Small Businesses Support 2024-02-06
2024-02-06
TAGS
Response quality
Questions & Answers
Q1
Partial Answer
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Context
The question arises from concerns about the financial health and growth prospects of small enterprises in the UK.
What fiscal steps is his Department taking to support small businesses?
Small businesses drive our economy, and we support them through various tax reliefs like the annual investment allowance and employment allowance. We provide rates relief for a third of business properties in England paying no rates, and we invest in SMEs via British Business Bank programmes.
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Assessment & feedback
Did not specify concrete new steps being taken currently beyond existing policies
Response accuracy
Q2
Partial Answer
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Context
The question pertains to the impact of national living wage increase on employment in sectors like tourism and hospitality, seeking policy adjustments.
What consideration has been given to reducing employer national insurance contributions to help small businesses sustain employment post-national living wage hike?
The employment allowance allows businesses with £100,000 or less in employer national insurance contributions bills to claim up to £5,000 off those bills. The smallest 40% of businesses are already exempt from paying these contributions due to this relief, many of which operate in hospitality and leisure.
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Assessment & feedback
Did not commit to reducing employer national insurance contributions specifically for the tourism and hospitality sectors
Response accuracy
Q3
Partial Answer
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Context
The question addresses the increasing burden on entrepreneurs due to regulations and tax policies, suggesting a preference for simpler taxes and less intervention.
Does the Minister agree that what small businessmen want is not more handouts but lower, simpler taxes and less regulation?
The Minister agrees with his instincts that lower taxes and fewer regulations can release entrepreneurial spirit, independence, and innovation across the UK, fostering its growth.
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Assessment & feedback
Did not provide specifics on tax or regulatory changes
Response accuracy
Q4
Direct Answer
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Context
The question highlights Labour's concern about the UK's falling business investment ranking and the government's commitment to a public sector net investment target.
Can the Minister offer reassurance on the future trajectory of public sector net investment, given past failures?
The Government plans to increase public sector net investment by £28 billion in real terms at the start of the next Parliament, representing a 40% increase from current levels or 7% annually—the largest ever published target.
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Assessment & feedback
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Response accuracy
Q5
Partial Answer
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Context
The question discusses the issue of late payments to small businesses, which has risen by 7% last year, causing insolvency issues.
What are the Government doing through project bank accounts to reduce the impact of late payments, especially given their role as a major contractor?
The Government put pressure on the public sector regarding late payments last year, and there will continue to be pressure on the private sector as well. The hon. Lady raises an important issue supported across the Chamber.
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Assessment & feedback
Did not specify concrete actions being taken through project bank accounts
Response accuracy