Policy for Growth

Richard Fuller Excerpts

Thursday 11th November 2010 Commons Chamber

[Richard Fuller (Bedford) (Con)]

I am fortunate enough to have studied at a business school to get an MBA. I do not know whether that qualifies or disqualifies me from—[Interruption.] I thank hon. Members for that comment, but I will nevertheless persevere, because I shall be relying not on what I learned at business school but on advice from my barber—the man who cuts my hair. I may not be—[Interruption.] Thank you very much. I may not be a good advert for his skills, but Sugaz on Lime street in Bedford is an excellent establishment.

My barber mentions a couple of things to me every time I go for a haircut. The first is the importance of getting people off benefits and into work, and I know he will be absolutely delighted at the statement earlier today by the Secretary of State for Work and Pensions. The second thing my barber tells me about—he often waves bits of paper in front of me to make this point—is the terrible impact regulation has on his business. I must say to the Minister of State, Department for Business, Innovation and Skills, my hon. Friend the Member for Hertford and Stortford (Mr Prisk), that the small businesses that I talk to are delighted that he is in his post and they are pleased with many of the initiatives he has already taken, but he needs to do more on the issue of regulation. He needs to acquire the reputation of being the Minister who will not rest until he has got the regulatory burden off our small businesses.

I want to make a few suggestions to my hon. Friend the Minister. The first follows on from points made by other Members. The hon. Member for Brighton, Pavilion (Caroline Lucas) said that there is now a wider understanding of well-being and what it means for growth, and my hon. Friend the Member for Warwick and Leamington (Chris White) pointed out that entrepreneurs are driven by various different motivations, not just profit making. When the Minister thinks about how we understand growth, he should be dextrous on the issue of motivation.

The Minister should be dextrous about something else, too. I want this Government to take away the fear of failure from people who start businesses. If we can accomplish that, we will achieve growth. I also urge the Minister not to listen too much to Opposition Members’ comments on how to achieve growth. In my town of Bedford, the average wage in 2002 was £24,899, but in 2009 it had fallen by £1,458 to £23,431, and unemployment is 28% above the national average. I therefore suggest that the Minister keeps his own counsel, and that he should not listen to the counsel of Opposition Members.

Thirdly, I ask the Minister to cut taxes on business. That is not only a priority; it is a necessity if we are to have long-term growth. Fourthly, as my hon. Friend the Member for Battersea (Jane Ellison) said, let us not hear any more bashing of financial services. They create millions of jobs and they pay billions of pounds in taxes. They are our part of the global economy, and we should be nurturing and considerably strengthening them.

May I also make two practical points? In respect of the Minister’s proposals for enterprise capital funds and angel investors, I ask him to consider dispersal across the country. There are currently nine such funds, but six of them are based in London. Will he consider promoting community funds that are dispersed more widely around the country and relaxing the investment track record criteria for setting up funds? Finally, I ask the Minister to consider the ways in which ECFs will work with regional growth funds, as we must not repeat the regional issue we had with the national insurance holiday. Bedford’s growth is in the south-east; we need this benefit from the regional growth fund. Please make sure we get it.