Oral Answers to Questions

Anna Soubry Excerpts

Tuesday 3rd May 2016 Commons Chamber

[The Minister for Small Business, Industry and Enterprise (Anna Soubry)]

We have a growing and healthy economy, which is good for all business, but which, in particular, encourages people who want to start up their own businesses. We are looking at ways in which we can improve, for example, practices for self-employed people, which is also very helpful. Our start-up loans scheme has provided more than 37,000 loans worth over £210 million.

[Wendy Morton]

In my constituency, the number of registered businesses increased by about 10% between 2014 and 2015. As I am sure my right hon. Friend will agree, that is very welcome. I recently visited Streetly Vets, a new business that has been set up by two sisters in my constituency. Does my right hon. Friend agree, however, that the first few years of being in business can be some of the most challenging, and will she assure me that the Government are doing all that they can to support new and small businesses?

[Anna Soubry]

I absolutely agree with my hon. Friend that it is the first few years that are the trickiest. If you can jump that hurdle, you can achieve almost anything; you can certainly make sure that your business will grow. I have explained about the start-up loans that we do, but the other great achievement of this Government in the past 12 months is our work on cutting business rates. This has been the biggest ever cut in business rates, reducing the burden by £6.7 billion, which will benefit 900,000 smaller properties. That is very good news, especially for small businesses.

[Alison McGovern (Wirral South) (Lab)]

Small businesses might like to start up in the town centre of New Ferry in my constituency, except that footfall has gone through the floor and the Co-op and Lloyds bank are now closing. Who should my constituents blame for the dereliction? Is it the Tory Ministers who withdrew from regeneration, or is it the absentee landlords who bought up property and are now nowhere to be seen?

[Anna Soubry]

I really do not think it is as simple as that. It is unfortunate that when bad news is delivered it is often turned into a party political football. There are all sorts of reasons why a number of high streets continue to have difficulties. Equally, there are all manner of solutions that can be used to turn them around. I would ask the hon. Lady to look at some of the successes of Conservative, Labour and indeed Lib Dem councils in helping and supporting their high streets. Most importantly I would suggest that, rather than talking down her high street, she should be talking it up.

[Vicky Foxcroft (Lewisham, Deptford) (Lab)]

10. What steps the Government are taking to increase take-up of apprenticeships among (a) people with disabilities, (b) care leavers and (c) other disadvantaged groups.

--- Later in debate ---

[Ruth Cadbury (Brentford and Isleworth) (Lab)]

12. What discussions he has had with the Chancellor of the Exchequer on the potential effect on small and medium-sized enterprises of proposed changes to filing of tax returns.

[The Minister for Small Business, Industry and Enterprise (Anna Soubry)]

I talk to Treasury Ministers on a continuing basis, and in my ministerial role I am more than happy to take up the cause of small businesses. I met representatives of the Federation of Small Businesses only last week and they reiterated their concerns about the proposals, but of course this is not a mandatory filing every quarter; it is effectively good bookkeeping. They raised their concerns and I am more than happy to listen to them and, most importantly, to represent them to the Treasury. Also, a consultation is taking place, so there is always room to make sure that we continue to do the right thing.

[Ruth Cadbury]

I am glad that the Minister is listening. My constituent Sheila Knight is the director of a small local business and she is very concerned about the proposal to make businesses submit data quarterly to HMRC. She says:

“It will cause a huge amount of extra work, expense and worry for absolutely no benefit. Like most small businesses, I collate my accounts information once a year and give it to my accountant. Having to do this four times a year will be a huge imposition and my accountant’s fees will be pro rata more expensive.”

Does the Minister not agree that what small businesses need is strategic support from the Government, not more bureaucracy and unnecessary cost?

[Anna Soubry]

It is about reducing bureaucracy and cutting costs for small businesses. It is not a quarterly tax return; it is good, sensible bookkeeping, which good businesses do anyway. Keeping the books in good condition every quarter will help small businesses when they come to submit their annual returns. I am more than happy to meet the hon. Lady’s constituent and explain things to her, because there is a lot of misinformation.

[Kit Malthouse (North West Hampshire) (Con)]

I am pleased to hear that the Minister has met the Federation of Small Businesses, of which I am a proud member. From that meeting, she will know that 60% of small businesses do not currently operate digital accounting systems. Does the Minister understand the rising level of anxiety in that part of the business community? Does she agree that it might be sensible for the Treasury to consider introducing the system on a voluntary basis, which made self-assessment such a success when it was introduced all those years ago?

[Anna Soubry]

My hon. Friend makes a good point. There will always be good, full support for this digital movement. The other thing that is of concern to some small businesses is access to superfast broadband, because there is no point in doing this unless a business has it. Many small businesses are reticent to get up to speed—if I can put it that way—but I am confident that, with the excellent work of my hon. Friend the Minister for Culture and the Digital Economy, we are making huge progress and ensuring that all businesses have access to superfast broadband.

[Bill Esterson (Sefton Central) (Lab)]

The Minister has singularly failed to explain how the change will help businesses. I do not know whether she has ever produced a set of business accounts, but the Financial Secretary to the Treasury told MPs in a Westminster Hall debate in January that it would require a

“a summary of income and expenses.”—[Official Report, 25 January 2016; Vol. 605, c. 36WH.]

As every businessperson knows, that can be done only by putting together the full detail each quarter. Whether the Minister calls it reporting, filing or updating, her claim that the change represents a reduction in red tape is laughable. It is a major increase in bureaucracy, administration and costs, especially for those businesses without digital access. The Government should go away and think again.

[Anna Soubry]

I am one of those who actually had a real job or two before coming to this place. I can therefore assure the hon. Gentleman that, as a self-employed barrister, I absolutely did have to provide accounts each week, but I do not claim to have run a business of more than just myself and maybe one other. The most important thing is that these are not quarterly returns. The hon. Gentleman really should understand what is proposed. It is actually a good way of ensuring that small businesses always keep up to date with how their business is going. The change will enable businesses to do their annual returns considerably better.

--- Later in debate ---

[Jo Cox (Batley and Spen) (Lab)]

15. What recent assessment he has made of trends in productivity levels.

[The Minister for Small Business, Industry and Enterprise (Anna Soubry)]

Productivity, measured as output per hour worked, increased by 1% in 2015 as a whole—the largest annual increase since 2011—and is now 1.7% higher than it was in 2008.

[Jo Cox]

The reality is that this Government’s record on productivity has been one of failure. Last July, they launched their deeply underwhelming productivity plan, which was damned by the Select Committee on Business, Innovation and Skills as

“a vague collection of existing policies”,

the Committee warning that it risked

“collecting dust on Whitehall bookshelves”.

Can the Minister update the House on what steps she is taking to improve on the Government’s record to date?

[Anna Soubry]

I am sorry that it seems the hon. Lady did not hear my answer; I remind her that productivity is now 1.7% higher than it was in 2008 and we saw its largest annual increase since 2011 only last year. I do not know where she is getting her information from—I have my suspicions—but unfortunately she is wrong. This Government are absolutely committed to improving productivity, and we have already heard, by way of example, the Minister for Skills talking about the work we are doing to ensure that we have the right skills—that is an essential part of an effective productivity plan.

[Julie Elliott (Sunderland Central) (Lab)]

T1. If he will make a statement on his departmental responsibilities.

--- Later in debate ---

[Sir Simon Burns (Chelmsford) (Con)]

T6. Does the Secretary of State accept that the proposals to allow waiters and waitresses, rather than restaurant owners, to actually receive tips given to them will be warmly welcomed? Does he not think that the House of Commons should show a lead, because in our own restaurants the agency workers and part-time workers who serve Members and their guests do not receive tips?

[The Minister for Small Business, Industry and Enterprise (Anna Soubry)]

I thank my right hon. Friend for that question. May I begin by thanking and paying a huge tribute to everybody who works in this place, especially those in our catering services? They often have to work the most unsocial hours and often do so in the most difficult of conditions, as they suddenly have a huge influx of us going into the Tea Room or wherever it might be. We perhaps underestimate the work they do. My right hon. Friend makes a very good point and I would be more than happy to take this up with the House authorities. In the meantime, I congratulate my right hon. Friend the Secretary of State on rightly launching this consultation, as when someone, in any facility, pays a tip, they expect the person to whom they want that tip to go to receive it—all of it. I think this will allow us to begin to see real progress, so that we do the right thing on this.

[Ms Angela Eagle (Wallasey) (Lab)]

Two Select Committees of this House are now preparing to examine the collapse of BHS into administration last week, putting at risk 11,000 jobs. Sir Philip Green bought the company for £200 million, took hundreds of millions of pounds out of it in dividend payments for his own family and then sold it for £1 to a bankrupt with no retail experience. What does the Business Secretary think are the issues for public policy as he contemplates the current situation? Does he think this represents responsible ownership?