Small Businesses

Baroness Byford Excerpts

Tuesday 3rd February 2015 Lords Chamber

[Baroness Byford (Con)]

My Lords, I thank my noble friend Lord Risby for securing this Question for Short Debate. I will not repeat the figures that he gave at the beginning but I agree with him that Britain is open for business. I have a farming business in Suffolk, which would be considered small; as my noble friend will know, more than 50% of small businesses are based in rural areas.

The Government should be congratulated on the way in which they have encouraged small business. The Autumn Statement announced some £400 million through the venture capital funds investment and some £500 million through new bank lending and through the enterprise and financial guarantee scheme, which required 75% of bank loan, with the lenders having to put up 25%. I could go on but I will not.

I turn quickly to apprentices, because the growth of small businesses can be enhanced by young people. Again, the Government have put an allocation of £170 million aside for youngsters between the ages of 14 to 16 and between the ages of 16 and 24. That encourages youngsters to get involved in business and to go on from there and, it is hoped, to become involved in small businesses in their own right. In hindsight, nearly 100 years ago, my father-in-law, who was a farmer’s youngest son, set up in Leicester, with two machines and two men, employed in the sock business; he eventually employed just under 2,000 and exported some 50% of all the socks he made. Exports are hugely important to this country and, indeed, to small businesses. Although others have not touched on it, I hope it is something that the Minister will be able to reflect on.

Secondly, as has been referred to by others, the Government, through legislation, are looking at deregulating as much as they can, thus freeing up small and medium-sized businesses to be able to get established in a much sounder way. With that, obviously, comes the question of late payment, which still needs to be addressed. Where breakdowns occur—such as in the farming and food industries—we have the groceries adjudicator. It is a very sad reflection on business that that is actually needed, but a wise move. What we need are powers to fine.

Finally, on the general side, I turn to businesses in rural areas. Many of them start up as one-man businesses and then grow a little, but what is key to all of them is broadband, as has been mentioned. In some areas, it is not a question just of broadband quality; it is actually getting broadband access in the first place. Linked to that is the question of enabling local companies to put in for public procurement tenders, where they will have a chance locally. I think that some opportunity is being missed. On the other hand, there are some very good examples of what is actually being done. The important thing is that people are encouraged.

I congratulate the Government on what they have done. There is still much to do: let us not forget exports—they are the lifeline for us in this country, in the past and in the future.