Rebecca Paul

I agree with the hon. Member on the importance of supporting businesses. We must make sure that we remove obstacles and barriers that hinder growth. I hope that conversation starts today and that we can get to a better place where we support our amazing automotive industry, which delivers so much for this country, including Northern Ireland. Energy costs must come down. The industry cannot manufacture at a competitive cost with energy costs being so high compared with what other countries pay. We must not shoot ourselves in the foot with a net zero obsession. We must make sensible decisions on the energy mix to ensure energy security and value for money so that our manufacturing industry can compete on the global stage. That means investing in nuclear and not making the mistake of thinking that solar and wind are a silver bullet. I urge the Minister to share her views on how she intends to reduce energy costs for manufacturing industries in the short to long term so that they are better able to compete. I recognise that some of this goes across many briefs, so I appreciate that this is not something over which she has full control. Another important challenge is ensuring that we have a skilled workforce. Research by the Institute of the Motor Industry suggests that around 107,000 additional technicians will be needed by 2030. That is an amazing opportunity for this country. The more the industry grows, the more jobs and opportunity there will be, but we must ensure that we have people here with the skills to take up the jobs to ensure the industry’s success. That is why it is so important to support apprenticeships, which are a great way for young people to gain the skills they need while working. A survey from the Society of Motor Manufacturers and Traders in February 2025 found that the UK automotive sector will increase apprenticeship numbers by 16% in 2025, with opportunities spanning manufacturing, supply chain logistics and vehicle maintenance. The most in-demand roles are design and development engineers, EV technicians and specialists in batteries and power electronics. That equates to over 700 new apprenticeships available among UK automakers. I want to take this opportunity to mention East Surrey college in my constituency, which offers full-time and part-time qualifications in vehicle technology, maintenance and electric/hybrid vehicles. I recently visited and was impressed by the expert teachers, the well-equipped workshops with industry standard equipment, and the very talented and engaged students. We must ensure that we provide the right courses so that people with the right skills will be available to fill job opportunities in the industry. East Surrey college is certainly playing its part. I ask the Minister to clarify what the impact of abolishing level 7 apprenticeships will be on the automotive industry and how she plans to mitigate any detriment. Additionally, I urge her to consider how the new Government’s Employment Rights Bill will impact on the automotive industry. In February 2025, a Motor Ombudsman survey found that 58% of businesses reported difficulty in recruiting qualified technicians to meet growing workload, and that those difficulties would be made worse by the Employment Rights Bill, which is causing businesses to re-evaluate their hiring strategies. It is vital that the UK remains competitive and that the industry is not further burdened when it already faces so many challenges. It is clear that the rise in employer national insurance contributions is putting additional pressure on the automotive industry, with a cost of £200 million. The increased cost of doing business in the UK will reduce inward investment, economic growth and ultimately jobs. The Institute of the Motor Industry stated: “These changes are likely to have a significant impact on costs for small businesses that operate in the automotive sector, which is already facing a skills gap of 20,000+ vacancies.” It went on to say that the additional costs will “dampen investment in training and continuous professional development”. If the Government are really committed to boosting job opportunities and growth in the automotive sector, they need to reflect on some of their recent policies. Just saying that growth is a priority does not make it so. They need policies that do not put obstacles in the way. Lastly, I want to raise the challenge of taxation. In the interests of time I will not speak in detail, but the automotive industry has raised concerns about recent announcements on proposals to ban employee car ownership schemes and changes to capital allowances and benefit-in-kind treatment for double-cab pick-up vehicles. The SMMT is concerned that those changes will “undermine the market, hit profitability and viability and have serious consequences for UK tax returns, automotive OEMs and their employees, and sole trader/small business operations.” Will the Minister confirm whether there are any plans to remove or adjust the vehicle excise duty expensive car supplement? That is enough from me for now. I will bring my comments to a close so that anyone else who wishes to contribute has the time to do so. I thank all hon. Members for attending the debate and showing their support for the automotive industry.