Commons Sense

House of Commons · Ministers' Questions

Business Insolvencies

Thursday 23 March 2023 · 4 questions

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

Read the full transcript on Parliament.uk

At a glance

Answered 1 Partly answered 3 Not answered 0

Key points

  • Christine Jardine inquired about 313 company insolvencies in Scotland and the Federation of Small Businesses' criticism of lacking support for businesses after energy price supports end.
  • The Government replaced one support scheme with another due to a significant drop in wholesale energy prices since July-December last year.
  • The Chancellor introduced a permanent annual investment allowance of 1 million for SMEs and full expensing across the board, costing around 9 billion annually.

Topics (select to filter)

Questions & Answers

Q1 Christine Jardine Lib Dem Edinburgh West
Economy Energy Business & Trade
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.

Question

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?

Answer from Kevin Hollinrake

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.

Partly answered

Not addressed: Specifically avoided addressing the request for a review of the decision to end support

How: Replacing One Scheme With Another, Working With Ofgem

Was this summary accurate? Tell us

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

Get updates like this by email
Q2 Christine Jardine Lib Dem Edinburgh West
Economy Energy
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.

Question

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?

Answer from Kevin Hollinrake

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.

Partly answered

Not addressed: Specifically avoided addressing the request for a review of the decision to end support

How: Replaced One Scheme With Another

Was this summary accurate? Tell us

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

Get updates like this by email
Q3 Anna Firth
Economy Business & Trade
Context

The MP questioned the impact of a £25 billion tax cut for businesses on investment and job creation in Southend.

Question

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?

Answer from Kevin Hollinrake

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.

Answered
Was this summary accurate? Tell us

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

Get updates like this by email
Q4 Seema Malhotra Labour (Co-op) Feltham and Heston
Economy Business & Trade
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.

Question

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?

Answer from Kevin Hollinrake

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.

Partly answered

Not addressed: Did not address the specific asks about Labour's agenda on reforms and making Brexit beneficial

How: Discussed Growth Figures, Resilience Of Businesses

Was this summary accurate? Tell us

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

Get updates like this by email