Business Insolvencies 2023-03-23
2023-03-23
TAGS
Response quality
Questions & Answers
Q1
Partial Answer
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Context
The Liberal Democrat MP noted the high levels of business insolvency in Scotland, specifically mentioning a significant number of companies entering insolvency in Edinburgh West. The Federation of Small Businesses criticised recent government measures.
In light of 313 company insolvencies in Scotland and the Federation of Small Businesses' criticism that there is nothing to support businesses once energy price supports end next month, does my hon. Friend agree that these companies need urgent review?
The Government have replaced one scheme with another due to a significant drop in wholesale prices since July-December last year. We are working with Ofgem and suppliers to ensure businesses entering fixed rate contracts between those dates are not unfairly treated.
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Assessment & feedback
Specifically avoided addressing the request for a review of the decision to end support
Replacing One Scheme With Another
Working With Ofgem
Response accuracy
Q2
Partial Answer
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Context
The MP highlighted business struggles in Edinburgh West, particularly in the hospitality sector due to high energy use. The Federation of Small Businesses criticised recent government measures.
Given 313 company insolvencies in Scotland and criticism from the FSB that there is nothing for businesses once energy price supports end next month, will the Government review their decision to remove business support at the end of the month?
The Government have not taken away support; they have replaced one scheme with another, reflecting that wholesale prices have significantly decreased since July-December last year. We are concerned about businesses on fixed rate contracts and working closely with Ofgem and suppliers to ensure they are treated fairly.
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Assessment & feedback
Specifically avoided addressing the request for a review of the decision to end support
Replaced One Scheme With Another
Response accuracy
Q3
Direct Answer
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Context
The MP questioned the impact of a £25 billion tax cut for businesses on investment and job creation in Southend.
Given that the Chancellor's Budget includes a £25 billion business tax cut, will this benefit national and international companies such as Olympus KeyMed and ESSLAB in Southend, thereby incentivising investment, boosting growth and creating more jobs across the UK?
The Chancellor has set a permanent annual investment allowance of £1 million for SMEs, and introduced full expensing across the board, costing around £9 billion annually. This is unique globally, and will significantly boost UK business investment.
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Assessment & feedback
Response accuracy
Q4
Partial Answer
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Context
The MP criticised the government for failing to adequately support small businesses, citing high insolvency rates, scrapped policies like Help to Grow: Digital, reduced energy bill supports, and low G7 investment.
Given 13 years of Tory failure with high insolvency numbers at a four-year peak, Help to Grow: Digital scrapped, energy bills slashed, and lowest business investment in the G7, will the Minister follow Labour's lead by reforming business rates, boosting skills, making Brexit work, and ensuring Britain is best for small businesses?
UK growth since 2010 has been third fastest in G7, private sector now larger than pre-pandemic. Three out of five businesses are more resilient post-pandemic. While business rates reform is discussed, scrapping them without a replacement would cost £22 billion annually.
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Assessment & feedback
Did not address the specific asks about Labour's agenda on reforms and making Brexit beneficial
Discussed Growth Figures
Resilience Of Businesses
Response accuracy