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Family Businesses: Contribution to Local Communities
20 December 2022
Lead MP
John Stevenson
Carlisle
Con
Responding Minister
Kevin Hollinrake
Tags
EconomyTaxationEmploymentBusiness & Trade
Word Count: 13217
Other Contributors: 7
At a Glance
John Stevenson raised concerns about family businesses: contribution to local communities in Westminster Hall. A government minister responded.
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:
Lead Contributor
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.
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
Government Response
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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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.