Oral Answers to Questions

Margot James Excerpts

Tuesday 31st January 2017 Commons Chamber

[Dr Caroline Johnson (Sleaford and North Hykeham) (Con)]

17. What steps he is taking to support the self-employed.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Margot James)]

The gov.uk website and the business support helpline provide information on starting and running a business. Growth hubs also provide access to local and national support. Some 4.8 million people are currently self-employed.

[James Cleverly]

When I started a business, I found that one of the most intimidating elements was employing my first member of staff. What more can the Government do to encourage and support the self-employed to grow their company and become employers in their own right?

[Margot James]

We will support entrepreneurs across the UK to ensure that they can access finance and wider support so that they can grow. British Business Bank programmes are already supporting £3.2 billion of finance to more than 51,000 smaller businesses, including start-up loans to 39 entrepreneurs in my hon. Friend’s Braintree constituency.

[Robert Courts]

This matter is particularly close to my heart, given that I was self-employed until a few months ago. Of course, there are many self-employed businesses in rural areas of West Oxfordshire. Can the Minister assure us that the Government will continue to make it easier to start and grow a business by deregulating, creating an attractive tax environment, and helping businesses to attract and seek the finance that they need?

[Margot James]

We continue to work hard to make the UK a great place to start and grow a business. According to OECD statistics, we are internationally the third best place to start a businesses, but we are 13th when it comes to the best place to grow a business, which is where my focus as small business Minister is going to lie. I very much welcome the support of my hon. Friend.

[Victoria Borwick]

North Kensington, an area that the Minister knows, has several fantastic initiatives through which new start-ups have access to shared space. Are there any plans to reduce business rates and provide relief for small companies using shared space initiatives?

[Margot James]

The Treasury has no plans specifically for shared work spaces, but at the last Budget, the Chancellor announced £6.7 billion of cuts to benefit all business rate payers. They include permanently doubling small business rate relief and increasing the thresholds from 2017.

[Dr Caroline Johnson]

Will my hon. Friend tell us how the industrial strategy will support disabled people who want to start and grow their own businesses?

[Margot James]

The disabled employment programme is an important part of our work in labour markets, and it is backed by many top retailers. We will continue to press this issue and work with the Department for Work and Pensions for greater access to work for people with disabilities.

[Dame Rosie Winterton (Doncaster Central) (Lab)]

In order to grow the businesses of the self-employed, they need access to good-quality training. When I met the Doncaster YMCA and its apprentices last week, an issue was raised about clarity regarding funding during the transitional arrangements for the Skills Funding Agency going to the Department for Education. Will the Minister take an urgent look at this?

[Margot James]

I thank the right hon. Lady for bringing this to our attention. A new approach to improving access to skills and apprenticeships is a fundamental part of our new industrial strategy. I will raise the matter that the right hon. Lady mentions with the Secretary of State for Education.

[Ms Margaret Ritchie (South Down) (SDLP)]

Many self-employed people recruit apprentices and others who are seeking employment. Given that the report recently produced by the Institute for Fiscal Studies cast doubt on the effectiveness of apprentices, the training scheme and the apprenticeship levy, what are the Government going to do about this?

[Margot James]

Last week the Government launched the new industrial strategy, and the new academies programme for improving skills and access to apprenticeships is working with the existing apprenticeship programme to improve both the quality and number of apprentices.

[Derek Twigg (Halton) (Lab)]

Given that further education colleges have an important role in providing skills and training and help many people to become self-employed workers, does it make sense to cut their budgets?

[Margot James]

Further education colleges remain an important part of our strategy to improve skills and access to apprenticeships, but they are not the only route to apprenticeships. The apprenticeship levy will increase funding for overall access to skills for our young people.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

Compulsory quarterly digital tax updates cause real concern to self-employed people and small businesses. Her Majesty’s Revenue and Customs says that support is available. Will the Minister tell us what support is available to self-employed businesses and how much money is set aside for that support?

[Margot James]

I am sorry; I did not follow all the hon. Gentleman’s question. However, I know that the Treasury is looking into the fairness of taxation as between self-employed people and the rest of the workforce. I will read the hon. Gentleman’s question in Hansard and write to him accordingly.

[Richard Fuller (Bedford) (Con)]

The ranks of self-employed people are being expanded by an increase in independent working. Will my hon. Friend ensure that labour market regulations are updated so that employee rights are maintained?

[Margot James]

I very much agree with the thrust of my hon. Friend’s question. The Prime Minister has appointed Matthew Taylor to undertake a review of employment practices in the modern economy to ensure that while we embrace new technologies, we also protect workers’ rights.

[Rob Marris (Wolverhampton South West) (Lab)]

What are the Government doing about the scourge of bogus self-employment, which too often is a rip-off of the workers concerned and a rip-off of HMRC?

[Margot James]

The Taylor review will also look into that very important issue. A worker’s contract with his or her employer is the fundamental basis on which he or she is judged to be self-employed or an employee, and that distinction will be closely scrutinised by Matthew Taylor.

[Rehman Chishti (Gillingham and Rainham) (Con)]

7. What steps the Government are taking to support the growth in the number of SMEs in Kent and Medway.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Margot James)]

SMEs in Kent are fundamental to our economy, as they are everywhere else. Through local growth funds, the work of Kent County Council and the business operations of Kent and Medway, the Government will ensure that the area benefits hugely from the increased number of SMEs.

[Rehman Chishti]

In view of the Government’s commitment to investment in infrastructure, which will assist businesses in Kent and Medway, will the Minister confirm their commitment to the Lower Thames crossing, along with extra investment for Kent roads, which will provide connectivity for local businesses?

[Margot James]

The Department for Transport will make an announcement, but my hon. Friend should be reassured that Kent County Council and the relevant business organisations are working closely with my Department to ensure that there are extensive improvements in the transport infrastructure in his constituency and the wider county.

[Hannah Bardell (Livingston) (SNP)]

rose—

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[Hannah Bardell]

You can be assured of that, Mr Speaker.

The SMEs in Kent and Medway need someone in government to fight their corner. In July 2015, they were promised a small business commissioner who would focus particularly on late payments. The Federation of Small Businesses and others have raised concerns about the lack of power that the commissioner will have, and the fact that 18 months after the position was created, there is no sign of a commissioner. Will the Minister tell SMEs in Kent and Medway, for which I have the greatest regard, and others throughout the country when the commissioner will be appointed, and whether he or she will have proper powers to ensure that companies that do not pay are taken to task?

[Margot James]

First, I can reassure the hon. Lady that Kent and Medway is ably championed by my hon. Friend the Member for Gillingham and Rainham (Rehman Chishti), who asked the original question, but apropos of her specific point, we are in the process of appointing the small business commissioner at the moment; he will be in post by the summer and able to take complaints on the important issue of prompt payment in the autumn of this year.

[Tim Loughton (East Worthing and Shoreham) (Con)]

8. What assessment he has made of the potential contribution of power generated by tidal lagoons to UK energy provision.

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[Chris Davies (Brecon and Radnorshire) (Con)]

16. What recent discussions he has had with the Chancellor of the Exchequer on improving access to finance for businesses.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Margot James)]

My right hon. Friend the Secretary of State has had discussions with the Chancellor on building the Government’s industrial strategy, which includes ensuring that businesses can access the finance they need. We already help businesses through the business finance and support finder on gov.uk, and we recently launched the finance platforms service, which offers small and medium-sized enterprises that have had finance rejected by the large banks the option of a referral to alternative finance providers.

[Chris Davies]

With many new online alternative finance companies springing up across the UK, what is my hon. Friend doing, first, to ensure that our small and medium-sized enterprises know about these alternative ways of accessing finance, and, secondly, to give them the confidence to borrow from such organisations?

[Margot James]

The British Business Bank has created the business finance guide, which is widely distributed and offers comprehensive information about the financing options available to businesses, including alternative sources of finance. The Financial Conduct Authority regulates peer-to-peer lending platforms and is currently reviewing its regulatory regime to ensure that it is robust and up to date.

[Mr David Hanson (Delyn) (Lab)]

What assessment has the Minister made of the impact of bank closures in town centres on the availability of business finance, to ensure that those such as my local one in Holywell, which is potentially losing three banks this year, will still have access to business finance and will still be positive town centres?

[Margot James]

The impact of bank closures is, to some extent, ameliorated by the Post Office’s announcement a few weeks ago that it will be enabling both personal and SME banking customers to have a massive increase in face-to-face banking services across the country.

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[Greg Mulholland (Leeds North West) (LD)]

Last week, the Under-Secretary of State for Business, Energy and Industrial Strategy, the hon. Member for Stourbridge (Margot James), said that there had clearly been instances of the pubs code being flouted and that Members should bring such things to her attention. I have a case in her own constituency to bring to her attention, which also shows that the adjudicator is not doing his job. May we discuss this matter please?

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Margot James)]

I am very happy to discuss the case in my own constituency with the hon. Gentleman, but the Pubs Code Adjudicator is doing a good job. His line of inquiry has received 435 inquiries to date and 121 referrals for arbitration, but I will discuss the problem with the hon. Gentleman.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

The industrial strategy makes a clear commitment that future rounds of infrastructure investment will take into account the balance of spending per head as between different regions. On the basis that there is a 60% imbalance between London and the rest of the country at the moment, what balance would the Secretary of State like to see going ahead?