Jobcentres and the DWP Estate

Debate between Ronnie Cowan and Hannah Bardell

Thursday 20th July 2017 Westminster Hall

[Ronnie Cowan]

The hon. Lady is absolutely correct. It is the classic double whammy that people are put into an impossible situation by the Government and then look for support from them and find that it has been taken away. As we all know, the apprenticeship scheme is just an aberration at the moment.

Unfortunately, all levels of poverty are rising. In-work poverty is on the rise, yet the Minister continues to argue that jobcentre mergers are needed to ensure that the welfare state

“works for those who need it and those who pay for it.”

That kind of irresponsible language detracts from the reality that those who need the service and those who pay for it are in fact the same people. Ultimately, the whole of society benefits if poverty and inequality are reduced. Jobcentres are supposed to be part of the solution.

Aside from the £1 billion deal with the Democratic Unionist party, the UK Government have made the case over the past seven years that drastic public spending cuts are a financial necessity. The plan to close jobcentres across the UK is part of a wider plan to sell £4.5 billion-worth of Government land and property by 2021. While it is easy to cut services and demonstrate savings made in the short term, it is not so easy to quantify and predict the long-term impact of those changes.

[Hannah Bardell]

On the matter of property and quantifying decisions, does my hon. Friend agree that the decision to close an HMRC office in my Livingston constituency and an area of West Lothian that is significantly cheaper, and to move it to Edinburgh city centre in a record long-term contract of 20 to 25 years, is just sheer stupidity on the Government’s part and clearly a waste of public money?

[Ronnie Cowan]

I absolutely agree, and could not have put it better myself.

The UK Government have simply not made a convincing case that the proposed closures will benefit clients or society as a whole. Jobcentre staff have contacted me to say that the impact of the closures on disabled people has not been properly assessed. The Scottish Government have indicated that the closures are likely to push many vulnerable people into crisis. Will the Minister meet me in Inverclyde and show that the UK Government are actually listening to those concerns? We are about to set off into recess. I assure the Minister that I will clear my diary and cancel my holidays, and will be there whatever day he wishes to come and visit Inverclyde.

Small Business Saturday

Debate between Ronnie Cowan and Hannah Bardell

Tuesday 1st December 2015 Westminster Hall

[Ronnie Cowan]

I thank the hon. Lady for her point.

One business in my constituency that is contributing to the success is the Pirate and Bluebelle, a gallery operated by Heather McCulloch and Nick Summers. It is a small business in the very literal sense of the word. Their shop is just 2 metres by 4 metres and is one of the smallest galleries in Scotland, if not the UK. Heather and Nick established the business in order to sell artistic photographic prints and by doing so they are now supporting a number of emerging local artists and crafters. Like many small business owners, Heather and Nick are self-motivated, have been prepared to take risks and are driven by a desire to benefit not only themselves, but their local community. In the words of Heather herself:

“We feel that the rewards far outweigh the cash.”

I hope other Members today will join me in commending Heather and Nick’s community spirit in creating a successful small business. Their experiences should be noted by policy makers in this Parliament and elsewhere. For example, Heather and Nick are concerned that the business registration process was difficult to understand and noted that the guidance on what was expected of them on tax and national insurance contributions could have been more clearly stated. Furthermore, Heather and Nick feel that the personalised support from Business Gateway made a positive contribution to the establishment of their gallery. An adviser has been available to answer questions specific to their circumstances and that specialised knowledge has assisted in developing the business in its first year of operation. I would echo that sentiment as I ran my own small IT business for 12 years and the burden of the paperwork required by Her Majesty’s Revenue and Customs distracted from the enjoyment of being self-employed.

The UK has an annual business death rate of 10% and the Pirate and Bluebelle is an example of why pre-planning is so important. Heather and Nick tested the market by attending local fairs and measuring the reception of their product with customers. They followed that up by securing premises on a shopping strip suitable for a small independent retailer and the type of products they wanted to sell. Many businesses fail within the first five years, and it is vital that potential business owners undertake the necessary preparation before fully committing.

[Hannah Bardell (Livingston) (SNP)]

I congratulate my hon. Friend on securing such an important debate ahead of Small Business Saturday. Does he agree that it is important to encourage more women to start their own businesses, as they often fail sooner than their male counterparts? As the world of work changes, we must ensure that businesses such as Decadently Pure in my constituency, which is run by Ros Milligan who recently won a West Lothian chamber of commerce award, are able to develop and flourish.

[Ronnie Cowan]

I would not for one minute believe that women were more likely to fail at small business than men—certainly that is not my experience in my community, where many of the businesses are run by strong, vibrant and intelligent women. I am surprised to hear that. Despite the challenges, long hours and potential risks of running a small business, Heather is optimistic about her future operating an independent business in Inverclyde. She said:

“Setting up and running a small business has been one of the most challenging things we have ever done but also the most rewarding.”

I am aware that a range of support is already available to small businesses such as the Pirate and Bluebelle—I should point out that Inverclyde and, indeed, Gourock have many other good small businesses dealing in fine art. Assisting SMEs must be a collaborative effort across different tiers of government and various other organisations. In Inverclyde small businesses have access to a variety of support, including from Inverclyde Council, the Scottish Government, Riverside Inverclyde, Skills Development Scotland, Business Gateway and Scottish Enterprise.

At local authority level, businesses in my constituency have access to grants that assist with capital expenditure, staff training and structural improvements to business premises. Inverclyde Council provides a small business loan scheme to improve the small business start-up rate. A west of Scotland loan fund is also available, providing loans of up to £100,000 for established businesses operating for more than two years, while newer businesses may borrow up to £30,000 through the same fund.

Such schemes emerged in response to the small business concern of finding credit increasingly difficult to secure. Another local organisation, Riverside Inverclyde, has complemented the work of Inverclyde Council to tailor solutions specific to my constituency. It has promoted the establishment of small businesses by providing quality office space, which is an important task, because Greenock, formerly a town of heavy industry, did not have enough office space suitable for a modern, digitally connected business. In establishing or refurbishing six offices and business centres, Riverside Inverclyde has helped to secure more than 850 jobs.