Oral Answers to Questions

Debate between Stephen Kerr and Kit Malthouse

Monday 2nd July 2018 Commons Chamber

[Kit Malthouse]

As my right hon. Friend the Secretary of State said earlier, the close and constructive relationship between work coaches and their clients should enable them as a team to get through any hardship that arises. The hon. Lady is attempting to build a career on bashing universal credit, but she never does so in context. We have chosen to fight poverty in a different way. We have chosen to fight it with work rather than with welfare. She never points out that, under the last Labour Government, the number of households where no one worked almost doubled.

[Stephen Kerr (Stirling) (Con)]

Earlier on, the Minister for Disabled People, Health and Work, my hon. Friend the Member for Truro and Falmouth (Sarah Newton), mentioned scaremongering by the Opposition. I can confirm that that scaremongering causes grave anxiety among my constituents. Will the Minister confirm that, for example, an advance payment does not involve rates of interest and that it is reimbursed by deductions made over a period of months?

[Kit Malthouse]

My hon. Friend is exactly right. I was pleased to be able to sit with him in a meeting with some of his third sector organisations, including his local food bank, his citizens advice bureau and his local refuge, to try to scotch some of the mythology that has been created around universal credit. Wherever universal credit has been in place for some time, it receives universal praise from work coaches on the frontline and very high satisfaction levels from the people who are using it.

Finance (No. 2) Bill

Debate between Stephen Kerr and Kit Malthouse

2nd reading: House of Commons
Monday 11th December 2017 Commons Chamber

[Stephen Kerr (Stirling) (Con)]

Does my hon. Friend think that the banks’ lack of willingness to lend to small and medium-sized businesses—there are several in my constituency that suffer from chronic lack of availability of capital from banks—is killing the nursery of burgeoning businesses that we need in this country?

[Kit Malthouse]

Small-ticket debt definitely has its place in starting businesses, but they need—the Government are trying to propel this into the economy—patient capital: money that will be invested and sit as a shareholder in the company for some years. In truth, while it is wonderful to build a company like Instagram—I think it was built in 14 months, went from zero to a valuation of more than $1 billion and then was sold—such things happen rarely. Most businesses are built over a much longer period, often over many generations. That is why, certainly in my youth, all those businesses had family names—Marks and Spencer, Reckitt Benckiser. They were family businesses that had come together over two, three, four or five generations to take on the world. We need to create an atmosphere in which people do exactly that—invest for the long term.

I hope that Ministers will monitor the scheme carefully and, if we are not getting the kind of capital flowing through that we need, we can tweak it. If we see an overall reduction, as we may, as capital that was previously going into protection schemes now does not immediately transfer to risky schemes, we might need to look at this on an emergency basis.

My second, related point is on the general availability of shares and assets. The Government are doing a lot in the Bill to help the housing market and have rightly identified that home ownership has fallen relatively significantly over the last few years. They should be commended for the action that they are taking, certainly with regard to young people, but housing is not the only asset class available. The solution to the housing market will be a long-term one. We are trying to build as many houses as we possibly can—we need 250,000 to 300,000 houses a year to bridge the demand and supply problem—but that will take some time to do. It is possible, however, to get assets into the hands of people, particularly young people, much sooner than that, through employee share ownership plans.

I have said before in the House that it is my view that as well as creating a pool of dynamic private capital, we must democratise capital. That means spreading the ownership of British business as far and wide as we can. I urge the Government, as part of the patient capital review, to look at how they can improve the employee share ownership options for companies, to make it easier and even favourable through the tax system for employees to be gifted shares in their businesses. We know that employees who own part of their business are much more productive, and companies that have employees as shareholders are much more stable and tend to be much more successful in the longer term. It creates a much better environment and relationship between management and the employed. Just ask the postal worker wandering up the front path to deliver Christmas cards what the price is of their shares; I bet that they can tell you, with a big, broad grin. British Steel recently rewarded its workers for the company’s turnaround by giving away 5% or 10% of the equity in the business to them. The way forward is for everybody, young and old, to participate in the balance sheet of UK plc.

Finance Bill

Debate between Stephen Kerr and Kit Malthouse

Tuesday 12th September 2017 Commons Chamber

[Stephen Kerr (Stirling) (Con)]

There should be a relationship between risk and reward, should there not? It is a delicate balance. What is my hon. Friend’s view on whether the balance is right in the measures before us?

[Kit Malthouse]

I was about to come to that. The rise in taxation on dividend says something about how we treat the proceeds of risk. The argument has always been that dividends should be taxed less than income to recognise that risk. More times than not, if someone invests in a company, they lose their money. In some spheres, such as life sciences—a specialist area of mine—nine times out of 10 they lose their money. If someone invests in a drug discovery company, it is quasi-charitable giving—nine times out of time, they are giving to the economy for the good of their health, hopefully. The notion that dividends should be taxed just like every other income starts to erode the idea that as a Government and a society we want to reward risk taking.

In future Budgets, I hope that Chancellors will find a way to re-instil the sense in ordinary working people that they should think about starting and building their own business. Sadly, over the last couple of years, the number of people contemplating starting their own business has dropped. A couple of years ago, it was about 39% to 40%; according to the latest survey, it is now only about 14%, and the single largest barrier that puts them off is access to capital—the ability to get the money to start a business.