Economic Growth
Thursday, 15 October 2026
Contributions
Patrick Hurley (Southport) (Lab)Labour
6. What steps his Department is taking to help increase economic growth.
The Secretary of State for Business, Innovation, Science and Trade (Jonathan Reynolds)Labour (Co-op)
As we have heard, this new Department brings together a range of essential policy areas to back industries, technologies and jobs that will power future growth. For me, sustained economic growth can come only through greater private investment and private capital. The business investment figures for the UK are encouraging, with our industrial strategy using the policy tools at its disposal to attract more than £390 billion of private investment commitments since it came into force.
I welcome the GDP figures that have been published this morning, but if we are serious about growth, we need to ramp up our manufacturing capacity and ensure that GDP growth is matched with jobs growth. Will the Secretary of State therefore consider setting an ambition of 1 million new manufacturing jobs in the next decade, putting reindustrialisation at the heart of the Government’s growth strategy?
I warmly welcome my hon. Friend’s question on reindustrialisation, which is an essential part of the Government’s programme. Backing reindustrialisation does not mean that we do not recognise the tremendous contribution of services, and it is not nostalgia—it is about looking at the brilliant innovation that we have in the UK and seeing it scaled up. Doing so requires policy intervention, and I am extremely pleased that the British industrial competitiveness scheme will shortly come online, bringing down our energy and electricity prices for 10,000 British manufacturers and ending the situation we inherited from the Tories where we had the highest energy prices of any industrialised major nation. We do have to look at targets, and I will look at the one my hon. Friend has proposed, but I also think there are other areas we have to include in that to get the holistic impact that we need.
Max Wilkinson (Cheltenham) (LD)Liberal Democrat
The Golden Valley development in west Cheltenham enjoys the support of this Government—I can see the Minister smiling, because I have spoken to him about it a lot—and enjoyed the support of the previous Government, too. It is driven locally by the local council, and supported by businesses like the developer, HBD. It will generate 12,000 jobs and close to £1 billion of investment supporting our cyber and tech industry, and will crucially support the work of GCHQ. However, to really unlock the success of the development, we need to be given designated area status so that the local council can then start to reinvest in the local business community, as it has done so far at the development. Will the Secretary of State have a word with the Chancellor, ahead of the Budget, to see if we can bring about success in that bid?
Everything the hon. Gentleman has said sounds hugely attractive to me. He has clearly already engaged with Government to some degree, but I will follow up on his question and see what we can do to support his local area.
Madam Deputy Speaker (Ms Nusrat Ghani)Conservative
I call the shadow Minister.
Mark Garnier (Wyre Forest) (Con)Conservative
May I start by thanking the Secretary of State for his very measured and intelligent thoughts about the GDP growth rate? I lament that some others in his Government seem almost complacent about the International Monetary Fund’s increasing GDP growth expectations from 1% to just 1.3%, putting us second in the G7. Does that not show a certain lack of reality in the Government? What we should be looking for is GDP growth of more like 2.5%. The G20 is averaging 3.1%, and we are 14th in the G20. Does the Secretary of State recognise that over-regulating, over-taxing and charging too much for energy is holding back our great entrepreneurs and businesses, who could be delivering the GDP growth that this country really needs?
I believe that the figures show a level of resilience in an extraordinarily difficult global climate. In terms of our ambitions, I am pleased that we are turning around the underperformance of the 14 years of Conservative government, but I want more, and I am ambitious and hungry for that. In order to achieve that, the Government have already committed to certain interventions. Going back to my previous point, we inherited the highest industrial electricity prices of any developed nation, but we are bringing those down by a quarter for 10,000 British businesses. I want more progress in that space, and I will be speaking to the Chancellor about further work on that agenda. We are bringing down the costs for business, giving them new markets through the success we have had with our trade deals, and ensuring that the regulatory system supports those objectives. All of that contributes to what I believe is a set of tremendous opportunities for the UK because of the assets that we have. We should be ambitious for the future.
Source: UK Parliament Hansard API. Debate ID: 5417804.