Found: the challenges of the Covid crisis has dramatically altered the fundamentals of our economy and businesses

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what fiscal steps his Department is taking to support small businesses in (a) Coventry North East constituency, (b) Coventry, (c) the West Midlands and (d) England.

Answered by Gareth Davies - Exchequer Secretary (HM Treasury)

Small businesses are the lifeblood of our economy. Small businesses across the West Midlands will benefit from the £105 million the area has received from the UK Shared Prosperity Fund, which ramps up to £1.5bn this coming year. This will enable the West Midlands to invest in business support, people and wider regeneration.

The Government also funds a network of 37 Growth Hubs across England to give free support and advice to businesses. Additionally, the Made Smarter Adoption programme, which has been operating in multiple regions including the West Midlands, helps manufacturing SMEs adopt advanced digital technology and is being expanded to further regions in England in 2025/26.

Question to the Department for Business and Trade:

To ask His Majesty's Government what plans they have to support small firms struggling financially as a result of adverse economic conditions.

Answered by Lord Offord of Garvel - Parliamentary Under Secretary of State (Department for Business and Trade)

Small and medium sized businesses are the backbone of our economy, driving economic growth. The Department for Business and Trade continues to deliver over 40 support schemes that help businesses start, grow and export. At the Autumn Statement, my Rt Hon Friend the Chancellor announced further support for SMEs over the next five years. This support can be accessed through local Growth Hubs, Help to Grow and a dedicated Business Support Helpline. In addition, The British Business Bank improves access to finance to help businesses invest and grow. It currently supports over £12.4bn of finance to over 90,000 businesses.

Question to the Department for Business and Trade:

To ask His Majesty's Government what steps they are taking to support the growth of start-up businesses.

Answered by Earl of Minto - Minister of State (Ministry of Defence)

The Government provides extensive support to businesses through our Help to Grow Management, Business Support Helpline and Growth Hubs. Businesses can also access government-backed financial support from the British Business Bank. The Start Up Loans Company provides loans and support to new entrepreneurs, including a year of free business mentoring for successful applicants. Since the Start Up Loans programme was launched in 2012, over 105,000 loans have been delivered with an aggregate value of more than £1bn (average loan size of £9,547), as of June 2023.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what support his Department is providing to small and medium-sized enterprises to help with costs in the context of the rate of inflation.

Answered by Gareth Davies - Exchequer Secretary (HM Treasury)

The Government recognises the challenges facing businesses and that is why we have made it a priority to halve inflation this year, on the path back to the target of 2%.

We have taken several steps to support small and medium sized enterprises (SMEs), including a substantial package of business rates support worth £13.6bn over the next five years; additional tax relief at a higher rate of 14.5% for R&D intensive SMEs; and the Small Profits Rate will mean 70% of businesses will see no increase in Corporation Tax this year.

The supply side policies announced at Spring Budget – such as action on childcare support – will also provide a boost to growth without fuelling inflation and ease the pressures faced by SMEs by delivering the workforce they need to succeed.

Question to the Department for Business and Trade:

To ask His Majesty's Government what steps they are taking to support small companies with (1) skills, (2) funding, and (3) policy, so they can reach their strategic development.

Answered by Earl of Minto - Minister of State (Ministry of Defence)

The Help to Grow: Management scheme is helping small and medium sized enterprises (SMEs) across the UK learn new skills, reach more customers and boost profits. Additionally, SMEs can access expert advice and guidance via the Business Support Helpline and network of Growth Hubs across England.

Eligible SMEs can access funding via the Recovery Loan Scheme to help them grow and invest. For new and early-stage UK businesses, the Start Up Loan scheme provides access to affordable finance and mentoring support.

Businesses can find government support and advice for growing, starting and exporting through the Help to Grow website: https://helptogrow.campaign.gov.uk/

Businesses wanting to export can find support via the General Export Facility (GEF) and the Export Development Guarantee (EDG).

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will take steps to provide fiscal support for (a) takeaways and (b) other small and micro businesses.

Answered by Gareth Davies - Exchequer Secretary (HM Treasury)

The Government has demonstrated its long-standing commitment to supporting small and micro businesses, entrepreneurs, and businesses on our high streets, including takeaways. At Spring Budget, we confirmed that, from April 2023, the Small Profits Rate will mean 70% of businesses will see no increase in Corporation Tax this April. In fact, the UK has the lowest corporation tax rate in the G7.

In addition, the UK also has a higher VAT registration threshold than any EU member state and second highest in the OECD – which keeps the majority of UK businesses out of VAT altogether. We have also put in place a generous package of Business Rates relief worth £13.6 billion.

The Government continues to invest in the 38 Growth Hubs providing businesses across England with free one-to-one support and advice. Growth Hubs offer a triage, diagnostic and signposting service to make sure that all businesses, whatever their size or sector, know what help is available and can access the most appropriate support.

Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, what steps she plans to take to support small and medium sized businesses with the effects of trends in the level of (a) inflation and (b) energy costs.

Answered by Kevin Hollinrake - Minister of State (Department for Business and Trade)

Government recognises the impact of increased costs on small businesses and is freezing the business rates multiplier for another year, worth £9.3 billion over the next 5 years. Small to medium sized businesses will have also benefitted from a range of government measures, including reversal of the National Insurance rise, cut to fuel duty for 24 months, support via the Energy Bill Relief Scheme and an increase in the Employment Allowance to £5,000.

Question to the Department for Business and Trade:

To ask His Majesty's Government what business expansion grants are available for small and medium-sized enterprises (SMEs).

Answered by Lord Johnson of Lainston - Minister of State (Department for Business and Trade)

Businesses of all sizes can access government-backed finance from the British Business Bank. The Start Up Loans Company provides loans and pre- and post-application support to new entrepreneurs, including a year of free business mentoring for successful applicants. The Recovery Loan Scheme helps smaller businesses access loans and other kinds of finance up to £2 million per business group so they can grow and invest. Additionally, SMEs seeking to grow through exports can access the Export Academy and UK Export Finance.

The newly-launched Help to Grow website contains links to the full range of government funding available to small businesses.

Question to the Department for Business and Trade:

To ask His Majesty's Government what plans they have to establish a framework for smaller employers to incorporate new support, training and employability initiatives.

Answered by Lord Johnson of Lainston - Minister of State (Department for Business and Trade)

Small and medium sized businesses (SMEs) are the backbone of our economy and have a key role to play in driving economic growth.

The Department for Education set a strategy for skills reform in England in the Skills for Jobs white paper, putting employers at the heart of the skills system and the Government is investing an additional £3.8 billion over this Parliament to ensure workers can develop the skills businesses need.

By the end of FY 2022/23 Government will also have invested over £118m for the 38 English Growth Hubs to provide SMEs with free advice, alongside our Business Support Helpline.

Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, what support his Department is providing to help support local business clusters.

Answered by Kevin Hollinrake - Minister of State (Department for Business and Trade)

The Government is supporting clusters across the country through targeted measures such as the Strength in Places Fund and is trialling new approaches of working more closely with high potential places through £100 million of investment for Innovation Accelerators.

Innovate UK also recently invited proposals for a series of Health and Life Science Accelerators that will support the development of early-stage health and life science businesses across the UK. These accelerators will recruit both existing spinouts and new start-ups to test their ideas and develop new concepts. The programmes are expected to start between January 2023 and March 2025.

Question to the Department for Business, Energy and Industrial Strategy:

To ask His Majesty's Government what steps they are taking to provide economic support for Small and Medium-Sized Enterprises (SMEs) this winter, given the increase in inflation.

Answered by Lord Callanan - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)

The Government has reversed the National Insurance rise, which will save SMEs approximately £4,200 on average, cut fuel duty for 12 months and brought in the Energy Bill Relief Scheme, to protect small businesses from high energy costs over the winter.

The Business Support Helpline on 0800 998 1098 enables SMEs in England to access support of all kinds, including grants, loans and business advice. Equivalent services are available in Scotland, Wales and Northern Ireland.

The Recovery Loan Scheme (RLS) helps ensure that smaller businesses can access loans and other kinds of finance for working capital and investment. The current iteration of the scheme was announced on 20 July 2022 and supports finance up to £2 million per business group. RLS is available through 38 accredited lenders including banks, asset finance providers, regional and social lenders.

Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, what recent steps he has taken to support growth for SMEs in levels of (a) production, (b) profit and (c) employment.

Answered by Jane Hunt

Our Help to Grow schemes will help UK small businesses boost productivity and profits. Help to Grow Digital provides financial discounts of up to 50% on approved digital technologies up to £5000 and Help to Grow Management will boost leadership and management skills.

Businesses can get the finance they need through Start-Up loans, and the recent extension to the Recovery Loan Scheme, will help businesses to access loans of up to £2million so businesses can grow and invest.

As a result of government action, there are now more employees on payroll than ever, and we will continue to build a high skilled, high productivity, high wage economy.

Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, what recent discussions he has had with business representative organisations on developing small business clusters to help support businesses growth.

Answered by Jane Hunt

My rt. hon. Friend the Secretary of State and I meet regularly with SMEs, Business Representative Organisations (BROs), Trade Associations and others from a range of sectors across the UK. The Government recognises the power of private sector partnerships and business clusters to drive innovation and investment.

The Government is investing £100m to pilot three new Innovation Accelerators in Glasgow, the West Midlands and Greater Manchester. These are intended to boost economic growth by investing in R&D strengths, boosting innovation diffusion and maximising the economic impact of existing R&D institutions. The Strength in Places Fund, managed by UK Research and Innovation (UKRI), continues to support innovation-led regional growth and enhance local collaborations involving research and innovation.

Question to the Department for Business, Energy and Industrial Strategy:

To ask Her Majesty's Government what plans they have to support small businesses in light of the Office for National Statistics release Producer price inflation, UK: May 2022, published on 22 June, showing that in the last year factory gate prices rose by 15.7 per cent and producer input prices rose by 22.1 per cent.

Answered by Lord Callanan - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)

Small businesses will benefit from the £15 billion of targeted government support to help with the rising cost of living. This brings the total cost of living support measures announced to £37 billion this year. Government has cut fuel duty for 12 months, raised the Employment Allowance to £5,000, and is zero-rating VAT on energy-saving materials. This builds on existing support, including business rates relief worth £7 billion over five years.

Additionally, Help to Grow programmes will enable eligible SMEs to mitigate the effects of rising costs by providing financial discounts on approved digital technologies up to a value of £5000 and improving SME leadership and management skills though subsidised courses.