Houthi Attacks: Supply Chains

5. What steps her Department is taking to help protect supply chains in the context of the Houthi attacks in the Persian Gulf.

18. What steps her Department is taking to help protect supply chains in the context of the disruption to trade in the Red sea.

More than 15% of global shipping traffic passes through the Red sea, making it one of the most important strategic waterways in the world. Overall, a whopping 12% of global trade volumes use this trade route and my Department is monitoring the impact of events in the Red sea closely. I was previously the shipping Minister and now I am the Minister for advanced manufacturing, so I know that this is important to industry.

We are working to equip UK businesses with the tools they need to deal with global supply chain issues. Just last week, I published the world’s first ever critical imports and supply chains strategy in collaboration with industry. The strategy includes making the UK Government the centre of excellence for supply chain analysis and risk assessment, supporting our status as the world’s eighth largest manufacturer. This will help UK business to build secure and reliable supply chains, which are vital to the UK’s economy, national security and the delivery of our essential services.

I am sure the hon. Gentleman does not need to ask a question now, with all you have read out. Come on, Sir Michael!

I will think of one, Mr Speaker. As my hon. Friend has said, we are the eighth largest manufacturer in the world—and where is the centre of manufacturing? It is, of course, the west midlands. What advice is my hon. Friend giving to people such as Andy Street about what can be done to support businesses in the west midlands to overcome what I hope is a temporary difficulty?

My hon. Friend has hit so many markers in that question. He is absolutely right that the west midlands, and Birmingham in particular, are the heart of advanced manufacturing. I suggest that the Mayor catches up on supply chain reporting. I am more than happy to sit down and talk to him about that. We have worked with industry, including in the automotive sector, to ensure that supply chains can be as flexible and resilient as possible. Of course there are concerns about extended routes from that part of the world into Europe, but, as I mentioned earlier, we are the first country in the world to produce a strategy, working with industry to ensure that the UK continues to provide the data that it needs—

Order. Come on! I call Nicola Richards.

At a time when we are beginning to see inflation fall, recent developments in the Red sea are extremely concerning, not just in terms of security, but because of the huge cost to shipping. My constituents do not want an increase in prices as a result of the terror attacks. Can the Minister build on the excellent answer she gave to my hon. Friend the Member for Lichfield (Michael Fabricant) by reassuring businesses in my constituency that we will do all we can to maintain the flow of goods to and from the UK?

Absolutely. The UK will always stand up for the freedom of navigation and the free flow of trade. We take threats to shipping vessels in the Red sea extremely seriously. My hon. Friend is right to note that, fundamentally, there has been an increase in cost potential, including a 124% increase in freight rates, which is why we have produced a strategy and why we have a council that will continue to work with industry to ensure that supply chains are resilient and the situation has the smallest possible impact on our economy.