UK Trade Envoy to Brazil: Lord Evans of Sealand
Gareth Thomas Excerpts(1 week, 5 days ago)
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The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)
The Secretary of State has today appointed Lord Evans of Sealand to the United Kingdom’s trade envoy programme as the UK trade envoy to Brazil.
The United Kingdom’s trade envoys will play an integral role in the Government’s growth mission and delivering our plan for change by helping to create opportunities for UK business to compete abroad, break into new markets and attract greater inward investment from their markets.
Lord Evans of Sealand will play a crucial role in supporting my Department’s growth priorities, in particular through helping deliver the industrial and trade strategies and attracting foreign direct investment to every region in the UK.
The role as a United Kingdom trade envoy is unpaid and voluntary with cross-party membership from both Houses.
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Oral Answers to Questions
Gareth Thomas Excerpts(1 week, 6 days ago)
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Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)
The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)
Businesses in rural areas offer significant potential for growth and are central to our economy. We are working across Government to unlock the full potential of rural businesses as part of the Government’s growth mission. We are committed to launching a business growth service inspired by the US Small Business Administration, which will operate in partnership with devolved Governments and the growth hub network in England to make it easier to access support from Government for all businesses.
Jamie Stone
In conversation this morning with Trudy Morris, the CEO of the Caithness chamber of commerce, she outlined the sheer importance of tourism businesses to the local economy and the farmers in Scotland. The concern expressed to me is on the rate of VAT on tourism and similar businesses, and although we do not know whether the Highland council will impose a tourism levy, that could be a double whammy. I do not expect for one instant hon. Members on the Front Bench to say, “Jamie, you can have a cut in the rate of VAT”—well, I dream sometimes—but I would be grateful for a meeting to discuss the nature of the problem and how we could possibly tackle it.
Gareth Thomas
I apologise to the hon. Gentleman, as I cannot fulfil his dreams right now. However, I am happy to meet him to talk about that issue. I recognise that there is considerable interest in that question from the hospitality industry, so I am happy to meet to hear, in a bit more detail, the particular concerns expressed to him.
Dame Harriett Baldwin (West Worcestershire) (Con)
The Business Secretary, the Minister and the Chancellor have all said that they want growth, including in rural areas. I have searched high and low for business growth statistics since the Budget of broken promises, and I find that, in the last quarter, there has been a growth of 50% in the number of businesses that are in critical financial distress. Why does the Minister think that is?
Gareth Thomas
I say gently to the hon. Lady that the difficult decisions that my right hon. Friend the Chancellor had to take in the Budget were, interestingly, particularly well explained by her former colleague Kwasi Kwarteng, who made it clear that he thought they had to be taken because of the mistakes that he and the Conservative party had made when they were in government.
Shaun Davies (Telford) (Lab)
Bradley Thomas (Bromsgrove) (Con)
The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)
Working across Government, we are determined to revitalise our high streets and support the businesses on them. We are working with industry to create a fairer business rates system that protects the high street and supports investment. We have introduced the Crime and Policing Bill, which will give better protection for businesses and retail workers against assault and theft. Our forthcoming small business strategy will set out our plan for further support for small businesses on the high street and beyond.
Dr Huq
From 5 am to 10 pm daily, the Patels’ newsagent, off licence and post office was an Acton staple—until Horizon slapped it with a £123,000 demand, and Mrs Patel had a series of mini-strokes. Will Ministers look into the fact that their compensation was rejected because Mr Patel was the postmaster, and show their love for high-street heroes everywhere by attending a tea organised by the all-party parliamentary group for ethnic minority business owners on 3 April? You are welcome too, Mr Speaker.
Gareth Thomas
I am grateful for my hon. Friend for raising the case of the Patels. I am keen that any sub-postmaster who was a victim of the Horizon scandal gets access to the compensation they rightly deserve as quickly as possible. She will understand that I cannot comment on individual cases, but if she wants to write to me about the specific case, I would be happy to look into it further and to discuss it with her.
Bradley Thomas
There are over 70 pubs across Bromsgrove and the villages. One of them—the Queens Head—faces a staggering £42,000 annual increase in the cost of business rates and national insurance contributions as a result of choices made by this Government. That is on top of increasing concerns around a banter ban. Will the Minister confirm that nobody will be ejected from a pub or hospitality venue for sharing a joke, and will he outline what steps he is taking to support pubs, rather than putting them out of business?
Gareth Thomas
I note in passing that 10,000 pubs closed their doors under the Conservative Government, so I do not think the pub industry is looking to the hon. Gentleman’s party for guidance going forward. On the specifics he asked about, he will be aware of our plan for business rates reform, which will help and make a significant difference to many pubs. On the so-called “banter ban”, I gently suggest that he should not believe everything that he reads in the newspapers.
Sally Jameson (Doncaster Central) (Lab/Co-op)
Pubs and restaurants are part of a thriving high street in Doncaster that is known for its iconic nightlife. Will the Minister set out what action the Department is taking to support hospitality and ensure that high streets continue to thrive, and may I invite him to Doncaster to see how nightlife is done properly?
Gareth Thomas
I will give careful consideration to my hon. Friend’s very generous offer. In answer to the hon. Member for Bromsgrove (Bradley Thomas) I mentioned business rates reform, which could make a significant difference for many businesses in the night-time economy. Another crucial issue that we want to tackle is the rising crime and antisocial behaviour on our high streets. As she will know, the Crime and Policing Bill, which is beginning its journey through Parliament, will make a significant difference in that regard.
Sir Roger Gale (Herne Bay and Sandwich) (Con)
The high street trader John Lewis Partnership is announcing its annual results today. It is a highly successful business but this year it will not be paying a dividend to its partners, the workforce, because it has to absorb national insurance costs. Does the Minister understand the real impact that NI contributions are having on what his party likes to describe as “ordinary working people”?
Gareth Thomas
I say gently to the right hon. Gentleman and his Conservative colleagues that we had to take the difficult decisions in the Budget to increase employer national insurance contributions because of the mess that their party left the country in. The shadow Secretary of State for Business and Trade, the hon. Member for Arundel and South Downs (Andrew Griffith), helped to write the Liz Truss Budget that did so much damage to our country—we are trying to sort out the mess. The shadow Secretary of State still has not apologised for his part in that fiasco. He should take the opportunity to do so during these questions.
Greg Smith (Mid Buckinghamshire) (Con)
Yesterday, the owner of the hugely popular Rumsey’s, which is celebrating 21 years on Wendover high street in my constituency, emailed me to say:
“We estimate the changes coming in April will add 15% to our staff costs that we simply don’t have. Therefore we have had to sadly make redundancies, put in a recruitment freeze and implement staff hour cuts to offset this.”
With real-world testimony like that replicated up and down the country, will the Minister finally acknowledge that an urgent change of course is needed to support high streets, scrap the employer NI rise, save jobs and protect communities?
Gareth Thomas
I gently say to the hon. Gentleman that it would be interesting to know whether he now regrets the enthusiastic support he gave the Liz Truss Budget, which did so much damage to our country’s public finances. Our Budget in October last year started the process of sorting out those situations. I looked with interest at his website recently, which has a “My plan” section. It is completely blank. Although that is probably better given that he so strongly supported the Liz Truss Budget—there is at least a bit of progress.
Greg Smith
Well, that was no answer to my question whatsoever. It is almost as if Labour Members have not realised that they are in charge and that it is their decisions that are having this impact. Let me tell the Minister something else that Rumsey’s reported to me:
“The reduction in business rate relief will leave me no choice but to raise prices simply to break even, further limiting growth and accessibility for customers.”
I just do not know how much more the Minister needs to hear to understand the scale of the problem on our high streets. He talks of business rates reform, but the only business rate change we have seen is the devastating cut to business rates relief, which is hurting high streets now. Will he reverse it?
Gareth Thomas
Had the hon. Gentleman’s party been elected, retail, hospitality and leisure relief would have come to an end. We have extended retail, hospitality and leisure relief. We have set out in the Budget our plans to permanently lower tax rates for retail, hospitality and leisure properties on the high street from 2026-27. We are taking measures to tackle crime and antisocial behaviour on the high street, which his party could have done more to tackle but chose not to. We are bringing in new legislation to end the immunity for crime on the high street where shoplifters steal goods worth £200 or less, and we are creating a specific offence of violence against retail workers to try to make it easier for businesses operating on the high street.
Kenneth Stevenson (Airdrie and Shotts) (Lab)
David Reed (Exmouth and Exeter East) (Con)
The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)
We are creating a fairer business rates system, reducing alcohol duty on qualifying draught products, and our forthcoming small business strategy will set out our plan to further support small businesses on the high street and beyond. In addition, through the Hospitality Sector Council, we are addressing, with business, strategic issues related to high street regeneration, skills, sustainability and productivity, and we have recently saved the pint.
Sir Edward Leigh
Obviously the Minister is working very hard, but he looks a bit tired, so may I offer him some Lincolnshire hospitality? Will he come and stay for a glorious weekend in one of our farm cottages, to enjoy our great skies and bracing air, and help our distressed farmers? Frankly, they need the income. The problem is that the Government have abolished the furnished holiday letting scheme, which was a tremendous encouragement for the countryside. I do not expect an answer now, but will he consider approaching his right hon. Friend the Chancellor to see if we can reinstate that in the Budget, to help our farmers and the countryside?
Gareth Thomas
Unusually for the Conservative party, the right hon. Gentleman has made an extremely generous offer. I am almost as tempted by that as by the offer from my hon. Friend the Member for Doncaster Central (Sally Jameson) to visit Doncaster. I am happy to look at the issue he raises and I will write to him with more details.
David Reed
The Crusty Cob bakery has been a constant in east Devon for the past 55 years, but last week the family-run business closed the doors on all nine of its shops, making over 100 local people redundant. The owners stated a panoply of issues, from manufacturing costs to reduced high street footfall and energy prices, but the kicker is the decision that this Business Secretary’s party has made to slam companies with increases to the national living wage and employer national insurance contributions. The effects of this Labour Government’s decisions are setting in and literally destroying working family businesses. Will the Business Secretary and the Minister please give a message to the Crusty Cob team who have just lost their jobs?
Gareth Thomas
I understand that this will be an extremely worrying time for employees of the Crusty Cob and their families. I gently say to the hon. Gentleman that we are offering a 40% discount to retail, hospitality and leisure properties as part of our business rates package. We are going to reform business rates more substantially, with a permanently lower multiplier in 2026 that, while it clearly will not help the Crusty Cob and its employees, will help other businesses on the high street.
I am slightly surprised that the hon. Gentleman should be so opposed to an increase in the living wage—I do not know whether that is his party’s policy. I also gently remind him of the data from the Office for National Statistics, which my right hon. Friend the Secretary of State pointed out, showing more people in jobs this year compared with last year.
David Davis (Goole and Pocklington) (Con)
The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)
In the past eight months we have trebled the total amount of compensation paid and ensured that more than 2,300 victims who had as yet received nothing have now had some financial redress. We are making up-front, fixed-sum offers and interim payments where possible to speed up the delivery of redress. There is still a lot more to do, though, and we remain committed to ensuring swift and fair redress for every postmaster affected by the Horizon scandal.
David Davis
I thank the Minister for that answer. He and I will agree that the Post Office Horizon scandal is one of the greatest miscarriages of justice in modern times, but the problems with the Post Office and its injustice extend far beyond that. Some 21 cases relating to the precursor system, Capture, which bear the same hallmarks as those in the Horizon scandal, have been referred to the Criminal Cases Review Commission. I am afraid that the CCRC is famous for taking years to come to obvious decisions, so can the Minister tell me that it will deal with this in months? If not, will his Department intervene directly?
Gareth Thomas
The right hon. Gentleman is absolutely right to raise the issue of Capture. As he will know, we have published our response to the independent Kroll report on the Capture software issue and the way in which the Post Office responded to the data that came out of it. We have been meeting sub-postmasters who used the Capture system and who were the victims in that regard to talk through a redress scheme with them. We are also working closely with the Criminal Cases Review Commission and have made it clear to the Post Office that it must co-operate with requests from the CCRC so that we can speed up its deliberations on the 21 cases.
Harpreet Uppal (Huddersfield) (Lab)
I recently met a constituent who is a former postmaster affected by the Horizon scandal. He has applied for compensation but feels that the process is taking too long, with unreasonable asks. Given the legal ruling that postmasters should be afforded the benefit of the doubt, what steps is the Department taking to ensure that compensation claims are processed fairly and without delays that could further affect the victims?
Gareth Thomas
As my hon. Friend will know, we inherited a compensation process that was perceived by many sub-postmasters as being slow, legalistic and adversarial, so we have already taken a series of steps to try to speed things up, particularly in trying to get out more fixed-sum payments—for example, we are moving in more staff to support work on the compensation process. If she would like me to look in more detail at her constituency case, I am very happy to do so.
Dame Harriett Baldwin (West Worcestershire) (Con)
The Business Secretary met recently in Japan with Fujitsu, which developed the Horizon system and has offered to contribute to the compensation for victims. Can the Minister tell the House how much the Secretary of State has asked it to contribute, so that taxpayers are not on the hook for £1 billion?
Gareth Thomas
The hon. Lady is right to reference the discussions that my right hon. Friend had with the chief executive officer of Fujitsu. That company has agreed to begin talks about its contribution to the costs of compensation. She will understand that we also need to wait for Sir Wyn Williams’ inquiry to conclude, and for his recommendations regarding compensation from Fujitsu to be heard and understood. I am sure she will also understand that I am not going to give a running commentary on the discussions with Fujitsu, but I welcome the fact that it has agreed to begin talks.
Alex Baker (Aldershot) (Lab)
Mr Alistair Carmichael (Orkney and Shetland) (LD)
The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)
The Treasury published a tax information and impact note in November 2024, alongside the introduction of the Bill containing the employer national insurance contribution changes. It sets out the impact of the policy on the Exchequer and the impacts on business, and that approach is consistent with previous tax changes.
Mr Carmichael
The impact I hear from SMEs in my constituency, predominantly in the visitor economy, is that they are anticipating cutting the hours of part-time staff or laying them off and reducing the number of seasonal employees that they will take on. Will the Minister take those concerns seriously and work with Ministers in the Scottish Government to ensure that the legitimate concerns of SMEs in my constituency do not blossom into a full blown crisis of confidence?
Gareth Thomas
I am always happy to work with the Scottish Government and other devolved Governments on how we can improve the business environment. I am sure the right hon. Member will join me in encouraging the Government in Scotland to mirror the changes we have made to business rates relief. Given the sizeable increase in the Scottish budget, it is somewhat surprising that the SNP has not been willing to support the retail sector through an extension of retail hospitality relief.
Frank McNally (Coatbridge and Bellshill) (Lab)
Jo Platt (Leigh and Atherton) (Lab/Co-op)
The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)
My hon. Friend is a great champion of the social enterprise sector. She will know that we are committed to doubling the size of the co-op and mutuals sector. We recently met the recently launched mutuals and co-op business council to begin working with businesses on our plans to expand the co-op and mutuals sector. She may also be aware that our social enterprise boost fund is currently spending some £4 million on helping to support social enterprises that are already up and running.
Mike Wood (Kingswinford and South Staffordshire) (Con)
Gareth Thomas
We have had one or two questions on this topic, and the hon. Member will therefore not be surprised by my answer. I gently point out that the difficult decisions we took on employer’s national insurance contributions in the Budget were a direct result of the mess the Conservative party, which he supported so enthusiastically, left for this Government.
Amanda Hack (North West Leicestershire) (Lab)
Gareth Thomas
We know that rural businesses want to see more investment in bus services and better transport infrastructure. My hon. Friend will appreciate that the Chancellor announced in the Budget some £650 million-plus in funding for local transport, which is designed to support everyday journeys and improve transport connections. I am sure, too, that she will welcome the better buses Bill, which is coming in to give local authorities—
Gareth Thomas
One of the big issues that small businesses wanting to scale up face is access to finance. We are actively working across Government on what else we can do to support businesses to get access to the finance they need, including through the British Business Bank.
Ellie Chowns (North Herefordshire) (Green)
In my constituency, a planning moratorium has been in place for more than five years due to water pollution, with an estimated effect on the local construction industry of half a billion pounds, despite the fact that new house building is a minute proportion of the problem. Will the Secretary of State meet me and representatives of the Herefordshire construction industry to try to find a solution to this devastating problem?
Horizon Redress
Gareth Thomas Excerpts(2 weeks, 2 days ago)
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The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)
This Government are fully committed to providing full and fair redress to victims of the Horizon scandal and making sure all of those responsible face justice and contribute to redress.
The latest redress figures published by my Department on Friday show that £768 million has now been paid to over 5,100 claimants across all redress schemes, representing a more than tripling of the total amount of redress paid to victims by Government since the end of June 2024.
I am pleased to inform the House that on Friday, the Secretary of State for Business and Trade, my right hon. Friend the Member for Stalybridge and Hyde (Jonathan Reynolds), held a positive and constructive meeting with Takahito Tokita (CEO, Fujitsu Ltd) and Paul Patterson (Director, Fujitsu Services Ltd).
The Secretary of State welcomed Fujitsu’s agreement to begin talks on Fujitsu’s contribution to compensation costs, ahead of the conclusion of Sir Wyn Williams’s Horizon IT inquiry—a joint statement was issued after the meeting and published on gov.uk and Fujitsu’s website. Fujitsu has previously stated its moral obligation to contribute to compensation for the victims of the Post Office scandal, which we have welcomed.
Officials from the Department for Business and Trade will continue to engage with Fujitsu representatives in full. We will not provide a running commentary on these discussions, but will keep both Houses informed at key points.
The Secretary of State commented after Friday’s meeting that we must never forget the lives ruined by the Horizon scandal and no amount of redress can take away that pain. But, as I am sure Members of this House agree, justice can and must be done. This Government are determined to hold those responsible to account, and will continue to make rapid progress on compensation and redress.
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Post Office Horizon: Redress
Gareth Thomas Excerpts(3 weeks, 2 days ago)
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The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)
The delivery of redress for victims of the Post Office Horizon IT scandal is a key manifesto commitment for this Government. As part of our commitment, I have been actively considering whether the Department for Business and Trade should take on responsibility for the redress schemes currently managed by the Post Office. This is something that postmasters, campaigners and parliamentarians, including the Business and Trade Select Committee, have called for.
I am today announcing that the Department’s Horizon convictions redress scheme (HCRS) will broaden its scope and take on responsibility for redress for postmasters who have had their convictions overturned by the courts.
There will be a three-month transition period to allow for the smooth transfer of active claims from one scheme to the other. At the end of May 2025, claims for redress under the Post Office’s overturned convictions scheme will be transferred into the HCRS and the Post Office will cease to be involved in the administration of redress for overturned convictions. From Tuesday 3 June, all existing and new overturned convictions claims will be processed by the Department for Business and Trade.
There will be no gap in service for postmasters who have claims in the system. During the transition period, the Post Office will continue to actively progress claims towards settlement. The Department is already working with the Post Office to ensure that the transfer process is as smooth as possible for individuals and will work with them and their legal representatives throughout the process. Our intention is for a seamless transition for existing claims.
The assessment framework for HCRS was deliberately aligned with the principles for decision in the overturned convictions scheme to ensure fairness of outcome across the two schemes. All postmasters can therefore expect consistency of treatment between the HCRS and overturned convictions schemes.
In advance of 3 June, I encourage all those eligible to apply for redress under the overturned convictions scheme to continue to engage with the Post Office, which is committed to continuing to process existing claims swiftly until the transfer date.
As I have previously indicated, I am considering whether responsibility for delivering the Horizon shortfall scheme should also be transferred to the Department. I will make a separate statement about that in due course. We have already committed to running the Horizon shortfall scheme appeals process within the Department, rather than allowing it to be run by the Post Office.
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Growth Guarantee Scheme
Gareth Thomas Excerpts(1 month, 2 weeks ago)
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The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)
I wish to make Members aware of the details of a proposed variant of the existing growth guarantee scheme that is designed to increase uptake by businesses of green assets that facilitate the transition to a low-carbon economy.
The GGS was launched on 1 July 2024 and is facilitated by the Government-owned British Business Bank and delivered through its delivery partners. Under the scheme, lenders offer facilities of up to £2 million to support businesses that would otherwise be unable to access the finance they need, or would only be able to do so on worse terms.
Green GGS uses the infrastructure of the existing GGS programme to help increase the supply of affordable finance for businesses investing in green technologies. Lenders face uncertainty over the future value of these green assets in the instance of borrower default, due to the pace of technological advances and a lack of observable track record or data in the relevant second-hand markets. As a result, lenders raise the up-front cost of financing green assets to mitigate this uncertainty, or simply choose not to finance the green asset. This in turn dampens business demand for green investment.
The BBB’s GGS variant is designed to address this uncertainty by setting a floor on losses that a lender would take if a borrower defaulted on the loan. This would give lenders the confidence to support finance for green assets or lower the up-front cost of that finance, increasing the supply of finance available to small and medium-sized enterprises to invest in green assets. The terms of the programme ensure that the benefit of the guarantee is passed to the business.
Initially, the British Business Bank will reallocate funding from the existing GGS to pilot this scheme with a single lender, facilitating an initial portfolio of £30 million of investment in green assets. There will be no change to the maximum lending facilitated across both GGS variants, which will remain at £2.2 billion, as notified to Parliament by means of a written ministerial statement made on 24 May 2024. Any future proposed increase in the capacity of green GGS will be notified as applicable.
I will be laying a departmental minute today containing a description of the liability undertaken.
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Closure of High Street Services: Rural Areas
Gareth Thomas Excerpts(1 month, 3 weeks ago)
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The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)
It is a pleasure to serve under your chairmanship, Ms Furniss. In the usual way, let me, too, congratulate the hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone) on securing this important debate.
We have heard a series of powerful speeches from Members from Northern Ireland and from the Liberal Democrat Benches, and some particularly strong speeches from my hon. Friends the Members for Na h-Eileanan an Iar (Torcuil Crichton), for Rushcliffe (James Naish), for South West Norfolk (Terry Jermy), for Bury St Edmunds and Stowmarket (Peter Prinsley), for Monmouthshire (Catherine Fookes) and for Scarborough and Whitby (Alison Hume). I note in passing that not one Conservative Back-Bench MP or Reform MP is present to champion rural areas. I gently say to the shadow Minister that if the previous Government had done a slightly better job, this debate would perhaps not be necessary.
I will address as many of the points that have been raised as I can, but let me first say this. It goes without saying that our high streets play a vital role in providing a place for communities to come together, work, socialise, shop and access essential services. I very much share the passion of Members across the Chamber for ensuring that all communities in rural areas have access to those services, wherever they are in the UK. Rural areas offer significant potential for economic growth. More than half a million businesses are registered in rural areas, and the rural economy contributes more than £315 billion a year in England alone. The Government are committed to improving the quality of life for people living and working in rural areas, in part so that we can realise the full potential of rural businesses.
If a high street or town centre is to flourish, residents, businesses and councils must work together to develop their own unique offer for the high street that resonates with the local community. That is why this Government are focused on our five-point plan to breathe life back into Britain’s high streets: addressing antisocial behaviour and retail crime, reforming the business rates system, rolling out banking hubs, stamping out late payments, and empowering communities to make the most of the vacant properties with which rural communities, and indeed urban ones, are all too familiar. We have already made progress on that plan.
My Department is working with others across Government to ensure that we do all we can to create thriving high streets now and long into the future. Our small business strategy, which we will publish later this year, will set out further plans to support small businesses on the high street and beyond. We want to support efforts to ensure that all our high streets are places for our businesses, local people and visitors, creating jobs and economic growth wherever they are in the UK. When thinking about solutions to the future of the high street in rural areas and more generally, we need to recognise that no two high streets are the same, and that the way we live and work is evolving quickly.
A series of hon. Members raised the issue of high street banks and branch closures. The UK branch network is now below 5,000—half what it was in 2015—and although the banks point to the increasing use of digital channels for day-to-day banking, access to cash and in-person banking services are still essential for many, not least the elderly and the vulnerable, who often need face-to-face engagement to get their banking sorted.
Jim Shannon
I commend the Minister for his response. My constituency has lost the most banks—I think we have lost 12 over the years. It is obscene and immoral that the banks are making exorbitant profits, in the hundreds of millions, at the same time as they close branches and deny pensioners and vulnerable people the right to bank access. Has the Minister spoken to the banks about their immorality in relation to their profits, and their dedication and responsibility to vulnerable people?
Gareth Thomas
We certainly want the banking industry to do more to work with us as a Government to ensure that there is much better access to financial services, in particular for small businesses. Too often, one of the big pressures facing small businesses is accessing the finance they need to expand and thrive. We know that good access to finance for small businesses is not universal; that is a challenge not only in rural areas, but more generally. We will continue to press the financial services industry generally, and banks specifically, in that space.
The Government have said that accessing physical banking services is important, which is why we are working closely with banks to roll out 350 banking hubs to provide people with critical cash and banking services on their doorstep. The hubs offer basic counter services, provided by post office staff, that allow people and businesses to withdraw and deposit cash, deposit cheques, pay bills and make balance inquiries. Many hubs also have dedicated rooms where customers can see community bankers from their own banks to discuss things such as staying safe from fraud, adding a lasting power of attorney, making payments or registering for online banking.
David Chadwick
Ystradgynlais is the biggest town in my constituency, and it has a catchment area of 24,000 people. People there tell me that they experience long waits when they go to use the post office, and that post office staff have lost cheques and made other errors that have created problems for local businesses. Does the Minister agree that a post office is no substitute for a functioning bank branch run by trained staff?
Gareth Thomas
Having some Welsh blood, I am instinctively sympathetic to the hon. Gentleman’s constituents. I would not put it in quite the way that he did, but if he and his constituents have concerns about the service that the post office provides in his constituency, I am happy to take those up. Perhaps outwith this debate, he might drop me a line or have a word; I am certainly willing to press the post office. I will come back to the question of post office banking services.
Just before Christmas, the Chancellor opened the 100th banking hub in Darwen in Lancashire. Out of the 100-plus that have now opened, 12 are located in Scotland, seven in Wales and five in Northern Ireland. This is just the start. I am pleased that Cash Access UK and LINK have announced that over 200 banking hub locations have been recommended, including a further four in Wales, one in Northern Ireland and 17 in Scotland. Among those will be a new banking hub in Wick, as the hon. Member for Caithness, Sutherland and Easter Ross mentioned. I acknowledge his work and campaigning for the banking hub in Wick, which I hope goes some way to addressing the concerns in his constituency that he mentioned.
On the question of banking hubs, I should say that where they are located is determined independently by LINK, the operator of the largest ATM network in the UK. An access to cash review can be requested via its website, which also sets out the criteria it uses for considering locations for banking hubs. These include population size, whether other banks remain nearby, the number of small and medium-sized enterprises on the high street and public transport links, as well as the level of vulnerability in the community.
When it comes to big high street banks pressing ahead with closures, we expect all banking firms to follow closely the Financial Conduct Authority’s branch closure guidance in supporting their customers.
Mr Angus MacDonald (Inverness, Skye and West Ross-shire) (LD)
Will the Minister allow me to intervene?
Gareth Thomas
I apologise to the hon. Gentleman, but he has only just rocked up to the debate, so if he will forgive me, on this occasion I will not give way. If there is a specific issue about which he wants to write to me, I would be happy to look at it.
Hon. Members will know that the FCA engages with banks and building societies to ensure that the impacts of branch closures on customers are properly considered. Where firms fall short, the FCA can and will ask for a closure to be paused or for other options to be put in place. Some banks also provide pop-up services, with a community banker visiting a library or a community centre to offer support where other options are not available. I understand that that has been the case in the constituency of the hon. Member for Caithness, Sutherland and Easter Ross following the announcement of the closure of the Bank of Scotland branch in Golspie, and that Lloyds Banking Group will be providing a pop-up community banking service on a regular basis to support local people with banking services.
For a number of reasons, we are beginning to look at what else the Post Office can do to improve its banking offer, and I hope to say a little more about that in a moment. When the local high street bank closes, the alternative option for accessing everyday banking services in person is the post office. As our economy has modernised and evolved, so too have our local post offices. Today, they are much more than just a place to send letters and parcels. They increasingly act as basic high street banks, but also as access points for some Government services and, in many places, as community hubs for an array of different activities, generating tremendous social capital in our communities. So it is right that the Government hold the Post Office to account to ensure there is enough provision across the country. We protect the post office network by setting minimum access criteria. At all times, we want 99% of the UK population to live within three miles of a post office and 90% to live within one mile.
Edward Morello
The Minister seems to be outlining very succinctly the failure of the banks to provide a service and the importance of post offices in providing services. I am struggling to understand why the Government are punishing the Post Office with national insurance contribution rises while maintaining the Tory tax cuts for the banks, so will the Minister explain why we are rewarding the people who are failing us and punishing those who will now provide this service to us?
Gareth Thomas
The hon. Gentleman will know that the Government had a very difficult fiscal inheritance and had to make some very tough choices in the Budget back in October.
We continue to provide a subsidy to the Post Office of some £50 million to ensure that the loss-making parts of the network can be maintained. Indeed, just before Christmas we provided a further £37.5 million to support the Post Office network this year. We are working with the senior leadership team at the Post Office on future opportunities, beginning with banking, so that the company can increase its product offers and commercial revenue while reducing its costs, as well as improving the service to all our constituents.
I heard the specific concerns raised by my hon. Friend the Member for Na h-Eileanan an Iar, whose constituency includes Stornoway, about the future of the directly managed post office in his constituency. No decisions have been made on the future of all the directly managed branches, but I know he will continue to campaign on the issue.
We want our post offices to form part of healthy, bustling high streets. Like the post office itself, our high streets have had to adapt quickly to the post-covid economy. High streets have faced more than their fair share of challenges in recent years, in terms of vacancies opening up—an issue that my hon. Friend the Member for Bury St Edmunds and Stowmarket referred to. That is why in December we brought forward new powers for councils, which can now force landlords to rent out unsightly, vacant, boarded-up properties via high street rental auctions. The new regulations will make town centre tenancies more accessible and affordable, giving local businesses and community groups a right to rent valuable space on their local high street. I welcome the fact that Bassetlaw, Darlington and Mansfield are already working with us as early adopters to help to learn how the new power can be used to make a difference.
We have also announced our intention to introduce a new community right to buy, empowering residents to address decline and protect valuable spaces such as pubs, theatres and cinemas, and thereby keeping those assets in the hands of the local community. We are investing in further initiatives to boost town and city centres, including by maintaining the high street accelerators that bring together the local community, businesses and property owners to work in partnership with their council to regenerate and revive local high streets.
My hon. Friend the Member for Rushcliffe referred to our work to improve and reform the business rates system. That was a key manifesto pledge that we are beginning to deliver on, with permanently lower tax rates for retail, hospitality and leisure properties, including those on the high street, from 2026-27. We have published a discussion paper to explore what else we can do in this space.
My hon. Friend the Member for South West Norfolk referred to issues to do with digital connectivity. He will be pleased that we are committing over £500 million next year to deliver Project Gigabit and the shared rural network to roll out broadband and 4G connectivity, which will support growth in rural areas and beyond.
Digital connectivity is one consideration for rural communities but, as hon. Members have rightly pointed out, physical connectivity is another. For people in far-flung communities, especially those without a car or family living nearby, getting to the high street can be extremely difficult. We recognise that challenge and are responding in turn with more than £650 million for local transport outside city regions in 2025-26. The Department for Transport will say more about how that funding will be used shortly.
We are also providing more than £1 billion of funding to support and improve local bus services and keep fares affordable wherever we can. In December we introduced the Bus Services (No. 2) Bill that will put control over local bus services back in the hands of local leaders right across England. It is intended to ensure that bus services reflect the needs of the communities that rely on them.
I thank the hon. Member for Caithness, Sutherland and Easter Ross and all Members who participated in this debate for their contributions. High streets are the beating heart of all our communities. The services they provide are essential for the people and businesses they serve. As a Minister with a key interest in this area, I look forward to continuing to work with hon. Members to help to improve local high street services in their communities.
High Street Retailers
Gareth Thomas Excerpts(1 month, 3 weeks ago)
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The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)
It is a pleasure to serve under your chairmanship, Mr Turner. In the usual way, I congratulate the hon. Member for East Londonderry (Mr Campbell) on securing today’s important debate, and I apologise to him and to other Members for getting my timing slightly wrong. I will make a point of reading the early part of this debate in Hansard a little later.
We have heard contributions from the hon. Member for East Londonderry and my hon. Friend the Member for Hamilton and Clyde Valley (Imogen Walker), but also important interventions from a series of hon. Members. In the short time available to me, I will probably not be able to do full justice to all those interventions, but let me try to pick up at least one or two of the points made.
Crucially, we need to underline the fact that retail has a key role to play in supporting high streets in every corner of the UK—particularly in Northern Ireland, given the focus of this debate, but more generally across the UK as well. In 2023, the retail sector contributed about £110 billion to our economy: just under 5% of the total UK economy. It remains a very high employment sector, directly supporting 2.9 million jobs across the UK in 2023. In short, retail is the backbone of our high streets and remains a key driver to support economic growth.
I recognise that recently there have been concerning stories in the media about the challenges that retailers are facing, and I know that that is a concern for Members across the House. We know that retailers are facing a series of economic headwinds, as well as dealing with the challenges of changing consumer shopping habits and the rise of online shopping. A thriving high street will continue to need a strong retail offering, helping to drive growth in local economies and supporting local communities. Never has it been so important to help retailers—particularly the small and independent retail businesses to which a number of Members, not least my hon. Friend the Member for Bournemouth East (Tom Hayes), have referred—to grow.
Adrian Ramsay (Waveney Valley) (Green)
The Minister rightly talks about the importance of supporting small and independent businesses. One thing that those businesses rely on is having access to banking, but banks are closing, which has a particular impact in rural communities. For example, my constituents have lost Barclays in Harleston and this year are due to lose Lloyds in Halesworth and Beccles. Will the Minister outline the progress that the Government are making on their pledge to roll out far more banking hubs so that local communities and businesses keep access to banking in their market towns and areas?
Gareth Thomas
I thank the hon. Gentleman for that intervention. My right hon. Friend the Chancellor of the Exchequer opened the 100th banking hub very recently, and I know from figures that Cash Access UK and LINK have published that 200 locations for banking hubs have been identified; that is part of the commitment to roll out 350 banking hubs.
But we want to do more. The Post Office plays a key role in offering banking services, particularly as banks themselves have exited the high street, and we are beginning work with the Post Office to strengthen its banking offer on the high street. I heard very clearly the intervention from my hon. Friend the Member for Hampstead and Highgate (Tulip Siddiq) about the directly managed branch in her constituency. I recognise the importance of post offices to all our high streets. She will know that no decision has been made on Hampstead—or, indeed, on any other directly managed branch—but I know she will continue to campaign on this issue.
To support businesses, the Budget honoured the manifesto commitment not to raise corporation tax. It set out the tax road map for this Parliament, in which we will not change corporation tax, which means we have the lowest rate in the G7. All that will support businesses, including retailers, to invest.
As the hon. Member for East Londonderry is aware, retail is a devolved matter. I welcome measures such as the Back in Business rate support scheme, which has been created to incentivise business rate payers to consider occupying empty retail premises. Vacancy is a blight on too many of our high streets and town centres across the country and it can fuel a spiral of decline. That is why Government in all forms need to work together with local communities and businesses to strengthen the offer.
Mr Campbell
The Minister rightly points out the devolved nature of much of retail. Does he agree that the chronic level of VAT, which is not devolved—it is a matter for the Treasury—compared with our neighbour in the Irish republic is having a detrimental effect on retailers?
Gareth Thomas
The hon. Member may want me to go straight from this debate to the Treasury to get an immediate concession.
Gareth Thomas
That is generous of him. I will take that question away and look at it. I know that that is an issue particular to Northern Ireland. He will understand that it is not immediately the responsibility of the Department for Business and Trade, but I will none the less take a look at it.
Matt Rodda
Could the Minister provide a brief update on progress towards reforming business rates? It is a popular policy with many small businesses—particularly independent retailers in my area, who appreciate the Government’s work on this matter. They would be grateful for further updates.
Gareth Thomas
I am grateful to my hon. Friend. The Chancellor of the Exchequer announced in the Budget in October the intention to permanently lower the level of business rates for retail, hospitality and leisure. She published a discussion paper at the same time to involve the business community in further discussions about what else we can do in the business rates space. I strongly encourage hon. Members across the House to encourage businesses in their communities to get involved in that debate. That makes all the more striking the point made by my hon. Friend the Member for Hamilton and Clyde Valley about the approach of the SNP Government in Scotland not to get behind businesses. I hope that her speech was listened to and will be acted on by those currently in government in Scotland.
Hon. Members will know that more widely we have introduced high street rental auctions, enabling local authorities to tackle decline on the high street by bringing vacant units back into use. We are already working with three local authorities to begin to learn the lessons of how that new power works.
Gareth Thomas
Forgive me, but I have only 2.5 minutes. If I missed something and the hon. Gentleman wants to write to me, I will be happy to reply.
I have touched on business rates reform. We want to introduce a new business growth service to simplify the support available for all small businesses and bring it under one single trusted banner. We will set out further reforms in that regard in our small business strategy, which we will publish later this year.
Since I took office, I have been in engaging with the industry-led Retail Sector Council, which is a collaborative forum made up of widely experienced senior figures from across all parts of the retail industry, helping us and indeed other Government Departments to think through the challenges facing the retail sector. One of those big challenges is about how we tackle retail crime.
Shop theft continues to increase at an unacceptable level, with more and more offenders using violence and abuse against shop workers. Recent figures from the British Retail Consortium’s annual crime survey show that violent and abusive incidents were up by more than 50% last year, and retailers are reporting 55,000 thefts a day. That is why clamping down on that behaviour is one of the first steps that we are taking to deliver safer communities, including delivering on a specific commitment for a new offence of assault on a shop worker. We are also ending the effective immunity that the previous Government granted to help stop theft of goods under £200.
We all know that retail businesses are hugely important to our constituents and to our high streets. I thank the hon. Member for East Londonderry for giving the House the opportunity to raise this important issue. I am happy to take up further specific concerns that any hon. Member has in this space.
Question put and agreed to.
Local Post Offices
Gareth Thomas Excerpts(1 month, 3 weeks ago)
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The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)
I echo the thanks to the hon. Member for Taunton and Wellington (Gideon Amos) for securing this important debate. There have been some very clear and consistent messages from across the House to the Government in this debate, and I pay tribute to the passion with which hon. Members on all sides of the House have raised key constituency concerns, as the hon. Member for West Worcestershire (Dame Harriett Baldwin) said.
We have heard from my hon. Friends the Members for Dulwich and West Norwood (Helen Hayes), for North Durham (Luke Akehurst), for Great Grimsby and Cleethorpes (Melanie Onn), for Dunstable and Leighton Buzzard (Alex Mayer), for South East Cornwall (Anna Gelderd), for Bermondsey and Old Southwark (Neil Coyle), for Chelsea and Fulham (Ben Coleman), for Glasgow North East (Maureen Burke), for Bournemouth West (Jessica Toale) and for Leeds South West and Morley (Mark Sewards). I know that my hon. Friend the Member for Manchester Withington (Jeff Smith) has particular concerns about Didsbury post office. We also heard from the hon. Member for South West Devon (Rebecca Smith), the right hon. Member for Orkney and Shetland (Mr Carmichael), the hon. Member for South West Hertfordshire (Mr Mohindra), the hon. Member for Didcot and Wantage (Olly Glover), the hon. Member for Stockton West (Matt Vickers), the hon. Member for Boston and Skegness (Richard Tice) and the hon. Member for Thornbury and Yate (Claire Young), and I know you, Madam Deputy Speaker, have concerns in this space, too.
Post offices provide hugely important everyday services to millions of people across our country. Communities rightly expect to have access to those essential services, just as they would to a GP surgery, a primary school or neighbourhood police. That is because, as many Members made clear, post offices are the very beating heart of our towns and villages.
As our economy has modernised and evolved, so too have our local post offices. Today they are so much more than a place to send letters and parcels. They act as high street banks, as many have said, as access points for some Government services, and as community hubs for an array of different activities, generating crucial social capital. Indeed, after the unearthing of the Horizon scandal, the nation’s unanimous support for sub-postmasters and their campaign for redress and exoneration shows how revered the post office and its workers are by the British public—by all of us.
We are working as fast as we can to give sub-postmasters the compensation they deserve, and we are indeed exploring what further steps we can take. But since the end of June, in just the six months that we have been in office, more than 1,000 more sub- postmasters who are victims of the scandal have received compensation. The amount paid out in redress has increased by over £355 million, more than double the amount that had been paid out at the time of the general election. As of 3 January, almost £600 million had been paid to over 3,800 sub-postmasters across all four main compensation schemes. Also as of 3 January, the GLO—group litigation order—scheme had received 453 claims of which 370 are fully complete and the remaining 83 are being assessed for their completeness or undergoing a request for further information that would unlock a more generous offer of compensation. We expect then to have paid substantial redress, even if the claims are not fully settled, to the majority of GLO claimants by 31 March. But let me be clear: there are still complex cases to resolve and there is still much more to do in terms of compensation.
The hon. Member for West Worcestershire, speaking for the Opposition, asked about Capture. We have identified a number of gaps in the compensation process. We published in particular the Kroll report into what had happened in terms of the Post Office use of the Capture software prior to the installation of the Horizon system. We are beginning to talk to sub-postmasters who used the Capture software about redress going forward so that we can design an effective redress scheme. The hon. Lady and the House may be aware that there are a number of cases where there were convictions that appear to relate to use of the Capture software by the Post Office that are with the Criminal Cases Review Commission at the moment.
The hon. Lady also asked about the timing of when we might hear the Sir Wyn Williams conclusions. As she will understand, we as the Government do not want in any way to be seen to be rushing Sir Wyn Williams. We have heard a similar timescale as her—sometime later this year—and we will all wait with considerable interest for the conclusions.
The hon. Lady also asked about the Ofcom consultation. I stress that it is still a consultation. Ofcom will be consulting for some 10 weeks and, as she would expect, we will be fully engaged in that process.
On the future of the post office, we all know that our high streets have faced huge challenges in recent years. In some cases, the presence of a post office on a high street has been a game changer in driving footfall and attracting custom to other businesses. The public—as many Members have alluded to, it is often the elderly, those who use cash and those who are digitally excluded—rely on the post office for essential services. It is therefore right that the Government hold the Post Office to account to ensure that there is enough postal service provision across the country, and I recognise my particular responsibility in that regard.
We protect the post office network by setting minimum access criteria. With a network of this size, we are likely to see fluctuation in the number of branches open at any one time, but crucially, the access criteria ensure that regardless of how the network changes, services remain within local reach of people at all times. The Government recognise the key role that post offices play in their communities and how branches in rural areas in particular often act as community hubs. We are listening carefully to stakeholders to ensure that the whole network, including those branches, is sustainable.
Mr Carmichael
Does the Minister agree that the manner in which the Post Office allowed the information about the closure of directly managed branches to come into the public domain was unacceptable? What is he doing to ensure that the Post Office treats communities with better respect than that in the future?
Gareth Thomas
I gently say to the right hon. Gentleman that we are where we are, and it is important that we move forward. I will come to the question of directly managed branches in a second.
To ensure that we are planning properly for the future, we will publish a Green Paper before the summer to seek the public’s views, insights and experiences to help shape the future of the Post Office. In the meantime, we are taking steps to continue to support the network. Along with the annual £50 million subsidy, we have provided a further £37.5 million to support the Post Office network next year.
Our thinking on the future of the post office will also be influenced by Sir Wyn Williams’s conclusions. We continue to support and encourage the chair of the Post Office, Nigel Railton, to shift the focus of the Post Office away from headquarters and towards postmasters. The Post Office, with our support, is reviewing its costs, as its financial position continues to be challenging. We are working with the senior leadership at the Post Office on future opportunities, beginning with banking, so that the company can increase its product offers and commercial revenue going forward. The Post Office has set up a new consultative council that will work with senior management on how these new plans are taken forward. It is a first, but none the less important step to change the culture of the Post Office.
Building a sustainable future for the Post Office is imperative. It has had many false new starts. Nearly half of its branches are not profitable or make only a small profit from post office business. Postmaster pay has not increased materially for a decade. Mr Railton is looking to deliver a reduction in the Post Office’s costs and, as I have alluded to, an increase in its commercial revenues. He has also set out an intention to transform the service and the support that postmasters receive from the Post Office, which we have strongly encouraged. He has announced ambitions for a new deal for postmasters, and I am pleased that the Post Office recently made a £20 million immediate one-off payment to postmasters to increase their remuneration.
On the future of directly managed branches, I appreciate that it is challenging for communities that lose their post office service. I speak from experience, having had Harrow’s directly managed branch close in 2016 and transfer to a franchise service instead. I am always happy to challenge the Post Office on specific concerns that Members have at constituency level. However, the Post Office operates as a commercial business, and the company has the freedom to deliver the branch network within the parameters we set.
I know there is concern about the future of DMBs, and it is important to underline that no definitive decisions have been taken on the future of any individual directly managed branch. I have made clear to the Post Office that there must be discussions with unions and other key stakeholders. I am pleased to hear that the Post Office has seen positive engagement from independent postmasters and strategic partners, who have expressed their interest in taking on DMBs. It is encouraging that there continues to be such interest in the chance to run a post office.
Neil Coyle
I look forward to working with the Minister on the future of the franchise in my constituency. Is he aware that there were 373 Crown post offices in 2010 but that by 2024 that number had fallen to 115? The shadow Minister either did not know that figure or did not want to admit it.
Gareth Thomas
Funnily enough, I am aware of that statistic; my hon. Friend makes his point powerfully.
We were clear in our manifesto that that we would seek to strengthen the Post Office network in consultation with postmasters, trade unions and customers, and that remains very much our ambition. That is one of the reasons why we are working closely with the Post Office in providing funding to support the replacement of the Horizon computer system. The Post Office’s future lies particularly in cash and banking. With the right support from the financial services industry and engagement with groups such as Cash Access UK, there is clearly more that the Post Office could offer on the high street through banking hubs and the Post Office network. We are beginning to work with the Post Office to improve its banking offer on the high street.
The Government are strongly committed to ensuring the long-term sustainability of the Post Office. It is a national asset that provides an invaluable public service in all our constituencies. There are certainly challenges ahead, but we continue to work with the Post Office to ensure that it is fit for the future. We always welcome views on the network. I thank those hon. Members who secured the debate and all other hon. Members for their contributions.
Oral Answers to Questions
Gareth Thomas Excerpts(1 month, 3 weeks ago)
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Jade Botterill (Ossett and Denby Dale) (Lab)
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)
Sarah Bool (South Northamptonshire) (Con)
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)
Sir John Whittingdale (Maldon) (Con)
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.
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)
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)
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)
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.
Max Wilkinson (Cheltenham) (LD)
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)
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.
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.
Horizon Shortfall Scheme Appeals Process
Gareth Thomas Excerpts(1 month, 3 weeks ago)
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The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)
In September 2024 the Secretary of State announced that the Government would be introducing an independent Horizon shortfall scheme appeals process. This will help ensure that all HSS claimants have the full opportunity to receive fair compensation and reflects a recommendation from the Horizon compensation advisory board.
During my December statement to the House, I promised that I would provide an update in the new year.
First, I can confirm that my Department is in the final stages of procuring a contract for its legal advisors on appeals cases, which will include an initial assessment of each postmaster’s case. We will also be appointing a separate firm as secretariat for the scheme’s independent panel and reviewer shortly, once the procurement process is complete.
My officials will shortly send to both appellants’ representatives and the advisory board a draft of detailed principles and guidance. These will ensure that the HSS appeals scheme is fit for purpose and provides a satisfactory outcome for affected postmasters, in line with the advisory board’s recommendation. They will also establish the eligibility criteria. We will continue to engage both groups on all aspects of the scheme.
I can also announce that this Government are committed to covering the reasonable costs of postmasters obtaining legal advice at each stage of the appeals process. As with appeals under the group litigation order and horizon convictions redress schemes, we will do this using a legal tariff. We strongly encourage potential appellants to take up this offer and only seek the advice of firms who have signed up to these tariffs. We are working with appellants’ legal representatives so that we can establish these tariffs as soon as possible.
Clarity about the principles of the scheme and our support for appellants’ legal costs will mean that legal representatives can begin to produce cases for appeal. We expect that the first cases will be ready for submission in the spring.
Eligible postmasters within Post Office’s HSS dispute resolution procedure will receive a letter in spring inviting them to transfer their case to HSS appeals. I will provide a further update to the House nearer to that time.
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