Commons Sense

House of Commons · Ministers' Questions

SMEs

Tuesday 28 June 2022 · 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

  • Ministerial support includes raising the employment allowance and extending the annual investment allowance for small and medium-sized enterprises.
  • The government provided business rates relief for retail and hospitality sectors, acknowledging ongoing challenges faced by these industries.
  • Proposals were made to support high street businesses through a 50% business rate cut to address online competition impacts.

Topics (select to filter)

Questions & Answers

Q1 Gagan Mohindra Con South West Hertfordshire
Economy Business & Trade
Context

The MP inquired about the government's fiscal measures to aid SMEs facing economic challenges.

Question

What fiscal steps his Department is taking to support small and medium-sized enterprises?

Answer from Helen Whately

Small and medium-sized businesses are at the heart of our economy, creating jobs and prosperity across the UK. We continue to give substantial support to SMEs by raising the employment allowance; extending the £1 million annual investment allowance; providing business rates relief for retail, hospitality and leisure businesses; and with the Help to Grow programme.

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Q2 Saqib Bhatti Con Meriden and Solihull East
Business & Trade
Context

The MP met business owners who expressed concerns about supply chain costs and the cost of living.

Question

What assurances can my hon. Friend give the businesses in my constituency, especially those in the hospitality sector, that the Government will keep them in mind in terms of future support?

Answer from Helen Whately

It is good to hear that my hon. Friend has been speaking to the hospitality sector in his constituency, no doubt drawing on his expertise in those conversations. As he said, we provided substantial support to that sector during the pandemic. We recognise the ongoing challenges for businesses as we recover, which is why we are giving thousands of hospitality, leisure and retail businesses a 50% cut in business rates this financial year—worth up to £110,000 per business.

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Q3 Gagan Mohindra Con South West Hertfordshire
Business & Trade
Context

The MP held walkarounds in his constituency and heard concerns from local entrepreneurs about online competition.

Question

Will my hon. Friend explain what steps the Department is taking to support our high street businesses in the face of online competition?

Answer from Helen Whately

I commend my hon. Friend for his campaign in his local high streets and for the work he is doing with local businesses. I agree with him on the importance of high streets and the businesses on them, which is why we are supporting high street businesses with our 50% business rate cut for thousands of retail, hospitality and leisure businesses; our freeze to the business rates multiplier; and funding through the community renewal fund, towns fund and levelling-up fund.

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Q4 Tim Farron Lib Dem Westmorland and Lonsdale
Immigration Housing Business & Trade
Context

The MP highlighted the issue of workforce shortages affecting Cumbria's hospitality sector.

Question

Does she agree that the two key areas are a lack of affordable housing so that people can live close to the place where they need to work in rural communities, and the fact that the Government have yet to come up with adequate visa provisions to allow employers to supplement a local workforce with an overseas one? What action will she take to support small and medium-sized businesses, especially in hospitality, in Cumbria and elsewhere?

Answer from Helen Whately

There was a great deal in that question, but broadly it was about access to the workforce for businesses. We have a really successful story on jobs, with record numbers of people in payroll employment, but I also hear about the work that businesses are doing to fill vacancies. We are supporting businesses, for instance, with our successful Way to Work scheme and the investment we are making in people's skills to ensure that they align to the vacancies that employers are looking to fill.

Partly answered

Not addressed: visa provisions

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Q5 Peter Grant SNP
Economy Business & Trade
Context

The MP raised concerns about late payments by main contractors affecting smaller subcontractors.

Question

Will the Minister agree to meet me to discuss the possibility of making sure that those moneys are kept in a protective bond, so that if we cannot prevent the main contractor from going bust, we can at least stop it dragging down hundreds of small businesses with it?

Answer from Helen Whately

I do have conversations with the construction sector and more widely about infrastructure investment in this country. I am happy to meet the hon. Gentleman to talk about the specific suggestion he has to help the construction sector.

Partly answered

Not addressed: protective measures against late payments

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Q6 Abena Oppong-Asare Lab Erith and Thamesmead
Economy Taxation Business & Trade
Context

The MP suggested alternative fiscal measures such as scrapping business rates and national insurance hikes.

Question

If the Chancellor really wanted to help British businesses, he would back Labour's plan to scrap business rates and replace them with a fairer system. He could reverse his tax on jobs and scrap the national insurance hike, and he could use public procurement and other tools to buy, make and sell more in Britain. He has imitated Labour's policies before: why not follow Labour's lead again and help struggling businesses?

Answer from Helen Whately

Business rates and national insurance are an important contribution to paying for public services, which I am sure the hon. Lady's constituents, like mine, feel very strongly about. I remind her of the scale of support that we are providing to businesses, including a business rates cut worth £1.7 billion this year.

Partly answered

Not addressed: Labour's plan details

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Q7 Esther McVey Con Tatton
Economy Energy Business & Trade
Context

The MP urged the Chancellor to provide greater fuel duty relief to assist businesses affected by rising costs.

Question

I appreciate that the Chancellor cut fuel duty by 5p per litre, but that did not really touch the sides. I urge him to be bolder and cut fuel duty by at least 20p per litre, as requested by FairFuelUK, which would make a huge difference to individuals and businesses in my patch, not least hauliers for whom the cost of running a single truck has increased by 17% in the past year.

Answer from Helen Whately

I hear my right hon. Friend's request. The combination of the freeze on fuel duty in the Budget and the cut in the spring statement is essentially a £5 billion tax cut. That is substantial support with the cost of fuel for businesses. As I have also said, we are taking further steps to support businesses with business rate cuts. I also remind her of our cut to national insurance, increasing the employment allowance by £1,000, supporting around 500,000 smaller businesses.

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