Jonathan Reynolds MP: speeches

Speeches

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

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  I thoroughly agree. It is an exciting day and the challenge is long-term consistency and reliability—which, frankly, this Parliament and previous Governments have not supplied. There is a key voice from business to us that we need to address. Digital and tech skills are one of the prominent features of the skills interventions in the industrial strategy in order to do what the hon. Lady says. It is a significant funding package and a significant partnership with businesses, who are telling us they want to work with Government and with young people and that they want to reskill people. I think there is more we can do, but this is the start. I am keen to work with the hon. Lady and any colleague who sees the urgency of this work and the benefits it could bring.

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

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  My hon. Friend raises some very important and serious questions. Universities play a huge role in innovation and are a vital part of the clusters we are creating, but in themselves, they are something of which we should be incredibly proud. We have a world-class university sector, and every parliamentarian should be prouder of that. I do not have time to go into the detail that I would like, but universities are at the heart of our approach to innovation and economic success across the UK.

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

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  I thank the hon. Lady for the slightly positive tone of her question. I believe that the skills challenge for the UK is about not just making sure that there are opportunities for young people, but reskilling people too. We have taken forward some interesting measures inherited from the previous Government that will allow us to do it. I would just say to the hon. Lady that when she condemns people who work in what she calls fossil fuel industries— [Interruption.] Well, perhaps “condemns” is too strong a word, but I ask her to recognise that we have sectors of our own economy that are, relative to other parts of our own economy, high-emissions industries, but on an international basis they are very competitive. It would not be appropriate to simply outsource those emissions to other parts of the world and import those products. There is a lot of Green policy that, frankly, does propose that we do that, but that is not the approach that the Government are taking. We are ambitious about those sectors for the transition and this industrial strategy is key to making it happen.

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

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  I welcome the hon. Gentleman’s support and the contribution his local area can make. In some areas, we have a lot of good things going on, but it needs to happen faster and we have to make sure that we execute the plans we have in place. That sounds like exactly the sort of challenge in this area that we should commit to.

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

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  I welcome the question from my honourable namesake. I hope he is not still getting my emails; I get a few of his, and I try and help out where I can on those local issues. He is right: we have inherited a lot, and there is a devolved landscape to this as well. People often ask—we had a conversation in the Select Committee about this—why we do not bring them all into one organisation. It is important to understand that they play key different roles. I cannot remember what page of the industrial strategy it is on, but the different parts of the journey those different organisations represent are specifically addressed. They are there to do different things. Of huge interest to me is the scale-up point—the serious business-to-consumer point. I think people recognise that there is a lot of capital in the world, but the question is whether it matches the risk profile and opportunities of businesses in the UK. We all recognise the tremendous innovation in this country, but do we always get the long-term benefits of that scale-up happening in the UK rather than going abroad? We do not, and that is what we are seeking to fix. That is the fundamental mission that we are all united behind.

• 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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  Madam Deputy Speaker, my hon. Friend the Minister for Data Protection and Telecoms has just told me that it is £141 million, not £41 million, to put wi-fi on the trains. It has been quite an exciting day, but it is important that I put that on the record. Energy prices are one of the fundamental parts of the strategy. As I say, the supercharger can be put in place by the financial year 2026-27; the British industrial competitiveness scheme will have to follow a longer process, including a legislative process, so that would happen in the financial year after that. I know how important this is, but once those plans are in place, businesses will have the certainty that that is the cost that they will face, and they can make their business plans and any investment decisions based on that.

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

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  Further education has had a difficult time over the past few years and we are starting to see the kind of investment that will make a difference. We need more business input into skills’ policy, which I think is the kind of work that my hon. Friend was talking about. I am more than happy to come up the road from Stalybridge to Rochdale one Friday, and we can have that conversation in person. There will be many bids from Greater Manchester for the capital that we are putting forward, and I look forward to looking at the bid that he mentions.

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

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  That is a great question. I remember our conversations about critical minerals, Madam Deputy Speaker. They are a key enabler and they will be even more important in the future. My hon. Friend will know that some of the National Wealth Fund’s initial investments have been into different critical minerals businesses in his region, because of the importance of that part of the UK to this strategy. We need more international co-operation on critical minerals as well, but he should rest assured that the British Business Bank and the National Wealth Fund are focused on this area because it is so important, and there will be big benefits to his area from that.

• 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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  I welcome my hon. Friend’s question; he is right that VPAG is significant to the life sciences sector plan and that the industry is looking for resolution on it. The life sciences sector plan will be formally launched by Cabinet colleagues to coincide with the anniversary of the foundation of the NHS. Talks with industry are ongoing and we are trying to find a settlement, which I believe is possible. We should all recognise the economic benefits of the sector for his constituency, which he carefully outlined.

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

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  I am more than happy to tell my hon. Friend. We have breakdowns for every region going to every colleague; there is so much for each part of the UK that I could not possibly do it justice from the Dispatch Box. On his point about clean energy, there is so much money coming into the UK—and more in future—that it would be crazy to turn our backs on that. This is a major economic opportunity, as well as being about a safe, reliable, clean supply of energy for the UK, which is the basis of all economic activity. We can provide that while reducing energy bills for industry, so that is exactly the kind of consistent approach that this country has needed for some time.

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

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  First, let me congratulate my hon. Friend on her recent honour. [Hon. Members: “Hear, hear!”] I know that she is not one for a fuss, but it is inspiring, and it is great to see that recognition. My hon. Friend is right that access to finance is a pillar of the industrial strategy. For instance, in the spending review, the British Business Bank’s capacity was increased to up to £4 billion, and the maximum ticket it could write was increased to £60 million as part of that. We also had a huge increase in the capacity of UK Export Finance in the spending review—as my hon. Friend knows, the north-east is a huge exporting region and has the most positive balance of payments of any English region—and its direct lending capacity has increased as well. We now have a story on finance from UKRI and Innovate UK for innovative start-ups, to the British Business Bank for scale up and maturity, going to the National Wealth Fund, and UK Export Finance supporting every part of that journey. That comprehensive offer is detailed in this strategy document, and it will benefit all parts of the UK, including of course the north-east of England.

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

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  I am tremendously excited by the opportunity my hon. Friend outlines. There are many tools she will recognise in the strategy, including the funding for innovation and for local economic development, and particularly the new strategic sites accelerator—for the first time, land assembly, getting the grid and planning in place—so we have these opportunities for the kind of inward investment offers that we receive. My hon. Friend has a very exciting local proposition, and I am looking forward to working with her on it, but we need more of them.

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

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  I very much appreciate my hon. Friend’s question. She will see a whole range of tools in the place section that are available to both mayoral and non-mayoral areas, which will help to shape local economic plans. She will also see measures to attract inward investment and to strengthen its voice in all the regions, and a whole range of policies that speak directly to business. We are building on the tremendous history and expertise in her area; it will be good news across the board.

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

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  There are parts of the skills package that allow for short courses, more flexibility and more foundational apprenticeships, which I think speaks exactly to the challenge the hon. Gentleman puts. If he writes to me on any specific issues relating to the towns fund in his constituency, I will get those answers.

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

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  So fuelled by optimism am I today that even the shadow Secretary of State cannot bring me down. Having been in opposition for some time, I can say that, “This document is all rubbish and I welcome most of it,” is quite an exciting take on a response. The Conservative party has managed to oppose almost everything that the Government have done in their first year, including, in my Department, the Product Regulation and Metrology Bill, which the previous Government were planning to introduce had they remained in office, and the India trade deal, which they were negotiating but could not get across the line, so I welcome the small bits of positivity in his response. Everyone across the House should support the strategy. It is based on things that will not be secrets to hon. Members who spend time with businesses on constituency Fridays and at weekends. They will be told about skills, energy, access to finance and how local areas should have the powers to address the needs in their local economies. I hope that the shadow Secretary of State would recognise, in good spirit, that many of the problems that need to be addressed grew under the Conservative Government. For example, the fact that energy bills became so uncompetitive was a result of actions and decisions of the Conservative Government. We are fixing that problem, in order to make a difference. On skills, one in eight young people are not in education, employment or training, while net immigration is at 1 million. That is not a policy success. It needed to be addressed. We needed to address, too, the failures on the funding of courses such as engineering. That was such an obvious need for our sectors. Finance is one of the longest-running problems; we are all familiar with it. The shadow Secretary of State asked a number of questions, and I am more than happy to answer them. On small businesses, if he reads more of the detail when he has a bit more time, he will see that small and medium-sized enterprises play a vital role in the creative industries and defence sector plans. To anyone who asks, “What’s the message to businesses that are not in sectors covered by the industrial strategy?” I say that they will benefit from people having good jobs and high incomes. Whether they are in hospitality, retail or leisure, they will see a direct benefit from the strategy. The small business plan will come out in July, and it will deal with issues such as late payment, business support and access to the kinds of tools—rental auctions and so forth—that will make a difference on the high street. The shadow Secretary of State attacked net zero. That is a mistake. Why would we turn our back on billions of pounds of investment and all the benefits it could bring? In particular, becoming a country that is not so reliant on volatile foreign gas prices is an obvious thing that we would not want to turn our back on. He seemed to announce a new Conservative position of opposing CBAMs, which deal with carbon leakage and create a level playing field. I am surprised by that, because the previous Conservative Government were strong advocates of them. On the bioethanol industry, talks continue with the two plants most directly affected. Of course, they were in a challenging position before the US trade deal; the deal was not in itself the cause of that. They were losing money. If I intervene, I must have a route to profitability, and that is the basis of those conversations. We are committed to precision breeding. Businesses that moved to France would find a more restrictive environment there because of EU regulation, so I would not recommend that. On OneWeb, there are some specific issues, about which I would be more than happy to talk to the shadow Secretary of State. On regulation, we have already taken decisive action, for example with a strategic steer to the Competition and Markets Authority, which has been warmly welcomed by businesspeople. They ask me for more of that, and that is exactly what we intend to bring forward. Finally, let me say, because I know that this is so important to colleagues, that I am more than happy to offer a briefing to any Front-Bench spokesperson or group of colleagues across the House. There is so much in the strategy that will make a difference and so much detail worth sharing, and I would be more than happy to do so with colleagues. Let us all get behind the strategy and get behind British industry.

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

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  I thoroughly agree with my hon. Friend. It is brilliant to see her in Parliament as she has been a trailblazer on these issues, and I recognise the case that she has put forward extremely well. I recognise that this is a core economic priority for the United Kingdom, and it is great to see her as an advocate for that on the Government Benches.

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

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  Well, I think that was a positive response to the industrial strategy. It certainly sounded like there were some positive themes there. The hon. Member asks a reasonable, specific question about her constituency, and I will check that with officials and write to her so that she has the correct information. If she has had a chance to look at it, she will see that the strategy includes big commitments to the advanced manufacturing R&D budget for a whole range of sectors. We are putting in the money that perhaps was not as firm as it is now in the national finances, but we also have long-term plans in many of those sectors around quantum, advanced manufacturing and aerospace 10-year settlements, for example, to give the kind of assurance and consistency we really need, but I will get her the specific answer she needs.

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

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  Yes, our officials are in close contact with all our partners in all the devolved Governments. We respect policy differences through devolution, but the kinds of things we are addressing are of interest to every part of the UK.

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

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  Derby has an incredible pedigree in engineering skills. I agree with the case that my hon. Friend has made so strongly. I have added some funding from my own Department to that from the Department for Education around engineering, because the shortages are so acute and the opportunities so great. These are great jobs, careers and lives for young people or anyone transferring into that sector, with more funding for the courses, more flexibility in the courses that can be run and more capacity in technical excellence colleges. Although it is also about availability in all parts of the country, we could not get a better pedigree than my hon. Friend has in Derby, which is a great success story for this country and for her local area.

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

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  I say to my hon. Friend that I think Ceramics UK is misplaced in that criticism. Ceramics is recognised as a foundational sector: it is part of the materials foundational sector in the strategy. Its principal request is about energy prices. There are some ceramics businesses—I accept not that many—that get the supercharger and that will get the more generous rate. But fundamentally, the costs of a lot of those businesses do not match the intensity test, which the supercharger is based on—a sectoral and then an individual business test. That is exactly why the British industrial competitiveness scheme has been designed in such a way that they will benefit from it, and that will be a game-changer for them. There are not the same policy tools around gas prices, but of course we can see that gas prices are projected to fall from the very significant level that they have been at for future financial years.

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

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  I very much welcome my hon. Friend’s comments in welcoming the strategy. There is a great deal that I could go through. I would get in trouble with you, Madam Deputy Speaker, if I mentioned the benefits for every sector in the document, but I think we would all recognise the pressure on the ceramics sector through energy prices—much of the industry is gas-intensive, and there are not policy tools for dealing with that in the same way. Only a small number of ceramics businesses currently benefit from the supercharger—I think only eight in total—which is why the test for the British industrial competitiveness programme is a different one. There will be a proper process to assess thresholds and eligibility, but it is designed in such a way that foundation sectors—ceramics is very much included in the material side of that—would get the benefit of the programme.

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

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  I recognise the case that the hon. Gentleman makes. Some of the courses that we need and that are central to our economy—engineering is a good example—are more expensive to put on and need greater capacity. When I talk about a funding package, it is to deliver the business-led, needs-led courses to which he refers, and I would expect Harrogate college to feel the benefits of that.