← LEADERSHIP TERMINAL

UK PARLIAMENT · SITTING

Seema Malhotra

MP for Feltham and Heston · Labour (Co-op) · United Kingdom

IN THEIR OWN WORDS

Public sector productivity is improving, with the latest Office for National Statistics figures showing output continuing to grow faster than inputs, and Departments being challenged to improve efficiency and modernise outdated processes.

PUBLIC SECTOR PRODUCTIVITY · 2026-09-08 · READ IN HANSARD

I was proud to support the Feltham Convening Partnership’s young leaders summer programme last month. What struck me was their ambition for themselves and their community, as well as their call for more work experience opportunities.

DIRECTION OF GOVERNMENT · 2026-09-01 · READ IN HANSARD

We will be working to commence the socioeconomic duty on public bodies in section 1 of the Equality Act to require public authorities to put addressing socioeconomic disadvantage at the heart of their strategic decision making. There will be more on that to follow. Let me again thank my hon.

REGIONAL ACCENTS AND SOCIAL MOBILITY · 2026-07-15 · READ IN HANSARD

For generations, the message to those who want to enter public life or elite professions has been that if they want to get on, they must sound like everybody else. When Margaret Thatcher became leader of her party in the 1970s, she famously underwent intensive elocution lessons with a tutor from the National Theatre.

REGIONAL ACCENTS AND SOCIAL MOBILITY · 2026-07-15 · READ IN HANSARD

Whether a young person chooses a degree or a trade, their journey must be determined by merit and their potential—never by whether they have to change their voice or pretend to be someone else to fit in.

REGIONAL ACCENTS AND SOCIAL MOBILITY · 2026-07-15 · READ IN HANSARD

Interestingly, studies also regularly show that regional accents such as Welsh or Yorkshire are rated by the public as trustworthy, warm and honest. Yet when those same studies measure perceived intelligence or employability, standard southern English and received pronunciation invariably top the metrics.

REGIONAL ACCENTS AND SOCIAL MOBILITY · 2026-07-15 · READ IN HANSARD

The complete record

Every one of 5,023 lines we hold for Seema Malhotra, in date order, each linked to its source. Free to read, in full, without an account. Page 35 of 101.

  1. Labour will review all aspects of the postal sector to ensure that the USO is continued and strengthened, including the delivery of parcels. This includes assessing the options for improving Royal Mail, taking into account the proposals from the CWU. Let us be in no doubt that we all want to see a successful, long-term future for Royal Mail, in which the Government have to play their part, too. However, decisions by management are rightly under scrutiny, with questions remaining over the decision of International Distributions Services to give out over £400 million in dividends and £167 million in share buybacks last year, despite knowing about the post-pandemic mail traffic forecasts. The company is now seeing a financial loss in the first half of this financial year. The Secretary of State has yet to respond to the letter from my hon.

    ROYAL MAIL AND THE UNIVERSAL SERVICE OBLIGATION · 2023-01-12 · READ IN HANSARD

  2. We all recognise the challenges that Royal Mail faces—whether it is the rising cost of doing business, much of which is due to the Tories’ mismanagement of the economy and 13 years of failure, or growing competition in the parcel business—but it is wrong to see it as a service that is not changing or modernising, as some people have sought to characterise it. It has changed, and it is changing. The Labour party will work with Royal Mail and the unions to expand the role of postal workers, adding social value to our communities and introducing innovative products and services to support the levelling up and growth of our local and regional economies. The Labour party stands against the break-up of Royal Mail and will oppose any attempt to turn this vital service into a gig economy employer through a takeover.

    ROYAL MAIL AND THE UNIVERSAL SERVICE OBLIGATION · 2023-01-12 · READ IN HANSARD

  3. As we have heard, Royal Mail has asked the Department for Business, Energy and Industrial Strategy to cut Saturday letter deliveries from the USO. We are extremely concerned about that and about the potential consequences, including for example for businesses with magazine subscriptions where Saturday deliveries form part of the delivery model. Any industrial challenge needs to be resolved in a way that is pro-business and pro-worker, which is why we will support Royal Mail workers in their efforts to secure the long-term health and future of the service, by supporting mutually agreed changes to modernise the service.

    ROYAL MAIL AND THE UNIVERSAL SERVICE OBLIGATION · 2023-01-12 · READ IN HANSARD

  4. It also demonstrated the value of postal workers connecting communities and delivering vital services to those in need. That is why Labour is committed to the universal service obligation as the company’s central mission. The next Labour Government will want to ensure that the USO is secure for the future and continues to be provided by Royal Mail in a way that is affordable and accessible to all users, and financially sustainable for the long term. We will also strongly oppose any attempts, whether by the Conservatives in the future or by the leadership of Royal Mail Group, to weaken or abandon the USO. I am glad to have seen the Minister’s response to a recent written parliamentary question, as well as the debate earlier this week. I will be listening closely to what he says today.

    ROYAL MAIL AND THE UNIVERSAL SERVICE OBLIGATION · 2023-01-12 · READ IN HANSARD

  5. Almost all of us still rely on letters, and as my hon. Friend the Member for Reading East (Matt Rodda) has said so clearly, the service is much more important for those who are vulnerable. The quality of service also matters. Citizens Advice has been calling out the quality of service in recent years—an issue over which the management of Royal Mail need to be held to account. Royal Mail has failed to hit a single quarterly target for over two years. Letter delays can result in consumer harm, such as missing hospital appointments, fines for missing court dates and weakened credit scores following missed bills. The pandemic highlighted the importance of having a robust, well-functioning and affordable delivery service that can reach all parts of the country.

    ROYAL MAIL AND THE UNIVERSAL SERVICE OBLIGATION · 2023-01-12 · READ IN HANSARD

  6. Notwithstanding the commercial challenges that Royal Mail faces, there is a problem with the management that has come through very clearly in this debate. Complaints are not being effectively dealt with and customers are paying more for less. I thank the postal workers in my constituency of Feltham and Heston and the CWU, not just in my constituency but around the country—they are represented in the Public Gallery today. Royal Mail is a prized and loved institution. Royal Mail staff are essential workers. Whether it was delivering test and trace kits or being a point of contact for those isolating, they helped to get us through the pandemic. It is Royal Mail’s dedicated workers who deliver the universal service obligation, delivering to every address in the UK, six days a week, at a uniform affordable price.

    ROYAL MAIL AND THE UNIVERSAL SERVICE OBLIGATION · 2023-01-12 · READ IN HANSARD

  7. It is a pleasure to serve under your chairship, Ms Ali. I start by congratulating my hon. Friend the Member for Jarrow (Kate Osborne) on securing this important and timely debate. I cannot think of many Members who have had the experience of Royal Mail that she has had. I thank her for her 25 years of service and her relentless advocacy for those who rely on the USO and wider services. Posties are indeed a lifeline. It is clear from the contributions across the House today that there is a great strength of feeling in all parts of the Chamber. There is a strength of feeling on the importance of the management and delivery from Royal Mail of our USO for communities across our country, and on the need to safeguard the USO, which so many across the country rely on.

    ROYAL MAIL AND THE UNIVERSAL SERVICE OBLIGATION · 2023-01-12 · READ IN HANSARD

  8. My hon. Friend is making an outstanding opening speech. My constituent told me last week about his relative who has multiple myeloma and had a stem cell transplant last year. She had a bad viral infection for three weeks, which is a serious issue after chemotherapy and a transplant. My constituent was asked by her consultant to take his relative to another hospital, because no beds were available at the hospital where she was being treated. She was treated in the corridor and waited 24 hours for a bed. Does my hon. Friend agree with my constituent that that hospital and its staff were not to blame and that, with underfunding and no strategy for the NHS now or in the future, the fault lies squarely with this Government?

    NHS: LONG-TERM STRATEGY · 2023-01-11 · READ IN HANSARD

  9. Will the Minister clarify whether the strategy he is referring to will be the updated school sport and activity action plan, which has been an area of concern, and whether there will be time for consultation before that plan is published so that voices can be heard as part of its development?

    SPORT IN SCHOOLS AND COMMUNITIES · 2023-01-10 · READ IN HANSARD

  10. The first time that I went to an athletics meeting, I did not realise that people were going to play sport and have a competition—I went to the first athletics meeting thinking that it would be a meeting and that we would all be sitting around. As it was, because nobody else had really turned up, I had to take part in everything for Hounslow. That was probably the only time in my life when I would have ever won—I did win—medals and trophies for taking part in javelin and shot put. It was one of those things where you do not know what you do not know until you have the confidence to take part and somebody walks through that journey with you.

    SPORT IN SCHOOLS AND COMMUNITIES · 2023-01-10 · READ IN HANSARD

  11. I thank organisations from my constituency, where there are a lot of grassroots sports and football clubs, including Bedfont Sports, the Eagles, CB Hounslow United and Hanworth Villa FC. I also thank our PE teachers. We do not always talk about the interface of confidence in physical activity in school building confidence to take part in physical activity outside school. Indeed, it can also work the other way around. My own story is that when I was growing up I had friends at school involved in the local athletics club. Athletics and sport were not a big thing in my family; I suspect that is common in families who have not had a tradition of sport. However, I started going to Feltham athletics club, the same place where Mo Farah trained—I was there a number of years before him.

    SPORT IN SCHOOLS AND COMMUNITIES · 2023-01-10 · READ IN HANSARD

  12. It is a great pleasure to speak in the debate and to follow the hon. Member for Worcester (Mr Walker) and other colleagues. I think there will be a fair amount of consensus in this debate. Sport in our communities and in schools has had a renewed focus through the pandemic and after it, with sport and physical activity being so important for mental and physical wellbeing, which is critical to all of us and to our communities. I emphasise the point made in an intervention about the importance of health and of the Department of Health and Social Care team being actively and prominently part of the debate and strategy. It is disappointing that a Minister from the DHSC is not in the Chamber.

    SPORT IN SCHOOLS AND COMMUNITIES · 2023-01-10 · READ IN HANSARD

  13. The second is to work together on planning for the future, consulting on the updated school sport and activity action plan, and a central role for a national network, like the Schools Active Movement, to play its part within an updated school sports strategy.

    SPORT IN SCHOOLS AND COMMUNITIES · 2023-01-10 · READ IN HANSARD

  14. They could not, with the cost of living crisis, cope with the lack of certainty and left their role to become a postman—a really sad result. On the impact that can be achieved locally, Sport Impact supports schools to take a strategic approach. Its training has built teachers’ confidence to teach sport. From almost 50% of teachers lacking the confidence to teach PE, more than 50% are now highly confident and none are lacking confidence. Finally, to mention the asks that have been shared with me, one is the urgent need to maintain present infrastructure to protect the value of games organisers and the national network, and with confidence about funding.

    SPORT IN SCHOOLS AND COMMUNITIES · 2023-01-10 · READ IN HANSARD

  15. That is helpful and important, but the lack of an overall coherent strategy is having a significant impact on effectiveness in achieving the best outcomes for young people. Local organisations have to spend too much time and resource fighting to access funding, and ensuring it is spent strategically and effectively. Schools, and particularly those without an active school sports partnership, are struggling to know what, strategically, to spend the funding on. The lack of a coherent strategy on infrastructure and the year-to-year funding announcement is seriously affecting the ability to attract trained staff and to plan ahead. I heard one example of somebody who was trained and playing a really important part in local school sports.

    SPORT IN SCHOOLS AND COMMUNITIES · 2023-01-10 · READ IN HANSARD

  16. Member for the meeting that we had today with Alan Watkinson, who was a co-founder of the Schools Active Movement and who also runs Sport Impact in Hounslow. There are a number of serious challenges that affect young people for which physical activity is part of the solution: childhood obesity, deteriorating mental health, deteriorating physical literacy—not a term we use enough—and the growing gap in children’s physical and mental wellbeing between affluent and deprived areas. The Schools Active Movement, through school sports partnerships and their equivalents, has had huge success in supporting schools, but it faces significant challenges. It talks about the sector having different pots of funding.

    SPORT IN SCHOOLS AND COMMUNITIES · 2023-01-10 · READ IN HANSARD

  17. I thank my hon. Friend for that point. She has reminded me of the story of a young boy who was pretty much suicidal after the impact that the lockdown had had on his mental health, and of the support and camaraderie that his local football club gave him, including the coaches, who became in loco parentis. I also acknowledge the point made by the hon. Member for Worcester about the link between physical activity and wellbeing and educational attainment. That area really needs to be highlighted as well as the purpose for having a sports strategy at all. I want to talk about the Schools Active Movement and its role in effectively utilising PE and sport to enhance the lives and development of young people. I thank the hon.

    SPORT IN SCHOOLS AND COMMUNITIES · 2023-01-10 · READ IN HANSARD

  18. However, family businesses are absolutely up against it. They have raised concerns about business rates, supply chain costs, access to schools, and the need for a stable tax environment. A good Government should create an environment for business success. It is a concern to me that this Government and previous Conservative Governments have failed to do that. We have a supply chain crisis, petrol crisis, heavy goods vehicles crisis, CO 2 crisis, energy crisis, cost of living crisis, cost of doing business crisis, and an industrial disputes crisis.

    FAMILY BUSINESSES: CONTRIBUTION TO LOCAL COMMUNITIES · 2022-12-20 · READ IN HANSARD

  19. When we think about support for family businesses, those are important things to emphasise and encourage; we should think about how we actively nurture the family business leaders of tomorrow. We have heard many examples of household names, but I might add Cadbury. My hon. Friend the Member for Brentford and Isleworth (Ruth Cadbury) is a member of the Cadbury family. We can see the social contribution made by family businesses that recognise the needs of their workforce and the community around them. Although family businesses had a higher decrease in turnover than other businesses during the pandemic, they were less likely to see a decrease in staff. That speaks to the story and the contribution of family businesses, the loyalty of staff to the organisation and its culture, and the loyalty of the owners to their staff.

    FAMILY BUSINESSES: CONTRIBUTION TO LOCAL COMMUNITIES · 2022-12-20 · READ IN HANSARD

  20. Member for Torbay (Kevin Foster) and others mentioned the 13.9 million people in such businesses, and the proportion of private sector employment that comes from family business employers. We know from the research and the debate that there are many ways that family businesses contribute to their local community. They often have a long-term relationship with a place. It can be where the owners’ kids go to school, as was the case in my family. There can be loyalty, local staff, and the creation of local services. The hon. Member for Strangford (Jim Shannon) was absolutely right to talk about local services—the lawyers, banks and insurance companies. All of those make a difference to a community’s fabric.

    FAMILY BUSINESSES: CONTRIBUTION TO LOCAL COMMUNITIES · 2022-12-20 · READ IN HANSARD

  21. We have heard in the debate what defines a family business, and about some of the more technical points around voting rights, control and ownership, and levels of involvement in administration. We have also heard how family business issues reflect the issues that other businesses face, such as the rising cost of doing business, energy costs and so on. I want to emphasise the point that was made about the part that women play in family businesses. It is a subtle point, but although we have heard about one-man bands, there are quite a few one-woman bands. It is important to make sure that we use language that reflects the work of women such as Anita Roddick, who set up the Body Shop, and so many other women entrepreneurs who run a family business. The hon.

    FAMILY BUSINESSES: CONTRIBUTION TO LOCAL COMMUNITIES · 2022-12-20 · READ IN HANSARD

  22. I, too, grew up in a family business, above our small shop in Osterley, so I know about the contribution that family businesses make, and about the attitude that my parents had. They saw what they did as almost a public service. We sold school uniforms, jewellery imported from India, clothes—all sorts of useful items that people never knew they needed until they popped into Ramson of Osterley. I find it fascinating that people who went to the shop in the late ’70s and ’80s still remember it. They remember what my parents did and even remember me aged five, six and seven learning how to serve customers and the fun that we had with that. Research from the Institute for Family Business has revealed that family businesses are key drivers of regional growth and prosperity, spreading economic prosperity to all corners of the UK.

    FAMILY BUSINESSES: CONTRIBUTION TO LOCAL COMMUNITIES · 2022-12-20 · READ IN HANSARD

  23. The business is still run by the family—indeed, multiple generations of the family. That family started with nothing in this country, but they now contribute so much to our prosperity. I again pay tribute to the Institute for Family Business for the way that it conducted, ran and brought to Westminster, Family Business Week, which was supported by NatWest Group. I was delighted to speak at the reception in November, having made a virtual contribution to Family Business Week last year. Family Business Week celebrates local family businesses, encouraging them through social media. The family business in my area that I popped into at the weekend was Priyas Tandoori in Cranford, a very homely place to get a takeaway or to eat in with family members.

    FAMILY BUSINESSES: CONTRIBUTION TO LOCAL COMMUNITIES · 2022-12-20 · READ IN HANSARD

  24. I will also mention a couple of businesses in my constituency. Flowers by Eva’s is one. It has been in Hanworth since 1955, and has given the joy of great flowers and bouquets for weddings, as well as providing flowers for funerals and other special occasions. It gives that extra personal touch, because when we go to such businesses, we get to know the people in them. I will also highlight businesses run by members from immigrant communities, for whom it has sometimes been hard to find a conventional way into employment. They have started businesses that have allowed them to make a big contribution to the community, and that have grown. One example is the Sanger family, which owns Heston Hyde hotel, Bentley hotel, Washington hotel and now the Courthouse hotel.

    FAMILY BUSINESSES: CONTRIBUTION TO LOCAL COMMUNITIES · 2022-12-20 · READ IN HANSARD

  25. The hon. Member for Carlisle was also right to highlight hospitality businesses, so many of which are family-run and family-owned, and so many of which play that very important role of being a home from home—a local place that people can pop out to in order to be with friends and neighbours, and indeed their own family. Family businesses give that “home from home” feeling that really touches our communities in special ways. The right hon. Member for Aldridge-Brownhills (Wendy Morton) mentioned showmen, and I was going to mention showmen from my constituency. Feltham has a long tradition of showmen living in the area, and I have continued to support their place in the community and their role in a unique industry that gives a tremendous amount of pleasure, and even joy, to families across the country.

    FAMILY BUSINESSES: CONTRIBUTION TO LOCAL COMMUNITIES · 2022-12-20 · READ IN HANSARD

  26. It is a pleasure to serve under your chairship, Mr Robertson. I start by congratulating the hon. Member for Carlisle (John Stevenson) on securing this debate, which is a really excellent one to have on the last day before we break for Christmas. It is clear from the contributions that everybody has a story to tell about family businesses—either their own family business, or those in their constituency. Very strong feelings have come through about the contribution that family businesses make to our local economies and our national economy. So many points were raised, which I will draw on, but I also support and thank, as other hon. Members have, the Institute for Family Business, which has made such an important contribution to raising awareness of family businesses over the last couple of years, particularly through Family Business Week.

    FAMILY BUSINESSES: CONTRIBUTION TO LOCAL COMMUNITIES · 2022-12-20 · READ IN HANSARD

  27. They should be reformed and changed, to level the playing field between bricks and mortar and online businesses. This has been a fantastic debate. Labour has a long-term plan for growth, which would bring stability for businesses across the country and give our incredible family businesses the support that they need to grow and prosper. I look forward to the Minster’s response to this important debate, and to his saying how we can work together, across this House, to support our family businesses and the employment and prosperity that they bring.

    FAMILY BUSINESSES: CONTRIBUTION TO LOCAL COMMUNITIES · 2022-12-20 · READ IN HANSARD

  28. We need to address the inheritance challenges for family businesses, which have been mentioned—for instance, there should be clarity around rules, and support when there might be difficulties with succession planning. We should also have a proper industrial strategy, backed by ambitious investment, that makes decisions for the long term. It should be secured by an industrial strategy council that has a statutory footing. Family businesses are not just our local small businesses; they are also key in manufacturing and other big sectors across the country. We need a proper plan for skills, which is an area where our growth and skills levy will bring the flexibility that is needed. We also need a plan for reform of business rates, because so many businesses are concerned about the unfairness of business rates.

    FAMILY BUSINESSES: CONTRIBUTION TO LOCAL COMMUNITIES · 2022-12-20 · READ IN HANSARD

  29. That has cost businesses a year, and the possibility of moving forward in digital. What needs to happen if we are to support family businesses at this time? First, we need to deliver macroeconomic stability, and respect our institutions, such as the Office for Budget Responsibility and the Bank of England. A key reason for the failure and devastating impact of the mini-Budget was the sidelining of our economic institutions. We need to make sure that we work with businesses to tackle the crises facing our country. Small Business Saturday has been mentioned; we all celebrated its 10th year this year, and I celebrate it every year. We need to make importing and exporting easier; Brexit is not working as the Government promised.

    FAMILY BUSINESSES: CONTRIBUTION TO LOCAL COMMUNITIES · 2022-12-20 · READ IN HANSARD

  30. The hon. Member makes a powerful point. Indeed, what he says comes through in the data about how family businesses got through the pandemic. However, a recent survey has suggested that 80% of members of the Institute for Family Business were less confident going into this winter than they were last year, during the pandemic. Rising inflation is a threat, and there are concerns about the cost of living and consumer confidence. Clearly much, more support for businesses is needed. I am concerned that last week the Government slipped out in a written ministerial statement that they will be closing the “Help to Grow: Digital” programme, which was to give businesses support in adopting new technologies. They had all the warnings about the design and the roll-out, but they failed to listen to those important voices.

    FAMILY BUSINESSES: CONTRIBUTION TO LOCAL COMMUNITIES · 2022-12-20 · READ IN HANSARD

  31. I thank the hon. Member for securing the debate. I have also had representations, and heard my constituents’ concerns, about costs and the transition to green vehicles, but there is another side to this. I am sure he will agree that this is also about air quality, which we need to tackle in London. Has he read that the Mayor has decided to introduce two new temporary exemptions, from January 2023 to October 2027? Those grace periods will apply for those on disabled benefits and with wheelchair-accessible vehicles. Any way we move forward must be inclusive. There are still questions to be answered, including from my constituents.

    EXPANSION OF THE ULTRA LOW EMISSION ZONE · 2022-12-20 · READ IN HANSARD

  32. Will the Minister clarify whether the MRA will make any difference for the five sectors to which it applies or in effect continues the temporary arrangements we currently have for those sectors with the Swiss?

    DRAFT CONFORMITY ASSESSMENT (MUTUAL RECOGNITION AGREEMENTS) (AMENDMENT) REGULATIONS 2022 · 2022-12-13 · READ IN HANSARD

  33. I understand that the MRA may make temporary arrangements permanent but I am trying to understand whether anything is different under it for the five sectors to which it applies. Will anything affect businesses that are currently trading under the temporary arrangements for products that they export to Switzerland? Or does the MRA in effect continue the current temporary arrangements, even it makes them permanent?

    DRAFT CONFORMITY ASSESSMENT (MUTUAL RECOGNITION AGREEMENTS) (AMENDMENT) REGULATIONS 2022 · 2022-12-13 · READ IN HANSARD

  34. It is important to be clear about where there is simply continuity rather than giving the impression of something new happening. To clarify, the SI means continuity of importing into the UK, without further checks, for goods made in Switzerland and tested for conformity against UK standards by a conformity assessment body in Switzerland. It is simply a continuity of arrangements under the Swiss temporary measures for the five sectors to which it applies.

    DRAFT CONFORMITY ASSESSMENT (MUTUAL RECOGNITION AGREEMENTS) (AMENDMENT) REGULATIONS 2022 · 2022-12-13 · READ IN HANSARD

  35. Are they concentrated in any particular area, or are they broadly spread across the country? If there is an impact on trade with Switzerland from some challenges of exporting and challenges to competitiveness in those eight sectors, which would see increased process to go through, that could have a disproportionate impact if there is a cluster or an area that is more affected than others. That would be important for communication purposes, so that businesses have the best possible information in order to make commercial decisions about what they need to change in terms of processes. I raised this point with the Minister last week, and have not yet had a clear answer—perhaps the answer will be “shortly”. Has there been any further progress on the product safety review that has been promised by Ministers since spring this year?

    DRAFT CONFORMITY ASSESSMENT (MUTUAL RECOGNITION AGREEMENTS) (AMENDMENT) REGULATIONS 2022 · 2022-12-13 · READ IN HANSARD

  36. For example, a business based in, say, Thirsk and Malton producing goods for export to Switzerland would have three arrangements under which it might deal with those exports: one under the FTA; one under the UK MRA; and one under these third-party conformity assessments for the eight sectors not included, for which there need to be a separate check. If that business decided to produce its goods in Northern Ireland, they could all be exported to Switzerland under the EU-Swiss MRA. I would just be grateful if the Minister could just clarify that that is effectively what this arrangement means. Will the Minister also clarify where businesses exporting to Switzerland in the eight sectors that are not covered by the MRA or the FTA are geographically located in the UK?

    DRAFT CONFORMITY ASSESSMENT (MUTUAL RECOGNITION AGREEMENTS) (AMENDMENT) REGULATIONS 2022 · 2022-12-13 · READ IN HANSARD

  37. There may be some very good reasons for that, and it would be helpful for us to understand what approaches are being made to the Department in relation to either conformity or divergence from standards that are recognised under some of our mutual agreements. I would be grateful if he could say how many representations he has had from businesses requesting divergence, as referenced in paragraph 6.3 of the explanatory memorandum to the MRA. I have a couple of final points. The explanatory notes and the memorandum suggest—I think the Minister clarified this—that this process effectively only applies to Great Britain, because under the terms of the Northern Ireland protocol the EU-Swiss MRA, which covers all sectors, will continue to apply.

    DRAFT CONFORMITY ASSESSMENT (MUTUAL RECOGNITION AGREEMENTS) (AMENDMENT) REGULATIONS 2022 · 2022-12-13 · READ IN HANSARD

  38. The Government stated in paragraph 6.3 of the explanatory memorandum that this new arrangement “provides for regulatory autonomy”. I think that we all understand “regulatory autonomy” and what the Minister has described as some of the benefits for UK businesses arising from the potential for “regulatory autonomy” and divergence. I just want to be clear on something. First, coming back to a question that I have already asked the Minister, for the five sectors covered under the MRA, is the UK committing to not diverging from current standards, and if there is divergence, will that affect their inclusion under the MRA? Secondly, could the Minister say how many representations he has had from businesses that trade with Switzerland that have requested and sought that we diverge in our standards?

    DRAFT CONFORMITY ASSESSMENT (MUTUAL RECOGNITION AGREEMENTS) (AMENDMENT) REGULATIONS 2022 · 2022-12-13 · READ IN HANSARD

  39. However, will the Minister clarify—I could not find the figures—how many millions of bilateral trade are covered collectively by the eight sectors remaining outside of both the MRA and the FTA? If the Minister does not have those figures to hand, I am sure that he will be able to come back to me in writing. Reflecting on paragraph 5.2 in the explanatory memorandum, what about goods with certificates issued before 31 December 2022 that have not yet been exported to Switzerland? There may be goods sitting in warehouses now, ready to go, but they may not go before 1 January; then they may not be able to go unless they are certified in a different way. How long could the conformity assessment process take if it needs to go through a new Swiss body?

    DRAFT CONFORMITY ASSESSMENT (MUTUAL RECOGNITION AGREEMENTS) (AMENDMENT) REGULATIONS 2022 · 2022-12-13 · READ IN HANSARD

  40. Otherwise, we would effectively have a process for authorising CABs for exports and imports under the MRA, and a separate arrangement in the UK for CABs to be looking at exports and imports in the other eight sectors not covered by the MRA. I would be grateful for that clarity, because if we in this House are clear, it will be easier for the businesses that are having to make decisions—possibly very quickly, if they are not aware of these arrangements; there are probably just two weeks to go—to be clear as well. The explanatory memorandum to the MRA suggests that the five sectors covered collectively by the MRA represent £400 million of bilateral trade. That is good news, although we want it to be more.

    DRAFT CONFORMITY ASSESSMENT (MUTUAL RECOGNITION AGREEMENTS) (AMENDMENT) REGULATIONS 2022 · 2022-12-13 · READ IN HANSARD

  41. Paragraph 5.2(b) of the explanatory memorandum to the MRA says: “If a business is: exporting to Switzerland, but not the EU; and in sectors where third party conformity assessment is required”— which I believe refers to those eight sectors— “it will need to use a Swiss or other EU-approved CAB to place products on the Swiss market for those sectors.” Will the Minister clarify where he would expect the Swiss conformity assessment body that would cover those eight sectors to be located? It is a genuine question: would that be in the UK, or would that have to happen when those products reach Switzerland, and be done there by CABs authorised by Switzerland or the EU? It is not clear to me what is implied by needing to use a Swiss or other EU-approved CAB to place products on the Swiss market for those sectors.

    DRAFT CONFORMITY ASSESSMENT (MUTUAL RECOGNITION AGREEMENTS) (AMENDMENT) REGULATIONS 2022 · 2022-12-13 · READ IN HANSARD

  42. In relation to the eight sectors that fall outside the UK MRA, what assessment have the Government made of the UK’s competitiveness in those markets for businesses that may be developing and exporting products? I am sure the Minister has asked these questions of his officials. Does he also estimate that we might otherwise be likely to see a drop in exports to Switzerland in those sectors, if there are extra costs associated with being able to export into the Swiss market? I am sure there has been some attempt to ask that question as well, because obviously we do not want to see any further drop in exports from UK businesses to Switzerland.

    DRAFT CONFORMITY ASSESSMENT (MUTUAL RECOGNITION AGREEMENTS) (AMENDMENT) REGULATIONS 2022 · 2022-12-13 · READ IN HANSARD

  43. Are there small businesses trading with Switzerland that are going to be hit by this—that could see their businesses affected quite dramatically from 1 January—and what advice does the Minister have for them? The SI is unaffected by the UK Government’s announcement on 14 November that they will continue to recognise the EU CE mark in many sectors until the end of 2024. The Minister and I debated that announcement just last week. If the SI is unaffected, could the Minister explain whether the Government approached the Swiss authorities to seek any further extension of the Swiss temporary measures, bearing in mind that the Government are now extending the recognition of the EU CE mark for another two years? If so, when did they do so, and what was the outcome of those discussions?

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  44. Businesses are definitely having a difficult time at the moment, because the cost of doing business is rising, with increases in material costs, energy costs and labour costs. We are seeing an increase in business deaths every quarter and businesses are incurring costs, so I would be grateful if the Minister could give the Committee any further clarity on the size of the 300 affected businesses. Are they small businesses, medium-sized businesses or large businesses? Large businesses may be more able to assume the costs. Small businesses may be doing most of their exporting to Switzerland, as some countries have more arrangements for bilateral trade.

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  45. How has that cost been calculated, and will the Minister expand on where the additional costs come from? I am keen to understand that, because the explanatory memorandum also states that the Government are keen to spread awareness of the arrangements so that businesses are aware of what could happen to them from 1 January in relation to the eight sectors, which account for less than 30% of our trade. What comprises the estimated cost of £2,300 for the 300 businesses that the Government think will be affected? How are the Government informing the 300 affected businesses of the impending cost? What position will they be in if, for example, cash flow and income are tight?

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  46. The explanatory memorandum for the draft SI states that the Conformity Assessment (Mutual Recognition Agreements) and Weights and Measures (Intoxicating Liquor) (Amendment) Regulations 2021 are amended “to ensure that specific products assessed by bodies in Switzerland recognised under the MRA can be placed on the market in Great Britain; and, to enable the Secretary of State to designate and monitor UK conformity assessment bodies to assess products against Swiss requirements.” For businesses that may be exporting into the eight remaining sectors, I would be grateful if the Minister could clarify whether it will now be slower and more costly to export goods to those sectors in Switzerland. The explanatory memorandum suggests that there is a cost of £2,300 for the 300 businesses that the Government believe will be affected.

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  47. The explanatory memorandum for the MRA states that existing conformity assessment certificates “issued in the UK before 31 December 2022 in the eight sectors currently covered by temporary measures, but which are not captured in the Agreement text, will no longer be valid for entry of products not already placed on the Swiss market.” Paragraph 5.2 of the explanatory memorandum for the MRA gives the Government’s advice on what businesses will need to do in those circumstances.

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  48. I would be grateful if the Minister could clarify whether this means that the UK is committing to not have any divergence in standards for products under the five sectors covered by the MRA with Switzerland. The other eight sectors covered by the Swiss temporary measures use only the EU CE mark domestically; there is no standalone Swiss marking. As I have mentioned, they are covered by the MRA we are discussing because they are not subject to Swiss standalone marking, so the assessment would be against EU standards, which neither Switzerland nor the UK has any control over.

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  49. However, the Swiss Government have said that the temporary arrangements will expire at the end of 2022. Without a replacement agreement, UK exports to Switzerland that need third-party conformity assessment would need to use a Swiss conformity assessment body. To address that, I understand from the Minister’s remarks that the UK Government have had to secure an MRA with Switzerland covering five of the sectors included in the Swiss temporary measures. Those sectors also use the Swiss CH mark, which the Minister was referring to. I thank him for clarifying that the MRA is happening because the channel through which products have been confirmed is the Swiss CH mark, not the EU CE mark, which is a parallel channel.

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  50. If it is not yet clear why the UK had to reach the MRA with Switzerland that we are debating today, the EU and Switzerland have an MRA, but following Brexit that no longer applies to the UK. The Government have attempted to retain as much as possible of its coverage. The UK-Switzerland free trade agreement included mutual recognition of conformity assessment, effectively carrying forward arrangements for three sectors from the EU-Swiss agreement. Those accounted for some 70% of UK-Switzerland trade previously covered by the EU-Swiss agreement. Most of the remaining 30% of trade that the UK does with Switzerland was then covered by the Swiss temporary arrangements, covering 13 sectors. These were based on the Swiss being content that UK regulations did not diverge from Swiss regulations.

    DRAFT CONFORMITY ASSESSMENT (MUTUAL RECOGNITION AGREEMENTS) (AMENDMENT) REGULATIONS 2022 · 2022-12-13 · READ IN HANSARD