Oral Answers to Questions

Gareth Thomas Excerpts

Thursday 30th January 2025 Commons Chamber

[Jade Botterill (Ossett and Denby Dale) (Lab)]

1. What progress his Department has made on establishing the business growth service.

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

Small businesses are critical to our economy and to the future of all our communities. We will bring forward our small business strategy later this year to improve the environment for small businesses to grow. As part of that work, we are consulting widely with small businesses and other stakeholders on the design of the business growth service, which we will launch later this year.

[Jade Botterill]

Before Christmas, I was pleased to meet some of the many microbusinesses operating in Osset and Denby Dale. They told me that they previously felt that they had fallen through the cracks of Government policy and economic ambition. How will the Minister’s business growth service assist those microbusinesses, as well as broader measures that the Government are taking to help smaller organisations to grow?

[Gareth Thomas]

I commend my hon. Friend on her support for the microbusinesses in her constituency. We want to get behind all those who are willing to take the risk to set up their own business. They help to make our communities more vibrant, they create jobs, and they generate the tax revenues that make our country stronger. The business growth service will be designed to get businesses quicker access to the support they need from the Government, such as applying for a start-up loan, access to training and management support and help with exports.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister for his positive response to that question. In Strangford, small businesses are the backbone of the community, and many people in those businesses work from home. The business growth policy may be specific to England, but what discussions has the Minister had with the Department for Business and Trade in Northern Ireland to ensure that we benefit?

[Gareth Thomas]

The hon. Gentleman has always been a great champion of small businesses in his constituency and in Northern Ireland more generally. We want the business growth service to complement the support that the Northern Ireland Executive and the Welsh and Scottish Governments already give their businesses, to improve the quality of advice and support available to all businesses in all parts of the UK.

[Jerome Mayhew (Broadland and Fakenham) (Con)]

2. What steps he plans to take to help reduce employment costs.

--- Later in debate ---

[Sarah Bool (South Northamptonshire) (Con)]

13. What steps he is taking to support high street businesses.

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

We are continuing to work with colleagues across Government to develop a programme that will revitalise the nation’s high streets and support businesses. We will publish a small business strategy later this year, and high streets will be a key pillar of that. We have already committed to continuing funding for business growth programmes such as the growth hub network and announced plans for a new business growth service.

[Bradley Thomas]

Yesterday, Bromsgrove received the devastating news that it is about to lose both its Lloyds and Halifax bank branches in the town centre. Those banks are a lifeline to many small businesses, particularly those run by independent small entrepreneurs, as well as many residents who use their banking facilities on probably a weekly or daily basis. Does the Minister agree that banking hubs can be part of an ongoing solution to retain banking services in our towns? Will he support my campaign for a banking hub in Bromsgrove? Will he meet me to make that a reality?

[Gareth Thomas]

I recognise that there will be a lot of concern in the hon. Member’s constituency following that news yesterday. I agree that banking hubs can make a significant difference, which is why we have been quick to roll out more than 100 of them. Plans for another 76 have already been developed and we are committed to rolling out 350 in total. In the spirit of one Thomas trying to help another Thomas, I am happy to meet him.

[Sarah Bool]

Our small businesses are the lifeblood of our high street and often give young students their first opportunity for a job on a Saturday or in the holidays. However, one of my local small business owners says that she can no longer afford such roles because of the increase in employer national insurance contributions and changes to business rates, among other things. What will the Government do to support our young people into jobs when small businesses are left in that awful position?

[Gareth Thomas]

The hon. Lady might want to check again with the business she refers to, because, in the most recent Budget, the employment allowance was raised to some £10,500, which will help every small employer’s national insurance bill every year, and should ensure that more than 1 million firms benefit. That is a very practical measure; more broadly, on the point about national insurance contributions, she will know that Labour inherited a very difficult financial situation because of mistakes made by the Conservatives, and difficult decisions have had to be taken.

[Brian Leishman (Alloa and Grangemouth) (Lab)]

Small local businesses in Grangemouth such as pubs, restaurants, cafes, hairdressers and garages all rely on the custom that they receive from the workers of the Grangemouth refinery, but the Government have been very passive in allowing the refinery to close, thus impoverishing the local community. What message do the Government have, first for the refinery workers who face redundancy, and secondly for the small local businesses that rely on their custom?

[Gareth Thomas]

In her speech yesterday, my right hon. Friend the Chancellor set out a series of measures that the Government want to take to boost growth across the country and benefit every part of the UK, from investing in modern road and rail systems to expanding airport capacity, rebalancing the planning system and driving investment in cheaper renewable energy, and by creating a national wealth fund that can back the new technologies of the future. I would be happy to meet my hon. Friend to discuss the specific concerns he has mentioned, if he thinks that would be useful.

[Euan Stainbank (Falkirk) (Lab)]

Falkirk High Street is the beating heart of our district, with recent additions including Barracuda chippy, El Toro Gaucho steakhouse, Greek Theory restaurant and Rock Bottom beer hall. Many Falkirk town centre businesses still raise with me the hardship they have faced because of cost rises and utility, rent and parking increases over a number of years, as well as rental value threshold changes by the Scottish Government, which have contributed to decreased footfall and failing business over a number of years. While I welcome the Government’s commitment to shifting the burden away from the high street, will the Minister outline what further steps he is taking to support my high street, and what engagement he has had with the Scottish Government to support shifting the rate burden away from Falkirk High Street taxpayers?

[Gareth Thomas]

I referred to the establishment of the business growth service in answer to an earlier question. We are working with the Scottish Government to begin to think through how that service can support businesses in Scotland and complement the support already provided by the Scottish Government. We are clear on the need to reform business rates to support retail, hospitality and leisure businesses on the high street. I am very happy to meet my hon. Friend if he thinks there are further initiatives we can take to help small businesses in Falkirk.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the Liberal Democrat spokesperson.

[Clive Jones (Wokingham) (LD)]

R Young Art Gallery is the last art gallery in Wokingham town centre and a proud feature of our high street. However, political inactivity on business rates reform means that it is on the precipice of closing. I was shocked to learn that it is the impending cuts to business rate relief, with no measures in the short term to provide financial support, that have led the owner to fear for the survival of his business. High streets across the country continue to struggle. What is the Minister doing to ensure that small, independent businesses such as R Young Art Gallery are supported?

[Gareth Thomas]

One reason why the Conservatives lost the confidence of the British business community was that despite repeated promises to reform business rates, they took no steps to do so. We announced plans in the Budget, back in October, to reform business rates and introduce permanently lower rates for retail, hospitality and leisure businesses. The Conservatives were going to end business rates relief for retail, hospitality and leisure; we have chosen to extend it. We also announced in the Budget that we were looking at what further steps we could take on business rates reform.

[Mohammad Yasin (Bedford) (Lab)]

7. What assessment he has made of the effectiveness of the UK in attracting international investment.

--- Later in debate ---

[Sir John Whittingdale (Maldon) (Con)]

9. What steps he is taking to help increase business confidence.

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

As the Chancellor of the Exchequer said only yesterday, we are driving forward planning reforms, boosting capital investment by over £100 billion over the next five years, and creating the national wealth fund. We are launching the business growth service and will soon publish our modern industrial strategy, which will be unreservedly pro-business. Business leaders, not surprisingly, have backed those measures.

[Sir John Whittingdale]

But the Minister will be aware that in the last few weeks the CBI, the Institute of Directors and the London chamber of commerce have all said that business confidence is plummeting. Given the tsunami of national insurance contribution increases, business rates increases and employment cost rises, is it not hardly surprising that confidence is being destroyed? Are the Government, rather than promoting growth, not actually destroying it?

[Gareth Thomas]

I think the right hon. Gentleman needs to check his sources for comments from business leaders. Only yesterday the British Chambers of Commerce, the CBI and the Federation of Small Businesses were making very positive comments about our plans for growth, and last week, interestingly, PwC published its annual survey of global CEOs to reveal that Britain was the second most attractive country in the world in which to invest. That is something that I do not think the party opposite ever achieved.

[Catherine Atkinson (Derby North) (Lab)]

Business confidence increases when businesses know that they have the skilled workforce they need in order to grow. We have just had Nuclear Week in Parliament, and it was a pleasure to host Rolls-Royce and its apprentices. Its nuclear skills academy is providing a pipeline of talent, and the same is needed across other industries—from technical skills to creative skills, and from multinationals to small businesses. What cross-departmental discussions have Ministers had about helping businesses of all sizes to provide skills opportunities for our future workforce?

[Gareth Thomas]

I pay tribute to my hon. Friend for her support for Rolls-Royce, which is one of our great British companies leading the way in many export markets across the world. Only yesterday I was discussing with the Minister for Skills our plans to reform the growth and skills levy to make it easier for businesses such as Rolls-Royce to recruit apprentices and find the talent that they need to continue to be successful.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the shadow Minister.

[Greg Smith (Mid Buckinghamshire) (Con)]

I begin by drawing attention to my entry in the Register of Members’ Financial Interests.

When consumer confidence is low, business confidence is low, and nowhere is that more visible than in our automotive sector, with UK car production slumping to its lowest level since 1954. Autocar magazine warned today that the zero emission vehicle mandate

“is currently the industry’s biggest headache, as…consumer demand is not there to meet the stringent regulations which are increasing each year.”

When policy fails, it is sensible to admit it and change course. Will the Minister accept that the ZEV mandate flies in the face of what consumers actually want, and that a radically different path is required to boost business confidence in our automotive sector?

[Gareth Thomas]

No, I do not accept that, and I would gently remind the hon. Gentleman that the policy to which he has referred was introduced by his party. I recognise that there are many aspects of the Conservative party’s record about which he and his colleagues are probably embarrassed. The Liz Truss Budget—which the shadow Secretary of State, the hon. Member for Arundel and South Downs (Andrew Griffith), helped to write—did huge damage to our country and to consumer confidence. The measures that the Chancellor announced yesterday, for example, will drive growth forward, and that is one of the reasons why businesses backed them so strongly yesterday.

[Greg Smith]

It normally takes longer than six months for a Government to drift that far from reality. The Society of Motor Manufacturers and Traders has predicted that just 775,000 cars will roll off production lines in 2025, compared to 1.3 million in 2019. Today’s edition of The Telegraph reports:

“The slump has been accelerated by a slowdown in demand across Europe, particularly by drivers shunning new electric vehicles”.

Why does the Minister persist in a policy to undermine our automotive businesses by forcing them to make a product that people just do not want to buy? Is it not time to get the state out of the way, let our innovators innovate, and boost automotive businesses’ confidence by letting them deliver to actual consumer demand?

[Gareth Thomas]

The hon. Gentleman seems to have forgotten the extra investment that Nissan has announced, and the extra investment that has been announced by a number of other car manufacturers. He and his colleagues were very clear in opposing the measures that we took in the Budget, including measures that backed investment in the automotive sector, and they set out no plans to pay for that investment. I gently encourage him to reflect a little further on the mistakes that his party made in government, which have caused some of the problems that we are having to sort out now.

[Rebecca Smith (South West Devon) (Con)]

11. What assessment he has made of the potential impact of Post Office closures on local communities.

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

The Post Office has the freedom to operate the branch network within the parameters set by the Government. We protect the network by setting minimum access criteria so that, in urban and rural areas, everyone has easy access to their nearest post office. Those criteria ensure that however the network changes, services remain within local reach of all citizens.

[Rebecca Smith]

The community of Plymstock in my constituency saw its main post office close in September 2021, when Morrisons closed more than 80 of its newsagents across the country; the post offices were essentially collateral damage. Despite the best efforts of the community, my predecessor and councillors—including me, at the time—since the Post Office has downgraded the franchise on offer from main branch to post office local, it has been impossible to secure an operator due to the financial unviability of the model. Yesterday, the final local branch announced that it will close later in the year. What is the Minister doing to ensure that sustainable joint post office and banking services replace closing branches in constituencies like mine?

[Gareth Thomas]

We have supported the Post Office in taking measures to increase sub-postmaster pay, to make it a more attractive profession to come into, in order to deal with precisely the issues that the hon. Member set out. She will understand that I do not have specific knowledge of the issues around the post office in her constituency, but I am always happy to challenge the Post Office on constituency issues, so if she would like to write or speak to me about this afterwards, I would be happy to look at the issue in more detail.

[Bob Blackman (Harrow East) (Con)]

12. What steps he is taking to negotiate a free trade agreement with India.

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

As the Chancellor announced yesterday, the Secretary of State will travel to Delhi in February to relaunch trade talks with India. Work is under way across Government to prepare for those negotiations as we seek a deal that drives economic growth. An agreement with India, projected to be the fourth-largest global importer by 2035, could provide further opportunities for businesses across the UK and further unlock growth.

[Bob Blackman]

I thank my constituency neighbour for that update. The previous Government had more than 15 rounds of trade talks with India before the general election, in both India and the UK. Will the Government ensure that we in the UK gain access to the services market in India, which has previously been denied to UK firms? That is the key issue in our negotiations.

[Gareth Thomas]

If I remember rightly, the hon. Member and I were probably the two most enthusiastic Members of this House for a trade deal with India—me slightly more than him, I think. We are determined to do everything we can to secure a trade deal with India. He will forgive me, I am sure, if I do not give a running commentary on our priorities for those trade talks with India, but they represent a significant prize for the UK if we can reach an agreement. The Secretary of State and the Minister for Trade Policy and Economic Security are determined to work extremely hard and do everything they can to reach an agreement.

[Douglas McAllister (West Dunbartonshire) (Lab)]

Although it is appreciated that a new trade deal with India could support jobs and prosperity in the UK and thus drive growth, will the Minister ensure that the talks include discussion of an agreement to the immediate release of my constituent Jagtar Singh Johal from arbitrary detention in India before any trade deal is concluded?

[Gareth Thomas]

I recognise that this is a significant issue for my hon. Friend. We remain committed to encouraging the Government of India to make faster progress on resolving this case. My right hon. and learned Friend the Prime Minister raised this case with Prime Minister Modi on 18 November, and we have made clear the need for faster progress towards a resolution.

[Lewis Cocking (Broxbourne) (Con)]

15. What steps his Department is taking to encourage entrepreneurship.

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

The Government continue to support entrepreneurs through, for example, start-up loans via the British Business Bank. We will publish our small business strategy later this year, which will signal a clear, overarching ambition to promote entrepreneurship, and will articulate a new vision for business support, built around the new business growth service that I have alluded to.

[Lewis Cocking]

Economies grow and jobs are created when individuals are able to take risks and invest in their ideas, so what have the Government done specifically since the general election to help more people in my constituency of Broxbourne become entrepreneurs?

[Gareth Thomas]

One thing we need to continue to do is make it easier for entrepreneurs in the hon. Member’s constituency and across the UK to access the finance that they need to set up their business. We have given an extra £250 million to the British Business Bank, which will help to ensure that more people have access to finance across the country, including in his constituency. We will publish our small business strategy later this year, in which he will see further measures to support entrepreneurs in Broxbourne and across the UK.

[Melanie Onn (Great Grimsby and Cleethorpes) (Lab)]

What specific support is being provided for women entrepreneurs? They are the driving force behind small businesses in my Great Grimsby and Cleethorpes constituency, and deserve all the support that they can get.

[Gareth Thomas]

I strongly support my hon. Friend’s substantive point. We are backing the Invest in Women taskforce, which was set up to increase the number of female-powered businesses. We are looking at how to increase significantly the proportion of investment going to all-female founding teams; it has been stuck at just 2% of equity investment in the last decade. That is one example of the things we need to change to help women-led businesses realise their full potential.

--- Later in debate ---

[Max Wilkinson (Cheltenham) (LD)]

T8. My constituent, Charlotte Durrant, runs a plant shop called the Aroid Attic on Bath Road in Cheltenham. Before Brexit, she was able to import her plants from the Netherlands with no bureaucracy and without any import duties. Do Ministers agree that a customs union with the European Union would solve that problem? If they do not agree with that, do they agree that more needs to be done to help small and medium-sized enterprises like Charlotte’s to tackle the competition from larger supermarkets, which are her main competitors?

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

I commend Charlotte on her business. We recognise that we need to do more to help businesses like hers to be able to export more easily to Europe. That is why the Prime Minister has set out our determination to reset the relationship with Europe. We have made clear our plans to negotiate a phytosanitary agreement with the EU, which may or may not make an immediate difference for Charlotte, but there are other aspects of our plans to reset the relationship with Europe that I hope will help.

[Sarah Owen (Luton North) (Lab)]

T5. Despite repeated Government and union engagement, it seems that Luton could be set to lose one of its largest private sector employers, as Stellantis closes its Vauxhall plant, despite our excellent transport connections, skilled work- force and proud industrial heritage. In the light of that devastating blow, does the Minister recognise the importance of Luton airport as a tool to invest in growth and attract private sector employment to our town?

--- Later in debate ---

[David Mundell (Dumfriesshire, Clydesdale and Tweeddale) (Con)]

Yesterday, out of the blue, Bank of Scotland announced that it will close five branches in my constituency, leaving hundreds of square miles of the rural south of Scotland without a single bank branch. While we must work with Link and others to ensure access to cash in those communities, does the Minister share my concern not only that this will leave empty premises prominent on the high street, but that it sends a message that the banks are giving up on rural areas and on those who do not bank online?

[Gareth Thomas]

I recognise that the right hon. Gentleman’s constituents will be concerned about the Bank of Scotland’s decision. He may know that more than 9,500 bank branches closed between 2010 and 2023. That is why the Government are determined to ensure the much more widespread roll-out of banking hubs, with a commitment to roll out 350 banking hubs. I strongly suggest to the right hon. Gentleman that he get in contact with Link and Cash Access UK to make the case for a banking hub in his constituency. If I can help in any way, I will be happy to consider doing so.

--- Later in debate ---

[Josh Babarinde (Eastbourne) (LD)]

Our precious high street in Eastbourne is blighted by the dilapidated Debenhams building on Terminus Road, whose owner has left it empty for years, attracting antisocial behaviour and crime. Will the Minister meet me or support me to meet his colleagues from the Ministry of Housing, Communities and Local Government and Eastbourne borough council to discuss how we can use the new high street rental auction powers to force the owner to make that unit occupied again, so that we can regenerate our high street in the sunniest town in the UK?

[Gareth Thomas]

I have already met the hon. Gentleman to discuss some of the issues facing the high streets in his constituency. If he thinks I am the most appropriate Minister for that discussion, I am happy to make sure that it happens. He may actually want to discuss this particular issue with colleagues in MHCLG, whose attention I will draw to the question, because they and their officials are working much more closely on the implementation of the powers he mentions.