Oral Answers to Questions

Gareth Thomas Excerpts

Thursday 1st May 2025 Commons Chamber

[Jade Botterill (Ossett and Denby Dale) (Lab)]

10. What recent steps his Department has taken to encourage small businesses to export.

[The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)]

We have begun a series of roadshows, which bring overseas buyers to the UK to meet small businesses here in, for example, clean energy, advanced manufacturing, life sciences, technology, and digital, creative, financial and professional services. In addition, we are offering new online support to help small and medium-sized enterprises win new export orders to EU markets.

[Kirsteen Sullivan]

I know from a recent business roundtable I hosted in my constituency of Bathgate and Linlithgow, and from many meetings with industry, that a common barrier to small business exports is supply chain instability. In the past few years, we have seen massive instability, including from the impact of the pandemic and now from the announcement of tariffs. Disrupted demand forecasting, increased costs of raw materials and uncertainty are damaging fledgling businesses in growing their exports. What specific measures is the Department implementing to help small businesses navigate these challenges, and to ensure they can maintain reliable supply chains as we enter another turbulent time for international trade?

[Gareth Thomas]

I thank my hon. Friend for that question, and I commend her for the business roundtable that she hosted. She is absolutely right, and we recognise that supply chain instability is a critical issue for businesses. We are therefore working hard to minimise the uncertainty that businesses face, both in exporting and in purchasing from key markets. Whether through the economic deal with the US that we are seeking to negotiate, the reset of our relationship with the EU, or new opportunities with India and the Indo-Pacific, we are keen to take down barriers to business. I have to say that the evidence continues to demonstrate that free and fair trade drives down prices, offers better choices for consumers and, crucially, leads to more stable supply chains.

[Jade Botterill]

I recently visited Phoenox Textiles in Denby Dale, a family-run business that proudly continues our community’s heritage in the sector. It raised the concern that, while it operates a “zero to landfill” operation, low-quality, unsustainable imports from Chinese sellers such as Temu undercut its business and the local growth that it sustains. How are the Government addressing this concern, and what are they doing to support British businesses?

[Gareth Thomas]

First, I commend the work of Phoenox Textiles and my hon. Friend for championing its concerns. Because of the concern she has articulated, which we have heard from across the retail sector—I have certainly heard it from members of the Retail Sector Council—my right hon. Friend the Secretary of State recently met the Trade Remedies Authority to agree urgent steps to prevent the dumping of cheap goods in the UK. There will be increased support for businesses to report unfair practices, and my right hon. Friend the Chancellor is also reviewing the customs treatment of low-value imports.

[Nick Timothy (West Suffolk) (Con)]

Last year our trade deficit was £32 billion and, apart from during the pandemic, we have run a deficit every year since 1998. Does the Minister agree that the trade deficit brings severe economic consequences, and is it Government policy to reduce it over the course of this Parliament?

[Gareth Thomas]

The hon. Gentleman is right to highlight the fact that we need to increase exports to all sorts of markets. It is one of the reasons why we are taking urgent steps to agree a new deal with the US, why we are seeking to reset our relationship with the EU, and why we are keen to open up new opportunities through a free trade agreement with India, and new opportunities in the Indo-Pacific. When he served in a senior role under a previous Prime Minister, his party took decisions to cut support for exporters. We are looking at what we can do to help exporters move forward.

[Saqib Bhatti (Meriden and Solihull East) (Con)]

The Minister will know that Meriden and Solihull East is proud to be the home of Jaguar Land Rover. JLR, the supply chain and the small businesses in it are crucial, not just for the constituency, but in exporting. I have written to the Secretary of State asking for a meeting, and I am very willing to work with the Government on this. I recently visited Washington and spoke to Congress people about the damage that tariffs can do. What is the Minister doing to help not just JLR, but those small businesses, and how we can work together?

[Gareth Thomas]

I know my right hon. Friend the Secretary of State is urgently seeking to arrange the meeting with the hon. Member to discuss this issue, because we recognise that this is a key concern of the automotive sector. As I have said, we are seeking to negotiate an economic deal with the US, but we are also looking to work with the automotive industry to increase exports of cars and other things that they produce across all sorts of new markets. One of the roadshows we are organising for small businesses is about that.

[Mr Speaker]

I call the shadow Minister.

[Dame Harriett Baldwin (West Worcestershire) (Con)]

The Government are far from supporting small businesses to export. Businesses of every size, up and down the country, are failing at a rate not seen since the 2008 financial crash, when Labour was last in power. Confidence is slumping, family businesses are closing, millionaires are fleeing the country—and that is before tariffs hit. What representations is the Minister making to the Chancellor about reversing some of the measures that hit business in her Hallowe’en Budget?

[Gareth Thomas]

I had thought that one of the first contributions from the Opposition Front Benchers today would be to celebrate the £1 billion investment by IKEA in the UK. It is opening its flagship store on Oxford Street today, and committing to a range of investments in other towns and cities across the UK. When the hon. Lady was on the Treasury Committee, I do not know whether she looked at the cuts the previous Government made to help for small businesses in getting their goods into new markets. We are taking active steps to increase the opportunities for small businesses in overseas markets.

[Ellie Chowns (North Herefordshire) (Green)]

2. What steps his Department is taking to negotiate trade agreements with the UK’s main trading partners.

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[Charlie Dewhirst (Bridlington and The Wolds) (Con)]

6. What steps he is taking to support the hospitality industry.

[The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)]

Hospitality businesses are vital to our communities and to economic growth in the UK, which is why we plan to introduce permanently lower tax rates for retail, hospitality and leisure properties with rateable values of less than £500,000. In addition, we recently held our first licensing taskforce meeting, which aims to reduce red tape for the sector. Next Thursday, on VE Day, pubs and bars across the country will be able to stay open until late to enable everyone to celebrate all those who served during the second world war.

[Gregory Stafford]

Pubs and the hospitality industry are by their very nature seasonal businesses and rely heavily on flexible working patterns. I saw this at first hand when being served by many younger staff on my recent pub tour of the constituency. Why is the Minister, through the powers in the Employment Rights Bill, seeking to end the flexible contracts that benefit these young people, which will end up causing pubs to have to close?

[Gareth Thomas]

I gently remind the hon. Gentleman of the dismal record of the Conservatives when it came to support for the hospitality sector; 10,000 pubs closed between 2010 and 2024. The Employment Rights Bill will not have the effect that he describes. The Bill will help to put money into people’s pockets, which is exactly what we need to do to help the hospitality industry going forward.

[Charlie Dewhirst]

In my constituency, 115 pubs and five breweries contribute £40 million to the local economy and support 1,500 jobs. As highlighted by the British Beer and Pub Association, the sector faces a disproportionate business rates burden, with pubs paying a higher share relative to their turnover, so will the Government commit to increasing the upper threshold of small business rate relief in order that these iconic British institutions continue to thrive?

[Gareth Thomas]

I certainly take the hon. Member’s broader point about the significance of business rates to the hospitality sector, particularly pubs. I have heard strong representations from the industry about the need for business rates reform. The hon. Member will be delighted that this Government have instigated significant business rates reform, which previous Governments over the last 14 years did not do, including a permanently lower rate for retail, hospitality and leisure.

[Chris Kane (Stirling and Strathallan) (Lab)]

Residents in Buchlyvie in my constituency are losing their only pub, which is being turned into holiday lets. This comes despite the objections of local residents and Stirling council’s planning panel refusing the change-of-use application. The Scottish Government’s planning reporter has stepped in and made what many local people think is a short-sighted decision. Does the Minister agree that local village pubs, like libraries and community centres, are vital to local wellbeing and cohesion and that we should do all we can to help them thrive as key parts of our local economies and social infrastructure?

[Gareth Thomas]

I completely agree with my hon. Friend about the significance of pubs across the UK, particularly in rural communities such as those he represents. It is one reason why we are in the final throes of agreeing extra funding for the great organisation Pub is the Hub, which supports pubs in rural areas to adapt to changing needs and enables them to continue to be the vital social hubs that they are in communities. I hope that the Scottish Government will have heard my hon. Friend’s comments and will recognise the need to follow the UK Government’s line and instigate significant business rates reform. Certainly, they need to look at provision on business rates relief, which is not as generous in Scotland, thanks to their decisions, as here in the UK, thanks to the generosity of our Chancellor.

[Mr Speaker]

I call the shadow Secretary of State.

[Andrew Griffith (Arundel and South Downs) (Con)]

In a grave and exceptionally rare step, five major business groups, including the Confederation of British Industry, Make UK, the Institute of Directors, and the Federation of Small Businesses, have all written to condemn the Employment Rights Bill, and their views are shared by UKHospitality and many others. They say that the Bill will damage growth and employment. I know that, and the Minister knows that. This Bill will hurt business. Every business tells me this, and they are telling him exactly the same. Does the Secretary of State think that is why so many of his Ministers are unable to name a single business that supports the Bill and his Government’s jobs tax?

[Gareth Thomas]

I wondered whether the shadow Secretary of State might finally use this set of questions to take the opportunity to apologise for helping to write the Liz Truss Budget, which drove interest rates up fourteen times and did more damage to business than any other single measure in recent times. We had to take difficult decisions to sort out the fiscal inheritance we got, and we recognised that to tackle the cost of living crisis that the Conservatives bequeathed us, we needed to ensure that there is more money in people’s pockets. The Employment Rights Bill will help to do just that.

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

7. What recent discussions he has had with the Secretary of State for Environment, Food and Rural Affairs on the potential impact of his trade negotiations with the US on the farming sector.

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[James Wild (North West Norfolk) (Con)]

9. What steps he is taking to help support high street businesses.

[The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)]

We are reforming business rates, rolling out banking hubs, stamping out late payments, empowering communities to bring vacant properties on the high street back into use and beginning to tackle the antisocial behaviour and crime that has bedevilled the high street over the last decade. Last month, we also announced a licensing taskforce that will recommend ways to improve our licensing regime to foster vibrant hospitality, the night-time economy and cultural industries on the high street.

[James Wild]

A British Retail Consortium survey this week of major retailers employing half a million people found that 70% say that the £5 billion a year Employment Rights Bill will have a negative impact on their business and half said that it would lead to job cuts. How does the Minister expect our high streets to cope with that extra cost, coming on top of higher business rates and higher national insurance? When will the Government actually listen to businesses and to the people creating jobs in this country?

[Gareth Thomas]

The Conservative party has a rather dismal record on support to workers. I gently say to the hon. Gentleman that most businesses that do the right thing by their employees support the Employment Rights Bill. One reason the Bill is so important is that it will help put more money into people’s pockets, and that will have a knock-on benefit for high street businesses.

[Alison Bennett (Mid Sussex) (LD)]

11. What steps his Department is taking to support businesses in rural areas.

[The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)]

Rural areas offer significant potential for growth and are central to our economy, so we are working closely with other Government Departments, including the Department for Environment, Food and Rural Affairs, to improve the quality of life for people living and working in rural areas. Later this year, we will launch the business growth service, which, in partnership with the growth hub network in England, will make it easier for businesses, including those in rural areas, to get the information and support that they need to thrive.

[Alison Bennett]

I thank the Minister for his answer. I am encouraged that his Department is working with other Departments.

There are brilliant vineyards in Mid Sussex, such as Bolney wine estate, which produce high-quality English wine. They form a vital part of the rural economy and they also entice domestic and international tourism. With the end of the wine duty easement on 1 February causing significant concerns across the sector, what steps is the Minister taking to ensure that the English wine industry is not damaged by that and instead can continue to grow and go from strength to strength?

[Gareth Thomas]

We recognise that the English wine industry, which has gone from strength to strength in recent years, is a crucial part of the rural economy and of the food and drink offer that the UK can rightly be proud of. It is one reason that we are seeking to increase exports of food and drink, including helping English vineyards to export English wine to a range of markets overseas, and we will certainly continue to do that.

[Blake Stephenson (Mid Bedfordshire) (Con)]

12. What recent discussions he has had with his US counterpart on tariffs.

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[Paul Davies (Colne Valley) (Lab)]

T2. Pubs and restaurants are part of a thriving hospitality sector in my constituency. What initiatives is the Department planning to support such small businesses and boost economic growth in Colne Valley? Of course, I invite the Minister to visit my constituency and experience our fantastic hospitality sector.

[The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)]

The hon. Member for Farnham and Bordon (Gregory Stafford) might not invite Ministers to his constituency, but I am grateful for my hon. Friend’s invitation—diary permitting, I would be delighted to come along. Last year, my right hon. Friend the Secretary of State announced our plans for a business growth service, which should make it easier for UK businesses to get Government advice and support in order to grow. I hope that will make a real difference. In addition, we are considering what else we can do to unlock better access to finance for small businesses such as those in my hon. Friend’s constituency.

[Mr Speaker]

I call the shadow Secretary of State.

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[Tony Vaughan (Folkestone and Hythe) (Lab)]

T4. Folkestone and Hythe has a long history as a thriving tourist destination, but in recent years, with Brexit and rising costs, things are getting harder for businesses in our coastal communities. What steps is the Department taking to support the growth of the tourism and hospitality industry in Kent?

[Gareth Thomas]

I know from personal experience that there are some great hospitality and tourism businesses in Kent, and we want to see them do even better in the coming months and years. That is why we are seeking to support the sector through initiatives such as business rates reform and the licensing taskforce, which has just started work. It is also why the Government will launch a national visitor economy strategy this autumn, as we seek to welcome 50 million international visitors annually by 2030—and many of them, I suspect, will visit Kent.

[Sir Jeremy Hunt (Godalming and Ash) (Con)]

If the Secretary of State is not going to visit Farnham, can I tempt him to visit Fountain Beauty Therapy in Hurtmore, a much-loved business in my constituency? The owner, Clare Porter, talks about the extreme pressure caused by the Employment Rights Bill, the hike in employers’ national insurance and the withdrawal of business rates relief, leading to a crisis in the hair and beauty sector. What measures is the Secretary of State planning to alleviate pressure on this very important sector?

[Peter Swallow (Bracknell) (Lab)]

T5. This month I met Berkshire Growth Hub, which works with businesses in Bracknell and beyond on everything from starting up to opportunities in AI. How can we ensure that growth hubs work with Skills England to continue to deliver local growth in communities such as mine?

[Gareth Thomas]

I commend my hon. Friend for meeting with Berkshire Growth Hub. Growth hubs play a crucial role in local economies. We want to supplement their work with our business growth service, which is set to launch later this year, and we are working with Skills England to identify the skills shortages in particular areas. I am happy to ensure that Skills England talks to Berkshire Growth Hub through my hon. Friend, so that the particular skills challenges in Berkshire are understood by Skills England.

[Sir Desmond Swayne (New Forest West) (Con)]

Arrangements at the border are disadvantaging companies on both sides of the channel, so there are mutual advantages to be had in negotiations without feeling the need to make any major concessions, aren’t there?