Draft Small Business Commissioner (Scope and Scheme) regulations 2017

Debate between Margot James and Mark Prisk

Tuesday 21st November 2017 General Committees

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

I beg to move,

That the Committee has considered the Small Business Commissioner (Scope and Scheme) Regulations 2017.

It is a pleasure to serve under your chairmanship, Mr Sharma. The regulations set out further detail on which small businesses qualify for the Small Business Commissioner’s services, including the complaints scheme. Late payment remains a significant issue; according to Bacs Direct Credit figures, the overall debt owed to small and medium-sized businesses in July 2017 as a result of late payments was £14.2 billion. We all rely on the UK’s 5.5 million small and medium-sized businesses for jobs, goods and services. An unfair payment culture that hurts them has no place in a well-functioning economy, so the Government are taking several steps to tackle late payments. As well as the regulations before the Committee, these steps include the prompt payment code—an industry-led code of conduct that sets out best payment practice—and the payment practices reporting requirement, a statutory transparency measure for large companies.

The Enterprise Act 2016 established the Small Business Commissioner, whose role will be to support small businesses to resolve payment disputes and avoid future issues by encouraging a culture change in the way businesses deal with one another. The commissioner will provide general information and advice; direct small businesses to existing services; consider complaints from small business suppliers about payment issues with their larger business clients; and make relevant recommendations. The Act provides that he can consider only complaints that concern matters that occurred after his appointed start date. We set that date at 6 April 2017 to enable him to accept complaints relating to matters that occurred between 6 April and the formal launch of the complaints service, which will broaden access to the complaints service and help him to build momentum as soon as his office is formally opened. The complaints service will launch as soon as possible after Parliament’s approval of the regulations.

[Mr Mark Prisk (Hertford and Stortford) (Con)]

One challenge relating to late payments that I often see—as do other hon. Members, I suspect—is large companies disputing a payment so that it is put to one side. The dispute is often over a minor matter, but it allows those companies to get away with avoiding payment within 30 or 60 days. Will such abuse on the margins be part of the commissioner’s remit?

[Margot James]

I thank my hon. Friend for that observation; he has considerable experience in these matters, and I would not be a bit surprised if what he says were the case. I will ask the commissioner to consider that practice and other known dodges—for want of a better word—in the course of his work.

The 2016 Act sets out the broad framework for the Small Business Commissioner. The regulations define “small business” for the purpose of qualification for the commissioner’s services, including the complaints scheme; they also provide further detail about the scheme.

Oral Answers to Questions

Debate between Margot James and Mark Prisk

Thursday 8th December 2011 Commons Chamber

[Mr Prisk]

In the first three quarters, the numbers on net lending stand at £66 million. [Interruption.] What I am trying to say to the hon. Gentleman is that we are committed, through Merlin, to ensuring that lending this year is greater than last year. He needs to be careful in this area, because, as he knows, such schemes are subject to demand. [Interruption.] He asked about credit easing, and I will come to that point. I say to the hon. Gentleman that the £20 billion that the Chancellor has put forward is substantially important and will bring about an important increase. What the Opposition need to remember is that we are actually delivering an increase in lending this year over last year. They did not deliver that. We are, and that is the difference.

[Margot James (Stourbridge) (Con)]

5. What steps his Department is taking to support the commercialisation of new discoveries in life sciences.

Oral Answers to Questions

Debate between Margot James and Mark Prisk

Thursday 17th February 2011 Commons Chamber

[Mr Prisk]

I am sorry that the hon. Gentleman is being slightly churlish. He spoke to me only two days ago, when I made it clear that my Department would check the facts. We have done that. The Department for Work and Pensions is already in contact with the company. We are ensuring that we understand both the job issues and the company issues. We are very happy to work with all Members, so I am sorry that he has chosen to be somewhat churlish on this occasion.

[Margot James (Stourbridge) (Con)]

T5. The UK dairy industry is in crisis, with farmers receiving from supermarkets 3p per litre less than the cost of production. This is leading to pressures to intensify dairy farming that are most concerning on grounds of animal welfare and the environment. Will the Minister update the House on plans to introduce a grocery code adjudicator, as announced in the coalition agreement?

Oral Answers to Questions

Debate between Margot James and Mark Prisk

Thursday 13th January 2011 Commons Chamber

[Mr Prisk]

I very much welcome the work that has been undertaken by businesses in the black country, and I pay tribute to them for that. Of course, the regional growth fund has to be based on merit, because it needs to be focused on making sure that the best cases come forward. Like the hon. Gentleman, I suspect that some excellent examples will come forward from his area, and from the west midlands as a whole. Cases must be judged on merit alone.

[Margot James (Stourbridge) (Con)]

The Black Country Reinvestment Society has a very successful record in arranging loans to micro-businesses and small and medium-sized enterprises across the black country. Does the Minister agree that a good way of getting regional growth fund money to small businesses is by enabling grants from the RGF to investment co-operatives such as the BCRS?

[Mr Prisk]

I strongly agree with my hon. Friend, who is also very expert in this area. We can do this not only through the regional growth fund but by ensuring that we work through, for example, the enterprise finance guarantee, so that small institutions such as community development finance institutions are able to participate, and the micro-loans to which she refers can be extended. I have changed the rules; they can now get involved.