Small Business: EU Exports

Debate between Baroness Quin and Baroness Bloomfield of Hinton Waldrist

Thursday 28th January 2021 Lords Chamber

[Baroness Quin]

To ask Her Majesty’s Government what steps they are taking to support small businesses affected by increased costs in exporting to the European Union.

[Baroness Bloomfield of Hinton Waldrist (Con)]

My Lords, small businesses can access trade support from UK Export Finance and the Department for International Trade, including export insurance and free local export champions. Business of all sizes in the UK can also access support services, including those by our free business support helpline, our growth hubs in England, which are expanding, and the British Business Bank. We will continue to review this support to ensure that UK businesses can keep trading successfully with the EU.

[Baroness Quin (Lab) [V]]

My Lords, many exporters are facing new and huge problems in exporting to the European Union, including increased costs, VAT charges and extra red tape. All of this has serious consequences for our economy, which is already hit by Covid. Did the Government realise that their deal with the EU was going to cause these problems? What are they going to do to ensure that our exporters can overcome them quickly?

[Baroness Bloomfield of Hinton Waldrist (Con)]

The noble Baroness highlights a very important point. The Government are not just providing advice, important though that is. Through the British Business Bank, the Government have helped improve and diversify the supply of finance to small businesses. Its start-up loans company provides loans of up to £25,000 and advice. HMRC provides grants for recruitment and training of specialist staff and the Government have a £20 million fund specifically to help SMEs adapt, including grants of up to £5,000. The short answer is that the Government recognise the issues small businesses are facing and are doing their best to alleviate some of them through various means.