Oral Answers to Questions

Jim Cunningham Excerpts

Thursday 6th March 2014 Commons Chamber

[Jenny Willott]

The hon. Gentleman raises an important point, and the Government take concerns from business about unfair payment terms very seriously. For example, as he says, receiving payments promptly can be critical to the survival of a small business. That is why the Department launched a discussion paper called “Building a responsible payment culture” at the beginning of December. It sought views on what unfair payment terms look like and whether legislative or non-legislative measures should be used to tackle them. The consultation closed at the end of January and we are currently analysing the responses. We will announce shortly what we want to do to tackle the issue.

[Mr Jim Cunningham (Coventry South) (Lab)]

6. In how many of the last 24 months net lending to business by banks has risen.

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

The most recent data from the Bank of England show that net lending to small and medium-sized businesses was positive in March, June and November, and the bank’s most recent trends in lending and credit conditions reports show that confidence is beginning to return, helped by interventions such as the business bank. Gross lending continues to be higher year on year, but there is still much more to do.

[Mr Cunningham]

When will the Government stop blaming the previous Government and everybody else and get the major banks such as Lloyds and HSBC actually lending to small businesses? Small businesses in my constituency and up and down the country are suffering very badly.

[Matthew Hancock]

In order to understand the problem that we are having to address, it is important to analyse why it came about. We all know why it came about—because of the under-regulation by the Labour party. It is absolutely true that gross lending increased by £4 billion in October 2013—the highest amount since 2009—so we are moving in the right direction. But there is much more to do to clear up the mess left by the Labour party.

--- Later in debate ---

[Mr Speaker]

It is always useful to have a bit of additional information.

[Mr Jim Cunningham (Coventry South) (Lab)]

T1. If he will make a statement on his departmental responsibilities.

[The Secretary of State for Business, Innovation and Skills (Vince Cable)]

My Department plays a key role in supporting the rebalancing of the economy through business to deliver growth while increasing skills and learning.

[Mr Cunningham]

Will the Secretary of State say what the latest position is regarding Hibu, as he met a small delegation of MPs some months ago to discuss the situation? He will know that many of the shareholders have lost a lot of money, especially those in Coventry.

[The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Jenny Willott)]

The hon. Gentleman is right that many people have lost significant amounts of money, and they are clearly keen to see action. The administrator has a statutory duty to report on the behaviour of Hibu’s directors, and that report is due before the end of May. At that point, the Secretary of State and the Insolvency Service will look at whether action needs to be taken to disqualify the directors.