As Secretary of State for Business and Trade, my priority is to support UK companies to thrive at home and abroad. During my visit to Israel this month, I held talks with my counterpart, Nir Barkat, on our upgraded FTA. Israel’s economy is booming, its services sector has grown by 45% in the past decade alone and, while in Israel, I met Teva Pharmaceuticals and Trigo, which are involved in pioneering partnerships with the UK. I also saw the Israeli appetite for British expertise in sectors such as fintech and projects such as the £30 billion Tel Aviv metro.
Albert Bartlett is a potato processor in my constituency of North Norfolk and one of its largest employers, with 250 staff. Due to water abstraction permits, this and other farming businesses are simply not going to be able to continue trading or even growing in Norfolk if they are not helped. These significant water licensing issues are affecting all of Norfolk. Has my right hon. Friend spoken to DEFRA colleagues about water supply shortages and how they are impacting on businesses growing food, food security and employment all over the UK?
As set out in the environmental improvement plan, the Government recognise the need to improve the resilience of our water supplies. We are committed to a twin-track approach of investment in new supply infrastructure and action to reduce leaks and improve water efficiency. This includes support for agriculture, such as grants for reservoirs through the farming transformation fund. The Secretary of State for Environment, Food and Rural Affairs takes decisions on this issue, and we will liaise on my hon. Friend’s points and make references to Ofwat, which is the regulator in this case.
The automotive industry is a jewel in the crown of British manufacturing, but to keep that jewel we need to be building batteries for electric vehicles in the UK. So far we have one gigafactory up and running, while Germany already has 10 times our capacity. Alarm bells are ringing across the sector, and we recently had disappointing news with Ford announcing job cuts in Essex. The Faraday Institution estimates that the UK needs 10 battery factories by 2040 to retain our car industry. Does the Secretary of State agree with that assessment? If she does, how and when will she publish a clear plan for how the Government intend to hit that target?
We have a strategy in place to support the automotive industry, with £1.3 billion of innovative projects, including the Faraday factory challenge —[Interruption.] I have a response to the question. The hon. Gentleman will be pleased to know that we have investment in place, so let me continue. With a budget of £544 million, the Driving the Electric Revolution scheme includes nearly £80 million of Government investment through the Innovate UK programme. I suggest that the Opposition Front Benchers flick through my “Critical Minerals Refresh” document, because there is a fantastic page on UK battery supply chains—not just the automotive transformation fund but the Envision AESC announcement, which is worth £1 billion for the north-east electric vehicle hub. Perhaps they will read it before the next Question Time, so that they have a tricker question for us to deal with.
T2. One up-and-coming internet provider in my constituency understands from Building Digital UK that the next roll-out will create a single cross-Devon and Cornwall procurement contract. That will be available only to companies that already have massive turnover, thereby blocking smaller, more agile companies that may be able to deliver contracts faster. Will the Minister review that urgently, if necessary working with others?
I thank my hon. Friend for raising that issue, because it gives me an opportunity to point out that that is also an issue in my constituency, and something I am concerned about. Unfortunately, it is a matter for the Secretary of State for Science, Innovation and Technology, because BDUK is an Executive agency of hers, but if she requires any support from me as Business Secretary, I would be happy to provide it. BDUK is doing a good job in looking at this issue in the round, but we would be happy to help and do whatever we can to support businesses in all our constituencies.
Dr Lisa Cameron (East Kilbride, Strathaven and Lesmahagow) (SNP)
T5. The crypto and digital assets all-party group has been informed, shockingly, that many businesses are struggling to even open a UK bank account. What support can be given to address that issue, and ensure that the UK remains an international hub for fintech innovation?
My hon. Friend raises an interesting point, which is similar to the one raised earlier. I am happy to look at any particular instance where businesses cannot open a bank account. My hon. Friend the Economic Secretary to the Treasury is also interested in this issue, so if my hon. Friend writes to me about any instances I will look into them.
T4. My right hon. Friend will be aware that our creative industries rely on a stable copyright regime to protect thousands of jobs. Can she reassure them that the Government have no plans to weaken our gold-standard intellectual property laws as part of the EU retained law process?
My right hon. Friend raises an important point. The Retained EU Law (Revocation and Reform) Bill allows the UK to take the next step in reasserting the sovereignty of Parliament, and ends the special status of retained EU law in the statute book. Reforms will not come at the expense of our already high standards, and we will maintain our commitments to international obligations, including the withdrawal agreement. We will, of course, ensure that the UK’s position as a global leader in the creative industries will not just remain but be strengthened.
T7. Every time I speak to those running sub-post offices in my constituency, I hear the same message: the various packages that are available and the business models are simply not sufficient for them to run a viable business. What will the Government do about that, or are we just going to wait until it becomes a crisis?
There is no waiting at all and the issue is constantly on our agenda. This week I met the Post Office leadership to look at the sustainability of post offices. We are keen to ensure that the post office network is sustainable, and that sub-postmasters are remunerated fairly. We provide financing to the post office network to ensure it is sustainable, with £2.5 billion over the past 10 years, and that will continue. We are determined to ensure that that network is sustainable and provides those services for our citizens.
T6. This month we are due to have the seventh round of trade talks with our partners in India, working towards a free trade agreement. My right hon. Friend’s predecessor but one promised a free trade deal by Diwali. What assessment has she made about achieving a free trade deal by Diwali this year?
The Secretary of State has been very clear: it is about the deal, not the date. We will not tie our hands by setting an arbitrary deadline. I am pleased to confirm, however, that round eight of the discussions is currently under way. Both nations have committed to and are working together for a mutually ambitious deal. We are working through substantive issues such as goods, market access, services and investment. I appreciate my hon. Friend’s continuing commitment. It is vital to expand on the deal with India, with £35 billion in bilateral trade sustaining half a million jobs in the two countries.
T8. In all the discussions about the Post Office, the Minister did not mention meeting the trade unions. Is he aware of current research by the Communication Workers Union on the opportunities to develop the role of the Post Office and postal workers within the communities of Scotland? Will the Minister engage with the trade unions to discuss the work of protecting post office services across these islands?
I have met CWU representatives. I am always keen to listen to new ideas on how we make the post office network more sustainable, so yes, I am absolutely willing to do that. Perhaps the hon. Gentleman will put them in touch with me.