Industrial Strategy

Alex Sobel Excerpts

Wednesday 18th April 2018 Commons Chamber

[Rebecca Long Bailey]

I thank the hon. Lady for her comments, which are rather illuminating. I wonder whether she could share with the House how her region managed to secure those additional resources, so that we could let our colleagues know about it. That simply does not seem to be the case right across Britain.

Now, there was also a clear failure in business support. The Government’s proposals recognised that we need both public and private investment. Similarly, the Labour party has pledged to mobilise £250 billion of lending through a national investment bank and a network of regional development banks. However, the Government’s proposals fall far short of that. I said in the House last year that sector deals, a £2.5 billion investment fund incubated in the British Business Bank and yet another review into encouraging SME growth were simply not good enough. There was a clear failure to recognise the impediments that many businesses face when attempting to access finance and, indeed, there was a failure to protect businesses more generally.

[Alex Sobel (Leeds North West) (Lab/Co-op)]

Does my hon. Friend agree that we lost a lot of support after 2010 when Business Link was shut and the regional development agencies were closed down? Business support has gone backwards. We need to take it forwards, but we have lost eight years.

[Rebecca Long Bailey]

I completely agree. Unfortunately, what I see as I travel around Britain is a bit of a postcode lottery in business support, and the Government need to address that urgently.

As I said, the Government failed to recognise the impediments facing many businesses and to outline any more general protections. That could not have been displayed more clearly than in the Government’s handling of the Carillion scandal, where key requests by business organisations to mandate 30-day payment to suppliers and instigate the use of project bank accounts were effectively ignored. The Government simply looked on as Carillion and other big players like it abused the businesses that they contracted with and passed on financial liability and risk down the supply chain. Labour pledged to mandate 30-day prompt payment and the use of project bank accounts for all Government projects, and I will be grateful if the Minster will do the same today when summing up.