Business and the Economy

Bob Stewart Excerpts

Monday 14th May 2012 Commons Chamber

[Mr David Evennett (Bexleyheath and Crayford) (Con)]

I am pleased to be able to speak today in support of the Queen’s Speech, which continues this Government’s progress in their endeavours to deal with the real problems facing our country. We meet today to discuss a wide range of issues in difficult and dangerous economic times. I commend my right hon. Friend the Secretary of State for Business, Innovation and Skills for his approach, and I am pleased to follow the logic of my right hon. Friend the Member for Wokingham (Mr Redwood) and my hon. Friend the Member for Poole (Mr Syms). The right hon. Member for Birkenhead (Mr Field) made a powerful speech, but I believe he got it wrong.

We on the Government Benches have a strategy and proposals to deal with our economic situation. Of course we need dynamism, businesses and more jobs, and we need to get involved in markets across the world. However, I welcome the fact that this Queen’s Speech is not inundated with new Bills. Under the unlamented Labour Government, there was too much legislation, and mere legislation is not the answer. This programme has targeted legislation dealing with the real issues—for example, the enterprise Bill and the banking reform Bill, both of which are vital and helpful.

The Queen’s Speech must be viewed as a continuation from the Speech two years ago and the recent Budget. The previous speaker, the hon. Member for South Down (Ms Ritchie), was wrong. The Budget increased the income tax personal allowance to £8,105 from this April, benefiting 25 million people by up to £126 a year. That is a real achievement. Last month’s increase in the personal allowance will take 260,000 people, the lowest earners, out of income tax altogether, so the hon. Lady was quite wrong when she said that the Government were not doing anything for the majority in this country: they are.

In particular, at the heart of the Government’s approach is the determination to get our economy back on track, growing and creating new businesses, new jobs and new opportunities. As stated in the Speech, Ministers’ first priority is to reduce the deficit, restore economic stability and focus on economic growth. That is fundamental to any Government, and this Government are committed to doing so. The legislative programme is helpful in reducing burdens on business by repealing unnecessary legislation and limiting state inspection of business. These are welcome steps.

In addition, there are proposals to reform competition law and to promote enterprise and fair markets. I welcome the introduction of an independent adjudicator to ensure that supermarkets deal fairly and lawfully with suppliers. I strongly support measures to make parental leave more flexible so that both parents can share parenting responsibilities and balance the work and family commitment in today’s complex, challenging and demanding society. This must be a positive and welcome addition. Of course, growth, jobs, businesses, especially small businesses, are vital, but so is the families and children Bill, which will reform adoption procedures, improve and overhaul special education and give flexible parental leave, which I have already highlighted.

I strongly support the measures for small businesses. Without doubt, the economy is the main problem facing our country, and it has consequences for all of us. We are fortunate that we did not join the euro; otherwise, things would have been far worse.

[Bob Stewart (Beckenham) (Con)]

I have a small business in my constituency that is very profitable and has been so for 28 years. It requires some help from the bank but that is not forthcoming. The bank will not loan it any money and as a consequence it has had to sell one of its buildings. We must get that right. We must ensure that banks release equity so that our companies can get moving. I hope my hon. Friend agrees.

[Mr Evennett]

My hon. Friend is absolutely right. That is one of the key factors. We must ensure that businesses are lent money by the banks to ensure that they continue to flourish and be profitable. We must never forget that small businesses are the backbone of our economy; the backbone of our country. There are 4.5 million small and medium-sized firms, making up 99.9% of all enterprise in the UK. I welcome the comments of the hon. Member for Huddersfield (Mr Sheerman)—who, regrettably, is not in his place now—who was passionate about small businesses and their importance for the future. They are a vital element. Businesses create the wealth that allows the Government to fund all our vital public services. Therefore, we are all, on whichever side of the House, keen to encourage, enthuse and improve small businesses so that they can be profitable for the benefit of society as a whole. The most competitive nations have clear strategies to support business. They have lighter regulation, less interference, competitive tax regimes, banks that support them, or should support them, and employment laws that make it easy to hire people. Businesses need help from the Government, not hindrance or neglect. Opposition Members did not give a lot of help to small businesses when they were in power, and I will take no lectures from them on this today.

In two years, the Government have made real progress. Corporation tax has been cut and there have been more apprenticeships and financial assistance to support work-based learning. I am a huge supporter of apprenticeships and commend the work of the Minister for Further Education, Skills and Lifelong Learning, my hon. Friend the Member for South Holland and The Deepings (Mr Hayes). His enthusiasm and success are infectious, and we now have more apprentices than we have ever had in the recent past, and that is to be commended.

A red tape challenge campaign was launched by the Government to listen to businesses’ concerns about regulation. A national loan guarantee scheme has been introduced, so hopefully businesses can get access to the credit that they need to survive and grow. Business is important to this Government and to our society. Under the last Government, businesses were taxed more and regulated more, and they did not get the support that they needed. This Government are going forward positively to ensure that that they do.

The Queen’s Speech is essential. It is essential to get the economy growing and to take the right approach, tenor and leadership, and this Queen’s Speech will achieve that. The economy and business are fundamental to our society and the Queen’s Speech has at its centre the economic future of our country.