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Business Confidence
15 October 2024
Lead MP
Mims Davies
East Grinstead and Uckfield
Con
Responding Minister
Gareth Thomas
Tags
EconomyNorthern Ireland
Word Count: 8318
Other Contributors: 10
At a Glance
Mims Davies raised concerns about business confidence in Westminster Hall. A government minister responded.
Key Requests to Government:
I ask the Minister to reassure businesses that the Government understands the impact of instability on them and their communities. What action will the Government take about Crawley college shutting down engineering places as we strive for a new future?
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
I am concerned about the impact of inflation and tax changes on businesses, particularly in my constituency. The Institute of Directors economic confidence index has fallen to minus 38—the lowest since December 2022, with business investment intentions dropping sharply since July. A survey by the Institute of Chartered Accountants in England and Wales cites tax as the chief concern for business leaders. I received a letter from an agricultural business expressing worry about financial support being reduced or slashed, threatening livelihoods.
Clive Jones
Lib Dem
Wokingham
Jones highlighted a decline in new business births per 10,000 people and a decrease in working-age population in Wokingham. He questioned the regulatory burden on businesses to export and mentioned that small and medium-sized companies face challenges due to chaos and instability under the Conservative government. Jones asked for support for small businesses through abolishing business rates, enhancing trade relationships with Europe, securing a western railway link to Heathrow airport, and meeting with the Thames valley chamber of commerce.
Hendon
Asked the hon. Member to give way during her speech, although no detailed content from his intervention was provided.
Helen Grant
Con
Maidstone and Malling
Farmers in Maidstone and Malling are experiencing tough conditions, with business confidence at a low. She believes reducing red tape and regulation could improve their situation.
James Frith
Lab
Bury North
Frith intervened, praising the Labour Government for its commitment to business investment after pledging billions of pounds at a recent summit, arguing that this shows confidence in their partnership with businesses. Mr. James Frith intervened to ask the Minister about ensuring that small businesses benefit from the investment announced, emphasizing the importance of this aspect for small business confidence.
James McMurdock
Ind
South Basildon and East Thurrock
He expressed concern about the housing crisis in Basildon and the impact of the £1.5 billion investment scandal on Thurrock, noting that servicing this debt consumes 40% of its operating budget. He also criticised the decision to delay the lower Thames crossing project despite significant planning efforts. McMurdock highlighted DP World's importance for local businesses but was dismayed by the language used towards them and the threat posed to a £1 billion project. He called on the government to use more professional language when dealing with major industries.
Jerome Mayhew
Con
Broadland and Fakenham
Mr. Jerome Mayhew criticized the Labour government's impact on business confidence, citing remarks by Andy Haldane about fear and uncertainty among consumers, businesses, and investors. He highlighted that firms are holding back from employment due to budget fears and increased sales of shares by directors as businesses express concern over capital gains tax and inheritance tax relief.
Jim Shannon
DUP
Strangford
Small businesses were hit hardest by post-covid recovery challenges and the rise in living costs is making it difficult to compete with online competitors. Effective regulation and support for traditional businesses are needed to maintain confidence.
Robin Swann
UUP
South Antrim
Robin Swann highlighted the challenges faced by small and medium businesses in Northern Ireland due to the Windsor framework and the EU's GPSR regulation, which adds bureaucracy and cost. He cited an example of a business that needs to comply with regulations for over 60k items on Amazon before December 13th, affecting their ability to sell across the UK. Additionally, he mentioned that Intertrade UK and the monitoring panel have not been established despite promises from the Secretary of State. Mr. Robin Swann intervened to ask the Minister what actions can be taken in the next few weeks to provide assurance for small businesses in South Antrim regarding their online presence and sales into the UK market.
Saqib Bhatti
Con
Meriden and Solihull East
Saqib Bhatti stressed the importance of business confidence in maintaining economic growth. He noted that businesses are currently in a holding pattern due to uncertainty under the Labour Government, citing a dip in the Institute of Chartered Accountants' Business Confidence Monitor. He also pointed out potential negative impacts on investor sentiment if there is an increase in capital gains tax and national insurance.
Sarah Gibson
Lib Dem
Chippenham
She welcomed the international investment summit and the Government's industrial strategy but highlighted concerns about the lack of a rural economy growth strategy. She mentioned that 14% of manufacturing occurs in rural areas, with significant specialisation in food processing and equipment manufacturing. Rural areas produce 70% of wind energy and face infrastructure challenges such as planning delays and poor digital and transport networks.
Government Response
Gareth Thomas
Government Response
I thank the hon. Member for his earlier remarks and his intervention. Let me be clear that my Department will continue to work with local partners in Northern Ireland, including InterTradeIreland, to develop and deliver our trade and industrial strategies. If the hon. Member wants to speak to me, I would be happy to help the small businesses that have written to him to join up with the support available in Northern Ireland.
Members across the House will be pleased that there is good news on growth. We are determined to make it simpler for companies to relocate to the UK through a new corporate re-domiciliation regime, which I am sure will strengthen our position as a global business hub. We have announced a business-boosting lift to the thresholds on company sizes, which means we will have new legislation by the end of the year reducing the burdens on start-ups and SMEs, saving them nearly a quarter of a billion pounds.
Our industrial strategy will inject capital into eight high-productivity, high-export, high-investment sectors in which the UK has a significant competitive advantage: financial services, professional and business services, clean energy industries, digital and technologies, advanced manufacturing, life sciences, creative industries and defence. Above all, our industrial strategy will show that we are listening and responding to the needs of businesses.
The total investment pledged by international and British firms, both in the run-up to and during the summit yesterday, now stands at an estimated £63 billion, which will help ensure that 38,000 jobs are created. I would gently suggest that that is a resounding vote of confidence in both the UK's economy and the Government's growth mission.
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About Westminster Hall Debates
Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.