Reducing Costs for Businesses

Emma Hardy Excerpts

Tuesday 11th January 2022 Commons Chamber

[Lee Rowley]

The hon. Gentleman makes an important point that demonstrates the different challenges for different businesses in different parts of the country, and why the half-baked plans that the Labour party has put forward today—almost—demonstrate that it does not have a coherent plan to face the challenges.

All those measures came on top of more than £79 billion of Government loan schemes, which have directly supported over 1.5 million businesses. On the specific point in the Labour motion about repayments, which the hon. Member for Stalybridge and Hyde did not discuss to any great extent in his opening speech, we have already changed the way that they work to provide greater flexibility for individual circumstances through things such as “Pay as you grow”.

At every twist and turn of the virus, the Government have acted decisively to protect businesses and livelihoods. I refute in the strongest possible terms the charge made by the motion that we have failed to support UK businesses through the pandemic.

[Emma Hardy (Kingston upon Hull West and Hessle) (Lab)]

Does the Minister recognise the anger and upset of excluded businesses that have been unable to get any support, such as those in the coach industry and many others, especially when they see the amount of fraud involved in some of the online loan schemes that the Government have introduced? Further to that, I raised the issue of fraud involved in loans coming from the Government in the Treasury Committee, but I did not feel that there was a fervour or desperation to deal with and tackle the issue. Will the Minister talk about how the Government will recoup some of the money that has been wasted on fraud and how they will ensure that excluded people get the support that they need to get through the pandemic too?

[Lee Rowley]

The hon. Lady makes an important intervention. When policy is made at speed, it is a huge challenge, as the House knows, to ensure that we understand where the lines are drawn correctly. All the way through this difficult time, with the changes that have been required, the Government have tried to target the interventions and the support in the best way to cover the most people who need it.

The hon. Lady’s point about fraud is hugely important. As we hopefully move from a direct intervention model to one of recovery, there will be a huge focus on fraud. The permanent secretary of my Department was before the Public Accounts Committee yesterday with some hon. Members present to talk about that subject, which demonstrates its importance in the future.

Let me turn now to another substantive part of the motion, business rates, which are a favourite topic for Labour party Opposition day motions. There are constant suggestions for changes. On some days the suggestion is to cut business rates, on others it is to reform them. Occasionally, when the Opposition are feeling very bold, they say that we should scrap business rates.

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[Emma Hardy (Kingston upon Hull West and Hessle) (Lab)]

Many hon. Members have said that SMEs are at the heart of their constituency, and I want to mention a fish and chip shop called Goldenfry, which is highly recommended. If Members are ever in the city centre of Hull, they should pop in and get a portion of fish and chips. The business has really struggled because of the covid pandemic and the lack of footfall into the city centre, and it has had difficulty getting back on its feet, but the business has not just complained; it has set up a scheme so that people can go in and buy an extra portion of fish and chips to donate to a person or family without the food they need.

That shows the kind of community we have in the city of Hull and in our SMEs. We look after our own and we look after each other. Excuse the pun but, when the chips are down, we are still there and we still help each other. A local businessman told me this important lesson, “Emma, if you ever want to get support from business, look at those businesses that have people born and bred in the city of Hull, because they will always go the extra mile and do so much more.” Unlike the hon. Member for West Bromwich West (Shaun Bailey), I pay tribute to my Labour-led Hull City Council for being one of the fastest councils in the country in giving out the Government grants.

On the support provided to businesses, as the hon. Member for Aberdeen South (Stephen Flynn) said, we cannot ignore those that have been excluded or gone without any support whatsoever. As I mentioned in my intervention, businesses are angered when they see money wasted by the Government through fraud and through the track and trace schemes that did not work—when they see money, to quote the Prime Minister, “spaffed up the wall” by the Government when they have gone without. There is a real sense of injustice and unfairness, which I hope the Minister recognises as a serious point, especially when we look at sectors such as the coach industry.

On energy costs for businesses, I hope the Minister will look again at Labour’s plan for the contingency fund. There is a local business called Rhythm & Dreams, which is a wonderful dance club where young children can practise their dancing. It won my small business award just before Christmas, and it is a great organisation. The woman who owns the company contacted me to say how rising energy costs are affecting her business, because of course she wants to keep her dance studio warm. She has lots of people coming and going. She has seen huge rises in her costs, but she is not seeing the same increase in income as people are still hesitant about returning to mixing with others. We need to consider targeted and specific support for businesses that are struggling with energy costs.

Although I recognise the support the Government have provided, they could have targeted their money much more successfully. I hope they will not continue to exclude those who have been missing out on support for so long.

[Several hon. Members rose—]