Small and Medium-sized Enterprises: Great Yarmouth

Nigel Evans Excerpts

Wednesday 7th June 2023 Commons Chamber

[Brandon Lewis]

My hon. Friend is spot-on. That challenge has been fed into me recently by a number of businesses: they have asked what more the Government can do to ensure there is collaboration between the Government and industry to deal with energy pricing. The rise in energy prices is one of the big challenges coming out of the problems of covid and particularly the abhorrent invasion of Ukraine by Putin. The Government have rightly put protection in place for households, and I congratulate them on that, but many businesses are still struggling with rate rises of up to 400%. They are often businesses working on small, single-figure margins—often of 1% or 2%.

The pub industry is tough: it is hard work making sure the client and customer is happy and has a good experience. We need to make sure that we have the support in place to not lose more pubs. We all know we are losing pubs and that lifestyles are changing. It is not necessarily the Government’s responsibility to fix all those issues, but we do need to be cognisant of what more we can do to work with the energy industry to ensure that we have the biggest possible impact for businesses, as some of their rising costs through inflation go back to the challenges from rising energy prices.

My hon. Friend is right, too, that the hospitality industry is one of the first to see any warning light for our economy, as, indeed, is the housing sector. If we want more houses to be built across our country, we need SME house building businesses to be building. I know some of the chief executives of our big house builders. One of them, who sadly has passed away now, always said to me when I had responsibility for the sector in government that one of the challenges today is that the regulation and the restrictions on housing make it very difficult for people to do what he and some of his competitors did in the past—those big house builders that started as sole traders—which was to borrow money and get through the planning process in order to build even one or two homes.

If we were able to invigorate SMEs in the housing sector to build those small numbers of homes in our villages and towns across the country—wherever we need them; in the right places and of the right quality—that would make a huge difference to our economy, because it has a knock-on effect. It is not just about the house, which itself improves social mobility; it is about everybody who is employed in building the house, and about the person who moves into it going to buy some paint or whatever else to decorate it. That all adds to the economic boost and growth for our country, and it is why we benefit by about 1% of GDP for every 100,000 homes built in this country.

Our hospitality industry is a canary in the mine showing what condition the economy is in, as my hon. Friend said. Those businesses I was talking about earlier—the larger and the medium-sized businesses—entertain clients and customers, and hospitality notices first if there are fewer of them, if those businesses are taking less time to entertain because they have fewer customers and visitors, and if we as individuals are spending less money in hospitality.

It plays an important part in the economy. People think of hospitality in places like Great Yarmouth as being just there for visitors, but it is there for business as well. In Northern Ireland, I spoke regularly to businesses who would use the hospitality pull of Northern Ireland as part of the sales pitch for their business in the engineering sector. It is a very important sector for our economy, and it thrives and relies on those SMEs.

The majority of that sector is SMEs. Big companies like Haven Holidays have a huge presence in constituencies like mine, but it is the small businesses that knit things together and support people across the villages and the coastal towns. I have seen that at first hand in Hemsby in Great Yarmouth, where almost all the businesses are independent or family-owned. They have come together to protect the coastline and literally defend the homes of people, and they have helped people who have lost their homes when they have fallen into the sea because of the coastal erosion we have had over the last few years. There have been some very dramatic circumstances. The businesses with a sense of passion for their community —the publicans and business owners in Hembsy—have come together to drive the campaign to make sure we get the support for the residents who need it, as much as for the businesses themselves and the visitors who come to enjoy the beach that we want to protect.

I have seen time and again the importance of SMEs across the whole of the UK economy, as I have outlined. Many people—the majority in our country—are employed in SMEs. I know the Minister is cognisant of this, but in everything we do we should always be thinking about what more we can do to help today’s sole trader become a small business, and today’s small business become a medium-sized enterprise, with a view to how they grow into the big plc of the future; because without doubt for me in Great Yarmouth, our small and medium-sized, predominantly family-owned, businesses are the heartbeat of the constituency, and they end up being the heartbeat of our country.

[Mr Deputy Speaker (Mr Nigel Evans)]

Before calling the Minister, I must say that it is rare and impressive to hear a content-packed speech delivered without notes, so congratulations.