Committee publication · Correspondence · 6 January 2026
Letter from the Secretary of State relating to the work of the Department, 19 December 2025
Summary
Secretary of State Peter Kyle responds to the Business and Trade Committee's December letter, addressing eight topics: JLR supply chain monitoring, government support criteria, women in finance, procurement, steel strategy publication timeline, export services restructuring, employment rights reforms, and modern slavery act review. Kyle confirms UKEF's 2024-25 impact (70,000 jobs, £5.4bn GDP contribution), outlines the new Business Growth Service for SMEs, and commits to detailed consultation on employment status reform in 2026.
Key findings
- Government cannot directly track JLR Tier 2 and 3 suppliers due to commercial sensitivity but monitors through industry bodies; UKEF asks exporters about UK supply chain footprint but resists hard ringfencing of loans as it would reduce product attractiveness
- UKEF supported up to 70,000 jobs and £5.4 billion GDP in 2024-25; 99% of tens of thousands of supply chain businesses benefiting over five years are SMEs
- DBT's Investing in Women Code shows female and ethnic minority-led business investment could increase UK equity investment by up to 13%; Start Up Loans programme delivered over 122,000 loans (40% to female founders) totalling £1.2 billion since 2012
- Steel strategy will be published in the new year following changing global trade landscape; export services restructuring reduces staff but maintains support offer through new Business Growth Service and technology-enabled delivery
- Government committing to detailed consultation on employment status/bogus self-employment in 2026; Fair Work Agency launching April 2026 with dedicated 'hidden economy' team; Home Office to strengthen Modern Slavery Act section 54 Transparency in Supply Chains regime informed by Responsible Business Conduct review
Tone
ProceduralTopics
Key actors
Peter Kyle MP, Liam Byrne MP, UK Export Finance (UKEF), Department for Business and Trade (DBT), Society of Motor Manufacturers, Welsh Automotive Forum, British Business Bank, Home Office
Notable line
“We are reducing staff numbers; we are not reducing our offer of support.”
Key Quotes
“We are reducing staff numbers; we are not reducing our offer of support.”
“Government is not able to directly track or monitor individual Tier 2 and 3 suppliers.”
“In 2024-25 alone UKEF supported up to 70,000 jobs and contributed up to £5.4 billion to GDP, including over 30,000 jobs and over £2 billion indirectly through the supply chain.”
“The Code's 2025 report found that investing in viable female and ethnic minority-led businesses could increase the annual value of UK equity investment by up to 13%.”
“We need to consult in detail on any potential changes, to account for the full range of today's employment relationships and to get the changes right.”
“A s I stated in the session, we would welcome representations from the Committee regarding specific changes we could make as part of the RBC review.”
Source · parliament.uk record ↗