UK Industrial Strategy

Economic growth is the priority for this Government, and our industrial strategy is central to achieving it. Last week I co-hosted a roundtable with the Minister for the Economy in Northern Ireland, Caoimhe Archibald, and business organisations to discuss how we can work together to ensure that the industrial strategy benefits Northern Ireland.

Northern Ireland, like Newcastle-under-Lyme, has a proud industrial heritage. Can the Secretary of State expand on his answer and give us a flavour of the specific discussions he has had with industry, higher education institutions and the Executive on ensuring that Northern Ireland is right alongside Newcastle-under-Lyme at the heart of the Government’s new industrial strategy?

Northern Ireland does indeed have a great industrial heritage. Titanic Studios, for example, had been the paint shed for Harland and Wolff, and now it hosts a lot of film making. Another example is the revival of Harland and Wolff, which, thanks to the takeover by Navantia, will now be building the Navy’s three new fleet solid support ships. Those are two good examples of Northern Ireland’s strength.

Does the Secretary of State agree that the UK industrial strategy is of deep importance to residents of Northern Ireland, as it is to residents of Erewash, where we are currently in the process of redeveloping New Stanton Park to form a new industrial future from the rubble of our famous former ironworks?

I do indeed, and I wish my hon. Friend every success with the New Stanton Park redevelopment. At the roundtable that I co-chaired last week, we had representatives from manufacturing, from cyber, from small businesses such as Alchemy, and from the chambers of commerce for Derry/Londonderry and for Causeway Coast. Those businesses can see the industrial strategy resulting in great opportunities for the people and businesses of Northern Ireland.

A core objective of the Government’s modern industrial strategy is to unleash the full potential of our cities and regions, which is as true in Northern as it is in my constituency of Harlow. Does the Secretary of State agree that Northern Ireland’s four city growth deals, which the Government committed to at the Budget, can play a vital role in this?

I wish Harlow every success as well. The city and growth deals are really important to Northern Ireland’s economic future. The Government are investing a considerable amount of money, together with the Executive, private sector partners and businesses. Among the projects that the city and growth deals will support are those relating to digital innovation, decarbonisation and digital health—yet another example of the great strength of the Northern Ireland economy.

If we are to boost productivity, drive clean, green power and build a resilient economy across the UK, collaboration will be essential. Will the Secretary of State set out what political engagement he has had with business leaders and politicians on working together to deliver the best for Northern Ireland and the United Kingdom?

Last Thursday I visited Foyle port and its innovation park. A new data centre will be built there to tap into the renewable energy that is available alongside it. That is a really good example of the port thinking about its economic future and how we will get new businesses in, drawing on the great strength that Northern Ireland has in renewable energy. I hope we see more such developments.

My constituents in Falkirk saw at first hand the failure of Governments to collaborate in the previous Parliament. What engagement has the Secretary of State had with political leaders and business and sector leaders, such as those in bus manufacturing, to work together to deliver the best for Northern Ireland?

My hon. Friend gives me the chance to talk about the great success of Wrightbus, based in Ballymena, which has won a huge new order from Go-Ahead. It is making the electric and hydrogen buses of the future, and is taking on more staff. I would encourage anyone across the United Kingdom who is thinking of buying buses for their fleet to see what is available at Wrightbus.

Can the Secretary of State further outline what representations he has made to Cabinet colleagues to ensure that the UK industrial strategy pays more than lip service to the position of Northern Ireland’s manufacturing industry, as seen in aerospace, shipbuilding and defence, which has a global reputation for being top-class? How will he advocate for our own Government to invest in those sectors even further and even better?

I have already pointed out examples of that investment. To Harland and Wolff, I would add the order that is going to Thales to make more missiles for Ukraine, which will create an additional 200 jobs. As the answers that I have given demonstrate, Northern Ireland has enormous strengths, and the task of the strategy, and for all of us, is to build on them.

Can the Secretary of State give safeguards for the benefits of the UK industrial strategy, such as economic growth, innovation, and research and development, against the adverse effects of the Windsor framework?

The Windsor framework is a necessity arising from our departure from the European Union, because we have got two trading entities with different rules and an open border, and some arrangement had to be put in place to manage that. But the goods are continuing to flow both ways across the Irish sea. I point out to the hon. Gentleman that the growth rate in Northern Ireland is higher than in the UK as a whole. Northern Ireland also has the lowest unemployment in the UK.

With regard to international trade, as mentioned by the hon. Member for North Down (Alex Easton), what assessment has made been made of the UK industrial strategy and the impact of US tariffs that may come on goods manufactured in Northern Ireland?

We will discover more later today about the decision that we are told the US Administration are about to make. Tariffs are not good for any country, and they are not good for the global trading system, but we will have to see what the consequences are. Any tariffs that the United States of America puts on the United Kingdom will be felt equally in Northern Ireland and in Great Britain. We will not hesitate to take the action that is necessary to respond, but we are not going to make snap decisions, because we are also trying to negotiate an economic agreement with the United States of America.

An industrial strategy would be very welcome, but is not the reality that any assistance under an industrial strategy in Northern Ireland would be subject to EU state aid rules, that any raw materials for industry in Northern Ireland that come from GB would have to pass through the international EU customs border, and that many goods would have to be made to EU, not UK, standards? Unless or until we get rid of those hindrances, how do we liberate such a strategy?

As I pointed out in my previous answer, the Windsor framework, which was negotiated by the previous Government and was a huge improvement on the Northern Ireland protocol, is the only available means of managing the challenge of having two systems, with two different sets of rules, and an open border. Not all Members of the House may want to recognise that fact, but it is a fact, and we have to deal with it.

The Secretary State will be aware that over the past couple of decades investment from US companies in Northern Ireland has been important for economic growth and for cementing the peace process. As we all await the announcement from the President of the United States later today, will the Secretary of State give some thought to supporting businesses that could be detrimentally affected by any potential tariffs in Northern Ireland?

We are going to have to wait and see what the US Administration decide. As I have already indicated, the Government will take the steps that are necessary in the national interest, but we are seeking to negotiate an agreement, and that work is continuing, notwithstanding what is announced later today.

I call the shadow Secretary of State.

As the House has heard, we are expecting Washington later today to announce the biggest changes to its tariff regime in a generation. That may cause huge disruption to industry and business throughout the United Kingdom, and that disruption may be particularly felt in Northern Ireland. What guidance have the Government provided to businesses in Northern Ireland to help them prepare for different scenarios?

We do not yet know, apart from the tariffs on cars and on steel and aluminium, what else the US Administration may announce later today. But the effects of any tariffs, if imposed, will be felt equally in Northern Ireland and across the rest of the United Kingdom. We will have to deal with the consequences when we know what the US Administration have decided.

I am afraid that reveals that the Government have provided businesses with no information to help them prepare for the different scenarios that may emerge. The Secretary of State will be aware that in some scenarios Northern Ireland, because of its unique arrangements, may be particularly disadvantaged in a trade war. Will he confirm to the House that, if that happens, the Government will be prepared to use article 16 of the Windsor framework to take unilateral safeguarding measures to protect businesses in GB and Northern Ireland?

In respect of tariffs that affect the whole of the United Kingdom, as I have already said to the hon. Gentleman, we will have to see what they are and take the appropriate action in response. If the EU retaliates, then there will be an issue in respect of Northern Ireland, as he will be well aware. However, there is the tariff reimbursement scheme, of which he will also be aware, and that means that, provided those businesses can demonstrate that the goods they have bought from the United States of America are not leaving the United Kingdom, they can get that tariff reimbursed.