debates/debates2025-05-01a conversation_1
Source: hansard.parliament.uk (2025-05-01)

UK Parliament Hansard data: debates/debates2025-05-01a conversation_1

Jade Botterill:What recent steps his Department has taken to encourage small businesses to export. \p Gareth Thomas: We have begun a series of roadshows, which bring overseas buyers to the UK to meet small businesses here in, for example, clean energy, advanced manufacturing, life sciences, technology, and digital, creative, financial and professional services. In addition, we are offering new online support to help small and medium-sized enterprises win new export orders to EU markets. \p Kirsteen Sullivan: I know from a recent business roundtable I hosted in my constituency of Bathgate and Linlithgow, and from many meetings with industry, that a common barrier to small business exports is supply chain instability. In the past few years, we have seen massive instability, including from the impact of the pandemic and now from the announcement of tariffs. Disrupted demand forecasting, increased costs of raw materials and uncertainty are damaging fledgling businesses in growing their exports. What specific measures is the Department implementing to help small businesses navigate these challenges, and to ensure they can maintain reliable supply chains as we enter another turbulent time for international trade? \p Gareth Thomas: I thank my hon. Friend for that question, and I commend her for the business roundtable that she hosted. She is absolutely right, and we recognise that supply chain instability is a critical issue for businesses. We are therefore working hard to minimise the uncertainty that businesses face, both in exporting and in purchasing from key markets. Whether through the economic deal with the US that we are seeking to negotiate, the reset of our relationship with the EU, or new opportunities with  India and the Indo-Pacific, we are keen to take down barriers to business. I have to say that the evidence continues to demonstrate that free and fair trade drives down prices, offers better choices for consumers and, crucially, leads to more stable supply chains. \p Jade Botterill: I recently visited Phoenox Textiles in Denby Dale, a family-run business that proudly continues our community’s heritage in the sector. It raised the concern that, while it operates a “zero to landfill” operation, low-quality, unsustainable imports from Chinese sellers such as Temu undercut its business and the local growth that it sustains. How are the Government addressing this concern, and what are they doing to support British businesses? \p Gareth Thomas: First, I commend the work of Phoenox Textiles and my hon. Friend for championing its concerns. Because of the concern she has articulated, which we have heard from across the retail sector—I have certainly heard it from members of the Retail Sector Council—my right hon. Friend the Secretary of State recently met the Trade Remedies Authority to agree urgent steps to prevent the dumping of cheap goods in the UK. There will be increased support for businesses to report unfair practices, and my right hon. Friend the Chancellor is also reviewing the customs treatment of low-value imports. \p Nick Timothy: Last year our trade deficit was £32 billion and, apart from during the pandemic, we have run a deficit every year since 1998. Does the Minister agree that the trade deficit brings severe economic consequences, and is it Government policy to reduce it over the course of this Parliament? \p Gareth Thomas: The hon. Gentleman is right to highlight the fact that we need to increase exports to all sorts of markets. It is one of the reasons why we are taking urgent steps to agree a new deal with the US, why we are seeking to reset our relationship with the EU, and why we are keen to open up new opportunities through a free trade agreement with India, and new opportunities in the Indo-Pacific. When he served in a senior role under a previous Prime Minister, his party took decisions to cut support for exporters. We are looking at what we can do to help exporters move forward. \p Saqib Bhatti: The Minister will know that Meriden and Solihull East is proud to be the home of Jaguar Land Rover. JLR, the supply chain and the small businesses in it are crucial, not just for the constituency, but in exporting. I have written to the Secretary of State asking for a meeting, and I am very willing to work with the Government on this. I recently visited Washington and spoke to Congress people about the damage that tariffs can do. What is the Minister doing to help not just JLR, but those small businesses, and how we can work together? \p Gareth Thomas: I know my right hon. Friend the Secretary of State is urgently seeking to arrange the meeting with the hon. Member to discuss this issue, because we recognise that this is a key concern of the automotive sector. As I have said, we are seeking to negotiate an economic deal with the US, but we are also looking to work with the automotive industry to increase  exports of cars and other things that they produce across all sorts of new markets. One of the roadshows we are organising for small businesses is about that. \p Lindsay Hoyle: I call the shadow Minister. \p Harriett Baldwin: The Government are far from supporting small businesses to export. Businesses of every size, up and down the country, are failing at a rate not seen since the 2008 financial crash, when Labour was last in power. Confidence is slumping, family businesses are closing, millionaires are fleeing the country—and that is before tariffs hit. What representations is the Minister making to the Chancellor about reversing some of the measures that hit business in her Hallowe’en Budget? \p Gareth Thomas: I had thought that one of the first contributions from the Opposition Front Benchers today would be to celebrate the £1 billion investment by IKEA in the UK. It is opening its flagship store on Oxford Street today, and committing to a range of investments in other towns and cities across the UK. When the hon. Lady was on the Treasury Committee, I do not know whether she looked at the cuts the previous Government made to help for small businesses in getting their goods into new markets. We are taking active steps to increase the opportunities for small businesses in overseas markets.