Covid-19 Lockdown: Homelessness and Rough Sleepers

Debate between Mark Pawsey and Kelly Tolhurst

Wednesday 11th November 2020 Commons Chamber

[Mark Pawsey (Rugby) (Con)]

I welcome the measures and the very significant funding that the Minister has announced today. Does she agree that it is important to take the same kind of approach as that taken by Rugby Borough Council through its preventing homelessness and improving lives programme? That has made a tremendous difference to local families at risk of homelessness through early intervention by a dedicated support team, working with those who are vulnerable to prepare a plan to avoid a crisis situation later.

[Kelly Tolhurst]

My hon. Friend is absolutely right: it is by the good practice of councils such as Rugby Borough Council and programmes of that nature that they are able to work with those families and individuals before there is a need for them to sleep rough or become homeless—it is prevention. We know that since we implemented the Homelessness Reduction Act, that has had a significant impact in many parts of the country. I am pleased that we are determined and committed to make sure we implement that even further and work with local authorities to get better results.

Flybe

Debate between Mark Pawsey and Kelly Tolhurst

Thursday 5th March 2020 Commons Chamber

[Kelly Tolhurst]

As the right hon. Gentleman will appreciate, we are working across Government—across the Department for Business, Energy and Industrial Strategy and with colleagues in the Department for Work and Pensions—on the response to the collapse of Flybe, to make sure that all the issues and troubles, particularly for staff, are addressed and that we are able to respond. I am happy to give him more updates at our briefing later in relation to specific, detailed questions on some of the issues that he raises. We stand ready to make sure that we deliver for individuals who have been made redundant. We also learned a lot from Thomas Cook’s collapse, but I remind him that this is not at the same level as it was with Thomas Cook.

[Mark Pawsey (Rugby) (Con)]

Flybe is regrettably the second failure of a UK-based business in this sector in just six months. What parallels does my hon. Friend see with the collapse of Thomas Cook last September, and what lessons have been learned to ensure that the sector is not affected again in the near future?

[Kelly Tolhurst]

My hon. Friend will know that we are working hard with the industry and the sector to understand some of the challenges. It is key to highlight that the Flybe collapse, in particular, has been reported as being due to the effects of coronavirus, so we are obviously seeing the impacts of that. We are not where we wanted to be as a Government—we were working hard to secure Flybe’s future. However, he is absolutely right, and as a responsible Department, we are making sure that we have those conversations with businesses and are absolutely on board with what is going on.

Oral Answers to Questions

Debate between Mark Pawsey and Kelly Tolhurst

Tuesday 22nd October 2019 Commons Chamber

[Kelly Tolhurst]

I point out that discrimination in the workplace is illegal; it is unlawful. I have just outlined that we have announced our intention to extend redundancy protection for those mothers who return to work.

[Mark Pawsey (Rugby) (Con)]

14. What support her Department is providing for the development of electric vehicle technology.

Businesses: Late Payments

Debate between Mark Pawsey and Kelly Tolhurst

Wednesday 19th June 2019 Commons Chamber

[Kelly Tolhurst]

I apologise to the hon. Gentleman for the fact that he did not receive a copy of my statement in sufficient time. That was not my intention at all. I hope that he will understand, following the many debates that he and I have had in the House, that that is not how I tend to work with him. I thank him for recognising that this statement should have an impact on the late-payment problems of many small businesses. One thing that has been made absolutely clear to me since I became a Minister—and actually prior to being elected, when I was a small business owner myself—is that late payment is always raised by companies that deal with large organisations. I am very pleased to be able to move forward on this matter.

The amount of money owed in late payments has halved. I wish to recognise the work that has been done by the small business commissioner since he took up his role one and a half years ago. He has collected more than £3.5 million in late payments. The hon. Gentleman is right to question his role and when the consultation will take place. We want that consultation to happen quite quickly. One of the key things that came out of the call for evidence was that people wanted more powers to be given to the small business commissioner. They saw his role as, in effect, an umbrella role encompassing a number of enforcement abilities for him to act on behalf of small businesses.

The consultation will happen soon, and I would like it to take place with speed. I reiterate that, as we seek views on whether we should allow the small business commissioner to apply sanctions such as binding payment plans and financial penalties, that would be a massive step change and step forward. The small business commissioner has been very vocal in requesting more powers to enable him to represent and help the small businesses that come to him.

We will also be seeking views on whether the small business Minister should have the ability to refer topics to the small business commissioner for investigation. The small business commissioner will currently investigate only once a complaint has come from a small business, so we are looking at other ways in which investigations could be carried out. Obviously, I am giving hon. Members just a sample of what will be included in the consultation.

The hon. Gentleman is quite right on the matter of boards. On the back of the Chancellor’s announcements in the spring, we are pleased to give audit committees the power to review payment practices and for that to be included in the annual report. We are working with the Financial Reporting Council and the frameworks department at BEIS to work out the best way for that to happen. The new strategic reporting requirement was introduced in January. We are asking the FRC how the payment reporting duty is covered by that new duty, if at all. I assure the hon. Gentleman that we will legislate to make that happen if necessary.

The Chartered Institute of Credit Management has worked hard on this issue over recent months, especially on the strengthening of the voluntary prompt payment code in October. We are pleased that cross-examining the data gathered under the payment reporting duty has helped with compliance with the voluntary code. We and the CICM believe that the best place for that duty is with the small business commissioner, so that the commissioner is, in effect, a one-stop shop and an easily identifiable pathway for small businesses.

The hon. Gentleman is right to talk about project bank accounts. Some hon. Members present, including my hon. Friend the Member for Bury St Edmunds (Jo Churchill), have lobbied me in the past on the matter of retentions. We have told the industry that we expect it to come to a consensus on a way forward, and we will take action if it does not.

As the hon. Gentleman knows, we have announced that from 1 September any company bidding for Government contracts over £5 million will be expected to pay 95% of their invoices within 60 days. If they do not achieve that target, they will not necessarily be able to bid for further contracts. In April 2019, we announced our new ambition that 90% of undisputed invoices should be paid to small businesses within five days.

[Mark Pawsey (Rugby) (Con)]

Like the Minister, I ran a small business, so I recognise the challenge of late payments for small businesses. It is to the credit of this Government that they created the role of small business commissioner. The Minister said that she is holding a consultation on additional powers for the small business commissioner, who has often said that he needs more powers. Will she be a little clearer about when those powers might be available to him, and whether they will include the power to fine businesses that fail to honour their commitments? The Business, Energy and Industrial Strategy Committee has heard about many businesses that signed up to the prompt payment code but failed to adhere to its terms, and the small business commissioner needs a little bit more beef to get his teeth into that issue. Finally, will she consider making it mandatory to add interest to overdue accounts, because that would give businesses that are delaying payments a real incentive to get their payments made on time?

[Kelly Tolhurst]

Primary legislation would be required to give further powers to the small business commissioner, so we will seek views and consult. We do want to give the small business commissioner further powers—for example, the ability to apply sanctions to businesses that do not comply with requests for information, court orders or financial penalties. Such sanctions could include binding payment plans.

My hon. Friend asked whether we would consider making it mandatory to apply interest to overdue accounts. There is currently low take-up of the application of interest to invoices, so there needs to be an education piece for small businesses, which we very much hope to achieve through the small business commissioner. With all these elements coming under one roof, he can launch an ambitious PR strategy to enable small businesses to understand what powers already exist for them.