Commons Sense

House of Commons · Ministers' Questions

Support for Business

Tuesday 2 November 2021 · 7 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 4 Partly answered 3 Not answered 0

Key points

  • Last week's Budget included a super-deduction and new relief to incentivize business investment.
  • The Budget provided a 1.7 billion tax cut for small and medium-sized businesses across the UK.
  • The Chancellor announced a 50% discount on business rates for retail, hospitality, and leisure businesses, up to 110,000 each.

Topics (select to filter)

Questions & Answers

Q1 James Sunderland
Economy Business & Trade
Context

The question arises in the context of government policies aimed at supporting businesses and economic recovery. The MP wants to know what specific fiscal steps are being taken.

Question

What fiscal steps his Department is taking to encourage business investment?

Answer from Rishi Sunak (Chancellor of the Exchequer)

Last week's Budget set out an ambitious package to support business, enterprise and innovation: the super-deduction, new relief to incentivise investment, a reduction in business rates and investment in infrastructure, innovation and skills to drive future growth.

Answered
Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)

Q2 Virendra Sharma Lab
Business & Trade
Context

Southall's business owners on Boston Road and The Broadway are facing issues with the current business rates system. They require a more supportive structure.

Question

Business rates are broken. Business owners on Boston Road and The Broadway in Southall in my constituency do not want hypocritical answers. They want the system fixed to support smaller businesses and help them to thrive. What will the Chancellor do to help them?

Answer from Rishi Sunak (Chancellor of the Exchequer)

Last week's Budget set out a £1.7 billion tax cut for many small and medium-sized businesses across the UK. It will mean that retail, hospitality and leisure businesses will see a 50% discount in their business rates next year, up to the value of £110,000 each.

Answered
Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)

Q3 James Sunderland
Economy Local Government
Context

Bracknell and neighbouring Wokingham have one of the lowest centrally funded budgets in the country from central Government. The MP is concerned about levelling-up funding.

Question

The Chancellor will know that Bracknell has successfully reinvigorated its town centre and continues to be a great place to do business. Noting that Bracknell and neighbouring Wokingham have one of the lowest centrally funded budgets in the country from central Government, will he please reassure me that east Berkshire will not be passed by when it comes to levelling-up funding?

Answer from Rishi Sunak (Chancellor of the Exchequer)

I can assure my hon. Friend that, whether through the levelling up fund, the community ownership fund or the community renewal fund, this Government have ambitions to level up across the entire United Kingdom.

Answered
Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)

Q4 Pat McFadden Lab Wolverhampton South East
Taxation
Context

Recent announcements have led to concerns about additional taxes for the self-employed, especially after the support provided during the pandemic.

Question

I wish the Chancellor and my hon. Friend the Member for Ealing, Southall (Mr Sharma) a very happy Diwali. As well as all the tax rises on income and business that the Chancellor has announced in the past six months, buried in the Budget Red Book is a plan for a stealth tax on the self-employed of £1.7 billion over the next few years. After the past 18 months, in which many self-employed people have had no help at all, and when they are already being hit with the other tax rises he has announced, why are the self-employed now being hit with this extra tax rise?

Answer from Rishi Sunak (Chancellor of the Exchequer)

There were no extra taxes for the self-employed in last week's Budget; the right hon. Gentleman may be referring to a timing difference that was reflected in the Budget scorecard of previously announced policies.

Partly answered

Not addressed: extra tax rise on self-employed individuals

How: Referencing Timing Differences, Referring To Previously Announced Policies

Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)

Q5 Mark Harper Con
Economy Taxation Business & Trade
Context

The MP appreciates the steps taken in the Budget to help retail, hospitality and leisure businesses. He emphasizes the importance of getting public finances in order.

Question

May I first thank the Chancellor for the steps in the Budget to help retail, hospitality and leisure businesses? They have gone down very well in my constituency, where those businesses are important, were hit hard during in the pandemic and were grateful for the support they got. People have commented to me that the most useful thing he can do is to focus on getting the public finances in order, as he spoke about in the latter part of his speech, so that we get taxes on a downward path as we go through this Parliament. That is the best fiscal way to help businesses to prosper in the future.

Answer from Rishi Sunak (Chancellor of the Exchequer)

My intention and goal over the rest of this Parliament is to reduce taxes, and we both know that the best way to create growth and prosperity in this country is to unleash the entrepreneurial innovation of our private businesses.

Answered
Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)

Q6 Alison Thewliss SNP
Economy Scotland Business & Trade
Context

Hospitality and tourism businesses are facing a tough winter due to rising costs. The Scottish Government has implemented full rates relief, but the Chancellor's proposals are seen as inadequate.

Question

A happy Diwali to the Chancellor and all who are celebrating. Hospitality and tourism businesses face a tough winter, with rising fuel, staffing and supply costs. While the Scottish Government, to their credit, have brought in 100% rates relief, the Chancellor's proposals of a few pence off a pint are small comfort in comparison. A greater help would be maintaining the 12.5% value added tax rate right through next year, not putting it back up to 20% in the spring. Will he bring forward proposals to do that and to support our tourism and hospitality businesses in the Finance Bill?

Answer from Rishi Sunak (Chancellor of the Exchequer)

The reduced rate of VAT was put in place to support the hospitality industry during coronavirus. It extends all the way to next spring; it does not step up until next March, as the hon. Lady pointed out.

Partly answered

Not addressed: maintaining 12.5% VAT rate for longer period

How: Referring To Previous Announcements, Mentioning Business Rates Support

Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)

Q7 Jonathan Gullis
Economy Business & Trade
Context

Brewers have faced significant challenges during the pandemic and welcomed a reduction in draft beer duty rate.

Question

Brewers have gone through a really challenging time throughout the pandemic, so the Chancellor's announcement of a reduction in the draft beer duty rate was extremely welcome. Keith and Dave Bott, owners of Titanic Brewery, want to pass on their thanks to the Chancellor directly and hope that he can come and enjoy the Bulls Head in Burslem to celebrate this fantastic achievement.

Answer from Rishi Sunak (Chancellor of the Exchequer)

I thank my hon. Friend for the kind invitation, which he also sent me by phone. I look forward to accepting it soon and to celebrating Stoke's success in not one, not two but three levelling-up fund bids.

Partly answered

Not addressed: acceptance of specific event invitation

How: Mentioning Other Levelling-Up Achievements

Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)