Budget: Small and Medium-sized Businesses

Baroness Bowles of Berkhamsted Excerpts

Thursday 27th November 2025 Lords Chamber

[Baroness Elliott of Whitburn Bay (Lab)]

My Lords—

[Baroness Bowles of Berkhamsted (LD)]

My Lords—

[Captain of the King’s Bodyguard of the Yeomen of the Guard and Deputy Chief Whip (Baroness Wheeler) (Lab)]

It is the turn of the Labour Party.

--- Later in debate ---

[Lord Livermore (Lab)]

I am grateful to the noble Baroness for her question. No, I do not accept that the Budget is bad overall for growth and for SMEs. As I have said, the OBR has upgraded Britain’s growth forecast for this year from 1% to 1.5%. The noble Baroness’s policy of going back to austerity and cutting spending by £47 billion would be exactly the wrong thing to do at this point for growth. We need to maintain investment in our economy. In this Budget, we are cutting inflation, cutting borrowing every year of the forecast and keeping interest rates down. We are maintaining higher levels of public investment for decades, building houses, roads, railways and energy infrastructure, and backing our fastest-growing companies. She mentioned growth. She may have seen this morning that JP Morgan, the global investment bank, announced a $10 billion investment in the UK with its intention to build its new landmark tower in London. Jamie Dimon, the CEO, said:

“The UK Government's priority of economic growth has been a critical factor in helping us make this decision”.

[Baroness Bowles of Berkhamsted (LD)]

If the Government are supporting scale-ups and start-ups, what do they think about the fact that every single start-up and scale-up, even those very successful at fundraising, has been eliminated from the Department for Transport’s recent procurement framework and that they were asked to provide indemnities if they were to participate? How does that measure up with HMT asking regulators and the private sector to take more risk and not doing so itself? How do they get value out of the investment that they are putting in if it is not followed up with routes to revenue?

[Lord Livermore (Lab)]

The noble Baroness is absolutely right about the importance of procurement to scale-up firms; I completely agree with her on that point. As part of the announcements that we made yesterday, we said that the Government will act as a better early customer to help UK firms prove commercial potential, including through a new innovation marketplace to fast-track strategically important firms into public procurement.