Oral Answers to Questions

Kelly Tolhurst Excerpts

Tuesday 19th March 2019 Commons Chamber

[Henry Smith (Crawley) (Con)]

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

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

We are backing young entrepreneurs by launching an independent review, led by the Prince’s Trust, to understand how we can better support them to turn their business dreams into reality. We are backing small and medium-sized enterprises with our spending power, with our ambitious strategy to ensure that at least £1 in every £3 we spend as a Department is spent with smaller businesses by 2022.

[Ben Bradley]

I thank the Minister for bringing forward the future high streets fund, which will be really important for small businesses on Mansfield High Street, and for the meetings I have been able to have with the Government about how to make sure that Mansfield can benefit. The council is now consulting with stakeholders on its proposals. Will Ministers agree to meet me so that I can make the case for Mansfield’s bid to the future high streets fund?

[Kelly Tolhurst]

My hon. Friend is right. High streets are changing, and the Government are committed to helping communities adapt. In the Budget, we set out our plan for high streets, with a £1.6 billion package to support the sustainable transformation of our high streets, which includes the future high streets fund. My hon. Friend is a passionate campaigner for his town, and I would very much welcome the opportunity to hear his proposals for the regeneration of Mansfield town centre, coupled with the investment and plans already being put in place through the growth deal.

[Stephen Metcalfe]

Will the Minister join me in acknowledging the welcome focus the Government have put on tackling late payment to small businesses? Will she confirm that improvement in payment times could release billions of pounds back into the economy to ensure that our SME sector remains vibrant and thrives?

[Kelly Tolhurst]

I thank my hon. Friend for his question, and he is quite right. Tackling late payments will indeed do just as he says. It is true that late payments can be extremely damaging for small businesses, and that is why we are committed to tackling it. In his first year, the Small Business Commissioner has managed to collect over £2 million owed to small businesses. In the spring statement last week, we announced a requirement on audit committees to review their payment practices. I look forward, in the very short term, to bringing forward a full package of policy measures to tackle just that.

[Henry Smith]

Last weekend, I was pleased to support High Street Saturday in Crawley town centre. Will my hon. Friend welcome the £900 million in business rate reductions, which is really starting to help small businesses on our high streets?

[Kelly Tolhurst]

I thank my hon. Friend for giving me the opportunity to welcome this cut in business rates. He will also be pleased to hear that, because of the updated forecasts from local authorities, the discount is now worth nearly £1 billion to retailers over two years, further bolstering this Government’s plan for the high street, which is now worth £1.6 billion, and directly benefiting some of our smallest retail businesses. My hon. Friend is a great campaigner for Crawley, and I am sure he will continue to ask questions on this subject.

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

With just 10 days to go to a possible no-deal Brexit, only a third of the small businesses that trade exclusively with Europe have applied for and received their so-called EORI—economic operator registration and identification—numbers that will enable them to continue to do so. Those numbers could be allocated automatically by Her Majesty’s Revenue and Customs. Will the Minister lobby HMRC to tell it to do that, and back British business?

[Kelly Tolhurst]

The hon. Gentleman raises a very important point. It is true that we are making sure, as this Department is charged to do, that small businesses are absolutely aware of their obligations in regard to a no-deal Brexit. I would point out to him that HMRC is reissuing those numbers within 24 hours of small businesses applying.

[Emma Hardy (Kingston upon Hull West and Hessle) (Lab)]

Staff working insecure hours for the Hull-based small business Grotto Hire UK, which operates Santa’s grottos, have still not been paid, and many are owed thousands of pounds. The company owner offered to put the company into liquidation so that the staff could claim through the insolvency fund, but his appointed liquidators have now pulled out, leaving the company still running. Will the Minister please meet me to discuss this appalling situation and look at how the company can be wound up in the public interest?

[Kelly Tolhurst]

The point that the hon. Lady raises is really important, especially for her constituents. I will be more than happy to meet with her to discuss those issues.

[Tim Farron (Westmorland and Lonsdale) (LD)]

Small businesses and our high streets are hugely damaged by the closure of bank branches right across the country, which nets the banks, which we bailed out with taxpayers’ money, a vast amount of money in savings. Will the Minister consider a windfall tax on the banks to ensure that we redistribute some of that money back into our high streets to support small businesses?

[Kelly Tolhurst]

The hon. Gentleman raises an important point. Tax is a responsibility of the Treasury, but as he will know, including after our conversations yesterday—this was also alluded to earlier in questions—post offices are still an important part of our high streets, and the Post Office is currently negotiating a new banking framework. It is absolutely right that, when banks are pulling out of our high streets, the post offices that are delivering the services are remunerated correctly for that.

[Bill Esterson (Sefton Central) (Lab)]

The duty for large companies to report how quickly they pay their suppliers is of course welcome—80% of businesses that fail do so as a result of late payments—but to be effective, the new duty to report will need some teeth, such as binding arbitration and fines for persistent offenders. This Government’s use of sanctions against the poorest has been disgraceful, so how about using sanctions against some of the most powerful and making sure that large corporations treat their small business suppliers fairly?

[Kelly Tolhurst]

Late payments and the way that some large businesses have behaved in the past have been an issue for decades, and it is this Government who are prepared to make changes and bring forward policies to reduce them. We know that late payments can be incredibly damaging for businesses. That is the reason for the Chancellor’s announcement last week about the responsibility of committees to look at payment practices, and I look forward to making further proposals.

[Steve Double (St Austell and Newquay) (Con)]

6. What steps he is taking to support the UK space industry.

--- Later in debate ---

[Giles Watling (Clacton) (Con)]

T4. A couple of weeks ago, I attended a business briefing in Tendring where I met some of the wonderful entrepreneurs in my area. They just want certainty. They just want us to get the job done. What is the Department doing to protect those businesses as we leave the European Union?

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

Our business environment is among the best in the world. By reducing corporation tax and investing in skills, innovation and productivity-boosting schemes, we are supporting businesses to compete in an ever-changing market. Ensuring that businesses can access finance is key, and the British Business Bank has the tools to make that happen, including its enterprise finance guarantee scheme, start-up loans and our export strategy.

[Patrick Grady (Glasgow North) (SNP)]

T2. Just days after hundreds of children in Glasgow joined the thousands around the world campaigning for action to tackle climate change, a massive cyclone and devastating floods have hit Mozambique, Malawi and other parts of central Africa. What steps is the Department taking, working with the Department for International Development and the Foreign and Commonwealth Office, to help developing countries to mitigate and tackle the causes and effects of climate change?

--- Later in debate ---

[Kevin Hollinrake (Thirsk and Malton) (Con)]

T7. The all-party parliamentary group on fair business banking and finance is dealing with several cases, including those of Keith Elliott and Julia Davey, that raise serious questions about inappropriate links between insolvency practitioners and banks, specifically KPMG, PwC and Lloyds Bank. What action is the Minister taking to remove such conflicts of interest?

[Kelly Tolhurst]

My hon. Friend is a passionate campaigner in this area and for his constituents, and he knows that I would particularly like to tackle this matter. Insolvency practitioners must adhere to the insolvency code of ethics and must not allow conflicts of interest to override the fundamental principles of objectivity. Breaching the code may result in regulatory action, such as a fine, reprimand or, in the most serious of circumstances, the removal of a licence. The code is currently being updated by the recognised professional bodies that license insolvency practitioners, but I will continue the dialogue with my hon. Friend on this matter.

[Carol Monaghan (Glasgow North West) (SNP)]

T6. As a result of IR35, small contractors who provide services to the public sector are paying more tax than regular employees but without benefits such as holiday pay or sick pay. What discussions has the Secretary of State had with the Chancellor on revising IR35?

[Kelly Tolhurst]

The hon. Lady raises an important point, but she knows we are doing a lot in this area to strengthen employment rights for people in the workplace. We have the good work plan, we are looking at flexibility, we are increasing holiday pay and we are always looking at how we can improve the situation for workers, whether the self-employed or general workers.

[Vicky Ford (Chelmsford) (Con)]

T10. Last week the Chancellor announced investments in genomics, photonics, quantum computing and nuclear fusion. Does my right hon. Friend agree that investments in world-class innovation bring economic benefits for all?

--- Later in debate ---

[Maria Caulfield (Lewes) (Con)]

Post offices are at the heart of our communities, so does the Minister welcome the news that Newick post office in my constituency, after being closed for months following the sad death of the postmaster, Terry, is set to reopen? Does she agree that we must do all we can to keep post offices open in our rural communities?

[Kelly Tolhurst]

I thank my hon. Friend for the work she has done with her constituents, the Post Office and the community to make sure that the post office in Newick is reopened. Post offices play an important role in our communities, and we are committed to maintaining the network of 11,500 post offices with the support of MPs like her.

[Liz McInnes (Heywood and Middleton) (Lab)]

T9. In my constituency, the Crown post office in Middleton is to be closed and franchised into WHSmith, the consultation on which has just finished. As if that were not enough for one constituency, a consultation has just begun on moving the Heywood post office into an empty shop with an as yet unidentified retailer. Does the Minister agree that that consultation is a sham and that our post offices are both national institutions and part of our communities?

[Kelly Tolhurst]

As the hon. Lady knows after our meeting yesterday afternoon to discuss this issue, we are committed to delivering and maintaining the post office network, which did not happen under the last Labour Government, when there was a reduction. As I have already outlined and made very clear, where there are concerns about specific branches, practices and consultations, I will personally raise them directly with the Post Office.

[Martin Vickers (Cleethorpes) (Con)]

Will the Secretary of State give an update on the next phase of the Greater Grimsby town deal?

--- Later in debate ---

[Mr Virendra Sharma (Ealing, Southall) (Lab)]

At the last general election, Labour promised to introduce a “Post Bank” to combat financial exclusion and ensure that everyone has access to banking services in their community. Does the Secretary of State agree that introducing a Post Bank to provide banking services in post offices would do wonders for the high street, as well as reducing financial exclusion?

[Kelly Tolhurst]

The hon. Gentleman gives me an opportunity to talk about the fact that we already offer banking services in our post offices. As I outlined earlier, we are doing the most we can to make sure that post offices and sub-postmasters are remunerated for the work they do.

[Several hon. Members rose—]

[Stephen Crabb (Preseli Pembrokeshire) (Con)]

Barclays has just announced another swathe of branch closures that affect my constituency, as the banks continue their flight from small towns and rural areas. Where does the Minister think all this will end? Does she agree that banks have a wider social obligation?

[Kelly Tolhurst]

I agree with my right hon. Friend that banks have a wider social responsibility. That is why I am committed to working with the Post Office to make sure that under the new banking framework post offices are remunerated correctly for the service they are providing for communities that the banks have moved away from.

[Mike Amesbury (Weaver Vale) (Lab)]

Fracking is bad for the environment, our health, our democracy, our landscape and even the courts. Does the Minister recognise that the Government are on shaky ground, quite literally, and will they ditch their support for this failing industry?

--- Later in debate ---

[Dr Philippa Whitford (Central Ayrshire) (SNP)]

A common feature of all patient safety scandals is that whistleblowers were ignored, intimidated or lost their careers, and were not protected by the Public Interest Disclosure Act 1998. Will the Secretary of State bring forward legislation for all sectors to ensure that that concern is investigated and that whistleblowers are protected?

[Kelly Tolhurst]

The hon. Lady addresses a very important area that I am extremely concerned about. The Department for Business, Energy and Industrial Strategy is working closely with the Department of Health and Social Care on how we can best strengthen the protection for whistleblowers within the NHS to support families and staff who raise concerns. This is a key area for us and I will continue to communicate with her on it.

[Several hon. Members rose—]