Small Business Commissioner: Late Payments

Debate between Viscount Colville of Culross and Lord Callanan

Tuesday 7th December 2021 Lords Chamber

[Viscount Colville of Culross]

To ask Her Majesty’s Government what plans they have to extend the powers of the Small Business Commissioner to deal with late payments for small businesses and freelancers by (1) allowing the Commissioner to deal with complaints against companies with fewer than 50 employees, and (2) requiring the chief executive officers and chairs of offending companies to respond to the Commissioner.

[The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy (Lord Callanan) (Con)]

My Lords, we have consulted on extending the scope and powers of the Small Business Commissioner, including extending their scope to deal with complaints against a small business by a small business, and the power for the commissioner to compel information from a business in relation to a complaint. We are working through the impact of any changes with the new commissioner to better understand the resourcing implications of each option and the likely impact on businesses.

[Viscount Colville of Culross (CB)]

My Lords, three-quarters of self-employed people suffer from late payments; many of them do not get paid at all and the situation is getting worse. It adversely affects their business and a lot of their valuable time is taken up with chasing unpaid invoices. Why, on such an urgent issue, when the consultation finished last December, have the Government still not come forward with proposals? When will proposals be forthcoming?

[Lord Callanan (Con)]

The noble Lord makes a good point, and I very much sympathise with his concern. However, we received a lot of replies to the consultation and are currently working through the options. He will be aware that any proposals in this area will require primary legislation and have resourcing implications for the Small Business Commissioner, so we are currently working through all the options.

Self-employment Income Support Scheme

Debate between Viscount Colville of Culross and Lord Callanan

Tuesday 5th May 2020 Lords Chamber

[Lord Callanan]

I thank my noble friend for his question. Yes, as well as relaxing the minimum income floor, we have increased the standard rate of universal credit and working tax credit for this year by around £1,000. We have increased the local housing allowance, which is worth something like £600 in people’s pockets. We have also redeployed staff to the front line and therefore temporarily suspended the recovery of some government debts such as tax credits, benefit overpayments and social fund loans. We stand ready to take additional measures if they are required.

[Viscount Colville of Culross (CB)]

I declare an interest as a freelance series producer working for Netflix and the Smithsonian Channel. The current SEISS creates considerable concern for large numbers of freelancers who operate under a personal services company and are therefore not covered. Is it not possible for HMRC to distinguish between PSC-derived dividends and other dividend income, which could be verified through an online HMRC portal?

[Lord Callanan]

The Chancellor has referred to this difficulty a number of times. We are satisfied that the system as it currently operates is the best one at the moment, but as I said in response to an earlier question, we keep all these things constantly under review and will reflect on what the noble Viscount has said.

Covid-19: Employment Support

Debate between Viscount Colville of Culross and Lord Callanan

Thursday 19th March 2020 Lords Chamber

[Lord Callanan]

The noble Lord speaks with great authority on these matters. This might be a small point, but I agree with him that it is important. Actually, within my ministerial portfolio I have responsibility for the Insolvency Service, although not for the Treasury and the guarantees that it will provide. I take on board my noble friend’s point and will make sure that it is conveyed to the Chancellor. My noble friend’s intervention is welcome.

[Viscount Colville of Culross (CB)]

I declare an interest as a freelance series producer working at Raw TV making content for CNN. The Minister was asked about coverage for the self-employed and freelancers who have been made unemployed and he said that he was looking at that and wanted it done properly. However, these people have no prospect of work at the moment. Their income has suddenly stopped, and their bills have not. Is it not possible very quickly to put in place an emergency fund, as has happened in other countries, and at the very least to extend statutory sick pay to all workers affected by Covid-19? Surely that could be done very quickly.

[Lord Callanan]

I think, again, the noble Lord makes a very good point. We have of course already announced extensions to statutory sick pay and the qualifying period. His points are well made and echo the points made earlier about freelancers. All the different sectors of the economy need to be looked at. We will do whatever it takes. We will put in place a comprehensive package and will announce details of that as soon as we are able to.