Small Businesses

Debate between Simon Burns and Anne Marie Morris

Thursday 28th November 2013 Commons Chamber

[Anne Marie Morris]

That is absolutely right.

We need to spread the broadband initiative and encourage Ministers—sooner rather than later—to look at the 4G market. One of biggest concerns of small businesses is that they cannot get mobile reception, which is critical to them.

I ask the Department for Communities and Local Government to work with the LEPs and get them to engage better with the smallest of businesses. Please could it also look at procurement? Although central Government have done a good job in trying to meet their obligation of giving 25% of contracts to SMEs, the picture in local government is rather less rosy.

The Department of Energy and Climate Change also has a part to play. The £90 million scheme for clean-tech entrepreneurs is a very good step. There is a green deal specifically for small businesses, with a pay-as-you-save scheme. However, more needs to be done, including help with switching suppliers. Businesses currently find themselves moved automatically on to new contracts on disadvantageous terms.

What more could UK Trade & Investment and the Foreign Office do? UKTI has done a really good job, but it needs to do more to help the smallest businesses, and there is a call for greater support at embassy level.

Let us not forget the Department for Environment, Food and Rural Affairs, which after all represents a fifth of our economy in the form of rural businesses.

[Mr Simon Burns (Chelmsford) (Con)]

Does my hon. Friend agree that, with the emphasis that the Government, driven by the Treasury, have placed on our embassies in the past three and a half years, UKTI is doing a fantastic job around the world through taking delegations, aided by Ministers, to push British exports? It is meeting with considerable success, because it has beefed up the quality and quantity of the people representing British industry and the Government around the world.

[Anne Marie Morris]

I agree entirely.

To return to DEFRA’s key role, a grant of £60 million has been set aside for the rural economy to enable businesses to look at opportunities in tourism and micro-enterprise. However, the Commission for Rural Communities has said that the Government need to consider future-proofing such businesses, particularly in relation to their peculiar needs for access to finance.

Finally, because I am conscious that many hon. Members want to speak, I call on the Cabinet Office to come up with a good definition of a small business. There has been a review in Europe, in relation to the Small Business Act for Europe, on how businesses are defined. It seems to me that European definitions have not been adopted across the UK. I am far from convinced that those definitions are right, but the term “SME” means very little to the average householder. Let us get a definition that is meaningful and relevant to the UK economy.