Oral Answers to Questions

Debate between Callum Anderson and Gareth Thomas

Thursday 17th July 2025 Commons Chamber

[Gareth Thomas]

One reason the hon. Gentleman’s party lost the confidence of business is that it promised many, many times that it would reform business rates and never did. The Chancellor of the Exchequer has set out our commitment to permanently lower business rates for the hospitality sector—we have already taken steps in that regard—and she will set out our plans to do even more. That is one way in which we are backing up our commitment to SMEs in the hospitality sector and more generally.

[Callum Anderson (Buckingham and Bletchley) (Lab)]

9. What steps his Department is taking to ensure that SMEs in Buckingham and Bletchley constituency can access capital and export finance as part of the UK’s recent trade agreements.

[The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)]

On 26 June, the Department published our trade strategy, announcing the expansion of UK Export Finance’s capacity to £80 billion. We also announced measures to give smaller firms, including those in Buckingham and Bletchley, better access to export protection insurance. The significant increase in the capacity of the British Business Bank will also help to improve access to capital for SMEs, including, potentially, in my hon. Friend’s constituency.

[Callum Anderson]

Innovative high-growth companies, such as Envisics in Bletchley, are developing and exporting world-leading technology-driven products but face difficulties securing the domestic capital needed to scale up. Too often, overseas investors and, sometimes, Governments, offer both finance and other incentives for them to relocate. Will the Minister set out in more detail how his Department is working across Whitehall to ensure that domestic financial institutions, including Government-backed entities, are helping companies like Envisics to firmly anchor their innovations here in the UK?

[Gareth Thomas]

We heard during our SME consultation that one of the biggest issues facing small and medium-sized businesses that want to scale up relates to access to finance. Indeed, since 2011, the stock of bank lending to SMEs relative to GDP has fallen by around 50%, which graphically demonstrates the significance of my hon. Friend’s point. We have been working closely with Treasury colleagues in particular, and when we launched the industrial strategy, we also launched a funding arrangement for the British Business Bank that will provide £4 billion of capital to our high-growth innovative businesses to ensure that they remain anchored in the UK and are able to scale up here.

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[Callum Anderson (Buckingham and Bletchley) (Lab)]

T2. The Government’s £500 million investment to support under-represented entrepreneurs was hugely welcomed by business leaders in my constituency, but access to capital is only part of the challenge. Many still face entrenched barriers around networks, mentoring and market access. Will the Minister set out the steps that the Government are taking to ensure that that investment is complemented by wider reforms to break down any structural obstacles to scaling businesses in Milton Keynes and Buckinghamshire?

[The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)]

The Government-backed invest in women taskforce is addressing many of these issues through its ecosystem working group, which promotes better access to networks, to support and to procurement opportunities. My hon. Friend is absolutely right, though, to say that we need to go further. The small business strategy will set out a range of further measures in that regard.