Start-ups and Scale-ups: Access to New Markets

6. What steps he is taking to help start-ups and scale-ups access new markets.

We want to build new opportunities for start-ups and scale-ups to export around the world. That is why we are providing tailored market advice, free training through our business academy, export finance and support on the ground in international markets.

British fashion is recognised globally for its creativity. At the London Fashion Week just gone, designers such as Erdem, Tolu Coker and Simone Rocha showcased the very best of British talent. With international buyers up by 17%, we showed that we have not only the raw talent here, but the business minds to commercialise it internationally. What steps is the Department taking to help emerging British fashion brands translate that creativity into export growth and scale internationally?

My hon. Friend makes a really good point by raising th4e example of London Fashion Week. She is quite right that lots of businesses in Northamptonshire are working in this field. One key thing we do through NEWGEN is to provide support to people—including, in fact, some of those she mentioned, such as Erdem and Simone Rocha—to start finding new export markets overseas. We send people to Paris Fashion Week and to Pitti Uomo, and our creative industries are a really important part of how we intend to build on that in the future. To use the name of another business in her constituency, I think Weetabix is based there—and we want everybody to have three Weetabix for breakfast so we can really export around the world.

At the recent India AI summit, I was delighted to participate in an event, with the Deputy Prime Minister, highlighting the opportunities for British and Indian growing technology companies to do more in each other’s markets. I am looking forward to another such event in London in the coming weeks. Will the Minister join me in commending both our high commissioners—Their Excellencies Lindy Cameron and Vikram Doraiswami—for their steadfast commitment to strengthening the links between our two fantastic technology sectors?

The right hon. Gentleman makes a really good point. I noticed that he was commending the Government for securing the free trade agreement with India, which previous Governments were not able to secure, and he did so generously. Mr Speaker, I may have misled the House previously by suggesting that the India free trade agreement would enter into force this summer, because I am very hopeful that it will actually enter into force this spring.

The key thing is not just to have a free trade agreement, but to deploy it and make sure that businesses take advantage of that opportunity. Our two high commissioners—both in India and here—are absolutely essential to making that happen. I look forward to working with the right hon. Gentleman to do that not only in India, but in Ukraine, as I note he has been appointed to help Zelensky’s Government with reconstruction in Ukraine. I am the Minister for Ukraine reconstruction, and I hope we can work together to achieve that, too.

I call the shadow Minister.

We all want innovative British companies not just to start up in Britain, but to scale up in Britain, too. I welcome the Minister’s previous comments, and actually his enthusiasm, for our most innovative companies. However, he will know that the Chancellor’s decision to cut venture capital trust rate relief will be very damaging. How does he explain the disconnect between his Department’s words and what the Chancellor is doing?

We are trying very much to focus on the key sectors where we know we can really deliver, which is precisely what bringing together the trade strategy, the small business strategy and the industrial strategy is designed to do. I was delighted to be at the security and policing trade event down in Farnborough yesterday, and it was fascinating to see the small companies—SMEs make up a lot of that sector—that have really been supported by different Departments, including the Home Office, the Department for Business and Trade, and the Treasury, to scale up and take their product to market. I think I was able to persuade the Malaysian Government to secure quite a few contracts with British businesses as well.

I am grateful to the Minister for that answer, but I asked specifically about VCT rate relief. The last time that rate relief was cut, under the last Labour Government, fundraising was cut by two thirds and it took a decade for that to recover in the sector. Specifically on VCT rate relief, which has been cut from 30% to 20%, will he commit to meeting the Venture Capital Trust Association, the industry body, and will he take its concerns to the Chancellor and ask her to reverse course?

Of course, I am happy to meet the industry body and listen to its concerns, as we do all the time. However, I just want to make the point that at the moment the DBT is concentrating on taking what we do well in this country and really ensuring we have an opportunity to do it even better. That focus is a key part of what our trade strategy, our small business strategy and our industrial strategy are all about.