Contribution
At the end of a long day, let me express my gratitude to the Backbench Business Committee for providing us with this time to debate the supplementary estimates and the priorities of the Department for Business and Trade.
I rise to open this debate and simply make three broad points. This is an important debate because, of all of the supplementary estimates that have been laid before the House this afternoon, the Department for Business and Trade has had by far and away the most significant increase. Day-to-day spending has been increased by some £360 million, which is a rise of almost 18%. Investment spending has risen by £626 million, which is a 41% rise. Those are significant sums, so I pose the following questions to the Ministers. First, are these increases justified? Secondly, is the Department spending its money on the right priorities, given what we have heard from the business community? Thirdly, I want to underline this question about why there is not more significant support for small business, which is suffering what our Committee has found to be pandemic-style pressures but without a pandemic-style support package in place.
Let me start with the significant increases in the Department’s supplementary estimates. Some £375 million has been provisioned extra to support British Steel. That takes the total support that this House has agreed under the Steel Industry (Special Measures) Act 2025 to about £710 million. That is a significant sum. I think it has broad cross-party support. Certainly, the House did not divide when we were recalled for that unusual hearing on a Saturday to agree to the passing of that Act. None the less, there is one significant question that we have to ask this afternoon: where is the steel strategy to go with the extra money that the House is being asked to agree?
When representatives from Tata Steel came before our Committee just a couple of weeks ago, they were very clear that there are now just eight weeks to save the steel industry in this country. Therefore, having passed that Steel Industry (Special Measures) Act, and having been asked to agree this extra money, the House now has to ask the Minister today where that steel strategy is. As we know, a wave of subsidised Chinese steel is about to land on our shores. The United States has put up significant defences. The European Union has put up significant defences. We had significant defences, but they are about to come down in June. Industry is sending a message loudly and clearly to the Government that, unless they act and unless new defences and a steel strategy are put in place, we are looking at the end of the steel industry in this country. Thousands of jobs will go, along with a sovereign capability, which as a country we simply cannot afford to happen.
I would be very grateful if the Minister could explain how, if the House is to agree the spending, we are actually going to make sure that that money is not wasted, because there will be further policy measures in place to ensure that we do not lose our steel industry in the weeks ahead.
That takes me to the Post Office. Post Office provisions for the Horizon scandal and the payouts have now risen to about £1.2 billion. Our Committee has consistently criticised Governments of all stripes for not paying out the money to those victims much faster. The Committee has now agreed a further report on measures, which we think Ministers should take in order to ensure that justice is genuinely delivered to all of the victims of this scandal. That report will be published in a few days’ time. The House is being asked to agree this increase in the provision to £1.2 billion, yet the question we have for Ministers is this: where is the provision that Fujitsu is supposed to be making? After all, the Fujitsu system was at least half the cause of this scandal.
We now think that the total cost of the Horizon scandal, when we add in the legal costs, will be something like £2 billion, yet when we asked the head of Fujitsu what provision he had made for contributing to that bill, the answer was zero. When we followed up with the auditors, they confirmed that the directors had acted within the law because the Government had not yet made any demands on Fujitsu for the money that should come back from that company in order to help fund it. Just to add insult to injury, this is a company that has taken a grand total of £362 million in new contracts over the past year alone. It promised us a moratorium on bidding for new contracts, but that moratorium turned out not to be real and was merely a press stunt.
Why are we not asking for more money from Fujitsu, so that we do not have to put up these provisions of £1.2 billion? I would be grateful if the Minister could answer that question.