Gareth Davies
MP for Grantham and Bourne · Conservative · United Kingdom
“Will the Trade Minister address that point when he responds to the debate, and confirm that the Government still hold these concerns about practicality? Labour Members have been questioning that.”
“Not right now, and I have already taken an intervention from the hon. Lady. Finally, and more broadly, we worry that the campaigners ultimately want this ban to become a gateway to a wider ban on trade with Israel. If that is the case, they simply do not accept the importance of the relationship that we have with Israel.”
“I will make a little progress in the interests of time, because I know that Members will want to hear from the Minister. It is the official Opposition’s view that a proposed ban on the trade of Israeli settlement goods and services will bring about the same result as I have been talking about and will prove counterproductive and ineffecti…”
“These include the decision to cancel trade talks while Hamas were still holding hostages after the 7 October attacks; the decision to impose export licence suspensions while Israel was burying hostages so barbarically taken from their loved ones; and the decision to recognise a Palestinian state when no formal peace process had been agree…”
“I thank Members from across the House for their contributions today, and I congratulate the hon. Member for Sheffield Central (Abtisam Mohamed) on securing this debate on trade—granted, of course, by the Backbench Business Committee.”
“] I see that you are asking me to conclude, Madam Deputy Speaker. We firmly believe that the proposed trade embargo would have no practical effect whatever on the situation in the region. We are concerned that it is part of a broader push by Israel’s opponents to isolate the Jewish state politically and economically.”
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“At the same time, the official Opposition’s view is that settlements are not conducive to achieving long-term peace. We believe that the Israeli Government should firmly clamp down on settler violence, and we are against the expansion of settlements.”
“I thank Members from across the House for their contributions today, and I congratulate the hon. Member for Sheffield Central (Abtisam Mohamed) on securing this debate on trade—granted, of course, by the Backbench Business Committee. Before I turn to the specifics of what we are debating today, it is important to be clear from the outset that Conservative Members, like all Members who have spoken, want to see an end to violence and conflict in the west bank and in Gaza. Israelis, Palestinians and people across the region deserve to live in peace with security, and it is my party’s long-held position that this can be best achieved through a two-state solution. We also want to see the Abraham accords expanded and wider regional barriers to peace overcome.”
“These include the decision to cancel trade talks while Hamas were still holding hostages after the 7 October attacks; the decision to impose export licence suspensions while Israel was burying hostages so barbarically taken from their loved ones; and the decision to recognise a Palestinian state when no formal peace process had been agreed. Of course we support a two-state solution, and it is right that we would recognise a Palestinian state, but recognition of a Palestinian state is only meaningful if it is part of a formal peace process. As my shadow ministerial colleagues have pointed out, the Government’s actions to date have left our relations with Israel in a deep freeze, with our ability to influence the situation in the region severely diminished.”
“I am very grateful for the hon. Lady’s intervention. I will address the point that she raises later in my speech, but our shared aim across this House, which is peace in the region, cannot be achieved without Britain maintaining an enduring relationship with Israel and with our allies in the region. It is through engagement that we will be able to achieve the resolution we all want. Engagement is vital to achieving the peace that unites the House today. That is why I regret that, in my view and the view of the official Opposition, Britain’s influence has been diminished to such a degree due to a series of misjudged decisions.”
“The hon. Lady is wrong to suggest that we are saying we should do nothing. If Members remember, it was a Conservative Foreign Secretary in 2024 who imposed sanctions on the settlements. The House has heard me say from this Dispatch Box that the expansion of settlements is wrong. She is being unfair. What I am talking about is a point of execution. We have to engage with our allies—Israel is a critical ally of the United Kingdom—and that is not done by banning trade with Israel.”
“We can be critical of our allies and we can be critical friends—of course we can—but what I am saying is that disengagement is not a solution to achieving what the House wants, which is peace in the middle east.”
“I am sure that the Minister agrees that it is vital that the Government take the full impact of any policy into consideration.”
“Will the Trade Minister address that point when he responds to the debate, and confirm that the Government still hold these concerns about practicality? Labour Members have been questioning that. It is all well and good making a point and arguing for an action, but the Government say that it cannot be executed, and it needs to be explained. I realise that many anti-Israel campaigners will not be concerned with the answers to these questions that I am posing of the Minister. They may not care whether a ban is effective or having an impact, but only that it should be in place. By the way, I have heard nobody in this debate mention that one in seven medicines dispensed by the NHS comes from Israel. Those who have suggested that we should have an outright ban on Israeli trade have offered no solution to that point.”
“I will make a little progress in the interests of time, because I know that Members will want to hear from the Minister. It is the official Opposition’s view that a proposed ban on the trade of Israeli settlement goods and services will bring about the same result as I have been talking about and will prove counterproductive and ineffective. Secondly, aside from the ineffectiveness of the policy, it is not even clear that it could be implemented, according to the Labour Government. The Government have repeatedly pointed out, as have many Members today, that a ban on settlement goods would be difficult to enforce. At the Dispatch Box last week, the Minister for the Middle East, the hon. Member for Lincoln (Mr Falconer), said that countries imposing such a ban are encountering “technical difficulties”.”
“To go further down this path would not serve British, Israeli or Palestinian interests at all, so we cannot support the proposed ban.”
“] I see that you are asking me to conclude, Madam Deputy Speaker. We firmly believe that the proposed trade embargo would have no practical effect whatever on the situation in the region. We are concerned that it is part of a broader push by Israel’s opponents to isolate the Jewish state politically and economically. The ban would be legally and administratively complex, it would have limited economic effect, and it would hinder diplomatic efforts to find a sustainable, long-term peace agreement between Israel and the Palestinians. No matter what Members might say or shout, the ban would not bring about peace in the middle east. We have already seen Britain’s voice marginalised and Britain’s ability to influence Israel diminished.”
“Not right now, and I have already taken an intervention from the hon. Lady. Finally, and more broadly, we worry that the campaigners ultimately want this ban to become a gateway to a wider ban on trade with Israel. If that is the case, they simply do not accept the importance of the relationship that we have with Israel. On trade and the economy, Israel is a technology and health superpower, with the UK-Israel trading relationship worth £6 billion. When the last Government launched bilateral trade talks in 2022, we estimated that the reduction in trade barriers could benefit almost 7,000 UK businesses in all Labour Members’ constituencies, including 5,600 SMEs employing 1.7 million people. I would be grateful if the Minister updated the House on the status of the trade agreement discussions. [ Interruption.”
“Do the Government accept that the measures will narrow employers’ practical routes to challenge a ballot’s validity? Overall, the draft order forms part of the wider Employment Rights Act 2025, which, as we in the official Opposition have consistently said, has damaged jobs and opportunity across our country. My party’s long-standing and long-held policy is therefore to oppose any parts of the legislation that we believe hand unions sweeping powers. As I have highlighted, real questions remain about the process used to bring this statutory instrument forward. For those clear reasons, we will vote against the measures.”
“Paragraph 9.2 gives an estimated annual savings range from “£2.0 million to £8.2 million, depending on the level of take-up”, which is confirmed in paragraph 9.3 as unknown. Why such a massive range from £2 million to £8 million, and why is there not a clearer estimate of the likely take-up of the new methods? As I said, the Government have said in their documentation that it is unknown. Paragraph 10.3 confirms that “A statutory review clause is included in the instrument.” When will that review take place, and what criteria will be used to judge whether the new voting methods have operated safely and fairly? Finally, law firm Morgan Lewis has warned that this statutory instrument “may reduce the scope for successful challenges based solely on procedural irregularities.” What is the Minister’s reaction to that statement?”
“Will the Minister explain why the trade union has been designated the responsible person for its own ballots, rather than, for example, an independent scrutineer? How does she seek, under the proposed set-up, to avoid a conflict between the union’s interest in the ballot outcome and its judgment on the practicality and security of the method used? Thirdly, paragraph 9.9 of the explanatory memorandum refers to a requirement for scrutineers’ electronic systems to be independently audited and certified. Will the Minister clarify which body is responsible for enforcing that standard and what happens if a system is found to be compromised or fails that certification process?”
“First, parts 1 and 2 of the draft order will, for the first time, permit electronic, hybrid and workplace voting for statutory trade union ballots, as the Minister said. Paragraph 5.14 of the Minister’s explanatory memorandum explains the Government’s reasoning against the pilot for electronic balloting, but I could not see any equivalent justification for workplace balloting, which, as the impact assessment contained in the memorandum confirms, has not been costed. Will the Minister explain why workplace voting, an entirely new voting method, will be introduced by the draft order without a pilot or costed evidence? Secondly, the Government confirm on page 2 that the trade union itself will be the responsible person determining which voting method or methods are used for its own statutory ballots.”
“It is a great pleasure to serve on this Committee and, as always, to see you in the Chair, Ms Vaz. It is also a pleasure to see the Minister in her place. I thank her for the explanation that she offered of the Government’s intentions with the draft order. It is important to make it clear from the outset that secondary legislation is always a balancing act. In this case, the balance is between modernising participation and trade union democracy, and ensuring that the safeguards protecting the integrity, security and fairness of statutory ballots keep pace with the methods used to conduct them. Those aims are not mutually exclusive, and it is our job to ensure that we get them right. To that end—this will be no surprise—I have a set of questions for the Minister, and I hope that she will be able to provide some answers.”
“The Minister has sought to address my question about the responsible person, but can she see the logic that I am trying to deploy? Why can a trade union be designated a responsible person, but an independent scrutineer cannot? Does she see how that opens up questions about the independence of the process, and did she think consider an independent scrutineer to avoid that criticism?”
“As a Conservative, I have always believed in the dignity of work, of the security and freedom that a regular wage brings, but today too many people are being held back. For their sake, it is important that we reflect on why. They are not being held back by a lack of their own ambition—that exists in abundance. Nor are many people being stopped by their parents, schools, colleges or universities—they all want them to succeed. Instead, more often than not, as the chief economist at the Institute of Directors has pointed out, it is Government policy that, in her words, is “choking off work opportunities for young people”. Over 1 million young people aged 16 to 24 are now not in education, employment or training.”
“We know that a good start in life is critical, and that is certainly true in the world of work. Everyone remembers their first job—sometimes fondly, other times not. A first job, however, is not just a first wage; it is the first time a young person learns the world of work. It teaches them that it will pay them for what they can do, that they have a role to play, that they are needed and that they belong. It is where they learn to turn up on time, to look a customer in the eye, and to take pride in a shift well worked and a wage honestly earned. So this debate is not insignificant; it is about whether the next generation gets that same chance or whether the Government pull the ladder up behind them. I contend that, rung by rung, that is exactly what they are doing.”
“I beg to move, That this House regrets the combination of the rise in employers’ National Insurance contributions, the impact of the Employment Rights Act 2025, and the regulations that make it more difficult for young people to get their first job; further regrets the destructive impact that the Government’s policies have had on entry-level, flexible and seasonal work in particular; also regrets the Government’s plans to give Mayors powers to introduce an overnight visitor levy, making staycations in England less attractive and less affordable, while risking jobs in the tourism and hospitality industries that depend on domestic visitors; calls on the Government to change course to support summer jobs, flexible working and seasonal work, on which the hospitality, leisure and retail sectors depend; and further calls on the Government to abolish business rates for high street businesses, to boost the economy and save summer jobs.”
“I am always grateful to the hon. Gentleman. He clearly learned in his first job the importance of showing up and he certainly does every single day in this place, which I commend him for. I agree with him, and I will set out in detail what I believe are the causes of the situation we find ourselves in today, with 1 million young people aged 16 to 24 not in education, employment or training.”
“That is exactly right. There is no point in pay being on an upwards trajectory, which we all support, if there are no jobs in the first place. Actually, under this Government, the record is clear that employment levels are in decline, not on a positive trajectory.”
“Of course, that is exactly why the previous Conservative Government had such a huge focus on skills, training and vocational courses. My own constituency of Grantham and Stamford benefited at the time from much-needed funding to boost skills and vocational training, so my right hon. Friend is absolutely right.”
“I will always agree on the need for financial literacy, but the point we are making today is that we believe in work—work as a route out of poverty, work as a way to increase the prosperity of this country—and we are highlighting the red tape that is now strangling businesses and preventing them from hiring young workers, which would otherwise give them a step on the ladder.”
“Let me make some progress for the moment. It is clear that something is not working, as we have all been saying, so we have to try to understand and explain why that is the case. We should not need to point this out, but higher taxes and more regulation are simply not conducive to economic growth or higher employment. If we consider what a business must now weigh up before looking to hire somebody, first, of course, there is the jobs tax—a tax that targets not profit or success, but the very basic act of employing another human being.”
“Time and again, we in the Opposition try to make the point that it is not the result of any one particular policy; it is the overall environment. We do not, as a state or as a Government, create jobs; it is businesses that create jobs, and they need to know that the Government are behind them. They need to know that there is an environment in which they can invest in people. Right now, for a combination of reasons, that is not the case.”
“Secondly, there are the permits, restrictions and forms—all the red tape that is wrapped around those looking to employ young people who simply want to work during the summer. That is a fact that we are trying to highlight through our motion today, and I encourage everybody to look at the detail of it, because it is not often talked about in this place, but out there, among young people, it is.”
“I am very grateful to the hon. Member for making that point. As I was saying, it is not one particular policy that impacts this issue. As he points out, it is a combination of factors, particularly to do with geography in rural areas such as his but also in Lincolnshire, and I agree that transport connectivity is a critical part of that. The way in which we pay for more public infrastructure, by the way, is to boost tax receipts through work, employment, enterprise and risk taking, but that point has been lost right now, because Labour’s £25 billion jobs tax has forced businesses to cut back hiring at every level, especially young people. Thousands of people have now been let go because of the Chancellor’s choices.”
“In effect, the Government’s half a billion-pound holiday tax represents little more than a self-inflicted trade tariff on domestic breaks, driving holidaymakers overseas.”
“Completely. There is even now a tax on the great British holiday, which impacts my hon. Friend’s constituency, Mr Speaker’s and many others. The overnight visitor levy, known as the holiday tax, threatens my hon. Friend’s area, just as it threatens Whitby, Scarborough, Blackpool, Bournemouth, the Norfolk coast and even my county in the Lincolnshire Wolds. The Government call it “modest”, but the seaside landlady who is struggling to fill her rooms calls it the difference between a season that works and one that does not. UKHospitality has warned that this tax means that consumers visiting destinations in England are charged double the tax of visiting Paris and 70% more than in Barcelona or Rome.”
“Indeed, their own law says that after six months, employees are protected from unfair dismissal, but I have to ask, where were these protections for the poor old Prime Minister, with whom they dispatched over a single weekend on WhatsApp? He got less probation than a probationary barista. It is one rule for the shop floor and another rule for the Labour Front Bench.”
“The facts are there for all to see. As I was saying, it is vital that we support the business community, and that includes small businesses. So often the narrative is about large multinationals, but it is SMEs and small business owners who drive our country forward and employ people across the country, especially young people. Another thing that businesses in this country are facing is the now infamous Employment Rights Act 2025, which has created so much red tape that the corner café has to focus on hiring a lawyer before it hires a waiter. The Government have laid down so many requirements for employers who need to move underperforming employees on.”
“Unlike the Government, we understand that to back businesses and employers is to back their customers and the people they employ too. We cannot lose the aspiration of a generation because of the barrier raised by the failed choices of this Government. Young people want to work. They want to do their bit; they want to build their own futures. It is our job not to stand in their way but to support them. Our plan does just that. The Labour party has spent all summer worrying about one man’s job. We say worry about all the others, back British businesses, back our high streets and back the young people of this country, who ask for nothing more than the chance to work.”
“We have a plan that respects young people and the fact that they want to work hard and succeed. We have a plan to back young people already in work and support those who want to find work and gain experience, especially through a summer job. Where Labour’s red tape harms employment, we will work with businesses to scrap it. That includes red tape on the employment of under-16s, such as the two-hour Sunday working limit. In sectors where Labour’s taxes threaten the largest impact, we will choose a different course: we will abolish business rates entirely for thousands of retail, hospitality and leisure businesses on our high streets, with a 100% relief benefiting one quarter of a million firms. We have ruled out the Government’s disastrous holiday tax on working families and treasured domestic tourist destinations.”
“They will regulate the Saturday job to within an inch of its life but run their own leadership contest with all the rigour of a one-ticket raffle. They will hold a whole by-election to find work for one man, while imposing a permit form on every under-16 in the country, a Sunday working ban and a levy on the town in which they live. It is the same old Labour time and again: “Rules for thee, but not for me.” It is two years since the last election, and Labour’s policies are starting to bite. Job vacancies are down by almost 150,000. Thousands of job opportunities have gone, and the youth unemployment rate is up by 2.5%—that is 735,000 young people now out of work. Borrowing costs have hit record highs. Labour is spending more on welfare than defence, education and prisons combined. Our economy is shrinking. It does not have to be this way.”
“The whole point here is that businesses, the country and people need flexibility. The whole country runs on choice and flexibility, and if there are unnecessary restrictions that harm economic activity and prevent young people from entering the workforce when they want to, that is clearly not a good thing for our country. I thank my hon. Friend for his intervention, because he makes a very good point about the Employment Rights Act, which we have made it very clear we disagree with. This is not just about the dismissal elements of the Employment Rights Act. The Act also makes British businesses have a fair and open recruitment process. Businesses must find the right candidate, on merit, from a proper field of candidates, and yet here we are today with the Government filling the highest office of the land from a shortlist of one!”
“In a written answer to me last month, the Government revealed that the Army is conducting a review of its reserve basic training. I believe that this was the first time that was disclosed to this House. Will the Secretary of State commit to putting the terms of reference for that review in the Library of the House, and will he commit to not closing Prince William of Gloucester barracks until the review is complete?”
“Our most critical supply chains are those that are directly linked to our national security. From autonomous vehicles to blast protection, British small and medium-sized enterprises are the vital link in the supply chain, ensuring that our armed forces have the capabilities to face down our adversaries. The Government have said that the Defence Office for Small Business Growth has an important role to play in supporting the sector, so how is the Minister co-ordinating with the office? If I am a defence SME, how will it help me?”
“I just want an answer! Defence SMEs have said that the delay of the defence investment plan caused great uncertainty and disruption to the sector. In addition, they are completely confused by this Government’s endless offices, initiatives and quangos. Will the Minister commit—if he is still in position in a few weeks’ time—to providing more certainty to such an important sector?”
“Finally, on the measures relating to LLPs, which the Minister discussed at the end of his remarks, page 3 of the explanatory memorandum states that these regulations are required because legislation was brought forward and passed in error by the Government last year, before adequate “Companies House systems had been developed”. I understand that the Government intend to bring the service requirement back, so when does the Minister expect Companies House to have the systems up and running so that they can process what they originally intended to last year? When will the reinstating regulations be laid before the House?”
“The Minister will be aware of that challenge from Withers, so I wonder what his response is to that specific challenge and concern. Secondly, the regulations seek to introduce a requirement in most cases for the provision of a replacement address for individuals who submit a suppression application to remove their home address from the register of overseas entities. Can the Minister clarify whether those who have already successfully secured suppression of their home address from the public register will now be required to provide a replacement address, and whether it will be retrospective? If so, will they be informed, how will they be informed and what is the timeline for that information to be provided?”
“First, he said that the regulations remove the requirement to provide trust names for applications looking to access unpublished information through the trust disclosure service. Paragraph 5.3 of the explanatory memorandum states that that is because many applicants have been found “unlikely to have this information”, resulting in their request being rejected. The Minister said that just moments ago. Can he therefore tell us how many applications have been made to the trust disclosure service since it was launched in August 2025? How many were rejected for that reason? That would help us understand the basis for the regulatory changes today. By lowering the bar for applications and applicants, Withers law firm has warned that the change could open the door to speculative fishing expeditions.”
“It is a pleasure to serve on the Committee and to see you in the Chair, Mr Efford, and of course to see the Minister. I refer Committee members to my entry in the Register of Members’ Financial Interests, particularly my prior career in asset management, which involves some of the structures we are debating today. I thank the Minister for providing such a thorough and clear explanation of the Government’s intentions with the regulations before us today. Whenever we debate regulations, we should always remember that it is essentially a balancing act—in this case between privacy in business and ensuring fairness, governance and transparency. Those aims are not mutually exclusive. It is our job to ensure that we get that balance right as often as we can. I have a couple of questions for the Minister.”
“The Government’s strategic defence review recommended an increase in the Army Reserve by 20%, but at the very same time the Government are closing Grantham’s Prince William of Gloucester barracks, which trains 70% of all Army reservists in the country. Will the Minister review that decision so that we have the capacity to train new Army reservist recruits?”
“The Government’s industrial strategy rightly states that improving skills in the construction sector is essential to keeping our country building. In fact, on page 44, there is a commitment to invest “£625 million to train…60,000 more skilled workers”. It has been one year since publication, so how many more skilled workers have entered the construction workforce as a result of that commitment?”
“I am grateful for the update on the Minister’s tiling skills, but I did not hear a number showing how he is making progress on the £625 million commitment. Perhaps he can write to me on how they are making progress. One of the existing schemes that supports training is the Construction Industry Training Board, but many industry leaders believe that it is no longer working or delivering. Construction firms are facing significant bills as a direct result of the levy, all while the CITB is reducing training provision. What is the Minister’s view of the CITB, and has he engaged with the construction industry to discuss it?”
“That is adopting one of the key provisions of the Conservatives’ cheap power plan, so I very much welcome that, but why wait until 2028, and why stop there? The Secretary of State could go further and adopt the plan in full, ending the carbon tax and green levies right now, as well as scrapping the 78% tax on North sea oil and gas companies. Those pragmatic and sensible steps are actionable right now, today. If he does those things, he will have our full support.”
“Just this week, the International Monetary Fund has expressed concern about the UK economy, saying that we are the most exposed of all major advanced economies, so can the Secretary of State provide clarity to the markets this morning about how this will be paid for? High energy costs for British businesses did not start with the conflict in Iran. We all know that energy prices have been far too high for far too long, and we now have the highest industrial energy prices in the whole G7. We should look at the root of the issue at hand: the structural energy challenges that we face as a country. I am pleased that in the regulatory consultation launched today the Government have committed to the removal of carbon price support from April 2028.”
“Pubs, restaurants, farmers and retailers also face energy cost challenges, and innovative companies such as OpenAI have halted planned multibillion-pound investments in our country. What action will the Government take to address those businesses’ concerns? Secondly, although businesses are being told today that they will be supported and that their energy bills will be reduced, no relief will actually come their way until next year, so what plan is there to provide a more timely relief for businesses who have to pay their energy bills right now? Finally, I am not clear on how this one-off additional payment next year will be funded.”