Oral Answers to Questions
Debate between Gareth Thomas and Nusrat Ghani(1 month ago)
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Gareth Thomas
I associate myself with your statement, Mr Speaker, and with the comments of the hon. Lady.
I recognise that there is concern about this issue among cycle manufacturers. The hon. Lady may be aware that some anti-dumping measures have been extended until 2029, but some have been lifted as a result of the work of the Trade Remedies Authority. We are always happy to meet cycle manufacturers to discuss their concerns—whether it is with the hon. Lady or directly with industry, I am very happy to ensure that such a meeting takes place.
Dame Harriett Baldwin (West Worcestershire) (Con)
It is not just cycle manufacturers that are having to pedal hard to survive under this Government. With business survey after business survey stating that tax is the biggest worry for business, will the Minister take this opportunity to assure businesses that the Chancellor will not be coming back to burden them with more in her Budget this autumn?
Gareth Thomas
One measure that the hon. Gentleman referenced was business rates. As I said in answer to previous questions, we are determined to introduce permanently lower business rates for the retail sector for businesses with properties under a value of £500,000. I hope that will make a difference to businesses not only in Leicester in his constituency, but more generally across the country.
Greg Smith (Mid Buckinghamshire) (Con)
At the heart of every high street are wonderful hospitality SMEs—pubs, cafés, restaurants, bars and coffee shops—yet the 2024 Budget was a hammer blow to them. With £3.4 billion of extra costs, one in 10 restaurants faces closure this year. Indeed, Labour’s Budget has already cost hospitality 69,000 jobs. For context, in the same period the previous year, hospitality created 18,000 new jobs. Can the Minister assure the House that businesses that are hanging on by a thread will not face a hard landing this winter?
Gareth Thomas
I very much sympathise with my hon. Friend’s frustration about what both the SNP and the Conservatives have done to free parking in his constituency. I sympathise because the Tory-run council in my constituency has taken similar steps to curtail free parking, which has undoubtedly had an impact on the town centre. I hope that the concerns my hon. Friend has articulated today will be heard loud and clear in his constituency, and that action will be taken. Our SME strategy will set out a range of steps that we are determined to take to back small businesses and help entrepreneurs across Britain.
Madam Deputy Speaker (Ms Nusrat Ghani)
I call the Liberal Democrat spokesperson.
Sarah Olney (Richmond Park) (LD)
The value that hospitality businesses bring to their local communities goes far beyond their economic contributions: they also provide a vital social value and essential entry-level jobs. Flexible hours and conditions in the sector help those with other responsibilities, such as carers and new parents, to access work, while also offering many young people their first jobs. However, retail and hospitality businesses have been hit hard by tax changes in the October Budget, and they are reporting reduced hours, cancelled investment and closures; there have been nearly 70,000 hospitality job losses just since October. As economic strategies are rolled out, what steps is the Minister taking to ensure that Department for Work and Pensions goals to get people back to work are not being undermined by policies that shrink job opportunities in these sectors?
Susan Murray
In my constituency and across Scotland, small and medium-sized businesses have taken blow after blow. The Conservatives bungled Brexit, increasing import costs, and energy costs are soaring. Most recently, the hike in national insurance contributions is decimating job opportunities in small and medium-sized businesses. What are the Government doing to support SMEs, which are at the heart of our economic growth, and to get people off benefits and back into work?
Gareth Thomas
Yes, Madam Deputy Speaker. I gently say to the hon. Lady that in a recent survey almost three quarters of SME businesses were confident about the future. She is right to challenge us to go further in increasing support for SMEs. One of the ways that we are doing that is by increasing access to finance for SMEs, through the significant expansion in the capacity of the British Business Bank.
Bill Esterson (Sefton Central) (Lab)
SME manufacturers are a key part of the planned renaissance in manufacturing in this country. Some of them are raising concerns about a lack of involvement in the Industrial Strategy Advisory Council. Will the Minister confirm that they are very much involved and have an important role to play in developing the SME strategy that he referred to?
Gareth Thomas
Absolutely. We want to hear from businesses up and down the UK, across different sectors, about the practical measures that we can take to support them and their plans to grow and develop. If my hon. Friend has particular examples of businesses that want to make representations, I am sure that we as a ministerial team would want to hear from them.
Madam Deputy Speaker (Ms Nusrat Ghani)
I call the Liberal Democrat spokesperson.
Sarah Olney (Richmond Park) (LD)
The Liberal Democrats welcome the plans in the recently announced industrial strategy to reduce some of the world’s highest industrial energy prices. However, businesses across the UK, especially in hospitality and on our high streets, are still struggling with unaffordable energy costs. What steps is the Secretary of State taking to ensure that small businesses can benefit from more sustainable pricing? Will he encourage his Cabinet colleagues to consider proposals set out by the Liberal Democrats yesterday to break the link between gas prices and energy costs, which would halve energy bills in a decade, so that people and businesses across the country can enjoy the true benefits of cheap, clean and renewable power?
The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)
The Government-backed invest in women taskforce is addressing many of these issues through its ecosystem working group, which promotes better access to networks, to support and to procurement opportunities. My hon. Friend is absolutely right, though, to say that we need to go further. The small business strategy will set out a range of further measures in that regard.
Madam Deputy Speaker (Ms Nusrat Ghani)
I call the shadow Secretary of State.
Business and the Economy
Debate between Gareth Thomas and Nusrat Ghani(2 months, 3 weeks ago)
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Gareth Thomas
With due respect to the hon. Lady, it is not one or the other: a pro-worker economy is a pro-business economy. That sentiment has been echoed by experts such as Simon Deakin, a professor of law at the University of Cambridge. He says that, on average, strengthening employment laws in this country has had pro-employment effects. He said that the consensus on the economic impacts of labour laws is that, far from being harmful to growth, they contribute positively to productivity. Right now, it is worth noting that optimism among business leaders is rising, with improved expectations for investment, hiring and costs. Employment has risen by nearly 200,000, as I have said, since we took office. Payroll employment remains near record highs at around 30.3 million, and wage growth has been consistently outpacing inflation. These indicators suggest a labour market that remains robust and responsive, not one being held back, as the Opposition contend.
Let there be no doubt: this Government are delivering on our plan for change with investment and reform to deliver growth, put more money in people’s pockets, rebuild Britain and realise a decade of national renewal. We are the party of entrepreneurs and wealth creation. We are the party of workers, the party for economic growth and the party of social justice. The Conservative party has no ideas, no imagination, just a dismal record that it does not have the courage to face up to. We are delivering for British workers and for British businesses, so I urge the House to reject the motion before us.
Madam Deputy Speaker (Ms Nusrat Ghani)
I call the Liberal Democrat spokesperson.
Oral Answers to Questions
Debate between Gareth Thomas and Nusrat Ghani(6 months, 2 weeks ago)
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Gareth Thomas
I referred to the establishment of the business growth service in answer to an earlier question. We are working with the Scottish Government to begin to think through how that service can support businesses in Scotland and complement the support already provided by the Scottish Government. We are clear on the need to reform business rates to support retail, hospitality and leisure businesses on the high street. I am very happy to meet my hon. Friend if he thinks there are further initiatives we can take to help small businesses in Falkirk.
Madam Deputy Speaker (Ms Nusrat Ghani)
I call the Liberal Democrat spokesperson.
Clive Jones (Wokingham) (LD)
R Young Art Gallery is the last art gallery in Wokingham town centre and a proud feature of our high street. However, political inactivity on business rates reform means that it is on the precipice of closing. I was shocked to learn that it is the impending cuts to business rate relief, with no measures in the short term to provide financial support, that have led the owner to fear for the survival of his business. High streets across the country continue to struggle. What is the Minister doing to ensure that small, independent businesses such as R Young Art Gallery are supported?
Gareth Thomas
I pay tribute to my hon. Friend for her support for Rolls-Royce, which is one of our great British companies leading the way in many export markets across the world. Only yesterday I was discussing with the Minister for Skills our plans to reform the growth and skills levy to make it easier for businesses such as Rolls-Royce to recruit apprentices and find the talent that they need to continue to be successful.
Future of the Post Office
Debate between Gareth Thomas and Nusrat Ghani(9 months ago)
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The Parliamentary Under-Secretary of State for Business and Trade (Gareth Thomas)
With permission, I will make a statement on the Post Office. Frankly, the Government inherited a Post Office that is simply not fit for purpose, following disinterest from the previous Government, a toxic culture in head office and years of under-investment.
Our top priority remains delivering redress to those affected by the Horizon scandal. We have already taken significant steps to increase the payment of redress, which has nearly doubled under this Government. Let me be clear with the House, though. There are still complex cases to resolve, and we have identified gaps in the compensation process, but we are beginning to make progress. As of 31 October, £438 million has been paid to over 3,100 claimants. In July, we launched the new Horizon convictions redress scheme for victims whose convictions were overturned by legislation, and we have announced our intention to set up an appeals system for the much-criticised Horizon shortfall scheme.
We were clear in our manifesto that we will work to strengthen the post office network in consultation with postmasters, trade unions and customers. The post office network provides critical services that are valued by communities across the whole of the UK. Their essential services go beyond post; they provide access to cash, banking and other financial services too. This Government recognise that access to cash remains particularly important to millions of people across the UK. Through its network of 11,500 branches across the UK, the Post Office continues to provide vital banking services to communities and businesses alike through the banking framework, and to protect access to cash.
I know how highly this House rightly values postmasters and what they provide day in and day out to the communities they serve, but we have to recognise that the Post Office is far from perfect. We have seen this from the evidence given at the inquiry. It is clear that there needs to be a significant cultural change at the Post Office to ensure that it genuinely prioritises the needs of postmasters and delivers customers’ needs far into the future. It is also clear that more needs to be done to rebuild trust within the business and with the public who depend on its services. It is also no secret that the business is facing commercial challenges. Nearly half of its branches are not profitable or only make a small profit from the Post Office business, postmaster pay has not increased materially for a decade, and the company has a high cost base and needs to transform its IT system.
Earlier today, Nigel Railton set out his ambition for the future of the Post Office, in his role as its chair. Postmasters have to be placed front and centre of the Post Office, and we agree that the culture of Post Office headquarters, in particular, needs to change fundamentally to deliver that. As part of this, the Post Office plans to reduce central costs and look seriously at other ways to deliver efficiencies, which should enable real-terms increases in postmaster pay.
Mr Railton’s ambitions are a new deal for postmasters that puts postmasters at the heart of the Post Office. There will be stronger postmaster engagement in the running of the business. As part of this, a new postmaster panel will be established to enable current postmasters to work with the company to improve the support and training provided to postmasters. The Post Office will also set up a new consultative council that will work with the Post Office’s senior management on how these new plans are taken forward, to provide genuine challenge and maintain focus on the needs of postmasters. Mr Railton’s plan seeks to makes changes to the business, with the ambition of significantly increasing postmaster remuneration, and it sets out an intention to transform the service and support that postmasters receive from the Post Office.
No decisions to close any or all of the remaining directly managed branches have been taken. The Post Office will continue to deliver on the 11,500 minimum branches requirement set by Government. We have made it clear to the Post Office that we expect it to consult postmasters, trade unions and other stakeholders before any individual decisions are taken. Aspects of the plans are also subject to Government funding and the outcomes of the upcoming spending review.
Lastly, we have already set out our plan to publish a Green Paper to consult the public on the long-term future of the Post Office, not least on how it should be governed after a decade of decline. Doing nothing at the Post Office is simply not an option. There is more work to be done, but there has to be change. I commend this statement to the House.
Gareth Thomas
I am grateful to the shadow Minister for some of his comments. I am happy to confirm that I will keep the House updated on work around the future of the Post Office, as well as, even more importantly, on the work to ensure that all those sub-postmasters who were the victims of the Horizon scandal get full and fair redress. On that point, I should say at the outset that I have met a series of sub-postmasters who were victims of the Horizon scandal, and each of them certainly left their mark on me. Their stories will stay with me for a very long time, and in that regard I am sure that I speak for the whole House, given the conversations that Members have had with individual sub-postmasters in their constituencies. I am therefore acutely aware of my responsibility, and the Government’s responsibility more generally, to follow through on our commitment to speed up redress.
The number of cases that have been settled with full and fair compensation has nearly doubled in the four months since we came into government, compared with the four months before. We have taken a series of additional steps to try to make it easier for sub-postmasters who were the victims of the scandal to get full and fair redress quickly, not least by fixing some payments for those applying under the Horizon shortfall scheme and similarly fixing some payments under the Horizon convictions redress scheme, which we launched back in July.
The hon. Gentleman’s wider point about the Budget’s impact on the high street sounded like he was replaying his lines from last week’s Budget debate. I recall him being the right-hand man to Kwasi Kwarteng, who helped to do huge damage to businesses up and down the country and helped to drive interest rates to a 16-year high, so I gently suggest that he has more work to do to be convincing on his support for businesses.
I hope the hon. Gentleman is willing to take responsibility for another impact, because more than 9,500 bank branches have closed over the past 14 years, which has had a considerable impact on the future of the high street. With Nigel Railton, our plan is to improve banking services and to roll out banking hubs, which I hope will make a significant difference.
On the Budget more generally, given the financial mess in which the Conservatives left the country and given the lack of money set aside for Horizon compensation, I think the hon. Gentleman should be a little more honest to this House about his responsibility for the scale of the mess we inherited.
Madam Deputy Speaker (Ms Nusrat Ghani)
I call the Chair of the Business and Trade Committee.
Gareth Thomas
I welcome that the Committee’s first act is to look at redress for sub-postmasters who were victims of the Horizon scandal. I will happily appear next week to talk through where we are on compensation payments.
My right hon. Friend is right to say that one of the bright spots in the Post Office’s future lies in banking, and the continuing commitment of its sub-postmasters is the brightest spot. With the right support from the financial services industry, there is clearly more that the Post Office could offer on the high street through banking hubs and the post office network. We will work with the Post Office, and the banks have a particular responsibility, given how many bank branches have closed, to work constructively with the Post Office to improve the banking offer on the high street.
Madam Deputy Speaker (Ms Nusrat Ghani)
I call the Liberal Democrat spokesperson.
Gareth Thomas
I underline that no decision has been taken on any or all the directly managed branches. However, these branches cost significantly more to run than those run by franchisees. We have made it clear to the Post Office that, as it reviews these costs, it must talk to sub-postmasters, trade unions and other stakeholders.
The more general point about ensuring that people in rural areas can access a post office branch is well understood within the Department and across Government. There has been no decision to change the commitment to run 11,500 branches or to change the level of Government funding provided to run the network across the country.
I agree with the hon. Member for Chippenham (Sarah Gibson) that the Post Office can do more. That is one reason why we committed in opposition—and are delivering in government—to rolling out more banking hubs, which will be run by the Post Office. She made an interesting point about digital exclusion and the Post Office’s potential to do more in that regard.
Lastly, given my background, I am interested in mutualisation, but I hope the hon. Lady will recognise that there are significant challenges in determining whether mutualisation is a realistic possibility at this stage. One reason for our commitment to publishing a Green Paper next year is to explore these issues in more detail.
Gareth Thomas
I am acutely aware of the responsibility of Government to ensure that every community has access to a post office branch. That is why we are continuing to provide a £50 million subsidy to the Post Office to maintain the network going forward. It is also why we think the Post Office should do more when it comes to providing banking services—it is one of the potential areas for it to grow its business. In that regard, given the retreat of bank branches from constituencies such as my hon. Friend’s, we absolutely think that the banks should work directly with the Post Office to improve the banking offer in all our communities.
Madam Deputy Speaker (Ms Nusrat Ghani)
It would help if the Minister occasionally looked at the Chair and kept his answers short so that we can get everybody in.
Sir Gavin Williamson (Stone, Great Wyrley and Penkridge) (Con)
In my constituency, there is real concern about the loss of more rural and village branches. Can the Minister give us some assurance that he will do everything that he can to preserve this vital link and that he will look at how the Post Office can operate more like a commercial franchise operator, which would support and help postmasters to really maximise their business?
Gareth Thomas
The situation the hon. Lady describes is exactly why I welcome the fact that the new management of the Post Office is putting the issue of sub-postmaster pay front and centre in its thinking. If we do not do something to shift sub-postmaster pay upwards, we will see more sub-postmasters making the sorts of decisions that she describes. We must do something urgently to address this. The Post Office management and chair are rightly homing in on that question as fundamental to the future of the Post Office. As I have underlined, I think there is more that the Post Office could do on banking; that view is certainly shared by the Post Office senior management team, and we are working directly with them to see what more can be done.
Madam Deputy Speaker (Ms Nusrat Ghani)
If everybody gives short questions—and short answers, Minister—we can get this done in the next 15 minutes.
Peter Swallow (Bracknell) (Lab)
My constituents in Crowthorne are rightly proud of our high street, but as there is no direct access on that street to banking services or a post office branch, they struggle to access vital services. Does the Minister agree that today’s announcement highlights the need to roll out more banking hubs, while setting out a viable future for post offices, so that communities such as mine can access the vital services they need?