James Wild
MP for North West Norfolk · Conservative · United Kingdom
“The Minister failed to respond to any of the questions asked by the shadow Minister, my hon. Friend the Member for Reigate (Rebecca Paul), so I will try again: some companies have expressed an interest in the business, so what discussions is the Minister, or his colleagues, having with potential buyers?”
“Passengers on the Fen line from King’s Lynn are suffering repeated cancellations and an unacceptably poor level of service. Now that the Government control both the track and the trains, will the Transport Secretary intervene and demand a robust action plan to sort out this poor performance?”
“The Hunstanton coastguard rescue officers I have met responded to 150 emergency shouts last year, and the small payment helped them to perform this role for locals and visitors alike.”
“Friend the Member for Keighley and Ilkley spoke about the offensive nature of those letters and their dreadful impact on victims—telling them that in September the first wave of criminals will be released. Others will not yet have been informed.”
“I completely agree with my hon. Friend. The Lady Chief Justice appeared before parliamentary Committees to tell MPs that she could have more sitting days if only the Government would produce, I think, about £20 million of funding—a fairly minimal amount in the scheme of the £1.3 trillion that the Government spend every year—rather than go…”
“It is a privilege to follow my hon. Friend the Member for Keighley and Ilkley (Robbie Moore), whose incredibly powerful speech gave voice to the victims and the impact that the horrific abuse has had on them. He has led on this issue consistently in this House, and his words should carry incredible weight.”
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“Passengers on the Fen line from King’s Lynn are suffering repeated cancellations and an unacceptably poor level of service. Now that the Government control both the track and the trains, will the Transport Secretary intervene and demand a robust action plan to sort out this poor performance?”
“The Minister failed to respond to any of the questions asked by the shadow Minister, my hon. Friend the Member for Reigate (Rebecca Paul), so I will try again: some companies have expressed an interest in the business, so what discussions is the Minister, or his colleagues, having with potential buyers?”
“The Hunstanton coastguard rescue officers I have met responded to 150 emergency shouts last year, and the small payment helped them to perform this role for locals and visitors alike. However, with 50% of officers in East Anglia saying they would quit or reduce their availability, is the Minister really prepared to take responsibility for the risk to public safety, or will he now simply stop these changes from coming into effect in September while we work on a long-term solution?”
“The Minister once again rolled out the Aunt Sally argument that without these measures the justice system would have fallen over, but it is now two years since the general election; two years in which the Government have chosen to let people out early rather than take action on prison places. There are 16,000 people on remand in our prisons, yet the Government are failing to ensure that our courts are used to the maximum capacity.Today, for example, 14% of the Crown courts are not sitting. Where is the commissioning of emergency prison capacity? Where is the greater use of the rapid deployment cells that the previous Government rolled out, including at HMP Norwich in my county? Where is the urgency? That should be a national priority.”
“Friend the Member for Keighley and Ilkley spoke about the offensive nature of those letters and their dreadful impact on victims—telling them that in September the first wave of criminals will be released. Others will not yet have been informed. The Minister once again failed to give the basic figure for the number of sex offenders who will be released under the provisions. Surely he must know—it is his job to know—and he should be honest and up front with the House. We can already picture the unedifying scenes of bottles of champagne being opened at the prison gates when these offenders are released. Meanwhile, the survivors of their crimes will—as they told every Member of this House in the letter to which the shadow Justice Secretary has referred—be feeling scared, heartbroken and angry that their perpetrators are not facing justice.”
“Sadly, it has been necessary to bring forward this motion, because Labour Members and Liberal Democrats in the House of Lords voted down our amendments to the Sentencing Act that would have done precisely that: prevent the early release of such offenders. Now it seems that there will not be a vote and our motion will simply be accepted. That is very welcome if it reflects a shift in policy, but the Minister who opened the debate was not clear whether he accepted that shift in policy or was simply making a tactical retreat on a vote that the Government knew they would lose. He repeatedly set out the rationale for the changes, as he had done earlier today to the media. The urgency is clear. Thousands of victims have received letters—my hon.”
“It is a privilege to follow my hon. Friend the Member for Keighley and Ilkley (Robbie Moore), whose incredibly powerful speech gave voice to the victims and the impact that the horrific abuse has had on them. He has led on this issue consistently in this House, and his words should carry incredible weight. Today we are debating what should be an uncontroversial motion: to exclude from the Government’s automatic early release scheme anyone convicted of a serious offence against a child or an adult, including rape, and anyone convicted of attempted conspiracy or incitement to commit such offences. By any definition, those are some of the most serious crimes. I find it very difficult to understand how anyone would oppose the common-sense position that sex offenders should not benefit from the Government’s early release scheme.”
“That is despite Ministers saying that the most serious and violent offenders would be excluded from this change. Anyone who has listened to the testimonies shared with the House by my hon. Friend the Member for Keighley and Ilkley could not consider that they do not represent the most serious and violent offenders.”
“I completely agree with my hon. Friend. The Lady Chief Justice appeared before parliamentary Committees to tell MPs that she could have more sitting days if only the Government would produce, I think, about £20 million of funding—a fairly minimal amount in the scheme of the £1.3 trillion that the Government spend every year—rather than go down the route of removing people’s right to jury trials in certain cases. The prison places coming online are those commissioned by the last Government. Yes, I accept that we should have commissioned more, but the Minister has confirmed in parliamentary answers that no new prisons have been planned or approved by this Government since the general election. Politics is about choices, and Ministers have chosen early release and softer sentencing rather than ensuring public protection and punishment.”
“Those who were in the Gallery earlier and those victims across the country deserve answers today on what the Government will do. By passing the motion, we can begin the process to prevent those guilty of rape or grooming from being released early, we can provide reassurance to victims that we put their interests first, and we can show that public protection is our priority.”
“Member for Makerfield is looking at how to tighten the scheme to exclude such offenders, but if that change is to happen, the legislation needs to come forward now. We know that the new Prime Minister will not be in post until we have risen for the summer recess. Tomorrow and Thursday, we will have general debates in the House. The motion—it looks like it will pass without a Division—calls on the Government to bring forward legislation immediately, so if the Government are accept the motion, what is their plan? Will they bring forward commencement regulations to delay implementation, as set out earlier by my hon. Friend the Member for West Suffolk (Nick Timothy)? Will they table emergency legislation tomorrow, Thursday or next week? We had no response on that from the Minister, which I found deeply disappointing.”
“I agree with my right hon. Friend. It looked like Labour MPs were set to be whipped against this motion to stop the early release of sex offenders who had committed crimes against children. When I was first elected to this House, I had to explain to my Whip and the Minister in post that I would not support a measure to bring forward an early release scheme for offenders—I expect that many of my newly elected colleagues did the same—and that measure was withdrawn. While MPs may not be whipped to vote against the motion, and there seems to be common cause from Government Members in the Chamber, we heard nothing in opening from the Minister, who spoke but failed to address the next steps. There might be some grounds for optimism as apparently the right hon.”
“Those things cannot all be blamed on the conflict in the middle east, so it is little wonder that this zombie Government are under pressure to show that they have a plan for energy costs, business costs and the strain on ordinary family finances. Given the title of the Bill, people might expect ambitious measures in it to deliver cheaper energy for consumers and businesses, make our economy more competitive, and unwind the bills, levies and targets that are increasing costs, but there are not. Instead, this is a small package of measures with no serious plan to ease the burden.”
“I know that this legislation is fast-tracked, but the Minister did rattle through very rapidly. I will seek to follow her lead as best I can. It is a pleasure to debate the Bill on Second Reading and its measures on increasing the electricity generator levy, increasing the mileage allowance and introducing the 12-month HGV vehicle excise duty holiday. We are broadly supportive of the measures. However, we must consider the wider context in which we are debating them. The energy price cap has today increased by 13%, inflation is well above target, economic inactivity is rising, we have high borrowing costs, taxes are at record levels and are set to go higher, and, sadly, growth is non-existent.”
“The Conservatives welcome the measures, as far as they go. However, they have not been brought forward by choice; they have been forced by the consequences of the Chancellor’s decisions. Taxes remain at record highs, and are set to go higher, costs continue to rise, and growth has stalled. Against that backdrop, the measures offer very limited relief.”
“More than 95% of road haulage firms are small businesses with small margins, so any increase in costs is a challenge. The Government say that the measure will save £600 for a typical lorry, and £900 for the largest vehicles. At peak prices, filling a single HGV costs more than £1,000. Yes, the measure is helpful, but not markedly so. Taken together, the measures reveal a Government reaching for short-term fixes while avoiding the harder questions. On the generator levy, they are demanding higher taxes without certainty or proper costings—all while displaying a lack of urgency on reforms to decouple energy prices. Mileage allowances are a partial change, and one that leaves high-mileage workers behind. The vehicle excise duty holiday is a temporary relief without a plan for what comes next.”
“However, it was only a partial one, and those costs are going to start hitting from as soon as January. For the logistics sector, which pays £5.4 billion in fuel duty, a 1p increase per litre will increase costs by nearly £83 million. Perhaps the new Chancellor will recognise the folly of that approach and reverse the plans they inherit. We welcome the HGV vehicle excise duty holiday. That duty had been frozen since 2014 until Labour came into office. For a year from today, HGVs will pay just £1, which will be a significant saving for the sector. However, the Government must recognise the full scale of the pressures facing hauliers and accept responsibility for those they have added; the Chancellor did not have to increase business rates, transport taxes and fuel duty.”
“If Ministers accepted that the 45p rate needed to be increased, can the Minister explain how they justify leaving the longer-distance rate untouched at 25p? As has been set out, this is the first increase for some time, which raises the question of how we can avoid such a long period between increases in future. I accept that indexation would be complicated, but what commitments will the Minister make to regularly review increases? Mileage is an important part of motorists’ costs, but the bigger impact comes from fuel duty. At the last Budget, the Chancellor announced plans to scrap both the 15-year freeze and the 5p cut that the Conservatives put in place. It was only after pressure from the Opposition that the Chancellor made a U-turn.”
“The second measure on increasing mileage payments to 55p for 10,000 business miles is something that we support. It is right that those workers, including carers, who are using their own vehicles for work should not be left to absorb the rising cost. The measure is backdated to the start of the financial year. When winding up, can the Minister guarantee that His Majesty’s Revenue and Customs will not pursue anyone for any income tax or national insurance contributions that may otherwise have arisen on payments made before the legislation took effect? The increase applies only to the first 10,000 miles. When we debated the resolution, the Minister said that the Government considered an increase in the 25p rate, but that it did not represent good value for money.”
“That matters, because part of the rationale for the higher levy is to generate revenues to support businesses and households. What measures is the Minister proposing in that regard? Surely not the Thorpe Park VAT cut, because that is funded by changes to corporation tax. Can the Minister enlighten us on what other benefits the consumers—my constituents—are getting from the tax? The levy needs to be seen in the context of the Government promising to reduce energy bills by £300—instead, bills have increased by around that amount. That is what happens when Governments do not have a plan. The Conservatives would cut bills for businesses and consumers through our cheaper energy plan, taking VAT off energy bills, axing the carbon tax and legacy subsidies, and backing the North sea to get drilling.”
“The House of Lords Constitution Committee previously recommended that for fast-track legislation, sunset clauses should be the default presumption. An amendment to add one is outside the resolutions of this House, but we have tabled a new clause that would require the Government to come forward before the due end date in March 2028 to say whether they think the levy should continue. There is an absence of any publicly available costings on the measures. That is true for all the measures, yet this House is being asked to approve an indefinite extension. When the levy was first introduced, the Office for Budget Responsibility predicted that it would raise £2.3 billion a year, but the out-turn in 2024-25 was only £700 million.”
“In the winding-up speech, will the Minister provide an update on when the consultation on the CfDs will be launched, when the first contracts are set to be awarded, and if that will be through an auction or an allocation round? The Government have said that their intention is to extend the levy beyond 2028, but with no clarity on when it will end. The Government do not know how long they want it to last and have said there will be further legislation on that point. The Exchequer Secretary, in the debate on the resolutions last week, said that this was something “the Government are considering”. That is hardly a robust approach when bringing legislation before the House. Indeed, it seems like a hasty measure to give the Chancellor something to announce.”
“To increase the rate from 45% to 55% and to extend it beyond 2028, with no end date. This is another example of Ministers reaching for higher taxes while offering no certainty in return. The Government say, to answer the point made by the hon. Member for St Austell and Newquay (Noah Law), that the increased rates will support the decoupling of gas prices by incentivising generators into voluntary wholesale contracts for difference, but while the new higher levy applies from today, those new contracts are yet to be seen, the proposed strike price is not known, the likelihood of generators accepting them is therefore unknown and in question, and the value for money for taxpayers is yet to be proven. Will the Energy Secretary still be in post to oversee the reforms? We all sincerely hope he will not be in the Treasury.”
“I agree with the hon. Gentleman on that point, which I will come to shortly. I just note that when the Secretary of State for Energy Security and Net Zero had the opportunity to really break that link, he backed away from doing so. This measure does so in a limited way, but it does not make the ambitious reforms that could have been made by the Energy Secretary. The electricity generator levy— [ Interruption. ] I am sure the Parliamentary Private Secretary, the hon. Member for Hitchin (Alistair Strathern), can intervene if he is allowed. The electricity generator levy was introduced by the previous Government in 2023 as a temporary windfall tax applying to revenue above the benchmark price. It was a short-term response to exceptional circumstances and is due to end in 2028. What do the Government propose?”
“Given that the levy kicks in from today and the Minister said that the consultation will be published before the end of the year, six months henceforth, and then legislation will have to go through, are the Government considering any backdating provision? If a company generator wanted to go into one of these wholesale CfDs, doing so would allow it to have that backdated; at the moment, it would not have the option to go into the wholesale and will just be hit with the higher levy.”
“I think the Minister might be coming to a conclusion, and I would not want him to miss the opportunity to refer to the House of Lords Constitution Committee and the presumption that fast-tracked legislation should include sunset clauses. Could he explain why the Government have chosen not to follow that guidance in this case?”
“Presumably she had advice from officials before she brought the measure forward, so why can she not share with us the indicative amounts in order to aid our debate? The Government also failed to give clarity on the duration of the electricity generator levy—we are supposed to just wait and see—and on the long-term support needed for businesses and working people. I urge hon. Members to support our two modest new clauses.”
“New clause 5 would ensure that Parliament has the evidence to judge whether the policy is working and whether we should support an extension. The Government have brought forward a package of measures that are more of a short-term fix than a serious plan. That package includes an indefinite tax on electricity generators, a limited increase in mileage allowance, and only temporary relief for HGV operators. They have failed to give the House the clarity that it deserves about the fiscal impact of the measures. The Exchequer Secretary referred to the OBR scoring of the original levy rate. That scoring was provided at the time that the levy was announced because we announced it at a Budget. The problem we have is that this Chancellor makes announcements outside of a Budget, and then refuses to provide any costings or estimates.”
“It would also assess the impact on the public finances, the competitiveness of the freight sector and operating costs for goods vehicle operators. If the Government’s measure improves supply chains and helps firms keep goods moving efficiently across the UK, then they should demonstrate that. If it does not, Parliament should know that too. The new clause also asks the sensible question of whether this temporary reduction should continue. Businesses need certainty, not a series of one-year sticking plasters. Haulage firms plan investment, staffing, maintenance and route costs on a long-term horizon, not on the Treasury’s timetable. In the face of mounting pressures, the Government should assess whether this support needs to be continued in the future. Temporary relief is no substitute for a coherent growth strategy.”
“It would force Ministers to explain whether this short-term relief is delivering and whether an extension might be appropriate. The temporary holiday is welcome, but it is limited; it is not a silver bullet, as the Exchequer Secretary has acknowledged. Equally, I acknowledge that it is a good measure and the right starting point, because the freight and logistics sector is under immense pressure from rising operating costs, fuel costs, business costs and wider economic uncertainty; more than 95% of those road haulage firms are small and medium-sized enterprises operating on margins as low as 2%, and the sector simply cannot absorb repeated shocks. A policy like this should therefore be tested properly, and the long-term benefits properly weighed. New clause 5 would do precisely that.”
“This new clause is a call for scrutiny, for transparency and for certainty, and the Government should have no objection to a review by March 2028 and a statement on whether they intend for the levy to continue. Doubtless the Exchequer Secretary, who is consistently consistent, will say that all measures are always kept under review by the Treasury. If so, I look forward to him accepting the new clause, which simply says that there will be a review; otherwise, I will urge other hon. Members to support it. Similarly, new clause 5 would require the Treasury to review the impact of the temporary VED rates for goods vehicles and to provide a report to Parliament. This report must consider whether it remains appropriate for the temporary excise duty rates on goods vehicles to continue, and it should be produced before 30 June 2027.”
“It would require that implications for consumers and energy security are considered. If the Government are going to increase the tax burden on generators, they must be prepared to show what that means for future investment decisions, project financing, and the UK’s attractiveness as a place to build and expand capacity. The new clause also asks questions about electricity prices and consumer bills. Ministers have suggested that this measure and the policy may help to reshape the market—to decouple gas and electricity prices—but the measures designed to do that have not been published. All we know from the Exchequer Secretary is that they will be published by the end of the year. In those circumstances, we should not be asked to accept on trust that a higher and indefinite levy will have no adverse consequences.”
“In last week’s debate, the Exchequer Secretary to the Treasury said: “we have not made a definitive announcement on whether that rate will last a short period or will go on into the future, but we will update in due course”. —[ Official Report , 24 June 2026; Vol. 788, c. 397.] In his winding-up speech on Second Reading, the Exchequer Secretary said he wanted to consider how the impact of the wholesale contracts for difference might impact on the levy. I gently suggest that a joined-up policy might have considered those two things before bringing forward one of them, because that is not a sound way to make energy or other policy. If the Treasury believes the measure to be justified, it should welcome a formal review. This new clause matters because investment in energy depends on confidence, predictability and a stable fiscal framework.”
“3.15 pm New clause 4 would require the Treasury to review the impact of increasing the generator levy to 55% and to report on its findings to Parliament before 31 March 2028. Importantly, the review should also consider whether the levy should continue to be charged at a rate of 55%. Due to the resolutions passed by the House, it is not possible to seek to amend the Bill to put a levy end date on the face of the Bill, so this is a modest amendment, but it is an important one because it goes to the heart of whether this Government have thought through the consequences of their approach. The levy was originally introduced as a temporary windfall tax, designed to capture exceptional receipts in extraordinary market conditions. The Government are now proposing to raise it further and to extend the regime, but without setting out an end date.”
“I will be speaking primarily to new clauses 4 and 5 tabled in my name and those of my hon. Friends, specifically related to the electricity generator levy and the HGV vehicle excise duty holiday. I have to say to the Exchequer Secretary that it is quite nice to see a Treasury Bill that is so concise, rather than the hundreds of pages that we see in every Finance Bill, adding complexity and costs for businesses. I hope that he will take that point back to the Treasury when he returns with the next Finance Bill. I think he has also given a commitment, or expressed an ambition: he said he likes to scrap taxes, so I hope that we will see more taxes scrapped. Now we turn to one that he is increasing, rather than introducing.”
“I am happy to clarify that for the Minister. My point was rather that if the Government are to introduce a higher levy rate on the basis that it will incentivise people to move into wholesale contracts for difference, it might be as well to have the policy for those wholesale contracts for difference ready.”
“I am sure that he will have many more Bills to take through as the Exchequer Secretary to the Treasury, but this may well be the last piece of legislation to be granted Royal Assent before the Prime Minister shuffles off the stage. For this Bill and this Prime Minister, they think it’s all over—it is now.”
“This has indeed been fast-tracked legislation, at 90 minutes—no need for extra time here. [Laughter.] There is more. The Government have sought to move rapidly to impose a higher levy on generators, but the measures designed to decouple electricity and gas prices have not been given the same priority. Motorists using their cars for work will welcome the increased mileage rates, but those driving more than 10,000 miles a year will be puzzled that those rates remain unchanged. Reducing the costs on those who keep goods moving around our country will make a difference, but that has to be seen as only part of the ledger and set against higher employment and higher taxes. I congratulate the Minister on so ably shepherding the Bill through this afternoon.”
“Excessive energy costs are undermining our growth and productivity prospects, yet in the most recent Finance Act, the Government raised the climate change levy rate, at a cost to business of £2 billion a year. That is a significant burden on businesses that are already struggling. We need cheaper energy, which is what the Conservative’s cheaper energy plan would deliver. We welcome the lightening of the load on businesses, and we support the agreements, but the Government should stop adding levies and costs to the energy bills of companies and individuals, and instead look to remove them. We will not oppose the statutory instrument, but I look forward to hearing the Minister’s answers to my questions.”
“I would also be interested to know whether there is the potential for those sectors to be given further opportunities to apply. I will not dwell on the buy-out fee correction, because the adjustment goes to four decimal places. I am not sure that will have a substantial impact, but I would be grateful for the Minister’s reassurance on that. I have previously welcomed the Government’s decision to extend the climate change agreements scheme for a further six years. When businesses are facing headwinds, the extension offers much-needed respite. Nevertheless, as all Members will know, British manufacturers pay considerably more for energy than their competitors. Compared with the EU, UK firms pay 50% more, and the gap between the UK and America is much larger.”
“Applications were made for the inclusion of seven processes, and in October the Government announced that the production of automative-grade battery cells, the packaging of spirits and the mechanical recycling of plastics were all to be included. The changes do not take effect until January 2027, over three years after the consultation opened—a lengthy process, as I am sure you will agree, Mr Wishart—and the response to the consultation highlighted that more time was needed. Will the Minister explain why the process has been so lengthy? As I mentioned, applications were made for the inclusion of seven processes, and three were selected. I have looked into it but was unable to find the information, so perhaps the Minister can tell us what the other processes were and explain the basis on which they were rejected.”
“It is a pleasure to see you in the Chair, Mr Wishart, presiding over our proceedings. Given the origin of this measure, with the policy work that underpins it having begun under the previous Government, we will not oppose it, but as the Minister may expect, I have a few questions for him. The climate change agreements allow eligible facilities to reduce their energy use and, in exchange, pay reduced rates of the climate change levy. The discounts can be significant—up to 92% on electricity. The regulations make three changes: they expand the scheme to include the three new processes the Minister referred to, they consolidate the existing eligibility rules and they correct a numerical error in the formula used to calculate buy-out fees. The consultation that preceded the changes was launched in November 2023 and closed in February 2024.”
“It is good that the Chancellor has had those meetings, but perhaps they have come too late, because when the former Defence Secretary resigned, he said that the Treasury was “unwilling” to provide the resources needed to defend the country against rising threats. The Chancellor has said that national security always comes first, so why this dereliction of duty? Why is she failing to tackle the ever-expanding welfare budget and blocking the defence investment plan from getting the funding needed to meet the threats that we face?”
“Next week, those swingeing 50% tariffs on steel imports will hit manufacturing businesses across the country, putting thousands of jobs at risk. While they are intended to protect domestic production, industry is warning that many grades simply are not made in the UK in the quantity needed. It is a simple question for the Chancellor: will she guarantee that tariffs will not apply where businesses cannot get steel in the UK?”
“If Ministers are determined to press ahead, we have two further requests: first, that they delay the implementation of these tariffs for at least six months, to give manufacturers as much time as possible to adjust, and secondly that they develop more forensic definitions and exclude grade sizes and specifications of specialist steel that is not produced in the UK. The Opposition will vote against this measure. We ask the Government urgently to reconsider their plans, and instead to protect jobs and promote economic growth.”
“National steel capacity matters for defence, for national security and for supply chain resilience, but these regulations simply fail to achieve the Government’s objective. Instead, they pose a threat to 300,000 jobs in downstream manufacturing. Ministers say that they are listening, but they have not put forward any changes or any solutions to the problems raised by companies. There is still time—just—for them to do so and avoid the enormous damage that we are being warned about.”
“Lastly, I turn to a topic that I raise regularly when the Treasury brings measures forward: the absence of a substantive and costed impact assessment. It is frankly astonishing, with a change of this magnitude, that the downstream effects have not been properly looked at by the Treasury or the Department for Business and Trade. The explanatory memorandum, such as it is, admits that these measures will “raise steel prices”, “increase…costs for user industries”, harm downstream businesses and “impact Small or Micro Businesses”. I wonder why the Government have not done a fully costed assessment of what that will mean for our aerospace, defence, construction and other sectors that rely on steel. Perhaps the Minister can explain that.”
“I understand that, and I understand that discussions are going on with the EU, but that means that companies still lack certainty before these measures come into force in two weeks. I implore the Minister to ensure that tariff quota levels are set at a sufficient volume to avoid the huge damage to our industrial base that companies have made very clear is likely if things proceed on this basis. Will the Minister commit to keeping the regulations under review? At the moment, it is proposed that they be reviewed only every 12 months. That is utterly inadequate, given the risk we are all being told about by companies in our constituencies, so I hope he will commit to reviewing them more regularly.”
“Even at this late stage, what engagement is the Minister having—perhaps with his ministerial colleagues who are leading on much of the policy, and with industry—to ensure that costs are contained and downstream manufacturing is protected? If the tariffs are approved, they will come into force and quota rates will apply, but the Government have already said that those rates will be substantially lower than under the steel safeguard. Cutting quota volumes by an estimated 60% overall and by up to 97% in some categories will be achieved through the negative procedure. In discussions with hon. Members, including Labour Members, the Business Minister said that the Government were still negotiating those changes and where the tariffs would sit.”
“Vital inputs are made only by UK Steel, which is behind its planned levels of production and would of course then be a monopoly supplier. Firms have to risk either unpredictable supply or expensive imports. Given the long-term fixed-price contracts that are common across the defence supply chain, involving tens of thousands of small and medium-sized enterprises, a 50% tariff imposed through these regulations cannot easily be passed on, to say it lightly. One SME at the roundtable told me that it would mean an extra £1.2 million on a turnover of around £30 million, which it would simply be unable to fund. Companies will be incentivised to move production overseas. Ministers should be listening to these sirens and acting before it is too late and jobs are offshored.”