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.