Oral Answers to Questions

Debate between Kevin Hollinrake and Rob Butler

Thursday 2nd May 2024 Commons Chamber

[Rob Butler (Aylesbury) (Con)]

10. What steps her Department is taking to reduce non-financial reporting requirements for small businesses.

[The Minister of State, Department for Business and Trade (Kevin Hollinrake)]

I thank my hon. Friend for his question and for his work as one of our trade envoys to the Kingdom of Morocco—I know he is a true diplomat and the soul of discretion. We recently announced that we were raising the monetary thresholds that determine company size, reducing burdens on smaller businesses and removing low-value and overlapping reporting requirements. Around 13,000 medium-sized companies will be reclassified as small companies, and 100,000 small companies will be reclassified as micro-companies. This will save small and medium-sized companies around £145 million a year.

[Rob Butler]

I visit many small businesses in my Aylesbury constituency, and I am always incredibly impressed by their spirit of entrepreneurship and the huge effort and hard work that they put in to succeed. They want to be able to devote as much of their skill and time as possible to finding new customers, selling more of their products and creating jobs, not to bureaucracy, admin and onerous regulation. As the true party of business, our Government have already made great progress supporting business, as the Minister has just outlined, but what more can his Department do to help the small and micro-firms that are the engine of our economy?

[Kevin Hollinrake]

My hon. Friend is a real champion of small business, and we meet often talk about these matters. This Government’s policies have pushed the UK to third place in the OECD rankings for start-ups—third out of 39 countries—and we have a suite of programmes to help small businesses. Most importantly, we offer access to finance, with our Start-Up Loans Company, growth guarantee scheme and equity investment schemes, the seed enterprise investment scheme and the enterprise investment scheme. We offer supportive advice through our Help to Grow management suite, including our newly launched “Help to Grow: Management Essentials” course, which is two hours’ free online training for small businesses. We are also removing barriers through non-financial reporting. As well as the monetary size thresholds, we are consulting on increasing the employee size thresholds from 250 employees for a medium-sized company to 500, which will save medium-sized companies a further £150 million a year.