📈 Department for Business and Trade

• Economic Growth and Budget Allocation:
  • The Department for Business and Trade’s budget was discussed, authorizing funds for current and capital purposes up to March 2025. The budget includes a significant increase in funding for the Post Office and British Business Bank.
  • The debate focused on the government’s commitment to economic growth, highlighted as the No. 1 priority, with the Department for Business and Trade being scrutinized for its role in achieving this.
• Business Community Feedback:
  • The Business and Trade Committee engaged with businesses, trade unionists, and consumer groups across the UK to understand their priorities, emphasizing the need for growth and support in key areas such as market expansion, trade agreements, and public procurement.
  • Businesses expressed a unified desire for growth, specifically wanting to see more effort in growing markets, resetting relations with the EU, and avoiding US tariffs.
• Workforce and Skills Development:
  • A recurring theme was the challenge businesses face in finding the right workforce, with a call for better skills development. Suggestions included more flexible apprenticeships and stronger university-business relationships to meet industry needs.
  • The importance of skills in supporting economic growth and transitioning to a greener, digital economy was noted, with regional examples like Tamworth highlighted for their efforts in skills development through partnerships.
• Access to Finance and Business Support:
  • Concerns were raised about small businesses’ access to finance, particularly for scaling up. The importance of improving finance accessibility through institutions like the British Business Bank was discussed.
  • There was a call for a comprehensive industrial strategy to support business growth, particularly in sectors like renewable energy and advanced manufacturing, which could also benefit from government investment plans.
• Regulation and Employment Laws:
  • Criticism was directed towards the government’s Employment Rights Bill, with concerns about increased costs and regulatory burdens on businesses. There was debate over the impact of these laws on employment and business operations.
  • The need for regulatory coherence across government departments was emphasized to create a supportive environment for businesses.
• International Trade and Relations:
  • The debate touched on the importance of international trade agreements and the UK’s position in global markets, including the need for ambitious trade deals with countries like Switzerland, the Gulf Cooperation Council, India, and the USA.
  • The potential impact of US tariffs on the UK steel industry was discussed, along with the need for proactive trade policies to protect UK interests.
• Regional Economic Development:
  • Various MPs highlighted regional issues, like the decline of shipbuilding in Portsmouth and the need for an industrial strategy that supports all regions, ensuring growth and job opportunities are evenly distributed.
  • There was a call for a long-term funding plan for organizations like the Post Office to facilitate modernization and growth.
• Future Industrial Strategy:
  • The government’s planned modern industrial strategy was a focal point, expected to support growth sectors and drive productivity. The strategy aims to foster partnerships with businesses and align with multi-year spending reviews.
  • The strategy is expected to be published later in the year, focusing on eight key growth-driving sectors and their potential to spur economic growth.
• Political and Economic Critique:
  • Opposition MPs criticized the government’s approach to business support, suggesting that policies have led to decreased business confidence and slower growth.
  • There was a call for the government to review policies impacting businesses, such as national insurance hikes and business rates, to foster a more supportive economic environment.

The session displayed a moderate level of disagreement primarily centered around economic policies and their impacts on businesses. While there were no vehement confrontations, several points of contention were evident throughout the session. The disagreements can be categorized and detailed as follows:

1. Economic Policies and Their Impact on Businesses:
   • Conservative Members, such as Alison Griffiths, Peter Fortune, and Sir Ashley Fox, criticized the Labour government’s economic policies, particularly the national insurance hike and the Employment Rights Bill. They argued that these measures were detrimental to business growth and confidence. For instance, Alison Griffiths lamented that the budget of the Department for Business and Trade was being slashed by 6%, impacting business support negatively, and Sir Ashley Fox criticized the Employment Rights Bill as increasing costs for businesses, particularly small ones.
   • Conversely, Labour and Liberal Democrat Members defended the policies. Justin Madders, the Parliamentary Under-Secretary of State for Business and Trade, dismissed the Conservative criticisms of the Employment Rights Bill and emphasized the government’s commitment to improving worker protections and supporting economic growth.
2. Access to Finance and Support for SMEs:
   • There was a consensus on the need for better access to finance for SMEs, but disagreement on the effectiveness of government initiatives. Liam Byrne and others highlighted the importance of transforming access to finance through the British Business Bank, yet questioned whether the government’s allocation was sufficient. Justin Madders responded by outlining measures being taken to improve access to finance.
   • John Cooper expressed concerns about the lack of attention to scale-ups compared to start-ups and the insufficient funding relative to other countries like the United States.
3. Industrial Strategy and Skills Development:
   • Some agreement was evident on the need for a comprehensive industrial strategy, but there were divergent views on what it should entail and how it had been handled. Gregor Poynton praised the government’s focus on an industrial strategy, while Chris Law criticized the lack of a dedicated strategy from the SNP Scottish Government and the impact of Brexit on Scotland.
   • Skills development also saw some disagreements, with emphasis on different aspects like apprenticeships and the skills levy. However, there was a general acknowledgement of the need for better skills matching to support businesses.
4. Public Procurement and Trade Relations:
   • Liam Byrne emphasized the business community’s desire for an ambitious reset in trade relations with the EU and criticism of current public procurement practices. John Cooper and others expressed frustration at the government’s perceived lack of ambition in international trade.
   • Justin Madders addressed these issues by mentioning efforts to harmonize regulation and streamline public procurement, indicating a government response to these concerns.

Overall, the disagreements were more policy-focused rather than personal, and while strong criticisms were voiced, they remained within the bounds of parliamentary debate. The session warranted a rating of 3 because while there were clear disagreements on policies and their impacts, there was also some acknowledgment of shared goals such as economic growth and support for businesses, suggesting underlying consensus amidst the debate.