Business and Trade
What recent progress his Department has made on implementing the Employment Rights Act 2025.
The Secretary of State was asked—
The Employment Rights Act 2025 is bringing employment rights into the 21st century, with phased implementation to give businesses and workers, including those in Cumbernauld and Kirkintilloch, time to get ready and understand their new rights at work. We have already repealed burdensome trade union legislation, strengthened statutory sick pay, introduced day one paternity leave rights and launched the Fair Work Agency. We continue to consult on measures such as zero hours contracts and non disclosure agreements to get the details right. Further changes will happen in October, including trade union reform and better protection from sexual harassment.
I draw attention to my entry in the Register of Members’ Financial Interests as co chair of the Unison group of Labour MPs. For too long, many workers have been expected to keep themselves available for work without any certainty over the hours or income that they would receive. The right to guaranteed hours was designed to change that. As those provisions are implemented, what practical difference does the Minister expect they will make to working people across the country?
Through the right to guaranteed hours, we are tackling one sided flexibility. Qualifying workers are offered contracts that better reflect their hours, and they can then plan their lives and finances. Over 1.2 million people work on a zero hours contract, and research published by the Living Wage Foundation in 2022 found that 87% of zero hours workers said that they want more hours in their contract. My hon. Friend will understand the terrible consequences and the impact that not knowing their regular hours or how much they will earn that month can have on people’s lives, including the severe impacts of not being able to feed their kids or know whether they can pay their bills. We are working to get the details right and to get businesses, workers and trade unions to engage in our recent consultation so that we can achieve both flexibility and security.
The Government’s impact assessment puts the costs of the Employment Rights Act at up to £5 billion, which will hit small and medium sized businesses since they lack the human resources teams and the expertise to absorb the additional burdens. What advice does the Minister give to small and medium sized businesses in my Mid Leicestershire constituency on how they should deal with that?
The hon. Member might not have read the updated impact assessment, which significantly lowered that amount, following the passing of the Employment Rights Act towards the end of last year, to £1 billion. On supporting small and medium sized enterprises, we want to work closely with them because many across the country are already doing lots of the things that are in the Employment Rights Act. They also understand that treating their workers fairly benefits their business and makes the economy grow. I am grateful to the small and medium sized businesses that I have worked with and which fed directly into the details of the Act. I want to work closely with them to understand the impacts and where we can get this right, and to work on the details. I thank them for their engagement, and I look forward to continuing to work with them.
I call the shadow Secretary of State.
Today, we Conservatives have launched a campaign to save the summer job. Employment rights do not help young people if they cannot get a first experience of work, and they are trapped in a Catch-22 situation of needing experience to get work but not being able to get any during their education years. Young people say it, businesses say it and Alan Milburn, the former Labour Minister, says it. Will the Government now back our plans to save the summer job, cut employment red tape, support seasonal working and lower taxes?
The Opposition’s suggestion of getting 13-year olds to work later hours on a Sunday is simply not serious. What is serious is the review that we have conducted with Alan Milburn on how we can get more young people into employment. We recognise the challenge, and that is why it is an important priority for us. We inherited a situation in which nearly a million young people were not in employment, education or training. That increased by 250,000 before the general election, and the Conservatives did absolutely nothing about it. Young people written off by a legacy of rising youth inactivity and declining apprenticeship jobs. That is why we are serious about this. I appreciate and welcome Alan Milburn’s review, which is detailing how we can improve the situation. He has looked at the challenges that we are facing and laid bare the scale of them. We have already taken action to help young people by bringing forward the biggest youth employment reforms to create 500,000 opportunities for young people through our £2.5 billion youth guarantee, and we will continue to do more.
I call the Liberal Democrat spokesperson.
Research by the British Retail Consortium found that over two thirds of part time workers in the retail sector took the role because they needed flexibility around educational and caring commitments. The number of young people not in employment, education or training is over 1 million. Liberal Democrats repeatedly warned that Labour’s jobs tax would hammer job opportunities for young people and that its business rates hikes would kill off opportunities on the high street, which gives so many young people their first job. As they implement the Employment Rights Act, which will introduce some welcome measures for employees, how will the Government ensure that this is not yet another burden that prevents businesses from being able to provide entry level and flexible jobs?
I am glad that the Liberal Democrat spokesperson welcomes parts of the legislation, but I wish she would not repeat lines from the Conservatives, who broke our economy and destroyed our labour market. That is why the Act is so important: it will fix problems, particularly the problem of people being in insecure work, which does not grow our economy and will not provide the stability that we need.
I thank the hon. Lady for mentioning flexibility. The problem occurs when flexibility is one sided and workers bear all the financial risks. That is why, as part of our consultations, particularly on zero hours contracts, we want to get flexibility and security right, so that we can rebalance them. We are working closely with employers, including in the retail sector, to understand how best to get that balance right, so that it benefits workers and businesses, too.
Resilience is vital in all our supply chains. That is why we have launched the supply chain centre, which will help to strengthen that resilience. War, extreme environmental events and the deliberate or accidental closure of shipping routes can affect everything from agriculture to construction in the UK. We want to do everything we can to predict, assess, minimise and mitigate those risks.
We have already seen the vulnerability of our economy to global supply chain shocks from the impact of wars on food, fuel and fertiliser prices, but scientists now warn that we are likely to be heading into a super El Niño—a global heating event that will trigger extreme weather around the world, threatening fish stocks and agriculture, disrupting the Panama canal and bringing climate induced fires that destroy vital timber supplies. How are Ministers preparing for those risks?
My hon. Friend is absolutely right to raise El Niño. We believe that it has already started, and we are conscious of the issues that may arise from it. We are closely monitoring it and trying to ensure that we have resilient policies in place in every single sector, including agriculture and fisheries.
I should underline that the launch of the supply chain centre is an important moment for us. For the first time, we will have a body that can anticipate future supply risks, identify the inputs the UK needs, build domestic resilience and foster resilience through global partnerships. Those are important ways of ensuring that the UK has strong supply chains.
I thank the Minister very much for his answer. As the Member of Parliament for Strangford, I am particularly concerned about the problems that the Windsor framework has created for those trading across our borders and between our ports—he has answered my questions on this on other occasions. Businesses continue to report increased costs, administrative burdens, disruption to supply chains and delays. As a result, businesses have stopped trading into Northern Ireland. Given the likely negative economic consequences of that, will the Minister consider further steps to reduce those burdens and ensure smooth trade into Northern Ireland?
We are doing that all the time, and that is why we bring the issue of resilient supply chains into consideration in all our international trading relationships. For instance, particularly important to Northern Ireland is our relationship with the European Union, to which the hon. Gentleman referred in mentioning the Windsor framework. I am keen to ensure that resilient supply chains are looked at in the relationship between the EU and the comprehensive and progressive agreement for trans Pacific partnership, because it is not just what happens on the continent of Europe that is important; it could be what happens in the Gulf or the situation in Ukraine, which had dramatic effects on supplies of fertiliser around the world. We take specific action to ensure that we guarantee those supply chains.
I call the shadow Minister.
Our most critical supply chains are those that are directly linked to our national security. From autonomous vehicles to blast protection, British small and medium sized enterprises are the vital link in the supply chain, ensuring that our armed forces have the capabilities to face down our adversaries. The Government have said that the Defence Office for Small Business Growth has an important role to play in supporting the sector, so how is the Minister co ordinating with the office? If I am a defence SME, how will it help me?
What is really important is the work that the Department for Business and Trade does in knitting together all our different policies—for instance the trade strategy, which looks at these issues, the critical minerals strategy, the small business strategy and the industrial strategy. All those need to mesh together. One of the key things we have done is to produce, for the first time, a growth driving inputs list that specifies the particular elements that are vital for SMEs’ growth into the future. That is precisely the kind of action that a Government need to take to guarantee economic growth for the future.
I am grateful for that very comprehensive answer to a very different question—less of an answer, more of an interpretive dance.
What’s wrong with interpretive dance?
I just want an answer! Defence SMEs have said that the delay of the defence investment plan caused great uncertainty and disruption to the sector. In addition, they are completely confused by this Government’s endless offices, initiatives and quangos. Will the Minister commit—if he is still in position in a few weeks’ time—to providing more certainty to such an important sector?
I know from my constituency and across south Wales how important it is to have a defence investment plan that delivers jobs across the whole of the United Kingdom. One of my anxieties about the previous Government was that they refused to take action either to invest in our armed forces or to ensure that we were able to produce things in the UK, rather than relying, for instance, on steel to produce everything that our armed forces need. That is why we introduced our steel trade measures earlier this week.
And there is nothing wrong with interpretive dance, Mr Speaker. As you know, the creative industries are an important part of our economic future, with 5% growth under this Labour Government.
I thank my hon. Friend for raising this vital sector for island economies. Whisky exports were worth over £5.4 billion in 2025, supporting jobs and supply chains across Scotland. We are supporting distillers through UK Export Finance, DBT’s export support, trade promotion and direct engagement with the industry to help businesses, including small distilleries, to grow, invest and reach new markets.
Distilleries in my constituency—I count nine of them—overwhelmingly rely on kerosene heating oil to make their product. Since President Trump’s folly in Iran, they have seen costs rise by 18%. It is not just the distilleries; seaweed manufacturing, chemical processing at Callanish and the iconic Harris tweed industry all rely on kerosene heating oil to make their products. Domestic consumers in the islands are helped by generous support from the Government, but can the Minister outline what the UK Government can do to help these energy reliant industries that keep hundreds of jobs in Na h Eileanan an Iar keep on going?
My hon. Friend knows that at this time of year, my heart is in Uist, and I wish I was there now sampling a gin cocktail from the Downpour distillery—my favourite of the nine distilleries he mentioned. We are determined to support energy intensive industries such as his local distillers. The supercharger for British industry is being reviewed this year, and we are keen to hear from the whisky industry as we review that support. As he says, many distilleries are off grid and heavily reliant on heating fuels, and are suffering from the Iran war. That is why we are considering the temporary suspension of tariffs on kerosene oil. The consultation on that ended a few days ago, and we will make a decision on it in due course.
Earlier this year in my constituency, the much loved brand Slingsby Gin went into administration. A cocktail of different things added to the pressure on the business. Will the Minister wish the new owners of Slingsby Gin, Chris and Asma Williams, good luck in their new venture, and tell me what steps the Government are taking to support them going forward?
I absolutely wish the hon. Member’s constituents all the best. It is entrepreneurial spirit like that that drives the economy forward. I will give one example of the support: there is a big extension of UK export finance so that such businesses can find new markets, because the best way to become a more resilient business is for them to open up and diversify their markets. I will gladly put his constituents in touch with people at UK Export Finance to discuss that.
Strong delivery of the 10-year modern industrial strategy is ongoing, including the investment in the British industrial competitiveness scheme—the long term industrial intervention to address energy costs. We also have the advanced manufacturing sector plan, which includes sector specific cross cutting measures to support manufacturers right across the United Kingdom.
The Secretary of State will know very well that Glasgow South West is home to a storied, nationally significant collection of advanced manufacturing, from Type 26 frigate construction at BAE Systems, to small satellites at Craft Prospect, to the maritime supply chain at the Malin Group. What conversations is the Secretary of State having with businesses in Glasgow and Glasgow South West specifically about how we can grow this advanced manufacturing base, so that Glasgow can play its full part in Britain’s reindustrialisation?
I am really grateful to my hon. Friend for highlighting the extraordinary achievements of our country that have stemmed from his constituency. As he knows, on the Clyde they have adapted from manufacturing the Dreadnought through to the frigates that he mentioned. We are in another era of change, and the Government are on their side in this latest transformation. They will have access to a range of sector focused interventions from the industrial plan, as well as support for access to finance, innovation and tech adaptation. He will also be aware that the Glasgow city region will receive £50 million through the local innovation partnerships fund—a fund that I launched when I was in my previous job at the Department for Science, Innovation and Technology. I am pleased to see it being put to good use in his constituency.
The largest employer in Woking is McLaren. It sells around half of its cars to the US, which, needless to say, has not been easy since Donald Trump took office. What are the Secretary of State and his Department doing to work with the US to lower trade barriers, so that we can continue to have high quality advanced manufacturing jobs in Woking?
I am grateful to the hon. Member for championing what is an extraordinary company. I met the chief executive of McLaren just in the last week, and I will be meeting him again in the next couple of weeks. This is a Government who are on its side—of course, we got tariffs reduced to 10% for 100,000 cars. I have spoken to my counterpart in the United States, the Commerce Secretary, numerous times about the fantastic cars produced in our country, both the high volume mainstream products and these high value precision products that do our country proud. I can tell the hon. Member that the deal we have struck with America does those businesses proud too.
I call the shadow Secretary of State.
This week, our hard pressed automotive industry has sounded the alarm: under the zero emission vehicle rules, British car makers are being fined for making precisely the type of cars people want to buy. That is costing them £5 billion a year, denying consumer choice, damaging British jobs and putting automotive firms at risk. Like me, the Secretary of State met with car makers earlier this week, so will he listen to them, adopt the Conservative policy of scrapping these rules and support our great British automotive industry?
I am very grateful for the hon. Member’s question because he raises important points. First, we are a listening Government, which is why we have acted to tackle the energy costs faced by the automotive sector—of course, we inherited those energy costs from the Tory Government. The BICS will lower the cost of producing cars in this country.
The hon. Member mentioned the ZEV mandate. I am listening very closely to him on that. In general terms, when it comes to environmental regulations across the piece, it is really important that we deliver net zero targets and get to that destination. We need to be creative in how we get to that destination, and I speak in general terms. He spoke to the automotive sector earlier this week, as I did. I was very honest about these issues. He should have been honest, too: his party brought in the rules in the first place—he should have apologised for them if he does not like them.
We are taking two steps to try to drive up our trade with Europe. First, we are seeking bilateral wins with individual countries like the small modular reactors deal that has just been done by Rolls Royce in Sweden, or opening up the pilot digital trade corridors that we have with Germany and France. We are also seeking to renegotiate a reset with the European Union as a whole. In the words of the Sugababes, we stand ready to “Push the Button”.
The EU is a key trading partner for Scotland, accounting for almost 40% of Scotland’s international exports. Can the Minister reassure my constituents in Glenrothes and Mid Fife that while we wait for a new date for the EU summit, this Government will press ahead with plans to align with more areas of the single market, so that we can continue to remove barriers for our businesses to trade with Europe?
My hon. Friend is absolutely right, not least because in the most recent figures, our trade in goods with Europe has fallen by 2% in the last year, whereas our trade in services has grown by 7%. All of this shows what a shockingly appalling, shameful, despicable deal was done by the previous Government with the European Union. It was bad enough leaving, but the terms on which they left were absolutely appalling for British businesses. We are determined to turn that around, and we will.
Ten years on, Brexit continues to have a detrimental impact on Scottish businesses to the tune of almost £4 billion in lost revenue per year. Forty per cent of businesses say that Brexit is the main cause of trade difficulties. One of the worst hit sectors is farming, and lots of farmers in my constituency have written to me—even in the last two weeks since I was sworn in—to tell me that Brexit continues to put up barriers to business and trade, including through labour shortages, trade friction and long term uncertainty over subsidies. At a time when food insecurity and the cost of living cannot be disentangled from the experience of farmers, what is the Minister doing to support farmers in my constituency to produce the food that we need at this crucial time?
I want to recruit the hon. Lady to my campaign to make sure we end up with a better deal with the European Union, so that UK farmers can export easily and readily into the European Union and we can get goods from across the rest of Europe into the UK easily. So many sectors are affected. I sat down yesterday with Tracy Emin, one of the world’s greatest artists, who explained to me the problems since Brexit in bringing artworks in and out of the European Union from the UK. Resolving those problems is an important part of ensuring that we remain the second biggest art market in the world—again, part of the creative industries, which we should be supporting.
I call the Liberal Democrat spokesperson.
Joining the single market and a customs union could boost UK GDP by about £25 billion a year. Single market membership would give the UK access to EU defence programmes, creating high skilled jobs in aerospace, advanced manufacturing and defence technology. It would restore passporting rights for financial services, reducing costs and administration for firms operating across Europe. For businesses, joining a customs union would eliminate the rules of origin red tape that adds between 2% and 8% to the cost of exporting.
The current Prime Minister and Chancellor have both admitted that repairing the relationship with Europe is the biggest lever they could pull for growth, and the incoming Prime Minister has stated his desire to rejoin the EU, so does the Minister agree that there is political momentum and a desperate economic need now to negotiate a new growth and defence partnership with Europe?
I do agree on the broad principles, but the Lib Dems were part of the coalition Government who created the momentum toward the Brexit referendum in the first place, so I am not going to sign up to any Liberal Democrat campaign. We are going to make sure that we reset the relationship with the European Union.
The Department has not provided guidance on that matter. Fees relating to the accreditation and monitoring of alternative dispute resolution providers have not risen since 2015, and have been significantly eroded by the impact of rising costs. The intention behind the new fee structure is to ensure that, over time, fees are commensurate with the costs of the Chartered Trading Standards Institute performing the relevant functions to the required standards, that they are predictable for ADR providers, and that they provide costs recovery for the CTSI.
I thank the Minister for that response. Caroline from Lindfield owns a small business that provides arbitration services. Since the introduction of the one size fits all fees set down earlier this year, her business model and that of so many other small ADR providers has become nigh on impossible to sustain. Has the Minister considered the impact on the sector from the fee changes? Can she explain why no impact assessment has been done? In particular, has she received feedback from trading standards since the legislation came into force?
I thank the hon. Lady for her question. A well functioning ADR system makes markets work more effectively and drives economic growth. We are committed to ensuring that consumers and businesses are able to resolve disputes early, which helps to raise consumer confidence and compliance rates. We acknowledge that there will be a period of adjustment as the new fee structure beds in, and in the autumn we will conduct a review to assess whether the fee structure should be amended further. We recognise the importance of ensuring that charges are fair and proportional for all ADR providers and the CTSI as the competent authority.
We are investing £2.5 billion over the next three years in tackling the issues around youth unemployment. That will include new initiatives, such as a further 19 technical excellence colleges to provide high quality training for jobs in key sectors.
I recently met people from Mission Employable, an incredible charity based in Chorleywood, which offers supported internships for young people with special educational needs and disabilities. It was deeply concerning to hear that in England only 6% of adults with learning disabilities are in paid work. Will the Secretary of State outline how he is working with other Departments to ensure that the youth jobs grant does not disincentive employers in hiring people from supported internship backgrounds who are not claiming universal credit?
The hon. Gentleman raises an incredibly important issue. It sounds as if the charity that he references is doing incredibly important work locally. We want to support that work. It is a shame that in the years running up to coming into office, apprenticeship starts had fallen by 40%. We are reinvesting in apprenticeship starts and ensuring that they are available to everyone, from every background and with every ability.
While still at school, I played my part in the creative industries by playing in bands with names as louche as Street Lethal and Cheap Sweeties. It was very lucrative.
Give us the opening line!
I’ve got it! In the modern era, that all important first job is increasingly hard to find because of the Chancellor’s jobs tax and the massive 330-page Employment Rights Act 2025. Will the Secretary of State go to the new northern powerhouse Cabinet and impress upon the Chancellor the need to save our summer jobs and cut the burden on industry?
I am glad to hear about the hon. Gentleman’s childhood experiences. In retirement, perhaps we will see him in the musical “Mama Mia!”. My first job was on a battery chicken farm collecting eggs, so I hope that I can take a different path when I move away from the current profession. I assure him that not only are we are investing £2.5 billion but we are working across Departments to ensure that 400,000 students in disadvantaged schools will take up AI and tech skills through the tech first programme. These are the kinds of initiatives that we are wrapping around young people so that they get support for the age in which we are living. Extending the hours for 13-year olds is not a serious solution to the challenges we face, but that is the only answer that we have heard from Members on the Conservative Benches in recent times.
Small and medium sized enterprises are often best placed to kick start a young person’s career, but when I met a group of small business owners at the Crown pub in Granborough, many told me that the up front costs of training and supervision often act as a barrier to taking on young people. Will the Secretary of State update the House on what support the Government are providing to incentivise small and microbusinesses in helping to give opportunities to young people?
My hon. Friend makes a really important point. We have created a specific fund to support SMEs and young people to start up businesses. It is incredibly important that people from all backgrounds get to explore their entrepreneurial talents, and that is exactly what this Government are doing to make that happen.
We are investing £720 million in the greater Lincolnshire investment fund over the next 30 years as part of our devolved funding and support for areas just like my hon. Friend’s.
News of apprenticeship incentives, the youth jobs grant and the jobs guarantee will provide a welcome boost for my brilliant young people in Great Grimsby and Cleethorpes, but they and other jobseekers will want to know what permanent jobs they can move into. We have huge opportunities and experience in new clean energy and the supply chain. What action is the Secretary of State taking to expand existing businesses and attract new investment in this sector to deliver jobs for my hard working constituents?
My hon. Friend is right that her constituents are hard working and they deserve to have a Government on their side: in this Government, they have that. We have invested £140 million in a pilot with the mayoral strategic authorities that will benefit her area. That will connect 16 to 24-year olds who are not in education, employment or training to local apprenticeship opportunities in her area. We are also investing £2.5 billion in the youth guarantee and the growth and skills levy over the next three years. NEETs rose by 250,000 under the Tories and we are doing everything we can to get that down, including in her area by providing specialist advice via the Business Lincolnshire growth hub.
I thank my hon. Friend for his continued advocacy for young adult carers. I have been honoured to visit Carers Count Calderdale in my own constituency of Halifax, and I know about the important and vital support that incredible unpaid carers across the country are providing to their loved ones. We are reviewing the employment rights available to them, including through a public consultation that launched last month and which is currently open for views. We are considering the merits of additional support, including paid leave, improved guidance and a right to return, while remaining mindful of any potential impacts on businesses.
I thank the Minister for her commitment to unpaid carers. I speak to unpaid carers across my constituency all the time, and I personally thank them for all that they do in caring for loved ones and in the wider community. However, so many unpaid carers I speak to tell me that they struggle to hold down a job, and many of them have had to give up really important careers. I absolutely welcome the Government’s commitment to a review, which has the potential to be absolutely transformative, but does the Minister agree that we must continue to support unpaid carers in Harlow and beyond?
My hon. Friend is absolutely right to highlight the vital contribution that unpaid carers make to their loved ones and their communities, and the experiences of families in his constituency reflect the challenges faced by unpaid carers across the country. We want to ensure that carers can remain in work and fulfil their potential. Through our review, we will ensure that we are backing our unpaid carers to balance work and care, as well as the employers who support them in the workplace.
It was a pleasure to hear the hon. Member’s contribution in the recent Westminster Hall debate on seasonal hospitality businesses, including those in his constituency. We are delivering permanently lower business rate multipliers for more than 750,000 retail, hospitality and leisure properties. That is backed by a £4.3 billion support package over three years, which includes transitional relief to protect businesses from large bill increases following the re evaluation. We have increased the hospitality support fund to £10 million over three years, building on the previous scheme, to support larger, longer term projects. I am committed to working in partnership with industry and across Government to support growth and resilience, including through targeted support measures and engagement, such as with the Hospitality Sector Council.
As welcome as that is, and I am not crying wolf, the hospitality sector faces a very high risk of substantial business failure in the next 12 months as a result of the tax burdens that it has to face simply for attempting to survive, rather than a tax burden to help it succeed—in other words, shifting from VAT and business rates to corporation tax. Will the Minister look again at this issue before real catastrophe comes to the sector? Will she talk to Treasury Ministers and find a way out of this extremely serious situation?
Unfortunately, we inherited an absolutely dire situation from the Conservatives when they left office. They left deep scars on our economy from a decade of stagnant growth. We know that hospitality thrives when our economy grows, wages rise and people have money to spend, which is why we are absolutely committed to supporting businesses and working closely with them. The hon. Member will know that the Government need to consider a wide range of factors when introducing new tax reliefs, such as whether they support wider Government objectives. He will also know that the Government keep all taxes under review as part of the policymaking process, and the Chancellor will announce any changes to the tax system at fiscal events in the usual way.
The Northampton based McManus Pub Company runs 18 pubs and employs 370 people. I spoke to Tom McManus yesterday, who told me that successive Governments have ignored hospitality and that in the past five years business costs have made it harder for him to turn a profit. Tom has asked me to lobby the Government to cut VAT to 10%. What message does the Minister have for family businesses such as Tom’s?
I thank my hon. Friend for his question, for raising the preferences of businesses in his constituency and for his continued engagement on this issue on behalf of his constituents. He will know of the recent announcements on the temporary great British summer savings scheme, which will reduce VAT from 20% to 5% on selected hospitality activities between June and September. He will also know that we keep all taxes under review. He should say to his constituents, and particularly to his businesses and pubs, that we are absolutely committed to working with the industry and the sector to support them to thrive. They are vital to our local communities, people and jobs, and I know that he knows that too.
Harry Kane’s heroics last night mean that many England fans are looking forward to an early morning or a late night on Monday, depending on one’s perspective. That is a good thing, but pubs risk missing out on a real opportunity to get more money into the till if Ministers do not make a blanket extension to licensing hours. Will Ministers consider that with their colleagues in other Departments so that fans can enjoy the game in the pub?
I pay tribute in this House to the incredible Harry Kane, our captain, for his performance last night—he calmed my blood pressure—and we will be championing the boys on Sunday. The hon. Gentleman will know that pubs can stay open for an extra two or three hours depending on how late the match starts, so that they can still be open when the game finishes. Unfortunately that does not apply to Sunday, given the 1 am start, but going forward we are backing our pubs so that people can watch and support our lads. It’s coming home, hopefully.
Titanic Brewery, based in Stoke on Trent, makes a fabulous pint—I highly recommend the plum porter. However, the Minister will know that as an independent brewery, access to market is quite difficult because of the way that tied pubs insist that landlords buy their products. Could the Minister make an announcement before the summer recess on the access to market scheme, and in particular the guest beer arrangement that would allow 1,500 SMEs access to market? It would not cost the Government anything, and the Minister could find that lots of people raise a pint to her over the summer.
I sincerely thank my hon. Friend for his continued engagement—I know how important the issue of market access for our breweries is to him. I was delighted to meet him and colleagues across this House recently, and I look forward to continuing to engage and work with them as the Government consider the evidence ahead of any announcements.
The hospitality sector remains a major UK employer. It supported around 2.1 million jobs last year, or around 6% of total employment. Employment has grown by over 18% in the past decade, and although growth has stabilised more recently, that follows a period of strong expansion, reflecting the sector’s continued importance to local economies and youth employment. I know myself how vital the sector is for first jobs—my first job was in a café, and that opportunity gave me the skills to go on and succeed in my career. We are supporting jobs through skills investment, including new hospitality apprenticeships, incentives for SMEs to recruit young people, and sector based work academy programmes to help people into work.
I thank the Minister for her answer and the positive news about the sector apprenticeships. Hospitality is critical in Salisbury as we move towards our 800-year celebration next year, but last summer there was a 25% drop in temporary work in the sector, and the cost of employer national insurance contributions for part time workers in the sector—those working 15 hours—increased by 73%. I say respectfully to the Minister that I recognise that tough decisions have to be made in the Treasury; I was there for seven years, and was part of those decisions. However, this sector is under real strain, and part time jobs for the youngest workers are not there at the moment. Something quite significant needs to change in the Government’s approach.
I thank the right hon. Member for raising the vital role that the hospitality sector plays in providing those first jobs and opportunities for people. I work closely with hospitality businesses, and I am really keen to continue to listen to them, to understand the challenges they face. I know that the right hon. Member will welcome our youth jobs grant, which was launched this week and is open for applications—that was welcomed by the chief executive of UKHospitality. We want to keep working with those businesses, and I thank them for their engagement so far on how we can continue to support them to crack on with the brilliant opportunities they provide in communities across the country.
When it comes to international deals, we regularly fight determinedly for the farming sector and the wider food and beverage sector. Sometimes that means defending our UK farming and food standards, but just as often, we are able to secure significant advances; for instance, we have managed to secure increased access for British beef in the United States of America, for lamb and salmon in India, and for lamb and beef in the Gulf. We will always fight for the British farming sector.
The effects on farmers and food standards are some of the most visible and felt impacts of trade policy, and obviously domestic agriculture is one of our sectors that are most sensitive to import shocks. Does the Minister agree that transition periods are vital when the Government are negotiating international trade agreements? Will he commit to making sure that the farming sector is properly consulted on implementation and transition periods for any agreement that is made, and particularly the sanitary and phytosanitary agreement, and will he work across Government on that?
I commend my hon. Friend—since he has been in the House he has raised lots of issues on behalf of the farming sector in his constituency. Some of those are issues that need to come directly to Ministers, so that we can take action on them, and this is one of them. We are very keen to make sure that the SPS agreement is negotiated in a way that really works for farmers in the UK, but I would also apply that to any free trade agreement we were to sign up to. I am very keen to ensure we get good deals for British farmers, and as I say, we will always, always, always defend farming standards and food standards in the UK. Those are not negotiable in free trade agreements.
Farm profitability in the UK is incredibly low. As we know, for many farms it is less than 1%. Reports show that a poorly negotiated and poorly implemented sanitary and phytosanitary agreement could see a 10% hit to profitability for our arable farmers. That will have a trickle down impact across the whole agricultural supply chain, impacting many businesses UK wide. How is the Minister’s Department working with the Cabinet Office and the Department for Environment, Food and Rural Affairs to ensure that our arable farmers and the supply chain are not impacted?
We have regular conversations and at every stage, we are trying to ensure that we get the best possible deal that works for UK farmers. I just say gently to the hon. Lady that I was a Member in this House, representing a Welsh seat with many Welsh farmers, when the previous Government struck the deal with Australia and New Zealand. Welsh farmers, both in my patch and elsewhere in Wales, were absolutely furious, because it did not seem to consider their needs for a single instant.
This Government are determined to tackle the scourge of late payments, which closes down the equivalent of 38 businesses every day. The Commercial Payments Bill was introduced to Parliament on 19 May and had its Second Reading in the House of Lords on 9 June. This legislation sets out stricter maximum payment terms, mandatory interest on late payments and stronger powers for the Small Business Commissioner to ensure that small businesses are paid on time. That will give the UK the strongest legal framework on late payments in the G7.
Small businesses are at the heart of Altrincham and Sale West, and when I meet them, often alongside the Altrincham district improvement board, they tell me that one of the biggest problems they face is late payments. Can the Minister explain further how this Government’s action on mandatory interest rates and to force large firms to pay up within 60 days is a win for my high street?
My hon. Friend always fights hard for small businesses in his patch. This Bill will ensure that purchasers pay suppliers within 60 days and that mandatory interest is paid on late invoices. For too long, large businesses have used small businesses as a source of free credit. That will end under these plans. That will mean better cash flow for businesses in his constituency, more jobs, more economic growth and better high streets.
The UK was the fastest growing G7 economy in quarter 1 of this year, and we know that we will only achieve a thriving economy once people have a wage they can count on. We want to grow our economy with people in secure work. That is why we are giving greater certainty to more than half the UK’s workforce through our Employment Rights Act 2025 and putting more money in their pockets. External analysis by world leading experts shows that the Act could increase employment, and our impact assessment shows that it will benefit more than 18 million workers across the country.
The Employment Rights Act, the minimum wage and national insurance contributions are all making it difficult for employers to keep taking on new employees, or even to keep them at all. What advice does the Minister have for small business owners in Beaconsfield and Marlow having to make the difficult decision to either cut jobs or close their businesses thanks to this Government?
We are focused on fixing the issues in our labour market that the Conservatives neglected: poor working conditions, insecure work, inequality, the undercutting of good employers in brilliant SMEs, and the bad industrial relations that we inherited. Since July, real wages have grown. We have the third highest employment rate in the G7, and we are focused on backing our brilliant SMEs. They are the backbone of the community. I come from a small business family, and it provided me with that first job and opportunity. We want to get more people into work and to work with our SMEs, so that we can build that thriving economy where people have a wage so that they can get on.
I am grateful for the opportunity to say that one year ago we published our industrial strategy. Since publication, work driven by the industrial strategy has secured around £360 billion of private investment into the eight industrial strategy sectors and £33 billion worth of export announcements, supporting up to 120,000 jobs. We are backing winners and giving our sectors with the highest potential everything they need to succeed, and in year two we will go further. We will be cutting energy costs for 10,000-plus manufacturing firms, working with businesses to create jobs for those eight sectors—the IS-8—to secure the workforce of the future, and cutting regulatory burdens to unlock investment. In just under two weeks, on 15 July, our trade deal with India will enter into force. India has never implemented a deal of this size, which could boost UK GDP by £4.8 billion every year in the long run. That is just the start. We will continue to drive delivery to secure investment and good high paying jobs into year two and beyond.
Micklefield Hall in Sarratt is a great example of a small business that has survived covid, only to be repeatedly hit by this Labour Government. Its representatives have contacted me to say that they are keen to borrow money for long term investment, but fearful of yet more taxes on business. What reassurances can the Secretary of State give to small businesses that want to invest for future growth, such as Micklefield Hall?
It is good to see the hon. Gentleman again in the same session—I suggest that he buy a lottery ticket tonight, because he is certainly having a lot of success in the draw. I can assure him that we are investing in small and medium sized enterprises, and we have funding targeted at helping young people to start their own businesses. He lists some of the perceived challenges in the economy at the minute. Do not forget that youth unemployment went up by 250,000 in the years leading up to the general election without all the things that the Conservatives keep mentioning we are doing, such as giving rights and delivering investment into the economy.
I pay tribute to the business in my hon. Friend’s constituency that he advocates for. Businesses around the country are paying the price of, and having to adapt to the challenges posed by, the Iran war. It is a good job that we have a Prime Minister who kept us out of the war—those on the Conservative Benches would have plunged us into it and made things even more difficult for businesses in my hon. Friend’s constituency and across the country. On his specific question, I can tell him that we are engaging regularly with refiners, importers and distributors to ensure that any emerging risks are identified and managed properly.
I call the shadow Minister.
There is a bit of an end of term feel in the House at the moment. I heard the Secretary of State set out his answer to his essay question, but I point out that UK business confidence is at a four year low, unemployment is up, millionaires are fleeing, and the Department’s own figures show inward investment falling by 26% this year to the lowest level in over a decade. I would say that is a failing mark. What does the Secretary of State plan to do differently when the new headteacher arrives?
I always look forward to the hon. Lady’s questions. The fundamentals of running our economy are going in the right direction. Growth is up, and inflation is down. These are things that the Conservatives never achieved when they were in government, but we have achieved them in two years. We have got more growth into our economy in the last two years than they achieved in multiple years leading up to the election.
I do not know about you, Mr Speaker, but I did not hear a plan for improvement in that answer. I am afraid the mark is “must do better”.
Let us turn to another bit of the Secretary of State’s coursework in this failing end of term report. Will he agree today to compensate all the Horizon victims, and to get Fujitsu to pay towards it, by the end of the year?
I can assure the hon. Lady that the Minister responsible, my hon. Friend the Member for East Renfrewshire (Blair McDougall), has met victims regularly. We are accelerating the compensation and the justice from what we inherited, because it was going too slow to deliver the justice that people required. When it comes to Horizon, we will deliver the justice and compensation that people require.
On the plan, our industrial strategy is crowding £360 billion of private investment into key sectors of our economy. We are lowering energy prices for manufacturers. Through plan after plan after plan, we are delivering the change that business is calling for and needs.
I thank my hon. Friend for his question. We are working closely with various stakeholders to ensure that workers understand and claim their new rights under the Employment Rights Act. I know how vital trade unions are not just to organising, but to educating workers on their rights at work. I am so proud that they have been instrumental to development and implementation of these rights, and we look forward to continuing to working with them closely.
In Aberdeen South, there is a jobs emergency, with 1,000 jobs a month being lost from the oil and gas sector. So will the Government ditch their damaging policies that are destroying the oil and gas industry and destroying jobs in Aberdeen South?
This Government are investing record amounts in the transition to renewable energy. We need to break the dependence on fossil fuels that our country has been forced into by the Conservative party. We will do so by creating wealth, jobs and businesses in the meantime.
I am extremely grateful for my hon. Friend’s really important question. As I have said throughout this session, we are investing in young people and people in work, so they can adapt to the changes happening in the economy because of the transition to digital technology, particularly with AI. We are providing flexible support through bursaries for younger learners and learner support funding for adults. Do not forget the work that Business and Trade Ministers are doing jointly with the Secretary of State for Science, Innovation and Technology to ensure that people in the workplace are trained and have all the skills they need to thrive in the digital age.
Small rural businesses in villages such as Pembridge in my constituency tell me that the combination of high business and VAT rates and rising national insurance contributions means they are facing a struggle for survival. Small rural businesses face greater pressure than their urban counterparts, with lower footfall and seasonal fluctuations in trade, so they operate with very tight margins. Does the Minister recognise the additional pressures faced by such businesses and that existing support schemes simply are not enough, and what more will he do to support businesses in constituencies such as mine?
Of course, we recognise that this has been not just a tough time for small businesses, but a tough decade for those running one. That is exactly why our small business strategy is improving access to markets for small businesses, improving access to finance for small businesses, and cutting the regulatory burden on small businesses. We will of course keep doing more to make it easier, simpler and more profitable to run one.
I can provide all the reassurances my hon. Friend seeks. We are of course investing in the new technical colleges, as I have outlined. We are investing in young people so that they have the skills to transition from education into the workplace. We know that young people face challenges in this era because of not only the legacy of the last Government but the transition towards an AI future, which is disrupting the workforce. We are focused on training people, and we are working very closely with Alan Milburn, who brought consensus to the diagnosis of the challenges facing young people, and I hope will now bring consensus across the House to how we grab this issue once and for all.
In early 2025, Rutland police caught a local shop owner red handed with a carload of illegal fake cigarettes. Since then, I have reported this to His Majesty’s Revenue and Customs, the police and trading standards, and nothing has happened. Will the Minister please haul in trading standards, because this individual runs two shops in my constituency, which are both still open, attracting in children and encouraging the sale of vapes? That is wrong, and such shops are clearly part of the black economy.
It is infuriating when we see bogus businesses forcing legitimate, valued, independent retailers out of our high streets. The hon. Member will be aware of Operation Machinize, through which we have put significant resources into tackling the type of crime she raises. That is becoming a permanent approach under this Government. For my part, I am constantly meeting Companies House and the Insolvency Service to talk about how we can improve our enforcement efforts to force these bogus businesses out of our high streets and create space for legitimate businesses.
I am already working with DSIT on these issues, but because of my hon. Friend’s informed question and the imploration for me to do more I will double down on that. He is giving real voice to an incredibly important part of the defence technology sector which we need to foster. The defence investment plan invests much more in drone technology. We will be investing more than £5 billion in drones over the next four years, and that his constituency will be playing a very key role in that.
My hon. Friend raises a really important issue. With the issues around Morrisons Daily and TGJones, a lot of people across the country are worried about the future of their local post offices. Under the decision we made to maintain the current size of the post office network, I have been talking to the Post Office, and it is clear that where there is a risk of disruption that does not mean the service will disappear. Around the country, where there is the potential for a closure, it is advertising for alternative sub postmasters to take over the businesses.
I welcome the appointment of Parminder Kohli as the chief executive officer of the Office for Investment. He is a personal friend of mine, and he will bring 30 years of experience in the oil industry. Will the Secretary of State set out what measures of success Parminder will face, so we can judge what impact the Office for Investment makes and what role he will play?
I am grateful to the right hon. Gentleman for his informed question. I, too, celebrate this important appointment and the Office for Investment is doing great work. The criteria for success that I see are how Britain can get more scale up investment into companies, so they do not have to go elsewhere around the world to find the capital they need to grow, and how more people can start, build and scale right here in the UK. I often ask myself why the continent of Europe does not have a single trillion dollar company. The Office for Investment, working with the Government, can start to answer that question.
When I visited NDT Equipment Ltd in my constituency, the director Dan Lenton showed me the ultrasonic test calibration blocks and reference pieces that it uses and supplies to manufacturers in a wide range of sectors in the UK and abroad. This steel is not manufactured in the UK; it is imported and is high grade. I know Ministers are being flexible and talking to hon. Members. Will the Minister please consider the grade of steel that the company uses, which I believe is EN3B, and exempt it from the tariffs?
We have already laid out our steel trade measures, which are there to ensure that the UK has a steel industry. This is vital for our economic future. I want to make clear that 73% of all steel imports into the UK are not in scope of the measure, but I will, of course, look at this specific issue. If my hon. Friend would like to have a meeting with me and officials, we can make sure that that happens.
Last night this House debated the extended producer responsibility, which is seeing breweries, pubs and other businesses pay twice to recycle glass bottles. What meetings has the Department for Business and Trade had with the Department for Environment, Food and Rural Affairs to raise the economically damaging nature of this tax? If it has not raised concerns, will it?
I can assure the hon. Gentleman that we are having conversations with DEFRA over these issues. We want to ensure that regulation is right. We need to incentivise the right behaviour and the circular economy, but we need to do so in a responsible way. We are always engaged with the sectors that are impacted, not just because of regulatory measures but because of external measures facing our economy.
The Government’s critical minerals strategy was a fantastic achievement, with clear targets, and it will kick start a nascent industry. To take the next step to get the sector up on its feet and to a more competitive place, will the Minister support a Government price certainty mechanism for lithium?
That is one of the issues that we need to look at not just in the UK but with our international allies. We have got ourselves in a ludicrous position where critical minerals are available all over the world, but 85% of them are only processed in one country. We need to ensure that we have resilience in this area, and it is precisely the kind of issue that we need to look at to protect jobs in my hon. Friend’s constituency.
I recently visited Envirovent, a manufacturer and supplier of sustainable ventilation products just outside Harrogate. It was recognised in The Sunday Times’ best places to work 2026 and recently produced its three millionth ventilation fan unit. Will the Minister join me in congratulating Envirovent on those achievements, and perhaps visit to see the fantastic work it does for the people of Harrogate and North Yorkshire?
I certainly join the hon. Member in celebrating the success of that business—and businesses across the country that are doing such great work for the people who work in them and our overall economy. I would like to hear more about the business, and if I get the opportunity, visiting would be a pleasure.
I call the Chair of the Business and Trade Committee.
I know the Secretary of State will join me in wishing the United States a very happy 250th birthday on Saturday. It was John Pym and Members of this House four centuries ago who helped found the American economy, and I know the whole House will wish the young republic well. But it is the Republic of France that I want to ask the Secretary of State about.
Today, I am publishing correspondence between the Committee and the Port of Dover, warning that we will have, without doubt, a critical incident at the border unless France is persuaded to suspend the entry and exit system. The modelling has been done, and we know the chaos that will follow, so what will the Secretary of State do to ensure that we avoid this peril?
I am grateful for my right hon. Friend’s advocacy, and I share in his birthday message to the people of the United States of America. The Department for Transport is engaged with the Port of Dover, and thanks to the functional and productive relations we have with the EU, we are working with it on those issues to ensure that the worst case scenario my right hon. Friend outlines does not come to pass,
The Secretary of State is aware of the importance of Cheltenham’s cyber security industry, which is a key part of this nation’s defence efforts. I have good news for him: we are about to break ground on the Golden Valley development, bringing 12,000 jobs in cyber and tech to my town, as well as much needed new homes. Would the Secretary of State and his colleagues like to come and visit this success story in due course, not for the ground breaking next week, but in the future? It will be popular with the incoming Prime Minister.
The hon. Member’s enthusiasm is infectious. He came to meet me when I was Secretary of State at the Department for Science, Innovation and Technology to talk about the Golden Valley, and we spoke about our shared ambition in that area for the clustering of expertise that having GCHQ and others brings to the community he represents. I share in the hon. Member’s celebration and hope that I get to visit at some point soon.
The owner of Palace Cycles recently told me that while explaining to a customer that he would not service the illegally modified e bike that had been brought into his shop, the bike shot across the shop of its own accord. When will the Government regulate to ban the sale of dodgy, illegal, unsafe e bikes and the kits that create them?
I thank my hon. Friend for her constant campaigning on this issue. I know how important it is and, I value working closely with her. Businesses producing or supplying those products must ensure that they are safe before they are placed on the market, including online marketplaces. Businesses should not supply products they know—or should know—are unsafe. My hon. Friend knows that taking action includes regulatory action. We work alongside other Departments on this, and our recent consultation looked at how we can go even further to ensure that products are safe.