As Secretary of State for Business and Trade, my priority is to support UK companies to thrive at home and abroad, which is why this week I launched negotiations for an enhanced UK-Swiss free trade agreement alongside my counterpart, Federal Councillor Guy Parmelin. Trade between us is worth almost £53 billion and, as two service economies, a modernised agreement presents huge opportunities for the UK and Switzerland. I met representatives from SIX Swiss Exchange, the backbone of Swiss financial services, and several innovative start-ups at the fintech accelerator Tenity.
Fish and chip shops have been part of the fabric of British life for generations and should be the cornerstone of a revived domestic fishing industry. However, shops in the Lowestoft and Waveney area continue to face an ongoing triple whammy of high energy costs, high fish prices and the high cost of cooking oil. Will my right hon. Friend work proactively with the sector to agree a strategy that ensures the survival and subsequent flourishing of fish and chip shops?
My hon. Friend is a doughty champion for his local fish and chip shops. We recognise the importance of fish and chip shops to local communities and the challenges they face. We have introduced a range of support measures to address the specific issues he raises, including changes to business rates that, across the country, are worth a total of £13.6 billion in lower bills. We are also supporting non-domestic energy customers through the energy bill relief scheme, and we recently introduced the energy bills discount scheme, which runs until March 2024. We will keep working closely with the sector as part of the Hospitality Sector Council to improve the resilience of businesses, including the fish and chip shops in Lowestoft.
It has now been 100 days since we first welcomed the right hon. Lady to her new post. In that time, we have seen steel production fall to record lows; the automotive sector has issued warning cry after warning cry that Government policy risks shipping jobs overseas; and the US has seen incredible sums invested under the Inflation Reduction Act and the EU has put forward its own significant response. Meanwhile, the UK remains trapped in the Conservatives’ low growth, high tax loop, with the lowest business investment in the G7. This morning, three of her predecessors, each from a different political party, have said that the Government need an explicit industrial strategy. Does the current Business Secretary agree with them?
I thank the shadow Minister for highlighting that we have had 100 days as the Department for Business and Trade, during which we have been able to launch the biggest free trade agreement that the UK has seen since we left the EU and since the trade and co-operation agreement. He also mentions a lot of systemic issues, which have been faced globally. He rightly talks about the US IRA and the EU green deal industrial plan, but it is good for me to mention that we are doing a lot in this space. For example, the issue that the automotive industries are talking about relates to rules of origin. This is something that the EU is also worried out, because the costs of the components have risen. This is not to do with Brexit; it is to do with supply chain issues following the pandemic and the war between Russia and Ukraine. I have had meetings with my EU trade counterpart; we are discussing these things and looking at how we can review them, especially as the TCA will be coming into review soon.
Off the top of my head, I can say that during the pandemic the Government delivered an unprecedented package of support for businesses. In total, more than £22.6 billion was provided to businesses via local authorities. In Kettering, more than 5,000 covid-19 business grants were issued, amounting to £24 million. North Northamptonshire Council delivered £29.9 million to local businesses through the covid-19 business grant scheme.
T2. Dr Nikhil Datta from Warwick Economics noted that the £5.84 billion that UK consumers had paid in increased food prices by 2021 as a result of Brexit hit the poorest households hardest, as they spend a larger proportion of their income on food. Does the Secretary of State, the Minister or the UK Government accept that the most vulnerable households are paying the highest price for Brexit, especially in this ongoing food price inflation crisis?
The hon. Lady raises an important point. As she knows, one of the Government’s commitments is to halve inflation, which will also have an impact on food prices. We absolutely need to do that, particularly for those low-income households. That is why we directed support mostly at low-income households, with more than £2,000 a household this year and £900 in additional support for low-income households this year. This is a twin-track approach, tackling inflation and lowering food prices, and also providing direct support.
My hon. Friend raises an important point: more than 70% of our economy is services. Therefore, it is absolutely right that the Department for Business and Trade has a laser focus on services as well as goods, particularly in relation to international deals. Historically, some of those trade agreements have not covered services particularly well. The Secretary of State mentioned the Swiss agreement, which was silent on services. So my hon. Friend is absolutely right about this, and we have a hitlist of barriers we are working on. They relate to both goods and services, which are hugely important right across the country, including in his constituency.
May I draw the Minister’s attention to a Which? investigation into the lack of consistency in unit pricing by supermarkets? That makes it difficult for consumers to work out the real price of goods and, crucially, to choose between them. The Competition and Markets Authority is looking at this issue, but will the Government talk to the supermarkets too?
The hon. Lady raises an important point. Which? does fantastic work. The CMA acts independently, without ministerial influence, and it is right that it does. However, I am sure it is keeping a close eye on that matter. As I said in a previous answer, the best way we can regulate prices in the UK is through strong competition. We have a very strong, competitive market in the supermarkets, with 14 chains in this country, and that is the best way to hold down prices. However, she raises an important point and I am sure the CMA will have listened to it.
UK Export Finance plays a vital role in supporting export opportunities, but a company in my constituency is having difficulties landing support to secure a contract based in one of our Trans-Pacific Partnership area countries. Will my right hon. Friend meet me to discuss this and how we can support that business?
I thank my hon. Friend for raising that. I will see whether I can get a meeting with him, but, if not, I will make sure that one of my officials is able to look into this issue specifically for him.
T6. I am sure that you, Mr Speaker, and everyone here will wish the Red Lion in Ealing well under its new management. It even does food for non-drinkers such as me. Can Ministers work with Ofgem to find a sustainable solution to energy bills, and with the Home Office to redefine chefs as a shortage occupation, to stop the Red Lion being one of the record number of pubs going to the wall?
I thank the hon. Lady for raising that issue. As I said earlier in reply to a question about energy support for small businesses, we do know that businesses are facing high energy costs. The Government are currently paying about half of everyone’s energy bills. I talked about the energy bill relief scheme and the energy bills discount scheme. We are doing everything we can to support businesses in the hospitality sector, but if there is something that is specific outside that, I ask her to please write to us and we will see whether there is any further support that can be offered.
T7. According to the website for the Department for Business and Trade, the Department is supposed to“shape our rules to ensure businesses thrive”. Edenvale Turf is a successful small and medium-sized enterprise in my part of Devon and it employs more than 20 people. Older Edenvale workers have grandfather rights as supervisors, but they have been told that they will no longer be eligible to act as turf-cutting supervisors without taking a National Vocational Qualification. Will the Minister meet me to discuss how the Government might prevent scores of older, experienced people from leaving the workforce by getting out of the way and ensuring that businesses thrive?