← Back to House of Commons Debates
Reducing Costs for Businesses
11 January 2022
Lead MP
Jonathan Reynolds
Debate Type
General Debate
Tags
EconomyTaxationEnergyBusiness & Trade
Other Contributors: 36
At a Glance
Jonathan Reynolds raised concerns about reducing costs for businesses in the House of Commons. Other MPs contributed to the debate.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
Opened the debate
The motion recognises the strain that businesses are under following a difficult Christmas period and two years of disruption during the COVID-19 outbreak, noting challenges in some sectors such as high energy costs, inflation, low growth, and higher taxes due to government failures. It calls on the Government to reform business rates, offer loan flexibility, and implement a contingency fund for high energy costs.
Nigel Evans
Party not specified
Constituency not specified
Asked for time restraint from Front Benches to allow Back Benchers ample speaking time, suggesting three-minute limits.
Jonathan Reynolds
Lab Co-op
Stalybridge and Hyde
Highlighted the toll of the recent trading environment on businesses and workers' mental health. Acknowledged the Government's shift in offering support after initial reluctance. Noted medium-term pressures for businesses, including energy-intensive sectors struggling with high costs.
Janet Daby
Lab
Lewisham East
Intervened to stress that rising energy prices are an existential crisis for small businesses in the hospitality sector and urged immediate support for paying energy bills.
Newcastle upon Tyne North
Described visits to local businesses highlighting challenges such as high energy bills, inflation, and upcoming national insurance increases. Agreed with the need for more government support.
Lee Rowley
Con
Rotherham
Agrees with the hon. Member for Stalybridge and Hyde that this has been an extremely difficult time for businesses due to restrictions, rising energy costs, supply chain shortages, and inflation. Acknowledges the fortitude of businesses during the pandemic. Highlights substantial Government interventions, including hundreds of billions of pounds in support, a business rates relief package, reduced VAT rate, £1 billion of support for affected businesses during the omicron wave, over £79 billion of loan schemes, and measures to provide flexibility for repayments like 'Pay as you grow'. Emphasises that these actions have been recognised by the IMF. Criticises Labour's plans as lacking detail and coherence. Discusses business rates reform, pointing out Labour's inconsistency in suggesting changes without providing details. Defends the Government's economic plan, citing figures such as 400,000 more people employed than before the pandemic. Acknowledges concerns about energy prices but asserts that supply chain adjustments are global issues and not solely due to UK policies.
Stephen Flynn
SNP
Aberdeen South
The SNP Member emphasised that the debate should address the impact of Brexit on businesses in Scotland and throughout the UK, highlighting challenges such as a 4% hit to the economy, trade deficits, labour shortages, and difficulties due to leaving the EU single market.
Chris Grayling
Con
Epsom and Ewell
The Conservative Member defended the Government's economic response during the pandemic, noting significant job creation despite initial fears of high unemployment. He advocated for lifting current restrictions on businesses and continued exploitation of North Sea gas reserves.
Kevin Hollinrake
Con
Thirsk and Malton
The Conservative Member challenged the SNP to outline future economic growth strategies, noting Scotland's lower pre-pandemic economic growth compared to the rest of the UK.
This speaker set a three-minute time limit on speeches, indicating procedural management rather than debate contribution.
Jonathan Reynolds
Lab Co-op
Stalybridge and Hyde
The Labour Member highlighted the impact of high energy costs on businesses and industries like steel manufacturing, advocating for a windfall tax to support struggling firms. He also criticised procurement decisions that favoured foreign suppliers over UK companies during the pandemic.
Nia Griffith
Lab
Llanelli
The Labour Member emphasised the importance of constructive partnership between Government and business, advocating for a comprehensive industrial strategy to support industry. She highlighted issues with high energy costs affecting steel production and advocated for more domestic procurement.
Suzanne Webb
Con
Stourbridge
Ms. Webb criticises the Labour party for opposing government measures without offering their own costed plan. She highlights the creation of over a million businesses since 2010 and points to economic growth in the UK as evidence that the Conservative Government's management of the pandemic has been effective.
Holly Lynch
Lab
Halifax
Ms. Lynch discusses the challenges faced by businesses in Halifax due to high business rates, citing Harveys department store and Play Palace soft play centre as examples. She also mentions issues arising from Brexit such as increased costs for 4x4 Overlander Ltd.
Gareth Davies
Con
Grantham and Bourne
Mr. Davies praises the Government's support for businesses, highlighting specific figures like £154 billion in business support nationally and £144 million in loan support in his constituency. He criticises Labour's approach to debt and emphasises predicted UK growth.
Marie Rimmer
Lab
St Helens South and Whiston
Ms. Rimmer focuses on the energy crisis facing businesses like Pilkington glass, noting a significant surge in energy bills from £540,000 to over £8 million per month since April 2020. She calls for urgent Government support and partnership working.
Julie Marson
Con
Emphasises the support provided by the Government to businesses during challenging times, citing figures of £407 billion in total support and highlighting initiatives such as the super-deduction aimed at increasing investment. She also criticises Labour's approach to economic recovery.
Naseem Shah
Lab
Bradford West
Outlines the negative impact of lockdowns, local restrictions, and Brexit on businesses in her constituency, referencing a 94% hit to retail, hospitality and leisure sectors. She calls for increased support measures like freezing business rates and increasing small business rate relief.
Kevin Hollinrake
Con
Thirsk and Malton
Defends the Government's economic policies, arguing that issues such as high inflation and energy costs are international rather than a result of domestic policy. He criticises the Labour opposition for their proposed reforms to business rates.
Despite challenges in his constituency, the Government have provided significant financial aid to businesses, including £407 billion of support overall. He praises the council for successfully delivering funds despite initial delays and emphasises the importance of procurement policies that benefit domestic industries. Additionally, he highlights the need to ensure established SMEs do not miss out on funding due to high thresholds.
Emma Hardy
Lab
Kingston upon Hull West and Haltemprice
The speaker acknowledges the efforts of local businesses in her constituency and criticises wasteful government spending. She notes that many sectors, such as the coach industry, have been excluded from support. She also advocates for targeted assistance to address rising energy costs affecting small businesses.
Flick Drummond
Con
Meon Valley
Praises the resilience of businesses in her constituency and highlights the effectiveness of government support during the pandemic. She notes that while global inflation pressures exist, UK unemployment is lower compared to other economies like those in the eurozone. Emphasises the strength of the economy prior to the pandemic and ongoing job creation efforts.
Joanna Cherry
SNP
Edinburgh South West
Supports parts of the motion but criticises the omission of Brexit's impact on businesses, which she argues is a significant factor in current economic strain. She mentions specific examples from her constituency affected by post-Brexit bureaucracy and tariffs.
Simon Baynes
Con
Clwyd South
Highlights the support provided to businesses through various government initiatives such as extended recovery loan schemes, additional discretionary funding for local authorities, and reduced business rates. He praises these measures for aiding economic growth in his constituency.
Stephen Kinnock
Lab
Aberavon
Outlines Labour's plan to support businesses by creating new enterprises, boosting productivity, and providing a contingency fund for struggling firms. Criticises the government for relying on countries with unclear interests and emphasises the need for a resilient economy focused on manufacturing.
Toby Perkins
Lab
Chesterfield
The pandemic has severely impacted various sectors, with the hospitality sector employing nearly 3 million people and contributing £66 billion in revenue. Despite not being forcibly closed before Christmas, many businesses saw a significant reduction in trade due to cancellations. The Labour party advocates for reforming business rates to support affected industries.
Government support during the pandemic, including £70 billion in the job retention scheme, has been crucial for saving businesses and jobs. Meeting with local businesses provides clarity on their needs, contrasting poorly attended Select Committee meetings by Labour members who have criticised business support.
Mary Foy
Lab
City of Durham
Durham's high streets are home to independent shops that need support due to rising vacancy rates and sky-high business rates. The Labour party calls for immediate cuts in business rates funded by a digital services tax rise, advocating for the abolition of the outdated system when they return to power.
Support for businesses has been significant during the pandemic, with grants and schemes aiding economic recovery. The ceramics sector in Stoke-on-Trent has seen a doubling of GVA since 2010, and recent funding secured through UKRI’s strength in places fund will further support energy-intensive industries.
Matt Western
Lab
Warwick and Leamington
Energy prices are 87% higher than EU competitors, leading to a significant cost disadvantage for UK small businesses. Business rates need reform as they contribute to high street decline; freezing them could save £4,000 per small shop or factory. Brexit adds complexities like navigating customs and VAT regimes, causing staff shortages and costs. The Conservatives have become the party of burden rather than business. Labour supports pro-business policies.
Praises businesses in Peterborough for resilience and employment growth despite challenges. Acknowledges Government support during pandemic, with £75 million invested in constituency. Emphasises positive outlook for post-pandemic economic recovery, highlighting high business start-up rates and future investment plans including a new STEM-focused university.
Highlights challenges of repaying Government loans from COVID-19 loan schemes; interest covered initially but businesses struggle with capital repayments amid post-pandemic recovery. Advocates for flexible repayment options, like pay-as-you-earn style, to ease financial burden on businesses recovering from pandemic and Brexit impacts.
Sarah Champion
Lab
Rotherham
Critiques the Government's handling of rising business costs, high taxes, inflation, and supply chain issues. Emphasises the need for a contingency fund to support firms through hard times, proposes freezing business rates, replacing them with a fairer system, and advocating for 'buy British' policies.
Shares case of a local family-run company facing an energy tariff increase of £30,000 (497% rise). Discusses impact on employment and the broader economy when businesses suffer financially. Urges Government to provide more comprehensive support for businesses struggling with rising costs.
Geraint Davies
Lab
Carmarthen West and South Pembrokeshire
The Government's claims about job creation are misleading due to their exclusion of self-employed individuals. The Chancellor imposed £40 billion worth of tax last year, which was unprecedented and unrelated to the pandemic according to the Institute for Fiscal Studies. Labour produced a 40% increase in GDP over ten years prior to the financial crisis and invested heavily in public services such as education and health care.
Seema Malhotra
Lab
Feltham and Heston
British business needs stability, which has been absent from this Government. The Chancellor's trip abroad delayed needed actions for businesses during the crucial period before Christmas. The Conservative party is now the high-tax party due to low growth going into the pandemic. Labour calls for furlough-style employment support, help for self-employed individuals, business loans and urgent commercial rent debt assistance. We need a proper industrial strategy with leadership and direction that guides serious investment rather than an incoherent plan full of slogans.
Paul Scully
Con
Horsham
Supporting entrepreneurs during the pandemic was crucial, leading to insolvencies at a 40-year low. The Labour party's sudden claim as 'the party of business' is ironic considering their lack of scrutiny on the Department and portrayal of employers negatively in this House. Since 2010, there have been 50,000 more companies formed; these are essential for pivoting to a strong recovery due to the solid fundamentals behind the UK economy.
▸
Assessment & feedback
Summary accuracy
About House of Commons Debates
House of Commons debates take place in the main chamber of the House of Commons. These debates cover a wide range of topics including government policy, legislation, and current affairs. MPs from all parties can participate, question ministers, and hold the government accountable for its decisions.