Oral Answers to Questions

Kevin Hollinrake Excerpts

Tuesday 17th January 2023 Commons Chamber

[Stephen Hammond (Wimbledon) (Con)]

16. What steps he is taking to support small and medium-sized businesses.

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

It is absolutely right that we direct support where we can to our SME community. We have reversed the national insurance rise, saving SMEs approximately £4,200 a year on average; provided £13.6 billion of business rates support over five years; cut fuel duty for 12 months; and raised the employment allowance to £5,000. The energy bill relief scheme is also protecting SMEs from high energy costs, as will, from April, the energy bills discount scheme.

[David Simmonds]

Before Christmas I held a session with hospitality businesses in my constituency. Although they were appreciative of the energy bill relief scheme, they expressed some concern that they were not necessarily seeing it reflected in their bills. What assurances can my hon. Friend provide to ensure that companies, such as Hop and Vine in Ruislip High Street, see Government support reflected in reduced energy costs?

[Kevin Hollinrake]

The £18 billion energy bill relief scheme is set out clearly in legislation, so it should be applied in a uniform way by all licensed suppliers. The regulations include a robust monitoring compliance and enforcement regime. Suppliers are required to inform customers about the details of support, including the amount of the discount and the supply price, to ensure transparency. That will also be the case with the energy bills discount scheme, which starts in April.

[Maggie Throup]

Many SMEs are facing increasing pressure to agree lengthy payment terms of up to 90 days as a prerequisite to securing contracts with larger firms. That has significant cash-flow implications for businesses that already operate on a tight margin. To support further SMEs such as those operating across Erewash, will my hon. Friend commit to working with Treasury colleagues to review the UK’s payment terms regulations with a view to reducing the maximum credit period, as has happened in Germany?

[Kevin Hollinrake]

I thank my hon. Friend for raising that point. This is a very significant problem for many businesses, particularly micro-businesses. Our prompt payment and cash flow review will examine business behaviours and small business experience of late payment and long payment terms, to help ensure that the UK has arrangements in place to best support small businesses. It will include looking at the payment reporting obligations and a review of the role of the Small Business Commissioner.

[Stephen Hammond]

Wimbledon’s clubs and pubs are at the heart of our community and, like my hon. Friend the Member for Ruislip, Northwood and Pinner (David Simmonds), several have asked me how the Government will ensure that the scheme meets the needs of hospitality. Will my hon. Friend ensure that Ofgem takes action against suppliers whose actions damage small businesses in my constituency and across London?

[Kevin Hollinrake]

My hon. Friend raises a very important point. My r hon. Friend the Minister for Energy and Climate and I recently had a roundtable with energy suppliers to discuss exactly that point: ensuring that the support the Government are providing is passed on to SMEs. The energy suppliers assure us that that is happening. We have asked Ofgem to take a closer look at that and it will report back to us shortly.

[Mr Speaker]

I call the Chair of the Business, Energy and Industrial Strategy Committee.

[Darren Jones (Bristol North West) (Lab)]

Britishvolt, the once valued £3.8 billion site of national importance for the production of electric vehicle batteries in our country, is today going into administration. Does the Minister agree with me that the future of UK car manufacturing relies on UK battery production? If so, what is he going to do about it?

[Kevin Hollinrake]

The hon. Gentleman raises a very important point. It is important to note that we have not withdrawn any money from Britishvolt, but clearly British taxpayers’ money is important and it is important that we dispense that money in a responsible way. There are clear milestones that we expect anybody in receipt of public money to hit. We are looking at the situation very carefully to make sure that they are doing so.

[Samantha Dixon (City of Chester) (Lab)]

In Chester, we are fortunate to have a high street full of wonderful small and medium-sized businesses. The Chancellor’s announcement of cuts to the energy bill relief scheme from April will be devastating to many of those businesses. The cost of living crisis continues, yet the support is being pulled. Does the Minister agree that businesses need support to continue driving our economy?

[Kevin Hollinrake]

I do agree that we need to continue to support businesses. The £18 billion energy bill relief scheme package was very generous. We are now seeing prices moderate, which will help lots of SMEs, and particularly the high street businesses to which the hon. Lady referred. The replacement scheme—the EBDS—is another £5.5 billion of taxpayers’ money. We have to be careful in terms of balancing the books and being responsible with the public finances, but I absolutely agree that businesses need continued support, which is what they are getting from the replacement scheme and from several other measures I mentioned in my first answer.

[Mr Gregory Campbell (East Londonderry) (DUP)]

In the next few months small businesses will, like many others, face massively increased council tax bills here in Great Britain and rates bills in Northern Ireland. Does the Minister agree that the early payment discount scheme should be looked at and revised to 4% or 5% across both domestic and non-domestic council tax and rates payers?

[Kevin Hollinrake]

Most of the businesses that we deal with pay business rates rather than council tax, but we nevertheless have to make sure that the schemes are as affordable as they can be, which is why we have stepped in with £13.6 billion of business rate discounts, targeted at SMEs. We have to look at the ongoing situation and make sure that support is available, as we are doing in many different respects, not least by helping those small businesses that have premises.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

AMLo Biosciences is a Newcastle University spin-out whose groundbreaking research will save lives by making cancer diagnosis easier and more accurate. AMLo spends millions on research and reinvests all its research and development tax credits into R&D. The Government’s tax credit changes will halve what AMLo can claim, meaning less research and fewer new jobs. Its investors may ask for it to move abroad, where R&D is cheaper. Many Members have similar examples in their constituencies. Will the Minister explain why the Government issued no guidance, gave no support and had no consultation on the changes to SME R&D tax credits? Does he accept that whether in respect of hospitality heating bills or spin-out science spend, the Government are abandoning small businesses?

[Kevin Hollinrake]

Clearly, we have to balance the interests of the taxpayer with the interests of small business. We have to make sure that the money that is being utilised for R&D is properly spent, and there were concerns about abuse of the small business R&D scheme. It is good that the Treasury is now looking into the matter and looking to move towards a simplified universal scheme, which I would welcome and on which there is a consultation. I absolutely agree that we need to make sure we have the right support for research and development in this country, not least for SMEs.

[Nick Smith (Blaenau Gwent) (Lab)]

7. What assessment he has made of the adequacy of the number of onshore wind farms developed in England since 2015.

--- Later in debate ---

[Ian Lavery (Wansbeck) (Lab)]

15. What steps he is taking to help ensure the effective provision of postal services.

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

Ofcom has a duty to ensure the provision of a financially sustainable and efficient universal postal service. Ofcom oversees Royal Mail’s contingency plans to mitigate disruption to universal postal services, and it continues to closely monitor Royal Mail’s performance.

[Ian Lavery]

Does the Minister share my deep concerns about the creeping increased shareholding in Royal Mail by Vesa Equity Investment, a company whose chief executive, Daniel Křetínský, has close ties to Russia? What guarantees can the Minister give about the future of our cherished, 500-year-old Royal Mail?

[Kevin Hollinrake]

As I say, we have no plans to change the universal service requirements of the postal service. This Government are proud of their credentials on foreign direct investment, and we encourage foreign investment into this country. I notice from the global chief executive officer survey today that the UK is third in the world in terms of the places where people want to invest, and we want to make sure that that continues. We looked at this matter from a national security perspective and we did not feel there was an issue, so we welcome that investment.

[Kelly Tolhurst (Rochester and Strood) (Con)]

Sadly, a long-established post office will be closing in my constituency in November, owing to an expansion of the pharmacy there, which is a success story. Many businesses locally, including the council, are desperate to take on a post office franchise. Will the Minister meet me to make sure we can secure Rochester’s having a post office after November?

[Kevin Hollinrake]

Of course I will meet my hon. Friend; I have suffered closures of post offices in my constituency, so I know how difficult this is. We are committed to maintaining a network of 11,500 post office outlets and making sure that 99% of the population are within 3 miles of a post office. I am keen to meet her to see what we can do in this instance.

[Mr Speaker]

I call the shadow Minister.

[Kevin Hollinrake]

The Royal Mail is facing a difficult year—there is no doubt about it. One reason quoted in the update from the Regulatory News Service—this is a regulator-issued news bulletin, so it has to be accurate—on why the company has gone from a profit to a loss was the industrial action by the Communication Workers Union, which is putting tremendous strain on the Royal Mail and its customers, many of whom are going elsewhere, and indeed on the post office network. Will the hon. Lady condemn the fact that this is causing extra difficulties for the Royal Mail and some of these financial problems?

[Holly Mumby-Croft (Scunthorpe) (Con)]

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

--- Later in debate ---

[Stephen Hammond (Wimbledon) (Con)]

T4.   Wimbledon is one of the best places for young diverse entrepreneurs to start up. The recent London Chamber of Commerce and Industry report suggested that there were problems and additional problems for those entrepreneurs to access finance. What exactly are the Government doing to make sure that access to finance is open to as many people as possible?

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

The UK, including Wimbledon, is one of the best places in the world to start a business, as evidenced by the OECD report. My hon. Friend is right to raise the issue of access to finance, particularly for diverse groups. The Start-Up Loans Company has provided £1 billion of loans to around 100,000 businesses, including £2 million of loans to businesses in his constituency, and 40% of those loans go to people from a black, Asian and minority ethnic background.

[Dame Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)]

There is an inconsistency in how the public sector is required to report greenhouse gas emissions. That makes it difficult to keep a track on progress as we approach net zero, and difficult for citizens to hold the public sector to account on delivery. What is the Minister doing to rectify that so that we can keep a proper track on what is happening?

--- Later in debate ---

[Gareth Thomas (Harrow West) (Lab/Co-op)]

Last year, a pay transparency came into law in Colorado. It requires employers to publish the salary range when they advertise for jobs, saving considerable amounts of time, and sometimes costs, for would-be employees. Would such a common-sense rule not be good for British job applicants and employers, too?

[Kevin Hollinrake]

That is an interesting point. We are looking at pay reporting, especially in larger companies. We want to minimise the burden of regulation on smaller companies, of course, but the hon. Gentleman raises an interesting point, and we will have a close look at it.

[Dame Andrea Leadsom (South Northamptonshire) (Con)]

My right hon. Friend knows only too well our energy triple challenge of keeping the bills down, keeping the lights on and decarbonising. As chairman of the 1922 Backbench committee on Business, Energy and Industrial Strategy, I draw his attention to the fact that we have just published a report on the future of energy. In my humble opinion, the report is packed full of incisive and actionable policy suggestions. May I invite him to meet me and my vice-chairs to discuss it and the implications for his Department?