Contribution
I thank the Secretary of State for advance sight of his statement.
It is always a good day when we can talk about our wonderful and innovative British businesses, but, sad to say, this strategy has taken the best part of 12 months to appear. That is how long British industry has had to wait for this cut and paste industrial strategy; 158 pages mostly copied and pasted from previous sector strategies and the science and technology framework, which do nothing to alleviate the pain and turmoil that Labour has already inflicted. In those 12 months, Labour has crashed the economy—[Laughter.] Labour Members are laughing, but unemployment has been up in every one of the nine months of this Government, with hiring and investment down. I understand that this document is printed on 40% recycled paper—very much like its content.
Yet there is no respite for businesses from the decisions that have been taken. The Secretary of State talks about restoring stability, and that may well be what was written for him, but he, like me, listens to businesses, so he cannot possibly believe that. The Government have hiked taxes by £40 billion when they promised not to, and gilt rates are higher today than after the mini-Budget; they fiddled the fiscal rules and are now running out of headroom, all while setting up state investment banks in a repeat of the previous Labour Government’s private finance initiative. Higher taxes, higher energy costs and more red tape on employment—the proposals set out in this document are simply insufficient at a time when businesses need far greater measures to defend them from the minefield that Labour has left out.
There are many elements of this strategy that we do welcome. I am pleased that the Government have continued the work the former Chancellor and I undertook on access to capital, and it is good to see an emphasis on trade and international co-operation, particularly with the document’s focus on Japan and Saudi Arabia. I am glad that the Government are implementing the O’Shaughnessy reforms and turning the NHS into a global platform health data research service.
It is encouraging to see the weight given to autonomous cars, although it is curious that there is no mention of the opportunity of driverless trains. I am disappointed that the life sciences and engineering biology receive relatively modest mentions. There is a minor mention of skills reform, but there is no mention of real deregulation to our labour market and a near absence of references to small businesses, which account for the majority of businesses and employment in this country.
The big miss, however, is on energy. We welcomed the Prime Minister’s epiphany this weekend when he announced he would slash green levies on a certain number of businesses. However, the industrial strategy still talks about accelerating to net zero at a time when British business needs the opposite. It is simply mad. Rather than the Business and Trade Secretary—sitting next to the Energy Secretary on the Front Bench—addressing the root causes of high energy costs, this Government seem intent on adding to the web of complexity of taxes, levies and subsidies. There is nothing in the strategy about reopening the North sea—the energy reserves that lie under our own secure feet. It even compounds the problem by imposing further self-harm through a carbon border adjustment mechanism—a tariff by another name—which will cost businesses and consumers in this country dear.
How can anyone outside this postcode running a business believe that Labour intends to cut the regulatory burden when it has set up new quangos at the rate of one every two weeks, including in the Business Secretary’s own Department? How can anyone outside Whitehall looking at the regulations take seriously the commitments in this document, when the Secretary of State’s own Department is guiding through the House 300 pages of trade union-written employment law, which will force employers to cut hiring and jobs?
I will conclude with a number of questions. If the Secretary of State cannot answer today, perhaps he would be so kind as to write with a reply. The small business strategy was promised for the spring, but the summer solstice is now behind us. Can he tell the millions of businesses when it is coming?
There are a number of live situations that the Secretary of State will be aware of, including the bioethanol plan in Saltend Chemicals Park in Hull, Syngenta moving its precision wheat breeding programme to France, and the Government equivocating over supporting the stake in the vital low Earth orbit satellite operator OneWeb. Does the Secretary of State agree that it is actions, not words, that count, and will he impress that on his Treasury colleagues?
Finally, the strategy does talk about reducing the number of regulators, which is wholly welcome, as we need a marked cull in the number of regulators and their scope and size. Will the Secretary of State commit to publishing an annual statement showing the progress his Government are making on that, and will he start today by agreeing not to create any new ones?