BHS
Debate between Anna Soubry and Richard Fuller
Anna Soubry
May I thank the hon. Gentleman and say that it is a long time since I had the great pleasure of going to Kirkcaldy? It is a few years now, but I know it is a great town. As on many high streets, wherever they might be in the United Kingdom, the role of BHS has been critical. Unfortunately its fortunes have not been good for some considerable time. Perhaps that is the fault of us all for not paying a visit and buying in its shops—I suspect I am guilty of that from the time I used to go up to Kirkcaldy as a regular visitor.
The hon. Gentleman makes a good point about greed. It does not matter who it is, it is certainly not acceptable, whatever one’s faith may be—I am helpfully reminded by the Deputy Leader of the House that it is apparently a deadly sin. The hon. Gentleman makes a number of points. As I say, there are a number of investigations. We have to await the outcome and if we need to take further action, we will not flinch from doing that.
Richard Fuller (Bedford) (Con)
The questions at the heart of British Home Stores are not necessarily ones of legality; they are ones about the judgments made by people in positions of authority at British Home Stores and Arcadia and about the ethics of those entrusted with such responsibilities for those companies. My right hon. Friend will be aware that over the last few weeks Sir Philip Green’s reputation has come under substantial fire. Of course it is up to him to decide how he wishes to respond, but is she also aware of the concern of others in business at the collateral damage being done to people’s trust in business across the United Kingdom by the actions of the people involved at Arcadia and British Home Stores?
Anna Soubry
I could not agree more with my hon. Friend, and I thank him as ever for his valuable contribution. The reason I am choosing my words today with some care is not that I do not have my own views, based on what I have read, but it is important that we allow these investigations to take place before we rush to judgment. However, it is fair and right to say that, on the basis of what we have read in the newspapers, nobody could be in any way content with some of the allegations that have been made. They are very serious and my hon. Friend rightly makes the point that in effect that damages the reputation of all businesses, and that cannot be right either.
BHS
Debate between Anna Soubry and Richard Fuller
Anna Soubry
When any business is in difficulty, it has a knock-on effect throughout the whole supply chain. It is not simply about the difficult circumstances in which the immediate employers find themselves. I have already mentioned the creditors, but there are the connected attendant businesses too. It is not just about the immediate impact; it goes all the way through the chain, which is why it is important to stay positive and make sure and hope that a buyer comes forward.
Richard Fuller (Bedford) (Con)
It might be that, facing a large and growing pension deficit, the previous owner, when Retail Acquisitions came knocking on his door to purchase the business, laughed all the way to the bank. If the sale was done on the understanding that it was avoiding a responsibility for pension losses, that £1 he received was equivalent to 30 pieces of silver in his betrayal of the BHS employees and pensioners. There is a reputational question for Sir Philip Green to answer. Will the Minister write to him and ask him to respond to the questions raised in the House, and will she look acutely at the PPF to ensure that the original legislation is strong enough to avoid this unacceptable face of capitalism in the passing on of losses to the taxpayer?
Anna Soubry
My hon. Friend knows me of old, and he knows that while I support capitalism, I do not believe it should have anything other than a caring heart. I do not believe in unfettered free trade and all the rest of it, as one would expect from a Conservative on my wing of the party.
I want to agree with my hon. Friend that this is a very serious matter, and this Government take these sorts of issues and allegations extremely seriously. At the moment, of course, the regulator is involved. Let us see what conclusion the regulator comes to. My hon. Friend and anyone else listening to or indeed reading this debate, as no doubt Sir Philip Green will, should be absolutely assured that if there are any suggestions of impropriety, we will come after people. We believe in everybody in our society doing the right thing, especially when they hold people’s livelihoods pretty much in their hands.
DRAFT REGISTER OF PEOPLE WITH SIGNIFICANT CONTROL REGULATIONS 2016
DRAFT LIMITED LIABILITY PARTNERSHIPS (REGISTER OF PEOPLE WITH SIGNIFICANT CONTROL) REGULATIONS 2016
Debate between Anna Soubry and Richard Fuller(8 years, 2 months ago)
General CommitteesRead Full debate Read Hansard Text
Anna Soubry
It is a pleasure to serve under your chairmanship, Mr Rosindell. This area is covered by an uncontentious Act of the previous Government. There was much collaboration and co-operation between both sides and an important part of the legislation is now being introduced through regulations. I will not go into all the detail. My officials have kindly provided me with a speech that might, with a fair wind behind me, take me 15 minutes to read. In any event, the regulations are clear about what they set up and why. I want to deal with why the regulations are now before us. In 2013, the Prime Minister set out the UK’s ambition to improve corporate transparency and tackle criminal abuse of UK corporate entities. The regulations, which I am pleased we are considering today, underpin the detail of the register of people with significant control and bring that ambition one step closer to reality.
The register is the central pillar of the United Kingdom’s ambition to increase the transparency of UK corporate entities. It will record the people who own and control UK companies, limited liability partnerships and societates Europaeae—a little-used pan-European form of company. Information about the ownership and control of UK corporate entities will bring benefits for law enforcement, business, civil society and citizens. By making such information publicly available, free of charge, via a central register, the Government are setting the standard for open government that we are encouraging international partners to follow. It was therefore gratifying to see that the Dutch Government recently announced their intention to make public their beneficial ownership register.
The register of people with significant control, or PSC register, will record the details of those who own or control UK companies. There are five conditions for being a PSC: an individual holds, directly or indirectly, more than 25% of a company’s shares; an individual holds, directly or indirectly, more than 25% of the voting rights in a company; an individual holds the right, directly or indirectly, to appoint the majority of the board of directors; an individual has the right to exercise, or actually exercises, significant influence or control over a company; and, finally, the trustees of a trust or the members of a firm that is not a legal person would meet one of the first four conditions in relation to a company, or would do so if they were individuals, and have the right to exercise, or actually exercise, significant influence or control over the activities of the trust or the firm.
The regulations set out the detailed requirements for the PSC register and are self-explanatory, so, as I said, I will not go into the details. In short, they set out the scope of the register, the fees that a company can charge for providing copies of its own register, the information to be included on the register, the contents of warning and restriction notices, and how the protection regime will work for PSCs at risk of harm through their information being made public. The limited liability partnership regulations, or LLP regulations, apply the provisions contained in part 21A of the Companies Act 2006 and the companies regulations to limited liability partnerships with appropriate modifications.
Rather than going into all the details, I will happily take questions and answer them as best I can. The regulations are an invaluable part of improving corporate transparency in the United Kingdom.
Richard Fuller (Bedford) (Con)
My right hon. Friend says that she will answer questions, so I will get mine in early. Do these regulations come under the one-in, two-out rule for regulation, and can she give some advice on what the consequential changes to other regulation will be when she sums up the debate?
Anna Soubry
Of course I undertake to answer my hon. Friend’s question. As he will know, with all regulation we are absolutely determined—and indeed we do this—to check the cost, if any, to business and to mitigate it in any way we can; and in any event we have as an overarching principle the absolute determination to cut red tape and to reduce bureaucracy and regulation as much as we can.
Anna Soubry
I am afraid I cannot. I would be delighted if the figure that I had been given is wrong and the one that the hon. Gentleman has is correct. One thing that is for sure is that if I am wrong—if the figure I have been given is incorrect, as I hope it is—I will happily write to all members of the Committee to correct that. If the hon. Gentleman is right, that will be good news all round. Obviously, we are determined to make sure we keep the cost as low as possible. The regulations are serious and important, with the aim of tackling a genuine problem; it is sometimes a mark of their seriousness that such things cost money. However, I will sort that matter out.
Richard Fuller
Of course the Minister will come back with the answer, and I very much appreciate that. However, the Government’s objective over the next five years is to reduce the burden of regulation by £10 billion. So if the figure is close to the Minister’s number, and the matter is out of scope, it rather calls into question the veracity of the Government’s deregulation agenda. If we can have an extra £1 billion of regulation that is out of scope, while we are trying to get rid of £10 billion, that seems a matter of concern. Can the Minister assure the Committee that she will not only validate the number but consider the issue of what is in scope or out of scope about the regulations, and perhaps give us some advice on that?
Anna Soubry
I think the best thing I can do, although I am always happy to talk to my hon. Friend, is to write to him in more detail. We have saved a huge amount of money—around £5 billion—for businesses over the past five years through deregulation, and it is now accepted that we are one of the best places in the world to do business, specifically because we do not over-regulate in the way that we did. We have made huge strides. There is more to be done in the next five years, but we have made enormous progress, which is now being recognised. When I meet smaller businesses and, notably, the Federation of Small Businesses, they do not complain as they used to about the amount of regulation, but it is absolutely accepted that more can be done.
On the question asked by my hon. Friend the Member for Totnes, I am told that the Act introduced robust penalties to deter and sanction those who seek to misuse UK companies. Those penalties will, of course, support law enforcement tax authorities’ existing powers of investigation. The details, if I may be so bold, are in the Act, but if she would like me to point to them, I am more than happy to do so. However, as I have said from the outset, this is a serious piece of work due to the nature of the threat to the security of our nation, particularly in the business sector.
I agree with some of what the hon. Member for Nottingham North said, but it is often the case that the United Kingdom is doing all that it can, and this is a good example. Others will no doubt come and play, but we cannot force other countries to follow our example, any more than we can force companies registered in other countries to abide by our law. That has always been the case, and rightly so.
I hope that I have been able to answer right hon. and hon. Members’ questions. It is an important new regime for companies, increasing the transparency of who owns and controls UK companies. It is important to maintain the United Kingdom’s high standards of corporate trust. Anti-corruption is a key priority for this Government, and our Prime Minister has taken a serious personal interest in it. I know that there is, quite rightly, cross-party support for the issue.
Trade, Exports, Innovation and Productivity
Debate between Anna Soubry and Richard Fuller(8 years, 3 months ago)
Commons ChamberRead Full debate Read Hansard Text
Anna Soubry
I took that as read! I put it on the record that the First Minister for Scotland has tweeted her support. Frankly, I am not surprised. In this day and age, I think most people will just shrug their shoulders and say, “Yeah, whatever. Am I bothered?” Of course we are not. We celebrate what is, and should be, a happy day for my right hon. Friend.
Let us get on with the debate. The motion before us refers to the United Kingdom economy and economic growth. I wish to take a very quick trip down memory lane to put this debate into context, because that is important. The hon. Member for Dundee East (Stewart Hosie) talked about the Government’s record. I want to talk about the past six or seven months, but I also want to talk about the previous five years, notably to remind everybody of the situation we faced back in May 2010. It is important to remind everybody that at that time we were in the worst recession that our nation, the United Kingdom, had faced for 100 years: the biggest budget deficit in our peacetime history and over half a million more people on the dole. That was the situation that we on the Government Benches had to pick up: an economy brought to its knees and on the brink of bankruptcy from Land’s End to John O’Groats, and from London to Inverness and Bodmin. All across our nation, we saw a country on its knees.
To save us from that economic mire we had to take some very difficult decisions to control spending, reduce the deficit and rescue our economy. Those decisions, every single one of them, were opposed by the parties sitting on the Opposition Benches, notably Labour and the SNP. Each and every decision was opposed. How wrong they were. It is thanks to the hard work of the British people that our economic plan has worked and continues to work. The deficit is down by more than half, there are over 2.2 million more people in work, and there are over 900,000 more businesses. The United Kingdom has been the fastest-growing economy in the advanced world. That is a record of which Government Members are proud.
Scotland has been part of that success story. It is unfortunate that the hon. Member for Dundee East has just made us a long speech full of doom and gloom, trotting out this, that and the other and talking down the Scottish economy, because it is part of the United Kingdom economy. That is wrong and sad, because there is a success story.
Richard Fuller (Bedford) (Con)
Although the SNP spokesman spoke for over half an hour about trade, export, innovation and productivity, he did not once mention free markets, entrepreneurship or the power of deregulation. Is it not this Government’s priority to focus on those issues to ensure we can achieve the goals we are setting?
Anna Soubry
I absolutely agree with my hon. Friend; I could not agree more. There was lots of moaning and complaining, but no solutions, no ideas and no fresh ways of thinking—not one. It was all doom and gloom, and talking down our economy.
Anna Soubry
I have not seen that paper and I am not going to pretend that I have. I always view it as important not to comment on things that have not been read or on issues that might have been taken out of context. Perhaps I will drop the hon. Gentleman a letter, when I have had the opportunity to read the paper.
Richard Fuller
The Minister makes a good point about innovation. One change that the Treasury has made is to enable ISAs to be used to provide peer-to-peer lending. Will she therefore have some conversations with her colleagues in the Treasury about making it possible within ISAs to make equity investments to small private companies?
Anna Soubry
That is a very good point, and the straight answer is simply yes. If my hon. Friend would like to continue the conversation after this debate, I would be more than happy to do so.
This Government continue to encourage business investment in research and development through tax incentives. Take-up of this scheme continues to grow, with 18,200 companies claiming £1.75 billion of relief from £14.3 billion of innovative investment. In Scotland, there were 1,045 claims, giving a total relief of £55 million. That means more investment in R and D, more high-value jobs and greater productivity.
The Government continue to invest in our catapult network, and the first seven catapults are now operating from their established facilities with total public and private investment exceeding £1.6 billion over their first five years of operation. These include Offshore Renewable Energy in Glasgow and the Advanced Forming research centre in Strathclyde, which is part of the high-value manufacturing catapult. As we have taken the difficult decisions to fix Britain’s finances, we can afford to continue to invest in science and innovation, investing in Scotland’s future and helping to ensure Scotland punches above its weight.
That is the point. If we have a good, solid and sound economy that is growing, we will be able to do all this type of work. We will be able to spend taxpayers’ money to support our great British businesses and particularly the ones that are so innovative in their approach and in the work they do.
To conclude, Madam Deputy Speaker—
Richard Fuller
The hon. Lady is of course factually correct, but unfortunately that is like having a beautiful sunny day where someone consistently wants to put a cloud on the chart. This is a major and very significant change in the British economy. We should all be looking to the businesses that now have to pay the increase in wages to ensure that they are able to do so without it leading to unemployment. If we could co-ordinate our efforts around that, then, as she rightly says, we can think about the other level that we should move to. Let us join together, support what the Government have done, make sure that our businesses can deal with it, and then look to the next stage. I think there is common agreement across this House that the disparities have gone too far and now we are doing something about it.
The squeeze in the public sector is identifying new ways to improve productivity. We do not talk enough about that positive impact on the economy. Personally, I would be happy if the Secretary of State had accepted a larger reduction in the Department’s budget in doing his bit to get the deficit down, but I do understand that perhaps he is holding something back for later. Another positive on productivity is that the Government are focusing on the sharing economy, which our Committee is also considering.
On innovation, I am very pleased that the Minister said she would talk to the Treasury about looking at new ways in which tax policy can support equity investment in private companies, particularly involving individual savings accounts, as proposed in the excellent “High Growth Small Business” report launched by the hon. Member for Hartlepool.
May I tell the Department that I took to the previous Secretary of State the idea of a Bedford business fund? The idea is that people who care about a community—in this case, my constituency of Bedford—could put money into a fund to support the growth of businesses there. We do not have the advantages of Milton Keynes, Cambridge or Northampton, which have large businesses or science parks; we have to grow our own small businesses to create prosperity in our community. The idea of having a business fund in which people can invest tax-efficiently to grow businesses in their community could not just be followed in Bedford, but replicated across the country. I ask the Business Secretary to look at that again.
Building on the success of the Bedford business fund and having, happily, been re-elected in May, I am taking forward the idea of a Bedford community business school. In conjunction with Bedford College, there will be a series of courses over four weeks. Anyone in the community who is interested in starting a business can learn about public relations and marketing, and about accountancy and getting finance from business. Again, community business schools are a good idea that could be replicated across the country.
I want to make some points about the Department. I have already spoken about the potential for further reductions in its budget. I know that the Minister is a little more fond than I am of spending taxpayers’ money, but she is a true Tory and will look for efficiencies wherever she can. One thing we hear constantly from business is: “The Government do a lot of stuff, but where do I start.” Decluttering and providing some focus for what the Department does would be helpful.
May I make one specific suggestion? I understand that with the Treasury, through Her Majesty’s Revenue and Customs, people will be able to log on and see their own tax accounts. Why is it not possible with the Department for Business, Innovation and Skills for a company, with a company tax identification number, to be able to log on to a website and see in one place all possible ideas that are suitable for the business, tailored to the specific interests of the company? Through the tax identification number, the Department will know whether it is a large or a small company and what sector it works in. With today’s technology, the Department should therefore be able to provide, up front and quickly, the Government measures that are available to support them. On deregulation, the issue for many companies is not how much money is saved, but how much time is saved.
Anna Soubry
I find it amusing that my hon. Friend is now encouraging me to spend taxpayers’ money on such a service. It sounds like a great idea, but does he agree that the private sector could do it even better, particularly for small businesses? In effect, the website would be a one-stop shop where they could access all the various forms of support available to them. We do not need to use taxpayers’ money to achieve that.
Richard Fuller
The Minister is somewhat ingenious in suggesting that I want taxpayers’ money to be spent on such a website. The issue is not about the money, but about the access to the Department’s information, which is of course privileged information within the Government. If the Minister is today committing herself to force the Department to deal with private sector companies wishing to create such an access portal and giving them free rein to do so, I am sure private capital will flood in. However, that will require a commitment and it will require access, which is her decision, not mine.
Anna Soubry
I will think about the idea, because it has many attractions, although there may be data protection considerations. Why do we not agree to meet to have such a discussion and see what we can achieve?
Richard Fuller
I am looking forward to the Minister coming back to the House with a recommendation, and I will of course be happy to meet her when she has that recommendation. [Interruption.] People may say that is unfair, but the truth is that this is a very positive initiative. The one thing we know about the Minister is that when she sees a problem to be tackled, she goes for it, and heaven help anyone who stands in her way. I am highlighting the fact that this is an opportunity for her. She is the right person to go for it, and I will of course encourage and support her all the way.
The most important thing highlighted by the motion—unfortunately, I do not support it—is that SNP Members are bringing forward ideas on some of the most important issues affecting the wellbeing of our country. Even though Members of Parliament may be low on the list of people entrepreneurs want to call to get answers, SNP Members, as well as others who have spoken, have done a service to the House and I commend them for it.
Corporate Boards (Diversity)
Debate between Anna Soubry and Richard Fuller(8 years, 6 months ago)
Commons ChamberRead Full debate Read Hansard Text
Anna Soubry
I do not want more regulation. The hon. Gentleman would expect me, as a BIS Minister, to say that. However, he is absolutely right. If people do not look at their own institution, business or whatever to make this analysis—in my chambers, for example, we would look at our stats and our figures—then how do they know when there is a problem and where it might be? It is necessary for businesses to look at this.
The hon. Gentleman made some very powerful points. He had three asks. I hope he will forgive me if this sounds a bit wet, but I would like to not only take this away with me, but, most importantly, to meet him and the key players to look at it and advance it. The Secretary of State is from a particular background, and is no doubt the first person from that background in that role, so he will certainly have an interest in this, especially as he has a business background, as did his family.
Richard Fuller (Bedford) (Con)
In his speech at the Conservative party conference, the Prime Minister gave a very clear direction that he wanted change so that people could overcome issues about their names and so on. I am worried about who we can point to as examples for seven, eight, nine and 10-year-olds, and teenagers, in school in my constituency. That point was made by the hon. Member for Streatham (Mr Umunna). I am hearing very positive words from the Minister, but there has to be a bit more action. The hon. Gentleman said that there has been a mixture of carrot and stick. When the Minister has finished having her conversations and looking at the information, will she at least, short of quotas and regulation, look at what sticks can be used if progress is not made?
Anna Soubry
My hon. Friend has known me for long enough to know that I do not shy away from things. I am more than happy to look at the kinds of sticks that can be put in place to encourage action now. We are not going to wait for those 10-year-olds to get up to these levels; we have to sort it out now. I know, as a woman, that when somebody has “made it” they can become an incredibly powerful force.