Business, Energy and Industrial Strategy: Departmental Spending

Mark Pawsey Excerpts

Tuesday 7th July 2020 Commons Chamber

[Mark Pawsey (Rugby) (Con)]

It is a pleasure to follow the new Chairman of the Business, Energy and Industrial Strategy Committee, who is making good progress. I draw the House’s attention to my entry in the Register of Members’ Financial Interests.

It seems to me that businesses face two separate and distinct challenges right now: meeting the social distancing requirements and complying with the Government regulations on the one hand, while establishing whether there is enough demand for the product or service they provide. Those are very different. Some businesses are unable to trade because of the social distancing requirements or are not permitted to trade, but for many others, there is not enough custom. Either way, that can lead to a decision to cease trading or, far worse, business failure.

In terms of those businesses not permitted to trade, I have had regular contact with Helen Taylor of Helen Taylor Aesthetics in Rugby, which is a clinic offering anti-ageing face and body services and skin treatments. It is an environment with high levels of cleanliness and sanitation, and she believes there is a strong case for her business to be open at a time when pubs, non-essential retail and hairdressers are open. I hope the Minister will be able to give some good news to that sector.

Another sector hit hard in respect of both regulation and demand is hospitality. I welcome the move to 1 metre- plus, but that still represents a challenge in many locations where it is only possible to operate at 70% capacity. For many, that is sub-economic in the short term, so they have not opened. Those businesses, like others, welcome the Government’s support. The furlough scheme and the grants and loans have enabled many to keep going, but the question is, for how long? The hospitality sector employs many young people, and it needs a stimulus. I hope that we will hear the Chancellor announce tomorrow not a tweak to the standard rate of VAT—a small amount off the rate will not make much difference to the decision on whether or not to spend—but zero rating of restaurant meals, which would have a big impact on the sector, taking 20% off the price.

Having set up a business, built it up and then sold it, I want to focus on the Department’s role in encouraging entrepreneurship. I get feedback from regular meetings with the Federation of Small Businesses, my chamber of commerce and other business breakfast groups, and one of the best and most interesting inquiries the Select Committee did in the last Parliament was on small business productivity. We found that the support for people running small businesses and the guidance and advice is incredibly patchy. Those running businesses are often unsure where to go and unsure of their obligations in running a business, and that continues through their life.

It is important to recognise that businesses are often set up because somebody is good at a particular trade. They may be an electrician or a builder, and they may have done an apprenticeship. They have learnt the skills needed in that trade, but few have had any training in running and managing a business. It is a different skillset, and it is one that Government need to recognise. Some support is provided by local enterprise partnerships and growth hubs. We have a fantastic one in Coventry and Warwickshire, but we heard that this was incredibly patchy.

We also heard that businesses should make time to work on their business as well as within their business. Often businessmen are too busy, but they need to make some time available and have some support for personal development. One of the skills that we need more businesses to have is salesmanship. Nothing happens until a sale is made. Salesmanship is a professional career recognised by the Association of Professional Sales, and right now, we need the country’s best salesmen pushing for sales of UK-produced products.

[Caroline Nokes (Romsey and Southampton North) (Con)]

I am taking from my own time by intervening, but my hon. Friend has said “businessmen”, “salesmen”, “salesmanship” and “salesmen” again—will he please acknowledge that there are women in this world?

[Mark Pawsey]

I certainly acknowledge that point. With four minutes to speak, I am rushing through the content of my speech, but I take the point. We need people to be trained in these skills.

With the little bit of extra time I now have, I want to put in a plug for manufacturing. My constituency is adjacent to Coventry, the home of motor manufacturing. My constituency is also home to the Manufacturing Technology Centre, which has contributed to a new paper, “West Midlands: the Speed to Scale Region”. There is a strategy to deliver new products at pace, and we need to make certain that we include manufacturing as part of our overall business mix.