Oral Answers to Questions

Penny Mordaunt Excerpts

Thursday 27th February 2020 Commons Chamber

[Greg Smith (Buckingham) (Con)]

17. What plans he has to support small and medium-sized businesses in bidding for Government contracts.

[The Paymaster General (Penny Mordaunt)]

We have introduced measures to tackle barriers faced by SMEs in the procurement process. In the last financial year, we spent almost £2 billion more with SMEs than we did in the preceding year.

[Dr Wallis]

In my constituency of Bridgend in south Wales, the SME market will be absolutely key to making a success of Brexit. Will my right hon. Friend commit to working with the devolved Administrations, so that all parts of the UK will see progress when it comes to SMEs accessing Government contracts?

[Penny Mordaunt]

I congratulate my hon. Friend on all the work that he has been doing to open up opportunities for his constituents, and particularly SMEs and entrepreneurs. I can commit to, and have already had, conversations with the devolved nations. The contract finder that the Department has set up, offering greater transparency about those opportunities, is just one way that we are assisting, and I would be happy to meet him to discuss other ways that we can support his efforts to ensure that all his constituents have maximum opportunity.

[Angela Richardson]

I thank my right hon. Friend for her previous answer and it is great to see her on the Front Bench. Ninety-nine per cent. of businesses registered in Guildford are SMEs. What steps is the Minister taking to simplify the bureaucracy involved and minimise the cost to SMEs of quoting for Government business?

[Penny Mordaunt]

I congratulate my hon. Friend on the work that she is doing for all the businesses in Guildford. We have committed to removing barriers to small businesses in our commercial arrangements, and have already removed the complex pre-qualification questionnaires that people used to have to fill out for even low-value contracts. We will continue to look at other ways that we can ensure that SMEs have maximum opportunity to bid for work.

[Saqib Bhatti]

I welcome the Minister’s comments. Does she recognise the role that business support organisations play—such as the Institute of Directors, the Federation of Small Businesses, the British Chambers of Commerce and local enterprise partnerships, which lead on the growth hubs—in helping to bridge the knowledge gap for SMEs that have to deal with such difficult processes?

[Penny Mordaunt]

I thank my hon. Friend for the opportunity to pay tribute to those business organisations, and it is great to see him in this place, with all his expertise in this area. Those organisations play a critical role, and we must listen to what they are saying and look at ways to increase the opportunities for all their members. We want to improve our communications and relationships with those organisations.

[Greg Smith]

Small businesses often tell me that late payments are a significant concern when bidding for not just Government contracts, but all contracts with large companies. What steps can my right hon. Friend outline to ensure that there is a level playing field for small businesses applying for Government contracts?

[Penny Mordaunt]

We want SMEs to have confidence that they can bid for work. The prompt payment measure, which was introduced last September, has been a key part of the Government’s work to focus on breaking down those barriers for small and medium-sized enterprises. Suppliers that do not comply with that will be struck off, and we have done that. There is more that we are looking at; my hon. Friend will know that there is debate about channelling some of the fines for those with poor practice into compensation for small enterprises.

[Bill Esterson (Sefton Central) (Lab)]

All the friendly questions from the Whips Office do not hide the reality, which is that the Government have had 10 years to get this right. More small businesses than ever have given up trying to win Government contracts, and I am afraid that the figures do not stack up; they are worse now than when the Government came in. When will they stop giving the lion’s share of lucrative Government contracts to the Carillions of this world and start treating our excellent small businesses fairly?

[Penny Mordaunt]

I notice that there were no facts in that question. If the hon. Member looks at the facts, he will see that a greater and growing number of small and medium-sized enterprises are registering to become suppliers. He will see that 12 Departments in particular are massively increasing the amount of work that they are doing with small enterprises. Rather than criticising my Government colleagues, he might like to start standing up for small businesses in his constituency.

[John Spellar (Warley) (Lab)]

I think there is unanimity across the House about the need to improve access to Government contracts for small and medium-sized enterprises, but I would prefer it if they were British small and medium-sized enterprises. What action will the Secretary of State take to amend Government procurement regulations so that Departments can start to prioritise British firms, British products and employment of British workers?

[Penny Mordaunt]

The right hon. Gentleman is absolutely right. He knows this Administration are focused on increasing opportunities across every part of this country. Now that we have left the EU, we will have new opportunities as we design the future procurement rules. I hope that both sides of the House can come together behind that work, so that we have maximum opportunity for every part of the UK.

[Jim Shannon (Strangford) (DUP)]

Can the Minister confirm that post Brexit, contracts’ scoring metrics will be able to add weight for local builders, so that we can keep the money in the local economy?

[Penny Mordaunt]

As the hon. Gentleman knows, we are considering what reforms we can bring in. We have set out clearly the principle that this is not just about the immediate return on investment; it is about the long-term opportunities that procurement would open up for every part of the UK.

[Mr David Davis (Haltemprice and Howden) (Con)]

2. Whether his Department has made an assessment of the extent to which the use of voter identification will tackle voter fraud.

--- Later in debate ---

[The Paymaster General (Penny Mordaunt)]

The Government are committed to delivering value for money, including from the additional £100 billion of investment in infrastructure that we have recently announced. That means that spending will not just be narrowly focused on where it brings the highest immediate economic return; it will also be focused on where it may unlock productive potential in the future.

[Felicity Buchan]

In London, under the stewardship of Transport for London and the Mayor of London, Crossrail is £2.5 billion over budget and two and a half years behind schedule. Will my right hon. Friend ensure that those mistakes are not made elsewhere in the country?

[Penny Mordaunt]

I know that this is a frustration for my hon. Friend’s constituents. The Infrastructure and Projects Authority has worked with the Department for Transport and across Government to identify and implement the key lessons to be learned from such major projects, and the IPA provides challenge that is fair and accurate, through an independent assurance review of major Government projects.

[Chris Loder]

Will my right hon. Friend assure me of the Government’s commitment to vital rail infrastructure funding for Dorset and the surrounding counties, given that we have a three-hourly rail frequency in our county and it takes us almost three hours to get to London?

[Penny Mordaunt]

I pay tribute to my hon. Friend for his election and, as the whole House is aware, for going above and beyond the call of duty in ensuring that his constituents could use train services during the recent strikes. As I say, we are investing an additional £100 billion in infrastructure, and we are seeking to ensure that we prioritise the right projects, taking a whole-network and whole-life-value approach. His representations have been well made, and they are being listened to.

[Rob Butler]

Now that HS2 has been approved, how will my right hon. Friend ensure, if necessary working with Ministers from other Departments, that costs are firmly controlled, so that all taxpayers nationwide, including in my constituency, through which this line unfortunately runs, can be confident that they have received value for money?

[Penny Mordaunt]

My hon. Friend makes a very valid point. Obviously, the DFT is leading on the delivery of HS2. The IPA will continue to work with the DFT to support the delivery of this initiative, through expert advice and challenge in independent assurance reviews. The recent review of and recommendations on HS2 are very focused on ensuring that costs are controlled and that there will be no further delays.

[Martyn Day (Linlithgow and East Falkirk) (SNP)]

14. What discussions he has had with the Secretary of State for International Trade on the introduction of import controls on goods from the EU from 2021.

--- Later in debate ---

[Rob Roberts (Delyn) (Con)]

20. What steps he is taking to ensure that Government suppliers and subcontractors are paid on time.

[The Paymaster General (Penny Mordaunt)]

The Government have a commitment to pay 90% of valid and undisputed invoices from small and medium-sized enterprises within five days. Departments also have a non-executive director responsible for prompt payment, and suppliers now risk being excluded from winning large Government contracts if they cannot demonstrate prompt payment in their supply chain.

[Rob Roberts]

I thank the Paymaster General for that answer. Following on from her responses to my hon. Friends’ questions earlier regarding small and medium-sized businesses, the cash flow of those businesses is the most important factor in their survival, so what assurances can my right hon. Friend give that the timely payment commitment will always extend further down the chain so that small and medium-sized businesses in my Delyn constituency are able to plan ahead with confidence?

[Penny Mordaunt]

I can give my hon. Friend those assurances: we do take those things into account. As far as the Cabinet Office is concerned—of course, it is similar for many other Departments across Government —we are meeting the five-day payment target, and in 99% of cases all invoices are paid within 30 days.

[Mr Speaker]

I call Rosie Duffield. Not here.

--- Later in debate ---

[Claire Coutinho (East Surrey) (Con)]

T6. I am very proud to be part of a party that is delivering on leaving the EU and that is investing billions in our health and education sectors. Will my right hon. Friend outline the steps that his Department is taking on public procurement to make sure that that money is spent wisely?

[The Paymaster General (Penny Mordaunt)]

I thank my hon. Friend for that excellent question. She will be aware that leaving the EU is a golden opportunity to reform our procurement rules. We must cut red tape. We must drive innovation and make it easier for small businesses to win those public sector contracts. We will achieve that by creating a bespoke system for British businesses that also complies with our international obligations.

[Pete Wishart (Perth and North Perthshire) (SNP)]

May I ask the Secretary of State, and explicitly him on this question, what role does Dominic Cummings have in the Cabinet Office, and will he outline his professional and personal relationship with him?

--- Later in debate ---

[Sir Desmond Swayne (New Forest West) (Con)]

Why does my right hon. Friend not prevent enterprises from bidding for Government contracts unless they can demonstrate a record of having paid their suppliers on time?

[Penny Mordaunt]

Companies do have to demonstrate that, and if existing suppliers do not comply with the targets we have set, they will be booted off the supplier list.

[Justin Madders (Ellesmere Port and Neston) (Lab)]

T9. This morning, I did a quick Google search—other search engines are available—for “Government jobs”, which came up with dozens of Government positions described as being inside IR35. That is the worst of both worlds, because an individual would be taxed as an employee but would have no employment rights. Does the Cabinet Office agree that that is an untenable state of affairs for people working for the Government?

--- Later in debate ---

[Mr David Jones (Clwyd West) (Con)]

Some Welsh companies wishing to bid for public contracts in Wales frequently find themselves unable to do so because of EU procurement requirements. Will my right hon. Friend confirm that procurement regulations will be changed post the implementation period to enable Welsh companies to bid for contracts in Wales?

[Penny Mordaunt]

My right hon. Friend is absolutely right. There are some big opportunities for us to change those procurement rules. I have already had conversations with the devolved nations, and I will visit them shortly to take forward and listen to the ideas of businesses so that we can ensure that the new rules and regimes reflect their needs.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

The Chancellor of the Duchy of Lancaster might want to be very careful with the answers he gives to the House about Mr Sabisky in relation to the defence and security review—a point raised by my hon. Friend the Member for Sefton Central (Bill Esterson) a moment ago—because he well knows that teams of civil servants have been working on that review for some time; it did not just start yesterday, when the Prime Minister announced it. Can he answer this question: did Mr Sabisky meet any of the officials working on the defence and security review—yes or no?