Oral Answers to Questions

Kelly Tolhurst Excerpts

Tuesday 30th April 2019 Commons Chamber

[Sir David Amess (Southend West) (Con)]

1. What steps his Department has taken to promote youth entrepreneurship.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Kelly Tolhurst)]

First, I would like to update the House: unfortunately, my right hon. Friend the Minister for Energy and Clean Growth will be unable to join us this morning due to a family illness.

Our young people provide an invaluable contribution to the UK economy—they are more than twice as likely to be entrepreneurs as their peers in France and Germany—and we are supporting them. The start-up loans programme has provided over £60 million in loans to 18 to 24-year-olds since 2012. To further realise young entrepreneurs’ potential, I have asked the Prince’s Trust to lead a review to identify the barriers that they face.

[Sir David Amess]

In 2017-18, recent graduates from the University of East Anglia set up 247 start-ups employing 1,015 people. Will my hon. Friend reassure me that the Government will continue to fund these schemes, as they mean so much to young people and help to create a vibrant economy?

[Kelly Tolhurst]

I thank my hon. Friend for that question. Through our industrial strategy, we recognise the valuable contribution from the creation of spin-outs and start-ups by businesses from university. That is why we have committed to increasing higher education innovation funding from £160 million to £250 million per year by 2020-21. This will help to increase universities’ capacity to engage in commercialisation and work with business.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

Is the Minister aware that recent research from Sheffield University and King’s College London shows that young entrepreneurs face a very bleak future? In particular, the impact of leaving the EU on many of the very constituents who voted leave is a drop of between 17% and 20% in GDP. That is ruinous for so many of our industrial towns. What is she going to do about it?

[Kelly Tolhurst]

The hon. Gentleman makes a valid point, but it is true that young people in the UK are twice as likely to be entrepreneurs as those in France and Germany. Our percentages for young entrepreneurs are significantly higher. We are committed to our industrial strategy. I have asked the Prince’s Trust to undertake the review so that we understand specifically what the barriers are for young people and come up with a package to be able to help them.

[Mr Philip Hollobone (Kettering) (Con)]

I congratulate the Minister on her inspired decision to appoint the Prince’s Trust, which is a wonderful organisation that does magnificent work. Will it concentrate on 18 to 30-year-olds, and when is she expecting it to report?

[Kelly Tolhurst]

I am grateful to my hon. Friend for allowing me to highlight some of the details of the youth entrepreneurship review. It has started and the board will be announced shortly. It will be looking at 18 to 30-year-olds, and we are hoping that it will report in the autumn. He is absolutely correct: the Prince’s Trust does amazing work with young people from all types of background. In fact, there is already a programme with the Prince’s Trust and Innovate UK that provides mentoring to young people and makes available loans of up to £5,000.

[David Linden (Glasgow East) (SNP)]

The Scottish Government’s 2018-19 Budget means that 90% of firms in Scotland pay lower rates than they would if they were based elsewhere in the UK. Given that 55% of individuals will pay less tax than they would in the rest of the UK, what lessons do the Government plan to take in terms of supporting Scotland’s young entrepreneurs and those elsewhere in the UK?

[Kelly Tolhurst]

The hon. Gentleman highlights specific differences within Scotland, but we are interested in making sure that young people are able to follow their dreams and aspirations whichever part of the country they happen to be in. We are announcing the young entrepreneurs review so that we can look at all the different barriers, including access to finance—something that the Government and I, as the small business Minister, take very seriously—and make sure that we create the right environment for our small businesses to start up, thrive and grow.

[Theresa Villiers (Chipping Barnet) (Con)]

2. What steps he is taking to support small businesses.

[Sir Henry Bellingham (North West Norfolk) (Con)]

10. What recent steps he has taken to support small businesses.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Kelly Tolhurst)]

Small businesses are the backbone of our economy, employing over 16 million people, and they make a collective contribution of over £2 trillion. We have provided nearly £5.9 billion of finance to over 82,000 small businesses across the UK. We have also just announced an additional £200 million for innovation for British business.

[Theresa Villiers]

What discussions has the Minister had with landlords running small businesses about the proposed abolition of section 21 notices? We all want to help renters, but we need to take care that we do not pass new laws that might actually make it harder for vulnerable people to get rented accommodation.

[Kelly Tolhurst]

I thank my right hon. Friend for her question. We want both to encourage good landlords to stay in the sector and to make sure that proposals do not impact on supply. The Ministry of Housing, Communities and Local Government will be consulting landlords and looking at similar changes in Scotland. However, I reassure her that we recognise that small landlords, or incidental landlords, may have different requirements and they will therefore be very much part of the consultation.

[Sir Henry Bellingham]

Will the Minister join me in paying tribute to Snap-on UK Holdings in King’s Lynn in my constituency? It now employs 141 people and has recently won two Queen’s awards for enterprise and international trade. It is currently exporting to France, Poland, Italy and Spain, and it is trying to open up markets in Asia and Africa. What can she do to encourage other businesses in the country to follow Snap-on’s example and boost their exports, boost our economy and create jobs?

[Kelly Tolhurst]

I thank my hon. Friend for highlighting the excellent work of Snap-on UK Holdings, which has won a Queen’s award for enterprise. Businesses in North West Norfolk have benefited from 60 start-up loans, totalling nearly £500,000. They also have the growing business fund, which provides grants of up to £500,000 per business, where there is an opportunity to innovate and grow and create jobs.

[Gerald Jones (Merthyr Tydfil and Rhymney) (Lab)]

Small businesses often rely on each other for mutual support; that is certainly the case in my constituency. Will the Minister please explain to her colleagues in the Department for Work and Pensions how detrimental it would be for small businesses and the town centre economy if they relocate 250 jobs out of Merthyr Tydfil town centre as part of their push to centralise jobs and services?

[Kelly Tolhurst]

The hon. Gentleman raises an important point about our high streets. Obviously, the Government play an important part in that respect in making decisions that affect our regions. I would like to reassure him about what we are doing for high streets and the retail sector. With the Retail Sector Council, we are looking at business costs and elements around skills and employment on the high street. We remain committed to making sure that our high streets remain the heart of our communities. I will make sure that I do everything in my capacity as Minister to achieve that.

[Jim Shannon (Strangford) (DUP)]

Can the Minister outline any initiatives that are being considered to offset high street rates to encourage businesses to not only trade online but have a presence in local high streets? Some of my constituents have done that, and they have been quite successful.

[Kelly Tolhurst]

The hon. Gentleman makes an important point with regard to traditional retail and online sales. I have spoken with the likes of Amazon and eBay, and one thing I have been extremely surprised at is that they have worked with small businesses that have started online but then invested in bricks-and-mortar retail outlets. We need to work to make sure we have a mixed economy, and I have outlined the work we are doing with the Retail Sector Council, particularly looking at business rates and other issues.

[Andrew Griffiths (Burton) (Con)]

I congratulate the Minister on the work she does for small businesses. She will know that one of the major challenges small businesses face is not just with late payments but with getting prompt payments and reasonable terms from bigger businesses. Will she ensure that the Government do all they can to end the scourge of late payment? Will she also ensure that the prompt payment code has some teeth so that it actually does the job it is supposed to?

[Kelly Tolhurst]

I thank my hon. Friend for highlighting prompt payment. It is a particular focus within the Department to tackle late payments, which can be very damaging to small businesses. This week, the Chartered Institute of Credit Management has announced that there are 17 businesses that I have removed or suspended from the prompt payment code to make sure that we highlight where bad practice is occurring. We want to bring business with us. We do know that late payments can have a major impact on small businesses, and I therefore stand committed to ensuring that we do all we can as a Government to end this poor practice.

[Stewart Malcolm McDonald (Glasgow South) (SNP)]

This morning I met Matt Dowling of the Freelancer Club, who adumbrated to me some of the terrible situations that freelancers have faced when trying to be paid, often being coaxed into working for nothing for things like experience. Will the Minister meet me and Mr Dowling to discuss how we might crack down on that?

[Kelly Tolhurst]

Absolutely. I reiterate that this Government do not support the culture of poor payments and late payments. The hon. Gentleman is absolutely right to raise the concerns of those in a particular sector who might face trouble getting paid for legitimate work. I would be very happy to meet him and that organisation.

[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

3. What assessment he has made of the effect of uncertainty of the UK’s trading relationship with the EU on the delivery of the industrial strategy.

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[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Kelly Tolhurst)]

I regularly meet representatives of the supermarket sector, both individually and through the Retail Sector Council, to discuss a range of issues. One issue that the council has identified as a priority is employment. The Government have committed themselves to upgrading workers’ rights and protecting the most vulnerable workers in all sectors through the good work plan. That represents the biggest upgrade of workers’ rights for over 20 years.

[Siobhain McDonagh]

I apologise for arriving late, Mr Speaker. I am delighted to have the opportunity to ask the Minister to support Mrs A, who has worked for Asda for 30 years. Her take-home pay, and that of 3,000 other members of staff, will be cut because of changes in the pay structure masquerading as an hourly increase. Paid breaks will be reduced, the night shift will be changed, and bonuses will be slashed. Will the Minister join me in supporting Mrs A and ensuring that she keeps what she is earning now?

[Mr Speaker]

The hon. Lady was not late for her own question. Her principal responsibility is to be in her place to ask her question, and we are delighted to see her. She does not need to be too apologetic; in fact, she does not need to be apologetic at all.

[Kelly Tolhurst]

The hon. Lady is absolutely right to raise those questions. She is a strong campaigner for workers in her constituency, and we have met on a number of occasions to discuss some of the issues involved. Obviously we want Asda employees to receive the remuneration to which they are entitled. It is true that a consultation is taking place on changes that may be introduced towards the end of the year, but, in general, terms and conditions are subject to negotiation between the employer and the employee. While it is always open to either party to enter into negotiations on the terms of contracts, if employees are subject to changes in terms to which they have not agreed, they can take legal action.

[Stephen Kerr (Stirling) (Con)]

The Minister is right to champion workers’ rights, because ours is the party of the workers. However, there are still too many examples of employers not paying the national living wage. What further steps will the Government take to ensure that the national living wage is enforced and workers receive a fair day’s pay for a fair day’s work?

[Kelly Tolhurst]

I thank my hon. Friend for raising that issue. He is right: we are the party of the workers, which is why we introduced the good work plan, the biggest reform of workers’ rights for 20 years. We are committed to enforcing the national minimum wage and ensuring that people receive the remuneration that they deserve. Her Majesty’s Revenue and Customs has identified £24.4 million of arrears that affected more than 200,000 workers last year, which was an increase on the previous year. We have almost doubled the budget for enforcement since 2015, and we remain committed to ensuring that people receive the national minimum wage when they are entitled to it.

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[Gill Furniss (Sheffield, Brightside and Hillsborough) (Lab)]

On 4 April, the Office for Product Safety and Standards published its investigation into Whirlpool and the ongoing issue of its product safety. The report was lambasted by consumer organisations, including Which?, as weak. Just days later it was revealed in the media that Whirlpool allegedly paid one consumer to stay silent after she was forced to flee with two young children as a blaze engulfed her home after her dryer had been modified. Can the Minister tell us whether the OPSS was aware of those allegations and, if not, whether it will now reopen its investigation in light of the accusations?

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Kelly Tolhurst)]

I thank the hon. Lady for raising this issue, and I commit to making sure that I speak to the OPSS about the allegations she has highlighted and what further information we can ascertain. She is right, in that I laid a written ministerial statement before the House on 4 April. I have to let the House know that the OPSS has written to Whirlpool asking it to take action, and it has 28 days to reply to that. I stand ready, as the Minister, to make sure that consumer safety and protection is at the heart of what we are doing and that we take further action where necessary.

[Scott Mann (North Cornwall) (Con)]

T7. Many of my constituents still access some form of off-grid energy. While the Department looks to introduce a cleaner form of energy, will it also look at the cost impact of energy? Many of these people are also in fuel poverty and would like not only a clean form of energy, but a cheap one.

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[Helen Whately (Faversham and Mid Kent) (Con)]

Shared parental leave is a good option for new parents, but the Secretary of State will know that take-up remains low. Will he consider introducing a stand-alone period of parental leave just for partners, to help families to balance work and childcare?

[Kelly Tolhurst]

I thank my hon. Friend for raising this issue. She is a keen champion of rights for parents. I agree that fathers and partners have a key role to play in caring for their children. The shared parental leave and pay scheme gives parents more choice and flexibility and challenges the assumption that the mother will always be the primary carer. Last year, the Government ran a £1.5 million campaign to promote shared parental leave and to increase its take-up, and we are preparing a further campaign for later in the year. I assure my hon. Friend that we always keep these things under review. I am keen to meet her in the near future to discuss her particular concerns.

[Jessica Morden (Newport East) (Lab)]

T6. The Government’s industrial strategy has recently drawn criticism for neglecting steel. The UK steel charter was mentioned earlier; will Ministers attend the launch of the charter on 20 May and sign up to it on behalf of the Department, to maximise opportunities for UK steel in uncertain times?

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[Stephanie Peacock (Barnsley East) (Lab)]

My constituent was made redundant from Carillion last April after 11 years’ service as a cleaner. She has been passed from pillar to post, from PwC to the insolvency services. Will the Minister please look into this case as a matter of urgency?

[Kelly Tolhurst]

I would welcome it if the hon. Lady passed me the details of her constituent, so that I can follow up that matter.

[Peter Heaton-Jones (North Devon) (Con)]

In North Devon, we are proudly playing our role in clean energy generation with two major wind farms. Does the Minister agree that, to ensure our security of supply and to get the best climate change outcomes, we need a mix of clean energy generation?

[David Hanson (Delyn) (Lab)]

The enterprise finance guarantee scheme and its continued use by the Royal Bank of Scotland is still causing controversy. Even this week, we have seen discussions from the hon. Member for Thirsk and Malton (Kevin Hollinrake) around the use of debt. Will the Minister, or the Department, discuss with the Treasury how this scheme and its legacy are now operating?

[Kelly Tolhurst]

I thank the right hon. Gentleman for raising that matter at BEIS questions today. I will happily take on that challenge.

[Martin Vickers (Cleethorpes) (Con)]

Small businesses in Cleethorpes are suffering because of yet another two high street bank closures. Individuals and businesses need both the counter services and expert financial advice from banks. Indeed, banks are important to the vitality and viability of our high streets. Will Ministers assist local authorities in establishing financial hubs, where financial institutions can come together and provide that service?

[Kelly Tolhurst]

My hon. Friend is absolutely right to raise concerns about banks pulling out of our high streets. Those concerns have also been raised by many other MPs across the country. High street banks do offer a valuable service for consumers, and that is why I am grateful to the Post Office for renegotiating the banking framework, which will offer better payments to postmasters providing banking services in those high streets. However, he is quite right: we do need to work closely with local authorities at a regional level to make sure that the services being offered on the high street are those that people wish to see.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

Will the Minister confirm that the Secretary of State for Scotland put in writing his objection to onshore wind finding a route to market in Scotland? Why will the Government not release that correspondence in the interests of transparency?

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[Robert Courts (Witney) (Con)]

I know—from chairing the all-party parliamentary group for small and micro-business, and from talking with west Oxfordshire businesses—that one of the major challenges that small organisations face is finding sufficient people of the right skills to grow their businesses. What are Ministers doing to provide a national strategy to ensure that our young people have the skills they need for the future?

[Kelly Tolhurst]

I congratulate my hon. Friend on his work as chair of the all-party parliamentary group; he is extremely passionate about this subject and does a lot to champion small businesses in his constituency. We have outlined a £1.3 billion investment in UK talent and skills to attract the best. We are also keen to work with businesses—particularly small ones—to ensure that we are delivering on our apprenticeship targets. We have seen some fantastic results when young people have been brought into organisations and been given the training and workplace experience to grow and thrive. I very much hope to champion such schemes as we go forward.

[Ruth George (High Peak) (Lab)]

The other week, I was shocked to meet a constituent who had worked in care for nine months solidly without being given a single day off, while on a zero-hours contract. Such workers, who are vulnerable, need protection for their rights at work. Will the Secretary of State look at bringing in group claims for industrial tribunals and representative cases so that workers do not have to stick their head above the parapet?