Family Businesses: Contribution to Local Communities

Lisa Cameron Excerpts
Tuesday 20th December 2022

(1 year, 3 months ago)

Westminster Hall
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John Stevenson Portrait John Stevenson (Carlisle) (Con)
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I beg to move,

That this House has considered the contribution of family businesses to local communities in the UK.

It is a pleasure to serve under your chairmanship, Mr Robertson. I am grateful to have the opportunity to debate the importance of family businesses and their contribution to our national economy, our local economy and our communities up and down the country. I appreciate that this might not be the best week for this debate, given that we are approaching Christmas, but this is a really important time of the year for many businesses, particularly in the hospitality industry, and an important time of the year for family businesses to succeed.

I want to put on the record my thanks to the Institute for Family Business for its support and the research that it has carried out into the success of family businesses and also the challenges that many of them face. The institute is the secretariat to the all-party parliamentary group for family business, which I chair, and it has been very supportive for all the time that I have been chairing that APPG.

I want to start the debate with a simple question: what exactly is a family business? There are many different definitions and people will have their own interpretations. The Institute for Family Business set out its own definition in its most recent report, but for me it is quite simply the involvement of family in a business. This can be a sole practitioner—an individual who has set up their own business and is effectively a one-man band. It could be a husband and wife team. The wider family and children could be involved. It could involve other members of the family such as cousins, and of course it could involve different generations. But it is also about the level of control.

When we look at a corporation, we look at the shareholding of that company—how many shares are owned by the family and how many are external. We look at who effectively controls that business. A family business might not always be run by members of the family. It might have independent management or a mixture of family members and outsiders. Each can be equally successful. They all have their own challenges, but that does not detract from the fact that they can be just as successful as a purely family-run business, or as a mixture or with outside control.

The real challenges come when there is third or fourth generation involvement in a family business. They all present different concerns. There are intergenerational matters, and shareholding or ownership of a business can be widely spread among many members of the same family.

What about the sector that the business is involved in? It is estimated that there are around 5 million businesses in the United Kingdom, all of varying sizes. Family businesses make up 85% of that 5 million, so effectively our economy is dominated by such businesses both at the national and local level. I will come specifically to the local level in due course.

The size of the businesses varies enormously. Most are microbusinesses—small one-man bands or small family units. Equally, there are some enormous businesses that have grown from small start-ups. Warburtons is a good example. Historically we could look at Mr Barclay or Sainsbury’s as examples of small businesses many years ago that became huge conglomerates and very large and successful businesses.

Lisa Cameron Portrait Dr Lisa Cameron (East Kilbride, Strathaven and Lesmahagow) (SNP)
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I thank the hon. Gentleman for securing this extremely important debate, because family businesses are the bedrock of our local economies. In my own constituency, Glencairn Crystal started as a local family business. It won the Queen’s Award and went on to develop the iconic Glencairn Crystal whisky glass, which is now internationally renowned. Does he agree that, with the correct package of support, financial innovation, contribution and development from Government, family businesses can become iconic and international successes?

John Stevenson Portrait John Stevenson
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The hon. Lady is right. It is always lovely to hear Members promoting family businesses and demonstrating their success. She also highlights an issue that I will come to about how we can ensure they get the support that they need to be successful.

I have talked about family businesses being small or large, but we must also remember that there are some huge international businesses, including Mars and McCain. An interesting general observation is that many large, international family businesses are invariably owned from North America. That indicates that family businesses are not just part of our economy but part of international economies across the world.

Family businesses are involved in all sectors. The obvious one is transport, with large transport businesses up and down the country displaying their logos. They are also in retail and manufacturing. One particular area that features a lot of family businesses is the food and drink sector. That is a very popular sector in which to set up and grow a family business. That has a knock-on impact on the hospitality industry, which has a large number of small family businesses.

--- Later in debate ---
Kevin Foster Portrait Kevin Foster (Torbay) (Con)
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It is a pleasure to serve under your chairmanship, Mr Robertson, and to follow my good friend, the hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone) and hear his experiences of business. I congratulate my hon. Friend the Member for Carlisle (John Stevenson) on securing the debate, which is a timely chance to highlight the role that family businesses play in Torbay’s economy.

As my hon. Friend the Member for Carlisle reflected, family businesses make a major contribution to the UK economy overall. Oxford Economics estimated that there were 4.8 million family businesses in the UK in 2020, making up 85.9% of all private sector businesses. Those businesses employed 13.9 million workers, or 51.5% of all private sector employment, and contributed £575 billion to the UK economy. These are big numbers overall, despite most family businesses actually being small firms—something like three quarters of all family businesses in 2020 were sole traders with no employees. A further 21% have between one and nine employees, although I understand that the estimates were based partly on data collected the previous year.

It is interesting to note that those numbers represented a decrease. The number of family businesses decreased in 2020 from 5.2 million in 2019, when they employed 14.2 million people and contributed £637 billion to the economy. If the Treasury was here, it would be interested in the fact that such businesses paid £205 billion in tax receipts. Some of that may reflect the impact of the pandemic, not least given that the typical family business many of us think of is a shop or a guest house, both of which were affected by that period.

Many family businesses are not just sources of economic activity, but mainstays of the local community. A 2021 survey of family businesses conducted by PwC found that the vast majority of UK family businesses also continue to engage in some form of social responsibility activity. Some 74% of family businesses surveyed contributed to their local community, and 47% participated in traditional philanthropy or grant-based giving as a company.

Lisa Cameron Portrait Dr Cameron
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The hon. Gentleman is making excellent points. Given that family businesses are such a focal component of our communities, does he agree they have a key role in reducing the disability employment gap, and are often the businesses that promote disability inclusion in our communities?

Kevin Foster Portrait Kevin Foster
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I completely agree. The type of support a family can provide to someone with disabilities—even in their own family, for example, by extending the care and support offered to their loved one and supporting them in the workplace—can be vital. Many families have rightly shifted their expectations of what a family member with disabilities will be able to do. To be honest, past attitudes might have been, “Could this person work?” or “Perhaps they shouldn’t, perhaps they won’t ever work.” Thankfully, there has now been a big change in many businesses. The hon. Member is right that family businesses can help to lead that charge.

The economic and social impact of family businesses can be seen clearly in Torbay, and it is important to reflect on this positive aspect. I will start with Rew Hotels. The Rew Hotel Group was founded in 1970 by Mrs Sylvia Rew, and is still family managed. Positioned right on Torquay’s seafront are the two hotels it runs: Livermead House and Livermead Cliff. The family are not just quiet owners but part of the frontline delivery of services to customers. It is a good example of a family business where the family has been able to develop two distinct offers while making the business a family in itself, with several senior staff members having started waiting tables or behind the bar, and then been given opportunities to develop their career within the hotel and the business

Susan’s Flower Shop has been trading at the heart of Paignton, Devon for over 50 years; the business itself has become a family, given that it has been trading for such a lengthy period. Brian and Susan, who are the leading figures, are involved in many aspects of local community work and supporting the bay as a whole.

There is also Conroy Couch, which is one of the oldest established businesses in Torquay and one of the oldest jewellers in the UK. It was first opened in 1863 by Mr Conroy Couch, and such was the quality of its initial fitting that the shop front has altered very little since, with the height of the entry doors serving as a reminder of a time when men commonly wore top hats and would be wearing them when they attempted to come through the door. Towards the end of the last century, the shop was taken over by the Rowe family, who are well-known and respected jewellers in Torquay. Today, David and his daughter Michelle still hold the values that the original founder of the business held dear: it is an active part of supporting local Rotary appeals, and works to ensure that Torquay high street has an annual Christmas lights display.

A larger example of a family business is Beverley Holidays, which operates three holiday parks in Torbay. It has been a family-run business for over 60 years, and during that period its owners have seen some dramatic changes in Torbay’s tourism sector. A caravan holiday might conjure up images from the past of putting coins in meters and sleeping on a sofa, yet many caravans in those parks offer standards equivalent to executive hotel suites, meaning that as a family business Beverley Holidays can compete with the large national chains on both price and quality.

Family business is not just about retail and tourism—we have heard some examples today. In that context, one company that particularly jumps to my mind is Casting Support Systems, or CSS as it is commonly known. It is a family business that was established by Ted Head, and produces a range of products for the distribution, aerospace and automotive industries. Earlier this year, it won the Queen’s award for enterprise for its export achievements and relocated to a brand new, purpose-built factory in Paignton. To give the scale of the impact of that family business, between 2018 and 2021 its exports rose from £267,000 to £1.7 million.

Another sector that can be overlooked is one that is often seen in our local communities, and one to which family businesses are integral: travelling fairs. The name Anderton and Rowlands is synonymous with funfairs and bank holidays in Devon and Cornwall. That business started back in 1854, when Albert Haslam, a variety artist, set up on his own, giving magic exhibitions. His tutor was one Professor Anderson, and upon his death, Albert assumed the name of Anderton. In 1903, the show first travelled under the name of Anderton and Rowlands, the name that has been in existence since. Since the 1950s, the firm has continued to expand, and the name Anderton and Rowlands is now in its fifth generation. It is currently owned by the DeVey family. George DeVey—who was born in a showman’s wagon travelling to a maternity hospital back in 1937—Simon DeVey and Simon DeVey Jr are key parts of it, and it is now the biggest fairground operator travelling in Devon and Cornwall.

Finally, I should mention Bygones in Torquay. Back in the 1980s, Ken Cuming’s obsession with railwayana was starting to outgrow his house; I understand that the final straw for his wife Patricia came in 1986, when he purchased a 27-tonne steam railway engine from Falmouth docks. As fortune would have it, the couple spotted that an old cinema had become available in St Marychurch, and bravely took the plunge of turning their hobby into a family business. Over the next year or so, with the help of an excellent mason and carpenter, and many friends, the family recreated a Victorian street scene, and on 23 May 1987 Bygones was opened to the public by the then mayor of Torbay. Sadly, Ken Cuming passed away in June 2017, but his wife Patricia, son Richard and daughter Amanda are still working daily in Bygones, which is a popular attraction that also supports veterans.

I could be here all day listing great family businesses in Torbay, and it has been good to recognise some of them in my speech. I am sure that many Members will be thinking of businesses in their own constituencies; we have already heard about some. However, family businesses are not immune to changes in our economy, especially on the high street. Sadly, it has been a long time since Rossiters department store in Paignton was bustling in the week before Christmas. Rossiters was part of Paignton for 150 years. Father Christmas often arrived there in dramatic style—one year on a turntable ladder, and once in the late 1980s even by parachute jump on to Paignton Green—but changing shopping trends and competition from online and out-of-town retail sadly led to it closing its doors in 2009. Even yesterday, we read that the future of a 106-year-old family business, Shaws the Drapers, which has stores across Devon, including one in Torquay, is under threat. Managers of the family-run company have admitted that it must change to survive, and, sadly, signs outside its shops state that all remaining stock is now on sale.

There are many positives to a strong family business sector, but what might inhibit its future growth? Family businesses are often based in and synonymous with one area. That means that the decisions of local councils can either boost or severely dent their prospects. Take, for example, the recent decisions of the coalition of Lib Dem and independent councillors that runs Torbay Council. Earlier this year, the coalition decided to close Torbay Road in Paignton to traffic as part of a pedestrianisation pilot. Torbay Road is a busy shopping street, and many businesses along that stretch of road and nearby are family owned. They have reported that trade has fallen off dramatically over the last three months. At a meeting last week, Conservative councillors requested that the coalition review the impact, but a review was decided not to be urgent enough. Similarly, the coalition’s decision to sign off a request from a developer to close Brixham Road for three months is unlikely to help many family businesses across our bay.

We must return to a familiar subject to me: business rates. Take Susan’s Flower Shop, which, as I mentioned earlier, is a family business that has been trading for just over 50 years. There is not a strong incentive to expand or maintain premises where business rates are concerned. Its shops are below the £12,000 rateable value, so no rates would be payable if it traded out of only one shop. As soon as a small family business has a second shop, rates become payable on both. That is a disincentive for family-run small businesses such as those in the floristry trade. Many shop owners would like to open a second shop for a family member to run when they are old enough. There is a reason why we see businesses called “Jacksons” or “Fredericksons” in our areas; that is a nod not just to a past surname, but to a time when a father might have set his son up in business after having taught him—Jack’s son—the trade. I am sure that many more empty shops would be filled by family businesses if that tax disincentive were removed.

I hope that the Minister will set out his thoughts on the following. First, how will the Government ensure that local councils pay attention to the needs of local family businesses when making decisions? Secondly, what consideration will be given to the position of family-run businesses in the long-awaited business rates review? Thirdly, not all members of a family have the skillsets required to grow a business, so they may need to recruit from outside the family for the first time; how are the Government supporting them to do so? Finally, what is the vision for family-owned businesses, from the Minister’s perspective? How does he see them being encouraged and nurtured by this Government? Knowing his own background and passion in the area, I expect that he will be particularly keen on that.

Family businesses are not just part of the economic output of our country, but an integral part of the social fabric. Without them, we would all be poorer, not only in the sense of the jobs and economic activity they create, but in the sense of the social responsibility that many show simply by wanting their businesses to be positive parts of the communities they are proud to call home.

Entrepreneurs from Ethnic Minority Backgrounds

Lisa Cameron Excerpts
Tuesday 20th December 2022

(1 year, 3 months ago)

Westminster Hall
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Stephen Timms Portrait Sir Stephen Timms (East Ham) (Lab)
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I beg to move,

That this House has considered support for entrepreneurs from ethnic minority backgrounds.

I am delighted to serve under your chairmanship, Mr Hosie. I am grateful to Mr Speaker for granting this debate, and I am very pleased to see the Minister in her place.

I represent in Parliament the eastern half of the London Borough of Newham, which is probably the most ethnically diverse community on the planet. Last year’s census showed that just 45% of residents were born in the UK, and that 52% identify as Asian, compared with 9% nationally, and another 14% identify as black. Some 25% identify as white, compared with 82% nationally, so ethnic minority entrepreneurship is very important for the prosperity of the community that I represent. I regret the closure of the Department for Work and Pensions support programme for self-employment, with no sign of a replacement as yet. That programme gave helpful support to a significant number of my constituents to start up in business for themselves.

Minority-led businesses have made a lot of progress. Minority Supplier Development UK, a not-for-profit membership group that champions diversity and inclusion in public and private sector supply chains, highlighted in a report last year called “Minority Businesses Matter” that of the UK’s 23 unicorns—start-ups valued at $1 billion or more—eight had ethnic minority founders, including Deliveroo. That gives a sense of the huge potential in this area, which we need to realise much more. In May, the London Chamber of Commerce and Industry published the report “Ethnic Diversity in Business”. I commend the work of Esenam Agubretu and her colleagues. That report identifies the barriers that minority-led businesses face.

In 2021, about 14% of the UK population was from an ethnic minority background, but ethnic minority-led businesses constituted just 5% of small and medium-sized enterprises in 2020, and those businesses also tend to be in lower-paying sectors. We need to be doing much better than that. The economic contribution of ethnic minority-led businesses is large, but the potential is larger still. Baroness McGregor-Smith’s 2017 review, “Race in the workplace”, concluded that

“If BME talent is fully utilised, the economy could receive a £24 billion boost.”

We need to realise that opportunity. The Social Market Foundation has found that ethnic minority-led businesses are often more innovative, with a lot to contribute to levelling up the economy, and that the economy is weaker because those businesses lack support.

I want to highlight two main points arising from the London Chamber of Commerce and Industry report: the need to address the barriers that ethnic minority businesses face in accessing finance, and the need for better data on how those businesses are getting on. The key barrier, and the focus of that report, is problems accessing finance. Black entrepreneurs in particular report bad experiences with banks, and Asian entrepreneurs struggle to access funding outside their own communities. Those who do apply for funding are far less likely to receive it. The London Chamber of Commerce and Industry quotes Ismail Oshodi describing his experience:

“we had different people dealing with us and I had to repeat myself on several occasions, even with all of that, we were unable to get the amount we needed. We weren’t given a clear reason why, we was just told we did not meet their criteria.”

The LCCI says that 44% of black African business owners and 39% of black Caribbean business owners fear prejudice from financial providers, compared with just 4% of white owners. Let us be frank: racism is part of the problem. It is not that the banks do not recognise the problem; they do, and they are trying to do something about it. UK Finance published a report in July, “Supporting Ethnic Minority Entrepreneurship in the UK”, which profiled numerous initiatives. HSBC sponsored last year’s Black Business Week and Black Business Show. Santander works with a network of women of colour in business and supports a black inclusion programme. NatWest has a racial equality taskforce and an ethnicity advisory council. Barclays has a black founders accelerator.

The initiatives that I have seen most of are those supported by Lloyds bank. It has a black business advisory committee, chaired by Claudine Reid MBE, whom I first met when I was a Minister in the Department of Trade and Industry 20 years ago. I had embarked on a tour of social enterprises and found myself at PJ’s in Croydon, set up and run by Claudine and her husband. I also know the work Lloyds does with the Black Business Network, founded and chaired by Shari Leigh, which was highlighted to me by my former constituent Shi Dolor, whom I knew when she was a teenager and whose Noir Squared branding business has worked with the network.

In September, the network published the second of three annual reports called “Black. British. In Business …and Proud!” As a Lloyds executive recognises in her foreword, it makes for “uncomfortable reading”. The report refers to a

“breakdown in trust of formal institutions”,

and reports that 67% of black business owners have been negatively discriminated against in their past entrepreneurial efforts, that 84% of business owners see racism and society’s attitude to black entrepreneurs as a barrier to their business, and that black business owners turn to their friends, black business community groups or social media groups rather than banks for advice and support.

Lisa Cameron Portrait Dr Lisa Cameron (East Kilbride, Strathaven and Lesmahagow) (SNP)
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I thank the right hon. Gentleman for bringing this vital debate to the House. Does he agree that where there is intersectionality between ethnic minority groups and disability or gender, the barriers faced by people can be multiplied, and that banks and the Government should also take that into account?

Stephen Timms Portrait Sir Stephen Timms
- Hansard - - - Excerpts

I very much agree with the hon. Member. That point is made in the London Chamber of Commerce and Industry report, and she is right to highlight it.

Over half of black business owners say that they have seen banks taking action to deal with the problem, but only 12% think that that action taken is significant. Minority-led businesses also account for very little venture capital investment, less than 2% of which went to all-ethnic founder teams in 2019, according to the London Chamber of Commerce and Industry. Black African firms are four times more likely than white firms to be refused a loan, according to the British Business Bank. Mainstream services do not seem to be working for ethnic minorities. Ethnic minority groups have less wealth than their white counterparts, and there is a strong correlation between that and business success. They have fewer savings, so they are more reliant on external financial support.

Given that, it is no surprise that minority-led businesses do less well. According to London Chamber of Commerce and Industry research, 38% of Asian and other minority business owners and 28% of black business owners reported making no profit, compared with 16% of white business owners. Thirty-nine per cent. of black entrepreneurs and nearly half of Asian and other ethnic minority entrepreneurs stopped working on their business idea because of “difficulties getting finance”, compared with a much smaller proportion—just a quarter—of white entrepreneurs.

We need to be doing better than this, for the sake of not just business owners but the wider prosperity of our society. I welcome the Labour party review of start-up funding, led by Lord O’Neill, who was a Treasury Minister in the coalition Government. The review will consider how to ensure that ethnic minority entrepreneurs can access the finance, support and networks they need. Newham-based Shpresa is a community organisation supporting self-help among London’s Albanian community. It was founded and led by the remarkable Luljeta Nuzi, a social entrepreneur I first met when she came to the UK seeking asylum from Kosovo. She went on to graduate from the School for Social Entrepreneurs, and when today’s debate was announced, she drew my attention to the school’s match trading initiative, which provides enterprise grant finance, supported by Lloyds bank; the aim is that racially minoritised social enterprises should be early adopters.

When the Minister responds, can she give us the Government’s assessment of the lending practices of financial institutions to ethnic minority businesses, and say whether she sees real progress being made? It is welcome that between 2012 and 2018, over 11,000 ethnic minority entrepreneurs received Government-backed start-up loans. The additional action that is needed is largely for the financial services industry, but there is one area where Government action is particularly needed: public procurement. A big section of the report by the London Chamber of Commerce and Industry is devoted to this area, and it calls for a Government taskforce to work on increasing public procurement from ethnic minority businesses.

The LCCI wants the Government to move beyond merely “best endeavours” to introducing, for example, minimum target percentages for procurement from minority-owned businesses, in order to simplify procurement procedures and increase public purchasing from micro-businesses. It also wants tenders to be scored, in bid assessments, on supply chain diversity, and the Government to establish prestigious awards to highlight the achievements of minority-owned businesses.

In the LCCI’s report, a quote caught my eye from Demi Ariyo, founder of a funding platform:

“It became clear to me that there was a problem to be solved upon witnessing my church’s experience and hearing the first-hand experience of other minority ethnic entrepreneurs who had tried to seek funding.”

As the chair of the all-party parliamentary group on faith and society, I would like there to be greater support for entrepreneurship among people who are coming together in faith groups. Britain’s history is replete with great businesses that have their roots in religious faith. Let us have more of them, and newer ones.

My second point is about the lack of reliable data on ethnic diversity in business, which the report describes as “a recurring theme”. Here again, we need action by Government and by business. Companies House does not record the ethnicity of company directors. There is no legal requirement for businesses to publish their ethnicity pay gap, although they are rightly obliged to publish their gender pay gap. In 2017, the then Prime Minister, the right hon. Member for Maidenhead (Mrs May), promised to ask large employers to publish their ethnicity pay gap data. It has not happened yet. Can the Minister tell us whether that 2017 commitment still stands, and if so, when it will be implemented?

The paucity of data means that there is a lot that we just do not know. Without detailed and reliable data on ethnic minority entrepreneurship, we cannot fully understand the barriers that exist, as we must if we are to remove them. In this recession, the gap between ethnic minorities and others in business may well get worse. We need to grip this issue now, so that trends can be monitored and support appropriately targeted. We cannot meet the needs of minority-led businesses without having adequate information about their characteristics and their performance.

In the LCCI report, Dr Tony Matharu, chair of the LCCI’s Asian Business Association, and Lord Michael Hastings, chair of its Black Business Association, call for financial institutions to collect data about their support for ethnic minority businesses, as they do for women-led businesses under the Investing in Women code.

The two issues that I have highlighted are part of a much bigger set of challenges. When the Minister responds, can she assure us that the Government recognise the need, spelled out by the LCCI, for strategic engagement between the business community, Government and ethnic minority entrepreneurs?

Employment Relations (Flexible Working) Bill (First sitting)

Lisa Cameron Excerpts
Kevin Hollinrake Portrait Kevin Hollinrake
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No, the review was of the 2014 regulations, but it was published in September last year, so the actual consultation was much more recent than that.

Lisa Cameron Portrait Dr Lisa Cameron (East Kilbride, Strathaven and Lesmahagow) (SNP)
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I thank the Minister for the points he is making, and I think this is an excellent Bill. I welcome flexible working from day one, as does the SNP. Does the Minister agree that it will be an important step in addressing the disability employment gap? That gap is far too large and means that we are missing out on the potential of many people in the population who have a lot to give to the economy, and can really contribute in a positive way, but, so far, have not been afforded the opportunities that they should have been.

Kevin Hollinrake Portrait Kevin Hollinrake
- Hansard - - - Excerpts

I entirely agree. Whether they are related to a disability, childcare responsibilities or semi-retirement, such provisions mean that we can bring talented people back into the workplace, which is good for the talented people and for the workplace. I therefore entirely agree with the hon. Lady’s point.

To address the point that the hon. Member for Hampstead and Kilburn raised about whether an employee or potential employee can challenge the employer, it is about a dialogue. That is the key to this, and, as part of the legislation, there will be a dialogue between employer and employee around flexible working, so a discussion can happen at that point. The employer would have to set out a reason for refusal—there are eight reasons, such as customer service or productivity—so, at that point, there is not an appeal process. It is important to have a balance between the rights of employers and of employees, and I think that this strikes the right balance.

Corporate Transparency and Economic Crime

Lisa Cameron Excerpts
Monday 28th February 2022

(2 years, 1 month ago)

Commons Chamber
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Kwasi Kwarteng Portrait Kwasi Kwarteng
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I pay tribute to my hon. Friend, who has been speaking about these affairs with a great deal of knowledge and passion for many years, and I have engaged with him on these subjects. He will also appreciate that what we are doing in bringing forward this legislation does not capture the entire economic crime package. There are other measures that we will be looking to bring in very soon.

Lisa Cameron Portrait Dr Lisa Cameron (East Kilbride, Strathaven and Lesmahagow) (SNP)
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There have been desperate calls from Ukraine that Russian and Belarusian crypto-assets be frozen and that blocks be put on users from Russia who may seek to mitigate the impact of sanctions through this means. Will the Secretary of State meet the all-party parliamentary group for crypto and digital assets, which I chair, because we want to work responsibly with the Government to make progress on this important matter?

Kwasi Kwarteng Portrait Kwasi Kwarteng
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The hon. Lady raises a key issue. It is of great relevance to me and my Department, and also of relevance to the Department for Digital, Culture, Media and Sport. I would like to say very briefly that the UK has led on this. The fact that Russian financial institutions are being denied access to SWIFT has been very much a success of our diplomacy, but I am very happy to talk to her about further measures.

Oral Answers to Questions

Lisa Cameron Excerpts
Tuesday 23rd March 2021

(3 years ago)

Commons Chamber
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Paul Scully Portrait Paul Scully
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My hon. Friend, having worked in the sector, is an excellent champion for it. I understand that these remain extremely challenging times for the furniture industry, which particularly relies on retail premises to sell its products. I speak to the British Furniture Confederation on a regular basis as part of my roundtables, but I am always happy to meet my hon. Friend and the confederation itself.

Lisa Cameron Portrait Dr Lisa Cameron (East Kilbride, Strathaven and Lesmahagow) (SNP)
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If he will make a statement on his departmental responsibilities.

Kwasi Kwarteng Portrait The Secretary of State for Business, Energy and Industrial Strategy (Kwasi Kwarteng)
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In my two months as the BEIS Secretary of State, I have now held meetings with more than 200 businesses across the United Kingdom listening to their concerns and their hopes for the future. Last week, it was my real pleasure to see BEIS helping to make that future brighter when we launched our industrial decarbonisation strategy, which allocates more than £1 billion to driving down emissions from industry and public buildings. We have also published proposals for reforming audit and corporate governance, which will cement Britain’s status as the premier investment destination by raising standards, deterring fraud and empowering, potentially, a new regulator.

Lisa Cameron Portrait Dr Cameron [V]
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The Secretary of State will be aware that the National Engineering Laboratory based in my constituency in East Kilbride has put together a vital proposal to build a clean fuels metrology centre. Given that this project enjoys cross-party support and is vital to the UK’s transition to a decarbonised economy, will he meet me, cross-party members of the all-party hydrogen group and industry representatives to discuss how to progress these important matters?

Kwasi Kwarteng Portrait Kwasi Kwarteng
- Hansard - - - Excerpts

I would be delighted to meet the hon. Member and her associates in this enterprise. She will know that as Minister of State for Energy I was particularly keen on this new technology and I commissioned a hydrogen strategy that will be published in the next couple of months. I am very interested in this and of course I would be delighted to meet her and her colleagues.

UK Hydrogen Economy

Lisa Cameron Excerpts
Thursday 17th December 2020

(3 years, 3 months ago)

Westminster Hall
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Westminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.

Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.

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Lisa Cameron Portrait Dr Lisa Cameron (East Kilbride, Strathaven and Lesmahagow) (SNP)
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It is a pleasure to serve under your chairpersonship today, Ms Rees.

I start by thanking the hon. Member for Rother Valley (Alexander Stafford) for securing this debate on an issue that is extremely important to so many areas across the United Kingdom, including my own constituency. Drawing on his own expertise in the sector, he spoke in great detail and outlined many of the issues that will be of the utmost importance for the hydrogen strategy. I thank him for that and for his dedication in raising these issues in what is his second debate in the House of Commons.

To reach the Government’s goal of net zero greenhouse gas emissions by 2050 and to honour the Scottish Government’s commitment to achieve the same goal by 2045, we will need to maximise the use of all potential options for decarbonisation. Until this point, hydrogen has been a massively underused option, but it is one that should be prioritised in Government planning and funding in the future. In particular, we need to be aware of the fact that, while electric cars, wind turbines and solar panels are widely accepted by the public—and their imaginations—right across the United Kingdom, the concept of hydrogen as a potential low-carbon secondary energy source is still alien to most of them. Therefore, I first urge the Minister to consider what steps the Government can take to maximise public understanding of hydrogen as a vital asset in combating climate change.

[Siobhain McDonagh in the Chair]

I welcome the Government’s White Paper, which outlined their aim to increase the UK’s low-carbon hydrogen production capacity to 5 GW by 2030 and committed them to publishing a more detailed report in 2021 focusing on the UK’s hydrogen strategy. I urge them to publish the report without delay. Hydrogen is one of the key concepts of the future that will take us towards our climate goals.

When the Government publish their strategy, the projects and partnerships already implemented across Scottish businesses and by the Scottish Government may be relevant. I am always a keen advocate of learning from and sharing best practice right across the United Kingdom, and I would highlight in particular the Green Hydrogen for Scotland partnership between ScottishPower, BOC and ITM Power, and the Aberdeen hydrogen bus network, which introduced the world’s first hydrogen-powered double-decker bus earlier this year.

I would also highlight the hydrogen heating pilot scheme to be introduced in 300 homes in Fife by the Scottish Government in 2022. That scheme and the idea of using hydrogen for heating homes have been well documented in the past. It is particularly attractive in constituencies such as my own. East Kilbride was a new town developed just after the second world war, and now contains a significant proportion of ageing and dense housing stock where heating pumps may not always be a viable option.

The Government’s White Paper mentions plans for neighbourhood hydrogen heating trials. I press the Government to consider the possibility of new boilers being fitted as hydrogen-ready. Given the industrial age of my constituency and the housing stock I have described, I ask that the Minister consider East Kilbride, Strathaven and Lesmahagow as one of the pilot sites when the Government consider those options.

Hydrogen fuel cell vehicles must also be viewed as a crucial option in securing a transition towards green carbon-neutral transport. However, Government funding for hydrogen refuelling infrastructure and stations must be prioritised and detailed in the report on the hydrogen strategy that is due to be published.

In my constituency, a study undertaken by ScottishPower Energy Networks concluded that if all the fossil fuel-powered vehicles were changed to battery electric vehicles, a significant upgrade of the electricity grid would be required. It was estimated that that would take five years, cost £10 million and involve a new major substation and the laying of nearly 70 km of new cables. Hydrogen may well offer a cheaper alternative to electrifying every vehicle on our roads. It has the potential to be rolled out with significantly less disruption to transport networks in coming years and is ideally suited to many parts of the United Kingdom—particularly many of the rural areas of my constituency and across Scotland. Far more research is needed, and ring-fenced funding must also be allocated, if we are to see hydrogen playing a pivotal role in the transition to renewable and low-carbon energy.

Hydrogen also presents tangible opportunities for sustained future employment in my constituency and across Scotland. For example, TÜV SÜD National Engineering Laboratory, located in East Kilbride, is the UK’s designated institute for flow measurement and is part of the UK’s national measurement system, which is already funded by the Department for Business, Energy and Industrial Strategy. The measurement traceability it provides underpins every fiscal and financial transaction that occurs in the UK for liquid or gaseous fuel, traded on readings from flow meters. I have been out to visit, and although I cannot assure the Minister that I understood absolutely all the scientific information that was imparted to me, I certainly tried my best.

The laboratory has been transitioning jobs from oil and gas to the hydrogen sector already and has been working to establish national facilities that will be world-beating. These will provide measurement traceability that allows hydrogen and carbon dioxide for carbon capture and storage to be traded accurately, which I understand is of the utmost importance. Would the Minister, or another Minister from BEIS, be willing to meet me and representatives from TÜV SÜD to discuss potential Government support for the proposed clean fuels metrology centre? That would provide the measurement capability for the UK that will be essential in the adoption of hydrogen as a fuel and the energy vector going forward.

Oral Answers to Questions

Lisa Cameron Excerpts
Tuesday 21st July 2020

(3 years, 8 months ago)

Commons Chamber
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Kwasi Kwarteng Portrait Kwasi Kwarteng
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As my hon. Friend will know, in June 2020 we announced a support package to enable universities to continue their vital research. Universities will be required to use some of that funding for research normally funded by medical research charities. We are continuing to look at this situation and we hope to engage closely with charities to develop an even more robust package.

Lisa Cameron Portrait Dr Lisa Cameron (East Kilbride, Strathaven and Lesmahagow) (SNP) [V]
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My constituents are particularly concerned about Marks and Spencer’s announcement that it will indefinitely close its East Kilbride store due to covid-19, undermining our town centre. Will the Secretary of State support a “fit to trade” licensing scheme proposed by the all-party parliamentary group for textiles and fashion—which I chair—alongside the British Retail Consortium, which will not only offer protection for garment workers across the UK, but provide an incentive for retailers to invest in UK manufacturing, creating thousands of skilled jobs and aiding the economic recovery plan?

Kwasi Kwarteng Portrait Kwasi Kwarteng
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The hon. Lady raises an interesting point, and I or one of my fellow Ministers would be happy to meet her to discuss it further.

Oral Answers to Questions

Lisa Cameron Excerpts
Tuesday 3rd March 2020

(4 years ago)

Commons Chamber
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Alok Sharma Portrait Alok Sharma
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We are committed to securing investment for a UK gigafactory to support electrical vehicle manufacturing. Indeed, last week, I met Andy Street and Ralf Speth, who is the chief executive officer of Jaguar Land Rover, to discuss their thoughts on this matter. We recognise the strength of the west midlands, where £138 million has already been invested in the UK Battery Industrialisation Centre scheduled to open near Coventry this summer.

Lisa Cameron Portrait Dr Lisa Cameron (East Kilbride, Strathaven and Lesmahagow) (SNP)
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T4. [R] As chair of the all-party parliamentary group for disability, I have been receiving representations from entrepreneurs with disabilities who state that they face many more challenges in accessing business loans. Will the Secretary of State speak with colleagues in the Treasury and make sure that there is a strategy to address that, so that a truly inclusive economy can be achieved?

Alok Sharma Portrait Alok Sharma
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The hon. Lady talks about support for business. We provide that through small start-up loans and the British Business Bank, but I or one of my colleagues would be happy to have a discussion with her on the specific issue she raises.

Oral Answers to Questions

Lisa Cameron Excerpts
Tuesday 21st January 2020

(4 years, 2 months ago)

Commons Chamber
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Kelly Tolhurst Portrait Kelly Tolhurst
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I thank my hon. Friend for his question. The Government recognise the importance of postal offices in rural communities, both throughout the UK and in his constituency. There are more than 11,600 post offices nationwide. Access to branches exceeds the national standard that the Government set, with 99% of rural populations living within 3 miles of a post office. The Post Office is currently delivering further investment in rural branches, through the community branch development scheme, to underpin the long-term viability of our post offices, and I am keen to work with it to continue to support that.

Lisa Cameron Portrait Dr Lisa Cameron (East Kilbride, Strathaven and Lesmahagow) (SNP)
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T9. As chair of the all-party group on disability, I have become increasingly concerned that entrepreneurs with disabilities are facing additional challenges in starting businesses, such as on access to business loans. Will the Minister meet our group and ensure that we have a truly inclusive economy? [R]

Kelly Tolhurst Portrait Kelly Tolhurst
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I thank the hon. Lady for her question. I note her interest, her role and the work she has done on this issue, and I will be more than happy to meet her. It is important that everyone in the United Kingdom, no matter who they are, is able to access support from government. We want all entrepreneurs to thrive and I will be happy to work with her to be able to achieve that.