Small and Medium-sized Businesses 2024-12-12
2024-12-12
TAGS
Response quality
Questions & Answers
Q1
Partial Answer
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Context
The question arises from the government's announced support measures for small and medium-sized enterprises.
What steps his Department is taking to support small businesses. Last week, I had the pleasure of visiting the winners of my first Small Business Saturday awards in Southampton Itchen. They were Riann Care, The Bunker, Miss Ellie's Café and Julie's Dance Studio. Will the Secretary of State join me in congratulating them on their role in ensuring a thriving local economy? What assurances he can offer them that this Government have the back of small businesses?
Small businesses are the beating heart of our high streets and communities, and are essential to our economic success. That is why, on Small Business Saturday, I announced the business growth service, which will ensure that businesses across the UK get quicker and easier support and advice from Government. Further announcements include the disability finance code for entrepreneurship to improve access to capital and tackle inequality for disabled entrepreneurs. A new fair payment code was launched by the Office of the Small Business Commissioner to help address late payments. Next year, as my hon. Friend has said, the small business strategy will be published to create thriving high streets, easier access to finance, open overseas and domestic markets and enhanced business capability.
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Assessment & feedback
The answer does not provide specific assurances for local businesses or directly address their concerns about government support.
Changed Subject
General Statements
Response accuracy
Q2
Direct Answer
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Context
The question highlights the unique contribution of co-operative business models, particularly in Norwich's historical context.
Small and medium-sized businesses come in many forms, from microbusinesses to community interest companies and co-operatives. Often, co-operative and mutual business models are overlooked. Norwich has a proud history of co-operatives. Will the Secretary of State reassure me that co-operative and mutual business models will be properly included in this Government's much-needed push to support small and medium-sized businesses?
I very much welcome my hon. Friend's question. My area on the eastern side of Greater Manchester has, like hers, a huge history of co-operatives and mutuals. The diversity in business models that they bring is a huge strength; they bring different things to the market and different ways of doing business. The resilience in co-operative models is particularly attractive. I can assure her that they form part of the Government's wider strategy. Our ambition is to double mutuals' size in the economy. The Under-Secretary of State for Business and Trade, my hon. Friend the Member for Harrow West (Gareth Thomas), the small business Minister, is leading on that work, and I would love my hon. Friend and businesses from her area to be involved in it.
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Assessment & feedback
Response accuracy
Q3
Partial Answer
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Context
The question comes from recognition of local business achievements and concerns about governmental support.
Last week, I had the pleasure of visiting the winners of my first Small Business Saturday awards in Southampton Itchen. They were Riann Care, The Bunker, Miss Ellie's Café and Julie's Dance Studio. Will the Secretary of State join me in congratulating them on their role in ensuring a thriving local economy? What assurances he can offer them that this Government have the back of small businesses?
I am extremely grateful to my hon. Friend for his question. I certainly join him in congratulating those local businesses on their work and, indeed, all Members of Parliament on the work that they do on their constituency days to champion and support local businesses. The Government's agenda includes long-term reform of business rates to create permanently low business rates for retail, hospitality and leisure. The launch of high-street rental auctions, getting rid of derelict property in town centres, is also hugely exciting. The business growth service is predominantly about recognising that although the Government do a lot, businesses can often find it hard to access exactly what they need.
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Assessment & feedback
The answer does not provide specific assurances for local businesses or directly address their concerns about government support.
Changed Subject
General Statements
Response accuracy
Q4
Partial Answer
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Context
The question relates to the increase in national insurance contributions and its impact on small businesses.
Last Saturday was indeed Small Business Saturday. It was an opportunity for us to celebrate and support the many small businesses in our constituencies. However, too many of them are really worried about the increase in national insurance contributions—the £25 billion jobs tax—and there is simply no easy answer for them. They cannot just put up their prices, so they are looking at staffing levels. Why are the Government so against aspiration, and how do they think they will improve productivity and deliver growth in the economy?
Conservative Members know what they left behind, and I have not heard any of them offer an alternative. The specific answer to the right hon. Member's question is that employment allowance was doubled in the Budget and the threshold was taken off. That is why 1 million, mainly smaller, businesses are paying less or the same in national insurance contributions as they were before the Budget.
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Assessment & feedback
The answer does not fully address concerns about impacts on small business operations or staffing levels.
Changed Subject
General Statements
Response accuracy
Q5
Partial Answer
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Context
The question is about the government's policies that affect employer national insurance contributions and potential impacts on small business staffing.
The Government have raised national insurance charges on employers and introduced a family farm and a family business tax. The Employment Rights Bill will raise business costs by £5 billion, predominantly for small businesses. As a result of those changes, does the Secretary of State believe that SMEs will employer more or fewer people?
I have absolutely no doubt that the Government's agenda is one for employment, business investment and growth. Some of the things that this country needs the most could only have been delivered by a change of Government. I simply do not believe that the Conservative party is capable of reforming the planning system or having a long-term industrial strategy, fixing our relationship with the European Union, and all the rest of it.
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Assessment & feedback
The answer does not address the specific question about employment impact on SMEs from policy changes.
Changed Subject
General Statements
Response accuracy
Q6
Partial Answer
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Context
The question arises from the debate over inheritance taxes' impact on family-owned businesses, a critical issue for long-term growth.
Some of the most successful small and medium-sized businesses are owned by families. Why does the Secretary of State think it will help his long-term growth mission to tax these businesses when they get passed to the next generation?
With respect, I hear calls from the Conservatives to cut taxes and increase spending but no account of how they would do that. The UK has a competitive tax system benchmarked in corporation tax, capital gains taxes, and inheritance taxes. Adjustments to specific reliefs for businesses and agricultural property are on top of existing thresholds.
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Assessment & feedback
The questioner's specific concern about the impact of inheritance tax on family business succession was not directly addressed.
I Hear A Lot Of Calls From The Conservatives To Cut Taxes And Increase Spending, But Still No Account Of How They Would Do That.
Response accuracy
Q7
Partial Answer
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Context
The question is prompted by the need for better rural transport to support small businesses like Carbon ThreeSixty in the constituency, which faces challenges with public transport and cycle routes.
Small businesses are at the heart of local communities. How has the Secretary of State discussed with other Departments about improving rural transport infrastructure to support such firms?
I welcome the hon. Member's question and highlight the importance of rural businesses. The role of my Department is to focus on championing issues across Government, whether they sit neatly in the Department or not. Transport is a significant part of long-term investments that will grow the productive potential of the UK over the next decade.
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Assessment & feedback
The specific request for confirmation on cross-departmental discussions was not directly addressed.
Her Points About Transport Were Well Made. One Of The Big Changes In The Budget Was The Ability To Focus On Long-Term Investments.
Response accuracy