← Back to House of Commons Debates
BUSINESS, INNOVATION AND SKILLS
15 March 2016
Lead MP
Rishi Sunak
Debate Type
General Debate
Tags
EconomyTaxationEmployment
Other Contributors: 89
At a Glance
Rishi Sunak raised concerns about business, innovation and skills in the House of Commons. A government minister responded. Other MPs also contributed.
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
My rural North Yorkshire constituency is home to many businesses with strong local roots but global aspirations. May I ask the Secretary of State what his Government are doing to help small and medium-sized companies become exporters?
Sajid Javid
Con
Britain is one of the top 10 places in the world in which to start and run a business. We are boosting skills, boosting productivity, raising the quantity and quality of apprenticeships in England, cutting tax and regulations and building stronger trading links with emerging markets.
Chris Leslie
Lab Co-op
How on earth are small and medium-sized businesses going to be competitive if, in 100 days’ time, they find that their access to those level playing field markets will be firmly thrown away and that that door will be shut in their face? What will the Secretary of State do to be much more vocal in highlighting the phenomenal risk to our businesses if we end up losing access to some of those important markets?
David Nuttall
Con
North West Durham
I have yet to speak to a businessman from a small or medium-sized enterprise who has said that what they want is more regulation, either from this place or the European Union. Does not my right hon. Friend agree that the thing that would most help small and medium-sized enterprises become more competitive both in this country and around the world is for this country to leave the European Union?
Rachael Maskell
Lab Co-op
York Central
Small and medium-sized enterprises in York are struggling to be competitive. With the cuts to local authorities, business rates are soaring 11%, and that is on top of the additional costs that SMEs are paying.
North Cotswolds
Is it not vital that my right hon. Friend’s target of 100,000 new businesses exporting by 2020 is met by lighting that spark in small and medium-sized businesses to export for the first time and, above all, to keep exporting?
Hannah Bardell
SNP
Livingston
I am sure that the Minister will agree that a big part of helping small and medium-sized businesses become more competitive is ensuring that there is access to a skilled workforce. In National Apprenticeship Week, the Young Women’s Trust has shown that some employment sectors are hardly welcoming any young women.
Callum McCaig
SNP
Glasgow North East
What steps he is taking to help businesses increase their exports. We are mobilising the whole of Government to improve the UK’s export performance. A refocused UKTI will be at the centre of a co-ordinated approach and relevant Departments will share their expertise to get British businesses exporting.
Richard Fuller
Con
North Bedfordshire
If the UK left the single market, my understanding is that the highest tariff that could be applied on UK manufactured goods would be the World Trade Organisation’s simple average most-favoured nation applied tariff, which for non-agricultural products is 4.19%. Can my right hon. Friend write to me to confirm that is correct?
Alex Cunningham
Lab Co-op
Stockton North
The Secretary of State’s word will do little for the 40 skilled staff of the Metabrasive steel foundry in Stillington in my constituency, which will close in May. So will he listen to the Materials Processing Institute and back its proposals for a materials catapult?
Amanda Milling
Con
Wyre Forest
Spartan Global Services in Cannock exports refurbished computers to businesses across the globe. Can my right hon. Friend outline what is being done to reduce barriers to exporting, and to encourage more businesses like Spartan to take up the opportunities that exports offer?
Margaret Ritchie
Social Democratic & Labour Party
South Down
Will the Secretary of State have immediate discussions with his Cabinet colleague in the Department for Environment, Food and Rural Affairs regarding the need to ensure the export of pork from both Britain and Northern Ireland to Taiwan?
Nigel Evans
Ind
Cannock Chase
We have a massive trade deficit with the European Union but the balance is positive with the rest of the world. We have just celebrated Commonwealth Day. A relatively small amount of our trade is with the Commonwealth.
Sajid Javid
Con
Stressed the importance of the Commonwealth for economic growth and highlighted that manufacturing jobs have increased since 2010, while also noting the UK’s growing trade surplus in services. He emphasised the role of Government policy in supporting a stable economy.
Steven Paterson
SNP
Asked about the steps taken by the UK Government to support manufacturing and mentioned that the SNP had boosted exports by 36% since 2007, launching a strategy for Scottish manufacturing.
Alison McGovern
Lab
Birkenhead
Questioned the effectiveness of the long-term economic plan, noting concerns about regional disparities in SME investment and the impact on alternative financial institutions. She also raised issues regarding lending to small businesses by both banks and peer-to-peer platforms.
Andrew Bridgen
Con
Asked what steps were being taken to ensure that expert advice was available for potential entrepreneurs starting their own business.
Stephen Metcalfe
Con
Asked about discussions with the Secretary of State for Culture, Media and Sport on improving broadband access for businesses. He also inquired specifically about BT’s performance in delivering these services.
Chi Onwurah
Lab
Newcastle upon Tyne Central
Critiqued the Government's claim of championing small business contributions, highlighting poor broadband access for many businesses and questioning whether recent rollouts were actually successful.
Richard Graham
Con
Asked about the UK’s balance of trade in services and raised concerns over potential vulnerability to leaving Europe, especially for sectors like insurance and investment management that rely on EU passports.
Barry Sheerman
Lab
Expressed concern over foreign takeover of British agritech companies and its impact on competitiveness. He also requested a meeting with the Secretary of State to discuss these issues.
Philip Hollobone
Con
Suggested that Britain's best future is outside the EU, where it can negotiate trade agreements with China, India, Brazil and others. He noted a £62 billion annual trade deficit with the EU.
George Kerevan
Lab
Asked about productivity in financial services compared to other countries and suggested that regulatory factors might be responsible for lower productivity.
Rehman Chishti
Con
unknown constituency
A constituent, Mr Clive Davison, raised a concern about the delay in having his faulty Hotpoint tumble dryer fixed. There is real risk of fire with such products and the Government needs to ensure that consumers like my constituent receive speedy assistance.
Mark Durkan
SNP
unknown constituency
The Minister's previous assurances regarding unsafe electrical goods now appear hollow given recent campaigning by Electrical Safety First and the Daily Mirror. The Consumer Rights Act needs to be reviewed to address these issues more effectively.
Yvonne Fovargue
Lab
unknown constituency
Despite the trumpeting of the Consumer Rights Act, most trading standards services have cut their staff by at least 40% since 2010. This raises concerns about how consumers can enforce these rights and how rogue traders can be brought to justice.
Debbie Abrahams
Lab
Oldham East and Saddleworth
The Department needs to take steps to help small businesses receive prompt payment from their customers. Recent National Audit Office reports show that four Departments were failing to meet the Government’s payment deadlines.
Anna Soubry
Con
unknown constituency
Late payment is a serious issue for small businesses, and the government is creating a small business commissioner to tackle this problem. Public sector contracts should also adhere to these rules against late payments to ensure fair treatment of micro-businesses.
Ian Lucas
Lab
unknown constituency
UK leaving the EU would place jobs in Wales and the rest of the UK at risk, given that automotive exports were worth £15 billion and aerospace exports amounted to £5.8 billion in 2014.
Gavin Robinson
DUP
Belfast East
Planes can cross borders without pesky border controls; the Minister has been a champion for Bombardier’s C Series aircraft, and she should continue to support UKTI in securing sales for this plane.
Kevin Brennan
Lab
unknown constituency
Europe's share of commercial aviation manufacturing has risen from 16% to 57% due to co-operation between France, Germany, Spain and the United Kingdom; this statistic provides a potent example for why it is in the UK’s long-term interest to remain in the EU.
Craig Tracey
Lab
North Warwickshire
In national apprenticeship week, we welcome the creation of over 2.6 million apprenticeships since May 2010, including 500,000 in the Midlands and 5,140 in North Warwickshire. The Universities UK report highlights the potential for new degree apprenticeships to meet employer needs.
Karl McCartney
Con
Lincoln
The Government’s investment in transport infrastructure and apprenticeships has delivered clear business benefits for Lincoln. Further investments, such as those previously discussed with the Chancellor of the Exchequer, could be announced in the upcoming Budget.
Oliver Dowden
Con
Hertsmere
The Department needs to make progress on regulating the sale of laser pens which can cause serious harm and injury. There is a need for tighter regulation to protect public safety.
Expressed concern about the illegal sale of laser pens to children and mentioned that the organisation is looking into changing legislation and contacting trading standards officers.
Oliver Dowden
Con
Hertsmere
Asked the Minister for an update on what the Government are doing to stop the marketing of laser pens as toys to children, citing a case in his constituency where a seven-year-old boy was almost blinded.
Discussed apprenticeship completion rates, noting that with increased standards and longer durations, there has been a slight drop to 69%. He proposed tying payments for training providers to completion rates.
Stephen Timms
Lab
East Ham
Asked about the impact of recent changes on apprenticeship completions and expressed concern that quantitative targets might be achieved at the expense of quality, with particular issues in London.
Congratulated the Government for increasing higher apprenticeships and urged them to go further and faster.
Gordon Marsden
Lab
Expressed worry about completion rates in London and highlighted issues like a 40% drop in leisure, travel and tourism apprenticeships since 2010. Emphasised the need to include women and service sector in achieving the apprenticeship target.
Paul Blomfield
Lab
Asked about plans for a consultation on closing the BIS office in Sheffield, and questioned the impact of moving jobs from Sheffield to London.
Announced that the Department is consulting staff and trade unions for 90 days before making a decision on potentially closing the office in Sheffield, aiming to avoid redundancies.
Paula Sherriff
Lab
Asked about broadband provision adequacy for SMEs, highlighting specific issues faced by constituents with slow internet speeds and requested a commitment to escalate the superfast broadband programme.
Reported on progress towards 80% of businesses having access to superfast broadband by 2017, acknowledged efforts made by communities to improve broadband coverage in their areas.
Lucy Allan
Con
Telford
Congratulations Telford businesses and colleges for boosting apprenticeships, with youth unemployment in the constituency falling dramatically.
Sajid Javid
Con
Birmingham, Hall Green
Acknowledged visits to Lucy Allan's constituency; praised local businesses, colleges, and training providers for their work on apprenticeships. Apprenticeship numbers in Telford are up by 120% over five years.
Angela Eagle
Lab
Wallasey
Questioned Sajid Javid's stance on the EU referendum, expressing concern about his lukewarm response and its impact on party unity. Highlighted a previous statement where he stated reluctance to campaign for remaining in the EU with enthusiasm.
Sajid Javid
Con
Birmingham, Hall Green
Responded to Angela Eagle's criticism by dismissing her comments and advising her to focus on speaking to her own boss about contributing positively to the debate.
Andrea Jenkyns
Con
Wakefield
Asked about steps being taken to ensure more people from diverse backgrounds can secure further education or employment, emphasising social mobility.
George Freeman
Con
Mid Norfolk
Announced the Government's commitment to doubling spending on apprenticeships and reaching 3 million new apprentices this year, stressing their importance for providing opportunity in areas previously left behind.
Diana R. Johnson
Lab
Kingston upon Hull North and Cottingham
Expressed concerns about the viability of small care home providers due to living wage increase without corresponding fee increases from Hull City Council, despite a proposed 2% social care levy.
Nicholas Boles
Con
Amber Valley
Responded to Diana Johnson's concerns by disputing the assessment that council tax increases would not address higher costs due to the national living wage. Emphasised positive impacts of minimum and living wage increases.
Craig Tracey
Con
North Warwickshire
Asked for assurances about the Secretary of State's work on driving forward the midlands engine project, expecting Budget news beneficial to west midlands constituents.
Sajid Javid
Con
Birmingham, Hall Green
Reiterated commitment to a long-term economic plan for the Midlands Engine, aiming for £34 billion increase in local economy and 300,000 jobs by 2030.
Greg Mulholland
Lib Dem
Leeds North West
Asked for confirmation that a measure requiring tenants to surrender lease length will be removed from the pubs code during final drafting stages.
Anna Soubry
Con
Broxtowe
Confirmed commitment to abiding by House of Commons' decision regarding pubs code, citing positive reception of the Pubs Code Adjudicator's appointment.
David Rutley
Con
Macclesfield
Inquired about steps being taken to help the next generation of entrepreneurs achieve their ambitions in self-employment and setting up businesses.
Anna Soubry
Con
Broxtowe
Acknowledged efforts to improve conditions for self-employed individuals, referencing an excellent report on the issue. Plans include encouraging more people to start their own business and ensuring better deals for those who are self-employed.
Gavin Newlands
SNP
Paisley and Renfrewshire North
Asked whether universities would be exempt from a new clause in grant agreements, which could prevent them from advising Government, Parliament and political parties.
Jo Johnson
Con
Orpington
Confirmed discussions with Cabinet colleagues regarding the treatment of universities concerning the proposed clause change.
Andrew Griffiths
Con
Burton
Asked about support for the beer and pub industry, requesting a further cut in beer duty similar to previous measures led by Sajid Javid as Economic Secretary to the Treasury.
Sajid Javid
Con
Birmingham, Hall Green
Acknowledged Andrew Griffiths' advocacy for the industry and highlighted recent support through a Pubs Code Adjudicator. Suggested previous success with beer duty cuts when he led such initiatives.
Jim McMahon
Lab Co-op
Oldham West, Chadderton and Royton
Asked about disparities in government spending on small and medium-sized businesses between different regions of the UK, highlighting low spend figures for the north-west and Oldham.
Anna Soubry
Con
Broxtowe
Defended Government commitment to the northern powerhouse despite lower per capita spending figures compared with national average.
Tom Pursglove
Con
Corby
Asked for support in securing a business rates holiday for steel industry employers in Corby ahead of final Budget discussions.
Anna Soubry
Con
Broxtowe
Stressed ongoing efforts to fight for the steel industry, including consideration of plant and machinery tax relief issues ahead of the Budget announcement.
Anna Turley
Lab Co-op
Redcar
Called for an immediate environmental review of the former SSI site in her constituency due to concerns over hazardous waste affecting the environment before a mayoral development corporation is implemented.
Anna Soubry
Con
Redcar
I am always keen to make sure we do the right thing by the site. I shall be revisiting Redcar on 21 March, as I promised to do, six months on from the unfortunate closure. The hon. Lady makes a good point. I am keen to ensure that we have this mayoral development company, but it must not be a white elephant.
Martin Vickers
Con
Brigg and Immingham
Businesses in my constituency are continually telling me that their plans for expansion are hampered by excessive and over-regulation, much of which emanates from the European Commission. Will the Minister give an assurance that the Government will always fight on behalf of businesses rather than regulators?
George Freeman
Con
Mid Norfolk
My hon. Friend is a doughty campaigner for small businesses, and I am delighted that in the last Parliament we reduced the cost of regulation on small businesses by £10 billion. Furthermore, we are committed to turbo-charge our deregulation initiative: it is not just one in, one out; it is one in, three out.
A recent report from PricewaterhouseCoopers highlighted innovation as a key driver of growth across the global economy. It also found that UK companies were less innovative and less focused on innovation as a driver for growth than the global average. With UK gross domestic product growth revised down by OECD and the IMF, is it not time that the Minister paid greater attention to supporting innovation in our economy?
Since 2010, the UK has risen from 14th to second place in the global innovation index, behind only Switzerland. We continue to support innovation in this country through Innovate UK and our expanding Catapult network.
Kit Malthouse
Con
North West Hampshire
The most promising sector in the British economy at the moment is life sciences, yet historically start-ups in this sector have had difficulty attracting venture capital. Will the Minister update us on progress he is making on getting this vital resource into this vital sector?
George Freeman
Con
Mid Norfolk
That gives me a chance to congratulate my hon. Friend on his leadership as deputy Mayor of the MedCity initiative in London. The life sciences sector is growing fast. Last year, we hit a 17-year financing high, with more than £1.7 billion raised for early-stage companies. The challenge now is to make sure that those emerging businesses grow into substantial global companies.
I welcome National Apprenticeship Week, which gives us a great opportunity to praise all apprentices, and to promote apprenticeships as a means of securing training skills and jobs for the future. In a statement on apprentices last Thursday, the Minister of State said: “We do not expect all companies that pay the levy to use up all the money in their digital accounts”.—[Official Report, 10 March 2016; Vol. 607, c. 454.] What does that mean in practice? Can large and small companies take up any unspent levy?
As ever, the Chair of the Select Committee has asked some penetratingly good questions, but I fear that I must ask him to wait until tomorrow, when he will hear more, as he will during the next few weeks.
Does the Minister agree that we need to give more training support to small businesses to encourage them to hire women who are re-entering the labour market after significant career breaks post-children?
Sajid Javid
Con
Bromsgrove
I absolutely agree with my hon. Friend. We are focusing strongly on the issue, and we are working on it with the Women and Equalities Minister. We want to ensure that women have the same opportunities as men to re-enter the work force, and we will treat that as a big priority.
Lisa Cameron
SNP
Peebles and South Edinburgh
The Government have pledged to halve the disability employment gap. What is the Minister doing to ensure that disabled people have access to apprenticeship opportunities and can fulfil their potential?
It gives me great pleasure to be able to agree entirely with the hon. Lady. This is incredibly important. The current rate of participation in apprenticeships is not too bad—I think it is about 8.8%—but we can always do more.
Neil Carmichael
Con
Stroud
Does the Secretary of State agree that, given that Conservatives In is keen to promote the economic case for our remaining in the European Union, it is excellent news that the CBI has said that 80% of its members support the EU?
Anna Soubry
Con
Redcar
Absolutely. It is incredibly important that an organisation of the CBI’s standing is backing the Stronger In campaign. Indeed, we hear an increasing number of voices from business standing up for British companies.
David Simpson
DUP
Upper Bann
Further to an earlier question, the Minister will know that we have many young entrepreneurs with innovative ideas in our universities throughout the United Kingdom. What more can the Government do to encourage them to stay in this country and produce their goods?
We continue to support innovation all over the country. Scotland is doing particularly well at present, with an 11% share of Innovate UK’s budget.
Michael Ellis
Con
Canterbury
What is my hon. Friend doing to deal with the appalling anti-Semitism at the Oxford University Labour club? We are now also hearing about an anti-Semitic play being performed at York University. Those are both appalling examples of disgraceful, blatant and rabid anti-Semitism.
I have, of course discussed the matter with the Vice-Chancellor of Oxford University, and also with the chief executive of the Higher Education Funding Council for England. Anti-Semitism has no place in our universities, or anywhere else in our society.
Conor McGinn
Lab
St Helens North
In this glorious week of the Cheltenham festival and St Patrick’s Day, will the Secretary of State join me in paying tribute to the Irish business community in Britain, and to all who work to promote trade between our two countries? Will he also acknowledge, and pay tribute to, the fact that the relationship has been cultivated within the European Union—and long may that continue?
George Freeman
Con
Mid Norfolk
On behalf of the Secretary of State, it is a great pleasure for me, as the son of a national hunt jockey who had a winner at Cheltenham, to join the hon. Gentleman in congratulating the Irish racing industry on what it does for the global economy and indeed for the UK economy.
Alan Mak
Con
Havant
Havant is a national centre for aerospace and engineering excellence. Will the Minister join me in congratulating everyone involved in the ExoMars space programme?
I certainly will. The UK space industry is indeed booming, with average growth rates of 8% over the past eight years.
Government Response
Britain is one of the top 10 places in the world in which to start and run a business. We are boosting skills, boosting productivity, raising the quantity and quality of apprenticeships in England, cutting tax and regulations and building stronger trading links with emerging markets. Local trading standards services are satisfied that companies like Hotpoint take faulty product issues seriously, especially when cases are raised in the House of Commons. Trading standards services work more efficiently across the country and consumers can enforce their rights established by the Consumer Rights Act.
▸
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.