1. What assessment he has made of the potential merits of introducing digital ID for businesses. (900065)

It is going to be a busy day for the Department for Business and Trade team. We are going to be spending a lot of time together today, Mr Speaker, and I very much look forward to it.

We are improving how businesses find, log into and use digital Government services. Better digital services—increasingly joined-up services—can reduce administrative burdens and save businesses time and money. That is why we have pledged to reduce the administrative burdens on business by 25%, and digital will play a key role in that.

Small businesses are the backbone of our economy, yet research shows that the average small business cannot start its real work until 2.36 pm on a Wednesday because of the time lost to administrative tasks. My own experience is that business owners need to engage regularly with various departments and agencies for all manner of reasons, and proving their identity can be a time-consuming task, so will the Secretary of State consider introducing a unique business passport—effectively, a unique digital ID for businesses—to cut administrative burdens and free up small businesses to deliver growth?

My hon. Friend and I share a zeal for using digital to transform the relationship between Government and those who use services. When I was the Secretary of State for Science, Innovation and Technology, I was very proud to work with the Government Digital Service team and see how they are transforming the ability of individuals to interact with Government. We need to have the same zeal for transforming how businesses interact with Government, and I can assure him that a programme of work is going on with my Department to make sure that that is the case.

2. What recent discussions he has had with the Secretary of State for Culture, Media and Sport on the role of the Competition and Markets Authority in the resale of tickets for sporting and cultural events. [R] (900066)

I welcome the keen interest in this issue that my hon. Friend has shown. I and my officials have regular discussions with the Department for Culture, Media and Sport, including on the publication of the draft secondary ticketing Bill in the second Session of this Parliament. Consumer enforcement is a key strand of that work, and the CMA is the UK’s main consumer enforcer. As such, we have naturally discussed its important role in the ticketing ecosystem and consumer protection more broadly. In addition, last week the Government introduced the Sporting Events Bill. This will make the unauthorised resale of tickets for major sporting events that meet the conditions in the Bill a criminal offence.

Ending ticketing scandals was a manifesto pledge prompted by the Oasis surge-pricing scandal, but it appears only in draft form in the King’s Speech. Peak gig-going season is upon us—maybe even for you, Mr Speaker, with your Motown habit—as is a cost of living crisis. [Interruption.] We all know about it and love you for it, Mr Speaker.

Someday we’ll be together.

Indeed—reflections of you. Will Ministers meet me to discuss the solution? My meticulously researched, widely backed ballot Bill from 2024 is ready-made and ready to go. It deals with this issue by among other things banning the bots that hog tickets for resale, so that we can stop this rip-off without delay.

I thank my hon. Friend for her work on this issue; I know that it has been close to her heart for many years. That is why we have committed to publishing a draft secondary ticketing Bill, as set out in the background to the King’s Speech. That shows our continued commitment on the issue and we are pressing ahead on work that will allow us to legislate as soon as parliamentary time allows. The benefit of the draft Bill is that it will allow scrutiny from parliamentarians and sector experts to ensure that we are getting the approach right. I thank her and hope that she can hear my commitment today.

As artists and songwriters gather today for the Ivor Novello awards, fans across the country are still being ripped off by ticket touts, despite the Prime Minister’s promise to act “as soon as possible”. It is incredibly disappointing that the Government have proposed only a draft ticket tout ban Bill in the King’s Speech. Does the Minister accept that any further delay simply benefits those touts and secondary ticketing platforms, and will she give us a date for when proper legislation will be brought forward to protect fans?

The hon. Member will know that since the Government published our response to the consultation on the resale of live event tickets, we have been working tirelessly to prepare new measures—exactly to his point—to tackle those ticket touts who take advantage of real fans who want to see their favourite bands and artists. That is why the next step is to introduce a draft Bill in this Session. That will enable parliamentary scrutiny and allow us to draw on the expertise of key stakeholders to ensure that our legislation is truly effective and enforceable, because a well-functioning ticket resale market can play such an important role in enabling those who cannot attend an event to give someone else the opportunity to go in their place.

3. What recent discussions he has had with Royal Mail on the adequacy of its service levels in Greater Manchester. (900067)

The Minister responsible for small business and economic transformation, the Under-Secretary of State for Business and Trade my hon. Friend the Member for East Renfrewshire (Blair McDougall), met Royal Mail’s chief executive on 12 May to discuss its service improvement plan. I know that my hon. Friend has been campaigning on these issues in her constituency vigorously and that has been heard loud and clear. Royal Mail has told my Department that Middleton delivery office in my hon. Friend’s constituency is fully staffed and delivers to most addresses six days a week. I know that she will be scrutinising that and might well have a bit more to say on that now.

Last week, I held a meeting at the fantastic Burnside community centre in Langley with representatives from Royal Mail and constituents, including those who have had to deal with a substandard postal service resulting in crucial correspondence arriving weeks late, if at all. To many people in Heywood and Middleton North, that is a direct result of a national asset being sold off to a private company focused on profit rather than quality of service. If that level of service continues, what further options is the Secretary of State considering to hold Royal Mail to account, and where necessary will the Government step in and force the changes that my constituents need to see?

I said that my hon. Friend was a great advocate for her residents on this issue; she is proving so once again. I can reassure her that the Government have secured a commitment from Royal Mail’s owners to prevent the payment of dividends until service levels improve. That will be a tangible impact on the business unless service levels improve. I have also been involved in discussions with Royal Mail’s owners and the Communication Workers Union to get a deal that can start work on the universal service offering and modernisation reform package for the company, as well as one that tackles pay equalisation. They have reached a deal and it is now out to CWU members. I hope that that will be the foundation for real improvement into the long term. It shows this Government’s active industrial strategy that get things done.

4. What steps he is taking to develop an industrial strategy. (900068)

We have just heard from the Secretary of State about our active industrial strategy. This question is timely, because we are one year on from setting out our industrial strategy. We have announced our British industrial competitiveness scheme, expanding its scope to support 10,000 businesses with their energy costs, a £500 million sovereign AI fund, and the creation of 19 new technical excellence colleges, giving opportunities for young people across the country.

If climate breakdown accelerates, many of the international supply chains that we have relied upon for essential goods and resources for far too long will cease to exist. We are sleepwalking towards a situation in which this country can no longer guarantee the basic needs of its people. At that point, no amount of AI slop or casino capitalism will be an alternative to actually making things. Before ecological collapse makes it too late, will Ministers use their industrial strategy to pivot our economy back to producing more of the essentials that we use in our daily lives?

My hon. Friend knows that when he talks about reindustrialisation and improving the manufacturing base of this economy he finds a very sympathetic ear in me. Certainly, we have all seen over the course of the past few years, through multiple crises, how the resilience of global supply chains has been reduced. Increasing the share of our economy that is dedicated to manufacturing will serve the ecological aims that he has mentioned, improve our national resilience and provide good, well-paid and high-productivity manufacturing jobs in our industrial heartlands across the whole of the country.

The largest sector of the manufacturing base is food manufacturing, but it was deliberately left out of the industrial strategy. As a consequence, food manufacturing is now facing rising input costs, especially from energy, and is unable to get the assistance that the Minister just referred to. The Food and Drink Federation thinks that food price inflation could get to 9% or 10% this year. With the benefit of hindsight, do the Government think that it was possibly a mistake to exclude food manufacturing from the industrial strategy?

At the time that the industrial strategy was established, the Government carefully selected those sectors that had the greatest growth potential for the economy, but we were also extremely clear in communicating that that does not mean that sectors that were not identified as having high growth potential were not important—quite the contrary. Our food manufacturing sector is incredibly important, and the Government are acutely aware of the issues around food prices. I believe that the Chancellor of the Exchequer may well have more to say on that subject in a statement later today.

The future of the car industry is in electric and automated vehicles, and the west midlands and the UK have always been leaders in car manufacturing across the world. Can the Minister say more about what we are doing to protect the industry and ensure that its future lies in the UK?

My hon. Friend is right that automotive manufacturing is a key part of our advanced manufacturing sector, and she has done a huge amount here in the House to champion the sector in her area nationally. One area we are focusing on is supporting the sector with the development of new technology, such as autonomous vehicles; last week, the Secretary of State signed a memorandum of understanding with Wayve. We are determined that the UK will become Europe’s first market for digital driving services, driving the market and driving our automotive industry.

In my constituency, I have one of the last remaining chlorine production sites, Vynova. On a recent visit, I was told that its future is uncertain because of production costs—it is a highly energy-intensive industry. Does the Minister agree that it is strategically critical that the UK has its own chlorine production, and will he meet me to discuss the future of the site?

I commend the hon. Lady for championing the chemicals sector in the House. I am extremely concerned about the sector, including chlorine, because it is vital to the UK economy, as she says. This Government are taking action through our industrial strategy to focus on heavy industry and energy-intensive industries. I might have an opportunity to speak with her later today, if that would be of interest.

I call the shadow Minister.

The Government’s industrial strategy rightly states that improving skills in the construction sector is essential to keeping our country building. In fact, on page 44, there is a commitment to invest

“£625 million to train…60,000 more skilled workers”.

It has been one year since publication, so how many more skilled workers have entered the construction workforce as a result of that commitment?

The hon. Gentleman is right to point out the importance of construction skills. In fact, on a recent visit to a construction skills academy in east London, I had the opportunity to do a bit of tiling myself—that has come in quite handy at home, actually—and to talk to some of the young people, who realise that they are developing skills for life. The Government are incredibly committed to that. The hon. Gentleman may have missed it, but he will be pleased to know that the Government have announced five new technical excellence colleges to help young people to get those skills for life in the construction sector.

I am grateful for the update on the Minister’s tiling skills, but I did not hear a number showing how he is making progress on the £625 million commitment. Perhaps he can write to me on how they are making progress. One of the existing schemes that supports training is the Construction Industry Training Board, but many industry leaders believe that it is no longer working or delivering. Construction firms are facing significant bills as a direct result of the levy, all while the CITB is reducing training provision. What is the Minister’s view of the CITB, and has he engaged with the construction industry to discuss it?

Yes, indeed. I engage with the construction industry extremely regularly as the co-chair of the Construction Leadership Council, and skills, along with health and safety, are absolutely at the top of our agenda. The views of the construction industry on the Construction Industry Training Board are discussed there and decided there by the industry.

I call the Liberal Democrat spokesperson.

The Government announced their intention in the industrial strategy to use their procurement power to shape markets for innovation in the longer term. Tech start-ups in my constituency complain that the process of getting Government contracts is slow, risk-averse and structurally biased in its financial viability tests and paperwork requirements towards incumbents and US suppliers. As one of them put it to me, no one gets sacked for buying IBM. That surely prevents the Government from achieving their goal of greater innovation. What conversations is the Minister having with his Cabinet Office counterparts to ensure that our ambitious home-grown small and medium-sized enterprises are not being squeezed out of the competition for public contracts that could provide these firms with valuable growth opportunities and the innovation that our economy and public services so badly need?

The hon. Member raises an extremely important point: Government procurement can, of course, be an important lever for growing our economy. Whereas previous Governments used the fig leaf of being in the EU as an excuse to buy things from overseas simply because they were a penny cheaper, this Government are committed to ensuring that as much as possible of UK taxpayers’ money is spent in the UK.

The hon. Member asks what discussions I am having with Cabinet Office colleagues. I am having discussions with colleagues in the Cabinet Office, the Home Department, the Ministry of Defence and across Government, because there is a commitment among Ministers to ensure that Government procurement is targeted at British companies. My right hon. Friend the Secretary of State has made a strong commitment to reduce regulation and bureaucracy, so we can ensure that these contracts are awarded more efficiently and more easily to small businesses in the UK.

5. What steps he is taking to support pubs in Broadland and Fakenham constituency. (900070)

Pubs such as The Crown and the Running Horse in the hon. Member’s constituency are a real asset, bringing people together and supporting community life. They are now benefiting from a 15% reduction in their business rates bill, with bills frozen in real terms for a further two years. Around three quarters of pubs will see their bills stay the same or fall, saving the average pub around £1,650 this year. Going even further, the Government are launching a review of how pubs are valued for business rates. The hospitality support fund has been increased to £10 million, to support businesses, including pubs, to invest, grow and remain resilient.

Pubs in my constituency will respond to that answer with disbelief. There were 74 pubs in my constituency at the last count—that may be an inaccurate figure now; it could have dropped—employing roughly 2,000 people, and on top of that there are cafés such as the Heydon Village Tea Room. They tell me that they are being crucified by the Government’s policy of the jobs tax, the removal of business rates relief and the business rates revaluation, and to top it off there is now talk of an overnight levy for pubs with rooms. Why do the Government not want pubs and hospitality to thrive in Broadland and Fakenham?

We absolutely want pubs and our hospitality sector to thrive. They are the backbone of our communities and often provide people’s first job. That is why they are so vital to our high streets, to the hon. Member’s constituency and to our local communities. As he will know, pubs in particular have been under huge pressure in recent years. Their numbers have fallen by nearly 7,000 since 2010—a roughly 15% reduction and among the highest across hospitality overall. That is why, since April, every pub and live music venue will have 15% off their new business rates bill, on top of the support announced at the Budget. We know that we continuously need to support our pubs and the wider industry. That is why I work really closely with the Hospitality Sector Council and with publicans and pubs all across the country, to understand how we can better support them, and I will continue to do so.

6. What progress his Department has made on implementing the Employment Rights Act 2025. (900071)

My hon. Friend was an advocate for such legislation long before it was introduced in the House last year. I know how passionate he is about our wider Make Work Pay agenda, as I am too. The Employment Rights Act 2025 is bringing employment rights legislation into the 21st century. We have already repealed burdensome trade union legislation, strengthened statutory sick pay, introduced day one rights to paternity leave and launched the Fair Work Agency. We are implementing the Act over a two-year period and consulting widely with business organisations, trade unions and civil society, to ensure we get the details right and provide the support people need.

I draw attention to my membership of the GMB and Unite trade unions, and I welcome and acknowledge the Minister’s firm commitment to this area. The Department recently published its response to the trade union right of access consultation. Capping fines at £500,000 equates to a potential liability of 0.02% of operating profits for Amazon’s warehousing operations, but up to 20% of the surplus of a medium- sized trade union. We must get this right. How does disproportionate liability achieve the Government’s aim of creating a workable right in the minority of cases involving very well-resourced and hostile employers?

The legal framework for the right of access in the Employment Rights Act 2025 provides an enforcement mechanism that applies to all parties involved in an access agreement. The Government are clear that the enforcement mechanism must be fair, proportionate and adaptable, and we have set out the factors that the Central Arbitration Committee must consider when setting the value of penalties, acknowledging that some breaches will have a greater impact than others. Those factors will include the gravity of the breach, the number of workers affected by it, and the size and resources of the liable party. The Government believe that the level of penalty fines that the CAC may impose must reflect the seriousness of the breach.

Unemployment is rising, with youth unemployment now at 16%, and the jobs tax and the Employment Rights Act are destroying opportunities. Should Ministers not listen to the chief executive of M&S, who said that instead of “trying to run business,” the Government “should…understand business better”? Will they reduce the burden of regulation and tax, rather than continuing to increase it?

The hon. Member will know the stats and the results that we have seen in the economy this year, particularly on growth. I am glad that he references youth unemployment, which is a long-term problem in the UK. The number of young people not in education, employment or training went up by a quarter of a million in the last three years of the previous Government. It is a long-term problem, and that is why we are taking it very seriously. He will know about our announcements on the youth guarantee to provide hiring incentives to foundational apprenticeships, especially in retail and hospitality. We all know the importance of that. Overall employment levels are healthy, but we are not complacent. We know that there is more work we need to do with employers to support them. That is why, for example, the £2.5 billion that we are making available through grants to businesses to help to create over 500,000 opportunities for young people to earn or learn is so important.

I call the shadow Minister.

The Employment Rights Act is one of the reasons given by one in eight business leaders for considering leaving Britain. Indeed, 30% of the Sunday Times rich list have already fled this high-tax socialist Government. The family business tax is another. Will the Minister please lobby the Chancellor for another U-turn, this time to adopt our policy of scrapping the family business tax?

This Government are absolutely clear that economic growth is a top priority. We are also absolutely clear that we cannot build the foundation for a strong economy with people in insecure work. That is why this legislation is so important, and we were proud to bring it forward. We are also proud to work with businesses across the country on it, and with our trade union and other partners across the country, working together so that we can build an economy that works for working people, reverse the damage that the hon. Lady’s party did in government and make sure that the economy works in the interests of everybody.

7. What steps his Department is taking to support small and microbusinesses in rural areas. (900072)

Ensuring that business support takes account of rural needs is incredibly important for this Government. Around one in six people live in rural areas in England, with over 520,000 businesses contributing £259 billion to the English economy.

My constituent Jason runs The Cider Barn in the village of Draycott just outside Cheddar, a fantastic local venue that hosts live music and serves, unsurprisingly, really good local cider and ales. Jason was rocked by this year’s massive increase in business rates, which have jumped from £100 a month to £600 a month. I should not have to explain that that meant a significant rise in his operating costs. This kind of shock makes it so hard for micro and small businesses to survive, let alone to thrive. Given how important The Cider Barn is to the local community, what can the Minister say—and, importantly, do—to assure small businesses like Jason’s that they will be supported by this Government?

The fact that the hon. Lady’s constituent works in the hospitality sector and is located in a rural area means that he requires multiple types of support from this Government, which he is getting. We have permanently lowered the business rates multiplier for eligible retail, hospitality and leisure properties. That is worth nearly £1 billion and benefits over 750,000 businesses. I imagine that his business will fall within the definition of a small business. Just this week, we have introduced legislation to tackle late payments for small businesses, which will inject another £11 billion into the economy. This Government are on the side of businesses, whether they are in urban or rural areas and whether they are large or small.

I call Perran Moon.

Meur ras ha myttin da, Mr Speaker. Over 95% of Cornish businesses are small or microbusinesses. We are a hotbed of innovation and agility, but these Cornish businesses have been supported over the last 10 years with European Union objective 1 funding and shared prosperity funding, both of which have ended, and there is zero chance of Cornwall joining an English mayoral combined authority, so can the Minister outline how we can protect our innovative and agile micro and small businesses?

My hon. Friend is describing businesses that are the lifeblood of the British economy, and the innovation that flows from them is vital. The Department for Environment, Food and Rural Affairs’ rural taskforce is taking a strategic view of the challenges faced by businesses in rural areas, and I imagine that the one that he mentions will be in scope. The business growth service also includes growth hubs across the UK, which are supporting businesses in rural areas so that they can get the growth they need into their businesses.

8. When he plans to publish his Department’s review of and consultation on the opt-out collective actions regime. (900073)

The Government call for evidence on the opt-out collective actions regime closed in October last year, with almost 100 responses received. I welcome the input stakeholders have provided. We are committed to economic growth and robust competition enforcement, including private enforcement, which is good for businesses, consumers and the economy. A consultation will be published as soon as possible. My officials would be happy to work with the right hon. Gentleman to discuss this work further.

As the Minister says, it is really important that the collective regime continues—we have a great reputation globally for our opt-out regime. The litigation finance industry is vital to supporting claims from consumers. The Government said last year that they would proceed with a Bill to restore a legal issue following the PACCAR judgment, so does she have an update on when that Bill will come forward? It was not in the King’s Speech.

As the right hon. Gentleman knows, the PACCAR review involves complex issues, and it is important that we take the time needed to get it right. Great care is being taken to ensure that proposals for the opt-out collective actions balance the need to preserve a route to redress for consumers with ensuring a proportionate regime for business. As I said in my previous answer, officials would be happy to discuss this issue further with the right hon. Gentleman.

9. What steps his Department is taking to help small and medium-sized businesses trade with European nations. (900074)

We are helping SMEs do more trade with European countries by taking down tariff and other trade barriers in our EU-UK summit, reducing red tape in individual countries, enabling easier business travel and allowing the mutual recognition of professional qualifications, both across the EU and bilaterally. I look forward to the hon. Gentleman welcoming that.

I always welcome the cutting of red tape and I await the details excitedly. My North Cornwall constituent, Hannah Willow, runs two art businesses. Prior to Brexit, around 30% of her sales were to customers in Europe, but this has now fallen to 10%. As a result of recent tariffs on trade, her exports to the US have also declined by 20%. Now, adding insult to injury, the de minimis threshold will be removed from 1 July this year. That means that items valued at under €150 entering the EU will no longer be exempt from customs duty and will incur a flat €3 fee per item. Will the Government take up the Liberal Democrats’ call to negotiate a bespoke customs union and finally put our small businesses back at the heart of economy, where they belong?

I am afraid that I am not going to take any ideas from the Lib Dems on this matter—I think I can pretty much unite the House on that. One of the things I am very keen on is that we maintain our position as the second-largest art market in the world. That means that we have to negotiate better agreements, including with the European Union. That is one of the things we are doing at the moment.

The hon. Gentleman makes a fair point about the de minimis rule, but I notice that other businesses in his constituency are doing well. Tarquin’s Cornish Gin is doing well; it has been winning awards in the United States of America and elsewhere—I understand that it is the best gin in the world.

Of course, the work that my hon. Friend the Member for Stockton North (Chris McDonald) is doing on critical minerals is bound to benefit Cornish lithium. We are very keen to ensure that we have that capacity in the UK, rather than the lithium just being processed in other parts of the world.

10. What progress he has made on implementing the steel strategy. (900076)

16. What progress he has made on implementing the steel strategy. (900084)

Since publishing our steel strategy on 19 March, we have published provisional product scope and quota volumes for the new steel trade measures; further reduced electricity prices for steel companies from 1 April through our network charging compensation scheme uplift; confirmed that some steel companies will be part of the British industrial competitiveness scheme; announced new transparency requirements on the origin of steel in public procurement; set up a cross-Government working group on scrap; and introduced—today—the Steel Industry (Nationalisation) Bill.

Last week, Sev.en Global Investments announced a £100 million investment into 7 Steel UK in Cardiff, a site that I have recently visited. Do the Government agree that that investment shows our plan to prioritise a modern steel strategy is paying off for jobs and growth while putting working people in Wales and the rest of the UK first?

I do indeed agree. The £100 million investment in 7 Steel UK is welcome news, but I met the owners of the business, and they told me that they were able to release that investment only because of the confidence they had in the Government’s approach following the publication of our steel strategy. That is a direct correlation between Government action and £100 million-worth of investment in Cardiff.

I know that my hon. Friend has been a strong advocate of the steel industry. There is an opportunity later today for Members of the House to decide whether they are on the side of the steel industry or not. I encourage the Opposition to put their ideology aside just for a moment and get behind the steel industry this afternoon— I know that is difficult when a Bill has the word “nationalisation” in its title.

May I put on record my thanks to Ministers and the Department for their ongoing excellent engagement with me and my local businesses on the steel strategy? Many of the downstream businesses in my Stourbridge constituency currently import products—including zero-carbon steel—that are not produced in the UK. What steps is the Minister taking to ensure that businesses like those in my constituency are not unfairly disadvantaged by the quotas and tariffs being introduced under the steel strategy in a few weeks’ time?

I thank my hon. Friend for raising issues with businesses in Stourbridge when we met earlier this week; I am happy to continue to work with her. The measures we have introduced, which are primarily to protect the UK steel industry, are targeted at steels that are made or can be made in the UK. There are sometimes difficulties where a product code covers multiple steel grades, but that is what the quota system is intended to deal with, and of course there will be a review in 12 months’ time.

Further to the question from the hon. Member for Stourbridge (Cat Eccles) and my question to the Prime Minister yesterday, I am sure the Minister is aware that lots of manufacturing businesses are, frankly, screaming about the damage that the tariffs are going to do in five weeks’ time. Will he please consider an extension of the transition period to two years to allow three things to happen? First, it would allow UK steel capacity to grow in order to cover the gap. Secondly, it would allow quotas to be set correctly, so that UK businesses are not disadvantaged in the absence of UK production capacity. Thirdly, it would allow us to work out how it can be fair that somebody importing steel into the UK to produce a product pays tariffs, but somebody importing a finished product from overseas that is made from the self-same steel does not face tariffs.

I thank the right hon. Gentleman for his comments. I believe we have had representation from Stannah, the stairlift company based in his constituency. It is important to say that the Government take action like this reluctantly, but ultimately there are distortions in the market around steel. The EU taking action itself would lead to the UK becoming a dumping ground for cheap steel flooding in from overseas. We have taken a very carefully balanced approach and consulted carefully with the industry. I continue to receive representations, and, as I said, there is an opportunity for a review of the measures in 12 months’ time.

May I gently but urgently reiterate the previous two questions? Sam, one of my constituents, has raised Dynamic Metals, an independent British supplier working on specialised steel and metals for aerospace and motorsports. We have to champion those industries in this country. From 1 July, his business will see import tariffs go from zero to more than £3 million. That is pretty much insurmountable, and this policy could have an awful impact on industries that we must champion. Will the Minister consider the points raised in the previous two questions, as well as extending the deadline and meeting my constituents and those of many others in order to understand the full impact? That way, we can stand up for our industries and support our steel partners.

I am not familiar with the situation with Dynamic Metals. I was just having a discussion on the Front Bench with the Minister for Trade, my hon. Friend the Member for Rhondda and Ogmore (Chris Bryant), and if the hon. Lady writes to him, he will look carefully at the matter she has raised.

I call the shadow Minister.

I will carry on with the same theme, because it is clear from all sides that there are real issues with the element of the steel strategy that imposes a 50% tariff on 1 July. It is affecting manufacturing businesses up and down this country, and it is being done in a way that not only threatens manufacturing jobs, but increases inflationary pressures. Can the Minister tell the House what impact assessment he has done on the effect of these measures on inflation and on jobs?

I reiterate the point that the action that the Government have taken has been to correct an issue in the market. We have taken wide representation. In fact, we amended the list as a result of some of that representation. The shadow Minister’s point about inflation goes exactly back to the point that I made earlier. This country cannot be in a position where we say that we are prepared to buy the cheapest thing, wherever it is made in the world, to the sacrifice of our own industry. We cannot allow foreign Governments’ industrial policies to drive our own industrial policy. That is why we have taken this action—similar action to that taken by the EU. It comes down to a question of whose side are you on. Are you on the side of British industry, like the Government, or are you on the side of overseas industry? That seems to be the case being prosecuted by the Opposition.

11. What steps he is taking to support pubs in Bromsgrove constituency. (900077)

Pubs in Bromsgrove are vital to the local economy, supporting jobs and bringing communities together. I welcome success stories such as the Gate at Bournheath being named Bromsgrove and the villages’ pub of the year 2026, highlighting the strength of the sector. The Government are committed to backing pubs with permanently lower business rates for eligible retail, hospitality and leisure properties, and an additional 15% relief for pubs. We have also significantly increased the hospitality support fund to £10 million to help businesses invest, grow and remain resilient. That fund will help more than 1,000 pubs to diversify their business models, improve efficiency and productivity in the sector, and support people who are furthest from the labour market to move into jobs in hospitality.

I thank the Minister for her response, but I am afraid that the picture she paints is not one that pubs across my constituency will recognise. A typical pub in my constituency is paying around £2,500 in additional costs a month compared with two years ago, because of a rise in energy costs, employment costs and business rates. If the Minister is serious about supporting the hospitality sector, will the Government look at a permanent cut to business rates for pubs and exempt pubs with accommodation from the overnight levy?

I understand that rising energy prices and the wider supply chain effects can place particular strain on sectors such as pubs and the wider hospitality sector, which often rely on that discretionary spending, and operate on tight margins. I have met lots of such businesses up and down the country over recent weeks, and I know that the current situation with energy prices, especially given what is happening in Iran, is causing a lot of concern. Across Government, we are considering carefully this area as part of our ongoing assessment of economic conditions and support mechanisms. We absolutely want to support our pubs and the hospitality sector, as they are vital to our local communities and high streets. It is vital that we provide the economic stability that we have shown this year, ensuring that the economy can keep growing, wages can rise, and people can have money to spend to support our pubs and our hospitality sector.

12. What steps his Department is taking to support the hospitality industry. (900078)

The Government recognise the vital role that hospitality plays in keeping high streets vibrant, driving footfall, supporting local jobs and sustaining town centre services. We know that many businesses, including the Swan Hotel, Bar and Grill in Maldon, are still facing real pressures, which is why we have delivered permanently lower business rates for over 750,000 retail, hospitality and leisure properties, alongside a £4.3 billion support package, including transitional relief, to help firms to remain on the high street, invest and grow. Later this year, we will bring forward a new high streets strategy, developed with businesses, to support regeneration and help town centres to thrive.

Despite what the Minister says, hospitality businesses in my constituency, and the constituencies of my hon. Friends, are reeling from the impact of higher energy costs, and increased national insurance contributions and business rates. These businesses are making it clear that if there are any further increases, they will simply not survive. Why are the Government pressing ahead with another tax in the form of the overnight visitor levy, and will she talk to businesses before proceeding with that?

The right hon. Gentleman will know that the decision on the overnight visitor levy is down to mayoral authorities. They will work really closely with businesses and stakeholders in making that decision, but he raises an important point. I recognise the significant pressures facing pubs, hospitality businesses and breweries, which are facing sustained cost increases. We are closely monitoring the potential impact of disruption to trade and the wider economy, because our priority is to keep prices down for households and businesses. Going forward, we will build on our work to cut energy bills and crack down on unfair profiteering. The new framework that we have announced will help regulators spot trouble early and protect consumers, and we will work with businesses on that. We understand and recognise the pressures, and we will work really closely with businesses to support them.

This week, I hosted the British Beer and Pub Association in Parliament. It has more than 20,000 members across the country, including Camerons Brewery in Hartlepool. Among the many issues that it raised was this summer’s football world cup. In other parts of the UK, late licences are being permitted for all games, but in England and Wales, they are only for England and Scotland games. Will my hon. Friend make representations to her ministerial colleagues about allowing late licences for all games, so that we back our pubs and celebrate this festival of football?

I thank my hon. Friend for raising such an important point. I am looking forward to getting out to the pub and supporting England in the world cup. His point about licensing is really important, and we will work closely with colleagues across Government on that.

I call Harriet Cross—not here.

T2. If he will make a statement on his departmental responsibilities. (900100)

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.

T4. Carlisle is a great city. It is not, however, Leeds, Newcastle or Manchester. The challenges that hospitality businesses face in constituencies like mine are different. In the last couple of months, I have met two such businesses—a pub that has doubled its turnover in the last four years, but still cannot turn a profit; and a business offering fine dining that has been able to retain a full complement of kitchen staff only because its world-leading chef has taken a pay cut. Will the Minister set out how the action the Government are taking will help businesses in constituencies like mine, and will she meet me to discuss the particular challenges— (900102)

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.

T5.  Bradford is a proud multicultural city, and we celebrate all the good that diversity brings. We speak over 100 languages, and I am sure you will agree, Mr Speaker, that we have the best cuisine in the country. We hosted amazing events as the city of culture last year. We have one of the youngest populations in the country, and one of the highest business start-up rates. What further steps will this Government take to boost our economic growth, and provide support for our young people and, in particular, business start-ups? (900103)

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.

T6.  I was delighted recently to host the hospitality Minister, the Under-Secretary of State for Business and Trade, my hon. Friend the Member for Halifax (Kate Dearden), at the top of our iconic Blackpool tower, alongside our tourism CEO Kate Shane, to discuss the opportunities and challenges facing our visitor economy. Our tourism sector supports thousands of jobs, yet local small and medium-sized enterprises are being hit hard by rising costs and the pressure of a seasonal economy. But Blackpool comes to the Government not with problems alone, but with a clear credible plan. Does the Secretary of State agree that coastal towns require targeted economic support, and will he back our proposal to pilot a new tourism zone? (900104)

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.

T3.   JB Springs in Skipton has been in touch on the issue of quotas. It imports steel and is worried about the cost of steel and the future of the company. Personally, I do not have an issue with many aspects of the Steel Industry (Nationalisation) Bill, but the quota issue is really causing problems. Is there a structure enabling colleagues to meet people from the Department, so that businesses can communicate their worries? Will the Minister keep an open mind about the quotas and review them in less than 12 months? (900101)

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.

T7. I recently met two local businesses that have been hammered by the Scottish Government’s changes to business rates—Osborne Motors has seen its business rates increase from £185 a month to £695 a month, and Big Sky Campers in Rosyth has seen an incredible 470% rise from £180 a month to £1,025 a month—putting both businesses at risk. Does the Minister agree that those are ridiculous rises for small businesses to cope with? Will he assure me that he will do everything in his power to— (900105)

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.

T8. The Government’s new steel tariff and quota regime, due to come in in a few weeks, means that many businesses face a cliff edge. One in my constituency recently got in touch to tell me that it faces either a slow death or a swift death, and that it faces calling in the administrators before Christmas. Will the Minister keep an open mind about extending the transitional period, and will he agree to meet me and a very small number of my constituents who will be affected? (900106)

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.

T9. Bath has a thriving hospitality sector and many young people who need, rely on and, dare I say, enjoy part-time jobs to support their studies. Of course we Liberal Democrats support measures to tackle exploitative contracts—who wouldn’t?—but will the Government ensure that the reforms retain the genuine flexibility that students and other members of the workforce need for their work-life balance? (900107)

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.

Cornwall has so much to offer the UK—critical minerals, floating offshore wind in the Celtic sea, defence, geothermal energy—but infrastructure, particularly ports and rail, will be critical to enable growth. Cornwall is a perfect place to designate as an industrial strategy zone. Will the Minister agree to meet me and Cornish colleagues to discuss this?

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.