Business Confidence

Sarah Gibson Excerpts

Tuesday 15th October 2024 Westminster Hall

[Sarah Gibson (Chippenham) (LD)]

It is a pleasure to serve under your chairmanship, Mrs Harris, and to speak on behalf of the Liberal Democrats as their business spokesperson for the first time—I hope hon. Members will be nice to me.

I congratulate the hon. Member for East Grinstead and Uckfield (Mims Davies) on securing the debate. I share her concerns about the high street, retailers and microbusinesses—like her, I have many in my constituency. I welcome the international investment summit and the Government’s industrial strategy, which will give businesses certainty and incentivise them to invest in new technologies, grow the economy, create jobs and tackle the climate crisis. However, page 5 of the strategy makes it clear that the Government will focus on urban areas; there seems to be no strategy for growing the rural economy. The Government say that they will devolve significant powers to the mayoral combined authorities, but I must ask the Minister what their plans are for areas of rural England that are outside metro mayoral authorities, such as my constituency of Chippenham.

A recent report by the Department for Environment, Food and Rural Affairs stated that about 14% of manufacturing happens in rural locations, and a considerable amount of that is significant to those regional economies. Many of those small and medium-sized enterprises specialise in areas such as food processing and equipment manufacturing, a lot of which comes from the diversification of farming families. Rural areas are at the forefront of the UK’s renewable energy production: 70% of wind energy, and a lot of solar energy, is produced in rural areas. Chippenham has a large number of rural solar farms, which are important, up-and-coming local businesses.

Planning takes twice as long in the UK as it takes most of our EU friends and neighbours, which is a barrier to investment. I share hon. Members’ concerns about planning delays for farming families trying to diversify; our complicated planning structure creates unnecessary cost for lots of small businesses in rural areas. Dave Ricks of drug manufacturer Eli Lilly stated that planning processes are an “impediment” to opening businesses in the UK, unlike in the US, Ireland and Norway. Johnson Matthey, which manufactures hydrogen fuel cells in my constituency and is the UK’s biggest investor in research and development in that area, said that it is really concerned that we will lose out to China, just as we did with battery technology, if we do not support infrastructure for hydrogen networks—it too faces planning delays. A recent DEFRA report highlights that 18% of rural businesses cite poor infrastructure, particularly digital and transport networks, as a significant barrier to growth. Again, the rural infrastructure simply is not there.

I am sure that many Members agree that, although the Conservative Government failed business and workers on stability over the last few years, the need for stability could never be stronger. If we expect businesses to commit to promoting skills, equality and good governance, and to supporting their local communities, we need to create a stable business environment, with smart regulation and investment in infrastructure, research and innovation.

Like the hon. Member for Meriden and Solihull East (Saqib Bhatti), I ask the Minister to take SMEs seriously given their importance to our rural economy. A serious issue that has come up time and again in my constituency is unfair tax hikes, especially hikes to business rates. I share the hon. Member’s concern about national insurance rises for small businesses, and especially for employers. I share the pain expressed by the hon. Member for South Antrim (Robin Swann) about the red tape suffered by businesses in Northern Ireland; businesses in my constituency that export to the EU are suffering from similar red tape, and my hon. Friend the Member for Wokingham (Clive Jones) expressed his concern on behalf of small businesses doing the same in his constituency.