Written questions by Morton.

With reference to p.12 of The UK’s Modern Industrial Strategy 2025 published on 23 June 2025, on what evidential basis his Department determined which business sectors have high potential.

Invest 2035 (published on GOV.UK in October 2024) identified 8 high-level 'growth driving' sectors (the IS-8): Advanced Manufacturing, Clean Energy Industries, Creative Industries, Defence, Digital and Technologies, Financial Services, Life Sciences, and Professional and Business Services. Pages 18-20 of the Invest 2035 green paper outline the methodology for identifying the IS-8 sectors.The Technical Annex of the Modern Industrial Strategy 2025 (published on GOV.UK in June 2025) outlines the methodology for identifying the frontier industries within the IS-8 sectors.

What discussions he had with the Mayor of the West Midlands during the development of The UK’s Modern Industrial Strategy 2025, published on 23 June 2025.

The government is committed to working in partnership with Mayoral Strategic Authorities (MSAs) as part of delivering the Industrial Strategy's regional growth objective. We have engaged regularly with the West Midlands Combined Authority, at official and Mayoral level, to reflect and support its significant strengths in the Industrial Strategy and to coordinate local and national policies ahead of the publication of the West Midlands' forthcoming Local Growth Plan.Regular engagement at Ministerial and official level will continue as we implement the Industrial Strategy, including the delivery of Sector Plans, which the government has committed to implement in partnership with MSAs.

With reference to The UK’s Modern Industrial Strategy 2025 published on 23 June 2025, what plans he has to develop clusters of excellence in the West Midlands.

The Industrial Strategy highlights the West Midlands' strengths in all eight Industrial Strategy growth-driving sectors.The Strategy's UK-wide measures will make it quicker and easier to do business, including in the West Midlands. Specific Industrial Strategy interventions for the West Midlands include devolved funding from the £150m Creative Places Growth Fund, a co-created Professional and Business Services Hub and exploring a pilot initiative for an Electric Vehicles manufacturing cluster. The West Midlands will also receive £30m through the Local Innovation Partnerships Fund, a British Business Bank Cluster Champion to coordinate investment and a strategic partnership with the National Wealth Fund.

With reference to The UK’s Modern Industrial Strategy 2025, published on 23 June 2025, which sectors in the West Midlands he consulted with during the development of the Industrial Strategy.

The government engaged widely throughout the development of the Industrial Strategy, including with businesses, business representation organisations, and trade unions.In the West Midlands, this included roundtables and discussions with businesses, engagement with the Midlands Engine Partnership, written consultation on our Green Paper Invest 2035 and close working with the West Midlands Mayoral Strategic Authority to understand the strengths and barriers to growth in the region. Additionally, the department's regionally based teams sought input from SME businesses across a range of sectors.We will continue engaging widely throughout Industrial Strategy implementation.

What assessment he has made of the potential impact of energy costs on energy intensive industries.

Government is well aware of the issue of high industrial energy costs, and the challenges that poses for Energy Intensive Industries (EII). That is why we continue to offer support to electro-intensives through the EII compensation scheme and the Supercharger. We will also soon be consulting on an uplift of the Network Charges Compensation scheme. The recent Industrial Strategy also committed to consulting on the establishment of a new support scheme, British Industrial Competitiveness Scheme (BICS) which will exempt up to 7,000 businesses from some of policy costs included within electricity bills.

What steps his Department is taking to help reduce industrial electricity prices.

Government is well aware of the issue of high industrial energy costs, and the challenges that poses for Energy Intensive Industries (EII). That is why we continue to offer support to electro-intensives through the EII compensation scheme and the Supercharger. We will also soon be consulting on an uplift of the Network Charges Compensation scheme. The recent Industrial Strategy also committed to consulting on the establishment of a new support scheme, British Industrial Competitiveness Scheme (BICS) which will exempt up to 7,000 businesses from some of policy costs included within electricity bills.

What recent discussions he has had with businesses on the S&P Global Flash UK PMI.

Details of the meetings held by Ministers of the Department for Business and Trade are available on transparency pages of gov.uk and are released as part of the Government’s transparency agenda.

With reference to the UK’s Modern Industrial Strategy 2025, published on 23 June 2025, if he will provide a breakdown of where he plans for the 41,000 new homes in the West Midlands to be built; and what discussions he has had with the Secretary of State for Housing, Communities and Local Government on this matter.

In setting out how the Government will strengthen connections between and within city regions and clusters, the Industrial Strategy confirmed our commitment to delivering and maximising the growth benefits of HS2. The Industrial Strategy referenced independent research by Arcadis, conducted on behalf of HS2 Ltd, that suggests HS2 could lead to 41,000 new homes in the West Midlands. The source can be found at https://www.arcadis.com/en-gb/projects/europe/united-kingdom/hs2-impact-study.The department has worked closely with the Ministry of Housing, Communities and Local Government during the development of the Industrial Strategy and will continue to do so.

What assessment he made of the potential impact of delaying the implementation of the Employment Rights Bill’s provisions on unfair dismissal protections on levels of business confidence.

There is no delay to implementation. On 1 July the Government published “Implementing the Employment Rights Bill: Roadmap”. It provides clarity for employers and workers on when Government will consult on the implementation of Bill measures, and when measures will take effect. Feedback from businesses is that this clarity has improved confidence. The Roadmap sets out our initial view that day one unfair dismissal protections will take effect in 2027, after regulations have been made and the Advisory, Conciliation and Arbitration Service has considered to what extent , to reflect day one rights in the Code of Practice on disciplinary and grievance procedures.

What assessment he has made of the potential impact of the Employment Rights Bill on (a) average wages and (b) inflation.

My department has published a set of Impact Assessments that provide a comprehensive analysis on the potential impact of the Employment Rights Bill. This analysis includes con-sideration of impacts on wages and macro-economic impacts. This analysis is available at: https://www.gov.uk/guidance/employment-rights-bill-impact-assessments This represents the best estimate for the likely impacts, including on wages and the wider economy, given the current stage of policy development. We are refining our analysis as policy development continues, working closely with external experts, businesses and trade unions.

What steps his Department is taking to support UK companies unable to secure insurance coverage for business operations in Ukraine.

My department works closely with businesses to understand the needs of UK companies wishing to operate in Ukraine. Support is available on https://www.gov.uk/government/collections/support-for-uk-businesses-helping-to-rebuild-ukraine, which references potential options for insurance. UK Export Finance (UKEF) continues to provide risk insurance for UK exporters trading with Ukraine.

What assessment he has made of the potential impact of the trade deal with India on UK ceramics manufacturers.

The Department recognises the significant challenges faced by energy-intensive industries like ceramics, including rising global energy costs, unfair trading practices, and carbon leakage. We are taking action to protect these industries, including through trade defence measures against dumping and subsidisation. The UK-India FTA also includes a bilateral safeguard mechanism, allowing the UK to suspend or increase tariff concessions if the industry is facing injury. Over 93% of Indian ceramics entered the UK tariff-free in 2024 whilst the remaining 7% paid a tariff. 11 of the 43 ceramics tariff lines are dutiable and face a simple average tariff of 4%.

What assessment he has made of the (a) resilience of the clay brick and rooftile industry and (b) potential impact of (i) energy costs and (ii) the UK Emissions Trading Scheme on that industry.

The department works closely with the Construction Leadership Council’s Material Supply Chain Group. Their most recent statement, on 23 April, noted the materials supply chain as functioning well and product availability generally good. We recognise high energy prices are a key challenge for businesses, and our Clean Power 2030 target is key to long-term sustainable price reductions. Our modern Industrial Strategy announced a new British Industrial Competitiveness Scheme that will reduce electricity costs and support thousands of energy intensive businesses. UK Emissions Trading Scheme (UK ETS) participants are provided with free allocations to mitigate the risk of carbon leakage and incentivise emissions reduction. The UK ETS Authority is reviewing Free Allocation policy and has guaranteed current free allocation levels until 2027.

What steps is he taking to include (a) ceramics and (b) manufacturers in the Industrial Strategy.

The Advanced Manufacturing Sector Plan, part of the Industrial Strategy, outlines government support for the sector, including skills, energy, and regulations. Ceramics has been identified in the Industrial Strategy as part of our initial list of inputs from foundational industries that are important to unlocking growth in our priority sectors. Some ceramics businesses will benefit from increased network charge compensation, priced at around £10/MWh. Additionally, the new British Industrial Competitiveness Scheme will cut electricity costs by up to 25% for eligible electricity-intensive businesses including foundational manufacturing industries, such as ceramics. We will consult on the design and eligibility shortly, with a review point in 2030.

Whether (a) officials and (b) Ministers participated at the UK Real Estate Investment and Infrastructure Forum event between 20 and 22 May 2025.

The Minister for Investment and officials from the Department for Business and Trade have participated at the UK Real Estate Investment and Infrastructure Forum (UKREiiF) event that took place between 20 and 22 May 2025.

What steps his Department is taking to work with (a) international partners and (b) export credit agencies to develop (i) insurance solutions and (ii) support for UK businesses engaging in post-conflict (A) reconstruction and (B) commerce in Ukraine.

HMG continues to collaborate with G7+ partners, International Financial Institutions and the global insurance industry, to strengthen availability and access to insurance for Ukraine following delivery of the 2023 London Framework for War Risk Insurance. We assist UK businesses engaged in Ukraine's post conflict recovery by supporting inward and outward business delegations, delivering webinars, producing dedicated business guides, issuing regular newsletters and supporting business partnerships.UK Export Finance has financed a number of projects in Ukraine and is working with other ECAs to ensure a joined-up approach in meeting the immediate and post-conflict needs of Ukraine.

What assessment his Department has made of the potential impact of the availability of commercial insurance for UK companies seeking to operate in Ukraine on British trade and investment in the region.

Limited availability of insurance to operate in Ukraine is a market access barrier for businesses to export, invest or operate in Ukraine. The expertise and global reputation of the London Insurance sector has continued to mobilise international support to increase risk coverage for real sector and trade finance under the 2023 London Conference Framework for War Risk Insurance.In March, Minister Doughty and I joined an international roundtable hosted by Lloyds of London to maintain momentum and encourage insurance companies to reconsider the Ukrainian market. UK Export Finance (UKEF) continues to provide risk insurance for UK exporters trading with Ukraine.

With reference to the Minister of State for Europe, North America and Overseas Territories' Oral Statement of 15 May 2025 on Sanctions Implementation and Enforcement, Official Report, columns 524-526, what role the Office of Trade Sanctions Implementation will play in any proposed changes to the sanctions implementation and enforcement framework.

The Office of Trade Sanctions Implementation (OTSI) was established on 10th October 2024 with new powers to strengthen the implementation and enforcement of trade sanctions. OTSI is working with the Foreign, Commonwealth and Development Office and other relevant departments to take forward the conclusions of the cross-Government review of sanctions implementation and enforcement announced by the Minister for Europe on 15th May 2025.

What steps is he taking to support start-up companies in (a) the West Midlands and (b) Aldridge-Brownhills constituency.

Last year, the Business Secretary announced a new Business Growth Service, which will make it easier for businesses including start-up companies across the West Midlands and the UK to get support and advice to grow, export and thrive.The West Midlands Growth Hub is where small and medium-sized businesses across Aldridge-Brownhill and the West Midlands can obtain specialist advice on scaling up, accessing new markets, and receiving financial support through the British Business Bank.Businesses can also access other Government programmes such as the Business Support Service, Help to Grow: Management, the UK Export Academy, International Trade Advisors and the Export Support Service.

What assessment he has made of the potential impact of the high growth accelerator programme in the West Midlands on the levels of investment secured by SMEs in Aldridge-Brownhills constituency.

The High Growth Accelerator is a great example of locally led business growth delivered by the West Midlands Combined Authority through Business Growth West Midlands. Last year’s pilot saw fifty SMEs on track to boost investment and turnover by £20m with the West Midlands. The High Growth Accelerator continues into its second year, and the Department will be working closely with the Combined Authority to support its outcomes. DBT will be launching its New Business Growth Service which will make it easier and quicker for SMEs to find government advice and support and will be an integral part of the SME Strategy that will be published in 2025.