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 assessment they have made of reports that the number of company insolvencies last month were 17 per cent higher than one year earlier; and what steps they are taking to support struggling businesses.
Answered by Lord Offord of Garvel - Parliamentary Under Secretary of State (Department for Business and Trade)
Company insolvencies in 2023 were 14% higher than in 2022. However, the liquidation rate of 53.7 insolvencies per 10,000 active companies was lower than the recessionary peak of 94.7 per 10,000 in 2009. The average number of quarterly company insolvencies in the past 3 years (2021-2023) was 5,112. This is 28% higher than 2017 to 2019, when the quarterly average was 3,982.
The Government continues to support businesses, through Help to Grow: Management, Business Support Helpline, and Growth Hubs. Businesses can also access government-backed financial support from the British Business Bank. Additionally, the Help to Grow campaign and website has been refreshed, creating a one-stop shop for SMEs to find the information they need to grow and scale up.
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 (1) to assess the impact of the EU's introduction of digital product passports on trade agreements and standards between the EU and the UK, and (2) to ensure compatibility and interoperability with global trading partners' systems.
Answered by Lord Johnson of Lainston - Minister of State (Department for Business and Trade)
My Department is reviewing the product safety framework to ensure it is responsive to new challenges and fit for the future. This includes exploring digital solutions. We have recently announced our intention to introduce new legislation to allow digital labelling for a wide range of product regulations and are working with delivery partners to explore making product safety information digitally available.
As we develop our future regulatory framework we are considering the approaches being taken globally and are working closely with other departments to ensure an across Government approach that best meets the UK’s needs.
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 safeguard firms from the effects of rising prices and supply chain disruptions.
Answered by Lord Johnson of Lainston - Minister of State (Department for Business and Trade)
This government is committed to ensuring that the UK is a reliable, supportive place to do business where firms can import the goods they need efficiently. At Spring Budget 2024 the government announced measures that continue to support business, including increasing the VAT registration threshold and extending the Recovery Loan Scheme (now named the Growth Guarantee Scheme).
Mitigating supply chain disruptions remains a priority for government. In January 2024, the government published the Critical Imports and Supply Chains Strategy, which will help UK businesses build secure and reliable supply chains and access the goods they need.
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 assessment they have made of the impact of the fall in the UK goods trade on national productivity, particularly in sectors affected by any barriers to trade resulting from Brexit.
Answered by Lord Offord of Garvel - Parliamentary Under Secretary of State (Department for Business and Trade)
Since leaving the EU, the Department for Business and Trade has secured free trade deals with 73 countries in addition to our EU partners, which accounted for £1.1 trillion UK trade in 2022, and simplified import tariffs to lower costs for businesses and households.
The UK’s total trade with the world (including goods and services) increased by £36bn (inflation adjusted) in 2023 compared to 2018. Productivity in the UK's Manufacturing sector grew by 10% between 2016 and 2022, the highest manufacturing productivity growth in the G7.
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 exporters affected by delays and higher shipping costs as a result of Houthi attacks in the Red Sea.
Answered by Lord Offord of Garvel - Parliamentary Under Secretary of State (Department for Business and Trade)
The Department of Business and Trade is closely monitoring the Red Sea situation and we are proactively engaging with key businesses to identify trade issues, offer support on the crisis and updating businesses on the latest supply chain information. More broadly, our membership in Operation Prosperity Guardian demonstrates the Government's commitment to ensuring the Red Sea is safe for seafarers and traders to use. Our Critical Imports and Supply Chains Strategy will help UK business build the secure and reliable supply chains vital to the UK’s economic prosperity, national security and essential services.
UK businesses can access DBT’s wealth of export support via Great.gov.uk. This comprises a digital self-serve offer and our wider network of support, including trade advisors, export champions, the Export Academy, International Markets network, and UK Export Finance.
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 combat anti-competitive practices in the consumer products sector, in particular (1) price-fixing, and (2) collusion.
Answered by Lord Johnson of Lainston - Minister of State (Department for Business and Trade)
Price fixing and collusion, in any sector, is illegal under the Competition Act 1998. The Competition and Markets Authority, the “CMA”, is responsible for investigating anti-competitive practices. As an independent authority, the CMA has discretion to investigate competition cases which, according to its prioritisation principles, it considers most appropriate.
The Digital Markets Competition and Consumers Bill, currently being considered by Parliament, will update the CMA’s powers to investigate anti-competitive behaviour. This includes powers to interview a broader range of individuals and require the production of information stored remotely when executing a warrant.
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 ensure that the Enhanced Trade and Investment Partnership (ETIP) with Nigeria supports (1) stable economic development, (2) job creation, and (3) investment sectors of mutual interest.
Answered by Lord Johnson of Lainston - Minister of State (Department for Business and Trade)
The UK-Nigeria Enhanced Trade and Investment Partnership (ETIP) builds on the previous UK-Nigeria Economic and Development Forum (EDF) and is a non-legally binding arrangement. The ETIP aims to promote technical cooperation, dialogue and best-practice sharing on areas of mutual interest, for example, through standalone commitments on clean growth and investment. Both sides are committed to making the partnership a success through implementation via joint working groups.
The ETIP aims to promote stable economic development and job creation in both economies, building on our already strong trading relationship with Nigeria, which totalled £6.7 billion in the 12 months to September 2023.
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 ensure that the potential trade agreement with India (1) promotes fair and balanced terms, and (2) contains safeguards that protect the interest of the economy.
Answered by Lord Offord of Garvel - Parliamentary Under Secretary of State (Department for Business and Trade)
We are working hard on a deal with India that would boost our current trading relationship, already worth over £38 billion, helping businesses and communities across the UK.
We remain clear that we will only sign when we have a deal that is fair, reciprocal, and ultimately in the best interests of the British people and the economy.
We ensure that all trade agreements maintain our ability to apply trade remedies, including a global safeguard, under the WTO framework to protect UK industries.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government, following reports that corporate insolvencies rose to their highest level in 30 years last year, what steps they are taking to assist companies that are struggling.
Answered by Lord Offord of Garvel - Parliamentary Under Secretary of State (Department for Business and Trade)
The Government delivered nearly £27 billion of Business Grant Support during the pandemic and continues to support UK small businesses via a substantial business rates package worth £4.3 billion over the next 5 years. The Energy Bill Relief Scheme protects eligible businesses from excessively high energy bills over winter periods.
The British Business Bank supports 12.4bn of finance through targeted interventions such as The Recovery Loan Scheme and Pay as You Grow for businesses under the Bounce Back Loan Scheme, offering repayment options where required.
Additional SME support is available via GOV.UK, the Business Support Helpline and local Growth Hubs.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government, following reports that businesses have faced increasing difficulties and costs trading with the EU since Brexit, what steps they are taking to (1) identify areas of improvement, and (2) provide support.
Answered by Lord Offord of Garvel - Parliamentary Under Secretary of State (Department for Business and Trade)
The UK-EU Trade and Cooperation Agreement allows for a new relationship with the EU, giving us the freedom to do things differently and better.
The Department is leading a cross-government effort to identify trade barriers and break them down with our EU partners. For example, in the year to March 2023, we broke down 45 market access barriers in the HMTC Europe region, a 10% increase year-on-year.
HMG provides a wide range of support, including help to grow overseas by providing information, training, and expert support to exporters, whilst HMRC’s Customs & International Trade Helpline ensures businesses have access to the additional support they need.