Small Businesses

Lord Harrison Excerpts

Wednesday 9th February 2011 Lords Chamber

Asked By

[Lord Harrison]

To ask Her Majesty’s Government what role they forecast small businesses will play in the Big Society.

[Baroness Warsi]

My Lords, small businesses are the cornerstone of our economy and have a vital role to play in growing the big society. Businesses already make a significant contribution in supporting local voluntary and community organisations by sharing assets and expertise, philanthropic donations and exchange of staff. In December of last year, we launched Every Business Commits, asking businesses to do their part in growing the economy as well as in helping to tackle social problems and building stronger communities.

[Lord Harrison]

Given the Government’s failure to define the big society and, indeed, the role of small businesses within it, especially in helping to strengthen local communities, will the Minister look again at the regional growth fund, whose administrative possibilities—the £1 million threshold that it applies and the early closure date—mean that there has been a restriction on small businesses? Also, given the Government’s failure in their tepid approach to getting the banks to help out small businesses, will she take up the idea proposed by the chairman of the London Stock Exchange to encourage blue chip companies to contribute to funding small businesses, especially those that are regional and have an innovative flair to them?

[Baroness Warsi]

My Lords, the big society is defined by many in this House as being what most of them have done for most of their lives. It is a volunteering, social action, philanthropic approach to life, but it is also about the opening up of public services to local control and devolution of power. The regional growth fund is a discretionary fund to stimulate economic growth and employment and will operate over a period of three years. In particular, it will help those areas and communities that currently depend on the public sector to make the transition to sustainable, private sector-led growth and prosperity. Small and medium-sized enterprises have a vital role to play in that.