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Business, Energy and Industrial Strategy: Departmental Spending
07 July 2020
Lead MP
Darren Jones
Debate Type
General Debate
Tags
ClimateEnergyBusiness & Trade
Other Contributors: 23
At a Glance
Darren Jones raised concerns about business, energy and industrial strategy: departmental spending 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
The debate focuses on Britain’s recovery from the economic costs of the pandemic while tackling climate change. It calls for good jobs, investment in key sectors to boost British manufacturing and exports, Government partnership with businesses to improve productivity through digitisation and technology transformation, fiscal stimulus targeting people's skills as well as infrastructure, and embedding net zero transition into every spending commitment. The speaker highlights the eightfold increase in day-to-day departmental spending from £2.1 billion in 2019-20 to £15.9 billion in 2020-21.
Mark Tami
Lab
Alyn and Deeside
The speaker emphasises the need for long-term investment in sectors like aerospace, advocating for support similar to that provided by German and French Governments.
Darren Jones
Lab
Bristol North West
Mr. Jones emphasised the need for Parliament to scrutinise the effectiveness of government support measures during the pandemic, highlighting issues such as slow approval processes and inconsistent eligibility requirements for loan schemes. He called for more strategic sector-specific support packages and underlined the importance of embedding net zero transition and worker training in future support policies. Mr. Jones also stressed the urgency of lessons learned from initial support phases to inform future interventions, advocating for a balance between fiscal risks and value for money in borrowing decisions. Furthermore, he highlighted the need for clear overreaching vision on UK skills, digital access, and health and safety regulations that protect workers. He urged the government to set out its industrial strategy framework and how it will be used to shape post-pandemic growth.
Mark Pawsey
Con
Rugby
Businesses face challenges due to social distancing requirements and lack of demand. Helen Taylor Aesthetics in Rugby faces difficulties despite its cleanliness standards. The hospitality sector is hit hard, and the VAT rate reduction might not be enough; a zero-rated VAT for restaurant meals would be beneficial. Support from government schemes like furlough has been crucial but limited. Government needs to provide more training and guidance for small business owners. Manufacturing should also be included in recovery plans.
Caroline Nokes
Con
Romsey and Southampton North
In response to Mark Pawsey's speech, Caroline Nokes emphasises the need to acknowledge women in roles traditionally associated with men such as salesmanship.
Judith Cummins
Lab
Bradford South
Youth unemployment is a critical issue; young workers are disproportionately affected by sector closures during the pandemic. A jobs guarantee for unemployed youth should be implemented to ensure job security and training. The beauty industry, employing over 300,000 people, needs immediate clarity on reopening guidelines. Gender inequality in the beauty sector must be addressed as it is predominantly run by women but often overlooked.
Carolyn Harris
Lab
Neath and Swansea East
Supports Judith Cummins' stance on the importance of the beauty industry and criticises the Prime Minister's dismissive attitude towards this crucial sector, which contributes significantly to economic recovery.
Dwyfor Meirionnydd
The covid-19 pandemic has severely impacted the tourism sector, with around 144,000 people employed in Wales. A Welsh Government survey showed an average drop in revenue of 20%, and 70% of firms have put at least one worker on furlough. Without additional support, there is a risk of an unprecedented unemployment crisis in regions reliant on tourism. The speaker urged for national insurance contributions to be paid by the Government and suggested increasing VAT thresholds or providing targeted stimulus for these sectors. They also highlighted issues specific to heritage railways which require extended furlough schemes until spring 2021 to cope with three winters without income. Post-covid, sustainable tourism can support cultural heritage while addressing climate change, biodiversity loss, pollution, and social inequalities.
Basildon and Billericay
Doyle-Price thanked workers who have continued to work during the pandemic and highlighted the importance of positivity in recovery efforts. She praised a new port facility investment in her constituency as an example of entrepreneurial spirit and advocated for less regulatory burden on businesses, particularly those like hairdressers and the beauty industry, which she argued should be prioritised for reopening.
Nadia Whittome
Lab
Nottingham East
Whittome criticised the Government's inadequate preparation for climate change impacts and questioned their sincerity in adopting interventionist approaches. She pointed out that policies opposed by the Government would have significantly reduced CO2 emissions, highlighting missed targets on carbon budgets and biodiversity. Whittome urged a systemic transformation to net zero and called for public money commitments tied to environmental goals.
Patricia Gibson
SNP
North East Fife
The economy has shrunk since March by 20.4% and unemployment is climbing rapidly, calling for a continuation of the furlough scheme beyond August with reduced employer responsibilities. Urges support for fragile island economies and sectors like aviation, aerospace, and tourism that collectively contribute to employment and GDP. Calls for a green recovery plan focusing on inclusion and wellbeing.
Wera Hobhouse
Lib Dem
Bath
Concerned about the lack of comprehensive plans towards net zero emissions across all sectors, advocating for pilot schemes in hydrogen production to ensure a sustainable future. Emphasises the need for district heating and grid capacity improvements to facilitate the transition to electric vehicles and green energy sources.
David Amess
Con
Southend West
Acknowledges initial good response from the Government but highlights challenges faced by certain sectors such as beauty salons, tattoo parlours, gyms, and aviation. Requests support for Southend Airport facing job cuts due to reduced flight bookings. Enquires about clarity in administering discretionary grants to local businesses.
Caroline Nokes
Con
Romsey and Southampton North
Emphasised the importance of recognising the beauty industry as a significant contributor to GDP, highlighting the struggles faced by entrepreneurs in this sector due to ongoing lockdown restrictions. Raised concerns about trivialisation of the industry and called for BEIS Ministers to take these businesses seriously.
Richard Thomson
SNP
Nairn, Errosherry and Cromerty
Stressed the importance of targeted investment and support in strategic sectors like the North Sea oil and gas industry, urging the UK Government to match Scottish Government's ambition and invest in a green transition. Criticised premature removal of support for businesses.
Alan Brown
SNP
Central Ayrshire
Argued for greater borrowing powers for Scotland and criticised the current financial constraints. Advocated converting business loans to grants, reducing reliance on nuclear energy in favour of renewables, and urged investment in carbon capture projects like Acorn CCS. Emphasised the need for a green recovery strategy aligned with net zero targets.
Greenwich and Woolwich
Commended contributions focusing on support measures introduced by BEIS to aid businesses and individuals during the pandemic, highlighting gaps that still need addressing.
Justin Madders
Lab
Ellesmere Port and Bromborough
Asked whether there should be a sector-specific strategy for aerospace like France and Germany's support offered to Airbus.
Greenwich and Woolwich
Critiqued the Government's lack of progress on climate targets despite setting legally binding goals. Highlighted shortcomings in BEIS’s policy framework and called for a long-term, coordinated approach to decarbonisation. Raised concerns about delays in publishing the energy White Paper, insufficient focus on heat decarbonisation, disparity between low-carbon ambitions and current spending, and the approval of an open-cast mine application.
Kwasi Kwarteng
Con
unknown constituency
Defended the Government's progress on climate change, citing significant achievements such as the reduction in carbon emissions from electricity generation and the plan to phase out coal by 2024. Addressed specific questions raised by Matthew Pennycook regarding the energy White Paper, heat decarbonisation, spending priorities, and the open-cast mine application.
unknown constituency
Asked about the preference for domestic coal mining over imported coal from Siberia and Australia.
Justin Madders
Lab
Ellesmere Port and Bromborough
Called for sector-specific support, citing examples of support provided by France and Germany to their aerospace sectors. Emphasised the need for immediate action to address job losses in the aerospace industry.
Kwasi Kwarteng
Con
Spelthorne
The Government has been proactive in implementing net zero policies, rejecting claims of being laggards. The UK aims to phase out coal by 2025, earlier than Germany's target of 2038. The Prime Minister plans to run 4,000 new zero-carbon buses and upgrade transport infrastructure with a £2 billion package for cycling and walking. A transport decarbonisation plan was published during the covid-19 outbreak. BEIS is considering support for businesses in the green recovery.
Darren Jones
Lab
Bristol North West
Critiques the Government for a lack of coherent and transparent policies, highlighting demands from various sectors including aerospace, beauty industry, and entrepreneurs. Calls on the Chancellor to provide a comprehensive plan for Britain and its workers.
Government Response
Defended the Government's progress on climate change, citing significant achievements such as the reduction in carbon emissions from electricity generation and the plan to phase out coal by 2024. Addressed specific questions raised by Matthew Pennycook regarding the energy White Paper, heat decarbonisation, spending priorities, and the open-cast mine application. We are considering how best to support businesses through BEIS. The green recovery is central to our post-covid strategy, focused on delivering the net zero goal. We will continue to listen and engage with Members of this House.
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Assessment & feedback
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