Oral Answers to Questions

John Glen Excerpts

Tuesday 11th February 2020 Commons Chamber

[Sir David Evennett (Bexleyheath and Crayford) (Con)]

9. What fiscal steps he is taking to help small businesses.

[The Economic Secretary to the Treasury (John Glen)]

The UK’s 5.8 million small businesses play a vital role in our economy. We have lowered corporation tax from 28% in 2010 to 19%. We have introduced the employment allowance, to reduce employers’ national insurance contributions bill by £3,000 every year, and we have reduced the business rates burden, so that more than 675,000 of the smallest businesses pay no rates at all.

[Anthony Mangnall]

Last week, Members from across the House came together to celebrate our beers, breweries and pubs. Will the Chancellor and his team raise a glass to our pubs and breweries and lower the duty on those institutions?

[John Glen]

The Treasury team love pubs, and we recognise the importance of pubs to the economy and to community life up and down this country; they provide a place to socialise and drink responsibly. That is why we have frozen the duty over six of the last seven years, which means that a pint of beer is 14p cheaper than it would have been otherwise, and we are now at a 30-year low in real terms.

[Sir David Evennett]

We all know that small businesses are the driver of growth and prosperity across our country, but too many struggle because of high business rates. Can the Minister confirm that the Conservative Government will extend the retail discount of 50% later this year, giving a much-needed tax cut to millions of small businesses on high streets across the country?

[John Glen]

I am delighted to confirm that the retail discount of 50% will operate from 1 April this year. We will also extend the discount to include cinemas and music venues, extend the duration of the local newspaper office space discount, and introduce an additional discount for pubs, worth £1,000, for up to 18,000 pubs up and down the country.

[Chris Evans (Islwyn) (Lab/Co-op)]

Most businesses in my constituency are microbusinesses employing one or two people. The biggest problem they have is larger firms not paying their bills on time. What measures can be put in place to ensure that larger companies pay small companies on time so that they can continue with their business?

[John Glen]

The hon. Gentleman is right to raise that point. That is why we have the Small Business Commissioner. We are working closely with trade bodies to ensure best practice. The Department for Business, Energy and Industrial Strategy leads on this, but we work closely with that Department so that more progress is made on this vital matter.

[Thangam Debbonaire (Bristol West) (Lab)]

But small businesses will be affected by the news over the weekend that there will not be frictionless trade and that the Government are insisting on not sticking to a level playing field, which will affect small businesses, whether they import or export. So what is the Chancellor of the Exchequer and his Department doing to prepare small businesses for the inevitable changes that that will bring?

[John Glen]

We are working closely with the representative organisations to understand those concerns, but it is important that we move forward, secure a free trade agreement and give certainty to small businesses. Their principal concern over the past year is a lack of progress, and it is our responsibility to remove that uncertainty and reach a clear position.

[Paul Holmes (Eastleigh) (Con)]

6. What steps he is taking to improve the UK's national infrastructure.

--- Later in debate ---

[Jim McMahon (Oldham West and Royton) (Lab/Co-op)]

12. What recent assessment his Department has made of the contribution to the public purse of tax paid by co-operative and mutual businesses.

[The Economic Secretary to the Treasury (John Glen)]

I recognise the positive impact that co-operatives and mutuals have across all sectors of the economy, including retail, agriculture and financial services. No assessment has been made of the amount of tax paid by co-operative and mutual businesses, but I note that the report last year from the all-party group for mutuals found that mutuals generate over £130 billion to benefit the wider economy each year.

[Jim McMahon]

It is a matter of fact that the three largest co-ops in this country pay more tax than Facebook, Amazon and Caffé Nero combined, so not only are they creating jobs but; they are also paying fairly into the Exchequer. Will the Minister meet me and representatives from the co-op and mutuals sector to discuss that part of the economy and make sure that Britain can thrive in an inclusive way?

[John Glen]

Yes, I will. There are 7,000 co-ops across the United Kingdom, employing nearly a quarter of a million people. I have had numerous meetings over the past two years with representatives of co-ops and mutuals, and we had a mutuals workshop last July. I am very happy to meet the hon. Gentleman to discuss the recent Manchester mutuals report and to see what we can do together.

[Mr Speaker]

I call Mike Wood.

[Mike Wood (Dudley South) (Con)]

Thank you, Mr Deputy Speaker—[Interruption.] I am sorry, Mr Speaker—it has been so long!

Perhaps I should declare an interest as a member of the Midcounties co-operative. Will my hon. Friend consider broadening the eligibility for social investment tax relief so that more mutuals and social enterprises can deliver excellent services and outstanding social value?

[John Glen]

I always listen very carefully to what my hon. Friend says. I think the best way forward would be for me to meet him to discuss his specific proposals and see what can be done.

[Seema Malhotra (Feltham and Heston) (Lab/Co-op)]

14. How many people will be affected by the 2019 loan charge after the Government have implemented the recommendations of Sir Amyas Morse’s review.

--- Later in debate ---

[Damian Hinds (East Hampshire) (Con)]

T6. Creditor enforcement action can greatly exacerbate the problems that people going through mental health crises can experience. May I commend the Chancellor and the Economic Secretary for the breathing space initiative, which will help to ease the pressure on those people and so many more?

[The Economic Secretary to the Treasury (John Glen)]

I thank my right hon. Friend for his comments, and I am very pleased that the breathing space scheme is moving forward. We published the impact assessment last week, and 700,000 people will benefit from the scheme next year when it comes into force. That number will rise to 1 million in the following year.[Official Report, 24 February 2020, Vol. 672, c. 2MC.]

[Mr Ben Bradshaw (Exeter) (Lab)]

Depending on which briefing to today’s newspapers was accurate, the infrastructure announcement will fund a grand total of either 250 or 1,000 miles of new designated cycleway. That is to be compared with the 1,800 being provided by the Labour Mayor in Manchester alone. How can a small city such as Exeter hope to get any of the help, resources or the powers it needs to deliver on the cycling infrastructure as it desperately wants to do?