'A GIMMICK!' | Labour Business Secretary GRILLED over Rachel Reeves' summer saving scheme measures

Added: 2026-05-22

[00:00:00]Well, we're going to start with the news that pressure is mounting on the chancellor to permanently cut VAT on the hospitality sector.

[00:00:06]>> Yes, it comes as the government announced temporary VAT reductions on summer attractions. This is as part of a 1.8 billion pound package to bring financial ease to households amid the Iran war.

[00:00:17]>> I can today announce a temporary cut in the rate of VAT on summer attractions from 20% to 5% over the summer holidays.

[00:00:27]Well, the new measure will cover fairs, zoos, museums, as well as children's tickets for cinemas, concerts, and soft play areas.

[00:00:35]>> Well, Labour are also planning a 1 billion pound stealth tax on airlines, raising the cost of family holidays. So, >> will the government ever get a grip of the cost of living crisis? Is this the way to do it?

[00:00:47]>> Well, let's speak now to Secretary of State for Business and Trade, Peter Carl, who joins us now. Very good morning to you, Mr. Kyle. Can we start with this great British summer savings scheme that the chancellor announced yesterday? We're just talking about it there. 1.8 billion pounds this package is worth. Uh but it's essentially5 off entry for theme parks, a cheaper peanuts, cheaper biscuits, cheaper chocolate, nothing more than a gimmick.

[00:01:10]Families want real savings. These are people who are struggling to pay their energy bills.

[00:01:17]>> Yeah. Just take take this in the spirit that it's intended. We're doing a lot of interventions into the economy. We've taken steps that I've been on your show many times in the past talking about lowering energy costs and and so forth uh and other interventions that that we've made. We've also extended, don't forget, the uh the f the fuel charge uh uh uh moratorum into the future now. So, we are keeping down the costs of the things that are really impacting motorists and consumers around the country. But we wanted to do something very specific over the summer. But those summer months when the kids are on school holidays are a really important moment for families and we want families to have fun together. We want them to be able to go to seaside towns, to museums, to the cinema, to amusement parks and it means quite a lot for some of those families. So to be able to go, for example, to an amusement park will cost 20 quid less. If you go there on bus, uh it won't cost anything for the kids to travel. If you have lunch afterwards, the kids will have a couple of quid off the meal. This means that some families will be able to go and have a great day out where previously they couldn't. But it also means if you're going to a seaside town, you'll be able to do more things when you're there. So, it's good for business and it's good for families.

[00:02:25]It's just good for, you know, kids to have great time with their parents and parents have a great time with their kids and the government is on their side. But take this as it is intended.

[00:02:36]The only thing we're doing for cost of living.

[00:02:39]>> I've got to be honest. You don't sound convinced. Um because as you say, take it in the spirit it's intended, which is fine if we've got plenty of money to play with. You know, this is going to help a small number of people do a small number of things at the cost of 1.8 billion pounds at a time we haven't got any money.

[00:03:00]This is funded by having a by by closing a loophole where multinational companies can declare certain things happening outside of Britain which is a loophole that's been around for too long. So this is a fully funded measure. It's a singular measure and we're using that in this way. We also yesterday announced that we're reducing the cost of red diesel. So farming will get cheaper for farmers. That of course makes makes the pressure on food less. We extended a moratorium on uh fuel uh charge uh f fuels tax charge rises. So all these things we announced yesterday are going to have a big impact. Uh we're watching very closely how we intervene. Also uh I've done some pretty bold things with the economy this week as well. I brought step took steps towards bringing British steel into public ownership. I've announced a package of350 million pounds to support the chemical sector to increase resilience as as our country.

[00:03:53]Those chemical firms are in key parts of our country and I want those communities to feel safe and secure and then right after this interview I'm going to go to Stoke on Trent to the potteries to announce a package for ceramic sector of 120 million pounds to help modernize that sector make sure it is fit for the future uh and those communities and the workers who depend on those jobs uh will have security into the future knowing that they're working for more profitable companies uh as we go forward. all of these things that we're doing. Just this week, my net migration fell by 2/3 and asylum hotel use fell by 2/3 and we got to the top of the G7 charts on growth.

[00:04:31]So, we're doing some pretty big bold things right through the economy at the moment.

[00:04:35]>> Hello, I'm Bev Turner. Now, it can feel like the money in our bank accounts at the moment does not keep up with the cost of living. And maybe there's a solution. I'm here today with the CEO of Tally Money, uh, Cameron Perry. Cameron, what is Tally Money?

[00:04:52]>> Well, Bev, with Tally Money, you get a current account and a debit card, but instead of pounds, you use milligs of gold as your everyday money.

[00:05:00]>> So, why gold?

[00:05:03]>> Gold traditionally is a great store of value. It has on average gone up at over 11% peranom for the last 25 years against the pound. It's tripled in value in the last decade. And in the last two years alone, it's increased by 50% against the pound. banks, savings products just can't compete with that level of growth.

[00:05:23]>> But this isn't just about gold. This is a a currency that you guys have created at Tally Money. Explain it to me as though I'm an idiot.

[00:05:31]>> So, look, people need to be able to hold their earnings and build their savings in a money that retains its value and remains in their legal control and remains theirs to access away from government control.

[00:05:43]>> Great. You had me not exposed to government control.

[00:05:46]>> You should feel safe and happy with your money. You should have peace of mind the more money you see in your bank balance and that's the type of thing we're trying to deliver and give people choice in the type of money they get to use every day.

[00:05:57]>> Brilliant. Thank you so much Cameron.

[00:05:59]Thank you.

[00:06:09]>> But I just wonder if some of it is a bit sticking plaster. I mean I know you've got a comment in your press release from the the boss of Ceramics UK. We've been we've been covering this here on on GBGs and we do know that Ceramics UK I mean yes they are welcoming this extra money this extra investment but they keep saying the biggest problem they are facing in the industry where several manufacturers have have closed down is energy costs. So again, it's back to that issue of why not do something fundamental on this, like cut the green levies, help improve on energy costs, which is a a longerterm sustainable move for something like Ceramics UK, rather than um just filling a gap with tax payers money.

[00:06:54]Well, I've got some good news for you and your viewers, and it's great that you've been campaigning and reporting on ceramics because not enough of the media does cover the ceramic sector. It's a really important uh sector for particularly for those communities. So you'll be pleased to know that60 million pounds of the money I'm announcing today will be invested in modernizing the sector so they can have a more profitable future. Another60 million pounds of it is going to be going to support the revenue of those companies through the transition and yes that includes helping with the cost of energy. I've also announced two other schemes in the past. won the supercharger program for high energyintensive industries, but also the Bick scheme, the British industrial competitiveness scheme for 10,000 manufacturing companies. That's going to reduce the cost of electricity by 25% and 4,000 of those businesses are in the uh foundational sectors such as chemicals, such as steel, such as glass.

[00:07:50]so that it lowers the cost of those uh supply chains which of course keeps inflation down but also lowers the cost of products and services that ends up in businesses and in consumers hands. All of these things need to be seen in the round and interventions today are one more additional additional announcement that builds on top of the big programs I've already announced.

[00:08:11]>> What do you say to those claiming that decarbonization is forcing out British industry? Do you find that your department, the business department and net zero department ever come to blows over this? And what what comes first? Is it uh jobs or is it climate targets?

[00:08:27]What's the priority?

[00:08:30]>> Actually, it's a really good question because you know government departments interact and sometimes don't share the same priorities. It's not just business and uh Des the climate change department and energy department. Uh all departments are always in in tension. uh and that's why we have the system that we do with the prime minister at the top chairing those key committees. So we deal with these tensions. Um when it comes to uh issues between climate change and business uh industry and the business community tell us that the decarbonization agenda is the biggest economic opportunity that we face. So if you look at the moment about the electric cars, I want our British automotive sector to be there to capture the global market for EVs and I need to make sure that we are equipped to do so.

[00:09:17]When it comes to uh lowcarbon energy, uh I have backed the research and development for Rolls-Royce for the small modular reactor program. I believe because of the partnership between government and Rolls-Royce that we will get first to market and we've commissioned several of these reactors uh our ourselves here in the UK and that will be a global market probably in the region of a trillion dollars. Uh and if we get first to market we will export them around the world and I've already been to the Czech Republic and to Sweden to try and help Rolls-Royce secure a big market for their products. So this would create a huge opportunity for Rolls-Royce and in the Derby area and in the uh in in surround right around the country with the supply chains that would go into a new product like that.

[00:10:02]These are the opportunities that lie before us. But we can only grab them if you have a government that is willing to be an active partner to seizing those opportunities and in me as Secretary of State and this and we as a Labor government they have that active assertive partner. Just before we let you go this morning, Peter Carl, can we just ask about your friend where's streeting? Are you missing him around the cabinet table?

[00:10:27]>> Uh, actually I do miss him around the cabinet table. Yeah, not just a friend.

[00:10:32]Uh, he is a good colleague. Uh, and we've been together for we've been together in various situations including sharing an office for a long time. But look, I'm not his spokesperson. I'm not here to speak on behalf of him. I'm here to speak on behalf of government. I've made my choices. He has made his He will always be available to speak to you. I'm sure.

[00:10:52]>> I'm sure he will. Peter, >> he'll be back in a cabinet position. Who knows?

[00:10:55]>> Yeah, Minister, good to talk to you this morning. Thank you very much indeed.

[00:10:59]>> You too. You too.

[00:11:01]>> Let us know what you think.

[00:11:01]Jubilee.com/son.

[00:11:03]>> He's charismatic, charming, determined.

[00:11:05]>> Well, you just sort of think, is that what you need at the top? I was I mean, just watching his performance. I'm watching performances more and more at the moment.

[00:11:11]>> Yeah, you are. And you s you s you sort of think >> was that what you need at the top? Would he be a possible contender?