Family Businesses: Contribution to Local Communities

Wendy Morton Excerpts

Tuesday 20th December 2022 Westminster Hall

[John Stevenson]

Absolutely. It is always lovely to hear individual businesses being highlighted by Members of Parliament. That demonstrates that family businesses are not just in one constituency but spread across the whole country. We need to be behind them in our local communities as well as nationally.

From our perspective as Members of Parliament, the importance and contribution of family businesses should not be underestimated. They matter to our national economy. Family businesses employ nearly 14 million people; over 50% of all private sector employment is in family businesses, so the majority of people are employed by a family business. It is estimated that they account for 44% of our GDP. Just think of their contribution to the Treasury, which is vital for our public services.

Family businesses are clearly the backbone of local economies up and down the country as well as nationally. Think of a small family business and the contribution it makes to the Exchequer. If it employs five people, that means five families supported by that business. The contribution goes beyond that, with the payment of national insurance for those five employees, and of corporation tax. It will probably collect VAT for the Exchequer and pay business rates at the local level. It makes a vast contribution, not just to the local but to the national economy. That is replicated up and down the country.

Carlisle is a good example as the home of national and international businesses which employ a lot of people and make headlines locally because of the number they employ and their brand names, such as Nestlé and Pirelli. But drilling down, what matters in many respects is the local family businesses. Story Construction is a first-generation business now moving into the second generation, employing in the region of 500 people. It was set up in the last 30 to 40 years and makes a significant contribution to local construction and to the rail construction industry. Pioneer Foods, a food hospitality business, is into its third generation of making a contribution to Carlisle’s economy. Thomas Graham is in its fifth generation of local leadership.

We have those international brands and companies, but I have just highlighted three individual businesses at the heart of our local economy that employ a lot of people making a vital contribution. They are now into their second, third and fifth generations. The individuals who lead those businesses are also vital to our local communities. They provide leadership. They are often respected, and local people will look up to them and may aspire to be similar to them, and to set up their own businesses in due course.

[Wendy Morton (Aldridge-Brownhills) (Con)]

My hon. Friend mentions the contribution of small businesses to the local community. What I often see is something that is almost invisible. Does my hon. Friend agree that business owners often support community events, such as the recent Christmas tree festival in Aldridge?

[John Stevenson]

My right hon. Friend is getting ahead of me. She is absolutely right, and I will come to the contribution that such businesses make to local communities. There are, of course, similar factors for family businesses at the national and local level: the high employment levels in family businesses, the investment that we want to see, and the tax contribution that they make both locally and nationally, which I have already highlighted. I have set out what I think is a powerful demonstration of the importance of family businesses; however, some people would ask what the difference is between a family business and other corporations. Are they not in many respects just the same? I accept and recognise that they face many similar issues.

At present, energy costs are obviously affecting many businesses, both those that are family run and those that have other structures. It is a serious issue right now. On taxation rates, what corporation tax is set at matters to both family businesses and others, although dividend tax and capital gains tax can have a particular influence on family businesses, because of the way they structure themselves and the way the families take profits out of the business. Skills matter to any corporation, as does getting the right staff and ensuring that the right training is in place. That also matters to a family business, which needs to recruit in exactly the same way as any other. Regulation affects different sectors in different ways. I have already highlighted the importance of the food and drink sector, on which regulation clearly has a huge impact.

There are, however, a number of issues that in my view are unique to family businesses. The obvious one is succession. Passing the business on to the next generation, or indeed between families, can be a challenge. Who should inherit? Who takes over? Can the older generation let go and allow the next generation to take the reins of the business? If there are cousins, or two or three generations, involved, how is that dealt with? Those are some of the principal challenges for family businesses, and the Institute for Family Business spends quite a bit of time helping to support family businesses with them.

There are additional challenges with financing and growing family businesses. How do we ensure that a family business can grow in exactly the same way as other corporations? In my view, family businesses have a real strength, in that they can draw financial support from members of the family, which can help with that growth. It can also be a weakness, because they need to attract external finance to grow. Family businesses must be willing to accept outside help and allow external influences to support the business in its attempt to grow. Families have to accept the risk that they may be taken over, or that their influence in the business will be diluted by external investment from other parties.

Family businesses also have some key strengths, such as resilience. They often deal with recessions better than most other businesses. They are flexible and more adaptable in terms of hours of work. A person is more likely to want to work longer hours in their family business to ensure that it will cope with any bumps on the road. Family businesses also take the long view. It is not just about the next set of financial figures; it is about the next generation. That can lead to long-term investment, rather than a short-term view about making profits here and now. The stats suggest that often staff are loyal, and remain with such businesses for far longer than they would otherwise. Also, family businesses are invariably very loyal to their staff, who in many cases have worked for them for many years. That creates a real element of stability.

--- Later in debate ---

[Wendy Morton (Aldridge-Brownhills) (Con)]

I thank my hon. Friend the Member for Carlisle (John Stevenson) for bringing forward this debate. As he recognised in his opening speech, this debate is very timely. It is not often that we have debates on family business, and to do so at this time of year is a reminder of just how critical this time is for so many of those businesses.

I start by referring to my entry on the Register of Members’ Financial Interests. As many in this room will know, I have a background in family business. Prior to coming into this place—too many years ago to remember—my husband and I started a business with the enterprise allowance, when that was around, at £40 a week. Two things were critical in starting that business: one was the allowance, which, although it did not seem like a lot of money, meant a lot because we felt the Government were prepared to back us and the idea my husband had; the other, touching on the point made by the hon. Member for Strangford (Jim Shannon), was the importance of our relationship with the local bank. The relationship we had with our bank manager was absolutely 100%. If she had not been there, there were some days we would probably have struggled. She helped us to get through and see the light at the end of the tunnel. Although we often discuss banking and the role of banks in the community in this place, it is a reminder that the role of banks to businesses and the presence of a high-street branch and a named person that can be contacted really does make a difference.

Being back on the Back Benches, as the hon. Member for Strangford alluded to, I see an opportunity to make several points, but also to highlight some of the amazing family businesses across my constituency. Don’t worry, Mr Robertson; I am keeping an eye on the clock, and I will not take all of the time and will leave plenty of time for Front-Bench speakers. I want to mention some of those businesses because I want to further demonstrate the variety of small, family businesses not only in my constituency, but right across the country, and the way that they form the backbone of so many local economies. They make a massive contribution to the Exchequer, but also to our local communities.

Six years ago, I visited a business called Jennifer Ashe Funeral Directors that had just opened on Brownhills High Street. When I went back there this summer for a visit and tour, it was incredible to see how that business had grown over those six years. It is no longer just in Brownhills, but has many other locations. We talk about generations, and the next generation of the family is now involved as well.

We also talk a lot about high streets in this place. We talk about Small Business Saturday at the beginning of December, which is an opportunity for many of us to go out on to the high street and highlight local businesses and how important they are. I am reminded of another occasion, which is called Family Business Week; I see the Minister is nodding. Perhaps that is something we need to make more of and highlight in the same way to embrace what we have in our communities.

Our high streets have faced a difficult and challenging time, which started before covid. High-street businesses were hit throughout the pandemic as well, but many of them are now finding their feet again. In Aldridge, we have a fantastic florist—another family business—called Herbarium, which is run by Mike and Sue Soles. I walked past and popped my head round the door just last week. Christmas is a busy time for them, and it really matters that we go out and support our local businesses. I was equally pleased to see a florist called the Bloom Room open just a couple of weeks ago on Pelsall High Street. It is also run by a local lady who wants to invest in the local community and sees that the time is right to do that. I wish her all the best in her endeavours

The hospitality industry is another key part of this. As we heard from my hon. Friend the Member for Torbay (Kevin Foster), seaside resorts have lots of hospitality. However, hospitality is a sector with many examples of family-run businesses. The Fairlawns hotel, run by the Pette family—now on their second generation—was actually rated one of the top 25 family-run hotels in the country. I am also told that it was one of only six outside of London to make the Tripadvisor list. Again, that is another example of a fantastic family-run business.

As my hon. Friend the Member for Torbay started talking about fairgrounds, I thought it would be rather remiss of me not to almost go into competition with him by highlighting the breadth of family businesses across my constituency. Pat Collins Funfairs is a fascinating story because Pat Collins was a Liberal Member of Parliament and mayor of Walsall, but he is actually recognised and remembered more for Pat Collins Funfairs, which was founded in 1899.

The family business was established remarkably quickly and, within a decade, Pat Collins was a leading showman in the midlands, owning several steam-driven fairground rides. He also went on to be one of a group of showmen who met in Manchester to create the Showmen’s Guild of Great Britain. To this day, the business is still owned within the same family; it is owned by Anthony Harris and his family. Anthony is a Conservative local councillor on Walsall Council, and his father married one of Pat Collins’ granddaughters.

We can see how family businesses go down the generations. One reason for that is probably the way in which such businesses can focus on flexibility and resilience. They often do not need much support from Government or local councils, but they do need the space and the flexibility to grow and invest, and the right economic landscape for that.

I know from my own experience that someone with a small family business often does go that extra mile—not just them but their staff as well. People go that extra mile and put in that extra hour, because it is not just about thriving but sometimes just surviving to get through the difficult times and challenges and finding the opportunities and keeping on looking and moving forward.

My final namecheck for this morning must go to a local family-run business in High Heath. Harjit and Jodie Singh, known locally as H & Jodie, run what many would call a corner store, but it is much more than that. It is the Nisa Local, but they have set up a community hub there and have community days. Many of us will remember that this last summer was incredibly hot. It does not feel like it now—although perhaps it is in Westminster Hall—but if someone needed anything, the best place to go was often H & Jodie’s. If you could not find an electric fan anywhere in the locality, Mr Robertson, you could go to H & Jodie’s, where they would be stacked on the shelves. I give that example because it shows the flexibility and dynamism of small family businesses and how they really do go that extra mile by just getting on with the job.

I am a firm believer that a strong family-business base can really strengthen our communities. That builds up the local economy and then feeds into the national economy. Let us invest more in them. We talk a lot in this place about research and development, and about innovation. I completely get that. I also get the importance of Silicon Valley. We have manufacturers across Aldridge-Brownhills, including apprentice-supporting companies such as In-Comm, which invest in apprenticeships and developing skills for the future. However, we also need the small businesses. Not everybody will be a scientist or a researcher. We need manufacturers and family businesses. Let us recognise their importance, because as my hon. Friend the Member for Carlisle set out, there are 14 million people employed across the sector, and it produces 44% of GDP. We do not talk about it enough; we do not give it 44% of the airtime when we are talking about businesses.

I would like to see us talk up our family businesses, because they really can play a key part in growing the economy. If we grow the economy, we can invest in our public services; if we grow our family businesses, they can invest in their business and their skills base, and that is what creates the jobs of the future.

Oral Answers to Questions

Wendy Morton Excerpts

Tuesday 12th December 2017 Commons Chamber

[The Minister for Universities, Science, Research and Innovation (Joseph Johnson)]

UK participation in Horizon 2020 has held up remarkably well since June 2016. We remain one of the strongest performers across the EU system. As the hon. Lady will have seen, last Friday’s joint report between the Commission and the UK Government painted a very positive outlook for our continued participation in this valuable programme.

[Wendy Morton (Aldridge-Brownhills) (Con)]

T2. Given the importance of the automotive industry to the UK, and particularly to the west midlands, does the Secretary of State agree that it is essential to invest in test environments for self-driving cars to ensure that the UK can compete with other countries that want to become the world’s test bed for new vehicle technologies?

[Greg Clark]

I agree with my hon. Friend. That is one reason why we have established a series of test beds between London and the west midlands, including the motorsport cluster. They are already attracting huge interest from around the world, reinforcing our reputation in the field.

Student Loans Company

Wendy Morton Excerpts

Monday 20th November 2017 Commons Chamber

[Joseph Johnson]

I thank the hon. Gentleman for acknowledging the good work that the SLC does—it is important that we all recognise that. The sale of the student loan book is a policy that the previous Labour Government made possible following the passage of the Sale of Student Loans Act 2008, so there is considerable cross-party recognition of the importance of ensuring the sustainability of our public finances. The sale of the student loan book, which was made possible by the previous Labour Government, is something that this Government are quite prepared to continue.

[Wendy Morton (Aldridge-Brownhills) (Con)]

When we talk about student loans and access to university, we often quite rightly talk about disadvantaged students. Does my hon. Friend recognise that the current system has created opportunities for such students?

[Joseph Johnson]

My hon. Friend is right that the income-contingent student loan repayment system has made a huge expansion of access to higher education possible. I have referred to this statistic several times while speaking at the Dispatch Box: young people from disadvantaged backgrounds are 43% more likely to go to university or other higher education today than they were in 2009-10, which is a direct result of successive Governments deciding to share the cost of higher education equitably between students and the general taxpayer.

Oral Answers to Questions

Wendy Morton Excerpts

Tuesday 7th November 2017 Commons Chamber

[Greg Clark]

I would have thought that the hon. Gentleman would welcome the fact that jobs are being created in all parts of the United Kingdom and that we have the highest level of employment since records began. That is a signal of the success of the UK economy, but he is absolutely right that we want to make sure that every part of the United Kingdom reaches the height of prosperity it is capable of reaching, and through the industrial strategy we will have more to say about how we can propel that forward.

[Wendy Morton (Aldridge-Brownhills) (Con)]

T2. Businesses in my constituency and across the west midlands need the investment and the skills to continue to thrive and flourish. Will the Minister update me on the work the Government are doing in that regard?

[The Minister for Universities, Science, Research and Innovation (Joseph Johnson)]

We are investing in a world-class technical education system, growing apprenticeships and introducing T-levels from 2020 for 16 to 19-year-olds, backed by a further £500 million per year. We are also investing £170 million to create institutes of technology across all regions and £80 million for specialist national colleges to deliver higher-level technical education.

Parental Bereavement (Leave and Pay) Bill

Wendy Morton Excerpts

2nd reading: House of Commons
Friday 20th October 2017 Commons Chamber

[Kevin Hollinrake]

My hon. Friend makes a good point. The key to the Bill is that it retains that flexibility. There should be a discussion and negotiation, and the employer should provide the employee with support in order to help that person to decide what is best for them. It may be that the leave is taken later, rather than straightaway. People have different needs when dealing with their loss, as they do so in different ways and at different times.

The Bill also deals with paid leave. Leave will be paid, as a minimum, at the statutory rate—currently £140.98 a week or 90% of average weekly earnings where that is lower—for those who have fulfilled the qualifying period of 26 weeks’ service with the same employer the week before the date of their child’s passing away.

[Wendy Morton (Aldridge-Brownhills) (Con)]

I congratulate my hon. Friends the Members for Thirsk and Malton (Kevin Hollinrake) and for Colchester (Will Quince) on all their work on the Bill. I wish it well. I have just one question. Will these rights also cover adoptive parents?

[Kevin Hollinrake]

My hon. Friend makes a good point. We have left some details out of the Bill to allow more time for consultation on topics just like that one. Clearly the legislation cannot just be about biological parents. Adoptive parents should get the same benefits that the Bill provides. There are other such circumstances to discuss, so we want the maximum possible opportunity for consultation and submission of evidence, and for debate on these matters so that we ensure that we get the Bill right.

Leave will be paid at the statutory rate for those who fulfil the qualifying period of 26 weeks’ service the week before the child’s passing away. The Bill allows the rate to be set in regulations so that it can be uprated regularly in the normal way, but that is the level at which I envisage the rate will be set. That mirrors existing family leave and pay provisions, such as paternity leave, shared parental leave, adoption leave, and maternity leave after the first six weeks. That strikes a fair balance between the rights of the employee and a workable framework for the employer, but it is clearly the minimum we would expect the employer to provide.

My hon. Friend the Member for Beckenham (Bob Stewart) talked about flexibility, and that is my next point. It is widely recognised that grief affects people in different ways and at different times, and that there are no set rules for how and when to grieve. A level of flexibility over when to take this leave will allow an employee to take it at a time that best suits them, within a fixed period following the bereavement.

Hon. Members will have different opinions about how long that period should be, and there is clearly a balance to be struck between the individual needs of a bereaved employee and the employer’s need for a level of certainty around absences from work so that they can manage those effectively. With that in mind, the Bill provides for the window to be set in regulations, with a minimum of eight weeks within which these two weeks of leave must be taken.

--- Later in debate ---

[Wendy Morton (Aldridge-Brownhills) (Con)]

I support the Bill and congratulate my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake) on it. It is worth our remembering how successful he has been with private Members’ Bills. Last year, I believe, he succeeded in introducing “Claudia’s law”. I should like to think that this very special Bill is in extremely safe hands, and I note the support that it has been given so far today by Members on both sides of the House. I sincerely wish it well, and hope that it proceeds through both Houses as quickly as possible.

I also congratulate my hon. Friend the Member for Colchester (Will Quince), who is not in the Chamber at the moment. I know how hard he—and other Members—has worked to raise awareness of this sensitive issue. When I think back to my first days as a Member of Parliament, I recall an Adjournment debate about baby loss that took place late one summer’s evening. I was not in the Chamber, but I read the report of the debate in Hansard, and I know that it was very emotive and very well received. Perhaps some of the work that has led to today’s debate stems from it. As has already been mentioned, there was also a ten-minute rule Bill on the subject last year.

I am pleased to note that the Government were listening, as was evident from our manifesto—and I must acknowledge that the issue was included in the Labour manifesto as well. This is also an indication that it is possible to sit on the Back Benches and, if I may borrow a phrase from my hon. Friend the Member for Colchester, make a difference. Perhaps I am being presumptuous, because the Bill has not yet made it to Royal Assent, but I am sure we are all pretty certain that it stands a very good chance of doing so.

My hon. Friend the Member for Rochester and Strood (Kelly Tolhurst) spoke of visits to her surgeries. I recall a visit to one of my first surgeries by a father who had tragically lost twins. That was a difficult case for me to deal with, as I had never come across such a situation before. There is sometimes a harsh reality check when Members of Parliament start to understand the breadth of the topics that people raise in the privacy of surgeries as they relate their personal experiences.

I followed the work of the all-party parliamentary group on baby loss because of that constituent in particular. I have been pleased to hear about Baby Loss Awareness Week, debates in this place and the work of the APPG. I also welcome news of the bereavement care pathway, which I hope and sincerely believe will soon start to make a difference to some of those parents.

The other thing that today has shown is that, although we so often have heated debates in this place and are clearly divided in our opinions, there are occasions when Parliament comes together. Today’s debate must surely be an example of Parliament at its best, following on, as it does, from the earlier debate on emergency workers.

I want to close with a couple of words about the Bill. I raised the point about adoptive parents because I was genuinely uncertain whether they would be covered, so I am pleased that my hon. Friend the Member for Thirsk and Malton could give some clarity about that.

Clearly, a lot of work has gone into getting the Bill to this stage. There will be a lot more consultation and work to ensure we get it right, so that it helps those whom we want it to help. It will go a long way to addressing a lot of the vagaries and uncertainties that exist. It is now time that we provided some clarity on those vagaries and uncertainties, which exist for the parents, but also sometimes for employers. I speak from a small business background. Often, people are so focused on running their business that when these situations arise that they have never come across—it never happened in our business—some guidelines and, now, this legislation would be a tremendous boost.

I welcome today’s debate, I welcome the Bill and I wish it every success.

International Investment

Wendy Morton Excerpts

Tuesday 17th October 2017 Commons Chamber

[Greg Clark]

My hon. Friends in the Treasury are, as the House knows, active and vigorous in pursuing measures against money laundering, and that approach is an important part of this regime’s reputation for applying high standards.

[Wendy Morton (Aldridge-Brownhills) (Con)]

I welcome the Secretary of State’s statement and his recognition of the importance of not only large strategic businesses, but the supply chain. Does he agree that it is vital that the rules for the scrutiny of foreign investment are clear, certain and proportionate?

[Greg Clark]

That is exactly what is proposed in the Green Paper. The focus is on national security, which is an important responsibility for the Government. It is important that investors and businesses know the procedures so that they can have the greatest certainty when conducting business, including when contemplating takeovers.

Nuclear Safeguards Bill

Wendy Morton Excerpts

2nd reading: House of Commons
Monday 16th October 2017 Commons Chamber

[Wendy Morton (Aldridge-Brownhills) (Con)]

I may be the last speaker before the wind-ups, but it is none the less a pleasure to contribute to this debate and to follow the eloquent speeches and learned contributions that we have heard. In particular, my hon. Friend the Member for Wells (James Heappey) spoke with such knowledge of the nuclear industry—far more than many of us.

This afternoon has demonstrated the importance of the nuclear industry, which we should not underestimate in our deliberations. Not only is it important to the UK economy, to jobs and the local supply chain and to our nation’s security, but at its heart is the security of the UK’s energy supplies. As we have heard, the UK’s first commercial nuclear power station opened back in 1956. Today, 15 reactors generate a not insignificant 21% of our electricity, so nuclear is a vital source of energy in the UK. Aside from power stations, the civilian uses of nuclear materials extend to medicine, farming, transport and other industrial processes. Nuclear is a key strategic industry that affects us all, including each and every one of my constituents. This Government’s commitment to electric vehicles means that nuclear will have a further strategic importance in the UK. As someone whose household has recently purchased its first electric vehicle, we have an added interest in this field, including in making note of where the UK’s charging points are and are not.

However, this is a serious, specific debate about safeguards. It is not, as we have heard, about safety. The Bill was first announced in the Queen’s Speech to establish a UK nuclear safeguards regime as we leave the EU and Euratom, ensuring that the UK continues to meet international standards for nuclear safeguards while—this is important—continuing the UK’s reputation as a responsible nuclear state.

In this place we are understandably focused on Brexit. We are ensuring that we get the best deal for our country in the withdrawal process, and the Bill is a key part of that process. We often talk about the need to maintain stability and avoid the cliff edge we hear about as we exit the EU, and this is a prime example of legislation that is about preparedness and doing the ground work in readiness for when we leave the EU.

The Government have made it clear that future safeguard arrangements will continue to provide the safety, quality and robustness that currently exist under Euratom. The Secretary of State set out clearly that the EU and Euratom are uniquely legally joined, to which some Opposition Members take exception, and it means that when we formally notified the EU of our intention to leave, we also commenced the process of leaving Euratom.

Put simply, this contingency Bill is intrinsically and uniquely linked to the result of the referendum on 23 June 2016. I will be voting for the Bill this evening. My constituents and the country voted in the referendum, and we voted to leave the EU. The Bill will help ensure that the UK remains committed to having nuclear safeguards by enabling the UK to set up a domestic safeguard regime so that we continue to meet international safeguard and nuclear non-proliferation standards.

As my hon. Friend the Member for Spelthorne (Kwasi Kwarteng) said, this is a responsible Bill from a responsible Government who are delivering a responsible Brexit.

Energy Price Cap

Wendy Morton Excerpts

Monday 3rd July 2017 Commons Chamber

[Greg Clark]

I am not sure that I would give them the excuse of exchange rate movements. The Competition and Markets Authority has said that suppliers have unilateral market power over this part of their customer base. This is a regulated market. Ofgem has the powers to introduce and extend the price gap, and my view is that it should use those powers now.

[Wendy Morton (Aldridge-Brownhills) (Con)]

Going back to switching, does the Secretary of State think that more needs to be done to make it much easier to switch, particularly for our more vulnerable constituents?

[Greg Clark]

I agree with my hon. Friend. While there should certainly not be barriers in the way, it also should not be necessary for people to spend every evening on the internet checking whether their bill has gone up by an outrageous margin. If people are loyal to a brand, it is not unreasonable for them to expect to be treated reasonably, especially as that brand may be a trusted brand. The regulator should enforce that.