Enterprise and Regulatory Reform Bill
Debate between David Anderson and Brian Binley
Mr Brian Binley (Northampton South) (Con)
I congratulate the hon. Member for Ayr, Carrick and Cumnock (Sandra Osborne) on a forceful defence of equalities. It was well received, and she should feel that she has done her job very well indeed.
This is an important Bill, and I will concentrate not on equalities but on small and medium-sized businesses. They are where our growth will come from, which is why we have to prioritise them. Over the past decade we have failed to recognise the contribution that new and growing businesses make to our prosperity. It is small businesses that deliver employment growth. Private sector employment increased by 45,000 in the final quarter of last year to 23 million, the bulk of whom are in small businesses. They represent more than half the people employed in this country. As the public sector contracts to sustainable levels the private sector will grow, and small and medium-sized businesses will create the jobs that we need. They need help and impetus, and that is what I want to concentrate on today.
The Secretary of State mentioned the situation in Germany, where very small businesses are well looked after because they are seen as the future oak forests of the German economy. They do not have to be on the trade register, they do not pay turnover tax, they do not specify turnover tax on their bills and they can calculate their profit for income tax purposes on the basis of revenue surplus. Additionally, they are not paid back the turnover tax that they pay to other businesses, and they are subject not to the rigid regulations of the commercial code but to the more protective regulations of the civil code. In other words, the Germans recognise the need to nurture their new and growing businesses. I am disappointed that we have not taken that route in the Bill, and I implore the Minister to consider that very seriously.
Much has been said in the debate about regulatory reform, but small businesses have heard much of it before. Large multinationals have the resources to use expensive consultants and employ compliance departments, unlike almost every small business that I deal with. In commensurate terms, the burden placed upon small businesses is sometimes 30 times greater than that on a plc, yet we expect them to deal with the problems of employment tribunals, health and safety at work and human resources. They simply cannot do that and grow at the same time, and we need a Government who recognise that. I recognise some of the good that the previous Government did in this area, but they did not really understand that point. I fear that we will not understand it either, and I beg the Minister to consider it very seriously indeed.
Mr Anderson
Given what the hon. Gentleman has said, would it not be more sensible for the Government, instead of attacking employee rights, to give small business people access to such things as good-quality legal aid, so that they can take people on and exploit the system in the right way?
Mr Binley
I consider the hon. Gentleman to be a friend, and our views meet on a number of issues, particularly clean coal. However, they do not meet on this matter, because his suggestion would only add even more bureaucracy to small businesses. We need to lift that bureaucracy, and I ask that that point be appreciated.