Jonathan Reynolds MP: speeches

Speeches

• 12 Apr 2025 · Steel Industry (Special Measures) Bill · Hansard source

  More

  Will the right hon. Lady give way on that point?

• 3 Apr 2025 · UK-US Trade and Tariffs · Hansard source

  More

  I thank my hon. Friend for her support. We are taking steps to ensure that all options are on the table for the action we may need to take in future—that is important. It is inevitable when an announcement of this magnitude has occurred that businesses will be concerned, and I understand that will be what her constituents are telling her this morning. I absolutely assure her that the approach I have laid out today will be something that we continue to work towards at pace. Our tone, the assurances we can give and the fact we are approaching this with calm-headed pragmatism is vital, and that will be part of how we can reassure businesses. We will work to get to the position she articulates—a better set of trade terms with the US—and that is the objective of the Government.

• 3 Apr 2025 · UK-US Trade and Tariffs · Hansard source

  More

  I thank the hon. Gentleman for his question. He may be aware of the biopharma conference held in the UK yesterday with the top chief executive officers of many of the leading companies in this area. It was attended by myself, the Prime Minister, the Secretary of State for Health and Social Care and the Secretary of State for Science, Innovation and Technology. The hon. Gentleman is right to say that we could see further announcements in this area. There are particular US issues, such as the differential in drug pricing, which has always been a fairly prominent part of trade negotiations. There is an integration and shared aspiration between people in Government, such as myself and the Health Secretary, and recognition of our need to be more forward-leaning, to use more innovation, to look at how we provide that and the relative allocation of resources in our existing health system. We take that very seriously, and we are very much looking at that. There is a lot to do, and it is a difficult situation, but we need more of the success that the hon. Gentleman outlined.

• 3 Apr 2025 · UK-US Trade and Tariffs · Hansard source

  More

  I thank the hon. Gentleman for his question and for his kind words. It has been quite a week so far, and we still have some way to go. This is an issue not just for Northern Ireland Members, but for all Members of the House. We have to be alert to the particular situation that would occur if there were a different retaliatory stance from us and the EU. That is why I briefed the First Minister, the Deputy First Minister and my counterpart yesterday. The shadow Minister was right that the issues around the duty reimbursement scheme are key. On the formal steps that we have taken, businesses can now input their concerns and what the tariffs will mean to them directly to Government. We need to work together, particularly in relation to Northern Ireland, to ensure that specific voice and that specific question are a key part of how we look at the issue and respond. I am keen to work with the hon. Gentleman in that regard.

• 3 Apr 2025 · UK-US Trade and Tariffs · Hansard source

  More

  I do believe that strength comes in making the right choices at the right time in our national interest. I can tell the hon. Member that the talks I have had with my US counterparts are not to do with what she has articulated; they are to do with goods, services, the regulation of professional bodies and all the things we would associate with normal trade talks. The United States is not seeking to make our children unsafe or more vulnerable. That is not the right approach to take to our key and core ally. I think sometimes the Liberal Democrats are inventing problems to try to propose that they are the solution. This is a conversation about trade, and it is vital that we keep it in those important and appropriate terms.

• 3 Apr 2025 · UK-US Trade and Tariffs · Hansard source

  More

  Our job is to defend the UK national interest, and the company in Torbay that the hon. Member described—it sounds like a fantastic company —is an exemplar of why I want businesses to be based in the UK: because they can then access a whole range of markets from the best possible position. That is exactly the kind of company that, because of complex supply chains, will have questions about what the announcements mean for it. We decided to launch bespoke information on great.gov.uk today to coincide with this announcement precisely to attempt to provide such companies with the assurance that they need. A business like that can genuinely help us through this difficult period, because whatever hon. Members think of the President and his agenda, that agenda is based on returning a certain type of good-quality manufacturing job to the United States, and in many cases British firms and British business already provide those. They will provide more if we can find a way through these trade tensions and the imposition of tariffs, so they can work with us on the solution to these problems. I am grateful to the hon. Member for mentioning that company.

• 3 Apr 2025 · UK-US Trade and Tariffs · Hansard source

  More

  As a former Treasury Minister, the right hon. Gentleman will know the kind of work that goes on to make sure that such assessments are made. The announcement came late last night; it is only last night and this morning that we have had the chance to respond to it. He will also appreciate that the impact on the UK is about not just the direct relationship between the US and the UK, but what happens in the wider global trading system. How other countries choose to react to the US announcements will be the determining factor for the impact on the UK, and we do not know that at this stage. I promise to keep the House updated, and to update the right hon. Gentleman personally, if he wishes, at any stage on our work to assess the impact on the UK. For all Members of Parliament, this should be a time for reassurance, for calm heads and for giving clear information to British business on how we will navigate these difficult times. That is the correct message to send out from Parliament.

• 3 Apr 2025 · UK-US Trade and Tariffs · Hansard source

  More

  My hon. Friend is right to talk about the historic scale and significance of the announcement last night, particularly for her constituency, which has economic infrastructure that is so vital to the country, and how we will process the scale of the changes. I assure her that the Prime Minister, members of the Cabinet and I as the Secretary of State are at all times doing what she mentioned, in the decisions that we have had to make at pace, so that we can put our national interests forward in a way that has allowed us to progress negotiations and to keep opportunities open.

• 3 Apr 2025 · UK-US Trade and Tariffs · Hansard source

  More

  I warmly thank my hon. Friend for his question and his support for the approach we are taking. I believe there is a competitive advantage to seek for the UK where we are able to reach agreement with the US. We are able to do those trade deals and negotiations with countries such as India or customs unions such as the Gulf Co-operation Council, and also to get the EU reset right. Although this is not about looking to the past, a lot of smaller businesses stopped exporting entirely after Brexit. They almost certainly set up subsidiaries in the single market, which was not to our advantage, and we saw a real decline in certain types of food and drink trade, even though we had a broadly similar SPS regime in place. We can work on those practical things, and that is our objective. There is real gain to be had from that. We need a partner on the other side who sees the benefits as well, but I believe that they exist, and that is a crucial focus for what we call the twin-track approach to trade under this Government.

• 3 Apr 2025 · UK-US Trade and Tariffs · Hansard source

  More

  I thank the hon. Gentleman for that question, and he is right to note some conspicuous absences from the Chamber on such an important subject. I could not make it clearer: I care a great deal not just about the transition to new technologies in the automotive sector, but about ensuring that we make those vehicles in the UK. We face tremendous competitive pressures, as he will know from the stories his constituents tell him. We must be alert to that and willing to be adaptable, to ensure that we are a place where vehicles can be made. We have some tremendous industries. If we chart the productivity and efficiency of some of our plants on a global scale, we see that are at the top end. We must get that policy and regulatory environment right, and I give the hon. Gentleman a total assurance that that is my personal objective.

• 3 Apr 2025 · UK-US Trade and Tariffs · Hansard source

  More

  I warmly welcome my hon. Friend’s words and his endorsement and seconding of my whisky choice. I should say that other excellent whiskies are available; a lot of Scottish Members are present, and I do not want to offend anyone. He is right to say that businesses will need reassurance: I hope they will get that from the tone that the Government are striking today, but they will need information. If Members get out their phones and go on to great.gov.uk, they will see a link to a bespoke page where that information is provided. We have advertised around that. My hon. Friend makes an important point. Where we can look at alleviating some of the domestic pressures, whether through regulation or other areas, this is clearly the time to do so. I have had those conversations with Cabinet colleagues. He is right to say that this is not about changing policy, but about looking at the impact right now and how we can make a difference. That is a very wise observation to make.

• 3 Apr 2025 · UK-US Trade and Tariffs · Hansard source

  More

  Fundamentally, I want to see greater market access to the US for small and medium-sized businesses in every part of the UK. We can tackle particular things as part of that, such as the regulatory system in the United States and the federal-state dichotomy, particularly for services and exports. All that is the prize on offer if we get this right. A big part of trade policy is also about not just free trade agreements, even though they tend to get the most prominence, but how we come to agreement on e-commerce and functions of online marketplaces and transactions. All that is a very practical difference that we can make, through good trade policy, to small and medium-sized businesses. That will be a premium and important part of the trade policy we are about to publish.

• 3 Apr 2025 · UK-US Trade and Tariffs · Hansard source

  More

  JLR is an example of an incredible UK-based business in terms of its success in the US, China and other parts of the world. We want to maintain that and give that business the platform it needs for that success. I am in regular contact at the most senior levels with JLR. I am delighted to hear that my hon. Friend is meeting it today to share some of these messages of reassurance. I know that, like all businesses, it supports this calm, pragmatic, rational approach to finding a better trade relationship with the US, not just to avoid the imposition of what was announced yesterday evening.

• 3 Apr 2025 · UK-US Trade and Tariffs · Hansard source

  More

  I am tremendously grateful for my hon. Friend’s support and for her question—Adam Smith is probably the best historical reference we have had in this statement so far. As she knows, I have always aspired for my Department to be one of the most pro-Scottish UK ministries, because of the interests that we are there to defend and promote. She will also know that this week is Tartan Week in the US. The Secretary of State for Scotland is in the US right now, and I admire the way that he has turned the Scottland Office into such an economically focused Department, working with Scottish businesses, and working closely with me. That is a tremendous initiative, and one that we will continue to promote.

• 3 Apr 2025 · UK-US Trade and Tariffs · Hansard source

  More

  I thank my hon. Friend for his support. He has some tremendous businesses based in his area, and it is great having him here as a champion for them. In terms of the automotive sector, it is about the regulatory environment, which we have discussed, and it is about the funding that we make available for co-investment with the private sector, which is always a priority, and £2 billion was allocated for that in the Budget. We have to accelerate and improve our electric vehicle charging infrastructure, and there was £300 million for that in the Budget. The pressures on the automotive sector across Europe are fierce—that is widely recognised—with changes in consumer demand and much more competition from China coming into the market. We have to be serious about making sure that the UK is the place to be a producer of automotive vehicles. My personal commitment to that is very strong.

• 3 Apr 2025 · UK-US Trade and Tariffs · Hansard source

  More

  I thank the hon. Gentleman for his question. I have constituency interests that are similar to his, and the close alignment between ourselves and the US on defence and security matters is an enduring and huge asset to both countries, so I share the sentiments he has raised. He asks whether we can engage US counter- parts in this conversation about a more constructive way forward. Yes, that was always part of our thinking, and our trading bodies in the UK have excellent US links in the main, and they engage in similar activity around that. On his specific point, I have no detail to give him— I have no knowledge of anything like that being used as a bargaining chip, but if I need to give him additional information, I am happy to write to him to provide that.

• 3 Apr 2025 · UK-US Trade and Tariffs · Hansard source

  More

  I am grateful to the hon. Lady for her questions and her submission. I am pleased to hear that she feels we need to end any potential trade war—although I am pretty certain I heard her in the media last week demanding that we escalate the trade war. I do not think that is in any of our interests, and it is not the route and direction we need to go in. The hon. Lady mentions that there is no sign of the UK being treated in any different way; she will know that the US has a view of VAT that we do not share—the US compares VAT to its sales tax. If we look at our rate of VAT and the comparable treatment of the European Union, we see that there is a differential. That does not satisfy me, because I believe we could seriously get to a position in which we not only avoid the imposition of additional trade tariffs and barriers, but deepen our trade relationship and remove some of the barriers that already exist, particularly in the trade in services. That is the Government’s objective. We of course work closely with a whole range of friends and allies, but when they go into any negotiation, they represent their own national or customs union interest, and we do the same. I would not expect any country to go into a negotiation trying to represent the UK; other countries will have their own interests. I do the same for the United Kingdom: I have to put our interests first. There is a different structure to the trading relationship between the US and the UK—for instance, the US does not have with us the large deficit in traded goods that it has with the EU or China—so it is a different level of conversation and it allows us to put our own interests first. That is all that the Government seek to do in our policy towards the US. The hon. Lady mentions a range of other issues that I recognise. Colleagues know that I had strong views on the very large increases in industrial energy costs that occurred after 2010—there was an increase of almost 50% in real terms—and I think they need to be addressed. The industrial strategy and other Government initiatives set out our wider policy objectives and tools in this area. The consultation and call for input that I announced today is much more about the formal steps we need to take to understand from businesses the impact and give them the chance to put forward their views. As I say, that will not be necessary if we can come to an agreement, which I believe all Members want us to do. I believe that the relationship can be deepened. If we get it right, it will not come at a cost to our other key trading relationships, such as with the European Union. That is the Government’s objective and I welcome any support from throughout the House for fulfilling it.

• 3 Apr 2025 · UK-US Trade and Tariffs · Hansard source

  More

  I warmly welcome my hon. Friend’s question. He is right that this is a substantial change in US policy. It is important that, even if we do not agree with some of the decisions made and the thinking that underpins them, we recognise where they come from. Indeed, they were part of the US presidential campaign, so we have been able to prepare the ground for our conversations. My hon. Friend asked about international co-operation. We are strongly involved with the WTO, and particularly supported the re-election of Dr Ngozi as its director-general. It is important to remember that despite the problems the multilateral system faces, it is still the basis on which the vast majority of trade around the world takes place. We will continue to play a constructive role in relation to the WTO, and any multilateral organisation, where that serves our interests.

• 3 Apr 2025 · UK-US Trade and Tariffs · Hansard source

  More

  My right hon. Friend is right that some of our iconic automotive manufacturing brands, such as BMW, Jaguar Land Rover and Aston Martin, have had particular success in the US market and are therefore exposed to tariffs. There is close co-operation in Government between the teams working on our EU reset and on our trade negotiations in this area, so I assure my right hon. Friend of the alignment, continuity and consistency of our policy. My right hon. Friend will know that, along with the changes to domestic policies such as the ZEV mandate, there was significant money in the Budget for incentivising the roll-out of infrastructure for electric vehicles, and £2 billion has been put aside for the wider joint collaboration and research and development initiatives with the automotive sector, which remains a clear and consistent Government priority. I will keep my right hon. Friend updated given her particular constituency interest.

• 3 Apr 2025 · UK-US Trade and Tariffs · Hansard source

  More

  My hon. Friend is right to highlight that. I am tremendously proud of our automotive sector. Indeed, he may know that I come from and grew up in one of our automotive sector powerhouses, Sunderland, with the Nissan plant. It is incredibly important to lots of communities in the supply chain all around the UK, but particularly to our exports. The US is a key market, particularly for the high-value models, some of which he mentioned, which are incredibly valuable to this country. We want and seek to maintain that success. On the kind of support, first, it is about dealing with this issue. Secondly, there are things such as the announcement in the Budget of the £2 billion for collaboration with the private sector in the automotive field, the money incentives for electric vehicle infrastructure and the changes around the wider ZEV mandate that we are consulting on and about to publish a response to, for which we need a more pragmatic response than we have seen in the past.

• 3 Apr 2025 · UK-US Trade and Tariffs · Hansard source

  More

  I am grateful to the hon. Gentleman for his comments. He knows that I always have time for him to discuss the particularly challenging constituency issues that he faces through the position at British Steel. Just to be clear, today’s announcement is the formal step necessary to engage with British business about last night’s announcements. That is an important stage and the right way forward, and we have been prepared for it. In relation to the other challenges around the steel industry, this is a particularly challenging situation—he and my hon. Friend the Member for Scunthorpe (Sir Nicholas Dakin) know that better than anyone. Our commitment, even in difficult circumstances, is absolute. We will continue with that, and I will continue to keep him and his constituents updated at all times.

• 3 Apr 2025 · UK-US Trade and Tariffs · Hansard source

  More

  I thank the shadow Secretary of State for his response and his tone in responding. I recognise his commitment to free trade and the case he has made for it. I believe it is something we broadly share. He asks for honesty—that is always good in Parliament—but he is a little bit flippant about the position we find ourselves in today. He mentions a series of countries—Christmas Island, Kosovo—that do not have the kind of complex trading relationship that we have with the United States. The shadow Secretary of State can see from my tone, presentation and words that I am disappointed that we are in this position, but I look at the EU, facing a tariff of 20%; at Japan with 24%; at India with 26%; and at Canada and Mexico with 25% tariffs already in place. Yes, we are in a more favourable position compared with those key friends and allies, but we must go further, especially in relation to the tariffs on the automotive sector, which is a particular concern for me. The shadow Secretary of State again brings up Brexit, which was perhaps not the Conservative party’s finest hour in preparing the state for large trade shocks, but let us pass over that. As the President of the Board of Trade, I am of the view that it is good that we can set our own trade policy, but I say to him and to all colleagues: is it not time that we try to unite the country for the future, rather than keep on harking back to the past? Is that not how we will find our way through this? Half the country voted one way, and half voted the other way, but let us build together and look to the future. It is the right way forward. My next point is very important: it is false to see this as a choice between working with the US and working with the EU. We can work in a way that is consistent with both, and we should all be committed to that. The shadow Secretary of State also asked about the implications for the United Kingdom. Broadly, he asked me to reverse a series of policy choices made in the last 14 years; I will go through all of those. In relation to the spring statement, the Chancellor had already rebuilt the headroom substantially higher, due to the global turbulence, than that bequeathed her by the Conservative party. On the Conservatives’ spending plans, they left no business rates relief whatever: it was a one-year relief, rolled over, that never had any longevity. I have not yet received any credible proposals on how their spending plans would be paid for, but I am always available to receive those in writing. The shadow Secretary of State asks for reassurance, which we are always happy to provide on domestic policy changes. On things like the ZEV mandate for the automative sector, we are more pragmatic than the Conservative party was when in office. As he knows, the Department for Transport leads on that policy, but our response to the consultation on potential changes will be published soon. As colleagues would expect, I will not comment on the details of any negotiations with the US. In our manifesto, we committed to the UK’s sanitary, phytosanitary and food safety standards system. Of course the Government will adhere to that. The shadow Secretary of State also knows that we are imminently preparing to publish our trade strategy, which covers a lot of these issues, particularly around support for exporters that we want to proceed with. Northern Ireland is an incredibly important issue for all colleagues. The potential for a differential response from the European Union could lead to a difficult situation in Northern Ireland. As the Secretary of State highlights, the key policy is the duty reimbursement scheme, because goods entering Northern Ireland from the US that will not go into the wider single market are subject to the reimbursement programme. We must make sure that that works well. I recognise the points that he has made on it, and I will continue to update the House and all colleagues on our work in this area. I recognise how important and relevant it is to all our constituents, so we will endeavour to keep all colleagues updated on progress.

• 3 Apr 2025 · UK-US Trade and Tariffs · Hansard source

  More

  I am grateful for my hon. Friend’s support. There was no real progress on a federal level with the US under the previous Government. The former President made the decision that he would not pursue trade deals, so there was perhaps not much they could do on that, but I do sometimes reflect that the Conservative Government broke our relationship with our nearest and most important trading partner, which is the European Union; they then fell out with countries in the Gulf and could not do that deal; they could not do the deal with India; and they would not engage with China. For a global Britain policy, there is not much of the globe left if we find ourselves in that position. That is not best practice for us to follow, but we welcome Conservative Members’ support for our approach if it exists and continue to say that this is surely the right way forward for all our constituents.

• 3 Apr 2025 · UK-US Trade and Tariffs · Hansard source

  More

  The hon. Gentleman has skilfully raised issues relevant to the autumn statement that are more for the Chancellor than for me. Products from the food and drink industry form a prominent part of our economic exports. Because of that industry’s success and what it means to the prosperity of every bit of the United Kingdom, it features heavily in all our decisions, whether on trade, business support, export support or the wider regulatory and policy environment. I assure the hon. Gentleman that his constituents and the excellent and successful businesses in his area are always prominent in our thinking.

• 3 Apr 2025 · UK-US Trade and Tariffs · Hansard source

  More

  That is the right approach to take. I welcome my hon. Friend’s support and that of the businesses in her constituency that she mentioned. Of course we are trying to find a way through this, but given the situation we inherited after the election, our domestic competitiveness is not what it could be and what it needs to be. Even Conservative Members recognise the impact of aspects of regulation, energy prices and the direction of travel. The output of foundation industries last year and this year is at levels that should concern us all. We have to get that right, which is why this Government are committed to an industrial strategy and a trade strategy that works in partnership with it. As well as endorsing our approach, the feedback from businesses is that that is exactly what they want. West Bromwich is a powerhouse, but I want it to be an even bigger powerhouse in the future, and the same applies to the constituencies of many Members across the House.