Commons Sense

House of Commons · Ministers' Questions

SMEs: Operating Costs

Thursday 25 January 2024 · 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 0 Partly answered 2 Not answered 0

Key points

  • The Government has taken action including freezing fuel duty and introducing the energy bills discount scheme.
  • The Scottish Government has not passed on support for business rates, leaving Scottish businesses 15,000 worse off per year compared to their English counterparts.
  • Closure rates in Scotland are 30% higher than in England.

Topics (select to filter)

Questions & Answers

Q1 Christine Jardine Lib Dem Edinburgh West
Scotland Business & Trade
Context

The question arises from rising operating costs for SMEs, including energy costs and inflation. There is a 10% increase in Scottish SMEs experiencing financial distress according to research.

Question

What assessment her Department has made of the implications for her policies of trends in the level of operating costs for small and medium-sized enterprises? The number of Scottish SMEs in financial distress is up 10%, affecting employment in tourism. What more will be done to reassure businesses?

Answer from Kevin Hollinrake

The Government have taken action including freezing fuel duty and introducing the energy bills discount scheme. The Scottish Government has not passed on support for business rates, leaving businesses £15,000 worse off per year compared to their English counterparts.

Partly answered

Not addressed: Whether he will ask the Chancellor to do more in the forthcoming Budget to help them?

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Q2 Christine Jardine Lib Dem Edinburgh West
Economy Scotland Business & Trade
Context

SMEs are struggling with soaring energy costs, inflation, and Brexit red tape. There is a 10% increase in Scottish SMEs experiencing financial distress.

Question

The number of Scottish SMEs in financial distress is up 10%, according to research. These businesses have a huge impact on employment in tourism, which is one of our main industries. Will the Minister tell me what more the Department will do to reassure businesses in my constituency and elsewhere?

Answer from Kevin Hollinrake

The Scottish Government has not passed on support for business rates, leaving businesses £15,000 worse off per year compared to their English counterparts. Closure rates in Scotland are 30% higher than in England.

Partly answered

Not addressed: Will the Minister ask the Chancellor to do more in the forthcoming Budget to help them?

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Q3 Rushanara Ali Lab Bethnal Green and Stepney
Economy Business & Trade
Context

There are more business closures than new openings, with 345,000 businesses closing in 2022—the highest since records began. The Financial Times reported that over 47,000 businesses are on the verge of collapse.

Question

Business closures now exceed new business openings, with 345,000 businesses across the UK closing in 2022—highest ever recorded. More than 47,000 businesses are on the brink of failure this week. Former Prime Minister Johnson used an expletive to describe his party's commitment to business; his successor crashed the economy further. Is it time for a general election to let the country get back to business?

Answer from Kevin Hollinrake

On this side of the House, we are for business because we are from business, and we understand the needs of businesses.

Not addressed: Is it not time the Government put businesses out of their misery by calling a general election, so that the country can get back to business?

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