Asked by: Alexander Stafford (Conservative - Rother Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment he has made of the adequacy of the level at which (a) business rates and (b) VAT are set for (i) micro businesses and (ii) small and medium sized enterprises in the hospitality sector.
Answered by Victoria Atkins - Shadow Secretary of State for Environment, Food and Rural Affairs
The recent revaluation of business rates, which came into effect on 1 April 2023, ensures rateable values, and therefore bills, more accurately reflect current market values.
The Government has announced a package worth £13.6 billion over the next five years to support businesses with the revaluation. This includes an increased 75 per cent relief for retail, hospitality and leisure properties, up to a cash cap of £100,000 per business for 2023-2024. This is a tax cut worth over £2 billion for around 230,000 RHL businesses, to support the high street and protect small shops.
Regarding small and microbusinesses in particular, the Government has continued its generous Small Business Rate Relief scheme which means properties with a rateable value below £12,000 (over a third of properties, 720,000) pay no business rates at all, with an additional 76,000 in the taper, with a rateable value below £15,000, benefitting from reduced bills.
The Government recognises that accounting for VAT can be a burden on small businesses. This is why, at £85,000, the UK has a higher VAT registration threshold than any EU Member State and the second highest in the OECD. This keeps the majority of UK businesses out of VAT altogether (3.1 of 5.6 million). Of the 2.5 million businesses that are registered, 1.2 million exceed the threshold, and roughly 1.3 million are registered voluntarily.
Asked by: Jim Shannon (Democratic Unionist Party - Strangford)
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 - Shadow Minister (Business and Trade)
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.
Asked by: Bob Seely (Conservative - Isle of Wight)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the adequacy of business rates and VAT for (a) micro businesses and (b) SMEs.
Answered by Victoria Atkins - Shadow Secretary of State for Environment, Food and Rural Affairs
On business rates, the Government has announced a package of support worth £13.6 billion for businesses over the next five years. Together with the revaluation, this package ensures bills will more accurately reflect current market values whilst protecting businesses from large bill increases.
The Government's generous Small Business Rate Relief scheme sees over a third of properties (720,000) pay no business rates at all, with an additional 76,000 in the taper seeing their bills reduced. Combined with an updated Retail, Hospitality & Leisure (RHL) relief, 80% of RHL properties will see bills fall or stay the same at the 2023 Revaluation, protecting the UK's high street businesses.
The Government is also providing over £500 million of support over the next three years with a new Supporting Small Business scheme. This will cap bill increases to £50 per month (£600 per year) for businesses losing some or all of their Small Business or Rural Rate Relief due to the revaluation.
The Government recognises that accounting for VAT can be a burden on businesses. This is why, at £85,000, the UK has a higher VAT registration threshold than any EU Member State and the second highest in the OECD. This keeps the majority of UK businesses out of VAT altogether.
Although the Government keeps all taxes under review, there are no current plans to change the levels of VAT.
Asked by: Rachael Maskell (Labour (Co-op) - York Central)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero about the potential for businesses to feed into the energy grid through the installation of micro-renewable energy generation systems.
Answered by Graham Stuart
My Rt Hon. Friend the Secretary of State has regular discussions with ministerial colleagues on a number of issues.
Business can already export low-carbon electricity back to the grid. Additionally, the Smart Export Guarantee, launched in January 2020, enables small-scale generators to receive payments from electricity suppliers for electricity which they export back to the grid, providing certain criteria are met.
Asked by: Baroness Debbonaire (Labour - Life peer)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, if she will make an assessment of the implications for her policies of the Regulatory Policy Committee’s red rating of the Government’s impact assessment for the Strikes (Minimum Service Levels) Bill.
Answered by Kevin Hollinrake - Shadow Minister without Portfolio
Our legislation is sensible and proportionate and is designed to protect lives and livelihoods.
The Department is grateful for the Regulatory Policy Committee's feedback on the Impact Assessment and is currently taking their opinion into consideration, particularly the assessment of the impacts of the Bill on small and micro businesses - the only red-rated aspect of the analysis.
As stated previously, individual impact assessments will accompany consultations on the specific minimum service level for each relevant service which will be better able to assess the impacts on SMEs.
Asked by: Sarah Olney (Liberal Democrat - Richmond Park)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, whether it remains her Department's policy to (a) expand the definition of a Small or Medium Sized Enterprise to include companies with up to 500 employees and (b) consult on extending the threshold to businesses with up to 1,000 employees.
Answered by Kevin Hollinrake - Shadow Minister without Portfolio
In October 2022, the Government extended the Small and Micro Business Assessment process to include a new test for medium sized businesses of up to 499 employees. This will help ensure that the impact of new and renewed regulations on these businesses are considered, and exemptions or mitigations applied where it is appropriate. There are no plans to extend the threshold further.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government what steps they are taking to support small rural businesses.
Answered by Lord Johnson of Lainston
Government has announced £13.6 billion of support for businesses over the next five years, including those in rural communities. This includes freezing the business rates multiplier for another year and protection for small businesses who lose eligibility for either Small Business or Rural Rate Relief through a more generous Supporting Small Business scheme worth over £500 million
Government has also reversed the National Insurance rise, introduced the Energy Bill Relief Scheme and announced the Energy Bills Discount Scheme, cut fuel duty for 12 months, raised the Employment Allowance to £5,000 and exempted small and micro businesses from regulations where possible.
Asked by: Matt Western (Labour - Warwick and Leamington)
Question
To ask the Secretary of State for Culture, Media and Sport, what programmes and grants exist to support innovation in UK games studios.
Answered by Julia Lopez - Shadow Secretary of State for Science, Innovation and Technology
As part of a wider package to support the growth of the creative industries, the Government is committed to supporting the UK’s video game sector which brings economic, cultural and social benefits across the UK.
The Department for Culture, Media and Sport (DCMS) has committed to an £8 million expansion of the UK Games Fund (UKGF) (2022-25). The UKGF provides grants to support new intellectual property (IP) and talent development in the UK games sector. Its Tranzfuser programme supports graduates across the UK to develop valuable business skills. Games companies making interactive narrative games can access the International Business Development strand of the £21 million UK Global Screen Fund which provides financial support for business strategies that drive growth, as well as intellectual property support.
In addition, DCMS is delivering a £17.5 million Create Growth Programme which supports high-growth creative businesses, including games companies, to access finance across six regions in England outside of London to reach their growth potential.
The Government is also investing over £100 million to support innovation in the creative industries. This includes the £75.6 million Convergent Screen Technologies and Performance in RealTime (CoSTAR) programme to build a new national R&D infrastructure for the screen industries and the £30 million Creative Catalyst Programme to fund small and micro creative businesses to innovate.
The Government will set out interventions to support skills and workforce development in the upcoming Creative Industries Sector Vision. The Government is building a skills system that is employer-focused, high-quality, and fit for the future. This includes supporting more people to complete an apprenticeship, including the Level 7 game programmer standard, or a Higher Technical Qualification, rolling out more T Levels, and establishing our network of 21 Institutes of Technology. We are also expanding our Skills Bootcamps in 2024 and are considering how games and other creative sectors can best make use of these.
Asked by: Matt Western (Labour - Warwick and Leamington)
Question
To ask the Secretary of State for Culture, Media and Sport, what grants and incentive schemes exist to help video games studios start-up and grow their businesses.
Answered by Julia Lopez - Shadow Secretary of State for Science, Innovation and Technology
As part of a wider package to support the growth of the creative industries, the Government is committed to supporting the UK’s video game sector which brings economic, cultural and social benefits across the UK.
The Department for Culture, Media and Sport (DCMS) has committed to an £8 million expansion of the UK Games Fund (UKGF) (2022-25). The UKGF provides grants to support new intellectual property (IP) and talent development in the UK games sector. Its Tranzfuser programme supports graduates across the UK to develop valuable business skills. Games companies making interactive narrative games can access the International Business Development strand of the £21 million UK Global Screen Fund which provides financial support for business strategies that drive growth, as well as intellectual property support.
In addition, DCMS is delivering a £17.5 million Create Growth Programme which supports high-growth creative businesses, including games companies, to access finance across six regions in England outside of London to reach their growth potential.
The Government is also investing over £100 million to support innovation in the creative industries. This includes the £75.6 million Convergent Screen Technologies and Performance in RealTime (CoSTAR) programme to build a new national R&D infrastructure for the screen industries and the £30 million Creative Catalyst Programme to fund small and micro creative businesses to innovate.
The Government will set out interventions to support skills and workforce development in the upcoming Creative Industries Sector Vision. The Government is building a skills system that is employer-focused, high-quality, and fit for the future. This includes supporting more people to complete an apprenticeship, including the Level 7 game programmer standard, or a Higher Technical Qualification, rolling out more T Levels, and establishing our network of 21 Institutes of Technology. We are also expanding our Skills Bootcamps in 2024 and are considering how games and other creative sectors can best make use of these.
Asked by: Matt Western (Labour - Warwick and Leamington)
Question
To ask the Secretary of State for Culture, Media and Sport, what grants and schemes exist to help video games developers train their staff.
Answered by Julia Lopez - Shadow Secretary of State for Science, Innovation and Technology
As part of a wider package to support the growth of the creative industries, the Government is committed to supporting the UK’s video game sector which brings economic, cultural and social benefits across the UK.
The Department for Culture, Media and Sport (DCMS) has committed to an £8 million expansion of the UK Games Fund (UKGF) (2022-25). The UKGF provides grants to support new intellectual property (IP) and talent development in the UK games sector. Its Tranzfuser programme supports graduates across the UK to develop valuable business skills. Games companies making interactive narrative games can access the International Business Development strand of the £21 million UK Global Screen Fund which provides financial support for business strategies that drive growth, as well as intellectual property support.
In addition, DCMS is delivering a £17.5 million Create Growth Programme which supports high-growth creative businesses, including games companies, to access finance across six regions in England outside of London to reach their growth potential.
The Government is also investing over £100 million to support innovation in the creative industries. This includes the £75.6 million Convergent Screen Technologies and Performance in RealTime (CoSTAR) programme to build a new national R&D infrastructure for the screen industries and the £30 million Creative Catalyst Programme to fund small and micro creative businesses to innovate.
The Government will set out interventions to support skills and workforce development in the upcoming Creative Industries Sector Vision. The Government is building a skills system that is employer-focused, high-quality, and fit for the future. This includes supporting more people to complete an apprenticeship, including the Level 7 game programmer standard, or a Higher Technical Qualification, rolling out more T Levels, and establishing our network of 21 Institutes of Technology. We are also expanding our Skills Bootcamps in 2024 and are considering how games and other creative sectors can best make use of these.