Oral Answers to Questions

Kevin Hollinrake Excerpts

Thursday 25th January 2024 Commons Chamber

[Peter Aldous (Waveney) (Con)]

1. What steps she is taking with the Chancellor of the Exchequer to help increase access to finance for small and medium-sized enterprises.

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

Please may I take this opportunity, Mr Speaker, to pay tribute to Tony Lloyd? I worked with him very closely on the all-party groups on poverty and fair business banking. He was a thoroughly decent man. On behalf of myself and the Department, I pass on our deep condolences to his friends and family.

The Government work with the British Business Bank to improve access to finance for smaller businesses through targeted programmes, such as the £12.4 billion of finance that is backing more than 90,000 businesses across the UK and the £1 billion in start-up loans for 105,000 small businesses since 2012.

[Peter Aldous]

I am grateful to my hon. Friend for that reply. Many SMEs and new businesses are finding it increasingly difficult to open a bank account and to then obtain the support and services that used to be available in the rapidly diminishing branch network. What steps is he taking to address those challenges that SMEs are facing?

[Kevin Hollinrake]

My hon. Friend raises an important point. Leading banks and alternative lenders are committed to the SME finance charter to help small businesses and start-ups. We continue to work with the UK finance and banking industry to make sure that SMEs have the support from banking services that they require. Many leading challenger banks, such as Metro, Aldermore and Starling, provide additional application support. Banking hubs are also available for those without a bank on their high street to offer face-to-face support. Thirty have already opened, and 70 more are in the pipeline.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister for his response. There is a willingness to meet net zero commitments from businesses all over the United Kingdom of Great Britain and Northern Ireland, so would the Minister be prepared to introduce a scheme whereby small businesses can access funding to implement infrastructure changes in their businesses to help them achieve net zero, and will this be available to all parts of this great United Kingdom of Great Britain and Northern Ireland?

[Kevin Hollinrake]

The hon. Member raises a very important point. It is something that we look at all the time, and certainly we have had discussions on the matter. We already have programmes in place, including the £12.4 billion that we distribute through the British Business Bank that supports nations and regions funds. Some of that will certainly help businesses to access finance to decarbonise. We look at those measures all the time, and we are happy to work with him on future programmes that we might roll out.

[Mr Speaker]

I call the shadow Minister.

[Mr Tanmanjeet Singh Dhesi (Slough) (Lab)]

Small and medium-sized enterprises are a vital part of a thriving global economy, yet 49% of British SMEs say that they lack the time or resources to sell internationally. They are being hindered by complex regulation, insufficient access to funding and inadequate Government guidance. That is why Labour has launched the small business export taskforce with the Federation of Small Businesses to listen to business needs and address them head-on. What is the Minister doing to support hard-working SMEs in navigating the Government’s complex web of regulatory requirements and help unleash this untapped entrepreneurial potential?

[Kevin Hollinrake]

We agree with the hon. Gentleman on the ambition, but he is probably behind the game a little in terms of what we are actually doing, not least in the 73 free trade agreements that we have agreed, including the comprehensive and progressive agreement for trans-Pacific partnership that is coming down the track. I hope that he will be supportive of that agreement. He has probably also never heard of the export support service, the international trade advisers and the export champions, all of which help our SMEs export to other parts of the word.

[Mr Speaker]

I call George Freeman.

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[Christine Jardine (Edinburgh West) (LD)]

3. What assessment her Department has made of the implications for her policies of trends in the level of operating costs for small and medium-sized enterprises.

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

The Government have taken action to help SMEs deal with cost of living pressures, including freezing fuel duty, maintaining the 5p cut for a further year, introducing the energy bills discount scheme and reversing the national insurance rise. In the autumn statement, the Chancellor announced a substantial business rates package to support the UK’s small businesses worth £4.3 billion over the next five years.

[Christine Jardine]

Notwithstanding what the Minister says, I am still frequently being approached by small and medium-sized enterprises in Edinburgh West that are struggling to meet soaring energy costs, stave off inflation and deal with Brexit red tape. The number of Scottish SMEs in financial distress is up 10%, according to research, and those were formerly strong, stable and well-managed businesses. They have a huge impact on employment in tourism, which is one of our main industries. Will the Minister tell me what more the Department will do to reassure businesses in my constituency and elsewhere, and whether he will ask the Chancellor to do more in the forthcoming Budget to help them?

[Kevin Hollinrake]

The hon. Lady raises important points. Of course, the Chancellor can do nothing if the Scottish Government do not pass on our support to Scotland, which they have not done for business rates. I know that that is out of her hands, but it is a point she may want to raise with the Scottish Government. The average pub in Scotland is £15,000 worse off a year than its English counterpart because they have not passed through that rates support. The average restaurant or guest house is £30,000 worse off than its English counterpart, and closure rates in Scotland are 30% higher than in England.

[Mr Speaker]

I call the shadow Minister.

[Rushanara Ali (Bethnal Green and Bow) (Lab)]

Business closures now exceed new business openings, with 345,000 businesses across the UK closing in 2022—the highest since records began. This week, the Financial Times reported that more than 47,000 businesses are on the verge of collapse. Former Prime Minister Johnson used an expletive to describe his party’s commitment to business. His successor well and truly delivered on that commitment by crashing the economy. Is it not time the Government put businesses out of their misery by calling a general election, so that the country can get back to business?

[Kevin Hollinrake]

On this side of the House, we are for business because we are from business, and we understand the needs of businesses.

[Mr Tanmanjeet Singh Dhesi (Slough) (Lab)]

So are we!

[Kevin Hollinrake]

That is an interesting point that the hon. Gentleman makes from a sedentary position. The actual numbers of closures—although of course we are concerned about increases—are below pre-pandemic averages, but nevertheless we have stepped in to help by freezing fuel duty, maintaining the 5p cut and announcing £4.3 billion of business rates support, all to help our SMEs. Closure rates are lower in England than in Labour- run Wales.

[Joanna Cherry (Edinburgh South West) (SNP)]

4. If she will take steps to ensure that the proposed trade deal with India includes legal commitments on upholding human rights.

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[Jeff Smith (Manchester, Withington) (Lab)]

9. When she plans to bring forward legislative proposals to exonerate the remaining sub-postmasters with criminal convictions relating to the failure of the Post Office Horizon system.

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

On 10 January, we announced the Government’s intention to bring forward legislation within weeks to overturn the convictions of all those convicted in England or Wales on the basis of Post Office evidence during the Horizon scandal. I met the Justice Secretary only this week to make sure that those plans are on track, and we hope to bring forward that legislation as soon as possible.

[Jeff Smith]

Does the Minister have an estimate of how many convictions were made during the Horizon pilot? Will he confirm that those convictions will be included in the legislation, given that they were not made using Horizon data?

[Kevin Hollinrake]

We do not know that number yet, but we are very concerned about people who used the pilot version of Horizon and were potentially subject to similar abuses. We do believe they fall under similar compensation schemes, and there is no reason why they would not be covered by the legislation to overturn convictions.

[Sir David Davis (Haltemprice and Howden) (Con)]

For the legislation to work, postmasters have to come forward. When I asked one of my constituents this weekend why they had not come to me sooner, they said it was because they had signed a non-disclosure agreement, but also because they had had to sign the Official Secrets Act. I thought that was so bonkers that I did not believe it, until I read page 26 of Nick Wallis’s book, which says that postmasters do have to sign the Official Secrets Act. If that mad policy is still going on, will the Minister bring it to an end? Will he tell postmasters all over the country that they are completely at liberty to talk to their MPs about any aspect of the Post Office?

[Kevin Hollinrake]

I thank my right hon. Friend for all the work he has done in this area. I understand that the requirement to sign the Official Secrets Act relates to the confidentiality of mail; it does not relate to the confidentiality of issues regarding mistreatment by Post Office Ltd. My right hon. Friend is absolutely right to raise that point, and I will certainly raise it with Post Office Ltd, but I can confirm that that would not prevent somebody from speaking out, including to their Member of Parliament.

[Mr Speaker]

I call the shadow Secretary of State.

[Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)]

The Minister knows that we are willing to work with the Government on a way to exonerate the sub-postmasters and get them compensation as quickly as possible. The proposals will have to be imperfect, but they represent a clear option for resolving this terrible issue. As a way to ensure safeguards against any potential future misuse of precedent, could cross-party agreement be established as an essential provision for the exercise of powers of this kind?

[Kevin Hollinrake]

I thank the hon. Gentleman for the constructive way he has engaged with us on this issue. I know that the Justice Secretary spoke to the Leader of the Opposition this week on this very matter, and we are very keen to engage with the hon. Gentleman too. He is right to say the solution is imperfect. We believe it is the least worst option, but of course we will engage with him and make sure that he feels the legislation is in the right place.

[Jonathan Reynolds]

I am grateful to the Minister for that answer, and I hope that exchange gives some reassurance to all colleagues in the House. Will he confirm that all prosecutions that arise from the Horizon pilot scheme will now also be included in the exonerations, given that, although people were technically prosecuted without official Horizon data, it is very much the same issue?

[Kevin Hollinrake]

Again, the hon. Gentleman raises a very important point, similar to one made earlier. The circumstances were similar, so we feel there is no reason to exclude people who have been convicted in similar circumstances. Again, I am happy to work with him on that issue.

[Daniel Zeichner (Cambridge) (Lab)]

10. What recent assessment she has made of the principal barriers to trade for importers.

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[Mary Robinson (Cheadle) (Con)]

12. What steps her Department is taking to encourage sub-postmasters who were affected by the failure of the Post Office Horizon system to claim compensation.

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

Over £153 million has been paid to 2,700 victims. We encourage anyone impacted to use the three compensation schemes available. We have already published the details of the up-front £75,000 fixed-sum offer for group litigation order postmasters on the gov.uk website, created a new claim form, and written to all eligible members of the GLO scheme to explain the offer further.

[Jo Gideon]

The Post Office Horizon scandal has shocked the nation. My constituent Kym Ledgar received a settlement under the historical shortfall scheme, which did not take into account the enormous stress, the extra work in trying to balance the books, the damage to her reputation and the price she and her family paid in lost income, having had to make up the shortfall herself. Does the Minister agree that we need to acknowledge the wider cost of the Post Office’s appalling behaviour? Will he meet me to discuss how those who accepted an offer under the historical shortfall scheme may now receive compensation that truly reflects the impact that the Post Office’s conduct over two decades has had on their lives?

[Kevin Hollinrake]

I apologise on behalf of the Government to Kym Ledgar for what she has been through. It is absolutely our intention that everybody gets full and fair compensation, and that is not only for financial losses but for non-pecuniary losses. We have taken a number of steps to ensure that the compensation is fair and delivered swiftly, including by establishing the independent advisory board, on which the noble Lord Arbuthnot sits. We will continue to work with the board and consider what further action is required, but yes, I would of course be happy to meet my hon. Friend to discuss these matters further.

[Mary Robinson]

The Post Office Horizon scandal has made clear to us all what happens when whistleblowers are ignored or silenced. Does my hon. Friend agree that as well as ensuring that victims are properly compensated, we need better legislation to protect whistleblowers? As the Government’s whistleblowing framework review draws to a close, will he meet me to discuss how the outcome of the review can be used to support the Whistleblowing Bill that I presented to the House yesterday?

[Kevin Hollinrake]

I thank my hon. Friend for all her work. At one point we were co-chairs of the all-party group for whistleblowing, and she does a tremendous job in raising this issue time and again in the House. We are currently reviewing the effectiveness of the whistleblowing framework in meeting its intended objectives. Every scandal that I have talked about in this House over the years, from the Back Benches and the Front Benches, has come to light because of whistleblowers, who are hugely important. We are reviewing that frame- work. The research for the review is near completion, the Government will set out the next steps in due course, and yes, of course I would be happy to meet my hon. Friend to discuss that.

[Kerry McCarthy (Bristol East) (Lab)]

I, too, have a constituent who, although she was thankfully not prosecuted, was forced over a period of more than a decade to pay back thousands of pounds every year, and it amounts to a six-figure sum. As the hon. Member for Stoke-on-Trent Central (Jo Gideon) said, this is not just about that pecuniary loss; this is about the impact on my constituent’s family—I will not go into her personal details, but they took a real hit and I wish she had come forward to me sooner. I met her a couple of weeks ago and it really has wrecked her life. She has not yet had any compensation through the shortfall scheme, so I urge the Minister to ensure that such people are properly compensated.

[Kevin Hollinrake]

The hon. Lady is absolutely right to raise that point. Yes, the compensation scheme is there to compensate and provide redress for financial loss, but also, quite rightly, for personal loss, loss of reputation, impact on health—those kinds of matters. There are two routes open to compensation: the £75,000 fixed-sum award, which is pretty much an immediate payment, or someone can go for a full assessment of losses, which takes into account all those matters. Interim payments are also available. We have paid out £153 million in total across the schemes. I am happy to help the hon. Lady with that specific case, and we are looking to try to expedite the payment of full and fair compensation to all individuals. I am working on a daily basis to try to do that.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

13. What steps her Department is taking to help tackle late payments to small and medium-sized businesses.

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

The Government are committed to tackling late payments. That is why we launched the prompt payment and cash flow review, which was published alongside the autumn statement. The review includes amending payment performance reporting requirements for large businesses, and providing the Small Business Commissioner with more powers to investigate late payments.

[Debbie Abrahams]

Small businesses are the backbone of our economy, but unfortunately late payments continue to blight the ability of small businesses to trade, with an average of £684 million a year being lost. Unfortunately, that is on the increase, with a 7% increase in 2023. I appreciate what the Minister said about another review— I think we had one a few years ago—but what specific actions are the Government taking to address this appalling abuse of power, which is contributing to 50,000 small businesses going under a year?

[Kevin Hollinrake]

The hon. Lady is right to raise this issue, and earlier I set out specific actions such as giving the Small Business Commissioner more powers, and producing league tables. We work closely with the Good Business Pays campaign, which produces league tables on this issue, and naming and shaming the people responsible is important. The Government are leading the way, and from April 2024 firms bidding for Government contracts worth more than £5 million will have to demonstrate that they pay their invoices within an average of 55 days, tightening to 45 days in April 2025 and to 30 days in the coming years.

[Stephen Kinnock (Aberavon) (Lab)]

14. Whether she has had recent discussions with the Chancellor of the Exchequer on taking fiscal steps to help support the steel industry.

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

15. What steps she is taking to help support the growth of co-operatives and social enterprises.

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

This week, I spoke to a conference attended by building societies about how we can increase presence on the high street to help with access to cash and finance facilities. The Government provide extensive business support to all businesses, including social enterprises and co-operatives. The British Business Bank’s recovery loan scheme and start-up loans improve access to finance to help those kinds of businesses to invest and grow.

[Rachael Maskell]

Co-operatives and social enterprise businesses provide a fairer way of doing business, involve members in greater business decisions and provide economic growth for local areas. However, they are being held back by financial and regulatory constraints. Will the Government match the Labour party’s and the Co-operative party’s ambition of committing to address those challenges and doubling the size of the co-operatives sector?

[Kevin Hollinrake]

Personally, I am a big fan of co-operative movements and the regional mutual bank system in Germany, which I have spoken about many times in this place. Of course, the Government supported the Co-operatives, Mutuals and Friendly Societies Act 2023, which helps to maintain the status of co-operatives. Social enterprises and co-operatives can also access support via the business support helpline as well as help through our websites and our network of local growth hubs.

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[Duncan Baker (North Norfolk) (Con)]

T2. With many banks closing on high streets, the post office is picking up so much slack, but in rural areas the limits placed on the amount of cash that can be paid in at the post office is having a real impact on businesses. For instance, pubs have a lot of cash but cannot pay it in because of the limits. Can the Minister review that and ensure that the post office can take far greater volumes of cash from rural businesses?

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

I thank the hon. Gentleman for his work on this matter, which he and I have discussed on many occasions. The limits are there to try to prevent money laundering, but it is important that the checks are proportionate. I have raised their impact on a number of occasions with the Financial Conduct Authority and UK Finance. There is more transparency now and they are working more effectively. I know that the wonderful Ingham’s fish and chip shop in Filey now experiences fewer problems when it pays in money at its local post office. There is a great opportunity not just for Inghams fish and chip shop but for the post office banking framework to make that relationship more lucrative.

[Mr Speaker]

I call the shadow Minister.

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

Postal workers are the bedrock of our communities, but they are being forced to work at unsustainable levels—something that, sadly, has not been recognised in Ofcom’s report on the future of universal service obligations. The input of postal workers is critical to a successful Royal Mail, so please can we have confirmation that their views will be considered in any future decisions?

[Kevin Hollinrake]

That would make perfect sense. We read the Ofcom report into the review of universal service obligations with interest. Our clear position is that we will retain a six-day service for our citizens and businesses, but those views will be taken into account.

[Theresa Villiers (Chipping Barnet) (Con)]

T8. The Secretary of State has often stated her support for post-Brexit regulatory reform and divergence, and did so again in answer to an earlier question. Is she in a position to deny reports in The Daily Telegraph today that the Government have pledged to introduce a requirement that all future regulatory change will be screened to ensure that extra barriers in the Irish sea are not created? That could be a significant impediment to divergence from EU laws.

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[Richard Thomson (Gordon) (SNP)]

Will the Secretary of State please confirm that this Government have no plans to alter the legislation on the marketing of infant formula and other breastmilk substitutes?

[Kevin Hollinrake]

The hon. Gentleman raises an interesting point. I am very happy to write to him about it.

[Scott Benton (Blackpool South) (Ind)]

Royal Mail customers will have welcomed the Minister’s reassurance this week about ruling out a reduction to the current six day a week service. However, many customers already feel short changed by what is often an inadequate service in their area. Does the Minister agree that any proposed changes must protect the small businesses whose business models rely on the six-day service, and customers’ rights?

[Kevin Hollinrake]

The hon. Gentleman is right to raise this issue. The service has not been satisfactory, and Royal Mail has been fined £5.6 million by Ofcom as a result. It has employed 3,000 more postal workers to address those problems, and we are seeing some improvement, but he is right to raise the point about our six-day service being vital to businesses, particularly those in the magazine and greeting card industries.

[Peter Dowd (Bootle) (Lab)]

T3. What assessment has the Minister made of the results of private sector trials in relation to the introduction of a four-day week? Will he meet me in due course to discuss the results of those trials?

[Kevin Hollinrake]

I thank the hon. Gentleman for that question. It is clearly up to businesses to decide if they want to trial a four-day week. We have made no assessment of any results. It is our belief that we should not run a Stalinist economy, where we tell private sector businesses how to operate their workforce and on what days of the week—he may differ on that particular perspective—but we have introduced important reforms that help businesses work more flexibly, including the flexible working changes that were introduced recently.

[Dame Caroline Dinenage (Gosport) (Con)]

The Gosport branch of Asda is the first in the UK to ballot for strike action. Employees cite issues including low staffing levels, health and safety, and delayed equal pay claims. Considering Asda’s importance to the UK food chain and employment across the country, what powers does the Minister have to ensure that both workers and consumers are protected?

[Kevin Hollinrake]

My hon. Friend raises an very interesting point. We have looked at this particular situation with interest and will continue to monitor it. Clearly, Asda is a private company and it is up to it to decide how best to deploy its workforce, but I am very happy to continue our conversation and I appreciate her engagement on this issue.

[Christine Jardine (Edinburgh West) (LD)]

T4. A lot of concern has already been expressed in the House this week about the steel industry. With the expansion of renewables across Scotland and the rest of the UK, there will be demand for the vital materials required to build more wind turbines, which may now need to be sourced from abroad. Will the Secretary of State tell us what steps will be taken to try to provide the vital materials for an important industry?

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[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

T5. Will the Post Office Minister meet me and my constituent, who was a postmistress? She lost £250,000 in 2000. It is an unusual case, otherwise I would write to him, but it does need him to meet her, so I would be grateful if he would do that.

[Kevin Hollinrake]

Yes, I would be very happy to meet. There are three compensation schemes and it depends on which one she falls into. If it is the group litigation order, an immediate award of £75,000 can be made; if it is an overturned conviction, the amount is £600,000. I am sure there will be one scheme that the hon. Lady’s constituent will fit into. I am very happy to meet her to help ensure she finds the right one.

[Cherilyn Mackrory (Truro and Falmouth) (Con)]

Mining is coming back to Cornwall. This week, as chair of the all-party parliamentary group for critical minerals, I met industry leaders from around the country at a roundtable here in this place to talk about the challenges the critical minerals industry is facing. Will the Minister agree to come to a meeting to discuss the challenges facing the industry? Demand is going up exponentially, but it is a high risk industry and it needs her help.

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[Jo Gideon (Stoke-on-Trent Central) (Con)]

I am grateful to the Minister for working with me on the issue of button battery safety, and grateful for the ongoing commitment of the five working groups that were set up in 2022 following the tragic death of one of my constituents, Harper-Lee Fanthorpe, and the campaign for Harper-Lee’s law. Will the Minister meet me to discuss progress, and, in particular, how the guidelines drawn up by the Office for Product Safety and Standards can be made compulsory so that more deaths and injuries from button battery ingestion can be prevented?

[Kevin Hollinrake]

My hon. Friend has done a fantastic job with the campaign, and has made huge progress towards ensuring that best practice is followed by suppliers. Of course I shall be happy to meet her to see what more can be done.

[Kenny MacAskill (East Lothian) (Alba)]

T7. Ferguson Marine, the last remaining shipyard on the lower Clyde, is threatened by the way in which its current work is configured. It badly requires an order from CalMac for seven small island ferries. The issue of procurement is one for the Scottish Government and their agencies, but will the Minister ensure that no impediment, no obstacle and no rules that are under her control will prevent the order from being given directly by the Scottish Government to Ferguson Marine if they so wish?