Commons Sense

House of Commons · Ministers' Questions

Rural Microbusinesses

Thursday 23 March 2023 · 3 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 2 Not answered 0

Key points

  • Bob Seely raised concerns about the challenges faced by microbusinesses and small businesses in rural areas, particularly regarding their reliance on post offices and the banking payment regime issues affecting sub-post officers.
  • The Minister acknowledged the importance of support for small and microbusinesses in rural areas and expressed concerns about the impact of recent banking deposit limits on post offices.
  • Barry Sheerman questioned the difficulty farmers and social enterprises face in obtaining bank accounts in his constituency and requested action on the matter.

Topics (select to filter)

Questions & Answers

Q1 Bob Seely Con
Business & Trade Agriculture & Rural Affairs
Context

The MP is concerned about the growth of micro-businesses in rural and isolated communities, emphasizing their unique challenges.

Question

What steps her Department is taking to support the growth of micro- businesses in rural and isolated communities. I am concerned that these small entities face specific challenges that require tailored assistance.

Answer from Kevin Hollinrake

As somebody from a business background who also represents a rural area, I fully understand the importance of provision of a range of support to help small and microbusinesses to grow, including those in rural areas. Such businesses can find support through the free business support helpline, the 38 growth hubs across England, and the newly launched “Help to Grow” website, as well as through start-up loans. I note that 240 businesses on the Isle of Wight have benefited from start-up loans.

Answered
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Q2 Bob Seely Con
Business & Trade
Context

The MP is raising concerns about the relationship between banks and sub-post offices, noting that banks are increasingly shutting down and passing responsibilities onto sub-postmasters who do not receive adequate remuneration.

Question

Some microbusinesses and small businesses are incredibly reliant on post offices and sub-post offices. My sub-postmasters—Andy Smith in Ventnor were the last I spoke to—are increasingly concerned about the payments regime for sub-post officers. Banks are increasingly shutting down, passing responsibilities for cash takes on to sub-postmasters who do not get adequate remuneration. Will the Government look at the payments system specifically?

Answer from Kevin Hollinrake

That is an interesting point. That relationship between banks and post offices is important for post offices and the banks, so we urge fair terms to be struck. We have concerns about recent banking deposit limits introduced to cover money laundering issues. I am looking into that in great detail and at pace to resolve those issues because they limit remuneration for postmasters.

Partly answered

Not addressed: The specific review of the payments system as requested was not directly addressed.

How: Looking Into

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Q3 Barry Sheerman Lab
Business & Trade Agriculture & Rural Affairs
Context

The MP is raising issues faced by rural businesses, particularly farmers, who struggle to open bank accounts with larger banks. The lack of a bank account hampers their ability to function.

Question

My constituency has large rural areas and lots of farmers who have difficulty in getting a bank account at all. Social and trade enterprises cannot get a bank account either. Could we get some action on that?

Answer from Kevin Hollinrake

If the hon. Gentleman writes to me about specific instances, I will be very happy to look at them. There has been a significant increase in the number of new banks entering the marketplace, such as Starling Bank and Tide, so it is getting easier to open a bank account. I know that it is difficult with some of the larger banks. I am very happy to look into the specific instances referred to and see if we can help.

Partly answered

Not addressed: The direct action requested was not specifically committed to, only to look at specific cases.

How: Looking Into

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