Commons Sense

House of Commons · Westminster Hall

Family Businesses: Contribution to Local Communities

20 December 2022 · 7 other contributors · 13,217 words

Opened by John Stevenson Con Carlisle

Responding minister: Kevin Hollinrake

Business & Trade

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

Read the full transcript on Parliament.uk

At a glance

John Stevenson raised concerns about family businesses: contribution to local communities in Westminster Hall. A government minister responded.

Key points

  • The hon MP is concerned about the challenges faced by family businesses, including succession planning and financing growth.
  • Family businesses account for nearly 14 million employees in the UK, over 50% of all private sector employment and 44% of GDP.
  • The hon Member asks for more Government recognition of the challenges faced by family businesses and suggests supporting measures for growth and succession planning.

Key requests to Government

The hon. Member asks for more Government recognition of the challenges faced by family businesses and suggests that the Government could do more to support these businesses in terms of growing, understanding their nature, ensuring finance and investment, providing training opportunities, offering general advice on succession planning, and promoting a positive profile for family businesses.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

John Stevenson Con Carlisle

The hon. MP is concerned about the challenges faced by family businesses, including succession planning and financing growth. He highlights that family businesses account for nearly 14 million employees in the UK, over 50% of all private sector employment, contributing to approximately 44% of GDP. The MP emphasises the importance of recognising the unique strengths of family businesses such as resilience during economic downturns, long-term investment perspectives, and community involvement.

Other contributors (7)
  • Jamie Stone Lib Dem Caithness, Sutherland and Easter Ross

    Emphasized the importance of family businesses in local economies through his personal experience. He highlighted their role in supporting local banks, solicitors, estate agents, and shops, contributing to local government and community reputation. During the pandemic, some businesses were inventive and innovative, such as food outlets offering delivery services. The speaker suggests that civil servants could benefit from studying these examples to understand British inventiveness.

  • Jim Shannon DUP Strangford

    Highlighted the importance of family-run businesses in Strangford, mentioning examples such as N.G. Bell & Son and Wardens of Newtownards that have been serving the community for decades. Emphasized loyalty and stability as key qualities contributing to their success. Quoted figures showing 74% of Northern Ireland companies are family-run.

  • Kevin Foster Con Torbay and South Devon

    Acknowledged family businesses' loyalty during the pandemic, noting that tourism businesses in Torbay ensured staff were paid by forgoing their own wages. Family businesses play a significant role in Torbay's economy, contributing to job creation and community engagement. Despite the positive impact, challenges such as local council decisions affecting business operations and disincentives like high business rates hinder their growth. Kevin Foster highlighted specific examples of family-owned businesses facing difficulties due to changes in local governance and economic pressures.

  • Lisa Cameron SNP East Kilbride, Strathaven and Lesmahagow

    Thanked the hon. Gentleman for securing an important debate on family businesses and highlighted Glencairn Crystal, a local business that won the Queen's Award and developed internationally renowned whisky glasses. Asked if family businesses had a key role in reducing the disability employment gap and promoting disability inclusion.

  • Margaret Ferrier SNP Rutherglen and Hamilton West

    Mentioned Equi's Ice Cream in her constituency, which has been operating for a century and is sold in various supermarkets including Morrisons, Co-op, Asda, and even in Texas. Cafés are important businesses for local communities in Rutherglen and Hamilton West. The hon. Member is asked if they agree that small, family-run cafés contribute significantly to the atmosphere of local towns.

  • Seema Malhotra Lab Co-op Feltham and Heston

    She congratulated the hon. Member for Carlisle on securing the debate, highlighting the significant role family businesses play in local economies. She mentioned specific examples from her constituency such as Flowers by Eva's and Heston Hyde hotel, emphasizing how these businesses contribute to community prosperity and well-being.

  • Wendy Morton Con Aldridge-Brownhills

    Agreed that small businesses contribute to the local community by supporting events such as Christmas tree festivals. Morton thanked her colleague for bringing forward the debate and highlighted the importance of family businesses, especially during challenging times. She shared personal experiences starting a business with an enterprise allowance and emphasised the critical role banks play in supporting small enterprises. Morton also praised various local businesses across Aldridge-Brownhills, such as Jennifer Ashe Funeral Directors and Herbarium Florist, for their resilience and contribution to the community. She suggested that Family Business Week should be highlighted more prominently to celebrate these contributions.

Government Response

Kevin Hollinrake

The Minister thanked the MP for Carlisle for initiating a debate on family businesses, noting their importance to communities. He shared his own experience with a family business that started in 1992, emphasizing the role of women in such enterprises. He acknowledged global challenges faced by businesses and highlighted government support measures including the Energy Bill Relief Scheme (EBRS) expected to cost around £25 billion for mitigation. The Minister also mentioned increased employment allowance, national insurance reduction, and business rate relief worth about £13.6 billion, as well as incentives like zero-rated energy on energy-saving products and subsidies for management skills improvement schemes.

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