Oral Answers to Questions

Kevin Hollinrake Excerpts

Thursday 18th May 2023 Commons Chamber

[Simon Fell (Barrow and Furness) (Con)]

17. What steps she is taking to help support the growth of small and medium-sized businesses.

[The Parliamentary Under-Secretary of State for Business and Trade (Kevin Hollinrake)]

The Government are providing better support in a number of ways, including through our network of 38 growth hubs across England, our Help To Grow management scheme and mentorships. We are improving access to finance, not least through our start-up loans and recovery loan scheme. We are removing barriers to trade for our SMEs. Those that are seeking to grow through exports can now access support through our UK Export Academy and UK Export Finance.

[Samantha Dixon]

Small and medium-sized businesses are the beating heart of Chester and our country’s economy, yet their costs have become crippling, with extortionate energy bills, staff shortages and businesses forced to shut their doors for good. Reports show that a record number of people are off work due to health reasons, notably an increase in mental health issues. What is the Government’s plan to put that right and help businesses in Chester and up and down the country?

[Kevin Hollinrake]

The hon. Lady raises an important point. The first thing we will do for any business is to ensure that the economy is growing, as it is. We are seeing much higher rates of growth than anticipated by many, and we are cutting the costs of doing business by halving inflation, which again is incredibly important for business. In the short term, we are providing support with £13.6 billion of business rate discounts. We put £23 billion into energy discount schemes, too. We also have a big programme, across government, to try to get 9 million people who are economically inactive back to work.

[Stephen Morgan]

Portsmouth’s fantastic small and family-run businesses tell me that after the Tories crashed the economy, they are struggling with rising business rates, supply chain issues and soaring energy costs. Why does the Minister not just adopt Labour’s plan to scrap business rates and replace them with a system fit for the 21st century?

[Kevin Hollinrake]

We would all like to reform business rates. When people in my constituency hear about Labour’s plans to scrap business rates, the question I always get is, “Where is the money coming from?” Business rates raise £22 billion in England alone. I have heard Labour’s plans to scrap business rates. Which taxes will be increased to make up that shortfall? That is the question. We are reforming business rates to ensure that small businesses pay less, and providing short-term discounts. Labour cannot simply wipe away £22 billion without telling us where the money is coming from.

[Robbie Moore]

I recently had the pleasure of hosting a business roundtable in my constituency for small and medium-sized businesses, many of whom are proud of the products and services they want to export. Will my hon. Friend outline what additional steps the Government are taking to support small and medium-sized businesses in my constituency and across the UK that are looking to export their world-leading products to the global market?

[Kevin Hollinrake]

My hon. Friend is a great champion for his businesses across Keighley, and I thank him for the work he does. He will know that through our export strategy, “Made in the UK, Sold to the World”, we provide extensive support and advice to SMEs, whether they are considering exporting, learning about how to go about it, or expanding into new markets. UK Export Finance focuses on supporting SMEs so that they can secure export opportunities.

[Simon Fell]

Barrow-in-Furness is, I hope, about to enter a 25-to-30 year jobs boom thanks to the Government’s steadfast support for Dreadnought, AUKUS and the renewable energy projects up and down our coast. However, that causes issues for our local SMEs, which are struggling to retain and recruit, not least because of the geographical isolation of Barrow-in-Furness. May I invite my hon. Friend the Minister to cross the Pennines to speak to the SME cluster that I chair over there and hear some of their concerns? Does the Department have some specialist support to help those businesses leaning into this new economic challenge?

[Kevin Hollinrake]

I would be happy to cross the Pennines; I have been known to. It would be my pleasure to do that. What businesses want more than anything is to make sure that we have a growing economy, which we have, and that we are controlling costs by halving inflation. The next thing that businesses want is access to labour and skills. I attended the British Chambers of Commerce’s global event yesterday at the QEII Centre, and it was one of the key asks. We are doing many things on making the workplace more attractive: flexible working and, for example, carer’s leave. We have a programme across government to try to get those 9 million people who are currently economically inactive back to work. That can solve many of the problems, along with reform of childcare and other things. I am happy to come and listen to my hon. Friend’s businesses and find out the particular challenges they are facing.

[Mr Speaker]

I call the shadow Minister.

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

Twenty billion pounds! That is the amount of money currently held up in late payments—more than the entire science budget. It should be flowing to small businesses, allowing them to innovate, develop new products, create new jobs, drive our local economies or simply stay afloat. Instead, every day thousands of our great British small and medium-sized enterprises are wasting precious time and money chasing late payments, at an estimated cost of £684 million a year. For the sake of British business, will this Government take a leaf out of Labour’s policy book and properly legislate to tackle late payments to small businesses?

[Kevin Hollinrake]

Well, £90 billion is the amount of Labour’s uncosted spending plans, but let us talk about the £20 billion for now. The hon. Member is absolutely right to raise the issue of late payments. I attended a roundtable yesterday as part of our payment and cash flow review consultation, which is hugely important. We have significant engagement with businesses across the piece. We are determined and ambitious to reform the rules on late payments to ensure that businesses get paid on time. We have made significant progress in recent years in our international performance, so we are not an outlier. Nevertheless, we can and shall do more. The results of the consultation will be made available shortly.

[Layla Moran (Oxford West and Abingdon) (LD)]

2. If she will make an assessment of the implications for her policies of trends in the level of use of non-disclosure agreements by businesses in cases relating to sexual assault, harassment and misconduct.

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[Nadhim Zahawi (Stratford-on-Avon) (Con)]

3. What assessment her Department has made of the potential impact of the Digital Markets, Competition and Consumers Bill on levels of competition between businesses in digital markets.

[The Parliamentary Under-Secretary of State for Business and Trade (Kevin Hollinrake)]

The Digital Markets, Competition and Consumers Bill will establish a new pro-competition regime for digital markets. This will boost competition between businesses in digital markets, driving productivity, growth and innovation.

[Nadhim Zahawi]

The Competition and Markets Authority’s recent ruling blocking the acquisition of Activision Blizzard has made us an outlier. Its intervention in the nascent, innovative cloud gaming market was based on potential rather than real market power. You will know, Mr Speaker, that regulators have as much of a lever on growth in the economy as the Government. As we are doing in financial services, all regulators should have a remit for growth, and maybe—just maybe—we can call them “regulators for growth”.

[Kevin Hollinrake]

I am grateful to my right hon. Friend for his question. He may have noticed that we recently launched a paper, “Smarter Regulation to Grow the Economy”, so we absolutely agree with that point. Some of the measures it proposes are about ensuring that Ministers, officials and others look at alternatives to regulation, rather than jumping straight to regulation, and have an earlier impact assessment of what regulation would mean for businesses’ costs, rather than just looking at other factors. I absolutely agree with him that the best regulator is competition—the No. 1 thing we want to drive forward—which is also the best thing for growth. I am keen to talk to him about this matter in further detail after these questions.

[Martin Docherty-Hughes (West Dunbartonshire) (SNP)]

A huge element of growth in the digital market is the crypto industry. The European Parliament has just signed off the Markets in Cryptoassets Regulation. That ambitious and forward-thinking law gives the European Union the first rules to govern the crypto industry. When will this Government do the same?

[Kevin Hollinrake]

We are looking at the crypto sector carefully, and there was a report yesterday from the Treasury Committee on that matter. The crypto sector is moving at pace, and it is important that regulation keeps up with that. We have regulated already on some of the promotions around cryptocurrency, and it is something we will keep under scrutiny. I am sure my Treasury colleagues will be doing that even more than I shall.

[Jessica Morden (Newport East) (Lab)]

4. What steps she is taking to support the steel sector.

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[James Wild (North West Norfolk) (Con)]

9. What steps her Department is taking to improve the accountability of business regulators.

[The Parliamentary Under-Secretary of State for Business and Trade (Kevin Hollinrake)]

I am grateful to my hon. Friend for his fine work as part of the Regulatory Reform Group, which has just published a report. Last week the Government published “Smarter Regulation to Grow the Economy”, setting out our vision for the UK’s regulation and how we can harness the opportunities that Brexit presents to re-think how and when we regulate. As part of that, we set out our agenda to ensure that regulators help drive economic growth.

[James Wild]

I thank the Minister for his answer and for the reforms published last week. He kindly mentioned the Regulatory Reform Group and our report last week. Will he carefully consider our recommendations in the report on the Government better holding regulators to account, and look at the proposal for an accountability framework that looks at key metrics, including competition, to judge their performance?

[Kevin Hollinrake]

I read that with interest, and I spoke to my hon. Friend the Member for Hitchin and Harpenden (Bim Afolami) yesterday about the matter. It is important that all regulators with responsibility for regulating and promoting growth continue to be held to account for delivering on those objectives. His proposed joint committee of Members of both Houses is for the House authorities to consider, but I note that in a regulatory system that already has a number of accountability mechanisms, adding another layer could risk more uncertainty rather than clarity.

[Alison Thewliss (Glasgow Central) (SNP)]

Leaving the cost of formula up to the market has resulted in soaring prices, as Sky News has revealed this week. Parents are stealing formula from shops, relying on baby banks and formula foraging on Facebook, while profits and marketing spends of the companies have soared. Will the Minister instruct the Competition and Markets Authority to investigate the sector to protect our younger citizens?

[Kevin Hollinrake]

The CMA is an independent body that decides where it should intervene. We keep these matters under very close scrutiny. Competition is the best regulator. We have a very competitive market for the supermarkets. There are 14 supermarkets, all regulated by the Groceries Code Adjudicator. It is important that competition is allowed to play its role in driving down prices, but we will keep an eye on that.

[Geraint Davies (Swansea West) (Lab/Co-op)]

10. If she will make an assessment of the implications for her policies of the report by the Committee on Social Affairs, Health and Sustainable Development of the Council of Europe entitled “Safeguarding democracy, rights and the environment in international trade”.

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[Rachael Maskell (York Central) (Lab/Co-op)]

16. Whether it remains her Department’s policy to bring forward an employment Bill.

[The Parliamentary Under-Secretary of State for Business and Trade (Kevin Hollinrake)]

The best thing we can do to help people with employment is to have a strong economy with low unemployment, and I am pleased to say that we have both. Although there is no employment Bill, the Government are supporting six private Members’ Bills to deliver on our manifesto commitments: helping new parents and unpaid carers, giving employees easier access to flexible working and giving workers the right to request a more predictable working pattern. The Employment (Allocation of Tips) Act 2023 has also now completed its journey.

[Rachael Maskell]

According to Stop Hurt at Work, 27% of employees experience bullying or harassment at work. There is no legal definition of workplace bullying and no simple path to restitution. Although we have been promised employment legislation by this Government since 2017, and in the light of Matthew Taylor’s “Good work” report, we have not seen an employment Bill in this Parliament to protect workers at work. Can we expand employment rights in legislation to ensure that there is a clear path to restitution for people experiencing bullying at work?

[Kevin Hollinrake]

I point out that the unemployment rate in York is at a record low of 1.4%, which is below the national average, as I am sure the hon. Lady would welcome.

Since the good work plan was published, the Government have taken forward a wide range of commitments, including giving all workers the right to receive a statement of their rights on day one and the right to request a more predictable working pattern. I am very happy to meet the hon. Lady following these questions to discuss the points she raises.

[Mr Speaker]

I call the shadow Minister.

[Justin Madders (Ellesmere Port and Neston) (Lab)]

Ministers have promised an employment Bill more than 20 times, but they have consistently failed to deliver. It seems that not a week goes by without a company in the gig economy announcing that it is stripping back workers’ rights and protections, presumably because they are confident that this Government will not legislate to introduce protections in the gig economy. Will the Minister come clean on the Government’s plans? If they are not going to bring in any protections for gig economy workers, will he now apologise to them for another failed promise?

[Kevin Hollinrake]

Paying the national living wage is the law, and failing to pay workers the correct wage can result in significant fines, public naming and, for the most serious offences, criminal prosecution. The national living wage applies to all those who are classified as employees or limb (b) workers. If an individual feels that their employment status has been misclassified, they have the right to go to an employment tribunal.

[Peter Aldous (Waveney) (Con)]

T1. If she will make a statement on her departmental responsibilities.

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[Mr Philip Hollobone (Kettering) (Con)]

What would have been the answer to Question 19? How many businesses were supported by grant funding in North Northamptonshire during the pandemic?

[The Parliamentary Under-Secretary of State for Business and Trade (Kevin Hollinrake)]

Off the top of my head, I can say that during the pandemic the Government delivered an unprecedented package of support for businesses. In total, more than £22.6 billion was provided to businesses via local authorities. In Kettering, more than 5,000 covid-19 business grants were issued, amounting to £24 million. North Northamptonshire Council delivered £29.9 million to local businesses through the covid-19 business grant scheme.

[Marion Fellows (Motherwell and Wishaw) (SNP)]

T2. Dr Nikhil Datta from Warwick Economics noted that the £5.84 billion that UK consumers had paid in increased food prices by 2021 as a result of Brexit hit the poorest households hardest, as they spend a larger proportion of their income on food. Does the Secretary of State, the Minister or the UK Government accept that the most vulnerable households are paying the highest price for Brexit, especially in this ongoing food price inflation crisis?

[Kevin Hollinrake]

The hon. Lady raises an important point. As she knows, one of the Government’s commitments is to halve inflation, which will also have an impact on food prices. We absolutely need to do that, particularly for those low-income households. That is why we directed support mostly at low-income households, with more than £2,000 a household this year and £900 in additional support for low-income households this year. This is a twin-track approach, tackling inflation and lowering food prices, and also providing direct support.

[Eddie Hughes (Walsall North) (Con)]

Some 70% of our economy is services, so what is the Department doing to reduce barriers in that area and supercharge our global trade in services?

[Jessica Morden (Newport East) (Lab)]

May I draw the Minister’s attention to a Which? investigation into the lack of consistency in unit pricing by supermarkets? That makes it difficult for consumers to work out the real price of goods and, crucially, to choose between them. The Competition and Markets Authority is looking at this issue, but will the Government talk to the supermarkets too?

[Kevin Hollinrake]

The hon. Lady raises an important point. Which? does fantastic work. The CMA acts independently, without ministerial influence, and it is right that it does. However, I am sure it is keeping a close eye on that matter. As I said in a previous answer, the best way we can regulate prices in the UK is through strong competition. We have a very strong, competitive market in the supermarkets, with 14 chains in this country, and that is the best way to hold down prices. However, she raises an important point and I am sure the CMA will have listened to it.

[James Wild (North West Norfolk) (Con)]

UK Export Finance plays a vital role in supporting export opportunities, but a company in my constituency is having difficulties landing support to secure a contract based in one of our Trans-Pacific Partnership area countries. Will my right hon. Friend meet me to discuss this and how we can support that business?

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[Richard Foord (Tiverton and Honiton) (LD)]

T7. According to the website for the Department for Business and Trade, the Department is supposed to“shape our rules to ensure businesses thrive”. Edenvale Turf is a successful small and medium-sized enterprise in my part of Devon and it employs more than 20 people. Older Edenvale workers have grandfather rights as supervisors, but they have been told that they will no longer be eligible to act as turf-cutting supervisors without taking a National Vocational Qualification. Will the Minister meet me to discuss how the Government might prevent scores of older, experienced people from leaving the workforce by getting out of the way and ensuring that businesses thrive?

[Kevin Hollinrake]

The hon. Gentleman raises a very important point. Clearly, our regulation must work in favour of employment and helping people to get work and stay in work. I am very happy to meet him, possibly with one of my colleagues from the Department for Work and Pensions, to look at this matter.

[Stephen Kinnock (Aberavon) (Lab)]

I am honoured to chair the all-party group on steel, and, as such, I have invited the Secretary of State to meet us, as all four of her predecessors have agreed to do. I am very disappointed that she has declined to do so. I urge her to reconsider that position.

The US is investing $282 billion in green manufacturing. The Spanish and German Governments are each investing £1 billion in the decarbonisation of their steel industries. Labour would match that opportunity with a £3 billion clean steel fund, but the Government’s response to date has been woefully inadequate. When will the Secretary of State bring forward a steel transition strategy that matches up with what our competitors are doing and that matches the ambition of our professional and dedicated steelworkers?

[Judith Cummins (Bradford South) (Lab)]

Marshalls Bakery, a small business in my constituency, has just closed its doors after 43 years of trading. The owners told me that they were unable to withstand the combined pressures of covid, rising wheat and container charges and high energy costs. They feel let down and are angry at the lack of Government support for businesses such as theirs. Can the Minister tell me what further steps he is taking to ensure that other small businesses can survive in this challenging climate to provide the certainty from Government that they so desperately need?

[Kevin Hollinrake]

I am sorry to hear about the demise of that business in the hon. Lady’s constituency. Clearly, it has been a very tough time for businesses in recent years, with the covid crisis followed by the cost of living crisis. I am very happy to meet her to discuss what support we provide, which is to the tune of hundreds of billions of pounds. I am informed that there has been £1 billion of support to businesses over recent years. The schemes running at the moment include: the rates discount at £13.6 billion; and £23 billion has been put into helping businesses with energy costs. I am very happy to meet her to discuss that further.

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

UK semiconductor businesses have been crying out for the semiconductor strategy. I have asked a number of questions about this, and two weeks ago the Minister for Science, Research and Innovation told me it would be published in “a matter of days”. The Secretary of State loves a doughty champion; can she be a doughty champion for the semiconductor industry and speak to colleagues in the Department for Science, Innovation and Technology to get the strategy published?

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[Alison Thewliss (Glasgow Central) (SNP)]

Businesses and organisations in my constituency, and no doubt beyond, have ended up marooned on exceptionally high energy tariffs because they were forced to sign contracts at the height of the crisis. What conversations have Ministers had with Ofgem and with the energy companies to see what can be done to support those businesses, as those tariffs will be a drag on their future growth and development, and in some cases threaten their very survival?

[Kevin Hollinrake]

The hon. Lady makes an important point. Alongside the Minister for Energy Security and Net Zero, I met energy suppliers and Ofgem recently to discuss the matter. The problem is principally that energy prices have fallen, so businesses entering into new contracts today are getting more competitive rates, but the ones who entered contracts between July and December last year are facing difficulties. The energy suppliers have promised to help, but if the hon. Lady wants to talk to me about any particular instances, I am happy to help.

[Stephen Kinnock]

On a point of order, Mr Speaker. Following the exchange I just had with the Secretary of State, I want to underline the point that her office has declined and said that she would not be interested in meeting the all-party parliamentary group for steel and metal related industries. While she did come to visit the Port Talbot steelworks in my constituency, which of course I welcome, I was not invited to join her on that visit, whereas I understand the hon. Member for Scunthorpe (Holly Mumby-Croft) was invited to join her on the visit to the Scunthorpe steelworks. I just want to set the record straight on those points.