Commons Sense

House of Commons · Ministers' Questions

Small Businesses: Economic Growth

Thursday 5 September 2024 · 8 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 6 Not answered 0

Key points

  • Ministerial questions focused on the role of small businesses in economic growth and local communities.
  • Responses highlighted the importance of addressing challenges faced by small businesses, such as access to banking services and financial support.
  • Meetings were proposed to discuss specific issues affecting small businesses in various regions and sectors.

Topics (select to filter)

Questions & Answers

Q1 Ashley Dalton Lab West Lancashire
Economy Business & Trade
Context

The MP is concerned about the potential for small businesses in West Lancashire to contribute to government initiatives aimed at promoting economic growth.

Question

What assessment he has made of the potential contribution of small businesses to the Government's growth mission?

Answer from Jonathan Reynolds

small businesses are the beating heart of our high streets and communities, and they are essential to economic success and our growth mission. We want growth in every part of the UK, and small businesses have an enormous role to play in that.

Partly answered

Not addressed: The specific assessment requested was not provided; instead, general statements were made about the importance of small businesses.

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Q2 David Burton-Sampson Lab Southend West and Leigh
Business & Trade
Context

The MP highlights that Southend and Leigh have over 7,100 small and medium-sized enterprises facing various challenges.

Question

In Southend and Leigh, there are over 7,100 small and medium-sized enterprises, and in areas like Leigh Road, the Broadway and London Road, very few units are empty. Will my right hon. Friend meet me and representatives of the local business community to understand the challenges they face, and to discover some of the opportunities that businesses have taken to really capture the market?

Answer from Jonathan Reynolds

I welcome my hon. Friend to his place. I have always enjoyed my visits to his constituency, particularly enjoying an ice cream at Rossi's ice cream parlour. Those visits had a serious purpose: they helped us to build our programme for small business, which recognises not only issues such as late payments, but the need for the whole Government to tackle access to finance and retail crime. I will be delighted to make sure that my hon. Friend gets the meeting he requests with my officials.

Partly answered

Not addressed: The specific challenges mentioned were not addressed; instead, a general offer of a meeting was made.

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Q3 Alex Baker Lab Aldershot
Economy Business & Trade
Context

The MP notes that small businesses in her constituency are concerned about rising costs, impacting their ability to trade.

Question

Small businesses in my constituency are keen to play their part in the Government's growth agenda, but they tell me that they have been priced out of trading in Farnborough town centre because of rising costs. Will the Secretary of State join me in congratulating the Federation of Small Businesses, which this September celebrates its 50th year of supporting small businesses in the UK? What is his Department doing to ensure that small businesses that want to trade on the high street are supported to do so?

Answer from Jonathan Reynolds

I also welcome my hon. Friend to her place. I was pleased to meet her at the Farnborough air show, of which she is extremely proud. I extend birthday wishes to the Federation of Small Businesses, with which we work very closely on policies such as late payments. The FSB has over 150,000 members across the country and began in Blackpool.

Not addressed: The specific support requested was not addressed; instead, general statements were made about collaboration with the Federation of Small Businesses (FSB).

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Q4 Ashley Dalton Lab West Lancashire
Business & Trade
Context

The MP raises concerns about a lack of access to cash banking services in rural areas, which is hindering business growth.

Question

West Lancashire is rich in small and medium-sized enterprises and boasts several markets, but local business owners and market traders tell me that a lack of access to cash banking services is a major obstacle to growing their businesses and is placing additional costs on trading. How are the Government planning to support SMEs' access to cash banking services, especially in rural areas?

Answer from Jonathan Reynolds

This issue is important to Members in all parts of the country, but I recognise my hon. Friend's particular point about prosperous rural economies. Access to banking and financial services is a prime example of the fact that the Government will work across every Department to make sure we are giving businesses what they need. We will see at least an additional 350 banking hubs in this Parliament.

Partly answered

Not addressed: The specific plans requested were not provided; instead, a general commitment was made about working across Departments and increasing the number of banking hubs.

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Q5 Louie French Con Old Bexley and Sidcup
Economy Business & Trade
Context

The MP is concerned about the impact of proposed congestion charges, ultra-low emission zone charges, and new tunnel taxes on van drivers in his constituency.

Question

Under the Labour Mayor of London's proposals, many small businesses that drive vans via the Blackwall tunnel will soon have to pay charges of up to £40 a day—the congestion charge, the ultra low emission zone charge, and the Mayor's new tunnel tax. Do the Government agree that this is neither fair nor good for economic growth?

Answer from Jonathan Reynolds

I thank the hon. Member for raising a matter important to his constituency. My Department works closely with devolved arrangements in the UK, and it is important to work with them with respect and good faith. This question is clearly for the Mayor of London; we always take heed of the aggregate impact on business at every level of government.

Not addressed: The specific stance requested was not addressed; instead, the responsibility was deferred to the Mayor of London.

How: Deflection

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Q6 Sarah Dyke Lib Dem Glastonbury and Somerton
Business & Trade
Context

The MP highlights a decline in business confidence scores among small businesses in the south-west.

Question

Small businesses in the south-west have a huge role to play in growing the economy. However, the latest south-west small business index score has declined by 23%. Will the Minister meet me to discuss how we can support small businesses across the south-west?

Answer from Jonathan Reynolds

Business confidence was strengthened considerably following the general election and the return to political stability. However, I hear the hon. Lady's point about her area and region, which is an important priority for me. I will ensure she gets the meeting she needs.

Partly answered

Not addressed: The specific decline in confidence was not addressed; instead, a general offer of a meeting was made to discuss priorities.

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Q7 Peter Bedford Con Mid Leicestershire
Business & Trade
Context

The MP inquires about the government's action plan to support small and medium-sized businesses in securing access to financial resources.

Question

What action is the Government taking to support small and medium-sized businesses in getting access to finance, so that they can grow for the future?

Answer from Jonathan Reynolds

I thank the hon. Member for his question. Positive developments have occurred through the work of the British Business Bank. The Government feel that the landscape for public finance institutions is busy, and the key policy is to ensure the national wealth fund aligns with priorities in this area, expanding work done and ensuring consistency so businesses understand the landscape.

Partly answered

Not addressed: The specific action plan requested was not detailed; instead, general statements were made about positive developments through the British Business Bank and alignment of national wealth fund policies.

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Q8 Sarah Olney Lib Dem Richmond Park
Business & Trade
Context

SMEs face difficulties with red tape when trading internationally, especially since the introduction of the common user charge in April. Small businesses in agrifood industries are struggling with chaos and high costs.

Question

It is a pleasure to see the Secretary of State at the Dispatch Box. Recent years have seen our SMEs struggling with reams of red tape when they attempt to trade with the rest of the world. Reporting this week has detailed the chaos and extortionate expense that small businesses in the agrifood industries have been dealing with since April's introduction of the common user charge. What concrete steps is the Minister taking to support and empower our small businesses to trade internationally?

Answer from Jonathan Reynolds

I thank the hon. Lady for her kind words. I recognise that the Liberal Democrat manifesto shows we have many common areas of interest, particularly on industrial strategy and trade. Under this Government, trade policy will match our domestic, economic and business priorities. We will be able to reset our relationship with the European Union because, to be frank, we are unencumbered by some of the internal politics of the last Government. We believe that we can make the most of opportunities around the world. Businesses tell me, as I am sure they tell every hon. Member here, that for many years, politics has been driving the agenda, rather than what businesses need. That will change, and has already begun to change.

Partly answered

Not addressed: The questioner asked for specific steps to support SMEs trading internationally, but the answer did not provide concrete measures or initiatives. It focused more on general statements about resetting trade relationships with the EU and changing the political focus from business needs.

How: Under Review, Working With Partners

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