debates/debates2025-01-30a conversation_4
Source: hansard.parliament.uk (2025-01-30)

UK Parliament Hansard data: debates/debates2025-01-30a conversation_4

Paul Waugh:What progress his Department has made on developing an industrial strategy. \p Sarah Jones: This Department and, indeed, Departments across Government are working extensively on developing our industrial strategy, which the Conservative party opposes, but which business and industry welcome. Last month, we launched the Industrial Strategy Advisory Council, comprising a very impressive group of the UK’s top business leaders, policy experts and trade union leaders. My right hon. Friends the Chancellor and the Secretary of State for Business and Trade attended the council’s inaugural meeting on 17 December. In addition, we are currently analysing more than 3,000 responses to the Industrial Strategy Green Paper from businesses, academics, think-tanks and unions, and their insights and feedback are incredibly valuable as we develop the strategy. \p Alan Strickland: I strongly welcome the inclusion of defence in the draft industrial strategy and was pleased yesterday to host a roundtable in Sedgefield with the Minister for Defence Procurement and Industry. Many of the innovative small and medium-sized enterprises that we talked to spoke of the struggles that they have with red tape, bureaucracy and contracting with Departments across Whitehall. How will Ministers grab the opportunity of the industrial strategy to remove this red tape, which too often can thwart SME growth? \p Sarah Jones: I am really pleased my hon. Friend held that roundtable. It is quite a turning point to have an industrial strategy with defence as one of the sectors; building new relationships across Departments with colleagues who work in defence is a really powerful and important thing to do. He speaks to a wider problem face by a lot of industry when it comes to dealing with Government agencies and Departments. We are working hard to make these things easier, because growth is our priority and we have to break down those barriers. \p Tracy Gilbert: It is essential that the Government’s industrial strategy creates manufacturing jobs across the country, including in my constituency. The RenewableUK  offshore wind industrial growth plan shows the UK can be a global technology leader in advanced turbine tech, foundations, electrical systems and cables. Will my hon. Friend commit to using our industrial strategy to ensure there is growth in these areas to put British manufacturing at the heart of the clean energy transition? \p Sarah Jones: I thank my hon. Friend for her question, for her defence of her constituency and for her ambitions, which we share. I believe the report she refers to came out before this Labour Government came to power. With our new policies and the new drive and ambition from our Secretaries of State for Business and Trade and for Energy Security and Net Zero, we are powering forward with our renewable agenda, and we will make sure that all of our growth driving sectors speak to my hon. Friend’s area and everyone’s area of the country and drive growth across the board. \p Sarah Coombes: Manufacturers in my constituency are really excited about the upcoming industrial strategy and all the growth that will bring. However, steel and aluminium businesses in particular are concerned about the upcoming carbon border adjustment mechanism, the gap with the EU, and whether the whole system will be ready for implementation. If we do not get it right, the CBAM will have a big impact on our ability to trade and on growth, so can the Minister assure me she is going to be working with the Treasury to ensure we get this right and that it supports manufacturers in the west midlands? \p Sarah Jones: I know my hon. Friend will hold this Government to account on what we are doing and how we are going, and she will push, and already has done, to make sure we are doing everything we can for the industries in her area. The CBAM will be introduced in 2027, and she speaks to concerns that I have heard in conversations around steel in particular, which is very important to this country. That is why we are developing a steel strategy, which will set a future direction of travel for steel, but we are working with the EU and with industry here to make sure the CBAM works and does what it is supposed to do. \p Paul Waugh: Andy Burnham’s Atom Valley mayoral development zone is creating a world-class supercluster for advanced manufacturing right across 70 million square feet in Rochdale, Oldham, Bury and Middleton. Rochdale’s Kingsway business park will be home to the SMMC—the sustainable materials and manufacturing centre—a world-class cutting-edge research centre. Will the Minister join me in supporting the SMMC, and perhaps arrange a visit either by herself or the Secretary of State to see what is happening with the jobs of the future in Rochdale? \p Sarah Jones: I thank my hon. Friend for bringing to the House the work that is going on for the Atom Valley development zone, which is incredibly important and exactly what we want to see. The Mayor of Greater Manchester is to be congratulated for his leadership in this space as well. I am very interested in the work my hon. Friend refers to, not least because of the critical minerals strategy we are developing and the graphene work that I know will be under way in the manufacturing  centre hub, so I very much look forward to talking further to him about what is happening and how we can help. \p Desmond Swayne: Why is it that the Government’s energy policy is driving uncompetitive energy costs in absolutely the wrong direction? Sir Jim Ratcliffe has pointed out that the principal threat to any strategy is actually the uncompetitive costs for those enterprises that will have to populate it. \p Sarah Jones: This Government inherited very high energy costs from the previous Government, who had taken no action to make our country more energy secure. We are powering through to have clean, green, home-grown energy that will bring costs down and make sure we are secure as a country and not reliant on the whims of global leaders and the price of oil and gas. We will bring those costs down and we will support our industry, which I am afraid the previous Government failed to do. \p Chris Law: Over the past week, the UK Government have committed to support a runway in London, a football stadium in Manchester and a science corridor for Oxford and Cambridge, yet for the past year, Conservative and Labour Governments have failed to act to secure the long-term future of Grangemouth, after INEOS announced the closure of the oil refinery. Despite general election promises to step in and save the plant, why are the Labour Government willing to jeopardise jobs at Grangemouth, the country’s energy security, which the Minister has just spoken passionately about the need to secure, and the wider industrial strategy through this inaction? \p Sarah Jones: The hon. Member will be pleased to hear that we have re- established a working group with the Scottish First Minister and the Welsh and Northern Irish leaderships to make sure we are working collectively, because we do not want to take a party political approach to the growth of all our nations. We are collaborating well with the Scottish Government on Grangemouth, where we are working at pace and putting in investment and support. We are working to transition people from North sea oil and gas into the new energies of the future. There is the passport that we published, and we have set up Great British Energy, which will be headquartered in Aberdeen. A lot of work is going on, and we need the Scottish Government to support us in that work. We will work in partnership, because that is what will create good jobs. \p Gavin Williamson: The chemical industry is an important employer in my constituency, with the HEX Group and SI Group employing many people. As mentioned, Sir Jim Ratcliffe is already highlighting the extinction of the British chemical industry. My chemical manufacturers need to ensure that they are buying energy at the same price as manufacturers in Germany, the Netherlands and France. When will they be able to do that? \p Sarah Jones: The chemical industry has been suffering for many years because of the previous Government’s economic policies, crashing the economy under Liz Truss and failing to deal with energy prices over multiple  years. I have met the chemical industry. It is an important part of our economy, and we need to do what we can to protect it. I am having conversations, and we are building our energy policies. We are building our industrial strategy. \p Andrew Griffith: Word salad! \p Sarah Jones: Word salad? Gosh. That abuse from the Opposition Front Bench has cut me to the core. The industrial strategy has set out eight sectors that will turbocharge the economy. Across all those sectors lie our foundational sectors, of which the chemical industry is one. We will support that industry in a way that his Government failed to do. \p Nusrat Ghani: I call the shadow Minister. \p Harriett Baldwin: I will try to avoid a word salad. We have heard from various different industrial sectors how important it is to have stable and predictable energy costs. This month has seen little sun and only intermittent wind, so we have been heavily dependent on imported oil and gas. Are Ministers in the Department for Business and Trade challenging the Energy Secretary over his policies? \p Sarah Jones: I am disappointed by the hon. Lady’s approach to this matter, and I am disappointed by the Conservative party’s overall abandonment of previously strongly held views about the need to balance climate change with our economy. It is a fact that we are moving faster towards renewable energy. Last year, 50% of our energy came from renewables for the first time. We are growing them at pace because they are cheaper. Onshore wind is the cheapest form of energy we have, solar is very cheap and floating offshore wind brings us huge opportunities. Renewables will bring our costs down and make sure we are energy secure, and they go hand in glove with growth, as the Chancellor set out in her speech yesterday. \p Harriett Baldwin: The Minister’s Government have changed policy to not issue any new licences for domestic oil and gas, so we will become more dependent on imports at times when solar and wind are not working, unless we can increase nuclear generation. It is Nuclear Week in Parliament, so what pressure is she putting on the Energy Secretary to make new nuclear an important part of our industrial strategy? \p Sarah Jones: I sit jointly in the Department for Business and Trade and the Department for Energy Security and Net Zero, so the hon. Lady can be reassured that I talk to my colleagues and am working with them. Indeed, I am leading on hydrogen and carbon capture, which is an important part of the mix. We are clear that nuclear is an important part of our future and that the strongest approach to deliver energy security and bring prices down is to have all the opportunities available to us and to build at pace. That is why we are trebling our solar, doubling our wind and supporting big nuclear as well as small modular reactors. She can be reassured that we are putting a strategy in place, which the previous Government failed to do.