Oral Answers to Questions Debate
Full Debate: Read Full DebateLindsay Hoyle
Main Page: Lindsay Hoyle (Speaker - Chorley)Department Debates - View all Lindsay Hoyle's debates with the Department for Business and Trade
(1 day, 14 hours ago)
Commons ChamberLast month in Business and Trade questions, I asked the Secretary of State to show some backbone and stand up to the Chancellor and say, “No more business taxes”. But he did not: far from permanently lower business rates, small and medium-sized businesses on our high streets are experiencing enormous rate hikes. Will the Minister apologise to those retail and hospitality businesses who feel so misled?
No, because I want the hon. Lady to apologise for what the Conservatives did to the British economy and British businesses. Why is it that, following the Brexit that they delivered to this country, only one in 10 British businesses are exporting, whereas three out of 10 French businesses and four out of 10 German businesses export? It is because they gave us a Brexit which, frankly, was not fit for purpose. That is precisely what we should be changing.
Of course there are problems for lots of businesses up and down the country, but I note that every single time we ask the Conservatives, “Where is the money to come from to pay for improving the NHS and putting our public services back on their feet?” they always say it will come from some random budget. [Interruption.] Just as when the shadow Business Secretary, the hon. Member for Arundel and South Downs (Andrew Griffith) was the Financial Secretary to the Treasury for Liz Truss, he wanted us to—
I did not hear an answer to my question. To add insult to injury to the retail and hospitality businesses on our high streets, the letter that has gone out from the Ministry of Housing, Communities and Local Government about the change in business rates gives completely different information from the guidance on the Treasury website. The difference means thousands and thousands of pounds. Will the Minister commit today to getting in touch with his Cabinet colleague to ensure that those letters are corrected?
Mr Speaker, I will find some Strepsils for you later.
Well, I will find some hearing aids for the hon. Lady, because she refused to listen to the answer I was providing. Basically, when the Conservatives left government, they had not provided a single penny to make sure the cliff edge would not affect every single small business in this country. That is the problem they should be apologising for. [Interruption.] I cannot hear what she is chuntering, so I probably need a hearing aid, too. Of course I am happy to look into the letters she is talking about, but, really, the Conservatives need to get with the programme. Even the leader of the Conservative party now admits that Brexit was a “shock” on a level with covid and the economic crisis—but it was a self-inflicted shock.
First of all, we have given £5 billion more to the Scottish Government; I sometimes just wish they would stop whining and moaning, and get on with delivering what they can with the budget that we provided to them. Secondly, I have met the Scotch Whisky Association frequently since I came into this post at the beginning of September. It is delighted that we are delivering trade deals around the world. The trade deal with India, in particular, will reduce tariffs in India from 150% to 75% and, in 10 years, to 40%. That will make a radical difference to the ability to export Scotch whisky around the world.
The Government have repeatedly said that they would introduce permanently lower business rates. We were pleased to hear the Chancellor announce lower multipliers in the Budget, but the recently announced higher valuations will wipe out any benefit that businesses will get from the lower multipliers. UKHospitality estimates that the average increase for hospitality businesses will be 76% over the next three years; that compares with warehouses, offices and large supermarkets, whose rates will go up by 16%, 7% and 4% respectively. Given that it has transpired that the Government were informed of the higher valuations back in September, how does that align with their pledge to support small businesses, and how do the Government plan to meet the commitment, in their own small business strategy, to bring down business rates bills?
Blair McDougall
On this, as on all things, my hon. Friend is a strong voice for the problems faced by her local people. I know that she raised those concerns about local services and resourcing challenges, particularly in Middleton, with Royal Mail. I understand that Royal Mail has recruited 17 more staff in the past few weeks, and that the Middleton delivery office is now fully staffed. As I say, I am discussing such issues with Royal Mail, and it recognises the need to improve.
Mr Speaker, on behalf of the whole House, I wish all our heroic posties a merry Christmas at this most difficult time of year for them.
Chris McDonald
The Government are, of course, very concerned about cost pressures on hospitality businesses. The Under-Secretary of State for Business and Trade, my hon. Friend the Member for East Renfrewshire (Blair McDougall) met with hospitality businesses just this week to discuss exactly that. The hon. Member raises the question of a reduction in value added tax, which would affect the whole industry, so it would be something of a blunt instrument. Instead, the Government are providing transitional support for those businesses, particularly on business rates. We continue to listen to and work with the sector.
I wish to come in after question 6, Mr Speaker—apologies.
That is not what we have been told by your department, but I am sure we can make arrangements accordingly.
Andrew Ranger (Wrexham) (Lab)
We are looking at all those issues in the round. We need to ensure that there is the support that people need in a variety of different ways. Some of that is about ensuring that bills get paid on time and some is making sure that those businesses have the access to finance that they have historically found difficult. We need to build on the successes and enable people to diversify more. That is precisely what our Department is there to help with. If the hon. Lady has people who want to meet me, I am happy to do that, but I can assure her that we are determined to drive economic growth.
Five Lib Dem Lords a-leaping. That is all it took for the Liberal Democrat party to throw every British business under the bus and expose them to the unimaginable liability of infinite tribunal payouts. It is hard to think of a more anti-growth, anti-job measure. On Monday, the Liberal Democrat spokesman was against, on Wednesday they were for and goodness knows where they will be tomorrow. Does the Minister agree that British business would have an entirely fair case to dismiss the lot of them?
I can count; the hon. Member cannot. Let me remind him: growth under the Tories was 1.5%, and growth under Labour is 2.2%. Which is higher? It is higher under Labour, isn’t it? Why did we lose the vote last night? Because of 25 Tory hereditary peers. Why on earth would that be? Why do we think they might not be willing to support Labour? Look, it is absolutely clear that it is business that builds economic growth, but we cannot create a wealthy nation if we do not tackle poverty, and we cannot tackle poverty unless we grow the economy—just like a prosperous business cannot be built on the backs of the workers, and that is what we will never do.
Thank you, Mr Speaker—I appreciate you giving me the time.
I listened carefully to the Minister’s response to my hon. Friend the Member for Bath (Wera Hobhouse). Some £90 billion is being lost every year in tax receipts, 20,000 small firms have stopped all exports to the EU and 33% of currently trading businesses are experiencing extra costs. The Prime Minister’s chief economic adviser has recommended a customs union with the EU. The Deputy Prime Minister has also suggested that countries within a customs union tend to see stronger economic growth, and the Minister agrees, so what is his Government going to do about it?
We are going to get the best possible deal that we can out of the European Union. That is one of the reasons that I was in Brussels only yesterday alongside Nick Thomas-Symonds, the Minister for the Cabinet Office. We are getting a better deal from the European Union. We want to ensure that we have frictionless trade with the EU—that was what was promised by the ragtag and bobtail of that lot on the Conservative Benches —and that is what we will deliver. But I say to the hon. Member that in all earnestness we had a manifesto commitment, and that is what we will stick by.
As the Minister knows, we do not normally use names, and he will not be doing it again.
Maya Ellis (Ribble Valley) (Lab)
Kate Dearden
I thank the hon. Member for raising her concerns on behalf of her constituents and businesses. We do recognise the ongoing pressures and are acting. Last night I met lots of colleagues from across the industry, and I want to make sure that we continue to talk with the sector and with pubs to understand the questions they face. The main transitional support for ratepayers losing RHL relief is through our supporting small business scheme, which also helps those losing small business rates relief or the rural rate relief at the revaluation. We are supporting pubs and continue to work with them and support the sector. I thank her for raising that.
Rebecca Paul (Reigate) (Con)
It is incredibly depressing that the Minister does not appear to recognise the seriousness of the situation for pubs in Bognor Regis and Littlehampton and, indeed, across the country, with around eight closing every week. Pubs already face huge costs and hiked taxes—there really are no more pips to squeak. It can be no surprise that, since the Chancellor’s Budget, some landlords, already emotionally drained from a difficult year, do not have the stomach to check their new business rates liability until after Christmas. If the Minister truly values our pubs, will she take meaningful action, rather than just tell us that business rates are going down when they are actually going up?
I apologise on behalf of the Secretary of State, who is striking deals in the United States of America. In recent weeks, we have announced £2.5 billion of investment in the UK’s first small modular reactor site at Wylfa, launched a critical minerals strategy and done a deal with the US on pharmaceuticals.
Mr Speaker, in true Christmas spirit, I can assure you as Trade Minister that there is no tariff on gold, frankincense or myrrh, and Santa Claus can travel freely without a visa—although apparently, he knows when you’ve been bad or good, so be good for goodness’ sake!
Bobby Dean
Thank you, Mr Speaker. As you probably know, south London is wonderful, but you may not know that it is one of the UK’s largest regional economies. Last week my local council, the London borough of Sutton, launched its economic growth plan, inviting businesses to take advantage of opportunities in the area. Will the Minister meet me and the local council leader to connect the business community with all the opportunities that exist in my borough?
Order. One of us is going to have to sit down. Please, it is topicals and I have some Members who did not get in before you. You’ve got to help them, please.
The Parliamentary Under-Secretary of State for Business and Trade (Chris McDonald)
I thank my hon. Friend for her question, and for so kindly hosting me on a trip to Falmouth port, where I saw for myself the great potential in her constituency for critical minerals and floating offshore wind. I recognise the skills issue, and the Government are supporting the sector through the Government’s clean energy jobs plan and another £180 million for demonstration projects. She should be assured that I have raised the potential of Falmouth, particularly the extensive anchorage there, with both the National Wealth Fund and the Crown Estate.
Labour’s steel strategy was originally promised in spring 2025, but yesterday we learned from a written ministerial statement, snuck out without Ministers coming to the House, that the strategy will now not be published in 2025 at all—it is more likely to be spring 2026. We have no steel strategy after 18 months, there is no sight of the US tariff agreement on steel that the Prime Minister claimed to have on 8 May, and no deal with the Chinese owners of British Steel. Will the Minister give the sector the Christmas present that it wants and publish the steel strategy?
I backed the national minimum wage. Because I have been here since the time of Queen Victoria, I remember a time when the Conservative party—backed by the Lib Dems, incidentally—held out completely against the idea of a national minimum wage. If we are going to build successful businesses in this country, it is important that we have a national minimum wage that really pays the bills and enables people to put food on the table for their kids.
Liam Byrne (Birmingham Hodge Hill and Solihull North) (Lab)
May I welcome the deal with the United States to set zero tariffs on pharmaceutical exports? Together with the British Business Bank’s investment of £100 million in biotech, that is a real boost. However, the US offer was for just three years, whereas the price adjustment we have promised for the NHS is permanent. When the Secretary of State met the Secretary of Commerce and the United States Trade Representative in America last night, what assurance did he get that the Americans will not come back and reimpose tariffs on UK pharmaceuticals in three years’ time?
Bobby Dean
On a point of order, Mr Speaker. The Minister indicated to the House that the Liberal Democrats were against the national minimum wage in the ’90s. My own memories are hazy, but I am reliably informed that that was not the case, so I hope the Minister will correct the record.
That is not a point of order, but you have certainly put it on the record. We will leave it at that.