Reducing Costs for Businesses
Matthew Offord Excerpts(2 years, 3 months ago)
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The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Lee Rowley)
I am grateful for the opportunity to contribute to the debate.
I agree with the hon. Member for Stalybridge and Hyde (Jonathan Reynolds) that this has been an extremely difficult time. He is right to highlight the impact on businesses across the country: it is difficult to overstate the stresses and strains that businesses face, and this has been one of the toughest periods for business and industry since the second world war. From restrictions to rising energy costs, from supply chain shortages to rising inflation, businesses have had to weather an especially turbulent storm. They have had to cope with the logistical and financial disruption brought about by the coronavirus, while keeping staff and customers safe against a disease that we did not initially know much about and that has frequently required rapid changes. We remain extremely grateful for their fortitude and resilience.
Throughout the pandemic, the Government have tried to do what we can, in the most extraordinary period of our lifetime, to support businesses through the tough times. The interventions that we have made are unprecedented, even for a politician like me who does not like talking about policy solely in terms of input. We have mobilised, necessarily, hundreds of billions of pounds in support from the taxpayer to provide one of the world’s most comprehensive and generous economic responses to the pandemic. Our plan backed business, because we know that only by supporting business can we enable it to create jobs, strengthen communities and support the whole economy. It came on top of other pro-business measures that have always been at the heart of how we, as a Conservative Government, run a strong economy.
In the Chancellor’s 2020 Budget, he announced a series of substantial interventions through a business rates relief package. The majority of businesses in the hospitality and leisure sectors will see a 75% reduction in their rates bill across this financial year and 50% capped business rates relief next year. We recognise that the hospitality and leisure sectors have been hit particularly hard, so there is a reduced 12.5% VAT rate to support cash flow and viability until the end of March, which has helped to keep 150,000 business afloat and has supported nearly 2.5 million jobs. On top of that, we had the £1.5 billion covid-19 additional relief fund for those who had not previously had business rates support.
Dr Matthew Offord (Hendon) (Con)
As the Minister will know, the threshold turnover for small businesses to register for VAT is £85,000. A constituent emailed me today to say that as a result of the pandemic, inflation has increased and he has had to increase his prices. Does the Minister agree with him that the Government could raise the VAT threshold to ensure that businesses can grow and the money can be used for investment?
Lee Rowley
My hon. Friend tempts me to get into policy, which is not the purpose of Opposition day debates—as much as the Opposition would like it to be—nor something that I have control over. He has made his point, however, for which I thank him.
We had all that support, and then when omicron came along, the Chancellor announced a further £1 billion of support for the most affected businesses, in particular, again, hospitality and leisure businesses, which had seen a steep drop in consumer demand. Taken together, that shows the Government acting in extraordinary times. I am pleased that the IMF praised our support measures as,
“one of the best examples of coordinated action globally”.
UK Gas Market
Matthew Offord Excerpts(2 years, 7 months ago)
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Kwasi Kwarteng
The hon. Gentleman is right to raise that issue. Clearly, to have interconnectors fail in the way they did last week, in the midst of a global gas price spike, is very concerning. We are looking at what went wrong and seeing what we can do with National Grid to hold it to account and to make sure that the risk of this happening again is minimised.
Dr Matthew Offord (Hendon) (Con)
The rise in the wholesale price of gas began back in January, with it rising by 250% since then. Why did no one in the Department anticipate this scenario?
Kwasi Kwarteng
We have anticipated many scenarios. I alluded to the fact that the oil price went from about $20 a barrel to $80 a barrel within just one year, and we have always been aware that commodity prices, particularly where demand can be very volatile, can be extremely volatile indeed. We look at that on a very regular basis.
International Climate Action
Matthew Offord Excerpts(4 years, 7 months ago)
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Andrea Leadsom
The hon. Lady will know that there are regular and frequent discussions between officials at all levels on how to meet our carbon commitments. Those will continue and will, I dare say, be increased in the run-up to COP 26 next year, so there will be plenty of opportunities for collaboration between nations.
Dr Matthew Offord (Hendon) (Con)
It has been reported that 38% of Americans believe that we face a climate crisis—slightly fewer than Americans who believe that aliens walk among us. What is the Secretary of State doing to encourage all countries to treat climate change as a priority?
Andrea Leadsom
As others have done, my hon. Friend makes the important point on the need for global action. In seeking to host COP 26 in Glasgow, we demonstrate our determination to be part of the solution and to lead other nations into showing the same level of commitment.