debates/debates2025-10-30b conversation_4
Source: hansard.parliament.uk (2025-10-30)

UK Parliament Hansard data: debates/debates2025-10-30b conversation_4

Euan Stainbank:What recent progress he has made on implementing the industrial strategy. \p Blair McDougall: The whole of Government are focused on delivering the industrial strategy, and significant progress has already been made. This month, we published our new quarterly update, which reports on the key economic indicators for growth-driving sectors, delivery milestones and major investments. With over £250 billion of investment committed and over 45,000 jobs supported since July, we are delivering on that vision. \p Henry Tufnell: Mid and South Pembrokeshire plays a vital role in the UK’s energy sector, supplying 20% of the UK’s energy. This Government have recognised that the future of Britain’s energy security depends on Pembrokeshire, identifying us as a key growth region and investing in our workforce with an £800,000 skills pilot. Will the Minister set out how the industrial strategy will help empower communities from Pembroke Dock to Milford Haven to continue to lead the way in our energy security and help generate local economic growth? \p Blair McDougall: My hon. Friend has been a constant advocate for the energy potential of Pembrokeshire. That is why the industrial strategy supported south-west Wales’s clean energy potential through targeted investment in infrastructure and workforce development. The strategy will build on that using the potential of the port of Milford Haven, floating offshore wind in the Celtic sea and carbon capture technologies. The £800,000 skills pilot that he refers to underpins that clean energy industries sector plan. The National Wealth Fund will also benefit Wales, as it will invest in the sectors he mentions that are prevalent in that area. \p Noah Law: Cornwall has a huge role to play in making Britain a clean energy superpower. As Ministers will be aware, much thought has already gone into the making of an industrial strategy for Cornwall. The crucial piece now is to unlock the funding needed for industrial and economic development, particularly in the wake of the shared prosperity fund coming to an end. What discussions has the Minister had with colleagues in the Ministry for Housing, Communities and Local Government about the prospect of a set of investment measures to replace shared prosperity funding and ensure the realisation of Cornwall’s unique industrial potential? \p Blair McDougall: I know from holidaying in my hon. Friend’s constituency that it is a place of incredible beauty, but I know from his constant advocacy that it is also a place of huge industrial potential. Cornwall will benefit from access to the £200 million investment fund, which provides debt and equity finance of up to £5 million for businesses in the south-west. That has already delivered £51.8 million of direct investment, leveraging an additional £48.1 million. I know he has big plans for industry in Cornwall, and we will work with him, especially on access to finance, to ensure that we can unlock that potential. We will of course work with our colleagues in MHCLG. \p Euan Stainbank: I declare an interest as co-chair of the all-party parliamentary group for British buses. Our bus manufacturing industry supports thousands of jobs across the country, but faces an existential challenge from China. Market share has increased rapidly, and the Scottish National party’s disastrous ScotZEB 2 scheme sent less than 20% of orders to Scotland’s sole manufacturer, which directly jeopardised 400 jobs earlier this year. What urgent interventions are Ministers considering to contend with the rise in Chinese market share? Has the Minister discussed this issue with colleagues in the Department for Transport prior to the publication of the 10-year bus pipeline next month? Record bus funding should not be a shopping list for China. \p Blair McDougall: I share my hon. Friend’s frustration at the lack of an industrial strategy from the SNP Government in Edinburgh. It has meant that workers at Alexander Dennis in his constituency are on furlough rather than doing what they do best: making world-class buses for public transport. For our part, we are supporting combined mayoral authorities to co-ordinate the procurement of buses through a Crown Commercial Service commercial agreement, and we are publishing a 10-year pipeline of future bus orders to provide the much-needed certainty that the sector requires. That includes providing advice on using social value criteria that suppliers such as Alexander Dennis are well placed to meet when procuring new buses, such as creating and retaining jobs in a way that respects our legal obligations. I pay tribute to my hon. Friend for keeping this issue on the agenda. \p Lindsay Hoyle: It is no use the Secretary State looking at me with a grin as though I am out of order. We are still only on the second question and I have to get some other Members in—that is all I am bothered about. It will get worse shortly—I have got Jim to come! I call Robin Swann. \p Robin Swann: I will not take the dig about being short personally, Mr Speaker.

The industrial strategy and the strategic defence review both offer great opportunities to the entire United Kingdom. Can I seek reassurances from the Minister that he will work with the Northern Ireland Executive to ensure that Northern Ireland and Northern Ireland businesses get benefit out of both? \p Blair McDougall: I can absolutely give the hon. Member that reassurance. I have already met with my opposite number in the Northern Ireland Executive. The hon. Member mentions defence industries in particular, and it feels like every single month there is a significant defence order as part of the industrial strategy. It shows that these are not just words on paper, but that we are delivering within the real economy. \p Jim Shannon: I welcome the Minister and, indeed, the whole Front-Bench team to their places—well done!

On the industrial strategy, what steps have been taken to fund high-quality workforce apprenticeships in sectors such as technology, manufacturing and hospitality, to provide young people with opportunities for employment and lives in those industries? Will the Minister undertake to discuss these matters with the relevant Minister at the Northern Ireland Assembly? \p Blair McDougall: As I said to the hon. Member for South Antrim (Robin Swann) a moment ago, we have already met with the Northern Ireland Executive on these issues. Skills are an essential part of the industrial strategy because we see, again and again, industries around the country that are desperate to grow, and have the orders, but are unable to create the high-paying jobs that we need. That is an absolute priority for us as we implement the industrial strategy. \p Lindsay Hoyle: I call the shadow Minister. \p Gareth Davies: Labour’s industrial strategy recognises that housing and infrastructure are vital to driving regional investment. But as I hope the Minister will know, across the road, the Treasury has been quietly consulting on changes to the landfill tax, ending the decades-long exemption for quarries. That change would add millions of pounds on to infra- structure projects and increase tax costs for construction businesses across the country. How would such a move help grow our economy and build the homes and infra- structure that we need? \p Blair McDougall: We are fast approaching the time of year when I have to tell my children that they will have to wait until Christmas to find out what their presents are. The hon. Gentleman knows that he has to wait until the Budget to find out what is in the Budget. He mentioned planning. We have made huge changes to planning rules, which have resulted in a saving of about £272 million in red-tape costs for business, so we are ensuring that that sector, in particular, has the environment it needs to contribute to growth. \p Gareth Davies: I am afraid that is not good enough. The industry is facing deep uncertainty around the kite flying going on across the road at the Treasury. I realise that he is not responsible for that, but he needs a better answer for the construction industry. The Construction  Products Association has just cut its growth forecast for the sector to barely 1% next year, warning that the uncertainty over new taxes is choking investment. I will ask the Minister again: how on earth will adding £28,000 to the cost of a new home, or 25% to road construction costs, through a new builders tax do anything other than cement the slowdown that Labour is overseeing in our economy? \p Blair McDougall: To stand up and raise uncertainty, and then complain about it, is quite something. The shadow Minister said that we are slowing growth; we were the fastest-growing economy in the G7 in the first half of 2025. We are now the fourth-largest exporter in the world, and we have had five interest-rate cuts in a row— \p Nick Timothy: Do you even know what the question was? \p Lindsay Hoyle: Order. Mr Timothy, you used to be an adviser who specialised in not answering questions; we do not need any help! [Laughter.] \p Hon. Members:: More! \p Blair McDougall: Thank you, Mr Speaker. I am glad that those on the Opposition Benches recognise excellence when they see it. \p Lindsay Hoyle: I call the Liberal Democrat spokesperson. \p Sarah Olney: I also welcome the ministerial Front Benchers to their new roles. The Liberal Democrats have long championed an industrial strategy. In government, we created the Green Investment Bank, the British Business Bank and the regional growth fund, and we opposed the Conservative Government’s damaging decision to scrap the industrial plan. We welcome the industrial strategy’s return, especially its focus on investing in skills.

However, businesses know that the apprenticeship levy does not work: funding is hard to access and millions go unspent. We welcomed the pledge in June to replace it with a more flexible growth and skills levy, but firms and young people are still awaiting details. Will the Minister provide details of what training this will fund, so that businesses and young people can plan ahead with certainty? \p Blair McDougall: I thank the hon. Lady for her kind words on my new appointment. I will not get ahead of announcements on that, but given the importance of skills to the industrial strategy, we are not waiting for those announcements. We have had TechFirst, a £187 million investment in secondary school pupils, undergraduates, PhD students, entrepreneurs and businesses, to help them get ahead on that. We have the engineering package of over £100 million, and the defence package of £182 million. We are making those investments now to ensure that the pipeline is there for those industries, which are the priority within the industrial strategy.