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Britain’s Industrial Future
15 November 2022
Lead MP
Bill Esterson
Debate Type
General Debate
Tags
EconomyEmploymentClimateEnergyBusiness & Trade
Other Contributors: 36
At a Glance
Bill Esterson raised concerns about britain’s industrial future in the House of Commons. A government minister responded. Other MPs also contributed.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
Opened the debate
We want to see great British industries like steel, car manufacturing and shipbuilding secure our transition to net zero while bringing jobs and skills to communities. Labour is committed to 100,000 extra apprenticeships each year and flexibility in the use of the apprenticeship levy for existing workers training. The Government's promises to level up are not being realised due to spiralling energy costs, cheap imports, inflation, and a lack of investment.
Bill Esterson
Lab
Sefton Central
The current Conservative government is failing British industries with low growth, low investment, and low productivity. The economy has not recovered to pre-pandemic levels and businesses are facing uncertainty due to demand and business prospects.
Jonathan Gullis
Lab
Stoke-on-Trent North
Steel communities need cross-party working to deliver for steelworkers, as Labour will support the calls of colleagues in this debate. The precarious future of Britishvolt risks up to 8,000 jobs and jeopardises gigafactory capacity.
Mark Tami
Lab
Alyn and Deeside
The steel industry faces major energy cost problems which other European countries have recognised but this Government has done nothing about. Long-term investment is needed for the transition to hydrogen, as hoped.
George Freeman
Con
Mid Norfolk
The Minister supports the development of industries for today and tomorrow, emphasising strategic investment in sectors such as life sciences, space technology, quantum computing, agri-tech, and net zero. He criticises Labour's past record on deregulation and deindustrialization but acknowledges the fiscal challenges after the 2007-8 crash under a Labour government. He outlines specific initiatives like the genomics programme in life sciences and plans for fusion energy development.
Grahame Morris
Lab
Easington
Morris questions the Minister about rail manufacturing, specifically mentioning Vivarail in his constituency which is lacking Government support despite its potential to be a beacon for future industry. He also raises concerns over the lack of British steel usage in wind turbines and the impact on Teesside’s steel industry.
Alex Cunningham
Lab
Stockton North
Cunningham supports Morris's intervention and highlights the need to invest in Teesside's steel industry for future industrial jobs, questioning why it is not prioritised by the Government despite its potential significance.
Alan Brown
SNP
Kilmarnock and Loudoun
Critiqued the lack of coherent industrial strategy, welcoming the £4.2 billion order for Type 26 frigates but highlighting issues with Brexit, free movement restrictions impacting labour shortage, need for skilled immigration, automotive industry challenges, electric vehicle charging infrastructure deficit, and UK Government's failure in bus manufacturing compared to Scotland’s success. Emphasised the potential of renewable energy sources like tidal stream turbines and floating offshore wind in Scotland.
John Redwood
Con
Wokingham
Congratulates the Minister on a positive vision for the future. Urges greater efforts in traditional industries, emphasising tax and regulation decisions that can either boost domestic production or result in increased imports. Discusses energy policy, advocating for more local oil and gas extraction as greener and safer than importing. Highlights the importance of carbon accounting to avoid penalizing UK industries while increasing emissions from imported substitutes. Discusses the car industry's transition to electric vehicles and urges continued production of diesel and petrol cars where demand still exists. Advocates for government procurement policies that favour domestic products.
Christina Rees
Lab
Neath
Asks the Minister about honouring a commitment to provide £30 million funding for the global rail centre of excellence in her constituency, which is set to be completed by July 2023.
Ian Lavery
Lab
Blyth and Ashington
Critiques the Government's failure to support Britishvolt, a gigafactory project in his constituency that has planning permission and promises 8,000 jobs but is on the brink of collapse due to lack of financial support. Questions why the company was not mentioned despite Government funding for other automotive companies. Emphasises the potential for high-quality local industrial jobs and urges the Minister to urgently address the situation. Raises concerns over the trend of UK-based automotive manufacturers relocating abroad, potentially resulting in widespread unemployment.
Scunthorpe
Supports the steel industry in her constituency and recognises its importance to UK's net zero targets. Acknowledges government support but criticises the emissions trading scheme and high energy costs. Emphasises the need for a domestic solution for decarbonising steel.
Yasmin Qureshi
Lab
Bolton South and Walkden
Advocates for a 'make, buy and sell in Britain' policy to support local businesses like Booth Industries. Highlights the need for investment in infrastructure such as HS2 and Northern Powerhouse Rail to aid business growth and create well-paid green jobs.
Jonathan Gullis
Con
Stoke-on-Trent South
Praises the ceramics industry in Stoke-on-Trent, mentioning government support like the Kidsgrove town deal. Criticises Labour's plan and highlights the challenges faced by the ceramics sector due to high energy costs and decarbonisation issues.
Pontypridd
Any talk on Britain’s future industrial vision must include a strategy for the regeneration of our former coalfields. My constituency of Pontypridd and Taff Ely is a brilliant patchwork of former coalmining communities that are proud of their heritage's contribution to Britain’s past industrial success. With funding prospects such as the long-awaited shared prosperity fund still in doubt, we must secure an industrial strategy for Britain that is fit for the 21st century.
This Government has spent billions supporting businesses through the pandemic and are a true friend of business. Just in my constituency, Hitachi is investing in battery technology in Sedgefield, and science and space industries in Sedgefield are exemplars in driving opportunities for our region. We have a 10-point plan for a green industrial revolution, and we are ramping up the supply of home-grown energy.
I responded by praising the Government's support for British industry, citing £407 billion investment during the pandemic. I highlighted advances in clean energy innovation, including hydrogen production and offshore wind projects, as well as the National Shipbuilding Strategy and investments in electric vehicle infrastructure. Despite Labour's criticisms, I argued that the current government has successfully bolstered steel production and is on track to meet its climate targets.
Marie Rimmer
Lab
St Helens South and Whiston
Britain must have an industrial future. Our industries are struggling, and some are closing down. The economy is overly dependent on the London property market bubble, and there needs to be diversification with industry at its core. Manufacturing new technologies such as batteries, electric cars, wind energy, and other forms of renewable energy should be prioritised. Procuring ships, steel, and trains from abroad when we have the capability to produce them here is a waste of resources. Investing in UK-made products helps support jobs and the economy locally. There needs to be better collaboration between public and private sectors for industrial growth. The Glass Futures project in St Helens will drive innovation in the glass industry globally, contributing to a greener future. Labour's plan aims to boost our industrial sector sustainably.
The balance between national and local/regional industrial strategies is crucial for economic growth. In Scotland, city and regional growth deals have driven investment opportunities and local growth by empowering areas to take ownership of their priorities within the national framework. The innovation accelerators in Glasgow, Manchester, and the West Midlands aim at fostering innovation. For the Oxford-Milton Keynes-Cambridge growth arc, a cohesive strategy is needed to maximise potential across life sciences in Cambridge and engineering, automotive, and aviation in other regions. Local initiatives like AstraZeneca's growth plans are inhibited by lack of connectivity, housing, and skills development. Strategies must balance national goals with place-based ventures.
Rachel Hopkins
Lab
Luton South and South Bedfordshire
The UK needs a long-term industrial strategy to address short-termism, low productivity, and declining living standards. There is an urgent need for domestic gigafactories to support the automotive industry's transition to electric vehicles by 2030. Currently, the UK has only one operational gigafactory compared to five in Germany and four under construction elsewhere in Europe. Labour plans to part-finance three new gigafactories by 2025 and target eight by 2030, providing certainty for manufacturers and supporting green growth.
Guildford's industrial heritage includes contributions from the wool trade to early car manufacturing. Today, high-tech gaming, space exploration, and 5G development are thriving in Guildford. Surrey Satellite Technology Ltd is working on small satellites for climate change measurement and thermal imaging satellites for real-time emissions data. The Government supports innovative companies like Surrey Satellite Tech and will continue to do so. The local economy also benefits from over 70 gaming studios supporting more than 1,800 jobs, with QB Technology producing modular construction systems in Cranleigh.
Sarah Olney
Lib Dem
Richmond Park
The UK economy is failing due to slow growth, low investment, and declining productivity. The Government's plan involves hiking taxes and cutting public services, which are ineffective in kick-starting the economy. There is a need for an innovation-led economy with a new industrial strategy that provides well-paid jobs, ensures business serves the common good, and sustains strong communities. Workforce shortages and skills gaps hinder economic growth; the Liberal Democrats propose investing in skills and support lifelong opportunities for retraining to match people with industry needs. The UK's trading position is weaker post-Brexit, facing barriers to trade with the EU, while the free trade agreement with Australia contributes minimally to GDP. The Government’s approach to net zero goals lacks ambition compared to potential economic benefits from green technology and industrial strategies.
Peterborough is a city crucial for Britain's industrial future, focusing on manufacturing, engineering, and other industries. There is an addiction in the UK to cheap migrant labour rather than valuing practical and technical skills. Building a university focused on engineering and manufacturing in Peterborough will attract companies and create highly paid, productive jobs. Investment in R&D through tax incentives is crucial for economic growth. Lifelong learning is important for places like Peterborough. Relaxation of planning laws can unlock potential for young people by creating an environment conducive to housing and industrial development.
Kenny MacAskill
SNP
East Lothian
Discussed the significant potential of offshore wind in Scotland, citing former Prime Minister Boris Johnson's description of it as 'the Saudi Arabia of wind.' He emphasised the importance of state control and local jobs. Highlighted issues with contracts going to foreign companies and workers facing redundancy due to immigration rules.
Eleanor Laing
Con
not specified
Announced that time limits for speaking would remain at five minutes as a colleague had withdrawn from speaking.
Andy McDonald
Lab
Middlesbrough and Thornaby East
Addressed the failure of industrial strategy under the Conservative government, focusing on the development of renewable energy in Teesside. Criticised the Tees Valley Combined Authority for mishandling £375 million public money and transferring 90% ownership to a private sector partner without proper scrutiny or procurement process.
Jessica Morden
Lab
Newport East
Ms. Morden highlighted the lack of long-term support for the steel industry from successive Governments, citing the turnover of BEIS Ministers since 2010 as an example of a lack of focus and continuity. She expressed concerns about the current situation at Tata Llanwern where younger workers are anxious due to high energy costs and falling demand in construction and automotive sectors. She urged for investment support for decarbonisation and a UK steel innovation fund, and advocated for ambitious targets on public procurement with UK steel content.
Mr. Whitley discussed the importance of securing the future of British shipbuilding as part of a green industrial revolution. He highlighted Cammell Laird in his constituency, which has been chosen to launch the national shipbuilding strategy due to its reputation for technological innovation. He raised concerns about potential offshoring of the Royal Navy’s fleet solid support ships contract and called for it to be awarded to Team UK to ensure significant investment in British shipyards and training, supporting thousands of jobs across the country.
Peter Grant
SNP
North East Fife
Mr Grant spoke about the historical and current failures of UK Governments towards Scottish communities, particularly regarding industrial projects. He highlighted the abandonment of Methil docks after coal exports and BiFab's closure due to competition from south-east Asian companies. Mr Grant criticised the Rothes pit project that failed despite promises, costing taxpayers half a billion pounds in today’s money. He urged for a change in industrial strategy to support renewable energy and argued against nuclear power investment.
Luke Pollard
Lab Co-op
Plymouth Sutton and Devonport
Mr Pollard called for the Government to redraft procurement rules to favour British companies, creating jobs in Britain. He highlighted issues like passports being made in France post-Brexit and new naval supply ships being built in Spain instead of Britain. Mr Pollard spoke about Plymouth's potential in marine autonomy research and its collaboration with universities and laboratories. He asked the Minister for support in commercialising spin-offs from this industry, which could lead to more high-skill jobs and innovation. Additionally, he urged the Government to consider a fair-share approach to regional funding and expressed concern over Cornwall missing out on levelling-up investment.
Alex Cunningham
Lab
Stockton North
The speaker emphasised the need to secure Teesside's industrial future, highlighting the negative impact of unemployment and loss of jobs due to the Tory Government's decisions. They also expressed hope for upcoming projects such as carbon capture, use and storage, and a freeport site but urged for accountability in terms of job benefits and worker rights. Furthermore, they discussed the critical importance of the chemicals industry to Teesside and the UK economy at large.
Stephen Kinnock
Lab
Aberavon
The speaker criticised the Conservative Government's economic policies, focusing on low productivity growth over the past 12 years. He advocated for an investment-driven growth model to revive manufacturing and secure Britain’s national security and resilience. Emphasising the importance of foundational industries such as steel and green energy, Kinnock presented Labour’s plan for a sustainable growth strategy that includes doubling wind power and quadrupling offshore wind by 2030.
Chi Onwurah
Lab
Newcastle upon Tyne Central and West
The speaker criticises the Conservative government for their handling of UK industries such as steel, car manufacturing, and shipbuilding. She highlights the decline in UK car production under Conservative leadership since 2016, a lack of real-term wage growth for working people, and the absence of credible plans to support industrial jobs, investment, and growth. Onwurah emphasises Labour's commitment to creating new green industries through partnerships between the state and private sector, aiming for an additional £28 billion in green capital investment yearly until 2030 as part of a British wealth fund. She also mentions the creation of eight gigafactories for electric vehicle manufacturing under Labour and support for hydrogen technology in public transport. Additionally, she advocates for R&D investments to achieve 3% GDP by 2030, maintaining UK membership in Horizon, and championing regional growth through collaboration between businesses and universities.
Jonathan Gullis
Lab
Stoke-on-Trent North
The speaker intervenes to highlight job creation efforts in Stoke-on-Trent under a Conservative-led city council. He mentions the creation of over 9,000 jobs with support from the Ceramic Valley enterprise zone and Kidsgrove town deal, as well as Home Office investments leading to additional employment opportunities.
Kevin Hollinrake
Con
Thirsk and Malton
The UK has grown at about the same pace as the United States since 2010, and faster than Germany since 789. Despite challenges from global economic turmoil, manufacturing contributed over £205 billion gross value added to the UK economy in 2021, making it the fourth highest figure in Europe. He acknowledged contributions from various Members and emphasised opportunities such as green hydrogen on Teesside, carbon capture projects, life sciences sector development, space and satellite industry growth, and place-based solutions for economic growth. He highlighted government investments like £4.2 billion for Type 26 frigates and the National Shipbuilding Strategy which unlocks over £4 billion in investment. The automotive industry is being supported with Nissan's £1 billion investment safeguarding jobs and creating new ones. Steel compensation schemes include £800 million commitment towards electricity costs through EII compensation scheme, and efforts to ensure competitiveness against other nations.
Luke Pollard
Lab
Plymouth, Sutton and Devonport
Made points about the need to buy British products and welcomed Government’s £206 million investment in a UK Shipping Office for Reducing Emissions. Noted that opening EU markets to UK companies does not justify closing our markets to others.
Alan Brown
SNP
Kilmarnock and Loudoun
Emphasised the importance of community benefit and local content in procurement processes, suggesting it should be part of quality assessments rather than a price-only approach. Questioned whether Government’s bus procurement strategy and Contract for Difference auctions have adequately addressed these considerations.
Government Response
Freeman outlines a detailed plan supporting current and future industries including life sciences, space technology, quantum computing, agri-tech, and net zero. He criticises Labour's historical approach to deindustrialization while acknowledging the fiscal constraints after the crash of 2007-8 under their leadership. The UK has grown at about the same pace as the United States since 2010, and faster than Germany since 789. Despite challenges from global economic turmoil, manufacturing contributed over £205 billion gross value added to the UK economy in 2021, making it the fourth highest figure in Europe. He acknowledged contributions from various Members and emphasised opportunities such as green hydrogen on Teesside, carbon capture projects, life sciences sector development, space and satellite industry growth, and place-based solutions for economic growth.
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