Small and Medium-Sized Enterprises

Lord Mitchell Excerpts

Thursday 22nd November 2012 Lords Chamber

[Lord Marland]

There are elements of give and take in that particular area. The EIS scheme is extremely beneficial. We have raised the limits of tax relief for that scheme—which is the “give”. The “take” is that the Government are concerned that it does not attract unsophisticated investors. It is important that investors are clear about the risk that EIS-registered companies have. After all, most are start-up and new businesses, which have an element of risk. So there is an element of give and take.

[Lord Mitchell]

My Lords, after two and a half years and half a Parliament, it is about time that this Government started taking responsibility for their actions and stop blaming others for the consequences of their own shambles. However, when will this Government understand that announcing convoluted schemes every few weeks is not the primary way to help SMEs to recover? What will help businesses recover is creating an atmosphere of confidence. That will be created by increasing demand, and demand will be increased by moving from a policy of ever-tightening austerity into one of strategic economic growth.

[Lord Marland]

If I may say so, that is a rather disappointing question from someone with so much expertise in business. We all know that the heart of the problem is the banking crisis. That was not caused on our watch, so we are perfectly entitled to look in the rear view mirror and say that it was not our fault. I do not think there is any lack of entitlement there. We have to get finance into the market, but what is much more important is that we have to be outward looking and developing trade. That is what the Government are doing and, my goodness, I have been to some countries over the past few years that have not had a labour trade Minister for years. That is why the Government are committed to expanding exports, helping SMEs and helping big companies to act as mothers to smaller companies in an export drive that is going to be fundamental to our growth.