Jonathan Reynolds MP: speeches

Speeches

• 23 Jun 2025 · UK Modern Industrial Strategy · Hansard source

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  It is very important that we show the British people that the added investment and huge increase in defence spending from this Government will see real economic benefits for them and opportunities for their families, as well as fulfilling the core function of national security. My hon. Friend mentions devolution. We have measures in the strategy for local areas, whether or not they have mayoral leads on innovation and mayoral growth funds, many of which build on the very successful work of Andy Burnham, my Labour mayor in Greater Manchester, and Richard Parker in the west midlands, who have done brilliant things. Those are the most developed and mature mayoral areas. We can see what has worked in those places, and it really is starting to work. Let us have more of that across every bit of the UK, tailored for local needs and with the right tools that those political leaders need.

• 23 Jun 2025 · UK Modern Industrial Strategy · Hansard source

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  I always take a close interest in success stories from the north-east of England, and what my hon. Friend outlines is incredibly exciting. The high-tech SME cluster that he talks about will benefit in many ways from each of the sector plans, whether they are in advanced manufacturing, creative industries or defence. There are provisions on access to finance for them in this strategy and the dedication of resources from the defence budget, for instance, for that sector. Those businesses are set to fly, and with this industrial strategy my hon. Friend has a real chance to build and communicate the opportunities for them over the next few years.

• 23 Jun 2025 · UK Modern Industrial Strategy · Hansard source

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  I very much welcome the question and the work that my hon. Friend has done. He has been an ally in ensuring that there are no problems around the defence sector being seen as a legitimate source of business investment and economic activity. We recognise why we need that in the national interest, but we should not in any way be squeamish about the contribution that defence makes because the deterrence value is a fundamental contribution to peace, as well as to economic security. I can tell my hon. Friend that the strategy commits us to double the amount of the defence budget that goes specifically to SMEs, rising to £2.5 billion a year. SMEs, in diversifying the defence supply chain and creating those opportunities, are absolutely a part of this strategy, and if he has any red tape to show me that we need to get rid of, let’s work together to get rid of it.

• 23 Jun 2025 · UK Modern Industrial Strategy · Hansard source

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  It was a pleasure to see my hon. Friend this morning with my right hon. Friends the Prime Minister and the Chancellor. I was absolutely blown away by that facility, not just by the obvious “big name” investment from the companies there, but by the young people in particular. Of course, we are trying to deliver a strategy for business, and that requires businesses to have access to the pipeline of people, talent and skills that they need. Within that story, there are so many opportunities and careers for young people. I find that absolutely inspiring. Having an offer for the kind of apprentices and advanced manufacturing we saw today, alongside pride in our service and creative sectors and what we are doing on defence, is all key to ensuring that there are not just the things we need as an economy, but equities and opportunities for young people, as there should be in every part of the UK, to get the lives that they deserve.

• 23 Jun 2025 · UK Modern Industrial Strategy · Hansard source

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  It is brilliant to hear from my hon. Friend; she has so much to be proud of in her constituency. I have visited Farnborough on several occasions, and it has a range of things that are directly represented in this strategy. I also thank her for being a huge ally on the work that we have done on access to finance for the defence sector, which has been an important message for us to send out about national security and the huge economic opportunities that rightly should come from the increase in defence spending that this Government have committed to already.

• 23 Jun 2025 · UK Modern Industrial Strategy · Hansard source

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  I very much welcome that question. The Ministry of Defence has been a partner in the defence industrial strategy, which mirrors and is closely aligned with, as one would expect, the strategic defence review and the big increase in spending under this Government.

• 23 Jun 2025 · UK Modern Industrial Strategy · Hansard source

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  With permission, I will make a statement on how this Government are backing British business and British workers through the launch of the UK’s modern industrial strategy. At the outset, I wish to thank Dame Clare Barclay, all members of the Industrial Strategy Advisory Council and my officials for their outstanding work in preparing for the launch of the strategy today. In an uncertain world, stability, clarity and consistency are needed more than ever. The challenges we face require nothing less than a Government who are on the pitch and clearing the way for private enterprise, and doing so in the best interests of working people. That is what this pro-business, pro-worker Government are going to deliver. Today I launch a strategy to make Britain the best place in the world to start and grow a business, based on a fundamentally new economic approach from what we have had in the past—a break from the declinism, the dither and the disinterest that defined the last Conservative Government. The strategy speaks to the strength and breadth of our economy, be it building strong industrial foundations, powering frontier technologies, or supporting our world-leading services sector to innovate and thrive. It brings together every bit of Government to drive investment, improving the total business environment by drawing on every Department’s expertise. It is a plan to rebuild Britain through new jobs, new industries and new investments; a plan to launch thousands of new careers in engineering, life sciences, professional services and more; and a plan in which Britain’s future is designed and built in Britain. I accept that until this Government came to power, British business was treated to a merry-go-round of policy changes that was matched only by the shuffling of successive Business Secretaries. We are now providing the stability that is at such a premium across the world. Make UK has long called for “a funded and joined-up long-term vision as a matter of urgency for stability and investment”— I could not have put it better myself. From the moment we took office, we said that we would pursue a new economic approach in which industrial policy would be done with business, not to business, and we are fulfilling that commitment today. I place on record my thanks to the thousands of businesses that engaged in the process and designed the strategy with us. It is not a document that will be printed and then forgotten; we will put the Industrial Strategy Advisory Council and the industrial strategy on a statutory footing to hardwire the changes for the long term. This Government have brought stability, openness and a pro-growth agenda, but as I have told the House previously, working people must feel the benefits of economic growth. We must go further and faster if we want to achieve the kind of economic growth that the public should expect, see in their public services and feel in their pay packets. Business leaders have provided a wealth of testimony and evidence on the areas that they see as holding them back, and there are no surprises on the list. It starts with energy, because we have among the highest industrial electricity prices in the developed world at present. They went up 50% in real terms under the previous Government. Second on the list is skills, because when we have vacancies at the same time as one in eight young people are not in education, employment or training, and net immigration is at 1 million, as it was when we took office, something has gone badly wrong. Thirdly, there is place, because too much of the country has been held back by crumbling infrastructure and a lack of investment due to the north-south divide—and that ends now. We will make the bold choices to ensure every region and every nation can play to their strengths. Finally, there is access to finance, because without access to capital we will always have a ceiling on ambition. Today, we have smashed through these barriers. Let me take each of those four in turn, starting with energy. Today, we have announced that we will slash electricity costs by between 20% and 25% through a new British industrial competitiveness scheme. This will bring our prices more closely in line with those in Europe, and it will be a game changer. We will also put in place the reforms we need for businesses to get the much faster connections to the grid that they need. That means companies in sectors such as car making and chemicals will see their electricity costs cut. The scheme could benefit over 7,000 businesses with high electricity usage in industrial strategy foundational industries and high-growth manufacturing sectors, which collectively employ over 300,000 skilled workers. We will also launch an expanded version of the supercharger scheme, so that some of our largest companies in electricity-intensive sectors—including investments of the future such as the new steelworks’ electric arc furnace at Port Talbot and the Agratas gigafactory in Somerset—will see their network charging exemptions rise from 60% to 90%, cutting their electricity bills and again making them more competitive than our European neighbours. Although the previous Government promised that to business, they again failed to deliver. I confirm that this will all be done without adding a penny to consumer bills or those of any other business. Secondly, we are shaking up the skills system to prioritise digital, engineering and defence skills, so British workers can secure good, secure jobs in tomorrow’s economy. Our industrial strategy sectors are already on track to create 1.1 million new good, well-paying jobs with the help of this industrial strategy, and we want those opportunities to benefit all our constituents. That is why we are investing over £275 million in our engineering skills package and the skills mission fund to deliver training and new technical excellence colleges as part of our wider skills offer. Through our global talent visa reforms and the global talent taskforce, we are also ensuring that UK businesses can recruit the best of the best from here and abroad. Thirdly, the issue of place—the economic geography of the UK—means a great deal to me and many of my colleagues, who listened to the grand plans to level up that turned into a few extra flowerpots and empty promises. I want to be clear that this strategy is unashamedly ambitious. It chooses to back places where there are clusters of high-growth sectors, and it will work with devolved Governments, Mayors and local leaders to boost that growth. We are making it easier to get money to places and turn investment into spades in the ground and cranes in the sky through industrial strategy zones, which will bring together our existing network of freeports and investment zones. We will also, for the first time, include a new programme identifying investible sites where we will fast-track development, similar to the approach taken in France. However, our infrastructure must match our ambition, so we will strengthen connections between city regions and clusters through the Oxford-Cambridge growth corridor, the growth corridor across our northern city regions, the Edinburgh-Glasgow central belt and rail enhancements in Wales. Finally, we will unlock billions of pounds in business finance, with the National Wealth Fund supporting our growth sectors, an expanded role for UK Export Finance and £4 billion growth capital for start-ups and scale-ups through a larger British Business Bank, addressing at scale the key stage that we know is the most challenging. This growth capital will catalyse £12 billion of private capital across the eight growth-driving sectors and deliver around £30 billion of additional gross value added to the UK economy. These measures, alongside our transformative sector plans, are how we can realise the untapped potential in key parts of our economy. For instance, by 2035 we aim to double business investment in advanced manufacturing, increasing the volume of vehicles produced in the UK to 1.3 million, while creating the first European market for self-driving vehicles. We are turbocharging our clean energy mission with investment in offshore wind, small modular reactors, carbon capture, green hydrogen, gigafactories, ports and green steel. We will make our United Kingdom one of the top three places in the world for creating and scaling digital and technology business. That means training 1 million young people in tech skills and expanding our Al research resource by at least twentyfold by 2030. We will significantly increase business investment in our world-leading creative industries sector to £31 billion, cementing our position as one of the great creative exporters in the world. For our life sciences sector, our ambition is that the UK will be, by 2030, the leading life sciences economy in Europe, and, by 2035, the third most important life sciences economy globally, after the US and China. At the same time, we plan to double business investment in professional and business services to £61 billion, ensuring the continued growth in a powerhouse industry that accounts for millions of jobs in the UK, the vast majority outside London. We have already announced the largest increase in defence spending since the cold war and will use this to transform the UK into a defence industrial superpower by 2035, leading Europe in defence exports and closing the gap with the US by half in venture capital investment in defence. For our financial services, the heart of business investment and stability, we will harness opportunities as markets digitise and adopt new technologies, and ensure the whole economy feels the benefits of increased investment. The industrial strategy also ensures that places and sectors can take full advantage of the UK’s position as a global hub for trade. The UK has long been and will remain a champion of free trade, which is why, under this Government, we have delivered trade agreements with our biggest trading partner in the world, the biggest economy in the world and the fastest growing economy in the world, making the UK the best connected market in the world. Through this industrial strategy, we are reaffirming our commitment to free and fair resilient trade, while shielding businesses from supply chain disruption and market-distorting practices. We will leverage our relationships with Europe, the US, China, the Gulf and beyond, so that businesses can make the UK their base to connect with global markets. It will work hand-in-glove with the trade strategy, which my Department will publish later this week, to help British companies break into new markets, export more and grow more. This is a watershed moment. For too long, Governments have been a source of problems for British business, not a path to solutions. The result, in parts of the country where I and many of us here grew up, was that we watched yards and factories close, along with the door to opportunity. There was a sense that we were losing the past, but we had no bridge to the future. That also ends now, because our plan for change is backing this country’s greatest assets and frontier industries to put more money into people’s pockets, raise living standards and unleash a decade of national renewal. I welcome Make UK’s comments that “Today is one of the most important days for British industry in a generation.” We are creating a prosperous, proud and outward-facing but self-reliant, independent and high-skilled nation; a country where opportunity, skills and wealth are spread fairly, and where every person and every business have the chance to flourish. That is what our modern industrial strategy will deliver. Our future, in our hands, built in Britain: that is what the strategy will achieve. I commend this statement to the House.

• 12 Jun 2025 · Topical Questions · Hansard source

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  I am grateful to my hon. Friend for that question. Yes, I can reaffirm that position. As she says, the Foreign Secretary announced on 20 May that we have suspended negotiations on an upgraded free trade agreement with Israel in response to the egregious actions of the Netanyahu Government in Gaza and the west bank. Of course, the UK has existing business relationships with Israel that are not affected by that decision, and we maintain trade envoys with both Israel and the Palestinian territories. What we all want is peace, a two-state solution and a strong UK relationship with both states.

• 12 May 2025 · US-UK Trade Deal: Northern Ireland · Hansard source

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  That was a fairly odd stream of consciousness, if I am being totally honest. It appears that I have given a stronger defence of the Windsor agreement negotiated by the former Conservative Government than the Conservative party has managed today. The shadow Minister has asked for detail. I acknowledge that, particularly when dealing with the US and the style of the US system, negotiations have a pace—a pulse—and they are perhaps different from how we would present the detail of a complete trade agreement, such as the one we agreed with India. However, I think he would acknowledge the importance of last week’s announcements, because such a significant part of our exports to the US is covered by its sectoral tariffs, not the reciprocal ones. Businesses would have had to start planning this week for a world of—in some cases—25% tariffs, which would have had major repercussions for jobs, businesses and growth in the UK. Being able to give those businesses reassurance, alongside a clear indication of the ongoing nature of the negotiations, is a significant win for British business. I hope the Opposition recognise that. The hon. Gentleman asked specifically about preferential rates on pharmaceutical products. Those in the United States have not yet completed their own investigations in respect of some of the sectoral tariffs to which they have alluded, and have not announced what they are putting in place. The nature of the agreement, given that it covers the sectoral tariffs, is to recognise that we would want the UK to be in a preferential position on those as well, rather than agreeing what we have already agreed on sectoral tariffs and then seeing further sectoral tariffs announced in future. The hon. Gentleman asked about the digital services tax. It is not in the agreement; it is not a part of what was announced last week. As for the question of the special status of Northern Ireland, this is the agreement that the Conservative party struck. It manages two very difficult countervailing pressures. The Conservatives might have thought more about this during the Brexit process, but they did not. They had to resolve the issue after the agreement, and to be honest, I do not think they did a particularly bad job in reaching the compromise that Windsor represents. Exports from Northern Ireland are covered by the preferential trade terms that we have secured with the United States. When goods come into Northern Ireland, there is a differential depending on whether they are staying in the United Kingdom or there is a risk of their entering the EU’s single market. That is what the Conservative party agreed. I think that the new degree of complexity comes from differentials between the EU’s approach to trade and trade defence, and our own, but surely we all recognise that part of what we are talking about here reflects the fact that we are not in the European Union. The hon. Gentleman again engaged in some language about the European Union. This country did a trade deal with India last week, one that the Conservative party promised many times but never delivered. We reached an agreement with the United States in the same week. We have the EU summit coming up. Everything that we have said about how this country does not have to pick just one trading partner—it can be the best connected market in the world—is borne out by the agreements that we have signed. Every Member of this House should get behind a UK that is strong on the world stage and connected to each and every one of the major economic markets that we need to be our partners.

• 1 May 2025 · Trade: US Tariffs · Hansard source

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  As we have heard, the US is our largest single country trading partner, with total trade worth £315 billion in 2024, representing 18% of total UK trade. More than a million Americans work for UK-owned businesses and vice versa. We have regular and ongoing constructive negotiations with our US counterparts, including some this week, on securing a wider economic deal to benefit UK businesses and our economy. In those talks, we continually push the case for free and open trade. Nobody wants to see a trade war, so our focus is on keeping calm and continuing to negotiate in the interest of UK businesses and consumers.

• 1 May 2025 · Trade Agreements · Hansard source

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  I announced in July that we were resuming free trade agreement negotiations with the Gulf Co-operation Council, India, Israel, the Republic of Korea, Switzerland and Türkiye. We have also begun talks with the United States on an economic prosperity deal, and we support the Cabinet Office with trade aspects of the EU reset.

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

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  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

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  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

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  My hon. Friend is absolutely right in his assessment of the burdens and benefits of solving the challenge we have been faced with by the announcements yesterday evening. He will know that the defence sector is one of the eight priority sectors of our industrial strategy. There is a whole range of work across areas like air and space that we are engaged in with Ministry of Defence colleagues. Of course, we have also had a significant increase in defence spending, which is a crucial part of how we respond to these threats. The US will always be a crucial security ally for us, and our shared interests—whether they are economic or in the defence and security space—are enduring. That is something we should always bear in mind as we try to find a way through.

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

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  I am grateful to my hon. Friend for her question. Let me be clear again: no one is celebrating the position that the country found itself in this morning. We recognise the differential for the UK, but all of us in the House—Members from all parties—are disappointed by the announcement from the United States, and are seeking to provide a way through. I know that my hon. Friend feels very strongly about this matter, but I reiterate to her that we do not have to make a choice between the US and the EU. They are two key, long-term and important trading partners, and security and defence partners as well. The EU summit next month is a key event. Our aspirations remain for an ambitious EU reset on trade, to rectify flaws in the agreement made by the previous Government. Our objectives are clear and were all in the manifesto on which Government Members stood for election and won. They remain a key priority. I assure my hon. Friend that the alignment in Government between the EU reset and the US negotiation is very strong.

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

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  I greatly appreciate my hon. Friend’s advocacy for steel. She puts the case extremely well, which is that the kind of products that we make in the UK steel sector and which, in the main—where we export them to the US—are niche, high value and in critical sectors such as defence and the manufacturing supply chain, are complementary to the US. That is a good case of why I believe there is no need and no argument for the imposition of tariffs in the sector. Our steel sector is complementary to the US, whether that is in defence or the manufacturing supply chain. That is the basis on which we can find a way through this. My hon. Friend is right to say that the level of domestic support has increased considerably through the steel strategy and the £2.5 billion—£3 billion in total, including Port Talbot—that this Government have put forward. It is very important to us that we support the foundation industries. The steel strategy is a clear example of that.

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

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  I am grateful to my hon. Friend for his support and for mentioning some of the excellent local businesses in his area. On the impact of the pandemic and the war in Ukraine on supply chains, the private sector has been working with Government to look at vulnerabilities to ensure we do not have strategic weaknesses. We intend to include that vital work in the trade strategy, which is due to be published imminently, but that aspect of economic security is extremely important.

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

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  I am grateful to the right hon. Gentleman for how he has put that. I think he is right on where the burdens of policy fall in that area. It is not in anyone’s interest. No one wins a trade war; that is impossible. However, it requires us to react in a way that is calm, reassuring and pragmatic and which seeks a way forward. I can tell him that that is exactly what this Government will seek to do.

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

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  With permission, Madam Deputy Speaker, I would like to make a statement on the United Kingdom’s economic relationship with the United States. The UK has a strong and balanced trading relationship with the US worth £315 billion, which supports 2.5 million jobs across both our countries. This is second only to the EU, where our trading relationship is worth £791 billion. [ Official Report , 8 April 2025; Vol. 765, c. 6WC.] Yesterday evening the United States announced a 10% reciprocal tariff on UK exports, and it has today imposed a 25% global tariff on cars. That follows the application of tariffs of 25% on US imports of steel, aluminium and derivative products announced on 12 March. No country was able to secure an exemption from those announcements, but the UK did receive the lowest reciprocal tariff rate globally. And although that vindicates the pragmatic approach the Government have taken, we know that while the tariffs are still being levied the job is far from done. We are, of course, disappointed by the increase in tariffs on the UK and on other countries around the world. The impact will be felt among all trading nations. But I would like to update the House on how the UK can navigate these turbulent times, acting in our national interest and for the benefit of all our industries. I would also like to take this opportunity to thank my American counterparts, Secretary of Commerce Howard Lutnick, US trade representative Jamieson Greer, and special envoy Mark Burnett for their engagement over the past few months. While any imposition of tariffs is deeply regrettable, from the beginning they promised to make themselves available and they have been true to their word. I look forward to our continued engagement over the days ahead. As Members will know, since the new US Administration took office, my colleagues and I have been engaged in intensive discussions on an economic deal between the US and the UK, one that would not just avoid the imposition of significant tariffs but deepen our economic relationship. On everything from defence, economic security, financial services, machinery, tech and regulation, there are clear synergies between the US and UK markets. That is reflected in the fair and balanced trading relationship that already exists between our two countries. I can confirm to the House that those talks are ongoing and will remain so. It is the Government’s view that a deal is not just possible but favourable to both countries, and that this course of action serves Britain’s interests as an open-facing trading nation. I have been in contact with many businesses, across a broad range of sectors, including those most affected, who have very much welcomed this approach. It is clear to me that industry itself wants to grasp the opportunity a deal can offer and welcomes the Government’s cool-headed approach. In increasingly insecure times, I have heard some Members cling to the security of simple answers and loud voices. I understand the compulsion, but I caution Members of this House to keep calm and remain clear-eyed on what is in our national interest, not simply to proclaim that we follow the actions of other countries. The British people rightly expect the Government to keep our country secure at home and abroad, and an unnecessary, escalating trade war would serve neither goal. True strength comes in making the right choices at the right time. Thanks to the actions of our Prime Minister, who has restored Britain’s place on the world stage, the UK is in a unique position to do a deal where we can, and to respond when we must. It remains our belief that the best route to economic stability for working people is a negotiated deal with the US that builds on our shared strengths. However, we do reserve the right to take any action we deem necessary if a deal is not secured. To enable the UK to have every option open to us in the future, I am today launching a request for input on the implications for British businesses of possible retaliatory action. This is a formal step and it is necessary for us to keep all options on the table. We will seek the views of UK stakeholders over four weeks until 1 May 2025 on products that could potentially be included in any UK tariff response. This exercise will also give businesses the chance to have their say and influence the design of any possible UK action. If we are in a position to agree an economic deal with the US that lifts the tariffs that have been placed on our industries, this request for input will be paused, and any measures flowing from it will be lifted. Further information on the request for input will be published on great.gov.uk later today, alongside an indicative list of potential products that the Government consider most appropriate for inclusion. I know that this will be an anxious time for all businesses, not just those with direct trade links to America. Let me say very clearly that we stand ready to support businesses through this. That starts by ensuring that businesses have reliable information; any businesses that are concerned about what these changes mean for them can find clear guidance and support on great.gov.uk, where there is now a bespoke webpage. This Government were elected to bring security back to working people’s lives. At a time of volatility, businesses and workers alike are looking to this Government to keep our heads, act in the national interest and navigate Britain through this period. While some may urge escalation, I simply will not play politics with people’s jobs. This Government will strive for a deal that supports our industries and the well-paid jobs that come with them, while preparing our trade defences and keeping all options on the table. This is the right approach to defend the UK’s domestic industries from the direct and indirect impacts of US tariffs in a way that is both measured and proportionate, while respecting the rules-based international trading system. As the world continues to change around us, British workers and businesses can be assured of one constant: this is a Government who will not be set off course in choppy waters. The final part of our approach will be to turbo-boost the work this Government are doing to make our economy stronger and more secure, including our new industrial strategy. We will strike trade deals with our partners and work closely with our allies for our shared prosperity. We have a clear destination to deliver economic security for working people. We are progressing a deal that can do just that, laying the foundations to move quickly should it not, and ensuring that British businesses have a clear voice in what happens next. I commend this statement to the House.

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

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  Those are very wise words, and I am grateful to my hon. Friend for putting them on the record. Defence spending is crucial for our national security. The big change and uplift that we have seen is a big part of that, but he is right to say that it would be wrong for anyone in this country to think there is not a domestic economic dividend for that. Those jobs are spread all around the United Kingdom, including in places that are really reliant on them, so it is great news on the economic front for all parts of the UK and Derbyshire—Rolls-Royce is a great example of that. My hon. Friend talks about how we can get this right with our relationship to the US. We already have some great things under way. We can think about the AUKUS agreement, in which the US treats domestic UK suppliers as part of the domestic supply chain; there is equivalence there. We can think about steel and the role that Sheffield Forgemasters plays, for instance; that is a crucial part of the defence supply chain for the US. These are really important and mutually beneficial strengths to recognise. If we look at the facts and at how our trade inter- dependencies work, there is a great prize on offer if we get this right.

• 1 Apr 2025 · Product Regulation and Metrology Bill [Lords] · Hansard source

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  I am really grateful to the hon. Gentleman for engaging with the issues about product safety and consumer protection in the Bill, and he is making a serious speech in relation to them. First, on the point of the customs union, which was skilfully woven into his speech, that would preclude us from reaching any arrangements with the United States, India, the Gulf states or other countries. For my money, if we wish to be part of something without a say in how it would affect our trade policy, that would be a very difficult position to take. I will come back to the references made by Conservative MPs, who often feel like they are fighting the old, last war. They cannot get past it—

• 13 Mar 2025 · Small Business Support · Hansard source

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  I agree 100% with my hon. Friend and thank her very much for her question. She will know that my Department, alongside the Treasury and the Ministry of Defence, convened a roundtable in December to listen to these perspectives, and now all three Departments are working together to ensure that the problems she has articulated do not occur. It is essential that the British people do not think that the substantial, significant and historic investments in defence that this Government are making come in some way at the expense of domestic prosperity. There is no prosperity without security, but we should also acknowledge the tremendous economic contribution made by our defence sector—there is not a foreign and domestic split in that regard. I thank my hon. Friend for her outstanding leadership in galvanising parliamentary support for that campaign, and I hope it will have unanimous agreement in every part of the House.

• 19 Dec 2024 · Harland & Wolff · Hansard source

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  With your permission, Madam Deputy Speaker, I shall make a statement on the UK shipbuilding firm Harland & Wolff. I am pleased to inform the House that, subject to approvals, a commercial deal has been reached that will protect jobs, drive investment and secure the future of the workforce. The deal will see Navantia UK, a specialist in shipbuilding, purchase all of Harland & Wolff’s shipyards. As right hon. and hon. Members will know, Harland & Wolff is a major employer in Belfast, with additional important yards at Arnish and Methil in Scotland and Appledore in Devon. For more than 150 years, the firm has built famous vessels for notable shipping organisations and companies, including the Royal Navy, the Royal Mail and the White Star Line. This industry-led deal, which we expect to complete shortly, will secure all four of Harland & Wolff’s shipyards, protecting around 1,000 jobs right across the UK. I hope that this announcement will come as some relief to Harland & Wolff’s employees. I realise that this has been a deeply worrying time for them, and for everyone affected by the continued speculation over the firm’s future. I welcome Navantia UK’s intention to work closely with the relevant unions to protect workers’ existing terms and conditions. That is important for the hard-working employees and communities who have served the firm over many years. I was first informed that Harland & Wolff was in serious financial difficulty on day one of the new Government. As the previous Government had open-book arrangements with the company, it was clear that the firm had significant and unsustainable debts. Members will be aware that, at that point, Harland & Wolff was seeking a Government guarantee or liquidity loan. Had that occurred, the British taxpayer would have been put at significant risk of losing millions of pounds, without the safeguarding of any yards, jobs or ships. I believe that the possibility of the Government providing such a guarantee or loan, which was much speculated on in the press, was preventing a market-based solution. The former Government’s inability to make a decision left the yards and the workforce in limbo. That is why I made it clear in my first weeks in this job that no taxpayer guarantee or loan would be provided. I was dismayed that when I did so Conservative Members opposed that, knowing as they did that with a guarantee or loan there stood a significant risk of losing an eye-watering amount of taxpayers’ money. That was deeply irresponsible. Crucially, the deal that has been agreed will secure the delivery of the fleet solid support contract of the Ministry of Defence. The Government have worked closely with Navantia UK on the future of the FSS programme. We have agreed the absolute minimum of changes to the contract to ensure its continued delivery. Navantia UK is the prime contractor of the Team Resolute consortium, which is charged with building three logistics support vessels for the Royal Navy, and it will maintain the required portion of UK-only build as part of this deal. It is also worth saying that FSS is a vital component of the UK carrier strike capability, providing munitions, spares and stores. At a time when strategic alignment with our NATO allies is more critical than ever, the Government fully endorse this deal, which will also see Navantia UK invest significantly on commercial terms in Harland & Wolff shipyards. Anyone familiar with Navantia UK will know that the firm boasts strong expertise in naval shipbuilding. I am pleased that, thanks to this agreement, it will continue to bring the next generation of technology to its operations here in the UK. This is quite simply a good deal for the Harland & Wolff shipyards, a good deal for its employees, and a good deal for British shipbuilding. It provides the best opportunity to sustain our essential sovereign shipbuilding capacity and capability, now and over the long term. Defence is at the heart of the industrial strategy that we have identified. Defence is one of our eight growth-driving sectors of the UK economy. That industrial strategy is unreservedly and unashamedly pro-business, engaging on complex issues that are currently barriers to growth and investment. National security is one of the foundations of our plan for change. Without it, we cannot deliver on our milestones to raise living standards across the UK, with good, skilled, productive jobs like those at Harland & Wolff. UK shipbuilding alone supports some 42,500 jobs nationwide and adds £2.4 billion to the economy every single year. We recognise how important it is, as a vital pillar of our civil and defence industrial base. That is why my Department, together with the Ministry of Defence and the National Shipbuilding Office, is doing everything that we can to bolster our world-class shipbuilding industry. That includes the significant progress that we are making on key procurement programmes. We have a major contract with BAE Systems, which has increased the order from three to eight Type 26 anti-submarine warfare frigates on the Clyde, and a contract with Babcock for five Type 31 general purpose frigates at Rosyth. Those projects have already brought significant recapitalisation investment to shipyards throughout the UK, and there are further procurements to be won, ranging from Border Force and local councils to marine in-port service vessels at His Majesty’s naval bases. The Government are absolutely committed to supporting vibrant, growing and successful shipbuilding and fabrication industries across the country, and I pay tribute to the skilled, diligent workforces who have made these industries what they are today. Thanks to the deal that has been announced, workers in Belfast, Arnish, Methil, Appledore and right across the country can be confident that the Government are squarely behind them, that UK ship- building is secure, and that together, as a United Kingdom, we will lead the sector into a better future. I hope that all workers in all four yards are now able to enjoy this Christmas with their families, as they should. I commend this statement to the House.

• 19 Dec 2024 · Harland & Wolff · Hansard source

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  I very much share the right hon. Gentleman’s aspirations. He will know that most defence steels are higher end—they are specialised and tend to come from electric arc furnaces—and one challenge that we have inherited relates to the two remaining blast furnace sites in the UK. We have improved the situation in Port Talbot, but we could not change direction, with the blast furnaces going offline before the arc furnace was installed. We have inherited an even more challenging position in relation to Scunthorpe, but we are working closely with the company to find a solution. I believe that we are missing real capabilities in the UK. I can see the economic and business case for plate mill, for instance, and for the long-term question of direct reduced iron in steel production. The steel strategy is part of delivering on that. A whole range of horizontal policies, particularly on energy prices, would have to be in a corresponding position for us to do that. The fact that the UK has such a small steel sector relative to the size of our economy makes us an outlier among developed nations and suggests that there is a real evidence base for improving it, and I will work with any Member of the House to deliver that.

• 19 Dec 2024 · Harland & Wolff · Hansard source

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  Absolutely, Madam Deputy Speaker. I very much welcome the question and would like to put on the record that I have only good things to say about His Majesty’s Treasury at all times. [ Laughter. ] It is true; I mean that. The hon. Gentleman is absolutely right to say that there is great imperative—with a particular degree of responsibility in the defence part of the industrial strategy—in the challenges we face. It is imperative not just that we work closely with colleagues in the Ministry of Defence on procurement issues and Government-to-Government sales, in which my Department plays a major role, but that we address wider regulatory issues. As the hon. Gentleman may know, the Department recently did work on environmental, social and governance criteria to ensure that they do not prevent investment into defence companies. There are issues with small and medium-sized enterprises in the defence sector struggling to access bank accounts—not through a prohibition on defence, but perhaps because of a lack of understanding about such commercial contracts being different from those in other parts of the economy. There are a whole range of issues that we must get right, but I think that, in the main, Members across the House share his aspirations and objectives. He has been a voice of expertise and authority on these issues throughout my time in Parliament, and I am grateful for his engagement on them.