Oral Answers to Questions

Andrew Griffiths Excerpts

Tuesday 1st May 2018 Commons Chamber

[Ben Bradley (Mansfield) (Con)]

2. What steps he is taking to support growth in the small business sector.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Andrew Griffiths)]

The British Business Bank supports over £4 billion of finance to over 65,000 small businesses. The start-up loans programme has further delivered more than 54,000 loans, totalling over £400 million. We are tackling late payments through the Small Business Commissioner, and 38 growth hubs across England provide access to information and advice. Through the industrial strategy we plan to unlock over £20 billion of investment in high-potential businesses, including through establishing a £2.5 billion investment fund.

[Ben Bradley]

I thank the Minister for his response. As in many parts of the country, Mansfield has struggled to support shops and other town centre businesses. Will he explain what action the Government are taking to support such businesses and to regenerate what were formerly bustling town centres?

[Andrew Griffiths]

I recognise the work that my hon. Friend has done to support businesses in his constituency. The Government have made 100% small business rate relief permanent while increasing the threshold of the relief, taking 600,000 of the smallest businesses out of business rates. We have introduced the employment allowance, giving employers up to £3,000 off their national insurance contribution, and we have established the Future High Streets Forum to provide businesses with Government leadership to better enable our town centres to grow.

[Melanie Onn (Great Grimsby) (Lab)]

I recently visited the food manufacturer Scratch in my constituency, which is just launching a new dough-free pizza. It has taken on an additional 25 members of staff and has asked if more could be done to support it, particularly around reducing its business rates, which would go a long way to supporting it and the local high street.

[Andrew Griffiths]

I recognise the hon. Lady’s point. It is good to see that kind of investment and growth in small businesses. We are investing in apprenticeships and skills—44% of apprenticeship participation is in small companies—and, as part of our industrial strategy, we are establishing a technical education system that rivals the best in the world. We are also investing £406 million in subjects such as maths and digital and technical education to support the kind of small businesses she talks about.

[Helen Whately (Faversham and Mid Kent) (Con)]

Microbusinesses have told me that they are struggling to get their voice heard—for instance, on their concerns about implementing data protection legislation and the implications of Brexit. What is my hon. Friend doing to make sure he hears and understands the concerns of microbusinesses?

[Andrew Griffiths]

Every week, the Secretary of State meets representatives of the business community from across the country, and I hold a forum with small businesses once a month to ensure that the Government are finely attuned to their needs. The Department is determined not only to understand the issues facing small businesses in our country, such as those my hon. Friend raises, but to ensure that legislation is fit for purpose.

[Dr Lisa Cameron (East Kilbride, Strathaven and Lesmahagow) (SNP)]

The all-party group on disability, which I chair, has published an inquiry report highlighting the fantastic contribution of entrepreneurs with disabilities, but they still face many challenges, such as in accessing finance. Will the Secretary of State meet the all-party group to discuss this issue and ensure a truly inclusive economy?

[Andrew Griffiths]

I thank the hon. Lady for the question and the great work the all-party group does. I absolutely recognise that encouraging people with disabilities to start their own businesses and contribute in this way is good not only for the British economy but for them. I would be delighted to meet her to discuss the matter further and to see what we can do to support those businesses, particularly through things such as the British Business Bank.

[Bill Esterson (Sefton Central) (Lab)]

Project bank accounts ring-fence the money for suppliers in construction contracts yet were not used by the Government with Carillion. As a result, 30,000 mostly smaller businesses are likely to lose money, and some will struggle to survive, so will the Minister confirm that the Government will now use project bank accounts to protect businesses and jobs in their own supply chain and guarantee there is no repeat of the Carillion fiasco?

[Andrew Griffiths]

The hon. Gentleman will know that the Government took swift action, led by the Secretary of State, when Carillion collapsed, to ensure we understood the issues relating to the construction industry, including by setting up a forum with trade representatives. He will also be aware that we consulted on project bank accounts in the construction industry. That consultation finished just a few weeks ago. We are considering the responses and will respond shortly.

[Stephen Gethins (North East Fife) (SNP)]

3. What estimate he has made of the number of non-UK EU nationals who work for small businesses.

[David Linden (Glasgow East) (SNP)]

7. What estimate he has made of the number of non-UK EU nationals who work for small businesses.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Andrew Griffiths)]

Non-UK EU nationals account for 7% of total UK employment. Scottish businesses have had the opportunity to feed into the Migration Advisory Committee’s analysis of the role of EU nationals in the UK. We appreciate the strong contribution that EU nationals make to small and large businesses, and we have already agreed to protect the rights of EU citizens in the UK under our withdrawal agreement with the EU.

[Stephen Gethins]

In my constituency, fruit and veg producers and the tourism industry rely heavily on EU seasonal workers. Does the Minister recognise the damage that continued uncertainty is doing to those businesses? Two years on from the referendum, when will they get a bit more certainty so that we can maintain those EU seasonal workers who contribute so much to our economy?

[Andrew Griffiths]

I can reassure the hon. Gentleman that there should not be uncertainty. We have made it clear that we do not regard the referendum result as a vote to pull up the drawbridge. The United Kingdom will remain an open and tolerant country which recognises the valuable contribution that migrants make, and welcomes those with the skills and expertise that will make our society even better. The Government commissioned the Migration Advisory Committee to report on EU patterns of migration in different sectors and different parts of the UK, and it will do so by September 2018.

[David Linden]

Analysis shows that EU citizens contribute £4 billion a year to the economy in Scotland. We see that happening in small businesses along Shettleston Road, for example. Does the Minister agree that the devastating effect of free-movement restrictions will have a colossal impact on small businesses in Shettleston and in Scotland as a whole, and will he support the calls from the Scottish Trades Union Congress for immigration to be devolved to Scotland?

[Andrew Griffiths]

Our position on immigration policy and who should be responsible for it is clear, and has not changed. Since the referendum we have been engaging widely with, among others, the devolved Administrations and businesses in Scotland to ensure that we fully understand the requirements, but let me make it absolutely clear that the Government understand the issues of businesses and will ensure that the system works for them.

[Mr Nigel Evans (Ribble Valley) (Con)]

My hon. Friend is no stranger to the Ribble Valley. He knows that it is a jewel in the crown for the hospitality trade, which employs a great many EU citizens. Does he agree that post-Brexit there will still be many opportunities for people in the EU to come to the United Kingdom and work in the hospitality trade?

[Andrew Griffiths]

I can report that I have experienced the hospitality in the Swan with Two Necks, and I recommend it to the House.

As my hon. Friend will know, the Migration Advisory Committee is looking at exactly the issue that he has raised, but he is absolutely right: EU migrants play a massive role in our hospitality industry, and the hospitality industry is one of the reasons people visit this country.

[Kirstene Hair (Angus) (Con)]

Does my hon. Friend agree that Brexit provides a welcome opportunity for us to attract talent to our shores from all countries, not just those in the EU, and can he assure me that the Government remain committed to ensuring that all businesses have the access to the workforce from overseas that they need?

[Andrew Griffiths]

Absolutely. We have a competitive workforce here. The economy is thriving, partly because of the contribution made by the people to whom my hon. Friend has referred. I particularly commend her for the work that she has done in relation to the soft fruit seasonal workers scheme.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

The Federation of Small Businesses says that the right of EU staff to remain in the UK is vital. In Scotland, 45% of tourism and leisure businesses rely on EU staff for their workforce. They fear that they will not be able to recruit for their future needs, and their fear is heightened by the possibility that the immigration skills charge—which is currently up to £1,000 a year—will be applied. Can the Minister categorically assure employers that they will not be subjected to any charge for EU workers post-Brexit?

[Andrew Griffiths]

We will set out in due course the system and the scheme that will operate post-Brexit. I can, however, assure the hon. Gentleman that I regularly meet representatives of the Federation of Small Businesses, and we will ensure that the workforce is there for those businesses.

[Drew Hendry]

The Scottish Affairs Committee, the Home Affairs Committee in its report, and the Economics Committee in the House of Lords all see the sense of a differentiated immigration system for Scotland. Can the Minister confirm that he, too, accepts that there is a clear case for a policy that recognises the different needs of businesses in Scotland?

[Andrew Griffiths]

This Government well understands the needs of businesses both throughout the UK and specifically in Scotland. As the hon. Gentleman will know, the Home Office will shortly present further details of the scheme that is to be introduced.

[Daniel Zeichner (Cambridge) (Lab)]

4. What progress he has made on implementing the good work plan.

[Frank Field (Birkenhead) (Lab)]

24. What progress his Department has made on implementing the recommendations of the Taylor review of modern working practices.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Andrew Griffiths)]

We are proceeding with work on 52 of the 53 review recommendations made by Matthew Taylor, and we are currently engaged in consultations on how best to implement those measures. We are committed to ensuring that we protect and enhance workers’ rights in the modern economy, and to legislating for that purpose. We will ensure that employment law and practices keep pace with modern ways of working, while striking the right balance between flexibility and worker protection.

[Daniel Zeichner]

The Minister may be aware that workers at McDonalds are taking strike action in Cambridge today. One of them, Sheila, told the Cambridge News at the weekend that although she has worked for 18 years, her work is insecure, she never knows what hours she will work, and fresh fruit and vegetables are luxuries. What has the good work plan to offer Sheila?

[Andrew Griffiths]

Matthew Taylor set out in the good work plan how we can further enhance the protections for workers such as Sheila. There is a huge amount of day-one protections, and we are looking at what we can do with flexible working and zero-hours contracts to give greater certainty and security to workers exactly like Sheila.

[Justin Madders]

The Government response to the Select Committee report on a modern employment framework stated:

“The Government wholeheartedly agrees that strong action should be taken against employers who repeatedly ignore both their responsibilities and the decisions of employment tribunals.”

Those are fine words, but if they are to be meaningful the Government must back them up with action and put in place rules to prevent or deter repeat offenders from bidding for public sector contracts; will they do that?

[Andrew Griffiths]

The Government recognise that unfortunately some employers continue to offend repeatedly in this way. We are looking at what further measures we can take in the work plan, and more widely in the work of the Department for Business, Energy and Industrial Strategy, to ensure that such repeat offenders are clamped down on.

[Frank Field]

Given the work that the Business, Energy and Industrial Strategy Committee and the Work and Pensions Committee have done on the gig economy, will the Government undertake to ensure that, when they introduce a Bill based on the Taylor report, we will have a chance to stage pre-legislative hearings?

[Andrew Griffiths]

We have worked closely with the right hon. Gentleman’s Select Committee, and, as he knows, we greatly value his contribution. We are consulting on the work of Matthew Taylor, and I pledge to the right hon. Gentleman today that we will work hand in hand with his Committee to ensure that it properly scrutinises that proposed legislation as it comes forward.

[Mark Pawsey (Rugby) (Con)]

The world of work is changing as businesses respond to changes in customer demands. Does the Minister agree that many workers enjoy and appreciate the flexibility of the freedom to choose when they wish to work?

[Andrew Griffiths]

My hon. Friend is absolutely right. New technologies have provided a huge number of new and exciting work opportunities for people, but we also want to ensure that we not only enhance and capture that potential, but offer protections for those working in the gig economy, to make sure they are not disadvantaged.

[Marsha De Cordova (Battersea) (Lab)]

8. What steps his Department is taking to support employees of Jaguar Land Rover facing job losses.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Andrew Griffiths)]

The Government have moved swiftly to support businesses, establishing the Carillion taskforce to ensure the co-ordination of support for firms affected by Carillion’s insolvency. This has included extra support from the banks of nearly £1 billion; British Business Bank supports to the tune of £100 million; and works with Her Majesty’s Revenue and Customs to ensure firms have advice and guidance through the business payment support service.

[Eleanor Smith]

Since my last question about Carillion, 239 jobs have now been lost in Wolverhampton, which is a huge loss to our city. The Express & Star, a local newspaper in Wolverhampton, has said that hundreds of suppliers and subcontractors will be left unpaid, which means more job losses. How does the Department plan to provide support for those businesses and their workers?

[Andrew Griffiths]

The Government recognise that there will be an impact on the supply chain and on lots of small businesses that supplied Carillion. That is why we acted quickly to ensure that the banks were aware of those situations and the pressures that would be put on those businesses, to make sure the support was in place, with access to loans and finance, to ensure that we limit the impact as much as is possible. The hon. Lady will know that, so far, 11,450 jobs have been protected in the Carillion network, and we are doing more to ensure that we protect the rest.

[John Cryer (Leyton and Wanstead) (Lab)]

The Minister will be aware that Carillion regularly contravened the prompt payment code without actually acting illegally. Is it not time to examine the possibility of giving the code a statutory basis, so that in future cases there could be prosecutions?

[Andrew Griffiths]

The hon. Gentleman makes a very valid point. We want the prompt payment code to be fit for purpose and for it to do what it says on the tin. That is why I am in discussions on the prompt payment code and why the Chancellor said in the spring statement that we would consult on late payments. He wanted to end the scourge of late payments, because this is so important for small businesses up and down the country.

[Matthew Pennycook (Greenwich and Woolwich) (Lab)]

15. What recent assessment he has made of the potential merits of statutory regulation of the district heating sector.

--- Later in debate ---

[Liz Twist (Blaydon) (Lab)]

18. What steps he is taking to support the retail sector.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Andrew Griffiths)]

The retail sector is a vital part of the UK economy and we want it to thrive. In March, as part of our industrial strategy, I created the Retail Sector Council. Through that group, Government and industry will work together to contribute to the sector’s future direction, to boost its productivity and economic health.

[Liz Twist]

The retail sector is hugely important to my constituency, from the Metrocentre through to the small fruit and veg shops on the high street. Given that the retail sector is the UK’s largest industry, will the Minister explain the rationale behind the Government’s decision to do so little for the sector in the industrial strategy?

[Andrew Griffiths]

The hon. Lady just is not correct. The Government recognise the importance of the high street and the retail sector, which is why we have provided more than £18 million in dedicated funding. It is also why in the 2017 autumn Budget we announced measures worth £2.3 billion over five years to cut business rates and improve the system’s fairness, which will support the retail sector.

[Geraint Davies (Swansea West) (Lab/Co-op)]

19. What steps he is taking to ensure that investment in renewable energy contributes to the achievement of the 1.5° C global warming limit set out in the Paris climate change agreement.

--- Later in debate ---

[Kevin Brennan (Cardiff West) (Lab)]

T8. May I congratulate the Under-Secretary of State for Business, Energy and Industrial Strategy, the hon. Member for Burton (Andrew Griffiths), on the recent birth of his daughter? In doing so, I remind the House that, as an office holder, he was unfortunately unable to take up shared parental leave—at least, that is certainly what he told the media. Does he have any empathy with people who cannot take up shared parental leave, and will he extend the provision to allow families who are working freelance, particularly in the creative industries, to get the flexibility they need to maintain their careers?

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Andrew Griffiths)]

I thank the hon. Gentleman for his good wishes. Having just returned from my paternity leave, I reassure him that, although I am not legally allowed to take shared parental leave, the Government are very supportive of Ministers being able to take up such provisions. The Government want more families to benefit from the joy that comes from shared parental leave, which is why we have invested over £1 million in an advertising campaign to increase take-up.

[Jeremy Quin (Horsham) (Con)]

T6. How are the Government supporting the growth and full geographic spread of degree-level apprenticeships?

--- Later in debate ---

[Laura Smith (Crewe and Nantwich) (Lab)]

Have the Government made any assessment of whether social care providers will go bankrupt this year due to the ruling on sleep-in shifts and the minimum wage, and whether this will have any impact on social care? If so, will they provide that assessment to the House?

[Andrew Griffiths]

The Government are well aware of the challenges involved in sleep-in legislation and the national minimum wage and are working closely with providers. We are also in discussions with the European Commission and will bring forward plans in future.

[Nicky Morgan (Loughborough) (Con)]

When will we see the review of Companies House procedures that I mentioned in my Adjournment debate on 20 November last year, which covers people who transition from one sex to another, whose records are sometimes left on the Companies House register? The previous Minister agreed to look at that.

[Andrew Griffiths]

I thank my right hon. Friend for that very important question. I remember the Westminster Hall debate that she had on this issue. The Government are minded to protect the rights of the transgender community. She will know that I recently brought forward a statutory instrument to allow directors to remove their addresses from the Companies House register in order to protect safety. I would be delighted to work with her to see what we can do to provide greater protections for the transgender community in this area.

[Jo Swinson (East Dunbartonshire) (LD)]

The industrial strategy rightly sets out opportunities arising from the new technology and STEM—science, technology, engineering and maths—sectors but says little about the increasing importance of skills that are unique to human beings, such as care. Does the Secretary of State recognise that part of our answer to increasing automation should be expanding employment in the care sector and the value we attach to it? If so, will he start treating this as a strategic priority?