Business of the House

Barry Sheerman Excerpts

Thursday 18th April 2013 Commons Chamber

[Mr Lansley]

I am glad my hon. Friend raises that point, because I think it will be of concern to Members across the House. In all our constituencies we look to local authorities to exercise their community responsibilities. That is particularly the case at present, as local authorities have growth incentives that they can use to support not only enterprise locally but important community facilities. I therefore hope what my hon. Friend has said will be heard not only in this House but in the chamber of his council.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

I am sure both you, Mr Speaker, and the Leader of the House will agree that the future of our country depends greatly on entrepreneurs, entrepreneurship and business start-ups, and that many small businesses have been ill served by the banking sector in this country over a number of years. Is the Leader of the House aware that many small business start-ups are now using crowd financing for funding? That is a new way of regenerating our economies and communities, but is he also aware that the Financial Conduct Authority will introduce a regulation on that in about three weeks’ time—on 14 May, I think? Only a very small number of people have been consulted on it. People with crowd funding expertise in relation to start-up businesses have not been consulted, and neither has this House been consulted on a measure that is vital to the future of enterprise.

[Mr Lansley]

I completely endorse what the hon. Gentleman says about the importance of start-ups, and in the last year for which figures are available more new businesses were created in this country than in any of the previous 20 years. It is important that we continue to support start-ups, however, and the availability of finance is central to the success of new businesses. I am aware that new businesses are increasingly using crowd financing and other innovative sources of funding, although I was not aware of the details relating to any FCA regulation. I will ask my hon. Friends at the Treasury to write to the hon. Gentleman about that, and to let us know about the processes for the scrutiny of any such regulation.