Oral Answers to Questions

Debate between Debbie Abrahams and Matt Hancock

Thursday 26th March 2015 Commons Chamber

[The Minister for Business and Enterprise (Matthew Hancock)]

The Small Business, Enterprise and Employment Bill contains radical steps to tackle late payment. We have prohibited the practice of paying to join or remain on supplier lists in certain circumstances. We recently consulted on going further and will now require large companies to report on these practices.

[Debbie Abrahams]

I have been campaigning for four years to end the blight of late payments to small businesses, including by ending controversial “pay to stay” contracts. The small business Bill is too little too late. Labour tabled amendments in Committee to end and outlaw the controversial “pay to stay” arrangements. Why did the Government oppose them, and in the light of recent revelations, will they now drop their opposition?

[Matthew Hancock]

I pay tribute to the hon. Lady’s long-standing and effective campaign on late payment. The amendments did not work technically, but I am prepared to consider anything to tackle the culture of late payment. We will make 30 days the normal payment term and 60 days the maximum. That is the culture change we need, and I look forward to working with her to make it happen.

Small Business, Enterprise and Employment Bill

Debate between Debbie Abrahams and Matt Hancock

Tuesday 18th November 2014 Commons Chamber

[Matthew Hancock]

Of course, if we can achieve the regulatory objectives with a lower burden on business, we can get the best of both worlds. Almost all the examples the hon. Lady gave were about the crash and the banks, but systemically important financial institutions are excluded from the one-in, two-out approach, precisely because we need to ensure that we have regulations so that we do not repeat the messes of the previous Administration.

Very briefly, let me speak to Government new clause 5, on the independent complaints commissioner duty, which I commend to the House, and Government amendments 27 and 28, on the business impact target. I made a commitment to look at what more parliamentary scrutiny of that target there should be. We are proposing that the report should be to the House. I look forward to building on the cross-party support for these measures and to explore whether a Select Committee can take a formal role in scrutinising the target. I therefore support those provisions.

[Debbie Abrahams]

I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

Oral Answers to Questions

Debate between Debbie Abrahams and Matt Hancock

Thursday 26th June 2014 Commons Chamber

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

I am very grateful, Mr Speaker.

I am pleased that the Government have finally produced a Bill to deal with late payments to small businesses by large companies. It includes some of the recommendations from my inquiry last summer into late payments. However, it does not go far enough and will give little comfort to the small businesses whose viability is threatened. Why are these measures so timid?

[Matthew Hancock]

I pay tribute to the hon. Lady for the work that she has done on this subject. We consulted on all the potential options, including statutory maximums for payment terms. We put the consultation out with an open mind and a wide range of options. In fact, the small business groups that came forward with proposals in response to the consultation favoured transparency, not a statutory limit. We followed the evidence and the response to the consultation. Like her, I am determined to do everything we can to tackle this problem while not getting in the way of freedom of contract between businesses. We have taken these measures because of what the evidence demonstrated, and I think they will have a big impact. That is all part of our long-term economic plan.

Vocational Qualifications

Debate between Debbie Abrahams and Matt Hancock

Wednesday 5th March 2014 Commons Chamber

[Matthew Hancock]

Yes, I absolutely will. I wish the hon. Gentleman luck in reaching 100 apprentices in 100 days, and I suggest that he take on an apprentice himself.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

Small and micro-businesses in Oldham have told me that they find the process for recruiting apprentices cumbersome and bureaucratic. Given that nearly half the work force are employed in small businesses, what more can we do to engage businesses and make the process to recruit apprentices much simpler?

[Matthew Hancock]

One thing that the hon. Lady could do to make the process simpler is to support the measures in the Deregulation Bill that is going through the House. We are taking a whole series of measures, but if she has specific examples of bureaucracy getting in the way, I would be very keen to look at them.

Oral Answers to Questions

Debate between Debbie Abrahams and Matt Hancock

Monday 6th January 2014 Commons Chamber

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

6. What plans he has for future funding for students in the further education sector; and if he will make a statement.

[The Minister for Skills and Enterprise (Matthew Hancock)]

We announced the 16-to-19 funding policy changes for the academic year 2014-15 last month, and we will confirm the allocation of funding for individual institutions by the end of March.

[Debbie Abrahams]

Oldham sixth-form college and Oldham college were notified, without any consultation, that their funding would be cut by 17.5%. That has a devastating impact on young people in our area and it is anticipated that 700 young people in Oldham will be affected. Long-term youth unemployment in Oldham has more than doubled since November 2010, and we know that the national figure is 1 million people. Given the Prime Minister’s pledge that our young people should “earn or learn”, is this move not another example of this Government’s hypocrisy?

[Matthew Hancock]

Not only are unemployment and youth unemployment falling—thankfully—from the very high levels we inherited from the Labour party, but we have had to make savings in the 16-to-19 budget. We think it is fair to make this change affecting those who have already had two years of post-16 learning; many 18-year-olds in full-time education do not study as many hours as 16 or 17-year-olds. I also say to the hon. Lady that her Front-Bench colleague, the hon. Member for Manchester Central (Lucy Powell), said on television earlier that she wanted the deficit to fall faster. I am not sure that she got the memo from the shadow Chancellor, but Labour has opposed every single cut, no matter how difficult.

Oral Answers to Questions

Debate between Debbie Abrahams and Matt Hancock

Thursday 5th December 2013 Commons Chamber

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

T7. The Government have consistently been on the back foot when it comes to addressing the issue of late payments to small businesses. In the review of that, how will they address the central issue that late payment is a cultural and leadership issue, and needs to be seen as unethical as tax evasion?

[Matthew Hancock]

Late payment is indeed a cultural and leadership issue. I held a meeting in the Department last week with all those concerned. As the hon. Lady well knows, we will be publishing a consultation paper very shortly. I commend her for her continued action and pressing on this issue.

Small Businesses

Debate between Debbie Abrahams and Matt Hancock

Thursday 28th November 2013 Commons Chamber

[Matthew Hancock]

The Department is of course doing what it can to mitigate the impact of that decision. The hon. Gentleman is quite right, as is my hon. Friend the Member for Carlisle (John Stevenson), who spoke passionately about the impact of small businesses, which are embedded in their local communities through jobs and their contributions to local and national life, as well as the role of local authorities in planning, property and procurement.

There have been some fantastic contributions to the debate. My hon. Friend the Member for Brentford and Isleworth (Mary Macleod), as well as recounting the various questions that she has asked at Prime Minister’s questions in the recent past, spoke about drilling enterprise through our education system, which I strongly support. My hon. Friend the Member for North Swindon (Justin Tomlinson) also made that argument. Every time I speak to him, he seems to have another idea about how we can get more content about enterprise into the education system.

Many Members raised the issue of red tape, not least my hon. Friend the Member for Reading West (Alok Sharma), who spoke about the impact of EU red tape. Members across this House must recognise that problem. It is wrongly dismissed by some, but it is an important issue that we need to address. We are doing so through the Prime Minister’s challenge to the EU. The taskforce of six business leaders who are looking at reforming EU regulations is putting the voice of business at the heart of the debate. It has made 30 recommendations on how to remove or improve the most burdensome EU rules. We are working with business to encourage the EU to take up those recommendations over the next year.

My hon. Friends the Members for Rugby (Mark Pawsey) and for Daventry (Chris Heaton-Harris) raised the issue of regulations on employers, especially with regard to micro-businesses. We have made progress by ensuring that employees cannot go to a tribunal until they have been employed for two years and by introducing fees for tribunals. We need to keep this area under constant review because, fundamentally, what we must do is make it easier to employ people and create jobs. That is what growing small businesses is all about.

It is a great pleasure to see you take the Chair, Madam Deputy Speaker. This is the first time that I have been in a debate that you have chaired.

My hon. Friend the Member for Norwich North (Chloe Smith) was here earlier, but apologised that she had an engagement with some small businesses. I pay tribute to the work that she did to open up procurement to small businesses. However, as my hon. Friend the Member for Daventry said, what we are doing in that area is not complete. There is much more to do to improve the formal rules and to ensure that they are seen, exercised and stuck to not only across central Government, but throughout the public sector, including in local authorities. The Department for Business, Innovation and Skills has just reached the target of sending 25% of its invoices to small businesses. That target applies to the whole of central Government and all other Departments are working towards it.

Many hon. Members raised the issues of access to finance and late payment, not least the hon. Member for Oldham East and Saddleworth (Debbie Abrahams). The Government pay more than 85% of undisputed invoices within five days. That is a big change and an impressive feat.

[Debbie Abrahams]

Will the Minister confirm whether that includes suppliers in all tiers? I think that he is referring just to tier 1 suppliers.

[Matthew Hancock]

I was coming on to exactly that point. That figure refers to tier 1 and there is much more to do to drill prompt payments through the supply chain. We must spread that culture across the private sector as well. I will reflect on the hon. Lady’s point that we should make late payment just as culturally negative as tax avoidance and evasion. We will be launching a consultation on late payment shortly.

The right hon. Member for Hazel Grove (Sir Andrew Stunell) raised the issue of the banking appeals system. I do not want to pre-empt what my right hon. Friend the Chancellor will say in the autumn statement in a week’s time, so I recommend that the right hon. Gentleman attends the House on that day.

Opposition Members raised various issues and spoke from different perspectives. The important issue of GRG and the treatment of small companies that have got into difficulties with the banks was raised. The Financial Conduct Authority is looking into the report that was published this week and RBS has appointed Clifford Chance to go through the cases that were raised in detail.

The hon. Member for Glasgow North East (Mr Bain), in typically ebullient fashion, called for firm action and better communication of what we are doing. I certainly agree with him about firm action. That is what I hope to achieve.

On better communication, we have launched the Business is Great campaign, which Members may see on billboards and social media across the country, and the Great Business website brings together in one place the different things the Government and private sector are doing to support small businesses. It is a single portal—greatbusiness.gov.uk—and worth exploring.

The hon. Member for Ogmore (Huw Irranca-Davies) mentioned access to finance, and particularly green measures. Although the Government have reduced the subsidy from energy bill payers and taxpayers to sponsor solar, by ensuring that the scheme was proportionate but still affordable, more than 1 million people are now living with solar panels on their roofs. The hon. Member for Rochdale (Simon Danczuk) spoke passionately about starting his own business with his wife. I hope he gets the chance to have a word with the Leader of the Opposition, who says he wants to ban Members from engaging in any outside employment, including a small business. I strongly hope that the idea that someone can run a small business and be an MP at the same time will continue because of the wealth of insight it brings to people in this place.

There were good speeches from Opposition Members, and it was a pity there were so few of them, given that support from the Government Benches was very powerful. The hon. Member for Colchester (Sir Bob Russell) and my hon. Friend the Member for Rossendale and Darwen (Jake Berry) raised the important issue of business rates. I am glad that one of the first things this Government did was stop the extension of business rates proposed by the previous Government because that would have been a great mistake. In fact, we have extended business rate relief every year, but I have no doubt that had the previous Government remained in office, they would have put up and extended business rates because that is what they were planning.

Apprenticeships

Debate between Debbie Abrahams and Matt Hancock

Thursday 14th March 2013 Commons Chamber

[Matthew Hancock]

With a background in small business, I understand entirely. These plans will make it easier for small businesses to access apprenticeships.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

In my constituency and across Oldham, 8.6% of young people are not in education, employment or training, and we have a lower than average number of 16-to-18 year olds in apprenticeships. As I understand it, the Minister is saying that there will be no response until autumn on the recommendations for engaging with employers. Can we therefore assume that, four years into this Parliament, the Government will have done little or nothing on apprenticeships?

[Matthew Hancock]

No, I said that actions are already being taken forward and I have announced some direct actions today. We are introducing traineeships in the autumn, which aim to ensure that young people have the skills they need to get a job and to hold down a job. That is part of our response too.