Business Confidence

Robin Swann Excerpts

Tuesday 15th October 2024 Westminster Hall

[Robin Swann (South Antrim) (UUP)]

Thank you for that direction, Mrs Harris; I will follow it directly. I want to focus solely on a small part of business confidence: the confidence of businesses across the United Kingdom in the UK’s internal market. As the hon. Member for Strangford (Jim Shannon) and the mover of the motion, the hon. Member for East Grinstead and Uckfield (Mims Davies), said, small and medium businesses are the backbone of our communities, and nowhere more so in Northern Ireland than in my constituency of South Antrim. We have a real challenge at the minute with the outworkings of the Windsor framework and how our small businesses can sell to, and purchase parts and other things they want to sell on from, the rest of the UK. They are having difficulty getting parts to sell and selling across the Irish sea.

Prior to this debate being called a small business wrote to me, which is why I thought it would be useful to come here. To survive, that small business went to online selling through Amazon. It was looking for some advice on what will happen after 13 December, when the EU’s general product safety regulation, which will apply to those selling online from Northern Ireland, will kick off. It said:

“As an online business this is starting to do us a lot of harm already. Places like Amazon where we do most of our business are making us do compliance reports for every item and we probably have over 60k items that have to be done one at a time.”

The GPSR is adding additional bureaucracy and cost to those small businesses to such an extent that suppliers are saying that they will no longer post to Northern Ireland, completely destroying business confidence across what should be our United Kingdom. I am meeting an English company later this week that tells me it wants to supply Northern Ireland, but, because of the introduction of the EU’s GPSR, it will look to cease trading into Northern Ireland. The GPSR comes into effect on 13 December: that is three weeks prior to the Christmas and new year sales, a crucial time for small businesses that rely on online sales.

Two bodies were recently created and announced by the Secretary of State for Northern Ireland: Intertrade UK and the Windsor framework independent monitoring panel. We thought that they could answer our questions and queries, but I have asked the Northern Ireland Office and we are still waiting for them to be appointed or established. All the while, the clock is ticking down on what our consumers, suppliers and sellers in Northern Ireland want to achieve. I hope the Minister can provide reassurance or guidance on that today, because I have asked the Department for Business and Trade and the Northern Ireland Office and still I can give no reassurance or guidance to the small and medium-sized companies in Northern Ireland who want it.

The hon. Member for East Grinstead and Uckfield referred to the international investment summit and the announcement of £63 billion of investment. I appreciate that she talked about double funding and the double announcement. I would have been happy if it had been indicated that any of that was coming to Northern Ireland. From what I see in the announcement that was made, England gets a fair share, Wales gets some and Scotland gets some, but nothing is coming to Northern Ireland. We would welcome any of the £63 billion or 38,000 jobs that were announced.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)]

I too take the opportunity in the usual way to thank the hon. Member for East Grinstead and Uckfield (Mims Davies) for securing this important debate. At the outset, let me echo her thanks to businesses across the country for the wealth they create, the better communities they help promote and, crucially, the good jobs they offer. I do not know where her “Taste of East Grinstead” event is taking place, but if it is in the House, I will happily come along if I can. If not, I would be happy to hear from her separately about the particular businesses that turn up to that event.

As a number of interventions from hon. Members have made clear, small businesses, in particular, are the backbone of our economy. I feel particularly privileged to be the Minister for Small Businesses and to hear some of the remarkable stories about how those small businesses came into being and the successes they have had in each of our communities. That is why I am pleased that we have been making progress in government on following through on the commitments we made in opposition in our nine-point plan to back small businesses. If time allows, I hope to touch on some of those points.

I welcome the support of all hon. Members who have spoken for their business communities, even if I did not quite agree with the tone of all their remarks. All of us need the businesses in our communities to succeed, and it is great to hear so many Opposition and Government Members wanting to back them to succeed.

The Prime Minister could not have been any clearer about this Government’s guiding mission: we will go for growth at every opportunity. Growth and backing business is the surest path to prosperity and to improving the living standards of working people. We have made it clear that our goal is to deliver the highest sustained growth in the G7, more secure jobs, better wages and, as a result, much greater funding for our public services, including our brilliant NHS. It surely goes without saying that investment is key to driving that growth.

I gently say to Conservative Members that the problem is that the Administrations of the past 14 years sadly starved our economy of the investment it needed. Whether it is the fall-out from the poor-quality deal the Conservatives negotiated with the European Union after the Brexit referendum, the revolving door of Prime Ministers— I think every Conservative Member here backed Liz Truss’s disastrous mini-Budget—the seven separate growth strategies since 2010 or the 11 different Business Secretaries in as many years, I say to Opposition Members that all of that might help to explain why they lost the confidence of business at the last general election.

If Opposition Members are not convinced by that, I would underline that there was also no plan to help small businesses grow, export or get into new markets. Support in that area was cut back and, in some cases, axed completely. There was no delivery on repeated promises to comprehensively reform business rates and no serious plan to tackle the scourge of late payments, which many small businesses face at the moment. Vital infrastructure projects that were fundamental to growth in many communities were cancelled, sensible measures to open up opportunities for investment in green energy projects were blocked, there was no obvious plan to back the high street—a point made by the hon. Member for South Basildon and East Thurrock (James McMurdock) —and, in particular, there was no serious plan to tackle retail crime going forward.

The result is that British firms have not felt that investing domestically was an attractive enough proposition. There has been much reluctance to adopt new technology, to upskill employees or to plough money into research and development. Sadly, that is why the UK has sat right at the bottom of global rankings for business investment for quite some time—27th out of 30 in the OECD last year, behind Mexico, Slovenia and the Slovak Republic.

[Robin Swann]

I thank the Minister for that point, which goes back to my contribution. This is about seeing what the Government can do in the next few weeks to give small businesses in my community in South Antrim the assurance they need to continue their online presence and sell into the UK.

[Gareth Thomas]

I thank the hon. Member for his earlier remarks and his intervention. Let me be clear that my Department will continue to work with local partners in Northern Ireland, including InterTradeIreland, to develop and deliver our trade and industrial strategies. If the hon. Member wants to speak to me, I would be happy to help the small businesses that have written to him to join up with the support available in Northern Ireland.

Members across the House will be pleased that there is good news on growth. I welcome the generous support of the hon. Member for East Grinstead and Uckfield for the work done yesterday at the international investment summit and in the run-up to it. A raft of measures were announced to help boost business confidence going forward and to spur growth, and I will recap on some of them. We are determined to make it simpler for companies to relocate to the UK through a new corporate re-domiciliation regime, which I am sure will strengthen our position as a global business hub. We have announced a business-boosting lift to the thresholds on company sizes, which means we will have new legislation by the end of the year reducing the burdens on start-ups and SMEs, saving them nearly a quarter of a billion pounds. We will be consulting next year on our ambitious modernisation programme for the UK’s entire non-financial reporting regime. We are seeking to make shareholder communication easier, and we are clarifying the law on virtual annual general meetings.

Those improvements, helping to reduce red tape, could be worth up to £16 billion a year to investment going forward. As a result of the pro-innovation, pro-business, pro-wealth creation policies we are pursuing, big-hitting global businesses are confidently investing in the UK. The total investment pledged by international and British firms, both in the run-up to and during the summit yesterday, now stands at an estimated £63 billion, which will help ensure that 38,000 jobs are created. I would gently suggest that that is a resounding vote of confidence in both the UK’s economy and the Government’s growth mission.