Commons Sense

House of Commons · Ministers' Questions

Small Businesses: Growth

Thursday 18 May 2023 · 6 questions

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

Read the full transcript on Parliament.uk

At a glance

Answered 3 Partly answered 3 Not answered 0

Key points

  • The Government are providing better support for small and medium-sized businesses through growth hubs, management schemes, mentorships, and improved access to finance.
  • The Minister highlights the economy's growth and the reduction of inflation as key factors in supporting businesses.
  • Labour's plan to scrap business rates and replace them with a sales tax has been questioned regarding the source of funding for the 22 billion raised by business rates in England.

Topics (select to filter)

Questions & Answers

Q1 Simon Fell
Business & Trade
Context

No specific context provided, but the question is about steps to support SMEs growth.

Question

What steps she is taking to help support the growth of small and medium-sized businesses.

Answer from Kevin Hollinrake

The Government are providing better support in a number of ways, including through our network of 38 growth hubs across England, our Help To Grow management scheme and mentorships. We are improving access to finance, not least through our start-up loans and recovery loan scheme. We are removing barriers to trade for our SMEs. Those that are seeking to grow through exports can now access support through our UK Export Academy and UK Export Finance.

Answered
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Q2 Samantha Dixon Lab Chester North and Neston
Economy Employment Business & Trade
Context

The question is prompted by concerns over increasing costs, staff shortages, and the closure of businesses in Chester due to energy bills, health-related absences, and other issues.

Question

Small and medium-sized businesses are the beating heart of Chester and our country's economy, yet their costs have become crippling, with extortionate energy bills, staff shortages and businesses forced to shut their doors for good. Reports show that a record number of people are off work due to health reasons, notably an increase in mental health issues. What is the Government's plan to put that right and help businesses in Chester and up and down the country?

Answer from Kevin Hollinrake

The hon. Lady raises an important point. The first thing we will do for any business is to ensure that the economy is growing, as it is. We are seeing much higher rates of growth than anticipated by many, and we are cutting the costs of doing business by halving inflation, which again is incredibly important for business. In the short term, we are providing support with £13.6 billion of business rate discounts. We put £23 billion into energy discount schemes, too. We also have a big programme, across government, to try to get 9 million people who are economically inactive back to work.

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Q3 Stephen Morgan Lab Portsmouth South
Economy Taxation Business & Trade
Context

The question is prompted by concerns over rising business rates, supply chain issues, and energy costs affecting Portsmouth's SMEs.

Question

Portsmouth's fantastic small and family-run businesses tell me that after the Tories crashed the economy, they are struggling with rising business rates, supply chain issues and soaring energy costs. Why does the Minister not just adopt Labour's plan to scrap business rates and replace them with a system fit for the 21st century?

Answer from Kevin Hollinrake

We would all like to reform business rates. When people in my constituency hear about Labour's plans to scrap business rates, the question I always get is, “Where is the money coming from?” Business rates raise £22 billion in England alone. I have heard Labour's plans to scrap business rates. Which taxes will be increased to make up that shortfall? That is the question. We are reforming business rates to ensure that small businesses pay less, and providing short-term discounts.

Partly answered

Not addressed: The questioner asked why Labour's plan was not adopted but did not receive a direct answer; instead, the minister questioned where the funding would come from for Labour's proposed change.

How: Questioning, Challenging Assumptions

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Q4 Robbie Moore Con Keighley and Ilkley
Business & Trade
Context

The question is prompted by a business roundtable in the constituency, where SMEs expressed interest in exporting their products.

Question

I recently had the pleasure of hosting a business roundtable in my constituency for small and medium-sized businesses, many of whom are proud of the products and services they want to export. Will my hon. Friend outline what additional steps the Government are taking to support small and medium-sized businesses in my constituency and across the UK that are looking to export their world-leading products to the global market?

Answer from Kevin Hollinrake

My hon. Friend is a great champion for his businesses across Keighley, and I thank him for the work he does. He will know that through our export strategy, “Made in the UK, Sold to the World”, we provide extensive support and advice to SMEs, whether they are considering exporting, learning about how to go about it, or expanding into new markets. UK Export Finance focuses on supporting SMEs so that they can secure export opportunities.

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Q5 Simon Fell
Economy Employment Business & Trade
Context

The question is prompted by anticipated job growth due to government projects such as Dreadnought and AUKUS, but challenges for local SMEs with recruitment and retention issues.

Question

Barrow-in-Furness is, I hope, about to enter a 25-to-30 year jobs boom thanks to the Government's steadfast support for Dreadnought, AUKUS and the renewable energy projects up and down our coast. However, that causes issues for our local SMEs, which are struggling to retain and recruit, not least because of the geographical isolation of Barrow-in-Furness. May I invite my hon. Friend the Minister to cross the Pennines to speak to the SME cluster that I chair over there and hear some of their concerns? Does the Department have some specialist support to help those businesses leaning into this new economic challenge?

Answer from Kevin Hollinrake

I would be happy to cross the Pennines; I have been known to. It would be my pleasure to do that. What businesses want more than anything is to make sure that we have a growing economy, which we have, and that we are controlling costs by halving inflation. The next thing that businesses want is access to labour and skills. I attended the British Chambers of Commerce's global event yesterday at the QEII Centre, and it was one of the key asks. We are doing many things on making the workplace more attractive: flexible working and, for example, carer's leave. We have a programme across government to try to get those 9 million people who are currently economically inactive back to work.

Partly answered

Not addressed: The questioner asked if there was specialist support but the answer focused more on general economic and labour issues.

How: Changing Subject

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Q6 Chi Onwurah Lab Newcastle upon Tyne Central and West
Business & Trade
Context

The question is prompted by concerns over the £20 billion in money held up in late payments, which should be flowing to SMEs for innovation and development.

Question

Twenty billion pounds! That is the amount of money currently held up in late payments—more than the entire science budget. It should be flowing to small businesses, allowing them to innovate, develop new products, create new jobs, drive our local economies or simply stay afloat. Instead, every day thousands of our great British small and medium-sized enterprises are wasting precious time and money chasing late payments, at an estimated cost of £684 million a year. For the sake of British business, will this Government take a leaf out of Labour's policy book and properly legislate to tackle late payments to small businesses?

Answer from Kevin Hollinrake

Well, £90 billion is the amount of Labour's uncosted spending plans, but let us talk about the £20 billion for now. The hon. Member is absolutely right to raise the issue of late payments. I attended a roundtable yesterday as part of our payment and cash flow review consultation, which is hugely important. We have significant engagement with businesses across the piece. We are determined and ambitious to reform the rules on late payments to ensure that businesses get paid on time.

Partly answered

Not addressed: The questioner asked if there would be legislation but received no commitment; instead, the minister noted a consultation is ongoing.

How: Challenging Assumptions

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