Small and Medium-sized Businesses 2025-12-11
2025-12-11
TAGS
Response quality
Questions & Answers
Q1
Partial Answer
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Context
Love Beer Brewery in Milton faces viability issues due to tax freeze and increased beer duty, with monthly costs between £1,500 and £2,000.
Love Beer Brewery in Milton supplies fantastic ale but its viability is threatened by the freeze of income tax thresholds and increase in beer duty. Its owner has a day job to survive. Will the Minister say more about what else the Government can do to support small businesses like Love Beer?
We are introducing legislation later this year that will tackle late payments, which is the most important piece of legislation in the UK in this field for 25 years. This will make a dramatic difference by ensuring businesses have access to capital.
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Assessment & feedback
Did not address specific support measures for small breweries facing financial challenges from increased taxes.
Response accuracy
Q2
Partial Answer
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Context
Clean Power Hydrogen in Doncaster is a UK leader in green hydrogen production, employing about 60 people and capable of expanding to hundreds by 2035.
Clean Power Hydrogen employs about 60 people in Doncaster and has the ability to expand. What specific actions are being taken by the Department to support companies like Clean Power Hydrogen across the country?
We are delivering targeted catalytic public investment in our clean energy industries because we see climate change as an economic opportunity rather than a challenge. This is about future jobs.
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Assessment & feedback
Did not provide specific actions for supporting Clean Power Hydrogen's expansion and job creation.
Response accuracy
Q3
Partial Answer
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Context
Retail, hospitality, and leisure businesses in Slough are under immense pressure as they enter the festive period.
Although businesses welcome support measures already introduced, what specific immediate actions is the Government taking to boost the high street and ensure that Slough businesses not only survive but thrive?
We acknowledge that it has been a very difficult few years for the hospitality industry across the UK. We have put in £4.3 billion to protect businesses and provide transitional relief.
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Assessment & feedback
Did not provide specific immediate actions to boost high street businesses beyond mentioning existing measures.
Response accuracy
Q4
Partial Answer
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Context
Retail and hospitality businesses are experiencing enormous rate hikes despite promises of permanent lower business rates.
To add insult to injury, the letter from MHCLG about business rates change gives different information compared to the Treasury website. Will the Minister commit to getting in touch with his Cabinet colleague to correct these letters?
When the Conservatives left government, they had not provided a single penny to make sure the cliff edge would not affect every small business. We will look into the letters mentioned but the Conservatives need to get with the programme.
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Assessment & feedback
Did not commit to correcting inconsistent information in letters about business rates changes.
Response accuracy
Q5
Partial Answer
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Context
Businesses across the constituency are struggling due to increased national insurance contributions and pressures from Labour's Employment Rights Bill. Many businesses are questioning their viability or considering relocating overseas.
Why has the government's programme failed to recognise the impact on organisations across Bristol South? Businesses of all sizes in my constituency are struggling due to the strain of Labour’s increases to national insurance contributions and the pressures created by the Employment Rights Bill. Many tell me they are questioning their viability or even considering relocating overseas. Will the Minister set out what steps the Department will take to support entrepreneurship and ensure that businesses choose to invest and grow here in the UK, rather than being driven overseas?
We want to back British entrepreneurs and investors. That is why we addressed some of the key issues in our small business strategy, which we published earlier this year, particularly late payments. The Conservative Government refused to tackle that in any serious way across their 7 years. We are also looking at access to finance. If a business exports, it will be more resilient, more likely to grow and more successful in future years. UK Export Finance has been asked not just to focus on big contracts around the world but to ensure specific support for SMEs.
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Assessment & feedback
The answer did not directly address the specific ask about steps to prevent businesses from moving overseas or the impact of national insurance contributions and Employment Rights Bill.
Response accuracy
Q6
Partial Answer
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Context
The Scottish Chambers of Commerce has criticized the Labour budget as failing to reassure business owners and leaving SMEs in Scotland on the brink. The questioner met with businesses from whisky, hospitality, and energy sectors who are concerned about their future.
Scottish Chambers of Commerce have said that this Labour Budget ‘falls short of reassuring business owners’ and that SMEs in Scotland are being left ‘on the brink’. Businesses in Scottish whisky, hospitality, and crucial energy industries are affected. Will the Minister explain why Labour has let these businesses down?
Firstly, we have given £5 billion more to the Scottish Government; I wish they would stop whining and get on with delivering. Secondly, the Scotch Whisky Association has met me frequently since September. We are delivering trade deals around the world, such as a deal with India that will reduce tariffs from 150% to 75%, reducing further to 40%. This makes a radical difference in exporting Scotch whisky.
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Assessment & feedback
The answer did not address the criticism of the budget or provide specific steps to support SMEs. It focused on trade deals instead.
Response accuracy
Q7
Partial Answer
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Context
The government promised to introduce permanently lower business rates but recent announcements on higher valuations are likely to negate these benefits. UKHospitality estimates an average increase of 76% for hospitality businesses over the next three years.
We were pleased to hear that the Chancellor announced lower multipliers in the Budget, but higher valuations will wipe out any benefit from the lower multipliers. The average increase for hospitality businesses is estimated at 76%, compared with other sectors like warehouses and offices having much smaller increases. Given this information was known back in September, how does this align with the government’s pledge to support small businesses? How do they plan to meet their commitment to reduce business rates?
Everybody was aware after 2021's revaluation due to covid there would be significant increases following the new revaluation in 2024. There was no transitional relief set aside post-election. We provided £4.3 billion of relief this year, showing a strong future for our hospitality sector under Labour.
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Assessment & feedback
The answer did not address the specific discrepancies and the plan to reduce business rates as requested.
Response accuracy