU, the United States and other countries are introducing very similar measures, and the danger is that we would just be dumped on. There will be a review mechanism after a year. I am very keen to meet colleagues to explain the trade-offs we are having to make.

I call the Chair of the Select Committee.

The Committee is meeting steel makers later today and will supply the Government with its advice from that, but I want to raise the automotive sector. We are not going to double automotive production in the way the Secretary of State wants unless we fundamentally reform the zero emission vehicle mandate. Auto makers are subsidising sales by £5 billion a year. They are transferring money to state-subsidised players, such as BYD, and battery costs have not fallen. Will the Secretary of State bring forward a whole-market review and reform the ZEV mandate for good?

My right hon. Friend, as always, gives great voice to the automotive sector. I have listened closely to the voices of the sector in relation to the ZEV mandate—it is important that we do that. It is also important that, when setting such targets, we take into account consumer demand. That is something I am very aware of and having conversations about with colleagues across Government.

Boosting opportunity and tackling youth unemployment in every area remains a priority, and helping young people into work is crucial for that. We know that some people value that flexibility, which is why I will be considering that as part of the regulations.

My hon. Friend is absolutely right about the potential in Cornwall, which is a unique and distinctive part of the country. It powered our industrial past and it will power our industrial future. I am happy to meet her and colleagues to talk more about the opportunities in Cornwall.

The pubs in Spelthorne are under the cosh. The Minister, in answer to my hon. Friend the Member for Broadland and Fakenham (Jerome Mayhew), said that a review of pubs and how they are valued for business rates purposes is ongoing. She will know that the review will not be relevant until 2029. Pubs are closing today. Young people are losing their jobs today. Will those on the Government Front Bench please do more to lobby the Treasury for our pubs?

Pubs in the hon. Member’s constituency and nationwide are so important to day-to-day community life, and we are mindful of the challenges that they have faced in recent years. The number of pubs has fallen by nearly 7,000 since 2010. We know how significant that is, and I will work closely with colleagues to support pubs.

I am delighted that the Government have listened to my calls, and those of my neighbours in Stoke-on-Trent, to finally act to support the ceramics industry—calls so loud that my hon. Friend the Member for Stoke-on-Trent Central (Gareth Snell) has lost his voice. While we await the detail, will the Secretary of State come to North Staffordshire to meet the ceramics businesses that he and this Government are helping today?

I am grateful to my hon. Friend for his comments. The package that we are announcing today will be significant. I will not say any more, because the Chancellor will be making that announcement later. I can say, however, that the boldness of the package is a direct consequence of the voices that we have heard from MPs, including from my hon. Friend and others in Stoke—whether losing their voice or not. Those voices have been profoundly important to the scope, scale and boldness of what will be announced today.

Hospitality businesses in North East Fife support the Lib Dem call for a VAT cut for hospitality, but the Government do not seem to be moving on it. Will the Minister consult with businesses on a lower national insurance contribution band for part-time workers? Part-time opportunities are so important to hospitality and for getting younger people into work.

It was a pleasure to meet the hon. Member and the hospitality sector in her constituency recently. There are a wide range of factors when introducing new tax reliefs, and they need to happen in the usual way. The alleviation that we have already introduced on NIC is making a real difference to young people getting into employment. We will review it in the usual way in due course.

In October, Nestlé announced 16,000 job losses, including 450 in the UK. In the light of the significant impact that this will have in York, will the Secretary of State ensure that meaningful consultation happens with the trade unions, and will he meet them to save those jobs?

Yes, of course I will.

Small businesses in Didcot’s Broadway are struggling with energy and staff costs, business rates and a rising tax burden, and the older town centre would benefit from investment and rejuvenation. For areas, such as Didcot, that did not receive Pride in Place funding, what suggestions does the Secretary of State have for funding or other forms of support?

What businesses in Didcot and right across the country need is a fast-growing economy, and that is what we are delivering.

In my constituency we are seeing good growth in our large employers and a great skills pipeline coming through from our advanced technical college, but we need a little support for our SMEs. Will the Minister say what targeted support is available for SMEs in towns like Stafford?

My hon. Friend raises an important point about support for small businesses. It is important that their cash flow is protected and that they are paid on time—hopefully my hon. Friend will have noticed the announcement of the Commercial Payments Bill in the King’s Speech, which will give us the strongest legal framework in the G7.

Fifteen months on from the £200 million pledged for Grangemouth, and five months on from the Minister’s confirmation that prospective projects were being examined and shortlisted, what progress is being made to deliver new industry and jobs for Grangemouth?

My hon. Friend is right: £200 million is available for such projects. The initial £14.5 million of funding that was announced will help businesses to test the feasibility of their project ideas in order to secure long-term funding from the National Wealth Fund.

Back to the 1 July tariffs: the quotas are too small and the commodity codes are too broad. The steel required for aerospace can come only from, I think, SSUK, which is currently in liquidation. That grade of steel cannot be produced elsewhere—that is for commercial steel. Businesses will be bankrupted within six months—12 months is far too long. Will those on the Front Bench please listen to industry on this?

We are listening to both sides of industry, because there are the downstream users and there is the production. The truth of the matter is that UK steel production under the previous Government fell from— I think this is correct—27 million tonnes a year to 4 million tonnes a year. If we are to meet our armaments needs in future years, we need a sovereign steel capacity in this country. We have to be able to produce British steel. We have been very careful to ensure that the quotas are cutting areas only where the UK can produce that steel.

Does the Minister agree that expanding the use of home-grown timber in construction and manufacturing would not only support UK forestry and small businesses, but strengthen supply chain resilience and reduce our reliance on imports, which currently make up 80% of the timber we use? What specific measures will the Government introduce to support this sector as a strategic national asset?

My hon. Friend knows that I am a strong advocate of steel in construction, but she is right: there has been a missed opportunity on timber, particularly as many of our hardwood forests are coming to maturity, which means we will have a real surplus of hardwood in the UK. Something we will suffer from, though, is downstream processing of timber, so we need to look at how we can encourage more investment in the sawmills and downstream processing industry.

Order. I want to let Members know that Harriet Cross had the first topical question on the Order Paper, but she had withdrawn it. I want to reassure the House that that was a mistake, and we were following the agenda. Hopefully that will not be repeated by the Table Office.