Covid-19: Business Debate
Full Debate: Read Full DebateLord Leigh of Hurley
Main Page: Lord Leigh of Hurley (Conservative - Life peer)Department Debates - View all Lord Leigh of Hurley's debates with the Department for Business, Energy and Industrial Strategy
(4 years, 3 months ago)
Lords ChamberWhere workers already wear PPE for protection against non-Covid risks such as dust, they should of course continue to wear this. In relation to Covid-19 specifically, we have worked very closely with the medical community to develop this guidance and we will of course be guided by the science so that we do not put lives at risk in future.
My Lords, when I saw that there was to be a Statement on business, I hoped it would include further guidance on the financing of business. While I congratulate the Government on their immediate and world-beating assistance to companies through debt, it is not the long-term answer. Does the Minister agree that the next step in helping businesses will be to help them repay the debt and that, to do that, they will need equity funding? First, will he tell me what steps will be taken for modest amounts of equity to be invested in SMEs? Secondly—I draw your Lordships’ attention to my registered interests—can he tell me what the Government will do to help those companies that struggle not with raising money on public markets but with the costs of being on a public market, exacerbated by MiFID II and enormous regulation? This has meant that those markets are now shrinking, which will consequently make it difficult for UK plc to raise the equity it will need to flourish.
As usual, my noble friend raises very good points. I point him towards the future fund, which will be launched this month and will provide convertible loans ranging from £125,000 to £5 million to UK-based companies, subject to at least equal match funding from private investors. These convertible loans may be a suitable option for many businesses that rely on equity investment and are unable to access the CBILS. These companies will be vital in ensuring that the UK retains its world-leading position in science, innovation and technology.